Continuity of Operations Facility Preparedness

1. Continuity of Operations • Facility Preparedness • Kevin SmithNational Disaster Specialistksmith@secondharvest.org312-641-6849

2. 2005 Hurricanes • Katrina alone was the most devastating and costly natural disaster in United States history • Will be months, maybe years, till full cost is known • Federal Government alone expects exceed $100 billion • Rita exacerbated the impact of Katrina • Caused “re-evacuation” of hundreds of thousands of Katrina Evacuees • Re-flooded a large part of New Orleans • Caused withdrawal and re-deployment of tens of thousands of Katrina response workers and interruption in service delivery to Katrina survivors

3. Consolidated Disaster Relief Statistics for A2H: • Approximately 1.1 million people were displaced • Semi truckloads dispatched to date carrying disaster relief and recovery food and grocery products • 2,459 truckloads. • End to end = 23.2 miles • Pounds of food and grocery being delivered to date • 79 million • Weight of 83 loaded Boeing 747’s • Estimated 62 million meals* delivered to date *avg 1.28 lbs per meal 2005 National Hunger Study • Estimated $118 million food and grocery product to date *valuation @ $1.49 per pound

4. Facts on Agency Infrastructure • 41% of the people receiving food assistance prior to Katrina report: The agency where they received assistance is no longer in operation. • The primary markets reported 86% of their agencies currently being served were temporary disaster-relief programs. • 80% of clients receiving food assistance prior to Katrina reported food availability being the same or better following Katrina.

5. Facts on Clients • Demands for food assistance overall in the Gulf Coast States are 50% above pre-Katrina levels. • 72% of clients seeking food assistance in the impacted states were first time clients, tripling the demands in the impacted states as a result of the hurricanes. • One in nine households representing 6.4 million people in the impacted states received food assistance. • 31% of households requesting food assistance had a child 12 years of age or younger. • Households seeking emergency food assistance had median incomes of $26,000 compared to $42,000 for the total area; • 21% report having an income less below $10,000—more than twice the percentage found throughout the area.

6. Disaster planning is a process, not an end product…

7. Preparation Objectives • Presenter: • At the end of this session you will NOT have the answers! It’s what you do with the questions that leads to a disaster plan. • Participants: • IF you are willing to look beyond what you consider day-to-day operations; and will abandon the “it won’t happen to us” mentality, you will begin a comprehensive disaster planning.

8. SUGGESTIONS FOR DISASTER PREPAREDNESS(In no particular order of importance) • People first. Consider offering to pay staff early. Allow employees time to make disaster preparations to their homes and for their families. • Check your telephone system. (PBX/Digital) • Land Line Phone? • Payphone on site? • Purchase an old rotary phone! (remember when you were a kid and the lights went out but the phone still worked?)

9. SUGGESTIONS FOR DISASTER PREPAREDNESS(In no particular order of importance) • Develop an employee "telephone tree" to rapidly contact employees in an emergency. • Maintain an up-to-date copy of: • Phone numbers, • Computer and Internet logon codes and passwords, • Employee phone numbers • Keep in an accessible location. Store copies at home?

10. SUGGESTIONS FOR DISASTER PREPAREDNESS(In no particular order of importance) • Get on the ‘priority list’ of the power company • Make sure the street or highway department knows that your road needs to get cleared and opened quickly; • Work with law enforcement agencies to understand your business and protect it from possible looting/burglary/theft/etc. • Make backup copies of all critical records: • Insurance policies, • Accounting • Employee data, • Customer lists, • Donors and • inventory.

11. SUGGESTIONS FOR DISASTER PREPAREDNESS(In no particular order of importance) • Keep a backup copy of your computer’s basic operating system, boot files, and critical software. • Have petty cash available. Credit means nothing when power is out! • Before the last person leaves the building…. • Unplug everything that is not essential… • desk lamps, radios, coffee makers, vending machines, fans, WHY? • Unplug any unnecessary modems, cable and phone lines. • Make a list on what you disconnect!

12. SUGGESTIONS FOR DISASTER PREPAREDNESS(In no particular order of importance) • Just as you do for staff • Consider compiling cell phone numbers for your key agencies, volunteers, Emergency Management Office, and on site responders. Update your Board’s contact information too. Again keep copies in a safe off-site area. • Watch for signs of abnormal stress. • Your staff and volunteers will be under a lot of pressure. If you or your management team shows concern over individuals, do not ‘blow it off’.

13. FacilitiesBuilding and Equipment • What would you do if your facility were closed for several days, damaged or even totally destroyed? • What could you absolutely not survive without? • Machinery? Computers? The buildings? • What can be done to assure you never have to live without them?

14. FacilitiesOperations • What if there was a prolonged power outage? • What if key suppliers or shippers were shut down even though you are not

15. Critical Information and Communications • What if your payroll, accounting or inventory records were destroyed? • What if your computer or data base was destroyed? • What if the local phone service were disabled?

16. Insurance • Is the insurance adequate to get you back in operation? • Do you understand what is covered and what is not? • Can you pay creditors and employees during a prolonged shutdown? • How long can we survive if we are shut down?

17. Facility Tips • Develop contingency plans to remain in operation if your building is unusable. • Could you operate out of a secondary location? • Could you quickly transport critical items such as computers, inventory, and equipment? • Make upgrades now that would prevent possible future damage. • Strengthening exterior walls • Add a retaining wall • Shore up a creek bank • Seek local mitigation funding from emergency management. (LMS)

18. Operations Tips • Purchase a backup generator to maintain full operations or critical functions such as refrigeration, lighting, security systems, and computer control in the event of a power failure. Even a small generator to charge cell phone batteries would be helpful!!! • Have back-up vendors and shippers in place in case your primary ones are disabled. Set up relationships in advance and maintain them. Place occasional orders so that they regard you as an active customer when you need them.

19. Insurance Tips • Review your current insurance coverage. Is it enough to get your business back in operation? Will it cover the replacement cost of vital facilities? Make it a regular annual procedure to review and update insurance. Also remember that insurance on mortgaged property probably only covers the lender with nothing left over for you. • Be aware of your contents insurance. Does it cover the replacement cost of critical equipment? • Know what your insurance does not cover. Most general casualty policies do not cover flood damage. Many require additional riders for windstorm, sewer backup, or earth movement. Consider adding coverage for likely perils, especially flood insurance. • Consider business interruption insurance that assists you with operating needs during a period of shutdown. It may help you meet payrolls, pay vendors, and purchase inventory until you are in full operation again. Also be prepared for the extraordinary costs of a disaster such as leasing temporary equipment, restoring lost data, and hiring temporary workers.

20. Questions? • Kevin SmithNational Disaster Specialistksmith@secondharvest.org312-641-6849