Overview
Wildfires. Hurricanes. Tornados. Earthquakes. Covid-19. What do all these events have in common? They are events that occur suddenly, offer little time for families to prepare, and leave devastation in their wake. Although we often think of first responders as firefighters, police, and emergency management officials, other leaders in a community with local knowledge and access to resources are just as critical in the disaster response.
Credit unions, along with small business owners and religious and community organizations, are fundamental to building community resilience because they know the community’s capabilities and needs; they have the trusting relationships; and, they can form strategic partnerships within their networks. Developing a whole community strategy as described by FEMA can help with empowering local action and leveraging community assets and networks quickly after a disaster. The role that Redwood Credit Union played in Northern California following the North Bay fires a few years ago was an extraordinary example of how credit unions can serve as first responders, offer immediate aid, and accelerate the process of long-term disaster recovery.
In 2017 and 2018, Northern California experienced more than 250 wildfires across Sonoma, Napa, Lake and Mendocino Counties. While much of the area is known as Wine Country and is famous for agriculture and luxury tourism, the largest of the fires hit the economically diverse population center of Santa Rosa where the surprise and speed of the fire contributed to its unprecedented economic and social impact.
When the Tubbs Fire broke out in the city late at night on October 8, 2017, Redwood Credit Union was able to spring into action because it had already planned many of its emergency responses well in advance. Redwood Credit Union is the largest credit union in the North Bay and the 8th largest in California with $8.2 billion in assets. In operation since 1950, the credit union has its headquarters in Santa Rosa and serves over 450,000 members across eight counties with 21 branch locations.
Before dawn the next day, the Tubbs fire had decimated multiple neighborhoods in Santa Rosa, including the Journey’s End trailer park, the middle-class Coffey Park community, and luxury developments in the foothills. While thousands of homes, cars, and businesses were completely incinerated, 22 people also lost their lives.
As the fire moved through the city that night, Redwood’s President and CEO, Brett Martinez, saw the fire from his kitchen window and quickly contacted Redwood’s leadership to activate their “phone tree” and contact all 600 employees immediately. The team opened the headquarters building to provide emergency shelter to employees, members, and other residents, since they were one of the only businesses that could run generators and air filters and could serve food from the freezers in its café. The Redwood IT team activated their emergency plan, moving servers and communications equipment from HQ to another branch outside the burn zone, which protected data and kept communications open.
While Redwood employees at HQ were providing shelter, food, childcare, and electricity for Santa Rosans, employees at many branches across the North Bay were doing the same even though many of them were experiencing the same losses and fears as their neighbors. As Martinez shares, “Staff would get calls saying their neighborhoods were being evacuated. They would jump up, leave to take care of their families, and then come right back to dealing with the issues at hand. It was the staff who showed up day after day, who ensure the credit union was able to serve the members effectively.”
In addition to the Tubbs fire, six other major fires burned in the North Bay over three weeks that October, eventually burning 202,734 acres, destroying 8,499 structures, and leading to a total of 40 deaths. That wildfire event was the costliest in the state’s history, exceeding $200 million in fire suppression costs, $1.3 billion in government debris removal costs, and $9.4 billion in insurance claims.
Ultimately, about 150 Redwood employees had to evacuate their homes, many of which were completely burned. Just like other community members, these families left with just the clothes on their backs. The credit union secured hotel rooms for them and set up a phone tree with employees whose homes were safe so they could offer longer-term shelter for those families and pets who could not go home.
Within hours of the outbreak of the Tubbs Fire, Redwood CEO Brett Martinez knew the disaster would have massive repercussions for the region and that the credit union had to do something for the greater North Bay community. He made personal phone calls to State Senator Mike McGuire and Steve Falk, the publisher of the local paper The Press Democrat. They had previously collaborated for a response to the fires in Lake County in 2015 and 2015, so knew they could use McGuire’s government knowledge, Falk’s media power, and Redwood’s financial reputation and network to fashion an effective response.
