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N-2012-055 <br />MEMORANDUM <br />Paul Walters <br />To: Interim City Manager Date: March 6, 2012 <br />Executive Director <br />From: Finance & Management Services Agency <br />Subject: Driver's Alert SMART RISK'"" Prooram <br />Program Proposal <br />Finance 8e Management Services Agency proposes to implement a fleet risk reduction program <br />based on at-fault crash prevention and driver safety training. The program called SMART RISK'"" <br />can assist City employees as well as departments by providing intervention tools to correct unsafe <br />driving practices. Driver's Alert, a Florida-based company that has been a pioneer in the safe <br />driver observation and safety training industry since 1989, is the program's service provider. <br />Background <br />For the four-year period from 2006 through 2009, the City's claims tracking system shows that City <br />employees were involved in 117 auto accidents and paid out $1,460,818.20 in bodily injury and <br />property damage claims for an average cost of $12,500 per accident. <br />These statistics however understate the magnitude of the issue because a claims tracking system, <br />by definition, excludes auto accidents for which no claims were filed. For instance, Fleet Services <br />reported 64 auto accidents for 2009 while the claims tracking system reported 29 for the same <br />period. The true cost of City at-fault crashes therefore may be even higher than the claims data <br />indicate. Staff believes these accident-related costs can be minimized by implementing a fleet risk <br />reduction program. <br />Driver's Alert guarantees a minimum 25% reduction in at-fault crashes in 12 months, or the entire <br />program is free for the first year. Using actual 2009 data, the program would reduce the number <br />of accidents by 16 (25% of 64). Based on the average cost of $12,500 per accident, a reduction of <br />16 accidents would save the City a total of $200,000. <br />Program Components <br />• A decal-based monitoring service that empowers anyone to call in high-risk driving <br />behavior so the City can take corrective action quickly. <br />• An unlimited-use online library of 53 interactive driver safety training courses ranging in <br />length from 12 to 60 minutes, in English and in Spanish.