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August 1, 2017
Safety fitness system study validates UMA’s concerns
WASHINGTON — The United its features need improvement. But commercial motor carriers ty fitness rating system based on its proposed rule, saying it was
Motorcoach Association’s concerns “The report confirms many of have long contended that the sys- scores generated by the agency’s awaiting the results of the National
about the federal compliance scoring UMA’s concerns relating to dispari- tem was flawed and inappropriate Compliance, Safety, Accountabili- Academies study. And, after the
system for motor carriers were vali- ties contained in the SMS,” said for passenger carriers. Congress ty (CSA) program. SMS is part of study was completed, FMSCA
dated by a recent report from the Na- UMA president and CEO Stacy Tet- responded to such complaints two the CSA program. said it has accepted the conclu-
tional Academies of Sciences, Engi- schner. “UMA has been particularly years ago by mandating the SMS A coalition of groups repre- sions and plans to move forward
neering, and Medicine. concerned about how small fleet op- study as part of the Fixing Ameri- senting property and passenger with implementation. It is required
The report about the Federal erators can be adversely affected.” ca’s Surf ace Transpor tation carriers, led by the UMA, sent a to submit an action plan to
Motor Carrier Safety Administra- FMCSA implemented SMS to (FAST) Act of 2015. letter to Secretary of Transporta- Congress in 120 days.
tion’s Safety Measurement System identify commercial motor vehi- Despite the mandate, FMCSA tion Elaine Chao last spring asking The 132-page study was con-
(SMS) described the system as “con- cle carriers at high risk for future issued a proposed rule last year to that she rescind the proposed rule. ducted over the past 15 months by
ceptually sound” but said several of crashes. establish a new motor carrier safe- In March, FMCSA withdrew CONTINUED ON PAGE 10 c
Branson rolls out red carpet
for motorcoaches, drivers
BRANSON, Mo. — Its have green rooms for them as
star-studded days have passed, but well.”
Branson remains one of the coun- The bureau’s marketing firm
try’s most popular — and mo- estimated visitation at a record 8.8
torcoach friendly — tour to 9 million in 2016. If the Mis-
destinations. souri Ozark Mountains region
“Last year we welcomed in ex- were a country, it would have
cess of 8 million visitors and 7 per- placed just behind Egypt (9.3 mil-
cent were coming by motorcoach,” lion) as an international tourist
said Lynn Berry, director of com- destination.
munications at the Branson/Lakes From 1996 to 2002, Branson
Area Convention and Visitors was considered one of the coun-
Bureau. try’s top three motorcoach desti-
“We have motorcoach parking nations, with tour buses delivering
down after 25 years,” Berry said. around 15 percent of visitors to
“We treat our drivers with a red the area’s shows, lakes and out-
carpet. Of course drivers enjoy door activity parks, Berry said.
seeing the same shows as their “We know we are probably
passengers, but if they do want to still one of the top 10 motorcoach A tour bus operated by Mid-American Coaches of Washington, Mo., is parked outside one of the many theaters
sit down and get comfortable, we in Branson, Mo., which local tourism officials say is among the top 10 motorcoach destinations in the country.
CONTINUED ON PAGE 12 c
Third-party inspections for NCAA certification extended
WOODRIDGE, Ill. — The Go fee structure charged motorcoach cation plan has been controversial sociation and the American Bus government can do that. It is not a
Ground transportation manage- carriers to be inspected and ap- since it was instituted in 2011. Association to ask them to join straightforward, moral business
ment company announced a five- proved for NCAA charters. After Go Ground announced a them in opposition. practice,” Garrett said.
year extension of its agreement to It also will drop a waiver that continuation of its NCAA relation- “We are reaching out to other “If we don’t say something
certify motorcoach operators for permitted college teams to use ship through the 2021 college ath- states to ask that their members about this it is only going to get
post-season sports travel conduct- their preferred operators in the letics season, members of the Mo- not sign up,” said Bob Garrett, worse. Maybe the schools will
ed by the National Collegiate Ath- post-season if that carrier had torcoach Association of South president of the South Carolina as- think it’s smart and they will start
letic Association. achieved a Level I rating from the Carolina voted to opt out. sociation and Sunshine Travel & to do it, too.”
Some colleges and universities U.S. Department of Defense in- The 42 carrier members also Express in Lancaster. Go Ground’s statement an-
follow the Go Ground certification spection protocol for military voted unanimously to draft a letter “This inspection company can- nouncing the NCAA extension
protocol. charters. to other state motorcoach associa- not give you or take away your op- called its arrangement “the highest
Go Ground has changed the The Go Ground fee-for-certifi- tions, the United Motorcoach As- erating authority. Only the federal CONTINUED ON PAGE 14 c
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Bus & Motorcoach News INDUSTRY NEWS August 1, 2017 3
Majority of Americans believe their roads are unsafe
NEW YORK CITY — While For slightly more than half of said Ananth Prasad, transportation best way to reduce congestion. The HNTB survey also found
debate over the adoption of a major Americans (52 percent), the best practice leader and senior vice pres- Adding capacity to critical corri- that for 62 percent of Americans,
infrastructure-funding plan drags way to address highway safety is ident at HNTB. “It is imperative dors was supported by 40 percent; the priority for new transportation
on in Congress, Americans are through enforcement of traff ic that we invest needed resources into providing timely information about technologies should be to reduce
making it clear they want to see laws, such as those for speeding our entire surface transportation traffic conditions, alternate modes accidents and increase safety.
