Agenda packet — Paradise City Council, June 9, 2026 (part 1 of 2)

Town of Paradise
Town Council Meeting Agenda
6:00 PM – June 09, 2026
Doug LaMalfa Town Council Chambers – 5555 Skyway, Paradise, CA

Meeting Procedures
I. The Mayor is the Presiding Chair and is responsible for maintaining an orderly meeting. The Mayor calls the meeting to order and introduces each item on the agenda.

II. The Town staff then provides a report to Council and answers questions from the Council.

III. Citizens are encouraged to participate in the meeting process and are provided several opportunities to address Council. Any speaker addressing the Council is limited to three minutes per speaker - fifteen minutes per agenda item A. If you wish to address the Council regarding a specific agenda item, please complete a “Request to Address Council” card and give it to the Town Clerk prior to the beginning of the meeting. This process is voluntary and allows for citizens to be called to the speaker podium in alphabetical order.

Comments and questions from the public must be directed to the Presiding Chair and Town Council Members (please do not address staff.) Town staff is available to address citizen concerns Monday through Thursday at Town Hall between the hours of 8am and 5pm.

B. If you wish to address Council regarding an item not on the agenda, you may do so under Item 4, “Public Communication.” Again, please fill out a card and give it to the Town Clerk before the meeting. State Law prohibits Council action on items not listed on a public agenda.

In compliance with the Americans with Disabilities Act (ADA) Compliance, persons who need special accommodations to participate in the Town Council meeting may contact the Town Clerk at least three business days prior to the date of the meeting to provide time for any such accommodation.

Town Manager, Jennifer Macarthy
Town Attorney, Scott E. Huber
Town Clerk/Elections Official, Melanie Elvis
CDD, Planning & Onsite, Susan Hartman
CDD, Building & Code Enforcement, Tony Lindsey
Finance Director/Town Treasurer, Aimee Beleu
Public Works Director/Town Engineer, Marc Mattox
Division Chief, CAL FIRE/Paradise Fire, Jason Finney
Chief of Police, Eric Reinbold
Recovery & Economic Development Director, Colette Curtis Human Resources & Risk Management Director, Crystal Peters Information Systems Director, Luis Marquez
Mayor, Steve Crowder
Vice Mayor, Steve “Woody” Culleton
Council Member, Greg Bolin
Council Member, Heidi Lange
Council Member, Ronald Lassonde
1 1. OPENING
1a. Call to Order
1b. Pledge of Allegiance to the Flag of the United States of America 1c. Invocation
1d. Roll Call
1e. Presentation by Fire Chief Jason Finney on the 2026 fire season outlook. 1f. p6 Camp Fire Recovery Updates- Written reports are included in the packet.

Colette Curtis, Recovery and Economic Development Director- recovery projects, advocacy, economic recovery and developments, communications, emergency operations and Housing updates.

Marc Mattox, Assistant Town Manager- infrastructure update. 1g. p15 Paradise Sewer Project Update by Town Engineer Marc Mattox.

2. CONSENT CALENDAR
One roll call vote is taken for all items. Consent items are considered to be routine business that does not call for discussion.
2a. p17 Approve minutes of the May 12, 2026 Special and Regular Town Council meetings and the May 14, 2026 Special Town Council meeting. (Melanie Elvis/Town Clerk)
2b. p27 Approve May 2026 Cash Disbursements in the amount of $5,727,355.50. (Finance Director/Aimee Beleu)
2c. p35 1. Declare outdated and unserviceable fire hose as surplus property; and, 2. Adopt Resolution No. 2026-____, "A Resolution of the Town Council of the Town of Paradise declaring certain town property to be surplus and authorizing disposal in accordance with Town policies and applicable regulations." (Jason Finney/Fire Chief)
2d. p39 Concur with staff recommendation to file a CEQA Notice of Exemption for the Skyway Widening (CIP 9425) and Skyway Link (CIP 9424) Improvement Projects. (Marc Mattox/Assistant Town Manager) 2e. p45 Adopt Resolution No. 2026-___, “A Resolution of the Town Council of the Town of Paradise approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2023-2024 funding year of the State CDBG Mitigation Resilience Infrastructure (MITRIP) program.” (Marc Mattox/Assistant Town Manager)

3. ITEMS REMOVED FROM CONSENT CALENDAR

4. PUBLIC COMMUNICATION
For matters that are not on the Council business agenda, speakers are allowed three (3) minutes to address the Council. The Town Council is prohibited from taking action on matters that are not listed on the public agenda. The Council may briefly respond for clarification and may refer the matter to the Town staff. 2 3

5. PUBLIC HEARINGS
For items that require a published legal notice and/or a mailed notice.

Public Hearing Procedure:

A. Staff Report
B. Mayor opens the hearing for public comment in the following order:
i. Ask Town Clerk if there are any cards submitted
ii. Ask if there is anyone else wishing to comment
C. Mayor closes the hearing
D. Council discussion and vote
5a. p49 Conduct a public hearing and receive a report on the Town’s vacancies and recruitment and retention efforts, pursuant to Assembly Bill (AB) 2561. (ROLL CALL VOTE) (Crystal Peters/ Human Resources & Risk Management Director)

6. COUNCIL CONSIDERATION
Action items are presented by staff and the vote of each Council Member must be announced. A roll call vote is taken for each item on the action calendar. Citizens are allowed three (3) minutes to comment on agenda items.
6a. p51 Receive and file the Town's first Annual Financial Health & Organizational Impact Report. (ROLL CALL VOTE) (Marc
Mattox/Assistant Town Manager)
6b. p92 Receive an update on the Defensible Space Inspection Program and provide direction on the following:

1. Convert both limited-term, expiring October 2026, Defensible Space Inspector positions to full-time equivalent positions; or 2. Provide alternative directions as deemed appropriate by the Council. (ROLL CALL VOTE) (Tony Lindsey/Community Development Director)
6c. p97 1. Direct staff to hire an Economic Development Coordinator staff position, either as a permanent or limited term position; and, a. Adopt Resolution No. 2026-___ “ A Resolution of the Town Council of the Town of Paradise, California, approving job classification descriptions; and
b. Adopt Resolution No. 2026-____, “A Resolution of the Town Council of the Town of Paradise, California, adopting an amendment to the salary pay plan for the Town of Paradise employees for the fiscal year 2025-2026; or

2. Direct staff to issue a Request for Qualifications for a Consultant firm to provide Economic Development Coordination services; or

3. Give alternate direction to staff. (ROLL CALL VOTE) (Colette Curtis/Recovery & Economic Development Director)
6d. p109 1. Consider reviewing and receive the FEMA/Cal OES Emergency Warning System (EWS) Project Closeout Report; and 2. Provide direction to staff regarding long-term Emergency Warning System maintenance 3 options for inclusion in the Fiscal Year 2026 budget process; and 3. Review and provide Council direction regarding any desired modifications to the Emergency Warning System monthly testing procedures moving forward. (ROLL CALL VOTE) (Colette Curtis/ Recovery and Economic Development Director)
6e. p175 1. Approve the Paradise Community Development Block Grant Disaster Recovery – Infrastructure Action Plan Amendment 5; or, 2. Provide alternate direction for utilization of additional funds. (ROLL CALL VOTE) (Marc Mattox/ Assistant Town Manager)
6f. p200 1. Consider adopting Resolution No. 2026-___, "A Resolution of the Town Council of the Town of Paradise Modifying the Paradise Sewer Project Description to Include a Hybrid Gravity/Low Pressure Collection System, Membrane Bioreactor Wastewater Treatment Facility, and Surface Water Discharge," consistent with the recommendation of the Sewer Project Ad Hoc Committee and based upon the findings of subsequent site suitability investigations completed following Council action on August 14, 2025; and 2. Direct staff to proceed with environmental review, permitting, preliminary engineering, site acquisition activities, and funding pursuits consistent with the modified project description; and 3. Direct staff to continue pursuing state, federal, and other funding opportunities necessary to maximize the Phase 1 Sewer Service Area and preserve opportunities for future system expansion. (ROLL CALL VOTE) (Marc Mattox/ Assistant Town Manager)
6g. p345 1. Consider receiving and file the first quarterly update to the 2025 Building Division Audit Corrective Action Plan, covering the period from adoption through May 30, 2026. (ROLL CALL VOTE) (Marc Mattox/ Assistant Town Manager)
6h. p383 1. Consider the formation of a Grand Jury Response Ad Hoc Committee, and; 2. The appointment of two Councilmembers to serve on the committee. (ROLL CALL VOTE) (Jennifer Macarthy/ Town Manager)

7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Council Initiated Items
7a1. Discuss holding two Council meetings per month. (CULLETON) 7b. p385 Council written reports on committee representation. 7c. Future Agenda Items

8. STAFF COMMUNICATION
8a. Town Manager Report

9. CLOSED SESSION – None
4 5

10. ADJOURNMENT

5 Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 1(f)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Monthly Recovery Update

LONG TERM
RECOVERY PLAN:

Yes
COUNCIL ACTION REQUESTED:

1. None
Background:

This report continues the Monthly Updates provided to keep the Town Council apprised of important developments related to the recovery of the Town of Paradise from the Camp Fire.

Included in this update are items related to recovery projects, advocacy economic recovery and development, communications and emergency operations.

Analysis:

ECONOMC DEVELOPMENT
Populateion
CDBG-DR Economic Development
 Compliance Consultant is now on board and advising Town and Partners.  Workforce Development Coordinator began work in May 2026  Town Staff and Partners are moving forward with plans for first course availability in June 2026, with expanded offerings in Fall 2027.

Economic Development Committee
 The Economic Development Committee has been formed at the direction of Council.  The Committee identified working with businesses as a top priority and has begun planning several “business sector summits” to hear from the businesses directly.  The business summits will be held on June 15, 22, and 29.  The Committee is now a standing committee and will be publicly noticed starting in June.

Insurance Advocacy Committee
 The Insurance Advocacy Committee has been formed at the direction of Council.  The Committee is now a standing committee and will be publicly noticed starting in June.  Current areas of focus:
6 o Video for Insurance Company Executives/Underwriters o Support for Butte County Fire Safe Council to increase Firewise Communities

RECOVERY
Community Development Block Grant Disaster Recovery Mitigation Planning Public Services (CDBG DR MIT PPS)
 Long Term Community Recovery Plan Update
o Council approved selection of UDA to conduct the update and draft the plan. o Economic Development Policies and programs are being developed with the public finance consultant Wildan.
 In Home Siren Units
o The Standard Agreement for funding for additional in-home siren units has been received, this will extend the number of units made available to residents with another 2,800 units available.
o Residents have begun receiving units from the FEMA funded grant, which are located at Town Hall for pickup.
 Public Services
o Staff is working with HCD on the application for groups to become subrecipients to do mitigation work in Paradise.
o Applications are expected to be released in summer 2026.

Office of Land Use and Climate Innovation Grant
 Town was awarded $739,680 through the Extreme Heat and Community Resilience Program
 Funding will be used to create a Climate Resilience Plan which will identify prospective resiliency projects such as
o Community Evacuation/Cooling/Heating Centers
o Shade Tree Planting
o Fuels Reduction Projects
o Green space projects
 Identified projects may be eligible for future implementation funds through the same grant source.
 Public input will be gathered over the summer at community events.

Overall Hazard Mitigation Project Update
Years of efforts are complete on the pre-award work on all our projects. All projects are fully approved and funded.

Category 4 Tree Removal Program
 Project implementation is complete.
 As of October, approximately 9.000 trees have been removed from 350+ parcels. 7-10 different tree removal crews are working across town in an efficient and effective partnership with property owners, local agencies, tribes, and contractors.  Final wrap up and closeout is ongoing and a full report on the project will be provided to Council when complete.

Emergency Warning System
7  All 21 Towers are standing and operational.
 All active construction is complete.
 EWS Project has begun the closeout process.
 In-Home Safe Units are now available for pickup at Town Hall for Paradise residents.

Approximately 420 units have been distributed to the public.  Full grant closeout and documentation have been provided to CalOES as of March 2026.

Residential Ignition Resistant Retrofit Program
 Project is fully funded and moving forward.
 All properties have been approved by FEMA to move forward to construction  79 Properties are complete or in process. 17 Properties have not started retrofits. Town staff have followed up with these properties to alert them that they must begin work by June 15 and all work must be complete by September 15 in order to remain in the program.
 Staff are working with California officials on a future retrofit program modeled after this program for additional homes utilizing Prop 4 funds. More information should be available toward the end of 2026.

Hazardous Fuels Reduction Program
 Project is fully funded and moving forward.
 Town staff are working with the contractor on implementation.

Defensible Space Code Enforcement
 The Defensible Space Code Enforcement project was fully approved and obligated in November 2023 by FEMA and CalOES.
 Town Council approved implementation plan in January 2024.  Grant funded staff have been hired and are in place and working in the community.  Funding for current grant will expire at the end of September 2026. In May a Notice of Intent was submitted to CalOES to request an additional 3 years of funding for this program. NOI was accepted and a full application was submitted in September. As of March 2026, CalOES has submitted project to FEMA for consideration.  Additional funding sources are being pursued by Town staff for 2026-27 gap funding.

EMERGENCY MANAGEMENT
 The Town continues to work with Butte County to fully establish Smart911 as the replacement for CodeRed.
 Implementation for VEOCI, our online EOC software, is ongoing.

Financial Impact:

None.
8 Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 1(f)
ORIGINATED BY: Sarah Richter, Housing Program Coordinator REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Housing Recovery Update

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. None.

Background:

This report provides the Town Council with an update of Housing Activities.

Analysis:

We have 43.28% of our pre-disaster housing stock to-date (1,720 surviving units + 3,946 new CofOs [an increase of 62 since last month] to-date = 5,666 habitable dwellings / 13,091 housing units before the Camp Fire). Our total number of habitable dwellings does not include the number of mobile homes replaced in mobile home parks because those permits are issued by HCD instead of the Building Dept., but mobile homes in parks are included in the total number of prefire housing units. An estimate from tax data shows 144 mobile homes in parks, or 5,810 housing units in Paradise.

Town of Paradise Owner-Occupied Rehabilitation/Reconstruction Program ($12.5 million) This program helps homeowners rehabilitate or reconstruct their home. The CalHome-Disaster Assistance grant was set to expire at the end of 2025, but the Housing Department was granted a one-year extension to finish homes under construction. New applications to rebuild homes lost in the Camp Fire are no longer being accepted because it’s not feasible to complete a project before the expiration of the grant. Applications for essential home repairs on existing homes will continue to be accepted, funds for this activity are limited but do not have an expiration deadline.  73 homes completed
 5 homes in construction
 0 applications in process
Town of Paradise First-Time Homebuyer Program ($11 million) Helping to make homeownership more affordable. Applicants who were Disaster Affected can qualify under higher income limits, using 120% of Area Median Income (AMI). Other funding remains available to assist non-disaster affected households earning no more than 80% AMI.

Since resuming the first-time homebuyer program in 2022, 337 people have completed the Town’s first-time homebuyer workshop.
 105 households assisted
 17 applications in process
9 CDBG-DR Multifamily Rental Housing Program ($84.7 million) Affordable rental housing. Seven (7) projects are eligible for funding; a total of 292 units.  CHIP project- scattered site (4 units)
o Leased up in Spring of 2024
 Eaglepointe- 5975 Maxwell Dr (43 units)
o Leased up in Spring of 2025
 Mayer Commons- 1561 Kay Ct (12 units)
o Construction completed. Has one unit still available. For leasing information contact RSC Associates Property Management Inc.
 Northwind Senior- 6983 Pentz Rd (21 units)
o Leased up in Fall of 2025
 Cypress Family- 1633 Cypress Ln (70 units)
o Construction completed and Certificates of Occupancy were issued in December.

Ribbon cutting was April 10th, 2026, and is 100% leased as of April 30th.  Clark Rd- 6480 Clark Rd (72 units)
o Construction is underway starting with land clearing and grading.  Cypress Senior (phase II)- 1633 Cypress ln (70 units) o Groundbreaking was on April 10th and construction has begun.

CDBG (2025 Annual Allocation=$47,069)
CDBG entitlement grants are on a 5-year plan cycle called the Consolidated Plan, and this year is the 1st year in the current plan. The Annual Action Plan for the 2026/2027 program year has been submitted to HUD for approval. If the plan is approved by HUD, the Town will receive an allocation for 2026 for $54,430.

HOME Infill New Construction ($700,000)
Create affordable housing for first-time homebuyers. The grant award letter was finally received from HCD in April of 2025. Program guidelines are complete and were adopted by Council. Staff is continuing to work-out funding logistics with HCD. A Tier 1 Environmental Review was completed and a request for release of funds submitted to HCD.

Permanent Local Housing Allocation (PLHA) ($540,905)
Allocates matching funds to North Valley Housing Trust to administer for affordable housing projects.
 A predevelopment loan of $400,000 has been made for the Cape Cod multi-family project ($200,000 of PLHA funds). Construction began earlier this year.  $75,000 of PLHA funds was loaned to build a small, single-family home, which was finished and sold to a low-income Camp Fire survivor.
 $112,000 has been committed to North Valley Housing Trust for another single-family residence development on Cottage Ln., construction to begin this spring.  PLHA operates on a 5-year funding cycle similar to CDBG. The NOFA for the next cycle is expected in the second quarter of 2026. PLHA allocates grant funds to CDBG entitlement cities, which the Housing staff will apply for, but will not have to compete with other communities to receive.

Financial Impact:

None.
10 1

TOWN OF PARADISE
Council Agenda Summary
Date: June 9, 2026
Agenda No. 1(f)
ORIGINATED BY: Marc Mattox, Public Works Director / Town Engineer REVIEWED BY: Jennifer Macarthy, Town Manager

SUBJECT: Camp Fire Recovery Updates - Infrastructure
COUNCIL ACTION REQUESTED:

1. None, written monthly update only.

Background:

This report continues the Monthly Disaster Recovery Updates provided to keep the Town Council apprised of important developments related to the recovery of the Town of Paradise from the Camp Fire. Changes from the prior month’s reports are shown in red underline italics.

Analysis:

Road Rehabilitation
The Town of Paradise is endeavoring to pave nearly every public road mile by the end of 2026.

These projects are funded through Camp Fire Recovery Projects and are sequenced behind undergrounding of utilities and water service later replacements.

As of February 2026, the following paving progress can be reported:

Status Miles
Completed 72.10
Awarded/In-Progress 17.62
Planned Future 6.48
Total 96.19

On February 10, 2026, Paradise Town Council awarded two contracts to Knife River Construction for various roadway rehabilitation efforts scheduled for 2026.

Knife River Construction has started significant construction activities in various neighborhoods in Paradise. Work in general has involved roadway preparation including pulverization and grading. Paving operations will be occurring in the next few weeks.

Additional work is planned later this summer including night work along the Skyway corridor between Manchester Way and Bille Road, Upper Skyway, Upper Clark in addition to Elliott Road between Skyway and Clark Road.

The active construction map with current information can be found on the next page and at www.paradiseworks.com
11 2
A map of all paving efforts completed and planned can be found on the Town’s website at www.townofparadise.com by visiting “News and Announcements” from the homepage.

Capital Project Updates
The Public Works Department, in an effort to provide additional communications on various projects, has launched a new website under its ParadiseWORKS banner. ParadiseWORKS Engineering Resiliency now hosts individual project pages for current information, project descriptions and schedules. The website can be viewed here:
https://www.townofparadise.com/pwe/page/paradiseworks-engineering-resiliency Below is an abbreviated Project List intended to show the current status of each project. More information on each project’s scope and schedule can be found at. Typical project progressions and timeframes are as follows:
(1) Environmental, 6-24 months
(2) Design, 12 months
(3) Right of Way, 6-12 months
(4) Construction, 6-24 months
12 3
Project ID Project Title Project Phase
Anticipated
Construction
Completion Year
7303 On-System Road Rehabilitation Construction 2026
7307 Neal Road Rehabilitation Design 2028
8407 Off-System Road Rehabilitation Construction 2026
9389 Pentz Pathway Project Phase II Design 2029
9390 Paradise ATP Gateway Project (Neal Road Class I) Environmental 2028 9394 Paradise Sewer Project Environmental -
9424 Skyway Link ATP (Bille to Wagstaff) Environmental 2028 9425 Upper Skyway Widening (Bille to Wagstaff) Environmental 2028 9426 Skyway/Pentz Intersection Improvements Right of Way 2028 9427 Pentz Road Widening Environmental 2029
9428 Roe Road Phase 1 (Edgewood to S. Libby) Environmental 2029 9434 Roe Road Phase 2 (S. Libby to Clark) Environmental 2029 9438 Private Road Identification Safety Project Design 2027 9439 Storm Drain Resiliency Project Phase 1 Environmental 2028 9440 Storm Drain Resiliency Project Phase 2 Environmental 2028 Funding Pursuits
Below is a listing of active funding pursuits related to infrastructure recovery and status updates:

Program Project Title Amount
Requested
Anticipated
Award
Notification
Notes
US Army Corps
of Engineers
Paradise
Sewer Project
$2,000,000 of
$50,000,000
authorization
TBD
Town of Paradise has
submitted its required Letter of
Intent to the USACE and
Community Directed Spending
Requests to Senators Padilla
and Schiff. This request will be
pending federal budget
appropriations for Fiscal Year
2027.

CDBG-DR
Infrastructure
Paradise
Sewer Project $21,487,279 May 2026
The Town of Paradise has
received award notification for
these funds (an increase from
$13.5M to $21.49M)
State Water
Board Septic to
Sewer CWSRF
Paradise
Sewer Project $27,000,000 TBD
Work to revise the project
application package is
resuming with new project
direction selected.
13 4
Active
Transportation
Project Cycle 8
Oliver Curve
Pathway $13,000,000 TBD Application is due in June 2026 14 1

TOWN OF PARADISE
Council Agenda Summary
Date: June 9, 2026
Agenda No. 1(g)
ORIGINATED BY: Marc Mattox, Assistant Town Manager, Public Works Director / Town Engineer
REVIEWED BY: Jennifer Macarthy, Town Manager

SUBJECT: Paradise Sewer Project Update
COUNCIL ACTION REQUESTED:

1. None, written monthly update only.

Background:

This report is a monthly effort to provide additional opportunity for public engagement on the status and next steps of the Paradise Sewer Project.

Analysis:

Since its incorporation in 1979, the Town of Paradise has sought a centralized wastewater system to address failing septic systems that impact public health, groundwater quality, and economic development. The need for sewer service became even more urgent following the 2018 Camp Fire, when the lack of modern wastewater infrastructure emerged as a major barrier to rebuilding businesses, housing, and community resiliency.

In 2022, the Town secured $30 million in CDBG-DR funds to begin pre-construction work, including environmental review, design, and permitting. To provide technical expertise, HDR was retained as Owner’s Agent, and a progressive design-build team was selected to develop a Basis of Design Report. That effort confirmed that a locally managed, phased sewer project was necessary to achieve both affordability and long-term community needs.

In January 2025, the Town Council formed a Sewer Project Ad Hoc Committee to evaluate local treatment and collection alternatives, with strong emphasis on public engagement and cost feasibility. The Committee, working alongside staff, HDR, and the Paradise Irrigation District, conducted community meetings, stakeholder workshops, site tours of other wastewater systems, and a technical alternatives analysis.

In August 2025, the Town Council unanimously voted to concur with the Paradise Sewer Project Ad Hoc Committee’s recommendation to direct a revised project description to include hybrid gravity/low pressure collection system, aerated lagoon wastewater treatment, and percolation/ evaporation pond effluent discharge.

Additional updates and project direction will be presented and requested in a separate item under the Agenda for this Town Council meeting.

Main Accomplishments
 Ongoing field topographic survey for Collection System.  Collection System Hydraulic Model workshop.
15 2
 Completed initial subsurface investigations at potential WWTF site.  Evaluated community proposal consideration for full STEP collection system, Membrane Bioreactor treatment and beneficial reuse alternative in parallel to ongoing work as directed by Council.
 Ongoing AB52 Tribal consultations.

Key Activities (One Month Look-Ahead)
 Complete field topographic survey for Phase 1 collection system.  Lateral sewer connections workshop.
 Ongoing evaluation of potential WWTF alternative sites.  Coordinate with the Central Valley Regional Water Quality Control Board about WWTF discharge permitting requirements
 Ongoing preliminary design of Collection System and WWTF.  Resume development of the Subsequent EIR.
16 MINUTES

PARADISE TOWN COUNCIL
SPECIAL MEETING – 5:15 PM – May 12, 2026

1. OPENING
The Special meeting of the Paradise Town Council was called to order by Mayor Crowder at 5:15 p.m. in the Council Chambers located at 5555 Skyway, Paradise, California who led the Pledge of Allegiance to the Flag of the United States of America.

COUNCIL MEMBERS PRESENT: Greg Bolin, Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde, and Steve Crowder, Mayor.

COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Interim Town Manager Michael O’Brien, Town Attorney Scott E.

Huber, Town Clerk/Elections Official Melanie Elvis, Assistant Town Manager Marc Mattox, Police Chief Eric Reinbold, Community Development Director Tony Lindsey, and Information Systems Director Luis Marquez.

At 5:15 p.m. Mayor Crowder announced that the Town Council would adjourn to Closed Session for the following items:

2. CLOSED SESSION
2a. Pursuant to Government Code section 54956.8, the Council will meet with Real Property Negotiators, Town Manager and Town Attorney, regarding the following properties: APN. 050-082-091, 053-250-056, 050-171-033, 053-250-038, 050-082-073, 053-240-040, 053-240-030, 053-240-039, 053- 250-058, 053-250-070, 050-171-012, 050-171-017, 053-250-127, 053-240- 029, 050-140-080, 050-171-013, 050-171-038, 050-082-088, 053-250-093, 050-171-032, 053-340-102, 050-171-037, 050-171-019, 050-140-163. The negotiators for the property owner(s) are unknown at this time. 2b. Pursuant to Government Code section 54956.8, the Council will meet with Real Property Negotiators, Town Manager and Town Attorney, regarding the following properties: APN 066-460-014. The negotiators for the property owner(s) are unknown at this time.
2c. Pursuant to Government Code section 54956.8, the Council will meet with Real Property Negotiators, Town Manager and Town Attorney, regarding the following properties: APN: TBD. The negotiators for the property owner(s) are unknown at this time and TBD.
17 After reconvening from Closed Session at 6:00 p.m. Mayor Crowder announced that direction was given; no reportable action was taken.

3. ADJOURNMENT
Mayor Crowder adjourned the Council meeting at 6:00 p.m.

Date approved:

By: Attest:
___________________________ ________________________
Steve Crowder, Mayor Melanie Elvis, Town Clerk
18 TOWN COUNCIL
Meeting Minutes
6:00 PM – May 12, 2026

1. OPENING
The Regular meeting of the Paradise Town Council was called to order by Mayor Crowder at 6:02 p.m. in the Town Council Chamber located at 5555 Skyway, Paradise, California who led the Pledge of Allegiance to the Flag of the United States of America. An invocation was offered by Council Member Lassonde.

COUNCIL MEMBERS PRESENT: Greg Bolin, Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde and Steve Crowder, Mayor
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Interim Town Manager Michael O’Brien, Town Attorney Scott E.

Huber, Town Clerk/Elections Official Melanie Elvis, Community Development Director Susan Hartman, Community Development Director Tony Lindsey, Assistant Town Manager Marc Mattox, Recovery and Economic Development Director Colette Curtis, Human Resources & Risk Management Director Crystal Peters, Police Chief Eric Reinbold, Finance Director, Aimee Beleu and Information Systems Director, Luis Marquez.
1e. Mayor Crowder presented a proclamation recognizing Michael O’Brien for his exemplary service as Interim Town Manager. (180-40-027) 1f. Camp Fire Recovery Updates. Written reports were included in the agenda:

Colette Curtis, Recovery and Economic Development Director - recovery projects, advocacy, economic recovery and development, communications, emergency operations and Housing updates. Marc Mattox, Assistant Town Manager -infrastructure and sewer updates. (110-60-062) 1g. Assistant Town Manager Marc Mattox provided an update on the Paradise Sewer Project. (960-70-009)

1. Cliff Jacobson spoke in favor of the step system as a wastewater collection system.

2. Leslie Sawyer spoke in opposition to the proposed wastewater treatment site on Clark Road.

3. Kathy Dysert voiced concerns about the sewer rates putting non-profits out of business.

4. Jon Remalia spoke on low-income residents in Paradise and the potential sewer rate costs.
19 5. Fred Abler voiced concerns about the operation and maintenance costs for the sewer system, although spoke in favor of the project.

6. Jennifer Eidson asked if residents will have to pay for a sewer they will not use.

2. CONSENT CALENDAR

MOTION by Bolin, seconded by Lassonde, approved consent calendar items 2a and 2g. Roll call vote was unanimous.
2a. Approved minutes of the April 14, 2026, Special and Regular Town Council meetings.
2b. Approved April 2026 Cash Disbursements in the amount of $11,568,920.56. (310-10-035)
2c. 1. Declared the attached described 61 four-drawer file cabinets from the Community Development Department as surplus property; and 2. Adopted Resolution No. 2026-27, “A Resolution of the Town Council of the Town of Paradise declaring specific Town property, as surplus property and authorizing disposal in accordance with Town policies and applicable regulations.” (380-10-003)
2d. Reviewed and filed the 3rd Quarter Investment Report for the Fiscal Year Ending June 30, 2026. (360-30-006)
2e. Adopted Resolution No. 2026-28, "A Resolution of the Town Council of the Town of Paradise acknowledging receipt of a report made by the Fire Chief of the Paradise Fire Department regarding the inspection of certain occupancies required to perform annual inspections in such occupancies pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code." (440-50-001)
2f. 1. Waived the second reading of Town Ordinance No. 655 and read by title only; and 2. Adopted Town Ordinance No. 655, “An Ordinance of the Town of Paradise Adopting New Section 15.02.065 and Making Findings of Facts Relating to Building Code Complaints and Establishing Oversight by the Building Division Corrective Action Plan Ad Hoc Advisory Committee. (540- 16-224)
2g. Declared the police canine, Titan, surplus property and approved the Agreement to Release Police Service Dog. (380-10-003) (510-20-507)

3. ITEMS REMOVED FROM CONSENT CALENDAR - None

4. PUBLIC COMMUNICATION

1. Ken Klassen spoke in favor of AB2700 and the rally in Sacramento scheduled for Wednesday, March 13th.
20 2. Jon Remalia spoke on the 10-day citation appeal process and thought it causes undue burden on those filing appeals.

3. Jennifer Eidson asked why the last few Planning Commission meetings have been cancelled.

4. Mike Pollak requested a response from Council on the determination of his citations.

5. Carrie Max asked about the march in Sacramento in support of AB2700.

6. Ed Pallat spoke on his concerns about the use of glyphosate weed killer and its effect on wildlife.

5. PUBLIC HEARINGS
5a. Police Chief Eric Reinbold provided an overview of the proposed Ordinance relating to military equipment, and the 2025-2026 military equipment use report and policy.

Mayor Crowder opened the public hearing at 7:12 p.m.

There were no public comments.

Mayor Crowder closed the public hearing at 7:12 p.m.

MOTION by Bolin, seconded by Culleton 1. Waived the second reading of the Town of Paradise Ordinance No. 654 and read by title only; and,

2. Adopted Town of Paradise Ordinance No. 654 “An Ordinance of the Town Council of the Town of Paradise Renewing Section 9.70 to the Paradise Municipal Code Relating to Miliary Equipment Use”. Roll call vote was unanimous. (540-16-223) (480-05-013)

6. COUNCIL CONSIDERATION
6a. Town Clerk/Elections Official Melanie Elvis provided an overview of resolutions to request a consolidated general election with the county and to adopt regulations pertaining to candidate statements in the voter guide.

MOTION by Bolin, seconded by Lassonde 1. Adopted Resolution No. 2026-29, “A Resolution of the Town Council of the Town of Paradise Calling and Giving Notice for the Holding of a General Municipal Election to be Held on November 3, 2026, for the Election of Certain Officers as Required by the Provisions of the Laws of the State of California Relating to the General Law Cities for the Election of Two Town Council Members” and, 2. Adopted Resolution No. 2026-30, “A Resolution of the Town Council of the Town of Paradise Requesting the Board of Supervisors of the County of Butte to Consolidate a General Municipal Election to be Held on November 3, 2026 with the Statewide General Election to be Held on that Date for the Election 21 of Two (2) Town Council Members” and, 3. Adopted Resolution No. 2026- 31, “A Resolution of the Town Council of the Town of Paradise Adopting Regulations for Candidate for Elective Office Pertaining to Candidate Statements Submitted to the Voters at a General or Special Municipal Election”. Roll call vote was unanimous. (530-10-069)
6b. Human Resources and Risk Management Director Crystal Peters provided an overview of the proposed employment agreement with Jennifer Macarthy.

MOTION by Culleton, seconded by Lange, approved the Employment Agreement with Jennifer Macarthy for the Town Manager position. Roll call vote was unanimous. (510-20-506)
6c. Police Chief Eric Reinbold provided an overview of the proposed public safety recruitment incentives program extension.

MOTION by Bolin, seconded by Culleton authorized an extension of the Public Safety Recruitment Incentives program effective June 30, 2026, through June 30, 2028. Roll call vote was unanimous. (650-60-011) 6d. Council Member Culleton rescued himself from item 6d due to a potential conflict of interest.

Recovery & Economic Development Director Colette Curtis provided an overview of the proposed TOT Community Reinvestment Program for FY 26/27.

1. Monica Nolan spoke in favor of this item.

MOTION by Lange, seconded by Lassonde 1. Approved the proposed program with an annual budget of $140,000, with $100,000 to be distributed to the Paradise Ridge Chamber of Commerce, and the remaining $40,000 to be divided between other qualifying applicants based on their operating budget. The program will be reviewed after one year. Roll call vote was unanimous with Council Member Culleton absent and not voting. (395-70-008) 6e. Recovery & Economic Development Director Colette Curtis and UDA consultant Barry Long provided an overview of the Findings for Implementation for Downtown Paradise Planning.

1. Fred Abler thought the new downtown should be off Black Olive where the old Safeway was located.

2. Jon Remalia thought that more work should be done to build up the businesses that are currently in town rather than bringing in more people.

3. Adam Deppe asked how the Town could make it easier for businesses to open.
22 MOTION by Bolin, seconded by Lange 1. Reviewed the Findings for Implementation for Downtown Paradise Planning, provided by Urban Design Associates (UDA); and 2. Accepted the document as complete. Roll call vote was unanimous. (710-80-013)
6f. Assistant Town Manger Marc Mattox provided an overview of the recommendations to the current committee list.

MOTION by Lassonde, seconded by Lange

1. Approved Committee Changes:
a. Sunsetting the Onsite Ad Hoc Committee, Downtown Phase 3 Working Group, and Legislative Committees;
b. Renamed the Building Committee to the Building Division Corrective Action Plan Ad Hoc Committee;
c. Renamed the Solid Waste Committee to the NRWS Franchise Agreement Committee;

2. Approved Conversion to Standing Committees:
a. NRWS Franchise Agreement Committee (bi-annual)
b. Economic Development Committee (quarterly)
c. Insurance Committee (quarterly)
d. Healthcare Committee (quarterly);

3. Approved Legislative Representation Model: Designate two Council Members for legislative affairs (Note: The Mayor and Vice Mayor would no longer be automatically designated as the representatives, but rather the representatives would be appointed via the full Council);

4. Approved Governance Updates: Adopt revisions in the Committee Inventory, including administrative roles, purpose statements, and ongoing review of sunset triggers as well as establishing standardized questions for creation of new committees;

5. Approved Monthly Reporting: Request Council Members to submit brief monthly written updates for inclusion in Council agenda; and,

6. Adopted Resolution No. 2026-32 "A Resolution of the Town Council of the Town of Paradise Approving Updates to the Town's Committee Structure, Governance, Framework, and Reporting Practices". Roll call vote was unanimous. (120-10-003)
6g. Assistant Town Manger Marc Mattox provided an overview of the CEQA Notice of Exemption for the Private Road Identification Safety Project.

MOTION by Bolin, seconded by Lange 1. Concurred with staff recommendation to file a CEQA Notice of Exemption for the Private Road Identification Safety Project; and, 2. Adopted Resolution No. 2026-33, “A 23 Resolution of the Town Council of the Town of Paradise approving the design exception for the Private Road Identification Safety Project.” AYES:

Greg Bolin, Heidi Lange, Ronald Lassonde and Mayor Steve Crowder NOES: Steve “Woody” Culleton; ABSENT: None; ABSTAIN: None. Motion Passes. (950-40-079)
6h. Assistant Town Manger Marc Mattox provided an overview of the current Hazardous Fuels Reduction Program.

1. Adam Deppe asked that after the Town clear the hazardous fuels, they implement a program to help beautify the roadways.

2. Chayce Cassani, the owner of Arbor Pros asked for direction on how they should approach fuels in the right-of-way.

Council provided policy direction to staff regarding implementation of the Hazardous Fuels Reduction Program within the public right-of-way, including: 1. Clarification of vegetation management standards for hazardous fuels to be determined at the Public Works Director’s discretion; 2. Direction on the treatment of resident-installed landscaping to provide case-by-case reviews for the landscaping as long as it is maintained, and does not affect or impede town infrastructure such as roadways and drainages; and 3. Guidance on public communication and notification practices associated with the specific 2026 Hazardous Fuels Reduction Program implementation to include door hangers and at least a one week notice before work would begin. (440-60-022)

7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Council initiated agenda items
7a1. Council discussed the uses of adjacently owned lots. There was no Council consensus to move the item to Consideration.
7a2. Council discussed reviewing the fiscal sustainability model as it relates to staffing needs. Assistant Town Manager Marc Mattox will prepare an item for the June Council meeting to review the how staffing and the budget compares to the fiscal sustainability model projections. 7a3. Council discussed a potential Council-initiated ballot proposition to change the Mayor’s position from a Council-appointed role to a voter-elected office.

There was no Council consensus to move the item to Consideration. 7a4. Council approved a letter of support in favor of AB2700. 7b. Council reports on committee representation:

Council Member Bolin attended the monthly LAFCo meeting and Facilities Ad Hoc Committee meeting.

Council Member Lange attended several sewer committee meetings. 24 Council Member Lassonde attended the monthly BCAG and BCAQM meetings.

Council Member Culleton attended Wildfire Preparedness Week.

Mayor Crowder attended several sewer committee meetings. 7c. Future Agenda Items

1. Discuss holding two Council meetings a month. (CULLETON)

2. Reconsider the Sewer Project. (CULLETON)

8. STAFF COMMUNICATION
8a. Interim Town Manager Michael O’Brien praised Jennifer Macarthy.

9. CLOSED SESSION - None

10. ADJOURNMENT
Mayor Crowder closed the meeting at 10:39 p.m.

Date approved:

By: Attest:
__________________________ __________________________
Steve Crowder, Mayor Melanie Elvis, Town Clerk
25 MINUTES

PARADISE TOWN COUNCIL
SPECIAL MEETING – 3:30 PM – May 14, 2026

1. OPENING
The Special meeting of the Paradise Town Council was called to order by Mayor Crowder at 3:34 p.m. in the Council Chambers located at 5555 Skyway, Paradise, California who led the Pledge of Allegiance to the Flag of the United States of America.

COUNCIL MEMBERS PRESENT: Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde, and Steve Crowder, Mayor.

COUNCIL MEMBERS ABSENT: Greg Bolin
STAFF PRESENT: Interim Town Manager Michael O’Brien, Town Clerk/Elections Official Melanie Elvis, Assistant Town Manager Marc Mattox, Recovery & Economic Development Director Colette Curtis, Police Chief Eric Reinbold, Community Development Director Tony Lindsey, Fire Chief Garrett Sjolund, and Information Systems Technician Travis Thompson.

2. ITEMS
2a. Mayor Crowder presented a proclamation to Jill LaMalfa honoring the late Congressman LaMalfa for his tireless support of the Town of Paradise.

1. Jill LaMalfa accepted the proclamation and thanked Council for the honor.

2. Assemblyman James Gallagher praised Congressman LaMalfa for his commitment to Paradise after the fire.

3. ADJOURNMENT
Mayor Crowder adjourned the Council meeting at 3:46 p.m.

Date approved:

By: Attest:
__________________________ _______________________
Steve Crowder, Mayor Melanie Elvis, Town Clerk
26 TOWN OF PARADISE

CASH DISBURSEMENTS REPORT

FOR THE PERIOD OF
May 1, 2026 - May 31, 2026
27 CASH DISBURSEMENTS REPORT
May 1, 2026 - May 31, 2026
Check Date Pay Period End Description Amount Total
5/8/2026 5/3/2026 Net Payroll - Direct Deposits and Checks $ 279,979.37 5/22/2026 5/17/2026 Net Payroll - Direct Deposits and Checks $ 281,999.44 $ 561,978.81
Accounts Payable
Payroll Vendors: Taxes, PERS, Dues, Insurance, Etc. $ 508,290.39 Operations Vendors: Supplies, Contracts, Utilities, Etc. $4,657,086.30 TOTAL CASH DISBURSEMENTS ACCOUNTS PAYABLE $ 5,165,376.69 GRAND TOTAL CASH DISBURSEMENTS $ 5,727,355.50
APPROVED BY:

Aimee Beleu - Finance Director/Town Treasurer
APPROVED BY:

Jennifer Macarthy - Town Manager
28 29
30 31
32 33
34 Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 2(c)
ORIGINATED BY: Jason Finney - Fire Chief
REVIEWED BY: Jennifer Macarthy – Town Manager
Scott Huber – Town Attorney
SUBJECT: Surplus of Fire Department Equipment

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Declare outdated and unserviceable fire hose as surplus property; and,

2. Adopt Resolution No. 2026-____, "A Resolution of the Town Council of the Town of Paradise declaring certain town property to be surplus and authorizing disposal in accordance with Town policies and applicable regulations." (Jason Finney/ Fire Chief)
Background:

The Paradise Fire Department maintains an inventory of fire hose utilized for structural firefighting, wildland firefighting, training, and emergency operations. Over time, fire hose experiences wear and degradation due to operational use, exposure to heat, ultraviolet light, chemicals, abrasion, and repeated pressure testing.

As part of the department’s annual equipment inspection and maintenance program, a quantity of older fire hose has been identified as no longer suitable for emergency service operations. The hose has either failed testing requirements, exceeded recommended service life expectations, or no longer meets current operational standards and best practices for firefighter safety.

The Fire Department is requesting authorization from the Town Council to declare the identified hose surplus and approve its removal from frontline service and disposal.

Analysis:

The Paradise Fire Department follows industry standards and nationally recognized best practices regarding the inspection, testing, maintenance, and retirement of fire hose. Specifically, the department references standards established by the National Fire Protection Association (NFPA), including:
 NFPA 1962 – Standard for the Inspection, Care, and Use of Fire Hose, Couplings, and Nozzles
 NFPA 1851 – Standard on Selection, Care, and Maintenance of Protective Ensembles for Structural Fire Fighting and Proximity Fire Fighting (general equipment management practices)
35 NFPA 1962 requires that fire hose be inspected regularly and hydrostatically tested at least annually.

Hose that fails pressure testing, shows signs of damage, or demonstrates diminished reliability is required to be removed from service. The standard further recognizes that fire hose has a finite service life and should be retired when it can no longer safely perform under emergency conditions.

Best practices within the fire service support proactive replacement and disposal of aging hose to reduce the risk of hose failure during fire suppression activities. Hose failure during emergency operations can result in:
 Loss of water supply to firefighters operating inside structures or in wildfire environments;  Increased safety hazards to emergency personnel;
 Delays in fire suppression efforts;
 Increased property loss and operational risk.

The hose identified for surplus is between 15-20 years old and has been evaluated by department personnel and determined to be unsuitable for continued emergency response use. The hose will be disposed of in accordance with Town of Paradise surplus property procedures.

Financial Impact:

There is no financial impact associated with declaring the hose surplus. 36 1

TOWN OF PARADISE
RESOLUTION NO. 2026-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE

DECLARING CERTAIN TOWN PROPERTY TO BE SURPLUS

AND AUTHORIZING DISPOSAL IN ACCORDANCE WITH TOWN POLICIES AND APPLICABLE REGULATIONS.

WHEREAS, the Town of Paradise wishes to dispose of certain equipment from the Fire Department through public auction, internet sale, salvage or other legal method that is no longer functional or necessary to the Town’s operations.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

Section 1. The Town hereby declares Fire Department property surplus as set forth in “Exhibit A" attached hereto and made a part hereof by reference.

Section 2. Pursuant to Paradise Municipal Code Section 2.45.130, the Town Manager is hereby authorized to dispose of the property set forth in Section 1 through public auction, internet, sale, salvage, donation or other legal method.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 9 th day of
June, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By: ________________________________
Steve Crowder, Mayor
ATTEST:

Melanie Elvis, Town Clerk
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
37 TOWN OF PARADISE
RESOLUTION NO. 2026-___
2 “Exhibit A”
Miscellaneous Items:

Item Quantity Description Surplus ✔️ Destroy ✔️ Condition 3” Fire Hose 1000’ Supply hose greater than 15 years old X X OOS

1.75” Fire
Hose 800’ Attack hose greater than 15 years old X X OOS 38 Town of Paradise
Council Agenda Summary
Date: June 09, 2026
Agenda Item: 2(d)
ORIGINATED BY: Louis Johnson, Supervising Project Manager REVIEWED BY: Jennifer Macarthy
SUBJECT: Skyway Widening and Skyway Link Improvement
Projects; CEQA Determination

LONG TERM
RECOVERY PLAN:

Skyway Widening: Tier 1, Evacuation Routes
Skyway Link: Tier 1, Interconnected Path System
COUNCIL ACTION REQUESTED:

1. Concur with staff recommendation to file a CEQA Notice of Exemption for the Skyway Widening (CIP 9425) and Skyway Link (CIP 9424) Improvement Projects.

Background:

In general, the existing Skyway corridor from Bille Road to Wagstaff Road consists of two 12-foot vehicular travel lanes with 2-foot wide paved shoulders and no sidewalks or bike lanes. The Town of Paradise Long-Term Community Recovery Plan (November 2022) identifies the Skyway Widening Project from Bille Road to Wagstaff Road (CIP 9425) as a Tier 1 safety project in the Evacuation Routes category. The Skyway Link Project, which adds pathways along Skyway, meets a Tier 1 safety priority goal under the Interconnected Path System category. Since the Skyway Widening (CIP 9425) and Skyway Link (CIP 9424) Improvement Projects (Projects) cover the same segment of Skyway, the Town is pursuing concurrent design, environmental clearance and construction of the Projects.

In 2022, the Town of Paradise was awarded grants of $199.5 million from the U.S. Department of Housing and Urban Development’s Community Development Block Grant – Disaster Recovery (CDBG-DR) program funding administered through California’s Housing and Community Development Department (HCD) as well as approximately $41 million from the California Transportation Commission’s 2023 Active Transportation Program (ATP). Two of the listed priority projects in the CDBG-DR Infrastructure Action Plan Amendment 1 are the Upper Skyway Widening Project and Skyway Link Project. .

The Upper Skyway Widening project will widen Upper Skyway from Bille Road to Wagstaff Road to include a 12-foot-wide center turn lane and widened shoulders. The Skyway Link Project will construct sidewalk infill totaling 2,000 feet and 3,165 feet of a paved Class I multiuse path along Skyway between Bille Road and Wagstaff Road as well as ADA ramp improvements.

CDBG-DR funds are secured for the Upper Skyway Widening Project and CDBG-DR funds and State ATP funds are secured for the Skyway Link Project. Both projects are funded with Federal funds and are subject to the Federal laws and regulations associated with the CDBG-DR program. 39 The Skyway Link project is also funded through the State ATP program and is subject to the State ATP regulations.

