agenda 1-415-655-0003€¦ · jesse kinney, valley transit . joe macdonald, skagit transit ....

AGENDA Executive Committee

February 28, 2019 WSTIP Offices ~ Olympia

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Phone # 1-415-655-0003

Access Code809 733 743

Password Abc123

9:00 am CALL TO ORDER – President Staci Jordan 1. Roll Call of Members and Introduction of Guests2. Changes in Agenda/Motion to Accept Agenda

Sign-in sheet

CONSENT AGENDA 1. Minutes – December 6, 20182. November 2018 Administrative Vouchers/Checks – Total voucher approval of

$315,127.90 including staff payroll and internet/credit card payments.3. November 2018 Claims Vouchers/Checks – Total voucher approval of $421,261.67.4. December 2018 Administrative Vouchers/Checks – Total voucher approval of

$353,411.92 including staff payroll and internet/credit card payments.5. December 2018 Claims Vouchers/Checks – Total voucher approval of

$1,227,613.42.6. January 2019 Administrative Vouchers/Checks – Total voucher approval of

$1,749,863.82 including staff payroll and internet/credit card payments.7. January 2019 Claims Vouchers/Checks – Total voucher approval of $637,650.26.

Page # 002 007

015

019 027

031

038 DISCUSSION ITEMS

1. Executive Committee Retreat Wrap-Up – Jordan2. Small Member Representative Vacancy – Hughes3. RMIS Data Governance Committee – Powell4. Ratios / Ratio Subcommittee Recommendation – Powell & Shinners5. Coverage Appeal Process – Hughes6. Driver Record Monitoring Program – Christianson & Powell

042 075 076 080 088 095

ACTION ITEMS 1. Adopt 2019/2020 Meeting Schedule – Christianson2. Committee Charters – ER&O and Underwriting3. Clean-Up for Loss Year 2015 -- Christianson

109 111 115

EXECUTIVE SESSION Pursuant to RCW 42.30.110 (1) (i) to discuss with legal counsel representing the agency litigation in which a member acting in an official capacity is a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. The Executive Session is expected to conclude after 60 minutes, unless extended by the Presiding Officer. STAFF REPORT

1. Executive Staff Report – Christianson, Adams, Powell 118 SUBCOMMITTEE REPORTS

1. Governance Policy Committee – No report2. Board Development Committee – No report3. Emerging Risks & Opportunities Committee – Verbal report4. Underwriting Committee – Verbal report5. Coverage Review Committee – Verbal Report

1:00 pm RECAP and ADJOURN – President Staci Jordan Upcoming Committee Meetings Board Development Committee Meeting – 02/28 after EC MTG Governance Policy Committee Meeting – 02/28 after EC MTG Emerging Risks and Opportunities Committee Meeting – 04/24 @ WSTIP Underwriting Committee Meeting – 2/28 (8-9) @ WSTIP Coverage Review Committee Meeting – TBD @ WSTIP Audit Committee – 04/25 before EC MTG

https://wstip.webex.com/wstip/j.php?MTID=mead948857c4ea9bcb089d5a25ed622c1

Minutes of the Executive Committee Meeting

December 6, 2018 Great Wolf Lodge ~ Grand Mound, WA

Executive Committee Members Present Staff Present Paul Shinners, President, Kitsap Transit Staci Jordan, Vice-President, Island Transit Shonda Shipman, Secretary, Whatcom Transportation Authority Suzanne Coit, Large Member Rep/Treasurer, Intercity Transit Nick Covey, Medium Member Rep, Link Transit Amy Asher, Small Member Rep, RiverCities Transit Danette Brannin, At-Large Member Rep, Mason Transit

Cedric Adams, Claims Manager Brenda Barnett, Receptionist Anna Broadhead, Board Relations Tracey Christianson, Executive Director Chris DeVoll, Transit Risk Specialist Marisa Espinoza, Finance Specialist Rick Hughes, General Counsel Laura Juell, Risk and Training Specialist Joanne Kerrigan, Member Services Manager Joel Lambert, Claims Associate Andrea Powell, Administrative Services Manager Karey Thornton, Claims and Technology Assistant

Guests Present Andrew Halsall, Governmental Entities Mutual, Inc. Brian White, Alliant Board Members Present Geri Beardsley, Community Transit Matthew Branson, Ben Franklin Transit Lynn Bourton, Link Transit Amy Cleveland, Pierce Transit Sara Crouch, Jefferson Transit Rich Evans, Pacific Transit Jenny George, Asotin County PTBA Brandy Heston, Grant Transit Tom Hingson, Everett Transit Jesse Kinney, Valley Transit Joe Macdonald, Skagit Transit Dunyele Mason, Clallam Transit

Ed McCaw, Valley Transit LeeAnn McNulty; Mason Transit Ken Mehin, Grays Harbor Transit Steve Mertens, Columbia County Public Transportation Dale O’Brien, Skagit Transit Agustin Ortega, Yakima Transit Aaron Rollins, Twin Transit Wayne Thompson, Pullman Transit Lynda Warren, Spokane Transit Derrick Wojcik-Damers, Twin Transit

Call to Order President Shinners called the meeting to order at 9:03 am. Shinners welcomed all participants as a sign in sheet was passed around the room, Halsall was introduced. Christianson introduced the staff in attendance. He welcomed Cleveland and Branson as they are new Board members. He called for changes to the agenda, hearing no changes, he asked for a motion to approve the agenda. Brannin moved to approve the agenda. Jordan seconded the motion and the motion passed. Consent Agenda Minutes – October 25, 2018; October 2018 Administrative Vouchers/Checks; and October 2018 Claims Vouchers/Checks Shinners asked if there were any items to remove from the consent agenda, hearing none, he asked for a motion to approve. Covey moved to approve the consent agenda. Shipman seconded the motion and the motion passed.

Beardsley arrived at 9:08 am. Discussion Items 2018 Executive Committee Work Plan, Strategic Plan Shinners said as in customary fashion the work plan is included, it looks like staff worked through a lot of material and work items seem to be on target. Christianson said there are a couple things we want the Executive Committee to review as far as goals for the Strategic Plan which will be Executive Committee Retreat topics. Executive Committee Retreat Jordan said the retreat is scheduled for January 16 - 18, 2019 at the Cedarbrook Lodge at SeaTac, the facilitators name is Marilynne Beard and her resume is included in the packet. If you have suggestions for topics, please let Jordan or Christianson know. Draft Public Officials Liability Coverage Document Matrix Shinners explained the matrix is included for informational purposes. He added he hoped everyone reviews it and shares with your general counsel. He encouraged everyone to be involved in the discussions because everyone needs to understand this coverage document. Christianson said the overview memo covers items we are continuing to work on. Beardsley thanked the committee for getting the policy as far along as they have. Shinners said we still have a few tricky exclusions remaining and invited everyone to attend and be involved in the next Coverage Review Committee meeting (date to be determined in January). Christianson clarified that the Public Officials Liability Coverage Document in the Board packet and up for adoption at the Board meeting was the current (old) version with only date changes. Notice Letter from Department of Licensing Christianson said in the packet is a letter we received from Department of Licensing regarding Driver Record Monitoring. To continue our program as is, WSTIP will need a legislative fix. WSTIP hired Michael Shaw, contract lobbyist (for WSTA) to work this issue. Shaw met with the Department of Licensing lobbyist and although they do not like our language, they said they are not opposed to our changes. Shaw will now start looking for a bill sponsor. The problem is if we do not get the legislative changes, our program could substantially change or stop completely. Do we want to do some contingency planning at a governance level about what to do if it doesn’t work out? This is a potential topic for the Executive Committee Retreat. Governance Policy: Purchasing Policy Christianson said the governance policy committee tasked staff with writing a new purchasing policy, which is why there is no red-line version. This policy repeals the purchasing policy and the contractors and suppliers policy. Shipman moved to adopt the Purchasing Policy. Jordan seconded the motion and the motion passed. Governance Policy: Property Inventory and Surplus Policy Christianson said this policy was also written from scratch. It repeals previous property management and surplus policies. Brannin moved to adopt the Property Inventory and Surplus Policy. Asher seconded the motion and the motion passed.

Governance Policy: Records Management Policy Powell said our previous policy only addressed retention and this policy now includes public records. Jordan moved to adopt the Records Management Policy. Shipman seconded the motion and the motion passed. Annual Report of Paid Losses Over $100,000 Kerrigan reminded everyone this is an annual report out, it reviews 10 years of events/claims, as a reminder you can’t have a claim without an event. Click here to view the presentation. Of the 34,747 events that have occurred in the last 10 years, 111 events (each of which are over $100,000) make up 64% of the losses, two of them are catastrophic losses. Rear-enders are a high area of concern, as are pedestrian, motorcycle and bicycle strikes. Ramp events seem to be on the rise. Kerrigan encouraged everyone to send their trainers to the trainer academy. She fielded questions from Board members as to whether data could be sorted by urban and rural, and if it could be sorted by type of bus (low floor or not). She reminded everyone to be sure the information they are putting into Origami is complete, in order to get a better picture of what is driving the losses. Powell said data clean-up has been completed for 2016 and most of 2017, she now sends a monthly report to each Members’ claims person to fill in missing data fields in 2018. Shinners asked if the trainers academy is ready. Kerrigan said the outline has been formalized and is with the consultant, the academy is scheduled for June 2 - 4, 2019. Presentation Governmental Entities Mutual, Inc. (GEM) Update Christianson introduced Andrew Halsall the Executive Director of Governmental Entities Mutual, Inc. GEM is our layer of liability coverage from $2.5 million to $5 million. GEM’s annual report was handed out earlier today and was included electronically in the September Board packet. Halsall thanked everyone for inviting him to attend and explained that it helps him be more helpful to WSTIP when he understands our priorities. He thanked Shinners for sending topics prior to the meeting. Halsall went through his slides (click here). He said GEM is a pool of pools domiciled in Washington, DC, there are currently 16 members, three of those members are from Washington State, GEM’s members own GEM and GEM provides reinsurance for their members. GEM can provide limits up to 10 million, he went through various quota share options and attachment point options, their financial strength, loss exposures and experience. Attendees had a discussion as to the optimal self-insured retention level and surplus levels. McCaw pointed out you cannot reserve enough, when times are tough you will be thankful for the cushion, rather than sliding backwards or towards our goal, we are treading water. Shinners thanked McCaw and prior Board members who advocated building the Pool’s reserves/surplus and thanked Halsall for the presentation. Halsall thanked everyone for their hospitality. The committee recessed at 10:50 am until 11:07 am. Shinners added a discussion item before the Executive Session regarding Everett Transit and the US Department of Labor. Action Items AGRiP Advisory Standards Kerrigan reminded the Executive Committee the Pool applies for AGRiP Advisory Standards every three years and the application was included in the packet. The application is an assessment to see if our policies and practices meet AGRiP standards, this application is peer reviewed. Our governance policies state that the Secretary is responsible for reviewing the application. Shipman said she did review the application and staff did an amazing job, thanking Kerrigan. Shinners said it is a great task for the Secretary to do as it prepares them and give them a better appreciation of the overall Pool’s work and the staff. Kerrigan noted the application process changed in 2018 and will be changing again in 2019. Kerrigan asked for questions. Hearing no questions Shinners asked for a motion to approve the AGRiP

https://www.wstip.org/resource/resmgr/files/mimi_links/2018-12_charting_links/100K_Loss_Events_EC_Present.pptx

https://www.wstip.org/resource/resmgr/files/mimi_links/2018-12_charting_links/GEM_presentation_to_WSTIP_D.pptx

Advisory Standards Application. Brannin moved to approve the AGRiP Advisory Standards Application as presented. Jordan seconded the motion and the motion passed. Discussion Items Everett Transit US Department of Labor (US DOL) Shinners said the US Department of Labor is bringing action against Everett Transit which could possibly affect all members. Hingson said an hourly employee filed a complaint with the US DOL. The complaint was “I don’t have enough time to (fill in the blank) and am not being paid for (fill in the blank).” The US DOL investigator came and interviewed employees (operators, administrative staff, customer service, and security). The investigator felt employees needed more time for pre-trip inspections (we allowed for 10 minutes, US DOL is suggesting 17 minutes). He is waiting for a letter to arrive which will likely say there was supervisory negligence. He shared lessons learned and actions they are taking. In the interest of time, Shinners suspended this discussion and said he would add it to the agenda of the Board meeting. Executive Session The Executive Committee went into Executive Session at 11:30 am for 10 minutes pursuant to RCW 42.30.110 (1) (i) to discuss with legal counsel representing the agency litigation in which a member acting in an official capacity is a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. President Shinners extended the session for an additional 27 minutes. Executive Session ended at 12:07 pm. No action was taken. Sub-Committee Reports Governance Policy Committee No report (policies approved during discussion). Board Development Committee The Board Development Committee met and has planned the Work Session for March, strategic plan goals were all met (out of state Board Development goal, attendance goal, and Behind the Curtain completion), and reviewed the September Board meeting feedback survey results. Committee members are the member representatives. Emerging Risks and Opportunities Committee Report Jordan reported the committee had met on November 7th they began working on a 2019 work plan, technology grant is part of the 2019 WSTIP Budget, drug and alcohol compliance training, fitness for duty/pre-employment fitness and where do those topics live, also discussed vanpool technologies, the Pierce projects, and a Passenger Assistance Sensitivity and Safety (PASS) Certification class that goes beyond just PASS and is relevant to transit safety. This committee is looking for members. Current committee members are Jordan, Asher, Covey, Mehin, and Quintana. Data Governance Committee No report. Coverage Review Committee Shinners said the committee will try to reconvene in January and will send an invitation to attend to Board members or counsel who would like to attend. Shinners, Brannin, and Covey are the committee members.

Audit and Finance Committee Next meeting scheduled for 9:00 am on February 28, 2019, at the WSTIP office. All Executive Committee members are on this committee. Nominations and Elections Committee Shinners said elections are tomorrow, secretary is a four-year commitment. Recap and Adjournment Shinners said he would not recap the meeting, he will try to make time on the Board meeting agenda to continue the US DOL discussion. Shinners noted the Member Representative Meetings will begin at 1:00 pm and the Work Session would begin at 2:00 pm. Shinners adjourned the meeting at 12:13 pm. Submitted this 28th day of February 2019. Approved: ________________________________ Danette Brannin, Secretary

November 2018 Administration Voucher Approval November 1st to November 30th 2018 vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing which has been e-mailed to the Executive Committee members on February 21, 2019. ACTION: I, __________________________, as of this date, ________________________, 2019 Move that the following checks be approved for payment: Vouchers: Check Numbers 28067 through 28131 in the amount of $168,966.47. Internet transfers of $46,238.32 for the 11/15/2018 payroll; $44,221.49 for the 11/30/2018 payroll; and $12,226.81 for the 11/2018 staff benefits. Internet and ACH payments for staff credit cards, travel/expense reimbursements and professional/misc. services total $43,474.81. Total voucher approval requested, including November 2018 staff payroll and Internet and ACH payments is $315,127.90. The motion was seconded by _________________________________and approved by a unanimous vote. I, the undersigned, PRESIDENT/VICE PRESIDENT OF THE WASHINGTON STATE TRANSIT INSURANCE POOL (WSTIP) of the state of Washington, do hereby certify that the merchandise or services, herein specified have been received and the following checks are approved for payment. ___________________________________ PRESIDENT/VICE-PRESIDENT ___________________________________ DATE

Washington State Transit Insurance PoolNovember 2018 Administration Vouchers

US Bank Administration Account

Date Num Payee Description Account Amount

11/01/2018 28067 Department of Enterprise Services Local Gov't Self Insurance Program US Bank Admin 5,860.20

11/01/2018 28068 PRICEWATERHOUSE COOPERS Target Equity Study US Bank Admin 45,000.00

11/01/2018 28069 Sara M. Crouch Travel Reimbursment US Bank Admin 211.46

11/05/2018 28070 Alliant Insurance - Newport Beach Notary Bond US Bank Admin 50.00

11/05/2018 28071 Cisco WebEx, LLC 2019 WebEx Renewal US Bank Admin 4,106.28

11/05/2018 28072 City of Olympia - Utilities Utilities: Current Billing 10/19/2018 US Bank Admin 653.74

11/05/2018 28073 Emmett--Heath Travel Reimbursement US Bank Admin 93.17

11/05/2018 28074 Island Transit Travel Reimbursement - S. Jordan US Bank Admin 172.42

11/05/2018 28075 KitsapTransit Guest Rider - Pullman Transit US Bank Admin 1,289.80

11/05/2018 28076 Lucas Hill Above & Beyond Award US Bank Admin 250.00

11/05/2018 28077 Mason Transit Authority 2018 Network Security Grant US Bank Admin 2,000.00

11/05/2018 28078 Office Depot Office Supplies US Bank Admin 359.25

11/05/2018 28079 Professional Temp Staffing Agency Temp Services - Perry US Bank Admin 1,035.79

11/05/2018 28080 The Institutes Onsite Registration - L. Juell US Bank Admin 132.00

11/05/2018 28081 Valley Transit - WA 2018 Risk Management Grant US Bank Admin 2,500.00

11/05/2018 28082 Washington State Transit Association Ops/Legal Affairs Registrations US Bank Admin 210.00

11/08/2018 ACH Cedric Adams Travel/Expense Reimbursement US Bank Admin 428.61

11/08/2018 ACH Christian DeVoll Travel/Expense Reimbursement US Bank Admin 1,957.33

11/09/2018 28083 Christie Law Group, PLLC Kitsap Transit US Bank Admin 1,266.00

11/09/2018 28084 Copiers Northwest, Inc. Copier Lease & Images US Bank Admin 360.93

11/09/2018 28085 Crystal Springs (TX) Bottled Water US Bank Admin 68.78

11/09/2018 28086 Enterprise Rent A Car - Los Angeles Rental Car Exp - J. Kerrigan US Bank Admin 142.51

11/09/2018 28087 FedEx FedEx Services US Bank Admin 8.97

11/09/2018 28088 Law Office of Richard L. Hughes PLLC General Counsel Services - 10/2018 US Bank Admin 9,633.75

11/09/2018 28089 Lemay - Pacific Disposal Waste/Recycling Services - October US Bank Admin 100.35

11/09/2018 28090 Nicoll Black & Feig PLLC Community Transit US Bank Admin 1,102.50


11/09/2018 28092 Professional Temp Staffing Agency Temp Services - Perry US Bank Admin 167.40

11/09/2018 28093 Puget Sound Energy Electric Utilities US Bank Admin 557.68

11/09/2018 28094 Talents Squared Construction Inc. Irrigation System Inspection US Bank Admin 125.24

11/13/2018 ACH Joanne Kerrigan Travel Reimbursement US Bank Admin 566.29

11/15/2018 28095 University of Washington (Grant Acct'g) Pierce Transit FTA Grant (CAWS) US Bank Admin 23,645.71

11/15/2018 28096 American Driving Records Driver Abstracts - Reports US Bank Admin 77.50

11/15/2018 28097 Capital City Landscape & Maintenance Landscape Maintenance US Bank Admin 294.03

11/15/2018 28098 City of Pullman - Pullman Transit Guest Rider - Kitsap/Pierce Transits US Bank Admin 1,742.58

11/15/2018 28099 Clallam Transit System Guest Rider - Grant Transit US Bank Admin 299.71

11/15/2018 28100 Comcast Comcast Business Services US Bank Admin 354.55

11/15/2018 28101 COMMUNITY Transit 2018 Risk Management Grant US Bank Admin 2,500.00


11/15/2018 28103 Enterprise Rent A Car - Los Angeles Rental Car Exps - J. Kerrigan US Bank Admin 206.07

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11/15/2018 28104 Finser Monthly Processing - WSTIP Portfolio US Bank Admin 100.00

11/15/2018 28105 Jefferson Transit Authority Network Security Grant & Risk Mgmt Grant US Bank Admin 3,087.50

11/15/2018 28106 KitsapTransit Guest Rider - C-TRAN US Bank Admin 752.12


11/15/2018 28108 StraderHallett PS Accounting Services US Bank Admin 1,360.00

11/15/2018 28109 Verizon Wireless Staff Wireless Services US Bank Admin 321.77

11/15/2018 28110 Washington State Transit Association HR Cmte Reg - J. Kerrigan US Bank Admin 60.00

11/16/2018 ACH Janet M. Gates Pierce Transit FTA Grant (CAWS) US Bank Admin 1,785.00

11/16/2018 ACH Jerome M. Lutin, PhD, PE, AICP, F.ITE Pierce Transit FTA Grant (CAWS) US Bank Admin 8,400.00

11/19/2018 ACH Veritas Forensic Accounting & Economics Pierce Transit FTA Grant (CAWS) US Bank Admin 1,135.35

11/20/2018 ACH Brenda Barnett Travel Reimbursement US Bank Admin 116.63

11/20/2018 28111 3 Point Brand Management Corporate Wear US Bank Admin 151.37

11/20/2018 28112 ATU Local 883 2018 Risk Management Grant US Bank Admin 2,500.00

11/20/2018 28113 Jeffrey Davidson 2018 Jeffrey S. Ristau Scholarship US Bank Admin 1,000.00

11/20/2018 28114 Karey Thornton Travel Reimbursement US Bank Admin 1,267.77

11/20/2018 28115 Mason Transit Authority 2018 Risk Management Grant US Bank Admin 2,500.00

11/20/2018 28116 Nicoll Black & Feig PLLC Spokane & Community Transits US Bank Admin 12,483.00

11/20/2018 28117 Peabody Communications Training - Writing Docs/Plain Talk US Bank Admin 1,900.00


11/20/2018 28119 Spokane Transit Authority 2018 Risk Management Grant US Bank Admin 2,500.00

11/20/2018 28120 Steve--Mertens Travel Reimbursment US Bank Admin 296.05

11/20/2018 28121 Summit Law Group Training - Supervisors School US Bank Admin 4,200.00

11/20/2018 28122 Washington State Transit Association BOD Registration - T. Christianson US Bank Admin 190.00

11/23/2018 ACH Data Driven Safety, Inc. Driver Record Monitoring US Bank Admin 24,443.70

11/26/2018 ACH Jerome M. Lutin, PhD, PE, AICP, F.ITE Travel Reimbursement - Pierce Transit Site Visit US Bank Admin 1,345.88

11/28/2018 ACH Jerome M. Lutin, PhD, PE, AICP, F.ITE Travel Reimbursement - Pierce Transit Site Visit Balance US Bank Admin 31.03

11/29/2018 28123 Alex Mehn 2018 Jeffrey S. Ristau Scholarship US Bank Admin 1,000.00

11/29/2018 28124 Clean-Rite Janitorial Services Inc. Janitorial Services - November US Bank Admin 600.00

11/29/2018 28125 Dept of Licensing Driver Record Monitoring US Bank Admin 2,760.46

11/29/2018 28126 Enterprise Rent A Car - Los Angeles Rental Car Exps - J. Lutin US Bank Admin 215.17

11/29/2018 28127 Icenhour Consulting IT Consulting Services US Bank Admin 9,900.00

11/29/2018 28128 Island Transit 2018 Network Security Grant US Bank Admin 2,000.00

11/29/2018 28129 SHI International Corp Azure Subscription US Bank Admin 8,661.60

11/29/2018 28130 Summit Law Group Whatcom Transit US Bank Admin 213.50

11/29/2018 28131 WhatcomTransportation Auth Driver Recognition Program US Bank Admin 500.00


