Risk Management User Group

1. Risk Management User Group December 4, 2008

2. WELCOMEMichael L. Hay, CRM, CGFM, CPPM

3. MEETING AGENDA Introduction Mike Hay 8:30 – 9:00 Legislative Update Jonathan Bow 9:00 – 10:00 Return to Work Danny Taylor TX Department of Insurance 10:00 – 10:15 BREAK 10:15 – 10:45 Safety and Security Sam Stone 10:45 – 11:45 A Tale of Two Storms Sam Arant Hurricanes Ike and Rita

4. LEGISLATIVE UPDATE Jonathan D. Bow Executive Director

5. RETURN TO WORK Danny Taylor, CRC Texas Department of Insurance

6. BREAK See you in 15 minutes

7. “A Tale of Two Storms”Hurricanes Rita and Ike Samuel H. Arant State Office of Risk Management

8. Presentation Outline • Comparison of Hurricanes Rita and Ike • Discussion of Hurricane Rita • Discussion of Hurricane Ike • Lessons Learned from Hurricane Rita • Comments and Recommendations as a Result of Both Hurricanes (presenter and audience)

9. Hurricane Rita Category 3 storm Texas landfall near Sabine Pass at 0238 hours on 9/24/05 Winds 115 mph 3 of 7 direct deaths, 113 of 120 indirect deaths occurred in TX Hurricane Ike Category 2 storm Texas landfall east end of Galveston Island 0210 hours on 9/13/08 Winds 110 mph 48 of 82 direct and indirect deaths occurred in TX, with 202 missing Hurricane Comparison

10. Hurricane Rita $11.3 billion in property damage (U.S.) 9th costliest U.S. Atlantic hurricane 4th most intense Atlantic hurricane Most intense tropical cyclone ever observed in Gulf of Mexico Hurricane Ike $27.0 billion in property damage (U.S.) 3rd costliest U.S. Atlantic hurricane Hurricane Comparison cont.

11. Hurricane Rita • Governor Perry recalled all emergency personnel (1200 Texas National Guard,1100 Texas State Guard members, several hundred Texas Game Wardens) from Hurricane Katrina recovery efforts in anticipation of Hurricane Rita’s landfall. • The federal government deployed 11 Disaster Medical Assistance Teams and mobile medical hospitals in East Texas. The teams treated 7500 patients during and following Hurricane Rita. • Governor Perry ordered and TXDOT implemented a contraflow lane reversal plan on I-45 north to Dallas, I-10 west to San Antonio, and U.S. 290 to Austin on 9/22/05 (two days before landfall).

12. Hurricane Rita cont. • Galveston County officials ordered staggered mandatory evacuations of county residents beginning at 1800 hours on 9/21/05 (2½ days before landfall). The evacuation included all patients of UTMB to other regional hospitals, and including 400 TDCJ hospitalized offenders to the UT Health Center in Tyler. • Houston mayor urges residents to evacuate the city on 9/21/05. By 1500 hours, all freeways are at a stand-still. • Golden Triangle residents cannot respond to mandatory evacuation orders due to evacuation routes full of Houstonians. • Traffic volumes did not ease for 48 hours as 3 million Gulf Coast residents evacuated in advance of Hurricane Rita.

13. Hurricane Rita cont. • It is estimated 2 million residents lost electricity during and after the storm. • Some areas of the Golden Triangle did not have power for six weeks. • Displaced residents were offered up to 60 days in hotels, followed by FEMA –supplied trailers, if needed. Generators, chainsaws, and monetary assistance was also offered by FEMA. • On the morning of 9/23/05, 23 people died in a bus transporting Rita evacuees to Dallas. 31 deaths were reported in Harris County, all of which were indirect deaths (evacuation and cleanup activities).

14. Hurricane Rita cont. Workers’ Compensation Claims Involving Hurricane Relief Efforts (State Employees) • Twelve (12) claims to date involving Hurricane Katrina relief efforts. • Five (5) claims to date involving Hurricane Rita relief efforts. • Eight (8) workers’ compensation claims involved Department of Public Safety employees. Next highest number of claims (4) involved Texas Parks and Wildlife Department employees. • State Agencies that reported workers’ compensation claims: Texas Parks and Wildlife Department, Texas Department of Public Safety, Texas Health and Human Services Commission, Governor’s Task Force (TEEX), and the University of Houston.

