Evaluation of FTA Drug Abuse Testing Program October_ 2000 .ppt

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					        Evaluation of FTA Drug Abuse Testing Program
                                      April 2008




                                                                     1
Jerry Powers, FTA Office of Program Management – Safety & Security
          Evaluation Analysis Opportunities


• Use DAMIS data and external cost measures to develop a cost benefit
  model

• Compare DAMIS data to SAMIS data to determine safety benefit from
  the D&A Program

• Raise the bar – provide customer service. Opportunities to use DAMIS
  to help agencies justify D&A expenditure apart from it just being a
  regulatory requirement

• Show where to focus efforts/funding - areas for improvement



                                                                        2
                     CHARTER
   Prove the Effectiveness of the D&A Program in
           Achieving FTA Strategic Goal

• Promoting public safety by eliminating transit-related
  deaths, injuries, and property damage

USE:
• Maturing DAMIS data together with:
  – Safety Data (SAMIS/NTD)
  – Audits/Technical assistance experience and data
  – Other Industry and Government D&A measures
  – Creative analysis

                                                           3
        New Measures of Cost and Safety Benefits
              Money, Lives & Mayhem

Cost Benefit
 • Show cost saving to Transit Industry due to elimination or mitigation
   of D&A using employees

 • Second chance programs have significant cost benefit to industry

 • Audits are having a positive effect in terms of safety benefits and cost
   savings

Safety Benefit
 • Use baseline rate (1995 or 1996) and subsequent improvement to
   prove reduction in accidents, fatalities and injuries

                                                                              4
                            Outline
• Concept and Measures
• FTA and Testing Costs
• Benefits
   – Mitigation of Drug & Alcohol positives
       •   Pre-employment
       •   Random
       •   Reasonable Suspicion
       •   Refusals
       •   Post-Accident
       •   Deterrent Effect
   – Safety
   – Audits
   – Second Chance Programs
                                              5
                    D&A Evaluation Concept

I. COST BENEFIT                               II. SAFETY BENEFIT
Baseline                                      Baseline
                               NTD S&S
                 DAMIS           Data
                  Data

                          Other Industry
                                                                    NTD S&S
                         and Government                DAMIS          Data
                            D&A Cost                    Data
                            Measures


Analysis                                      Analysis
Merge these              NTD S&S               Merge these            NTD S&S
baselines into     DAMIS   Data                 baselines to    DAMIS   Data
 cost benefit                                   show D&A
                    Data                                         Data
 spreadsheet                                  contributing to
  Of D&A                     Other Industry
                            and Government        accident
  Program                      D&A Cost          avoidance
                               Measures
                                                                              6
   Industry and Government D&A Cost Measures

     Source                                                    Drug Use at Workplace

     SAMHSA             • Overall   positive rate trend: 17.5% in ’85; 7.7% in ’97; 8.2% in ‘04
  on positive drug
                        • 10.6% of Transportation/Material Moving workers are current drug or heavy
                        alcohol users
                        • Full-time workers, age 18 to 49 reporting workplace drug testing
                                 – Post accident rate: 22% in ’94; 29% in ’97;
                                 – Random rate:        20% in ’94; 25% in ’97; 30% in ‘04
                                 – At hiring rate:     35% in ’94; 39% in ’97; 44% in ’04
       OSHA             • 47% of allindustrial accidents in US related to drug & alcohol
on safety and health    • Drug users filed five times more worker’s compensation claims
                        • Drug users utilized 300% more medical benefits
                        • Drug users had 2 to 3 times more absenteeism
    Stealth Tec         • 10% employees    are substance abusers
  on rate and cost      • It costs business $10,000 a year for each abuser on payroll
                        • It   costs $7,000 to replace a worker
Canadian research       • 8% positive in trucking industry
                        • 1992 Canada drug use costs 1.37B, or 0.2% of GDP
National Institute on   • Economic      cost of Drug and Alcohol Abuse in the US is $246 Billion per year
Drug Abuse (NIDA)
                        • 45% Gov’t, 43% Abusers household, 7% victims, 3% insurance
     APBnews            •Marijuana and Cocaine are most commonly used drugs                                 7
                                  DAMIS Baseline