some action on fixing the nation’s and drunk driving. network of highways, bridges and of travel and alternate routes was Almost half of the respondents
highways and bridges. Other approaches include en- rail systems. favored by 36 percent; and 30 per- said the use of connected vehicle
According to a recent survey by couraging automobile manufactur- “But we must do more than just cent supported providing technolo- technologies would increase highway
infrastructure firm HNTB Corp., ers to make new safety technolo- repair our existing infrastructure re- gy, vehicles and roadways that im- safety and reduce traffic accidents.
most Americans have safety con- gies standard equipment, using quired for today,” Prasad said. “Poli- prove traffic flow. The HNTB survey also asked
cerns when driving on their local higher safety standards when build- cymakers should establish clear pri- “State departments of transpor- about the technologies drivers want
roads and bridges. ing or improving roads, and making orities and make smart investments tation are working hard to find and in their personal vehicles. The top
The survey, “Roadway Safety low-cost improvements such as sig- to create transportation systems ca- implement solutions that can help responses included blind spot noti-
and Congestion — 2017,” found nage, enhanced pavement markings pable of meeting future demands decrease congestion, but are ham- fication (63 percent), more infor-
that while 92 percent of Americans and guardrails. and growing our economic strength.” pered by needs outpacing budgets,” mation on road conditions (57 per-
believe it is extremely or very im- “Americans expect and want a Almost half (48 percent) of the Prasad said. “Federal funding iden- cent), the ability to know when
portant to maintain existing high- surface transportation network that survey’s respondents said providing tified by the current administration vehicles are too close or approach-
way and bridge infrastructure to im- delivers safe and reliable travel,” more public transportation is the is needed now.” ing quickly (55 percent), autono-
prove safety and reduce congestion, mous automatic emergency brak-
just 35 percent said they consider
their local highways and bridges to
be extremely or very safe.
Quaint town No. 1 Canadian spot ing (45 percent), and warning that
vehicle speed is dangerous for the
driving conditions (39 percent).
Fifty-one percent said their ST. ANDREWS, New Bruns- writers and experts to nominate places like Banff and Vancouver Prasad said the need for more
roads and bridges are only some- wick — When Americans think some of the best destinations in and Quebec City,” Mayor Doug infrastructure improvements result-
what safe. Canadian tourist attractions, they Canada. The list included 20 towns Naish told CTV Atlantic. ed in the nation receiving a D+
A large majority (85 percent) of generally point to Niagara Falls or and cities from coast to coast. “It’s just still sinking in, I grade by the American Society of
the survey respondents agreed that Vancouver or Montreal. The top picks were then hand- think, for a lot of us.” Civil Engineers’ 2017 Infrastruc-
increased traffic congestion direct- Yet St. Andrews, a quaint New ed over to online readers, who The mayor said he is a little ture Report Card. And, last year,
ly contributes to highway fatalities, Brunswick town with 1,800 resi- voted on their favorite travel worried that tourists could over- voters in 34 states agreed to fund
and six in 10 said decreasing traffic dents, beat out some of Canada’s hotspots and gave St. Andrews- run the town. local transportation projects.
injuries and fatalities and traffic best-known attractions to be by-the-Sea the top spot. “We don’t want 50,000 more “States are stepping up to the
congestion should be the nation’s named the No. 1 place to visit by Even the town’s mayor was people showing up on the same plate and doing their part,” she said.
most important surface transporta- USA Today. surprised. “I still didn’t think that day,” he said. “It’s a great problem “We need the federal government
tion priorities. The publication asked travel we’d be in the same league with to have.” to do the same.”
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4 August 1, 2017 Bus & Motorcoach News
Uber and Lyft now licensed to operate in upstate N.Y.
ALBANY, N.Y. — Ride-hail- deputy commissioner. operate in upstate New York, DMV the company the driver works for. Companies are also required to
ing services Uber and Lyft have “Ride sharing will enhance also implemented new regulations, DMV has established a com- adopt anti-discrimination policies
finally made it to one of the last safety on our roads, open new eco- including requiring that the fare or plaint process for violations by for all passengers, including those
holdouts in the country — upstate nomic opportunities for New estimated fare be provided on the ride-sharing companies, and is re- with disabilities.
New York. York’s small businesses and enable ride-sharing app to the customer quiring the companies to have es- Drivers must be at least 19 and
The New York State Depart- thousands of New Yorkers to earn before the ride begins. tablished processes for consumer must pass a criminal background
ment of Motor Vehicles said the extra income,” Egan said. “This is The app also must display a complaints easily accessible check that includes a review of
companies began operations last an exciting chapter in the history photo of the driver; the make, through their apps. their driving record before they
month in cities such as Buffalo, of New York transportation and model and color of the vehicle; Ride-sharing companies must can transport passengers.
Rochester, Syracuse and Albany. another example of how govern- and the vehicle’s license plate pay the state a $100,000 applica- Ride-sharing companies must en-
“New Yorkers have long de- ment and industry are working to- number. tion fee and an annual renewal fee roll their drivers in the DMV’s Li-
manded statewide ride-sharing gether to move the Empire State Ride-sharing vehicles must of $60,000. They also must provide cense Event Notification System,
services and I’m pleased that these forward.” also display a prominent emblem vehicle liability insurance for $1.25 which reports traffic ticket convic-
services will now be available,” In approving the applications on the passenger side of the front million and workers’ compensation tions, suspensions, revocations, re-
said Terri Egan, DMV executive by the ride-sharing companies to windshield to verify to passengers coverage for their drivers. instatements and other events.