On September 19, 2024, the Town of Paradise issued a Notice to Proceed to Coastland | DCCM to perform civil engineering design and environmental services on the Projects. Area West Environmental, a subconsultant to Coastland | DCCM, is performing environmental review services and has prepared the attached Notice of Exemption (NOE). The environmental review and construction documents for the Projects are scheduled to be complete by Spring of 2027.

Bidding for construction could begin shortly thereafter depending on the disposition of right-ofway acquisition and environmental permitting efforts.

Analysis:

The current phase for this project is environmental review both under the National Environmental Policy Act (NEPA) and under the California Environmental Quality Act (CEQA). The US Department of Housing and Urban Development (HUD) is serving as the lead agency in the preparation of an Environmental Review for an Activity that is Categorically Exempt per 24 CFR

58.34(a)(12) for NEPA compliance.

The CEQA process requires the lead local agency to examine the project proposal and evaluate potential impacts. Staff has evaluated the subject project thoroughly and found that the project is exempt under State CEQA Guidelines Section (c), Existing Facilities which states:

The project is exempt under State CEQA Guidelines [Section 15301(c)], which states:
“Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The types of “existing facilities” itemized below are not intended to be all-inclusive of the types of projects which might fall within Class 1. The key consideration is whether the project involves negligible or no expansion of use. Examples include but are not limited to:

Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety), and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle-share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes.” Based on CEQA Section 15301(c), staff is requesting the Council to concur and approve for filing the Notice of Exemption with the Butte County Recorder’s Office and Office of Planning and Research.

A draft Notice of Exemption is attached to this staff report.

Financial Impact:

There is a recording fee of $50 per project with the Butte County Recorder’s Office to file the Notice of Exemption.

Attachments:

A. Project Map
B. CEQA Notice of Exemption
40 Figure 1. Project Vicinity
41 Figure 2. Project Location
42 1

NOTICE OF EXEMPTION
To: Office of Planning and Research
1400 Tenth Street
Sacramento, CA 95814
County Clerk-Recorder
Butte County
155 Nelson Avenue
Oroville, CA 95965
From: Public Works Department
Town of Paradise Posted:_______ through _______
5555 Skyway (date) (date)
Paradise, CA 95969
Project Title: Skyway Widening (CIP 9425) and Skyway Link (CIP 9424) Projects Project Location: Skyway, from Bille Road to Wagstaff Road. Town of Paradise, Butte County, CA. See attached project location map.

Assessor’s Parcel Number(s): Town Rights of Way & 051-163-031, 051-163-032 Project Description: The Town of Paradise proposes to construct a 12-foot-wide center turn lane, widen shoulders, infill sections of sidewalk, and add a Class I multi-use path along an approximately 0.84-mile portion of Skyway between Bille Road and Wagstaff Road in the Town of Paradise, Butte County, California. The Project would enhance emergency evacuation for the Town and increase connectivity for pedestrians.

Lead Agency: Town of Paradise
Applicant: Town of Paradise, 5555 Skyway, Paradise, CA 95969 Exemption Status: Ministerial [Section 21080(b); 15268]; Declared Emergency [Section 21080(b)(3); 15269(a)];
Emergency Project [Section 21080(b)(4); 15269(b)(c)];
General Rule [Section 15061(b)(3)];
Categorical Exemption [Section 15301(c), Existing Facilities]; Statutory Exemption [Section 15273(a)(4)].

REASONS WHY THIS PROJECT IS EXEMPT OR DOES NOT REQUIRE FURTHER ENVIRONMENTAL DOCUMENTATION:

Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety), and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle-share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes.” The Project would not result in the expansion of an existing use. The Project would not construct additional through lanes or increase capacity. The Project would not result in an exception to the exemption. No further environmental review is necessary for this project.

By __________________________________ Date ______________________ Louis Johnson, Supervising Project Manger
Town of Paradise

DATE RECEIVED FOR FILING
43 2

DECLARATION OF FEES DUE
(California Fish and Game Code Section 711.4)
NAME AND ADDRESS OF LEAD AGENCY/APPLICANT:

Town of Paradise
Public Works Department
5555 Skyway
Paradise, CA 95969
(530) 872-6291
Project: Skyway Widening (CIP 9425) and Skyway Link (CIP 9424) Projects
CLASSIFICATION OF ENVIRONMENTAL DOCUMENT:

1. NOTICE OF EXEMPTION/STATEMENT OF EXEMPTION
☒ A. Statutorily or Categorically Exempt
$50.00 (Fifty Dollars) Butte County Clerk's Filing Fee

2. NOTICE OF DETERMINATION - FEE REQUIRED
☐ A. Negative Declaration
$2,968.75 State Filing Fee
$50.00 Butte County Clerk's Filing Fee
☐ B. Mitigated Negative Declaration
$2,968.75 State Filing Fee
$50.00 Butte County Clerk's Filing Fee
☐ C. Environmental Impact Report
$4,123.50 State Filing Fee
$50.00 Butte County Clerk's Filing Fee

3. ☐ OTHER (Specify) General Rule Exemption
$50.00 Butte County Clerk's Filing Fee

THREE COPIES OF THIS FORM MUST BE COMPLETED AND SUBMITTED WITH ALL ENVIRONMENTAL DOCUMENTS FILED WITH THE BUTTE COUNTY CLERK'S OFFICE.

ALL APPLICABLE FEES MUST BE PAID AT THE TIME OF FILING ANY ENVIRONMENTAL DOCUMENTS WITH THE BUTTE COUNTY CLERK'S OFFICE.

THE $50.00 HANDLING FEE IS REQUIRED PER FILING IN ADDITION TO THE FILING FEE SPECIFIED IN FISH AND GAME CODE SECTION 711.4(d).

MAKE CHECKS PAYABLE TO COUNTY OF BUTTE.
44 Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 2(e)
ORIGINATED BY: Marc Mattox, Director of Public Works/Town Engineer
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: CDBG MIT-RIP Storm Drain Resiliency Project Phase 2 Authorizing Resolution

LONG TERM
RECOVERY PLAN:

Yes
COUNCIL ACTION REQUESTED:

1. Adopt Resolution No. 2026-_____ , “A Resolution of the Town Council of the Town of Paradise approving an application for funding and the execution of a grant agreement and any amendments thereto from the 2023-2024 funding year of the State CDBG Mitigation Resilience Infrastructure (MIT-RIP) program.” (Marc Mattox/Assistant Town Manager)
Background:

The Town has secured $10,273,223.81 in Community Development Block Grant Mitigation (CDBG MIT) Resilient Infrastructure Program (RIP) funding to assist with delivering infrastructure projects that address identified unmet 2018 disaster recovery needs and increase the resilience of cities and counties. The Storm Drain Resiliency Project Phase 1 was awarded $3,909,270.81 in CDBG MIT-RIP funds.

At the March 12, 2024 Town Council Meeting, council approved an application for funding and the execution of a grant agreement and any amendments thereto from the 2023-2024 funding year of the State CDBG Mitigation Resilience Infrastructure (MIT-RIP) program which included the Storm Drain Resiliency Project Phase 1.

On November 10, 2025 the Town of Paradise was given a preliminary award announcement for the Storm Drain Resiliency Project Phase 2 stating that it has been awarded $8,668,086.50 from the 2018 CDBG MIT-RIP program.

Analysis:

As a component of the application process for MIT-RIP, an authorizing resolution designating authority to submit applications and sign agreements is required, similar to the Town’s efforts through CDBG-DR infrastructure programs in 2022.

Engineering staff have prepared an application under the MIT-RIP program, including:
45 1. Storm Drain Resiliency Project Phase 2 - This grouping of projects includes the implementation of recommendations from the Town’s 2022 Storm Drain Master Plan.

Projects include new storm drain systems and upsizing of existing storm drain infrastructure to meet the new demands and increased flows observed.

For CDBG MIT-RIP, an authorizing resolution is required to be adopted by Paradise Town Council. The resolution is attached to this Agenda Summary for consideration.

Financial Impact:

There are no new financial impacts associated with this action item. These grant programs fund projects at 100% including project development costs.

Attachments:

A. Resolution
46 TOWN OF PARADISE
RESOLUTION NO. 2026-____

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE APPROVING

AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2023-2024 FUNDING YEAR OF THE STATE CDBG MITIGATION RESILIENCE INFRASTRUCTURE (MIT-RIP) PROGRAM.

WHEREAS, The Town Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $8,668,086.50 for the Storm Drain Resiliency Project Phase 2, pursuant to the 2017/18 CDBG MIT-PPS and MIT-RIP NOFA; and, WHEREAS, The Town Council hereby acknowledges compliance with all state and federal public participation requirements in the development of its application(s); and,
WHEREAS, The Town Council hereby authorizes and directs the Town Manager or designee Public Works Director/Town Engineer, to execute and deliver all applications and act on the behalf in all matters pertaining to all such applications; and,
WHEREAS, if an application is approved, Town Manager or designee Public Works Director/Town Engineer, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement) and any and all subsequent amendments thereto with the State of California for the purposes of the grant; and, WHEREAS, if an application is approved, Town Manager or designee Public Works Director/Town Engineer, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant; and, NOW, THEREFORE BE IT RESOLVED by the Town Council of the Town of Paradise, State of California, as follows:

1. Approve authorizing resolution for the Storm Drain Resiliency Project Phase 2 for the 2017/18 CDBG MIT-RIP program.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 9
th day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:
47 TOWN OF PARADISE
RESOLUTION NO. 2026-____
2 ABSTAIN:

By:

Steve Crowder, Mayor
ATTEST:

Melanie Elvis, Town Clerk
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
48 Town of Paradise
Council Agenda Summary
Date: June 09, 2026
Agenda Item: 5(a)
ORIGINATED BY: Crystal Peters, Human Resources & Risk
Management Director
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: AB 2561 VACANCY RATE REPORTING: ANNUAL
REPORT

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Conduct a public hearing and receive a report on the Town’s vacancies and recruitment and retention efforts, pursuant to Assembly Bill (AB) 2561.

Background:

In accordance with GC Section 3502.3 (Assembly Bill 2561), which was added in 2024 through Assembly Bill 2561, a public agency must once per fiscal year present the status of vacancies, recruitment and retentions efforts at a Public Hearing before the adoption of an annual budget. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the Town must, upon request of the recognized employee organization, include specified information during the public hearing. Specifically, the Town is required to highlight recruiting and retention efforts and disclose any specific barriers of which it is aware in reducing the number of vacant positions.

The Town of Paradise will hold a public hearing to present an overview of current job vacancies, recruitment efforts, and retention strategies. This presentation includes details regarding the number of open positions, steps taken to fill them, and potential areas for improvement.

Additionally, the Legislative Bill authorized recognizes bargaining units to be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.

Analysis:

Vacancies
Position vacancies may occur for various reasons throughout any given year, including internal promotions, retirements, resignations, terminations, or due to approval of a new position. When turnover occurs, a position needs assessment is completed with Town Management. The Town’s Human Resources Department works with the hiring manager to fill the position(s) to maintain operations; ensure continued quality, efficient services for the community; and to reduce the need for overtime.
49 The Town has conducted a review of the total staffing and vacancy rates, using the FY 25/26 budgeted positions. The current vacancy rate across the organization is 2.9%.

Vacancies by bargaining group as of May 28, 2026, are listed in the chart below.

Employee Bargaining Groups:

Positions
Budgeted
Positions
Vacant
Vacancy
Rate
General Employees Unit 45 1 2.2%
Confidential & Mid-Mgt Association 17 1 5.8%
Police Officers Association 26 1 3.8%
Police Management & Mid Management 3 0 0%
Management Group 8 0 0%
Unrepresented 4 0 0%
TOTAL / OVERALL 103 3 2.9%
Recruitment and Retention
The Town employs various recruitment strategies, including posting vacancies on the Town’s website, virtual job boards and industry-specific sites as appropriate, and advertising positions on the Town’s social media platforms. In FY25/26, the Town recruited for 10 positions.

The Town is committed to high quality and efficient recruitment processes designed to attract well-qualified candidates. Recruitments within the Town are ongoing and are in various stages of the recruitment and selection process. Staff continue to employ modern and efficient recruitment processes to fill vacant positions and will continue to review processes to look for ways to improve the effectiveness of the process.

In Fiscal Year 2025-2026, the Town adopted successor memoranda of understandings with its five bargaining units. Each of these contracts has a term of three years which provides labor stability for the Town workforce and attempts to remain competitive in the market.

The Town also employs various other strategies for retaining existing staff, including staff training and development, promotional avenues available at the Town and staff recognition. The Town prioritizes making staff feel appreciated, supported and valued in the organization.

Financial Impact:

There is no fiscal impact associated with this report.
50 Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 6(a)
ORIGINATED BY: Marc Mattox, Assistant Town Manager
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Annual Financial Health & Organizational Impact Report

LONG TERM
RECOVERY PLAN:

Yes – Fiscal Sustainability
COUNCIL ACTION REQUESTED:

1. Receive and file the Town's first Annual Financial Health & Organizational Impact Report. (ROLL CALL VOTE)
Background:

Since the 2018 Camp Fire, the Town of Paradise has undertaken one of the most significant municipal recovery efforts in California history. Recovery activities have included restoration of housing, rebuilding of public infrastructure, expansion of public safety services, implementation of wildfire resilience initiatives, administration of major state and federal grant programs, and establishment of long-term strategies intended to support financial sustainability and community recovery.

In 2023, the Town updated its Fiscal Sustainability Model (FSM) to evaluate long-term financial conditions and forecast recovery progress, revenue growth, service restoration, and utilization of Paradise Recovery & Operations (PRO) Fund resources. The model provided a planning framework intended to evaluate whether the Town's recovery strategy could successfully bridge the community from post-disaster recovery toward long-term fiscal sustainability.

As recovery efforts have continued to mature, staff prepared the Financial Health & Organizational Impact Report to evaluate actual performance against assumptions contained within the FSM while providing a comprehensive review of the Town's financial position, organizational growth, departmental performance, recovery investments, and long-term financial outlook.

Analysis:

Overall Financial Health
The report concludes that the Town's overall financial condition remains stronger than anticipated when the Fiscal Sustainability Model was developed. While annual population estimates remain below model projections, housing recovery, traditional revenue growth, investment performance, grant acquisition, infrastructure delivery, and organizational capacity have generally met or exceeded expectations.
51 As of March 2026, the Town maintained approximately $209 million in total financial resources consisting of invested PRO Fund assets, liquid cash, and pending reimbursements. Current financial resources exceed the Fiscal Sustainability Model's FY2025/26 projection by approximately $29 million.

Recovery Progress
Recovery indicators demonstrate substantial progress throughout the Town's post-Camp Fire recovery. The Town has restored approximately 5,822 housing units, issued 3,647 single-family rebuilding permits, secured approximately $437 million in external funding, and advanced a capital improvement and recovery project portfolio valued at approximately $364 million.

While California Department of Finance population estimates remain below projections contained within the Fiscal Sustainability Model, housing restoration activity has substantially tracked anticipated recovery assumptions. The report notes that future census efforts will provide a more complete understanding of long-term population recovery.

Department Performance
The report evaluates the operational impacts of recovery across all major departments, including Police, Fire, Community Development, Public Works, Recovery & Economic Development, Finance, Housing, and Central Services. The analysis demonstrates that recovery has affected every area of Town operations, resulting in expanded service responsibilities, increased project delivery, growth in regulatory and permitting activity, and substantially greater annual financial activity.

Several departments now administer programs and initiatives that did not exist prior to the Camp Fire, including affordable housing development, wildfire resilience programs, recovery grant administration, major infrastructure delivery, workforce development initiatives, and expanded emergency preparedness efforts. The report concludes that organizational growth has generally aligned with Council priorities and the operational demands associated with long-term community recovery.

Organizational Capacity
The report includes a department-by-department review comparing pre-fire and current staffing levels, operating budgets, service demands, and recovery-related responsibilities. The analysis demonstrates that while staffing increased from approximately 69 full-time equivalent positions to more than 100 positions, much of this growth reflects Council-directed investments in recovery, housing, grant administration, capital project delivery, fire prevention, code enforcement, economic development, and public safety functions that either did not exist or operated at substantially smaller scales prior to the Camp Fire.

The report also compares the Town's current organizational structure to both pre-fire and prerecession staffing levels, illustrating how the Town has rebuilt organizational capacity while remaining below the approximately 110 full-time equivalent positions included in the FY2008/09 budget.

In addition to staffing comparisons, the report evaluates how General Fund resources are 52 distributed across departments. Approximately 65 percent of General Fund expenditures support Police, Fire, and Animal Control services, demonstrating the Town's continued emphasis on public safety while balancing the organizational investments necessary to support long-term recovery, infrastructure delivery, community development, and financial management.

Fiscal Sustainability Model Comparison
The report compares actual outcomes to assumptions contained within the 2023 Fiscal Sustainability Model and concludes that overall recovery and financial performance have generally met or exceeded expectations.

Particularly notable findings include:
• Traditional revenues have generally performed in line with forecast assumptions; • Investment performance has substantially exceeded the model's assumed 1.5 percent return;
• Remaining financial resources exceed model projections; • Housing recovery has closely tracked forecast assumptions; and • Grant acquisition and reimbursement efforts have materially strengthened the Town's financial position.

Long-Term Challenges
While the report identifies numerous positive indicators, several long-term challenges remain.

Population recovery must continue, Measure V is scheduled to sunset in 2031, transportation revenues remain insufficient to fully address long-term roadway maintenance needs, and recovery-related funding sources will gradually diminish over time.

As recovery transitions toward long-term stewardship, the Town's focus will increasingly shift from rebuilding assets to maintaining them.

Financial Impact:

The report itself does not create a direct financial impact. Rather, it provides an evaluation of the Town's current financial position and long-term outlook to inform future policy decisions.

Key findings indicate that the Town has processed approximately $342 million in cumulative expenditures since 2019 while maintaining approximately $209 million in total financial resources.

The report concludes that successful grant acquisition, reimbursement recovery, revenue growth, investment performance, and strategic use of PRO Fund resources have enabled the Town to aggressively advance recovery efforts while preserving long-term financial sustainability.

Attachments:

Financial Health & Organizational Impact Report dated June 9, 2026. 53 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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Financial Health & Organizational
Impact Report

TOWN OF PARADISE
JUNE 9, 2026
54 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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Table of
contents
Executive Summary 3
How Paradise Finances Work 5
Recovery & Financial Health Dashboard 8
2023 Prediction vs. 2026 reality 9
Financial Position Snapshot 15
Department Performance 16
Police........................................................... 16 Fire............................................................... 17 Community Development....................... 18
Public Works .............................................. 19 Recovery & Economic Development..... 22
Finance........................................................ 25 Other Central Services ............................. 26 Town of Paradise....................................... 27 Financial Output & PRO Fund Forecast 31
Special Fund Review 33
Fund Grades & Future Outlook 37
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EXECUTIVE SUMMARY
This report evaluates the Town of Paradise's financial condition, organizational capacity, and recovery progress following the Camp Fire while comparing actual performance against assumptions contained within the 2023 Fiscal Sustainability Model (FSM).

Overall, the Town's recovery and financial performance have generally met or exceeded the assumptions contained within the FSM. While annual population estimates remain below model projections, housing restoration, traditional revenue growth, investment performance, grant acquisition, infrastructure delivery, and organizational capacity have largely outperformed expectations.

Since 2019, the Town has processed approximately $342 million in expenditures supporting municipal operations, public safety services, housing programs, infrastructure improvements, wildfire resiliency initiatives, and community recovery efforts. During the same period, the Town secured approximately $437 million in external grant funding and recovery resources while restoring 5,822 housing units, issuing 3,647 single-family rebuilding permits, advancing a $364 million capital improvement and recovery project portfolio, restoring local public safety services, and implementing numerous community recovery initiatives.

The Town's financial position remains stronger than anticipated when the Fiscal Sustainability Model was developed. As of March 2026, the Town maintained approximately $209 million in total financial resources, including invested assets, liquid cash, and pending reimbursements. Despite substantial investments in recovery, infrastructure, public services, and organizational capacity, current financial resources exceed the Fiscal Sustainability Model's FY2025/26 projection by approximately $29 million.

Housing recovery has substantially tracked the assumptions contained within the Fiscal Sustainability Model. Population recovery, however, remains more difficult to quantify.

The Town restored approximately 5,822 housing units compared to a model projection of 6,000 units, suggesting reconstruction efforts have largely achieved anticipated recovery targets. While the California Department of Finance estimates Paradise's population at 10,581 residents, the Town continues to experience strong growth and was recognized as California's fastest-growing municipality in 2025 for the fourth time in five years. Future census efforts will provide a more comprehensive understanding of long-term population recovery.

The Town's organization has evolved significantly since the Camp Fire. Staffing increased from approximately 69 full-time equivalent positions to more than 100 56 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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positions while supporting expanded responsibilities associated with recovery, housing, grant administration, infrastructure delivery, economic development, fire prevention, code enforcement, public safety, and long-term community resiliency.

These investments reflect deliberate policy decisions by the Town Council to restore services, strengthen local capacity, and accelerate recovery.

Several long-term challenges remain. Population recovery must continue, Measure V is scheduled to sunset in 2031, transportation revenues are not expected to keep pace with future roadway maintenance obligations, and recovery-related funding sources will gradually diminish over time. As recovery transitions into long-term stewardship, the Town's focus must increasingly shift from rebuilding assets to maintaining them.

The most significant finding of this report is that the Town's financial position has not deteriorated despite substantial investment in recovery. Through strategic use of the PRO Fund, successful pursuit of grants and reimbursements, growth in traditional revenues, and strong investment performance, Paradise has been able to aggressively advance recovery while preserving long-term financial sustainability. The Town enters the next phase of recovery from a position of relative strength and is increasingly transitioning from a community focused on rebuilding to a community focused on sustaining and building upon the progress achieved since the Camp Fire. 57 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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HOW PARADISE FINANCES WORK
The Town of Paradise operates through a combination of recurring revenues, restricted revenues, grants, and long-term recovery resources that collectively fund municipal services, infrastructure, and community recovery efforts.

The General Fund serves as the Town's primary operating fund and supports core municipal services including police services, fire protection, administration, finance, public works, engineering, community development, information technology.

Primary General Fund revenues include property taxes, sales taxes, franchise fees, state revenues, service charges, and other local revenues.

In addition to the General Fund, the Town administers several restricted and specialpurpose funds, including Measure V, Gas Tax, building and wastewater permit funds, grant-funded programs, and other special revenue funds that may only be used for specific purposes. Measure V funds are dedicated to service which support Police, Fire, Animal Control and Public Works.
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Following the 2018 Camp Fire, the Town established the Paradise Recovery & Operations (PRO) Fund utilizing approximately $219 million in one-time settlement proceeds.

The PRO Fund was designed to bridge the Town from disaster recovery to long-term fiscal sustainability by supporting recovery efforts, restoring municipal services, investing in infrastructure, leveraging external funding opportunities, and preserving long-term financial stability while traditional revenues recovered. The PRO Fund makes the Town of Paradise extremely unique from most communities which rely solely on recurring revenues.
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Today, the Town's financial strategy relies on the coordinated use of traditional revenues, Measure V revenues, grant funding, and strategic PRO Fund investments to maintain service levels, advance community recovery, support economic growth, and strengthen long-term community resiliency.

The financial health of the Town is therefore measured not by any single fund balance, but by the combined performance of its traditional revenues, recovery investments, service delivery capabilities, infrastructure programs, and long-term financial resources.

Traditional
Revenue Growth
Essential
Services
PRO Fund
Investments
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RECOVERY & FINANCIAL HEALTH DASHBOARD
Current
Population 10,581
Population Recovery Percentage 40%
Single-Family Certificates of Occupancy 3,191
Multi-Family Certificates of Occupancy 1,006
Homes Under Construction 456
Active Business Licenses 603 (291 Contractors)
2018 Inflation Adjusted Annual Revenues $17.2M
Projected Annual Revenues $11.4M
Total Grant Funds Secured (2019-Present) $437M
Total Grant Funds Remaining (2026-2031) $334M
Cumulative All-Funds Spending (2019-2026) $342M
Current Annual All-Funds Spending $75M
PRO Fund Starting Balance 2019 $219M
Total PRO Funds Actively Invested $166M
Liquid Assets (Cash) $14M
Pending Reimbursements $29M
Total Financial Resources
(PRO Fund Investments + Liquid + Pending
Reimbursements)
$209M
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2023 PREDICTION VS. 2026 REALITY
In 2023, the Town updated its Fiscal Sustainability Model (FSM) to evaluate long-term financial sustainability and forecast recovery progress, revenue growth, service restoration, and utilization of the Paradise Recovery & Operations (PRO) Fund. The model provided a framework for evaluating whether the Town's recovery strategy would successfully bridge the community from post-disaster recovery to long-term financial sustainability.

Three years later, the Town can compare actual outcomes against those assumptions and evaluate the effectiveness of the recovery strategy.

Population & Housing Recovery
The Fiscal Sustainability Model assumed “Moderate” continued population growth and housing reconstruction as key drivers of long-term revenue recovery and community sustainability.

Metric Predicted (26/27) Reality (26/27)
Population 15,000 10,581
Housing Units 6,000 5,822

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Key Observation
Housing recovery has substantially tracked the assumptions contained within the Fiscal Sustainability Model, with approximately 5,822 housing units restored compared to a projection of approximately 6,000 units by FY2026/27. Population recovery, as measured by the California Department of Finance's January 2026 estimate of 10,581 residents, appears to lag the model's projection of 15,000 residents.

The Town recognizes that annual population estimates are highly dependent upon assumptions regarding occupancy rates, vacancy factors, and housing characteristics.

Paradise was assigned an average household size of approximately 2.17 persons per household, the lowest occupancy rate in Butte County. For comparison purposes, applying a modest increase to 2.30 persons per household would result in a materially higher population estimate (13,390), while occupancy assumptions closer to statewide averages would produce estimates approaching the Fiscal Sustainability Model's projection.

While the Town appreciates the Department of Finance's efforts to provide annual population estimates, restored housing inventory, continued residential occupancy, strong development activity, and sustained growth trends suggest that actual population recovery may be higher than current estimates indicate. Notably, Paradise was identified as California's fastest-growing municipality in 2025 for the fourth time in five years, recording approximately 9 percent year-over-year growth.

Given the limitations of annual population estimation methodologies during largescale disaster recovery, housing restoration may currently represent the more reliable measure of recovery progress. The Town looks forward to future census data collection efforts, including the 2030 Census, which are expected to provide a more comprehensive understanding of population recovery within the community.

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Traditional Revenue Growth
The Fiscal Sustainability Model anticipated that traditional municipal revenues would gradually recover as population and housing growth continued.

Metric Predicted (26/27) Reality (26/27)
Traditional Revenues $12M $11.4 (projected)
Expenditures $23M $23M

Key Observation
Traditional revenues have generally performed in line with forecast assumptions despite population recovery remaining below model projections. Continued growth in property tax revenues, sales tax revenues, development activity, and voter-approved revenues has strengthened the Town's long-term financial outlook. The relative alignment between projected and actual revenues suggests that housing recovery, economic activity, and assessed valuation growth have partially offset slower-thananticipated population recovery.

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Paradise Recovery & Operations Fund
The Fiscal Sustainability Model anticipated that PRO Fund resources would be strategically utilized to sustain operations, support recovery efforts, and bridge the Town toward long-term financial sustainability.

Metric Predicted (26/27) Reality (26/27)
Annual PRO Fund Use $10M $14M
PRO Fund Invested $182M* $166M
PRO Funds Not Invested N/A $43M
TOTAL PRO Fund $182M $209M
* 2023 Fiscal Sustainability Model did not account for PRO Funds not invested (no cash on hand) Key Observation
The Town's current PRO Fund balance reflects improved performance relative to forecast assumptions. Consistent with Council policy, PRO Fund resources have been utilized to support service restoration, recovery investments, infrastructure planning, economic development, and long-term financial stability while preserving substantial reserves for future needs. Additionally, the Town’s current financial position includes Graphic excludes 10% Reserve
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$14M in short-term liquid accounts and $29M in pending reimbursements, that when received, will be re-invested into the PRO Fund portfolio.

When combined with liquid assets and pending reimbursements, total financial resources exceed the Fiscal Sustainability Model's projected FY2025/26 position despite more than $341 million in cumulative expenditures since 2019.

Investment Performance
The Fiscal Sustainability Model assumed long-term investment earnings of approximately 1.5% annually. Actual performance has significantly exceeded those assumptions.

As of March 31, 2026, the Town's actively managed investment portfolio totaled approximately $166.2 million and was generating a weighted average yield to maturity of 3.95%, more than double the return assumed in the Fiscal Sustainability Model. The portfolio maintains a conservative investment strategy with an average credit rating of AA, diversified across U.S. Treasuries, federal agencies, municipal bonds, corporate bonds, mortgage-backed securities, and other high-quality fixed-income securities.

Key Observation
Investment returns continue to outperform model assumptions. The Fiscal Sustainability Model assumed investment earnings of approximately 1.5% annually; however, the Town's investment portfolio is currently generating yields approaching

4.0%. This higher interest rate environment has produced substantially greater investment income than originally forecast, strengthening the Town's financial position while maintaining a conservative risk profile focused on capital preservation and liquidity.

Overall Assessment
The 2023 Fiscal Sustainability Model anticipated a gradual transition from disaster recovery toward long-term sustainability through strategic use of recovery resources, restoration of municipal services, and growth in traditional revenues.

Overall, actual recovery and financial performance have generally met or exceeded the assumptions contained within the 2023 Fiscal Sustainability Model. While population recovery has lagged projections (likely due to calculation methodologies), housing restoration, traditional revenue growth, investment performance, organizational capacity, and remaining financial resources have generally outperformed model expectations. Together, these indicators suggest the Town 66 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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remains on a sustainable financial trajectory while continuing to advance recovery, resiliency, and long-term community investment objectives. 67 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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FINANCIAL POSITION SNAPSHOT
The Town's financial position is supported by a combination of traditional operating revenues, recovery resources, cash and investments, reserve balances, and pending reimbursements. Together, these resources provide the financial capacity necessary to maintain municipal services, support ongoing recovery efforts, advance infrastructure projects, and respond to future challenges. Below is a snapshot of the Town’s overall financial position as of the quarter ending March 30, 2026.

Category Balance
Liquid Accounts $14M
PRO Fund $166M
Pending Reimbursements $29M
Total Financial Resources $209M
As of March 31, 2026, the Town maintained approximately $166 million in PRO Fund balances and $14M liquid cash resources, in addition to approximately $29 million in pending recovery-related reimbursements. Overall, the Town’s resources continue to support long-term operational sustainability, infrastructure investment, and community recovery objectives.

Key Observation
Pending reimbursements represent approved or anticipated recovery-related reimbursements that have not yet been received and are therefore not currently reflected in fund balances.

The Town currently has approximately $29 million pending reimbursements, including approximately $19 million awaiting FEMA review and processing. While these reimbursements represent a significant future financial resource, the timing of receipt remains dependent upon FEMA's reimbursement process and associated administrative review requirements.

The Town's current cash position and reserve structure have allowed recovery projects and municipal services to continue advancing while reimbursement requests remain under review.

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DEPARTMENT PERFORMANCE
Department performance is evaluated not only through staffing and budget changes, but also through the expanded responsibilities, recovery activities, and community outcomes associated with post-Camp Fire recovery. The following sections compare pre-fire and current organizational capacity while highlighting major accomplishments and evolving service demands.

Police
FY 18/19 FY 25/26
FTE Count 35.4 31
Operating Budget $5,484,000 $8,448,000
Inflation Adjusted Budget $7,184,000 $8,448,000
General Fund Impact 44% 36%
Misdemeanor Arrests 1457 410
Felony Arrests 300 142
Officer Initiated Activity 5,712 5,149
Calls for Service 19,879 10,951
Post-Fire Expanded Responsibilities
Following the Camp Fire, the Police Department assumed a significantly expanded role in supporting community recovery, rebuilding activity, and public safety needs associated with a growing population and construction workforce. The Department has restored local dispatch services, expanded enforcement and community policing capabilities, enhanced emergency preparedness and evacuation planning efforts, and increased support for code enforcement, and quality-of-life issues. These investments have strengthened local public safety services while improving response capabilities and community engagement during the recovery period.

Key Observation
The restoration of local dispatch services and continued investment in police staffing represent deliberate Council policy decisions to enhance public safety, improve service delivery, and support long-term community recovery and resilience. 69 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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Police – Animal Control
FY 18/19 FY 25/26
FTE Count 4 3.55
Operating Budget $317,000 $494,000
Inflation Adjusted Budget $415,000 $494,000
General Fund Impact 1% 2%
Incidents 1,528 1,174

Post-Fire Expanded Responsibilities
Following the Camp Fire, Animal Control responsibilities expanded significantly as the Town experienced increased activity associated with vacant properties, abandoned animals, transient populations, code enforcement coordination, and public safety concerns. While originally envisioned as a largely fee-supported operation, Animal Control has increasingly become a General Fund-supported municipal service necessary to meet community expectations and public safety needs.

Key Observation
Measure C and its successor, Measure V, helped support Animal Control services during a critical period of recovery and community rebuilding. As service demands have continued to evolve, the program now relies primarily on General Fund support rather than enterprise revenues, reflecting its role as an essential public safety and quality-of-life service.

Fire – CalFire Personnel Services Contract
FY 18/19 FY 25/26
FTE Count 0.6 1
Contract FTE Count 18.51 20
Operating Budget $4.5M $6.3M
Inflation Adjusted Budget $5.9M $6.3M
General Fund Impact 34% 27%
Annual Calls for Service 4,159 2,109

Post-Fire Expanded Responsibilities
The Town has maintained and enhanced its partnership with CAL FIRE to provide fire protection, emergency response, and wildfire preparedness services during a period of unprecedented community recovery. Since the Camp Fire, the Town has prioritized maintaining service levels while supporting community resilience through fuels reduction initiatives, defensible space enforcement, evacuation planning, vegetation 70 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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management programs, and public education efforts. These investments reflect the community's continued focus on wildfire risk reduction and emergency preparedness.

Key Observation
Maintaining CAL Fire service levels following the Camp Fire has been a significant and ongoing investment by the Town, supporting both traditional fire protection services and broader community wildfire resilience objectives.

Community Development
FY 18/19 FY 25/26
FTE Count 10 25.45
Operating Budget $1.1M $5.1M
Inflation Adjusted Budget $1.4M $5.1M
General Fund Impact 2% 6%
Development Eng. Permits 18 239
Fire Prevention Activities 303 2,926
Code Enforcement Cases 233 1,728
Single Family Applications 22 463
Planning Permits 319 161
Wastewater Permits 8,395 3,623

Post-Fire Expanded Responsibilities
Following the Camp Fire, the Community Development Department assumed a central role in Paradise's recovery by supporting rebuilding, housing restoration, infrastructure planning, wastewater management, fire prevention, and community resiliency initiatives. In addition to traditional planning, building permit review, inspections, code compliance, and wastewater permitting activities, the Department's responsibilities expanded to include development engineering, defensible space inspections, hazardous vegetation abatement, fuels reduction initiatives, affordable housing development, wildfire resilience standards, and implementation of enhanced fire prevention programs.

The Department has facilitated one of the largest residential rebuilding efforts in California history while continuing to provide core planning, permitting, wastewater, and development review services. Planning, wastewater, development engineering, and building functions have experienced elevated workloads associated with rebuilding activity, housing development, septic system permitting, land use review, and advancement of the Paradise Sewer Project. At Council direction, the Department has also placed significant emphasis on reducing wildfire risk through proactive code 71 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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enforcement, defensible space compliance, fire prevention activities, and fuels reduction efforts on both occupied and vacant properties.

Key Observation
The Community Development Department has been instrumental in advancing Paradise's recovery by helping restore housing, businesses, and community infrastructure while maintaining compliance with evolving building, planning, fire, wastewater, and safety standards. Since 2017, development engineering activity increased from 23 permits to 239 permits annually, fire prevention activities increased from 358 to 2,926 annually, and code enforcement activity increased from 117 to 1,728 cases annually. Defensible space and wildfire mitigation programs, which did not exist at their current scale prior to the Camp Fire, now account for more than 35,000 annual inspections and compliance activities. As of March 2026, the Town had issued 3,647 single-family rebuilding permits, restored 3,191 single-family homes and 1,006 multifamily housing units, and maintained approximately 456 homes under construction. The Department continues to balance substantial recovery-related workloads with ongoing municipal services necessary to support a growing and rebuilding community.

Public Works – Maintenance
FY 18/19 FY 25/26
FTE Count 6 7
Operating Budget $1,039,000 $1,688,000
Inflation Adjusted Budget $1,361,090 $1,688,000
General Fund Impact 0% 0%
Mileage Maintained 100 100
Post-Fire Expanded Responsibilities
Following the Camp Fire, the Public Works Maintenance Division experienced a significant expansion in responsibilities while continuing to maintain approximately 100 miles of roadway and associated public infrastructure. In addition to traditional roadway, drainage, sign, and facility maintenance activities, the Division has been responsible for addressing ongoing recovery-related impacts including roadway deterioration associated with rebuilding activity, utility undergrounding projects, increased stormwater runoff, erosion and sedimentation resulting from vegetation loss, hazardous tree removal within the public right-of-way, and continued snow removal operations during severe winter storms.
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Key Observation
The Public Works Maintenance Division faces a significant long-term funding challenge. Transportation revenues remain below pre-fire levels despite the Town's continuing responsibility to maintain approximately 100 miles of roadway and associated infrastructure. While the Town successfully secured a one-time $9.3 million state allocation to supplement transportation funding through June 30, 2030, additional funding strategies will be necessary to sustain roadway maintenance activities and preserve recently reconstructed infrastructure beyond that date.

Public Works – Fleet
FY 18/19 FY 25/26
FTE Count 1 2.45
Operating Budget $246,000 $518,000
Inflation Adjusted Budget $322,000 $518,000
General Fund Impact 2% 2%
Fleet Inventory 75 140
Post-Fire Expanded Responsibilities
The Fleet Division is responsible for acquisition, maintenance, repair, replacement, and lifecycle management of the Town's vehicle and equipment fleet. Core responsibilities include preventive maintenance, equipment repairs, fuel management, vehicle replacement planning, regulatory compliance, and support of emergency response operations across all Town departments.

Since the Camp Fire, the Fleet Division has supported a growing and increasingly specialized fleet serving recovery operations, roadway maintenance, engineering, code enforcement, fire prevention, building inspection, animal control, and public safety functions. The Division also plays an important role in maintaining operational readiness during emergency events, including severe winter storms, wildfire response activities, and disaster recovery operations.

Key Observation
While often operating behind the scenes, the Fleet Division provides critical support to virtually every Town service. Reliable vehicles and equipment are essential for maintaining public infrastructure, delivering emergency services, enforcing municipal codes, supporting recovery projects, and responding to community needs. As the Town's organizational responsibilities and field operations have expanded, the importance of strategic fleet replacement planning has increased to ensure aging 73 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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vehicles and equipment can be replaced before maintenance costs and service disruptions become significant.

Continued investment in fleet maintenance and replacement will remain necessary to support the Town's long-term operational effectiveness and protect the substantial investments made in personnel, infrastructure, and public services throughout the recovery period.

Public Works – Engineering
FY 18/19 FY 25/26
FTE Count 2 10
Operating Budget $333,000 $827,000
Inflation Adjusted Budget $436,230 $827,000
General Fund Impact 1% 3%
CIP Projects 16 29
CIP Budget $16M $364M
Annual Project Delivery $3M $67M
Post-Fire Expanded Responsibilities
Following the Camp Fire, the Public Works Engineering Division assumed a central role in planning, funding, designing, and delivering the infrastructure necessary to support community recovery. In addition to traditional engineering, development review, surveying coordination, traffic engineering, and capital project management responsibilities, the Division has led implementation of major grant-funded roadway, drainage, evacuation, utility, and public facility improvements throughout the community.

The scale and complexity of the Town's capital program has increased substantially during the recovery period. The Division has secured and administered significant state and federal grant funding, coordinated environmental review and permitting efforts, managed consultant and contractor teams, and advanced infrastructure projects intended to improve safety, resiliency, and long-term community sustainability. These efforts include roadway reconstruction, evacuation route improvements, drainage enhancements, utility undergrounding coordination, and planning associated with the Paradise Sewer Project.

Key Observation
The Public Works Engineering Division has experienced one of the most significant transformations of any Town department since the Camp Fire. In FY2017/18, the Town managed a traditional capital program consisting of approximately 16 projects valued 74 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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at roughly $15 million. Today, the Division administers a Disaster Recovery and Capital Improvement Program totaling approximately $364 million across 29 active projects.

Through aggressive pursuit of state and federal funding, the Town has transformed a relatively modest capital program into one of the largest infrastructure investment efforts in its history, delivering roadway reconstruction, evacuation improvements, drainage projects, utility coordination, and planning for the Paradise Sewer Project.

Recovery & Economic Development
FY 18/19 FY 25/26
FTE Count N/A 4.7
Operating Budget N/A $1.1M
Inflation Adjusted Budget N/A $1.1M
General Fund Impact N/A 4%
Recovery Projects Budget N/A $30M
Housing Units 13,091 5,822

Post-Fire Expanded Responsibilities
Following the Camp Fire, the Recovery & Economic Development Department was established to coordinate the Town's long-term recovery efforts and advance strategic initiatives necessary to rebuild Paradise. The Department's mission extends beyond traditional economic development activities and includes grant acquisition, recovery planning, legislative advocacy, public communications, workforce development, healthcare initiatives, business support, downtown revitalization, wildfire resilience programs, and implementation of community recovery projects.

Since its creation, the Department has led efforts to secure external funding, develop and implement recovery strategies, coordinate with local, state, and federal partners, and advance initiatives designed to strengthen Paradise's economic, social, and physical resilience. Major efforts have included implementation of the Long-Term Community Recovery Plan, Early Warning Siren Program, Category 4 Tree Removal Program, Fuels Reduction Program, Residential Ignition Resistant Rehabilitation Program, Downtown Revitalization initiatives, healthcare attraction efforts, and numerous grant-funded recovery projects.

The Department also administers major workforce development initiatives, including approximately $17 million in CDBG-DR Workforce funding intended to expand local employment opportunities, workforce training capacity, and economic resilience.

These efforts, undertaken in partnership with Butte College, Paradise Unified School District, and other community stakeholders, are intended to help create the jobs, 75 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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services, and economic conditions necessary to support continued population recovery and long-term community sustainability.

The Department has also played a key role in public engagement and advocacy efforts, helping communicate recovery progress, secure legislative support, attract investment, and position Paradise for long-term economic sustainability as rebuilding continues.

Key Observation
Few departments have had a greater influence on Paradise's recovery trajectory than Recovery & Economic Development. Through strategic planning, grant acquisition, legislative advocacy, interagency coordination, and implementation of recovery initiatives, the Department has helped transform recovery opportunities into funded projects and community investments. Since 2019, the Department's work has contributed to securing more than $437 million in external funding while advancing wildfire resilience, housing, infrastructure, healthcare, workforce development, economic revitalization, and community preparedness initiatives.

While population recovery remains one of the Town's most important long-term objectives, the Department has helped establish many of the conditions necessary to support future growth, including housing development, healthcare expansion, workforce development investments, economic revitalization initiatives, and major infrastructure improvements. As Paradise transitions from recovery to long-term sustainability, the Department's success will increasingly be reflected in population growth, housing occupancy, private investment, workforce participation, business activity, and overall community vitality.

Recovery & Economic Development – Housing
FY 18/19 FY 25/26
FTE Count 1.5 2.75
Operating Budget $252,000 $515,000
Inflation Adjusted Budget $330,000 $515,000
General Fund Impact 0% 0%
Affordable Housing Projects 0 7
Affordable Units in Progress 0 142
Affordable Units Complete 0 150
Housing Programs Portfolio >$500,000 $108M
Program Households Served 15 36 (5-year average)

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Post-Fire Expanded Responsibilities
Following the Camp Fire, the Housing Division emerged as a critical component of Paradise's recovery strategy by developing and administering programs designed to restore housing opportunities across all income levels. In addition to managing traditional housing programs, the Division has assumed responsibility for affordable housing development, rehabilitation and reconstruction assistance, first-time homebuyer programs, infill housing initiatives, grant administration, and partnerships with public and private housing developers.

The Division's efforts are focused on replacing lost housing stock, increasing housing affordability, supporting workforce housing needs, and helping residents return to Paradise. Through a combination of local, state, and federal funding sources, the Division has advanced multiple housing programs intended to accelerate recovery while addressing long-term housing shortages that existed both before and after the Camp Fire.

Key Observation
Housing recovery remains one of the most important factors influencing Paradise's long-term sustainability and population growth. The Housing Division has successfully transitioned from a traditional housing assistance role to a proactive housing development and financing function focused on increasing housing supply and affordability.

As of FY2025/26, the Division has helped facilitate seven affordable housing developments totaling 292 affordable housing units, assisted more than an average of 36 households per year through rehabilitation, reconstruction, and homeownership programs, and leveraged more than $108 million in housing investments. These efforts directly support continued population recovery, workforce retention, housing affordability, and long-term economic sustainability.

The Division continues to leverage grant funding, public-private partnerships, and innovative housing programs to accelerate housing production and expand housing opportunities throughout the community.
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Finance
FY 18/19 FY 25/26
FTE Count 3 6
Operating Budget $235,000 $614,000
Inflation Adjusted Budget $307,000 $614,000
General Fund Impact 3% 3%
Annual Financial Activity $18.5M $75M
Investment Portfolio N/A $166M
Post-Fire Expanded Responsibilities
Following the Camp Fire, the Finance Department assumed a critical role in managing the Town's financial recovery while maintaining traditional accounting, budgeting, payroll, purchasing, treasury, and financial reporting functions. In addition to supporting daily municipal operations, the Department became responsible for administering complex grant and reimbursement programs, monitoring recoveryrelated expenditures, managing investment portfolios, and ensuring adequate liquidity to support ongoing operations and capital projects.

As recovery efforts expanded, the Department faced increased demands associated with tracking multiple funding sources, processing reimbursement claims, administering grant requirements, and coordinating financial reporting across a growing portfolio of recovery and infrastructure projects. These responsibilities required the development of enhanced financial controls, reporting systems, and cash management practices to support both transparency and long-term fiscal sustainability.

Key Observation
The Finance Department has played a central role in maintaining the Town's financial stability throughout the recovery period. Beyond traditional municipal finance responsibilities, the Department has managed the daily challenge of balancing cash flow demands associated with major recovery projects, grant-funded infrastructure investments, and operational needs while simultaneously maximizing investment returns on available resources. This has required continuous monitoring of liquidity, reimbursement timing, project expenditures, investment performance, and revenue trends to ensure sufficient resources are available when needed. The Department's ability to successfully manage these competing demands has contributed significantly to the Town's strong financial position, sustained investment performance, and ability to advance recovery initiatives without compromising long-term fiscal sustainability. 78 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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As annual financial activity increased from approximately $18.5 million to $75 million per year and the Town's investment portfolio grew to approximately $166 million, the Finance Department's role expanded significantly beyond traditional municipal accounting functions.

Other Central Services (IT/HR/TM/Legal/Clerk/Council)
FY 18/19 FY 25/26
FTE Count 5.4 6.9
Operating Budget $1.1M $3.1M
Inflation Adjusted Budget $1.4M $3.1M
General Fund Impact 13% 17%
FTEs Served 68.8 101.8
Post-Fire Expanded Responsibilities
Other Central Services includes the Town Manager's Office, Human Resources, Information Technology, Legal Services, Town Clerk, and Town Council functions.

