1. WSTIP December 2008

2.  Anecdotal Observations  Exposures (miles driven and vehicles)  Events  3 rd and 1 st party claims  Financial data

3.  A serious left hand turn accident  Serious bus/pedestrian accidents at or near a crosswalk  Chain accident rear enders  Accidents with 10 or more passengers on fixed route bus or some sort of serious vanpool accident

4.  Significant vanpool accident  2 bus vs. pedestrian accidents  One double fatality bus/motorcycle accident

5. Vanpool accident January 2008 6 passengers and 1 driver

6. Exposure Data (2000 to 2007) Full members

7.  Fixed Route went from 36 million miles to 50 million miles  Paratransit went from 8 million miles to 15 million miles  Vanpool went from 12 million miles to 20 million miles  Admin went from 3.5 million miles to 4.2 million miles

8.  2008 is estimated to be 75 million miles  2009 is estimated to be 97 million miles

9. Vehicle Data at WSTIP Vehicle Type2008200720062005 Articulated Bus108124117102 Car10112099115 Coach1450143012361168 Paratransit Vans427643686609 Truck164142119112 Van/Not Vanpool14620212875 Vanpool1950157714671456 Total4311423838523637 Vanpools are the biggest component of the fleet

10. Event Data at WSTIP 2000 to 2007 Sum of Event No.Year Description20002001200220032004200520062007Grand Total% of the total Accidents Involving Bikes3762011713670.34% Accomodation Dispute121541820600.30% Boarding & Alighting19371181161412031881559774.96% Collision w/Vehicle6867327877428679181,0481,1956,97535.42% Collison with Animal669910 1913820.42% Collison with Fixed Object1491982462842963084155872,48312.61% Equipment Maint Issues526614 419700.36% Harassed Driver214534511674603641.85% Hostile Work Enviro42280.04% IN & OUT WHEELCHAIR11222350.18% Incidents or Disputes2831813934884252393214192,74913.96% Injury on Transit Premises12510511141011780.40% Passenger Accident2602272773403083364277892,96415.05% Pedestrian Injury or Death27211724344345292401.22% Physical Assault2112142029600.30% Property Damage1529556873861821776853.48% Slip and Fell on the Bus1121961190.60% Sudden Stop (No Collison)1419475546291183191.62% Theft681691213194870.44% Vandalism7303462657854523821.94% Vehicle Damage26364698631041011396133.11% Verbal Assault12211115410.21% Wheelchair Accidents25162224272839562371.20% Grand Total1,5291,5382,0812,4102,4992,5943,0463,99819,695

11. Event Data 2000 to 2007

12. Liability Frequency Data (2000 to 2008) By Member Sum of Total ClaimsYear Member200020012002200320042005200620072008Grand Total% of the total Asotin Co PTBA110.02% Ben Franklin Transit443117 34302428242494.67% Clallam Transit210131761320721.35% Columbia County3140.08% Community Transit66116937714488119976086016.13% Cowlitz Transit Authority12360.11% Everett Transit6302912771.44% Grant Transit962211444330.62% Grays Harbor Transit1189101357106791.48% Intercity Transit2729353244344050413326.23% Island Transit10341453913520.98% Jefferson Transit611224126250.47% Kitsap Transit2935466349587170574788.96% Link Transit4568516181519961.80% Mason County Transit158812 5510.96% Pacific Transit221111190.17% Pierce Transit1871801461882081631391441451,50028.13% Pullman Transit5612439390.73% Skagit Transit10987781167731.37% Spokane Transit194171107120100989076691,02519.22% Twin Transit2255212190.36% Valley Transit11456170.32% Whatcom Transit1014231630243125282013.77% Yakima Transit77174350.66% Grand Total6116205025586615926266215425,333 63% of all liability claims come from STA, CT and Pierce

