Paradise City Council
October 13, 2026

Town of Paradise
Town Council Meeting Agenda
6:00 PM – October 13, 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. Quarterly investment report presentation by Meeder Investment's Jim McCourt.
1f. p6 Camp Fire Recovery Updates - Written reports are included in the agenda packet.

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 updates. 1g. Community Development Director Tony Lindsey to provide an update on Fire Prevention.
1h. p21 Paradise Sewer Project Update by Assistant Town Manager 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. p25 Approve the minutes of the September 8, 2026 Special and Regular Town Council meetings. (Melanie Elvis/Town Clerk)
2b. p32 Approve September 2026 Cash Disbursements in the amount of $9,753,369.44. (Aimee Beleu/Finance Director)
2c. p42 1. Authorize the Town to utilize (piggyback) Butte County Managed Procurement Contract MPC0084 with Global Office, Inc. for the lease, service, and maintenance of multifunction printers and related equipment; and, 2. Authorize the Town Manager to execute the necessary lease, maintenance, and related agreement documents for a 60-month term, subject to final review and approval as to form by the Town Attorney; or, 3.

Provide alternate direction to Town staff. (Aimee Beleu/Finance Director) 2d. p139 Adopt Resolution No. 2026-___ “A Resolution of the Town Council of the Town of Paradise Rescinding Resolution No. 01-14 and Replacing it with Resolution No. 2026-___ Relating to the Settlement Authority for Liability Claims and Establishment of a Claims Committee. (Jennifer Macarthy/Town Manager)
2e. p141 Adopt Resolution No. 2026-___, “A Resolution of the Town Council of the Town of Paradise Superseding Resolution No. 2022-79 Authorizing and Approving Execution of a Grant Agreement to Receive an Allocation of Funding from the 2018 CDBG-DR Infrastructure Program and any Forthcoming Amendments, Thereto” to allow for an additional $300,000 in 2 3 grant funding from HCD through the CDBG-DR program to be allocated to design of the Paradise Sewer Project. (Marc Mattox/Assistant Town Manager)
2f. p145 Consider adopting Resolution No. 2026-___, “ A Resolution of the Town Council of Town of Paradise accepting the work performed under the On-System Roadway Rehabilitation – Clark Road 2025, Contract 7303.4 CON, performed by Baldwin Contracting Company, Inc. dba Knife River Construction”. (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.

5. PUBLIC HEARINGS - None

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. p151 Consider adopting Resolution No. ____” A Resolution of the Town Council of the Town of Paradise Accepting the Town of Paradise Fiscal Year 2024/25 Annual Comprehensive Financial Report and Report on Federal Awards (Single Audit) for the Fiscal Year Ending June 30, 2025”. (ROLL CALL VOTE) (Aimee Beleu/Finance Director)
6b. p252 1. Consider authorizing the recruitment and hiring of one regular full time Housing Program Technician to support the Town’s Housing Division; and 2. Adopt Resolution No. 2026-___, “A Resolution of the Town Council of the Town of Paradise Approving Changes to the Job Description for Housing Program Technician”; and, 3. Adopt Resolution No. 2026-___, “A Resolution of the Town Council of the Town of Paradise Amending the Salary Pay Plan to Include Housing Program Technician for Fiscal Year 26-

27.” (ROLL CALL VOTE) (Colette Curtis/Recovery & Economic Development Director)
6c. p261 1. Review options presented by staff for aesthetic improvement in high visibility areas; and 2. Give direction to Staff to bring back specific programs and budget adjustments if necessary for Council approval and implementation; or 3. Give alternate direction to Staff. (Colette Curtis/Recovery & Economic Development Director)
6d. p264 Consider approving a supplemental budget allocation of $880,000 from the Long Range Facilities Fund for acquisition of the identified Corporation Yard property, including related escrow, title, closing, due diligence, and transaction costs. (ROLL CALL VOTE) (Marc Mattox/Assistant Town Manager)
3 6e. p267 1. Consider waiving the entire first reading of Town Ordinance No. ___ and read by title only; and, 2. Introduce and conduct the first reading of Ordinance No. ___ “An Ordinance of the Town Council of the Town of Paradise Amending Section 15.02.065 of the Paradise Municipal Code to Revise the Building Code Complaint Procedure and Authorize Extraordinary Life, Health, Safety, or Cumulative Project Impact Determinations.” (ROLL CALL VOTE) (Scott E. Huber/Town Attorney) 6f. p274 1. Consider the following actions related to Town Council Committees:

Option 1: Formalize the establishment of the Town Council Standing Committees and Ad Hoc Committees by taking the following actions including:
a. Formally designate Ad Hoc Committee members and Standing Committee members
b. Designate a Chair to each committee
c. Determine how items are placed on the agenda
d. Designate the date, time, and location for all Standing Committees e. Direct staff to develop minutes from the Standing Committee meetings
f. Provide direction on preferred reporting methods, i.e. staff or Council reports, written or verbal.
g. Direct staff to stream Standing Committee meetings via the Town’s YouTube channel.

Option 2: Disband the Town Council Standing Committees, elevating every topic and discussion to the full Council level; and,

2. Formalize the committee formation workflow process by directing staff to use Exhibit C as Council’s Committee Formation Workflow template; OR

3. Provide alterative direction to staff. (ROLL CALL VOTE) (Melanie Elvis/Town Clerk)

7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Council initiated agenda items
7b. p287 Council Members’ written reports on standing, external and ad hoc committee representation.
7c. Future Agenda Items

8. STAFF COMMUNICATION
8a. Town Manager Report
4 5

9. CLOSED SESSION - None

10. ADJOURNMENT

5 Town of Paradise
Council Agenda Summary
Date: October 13, 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.

In this report, red text denotes information that has changed from the last monthly update.

Analysis:

ECONOMC DEVELOPMENT
Community Development Block Grant – Disaster Recovery (CDBG DR) Workforce Development  Compliance Consultant is now on board and advising Town and Partners.  Town Staff and Partners completed the first trial program with Butte College in June and are working to refine intake and grant reporting requirements for a larger program launch.
 Town Staff and partners are expanding programs and working on public outreach to increase participation and number of training programs offered.  Town staff have been working with partners and the California Department of Housing and Community Development (HCD) to adapt the program to increase the number of participants and increase the number of training programs and services offered.  Four individuals graduated from the first training cohort for the Valley Contractor’s Workforce Foundation. Additional cohorts will be completing their training sessions throughout the fall and winter of 2026.

Economic Development Committee
 The Economic Development Committee has been formed at the direction of Council.  The Committee has given input on the Economic Development Strategy that is being drafted as part of the Long Term Community Recovery Plan. 6  A business outreach plan is being developed which will include business outreach efforts every other month starting in October 2026.
 Business Walks are being held on October 7th and 14th 2026 to provide resource to businesses and get input on future needs.

Insurance Advocacy Committee
 The Insurance Advocacy Committee has been formed at the direction of Council.  Current areas of focus:
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 Urban Design Associates (UDA) to conduct the update and draft the plan.
o Economic Development Policies and programs are being developed with the public finance consultant Wildan.
o A draft Long Term Recovery Plan Update will be presented to Council for review at the November 2026 meeting.
 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 Federal Emergency Management Agency (FEMA) funded grant, which are located at Town Hall for pickup.  Public Services
o Staff is working with the California Department of Housing and Community Development (HCD) on the application for groups to become subrecipients to do mitigation work in Paradise.
o Applications are expected to be released in winter 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 is being gathered in conjunction with other planning events through the fall and winter.

FEMA Hazard Mitigation Grant Project Updates
Category 4 Tree Removal Program
7  Project implementation is complete.

Emergency Warning System
 All 21 Towers are standing and operational.
 In-Home Safe Units are now available for pickup at Town Hall for Paradise residents.

Approximately 440 units have been distributed to the public.  Safe Units have been updated to broadcast emergency alerts to nearby units. As the Town increases the number of units being used, the network will become stronger and more reliable.
 Full grant closeout and documentation have been provided to CalOES as of March 2026.
 Town staff worked with our contractor to identify a software update issue that caused some of the Safe Units to function incorrectly. This has now been resolved.

Residential Ignition Resistant Retrofit Program
 Program is now complete. Closeout will begin on project with CalOES and FEMA in Fall 2026.
 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 selected contractor and implementing the project with completion at the end of September 2026.

Defensible Space Code Enforcement
 Funding for the current grant will expire at the end of September 2026. In May a notice of intent was submitted to CalOES to request an additional three years of funding for this program. The NOI was accepted and a full application was submitted in September 2025. As of March 2026, CalOES has submitted the project to FEMA for consideration.

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.

FIRE PREVENTION
 The Town’s Defensible Space and Hazardous Fuel Management Program continues to demonstrate measurable year-over-year progress, reaching a 92% compliance rate across all 11,254 parcels inspected. This represents a threepercentage-point improvement over the 89% compliance rate recorded during the same period in 2025 and is the program's highest compliance rate to date.  As of the current season, 10,558 parcels are confirmed compliant, while 142 parcels remain non-compliant after receiving a Notice of Violation. An additional 8 554 parcels have progressed to the citation enforcement phase, with a total of 1,644 citations issued. These results reflect strong community participation and continued progress toward reducing hazardous vegetation and wildfire risk throughout Paradise.
 The Town also continues to promote transparency and voluntary compliance through its publicly accessible Vegetation Management Map Vegetation Management Map | Paradise, CA, which allows residents, property owners, and real estate professionals to monitor parcel compliance status throughout the season.
 While overall parcel compliance has reached a record level, citation compliance remains a primary area of focus for the remainder of the 2026 season. Staff will continue targeted outreach, follow-up inspections, and progressive enforcement efforts to address outstanding violations and move cited properties toward compliance. Overall, the 2026 results show continued improvement in communitywide defensible space compliance and wildfire risk reduction, while identifying a defined group of properties that require additional attention and enforcement.

Advocacy
 Federal (The Ferguson Group - TFG – Federal Lobbyist) o Chris Griffin will be visiting the Town in person on October 6, 2026, to meet with staff regarding advocacy needs.
o TFG has provided a memo on the Office of Management and Budget (OMB) Uniform Guidance Overhaul. This change in guidance at the federal level could have major impacts to the Town’s recovery funding. The memo is attached to this summary. TFG continues to work with the Town on strategy for this potential change.
o Town staff have worked closely with the Ferguson Group to pursue Congressional Directed Spending opportunities through the offices of Senator Padilla and Senator Schiff. The Town has been successful in these efforts previously. o Town staff continue to work with the Feguson Group to secure congressional funding allocation for the Town’s sewer project, originally made possible through the late Congressman LaMalfa’s office. This multi-year effort has focused on obtaining authorization from the US Army Corps of Engineers for an increment of work necessary to access appropriated funds.
 State (Broad and Gusman – State Lobbyist)
o Town staff are working with Broad and Gusman to engage state legislators and leadership at the Contractor’s State License Board (CSLB) on legislative issues related to California’s owner-builder laws.
o Town Staff and Broad and Gusman met with CSLB to discuss legislative prospects on September 28th.
o Broad and Gusman is also assisting the Town in developing and advancing proposed reforms to owner-builder statuses for consideration during the next state legislative session.

Financial Impact:

None.
9 Memo
TO: Town of Paradise
DATE: October 1, 2026
Update on OMB “Uniform Guidance”
Overhaul
This memo provides a general update on the status of OMB’s rulemaking to overhaul the federal government’s “Uniform Guidance” – the framework which governs how nearly all federal funding and financial assistance programs are administered. This overhaul has significant implications for local governments including the Town of Paradise.

General Overview
The federal government's proposed rewrite of its core grant rules is on hold until at least December 11, 2026, and the current rules remain in effect. On May 29, 2026, the Office of Management and Budget (OMB) published a proposed rule to overhaul 2 CFR Part 200, commonly called the "Uniform Guidance." These are the rules that govern how nearly every federal grant and cooperative agreement is applied for, spent, tracked, audited, and executed. They largely apply whether an agency receives funds directly from the federal government or through a state or other pass-through entity.

The National Association of Counties describes the proposal as the largest revision to these rules since they were first issued in 2013. OMB states that the changes have three goals: improving transparency, accountability, and oversight of federal spending; formally converting the rules from "guidance" into binding regulation; and reducing burden on grant recipients. The proposal drew an exceptionally large response, with nearly 500,000 public comments submitted before the comment period closed on July 13.

OMB had planned for the new rule to take effect October 1, 2026. However, the short-term funding bill signed into law on September 2 (the Continuing Appropriations and Extensions Act, 2027) bars OMB from issuing or finalizing this rule, or a substantially similar one, through December 11. Congress would need to act again to extend that delay. In essence, this gives Congress more time to reckon with what has been an extremely controversial regulatory reform effort.

Key Proposed Changes and What They Could Mean
Alignment with administration priorities and political review (§§ 200.202, 200.205). Discretionary grant programs would need to align with the policies and priorities of the sitting administration, including Executive Orders. Before a competitive award is issued, a senior political appointee at the funding agency would review the selection. Grant funds also could not be used for lobbying, issue advocacy unrelated to the grant, or dues to organizations whose main purpose is lobbying or advocacy (§§ 200.450, 200.454). What this means: Award 10 Update on OMB “Uniform Guidance” Overhaul 2
decisions for competitive grants may become less predictable and could shift when administrations or priorities change. Activities or affiliations that could be seen as advocacy may receive closer scrutiny.

Broader authority to cancel or pause grants (§ 200.340). Agencies could terminate an active discretionary grant if it no longer advances agency priorities or the national interest, with limited appeal rights. Agencies could also suspend work and spending during a review. Costs incurred after termination generally would not be reimbursed. Formula grants, block grants, and disaster recovery grants with statutory entitlements would be exempt. What this means: Multi-year projects funded by competitive grants carry more risk of mid-stream cancellation, even when the recipient is meeting its goals. Careful, ongoing documentation of completed work would be important for recovering costs.

New paperwork and payment steps (§§ 200.305, 200.208, 200.322). Every payment request would need a written justification tying it to specific grant work, and payments would be screened through Treasury's "Do Not Pay" system, including payments passed through states. Recipients and subrecipients would need to use E-Verify for grant-related work, and "Buy America"-style domestic sourcing preferences would extend beyond infrastructure to all awards. Agencies could also add or remove special award conditions at any point based on risk factors, within 15 days of a determination. What this means: Grant administration would take more staff time, and reimbursements could slow. The National League of Cities notes this burden would fall hardest on small, rural, and thinly staffed communities.

End of fixed-amount awards and limits on certain vendor contracts (§§ 200.201, 200.333, 200.320). Unless a statute specifically allows them, "fixed-amount" awards (a set dollar amount tied to milestones rather than tracked costs) would be eliminated, for both prime awards and subawards. Separately, recipients that hire engineers, consultants, or contractors on a cost-reimbursement basis would need to notify the agency and keep a written justification on file. What this means: Agencies that rely on fixed-amount structures would shift to tracking and documenting actual costs, which can affect cash flow and accounting workload. Existing consultant and contractor agreements may need review.

Greater responsibility for pass-through entities. Agencies that pass federal funds to others (for example, a county funding a nonprofit or a smaller district) would need to ensure subrecipients do not take actions that could "significantly damage the reputation" of the pass-through entity, the funding agency, or the federal government. If a subrecipient's conduct or public statements are deemed harmful, the federal agency could direct termination of the subaward or terminate the prime award itself. Subaward reporting to SAM.gov would also be strengthened. What this means: Pass-through entities may need to expand monitoring and revise subaward agreements, and could bear risk for conduct they do not control.

Event services on public property (§ 200.219). Federal fund recipients, including subrecipients, could not discriminate based on viewpoint or subject matter when providing services for events or meetings on property they control. According to NACo, this would apply even when the event itself is not federally funded. What this means: Facility-use policies for public buildings and venues may need legal review.

Records storage and foreign partnerships (§§ 200.336, 200.220). Recipients would be strongly encouraged, though not yet required, to store electronic grant records in the United States. Grant funds, including indirect costs, could not support collaborations with "covered foreign countries" or entities. What this means:

Agencies may want to confirm where cloud-hosted records physically reside and review any international partnerships or vendors.

Rules become binding regulation. The Uniform Guidance would be formally reclassified from guidance to regulation. Future OMB changes would then apply across all agencies on a single effective date, without each agency adopting them separately. What this means: Future rule changes could take effect faster and more uniformly, with less opportunity for agency-specific flexibility. 11 Update on OMB “Uniform Guidance” Overhaul 3
Potential Upsides
Several provisions could make federal grants easier to find and apply for, which local government organizations have generally welcomed. Notices of Funding Opportunity (NOFOs) would need to be written in plain language, include an executive summary of about 500 words, and remain open for at least 30 days.

Applications would generally run through Grants.gov, and agencies would be encouraged to use shorter "statements of interest" before requesting full proposals for highly competitive programs. Agencies would also be encouraged to make funding notices accessible to first-time applicants. For smaller communities without dedicated grant staff, these changes could lower the cost of competing for awards.

Other provisions offer a measure of stability or limit new requirements. Formula, block, and disaster recovery grants with statutory entitlements would be exempt from the new termination authority. The proposal would limit audit requirements to what federal statute authorizes, and OMB states it is not revising the indirect cost rate negotiation system in this rulemaking. Reclassifying the rules as regulation could also produce more consistency across agencies, since recipients would face one set of requirements on one effective date.

OMB's broader rationale is that stronger oversight helps ensure federal dollars are spent on the purposes Congress authorized and are not lost to waste or fraud. OMB argues, for example, that fixed-amount awards limit visibility into how funds are actually spent, and that its termination authority mirrors long-standing federal contracting practice. Supporters view these changes as overdue accountability measures. Many local government organizations agree with the goals of transparency and accountability but question whether the added steps would achieve them without imposing significant new costs on recipients.

Where Things Stand and Recommended Next Steps
The current funding law runs through December 11, 2026, and the delay on this rule expires on the same date.

Congress will need to pass full-year appropriations or another short-term bill by then, and it may or may not carry the delay forward. Meanwhile, OMB is reviewing public comments, and the final rule may look different from the proposal – however, the best indications we have seen show that the administration is intending to implement the existing proposed rule in full come December 11. Until a final rule takes effect, existing Uniform Guidance requirements remain the rules to follow.

The Town may want to use this window to prepare:
 Take inventory of federal awards. Identify which grants are competitive (discretionary) and which are formula or block grants, since the termination risk differs.  Strengthen/maintain documentation. Keep clear, current records of milestones, costs, and completed work on active awards.
 Review contracts and subawards. Flag fixed-amount awards and cost-reimbursement agreements with engineers, consultants, or other vendors that could need restructuring or justification.  Plan for cash flow and staffing. Estimate the effect of payment justifications, added screening, and a possible shift to cost reimbursement on staff time and reimbursement timing.  Check records and facility policies. Confirm where electronic grant records are hosted and review facility-use policies for public property.
 Stay engaged with the congressional delegation. Concrete examples of how the changes would affect local projects, budgets, and staff remain useful as Congress weighs whether to extend the delay.
12 Update on OMB “Uniform Guidance” Overhaul 4
TFG will continue to monitor this rulemaking and the appropriations process closely and will share updates as they develop. If you have any questions about the Uniform Guidance changes, do not hesitate to reach out to Chris Griffin with TFG at 202-975-8781 or [email protected]. 13 Town of Paradise
Council Agenda Summary
Date: October 13, 2026
Agenda Item: 1(f)
ORIGINATED BY: Nadia Alekseev, Housing Program Manager
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. In this report, red text signifies new information from the last report.

Analysis:

Paradise has restored 44.25% of its pre-disaster housing stock, with 5,793 habitable homes currently available. This total includes 1,720 surviving homes and 4,073 newly completed homes with Certificates of Occupancy (up 33 since last month), compared to 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 pre-fire housing units. An estimate from tax data shows 144 mobile homes in parks, or 5,937 housing units in Paradise.

Town of Paradise Owner-Occupied Rehabilitation/Reconstruction Program ($12.5 million + $1.1 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. The Town was awarded a new CalHome grant earlier this year, making an additional $1.1 million available for the owner-occupied rehab program. Applicants for this new funding need to be low-income and the current owner-occupant of the home. Funds can be used to make essential health and safety repairs, and the damage needing repair does not need to be fire related.
 74 homes completed since 2020
 4 homes in construction
 0 applications in process
14 Town of Paradise First-Time Homebuyer Program ($11 million+ $3.8 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). The Town was awarded a new CalHome grant earlier this year making an additional $3.8 million available for first-time homebuyers. These funds are only available to households making no more than 80% AMI, and are not limited to disaster-affected households.  123 households assisted since 2020
 19 applications in process
Community Development Block Grant Disaster Recovery (CDBG-DR) Multifamily Rental Housing Program ($84.7 million)
Affordable rental housing. Seven (7) projects were funded; a total of 292 units. The Town is required to conduct annual monitoring for 55 years following lease-up.  Community Housing Improvement Program (CHIP) project- scattered site (4 units) o Completed and Leased up in 2024. Annual monitoring was performed in September.  Eaglepointe- 5975 Maxwell Dr (43 units)
o Completed and Leased up in 2025. First annual monitoring was performed in September.
 Mayer Commons- 1561 Kay Ct (12 units)
o Completed and Leased up in June of 2026
 Northwind Senior- 6983 Pentz Rd (21 units)
o Competed and Leased up in Fall of 2025. First annual monitoring was performed in September.
 Cypress Family- 1633 Cypress Ln (70 units)
o Completed and Leased up in April of 2026
 Clark Rd- 6480 Clark Rd (72 units)
o Under construction, foundations are being poured and framing will be starting next.  Cypress Senior (phase II)- 1633 Cypress ln (70 units) o Under construction, foundations are being poured and framing has started on several buildings
Community Development Block Grant (CDBG) (2026 Annual Allocation=$54,430) CDBG entitlement grants are on a 5-year plan cycle called the Consolidated Plan, and this year is the 2nd year in the current plan. The Consolidated Annual Performance and Evaluation Report (CAPER) was submitted to HUD.

HOME Infill New Construction ($700,000)
Create affordable housing for first-time homebuyers. The grant award letter was finally received from The California Department of Housing and Community Development (HCD) in April of 2025.

Program guidelines are complete and were adopted by Council. Staff is continuing to work-out funding logistics with HCD. Guidelines were approved by HCD and Authority to Use Grant Funds was signed by HCD and received by Town in June. An RFQ for contractors was published in September and applications for buyers are now available.

Permanent Local Housing Allocation (PLHA) ($540,905)
Allocates matching funds to North Valley Housing Trust to administer for affordable housing projects. PLHA operates on a 5-year funding cycle similar to CDBG. The Notice of Funding Availability (NOFA) for the next cycle was released in July 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.
 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 15 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 Lane. There was a ground-breaking ceremony on Sept. 9 and the project has since passed it’s first inspections. The Town can assist a lowincome household to purchase the completed home with $100,000 in down-payment assistance through the first-time homebuyer program.

Financial Impact:

None.
16 1

TOWN OF PARADISE
Council Agenda Summary
Date: October 13, 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 July 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, grading and paving. Knife River Construction has made substantial progress on arterial roadways including night work along the Skyway corridor between Manchester Way and Bille Road, Upper Skyway between Wagstaff and Clark, Upper Clark between Wagstaff and Skyway in addition to Elliott Road between Skyway and Clark Road. Final work remains along these roadways including signal improvements, striping, and various drainage/grading and punchlist items.

Separately, the Town of Paradise has informally bid and awarding the Skyway Maintenance Project approved in the 2026/2027 Budget to Knife River Construction. This project will make interim repairs to the road condition along Skyway between Bille Road and Wagstaff Road in 17 2
early October 2026 while longer term initiatives such as roadway widening and undergrounding of utilities continue to progress in design and future construction.

The active construction map with current information can be found below and at www.paradiseworks.com
18 3
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
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 19 4
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.

State Water
Board Septic to
Sewer CWSRF
Paradise
Sewer Project
$27,000,000-
$75,000,000 TBD
Work to revise the project
application package is
resuming with new project
direction selected.

Active
Transportation
Project Cycle 8
Oliver Curve
Pathway $13,000,000 December 2026
Application has been submitted
for formal consideration.

Determinations of award are
expected late 2026.
20 1

TOWN OF PARADISE
Council Agenda Summary
Date: October 13, 2026
Agenda No. 1(h)
ORIGINATED BY: Marc Mattox, Assistant Town Manager, Public Works Director 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.

Subsurface investigations at potential wastewater treatment facility (WWTF) sites conducted in the spring of 2026 concluded that percolation ponds were not feasible for the Sewer Project.

Additional desktop geotechnical evaluations indicated that these conditions were likely to be representative of other potential sites in and around Paradise. As a result, the Town sought to revise the project description to replace the lagoon and pond concept with a membrane bioreactor (MBR) treatment facility and surface water discharge of treated effluent. In June 2026, the Town Council voted to concur with the Paradise Sewer Project Ad Hoc Committee's recommendation to approve that revised project description.
21 2
Below is a summary of the main accomplishments in the last month and forecast for key activities in the month ahead:

Main Accomplishments
Continued development of the Financial Analysis of the updated project description.

Ongoing development of the Subsequent Environmental Impact Report (EIR).

Continued preliminary design of the Collection System.

Continued preliminary design of the WWTF.

Ongoing evaluation of potential WWTF alternative sites.

Key Activities (One Month Look-Ahead)
Continue development of Financial Analysis of the updated project description.

Continue analysis of project impacts for the Subsequent EIR.

Ongoing preliminary design of Collection System.

Ongoing evaluation of potential WWTF alternative sites.

Ongoing preliminary design of the WWTF.

Topographic survey of potential WWTF sites.

Update funding applications to reflect the change in project scope.

Scheduling key community engagement opportunities/events To help community members understand how current project work relates to future decisions, costs, service areas, and construction, the following key questions and answers will be maintained and updated as the project advances. This information is also available at www.paradisesewer.com.

Paradise Sewer Project Key Questions and Updates
Description of Major
Milestone or Key Question Update or Answer
When is the next opportunity
for the public to learn more
about the project?
In addition to regular updates at the Paradise Town Council meetings, the Town is actively planning community engagement activities ahead of and as part of the environmental document review process. The November monthly report will include more details.

What sewer project is the
Town currently planning?
The Town is planning a local sewer system: a mix of gravity pipes, low-pressure pipes, and force main pipes to collect wastewater, a modern membrane wastewater treatment facility, and a permitted discharge of highly treated effluent water to surface water.

Why has the project approach
changed over time?
The Town has continued to test options as better cost, engineering, and site information became available. Sending wastewater to Chico was not financially feasible, and 2026 soil testing showed the 22 3
Description of Major
Milestone or Key Question Update or Answer
originally planned land-disposal ponds would not work reliably in or near Paradise.

What is happening this
month?
The project team is advancing the environmental review, preliminary design, financial analysis, funding strategy, and evaluation of possible treatment-facility sites. These steps are needed before the Town can finalize a project, complete final design, obtain permits, and move toward construction.

What does “environmental
review” mean?
It is the public process used to study potential effects on water, wildlife, traffic, neighborhoods, cultural resources, and other community concerns. The review will identify the expected impacts of the project and ways to avoid or reduce impacts before final project decisions are made. A draft of the Subsequent
Environmental Impact Report with these findings will be available for public review and comment in 2027, prior to final approval.

Has the treatment-facility
location been selected?
No. The Town is still evaluating multiple potential sites. A location must work for wastewater flows, treatment and discharge requirements, land availability, environmental constraints, and longterm operations.

Where would sewer service
begin?
The first construction phase is expected to focus on serving the downtown area. The final Phase 1 service area will also be shaped by the location selected for the treatment facility and the most efficient way to build and operate the system. The system would be designed so service can expand as additional funding becomes available.

Will every property in Town
receive sewer service right
away?
No. The first phase will serve the downtown area that can be built with available funding. Other areas may be served in later phases when funding, design, and environmental approvals are secured.

Will property owners be
required to connect?
No connection requirement has been established. The Town is evaluating approaches that would help connect enough initial customers for the system to operate efficiently while keeping user costs as low as possible.

How will homes and
businesses connect to the
collection system?
Some areas will connect directly to gravity sewer pipes while other lower-lying areas will have a small pump to lift wastewater into the system. This hybrid approach allows pipes to be shallower and reduces construction cost.
23 4
Description of Major
Milestone or Key Question Update or Answer
How is the Town working to
keep sewer service
affordable?
Affordability is a central commitment of the Town Council and project team. The Town is pursuing grant funding and other outside resources to reduce the costs that would otherwise be borne by local property owners. As the project advances, the Town will continue refining the financial analysis, seeking funding for additional phases and connections, and evaluating approaches that help make initial service as affordable as possible.

What will the project cost
residents?
The Town is refining the financial analysis. Grant funding is being pursued to reduce the amount residents may need to pay; final construction costs, connection costs, and any ongoing service charges are not yet established.

Will properties outside the
sewer service area pay for the
project?
Properties that do not receive sewer service are not expected to pay additional sewer taxes or fees for sewer service.

When could construction
begin?
Phase 1 construction is currently estimated to begin in 2028–2029, subject to completing environmental review, design, permitting, property acquisition, and funding.

Has any sewer infrastructure
already been built or installed?
No. Construction of any physical structures for the project cannot begin until environmental review, design, permitting, and property acquisition are completed. Additionally, the final design documents must be approved by the Town Council before a contractor is retained for construction.

How will construction
disruption be managed?
If approved, construction plans will include measures to limit impacts, especially near businesses. The Town will evaluate tools such as limits on open trench length, night work where appropriate, and trenchless construction methods.

How can residents stay
involved?
Sewer updates are provided monthly to the Town Council, and future environmental-review notices, meetings, and key project decisions will include opportunities for public comment. 24 TOWN COUNCIL
Meeting Minutes
6:00 PM – September 08, 2026

1. OPENING
The Regular meeting of the Paradise Town Council was called to order by Mayor Crowder at 6:01 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 Bolin.

COUNCIL MEMBERS PRESENT: Greg Bolin, Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde and Steve Crowder, Mayor
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Town Manager Jennifer Macarthy, Town Attorney Scott E. Huber, Town Clerk/Elections Official Melanie Elvis, Assistant Town Manager Marc Mattox, Community Development Director Susan Hartman, Community Development Director Tony Lindsey, Recovery and Economic Development Director Colette Curtis, Finance Director Aimee Beleu, Project Manager Brian Solecki, Police Chief Eric Reinbold, Fire Chief Jason Finney, and Information Technology Director, Luis Marquez. 1e. Camp Fire Recovery Updates - Written reports are included in the agenda packet. 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 updates. (110-60-062) 1f. Assistant Town Manager Marc Mattox provided an update on the Paradise Sewer Project. (960-70-009)

2. CONSENT CALENDAR
MOTION by Bolin, seconded by Lassonde, approved consent calendar items 2a, and 2c through 2g. Roll call vote was unanimous.
2a. Approved minutes of the August 10, 2026 Special Town Council meeting and August 11, 2026 Special and Regular Town Council meetings. 2b. REMOVED FROM THE CONSENT CALENDAR BY MAYOR CROWDER
2c. Reviewed and filed the 2026 Conflict of Interest Code Biennial Notice confirming the Town’s code of economic interest resolution is current and timely. (540-20-033)
25 2d. Approved the Amendment to the Memorandum of Understanding with Butte County for VEOCI virtual Emergency Operations Center services to align the agreement with the intended period of performance.

1. Andrew Waldrop commented on item 2d and the relationship between VEOCI and data centers. (420-50-055, 510-50-451)
2e. Reviewed and filed the August 2026 Quarterly Financial/HR Position Report. (385-20-056)
2f. Reviewed and received the FEMA/CalOES Category 4 Tree Removal Program Project Closeout Report to formally closeout the project and all associated contracts and agreements. (420-25-009, 510-20-405) 2g. 1. Approved publication of the Request for Qualifications (RFQ) for the HOME Infill New Construction for First-Time Homebuyers program; and,

2. Adopted Resolution No. 2026-56, “A Resolution of the Town Council of the Town of Paradise Amending and Updating the Home Investment Partnerships Program (HOME) Infill New Construction First-Time Home Buyer Program Guidelines, Previously Adopted by Resolution No. 2025-

64.” (710-10-098)

3. ITEMS REMOVED FROM CONSENT CALENDAR
2b. Mayor Crowder removed 2b from the consent calendar and recused himself from the dais for a potential conflict of interest.

MOTION by Bolin, seconded by Lassonde, approved August 2026 Cash Disbursements in the amount of $4,588,456.24. Roll call vote was unanimous with Steve Crowder absent and not voting. (310-10-035)

4. PUBLIC COMMUNICATION

1. Brenda Narayan provided an update on PG&E undergrounding efforts and power pole removal.

2. Cathlene White commented on the status of a neighboring property and asked when it was going to be abated.

3. Doug Taylor commented on his neighbor’s goats destroying his plants and property.

4. Christina Powell commented on Mayor Crowder’s ownership of A Stitch Above on his Form 700, Statement of Economic Interest.

5. PUBLIC HEARINGS
5a. Recovery & Economic Development Director Colette Curtis provided an overview of the Consolidated Annual Performance and Evaluation Report (CAPER) for the Community Development Block Grant (CDBG) Program. 26 Mayor Crowder opened the public hearing at: 6:28 p.m.

There were no public comments.

Mayor Crowder closed the public hearing at: 6:28 p.m.

MOTION by Bolin, seconded by Lassonde, authorized the Town Manager to submit the CAPER to the Department of Housing and Urban Development with any public comments received. Roll call vote was unanimous. (710-10-112)

6. COUNCIL CONSIDERATION
6a. Police Chief Eric Reinbold, Recovery & Economic Development Director Colette Curtis and Project Manager Brian Solecki presented the proposed updated emergency notification system guidelines, the public communication plan for use of the Emergency Warning System Sirens and an update on the In-Home Safe Units.

MOTION by Bolin, seconded by Culleton, approved the revised Town of Paradise Emergency Notification System Guidelines. Roll call vote was unanimous. (420-30-011)
6b. Finance Director Aimee Beleu presented the proposed Fire Apparatus Replacement Reserve Fund.

MOTION by Culleton, seconded by Lassonde,1. Adopted Resolution No. 2026-57, “A Resolution of the Town Council of the Town of Paradise Establishing the Fire Apparatus Replacement Reserve Fund and Directing Assistance by Hire revenues and Proceeds from the Disposition of TownOwned Fire Apparatus to the Fund”, and, 2. Approved the Fire Apparatus Replacement Reserve Fund Policy governing the use and administration of the Fund. Roll call vote was unanimous. (395-10-001, 440-30-007) Council Member Bolin recused himself from the dais due to a potential conflict of interest.
6c. Assistant Town Manager Marc Mattox presented the second quarterly update to the 2025 Building Division Audit Corrective Action Plan.

1. Donna Vairo commented that she thought not enforcing workmanship issues feels like the Town is circumventing the law, and the Town should find a way to also hold subcontractors accountable.

MOTION by Lassonde, seconded by Culleton,1. Received and filed the second quarterly update to the 2025 Building Division Audit Corrective Action Plan, covering the period June 1 through August 31, 2026; and,

2. Affirmed current operating procedures:
27 a. Limit independent review to completed projects with final approval and a Certificate of Occupancy, however, leaving an avenue open that a complaint may be escalated to the independent reviewer before being referred to staff,
b. Keep review focused on specific Building Code compliance—not workmanship, quality, private contracts, or civil liability. c. Maintain accountability and any Strikes with the permit applicant (including Owner-Builder)—not subcontractors or other non-permit holders. d. Confirm independent review remains visual and non-destructive, not a whole-home reinspection.

3. Direct staff require documented notice and a reasonable opportunity for the permit applicant to respond before Town intervention and review of complaint, (SB800 Law Template by Town or equivalent) for Code Compliance complaints; and,

4. Directed the Town Attorney to prepare a draft amendment to Ordinance 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 for extraordinary life-safety AND/OR cumulative impact for entire project provisions, including potential “one-strike” authority with due-process protections.

Roll call vote was unanimous with Council Member Bolin absent and not voting. (740-30-013)
6d. Recovery & Economic Development Director Colette Curtis provided an overview of the proposed agreement with North State Planning and Development Collective to produce an updated population estimate for the Town of Paradise.

MOTION by Lassonde, seconded by Bolin, authorized the Town Manager to enter into an agreement with the North State Planning and Development Collective to produce an updated population estimate for the Town of Paradise. Roll call vote was unanimous. (510-20-516)

7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Mayor Crowder introduced a letter of support for AB2700.

1. Tina Peszler commented on the bill’s history and next steps.

MOTION by Bolin, seconded by Culleton, approved a letter of support for AB2700. Roll call vote was unanimous. (180-30-101)
7b. Council Members’ written reports on standing, external and ad hoc committee representation were included in the agenda packet. 28 Mayor Crowder provided and update on the Fire Victims Trust.

Council Member Lange provided an overview of her committee attendance.

8. STAFF COMMUNICATION - None

9. CLOSED SESSION - None

10. ADJOURNMENT
Mayor Crowder closed the meeting at 8:16 p.m.

Date approved:

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

PARADISE TOWN COUNCIL
SPECIAL MEETING – 5:15 PM – September 08, 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: Town Manager Jennifer Macarthy, Town Attorney Scott E. Huber, Town Clerk/Elections Official Melanie Elvis, Assistant Town Manager Marc Mattox, Human Resources and Risk Management Director Crystal Peters, and Information Technology 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. 053-260-014. The negotiators for the property owner(s) are unknown at this time.
2b. Pursuant to Government Code section 54956.9(a), the Council will meet with the Town Manager, and the Town Attorney relating to existing condition: Town of Paradise v. Ernst & Young, LLP, United States District Court – Eastern District of California Case No. 2:26-cv-00410. 2c. Pursuant to Government Code section 54956.9(a), the Council will meet with the Town Manager, and the Town Attorney relating to existing condition: Leonardo Martin Perez v. Town of Paradise; Mollie Ann St. John; et al, Butte County Superior Court Case No. 25CV02703.

After reconvening from Closed Session at 6:00 p.m. Mayor Crowder announced that direction was given; no reportable action was taken.
30 3. ADJOURNMENT
Mayor Crowder adjourned the Council meeting at 6:00 p.m.

