Feature Article

Wildfires in Okanogan County, : Recovery from Disaster Scott D. Furman

The statements made or opinions expressed by authors in Fair & Equitable do not necessarily represent a policy position of the International Association of Assessing Officers. (Article photos are by Kristen Wall, Lifesong Photography unless otherwise noted.)

he week of July 14, 2014, Wash- 4,765 privately owned parcels of land. ington state experienced the larg- It destroyed 98 single-family residences, Okanogan County, est single in its history, 96 cabins, 23 detached garages, and 93 Washington, Fact Sheet the , which covered miscellaneous outbuildings for a total T Population: 41,120 year-round a large area of north central Washington structure loss of $11.5 million. residents (2010 Census) state including portions of Okanogan The Okanogan County Assessor’s Of- County. The fire, caused by four sepa- fice took the lead in identifying loss Area: Approximately 3,400,000 rate lightning strikes, affected more than caused by the . The office had acres of land; 5,315 square miles; 250,000 acres of public and private land. the aerial imagery, the parcel layer largest county in the state The fire affected 4,800 parcels of pri- maps, the database identifying parcel Land ownership: Approximately vately owned land in Okanogan County. ownership, drawings, photographs 25 percent privately owned. Public The fire destroyed 322 homes, including of structures, and most importantly lands owned by U.S. Forest Service, approximately 260 single-family resi- knowledge of and familiarity with the Bureau of Land Management, Wash- dences, and more than 250 outbuild- area. This article describes how the ington State Department of Natural ings, totaling $30 million in assessed Okanogan County Assessor’s Office Resources, Washington State De- valuation loss. was instrumental in putting together partment of Fish and Wildlife, and On August 14, 2015, Okanogan Coun- the initial list of affected properties for the Colville Confederated Tribes. ty experienced yet another devastating both fire events. The office developed Terrain: Lush river valleys, tim- group of wildfires caused by multiple and implemented strategies for quick- bered mountains with freshwater lightning strikes. In aggregate, the ly and accurately adjusting values and lakes and high desert shrub steppe , as it was taxes so that taxpayers knew they were not paying property taxes on some- called, was larger than the 2014 Carlton Real property: 46,000 parcels Complex fire, but because the fires did thing they had lost in the fire. Key to not merge, it is not considered the larg- these efforts was collaboration with the Assessed valuation: $4 billion est single wildfire. The four fires cov- software provider, the federal and state ered 510,000 acres, or 797 square miles, emergency management teams, and the Assessor’s office staff: 13 again on public and private lands. The county treasurer’s office. Okanogan Complex Wildfire affected

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The Carlton Complex Fire Interagency Incident Management County Treasurer, Leah McCormack, After two years of severe drought, light- Team, the Federal Emergency Manage- extended the deadline for payment to ning started four separate fires in July ment Agency (FEMA) team, and the fire-affected property owners from 2014. Driven by high winds, these four Red Cross so they could do an inventory October 31 to November 31. The as- fires merged into the largest single fire for themselves. sessor’s office processed all the tax roll in the history of the state of Washington. The state and federal emergency man- corrections by the beginning of October agement teams were astonished that the and sent them to the treasurer’s office Several years previously, the Okano- for processing. gan County Assessor’s Office had been assessor’s office had not only the tech- the beta tester in Washington state for nology but also the knowledge to use it, The assessor’s office tried its best to Thomson Reuters’ new TerraScan field as well as the knowledge of the land and quickly and accurately adjust value and device. Although it took a great deal of the roads. They were very impressed taxes so that taxpayers knew they were resources and employee angst to get the with the assistance the office provided not paying taxes on something that they device working properly, the office was them and were very thankful. lost in the fire. That the office was able to able to do so. The field device was an Once the initial damage assessment meet that challenge is due to its partner- instrumental tool during the fire as ae- spreadsheet had been created, the next ship with the software provider, as well as rial imagery and the assessor’s database step was the property tax roll. Because with the county treasurer and her staff. could be loaded onto the field devices, of state law, the assessor’s office is re- Much of the credit for this goes to the enabling the appraisers to go into the quired to adjust values and thus taxes employees in the Okanogan County fire zone and identify loss by parcel. in the current year. Second-half taxes Assessor’s Office. The crew is expe- During the first week of the fire, ap- were due October 31, 2014. With the rienced and knowledgeable, many of praisers went into the fire zone and assistance of the software provider, the them having worked in the office for created the initial damage assessment office developed a process to adjust not more than 15 years. spreadsheet, identifying all structure only structure loss, if warranted, but loss. This was a critical piece of the re- also land values. All these adjustments Dealing with the Aftermath of the covery because many service providers were coordinated with the treasurer’s Carlton Complex Wildfire used the assessor’s list to verify affect- office. When a value is changed, the tax- The initial phase of dealing with the ed landowners, thus providing service es change too. Assessor staff met with wildfire comprised two parts: to those who needed it. Some people many people affected by the wildfire 1. Sending appraisers into the fire who were not affected by the fire were in the office. Some had only the shirts zones and creating the initial attempting to obtain services. This list on their backs and smelled of smoke. damage assessment spreadsheet served as a screening device for first- The office processed more than 3,800 that identifies all structure loss responders. tax roll corrections and sent them to the County Treasurer, either to issue a by parcel. Weeks 2 and 3 were spent going through new second-half tax bill or to process a 2. Creating a fast-track method for the fire zone with the Washington refund of 2014 taxes already paid. The taxpayers to obtain the destroyed

