DISASTER FINANCIAL ASSISTANCE (DFA)

1. DISASTER FINANCIAL ASSISTANCE (DFA) Emergency Preparedness Conference October 4-6, 2005

2. Today’s Topics FOR LOCAL AUTHORITIES: • DISASTER FINANCIAL ASSISTANCE: • Response costs (during disaster) • Recovery costs (post-disaster) • Community Recovery (post-disaster • PROVINCIAL INTEGRATED RECOVERY COUNCIL • INTRODUCTION OF GUIDELINES • Financial Assistance • Community Disaster Recovery FOR PRIVATE SECTOR • DISASTER FINANCIAL ASSISTANCE: • Recovery costs (post-disaster)

3. Authority to Pay DFA • Disaster Financial Assistance (DFA) is authorized by: • Emergency Program Act, Section 20; and • Compensation and Disaster Financial Assistance Regulation • DFA is a “Helping Hand"

4. For Local Authorities –EOC Finance Activation • In a local disaster, the Emergency Operation Centre (EOC) Finance Section should be activated early - to track response costs - obtain a PEP task number - receive provincial authorization e.g. via Expenditure Authorization form (EAF) • Critical DFA concepts – Eligibility and Documentation

5. For Local Authorities –‘Response’ Definition • Response Measures to: • save lives • reduce suffering • safeguard public health • protect property and environment • reduce economic and social impacts • Examples of costs that serve response objectives: • transportation, food, shelter, and clothing for evacuees • emergency medical care to casualties • containment of the hazard • Communications, facilities rentals, security

6. For Local Authorities –Eligible Response Costs • Eligible response costs are paid at 100% • Response costs separate from recovery costs • Response costs include: • overtime wage and benefits • materials, supplies, and rented equipment • service contracts related to the response measures • travel, accommodation, food for emergency response personnel • Fuel, oil and lubricants consumed to operate ownedequipment

7. For Local Authorities – Response Process for Reimbursement • Step 1– Document Rationale for Response Expenditure • Step 2 – Pay Invoices • Step 3 – Collect and Organize Documentation • Step 4 – Prepare Response Claim • Step 5 – Submit Completed Response Claim to PEP region

8. For Local Authorities – DFA ‘Recovery’ Definition • Efforts to: • return facilities and infrastructures owned and maintained by Local Authorities to pre-disaster condition where they are essential to their functions and operations and where insurance is not available • Costs that serve recovery objectives, including: • repair or replacing public facilities • replacing materials • clean up and debris removal

9. For Local Authorities – Eligible Recovery Costs • Eligible recovery costs are paid at 80% of the accepted claim which exceeds $1,000 per event • Recovery costs include: • inspection, assessments, planning or design to determine costs of restoration or replacement of critical infrastructure • materials, supplies, and rented equipment • service contracts related to the recovery measures • foundations, footings, seals, slab floor, pilings, structural walls • framing, roofing, doors, windows, material, wall coverings, mouldings, fixtures, finishings • replace/restore protective works designed to protect banks from erosion which were damaged by the disaster

10. For Local Authorities - Recovery Process for Reimbursement • Step 1– Request Disaster Financial Assistance • Step 2 – Complete ‘DFA Registration of Intent to Claim” form • Step 3 – Deliver ‘Recovery Plan’ and Documentation • Step 4 – Submit ‘Recovery Claim Submission’ form and Documentation • Step 5 – Receive Reimbursement

11. For Local Authorities – Community Recovery Defined • Effects of a disaster depend on the type of disaster, length and severity of the event • Community, family and individual recovery is influenced by social economic conditions • ‘Community actions to limit losses, reduce suffering, and restore the psycho-social and economic viability of the community’

12. For Local Authorities –Community Recovery Large scale community recovery typically requires collaboration among multiple stakeholders, including: • local authorities • commercial operations • service providers • volunteer groups

13. For Local Authorities - Funding Community Recovery • Local Authorities • PEP Disaster Financial Assistance • Private Donations

14. For Local Authorities - Eligible Community Recovery Costs Community Recovery Costs that are eligible for DFA : • rental of large public halls for presentations • rental of office equipment for Recovery Centre • service contracts & overtime wages for recovery personnel • warehouse space & transportation costs to manage donated goods • advertisements of recovery activities in local media

15. For Local Authorities – Community Recovery Process for Reimbursement • Step 1–Submit ‘Community Recovery Claim Submission’ form and support Documentation (invoices, contracts, and overtime expenses, etc. with proof of payment) • Step 2 – Receive Reimbursement at 80% of the accepted amount that exceeds $1,000. Note: $1,000 deductible is per event and includes Local Authority infrastructure recovery and community recovery costs

16. PROVINCIAL INTEGRATED RECOVERY COUNCIL (PIRC) • New council co-chaired by the Provincial Emergency Program’s Manager of Emergency Social Services and Manager of Recovery/Disaster Financial Assistance • A forum for collaborative recovery management • Coordinates planning efforts by relief and support organizations/ministries engaged in recovery with provincial capacity • Fosters effective recovery programs to support local authorities

17. GUIDELINES FOR LOCAL AUTHORITIES Introduction of Guidelines: • Financial Assistance for Response, Recovery and Community Recovery caused by a natural disaster • Community Disaster Recovery

18. DISASTER FINANCIAL ASSISTANCE: A Helping Hand to Private Sector Disaster Financial Assistance is provided to ease financial hardships when the cost of damage exceeds what individuals might reasonably be expected to bear on their own.

