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HomeMy WebLinkAbout8 Safety Incentive to District Employees Agenda Ite m 8 TRUCKEE DONNER Public Utility District CONSENT To: Board of Directors From: Kathleen Neus Date: August 011 2012 Subject: Consideration of a Safety Incentive to District Employees 1. WHY THIS MATTER IS BEFORE THE BOARD This new program must be approved by the Board. 2. HISTORY The District's workers' compensation insurance experience modifier (X-Mod) and annual premium amounts have been declining during the past several years. Employees increased safety consciousness which has resulted in no lost-time injuries since 2010. 3. NEW INFORMATION The District's goal is to strengthen staffs compliance with established safety practices to prevent injuries and accidents. The District is proposing a goal and reward for employees for no lost-time injuries for the remainder of the year. With an incentive in place, the goal is for employees to look out for one another to improve work place safety. Should an employee observe unsafe work practice, the work will be stopped, the process corrected, and the task will proceed in a safe manner; a "Watch your Neighbor" approach. The proposal is to provide a $200 safety incentive to each employee, provided there are no lost-time incidents experienced by December 31, 2012. The chart below shows annual savings for the past five years due to our decreasing X- Mod when compared to the base year of 2008. The total savings has been $342,304 over the past four years. YEAR X-MOD ANNUAL PREMIUM NORMALIZED SAVINGS 2008 1.74% $2722125 ---- 2009 1.38% $209,912 $54,759 2010 1.58% $192$574 $19,501 2011 1.05% $187,337 $123,107 2012 0.93% $166,410 $144,937 4. FISCAL IMPACT The cost of the Safety Incentive is $13,000. Sufficient funds exist within the approved FY12 budget. 5. RECOMMENDATION Approve a safety incentive of $200 per each District employee, provided there are no lost-time accidents by December 31, 2012. Michael D. Holley General Manager