15. Hurricane Rita cont. • Causes of Workers’ Compensation Claims • Possible contaminated water (2 claims) • Possible contaminated air (5 claims) • Wind from storm (closing door on DPS Trooper’s hand) (1 claim) • Putting up tents (1 claim) • Lifting activities at evacuation center (1 claim) • Clearing debris (1 claim) • Providing medical care (1 claim) • Evacuation activities (3 claims)

16. Hurricane Rita cont. • Workers’ Compensation Injuries • Upper respiratory infections (5 claims) • Contact dermatitis (2 claims) • Twisted ankle (1 claim) • Low back strain (1 claim) • Needle stick (1 claim) • Fracture of hand (1 claim) • Tendonitis of hands (1 claim) • Abrasions of leg (1 claim) • Insect bites (1 claim) • Heat exhaustion (1 claim) • Shoulder strain (1 claim)

17. Hurricane Rita cont. • Property and Casualty Losses • Lamar University, Lamar Institute of Technology, Lamar State College – Orange, Lamar State College – Port Arthur • $38.6 million loss • Damage to every building on campus • University closed for 17 days • Causes of loss were wind, wind-blown rain and flooding • All buildings were not insured • $12.9 million from FEMA on the condition that damaged buildings would be insured once repaired • $25.7 million from State of Texas (HB63)

18. Hurricane Rita cont. • Property and Casualty Losses • TPWD • $3.6 million loss • Damage to 8 state parks, 3 wildlife management areas, one fish hatchery, and one sea center • Causes of loss were wind and wind-blown rain • No insurance • $3.2 million from FEMA on the condition that damaged buildings would be insured once repaired

19. Hurricane Ike • On 9/10/08 (2½ days before landfall), President Bush made an emergency declaration for Texas in advance of Hurricane Ike. The emergency declaration made federal money available for preparations and evacuations. • On 9/9/08, The Texas Rural Water Association held meetings with state agencies to plan for water needs of gulf coast residents prior to and following hurricane landfall. • On 9/10/08, the Galveston City Manager ordered a mandatory evacuation of the low-lying west end of Galveston Island. Later (9/11/08), the mandatory evacuation was extended to all of Galveston Island and low-lying areas of Galveston, Harris, and Chambers counties.

20. Hurricane Ike cont. • Also, on 9/11/08 at 2019 hours, the National Weather Service issued a strongly worded bulletin regarding storm surge along Galveston Bay. The bulletin advised residents living in single-family homes in some parts of coastal Texas may face “certain death” if they do not evacuate. • It was reported that as many as 25% of Galveston and Port Arthur residents did not evacuate. • It was predicted that low-lying areas east of the projected eye (Morgan City, LA to High Island, TX) would be subjected to a storm surge up to 20 feet.

21. Hurricane Ike cont. • Electrical power customers in Southeast Texas began losing electricity before 2000 hours on 9/12/08. • Estimates range from 2.8 million to 4.5 million customers lost power before, during, and after Hurricane Ike’s landfall. • By 1600 hours on 9/12/2008, the rising storm surge’s waves began overtopping the 17 foot Galveston Seawall. • Widespread flooding include downtown Galveston: 6 foot deep in the Galveston County Courthouse, UTMB.

22. Hurricane Ike cont. • In Houston, the 75-story Morgan Chase Tower was damaged. Reliant Stadium was also damaged. Power outages were a major problem, minor flooding occurred. • On the Bolivar Peninsula, lost beach front homes exceeded 80 and approached 95%. • Bridge City and Orange, TX were inundated by the storm surge. The levee in Pt. Arthur remained intact. The Bridge City major stated that only 24 homes were not affected by the Hurricane Ike storm surge. Widespread flooding occurred in downtown Orange.

23. Hurricane Ike cont. Workers’ Compensation Claims • 21 claims to date involving Hurricane Ike relief efforts. • 7 workers’ compensation claims involved TDCJ employees. The next highest number of claims (2) involved Adjutant General employees, DPS employees, DSHS employees, TCEQ employees, and UNT employees. • State agencies that reported workers’ compensation claims include: GLO, Adjutant General, DPS, TABC, HHSC, DSHS, DADS, TCEQ, TDCJ, and UNT.