These divisions provide executive leadership, policy implementation, legislative support, records management, human resources administration, technology services, legal counsel, risk management, and organizational support for all Town operations.

Since FY18/19, Central Services has supported a significantly larger and more complex organization while helping coordinate disaster recovery efforts, capital project delivery, grant administration, public engagement, cybersecurity improvements, workforce development, regulatory compliance, and strategic planning initiatives. These functions have played a critical role in supporting both daily municipal operations and the Town's long-term recovery efforts.

Key Observation
While the Town's overall staffing increased from 68.8 FTEs to 101.8 FTEs, Central Services staffing increased more modestly from 5.4 to 6.9 FTEs. As a result, Central Services now supports a substantially larger organization while maintaining a similar share of General Fund resources. Although operating budgets have increased to address inflation, technology investments, legal requirements, cybersecurity needs, and organizational complexity, the combined departments’ proportionate impact on the General Fund has remained relatively stable, demonstrating an ability to absorb expanded organizational responsibilities with limited staffing growth. 79 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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Town of Paradise
FY 18/19 FY 25/26
FTE Count 68.8 101.8
Operating Budget $12.9M $23.4M
Inflation Adjusted Budget $16.8M $23.4M
General Fund Impact 100% 100%
All Funds Annual Activity $23.5M $75.2M
Staffing Levels
The Town's FY2008/09 budget included approximately 110 FTE positions prior to recession-era staffing reductions and implementation of the CAL FIRE contract service model. While staffing has increased from 68.0 FTE in FY2017/18 to 100.4 FTE in FY2025/26, current staffing remains below pre-recession levels (110 FTE) despite significantly expanded recovery and service responsibilities.

Since FY18/19, staffing has increased approximately 48%, however, annual financial activity (funds spent) increased from $18.6 million to $75.2 million per year. Further, there has been minimal growth in net staffing levels since 2023. Much of this growth reflects Council-directed investments in recovery, housing, grant administration, capital project delivery, fire prevention, and economic development functions that either did not exist or operated at substantially smaller scales prior to the Camp Fire. 0 20
40 60
80 100
120
Town Staffing Levels Review
Contract
Town FTE
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2018/2019 Adopted Organization Chart

2025/2026 Adopted Organization Chart

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General Fund Impacts
The General Fund serves as the Town's primary operating fund and supports a wide range of municipal services, personnel, facilities, technology systems, professional services, and organizational functions. While departmental staffing and operating budgets provide one perspective on resource allocation, reviewing General Fund expenditures by service area helps illustrate how the Town prioritizes available resources.

The graphic above demonstrates that public safety remains the Town's largest General Fund investment. Police, Fire, and Animal Control services collectively account for approximately 65% of all General Fund expenditures, reflecting longstanding Council priorities related to public safety, emergency response, wildfire preparedness, and quality-of-life services. Community Development, Public Works, Recovery & Economic Development, Finance, and Other Central Services collectively account for the remaining General Fund expenditures necessary to support rebuilding, infrastructure delivery, financial management, regulatory compliance, and municipal operations.

Key Observation
The Town's General Fund allocation reflects a recovery strategy centered on maintaining strong public safety services while simultaneously investing in the organizational capacity necessary to rebuild the community. Although staffing and operational responsibilities have expanded significantly since the Camp Fire, approximately two-thirds of General Fund resources remain dedicated to Police, Fire, and Animal Control services. The remaining one-third supports the departments $8.42
$6.32
$3.98
$1.40 $0.94 $0.70 $0.70 $0.47 $0.47
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
FY 2025/26 General Fund Distribution (in $ millions)
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responsible for recovery implementation, infrastructure delivery, community development, financial management, and organizational support. This allocation demonstrates the Town's continued commitment to balancing immediate public safety needs with the long-term investments necessary to sustain recovery and community growth.
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FINANCIAL OUTPUT & PRO FUND FORECAST
Since establishment of the PRO Fund, the Town has processed approximately $341.5 million in expenditures supporting municipal operations, infrastructure improvements, public safety services, recovery initiatives, and community rebuilding efforts. Through strategic use of grants, reimbursements, Measure V revenues, traditional revenues, and investment earnings, total expenditures substantially exceed the reduction in PRO Fund resources. The PRO Fund's starting balance was approximately $219 million and, despite facilitating more than $341 million in financial activity since 2019, the Town's total financial resources today are approximately $209 million, including approximately $166 million in invested assets.

PRO Fund Forecast Update
The 2023 Fiscal Sustainability Model projected approximately $180 million in remaining PRO Fund resources (including a single 10% reserve) by Fiscal Year 2025/26 and approximately $30 million by Fiscal Year 2045, reflecting a planned reduction of approximately $150 million over the twenty-year planning horizon.

Today, the Town maintains approximately $209 million in total financial resources when accounting for invested assets, liquid cash, and pending reimbursements. As a result, current financial resources exceed the Fiscal Sustainability Model's FY2025/26 projection by approximately $29 million.

Applying the same rate of proportional reduction in financial resources reflected in the 2023 Fiscal Sustainability Model to the Town's current financial resources results in an

18.6 18.7

23.7 31.5 33.5

47.3 62.7

67.6 75.2
0 10
20 30
40 50
60 70
80 FY 17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 Financial Activity ($ millions)
Financial Activity ($ millions)
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equivalent planning-level balance of approximately $59 million by 2045. While this comparison is not intended to replace or update the Fiscal Sustainability Model, it suggests that current financial resources, investment performance, revenue growth, and pending reimbursements have positioned the Town more favorably than anticipated when the model was developed.
2023
Fiscal Sustainability Model
2026
Financial Health Review
2019 Balance $219M (actual) $219M (actual)
2026 Balance $180M (projected) $209M* (actual)
2045 Balance $30M (projected) $59M (projected)
*includes liquid and pending reimbursements financial resources The Town's recovery strategy has at times created the perception that financial resources were being committed aggressively. In many respects, that perception is accurate. The Town has intentionally invested significant resources into restoring public services, rebuilding organizational capacity, advancing critical infrastructure projects, reducing wildfire risk, supporting public safety, and accelerating community recovery. However, the more important measure is not the amount spent, but the financial position achieved after those investments were made.

Key Observation
Since 2019, the Town has processed approximately $342 million in expenditures while maintaining total financial resources of approximately $209 million compared to the PRO Fund's original $219 million balance. This outcome reflects the combined effects of successful grant acquisition, reimbursement recovery, revenue growth, investment performance, and disciplined financial management. While substantial resources have been invested into recovery and community rebuilding, the Town's overall financial position remains largely intact and stronger than anticipated when the Fiscal Sustainability Model was developed.
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SPECIAL FUND REVIEW
In addition to the General Fund and Paradise Recovery & Operations (PRO) Fund, the Town administers several special-purpose funds that support specific municipal services and infrastructure programs. These funds operate under unique revenue structures, expenditure requirements, and financial objectives that differ from traditional municipal operations.

The following review evaluates the financial condition, performance, and long-term outlook of the Town's major special revenue and enterprise funds. Particular attention is given to whether current revenues are sufficient to sustain service levels, maintain infrastructure, and support future community needs without creating long-term financial pressures on the General Fund or PRO Fund.

Measure V
Measure V was approved by Paradise voters in November 2018, just two days before the Camp Fire, as a continuation of Measure C and a dedicated local funding source for public safety and infrastructure needs. While not originally intended as a disaster recovery measure, Measure V quickly became an important component of the Town's financial recovery strategy by providing stable, locally controlled revenues during a period of unprecedented uncertainty and rebuilding.

Since the Camp Fire, Measure V revenues have helped support police services, fire protection, animal control, roadway maintenance, and other Council priorities. The measure has provided an important source of financial stability as the Town rebuilt its population, tax base, and municipal services.

Key Observation
The timing of Measure V's approval proved particularly significant, providing an extended (Measure C) dedicated local revenue source at the outset of the Town's recovery. As recovery efforts continue and the measure approaches its 2031 sunset date, Measure V revenues remain an important component of the Town's long-term financial strategy and have helped support a stronger financial position than might otherwise have been possible following the Camp Fire.

Building & Wastewater Enterprise Fund (Fund 2030)
The Building & Wastewater Enterprise Fund operates as a fee-supported program intended to recover the cost of providing building permit review, inspections, plan review, wastewater permitting, code compliance support, and related services. During the recovery period, the Building Division experienced extraordinary permit volumes associated with rebuilding efforts, resulting in significant revenues and growth in fund 86 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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reserves while simultaneously supporting expanded staffing and service demands necessary to facilitate recovery.

As rebuilding activity gradually transitions toward more typical development patterns, permit revenues are expected to normalize. The Town recently completed a comprehensive Master Fee Study which identified several areas where fees no longer fully recover the cost of providing services. In response, the Town adopted an updated Master Fee Schedule intended to improve cost recovery and support the long-term financial sustainability of the fund.

The table below illustrates the recent decline in fund balance as reserves accumulated during peak rebuilding activity have been utilized to support ongoing operations, staffing, technology investments, and expanded service levels.

Key Observation
Although Fund 2030 balances are projected to decline from peak recovery-era levels, the fund continues to maintain a healthy reserve position while supporting elevated service demands associated with rebuilding, wastewater management, code enforcement, fire prevention, and development review activities. If the recently reviewed Master Fee Schedule is adopted through future Council action, the Fund could anticipate improved cost recovery as permit activity normalizes. Continued monitoring of permit volumes, staffing levels, service demands, and fee revenues will be necessary to ensure the fund remains financially sustainable as Paradise transitions from large-scale recovery toward long-term community development and maintenance activities.

Animal Control (2070)
Animal Control was originally envisioned as a service that could be substantially supported through enterprise revenues and Measure N funding. Over time, service expectations, enforcement responsibilities, and operational costs have increased beyond the capacity of dedicated revenue sources alone. Today, Animal Control functions more closely resemble an essential public safety service and increasingly rely on General Fund support. In 2025, the Town’s General Fund contributed over Fund 2030 Ending Balance
FY 21/22 $4.49M
FY 22/23 $5.18M
FY 23/24 $4.7M
FY 24/25 $4.4M
FY 25/26 $2.9M (projected)
FY 26/27 $1.9M (estimated)
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$350,000 towards operations, whereas the pre-fire contribution was minimal.

Key Observation
While Measure N and Measure V revenues continue to provide important financial assistance, future funding strategies may need to recognize Animal Control as a core municipal service rather than a self-supporting operation.

Gas Tax & Transportation Funds
The Town relies on a combination of Highway Users Tax Account (HUTA), Road Maintenance and Rehabilitation Account (RMRA), State Transit Assistance (STA), Local Transportation Fund (LTF), and other transportation-related revenues to support roadway maintenance and transportation infrastructure. Historically, a significant portion of these revenues have been allocated based upon population.

Following the Camp Fire, Paradise experienced a substantial reduction in transportation funding as population-based allocations declined while the Town's responsibility to maintain approximately 100 miles of roadway remained unchanged.

This created a structural challenge in which transportation revenues decreased significantly despite ongoing obligations for roadway maintenance, drainage infrastructure, snow removal, vegetation management, striping, signage, and other public right-of-way services.

Recognizing this challenge, the Town successfully secured supplemental transportation funding from state and federal sources, including a $9.3 million State General Fund allocation administered through Caltrans to support roadway rehabilitation and maintenance activities. These resources have helped offset revenue losses, support maintenance operations, and provide local matching funds necessary to advance larger transportation infrastructure projects.

Key Observation
Transportation funding remains one of the Town's most significant long-term financial challenges. Following the Camp Fire, population-based transportation revenues declined substantially while the Town retained responsibility for maintaining approximately 100 miles of public roadway and associated infrastructure. In response, the Town successfully secured external grant funding to rehabilitate or reconstruct virtually every mile of public roadway damaged by the Camp Fire and subsequent recovery activities. These investments represent a generational improvement to the Town's transportation infrastructure and significantly reduce the immediate burden on local taxpayers.
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As roadway reconstruction efforts are completed, a growing long-term priority will be establishing sustainable funding strategies to preserve these assets. Industry best practices generally recommend that newly rehabilitated or reconstructed roadways receive preventative maintenance treatments, such as slurry seals, micro surfacing, or mill-and-fill projects, approximately every 7 to 10 years to maximize pavement life and avoid more costly reconstruction. Because the Town's roadway rehabilitation program began during the early years of recovery, the first wave of newly reconstructed roads is expected to require comprehensive maintenance beginning around 2030.

While transportation revenues are expected to improve as population and economic activity continue to recover, projected growth in gas tax and related transportation funding sources is not expected to keep pace with the future maintenance demands of Paradise's roadway system. As a result, the Town will need to identify additional long-term funding strategies to preserve roadway conditions and protect the substantial public investment made during recovery.
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FUND GRADES & FUTURE OUTLOOK
Grade Action Item
Town of Paradise A Monitor continued revenue increases
anticipated from recovery progress
PRO Fund A+ Continuing surgical management and cashflow/investment optimization Measure V B+
Sunsets in 2031, consider options to sustain
this invaluable support towards key
community initiatives
Gas Tax & Transportation C
Special gas tax backfill funding exhausted in
2030 and annual road maintenance program
needs to commence in 2029
Building & Wastewater Fund C
Updated Master Fee Schedule needs
adoption. Current fees are reflective of 2017
costs for services.

Animal Control C
Measure N still does not cover operational
costs. General fund is now contributing
annually.

Future Outlook
The Town of Paradise enters the next phase of recovery from a position of relative financial strength. Housing restoration has largely met projected recovery targets, traditional revenues continue to grow, investment performance has exceeded expectations, and the Town has successfully secured substantial external funding to support infrastructure, housing, wildfire resilience, economic development, and community recovery initiatives.

Over the next decade, the Town's focus will gradually shift from rebuilding what was lost to sustaining what has been restored. Major priorities will include maintaining newly reconstructed infrastructure, preserving public service levels, advancing housing production, supporting continued population growth, implementing the Paradise 90 FINANCIAL HEALTH & ORGANIZATIONAL IMPACT REPORT

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Sewer Project, reducing wildfire risk, and ensuring long-term financial sustainability as recovery-related funding sources begin to diminish.

Several important challenges remain. Population recovery continues to lag housing recovery, transportation revenues remain insufficient to fully support future roadway maintenance needs, Measure V is scheduled to sunset in 2031, and federal and state recovery programs will eventually transition toward completion. At the same time, many of the assets and services restored during recovery will require ongoing investment to preserve the progress achieved since the Camp Fire.

Despite these challenges, the Town is better positioned today than many anticipated when the Fiscal Sustainability Model was developed in 2023. Financial resources remain stronger than projected, infrastructure investments are advancing at an unprecedented scale, and the community continues to experience sustained growth and reinvestment.

The success of the Town's recovery strategy should not be measured solely by the resources spent, but by the community that has been rebuilt. Since 2019, Paradise has restored thousands of homes, secured hundreds of millions of dollars in external funding, rebuilt critical municipal services, advanced major infrastructure improvements, strengthened wildfire resilience, and positioned itself for long-term sustainability. The next chapter of Paradise's recovery will focus on protecting those investments, continuing to grow the community, and ensuring that future generations inherit a stronger, safer, and more resilient Town than existed before the Camp Fire.

Key Observation
Paradise is no longer defining success by recovery alone, but by its ability to sustain, invest and build upon the progress achieved since the Camp Fire. 91 Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 6(b)
ORIGINATED BY: Tony Lindsey, CDD Director
Jason Finney, Fire Chief
REVIEWED BY: Jennifer Macarthy, Town Manager
Scott Huber, Town Attorney
SUBJECT: Defensible Space Inspection Program – Staffing Update, Program Performance, and Funding Outlook

LONG-TERM
RECOVERY PLAN:

Yes – Tier 1 Fuels Management Plan
COUNCIL ACTION REQUESTED:

Receive an update on the Defensible Space Inspection Program and provide direction on the following:

1. Convert both limited-term, expiring October 2026, Defensible Space Inspector positions to full-time equivalent positions; or

2. Provide alternative directions as deemed appropriate by the Council.

Background:

The 2018 Camp Fire destroyed approximately 90-95% of the Town's structures and fundamentally transformed the landscape. In the years immediately following the fire, the Town faced compounding challenges: invasive vegetation including broom, grasses, and brushes, rapidly reestablished across thousands of vacant lots, creating dangerous fuel conditions throughout the community.

During this period, a single Fire Prevention Inspector oversaw more than 11,000 parcels while managing private development plan review, fire system inspections, and statemandated occupancy inspections. Many property owners were displaced and preoccupied with insurance claims, debris removal, and rebuilding, making consistent vegetation management difficult to achieve or enforce.

As a result, defensible space compliance remained low in the years immediately following the fire, generally ranging from 47 to 69 percent through 2022.

Analysis:
92 Program Development and Staffing
Beginning in 2022, the Town incrementally strengthened the Fire Prevention Division by adding a second full-time inspector. This allowed the program to transition from a largely complaint-driven enforcement model to a more structured and proactive inspection approach.

A significant operational demand arose when the Town Council initiated the Defensible Space Certificate of Compliance requirement for property transfers, which mandates verification of vegetation management compliance before the sale or transfer of any parcel, rather than relying on Public Resources Code (PRC) 4291, which allowed the work to be done after the close of escrow. While highly effective at improving accountability, this policy generates approximately 122 additional inspections per month, independent of the Town-wide vegetation management inspection cycle.

In 2024, the program was expanded to include two dedicated, limited-term Defensible Space Inspectors and an administrative support position, funded in large part by FEMA Hazard Mitigation Grant Program (HMGP) funds. The administrative support position originated as a grant-funded office assistant role at the program's inception and later transitioned into a full-time Building Division position when a vacancy became available.

This expansion enabled proactive town-wide vegetation inspections, increased enforcement activity, and greater community engagement. Both inspector positions are certified as International Code Council (ICC) Fire Inspector I and Peace Officer Standards and Training (POST) PC 832, providing the technical expertise and enforcement authority necessary for legally defensible compliance actions. Additional support is provided by Fire Prevention and Code Enforcement staff as needed.

The results of this investment have been measurable: compliance improved from below 70 percent in the early post-fire years to approximately 90 percent in 2024 and approximately 95 percent in 2025 – the highest levels recorded since the Camp Fire. 93 Wildfire Risk Reduction
The improvement in defensible space compliance represents a direct and meaningful reduction in wildfire risk across the Town. High compliance rates reduce fuel continuity, limit the potential for structure-to-structure fire spread, and improve the effectiveness of emergency response operations.

These outcomes are especially significant in a community like Paradise, where environmental conditions ensure that wildfire hazard will always exist. While that hazard cannot be eliminated, the Town has demonstrated that sustained enforcement and community engagement can substantially reduce the associated risk. Regression to preprogram compliance levels would reverse this progress and re-expose the community to significantly higher risk conditions.

Insurance Availability and Economic Stability
Wildfire risk is a central factor in insurance underwriting decisions, policy availability, and premium pricing in Wildland-Urban Interface communities. The Town's sustained investment in defensible space compliance contributes to a more favorable risk profile for insurers by reducing the likelihood of structure ignition, limiting fire spread between parcels, and lowering potential loss severity.

While the Town does not control insurance market participation or pricing, maintaining high compliance levels and demonstrating consistency are essential to supporting continued access to private insurance markets and reducing community reliance on lastresort options such as the California FAIR Plan. The Defensible Space Program has also been identified by the Town's Risk Management Division as a key factor in supporting the Town’s request for improved rate consideration, improved coverage, and underwriting consideration for Town-owned facilities.

Beyond insurance, the program supports the Town's broader economic recovery objectives. Reliable insurance availability is essential for financing, property transactions, and development activity. High compliance with defensible space requirements enhances public confidence in the community's safety and livability, supporting continued rebuilding, property values, and long-term economic stability.

Community Engagement and Long-Term Strategy
As the program matures, staff are working toward a more balanced model that pairs enforcement with expanded community education and voluntary compliance initiatives.

Partnerships with CAL FIRE, the Butte Fire Safe Council, and other regional stakeholders support year-round outreach on defensible space maintenance, evacuation preparedness, and wildfire readiness.

The long-term goal is to sustain high compliance rates through a combination of consistent enforcement, ongoing public education, and community ownership of wildfire risk-reduction practices.
94 Policy Alignment
The Defensible Space Program directly implements the objectives of Federal, State, County, and local wildfire mitigation frameworks, including:
 National Cohesive Wildland Fire Management Strategy
 California Wildfire and Forest Resilience Action Plan  Community Wildfire Protection Plan (CWPP)
 Butte County Local Hazard Mitigation Plan (LHMP)
 Town of Paradise General Plan Safety Element and Long-Term Recovery Plan Each of these frameworks identifies vegetation management, defensible space enforcement, community education, and interagency coordination as essential strategies for reducing wildfire risk, improving community resilience, and protecting life, property, and critical infrastructure.

Funding Status and Fiscal Impact
The current program relies on grant funding, primarily from the FEMA HMGP (75%) and the General Fund (25%). The current grant expires September 30, 2026.

Staff submitted an HMGP application to CalOES in March 2025, seeking three additional years of program funding. The project was identified as eligible in September 2025 and forwarded to FEMA for review in March 2026. However, given the extended federal review and award timeline, potential funding from this application is not anticipated until mid-tolate 2027 at the earliest. As a result, continuation of the program during Fiscal Year 2026/2027 would require General Fund support until new grant funding becomes available.

Estimated costs for FY 2026/2027 (two limited-term inspector positions, fully burdened):

Funding Source Jul–Sep 2026 Oct 2026 – June 27 FY 2026–27 Total
FEMA (75%) $35,199 — $35,199
Town Match (25%) /
General Fund
$11,733 $156,440 $168,173*
TOTAL $46,932 $156,440 $203,372
* Fully burdened salary and benefits. Reflects Town 25% match through September 2026, transitioning to 100% Town funding thereafter, pending grant award.

When evaluating a permanent staffing model, consideration must also be given to the long-term financial obligations associated with adding permanent employees. These costs include retirement and retiree healthcare benefits, which vary based on employee classification, bargaining unit agreements, CalPERS contribution rates, and benefit 95 selections.

For retirement benefits, both the Town (7.93%) and the employee (7.75%) contribute a total of 15.7 percent of the employee’s salary to the CalPERS pension system during active employment. Pension benefits are subsequently paid by CalPERS based on the contributions and service credit accumulated throughout the employee’s career; the Town does not make direct pension payments to retirees.

The Town provides other Post-Employment Benefits (OPEB) by paying 80 percent of retiree and spouse medical premiums. Based on 2026 premium rates, the Town’s annual cost for retiree and spouse medical coverage is approximately $22,500 prior to Medicare eligibility (age 65) and approximately $12,800 after Medicare eligibility.

Additionally, in early 2025, the Town expended approximately $269,579 to abate 171 non-compliant properties located adjacent to standing homes. Recovery of those costs through the property tax special assessment process accounted for only $40,470 thus far, resulting in a significant unrecovered expense to the Town. While these abatement efforts increased overall compliance rates by approximately 1.5%, the substantial cost and labor intensity associated with contractor-led abatements underscore the value of proactive enforcement. Continued investment in dedicated defensible space staffing supports early intervention, voluntary compliance, and timely inspections, reducing the need for costly Town-performed abatements while enhancing wildfire risk reduction, community safety, and overall compliance.

Options and Considerations
Option 1 – Make the Defensible Space Inspector positions permanent Convert both limited-term, Defensible Space Inspector positions expiring October 2026 to full-time permanent positions to maintain current service levels and preserve the significant compliance and wildfire risk reduction achieved through the program. This approach avoids regression, sustains enforcement capacity, and positions the program to transition to grant funding when available.

Option 2 – Reduce or Restructure the Program
Provide guidance to staff related to reducing or restructuring the program once the current grant funding for the positions ends in October 2026.

Staff Recommendation
Staff recommends Option 1: Make both Defensible Space Inspector positions permanent, funded through a combination of remaining FEMA grant support and General Fund allocations.

The program's track record demonstrates a clear return on investment. The cost of maintaining these positions is substantially lower than the downstream costs associated with declining compliance, increased abatement activity, emergency response exposure, and the economic consequences of reduced insurance availability. Sustained investment in defensible space enforcement is both a public safety imperative and a fiscally sound risk-management strategy for the Town of Paradise.
96 Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 6(c)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Downtown Plan Phase 3

LONG TERM
RECOVERY PLAN:

Yes
COUNCIL ACTION REQUESTED:

1. Direct staff to hire an Economic Development Coordinator staff position, either as a permanent or limited term position; and
a. Adopt Resolution No. 2026-___ “ A Resolution of the Town Council of the Town of Paradise, California, approving job classification descriptions; and b. Adopt Resolution No. 2026-____, “A Resolution of the Town Council of the Town of Paradise, California, adopting an amendment to the salary pay plan for the Town of Paradise employees for the fiscal year 2025-2026; or

2. Direct staff to issue a Request for Qualifications for a Consultant firm to provide Economic Development Coordination services; or

3. Give alternate direction to staff
Background:

At the May 2026 Council meeting, Urban Design Associates (UDA) presented their Findings for Implementation after studying the downtown area. Several recommendations were made, including an immediate term recommendation to hire an Economic Development Coordinator:

Establish an Economic Development Coordinator Position
This role will serve as the project manager for the Pilot Downtown Activation Project, as well as support the longer-term recommendations listed above.

Analysis:

If approved, the Economic Development Coordinator will:
 Serve as the day-to-day project coordinator for downtown activation and economic recovery projects, including food truck coordination, placemaking, and temporary business activation efforts.
 Support existing businesses and entrepreneurs by assisting with problem solving, resource coordination, Town process navigation, and business retention and expansion efforts.
97  Support implementation of long-term economic development initiatives focused on downtown revitalization, tourism, business attraction, workforce development, and community identity.
 Provides administrative, marketing, communications, and committee support functions, including support for the Economic Development Committee, promotional efforts, research, grant support, and stakeholder engagement.

The Town Council directed staff to evaluate options for implementing a dedicated Economic Development Coordinator function to support business retention, downtown activation, economic recovery, and long-term economic development initiatives. Staff evaluated three potential approaches for providing these services.

Option 1a: Hire a Full-Time Economic Development Coordinator as a Permanent Staff Position
Under this option, the Town would establish and fill a permanent full-time Economic Development Coordinator position within the Recovery & Economic Development Department.

The position would report directly to the Recovery & Economic Development Director and would serve as the day-to-day lead for economic development initiatives, business support activities, downtown activation projects, and implementation of Council priorities related to economic recovery and revitalization.

Pros
 Provides dedicated, long-term institutional capacity for economic development efforts.  Allows the Town to build internal expertise, relationships, and continuity over time.  Creates a consistent point of contact for businesses, developers, community organizations, and partner agencies.
 Supports long-term implementation of Council priorities and strategic economic development initiatives.
 Allows staff to develop in-depth knowledge of Paradise-specific recovery conditions, local business needs, and community dynamics.
 Provides greater direct oversight, accountability, and alignment with Town priorities and organizational culture.
 Enhances the Town’s ability to respond quickly to emerging opportunities, business needs, and economic recovery challenges.
 May provide greater cost stability over time compared to ongoing consultant contracts.  Demonstrates a long-term commitment by the Town to economic recovery and revitalization efforts.

Cons
 Requires long-term personnel funding commitment, including salary and benefits.  Recruitment and hiring process may require additional time before services are fully operational.
98  Position may require additional training and professional development support during implementation.
 Creates an ongoing staffing obligation beyond initial recovery-focused efforts.

Option 1b: Hire a Full-Time Economic Development Coordinator as a Limited-Term Staff Position
Under this option, the Town would establish a full-time limited-term Economic Development Coordinator position for a defined duration.

Pros
 Provides dedicated staff support while limiting long-term financial obligations.  May provide flexibility if future funding sources or organizational needs change.

Cons
 Limited-term nature of the position may reduce applicant pool or make recruitment more challenging.
 May create turnover or continuity challenges if the position expires during active projects or initiatives.
 Reduced long-term stability may impact relationship building with businesses, property owners, and stakeholders.
 Staff knowledge and institutional expertise may be lost at the end of the term.  Does not provide the same level of long-term organizational commitment to economic development initiatives.

Option 2: Hire a Consultant Firm Through a Professional Services Contract Under this option, the Town would contract with a consulting firm to provide economic development coordination and related services through a professional services agreement.

Pros
 May allow for rapid deployment of services without the time required for recruitment and onboarding.
 Provides access to specialized expertise, technical resources, and broader professional networks.
 Allows flexibility in scope of work and contract duration.  Reduces direct personnel management responsibilities for the Town.  May provide access to multiple staff skill sets through a single consulting contract.  Can be scaled up or down depending on available funding and project demands. 99 Cons
 Typically higher hourly costs compared to in-house staffing over time.  Consultants may have limited availability or competing priorities with other clients.  Reduced day-to-day presence and integration within Town operations and community activities.
 Less opportunity to build long-term institutional knowledge and relationships within the community.
 Economic development efforts may be perceived as less community-centered or less accessible to local businesses.
 Consultant contracts may provide less flexibility for evolving daily operational tasks, event coordination, and ongoing business support needs.  May require additional staff oversight and contract management.  Institutional knowledge may not remain with the Town after completion of the contract.

Staff Preferred Option
Option 1a: Hiring a Full-Time Economic Development Coordinator as a Permanent Staff Position.

Staff believes a permanent in-house position provides the strongest long-term value to the Town and best aligns with the ongoing nature of Paradise’s economic recovery and revitalization efforts.

A permanent staff position will provide dedicated daily support for downtown activation efforts, business retention and attraction, implementation of Economic Development Committee priorities, and advancement of long-term strategic initiatives. Staff also believes an in-house coordinator will be better positioned to build trust within the community, respond quickly to emerging opportunities and challenges, and maintain alignment with Town Council priorities and organizational goals.

Financial Impact
This position would be paid for by the Geneal Fund. The salary range established for a coordinator-level position is $73,028 to $93,204, depending on experience. Full benefits at the top of the salary range would bring the yearly cost to $114,974. To hire a contract firm to perform the coordinator role, the expected per hour rate would be between $90-$200, resulting in an annual rate of $187,200 to $416,000.
100

TOWN OF PARADISE
RESOLUTION NO. 26-

A RESOLUTION OF THE TOWN COUNCIL OF THE

TOWN OF PARADISE, CALIFORNIA,

APPROVING JOB CLASSIFICATION DESCRIPTIONS
WHEREAS, it is prudent for the Town of Paradise to periodically review its job classification descriptions of the positions within the Town of Paradise; and WHEREAS, to improve efficiency of certain Town functions and to appropriately reflect the duties and qualifications of its employee classifications.

NOW, THEREFORE be it resolved by the Town Council of the Town of Paradise as follows:

SECTION 1. Job class descriptions in the attached list are approved. Town staff are directed to revise Town employee Classifications based on the attached list.

PASSED AND ADOPTED by the Town Council of the Town of Paradise this 9 th day of June
2026, by the following vote:

AYES:

NOES:

ABSENT:

NOT VOTING:
/s/
Mayor
ATTEST:

By: _ __________/s/___________
Town Clerk
APPROVED AS TO FORM:
/s/
Town Attorney
101
Job Classification Descriptions
Economic Development Coordinator
102
May 2026
FLSA: Non-Exempt

ECONOMIC DEVELOPMENT COORDINATOR

DEFINITION
Under general supervision, provides a wide variety of technical, analytical, administrative, project coordination, and community engagement duties and responsibilities related to economic development, downtown activation, business support, and recovery initiatives; coordinates and implements economic development projects, programs, activities and agreements; acts as liaison for the Town with businesses, property owners, developers, community organizations, contractors, regulatory agencies and the public; assists with marketing, promotion, and event coordination activities; supports the implementation of shortand long-term economic recovery strategies; and performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from the Recovery & Economic Development Director. No direct supervision of staff is exercised but some supervision of part-time, temporary assistance, volunteers, consultants, vendors, and contractors may be exercised as needed.

CLASS CHARACTERISTICS
Assumes lead responsibility in the performance of a wide variety of routine and complex technical and specialized work related to economic development and downtown activation initiatives. Incumbents serve to implement economic recovery and development programs by performing technical, administrative, project management, marketing, and coordination work and are expected to function with very little direct oversight. Successful performance of the work requires interpretation and application of policies, procedures, and regulations and may involve frequent contact with Town departments, the public, business owners, developers, contractors, government officials, community groups, and partner agencies, as well as performing various research, coordination, monitoring, and reporting functions.

The Economic Development Coordinator serves as the day-to-day project coordination for activation projects and initiatives intended to support economic recovery and revitalization following the Camp Fire, with a particular focus on Downtown Paradise and broader townwide economic development efforts.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
 Performs technical assistance and support duties for the Town’s economic development and recovery programs.
 Coordinates downtown activation projects, including temporary and semi-permanent business activation efforts, food truck and vendor coordination, placemaking projects, beautification efforts, pop-up events, and related economic recovery initiatives. 103
Economic Development Coordinator

Page 2 of 4 ends

 Assists in securing and coordinating use of public and private properties for activation projects, community events, and economic development activities.
 Coordinates infrastructure and logistics for activation projects and events, including tents, seating, landscaping, lighting, utilities, signage, sanitation, accessibility, and related amenities.  Coordinates food truck operators, vendors, local businesses, contractors, property owners, partner agencies, and community organizations participating in economic development projects and events.  Assists with planning, organizing, promoting, and implementing community events, business promotions, and economic activation activities intended to support commerce and community engagement.
 Supports existing businesses by responding to inquiries, identifying resources, assisting with problem solving, and coordinating with Town departments and outside agencies to facilitate business retention and expansion.
 Assists prospective businesses, entrepreneurs, and developers with navigating Town processes and connecting with available resources and programs.
 Supports implementation of long-term economic development initiatives and strategic plans focused on business attraction, downtown revitalization, tourism, workforce development, and community identity.
 Conducts research and compiles information related to economic trends, market conditions, demographics, commercial properties, business needs, and funding opportunities.  Assists with preparation of grant applications, reports, presentations, promotional materials, marketing campaigns, and informational content related to economic development and recovery initiatives.
 Assists with management and updates of economic development webpages, social media content, promotional materials, newsletters, and related communications.  Supports the Economic Development Committee by preparing agendas, reports, meeting materials, presentations, follow-up items, and related coordination activities.  Coordinates and participates in meetings with businesses, developers, property owners, community groups, partner agencies, and the public.
 Monitors project schedules, budgets, agreements, deliverables, invoices, and related administrative functions for assigned projects and programs.
 Attends meetings, conferences, workshops, and training sessions and reviews publications and audio-visual materials to become and remain current on principles, practices, and new developments in assigned work areas.
 Acts as the Town’s representative and liaison on relevant topics, including responding to questions and comments from the public in a courteous and timely manner and collaborating with involved parties to reach resolutions on identified issues.
 Performs other related duties as assigned.

QUALIFICATIONS
Knowledge of:
 Organization and function of public agencies, including the role of an elected Town Council and appointed boards and commissions.
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Economic Development Coordinator

Page 3 of 4 ends

 Principles and practices of economic development, downtown revitalization, business retention and attraction, tourism promotion, and community engagement.  Principles and practices of project coordination and event planning.  Basic principles and practices of marketing, branding, communications, and public outreach.  Principles and practices of contract coordination and administration.  Research and reporting methods related to economic development and business support activities.  Techniques for providing a high level of customer service by effectively dealing with the public, businesses, vendors, contractors, and Town staff.
 Effective organizational and time management skills.
 Basic principles of budgeting, record keeping, and project tracking.  Business arithmetic and basic statistical techniques.  The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages, Canva, website and social media platforms) to conduct, compile, and/or generate documentation, reports, presentations, and promotional materials.

Ability to:
 Take the lead on coordinating economic development and downtown activation projects.  Work closely with the Recovery & Economic Development Director to implement economic recovery initiatives and strategic priorities of the Town.  Be self-motivated, willing to make decisions, and detail oriented.  Perform responsible technical support work with accuracy, speed, and minimal supervision.  Provide varied, responsible support work requiring the use of independent judgment, tact, and discretion.
 Develop, interpret, apply, and explain a wide variety of technical policies and procedures and communicate difficult procedures and regulations to those encountered in the course of work.  Interact effectively with the public and employees by communicating both orally and in writing.

Prepare complete and accurate reports.
 Coordinate multiple projects, events, schedules, vendors, and stakeholders simultaneously.  Research, analyze, and summarize data and prepare and present accurate and reliable reports containing findings and recommendations.
 Organize, maintain, and update office databases, records systems, project tracking systems, and contact lists.
 Quickly learn and use new skills and knowledge due to rapidly changing information and/or technology.
 Develop creative alternatives to problem solving and conflicts.  Make accurate arithmetic, financial, and statistical computations.  Understand, interpret, and apply all pertinent laws, codes, regulations, policies, procedures, and standards relevant to work performed.
 Effectively represent the division and the Town in meetings with governmental agencies, community groups, businesses, professional organizations, developers, and the public.  Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
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Economic Development Coordinator

Page 4 of 4 ends

 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Minimum of two years of experience in economic development, project coordination, marketing, event planning, business support services, community development, downtown revitalization, public administration, communications, or a related field; or any equivalent combination of training and experience.

An associate’s degree from an accredited college or university with major course work in public administration, business administration, communications, marketing, economic development, political science, or a closely related field is desirable.

Licenses and Certifications:
 Possession of, or ability to obtain, a valid California Driver’s License by time of appointment and a satisfactory driving record.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; to operate a motor vehicle, to visit various Town and meeting sites and to inspect various residential sites; vision to read printed materials, a computer screen, and to perform inspections; and hearing and speech to communicate in person, before groups and over the telephone. This is primarily a sedentary office classification although standing in work areas and walking between work areas may be required.

Finger dexterity is needed to access, enter and retrieve data using a computer keyboard, typewriter keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects necessary to perform job functions.

ENVIRONMENTAL CONDITIONS
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures. 106

TOWN OF PARADISE
RESOLUTION NO. 26-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE, CALIFORNIA,

ADOPTING AN AMMENDMENT TO THE SALARY PAY PLAN
FOR TOWN OF PARADISE EMPLOYEES FOR THE FISCAL YEAR 2025-2026 WHEREAS, the Town wishes to revise the salary pay plan; and WHEREAS, the salary pay plan will incorporate all salary paid within the Town into one salary pay plan.

NOW, THEREFORE be it resolved by the Town Council of the Town of Paradise, that the Town of Paradise salary pay plan attached to this resolution is hereby adopted.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 9th day of June 2026, by the following vote:

AYES:

NOES: None
ABSENT: None
NOT VOTING: None
_________________________________
Steve Crowder, Mayor
ATTEST:

By: ____________________________
Melanie Elvis, Town Clerk
APPROVED AS TO FORM:
_______________________________
Scott Huber, Town Attorney
107
Head
Count
Auth
FTE's
Budget
FTE
Hours/
Week
A
Step
B
Step
C
Step
D
Step
E
Step
F
Step

1.00 1.00 1.00 ECONOMIC DEVELOPMENT COORDINATOR
HOURLY 40 35.11 36.87 38.71 40.65 42.68 44.81
BIWEEKLY 80 2,808.80 2,949.60 3,096.80 3,252.00 3,414.40 3,584.80 MONTHLY 173 6,085.73 6,390.80 6,709.73 7,046.00 7,397.87 7,767.07 ANNUAL 2,080 73,028.80 76,689.60 80,516.80 84,552.00 88,774.40 93,204.80 Position
Title

TOWN OF PARADISE
SALARY PAY PLAN FY 2025/26
AS OF JUNE 9, 2026
108

Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 6(d)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Emergency Warning Sirens Project Closeout

LONG TERM
RECOVERY PLAN:

Yes
COUNCIL ACTION REQUESTED:

1. Review and receive the FEMA/Cal OES Emergency Warning System (EWS) Project Closeout Report.

2. Provide direction to staff regarding long-term Emergency Warning System maintenance options for inclusion in the Fiscal Year 2026 budget process.

3. Review and provide Council direction regarding any desired modifications to the Emergency Warning System monthly testing procedures moving forward.

Background:

Following the devastating 2018 Camp Fire, the Town of Paradise identified the development of a redundant emergency warning system as one of the highest priorities within the community recovery process. The Emergency Warning System (EWS) project was funded through FEMA Hazard Mitigation Grant Program (HMGP) and Housing and Community Development (HCD) CDBG-MIT funding and includes twenty-one strategically located emergency warning sirens throughout Town limits, along with supplemental ADA-accessible in-home SAFE units. The system has been fully operational for over one year and is tested monthly to ensure readiness.

The project serves as a critical component of the Town’s broader “Alert Paradise” emergency notification strategy
Analysis:

The EWS project has been completed in compliance with all applicable engineering, building, and FEMA HMGP requirements. The system provides a final redundant life-safety notification tool for residents and visitors during emergencies. Construction challenges, including supply chain delays, utility coordination, and site-specific design issues, were successfully addressed through collaboration between the Town, FEMA, CalOES, and HQE Systems.

In addition to the outdoor siren network, the Town council authorized and implemented the SAFE Network consisting of ADA-compliant in-home alert units to improve accessibility and notification coverage in areas with reduced siren audibility. Approximately 420 units of 1,000 delivered to the Town have already been distributed, with additional units planned through future grant funding if needed.
109
Town staff would like to express sincere gratitude to FEMA, CalOES, HCD, HUD, HQE Systems, and the Paradise community for their continued support and collaboration throughout the implementation of this critical public safety project. The successful completion of the EWS reflects a strong partnership and shared commitment to protecting Paradise residents and visitors into the future.

Maintenance Options for Council Consideration
The Emergency Warning Siren maintenance will transfer to the Town beginning in July 2026.

Council direction is requested regarding long-term maintenance and operational funding for inclusion in the upcoming Fiscal Year 2026 budget process. The Town is required to maintain the system under FEMA HMGP grant requirements with the previously approved minimum annual maintenance fund of $8,333.

Other Options for Council consideration include:
 Option A - Full-Service “Bumper to Bumper” Maintenance Agreement – Continue utilizing HQE Systems for comprehensive maintenance, repairs, and technical support. $186,900 per year.
 Option B - Full-Service Lite Maintenance Agreement – Continue utilizing HQE Systems for limited maintenance, repairs, and technical support. $107,300 per year.
 Option C - Maintenance Plan – Time & Materials – Continue utilizing HQE Systems for maintenance, repairs, and technical support as needed.

Unknown expense.

Additional detail on each option is included in the attached report.

Staff Recommendation: Staff recommend utilizing Option C, which would rely on HQE System for maintenance, repairs, and technical support as needed. Staff recommend budgeting $15,000 in the Fiscal Year 26-27 budget for maintenance and repairs to the system. This amount meets the FEMA requirement and has additional funding for maintenance or repair if needed. It is expected that little funding would be needed in the first 1-5 years of the systems operation.

Testing Frequency Considerations
The Emergency Warning System (EWS) is currently tested through a monthly audible community-wide activation conducted on the 15th of each month at noon. Council direction is requested regarding whether any modifications to the current testing frequency are desired moving forward.

Options for Council consideration may include:
 Maintain Current Monthly Testing – Continue monthly audible testing to ensure consistent operational verification and maintain public familiarity with the system.
 Reduce Audible Testing Frequency – Consider quarterly audible testing understanding that silent or internal system diagnostics continue regularly to reduce community disruption.
110
Council direction will assist staff and emergency personnel in establishing long-term testing procedures that balance system reliability, public awareness, and operational efficiency.

Financial Impact:

The Emergency Warning System project was completed under budget, with total project expenditures of $2.74 million compared to the approved project budget of $3.03 million. Project funding consists of 75% FEMA HMGP funding and 25% HCD CDBG-MIT funding, resulting in no significant impact to the Town General Fund beyond future maintenance obligations.

Subrecipient Management Costs (SRMC) also concluded below budget, totaling approximately $110,429 compared to the estimated $150,819.

Ongoing expenses of annual maintenance commitment of $8,333 and will be reviewed as part of the upcoming fiscal year budget process
111

PARADISE EMERGENCY

WARNING SIREN SYSTEM
CLOSEOUT REPORT MARCH 2026
Disaster: 4407 CalOES#: PJ0720
FEMA#: 4407-89F FIPS#: 007-55520

112
Town of Paradise Emergency Warning Sirens
Working together to rebuild a thriving community.

Included Documentation
Section 1: Contractor Procurement
Section 2: Siren Locations
Section 3: Activation Protocols
Section 4: Safe Unit Design and Implementation
Section 5: Inspection Reports
Section 6: Planned Maintenance Activities
Section 7: Project Budget Summary
Section 8: Subrecipient Management Costs (SRMC) Budget Summary Section 9: Sample of Notable Media Coverage
Attachments:

Attachment 1: Town of Paradise EWS Activation Guidelines Attachment 2: Safe Unit FAQs
Attachment 3: HQE Systems Maintenance Options
Attachment 4: Project Budget Summary
Attachment 5: Project SRMC Budget Summary
Attachment 6: Final Claim Form

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Town of Paradise Emergency Warning Sirens
Working together to rebuild a thriving community.

Following the devastating 2018 Camp Fire, the Paradise community expressed a clear and urgent need for a redundant emergency warning system to enhance public safety. The Long-Term Community Recovery Plan, adopted in June 2019, identified the establishment of an emergency notification system as one of the highest priorities in the town’s recovery. During the public engagement process for the Plan, 1,068 of 1,111 comments—representing 96% of respondents—expressed support for the system, demonstrating overwhelming community backing.

The Town of Paradise Emergency Warning System (EWS) now consists of twenty-one strategically placed siren towers within town limits. This system, officially known as the Emergency Warning Sirens (EWS), is a core component of the broader emergency notification strategy, “Alert Paradise.” The EWS serves as a final, redundant alert mechanism, providing residents and visitors with the highest level of notification for potential or imminent hazards threatening life and property. Designed to function in coordination with existing emergency notification systems, the EWS strengthens the town’s emergency preparedness and enhances public safety across Paradise.

Construction of the EWS began in 2022 and, like many projects of its scale, encountered a series of challenges, including supply chain disruptions, tower site and foundation issues, power connection delays, coordination with local utilities, and the design and integration of additional in-home alert devices.

Through proactive collaboration with FEMA, CalOES, and our construction partner HQE, the Town successfully navigated these challenges to bring the project to completion. The system has been fully operational for over 1 year and is now tested every month on the 15th at noon.

This closeout marks not just the conclusion of a FEMA HMGP-funded project, but the realization of a community-driven vision: a resilient, reliable, and highly visible emergency warning system that reflects Paradise’s commitment to protecting its residents and visitors for years to come. The Town of Paradise is grateful for the support of all our partners and are proud to present this final report.

Section 1: Contractor Procurement
In early 2022, the Town of Paradise initiated a competitive Request for Proposals (RFP) process to select a qualified contractor for the construction of the Emergency Warning System (EWS) tower network. The RFP was publicly issued to ensure transparency, attract experienced firms, and secure a contractor capable of delivering a technically complex, community-critical project.

Submissions were evaluated based on qualifications, demonstrated experience with similar emergency warning or tower projects, proposed project approach, schedule, and cost. The evaluation process included a detailed review by Town staff and consultation with technical advisors to ensure alignment with FEMA HMGP requirements and Town objectives.
114
Town of Paradise Emergency Warning Sirens
Working together to rebuild a thriving community.

Following thorough evaluation and consideration of proposals, the Town Council formally selected HQE Systems at the June 28, 2022 meeting. HQE’s experience in tower construction, capacity to address project complexities, and collaborative approach with public agencies positioned them as the ideal partner to deliver the Town’s EWS.

This selection initiated the construction phase of the EWS, setting the stage for the successful implementation of Paradise’s community-driven emergency alert system.