Date approved:

By: Attest:
___________________________ ________________________
Steve Crowder, Mayor Melanie Elvis, Town Clerk
31 TOWN OF PARADISE

CASH DISBURSEMENTS REPORT

FOR THE PERIOD OF
September 1, 2026 - September 30, 2026
32 CASH DISBURSEMENTS REPORT
September 1, 2026 - September 30, 2026
Check Date Pay Period End Description Amount Total
9/11/2026 9/6/2026 Net Payroll - Direct Deposits and Checks $ 311,489.13 9/25/2026 9/20/2026 Net Payroll - Direct Deposits and Checks $ 309,532.04 $ 621,021.17
Accounts Payable
Payroll Vendors: Taxes, PERS, Dues, Insurance, Etc. $ 577,505.09 Operations Vendors: Supplies, Contracts, Utilities, Etc. $8,554,843.18 TOTAL CASH DISBURSEMENTS ACCOUNTS PAYABLE $ 9,132,348.27 GRAND TOTAL CASH DISBURSEMENTS $ 9,753,369.44
APPROVED BY:

Aimee Beleu - Finance Director/Town Treasurer
APPROVED BY:

Jennifer Macarthy - Town Manager
33 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
AP TCB - General Checking
Check
92248 09/02/2026 Reconciled 09/09/2026 Accounts Payable ACCESS INFORMATION

PROTECTED
$136.58 $136.58 $0.00
92249 09/02/2026 Reconciled 09/11/2026 Accounts Payable Adams Ashby Group, Inc. $8,385.33 $8,385.33 $0.00 92250 09/02/2026 Reconciled 09/09/2026 Accounts Payable ADVANCED DOCUMENT

CONCEPTS
$54.70 $54.70 $0.00
92251 09/02/2026 Reconciled 09/04/2026 Accounts Payable Alekseev, Nadia $500.00 $500.00 $0.00 92252 09/02/2026 Reconciled 09/10/2026 Accounts Payable All-American Construction, Inc. $268,494.31 $268,494.31 $0.00 92253 09/02/2026 Reconciled 09/17/2026 Accounts Payable Alliance For Workforce Development, Inc.
$27,786.68 $27,786.68 $0.00
92254 09/02/2026 Reconciled 09/28/2026 Accounts Payable Amber Spencer $500.00 $500.00 $0.00 92255 09/02/2026 Reconciled 09/18/2026 Accounts Payable Archuleta, Derek, S $513.50 $513.50 $0.00 92256 09/02/2026 Reconciled 09/11/2026 Accounts Payable AT&T $89.46 $89.46 $0.00 92257 09/02/2026 Reconciled 09/09/2026 Accounts Payable Baker Tilly US, LLP $6,500.00 $6,500.00 $0.00 92258 09/02/2026 Reconciled 09/08/2026 Accounts Payable Broad & Gusman $4,000.00 $4,000.00 $0.00 92259 09/02/2026 Reconciled 09/08/2026 Accounts Payable Bug Smart $116.00 $116.00 $0.00 92260 09/02/2026 Open Accounts Payable Butte County Public Health Dept - Health Clinic
$26.00
92261 09/02/2026 Reconciled 09/09/2026 Accounts Payable CALIFORNIA BUILDING

STANDARDS COMMISSION
$1,350.90 $1,350.90 $0.00
92262 09/02/2026 Reconciled 09/08/2026 Accounts Payable California Concrete LLC $1,842.50 $1,842.50 $0.00 92263 09/02/2026 Reconciled 09/17/2026 Accounts Payable CAPTURE TECHNOLOGIES, INC. $1,860.00 $1,860.00 $0.00 92264 09/02/2026 Reconciled 09/10/2026 Accounts Payable Carollo Engineers, Inc. $264,961.41 $264,961.41 $0.00 92265 09/02/2026 Reconciled 09/11/2026 Accounts Payable Central Striping Service, Inc. $12,450.00 $12,450.00 $0.00 92266 09/02/2026 Reconciled 09/04/2026 Accounts Payable Chris Roberts General Construction $16,443.75 $16,443.75 $0.00 92267 09/02/2026 Reconciled 09/21/2026 Accounts Payable Cleary, Lillian $494.50 $494.50 $0.00 92268 09/02/2026 Reconciled 09/11/2026 Accounts Payable Coastland $7,774.76 $7,774.76 $0.00 92269 09/02/2026 Reconciled 09/09/2026 Accounts Payable Cole Huber LLP $45,274.66 $45,274.66 $0.00 92270 09/02/2026 Reconciled 09/11/2026 Accounts Payable CONTINENTAL BATTERY

COMPANY
$257.69 $257.69 $0.00
92271 09/02/2026 Open Accounts Payable Cooper, Andrew $529.00 92272 09/02/2026 Reconciled 09/18/2026 Accounts Payable De Lage Landen Public Finance LLC $1,562.50 $1,562.50 $0.00 92273 09/02/2026 Reconciled 09/04/2026 Accounts Payable Douglas Edward Dawson $69,000.00 $69,000.00 $0.00 92274 09/02/2026 Reconciled 09/10/2026 Accounts Payable Down Range Indoor Training Center $15.84 $15.84 $0.00 92275 09/02/2026 Reconciled 09/09/2026 Accounts Payable Effective Fitness Combatives, LLC $3,000.00 $3,000.00 $0.00 92276 09/02/2026 Reconciled 09/09/2026 Accounts Payable Fins, Fur, Feather Sports $21,690.41 $21,690.41 $0.00 92277 09/02/2026 Reconciled 09/16/2026 Accounts Payable Flex Technology Group LLC $4,994.31 $4,994.31 $0.00 92278 09/02/2026 Reconciled 09/09/2026 Accounts Payable FOOTHILL MILL & LUMBER $43.10 $43.10 $0.00 92279 09/02/2026 Reconciled 09/09/2026 Accounts Payable Gates, Matthew $3,504.09 $3,504.09 $0.00 92280 09/02/2026 Reconciled 09/10/2026 Accounts Payable GREAT AMERICA LEASING CORP. $157.70 $157.70 $0.00 92281 09/02/2026 Reconciled 09/18/2026 Accounts Payable Guardian Alliance Technologies Inc. $50.00 $50.00 $0.00 92282 09/02/2026 Reconciled 09/11/2026 Accounts Payable HLP, INC / CHAMELEON

SOFTWARE PRODUCTS
$1,235.19 $1,235.19 $0.00
92283 09/02/2026 Reconciled 09/09/2026 Accounts Payable INTERSTATE OIL COMPANY $587.91 $587.91 $0.00 92284 09/02/2026 Reconciled 09/22/2026 Accounts Payable James or Lavenia Riotto $250.00 $250.00 $0.00 92285 09/02/2026 Reconciled 09/09/2026 Accounts Payable KNIFE RIVER CONSTRUCTION $332,055.93 $332,055.93 $0.00 92286 09/02/2026 Reconciled 09/09/2026 Accounts Payable KNIFE RIVER CONSTRUCTION $3,039,555.92 $3,039,555.92 $0.00 92287 09/02/2026 Reconciled 09/10/2026 Accounts Payable L.N. CURTIS & SONS $1,052.85 $1,052.85 $0.00 92288 09/02/2026 Reconciled 09/11/2026 Accounts Payable LaDonna Foley $3,450.00 $3,450.00 $0.00 92289 09/02/2026 Reconciled 09/15/2026 Accounts Payable LEAF Capital Funding LLC $143.55 $143.55 $0.00 Wednesday, September 30,
2026
user: Aimee Beleu Pages: 1 of 8
Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2026 - To Payment Date: 9/30/2026 34 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92290 09/02/2026 Reconciled 09/14/2026 Accounts Payable LES SCHWAB TIRE CENTER -

MOTORPOOL
$20.99 $20.99 $0.00
92291 09/02/2026 Reconciled 09/09/2026 Accounts Payable LIFE ASSIST INC $786.30 $786.30 $0.00 92292 09/02/2026 Reconciled 09/16/2026 Accounts Payable Look Ahead Veterinary Services $692.28 $692.28 $0.00 92293 09/02/2026 Reconciled 09/14/2026 Accounts Payable Martin Construction $37,152.00 $37,152.00 $0.00 92294 09/02/2026 Reconciled 09/28/2026 Accounts Payable Michelle M Gates Stewart $3,200.00 $3,200.00 $0.00 92295 09/02/2026 Reconciled 09/10/2026 Accounts Payable MID VALLEY TITLE & ESCROW $100,000.00 $100,000.00 $0.00 92296 09/02/2026 Reconciled 09/10/2026 Accounts Payable Midwest Veterinary Supply, Inc $737.14 $737.14 $0.00 92297 09/02/2026 Reconciled 09/09/2026 Accounts Payable North State Tire Co. Inc. $574.66 $574.66 $0.00 92298 09/02/2026 Reconciled 09/09/2026 Accounts Payable NORTHGATE PETROLEUM CO $10,001.92 $10,001.92 $0.00 92299 09/02/2026 Reconciled 09/23/2026 Accounts Payable NORTHSTAR $2,080.00 $2,080.00 $0.00 92300 09/02/2026 Reconciled 09/10/2026 Accounts Payable O'REILLY AUTO PARTS $1,298.35 $1,298.35 $0.00 92301 09/02/2026 Reconciled 09/10/2026 Accounts Payable OROVILLE FORD $82.96 $82.96 $0.00 92302 09/02/2026 Open Accounts Payable Oroville Tow & Salvage $1,120.00 92303 09/02/2026 Reconciled 09/04/2026 Accounts Payable PARADISE IRRIGATION DIST $2,609.52 $2,609.52 $0.00 92304 09/02/2026 Reconciled 09/09/2026 Accounts Payable PARADISE POST $107.79 $107.79 $0.00 92305 09/02/2026 Reconciled 09/04/2026 Accounts Payable Pioneer Engineering & Construction $7,312.50 $7,312.50 $0.00 92306 09/02/2026 Reconciled 09/18/2026 Accounts Payable PLACER LABS INC. $14,580.00 $14,580.00 $0.00 92307 09/02/2026 Reconciled 09/10/2026 Accounts Payable Psomas $299,382.95 $299,382.95 $0.00 92308 09/02/2026 Reconciled 09/09/2026 Accounts Payable Regional Government Services Authority
$3,937.40 $3,937.40 $0.00
92309 09/02/2026 Reconciled 09/10/2026 Accounts Payable RENTAL GUYS - CHICO $315.88 $315.88 $0.00 92310 09/02/2026 Reconciled 09/03/2026 Accounts Payable Ridge Builders LLC $29,634.07 $29,634.07 $0.00 92311 09/02/2026 Reconciled 09/10/2026 Accounts Payable SHI International Corp $9,597.01 $9,597.01 $0.00 92312 09/02/2026 Reconciled 09/15/2026 Accounts Payable Skyridge Brothers LLC $500.00 $500.00 $0.00 92313 09/02/2026 Reconciled 09/10/2026 Accounts Payable Spherion Staffing $6,872.01 $6,872.01 $0.00 92314 09/02/2026 Reconciled 09/08/2026 Accounts Payable Tahoe Pure Water Co. $118.50 $118.50 $0.00 92315 09/02/2026 Reconciled 09/09/2026 Accounts Payable The Pape' Group INC $1,544.55 $1,544.55 $0.00 92316 09/02/2026 Reconciled 09/15/2026 Accounts Payable THOMAS ACE HARDWARE $18.23 $18.23 $0.00 92317 09/02/2026 Reconciled 09/15/2026 Accounts Payable THOMAS ACE HARDWARE - FIRE DEPT.
$70.28 $70.28 $0.00
92318 09/02/2026 Reconciled 09/15/2026 Accounts Payable THOMAS ACE HARDWARE -

MOTORPOOL
$140.63 $140.63 $0.00
92319 09/02/2026 Reconciled 09/14/2026 Accounts Payable THRIFTY ROOTER $387.31 $387.31 $0.00 92320 09/02/2026 Reconciled 09/18/2026 Accounts Payable Top Notch Commercial Cleaning Inc. $7,000.00 $7,000.00 $0.00 92321 09/02/2026 Reconciled 09/10/2026 Accounts Payable Tri Flame Propane $150.24 $150.24 $0.00 92322 09/02/2026 Reconciled 09/10/2026 Accounts Payable TUCKER PEST CONTROL INC $115.00 $115.00 $0.00 92323 09/02/2026 Reconciled 09/11/2026 Accounts Payable ULINE $444.84 $444.84 $0.00 92324 09/02/2026 Reconciled 09/18/2026 Accounts Payable VALLEY OAK VETERINARY CENTER
$223.06 $223.06 $0.00
92325 09/02/2026 Reconciled 09/18/2026 Accounts Payable Waste Tire Products R & D $1,492.50 $1,492.50 $0.00 92326 09/02/2026 Reconciled 09/09/2026 Accounts Payable Wood, Montana, S $494.50 $494.50 $0.00 92327 09/02/2026 Reconciled 09/02/2026 Accounts Payable Kanner, Justin $392.26 $392.26 $0.00 92328 09/08/2026 Reconciled 09/24/2026 Accounts Payable Rooney Family Trust $15,561.60 $15,561.60 $0.00 92329 09/10/2026 Open Accounts Payable Aflac $57.98
92330 09/10/2026 Open Accounts Payable Met Life $14,591.80 92331 09/10/2026 Open Accounts Payable OPERATING ENGINEERS $1,440.00 92332 09/10/2026 Open Accounts Payable PARADISE POLICE OFFICERS

ASSOCIATION
$2,503.36
92333 09/10/2026 Open Accounts Payable SUN LIFE INSURANCE $9,119.67 Wednesday, September 30,
2026
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Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2026 - To Payment Date: 9/30/2026 35 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92334 09/10/2026 Open Accounts Payable SUPERIOR VISION SVC INC $930.66 92335 09/10/2026 Open Accounts Payable TOP CONFIDENTIAL MID MGMT

ASSOCIATION
$120.00
92336 09/11/2026 Open Accounts Payable ICMA 457 - MissionSquare $6,045.07 92337 09/11/2026 Open Accounts Payable Oregon Department of Revenue $483.00 92338 09/11/2026 Open Accounts Payable STATE DISBURSEMENT UNIT $194.76 92339 09/16/2026 Reconciled 09/22/2026 Accounts Payable Advance Window Tinting $8,334.00 $8,334.00 $0.00 92340 09/16/2026 Reconciled 09/22/2026 Accounts Payable ADVANCED DOCUMENT

CONCEPTS
$284.04 $284.04 $0.00
92341 09/16/2026 Reconciled 09/24/2026 Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $271.07 $271.07 $0.00 92342 09/16/2026 Reconciled 09/24/2026 Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $135.54 $135.54 $0.00 92343 09/16/2026 Reconciled 09/24/2026 Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $103.50 $103.50 $0.00 92344 09/16/2026 Reconciled 09/24/2026 Accounts Payable AT&T/CALNET3 - REPEATER LINES $198.19 $198.19 $0.00 92345 09/16/2026 Reconciled 09/24/2026 Accounts Payable AT&T/CALNET3 - COMMUNITY PARK
$26.26 $26.26 $0.00
92346 09/16/2026 Reconciled 09/24/2026 Accounts Payable AT&T/CALNET3 - Summary $3,131.81 $3,131.81 $0.00 92347 09/16/2026 Reconciled 09/24/2026 Accounts Payable AT&T/CALNET3 - Summary $26.53 $26.53 $0.00 92348 09/16/2026 Reconciled 09/24/2026 Accounts Payable AT&T/CALNET3 - TH/FDPD FIBER LINES
$1,063.86 $1,063.86 $0.00
92349 09/16/2026 Reconciled 09/28/2026 Accounts Payable BATTERIES PLUS $366.82 $366.82 $0.00 92350 09/16/2026 Reconciled 09/22/2026 Accounts Payable Bear Electrical Systems, Inc $1,655.00 $1,655.00 $0.00 92351 09/16/2026 Reconciled 09/24/2026 Accounts Payable Bidwell Truck & Auto $4,020.69 $4,020.69 $0.00 92352 09/16/2026 Reconciled 09/24/2026 Accounts Payable Biometrics4ALL, Inc $77.00 $77.00 $0.00 92353 09/16/2026 Reconciled 09/21/2026 Accounts Payable BUTTE CO AIR QUALITY

MANAGEMENT DISTRICT
$417.05 $417.05 $0.00
92354 09/16/2026 Reconciled 09/28/2026 Accounts Payable BUTTE COMMUNITY COLLEGE $1,881.68 $1,881.68 $0.00 92355 09/16/2026 Reconciled 09/23/2026 Accounts Payable California Concrete LLC $855.00 $855.00 $0.00 92356 09/16/2026 Reconciled 09/23/2026 Accounts Payable CALIFORNIA STATE DEPARTMENT

OF JUSTICE
$1,361.00 $1,361.00 $0.00
92357 09/16/2026 Reconciled 09/25/2026 Accounts Payable CONTINENTAL BATTERY COMPANY $257.69 $257.69 $0.00 92358 09/16/2026 Open Accounts Payable Cooper, Andrew $253.00 92359 09/16/2026 Reconciled 09/23/2026 Accounts Payable Dokken Engineering, Inc. $355,449.01 $355,449.01 $0.00 92360 09/16/2026 Reconciled 09/21/2026 Accounts Payable Elam IT, Jon, Elam $4,055.82 $4,055.82 $0.00 92361 09/16/2026 Reconciled 09/21/2026 Accounts Payable Elk Grove Auto / Winner Chevrolet $67,251.05 $67,251.05 $0.00 92362 09/16/2026 Open Accounts Payable Everlaw, Inc. $10,800.00 92363 09/16/2026 Open Accounts Payable Flex Technology Group LLC $2,124.73 92364 09/16/2026 Reconciled 09/25/2026 Accounts Payable GREAT AMERICA LEASING CORP. $146.82 $146.82 $0.00 92365 09/16/2026 Reconciled 09/21/2026 Accounts Payable GREEN RIDGE LANDSCAPING $7,235.67 $7,235.67 $0.00 92366 09/16/2026 Reconciled 09/23/2026 Accounts Payable Gustavo Diaz $253.00 $253.00 $0.00 92367 09/16/2026 Reconciled 09/28/2026 Accounts Payable HARTMAN, SUSAN $301.00 $301.00 $0.00 92368 09/16/2026 Reconciled 09/21/2026 Accounts Payable INTERSTATE OIL COMPANY $453.62 $453.62 $0.00 92369 09/16/2026 Reconciled 09/24/2026 Accounts Payable INTERSTATE SALES $975.98 $975.98 $0.00 92370 09/16/2026 Open Accounts Payable Interwest Consulting Group, Inc. $9,837.50 92371 09/16/2026 Reconciled 09/24/2026 Accounts Payable Jacobs Engineering Group Inc. $187,501.91 $187,501.91 $0.00 92372 09/16/2026 Reconciled 09/23/2026 Accounts Payable Jennifer Arbuckle $5,250.00 $5,250.00 $0.00 92373 09/16/2026 Reconciled 09/22/2026 Accounts Payable JOHNNY ON THE SPOT

PORTABLES
$399.00 $399.00 $0.00
92374 09/16/2026 Reconciled 09/22/2026 Accounts Payable Kevin Sharrah Designs $4,148.88 $4,148.88 $0.00 92375 09/16/2026 Reconciled 09/22/2026 Accounts Payable KNIFE RIVER CONSTRUCTION $483,057.55 $483,057.55 $0.00 Wednesday, September 30,
2026
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Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2026 - To Payment Date: 9/30/2026 36 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92376 09/16/2026 Reconciled 09/24/2026 Accounts Payable KOEFRAN INDUSTRIES $1,200.00 $1,200.00 $0.00 92377 09/16/2026 Reconciled 09/22/2026 Accounts Payable L.N. CURTIS & SONS $1,981.18 $1,981.18 $0.00 92378 09/16/2026 Reconciled 09/24/2026 Accounts Payable LACO Associates $22,356.25 $22,356.25 $0.00 92379 09/16/2026 Reconciled 09/22/2026 Accounts Payable LIFE ASSIST INC $850.80 $850.80 $0.00 92380 09/16/2026 Reconciled 09/22/2026 Accounts Payable Meyers Police K-9 Training, LLC $2,125.00 $2,125.00 $0.00 92381 09/16/2026 Reconciled 09/18/2026 Accounts Payable Morgan Ridge Construction, Inc. $95,371.50 $95,371.50 $0.00 92382 09/16/2026 Reconciled 09/22/2026 Accounts Payable North State Tire Co. Inc. $906.21 $906.21 $0.00 92383 09/16/2026 Reconciled 09/22/2026 Accounts Payable NORTHGATE PETROLEUM CO $9,412.71 $9,412.71 $0.00 92384 09/16/2026 Reconciled 09/23/2026 Accounts Payable NORTHSTAR $1,206.00 $1,206.00 $0.00 92385 09/16/2026 Reconciled 09/21/2026 Accounts Payable NORTHSTATE AGGREGATE, INC. $79.39 $79.39 $0.00 92386 09/16/2026 Reconciled 09/22/2026 Accounts Payable O'REILLY AUTO PARTS $213.47 $213.47 $0.00 92387 09/16/2026 Reconciled 09/17/2026 Accounts Payable Old Republic Title Company $8,000.00 $8,000.00 $0.00 92388 09/16/2026 Reconciled 09/24/2026 Accounts Payable PARADISE POST $85.35 $85.35 $0.00 92389 09/16/2026 Reconciled 09/22/2026 Accounts Payable PlaceWorks Inc $43,144.26 $43,144.26 $0.00 92390 09/16/2026 Open Accounts Payable Primo Brands $24.98 92391 09/16/2026 Reconciled 09/24/2026 Accounts Payable Psomas $115,957.37 $115,957.37 $0.00 92392 09/16/2026 Open Accounts Payable Selman & Company LLC $5.60 92393 09/16/2026 Reconciled 09/17/2026 Accounts Payable Sierra Nevada Construction $13,970.00 $13,970.00 $0.00 92394 09/16/2026 Reconciled 09/24/2026 Accounts Payable Spherion Staffing $4,219.43 $4,219.43 $0.00 92395 09/16/2026 Reconciled 09/21/2026 Accounts Payable Stratti $4,963.05 $4,963.05 $0.00 92396 09/16/2026 Reconciled 09/21/2026 Accounts Payable T and S DVBE Inc. $7,968.94 $7,968.94 $0.00 92397 09/16/2026 Reconciled 09/21/2026 Accounts Payable Tahoe Pure Water Co. $242.50 $242.50 $0.00 92398 09/16/2026 Reconciled 09/22/2026 Accounts Payable Tech Supply $144.82 $144.82 $0.00 92399 09/16/2026 Reconciled 09/25/2026 Accounts Payable The Ferguson Group $5,000.00 $5,000.00 $0.00 92400 09/16/2026 Open Accounts Payable THOMAS ACE HARDWARE $44.57 92401 09/16/2026 Reconciled 09/29/2026 Accounts Payable THOMAS ACE HARDWARE - ENG.

DEPT.
$1,263.49 $1,263.49 $0.00
92402 09/16/2026 Reconciled 09/29/2026 Accounts Payable THOMAS ACE HARDWARE - FIRE DEPT.
$13.35 $13.35 $0.00
92403 09/16/2026 Reconciled 09/25/2026 Accounts Payable Top Notch Commercial Cleaning Inc. $6,200.00 $6,200.00 $0.00 92404 09/16/2026 Open Accounts Payable TURNBOW, DEBBIE $64.00 92405 09/16/2026 Reconciled 09/25/2026 Accounts Payable UNICO Engineering, Inc. $121,908.24 $121,908.24 $0.00 92406 09/16/2026 Open Accounts Payable VALLEY OAK VETERINARY CENTER
$928.83
92407 09/16/2026 Open Accounts Payable Vannucci, Dominic $253.00 92408 09/16/2026 Open Accounts Payable Dixon, Heather $141.23 92409 09/16/2026 Reconciled 09/23/2026 Accounts Payable Gonzales, Steve $137.80 $137.80 $0.00 92410 09/16/2026 Open Accounts Payable Jergentz, Kim $71.39 92411 09/16/2026 Open Accounts Payable Lacroix, Jane $1,325.86 92412 09/16/2026 Open Accounts Payable O'Brien, Michael $163.97 92413 09/16/2026 Open Accounts Payable Oliver , LeAnn $36.00 92414 09/16/2026 Open Accounts Payable Reed , Ben $120.34 92415 09/16/2026 Open Accounts Payable West, Tyler $553.83 92416 09/22/2026 Reconciled 09/22/2026 Accounts Payable Bruce M Jones Construction, Bruce M, Jones
$21,739.00 $21,739.00 $0.00
92417 09/22/2026 Open Accounts Payable Gates, Matthew $3,504.09 92418 09/22/2026 Open Accounts Payable Smith, Kent $300.00 92419 09/25/2026 Open Accounts Payable ICMA 457 - MissionSquare $6,149.41 92420 09/25/2026 Open Accounts Payable Oregon Department of Revenue $253.00 92421 09/25/2026 Open Accounts Payable STATE DISBURSEMENT UNIT $194.76 Wednesday, September 30,
2026
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Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2026 - To Payment Date: 9/30/2026 37 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92422 09/28/2026 Open Accounts Payable Alvies, John $19.00 92423 09/28/2026 Open Accounts Payable David Anderson , Anthony & Debroah $201.29 92424 09/28/2026 Open Accounts Payable Payton Haury $19.00 92425 09/28/2026 Open Accounts Payable Shearer, Jacqueline $117.84 92426 09/28/2026 Open Accounts Payable Vannucci, Dominic $6.10 92427 09/28/2026 Open Accounts Payable Vannucci, Dominic $253.00 92428 09/28/2026 Open Accounts Payable Vannucci, Dominic $349.50 92429 09/28/2026 Open Accounts Payable Wood, Montana, S $19.00 92430 09/29/2026 Open Accounts Payable ACCESS INFORMATION

PROTECTED
$138.14
92431 09/29/2026 Open Accounts Payable Anderson Construction $38,220.00 92432 09/29/2026 Open Accounts Payable Broad & Gusman $4,000.00 92433 09/29/2026 Open Accounts Payable BUTTE CO DISTRICT ATTORNEY $5,000.00 92434 09/29/2026 Open Accounts Payable BUTTE-GLENN COMMUNITY

COLLEGE DISTRICT
$29,375.42
92435 09/29/2026 Open Accounts Payable C & C ROOFING, INC. $27,084.61 92436 09/29/2026 Open Accounts Payable CALIFORNIA BUILDING

STANDARDS COMMISSION
$810.00
92437 09/29/2026 Open Accounts Payable California Concrete LLC $997.50 92438 09/29/2026 Open Accounts Payable CALIFORNIA STATE DEPARTMENT

OF JUSTICE
$784.00
92439 09/29/2026 Open Accounts Payable Carollo Engineers, Inc. $4,906.93 92440 09/29/2026 Open Accounts Payable Cathcart, Sylace $989.00 92441 09/29/2026 Open Accounts Payable Cleary, Lillian $434.72 92442 09/29/2026 Open Accounts Payable Cooper, Andrew $437.00 92443 09/29/2026 Open Accounts Payable Dansons Glass LLC $11,763.83 92444 09/29/2026 Open Accounts Payable Department of Housing and Community Development
$254,280.27
92445 09/29/2026 Open Accounts Payable Digital Housing Development Inc. $2,450.00 92446 09/29/2026 Open Accounts Payable ENLOE MEDICAL CENTER, INC. $2,590.00 92447 09/29/2026 Open Accounts Payable GREAT AMERICA LEASING CORP. $157.70 92448 09/29/2026 Open Accounts Payable Gustavo Diaz $1,333.00 92449 09/29/2026 Open Accounts Payable HDR Engineering, Inc $86,687.73 92450 09/29/2026 Open Accounts Payable HINDERLITER, DE LLAMAS & ASSOCIATES INC.
$600.00
92451 09/29/2026 Open Accounts Payable HLP, INC / CHAMELEON

SOFTWARE PRODUCTS
$4.55
92452 09/29/2026 Open Accounts Payable INTERSTATE OIL COMPANY $373.61 92453 09/29/2026 Open Accounts Payable INTERSTATE SALES $328.97 92454 09/29/2026 Open Accounts Payable James or Lavenia Riotto $300.00 92455 09/29/2026 Open Accounts Payable KNIFE RIVER CONSTRUCTION $489,277.25 92456 09/29/2026 Open Accounts Payable KNIFE RIVER CONSTRUCTION $745.95 92457 09/29/2026 Open Accounts Payable L.N. CURTIS & SONS $1,052.37 92458 09/29/2026 Open Accounts Payable Law Office of Gregory P. Einhorn $1,200.00 92459 09/29/2026 Open Accounts Payable LEAF Capital Funding LLC $130.50 92460 09/29/2026 Open Accounts Payable LIFE ASSIST INC $1,002.17 92461 09/29/2026 Open Accounts Payable Mercy Housing California 114, L.P. $63,787.50 92462 09/29/2026 Open Accounts Payable Mercy Housing California 114, L.P. $73,231.90 92463 09/29/2026 Open Accounts Payable Mercy Housing California 114, L.P. $626,957.39 92464 09/29/2026 Open Accounts Payable MES I ACQUISITION INC $1,623.38 92465 09/29/2026 Open Accounts Payable MID VALLEY TITLE & ESCROW $8,076.15 Wednesday, September 30,
2026
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Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2026 - To Payment Date: 9/30/2026 38 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
92466 09/29/2026 Open Accounts Payable MILLER GLASS INC $18,693.75 92467 09/29/2026 Open Accounts Payable NAPA Auto Parts $70.54 92468 09/29/2026 Open Accounts Payable NCCSIF TREASURER $82,341.25 92469 09/29/2026 Open Accounts Payable North State Construction $8,250.00 92470 09/29/2026 Open Accounts Payable North State Tire Co. Inc. $1,000.58 92471 09/29/2026 Open Accounts Payable NORTHERN RECYCLING & WASTE SERVICES, INC.
$2,627.75
92472 09/29/2026 Open Accounts Payable NORTHGATE PETROLEUM CO $10,255.69 92473 09/29/2026 Open Accounts Payable O'REILLY AUTO PARTS $1,503.87 92474 09/29/2026 Open Accounts Payable Oakley, Amannda $66.00 92475 09/29/2026 Open Accounts Payable OFFICE DEPOT ACCT#36233169 $64.02 92476 09/29/2026 Open Accounts Payable PARADISE ART CENTER $25,592.00 92477 09/29/2026 Open Accounts Payable PARADISE IRRIGATION DIST $2,290.49 92478 09/29/2026 Open Accounts Payable PARADISE PERFORMING ARTS CENTER
$14,408.00
92479 09/29/2026 Open Accounts Payable PARADISE POST $51.69 92480 09/29/2026 Open Accounts Payable PARADISE RIDGE CHAMBER OF

COMMERCE
$205.00
92481 09/29/2026 Open Accounts Payable Parks, Lorissa $236.50 92482 09/29/2026 Open Accounts Payable Regional Government Services Authority
$7,410.00
92483 09/29/2026 Open Accounts Payable Robinson, Lisa $19.00 92484 09/29/2026 Open Accounts Payable Silkshop Inc. $3,424.33 92485 09/29/2026 Open Accounts Payable T and S DVBE Inc. $42,650.58 92486 09/29/2026 Open Accounts Payable Tahoe Pure Water Co. $151.10 92487 09/29/2026 Open Accounts Payable The Ferguson Group $289.46 92488 09/29/2026 Open Accounts Payable THOMAS ACE HARDWARE $39.13 92489 09/29/2026 Open Accounts Payable THOMAS ACE HARDWARE - ENG.

DEPT.
$353.92
92490 09/29/2026 Open Accounts Payable Tuck, Kevin $40.00 92491 09/29/2026 Open Accounts Payable TUCKER PEST CONTROL INC $115.00 92492 09/29/2026 Open Accounts Payable U.T.B. Studios, LLC, Everett $3,750.00 92493 09/29/2026 Open Accounts Payable Wayne Dawson Construction $16,233.00 92494 09/29/2026 Open Accounts Payable WILSON PRINTING $869.09 92495 09/29/2026 Open Accounts Payable WITTMEIER AUTO CENTER $203.56 92496 09/29/2026 Open Accounts Payable Wood, Montana, S $344.00 92497 09/29/2026 Open Accounts Payable Worthington, Brooke $236.50 92498 09/29/2026 Open Accounts Payable Kroll, Matthew $36.00 Type Check Totals: 251 Transactions $8,403,620.87 $6,343,371.41 $0.00 EFT
655 09/01/2026 Reconciled 09/02/2026 Accounts Payable ING LIFE INS & ANNUITY COMPANY $9,773.58 $9,773.58 $0.00 656 09/02/2026 Reconciled 09/04/2026 Accounts Payable Amazon Capital Services $2,888.32 $2,888.32 $0.00 657 09/02/2026 Reconciled 09/08/2026 Accounts Payable COMCAST CABLE $17.17 $17.17 $0.00 658 09/02/2026 Reconciled 09/08/2026 Accounts Payable COMCAST CABLE $184.30 $184.30 $0.00 659 09/02/2026 Reconciled 09/15/2026 Accounts Payable Computershare $136,668.79 $136,668.79 $0.00 660 09/02/2026 Reconciled 09/08/2026 Accounts Payable PACIFIC GAS & ELECTRIC $1,467.34 $1,467.34 $0.00 661 09/02/2026 Reconciled 09/08/2026 Accounts Payable PACIFIC GAS & ELECTRIC $171.88 $171.88 $0.00 662 09/02/2026 Reconciled 09/08/2026 Accounts Payable T MOBILE USA, INC. $2,121.22 $2,121.22 $0.00 663 09/08/2026 Reconciled 09/10/2026 Accounts Payable Amazon Capital Services $40.88 $40.88 $0.00 664 09/08/2026 Reconciled 09/10/2026 Accounts Payable COMCAST CABLE $883.50 $883.50 $0.00 Wednesday, September 30,
2026
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Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2026 - To Payment Date: 9/30/2026 39 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
665 09/08/2026 Reconciled 09/10/2026 Accounts Payable COMCAST CABLE $453.50 $453.50 $0.00 666 09/08/2026 Reconciled 09/10/2026 Accounts Payable PACIFIC GAS & ELECTRIC $540.10 $540.10 $0.00 667 09/08/2026 Reconciled 09/10/2026 Accounts Payable PACIFIC GAS & ELECTRIC $11.51 $11.51 $0.00 668 09/08/2026 Reconciled 09/10/2026 Accounts Payable PACIFIC GAS & ELECTRIC $25.04 $25.04 $0.00 669 09/08/2026 Reconciled 09/10/2026 Accounts Payable PACIFIC GAS & ELECTRIC $392.14 $392.14 $0.00 670 09/08/2026 Reconciled 09/10/2026 Accounts Payable PACIFIC GAS & ELECTRIC $55.20 $55.20 $0.00 671 09/10/2026 Reconciled 09/10/2026 Accounts Payable CALPERS $203,879.36 $203,879.36 $0.00 672 09/11/2026 Reconciled 09/14/2026 Accounts Payable CALPERS - RETIREMENT $75,610.17 $75,610.17 $0.00 673 09/11/2026 Reconciled 09/14/2026 Accounts Payable EMPLOYMENT DEVELOPMENT

DEPARTMENT
$18,460.62 $18,460.62 $0.00
674 09/11/2026 Reconciled 09/14/2026 Accounts Payable ING LIFE INS & ANNUITY COMPANY $9,773.58 $9,773.58 $0.00 675 09/11/2026 Reconciled 09/14/2026 Accounts Payable INTERNAL REVENUE SERVICE $58,741.19 $58,741.19 $0.00 676 09/16/2026 Reconciled 09/18/2026 Accounts Payable Amazon Capital Services $1,264.49 $1,264.49 $0.00 677 09/16/2026 Reconciled 09/21/2026 Accounts Payable AT&T MOBILITY $108.00 $108.00 $0.00 678 09/16/2026 Reconciled 09/21/2026 Accounts Payable COMCAST CABLE $429.25 $429.25 $0.00 679 09/16/2026 Reconciled 09/21/2026 Accounts Payable PACIFIC GAS & ELECTRIC $1,449.36 $1,449.36 $0.00 680 09/16/2026 Reconciled 09/21/2026 Accounts Payable PACIFIC GAS & ELECTRIC $150.99 $150.99 $0.00 681 09/16/2026 Reconciled 09/21/2026 Accounts Payable PACIFIC GAS & ELECTRIC $18,709.77 $18,709.77 $0.00 682 09/16/2026 Reconciled 09/18/2026 Accounts Payable Tri Counties Bank $16,658.10 $16,658.10 $0.00 683 09/16/2026 Reconciled 09/21/2026 Accounts Payable VERIZON WIRELESS $1,402.35 $1,402.35 $0.00 684 09/25/2026 Reconciled 09/28/2026 Accounts Payable CALPERS - RETIREMENT $74,801.88 $74,801.88 $0.00 685 09/25/2026 Reconciled 09/25/2026 Accounts Payable EMPLOYMENT DEVELOPMENT

DEPARTMENT
$17,960.16 $17,960.16 $0.00
686 09/25/2026 Reconciled 09/28/2026 Accounts Payable ING LIFE INS & ANNUITY COMPANY $9,773.58 $9,773.58 $0.00 687 09/25/2026 Reconciled 09/25/2026 Accounts Payable INTERNAL REVENUE SERVICE $57,383.50 $57,383.50 $0.00 688 09/29/2026 Open Accounts Payable Amazon Capital Services $2,079.43 689 09/29/2026 Open Accounts Payable COMCAST CABLE $444.25 690 09/29/2026 Open Accounts Payable PACIFIC GAS & ELECTRIC $1,165.85 Type EFT Totals: 36 Transactions $725,940.35 $722,250.82 $0.00 AP TCB - General Checking Totals
Checks Status Count Transaction Amount Reconciled Amount Open 112 $2,060,249.46 $0.00
Reconciled 139 $6,343,371.41 $6,343,371.41
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 251 $8,403,620.87 $6,343,371.41
EFTs Status Count Transaction Amount Reconciled Amount
Open 3 $3,689.53 $0.00
Reconciled 33 $722,250.82 $722,250.82
Voided 0 $0.00 $0.00
Total 36 $725,940.35 $722,250.82
All Status Count Transaction Amount Reconciled Amount
Open 115 $2,063,938.99 $0.00
Reconciled 172 $7,065,622.23 $7,065,622.23
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 287 $9,129,561.22 $7,065,622.23
Wednesday, September 30,
2026
user: Aimee Beleu Pages: 7 of 8
Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2026 - To Payment Date: 9/30/2026 40 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
TCB Clearing - Cash Clearing/CC
EFT
5 09/29/2026 Open Accounts Payable T MOBILE USA, INC. $2,787.05 Type EFT Totals: 1 Transactions $2,787.05
TCB Clearing - Cash Clearing/CC Totals
Checks Status Count Transaction Amount Reconciled Amount Open 0 $0.00 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 0 $0.00 $0.00
EFTs Status Count Transaction Amount Reconciled Amount
Open 1 $2,787.05 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Total 1 $2,787.05 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 1 $2,787.05 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 1 $2,787.05 $0.00
Grand Totals:

Checks Status Count Transaction Amount Reconciled Amount Open 112 $2,060,249.46 $0.00
Reconciled 139 $6,343,371.41 $6,343,371.41
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 251 $8,403,620.87 $6,343,371.41
EFTs Status Count Transaction Amount Reconciled Amount
Open 4 $6,476.58 $0.00
Reconciled 33 $722,250.82 $722,250.82
Voided 0 $0.00 $0.00
Total 37 $728,727.40 $722,250.82
All Status Count Transaction Amount Reconciled Amount
Open 116 $2,066,726.04 $0.00
Reconciled 172 $7,065,622.23 $7,065,622.23
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 288 $9,132,348.27 $7,065,622.23
Wednesday, September 30,
2026
user: Aimee Beleu Pages: 8 of 8
Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2026 - To Payment Date: 9/30/2026 41 Town of Paradise
Council Agenda Summary
Date: October 13, 2026
Agenda Item: 2(c)
ORIGINATED BY: Aimee Beleu, Finance Director/Town Treasurer REVIEWED BY: Jennifer Macarthy, Town Manager &
Scott Huber, Attorney
SUBJECT: Authorization to Piggyback Butte County Contract MPC0084 for Multifunction Printers and Related Services with Global Office, Inc.

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Authorize the Town to utilize (piggyback) Butte County Managed Procurement Contract MPC0084 with Global Office, Inc. for the lease, service, and maintenance of multifunction printers and related equipment; AND

2. Authorize the Town Manager to execute the necessary lease, maintenance, and related agreement documents for a 60-month term, subject to final review and approval as to form by the Town Attorney; OR

3. Provide alternate direction to Town staff.

Background:

The Town currently utilizes multiple copiers, multifunction devices, and printers across Town facilities. Staff reviewed options for replacing and standardizing this equipment and received a proposal from Global Office, Inc. for a Town-wide equipment fleet and related service and maintenance.

Butte County issued Request for Proposals (RFP) No. 50-23 for multi-function device lease, service, and maintenance and awarded the resulting contract to Global Office, Inc. The resulting Managed Procurement Contract (MPC0084) includes a Public Agency Clause that allows other California public agencies, including cities and municipalities, to participate in the award through a cooperative or “piggyback” procurement.

Global Office, Inc. has provided documentation confirming that the Town of Paradise is eligible to utilize the Butte County contract. Under the proposal, the Town would replace and standardize equipment at Town Hall, the Police Department, Fire Department, Animal Shelter, and Building Resiliency Center.

The proposed equipment includes two Canon imageFORCE C5150 multifunction devices, three Canon imageFORCE C5140 multifunction devices, four Canon imageFORCE C3126 multifunction devices, and two Brother HL-EX470W color laser printers, for a total of eleven devices.
42 Analysis:

Staff recommends utilizing Butte County Contract MPC0084 as a piggyback procurement rather than conducting a separate Town solicitation. The underlying Butte County contract was competitively solicited through RFP No. 50-23 and expressly allows other California public agencies to participate in the award.

The Global Office proposal provides a 60-month equipment lease together with service and maintenance. The equipment would be installed at multiple Town locations and would include network setup, monitoring, preventative maintenance, repair, parts, labor, and supplies as provided in the applicable agreements.

The proposed fleet consists of:
• Two Canon imageFORCE C5150 multifunction devices;
• Three Canon imageFORCE C5140 multifunction devices;
• Four Canon imageFORCE C3126 multifunction devices; and • Two Brother HL-EX470W color laser printers.

The maintenance agreement provides shared per-copy rates across the machines, automated meter collection, remote support, and service response commitments. Utilizing one vendor and a standardized fleet is intended to simplify equipment management, service requests, supply ordering, and ongoing support across Town departments.

Because the Town would be using the competitively procured Butte County contract and its Public Agency Clause, the procurement can be completed under the existing cooperative contract terms without issuing a separate solicitation.

Financial Impact:

The proposed equipment lease is $1,244 per month for 60 months, plus applicable taxes, for a base lease cost of $74,640 over the five-year term before taxes and other applicable fees.

Service and maintenance charges are usage-based. The proposal identifies shared per-copy rates of $0.0098 for black-and-white images and $0.0590 for color images. The maintenance agreement also includes certain service-related fees and provides for annual rate adjustments in accordance with the agreement terms.

ATTACHMENTS:

1. Global Office, Inc. Proposal Packet

2. Butte County Managed Procurement Contract MPC0084 / Public Agency Clause Documentation
43 Proposal
Prepared
For
Presented to Presented by
Aimee Beleu Billy Hansen
44 Business Offerings
& Solutions
Copiers &
Multifunction
Devices
Canon Multifunction Copiers
Canon Color Copiers
Canon Black & White Copiers
Canon Large Format Printers
Brother Workhorse Printers High
Speed Scanning Equipment
Toner Recycling Program
Managed Print
Service
Worldwide Service Network
Online Service Dispatch 24/7/365
Automated & Accurate Meter Capture
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Parts & Supply Histories
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International
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45 What Makes
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98% Uptime Guarantee
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Large Presence
Chico, '&&-2+TConcord, San Francisco, Londo2
24 x7 Helpdesk & Customer Support Support
Coverage in all major global markets
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46 24/7
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Unlike most sales organizations, the core DNA of our company was founded from 2 service technicians, and not from individuals with a background in sales. This has given our organization a profound perspective on our approach and best practices to support our clients.

Service Makes
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47 Installation Support
Service
Remote Distribution &
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Data Backup Service
Canon Smart Services are designed
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August 20, 2026
Aimee Beleu
Town of Paradise
5555 Skyway Rd,
Paradise, CA 95969
Re: MPC0084 Public Agency Clause Piggy Back Town of Paradise Dear Mrs. Beleu:

The intent of this correspondence is to provide visibility and documentation of the Butte County Managed Procurement Contract (MPC0084) and the subsequent Public Agency Clause (Piggy Back) language as noted on page 15 (included herein).

The Public Agency Clause (Piggy Back)
It is intended that any other public agency (i.e. city, county, district, public authority, municipality, or other political subdivision of California) located in the State of California shall have an option to participate in any award made as a result of open solicitation by Butte County. County shall incur no financial responsibility in connection with orders issued by another public agency. The public agency shall accept sole responsibility for placing orders or making payments to the Contractor.” Sincerely,
Mike Drakulic
Mike Drakulic
Director / VP Operations – North
2275 Springfield Dr. Ste. 140
Chico, CA. 95928
(530) 513-5183 main
(530) 228-0952 cell
50 General Services Michael Hodson, Director

2081 2nd Street T: 530.552.3500
Oroville, California 95965 F: 530.538.6760 buttecounty.net/generalservices March 1, 2023
Notice of Intent to Award
Request for Proposals (RFP) #50-23, Multi-Function Device Lease, Service & Maintenance of County Owned/Rented Desktop Printer/Scanners and As-Needed Short Term Rental, Service and Maintenance of Multi-Function Devices Thank you for submitting a proposal in response to RFP #50-23. We value competition and recognize the time and effort required to respond to a solicitation request. The evaluation committee has completed the scoring of all proposals and presentations. Based on the recommendations from the evaluation committee the intent to award contract is with:

Global Office, Inc.