                                Overall Random Positive RateTest
                                 Overall Random Drug
                      Trend of Positive Random Positive Rate
                      Percent positive = (No. positive/No. sampled) * 100
        2.50% 2.4
           2.50%


                2.2
           2.00%
        2.00%
                2.0

           1.50%
        1.50% 1.8        1.73%
                      1.73%

               1.6              1.50%
                             1.50%
           1.00%
        1.00%                             1.21%
                                        1.21%
                1.4                               1.07%                               1.05%
                                              1.07%        1.00% 1.05%
                                                          1.00%    0.95%   0.89%              0.96% 0.89%
           0.50%                                                                   0.89%      0.87%
        0.50% 1.2                                                          0.81%                      0.80%
                                                                                                              0.71%
               1.0
           0.00%
        0.00% .8
               1994              1996             1998              2000              2002            2004            2006
            1994 N =         1996517          1998
                                               2021                2000
                                                                  2095         22342002        2343   2004            2006
                                  1995            1996            1997        1998             1999



• Random Positives are on the decline
•CDL positive rate is higher than other employee categories
                                                                                                                             8
                                     NTD S&S Baseline

                       Transit Fatality Rate (per 100,000,000 Passenger Miles)

        1    0.95
                                         0.92
       0.9          0.87
                                  0.84
                           0.80
       0.8                                      0.77
                                                       0.73 0.74 0.73 0.74
                                                                             0.70
       0.7                                                                                 0.66
                                                                                    0.62
                                                                                                         0.59
       0.6                                                                                        0.56          0.56
                                                                                                                       0.52

       0.5


       0.4
         90

               91

                      92

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                                           95

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        19

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                    19

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                                                                                                                20
                                            Fatality Rate          Linear (Fatality Rate)

• Transit Industry is getting safer. Incidents, injuries and fatalities are
trending down
                                                                                                                              9
                                   I. Cost Methodology - Cost Benefit Spreadsheet
Impact of Drug and Alcohol Abuse on Transit                                                    1995                   1996                        2001                  2002                  2003                  2004                  2005
                          1
Gross Domestic Product                                                                   $7,400,500,000,000        $7,813,200,000,000         $10,128,000,000,000   $10,469,600,000,000   $10,960,800,000,000   $11,685,900,000,000   $12,421,900,000,000




                                                                                                                                        ...
Transit as percent of total US Economy                                                                 0.168%                 0.172%                      0.149%                0.150%                0.147%                0.151%                0.140%
Transit Gross Product2                                                                        $12,400,000,000        $13,400,000,000             $15,100,000,000       $15,700,000,000       $16,100,000,000       $17,600,000,000       $17,400,000,000

Percent GDP change                                                                                                             5.58%                       3.17%                 3.37%                 4.69%                 6.62%                 6.30%
Annual Economic Cost of D&A abuse in the US3                                                 $287,732,807,925       $303,778,660,210            $393,778,512,083      $407,059,983,225      $426,157,930,019      $454,349,952,049      $482,965,768,093



Annual Potential Societal Economic Cost of D&A abuse (Transit portion)                           $482,114,292           $520,994,477                $587,090,791          $610,418,902          $625,970,976          $684,291,253          $676,515,216




FTA Drug and Alcohol Testing Program                                                           1995                   1996                        2001                  2002                  2003                  2004                  2005
FTA Total Cost per year - FY2000                                                                   $2,200,000             $2,200,000                  $2,200,000            $2,200,000            $2,200,000            $2,200,000            $2,200,000

Total Tests                                                                                           188,278                275,148                     301,514               304,458               296,172               310,939               309,190

Total Random and Reasonable Suspicion Drug Tests

Cost of Tests - from 1999 Rural

Actual Cost of Tests
                                                                                                       81,378

                                                                                                       $66.56

                                                                                                  $12,531,784
                                                                                                                             109,517

                                                                                                                              $66.56

                                                                                                                         $18,313,851
                                                                                                                                        ...              129,167

                                                                                                                                                          $66.56

                                                                                                                                                     $20,068,772
                                                                                                                                                                               132,744

