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CAO gives preliminary $62M response, $220M infrastructure estimate for Jan 2025 fire and windstorm; committee OKs quarterly recovery reporting
Summary
The City Administrative Officer presented preliminary damage estimates for the Jan. 20, 2025 fire and windstorm event and the Budget and Finance Committee instructed the CAO to produce quarterly written reports on fiscal recovery. The CAO warned of borrowing needs and uncertainty around FEMA reimbursement.
The City Administrative Officer's office on Feb. 18 told the Budget and Finance Committee that initial response costs for the Jan. 20, 2025 fire and windstorm event are roughly $62,000,000, with structural and infrastructure damage currently estimated at about $220,000,000.
Patty Huber of the CAO's office provided the presentation and summary figures, saying, "As of Friday, we are currently estimating that our response costs have reached around 62,000,000. Our structural infrastructure damage is now around 220,000,000." She and other CAO officials cautioned these numbers are preliminary and subject to refinement as departments complete assessments and FEMA project development begins.
CAO staff and committee members discussed reimbursement rules under FEMA and the California Disaster Assistance (CDAA) program. The CAO team said FEMA typically covers 75% of eligible costs, with Cal OES potentially covering 75% of the remaining 25% (reducing the city's share to about 6.25%) if CDAA assistance is approved. The CAO's office has applied for FEMA public assistance and for CDAA.
Committee members asked how the city would manage near-term cash flow, especially because many departments already used overtime on debris removal. Max Abow of the CAO explained the city established a $50,000,000 loan from the Building and Safety fund to seed a wildfire emergency account and said departments would be able to request replenishment while the city pursues reimbursements. Abow cautioned additional borrowing beyond the $50,000,000 is likely and acknowledged a risk: if reimbursements are denied or delayed, the general fund could ultimately be required to cover costs.
The committee voted to concur with the ad hoc LA Recovery Committee recommendations and added an instruction directing the CAO to provide written quarterly reports regarding the city's fiscal recovery from the 2025 wildfires. The motion passed on a 5-0 vote.
Committee members also asked for briefings on external contractor roles (Hagerty, AECOM), on DWP's share of damage (CAO reported about $76,000,000 attributable to DWP), and whether retired city employees or short-term hires could be used in a way that maximizes FEMA-eligible reimbursements. The CAO said the city will coordinate with Cal OES and FEMA technical staff to maximize eligible claims and will provide regular updates to the committee.