11/29/2018 Internet US Bank Visa (Purchasing Cards) Credit Card Exps US Bank Admin 2,829.61

11/30/2018 ACH Cedric Adams Travel Reimbursement US Bank Admin 235.65

212,441.28

11/05/2018 5881 Health Care Authority Staff Benefits - Inv Month: 11/2018 US Bank Payroll 12,226.81

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11/15/2018 Wire Trans WSTIP Payroll Account 11/15/2018 Payroll & Taxes US Bank Payroll 46,238.32


Total 315,127.90

Page 3 of 3

November 2018 Claims Voucher Approval November 1st to November 30th 2018 vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing which has been e-mailed to the Executive Committee members on February 21, 2019. ACTION: I, __________________________, as of this date, ________________________, 2019 Move that the following checks be approved for payment: Vouchers: Check Numbers 11676 through 11795 in the amount of $421,261.67. Total voucher approval requested is $421,261.67. The motion was seconded by _________________________________and approved by a unanimous vote. I, the undersigned, PRESIDENT/VICE PRESIDENT OF THE WASHINGTON STATE TRANSIT INSURANCE POOL (WSTIP) of the state of Washington, do hereby certify that the merchandise or services, herein specified have been received and the following checks are approved for payment. ___________________________________ PRESIDENT/VICE-PRESIDENT ___________________________________ DATE

Washington State Transit Insurance PoolNovember 2018 Claims Vouchers

US Bank Claims Account

Issue Date Check Number Status Pay To The Order Of Bank Account Amount11/1/2018 11676 Cleared Rodriguez-Sharma, Karla US Bank Claims 937.0911/1/2018 11677 Cleared State Farm Mutual Automobile Ins Co US Bank Claims 2,294.2211/1/2018 11678 Cleared Classic Claims Service, Inc. US Bank Claims 709.0011/1/2018 11679 Cleared Paine Hamblen LLP US Bank Claims 3,315.5011/1/2018 11680 Cleared Summit Law Group US Bank Claims 19,001.9811/1/2018 11681 Issued Vanderpol, David US Bank Claims 23.2211/1/2018 11682 Cleared Alliant Insurance Services, Inc. US Bank Claims 4,390.2711/1/2018 11683 Cleared Link Transit US Bank Claims 8,701.6611/1/2018 11684 Cleared Grays Harbor Transit US Bank Claims 2,609.4911/1/2018 11685 Cleared Island Transit US Bank Claims 6,230.0011/1/2018 11686 Cleared Whatcom Transportation Authority US Bank Claims 16,770.0811/1/2018 11687 Cleared Witherspoon Brajcich McPhee, PLLC US Bank Claims 3,074.8611/1/2018 11688 Cleared Zaremba Claims Service-Yakima US Bank Claims 8,029.4611/9/2018 11689 Cleared AC Branch Holdings, LLC (dba AmeriClaim) US Bank Claims 3,633.4011/9/2018 11690 Issued Ben Franklin Transit US Bank Claims 1,632.4711/9/2018 11691 Cleared C-Tran US Bank Claims 5,312.8911/9/2018 11692 Cleared Community Transit US Bank Claims 953.3711/9/2018 11693 Cleared Enterprise Rent A Car US Bank Claims 3,621.6911/9/2018 11694 Cleared Anderson, Nicole US Bank Claims 5,672.6411/9/2018 11695 Cleared Biscaino, Elsa US Bank Claims 5,314.2911/9/2018 11696 Cleared Broom, Robert US Bank Claims 10,473.4811/9/2018 11697 Cleared Carlson, McMahon & Sealby, PLLC US Bank Claims 7,986.2411/9/2018 11698 Cleared A-1 Roofing, Inc. US Bank Claims 265.1911/9/2018 11699 Cleared Carstar Collision Clinic Bellvue LLC US Bank Claims 1,196.1811/9/2018 11700 Cleared DKK ENT., INC US Bank Claims 2,021.5011/9/2018 11701 Cleared First National Insurance Co of America US Bank Claims 536.4011/9/2018 11702 Cleared Erker's Truck Repair US Bank Claims 1,650.6311/9/2018 11703 Issued Franck, Rosemary US Bank Claims 132.7511/9/2018 11704 Cleared Inland Body & Paint Inc US Bank Claims 2,022.3111/9/2018 11705 Cleared IntercityTransit US Bank Claims 23,939.8911/9/2018 11706 Cleared IOD Incorporated US Bank Claims 4.7011/9/2018 11707 Cleared Island Transit US Bank Claims 5,543.0011/9/2018 11708 Cleared Kassa Insurance Services, Inc. US Bank Claims 388.5011/9/2018 11709 Cleared Law, Lyman, Daniel, Kamerrer & Bogdanovich, PS US Bank Claims 975.9711/9/2018 11710 Cleared Link Transit US Bank Claims 3,073.5011/9/2018 11711 Cleared Mageo, Evan US Bank Claims 81.5311/9/2018 11712 Cleared Maynard, Win US Bank Claims 697.5211/9/2018 11713 Cleared Nesby, Renae US Bank Claims 500.0011/9/2018 11714 Cleared Sosa, Maria US Bank Claims 2,411.9711/9/2018 11715 Cleared Medical Evaluation Specialists, Inc. US Bank Claims 1,307.5011/9/2018 11716 Cleared Spyglass Hill Apartments US Bank Claims 1,599.03

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Issue Date Check Number Status Pay To The Order Of Bank Account Amount11/9/2018 11717 Cleared State Farm Mutual Automobile Ins Co US Bank Claims 1,599.1511/9/2018 11718 Cleared Taj Collision Center US Bank Claims 2,765.8111/9/2018 11719 Cleared The Everett Clinic US Bank Claims 448.0011/9/2018 11720 Issued White, Peggy US Bank Claims 196.2011/9/2018 11721 Issued Zaremba Claims Service-Yakima US Bank Claims 1,864.0011/9/2018 11722 Cleared Spokane Transit Authority US Bank Claims 1,182.8611/16/2018 11723 Cleared Ben Franklin Transit US Bank Claims 1,299.3111/16/2018 11724 Cleared Matrix Absence Management, Inc US Bank Claims 5,516.5011/16/2018 11725 Cleared CCC Information Services, Inc. US Bank Claims 107.8211/16/2018 11726 Cleared Eagle West Insurance Company US Bank Claims 2,110.0811/16/2018 11727 Cleared Integrated Rehabilitation Group US Bank Claims 54.8011/16/2018 11728 Cleared Opportunity Body Shop, Inc. US Bank Claims 3,601.5011/16/2018 11729 Issued Malarchick Law Office US Bank Claims 8,357.0011/16/2018 11730 Cleared State Farm Mutual Automobile Ins Co US Bank Claims 610.0011/16/2018 11731 Cleared The Everett Clinic US Bank Claims 4.6811/16/2018 11732 Cleared Whitney's Collision Center US Bank Claims 949.1411/16/2018 11733 Cleared QualityType, LLC US Bank Claims 28.2411/16/2018 11734 Issued Pierce Transit US Bank Claims 38,488.4411/19/2018 11735 Issued Foster, Cindy US Bank Claims 764.2111/21/2018 11736 Cleared AC Branch Holdings, LLC (dba AmeriClaim) US Bank Claims 599.2011/21/2018 11737 Issued Alliant Insurance Services, Inc. US Bank Claims 147.0011/21/2018 11738 Cleared Ben Franklin Transit US Bank Claims 6,458.3811/21/2018 11739 Cleared BHL Court Reporters, Inc. US Bank Claims 453.8011/21/2018 11740 Cleared Brownlie Wolf & Lee, LLP US Bank Claims 14,603.0811/21/2018 11741 Cleared Byers & Anderson, Inc. US Bank Claims 302.6011/21/2018 11742 Cleared C-Tran US Bank Claims 748.7611/21/2018 11743 Issued Columbia County Public Transit US Bank Claims 1,399.0211/21/2018 11744 Cleared Community Transit US Bank Claims 3,392.9011/21/2018 11745 Cleared DeLacey, Carrie US Bank Claims 1,500.0011/21/2018 11746 Cleared Etter, McMahon, Lamberson, Van Wert & Oreskovich, P.C. US Bank Claims 585.0011/21/2018 11747 Cleared Fix Auto of Bellevue US Bank Claims 2,218.6811/21/2018 11748 Voided Flannigan, Tanya US Bank Claims 0.0011/21/2018 11749 Issued Flegenheimer, Leah US Bank Claims 1,726.9211/21/2018 11750 Cleared IntercityTransit US Bank Claims 272.0011/21/2018 11751 Issued Interventional Pain Program US Bank Claims 1,750.0011/21/2018 11752 Cleared IOD Incorporated US Bank Claims 207.8911/21/2018 11753 Cleared JG McDonald and Associates US Bank Claims 530.0011/21/2018 11754 Issued Kassa Insurance Services, Inc. US Bank Claims 1,092.0011/21/2018 11755 Issued Kitsap Transit US Bank Claims 3,025.9911/21/2018 11756 Issued Link Transit US Bank Claims 912.2511/21/2018 11757 Issued Malarchick Law Office US Bank Claims 5,833.0011/21/2018 11758 Cleared Matrix Absence Management, Inc US Bank Claims 2,898.50

Page 2 of 3



Issue Date Check Number Status Pay To The Order Of Bank Account Amount11/21/2018 11759 Issued Meridian Adjusting & Appraisals US Bank Claims 225.0011/21/2018 11760 Issued Muhamed, Ebrahim US Bank Claims 2,141.0411/21/2018 11761 Issued Pierce Transit US Bank Claims 44,714.6511/21/2018 11762 Cleared Renton Collision Center US Bank Claims 2,444.3911/21/2018 11763 Cleared Scholtz, Brendon US Bank Claims 622.8911/21/2018 11764 Cleared Spokane Transit Authority US Bank Claims 13,490.7511/21/2018 11765 Cleared Summit Law Group US Bank Claims 5,036.6011/21/2018 11766 Cleared Whatcom Transportation Authority US Bank Claims 358.7511/21/2018 11767 Cleared Williams Kastner & Gibbs PLLC US Bank Claims 4,269.1511/21/2018 11768 Issued Yamaguchi Obien Mangio, LLC US Bank Claims 392.2511/29/2018 11769 Issued Ben Franklin Transit US Bank Claims 731.8711/29/2018 11770 Issued Bushman Court Reporting US Bank Claims 263.5511/29/2018 11771 Issued Community Transit US Bank Claims 3,912.6511/29/2018 11772 Issued Grays Harbor Transit US Bank Claims 5,642.4311/29/2018 11773 Issued IntercityTransit US Bank Claims 1,576.2411/29/2018 11774 Issued James, Sanderson & Lowers US Bank Claims 1,564.3311/29/2018 11775 Issued JG McDonald and Associates US Bank Claims 1,281.1011/29/2018 11776 Issued Johnson, Kayla US Bank Claims 805.2311/29/2018 11777 Issued Matrix Absence Management, Inc US Bank Claims 4,777.0011/29/2018 11778 Issued Medicare US Bank Claims 497.7511/29/2018 11779 Issued Meridian Adjusting & Appraisals US Bank Claims 350.0011/29/2018 11780 Issued Paine Hamblen LLP US Bank Claims 1,489.5011/29/2018 11781 Issued Physician Direct Services, Inc US Bank Claims 1,025.0011/29/2018 11782 Issued RiverCities Transit US Bank Claims 300.0011/29/2018 11783 Issued Spokane Transit Authority US Bank Claims 450.0011/29/2018 11784 Issued State Farm Mutual Automobile Ins Co US Bank Claims 2,498.0211/29/2018 11785 Issued Stearns, Janet US Bank Claims 7,932.7811/29/2018 11786 Issued Washington State Dept. of Transportation US Bank Claims 476.4511/29/2018 11787 Issued Whatcom Transportation Authority US Bank Claims 600.0011/29/2018 11788 Issued Yakima Transit US Bank Claims 1,201.9411/29/2018 11789 Issued Zaremba Claims Service-Yakima US Bank Claims 514.2511/29/2018 11790 Issued Fannin Litigation Group, P.S. Trust Acct US Bank Claims 8,000.0011/29/2018 11791 Issued Kassa Insurance Services, Inc. US Bank Claims 105.0011/29/2018 11792 Issued AC Branch Holdings, LLC (dba AmeriClaim) US Bank Claims 249.7511/29/2018 11793 Issued Action Chiropractic US Bank Claims 3,193.0011/29/2018 11794 Issued Pierce Transit US Bank Claims 4,944.3811/29/2018 11795 Issued Skagit Transit US Bank Claims 3,543.90

Total 421,261.67

Page 3 of 3

December 2018 Administration Voucher Approval December 1st to December 31st 2018 vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing which has been e-mailed to the Executive Committee members on February 21, 2019. ACTION: I, __________________________, as of this date, ________________________, 2019 Move that the following checks be approved for payment: Vouchers: Check Numbers 28132 through 28204 in the amount of $215,204.12. Internet transfers of $46,006.88 for the 12/15/2018 payroll; $46,459.47 for the 12/31/2018 payroll; $159.50 for W-2 Fees; and $12,226.81 for the 12/2018 staff benefits. Internet and ACH payments for staff credit cards, travel/expense reimbursements and professional/misc. services total $33,355.14. Total voucher approval requested, including December 2018 staff payroll and Internet and ACH payments is $353,411.92. The motion was seconded by _________________________________and approved by a unanimous vote. I, the undersigned, PRESIDENT/VICE PRESIDENT OF THE WASHINGTON STATE TRANSIT INSURANCE POOL (WSTIP) of the state of Washington, do hereby certify that the merchandise or services, herein specified have been received and the following checks are approved for payment. ___________________________________ PRESIDENT/VICE-PRESIDENT ___________________________________ DATE

Washington State Transit Insurance PoolDecember 2018 Administration Vouchers



12/04/2018 28132 Alliant Insurance - Newport Beach 2018 Broker Fee - Final Installment US Bank Admin 25,300.00

12/04/2018 28133 AP Design Works LLC 2018 Holiday Card Designs US Bank Admin 140.00

12/04/2018 28134 Ben Franklin Transit Driver Recognition Program US Bank Admin 1,325.00

12/04/2018 28135 CenturyLink Telephone Services US Bank Admin 645.37

12/04/2018 28136 Cisco WebEx, LLC NBR Additional Storage US Bank Admin 16.00


12/04/2018 28138 Enterprise Rent A Car - Los Angeles Rental Car Exp - J. Kerrigan US Bank Admin 105.91




12/04/2018 28142 Replicon, Inc. Web Timesheet Billing/Time Renewal US Bank Admin 4,112.20

12/06/2018 ACH Christian DeVoll Travel/Expense Reimbursement US Bank Admin 2,488.37

12/13/2018 28143 AGRiP Advisory Standards& Recognition US Bank Admin 750.00


12/13/2018 28145 C-TRAN - Vancouver 2018 Risk Management Grant US Bank Admin 2,500.00

12/13/2018 28146 Capital City Landscape & Maintenance Landscape Maintenance US Bank Admin 294.03

12/13/2018 28147 Clallam Transit System 2018 Paperless Device Grant US Bank Admin 500.00



12/13/2018 28150 ED-McCAW Travel Reimbursement US Bank Admin 406.79

12/13/2018 28151 Enduris WA Building Supervisory Skills US Bank Admin 662.76


12/13/2018 28153 Intercity Transit 2018 Network Security Grant US Bank Admin 2,000.00


12/13/2018 28155 Jefferson Transit Authority Training Refund - Strategic Tools/Leadership US Bank Admin 75.00

12/13/2018 28156 Ken Mehin Travel Reimbursement US Bank Admin 46.98

12/13/2018 28157 Lemay - Pacific Disposal Waste/Recycling Services - November US Bank Admin 72.53

12/13/2018 28158 Matthew Lesh Consulting/Speaking Engagement US Bank Admin 2,841.00


12/13/2018 28160 Pacific Transit System 2018 Risk Management Grant US Bank Admin 2,500.00

12/13/2018 28161 Pierce Transit Collision Avoidance System Projects US Bank Admin 100,000.00

12/13/2018 28162 Professional Temp Staffing Agency Temp Services - Perry US Bank Admin 1,485.68


12/13/2018 28164 Seraphim Consulting & Training Solutions Securement Training US Bank Admin 1,850.00

12/13/2018 28165 Shonda Shipman Travel Reimbursement US Bank Admin 307.65


12/13/2018 28167 Terminix Commercial Pest Control Services US Bank Admin 128.50

Page 1 of 3




12/13/2018 28168 Valley Transit - WA Travel Reimbursement - J. Kinney US Bank Admin 371.69

12/14/2018 ACH Cedric Adams Expense Reimbursement US Bank Admin 16.60



12/18/2018 ACH Janet M. Gates Coverage Review Cmte Transcription US Bank Admin 780.00


12/20/2018 28170 Asotin CountyPTBA Travel Reimbursement - J. George US Bank Admin 778.60

12/20/2018 28171 C-TRAN - Vancouver Guest Rider - Pierce Transit US Bank Admin 760.36

12/20/2018 28172 City of Longview (RC) Guest Rider Meeting US Bank Admin 55.05

12/20/2018 28173 City of Olympia - Parks & Rec VOID: Olympia Center Rental Space - Permit# 9670 US Bank Admin 0.00

12/20/2018 28174 City of Pullman - Pullman Transit Guest Rider Mtg & Network Security Grant US Bank Admin 2,224.06

12/20/2018 28175 Clallam Transit System Travel Reimbursement - D. Mason US Bank Admin 172.92

12/20/2018 28176 Clean-Rite Janitorial Services Inc. Janitorial Services - December US Bank Admin 600.00


12/20/2018 28178 Great Wolf Lodge Lodging/Room/Catering Services US Bank Admin 19,981.11

12/20/2018 28179 Intercity Transit 2018 Risk Management Grant US Bank Admin 2,500.00

12/20/2018 28180 LINK Guest Rider Meeting US Bank Admin 120.87

12/20/2018 28181 Lynda Warren Travel Reimbursement US Bank Admin 505.14

12/20/2018 28182 Marisa Espinoza Travel Reimbursement US Bank Admin 37.26

12/20/2018 28183 PRIMA - Washington Chapter 2019 Membership Dues US Bank Admin 350.00


12/20/2018 28185 Sara M. Crouch Travel Reimbursement US Bank Admin 116.63

12/20/2018 28186 SKAGIT Paperless Meeting Device Grant US Bank Admin 500.00

12/20/2018 28187 Suzanne Coit Travel Reimbursement US Bank Admin 39.24

12/20/2018 28188 Twin Transit Authority Paperless Meeting Device Grant US Bank Admin 500.00

12/21/2018 ACH Jerome M. Lutin, PhD, PE, AICP, F.ITE Pierce Transit FTA Grant (CAWS) US Bank Admin 4,000.00

12/21/2018 ACH Veritas Forensic Accounting & Economics Pierce Transit FTA Grant (CAWS) US Bank Admin 492.50

12/21/2018 28189 City of Olympia - Parks & Rec Olympia Center Rental - Permit# 3023096.002 US Bank Admin 318.25

12/24/2018 ACH Amy Asher Travel Reimbursement US Bank Admin 187.48

12/24/2018 ACH Anna Broadhead Travel Reimbursement US Bank Admin 589.51

12/24/2018 28190 Karey Thornton Travel Reimbursement US Bank Admin 60.00

12/27/2018 ACH Cedric Adams Travel/Expense Reimbursement US Bank Admin 322.95

12/28/2018 28191 Brandy Heston Travel Reimbursement US Bank Admin 250.70



12/28/2018 28194 Hilton Garden Inn (Olympia) Lodging Exps - Multiple US Bank Admin 858.52


12/28/2018 28196 KitsapTransit Guest Rider Meeting US Bank Admin 398.06

Page 2 of 3




12/28/2018 28197 Matthew Branson Travel Reimbursement US Bank Admin 256.15

12/28/2018 28198 Nicoll Black & Feig PLLC Coverage Document Review US Bank Admin 2,645.85


12/28/2018 28200 Paul Shinners Travel Reimbursement US Bank Admin 173.95


12/28/2018 28202 Tom Hingson Travel Reimbursement US Bank Admin 110.73


12/28/2018 28204 WAPRO Membership Renewal US Bank Admin 25.00

248,559.26


12/13/2018 5883 Genie Payroll Services Year-End W-2 Fees US Bank Payroll 159.50



Total 353,411.92

Page 3 of 3

December 2018 Claims Voucher Approval December 1st to December 31st 2018 vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing which has been e-mailed to the Executive Committee members on February 21, 2019. ACTION: I, __________________________, as of this date, ________________________, 2019 Move that the following checks be approved for payment: Vouchers: Check Numbers 11796 through 11900 in the amount of $1,227,613.42. Total voucher approval requested is $1,227,613.42. The motion was seconded by _________________________________and approved by a unanimous vote. I, the undersigned, PRESIDENT/VICE PRESIDENT OF THE WASHINGTON STATE TRANSIT INSURANCE POOL (WSTIP) of the state of Washington, do hereby certify that the merchandise or services, herein specified have been received and the following checks are approved for payment. ___________________________________ PRESIDENT/VICE-PRESIDENT ___________________________________ DATE

Washington State Transit Insurance PoolDecember 2018 Claims Vouchers


Issue Date Check Number Status Pay To The Order Of Bank Account Amount12/3/2018 11796 Cleared Woods & Brangwin, PLLC Trust Account US Bank Claims 75,000.0012/3/2018 11797 Cleared Northwest Economics, LLC US Bank Claims 446.1112/3/2018 11798 Cleared Richards, Steve US Bank Claims 2,000.0012/3/2018 11799 Cleared Coates, Mary US Bank Claims 124.8912/3/2018 11800 Cleared Lakes Body Shop, Inc US Bank Claims 3,184.5512/5/2018 11801 Cleared Enterprise Rent A Car US Bank Claims 6,042.4512/5/2018 11802 Cleared Integrated Rehabilitation Group US Bank Claims 38.7312/5/2018 11803 Cleared Island Transit US Bank Claims 3,770.0012/5/2018 11804 Cleared JG McDonald and Associates US Bank Claims 3,670.7012/5/2018 11805 Cleared Mix Sanders Thompson, PLLC US Bank Claims 7,620.5012/5/2018 11806 Cleared Moburg, Seaton & Watkins US Bank Claims 492.0512/5/2018 11807 Cleared Skagit Transit US Bank Claims 10,528.7512/5/2018 11808 Cleared Spokane Emergency Group, a Professional LLC US Bank Claims 690.0012/5/2018 11809 Cleared USAA US Bank Claims 2,191.6512/5/2018 11810 Cleared Whatcom Transportation Authority US Bank Claims 1,217.8012/5/2018 11811 Cleared Wilson, Elaine US Bank Claims 1,277.3512/5/2018 11812 Cleared Yakima Transit US Bank Claims 3,542.3912/5/2018 11813 Cleared Pierce Transit US Bank Claims 15,604.7812/5/2018 11814 Cleared Community Transit US Bank Claims 1,393.5112/5/2018 11815 Cleared Law Office of Scott A. Campbell Trust Account US Bank Claims 25,000.0012/11/2018 11816 Cleared Joel Lambert US Bank Claims 38.2112/11/2018 11817 Cleared Lacey Collision Center, Inc. US Bank Claims 1,769.4812/11/2018 11818 Cleared Valentine, Daniel US Bank Claims 2,000.0012/14/2018 11819 Issued Alliant Insurance Services, Inc. US Bank Claims 5,534.3412/14/2018 11820 Cleared Carlson, McMahon & Sealby, PLLC US Bank Claims 12,511.9012/14/2018 11821 Cleared Blacclove, Ronte US Bank Claims 129.3012/14/2018 11822 Cleared CSMI US Bank Claims 675.0012/14/2018 11823 Cleared Davies Pearson, P.C. Trust Account US Bank Claims 750.0012/14/2018 11824 Cleared Enterprise Rent A Car US Bank Claims 1,341.5912/14/2018 11825 Cleared EP Holdings LLC US Bank Claims 757.5512/14/2018 11826 Issued Flannigan, Tanya US Bank Claims 400.0012/14/2018 11827 Cleared GEICO General Insurance Co. US Bank Claims 10,227.8712/14/2018 11828 Issued Hoiland, Kathy US Bank Claims 687.2812/14/2018 11829 Cleared IOD Incorporated US Bank Claims 35.8812/14/2018 11830 Cleared Keating, Bucklin, & McCormack, Inc., P.S. US Bank Claims 374.4012/14/2018 11831 Cleared Law, Lyman, Daniel, Kamerrer & Bogdanovich, PS US Bank Claims 901.6512/14/2018 11832 Cleared Lawrence, Barry US Bank Claims 1,350.2312/14/2018 11833 Cleared Lee, Chung-Lin US Bank Claims 3,834.2012/14/2018 11834 Cleared Liberty Mutual Insurance Group US Bank Claims 4,918.8812/14/2018 11835 Cleared Matrix Absence Management, Inc US Bank Claims 5,492.1812/14/2018 11836 Issued McCollums Northwest Auto Body, LLC US Bank Claims 1,560.49