Worksheets illustrate a planning process that combined improvisation and technology to overcome multiple challenges.

4 Fair & Equitable • July 2016 property form. Although this land within the fire zone had been neg- that timbered parcels lost more of a form was not necessary because atively affected, but by how much? percentage of their market value than of the State of Emergency de- Without any comparable sales to guide nontimbered parcels. clared by the governor, many valuation of the land after the fire, Based upon these conversations, two dif- affected landowners felt the need the office contacted county assessors ferent land adjustments were developed: to fill out the form. in other states to find out what they 1. Timbered parcels, 50 percent The fast track included the following had experienced. Staff talked with reduction in market value actions: several assessors in Colorado who 2. Nontimbered parcels, 25 percent • Creating a downloadable link for had experienced wildfires in the past. reduction in market value. the destroyed property form on Realtors, bankers, and appraisers the home pages of both Okanogan were also contacted and asked about Two different adjustments regard- County and the assessor’s office. their experience with past wildfires ing market land value were required in Washington state and about values because, due to the lack of rainfall in • Training staff on the use of the before and after wildfires. It was found Eastern Washington, it may take 100 destroyed property form, and making a stack of the forms read- Figure 1. Fire boundaries identified on a topographic map ily available in the office with an explanation cover sheet. • Preparing public service announce- ments for local radio stations informing taxpayers about the de- stroyed property form and process and how to contact the office. • Preparing public service announce- ments for the local newspapers explaining the destroyed property form and process and how to con- tact the office. • Making staff ready and available during office hours to work with wildfire-affected landowners and answer their questions. The first month was basically spent gathering all fire-related information. Once the fire was out, the office was able to obtain aerial imagery (see fig- ure 1) showing the fire zone boundary from the Okanogan County Planning Department. With the department’s help, assessment staff was able to iden- tify all affected parcel numbers within the fire zone.

Handling a Disaster without a Workbook or Manual It was determined that the assessor’s office would have to adjust not only structure loss, if warranted, but also land values within the fire zone. It was apparent that the market value of the

