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Wildfire Costs <br />Wildfires of all sizes incur costs that include damages to property, economic disruption, impacts on public health, <br />and the cost to contain or suppress the fire. Preventing catastrophic wildfires, wildfires that cause substantial <br />undesired losses to society and the environment (CCST 2020), is the intent of the Livermore -Pleasanton Fire <br />Department's defensible space standards and this wildfire appendix. Catastrophic wildfires have costs that greatly <br />exceed the tree maintenance costs recommended in this section, which are intended to prevent or reduce the <br />likelihood of catastrophic wildfires in the WUI areas of the City. <br />As an example, the 2020 SCU Complex, probably the closest catastrophic wildfire to the City, had a total acreage <br />of 396,824 and burned from August 16 to October 1, 2020. The fire destroyed 225 structures and damaged 26 <br />additional structures. The SCU complex cost approximately 68 million dollars to contain (NIFC 2020). Estimates of <br />the costs related to the destroyed buildings are not available, but using the median price of homes sold in the <br />County in 2020 ($1,027,860.00)(CA EDD, 2024) multiplied by the total number of structures destroyed (225) <br />comes to more than 231 million dollars. Wildfire prevention, including tree maintenance, is overwhelmingly worth <br />the investment compared to the cost of damages from the fire. As a final example, the Lick Observatory, which the <br />2020 SCU Complex threatened, was valued at the time of the fire at approximately $77 million. The Lick Observatory <br />spent approximately $864,000.00 on vegetation management work in 2007 and 2017. CAL FIRE spent <br />approximately $360,000.00 to suppress the fire at the observatory, and the observatory ultimately experienced <br />$3.7 million in damages. Wildfire prevention measures resulted in a $73 million avoided loss (CAL OES, 2023). <br />Property Insurance Considerations <br />Property insurance companies can place demands on property owners to perform vegetation management work on <br />their property in order to maintain coverage or prevent their policy premiums from increasing. While these demands <br />do not carry the same legal authority as fire department requirements, losing coverage or paying significantly more <br />in policy premiums can be just as impactful to property owners as a notice of violation from the City. Vegetation <br />management work can include removing trees from the property. This can include trees that can be considered a <br />foreseeable risk, such as dead or seriously damaged trees, but can also include healthy trees that are near a <br />building or overhang the roof in WUI areas. Insurance companies have their internal processes for evaluating and <br />determining risk and may not consider the tree condition, maintenance history, City tree permit criteria, or fire <br />department vegetation management standards. State regulations (PRC 4291 and GC 51182) allow insurance <br />companies to require fuel modification, including tree trimming or removal, that is greater than what is required by <br />the fire department. <br />Property owners receiving a requirement to remove a tree on their property from their insurance companies can be <br />in a situation that ultimately does not benefit anyone. For the property owner, accepting the demands of the <br />insurance companies can incur tree removal costs that can be several thousand dollars for large trees or face the <br />loss of property insurance coverage. For the City, the insurance company demands that removing a tree can pit <br />property owners against City staff who have to enforce the City's Tree Preservation Ordinance. These demands can <br />force property owners to spend money and effort on removing a tree that the fire department standards do not <br />require and take away from vegetation management efforts that would minimize the risk of wildfire spread on the <br />property. Finally, these demands from the insurance company do not consider the environmental services and <br />benefits contributed by the tree that hold real economic value for the City. <br />APPENDIX A -WILDFIRE <br />29 of 219 <br />