Page 1 of 3



Issue Date Check Number Status Pay To The Order Of Bank Account Amount12/14/2018 11837 Issued McGrath, Joyce US Bank Claims 2,500.0012/14/2018 11838 Issued Mechanical & Control Services, Inc US Bank Claims 2,351.9212/14/2018 11839 Cleared Michaels Collision Center US Bank Claims 4,765.7412/14/2018 11840 Issued Olsen, Dillon US Bank Claims 2,600.0012/14/2018 11841 Cleared Parker, Rhonda US Bank Claims 1,500.0012/14/2018 11842 Cleared Parrish, Linda US Bank Claims 300.0012/14/2018 11843 Cleared Stenersen, Dave US Bank Claims 4,364.8712/14/2018 11844 Cleared Swingle, Rosanne US Bank Claims 9,000.0012/14/2018 11845 Cleared Trew Auto Body, Inc. US Bank Claims 876.3612/14/2018 11846 Cleared Tri-Med Ambulance, LLC US Bank Claims 971.0112/17/2018 11847 Issued Workman, Rob US Bank Claims 786.5212/20/2018 11848 Cleared Campiche Arnold, PLLC Trust Account US Bank Claims 550,000.0012/20/2018 11849 Cleared USAA Annuity Services Corporation US Bank Claims 200,000.0012/20/2018 11850 Cleared Kram & Wooster, P.S. Trust Account US Bank Claims 50,000.0012/21/2018 11851 Cleared AC Branch Holdings, LLC (dba AmeriClaim) US Bank Claims 1,958.4712/21/2018 11852 Issued Alliant Insurance Services, Inc. US Bank Claims 588.0012/21/2018 11853 Issued Ben Franklin Transit US Bank Claims 3,159.2512/21/2018 11854 Cleared Broom, Robert US Bank Claims 4,256.9812/21/2018 11855 Cleared Brownlie Wolf & Lee, LLP US Bank Claims 7,386.7612/21/2018 11856 Cleared Bud Clary Auto Group US Bank Claims 752.5112/21/2018 11857 Cleared City of Everett US Bank Claims 1,424.9012/21/2018 11858 Cleared Community Transit US Bank Claims 5,069.0012/21/2018 11859 Cleared Egger, Rosemary US Bank Claims 1,000.0012/21/2018 11860 Cleared Engineering Systems, Inc. US Bank Claims 1,285.2012/21/2018 11861 Issued Frank, Martin US Bank Claims 737.5012/21/2018 11862 Cleared GEICO General Insurance Co. US Bank Claims 200.0012/21/2018 11863 Issued Hieb, Candice US Bank Claims 4,000.0012/21/2018 11864 Cleared Hinshaw's Auto Body US Bank Claims 1,038.6512/21/2018 11865 Cleared IntercityTransit US Bank Claims 3,397.2412/21/2018 11866 Cleared James, Sanderson & Lowers US Bank Claims 7,261.0512/21/2018 11867 Issued JG McDonald and Associates US Bank Claims 477.5012/21/2018 11868 Issued Kitsap Transit US Bank Claims 501.8112/21/2018 11869 Issued Mahleik, Michael US Bank Claims 500.0012/21/2018 11870 Cleared Matrix Absence Management, Inc US Bank Claims 4,302.2212/21/2018 11871 Cleared Mills Meyers Swartling PS US Bank Claims 9,949.5012/21/2018 11872 Issued Mitchell, Carol US Bank Claims 2,500.0012/21/2018 11873 Cleared Moburg, Seaton & Watkins US Bank Claims 641.7012/21/2018 11874 Cleared Monroe Therapeutic Massage, P.S. US Bank Claims 813.3212/21/2018 11875 Issued MultiCare Valley Hospital US Bank Claims 7,305.4512/21/2018 11876 Cleared Paine Hamblen LLP US Bank Claims 87.0012/21/2018 11877 Cleared Pierce Transit US Bank Claims 26,066.5312/21/2018 11878 Cleared Roberts, Robert US Bank Claims 4,000.00

Page 2 of 3



Issue Date Check Number Status Pay To The Order Of Bank Account Amount12/21/2018 11879 Cleared Rosser Chiropractic, PS US Bank Claims 2,028.0012/21/2018 11880 Cleared Schmidt, Douglas US Bank Claims 4,613.1312/21/2018 11881 Cleared Skagit Transit US Bank Claims 6,247.2512/21/2018 11882 Cleared Summit Law Group US Bank Claims 6,055.3912/21/2018 11883 Issued Spokane Emergency Group, a Professional LLC US Bank Claims 1,931.0012/21/2018 11884 Cleared Valley Medical Center US Bank Claims 2,840.6312/21/2018 11885 Cleared Willmes Law Group, PLLC US Bank Claims 2,299.0012/28/2018 11886 Issued AC Branch Holdings, LLC (dba AmeriClaim) US Bank Claims 423.7512/28/2018 11887 Cleared C-Tran US Bank Claims 679.8012/28/2018 11888 Cleared Community Transit US Bank Claims 5,956.8312/28/2018 11889 Issued Copart US Bank Claims 1,355.1812/28/2018 11890 Issued Etter, McMahon, Lamberson, Van Wert & Oreskovich, P.C. US Bank Claims 3,992.7512/28/2018 11891 Issued Grays Harbor Transit US Bank Claims 644.3712/28/2018 11892 Issued James, Sanderson & Lowers US Bank Claims 797.9812/28/2018 11893 Issued PEMCO Mutual Insurance Co. US Bank Claims 1,971.0012/28/2018 11894 Issued Pierce Transit US Bank Claims 11,236.1212/28/2018 11895 Cleared Simeamativa Aga US Bank Claims 316.3512/28/2018 11896 Issued Spruill, Leon US Bank Claims 687.1912/28/2018 11897 Issued Spokane Transit Authority US Bank Claims 6,941.6312/28/2018 11898 Issued Whatcom Transportation Authority US Bank Claims 4,254.0912/28/2018 11899 Cleared Williams Kastner & Gibbs PLLC US Bank Claims 3,399.6212/28/2018 11900 Cleared Zaremba Claims Service-Yakima US Bank Claims 9,138.76

Total 1,227,613.42

Page 3 of 3

January 2019 Administration Voucher Approval January 1st to January 31st 2019 vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing which has been e-mailed to the Executive Committee members on February 21, 2019. ACTION: I, __________________________, as of this date, ________________________, 2019 Move that the following checks be approved for payment: Vouchers: Check Numbers 28205 through 28263 in the amount of $1,589,106.73. Internet transfers of $53,873.67 for the 01/15/2019 payroll; $64,517.37 for the 01/31/2019 payroll; and $12,510.42 for the 01/2019 staff benefits. Internet and ACH payments for staff credit cards, travel/expense reimbursements and professional/misc. services total $29,855.63. Total voucher approval requested, including January 2019 staff payroll and Internet and ACH payments is $1,749,863.82. The motion was seconded by _________________________________and approved by a unanimous vote. I, the undersigned, PRESIDENT/VICE PRESIDENT OF THE WASHINGTON STATE TRANSIT INSURANCE POOL (WSTIP) of the state of Washington, do hereby certify that the merchandise or services, herein specified have been received and the following checks are approved for payment. ___________________________________ PRESIDENT/VICE-PRESIDENT ___________________________________ DATE

Washington State Transit Insurance PoolJanuary 2019 Administration Vouchers



01/03/2019 28205 Alliant Insurance - Newport Beach 2019 Insurance Renewals (Multiple) US Bank Admin 1,481,732.95


01/03/2019 28207 Twin Transit Authority 2018 Network Security Grant US Bank Admin 550.00

01/03/2019 28208 Washington State Transit Association 2019 Membership Dues US Bank Admin 200.00

01/03/2019 28209 Western States Fire Protection Co. Inactive Sensor Removal US Bank Admin 299.20

01/09/2019 28210 A-L-S American Landscape Services, LLC Landscape Maintenance US Bank Admin 1,030.19


01/10/2019 28212 Capitol City Press, Inc. WSTIP Envelopes US Bank Admin 858.10

01/10/2019 28213 City of Olympia - Utilities Utilities: Current Billing 12/21/2018 US Bank Admin 469.81

01/10/2019 28214 Cooper Studios LTD Board Portrait Session US Bank Admin 1,683.14



01/10/2019 28217 Kulshan Law Group Skagit Transit US Bank Admin 2,025.00

01/10/2019 28218 Language Line Services, Inc. Document Translation US Bank Admin 441.11


01/10/2019 28220 Lemay - Pacific Disposal Waste/Recycling Services - December US Bank Admin 72.53

01/10/2019 28221 Mix Sanders Thompson, PLLC Columbia Co. US Bank Admin 5,000.00

01/10/2019 28222 Nicoll Black & Feig PLLC Spokane and Community Transits US Bank Admin 545.85




01/10/2019 28226 Yakima Transit-City of Yakima 2019 Risk Management Grant US Bank Admin 2,500.00

01/10/2019 28227 YourMembership.com, Inc. Hosting & Management Services US Bank Admin 7,344.75

01/11/2019 ACH Brenda Barnett Travel Reimbursement US Bank Admin 42.29

01/11/2019 ACH Christian DeVoll Travel/Expense Reimbusement US Bank Admin 620.72

01/14/2019 ACH Andrea Powell Travel/Exp Reimbursement US Bank Admin 177.00


01/18/2019 28229 City of Longview (RC) Guest Rider - Kitsap Transit US Bank Admin 459.84



01/22/2019 ACH Janet M. Gates Pierce Transit FTA Grant (CAWS) US Bank Admin 180.00

01/22/2019 ACH Jerome M. Lutin, PhD, PE, AICP, F.ITE Pierce Transit FTA Grant (CAWS) US Bank Admin 800.00

01/22/2019 28231 A-L-S American Landscape Services, LLC Landscape Maintenance - January US Bank Admin 540.14

01/22/2019 28232 All Painting, LLC Coatings & More Interior Painting/Carpet Replacement US Bank Admin 20,833.71

01/22/2019 28233 Christie Law Group, PLLC WSTIP US Bank Admin 1,536.00



Page 1 of 2

Washington State Transit Insurance PoolJanuary 2019 Administration Vouchers



01/22/2019 28236 Copiers Northwest, Inc. Copier Lease/Images US Bank Admin 679.41

01/22/2019 28237 Department of Enterprise Services Local Gov't Self Insurance Program US Bank Admin 5,860.20

01/22/2019 28238 Express Personnel Services Temp Services - Moving Services US Bank Admin 162.04


01/22/2019 28240 Hermanson Company, LLP Preventative Maintenance US Bank Admin 381.15


01/23/2019 ACH Veritas Forensic Accounting & Economics Pierce Transit FTA Grant (CAWS) US Bank Admin 759.55

01/25/2019 28242 Constance Poulsen Training - Stepping Up/Supervisor US Bank Admin 2,500.00

01/25/2019 28243 Danette Brannin Travel Reimbursement US Bank Admin 81.04


01/25/2019 28245 Lynda Warren Travel Reimbursement US Bank Admin 326.92

01/25/2019 28246 Meghan A. Heppner 2019 Jeffrey S. Ristau Scholarship US Bank Admin 1,000.00

01/25/2019 28247 MSDSonline 2019 HQ Account Renewal US Bank Admin 6,751.80

01/25/2019 28248 Tom Hingson Travel Reimbursement US Bank Admin 68.60

01/29/2019 ACH US Bank Visa (Purchasing Cards) Credit Card Exps US Bank Admin 2,806.19

01/31/2019 28249 Agreement Dynamics, Inc. Retreat Facilitation US Bank Admin 6,364.43



01/31/2019 28252 City of Longview (RC) Guest Rider - Kitsap Transit US Bank Admin 772.52

01/31/2019 28253 Clallam Transit System Travel Reimbursement - D. Mason US Bank Admin 175.32

01/31/2019 28254 Copiers Northwest, Inc. Copier Lease/Images US Bank Admin 435.96

01/31/2019 28255 Creative Office Office Furniture (Kerrigan/Thornton/Small Conf) US Bank Admin 13,591.99


01/31/2019 28257 Express Personnel Services Temp Services - Moving Services US Bank Admin 324.08


01/31/2019 28259 Ken Mehin Travel Reimbursement US Bank Admin 107.88

01/31/2019 28260 Network Computing Architects, Inc. ShoreTel IP655 Phone US Bank Admin 602.13


01/31/2019 28262 SKAGIT Travel Reimbursement - J. Macdonald US Bank Admin 115.38

01/31/2019 28263 Western States Fire Protection Co. Service Request US Bank Admin 299.20

1,618,962.36




Total 1,749,863.82

Page 2 of 2

DocuSign Envelope ID: 33BA568F-5D01-4862-94F1-CE7B36E82620

January 2019 Claims Voucher Approval January 1st to January 31st 2019 vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing which has been e-mailed to the Executive Committee members on February 21, 2019. ACTION: I, __________________________, as of this date, ________________________, 2019 Move that the following checks be approved for payment: Vouchers: Check Numbers 11901 through 12004 in the amount of $637,650.26. Total voucher approval requested is $637,650.26. The motion was seconded by _________________________________and approved by a unanimous vote. I, the undersigned, PRESIDENT/VICE PRESIDENT OF THE WASHINGTON STATE TRANSIT INSURANCE POOL (WSTIP) of the state of Washington, do hereby certify that the merchandise or services, herein specified have been received and the following checks are approved for payment. ___________________________________ PRESIDENT/VICE-PRESIDENT ___________________________________ DATE

Washington State Transit Insurance PoolJanuary 2019 Claims Vouchers


Issue Date Check Number Status Pay To The Order Of Bank Account Amount1/3/2019 11901 Cleared Durbin, Sarah US Bank Claims 1,000.001/3/2019 11902 Cleared Fiorino, Maria US Bank Claims 1,548.941/4/2019 11903 Cleared Community Transit US Bank Claims 666.961/4/2019 11904 Cleared Enterprise Rent A Car US Bank Claims 1,602.291/4/2019 11905 Cleared Farmers Insurance Company of Washington US Bank Claims 128.001/4/2019 11906 Cleared IntercityTransit US Bank Claims 30.001/4/2019 11907 Cleared Kitsap Transit US Bank Claims 90.001/4/2019 11908 Cleared Kulshan Law, PLLC US Bank Claims 2,714.501/4/2019 11909 Cleared Matrix Absence Management, Inc US Bank Claims 1,674.501/4/2019 11910 Cleared Northwest Energy Services US Bank Claims 1,378.351/4/2019 11911 Issued Pierce Transit US Bank Claims 11,627.921/4/2019 11912 Cleared Quinn, Eileen US Bank Claims 28.001/4/2019 11913 Cleared Rody Chiropractic US Bank Claims 5,037.751/4/2019 11914 Cleared Spokane Transit Authority US Bank Claims 2,249.861/4/2019 11915 Cleared Whatcom Transportation Authority US Bank Claims 4,475.901/4/2019 11916 Cleared Yamaguchi Obien Mangio, LLC US Bank Claims 600.001/4/2019 11917 Cleared The Travelers Home and Marine Insurance Co US Bank Claims 483.641/11/2019 11918 Cleared AC Branch Holdings, LLC (dba AmeriClaim) US Bank Claims 508.751/11/2019 11919 Cleared Aldercrest Auto Rebuild, Inc. US Bank Claims 733.331/11/2019 11920 Issued Alliant Insurance Services, Inc. US Bank Claims 2,882.001/11/2019 11921 Cleared Carlson, McMahon & Sealby, PLLC US Bank Claims 2,720.501/11/2019 11922 Cleared CCC Information Services, Inc. US Bank Claims 53.901/11/2019 11923 Cleared CIOX Health, LLC US Bank Claims 41.341/11/2019 11924 Cleared Classic Claims Service, Inc. US Bank Claims 207.501/11/2019 11925 Cleared CSMI US Bank Claims 2,073.751/11/2019 11926 Cleared Enterprise Rent A Car US Bank Claims 1,071.361/11/2019 11927 Cleared Gruber Chiropractic PS US Bank Claims 96.161/11/2019 11928 Cleared JG McDonald and Associates US Bank Claims 5,658.951/11/2019 11929 Cleared Lacey Collision Center, Inc. US Bank Claims 930.831/11/2019 11930 Cleared Law Office of Benjamin A. Pepper Trust Account US Bank Claims 15,000.001/11/2019 11931 Cleared Law Offices of Laura L. Jaeger US Bank Claims 2,250.001/11/2019 11932 Cleared Malarchick Law Office US Bank Claims 32,063.001/11/2019 11933 Cleared Marconi Chiropractic & Wellness US Bank Claims 2,597.001/11/2019 11934 Cleared Medical Evaluation Specialists, Inc. US Bank Claims 207.501/11/2019 11935 Cleared Mills Meyers Swartling PS US Bank Claims 34,351.871/11/2019 11936 Cleared Matrix Absence Management, Inc US Bank Claims 2,498.001/11/2019 11937 Cleared Nicholson, Christopher US Bank Claims 3,267.391/11/2019 11938 Cleared Mix Sanders Thompson, PLLC US Bank Claims 6,844.921/11/2019 11939 Cleared State Farm Mutual Automobile Ins Co US Bank Claims 200.911/11/2019 11940 Cleared Paine Hamblen LLP US Bank Claims 334.001/11/2019 11941 Cleared Spokane Transit Authority US Bank Claims 300.00

Page 1 of 3



Issue Date Check Number Status Pay To The Order Of Bank Account Amount1/11/2019 11942 Voided Jeffrey Hofstader & Numerica Federal Credit Union US Bank Claims 0.001/18/2019 11943 Cleared Amazing Life Chiropractic and Wellness, PLLC US Bank Claims 2,140.001/18/2019 11944 Issued Aquaflow Gutters US Bank Claims 695.001/18/2019 11945 Cleared Balakireva, Elena US Bank Claims 2,944.031/18/2019 11946 Cleared Ben Franklin Transit US Bank Claims 300.001/18/2019 11947 Cleared Clark, Robin US Bank Claims 2,528.181/18/2019 11948 Cleared Cohen, Manni, Theune & Manni, LLP US Bank Claims 35,000.001/18/2019 11949 Cleared Cohen, Manni, Theune & Manni, LLP US Bank Claims 15,000.001/18/2019 11950 Issued Community Transit US Bank Claims 5,834.141/18/2019 11951 Cleared Dan Bekker US Bank Claims 1,890.131/18/2019 11952 Cleared Moran, Rachel US Bank Claims 2,000.001/18/2019 11953 Cleared IntercityTransit US Bank Claims 758.491/18/2019 11954 Cleared Liberty Mutual Insurance Group US Bank Claims 1,521.001/18/2019 11955 Cleared Medical Evaluation Specialists, Inc. US Bank Claims 595.001/18/2019 11956 Issued Pierce Transit US Bank Claims 564.951/18/2019 11957 Cleared Sandberg, Perry US Bank Claims 3,447.081/18/2019 11958 Issued Skagit Transit US Bank Claims 245,000.001/18/2019 11959 Cleared Spokane Transit Authority US Bank Claims 3,472.091/18/2019 11960 Cleared Titus-Will Ford Sales Inc. US Bank Claims 1,782.621/18/2019 11961 Cleared Tree of Health Integrative Medicine PLLC US Bank Claims 850.001/18/2019 11962 Cleared Trejo, Rachel US Bank Claims 2,247.501/18/2019 11963 Issued Volk, Brendan US Bank Claims 779.011/18/2019 11964 Cleared Williams Investments Apartments US Bank Claims 780.001/18/2019 11965 Cleared Harris, Starling US Bank Claims 2,500.001/18/2019 11966 Issued Law Offices of Anthony C. Otto Trust Account US Bank Claims 13,500.001/18/2019 11967 Issued Joe Goldstein for Van Pelt Construction, LLC US Bank Claims 11,759.161/18/2019 11968 Cleared Lombardi, Regina US Bank Claims 1,500.001/22/2019 11969 Cleared McGrath, Joyce US Bank Claims 2,500.001/25/2019 11970 Issued Alliant Insurance Services, Inc. US Bank Claims 1,137.001/25/2019 11971 Cleared Brownlie Wolf & Lee, LLP US Bank Claims 14,046.171/25/2019 11972 Cleared Island Transit US Bank Claims 3,725.741/25/2019 11973 Cleared JG McDonald and Associates US Bank Claims 970.001/25/2019 11974 Cleared Joel Lambert US Bank Claims 36.411/25/2019 11975 Cleared Paine Hamblen LLP US Bank Claims 839.701/25/2019 11976 Issued Pierce Transit US Bank Claims 175.701/25/2019 11977 Issued Skagit Transit US Bank Claims 5,526.641/25/2019 11978 Cleared Summit Law Group US Bank Claims 4,010.501/25/2019 11979 Cleared Thacker, Christina US Bank Claims 2,809.831/25/2019 11980 Cleared Varney, Lyle US Bank Claims 1,000.001/25/2019 11981 Cleared Virginia Mason Medical Center US Bank Claims 554.001/25/2019 11982 Cleared Warwick Chiropractic, PLLC US Bank Claims 9,065.001/25/2019 11983 Issued Yakima Transit US Bank Claims 2,106.05