RFP Evaluation Process:

By June 2, 2022 at 4:00 PM, Town staff had received 5 responses to the RFP. • Acoustic Technology Inc (ATI)
• Genasys Inc
• Federal Signal
• Alertus Inc
• HQE Systems
An Evaluation Committee was selected that included:
• Brian Solecki, Town of Paradise Recovery and Economic Development Department • Chief Eric Reinbold, Town of Paradise Police Department • Battalion Chief Rick Manson, CalFire/Town of Paradise Fire Department • Calli-Jane West, Butte Fire Safe Council Executive Director • Josh Jimmerfied, Butte County Director of Emergency Operations The Evaluation Committee received and ranked the proposals according to the criteria provided in the RFP and shown in Table 1.

Table 1: Criteria Weighting Table
Evaluation Criteria Weight
1 Completeness of Response Pass/Fail
2 Understanding the Work to be Done 20
3 Experience with Similar Kinds of Work 20
4 Quality of Staff for Work to be Done 10
5 Familiarity with Federal Funding Procedures 10
6 Financial Responsibility 10
7 Demonstrated Technical Ability 10
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Town of Paradise Emergency Warning Sirens
Working together to rebuild a thriving community.
8 Cost Proposal 20
9 Litigation History Pass/Fail
10 Conflict of Interest Statement Pass/Fail
11 Contract Agreement Pass/Fail
Total: 100
The cost proposal score was determined by FEMA procurement guidelines and scored in direct relation to their variance from the lowest proposed cost based on the average cost. The lowest cost received the maximum score of available points. The cost score was then provided for each firm for all evaluators as noted below in Table 2:

Table 2: Cost Scores From FEMA Calculation Guidelines
Cost Score
FEDERAL SIGNAL 3.4
ATI 5.0
GENASYS 0.0
ALERTUS 3.9
HQE SYSTEMS 4.2
Committee member review of the proposals was performed independently. Weighted criteria were each scored on a scale of 0-5 and multiplied by the weight to provide a score out of 500 available points per evaluator. The final rankings of the 5 proposals are shown in Table 3.

Table 3: Ranking Proposal Scores
CONTRACTOR Evaluator 1 Evaluator 2 Evaluator 3 Evaluator 4 Evaluator 5 Score
Total
HQE SYSTEMS 474 414 463 484 484 2319
ATI 440 400 450 500 480 2270
ALERTUS 378 328 388 468 458 2020
FEDERAL SIGNAL 308 308 446 458 468 1988
GENASYS 340 340 335 400 350 1765
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Town of Paradise Emergency Warning Sirens
Working together to rebuild a thriving community.

After scoring the proposals, the Committee discussed and reached a consensus selection of the top two proposals to move forward to a presentation phase of the evaluation. The evaluation committee’s scores determined two clear top proposals from HQE and ATI. Both firms were requested to provide a 30-minute virtual presentation on their proposal.

Evaluators were requested to choose one firm after both presentations. Positive references were received from provided references and the committee agreed to move forward with HQE as the preferred firm to implement the Early Warning System.

Table 4: Post Presentation Ranking
CONTRACTOR Evaluator 1 Evaluator 2 Evaluator 3 Evaluator 4 Evaluator 5 Final
Rank
HQE SYSTEMS 1st 1st 1st 2nd 1st 1st
ATI 2nd 2nd 2nd 1st 2nd 2nd
The history of the project shows that the Town selection of HQE Systems allowed for an incredible partnership that has worked through many challenges to complete a succesful project that will benefit the community for many years.
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Section 2: Siren Locations
Siren locations were chosen after analysis of the topography and geography of the Paradise ridge. The 21 sirens are located in public rights of way, or on public property, with the goal of providing audible warnings within Paradise Town limits. The tower locations are listed in table 1 below.

Eight siren locations also have traffic cameras installed. These cameras are for Town of Paradise internal use only to monitor traffic and conditions during emergencies. Cameras with visibility to private property will have active private property permanently masked from view of the camera.

The traffic cameras will allow access to direct live-feed video to Town of Paradise emergency personnel..

This video is not recorded by the Town.
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Table 1: Siren Tower Locations
SITE DESCRIPTION LATITUDE LONGITUDE Camera
1 Police Dept – TOP Property 39°45'15.54"N 121°37'27.86"W 2 Pearson & Clark ROW 39°45'7.77"N 121°36'23.77"W Yes
3 Maxwell & Fairview ROW 39°45'47.99"N 121°36'44.46"W
4 Sawmill & Nunneley ROW 39°45'21.00"N 121°35'20.80"W
5 Clark & Bille ROW 39°46'17.52"N 121°35'47.31"W Yes
6 Paradise Town Hall TOP Property 39°44'57.10"N 121°38'0.70"W Yes 7 Russell Drive & Skyway ROW 39°44'42.60"N 121°39'8.53"W Yes 8 Neal & Grinding Rock ROW 39°43'57.97"N 121°39'4.61"W
9 Foster & Apple ROW 39°43'59.55"N 121°38'10.12"W
10 American Way TOP Property 39°44'12.60"N 121°36'36.76"W Yes 11 Bennett & S. Libby ROW 39°44'15.75"N 121°35'38.06"W
12 Pentz & Water Tower ROW 39°44'3.05"N 121°34'24.84"W
13 Pentz & Ely ROW 39°46'36.30"N 121°34'47.03"W Yes
14 Crestmore & Rose ROW 39°45'38.00"N 121°38'18.70"W
15 Bille & West Wagstaff ROW 39°46'13.42"N 121°37'48.39"W 16 Clark & YSK Trail ROW 39°47'45.56"N 121°35'6.62"W Yes 17 Pentz & Peach ROW 39°45'30.40"N 121°34'20.90"W
18 Pentz & Pearson ROW 39°44'52.00"N 121°34'23.30"W Yes 19 Rocky Ln. & YSK Trail ROW 39°46'53.51"N 121°35'53.68"W 20 Gregory & Waggoner ROW 39°46'44.00"N 121°36'47.90"W
21 Roe & Scottwood ROW 39°44'28.26"N 121°37'18.28"W
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The most proximal areas to the towers can expect ~90db emitting from the towers, down to ~60db outside Town limits. The system has been tested and has confirmed volume levels of +110db at 30 meters from the towers and +90db at 400 meters. This system is designed to be audible for residents and visitors who are outdoors when the warning (siren tone or voice command) is given. The audibility levels of the system can vary due to the environment when activated. The system is designed to be one part of our emergency warning system and the last tool to be utilized in an actual emergency.

EWS Siren Tower EWS Siren Tower w/Camera
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Section 3: Activation Protocols
The activation protocols for the Town of Paradise Emergency Warning System (EWS) were developed by the Town of Paradise Emergency Operations Team to ensure a clear, effective, and coordinated response during emergencies. These protocols define the conditions under which the EWS is activated, the responsible personnel, and the step-by-step procedures to ensure timely and accurate notification of residents and visitors.

In October 2024, the Emergency Operations Team presented the finalized activation protocols to the Town Council, which formally adopted them as the official standard for the EWS. These guidelines reflect best practices in emergency management and integrate seamlessly with the Town’s broader emergency notification system, “Alert Paradise,” ensuring redundancy and reliability in times of crisis.

For full details of the activation protocols, please see Attachment #1 – Town of Paradise Emergency Warning System Activation Guidelines.
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Section 4: Safe Units Design and Implementation
During testing and deployment, it became apparent that certain areas of the Town and some newer homes may experience reduced audibility from the siren towers due to topography or construction methods. To address this, the Town, following Council direction, initiated a supplemental component known as the SAFE Network, consisting of in-home units that receive and amplify the EWS signals directly within residences. This addition to the system was possible within the existing budget for the system and approved by our partners at FEMA/CalOES. These units require no professional installation and simply plug into standard electrical outlets, ensuring accessibility and ease of use for all residents.

All safe units are in possession of the Town and distribution of the SAFE units is underway, with nearly 300 units already delivered and assigned to Assessor’s Parcel Numbers (APNs) within the Town. The Town anticipates completing distribution of the initial allotment by fall 2026. Additional funding through HCD CDBG-MIT grants will allow for the purchase of a future batch of units, ensuring the system can continue to meet community needs as the Town grows in the future.

The SAFE Network consists of three key components:

1. SAFE Network Mesh Communications Gateways – Installed at Town Hall, Police/Fire Dispatch, and identified siren tower control cabinets.

2. SAFE Network Mesh Communications Signal Repeaters – Installed in low-signal zones to boost coverage across challenging terrain.

3. SAFE Units – All 1000 units are ADA-compliant and feature both loud audible alerts and visual displays. They integrate with the SAFE Mesh Network, provide battery backup, and plug directly into standard electrical outlets to ensure immediate, accessible use in all homes.

This supplemental system previously approved by FEMA/CalOES significantly enhances the effectiveness of the Town’s EWS, ensuring that all residents—including those with hearing or functional disabilities—are included in emergency alerts. The planned distribution of 1,000 ADA-compliant units is expected to meet the needs of the community for the time being. Additional funds have been secured by the Town through HCD CDBG-MIT funding that will allow for additional units in the future.

Click here for a CalOES Media Team video highlighting the first test of the Safe Units.

For additional information please see Attachment #2 – Safe Unit FAQs 122
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Section 5: Inspection Reports
The Town of Paradise Emergency Warning System (EWS) has been completed in full compliance with all applicable codes, standards, and regulatory requirements. All twenty-one siren towers were designed, engineered, and constructed under the oversight of licensed engineers and in accordance with local building guidelines. All ground disturbing activities were monitored by local tribal partners.

Structural Compliance:
• Tower designs and installations were reviewed and approved by licensed engineers. • Concrete foundations were monitored by Town inspectors, tested, and certified by an independent compliance firm to ensure structural integrity.

Electrical Systems:
• Electrical components and connections were designed and installed by HQE Systems in partnership with PG&E, coordinating with local power hookups and requirements. • Electrical systems comply with current local and state codes and have been verified through inspections by local building officials.

Regulatory Oversight:
• Local building officials conducted inspections throughout all steps of construction to verify compliance with all applicable building and safety standards.

This documentation demonstrates that the EWS project was executed with attention to safety, quality, and regulatory compliance, ensuring a reliable and resilient emergency warning system for the Paradise community.
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Section 6: Planned Maintenance Activities
The Town of Paradise is committed to ensuring the long-term functionality and reliability of the Emergency Warning System (EWS). The system includes built-in self-monitoring capabilities that continuously test all components and automatically alert Town staff if any element is not operating to specification.

In addition to automated monitoring, the Town conducts monthly audible community-wide tests to verify system performance and identify any operational issues. These tests provide an additional layer of assurance that the system remains fully functional and capable of delivering emergency alerts to residents and visitors.

All EWS components are covered under warranty through June 2026, providing additional protection and support during the initial operational period. With the start of the new fiscal year, the Town Council will review and evaluate long-term maintenance options to ensure the continued reliability of the system.

The Town remains fully committed to fulfilling the grant-required maintenance agreement and anticipates exceeding the minimum maintenance level of $8,333 annually, demonstrating a proactive approach to sustaining this critical life-safety infrastructure.

For additional information please see Attachment #3 – HQE Systems Maintenance Options 124
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Section 7: Budget Summary
The Emergency Warning System project was completed under the approved project budget. Total project expenditures were $2,736,171 compared to the approved project budget of $3,026,875 Town staff roles have been compressed to reflect that all project management and administrative responsibilities were carried out by Brian Solecki, Recovery and Economic Development Department Project Manager, and Colette Curtis, Recovery and Economic Development Director. Their roles encompassed overall project oversight, coordination with FEMA and CalOES, contractor management, reporting, and implementation support throughout the project lifecycle.

Similarly, installation-related subcategories have been consolidated to reflect that implementation costs were delivered under the primary contract with HQE Systems. This contract included the full scope of installation activities as well as associated costs such as freight, permitting, and Environmental and Historic Preservation (EHP) compliance requirements, including Tribal monitoring.

For additional information please see Attachment #4 – Project Budget Summary 125
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Section 8: Subrecipient Management Costs (SRMC) Budget Summary Subrecipient Management Costs (SRMC) for the Emergency Warning System (EWS) project totaled $110,429, compared to the original estimated SRMC budget of $150,819, resulting in project management costs that were significantly below the anticipated level.

SRMC expenditures primarily supported the time and effort of Brian Solecki, Recovery and Economic Development Department Project Manager, and Colette Curtis, Recovery and Economic Development Director, who were responsible for the overall administration and management of the grant and project.

Their responsibilities included coordination with FEMA and CalOES, contractor oversight, compliance with HMGP requirements, project reporting, financial tracking, and overall implementation management.

Additional SRMC wage expenditures were charged for Town Public Works staff who supported the project through site inspections, coordination with contractors, and facilitating field-level implementation activities related to the tower installations and supporting infrastructure.

For additional information please see Attachment #5 – Project SRMC Budget Summary

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Section 9: Sample of Notable Media Coverage
• https://www.cbsnews.com/sacramento/news/paradise-new-emergency-warning-system/ • https://www.paradisepost.com/2022/07/16/council-approves-tower-project/ • https://www.news.caloes.ca.gov/early-warning-sirens-in-paradise/ • https://hqesystems.com/press-release-the-town-of-paradise-california-usa/ • https://apnews.com/article/paradise-camp-wildfire-warning-sirens-b4f6a50f7dc5bf1ab4b6f517df2662df • https://hqesystems.com/hqe-systems-enhances-emergency-response-in-paradise-unified-massnotification-system-proves-crucial-during-butte-county-park-fires/ • https://www.actionnewsnow.com/news/free-in-home-emergency-sirens-available-for-paradiseresidents/article_3b0022f3-3c28-4d20-9b28-ac209aa21f17.html • https://apnews.com/article/paradise-camp-wildfire-warning-sirens-b4f6a50f7dc5bf1ab4b6f517df2662df • https://www.kcra.com/article/paradise-california-unveils-new-siren-system-5-years-after-the-campfire/44213061 • https://www.actionnewsnow.com/news/early-warning-siren-test-happening-in-paradise-onthursday/article_0194dfb0-5912-11ef-b0a9-db05008d3651.html • https://www.actionnewsnow.com/news/another-emergency-sirens-test-in-paradise-happened-saturdayafternoon/article_5b752586-1876-11ee-be16-0fbb347c2a2c.html 127
Town of Paradise Emergency Warning Sirens Guidelines
Working together to rebuild a thriving community.

The Town of Paradise Emergency Warning System (EWS) consists of twenty-one siren towers located within the town limits of Paradise, California. This system will be known as the Emergency Warning Sirens (EWS) and is part of the overall emergency notification strategy known as “Alert Paradise”. The purpose of the EWS is to provide a last step, redundant warning system for residents and visitors in Paradise of potential or emergent hazards that threaten life and property. The EWS is designed to work in coordination with existing emergency notification systems and processes and to be the highest level of alert of emergencies.

This document is intended to guide Town Officials in the operation of the Emergency Warning Sirens.

Sections:

Section 1. Siren Locations
Section 2. Activation
Section 3. Siren Tones and Voice Commands
Section 4. Testing Procedure
Section 5. Maps of Tower Activation by Evacuation Scenario Section 1: Siren Locations
Siren locations were chosen after analysis of the topography and geography of the Paradise ridge. The 21 sirens are located in public rights of way, or on public property, with the goal of providing audible warnings within Paradise Town limits. The tower locations are listed in table 1 below.

Eight siren locations will also have traffic cameras installed. These cameras are for Town of Paradise internal use only to monitor traffic and conditions during emergencies. Cameras with visibility to private property will have active private property permanently masked from view of the camera.

The traffic cameras will allow access to direct live-feed video to Town of Paradise emergency personnel..

This video is not recorded by the Town. Upon a reasonable belief that some video footage may hold evidentiary value, the Town Manager or his/her designee may endeavor to obtain that video footage from the camera itself. In the event that video footage with evidentiary value is obtained, it shall be retained pursuant to Government Code section 34090 and shared to the appropriate party or agency.

Attachment #1
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Table 1: Siren Tower Locations
SITE DESCRIPTION LATITUDE LONGITUDE Camera
1 Police Department – TOP Property 39°45'15.54"N 121°37'27.86"W 2 Pearson & Clark ROW 39°45'7.77"N 121°36'23.77"W Yes
3 Maxwell & Fairview ROW 39°45'47.99"N 121°36'44.46"W
4 Sawmill & Nunneley ROW 39°45'21.00"N 121°35'20.80"W
5 Clark & Bille ROW 39°46'17.52"N 121°35'47.31"W Yes
6 Paradise Town Hall TOP Property 39°44'57.10"N 121°38'0.70"W Yes 7 Russell Drive & Skyway ROW 39°44'42.60"N 121°39'8.53"W Yes 8 Neal & Grinding Rock ROW 39°43'57.97"N 121°39'4.61"W
9 Foster & Apple ROW 39°43'59.55"N 121°38'10.12"W
10 American Way TOP Property 39°44'12.60"N 121°36'36.76"W Yes 11 Bennett & S. Libby ROW 39°44'15.75"N 121°35'38.06"W
12 Pentz & Water Tower ROW 39°44'3.05"N 121°34'24.84"W
13 Pentz & Ely ROW 39°46'36.30"N 121°34'47.03"W Yes
14 Crestmore & Rose ROW 39°45'38.00"N 121°38'18.70"W
15 Bille & West Wagstaff ROW 39°46'13.42"N 121°37'48.39"W 16 Clark & YSK Trail ROW 39°47'45.56"N 121°35'6.62"W Yes 17 Pentz & Peach ROW 39°45'30.40"N 121°34'20.90"W
18 Pentz & Pearson ROW 39°44'52.00"N 121°34'23.30"W Yes 19 Rocky Ln. & YSK Trail ROW 39°46'53.51"N 121°35'53.68"W 20 Gregory & Waggoner ROW 39°46'44.00"N 121°36'47.90"W
21 Roe & Scottwood ROW 39°44'28.26"N 121°37'18.28"W
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Town of Paradise Emergency Warning Sirens Guidelines
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EWS Siren Tower EWS Siren Tower w/Camera
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Town of Paradise Emergency Warning Sirens Guidelines
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Section 2: Activation
Standardized signals for Emergency warning devices have been established by the Federal Emergency Management Agency (FEMA). Additional information on policies and guidelines for Emergency Warning Systems can be found in the FEMS CPG 1-17 Outdoor Warning Systems Guide and the 2019 CA Alert Warning Guidelines. These standard guidelines have been incorporated in this document.

EWS Activation Procedure
In the event of an evacuation order being issued, the Emergency Warning Sirens will be activated at the direction of the Paradise Police Chief or their designee. The Police Chief or their designee will work in partnership with other emergency personnel to make the following two determinations:

1. Zone Determinations: Which evacuation zone(s) will be issued an evacuation warning and which evacuation zone(s) will be issued an evacuation order.

2. Scenario Determination: Which of the 8 Evacuation Scenarios best reflect the current emergency and should be activated by dispatch.

The activation process will be initiated by Town of Paradise Police Department Dispatch Center once approval has been granted:
• Level 1 EWS Activation: If 1,2 or 3 zones are ordered for evacuation, The EWS towers preidentified and coordinated with the selected Town Evacuation scenario would be activated. • Level 2 EWS Activation: If 4 or more zones are ordered for evacuation, all towers would be activated.

All Evacuation scenarios will be pre-programmed into the EWS control system for quick activation in the event of an emergency. Scenario maps provided in section 6.

Scenario 1 – Butte Creek Canyon
Evacuation Zones 1 and 4
Towers 3, 14, 15, 16, 19, 20
Scenario 2 – Lower Skyway/Neal Road
Evacuation Zones 9, 10 and 11
Towers 1, 6, 7, 8, 9, 21
Scenario 3 – Butte Valley/Lower Clark
Evacuation Zones 11, 12, and 13
Towers 2, 6, 9, 10, 11, 12, 18, 21
Scenario 4 – West Branch/Lower Pentz
Evacuation Zones 8, 13, and 14
Towers 11, 12, 17, 18,
Scenario 5 – West Branch/Concow
Evacuation Zones 3, 8 and 14
Towers 12, 13, 16, 17, 18,
Scenario 6 – Magalia
Evacuation Zones 1, 2 and 3
Towers 5, 13, 15, 16, 19, 20
Scenario 7 – Central Paradise
Evacuation Zones 5, 6 and 7
Towers 1, 2, 3, 4, 5, 17, 18
Scenario 8 – All Towers/All Zones (no
map included)
Evacuation Zones 1-14
Towers 1-21
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The process flow is shown visually below:

The Emergency Warning Sirens are only intended to be activated in a true emergency in which an evacuation has been ordered. No towers will be activated for evacuation warning(s). Additional notification and information channels are to be used prior to and in tandem with the siren towers. This emergency communication framework is known as Alert Paradise. The activation of the EWS is intended to indicate to all residents and visitors to seek further emergency information through radio, television, social media, or other channels.

Depending on the emergency, different levels of public notification will be appropriate. Activation of the Emergency Warning Sirens will be used for evacuation orders. The following table illustrates the hierarchy of notification channels within Alert Paradise. Once a notification channel is activated, all those below it in the hierarchy should also be utilized.

Alert Paradise Notification Hierarchy
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Section 3: Siren Tones and Voice Commands
Any activation of the EWS will include both siren tone and voice command. It is understood that sirens may be audible for a distance beyond the immediate area for which the notification is intended, and clear instruction through the voice commands and on other communication channels will be important for the system to be used effectively.

Emergency Activation Siren and Voice
Immediate Evacuation Orders will prompt the activation of the Emergency Warning Sirens. A 1-minutelong siren tone will indicate residents should evacuate immediately. The siren tone will then be followed by a Voice Command telling residents to evacuate. The default voice command will be “A mandatory evacuation order has been issued” The protocol will be as follows:

Siren Tone for a 1-minute duration
Voice Command:

Siren Tone for a 1-minute duration
This siren cycle will repeat until suspended by order of the Police Chief.

Section 4: Testing Procedures
The EWS will be tested both internally and externally. The EWS towers have built in internal testing that occur regularly and additional Internal-only tests will be performed periodically and will be done silently to test functionality but will not be audible to the public.

Audible tests will be performed monthly, on the 15th of each month at 12:00 pm. The public will be notified of these tests in advance, with press releases, social media posts, website information, and Code Red notifications sent prior to testing. The testing protocol will be as follows:

Voice Command: This is a test of the Paradise Emergency Warning Sirens Siren Tone for a 30-second duration
Voice Command: This was a test of the Paradise Emergency Warning Sirens. 133
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Section 5: Maps of Tower Activation by Evacuation Scenario 134

PARADISE

BUTTE CREEK
CANYON

MAGALIA
SKYWAY
191
PE-380
MA-287
CSE-361
MA-290
MA-289
MA-291
BV-466
CSE-365
BV-465
CSE-368
BV-464
MA-288
MA-292
MA-286
TOP-01
PE-381
TOP-10
TOP-11
BV-463
TOP-13
TOP-14
TOP-02
TOP-03
TOP-04
TOP-05 TOP-06 TOP-07
TOP-08
TOP-09
CON-507
BV-461
BV-462
CON-509
FR-273
CON-503
CON-508
CON-501
TOP-12
CSE-364
CSE-367
CSE-363
SKYWAY

CLARK RD

PENTZ RD

PARADISE

BUTTE CREEK
CANYON

CLARK RD

PENTZ RD

PARADISE

BUTTE CREEK
CANYON

CLARK RD

PENTZ RD

PARADISE

BUTTE CREEK
CANYON

CLARK RD

PENTZ RD

PARADISE

BUTTE CREEK
CANYON

CLARK RD

PENTZ RD

PARADISE

BUTTE CREEK
CANYON

CLARK RD

PENTZ RD

PARADISE

BUTTE CREEK
CANYON

CLARK RD

PENTZ RD

NEAL RD
0 0.5 1
Miles
Town of Paradise
Evacuation Zones
Scenario Fire Threat
Anticipated Resource Ingress
Route
Anticipated Egress Route
Potential One-Way Evacuation
Egress Route
LEGEND
Emergency Evacuation Review
Scenario 7 Central Paradise
Default Folder: J:\Paradise-SA-21111-TMP (EDA) TO #2\Graphics and Visualizations\GIS\Paradise TMP TO2 # TOP Emergency Warning Sirens
Towers 1, 2, 3, 4, 5, 17 & 18
5 2
18 1
3 4 17
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Frequently Asked Questions
FAQ
Attachment #2
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1 General Information
What makes the SAFE Network™ different from existing
systems?
The SAFE Network™ is a public safety communication system designed to deliver reliable alerts during emergencies. It operates on its own resilient communications network and power system to ensure uninterrupted communications even during disasters, when traditional communications and power may be interrupted.

Unlike traditional systems, the SAFE Network™ integrates multiple communication technologies such as radios, cellular, internet, satellite, and other legacy and modern communication channels. It operates independently and features long-lasting battery-backed devices, like SAFE Units™, to ensure functionality during power outages.

The SAFE Network™ provides extended coverage to existing emergency mass notification and sensor management systems, which often fail during disasters. It ensures comprehensive public safety by covering areas with limited or no cellular service and extending coverage slightly beyond community boundaries to assist residents during evacuations.

FAQ SAFE
NETWORK™
What is the SAFE Network™?
Why is our municipality installing the SAFE Network™?
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SAFE Units™: Overview and Usage
What is a SAFE Unit™?
How does a SAFE Unit™ work?
SAFE Units™ are compact indoor devices that provide visual and audio alerts during emergencies. They are designed to keep residents informed, even if cellular or internet-based alert systems fail.

SAFE Units™ receive alerts directly from the SAFE Network™ using independent signals. They function exclusively within the SAFE Network's coverage area, which includes the community and a buffer zone for evacuation scenarios.
2 FAQ
General Information
Regarding the coverage area for the SAFE Network, do you anticipate any topography challenges covering the entire city?
All wireless systems are affected by topography. The SAFE network uses a frequency that is less susceptible to geographic and topographical obstructions than other RF options. Although the town does not anticipate any significant coverage issues, coverage is still not 100% guaranteed.

SAFE
NETWORK™
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SAFE Units: Overview and Usage
FAQ
Can I move my SAFE Unit™ to another location?
No, although the SAFE Units™ are portable and can be moved within the SAFE Network’s coverage area, each unit is attached to an APN and will be registered to a geographical address within the town.

The SAFE Units™ will not function outside the SAFE Network™ coverage area.

Can I purchase additional SAFE Units™ for my home or others? Yes, residents can purchase additional SAFE Units™ for personal use or to provide to family and friends within the SAFE Network’s coverage area. Contact your municipality or HQE Systems for purchasing information.

Where should I place my SAFE Unit™?
Place the SAFE Unit™ in a central, easily visible location to ensure that alerts are noticed by all household members. Avoid areas with obstructions that might block sound or visibility.

Can SAFE Units™ be used outside the SAFE Network™?
No, SAFE Units™ only work within the SAFE Network's coverage area.

However, the network provides slightly extended coverage to assist with evacuations.

SAFE
NETWORK™
145
What languages are available?
What happens if there is a false alarm?
SAFE Units support multilingual alerts to serve diverse communities.

Check with your municipality for available language options.

In the rare case of a false alarm, a follow-up notification will clarify the situation promptly.

FAQ
Can I customize alert types or notifications?
Alert types are set by the municipality to ensure consistency. You can adjust volume and brightness settings but cannot filter alert categories.

Will I receive alerts for non-emergency situations?
Other than regularly scheduled siren testing, the Town of Paradise will not use the sirens in non-emergency situations.
3Alerts and Notifications
What types of alerts will I receive on the SAFE Unit™ ? At this time, the Town of Paradise will only be using the SAFE Units™ for evacuation orders within the town. In the future, additional alerts such as severe weather warnings, wildfire alerts, shelter-in-place instructions, and other critical safety notifications could be utilized.

SAFE
NETWORK™
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Accessibility Features
How will I know the SAFE Unit™ is functioning during an emergency?
SAFE Units™ will alert during a regularly scheduled test if the Emergency Manager has opted to test the SAFE units simultaneously with the sirens. This is at the discretion of the emergency manager. The SAFE unit will display and sound the test message. During normal standby mode, the SAFE unit will display a status indicator on the screen giving its health condition at all times.

Does the SAFE Unit™ support residents with auditory and vision disabilities?
Yes, SAFE Units™ include both audible and visual alerts, ensuring accessibility for individuals with hearing or vision impairments.

However, they do not feature braille support.
4 Emergency Scenarios
How does the SAFE Network™ help during evacuations?
The SAFE Network™ provides real-time updates on evacuation routes, road closures, and impacted areas. SAFE Units™ remain operational within the network’s slightly extended coverage area to assist evacuating residents.
5 FAQ SAFE
NETWORK™
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6 Installation and Maintenance
What should I do if my SAFE Unit™ activates during an
emergency?
How do I install the SAFE Unit™?
Will the SAFE Unit™ work during power outages?
Follow the instructions provided through the alerts. These may include evacuation orders, shelter-in-place guidance, or other critical actions.

Plug the SAFE Unit™ into a standard wall outlet. No special installation is required.

Yes, SAFE Units have a battery backup that can operate for up to 10 days on standby or 72 hours of continuous alerts.

Emergency Scenarios
FAQ
Can SAFE Units™ help in areas with no cellular signal?
Yes, the SAFE Network™ is designed to operate independently of cellular systems, ensuring coverage in areas with poor or no signal.

SAFE
NETWORK™
148
Privacy and Security
Does the SAFE Unit™ track my location or data?
How secure is the SAFE Network™?
No, SAFE Units™ do not collect, store, or transmit personal data. They only receive alerts broadcast through the SAFE Network™.

While no system is 100% secure, the SAFE Network™ employs advanced encryption. Users should ensure devices are not tampered with or connected to unauthorized networks for optimal security. 7 Installation and Maintenance
Who should I contact for technical issues?
Contact your municipality’s support line or HQE Systems’ 24/7 technical support (https://hqe.my.site.com/Support/)
FAQ
How do I know if my SAFE Unit™ is operational?
You can press the green button to activate the screen, which will display "SAFE Network™" when properly connected.

SAFE
NETWORK™
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Community Engagement and Training
Will user manuals be provided?
Yes, municipalities will provide user manuals. These can also be downloaded from HQE Systems’ SAFE Network™ website.
https://hqesystems.com/safe-paradise/
9 Is there a cost for the SAFE Unit™?
Do I own the SAFE Unit™, or is it leased?
SAFE Units™ can be purchased by states, cities, counties or directly by homeowners. Please check with your local emergency management office if subsidizing is available.

Please visit https://hqesystems.com/safe-paradise/ for purchasing information Devices are purchased to own directly by homeowners, and are not leased.
8 Costs and Ownership

FAQ SAFE
NETWORK™
150
Compatibility and Future Updates
Will SAFE Units™ receive software updates?
Are SAFE Units™ compatible with smart home devices?
No, SAFE Units™ are pre-configured and do not require updates.

Not at this time. SAFE Units™ are dedicated emergency devices designed to function independently.
10 How can I help others in my community with SAFE Units™? Encourage neighbors to purchase their own devices and attend training sessions or share available resources to ensure preparedness.

Community Engagement and Training

FAQ SAFE
NETWORK™
151
What should I do if my SAFE Unit™ stops working?
Ensure it is plugged in and check the indicator light.

Contact support if issues persist.
https://hqe.my.site.com/Support/
11 Troubleshooting and Support

FAQ SAFE
NETWORK™
152
website at Town of Paradise
For more information
(310) 377-1521
153
EWS Bumper-To-Bumper Maintenance Plan
Town of Paradise, CA
Proposal Reference Number: 006cw00000FxEcb
Date Submitted: February 12th, 2025
Version: 2
Prepared For
Town of Paradise
ATTN: Mr. Brian Solecki
POC Phone: (530) 872-6291
POC Email: [email protected]
5555 Skyway
Paradise, CA 95969
Approved By
HQE Systems, Inc.

POC Name|Title: Qais Alkurdi | CEO
POC Phone: (800) 967-3036
POC Email: [email protected]
27348 Via Industria, Temecula, CA 92590

PROPRIETARY INFORMATION
Attachment #3
154
Town of Paradise
Paradise, CA
_____________________________________________________________________________________ Legal Disclaimer
This proposal contains proprietary and confidential information owned by HQE Systems, Inc. Unauthorized disclosure, copying, distribution, or use of this document, in whole or in part, is strictly prohibited and may result in legal action, including but not limited to injunctive relief, financial damages, and the recovery of attorney’s fees. The Client shall be liable for damages for any unauthorized disclosure, in addition to any actual damages incurred by HQE. If a version of this document must be shared, the Client must request a sanitized copy by contacting [email protected]. By accessing, reviewing, or considering this proposal, the Client agrees to the following: This proposal is for informational purposes only and does not constitute a binding agreement. No contractual relationship exists until a formal, written agreement is signed by an authorized HQE Systems, Inc. (“HQE”) representative. HQE reserves the right to modify or withdraw this proposal at any time without notice or liability. The Client acknowledges that no statements, descriptions, pricing, or specifications in this proposal shall be relied upon as a promise or commitment by HQE. The Client expressly waives any claim of reliance on the information contained herein. This proposal contains proprietary and confidential information. Unauthorized disclosure, distribution, or reproduction is strictly prohibited.

The Client may not share this proposal with any third party without HQE’s prior written consent. Any unauthorized disclosure may result in legal action, including injunctive relief, financial damages, and recovery of legal fees. If the Client does not agree to these confidentiality terms, this document must be deleted or destroyed immediately. The Client may not use HQE’s name, logo, or proposal content in any marketing, public statements, or third-party discussions without HQE’s prior written approval. Any third-party brands, logos, trademarks, or product images used in this proposal are for informational purposes only and do not imply sponsorship, endorsement, or affiliation. The Client agrees to indemnify, defend, and hold HQE harmless from any claims, disputes, or legal actions arising from the unauthorized use, misrepresentation, or reliance on third-party trademarks or references. All products, software, and services are provided “as is” without warranty. HQE does not guarantee uninterrupted operation, error-free performance, or fitness for a particular purpose. The Client assumes all risks related to the selection and use of HQE’s products and services. By accessing this proposal, issuing a purchase order, or awarding a contract to HQE, the Client automatically accepts and agrees to HQE’s Service Level Agreement ("SLA"), available at www.HQESystems.com/SLA. No additional signature is required—acceptance is automatic. HQE is not responsible for ensuring the Client has read the SLA. The Client waives any claim of not receiving or reviewing the SLA. HQE shall not be liable for indirect, incidental, consequential, special, or punitive damages, including lost profits or data loss. Total liability is strictly limited to the lesser of (a) the total amount paid to HQE for the proposed services or (b) $10,000. HQE is not liable for delays or failures caused by events beyond its control, including but not limited to natural disasters, cybersecurity incidents, supply chain disruptions, or government actions.

This proposal and any disputes arising from it shall be governed exclusively by the laws of California, without regard to conflict of law principles. The exclusive venue for any disputes shall be the state or federal courts of Riverside County, CA, and the Client waives any objection to jurisdiction or venue. The Client is solely responsible for compliance with all applicable laws and regulations, including but not limited to FAR, DFARS, ITAR, GDPR, CCPA, HIPAA, NIST 800-171, and any other compliance requirements it may require. HQE is not liable for any non-compliance penalties or fines imposed on the Client. The Client shall not copy, reproduce, reverse engineer, or otherwise use this proposal or its contents for any purpose other than evaluating HQE’s offerings. Any misuse of this proposal, including sharing with competitors or using HQE’s proprietary methodologies for commercial advantage, shall result in legal action. This legal notice constitutes the entire understanding between HQE and the Client regarding the terms of this proposal. No verbal agreements or modifications shall have legal effect unless confirmed in writing by HQE.

HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 1 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 155 Town of Paradise
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_____________________________________________________________________________________ Table of Contents

1. Cover Letter 3
Why Choose HQE’s MNS Installations and Upgrades? 3

2. HQE Systems, Inc. – Comprehensive In-House Capabilities 4 Products & Services 4

3. Project Approach 5

4. About HQE Systems 7
Why HQE is the Right Partner 7
Exceptional Past Performance 8
Comprehensive Customer Support Services 9
Attachment 1: HQE Systems, Inc. - Standard Terms & Conditions / SLA 11 HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 2 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 156 Town of Paradise
Paradise, CA
_____________________________________________________________________________________

1. Cover Letter
Thank you for considering HQE Systems, Inc., a Minority-Owned, Disabled Veteran Business Enterprise (DVBE), as your trusted partner for providing the most advanced Electronic Security Systems (ESS) installations and upgrades. Our comprehensive solutions for Visual Surveillance Systems (VSS), Access Control Systems (ACS), and Intrusion Detection Systems (IDS) are designed to enhance the safety and security of your organization, delivering cutting-edge technology to protect people, property, and operations effectively.

Why Choose HQE’s MNS Installations and Upgrades?

1. Advanced Outdoor Warning Sirens: High-powered sirens delivering clear voice and tone alerts across wide geographic areas, even in adverse weather conditions. These systems are designed to replace aging infrastructure or serve as new installations, providing optimal sound coverage and geo-targeted alerting capabilities.

2. Efficient Indoor Public Address Systems: Seamless communication within buildings, including pre-recorded or live voice announcements, ensuring rapid dissemination of critical information. These systems are ideal for new installations or upgrades to enhance the clarity and reach of alerts in enclosed spaces.

3. Mobile Siren Trailers: Portable and versatile alerting solutions for temporary or supplemental emergency communication needs, offering flexibility for events, construction sites, or areas without permanent systems.

4. Seamless System Integration: HQE’s MNS solutions integrate effortlessly with your existing infrastructure, including fire alarms, access control systems, and digital signage, ensuring a unified emergency response platform.

5. Customizable and Scalable: Our systems are designed to grow with your organization, allowing for easy expansion or adaptation to evolving safety requirements.

6. Compliance and Reliability: All systems adhere to the latest FEMA, OSHA, and NFPA standards, ensuring full regulatory compliance. Durable components and redundant power options provide 24/7 operational reliability, minimizing the risk of downtime during critical moments.

This proposal is valid for 60 days, and pricing is subject to change after the validity date.

Point of Contact: Micah Reedy
Phone: (704) 794-4587
Email: [email protected]
Thank you for this opportunity, and we look forward to working with you.

Sincerely,
Qais Alkurdi
Chief Executive Officer
Retired / Disabled Veteran
HQE Systems, Inc.

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_____________________________________________________________________________________

2. HQE Systems, Inc. – Comprehensive In-House Capabilities At HQE Systems, Inc., we deliver integrated, turnkey solutions for your security, safety, and mass notification needs. Our services streamline operations, lower costs, and ensure your organization is protected and prepared.

Products & Services
● Mass Notification Systems (MNS): Clear and timely communication across any environment. ○ Outdoor Systems: Sirens and voice-tone systems for wide-area alerts with real-time monitoring.
○ Indoor Systems: Public address, digital signage, and networked TVs for internal messaging. ○ Electronic Alerts: FEMA IPAWS-compliant SMS, email, voice calls, and social media integration.
● Electronic Security Systems (ESS): Advanced solutions to protect people, property, and operations. ○ CCTV Systems: High-definition video surveillance for monitoring and analysis. ○ Access Control: Secure entry points with credentialing and monitoring. ○ Intrusion Detection: Automated alerts for unauthorized access. ● Software Engineering: Custom software to optimize performance. ○ Custom Applications: Scalable and tailored to your needs. ○ AI-Driven Technology: Automate decision-making and improve efficiency. ○ Seamless Integration: Smooth connectivity across platforms. ● Technical Services: Installation, upgrades, and long-term maintenance. ○ Preventive Maintenance: Regular checks to address issues early. ○ Upgrades: Transition to state-of-the-art systems with minimal disruption. ○ Corrective Maintenance: Rapid action to restore functionality. ● Consulting Services: Expert guidance in IT, MNS, ESS, and safety/security strategies.

HQE Systems delivers innovative, reliable solutions to protect people, property, and operations.

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_____________________________________________________________________________________

3. Project Approach

3.1 Early Warning System (EWS) – Post-Warranty Maintenance Options Early Warning System Support Options: Side-by-Side Comparison # Category OPTION A
Maintenance Plan
Full
Bumper-to-Bumper

OPTION B
Maintenance Plan
LITE

OPTION C
Maintenance Plan
Time & Materials
1 Annual Cost Structure Fixed
Annual Fee
Lower Fixed
Annual Fee
No
Annual Fee
● A) Semi-Annual Visit Plan (2 visits) ● $186,898.23 / YR ● $107,268.93 ● Per Visit ● B) Quarterly-Annual Visit Plan (4 visits) ● $216,801.94 / YR ● $136,872.52 ● Per Visit 2 Preventative Maintenance
(reduces hardware failure rates)
Included (Scheduled
& Documented)
Included (Scheduled
& Documented)
Not Included (Upon
Request)
3 Corrective Maintenance Visits Unlimited Unlimited Billed Per Visit 4 Labor Costs Included Included Billed at Daily Rate
5 Replacement Parts Included Town Pays Town Pays
6 Major Component Replacement
(Speakers, Amplifiers, Controllers,
ACMs, Power Systems, SAFE Network)
Included Town Pays
Hardware Only
Town Pays
Hardware + Labor
7 Battery Replacement Included Town Pays Town Pays
8 Remote Diagnostics Included Included $450 Per Incident 9 On-Site Dispatch Included (Within 24
Hours After
Diagnostics)
Included (Within 24
Hours After
Diagnostics)
Billed Per Visit
(Labor, Parts, Lift)
10 Service Priority Level Priority Scheduling Priority Scheduling Standard Scheduling (First
Come / First
Served)
11 System Uptime Protection Level Maximum
Protection
High Protection Variable / Reactive
12 Who Assumes Hardware Failure
Risk?
HQE Town Pays Town Pays
13 Estimated Cost of Major Failure
Event to Town
$0 $6,000 – $35,000
(Hardware Only)
$15,000 – $40,000+
(Hardware + Labor)
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_____________________________________________________________________________________ 14 5-Year Cost Predictability Fully Predictable Predictable (Hardware Variable)
Unpredictable
15 Administrative Burden Low Moderate High
16 Financial Risk to Town Low Moderate High
Current Time & Materials Rates (Option C Reference)
● Full Day On-Site: ~ $1,544.86 (add $650 / day for bucket truck requirements) ● Half Day On-Site: ~ $926.92 (add $650 / day for bucket truck requirements) ● Remote Support: ~ $450 per incident (during work hours), ~ 575 per incident (after work hours) Important Planning Consideration
Outdoor Early Warning Systems operate continuously in demanding environmental conditions, including extreme temperatures, UV exposure, moisture, and electrical fluctuations. Over a typical 5 to 15 year lifecycle, periodic component replacement, including batteries, amplifiers, controllers, and communication modules, is normal and expected based on system usage and environmental exposure.

The long-term performance and longevity of these components are significantly influenced by the frequency and quality of preventative maintenance performed each year. Proactive maintenance helps identify wear conditions early, extend equipment life, and reduce the likelihood of unexpected system failures.

3.2 Payment Terms & Conditions
Payment Structure
● 100% of the annual contract amount is due upon contract award and formal acceptance by the Town. ● Payment terms are NET 30, meaning payment is due within thirty (30) calendar days from the date of invoice.
● Services will commence upon receipt of payment unless otherwise agreed to in writing.

Coverage Limitations & Exclusions
The maintenance options described herein are intended to cover normal wear, component failure, and operational support of the Early Warning System under standard operating conditions. The following are not covered under any maintenance option unless expressly stated otherwise in a separately executed agreement:
● Acts of God, including but not limited to wildfire, flooding, lightning strike, earthquake, hurricane, or other natural disasters
● Vandalism or intentional damage
● Vehicle strikes or structural impact damage
● Third-party damage or tampering
● Power surges caused by external utility failure
● Total site destruction
● Unauthorized modifications performed by parties other than HQE ● Damage resulting from misuse, negligence, or failure to follow operating procedures Repairs required due to the above exclusions will be quoted separately and billed at applicable Time & Materials rates unless otherwise covered by insurance.

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_____________________________________________________________________________________

4. About HQE Systems
HQE Systems, Inc. is a Minority-Owned, Disabled
Veteran Business Enterprise (DVBE) with over a
decade of experience delivering innovative,
high-performance solutions for emergency alert,
security, and communications systems. With a
proven record of executing over 100 large-scale
projects, HQE has earned its reputation as a
trusted partner in the design, installation,
integration, and maintenance of systems critical to
safety and operational success.

HQE excels in addressing complex technical
requirements, offering solutions that are fully
compliant with industry standards such as FEMA
IPAWS, NFPA 72, ADA, and Department of Defense
cybersecurity certifications. Our approach ensures
not only system performance but also long-term
reliability, scalability, and value.

Why HQE is the Right Partner
● Proven Expertise Across Disciplines: HQE combines expertise in Mass Notification Systems (MNS), Electronic Security Systems (ESS), and advanced software development. This allows us to provide integrated, turnkey solutions tailored to meet specific client requirements, reducing complexity and ensuring seamless system performance.
● Financial Stability: HQE’s strong financial foundation and resource availability enable us to manage projects of any size without delays or disruptions. Our financial resilience ensures that your investment is secure and that we can deliver on-time and within budget. ● Commitment to Compliance: Our deep understanding of industry standards ensures that every system we design and deploy meets or exceeds regulatory requirements. Whether it’s emergency HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 7 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 161 Town of Paradise
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_____________________________________________________________________________________ notification compliance with FEMA IPAWS or cybersecurity protections mandated by the Department of Defense, HQE has the expertise to navigate and address complex compliance landscapes. ● Scalable and Future-Ready Solutions: HQE designs systems with scalability in mind, ensuring that they can grow alongside your organization’s evolving needs. Whether upgrading legacy systems or preparing for future expansions, HQE ensures you stay ahead of industry advancements.

Dedicated, Certified Team: Every HQE project is handled by a team of certified professionals with deep expertise in safety and security systems. Our staff includes:
● Certified Systems Engineers: Experts in designing and integrating compliant MNS and ESS solutions. ● PMP Certified Project Managers: Skilled leaders who ensure projects are delivered on time and within budget.
● Certified Installation Specialists: Trained low and high-voltage technicians who meet all client and regulatory standards for system deployment.

Our team is committed to understanding your technical requirements and operational goals, ensuring precision and attention to detail from start to finish.

Risk Mitigation and Reliability: HQE takes a proactive approach to managing risk by:
● Conducting detailed risk assessments during the design and implementation phases. ● Offering preventive maintenance services to minimize downtime and extend system life. ● Ensuring redundancy in critical systems to guarantee reliability during emergencies.

Our focus on risk mitigation ensures your systems are resilient, dependable, and always ready to perform.

Exceptional Past Performance
Experience with Complex Projects: HQE has completed projects for clients with sophisticated technical and operational requirements. These include:
● Multi-Facility Notification Systems: Integrated MNS solutions for campuses, industrial sites, and government facilities.
● Nationwide Security Upgrades: Large-scale ESS implementations, including CCTV, access control, and intrusion detection, integrated with AI-powered analytics.

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_____________________________________________________________________________________ ● Critical Infrastructure Protection: Custom solutions for high-security government sites, ensuring compliance with Department of Defense standards.

Recognition for Excellence: Over the last three years, HQE has earned a 5-star performance rating from the Department of Defense for delivering projects with exceptional quality, timeliness, and customer satisfaction.