                                                                                                                                                                                $66.56

                                                                                                                                                                           $20,264,724
                                                                                                                                                                                                     135,820

                                                                                                                                                                                                      $66.56

                                                                                                                                                                                                 $19,713,208
                                                                                                                                                                                                                           141,510

                                                                                                                                                                                                                            $66.56

                                                                                                                                                                                                                       $20,696,100
                                                                                                                                                                                                                                                 140,479

                                                                                                                                                                                                                                                  $66.56

                                                                                                                                                                                                                                             $20,579,686

Safety Sensitive Employee productivity cost per test - from 1999 rural                                   $6.08                 $6.08                        $6.08                 $6.08                 $6.08                 $6.08                $6.08

Total National Productivity Cost to Agencies                                                         $494,371               $665,316                    $784,690              $806,420              $825,107              $859,673              $853,410

Cost of Drug and Alcohol Program Personnel at Transit Agencies                                         $40.97                 $40.97                      $40.97                $40.97                $40.97                $40.97                $40.97

Total National Administrative Cost to Agencies                                                     $7,713,750            $11,272,814                 $12,353,029           $12,473,644           $12,134,167           $12,739,171           $12,667,514

Total Cost                                                                                       $22,939,905            $32,451,980                 $35,406,490           $35,744,789           $34,872,482           $36,494,944           $36,300,611




Pre-employment                                                                                 1995                   1996                        2001                  2002                  2003                  2004                  2005
Pre-employment Drug tests - yields unique safety sensitive applicants                                  26,379                 49,392                      73,362                68,240                65,685                71,689                76,918

Pre-employment Drug and Alcohol tests                                                                  36,013                 56,460                      83,530                82,891                75,356                82,079                87,276

Pre-employment Positive                                                                                      791               1,394                        2,153                 1,992                 1,570                 1,664                1,698




                                                                                                                                        ...
Percent of unique applicants with a Drug or Alcohol Pre-employment Positive                             3.00%                  2.82%                       2.93%                 2.92%                 2.39%                 2.32%                 2.21%
Eliminated from Consideration by D&A Program Positive Pre-employment Test
(Cumulative 1995-1999)                                                                                       791               2,185                      11,201                13,193                14,763                16,427                18,125

Total Transit Safety Sensitive Employees                                                              212,496                213,657                     259,122               261,327               255,061               261,236               260,045

Total Transit Employees*                                                                              275,000                276,494                     328,002               326,659               315,565               316,194               323,108

Percent of Transit Employees that are safety sensitive                                                  77.3%                  77.3%                       79.0%                 80.0%                 80.8%                 82.6%                 80.5%
                                                                                        10
Current % of Illicit Drug and/or Heavy Alcohol Use among Transportation Workers- 1997                  10.80%                 10.80%                      10.80%                10.60%                10.60%                10.60%                10.60%

Current Illicit Drug and/or Heavy Alcohol Using Safety Sensitive Transit Workers (using 10.8%)         22,950                 23,075                      27,985                27,701                27,036                27,691                27,565

Average Annual $ Impact of Each D&A Using Transit Employee                                            $16,233                $17,447                     $16,573               $17,629               $18,714               $20,417               $19,753
Annual Cost Avoided by Transit Industry due to Eliminating Workers from
Consideration as a Result of D&A Program Positive Pre-employment Tests                            $12,840,148            $38,121,949                $185,635,836          $232,579,291          $276,270,251          $335,382,004          $358,015,647




Random                                                                                       Baseline Rate            1996                        2001                  2002                  2003                  2004                  2005
Percent Positive (Drug)                                                                                 1.73%                  1.50%                       0.81%                 0.89%                 0.87%                 0.80%                 0.71%

Positives - Total Eliminated or Mitigated in Workforce (Both)                                            1472                   1721                        1094                  1216                  1207                  1157                  1027

Positives - Eliminated or Mitigated in Workforce (Both Cumulative1995-1999)                              1472                   3193                        9266                 10482                 11689                 12846                 13873

 Positives - (Drug) Eliminated or Mitigated in Workforce                                                 1390                   1620                        1035                  1171                  1170                  1122                   991