FMCSA reminding drivers to operate safely around buses
WASHINGTON — The Feder- ministrator Daphne Jefferson. There are several simple ac- quire extra turning room. test, go to https://www.fmcsa.dot.
al Motor Carrier Safety Adminis- “This important partnership tions passenger vehicle drivers • Stay focused on the road and gov/OurRoadsArtContest. To
tration is continuing its efforts to amplifies the message that all driv- should take while sharing the road avoid distractions. learn more about the Our Roads,
raise public awareness so that all ers on the roadway must work to- with large trucks and buses: • Be patient driving around Our Safety program, go to https://
drivers know how to operate safely gether to ensure that everyone ar- • Stay out of the “No Zones” large trucks and buses. www.fmcsa.dot.gov/ourroads.
around large trucks and buses rives safely at their destinations.” or blind spots at the front, back In addition to these tips, par-
through a newly formed partner-
ship under its Our Roads, Our
AAA, the American Trucking
Associations and the American
and sides of the vehicle.
• Make sure they can see the
ents and teachers can involve chil-
dren aged 5-12 in highlighting the
Bus and truck
Safety campaign.
“FMCSA is pleased to work
Bus Association have joined with
FMCSA to amplify the Our Roads,
driver in the mirror before safely
passing.
importance of road safety by par-
ticipating in the Road Safety Art
guide available
with a group of partners that are Our Safety effort to educate all pe- • Don’t cut in close while Contest. The contest allows chil- WASHINGTON — The Fed-
dedicated to safety and share our destrians, bicyclists, passenger ve- merging in front of a CMV. dren in kindergarten through sixth eral Motor Carrier Safety Admin-
agency’s goal of reducing crashes, hicle drivers and commercial • Stay back a safe distance to grade to use their creativity and istration has released its 2017
injuries and fatalities involving motor vehicle drivers on how to avoid being in the blind spot. talent to help raise awareness of Pocket Guide to Large Truck and
large trucks and buses on the better share our roadways and im- • Anticipate wide turns and how to stay safe on the roads. Bus Statistics, a resource that sup-
road,” said FMCSA Deputy Ad- prove safety for all. consider larger vehicles may re- For information about the con- ports the agency’s mission of pre-
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cle-related fatalities and injuries.
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6 August 1, 2017 OPINION Bus & Motorcoach News
Managing your law firm relationships can save money
By Thomas D. DeMatteo timelines. You can also use a short form Minimum time entries — they are directly applicable and
• Have extensive experience in for an RFP and to obtain your best Two issues arise in this area. The important to your matter.
Is the death of the billable hour the applicable subject matter. fee structure. lack of minimum time entries — Multiple timekeepers — This
imminent? • In litigation, envision the end Once engaged, you then want such as a 10th of an hour or 6 min- is my personal pet peeve, lawyers
While many of us in the legal game early on and develop and ex- to be able to analyze your legal utes — probably indicates that you sitting around the law firm confer-
community thought this was going ecute a clear plan to resolve the bills. Your legal bills should con- are being overcharged for tele- ence table talking about your mat-
to be the case due to alternative fee case in a cost-effective way. tain the following line-item infor- phone calls or minor direction on ter and each billing the file.
arrangements, it is still the pre- • Offer an opinion on how to mation: date, name of attorney, de- your matters. Many telephone calls The aforementioned example
dominate way law firms charge for solve a problem, not just options. scription of work, amount of time, are less than six minutes and most is a stretch but many times you
their services. • Understand the difference and a dollar value associated with are less than 15 minutes. have a junior and senior lawyer in
However, you should not be between commoditized work and each line-item entry. A large amount of minimum the same meeting or on the same
afraid to discuss alternative fee ar- customized work and charge You should also have your law- entries also may inflate fees, such call, or lawyers talking about your
rangements with your lawyer. accordingly. yer set up a separate invoice for as a mass mailing of a letter with a matter in the hallway.
But let’s first discuss what you Determining whether your each matter. Here are some red minimum charge for each letter. You should feel free to let your
should expect from your lawyer. A legal work is commoditized or cus- flags to look for that may indicate Clerical tasks — There seems lawyers know that two lawyers are
review of articles in Practical Law tomized is the key to whether al- potential problems with fees. to be a trend toward charging for not required at the same meeting,
revealed the following question to ternative fee arrangements can Question your lawyer if you see secretarial, paralegal and other unless each is bringing different
a high-profile chief legal officer: work for your company. any of these red flags. clerical tasks. You should chal- areas of expertise or
“What does a law firm need to do We have all heard about con- File review — If the entry lenge this because administrative responsibilities.
to impress you?” tingency fees used by plaintiffs in says, “review file,” particularly if overhead should be included in the Bottom line: Always feel free
Here are some of the key personal-injury matters, but busi- not contemporaneous with any ac- lawyer’s hourly rate. to discuss fees and invoices with
considerations: nesses can negotiate different tivity that you are aware of, there Legal research — This can be your lawyer.
• Invest time to understand our types of billing structures such as may be an issue. You want good very costly and should be done Thomas D. DeMatteo is chief
company’s business, its objectives project-based fees, success fees, a descriptions of the activity, i.e. only with your approval after a legal officer, general counsel and
and core values. fee per transaction if the work is “Telephone conference with per- thorough explanation of why the secretary at ABC Companies. He
• Be hands on, efficient and re- commoditized, and, of course, a re- son A and B concerning new driver research is needed. You don’t want can be reached at TDeMatteo@
s p o n s ive t o o u r n e e d s a n d tainer or some hybrid thereof. hours of service.” to pay for theoretical issues unless abc-companies.com.