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Issue Date Check Number Status Pay To The Order Of Bank Account Amount1/25/2019 11984 Cleared Numerica Credit Union US Bank Claims 17,922.271/31/2019 11985 Issued Alliant Insurance Services, Inc. US Bank Claims 1,086.501/31/2019 11986 Issued Ben Franklin Transit US Bank Claims 2,165.261/31/2019 11987 Issued C-Tran US Bank Claims 6,904.651/31/2019 11988 Issued Centerpoint Language Services US Bank Claims 300.001/31/2019 11989 Issued Community Transit US Bank Claims 9,707.231/31/2019 11990 Issued Etter, McMahon, Lamberson, Van Wert & Oreskovich, P.C. US Bank Claims 90.001/31/2019 11991 Issued Grays Harbor Transit US Bank Claims 3,461.861/31/2019 11992 Issued Herrell, Betty US Bank Claims 3,100.001/31/2019 11993 Issued Kitsap Transit US Bank Claims 2,038.331/31/2019 11994 Issued Law, Lyman, Daniel, Kamerrer & Bogdanovich, PS US Bank Claims 382.501/31/2019 11995 Issued Matrix Absence Management, Inc US Bank Claims 3,621.001/31/2019 11996 Issued Meridian Adjusting & Appraisals US Bank Claims 339.591/31/2019 11997 Issued Musbeh, Mohammad US Bank Claims 2,701.011/31/2019 11998 Issued Pierce Transit US Bank Claims 5,576.201/31/2019 11999 Issued Reed, John US Bank Claims 1,500.001/31/2019 12000 Issued Skagit Transit US Bank Claims 5,155.401/31/2019 12001 Issued Spokane Transit Authority US Bank Claims 8,578.631/31/2019 12002 Issued Whatcom Transportation Authority US Bank Claims 1,178.001/31/2019 12003 Issued Yakima Transit US Bank Claims 1,331.141/31/2019 12004 Issued IntercityTransit US Bank Claims 390.00

Total 637,650.26

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February 21, 2019 TO: WSTIP Executive Committee FROM: Staci Jordan, President SUBJECT: Executive Committee Retreat Wrap-up THIS IS INFORMATIONAL ONLY The Executive Committee Retreat was held on January 16 (evening), 17 (all day), and 18 (half day) at the Cedarbrook Lodge in SeaTac. The facilitator for the retreat was Marilynne Beard from Dynamic Agreements. Attendees were: Danette Brannin Geri Beardsley Amy Cleveland Staci Jordan

Tom Hingson Joe Macdonald Dunyele Mason Ken Mehin

Agustin Ortega Paul Shinners Lynda Warren Derrick Wojcik-Damers

Staff and guests were: Cedric Adams Tracey Christianson

Rick Hughes Joanne Kerrigan

Andrea Powell Kevin Wick, PWC

The Retreat kicked off Wednesday evening after dinner with a focus on communication styles. This was done as both an icebreaker and learning experience to identify how individuals like to learn and how to best communicate with those styles. On Thursday we briefly reviewed the roles of the Board and Executive Committee. We reviewed the rules that we have used to govern our meetings (our tribal rules) and did not make any changes. We then tackled the tasks I had worked with staff to pre-determine. Some tasks we worked on in small groups, and others we worked on as one group. Please see the attached document for information on all tasks and their outcomes. TC/sj

- Strategic Plan: Long-Range Strategic Vision and Financial Target Policy Page | 1-1

Task 1 - Strategic Plan: Long-Range Strategic Vision and Financial Target Policy What problem are we trying to solve? At the 2018 Annual Meeting, member representatives reported unfavorable discussion regarding the financial goal of being able to support a self-insured retention of $5 million by 2023. Background The WSTIP adopted a Financial Target Policy in 2013 that stated the Pool’s philosophy and desire to continue to move away from the commercial insurance market. In order to live this philosophy, the policy went on to state, “The Board shall, to the maximum extent feasible, in the adoption of the Pool’s annual budget incorporate allocations and contributions which will allow and support a self-insured retention for liability exposures of $5 million dollars by 2023.” The Board believed it could achieve the goal within current contributions as evidenced in policy statement #4, “The Board believes that the self-insured retention goal in this policy can be achieved through the current level of allocations and contributions.” The Board recognized that deviations could be necessary as evidenced in policy Statement #3, ”In the adoption of this policy, the Board realizes that there may be uncertainties in the Pool’s financial future that may require temporary deviations from the annual allocations and contributions that may otherwise be required.” In keeping with the Board’s financial target policy, the Executive Committee amended the Governance Policy: Actuarial Policy to include a specific study every three years to track progress to the goal. The Capital Funding Study was done in 2018. The Background section of the 2018 Study PriceWaterhouseCoopers (PwC) provides more historical background regarding Capital Funding studies. This states the following:

“When governmental insurance pools first formed several decades ago, insurance coverage for public entities was becoming either unaffordable or unavailable in the traditional insurance marketplace. Pooling risks with similar entities was an alternative to the insurance marketplace and provided greater cost stability than operating with no insurance protection. Even with the aggregation of risks from many different entities, the annual costs of the pooling programs were still uncertain and thus some form of capital was required. Initially, the capital for many pools came in the form of a “cash call” provision whereby a pool could assess its membership in the event of a funding shortfall. In essence, the contribution paid was a deposit and there could be a retroactive assessment if the initial deposit was insufficient to pay for the program costs.


Over time, most pools have built up a capital position which serves as a buffer between the budgeted outcomes and potential adverse deviations of actual outcomes. The amount of capital to maintain is largely a function of the members’ financial expectations of the program they own and participate in. Operating with a remote chance of returning unpaid losses to members requires more capital than a program which can tolerate periodic cash calls to replenish funding shortfalls. For most pools, the members’ financial expectations of their program have matured over the years. When pools were first formed, the financial benefit of having an insurance program they could control was much greater than the potential risk and burden of a cash call. However, pool members now expect their insurance program to deliver stable rates, financial soundness, and maintain a focused commitment to their own unique risks. These needs all require capital. In addition, many pools have increased their retention levels and made other financial decisions over time which increases their risk and thus capital requirements. At the same time, pool members face their own financial pressures and may prefer lower rates or a return of pool funds if the program has excess capital available.”

The 2013 Board believed the following:

• Using a cash call would be contrary to the modern expectations of the members, although it remains an available tool for Washington pools.

• The commercial insurance market continues to be difficult for transit risk. There is historical

evidence showing we should expect a continued need to escalate the self-insurance retention which brings more risk and uncertainty into our local control, but increases the capital needed to fund the program.

• Loss costs escalate over time for any number of reasons including inflation, medical costs, and

jury verdicts.

• Pools get into financial trouble when large events test them financially. Like the idea of floods, the 2013 Board wanted to be able to financially weather layers of risk and loss that might test the Pool ranging from one time in 100 years to one time in 200 years. This means the established goal was to be within a range of available funding.

Issues We have been focusing on this goal for six years and have four years remaining to meet this target. The 2018 Capital Funding Study showed that annual rate increases of 10% would be required to achieve the goal in the next four years assuming the Pool continues to experience the same level(s) of loss. However, should the Pool have better loss experience, the goal could be reached prior to 2023 or the rate could be de-escalated in order to target the goal at the same time. Either way, annual review is required, and loss experience is an important factor.


The Strategic Plan also has a strategic priority of competitive and stable rates. In absence of the long range strategic financial target, the Board set a tolerance for rate stability to be 5% annual increase for the composite liability rate. The 2018 Retreat attendees thought about the loss experience aspect of this same problem which lead them to the goal of developing an education program on emerging technology which includes a range of technology innovations. The point was to convey the importance of safety and risk mitigation using available tools and direct decision making to lower members’ cost of risk. This work included developing a Safety Catalog, a new technology grant program (funded for 2019), and a road-show presentation that was more detailed on member’s unique loss history with a call to action. This work continues in 2019. What options does the Pool have for modifying the target year? Or the retention goal? In absence of any revisions to the Pool’s goals, the members should expect a 10% rate increase for the next four years tempered only if there is a significant improvement in loss history. Who should do what when?

• Retreat attendees to discuss problem statement, background, and issues (including potentially identifying more issues).

• The goal and the Financial Target Policy is a Board policy, and therefore, any change to the goal is a full Board decision.

Why is this worth spending time on? The financial health of the Pool and meeting the expectations of members is a cornerstone issue for the Pool. Resource Materials: Strategic Plan: Long-Range Strategic Vision (Page 2 of the Plan) Governance Policy: Financial Target Policy Governance Policy: Actuarial Policy 2018 Capital Funding Study by PwC Guest: Kevin Wick, PwC Timeframe Is this urgent? NO Is this important? YES Is this time sensitive? YES, part of the annual budget development


Retreat Notes – Task 1 – Long-Range Strategic Vision and Financial Target Policy Retreat participants agreed it was an issue. Discussed topic with Kevin.

- New Perspective on the issue after Retreat - Differing levels of background history - Question to stay the course or change? - Want to avoid cash calls - Should we add to balance? What is the right balance? - (up arrow) Increase/Raise Claims challenges target - Either (up arrow) increase/raise contributions or each agency has to reserve against a potential

call - Keep target or change the target - Keep the date or change the date - Increased costs can raise or push SIR level - What is the path to $5 million? Is there a proactive approach? - Membership wants predictability - Retain risk vs insure (cost benefit analysis)

Topic to go to Underwriting Committee. This committee reports to EC and then to Board before September. June Work Session Gus – Chair 3 EC + Chair + up to 3 Board members Time sensitivity: Part of the annual budget development

Urgent

Not

Urgent

Important Underwriting Committee

Less Important

- from 2018: Ratios / Ratio Subcommittee Page | 2-1

Task 2 - from 2018: Ratios / Ratio Subcommittee What problem are we trying to solve? What metrics should the Audit Committee use to evaluate the Pool’s financial performance and health? Background Besides annual actuarial studies and capital funding studies every three years, the Pool has typically tracked some ratios to also provide feedback on the Pool’s overall financial health. During review of the Strategic Target Financial Ratios policy, the Audit Committee assessed the ratios that are currently tracked and reported to the Board. Those ratios are the Expense ratio and the Loss ratio. The Ratio Subcommittee (of the Audit Committee) was formed to evaluate current metrics, make recommendations for reporting additional metrics, set preliminary performance targets and report results to the Audit Committee. Six ratios have been identified by the Ratio Subcommittee and preliminary targets have been set. Issues • Are these ratios meaningful, relevant and understandable? • What should the target be for these ratios? • Which Pools should we use for comparison? Who should do what when? Retreat attendees to answer, who should do what when, question. However, a sample could be: • Ratio Subcommittee will report results to the Audit Committee during the February meeting. • Audit Committee will review both ratios and targets, and changes to targets. The Audit Committee is

comprised of the Executive Committee members. • Upon approval by the Audit Committee / Executive Committee, the ratios and targets will be

incorporated into policy and presented to the Policy Governance Committee for review. • Upon approval by the Governance Policy Committee, the policy will be presented to the Board for

adoption. • The policy will be reviewed by the Audit Committee annually. The 2019 review will include

comparison of ratios and targets to peer Pools. Why is this worth spending time on? Meaningful and understandable ratios will provide insight into the Pool’s financial performance and health. These ratios will be used by the Audit Committee to provide oversight, and by the Board to inform budget and policy strategies. Supporting Materials • Memo summarizing ratios and preliminary targets. • Individual sheets for ratios with historical data Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? No


Retreat Notes – Task 2 - Strategic Ratios / Ratio subcommittee The work of the ratios subcommittee is complete.

- Proposed ratios and updated Target Financial Ratios Policy to be presented to the Audit / EC Committee at the February meeting.

- Upon approval, policy and ratios presented to the Governance Policy Committee. - Upon approval, policy and ratios presented to the Full Board for adoption.

Urgent Not Urgent

Important Less Important Audit Committee (work complete)

- Annual Work Plan Item: Committee Review Page | 3-1

Task 3 - Annual Work Plan Item: Committee Review What problem are we trying to solve? Do we have the right committees? Do we have the right people on the committees? Are the committees effective in their current makeup? Is the charter for each committee still valid? Is there still work for the committee to do? Is there a need for additional committees? Background WSTIP has the following committees: Audit, Board Development, Coverage Review, Data Governance, Emerging Risk and Opportunities, Governance Policy and Nominations and Elections. Each of these committees fulfill a vital role within the governance structure, allowing a smaller group of individuals to work issues. The Audit Committee is established by policy. All other committees are established by charter. The following committees are either a subset of the Executive Committee or are the entire Executive Committee: Audit, Board Development, Coverage Review, and Governance Policy. Only Executive Committee members are on these committees. These committees were established as Board committees and were opened to participation by Board members and member staff: Data Governance and Emerging Risk and Opportunities. An Executive Committee member has chaired every committee to ensure the charter adopted by the Executive Committee is kept and to facilitate reporting to the Committee. There is no policy requirement, but it does work well in practice. Committee issues Audit Committee – established by policy, the Audit Committee is the entire Executive Committee. This means that the meetings must be held with the Executive Committee. Therefore, we have scheduled meetings to be held in February, March, and May. The policy requires the committee to meet twice a year. These meetings reduce the time available to the Executive Committee on those months. In so saying, the Committee did gain momentum last year. Staff: Administrative Services Manager Board Development – established by charter, the Member Representatives (small, medium, and large) and the At-Large Member Representative make up this Committee. The meetings are held directly after the Executive Committee meetings. The At-Large Board member chairs that committee. Staff: Member Services Manager Coverage Review – established by charter, the Coverage Review Committee meets once per quarter (more if needed). This Committee has attracted attention and participation by non-Committee members. Should this Committee be reformed as a Board subcommittee and open membership to a wider group of people? Staff: Executive Director, Claims Manager, and Legal Counsel Data Governance – established by charter as a subcommittee of the Board, this committee is open to participation by Board members and member staff. However, participants have dwindled making meetings non-representative of the membership. Staff: Administrative Services Manager


Emerging Risk and Opportunities – established by charter as a subcommittee of the Board, this committee is open to participation of all Board members and has often been a lively Committee doing meaningful work. However, the chair (Staci) is now the President of WSTIP will likely have difficulty juggling this Chair assignment with her other tasks. Also, participants have dwindled. Staff: Member Services Manager Governance Policy – established by charter as a subcommittee of the Executive Committee, this committee consists of the President, Vice President, and Secretary. The Vice President chairs the committee. This is a well-established committee that meets after every Executive Committee to review WSTIP policies on an annual basis. Staff: Executive Director Nominations and Elections – established by charter as a subcommittee of the Executive Committee, this committee also consists of the officers. Their job is to identify and encourage Board members to run for the Executive Committee each year. This is a well-established Committee that only meets September, October, and November. Staff: Board Relations Who should do what when?

• At this meeting, committee charters are reviewed to ensure all standing committees are still appropriate.

• By the end of February, all committee charters have been reviewed by their committees with any changes presented for Executive Committee adoption in February or March.

• By the March Executive Committee meeting, all committee charters have been reviewed and all committees have been re-established as to purpose, make-up, and meetings.

Why is this worth spending time on? This is an annual task to ensure we have the right Committees, the right people are on Committees, and the Committees are working with their purpose in mind. Committees do take time for participants and staff, so we want to be sure we are getting the value from the Committees established with their purpose. Historically, retreat outcomes have included sunsetting committees, changing committee’s purpose, and creating new committees. The work of doing all that is done in February and March, but the direction is established at the retreat. Supporting Materials Committee charters and Governance Policy: Audit Committee Timeframe Is this urgent? NO Is this important? YES Is this time sensitive? Usually completed by March Executive Committee meeting


Retreat Notes – Topic 3 – Committee Review

1. Agreed this was an issue, composition of Committee and chairs needed for each Committee 2. Discussed if the Committee should exist including:

a. Does it have a chair? b. Is the charter still relevant? c. Task: Sunset, re-charter/confirm, and create new committees

Committees that need review:

- Coverage Review. Up to 4 EC members and up to 3 Board members. Committee members elect one of the EC members as chair. For continuity, Paul Shinners will remain chair until the Public Officials Liability (POL) policy is complete. Once POL policy work is completed, Geri Beardsley (Community Transit) will be the 2019 chair.

- Data Governance. Annual call for Board members, and Member staff appointed by their Board

representative; Board member is appointed chair. Discussion deferred until next EC meeting. Committees, with no changes, ok as is

- Audit. Consists of EC Committee Members; President is the chair. - Board Development. (4) Member Representatives; at Large Representative is the chair. - Emerging Risks and Opportunities. Annual call for committee Members. Danette Brannin

(Mason Transit) is the 2019 chair. - Governance Policy Committee. Consists of Board officers; President is the chair.

Time sensitivity: Usually completes by March Executive Committee Meeting

Urgent Not Urgent

Important Executive Committee

Less Important

- from 2018: Staff Benefits Page | 4-1

Task 4 - from 2018: Staff Benefits What question are we trying to answer? Should the WSTIP staff benefit package be changed? Background The 2018 Executive Committee posed questions about the staff benefit package, specifically paid time off and health insurance. Currently, the Pool contributes the cost of coverage as provided in the Washington State Uniform Medical Plan (UMP) for the employee and their eligible dependents. Employees may opt out of the WSTIP Health Benefit program and receive 50% of the UMP single subscriber rate as a taxable consideration for electing not to participate in the plan. Health Benefit funds are added to the employee’s paycheck once a month. WSTIP provides Paid General Leave as a benefit to employees to use as vacation or for absences due to an employee or eligible family member’s health concern. Hours of general leave accumulate beginning at 24 days per year for the first 10 years and progressing to 42 days for 20+ years of service. Issues • The Pool does a salary survey every three years. In the prior survey, many Pools were fully funding

employee’s health benefits. In the current survey, it was revealed that some pools have moved towards staff contributing to their health benefits.

• The salary survey also revealed an elevated benefit for general leave in the upper years of service (15-20 is 36 days and 20+ is 42 days). Should the general leave accumulation be reduced?

• In review and adoption of the Personnel Policies in early 2018, the Executive Committee expressed discomfort with the total amount of general leave (690 hours) that an employee is allowed to accumulate. General leave is carried as a liability on the books. Should this amount be reduced?

• Is there a financial benefit to changing the health insurance / leave policy? • How would changes impact employee recruitment and retention? • The new state-mandated Paid Family Leave law also may impact the staff benefit program.

Unfortunately, policy guidance is not yet available and may not be available until closer to the end of the year on how that program is to work with an agency’s own paid leave programs.

Who should do what when?


• Retreat attendees to answer, who should do what when, question. Why is this worth spending time on? Changes to the current Benefit package will require staff notification and impact budget development. Supporting Materials • 2018 Salary Survey

- from 2018: Staff Benefits Page | 4-2

Timeframe Is this urgent? No Is this important? Depending on budget impact Is this time sensitive? No

Retreat Notes – Task 4 – Staff Benefits Retreat participants agree it was an issue Discussed accumulations triangle, grandfather clause, carryover vs cash out, benefit to employee or WSTIP What is the impact on Recruitment + Retention? What is the premium share amount? What will the impact of paid FMLA be? Want to give plenty of notice to employees of potential changes. Time sensitivity depends on budgetary impact.

Urgent Not Urgent


Less Important

EC policy statements ↓

ED/Staff – Options ↓

Board Decision → EC Reconnect ↓

Board - decision

- from 2018 Strategic Plan: Board Engagement Goals Page | 5-1

Task 5 - from 2018 Strategic Plan: Board Engagement Goals What problem are we trying to solve? The 2018 Strategic Plan set a goal to improve board engagement in out-of-state training or joint programs with other stakeholders (WSTA, WSDOT) as measured by 60% participation annually. Should this goal be changed? Background This strategic priority was set when a joint leadership training program with WSTA was available every other year. This has been discontinued since WSTA took on the annual Public Transportation Conference. This goal was established in order to educate Board members on being Board members. The Board Development Committee generates a list of available Board education programs for participation each year. Issues We met this goal only once in the last three years and that was last year in 2018. The extra attendance was due to the Battlefield Leadership program. However, other out of state training programs alone have not generated 60% participation. It feels defeating to have a goal that is never reached. Is this a goal still worth reaching for? If so, is 60% still a good goal for participation? Who should do what when?


• Retreat attendees to answer, who should do what when, question. Why is this worth spending time on? Board engagement and board education is an ongoing effort by the Pool to ensure that Board members are prepared to make governance decisions regarding pool operations and feel prepared to make tough decisions on a regular basis. Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? Yes. Revisions to the Strategic Plan are usually completed by the end of March.

- from 2018 Strategic Plan: Board Engagement Goals Page | 5-2

Retreat Notes – Task 5 Board Engagement Goals Retreat participants agreed it was an issue. Questioned if 60% is the right number. What number would be more realistic? Discussed attendance and if the right programs are sponsored Discussed the Gettysburg Leadership Training and whether further support for non-pool leadership training should be regularly offered. Discussion for Board Development Committee and then EC and then Board. Survey monkey to members about training opportunities. Important but not essential topic. Time sensitivity: Revisions to the Strategic Plan are usually completed by the end of March.

Urgent Not Urgent

Important Less Important Board Development Committee

- from 2018 Strategic Plan: Loss Year 2015 Page | 6-1

Task 6 - from 2018 Strategic Plan: Loss Year 2015 What problem are we trying to solve? Should we do the data cleanup necessary to compare to 2015 or should we move the comparison year to 2016? Background A strategic priority of the Pool is that WSTIP desires to keep people and property safety. In keeping with that priority, WSTIP adopted three goals:

1. Reduce claims resulting from rear-end collisions, passenger injuries from hard braking, and improper mobility device securement by 6% by December 31, 2018 as compared to 2015.

2. By December 2022, have a minimum of a 50% reduction in claim frequency and severity of claims greater than $500K as compared to 2015.

3. Reduce bus pedestrian/cyclist strikes to “zero” annually. Issues The Board was aware of the necessary data clean-up that needed to be done in order to make these comparisons. We completed review and clean-up of 2018, 2017, and 2016 data by using a temporary employee working 20 hours per week for 8 months. The cost of this clean-up was approximately $23,000. Staff are aware that 2015 is messier than the other years and will take an additional effort in that besides temp time, a staff member will need to retrieve documents from our old document management system and load them into Origami in order for the work to be complete. If these costs and time do not seem to be of good value, an option is to move the comparison date from 2015 to 2016, and 2018 to 2019 or even as an annual review. The downside is that 2015 was a bad loss year and therefore it makes it a good year to compare to where 2016 was an improved loss year. Who should do what when?


• Retreat attendees to answer, who should do what when, question. Why is this worth spending time on? Staff are reluctant to proceed with more data cleanup without the Executive Committee aware of the ongoing effort and costs. Staff cannot change the strategic priority without Executive Committee buy-in. Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? Yes, impacts staff workplan for 2019


Retreat Notes – Task 6 – from 2018 Strategic Plan: Loss Year 2015 Retreat participants agreed that it is an issue. Recommendation is to not spend the money and change the loss year. However, the final decision has to be an EC decision since it is part of the Strategic Plan. Important, but not urgent. Time sensitivity: Impacts 2019 Staff workplan.

Urgent Not Urgent

Important Less Important Executive Committee

- Coverage Appeal Process Page | 7-1

Task 7 - Coverage Appeal Process What problem are we trying to solve? Does the current coverage appeal process provide adequate direction to the EC and the member-appellant regarding what should occur at the appeals hearing, how the EC should make its determination, and the respective role of each participant? Background The current process allows a member to appeal a decision by the Executive Director to accept tender of defense with reservation of rights, or a decision to deny the tender. The right to appeal is described in the WSTIP Bylaws, Article XII, Section 52, which states:

Section 52. Appeal to Executive Committee

A. A Member or other person feeling aggrieved by the decision of the executive director regarding a tender decision, may appeal that decision to the Executive Committee by filing notice thereof with the president and executive director. The notice shall specify the identity of the appellant, the decision from which the appeal is taken, and the reasons why the appellant believes the decision of the executive director was wrong. Such notice must be filed within thirty days following such decision.

