Minutes of the June Quarterly Meeting June 24, 2016 Marcus Whitman Hotel ~ Walla Walla

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1 Minutes of the June Quarterly Meeting June 24, 2016 Marcus Whitman Hotel ~ Walla Walla Amy Asher, RiverCities Transit Gloria Boyce, Ben Franklin Transit Danette Brannin, Mason Transit Mike Burress, Community Transit; Patti Carlin, Grays Harbor Transit Wendy Clark-Getzin, Clallam Transit Nick Covey, Past President, Link Transit Sara Crouch, Jefferson Transit Ben Foreman, Large Member Representative, Intercity Transit Kevin Futrell, Yakima Transit Jenny George, Asotin County PTBA Paul Gonzales, Everett Transit Emmett Heath, President, Community Transit Kevin Hebdon, Ben Franklin Transit Brandy Heston, Grant Transit Tom Hingson, Everett Transit Leann Hubbard, Pullman Transit Rob Huyck, Pierce Transit Staci Jordan, Medium Member Representative, Island Transit Rob LaFontaine, Small Member Representative, Twin Transit Terry Lohnes, C-Tran Ed McCaw, Valley Transit Steve Mertens, Columbia County Public Transportation Board Members Present Dale O Brien, Skagit Transit Tammi Rubert, Jefferson Transit Paul Shinners, Vice-President, Kitsap Transit Shonda Shipman, At-Large Member Representative, Whatcom Transportation Authority Lynda Warren, Spokane Transit Guests Present Jeff Beaver, Yakima Transit Steve Doolittle, Spokane Transit Sean Hoar, Davis, Wright, and Tremaine Andrew Krum, Virginia Tech Transportation Institute Brenda Lamb, Link Transit Justin Leighton, WSTA Jon Nichols, Origami Risk Brian White, Alliant WSTIP Staff Present Anna Broadhead, Member Services Assistant Tracey Christianson, Member Services Manager Chris DeVoll, Transit Risk Consultant Ron Franz, General Counsel Al Hatten, Executive Director Andrea Powell, Information Technology Program Manager Jerry Spears, Deputy Director Karey Thornton, Claims and Information Technology Assistant Call to Order President Heath called the meeting to order at 9:07 am. A sign in sheet was passed around the room and Heath had attendees introduce the person sitting to their left. Heath thanked Dick Fondahn and his wife Maria for hosting the WSTA dinner, and thanked Ed McCaw for arranging all the behind the scenes details in his hometown. McCaw acknowledged all the help Jesse Kinney did from being our chief cook, to bottle washer, we couldn t have done it without him. Kinney thanked everyone and said he enjoyed getting to meet everyone.

2 Presentations Origami Presentation Spears introduced Jon Nichols from Origami Risk. He talked about the capabilities of the product and how to make the data more useful. Collision Avoidance Spears introduced Andrew Krum from Virginia Tech. Krum talked about bus design, the types of collision avoidance technology, and their testing facilities. The Board took a short break at 10:15 am and resumed their meeting at 10:26 am. Network Security Updates Christianson introduced Sean Hoar from Davis, Wright, and Tremaine. She explained we are about a year into our network security contract with them. Hoar gave an update on the status of the network security. There was a brief discussion regarding the cyber coverage provided by the Pool, and reporting procedures. Discussion Items Member Representative Meeting Report and Discussion Foreman said the large group discussed the driver recognition program, and the lack of direction from the committee. It is a voluntary program. We need to clarify that we aren t looking for you to create new systems for tracking accident free years of driving (cumulative or consecutive). Communication issues between Board Member Reps and their agencies, I didn t forewarn my own agency so they were a little confused. We will try to be flexible for everyone, and find a new deadline that everyone is comfortable with. Heath said he would like to que up an Executive Session for the next meeting as there was a lot of frustration expressed on the driver recognition program, collision avoidance, and other initiatives WSTIP is taking from the agencies. In the time he has been on the Board we have been pushing programs out to agencies requiring much more communication and program management at the agency level and it appears to be leading to frustration, the need for member to find all the stakeholders, communicate, and coordinate. It is a growing issue staff needs to be aware of. It s leading to a different kind of member role within our agencies. McCaw said we have to be conscious of the pace of WSTIP and the pace of the members, some of us don t have staff at the agency to do it. Crouch felt this would be a better whole group discussion. Heath said he will use the Executive Committee to flesh out the thought and then bring it back to the group. Jordan said the medium members discussed the driver recognition program as well, their thoughts were similar people hadn t gotten around to responding or we simply don t have anyone that qualifies, they felt the deadline should be changed and needs to be stressed that it s a voluntary program. They also talked about the Above and Beyond award and want to keep it in mind. They would like to see a serious loss review done on the Fulbright versus Columbia County Public Transportation and how to try to prevent these types of claims in the future. Clark- Getzin said she appreciated the conflict resolution modules that WSTIP had distributed recently it s a great video learning tool. LaFontaine stated the small members discussed risks we all face, the Risk Profiles, and what our greatest vulnerabilities are and how best to reduce exposures to reduce risk. We talked about fiduciary liability, internal controls, and ended with labor relations war stories. Heath reminded everyone that Pat Dunn would be attending the September Quarterly meeting and presenting the fiduciary report she completed. Foreman asked why we couldn t make a list of uninsurable drivers. Christianson said this topic had come up before. Foreman if you pose too much risk we determine they are uninsurable and