Total Alcohol Screening Tests                                                                          47,816                 62,618                      43,667                45,146                42,306                43,452                40,522

 Positives - (Alcohol) Eliminated or Mitigated in Workforce

Percent Positive (Alcohol)
Annual Cost Avoided by Transit Industry due to Eliminating Workers as a Result of
D&A Program Positive Random Tests (Cumulative)
                                                                                                        0.17%

                                                                                                  $23,894,688
                                                                                                              82                 101

                                                                                                                               0.16%

                                                                                                                         $55,708,642
                                                                                                                                        ...                   59

                                                                                                                                                           0.14%

                                                                                                                                                    $153,566,794
                                                                                                                                                                                    45

                                                                                                                                                                                 0.10%

                                                                                                                                                                          $184,787,094
                                                                                                                                                                                                          37

                                                                                                                                                                                                       0.09%

                                                                                                                                                                                                $218,744,359
                                                                                                                                                                                                                                35

                                                                                                                                                                                                                             0.08%

                                                                                                                                                                                                                      $262,270,483
                                                                                                                                                                                                                                                      36

                                                                                                                                                                                                                                                   0.09%

                                                                                                                                                                                                                                            $274,027,646

Deterrant Effect
Employees abstaining from using drugs due to the program (current % pos
subtracted from baseline)                                                                                                        491                        2384                  2195                  2194                  2429                  2652
Annual Cost Avoided by Transit Industry due to Workers abstaining due to D&A
Program Random Tests                                                                                                      $8,573,707                 $39,509,100           $38,698,225           $41,048,946           $49,601,804           $52,392,928
Employees abstaining from using alcohol due to the program (current % pos
subtracted from baseline)                                                                                                          2                           6                    13                    16                    19                    16
Annual Cost Avoided by Transit Industry due to Workers abstaining due to Random
Tests (Alcohol)                                                                                                              $31,035                     $99,917              $223,185              $294,284              $379,077              $322,471




                                                                                                                                                                                                                                                            10
     Cost Methodology – Unit of Measurement
• Each D&A using employee costs the Transit Industry and the
  overall society $15-20K per year:
   – Health Care Expenditures
       • D&A abuse services
       • Medical consequences
   – Productivity Effects
       • Premature Death
       • Impaired productivity
       • Institutionalization, Incarceration, Crime careers and victims
   – Other Effects
       • Crime effects
       • Vehicle crashes and fire

• D&A Program eliminates or mitigates users at $15-20K per
  user per year
                                                                          11
                                                          Costs
• Costs have ranged from $22M-$36M per year since 1995

                                                                         2005
     FTA Total Cost per Year - FY2001                                     $2,200,000
     Total Tests                                                             309,190
     Total Random and Reasonable Suspicion Drug Tests                        140,179
     Cost per Test - from 1999 Rural                                          $66.56
     Actual Cost of Tests                                                $20,579,686
     Safety Sensitive Employee Productivity Cost (per test)                    $6.08
     Total National Productivity Cost to Agencies                           $853,410
     Cost of Drug & Alcohol Program Personnel at Transit Agencies (per
     Test)                                                                     40.97
     Total National Administrative Cost to Agencies                      $12,667,514
     Total Cost                                                          $36,300,611




                                                                                       12
                       Savings Methodology
•   Transit is 0.14% of the US Gross National Product (approximately $17.4
    Billion/year in 2005)
•   Cost of Drug use and Alcohol misuse to the US economy is $483 Billion per
    year – NIDA measure indexed
•   Transit portion of that cost is $677 Million per year. Safety-sensitive are 80%
    of transit employees. Thus incur $542 Million of that cost.
•   10.6% of Transportation Workers with drug use and/or alcohol misuse -
    Substance Abuse and Mental Health Services Administration (SAMHSA)
    Survey
•   Approximately 260,000 safety-sensitive transit employees
•   Thus, ~27,500 incur the $542 Million in annual cost
•   $542,000,000/27,500 employees = $19,700 per year per employee in 2005

•   Deterring or mitigating those 27,500 employees is the basic savings
    opportunity