13. Severity Data (2000 -2008) Liability Claims Only Sum of IncurredYear Member200020012002200320042005200620072008Grand Total% of the total Asotin Co PTBA6,740 0.03% Ben Franklin Transit295,333146,66067,56320,073161,629101,25679,739153,6081,055,9182,081,7798.37% Clallam Transit2,7708,00800113,09911,58027,87255,786219,1150.88% Columbia County75,07927675,3550.30% Community Transit100,609703,700727,312137,242975,131302,373789,505165,565121,7914,023,22816.17% Cowlitz Transit Authority2731,0566111,9400.01% Everett Transit26,154324,595158,05111,041519,8412.09% Grant Transit78,8965,5627,37410,0250070,5651,00012,372185,7940.75% Grays Harbor Transit103,48266,4770258,17099,990026,17032,98110,507597,7782.40% Intercity Transit15,99852,86681,212135,567110,39839,379151,955132,029960,0921,679,4956.75% Island Transit53,75013,721009,78311,44934,52611,14533,622167,9960.68% Jefferson Transit92134503,493015,2380010,59530,5920.12% Kitsap Transit62,44331,449138,10467,44568,65761,441490,472176,627117,8401,214,4794.88% Link Transit1,1870097,7034,6890126,119117,016161,637508,3512.04% Mason County Transit02,7198,79618,33428,71063,4593,784125,8020.51% Pacific Transit62014,9142,000250 055018,5840.07% Pierce Transit332,831513,4671,286,655374,977772,527411,4171,075,305531,268274,1295,572,57622.39% Pullman Transit43,03512,945010,74293933,580101,2420.41% Skagit Transit19,85233,92291,49476,66918,80316,11338,1425,89614,821315,7111.27% Spokane Transit1,026,907799,883155,4001,350,757466,107406,3901,239,405155,965154,3245,755,13923.13% Twin Transit48290718,527001,7623,74825,4260.10% Valley Transit0595,40007,17224,780627,3522.52% Whatcom Transit00143,8149,378638,64239,84385,87736,27828,378982,2103.95% Yakima Transit17,32018,1696,2397,63549,3630.20% Grand Total2,095,6002,390,9722,701,4102,588,1593,366,6232,175,7304,602,8841,866,6903,097,81724,885,886 61% of all severity goes to STA, CT and Pierce

14. Average Cost of a Claim 1999 to 2007

15. Claims Department Summary 1999 to 2008 YearTotal Claims Exposure Reserves$100K EventsLiab Claims1st party$500K EventsSubrogation $ 1999355 51,241,565 $ 3,056,8232298570128,646 2000335 44,226,325 $ 3,239,64932211141121,156 2001418 45,011,216 $ 2,641,18442591590182,749 2002401 47,231,066 $ 2,159,59912521490166,102 2003395 51,451,231 $ 2,372,48342421531208,239 2004531 55,953,485 $ 2,935,74153901412155,075 200560662,725,851 $ 4,111,71934071991383,474 200668567,961,390 $ 3,665,39964871942318,000 200774470,253,439 $ 3,879,05714732710426,000 200872575,000,000 $ 5,700,00065651603257,000 Total5195 571,055,568 $ 33,761,6543535941597102,346,441 1999 to 2007 Average a year Change109.58%37%27%5.0058.72%729.82%1.43231.14%

16. Current Actuarial Estimate vs. Original Estimate

17. Subrogation Data 2001 to 2008 Sum of SubrogationYear Member20012002200320042005200620072008Grand Total Ben Franklin Transit12,53713,18721,70228,11042,11757,56854,98422,878253,084 Clallam Transit1,6302003,8102,7175,6472,23416,238 Community Transit84,38053,822109,64949,95376,22485,251146,32974,672680,281 CUBS728,57805,99314,642 Grant Transit15,9364,0525,49193826,418 Grays Harbor Transit5,9398,2715,0533,4346,72110,0174,99822344,656 Intercity Transit25,84027,49711,6331,06413,77130,07827,4667,530144,878 Island Transit3,3502,8366,9658,9564,7542,09212,5279,43150,911 Jefferson Transit1,20112,4673,72406,82524,217 Kitsap Transit16,34621,96726,58818,90947,51417,51958,9532,751210,546 Link Transit3,86810,5742,2907,22429,9972,68317,4671,68075,783 Mason County Transit2,088010,2357,00001,56220,885 Pacific Transit51,37810,74262,120 Skagit Transit2,5267,2121,5003,97501,6772,06828819,246 Spokane Transit2,59437,68870,975110,701221,958 Twin Transit5005,0683,5565,05612,4183,926030,524 Valley Transit6,4954015,752012,648 Whatcom Transit1,3514,0207,69811,7619,8893,96615,0643,33157,080 Grand Total173,274164,440203,499137,141314,679295,887426,157251,0371,966,115 Average245,764