Equity firms competing to buy private bus companies
By Victor S. Parra interested in buying their about $1.2 trillion in private-equity tangible assets. Probably the most common option
business. money sitting on the sidelines • The businesses have real is the “platform buy,” in which pri-
I suspect some of you reading Usually, I didn’t have a recom- looking for businesses to invest in value, particularly compared with vate-equity firms purchase 80 to
this headline assume it’s the title of mendation but would keep this in- (trillion is not a typo). other investment options such as 90 percent of the bus company.
a sci-fi movie. Well, to the surprise formation confidential until, by You should know private-equi- technology firms. They keep current manage-
of many (including me), it’s what’s coincidence, a company in their ty firms mostly buy mature com- • Buses (tangible assets) have ment in place through a two- to
happening right now. market would surface looking to panies that are already established, high liquidation and capitalization three-year contract, depending on
And the stars of the movie are expand their business. As you can unlike venture-capital firms look- values. what the ownership is comfortable
dozens, even hundreds, of pri- imagine, this rarely happened. ing to invest in startups with un- • Business performance is with. The bus company owners
vate-equity firms looking to pur- Recently, I was invited to serve predictable chances of failure or steady, with no major swings ei- may retain 10 to 20 percent equity
chase private bus companies. as an advisor to an invest- success. ther way, up or down. in their company, get paid a salary
Let me step back for a moment ment-banking company engaged So, the next question is, why • Private equity firms appreci- possibly higher than what they’re
and give you some of my historical in mergers and acquisitions. In the are private-equity firms interested ate the fact that bus operators are currently paying themselves and
perspective. past few years, the company has in the private bus industry? smart, savvy and hard-working, have a large amount of capital
During my 19 years as presi- handled several transactions in the There are several important qualities that seem absent in other from the sale.
dent and CEO of the United Mo- private bus industry. reasons for this interest. Mid- industries looking to make the pro- The owner(s) may choose to in-
torcoach Association, periodically I have since learned how pri- dle-market private-equity firms verbial “fast buck.” (This one I al- vest in the current business (since
I would receive calls from bus op- vate-equity firms view the mo- see the motorcoach industry as a ready knew!) they still have an equity interest) to
erators asking me confidentially if torcoach industry. smart investment because: Private-equity firms offer dif- build new services, buy more
I knew of a company that might be I also learned that there is • Private bus companies own ferent types of purchase options. CONTINUED ON PAGE 11 c
How to contact us ISSUE NO. 335
Jeff Polzien
Red Carpet Charters
Oklahoma City
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CONTINUED ON PAGE 15 c
7 &
Bus Motorcoach
August News
1, 2017 OPINION Bus August
& Motorcoach 7
1, 2017News
Think long term so downturns don’t become death spirals
By Dave Millhouser er we float when the economic tide rational individually mix badly survive then thrive. will do best.
comes back in. with other rational decisions. Sometimes it works the other The country
Uncle Henry had a heart attack One friend who sells used There’s no crystal ball, but think way. Following 9/11 the manufac- really needs what
and looked awful. To make things coaches has always responded to long term, understand your busi- turer I worked for quickly did a we do, and will
worse, the guy in the hospital bed slow sales by getting on the phone. ness’s dynamics and your market’s bunch of corporate streamlining, need more of it
next to him had just died, and he He calls everyone who ever heard needs, then be willing to react trimming production velocity and in the future.
heard the footsteps of the orderlies of a bus, just letting his customers when unintended consequences cutting people, inventory and If I’m right,
coming for the body. know he’s thinking of them. pop up. wasteful operations. and the business
Unk summoned his remaining He doesn’t pitch buses, but he Years ago a large operator re- It turned out builders knew that cycle is on the Dave Millhouser
strength and sat up in bed. Worried reminds folks that he’s around if sponded to a cash crunch by sell- demand had dropped precipitously upswing, now is
that he looked a bit like a corpse they need anything, sorta like Unk ing its newest coaches, figuring it before the attack. They had been a good time to think about how to
himself, he pointed to the dead sitting up. could raise the same amount of reluctant to cut back because they handle the next one. Those gritty
man just to make sure they carted Some situations seem impossi- money but sacrifice fewer reve- feared the industry would perceive folks who are making buggy
off the right guy. ble. We can’t afford new buses be- nue-producing buses. them as being troubled. whips or eight-track tapes don’t
The story has a happy ending. cause we have no business, and we At the same time the operator The nature of the downturn have to worry about cycles, but
Unk married, had a child, lived have no business because our craftily reduced its maintenance gave cover for doing what was for the rest of you (who have sur-
into his late 80s and taught me lots buses are old. budget. You can imagine what necessary (and already planned). vived this one) more are on the
of bad jokes. One friend made his coach ap- happened. The market was more understand- way.