B. The appeal shall be set for consideration at the next regular meeting of the Executive Committee or, in the discretion of the president, at the regular meeting following the next regular meeting.

C. Any Executive Committee member employed by the Member taking the appeal shall recuse herself or himself from the proceedings.

D. At the hearing before the Executive Committee, the appellant shall first present facts and argument followed by the executive director.

E. Following the hearing or any continuation thereof, the Executive Committee shall issue a written determination on the appeal.

Issues:

• Should the hearing be like an appellate court process, where each party has coverage counsel make legal arguments, or should the hearing be less adversarial, more of a discussion among members?

• If the EC prefers a more formal appellate court-like process, should there be specific procedural rules, such as time limits, order of presentation, opening statements, etc.

• If the EC prefers a less formal and less adversarial process, what does that process look like? What is the role of coverage counsel in a less formal process?

• Once the EC goes into executive session to decide the appeal, to what extent should the EC adhere to the coverage document and to what extent should it make its decision? based on WSTIP's best interest irrespective of the coverage document language?

• What should the role of the President, Executive Director and General Counsel be in the appeal process?

- Coverage Appeal Process Page | 7-2

Who should do what when? If the Retreat attendees believes the current process is enough, nothing needs to occur. If the Retreat attendees want to revisit the process, it should provide general guidance as to what it desires in an appeals process. After that the matter would be referred to the appropriate committee who would work with the Executive Director and General Counsel to make recommendations for changes that the EC could consider. Why is this worth spending time on? An appeal of a coverage decision is one of the few occasions when a member and WSTIP are averse to each other. Care must be taken to assure that the process is designed to assure a fair outcome and the relationship between WSTIP and the member, and the members with each other, is preserved irrespective of the outcome of the appeal. A process that is not defined well can result in inconsistency that may be viewed as subjective or arbitrary. Timeframe Is this urgent? No. Is this important? Review of the process is important even if no changes are made. Is this time sensitive? Moderately. Retreat Notes – Topic 7 – Coverage Appeal Process Agreed that it was an issue. What are the roles of the President, Legal Counsel, Coverage Counsel (for each side) Need to spell out process more clearly Make sure process can withstand an adversarial situation Should also discuss whether EC has always followed the coverage document/provide guidance Discuss at future EC with background from Staff Importance: Review of the process is important even if no changes are made.

Urgent Not Urgent

Important Executive Committee Less Important

- from 2018: Law Enforcement and Security Liability Risks Page | 8-1

Task 8 - from 2018: Law Enforcement and Security Liability Risks What problem are we trying to solve? Determine what the Pool’s exposure is with law enforcement and security personnel at member transit agencies. We have had minimal claim activity for this type of liability but should assess the risk especially with the societal uptick in and around this topic. Background Historically, this type of liability has been included in the General Liability coverage document. However, during the development of the Public Officials Liability Coverage document, the Coverage Review Committee decided to move it to the Public Officials Liability document. This move brought up the conversation regarding what risk WSTIP was covering under whichever agreement. Staff started doing a research project to answer the question of the extent of the risk. Twelve of the 25 members employ or contract out some type of security for their agency. Most agencies transfer the risk to a contractor usually a local law enforcement agency or a security firm. There are a few members that have security in-house including more typical law enforcement activities. Those members that have in-house personnel may pose a greater risk for law enforcement claims such as excessive force, false arrest, and assault. Issues What is the appetite for risk for the membership to law enforcement and security risks? Are we collecting enough money to cover the claims associated with this type of risk? Should this risk live in the general liability or the public officials liability coverage document? Resource materials: Retreat attendees should review the law enforcement status matrix and ultimately take a closer look at the public official’s liability coverage document to review what the total risk entails. Attendees should consider deciding where this risk should reside and if more oversight and/or additional coverage should be purchased. Questions to be answered:

1. Does the Pool realize and comfortable with covering this type of risk? 2. If not, do you want to exclude this type of coverage entirely?

Who Should Do What When?


• Retreat attendees to answer, who should do what when, question. Why is this worth spending time on? This is a risk appetite issue. In the unfortunate event that a claim occurs, it exposes the Pool membership to one of these high profile and expensive claims. The Pool could transfer this risk to another carrier to carry the burden of that cost. If not, and the Pool must absorb this loss into employment practices under the liability coverage (where-ever it ultimately lands) then the upwards trend in this coverage will increase. This type of loss is not usually considered a part of transit’s business,

- from 2018: Law Enforcement and Security Liability Risks Page | 8-2

although we are aware of other transit agencies across the country that do operate their own security or law enforcement services. Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? Maybe, depending on finding coverage and where the risk is placed in which coverage document. Retreat Notes – Task 8 – Law Enforcement and Security Liability Risks Agreed it was a problem. Don’t have a structure to really deal with it. We could stay the course, have them get their own coverage, or charge a premium. Low frequency but potential high risk. Create a new committee – underwriting committee to deal with this topic and make a recommendation to the EC and then the Board. Time sensitivity: Review when pricing next policy.

Urgent

Not

Urgent


Less Important

- from 2018: Limited Mode Service Provider Contracts/Contractual Risks Page | 9-1

Task 9 - from 2018: Limited Mode Service Provider Contracts/Contractual Risks From 2018: Limited Mode Service Provider Contracts/Contractual Risks

What problem are we trying to solve? The template for all Limited Mode Service Provider agreements expire at the end of 2019. New contract language needs to be put into place. Is there a continued tolerance for aggregating risks of other agencies into the Pool? Background Limited mode service provider contracts have been around since 2008. These contracts allow the agency to take the auto liability risk from a partner service provider with program and/or contract pre-approval by the Pool. Template contracts are approved based on member needs and negotiated agreements must be on file. Full modal service providers are contractors assuming your full mode of service, such as paratransit services. Members must meet four requirements before WSTIP may provide coverage for a service provider. These requirements are:

1-2. The relationship between the member and the service provider must be established with a written contract and the contract must contain a hold harmless agreement.

3. The contract must limit coverage to the operations and services provided under the contract.

4. The contract must meet WSTIP’s underwriting standards. Limited-mode service providers are contractors providing specialized services, such as a contract with a social service agency to provide paratransit eligible rides to their clients or assigning a vehicle to a particular service area or route to provide either fixed route or on demand type services, usually while the agency retains a portion of the service. This definition includes the subcategory of Community Van Programs. Community Van Programs are deemed to be community ride-sharing services utilized on an intermittent, when needed timeframe. The vehicle is located with the transit agency and “checked out” when needed. If the service provider relationship is not established as above, the driver of the transit agency, if not an employee or other covered party in the coverage document, has limited coverage extended by the “permissive user” provision of the coverage agreement. The coverage document also allows for “permissive users.” The permissive user clause allows

For motor vehicle coverage only, any person driving a motor vehicle owned by a member with permission of the member for which the Pool provides coverage, provided: a. Any such permissive user has a valid driver’s license; b. The permissive user is at least 21 years of age;


c. The coverage provided to the permissive user is excess to any other coverage in favor of the permissive users;

d. The limits of coverage to the permissive user are $300,000 for bodily injury and $100,000 for property damage; and

e. The permissive user may not provide permission to any other person to drive the motor vehicle.

WSTIP defined the following underwriting standards: The member must determine if the service provider is a viable contractor for them. This means they should be reviewing the financial capacity of the service provider. We do not require the service provider to have insurance.

• WSTIP has concerns regarding disliking certain agencies being service providers. For example, schools, school districts, community colleges, and universities. Anyone transporting to and from school-based activities.

• WSTIP recommends less than 15 passenger vans be used in these programs. • WSTIP will extend auto liability coverage $1 million each occurrence, with a $2 million

aggregate to the limited-mode service provider. If the member purchases underinsured motorist coverage on the assigned mode, this coverage will extend as well. Contract language must clearly state what coverage is provided to the service provider.

• Members may not extend general liability coverage, public officials liability coverage, or vanpool driver medical expense coverage to a limited-mode service provider.

• Members typically carry the auto physical damage on the vehicle. Loss Prevention Measures Staff work with each member/program to ensure the loss prevention measures are adequate for the type of service being provided. Issues

• One of the assumptions in the original formation of this program is that the non-profit or social service entity was not able to take on their own liability risks. Yet some of these agreements have been in place over multiple three-year cycles or social service agencies are public agencies. There seems to be a level of discomfort in the membership to ask agencies about the agency’s ability to take on their own auto liability risks. Therefore, some of these contracts, which accept the risk, could be transferred to other party. We have also found once these contracts are in place, there is no incentive for the service provider to get insurance.

• There is a “feeling” that members are looking for something else to do with their spare vans or vans not currently being utilized by vanpool programs. So new programs crop up. Sometimes we don’t hear about potential programs until after they have gone to an agency’s Board.

• When this template contract was originally written it says it gives coverage to the service provider organization and jointly to the driver. Miles are reported within the mode specified by the member and claims have to be tracked there. We were originally going to create a new mode for such programs so that the experience could be tracked there. That did not happen back when these contracts were put into place so we are not able to report on experience.


• In hindsight, WSTIP perhaps should not have used the wording it did in the contracts. It is creating a relationship with the service providers that is “member-like,” but that agency has no right to govern WSTIP or appeal any decision of WSTIP.

Who should do what when?


• Retreat attendees to answer, who should do what when, question. Why is this worth spending time on? This is a risk appetite issue. This area of risk is growing and even though the loss experience has been small, it is foreseeable that losses could occur. Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? Yes, contracts expire at year end. A new template agreement needs to be ready by October or if changes are going to be made, adequate time needs to be given to the members and their service providers, more like by the end of September. Retreat Notes – Task 9 – Limited Mode Service Provider Contracts Retreat participants agreed that it is an issue.

1. Can we transfer risk to the contractors? 2. What are the requirements for driving? Driving record checks? Defensive driving training?

Time sensitivity: Contracts expire at year end. A new template agreement needs to be ready by October or, if changes are being made, adequate time needs to be given to the Members and their service providers by the end of September.

Urgent

Not

Urgent


Less Important

- from 2018: Driver Record Monitoring Program Page | 10-1

Task 10 - from 2018: Driver Record Monitoring Program What problem are we trying to solve? What needs to be done if the DOL contract terms for Driver Record Monitoring (DRM) change significantly? Background Historically members obtained full driving abstracts annually from the Department of Licensing (DOL) in order to check for licensing status changes and traffic infractions. In 2009 WSTIP contracted with DOL to participate in a then-new service allowing subscribers to monitor driver records monthly for any changes during the prior month. Members were then able to receive more timely notification of changes, in addition to cost savings. A copy of a driver’s full record currently costs $13 whereas monthly monitoring is .06 per monitored license. The original contract with DOL was signed in August 2009. An extension was signed June of 2011 extending the contract until 2015, and an addition extension was signed March 2015 extending the original contract until June 30, 2020. In July of 2018 DOL contacted WSTIP for the purpose of signing a new contract replacing the original 2009 contract. Many things have changed since 2009 including access, security and auditing requirements to receive DOL data. Acceptance of the DOL contract as written would preclude us from offering the service to non-member public entities; remove vanpool as a class of drivers eligible for monitoring; establish several new audit requirements for both WSTIP and Members; and add the requirement to obtain signed releases from all monitored drivers. After several changes were negotiated, DOL informed us that no further changes to the contract would be considered. On October 14, WSTIP requested resolution intervention through the Governor’s review process. On October 23rd DOL agreed to a meeting attended by DOL counsel, Executive Director Tracey Christianson, General Counsel Rick Hughes, and Administrative Services Manager Andrea Powell. DOL sited RCW 46.52.130 as the basis of their decision and there was little progress made on the core issues. DOL informed WSTIP that in the absence of a legislative fix, they were unable to modify the contract further. This was especially disappointing regarding Vanpool drivers as this was the primary reason WSTIP began monthly monitoring which became WSTIP’s first mandatory best practice. WSTIP subsequently received notice from DOL stating in the absence of a signed contract, access will be terminated June 30, 2019. The proposed language is already in the RCW, but not included WSTIP’s class of drivers. Michael Shaw was engaged to lobby for adding the enabling language to RCW 46.52.130 allowing WSTIP to continue providing monitoring services. The legislation has been drafted and we are hoping it is picked up in the 2019 legislative session.


Issues If a contract is not signed by June 30, 2019, DOL will terminate WSTIP’s access to monthly driver license monitoring unless it accepts the contract as is. This means in absence of legislative changes: • WSTIP must discontinue offering monitoring services to non-Member public entities • Vanpool drivers can no longer be monitored requiring changes to the Governance Policy: Member

Driver Record Monitoring Policy and significant changes to member vanpool operations • Members will be required to obtain signed releases from all employees in order to continue with the

monitoring program With or without a legislative fix, there will be additional auditing and reporting requirements for both WSTIP and Members. These are not trivial requirements and will increase WSTIP Staff and member time dedicated to these tasks. Who should do what when? • The Board should discuss an action plan should the legislative fix fail to be passed during the 2019

legislative session. • Impacts of the new audit and reporting requirements on both Staff and Members should be assessed. Why is this worth spending time on? If the legislative fix does not pass this session, signing the DOL contract will result in significant changes to the driver record monitoring program that will affect Member’s operations. The alternative is terminating the driver record monitoring service. . Supporting Materials • RCW with proposed changes • Termination letter from DOL • SRMO approval of the program • Governance Policy: Member Driver Recording Monitoring Policy

Timeframe Is this urgent? Yes Is this important? Yes Is this time sensitive? Yes


Retreat Notes – Task 10 – Driver Record Monitoring Program Retreat participants agree that this is a pressing problem. A lot depends on the Legislature. What are the issues if we can’t get information? Legislative bill HB 1295 addresses the needed changes. WSTA is partnering with their Member’s lobbyists to move this forward. Possible outcomes are:

- Legislation passes and resolves the issues. - All employees are required to sign waivers; and/or - WSTIP can no longer contract via Interlocal agreement with non-Members; and/or - Vanpool drivers can no longer be monitored monthly.

Before April, the Executive Committee should:

- develop options in the event of a negative outcome; - send out communication to Membership - Stay engaged with repercussions (service changes / liability / cost / etc.)

Staff Research:

- What does King Co. Metro do? - Are there commercial monitoring services available?

Urgent

Not

Urgent


Less Important

- from 2018: Broker: to RFP or not RFP Page | 11-1

Task 11 - from 2018: Broker: to RFP or not RFP What problem are we trying to solve? The contract with our broker was extended in 2018 to cover 2019 and could be extended again this year to cover 2020. Background Running an RFP broker services is a considerable project. Staff have always considered the selection of the broker to be a joint decision by staff and the Board/Executive Committee. Our current Purchasing Policy calls for a competitive recruitment every 10 years. In particular, the timing of an RFP has to be just right meaning you want the change (assuming there is one) to take effect sometime prior to renewal. However, for us, we have two renewals: July 1 for property and January 1 for liability. This makes it doubly difficult to time an RFP. Issues Should we extend our contract later this year and go into 2020? Can we extend our contract even longer? According to legal counsel, we could extend our agreement for the additional five years (for the total of 10 years) because our purchasing policy allows it. Who should do what when?


• Retreat attendees to answer, Who should do what when, question. Why is this worth spending time on? The broker is a critical partner for a Pool. Brokers give you access to the insurance market and services. They are the eyes and ears of the insurance marketplace. Brokers also provide services to the Pools and individually to members. This means if we change brokers that change also affects individual members (such as Pierce Transit / Alliant places excess workers compensation for them). Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? Yes

- from 2018: Broker: to RFP or not RFP Page | 11-2

Retreat Notes – Task 11 – Broker RFP or Not RFP Retreat participants agreed that a decision needs to be made.

- Executive Director has the authority to extend the existing contract through 2020. - The RCWs and WACs are silent on how frequently Pools need to go out for RFP. The State Risk

Manager advised that it was not unusual for a Pool to do a new RFP at 10 years. - Is 10 year the right number, and if not when?

What does the contract look like? Review terms (escalators escape clause) Decision Tree Staff ↓ EC (options & recommend) ↓ Board (Tracey will follow-up?) Time sensitivity: If a new RFP is needed, staff will need pricing from a new contract for 2020 Budget (September 2019)

Urgent Not Urgent

Important Executive Director Less Important

– New Issue - Vanpool Programs Allowing Personal Use of Vanpools Page | 12-1

Task 12 – New Issue - Vanpool Programs Allowing Personal Use of Vanpools What problem are we trying to solve? Should vanpool programs allow their volunteer drivers to use a vanpool vehicle for personal use over a certain number of miles that are not companion to their commute? Coverage under the general liability document would extend coverage as it stands. Background Some vanpool programs allow volunteer vanpool drivers to use the vehicle for their own personal use. There is an allotted number of miles per month, once those miles are used, vanpool programs charge a per mile fee. Issues Vanpool Coordinators have a statewide strategic plan to get vehicles on the road. Incentives are given to get people in the van. Some incentives include using the van for personal use. What happens when an event occurs with the vehicle that doesn’t have to do with a vanpool commute and there is no coverage from the driver and there are fault free passengers? Community, Intercity, Pierce, and Spokane have a personal use agreement where they charge or give personal miles for use. All members should discuss the risks involved and what measures are put in place to cover those risks because all members are sharing risk with each other. Who should do what when?


• Retreat attendees to answer, who should do what when, question. Why is this worth spending time on? This is a risk appetite issue. Pool members should understand sharing risk with volunteer drivers and the capacity to oversee and mitigate personal use behaviors. The coverage follows the vehicles so making sure the general liability coverage states what is covered or not covered in these gray areas would be helpful. Even if a volunteer driver had primary insurance (and it responded), it likely would not be beyond the legal requirements for personal vehicles still leaving the member’s entire limits exposed. Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? No

– New Issue - Vanpool Programs Allowing Personal Use of Vanpools Page | 12-2

Retreat Notes – Task 12 – Vanpool Programs Allowing Personal Use of Vanpools Retreat participants agree that there is an issue. Different agencies have different policies Agree there is a benefit or incentive for the driver. Discussed the risks Discussed whether individual programs should be able to make their own policies Should there be a premium for personal use? They’re on their own get their own coverage Status quo Premium miles for personal use Decision Tree Underwriting Committee to make recommendation ↓ EC to make recommendation ↓ Board to decide.

Urgent

Not

Urgent


Less Important

New Issue – Expanding or Retracting Coverage Page | 13-1

Task 13 New Issue – Expanding or Retracting Coverage What problem are we trying to solve? If members are interested in expanding or retracting coverage there is not really any process for these thoughts to be brought forward. Background The Coverage Review Committee was formed to work on clarifying, refining and editing the coverage documents. Their work started with the public officials liability document. During this work, an interest appeared to add coverage for defense of public records and open public meetings violations. As coverage work continues, it is likely that other such interest will arise. How should this be handled? Issues

• Coverage is a Board decision. If there is a desire to expand coverage in any area, what process should be used for vetting such an idea?

• Is there a philosophy that such decisions should cover such as: limits of liability and pricing? Who should do what when?


• Retreat attendees to answer, who should do what when, question. Why is this worth spending time on? This is a risk appetite issue as well as a process issue. Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? Yes, coverage documents are usually adopted at the end of the year for inception the next year.

New Issue – Expanding or Retracting Coverage Page | 13-2

Retreat Notes – Task 13 – Expanding or Retracting Coverage Retreat participants did not agree there was a problem. Did not agree there was a problem! Already a process in place to funnel requests to EC via President. Decision Tree Member to President ↓ President ↓ EC → no – end ↓ Yes ↓ Pursue Perhaps add topic to a Behind the Curtain issue

Urgent Not Urgent

Important

Less Important No action needed

Urgent Not Urgent

Important Task 3: Committee Review (form underwriting committee)

Task 10 : Driver Record Monitoring

Underwriting Committee Tasks: Task 1 : Long Range Strategic Vision (SIR)

Task 8 : Law Enforcement Liability

Task 9: Limited Mode Service Provider Contracts

Task 12: Vanpool Personal Use

Task4: Staff Benefits

Task 7: Coverage Appeal Process

Task 11: Broker RFP

Less Important Task 2: Strategic Target Ratios (work complete)

Task 5: Board Engagement Goals

Task 6: Loss Year 2015

Task 13 : Coverage Expansion – No action needed

LEGAL MEMORANDUM

TO: TRACEY CHRISTIANSON, EXECUTIVE DIRECTOR

FROM: RICK HUGHES, GENERAL COUNSEL

SUBJECT: PROCESS TO FILL MEMBER VACANCY ON WSTIP EXECUTIVE COMMITTEE

DATE: FEBRUARY 15, 2019

CC: STACI JORDAN, PRESIDENT

Background: The small member representative to the Executive Committee (EC) recently separated from his employer, creating a vacancy. You asked how the vacancy should be filled.

Answer: The WSTIP Board is required to fill this vacancy at a regular meeting “as soon as practicable”. The Board member so appointed will fill the remainder of the term of the predecessor. A special Board meeting would not be called to fill this position.

Vacancies in Member Representative positions must be filled by a Member Representative from the same size category as the departed Member Representative, in this case by a small Member. (This is different than the annual Member Representative election to the EC where if no Member of a particular size category is willing to serve, the position becomes open to any other Member Representative.)

This means that the EC will have a Member Representative vacancy until the next regular Board meeting, at which time things should return to normal. Although the Member Representative position to the EC cannot be filled until the next regular Board meeting, the small Member in question may appoint a replacement to the Board immediately and one of its alternates would serve in the meantime.

Authority: WSTIP Bylaws, Section 19 (Composition) and Section 23 (Vacancies).

/rh

February 28, 2019 TO: WSTIP Executive Committee FROM: Andrea Powell, Administrative Services Manager SUBJECT: RMIS* Data Governance Committee *Risk Management Information System FOR DISCUSSION / with Possible Action Possible Action Staff ask for a discussion of the RMIS Data Governance Committee. Staff recommend the RMIS Data Governance Committee charter be updated. Background This was part of Retreat Task 3. In 2017 the Executive Committee established a RMIS Data Governance Committee for the purpose of developing and recommending best practices for data collection in Origami. The goal is to improve the quality and consistency of the WSTIP data set to inform the best possible risk management decisions. Early efforts included:

· Discussions regarding data import from Risk Master; · More clearly defining data collection boundaries for WSTIP and member information; · Developing standard language for event types incorporating NTD terminology; · Updating form design to make them more user friendly; · Creating custom fields to reflect Members’ internal reporting requirements; · Pilot projects with Pierce Transit and Community Transit testing data integration with the

Member’s internal systems (automatic import/export from Member to WSTIP). · Creating mail-merge templates for Member use; · Identifying fields needed for meaningful analytics, populating with Risk Master data where

possible, and communicating to Members those data entry requirements going forward. In 2018 the Committee had challenges keeping momentum. The Chair and two key participants left to pursue other career opportunities and there was a limitation on staff resources. With the 2019 budget, the Board approved a new position for Origami support. The immediate focus of this position will be working with Members to identify issues requiring changes to the underlying data or changes to data entry forms and standard reports. As these issues arise, they will be brought to the Committee for discussion and recommendation. Staff now believe that an ad-hoc (as needed) committee will best serve this purpose.