Fair & Equitable • July 2016 5 Feature Article years to grow a stand of timber. On the It seemed that this land was not worth As a result, landowners could have a other hand, nontimbered parcels recov- as much as prior to the fire, but how situation in which their market land er sooner and thus their values bounce much? There was no time to wait for value is reduced but their taxable land back more quickly. sales because fire-ravaged landowners value is not. By using aerial imagery, timbered par- demanded immediate action. The legislature also created exemptions cels versus nontimbered parcels were In retrospect, while there have been few for senior citizens who are 61 years of identified. Based upon a special request sales within the fire zone, it appears that age or older and have a combined gross from the assessor’s office, the software the nontimbered land value adjustment income of $35,000 or less. Based upon company coded the affected parcels could have been lowered to a 20 percent their income, they receive a reduction with either a timbered code or a non- market value land loss. For the timbered in property taxes associated with their timbered code. By coding the parcels, parcels, the jury is still out on the mar- home and up to one acre unless local land values could be adjusted en masse ket value land loss. zoning requires more acreage within the rather than by individual parcel. Once all affected parcels were coded home site. This taxable value, according Okanogan County, as well as all coun- with the appropriate code (i.e., timbered to state law, is frozen in time based upon ties in Washington state, is on an annual versus nontimbered) and the two land the date of application and approval. cycle of revaluation. This allows values adjustments had been set, the office to be adjusted each year if warranted was able to adjust market land values en Once all affected parcels were coded by sales. Once property within the fire masse, either with the timbered adjust- with the appropriate code (i.e., zones begins to sell, the values can be ment or the nontimbered adjustment. timbered versus nontimbered) and adjusted accordingly. While this adjustment affected market The stigma associated with a fire zone is land value, many parcels were in special the two land adjustments had been real but hard to quantify without many tax classifications. Washington State good sales. The stigma associated with enacted the Open Space Act in the set, the office was able to adjust the nontimbered parcels will dissipate early 1970s to help promote and retain market land values en masse, either over time, following the natural recov- environmentally sensitive land—com- ery of the land. The stigma associat- mercial agricultural land and commer- with the timbered adjustment or the ed with the timbered parcels, where cial timber land. All states have similar stands of black, scorched trees stand laws on their books. In exchange for nontimbered adjustment. in silent remembrance, will go on for retaining the sensitive nature of the en- many years. vironmentally sensitive lands (retaining and promoting commercial agricul- Parcels classified as open space lands or tural lands or retaining, growing, and parcels with senior citizen exemptions harvesting commercial timberlands), had to be pulled separately and reviewed landowners receive a reduced land val- individually because the value the land- ue, which in turn, lowers their property owner paid tax on was a subsidized value tax bill. This is a form of subsidy that and did not reflect market value. lowers the property tax bill related to Once all the parcels were identified as the land value. either market value parcels or special If a parcel is in one of the special val- valuation parcels and were coded cor- uation classifications, it would have a rectly, the office was able to mass-adjust market land value and also an assessed land values on the market value parcels. land value, which would be less than All special valuation parcels had to be the market value and which would drive reviewed and their values calculated the tax. individually. The fire affected market land value but Improvement loss on the affected par- did not affect the open space land value cels had to be individually adjusted by because the open space land value is using the initial damage assessment derived from a formula as prescribed by spreadsheet, and matching this list with A helicopters provides strategic water state law or as provided to the assessor’s the destroyed property forms that had drops at the front lines of the wildfires. office by the state each year. been submitted.

6 Fair & Equitable • July 2016 The county treasurer’s office was kept fell from the sky like snow. Sirens wailed to adjust improvement values first and in the loop throughout; the assessor’s in the distance for days. Hysteria was then land values. However, the software office communicated with it on a daily palpable. You did not know where the was not designed to process two de- basis, knowing full well that the asses- fire was from day to day. Many, many stroyed property events in the same year. sor’s work would affect the treasurer’s people were evacuated from their homes A work-around had to be developed to office eventually. and had set up camp in the parking lots accurately calculate the adjustment, and All tax roll corrections were forwarded of Wal-Mart and Home Depot as well as this created much more work. It also led to the county treasurer’s office for pro- in many other locations. All motels were to more work for the county treasurer cessing. The county treasurer either had full. You had to drive 90 miles south to because in some instances, two separate to send revised second-half property tax Wenatchee to get a room. There was a refunds were issued. It also led to tax- statements or issue refunds for overpay- smoke inversion that went on for weeks payer confusion as well. ment of 2014 taxes paid. that made people sick. It’s the worst I So, after the Okanogan Complex Wild- have seen around here in my 57 years. All this work was going on while the of- fire, the improvement adjustment, if fice was attempting to continue to carry warranted, and the land value adjust- out its normal work—finishing up the For several days during the height of the ment, if warranted, were combined into one tax roll correction. This saved physical inspection area, valuing all new fire, 9 of 12 employees of the assessor’s construction, listing personal property, considerable time and effort and led to renewing senior citizen exemptions, office were evacuated from their homes. less work for the county treasurer’s of- processing open space applications, and fice and less confusion for landowners. updating parcel lines as new subdivisions You could not see across the street. The Less time was spent doing work for the were recorded, among many other duties. smoke was so thick you could feel it. Ash state and federal emergency manage- ment teams. After investing so much Okanogan Complex Wildfire fell from the sky like snow. Sirens wailed time and effort the first year with them, the office learned that there would be no And then it happened again. The in the distance for days. Okanogan Complex Wildfire was ac- reimbursement for the work performed tually four separate fires, all caused by for them, even though many had prom- lightning, which began on and around ised that the office would be reimbursed August 15, 2015. A Slightly Different Approach for its time and effort. At the exit inter- view in December 2014, FEMA officials The second time around, the assessor’s For several days during the height of the informed the office that the work was office learned to go more slowly. The fire, 9 of 12 employees of the assessor’s performed during the “normal course initial instinct is to go, go, go, help, help, office were evacuated from their homes. of work” and not eligible for reimburse- help. In the aftermath of the Carlton You could not see across the street. The ment. Individual landowner assistance Complex Wildfire, the office attempted smoke was so thick you could feel it. Ash was also denied by FEMA at that time.

