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Ortis began the meeting by relating his personal situation at Executive Transportation, including limiting costs “across the board” by taking cars off the road and scaling back his employees, with the intention of bringing them back in the future. He related a recent call with the heads of a number of federal organizations, such as United States Department of Transportation, Federal Railroad Administration, Federal Transit Administration (FTA), the Centers for Disease Control, Federal Motor Carrier Safety Administration, Federal Highway Administration, and others. The groups shared their recommendations for cleaning and sanitizing offices, vehicles, and homes, namely using a product that is at least 60 percent alcohol and wiping daily as the virus can live on hard surfaces for several days.
Ortis then gave the floor to Cummins, who updated those on the call on state inspections and renewals. Currently, MnDOT is continuing inspections as usual until officials close down the offices. Once MnDOT is closed, they will make options available for any cars that require renewal; he reassured operators that plans are in place to keep cars on the road during any shut-down.
Mercer was then invited to share what’s happening with the NLA. She communicated that the NLA has resources and information constantly being updated and added on limo.org. All are free for download to members and non-members alike. At the time of the call, the NLA was working to form a coalition with other related associations to lobby Congress as a collective unit. The first stages of that unity can be read here: (link to industry association unity article in this enews). The NLA’s lobbyist, Cornerstone Government Affairs, is also “working around the clock” to be included in any relief packages. Mercer also advised the operators on the line that the video EmpireCLS produced on cleaning practices is available free for download and distribution.
MCTA members then had an opportunity to further discuss best practices and tips based on their experiences. MCTA Vice President Bernie Fautch of Eclipse Global Transportation related that the Global Business Travel Association is echoing the same, and based on what he’s heard from experts, operators should plan on this lull lasting at least eight weeks.
A large chunk of the call was devoted to insurance matters. Jay McCloskey of Transportation Insurance Professionals said that, at the time of the call, he has been in communication with all the major industry insurance companies, and three had plans in place to help operators. He was actively proposing that companies allow ground transportation operators to surrender plates to the agent to “mothball” cars that are not on the road. Traditionally, to remove vehicles from an insurance plan, providers require a vehicle bill of sale or cancelled lease.
Leslie Rosedahl of Rosedahl Public Affairs then provided a political update. With state legislature moved to an “on-call basis,” essentially a de facto recess, pressure is solely on the Governor Tim Walz to pass any action. In the past few days, Walz closed bars, restaurants, and public meeting spaces, and has suspended the employer charge for unemployment.
Before the call was concluded, the members were advised to look at restructuring their debt, as banks are still extending credit and lending requirements are loose.
The MCTA plan more conference calls to share news and updates regarding the COVID-19 pandemic.
UPDATE (3.21): The Minnesota Department of Employment and Economic Development (DEED) announced the opening of Small Business Administration loans under the Economic Injury Disaster Loan program. This program can provide low-interest loans of up to $2 million to small businesses and private nonprofits, and can go toward working capital to meet needs including payroll, accounts payable, and fixed debt payments that can’t be paid due to the COVID-19 pandemic. The current interest rate is 3.75% for small businesses, with repayment options up to 30 years. To apply visit disasterloan.sba.gov/ela/.
Visit mnlimo.org for more information.
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The nearly two-hour call included reps from PNC Bank, TIB Insurance, and Shriver Insurance, as well as Kyle Hammerschmidt of the NLA, Christina Davis of The LMC Groups, Andrew Newhart of the American Bus Association, Ken Presley of the United Motorcoach Association, and Cherie Hime of the Midwest Bus and Motorcoach Association.
The call was coordinated with the Midwest Bus & Motorcoach Association and held at Infinity Transportation’s headquarters, where a handful of ILLBA members were present to ask the speakers questions. ILLBA President Tracy Raimer of Windy City Limousine & Bus spearheaded the conversation, which included insurance, financial, and HR issues, as well as what’s happening on the national level.
The biggest takeaway: We’re all in this together, and the industry associations and leaders are working day and night on assisting and representing you.