Staff requests discussion, with possible action, on the RMIS Data Governance Committee charter attached. Specifically, the charter changes include: · Committee will be an ad-hoc rather than standing committee; · Committee will meet as specific issues affecting all Members are identified, no less than annually. · Committee Chair will be appointed by the Board · Committee will report to the Executive Committee when recommendations are ready for

endorsement. /ap Attachments:

· RMIS Data Governance proposed charter

Committee Charter

RMIS Data Governance Committee

Purpose of the Committee The purpose of this Committee is to provide, develop and recommend best practices for data collection in the Origami risk management information system (RMIS). The goal is to improve the quality and consistency of the WSTIP data set to inform the best possible Risk Management decisions. This includes:

• Developing a common language. (i.e., what does "Preventable” mean?) • Developing minimum and recommended standards for data collection by Members. • Developing and documenting consistent data collection processes and requirements. • Communicating with Members so that everyone has a consistent message and clear guidelines for data

entry. • Providing guidance to individual Members in incorporating Origami data into their internal business

processes. • Identifying metrics and data collection requirements to track strategic goals set by the Board • Ensuring data collection, security, and retention policies are consistent with best practices for public

records and published retention schedules. Boundaries This shall be an ad-hoc standing committee.

• Committee Chair will be a Board Member appointed to the position. Committee Members will include Members’ employees as non-Board member representatives as appointed by the agency’s Board member and; WSTIP Staff.; and a representative from the Board membership. Committee membership will be reviewed annually.

Chair will be elected by the Committee annually. • Committee will act as a liaison to non-Board Member employees directly responsible for collecting or

utilizing RMIS data. Operating Principles

• Working group will meet monthly, or as necessary At least one meeting per quarter will include a virtual meeting and interested member employees encouraged to participate. Recommendations will be presented to the group at these meetings for discussions.

• Committee will report to the full Board on an annual basis, or as recommendations are finalized. on a Quarterly basis.

• An aAnnual report to the WSTIP Board will present the work and recommendations of the Committee for final adoption endorsement by the Board.

• Recommendations made by the RMIS Data Governance Committee, with the support of the WSTIP Executive Committee, shall be adopted as the best practice for data entry in the WSTIP RMIS system, Origami.

Authorization: The Executive Committee authorizes this committee and the committee shall report to the Executive Committee. Charter Date: 2019-02-18

Committee Charter RMIS Data Governance Committee

Purpose of the Committee The purpose of this Committee is to develop and recommend best practices for data collection in the Origami risk management information system (RMIS). The goal is to improve the quality and consistency of the WSTIP data set to inform the best possible Risk Management decisions. This includes:

• Developing a common language. (i.e., what does "Preventable” mean?)• Developing minimum and recommended standards for data collection by Members.• Developing and documenting consistent data collection processes and requirements.• Communicating with Members so that everyone has a consistent message and clear guidelines for data

entry.• Providing guidance to individual Members in incorporating Origami data into their internal business

processes.• Identifying metrics and data collection requirements to track strategic goals set by the Board• Ensuring data collection, security, and retention policies are consistent with best practices for public

records and published retention schedules.

Boundaries This shall be an ad-hoc committee.

• Committee Chair will be a Board Member appointed to the position. Committee Members will includeMembers’ employees as appointed by the agency’s Board member and WSTIP Staff. Committeemembership will be reviewed annually.

• Committee will act as a liaison to Member employees directly responsible for collecting or utilizing RMISdata.

Operating Principles • Working group will meet as necessary• Committee will report to the full Board on an annual basis, or as recommendations are finalized.• An annual report to the WSTIP Board will present the work and recommendations of the Committee for

final endorsement by the Board.• Recommendations made by the RMIS Data Governance Committee, with the support of the WSTIP

Executive Committee, shall be adopted as the best practice for data entry in the WSTIP RMIS system,Origami.

Authorization The Executive Committee authorizes this committee and the committee shall report to the Executive Committee.

Charter Date: 2019-02-18

February 28, 2019 TO: WSTIP Executive Committee FROM: Andrea Powell, Administrative Services Manager SUBJECT: Ratios / Ratio Subcommittee Recommendation Action Requested Staff are asking for the Board to accept the updated Strategic Target Financial Ratios Policy and targets, as recommended by the Executive Committee, to be advanced to the full Board at the March quarterly Board meeting. Background The Strategic Target Financial Ratios policy was adopted as part of the 2008 strategic plan. In 2018 the Audit Committee appointed a ratios sub-committee to review and update these ratios. This was a topic of discussion at the January 2019 Retreat. These ratios, in conjunction with the Capital Funding Study, provide metrics to assess WSTIP’s financial performance and health. Kevin Wick from PriceWaterhouseCoopers (PWC) worked with the ratios subcommittee to develop these ratios and targets. Six financial ratios have been identified and preliminary targets have been proposed. The Strategic Target Financial Ratios Policy (renamed the Target Ratios Policy) has been updated with these new targets and is ready for review by the Executive Committee. This policy requires Board approval. Explanation of these ratios and proposed targets are attached to the policy as Addendum 1. Action Requested Staff are requesting approval from the Executive Committee to advance the updated policy to the Board with a recommendation to pass. /ap Enclosures:

· Target Ratios Policy · Addendum 1 · January 17, 2019 materials from the Retreat

Strategic Target Financial Ratios Policy Target Ratios Policy Governance Section: Finance

Revision Date: TBD 2019 Page: 1 of 2

Purpose In order to einsure that the Pool remains financially strong it is necessary to annually evaluate and compare financial performance for the past prior five ten years for which audited financials are available with current financial performance. This policy adopts target financial ratios and provides for an annual comparative study of these ratios. Authority

1. Interlocal Agreement, Sections 3 (“all things necessary and proper for the establishment of self-insurance programs) and 4 (“adopt an annual budget”); and

2. Bylaws, Section 4b (“adoption of annual budget”).

Policy Statement 1. Financial ratios. The Pool shall strive to maintain the following financial ratios:

Solvency Ratios 1.1 Change in Net Position Greater than 3% 1.2 Net Incurred Losses ratio Less than 70% 1.3 Operating Ratio Less than 95%

Operational Ratios 1.4 1-year reserve Development

Less than 20%

1.5 Retention Leverage Greater than 10 1.6 Expense Ratio 25%

2. Annual report. By September of each year, and for use in the annual budget development

process, the Pool’s Eexecutive dDirector shall provide the Board with a report of the financial ratios set forth above for a running six ten year period. The six-year period shall be for the current year and for five years prior to the current year.

3.2. 4. Collection of information In order to calculate the ratios the executive director shall collect from

all Pool members and Pool members shall provide for each year in the ratio analysis actual or estimated:

a. Vehicle miles for all modes; b. Number of vehicles and their values; c. Property values; and d. Number of employees.

5.3. Variance from ratios. In the event any of the actual values are at variance from target values set

forth in 1a-c, the Eexecutive Ddirector shall provide the Executive Committee with an action plan which, if implemented, will bring the ratio within the target value. The action plan shall include a timetable for implementation. The Executive Committee shall consider the eExecutive dDirector’s action plan and, after making whatever changes it deems appropriate, shall forward it to the Board for consideration.

6.4. The Pool shall may engage an actuary or external accountant to assist in the computation of these ratios.

Commented [AP1]: Current year financials would not be a true comparison as budget numbers would be for all of 2019, whereas loss data would be as of August 31.

Commented [AP2]: Renaming to avoid confusion with the Financial Target Policy

Commented [AP3]: Addressed as part of the Assessment Allocation Policy – not needed for ratios.

Strategic Target Financial Ratios Policy Target Ratios Policy Governance Section: Finance

Revision Date: TBD 2019 Page: 2 of 2

Amendment The Pool’s Board may amend this policy. Policy History The groundwork for this policy was developed as part of the Pool’s 2008 six -year strategic plan. Passed by the Board of Directors June 24, 2016. Amended by the Board of Directors March 29, 2019 Staci Jordan, President

Attest: Danette Brannin, Secretary

Approved as to form: Richard Hughes, General Counsel

Target Ratios Policy - Addendum 1 This addendum gives descriptions and targets included in the March 2019 Target Ratios Policy. Note:

1) Net Incurred Losses are net of recovery 2) Net Contribution are net of reinsurance costs

Solvency Ratios

1. Retention Leverage

What this Ratio Measures: WSTIP’s net position compared to the Pool’s current self-insured retention (SIR). AGRIP’s recommendation is greater than 10. Lower retention leverage may indicate the need for additional capital. Target: Greater than 10.

2. One Year Reserve Development Ratio

What this Ratio Measures: Development of prior year booked reserves as a percentage of net position. Target: Less than 20%

3. Change in Net Position What this Ratio Measures: How much is WSTP’s net position increasing or decreasing? Target: Greater than 3%, however future funding strategies may require a greater percentage.

Operational Ratios 4. Net Incurred Loss Ratio

What this Ratio Measures: Net incurred losses as a percentage of net contribution. Helpful for trending and benchmarking. Target: Less than 70%

5. Operating Ratio What this Ratio Measures: Percentage of Member Contributions that are allocated for net incurred losses and Pool’s operating costs net of investment income. Do our losses & operating costs (net of interest revenue) exceed the pool’s net contribution? If the operating ratio is less than 100%, then WSTIP’s net position will increase. Target: Less than 95%

6. Expense Ratio

What this Ratio Measures: A general reasonableness check of administrative expenses relative to gross contributions. An excessively small percentage could indicate support services are insufficient to adequately prevent or control losses. Conversely, a large percentage could indicate that administrative expenses may be larger than what a pool might expect relative to its gross contributions.

Target: Less than 25%, may be higher to accommodate special projects or programs.

DATE: January 17, 2019 FROM: Ratio sub-committee SUBJECT: Strategic Target Financial Ratios

The Ratio Policy sub-committee has identified six financial ratios to be included in the Strategic Target Financial Ratios Policy. These are preliminary targets, subject to review by the Audit Committee. This may be a topic of interest for the March work session. If approved by the Audit Committee, these ratios will be included in an updated Strategic Target Financial Ratios policy. On approval of the policy by the Audit Committee, the policy will advance to the Governance policy committee and then to the full Board for approval. These ratios, in conjunction with the Capital Funding Study, provide metrics to assess WSTIP’s financial performance and health. Solvency Ratios

1. Retention Leverage

What this Ratio Measures: WSTIP’s net position compared to the Pool’s current self-insured retention (SIR). AGRIP’s recommendation is greater than 10. Lower retention leverage may indicate the need for additional capital. Target: Greater than 10.

2. One Year Reserve Development Ratio

What this Ratio Measures: Development of prior year booked reserves as a percentage of net position. Target: Less than 20%

3. Change in Net Position What this Ratio Measures: How much is WSTP’s net position increasing or decreasing? Target: Greater than 3%, however future funding strategies may require a greater percentage.

Operational Ratios 4. Net Incurred Loss Ratio

What this Ratio Measures: Net incurred losses as a percentage of net contribution. Helpful for trending and benchmarking. Target: Less than 70%

5. Operating Ratio What this Ratio Measures: Percentage of Member Contributions that are allocated for net incurred losses and Pool’s operating costs net of investment income. Do our losses & operating costs (net of interest revenue) exceed the pool’s net contribution? If the operating ratio is less than 100%, then WSTIP’s net position will increase. Target: Less than 95%

6. Expense Ratio


Target: Less than 25%, may be higher to accommodate special projects or programs.

Note:

1) Net Incurred Losses are net of recovery 2) Net Contribution are net of reinsurance costs

/ap

Retention Leverage [Net Position] / [Current Retention]

Year Net Position Pool Retention

Retention Leverage

2017 $22,697,507 $2,500,000 9.08 2016 $22,413,128 $2,000,000 11.21 2015 $20,016,587 $2,000,000 10.01 2014 $19,648,505 $1,000,000 19.65 2013 $20,496,318 $1,000,000 20.50 2012 $20,210,775 $1,000,000 20.21 2011 $18,964,962 $1,000,000 18.96 2010 $16,330,696 $1,000,000 16.33 2009 $15,518,442 $1,000,000 15.52 2008 $15,482,943 $1,000,000 15.48

Solvency Ratio

Target: Greater than 10

What this Ratio Measures: WSTIP’s net position compared to the Pool’s current self-insured retention (SIR). AGRIP’s recommendation is greater than 10. Lower retention leverage may indicate the need for additional capital.

One Year Reserve Development Ratio [1 Year Reserve Development] / [Net Position ]

Year 1 Year Reserve Development Net Position

2017 $1,172,261 $22,697,507 5.165% 2016 $2,474,250 $22,413,128 11.039% 2015 $653,237 $20,016,587 3.263% 2014 ($97,956) $19,648,505 -0.499% 2013 $643,659 $20,496,318 3.140% 2012 $1,036,270 $20,210,775 5.127% 2011 ($1,170,737) $18,964,962 -6.173% 2010 $134,518 $16,330,696 0.824% 2009 $610,233 $15,518,442 3.932% 2008 ($939,384) $15,482,943 -6.067%

Solvency Ratio

Target : Less than 20%

What this Ratio Measures: Development of prior year booked reserves as a percentage of net position.

Change in net position [Current Net Position] / [Prior Net Position]

Year Current Net

Position Prior Net Position

% Change in Net Position

$ Change in Net Position

2017 $22,697,507 $22,413,128 1.27% $284,379 2016 $22,413,128 $20,016,587 11.97% $2,396,541 2015 $20,016,587 $19,648,505 1.87% $368,082 2014 $19,648,505 $20,496,318 -4.14% ($847,813) 2013 $20,496,318 $20,210,775 1.41% $285,543 2012 $20,210,775 $18,964,962 6.57% $1,245,813 2011 $18,964,962 $16,330,696 16.13% $2,634,266 2010 $16,330,696 $15,518,442 5.23% $812,254 2009 $15,518,442 $15,482,943 0.23% $35,499 2008 $15,482,943 $14,579,244 6.20% $903,699 2007 $14,579,244 $0

Solvency Ratio

Target : Greater than 3%

What this Ratio Measures: How much is WSTP’s net position increasing or decreasing?

Net Incurred Loss Ratio [Net Incurred Loss] / [Net Contributions]

Net Incurred

Loss Net

Contribution Loss Ratio

2017 $9,928,067 $12,111,995 81.97% 2016 $5,850,875 $10,756,381 54.39% 2015 $6,854,690 $10,245,685 66.90% 2014 $7,583,449 $9,363,819 80.99% 2013 $6,766,651 $9,059,335 74.69% 2012 $5,851,543 $8,758,970 66.81% 2011 $7,344,828 $9,106,802 80.65% 2010 $6,720,394 $8,564,079 78.47% 2009 $5,811,531 $6,587,761 88.22% 2008 $4,525,162 $6,236,608 72.56%

Operational Ratio


What this Ratio Measures: Net incurred losses as a percentage of net contribution. Helpful for trending and benchmarking.

Operating Ratio ( [Net Incurred Loss] + [Expenses] - [Investment Earnings] ) / [Net Contributions]

Year Incurred Losses Expenses Investment

Earnings Net Contribution Operating Ratio 2017 $9,928,067 $3,107,148 $563,655 $12,111,995 102.969% 2016 $5,850,875 $3,181,020 $425,210 $10,756,381 80.015% 2015 $6,854,690 $3,036,853 -$204,282 $10,245,685 98.537% 2014 $7,583,449 $2,540,836 $214,467 $9,363,819 105.831% 2013 $6,766,651 $2,437,575 $213,399 $9,059,335 99.244% 2012 $5,851,543 $2,223,069 $269,900 $8,758,970 89.105% 2011 $7,344,828 $2,271,884 $424,570 $9,106,802 100.937% 2010 $6,720,394 $2,111,068 $570,642 $8,564,079 96.459% 2009 $5,811,531 $1,897,246 $1,019,020 $6,587,761 101.548% 2008 $4,525,162 $2,136,309 $1,056,634 $6,236,608 89.870%

Operational Ratio


What this Ratio Measures: Percentage of Member Contributions that are allocated for net incurred losses and Pool’s operating costs net of investment income. Do our losses & operating costs (net of interest revenue) exceed the pool’s net contribution? If the operating ratio is less than 100%, then WSTIP’s net position will increase.

1) Investment Earnings include interest and GEM income 2) Net contributions are net of reinsurance cost 3) Net incurred losses are net of reinsurance recovery

Expense Ratio [Expenses] / [Contribution]

Year Expenses Gross Contribution Expense Ratio 2017 $3,107,148 $14,327,086 21.69% 2016 $3,181,020 $12,864,133 24.73% 2015 $3,036,853 $12,245,048 24.80% 2014 $2,540,836 $11,570,191 21.96% 2013 $2,437,575 $11,225,365 21.71% 2012 $2,223,069 $10,662,805 20.85% 2011 $2,271,884 $10,899,471 20.84% 2010 $2,111,068 $10,214,682 20.67% 2009 $1,897,246 $8,321,754 22.80% 2008 $2,136,309 $7,999,343 26.71%

Operational Ratio

Target : Less than 25% *may be higher to accommodate special projects or programs



Task 2 - from 2018: Ratios / Ratio Subcommittee What problem are we trying to solve? What metrics should the Audit Committee use to evaluate the Pool’s financial performance and health? Background Besides annual actuarial studies and capital funding studies every three years, the Pool has typically tracked some ratios to also provide feedback on the Pool’s overall financial health. During review of the Strategic Target Financial Ratios policy, the Audit Committee assessed the ratios that are currently tracked and reported to the Board. Those ratios are the Expense ratio and the Loss ratio. The Ratio Subcommittee (of the Audit Committee) was formed to evaluate current metrics, make recommendations for reporting additional metrics, set preliminary performance targets and report results to the Audit Committee. Six ratios have been identified by the Ratio Subcommittee and preliminary targets have been set. Issues • Are these ratios meaningful, relevant and understandable? • What should the target be for these ratios? • Which Pools should we use for comparison? Who should do what when? Retreat attendees to answer, who should do what when, question. However, a sample could be: • Ratio Subcommittee will report results to the Audit Committee during the February meeting. • Audit Committee will review both ratios and targets, and changes to targets. The Audit Committee is

comprised of the Executive Committee members. • Upon approval by the Audit Committee / Executive Committee, the ratios and targets will be

incorporated into policy and presented to the Policy Governance Committee for review. • Upon approval by the Governance Policy Committee, the policy will be presented to the Board for

adoption. • The policy will be reviewed by the Audit Committee annually. The 2019 review will include

comparison of ratios and targets to peer Pools. Why is this worth spending time on? Meaningful and understandable ratios will provide insight into the Pool’s financial performance and health. These ratios will be used by the Audit Committee to provide oversight, and by the Board to inform budget and policy strategies. Supporting Materials • Memo summarizing ratios and preliminary targets. • Individual sheets for ratios with historical data Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? No


Retreat Notes – Task 2 - Strategic Ratios / Ratio subcommittee The work of the ratios subcommittee is complete.

- Proposed ratios and updated Target Financial Ratios Policy to be presented to the Audit / EC Committee at the February meeting.

- Upon approval, policy and ratios presented to the Governance Policy Committee. - Upon approval, policy and ratios presented to the Full Board for adoption.

Urgent Not Urgent

Important Less Important Audit Committee (work complete)

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February 14, 2019 TO: Executive Committee FROM: Rick Hughes, General Counsel SUBJECT: Coverage Decision Appeal Process THIS ITEM IS FOR DISCUSSION ONLY Background At the Executive Committee (EC) Retreat in January, one task the EC wanted to review was the process for appeal of a coverage decision by the Executive Director following tender of a claim or complaint by a WSTIP Member. Staff was asked to make recommendations for the EC to consider. At the February 28, 2019 EC meeting, Staff would like to receive guidance from the EC in order to help determine what recommendations to bring to the EC at a subsequent meeting. Discussion The WSTIP Bylaws state as follows with respect to appeal of a coverage decision: Section 52. Appeal to Executive Committee a. A Member or other person feeling aggrieved by the decision of the executive director regarding a tender decision, may appeal that decision to the Executive Committee by filing notice thereof with the president and executive director. The notice shall specify the identity of the appellant, the decision from which the appeal is taken, and the reasons why the appellant believes the decision of the executive director was wrong. Such notice must be filed within thirty days following such decision. b. The appeal shall be set for consideration at the next regular meeting of the Executive Committee or, in the discretion of the president, at the regular meeting following the next regular meeting. c. Any Executive Committee member employed by the Member taking the appeal shall recuse herself or himself from the proceedings. d. At the hearing before the Executive Committee, the appellant shall first present facts and argument followed by the executive director. e. Following the hearing or any continuation thereof, the Executive Committee shall issue a written determination on the appeal. Questions for the EC to consider in providing guidance to staff include:

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1. Does the EC want Staff to recommend any changes it believes would make the appeal process

work better for its Members, even if an amendment to the Bylaws by the full Board would be necessary? Would the EC prefer to limit changes to those that are consistent with the existing Bylaws and thus not require Board approval? An example of a change that would require the Bylaws to be amended would be if the EC wanted its decision on appeal to be final, or if it wanted to require mediation as a pre-requisite to litigation. However, there is quite a lot that can be accomplished within the existing framework, such as the procedural rules that the President and General Counsel developed for the last appeal, a copy of which is attached.

2. What should be the role of the President, Executive Director, General Counsel, and coverage attorneys in the appeal process?

3. How closely should the EC adhere to the coverage document in making its decision? WSTIP’s coverage counsel has opined that the EC is not limited to the conditions of the coverage document and may act in the best interest of WSTIP in making its decision. An example of a procedural rule in this regard might be that the EC in making its decision on appeal will first look at the coverage document language, then to the intent if the language itself is not clear, and only after that may it disregard the coverage document or the intent in making its decision. Is the process better served by taking each decision one case at a time without any prescribed rules, which appears to be how decisions are currently made?

4. Should only denials of coverage be appealable? Currently, both a denial and a reservation of rights decision are appealable. Is it premature to appeal a ROR decision when a final decision has not been made?

5. Should the hearing be informational in nature, or should it be adversarial, similar to a court proceeding?

6. What protections can be included in the process to ensure that the appellant member believes it was treated fairly even if it is not successful on appeal?

It isn’t expected that the answers to these questions, as well as others EC members may raise at its February 28, 2019, meeting will be answered. However, the discussion should help inform Staff about the ECs preferences and provide guidance in forming recommendations. Further, raising these questions does not necessarily mean that wholesale changes are needed or even desirable. The EC could determine that the existing process is sufficient, or only needs minor changes. However, in that the appeal process is one of the few times that a Member and WSTIP are potential adversaries, it makes sense to examine the coverage appeal process to ensure fairness, objectivity, and consistency with WSTIP’s institutional values. /rh

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February 21, 2019 TO: WSTIP Executive Committee FROM: Tracey Christianson, Executive Director SUBJECT: Driver Record Monitoring Program FOR DISCUSSION ONLY BACKGROUND See Task 10 from the Retreat (attached). This is an important and urgent item. There are several possibilities regarding the Driver Record Monitoring Program if the legislation we are asking for does not get approved or if some portions get approved and not others. WSTIP MEMBERSHIP

Possibilities Ramifications No change to legislation

Possibility that monitoring not allowed / program could end.

Partial changes to legislation – allowed by release needed

Vanpool drivers – we have releases now Employees – only a few agencies have releases for all employees

Question – Would WSTIP continue to operate the program if there was no vanpool monitoring allowed and employees were required to sign releases? Or would it make sense to just stop? There will be some agencies that do have releases for employees, although the majority do not.