We seem to be emerging from pear new by taping over the man- Unless you’re making buggy ing than it otherwise would have If we understand our business
a downturn, but in the middle of ufacturing date on the builder’s whips, it’s sensible to assume that been. and how it all fits together, we’re
bad times it’s hard to be certain plate. He got away with it because the tide will turn, and you don’t The combination, in recent better able to act rationally in bad
whether we are in a business cycle his equipment was well want to cut out the people or parts years, of an economic downturn times. It’s easier to think all that
or a death spiral. maintained. of your business that will be useful accompanied by a regulatory tsu- through BEFORE we’re worried
As in Unk’s case, it’s important Refurbishing may be an an- when times get better. nami has ganged up on us, and in about making the next payroll.
to note the difference (and to make swer, or new graphics — anything If you are making buggy my view has stifled our industry. Most companies have plans for
sure your market knows you are to show signs of life and that you whips, you’re excused from the That is a cycle, not a death spiral. dealing with accidents, why not
viable). are committed to your clientele. rest of this column. Both of these situations may one for the next downturn? Acci-
When you’re in a death spiral, Business cycles can become In some cultures companies be easing. As the economic tide dents may happen; economic cy-
nothing will help (eight-track tape death spirals when we take short- respond to bad times by unload- begins to rise, those companies cles are certain.
manufacturers take note). But sighted measures that gut our abil- ing their highly paid employees. that have done the best job of Dave Millhouser is a bus indus-
when the business cycle reboots, ity to respond to an improving eco- The problem is, assuming they managing near-term cash crises try marketing consultant and free-
how we behaved during the bottom nomic environment. weren’t top-heavy, those are the without squandering the resourc- lance writer. Contact him by email
of the cycle may determine wheth- Sometimes decisions that seem folks most qualified to help them es necessary for long-term growth at Davemillhouser@gmail.com.
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8 August 1, 2017 INDUSTRY NEWS Bus & Motorcoach News
From cabdriver to CEO: An Ethiopian’s drive for success
By Nancy Kirk determined to dive into the city of Osseo’s
School Bus Fleet school transportation scene.
“In the summer of 2003, I started actual-
FRIDLEY, Minn. — The transition from ly writing letters and delivering them to the
Ethiopian culture to that of the U.S. may school districts, offering them services that
have been drastic, but for Metropolitan weren’t around,” Tufaa says. “Many of them
Transportation Network (MTN) Inc. Presi- made fun of me, but there was one transpor-
dent and CEO Tashitaa Tufaa, an Ethiopian tation director who was willing to give me a
of the Oromo ethnic group who immigrated chance because I had been bothering him so
here in 1992, adjusting to baseball-con- much.”
sumed television and the occasional unre- Because of his persistent effort, Tufaa
lenting Minnesota snowstorm was a small was awarded a single opportunity to transport
price to pay for a life of security. three homeless children to school with the
“Let me put it this way: Whatever I did not van he owned, a task that he says he succeed-
have back in Ethiopia, I have it now through my ed at, receiving no complaints.
freedom,” Tufaa says. “If you are free, then From there, the director started offering
your mind is free, and you can use your talent him more consistent work, and this one-time
wherever you want to go.” errand steadily matured into a full-blown
While Tufaa’s talent eventually brought Tashitaa Tufaa, an Ethiopian who immigrated to the U.S. in 1992, went from driving cabs to company that he now conservatively esti-
owning a school bus company that provides student transportation for dozens of local public,
him to own and operate MTN — a school mates to be worth $35 million.
private and charter schools and owns more than 300 vehicles.
bus company based in Fridley that provides Today, Tufaa employs over 400 people
student transportation for dozens of local mortgage, so he started working nights and love about it.” who transport more than 15,000 K-12 stu-
public, private and charter schools and owns weekends as a driver for Metro Mobility, a Desiring more flexibility and hoping for dents to school every day across the Twin
more than 300 vehicles — the road to suc- Minneapolis-area transportation provider higher pay, Tufaa left Metro Mobility and Cities metropolitan area.
cess was windy and unpaved. for people with physical and mental disabil- started driving a cab, where, he says, “I “I did see a need here in the school bus
Although he majored in political science ities. There, he discovered an unexpected would drive drunk people from the bar, peo- industry for a contractor that was dedicated,
and diplomacy, he couldn’t legally work for passion. ple coming from work, and everyone else.” that was doing business wholeheartedly,” he
the U.S. State Department because he wasn’t “I fell in love with driving, really,” he Despite his formal education and his says.
yet a U.S. citizen, so he started working a says. “It’s very flexible and there’s fresh air, urge to succeed, Tufaa struggled to hold Tufaa capitalized on this recognized
civil service job with the Minnesota and instead of being in the office, you go to these jobs. Unsatisfied with unsteady em- need and founded MTN in 2004. More re-
government. the parks and drive around with open win- ployment and energized with his newfound cently, MTN’s expanding customer base
Tufaa wasn’t earning enough to pay his dows. There are so many different things to craving to get behind the wheel, Tufaa was CONTINUED ON PAGE 9 c
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Bus & Motorcoach News INDUSTRY NEWS August 1, 2017 9
Ethiopian to protect the families and children years of his life in danger, he’s able trips to support the local pro base- keep his business afloat, especially
CONTINUED FROM PAGE 8
that we service,” he says. “Safety to more easily adapt to everyday ball team at the Minnesota Twins while it was just getting started.
is number one.” business challenges. stadium. “There are some things I’ve
i nevitably resulted in the need for a He recounts an instance where “We put ourselves in our cus- Sometimes the recognition had to compromise to get where
space about 30 percent larger than a driver’s bus had broken down and tomers’ shoes, and we listen to the goes beyond simple social events, we are as a business, but as long as
the existing one. his radio had stopped working. feedback we receive. As a result, like when Tufaa expressed his my wife and family understood
The new facility was expected Fortunately, the team realized it people want to do business with gratitude by naming a newly built me, that was all that mattered,”
to be ready this summer. The rede- had broken down because of its us, and we don’t turn our backs,” site the Iverson Terminal, after the Tufaa recalls. “I had to work ex-
velopment will cost about $2.7 lack of movement on the GPS he says. “In Ethiopia, I was raised last name of a driver who had sud- tremely long hours in the begin-
million and is being handled by system. in harm, and so it’s easier for me to denly passed away. ning, and sometimes it came down
Thor Companies, a real estate de- Sure enough, upon physically understand where people come “We named it after her because to paying the people who were
velopment and construction com- locating the bus through the from, whether it’s with our cus- our drivers have an ownership in our working for me before being able
pany that is also based in Fridley. ground tracking system, Tufaa and tomers or our employees.” company,” he says. “We don’t want to pay myself.”