3 cancel your policy, what if WSTIP had a process to declare a coach operator uninsurable, it is a big complex conversation, we will have to see if we want to dig into this deeper. Collision Avoidance Project Update Spears gave an update on the Collision Avoidance project, how the Pool became involved, why we are involved, the partners in this project, and who was planning to keep the equipment, put equipment into stealth mode, or remove equipment. Burress asked if Spears could share some sort of document to manage expectations of agencies so we don t have to wait for a report two years down the road. Spears said he would put something together. Risk Profiles/Safety Stars 2016 Awards Heath said you all should have received a packet of risk profiles and annual reports. The risk profile shows you how you compare to your peers in your group. In the past we acknowledged performance with the Golden Coach Award which included a lovely plaque and lapel pins, but that award has been replaced with the Safety Stars Award, which awards small, medium, and large categories and includes a monetary amount for employee recognition. This year s awards went to RiverCities Transit, Whatcom Transportation Authority, and Community Transit. Christianson reminded them they can only use the funds for employee recognition and if they need ideas to talk to Jefferson, Whatcom, and/or Ben Franklin as they received the award last year. Christianson explained how to order more copies of Risk Profiles (scan the QR code, or Brenda) and staff will get them sent out to you. Shinners felt the Risk Profiles are very helpful and requested the data behind the numbers. Spears explained the actuary does the underlying analysis then staff rolls it together to make the graphs. Congratulations to the Safety Star award winners. Financial Reports April 2016 Treasurer s Report, Income and Expense Statement, Balance Sheet, RiskMaster Report, and Comparative Income and Expense, and Balance Sheets Heath asked if there were any significant changes to the financial statements. Spears said he had updated the financials to include the new GASB requirements. He thanked Leslie Williamson from Intercity Transit and Enduris (another pool in Spokane) as they had been most gracious in helping Marisa, Joanne (CPA), and himself. If you have questions regarding the financial statements, please contact Spears. Staff Reports Executive Staff Report Hatten gave a quick update on the financial status of Governmental Entities Mutual, Inc.(GEM) and the impact to WSTIP s equity within GEM. He is also having preliminary discussions regarding a potential captive transit protected cell within GEM (captive within a captive scenario) and will bring more information in the future. Hatten said he, Spears, and Christianson listened to the WCRP vs Clark County case regarding whether Pools are insurance companies or not and it looks like the case will likely settle out before the decision come out of the Supreme Court. The Governance Policy Committee discussed the Pool s investment strategy and may look at going from our current passive investment strategy to a more active strategy similar to what Community Transit has done with the goal of generating more interest income per year. If you have questions, give Hatten a call. Christianson said her report was in the packet and gave a sneak peek into the new WSTIP website. She said staff have been working on transitioning the website since February when we purchased the software. We received our design at the end of May and hope to have a soft roll out on July 15 to see what works and doesn t work from a user perspective. If you would like to volunteer to test the new website, please let Christianson or Broadhead know. DeVoll has visited most members, and Kerrigan has finished her vanpool visits for the year. We plan to roll out the securement training as soon as we finish the simulator RFI. If you have questions, please don t hesitate

