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County nears settlement on Tamarack fire losses; staff recommends reimbursing general fund
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Summary
After four years of negotiations, county staff reported a current estimated loss of about $2.24 million for the Tamarack Fire; $531,520 has been spent to date without full reimbursement and staff suggested returning $500,000 to the general fund once insurer payments arrive.
County staff told the Audit and Finance Committee that the Tamarack Fire insurance claim is nearing resolution after more than four years of analyses, site visits and negotiations with the county's excess insurer, Prism, and its adjuster, MKA.
Ethan, a community development staff member, said county and consultant work led to a staff-level concurrence on an estimated loss of $2,238,450 as of Jan. 8, 2026. "...we finally got...to concur on a total estimated loss of $2,238,450," he said. He added the number may be adjusted slightly, with small pending changes such as an additional $4,000 design charge for tennis courts.
Staff noted that insurers often issue an initial payment smaller than the full estimated loss and that the county must justify additional costs after construction with bids and invoices. Ethan said staff has seen that insurers sometimes pay a portion (for example, about $1.5 million) and that the county may have to substantiate the remainder as work proceeds.
To date the county has expended $531,520 on Tamarack‑related repairs and replacements (tennis courts, telemetry/power systems, a destroyed county vehicle and related work). "To date, $531,520 has been spent without being reimbursed," Ethan said. Staff reported receipt of an $87,000 check last week for the Bear Valley playground reconstruction, reducing the outstanding unreimbursed amount.
The county maintains a separate Tamarack Fire fund containing Cal OES and other advances; staff reported $1,189,838.73 in that fund (which includes a $1,000,000 Cal OES advance and a $200,000 Prism advance). Finance Director Klaus Leidenbauer said he would like to see about $500,000 returned to the general fund to reimburse prior general‑fund expenditures, but said the Board of Supervisors will decide the final allocation when staff brings an item forward after the insurer's final statement of loss and payment.
Next steps: staff await the final statement of loss from Prism, expect to bring an item to the Board for disposition of proceeds, and will pursue additional justification if construction bids exceed the insurer's initial payments.