Question – If we stopped, Staff would need to return funding to the Members as the program itself is pre-paid. Would we need to get permission to do that?

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INTERLOCAL AGREEMENT AGENCIES Possibilities Ramifications No change to legislation

Possibility that monitoring not allowed / program could end.

Partial changes to legislation – allowed by release needed

Employees – no agencies have releases*

The Department of Licensing letter to us suggests that they believe that the Interlocal Agreement members should not be allowed because we have no agent relationship with those organizations. Question – Does the Executive Committee want to continue to host the Interlocal Agreement agencies? Is this something that the Executive Committee would want to push back on DOL about, or is it something they would prefer to let go? Funding from those agencies helps offset the cost of audit requirements. NEW CONTRACT CHANGES If we hit a home run at the Legislature, we still anticipate program changes. Their requirements include more auditing of the membership, training and refresher training of Envision administrators, and an increased frequency and rigor of audits for our vendor, Data Driven Safety. We collect extra funding (over actual cost) in order to pay for a third-party to audit the vendor. The cost of developing and implementing other training programs was not anticipated, and therefore is not budgeted. However, until we figure out what we are dealing with as far as how the program is going to look, we have not been overly concerned about the auditing or training requirements. Although the auditing requirements seem unnecessarily intense, we agree the training requirements would be a good thing to do. We believe our vendor, Data Driven Safety, is also committed to helping us with meeting new contract requirements. Staff ask for a discussion on the pending questions. UPDATE ON THE LEGISLATION Bills HB-1360 and SB-5725 are moving through Committees now. Joanne Kerrigan testified twice on the bill (at the House and the Senate). At the Senate the testimony was met with a little bit of grousing of “how boring a bill.” However, it appeared to have positive momentum. The House early on seemed receptive and then appeared to be stuck on the “no release” requirement. WSTA was able to provide more detailed explanation to those individual legislators and the tension over the requirement appears to have eased. We will give a verbal update on the progress of the legislation at the meeting. /tc


Task 10 - from 2018: Driver Record Monitoring Program What problem are we trying to solve? What needs to be done if the DOL contract terms for Driver Record Monitoring (DRM) change significantly? Background Historically members obtained full driving abstracts annually from the Department of Licensing (DOL) in order to check for licensing status changes and traffic infractions. In 2009 WSTIP contracted with DOL to participate in a then-new service allowing subscribers to monitor driver records monthly for any changes during the prior month. Members were then able to receive more timely notification of changes, in addition to cost savings. A copy of a driver’s full record currently costs $13 whereas monthly monitoring is .06 per monitored license. The original contract with DOL was signed in August 2009. An extension was signed June of 2011 extending the contract until 2015, and an addition extension was signed March 2015 extending the original contract until June 30, 2020. In July of 2018 DOL contacted WSTIP for the purpose of signing a new contract replacing the original 2009 contract. Many things have changed since 2009 including access, security and auditing requirements to receive DOL data. Acceptance of the DOL contract as written would preclude us from offering the service to non-member public entities; remove vanpool as a class of drivers eligible for monitoring; establish several new audit requirements for both WSTIP and Members; and add the requirement to obtain signed releases from all monitored drivers. After several changes were negotiated, DOL informed us that no further changes to the contract would be considered. On October 14, WSTIP requested resolution intervention through the Governor’s review process. On October 23rd DOL agreed to a meeting attended by DOL counsel, Executive Director Tracey Christianson, General Counsel Rick Hughes, and Administrative Services Manager Andrea Powell. DOL sited RCW 46.52.130 as the basis of their decision and there was little progress made on the core issues. DOL informed WSTIP that in the absence of a legislative fix, they were unable to modify the contract further. This was especially disappointing regarding Vanpool drivers as this was the primary reason WSTIP began monthly monitoring which became WSTIP’s first mandatory best practice. WSTIP subsequently received notice from DOL stating in the absence of a signed contract, access will be terminated June 30, 2019. The proposed language is already in the RCW, but not included WSTIP’s class of drivers. Michael Shaw was engaged to lobby for adding the enabling language to RCW 46.52.130 allowing WSTIP to continue providing monitoring services. The legislation has been drafted and we are hoping it is picked up in the 2019 legislative session.


Issues If a contract is not signed by June 30, 2019, DOL will terminate WSTIP’s access to monthly driver license monitoring unless it accepts the contract as is. This means in absence of legislative changes: • WSTIP must discontinue offering monitoring services to non-Member public entities • Vanpool drivers can no longer be monitored requiring changes to the Governance Policy: Member

Driver Record Monitoring Policy and significant changes to member vanpool operations • Members will be required to obtain signed releases from all employees in order to continue with the

monitoring program With or without a legislative fix, there will be additional auditing and reporting requirements for both WSTIP and Members. These are not trivial requirements and will increase WSTIP Staff and member time dedicated to these tasks. Who should do what when? • The Board should discuss an action plan should the legislative fix fail to be passed during the 2019

legislative session. • Impacts of the new audit and reporting requirements on both Staff and Members should be assessed. Why is this worth spending time on? If the legislative fix does not pass this session, signing the DOL contract will result in significant changes to the driver record monitoring program that will affect Member’s operations. The alternative is terminating the driver record monitoring service. . Supporting Materials • RCW with proposed changes • Termination letter from DOL • SRMO approval of the program • Governance Policy: Member Driver Recording Monitoring Policy

Timeframe Is this urgent? Yes Is this important? Yes Is this time sensitive? Yes


Retreat Notes – Task 10 – Driver Record Monitoring Program Retreat participants agree that this is a pressing problem. A lot depends on the Legislature. What are the issues if we can’t get information? Legislative bill HB 1295 addresses the needed changes. WSTA is partnering with their Member’s lobbyists to move this forward. Possible outcomes are:

- Legislation passes and resolves the issues. - All employees are required to sign waivers; and/or - WSTIP can no longer contract via Interlocal agreement with non-Members; and/or - Vanpool drivers can no longer be monitored monthly.

Before April, the Executive Committee should:

- develop options in the event of a negative outcome; - send out communication to Membership - Stay engaged with repercussions (service changes / liability / cost / etc.)

Staff Research:

- What does King Co. Metro do? - Are there commercial monitoring services available?

Urgent

Not

Urgent


Less Important

STATE OF WASHINGTON

DEPARTMENT OF LICENSING

PO Box 2076 Olympia, Washington 98507-2076

October 15, 2018 Tracey Christianson, Executive Director Washington State Transit Insurance Pool 2629 12th Court SW Olympia, WA 98502 Dear Ms. Christianson, I am responding to your request for changes to the proposed contract between the Department of Licensing (DOL) and the Washington State Transit Insurance Pool (WSTIP) for access to driving records. Since the contract between DOL and WSTIP was initially executed over 10 years ago, several things have changed regarding how personal information is shared, used and secured, including an increased number of regulations, such as Revised Code of Washington (RCW) 46.52.130, about how data may be released. As a result, all new DOL data sharing agreements contain provisions and limitations not found in previous contracts. Specific to abstracts of driving records, RCW 46.52.130 states DOL “…may furnish an abstract of a person’s driving record as permitted under this section.” The statute does not give DOL discretion in making any other allowances, interpretations or exceptions to the list of permissible reasons to release driving records, or whose records may be monitored. WSTIP has requested to get access to driving records for its members and other entities as an agent under subsection (h), State colleges, universities, or agencies, or units of local government. Although other sections of RCW 46.52.130 allow “agents” to access driving records for their clients, subsection (h) does not have this provision and DOL therefore does not have the authority to give WSTIP access to driving records for its members under subsection (h). However, WSTIP, as an agent for its members, may access driving records under subsections (b) Employers or prospective employers, and (d) Transit authorities. If WSTIP wishes to continue to access driving records for its members, it may do so under subsections (b) and (d) as long as it meets the requirements of those sections, including obtaining a Release of Interest from each individual prior to requesting the driving record for employment purposes. WSTIP has also requested that it be allowed to review driving records (aka “monitoring”) for vanpool drivers. Unlike Subsections (b) and (e), subsection (d), Transit authorities, does not allow DOL to provide monitoring services.

Tracey Christianson, Executive Director October 15, 2018 Page 2 Additionally, during our meeting on August 22, 2018, WSTIP stated it was providing driving records to non-member entities such as counties, fire districts and cities for employment purposes. DOL believes that providing driving records to non-members is outside the scope of WSTIP’s authority as a risk pool for certain transit authorities. DOL understands how changes to the data sharing regulations have impacts on how WSTIP conducts business. To allow time for WSTIP to pursue changes to state law in the next legislative session as a means of continuing its business practices, WSTIP’s current contract (DOL #K1239) will be extended through, and terminate, on June 30, 2019. After that, if WSTIP is successful in getting the law changed, DOL can provide driving records pursuant to the revised law. However, if WSTIP is unsuccessful, WSTIP may enter into a new contract with DOL for driving records under the laws in effect at that time. As the statutes are written today, the agreement would contain the following conditions:

• WSTIP must ensure all subrecipients requesting driving records for employment purposes, or monitoring as allowed under Subsection (b), have signed a Release of Interest for each individual prior to requesting the driving record;

• WSTIP cannot provide monitoring services for vanpool drivers; and • As an agent to its subrecipients, WSTIP must be responsible and accountable to ensure

that its subrecipients meet all DOL data security, subrecipient, and permissible use requirements as outlined in the new contract. As such, it must at a minimum audit all subrecipients for both data security and permissible use.

Please let me know if you have any questions. Sincerely,

Debbie Dunn Debra Dunn, Data Sharing Manager Program and Services Division Cc: Brad Benfield, PSD Assistant Director DOL Contract File

Skip a trip – go online www.dol.wa.gov

We are committed to providing equal access to our services. For information visit dol.wa.gov/access. (TDD/TTY call 711)

http://www.dol.wa.gov/

February 14, 2019 TO: WSTIP Executive Committee FROM: Tracey Christianson, Executive Director SUBJECT: 2019-2020 Executive Committee and Board Meeting Schedule Action Request: Adoption of the WSTIP’s 2019-2020 Meeting Schedule. This item was included in the Executive Staff Report in December 2018. Background: The Board President and Executive Director have developed a meeting schedule based on minimizing conflicts with Member Board meetings and other significant meetings/staff commitments.

2019 January 16-18 Executive Committee Retreat 6:00 pm Cedarbrook Lodge @ SeaTac Jan 31 - Feb 1 GEM Board Meeting Scottsdale, AZ February 28 Executive Committee Meeting 9:00 am WSTIP Conference Room March 3-6 AGRiP Spring Conference St. Louis, MO March 28 Executive Committee Meeting 9:00 am

Bellingham March 28 Work Session 1:00 pm March 29 Quarterly Board Meeting 9:00 am April 25 Executive Committee Meeting 9:00 am WSTIP Conference Room April 25-26 GEM Meeting Washington D.C. May 23 Executive Committee Meeting 9:00 am WSTIP Conference Room June 9-12 PRIMA Annual Conference Orlando, FL June 27 Executive Committee Meeting 9:00 am

Tri-Cities June 27 Work Session 1:00 pm June 28 Quarterly Board Meeting 9:00 am July 25 Executive Committee Meeting 9:00 am WSTIP Conference Room July 25-26 GEM Meeting Madison, WI July 28-31 AON Pooling Symposium Manchester Village, VT August 4-7 AGRIP CEO & Senior Leadership Grand Rapids, MI August WSTA Roadeo

SeaTac Area August Public Transportation Conference August 22 Executive Committee Meeting 9:00 am WSTIP Conference Room Sept 10-13 CAJPA Conference Lake Tahoe, NV

September 26 Executive Committee Meeting 9:00 am Wenatchee September 26 Work Session 1:00 pm

September 27 Quarterly Board Meeting 9:00 am October 6-9 AGRiP Fall Education Conference Cleveland, OH October 24-25 GEM Board Meeting Spokane, WA October 24 Executive Committee Meeting WSTIP Office December 5 Executive Committee Meeting 9:00 am

Tacoma December 5 Work Session 1:00 pm December 6 Quarterly Board Meeting 9:00 am

2020

Date

Meeting Meeting

Time Meeting Location

January 15-17 Executive Committee Retreat 6:00 pm Vancouver January 17 Executive Committee 11:00 am January 29-30 GEM Meeting Cape Coral, FL February 20 Executive Committee 9:00 am WSTIP Conference Room March AGRiP Spring Conference March 26 Executive Committee 9:00 am

Leavenworth March 26 Work Session 1:00 pm March 27 Quarterly Board 9:00 am April 23 Executive Committee 9:00 am WSTIP Conference Room April 23 GEM Meeting Washington D.C. May 28 Executive Committee 9:00 am WSTIP Conference Room June 14-17 PRIMA Annual Conference Nashville, TN June 25 Executive Committee 9:00 am

Everett June 25 Work Session 1:00 pm June 26 Quarterly Board Meeting 9:00 am July 23 Executive Committee 9:00 am WSTIP Conference Room July 23 & 24 GEM Meeting Columbus, OH August AGRIP CEO & Senior Leadership August 22-23 WSTA Roadeo

Spokane August 24-25 Public Transportation Conference August 27 Executive Committee 9:00 am WSTIP Conference Room September CAJPA Conference Lake Tahoe, NV September 24 Executive Committee Meeting 9:00 am

Moses Lake or? September 24 Work Session 1:00 pm September 25 Quarterly Board Meeting 9:00 am October AGRiP Fall Education Conference October 29 GEM Board Meeting Grand Rapids, MI October 22 Executive Committee Meeting 9:00 am WSTIP Conference Room December 3 Executive Committee Meeting 9:00 am

Olympia Area December 3 Work Session 1:00 pm December 4 Quarterly Board Meeting 9:00 am

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CHARTER for

Emerging Risks and Opportunities 1. Group name: Emerging Risks and Opportunities

2. Purpose: To establish a forward looking, comprehensive framework to manage emerging and existing risks and

opportunities that could now, or, at some point in the future;: create new coverage’s and services, impair WSTIP’s financial strength, or impact its competitive position or reputation. Desired State: • Proactively identify potential emerging risks and opportunities. • Assign accountability for reacting to and responding to an identified risk. • Review analysis and quantifications of the exposures to emerging and existing risks. • Report significant emerging risks and opportunities to the WSTIP Board and Executive Committee.

3. Boundaries:

a. This shall be an ad hoc committee. b. This is an advisory committee to the Executive Committee. c. The committee shall consist of the interested Executive Committee and Board members. WSTIP staff will serve

in an advisory capacity.

4. Operating principles: a. All members are expected to attend all meetings. b. Meetings shall be chaired by a member elected from the interested group. c. The committee shall meet at least quarterly and as often as necessary. The time and place of meetings shall be

determined by the chair. d. The Pool’s Sstaff shall provide support to the committee. e. The committee shall seek to decide all matters before it by consensus. f. The chair shall be responsible for producing an agenda for each meeting. g. If Board members have ideas for the committee to consider, they should submit them through the chair or a

committee member for discussion.

5. Committee Members a. Staci JordanDanette Brannin – Chair b. Mike Burress c. Rob HuyckJoe Macdonald d. Ken Mehin Leann McNulty e. Shonda Shipman c.f. Tom Hingson d. Jim Quintana e. Amy Asher f. Ken Mehin g. Nick Covey h. Joanne Kerrigan i.g. Chris DeVoll

6. Authorization: a. The Executive Committee authorizes this committee and the committee shall report to the Executive Committee.

Emerging Risks and Opportunities Charter History Executive Committee Approval: February 28, 2019 Revisions/Review of Charter:

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CHARTER for

Emerging Risks and Opportunities

1. Group name: Emerging Risks and Opportunities

2. Purpose: To establish a forward looking, comprehensive framework to manage emerging and existing risks and

opportunities that could now, or at some point in the future: create new coverages and services, impair WSTIP’s

financial strength, or impact its competitive position or reputation.

Desired State:• Proactively identify potential emerging risks and opportunities.• Assign accountability for reacting to and responding to an identified risk.• Review analysis and quantifications of the exposures to emerging and existing risks.• Report significant emerging risks and opportunities to the WSTIP Board and Executive Committee.

3. Boundaries:a. This shall be an ad hoc committee.b. This is an advisory committee to the Executive Committee.c. The committee shall consist of the interested Executive Committee and Board members. WSTIP staff will serve

in an advisory capacity.

4. Operating principles:a. All members are expected to attend all meetings.b. Meetings shall be chaired by a member elected from the interested group.c. The committee shall meet at least quarterly and as often as necessary. The time and place of meetings shall be

determined by the chair.d. The Pool’s Staff shall provide support to the committee.e. The committee shall seek to decide all matters before it by consensus.f. The chair shall be responsible for producing an agenda for each meeting.g. If Board members have ideas for the committee to consider, they should submit them through the chair or a

committee member for discussion.

5. Committee Members:a. Danette Brannin – Chairb. Mike Burressc. Joe Macdonaldd. Ken Mehine. Leann McNultyf. Tom Hingsong. Chris DeVoll

6. Authorization:a. The Executive Committee authorizes this committee and the committee shall report to the Executive Committee.

Emerging Risks and Opportunities Charter History Executive Committee Approval: February 28, 2019 Revisions/Review of Charter:

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CHARTER for

UNDERWRITING COMMITTEE

1. Group name: Underwriting Committee

2. Purpose: The committee will identify acceptable risks and review the allocation of costs and surplus prior to presenting their recommendations to the Executive Committee for consideration. The committee will: a. Identify acceptable risks. b. Determine funding for identified risks. c. Review strategic capital initiatives and report findings and recommendations to the Executive

Committee and Board.

3. Boundaries: a. This shall be an ad-hoc committee. b. This is an advisory committee to the Executive Committee. c. The committee shall consist of a Committee Chair from the Executive Committee, a maximum of

three other Executive Committee members, and a maximum of 4 additional Board members. d. The Executive Director or their designee will serve in an advisory capacity.

4. Operating principles: a. All members are expected to attend all meetings. b. Meetings shall be chaired by an Executive Committee member appointed by the President. c. The committee shall meet at least annually or as often as necessary. The time and place of

meetings shall be determined by the Chair. d. The Pool’s Staff shall provide support to the committee. e. The committee shall seek to decide all matters before it by consensus. f. The chair shall be responsible for producing an agenda for each meeting.

5. Authorization: a. The Executive Committee authorizes this committee and the committee shall report to the

Executive Committee. Underwriting Committee Charter History Executive Committee Approval: February 28, 2019 Revisions/Review of Charter: Date

February 28, 2019 TO: WSTIP Executive Committee FROM: Tracey Christianson, Executive Director SUBJECT: Clean-up for Loss Year 2015 Action Requested Approve changing the comparison year for the Board’s strategic goals from 2015 to 2016. Background This is Task 6 from this year’s Retreat. Three data-centric goals were incorporated into the Strategic Plan: 1. Reduce claims resulting from rear-end collisions, passenger injuries from hard braking, and improper

mobility device securement by 6% by December 31, 2018 as compared to 2015. 2. By December 2022, have a minimum of a 50% reduction in claim frequency and severity of claims

greater than $500K as compared to 2015. 3. Reduce bus pedestrian/cyclist strikes to “zero” annually. The Board was aware of the necessary data clean-up needed in order to make these comparisons. During 2018 temporary staff completed review and cleanup of 2016, 2017 and 2018 data. Working 20 hours per week the work took approximately 8 months at the cost of approximately $23,000. Staff is aware that the 2015 data imported from Riskmaster will be problematic and require more effort. Since this is part of the Board’s Strategic Plan, Staff cannot change the comparison year without Executive Committee approval. The small group that worked on this topic at the Retreat agreed that the cost of cleanup was not worth the effort. Staff is requesting that the comparison year for the strategic goals be changed from 2015 to 2016. Attachment: Retreat task 6 AP/tc


Task 6 - from 2018 Strategic Plan: Loss Year 2015 What problem are we trying to solve? Should we do the data cleanup necessary to compare to 2015 or should we move the comparison year to 2016? Background A strategic priority of the Pool is that WSTIP desires to keep people and property safety. In keeping with that priority, WSTIP adopted three goals:

1. Reduce claims resulting from rear-end collisions, passenger injuries from hard braking, and improper mobility device securement by 6% by December 31, 2018 as compared to 2015.

2. By December 2022, have a minimum of a 50% reduction in claim frequency and severity of claims greater than $500K as compared to 2015.

3. Reduce bus pedestrian/cyclist strikes to “zero” annually. Issues The Board was aware of the necessary data clean-up that needed to be done in order to make these comparisons. We completed review and clean-up of 2018, 2017, and 2016 data by using a temporary employee working 20 hours per week for 8 months. The cost of this clean-up was approximately $23,000. Staff are aware that 2015 is messier than the other years and will take an additional effort in that besides temp time, a staff member will need to retrieve documents from our old document management system and load them into Origami in order for the work to be complete. If these costs and time do not seem to be of good value, an option is to move the comparison date from 2015 to 2016, and 2018 to 2019 or even as an annual review. The downside is that 2015 was a bad loss year and therefore it makes it a good year to compare to where 2016 was an improved loss year. Who should do what when?


• Retreat attendees to answer, who should do what when, question. Why is this worth spending time on? Staff are reluctant to proceed with more data cleanup without the Executive Committee aware of the ongoing effort and costs. Staff cannot change the strategic priority without Executive Committee buy-in. Timeframe Is this urgent? No Is this important? Yes Is this time sensitive? Yes, impacts staff workplan for 2019


Retreat Notes – Task 6 – from 2018 Strategic Plan: Loss Year 2015 Retreat participants agreed that it is an issue. Recommendation is to not spend the money and change the loss year. However, the final decision has to be an EC decision since it is part of the Strategic Plan. Important, but not urgent. Time sensitivity: Impacts 2019 Staff workplan.

Urgent Not Urgent

Important Less Important Executive Committee

February 28, 2019 TO: WSTIP Executive Committee FROM: Tracey Christianson, Executive Director

Andrea Powell, Administrative Services Manager Cedric Adams, Claims Manager

SUBJECT: Executive Staff Report – February 2019

FROM THE EXECUTIVE DIRECTOR NEW BOARD MEMBERS Welcome new Board members: Michael Schmieder, Everett Transit; Brianna Malmquist and Lowell Nee, Valley Transit; and Todd Morrow, Island Transit. That brings our total new Board members for the year (2019) to four. Behind the Curtain started for these folks in January. GOVERNMENTAL ENTITIES MUTUAL (GEM) GEM held their members session and Board meeting in October of last year. Earlier this month, GEM released a recap memo which is attached to this report for your information. GEM has scheduled a cyber summit for July this year and the Executive Director will be attending. This happens to be on the Executive Committee meeting date, however, we have already arranged for other staff members to coordinate the meeting. Of interest: since Al retired, there has not been a GEM representative from Washington even though GEM has a large membership base here. That has recently changed. Rafaela Ortiz, the Chief Operating Officer for Enduris, is now on the GEM Board. Enduris is a special interest pool located in Spokane. PROPERTY RENEWAL AND EARTHQUAKE Staff met with our brokers from Alliant Insurance Services, Brian White and Lilian Vanvieldt regarding the upcoming renewal of our property coverage. Unfortunately, the market has started to harden related to capital losses from catastrophic events and the implementation of new underwriting criteria associated with earthquakes. Also, as we have conducted property appraisals (discussed in the Administrative Services area) we have seen property values rise 5%. These increases are likely due to the increased cost of construction. This means we may be facing a renewal with increased costs. One other topic that we have started to extensively discuss is the earthquake coverage and the Earthquake deductible. I am aware there is a general lack of understanding regarding earthquake coverage. Also, there is one new product available (previewed on February 21) that some Members might be interested in to help cover specific locations for this exposure.

