Dear Martin,

Thank you for the wonderful LCT articles highlighting both the challenges and optimism evident at the GCLA meeting in San Diego, last week. (Article attached).

Limousine companies in California are encouraged by the successes the GCLA is achieving legislatively, one by one, together with morale of the owners who actively participate in protecting their own company, by their membership and fellowship in the GCLA and donate their time and money to protect not only their own business, but the 6,000 other limousine companies operating in California.

The first two 2009 meetings of the Greater California Livery Association brought plenty of hard reality and practical advice related to the ever-deepening recession and industry slowdown. Veteran operators held a panel discussion on industry survival. Hosted by GCLA President Alan Shanedling, the panel consisted of Steve Levin, owner of Temecula, Calif.-based Sterling Rose Limousine; Robert Vaughn, owner of Best Worldwide Chauffeured Transportation of Huntington Beach, Calif.; and Chris Hundley, owner of Limousine Connection of North Hollywood, Calif., Chris Quinn, owner of Corporate Transportation Solutions of Sacramento, Rich Azzolino, General Manager of Gateway Limousines.

Overall, the operators don't believe an economic turnaround will become apparent until 2011. That means hard choices ahead as operators take some hard hits. A sampling of insights and observations:

During the first quarter of 2009, CPUC took the following enforcement actions against limousine, bus, and shuttle companies for violations of the Public Utilities Code and CPUC rules and regulations, including General Order (G.O.) 157-D. Administrative Citation: Eight companies were cited and fined (totaling $15,700) for violations ranging from:

1. Engaged employees without procuring evidence of workers' compensation insurance
2. Failed to comply with G.O. 157 rules (no prearrangement, waybills)
3. Failed to enroll drivers in a mandatory drug and alcohol program
4. Failed to enroll drivers in DMV Pull Notice program
5. Operated without a valid authority (suspension, revocation, expiration, or unlicensed).

Criminal Filing: CPUC staff participated in a joint sting operation with the San Diego Police Department (SDPD), Southern Division to curtail the unlicensed activities of illegal passenger carrier operations at the San Ysidro Border Crossings. The operation resulted in SDPD Southern Division filing criminal charges against six passenger carriers for operating without a valid Certificate of Public Convenience and Necessity (CPCN), in violation of Public Utilities Code Section 1031. Arraignment is scheduled for June 5, 2009, in San Diego Superior Court.

Phone Disconnect: In its ongoing efforts to clamp down on unlicensed passenger carriers, the CPUC had telephone service shut off to three limousine companies operating in California without a charter-party permit. Public Utilities Code Section 5371.6 provides that any person aggrieved by this action may file a complaint with the CPUC and request a hearing.

1. Jerome Biel dba Personal Driver, Encinitas (Unlicensed): Personal Driver has unlawfully advertised its transportation services in various media including flyers, business cards, and community bulletin boards. Notwithstanding CPUC staff cease and desist letters directing the defendant to immediately cease all unlawful advertisements, the defendant continues to violate the law as evidenced by a CPUC staff sting call. On December 11, 2008, CPUC staff obtained an order of "Finding of Probable Cause" signed by San Diego County Superior Court Judge Frank Brown. The order finds that telephone service at two numbers was being used to violate criminal laws in the State of California.

2. Jaye Mark Uribe and Salvador Pareja dba Ace Limousine Service, Aces To Aces Limousine, and A-1 Del Mar Limousine, Monterey Park (Unlicensed): The carrier advertised their unlicensed limousine service in various media including the Internet and the AT&T Yellow Pages directories (Greater Los Angeles September 2008, Greater San Gabriel Valley June 2008, Alhambra February 2008, and Pasadena February 2008). The carrier displayed an invalid permit number (TCP 7043) in its advertisements. Notwithstanding CPUC staff cease and desist letters directing carrier to immediately cease all unlawful advertisements and operations, the carrier continues to violate the law as evidenced by a consumer complaint and sting calls conducted by CPUC staff. On January 23, 2009, CPUC staff obtained an order of "Finding of Probable Cause" signed by Los Angeles County Superior Court Judge Maral Injejikian. The order finds that telephone service at five numbers was being used to violate criminal laws in the State of California.