You may, if you wish, obtain a debriefing of the scoring of your proposal. Please contact Syndee Howerton, Senior Contracts/Procurement Agent at 530-552-3492 or [email protected] by Friday, March 3, 2023. Please note that the debriefing will not compare submitted proposals, but will include a review of the scoring process and any other pertinent information we feel may enhance your opportunities on future solicitations.

Again, thank you for submitting your proposal. We look forward to hearing from your firm with the next solicitation opportunity.

Respectfully,
Syndee Howerton
Senior Contracts/Procurement Agent
51 General Services Michael Hodson, Director

2081 2nd Street T: 530.552.3500
Oroville, California 95965 F: 530.538.6760 buttecounty.net/generalservices March 1, 2023
Mike Drakulic
Global Office Inc.
1905 Notre Dame Blvd. Ste. 230
Chico, CA 95928
RE: Butte County RFP 50-23, Multi-Function Device Lease, Service & Maintenance of County Owned/Rented Desktop Printer/Scanners and As-Needed Short Term Rental, Service and Maintenance of Multi-Function Devices
Dear Mr. Drakulic
The County of Butte has completed its evaluation of all proposals submitted in response to Request for Proposal No. 50-23. We are pleased to announce, that after extensive discussion and consideration by the selection panel for the Multi-Function Device Lease, Service & Maintenance of County Owned/Rented Desktop Printer/Scanners and As-Needed Short Term Rental, Service and Maintenance of Multi-Function Devices, Global Office Inc. has been determined to be the most advantageous to the County.

We acknowledge and appreciate the time and effort devoted to the preparation of your proposal. It is our intention to begin drafting a contract and hope to present it for your review by March 7, 2023.

Please direct any inquiries regarding this award to me at 530-552-3492 or [email protected].

Sincerely,
Syndee Howerton
Senior Contracts/Procurement Agent
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https://
support.docusign.com/
https://support.docusign.com/guides/signer107
2275 Springfield Dr. Ste. 140 Chico, CA 95928 • Phone: (877) 287-5033 The words Lessee, you and your refer to Customer. The words Lessor, we, us and our refer to Global Office Inc.

CUSTOMER INFORMATION

FULL LEGAL NAME EQUIPMENT LOCATION (IF DIFFERENT)
Town of Paradise

STREET ADDRESS PHONE CITY STATE ZIP
5555 Skyway 530.872.6291
CITY STATE ZIP FAX FEDERAL TAX I.D. #
Paradise CA 95969

EQUIPMENT DESCRIPTION
MAKE/MODEL/ACCESSORIES SERIAL NO.
5qty Canon imageFORCE C5140 with accessories
4qty Canon imageFORCE C3126 with accessories
2qty Brother Workhorse HL-EX470 Laser Color Printer with accessories

CHECK HERE FOR MULTIPLE PLACEMENTS - SEE ATTACHED SCHEDULE “A”

TERM AND PAYMENT SCHEDULE
Months 60 Monthly Payment* $ 1,198.00 (The lease contract payment (“Payment”) period is monthly unless otherwise stated.) *plus applicable taxes

INSURANCE &
TAXES
You are required to provide and maintain insurance related to the Equipment, and to pay any property, use, and other taxes related to this Agreement or the Equipment (see paragraphs 2 and 4 on page 2 of this Agreement). If you are tax-exempt, you agree to furnish us with satisfactory evidence of your exemption.

UCC &

MISCELLANEOUS
You agree that we will file Uniform Commercial Code (“UCC”) documents and obtain credit bureau reports. You authorize us to sign any documents in connection with the Uniform Commercial Code on your behalf. You agree to pay a one-time fee, not to exceed $159.00 for the purpose of filing the UCC documents.

END OF LEASE OPTIONS
You will have the following options at the end of the original term, provided that no event of default under the Agreement has occurred and is continuing. To the extent that any purchase option indicates that the purchase price will be the "Fair Market Value" (or "FMV"), such term means the value of the Equipment in continued use. 1) Purchase all but not less than all the Equipment for the Fair Market Value per paragraph 1, 2) Renew the Agreement per paragraph 1, or 3) Return the Equipment per paragraph 3.

THIS IS A NONCANCELABLE / IRREVOCABLE AGREEMENT; THIS AGREEMENT CANNOT BE CANCELED OR TERMINATED.

CUSTOMER ACCEPTANCE
By signing below, you certify that you have reviewed and do agree to all terms and conditions of this Agreement on this page and on page 2 attached hereto.

Town of Paradise X
CUSTOMER (as referenced above) SIGNATURE TITLE DATED

ACCEPTANCE OF DELIVERY
The undersigned hereby certifies that: (i) all of the above-described equipment (the “Equipment”) has been delivered to the above-named customer (the “Customer”) at the address indicated above, (ii) the Equipment has been installed, is fully operational and in good condition, and is unconditionally accepted.

Town of Paradise X
CUSTOMER (as referenced above) SIGNATURE TITLE DATE OF DELIVERY

LESSOR ACCEPTANCE
Global Office Inc.

LESSOR SIGNATURE TITLE DATED
TERMS AND CONDITIONS (Continued on Page 2)

1. AGREEMENT: For business purposes only, you agree to lease from us the goods, together with all replacements, parts, repairs, additions, and accessions incorporated therein or attached thereto and any and all proceeds of the foregoing, including, without limitation, insurance recoveries (the "Equipment") and/or to finance certain licensed software and services (“Financed Items”, which are included in the word “Equipment” unless separately stated), all as described on page 1 of this Agreement, excluding equipment marked as not financed under this Agreement, as it may be supplemented from time to time. You agree to all of the terms and conditions contained in this Agreement and any supplement, which (with the acceptance certification) is the entire agreement regarding the Equipment ("Agreement") and which supersedes any purchase order or invoice. You authorize us to correct or insert missing Equipment identification information and to make corrections to your proper legal name and address. This Agreement becomes valid upon execution by us and will start on the date we pay the supplier.

Interim rent/due date adjustments will be in an amount equal to 1/30th of the Payment, multiplied by the number of days between the Agreement start date and the first Payment due date. Unless otherwise stated in an addendum hereto, this Agreement will renew for 12-month term(s) unless you send us written notice at least 90 days (before the end of any term) that you want to purchase or return the Equipment. All of the provisions of this Agreement shall continue to apply, including, without limitation, your obligations to remit Payments and other charges, until all of the Equipment is either returned to us or purchased by you. If any provision of this Agreement is declared unenforceable in any jurisdiction, the other provisions herein shall remain in full force and effect in that jurisdiction and all others. You understand and agree that we have no right, title or interest in intangible property or associated services such as periodic software licenses and prepaid database subscription rights (such intangible property “Software”) and you will comply throughout the term of this Agreement with any license and/or other agreement entered into with the supplier of the Software. 29904 Page 1 of 2 Rev. 04/11/2025
AGREEMENT NO.

APPLICATION NO.

Lease Agreement
108

2. RENT, TAXES AND FEES: You will pay the monthly Payment (as adjusted) when due, plus any applicable sales, use and property taxes. The base Payment will be adjusted proportionately upward or downward: (1) by up to 10% to accommodate changes in the actual Equipment cost; (2) if the shipping charges or taxes differ from the estimate given to you; and (3) to comply with the tax laws of the state in which the Equipment is located.

If we pay any taxes, insurance or other expenses that you owe hereunder, you agree to reimburse us when we request and to pay us a processing fee for each expense or charge we pay on your behalf. We may charge you for any filing fees required by the Uniform Commercial Code (UCC) or other laws, which fees vary state-to-state. By the date the first Payment is due, you agree to pay us an origination fee of $150, as shown on our invoice or addendum, to cover us for all closing costs. We will have the right to apply all sums, received from you, to any amounts due and owed to us under the terms of this Agreement. If for any reason your check is returned for nonpayment, you will pay us a bad check charge of $30 or, if less, the maximum charge allowed by law. We may make a profit on any fees, estimated tax payments and other charges paid under this Agreement.

3. MAINTENANCE AND LOCATION OF EQUIPMENT; SECURITY INTEREST: You agree to keep the Equipment: (1) in good repair, condition and working order, in compliance with applicable manufacturers’ and regulatory standards; (2) free and clear of all liens and claims; and (3) only at your address shown on page 1, and you agree not to move it unless we agree. As long as you have given us the written notice as required in paragraph 1 prior to the expiration or termination of this Agreement’s term, if you do not purchase the Equipment, you will return all but not less than all of the Equipment and all related manuals and use and maintenance records to a location we specify, at your expense, in retail re-saleable condition, full working order and complete repair. You are solely responsible for removing any data that may reside in the Equipment you return, including but not limited to hard drives, disk drives or any other form of memory. You grant us a security interest in the Equipment to secure all amounts you owe us under any agreement with us, and you authorize us to file a financing statement (UCC-1). You will not change your state of organization, headquarters or residence without providing prior written notice to us so that we may amend or file a new UCC-1. You will notify us within 30 days if your state of organization revokes or terminates your existence.

4. COLLATERAL PROTECTION; INSURANCE; INDEMNITY; LOSS OR DAMAGE: You agree to keep the Equipment fully insured against risk and loss, with us as lender’s loss payee, in an amount not less than the original cost until this Agreement is terminated. You also agree to obtain a general public liability insurance policy with such coverage and from such insurance carrier as shall be satisfactory to us and to include us as an additional insured on the policy. Your insurance policy(s) will provide for 10 days advance written notice to us of any modification or cancellation. You agree to provide us certificates or other evidence of insurance acceptable to us. If you fail to comply with this requirement within 30 days after the start of this Agreement, you agree to one of the following options, the selection of which is at our sole discretion: (1) we may obtain insurance covering our interest (and only our interest) in the Equipment for the Agreement term and renewals. Any insurance we obtain will not insure you against third party or liability claims and may be cancelled by us at any time. You may be required to pay us an additional amount each month for the insurance premium and an administrative fee. The cost may be more than the cost of obtaining your own insurance; or (2) we may charge you a monthly property damage surcharge of up to .0035 of the Equipment cost as a result of our credit risk and administrative and other costs, as would be further described on a letter from us to you. We may make a profit on this program. NOTHING IN THIS PARAGRAPH WILL RELIEVE YOU OF RESPONSIBILITY FOR LIABILITY INSURANCE ON THE EQUIPMENT. We are not responsible for, and you agree to hold us harmless and reimburse us for and to defend on our behalf against, any claim for any loss, expense, liability or injury caused by or in any way related to delivery, installation, possession, ownership, use, condition, inspection, removal, return or storage of the Equipment, although we reserve the right to participate in the defense and to select or approve defense counsel. You are responsible for the risk of loss or for any destruction of or damage to the Equipment.

You agree to promptly notify us in writing of any loss or damage. If the Equipment is destroyed and we have not otherwise agreed in writing, you will pay to us the unpaid balance of this Agreement, including any future rent to the end of the term plus the anticipated purchase price of the Equipment (both discounted at 3%). Any proceeds of insurance will be paid to us and credited, at our option, against any loss or damage. You authorize us to sign on your behalf and appoint us as your attorney-in-fact to endorse in your name any insurance drafts or checks issued due to loss or damage to the Equipment. All indemnities will survive the expiration or termination of this Agreement.

5. ASSIGNMENT: WE ARE THE OWNER OF THE EQUIPMENT. YOU HAVE NO RIGHT TO SELL, TRANSFER, ASSIGN OR SUBLEASE THE EQUIPMENT OR THIS AGREEMENT, without our prior written consent.

Without our prior written consent, you shall not reorganize or merge with any other entity or transfer all or a substantial part of your ownership interests or assets. You agree that we may sell or assign the Agreement without notice and the new Lessor will have the same rights that we have now and will not have to perform any of our obligations. You agree that the new Lessor will not be subject to any claims, defenses, or offsets that you may have against us.

6. DEFAULT AND REMEDIES: You will be in default if: (a) you do not pay any Payment or other sum due to us or any other person when due or if you fail to perform in accordance with the covenants, terms and conditions of this Agreement or any other agreement with us or any of our affiliates or any material agreement with any other lender, (b) you make or have made any false statement or misrepresentation to us, (c) you or any guarantor dies, dissolves or terminates existence, (d) there has been a material adverse change in your or any guarantor’s financial, business or operating condition, or (e) any guarantor defaults under any guaranty for this Agreement.

If any part of a Payment is more than 5 days late, you agree to pay a late charge of 10% of the Payment which is late or if less, the maximum charge allowed by law. If you are ever in default, at our option, we can terminate this Agreement and require that you pay the unpaid balance of this Agreement, including any future Payments to the end of the term plus the anticipated purchase price of the Equipment (both discounted at 3%). We may recover default interest on any unpaid amount at the rate of 12% per year. Concurrently and cumulatively, we may also use any or all of the remedies available to us under Articles 2A and 9 of the UCC and any other law, including requiring that you: (1) return the Equipment to us to a location we specify; and (2) immediately stop using any Financed Items. In addition, we will have the right, immediately and without notice or other action, to set-off against any of your liabilities to us any money, including depository account balances, owed by us to you, whether or not due. In the event of any dispute or enforcement of rights under this Agreement or any related agreement, you agree to pay our reasonable attorney's fees (including any incurred before or at trial, on appeal or in any other proceeding), actual court costs and any other collection costs, including any collection agency fee. If we have to take possession of the Equipment, you agree to pay the costs of repossession, moving, storage, repair and sale. The net proceeds of the sale of any Equipment will be credited against what you owe us under this Agreement. YOU AGREE THAT WE WILL NOT BE RESPONSIBLE TO PAY YOU ANY CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES FOR ANY DEFAULT, ACT OR OMISSION BY ANYONE.

Any delay or failure to enforce our rights under this Agreement will not prevent us from enforcing any rights at a later time. You agree that this Agreement is a "Finance Lease" as defined by Article 2A of the UCC and your rights and remedies are governed exclusively by this Agreement. You waive all rights under sections 2A-508 through 522 of the UCC. If interest is charged or collected in excess of the maximum lawful rate, we will not be subject to any penalties.

7. FAXED OR SCANNED DOCUMENTS, OR E-SIGNATURE, MISC.: This Agreement may be executed in counterparts. The executed counterpart which has our original signature and/or is in our possession shall constitute chattel paper as that term is defined in the UCC and shall constitute the original agreement for all purposes, including, without limitation: (i) any hearing, trial or proceeding with respect to this Lease; and (ii) any determination as to which version of this Agreement constitutes the single true original item of chattel paper under the UCC. If you manually or electronically sign and transmit this Agreement to us by facsimile or other electronic transmission, the transmitted copy shall be binding upon the parties. You agree that the facsimile or other similar electronic transmission of this Agreement manually signed by us, when attached to the facsimile or other electronic copy signed by you (manually or electronically), shall constitute the original agreement for all purposes. The parties further agree that, for purposes of executing this Agreement, and subject to our prior approval and at our sole discretion: (a) a document signed and transmitted by facsimile or other electronic transmission shall be treated as an original document; (b) the manual or electronic signature of any party on such document shall be considered as an original signature; (c) the document transmitted shall have the same effect as a counterpart thereof containing original signature; and (d) at our request, you, who executed this Lease and transmitted its signature by facsimile or other electronic transmission shall provide the counterpart of this Lease containing your original manual signature to us. No party may raise as a defense to the enforcement of this Agreement that a facsimile or other electronic transmission was used to transmit any signature of a party to this Lease. You agree to execute any further documents that we may request to carry out the intents and purposes of this Agreement. All notices shall be mailed or delivered by facsimile transmission or overnight courier to the respective parties at the addresses shown on this Agreement or such other address as a party may provide in writing from time to time. By providing any telephone number, now or in the future, for a cell phone or other wireless device, you are expressly consenting to receiving communications, regardless of their purpose, at that number, including, but not limited to, prerecorded or artificial voice message calls, text messages, and calls made by an automatic dialing system from us and our affiliates and agents. These calls and messages may incur access fees from your provider. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. What this means to you: when you open an account, we will ask for your name, address and other information that will allow us to identify you. We may also ask to see identifying documents. You authorize us to furnish your information, including credit application, payment history and account information, to credit reporting agencies and our assignees, purchasers or investors.

8. WARRANTY DISCLAIMERS: YOU AGREE THAT YOU HAVE SELECTED THE SUPPLIER AND EACH ITEM OF EQUIPMENT BASED UPON YOUR OWN JUDGMENT AND YOU DISCLAIM ANY RELIANCE UPON ANY STATEMENTS OR REPRESENTATIONS MADE BY US. WE DO NOT TAKE RESPONSIBILITY FOR THE INSTALLATION OR PERFORMANCE OF THE EQUIPMENT. THE SUPPLIER IS NOT AN AGENT OF OURS AND WE ARE NOT AN AGENT OF THE SUPPLIER, AND NOTHING THE SUPPLIER STATES OR DOES CAN AFFECT YOUR OBLIGATION UNDER THIS AGREEMENT. YOU WILL CONTINUE TO MAKE

ALL PAYMENTS UNDER THIS AGREEMENT REGARDLESS OF ANY CLAIM OR COMPLAINT AGAINST ANY SUPPLIER, LICENSOR OR MANUFACTURER, AND ANY FAILURE OF A SERVICE PROVIDER TO PROVIDE SERVICES WILL NOT EXCUSE YOUR OBLIGATIONS TO US UNDER THIS AGREEMENT. THIS AGREEMENT IS A NET AGREEMENT, YOU HAVE AN UNCONDITIONAL OBLIGATION TO MAKE ALL PAYMENTS AND YOU CANNOT WITHHOLD, SET OFF OR REDUCE SUCH PAYMENTS FOR ANY REASON. WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, OF, AND TAKE ABSOLUTELY NO

RESPONSIBILITY FOR, MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, CONDITION, QUALITY, ADEQUACY, TITLE, DATA ACCURACY, SYSTEM INTEGRATION, FUNCTION, DEFECTS, OR ANY OTHER ISSUE IN REGARD TO THE EQUIPMENT, ANY ASSOCIATED SOFTWARE AND ANY FINANCED ITEMS.

9. LAW, JURY WAIVER: Agreements, promises and commitments made by Lessor, concerning loans and other credit extensions must be in writing, express consideration and be signed by Lessor to be enforceable.

This Agreement may be modified only by written agreement and not by course of performance. This Agreement will be governed by and construed in accordance with the law of the state of the principal place of business of Lessor or its assignee. You consent to jurisdiction and venue of any state or federal court in the state the Lessor or its assignee has its principal place of business and waive the defense of inconvenient forum. For any action arising out of or relating to this Agreement or the Equipment, YOU AND WE WAIVE ALL RIGHTS TO A TRIAL BY JURY. 29904 Page 2 of 2 Rev. 04/11/2025
109
2275 Springfield Dr. Ste. 140
Chico, CA 95928
530.513.5183
"Schedule A": Town of Paradise
Equipment Needed Location Address City State Zip
Canon C5140 Town Hall - Clerk 5555 Skyway Paradise CA 95969 Canon C5140 Town Hall - Finance 5555 Skyway Paradise CA 95969 Canon C5140 Town Hall - Engineering 5555 Skyway Paradise CA 95969 Brother HL-EX470W Town Hall - Housing 5555 Skyway Paradise CA 95969 Brother HL-EX470W Town Hall - Town Manager 5555 Skyway Paradise CA 95969 Canon C3126 Police Department - Lobby 5595 Black Olive Dr Paradise CA 95969 Canon C3126 Police Department - Admin 5595 Black Olive Dr Paradise CA 95969 Canon C3126 Fire Department 767 Birch St. Paradise CA 95969 Canon C3126 Animal Shelter 925 American Way Paradise CA 95969 Canon C5140 Building Resiliency Center - Front 6295 Skyway Paradise CA 95969 Canon C5140 Building Resiliency Center - Back 6295 Skyway Paradise CA 95969 Global Office, Inc Customer
By: By:
authorized signature authorized signature
Name: Name:
print name print name
Date: Date:

Title Title
Additional Equipment/Product and/or Multiple location Addendum 110
NOTE: CAPITALIZED TERMS IN THIS DOCUMENT ARE DEFINED AS IN THE AGREEMENT, UNLESS SPECIFICALLY STATED OTHERWISE. 11557 REV 10/21

STATE AND LOCAL GOVERNMENT

ADDENDUM
AGREEMENT #
Addendum to Agreement # and any future supplements/schedules thereto, between Town of Paradise, as Customer and Global Office Inc, as Lessor. The words “you” and “your” refer to Customer. The words “we” and “us” refer to Lessor.

1. The parties wish to amend the above-referenced Agreement by adding the following language:

REPRESENTATIONS AND WARRANTIES OF CUSTOMER: You hereby represent and warrant to us that: (i) you have been duly authorized under the Constitution and laws of the applicable jurisdiction and by a resolution or other authority of your governing body to execute and deliver this Agreement and to carry out your obligations hereunder; (ii) all legal requirements have been met, and procedures have been followed, including public bidding, in order to ensure the enforceability of this Agreement; (iii) this Agreement is in compliance with all laws applicable to you, including any debt limitations or limitations on interest rates or finance charges; (iv) the Equipment will be used by you only for essential governmental or proprietary functions of you consistent with the scope of your authority, will not be used in a trade or business of any person or entity, by the federal government or for any personal, family or household use, and your need for the Equipment is not expected to diminish during the term of this Agreement; (v) you have funds available to pay Payments until the end of your current appropriation period, and you intend to request funds to make Payments in each appropriation period, from now until the end of the term of this Agreement; and (vi) your exact legal name is as set forth on page one of this Agreement.

INITIAL TERM AND RENEWAL TERM(S): The term of the Agreement consists of an initial term beginning on the date we pay Supplier and ending at the end of your fiscal year in which we pay Supplier, and a series of renewal terms, each co-extensive with your fiscal year. Except to the extent required by applicable law, if you do not exercise your right to terminate the Agreement under the Non-Appropriation or Renewal paragraph as of the end of any fiscal year, the Agreement will be deemed automatically renewed for the next succeeding renewal term.

An election by you to terminate the Agreement under the Non-Appropriation or Renewal paragraph is not a default.

Notwithstanding anything to the contrary set forth in the Agreement, if we cancel the Agreement following a default by you, we may require that you pay the unpaid balance of Payments under the Agreement through the end of your then-current fiscal year, but we may not require you to pay future Payments due beyond that fiscal year or the anticipated residual value of the Equipment. If we sell the Equipment following a default by you, you will not be responsible for a deficiency, except to the extent of our costs of repossession, moving, storage, repair and sale, and our attorneys’ fees and costs.

NON-APPROPRIATION OR RENEWAL: If either sufficient funds are not appropriated to make Payments or any other amounts due under this Agreement or (to the extent required by applicable law) this Agreement is not renewed either automatically or by mutual ratification, this Agreement shall terminate and you shall not be obligated to make Payments under this Agreement beyond the then-current fiscal year for which funds have been appropriated. Upon such an event, you shall, no later than the end of the fiscal year for which Payments have been appropriated or the term of this Agreement has been renewed, deliver possession of the Equipment to us. If you fail to deliver possession of the Equipment to us, the termination shall nevertheless be effective but you shall be responsible, to the extent permitted by law and legally available funds, for the payment of damages in an amount equal to the portion of Payments thereafter coming due that is attributable to the number of days after the termination during which you fail to deliver possession and for any other loss suffered by us as a result of your failure to deliver possession as required. You shall notify us in writing within seven days after (i) your failure to appropriate funds sufficient for the payment of the Payments or (ii) to the extent required by applicable law, (a) this Agreement is not renewed or (b) this Agreement is renewed by you (in which event this Agreement shall be mutually ratified and renewed), provided that your failure to give any such notice under clause (i) or (ii) of this sentence shall not operate to extend this Agreement or result in any liability to you.

SUPPLEMENTS; SEPARATE FINANCINGS: To the extent applicable, in the event that the parties hereafter mutually agree to execute and deliver any supplement or schedule (“Supplement”) under the above-referenced Agreement, such Supplement, as it incorporates the terms and conditions of the Agreement, shall be a separate financing distinct from the Agreement or other Supplements thereto. Without limiting the foregoing, upon the occurrence of an event of default or a non-appropriation event with respect to the Agreement or a Supplement (each, a separate “Contract”), as applicable, we shall have the rights and remedies specified in the Agreement with respect to the Equipment financed and the Payments payable under such Contract, and we shall have no rights or remedies with respect to Equipment financed or Payments payable under any other Contract unless an event of default or nonappropriation event has also occurred under such other Contract.

2. The parties wish to amend the above-referenced Agreement by restating certain language as follows:

Any provision in the Agreement stating that you shall indemnify and hold us harmless is hereby amended and restated as follows: “You shall not be required to indemnify or hold us harmless against liabilities arising from this Agreement. However, as between you and us, and to the extent permitted by law and legally available funds, you are responsible for and shall bear the risk of loss for, shall pay directly, and shall defend against any and all claims, liabilities, proceedings, actions, expenses, damages or losses arising under or related to the Equipment, including, but not limited to, the possession, ownership, lease, use or operation thereof, except that you shall not bear the risk of loss of, nor pay for, any claims, liabilities, proceedings, actions, expenses, damages or losses that arise directly from events occurring after you have surrendered possession of the Equipment in accordance with the terms of this Agreement to us or that arise directly from our gross negligence or willful misconduct.” Any provision in the Agreement stating that the Agreement is governed by a particular state’s laws and you consent to such jurisdiction and venue is hereby amended and restated as follows: “This Agreement will be governed by and construed in accordance with the laws of the state where you are located. You consent to jurisdiction and venue of any state or federal court in such state and waive the defense of inconvenient forum.”
Any provision in the Agreement stating this Agreement supersedes any invoice and/or purchase order is hereby amended and restated as follows: “You agree that the terms and conditions contained in this Agreement, which, with the acceptance certification, is the entire agreement between you and us regarding the Equipment and which supersedes any purchase order, invoice, request for proposal, response or other related document.”
Any provision in the Agreement stating that this Agreement shall automatically renew unless the Equipment is purchased, returned or a notice requirement is satisfied is hereby amended and restated as follows: “Unless the purchase option is $1.00 or $101.00, you agree to send us written notice at least 30 days before the end of the final renewal term that you want to purchase or return the Equipment, and you agree to so purchase or return the Equipment not later than the end of the final renewal term. If you fail to so purchase or return the Equipment at or before the end of the final renewal term, you shall be a holdover tenant with respect to this Agreement and the Equipment, and this Agreement shall renew on a month-to-month basis under the same terms hereof until the Equipment has been purchased or returned.” Any provision in the Agreement stating that we may assign this Agreement is hereby amended and restated as follows: “We may sell, assign, or transfer this Agreement without notice to or consent from you, and you waive any right you may have to such notice or consent.”
Any provision in the Agreement stating that you grant us a security interest in the Equipment to secure all amounts owed to us under any agreement is hereby amended and restated as follows: “To the extent permitted by law, you grant us a security interest in the Equipment to secure all amounts you owe us under this Agreement and any supplements hereto. You authorize and ratify our filing of any financing statement(s) and the naming of us on any vehicle title(s) to show our interest.”
Any provision in the Agreement stating that a default by you under any agreement with our affiliates or other lenders shall be an event of default under the Agreement 111
NOTE: CAPITALIZED TERMS IN THIS DOCUMENT ARE DEFINED AS IN THE AGREEMENT, UNLESS SPECIFICALLY STATED OTHERWISE. 11557 REV 10/21
is hereby amended and restated as follows: “You will be in default if: (i) you do not pay any Payment or other sum due to us under this Agreement when due or you fail to perform in accordance with the covenants, terms and conditions of this Agreement; (ii) you make or have made any false statement or misrepresentation to us; or (iii) you dissolve, liquidate, terminate your existence or are in bankruptcy.

Any provision in the Agreement stating that you shall pay our attorneys’ fees is hereby amended and restated as follows: “In the event of any dispute or enforcement of rights under this Agreement or any related agreement, you agree to pay, to the extent permitted by law and to the extent of legally available funds, our reasonable attorneys’ fees (including any incurred before or at trial, on appeal or in any other proceeding), actual court costs and any other collection costs, including any collection agency fee.” Any provision in the Agreement requiring you to pay amounts due under the Agreement upon the occurrence of a default, failure to appropriate funds or failure to renew the Agreement is hereby amended to limit such requirement to the extent permitted by law and legally available funds.

3. If your end-of-term option is the purchase of all Equipment for $1.00 or $101.00, the following applies: Unless otherwise required by law, upon your acceptance of the Equipment, title to the Equipment shall be in your name, subject to our interest under this Agreement.

4. With respect to any “Financed Items,” the following provisions shall be applicable to such Financed Items:

This Addendum concerns the granting to you of certain software and/or software license(s) (“Licensed Software”), the purchase by you of certain software components, including but not limited to, software maintenance and/or support (“Products”) and/or the purchase by you of certain implementation, integration, training, technical consulting and/or professional services in connection with software (“Services”) (collectively, the “Financed Items”) from software licensor(s) and/or supplier(s) (collectively, the “Supplier”), all as further described in the agreement(s) between you and Supplier (collectively, the “Product Agreement”). For essential governmental purposes only, you have requested and we have agreed that instead of you paying the fees pursuant to the Product Agreement to Supplier for the Financed Items, we will satisfy your obligation to pay such fees to Supplier, and in consideration thereof, you shall repay the sums advanced by us to Supplier by promptly making certain installment payments to us, which are included in the Payments set forth in the Agreement.

To the extent permitted by law, you grant us a security interest in the license(s), including without limitation, all of your rights in the Licensed Software granted thereunder, the Products, all rights to payment under the Product Agreement, the Financed Items, and all proceeds of the foregoing to secure all amounts you owe us under this Agreement. You authorize and ratify our filing of any financing statement(s) to show our interest.

Ownership of any Licensed Software shall remain with Supplier thereof. All Financed Items shall be provided by a Supplier unrelated to us, and your rights with respect to such Financed Items shall be governed by the Product Agreement between you and Supplier, which shall not be affected by this Agreement. IN NO EVENT SHALL WE

HAVE ANY OBLIGATION TO PROVIDE ANY FINANCED ITEMS, AND ANY

FAILURE OF SUPPLIER TO PROVIDE ANY FINANCED ITEMS SHALL NOT EXCUSE YOUR OBLIGATIONS TO US IN ANY WAY. YOU HAVE SELECTED SUPPLIER AND THE FINANCED ITEMS BASED UPON YOUR OWN JUDGMENT.

WE DO NOT TAKE RESPONSIBILITY FOR THE INSTALLATION OR
PERFORMANCE OF THE FINANCED ITEMS. SUPPLIER IS NOT AN AGENT OF

OURS AND WE ARE NOT AN AGENT OF SUPPLIER, AND NOTHING SUPPLIER STATES OR DOES CAN AFFECT YOUR OBLIGATIONS HEREUNDER. YOU

WILL MAKE ALL PAYMENTS UNDER THIS AGREEMENT REGARDLESS OF

ANY CLAIM OR COMPLAINT AGAINST ANY SUPPLIER, LICENSOR OR

MANUFACTURER, AND ANY FAILURE OF A SERVICE PROVIDER TO PROVIDE

SERVICES WILL NOT EXCUSE YOUR OBLIGATIONS TO US UNDER THIS AGREEMENT. WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AS TO

THE FINANCED ITEMS COVERED BY THE PRODUCT AGREEMENT AND TAKE

ABSOLUTELY NO RESPONSIBILITY FOR MERCHANTABILITY OR FITNESS

FOR ANY PARTICULAR PURPOSE OR AS TO ANY PATENT, TRADEMARK OR

COPYRIGHT INFRINGEMENT, CONDITION, QUALITY, ADEQUACY, TITLE,

DATA ACCURACY, SYSTEM INTEGRATION, FUNCTION, DEFECTS OR ANY OTHER ISSUE IN REGARD TO THE FINANCED ITEMS. YOU HEREBY WAIVE

ANY CLAIM (INCLUDING ANY CLAIM BASED ON STRICT LIABILITY OR

ABSOLUTE LIABILITY IN TORT) THAT YOU MAY HAVE AGAINST US FOR ANY

LOSS, DAMAGE (INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS, LOSS

OF DATA OR ANY OTHER DAMAGES) OR EXPENSE CAUSED BY THE

FINANCED ITEMS COVERED BY THE PRODUCT AGREEMENT OR A

TERMINATION OF THE FINANCED ITEMS PURSUANT TO AN EVENT OF

DEFAULT, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE, LOSS, EXPENSE OR COST.

The following shall be additional events of default under the Agreement: (i) you fail to perform in accordance with the covenants, terms and conditions of the Product Agreement, or (ii) the Product Agreement is terminated, suspended, materially restricted or limited.

The following shall be additional remedies we have for your default under the Agreement: We shall have the right to: (a) cause the termination of the Financed Items and you irrevocably consent to such termination of the Financed Items by Supplier; and (b) require you to immediately stop using the Financed Items (regardless of whether you are in default under the Product Agreement) and you shall, at our option, either deliver to us a certification executed by a duly authorized officer certifying that you have ceased use of the Financed Items or deliver the Financed Items to a location designated by us. In the event you are entitled to transfer the right to use the Financed Items to any third party, you hereby agree to transfer any such right to use the Financed Items to any third party selected by us and acknowledge that you shall have no right to fees payable by any third party in connection with such transfer. However, we shall not be required to mitigate our damages caused by a default by transferring any Financed Items to a third party.

By signing this Addendum, Customer acknowledges the applicable changes noted above are incorporated by reference into the Agreement. In all other respects, the terms and conditions of the Agreement remain in full force and effect and remain binding on Customer. In the event of any conflict between the terms and conditions of the Agreement and this Addendum, the terms and conditions of this Addendum shall control. Customer has caused this Addendum to be executed by its duly authorized officer as of the date below.

Global Office Inc. Town of Paradise
Lessor Customer

X
Signature Signature

Title Date Title Date
112
NOTE: CAPITALIZED TERMS IN THIS DOCUMENT ARE DEFINED AS IN THE AGREEMENT, UNLESS SPECIFICALLY STATED OTHERWISE.

A595 REV 10/19

CALIFORNIA JUDICIAL

REFERENCE ADDENDUM
AGREEMENT #

Addendum to Agreement # and any future supplements/schedules thereto, between Town of Paradise, as Customer and Global Office Inc, as Lessor/Secured Party (“Agreement”). The words “you” and “your” refer to Customer. The words “we,” “us” and “our” refer to Lessor/Secured Party.

The parties wish to amend the above-referenced Agreement by adding the following language:

1. Any and all disputes, claims and controversies arising out of, connected with or relating to the Agreement or the transactions contemplated thereby (individually, a "Dispute") that are brought before a forum in which pre-dispute waivers of the right to trial by jury are invalid under applicable law shall be subject to the terms contained in this Addendum in lieu of the jury trial waiver otherwise provided in the Agreement. Disputes may include, without limitation, tort claims, counterclaims, claims brought as class actions, claims arising from schedules, supplements, exhibits or other documents to the Agreement executed in the future, disputes as to whether a matter is subject to judicial reference, or claims concerning any aspect of the past, present or future relationships arising out of or connected with the Agreement.

2. Any and all Disputes shall be heard by a referee and resolved by judicial reference pursuant to California Code of Civil Procedure (“CCCP”) §§ 638 et seq. The referee shall be a retired California state court judge or an attorney licensed to practice law in the State of California with at least 10 years' experience practicing commercial law. The parties shall not seek to appoint a referee that may be disqualified pursuant to CCCP §641 or 641.2 without the prior written consent of all parties. If the parties are unable to agree upon a referee within 10 calendar days after one party serves a written notice of intent for judicial reference upon the other parties, then the referee will be selected by the court in accordance with CCCP § 640(b).

3. The referee shall render a written statement of decision and shall conduct the proceedings in accordance with the CCCP, the Rules of Court, and the California Evidence Code, except as otherwise specifically agreed by the parties and approved by the referee. The referee's statement of decision shall set forth findings of fact and conclusions of law. The decision of the referee shall be entered as a judgment in the court in accordance with the provisions of CCCP §§644 and 645.

The decision of the referee shall be appealable to the same extent and in the same manner that such decision would be appealable if rendered by a judge of the superior court.

4. Notwithstanding the preceding agreement to submit Disputes to a judicial referee, the parties preserve, without diminution, certain rights and remedies at law or equity and under the Agreement that such parties may employ or exercise freely, either alone or in conjunction with or during a Dispute. Each party shall have and hereby reserves the right to proceed in any court of proper jurisdiction or by self-help to exercise or prosecute the following remedies, as applicable: (A) all rights to foreclose against any real or personal property or other security by exercising a power of sale granted in the Agreement or under applicable law or by judicial foreclosure and sale, including a proceeding to confirm the sale, (B) all rights of self-help including peaceful occupation of property and collection of rents, setoff, and peaceful possession of property, (C) obtaining provisional or ancillary remedies including injunctive relief, sequestration, garnishment, attachment, appointment of receiver and in filing an involuntary bankruptcy proceeding, and (D) when applicable, a judgment by confession of judgment. Preservation of these remedies does not limit the power of a judicial referee to grant similar remedies that may be requested by a party in a Dispute. No provision in the Agreement regarding submission to jurisdiction and/or venue in any court is intended or shall be construed to be in derogation of the provisions in this Addendum for judicial reference of any Dispute. The parties do not waive any applicable federal or state substantive law except as provided herein.

5. If a Dispute includes multiple claims, some of which are found not subject to this Addendum, the parties shall stay the proceedings of the claims not subject to this Addendum until all other claims are resolved in accordance with this Addendum. If there are Disputes by or against multiple parties, some of which are not subject to this Addendum, the parties shall sever the Disputes subject to this Addendum and resolve them in accordance with this Addendum.

6. During the pendency of any Dispute that is submitted to judicial reference in accordance with this Addendum, each of the parties to such Dispute shall bear equal shares of the fees charged and costs incurred by the referee in performing the services described in this Addendum. The compensation of the referee shall not exceed the prevailing rate for like services. The prevailing party shall be entitled to reasonable court costs and legal fees, including customary attorneys’ fees, expert witness fees, paralegal fees, the fees of the referee and other reasonable costs and disbursements charged to the party by its counsel, in such amount as is determined by the referee.

7. In the event of any challenge to the legality or enforceability of this Addendum, the prevailing party shall be entitled to recover the costs and expenses from the non-prevailing party, including reasonable attorneys' fees, incurred by it in connection therewith.

8. THIS ADDENDUM CONSTITUTES A "REFERENCE AGREEMENT" BETWEEN THE PARTIES WITHIN THE MEANING OF AND FOR PURPOSES OF CCCP § 638.

By signing this Addendum, Customer acknowledges the above changes to the Agreement and authorizes Lessor/Secured Party to make such changes. In the event of any conflict between this Addendum and the Agreement, this Addendum shall prevail. In all other respects, the terms and conditions of the Agreement remain in full force and effect and remain binding on Customer. This Addendum may be executed in multiple counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute one and the same agreement.

Global Office Inc Town of Paradise
Lessor/Secured Party Customer
X
Signature Signature

Title Date Title Date
113
City: County:

State: Zip:

Contact: FAX:

Phone:

Email:

N
CLR
Images
Incl
CLR
Overage
CPC
Base
Charge
1 0.0590 $0.00
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
Special EMA Instructions:

Signature
Signature
2275 Springfield Dr. Suite 140 Chico, CA 95928
Pg. 1 of 2

$0.00
Police Department - Lobby
Police Department - Admin
Fire Department
(plus tax)
- -
$0.00

Canon C3126
START DATE:

END DATE:

Location
Town Hall - Clerk
Town Hall - Finance
Town Hall - Engineering
Town Hall - Housing
Finance
Phone:

Email:

Paradise
9/1/2026
9/1/2031
Make & Model
County:

Zip:

FAX:

Canon C5140
Canon C5140
Canon C5140
Brother HL-EX470W
Multiple Locations
CA
Town of Paradise
5555 Skyway Road
BILL TO:

Town of Paradise
530.872.6291
95969
Address:
530.872.6291
[email protected]
Luis Marquez
530.872.6291
[email protected]

EQUIPMENT MAINTENANCE DETAILS
Address:
[email protected]
CLR Rate BW
Overage Charge
BW
Images
Incl
Equip ID BW Rate

0.0098 0.0590 0.0098
Animal Shelter
Building Resiliency Center - Front
Building Resiliency Center - Back

Canon C3126
Canon C3126
Canon C3126
Canon C5140
Canon C5140
Monthly
Monthly
All machines to share same rates.

Total Images Included

Billy Hansen
Global Office Inc Date
Print Name
Equipment Maintenance Agreement
Date
Company Name:

Department:

City:

State:

Contact:

CUSTOMER
Base Frequency:

Overage Frequency:

CUSTOMER ACCEPTANCE
Company Name:

Department:

SHIP TO:

Edgar Abarca
Paradise
CA
Luis Marquez
95969
Contact Name:

Phone Number:

Email Address:

Service Tech:

Meter Contact Information
Tax / Fees / Misc
Total
Serial
Town Hall - Town Manager Brother HL-EX470W
114
Initial
Pg. 2 of 2
Limitations: Global will not be responsible for any consequental or incidental damages resulting from the use or service of the equipment. Such damages incude loss of revenue, downtime cost and loss of use of equipment.

Breach: If the customer fails to pay in a timely manner for services, Global can withhold service and supplies for the equipment covered under this agreement. Invoices are payable upon receipt, terms are net. All accounts which go beyond 30 days, will be charged a late fee equal to 1.5% of the outstanding balance. Customer shall be responsible for all costs incurred as a result of any collection activity required to satisfy all outstanding balances.

This Maintenance Agreement is entered into between you the customer, and Global Office, Inc. Subject to the terms and conditions set forth in this agreement and on the front page of this document, the parties agree as follows:

Term: This Agreement shall become effective on the date of delivery of the equipment and unless sooner terminated as provided in this agreement, shall remain in full force for an initial term as defined on page 1 of this agreement. Annual plans are for a 12-month period or the specified number of copies, whichever occurs first. All plans are subject to a minimum 5% annual increase.

