1. Impact of Fires on Local Government
Emerging Role of the Finance Professional and the Community
Presented to:
2018 Southern California Educational Conference
By: Jim Ruane, OCFA Finance Manager/Auditor
Jeff Hoey, OCFA Battalion Chief

2. Orange County Fire Authority
Overview
Introduction
Speakers
Background on OCFA
Highlights of 2017 Fire Season
Impact to Local Government/Businesses
Impact to the Local Economy
Emerging Role of the Finance Professional
Questions
Orange County Fire Authority 2

3. Introductions/Background
Jim Ruane
Jeff Hoey
OCFA
Joint Powers Authority - $376M Annual Budget
Serves 23 cities and the unincorporated areas of County of Orange
Serves population of 1.3M
Governed by 25 Board Members
Workforce of 1,500 with approximately 1,000 sworn
Urban Search and Rescue Team - 1/28 Nationwide
All Hazard Incident Management Team – California/Nationwide
Orange County Fire Authority 3

4. Orange County Fire Authority
2017 Fire Season
The fire season was disastrous for the State of California.
A total of 9,133 fires burned 1,381,485 acres
5 of the 20 most destructive fires in California’s history occurred
Over 721 square miles burned
Over 5,000 structures destroyed
Locally, the Canyon Fires (1 and 2) were part of the devastating fire season.
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5. Orange County Fire Authority
California Fire Map
for all of 2017
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6. The Three Days of October 2017 The Night of October 8th
An overwhelming number of rapidly spreading fires occurred simultaneously
Within 48 hours, 172 wildfires began across CalFIRE Northern Region
CalFIRE Sonoma-Lake-Napa command center received 3,662 calls for help.
Between 9:45pm and 3:30am, 10 major fires began including the Tubbs Fire.
Fire spread was severe and explosive
Fire spread estimate at peak was one football field length every two seconds.
Wind storms produced strongest winds ever recorded in sections of the north bay.
Recorded winds gusts over 100mph with sustained winds at 80 mph.
Acted as a blow torch pushing fire down canyons and through structures.
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7. Orange County Fire Authority
The Night of October 8th
One of the largest aerial firefighting operations in U.S. history.
Virtually every firefighting aircraft within the U.S. was being utilized within CA.
Operations hampered by low visibility (smoke inversion layers), high winds.
Airplanes flew 1,200+ hours dropping 3.4 million gallons of retardant.
Helicopters flew 2,100+ hours dropping 11.1 million gallons of water.
Ground efforts were also one of the largest in U.S. history.
10,000+ firefighters from 18 states and three other countries.
Orange County Fire Authority 7

8. Orange County Fire Authority
October 9th
Locally, the Canyon 2 Fire ignites just days after Canyon 1 extinguished
Combined total acres burned - 11,879
Total fire personnel – 2,579
Total homes threatened – 6,900
14 homes destroyed
48 homes damaged
Orange County Fire Authority 8

9. California Master Mutual Aid Agreement
Neighbor-helping-Neighbor
No cost (initially)
No obligation to respond
Local jurisdiction always remains in control of its own resources
California Office of Emergency Services takes the lead in ordering resources after initial period
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10. Orange County Fire Authority
Morning of October 10th, 2017
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11. Challenging Environment
Historically, fire season runs May/June to October.
There is no longer a fire season – year round.
Fire season has and is now all hazards.
Hurricanes/Floods
Earthquakes
Natural Disasters
Hazardous Materials Releases
FEMA and insurance companies are expecting organizations to be prepared.
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12. What’s Changing? Environmental
Climate changes - Hotter summer /fall
Plants dry out = fuel
Residential is expanding in wildland interface areas
Strong winds arriving sooner and lasting longer
Diablo – Northern California
Santa Ana – Southern California
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13. What’s Changing? Environmental
Hurricanes
Earthquakes
Terrorism
Social well being
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14. Impact to Local Government/Businesses
During incident:
Significant draw on resources
Emergency responders/ support-administrative (overhead)
OCFA had 145/1,000 assigned out of County
Physical/wellness of workforce
Availability of resources/assets to support incident
Ability to pay your workforce
Coordinating with OES/insurance companies
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15. Impact to Local Government/Businesses
Post Incident Activities
Continue to Work with OES/insurance companies
New staff need to become familiar with reimbursement process
Cash flow concerns
Economic hardships (sales tax/TOT)
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16. Orange County Fire Authority
Fiscal Impact
Local Businesses
Inventory spoilage resulting from power outages, and lack of turnover (no customer consumption). In most cases, reimbursable by private insurance.
Property cleanup expenses for wind damage, ash fallout, and smoke damage. In most cases, reimbursable by private insurance.
Loss of revenue resulting from mandatory evacuation and longer term impact of significant reduction in customer visits. In some cases, revenue loss partially reimbursable through business interruption insurance.
Loss of labor force (long term).
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17. Orange County Fire Authority
Fiscal Impact
Residents/Employees Short-term and Long-term
Incremental (unplanned) expenses related to evacuation (gas, food, lodging). In some cases, reimbursable by private insurance.
Property cleanup expenses for wind damage, ash fallout, and smoke damage.
Loss of wages/gratuities for non-salaried employees.
Closures during mandatory evacuation periods.
Reduced operating hours during gradual return of tourism.
Stress of such traumatic event even if not directly impacted.
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18. The Emerging Role of the Finance Professional
Historically, Finance has taken a post incident support role.
The role is transitioning to being integrated as part of the initial incident management response team.
Internal auditors should (if you haven’t already) consider including Incident Management Teams with review of the agency’s disaster preparation planning.
Also, have agencies consider adding Finance staff resources as part of the incident/command center team.
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19. Incident Command System Structure
Incident Commander
Operations Section Chief
Planning Section Chief
Logistics Section Chief
Finance/Administration Section Chief
Public Information Officer
Safety Officer
Liaison Officer
ICS still includes five major functional areas:
Command
Operations
Planning
Logistics
Finance/Administration
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20. Incident Command System Structure Finance/Administration
Finance/Administration Section Chief
Time Unit Leader
Procurement Unit Leader
Comp/Claims Unit Leader
Cost Unit Leader
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21. Advantages of Involving Finance Early on During an Incident
Manage incident cost effectively.
Maintain fiscal accountability.
Prepare upfront for the documentation that will be needed for reimbursement.
Cal Fire
OES/FEMA
Insurance Companies
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22. Ultimately, it’s extremely rewarding
Challenges
It’s a non-traditional role
It’s unpredictable
It’s uncomfortable
Ultimately, it’s extremely rewarding
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23. Orange County Fire Authority
Questions?
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