Comprehensive Customer Support Services
Support Service: HQE Systems provides comprehensive support services to ensure your systems remain reliable, secure, and optimized for performance:
● 24/7 Technical Support: Our certified
experts are available around the clock to
resolve critical issues quickly via hotline,
email, or portal, minimizing disruptions
and keeping your systems operational.
● Remote Diagnostics: Using advanced tools,
we can securely diagnose and resolve most
issues remotely, reducing downtime and
eliminating unnecessary on-site visits,
saving time and costs.
● Proactive Health Monitoring: With
real-time alerts, predictive maintenance
insights, and detailed system health
updates, HQE identifies and addresses
potential issues before they impact performance.

Commitment to Excellence: At HQE, we strive to be more than just a vendor—we are a trusted partner committed to your success. Our proven expertise, attention to detail, and focus on long-term reliability ensure that every project is delivered to the highest standards.

With HQE Systems as your partner, you can confidently move forward knowing your organization’s safety, security, and operational needs are in expert hands.

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_____________________________________________________________________________________ End of Proposal
“Our goal at HQE is to continue to serve our veterans through our ‘Hire Veterans Policy HQE-2015-2025’.

We appreciate our current and past customers who have helped us meet our goals of hiring veterans throughout the years. Your support in HQE is directly impacting the support of our incredible veterans.

Thank you for your consideration and support of Minority Business Enterprise (MBE), Disadvantaged Business Enterprise (DBE), and Service Disabled Veteran Owned Small Business (SDVOSB)!.” Thank You from the team of HQE Systems Inc.

Qais Alkurdi
CEO, Disabled Veteran / Retired
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_____________________________________________________________________________________ Attachment 1: HQE Systems, Inc. - Standard Terms & Conditions / SLA

1.1. Provision of Services
HQE Systems, Inc. ("Provider"), operating under the laws of the State of California, agrees to provide the Client with non-exclusive access to its proprietary products, hardware, software, systems, and related services, including but not limited to:
● HQE SiRcom SMART Alert Software ("Software")
● Outdoor Warning Sirens
● Indoor Public Address Systems
● FORTRESS Emergency Mass Notification Systems
● EVERSENSE Ultra-Early Fire Detection Sensors
● SAFE Forklifts
● SAFE Network Solutions
● Portable Alert Units ("SAFE Units")
● Consulting Services
● Installation Services
● System Upgrades
● Maintenance Programs
● Any other hardware, software, systems, or services offered by HQE Systems, Inc.

The provision of these products and services is strictly subject to the terms and conditions set forth in this Service Level Agreement (SLA), as well as any related Order Forms, Statements of Work (SOWs), Addendums, or other contractual agreements, all of which are incorporated herein by reference. The Provider makes no guarantees regarding the continued availability of any specific product, feature, or service. By issuing a PO, the Client acknowledges and agrees that it has reviewed, understood, and accepted the terms of this SLA. The Provider is under no obligation to separately provide a copy of the SLA, and the Client’s failure to review the SLA does not exempt them from compliance. The Client waives all claims related to non-receipt or lack of awareness of this SLA. Furthermore, by issuing a purchase order (PO), accessing, purchasing, or utilizing any of the Provider’s products or services, the Client expressly acknowledges and agrees to be legally bound by the terms and conditions of this SLA, including any future amendments or updates that may be issued from time to time.

Acceptance of this SLA is automatic and does not require a separate signature or written acknowledgment. Failure to read or review this SLA does not exempt the Client from compliance with its terms. The authoritative version of this SLA is maintained on the Provider’s official website at www.HQESystems.com/SLA. The Provider reserves the right to unilaterally modify, amend, or update this SLA at its sole discretion to reflect operational changes, compliance requirements, or enhancements to its products and services. Such updates shall take effect immediately upon publication to the Provider’s website. The Client’s continued use of any of the Provider’s products or services after such publication shall constitute full and unconditional acceptance of the updated terms. It is the sole responsibility of the Client to review the most current version of the SLA, and the Provider bears no obligation to notify or provide copies of updated terms.

Right to Modify Services
The Provider reserves the right, at its sole discretion, to modify, amend, or discontinue any aspect of its products, services, features, or functionalities, including branding or naming conventions. The Provider reserves the right, at its sole discretion, to modify, discontinue, or reconfigure any product or service without liability, compensation, or refund to the Client. The Provider has no obligation to maintain prior versions or functionalities.

1.2. System Reliability Disclaimer
HQE provides all products and services ‘as-is’ with no guarantee of uptime, availability, or error-free operation. The Provider does not guarantee uninterrupted or error-free operation of its systems. System performance may be impacted by factors beyond the Provider’s reasonable control, including but not limited to:
● The Client expressly waives any claims related to
performance failures.
● The Client acknowledges that all systems have inherent limitations and assumes all risks associated with their use. ● Network outages caused by telecommunications providers, internet service providers, or cloud hosting services;
● HQE shall not be liable for damages arising from the
Client’s improper use, misconfiguration, or failure to follow operating guidelines.;
● Client operating a previous version that has been updated to resolve performance issues but did not receive the
updated version due to scheduling issues and or delays; ● Power disruptions or hardware malfunctions at the Client’s facilities or third-party locations;
● Failures, delays, or incompatibilities caused by third-party systems integrated with the Provider’s products or services; ● HQE is not responsible for data loss, breaches, or
unauthorized access resulting from cyberattacks, hacking, or third-party vulnerabilities.
● The Provider shall not be liable for failures, delays, or interruptions caused by third-party systems, including but not limited to telecommunications providers, cloud
services, power utilities, or software integrations. The Client agrees to indemnify, defend, and hold harmless the Provider from any claims arising from third-party failures. ● HQE shall not be liable for any loss, theft, destruction, or unauthorized access to Client Data resulting from
cyberattacks, hacking, malware, or other malicious
activities, whether originating internally or from third parties. HQE’s liability for any security breach shall be strictly limited to the lesser of (a) the total fees paid by the Client in the 12 months preceding the claim or (b) $10,000. ● The Client waives all rights to participate in any class action, collective action, or mass claim against HQE. Any claims must be brought solely on an individual basis through
binding arbitration.
● Force majeure events, as defined in Section 6.

The Client agrees and acknowledges that the Provider shall not be held liable for interruptions, delays, or failures caused by such external factors. This provision ensures mutual understanding of the limitations inherent to interconnected systems, hardware, and infrastructure in complex operating environments.

1.3. Scope of Products and Services
The Provider offers a comprehensive portfolio of products and services designed to address the operational, safety, and security needs of its Clients. These offerings include:

1. Mass Notification Systems (MNS):
● Outdoor Notification Systems: Advanced wide-area alerting systems utilizing sirens and voice-tone technology to
deliver clear, real-time emergency communications. These systems include health monitoring and diagnostics to
ensure reliable operation.
● Indoor Notification Systems: Public address systems,
networked televisions, digital signage, and other
technologies designed to deliver effective and timely
communications within indoor environments.
● HQE SiRcom SMART Alert Software: A centralized
emergency alerting platform capable of issuing
notifications via SMS, email, voice calls, desktop alerts, and more. Fully integrated with FEMA IPAWS for nationwide
alerting compliance and ADA standards for accessibility. ● Portable Alert Units ("SAFE Units"): Self-contained, mobile notification devices designed for rapid deployment in
temporary or emergency scenarios, ensuring
communication continuity.

2. Life Safety and Security Solutions:
● FORTRESS Emergency Mass Notification Systems:

Customizable and integrated solutions for high-risk
facilities, multi-site campuses, and other environments requiring critical communication and response capabilities. ● EVERSENSE Ultra-Early Fire Detection Sensors:

State-of-the-art sensors designed to detect fire hazards at their earliest stages to mitigate risks and ensure rapid response.
● SAFE Network Solutions: A secure and scalable network infrastructure designed to unify and manage
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_____________________________________________________________________________________ communication channels, including RF, LTE, IP, fiber, and satellite communications, for seamless connectivity.

3. Electronic Security Systems (ESS):
● CCTV Systems: High-resolution video surveillance systems with advanced analytics for real-time monitoring, forensic review, and event detection.
● Access Control Systems: Comprehensive access
management platforms that secure entry points with
advanced credentialing, monitoring, and logging
capabilities.
● Intrusion Detection Systems: Automated systems that
detect unauthorized access, triggering immediate alerts to enhance response times and secure facilities.

4. Specialized Equipment and Solutions:
● SAFE Forklifts: Industrial-grade forklifts integrated with advanced safety technologies, such as collision avoidance systems, real-time telemetry, and operator monitoring to promote workplace safety and compliance.

5. Consulting Services:
● Advisory services to assist Clients with infrastructure design, compliance requirements, and risk assessments.

These include:
○ Gap Analysis: Identification of operational
vulnerabilities and recommendations for
improvement.
○ Compliance Audits: Ensuring adherence to
industry standards and legal requirements.
○ Custom Security Solutions: Tailored design and
implementation of systems to meet the Client’s
specific needs.

6. Installation, Upgrades, and Maintenance Services:
● Installation Services: Complete deployment of hardware and software solutions, including system setup,
configuration, and user training.
● System Upgrades: Modernization of legacy systems with updated technology to enhance functionality and ensure
compliance with evolving standards.
● Maintenance Programs: Comprehensive preventive and
corrective maintenance plans, including routine system
diagnostics, updates, and on-demand repairs.

7. Technical Support:
● 24/7 Support Services: Around-the-clock technical
assistance, troubleshooting, configuration help, and remote or on-site diagnostics to ensure minimal downtime and
maximum operational efficiency.

1.4. Fair Usage Policy for "Unlimited" Service Packages Certain services offered under this SLA may be advertised as "Unlimited" (e.g., SMS texts, voice calls, etc.). These services are subject to the following Fair Usage Policy to ensure resource availability and operational equity:

1. Definition of Fair Usage:
○ Unlimited usage is defined as a reasonable and
proportional level of service consumption
aligned with industry standards, the Client’s
operational profile, and historical usage
patterns.

2. Monitoring and Notification:
○ The Provider reserves the right to monitor
service usage. If the Client’s usage exceeds
reasonable thresholds, the Provider will issue a
formal notification detailing the overuse and
potential corrective actions.

3. Actions for Exceeding Limits:
○ If the Client exceeds the defined usage limits,
the Provider reserves the right to:
■ Temporarily cap or limit service
availability to prevent further
overuse;
■ Adjust pricing terms to reflect actual
usage levels; or
■ Suspend or terminate affected
services if excessive usage persists
without resolution.

4. Extraordinary Events:
○ The Provider may, at its sole discretion, exempt
usage exceeding defined limits during bona fide
emergencies, provided that the Client
demonstrates legitimate necessity for the
increased service levels.

5. Remedies for Non-Compliance:
○ Failure to comply with the Fair Usage Policy may
result in suspension or termination of services.

The Client remains liable for all associated
charges and fees incurred during the period of
overuse.

This policy ensures equitable access to resources for all Clients while safeguarding the Provider’s ability to maintain consistent and high-quality service delivery.

2. Data Use and Ownership

2.1 Ownership of Client Data
The Client retains all ownership, rights, title, and interest in and to any data, information, or materials provided to, transmitted through, or processed by the Provider’s systems and products during the course of this Agreement (“Client Data”). Client Data includes, but is not limited to:
● Text, notifications, or other written content provided by the Client;
● Images, graphics, videos, or other multimedia content uploaded by the Client;
● Data inputs, configurations, and settings created or
provided by the Client; and
● Any personal, organizational, or proprietary information transmitted or processed by the Client through the
Provider’s products or services.

The Provider explicitly disclaims all responsibility for the accuracy, legality, completeness, and timeliness of any Client Data and shall not be held liable for any consequences arising from the Client’s use or provision of such data. The Client assumes full responsibility for ensuring that all Client Data complies with applicable laws and regulations, including data privacy, intellectual property, and confidentiality requirements.

The Provider shall not acquire any rights, title, or interest in Client Data except for the limited rights expressly granted by the Client under this Agreement to facilitate the proper use of the Provider’s products and services.

2.2 Client’s Responsibility for Safeguards
The Client is solely responsible for the protection, management, and security of all Client Data. This includes, but is not limited to:
● Ensuring that Client Data is accurate, lawful, and does not infringe on the rights of any third party;
● Implementing appropriate safeguards to prevent
unauthorized access to, or misuse of, Client Data by the Client’s employees, contractors, or agents;
● Ensuring that all hardware, software, and network systems used to access the Provider’s products or services comply with applicable security standards;
● Ensuring that Client Data is regularly backed up and that any backup processes are solely the Client’s responsibility; and
● Complying with all applicable data protection laws,
regulations, and requirements when using the Provider’s products or services.

The Provider disclaims all liability for any loss, theft, destruction, unauthorized access, or other misuse of Client Data, whether caused by the Client, third-party systems, or external events beyond the Provider’s reasonable control.

2.3 Legal Compliance and Indemnification
The Client warrants that it has obtained all necessary permissions, consents, licenses, and authorizations required to provide, process, or use Client Data through the Provider’s products or services. The Client further warrants that its use of the Provider’s systems, products, or services shall comply with all applicable laws, regulations, and third-party agreements.

The Client agrees to indemnify, defend, and hold harmless the Provider, its officers, directors, employees, agents, affiliates, and successors from and against any and all claims, damages, losses, HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 12 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 166 Town of Paradise
Paradise, CA
_____________________________________________________________________________________ liabilities, judgments, penalties, costs, or expenses (including reasonable attorneys’ fees) arising from or related to:
● The Client’s provision of Client Data that violates any applicable laws or third-party rights, including but not limited to intellectual property or data privacy laws;
● The Client’s failure to implement adequate security
measures to protect Client Data;
● Any unauthorized access to or use of Client Data caused by the Client’s employees, contractors, agents, or third
parties; and
● The Client’s breach of its representations, warranties, or obligations under this Agreement.

2.4 No Provider Liability for Data Issues
The Provider shall not be held liable for:
● Loss, corruption, or unauthorized access to Client Data due to actions or omissions by the Client or any third parties; ● Errors, delays, or failures caused by the Client’s systems, hardware, or infrastructure;
● Unauthorized access to Client Data resulting from the Client’s failure to maintain adequate safeguards;
● Third-party claims, damages, or liabilities arising from the Client’s use of the Provider’s products or services; and ● Any failure by the Client to comply with applicable legal, regulatory, or contractual obligations.

The Provider provides its products and services on an “as-is” basis and disclaims all warranties, express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, or non-infringement, with respect to Client Data.

2.5 Indemnification for Data Breaches or Violations
In the event of any claim, investigation, regulatory action, or legal proceeding related to the Client’s use of the Provider’s products or services, the Client agrees to indemnify, defend, and hold harmless the Provider, its officers, directors, employees, agents, and affiliates from any and all resulting damages, fines, penalties, losses, costs, or expenses, including but not limited to:
● Attorneys’ fees and legal defense costs;
● Fines or penalties imposed by regulatory authorities; and ● Settlement amounts or damages awarded to third parties.

The Client shall assume all responsibility for mitigating any consequences arising from unauthorized access to or misuse of Client Data.

Key Protective Provisions
● Data Ownership Disclaimer: The Provider asserts no control over Client Data and disclaims any responsibility for
ensuring its accuracy, legality, or compliance.
● No Guarantee of Security: The Provider does not guarantee the security of Client Data and disclaims liability for breaches or unauthorized access caused by Client actions or third parties.
● Indemnity: The Client bears full responsibility for all legal or financial consequences arising from its data and must
indemnify the Provider against any related claims.

3. Service Levels

3.1 Service Commitment
The Provider makes a reasonable effort to maintain the operational availability of its products and services, including but not limited to the HQE SiRcom SMART Alert Software ("Software") and other systems, for a minimum of 99.9% of the time in any given calendar year (“Service Commitment”). This Service Commitment is not guaranteed and is subject to the exclusions outlined below, ensuring the Provider assumes no liability for disruptions beyond its reasonable control.

Exclusions from Uptime Calculations
The calculation of uptime explicitly excludes interruptions caused by:

1. Planned Downtime:

Scheduled downtime necessary for routine maintenance,
upgrades, or other operational requirements. Notification of planned downtime may be provided through acceptable
communication methods, such as email, text messages,
portal updates, or meetings. The Client acknowledges that such downtime is necessary for the continued
improvement of the Provider’s products and services.

2. Force Majeure Events:

Circumstances beyond the Provider’s reasonable control, including but not limited to:
○ Natural disasters (e.g., earthquakes, floods,
wildfires, hurricanes);
○ Acts of God;
○ Global pandemics or public health emergencies;
○ Acts of war, terrorism, or civil unrest;
○ Cyberattacks, including but not limited to
denial-of-service (DoS) or distributed
denial-of-service (DDoS) attacks;
○ Governmental actions, orders, or regulations;
○ Utility failures, power outages, or energy
shortages; and
○ Labor disputes or strikes.

3. Third-Party Dependencies:

Failures, delays, or interruptions caused by third-party systems, networks, or services not under the Provider’s direct control. This includes, but is not limited to,
disruptions involving internet service providers, cloud infrastructure providers, hosting services, or
telecommunications networks.

4. Client Actions or Omissions:

Downtime caused by the Client’s actions, inactions, or
infrastructure. This includes, but is not limited to:
○ Misuse of the Provider’s products or services;
○ Non-compliance with operational or
configuration requirements outlined by the
Provider;
○ Use of incompatible hardware, software, or
systems; and
○ Neglect in performing required updates,
maintenance, or support on the Client’s
systems.

Force Majeure Clause
The Provider shall not be liable for any failure or delay in achieving the Service Commitment or fulfilling any obligations under this Agreement to the extent such failure or delay is caused by a force majeure event.

In the event of a force majeure event:
● Notification: The Provider may notify the Client of the event and its anticipated impact on services.
● Efforts to Mitigate: The Provider may make commercially reasonable efforts to mitigate the effects of the force majeure event and resume services as soon as reasonably possible.

Acknowledgment of Risk Allocation
The Client acknowledges and agrees that the Service Commitment reflects a reasonable allocation of risks and inherent limitations of software-dependent and hardware-integrated systems operating in complex environments. The exclusions and limitations set forth in this Section are critical to the Provider’s ability to deliver products and services on commercially viable terms.

3.2 Customer Support
Customer support services for the Provider’s products and services, including the HQE SMART Alert Software and related systems, may be offered as a courtesy, subject to the terms outlined in this Agreement.

The Provider does not guarantee any specific results, timelines, or resolutions for support requests.

Scope of Support
The Provider, at its sole discretion, may address technical support inquiries or issues raised by the Client. This scope may include:
● Basic Assistance: General guidance on the configuration, use, or functionality of the Provider’s products and
services;
● Issue Troubleshooting: Identification and potential
resolution of technical problems directly affecting the operation of the Provider’s products within their intended scope of use; and
● Best Practices Advice: Recommendations for optimizing the efficiency or effectiveness of the Provider’s products or services.

Exclusions from Support
HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 13 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 167 Town of Paradise
Paradise, CA
_____________________________________________________________________________________ The Provider is under no obligation to provide support for issues or requests that fall outside the original scope of the Client’s contracted services, including but not limited to:
● Modifications, customizations, or feature requests beyond the original agreed specifications;
● Training requirements outside standard documentation; ● Third-party integrations or compatibility issues; and ● Hardware, software, or systems not provided or certified by the Provider.

Support Levels and Response Times
Support requests, if acknowledged by the Provider, may be classified into the following categories with approximate response guidelines:

1. Emergency Support:
○ Definition: Critical failures of the Provider’s
products or services that prevent core
functionality (e.g., the inability to send
emergency alerts).
○ Response Time Goal: The Provider may aim to
acknowledge such requests within one (1) hour
during normal business operations.

2. Priority Support:
○ Definition: Issues that impact functionality but
do not prevent core operations (e.g., software
bugs affecting non-critical features).
○ Response Time Goal: The Provider may aim to
respond within twenty-four (24) hours of
receiving the request.

3. Administrative Support:
○ Definition: Non-technical issues or general
inquiries (e.g., clarification of user operations or
training requests).
○ Response Time Goal: The Provider may aim to
respond within seventy-two (72) hours of
receiving the request.

These response time guidelines are approximate and do not constitute a binding commitment or service-level guarantee.

3.3 Limitations of Liability
The Provider shall not be held liable for:
● Any failure to meet response time guidelines or to provide support services;
● Losses, damages, or interruptions resulting from errors, delays, or omissions related to the Client’s use of the Provider’s products or services;
● Incidental, indirect, special, punitive, or consequential damages, including but not limited to loss of profits,
revenue, data, or goodwill; and
● Any claims arising from the Client’s failure to comply with the Provider’s operational guidelines or terms of use.
● HQE’s products and services are not a substitute for human decision-making or emergency response. The Client
assumes all responsibility for ensuring proper redundancy, backup systems, and independent verification of alerts, alarms, and notifications. HQE shall not be liable for any claims, damages, or injuries resulting from failure, delay, or malfunction of any safety, security, or emergency-related system.

The Client agrees that the Provider’s liability, if any, arising under this Agreement shall be strictly limited to the issuance of potential service credits, if explicitly agreed to in writing, and in no event shall exceed the fees paid by the Client for the affected services during the relevant service period.

4. Fees and Payment

4.1 Fee Structure and Payment Obligations
The Client acknowledges and agrees to remit payment to the Provider for all fees outlined in the applicable Order Forms, Statements of Work ("SOWs"), or other contractual agreements, all of which are incorporated into this Service Level Agreement ("SLA") by reference.

The following terms govern the fee structure and payment obligations:

1. Non-Cancellable Fees:

All payment obligations under this Agreement are
irrevocable, binding, and non-cancellable upon execution of an Order Form or SOW. The Client acknowledges that
the Provider has allocated resources and undertaken
commitments in reliance on the enforceability of these
obligations.

2. Fees Independent of Usage:

The Client agrees that the fees stipulated in the Order Forms are based on the agreed scope of services,
independent of the Client’s actual usage of the Provider’s products or services. Under no circumstances shall non-use of the Provider’s products or services relieve the Client of its obligation to pay the full amount due.

3. Non-Refundable Payments:

Except as expressly stated in this Agreement or in an
applicable Order Form, all fees paid by the Client are
non-refundable. This includes, but is not limited to, cases where the Client elects to discontinue or reduce usage of the Provider’s products or services. The Client agrees that this non-refundability clause reflects a reasonable
allocation of risks and costs between the Parties.

4. Client Assumption of Risk:

The Client assumes full responsibility for ensuring the timely payment of fees and agrees that any delays,
interruptions, or issues unrelated to the Provider’s
obligations under this Agreement do not alter or diminish the Client’s payment obligations.

4.2 Invoicing and Payment Terms
The Client agrees to comply with the invoicing and payment terms outlined below, ensuring prompt and complete payments:

1. Invoice Issuance:

Invoices for the Provider’s products and services will be issued on an annual basis unless otherwise specified in the Order Form. Invoices will be issued in advance of the
service period to facilitate the uninterrupted availability of the Provider’s products and services.

2. Initial Invoice:

The Provider reserves the right to issue the initial invoice following the Client’s execution of the applicable Order Form and acknowledgment of the Certificate of Successful Deployment (“Certificate”), where applicable. The
Certificate shall confirm that deployment has been
completed in accordance with agreed specifications and
standards.

3. Payment Deadlines:

The Client shall remit payment for all invoices within thirty (30) calendar days of the invoice date unless otherwise specified in the applicable Order Form. Timely payment is essential to maintaining the Client’s access to the Provider’s products and services.

4. Late Payments:

In the event of late payments, the following provisions apply:
○ A late payment fee will be assessed at the lesser
of one and one-half percent (1.5%) per month
or the maximum rate permitted under
applicable law.
○ The late payment fee is intended to compensate
the Provider for the administrative burden,
operational disruptions, and opportunity costs
associated with late payments.

5. Suspension of Services:

The Provider reserves the right, at its sole discretion, to suspend or terminate access to its products and services if payment is not received within the specified deadlines.

Such suspension or termination does not absolve the Client of its obligation to pay the outstanding fees, including any late fees or penalties.

6. Collection Costs:

The Client agrees to reimburse the Provider for any and all reasonable costs associated with the collection of overdue payments. These costs may include, but are not limited to:
○ Attorneys’ fees and legal expenses;
○ Court costs;
○ Fees incurred for the engagement of collection
agencies or third-party recovery services.

4.3 Indemnification for Non-Payment
HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 14 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 168 Town of Paradise
Paradise, CA
_____________________________________________________________________________________ The Client agrees to indemnify, defend, and hold harmless the Provider, its affiliates, and their respective officers, directors, employees, agents, successors, and assigns from and against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of any kind, including but not limited to attorneys’ fees, arising out of or relating to:

1. The Client’s failure to fulfill its payment obligations under this Agreement;

2. Any third-party claims arising as a direct or indirect result of the Client’s non-payment of fees;

3. Operational or financial disruptions experienced by the Provider as a result of the Client’s delinquent payment status.

This indemnification obligation shall remain in effect even after the termination or expiration of this Agreement and shall survive any resolution of payment disputes.

4.4 No Set-Off Rights
The Client expressly waives any right to withhold, delay, or set off payment obligations under this Agreement for any reason, including but not limited to disputes concerning the quality or functionality of the Provider’s products or services. The Client acknowledges and agrees that its payment obligations are independent of the Provider’s performance and shall not be subject to counterclaims or deductions.

4.5 Tax Obligations
All fees and charges under this Agreement are exclusive of applicable taxes, duties, and levies. The Client is solely responsible for the calculation, collection, and remittance of any applicable sales, use, value-added, or similar taxes, except for taxes based on the Provider’s net income. The Client agrees to indemnify and hold the Provider harmless from any claims, penalties, or liabilities arising from the Client’s failure to comply with applicable tax obligations.

4.6 Final Provisions

1. No Waiver of Payment Obligations:

The Provider’s decision not to enforce or delay the
enforcement of payment-related remedies under this
Agreement shall not constitute a waiver of its rights to collect full payment or enforce applicable penalties.

2. Client Certification of Payment Ability:

The Client certifies that it has the financial resources necessary to fulfill its obligations under this Agreement and agrees to notify the Provider of any material changes in its financial condition that could impact its ability to make timely payments.

5. Confidentiality

5.1 Recognition of Confidentiality
The Parties acknowledge and agree that during the course of their business relationship, either party (the "Disclosing Party") may disclose or make available to the other party (the "Receiving Party") certain confidential, proprietary, sensitive, or otherwise non-public information, whether oral, written, electronic, or in any other format, pertaining to the Disclosing Party’s business operations, strategies, technology, or financial affairs ("Confidential Information").

Confidential Information includes, but is not limited to:

1. Trade secrets, data, formulas, algorithms, software source code, programs, and designs;

2. Information regarding pricing, costs, business methods, and strategies;

3. Client lists, vendor relationships, and proprietary
methodologies;

4. Technical information, such as plans, drawings, and
specifications; and

5. Any information that derives independent economic value from not being generally known to or readily ascertainable by others who could obtain economic value from its
disclosure or use.

For the purposes of this Section, Confidential Information shall include any information that is designated as "confidential," "proprietary," or words of similar import, or which, under the circumstances of disclosure, a reasonable person would understand to be confidential or proprietary in nature.

5.2 Obligations Regarding Confidential Information

5.2.1 Protection and Safeguards
The Receiving Party shall:

1. Protect and safeguard the Confidential Information of the Disclosing Party with at least the same degree of care as it uses to protect its own confidential and proprietary
information, but in no event less than a commercially
reasonable standard of care.

2. Implement and maintain robust physical, electronic, and procedural safeguards to prevent unauthorized access, use, reproduction, or dissemination of Confidential Information.

3. Limit access to the Confidential Information to those employees, contractors, or agents of the Receiving Party who have a legitimate "need-to-know" basis in connection with this Agreement and who are bound by confidentiality obligations no less restrictive than those set forth herein.

5.2.2 Restricted Use and Disclosure
The Receiving Party shall:

1. Use the Disclosing Party’s Confidential Information solely for the purposes of fulfilling its obligations under this Agreement and for no other purpose.

2. Not disclose, disseminate, or otherwise make available any Confidential Information to any third party without the prior express written consent of the Disclosing Party, except as required by law or expressly permitted under this
Agreement.

3. Not modify, alter, reverse engineer, or create derivative works from the Disclosing Party’s Confidential Information, except as explicitly permitted in writing by the Disclosing Party.

5.3 Exceptions to Confidential Information
The obligations set forth in this Section shall not apply to information that:

7. Public Domain: Was in the public domain at the time of disclosure, or subsequently becomes publicly available
through no fault or breach by the Receiving Party.

8. Prior Knowledge: Was known to the Receiving Party
without confidentiality restrictions prior to disclosure, as evidenced by the Receiving Party’s written records.

9. Approved Disclosure: Is disclosed with the prior written approval of the Disclosing Party.

10. Independent Development: Is independently developed by the Receiving Party without reliance on or reference to the Confidential Information of the Disclosing Party.

11. Legally Compelled Disclosure: Is required to be disclosed by law, regulation, court order, or other legal process,
provided that the Receiving Party gives prompt written
notice to the Disclosing Party (to the extent legally
permissible) and reasonably cooperates, at the Disclosing Party’s expense, in seeking a protective order or other appropriate remedy to safeguard the confidentiality of the information.

5.4 Notification and Handling of Breaches
In the event of an actual, suspected, or threatened unauthorized access, use, or disclosure of Confidential Information ("Breach") by the Receiving Party, the Receiving Party shall:

1. Notification Obligations:
○ Promptly, and no later than seventy-two (72)
hours after becoming aware of the Breach,
notify the Disclosing Party in writing of the
nature and scope of the Breach.
○ Provide all reasonably available details regarding
the Breach, including but not limited to the
types of Confidential Information affected, the
known or suspected cause, and the measures
being taken to investigate and mitigate the
Breach.

2. Remediation Efforts:
○ Take immediate and reasonable measures to
contain, mitigate, and remedy the effects of the
Breach, including restricting further
unauthorized access and conducting an internal
investigation.

HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 15 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 169 Town of Paradise
Paradise, CA
_____________________________________________________________________________________ ○ Fully cooperate with the Disclosing Party’s
directives to assess the scope of the Breach and
implement any necessary remedial actions.

3. Costs of Remediation:
○ Bear all costs and expenses associated with
responding to and remediating the Breach,
including but not limited to forensic
investigations, legal fees, notifications to
affected individuals or entities, and credit
monitoring services (if applicable).

4. Investigation and Reporting:
○ Provide a detailed written report to the
Disclosing Party within thirty (30) calendar days
of the initial notification, outlining the findings
of the investigation and the measures
implemented to prevent a recurrence.

5.5 Indemnification for Breach of Confidentiality
The Receiving Party shall indemnify, defend, and hold harmless the Disclosing Party, its affiliates, and their respective officers, directors, employees, agents, successors, and assigns from and against any and all claims, losses, liabilities, damages, judgments, settlements, interest, awards, penalties, fines, costs, or expenses, including reasonable attorneys’ fees, arising out of or relating to:

1. Any unauthorized access, use, or disclosure of Confidential Information by the Receiving Party, its employees, agents, or contractors;

2. Any failure by the Receiving Party to comply with its obligations under this Section; and

3. Any third-party claims directly or indirectly resulting from the Receiving Party’s breach of this Section.

5.6 Equitable Remedies
The Receiving Party acknowledges that the unauthorized disclosure or use of Confidential Information may cause irreparable harm to the Disclosing Party for which monetary damages may be inadequate.

Therefore, the Disclosing Party shall be entitled to seek equitable relief, including temporary or permanent injunctive relief and specific performance, in addition to any other remedies available at law or in equity, without the necessity of posting a bond or other security.

5.7 Survival of Confidentiality Obligations
All confidentiality obligations set forth in this Section shall survive the expiration or termination of this Agreement for a period of five (5) years, or indefinitely in the case of trade secrets or information protected by applicable law.

6. Term and Termination

6.1 Duration of Agreement
This Agreement shall become effective as of the date of its execution by both parties (the "Effective Date") and shall remain in full force and effect until all subscriptions, access rights, and service provisions under this Agreement have naturally expired in accordance with their respective terms or until this Agreement has been terminated pursuant to the provisions set forth herein.

6.2 Termination for Cause
(i) Termination for Material Breach
Either party (the "Terminating Party") may terminate this Agreement immediately upon written notice to the other party (the "Breaching Party") in the event of a material breach of this Agreement. A material breach shall include, but is not limited to:

1. A failure by the Breaching Party to perform any material obligation required under this Agreement;

2. A breach of confidentiality obligations outlined in Section 5; or

3. A failure by the Client to make timely payment of fees as required under Section 4.

The Terminating Party shall provide the Breaching Party with written notice detailing the nature of the alleged breach.

Remedy Period for Provider
If the alleged breach is committed by the Provider, the Client shall provide the Provider with a thirty (30) day remedy period to cure the breach. If the Provider successfully remedies the breach within the allotted thirty (30) days, the Agreement shall continue in full force and effect, and the breach shall no longer serve as a basis for termination.

Resolution and Continuation
If the breach is remedied to the satisfaction of the Terminating Party within the specified period, the Agreement shall remain in effect, and neither party shall have the right to terminate based on that breach. (ii) Termination for Insolvency
Either party may terminate this Agreement immediately and without prior notice if the other party:

1. Becomes the subject of a petition in bankruptcy or any proceeding relating to insolvency, receivership, liquidation, or composition for the benefit of creditors;

2. Makes a general assignment for the benefit of creditors; or

3. Ceases to conduct business in the ordinary course.

Termination under this provision shall not relieve the Breaching Party of any obligations incurred prior to the effective date of termination, including, but not limited to, any outstanding payment obligations under Section 4 of this Agreement.

6.3 Consequences of Termination
Upon the termination or expiration of this Agreement, regardless of the reason for termination, the following provisions shall apply:
(i) Return or Destruction of Confidential Information
Each party shall return or, at the written request of the Disclosing Party, securely destroy all Confidential Information belonging to the Disclosing Party that is in its possession or control. Written certification of compliance with this requirement shall be provided within thirty (30) days of termination.
(ii) Cessation of Use of Products and Services
The Client shall immediately cease all use of any products, services, software, hardware, or systems provided by the Provider under this Agreement. This includes, but is not limited to, uninstalling or deleting all copies of the Software or related products, hardware, or documentation, and ensuring that the Client’s employees, contractors, and agents do the same. The Client shall provide written certification of compliance with this obligation upon the Provider’s request. (iii) Payment of Outstanding Amounts
Any fees, costs, or other sums owed by the Client to the Provider under this Agreement, up to and including the date of termination, shall become immediately due and payable in full.
(iv) Survival of Rights and Obligations
Termination of this Agreement shall not affect any rights, obligations, or liabilities of either party that accrued prior to the date of termination. The Provider retains the right to seek damages, indemnification, or other remedies for any breaches of this Agreement that occurred before the termination date.
(v) Post-Termination Indemnification
The Client shall indemnify, defend, and hold harmless the Provider, its affiliates, and their respective officers, directors, employees, agents, successors, and assigns from and against any and all claims, losses, damages, liabilities, costs, expenses, or penalties, including reasonable attorneys’ fees, arising from or related to:

1. The Client’s misuse of the Provider’s products, services, or systems prior to termination;

2. The Client’s failure to comply with any obligations under this Agreement, including obligations discovered or arising post-termination;

3. Any claims or liabilities asserted by third parties as a result of the Client’s use of the Provider’s products, services, or systems in violation of this Agreement.

This indemnification obligation shall survive the termination of this Agreement.

6.4 Survival of Provisions
Any provisions of this Agreement that by their nature should survive termination or expiration shall remain in effect. This includes, but is not limited to:

1. Confidentiality Obligations (Section 5);

2. Indemnification Obligations (Sections 4 and 6);

3. Limitations of Liability (Section 3.3); and

4. Any provisions related to dispute resolution, governing law, or other remedies available to the Provider.

6.5 Indemnification for Termination
In the event of termination due to a material breach by either party, the Breaching Party shall indemnify, defend, and hold harmless the Terminating Party from any and all losses, damages, liabilities, costs, claims, and expenses, including reasonable attorneys’ fees, arising directly or indirectly from the Breaching Party’s material breach of this Agreement that resulted in its termination.

HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 16 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 170 Town of Paradise
Paradise, CA
_____________________________________________________________________________________ The indemnification under this Section shall apply to all costs incurred in addressing and remedying the consequences of the breach, including but not limited to administrative costs, collection efforts, or litigation expenses.

7. General Provisions

7.1 Entire Agreement
This Agreement, including all related Exhibits, Order Forms, schedules, addendums, and amendments executed in accordance with the terms herein, constitutes the sole and entire agreement between HQE Systems, Inc. ("Provider") and the Client with respect to the subject matter addressed herein. It supersedes all prior and contemporaneous understandings, agreements, representations, warranties, and communications, whether written or oral, relating to such subject matter.

No provision of this Agreement may be amended, modified, or supplemented except through a written document signed by both parties. Additionally, any waiver of a term or condition of this Agreement shall only be effective if it is explicitly set forth in a written document signed by the party waiving compliance.

7.2 Severability
If any term, clause, or provision of this Agreement is deemed invalid, illegal, or unenforceable by a court of competent jurisdiction, such determination shall not affect or invalidate the remaining terms, clauses, or provisions of this Agreement.

In the event of such invalidity, illegality, or unenforceability, the parties shall negotiate in good faith to modify the affected term or provision so that the intent of the parties is preserved to the greatest extent possible and the Agreement can be enforced as originally contemplated.

The provisions of this Agreement shall remain enforceable in all jurisdictions where such invalidity, illegality, or unenforceability is not applicable.

7.3 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its choice of law or conflict of law principles, including any such principles that would result in the application of the laws of another jurisdiction.

The Client expressly agrees that the courts of the State of California shall have exclusive jurisdiction over any disputes or claims arising out of or related to this Agreement, unless otherwise stated in the dispute resolution provisions herein.

7.4 Dispute Resolution
Binding Arbitration & Waiver of Litigation: Any and all disputes, claims, or controversies arising from or related to this SLA, including but not limited to those concerning contract performance, termination, breach, negligence, misrepresentation, fraud, statutory violations, or any other legal theory, shall be resolved exclusively through final and binding arbitration administered by the Riverside County Courts in California, under the rules of the Federal Arbitration Act (9 U.S.C. §§ 1-16), which shall preempt any conflicting state laws. The arbitration shall be conducted before a single arbitrator, and the arbitrator’s decision shall be final, binding, and enforceable in any court of competent jurisdiction. The parties expressly waive any right to bring disputes in a court of law, including but not limited to any claim challenging the enforceability of this arbitration clause. No party shall have the right to seek emergency injunctive relief or any provisional remedy in court, as all such requests must be submitted to the arbitrator. The prevailing party in arbitration shall be entitled to recover all reasonable attorneys’ fees, arbitration costs, and legal expenses incurred. By entering into this SLA, the Client knowingly and voluntarily waives all rights to a jury trial, class action, or collective proceeding, and agrees that disputes must be brought solely on an individual basis. Any and all disputes, claims, or controversies shall be resolved exclusively through final and binding arbitration. The parties waive any right to bring disputes in any court, including claims challenging the validity or enforceability of this arbitration provision.

This arbitration agreement is governed by the Federal Arbitration Act (9 U.S.C. §§ 1-16) and preempts any conflicting state laws. No emergency injunctive relief shall be sought in court; all claims must be submitted to arbitration. The prevailing party shall recover all attorneys’ fees and legal costs.

Costs of Arbitration
The party found to be at fault shall bear all arbitration costs, including filing fees, administrative fees, arbitrator fees, and reasonable attorneys' fees incurred by the non-fault party. If fault cannot be reasonably apportioned, each party shall bear its own costs and fees.

Waivers
The parties expressly waive:

1. Any right to a trial by jury; and

2. Any right to bring, participate in, or recover under a class, collective, or representative action in connection with any Dispute, whether in arbitration or otherwise.

This Section 7.4 shall survive termination or expiration of this Agreement and shall bind the parties’ successors and assigns.

7.5 Notices
All notices, requests, consents, claims, demands, waivers, and other communications related to this Agreement must be made in writing and delivered via one of the following methods:

1. Hand Delivery – Effective upon written confirmation of receipt;

2. Overnight Courier – Effective upon receipt by the
addressee, with proof of delivery;

3. Email – Effective upon confirmation of transmission, provided the communication is sent during normal
business hours of the recipient, or on the next business day if sent after normal business hours;

4. Certified or Registered Mail – Effective on the third business day following the date of mailing, provided it is sent with return receipt requested and postage prepaid.

Notices must be sent to the addresses or email addresses provided in the applicable Order Form or Agreement unless otherwise updated in writing by the receiving party.

7.6 Waiver
The Client waives all claims against HQE arising from performance issues, data loss, downtime, or product malfunctions.

No waiver of any term or condition of this Agreement shall be valid or binding unless explicitly set forth in a written document signed by the party waiving compliance.

A waiver by any party of any breach or default shall not constitute a waiver of any subsequent or similar breach or default. Failure to enforce any provision of this Agreement shall not constitute a waiver of the right to subsequently enforce that provision or any other provision of this Agreement.

The act of utilizing any products, services, or systems provided by HQE Systems, Inc., constitutes the Client’s full and unconditional acceptance of the terms and conditions set forth in this Service Level Agreement ("SLA").

END
HQE SYSTEMS, INC. | Minority Owned-Disabled Veteran Business Enterprise (DVBE) 17 | Page Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal 171

DATE JURSIDICTION NAME
3/10/2026 Town of Paradise
# Item Name
Original Cost
Estimate
Total
Compressed Category
Totals Actual Expenditures
1 Pre-award costs:
2 Consultant $ 6,278 $ 6,278 $ -
3 Procurement $ - $ - $ -
TOP Staff Procurement $ 11,745 $ -
4 Public Works Director $ 2,779
5 Police Lieutenant $ 2,952
6 Recovery Director $ 3,214
7 Grants Manager $ 2,800
8 System Implementation
TOP Staff Implementation $ 89,443 $ 75,265
9 Public Works Director $ 18,526
10 Police Lieutenant $ 19,682
11 Recovery Director $ 20,085
12 Grants Manager $ 31,150
13 Installation for 21 Site locations $ 2,677,500 $ 2,776,700 $ 2,660,906 16 Freight $ 65,000
17 Permits $ 4,200
18 EHP Costs $ 30,000
19 5% Contingency $ 142,708 $ 142,708 $ -
Total $ 3,026,875 $ 3,026,875 $ 2,736,171
Under Budget $ 290,704
DR4407 & Project PJ0720 Early Warning System
DISASTER & PROJECT # PROJECT NAME

PROJECT BUDGET SUMMARY
Attachment #4
172

DATE JURSIDICTION NAME
3/10/2026 Town of Paradise
# Item Name Original Cost Estimate
Total Actual Expenditures
1 Total SRMC $ 150,819
2 Staff Time - Implementation $ 110,429
Total SRMC Expenses 110,429 $
Under Budget $ 40,390
DR4407 & Project PJ0720 Early Warning System
DISASTER & PROJECT # PROJECT NAME

PROJECT SRMC BUDGET SUMMARY
Attachment #5
173

HAZARD MITIGATION ASSISTANCE BRANCH

FINAL CLAIM FORM
S:\HAZARD MITIGATION BRANCH\HM Library & Templates\Forms\HazMit Division Forms \Closeout Forms\Closeout Final Claim form (Revised 2-201p) Upon completion of all work, payment of expenditures, please submit this form to:

California Governor’s Office of Emergency Services
Hazard Mitigation Assistance Branch
3650 Schriever Avenue
Mather, California 95655
Subrecipient Name: _________________________________________________________________ Subrecipient Address: _______________________________________________________________ _______________________________________________________________ Phone Number: ____________________________________________________________________ Federal Disaster No: _________________________________________________________________ Hazard Mitigation Project No: __________________________________________________________ FIPS No.: _________________________________________________________________________ Subrecipient Certification:

I HEREBY CERTIFY THAT TO THE BEST OF MY KNOWLEDGE AND BELIEF I HAVE SUBMITTED ALL

REQUIRED DOCUMENTS AND ALL WORK AND COSTS CLAIMED ARE ELIGIBLE IN ACCORDANCE WITH THE GRANT CONDITIONS.

SIGNED: __________________________________________________DATE: ________________________ Applicant’s Authorized Agent
PRINT: ____________________________________________________ Applicant’s Authorized Agent
State of California Certification:

I CERTIFY THAT ALL FUNDS WERE EXPENDED IN ACCORDANCE WITH THE PROVISIONS OF THE FEMA-STATE AGREEMENT.

SIGNED: _________________________________________________ DATE __________________ TITLE: _________________________________________________ State Hazard Mitigation Officer (S HMO) Town of Paradise
5555 Skyway
Paradise, CA 95969
530-872-6291
4407 - 89F
PJ0720
007-55520
Colette Curtis - Recovery & Economic Development Director March, 4, 2026
Attachment #6
174

Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 6(e)
ORIGINATED BY: Marc Mattox, Assistant Town Manager
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: CDBG-DR Infrastructure Action Plan Amendment No. 4

LONG TERM
RECOVERY PLAN:

Yes - Various
COUNCIL ACTION REQUESTED:

1. Approve the Paradise Community Development Block Grant Disaster Recovery – Infrastructure Action Plan Amendment 5; and,

2. Provide alternate direction.

Background:

On January 27, 2020, the United States Department of Housing and Urban Development (HUD) published Federal Register Notice 85 FR 4681 allocating $1.017 billion in Community Development Block Grant – Disaster Recovery (CDBG-DR) funding related to the 2018 federally declared disasters, including FEMA Major Disaster Declarations DR-4382 and DR-4407. The California Department of Housing and Community Development (HCD) serves as the State grantee responsible for administering these funds.

Of the total allocation, HCD dedicated $317,428,488 to the CDBG-DR Infrastructure Program to address unmet disaster recovery infrastructure needs across impacted jurisdictions. On August 19, 2022, HCD announced that the Town of Paradise was awarded $199,592,735.75 under this program. In addition, through a subsequent Action Plan Amendment, the Town received $30 million specifically for design of the Paradise Sewer Project, bringing the Town’s total CDBG-DR Infrastructure allocation to $229,592,735.75.

On September 15, 2022, the Paradise Town Council adopted the original CDBG-DR Infrastructure Action Plan to establish a framework for prioritizing, funding, and implementing eligible recovery infrastructure projects. Since that time, the Town has adopted multiple Action Plan Amendments to reflect updated cost estimates, refined scopes, and new funding opportunities, including Amendment No. 3 adopted in April 2025. Action Plan Amendment 4 was adopted in January 2026 with key updates and new funding accounted for.

Analysis:

Action Plan Amendment No. 5 represents the next evolution of the Town’s long-term recovery strategy and incorporates one development since adoption of Amendment No. 4. Specifically, Amendment No. 5:
 Includes a revised section documenting an increase of supplemental CDBG-DR Infrastructure funding allocation by $7,987,279.65 (updating a previous allocation from $13,500,000 to $21,487,279.65) which the Town intends to program toward the Paradise 175
Sewer Project to further support housing recovery.

Sewer Project Emphasis
A central feature of Amendment No. 5 is the increased emphasis on the Paradise Sewer Project as a foundational recovery investment. Sewer infrastructure remains one of the Town’s most critical unmet needs following the 2018 Camp Fire and is essential to restoring housing, enabling higher-density and affordable residential development, and supporting public health and environmental objectives. Amendment No. 5 increases the recommended CDBG-DR allocation toward sewer construction and positions the Town to incorporate future supplemental funding, Financial Impact:

Adoption of Action Plan Amendment No. 5 does not commit new General Fund resources. All projects and allocations described in the Amendment rely on previously awarded or anticipated state and federal grant funding. Any future obligation of supplemental CDBG-DR funds will be subject to HUD approval, completion of environmental review, and subsequent Council authorization.

