July 22, 2009

LCT: Give us some background about Royal Coachman.

Jon Epstein: Royal Coachman was started in 1969 by my father, Robert Epstein, as an offshoot of his primary business which was a travel agency. It’s a typical story of the tail wagging the dog. The limousine company became very successful and soon became the primary business. In 1969, the limousine industry was a relatively new thing. Today, we are a 120-vehicle fleet based in Denville, N.J.

LCT: When did you get involved in the business?

Jon Epstein: Like most limousine families, I started when I was eight washing cars. I did payroll, dispatch; you name it. After college, I came into the business full time. My sister, Amy Birnbaum started the year before me. We purchased the company from our dad in 2004.

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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.

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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:

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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.