Global Office, Inc Responsibilities: During the term of the Equipment Maintenance Agreement (EMA), Global Office Inc. (Global) will provide on-site service and repair (including parts and labor) preventative maintenance as required and all supplies excluding staples and paper (for supply inclusive contracts) for the equipment listed on the front of this document or subsequent amendment or equipment schedule.

For the term following the date of original installation, or purchase of EMA, Global guarantees the copier to operate at 98% uptime. The uptime is calculated per quarter on 600 working hours (8:00 AM - 5:00 PM). Customer will be reimbursed for the time the copier is out of service in excess of 2% of normal working hours per quarter (12 hours). The reimbursement will be determined in increments of 9 working hours and to be settled quarterly.

Exclusions: This service agreement shall not apply to services or repairs made necessary due to customer neglect, damage caused by the relocation of equipment without prior notification, service performed by NON-Global employees, or any damage caused by natural disasters or other than normal equipment wear and tear. A monthly fee of $5 per system will be charged to cover shipping cost's related to the shipping of toner for supply inclusive contracts.

Toner-Excess Usage: This maintenance agreement includes toner based on the manufacturers specifications. Customers who use excess toner may be charged for an additional usage fee.

After hours or non-contract charges: An hourly rate for non-contract customers is $150 per hour with a two-hour minimum. After hours service (after 5pm) can be provided for contract customers at the non-contract rate. All chargeable service calls will be billed $50 travel time. Global will provide service to non-EMA customers on a time and material basis.

Connecting and Networking devices: Global Office will cover and support connecting your new device to your network, support and train your designated employee to perform driver installation, setup scan and network settings, and perform training for end users. A 3% Standard Support Fee will be billed monthly to cover access to our remote help desk team for ongoing support related to any printer or device issues. This fee ensures you can reach out for assistance with troubleshooting, driver updates, configuration support, and other printer-related matters.

Meters: Meters will be read automatically utilizing Printanista and imageWARE Remote. Devices unable to collect meters using automated sources listed will require a $10 per month/device fee to be charged on maintenance agreement Global guarantees a 4 hour average response time during normal working business hours. If Global cannot maintain the equipment to its performance specifications, Global will replace the equipment with a comparable model at no additional charge to the Customer.

Termination: This maintenance agreement may be cancelled by either the customer or Global upon 30 days written notice. Customers termination of a maintenance agreement prior to the expiration date will be billed in accordance with the terms in effect on the termination date. Termination will be subject to the monthly minimum coverage through the termination month and the customer will be billed an early termination charge based on the number of full months remaining on the maintenance agreement.

Automatic Renewal: Upon expiration of the initial Term, this Agreement shall be automatically extended for month-to-month terms unless thirty days (30) prior to the expiration of the initial Term, or any extended term, a party hereto gives written notice to the other party of its termination of this Agreement as of such expiration date.

Equipment Maintenance Agreement - Terms and Conditions
115
imageFORCE C5140
Product Description Space And Power Requirements
• Print/Copy Speed: up to 40 ppm (BW/Color, Letter)
• Scan Speed: up to 270 ipm (300 dpi) (BW/Color, Duplex) • Print up to 12" x 18"
• Includes two 550-sheet paper cassettes
• Standard security feature set, including Trellix Embedded Control and Verify System
at Startup with Auto Recovery
兟Total Dimensions (W x D x H): 45.75" x 28.43" x 46.77" 兟Total Installation Space (W x D x H): 66.61" x 42.24" x

46.77"
兟Main Unit Power Requirements: 120V/12A
兟Main Unit Plug: NEMA 5-15P
Product name Net component size
W D H
inch inch inch
Additional
Power
Supply
Plug
Image
imageFORCE
C5140 24.41 28.43 36.89
Buffer Pass Unit-R1 - - - None
Booklet Finisher-A2
with Tri-Fold 21.14 24.53 43.11 None
Cassette Feeding
Unit-AY1 24.41 27.48 9.88 None
2/3 Hole Puncher
Unit-A1 - - - None
Total 45.75 28.43 46.77
Dimensions shown for each accessory are its net size. The total dimensions shown include spacing and accessory overlap.
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116
imageFORCE C5140
Product Description Space And Power Requirements
• Print/Copy Speed: up to 40 ppm (BW/Color, Letter)
• Scan Speed: up to 270 ipm (300 dpi) (BW/Color, Duplex) • Print up to 12" x 18"
• Includes two 550-sheet paper cassettes
• Standard security feature set, including Trellix Embedded Control and Verify System
at Startup with Auto Recovery
兟Total Dimensions (W x D x H): 33.46" x 49.09" x 46.77" 兟Total Installation Space (W x D x H): 41.34" x 28.43" x

46.77"
兟Main Unit Power Requirements: 120V/12A
兟Main Unit Plug: NEMA 5-15P
Product name Net component size
W D H
inch inch inch
Additional
Power
Supply
Plug
Image
imageFORCE
C5140 24.41 28.43 36.89
Cassette Feeding
Unit-AY1 24.41 27.48 9.88 None
Inner Finisher-N1 18.46 20.67 8.62 None
Inner 2/3 Hole
Puncher-D1 7.09 21.18 7.99 None
Total 33.46 49.09 46.77
Dimensions shown for each accessory are its net size. The total dimensions shown include spacing and accessory overlap.
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117
imageFORCE C3126
Product Description Space And Power Requirements
• Print/Copy Speed: up to 26 ppm (BW/Color, Letter)
• Scan Speed: up to 270 ipm (300 dpi) (BW/Color, Duplex) • Print up to 12" x 18"
• Includes two 550-sheet paper cassettes
• Standard security feature set, including Trellix Embedded Control and Verify System
at Startup with Auto Recovery
兟Total Dimensions (W x D x H): 22.24" x 29.33" x 45.08" 兟Total Installation Space (W x D x H): 38.50" x 29.33" x

45.08"
兟Main Unit Power Requirements: 120V/12A
兟Main Unit Plug: NEMA 5-15P
Product name Net component size
W D H
inch inch inch
Additional
Power
Supply
Plug
Image
imageFORCE
C3126 22.24 29.33 35.31
Cassette Feeding
Unit-BB1 22.24 27.09 9.76
1st Copy Tray KitC1 16.61 19.09 3.07 None
Total 22.24 29.33 45.08
Dimensions shown for each accessory are its net size. The total dimensions shown include spacing and accessory overlap.
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Proposal
Prepared
For
Presented to Presented by
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Business Offerings
& Solutions
Copiers &
Multifunction
Devices
Canon Multifunction Copiers
Canon Color Copiers
Canon Black & White Copiers
Canon Large Format Printers
Brother Workhorse Printers High
Speed Scanning Equipment
Toner Recycling Program
Managed Print
Service
Worldwide Service Network
Online Service Dispatch 24/7/365
Automated & Accurate Meter Capture
Automatic Printer Monitoring Service
Parts & Supply Histories
Fleet Refresh Programs
International
Services
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What Makes
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Service Makes
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Installation Support
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Canon Smart Services are designed
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For inquiries,
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www.reallygreatsite.com
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125
2275 Springfield Dr. Ste. 140 Chico, CA 95928 • Phone: (877) 287-5033 The words Lessee, you and your refer to Customer. The words Lessor, we, us and our refer to Global Office Inc.

CUSTOMER INFORMATION

FULL LEGAL NAME EQUIPMENT LOCATION (IF DIFFERENT)
Town of Paradise

STREET ADDRESS PHONE CITY STATE ZIP
5555 Skyway 530.872.6291
CITY STATE ZIP FAX FEDERAL TAX I.D. #
Paradise CA 95969

EQUIPMENT DESCRIPTION
MAKE/MODEL/ACCESSORIES SERIAL NO.
2qty Canon imageFORCE C5150 with accessories
3qty Canon imageFORCE C5140 with accessories
4qty Canon imageFORCE C3126 with accessories
2qty Brother Workhorse HL-EX470 Laser Color Printer with accessories

CHECK HERE FOR MULTIPLE PLACEMENTS - SEE ATTACHED SCHEDULE “A”

TERM AND PAYMENT SCHEDULE
Months 60 Monthly Payment* $ 1,244.00 (The lease contract payment (“Payment”) period is monthly unless otherwise stated.) *plus applicable taxes

INSURANCE &
TAXES
You are required to provide and maintain insurance related to the Equipment, and to pay any property, use, and other taxes related to this Agreement or the Equipment (see paragraphs 2 and 4 on page 2 of this Agreement). If you are tax-exempt, you agree to furnish us with satisfactory evidence of your exemption.

UCC &

MISCELLANEOUS
You agree that we will file Uniform Commercial Code (“UCC”) documents and obtain credit bureau reports. You authorize us to sign any documents in connection with the Uniform Commercial Code on your behalf. You agree to pay a one-time fee, not to exceed $159.00 for the purpose of filing the UCC documents.

END OF LEASE OPTIONS
You will have the following options at the end of the original term, provided that no event of default under the Agreement has occurred and is continuing. To the extent that any purchase option indicates that the purchase price will be the "Fair Market Value" (or "FMV"), such term means the value of the Equipment in continued use. 1) Purchase all but not less than all the Equipment for the Fair Market Value per paragraph 1, 2) Renew the Agreement per paragraph 1, or 3) Return the Equipment per paragraph 3.

THIS IS A NONCANCELABLE / IRREVOCABLE AGREEMENT; THIS AGREEMENT CANNOT BE CANCELED OR TERMINATED.

CUSTOMER ACCEPTANCE
By signing below, you certify that you have reviewed and do agree to all terms and conditions of this Agreement on this page and on page 2 attached hereto.

Town of Paradise X
CUSTOMER (as referenced above) SIGNATURE TITLE DATED

ACCEPTANCE OF DELIVERY
The undersigned hereby certifies that: (i) all of the above-described equipment (the “Equipment”) has been delivered to the above-named customer (the “Customer”) at the address indicated above, (ii) the Equipment has been installed, is fully operational and in good condition, and is unconditionally accepted.

Town of Paradise X
CUSTOMER (as referenced above) SIGNATURE TITLE DATE OF DELIVERY

LESSOR ACCEPTANCE
Global Office Inc.

LESSOR SIGNATURE TITLE DATED
TERMS AND CONDITIONS (Continued on Page 2)

1. AGREEMENT: For business purposes only, you agree to lease from us the goods, together with all replacements, parts, repairs, additions, and accessions incorporated therein or attached thereto and any and all proceeds of the foregoing, including, without limitation, insurance recoveries (the "Equipment") and/or to finance certain licensed software and services (“Financed Items”, which are included in the word “Equipment” unless separately stated), all as described on page 1 of this Agreement, excluding equipment marked as not financed under this Agreement, as it may be supplemented from time to time. You agree to all of the terms and conditions contained in this Agreement and any supplement, which (with the acceptance certification) is the entire agreement regarding the Equipment ("Agreement") and which supersedes any purchase order or invoice. You authorize us to correct or insert missing Equipment identification information and to make corrections to your proper legal name and address. This Agreement becomes valid upon execution by us and will start on the date we pay the supplier.

Interim rent/due date adjustments will be in an amount equal to 1/30th of the Payment, multiplied by the number of days between the Agreement start date and the first Payment due date. Unless otherwise stated in an addendum hereto, this Agreement will renew for 12-month term(s) unless you send us written notice at least 90 days (before the end of any term) that you want to purchase or return the Equipment. All of the provisions of this Agreement shall continue to apply, including, without limitation, your obligations to remit Payments and other charges, until all of the Equipment is either returned to us or purchased by you. If any provision of this Agreement is declared unenforceable in any jurisdiction, the other provisions herein shall remain in full force and effect in that jurisdiction and all others. You understand and agree that we have no right, title or interest in intangible property or associated services such as periodic software licenses and prepaid database subscription rights (such intangible property “Software”) and you will comply throughout the term of this Agreement with any license and/or other agreement entered into with the supplier of the Software. 29904 Page 1 of 2 Rev. 04/11/2025
AGREEMENT NO.

APPLICATION NO.

Lease Agreement
126

2. RENT, TAXES AND FEES: You will pay the monthly Payment (as adjusted) when due, plus any applicable sales, use and property taxes. The base Payment will be adjusted proportionately upward or downward: (1) by up to 10% to accommodate changes in the actual Equipment cost; (2) if the shipping charges or taxes differ from the estimate given to you; and (3) to comply with the tax laws of the state in which the Equipment is located.

If we pay any taxes, insurance or other expenses that you owe hereunder, you agree to reimburse us when we request and to pay us a processing fee for each expense or charge we pay on your behalf. We may charge you for any filing fees required by the Uniform Commercial Code (UCC) or other laws, which fees vary state-to-state. By the date the first Payment is due, you agree to pay us an origination fee of $150, as shown on our invoice or addendum, to cover us for all closing costs. We will have the right to apply all sums, received from you, to any amounts due and owed to us under the terms of this Agreement. If for any reason your check is returned for nonpayment, you will pay us a bad check charge of $30 or, if less, the maximum charge allowed by law. We may make a profit on any fees, estimated tax payments and other charges paid under this Agreement.

3. MAINTENANCE AND LOCATION OF EQUIPMENT; SECURITY INTEREST: You agree to keep the Equipment: (1) in good repair, condition and working order, in compliance with applicable manufacturers’ and regulatory standards; (2) free and clear of all liens and claims; and (3) only at your address shown on page 1, and you agree not to move it unless we agree. As long as you have given us the written notice as required in paragraph 1 prior to the expiration or termination of this Agreement’s term, if you do not purchase the Equipment, you will return all but not less than all of the Equipment and all related manuals and use and maintenance records to a location we specify, at your expense, in retail re-saleable condition, full working order and complete repair. You are solely responsible for removing any data that may reside in the Equipment you return, including but not limited to hard drives, disk drives or any other form of memory. You grant us a security interest in the Equipment to secure all amounts you owe us under any agreement with us, and you authorize us to file a financing statement (UCC-1). You will not change your state of organization, headquarters or residence without providing prior written notice to us so that we may amend or file a new UCC-1. You will notify us within 30 days if your state of organization revokes or terminates your existence.

4. COLLATERAL PROTECTION; INSURANCE; INDEMNITY; LOSS OR DAMAGE: You agree to keep the Equipment fully insured against risk and loss, with us as lender’s loss payee, in an amount not less than the original cost until this Agreement is terminated. You also agree to obtain a general public liability insurance policy with such coverage and from such insurance carrier as shall be satisfactory to us and to include us as an additional insured on the policy. Your insurance policy(s) will provide for 10 days advance written notice to us of any modification or cancellation. You agree to provide us certificates or other evidence of insurance acceptable to us. If you fail to comply with this requirement within 30 days after the start of this Agreement, you agree to one of the following options, the selection of which is at our sole discretion: (1) we may obtain insurance covering our interest (and only our interest) in the Equipment for the Agreement term and renewals. Any insurance we obtain will not insure you against third party or liability claims and may be cancelled by us at any time. You may be required to pay us an additional amount each month for the insurance premium and an administrative fee. The cost may be more than the cost of obtaining your own insurance; or (2) we may charge you a monthly property damage surcharge of up to .0035 of the Equipment cost as a result of our credit risk and administrative and other costs, as would be further described on a letter from us to you. We may make a profit on this program. NOTHING IN THIS PARAGRAPH WILL RELIEVE YOU OF RESPONSIBILITY FOR LIABILITY INSURANCE ON THE EQUIPMENT. We are not responsible for, and you agree to hold us harmless and reimburse us for and to defend on our behalf against, any claim for any loss, expense, liability or injury caused by or in any way related to delivery, installation, possession, ownership, use, condition, inspection, removal, return or storage of the Equipment, although we reserve the right to participate in the defense and to select or approve defense counsel. You are responsible for the risk of loss or for any destruction of or damage to the Equipment.

You agree to promptly notify us in writing of any loss or damage. If the Equipment is destroyed and we have not otherwise agreed in writing, you will pay to us the unpaid balance of this Agreement, including any future rent to the end of the term plus the anticipated purchase price of the Equipment (both discounted at 3%). Any proceeds of insurance will be paid to us and credited, at our option, against any loss or damage. You authorize us to sign on your behalf and appoint us as your attorney-in-fact to endorse in your name any insurance drafts or checks issued due to loss or damage to the Equipment. All indemnities will survive the expiration or termination of this Agreement.

5. ASSIGNMENT: WE ARE THE OWNER OF THE EQUIPMENT. YOU HAVE NO RIGHT TO SELL, TRANSFER, ASSIGN OR SUBLEASE THE EQUIPMENT OR THIS AGREEMENT, without our prior written consent.

Without our prior written consent, you shall not reorganize or merge with any other entity or transfer all or a substantial part of your ownership interests or assets. You agree that we may sell or assign the Agreement without notice and the new Lessor will have the same rights that we have now and will not have to perform any of our obligations. You agree that the new Lessor will not be subject to any claims, defenses, or offsets that you may have against us.

6. DEFAULT AND REMEDIES: You will be in default if: (a) you do not pay any Payment or other sum due to us or any other person when due or if you fail to perform in accordance with the covenants, terms and conditions of this Agreement or any other agreement with us or any of our affiliates or any material agreement with any other lender, (b) you make or have made any false statement or misrepresentation to us, (c) you or any guarantor dies, dissolves or terminates existence, (d) there has been a material adverse change in your or any guarantor’s financial, business or operating condition, or (e) any guarantor defaults under any guaranty for this Agreement.

If any part of a Payment is more than 5 days late, you agree to pay a late charge of 10% of the Payment which is late or if less, the maximum charge allowed by law. If you are ever in default, at our option, we can terminate this Agreement and require that you pay the unpaid balance of this Agreement, including any future Payments to the end of the term plus the anticipated purchase price of the Equipment (both discounted at 3%). We may recover default interest on any unpaid amount at the rate of 12% per year. Concurrently and cumulatively, we may also use any or all of the remedies available to us under Articles 2A and 9 of the UCC and any other law, including requiring that you: (1) return the Equipment to us to a location we specify; and (2) immediately stop using any Financed Items. In addition, we will have the right, immediately and without notice or other action, to set-off against any of your liabilities to us any money, including depository account balances, owed by us to you, whether or not due. In the event of any dispute or enforcement of rights under this Agreement or any related agreement, you agree to pay our reasonable attorney's fees (including any incurred before or at trial, on appeal or in any other proceeding), actual court costs and any other collection costs, including any collection agency fee. If we have to take possession of the Equipment, you agree to pay the costs of repossession, moving, storage, repair and sale. The net proceeds of the sale of any Equipment will be credited against what you owe us under this Agreement. YOU AGREE THAT WE WILL NOT BE RESPONSIBLE TO PAY YOU ANY CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES FOR ANY DEFAULT, ACT OR OMISSION BY ANYONE.

Any delay or failure to enforce our rights under this Agreement will not prevent us from enforcing any rights at a later time. You agree that this Agreement is a "Finance Lease" as defined by Article 2A of the UCC and your rights and remedies are governed exclusively by this Agreement. You waive all rights under sections 2A-508 through 522 of the UCC. If interest is charged or collected in excess of the maximum lawful rate, we will not be subject to any penalties.

7. FAXED OR SCANNED DOCUMENTS, OR E-SIGNATURE, MISC.: This Agreement may be executed in counterparts. The executed counterpart which has our original signature and/or is in our possession shall constitute chattel paper as that term is defined in the UCC and shall constitute the original agreement for all purposes, including, without limitation: (i) any hearing, trial or proceeding with respect to this Lease; and (ii) any determination as to which version of this Agreement constitutes the single true original item of chattel paper under the UCC. If you manually or electronically sign and transmit this Agreement to us by facsimile or other electronic transmission, the transmitted copy shall be binding upon the parties. You agree that the facsimile or other similar electronic transmission of this Agreement manually signed by us, when attached to the facsimile or other electronic copy signed by you (manually or electronically), shall constitute the original agreement for all purposes. The parties further agree that, for purposes of executing this Agreement, and subject to our prior approval and at our sole discretion: (a) a document signed and transmitted by facsimile or other electronic transmission shall be treated as an original document; (b) the manual or electronic signature of any party on such document shall be considered as an original signature; (c) the document transmitted shall have the same effect as a counterpart thereof containing original signature; and (d) at our request, you, who executed this Lease and transmitted its signature by facsimile or other electronic transmission shall provide the counterpart of this Lease containing your original manual signature to us. No party may raise as a defense to the enforcement of this Agreement that a facsimile or other electronic transmission was used to transmit any signature of a party to this Lease. You agree to execute any further documents that we may request to carry out the intents and purposes of this Agreement. All notices shall be mailed or delivered by facsimile transmission or overnight courier to the respective parties at the addresses shown on this Agreement or such other address as a party may provide in writing from time to time. By providing any telephone number, now or in the future, for a cell phone or other wireless device, you are expressly consenting to receiving communications, regardless of their purpose, at that number, including, but not limited to, prerecorded or artificial voice message calls, text messages, and calls made by an automatic dialing system from us and our affiliates and agents. These calls and messages may incur access fees from your provider. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. What this means to you: when you open an account, we will ask for your name, address and other information that will allow us to identify you. We may also ask to see identifying documents. You authorize us to furnish your information, including credit application, payment history and account information, to credit reporting agencies and our assignees, purchasers or investors.

8. WARRANTY DISCLAIMERS: YOU AGREE THAT YOU HAVE SELECTED THE SUPPLIER AND EACH ITEM OF EQUIPMENT BASED UPON YOUR OWN JUDGMENT AND YOU DISCLAIM ANY RELIANCE UPON ANY STATEMENTS OR REPRESENTATIONS MADE BY US. WE DO NOT TAKE RESPONSIBILITY FOR THE INSTALLATION OR PERFORMANCE OF THE EQUIPMENT. THE SUPPLIER IS NOT AN AGENT OF OURS AND WE ARE NOT AN AGENT OF THE SUPPLIER, AND NOTHING THE SUPPLIER STATES OR DOES CAN AFFECT YOUR OBLIGATION UNDER THIS AGREEMENT. YOU WILL CONTINUE TO MAKE

ALL PAYMENTS UNDER THIS AGREEMENT REGARDLESS OF ANY CLAIM OR COMPLAINT AGAINST ANY SUPPLIER, LICENSOR OR MANUFACTURER, AND ANY FAILURE OF A SERVICE PROVIDER TO PROVIDE SERVICES WILL NOT EXCUSE YOUR OBLIGATIONS TO US UNDER THIS AGREEMENT. THIS AGREEMENT IS A NET AGREEMENT, YOU HAVE AN UNCONDITIONAL OBLIGATION TO MAKE ALL PAYMENTS AND YOU CANNOT WITHHOLD, SET OFF OR REDUCE SUCH PAYMENTS FOR ANY REASON. WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, OF, AND TAKE ABSOLUTELY NO

RESPONSIBILITY FOR, MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, CONDITION, QUALITY, ADEQUACY, TITLE, DATA ACCURACY, SYSTEM INTEGRATION, FUNCTION, DEFECTS, OR ANY OTHER ISSUE IN REGARD TO THE EQUIPMENT, ANY ASSOCIATED SOFTWARE AND ANY FINANCED ITEMS.

9. LAW, JURY WAIVER: Agreements, promises and commitments made by Lessor, concerning loans and other credit extensions must be in writing, express consideration and be signed by Lessor to be enforceable.

This Agreement may be modified only by written agreement and not by course of performance. This Agreement will be governed by and construed in accordance with the law of the state of the principal place of business of Lessor or its assignee. You consent to jurisdiction and venue of any state or federal court in the state the Lessor or its assignee has its principal place of business and waive the defense of inconvenient forum. For any action arising out of or relating to this Agreement or the Equipment, YOU AND WE WAIVE ALL RIGHTS TO A TRIAL BY JURY. 29904 Page 2 of 2 Rev. 04/11/2025
127
2275 Springfield Dr. Ste. 140
Chico, CA 95928
530.513.5183
"Schedule A": Town of Paradise
Equipment Needed Location Address City State Zip
Canon C5140 Town Hall - Clerk 5555 Skyway Paradise CA 95969 Canon C5140 Town Hall - Finance 5555 Skyway Paradise CA 95969 Canon C5140 Town Hall - Engineering 5555 Skyway Paradise CA 95969 Brother HL-EX470W Town Hall - Housing 5555 Skyway Paradise CA 95969 Brother HL-EX470W Town Hall - Town Manager 5555 Skyway Paradise CA 95969 Canon C3126 Police Department - Lobby 5595 Black Olive Dr Paradise CA 95969 Canon C3126 Police Department - Admin 5595 Black Olive Dr Paradise CA 95969 Canon C3126 Fire Department 767 Birch St. Paradise CA 95969 Canon C3126 Animal Shelter 925 American Way Paradise CA 95969 Canon C5150 Building Resiliency Center - Front 6295 Skyway Paradise CA 95969 Canon C5150 Building Resiliency Center - Back 6295 Skyway Paradise CA 95969 Global Office, Inc Customer
By: By:
authorized signature authorized signature
Name: Name:
print name print name
Date: Date:

Title Title
Additional Equipment/Product and/or Multiple location Addendum 128
NOTE: CAPITALIZED TERMS IN THIS DOCUMENT ARE DEFINED AS IN THE AGREEMENT, UNLESS SPECIFICALLY STATED OTHERWISE. 11557 REV 10/21

STATE AND LOCAL GOVERNMENT

ADDENDUM
AGREEMENT #
Addendum to Agreement # and any future supplements/schedules thereto, between Town of Paradise, as Customer and Global Office Inc, as Lessor. The words “you” and “your” refer to Customer. The words “we” and “us” refer to Lessor.

1. The parties wish to amend the above-referenced Agreement by adding the following language:

REPRESENTATIONS AND WARRANTIES OF CUSTOMER: You hereby represent and warrant to us that: (i) you have been duly authorized under the Constitution and laws of the applicable jurisdiction and by a resolution or other authority of your governing body to execute and deliver this Agreement and to carry out your obligations hereunder; (ii) all legal requirements have been met, and procedures have been followed, including public bidding, in order to ensure the enforceability of this Agreement; (iii) this Agreement is in compliance with all laws applicable to you, including any debt limitations or limitations on interest rates or finance charges; (iv) the Equipment will be used by you only for essential governmental or proprietary functions of you consistent with the scope of your authority, will not be used in a trade or business of any person or entity, by the federal government or for any personal, family or household use, and your need for the Equipment is not expected to diminish during the term of this Agreement; (v) you have funds available to pay Payments until the end of your current appropriation period, and you intend to request funds to make Payments in each appropriation period, from now until the end of the term of this Agreement; and (vi) your exact legal name is as set forth on page one of this Agreement.

INITIAL TERM AND RENEWAL TERM(S): The term of the Agreement consists of an initial term beginning on the date we pay Supplier and ending at the end of your fiscal year in which we pay Supplier, and a series of renewal terms, each co-extensive with your fiscal year. Except to the extent required by applicable law, if you do not exercise your right to terminate the Agreement under the Non-Appropriation or Renewal paragraph as of the end of any fiscal year, the Agreement will be deemed automatically renewed for the next succeeding renewal term.

An election by you to terminate the Agreement under the Non-Appropriation or Renewal paragraph is not a default.

Notwithstanding anything to the contrary set forth in the Agreement, if we cancel the Agreement following a default by you, we may require that you pay the unpaid balance of Payments under the Agreement through the end of your then-current fiscal year, but we may not require you to pay future Payments due beyond that fiscal year or the anticipated residual value of the Equipment. If we sell the Equipment following a default by you, you will not be responsible for a deficiency, except to the extent of our costs of repossession, moving, storage, repair and sale, and our attorneys’ fees and costs.

NON-APPROPRIATION OR RENEWAL: If either sufficient funds are not appropriated to make Payments or any other amounts due under this Agreement or (to the extent required by applicable law) this Agreement is not renewed either automatically or by mutual ratification, this Agreement shall terminate and you shall not be obligated to make Payments under this Agreement beyond the then-current fiscal year for which funds have been appropriated. Upon such an event, you shall, no later than the end of the fiscal year for which Payments have been appropriated or the term of this Agreement has been renewed, deliver possession of the Equipment to us. If you fail to deliver possession of the Equipment to us, the termination shall nevertheless be effective but you shall be responsible, to the extent permitted by law and legally available funds, for the payment of damages in an amount equal to the portion of Payments thereafter coming due that is attributable to the number of days after the termination during which you fail to deliver possession and for any other loss suffered by us as a result of your failure to deliver possession as required. You shall notify us in writing within seven days after (i) your failure to appropriate funds sufficient for the payment of the Payments or (ii) to the extent required by applicable law, (a) this Agreement is not renewed or (b) this Agreement is renewed by you (in which event this Agreement shall be mutually ratified and renewed), provided that your failure to give any such notice under clause (i) or (ii) of this sentence shall not operate to extend this Agreement or result in any liability to you.

SUPPLEMENTS; SEPARATE FINANCINGS: To the extent applicable, in the event that the parties hereafter mutually agree to execute and deliver any supplement or schedule (“Supplement”) under the above-referenced Agreement, such Supplement, as it incorporates the terms and conditions of the Agreement, shall be a separate financing distinct from the Agreement or other Supplements thereto. Without limiting the foregoing, upon the occurrence of an event of default or a non-appropriation event with respect to the Agreement or a Supplement (each, a separate “Contract”), as applicable, we shall have the rights and remedies specified in the Agreement with respect to the Equipment financed and the Payments payable under such Contract, and we shall have no rights or remedies with respect to Equipment financed or Payments payable under any other Contract unless an event of default or nonappropriation event has also occurred under such other Contract.

2. The parties wish to amend the above-referenced Agreement by restating certain language as follows:

Any provision in the Agreement stating that you shall indemnify and hold us harmless is hereby amended and restated as follows: “You shall not be required to indemnify or hold us harmless against liabilities arising from this Agreement. However, as between you and us, and to the extent permitted by law and legally available funds, you are responsible for and shall bear the risk of loss for, shall pay directly, and shall defend against any and all claims, liabilities, proceedings, actions, expenses, damages or losses arising under or related to the Equipment, including, but not limited to, the possession, ownership, lease, use or operation thereof, except that you shall not bear the risk of loss of, nor pay for, any claims, liabilities, proceedings, actions, expenses, damages or losses that arise directly from events occurring after you have surrendered possession of the Equipment in accordance with the terms of this Agreement to us or that arise directly from our gross negligence or willful misconduct.” Any provision in the Agreement stating that the Agreement is governed by a particular state’s laws and you consent to such jurisdiction and venue is hereby amended and restated as follows: “This Agreement will be governed by and construed in accordance with the laws of the state where you are located. You consent to jurisdiction and venue of any state or federal court in such state and waive the defense of inconvenient forum.”
Any provision in the Agreement stating this Agreement supersedes any invoice and/or purchase order is hereby amended and restated as follows: “You agree that the terms and conditions contained in this Agreement, which, with the acceptance certification, is the entire agreement between you and us regarding the Equipment and which supersedes any purchase order, invoice, request for proposal, response or other related document.”
Any provision in the Agreement stating that this Agreement shall automatically renew unless the Equipment is purchased, returned or a notice requirement is satisfied is hereby amended and restated as follows: “Unless the purchase option is $1.00 or $101.00, you agree to send us written notice at least 30 days before the end of the final renewal term that you want to purchase or return the Equipment, and you agree to so purchase or return the Equipment not later than the end of the final renewal term. If you fail to so purchase or return the Equipment at or before the end of the final renewal term, you shall be a holdover tenant with respect to this Agreement and the Equipment, and this Agreement shall renew on a month-to-month basis under the same terms hereof until the Equipment has been purchased or returned.” Any provision in the Agreement stating that we may assign this Agreement is hereby amended and restated as follows: “We may sell, assign, or transfer this Agreement without notice to or consent from you, and you waive any right you may have to such notice or consent.”
Any provision in the Agreement stating that you grant us a security interest in the Equipment to secure all amounts owed to us under any agreement is hereby amended and restated as follows: “To the extent permitted by law, you grant us a security interest in the Equipment to secure all amounts you owe us under this Agreement and any supplements hereto. You authorize and ratify our filing of any financing statement(s) and the naming of us on any vehicle title(s) to show our interest.”
Any provision in the Agreement stating that a default by you under any agreement with our affiliates or other lenders shall be an event of default under the Agreement 129
NOTE: CAPITALIZED TERMS IN THIS DOCUMENT ARE DEFINED AS IN THE AGREEMENT, UNLESS SPECIFICALLY STATED OTHERWISE. 11557 REV 10/21
is hereby amended and restated as follows: “You will be in default if: (i) you do not pay any Payment or other sum due to us under this Agreement when due or you fail to perform in accordance with the covenants, terms and conditions of this Agreement; (ii) you make or have made any false statement or misrepresentation to us; or (iii) you dissolve, liquidate, terminate your existence or are in bankruptcy.

Any provision in the Agreement stating that you shall pay our attorneys’ fees is hereby amended and restated as follows: “In the event of any dispute or enforcement of rights under this Agreement or any related agreement, you agree to pay, to the extent permitted by law and to the extent of legally available funds, our reasonable attorneys’ fees (including any incurred before or at trial, on appeal or in any other proceeding), actual court costs and any other collection costs, including any collection agency fee.” Any provision in the Agreement requiring you to pay amounts due under the Agreement upon the occurrence of a default, failure to appropriate funds or failure to renew the Agreement is hereby amended to limit such requirement to the extent permitted by law and legally available funds.

3. If your end-of-term option is the purchase of all Equipment for $1.00 or $101.00, the following applies: Unless otherwise required by law, upon your acceptance of the Equipment, title to the Equipment shall be in your name, subject to our interest under this Agreement.

4. With respect to any “Financed Items,” the following provisions shall be applicable to such Financed Items:

This Addendum concerns the granting to you of certain software and/or software license(s) (“Licensed Software”), the purchase by you of certain software components, including but not limited to, software maintenance and/or support (“Products”) and/or the purchase by you of certain implementation, integration, training, technical consulting and/or professional services in connection with software (“Services”) (collectively, the “Financed Items”) from software licensor(s) and/or supplier(s) (collectively, the “Supplier”), all as further described in the agreement(s) between you and Supplier (collectively, the “Product Agreement”). For essential governmental purposes only, you have requested and we have agreed that instead of you paying the fees pursuant to the Product Agreement to Supplier for the Financed Items, we will satisfy your obligation to pay such fees to Supplier, and in consideration thereof, you shall repay the sums advanced by us to Supplier by promptly making certain installment payments to us, which are included in the Payments set forth in the Agreement.

To the extent permitted by law, you grant us a security interest in the license(s), including without limitation, all of your rights in the Licensed Software granted thereunder, the Products, all rights to payment under the Product Agreement, the Financed Items, and all proceeds of the foregoing to secure all amounts you owe us under this Agreement. You authorize and ratify our filing of any financing statement(s) to show our interest.

Ownership of any Licensed Software shall remain with Supplier thereof. All Financed Items shall be provided by a Supplier unrelated to us, and your rights with respect to such Financed Items shall be governed by the Product Agreement between you and Supplier, which shall not be affected by this Agreement. IN NO EVENT SHALL WE

HAVE ANY OBLIGATION TO PROVIDE ANY FINANCED ITEMS, AND ANY

FAILURE OF SUPPLIER TO PROVIDE ANY FINANCED ITEMS SHALL NOT EXCUSE YOUR OBLIGATIONS TO US IN ANY WAY. YOU HAVE SELECTED SUPPLIER AND THE FINANCED ITEMS BASED UPON YOUR OWN JUDGMENT.

WE DO NOT TAKE RESPONSIBILITY FOR THE INSTALLATION OR
PERFORMANCE OF THE FINANCED ITEMS. SUPPLIER IS NOT AN AGENT OF

OURS AND WE ARE NOT AN AGENT OF SUPPLIER, AND NOTHING SUPPLIER STATES OR DOES CAN AFFECT YOUR OBLIGATIONS HEREUNDER. YOU

WILL MAKE ALL PAYMENTS UNDER THIS AGREEMENT REGARDLESS OF

ANY CLAIM OR COMPLAINT AGAINST ANY SUPPLIER, LICENSOR OR

MANUFACTURER, AND ANY FAILURE OF A SERVICE PROVIDER TO PROVIDE

SERVICES WILL NOT EXCUSE YOUR OBLIGATIONS TO US UNDER THIS AGREEMENT. WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, AS TO

THE FINANCED ITEMS COVERED BY THE PRODUCT AGREEMENT AND TAKE

ABSOLUTELY NO RESPONSIBILITY FOR MERCHANTABILITY OR FITNESS

FOR ANY PARTICULAR PURPOSE OR AS TO ANY PATENT, TRADEMARK OR

COPYRIGHT INFRINGEMENT, CONDITION, QUALITY, ADEQUACY, TITLE,

DATA ACCURACY, SYSTEM INTEGRATION, FUNCTION, DEFECTS OR ANY OTHER ISSUE IN REGARD TO THE FINANCED ITEMS. YOU HEREBY WAIVE

ANY CLAIM (INCLUDING ANY CLAIM BASED ON STRICT LIABILITY OR

ABSOLUTE LIABILITY IN TORT) THAT YOU MAY HAVE AGAINST US FOR ANY

LOSS, DAMAGE (INCLUDING, WITHOUT LIMITATION, LOSS OF PROFITS, LOSS

OF DATA OR ANY OTHER DAMAGES) OR EXPENSE CAUSED BY THE

FINANCED ITEMS COVERED BY THE PRODUCT AGREEMENT OR A

TERMINATION OF THE FINANCED ITEMS PURSUANT TO AN EVENT OF

DEFAULT, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE, LOSS, EXPENSE OR COST.

The following shall be additional events of default under the Agreement: (i) you fail to perform in accordance with the covenants, terms and conditions of the Product Agreement, or (ii) the Product Agreement is terminated, suspended, materially restricted or limited.

The following shall be additional remedies we have for your default under the Agreement: We shall have the right to: (a) cause the termination of the Financed Items and you irrevocably consent to such termination of the Financed Items by Supplier; and (b) require you to immediately stop using the Financed Items (regardless of whether you are in default under the Product Agreement) and you shall, at our option, either deliver to us a certification executed by a duly authorized officer certifying that you have ceased use of the Financed Items or deliver the Financed Items to a location designated by us. In the event you are entitled to transfer the right to use the Financed Items to any third party, you hereby agree to transfer any such right to use the Financed Items to any third party selected by us and acknowledge that you shall have no right to fees payable by any third party in connection with such transfer. However, we shall not be required to mitigate our damages caused by a default by transferring any Financed Items to a third party.

By signing this Addendum, Customer acknowledges the applicable changes noted above are incorporated by reference into the Agreement. In all other respects, the terms and conditions of the Agreement remain in full force and effect and remain binding on Customer. In the event of any conflict between the terms and conditions of the Agreement and this Addendum, the terms and conditions of this Addendum shall control. Customer has caused this Addendum to be executed by its duly authorized officer as of the date below.

Global Office Inc. Town of Paradise
Lessor Customer

X
Signature Signature

Title Date Title Date
130
NOTE: CAPITALIZED TERMS IN THIS DOCUMENT ARE DEFINED AS IN THE AGREEMENT, UNLESS SPECIFICALLY STATED OTHERWISE.

A595 REV 10/19

CALIFORNIA JUDICIAL

REFERENCE ADDENDUM
AGREEMENT #

Addendum to Agreement # and any future supplements/schedules thereto, between Town of Paradise, as Customer and Global Office Inc, as Lessor/Secured Party (“Agreement”). The words “you” and “your” refer to Customer. The words “we,” “us” and “our” refer to Lessor/Secured Party.

The parties wish to amend the above-referenced Agreement by adding the following language:

1. Any and all disputes, claims and controversies arising out of, connected with or relating to the Agreement or the transactions contemplated thereby (individually, a "Dispute") that are brought before a forum in which pre-dispute waivers of the right to trial by jury are invalid under applicable law shall be subject to the terms contained in this Addendum in lieu of the jury trial waiver otherwise provided in the Agreement. Disputes may include, without limitation, tort claims, counterclaims, claims brought as class actions, claims arising from schedules, supplements, exhibits or other documents to the Agreement executed in the future, disputes as to whether a matter is subject to judicial reference, or claims concerning any aspect of the past, present or future relationships arising out of or connected with the Agreement.

2. Any and all Disputes shall be heard by a referee and resolved by judicial reference pursuant to California Code of Civil Procedure (“CCCP”) §§ 638 et seq. The referee shall be a retired California state court judge or an attorney licensed to practice law in the State of California with at least 10 years' experience practicing commercial law. The parties shall not seek to appoint a referee that may be disqualified pursuant to CCCP §641 or 641.2 without the prior written consent of all parties. If the parties are unable to agree upon a referee within 10 calendar days after one party serves a written notice of intent for judicial reference upon the other parties, then the referee will be selected by the court in accordance with CCCP § 640(b).

3. The referee shall render a written statement of decision and shall conduct the proceedings in accordance with the CCCP, the Rules of Court, and the California Evidence Code, except as otherwise specifically agreed by the parties and approved by the referee. The referee's statement of decision shall set forth findings of fact and conclusions of law. The decision of the referee shall be entered as a judgment in the court in accordance with the provisions of CCCP §§644 and 645.

The decision of the referee shall be appealable to the same extent and in the same manner that such decision would be appealable if rendered by a judge of the superior court.

4. Notwithstanding the preceding agreement to submit Disputes to a judicial referee, the parties preserve, without diminution, certain rights and remedies at law or equity and under the Agreement that such parties may employ or exercise freely, either alone or in conjunction with or during a Dispute. Each party shall have and hereby reserves the right to proceed in any court of proper jurisdiction or by self-help to exercise or prosecute the following remedies, as applicable: (A) all rights to foreclose against any real or personal property or other security by exercising a power of sale granted in the Agreement or under applicable law or by judicial foreclosure and sale, including a proceeding to confirm the sale, (B) all rights of self-help including peaceful occupation of property and collection of rents, setoff, and peaceful possession of property, (C) obtaining provisional or ancillary remedies including injunctive relief, sequestration, garnishment, attachment, appointment of receiver and in filing an involuntary bankruptcy proceeding, and (D) when applicable, a judgment by confession of judgment. Preservation of these remedies does not limit the power of a judicial referee to grant similar remedies that may be requested by a party in a Dispute. No provision in the Agreement regarding submission to jurisdiction and/or venue in any court is intended or shall be construed to be in derogation of the provisions in this Addendum for judicial reference of any Dispute. The parties do not waive any applicable federal or state substantive law except as provided herein.