“It will have corporate offices, his team found it immobile and Appreciation for MTN em- to be just another corporation.” Eventually, the achievements
a break room where drivers can were able to service it. ployees stands tall on Tufaa’s prior- Tufaa’s triumph does not come overcame the hardships, and now
enjoy themselves, a fleet mainte- Tufaa calls himself a “f ield ities as a business owner. Every without its challenges. As with Tufaa and the whole MTN team
nance shop, and parking storage guy,” meaning he does not like to year, the company holds an em- school bus contractors and dis- work fervently to transport the
inside for the buses,” Tufaa says. remain in the office. In fact, despite ployee appreciation banquet where tricts across the U.S., he has been community’s youth to their daily
“It’s a much better and newer space MTN’s recent expansion, Tufaa de- everyone, from the human resourc- affected by the widespread driver education.
— a good image for both our cus- cided not to build himself a person- es team to the workshop mechan- shortage, and he worries about “As a contractor, it’s important
tomers and those who work here.” al office. Instead, he works in avail- ics, is invited to mingle with their Minnesota’s slippery roads in the to love what you do,” he says. “I
The majority of updates focus able desk spaces when necessary peers, along with their plus one. winter. He’s also had to forgo sig- still drive, and I love taking those
on the exterior site improvements, and still drives buses every day. “We want to show our employ- nificant family events in order to children to school.”
such as landscaping, a complete “I don’t want to be a guy who ees that we value them,” Tufaa
resurfacing of the asphalt parking
lot, and enhancements to the secu-
just stays inside. I want to be out
there in the field,” he says. “I sit
says. “We are a family, and the
MTN family gets together once a
NTSA executive resigns
rity systems. with the drivers and I listen to year, every year, to enjoy this A L E X A N D R I A , Va . — Weber is working with SEC, Inc.,
Because the agency is respon- them. I listen to their stories in the classy corporate-style dinner.” Ronna Weber resigned her post as and RC Kelly Law Associates to
sible for the well-being of thou- morning and the afternoon, and Other MTN-planned gather- executive director of the National transition her executive director
sands of students, Tufaa says he then I drive the bus to see what the ings that aim to boost company School Transportation Associa- and regulatory relations
ensures that each bus is equipped issue is. This way, instead of some- morale include a monthly bulletin tion at the end of July. responsibilities.
with top-notch technology, from one reporting to me, I see it that informs the team about com- NSTA President Todd Monte- Weber joined NSTA five years
two-way radios to GPS to surveil- firsthand.” pany happenings and employee ferrario said Weber agreed to re- ago as executive director after pre-
lance camera systems. Tufaa attributes his leadership birthdays, as well as weekly pre- main through the completion of the viously serving as a student trans-
“We want the maximum safety style to his perilous upbringing in pared breakfast for drivers, blood association’s summer convention. portation lobbyist in Washington,
possible in all of our buses in order Ethiopia. Because he spent many drives, summer barbecues, and day Montefer rario added that D.C.
10 August 1, 2017 INDUSTRY NEWS Bus & Motorcoach News
More passengers using own electronic devices on buses
The days of giant movie Your Own Device” (BYOD) is users on one account can slow down ed providing high-powered Wi-Fi monitors and DVD players are still
screens and VCRs providing on- making its way through the Amer- Internet speed, and data-usage costs routers, streamable licensed standard features on buses manu-
board entertainment for bus and ican workplace, school classrooms are increasing as more passengers movie libraries and unlimited factured today. High school, col-
motorcoach customers are fading and the fleets of bus and mo- stream movies, answer emails or data packages. lege and professional sports teams
away. torcoach companies. browse social media. Specialized routers are built to often request screens, DVD play-
According to a recent Pew Re- Onboard Wi-Fi was first avail- Some companies pass Internet handle the Internet traffic of 70 ers and satellite TV.
search Center poll, 95 percent of able to some passengers 10 years costs along to customers by users and up to 148 different elec- And many new buses are
Americans own a cellphone and 77 ago, followed by power outlets for charging a daily Wi-Fi fee, while tronic devices at one time. Movies equipped with HDMI interface
percent own a smartphone. personal electronic devices, and others pay data overage bills as are streamed directly from the rout- systems allowing laptops to be
People today are connecting to now USB charging ports are in high as $2,000 a month to avoid an er so there is no buffering or inter- hooked up to onboard monitors.
their devices for work and enter- high demand. interruption in service to passen- ruption of service. Plus, the unlim- “You will always need at least
tainment while “on the go,” and Many motorcoach operators say gers. Others block or restrict cer- ited data package bandwidth is one monitor on board to play the
the bus and motorcoach industry is Wi-Fi connections on vehicles have tain sites to avoid a slow down or easily distributed to all passengers. video safety message,” said Brent
finding ways to keep up with the improved greatly over the years, but interruption of service. Although many passengers are Danielson, director of product plan-
demand. there are still issues with meeting Within the past few years, a bringing their own electronic de- ning and sales engineering at coach-
The current trend of “Bring consumer demands. Fifty or more handful of companies have start- vices on board for entertainment, builder Motor Coach Industries.