19. For Private Sector – Who is Eligible to Apply for DFA? Eligible claimant categories: • homeowners • tenants • small business owners • farm operation owners • charitable/volunteer organizations Claimants must meet specific eligibility requirements.

20. For Private Sector – DFA Limitations on Losses • Applies only to uninsurable (not uninsured) losses • Limited to replace or restore to pre-event condition: • the basic necessities of life or items essential to a home, livelihood or essential community service, which includes personal effects and structures • Examples of items not covered: • loss of income or production • residential land erosion, landscaping • installation of new protective measures • recurring claims where preventative measures have not been taken

21. DFA for Homeowners DFA provides reimbursement to replace/restore: • essential contents • essential home structure Homeowner eligibility: • The damaged/destroyed structure must be owned and occupied by the claimant, and it must be the claimant’s principal residence (seasonal residences are not eligible); and • the owner must have received or been eligible to receive the BC Homeowner’s Grant in the disaster year.

22. DFA for Residential Tenants DFA to repair or replace damaged or destroyed eligible personal effects are claimable if: • The residence is occupied as the tenant’s principal residence; and • the majority of the individual’s personal effects are located at that location.

23. DFA for Small Businesses Eligibility criteria for small businesses: • managed by the owner on a day-to-day basis; • the business income provides the majority of owner’s income; • gross sales less than $1 million/year; • employs less than 50 people at any one time; and • without the assistance, its future would be placed in financial jeopardy;

24. DFA for Farm Operations Eligibility criteria for a farm operation: • identified by the British Columbia Assessment Authority as a developing or established agricultural operation; • is owned and operated by a person whose full-time employment is as a farmer; • is the means by which the owner of the farm operation derives the majority of their gross income; and • without assistance, its future would be placed in financial jeopardy.

25. DFA for Charitable Organizations Is a not-for-profit charitable organization that: • provides a benefit or service to the community at large; • has been in existence for at least 12 months; • is registered under the Society Act; and • without assistance, its future would be placed in financial jeopardy.

26. DFA for Private Sector –Claim Processing • Complete/submit the claimant category “DFA Registration of Intent to Claim” form to PEP. • PEP assigns an adjuster, who will arrange to visit the claimant to assess damages and discuss DFA eligibility issues. An appraiser may also be assigned for extensive structural damages. • Upon completion/receipt of all information/ documentation, an adjuster submits a report to the PEP recommending DFA eligibility/amount payable. • PEP sends the claimant a letter on the final decision. If there are eligible costs payable, a cheque is mailed under separate cover.

27. How a DFA Claim is Calculated 1. Eligible claim expenses 2. Less the first $1,000 3. Balance @ 80% The total payable amount on any one claim cannot exceed $300,000 for any one event. $11,000 - $1,000 $10,000 x 80% $8,000

28. Before the Adjuster Arrives • Where possible, damaged contents should NOT be discarded until the adjuster arrives. Remove contaminated items from the structure and store outdoors. If items must be thrown away, take pictures of the items. • Prepare a list of lost or damaged items while they are still fresh in your memory. • For structural damage, if the repairs must be done before the adjuster arrives, take pictures of the damage before it is repaired. • Record the names and keep a log of the dates and times that you, your family and friends, or employees in the case of small businesses, spend cleaning up.

29. Before Adjuster Arrives (cont’d) • Gather receipts or invoices if you have rented or hired equipment/businesses to assist you with clean up or to prevent further damage. • For small businesses/farms, obtain a copy of the owner’s most recent financial statement, with personal and corporate income tax returns. • All claimants should obtain, for the adjuster: • a certificate of title and a receipt to confirm the home owner’s grant was paid or, in the case of tenants, a lease/rental agreement; and • a letter from your insurer for the affected property that states the losses suffered were not insurable.

30. Contacts for DFA • PEP Recovery Office Toll Free: 1-888-257-4777 Reception: (250) 952-5505 Fax: (250) 952-5542 Mailing Address: PO Box 9201 Stn Prov Govt Victoria BC V8W 9J1 • The telephone and fax numbers are also listed on the “Intent to Claim” form.

31. DISASTER FINANCIAL ASSISTANCE We are here to help. Questions??