3. Absolute Limousine, LLC; Ritz Limousine, LLC; Mallory Mohr and Thomas Wetzel dba Absolute Limo and dba Ritz Limousine, Aliso Viejo (Unlicensed): Thomas Lee Wetzel has a history of violating the CPUC's rules and regulations. Notwithstanding administrative, civil, and criminal actions taken against Wetzel, he formed new companies and continues to willfully operate without CPUC authority. The carrier unlawfully advertised its limousine services on the Internet and has a listing in two issues of the AT&T Yellow Pages directories. On February 25, 2009, CPUC staff obtained an order of "Finding of Probable Cause" signed by Superior Court of Orange County Judge Craig E. Robison. The order finds that telephone service at three numbers and one fax number was being used to violate criminal laws in the State of California.

The Greater California Livery Association GCLA is co-sponsoring a bill with the California Public Utilities Commission in the State legislation that would coordinate one background check for all drivers that would be accepted at all major airports in California. GCLA Lobbyist Gregg Cook of Government Affairs Consulting updated operators at a GCLA March meeting In San Francisco about the bill. It would spare operators the expense and hassle of getting separate background checks and badges at each major airport for access to public areas to pick up clients.

With a state background badging program, individual airports would not be able to regulate beyond what the State stipulates and allows, Cook said. The CPUC would design and issue the badges. Cook said the bill is at the negotiating state, with the GCLA attempting to get all airports on board with the concept. Instead of four background checks at Northern California airports and six at Southern California airports, operators could get one badge for one fee and avoid the expensive bureaucratic procedures, he said.

Charter Party Carrier Permit Program:

More than 2,200 companies and 11, 000 charter party vehicles are authorized to operate at LAX. All charter part carriers that conduct business at LAX are required to have a current executed license agreement with the Department of Airports, display a valid vehicle decal and have a functioning AVI transponder affixed to each vehicle. Due to the annul renewal process Landside Operations has temporarily suspended acceptance of new applications to the ground transportation program at LAX.

This years renewal process was sent out in four phases beginning in mid March and will be ending in late May 2009. Once documents are received and processed, the Permits Staff will phone to schedule an appointment for vehicle inspection and decal application. Landside Operations Staff has been working with operators with the new simplified renewal process. LAX Landside expects to complete this year's re-decal process by June. Companies that have not responded and/or submitted required documents will be processed for termination. Vehicles that are not re-decaled with a new 2010 permit sticker will be denied at the Charter Booth.

Operating with expired decals may result in driver citation, vehicle impound, and/or permanent revocation of your Non Exclusive License Agreement. Completed packages can be delivered to LAX Landside Operations Permits Office 7301 World Way west 1st Floor, Los Angeles, California 90045, Office Hours Monday through Friday 7:30am- 3:30 pm.

Last month. A misnamed and potentially revolutionary new law, the Employee Free Choice Act” (EFCA), was introduced in Congress. This legislation, first introduced in 2007, would fundamentally change the way unions become certified as collective bargaining representatives for employees. Currently if a union wants to represent a group of employees, it must obtain signatures on “authorization cards” from at least 30 percent of the affected employees. It then must petition the National Labor Relations Board to hold a secret ballot election among the employees, and only if the union wins a majority of votes in that election will it be certified.

RFCA would eliminate the secret ballot election. Instead a union would be certified as bargaining representative if it presented authorization cards signed by a majority of the employees in the bargaining unit. There are two problems with this. One is the potential for unions to mislead and/or intimidate employees to sign cards. If that happens now, those employees still have the opportunity to vote against the union in the secret ballot election even if they signed an authorization card. Under EFCA, those employees would not have a chance to make their true feelings known. Second, EFCA virtually eliminates the employer's opportunity to exercise its free speech rights and educate employees concerning the disadvantages of union representation, such as mandatory union dues, strikes and union corruption.