SMS study d ata-oriented approach that mea-
sures the performance of individu-
should use it to replace SMS.”
The study identified a number
collection would require greater
collaboration between FMCSA
scheduled-service companies often
travel five times the miles of char-
CONTINUED FROM PAGE 1
al trucks and buses. of data quality issues and recom- and the states to standardize the ef- ter buses annually.
a 12-member panel of academics, IRT has been applied success- mended that FMCSA should con- fort and to protect carrier-specific “We are grateful to Congress
several of them specialists in sta- fully in informing policy decisions tinue to collaborate with states and information, it said. and the National Academies of Sci-
tistics and transportation safety in other areas such as hospital rank- other agencies to improve the col- The study left open the issue of ences, Engineering, and Medicine
policy. ings, and also has a long history in lection of data on vehicle miles crash accountability, which remains panel that worked so diligently to
The study, released in late commercial air, rail and waterway traveled and on crashes. a top concern for UMA members. prepare this report,” Tetschner said.
June, was generally compli- transportation, the study said. It also said FMCSA should re- The current SMS system doesn’t “This report will help FMCSA
mentary of FMCSA for many of “This approach to assessing search ways of collecting data on car- differentiate between crashes identify commercial motor vehicle
its ideas and efforts. safety performance is ubiquitous rier characteristics, including driver caused by the carrier and those carriers that require intervention
However, it recommended that throughout the transportation turnover rates, type of cargo and where the carrier wasn’t at fault. more accurately and fairly. At the
over the next two years regulators agencies that report on safety,” the method and level of compensation. The report did recommend cap- end of the day, an improved SMS
develop a more “statistically prin- study said. “If the model is then Compensation levels are rele- turing better crash and operations will save lives, a goal we all share.”
cipled approach” based on an demonstrated to perform well in vant because drivers who are better data, such as vehicle miles traveled, The National Academies study
“item response theory,” or IRT, identifying motor carriers that compensated have fewer crashes, a practice UMA has suggested may can be read at www.nationalacad-
which involves a more detailed need inter ventions, FMCSA the study said. This additional data help differentiate carriers. Typical emies.org/newsroom/.
UNITED MOTORCOACH ASSOCIATON
INTERNATIONAL DRIVER COMPETITION
2017 Driver Competition Semi-Finalists
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UMA Driver Competition
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Sign up online and learn more about the competition at WWW.UMADRIVERMEMBER.ORGBus & Motorcoach News INDUSTRY NEWS August 1, 2017 11
Little Rock Tours owner
gets taste of VP security
LITTLE ROCK, Ark. — Gina Martin’s SWAT team…I’ve got snipers on my roof.
opposition to the Affordable Care Act — I’m telling you, it’s pretty crazy this week.”
better known as Obamacare — earned her a This all happened as the House of Rep-
visit from the Secret Service in the spring. resentatives was trying to pass an Obamacare
But it was a good thing. repeal bill in March, and Pence’s visit to Lit-
Martin’s vocal criticism of Obamacare tle Rock was planned to coincide with the
caught the attention of the White House, House passing the legislation.
leading Vice President Mike Pence to sched- However, when the House bill failed to Gina Martin’s vocal criticism of Obamacare caught the attention of the White House, leading
ule a visit to her business, Little Rock Tours pass, Pence canceled the trip at the last Vice President Mike Pence to invite her to a health care listening session. Martin, with long
and Travel, to hold a health care listening minute. blonde hair, is seated second from the top right.
session with small business owners. “But they kept me in mind for when the
“We spent a week with Secret Service issue resurfaced,” Martin said. Martin said she discussed the rising rising costs and regulations with FMCSA,
preparing for the visit,” said Martin, founder She ended up traveling to Washington in health-care costs affecting her business and and I suggested to the vice president that we
and co-owner of the motorcoach company. June, along with eight other women small the complexity of the law with respect to needed a listening session about them next,”
At the time, she told the Northwest Ar- business owners, and they were given the motorcoach drivers, who are variable Martin said.
kansas Democrat-Gazette that there was opportunity to discuss the detrimental af- employees. “Everybody in the room laughed, includ-
“Secret Service everywhere and I’ve got a fects of Obamacare on their companies. “I stated these additional costs join the ing the vice president.”
Equity firms There are other options, as looking for an exit plan because Selling either all or part of a right, or if they need more time to
CONTINUED FROM PAGE 6
well. Let’s say an operator has a the owner’s children are not inter- business is no easy decision. In improve their f inancial perfor-
partner or family member who ested in continuing to work in the many cases, ownership goes back mance to increase the value of
equipment and/or invest in captur- owns 50 percent of the company business. There’s an option for that several generations, making the their company.