Some of the key points of the call included:
- The majority of banks are well capitalized and with the support of the federal government, money should be available quickly to businesses. Rates are super low, thanks to the Fed Bank’s rate cut.
- Discuss all options with lenders that keep your payments manageable but also don’t interrupt your availability of credit. Now is the time to discuss lines of credit before income statement represents sharp drops. Lenders want to work with you.
- Insurers representing this industry are looking at options for operators; the majority at the time of the call had programs to preserve cash. The big shift is to park vehicles and remove plates: Make sure you are doing this properly! Talk with your insurance broker/company before moving forward with this, as well as state and local officials. Do NOT simply rely on suggestions from other operators.
- Ideally, find ways to work with staff so that you don’t lose your star players.
- Furloughs—temporary situations with the intention of bringing team members back—might be the best way to go for many operators. Furloughs are reassessed after a certain period of time and in the meantime, employees can collect unemployment. Layoffs mean the work isn’t available and the employee might not return. Laid-off employees are eligible for COBRA coverage if they received benefits from you; check with your benefits administrator on how to handle furloughed employees.
- The national associations are leading the charge in Washington to make sure that Congress is considering transportation an essential and vital industry as critically as the airlines (which recently received $50B in aid and loans). Together, they are fighting for emergency funding for all modes of transportation, including livery, motorcoaches, and paratransit operations.
Raimer offered special thanks to all of the speakers and industry association representatives who shared the latest information, in addition to ILLBA Executive Director Paula DeBiasi for helping to arrange the call and Api Dogan of Infinity Transportation for providing the technology and meeting space. Yes, social distancing was practiced.
ILLBA will keep members informed via email and on Facebook as news breaks.
Visit illinoislimousineassociation.com for more information.
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After a short cocktail hour NELA Executive Director Rick Szilagyi welcomed the evening’s first guest speaker, Massachusetts State Senator Joseph Boncore (D). As side chair of the transportation committee, Boncore is an ally of NELA and supportive of their battles with TNC. Recently, Boncore introduced legislation S.2032 that would require all for-hire drivers to be part of a drug and alcohol screening program. Szilagyi testified on the bill on January 17 at the state house, and it remains in committee. Boncore is also supportive of the association’s move to make fingerprinting mandatory for all TNC drivers.
After some words from the sponsors, NELA Board Member Brett Barenholtz of Above All Transportation/Boston Car delivered an address to the association entitled Crisis Management in the Livery Industry.
“On Monday night, Brett called me and asked if he could have a few minutes to talk to the members about what they can do to help themselves during the coronavirus,” says Szilagyi. “As the NLA Secretary, he’s really our local conduit to what’s happening nationally. He said that this isn’t the first time we’ve been challenged, but it’s really about managing these tough times.”
Barenholtz’s well-received presentation focused on ways that operators can cut costs during the unprecedented work stoppage caused by the pandemic. He advised members to contact their lenders, whether it’s insurance, auto loans, or real estate, and work with them to reduce or defer payments. Barenholtz also advised the operators to manage employee schedules to reduce payroll and even consider condensing hours of operation. All was not gloom and doom during the presentation, as Barenholtz reassured the attendees that there are still opportunities for work during this time, particularly with clients reluctant to fly or use public transportation. Calming your clients and informing them about what you are doing to mitigate transmission of COVID-19 can help in maintaining their business.
The evening’s final presentation was from Nadine Boone and Peter Kontakos of the Federal Small Business Association, who offered methods on how operators can get government contracts. Their talk showed the attendees how to create a profile in the SAM.gov system.
As is custom to NELA meetings, before the meeting concluded, there were several raffles. A 50/50 prize of $165 was won by Antonio Giorgi of T-Mobile. NELA Vice President Joe Cardillo of AOT Global was the winner of a Bose sound bar, while Desiree McCoy of Great Bay Limousine won a Google Home device. Lastly, Dan Morgan of Dedicated Funding won an assortment of scratch-off lottery tickets.
Visit nelivery.org for more information.
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