5. If a Dispute includes multiple claims, some of which are found not subject to this Addendum, the parties shall stay the proceedings of the claims not subject to this Addendum until all other claims are resolved in accordance with this Addendum. If there are Disputes by or against multiple parties, some of which are not subject to this Addendum, the parties shall sever the Disputes subject to this Addendum and resolve them in accordance with this Addendum.

6. During the pendency of any Dispute that is submitted to judicial reference in accordance with this Addendum, each of the parties to such Dispute shall bear equal shares of the fees charged and costs incurred by the referee in performing the services described in this Addendum. The compensation of the referee shall not exceed the prevailing rate for like services. The prevailing party shall be entitled to reasonable court costs and legal fees, including customary attorneys’ fees, expert witness fees, paralegal fees, the fees of the referee and other reasonable costs and disbursements charged to the party by its counsel, in such amount as is determined by the referee.

7. In the event of any challenge to the legality or enforceability of this Addendum, the prevailing party shall be entitled to recover the costs and expenses from the non-prevailing party, including reasonable attorneys' fees, incurred by it in connection therewith.

8. THIS ADDENDUM CONSTITUTES A "REFERENCE AGREEMENT" BETWEEN THE PARTIES WITHIN THE MEANING OF AND FOR PURPOSES OF CCCP § 638.

By signing this Addendum, Customer acknowledges the above changes to the Agreement and authorizes Lessor/Secured Party to make such changes. In the event of any conflict between this Addendum and the Agreement, this Addendum shall prevail. In all other respects, the terms and conditions of the Agreement remain in full force and effect and remain binding on Customer. This Addendum may be executed in multiple counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute one and the same agreement.

Global Office Inc Town of Paradise
Lessor/Secured Party Customer
X
Signature Signature

Title Date Title Date
131
City: County:

State: Zip:

Contact: FAX:

Phone:

Email:

N
CLR
Images
Incl
CLR
Overage
CPC
Base
Charge
1 0.0590 $0.00
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
Special EMA Instructions:

Signature
Signature
2275 Springfield Dr. Suite 140 Chico, CA 95928
Pg. 1 of 2
Town Hall - Town Manager Brother HL-EX470W
Base Frequency:

Overage Frequency:

CUSTOMER ACCEPTANCE
Company Name:

Department:

SHIP TO:

Edgar Abarca
Paradise
CA
Luis Marquez
95969
Contact Name:

Phone Number:

Email Address:

Service Tech:

Meter Contact Information
Tax / Fees / Misc
Total
Serial
Billy Hansen
Global Office Inc Date
Print Name
Equipment Maintenance Agreement
Date
Company Name:

Department:

City:

State:

Contact:

CUSTOMER
Monthly
Monthly
All machines to share same rates.

Total Images Included

Canon C3126
Canon C3126
Canon C3126
Canon C5150
Canon C5150

0.0098
Animal Shelter
Building Resiliency Center - Front
Building Resiliency Center - Back

EQUIPMENT MAINTENANCE DETAILS
Address:
[email protected]
CLR Rate BW
Overage Charge
BW
Images
Incl
Equip ID BW Rate

0.0590 0.0098
530.872.6291
95969
Address:
530.872.6291
[email protected]
Luis Marquez
530.872.6291
[email protected]
Multiple Locations
CA
Town of Paradise
5555 Skyway Road
BILL TO:

Town of Paradise
START DATE:

END DATE:

Location
Town Hall - Clerk
Town Hall - Finance
Town Hall - Engineering
Town Hall - Housing
Finance
Phone:

Email:

Paradise
9/1/2026
9/1/2031
Make & Model
County:

Zip:

FAX:

Canon C5140
Canon C5140
Canon C5140
Brother HL-EX470W
Canon C3126
(plus tax)
- -
$0.00

$0.00
Police Department - Lobby
Police Department - Admin
Fire Department

132
Initial
Pg. 2 of 2
Equipment Maintenance Agreement - Terms and Conditions
Limitations: Global will not be responsible for any consequental or incidental damages resulting from the use or service of the equipment. Such damages incude loss of revenue, downtime cost and loss of use of equipment.

Breach: If the customer fails to pay in a timely manner for services, Global can withhold service and supplies for the equipment covered under this agreement. Invoices are payable upon receipt, terms are net. All accounts which go beyond 30 days, will be charged a late fee equal to 1.5% of the outstanding balance. Customer shall be responsible for all costs incurred as a result of any collection activity required to satisfy all outstanding balances.

This Maintenance Agreement is entered into between you the customer, and Global Office, Inc. Subject to the terms and conditions set forth in this agreement and on the front page of this document, the parties agree as follows:

Term: This Agreement shall become effective on the date of delivery of the equipment and unless sooner terminated as provided in this agreement, shall remain in full force for an initial term as defined on page 1 of this agreement. Annual plans are for a 12-month period or the specified number of copies, whichever occurs first. All plans are subject to a minimum 5% annual increase.

Global Office, Inc Responsibilities: During the term of the Equipment Maintenance Agreement (EMA), Global Office Inc. (Global) will provide on-site service and repair (including parts and labor) preventative maintenance as required and all supplies excluding staples and paper (for supply inclusive contracts) for the equipment listed on the front of this document or subsequent amendment or equipment schedule.

For the term following the date of original installation, or purchase of EMA, Global guarantees the copier to operate at 98% uptime. The uptime is calculated per quarter on 600 working hours (8:00 AM - 5:00 PM). Customer will be reimbursed for the time the copier is out of service in excess of 2% of normal working hours per quarter (12 hours). The reimbursement will be determined in increments of 9 working hours and to be settled quarterly.

Exclusions: This service agreement shall not apply to services or repairs made necessary due to customer neglect, damage caused by the relocation of equipment without prior notification, service performed by NON-Global employees, or any damage caused by natural disasters or other than normal equipment wear and tear. A monthly fee of $5 per system will be charged to cover shipping cost's related to the shipping of toner for supply inclusive contracts.

Toner-Excess Usage: This maintenance agreement includes toner based on the manufacturers specifications. Customers who use excess toner may be charged for an additional usage fee.

After hours or non-contract charges: An hourly rate for non-contract customers is $150 per hour with a two-hour minimum. After hours service (after 5pm) can be provided for contract customers at the non-contract rate. All chargeable service calls will be billed $50 travel time. Global will provide service to non-EMA customers on a time and material basis.

Connecting and Networking devices: Global Office will cover and support connecting your new device to your network, support and train your designated employee to perform driver installation, setup scan and network settings, and perform training for end users. A 3% Standard Support Fee will be billed monthly to cover access to our remote help desk team for ongoing support related to any printer or device issues. This fee ensures you can reach out for assistance with troubleshooting, driver updates, configuration support, and other printer-related matters.

Meters: Meters will be read automatically utilizing Printanista and imageWARE Remote. Devices unable to collect meters using automated sources listed will require a $10 per month/device fee to be charged on maintenance agreement Global guarantees a 4 hour average response time during normal working business hours. If Global cannot maintain the equipment to its performance specifications, Global will replace the equipment with a comparable model at no additional charge to the Customer.

Termination: This maintenance agreement may be cancelled by either the customer or Global upon 30 days written notice. Customers termination of a maintenance agreement prior to the expiration date will be billed in accordance with the terms in effect on the termination date. Termination will be subject to the monthly minimum coverage through the termination month and the customer will be billed an early termination charge based on the number of full months remaining on the maintenance agreement.

Automatic Renewal: Upon expiration of the initial Term, this Agreement shall be automatically extended for month-to-month terms unless thirty days (30) prior to the expiration of the initial Term, or any extended term, a party hereto gives written notice to the other party of its termination of this Agreement as of such expiration date. 133
imageFORCE C5140
Product Description Space And Power Requirements
• Print/Copy Speed: up to 40 ppm (BW/Color, Letter)
• Scan Speed: up to 270 ipm (300 dpi) (BW/Color, Duplex) • Print up to 12" x 18"
• Includes two 550-sheet paper cassettes
• Standard security feature set, including Trellix Embedded Control and Verify System
at Startup with Auto Recovery
兟Total Dimensions (W x D x H): 45.75" x 28.43" x 46.77" 兟Total Installation Space (W x D x H): 66.61" x 42.24" x

46.77"
兟Main Unit Power Requirements: 120V/12A
兟Main Unit Plug: NEMA 5-15P
Product name Net component size
W D H
inch inch inch
Additional
Power
Supply
Plug
Image
imageFORCE
C5140 24.41 28.43 36.89
Buffer Pass Unit-R1 - - - None
Booklet Finisher-A2
with Tri-Fold 21.14 24.53 43.11 None
Cassette Feeding
Unit-AY1 24.41 27.48 9.88 None
2/3 Hole Puncher
Unit-A1 - - - None
Total 45.75 28.43 46.77
Dimensions shown for each accessory are its net size. The total dimensions shown include spacing and accessory overlap.
&OHUN
134
imageFORCE C5150
Product Description Space And Power Requirements
• Print/Copy Speed: up to 50 ppm (BW/Color, Letter)
• Scan Speed: up to 270 ipm (300 dpi) (BW/Color, Duplex) • Print up to 12" x 18"
• Includes two 550-sheet paper cassettes
• Standard security feature set, including Trellix Embedded Control and Verify System
at Startup with Auto Recovery
・Total Dimensions (W x D x H): 33.46" x 49.09" x 46.77" ・Total Installation Space (W x D x H): 41.34" x 28.43" x

46.77"
・Main Unit Power Requirements: 120V/12A
・Main Unit Plug: NEMA 5-15P
Product name Net component size
W D H
inch inch inch
Additional
Power
Supply
Plug
Image
imageFORCE
C5150 24.41 28.43 36.89
Inner Finisher-N1 18.46 20.67 8.62 None
Cassette Feeding
Unit-AY1 24.41 27.48 9.88 None
Inner 2/3 Hole
Puncher-D1 7.09 21.18 7.99 None
Total 33.46 49.09 46.77
Dimensions shown for each accessory are its net size. The total dimensions shown include spacing and accessory overlap.

BRC
135
imageFORCE C5140
Product Description Space And Power Requirements
• Print/Copy Speed: up to 40 ppm (BW/Color, Letter)
• Scan Speed: up to 270 ipm (300 dpi) (BW/Color, Duplex) • Print up to 12" x 18"
• Includes two 550-sheet paper cassettes
• Standard security feature set, including Trellix Embedded Control and Verify System
at Startup with Auto Recovery
兟Total Dimensions (W x D x H): 33.46" x 49.09" x 46.77" 兟Total Installation Space (W x D x H): 41.34" x 28.43" x

46.77"
兟Main Unit Power Requirements: 120V/12A
兟Main Unit Plug: NEMA 5-15P
Product name Net component size
W D H
inch inch inch
Additional
Power
Supply
Plug
Image
imageFORCE
C5140 24.41 28.43 36.89
Cassette Feeding
Unit-AY1 24.41 27.48 9.88 None
Inner Finisher-N1 18.46 20.67 8.62 None
Inner 2/3 Hole
Puncher-D1 7.09 21.18 7.99 None
Total 33.46 49.09 46.77
Dimensions shown for each accessory are its net size. The total dimensions shown include spacing and accessory overlap.
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136
imageFORCE C3126
Product Description Space And Power Requirements
• Print/Copy Speed: up to 26 ppm (BW/Color, Letter)
• Scan Speed: up to 270 ipm (300 dpi) (BW/Color, Duplex) • Print up to 12" x 18"
• Includes two 550-sheet paper cassettes
• Standard security feature set, including Trellix Embedded Control and Verify System
at Startup with Auto Recovery
兟Total Dimensions (W x D x H): 22.24" x 29.33" x 45.08" 兟Total Installation Space (W x D x H): 38.50" x 29.33" x

45.08"
兟Main Unit Power Requirements: 120V/12A
兟Main Unit Plug: NEMA 5-15P
Product name Net component size
W D H
inch inch inch
Additional
Power
Supply
Plug
Image
imageFORCE
C3126 22.24 29.33 35.31
Cassette Feeding
Unit-BB1 22.24 27.09 9.76
1st Copy Tray KitC1 16.61 19.09 3.07 None
Total 22.24 29.33 45.08
Dimensions shown for each accessory are its net size. The total dimensions shown include spacing and accessory overlap.
3')LUH$QLPDO6KHOWHU 3')LUH$QLPDO6KHOWHU
137



























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138

Town of Paradise
Council Agenda Summary
Date: October 13, 2026
Agenda Item: 2(d)
ORIGINATED BY: Jennifer Macarthy, Town Manager
REVIEWED BY: Scott Huber, Town Attorney
SUBJECT: Rescind and Replace Resolution No. 01-14 Resolution Relating to Settlement Authority for Liability Claims and Establishment of a Claims Committee.

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Adopt Resolution No. 2026--___ “A Resolution of the Town Council of the Town of Paradise Rescinding Resolution No. 01-14 and replacing it with No. 2026-___ Relating to the Settlement Authority for Liability Claims and Establishment of a Claims Committee.

Background:

Resolution No. 01-14 was approved in May 2001 relating to the settlement authority of the Town Manager which was established not to exceed $10,000. Over the past 25 years, the delegated authority amount has not been revisited.

Analysis:

Upon review, it is recommended to increase the authority to be in-line with the Town’s self-insured retention limit. The recommendation is to increase the Liability Claims Committee (composed of the Town’s claim administrator, the Town Manager and the Town Attorney) authorization to approve on behalf of the Town of Paradise the settlement of tort claims when such settlement does not exceed $50,000.

The Town Council shall approve the settlement of all tort claims exceeding $50,000.

Financial Impact:

None
139
()

TOWN OF PARADISE
RESOLUTION NO. 2026-___

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE RESCINDING RESOLUTION NO. 01-14 AND REPLACING WITH NO. 2026-___ RELATING TO

SETTLEMENT AUTHORITY FOR LIABILITY CLAIMS AND ESTABLISHMENT OF A

CLAIMS COMMITTEE
BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

Section 1. A committee to be known as the Claims Committee ("Committee") is hereby established. The Committee shall be composed of the Town's claims administrator, the Town Manager and the Town Attorney. The Committee is hereby authorized to approve on behalf of the Town of Paradise the settlement of tort claims when such settlement is more than $2,500 but does not exceed $50,000.

Section 2. The Town Council shall approve the settlement of all tort claims exceeding $50,000.

Section 3. The Town's claims administrator is hereby authorized to approve on behalf of the Town of Paradise the settlement of tort claims when such settlement is in the amount of $2,500 or less.

Section 4. A representative of the Town department or division related to a claim will be designated to assist the Committee and/or defense counsel with the investigation of the claim and/or preparation of discovery responses.

PASSED AND ADOPTED by the Town Council of the Town of Paradise this 13th day of October 2026, 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
140

Town of Paradise
Council Agenda Summary
Date: October 13, 2026
Agenda Item: 2(e)
ORIGINATED BY: Colin Nelson, Capital Projects Manager
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Revision to CDBG-DR Infrastructure 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 Superseding Resolution No. 2022-79 Authorizing and Approving Execution of a Grant Agreement to Receive an Allocation of Funding from the 2018 CDBG-DR Infrastructure Program and any Forthcoming Amendments, Thereto” to allow for an additional $300,000 in grant funding from HCD through the CDBG-DR program to be allocated to design of the Paradise Sewer Project.

Background:

In November of 2022, Town Council adopted Resolution 2022-79 authorizing the allocation of $30,000,000 from the 2018 CDBG‑DR Infrastructure Program for the for the Paradise Sewer Project.

In August of 2026, The Department of Housing and Community Development (HCD) notified Town Staff that additional project funds had become available for the design and right-of-way phase. The Town is eligible to receive an additional $300,000 increasing the total funding for design and right-of-way to $30,300,000.

Analysis:

The supplemental funding arrives at a critical point, as the project is transitioning from an aerated lagoon with percolation pond discharge to a membrane bioreactor system with surface water discharge. This design requires expanded engineering design, environmental studies, and feasibility analyses at two potential sites. The added allocation will increase the total CDBG-DR Infrastructure Program funds to $30,300,000 and supports the additional technical requirements with this design shift.

Financial Impact:

Approval will authorize an additional $300,000 for the design and right-of-way phase of the Paradise Sewer Project, increasing the total allocation from the 2018 CDBG-DR Infrastructure Program funds to $30,300,000.
141

1 TOWN OF PARADISE
RESOLUTION NO. 2026-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE SUPERSEDING RESOLUTION 2022-79 AUTHORIZING AND APPROVING

EXECUTION OF A GRANT AGREEMENT TO RECEIVE AN ALLOCATION OF FUNDING FROM THE 2018 CDBG-DR INFRASTRUCTURE PROGRAM AND

ANY FORTHCOMING AMENDMENTS, THERETO
BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

SECTION 1:

The Town Council of the Town of Paradise has reviewed the State of California’s CDBGDR Action Plan for 2018 disasters and, hereby, approves the execution of a Standard Agreement between Town of Paradise (“Subrecipient”) and the California Department of Housing and Community Development (“HCD”), allocating to the Subrecipient the aggregate amount, not to exceed, $30,000,000 $30,300,000 (“Grant”) for design and engineering work relative to the Paradise Sewer Project, a new in-ground wastewater collection and export system to serve the Sewer Service Area of the Town of Paradise.

The Town Council agrees to perform infrastructure-development-related activities, as further detailed in the Standard Agreement and consistent with the applicable Disaster Recovery Infrastructure Program (DR-Infrastructure) Policies and Procedures, as the same may be amended from time to time.

SECTION 2:

The Town Council hereby authorizes and directs the Town Manager or designee, Public Works Director/Town Engineer, to enter into, execute, and deliver the Standard Agreement and any and all subsequent amendments, thereto, with the State of California for the purposes of the Grant.

SECTION 3:

The Town Manager or designee, Public Works Director/Town Engineer, is authorized to execute and deliver all project applications and any and all related documentation required to effectuate the terms of the Standard Agreement, and to act on the Town’s behalf in all matters pertaining to all such applications and documentation, thereof.

SECTION 4:
allcation is approved, the Town Manager or designee, Public Works Director/Town Engineer, is authorized to enter into, execute, and deliver all Notice(s) to Proceed, and 142

2 any and all subsequent amendments, thereto, with the State of California for the purposes of the Grant.

SECTION 5:

If an application is approved, the 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 Standard Agreement for purposes of the Grant.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Paradise held on the 13th day of October, 2026 by the following vote:

AYES:

NOES:

ABSENT:

NOT VOTING:
_________________________
Steve Crowder, Mayor
ATTEST:
___________________________
Melanie Elves, Town Clerk
APPROVED AS TO FORM:
___________________________
Scott E. Huber, Town Attorney
143

3 STATE OF CALIFORNIA
Town of Paradise
I, Melanie Elves, Town Clerk of the Town of Paradise, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted at a duly noticed and convened meeting of said Town Council on November 7, 2022, and that such resolution has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof. ___________________/s/______________________
Melanie Elves, Town Clerk of the Town of Paradise,
State of California

By: _____________________________________
Name and Title*
144

Town of Paradise
Council Agenda Summary
Date: October 13, 2026
Agenda Item: 2(f)
ORIGINATED BY: Jessica Erdahl, Supervising Project Manager REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Accept Construction Contract - On-System Roadway Rehabilitation – Clark Road 2025

LONG TERM
RECOVERY PLAN:

Yes, Tier 1, Evacuation Routes
COUNCIL ACTION REQUESTED:

1. Consider adopting Resolution No. 2026- , “ A Resolution of the Town Council of Town of Paradise accepting the work performed under the On-System Roadway Rehabilitation – Clark Road 2025, Contract 7303.4 CON, performed by Baldwin Contracting Company, Inc. dba Knife River Construction”.

Background:

Due to the ongoing recovery effort and debris removal operations within the Town and Butte County, the Town’s on-system roadway infrastructure sustained heavy damage in the wake of the Camp Fire. The pavement structural sections were damaged in two ways:

1. Pavement scarring due to car fires – on the day of the Camp Fire, several motorists were required to abandon their vehicles and continue evacuating on foot. The subsequent car fires damaged the pavement, justifying the need for repair.

2. Pavement structural section damage due to heavy truck traffic – Following the Camp Fire, the Town experienced a staggering level of truck traffic. During the CALOES Debris Removal effort, over 3.7 million tons of material was removed, equivalent to approximately 300,000 truckloads. During that same period, PG&E, Comcast, and AT&T restored their damaged distribution infrastructure. Additionally, PG&E removed over 92,000 trees, and an additional 100,000 trees were removed in 2020 as part of the Hazard Tree Removal Program. The volume of trucks using the Town’s on-system roads has resulted in damage to the pavement structural section, justifying the need for rehabilitation.

The Town coordinated with Caltrans and Federal Highways Administration (FHWA) to secure Emergency Relief permanent restoration funding to repair damaged on-system roads town wide.

Through the Emergency Relief Program, the Town of Paradise has been approved for $55,439,200 for the on-system road rehabilitation project. The approved project is located on Federal-Aid “On-System” roads – meaning the Town’s primary collectors and arterials such as Skyway, Clark, Pearson, Elliott, Bille, Wagstaff, Pentz, etc.

Additionally, in 2018 the Town has been approved for $1,229,300 in Cycle 9 Highway Safety Improvement Program (HSIP) funds to improve safety at sixteen stop-controlled intersections at various locations. The countermeasure will be to systemically improve minor street approaches with a combination of additional intersection warning/regulatory signs, improved pavement markings, and providing improved sight triangles. For efficiency this project will be bid and constructed with the On-System Road Rehabilitation projects. 145
On November 10, 2020, Paradise Town Council awarded master on-call contracts to Mark Thomas, Dokken Engineering, GHD, Inc., Wood Rodgers, Inc. and Dewberry Drake Haglan to perform on-call professional civil engineering services for a variety of local, state, and federally funded projects. Subsequently, in January 2021, task orders were issued to Mark Thomas, Dokken Engineering, and Wood Rodgers, Inc. to perform civil design services on the on-system road rehabilitation project.

The overall scope of work for the combined 2024 Road Rehabilitation and HSIP Project can be summarized as follows:
 Repair Camp Fire damaged on-system roads to achieve a pre-fire condition.  Improve safety at two stop-controlled intersection with a combination of striping, warning/regulatory signs, improved pavement markings and providing improved sight triangles.

On June 14, 2022 Paradise Town Council awarded Contract No. 7303.1.CON, 2022 On-System Roadway Rehabilitation –Skyway (Project 1 – 3.22 miles)) to Baldwin Contracting Company, Inc. dba Knife River Construction in the amount of their base bid plus additive bid $5,069,864.78 and approved contingency expenditures not exceeding 10%.

On January 10, 2023 Paradise Town Council awarded Contract No. 7303.2.CON, 2023 OnSystem Roadway Rehabilitation – Pearson (Project 2 – 8.58 miles) to Baldwin Contracting Company, Inc. dba Knife River Construction in the amount of their base bid, $5,339,517.50 and approved contingency expenditures not exceeding 10%.

On June 18, 2024 Paradise Town Council awarded Contract No. 7303.3 CON, REBID 2024 OnSystem Road Rehabilitation /HSIP Systemic Intersection Safety Improvement Project (Project 3 – 7.52 miles) to Baldwin Contracting Company, Inc. dba Knife River Construction in the amount of their base bid, $4,835,562.88 and approved contingency expenditures not exceeding 10%.

On May 13, 2025 Paradise Town Council awarded Contract No. 7303.4 CON, On-System Road Rehabilitation – Clark Road 2025 (Project 4 – 2.1 miles) to Baldwin Contracting Company, Inc. dba Knife River Construction in the amount of their base bid, $6,445,840.80 and approved contingency expenditures not exceeding 10%.

On May 13, 2025 Paradise Town Council awarded Contract No. 7303.5 CON, 2025 On-System Road Rehabilitation – Misc (Project 5 – 3.83 miles) to All-American Construction, Inc. in the amount of their base bid, $8,416,590.87 and approved contingency expenditures not exceeding 10%.

On February 10, 2026 Paradise Town Council awarded Contract No. 7303.6 CON, On-System Road Rehabilitation – Misc 2026/HSIP Systemic Intersection Safety Improvement Project (Project 6 – 7.3 miles) Baldwin Contracting Company, Inc. dba Knife River Construction in the amount of their base bid, $8,252,767 and approved contingency expenditures not exceeding 10%.

Analysis:

Construction efforts began on June 20, 2025, and the project was substantially completed on December 15, 2025.

Financial Impact:

FHWA Emergency Relief funds have been authorized for construction and construction engineering phases at actual documented cost incurred.

The total estimated construction cost of the Project, including a 10% contingency, was $7,090,424.88. The actual total construction cost is $7,088,001.21, below budget. Project 146
expenditures and a funding summary is detailed below:

On-System Roadway Rehabilitation – Clark Road 2025
Contract Items
Total
Estimated Cost
ER 38Y0(012)

75.25%

CDBG-DR ER
Match 24.75%
NonParticipating
(Local)
NonParticipating
(Utility
Adjustments)
Construction Contract - Actuals $ 7,088,001.21 $ 5,201,719.94 $ 1,710,864.70 $ 7,155.21 $ 168,261.36 Construction Management (Est.) $ 960,202.28 $ 722,552.22 $ 237,650.06 $ - $ - Total $ 8,048,203.49 $ 5,924,272.16 $ 1,948,514.76 $ 7,155.21 $ 168,261.36 Total Available Funding CON/CE $17,308,730.57 $ 12,852,336.00 $ 4,280,978.00 $ 7,155.21 $ 168,261.36 Balance $ 9,260,527.08 $ 6,928,063.84 $ 2,332,463.24 $ - $ - Required On-System Road Rehabilitation matching funds were funded by Community Development Block Grant-Disaster Recovery funds. Utility partners will reimburse the Town for non-participating utility adjustments.

Attachments:

A. Resolution
B. Notice of Completion
147

TOWN OF PARADISE
RESOLUTION NO. 2026- _______

A RESOLUTION OF THE TOWN COUNCIL OF TOWN OF PARADISE ACCEPTING THE

WORK PERFORMED UNDER THE ON-SYSTEM ROADWAY REHABILITATION- CLARK ROAD 2025, CONTRACT 7303.4 CON, PERFORMED BY TO BALDWIN CONTRACTING COMPANY, INC. DBA KNIFE RIVER CONSTRUCTION
WHEREAS, the Town of Paradise has heretofore contracted with Baldwin Contracting Company, Inc. dba Knife River Construction for certain work performed under that certain project known as the On-System Roadway Rehabilitation – Clark Road 2025, being Contract No. 7303.4 CON; and
WHEREAS, said work of improvements, as called for by the contract between the Town of Paradise and Baldwin Contracting Company, Inc. dba Knife River Construction, referable to said project was completed on December 15, 2025 to the satisfaction of the Town; and WHEREAS, there has been posted a bond insuring the work of improvements from a maintenance standpoint for a period of one year from and after completion; NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise that it hereby accepts the work performed on those certain improvements, the subject of a contract between the Town of Paradise and Baldwin Contracting Company, Inc. dba Knife River Construction, known and referred to as the On-System Roadway Rehabilitation – Clark Road 2025 project.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 13 th day
of October 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Steve Crowder, Mayor
ATTEST:

Melanie Elvis, CMC, Town Clerk
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
148
RECORDING REQUESTED BY:

TOWN OF PARADISE
AND WHEN RECORDED MAIL TO:

TOWN CLERK

TOWN OF PARADISE
5555 SKYWAY
PARADISE, CA 95969
SPACE ABOVE THIS LINE FOR RECORDER’S USE

NOTICE OF COMPLETION
Notice is hereby given:

1. The undersigned is Owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the undersigned is Town of Paradise, a Municipal Corporation

3. The full address of the undersigned is 5555 Paradise, California 95969

4. The nature of the title of the undersigned is: IN FEE

5. The full names and full addresses of all persons, if any, who hold such interest or estate with the undersigned as joint tenants or as tenants in common are:

NAMES ADDRESSES
None

6. The names of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:

NAMES ADDRESSES
None

7. A work of improvement on the property hereinafter described was completed on December 15, 2025

8. The name of the original contractor, if any, for such work of improvement is Baldwin Contracting Company, Inc. dba Knife River Construction of Chico, CA

9. The property on which said work of improvement was completed is in the Town of Paradise, County of Butte, State of California, and is described as follows:

On-System Road Rehabilitation – Clark Road 2025, 7303.4 CON

10. The street address of said property is Clark Road, Paradise, CA (If no street address has been officially assigned, insert “None.”) Dated: October 13, 2026 Signature of Owner
named in Paragraph 2:

TOWN OF PARADISE
By:

Jennifer Macarthy
Town Manager, Town of Paradise

149

VERIFICATION
I, the undersigned say:

I am the Town Manager for the Town of Paradise, agent for the owner of the aforesaid interest or estate in the property described in the above notice:

I have read the foregoing notice and know and understand the contents thereof, and the facts stated herein are the true and correct.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on October 13, 2026 at Town Hall, Town of Paradise, Paradise, California.

TOWN OF PARADISE
Jennifer Macarthy, Town Manager
Project Name: On-System Road Rehabilitation – Clark Road 2025, 7303.4 CON

150

Town of Paradise
Council Agenda Summary
Date: October 13, 2026
Agenda Item: 6(a)
ORIGINATED BY: Aimee Beleu, Finance Director / Town Treasurer REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Fiscal Year 2024/25 Annual Comprehensive Financial Report and Single Audit Report
COUNCIL ACTION REQUESTED:

1. Consider adopting Resolution No. ____” A Resolution of the Town Council of the Town of Paradise Accepting the Town of Paradise Fiscal Year 2024/25 Annual Comprehensive Financial Report and Report on Federal Awards (Single Audit) for the Fiscal Year Ending June 30, 2025”. (ROLL CALL VOTE)
Background:

The Town of Paradise prepares annual financial statements in accordance with generally accepted accounting principles (GAAP) applicable to governmental entities. The financial statements provide information regarding the Town’s financial position and results of operations and include government-wide financial statements, governmental fund financial statements, fiduciary fund financial statements, required supplementary information, and accompanying notes.

The Town’s financial statements for the fiscal year ended June 30, 2025, were audited by Baker Tilly US, LLP. The independent audit was conducted in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.

The Independent Auditor’s Report, dated August 26, 2026, concludes that the Town’s financial statements present fairly, in all material respects, the respective financial position of the Town’s governmental activities, each major fund, and the aggregate remaining fund information as of June 30, 2025, and the respective changes in financial position in accordance with generally accepted accounting principles.

Analysis:

Net Position
The Fiscal Year 2024/25 financial statements reflect the continued financial impact of the Town’s long-term recovery and rebuilding efforts. Significant infrastructure construction, grant-funded activities, housing programs, and recovery-related projects continue to represent a substantial portion of the Town’s financial activity.
151
At June 30, 2025, the Town reported total assets of approximately $385.5 million and total liabilities of approximately $71.6 million. Total net position was approximately $323.1 million, an increase of approximately $41.0 million, or 14.5%, compared with the prior fiscal year.

General Fund Highlights
The Town's General Fund revenues increased by 9.2 million compared to the prior fiscal year.

The primary drivers of this growth were higher interest earnings and unrealized gains on investments. Taxes and assessments makes up roughly 31% of all revenues. Overall expenditures increased 24% year over year, with notable increases in Public Safety and Capital Outlay. The General Fund reported an ending balance of $212 million as of June 30, 2025, an increase of $6 million.

Capital Assets
Major capital asset additions for the year totaled $30 million, including $28 million in construction in progress, with a depreciation adjustment of $3.7 million. Significant infrastructure investments include substantial additions to both on- and off-system road projects, as well as continued preconstruction development for the Paradise Sewer Project. The table below shows the $101.5 million total capital assets, net of depreciation. Additional information regarding the capital assets of the Town can be found in the notes to the financial statements on page 36 of the report. 152
Long-Term Liabilities
Bonds payable and finance purchase arrangements continued to be reduced compared to the prior year as payments were made according to the applicable amortization schedules. The Town's OPEB obligation increased from the prior year based upon assumption rates and increases in staffing. The net pension liability decreased 1.1%. The Town has taken measures to mitigate the benefits in the future and the obligation is being amortized over a period of about 25 years.

Additional information regarding the long-term debt of the Town can be found in the notes to the financial statements on page 37 of the report.

Financial Impact:

There is no direct financial impact associated with receiving and accepting the Fiscal Year 2024/25 Annual Comprehensive Financial Report. Costs associated with preparation of the financial statements and the annual independent audit were included in the adopted budget.

The financial statements provide information regarding the Town’s financial position as of June 30, 2025, and the financial results of operations for Fiscal Year 2024/25. Acceptance of the report does not authorize additional expenditures or modify existing budget appropriations. 153

TOWN OF PARADISE
RESOLUTION NO. 2026-___

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE ACCEPTING THE FISCAL YEAR 2024/25 ANNUAL COMPREHENSIVE FINANCIAL REPORT AND REPORT ON FEDERAL AWARDS (SINGLE AUDIT) FOR THE FISCAL YEAR ENDING JUNE 30, 2025 WHEREAS, the Town of Paradise has prepared its financial statements for the fiscal year ended June 30, 2025, in accordance with generally accepted accounting principles applicable to governmental entities; and
WHEREAS, Baker Tilly US, LLP performed an independent audit of the Town’s financial statements for the fiscal year ended June 30, 2025, and issued its Independent Auditor’s Report dated August 26, 2026; and
WHEREAS, the Independent Auditor’s Report states that the Town’s financial statements present fairly, in all material respects, the financial position of the Town’s governmental activities, each major fund, and the aggregate remaining fund information as of June 30, 2025, and the respective changes in financial position for the year then ended in accordance with generally accepted accounting principles; and WHEREAS, the Town was also subject to a Single Audit pursuant to the requirements of Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; and WHEREAS, the Fiscal Year 2024/25 Report on Federal Awards includes the Schedule of Expenditures of Federal Awards, Independent Auditor’s Reports, Schedule of Findings and Questioned Costs, Corrective Action Plan, and Summary Schedule of Prior Audit Findings; and WHEREAS, the Town Council has reviewed the Fiscal Year 2024/25 Annual Comprehensive Financial Report and the Fiscal Year 2024/25 Report on Federal Awards.

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

SECTION 1. The Town Council hereby receives and accepts the Town of Paradise Fiscal Year 2024/25 Annual Comprehensive Financial Report for the fiscal year ended June 30, 2025.

SECTION 2. The Town Council hereby receives and accepts the Town of Paradise Fiscal Year 2024/25 Report on Federal Awards (Single Audit), including the Schedule of Expenditures of Federal Awards, Schedule of Findings and Questioned Costs, Corrective Action Plan, and Summary Schedule of Prior Audit Findings.
154

TOWN OF PARADISE
RESOLUTION NO. 2026-____
PASSED AND ADOPTED by the town council of the Town of Paradise on this 13th day of October, 2026 by the following vote:

AYES:

NOS:

ABSENT:

ABSTAIN:
___________________________
Steve Crowder, Mayor
ATTEST:
____________________________
Melanie Elvis, Town Clerk
APPROVED AS TO LEGAL FORM:
_____________________________
Scott E. Huber, Town Attorney
155
Town of Paradise, California
Financial Statements and
Supplementary Information
June 30, 2025
156
Town of Paradise, California
Table of Contents
June 30, 2025
Page
Independent Auditors' Report 1
Management's Discussion and Analysis (Required Supplementary Information) 4 Basic Financial Statements
Government-Wide Financial Statements:

Statement of Net Position 12
Statement of Activities 13
Governmental Fund Financial Statements:

Balance Sheet - Governmental Funds 14
Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds 15 Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Governmental Funds 16
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 17 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position 18
Statement of Changes in Fiduciary Net Position 19
Notes to Financial Statements 20
157
Town of Paradise, California
Table of Contents
June 30, 2025
Page
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

General Fund 52
Camp Fire 2018 Fund 53
Loan Funds 54
CalHOME Grants 55
CDBG Grants Fund 56
Schedule of the Town's Proportionate Share of the Net Pension Liability (Asset) Cost-Sharing Pension Plan (Unaudited) 57
Schedule of Changes in the Town's Net OPEB Liability and Related Ratios (Unaudited) 58 Schedule of the Town's Pension/OPEB Contributions (Unaudited) 59 Supplementary Information
Combining Balance Sheet - Nonmajor Governmental Funds 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 61
Combining Statement of Net Position - Custodial Funds 62 Combining Statement of Changes in Net Position - Custodial Funds 63 158
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.

Independent Auditors' Report
To the Town Council of
Town of Paradise, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Town of Paradise, California (the Town), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the Town as of June 30, 2025 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town's ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
1 159
Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 160
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 26, 2026, on our consideration of the Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town's internal control over financial reporting and compliance.

Tempe, Arizona
August 26, 2026
3 161
Town of Paradise, California
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2025
4 Introduction
As management of the Town of Paradise (the Town), we offer readers of the Town's basic financial statements this narrative overview and analysis of the financial activities of the Town as of and for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with the accompanying Independent Auditor's Report, the basic financial statements, and the accompanying notes to the financial statements.

Financial Highlights for the Year
This report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the Town as a whole and present a longer-term view of the Town's finances. For governmental activities, the statements tell how these services were financed in the short-term as well as what remains for future spending. Fund financial statements report the Town's operations in more detail than the government-wide statements by providing information about the Town's most significant funds. The remaining statements provide financial information about activities for which the Town acts as a trustee or custodian for the benefit of those outside the government.  In the current year, the Town's net position increased to $323 million as compared to the prior year at $282 million. The Town's unrestricted and restricted cash and investments decreased to $209.7 million, primarily as a result of the Town's change in investments, and inflow of reimbursements.

Accounts and interest receivables, prepaid items, and the advance to the Successor Agency increased to $2.3 million from $1.4 million in the prior year, which resulted primarily from a reduction in accounts receivable activity during the prior fiscal year. The Town's rebuilding efforts and capital projects resulted in increased total capital assets to $101.5 million compared to $76 million in the prior year.
 The Town reports $22.4 million of pension liability and pension related net deferred use of resources to its activities as compared to $20.4 million the prior year. The Town contracts with CalPERS for Pension benefits for its employees. The Town is making the required contributions toward the longterm pension obligation just described. This obligation is being amortized over approximately a 25- year period.
 Accounts payable increased to $11.3 million from $6.4 million in the prior fiscal year due to the increased infrastructure construction for the rebuilding of the Town. Unearned revenues decreased to $8.7 million from $11.7 million in the prior fiscal year. Unearned revenue sources include insurance claim advances, advances on grant funds awarded, retentions on grant reimbursements, and housing program insurance funds held for the 2018 Camp Fire. The Town's long-term liabilities due in more than one year decreased to $48.5 million from $50 million in the prior year due primarily to payments on long-term debt and the implementation of GASB 101.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the basic financial statements of the Town. These basic financial statements comprise three components: (1) government wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

162
Town of Paradise, California
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2025
5 Government-Wide Financial Statements
The Government-wide financial statements present the financial picture of the Town from the economic measurement resources focus using the accrual basis of accounting. These statements include all assets of the Town (including capital assets) as well as all liabilities (including long-term debt). They are intended to provide a broad overview in a manner similar to a private sector business. Additionally, certain eliminations have occurred as prescribed by Statement No. 34 in regard to interfund activity, payables and receivables.

Statement of Net Position - The Statement of Net Position (page 12) presents information of all the assets/deferred outflows and liabilities/deferred inflows of the Town, with the difference between the two being reported as Net Position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating.

Statement of Activities - The Statement of Activities (page 13) presents information showing how the net position of the Town changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Fund Financial Statements
The Fund Financial Statements provide detailed information about the most significant funds, not the Town as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes other funds to help it control and manage resources for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other money. All the funds of the Town are considered governmental funds.

Governmental Funds - Governmental Funds are used to account for essentially the same functions reported as governmental activities in the Government–wide financial statements. All of the basic services of the Town are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the operations and basic services provided to residents. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance programs of the Town. Because the focus of governmental funds is narrower than that of the Government–wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government–wide financial statements. By doing so, readers may better understand the long-term impact of the near-term financing decisions of the Town.

The reconciliation of differences between the governmental fund financial statements and the government-wide financial statements is explained in a section following each governmental fund financial statement.

The Town adopts an annual appropriated budget for the General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with the budget.

Notes to Financial Statements - The Notes to Financial Statements provide additional information that is essential to a full understanding of the data provided in the Government-wide and Governmental fund financial statements.

163
Town of Paradise, California
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2025
6 Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of the financial position of a government entity. In the case of the Town of Paradise, assets and deferred outflows exceed liabilities and deferred inflows by $323 million at the close of the 2025 fiscal year.

Net investment in capital assets, totaling $93.7 million is just one portion of the Town’s net positions and are presented as net of any debt used to acquire those assets that is still outstanding. The Town uses these capital assets to provide services to residents; consequently, the assets are not available for future spending.

Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion of net position of $13.5 million represents resources that are subject to constraints by either external creditors or government entities or by law through constitutional provisions or enabling legislation.

The remaining balance of unrestricted net position $215.9 million, reflects its cash and current accounts receivable less any current liabilities (e.g. accounts payable, accrued payroll, and compensated absences) and long-term liabilities not associated with capital assets. The Town uses the cash balances to pay current and ongoing financial obligations in order to provide services to residents.

In fiscal year 2015, the Town adopted Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions, which requires the Town to report a net liability for pensions of $30 million in the governmental activities. In fiscal year 2018, the Town adopted Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, which requires the Town to report a net liability for OPEB of $13 million in the governmental activities. The Town pays for pensions and OPEB on a pay as you go basis with current financial resources each year. However, the net pension/OPEB liability required to be reported is an actuarially determined amount for resources that are required sometime in the future.

