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6-16-2008 (updated 10/10/2008) <br />MEMO <br />TO: Kevin Carruth, City Manager <br />FROM: Gene Anderson, Finance Director <br />SUBJECT: Safety Coordinator <br />THE PROBLEM <br />The City of Paris has had less than a successful history in controlling the frequency and severity of its <br />workers' compensation claims. To illustrate this point, in the past the city has been declared a <br />"hazardous employer" by the Texas Workers Compensation Commission due to the number of workers' <br />compensation claims in certain areas of its operations. (The hazardous employer program was <br />eliminated when the Texas Department of Insurance recently took over TWCC duties.) The departments <br />and time periods that were involved in the hazardous employer program are as follows: <br />1. Street Department <br />2. Sanitation Department <br />3. Sanitation Department <br />4. Fire Department <br />6/15/1998through 3/29/1999 <br />3/07/1999through 4/26/2000 <br />4/22/2002through 5/13/2003 <br />9/13/2002through 5/13/2003 <br />8 months <br />13 months <br />13 months <br />8 months <br />Workers' Compensation history is as follows: <br />1. <br />2001-02 <br />77 claims <br />$280,880 incurred claims <br />2. <br />2002-03 <br />130 claims <br />$403,963 incurred claims <br />3. <br />2003-04 <br />74 claims <br />$172,288 incurred claims <br />4. <br />2004-05 <br />68 claims <br />$ 78,021 incurred claims <br />5. <br />2005-06 <br />77 claims <br />$342,427 incurred claims <br />6. <br />2006-07 <br />34 claims <br />$ 96,352 incurred claims <br />7. <br />2007-08 <br />30 claims <br />$ 19,793 incurred claims <br />8. <br />2008-09 <br />future <br />future <br />$238,505 in premiums <br />$ 362,860 in premiums <br />$ 429,967 in premiums <br />$ 463,491 in premiums <br />$ 395,414 in premiums <br />$ 290,048 in premiums <br />$ 288,528 in premiums <br />$ 239,985 in premiums <br />This situation has been addressed in the past with temporary success by emphasizing the importance of <br />the problem, but long term success has eluded us generally. The reason the city has been unsuccessful, <br />in my opinion, is that safety is nobody's rip mary responsibility. While all employees know that safety is <br />important, that focus is lost in the hustle and bustle of the accomplishing the details of daily <br />assignments. In other words, safety is important, but today's business is urgent. It is too easy to <br />rationalize that safety issues can be addressed tomorrow. It's just that tomorrow rarely comes. A sound <br />risk management program overseen by someone who is accountable for dealing with and following up <br />on safety issues has the potential for long term significant savings by reducing premium costs and <br />avoiding loss time by city workers. Changes in how the city conducts its business must be monitored <br />over time to assure that those changes remain effective. Supervisors have been too easily distracted by <br />the urgent matters of the day to be consistent in following up on safety issues over the long term. <br />THE STUDY <br />In 2006, the city elected to participate in TML's Discovery Team process. Under this program, TML sends <br />a team of their experts to the city for onsite fact finding and evaluation of the city's circumstances. <br />Besides reviewing statistical data, visits were made to most departments and interviews were held with <br />key city personnel. The end result of the study was a list of 9 recommendations to help improve the <br />city's safety record. In abbreviated form, the following items make up the "need to do" list per TML. <br />1. The city should coordinate its loss prevention efforts among its departments by (a) adding HR <br />staff (b) adding a safety coordinator position and (c) establishing a safety committee. <br />2. A single city approved accident prevention plan should be provided for all departments. <br />» 000356";',, - - _ T - T T._. _.T <br />