                                                                                  13
                                               Savings Methodology

Impact of Drug and Alcohol Abuse on Transit
                                                                           2002                  2003                  2004                  2005
Gross Domestic Product (GDP)                                          $10,469,600,000,000   $10,960,800,000,000   $11,685,900,000,000   $12,421,900,000,000
Transit as a Percent of Total U.S. Economy                                        0.150%                0.147%                0.151%                0.140%
Transit Gross Product                                                    $15,700,000,000       $16,100,000,000       $17,600,000,000       $17,400,000,000
Percent GDP change                                                                 3.37%                 4.69%                 6.62%                 6.30%
Annual Economic Cost of U.S. Drug & Alcohol Abuse                       $407,059,983,225      $426,157,930,019      $454,349,952,049      $482,965,768,093
Annual U.S. Total Societal Economic Cost of Drug & Alcohol Abuse
(Transit Portion)                                                           $610,418,902          $625,970,976          $684,291,253          $676,515,216


Annual Economic Impact of Each Drug and Alcohol Using Employee
                                                        2002                                     2003                  2004                  2005
Total Transit Safety-Sensitive Employees                                          261,327               255,061               261,236               260,045
Total Transit Employees                                                           326,659               315,565               316,194               323,108
Percent of Safety-Sensitive Transit Employees                                      80.0%                 80.8%                 82.6%                 80.5%
Percent of Drug Use and/or Alcohol Misuse among Transportation
Workers                                                                           10.60%                10.60%                10.60%                10.60%
Current Drug Using and/or Alcohol Misusing Safety-Sensitive Transit
Workers (Extrapolated using 10.6%)                                                 27,701                27,036                27,691                27,565
Average Annual Economic Impact of Each Drug Using and/or Alcohol
Misusing Transit Employee                                                         $17,629               $18,714               $20,417               $19,753




                                                                                                                                                  14
                                               Cost Methodology
                                            Pre-employment Savings

     • Pre-employment testing - eliminated 18,125 users over the course of the
       Program. These users would have cost the Transit Industry $358
       Million in 2005 (18,125*$19,753 = ~$358,000,000).

Pre-employment
                                                                                2002           2003            2004            2005
Pre-employment Drug Tests - Yields Unique Safety-Sensitive Applicants               68,240         65,685          71,689          76,918
Pre-employment Drug and Alcohol Tests                                               82,891         75,356          82,079          87,276
Unique Applicants with a Drug or Alcohol Pre-employment Positive                      1,992           1,570           1,664           1,698
Pre-employment Positive Rate                                                         2.92%          2.39%           2.32%           2.21%
Eliminated from Employment Consideration by Positive Pre-employment Test
(Cumulative 1995-2005)                                                              13,193         14,763          16,427          18,125
Annual Societal Economic Cost Avoided by Transit Industry due to Eliminating
Users from Employment Consideration as a Result Positive Pre-employment
Tests (Using Cumulative Figure)                                                $232,579,291   $276,270,251    $335,382,004    $358,015,647




                                                                                                                                         15
                                                       Cost Methodology
                                                        Random Savings
    • Random testing - eliminated or mitigated 5701 users over
      the previous 5 years of the program in 2005. These users
      would have cost the Transit Industry $112 Million in 2005
           (5701*$19,753 = ~$112,000,000).

Random
                                                                                2002           2003           2004           2005
Percent of Random Test Positive (Drug)                                               0.89%          0.87%          0.80%          0.71%
Random Test Positives (Drug & Alcohol) - Users Eliminated or Mitigated from
Transit Workforce                                                                      1216           1207           1157           1027
Random Test Positives (Drug & Alcohol) - Users Eliminated or Mitigated from
Workforce (Cumulative 5-year Rolling)                                                  5909           5866           5867           5701
Random Drug Test Positives - Users Eliminated or Mitigated from Workforce              1171           1170           1122           991
Total Alcohol Screens                                                               45,146         42,306         43,452         40,522
Random Alcohol Screen Positives - Eliminated or Mitigated in Workforce                  45             37             35             36
Percent of Random Screen Positive (Alcohol)                                          0.10%          0.09%          0.08%          0.09%
Annual Societal Economic Cost Avoided by Transit Industry due to Eliminating
or Mitigating Users as a Result of Positive Random Tests (Using Cumulative
Figure)                                                                        $104,169,714   $109,774,524   $119,783,662   $112,609,501




                                                                                                                                           16
                 Cost Methodology
 Post-Accident, Reasonable Suspicion, and Refusals


• Post Accident positives - eliminated or mitigated 1041 users
  over previous 5 years in 2005. These users would have cost
  the Transit Industry $21 Million in 2005.

