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For several years, TNCs and the taxi, black car, and livery industries have co-existed mostly peacefully on a nearly level playing field within the city of New York, but Gov. Cuomo and several state legislators have, on several occasions, pushed to expand TNC operations statewide. Cuomo said that his hefty $152.3 billion budget focuses heavily on the middle class, which includes increased spending for schools, tuition-free in-state college for families making $125,000 or less, tax cuts, and a $10 billion overhaul of Kennedy International Airport (JFK). The New York Times reports that it also includes $500 million in economic development for Buffalo, and two airports in Syracuse and Plattsburgh.
The impact of the proposed budget on TNCs was still being unpacked by BCAC Executive Director Ira Goldstein and the BCAC board at the time of the meeting, although he and Attorney Matt Daus of Windels Marx, who also spoke at the meeting, issued a dire call to action to all members to be actively involved in efforts to amend the budget by contacting local legislators.
In the governor’s plan, Uber and Lyft would be green-lighted to operate throughout the state, but especially in the cities of Buffalo, Albany, and Rochester. TNC drivers would be regulated by the state’s Department of Motor Vehicles, face a background check through their company, and be forced to comply with anti-discrimination standards. They would also be subject to a fee for a new workers’ compensation fund dedicated specifically for TNC drivers. Insurance requirements were expected to be significantly lower than those for taxis and other for-hire vehicles (FHVs), and fingerprinting would not be required like other FHV drivers. Uber and Lyft, which obviously stand to benefit greatly, have come out in full support of the governor’s budget.
“I’m normally optimistic, but I am worried about this budget,” said Daus. “If we do nothing, the industry as we know it could be dead within a few years,” noting that Upstate could be hit especially hard because TNCs do not currently operate legally north of the city.
He added that it’s imperative that BCAC members talk to one on one with their clients—especially travel managers who are receiving pressure from their travelers to allow the use of TNCs—about the limitations of TNCs and the impact that the less-regulated transportation providers could have on their passengers regarding duty of care.
The meeting also included an update on driver fatigue rules that were passed last summer but are facing an overhaul thanks to pressure from industry associations. Current allows for up to 10 hours of drive time within a 24-hour period, and as long as a company has an electronic system that delineates between drive and wait time, periods without a passenger are not penalized.
Additionally, the Port Authority of New York & New Jersey, which operates many of the major Hudson River crossings and all three area airports (Newark Liberty, JFK, and LaGuardia), has proposed a fee for all FHV pickups and drop-offs. Goldstein mentioned that the current rumored fee is $4, although nothing has been finalized but was expected as soon as Q2 2017. The New York Times reports that $7 billion of the $10 billion proposed spending for JFK Airport’s infrastructure will come from private sources, leaving a $3 billion hole that could be filled by fees and other taxes.
We’ll have more information about the governor’s proposed budget and other factors impacting FHVs in the February issue of the magazine.
Visit nybcac.org for more information.
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LANJ President Jason Sharenow of Broadway Elite Chauffeured Services Worldwide started the meeting by thanking the vendor sponsors present and introducing the association’s 2017 board of directors:
President: Jason Sharenow of Broadway Elite Chauffeured Services Worldwide
1st Vice President and Treasurer: Jon Epstein of Royal Coachman Worldwide
2nd Vice President: Jeff Brodsly of Chosen Payments
Secretary: Karen Gajda of Country Club Transportation
Board: Anthony Azara of Avalon Chauffeured Services, Pete Corelli of Lakeview Custom Coach, Howard Gogel of My Limousine Service, Scott Greenwald AAA Worldwide Transportation, John Maziarz of Arrive in Style Transportation, Brian O’Neill of Grech Motors, Michael Renehan of Concorde Worldwide, Steve Rhoads of Rhoads Limousine (honorary), Tim Rose of Flyte Tyme Worldwide Transportation, Bob Schiavo of Albert’s Transportation, David Seelinger of EmpireCLS, Eddie Somers of Arrow Limousine, Christian Stochholm of New Jersey Limo Finder, Barry Trabb of Complete Fleet Livery Sales, and CD’s Chris Weiss.