Attachments:
- CDBG-DR Action Plan Action Plan Amendment 5 (draft)
176
Town of Paradise
Community Development Block Grant Disaster Recovery
Infrastructure and Mitigation Resiliency Improvement Program Amendment 5
Approved by Town Council June 9, 2026
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Amendment 5, Page 2
Contents

1. Amendment 5 Summary ..............................................................................................................3

2. Purpose.........................................................................................................................................3

3. CDBG-DR Infrastructure General..................................................................................................3

4. CDBG-DR Infrastructure Program Activities.................................................................................3 a. FEMA PA Match .................................................................................................................4 b. FEMA HMGP Match ...........................................................................................................4 c. Other Non-Federal Match..................................................................................................4 d. Stand-Alone Infrastructure ................................................................................................4

5. CDBG-DR Infrastructure Program Requirements.........................................................................5 a. Tie-back to the Disasters....................................................................................................5 b. Meeting a National Objective ............................................................................................5 c. Eligible Applicants..............................................................................................................6

6. CDBG-DR Infrastructure Program Policies and Procedures.........................................................8

7. Town of Paradise Notices of Intent Round 1 & Round 2 .............................................................8

8. HCD Funding Allocation Announcement....................................................................................11

9. Town of Paradise CDBG-DR Infrastructure Allocation ...............................................................12

10. CDBG-DR Resilient Infrastructure Program (MIT-RIP)................................................................13

11. CDBG-DR MIT-RIP Program Activities.........................................................................................13

12. Town of Paradise CDBG-DR MIT-RIP Allocation.........................................................................14

13. Supplemental CDBG-DR Infrastructure Allocation.....................................................................15

14. Town of Paradise Project Grant List...........................................................................................16

15. Project Schedule Forecast..........................................................................................................21 178
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1. Amendment 5 Summary
The Town of Paradise is issuing Action Plan Amendment 5 to incorporate newly anticipated funding. This Amendment reflects continued evolution of the Town’s recovery program as projects advance into later phases of design and construction and additional funding opportunities become available.

The only change in Amendment 4 is as follows:
• Revision of a supplemental CDBG-DR Infrastructure allocation from $13.5 million to $21,487,279.65, subject to HUD approval, intended to further support and enhance the benefits of the first phase of the Paradise Sewer Project. This is a net increase of $$8,465,955.82.

More detailed descriptions of the changes incorporated through this Amendment are provided in Sections 10 through 15 of this document.

2. Purpose
The Town of Paradise CDBG-DR Infrastructure Action Plan aims to document the context, approach and overview of potential use of allocated funds. Future revised Action Plans will be presented:
- Annually during budget processing, and
- As needed when critical issues develop requiring Council action such as changes to the Recommended Project List

3. CDBG-DR Infrastructure General
On January 27, 2020, United States Department of Housing and Urban Development (HUD) published Federal Register Notice 85 FR 4681 allocating $1,017,399,000 in CDBG-DR funding, related to the Federal Emergency Management Agency (FEMA) Major Disaster Declarations DR-4382 from July to September 2018 and DR-4407 in November 2018. The California Department of Housing and Community Development (HCD) is the grantee responsible for administering the CDBG-DR funds allocated to the State of California. CDBG-DR supports the State of California’s unmet recovery needs related to the Federal Emergency Management Agency (FEMA) Major Disaster Declarations DR- 4382 from July to September 2018 and DR-4407 in November 2018.

Recognizing unmet infrastructure recovery needs, related to DR-4382 from July to September 2018 and DR4407 in November 2018, HCD allocated $317,428,488 of the CDBG-DR funding to the Disaster Recovery Infrastructure Program (DR-Infrastructure). DR-Infrastructure projects are funded to assist with meeting the unmet infrastructure needs of local communities. This program provides funding for FEMA Public Assistance (PA) match projects, FEMA Hazard Mitigation Grant Program (HMGP) match projects, other non-FEMA match projects, and stand-alone projects identified by local communities impacted by DR-4382 or DR-4407. HUD requires that 70% of the total grant-wide funds are spent on activities that meet the low- and moderateincome (LMI) national objective and 80% of grant funds are expended in the HUD-identified most impacted and distressed (MID) areas. The MID areas for the 2018 CDBG-DR Infrastructure Program include the entire counties of Butte, Shasta, Los Angeles and Lake; the Town of Paradise is MID eligible within Butte County.

4. CDBG-DR Infrastructure Program Activities
The CDBG-DR Infrastructure Program utilizes CDBG-DR funds to address two needs of Eligible Applicants: 1.) providing support to disaster-impacted units of local government and other eligible entities with payment of their non-federal local cost share (FEMA Public Assistance (PA) Match, FEMA HMGP Match, and other federal grants) requirement so that they can access other disaster recovery resources without incurring an 179
Paradise CDBG-DR Infrastructure Action Plan 26-0609
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unexpected financial burden to address recovery needs; and 2.) providing funds to units of local government to develop “Stand- Alone” infrastructure projects, which can be funded with up to 100% CDBG-DR funding, that are necessary to address unmet disaster recovery needs from impacts tied to DR- 4382 or DR-4407. To address the needs of Eligible Applicants described in this paragraph, the CDBG-DR Infrastructure Program funds are used for the following project types:
• The non-federal local cost share match on disaster-related federal grants (FEMA and other federal grants); and
• Non-match, Stand-Alone Infrastructure projects that address identified unmet 2018 disaster recovery needs and increase the resilience of cities and counties. a. FEMA PA Match
The FEMA Public Assistance (PA) Grant Program supports communities’ recovery from major disasters by providing them with grant assistance for debris removal, life-saving emergency protective measures, and restoring public infrastructure. FEMA provides grants to the State and its sub-applicants (cities, counties, school districts, etc.) to address the long-term rebuilding, recovery, and resiliency needs of the communities.

Projects that are approved for FEMA PA Match in certain FEMA Categories are eligible for non- federal share, local match funding under the CDBG-DR Infrastructure Program. See Section 2.4 for a full description of eligible FEMA PA Match projects, activities, and compliance. b. FEMA HMGP Match
FEMA Hazard Mitigation Grant Program (HMGP) activities are designed to help communities implement hazard mitigation measures following a Presidential Major Disaster Declaration in the areas of the state, tribe, or territory requested by the Governor or Tribal Executive. The key purpose of HMGP is to enact mitigation measures that reduce the risk of loss of life and property from future disasters. Projects that are approved for FEMA HMGP Match are eligible for non-federal, local match funding under DR-Infrastructure. See Section 2.5 for a full description of eligible FEMA HMGP Match projects, activities, and compliance. c. Other Non-Federal Match
HCD may fund the local portion of the non-federal share for other federally grant- funded infrastructure projects with a tie-back to the DR-4382 or DR-4407 disaster events. Grants include, but are not limited to, projects funded by the Federal Highway Administration (FHWA) and the United States Department of Agriculture (USDA).
d. Stand-Alone Infrastructure
Non-match, Stand-Alone CDBG-DR eligible infrastructure projects with a tie-back to the 2018 disasters that can be funded with up to 100 percent of CDBG-DR funding are eligible for the CDBG-DR Infrastructure Program. These non-match, Stand-Alone Infrastructure projects are critical to address identified unmet disaster recovery needs and increase the resilience of cities and counties that are not funded by other federal recovery programs. All Stand-Alone Infrastructure projects require an environmental review be completed by the Subrecipient. See Section 2.6 for a full description of eligible Stand-Alone Infrastructure projects, activities, and compliance.
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Paradise CDBG-DR Infrastructure Action Plan 26-0609
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5. CDBG-DR Infrastructure Program Requirements
a. Tie-back to the Disasters
All projects funded through the DR Infrastructure Program must in some way respond to a direct impact from the following federally declared disasters:
• DR-4382 California Wildfires and High Winds (July 23, 2018 – September 19, 2018) • DR-4407 California Wildfires (November 08, 2018 – November 25, 2018) The FEMA PA program requires clear documentation showing a direct disaster related impact as a prerequisite for entry into the program. Only after an impact threshold has been met does FEMA consider making disaster funds available to applicants. It is assumed that if the potential applicant received funding and support through the FEMA PA program, the project has a tie to one of the declared disasters. For FEMA PA Match projects, the tie to the 2018 disasters is documented by FEMA’s approval of the Project Worksheet.

For Stand-Alone projects, HMGP Match projects, and other Federal match projects, the tie to the 2018 disasters is documented as part of the Notice of Intent (NOI) and application processes and stored in the program file of Grants Network. Documentation that shows a tie to the disaster can include, but is not limited to, a damage estimate prepared by city/county staff or contractor, reconstruction estimates for physical losses by engineers or other similar professionals, insurance claims, or photographic evidence of the physical impact of the disaster on the project with clear dates and timeline.

Eligible Applicants may submit indirect tie backs to the disaster that are a result of population shifts due to DR-4382 and DR-4407. For such indirect tie backs, Eligible Applicants are required to use one of two options.

Option one is to use publicly available data from a government entity or research center acceptable to HCD to determine whether the jurisdiction experienced a sustained population increase, of at least 24 months, reasonably attributable to an influx of 2018 disaster survivors. Option two is for Eligible Applicants to provide alternative data documenting a sustained population increase, of at least 24 months, reasonably attributable to an influx of 2018 disaster survivors, using a survey methodology acceptable to HCD (i.e., reasonably designed to produce an accurate estimate).

For all projects, HCD reviews how each project supports the overall housing recovery from DR-4382 or DR4407. Projects that support overall housing recovery are infrastructure projects that enable the recovery of residential areas by meeting transportation needs, restoring essential utilities, and addressing other public infrastructure and facility needs. Examples of infrastructure projects that support overall housing recovery include, but are not limited to public roads, school facilities, stormwater drainage improvements, potable water, sanitary sewer, electric and gas utilities, wastewater treatment facilities, parks, and other public facilities that are important publicly owned assets.
b. Meeting a National Objective
In accordance with 24 CFR 570.208, all CDBG-DR funded activities must meet a national objective as required under 24 CFR 570.200(a)(2). Under section 101(c) of the authorizing Act (42 U.S.C. 5301) the CDBG program must ensure that the funded activity meets one of the named national objectives. The two qualifying national objectives are:
• Benefiting low- and moderate-income (LMI) persons; and • Meeting an urgent need.
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Paradise CDBG-DR Infrastructure Action Plan 26-0609
Amendment 5, Page 6
National
Objective
Category
Subcategory Required Documentation
LMI Benefit LMI Area Benefit
Boundaries of service area of activity/project
Census data including the persons and percentage LMI
Evidence area is primarily residential
Survey documentation (if applicable)
LMI Benefit LMI Limited
Clientele
Documentation that the beneficiaries are or are presumed to be LMI by category (e.g. senior housing, homeless shelters, etc.).

LMI Benefit LMI Housing If applicable, income document for all household members 18 years of age and older.

Urgent Need Urgent Need Resolution from Subrecipient’s city council, county board, or similar governing body stating that no other funds are available for the proposed project.

The CDBG-DR Infrastructure Program must demonstrate that funded activities meet one of the two National Objectives. The types of records to be maintained for each CDBG-DR funded project depends on the National Objective category for which it qualifies. For all CDBG-DR Infrastructure Program projects, the final determination of the National Objective is completed during the application process based on HUD guidance.

Eligible Applicants also need to provide preliminary National Objective documentation as part of the NOI process to support the Priority Level of the project.

Determining the service area of an activity involves consideration of the nature, location, and accessibility of each activity, and the information contained within the project’s description and scope of work (contained in the Project Worksheet for FEMA PA projects). Service areas are based on the beneficiaries of recovery activities and/or types of facilities (e.g. work on roads and bridges, repair/replacement of public utilities, etc.); geographic features (e.g. locations of highway, rivers, hillsides, etc.); and local population characteristics (e.g. population size and density). Wherever possible, HCD leverages pre- defined service areas mapped by a government agency or utility service providers.

HCD anticipates that projects that qualify under the Low- and Moderate-Income (LMI) National Objective are primarily using the Low- and Moderate-Income Area Benefit (LMA) category. Once a project’s service area is identified, HUD Low- and Moderate-Income Summary Data is used to determine if least 51 percent of the residents are low- and moderate-income persons.

The Urgent Need National Objective requires that the project is designed to meet community development needs having a particular urgency. In the absence of substantial evidence to the contrary, a project is considered to address this National Objective if the design of the project is certified to alleviate existing conditions which pose a serious and immediate threat to the health or welfare of the community which are of recent origin or which recently became urgent, that the Subrecipient is unable to finance the activity on its own, and that other sources of funding are not available. A condition is generally considered to be of recent origin if it developed or became critical within 18 months preceding the certification by the Subrecipient. c. Eligible Applicants
The eligible applicants for Infrastructure Recovery Program funds are municipal and county governments that received FEMA Public Assistance funds for permanent infrastructure projects (Categories C through G) related to the DR-4382 or DR-4407 disaster events and/or are listed as a subrecipient jurisdiction under the 2018 CDBG Disaster Recovery Multifamily Housing Program.

Eligible Applicants
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Paradise CDBG-DR Infrastructure Action Plan 26-0609
Amendment 5, Page 7
• Butte County
• Lake County
• Los Angeles County
• Shasta County
• Ventura County
• City of Agoura Hills
• City of Anderson
• City of Calabasas
• City of Chico
• City of Gridley
• City of Lakeport
• City of Los Angeles
• City of Malibu
• City of Oroville
• City of Redding
• City of Shasta Lake
• City of Thousand Oaks
• City of Westlake Village
• Town of Paradise
Eligible Applicants may submit projects located anywhere within the unit of local government’s jurisdiction in accordance with the eligibility requirements outlined in Sections 2.4, 2.5, 2.6, and 2.7 below. As needed, Eligible Applicants may collaborate with other eligible entities, units of local government, or special districts in the implementation of the CDBG-DR Infrastructure Program.

Subrecipients may submit applications on behalf of another jurisdiction or special district. If the application is approved by HCD, the Subrecipient may enter into an agreement with another jurisdiction or special district for implementing the project. Prior to HCD issuing a Notice to Proceed (NTP) for the project, the Subrecipient must submit a monitoring plan for the unit of local government or special district working under the agreement. The monitoring plan shall demonstrate that the Subrecipient has the capacity to oversee work of the local government or special district.

Agreements with other units of local government, special districts, and other eligible entities are limited to program implementation support and the Subrecipient cannot allocate project funding directly to other government entities unless the Subrecipient, during the Due Diligence process, notifies HCD of its intent to make a unit of local government or special district a subrecipient for a potential project. In such instances, the following two (2) conditions must be special conditions in the MSA that the Subrecipient needs to clear prior to HCD issuing a Notice to Proceed for the specific potential project(s):

1.) HCD approves the Subrecipient’s monitoring plan of the unit of local government or special district for the proposed project. The monitoring plan must demonstrate that the Subrecipient has sufficient understanding of the program requirements, the applicable federal and state regulations, and the capacity to monitor the work of its subrecipients.

2.) Subrecipient agreements must be approved by HCD. If a Subrecipient is a CDBG entitlement community and has a subrecipient agreement in place, they may use the agreement as a template or an amended agreement, if approved by HCD.

If the preceding two (2) conditions are met, the Subrecipient can make the units of local government or special districts subrecipients and can directly allocate funds from the Subrecipient’s DR-Infrastructure allocation for individual projects approved by HCD during the Project Application process and for which HCD issues a Notice to Proceed. For all cases in accordance with 83 FR 5844 Section 51(k), HCD must also assess the Subrecipient’s capacity to execute and monitor the proposed project(s) as a factor in the project review. Additionally, for CDBG-DR funds to be used as the non-federal cost share local match, the project must be a HUD eligible activity and must meet a HUD national objective, per CDBG-DR rules and regulations. Similarly, the project must fully comply with all applicable federal rules and regulations, to include Davis Bacon and related acts, Section 3, Section 504, procurement, environmental review and all other CDBG-DR, cross-cutting, state and local applicable statutes, rules and regulations. 183
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Special note, Paradise Irrigation District is an eligible applicant under the Town of Paradise and will be subject to the subrecipient requirements

6. CDBG-DR Infrastructure Program Policies and Procedures Full CDBG-DR Infrastructure Program Policies and Procedures can be found here:
https://www.hcd.ca.gov/community-development/disaster-recovery-programs/cdbg-dr/cdbg-dr2018/docs/18DRINF18MITRIPPoliciesandProceduresv2.pdf

7. Town of Paradise Notices of Intent Round 1 & Round 2 Through the development of the Town’s Community Long Term Recovery Plan and Transportation Master Plan, the Town of Paradise prepared a list of eligible projects to be considered in the CDBG-DR Infrastructure Notice of Intent phase for both Round 1 (LMI-eligible projects) and Round 2 (all other non-LMI projects). Action taken by Paradise Town Council on February 8, 2022 included the adoption of Resolution No. 2022-12, A Resolution of the Town Council of the Town of Paradise Declaring Certain Projects Critical to Camp Fire Recovery with Unfunded Needs for Consideration in the CDBG-DR Infrastructure Program. A copy of the project list adopted by Council and submitted for consideration is provided below:

Project Title National Objective
Overall Priority
LMI Priority
Urgent Need
Priority Long Term Recovery Plan Tier
and Project Category Total Cost Total Unmet Need
Paradise Sewer Project Urgent Need 1 N/A 1 1 - Sewer System $184,675,000 $182,275,000 On-System Road Rehabilitation Urgent Need-Match 2 N/A 2 1 - Evacuation Routes $55,439,200 $13,859,800 Off-System Road Rehabilitation Urgent Need-Match 3 N/A 3 1 - Evacuation Routes $45,043,700 $11,260,925 Roe Road Extension Phase 1 (S Libby to Pentz) LMI 4 1 N/A 1 - Missing Road Segment $60,400,000 $60,400,000 Roe Road Phase 2 (SR-191 to S Libby) LMI 5 2 N/A 1 - Missing Road Segment $42,622,089 $42,622,089 Roe Road Phase 3 (Scottwood to SR-191) LMI 6 3 N/A 1 - Missing Road Segment $11,105,512 $11,105,512 Pentz Road Widening (Town Limits to Skyway) Urgent Need 7 N/A 4 1 - Evacuation Routes $88,865,680 $88,865,680 Early Warning System Urgent Need-Match 8 N/A 5 1 - Emergency Notification $3,207,400 $3,200,000 Elliott Road Extension (End to Pentz Road) Urgent Need 9 N/A 6 1 - Missing Road Segment $7,050,742 $7,050,742 Neal Road Rehabilitation Urgent Need-Match 10 N/A 7 1 - Evacuation Routes $1,588,300 $397,075 Off-System Culvert Repair Urgent Need-Match 11 N/A 8 1 - Evacuation Routes $750,000 $187,500 Buschmann Extension between Clark & Libby LMI 12 4 N/A 1 - Missing Road Segment $24,043,221 $24,043,221 Sawmill Extension south to Roe Road Extension LMI 13 5 N/A 1 - Long Dead-End Streets $3,337,373 $3,337,373 Roe Road Phase 4 (Skyway to Neal) Urgent Need 14 N/A 9 1 - Missing Road Segment $20,380,141 $20,380,141 184
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Roe Road Phase 5 (Neal to Scottwood) Urgent Need 15 N/A 10 1 - Evacuation Routes $21,049,870 $21,049,870 Upper Skyway Widening (Bille to Pentz) Urgent Need 16 N/A 11 1 - Evacuation Routes $49,067,998 $49,067,998 Neal Road Widening (Town Limits to Skyway) Urgent Need 17 N/A 12 1 - Evacuation Routes $25,308,880 $25,308,880 On-System Culvert Replacement Urgent Need-Match 18 N/A 13 1 - Evacuation Routes $811,000 $202,750 Upper Clark Widening (Wagstaff to Skyway) Urgent Need 19 N/A 14 1 - Evacuation Routes $25,007,475 $25,007,475 Elliott Road Extension (west of Skyway) Urgent Need 20 N/A 15 1 - Missing Road Segment $850,011 $850,011 Category 4 Tree Removal Urgent Need-Match 21 N/A 16 1 - Standing Burnt Tree Removal $11,747,100 $2,936,782
Category 4 Tree Removal Additional Assistance Urgent Need-Match 22 N/A 17 1 - Standing Burnt Tree Removal $10,000,000 $2,500,000
General Plan Update Urgent Need 23 N/A 18 1 - Planning and Zoning $1,200,000 $1,200,000 Sewer Service Area Specific Plan Urgent Need 24 N/A 19 1 - Sewer System $800,000 $800,000 Defensible Space Code Enforcement Urgent Need-Match 25 N/A 20 1 - Updated codes/standards $691,460 $172,865 On-System Hardscape Replacement Urgent Need-Match 26 N/A 21 1 - Walkable Downtown $767,100 $191,775 Storm Drain Master Plan (HMGP) Urgent Need-Match 27 N/A 22 2 - Sustainable Stormwater $513,774 $128,444 Residential Ignition Resistant Program Urgent Need-Match 28 N/A 23 2 - Education Program $8,465,986 $2,116,497 ATP 1 - Skyway Connectivity Project Urgent Need 29 N/A 24 1 - Interconnect Path System $4,461,689 $4,461,689 ATP 3 - Pentz Pathway Project Phase II Urgent Need 30 N/A 25 1 - Interconnect Path System $27,164,964 $26,464,964 ATP 2 - Paradise ATP Gateway Project Urgent Need 31 N/A 26 1 - Interconnect Path System $10,066,526 $9,516,526 ATP 4 - Oliver Curve Pathway Project Phase I Urgent Need 32 N/A 27 1 - Interconnect Path System $4,906,900 $5,073,547 Foster/Black Olive Intersection Improvements Urgent Need 33 N/A 28 1 - Evacuation Routes $5,000,000 $5,000,000 Buschmann Extension West of Foster Road Urgent Need 34 N/A 29 1 - Missing Road Segment $3,290,571 $3,290,571 Intersection Improvements Skyway/Pentz Urgent Need 35 N/A 30 1 - Evacuation Routes $4,500,000 $4,500,000 Moore Road (Public, pave) Urgent Need 36 N/A 31 1 - Missing Road Segment $1,436,639 $1,436,639 Pentz/Pearson Intersection Improvements Urgent Need 37 N/A 32 1 - Evacuation Routes $4,500,000 $4,500,000 Clark Class I (Skyway to Pearson) Urgent Need 38 N/A 33 1 - Interconnect Path System $21,554,691 $21,554,691 Pearson Class I (Clark to Pentz) Urgent Need 39 N/A 34 1 - Interconnect Path System $13,554,857 $13,554,857 Elliott Class I (Skyway to Sawmill) Urgent Need 40 N/A 35 1 - Interconnect Path System $12,718,561 $12,718,561 Wagstaff Class I (North side Oliver to Clark) Urgent Need 41 N/A 36 1 - Interconnect Path System $12,638,530 $12,638,530 Libby Road Extension between Pearson & Elliott Urgent Need 42 N/A 37 1 - Missing Road Segment $5,898,678 $5,898,678 Changeable Message Sign Network Urgent Need 43 N/A 38 1 - Emergency Notification $130,000 $130,000 Forest Service Road Urgent Need 44 N/A 39 1 - Missing Road Segment $1,706,351 $1,706,351 Toyon Lane Improvements (Foster to Roe) Urgent Need 45 N/A 40 1 - Missing Road Segment $3,880,420 $3,880,420 185
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On-System Sign Replacement Urgent Need-Match 46 N/A 41 1 - Evacuation Routes $285,200 $71,300 Traffic Management Center Urgent Need 47 N/A 42 1 - Evacuation Routes $3,500,000 $3,500,000 Traffic Signal Interconnect (Town of Paradise) Urgent Need 48 N/A 43 1 - Evacuation Routes $10,500,000 $10,500,000 Honey Run Road Improvements Urgent Need 49 N/A 44 1 - Evacuation Routes $80,000 $80,000 Reseeding Program Urgent Need-Match 50 N/A 45 1 - Fuels Management Plan $53,600 $13,400 Hazardous Fuel Reduction Program Urgent Need-Match 51 N/A 46 1 - Fuels Management Plan $8,465,986 $2,116,497 Bille Road Class I (Bille Park to Pentz Road) Urgent Need 52 N/A 47 1 - Interconnect Path System $17,865,526 $17,865,526 Sawmill Class I (Bille to Pearson) Urgent Need 53 N/A 48 1 - Interconnect Path System $9,129,765 $9,129,765 Valley View Class I (Valley Ridge Dr West to Oliver) Urgent Need 54 N/A 49 1 - Interconnect Path System $8,973,865 $8,973,865 Oliver Curve Pathway Project Phase II (Bille to Wagstaff) Urgent Need 55 N/A 50 1 - Interconnect Path System $3,787,009 $3,787,009 Skyway Class I (YKHT to Oliver Road) Urgent Need 56 N/A 51 1 - Interconnect Path System $3,371,677 $3,371,677 Pearson Roadway Reconfiguration (Skyway to Almond) Urgent Need 57 N/A 52 1 - Evacuation Routes $600,000 $600,000 Shay Lane Extension (to Center Pine Drive) Urgent Need 58 N/A 53 1 - Long Dead-End Streets $849,633 $849,633 Bille Road Extension east of Pentz Urgent Need 59 N/A 54 1 - Missing Road Segment $2,598,810 $2,598,810 Clark (spot widening b/t Wagstaff & Bille) Urgent Need 60 N/A 55 1 - Evacuation Routes $1,684,300 $1,684,300 A map of most infrastructure projects planned as a result of the development of the Town’s Transportation Master Plan is found below.
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8. HCD Funding Allocation Announcement
On August 19, 2022, Governor Gavin Newsom announced federal grants totaling more than $317 million to assist seven jurisdictions that continue to recover and rebuild after the 2018 federally declared disasters, when wildfires burned more than 1.6 million acres and destroyed hundreds of homes and businesses, particularly in the Town of Paradise, in Butte County.

The Community Development Block Grant-Disaster Recovery (CDBG-DR) funds announced are for foundational infrastructure projects that must be completed as communities work to build and rebuild needed housing, especially housing for low- and moderate-income Californians, and ensure that every household that was displaced in these disasters has the opportunity to return home.

Figure 1 - Paradise TMP Evacuation Projects Map
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A press release issued by the Governor’s office stated:

Communities were awarded funding based on their unmet infrastructure needs and have the flexibility to use the grants to support projects based on their priorities to rebuild in a safe, sustainable, and resilient way. The Town of Paradise has been awarded nearly $200 million, which will be used to construct critical projects that will accelerate their capacity to rebuild higher density and more affordable housing, business corridors, and critical evacuation routes in the event they face future disasters.

The following is a full list of awards announced across the entire CDBG-DR Infrastructure Program:

Local Jurisdiction Total Awarded
Butte County $72,722,679.61
City of Chico $12,388,409.65
City of Malibu $47,276.93
City of Redding $22,563,043.51
City of Shasta Lake $6,326,184.69
Los Angeles County $3,788,157.86
Town of Paradise $199,592,735.75
Total $317,428,488.00

9. Town of Paradise CDBG-DR Infrastructure Allocation
The Town of Paradise was allocated $199,592,735.75. This determination was made after a review of the Town’s eligible projects in respect to other jurisdictions eligible projects and available funding. As a result, the Town of Paradise was awarded 27% its overall eligible unmet need. The Town’s allocation is also inclusive of Paradise Irrigation District’s four eligible projects. The Town of Paradise plans to administer CDBG-DR Program Guidelines for subrecipients and follow the HCD formulate to distribute 27% of Paradise Irrigation District’s eligible projects. Paradise Irrigation District submitted $13,030,000 in eligible CDBG-DR Infrastructure projects. Apportioned at 27%, $3,518,100 would be the Town’s subrecipient allocation to Paradise Irrigation District, reducing the Town’s available funding to $196,074,635.75. Paradise Irrigation District has requested their allocation be absorbed into the Town’s original budget for water infrastructure relocation costs associated with Town CDBG-DR projects. As a result, Town and PID staff will continue to partner with HCD to formulate a Memorandum of Understanding which could govern this request.

Separate from the CDBG-DR Infrastructure total of $317M available, Action Plan Amendment 2 was issued by HCD which identified an additional $30M to be allocated to the Town of Paradise for the Paradise Sewer Project design phase.

Combined, the Town is tasked with administering a total $229,592,735.75 (inclusive of the Paradise Sewer Project Design phase funding), in a long-term partnership with California Housing & Community Development to create generational change in a stronger, more resilient Paradise. 188
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10. CDBG-DR Resilient Infrastructure Program (MIT-RIP)
In parallel to the CDBG-DR Infrastructure Program, the U.S. Department of Housing and Urban Development (HUD) allocated Community Development Block Grant – Mitigation (CDBG-MIT) funds to the State of California to address current and future risks in areas impacted by the 2018 federally declared disasters (DR-4382 and DR-4407). In response, the California Department of Housing and Community Development (HCD) established the Mitigation – Resilience Infrastructure Program (MITRIP) to support projects that reduce risks to life and property, strengthen the resilience of public infrastructure, and lessen the impacts of future natural disasters.

The MIT-RIP program is intended to complement and expand upon CDBG-DR investments by funding infrastructure improvements and mitigation strategies that address long-term vulnerabilities, with particular emphasis on high-risk wildfire communities such as the Town of Paradise. Eligible projects must demonstrate a clear mitigation nexus, reduce community-wide hazard risk, and support continued housing recovery and future development by making critical facilities and systems more resilient.

As a Most Impacted and Distressed (MID) community and a jurisdiction with significant documented wildfire risk, the Town of Paradise is eligible for a substantial portion of statewide MIT-RIP resources.

MIT-RIP funds must meet all federal CDBG-MIT requirements, including the advancement of mitigation measures, compliance with HUD national objectives for mitigation, and adherence to environmental, procurement, labor, accessibility, and cross-cutting federal requirements.

11. CDBG-DR MIT-RIP Program Activities
The MIT-RIP Program funds infrastructure projects that directly reduce risks to residents, property, and essential community functions. The program is focused on mitigating future hazards—particularly wildfire, flooding, and infrastructure system failures—through long-term, forward-looking investments.

MIT-RIP supports the following categories of eligible activities:

1. Mitigation Infrastructure Improvements
Projects that harden or upgrade public infrastructure to withstand future disasters, including but not limited to:
• Roadway and evacuation improvements that reduce bottlenecks and increase evacuation capacity.
• Fire-resistant or ignition-resistant infrastructure components. • Undergrounding or hardening of utilities serving residential areas. • Stormwater or drainage improvements that mitigate flooding or erosion risk. • Redundancy and resiliency upgrades to critical lifeline systems.

2. Multi-Benefit Community Mitigation Investments
• Activities that protect public facilities and residential areas by reducing hazard exposure through multi-benefit approaches such as:
• Wildfire risk reduction in public rights-of-way and critical access corridors. • Fuel modification and vegetation management that increase defensible space along evacuation routes.
• Construction of safe, accessible pathways that provide emergency ingress/egress and reduce conflicts during evacuation events.

3. Planning, Engineering, and Pre-Construction Activities MIT-RIP funds may be used for activities necessary to advance a mitigation project to 189
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construction, such as:
• Environmental review
• Geotechnical studies
• Engineering design
• Right-of-way acquisitions
• Permitting, hydrologic studies, and project development

4. Stand-Alone Mitigation Projects
MIT-RIP supports standalone mitigation projects that do not rely on federal match requirements. These projects must:
• Demonstrate strong mitigation outcomes;
• Reduce specific, identified community hazards;
• Support long-term housing recovery in Paradise; and
• Provide measurable, durable risk reduction.

12. Town of Paradise CDBG-DR MIT-RIP Allocation
The Town of Paradise has been awarded $10,273,223.87 in CDBG-DR MIT-RIP funding to support longterm wildfire and hazard-mitigation infrastructure improvements. This allocation was determined following HCD’s assessment of the Town’s mitigation needs, project readiness, documented wildfire risk, and alignment with the State’s approved CDBG-MIT Action Plan.

MIT-RIP funding represents a critical complement to the Town’s existing CDBG-DR Infrastructure allocation. While CDBG-DR funds address unmet recovery needs tied to the 2018 disasters, MIT-RIP funds focus on preventing or reducing the scale of future disaster impacts. Together, these funding streams support a holistic approach to rebuilding Paradise as a safer, more resilient community.

In March of 2024, Paradise Town Council adopted a resolution in support of submission of three CDBGDR MIT-RIP Projects to be delivered, summarized below:

1. Evacuation Route Permanent Changeable Message Signs
Amount: $5,400,000
Description: This project would install roadside message signs (smaller scale versions of State highway signs) which could be activated in the event of an emergency. A primary objective would be the installation of two signs per evacuation route (Skyway, Neal, Clark and Pentz).

These signs could read “ONE-WAY EVACUATION ACTIVE, USE ALL LANES” for outgoing traffic, while at the same time reading “ROAD CLOSED AHEAD, EVACATION TRAFFIC ONLY” for the ending control point along the same routes.

2. Private Road Identification Safety Project
Amount: $963,953
Description: This project would inventory and standardize private road street name signs which intersect public roads. The intent would be to increase uniformity for daily emergency first responders.

3. Storm Drain Resiliency Project Phase 1
Amount: $3,909,270
Description: This grouping of projects includes the implementation of recommendations from the Town’s 2022 Storm Drain Master Plan. Projects include new storm drain systems and upsizing of existing storm drain infrastructure to meet the new demands and increased flows observed.
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In November 2025, HCD Announced that the Town’s Storm Drain Resiliency Project Phase 2 was preliminarily awarded, listed below:

4. Storm Drain Resiliency Project Phase 2
Amount: $8,668,086.50
Description: This second grouping of projects includes the implementation of recommendations from the Town’s 2022 Storm Drain Master Plan. Projects include new storm drain systems and upsizing of existing storm drain infrastructure to meet the new demands and increased flows observed.

In December 2025, Paradise Town Council directed the reallocation of all MIT-RIP funds originally assigned to the Evacuation Route Permanent Changeable Message Sign Project to the Storm Drain Resiliency Project Phase 1. This action reflects the Town’s adaptive mitigation strategy and recognition that post-fire stormwater impacts pose an immediate and escalating risk to public safety, roadway integrity, and housing recovery. This reallocation is consistent with HCD guidance allowing jurisdictions to adjust project priorities through Action Plan amendments when supported by documented community need and governing body action. Below is a proposed final summary of the Town’s intended use of CDBG-DR MIT-RIP Funds:

1. Private Road Identification Safety Project - $963,953

2. Storm Drain Resiliency Project Phase 1 - $9,309,271

3. Storm Drain Resiliency Project Phase 2 - $8,668,086.50

13. Supplemental CDBG-DR Infrastructure Allocation
In December 2025, HCD issued a Notice of Intent indicating that the State intends to amend the 2018 CDBG-DR Action Plan to include a supplemental allocation to the CDBG-DR Infrastructure Program. As part of this amendment, approximately $13.5 million in additional CDBG-DR Infrastructure funding is anticipated to be made available to the Town of Paradise through a subsequent application and amendment process, subject to approval by HUD. In May 2026, HCD issued a revised Preliminary Award Announcement for 2018 CDBG Infrastructure Program, Round 2, Town of Paradise – Contract No. 18- DRINFRA-18006. This revision increased the supplemental allocation from $13.5M to $21,487,279.65, a net $7,987,279.65 increase.

The proposed supplemental allocation reflects the State’s ongoing evaluation of unmet disaster recovery needs, cost escalation experienced by local jurisdictions, and the Town of Paradise’s demonstrated capacity to administer large-scale infrastructure recovery projects tied to the 2018 Camp Fire. If approved by HUD, the additional funding would be incorporated into the Town’s existing Master Standard Agreement for the 2018 CDBG-DR Infrastructure Program through a formal amendment and would require Town Council approval of an updated authorizing resolution, budget, and scope of work.

The Town intends to program any approved supplemental CDBG-DR Infrastructure funding toward the Paradise Sewer Project, a foundational recovery investment that directly supports the restoration of housing, enables higher-density and affordable residential development, and advances long-term public health and environmental objectives. Expansion of sewer infrastructure remains one of the most critical unmet recovery needs stemming from the 2018 Camp Fire and is central to both the Town’s and HCD’s shared objectives of accelerating housing recovery, improving community resiliency, and ensuring that displaced residents have the opportunity to return and rebuild. Allocation of the supplemental funds to 191
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the Paradise Sewer Project would further strengthen the Town’s capacity to deliver a generational infrastructure investment with broad community-wide benefits.

Inclusion of this supplemental allocation within Action Plan Amendment 5 is intended to provide transparency regarding potential future funding availability and to position the Town to expeditiously advance eligible infrastructure projects upon final State and HUD approval. Programming of these supplemental funds will be subject to completion of all applicable environmental review, eligibility determinations, and HUD authorization prior to obligation or expenditure.

14. Town of Paradise Project Grant List
Critically, the Town will define the budget allocations to implement specific projects which meet the objectives and priorities of the CDBG-DR programs and community by:
• Stabilizing the Town’s Fiscal Sustainability Plan through the allocation of eligible Disaster Recovery and Mitigation projects with previously unfunded match requirements. • Implement a diverse array of infrastructure projects identified through the extensive planning of the 2019 Community Long-Term Recovery Plan, 2020 Transportation Master Plan, and 2022 Storm Drain Master Plan.

The Long Term Recovery Plan, Transportation Master Plan, and Storm Drain Master Plan priorities have been incorporated into a CDBG-DR Project Grant List which fully utilizes the Town’s allocations. The Project Priorities, Titles, Types, National Objectives, Total Costs and CDBG-DR Grant Amounts are provided on the following page:
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CDBG-DR Project Grant List 26-0609
Priority Project Title Project Type National
Objective
Total Project
Cost

CDBG-DR
INFRA Grant
Amount
(APA4)

CDBG-DR

MIT-RIP
Grant
Amount
(APA4)
INFRA 1 Paradise Sewer Project - Phase 1 (Construction)* New Infrastructure Project UN $145,750,000 $94,915,956 $0 INFRA 1 Paradise Sewer Project (Design APA-2) New Infrastructure Project UN $30,000,000 $30,000,000 $0 INFRA 2 Roe Road Phase 1A (Edgewood to S Libby) New Infrastructure Project LMI $9,297,900 $7,497,900 $0 INFRA 2 Roe Road Phase 2 (S Libby to Clark) New Infrastructure Project LMI $61,000,000 $28,000,000 $0 INFRA 3 Pentz Road Widening (Pearson to Skyway) New Infrastructure Project UN $28,518,100 $28,518,100 $0 INFRA 3 Skyway/Pentz Intersection Improvements New Infrastructure Project UN $5,000,000 $5,000,000 $0 INFRA 3 Pentz Pathway Project Phase II (Pearson to Skyway) New Infrastructure Project UN $25,000,000 $2,191,000 $0 INFRA 4 Upper Skyway Widening (Bille to Wagstaff) New Infrastructure Project UN $17,500,000 $17,500,000 $0 INFRA 4 Skyway Connectivity Project (Bille to Wagstaff) New Infrastructure Project UN $13,500,000 $6,796,000 $0 INFRA 5 Paradise ATP Gateway Project (Neal Road Class I) New Infrastructure Project UN $18,398,000 $5,500,000 $0 INFRA 6 Oliver Curve Pathway (Skyway to Valley View) New Infrastructure Project UN $14,000,000 $1,250,000 $0 Match 1 On-System Road Rehabilitation Match - FHWA ER UN/LMI* $56,517,998 $13,800,000 $0 Match 2 Off-System Road Rehabilitation Match - FEMA PA UN/LMI* $45,927,099 $10,030,224 $0 Match 3 Early Warning System Match - FEMA HMGP UN/LMI* $3,026,875 $756,719 $0 Match 4 Hazardous Fuel Reduction Program Match - FEMA HMGP UN $1,706,460 $406,468 $0 Match 5 Neal Road Rehabilitation Match - FHWA ER UN $1,838,223 $549,190 $0 Match 6 On-System Culvert Replacement Match - FHWA ER UN $931,273 $26,705 $0 Match 7 On-System Hardscape Replacement Match - FHWA ER UN $783,326 $22,461 $0 Match 8 Off-System Culvert Repair Match - FEMA PA UN $664,643 $41,540 $0 Match 9 On-System Sign Replacement Match - FHWA ER UN $224,158 $6,428 $0 MIT 1 Private Road Identification Safety Project New Infrastructure Project UN $963,953 $0 $963,953 MIT 2 Storm Drain Resiliency Project New Infrastructure Project UN $9,309,271 $0 $9,309,271 MIT 3 Storm Drain Resiliency Project Phase 2 New Infrastructure Project UN $8,668,086 $0 $8,668,086 $497,275,365 $251,080,014 $18,941,310
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Key components and statistics of the proposed use of the overall allocation are specified below:
- Previously Unfunded Match Requirements: $25,639,735 in funding dedicated to fulfilling existing match requirements, including road rehabilitation and early warning system. - New Standalone Infrastructure Projects: $231,253,000 in funding dedicated to constructing new, standalone infrastructure projects.
- National Objective, Low Moderate Income: $35,497,900 in funding qualifies towards Low Moderate Income eligible projects.
- National Objective, Urgent Need: $214,249,202 in funding qualifies towards Urgent Need eligible projects.
- National Objective, Urgent Need/Low Moderate Income*: $24,586,943 in funding is dedicated to projects which have town-wide service areas, including areas which qualify as Low Moderate Income.
- Paradise Long Term Recovery Plan Project Statistics: Below is a breakdown of the overall allocation’s use divided by the Town’s Long Term Recovery Plan Categories o Evacuation Routes: $ 71,954,087
o Sewer System: $ 65,000,000
o Missing Road Segments: $ 72,950,000
o Interconnected Path System: $ 14,987,000
o Emergency Notification System: $ 756,719
o Fuels Management: $ 406,468
o Walkable Downtown: $ 22,461
o Mitigation: $18,941,310
- Paradise Sewer Project: $124,437,239 in dedicated funding. HCD allocation of $30,000,000 for the design phase of the project and an additional $94,915,956 is recommended from the overall Town allocation to be used towards the construction of the project. - Overall Allocation Leverage: The Town of Paradise’s total $270,021,324 is proposed to leverage a total of $484,525,365 combined from at least seven separate funding sources.

An overall Project Location Map can be found on the next page.

The recommended projects represent the highest and best use of the CDBG-DR investment while establishing a critical network of projects, when taken globally, will transform Paradise for the next 100 years and more.
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A summary table of changes between Action Plan Amendment 4 and Action Plan Amendment 5 is shown below:

CDBG-DR Project Grant Amount Changes
Priority Project Title
APA-4

CDBG-DR

INFRA/MIT
Amount
APA-5

CDBG-DR

INFRA/MIT
Amount
Net Change
APA-4 to
APA-5
Notes
INFRA 1 Paradise Sewer Project (Design) $30,000,000 $30,000,000 $0 No Change INFRA 1 Paradise Sewer Project
(Construction) $86,450,000 $94,915,956 +$8,465,956 Increased Budget Allocation INFRA 2 Roe Road Phase 1A (Edgewood to S
Libby) $7,497,900 $7,497,900 $0 No Change
INFRA 2 Roe Road Phase 2 $28,000,000 $28,000,000 $0 No Change INFRA 3 Pentz Road Widening (Pearson to
Skyway) $28,518,100 $28,518,100 $0 No Change
INFRA 3 Skyway/Pentz Intersection
Improvements $5,000,000 $5,000,000 $0 No Change
INFRA 3 Pentz Pathway Project Phase II $2,191,000 $2,191,000 $0 No Change INFRA 4 Upper Skyway Widening (Bille to
Wagstaff) $17,500,000 $17,500,000 $0 No Change
INFRA 4 Skyway Connectivity Project (Bille
to Wagstaff) $6,796,000 $6,796,000 $0 No Change
INFRA 5 Paradise ATP Gateway Project (Neal
Road Class I) $5,500,000 $5,500,000 $0 No Change
INFRA 6 Oliver Curve Pathway (Skyway to
Valley View) $0 $0 $0 No Change
Match 1 On-System Road Rehabilitation $13,800,000 $13,800,000 $0 No Change Match 2 Off-System Road Rehabilitation $10,030,224 $10,030,224 $0 No Change Match 3 Early Warning System $756,719 $756,719 $0 No Change Match 4 Hazardous Fuel Reduction Program $406,468 $406,468 $0 No Change Match 5 Neal Road Rehabilitation $549,190 $549,190 $0 No Change Match 6 On-System Culvert Replacement $26,705 $26,705 $0 No Change Match 7 On-System Hardscape Replacement $22,461 $22,461 $0 No Change Match 8 Off-System Culvert Repair $41,540 $41,540 $0 No Change Match 9 On-System Sign Replacement $6,428 $6,428 $0 No Change MIT 1 Private Road Identification Safety
Project $963,953 $963,953 $0 No Change
MIT 2 Storm Drain Resiliency Project $9,309,271 $9,309,271 $0 No Change MIT 3 Storm Drain Resiliency Project
Phase 2 $8,668,086 $8,668,086 $0 No Change
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15. Project Schedule Forecast
For the Recommended Project List, staff created a potential schedule of implementation and deliver, forecasting work to continue through 2029 on major efforts, with some projects minor projects reaching closeout in 2025. The Project Schedule Forecast is shown on the next page. 197
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CDBG-DR Project Grant List 26-0113 Schedule
Priority Project Title
Estimated
Environmental
Review
Completion
Estimated Design
& ROW
Completion
Estimated
Construction
Completion
INFRA 1 Paradise Sewer Project - Phase 1 (Construction)* 2026 2027 2031 INFRA 1 Paradise Sewer Project (Design APA-2) 2026 2027 N/A INFRA 2 Roe Road Phase 1A (Edgewood to S Libby) 2026 2027 2030 INFRA 2 Roe Road Phase 2 (S Libby to Clark) 2026 2027 2030 INFRA 3 Pentz Road Widening (Pearson to Skyway) 2026 2026 2029 INFRA 3 Skyway/Pentz Intersection Improvements 2026 2026 2027 INFRA 3 Pentz Pathway Project Phase II (Pearson to Skyway) Complete 2026 2029 INFRA 4 Upper Skyway Widening (Bille to Wagstaff) N/A N/A 2029 INFRA 4 Skyway Connectivity Project (Bille to Wagstaff) 2026 2027 2029 INFRA 5 Paradise ATP Gateway Project (Neal Road Class I) 2026 2027 2029 Match 1 On-System Road Rehabilitation Complete Complete 2027 Match 2 Off-System Road Rehabilitation Complete Complete 2026 Match 3 Early Warning System Complete Complete Complete Match 4 Hazardous Fuel Reduction Program Complete 2024 2026 Match 5 Neal Road Rehabilitation Complete Complete 2029 Match 6 On-System Culvert Replacement Complete Complete Complete Match 7 On-System Hardscape Replacement Complete Complete Complete Match 8 Off-System Culvert Repair Complete Complete Complete Match 9 On-System Sign Replacement Complete Complete Complete MIT 1 Private Road Identification Safety Project 2026 2026 2027 MIT 2 Storm Drain Resiliency Project 2027 2028 2029
MIT 3 Storm Drain Resiliency Project Phase 2 2027 2028 2029 198
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-DR Infrastructure Action Plan 26-0609
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199

Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 6(f)
ORIGINATED BY: Marc Mattox, Assistant Town Manager
REVIEWED BY: Jennifer, Macarthy Town Manager
SUBJECT: Paradise Sewer Project Alternative Progression

LONG TERM
RECOVERY PLAN:

Yes – Tier 1, Sewer
COUNCIL ACTION REQUESTED:

1. Consider adopting Resolution No. 2026-___, "A Resolution of the Town Council of the Town of Paradise Modifying the Paradise Sewer Project Description to Include a Hybrid Gravity/Low Pressure Collection System, Membrane Bioreactor Wastewater Treatment Facility, and Surface Water Discharge," consistent with the recommendation of the Sewer Project Ad Hoc Committee and based upon the findings of subsequent site suitability investigations completed following Council action on August 14, 2025.