• Reasonable Suspicion - eliminated or mitigated 601 over
  previous 5 years in 2005. These users would have cost the
  Transit Industry $12 Million in 2005.

• Refusals - eliminated 1506 users over previous 5 years in
  2005. These users would have cost the Transit Industry $30
  Million in 2005.
                                                               17
                            Deterrent Effect of Random Testing
                         Year to Year calculation – no cumulative effect
                                                                                              If the positive rate remained
                                                                                              the same as at the beginning
                                                                                              of the program, each year there
                                                                                              would be ~2000 more positives
                                                                                              per year
                       2.00%
Random Positive Rate




                       1.60%
                               1.73%

                                   1.50%
                       1.20%
                                              1.21%
                                                      1.07%
                                                              1.00%
                       0.80%                                          0.95%
                                                                                      0.89%     0.87%
                                                                              0.81%
                                                                                                        0.80%
                                                                                                             0.71%
                       0.40%



                       0.00%
                            1995       1996    1997   1998    1999    2000    2001    2002      2003    2004    2005
                                                                                                                            18
                                                    Deterrence – Random Program
                • Has saved a total of $347 Million 1995-2005
                • From $9M to up to $56M per year
Deterrant Effect
                                                Baseline Rates   1996          1997         1998         1999          2000          2001         2002          2003          2004           2005
Percent of Random Test Positive (Drug)                  1.73%      1.50%          1.21%        1.07%        1.00%         0.95%         0.81%        0.89%         0.87%         0.80%          0.71%

Percent of Random Screen Positive (Alcohol)             0.17%      0.16%          0.14%        0.13%        0.09%         0.10%         0.14%        0.10%         0.09%         0.08%          0.09%
Employees Abstaining from Using Drugs due
to the Program (Current % Positive Subtracted
from Baseline % Positive)                                  N/A          491        1115         1483         1742          1948          2384         2195          2194          2429           2652

Annual Societal Economic Cost Avoided by
Transit Industry due to Workers Abstaining
because of FTA Random Drug Tests                           N/A $8,573,707 $20,343,073 $28,656,441 $34,100,832 $31,808,655 $39,509,100 $38,698,225 $41,048,946 $49,601,804 $52,392,928

Employees Abstaining from Misusing Alcohol
due to the Program (Current % Positive
Subtracted from Baseline % Positive)                       N/A          22            75           91           184           172           94           188           214           238            215

Annual Societal Economic Cost Avoided by
Transit Industry due to Workers Abstaining
because of Random Alcohol Screens                          N/A   $380,048     $1,359,427   $1,755,938   $3,605,913    $2,816,154    $1,562,209   $3,308,427    $4,010,991    $4,850,420     $4,245,373




                                                                                                                                                                                       19
                   Cost Methodology
• Drug and Alcohol Rules Cost Benefit (Regulatory Impact
  Analysis) called for a $1.39 Billion benefit over 10 years.
  An average of $139 million/year.
• Real data from the first 11 years blows this figure away
   – $3.683 Billion (or $335 million per year average)
                                         Redskins      27
                                         Cowboys       14




               It’s Up and….     It’s Good!
                                                                20
             Safety Methodology -
    D&A Accidents are Comparable with Regular
             Accidents in Lethality
• SAMIS shows and .0071 fatalities per Accident (Collision)
  1995 – 1998.

• DAMIS shows .0077 fatalities per D&A Accident.

• Thus, D&A has comparable lethality to Overall Safety
  figures in fatal accidents (8% higher than non-D&A
  accidents).