EFCA would also change how union contracts are negotiated once a union is certified as the bargaining representative. Presently, the union and the employer must bargain in good faith toward a contract, but neither side is required to agree to the other's proposals, and if, after a year has elapsed, no contract has been reached and it appears the union no longer has the support of a majority of the employees, the employer may withdraw recognition of the union. Under EFCA, if no agreement on a contract is reached within 90 days, mediation, arbitration will be required, with the arbitrator dictating the terms of the agreement.

EFCA also imposes fines and penalties on employers found to have committed "unfair labor practices" whereas currently the only monetary remedy that can be imposed is to require the employer to pay the lostIf enacted, EFCA would likely have a dramatic effect on labor-management relations in the U.S.-which why wages of an employee wrongfully terminated for union activity.

it is the number one legislative priority of organized labor this year. EFCA passed the House of Representatives last year by a large margin and narrowly missed passing the Senate. With a larger Democratic majority in the Senate this year and a pro-labor Democratic President, the chances of EFCA's passing are substantial. The only question is whether it will be high enough on the list of priorities of Congress and the President this year. As soon as the economy shows signs of improving, however, this legislation will likely be pushed to the forefront.

If EFCA is enacted, many companies previously not the object of union attention will likely be targeted for unionization. Employers therefore should be assessing whether they are vulnerable to a union organizing drive.

James McDonald, Jr., Managing Partner
Fisher & Phillips LLP

"If enacted, EFCA would likely have a dramatic effect on labor-management relations in the U.S. which is why it is the number one legislative priority of organized labor this year"

 

 

Many businesses are still struggling. The economic downturn has hit our industry harder than most. A reasonable question for limousine operators to ask is, "why should I join GCLA, especially now." The answer: because this is a most important time in our industry. This is the time to work with all parties to increase efficiency and cut costs, not service.

As the GCLA Board of Directors began planning for 2009, we obviously recognized the difficult situation our industry finds itself in as the result of the economic downtown. We are committed to making GCLA the most valuable asset we can to our members. And we want our members, and future members to understand that GCLA is a key part of their business that they can't do without.

Over the past 3 years, we have worked with the California Public Utilities Commission to assist us in clearly defining the extent of CPUC regulatory authority for other public jurisdictions. That single effort has saved limousine operators 10's of thousands of dollars. We've worked with the CPUC to increase, and make more effective, their enforcement role regarding illegal operators. We've worked the California Legislature to update California law to reflect our business needs in the 21st Century. We've also been successful in defeating legislation that would have dramatically increased local government and airport authority regulation. In addition, we've been working closely with airport landside operations personnel to have a voice in airport regulation and penalty proposals. Take a look at our website: www.gcla.org to learn more about the issues that GCLA is engaged in, on your behalf, today.

GCLA has been tremendously successful in the recent past. But success didn't happen by itself. We rely on our members participation, involvement and support. Involvement is the key. Some think they need only write a check and that takes care of everything that needs to happen. That's not the case. Of course we need your checks, but equally important, we need you to give of your time and energy. GCLA will not continue its record of success without your participation. GCLA needs you, and you and your business need a healthy GCLA.

Alan Shanedling
Greater California Livery Association GCLA
President

S. 463 TARP Taxpayer Protection & Corporate Responsibility Act

 

Dear Senator Kerry,

The Greater California Livery Association represents the 5000 limousine and sedan operators in California. I am writing to you on their behalf, as President of the Association.