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The broker is recommending: · Adopting a policy regarding the allocation of the deductible and the allocation of limits if a limit

loss was experienced. · Educate the members on how the current limits and deductibles work. · Determine the interest in alternative earthquake products.

Is this a topic the Executive Committee wishes to tackle, is a Committee appropriate, or should it just go straight to the Board? Renewal of property is July 1. APPLICATION SUPPORT SPECIALIST POSITION We are pleased to announce that Christine Rouse will be filling the Application Support Specialist position starting March 1. Christine comes to us from Capital Medical Center where she was the coordinator for the patient information application. This system is their main line of business application (like Origami for WSTIP). Christine is also the former Technologies Manager for Mason Transit Authority. She has a long history in technology, project management and system analysis. She has an MBA in business administration as well as a graduate certificate in Project Management. We look forward to Christine joining our team and you will be able to meet her at the March quarterly Board meeting. MEMBER SERVICES MANAGER POSITION Ugh, Joanne is gone. She is really gone. We started soliciting for a new Member Services Manager. As of the February 13 (first deadline), we had 10 applicants. We decided to invite five of those to an interview. Interviews were conducted February 19 and 20. Staff can give a verbal update on the progress on hiring for this position at the meeting. ADMINISTRATIVE SERVICES ACTIVITIES VALUE COLLECTION The Broker has requested an early collection of exposure values so that they can begin looking at coverage options. Requests for 2018 actual miles driven as well as fleet information, have gone out to members with response request by March 1. PROPERTY APPRAISALS Alliant has completed appraisals for Community Transit, Pierce Transit, C-Tran and Spokane. Alliant appraisers were able to produce the additional information needed for the Transit Asset Management (TAM) reporting requirements for Community for an additional cost. Other members interested in having Alliant produce the additional reporting metrics, should contact Andrea Powell. Appraisals will continue throughout 2019 with mediums member up next. REPORTING PROPERTY VALUES Alliant has opened their online property reporting portal. Members will now be able to update their property schedules through the portal, rather than by sending a spreadsheet to WSTIP. Properties that have had Alliant appraisals will have that updated information will automatically be loaded into the portal. Staff will ask Board Members to provide contact information for member staff that will be responsible for property reporting. Training webinars will be scheduled. WSTIP Board members will have read access, unless they are also the person who is doing the actual data entry. Property values are due by April 19.

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PUBLIC RECORDS IN ORIGAMI Staff have received many questions about public records in relation to Origami. Hughes and Powell met with Pierce Transit staff recently regarding this topic. Some of the issues that are on the table are ownership of records in Origami (what is WSTIP’s and what is the Member’s); should members have access to WSTIP documents, or should these views be restricted further to show only what the Members are actively using; and how should members and WSTIP coordinate public record responses. Staff are discussing options related to the goal of getting WSTIP and Members on the same page regarding public record responses to ensure consistency. Staff anticipate more progress on this topic in Quarter 2 and Quarter 3. FACILITIES The new carpet and interior painting work is complete. We have revamped Al’s old office into a small conference room which will be very helpful for Committee meetings (or meetings that happen at the same time). This finishes up the work that began with the claims remodel in 2017. MEMBER SERVICES ACTIVITIES JEFFEREY S. RISTAU SCHOLARSHIPS WSTIP has received and approved 1 application for a total of $1,000 for 2019. TRANSIT AGENCY VISITS Chris has started his member visits. He has completed visits to Whatcom, Grays Harbor, Mason, and Skagit. The WSTIP loss prevention team reviews the loss history of all members focusing our attention on those members that are getting an extra charge for their loss history. We then take a quick look at the loss history and any trend. Members that can benefit from extra attention from Chris are placed on the “member improvement list” (MIL) and we determine how many extra visits they will receive. Members on the MIL were notified by email in January: Pierce, Kitsap, Link, Columbia and Intercity. WSTIP TRAINING WSDOT asked WSTIP staff to help deliver more specific and more frequent training on Drug and Alcohol Substance Abuse Management Compliance training for Supervisors. Staff engaged CUTR and have asked WSDOT to amend the RTAP contract to include funds for this training. WSDOT agreed. Two live class trainings will be held February 19 and 21 and two live webinars on March 14 and 19. Staff has submitted an RTAP Grant application for training for 2019 – 2021. The total amount being requested is $157,300 for the two-year period. This includes compliance, safety and risk, operations, human resources, supervisory, and dispatch classes as well as the Trainers Showcase. RISK MANAGEMENT GRANTS As of February 21, one of the 25 members have been awarded risk management grants. The deadline to apply for the $2,500 grant is December 15.

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TRAINER’S ACADEMY Staff met with Clarified Concepts to talk about the curriculum and make up of the 3-day boot camp that leads off the Trainer’s Academy. Chris is tasked with lending expertise in instruction, operations, and training so the training has transit focused themes. Scheduling and training dates are set for June 4 – 6, 2019. Staff has and will continue to market the program. COLLISION AVOIDANCE PROJECT AT PIERCE The project is back on track after vendor changes and budgetary adjustments were made. All the research partners have signed amendments to their contracts. Pierce passed their budget for the contingency funds for the project in December. Work will pick up in the next 6 – 12 months. The bus that was chosen for alpha testing is scheduled to go to Lynchburg, VA and test there at the VTTI test track. The bus will be there for about 2 – 3 months. LYTX DRIVECAM STATUS AT PIERCE TRANSIT Active monitoring is still taking place since the go-live date of September 1, 2018. The first formal report out will be discussed at the March Quarterly Board meeting. NETWORK SECURITY WSTIP will reimburse any agency that has utilized user training within the last year. Any Member that purchases the user training in the next year will be reimbursed by WSTIP. We will continue to reinforce efforts for network and cyber security. For 2018, nine members received grant funds. GUEST RIDER PROGRAM Guest rider participation was solicited, and the 2019 guest rider program participants are Ben Franklin, Clallam, Grays Harbor, Island, Kitsap, Link, Pierce, Pullman, RiverCities, Skagit and Yakima. For more information regarding this program please contact Broadhead. CLAIMS ACTIVITIES ***indicates newly added information since the last Executive Committee report. RECENTLY RESOLVED CASES OF INTEREST Heggen v. Pierce Transit (2015 case). The plaintiff was rear-ended and alleges head, neck, and back injuries. We have performed an IME on the plaintiff and discovery is concluding. The suit was filed in district court, so any jury the award is capped at $100K. We will attend a settlement conference on December 13, 2018 and trial is set for April 08, 2019. ***We settled this case at the settlement conference and all settlement documents and invoices are accounted for. This case will not be on next month’s staff report. OPEN LIABILITY CLAIMS OF INTEREST Mitchell vs. Spokane Transit (2015 case). This is a car collision accident involving a Spokane Transit vanpool. Ms. Mitchell was a passenger in the vanpool vehicle when another party hit the van broad-side. Ms. Mitchell was ejected out a window and yet another vehicle hit Ms. Mitchell. Mitchell received payment under the UIM and that claim is closed. Mitchell has a cause of action under a liability theory

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and we received a formal claim for damages to that effect. The claim for damages asked for $12 million in damages. Medical specials are close to $450K at last notification. No lawsuit has been filed. We have re-engaged the accident reconstructionist originally on this file, to further assess liability arguments. Our last collection of medical specials raised the total to over $700K. A suit was filed on this matter in late August 2018. The discovery process has begun. Our attorney is John Riseborough from Paine Hamblen. Sartin vs. Pierce (2015 case). The Pierce driver in this event suffered an unanticipated cardiac arrest and lost consciousness while driving the bus near the I-5 in Tacoma. The bus careened off multiple nearby vehicles. Plaintiff Sartin was a passenger in one of these vehicles. Sartin went to the ER and was released the same day. He started treating with a chiropractor and primary care physician for neck, shoulder, and back injuries. Medical specials are $90K, wage loss $80K (at the time of loss he was a painter earning $31.65 per hour), and decreased earning capacity $50K (lost seniority in the union). Our current defense is “sudden illness,” arguing that a driver who is suddenly stricken by an unexpected loss of consciousness is not chargeable with negligence. We filed a summary judgment motion, which was denied. Mediation for Sartin was unsuccessful. However, a companion claim to this one, Sacksteder, was settled in mediation on January 4. So far, one other tort claim form was submitted to Pierce. Trial was set for February 22, 2018. Trial is now delayed as the plaintiff has filed suit against the certified medical examiner who provided our driver’s medical card. The court has combined these lawsuits and now trial is in January of 2019. The discovery process for the new defendant has started. We will participate in this process and capitalize on any new opportunities for information; however, from the initial litigation process we already have much of what we need. We are also attempting to assess the additional facts gathered in this case. The statute for this event has run and there were no additional suits filed (four claims were closed). We are working with the medical providers to secure expert witnesses in preparation for this trial. After a request to attend a mediation on this suit form the plaintiff, we sent a settlement offer with a tentative date of October 17, 2018 to accept the offer. If the offer is not accepted, we will continue to prepare for this trial. We were not able to reach an amicable settlement on this suit and are now in full preparations for trial beginning January 28, 2019. ***In late December 2018, we renewed our motion for summary judgment and was granted before the start of trial. The plaintiff filed a motion for reconsideration, which was denied. A hearing for the co-defendant’s motion for summary judgment is scheduled for February 22, 2019. After this decision, we will have more information on whether the plaintiff plans to rest or appeal. We will continue to seek final resolution to this matter. Our attorneys are Caryn Jorgensen from Mills Meyers and Tim Malarchick from the office of Tim Malarchick. Caryn is representing Pierce and Tim is representing the widow of the driver/estate. Bowman vs. Pierce Transit (2018 case). A passenger got off our fixed route bus and then attempted to cross the street. She was struck by a passing motorist. We are still gathering information but expect severe injuries from the 20-year-old plaintiff. We have already received a claim for damages in the amount of $3-5 million, but no suit is currently filed. We received the summons and complaint on this claim in early October. We concluded our initial investigation of this claim around the same time, so we will now work towards submitting our answer to the complaint and the beginning stages of the litigation process. We were able to transfer venue from Thurston County to Pierce County. The discovery process will continue. Our attorney is Jessie Harris from Williams Kastner. Moon vs. Clallam Transit (2015 case). Plaintiff Moon exited the bus on the sidewalk at the Sequim Transit Center. On the way to her car in the parking area, the plaintiff passed around a group of passengers

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waiting to board the bus, reached in her purse for her keys, and tripped on a treeless planter behind the crowd. The plaintiff cut her nose, sprained both wrists, and broke her elbow (permanency claimed). The elbow injury required multiple surgeries. After a prosthesis was placed in her elbow joint in January of 2016 and subsequent physical therapy and manipulation, she required another surgery to place a smaller prosthesis in the joint in June of 2016. In November of 2016, the plaintiff underwent her third surgery and the prothesis was removed entirely. She argues the transit agency is liable for her injury by International Building Code, which Washington has adopted, and other premises liability causes. The plaintiff claims $120,352.41 in medical specials and $800K in general damages for a total demand of $920,352.41. This case in the early stages of the litigation process and discovery will begin shortly. The plaintiff officially added the City of Sequim as a co-defendant. For cost-sharing, we are discussing presenting a joint defense with the City of Sequim, at least through the discovery process. We have collected her medical records and they are currently under review. ***The plaintiff has dismissed the City of Sequim in a back and forth filing between including them and their dismissal. The plaintiff filed for summary judgement on the issue of liability. Originally scheduled for December 14, 2018; we will contest this motion on February 22, 2019. Our attorney is George Mix from Mix Sanders Thompson. Friemann v. C-Tran (2017 case). While deboarding, the plaintiff slipped, fell, and broke her ankle at a C-Tran transit stop. The incident took place on January 9, 2017. The claim was initially denied. The subsequent claim form states damages in the sum of $500K. She claims both bodily and emotional injuries. We are in the beginning stages of discovery. Our attorney is Steve Lamberson from Etter McMahon Lamberson Van Wert & Oreskovich. ATU Local 1015 vs. Spokane Transit (2017 case). The STA Board approved appealing this case at their November 16, 2017 meeting. We decided to keep the appeal with James McPhee, who was the lead attorney during the trial, and is most familiar with the case. The request for ATU attorney fees was submitted but will not be paid before a ruling on the appeal. Ultimately, the STA is arguing that they deserve some form of deference when applying a reasonably related advertising policy to their public transportation bus platforms. All briefs have been filed. We will now await a decision from the Court of Appeals, which may take up to six months. There is also a chance they may request an oral argument. The Ninth Circuit Court of Appeals requested oral argument on this appeal, but the date of argument is not yet known. We continue to monitor similar cases around the country in preparation for this appeal. ***Oral arguments for this appeal are scheduled for March 05, 2019 in Seattle. Our attorneys are John Drake and James McPhee from Witherspoon Brajcich McPhee. ***Haney vs. Skagit Transit (2016 case). Rhonda Haney was the driver a vehicle rear-ended as the coach attempted to change lanes in slowing traffic. There was minor damage to both vehicles. Her husband, a passenger in the same car, settled his claim in 2017. We are early in the discovery process. The plaintiff’s settlement demand claimed $48,655.48 in medical specials and demanded $299,249.80. While collecting more information in preparation for trial, we continue settlement efforts with the plaintiff. We are open to mediation, if we get closer in assessed case-value. We are currently conducting a records review and plan to have an IME prior to trial. Trial is set for September 30, 2019. Our attorney is Kris Bundy from Kulshan Law Group. Munoz, Felipe and Maria vs. Skagit Transit (2013 case). Maria Munoz claims to have her arm caught in the bus door upon her exit. She says she was holding onto her husband with her other hand and the bus began to pull away resulting in alleged dragging of them both. Mrs. Munoz complains of neck, shoulder,

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and arm pain along with an exacerbation of her mental health disorders (depression and anxiety). Mr. Munoz complains of shoulder and elbow injuries as well as trauma from the incident. We hired a medical expert to review the records and a forensics specialist to look at operational aspects of the door. The IME opined a contusion of the forearm at most for Mr. Munoz and multiple inconsistencies throughout his medical evaluation. Mrs. Munoz was opined to have non-anatomic pain syndrome. Trial was set for late April 2018, but at the plaintiff’s request, the trial was continued as they seek to also file suit against another party (a hospital) for an unrelated incident but have alleged injuries to the same areas alleged in this suit. The discovery process is underway for the new co-defendants. Our attorney is Pat McMahon from Carlson McMahon. Cerros vs. Link Transit (2013 case). Our transit bus rear-ended another vehicle. Plaintiff was a bus passenger and is claiming bodily injuries. We have attempted to settle, but our offer has been rejected. This case is still early in the litigation process. Trial has been scheduled for May 28, 2019. We have engaged a doctor to conduct a medical-record review of the plaintiff’s files for review. The records review is back and contains information on both pre-existing injuries and the resolution timeline for any injuries related to this incident. The last demand received was for $80K and mostly consisted of medical specials and lost wage claims. WSTIP has already paid the plaintiff $6,530 in regard to his lost wages claim. We will continue to prepare for the May trial date. Our attorney is Pat McMahon from Carlson McMahon. James vs. Whatcom Transportation Authority (2016 case). Plaintiff James was de-boarding a paratransit vehicle when she cut the back of her leg. James is legally blind. Her leg would not heal, and James had to have a skin graft. Due to the additional nursing care needed, plaintiff had to leave her assisted living situation and go to a nursing home. The claim was denied due to lack of evidence on what James cut her leg on and any negligence on the part of the driver. Ms. James claims $50K in medical specials and sent a settlement demand of $2 million. We are currently in the discovery process. The plaintiff was deposed. This case was dismissed via a summary judgement motion. The judge relied heavily on the video, which showed the driver doing all that he could to safely deboard Ms. James. Just before the deadline, the plaintiff appealed the trial court’s summary motion judgment. We will continue to attempt resolution to this suit and defend against the appeal if necessary. The plaintiff filed her brief on the appeal, to which we responded, and they then replied. An oral argument may be scheduled in 2019, but that date is currently not known. Our attorney is Mark Lee from Brownlie Wolf and Lee. CLAIMS ATTORNEY, ADJUSTER, AND INVESTIGATOR ROSTER Although total claim counts, to include litigated files, are down; we are finding great opportunities to test and build relationships with the new additions to the adjusting and defense counsel rosters.

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GENERAL CLAIMS INFORMATION (02/18/19) Total open litigated files = 31 Total open liability claims = 524 Grand Total of Claims (all years since 2006) = 13,122 Claims Closures 01/01/2019 to 01/31/2019– Total of 70 claims closed last month, which includes; 3 withdrawn, 0 sent to collections, 3 claim denials, 3 no formal claim filed, 30 settlements, and 31 closed subrogation claims. SUBROGATION As of February 18, 2019, there were 193 open first party auto-collision or property damage claims. Receivable totals to date for the year are below, both as a total and for each member. We were able to collect $125,324.20 in the month of January.

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$300

J A N F E B MA R A P R MA Y J U N E J U L Y A U G S E P T O C T N O V D E C

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S

SUBROGATION

2017 2018 2019

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec2017 27,465$ 59,053$ 91,362$ 60,324$ 68,281$ 6,984$ 4,227$ 4,617$ 42,146$ 93,164$ 249,572$ 168,986$ 2018 124,363$ 164,980$ 131,449$ 163,161$ 147,172$ 186,333$ 183,762$ 157,090$ 91,081$ 144,534$ 137,790$ 105,028$ 2019 125,324$

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*The difference between subrogation and recovery by member is due to other collections, such as: awarded attorney fees, salvage checks, reinsurance payments, and refunds/credits other than subrogation.

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$10

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$25

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sand

sRecovery by Member 2019

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalAsotin -$ -$ Ben Franklin 2,387$ 2,387$ Clallam 1,214$ 1,214$ Community 26,167$ 26,167$ C-Tran 7,085$ 7,085$ Grant -$ -$ Grays Harbor 3,562$ 3,562$ Intercity 4,588$ 4,588$ Island 10,644$ 10,644$ Jefferson -$ -$ Kitsap 2,038$ 2,038$ Link 168$ 168$ Mason -$ -$ Pierce 21,819$ 21,819$ RiverCities 200$ 200$ Skagit 17,784$ 17,784$ Spokane 22,113$ 22,113$ Whatcom 2,082$ 2,082$ Yakima 3,653$ 3,653$

125,505$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 125,505$

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UPCOMING WSTIP-RELATED MEETINGS AND EVENTS 2019 Feb 28 - Executive Committee, WSTIP Offices, Olympia Mar 3-6 – AGRiP Spring Conference, St. Louis, MO Mar 28-29 - Quarterly Board, Holiday Inn, Bellingham April 25 – Executive Committee, WSTIP Offices, Olympia April 25-26 - GEM Meeting, Washington DC May 23 – Executive Committee, WSTIP Offices, Olympia June 9-12 – PRIMA Annual Conference, Orlando, FL June 27-28 – Quarterly Board, SpringHill Suites, Kennewick July 25 – Executive Committee, WSTIP Offices, Olympia July 25-26 – GEM Meeting, Madison, WI July 28-31 – AON Risk Pooling Symposium, Manchester Village, VT August 4-7 – AGRIP CEO & Senior Leadership, Grand Rapids, MI August 10-14 or 17-21 – WSTA Roadeo & Public Transportation Conference, SeaTac August 22 – Executive Committee, WSTIP Offices, Olympia Sep 10-13 – CAJPA Conference, Lake Tahoe, NV September 26-27 – Quarterly Board, Wenatchee Oct 6-9 – AGRiP Fall Conference, Cleveland, OH October 24-25 – GEM Meeting, Spokane, WA October 24 – Executive Committee, WSTIP Offices, Olympia December 5-6 – Quarterly Board, Hotel Murano, Tacoma Board Member Representative travel is in bold. /tc

Government Entities Mutual, Inc., PCC

JANUARY 2019: Meeting Recap Page 1 of 2

February 7, 2019

TO: GEM Member Representatives

FROM: Andrew Halsall

RE: January 2019 Meeting Recap

The following is a synopsis of the major discussions and decisions that occurred at the GEM Members’ Session and Board Meeting in Scottsdale, AZ, on October 25. Members with questions on any of these items are encouraged to contact Parker Chambers or Andrew Halsall.

Generative Activity – Priority Trends

Teams reported on their respective topics:

Impact of changes in market conditions

Pool leadership changes that create opportunities for GEM - Management is maintaining a list of opportunities and outreach plans

Cyber risk - A GEM Cyber Summit is scheduled for July 2019

Challenges for risk pools in attracting candidates - There are potential areas where GEM can assist members with solutions, to be discussed

as part of strategic planning

Competitor pools and reinsurers add specialized services at no extra cost - Members will share observations regarding service differentiators at a future meeting

Alternative Reinsurance makes inroads into public entity market - Once the Marsh/JLT acquisition has closed, we will leverage our broker’s deep knowledge

and insight on this topic

Members’ Feedback on Renewals

Members provided the group with a recap of their recent renewal experience, noting changes in rate and self‐insured retention. The various reinsurance structures involving GEM were also discussed.

Strategic Planning

Michelle Bechamps and Ken Giffin led a group session to determine GEM’s top strategic challenges and choices for solving them. This highly‐engaged discussion prompted a number of new initiatives for consideration. Mr. Halsall will prioritize key initiatives and incorporate these into the strategic plan, for review at the April Board meeting.

Government Entities Mutual, Inc., PCC

JANUARY 2019: Meeting Recap Page 2 of 2

Board Meeting

Investment Review

Alton Cogert, of Strategic Asset Alliance, discussed the main drivers behind GEM’s unrealized investment loss of $1.6 million, commenting that the many pools and insurance companies with similar investment portfolios have experienced a similar outcome. Alton introduced a proposal to provide our investment manager, Galliard, with greater flexibility to execute orders without needing prior approval from GEM’s CEO in the event that a realized loss would be generated. On the basis that Galliard’s goal is to optimize total return, the Board agreed to authorize to Galliard to execute orders with no limitation on realized losses, but subject to a reporting threshold (to be determined) on realized losses.

Marketing Plan

The Board approved the 2019 marketing plan and a budget of $55,000.

Generative Facilitation

The Board acknowledged the benefits of an outside facilitator to assist in the generative discussions, at least while the process is in the early stages, and approved a budget of $10,000 for 2019.

Compensation and Benefits Review

The Board approved a budget of $16,500 for a review of GEM executive and staff compensation and benefits.

Treasury Management

The Board approved the establishment of a commercial banking arrangement with Capital One Bank. Mr. Halsall offered to share insights into the review process and findings.

Cyber Summit

Mr. Halsall provided an update on the summit, which will take place on July 25 in Madison, WI. He encouraged members to extend the invitation to their teams and boards.

Committees

Board Chair Parker Chambers appointed Brett Davis to the Executive Compensation and Benefits Committee, as the non‐Board member representative.

agenda 1-415-655-0003€¦ · jesse kinney, valley transit . joe macdonald, skagit transit ....

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