• Fatalities are a function of accidents – bad luck when they
  occur                                                     21
            Safety Methodology -
Show that D&A Program Saves Lives and Reduces
                   Injuries

• D&A Program Reduces Accidents and thus, exposure to
  Injuries and Fatalities

• No way of measuring the D&A related accident rate before
  the program, so…

• Use 1995 as a baseline




                                                         22
                              Saving Lives: It’s What’s above the Curve
                               Post-Accident Positive Rate (Drug and Alcohol)
                                                Per Incident          Using 1995 as a baseline,
                                                                                                          the dark wedge represents:
                                3.50%
                                                                                                          • 1690 Accidents
                                                                                                          • 13 Fatalities
                                                                                                          • 1486 Injuries
Post Accident Positive Rate




                                3.00%
                                        3.11%

                                2.50%

                                            2.29%
                                2.00%
                                                    2.11%
                                                                    1.72%   1.80%           1.78% 1.72%
                                1.50%                       1.69%                                       1.64%
                                                                                    1.62%
                                                                                                                1.54%

                                1.00%


                                0.50%


                                0.00%
                                     1995    1996    1997    1998    1999   2000    2001    2002   2003   2004     2005




                                                                                                                                23
                    Safety Methodology -
               Less Accidents = Less Mayhem
• DAMIS showed that 3.1% accidents were D&A related in 1995
  (Baseline)

• DAMIS showed that 1.5% accidents were D&A related in 2005
  (Improvement)

• If the rate had remained at 3.1%, 1690 more accidents would have
  resulted from 1996-2005.

• National Transit Database (NTD) Safety & Security module reveals
  that .0071 fatalities result per accident (collisions, vehicle going off
  road, and derailments)

• At an overall DAMIS rate of .0077 fatalities per accident, these 817
  accidents would be expected to cause 13.02 fatalities.
                                                                             24
                   The FTA Drug & Alcohol Testing Program
                                                                                                            The decrease in illicit drug use in the
                                                  Drug Positive Rate
                                                                                                            transit industry has resulted in the positive
                                                                                                            rate dropping from 1.76% to 0.81%
2.00%
                                                                                                            resulting in:
        1.76%
1.80%
                1.60%                                                                                          1.     An avoidance of 1,690 accidents that
1.60%                                                                                                                 would have produced approximately
                                                                                                                      13 fatalities and 1486 injuries.
1.40%                   1.27%
                                1.20%
                                                                                                               2.     The elimination or mitigation through
1.20%                                   1.14%                                                                         rehabilitation of 29,841 illicit drug
                                                1.05%           1.03%                                                 users in the transit industry through
                                                                        0.96%
1.00%                                                   0.89%                   0.89%                                 both testing and deterrence
                                                                                        0.79% 0.79% 0.81%      3.     Productivity benefits and total societal
0.80%                                                                                                                 economic cost avoidance of $3.68
                                                                                                                      billion dollars
0.60%

0.40%

0.20%

0.00%
        1995 1996 1997 1998 1999 2000 2001* 2002* 2003 2004 2005 2006 2007

                                                   Positive Rate
                                                                                                                                                  25
                                  Training Cost for New Employees

       • Transit employee salary – weighted average from 2000
         Bureau of Labor Statistics
                                          BLS CY2000 Average     transit safety sensitive    percent of transit           Average transit Safety
FY2000 Average Salaries**                 salary                 workforce                   workforce                    sensitive salary

Bus Drivers                                            $27,250                      37767                         15.6%                 $4,251.04

Subway and Light Rail Operators                        $41,060                        8836                        3.6%                  $1,498.62

Vehicle Ops./Non-Revenue                               $24,620                     123090                         50.8%                $12,517.77

Track, Switch Repair, facility repair                  $39,400                      20472                         8.5%                  $3,331.75

Bus Mechanic                                           $33,210                      26764                         11.1%                 $3,671.44

Rail Car Repair                                        $32,960                      15393                         6.4%                  $2,095.69

First Line Supervisors                                 $39,410                        8278                        3.4%                  $1,347.56

Transit Police                                         $41,560                        1494                        0.6%                    $256.47

TOTAL                                                                              242094                                              $28,970.32