Other Challenges A primary challenge for me, as the Assessor, was that while I was in the trenches reviewing and calculating in- dividual parcel adjustments and tax roll corrections on a daily basis, I also had to step back and try to analyze processes from a macro perspective as well. How will this affect the taxing districts? How will this affect the treasurer’s office? Are state-mandated duties being completed on time? How are the employees hold- ing up? Are they ready to snap under The town of Pateros in Okanagon County, Washington, was one of the places hardest the pressure, or are they stepping up hit by the Carlton Complex blaze in 2014. There is a sharp demarcation between and taking care of business? the burnt areas and the areas that survived..

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There is no doubt in my mind they could not be accessed by people who did reduce the threat of wildfires this sum- stepped up and took care of business. not belong there. Road blocks had been mer. However, there is a high likelihood I am very proud of the work that the set up, and the National Guard was in of flooding this spring in portions of the employees of the Okanogan County As- charge of them. The media personality county because of the high snowpack. It sessor’s Office did and how they treated promised that if the crew came across all depends on Mother Nature, and we taxpayers with respect and kindness landowners who were sifting through the are keeping our fingers crossed. during this time of stress. rubble of their former home, they would Another element I had to deal with keep moving and not victimize them by was the media. Television crews from jumping out of their car and running up Spokane and Seattle were requesting to them with a microphone, and they interviews. They also asked to travel held up their end of the agreement. with the appraisers into the field. Media outlets from all over were calling and What Will 2016 Bring? interviewing me via the telephone. The winter of 2015–2016 was a very I allowed television crews to shadow an good winter with plenty of snowpack. appraiser into the field. The fire zones It is hoped that the snowpack will help

Scott D. Furman is the Okanogan County, Washington, Assessor. A lifelong resident of Washington state, he began his career as an appraiser trainee in 1984 and became asses- sor in 1998. He is the longest serving assessor in Okanogan County history. He is a past president of the Washington State Association of County Assessors (2005–2006). The Okanogan County Assessor’s Office won the Thomson The Okanogan County Assessor’s Office is Reuters Public Sector Jurisdiction of the Year award in 2015. located in the Okanogan County Court- house building. (photo by Scott Furman)

‘It Happened to Me, Too.’ Scott D. Furman

On January 7, 2015, I was working in my office around My wife and I were both at work. The fire was estimated 2:00 p.m. when one of the appraisers came in and said, to have been burning for one hour prior to the call to the “Omak [the county fire department] just toned out to 605 fire department. Ironwood, flames through the window. “You’re kidding,” The cause of the fire was “indeterminate.” We think that I said. “No, I’m serious,” was the reply. “Oh no, that’s my old electrical wires started it. house!” I exclaimed as I ran from the office. We lost everything. Total loss. All belongings. All family Out the door I ran, driving as fast as I ever have, using heirlooms. All family photos. We lived in a motel for two the back way to my house. I knew if I went the usual way I months, and then in a travel trailer in our backyard for five would get stuck in traffic. I was hoping all the way that it more months while the house was being rebuilt. was just a false alarm. As I got nearer to my home, I looked for signs of fire; there was no smoke. As I came around So when people come into the office and say, “You don’t know the last corner before making visual contact, my hopes how it feels,” I can say, “Yes, yes, I do. I too lost my house. began to rise. Just a false alarm I thought, until I saw the I know the feeling of emptiness, loss, and helplessness.” It’s police car blocking traffic and then one, two, three fire not a good feeling—one that I hope I don’t experience again. trucks. Smoke billowed from every crevice of the house, It’s a lousy way to get a new house. firefighters were bashing in the front door and walking in a 1½-inch fire hose on full blast.

8 Fair & Equitable • July 2016