18. Auto Liability Initial Settlement Ratios at 6 Months of Development YearReported ClaimsClosed ClaimsSettlement Rate 200278510.654 200372550.764 200496680.708 2005133910.684 20061671240.743 20071721350.785 20081461160.795

19. Claims Outcomes by Closing Method (2000 to 2007) No Pierce

20. Claims Payments by Transaction Type (2004 to 2008) No Pierce

21. Claims Payments by Transaction Type (2004 to 2008) No Pierce By Fiscal YearYear Payment Type20042005200620072008Grand Total% of the total Adjusting$121,515$205,688$137,944$134,497$148,486$748,1314.12% Appraisal Fee$2,419$3,478$5,995$4,489$7,999$24,3810.13% Arbitration Award$69,736 0.38% Attorney Legal Fees$130,121$383,052$332,658$309,359$226,745$1,381,9357.61% Atty Fees Prior to Suit$32,422$38,453$42,905$34,631$59,191$207,6021.14% Bodily Injury$1,263,208$1,853,988$4,119,672$2,042,716$852,994$10,132,57955.79% Claim Costs$3,183$4,944$11,292$1,322$31,226$51,9660.29% Claimant Expenses$10,683$2,121$27,160$11,339$137,928$189,2301.04% Depositions$5,123$2,212$3,503$8,929$2,176$21,9420.12% Expert Witness Fee$38,721$31,236$43,868$48,469$26,314$188,6081.04% Investigation Expense$7,398$6,400$920$5,854$2,654$23,2270.13% Judgement$118,298 0.65% Litigation Costs$641$43,854$135$44,6290.25% Mediation Fees$1,896$10,450$16,298$17,916$1,725$48,2840.27% Medical Expense Payment$184$216$3990.00% Medical Specials$128,176$68,003$126,160$123,371$194,030$639,7403.52% Property Damage$561,637$465,715$770,970$776,683$1,046,930$3,621,93419.94% Record Copy Services$1,411$2,539$2,673$5,176$11,7980.06% Rental Car Expense$20,739$22,739$25,313$30,374$23,695$122,8610.68% Total Loss Payment$71,983$62,311$85,453$152,128$119,981$491,8562.71% Towing and Storage$2,600$2,650$6,463$3,802$6,498$22,0130.12% Grand Total$2,401,826$3,165,676$5,802,966$3,896,584$2,894,098$18,161,150

22. Claims Analysis (2000-2008) We have 301 open claims

23. WSTIP Large Losses 2000 to 2008 Greater than $100K Sum of IncurredYear Row Labels200020012002200320042005200620072008Grand Total Ben Franklin Transit176,277138,460102,744978,8211,396,302 Clallam Transit107,360 Community Transit446,555496,645245,000769,695102,299331,4962,391,689 Everett Transit299,492110,000409,492 Grays Harbor Transit103,482211,947315,429 Intercity Transit837,954 Kitsap Transit95,200310,516405,716 Link Transit126,119115,255150,000391,374 Spokane Transit895,230414,7171,222,377270,871190,6331,045,0004,038,827 Valley Transit595,400 Whatcom Transit595,000 Grand Total1,174,989999,731496,6451,679,3241,635,5651,086,2762,112,623225,2552,074,13511,484,542 Incurred = paid + reserves - recovery

24. 3 Year Comparison from WSTIP Financials Description200720062005 Capitol Assets433,311448,815469,638 Investments819,657750,000 Liabilities 6,412,893 5,587,3515,417,532 Total Net Assets14,579,24412,601,02211,464,211 Operating Revenues7,674,5577,336,311 7,565,038 Operating Expenses Claims Paid on Current Losses4,312,3463,787,0723,551,479 Adjustment to Prior Years' Claim Reserves-1,165,427168,654-2,363,061 Excess Insurance Premiums1,941,7981,709,9171,755,339 Depreciation Expense15,50420,82317,135 Operating Expenditures1,157,287981,026908,111 Brokerage Fee96,60092,00082,688 Other Insurance Services423,571240,148493,096 Adjusting Services000 Total Operating Expense6,775,6796,999,6404,444,788 Operating Income (Loss)898,878336,6713,120,250 Non-Operating Revenues1,079,344800,140496,049 Change in Net Assets1,978,2221,136,8113,616,299

25.  Keep an appropriate distance between vehicles when driving  Avoid left hand turns  Have cameras on the buses  Continue tweaking the employee discipline process after a preventable accident