Cost of training a replacement employee                                                                                                 $9,656.77




                                                                                                                                              26
 Cost Measures - Is Return-to-duty and Follow-up a
               Benefit or a Burden?

• It is estimated that to train new employee, it costs 1/3rd of
  an employee’s annual salary

• $1650 per month – D&A Using employee




                               D&A Abusing
            Training            Employee
           Costs for             Costs
                                                                  27
         New Employees
   Is Second Chance Policy Beneficial to Industry? YES
      Second Chance Programs
      Return to Duty and Follow-up
                                                                          totals
     Return-to-Duty Tests (Both Drugs & Alcohol)                                   25,624

     Follow-up Tests (Both Drugs & Alcohol)                                     175,247

     Positives - Failed Return-to-Duty Tests (Both Drugs & Alcohol)                  475

     Positives - Failed Follow-up Tests (Both Drugs & Alcohol)                      2300

     Percent Positives per Return-to-Duty Employee 1995-2005                       10.06%

     Follow-up tests per RTD employee 1995-2005                                      6.53

     Average Transit Salary - 2000                                           $28,970.32

     Savings through the Avoidance of Training Costs                       $223,254,981
     Societal Economic Cost of Employing a Drug User or Alcohol Misuser
     (2 months or 1/6 of Average Annual Economic Impact of Each Drug &
     Alcohol Using Transit Employee)                                         $7,571,542
     Cost of Additional Testing - Return-to-Duty and Follow-up (assume
     $70/test because of Urban focus)                                       $14,060,970

     Substance Abuse Professional (SAP) Cost (assume $960/ RTD Emp.)        $24,599,040

     Net (Savings minus Costs) - Second Chance Programs                    $177,023,429




•Benefit is almost 5 times more than the cost ($223M saved in
training vs. $46M in costs), or for every dollar spent on Second
Chance, industry got almost $5 dollars back.
                                                                                            28
                 Cost Measures - Audits

• Expect a hump in Random positive rate after audit as
  testing gets better – random becomes more random.
• And systems are generally brought into compliance
• Good examples: Los Angeles, San Jose, Santa Fe
                              OR
• Random rate decreases as agency relaxes after audit
                              OR
• They go up the year of as agency readies for the audit


                                                           29
                              Audits

• Expected result of Audits - Timeline




                      Goes up
                     as result of
                    better testing
       Audit
                 (catch more users)



                                               Lower
                                            as result of
                                        eliminating abusers
                                      and causing abstinence
                                                               30
                            Actual Audit Effect
•   Drop in the right of the chart shows that audits are effective in discouraging and
    eliminating substance abusers




     • Audit cost is ~$25K. One user mitigated over one year saves ~$20K
                                                                                         31
  Trends: Drug Metabolization Time and Positive
        Rates shows Actual Drug Choices

• Program would seem to be pushing users away from THC
  (45 days to leave the system) and towards Cocaine (3 days
  to leave the system)
• Expect that tests catch actual THC users at a rate 15 times
  higher than that of actual Cocaine users
   – Multiplying Cocaine rate by 15 gives equivalent actual
      comparable usage rate
• Data shows that Cocaine use is 10 to 12 times higher than
  THC use


                                                            32
                                                Actual Usage Comparison

               Positive Random Rate - THC and Cocaine                              Positive Random Rate - Comparable Actual Usage Rate

1.00%                                                                     14.00%
0.90%
                                                                          12.00%
0.80%
0.70%                                                                     10.00%
0.60%                                                                      8.00%
0.50%
                                                                           6.00%
0.40%
0.30%                                                                      4.00%
0.20%                                                                      2.00%
0.10%                                                                      0.00%
0.00%
                                                                                       1995        1996       1997        1998        1999
        1995          1996               1997           1998       1999

                                                                                          THC Positive Rate   Cocaine comparable real rate
                     THC Positive Rate     Cocaine Positive Rate


                                                                          If Cocaine was testable out to
                                                                          45 days – the chart would look like
                                                                          This.
                                                                                                                                 33
   Questions & Answers

         Jerry Powers
        will be available for
              questions
immediately following this presentation


        Room 209-210

                                          34

				
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