I'm using an invisible activator which is always following a certain actor via "setPos"-calls and regularly casts an AOE Scripted Effect Spell (those "target" spells with an area effect setting) to spam the actor's surrounding and apply said spell script to any actor in range it hits. That's one script moving the invisible activator and one script for the spell effect applied to the actors hit. This way I get a script running on every actor in range to do interesting things.
In the case you described it'd be far easier even, because you only need the script which is updating the caster's position and calls "cast XXX YYY" to make it cast the spell XXX on the governing actor YYY (which always is "in the center of explosion", if you like), say a Quest Script to run every second as you said, and the actual spell XXX (effect fire damage 5 in your example) can be a Vanilla one or a custom and doesn't even need to be scripted at all.
If it helps any, here's the snippet of my code part for this task:
set source to DrakeDragonRaceScanner;move into new cell with player and reset count so spell is cast immediatelyif(source.getInSameCell player != 1) source.moveTo player set timer to 0endifif(timer <= 0) set playerX to player.getPos X source.setPos X playerX set playerY to player.getPos Y source.setPos Y playerY set playerZ to player.getPos Z source.setPos Z playerZ source.cast DrakeDragonRaceScannerAura player set timer to 1else set timer to (timer - getSecondsPassed)endif
The upper part makes sure the invisible activator, my caster, is in the same cell as the player and the lower part updates its position and makes it cast the spell.
There's a little timer, conveniently it's even set to 1 second already, DrakeDragonRaceScannerAura is my custom spell (just ignore it and create your own or use an existing one), and DrakeDragonRaceScanner is the "persistent reference" ID of my invisible activator, neatly put away into a holding cell at game start so it doesn't mess with any existing cells.
The most important parts come in the setup of the actual spell, as you need to make it an area spell with a defined range and such. Unfortunately I have no access to the CS at the moment so I can't take a look which options those were.