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Butte County outlines $12M Palermo clean‑water consolidation project and completes dry‑well connections

Butte County Board of Supervisors · December 16, 2025
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Summary

County staff updated supervisors on the Palermo Clean Water Consolidation plan to connect roughly 380 parcels to South Feather Water & Power (SRF application ~ $12M) and reported completion of a dry‑well consolidation phase (49 laterals installed, ~10 acre‑feet groundwater saved).

Butte County staff told the Board on Dec. 16 that the Palermo Clean Water Consolidation Project is advancing, with South Feather Water & Power Agency designated as loan applicant for a State Revolving Fund (SRF) request of about $12 million.

Director Cammie Loeser said the consolidation would potentially connect about 380 additional parcels to an existing South Feather system and require about 40,000 linear feet of water mains, laterals, meters and hydrants. The county already used ARPA funds for engineering design and has applied for EPA STAG funds (~$2 million) and state drought relief money for construction management. South Feather and the State Water Board are finalizing legal details of the SRF application.

While waiting on SRF, the county completed a Dry Well Consolidation project (construction August–October) that installed roughly 6,000 linear feet of new main and 49 service laterals — more than the originally anticipated 36 parcels — and reduced groundwater use by an estimated 10 acre‑feet. Staff said SRF rules may allow South Feather to use loan funds to connect homes to meter boxes, which can lower household connection costs for disadvantaged residents.

Loeser also summarized a Palermo Drainage Master Plan funded by Cal OES/FEMA hazard mitigation grant funds, noting conceptual solutions ranging from ditch clearing and conveyance improvements to detention basins; the plan will be finalized in January with possible legislative funding recommendations to follow.

What’s next: finalize agreements with South Feather and the State Water Board, complete SRF application steps, and bring Palermo drainage plan recommendations back to the board once finalized.