164
Town of Paradise, California
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2025
7 The following table reflects the condensed Statement of Net Position:

Town of Paradise
Condensed Statement of Net Position
As of June 30, 2025 and 2024
Primary Government Activities Increase
2025 2024 (Decrease)
Cash and other assets $ 283,884,368 $ 264,832,947 $ 19,051,421 Capital assets 101,567,981 75,765,264 25,802,717

Total assets 385,452,349 340,598,211 44,854,138

Total deferred outflows 11,807,633 15,499,519 (3,691,886)

Other liabilities 21,336,081 19,913,152 1,422,929
Long-term liabilities 50,268,597 50,817,805 (549,208)

Total liabilities 71,604,678 70,730,957 873,721

Total deferred inflows 2,556,572 3,228,463 (671,891)

Net investment in capital assets 93,678,622 75,204,510 18,474,112 Restricted 13,453,446 29,355,607 (15,902,161)
Unrestricted 215,966,664 177,518,193 38,448,471

Total net position $ 323,098,732 $ 282,078,310 $ 41,020,422 Government-Wide Activities
The Net Position of the Town from governmental activities increased from $282 million to $323 million, a change of 14.5%. Key elements of these activities are as follows:
 Total revenues for 2025 increased to $97 million, up from $82.0 million in 2024. This growth reflects increases in both programs and general revenues. Program revenues rose to $66 million, driven by capital contributions and grants of $48 million, while charges for services and operating contributions and grants decreased. General revenues totaled $31 million, up from $21.2 million, reflecting higher other taxes, motor vehicle in-lieu payments, and other general revenues, which were boosted by insurance proceeds.
 Total program expenses increased to $56 million, compared to $45.0 million in 2024. The primary drivers of this increase were Community Development $28 million, Public Safety $16 million, and General Government $7 million, supporting ongoing rebuilding, infrastructure improvements, and asset replacements throughout the Town.
 The Town's net position increased by $41 million in 2025, compared to an increase of $37 million in the prior year. The underlying growth in net position is from operational and capital activities.

165
Town of Paradise, California
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2025
8 The following table reflects the Condensed Statement of Activities:

Town of Paradise
Condensed Statement of Activities
Years Ended June 30, 2025 and 2024
Primary Government Activities Increase
2025 2024 (Decrease)
Program revenues:

Charges for services $ 18,377,723 $ 21,236,491 $ (2,858,768) Capital/operating grants and
contributions 48,170,113 39,619,948 8,550,165
General revenues:

Taxes:

Property taxes 4,195,196 4,471,390 (276,194)
Sales taxes 2,573,701 2,645,804 (72,103)
Other taxes 3,081,347 1,304,113 1,777,234
Motor vehicle in-lieu 1,855,737 1,642,149 213,588
Investment income 11,827,324 9,658,775 2,168,549
Insurance proceeds 6,565,450 10,023 6,555,427
Other general revenues 609,982 1,452,481 (842,499)

Total revenues 97,256,573 82,041,174 15,215,399

Expenses:

General government 7,199,040 4,701,414 2,497,626
Community development 28,591,284 20,998,241 7,593,043
Public safety 16,091,668 13,974,123 2,117,545
Public works 1,868,523 1,451,741 416,782
Parks and recreation 258,583 273,831 (15,248)
Streets 1,853,329 3,206,803 (1,353,474)
Interest on long-term debt 389,935 433,790 (43,855)

Total expenses 56,252,362 45,039,943 11,212,419

Net revenues (expense) before
transfers 41,004,211 37,001,231 4,002,980

Net transfers in (out) 16,211 - 16,211

Increase (decrease) in net position 41,020,422 37,001,231 4,019,191

Beginning net position 282,078,310 245,077,079 37,001,231

Ending net position $ 323,098,732 $ 282,078,310 $ 41,020,422

166
Town of Paradise, California
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2025
9 Town Funds Financial Analysis
As the Town completed the year, its governmental funds, (as presented in the balance sheet and the statement of revenues, expenditures and changes in fund balances), reported a combined fund balance of $193 million. The assigned fund balance is assigned to the Long-Term Sustainability Plan and represents settlement proceeds paid to the Town by Pacific Gas & Electric Company for damages resulting from the 2018 Camp Fire.

General Fund -
The Town's General Fund revenues increased by 9.2 million compared to the prior fiscal year. The primary drivers of this growth were higher interest earnings and unrealized gains on investments. Taxes and assessments makes up roughly 31% of all revenues.

Overall expenditures increased 24% year over year, with notable increases in Public Safety and Capital Outlay.

The General Fund reported an ending balance of $212 million as of June 30, 2025, an increase of $6 million.

CalHOME Grant Fund - The CalHOME Grant fund is a State Grant funding source to allow the Town to provide income-eligible community members loans for housing purposes. The Town provides low interest and interest-forgivable loans to owner-occupied rehabilitation/reconstruction as well as first time home buyers.

The Town can also provide loans and grants for housing rehabilitation projects. The Town has provided funding for multi-family housing projects through this fund as well.

Camp Fire 2018 Fund - The Camp Fire 2018 Fund and Disaster Recovery Project Fund accounts for monies collected for the Camp Fire relief program. Revenues primarily consist of grant funding for recovery efforts and insurance claim reimbursements. Expenses consist of charges for continued support for rebuilding efforts of Town infrastructure and the overall community throughout the fiscal year. Some of the major projects for the year were Off-System Road Rehabilitation and Camp Fire Hydrant Repairs.

Community Development Block Grant Fund - The Community Development Block Grant funds, totaling $18 million, were invested to support the rebuilding of the Town of Paradise through a range of critical infrastructure and community development projects. These funds contributed to road rehabilitation, road improvements, and major road extensions and widenings that enhance safety and mobility throughout the community. Additionally, Community Development Block Grant resources supported the Paradise Sewer Project, a key component of long-term recovery and future development, and helped advance the construction of multi-family homes, expanding much-needed housing options as the Town continues to rebuild.

167
Town of Paradise, California
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2025
10 Capital Asset and Debt Administration
Capital Assets
Major capital asset additions for the year totaled $30 million, including $28 million in construction in progress, with a depreciation adjustment of $3.7 million. Significant infrastructure investments include substantial additions to both on- and off-system road projects, as well as continued pre-construction development for the Paradise Sewer Project.

The table below shows the $101.5 million total capital assets, net of depreciation. Additional information regarding the capital assets of the Town can be found in the notes to the financial statements on page 36 of this report.

Capital Assets (Net of Depreciation)
As of June 30, 2025 and 2024
Governmental Activities Increase
2025 2024 (Decrease)
Land $ 1,882,218 $ 1,845,010 $ 37,208
Buildings and improvements 2,922,551 3,077,070 (154,519) Construction in progress 66,656,971 38,117,815 28,539,156 Machinery and equipment 1,156,098 1,374,247 (218,149)
Vehicles 2,349,764 2,512,770 (163,006)
Infrastructure 26,600,379 28,838,352 (2,237,973)
Total capital assets, net $ 101,567,981 $ 75,765,264 $ 25,802,717 Long-Term Liabilities
Bonds payable and finance purchase arrangements continued to be reduced compared to the prior year as payments were made according to the applicable amortization schedules. The Town's OPEB obligation increased from the prior year based upon assumption rates and increases in staffing. The net pension liability decreased 1.1%. The Town has taken measures to mitigate the benefits in the future and the obligation is being amortized over a period of about 25 years.

Additional information regarding the long-term debt of the Town can be found in the notes to the financial statements on page 37 of this report.

The following table shows the Town's outstanding debt:

Outstanding Debt
As of June 30, 2025 and 2024
Primary Government Activities Increase
2025 2024 (Decrease)
Bonds payable $ 2,173,303 $ 2,622,127 $ (448,824)
Accreted interest payable 3,854,169 4,250,410 (396,241) Finance purchase arrangements 11,342 30,196 (18,854)
Net OPEB liability 13,018,739 13,124,624 (105,885)
Net pension liability 30,447,009 30,790,448 (343,439)
Compensated absences 764,035 615,001 149,034
Total noncurrent liabilities $ 50,268,597 $ 51,432,806 $ (1,164,209)

168
Town of Paradise, California
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2025
11 The Town as Trustee
The Town is the trustee, or fiduciary, for an employee bank fund and a police department fund money fund.

As of January 2012, it elected to become the successor agency of the former Paradise Redevelopment Agency (Agency). The Town's current role is to manage the receipt and disbursement of monies related to debt service of enforceable obligations of the Agency. The Town also manages a general trust fund. All the related activity is being accounted for in the private-purpose trust funds. The Town is responsible for the assets in these funds and must only use these funds as indicated in the trust arrangements. The Town's fiduciary activities related to the Agency and the general trust fund are reported in the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. The activities are excluded from the Town's other financial statements because the Town cannot use these assets to finance its operations. The Town is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

The private-purpose trust funds have a net position of negative $7 million as of June 30, 2025.

Economic Factors and Fiscal Year 2025 Budget/Tax Rate
The Camp Fire on November 8, 2018, was the most destructive wildfire in California's history. While rebuilding the 10,000 structures destroyed is underway, it is expected to take over a decade for the Town of Paradise to be fully restored. Through a community visioning process, residents reached a consensus to rebuild a more resilient, fire-resistant town. With the support of federal, state, and local partners, the Town has continued implementing long-term recovery planning and projects.

The Town plans to restore the facilities and equipment lost or damaged during the fire through a combination of insurance claims, FEMA assistance, CDBG programs, CalTrans funding, and other funding sources.

FEMA, along with the California Governor's Office of Emergency Services, will support the Town's infrastructure restoration efforts through public assistance and hazard mitigation grants. CalTrans funding is being used to support the repair and reconstruction of roads and transportation infrastructure, while CDBG programs help fund rebuilding projects that benefit the broader community, including housing, public facilities, and critical infrastructure.

Financial Contact
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Town's finances and to show the Town's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Town's Finance Department at 5555 Skyway, Paradise, California.
169
Basic Financial Statements
170
171
Governmental
Activities
Assets
Cash and investments $ 209,625,619
Restricted cash and investments 146,509
Accounts receivable 712,314
Due from other governments 22,243,092
Interest receivable 12,864
Due from fiduciary fund 145,768
Prepaid items 46,179
Advance to Successor Agency 1,492,557
Loans receivable 49,459,466
Capital assets, not being depreciated 68,539,189
Capital assets, being depreciated, net 33,028,792
Total assets 385,452,349
Deferred Outflows of Resources
Related to net pension liability 8,924,842
Related to net OPEB liability 2,882,791
Total deferred outflows of resources 11,807,633
Liabilities
Accounts payable 11,250,137
Retainages payable 993,506
Accrued wages 434,441
Unearned revenue 8,657,997
Noncurrent liabilities:

Due within one year:

Compensated absences 469,891
Accreted interest payable 840,909
Bonds payable 439,091
Financed purchases payable 9,084
Due in more than one year:

Compensated absences 294,144
Accreted interest payable 3,013,260
Bonds payable 1,734,212
Financed purchases payable 2,258
Net pension liability 30,447,009
Net other post employment benefits (OPEB) liability 13,018,739 Total liabilities 71,604,678
Deferred Inflows of Resources
Related to net pension liability 890,621
Related to net OPEB liability 1,665,951
Total deferred inflows of resources 2,556,572
Net Position
Net investment in capital assets 93,678,622
Restricted for:

Debt service 146,509
Community development 4,055,749
Public safety 487,360
Streets and roads 4,083,228
Wastewater and drainage 4,680,600
Unrestricted 215,966,664
Total net position $ 323,098,732
Town of Paradise, California
Statement of Net Position
June 30, 2025
See notes to financial statements
12 172
Net (Expense)
Operating Capital Revenue and
Charges for Grants and Grants and Changes in
Functions/Programs Expenses Services Contributions Contributions Net Position Governmental Activities
General government $ 548,532 7,199,040 $ 1,185,984 $ - $ (5,464,524) $ Community development 16,938,886 28,591,284 25,573,022 74,279 13,994,903Public safety 402,028 16,091,668 483,212 - (15,206,428)Public works 488,277 1,868,523 136,964 20,716,652 19,473,370Parks and recreation - 258,583 - - (258,583)Streets - 1,853,329 - - (1,853,329)Interest on long-term debt - 389,935 - - (389,935) Total governmental activities 18,377,723 56,252,362 27,379,182 20,790,931 10,295,474 General revenues:

Taxes:

Secured and unsecured property taxes $ 4,195,196
Sales and use taxes 2,573,701Transient lodging tax 156,846Franchise fees 564,706Real property transfer taxes 93,530Gas tax 2,132,105Other taxes 134,160 Motor vehicle in-lieu, restricted 1,855,737Homeowners property tax relief, unrestricted 30,754Investment income 11,827,324Insurance proceeds 6,565,450Other 579,228 Transfers in/(out) 16,211
Total general revenues and transfers 30,724,948Change in net position 41,020,422 Net Position, Beginning 282,078,310Net Position, Ending $ 323,098,732 Program Revenues
Town of Paradise, California
Statement of ActivitiesYear Ended June 30, 2025
See notes to financial statements
13 173
Nonmajor Total
General Camp Fire Loan CalHOME CDBG Grant Governmental Governmental Fund 2018 Fund Funds Grants Fund Funds Funds
Assets
Cash and investments $ - 188,609,947 $ 4,281,316 $ 40,487 $ 24,968 $ 16,668,901 $ $ 209,625,619 Restricted cash and investments - 146,509 - - - - 146,509 Accounts receivable - 640,909 - - - 71,405 712,314Interest receivable - 4,026 2,056 18 11 6,753 12,864Prepaid expenses - 46,179 - - - - 46,179Due from other governments 14,261,088 452,439 - 2,357,324 457,257 4,714,984 22,243,092Due from other funds - 22,875,928 - - - - 22,875,928Advance to Successor Agency - 1,492,557 - - - - 1,492,557Loans receivable - - 9,795,477 13,835,142 25,828,847 - 49,459,466 Total assets $ 14,261,088 214,268,494 $ 14,078,849 $ 16,232,971 $ 26,311,083 $ 21,462,043 $ 306,614,528 $ Liabilities, Deferred Inflows of Resources
and Fund Balances (deficit)
Liabilities
Accounts payable $ 5,930,745 2,047,867 $ 216 $ 49,659 $ 1,181,042 $ 2,040,608 $ 11,250,137 $ Retainages payable 641,186 112,959 - - 239,361 - 993,506 Accrued wages 2,190 314,556 - - - 117,695 434,441Due to other funds 9,713,702 - - 2,861,452 3,876,335 6,278,671 22,730,160 Unearned revenue - - 238,290 - 2,187,750 6,231,957 8,657,997 Total liabilities 16,287,823 2,475,382 238,506 2,911,111 7,484,488 14,668,931 44,066,241 Deferred Inflows of Resources
Unavailable revenues 14,208,113 32,431 9,795,477 15,157,104 25,830,921 4,355,957 69,380,003 Total deferred inflows of resources 14,208,113 32,431 9,795,477 15,157,104 25,830,921 4,355,957 69,380,003 Fund Balances (deficit)
Nonspendable - 1,538,736 - - - - 1,538,736
Restricted:

Debt service - 146,509 - - - - 146,509
Community development - - 4,044,866 - - 10,883 4,055,749 Public safety - - - - 487,360 487,360
Streets and roads - - - - - 4,083,228 4,083,228
Wastewater and drainage - - - - - 4,680,600 4,680,600
Assigned:

PG&E subsequent funds - 209,603,929 - - - - 209,603,929 Measure V - 283,274 - - - - 283,274
Unassigned (16,234,848) 188,233 - (1,835,244) (7,004,326) (6,824,916) (31,711,101) Total fund balances (deficit) (16,234,848) 211,760,681 4,044,866 (1,835,244) (7,004,326) 2,437,155 193,168,284 Total liabilities, deferred inflows of
resources and fund balances (deficit) $ 14,261,088 214,268,494 $ 14,078,849 $ 16,232,971 $ 26,311,083 $ 21,462,043 $ 306,614,528 $ Major Funds
Town of Paradise, California
Balance Sheet - Governmental FundsJune 30, 2025
See notes to financial statements
14 174
Fund Balance, Total Governmental Funds Balance Sheet $ 193,168,284 Amounts reported for governmental activities in the
statement of net position are different because:

Governmental capital assets $ 130,514,612
Less accumulated depreciation/amortization 101,567,981 (28,946,631) Certain notes, loans, claims, intergovernmental and interest receivables are not available to pay for current period expenditures and therefore are offset by deferred inflows of resources in the government funds 69,380,003
Long-term liabilities are not due and payable in the current period and therefore are not reported in the government funds.

Compensated absences (764,035)
Accreted interest payable (3,854,169)
Bonds payable (2,173,303)
Financed purchases payable (11,342)
Net pension liability (30,447,009)
Net OPEB liability (50,268,597) (13,018,739)
Deferred outflows and inflows of resources related to
pensions/OPEB are applicable to future reporting periods, and therefore, are not reported in the funds:

Deferred outflows of resources related to pensions/OPEB 11,807,633 Deferred inflows of resources related to pensions/OPEB 9,251,061 (2,556,572) Net Position of Governmental Activities, Statement of Net Position $ 323,098,732 Town of Paradise, California
Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds June 30, 2025
Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the governmental funds:

See notes to financial statements
15 175
Nonmajor Total
General Camp Fire Loan CalHOME CDBG Grant Governmental Governmental Fund 2018 Fund Funds Grants Fund Funds Funds
Revenues
Taxes and assessments $ - 9,604,630 $ - $ - $ - $ 2,132,105 $ 11,736,735 $ Licenses, permits and impact fees - 347,283 - - - 875,726 1,223,009Fines and forfeitures - 140,790 - - - 105,600 246,390Intergovernmental revenues - 1,011,708 - 2,599,111 17,993,717 2,379,099 23,983,635Investment income - 11,572,735 8,421 78 208,849 37,241 11,827,324Insurance proceeds - 6,565,450 - - - - 6,565,450Charges for services - 511,917 - - - 1,921,256 2,433,173Program income - - 382,749 - - 18,726 401,475Other revenues - 548,679 - - 2,488 366,905 918,072 Total revenues - 30,303,192 391,170 2,599,189 18,205,054 7,836,658 59,335,263 Expenditures
Current:

General government - 4,722,050 - - - 4,913 4,726,963
Community development 138 2,285,759 402,581 4,376,220 13,915,581 5,991,014 26,971,293Public safety - 13,637,835 - - - 25,506 13,663,341Public works 1,022,640 117,914 - - 131,985 191,983 1,464,522Parks and recreation - 81,278 - - - - 81,278Streets - - - - - 1,664,769 1,664,769 Capital outlay 12,831,797 3,596,346 - - 7,685,423 5,401,581 29,515,147Debt service: - Principal - 341,782 - - - 125,896 467,678Interest and fiscal charges - 587,005 - - - 199,171 786,176 Total expenditures 13,854,575 25,369,969 402,581 4,376,220 21,732,989 13,604,833 79,341,167Excess (deficiency) of revenues over (under) expenditures (13,854,575) 4,933,223 (11,411) (1,777,031) (3,527,935) (5,768,175) (20,005,904) Other Financing Sources and (Uses)
Proceeds from sale of capital assets - 10,861 - - - - 10,861 Transfer in 2,714 896,783 - - - - 899,497Transfers out - (2,714) (36,113) (85,772) (28,847) (729,840) (883,286) Total other financing sources and uses 2,714 904,930 (36,113) (85,772) (28,847) (729,840) 27,072Net change in fund balances (13,851,861) 5,838,153 (47,524) (1,862,803) (3,556,782) (6,498,015) (19,978,832) Fund Balances (deficit), Beginning (2,382,987) 205,922,528 4,092,390 27,559 (3,447,544) 8,935,170 213,147,116Fund Balances (deficit), Ending $ (16,234,848) 211,760,681 $ 4,044,866 $ (1,835,244) $ (7,004,326) $ 2,437,155 $ 193,168,284 $ Major Funds
Town of Paradise, California
Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Governmental FundsYear Ended June 30, 2025 See notes to financial statements
16 176
Net Change in Fund Balances (deficit), Total Governmental Funds $ (19,978,832) Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures.

However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense:

Capital outlay $ 29,515,147
Depreciation expense 25,802,717 (3,712,430)
Receipts of payments and disbursements of funds related to notes and loans receivable are reported as revenues and expenditures, respectively, in governmental funds, but an increase and decrease, respectively, in notes receivable in the statement of net position:

Loans made during the year 17,479,741
Some receivables are deferred in the governmental funds because the amounts do not represent current financial resources that are recognized under the accrual basis in the statement of activities. Unavailable receivables in the governmental funds are recognized once received in the subsequent period, but will not be accrued again in the statement of activities:

Unavailable revenue recognized 19,512,582
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the government-wide statement of net position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position:

Accreted interest accrued (389,935)
Accreted interest payments 786,176
Bond principal payments 448,824
Finance purchases principal payments 18,854 863,919
The amounts below, included in the statement of activities, do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in the governmental funds (net change):

Compensated absences (149,034)
Pension expense related to liabilities, deferred outflows and inflows of resources (5,481,444)
Pension contributions 3,431,744
OPEB expense related to liabilities, deferred outflows and inflows of resources (1,480,612)
OPEB contributions (2,659,705) 1,019,641
Change in Net Position of Governmental Activities $ 41,020,422 Town of Paradise, California
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended June 30, 2025
of Governmental Funds to the Statement of Activities
See notes to financial statements
17 177
Successor
Agency Custodial
Trust Fund Funds
Assets
Cash and investments $ 8,666 131,678 $
Restricted cash and investments with fiscal agents - 85,161 Accounts receivable 2,107 -
Total assets 10,773 216,839
Liabilities
Interest payable - 684,176
Due to other governments - 145,768
Due within one year:

Advance from Town General Fund - 1,492,557
Bonds payable - 5,054,576
Total liabilities - 7,377,077
Net Position
Restricted - held in trust - (7,160,238)
Restricted for organizations, individuals, and other governments 10,773 - Total fiduciary net position $ 10,773 (7,160,238) $
Town of Paradise, California
Statement of Fiduciary Net Position
June 30, 2025
See notes to financial statements
18 178
Successor
Agency Custodial
Trust Fund Funds
Additions
Investment earnings $ - 234,748 $
Total additions - 234,748
Deductions
Program and administrative expenses - 13,654
Transfer out to Town General Fund 11 16,200
Interest expense - 917,815
Total deductions 11 947,669
Net increase (decrease) in fiduciary net position (11) (712,921) Net Position (Deficit), Beginning 10,784 (6,447,317)
Net Position (Deficit), Ending $ 10,773 (7,160,238) $
Town of Paradise, California
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2025
See notes to financial statements
19 179
180
Notes to Basic Financial Statements
181
182
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
20 1. Summary of Significant Accounting Policies
The Town of Paradise (the Town) was incorporated in 1979 and is nestled in the foothills of California's Sierra Nevada Mountains. The Paradise Town Council is the chief policy-making body for the Town and is comprised of five members elected at large by the community to four-year staggered terms.

The Town operates under a Town Manager-Council form of government and provides the following services: public safety (Police and Fire), highways and streets, culture-recreation, public improvements, planning and zoning, and general administration. The voters of the Town of Paradise, California, give authority and responsibility for operations to the Town Council. The Town Council has the authority to employ administrative and support personnel to carry out its directives. The primary method used to monitor the performance of the Town's management is the financial budget, which is adopted annually by the Town Council.

The financial statements of the Town have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. In addition, the Town applies all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARB) issued after November 30, 1989 in accordance with GASB Statement Number 62. The more significant of these accounting policies are described below.

Reporting Entity
The Town operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The Town's main funding sources include property taxes, sales taxes, other intergovernmental revenue from state and federal sources, user fees, and federal and state financial assistance.

The financial reporting entity consists of (a) the primary government, the Town, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit's board, and either (a) the Town has the ability to impose its will on the organization or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the Town.

Individual Component Units - Blended
These basic financial statements present the financial status of the Town and its component units, which are included in the Town's reporting entity because of the significance of their operational or financial relationship with the Town. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. The Town's reporting entity includes the following component units:
• Redevelopment Successor Agency Private-Purpose Trust Fund: The Town of Paradise Redevelopment Agency (the Agency) was formed as a separate legal entity under the Community Redevelopment Law. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California. The Town Council elected to become Successor Agency for the redevelopment agency in accordance with the bill. Based upon the nature of the successor agency's custodial role, it is reported as a fiduciary fund private-purpose trust fund.

No separate financial statements were prepared for the Agency. 183
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
21 Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external parties. The Town has no business-type activities.

Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported in separate columns in the fund financial statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs are included in the program expenses of most business-type activities. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Basis of Presentation Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Special assessments are recognized as revenues in the year for which the related capital projects are substantially complete. Grants and similar items are recognized as revenues as soon as eligibility requirements imposed by the grantor or provider have been met.

Fund Financial Statements
The accounts of the Town are organized on the basis of funds. A fund is a separate self-balancing set of accounts. Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions or limitations. Major individual governmental funds are reported as separate columns in the fund financial statements.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, depending on the revenue source.

Expenditures are generally recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds.

Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.
184
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
22 The Town reports the following major governmental funds:

General Fund
The General Fund is the general operating fund of the Town and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds.

Camp Fire 2018 Fund
This special revenue fund accounts for monies collected for the Camp Fire relief program and to assist organizations serving evacuees and first responders.

Loan Fund
This special revenue fund accounts for grants to provide housing loans to qualified homebuyers.

CalHOME Grants Fund
This special revenue fund accounts for housing rehabilitation made with CalHOME grant monies.

CDBG Grant Fund
This special revenue fund accounts for development activities made with CDBG grant monies.

Additionally, the Town reports the following fund types:

Governmental Funds
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The Town has debt service funds, but they are not currently utilizing them.

Capital Project Fund - The Capital Project Funds are used to account for financial resources used for the acquisition or construction of major capital facilities.

Fiduciary Funds
Private-Purpose Trust - Private Purpose Trust funds are used to account for trust arrangements where the principal and income benefit individuals, private organizations, or other governments. Examples include successor agencies for redevelopment agencies.

Custodial Funds - Custodial Funds account for assets held by the Town in a purely custodial capacity. Custodial Funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. 185
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
23 Cash and Cash Equivalents
The Town's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition, including the Town's investment in California Local Agency Investment Fund (LAIF). Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost.

Receivables and Payables
Sales, use and utility user taxes related to the current fiscal year are accrued as revenue and receivables and considered available if received within 60 days of year-end. Property taxes related to the current fiscal year are accrued as revenue and receivables and considered available if received within 60 days of year-end. Federal and State grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and collectible if received within 60 days of year-end.

Transactions between funds that represent lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Property Taxes
The County of Butte (the County) is responsible for the collection and allocation of property taxes.

Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed in accordance with statutory formulas. The Town recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year end. Secured property taxes are levied on or before July 1 of each year. They become a lien on real property on March 1 preceding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, costs, and interest when paid.

The term "unsecured" refers to taxes on personal property other than land and buildings. Property tax revenues are recognized in the fiscal year for which they are levied, provided they are due and collected within 60 days after fiscal year-end. The County apportions secured property tax revenue in accordance with the alternate methods of distribution, the "Teeter Plan," as prescribed by Section 4717 of the California Revenue and Taxation Code. Therefore, the Town receives 100% of the secured property tax levies to which it is entitled, whether or not collected. Unsecured delinquent taxes are considered fully collectible.

These taxes are accrued as intergovernmental receivables only if they are received from the County within 60 days after year-end for the governmental funds and are accrued when earned for government-wide presentation regardless of the timing of the related cash flows. 186
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
24 Capital Assets
Capital assets for governmental fund types of the Town are not capitalized in the funds used to acquire or construct them. Capital acquisitions are reflected as expenditures in the governmental fund, and the related assets are reported in the government-wide financial statements at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value as of the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the current year's additions to governmental capital assets.

Capital assets are depreciated using the straight-line method over the following useful lives:

Years
Buildings and improvements 5 - 25
Infrastructure 20
Machinery, equipment and vehicles 5 - 10
It is the policy of the Town to capitalize all land, building, improvements, equipment, and infrastructure assets, except assets costing less than $5,000. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale. The proceeds reported in the governmental fund are eliminated and the gain or loss on sale is reported in the government-wide presentation.

Compensated Absences
Under GASB Statement No. 101, Compensated Absences, the Town recognizes a liability for leave that has been earned by employees and is more likely than not to be used for time off or otherwise paid or settled in the future. The Town’s policy permits employees to accumulate earned but unused vacation and compensatory time.

In the government-wide financial statements, compensated absences are recognized as a liability when incurred. The portion of the compensated absences liability attributable to governmental activities is reported in the governmental activities column of the government-wide statement of net position.

In the governmental fund financial statements, compensated absences are recognized as expenditures and liabilities only to the extent they are due and payable with available financial resources. Accordingly, amounts not due and payable at year-end are not reported as liabilities in the governmental funds and are included as a reconciling item between the governmental fund financial statements and the government-wide financial statements.

Sick leave generally is not payable upon termination but may be converted to service credits under the Town’s defined benefit pension plan. However, certain employees hired before November 12, 2012, who have at least five years of service and leave employment in good standing are eligible to receive payment for accumulated sick leave in excess of 20 days at one-half of their regular rate of pay, up to a maximum payout of $3,750.

Long-Term Obligations
Long-term debt of governmental funds are reported at face value in the government-wide financial statements and represent a reconciling item between the fund and government-wide presentation.

Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the government-wide financial statements and represent a reconciling item between the fund and government-wide presentation. 187
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
25 For governmental fund types, proceeds from borrowing are reported as another financing source net of the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures.

Deferred Outflows/Inflows of Resources
In addition to liabilities, the statement of financial position reports a separate section for deferred outflows and deferred inflows of resources. Deferred outflows of resources represent a consumption of net assets by the government that is applicable to a future reporting period. Deferred inflows of resources represent an acquisition of net assets that is applicable to a future reporting period. These amounts will not be recognized as an outflow of resources (expenditure/expense) or an inflow of resources (revenue) until the earnings process is complete. The governmental funds report unavailable revenues for grants and other revenues when the amounts meet the asset recognition criteria and were accrued as receivables, but the amounts were not received in the availability period.

Deferred outflows and inflows of resources include amounts deferred related to the Town's pension and OPEB plans as described in the pension plans and other post-employment benefits notes of this report.

Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Commission's California Public Employee's Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

Other Postemployment Benefits (OPEB) Plan
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Town's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Fund Balances - Governmental Funds
Fund balances of the governmental funds are reported separately within classifications based on a hierarchy of the constraints placed on those resources. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The following classifications describe the relative strength of the spending constraints:

Nonspendable - Fund balance should be reported as nonspendable when the amounts cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. Nonspendable balances are not expected to be converted to cash within the next operating cycle, which comprise prepaid items and long-term receivables.

Restricted - Fund balance should be reported as restricted when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.
188
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
26 Committed - Fund balance should be reported as committed when the amounts can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision-making authority, the Town Council. These amounts cannot be used for any other purpose unless the Town Council modifies or removes the fund balance commitment.

Assigned - Fund balance should be reported as assigned when the amounts are constrained by the government's intent to be used for specific purposes but are neither restricted nor committed.

Unassigned - Unassigned fund balance is the residual classification of the Town's funds and includes all spendable amounts that have not been restricted, committed, or assigned to specific purposes.

The government-wide financial statements utilize a net position presentation. Net position is categorized as investment in capital assets (net of related debt), restricted and unrestricted.

Net Investment in Capital Assets - This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position - This category represents net position of the Town not restricted for any project or other purpose.

The Town Council establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution. When both restricted and unrestricted resources are available for use, it is the Town's policy to use restricted resources first, then unrestricted, committed, assigned and unassigned resources as they are needed. The Town's committed, assigned, or unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Budgetary Information
The Town Council annually adopts the budget resolution for all operating funds of the Town.

Budgetary control is legally maintained at the fund level. Department heads submit budget requests to the Town Manager. The Manager prepares an estimate of revenues and prepares recommendations for the next year's budget. The preliminary budget may or may not be amended by the Town Council and is adopted by resolution by the Town Council on or before June 30.

All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

Amounts shown in the financial statements represent the original budgeted amounts and all supplemental appropriations. The supplemental appropriations were immaterial. The budgetary data are prepared on the modified accrual basis consistent with the related "actual amounts", except as indicated below. The Town does not use encumbrance accounting. 189
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
27 Excess Expenditures Over Appropriations
The following funds had excess expenditures over appropriations.

Fund Appropriations
Total
Expenditures
Excess
Expenditures
Major Special Revenue Funds:

Camp Fire 2018 Fund $ 8,652,399 $ 13,854,575 $ (5,202,176) CalHOME Grants 4,314,285 4,376,220 (61,935)
Nonmajor Special Revenue Funds:

Other Grants 230,476 879,232 (648,756)
Home Grant Fund - 149,703 (149,703)
Community Development 1,400 296,575 (295,175)
The Funds are over budget due to increased funding available in those funds.

Fund Deficits
At June 30, 2025, the following governmental funds had a fund balance deficit:

Fund Deficit
General Fund – Capital Outlay $ 2,584,637
Camp Fire 2018 Fund 16,234,848
CalHOME Grants 1,835,244
CDBG Grant Fund 7,004,326
Disaster Recovery Projects 2,572,035
Home Grant Fund 549,491
FEMA Grants 2,846,079
Other Grants 207,587
Capital Projects 649,724
The fund balance deficits are primarily due to the Town incurring costs in advance of receipt of grant revenues and will be eliminated through future revenues and expenditure reductions.

Net investments in capital assets
Net position reported on the government-wide statement of net position at June 30, 2025, includes the following:

Net investment in capital assets:

Land $ 1,882,218
Construction in progress 66,656,971
Other capital assets, net of accumulated depreciation 33,028,792 Less accounts payable related to construction (6,884,511) Less retainages payable (993,506)
Less financed purchase agreements outstanding (11,342)
Total governmental activities net investment in capital assets $ 93,678,622
190
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
28 2. Cash and Investments
The Town follows the practice of pooling cash and investments of all funds. Cash represents cash on hand, demand deposits in the bank and amounts invested in the State of California Local Agency Investment Fund (LAIF). Cash and investments at June 30, 2025 are classified in the accompanying financial statements as follows:

Governmental
Activities
Fiduciary
Funds Total
Cash and cash equivalents $ 209,625,619 $ 140,344 $ 209,765,963 Restricted cash 146,509 85,161 231,670
Total $ 209,772,128 $ 225,505 $ 209,997,633
As of June 30, 2025, the Town's cash and investments consisted of the following:

Cash on hand $ 8,725
Deposits in financial institutions 7,848,683
Investments:

California CLASS prime fund 11,965,551
Local Agency Investment Fund 1,174,815
Commercial paper 9,174,286
Money market mutual funds 325,698
U.S. Treasury 56,290,825
U.S. government agency 32,191,585
Corporate bonds 42,972,233
Supranational 12,188,178
Municipal notes/bonds 28,131,744
Negotiable certificates of deposit 480,858
Mortgage-backed security 7,097,943
Held by fiscal agent money market fund 146,509
Total investments 202,140,225
Total cash and investments $ 209,997,633
191
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
29 Investment Policy
California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the Town by the California Government Code (or the Town's investment policy, where more restrictive) that address interest rate risk, credit risk and concentration of credit risk.

Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment
in One Issuer
Asset backed securities 5 years 20% None
Banker acceptances 180 days 40% 30%
Collateralized bank deposits 5 years Unlimited None
Commercial paper 270 days 25% 10%
Local agency investment funds 5 years Unlimited $50 million Medium term notes 5 years 30% None
Mutual funds 5 years 20% 10%
Certificate of deposits 5 years 30% None
Repurchase agreements 1 year 20% None
Supranational: IBRD, IFC, IADB 5 years 30% None
Treasury bills and notes 5 years Unlimited None
U.S. government, state(s) and agency
securities 5 years Unlimited None
The Town complied with the provisions of California Government Code pertaining to the types of investments held, institutions in which deposits were made and security requirements. The Town will continue to monitor compliance with applicable statutes pertaining to public deposits and investments.

Investments Authorized by Debt Agreements
Investment of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Town's investment policy. The Pension Obligation Bond debt agreement contains certain provisions that address interest rate risk, credit risk and concentration of credit risk.

Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment
in One Issuer
U.S. treasury obligations 5 years None None
U.S. government agency obligations 5 years None None
Municipal obligations None None None
Bankers acceptances 1 year None None
Commercial paper None None None
Certificates of deposit None None None
Money market funds N/A None None
Local agency investment fund None None None
Investment contracts None None None
192
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
30 Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways the Town manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Town's investments (including investments held by the bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Town's investments by maturity:

Remaining Maturity (in Months)
Total
12 Months
or Less
13 to 24
Months
25 to 60
Months
California CLASS Prime Fund $ 11,965,551 $ 11,965,551 $ - $ - Local Agency Investment Fund
(LAIF) 1,174,815 1,174,815 - -
Money market mutual fund 325,698 325,698 - -
Commercial paper 9,174,286 9,174,286 - -
U.S. Treasury 56,290,825 - - 56,290,825
U.S. government agency 32,191,585 10,556,334 2,078,036 19,557,215 Corporate bonds 42,972,233 9,307,070 6,638,935 27,026,228 Supranational 12,188,178 8,841,900 - 3,346,278
Municipal notes/bonds 28,131,744 22,685,835 750,187 4,695,722 Negotiable certificates of
deposit 480,858 - 480,858 -
Mortgage-backed securities 7,097,943 - 7,097,943 -
Held by fiscal agent money
market fund 146,509 146,509 - -
Total $ 202,140,225 $ 74,177,998 $ 17,045,959 $ 110,916,268 193
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
31 Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following are credit ratings issued by Moody's and Standard and Poor's as of June 30, 2025:

Investment Type AAA AA+/AA/AA- A+/A A-1 Total
Money market mutual fund $ 325,698 $ - $ - $ - $ 325,698 Commercial paper - - - 9,174,286 9,174,286
U.S. Treasury - 56,290,825 - - 56,290,825
U.S. government agencies - 32,191,585 - - 32,191,585
Corporate bonds - 42,972,233 - - 42,972,233
Supranational - 12,188,178 - - 12,188,178
Municipal notes/bonds - 28,131,744 - - 28,131,744
Mortgage-backed securities - 7,097,943 - - 7,097,943
Held by fiscal agent money
market fund 146,509 - - - 146,509
Total $ 472,207 $ 178,872,508 $ - $ 9,174,286 188,519,001 Investments not subject to
credit risk disclosure:

LAIF 1,174,815
California CLASS Prime Fund 11,965,551
Total 13,140,366
Exempt from credit rating
disclosure:

Negotiable certificates of
deposit 480,858
Total investments $ 202,140,225
Concentration of Credit Risk
The investment policy of the Town contains no limitations on the amount that can be invested with any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer represent more than 5% of the total investments (other than mutual funds and external investment pools) are as follows as of June 30, 2025.

Issuer
Investment
Type Amount Percent
Federal Farm Credit Bank
U.S. Agency
Security $ 10,482,300 5.19%
Federal Home Loan Mortgage Corporation
U.S. Agency
Security 15,200,982 7.52
Federal National Mortgage Association
U.S. Agency
Security 16,464,668 8.15
194
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
32 Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the Town's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

At June 30, 2025, the carrying amount of the Town’s deposits in financial institutions was $7,848,683, and the corresponding bank balance was $8,891,858. Of the balance in financial institutions, $500,000 was covered by federal depository insurance and $8,391,858 was covered by the pledging financial institution with assets held in a common pool for the Town and other governmental agencies.

Investment in LAIF
LAIF is stated at amortized cost, which approximates fair value. The LAIF is a special fund of the California State Treasury through which local governments may pool investments. The total fair value amount invested by all Town controlled funds in LAIF is $1,174,815 managed by the State Treasurer. Of that amount, 3% is invested in structured notes and asset-backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The fair value of the Town's investment in this pool is reported in the accompanying financial statements at amounts based upon the Town's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. At June 30, 2025, these investments matured in an average of 217 days.

Investment in the California Cooperative Liquid Assets Securities System The Town is a voluntary participant in the California Cooperative Liquid Assets Securities System (California CLASS). California CLASS is a joint exercise of powers entity authorized under Section 6509.7, California Government Code. California CLASS is a pooled investment option that was created via a joint exercise of powers agreement by and among California public agencies.

The Town’s investment in California CLASS is included in cash and investments in the accompanying financial statements.
195
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
33 Fair Value Measurement
The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, Level 3 inputs are significant unobservable inputs. The table below presents the fair value hierarchy level inputs applicable to each of the Town’s investments:

Fair Value Measurement Using
Amount Level 1 Level 2 Level 3
Investments by fair value level:

Commercial paper 9,174,286 - - 9,174,286
Money market mutual funds 325,698 325,698 - -
U.S. Treasury securities 56,290,825 56,290,825 - -
U.S. government agency
securities 32,191,585 - 32,191,585 -
Corporate bonds 42,972,233 - 42,972,233 -
Supranational securities 12,188,178 - 12,188,178 -
Municipal notes/bonds 28,131,744 - 28,131,744 -
Negotiable certificates of
deposit 480,858 - 480,858 -
Mortgage-backed securities 7,097,943 - 7,097,943 -
Held-by-fiscal-agent money
market fund 146,509 146,509 - -
Total investments by
fair value level $ 188,999,859 $ 56,763,032 $ 123,062,541 $ 9,174,286 Investments not measured at
fair value:

California CLASS Prime Fund 11,965,551
Local Agency Investment
Fund (LAIF) 1,174,815
Total investments not
measured at fair
value 13,140,366
Total Investments 202,140,225

3. Interfund Transactions
Interfund balances at June 30, 2025 were as follows:

Receivable Fund Payable Fund Amount
General Fund Major Governmental Funds:

Camp Fire 2018 $ 9,713,702
CalHOME Grants 2,861,452
CDBG Grants 3,876,335
Nonmajor Governmental Funds 6,278,671
Fiduciary Funds 145,768
$ 22,875,928
196
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
34 Transfers during the year ended June 30, 2025 were as follows:

Fund Making Transfer Fund Receiving Transfers
Amount
Transferred
Major Governmental Funds:

General Fund Camp Fire 2018 $ 2,714
Loan Funds General Fund 36,113
CalHOME Grant Fund General Fund 85,772
CDBG Grant Fund General Fund 28,847
Nonmajor Governmental Funds:

Building Safety and Wastewater
Services General Fund 375,024
Local Transportation General Fund 12,501
Gas Tax General Fund 342,315
Fiduciary Funds:

PD Found Money General Fund 11
Successor Agency Funds General Fund 16,200
$ 899,497

4. Loans Receivable
The Town engages in programs designed to encourage the construction or improvement of low-tomoderate income housing and other qualifying projects. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to use the funds in accordance with the Town’s requirements.