Recently you introduced S. 463, legislation to impose limitations on certain expenditures by participants in the Troubled Asset Relief Program (TARP). Your legislation is very narrow in scope and all encompassing in perception. Specifically, as I read the legislation, it would prohibit recipients of funds authorized by TARP from sponsoring, hosting, or paying for entertainment or holiday events during the calendar year, or the next occurring calendar year, in which TARP assistance was received.

The intent of your legislation is laudable. The result is having a devastating impact on our industry. As you know all to well, in politics perception is reality. You would be amazed, and I trust dismayed, to learn of the impact your legislation is having on the California economy. Like your home state of Massachusetts, California's economy is, in large measure, based on robust tourism. The dampening affect of your legislation is resulting in numerous cancellations of meetings, conferences, conventions, and trade shows. Clearly, this was not the intent of the bill, but the business and industrial leaders of our nation are fearful that their integrity may be called into question should they host or sponsor events identified in your bill.

Senator, I urge you, on behalf of my industry in particular and California's travel and tourism industries in general, to tone down the rhetoric and support American commerce. We are depending upon you.

Alan Shanedling, President
Greater California Livery Association GCLA

 

When the lights go out in the major cities across America I can guarantee you the American people will not care about "failed" Government bailouts, TARP Money, executive bonuses or compensation and least of all who is to blame. Most of us have gone through the four (4) stages of grief: Shock, Denial, Grief and Acceptance.

Senator John McCain (R-AZ) said yesterday on Fox News, that it is probable that the Government should have let AIG go bankrupt and maybe the Government should have. I don't pretend to know.

What I do know is the Government and the Media should stop their feeding frenzy which is devastating to the US travel Industry. The Travel industry lost 200,000 job in 2008; 247,000 more jobs are estimated to be lost in 2009. Hotels, restaurants, taxis, airlines, cruise lines, buses, and limousine companies are being destroyed at an alarming rate because of the unending Media coverage of AIG. As usual, no one in Government is responsible and the Government and Media are looking for someone to blame for the irresponsible handling of the TARP money......The people get it. The money is gone!

But what we don't get is why the Government and Media is "fiddling" while our cities are "teetering" on disaster. Can you please give us some information on that looming crisis?

Jonna Sabroff, Executive Vice President / Legislative Chairman

 

Senator John Kerry (D-MA) is proposing legislation that would ban all 421firms including the nation's largest banks that received money from the Troubled Assets Relief Program (TARP) from hosting, sponsoring or paying for conferences, holiday parties and entertainment events.

If this legislation is passed I don't need to tell you the profound impact it would have on the business travel industry and the nation's economy. This legislation would not only impact the affected companies, it would also have a chilling, immediate impact on all companies.

This media driven witch-hunt is scaring companies that have never taken a cent of TARP funds to cancel meetings because of the negative images being portrayed. This hurts travel managers, hotels, airlines, rental cars, EVERYONE! It is estimated that without the jobs generated by meetings and conventions unemployment would jump from 7.6% to 8.2%!

You, as the expert in business travel, must educate Congress on the importance of managed travel and the benefits it brings. NBTA has issued a set of guidelines to the U.S. Treasury for effective managed travel based on your practices. You have made travel for meetings and events a cost effective tool that help businesses grow. We need to give these real world practices time to work.

We can't afford negative news stories to drive Congress to manage travel. You have to make sure our government knows that.

Kevin Maguire, President & CEO
National Business Travel Association

 

I would like to share with you the most recent news regarding the "Meetings Mean Business" Campaign. The following message from the U.S. Travel Association is evidence that the industry's combined efforts are beginning to change Washington, D.C.'s attitude towards business travel. LA INC. continues to work closely with the U.S. Travel Association to spread the word about this important campaign and will keep you informed of new developments.

Thank you to those who have participated in outreach regarding this issue. We encourage everyone to become involved in the "Meetings Mean Business" campaign by contacting congressional representatives and communicating to them how important this industry is to our city.

Sincerely,
Mark Liberman, President & CEO
LA INC. The Los Angeles Convention and Visitors Bureau