24. Hurricane Ike cont. • Causes of Workers’ Compensation Claims • Slip, trip, or fall (5 claims) • Vehicular accidents (4 claims) • Improper lifting (3 claims) • Exposure to a hazardous substance (2 claims) • Pushing or pulling (1 claim) • Twisting (1 claim) • Hand tool (1 claim) • Foreign matter in eye (1 claim) • Insect bite (1 claim) • Food poisoning (1 claim) • Exposure to a communicable disease (1 claim)

25. Hurricane Ike cont. • Property and Casualty Loses • TPFA • Minor damage to Ramirez State Office Building in Houston. • Roof flashing damage, fence damage, windows, debris • SHSU • Minor damage; i.e. trees and debris • SFASU • Minor roof damage; damage to stadium lights, windows, fence • Tree damage, debris removal • $222K in losses

26. Hurricane Ike cont. • Property and Casualty Losses cont. • TYC • Roof damage to two dorms and cafeteria at the Al Price Facility in Beaumont • Estimated Loss - $225K • TPWD • Damage to 6 state parks, 3 wildlife management areas, one state historical site (San Jacinto) • 3 state parks previously damaged by Hurricane Rita, damage to uninsured buildings • Damage to 3 other state parks, wildlife management areas, state historical site not insured • Complete loss – Galveston Island State Park, Sea Rim State Park (Sabine Pass, TX) • $32.3 million in losses; damage from wind and storm surge

27. Hurricane Ike cont. • Property and Casualty Losses cont. • U of H (Main Campus) • $31.4 million in losses • Major roof damage to College of Architecture, Recreation and Wellness Center, KUHT building, MD Anderson Library • Major water damage to Architecture books, practice floor of Alumni Building • Losses due to wind and wind-blown rain • U of H (Downtown) • $2.0 million in losses • Damage to Shea Street Building (windows and contents)

28. Hurricane Ike cont. • Property and Casualty Losses cont. • U of H (Clear Lake) • $2.0 million in losses • Damage to windows, contents of one building • Losses due to wind and wind-blown rain • U of H (Sugarland) • $500K loss • Damage to a building under construction

29. Hurricane Ike cont. • Property and Casualty Losses cont. • Lamar University • $5.8 million estimated loss • Interior water damage to Cardinal Village dorms, roof damage to Montagne Center, damage to windows of the Library, wind damage to stadium press box, roof damage to museum • Losses due to wind and wind-blown rain • Lamar Institute of Technology • $2.3 million estimated loss • Damage to roof and contents of Technology Center and Building 5 • Losses due to wind and wind-blown rain

30. Hurricane Ike cont. • Property and Casualty Losses cont. • Lamar State College (Pt. Arthur) • $650K in estimated losses • Roof and contents damage to Fuller Building, roof and contents damage to student center • Losses due to wind and wind-blown rain • Lamar State College (Orange) • $6.5 million in estimated losses • Storm surge water in 7 of 8 buildings on campus • Campus closed for 3 weeks due to storm • Losses due to storm surge, wind, and wind-blown rain

31. Hurricane Ike cont. • Property and Casualty Losses cont. • Adjutant General • Minor damage to facilities in Beaumont, Pt. Arthur, Pt. Neches, LaMarque, Baytown, Pasadena • Uninsured or Insured Elsewhere Damages • TSU • Texas Historical Commission • Adjutant General • TPWD • TDCJ

32. Lessons Learned from Hurricane Rita • A complete evacuation of a major city (Houston) and region (Southeast Texas) does not work. • Lack of emergency coordination among local, state, and federal relief services. • Lack of mutual aid agreements. • Lack of immunizations for state emergency responders.

33. Lessons Learned from Hurricane Rita cont. • Lack of personal protective equipment for state emergency responders. • Lack of a process to decontaminate state equipment after use. • Lack of emergency power equipment (generators). • Lack of testing of Business Continuity Plans (those that have plans). • Many of the state buildings damaged by Hurricane Rita were not covered by property insurance.

34. Comments and Recommendations as a Result of Both Hurricanes • Presenter and Audience Contributions

35. Risk Management User Group Thank you for attending Happy Holidays!!