Loans receivable at June 30, 2025, consisted of the following:

Borrower Amount
Homeowners $ 16,816,560
Paradise Community Village 6,532,754
Community Housing Improvement Program 26,110,152
Total governmental activities loan receivable $ 49,459,466 The loans receivable were reported in the following governmental funds at June 30, 2025:

Loan Funds $ 9,795,477
CalHOME Grants Fund 13,835,142
CDBG Grant Fund 25,828,847
Total governmental activities loan receivable $ 49,459,466 Under the modified accrual basis of accounting, these receivables are not considered available to finance current-period expenditures and, accordingly, are offset by deferred inflows of resources in the governmental fund financial statements.
197
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
35 5. Unavailable Revenues
Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At June 30, 2025, the components unavailable revenue reported in the governmental funds were as follows:

Governmental Fund
Unavailable
Revenue –
Housing Loan
Revenue
Unavailable
Revenue –
Grants & Other Total
General Fund $ - $ 32,431 $ 32,431
Camp Fire 2018 Fund - 14,208,113 14,208,113
Loan Funds 9,795,477 - 9,795,477
CalHOME Grants Fund 13,835,142 1,321,962 15,157,104
CDBG Grant Fund 25,828,847 2,074 25,830,921
Nonmajor Governmental Funds - 4,355,957 4,355,957
Total $ 49,459,466 $ 19,920,537 $ 69,380,003
At June 30, 2025, substantially all of the $14,208,113 of unavailable grant revenue reported in the Camp Fire 2018 Fund relates to a receivable for eligible costs incurred under Federal Emergency Management Agency (FEMA) for a Public Assistance Project to rehabilitate Town roadways damaged by heavy truck traffic during Camp Fire debris removal and hazardous tree removal activities. 198
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
36 6. Capital Assets
Governmental capital assets activity for the year ended June 30, 2025 was as follows:

Beginning
Balance Additions Retirements Transfers
Balance
Ending
Capital assets, not being
depreciated:

Land $ 1,845,010 $ 37,208 $ - $ - $ 1,882,218
Construction in progress 38,117,815 28,539,156 - - 66,656,971 Total capital assets, not
being depreciated 39,962,825 28,576,364 - - 68,539,189
Capital assets, being
depreciated:

Infrastructure 45,798,343 - - - 45,798,343
Buildings 5,156,176 42,587 - - 5,198,763
Machinery and equipment 3,679,070 216,799 (22,253) - 3,873,616 Vehicles 6,492,274 679,397 (66,970) - 7,104,701
Total capital assets, being
depreciated 61,125,863 938,783 (89,223) - 61,975,423
Less accumulated depreciation
for:

Infrastructure (16,959,991) (2,237,973) - - (19,197,964) Buildings (2,079,106) (197,106) - - (2,276,212)
Machinery and equipment (2,304,823) (434,948) 22,253 - (2,717,518) Vehicles (3,979,504) (842,403) 66,970 - (4,754,937)
Total accumulated
depreciation (25,323,424) (3,712,430) 89,223 - (28,946,631) Capital assets being
depreciated, net 35,802,439 (2,773,647) - - 33,028,792
Governmental capital
assets, net $ 75,765,264 $ 25,802,717 $ - $ - $ 101,567,981 Depreciation expense for governmental capital assets was charged to functions as follows:

General government $ 241,931
Public safety 896,830
Streets and public works 2,396,364
Parks and recreation 177,305
Total governmental activities depreciation expense $ 3,712,430 199
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
37 7. Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2025 was as follows:

Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Governmental activities:

Bonds payable $ 2,622,127 $ - $ (448,824) $ 2,173,303 $ 439,091 Accreted interest payable 4,250,410 389,935 (786,176) 3,854,169 840,909 Finance purchase
agreements 30,196 - (18,854) 11,342 9,084
Total debt 6,902,733 389,935 (1,253,854) 6,038,814 1,289,084 Compensated absences 615,001 149,034 - 764,035 469,891
Net pension liability 30,790,448 - (343,439) 30,447,009 - OPEB liability 13,124,624 - (105,885) 13,018,739 -
Governmental
activities long-term
liabilities $ 51,432,806 $ 538,969 $ (1,703,178) $ 50,268,597 $ 1,758,975 Note: The change in the compensated absences liability is presented as a net change in accordance with GASB 101.

Long-term debt of the Town's governmental activities consists of the following as of June 30, 2025:

Bonds Payable
On April 1, 2007, the Town pursuant to an Agreement with the California Statewide Communities Development Authority issued $10,918,154 of Pension Obligation Bonds. The aggregate total amount of the bonds for all agencies was $87,475,699 which includes $65,140,000 of Series A-1 current interest and $22,335,699 of Series A-2 capital appreciation bonds. The Town only participated in the Series A-2 bonds. The issuance of the bonds provided monies to meet the Town's obligation to pay the Town's unfunded accrued actuarial liability (UAAL) and employer contribution amount to the California Public Employees Retirement System (PERS). The Town's obligation includes, among others, the requirement to amortize the unfunded accrued liability over a multi-year period. On April 1, 2007, the Town contributed $10,635,313 of the bond proceeds to PERS to fund a portion of the unfunded liability and the employer contribution amount for the Miscellaneous and Safety Plans that provides retirement benefits to the Town's employees and public safety officers. The Town paid costs of issuance fees of $282,841.

Interest on Series A-2 capital appreciation bonds is payable on June 1 and December 1. The rate of interest varies from 5.160% to 5.694% per annum. Principal payment in annual installments ranging from $238,761 to $648,234 commencing on June 1, 2010 and ending on June 1, 2031. The balance outstanding as of June 30, 2025 was $2,173,303. The accreted interest on the capital appreciation bonds balance as of June 30, 2025 was $3,854,169.
200
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
38 Principal and interest payments on bonds are due as follows:

Principal Interest * Total
Years ending June 30:
2026 $ 439,091 $ 840,909 $ 1,280,000
2027 428,181 891,819 1,320,000
2028 416,296 943,704 1,360,000
2029 406,621 998,379 1,405,000
2030 244,353 650,647 895,000
Thereafter 238,761 686,239 925,000
Totals $ 2,173,303 $ 5,011,697 $ 7,185,000
* The amount includes accreted interest.

Finance Purchase Agreement
The Town has entered into various finance purchase agreements for financing the acquisition of capital assets. Finance purchase agreements include the following:

Axon Enterprises - During the fiscal year 2020-2021, the Town entered into an agreement to finance tasers and related hardware and accessories. The total amount of the contract is $52,485, with an implicit interest rate of 4.50%. The contract will be paid in four installments of $10,861 through December 1, 2024.

De Lage Landen Public Finance - During the fiscal year 2020-2021, the Town entered into a finance purchase contract for eight printers. The total amount of the contract is $41,937, with an implicit interest rate of 4.50%. The contract will be paid by 60 monthly payments of $781.25.

Principal and interest payments on the finance purchase agreements are due as follows:

Principal Interest Total
Years ending June 30:
2026 $ 9,084 $ 291 $ 9,375
2027 2,258 9 2,267
Totals $ 11,342 $ 300 $ 11,642

8. Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the Town's costsharing multiple-employer defined benefit pension plan (the Plan or PERF C) administered by the California Public Employees' Retirement System (CalPERS). PERF C consists of a miscellaneous risk pool and a safety risk pool and the following rate plans:
• Town Miscellaneous Plan Classic Tier 1
• Town Miscellaneous Plan Classic Tier 2
• Town Miscellaneous PEPRA
201
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
39 • Safety Plan Classic Tier 1
• Safety Plan Classic Tier 2
• Safety Plan PEPRA
Although one pension plan exists, CalPERS provides the information separately for the Miscellaneous and Safety Risk Pools and the information is presented separately where available.

Benefit provisions under the Plan is established by State statute and Town resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 (57 for PEPRA Miscellaneous Plan) with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service.

The death benefit is the Optional Settlement 2 Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Plan's provisions and benefits in effect at June 30, 2025, are summarized as follows:

Town
Miscellaneous
Classic Tier 1
Town
Miscellaneous
Classic Tier 2
Town
Miscellaneous
PEPRA
Prior to
January 1, 1982
On or After
January 1, 1982
On or After
January 1, 2013
Benefit formula (at full retirement) 2.0% @ 55 2.0% @ 60 2.0% @ 62 Benefit vesting schedule 5 years' service 5 years' service 5 years' service Benefit payments Monthly for life Monthly for life Monthly for life Final average compensation period One year Three years Three years Retirement age 50 - 63 50 - 63 52 - 67
Monthly benefits, as a % of eligible
compensation 1.426% - 2.418% 1.426% - 2.418% 1.00% - 2.50% Required employee contribution rates 7.00% 7.00% 7.75%
Required employer contribution rates 12.47% 10.10% 7.68% Safety
Classic Tier 1
Safety
Classic Tier 2
Safety
PEPRA
Prior to
January 1, 2013
On or After
January 1, 2013
On or After
January 1, 2013
Benefit formula (at full retirement) 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years' service 5 years' service 5 years' service Benefit payments Monthly for life Monthly for life Monthly for life Final average compensation period Three years Three years Three years Retirement age 50 50 - 57 50 - 55
Monthly benefits, as a % of eligible
compensation 3.00% 2.00% - 2.70% 2.00% - 2.70%
Required employee contribution rates 9.00% 9.00% 13.75% Required employer contribution rates 27.11% 22.83% 13.54% 202
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
40 The Miscellaneous Plan & Safety is closed to new participants that were not CalPERS participants prior to January 1, 2013 under the Public Employees' Pension Reform Act of 2013 (PEPRA). Any new participants that were not previously CalPERS participants would be required to join the PEPRA Miscellaneous Plan.

Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Town is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2025, the employer contributions made to the Plan were $3,431,744.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the Town reported a net pension liability for its proportionate share of the net pension liability as follows:

Proportionate
Share of
Net Pension
Liability/Asset
Town Miscellaneous Risk Pool $ 8,479,538
Safety Risk Pool 21,967,471
Total net pension liability $ 30,447,009
The Town's net pension liability is measured as the proportionate share of the net pension liability.

The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The Town's proportion of the net pension liability was based on a projection of the Town's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Town's proportionate share of the net pension liability for the Plan as of June 30, 2025 and 2024 was as follows:

Miscellaneous
Plan
Safety
Plan
Proportion - June 30, 2024 0.17055 % 0.29782 %
Proportion - June 30, 2025 0.17532 0.30130
Change - increase (decrease) 0.00477 0.00348
203
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
41 For the year ended June 30, 2025, the Town recognized a pension expense of $1,659,096 for the Miscellaneous Plan and $3,822,339 for its Safety Plan. At June 30, 2025, the Town reported deferred outflows of resources and deferred inflows of resources related to the Plan combined from the following sources:

Town Miscellaneous Risk Pool
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 1,229,176 $ - Net differences between projected and actual earnings on plan investments 488,157 -
Difference between employers and proportionate share of contributions 183,116 (39,536)
Difference between expected and actual experience 733,134 (28,606) Change in employer's proportion 27,698 (100,944)
Changes of assumptions 217,942 -
Total $ 2,879,223 $ (169,086)
Safety Risk Pool
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 2,202,568 $ - Net differences between projected and actual earnings on plan investments 1,061,807 -
Difference between employers and proportionate share
of contributions 394,931 (192,732)
Difference between expected and actual experience 1,792,741 (58,290) Change in employer's proportion 52,339 (470,513)
Changes of assumptions 541,233 -
Total $ 6,045,619 $ (721,535)
Total - all risk pools $ 8,924,842 $ (890,621)
The $3,431,744 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other amounts reported as net deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous
Risk Pool
Safety
Risk Pool Total
Fiscal years ended June 30:
2026 $ 471,859 $ 1,119,109 $ 1,590,968
2027 1,140,122 2,408,774 3,548,896
2028 36,265 (43,064) (6,799)
2029 (167,285) (363,302) (530,587)
Total $ 1,480,961 $ 3,121,517 $ 4,602,478
204
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
42 Actuarial Assumptions
The total pension liabilities in the actuarial valuations for the Plan were determined using the following actuarial assumptions:

Actuarial valuation date June 30, 2023
Measurement date June 30, 2024
Actuarial cost method Entry age normal
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Projected salary increase Varies by entry age and service Mortality rates Derived using CalPERS Membership Data
for all Funds
The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details on this table, please refer to the December 2021 experience study report (based on CalPERS demographic data from 1997 to 2019) that can be found on the CalPERS website.

Discount Rate
The discount rate used to measure the total pension liability was 6.90% for the Plan, which remained the same as the prior year rate of 6.90%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.

Based on the testing, none of the tested plans run out of assets. Therefore, the current discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate is applied to all plans in the Public Employees Retirement Fund (PERF).

The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11 to 60 years) using a building-block approach.

Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
205
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
43 The table below reflects the long-term expected real rate of return by asset class for the Plan. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Asset Class
New
Strategic
Allocation
Real Return
Years
1 - 10(a)
Global Equity - cap-weighted 30.0 % 4.54 %
Global Equity - noncap-weighted 12.0 3.84
Private Equity 13.0 7.28
Treasury 5.0 0.27
Mortgage-Backed Securities 5.0 0.50
Investment Grade Corporates 10.0 1.56
High Yield 5.0 2.27
Emerging Market Debt 5.0 2.48
Private Debt 5.0 3.57
Real Assets 15.0 3.21
Leverage (5.0) (0.59)
Total 100 %
(a) An expected inflation of 2.3% used for this period.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Town's proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the Town's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous
Risk Pool
Safety
Risk Pool Total
1% Decrease Net Pension Liability $ 12,748,828 $ 30,829,077 $ 43,577,905 Current Discount Rate Net Pension
Liability 8,479,538 21,967,471 30,447,009

1.0% Increase Net Pension Liability 4,965,284 14,719,924 19,685,208

9. Other Post Employment Benefits (OPEB)
Plan Description
The post-employment benefit plan is a single-employer defined healthcare plan administered by the Town. The Town provides postretirement medical benefits, as provided for in various collective bargaining agreements for retirees that meet certain criteria. Upon enrollment in the PERS medical program, health plans for employees retiring after enrollment shall be in accordance with PERS medical program regulations. Employees of the Town, who immediately upon termination, retire under the PERS retirement plan, and remain in the Town's medical plan, shall have a Town paid contribution towards the medical plan premium not to exceed the Town contribution to an active employee/employee plus spouse/employee plus two persons rate as prescribed in Town Resolution and PERS Health Plan Regulations.
206
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
44 The Town of Paradise participates in the Self-Insured Schools of California (SISC) Trust (the Plan) to pre-fund Other Post-employment Benefits (OPEB) liabilities reported in accordance with the Governmental Accounting Standards Board (GASB), and as specified in the Town policies and/or bargaining agreements. The SISC has made the program available to the Town and its eligible employees a Trust Fund known as the SISC Trust. The Trust Fund is intended to be a tax-exempt governmental trust established under Internal Revenue Section 115 and an irrevocable trust under applicable law of the State of California.

Employees Covered
As of the June 30, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms under the Health Plan:

Inactive employees or beneficiaries currently receiving benefit payments 80
Active employees 83
Total 163
Contributions
The Town funds the Plan on a pay-as-you-go basis. For the year ended June 30, 2025, the Town paid $845,849 on behalf of retirees and made implicit subsidy payments of $173,792. The Town did not contribute to the trust.

Net OPEB Liability
The Town's net OPEB liability (NOL) was measured as of June 30, 2024 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 based on the following actuarial methods and assumptions:

Funding method Entry Age Normal Cost, level percent pay Asset valuation method Market value of assets
Long-term return on assets 6.50%
Discount rates 4.11%
Participants valued
Only current active employees and retired
participants and covered dependents are valued.

No future entrants are considered in this valuation.

Employees with no current medical coverage are
assumed to elect PERS Choice upon retirement,
with no dependents.

Service retirement rates
Retirement rates for nonsafety employees are taken
from the 2014 CalPERS OPEB Assumptions
Model for "Public Agency Miscellaneous 2.0% at
55" For police employees, retirement rates are
taken from the CalPERS "Police with 3.0% at 50"
table.

Benefit cap increases
Benefit caps for all employees are assumed to
remain unchanged in future years
General inflation rate 2.30% per annum
Payroll growth 2.80%
Mortality improvement Based on CalPERS rates
Healthcare trend rate Based on medical long-term trends from Society of Actuaries "Long-Term Healthcare Cost Trends
2023" using baseline assumptions applied to both
claims and premiums through 2023 followed by

6.80% (Pre-Medicare)/4.17% (Medicare) in 2023,
decreasing gradually to an ultimate rate of 4.14%.
207
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
45 Discount Rate
The discount rate used to measure the total OPEB liability was 4.11%. The discount rate used is up to the expected long-term rate of return on the assets in the Trust set aside pay benefits, of the plan sponsor makes regular contributions to the Trust such that the assets are not depleted at any point in the future. If the Plan's actuary determines that contributions are not sufficient to keep the Trust funded, a blend of the long-term rate of return and the yield or index rate for 20-year, tax exempt municipal bonds will be used for the periods when the Trust funds are not sufficient to cover benefit payments. Based on this requirement, and with approval of the plan sponsor.

Changes in Actuarial Assumptions
The discount rate increased from 3.89% to 4.11%. Payroll growth, mortality and retirement rates have been updated. Health care trend rates were updated to actual premium increases from 2022 to 2023 followed by 6.80% (non-Medicare) and 4.17% (Medicare), decreasing gradually to 4.14% in 2075. In addition, the Town signed a Memorandum of Understanding in June 2022 that increases the Town's maximum employee subsidy from nonsafety employees to the same level as safety employees.

Changes in the Net OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability (Asset)
(c) = (a) - (b)
Balances at June 30, 2024 $ 13,406,267 $ 281,643 $ 13,124,624 Service cost 548,957 548,957
Interest cost 526,862 526,862
Investment income 30,184 (30,184)
Difference between expected and
actual experience (48,982) (48,982)
Changes in assumptions (280,686) (280,686)
Employer contributions 822,432 (822,432)
Benefit payments (822,432) (822,432) -
Administrative expenses (580) 580
Net changes (76,281) 29,604 (105,885)
Balances at June 30, 2025 $ 13,329,986 $ 311,247 $ 13,018,739 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following represents the net OPEB liability of the Town, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2024:
1% Decrease
(3.11%)
Current
Discount Rate
(4.11%)
1% Increase
(5.11%)
Net OPEB liability $ 14,377,518 $ 13,018,739 $ 11,856,192 208
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
46 Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following represents the net OPEB liability of the Town, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2024:
1% Decrease
(5.80%)
Current
Discount Rate
(6.80%)
1% Increase
(7.80%)
Net OPEB liability $ 12,701,535 $ 13,018,739 $ 13,358,645 Recognition of Deferred Outflows and Deferred Inflows of Resources:

Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expenses.

The recognition period differs depending on the source of the gain or loss. The net difference between projected and actual earnings on OPEB plan investments is recognized over 5 years. All other amounts are recognized over the expected average remaining service lifetime (EARSL), which was 6.4 years at June 30, 2024.

OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the Town recognized OPEB expense of $1,480,612. As of fiscal year ended June 30, 2025, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Outflows of
Resources
Inflows of
Resources
OPEB contributions subsequent to measurement date $ 1,019,641 $ Differences between actual and expected experience 1,066,821 (128,528) Changes in assumptions 796,329 (1,529,804)
Net differences between projected and actual earnings on OPEB plan investments - (7,619)
Total $ 2,882,791 $ (1,665,951)
The $1,019,641 reported as deferred outflows of resources related to contributions subsequent to the measurement will be recognized as a reduction of the net OPEB liability in the subsequent fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as follows:

Years ending June 30:
2026 $ 480,778
2027 (218,461)
2028 (228,024)
2029 152,473
2030 31,029
Thereafter (20,596)
Total $ 197,199
209
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
47 10. Insurance
The Town is a member of the Northern California Cities Self Insurance Fund (NCCSIF) along with twenty other northern California cities. The NCCSIF is a joint powers authority (JPA) organized in accordance with Article I, Chapter 5, Division 7, Title I of the California Government Fund Programs. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers' compensation benefits for their employees and to provide excess liability insurance. The NCCSIF provides claims processing administrative services, risk management services and actuarial studies.

A member from each city or town governs the NCCSIF. The Town of Paradise council members do not have significant oversight responsibility, since they evenly share all factors of responsibility with the other cities. The Town does not retain the risk of loss. However, ultimate liability for payment of claims and insurance premiums resides with member cities. The NCCSIF is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities.

If the JPA becomes insolvent, the Town is responsible only to the extent of any deficiency in its equity balance.

Coverage Excess
Banking Layer/
Shared Layer
Liability $ 40,000,000 $
1,250,000 to 7,500,000
7,500,000 to 40,000,000 $ 50,000 / 1,250,000
Property 1,000,000,000 - 25,000
Boiler and machinery 100,000,000 - 25,000
Wildfire deductible - - 2,500,000
Mobile equipment 5,945,925 - 5,000
Workers compensation liability
5,000,000 to
Statutory
500,000 to 5,000,000
5,000,000 to Statutory 100,000 / 500,000
Cyber excess
2M/4M 25,000,000
program aggregate - 25,000
Crime 3,000,000 - 5,000
Deadly Weapon Response Program
500,000 with a pool
aggregate of
2,500,000 - 10,000
The NCCSIF establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency, and other economic and social factors.

A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made.

Settlements have not exceeded the insurance coverage for the past three fiscal years. There have not been any significant reductions in insurance coverage over the prior year. The audited financial statements of the JPA are available at the NCCSIF's office.

11. Commitments and Contingencies
The Town participates in various federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. The audits by the grantors for the year ended June 30, 2025, have not yet been conducted. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the Town expects such amounts, if any, to be immaterial.
210
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
48 The Town has the following contract commitments at June 30, 2025:
2024 On System Road Rehabilitation $ 624,019
2025 Off System Road Rehabilitation 7,352,158
2025 On System Road Rehabilitation - Misc 9,459,665
2025 On System Road Rehabilitation-Clark Road 7,302,427 2026 Off System Road Rehabilitation 6,683,105
Camp Fire Hydrant Repair 619,968
Off System Road Rehabilitation 1,606,708
Off System Road Rehabilitation - Engineering 549,844
Oliver Curve 3,793,275
On System Road Rehabilitation - Engineering 1,205,246
Pentz Parkway - Right of Way Services 950,845
Pentz Road 140,691
Sewer 13,178,230
Sewer - Engineering 1,355,805
Skyway Neal Bike 2,896,186
Upper Skyway Widening 520,888
Total $ 58,239,060

12. Successor Agency Trust for Former Paradise Development Agency In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, as amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

Under the provisions of AB 1484, the Town elected to become the Successor Agency and the Redevelopment Agency's remaining assets were distributed to and liabilities were assumed by the Successor Agency. ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established in April 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members, including one member of the Town Council, one former Redevelopment Agency employee appointed by the Mayor and the remaining members are appointed by external agencies with an interest in Successor Agency assets. Pursuant to Senate Bill 107, on July 1, 2018, a single consolidated County Oversight Board was established for the four Town Oversight Boards.

The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The Town provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency, including paying debt service payments of existing Redevelopment Agency debt agreements including those owed to the Town's General Fund in the form of advances. 211
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
49 The following disclosures of the Successor Agency as of June 30, 2025 are required by debt continuing disclosure requirements.

Long-Term Liabilities
The following is a summary of changes in the Successor Agency's long-term liabilities for the year ended June 30, 2025:

Balance
July 1, 2024 Additions Retirements
Balance
June 30, 2025
Due Within
One Year
Advance from General Fund $ 1,275,519 $ 217,038 $ - $ 1,492,557 $ 1,492,557 Bonds payable - 2009 3,975,000 - (300,424) 3,674,576 3,674,576 Bonds payable - 2016 1,380,000 - - 1,380,000 1,380,000
$ 6,630,519 $ 217,038 $ (300,424) $ 6,547,133 $ 6,547,133 The long-term liabilities consisted of the following components for the fiscal year ended June 30, 2025:

Advance payable consisted of advances totaling $1,492,557 from the General Fund to the Successor Agency to assist the Successor Agency with administrative, operation, and program costs. The interest rate on this advance is 4.50%. These loans were approved by the Oversight Board as enforceable obligations. No payments have been made since fiscal year 2018/19.

Bonds payable consisted of the following as of June 30, 2025:
2009 Tax Allocation Refunding Bonds
On October 21, 2009, the Town issued the 2009 Tax Allocation Refunding Bonds in the amount of $4,480,000. The refunding bond was used to refund the entire outstanding 2003 Tax Allocation Notes and the 2005 Tax Allocation Notes. The Refunding Bonds have a stated interest rate from

4.80% to 6.00% and mature on June 1, 2043. The Refunding Bonds are subject to redemption prior to their stated maturity, at the option of the Town, as a whole or in part pro rata among maturities and by lot within a maturity, on any date on or after June 1, 2019 from bonds derived by the Town from any sources at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the redemption date, without premium. The original issue bond discount on these bonds is being amortized over the life of the bonds and is included with long-term debt on the balance sheet.

On February 1, 2012, the total principal balance of $4,377,893, which was net of the $102,107 of unamortized original issue bond discount, was transferred from the Town. The principal balance outstanding, as of June 30, 2025 was $3,674,576.
2016 Tax Allocation Refunding Bonds
On October 27, 2016, the Town issued the 2016 Tax Allocation Refunding Bonds in the amount of $1,475,000. The refunding bond was used to refund the entire outstanding 2006 Tax Allocation Notes. The Refunding Bonds have a stated interest rate from 3.8% to 4.13% and mature on June 1, 2056.

The Refunding Bonds will be subject to option redemption, as a whole or in part from maturities specified by the Successor Agency, prior to their maturity, at the option of the Successor Agency on any date on or after June 1, 2026, from funds derived by the Successor Agency from any source, at a redemption price equal to 100% of the principal amount of the 2016 Refunding Bonds to be redeemed, together with interest accrued thereon to the date fixed for redemption, without premium.
212
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
50 The 2016 Refunding Bonds maturing on June 1, 2031, June 1, 2036, June 1, 2046, and June 1, 2056 shall be subject to redemption prior to their stated maturity, in part on a pro rata basis, from sinking installments deposited in the principal account on June 1 of each year commencing June 1, 2018, June 1, 2032, June 1, 2037 and June 1, 2047, respectively, at the principal amount thereof and interest accrued thereon to the date fixed for redemption, without premium.

Default on Bonds
As outlined in the 2022 Annual Continuing Disclosure Information Statement for the 2009 Bonds and the 2016 Bonds, tax revenues for fiscal years 2022-23 and thereafter are projected to be insufficient to pay debt service on the 2009 Bonds and the 2016 Bonds due to the destruction of properties located in the Project Area by the Camp Fire in 2018. As a result, the amount on deposit in the reserve fund for the 2009 Bonds were deemed insufficient to pay the full amount of the principal and interest coming due and payable on the 2009 Bonds starting on June 1, 2023, and the amount on deposit in the reserve fund for 2016 Bonds were deemed insufficient to pay the full amount of the principal and interest coming due and payable on the 2016 Bonds starting on June 1, 2023. The Agency began making payments on the 2009 Bonds during fiscal year 2024/25 and must complete all payments on the 2009 Bonds before making payments on the 2016 bonds. As a result, the bonds are reported as currently due and payable. It is important to note that these financial obligations are solely those of the Paradise Redevelopment Agency and are not obligations of the Town of Paradise.

Scheduled future debt service for Successor Agency at June 30, 2025 is as follows:
2009 Tax Allocation Refunding Bonds
Principal Interest Total
Fiscal years ending June 30:
2026 $ 110,000 $ 217,988 $ 327,988
2027 110,000 211,088 321,088
2028 120,000 203,900 323,900
2029 125,000 196,138 321,138
2030 135,000 187,800 322,800
2031-2035 805,000 792,000 1,597,000
2036-2040 1,055,000 491,400 1,546,400
2041-2045 1,214,576 109,500 1,324,076
Totals $ 3,674,576 * $ 2,409,814 $ 6,084,390
*Total principal payable at June 30, 2025 is current due to being in default. 213
Town of Paradise, California
Notes to Financial Statements
June 30, 2025
51 2016 Tax Allocation Refunding Bonds
Principal Interest Total
Fiscal years ending June 30:
2026 $ 25,000 $ 52,869 $ 77,869
2027 25,000 51,919 76,919
2028 25,000 50,969 75,969
2029 25,000 50,019 75,019
2030 25,000 49,069 74,069
2031-2035 145,000 230,044 375,044
2036-2040 180,000 199,694 379,694
2041-2045 215,000 161,181 376,181
2046-2050 265,000 113,788 378,788
2051-2055 320,000 55,069 375,069
2056-2058 130,000 2,888 132,888
Totals $ 1,380,000 $ 1,017,509 $ 2,397,509
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semiannually that contains all proposed expenditures for the subsequent six- month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The Town expects such amounts, if any, to be immaterial.

13. Concentration of Financial Resource Providers - 2018 Camp Fire On November 8, 2018, the Camp Fire caused widespread destruction throughout the Town of Paradise.

The resulting reduction in the Town’s tax base and related tax revenues has increased the Town’s reliance on federal, state, and other intergovernmental grant funding to support its continuing recovery and reconstruction activities. This assistance has been provided principally by the Federal Emergency Management Agency (FEMA) and the State of California.

In fiscal years 2019 and 2020, the State of California advanced $8.5 million to the Town in connection with a FEMA Public Assistance claim. The full amount of the advance had been recognized as revenue before June 30, 2025; therefore, no related advance balance remained at year-end.

At June 30, 2025, the Town reported $14,208,113 in intergovernmental receivables related to Camp Fire recovery activities. Because these amounts were not collected within the Town’s period of availability, a corresponding $14,208,113 was reported as a deferred inflow of resources, unavailable revenue, in the governmental fund financial statements. The related revenue was recognized in the government-wide financial statements.
214
Required Supplementary Information
215
216
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes and assessments $ 9,108,003 9,108,003 $ 9,604,630 $ 496,627 $ Licenses, permits and impact fees 316,750 316,750 347,283 30,533 Fines and forfeitures 31,125 31,125 140,790 109,665
Intergovernmental revenues 33,050 52,527 1,011,708 959,181 Investment income 3,230,940 3,230,940 11,572,735 8,341,795 Insurance proceeds - 100,000 6,565,450 6,465,450
Charges for services 292,764 292,764 511,917 219,153
Other revenues 322,000 322,000 548,679 226,679
Total revenues 13,334,632 13,454,109 30,303,192 16,849,083 Expenditures
Current:

General government 6,557,409 6,557,409 4,722,050 1,835,359 Community development 2,495,934 2,948,094 2,285,759 662,335 Public safety 14,331,308 15,247,723 13,637,835 1,609,888 Public works 990,590 1,024,295 117,914 906,381
Parks and recreation 99,230 99,230 81,278 17,952
Capital outlay 999,073 1,011,709 3,596,346 (2,584,637)
Debt service:

Principal 459,685 459,685 341,782 117,903
Interest and fiscal charges 786,177 786,177 587,005 199,172 Total expenditures 26,719,406 28,134,322 25,369,969 2,764,353 Excess (deficiency) of
revenues over (under)
expenditures (13,384,774) (14,680,213) 4,933,223 19,613,436 Other Financing Sources
Proceeds from sale of capital assets - - 10,861 10,861
Transfers in 883,305 883,305 968,708 85,403
Transfers out - - (74,639) (74,639)
Total other financing sources 883,305 883,305 904,930 21,625 Net change in fund balances (12,501,469) (13,796,908) 5,838,153 19,635,061 Fund Balances, Beginning 191,974,963 192,352,537 205,922,528 13,569,991 Fund Balances, Ending $ 179,473,494 $ 178,555,629 $ 211,760,681 $ 33,205,052 Budgeted Amounts
Town of Paradise, California
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2025
Required Supplementary Information
General Fund
52 217
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental revenues $ 8,639,189 8,639,189 $ - $ (8,639,189) $ Total revenues 8,639,189 8,639,189 - (8,639,189)
Expenditures
Current:

Community development - - 138 (138)
Public works 8,652,399 8,652,399 1,022,640 7,629,759
Capital outlay - - 12,831,797 (12,831,797)
Total expenditures 8,652,399 8,652,399 13,854,575 (5,202,176) Excess of revenues over
(under) expenditures (13,210) (13,210) (13,854,575) (13,841,365) Other Financing Sources (Uses)
Transfers in 13,210 13,210 2,714 (10,496)
Total other financing sources 13,210 13,210 2,714 (10,496) Net change in fund balances - - (13,851,861) (13,851,861) Fund Balances, Beginning (2,382,987) (2,382,987) (2,382,987) - Fund Balances, Ending $ (2,382,987) (2,382,987) $ (16,234,848) $ (13,851,861) $ Town of Paradise, California
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2025
Budgeted Amounts
Camp Fire 2018 Fund
53 218
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Investment income $ - $ - $ 8,421 $ 8,421
Program income 443,449 443,449 382,749 (60,700)
Total revenues 443,449 443,449 391,170 (52,279)
Expenditures
Current:

Community development 1,448,000 1,448,000 402,581 1,045,419 Total expenditures 1,448,000 1,448,000 402,581 1,045,419 Excess of revenues over
(under) expenditures (1,004,551) (1,004,551) (11,411) 993,140 Other Financing Sources (Uses)
Transfers out (33,104) (33,104) (36,113) (3,009)
Total other financing sources (33,104) (33,104) (36,113) (3,009) Net change in fund balances (1,037,655) (1,037,655) (47,524) 990,131 Fund Balances, Beginning 4,092,390 4,092,390 4,092,390 - Fund Balances, Ending $ 3,054,735 3,054,735 $ 4,044,866 $ 990,131 $ Town of Paradise, California
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2025
Budgeted Amounts
Loan Funds
54 219
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental revenues $ 4,231,521 4,231,521 $ 2,599,111 $ (1,632,410) $ Investment income - - 78 78
Total revenues 4,231,521 4,231,521 2,599,189 (1,632,332) Expenditures
Current:

Community development 4,314,285 4,314,285 4,376,220 (61,935) Total expenditures 4,314,285 4,314,285 4,376,220 (61,935) Excess of revenues over
(under) expenditures (82,764) (82,764) (1,777,031) (1,694,267) Other Financing Sources (Uses)
Transfers out - - (85,772) (85,772)
Total other financing sources - - (85,772) (85,772)
Net change in fund balances (82,764) (82,764) (1,862,803) (1,780,039) Fund Balances, Beginning 27,559 27,559 27,559 -
Fund Balances, Ending $ (55,205) (55,205) $ (1,835,244) $ (1,780,039) $ Town of Paradise, California
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Year Ended June 30, 2025
Budgeted Amounts
CalHOME Grants
55 220
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues
Intergovernmental revenues $ 58,943,843 $ 60,070,597 $ 17,993,717 $ (42,076,880) Investment income - - 208,849 208,849
Reimbursements 59,988 59,988 - (59,988)
Other revenues - - 2,488 2,488
Total revenues 59,003,831 60,130,585 18,205,054 (41,925,531) Expenditures
Current:

Community development 30,296,144 30,296,144 13,915,581 16,380,563 Public works 28,647,699 29,774,453 131,985 29,642,468
Capital outlay - - 7,685,423 (7,685,423)
Total expenditures 58,943,843 60,070,597 21,732,989 38,337,608 Excess of revenues over
(under) expenditures 59,988 59,988 (3,527,935) (3,587,923) Other Financing Sources (Uses)
Transfers out - - (28,847) (28,847)
Total other financing sources - - (28,847) (28,847)
Net change in fund balances 59,988 59,988 (3,556,782) (3,616,770) Fund Balances, Beginning (3,447,544) (3,447,544) (3,447,544) - Fund Balances, Ending $ (3,387,556) (3,387,556) $ (7,004,326) $ (3,616,770) $ Budgeted Amounts
Town of Paradise, California
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CDBG Grants Fund
Year Ended June 30, 2025
56 221
222
Miscellaneous and Safety Plan 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Town's proportion of the net pension liability 0.251060% 0.246810% 0.251770% 0.314550% 0.233280% 0.229360% 0.226590% 0.218950% 0.219600% 0.214540%Town's proportionate share of the net pension liability $ 30,790,448 30,447,009 $ 29,081,689 $ 17,011,738 $ 25,381,614 $ 23,502,428 $ 21,834,378 $ 21,713,980 $ 19,003,356 $ 14,725,536 $ Town's covered payroll - measurement period $ 6,435,817 7,484,964 $ 5,416,012 $ 4,792,559 $ 3,834,730 $ 3,849,696 $ 3,764,228 $ 3,789,395 $ 3,511,751 $ 3,474,659 $ Town's proportionate share of the net pension liability as a percentage of its covered payroll 406.78% 478.42% 536.96% 354.96% 661.89% 610.50% 580.05% 573.02% 541.14% 423.80% Plan fiduciary net position as a percentage of the total pension liability 68.45% 71.42% 71.88% 84.89% 75.10% 75.30% 73.30% 74.06% 74.06% 78.40% Note to Schedule:

Change in benefit terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact.

This applies for voluntary benefit changes as well as any others of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions: The discount rate was changed from 7.15% to 6.90% in the 2021 valuation.

Valuation date: June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Actuarial cost methodAmortized methodRemaining amortization periodAsset valuation method Market Value Market Value Market Value Market Value Market Value Market Value Market Value Market Value Market Value Market ValueInflation 2.30% 2.30% 2.50% 2.50% 2.50% 2.63% 2.75% 2.75% 2.75% 2.75%Salary increasesPayroll growth 2.80% 2.80% 2.75% 2.75% 2.75% 2.88% 3.00% 3.00% 3.00% 3.00%Investment rate of return 6.80% (1) 6.80% (1) 7.00% (1) 7.00% (1) 7.00% (1) 7.25% (1) 7.375% (1) 7.50% (1) 7.50% (1) 7.50% (1)Mortality (5) (5) (4) (4) (4) (3) (3) (3) (2) (2)(5) Probabilities of retirement and mortality are based on CalPERS' 2021 Experience Study for the period from 1997 to 2019.

Entry age normal
Level percentage of payroll, closed
Varies, not more than 30 years
Varies by Entry Age and Service
Notes to Schedule:Methods and assumptions used to determine contribution rates:(1) Net of administrative expenses, includes inflation.(2) Probabilities of retirement and mortality are based on CalPERS' 2010 Experience Study for the period from 1997 to 2007.(3) Probabilities of retirement and mortality are based on CalPERS' 2014 Experience Study for the period from 1997 to 2011.(4) Probabilities of retirement and mortality are based on CalPERS' 2017 Experience Study for the period from 1997 to 2015.

