Paradise Council directs conditional HCD funds to sewer project, approves design and management contracts

Paradise Town Council on Tuesday approved an amendment to the town’s CDBG‑DR infrastructure action plan that directs an additional, conditional $13.5 million from California’s Department of Housing and Community Development (HCD) to the Paradise Sewer Project and authorized related contracting steps to advance design and project management.

The vote implements Action Plan Amendment No. 4, which also reallocated roughly $5.4 million from an evacuated‑message sign project to a Storm Drain Resiliency Phase 1 (now a $9.3 million project) and memorialized an earlier council direction to move $36.7 million from the Railroad Extension Project into the sewer effort. Staff told the council the HCD allocation is conditional and that HCD asked the town to resolve whether to fully fund the Oliver Curve pedestrian improvement or to dedicate the new conditional funds to the wastewater project. Town staff recommended, and the council approved, dedicating the conditional HCD funds to the sewer project to enlarge the first‑phase build and serve the highest‑priority areas.

"These funds help us ensure there is a fundable, scalable wastewater project and that we can tie the treatment facility to serve the most customers in our priority areas," said project staff (Mark), who outlined the program, environmental work and near‑term milestones. Staff said right‑of‑entry agreements and environmental surveys for two potential treatment sites are complete, an administrative draft of a supplemental environmental impact report is being prepared, and public review is expected this spring.

Council also approved two contract actions tied to the sewer delivery:
- A restated professional services agreement with the project’s retained design team (named in staff materials) to complete the collection‑system design with a not‑to‑exceed amount of $4,500,000. Task orders will be issued by the town manager.
- An increase and extension of the town’s master services agreement with HDR for owner’s‑agent and program management services, raising the not‑to‑exceed total to $9,500,000 and extending the performance period to 2029 to cover environmental, permitting, tribal consultation, funding compliance and construction management support.

Councilmembers debated the trade‑offs between funding a local safety project (Oliver Curve) and advancing sewer infrastructure. One member emphasized sewer’s central role for downtown revitalization and healthcare access, and another asked staff to pursue pedestrian‑safety grants (active transportation) for Oliver Curve while adding short‑term treatments such as delineators and a possible rumble strip.

Staff said the design contract is funded through CDBG‑DR infrastructure planning funds and that the design work aims for completion by 2027 with construction to follow. The HDR amendment will provide staff augmentation and continuity through complex permitting and environmental work, including the subsequent EIR.

The council voted to approve the action plan amendment and to adopt the related resolutions and contract authorizations; the motions passed on recorded council votes. Staff will execute agreements, return with required resolutions, and proceed with public engagement and procurement steps tied to the EIR and design deliverables.

What happens next: staff expects a public comment period for the EIR in the spring, execution of the Corello/Corolla Engineers design agreement and issuance of HDR task orders under the expanded MSA. Council and staff said they will continue pursuing other grant sources (including active‑transportation programs) for Oliver Curve construction funding.