4 to contact Christianson. Spears gave a shout out to Leighton, Huyck, Covey, and Shinners they previewed an automated bus demo and are considering piloting Locomotors Ollie. Covey sad currently there is a pilot happening in Maryland. If you have questions regarding the Executive Staff Report, contact Hatten, Christianson, or Spears. General Counsel s Report Franz asked for questions regarding his recent activities. There were no questions. Broker s Report White said in the essence of time he would give his broker update during the property renewal presentation. Action Items Minutes March 25, 2016 Covey moved to approve the minutes from March 25, Jordan seconded the motion and the motion passed. Governance Policies: Assessment Allocation, Financial Target, Minimum Contribution, and Strategic Financial Target Ratios Heath said the Executive Committee forwarded these policies with a do pass recommendation and there are no substantive changes the Assessment Allocation policy although it has been updated to reflect current practices. Huyck moved to approve Assessment Allocation, Financial Target, Minimum Contribution, and Strategic Financial Target Ratios policies. Warren seconded the motion and it passed. Property/Auto Physical Damage Renewals White thanked everyone for inviting him to attend. There are two renewals. White reported a rate reduction for property (buildings and contents) and a flat renewal for auto-physical damage (APD). He suggested a structure change to the program going from $1 billion per occurrence to $500 million per occurrence. He talked about the state of the insurance market in general saying it is well capitalized with stable to softening rates. Property Coverage renewal rate reduction of 4.38% because the pool has good loss history. The all-risk limit in the current policy is $1 billion for every loss other than earthquake or flood which have different sub-limits. The Pool has a $250,000 deductible. The Pool has $496 million in values. If all member properties were destroyed at one time it would be a $500 million limit hit, we would still be able to replace all the properties. Heath asked if the Pool were to reduce to $500 million could we go back to $1 billion next year. White said we do have a clear path back up but isn t sure what the cost would be. Covey asked if the Pool could go up in $100 million increments. White said that the Pool could. Foreman asked why we were at $1 billion now. White said when the Pool left the GEM property coverage and joined the Alliant property program it was the standard. Heath asked if staff supported the recommendation. Hatten said as staff we recognize the shared $500 million to replace the buildings and contents and feel it is fair so we would recommend the Board accept the proposal. Heath asked if there was a motion. Foreman moved to accept the proposal and to authorize the Executive Director to bind coverage with $500 million in all-risk coverage as proposed. Clark-Getzin seconded the motion. Discussion: White said he was disappointed to not get a rate reduction on the APD but a flat renewal is good considering we had a loss this year (bus fire) and received a new bus out of it. Remember buses valued at more than $1.25 million need to be reported to WSTIP staff immediately. There is $20 million per occurrence with some sub-limits but you may want to consider revisiting the automatic acquisition. Heath called for a vote on the motion. The motion passed with Warren voting against. Warren said for a

5 $12,000 savings it didn t make sense when we may have to increase in the future. Heath asked if there was a motion to bind the APD coverage. Shipman moved authorize the Executive Director to bind coverage for auto-physical damage as presented. Shinners seconded the motion and the motion passed. Heath thanked White for the good results and a round of applause. Executive Session Active Claims Update The Board went into Executive Session at 12:11 pm pursuant to RCW for not to exceed 5 minutes and came out of session at 12:14 pm. Spears announced the Fulbright versus Columbia County Public Transportation matter had settled for $187,500. Member Updates Heath thanked everyone for the great discussions and engagement. He also thanked Valley Transit for being excellent hosts and staff for supporting the Board during their meetings. Our next meeting will be September 30 in Everett. A few members gave brief updates. Adjournment Heath adjourned the meeting at 12:21 pm. Submitted this _30th _ day of September 2016 Approved: Diane O Regan, Secretary

AGENDA. Work Session September 28, 2017 Hilton Garden Inn ~ Olympia

AGENDA. Work Session September 28, 2017 Hilton Garden Inn ~ Olympia AGENDA Work Session September 28, 2017 Hilton Garden Inn ~ Olympia WebEx Join the meeting Dial-in 415-655-0003 Meeting number 806 893 959 Meeting password: Abc123 8:00 am BREAKFAST 9:00 am Executive Committee