Damages and emergency response costs related to the early days of the multiple wildfires that burned in Los Angeles are anticipated to reach $385 million with that figure expected to grow, according to a preliminary report issued Wednesday.
During a discussion with City Council members, City Administrative Officer Matt Szabo said numerous facilities and public infrastructure were damaged as a result of the fires. He anticipated that the city will be eligible for at least partial reimbursement by the Federal Emergency Management Agency.
The estimate covered damages incurred from the start of the fires on Jan. 7 to Jan. 10. Of that $385 million, $350 million is associated with damages to infrastructure and city properties.
Separately, Szabo estimated more costs are expected from the period of Jan. 7-17, which could reach at least $24 million just for staffing and overtime.
Some of the major costs include at least $75 million in damages at the Department and Water and Power related to distribution stations, equipment and wiring.
Additionally, damages to DWP-owned streets and outdoor lighting are costing nearly $20 million.
The LA Public Library has reported at least $55 million in damages, partly due to the loss of the Pacific Palisades Library and its books.
Significant smoke, ash and dust impacted HVAC filters at 73 city libraries,according to Szabo.
LA Sanitation reported nearly $50 million in damages with full Replacement of stormwater structures and pumping plants accounting for the majority of that cost.
Street lightning reported about $16 million in damages, and thebDepartment of Recreation and Parks estimates another $150 million.
The city is expected to front 100% of the costs for damages and its emergency response. But under FEMA’s reimbursement model, officials anticipate recovering 75% of that money.
Typically, the remaining 25% would be reimbursed by the state, Szabo added.
Former President Joe Biden previously announced that the federal government would cover certain costs for 180 days, which Szabo noted covers two categories — staffing and debris removal.
The city is expected to refine its damage assessments, apply for disaster relief and meet with FEMA officials in late February.
City Councilwoman Monica Rodriguez highlighted the city’s financial challenges Wednesday and questioned how the costs would impact the reserve fund.
In response, Szabo noted his office is working to identify funds tobprotect the reserve fund, which is already below the city’s 5% policy.
Particularly, the city is looking through special funds that could be used to front costs while money from FEMA comes in.
That process could drag out for a year or sometimes several years, Szabo added.
“We do the best that we can to have our applications ready to go, ready for reimbursement,” Szabo said.
With Los Angeles facing a budget deficit as a result of overspending, liability payouts and labor contracts, Councilman John Lee emphasized that thecity can “no longer be business as usual. We need to make sure that, startingwith this budget, we really focus on the core services — what the city of LosAngeles expects from their tax dollars,” Lee said.
Councilwoman Traci Park, who represents the 11th District, which encompasses the Pacific Palisades, urged the CAO to develop plans for adequate staffing and resources needed for burn areas.
“As we are beginning the repopulation efforts, there is a ton of opportunity to get more workers on the ground,” Park said. “ … We need to look at every potential resource of getting bodies on the ground to get this toxic waste mess off the ground.”
In the city’s jurisdiction, the Palisades Fire burned 23,448 acres, and was among multiple fires that erupted in Los Angeles in the week of Jan. 7.