2. Direct staff to proceed with environmental review, permitting, preliminary engineering, site acquisition activities, and funding pursuits consistent with the modified project description.

3. Direct staff to continue pursuing state, federal, and other funding opportunities necessary to maximize the Phase 1 Sewer Service Area and preserve opportunities for future system expansion. (ROLL CALL VOTE) Background:

The Town of Paradise has pursued development of a centralized wastewater collection and treatment system for decades to address failing septic systems, protect groundwater quality, support housing development, and facilitate economic recovery. Following the 2018 Camp Fire, the need for sewer infrastructure became increasingly critical as the Town sought to rebuild commercial districts, increase housing opportunities, and provide modern public infrastructure necessary to support long-term resiliency.

In 2022, the Town secured approximately $30 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funding to advance environmental review, engineering design, permitting, and pre-construction activities associated with the Paradise Sewer Project. The original project concept envisioned construction of a regional collection system serving approximately 1,500 parcels and conveying wastewater to the City of Chico's Water Pollution Control Plant for treatment. To advance that effort, the Town retained HDR as Owner's Agent and subsequently procured a Progressive Design-Build Team consisting of Mountain Cascade and Carollo Engineers. Development of the Basis of Design Report ultimately determined that the regional project would exceed $400 million in total implementation costs and was unlikely to be 200
financially feasible.

In response, the Town Council conducted a Special Meeting on January 21, 2025 and directed staff to evaluate local treatment alternatives capable of delivering a phased wastewater project at a substantially lower cost while maintaining the ability to expand service in the future.

Concurrently, the Town Council established a Sewer Project Ad Hoc Committee consisting of Mayor Steve Crowder and Councilmember Heidi Lange to assist with evaluation of alternatives and increase public engagement throughout the decision-making process.

Over the following seven months, the Sewer Project Ad Hoc Committee, supported by Town staff, Paradise Irrigation District staff, Paradise Irrigation District Board Members, HDR Engineering, regulatory agencies, community stakeholders, and industry experts, participated in an extensive alternatives analysis process. Activities included:
• Public workshops and community meetings;
• Community polling and stakeholder outreach;
• Meetings with local residents and wastewater industry representatives; • Facility tours of wastewater treatment systems throughout California; • Consultation with equipment manufacturers and treatment technology providers;
• Collection system hydraulic modeling;
• Comparative evaluations of collection, treatment, and effluent disposal technologies;
• Comparative capital and operational cost analyses; and • Ongoing coordination with funding and regulatory agencies.

Through this process, the Ad Hoc Committee narrowed the project to three principal alternatives for detailed evaluation:

Alternative 1: Hybrid Gravity/Low Pressure Collection System, Aerated Lagoon Wastewater Treatment, and Percolation/Evaporation Pond Disposal.

Alternative 2: Hybrid Gravity/Low Pressure Collection System, Membrane Bioreactor (MBR) Treatment, and Percolation/Evaporation Pond Disposal.

Alternative 3: Hybrid Gravity/Low Pressure Collection System, Membrane Bioreactor (MBR) Treatment, and Surface Water Discharge regulated through a National Pollutant Discharge Elimination System (NPDES) Permit.

Following presentation of the alternatives analysis, cost comparisons, implementation considerations, and public feedback at Special Town Council Meetings on July 24 and August 14, 2025, the Ad Hoc Committee recommended Alternative 1 as the most affordable, scalable, and implementable alternative available at that time. On August 14, 2025, the Town Council unanimously concurred with the Committee's recommendation and directed staff to proceed with environmental review, engineering design, site selection, permitting, and funding activities associated with Alternative 1. A copy of the Paradise Sewer Project Alternatives Analysis Technical Memorandum is included as part of this Agenda Summary.

Since Council action, staff and consultants have advanced environmental review, wastewater treatment facility site investigations, geotechnical analysis, topographic surveys, hydraulic 201
modeling, preliminary engineering, Tribal consultation, and ongoing funding efforts. As these investigations have progressed, additional information regarding the suitability of potential wastewater treatment facility sites and associated effluent disposal requirements has become available, resulting in the findings and recommendations presented in this Agenda Summary.

Analysis:

Alternative 1 Site Suitability Findings
Following Town Council direction on August 14, 2025, staff immediately commenced implementation activities associated with Alternative 1, consisting of a Hybrid Gravity/Low Pressure Collection System, Aerated Lagoon Wastewater Treatment Facility, and Percolation/Evaporation Pond Effluent Disposal. Over the subsequent nine months, the project team advanced environmental review, preliminary engineering, site selection, hydraulic modeling, topographic surveys, geotechnical investigations, regulatory coordination, Tribal consultation, and funding efforts necessary to move the project toward design and permitting.

A critical component of Alternative 1 was the identification of a wastewater treatment facility site capable of accommodating both treatment infrastructure and a long-term percolation/evaporation pond disposal system. Because the feasibility of Alternative 1 depended upon the ability to infiltrate treated effluent into the underlying soils, site suitability became one of the highest priority implementation activities following Council direction.

Beginning in late 2025 and continuing throughout 2026, the Town completed environmental surveys, negotiated right-of-entry agreements, evaluated multiple potential wastewater treatment facility locations, completed desktop geotechnical reviews, performed field investigations, and initiated subsurface exploration activities to determine whether candidate sites possessed the characteristics necessary to support the proposed treatment and disposal approach. These efforts were documented through monthly project updates provided to the Town Council.

While several potential sites were initially identified as candidates for further evaluation, subsequent investigations revealed significant limitations associated with the soil conditions necessary to support a percolation-based disposal system at the scale required for the Paradise Sewer Project. Specifically, the sites capable of serving the Town's Phase 1 service area while preserving a reasonable pathway for future expansion do not possess sufficient percolation characteristics to reliably support the long-term disposal requirements associated with Alternative

1. Ad Hoc Committee Recommendation and Alternative 3 Evaluation Following review of the site investigation findings, treatment alternatives, permitting considerations, funding implications, and project implementation constraints, the Sewer Project Ad Hoc Committee reviewed staff's recommendation to transition from Alternative 1 to Alternative

3. The Committee, comprised of Mayor Steve Crowder, Councilmember Heidi Lange, Paradise Irrigation District Board Members, Paradise Irrigation District staff, and Town staff, concurred that Alternative 3 now represents the most feasible, scalable, and implementable path forward for the Paradise Sewer Project given the limitations identified with percolation-based disposal and recommends the Town Council modify the project description accordingly in order to continue advancing a fundable, permittable, scalable wastewater collection and treatment solution for the community.
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Importantly, this conclusion does not invalidate the broader alternatives analysis completed in 2025. Rather, the site investigations have served to further refine the alternatives previously evaluated by the Ad Hoc Committee and Town Council. During the 2025 Local Alternatives Analysis process, Alternative 3 was identified as a technically viable option capable of meeting project objectives without relying upon large-scale infiltration capacity. Alternative 3 consists of a Hybrid Gravity/Low Pressure Collection System, Membrane Bioreactor (MBR) Wastewater Treatment Facility, and treated surface water discharge regulated through a National Pollutant Discharge Elimination System (NPDES) Permit.

Unlike Alternative 1, Alternative 3 does not require extensive percolation capacity for effluent disposal. As a result, the primary constraint identified during site investigations is substantially reduced, allowing the Town greater flexibility in siting a treatment facility while maintaining the phased implementation strategy previously directed by the Town Council.

Collection System Evaluation
The collection system component of the project remains unchanged from Alternative 1 to Alternative 3. The proposed Hybrid Gravity/Low Pressure Collection System combines traditional gravity sewer mains along major corridors and lower-elevation portions of the service area with low pressure sewer connections, such as Septic Tank Effluent Pump (STEP) connections, in locations where gravity service would be significantly more costly or difficult to construct. This hybrid approach allows the project to serve low-lying neighborhoods and parcels where traditional gravity systems otherwise could not.

Under the STEP approach, wastewater solids remain within individual septic tanks while clarified effluent is conveyed through small-diameter pressurized piping to the centralized treatment facility. Following community interest in evaluating a full STEP collection system in lieu of the proposed hybrid collection approach, the Town retained Carollo Engineers to independently review the concept and evaluate its technical feasibility. Carollo's review considered the proposed Phase 1 service area, potential wastewater treatment facility locations, future system expansion requirements, system operating pressures, and information provided by community advocates supporting the concept.

Carollo's analysis determined that a full STEP collection system presents a fundamental hydraulic constraint due to the topography of the Paradise Ridge. Elevation differences between the proposed wastewater treatment facility locations under consideration and the desired Phase 1 service area, particularly when accounting for future system expansion and ultimate build-out conditions, would require portions of the system to operate at pressures substantially exceeding those typically associated with low-pressure STEP collection systems. As a result, the system would no longer function as a conventional low-pressure STEP system and would require infrastructure and operating conditions inconsistent with the intended collection approach.

Carollo's outreach to industry contacts, community referrals, and agencies familiar with similar systems further supported the conclusion that a full STEP collection system is not appropriate for the Paradise Sewer Project. The analysis concluded that the Town's proposed hybrid collection strategy, utilizing STEP connections in appropriate low-lying areas while maintaining gravity conveyance where necessary, remains the most viable and technically feasible collection approach. Findings from Carollo's review will be presented directly to the Town Council as part of this agenda item.
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Recommended Path Forward
Staff recognizes that Alternative 3 introduces additional treatment complexity, operational requirements, and permitting obligations compared to Alternative 1. During the 2025 alternatives analysis, these factors contributed to Alternative 1 being identified as the preferred alternative due to its relative simplicity and affordability. However, the subsequent site suitability investigations completed since August 2025 have materially changed the practical feasibility of Alternative 1. While Alternative 3 may carry higher treatment and operational costs, Alternative 3 now represents the most realistic, implementable, and scalable path available for advancing the Paradise Sewer Project.

Advancing Alternative 3 at this time will allow the Town to continue momentum on environmental review, permitting, preliminary design, and funding pursuits while maintaining the overall objective established by the Town Council: delivery of a phased, fundable, permittable, and expandable wastewater collection and treatment system capable of supporting Paradise's long-term recovery and growth.

Financial Impact:

At the time of Town Council action on August 14, 2025, the Paradise Sewer Project had approximately $66.75 million in secured funding and identified approximately $28 million in probable funding through the State Water Resources Control Board's Clean Water State Revolving Fund Program. Based on the project information available at that time, Council selected Alternative 1 in part due to its affordability and lower anticipated operations and maintenance costs relative to the other alternatives under consideration.

Since that action, the Town has continued an aggressive funding strategy while advancing environmental review, design, permitting, and site investigations. As of June 2026, the Town has secured approximately $124 million toward implementation of the Paradise Sewer Project and continues to identify an additional $30 million to $75 million in probable future funding opportunities through ongoing discussions with the State Water Resources Control Board.

Collectively, identified funding opportunities have increased from approximately $94.75 million at the time of Council action in August 2025 to between $154 million and $199 million today. This significant increase in available and probable funding substantially improves the Town's ability to deliver a larger and more comprehensive Phase 1 project than was contemplated during the 2025 alternatives analysis. Consistent with the recommendations of the Sewer Project Ad Hoc Committee, staff's objective is to leverage this improved funding position to maximize the initial service area and customer base, recognizing that utility affordability improves as fixed capital and operational costs are distributed across a greater number of connections.

While Alternative 3 is anticipated to increase treatment facility capital costs and long-term operational costs relative to Alternative 1 due to the use of Membrane Bioreactor (MBR) treatment technology and associated discharge requirements, the Town's overall funding position has strengthened substantially since August 2025. As a result, advancing Alternative 3 while continuing to aggressively pursue additional grant funding represents the most practical path toward project implementation.

In parallel with advancing environmental review and preliminary design, staff will continue pursuing funding certainty and refining project cost estimates. The Town's objective remains 204
maximizing the number of parcels served within the initial project phase while preserving a scalable framework for future expansion. As with all utility systems, achieving economies of scale is critical to long-term financial sustainability. Expanding the service area and customer base served by the initial phase helps distribute capital and operational costs across a larger number of users, thereby improving overall affordability and utility performance. At the present time, key project variables including the ultimate number of parcels served, treatment facility location, discharge permit requirements, and final project scope remain under development and will materially influence future utility rate modeling and evaluation of previously contemplated Town rate subsidy commitments.

Staff anticipates presenting a comprehensive utility rate study, proposed rate structure, and robust public outreach campaign prior to initiating the Proposition 218 process for formal rate adoption.

All of this work must wait until environmental review is complete and design has sufficiently progressed, but occur prior to Town Council consideration of a construction contract authorization.

This approach will ensure that property owners and future ratepayers have the benefit of substantially complete project information before any rates are considered for adoption.

Performing this analysis now without a permittable discharge location for wastewater treatment or knowing how many customers could be served by the project will yield inaccurate and misleading results.

Attachments:

Alternatives Analysis Technical Memorandum Paradise Sewer Project dated January 15, 2026 205

TOWN OF PARADISE
RESOLUTION NO. 26-__

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE MODIFYING

THE PARADISE SEWER PROJECT DESCRIPTION PREVIOUSLY ADOPTED ON AUGUST 14, 2025, TO INCLUDE A HYBRID GRAVITY/LOW-PRESSURE

COLLECTION SYSTEM, MEMBRANE BIOREACTOR WASTEWATER TREATMENT FACILITY, AND SURFACE WATER DISCHARGE.

WHEREAS, the 2018 Camp Fire caused unprecedented damage to the Town of Paradise and created a need for critical infrastructure investments to support long-term community recovery and resiliency; and
WHEREAS, the Paradise Sewer Project is a cornerstone recovery initiative intended to address failing septic systems, protect groundwater resources, support housing development, facilitate economic recovery, and provide critical public infrastructure necessary for long-term community growth; and WHEREAS, on January 21, 2025, the Town Council directed staff to evaluate local wastewater treatment alternatives capable of delivering a phased wastewater project at a substantially lower cost than the previously evaluated regional conveyance project while maintaining the ability to expand service in the future; and WHEREAS, the Town Council established a Sewer Project Ad Hoc Committee consisting of Mayor Steve Crowder and Councilmember Heidi Lange to assist with evaluation of alternatives and increase public engagement throughout the decisionmaking process; and WHEREAS, over a seven-month period, the Sewer Project Ad Hoc Committee, supported by Town staff, Paradise Irrigation District staff, Paradise Irrigation District Board Members, HDR Engineering, regulatory agencies, community stakeholders, and industry experts participated in an extensive alternatives analysis process that included public workshops, community outreach, facility tours, technology evaluations, hydraulic modeling, cost analyses, and regulatory coordination; and WHEREAS, on August 14, 2025, the Town Council adopted Resolution No. 2025- 67 selecting Alternative 1, consisting of a Hybrid Gravity/Low-Pressure Collection System, Aerated Lagoon Wastewater Treatment Facility, and Percolation/Evaporation Pond Effluent Disposal, and directed staff to proceed with environmental review, engineering design, site selection, permitting, and funding activities; and WHEREAS, following Council direction, staff advanced environmental review, preliminary engineering, site selection, topographic surveys, hydraulic modeling, geotechnical investigations, Tribal consultation, regulatory coordination, and funding efforts necessary to advance project implementation; and WHEREAS, subsequent site suitability investigations determined that sites capable of serving the Phase 1 project area while preserving opportunities for future expansion do not possess sufficient percolation characteristics to reliably support the longterm disposal requirements associated with Alternative 1; and 206

TOWN OF PARADISE
RESOLUTION NO. 26-__
2 WHEREAS, Alternative 3, consisting of a Hybrid Gravity/Low-Pressure Collection System, Membrane Bioreactor Wastewater Treatment Facility, and Surface Water Discharge regulated through a National Pollutant Discharge Elimination System Permit, was previously identified during the Local Alternatives Analysis as a technically viable project alternative; and
WHEREAS, following review of the site investigation findings, treatment alternatives, permitting considerations, funding implications, and project implementation constraints, the Sewer Project Ad Hoc Committee concurred that Alternative 3 now represents the most feasible, scalable, and implementable path forward for the Paradise Sewer Project and recommends modification of the project description accordingly; and WHEREAS, since August 2025, the Town's funding position has strengthened substantially, increasing from approximately $66.75 million in secured funding to approximately $124 million in secured funding, while continuing to identify additional probable funding opportunities to support implementation and expansion of the Phase 1 service area.

WHEREAS, The Ad Hoc committee determined Alternative 1 to be best whole project alternative to meet project objectives of being fundable, permittable and scalable to provide maximum benefit for the community.

NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Paradise as follows:

Section 1. The Town Council hereby finds that information obtained through subsequent site suitability investigations completed following adoption of Resolution No. 2025-67 has demonstrated that Alternative 1 is no longer the most feasible project alternative for implementation of the Paradise Sewer Project.

Section 2. The Town Council hereby modifies the Paradise Sewer Project description to consist of a Hybrid Gravity/Low-Pressure Collection System, Membrane Bioreactor Wastewater Treatment Facility, and Surface Water Discharge regulated through a National Pollutant Discharge Elimination System Permit (Alternative 3).

Section 3. The Town Council directs staff to continue advancing the Paradise Sewer Project through environmental review, permitting, site acquisition, engineering design, funding pursuits, and related implementation activities consistent with the modified project description.

Section 4. The Town Council directs staff to continue pursuing state, federal, and other funding opportunities necessary to maximize the Phase 1 Sewer Service Area, improve project affordability through economies of scale, and preserve opportunities for future system expansion.

Section 5. The Town Council affirms its continued commitment to development of a phased, fundable, permittable, scalable, and expandable wastewater collection and treatment system capable of supporting Paradise's long-term recovery, economic development, and housing objectives.
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TOWN OF PARADISE
RESOLUTION NO. 26-__
3 PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 9 th
day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Steve Crowder, Town Mayor
ATTEST:

By:

Melanie Elvis, Town Clerk
APPROVED AS TO FORM:

By:

Scott E. Huber, Town Attorney
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Table of Contents

1. Introduction .............................................................................................................................. 1

2. Collection System Alternatives ................................................................................................. 1

3. Treatment Alternatives ............................................................................................................. 2

4. Discharge Alternatives ............................................................................................................. 3

5. Recommendation ..................................................................................................................... 3 Appendix A – Special Town Councial Meeting Presentation Slides (July 24, 2025) .................... A-1 Appendix B – Collection System Capital Cost Estimates ............................................................. B-1 Appendix C – Treatment & Discharge Capital Cost Estimates .................................................... C-1 Appendix D – Special Town Councial Meeting Presentation Slides (August 14, 2025) ................ D-1 211
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1. Introduction
The Town of Paradise (Town) is implementing the Paradise Sewer Project (Project) to construct a wastewater infrastructure system. In January 2025, the Project transitioned from a regionalization project where wastewater was to be sent to the Chico Wastewater Treatment Plant to a local wastewater treatment facility (WWTF). The Town also established an Ad Hoc Committee to increase project momentum while keeping the public apprised of project progress to find a fundable, permittable, scalable wastewater collection and treatment solution.

HDR, as the Town’s Owner’s Advisor, analyzed various options for the collection, treatment, and discharge components of a sewer system. Public engagement was a significant input in the analysis, which consisted of: (1) engaging the Regional Water Quality Control Board, (2) soliciting vendor proposals, (3) soliciting community input, and (4) in-person and virtual tours of wastewater municipalities with collection and treatment alternatives under consideration. The alternatives were presented to the Town’s Ad Hoc Committee in June 2025. HDR narrowed the collection, treatment, and discharge components to three whole project alternatives, and the Ad Hoc Committee selected one alternative to further analyze.

The purpose of this Technical Memorandum is to summarize the findings of the alternatives analysis effort. Each whole project alternative (collection, treatment, and discharge) must meet the following criteria: affordable, scalable, and permittable. These criteria are expanded upon in Appendix A. This Technical Memorandum is intended to inform policy direction and preliminary project definition. It does not constitute environmental analysis, findings, or conclusions under the California Environmental Quality Act (CEQA), which will be addressed through the Town’s Subsequent Programmatic Environmental Impact Report.

2. Collection System Alternatives
Three collection system alternatives were considered for the revised project scope. These alternatives were:

1. Gravity sewer

2. Septic Tank Effluent Pumping (STEP) System

3. Hybrid Gravity/STEP
Each collection system alternative was evaluated for feasibility and conceptually ranked based on the following criteria: capital cost, operation and maintenance (O&M) cost, social and environmental impacts, implementation requirements, operational complexity, and scalability.

A hydraulic model of the Town was used to evaluate the three alternatives feasibility and determined that the STEP alternative was infeasible due to the topography of the Town. A change in elevation of over 810 feet results in a 350 psi static pressure at the bottom of the sewer service area that exceeds the STEP manufacturer’s limit of 108 psi. The STEP alternative was also anticipated to have the highest O&M cost based on WWTP operator feedback from the Town’s tour with municipalities that currently use STEP systems. 212
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A gravity sewer overall has the lowest O&M cost, operational complexity, and scalability, but has the highest capital cost and highest social and environmental impacts due to an anticipated longer construction duration for deeper pipelines.

The hybrid gravity/STEP alternative consists of shallow gravity trunk pipelines and gravity service or STEP service connections depending on the specific service elevation relative to the gravity trunk pipeline. This hybrid gravity/STEP alternative can leverage the benefits of both the gravity and STEP alternatives at an estimated lower capital and O&M cost than the gravity alternative. The Ad Hoc Committee selected the hybrid gravity/STEP alternative further evaluation. For planning-level evaluation purposes, this analysis assumes that the Town will establish a formal policy framework defining ownership, operation, maintenance, and replacement responsibilities for STEP system components, consistent with practices observed in comparable agencies. Final determinations regarding private-side versus public-side responsibilities will be established through future ordinances, standards, and customer agreements.

3. Treatment Alternatives
After the in-person and virtual tours of wastewater municipalities, and meeting with community members, vendor representatives, and WWTP operators, the treatment options were narrowed down to four for further evaluation. These alternatives were:

1. Aerated lagoon

2. Fixed growth (i.e., biotrickling filter)

3. Activated sludge (i.e., AeroMod or oxidation ditch)

4. Pre-packaged, pre-designed membrane reactor (MBR)
Each option was conceptually ranked for the following criteria: capital cost, O&M cost, scalability, footprint, readiness for reuse or surface water discharge, operational complexity, and energy use. This evaluation is shown on slide 49 of Appendix A.

The aerated lagoon option was expected to have the lowest capital cost, lowest annual O&M costs, simplest operational complexity, and the lowest energy use. However, it was also expected to have the largest footprint and require the most upgrades to meet reuse or surface water discharge requirements. The MBR option was expected to have the highest capital cost, highest annual O&M costs, most complex operation, and the highest energy use. However, it was also expected to have the smallest footprint, greatest ability scale-up, and would require the least upgrades to meet water reuse or surface water discharge requirements.

Based on these rankings and feedback received from community members and WWTP operators, the Ad Hoc Committee selected the aerated lagoon and the MBR alternatives for further evaluation. Selection of the aerated lagoon treatment option reflects a deliberate Phase 1 strategy to optimize affordability, operational simplicity, and permitting feasibility. This selection does not preclude future system upgrades, conversion, or supplemental treatment processes to support expanded reuse or surface water discharge as flows increase and additional funding becomes available.
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4. Discharge Alternatives
Three discharge options were considered:

1. Surface water discharge

2. Land discharge

3. Water reuse
Reuse is very important to the Town. However, it would add more capital and O&M annual costs to the Project, reducing the scale for the rest of the Project. Therefore, it was decided reuse was not a reasonable solution at this time, but to consider it again in future phases if funding becomes available.

Land discharge has the simplest operation and less stringent limits. Two land discharge options were evaluated: spray irrigation and evaporation/percolation pond. Spray irrigation would require more land to support agricultural operations than a discharge pond. Treatment and discharge ponds will be designed in coordination with the Butte County Mosquito and Vector Control District and will incorporate design and maintenance features intended to discourage mosquito breeding. Ongoing coordination during design will inform final pond geometry, circulation, access, and maintenance protocols.

Surface water requires less land than the land discharge options. However, surface water discharge has more stringent water quality limits and treatment requirements than land discharge. When those limits are not met, the Town would be charged significant fines. Surface water discharge also requires more lab testing and monitoring, leading to a higher annual O&M cost. The Regional Water Quality Control Board recommended the Project start with land discharge and evaluate changing to surface water discharge in future phases as wastewater flows increase.

Surface water discharge and an evaporation/percolation discharge pond were chosen by the Ad Hoc Committee for further evaluation.

5. Recommendation
The Ad Hoc Committee selected three whole project alternatives to further analyze. The whole project alternatives are:

1. Hybrid Gravity/STEP collection system, aerated lagoon treatment, and an evaporation/percolation land discharge pond

2. Hybrid Gravity/STEP collection system, MBR treatment, and an evaporation/percolation land discharge pond

3. Hybrid Gravity/STEP collection system, MBR treatment, and surface water discharge HDR developed planning level capital cost estimates, in Appendices B and C, for the whole project alternatives. Alternative 1 (hybrid Gravity/STEP collection system, aerated lagoon treatment, and an evaporation/percolation land discharge pond) was the lowest-cost alternative.

The Ad Hoc Committee recommended proceeding with this alternative. 214
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A Special Town Council Meeting was held on July 24, 2025, to present the three whole project alternatives to Town Council. Appendix A includes the presentation slides for this meeting. The Ad Hoc Committee recommended Town Council approve a revised project description for Alternative 1: Hybrid Gravity/STEP collection system, aerated lagoon treatment, and an evaporation/percolation land discharge pond. The anticipated capital cost for Alternative 1 is within the Town’s grant funding budget, can be expanded and scaled-up in the future, and is supported by the Regional Water Quality Control Board.

A Special Town Council Meeting was held on August 14, 2025, for the Town Council to vote on the revised project description. Appendix D includes the presentation slides for this meeting.

The Town Council unanimously voted to proceed with Alternative 1 (Hybrid Gravity/STEP collection system, aerated lagoon treatment, and an evaporation/percolation land discharge pond). While Alternative 1 represents the lowest-cost and most operationally feasible alternative evaluated, full project delivery remains contingent upon future funding actions, including potential amendments to the Town’s CDBG-DR Infrastructure Action Plan and approval of additional state and federal funding allocations.
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Appendix A – Special Town Councial Meeting
Presentation Slides (July 24, 2025)
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Meeting Overview
Part 1: Introductions and Background
Part 2: Project Alternative Analysis Process
Part 3: Summary of Alternatives
Part 4: Ad Hoc Recommendation & Next Steps
Part 5: Public Comments
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History
• 1969 Butte County General Plan Water and Sewer Element • 1972 Basin Sewer Service Area Plan
• 1975 Montgomery Engineering Report
• 1983 Phase I Wastewater Management Study
• 1984 Phase I Supplemental Study
• 1985 Phase II Wastewater Management Study
• 1989 Feasibility study
• 1990 Wastewater District Formed for Commercial only
• 1993 Council action abandoned sewer project
• 1994 Downtown Master Plan
• 2011 Wastewater Treatment & Collection Feasibility Study • 2017 Paradise Sewer Project Feasibility Study
• 2020 Paradise Sewer Project HDR Engineering Phase I
• 2022 Paradise Sewer Project Environmental Impact Report • 2024 Collection System and Export Pipeline Basis of Design Report
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Background
2022 Programmatic
Environmental
Impact Report
2023 ParadiseChico
Inter-Municipal
Agreement
2024 Progressive
Design Build Team
Hired
2025 Basis of
Design Report
Cost Increases
Funding Decreases
January 2025
Special Meeting
Change to Local
Treatment Project
Ad Hoc
Committee
Established
Public Outreach &
Local Alternatives
Analysis
July 24, 2025
Present Findings
(TONIGHT)
Review Public
Input
August 14, 2025
Consider Formal
Action
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Sewer Project Ad Hoc Committee
• Committee Purpose: Increase project momentum while keeping the public apprised of project progress to find a fundable, permittable, scalable wastewater collection and treatment solution.
• Members:
o Mayor Steve Crowder
o Councilmember Heidi Lange
o Town Manager Jim Goodwin
o Town Staff: Marc Mattox, Colin Nelson,
Chris Nicoletti
o Paradise Irrigation District: Kevin Phillips,
Bob Mathews, Marc Sulik
o Technical Advisory – HDR Representatives
o Regulatory Advisory – Regional Water
Quality Control Board
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Revised Project Within Budget
• Achieve goals of Ad Hoc Committee
(fundable, permittable, scalable
wastewater collection and treatment
solution)
• Emphasis on delivering an affordable
Phase 1 Project with reduced Collection
System Area and sited treatment facility
and dispersal method.
• Utilize funding secured and probable as
quickly as possible to deliver a project –
now!
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Funding Overview
Secured Funding
1) CDBG-DR APA-2 Design $30,000,000 (active for pre-construction) 2) CDBG-DR Town Allocation $35,000,000 (secured for construction) 3) EPA Community Grand $1,750,000 (pending)
Clean Water SRF Funding Opportunities
4) Clean Water SRF (Grant) $28,097,669
5) Clean Water SRF (Grant) $TBD Future
Additional Funding Pursuits (Future Project Phases)
6) USACE 219 – Initial Request $2,000,000
7) USACE 219 – Remaining Butte County Allocation $48,000,000 Secured & Probable Funding available for the whole project “Cost to Complete” Budget $84,847,669 (Sum of 1-4 minus $10M expended to date)
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Alternative Analysis Process
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Project Alternatives Analysis Activities
January
• Council decision to pursue
local treatment options &
reform the Sewer Project
Ad Hoc Committee – 1/21
• Ad Hoc Committee first
meeting – 1/30
February
• Public vendor solicitation
published – 2/18
• Water Board engagement
March
• Community Input Meeting
– 3/6
• Community Poll – 3/6-3/27
• PID participation in Ad Hoc
Committee begins
April
• Met with community
members & equipment
vendors about the project
May
• Staff & Council trip to
Washington DC
• Submitted Army Corps LOI
June
• Wastewater facility tours
– 6/3-6/4
• Virtual meetings with
additional agencies
• Project Alternatives
Workshops – 6/23-6/24
July
• Ad Hoc Committee
Recommendation
• Special Town Council
Meeting – 7/24
August
• Community feedback on
recommendation
• Special Town Council
Meeting – 8/14
• Town Council Approval of a
recommended alternative
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Community, Industry, and Public Agency
Input Meetings
Community Members
• Jeff Gillingham
• Cliff Jacobsen
• Bill Kellog
• Kelly Konzelman
• Dana Ripley
Public Agency In-Person Facility Tours
• City of Biggs WWTP
• City of Mt. Shasta WWTP
• Nevada County Lake of the Pines WWTP
• Placer County – North Auburn Sewer
Maintenance District 1
• Rio Alto Water District WWTP
Equipment Vendors
• AeroMod
• BioFiltro
• Cloacina
• Fluidyne
• Green Toilet
• Innovatreat
Virtual Facility Tours
• Amador County
• Butte College
• City of Eureka
• City of St. Helena
• Community of Robbins
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Community Input – Jeff Gillingham
• Low Pressure Force Mains
• Mains at ~40-50 psi
• Pumps at each service connection
• Does not require a leach field
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Community Input – Cliff Jacobson
• STEP Collection System
• Pump wastewater from Septic Tank into collection
system
• Solids stay in tank
• Pressurized collection system
• Biotrickling Filter Treatment System
• Reuse Discharge
• Irrigation or Fire Cannon
• Recycled water back to homes
STEP collection
(Photo courtesy of Orenco Systems)
Fire cannon
228 (Photo courtesy of https://www.purityfire.com/other-fire-equipment/manual-fire-monitor.html) TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Community Input – Bill Kellog
• Constructed Wetlands
• Allows infiltration and evaporation naturally
• Removes pollutants through biological, chemical,
and physical means
• Would take place of leach lines
• Needs large area
Constructed Wetland Diagram
(Courtesy of https://www.globalwettech.com/about-constructed-wetlands.html) 229
TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Community Input – Kelly Konzelman
• Jet Packaged Plants
• 35,000 – 50,000 gpd each
• 14 installations around Paradise for full buildout
• Smaller leach fields
• Smaller footprints
• Can be installed underground
Jet Packaged Plant Diagram
(Photos courtesy of Jet Wastewater Treatment Solutions) 230
TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Community Input – Dana Ripley
• Orenco STEP systems
• Pump wastewater from Septic Tank into collection
system
• Solids stay in tank
• Pressurized collection system
• Attached-Growth Multi-Stage Trickling Filters
• Four tower system
• Wastewater sprayed over attached-growth media
• Purple Pipe Reuse

0.5 MGD Facility
(Photo courtesy of Dana Ripley)
STEP collection
231 (Photo courtesy of Orenco Systems)
TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Vendor Input – AeroMod
• Pre-designed activated sludge plant
• Includes aeration, settling, recirculation, and
digestion
• Common wall construction
• Easily expandable
• Simple O&M
Paradise Phase 1 Proposal
Quincy, CA (1.1 MGD)
(Photos courtesy of Aero-Mod) 232
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Vendor Input – BioFiltro
• Biodynamic Aerobic BIDA Vermifiltration System
• Layer of soil and worms remove nutrients
• Layer of gravel for filtration
20,000 gpd installation
BIDA Layered Diagram
(Photos courtesy of BioFiltro) 233
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Vendor Input - Cloacina
• Packaged Membrane Bioreactor (MBR)
• Wastewater is filtered through membrane
• Pre-designed
• Built offsite, delivered on truck
• More reactors can be added on to increase capacity
Cloacina MEMPAC-M installation
(Photos courtesy of Cloacina) 234
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Vendor Input – Fluidyne
• Sequencing Batch Reactor (SBR)
• Aeration and settling happens in the same tank
• Can be pre-packaged or custom designed
• 50,000 gpd for one packaged reactor
Underground installation Two packaged SBRs
(Photos courtesy of Fluidyne) 235
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Vendor Input – Green Toilet
• Composting Toilets
• No water or electricity needed
• Created in Finland
• Permitting is challenging in USA, dependent on
region
Composting toilet installation Composting toilet
(Photos courtesy of Green Toilet) 236
TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Vendor Input - Innovatreat
• Membrane Bioreactor (MBR) Skid
• Wastewater is filtered through membrane
• Pre-designed
• Major equipment assembled offsite
• More skids can be added to increase capacity
Typical miniMBR 3D rendering
(Photos courtesy of Innovatreat) 237
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Site Tour – Rio Alto
• Facility Size: 0.1 MGD ADWF
• Collection System: Gravity
• Treatment: Bar screens, oxidation ditch, secondary
clarifier, chlorine disinfection, sludge drying beds
• Discharge: Evaporation/percolation ponds & wetland
with public access walking trails
• Key Takeaways:
• Switched from river discharge due to changing NPDES
river discharge requirements
• Title 22 regulations apply due to public access, but the requirements are easier to meet than for river discharge Oxidation Ditch
Discharge Wetland 238
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Site Tour – City of Biggs WWTP
• Facility Size: 0.38 MGD ADWF
• Collection System: Gravity
• Treatment: Aerated ponds and rock filter
• Discharge: Percolation/evaporation ponds with onsite alfalfa irrigation • Key Takeaways:
• Facility switched from surface discharge to land
discharge due to changing NPDES permit conditions
• Simple operation with only one operator
• Disinfection not required for land discharge without
public access
Bubbler aerator
Aeration Pond
239 Treated Discharge Pond
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Site Tour – Mt Shasta WWTP
• Facility Size: 0.8 MGD ADWF
• Collection System: Gravity
• Treatment: AeroMod activated sludge with nutrient
removal, disc filters, and UV disinfection
• Discharge: Surface discharge to Sacramento river
(winter only); recycled water to neighboring golf
course; and land discharge to subsurface leach field
• Key Takeaways:
• Recently upgraded from ponds to AeroMod due to
changing surface water discharge requirements
• New facilities require more operations staff due to
complexity
• Permit violations include mandatory fines that quickly become expensive
Aero-Mod Structure
Aero-Mod Basins
240
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Site Tour – Nevada County Lake of the
Pines WWTP
• Facility Size: 0.3-0.4 MGD ADWF
• Collection System: mostly gravity with a few STEP
connections
• Treatment: Custom Designed MBR with UV
disinfection
• Discharge: Surface discharge to Magnolia Creek
• Key Takeaways:
• Facility was upgraded due to changing surface
discharge permitting requirements
• Process is more complex, but allows for more finetuned control of effluent quality Influent, Recycle Pumps
Solids Disposal 241
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Site Tour – North Auburn SMD1
• Facility Size: 600 STEP connections; gravity system
includes 55 lift stations
• Collection System: STEP and gravity sections
• Treatment & Discharge: Regional connection to
Lincoln WWTP
• Key Takeaways:
• Property owners are responsible for tanks, but County is responsible for O&M of STEP pumps
• STEP systems require more maintenance than gravity
• STEP users pay an additional monthly fee ($25-50) on
top of base sewer rate
• STEP septic tanks are pumped every 6-9 years
• Redundant power supply is a major concern
• Odor complaints at ARVs at each high point throughout system
Septic Tank & STEP pipe
STEP monitoring station 242
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Virtual Site Tour – Butte College
• Facility Size: 10,000 – 20,000 gpd
ADWF
• Treatment:
• Activated sludge (aeration)
• Settling clarifier
• Discharge: Evaporation Ponds
• Falls under Water Board’s General
Order
Treatment plant (left) and discharge ponds (right)
(Photos from Google Earth) 243
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Virtual Site Tour – City of Eureka
• Facility Size: 5 MGD ADWF
• Treatment:
• Headworks & Screens
• Primary Clarifiers
• Biotrickling Filters
• Secondary Clarifiers
• Discharge: ocean outfall
• Key Takeaways:
• Process is robust with few upsets
• Changing NPDES requirements have
been challenging to meet
(Photos from Google Earth)
Biotrickling filters (top, white circles), clarifiers, and effluent storage (right) [Solids pond and ocean outfall not shown] 244
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Virtual Site Tour – City of St Helena
• Facility Size: 0.5 MGD ADWF
• Treatment: Transitioning from aerated lagoons to
packaged MBR
• Discharge: river discharge in the winter, spray
irrigation in summer
• Key Takeaways:
• MBR is very modular in operation
• Startup has been challenging and required more
chemical addition than anticipated
• Energy use increased 20-30%
Treatment ponds (top) and spray
irrigation (bottom)
(Photos from Google Earth) 245
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Virtual Site Tour – Community of
Robbins
• Facility Size: Less than 100 connections
• Collection System: STEP only
• Treatment: Prefabricated Orenco activated sludge
treatment
• Discharge: Evaporation ponds
• Key Takeaways:
• STEP was implemented due to high groundwater that
limited construction depth for gravity
• County takes responsibility for O&M for septic tanks
and STEP pumps
• STEP tanks pumped every 4 years on average
• County employs a contract operator for STEP collection and treatment system O&M
Package
Treatment
System
Robbins Service Area & Treatment Plant
(Photos from Google Earth) 246
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Virtual Meeting – Amador County
• Have both STEP and gravity connections
• No longer allowing new STEP connections
• STEP users pay an additional monthly fee for O&M
• County receives 400 work orders per year for 500 STEP units 247
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Ad Hoc Committee:

Process Review Comments
Rio Alto Water District Lake of the Pines WWTP 248
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Summary of Alternatives
249
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Project Components
(1) Collection
(2) Treatment
(3) Dispersal
250
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Whole Project Alternatives
251
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Types of Collection Systems
Original Design
Gravity Sewer
• Pipelines installed at a
constant slope
• Minimum velocity required
• Manholes for change in
direction
• Lift stations for change in
elevation
Community Proposal
STEP Sewer
• On-site septic tanks with liquid
effluent pumps at every
property
• Low-pressure pipelines
installed at varying elevation
• Air release valves (ARVs) at
high points and blowoff valves
at low points
• Isolation valves at regular
intervals
Hybrid Proposal
Hybrid Gravity/STEP Sewer
• Gravity trunk lines down
primary corridors remain but
with low-elevation properties
connected via individual
STEP systems at each
property
• Shallower trunk mains than
a pure gravity system
Figures from Orenco Systems Effluent Sewer Design Manual, Rev 3.0, dated 07/2017 252 TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Modeled Maximum Pump Rate -
Gravity
• Majority of pump stations have a maximum
pumping rate of less than 100 gpm
• STEP pumps are typically 5-10 gpm for
single-family residences (Orenco Design
Manual)
Maximum Pumped Flow Count
Less than 20 gpm 18
20 to 50 gpm 9
50 to 100 gpm 2
100 to 150 gpm 2
Greater than 150 gpm 2
< 20 gpm
20-50 gpm
50-100 gpm
100-150 gpm
> 150 gpm
150 gpm
840 gpm
105 gpm
120 gpm
253
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Elevation and System Pressure
• Elevation change of over 810 ft (2,227 ft to 1,410 ft) • Static pressure at the WWTP of over 350 psi
• Orenco high-head pumps max of 108 psi
• Conclusion: A purely low-pressure (STEP) system is
not technically feasible for full-system buildout
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Collection System Implementation
• Capital Costs
• Installation costs expected to be 30% greater for traditional gravity vs. STEP • Constructability
• Open-trench construction is recommended for most of Paradise for STEP or gravity system installation. Directional boring is not compatible with cobbles/rocky geology and uncertain utility locations.
• Sewer pipelines must be installed at a lower elevation than all other utilities per CA regulations.
• Operational Considerations
• Gravity systems must maintain minimum scour 2-3 fps to prevent solids deposition.

Periodic system flushing can mitigate solids deposition for lower flows. • STEP systems have greater O&M demand due to more distributed pump stations (more points of failure, see examples on next slide)
255
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STEP Agency Tours and Feedback
• Placer County – North Auburn SMD1
• County has O&M responsibility for STEP pumps and septic pumping • STEP users pay an additional monthly fee for STEP O&M service • New connections – builder pays for tank/pump, designed to meet County standards • Power safety shutoffs – sewer loses power but water does not • Air relief valves (ARVs) are source of odor complaints • Nevada County – Lake of the Pines & Penn Valley
• Septic effluent-only sent to treatment plants designed for full municipal WW cause operational challenges
• STEP works well after installation but has O&M challenges as system ages • Sutter County – Community of Robbins
• County takes responsibility for tanks and motors – costly to maintain • System not expected to expand due to outside factors (flood zone, treatment capacity) • Amador County
• High O&M and administrative burden – STEP users pay an additional fee • No longer allowing new STEP connections
256
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Septic Effluent-Only Treatment
• Treatment process difference is minimal for STEP or gravity at small flows • Primary treatment is typically not needed for typical domestic wastewater or for septic tank effluent for small flows (see Rio Alto, City of Biggs)
• Both STEP and gravity will require secondary and/or tertiary treatment to meet Water Board discharge requirements
• Solids management strategy is required for all secondary treatment processes to manage biological accumulation
Source: STATE WATER RESOURCES CONTROL BOARD ORDER WQ 2014-0153-DWQ 257 TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Hybrid Gravity/STEP Sewer Concept
• Gravity trunk mains along Skyway, Clark,
Pearson with low-elevation areas/properties
connected via on-site STEP systems
• Most compatible solution for Paradise
• STEP system on individual properties in low
elevation zones
• Owners retrofit existing septic tanks, if in good
condition
• Replaces small grinder pump stations with
regions connected via STEP
• Main trunk lines installed at shallower depth
than original gravity design
• A phase 1 project prioritizing downtown may
not require any central lift stations
Small pump stations that may be able to be
replaced with individual STEP connections
258
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Collection System Design Criteria for Gravity
259
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Collection System Design Criteria for Hybrid — Scenario A 260
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Collection System Design Criteria for Hybrid — Scenario B 261
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Collection System Design Criteria for Hybrid — Scenario C 262
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Collection System Recommendation
• Hybrid Gravity/STEP Collection:
• Gravity trunk mains down Skyway, Clark Rd., and other hydraulic main-line corridors
• Flexibility for low-elevation areas or properties to connect via individual on-site STEP units at each property
• Gravity trunks set at higher elevation than previous gravity systems (set at an engineered depth just below conflicting utilities). • Incorporates benefits of STEP system while maintaining scalability for future system expansion and minimizing operational impacts and user rates
• Phase 1 project to serve downtown may not require any central lift stations
263
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Wastewater Treatment Alternatives
Aerated Lagoon/Pond
City of Biggs
Suspended Growth (Activated Sludge)
Rio Alto Water District Mt. Shasta
Fixed Growth (Trickling Filter)
Sewerage Agency of Southern Marin
Membrane Bioreactor (MBR)
Lake of the Pines 264
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Treatment Alternatives Summary
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Treatment Recommendation
• Recommended Alternative 1: Aerated Ponds
• Most cost effective (Capital and O&M)
• Simple operation – less operator experience required
• Less sensitive to smaller/inconsistent flows
• Largest footprint
• Expand or repurpose ponds to scale up
• Could produce water for agricultural reuse with disinfection • Recommended Alternative 2: MBR
• Highest capital cost and O&M cost
• Can be pre-engineered design and pre-fabricated for quick construction
• Future-proof – high quality effluent can produce tertiary treated water for reuse or surface discharge
• Smallest footprint, can be hidden inside structures
City of Biggs WWTP
St. Helena WWTP
Source: Cloacina
https://www.cloacina.com/municipal-system-upgrade 266
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Example Site Layout – Aerated Ponds
Total area = 17 acres
(including discharge)
267
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Example Site Layout – MBR
Total area = 12 acres
(including discharge)
268
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Project Examples – MBR
City of Hot Springs, Arkansas
Treatment plant is contained inside
facilities modeled after local barns
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Treated Effluent Discharge Alternatives

1. Surface Discharge
• Discharge to creeks, rivers, or
lakes

2. Land Discharge
• Evaporation & percolation
ponds or wetlands
• Crop irrigation (non-food crops)

3. Beneficial Reuse
• “Purple Pipe” or “Title 22” water
• Landscape/golf course irrigation
• Fire suppression
• Crop irrigation
City of Lodi
Rio Alto Water District
Bozeman Water Reclamation Facility
270
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Surface Discharge
• All receiving waters near Town are expected to require tertiary treatment • NPDES Permitting Process
• Requires multiple studies of treated effluent and of receiving waters • Permit renewal every 5 years can have changing requirements • Mandatory Minimum Penalties (MMPs)
• $3,000+ per penalty for exceeding limits
• More difficult to meet limits with low or inconsistent flows • Metals limits can be difficult to meet even with more high-tech secondary treatment
• Permits require frequent sampling & water quality testing CVWQCB strongly recommends avoiding surface water discharge 271 for a Phase 1 project
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Beneficial Reuse – CA Title 22
• Both STEP and gravity collection influent can produce water for reuse, reuse capabilities are dependent on treatment processes
• Agencies operating reuse systems report that it is easier to meet Title 22 requirements than surface discharge permit
• Reuse increases Phase 1 project costs
• Reuse can be implemented in a future project phase
• Specific requirements depend on end-use and potential for human contact:

Uses of Recycled Water CA Title 22
Water Quality Standard
Food crops, parks and playgrounds, schools, residential landscaping, unrestricted golf courses, decorative fountains, structural firefighting Disinfected tertiary
Restricted recreational impoundments Disinfected secondary-2.2 Cemeteries, restricted access golf courses, dairy pastureland, non-edible vegetation with controlled access, landscape impoundments, non-structural firefighting, concrete mixing, dust control
Disinfected secondary-23
Orchards, vineyards, seed crops not consumed by humans, sewer flushing Undisinfected secondary 272
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Reuse Implementation Challenges
• Priority to identify high-volume users (typically golf course, agriculture, parks, etc.) to reduce distribution infrastructure and administrative burden • Demand varies seasonally – requires additional discharge method or large storage reservoir
• Requires additional distribution infrastructure – pumps, piping, etc. (added capital cost and maintenance costs)
• Disinfected reuse distribution piping must maintain minimum horizontal and vertical separation from sewer pipe, per CA regulations Recommendation: Consider reuse in future project phases as more funding becomes available and potential customers are identified 273
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Land Discharge
Rio Alto Water District
City of Biggs
• Permit renewal every 10 years
• Expect to need to meet low total nitrogen
limits (<10 mg/L)
• Typical permit requirements include quarterly
groundwater monitoring
• Irrigation requires greater acreage than
percolation/evaporation pond discharge
• Irrigation may be seasonally limited, requiring
a seasonal storage pond
Recommendation: Land discharge via
percolation/evaporation ponds
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Phase 1 Alternatives for Evaluation
Alt Collection
System
Treatment
Process
Discharge
Strategy
1 Hybrid
Gravity/STEP Aerated Lagoon Land – Perc/Evap Pond
2 Hybrid
Gravity/STEP MBR Land – Perc/Evap Pond
3 Hybrid
Gravity/STEP MBR Surface Water
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Collection System – Phase 1
• Collection system can be reduced to serve
only Skyway from Town limits up to Elliott
and downtown (Pearson/Black
Olive/Elliott/Skyway block)
• 225 total parcels
• 83 currently occupied parcels
• Reduced Phase 1 SSA with hybrid
gravity/STEP collection system has no
central lift stations
• Treatment and disposal sized for 100,000
gpd ADWF
• Estimated startup flow = 40,000 gpd
• Phase 1 gravity main (with 88 STEP
connections) would be installed nearly at
same depth as a STEP pressurized main – and more reliable! Conceptual Phase 1 for cost estimate,
values are approximate
Current
Occupancy
Full Area
Buildout
Total Parcels Served 83 225
Gravity connections 62 167
STEP connections 21 88
ADWF (gpd) 40,000 100,000
PWWF (gpd) 110,000 260,000
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Whole Project Capital Cost Estimate
Project Cost Components
Alternative 1
Hybrid Collection
Aerated Lagoon
Perc/Evap Pond
Alternative 2
Hybrid Collection
MBR
Perc/Evap Pond
Alternative 3
Hybrid Collection
MBR
Surface Water
Engineering & Preconstruction $ 14,000,000 $ 15,000,000 $ 15,000,000 Town, OA (including Environmental) & Legal $ 4,500,000 $ 4,500,000 $ 4,500,000 Real Estate Acquisition & Professional Services $ 5,600,000 $ 5,500,000 $ 5,500,000 Environmental Permit / Agency Costs $ 100,000 $ 100,000 $ 100,000 Environmental Mitigation $ 500,000 $ 500,000 $ 500,000
Collection System Construction $ 51,000,000 $ 51,000,000 $ 51,000,000 Wastewater Treatment & Discharge Construction $ 19,300,000 $ 28,100,000 $ 24,600,000 Engineering Services During Construction $ 3,100,000 $ 3,400,000 $ 3,300,000 Construction Management & Inspection $ 8,300,000 $ 11,000,000 $ 9,900,000 Town Cost & Contingency $ 6,600,000 $ 7,500,000 $ 7,100,000 Estimated Total Project Cost $ 114,000,000 $ 128,000,000 $ 122,000,000 Notes: Costs are escalated to midpoint of construction in 2028 for system sized to 0.1 mgd buildout.