They immediately formed The North Bay Fire Relief Fund (NBFRF) to provide relief to any community member in need and to assist in post-disaster recovery for the most vulnerable. While the newspaper worked to publicize the Fund and the senator dealt with government agencies and assessed needs, Redwood set up the donation site and an Operations team that handled all the legal, technical, and financial logistics.
Redwood committed to unusual parameters for the fund, which ultimately made it highly successful in raising outside funds and in distributing the funds effectively. The fund did not charge an administrative fee, which allowed every dollar invested in the fund to go directly into supporting community members in need. The NBFRF was set up within the Redwood Credit Union Community Fund, an existing 501c3, so it could immediately collect donations. In less than 4 months, over $32 million was donated to the NBFRF by businesses and philanthropies across the county and by more than 40,000 donors from around the world.
In less than 4 months, over $32 million was donated to the NBFRF by businesses and philanthropies across the county and by more than 40,000 donors from around the world.
Redwood also partnered with established and well-respected community organizations to handle the grant applications and assess needs. These included the United Way, the Center for Volunteer & Nonprofit Leadership in Napa and La Luz in Sonoma. Redwood could assess the impact on its own employees and members who had loans with the credit union, but it did not have the wherewithal to address the needs of the unhoused, children, seniors, immigrants, and other economically marginalized populations that those organizations serve. The NBFRF was designed to be nimble and flexible in the type of aid provided, including money for medical, dental and mental health services for fire survivors, and assistance to agencies that provided free childcare so parents could get back to work.
Management of the fund by trusted organizations instilled confidence in donors that donations would get to the people most in need quickly and efficiently. Over $20 million was distributed directly to about 7,000 people, mostly to families and first responders that had lost homes. About $10 million went to 56 nonprofits that were providing aid and services, and another $1 million to small business that were forced to close. Recognizing the psychological and educational shock that the community’s children suffered, the Fund also provided Visa gifts cards to students so they could get school supplies and clothing and get back to school immediately. Redwood also purchased sports equipment and musical instruments so that schools could help students get back to a feeling of normalcy.
Redwood Credit Union was able to respond to the disaster swiftly because they already had deep knowledge and connections in the community that allowed them to identify the immediate and long-term recovery needs and had emergency plans in place. If you would like to know more about Redwood’s step-by-step response to disaster and how they were able to launch and administer the North Bay Fire Relief Fund, President and CEO Brett Martinez has generously provided his personal report containing information to help your organization plan for disasters. He encourages credit union leaders to get in touch with Redwood if they need additional guidance.
Redwood Credit Union was able to respond to the disaster swiftly because they already had deep knowledge and connections in the community that allowed them to identify the immediate and long-term recovery needs and had emergency plans in place.
Credit Union Takeaways
Redwood Credit Union's response to the North Bay fires offers several key takeaways and best practices for building community resilience after fast-moving disasters. These practices highlight the importance of preparedness, community engagement, and collaboration in effectively responding to and recovering from disasters:
- Have a plan in place to take immediate action: Emergency response plans allow you to act swiftly, with employees aware of how and when they’ll be expected to support your response efforts. Consider what resources you have that can fulfill a need, such as by opening your headquarters to provide emergency shelter, food, and electricity to employees, members, and other residents.
- Engage your community and trusted organizations to build strong response programs: Leverage your deep knowledge of and connections within your community to identify immediate and long-term recovery needs. Collaborate with trusted organizations to help with grant applications, needs assessments, and ensure that aid is distributed efficiently and effectively to those most in need.
- Establish a relief fund: Set up a relief fund to provide relief to community members in need and ensure that every dollar donated goes directly to support those affected. Design your relief initiatives to provide various types of aid, such as money for medical, dental, and mental health services, as well as assistance to agencies offering free childcare. This relief fun can become an ongoing support mechanism for future crises.
- Consider the needs of your employees: Recognize that many of your employees may also be affected by the disaster and provide aid like offering longer-term shelter for employees and their families.