New board members include Sam Emam of Chauffeurs Limo Corp. and Joe Guilino of Gem Limousine Worldwide, who is replacing Barb Chirico as she retires from the LANJ board after many years of service.
Next, Sharenow welcomed three of LANJ’s newest members to the podium as part of the meeting’s Member Spotlight. Randall Willms of Minutemen Limousine and Car Service, Rob Mains of Vroom Fleet, and affiliate member Steve Rhoads of Rhoads Transportation each got the opportunity to introduce themselves and describe their services to the room.
The afternoon’s educational component—Financing Need-to-Know for 2017—was next on the agenda, providing timely and useful information to the members. Moderated by Sharenow, the session featured pointers from two respected financiers who have served the industry for years, Eric Coolbaugh of Access Commercial Capital and Billy Reitman of Intek Auto Leasing. Coolbaugh and Reitman provided their fiscal forecasts for the coming year and provided valuable tips for securing loans. Chief among their insights were the importance of developing strong relationships with your leasers and the necessity of reinventing your business as the industry changes.
Legislation news is always a hot topic at LANJ meetings, and Sharenow provided an update of happenings at the state house. The long-in-development TNC Bill (SB-2179) recently hit a snag as N.J. Governor Chris Christie balked at the fingerprinting requirements proposed by the bill.
Sharenow was much more enthusiastic about the LIMO Bill (SB-2315), which will create parity with taxis and TNCs by eliminating the sales tax currently required by the chauffeured ground transportation industry. This bill has many supporters in the state house, but Sharenow encouraged all LANJ members and supporters to write to the governor in support of the legislation. Less popular was the news that the Port Authority is considering adopting airport fees and licensing fees to all vehicles that do pickups at the N.J. and N.Y. airports. While airport fees are minimal, the licensing fees could approach six figures and be prohibitive for many operators. Following the meeting, Sharenow and Epstein held a conference call with other operators to discuss the impending levies. A meeting with the Port Authority is planned in the next 30 days.
The meeting closed with a few words from Weiss, who spoke about CD’s newly redesigned website and June’s Executive Retreat in San Francisco and Napa Valley. A pass was raffled to CD’s Trade Show and Conference to be held in Orlando from October 22-25, which was won by Epstein.
LANJ’s next meeting is scheduled for late March with a location to be determined. In addition, Corelli is planning to hold a meeting for South Jersey-based operators on February 8.
Visit lanj.org for more information.
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After a lavishly appointed cocktail hour, attendees took to a ballroom that was festooned with red and green decorations for a DJ’d evening featuring a smorgasbord of food, raffles, a photobooth, and, of course, an array of awards. There, LILA President Bill Goerl of Clique Limousines took to the mic, expressing his sincere gratitude to those who have trusted him to lead the association and helped him along the way.
“Thank you all for making one of my dreams come true. I always wanted to be president of this association,” Goerl said, bringing up LILA’s executive board one by one to share anecdotes about their role in the association’s success and sharing the limelight with them in recognition of their dedication and contributions.
It was then time to begin the awards portion of the evening, with LILA 2nd Vice President Matt Silver of Ultimate Class Limousines emceeing the presentation. Plaques were awarded to companies that have been LILA members for 10-19 years, 20-29 years, and those who have been involved with its safety initiatives.
After a number of raffle winners claimed their prizes—ranging from wine, technology, dinner, and a spa outing—and as dessert and dancing continued the night’s theme of camaraderie, it was time to bestow awards upon those who have been LILA members for 30 years or more, plus individuals whose efforts have helped make LILA the association it is today. LILA’s 1st Year Director Douglas Schwartz of Executive Limousine was named Man of the Year while Treasurer Mike Fargnoli was heralded as the association’s unsung hero.
Before the evening concluded with an hour of dancing and socializing, Maccar raffled off a pass to the CD 2017 Show in Orlando. Chris Cannella, son of LILA 1st Vice Presdudent Paul Cannella of Concord Limousine Services/Krystal Bus Tours, was the lucky winner.
The next LILA membership meeting will be March 28, with the association’s ongoing Chauffeur Training Program scheduled for March 14.
Visit nslali.com for more information.
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