Reporting Fiscal Year
(Measurement Date)
Town of Paradise, California
Schedule of the Town's Proportionate Share of the Net Pension Liability (Asset) Year Ended June 30, 2025Required Supplementary InformationCost-Sharing Pension Plan(Unaudited) 57 223
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Reporting Date - Based on Measurement Period (2024) (2023) (2022) (2021) (2020) (2019) (2018) (2017) (2016) (2015)Total OPEB Liability Service cost $ 325,798 548,957 $ 402,152 $ 110,454 $ 107,237 $ 153,868 $ 149,386 $ 145,035 $ Interest on the total OPEB liability 511,261 526,862 357,063 643,913 637,764 663,993 661,804 661,041Changes on benefit terms - - 609,318 - - - - -Differences between expected and actual experience in the measurement of the OPEB liability 1,501,673 (48,982) 72,957 (436,000) - (424,055) - - Changes of assumptions or other inputs (180,966) (280,686) (2,336,582) 3,981,641 - (19,451) - -Benefit payments, including refunds of employee contributions (798,034) (652,606) (773,894) (748,993) (784,503) (771,250) (783,788) (792,419) Implicit subsidy - (169,826) - - - - - -
Net change in total OPEB liability 1,359,732 (76,281) (1,668,986) 3,551,015 (39,502) (396,895) 27,402 13,657 Total OPEB Liability, Beginning 12,046,535 13,406,267 13,715,521 10,164,506 10,204,008 10,600,903 10,573,501 10,559,884Total OPEB Liability, Ending (a) $ 13,406,267 13,329,986 $ 12,046,535 $ 13,715,521 $ 10,164,506 $ 10,204,008 $ 10,600,903 $ 10,573,541 $ Plan Fiduciary Net Position Contributions, employer $ 798,034 652,606 $ 773,890 $ 748,993 $ 784,503 $ 771,250 $ 852,682 $ 817,419 $ Net investment income 26,982 30,184 (26,800) 63,661 (227) 12,915 11,096 11,016Benefit payments, including refunds of employee contributions (798,034) (652,606) (773,894) (748,993) (784,503) (771,250) (783,788) (792,419) Administrative expense 4 (580) (572) (487) (323) (323) (198) - Net change in plan fiduciary net position 26,986 29,604 (27,376) 63,174 (550) 12,592 79,792 36,016 Plan Fiduciary Net Position, Beginning 254,657 281,643 282,033 218,859 219,409 206,817 127,025 91,009Plan Fiduciary Net Position, Ending (b) $ 281,643 311,247 $ 254,657 $ 282,033 $ 218,859 $ 219,409 $ 206,817 $ 127,025 $ Town's Net OPEB Liability, Ending (a) - (b) $ 13,124,624 13,018,739 $ 11,791,878 $ 13,433,488 $ 9,945,647 $ 9,984,599 $ 10,394,086 $ 10,446,516 $ Plan fiduciary net position as a percentage of the
total OPEB liability 2.33% 2.10% 2.11% 2.06% 2.15% 2.15% 1.95% 1.20% Covered payroll $ 6,756,552 7,484,964 $ 5,128,559 $ 4,579,309 $ 3,834,730 $ 4,290,581 3,849,529 $ 3,854,764 $ Town's net OPEB liability as a percentage of covered payroll 173.93% 194.25% 229.93% 293.35% 259.36% 259.37% 242.25% 271.00% Information not available
Required Supplementary Information
(Measurement Date)
Town of Paradise, California
Schedule of Changes in the Town's Net OPEB Liability and Related Ratios Year Ended June 30, 2025 Reporting Fiscal Year
(Unaudited)
58 224
Miscellaneous and Safety Plan 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Statutorily required contribution $ 3,015,733 3,431,744 $ 2,890,885 $ 2,545,505 $ 2,261,174 $ 1,476,369 $ 1,168,177 $ 1,458,470 $ 1,248,468 $ 628,975 $ Town's contributions in relation to the statutorily required contribution (3,015,733) (3,431,744) (2,890,885) (2,545,505) (2,261,174) (1,940,581) (1,610,515) 1,387,082 (1,189,673) (1,070,254) Town's contribution deficiency (excess) $ - - $ - $ - $ - $ (464,212) $ (442,338) $ 2,845,552 $ 58,795 $ (441,279) $ Town's covered payroll $ 7,484,964 8,545,179 $ 6,435,817 $ 5,416,012 $ 4,792,559 $ 3,834,730 $ 3,849,696 $ 3,764,228 $ 3,789,395 $ 3,511,751 $ Town's contributions as a percentage of covered payroll 40.16% 40.29% 44.92% 47.00% 47.18% 50.61% 41.83% -36.85% 31.39% 30.48% OPEB Plan 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016Statutorily required contribution $ 994,136 1,524,855 $ 878,029 $ 863,005 $ 676,317 $ 709,387 $ 701,420 $ 1,165,684 $ Information InformationTown's contributions in relation to the not available not available statutorily required contribution (822,432) (1,019,641) (749,022) (766,353) (748,993) (781,580) (701,420) (779,349) Town's contribution deficiency (excess) $ 171,704 505,214 $ 129,007 $ 96,652 $ (72,676) $ (72,193) $ - $ 386,335 $ Town's covered payroll $ 7,484,964 8,545,179 $ 6,756,552 $ 5,128,559 $ 4,579,309 $ 3,834,730 $ 3,849,529 $ 4,290,581 $ Town's contributions as a percentage of covered payroll 11.98% 11.84% 11.64% 14.94% 16.36% 20.30% 16.35% 20.22% Notes to Schedule - OPEBValuation date June 30, 2023 June 30, 2023 June 30, 2021 June 30, 2021 June 30, 2019 June 30, 2019 June 30, 2017 June 30, 2017Measurement period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017Methods and assumptions used to determine contribution rates:Actuarial cost methodAmortization methodAmortization periodAsset valuation methodInflation 2.30% 2.30% 2.30% 2.50% 2.50% 2.50% 2.26% 2.26%Salary increasesDiscount rate 4.11% 3.89% 4.27% 2.60% 6.50% 6.50% 7.28% 7.28%Investment rate of return 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 7.28% 7.28%Healthcare cost-trend rate, initial 6.80% 7.40% 5.50% 5.75% 6.40% 6.40% 7.85% 7.85%Healthcare trending down to 4.14% 4.14% 4.04% 4.04% 4.00% 4.00% 5.00% 5.00%Retirement ageMortalityUnder Town Council Resolutions, the Town approved updated memoranda of understanding with its employee groups that revised the employer contribution provisions for medical coverage, including benefits provided to eligible retirees. These changes are expected to increase the Town’s OPEB liability as they are reflected in the 2026 actuarial measurement.

Most recent CalPERS Experience StudyMost recent CalPERS Experience Study Town of Paradise, California
Reporting Fiscal YearReporting Fiscal Year
Required Supplementary InformationSchedule of the Town's Pension/OPEB Contributions (Unaudited)Year Ended June 30, 2025 Entry Age Normal Cost MethodLevel percentage of payroll, closed30 yearsMarket value of assetsVaries by entry age and service 59 225
Combining Statements and Individual Fund Statements
226
Building Total
Safety and Disaster Public Nonmajor
Wastewater Recovery Local Highway Community FEMA Safety Other Home Impact Capital Governmental Services Projects Transportation Grants Gas Tax Development Grants Grants Grants Grant Fund Fees Projects Funds Assets
Cash and investments $ - 4,357,603 $ $ 223,369 $ 2,847,882 $ 7,137,506 $ 10,884 $ 415,243 - $ $ 350,946 $ 9,296 $ 1,316,172 $ - $ 16,668,901 Accounts receivable 61,353 - 709 - - - - 3,370 5,973 - - - 71,405 Interest receivable 2,078 - 2 - 3,726 3 - 88 207 4 645 - 6,753 Due from other governments 40,481 - 658,456 1,071,902 91,843 10,185 2,082,092 760,025 - - - - 4,714,984 Total assets $ - 4,461,515 $ $ 882,536 $ 3,919,784 $ 7,233,075 $ 21,072 $ 2,082,092 $ 418,701 $ 1,117,151 $ 9,300 $ 1,316,817 $ 21,462,043 - $ Liabilities
Accounts payable $ - 41,816 $ $ 6,083 $ 979,944 $ 21,917 $ 597,848 4 $ $ 3,693 $ 260,665 $ 1,054 $ 88,122 $ 39,462 $ 2,040,608 Accrued wages 54,905 - 2,749 - 47,866 - 4,228 - - 7,947 - - 117,695 Due to other funds - 2,572,035 - 2,950 - - 2,244,003 6,805 292,826 549,790 - 610,262 6,278,671 Unearned revenue - - - - 6,220,735 - - - 11,222 - - - 6,231,957 Total liabilities 96,721 2,572,035 8,832 982,894 6,290,518 2,846,079 4 10,498 564,713 558,791 88,122 649,724 14,668,931 Deferred Inflows of Resources
Unavailable revenue - - 658,456 845,199 - 10,185 2,082,092 - 760,025 - - - 4,355,957 Total deferred inflows of resources - - 658,456 845,199 - 10,185 2,082,092 760,025 - - - - 4,355,957 Fund Balances (Deficit)
Restricted:

Community development - - - - - 10,883 - - - - - - 10,883 Public safety - - - - - - - 408,203 - - 79,157 - 487,360 Streets and roads - - 215,248 2,091,691 942,557 - - - - - 833,732 - 4,083,228 Wastewater and drainage - 4,364,794 - - - - - - - - 315,806 - 4,680,600 Unassigned - (2,572,035) - - - - (2,846,079) (207,587) - (549,491) - (649,724) (6,824,916) Total fund balances (deficits) (2,572,035) 4,364,794 215,248 2,091,691 942,557 10,883 (2,846,079) 408,203 (207,587) (549,491) 1,228,695 (649,724) 2,437,155Total liabilities and fund balances (deficits) $ - 4,461,515 $ $ 882,536 $ 3,919,784 $ 7,233,075 $ 21,072 $ 2,082,092 $ 418,701 $ 1,117,151 $ 9,300 $ 1,316,817 $ 21,462,043 - $ Projects
Capital
Special Revenue
Town of Paradise, California
Combining Balance Sheet - Nonmajor Governmental FundsJune 30, 2025 60 227
Building Total
Safety and Disaster Public Nonmajor
Wastewater Recovery Local Highway Community FEMA Safety Other Home Impact Capital Governmental Services Projects Transportation Grants Gas Tax Development Grants Grants Grants Grant Fund Fees Projects Funds Revenues
Taxes and assessments $ - $ - $ - $ 2,132,105 - $ $ - $ - $ - $ - $ - $ - $ 2,132,105 - $ Licenses, permits and impact fees - 875,726 - - - - - - - - - - 875,726Fines and forfeitures - 105,600 - - - - - - - - - - 105,600Intergovernmental revenues - 204,796 236,925 1,601,555 - - - 209,032 126,791 - - - 2,379,099Investment income 8,520 - 333 - 14,322 5 - 10,735 706 18 2,602 - 37,241 Reimbursement - - - - - - - - - - - - - Charges for services - 1,919,920 - - - 1,336 - - - - - - 1,921,256Program income - - - - - - - - - 18,726 - - 18,726Other revenues 395 - 1,280 1,453 - - 8,665 20,729 287,722 46,661 - - 366,905 Total revenues 204,796 2,910,161 238,538 1,603,008 2,146,427 1,341 8,665 240,496 415,219 65,405 2,602 - 7,836,658 Expenditures
Current:

General government - - - - - 4,913 - - - - - - 4,913
Community development - 2,629,471 - - - 291,662 2,481,814 490,155 - 97,912 - - 5,991,014Public safety - - - - - - - 25,506 - - - - 25,506Public works - - 8,289 - 4,658 - 2,231 - - - 267 176,538 191,983Streets - - 32,325 29,128 1,603,316 - - - - - - - 1,664,769 Capital outlay - - 9,156 4,365,761 68,803 - 362,139 - 389,077 - 206,645 - 5,401,581 Debt service:

Principal 70,451 - 1,112 - 35,511 - - - - 18,822 - - 125,896 Interest - 102,052 1,948 - 62,202 - - - - 32,969 - - 199,171 Total expenditures - 2,801,974 52,830 4,394,889 1,774,490 296,575 2,846,184 25,506 879,232 149,703 206,912 176,538 13,604,833Excess (deficiency) of revenues over (under) expenditures 204,796 108,187 185,708 (2,791,881) 371,937 (295,234) (2,837,519) 214,990 (464,013) (84,298) (204,310) (176,538) (5,768,175) Other Financing Sources
Transfers out - (375,024) (12,501) - (342,315) - - - - - - - (729,840) Total other financing sources and uses - (375,024) (12,501) - (342,315) - - - - - - - (729,840)Net change in fund balances 204,796 (266,837) 173,207 (2,791,881) 29,622 (295,234) (2,837,519) 214,990 (464,013) (84,298) (204,310) (176,538) (6,498,015) Fund Balances, Beginning (2,776,831) 4,631,631 42,041 4,883,572 912,935 306,117 (8,560) 193,213 256,426 (465,193) 1,433,005 (473,186) 8,935,170Fund Balances (Deficit), Ending $ (2,572,035) 4,364,794 $ 215,248 $ 2,091,691 $ 942,557 $ 10,883 $ (2,846,079) $ 408,203 $ (207,587) $ (549,491) $ 1,228,695 $ (649,724) $ 2,437,155 $ Capital
Special Revenue Projects
Town of Paradise, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental FundsYear Ended June 30, 2025 61 228
Employee PD Found
Bank Money Total
Assets
Cash and investments $ 1,708 $ 6,958 $ 8,666
Accounts receivable - 2,107 2,107
Total assets 1,708 9,065 10,773
Net Position
Restricted for organizations, individuals and
other governments 1,708 9,065 10,773
Total net position $ 1,708 $ 9,065 $ 10,773
Town of Paradise, California
Combining Statement of Net Position - Custodial Funds
June 30, 2025
62 229
Employee PD Found
Bank Money Total
Deductions
Transfers out $ - $ 11 $ 11
Total deductions - 11 11
Change in net position - (11) (11)
Net Position, Beginning 1,708 9,076 10,784
Net Position, Ending $ 1,708 $ 9,065 $ 10,773
Town of Paradise, California
Combining Statement of Changes in Net Position - Custodial Funds Year Ended June 30, 2025
63 230
Town of Paradise, CA
Report on Federal Awards
June 30, 2025
231
Town of Paradise, CA
Table of Contents
June 30, 2025
Page
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 1
Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3
Schedule of Expenditures of Federal Awards 7
Notes to the Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 9
Corrective Action Plan 13
Summary Schedule of Prior Audit Findings 17
232
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.

Report on Internal Control
Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of
Financial Statements Performed in Accordance
With Government Auditing Standards
Independent Auditors' Report
To the Town Council of
the Town of Paradise, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Paradise, California (the Town), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements, and have issued our report thereon dated August 26, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2025-001, that we consider to be a material weakness.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
1 233
The Town's Response to Findings and Corrective Action Plan Government Auditing Standards requires the auditor to perform limited procedures on the Town's response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. Additionally, the Town is responsible for preparing a corrective action plan to address each audit finding included in our auditors' report. The Town's response and corrective action plan were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Tempe, Arizona
August 26, 2026
2 234
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.

Report on Compliance
for Each Major Federal Program;
Report on Internal Control Over Compliance; and
Report on the Schedule of Expenditures of
Federal Awards Required by the Uniform Guidance
Independent Auditors' Report
To the Town Council of
the Town of Paradise, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Town of Paradise, California's (the Town) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the Town's major federal programs for the year ended June 30, 2025. The Town's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs.

In our opinion, the Town complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.

Our audit does not provide a legal determination of the Town's compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Town's federal programs.
3 235
Auditors' Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Town's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Town's compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Town's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the Town's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items 2025-002 and 2025-003. Our opinion on each major federal program is not modified with respect to these matters.

Government Auditing Standards requires the auditor to perform limited procedures on the Town's response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The Town's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The Town is responsible for preparing a corrective action plan to address each audit finding included in our auditor's report. The Town's corrective action plan was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on it. 4 236
Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be material weaknesses.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2025-002 and 2025-003 to be material weaknesses.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Government Auditing Standards requires the auditor to perform limited procedures on the Town's response to the internal control over compliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The Town's response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The Town is responsible for preparing a corrective action plan to address each audit finding included in our auditor's report. The Town's corrective action plan was not subjected to the auditing procedures applied in the audit of the compliance and, accordingly, we express no opinion on it.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 5 237
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Town's financial statements. We issued our report thereon dated August 26, 2026, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Tempe, Arizona
August 26, 2026
6 238
Assistance Pass-Through
Federal Grantor/ Listing Pass-Through Agency Grant Federal Program Title/ Cluster Number Agency Number Expenditures Federal ProgramsU.S. Department of Housing and Urban Development Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006 678,601 $ Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006-00001 197,423 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006-00007 1,852 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006-00012 92,958 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006-00033 838,024 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006-00034 1,563,680 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006-00045 6,827 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18009 4,453,048 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 21-DRMHP-21004 13,695,058 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006-00036 84,056 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-DRINFRA-18006-00041 1,341 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 N/A 18-MITRIP-23011 60 Total Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 21,612,928 Community Development Block Grants Cluster - Entitlement/Special Purpose Grants ClusterCommunity Development Block Grants Cluster - Entitlement/Special Purpose Grants 14.218 N/A B-20-MC-06-0051 86,022 Community Development Block Grants Cluster - Entitlement/Special Purpose Grants 14.218 N/A B-23-MC-06-0051 19,210Community Development Block Grants Cluster - Entitlement/Special Purpose Grants 14.218 N/A B-24-MC-06-0051 23,534 Total Community Development Block Grants Cluster - Entitlement/Special Purpose Grants Cluster 128,766Total U.S. Department of Housing and Urban Development 21,741,694 U.S. Department of Homeland Security, Federal Management Agency (FEMA) Disaster Grant - Public Assistance (Presidentially Declared Disasters) 97.036 N/A FEMA PJ0359-130763 45,646 Disaster Grant - Public Assistance (Presidentially Declared Disasters) 97.036 N/A FEMA PJ0363-132422 13,043,682 Total Disaster Grant - Public Assistance (Presidentially Declared Disasters) 13,089,328 * Hazard Mitigation Grant Program 97.039 N/A HMGP #4407-157-046R 361,769 Hazard Mitigation Grant Program 97.039 N/A PJ0305 / HMGP 1,277,984 Hazard Mitigation Grant Program 97.039 N/A HMGP #4407 0511 170,884 Hazard Mitigation Grant Program 97.039 N/A HMGP #4407 0255 2,247 Hazard Mitigation Grant Program 97.039 N/A PJ0189 / HMGP 411,843 Total Hazard Mitigation Grant Program 2,224,727 *
Total U.S. Department of Homeland Security, Federal Emergency Management Agency (FEMA) 15,314,055 U.S. Department of Transportation
Highway Planning and Construction 20.205 California Department of Transportation CML-5425 (043) 16,429 Highway Planning and Construction 20.205 California Department of Transportation CML-5425 (044) 2,160 Highway Planning and Construction 20.205 California Department of Transportation HSIPL-5425(041) 19,732 Highway Planning and Construction 20.205 California Department of Transportation ATP6-03-006S 257,132 Highway Planning and Construction 20.205 California Department of Transportation CPFL-5425 (049) 63,364 Highway Planning and Construction 20.205 California Department of Transportation LTCL-5425 (050) 188,142 Highway Planning and Construction 20.205 California Department of Transportation ER-38YO-012 / FHWA 3,961,555 Highway Planning and Construction 20.205 California Department of Transportation ER-38YO-025 / FHWA 1,594 Total U.S. Department of Transportation 4,510,108 *
U.S. Department of Treasury
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A N/A 673,824 Total U.S. Department of Treasury 673,824Total expenditures of federal awards $ 42,239,681 * Denotes major program
Town of Paradise, CA
Schedule of Expenditures of Federal AwardsYear Ended June 30, 2025 See notes to schedule of expenditures of federal awards 7 239
Town of Paradise, CA
Notes to the Schedule of Expenditures of Federal Awards June 30, 2025
8 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Paradise, CA under programs of the federal government for the year ended June 30, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Paradise, CA, it is not intended to and does not present the financial position, changes in net position or cash flows of the Town of Paradise, CA.

2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual or modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Pass-through entity identifying numbers are presented where available.

The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter. Expenditures are recorded when the liability is incurred.

3. Indirect Cost Rate
The Town has not elected to use the applicable de minimis indirect cost rate.

4. Loan and Loan Guarantee Programs
The outstanding balances of loan programs were as follows:

Federal Program AL Number Outstanding Loan Balance
Community Development Block Grants/State's
program and Non-Entitlement Grants in Hawaii

14.228 $33,218,847
240
Town of Paradise, CA
Schedule of Findings and Questioned Costs
June 30, 2025
9 Section I - Summary of Auditors' Results
Financial Statements
Type of report the auditor issued on whether the financial statements audited were prepared in accordance with
GAAP: Unmodified

Internal control over financial reporting:

Material weakness(es) identified? X yes no
Significant deficiency(ies) identified? yes X none reported

Noncompliance material to financial statements noted? yes X no

Federal Awards

Internal control over major programs:

Material weakness(es) identified? X yes no
Significant deficiency(ies) identified? yes X none reported

Type of auditor's report issued on compliance for major programs: Unmodified

Any audit findings disclosed that are required to be
reported in accordance with section 2 CFR 200.516(a)? X yes no

Auditee qualified as low-risk auditee? yes X no

Dollar threshold used to distinguish between type A and type B programs: $750,000

Identification of major federal programs: (B)
Assistance Listing Number(s)(C) Name of Federal Program or Cluster(D)

20.205 Highway Planning and Construction

97.036 Disaster Grant – Public Assistance (Presidentially Declared Disasters)

97.039 Hazard Mitigation Grant Program
241
Town of Paradise, CA
Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
10 Section II - Financial Statement Findings Required to be Reported in Accordance With Government Auditing Standards
Finding 2025-001 - Material Weakness – Financial Reporting Condition: There were multiple audit adjustments and closing entries posted during the audit to report the Town's financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The large number of adjustments identified during the course of the audit indicates that the Town does not have internal controls in place to prevent or detect misstatements on a timely basis.

Areas where accounts and transactions were not adequately reconciled and evaluated for proper recording prior to the start of the audit fieldwork and areas that require improvement included the following:
 Procedures for ensuring revenue received in advance of qualifying expenditures are properly recorded to deferred inflows as unavailable revenues.
 Procedures to ensure retainages payable are properly accrued.  Procedures for tracking grant expenditures to ensure revenue is accrued to the extent of reimbursable expenditures incurred and evaluation of proper accounting treatment of transactions as earned, unearned, or unavailable revenue.  Procedures to ensure capital outlay is properly reconciled to capital asset additions.  Procedures to ensure all loans issued by the Town are properly recorded in the general ledger.
 Procedures to ensure that all grant billings are properly reconciled and are accurately reflected in the general ledger.

Criteria: Internal controls over financial reporting should exist to ensure the financial statements are prepared in accordance with GAAP and limit the opportunity for errors and fraud occurring.

Cause: The Town's Finance Department did not have procedures in place to fully close the Town's books before the start of the audit.

Effect: The adjustments and closing entries were required to report the financial statements in accordance with GAAP.

Recommendation: We recommend that management ensure all balance sheet accounts are reviewed for proper cut-off and accounts in the Statement of Revenues, Expenditures and Changes in Fund Balance are reviewed for proper classification during the closing process, including reviewing accounts receivable, intergovernmental revenues/deferred inflows, loan revenues/deferred inflows, retainages payable, capital outlay expenditures, government-wide revenue and expense adjustments and the classification of revenues and expenditures.

Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding, see the Town's corrective action plan for additional details. 242
Town of Paradise, CA
Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
11 Section III - Federal Awards Findings and Questioned Costs Finding 2025-002 – Material Weakness – Period of Performance Assistance Listing: 97.036 – Disaster Grants – Public Assistance (Presidentially Declared Disasters)
Federal Grantor: US Department of Homeland Security, Federal Emergency Management Agency (FEMA)
Pass-through Grantor's No: N/A – Direct Grant, Contract No: FEMA PJ0359-130763 Criteria: Pursuant to 2 CFR 200.309 and the terms and conditions of the FEMA award, a recipient may charge to a federal award only allowable costs incurred during the approved period of performance unless an extension has been approved by the awarding agency.

Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had communicated that the extension request has been denied. However, FEMA reimbursed the Town for the expenditures incurred after October 31, 2024. As of the date of this audit report, FEMA has not indicated whether the reimbursement will ultimately be retained or subject to recovery.

Cause: The Town lacked an effective review control to ensure expenditures incurred after the approved period of performance were not charged to the federal award or included in reimbursement requests until an extension had been approved by FEMA. Consequently, management continued requesting reimbursement for expenditures incurred after the approved period while awaiting FEMA's decision on the extension request.

Effect or Potential Effect: Expenditures charged to the federal award were not incurred within the approved period of performance, resulting in noncompliance with the terms and conditions of the federal award and the possibility that FEMA could require repayment of reimbursements received.

Known Questioned Costs: $30,826
Recommendations: The Town should strengthen controls over monitoring grant periods of performance and ensure expenditures incurred after the approved period are not charged to federal awards, and requested for reimbursement, unless and until an extension has been approved by the awarding agency.

Views of Responsible Officials and Planned Corrective Action: The Town's management concurs with the finding and will implement the recommendation above.

243
Town of Paradise, CA
Schedule of Findings and Questioned Costs
Year Ended June 30, 2025
12 Finding 2025-003 – Material Weakness – Single Audit Reporting Package Not Submitted in a Timely Manner (Repeat Finding of 2024-003)
Federal program: All federal programs
Criteria: Pursuant to 2 CFR 200.512 of the Uniform Guidance requires the organization submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period.

Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline.

Cause: The Town did not prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner.

Effect or Potential Effect: The late submission of the audited financial statements and data collection form resulted in the Town being noncompliant with the provisions of Section 200.512 of the Uniform Guidance.

Recommendations: We recommend the Town strengthens the year-end close process to provide ample time to finalize the general ledger and trial balance to meet the federal audit clearinghouse nine-month submission deadline.

Views of Responsible Officials and Planned Corrective Action: The Town's management concurs with the finding and will implement the recommendation above. 244
Town of Paradise
Finance Department
5555 Skyway
Paradise, CA 95969
(530) 872-6291
13 Working together to rebuild a thriving community.

Finding 2025-001 – Material Weakness – Financial Reporting Condition: There were multiple audit adjustments and closing entries posted during the audit to report the Town’s financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The large number of adjustments identified during the course of the audit indicates that the Town does not have internal controls in place to prevent or detect misstatements on a timely basis. Areas where accounts and transactions were not adequately reconciled and evaluated for proper recording prior to the start of the audit fieldwork and areas that require improvement included loans receivable/deferred inflows/revenues, grants receivable/deferred inflows/revenues, capital outlay expenditures required to be capitalized, and retainages payable.

Corrective Action Plan
Corrective Action Planned: The Town will implement a formal monthly and year-end close process with documented checklists and assigned responsibilities. Training will be provided for all accounting staff on GAAP, grant compliance, and reconciliation procedures. A pre-audit internal review will be conducted by the Finance Director to identify and correct errors before submission to auditors.

Corrective Action Implemented and In Progress: The Town has already taken significant steps to implement the corrective action and address the conditions identified in Finding 2025-001. These efforts are focused on strengthening the Finance Department’s ability to prevent and detect misstatements on a timely basis and ensuring that reconciliations and required adjustments are completed prior to audit fieldwork.

Beginning in May 2026, all Finance staff have begun participating in CSMFO training courses in excess of their respective levels and responsibilities to expand technical knowledge, support cross-training, and strengthen the department’s overall accounting expertise. Training and development are intended to provide staff with a broader understanding of governmental accounting, GAAP, grant compliance, reconciliations, and year-end financial reporting rather than limiting employees to only the functions of their individual positions.

In February 2026, the Town has contracted with Regional Government Services (RGS) to provide onsite training and technical assistance. This support is being used to strengthen governmental accounting knowledge, reconciliation procedures, year-end closing processes, financial reporting capabilities, and staff development. With the new staff structure, the department is actively developing and training employees to identify errors and potential misstatements on a timely basis rather than relying on the annual audit process to identify necessary corrections.

The Town has implemented several system and process improvements within New World. Additional modules and capabilities have been added, including functionality to assist with payroll processing and reconciliation. Finance has also implemented new procedures designed to simplify and standardize accounting processes, improve consistency, clarify responsibilities, strengthen internal controls, and reduce reliance on manual or individualized processes.

Grant accounting and project tracking have been substantially revised. Finance has revamped its grant tracking processes and standardized the account structure used to track projects across multiple funds.

This allows projects to be tracked through a consistent general account structure regardless of the fund in which activity occurs and provides greater clarity when reconciling project revenues, expenditures, receivables, deferred inflows, and related balances.

245
Town of Paradise
Finance Department
5555 Skyway
Paradise, CA 95969
(530) 872-6291
14 Working together to rebuild a thriving community.

Finance has also upgraded its internal workbooks and reconciliation tools to strengthen project tracking and year-end closing capabilities. These workbooks are designed to assist staff with project reconciliation, grant closeout, capital asset review, and the identification of transactions requiring adjustment at year-end. The improved workbooks also provide clearer and more consistent supporting documentation for the year-end close and audit.

With regard to housing programs, Finance is actively reviewing and reconciling loans receivable and developing clearer, standardized documentation requirements for tracking individual loans. This work includes establishing consistent supporting documentation, reconciliation procedures, and tracking methods to improve the accuracy and clarity of loans receivable, related deferred inflows, and revenue recognition at year-end.

The Town has developed a formal year-end closing checklist and process specifically designed to identify necessary adjustments before audit fieldwork begins. The closing process includes review and reconciliation of significant accounts and transactions, including loans receivable, grants receivable, deferred inflows, revenues, capital outlay and capital assets, retainage payable, payroll-related balances, project activity, accruals, and other significant year-end accounts.

The department is also working toward a more formalized monthly closing process with assigned responsibilities and documented review procedures. Monthly reconciliations and review throughout the fiscal year are intended to identify discrepancies earlier, reduce the number of adjustments required during year-end closing, and provide more reliable financial information throughout the year.

Since FY 2023-24, the Finance Department has been restructured to increase capacity, strengthen technical knowledge, and improve review and reconciliation procedures. The Town has expanded staffing, created and filled two Accounting Assistant positions, one in October 2024 and the second in April 2025, and reclassed an Accountant position to a Senior Accountant in May 2026 to provide additional technical expertise, review, and oversight.

As a result of the significant turnover within the department, much of the historical institutional knowledge related to accounting processes, grant and project activity, year-end closing procedures, and system processes was lost. To address this, Finance has placed significant emphasis on rebuilding institutional knowledge through formal training, cross-training, written procedures, process guides, standardized workbooks, and documented checklists. These resources are being developed to ensure that critical accounting functions are clearly documented, consistently performed, and are not dependent upon the knowledge of a single employee.

At the same time, the scope and complexity of the Finance Department's workload has increased significantly. The Town has substantially increased the number and volume of projects being administered over the past several years, resulting in increased grant activity, project accounting, reimbursement processing, capital asset activity, financial reporting requirements, and audit support.

The restructuring and expansion of the Finance Department, along with the development of standardized procedures and stronger tracking tools, are intended to provide the capacity and internal controls necessary to support this increased workload while maintaining accurate and timely financial reporting.

246
Town of Paradise
Finance Department
5555 Skyway
Paradise, CA 95969
(530) 872-6291
15 Working together to rebuild a thriving community.

Collectively, these staffing, training, system, reconciliation, and procedural improvements represent the Town’s ongoing implementation of the corrective action plan. They also recognize the increased complexity and volume of the Town's financial activities and are intended to create a more sustainable Finance operation with documented institutional knowledge, appropriate staffing capacity, stronger internal controls, and greater continuity through future staffing changes. The objective is to improve the timeliness and accuracy of financial reporting and strengthen the Finance Department’s ability to prevent, detect, and correct potential financial statement misstatements on a timely basis.

Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.

Finding 2025-002 – Material Weakness – Period of Performance Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had communicated that the extension request has been denied. However, FEMA reimbursed the Town for the expenditures incurred after October 31, 2024. As of the date of this audit report, FEMA has not indicated whether the reimbursement will ultimately be retained or subject to recovery.

Corrective Action Plan
Corrective Action Planned: The Town will implement a grant expenditure review checklist requiring preapproval for any costs beyond the approved period; train all grant staff on compliance requirements; update internal controls. The Town will also document all correspondence whether that be by phone, email or written correspondence with FEMA when it comes to deadline extensions.

The Town’s FEMA-funded recovery projects are complex, multi-year projects associated with rebuilding the community. Many projects have extended beyond their original completion dates due to factors including the pandemic, supply-chain and world trade impacts, weather, labor availability, construction timelines, and contract procurement requirements. In addition, frequent turnover among FEMA personnel assigned to the Town’s recovery projects has at times resulted in changes in points of contact, delays in responses, and extended processing times for approvals, determinations, and extension requests. These circumstances have contributed to the length and complexity of administering projects that already require significant coordination over multiple years. The Town has continued to work closely with FEMA throughout this process and has received approvals for extensions on recovery projects. In this instance, the expenditures identified in the finding occurred after the original October 31, 2024 period and were ultimately reimbursed by FEMA.

Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.

247
Town of Paradise
Finance Department
5555 Skyway
Paradise, CA 95969
(530) 872-6291
16 Working together to rebuild a thriving community.

Finding 2025-003 – Material Weakness – Single Audit Reporting Package Not Submitted in a Timely Manner (Repeat Finding of 2024-003)
Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline.

Corrective Action Plan
Corrective Action Planned: The Town will establish internal deadlines to submit the report at least 30 days before the federal due date. The responsibility to track audit milestones and communicate progress to management weekly will be assigned to the Grant Accountant, and the Town will schedule earlier engagement with the external auditor and ensure all required documentation is accurately prepared.

The Town’s delay in submitting the Single Audit was due in part by the timing of the prior-year audit, which was not received until late and compressed the timeline for beginning and completing the subsequent audit. This occurred during a period of significant turnover within the Finance Department, including the loss of institutional knowledge related to grant reporting, audit preparation, and year-end closing procedures. The department has since restructured and expanded staffing, strengthened training, and developed additional procedures, workbooks, and guides to improve continuity and reduce reliance on individual staff knowledge.

The Town has also improved its grant tracking and audit preparation processes, including standardized project account structures, enhanced reconciliation workbooks, and earlier preparation of the SEFA and supporting documentation. Finance is in the process of FY 2025-26 closing process earlier so that reconciliations, year-end adjustments, grant documentation, and audit schedules can be completed well in advance of fieldwork and prevent prior-year audit delays from continuing into future audit cycles.

Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.
248
Town of Paradise
Finance Department
5555 Skyway
Paradise, CA 95969
(530) 872-6291
17 Working together to rebuild a thriving community.

Finding 2024-001 – Material Weakness
Criteria: Internal controls over financial reporting should exist to ensure the financial statements are prepared in accordance with GAAP and limit the opportunity for errors and fraud occurring.

Condition: There were 72 audit adjustments and closing entries posted during the audit to report the Town’s financial statements in accordance with Generally Accepted Accounting Principles (GAAP).

The large number of adjustments identified during the course of the audit indicates that the Town does not have internal controls in place to prevent or detect misstatements on a timely basis. Areas where accounts and transactions were not adequately reconciled and evaluated for proper recording prior to the start of the audit fieldwork and areas that require improvement included in the following:
 Procedures to ensure beginning fund balance/net position roll-forward to prior year audited financial statements.
 Procedures for ensuring revenue received in advance of qualifying expenditures are properly deferred.
 Procedures to ensure retentions payable are properly accrued.  Procedures to ensure accounts payable are properly accrued.  Procedures to ensure compensated absences and payroll accruals are prepared accurately and on a timely basis.
 Procedures to ensure that pension and other post-retirement entries are calculated and prepared accurately.
 Procedures for tracking grant expenditures to ensure revenue is accrued to the extent of reimbursable expenditures incurred and evaluation of proper accounting treatment of transactions as earned, unearned, or unavailable revenue.
 Procedures to ensure capital outlay is properly reconciled to capital asset additions.  Procedures to ensure all loans issued by the Town are properly recorded in the general ledger.  Procedures for evaluating when entries should be posted to fund balance and whether fund balance/net position/restrictions and investment in capital assets are properly reflected.  Procedures to ensure that Town Council approved assigned fund balance are properly recorded in the general ledger and that prior assigned fund balances are properly removed from the general ledger.
 Procedures to ensure interfund transactions resulting from short-term interfund borrowings and interfund transfers, excluding those with agency funds, are in balance and properly reconciled, recorded and a supporting schedule is accurately prepared.  Procedures to ensure that all grant billings are properly reconciled and are accurately reflected in the general ledger.

Current Status: Partially corrected, See repeat finding 2025-001

249
Town of Paradise
Finance Department
5555 Skyway
Paradise, CA 95969
(530) 872-6291
18 Working together to rebuild a thriving community.

Finding 2024-002 – Material Weakness
Criteria: U.S. generally accepted accounting principles (GAAP) require that capital assets be recorded when acquired or constructed and depreciated once placed into service. Internal controls should ensure that additions, disposals, and depreciation are accurately captured in the general ledger and that detailed capital asset records reconcile to financial statement balances. Government-wide and fund-level reporting should be supported by timely and complete reconciliations between the general ledger, construction-in-progress schedules, and fixed-asset tracking reports maintained by departments.

Condition: During the audit of capital assets, it was noted that the Town did not establish a complete reconciliation process between (1) governmental fund capital outlay postings, (2) government-wide fixed-asset adjustments, and (3) the detailed construction in progress and capital assets tracking schedules.
 Prior-year audit adjustments related to capital assets were not fully recorded in the Town’s books, which caused beginning balances and current-year additions not to agree to prior audited amounts.
 Several governmental fund and government-wide adjustments were required during the current audit to correct these variances, including entries to recognize completed projects, true up construction in progress and capital asset balances, correct capital asset classifications and record depreciation expense.
 Finance Department does not reconcile capital outlay expenditures to project tracking information from other departments and the amounts recorded as construction in progress on the capital assets schedule. The Town did not complete the capital asset reconciliation to the general ledger until fourteen months after the fiscal year-end.

Current Status: Partially Corrected, See repeat finding 2025-001 Finding 2024-003 – Material Weakness
Criteria: The Town was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2025, nine months after the fiscal year-end (2 Code of Federal Regulations §200.512).

Condition: The Town submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in December 2025, nine months after it was due, mostly the result of delays in reconciling grant activity to revenue recorded.

Current Status: Not Corrected, See repeat finding 2025-003

250
Town of Paradise
Finance Department
5555 Skyway
Paradise, CA 95969
(530) 872-6291
19 Working together to rebuild a thriving community.

Finding 2024-004
Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over the SEFA should be in place to ensure accrual basis expenses incurred under the federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit.

Condition: The Schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit.

Current Status: Fully Corrected
251

Town of Paradise
Council Agenda Summary
Date: October 13, 2026
Agenda Item: 6(b)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jennifer Macarthy, Town Manager
SUBJECT: Housing Division Staffing

LONG TERM
RECOVERY PLAN:

Yes
COUNCIL ACTION REQUESTED:

1. Consider authorizing the recruitment and hiring of one regular full time Housing Program Technician to support the Town’s Housing Division; and

2. Adopt Resolution No. 2026-___, “A Resolution of the Town Council of the Town of Paradise Approving Changes to the Job Description for Housing Program Technician”; and,

3. Adopt Resolution No. 2026-___, “A Resolution of the Town Council of the Town of Paradise Amending the Salary Pay Plan to Include Housing Program Technician for Fiscal Year 26-27.”
Background:

The Town’s Housing Division administers a significant portfolio of state and federal housing and community development programs supporting homeownership, housing rehabilitation, new housing construction, and multifamily housing development. The Division is currently responsible for administering more than $100 million in active and ongoing housing grants and programs, while simultaneously meeting extensive reporting, monitoring, financial management, and regulatory compliance requirements.

The Housing Division previously operated with four staff members from 2020 through 2024.

Following the retirement of the previous Housing Manager more than a year ago, the Division has continued operating with three staff members. During this same period, the Town’s housing grant portfolio and associated workload have remained substantial and, in several areas, increased.

Analysis:

The current workload presents both a service delivery and grant management challenge. Staff must balance direct assistance to residents through the FTHB and OOR programs with increasingly complex responsibilities associated with new construction, multifamily development, grant administration, financial management, monitoring, and compliance.

Adding a Housing Program Technician would allow for a more appropriate distribution of these responsibilities. The Technician would primarily provide direct support for the First-Time Homebuyer (FTHB) and Owner-Occupied Rehabilitation (OOR) programs, including applicant intake, loan processing, documentation, closings, and ongoing program administration. These 252
duties closely align with the established Housing Program Technician classification, which requires the ability to perform technical administrative work with minimal supervision and independently organize work, establish priorities, and meet critical deadlines.

Redistributing FTHB and OOR responsibilities would provide existing Housing staff with greater capacity to implement the new Infill New Construction Program and would allow the Housing Program Manager to dedicate additional time to the Town’s substantial multifamily portfolio, grant administration, monitoring, financial management, and regulatory compliance.

The addition of this position represents an investment in the Town's ongoing capacity to administer housing programs effectively, provide timely assistance to residents, and protect the Town by ensuring that significant state and federal grant funds are administered in accordance with applicable requirements.

Financial Impact:

The Housing Program Technician is included in the FY 2026/27 Salary Pay Plan at an annual salary range of $65,457.60 to $83,512.00, depending on placement within the salary schedule.

The estimated total annual employee cost, including salary and benefits, is approximately $128,000. It is anticipated that approximately 90% of these costs, or $115,200 annually, may be allocated to eligible housing projects, grant activity delivery, and allowable administrative costs.

The remaining approximately 10%, or $12,800 annually, is anticipated to be funded by the General Fund.

The General Fund portion reflects costs that are generally not eligible for reimbursement through housing grants or administrative allocations, including certain sick and vacation leave, FEMA or Emergency Operations Center training and assignments, other non-grant-related activities, and costs associated with unfunded pension and other long-term liabilities.

Because available grant funding and allowable administrative costs may change over time, staff will continue to evaluate and adjust the appropriate funding allocation for the position through the annual budget process.
253

TOWN OF PARADISE
RESOLUTION NO. 2026-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE

APPROVING CHANGES TO THE JOB DESCRIPTION FOR HOUSING PROGRAM

TECHNICIAN
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 on this 13th day of October 2026, by the following vote:

AYES:

NOES:

ABSENT:

NOT VOTING:

Steve Crowder, Mayor
ATTEST:
_ _____________________________
Melanie Elvis, Town Clerk
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
254
Job Classification Descriptions
Housing Program Technician
255
September 2026
FLSA: Non-Exempt

HOUSING PROGRAM TECHNICIAN

DEFINITION
Under general supervision, provides a wide variety of technical and administrative support in coordinating, implementing, and maintaining housing projects, programs and agreements; acts as liaison for the Town with a variety of private, public and community organizations and regulatory agencies; implements, and participates in technical processes, procedures and programs; and performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from the Housing Program Manager. No direct supervision of staff is exercised.

CLASS CHARACTERISTICS
This is a technical classification performing a wide variety of routine and complex housing related work.

Incumbents serve to relieve the Housing Program Manager of performing technical and administrative work and are expected to function with very little direct oversight. Successful performance of the work requires the interpretation and application of policies, procedures and regulations and may involve frequent contact with the public, as well as performing various research and monitoring functions.

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 administrative assistance and support duties for the Town’s housing programs.  Develops and processes loan applications from start to completion for the rehabilitation or purchase of real property belonging to targeted groups, including interviewing applicants, performing intake duties, processing loan applications, evaluating collecting and verifying application information, explaining the various Town housing and community development programs to prospective loan recipients, and taking applications through the approval process.
 Monitors and implements procedures for loan/grant closings, including coordinating and interacting with owners and escrow staff, setting up loan collection accounts, and implementing procedures regarding loan/grant defaults, loan extensions, and related monitoring requirements.  Establishes and maintains records and files for town rehabilitation and downpayment assistance programs, including all documentation related to loans, contracting agreements, housing photos, and fund disbursements.
 Participates in field inspection work, including gathering data for State and Federal grant applications, and other related duties.
 Meets with contractors and homeowners to discuss project scope; disburses funds to contractors for work completed, including providing the final accounting of loan proceeds, adjusting and documenting changes to Note as required, and processing the checks. Prepares close-out and reimbursement documents for grantors.
256
Housing Program Technician