Range of estimate follows Association for the Advancement of Cost Engineering (AACE) guidelines for Class 5 cost estimate (-50% to +100%) – conceptual level estimate 277 TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Cost Estimate Disclaimers
• Cost Exclusions and Disclaimers
• STEP pumps and lateral connections on private property are only included for currently occupied parcels. Lateral stub-outs to property line included for all parcels.
• MBR costs do not include aesthetic improvements (enclosure in a building, burying subsurface, etc.)
• Capital costs do not reflect the operational costs and complexities, especially related to surface discharge (see next slide) • Does not include startup operational costs (i.e., equipment, trucks, etc.)
• ROW costs assume purchase of adequate property to allow for Phase 1 and future expansion(s)
• Costs consider production rates, prevailing wage requirements, and industry standard contingency factors
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Operational Costs & Considerations
MBR
• More complex operation, requires higher level of operator experience • More energy intensive
• Receiving STEP-only influent would likely require chemical/carbon addition to achieve nitrogen removal
Surface Discharge
• Attaining NPDES permit will be a long and challenging process requiring studies on both the treated effluent and the receiving waters • NPDES requirements frequently change (5-year permit cycle) and can require process changes to meet new limits
• Violations will incur minimum penalty fines ($3,000+ per instance) 279
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Example Operating Costs
Agency Treatment Discharge
Flow
(MGD)
2024-25 Sewer
Operating
Cost
(Collection &
Treatment) 2025 Monthly Rates
City of Biggs Aerated
Lagoon Land 0.38 $475,431
Residential/Apartment Total:
$81.35
Base Charge: $72.65
Sewer Improvement Fee:
$8.70
Rio Alto Oxidation
ditch Land 0.1 $792,347 Single Family Residence: $115.52 Lake of the
Pines Custom MBR Surface 0.72 $3,292,509 $157.66/EDU
City of St.

Helena
Packaged
MBR
Surface &
Land 0.5 $4,983,225
Residential Base Charge:
$96.95
Residential Use Charge:
$10.71
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Committed Town Rate Subsidy
• On August 8, 2023, Paradise Town Council conceptually approved a rate subsidy plan...
• The Rate Study would establish potential average rates near $85.66/month (target 2% of MHI).
• The O&M Financing Assistance would establish an up-front operating reserve of $1,200,000 and commit $526,000 annually for the first ten years of the utility’s operation.
• This total commitment was estimated to be $6,460,000. • Source of funds being Paradise Recovery & Operations (PRO) Fund Project Reserves
Rate Subsidy will need to be reviewed in the lens of the revised project scale and project costs (part of larger rate setting requirements). 281
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Ad Hoc Committee Recommendation
Alternative 1: Hybrid Gravity/STEP collection system, aerated lagoon treatment, and land discharge to percolation/evaporation pond(s) • Serves Downtown where growth has lagged
• Optimizes operational costs and rate payer burden
• Serves the mission of the project to be fundable
(affordable), permittable, and scalable to meet
Paradise’s needs today and into the future
• Funding Secured and Probable is $84.8M
• Phase 1 Estimated at $114M
• Town Council has options to consider redirecting
funds to reach a constructable project now.

Mt Shasta WWTP
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Project Forecast
August
• Public
feedback on
proposed
alternative
• Special Town
Council
Meeting –
August 14th, 6-
8 pm
September
• Begin
Subsequent
EIR
• Begin
procurement of
treatment
facility designer
• Resume
funding
application(s)
Fall 2025
• Resume
collection
design
• Begin
wastewater
treatment
facility siting
2026
• Continue
design of
collection &
treatment
facilities
• Complete
Subsequent
EIR
• Begin
Environmental
permitting
• Begin ROW
Acquisition
2027-2029
• Complete
design
• Begin and
complete
construction
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Why is this time different?
• We have the most experienced and capable team to deliver the project with the insight and knowledge from professionals who have built these facilities before. • We know more now about what it takes to build a new sewer utility in Paradise than any preceding approach to this project.
• For the first time in the last 30+ years, the Paradise Sewer Project has a path to construction with funding secured, probable and available. • Town Council has already committed to a rate subsidy as the Sewer is an investment into our recovery.
• Project recommended is the most scalable and affordable to design and construct now and operate into the future
.
• Town has full support of the Regional Board for a local option. • Further delays will reduce our ability to use critical CDBG-DR funds on the project with no replacement source in sight.
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Next Steps
• Receive Public Comments
• 3-Minute Limit (standard Council meeting)
• Need more time? Don’t want to present now? Couldn’t Make it? • To submit comments or schedule a meeting with Town staff to discuss this analysis prior to August 14th, contact Kieran Jellema at [email protected]
• Special Town Council Meeting – August 14th, 6-8pm
• Location: Paradise Performing Arts Center (PPAC)
• 777 Nunneley Road, Paradise, CA 95969
• Objective: Council to provide formal direction to commence efforts on a revised project description including resuming environmental and design efforts
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Thank you for coming!
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Technical Memorandum
hdrinc.com
2365 Iron Point Road, Suite 300, Folsom, CA 95630-8709
T: (916) 817-4700 F: (916) 817-4747 B-1
Appendix B – Collection System Capital Cost
Estimates
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Paradise Sewer Project
CORE COLLECTION SYSTEM UNIT Quantity Unit Cost Subtotal Unit Cost Subtotal Total 15-in PVC Gravity (<10' deep) LF 10,400 120 $ 1,248,000 680 $ 7,072,000 $ 8,320,000 8-in PVC Gravity (<10' deep) LF 6,500 64 $ 416,000 558 $ 3,627,000 $ 4,043,000 Total Gravity Mains $ 1,664,000 $ 10,699,000 $ 12,363,000 48-in Trunk MH (<15' Deep, every 250' gravity pipe) EA 68 7,000 $ 476,000 24,762 $ 1,683,816 $ 2,159,816 Total Manholes $ 476,000 $ 1,683,816 $ 2,159,816
4-in PVC Pressure (<5' deep) LF 11,650 30 $ 349,500 428 $ 4,986,200 $ 5,335,700 Total Forcemain $ 349,500 $ 4,986,200 $ 5,335,700
Sewer Service Lateral (public to property line) EA 255 1,776 $ 452,890 10,910 $ 2,781,958 $ 3,234,848 Sewer Service Lateral (on private property) EA 83 2,241 $ 185,969 13,764 $ 1,142,383 $ 1,328,353 Total Laterals $ 638,860 24,673 $ 3,924,341 $ 4,563,200 Septic Tank and Pump EA 21 7,500 $ 157,500 22,500 $ 472,500 $ 630,000 Total STEP System $ 157,500 22,500 $ 472,500 $ 630,000
SUBTOTAL $ 3,285,860 $ 21,765,857 $ 25,051,716
Escalation (to July 2025) Percent 0.9% $ 225,465
TOTAL $ 25,000,000
Escalation (5%/yr for 3 yrs to 2028 mid-point construction) 5.0% $ 3,750,000 TOTAL w/ Escalation $ 29,000,000
Estimating Contingency 30%
$ 8,700,000
Subtotal $ 37,700,000
Construction bonds, insurance, GC & fee 35%
$ 13,195,000
TOTALS $ 51,000,000
Collection System Materials Installation
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Technical Memorandum
hdrinc.com
2365 Iron Point Road, Suite 300, Folsom, CA 95630-8709
T: (916) 817-4700 F: (916) 817-4747 C-1
Appendix C – Treatment & Discharge Capital Cost
Estimates
289
Paradise Sewer Project
TREATMENT PLANT & DISCHARGE UNIT Quantity Unit Cost Subtotal Unit Cost Subtotal Total Pre-Engineered Building SF 3,700 100 $ 370,000 $ - $ 370,000 Concrete Slab CY 552 900 $ 496,800 $ - $ 496,800
Total Buildings (Lab, admin, storage, etc.) $ 866,800 $ - $ 867,000 Phase 1 Influent Pump Station MGD 0.25 801,500 $ 201,000 $ - $ 201,000 Total Influent Pumping Station $ 201,000 $ - $ 201,000
Screen Equipment EA 1 120,000 $ 120,000 $ - $ 120,000
Concrete Slab CY 1.70 900 $ 1,530 $ - $ 1,530
Concrete Wall CY 4.96 1,500 $ 7,440 $ - $ 7,440
Earthwork CY 18.58 100 $ 1,858 $ - $ 1,858
Total Headworks $ 130,828 $ - $ 131,000
Earthwork CY 31,455 35 $ 1,100,925 $ - $ 1,100,925
Clay Liner SY 12,088 20 $ 241,760 10% $ 24,176 $ 265,936 Aeration System EA 1 370,000 $ 370,000 15% $ 55,500 $ 425,500 MBBR Equipment EA 1 1,250,000 $ 1,250,000 15% $ 187,500 $ 1,437,500 Total Aerated Lagoon $ 2,962,685 $ 267,176 $ 3,230,000
Onsite Water System LS 1 30,000 $ 30,000 $ - $ 30,000
Total Onsite Water/Pumping $ 30,000 $ - $ 30,000
Solids Storage/Thickening LS 1 567,000 $ 567,000 $ - $ 567,000 Solids Drying Beds LS 1 300,000 $ 300,000 $ - $ 300,000 Solids Pumping Station MGD 0.25 1,484,000 $ 371,000 $ - $ 371,000 Total Solids Handling $ 1,238,000 $ - $ 1,238,000
Effluent Pump Station MGD 0.25 801,500 $ 201,000 $ - $ 201,000 Discharge Piping FT 1,000 800 $ 800,000 $ - $ 800,000
Percolation Pond Earthwork CY 48,400 35 $ 1,694,000 $ - $ 1,694,000 Misc. Equipment (flow meter, sampling points, etc.) EA 2 50,000 $ 100,000 $ - $ 100,000 Total Land Discharge $ 2,795,000 $ - $ 2,795,000
SUBTOTAL $ 8,224,313 $ 267,176 $ 8,492,000
Site Piping 1.0% $ 84,920
Site Electrical 1.0% $ 84,920
Instrumentation & Controls 2.0% $ 169,840
Site Work 5.0% $ 424,600
Miscellaneous Metals 1.0% $ 84,920
Miscellaneous Concrete 1.0% $ 84,920
SUBTOTAL w/ ADDERS $ 9,427,000
Escalation (5%/yr for 3 yrs to 2028 mid-point construction) 5.0% $ 1,414,050 Aerated Lagoon & Land
Discharge Materials Installation
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TREATMENT PLANT & DISCHARGE UNIT Quantity Unit Cost Subtotal Unit Cost Subtotal Total Aerated Lagoon & Land
Discharge Materials Installation
TOTAL w/ Escalation $ 11,000,000
Estimating Contingency 30%
$ 3,300,000
Subtotal $ 14,300,000
Construction bonds, insurance, GC & fee 35%
$ 5,005,000
TOTAL $ 19,300,000
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TREATMENT PLANT & DISCHARGE UNIT Quantity Unit Cost Subtotal Unit Cost Subtotal Total Pre-Engineered Building SF 3,700 100 $ 370,000 $ - $ 370,000 Concrete Slab CY 552 900 $ 496,800 $ - $ 496,800
Total Buildings (Lab, admin, storage, etc.) $ 866,800 $ - $ 867,000 Phase 1 Influent Pump Station MGD 0.25 801,500 $ 201,000 $ - $ 201,000 Total Influent Pumping Station $ 201,000 $ - $ 201,000
Earthwork CY 990 35 $ 34,650 $ - $ 34,650
Concrete Liner SF 6,664 25 $ 166,600 $ - $ 166,600
Total Influent EQ Storage $ 201,250 $ - $ 202,000
Screen Equipment EA 1 120,000 $ 120,000 $ - $ 120,000
Concrete Slab CY 1.70 900 $ 1,530 $ - $ 1,530
Concrete Wall CY 4.96 1,500 $ 7,440 $ - $ 7,440
Earthwork CY 18.58 100 $ 1,858 $ - $ 1,858
Total Headworks $ 130,828 $ - $ 131,000
Channel MGD 0.25 152,000 $ 38,000 $ - $ 38,000
Fiberglass grating SF 9.12 85 $ 1,000 $ - $ 1,000
Total Grit Removal $ 39,000 $ - $ 39,000
MBR Equipment EA 1 3,950,000 $ 3,950,000 10% $ 395,000 $ 4,345,000 Concrete Slab CY 130 900 $ 117,000 $ - $ 117,000
Earthwork CY 277 100 $ 27,700 $ - $ 27,700
Building/Awning SF 3,500 50 $ 175,000 $ - $ 175,000
Total MBR Treatment $ 4,269,700 $ 395,000 $ 4,665,000
Onsite Water System LS 1 30,000 $ 30,000 $ - $ 30,000
Total Onsite Water/Pumping $ 30,000 $ - $ 30,000
Solids Storage/Thickening LS 1 567,000 $ 567,000 $ - $ 567,000 Solids Drying Beds LS 1 300,000 $ 300,000 $ - $ 300,000 Solids Pumping Station MGD 0.25 1,484,000 $ 371,000 $ - $ 371,000 Total Solids Handling $ 1,238,000 $ - $ 1,238,000
Effluent Pump Station MGD 0.25 801,500 $ 201,000 $ - $ 201,000 Discharge Piping FT 1,000 800 $ 800,000 $ - $ 800,000
Percolation Pond Earthwork CY 48,400 35 $ 1,694,000 $ - $ 1,694,000 Misc. Equipment (flow meter, sampling points, etc.) EA 2 50,000 $ 100,000 $ - $ 100,000 Total Land Discharge $ 2,795,000 $ - $ 2,795,000
SUBTOTAL $ 9,771,578 $ 395,000 $ 10,167,000
Site Piping 10.0% $ 1,016,700
Site Electrical 10.0% $ 1,016,700
MBR & Land Discharge Materials Installation
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TREATMENT PLANT & DISCHARGE UNIT Quantity Unit Cost Subtotal Unit Cost Subtotal Total MBR & Land Discharge Materials Installation
Instrumentation & Controls 8.0% $ 813,360
Site Work 10.0% $ 1,016,700
Miscellaneous Metals 1.0% $ 101,670
Miscellaneous Concrete 1.0% $ 101,670
SUBTOTAL w/ ADDERS $ 14,234,000
Escalation (5%/yr for 3 yrs to 2028 mid-point construction) 5.0% $ 2,135,100 TOTAL w/ Escalation $ 16,000,000
Estimating Contingency 30%
$ 4,800,000
Subtotal $ 20,800,000
Construction bonds, insurance, GC & fee 35%
$ 7,280,000
TOTAL $ 28,100,000
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TREATMENT PLANT & DISCHARGE UNIT Quantity Unit Cost Subtotal Unit Cost Subtotal Total Pre-Engineered Building SF 3,700 100 $ 370,000 $ - $ 370,000 Concrete Slab CY 552 900 $ 496,800 $ - $ 496,800
Total Buildings (Lab, admin, storage, etc.) $ 866,800 $ - $ 867,000 Phase 1 Influent Pump Station MGD 0.25 801,500 $ 201,000 $ - $ 201,000 Total Influent Pumping Station $ 201,000 $ - $ 201,000
Earthwork CY 990 35 $ 34,650 $ - $ 34,650
Concrete Liner SF 6,664 25 $ 166,600 $ - $ 166,600
Total Influent EQ Storage $ 201,250 $ - $ 202,000
Screen Equipment EA 1 120,000 $ 120,000 $ - $ 120,000
Concrete Slab CY 1.70 900 $ 1,530 $ - $ 1,530
Concrete Wall CY 4.96 1,500 $ 7,440 $ - $ 7,440
Earthwork CY 18.58 100 $ 1,858 $ - $ 1,858
Total Headworks $ 130,828 $ - $ 131,000
Channel MGD 0.25 152,000 $ 38,000 $ - $ 38,000
Fiberglass grating SF 9.12 85 $ 1,000 $ - $ 1,000
Total Grit Removal $ 39,000 $ - $ 39,000
MBR Equipment EA 1 3,950,000 $ 3,950,000 10% $ 395,000 $ 4,345,000 Concrete Slab CY 130 900 $ 117,000 $ - $ 117,000
Earthwork CY 277 100 $ 27,700 $ - $ 27,700
Building/Awning SF 3,500 50 $ 175,000 $ - $ 175,000
Total MBR Treatment $ 4,269,700 $ 395,000 $ 4,665,000
Chemical Feed System (tanks, pumps, pipes, etc.) LS 1 251,000 $ 251,000 $ - $ 251,000 Concrete Slab CY 9.35 900 $ 8,500 $ - $ 8,500
Concrete Wall CY 11.50 1,500 $ 17,300 $ - $ 17,300
Earthwork CY 412 100 $ 41,200 $ - $ 41,200
Total Chlorine Disinfection $ 318,000 $ - $ 318,000
Dechlorination Feed System (tanks, pumps, pipes, etc.) LS 1 206,000 $ 206,000 $ - $ 206,000 Total Dechlorination $ 206,000 $ - $ 206,000
Onsite Water System LS 1 30,000 $ 30,000 $ - $ 30,000
Total Onsite Water/Pumping $ 30,000 $ - $ 30,000
Solids Storage/Thickening LS 1 567,000 $ 567,000 $ - $ 567,000 Solids Drying Beds LS 1 300,000 $ 300,000 $ - $ 300,000 Solids Pumping Station MGD 0.25 1,484,000 $ 371,000 $ - $ 371,000 Total Solids Handling $ 1,238,000 $ - $ 1,238,000
Effluent Pump Station MGD 0.25 801,500 $ 201,000 $ - $ 201,000 MBR & Surface Water
Discharge Materials Installation
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TREATMENT PLANT & DISCHARGE UNIT Quantity Unit Cost Subtotal Unit Cost Subtotal Total MBR & Surface Water
Discharge Materials Installation
Discharge Piping FT 425 800 $ 340,000 $ - $ 340,000
Misc. Equipment (flow meter, sampling points, etc.) EA 2 50,000 $ 100,000 $ - $ 100,000 Total Surface Water Discharge $ 641,000 $ - $ 641,000
SUBTOTAL $ 8,141,578 $ 395,000 $ 8,537,000
Site Piping 10.0% $ 853,700
Site Electrical 10.0% $ 853,700
Instrumentation & Controls 8.0% $ 682,960
Site Work 10.0% $ 853,700
Miscellaneous Metals 1.0% $ 85,370
Miscellaneous Concrete 1.0% $ 85,370
SUBTOTAL w/ ADDERS $ 11,952,000
Escalation (5%/yr for 3 yrs to 2028 mid-point construction) 5.0% $ 1,792,800 TOTAL w/ Escalation $ 14,000,000
Estimating Contingency 30%
$ 4,200,000
Subtotal $ 18,200,000
Construction bonds, insurance, GC & fee 35%
$ 6,370,000
TOTAL $ 24,600,000
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Technical Memorandum
hdrinc.com
2365 Iron Point Road, Suite 300, Folsom, CA 95630-8709
T: (916) 817-4700 F: (916) 817-4747 D-1
Appendix D – Special Town Councial Meeting
Presentation Slides (August 14, 2025)
296
Special Town Council Meeting
August 14, 2025
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Ad Hoc Committee Recommendation
Alternative 1: Hybrid Gravity/Septic Tank Effluent Pump (STEP) collection system, aerated lagoon treatment, and land discharge to percolation/evaporation pond(s)
• Serves Downtown where growth has lagged
• Optimizes operational costs and rate payer burden
• Serves project mission to be fundable (affordable),
permittable, and scalable to meet Paradise’s needs
today and into the future
• Funding secured and probable = $84.8M
• Phase 1 estimated at $114M
• Town Council has options to consider redirecting
funds to reach a constructable project now
Mt Shasta WWTP
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Hybrid Gravity/STEP Sewer Concept
• Gravity trunk mains along Skyway, Clark, Pearson at full buildout with lowelevation areas/properties connected via on-site STEP systems o Most compatible solution for Paradise
o STEP system on individual properties in low elevation zones o Owners retrofit existing septic tanks, if in good condition o Replaces small grinder pump stations with regions connected via STEP • Main trunk lines installed at shallower depth than original gravity design • A phase 1 project (see figure next slide) prioritizing downtown may not require any central lift stations
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Conceptual Phase 1 Service Area
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Collection System Design Criteria for Gravity
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Collection System Design Criteria for Hybrid — Scenario A 302
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Collection System Design Criteria for Hybrid — Scenario B 303
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Collection System Design Criteria for Hybrid — Scenario C 304
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Aerated Treatment Lagoon/Ponds
• Most cost effective (Capital and O&M)
• Simple operation – less operator experience required
• Less sensitive to smaller/inconsistent flows
• Largest footprint
• Facility sizing depends more on hydraulics (amount of water inflow) than solids/carbon content, and would not change significantly between STEP and gravity collection system • Expand or repurpose ponds to scale up
• Could produce water for agricultural reuse with disinfection City of Biggs
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Aerated Treatment Lagoon/Ponds
Total area = 17 acres
(including discharge)
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Land Discharge – Percolation/Evaporation Pond
• Permit renewal every 10 years
• Expect to need to meet low total nitrogen
limits (<10 mg/L)
• Typical permit requirements include quarterly
groundwater monitoring
• Preliminary estimate of 5 acres needed for
Rio Alto Water District 0.1 MGD system
City of Biggs 307
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Public Input
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Community Input – Richard Harriman
• Public interest attorney in Butte County
• Suggestion to partner with property developers for project financing (California Infrastructure & Economic Development Loans – IBank about 4% interest)
• Consider updates to the General Plan to include requirements for development financing of sewer service
• Ad Hoc Committee Response: The Town will take the Sewer Project into consideration in updates to the General Plan. The Town plans to use state and federal grant funding for the capital costs of the Phase 1 project. 309
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Community Input – Blaine Stone
• Suggestions for secondary treatment in modular reactors that can be prefabricated and delivered to site
• Modular treatment system can replace treatment lagoons • Ad Hoc Committee Response: Modular secondary treatment systems were considered in the treatment facility alternatives analysis evaluation. 310
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Community Input – Tony Brandi
• Discussed potential land availability for treatment facilities on Clark Rd. • The available site has been improved with excavation and is currently being used as a temporary dirt processing facility
• Ad Hoc Committee Response: potential treatment plant locations will be identified in the Subsequent Programmatic EIR and available for public comment.
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Community & Regulatory Input –
Melissa Schuster & Matt Ball
• Representatives from Butte County Mosquito & Vector Control District • Ponds with rip rap siding are becoming more difficult to treat for mosquitos as larvicide products are becoming limited
• Ponds can be constructed to limit mosquito growth – other agencies have successfully designed facilities that are easy to mitigate • Daily fines could be issued in extreme instances if mosquitos are not properly managed
• Butte County Mosquito & Vector Control District wants to partner with the Town to ensure the pond design discourages mosquito growth • Ad Hoc Committee Response: treatment and disposal ponds will be designed with mosquito control in mind and the Town will continue to engage with the Butte County Mosquito & Vector Control District through project design.
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Community Input – Dave Anderson
• Dave is a general engineering contractor and has experience installing sewer main pipelines, lift stations, and STEP systems
• Agrees that gravity is the ideal solution, but suggests STEP for lower cost and easier installation
• Suggests continuing to look at STEP design as a potential bid-alternate for construction due to potential cost savings from pipe depth, diameter, and installation type
• Suggested locating the sewer pipeline under the sidewalk to avoid PID and PG&E utilities in the roadway
• Ad Hoc Committee Response: The Town will continue to examine ways to optimize project implementation cost and is utilizing STEP in low elevation areas to achieve this goal.
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Response to Public Comments
• Project cost and financing
oProject cost per parcel served – Town objective for initial costs entirely funded with grants
oOperational costs and rate payer burden – Hybrid collection and simple lagoon treatment with land discharge is the
lowest operational cost alternative; the Town Council has committed to subsidize operational costs for the first 5 years oFormation of a special district – Not conducive to stimulating growth in service area
oCost escalation – Construction cost estimates were
escalated at 5% per year to 2028, the estimated midpoint of construction
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Response to Public Comments
• Construction duration 2027-2029
oSubsequent EIR – 6-12 months
oRight-of-way and property acquisition – 12-18 months
oDesign for collection system and treatment facility – approx. 2 years once design services have been procured
• Disruption to business during construction
oThe Town will work with the contractor and local businesses to minimize disruptions during construction, potentially including night work
oAll collection system alternatives will likely require open trench construction methods
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Response to Public Comments
• O&M burden of large pump stations vs. small STEP pumps oHybrid STEP/gravity collection system minimizes the
number of central pump stations, and the initial project may not have any central pump stations
oO&M concerns of STEP is due to more (smaller) pumps to maintain rather than fewer (larger) pumps
• Other communities with STEP systems have been successful, including some within Paradise
oOwners report successes with full STEP implementation in smaller communities (<100 connections) and newer
installations, but increased operational challenges with more connections and older systems
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Response to Public Comments
• Treatment plant location and selection process/timeline oTreatment location selection and land acquisition in 2026 oLocation alternatives will be part of the Subsequent
Programmatic EIR with opportunities for public review and comment
oCDBG-DR funding prevents property purchase before
completion of EIR or NEPA process
• Purple Pipe can be laid in the same trench as sewer lines oCA Code of Regulations requires minimum separation
between sewer and reuse or potable water (minimum 1-ft
vertical and 10-ft horizontal)
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Response to Public Comments
• Directional boring of sewer lines will save time and money oPID experience validates that directional boring in Paradise is not necessarily faster or less expensive than open-trench construction, especially at required depths
oDirectional boring is not practical for most of Paradise due to rocky ground conditions
• Cost of treatment for septic effluent only vs. typical municipal wastewater
oSeptic effluent only decreases solids but does not significantly reduce soluble organics or nitrogen
oTreatment facility sizing is driven by water flow not solids content oPrimary clarification is typically not needed for small systems 318 TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Response to Public Comments
• Pressure reduction for a fully built out low-pressure/STEP system
oPressure reducing valves are not typically recommended for wastewater
oRisks of failure are increased and include sewer spills or backup into homes
oMore moving parts = more points of failure
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Response to Public Comments
• Feasibility of a STEG system with septic effluent only into a gravity collection system to reduce need for minimum velocities in collection system pipes
oIn Paradise’s topography, pipe depth in a fully gravity sewer would be driven by the need to capture low elevation users, not by minimum velocities
oReducing solids in gravity pipes would not reduce pipe sizes oSTEP/STEG requires equipment be maintained at every
parcel, increasing O&M cost
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Project Cost & Funding
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Phase 1 Capital Cost Estimate
Total Project Cost Estimate Range for Alternative 1: Hybrid gravity/STEP collection system, aerated lagoon/pond treatment, and land discharge via percolation/evaporation ponds Project Cost Components Low Estimate High Estimate
Engineering Design & Preconstruction $ 9,100,000 $ 14,000,000 Town, OA (including Environmental) & Legal $ 3,000,000 $ 4,500,000 Real Estate Acquisition & Professional Services $ 4,400,000 $ 5,600,000 Environmental Permit / Agency Costs $ 50,000 $ 100,000
Environmental Mitigation $ 100,000 $ 500,000
Collection System Construction $ 44,000,000 $ 51,000,000 Wastewater Treatment & Discharge Construction $ 16,500,000 $ 19,300,000 Engineering Services During Construction $ 1,800,000 $ 4,600,000 Construction Management & Inspection $ 3,600,000 $ 5,600,000 Town Cost & Contingency $ 6,600,000 $ 8,100,000
Estimated Total Project Cost $ 90,000,000 $ 114,000,000 Notes: Costs are escalated to midpoint of construction in 2028 for system sized to 0.1 mgd buildout.

Range of estimate follows Association for the Advancement of Cost Engineering (AACE) guidelines for Class 5 cost estimate (-50% to +100%) – conceptual level estimate 322 TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Phase 1 Capital Cost Estimate
Project Cost
Components
Low
Estimate
High
Estimate Basis of Estimate
Engineering Design &
Preconstruction $9,100,000 $14,000,000 15% to 20% of construction value, based on industry metrics
Town, OA (including
Environmental) & Legal $3,000,000 $4,500,000 Estimate to complete through design (+/- 20%) Real Estate Acquisition &
Professional Services $4,400,000 $ 5,600,000 Parcel-by-parcel estimate from HDR ROW estimating team
Environmental Permit /
Agency Costs $50,000 $100,000
Estimate from HDR environmental team based
on reduced project scope and anticipated
impacts
Environmental Mitigation $100,000 $500,000
Estimate from HDR environmental team based
on reduced project scope and anticipated
impacts
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Phase 1 Capital Cost Estimate
Project Cost
Components
Low
Estimate
High
Estimate Basis of Estimate
Collection System
Construction $44,000,000 $51,000,000
• Equipment, materials, installation, and labor
costs – based on independently reviewed
estimate from Mountain Cascade prepared for
Paradise (collection) and HDR estimating
standards for WWTP facilities
• Escalation = 5% per year through 2028
(based on current market conditions)
• Estimating contingency = 20% to 30% of
escalated total, per AACE Estimating
Guidelines
• Construction bonds, insurance, general
conditions, and profit = 25 to 35% of total
including contingency, based on industry
metrics
Wastewater Treatment &
Discharge Construction $16,500,000 $19,300,000
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Phase 1 Capital Cost Estimate
Project Cost
Components
Low
Estimate
High
Estimate Basis of Estimate
Engineering Services
During Construction $1,800,000 $4,600,000 3% to 7% of construction value, based on industry metrics
Construction Mgmt &
Inspection $3,600,000 $5,600,000 6% to 8% of construction value, based on industry metrics
Town Contingency $6,600,000 $8,100,000 10% of construction phase costs (construction + ESDC + CM)
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Construction Cost Estimates
• Hybrid Gravity/STEP Collection System includes:
• Ground-up estimate using unit costs developed by a contractor for this project in Paradise, considering local geology
• PVC gravity mains and manholes for gravity zones
• PVC pressure force-mains for STEP zones
• Service laterals from main to property line for all parcels in service area • Service laterals from property line to structure for all properties in the service area with existing structures
• New STEP tank/pump system and power service for all existing structures in STEP zones
• Assumes open trench construction for all piping
• Pavement restoration
• Potholing & utility verification
• Traffic control during construction
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Construction Cost Estimate
• Aerated Ponds Wastewater Treatment & Disposal facilities include:
• Onsite buildings and lab
• Influent pumping
• Headworks
• Clay-lined ponds with aerators
• Nitrification/denitrification reactor
• Onsite water service
• Solids thickening, pumping, and drying beds
• Electrical and I&C
• Site work and misc. piping, metals, and concrete
• Effluent discharge pumping and ponds (unlined)
• Does not include aesthetic improvements (berms, wetland plants/habitat) • Does not include disinfection facilities – assumes discharge ponds are not publicly accessible
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Committed Town Rate Subsidy
• On August 8, 2023, Paradise Town Council conceptually approved a rate subsidy plan...
o Rate Study would establish potential average rates near $85.66/month (target 2% of MHI)
oO&M Financing Assistance would establish an up-front operating reserve of $1,200,000 and commit $526,000 annually for first ten years of utility’s operation
oTotal commitment estimated to be $6,460,000
oFunding sources: Paradise Recovery & Operations (PRO) Fund Project Reserves
Rate Subsidy will need to be reviewed in the lens of the revised project scale and project costs (part of larger rate setting requirements) 328
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Secured Funding
1) CDBG-DR APA-2 Design $30,000,000 (active for pre-construction) 2) CDBG-DR Town Allocation $35,000,000 (secured for construction) 3) EPA Community Grant $1,750,000 (pending)
Clean Water SRF Funding Opportunities
4) Clean Water SRF (Grant) $28,097,669 (pending)
5) Clean Water SRF (Grant) $TBD Future
Additional Funding Pursuits (Future Project Phases)
6) USACE 219 – Initial Request $2,000,000
7) USACE 219 – Remaining Butte County Allocation $48,000,000 Project Funding Secured & Probable
(pending)
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Project Funding and Estimated Costs
• For the purposes of establishing project direction, assume a project cost of $114M (high end)
• Safely the Town can state it has combined $84M available to complete the project.
• There are no plans for assessments or local contribution from Town residents for design or construction costs – all costs are to be covered by state and federal grant funding
• Funding shortfall $114 - $84M = $30M
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Funding Shortfall Options
• Wait for more grant funding opportunities
• Take loans to finance the project shortfall
o Repaid by owners
o Repaid by Town
• Review CDBG-DR Infrastructure Allocation priorities and reallocate road funds to the Sewer Project
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CDBG-DR Infrastructure
• Uses $200M allocation towards a diverse set
of projects including:
• Pentz Road Widening (Pearson to Skyway)
• Skyway Widening (Bille to Wagstaff)
• Traffic Signal at Skyway/Pentz
• Constructing Roe Road between Edgewood to
Clark Road
• Funding is administered by California
Department of Housing & Community
Development
• Ongoing partnership to ensure Paradise’s
needs in an evolving recovery are met to
maximum extent possible
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CDBG-DR Funds Reallocation
• Environmental scoping of Roe
Road Project, especially Phase
2, indicated little support for the
project to move forward when
considering neighborhood
impacts.
• Town BUILD/RAISE funding
application for $25M was
recently unsuccessful
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Roe Road 1 & 2 Phasing Concepts
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CDBG-DR Funds Reallocation
CDBG-DR Funds (Flexible)
• Suspend Roe Road Phase 2 (S Libby to Clark) -$52,000,000 • Supplement Roe Road Phase 1A (Edgewood to S Libby) +$3,000,000 • Fully Fund Oliver Curve Phase 1 (Skyway to Valley View) +$12,300,000 • Supplement Paradise Sewer Project Phase 1 +$36,700,000 Net Change $0
LTCAP Funds (Not Flexible)
• De-obligate Roe Road Phase 2 (S Libby to Clark) -$33,000,000 Net Change -$33,000,000
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CDBG-DR Funds Reallocation
**Alternative**
CDBG-DR Funds (Flexible)
• Abandon Current Scope/Limits of Roe Road Phases 1A/2 -$72,200,000 • Create new Scope/Limits of Roe Road Phases 1A/2 +$35,500,000 • Supplement Paradise Sewer Project Phase 1 +$36,700,000 Net Change $0
LTCAP Funds (Not Flexible)
• Maintain Roe Road Phase 2 (S Libby to Clark) *Pending Approval* $33,000,000 Net Change $33,000,000
*Pending Approval* Town would need to engage on potential scope changes to remove bike path and other amenities with goal to only construct a new two-lane roadway along the corridor (limits TBD) with $70.3M budget. 336 TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Project Funding and Estimated Costs
• For the purposes of establishing project direction, assume a project cost of $114M (high end)
• Safely the Town can state it has combined $84M available to complete the project.
• Advance concept of CDBG-DR Infrastructure Reallocation from Roe Road Phase 2 ($36.7M)
• Work with California Transportation Commission to retain $33M for re-tooled Roe Road project.
• Sewer Funding surplus $120.7M for $114M project
• Added contingency or budget available for additional parcels to 337 be served in Phase 1
TOWN OF PARADISE SEWER PROJECT | www.paradisesewer.com
Updated Project Funding Picture
Secured Funding
1) CDBG-DR APA-2 Design $30,000,000 (active for pre-construction) 2) CDBG-DR Town Allocation $35,000,000 (secured for construction) 3) EPA Community Grant $1,750,000 (pending)
Clean Water SRF Funding Opportunities
4) Clean Water SRF (Grant) $28,097,669 (pending)
5) Clean Water SRF (Grant) $TBD Future
Reallocated Funding
6) CDBG-DR Town Allocation $36,700,000 (pending)
Additional Funding Pursuits (Future Project Phases)
7) USACE 219 – Initial Request $2,000,000
8) USACE 219 – Remaining Allocation $48,000,000
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Project Forecast
August
• Public
feedback on
proposed
alternative
• Special Town
Council
Meeting –
August 14th, 6-
8 pm
September
• Begin
Subsequent
EIR
• Begin
procurement of
treatment
facility designer
• Resume
funding
application(s)
Fall 2025
• Resume
collection
design
• Begin
wastewater
treatment
facility siting
2026
• Continue
design of
collection &
treatment
facilities
• Complete
Subsequent
EIR
• Begin
Environmental
permitting
• Begin ROW
Acquisition
2027-2029
• Complete
design
• Begin and
complete
construction
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Project Approvals
• Town Council approval to proceed with design, environmental, ROW, and construction of the revised project description – 8/14/25 • CEQA – Subsequent EIR (see next slide)
• Town Council approval to award design contract for the treatment facility • Town Council approval to award/approve construction contracts for the treatment facility and for the collection system
• Proposition 218 Protest Process
• Required for setting sewer utility rates
• Town must notify affected property owners and conduct a public hearing, and property owners have opportunity to submit written protests 340
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Environmental Approach
• The Town is preparing a Subsequent Programmatic EIR
o Incorporating relevant elements of prior EIR by reference o Focusing analysis on incremental changes to the analysis • Input and comments received during prior CEQA process will be considered o Input received during regional sewer project process requested consideration of a local option
• In addition to the “No Project” alternative, the Town is looking at several locations for the proposed WWTP
o Detailed analysis will be included for each site
• Project website will be kept up to date
• There will be an opportunity for public input after public draft EIR is released for a 45- day public review period
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Projected Environmental Forecast
Fall/Winter
2025/2026
• Completion of
technical field
studies
• Update tribal
coordination
• Development of
Subsequent PEIR
Spring 2026
• Regulatory agency
coordination/
consultation
• Circulate
Subsequent PEIR
for public review
• Public Review
Period + Meetings
Summer 2026
• Finalize
Subsequent PEIR
and MMRP
• NEPA Clearance
Summer/Fall
2026
• Certify CEQA
Document
• Permitting
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Why is this time different?
• We have the most experienced and capable team to deliver the project with the insight and knowledge from professionals who have built these facilities before. • We know more now about what it takes to build a new sewer utility in Paradise than any preceding approach to this project.
• For the first time in the last 30+ years, the Paradise Sewer Project has a path to construction with funding secured, probable and available. • Town Council has already committed to a rate subsidy as the Sewer is an investment into our recovery.
• Project recommended is the most scalable and affordable to design and construct now and operate into the future
.
• Town has full support of the Regional Board for a local option. • Further delays will reduce our ability to use critical CDBG-DR funds on the project with no replacement source in sight.
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Next Steps
• Action Requested

1. Consider adopting Resolution No. 2025-___ “A Resolution of the Town Council of the Town of Paradise to Concur with the Paradise Sewer Project Ad Hoc Committee’s Recommendation to Direct a Revised Project Description to Include Hybrid Gravity/Low Pressure Collection System, Aerated Lagoon Wastewater Treatment, and Percolation/Evaporation Pond Effluent Discharge” (Alternative 1); and,

2. Provide direction to staff to immediately commence and resume efforts to advance the project forward through environmental and design activities to the maximum and most efficient means feasible; and,

3. Provide direction to staff to bring back formal revisions to the Town’s CDBG-DR Infrastructure Action Plan which provides additional funds to the Paradise Sewer Project’s first phase, as well as coordinate with impacted funding agencies for action implementation. (ROLL CALL VOTE)
• Receive Public Comments
• 3-Minute Limit (standard Council meeting)
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Town of Paradise
Council Agenda Summary
Date: June 9, 2026
Agenda Item: 6(g)
ORIGINATED BY: Marc Mattox, Assistant Town Manager
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: 2025 Building Division Audit Corrective Action Plan (CAP) Quarterly Update

LONG TERM
RECOVERY PLAN:

Yes – Building Codes and Standards
COUNCIL ACTION REQUESTED:

1. Receive and file the first quarterly update to the 2025 Building Division Audit Corrective Action Plan, covering the period from adoption through May 30, 2026; Background:

In August 2025, in response to ongoing community concerns about permitting consistency, inspection reliability, and accountability during the post-Camp Fire rebuilding period, the Town of Paradise commissioned an independent operational audit of the Building Division. The audit found no illegal wrongdoing but identified areas warranting correction, including permit intake procedures, inspector training, internal oversight, and documentation practices.

The 2025 Building Division Audit Corrective Action Plan was prepared by Assistant Town Manager Marc Mattox and adopted by the Town Council on February 10, 2026. The CAP translates audit findings, along with additional improvement opportunities identified through internal review, into specific, trackable corrective actions organized across five functional areas.

The CAP was designed as a living document to be updated quarterly with implementation occurring in four phases spanning November 2025 through February 2027.

This is the first quarterly update to the adopted CAP. It covers implementation activity from adoption through May 30, 2026. It does not replace the original CAP — it updates it. The full adopted CAP and all related materials are publicly available at https://www.townofparadise.com/building/page/building-code-complaint-corrective-action-plan.

Analysis:

Significant progress has been made across all four active implementation phases during this reporting period. Phase 1 (Stabilization) is fully complete. Phases 2, 3, and 4 are actively underway. Below is a quick list of high-level updates reflected in the attached Quarterly Update:
 Adopted Building Code Complaint Ordinance No. 655 (May 12, 2026), establishing the Town's first formal, codified system for processing, reviewing, and managing postconstruction Building Code complaints, including a strike system, 10-year lookback, independent review process, and appeal rights. This ordinance was passed unanimously by the Town Council.
 Engaged Interwest Consulting Group as the Town's Independent Reviewer and 345
independent quality assurance advisor, providing an objective, arms-length evaluation of CAP implementation.
 Launched the Building Code Complaint & CAP Community Intake Form (May 26, 2026), serving as the exclusive entry point for both formal Building Code complaints under Ordinance No. 655 and general Building Division feedback. Residents may complete the Complaint Form online at https://www.surveymonkey.com/r/Y223MDR.  Seated the CAP Ad Hoc Advisory Committee, with membership spanning municipal leadership, technical professionals, contractors, an engineer, and a community member; the Committee's charge has been expanded to include oversight of the new Building Code complaint process.
 Completed in-person ethics and professional conduct training for all available staff (March 11–12, 2026), satisfying AB 1825, SB 1343, AB 1661, and AB 1234 requirements through an interactive format consistent with the audit's recommendations.  Completed and adopted uniform inspection checklists and photo documentation requirements across all inspection types: residential stick-built, manufactured residential, and all over-the-counter categories which are all now in active operational use.  Completed the Field Training Officer (FTO) program through three progressive phases, including off-site ride-alongs in Rocklin exposing inspectors to commercial and highcomplexity project types beyond Paradise's typical rebuild environment.  Completed the revised Permit Technician Manual, providing comprehensive step-by-step guidance on GovWell workflows, submittal requirements, plan review routing, fee calculations, and contractor verification.
 Published a suite of more than 25 public-facing informational documents, including the Community Resource Guide covering six external resolution pathways for concerns outside Town authority. These resources may be found at the Building Resiliency Center and on their website at: https://www.townofparadise.com/building  Established and launched the ombudsman function through the Assistant Town Manager's office, with dedicated walk-in office hours every Wednesday and Thursday from 11:00 a.m. to 1:00 p.m. at Town Hall – appointments can be made during normal business hours as well. The ombudsman is intended to serve as a liaison for the public to support connecting residents to resources and processes which may help resolve concerns raised.
 Launched monthly CDD Activity Summary public reporting available here:
https://www.townofparadise.com/building/page/building-activity.

Financial Impact:

Implementation of CAP corrective actions during this reporting period has been supported through previously authorized consulting and training services, including Bureau Veritas embedded trainer and FTO support, BPR Consulting Group interim advisory services, and the new engagement of Interwest Consulting Group for independent quality assurance and independent reviewer functions.

As implementation continues through Phases 2–4, ongoing costs associated with quality assurance sampling, independent review of Building Code complaints, ombudsman support, and public-facing reporting functions will be required. Staff will return to Council as necessary with budget adjustment requests to sustain these functions through the corrective action period. No additional appropriations are requested at this time.

Attachments:

CAP Quarterly Update including Ordinance 655 and Building Code Complaint Form 346
2025 Building Division Audit
Corrective Action Plan
Quarterly Update

RESTORING COMMUNITY CONFIDENCE THROUGH IMPLEMENTATION
FOR TOWN COUNCIL REVIEW JUNE 9, 2026
Prepared by:

Marc Mattox
Assistant Town Manager
347
2025 Building Division Audit Corrective Action Plan
Quarterly Update June 9, 2026

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Paradise City CouncilJune 9, 2026

Paradise City Council
June 9, 2026