ing new markets. Or they may opt and is not willing to sell. The oper- scenario, as well. d e c i s i o n ve r y p e r s o n a l a n d Victor S. Parra, former presi-
to just save and invest in various ator can still parcel out the 50 per- It’s called a “tuck in,” where difficult. dent and CEO of the United Mo-
financial instruments, stocks or cent equity interest to a private-eq- private-equity investors may merge But any operators contemplat- torcoach Association, runs his own
bonds. uity firm and use the capital from the business into another bus com- ing selling should, at a minimum, consulting firm, Strategic-Focus
And because of the strong in- the sale to start a new venture or pany in the area. This way the know what their businesses are Advisors, and is an advisor to Cor-
terest from the private-equity sec- invest in other businesses. owner gets to take the equity from worth in the open market through porate Finance Associates. He can
tor, there may even be multiple Or, let’s say a small bus compa- the business and walk away with- an “opinion of value.” This will be reached at vparra@strategic-
firms bidding for the business. ny with fewer than 20 buses is out any debt. help them decide if the time is focus.com or 703-501-6947.12 August 1, 2017 INDUSTRY NEWS Bus & Motorcoach News
Branson, Mo. shows coming all the time with big story of Moses at the Sight & Shoals Lake. “Some are one of a kind and the
CONTINUED FROM PAGE 1
names — Andy Williams, Wayne Sound Theatre, she said. Later came a few homegrown newest in the U.S. The third pillar
Newton, Mickey Gilley, Roy “It was a big seller. I offered it country music shows. Branson of our hospitality would be our
destinations.” Clark. There were reasons for peo- this year and it sold out again. We emerged as an entertainment outdoor adventures.”
The exodus of celebrity stars ple to go back. Now Branson is also will do a Christmas tour. Mecca around 1991. S i l ve r D o l l a r C i t y i s a n
from Branson’s many music shows geared more toward families,” he Christmas is big in Branson.” Theaters were built to house 1880s-themed amusement park
has reduced repeat visits by char- said. The Sight & Sound Theater extended-run shows by country filled with rides, theatrical perfor-
ter customers, said Jeff Arensdorf, Louise Yoder, tour manager for often is called “the Christian music stars including Boxcar Wil- mances and crafts demonstrations.
president of Village Tours & Trav- Mid-American Coaches in Wash- Broadway.” lie, Mel Tillis, Conway Twitty, Lo- The Shepherd of the Hills Theater,
el, which is based in Wichita, Kan., ington, Mo., said destinations such Motorcoach operators that retta Lynn and Waylon Jennings. long the venue for a popular his-
and operates from additional facil- as Nashville and other large enter- offer trips to Branson highly rec- Pop stars appealing to an older torical drama set in the Ozarks late
ities in Salina, Kan.; Oklahoma tainment centers will experience ommend it as a coach destination. generation of tourists also moved in the 19th century, failed to open
City and Tulsa, Okla.; and Fort big booms and everybody rushes “It is the most motorcoach- in, notably Andy Williams and this spring following a bank fore-
Smith and Springdale, Ark. there. friendly town we go to,” Arensdorf Bobby Vinton. closure. New owners purchased
“It used to be a very popular “That can go on for six or eight said. “They have dedicated bus A Ti m e m a g a z i n e s t o r y the property in June and have an-
destination, but it has declined years, then all of a sudden they get loading and unloading areas at prompted more national media nounced some events scheduled
since the early 2000s and leveled in a flat spot,” Yoder said. “Some most of the attractions. The hotels coverage. In 1991 the CBS-TV later in the summer.
off about five years ago,” Arens- of the big-name entertainers have are used to handling luggage for news program “60 Minutes” pro- Christmas has become Bran-
dorf said. “In the late 1990s our left Branson. I only offer it a cou- buses because they cater to lots of claimed Branson “the live music son’s annual highlight, with some
company would run 60 tours there ple of times a year unless there is groups. A lot of the theaters have capital of the entire universe.” shows attracting 15 to 20 buses at
a year. Now we run maybe 16. something that really stands out.” driver lounges and treat our drivers Even with fewer celebrities on a time.
“Branson used to have new One of this year’s hits is the and tour directors very well.” stage, the Branson/Lakes area’s “The Christmas season for
Yoder said her customers feel tourism industry attracts $3.1 bil- them starts 30 days ahead of
Calendar 17-20 National Association of
Motorcoach Operators Annual
like they get good value for the
money they spend in Branson.
lion in consumer spending annual-
ly. About four dozen theaters in
Christmas,” Arensdorf said. “We
probably do over half of our tours
Conference, Alexandria, Va. Info: “They can count on good qual- Branson hold 60,000 seats, a total to Branson during that time.”
August 2017 www.namocoaches.org ity entertainment and the meals that surpasses Broadway, the con- Branson is located a few high-
6-9 IMG Strategic Alliance 25-29 Student & Youth Travel are, for the most part, pretty good,” vention bureau claims. way hours from a number of major
Meeting, Nashville, Tenn. Info: Association Annual Conference, she said. The region also offers 14,080 cities: 209 miles from Kansas City,
www.imgcoach.com Albuquerque, Info: www.syta Branson, located in the scenic, hotel rooms, 5,274 condo units, 252 miles from St. Louis, 273
events.org/conference2017 forested Ozark Mountains of 2,870 camping sites, 200 restau- miles from Memphis, 305 miles
14-15 Midwest Bus & Motor southwest Missouri, began to build rants and more than 100 specialty from Oklahoma City and 418
coach Association Annual September 2017
a tourist industry after World War shops. miles from Dallas.
Convention and Roadeo, 11-17 BusCon, Indiana Conven- II around the region’s 1,000-plus “This week we have 115 differ- “It’s not so far that people have
Traverse City, Mich. Info: www. tion Center, Indianapolis. Info: miles of shoreline on Table Rock ent shows and a large variety of to stay on the bus for 12 hours,”
mbmca.org/convention www.busconexpo.com Lake, Lake Taneycomo and Bull family attractions,” Berry said. Yoder said.
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