Are We Actually Hosting a LIVE Conference? That Would Be a YES.

For real. The stage is set. The program has been developed. Cadillac has stepped up to be our Official Sponsor host. Let’s pray that California will continue to roll back restrictions so we are ALLOWED to gather. It appears that will be the case since events in California have resumed their bookings.

The GCLA Spring Conference is coming. It has a theme: We Move California – LIVE! The sessions will focus on regaining lost business in all areas of transportation from luxury to business travel to retail, shuttles and charter and we’ll bring you the people with the intel to present you the facts.

Here’s the skinny:

The GCLA Spring Conference will be hosted at the Orange County Hyatt Regency, Huntington Beach on Tuesday, March 30th, 2020. Here is a video that pretty much says it all with respect to the location:
https://www.youtube.com/watch?v=ijayct82WmE

This event is CAPPED at 200 people so we will have to prioritize attendance the only way we know how, on a first-come, first served basis. We do have a registration form created for you so sign up now: https://www.gcla.org/we-move-california-live.

We wish to thank our official sponsor, Cadillac. For without their support, we would not have the means to make this live event happen, thus we would continue to be cut off from seeing you in person – a very depressing thought.

Looking ahead, we are also launching the GCLA Expo which is a larger version of our spring conference to include an exhibit area for suppliers as well as an expanded 2-day conference complete with all the networking trappings you’ve come to expect at industry shows. For all of this we are creating a brand-new event website to be up and running in the next week. In the meantime, please make note of it: www.gcla.show.

As you can see, the GCLA is growing in its optimism and there’s good reason. In the month of January, the GCLA renewed 70 percent of its 2020 membership PLUS we are welcoming 32 FIRST TIME MEMBERS. How is this possible when mobility is at a mandated halt and operators are in dire shape? It’s because our constituents know that we have to fight our way back to a robust economy and save our industry. We need each other more than ever. We need strong leadership and we need a plan. And, most of all, our people need to know someone has their back. Our job is just beginning for 2021 but we are pointed in the right direction and cannot wait to see your shining faces this spring.

Stay Strong. We are in this to win this!

FEBRUARY IS THE MONTH OF LOVE - And Here Comes the Bride

2020 was a complete disaster for the wedding industry. However, unlike other live events that were “cancelled” weddings were not. For the most part, they were pushed off to 2021.

Wedding planner Holly Poulter, Founder and Creative Director of Revelry Events, as this to say about the upcoming wedding season. "2021 will be the industry's busiest yet, with even the off-peak, normally quieter weekdays and months booking up with not only 2020 postponements, but also couples who would have been planning a 2021 wedding anyway", Holly warned. "It's safe to assume Summer 2021 will be busy anyway, with newly engaged couples snapping up dates alongside postponements, so expect the less popular months to book out as well."

Weekday weddings are on the rise this year. Driven by availability because last year’s couples who moved their dates snapped up the best ones already, newly-engaged couples are opting for week days in lieu of postponing. Wedding professionals are working to modify weddings to work with a weekday plan so that couples are happy to take time off during the week to go to a wedding of someone near and dear.

2021 will definitely see more local destination weddings due to the uncertainty of travel in the coming year. California with its beaches, wine regions and mountains, offers the best of the best for outdoor and destination venues.

WHAT WEDDINGS WILL LOOK LIKE IN CORONAVIRUS ERA?
Smaller weddings were trending in the last few years anyway, as couples started to actively choose to reduce their headcount way down in order to invest more in each person, rather than spread their hard-earned money further across 150 people. This crisis has shifted priorities and the focus is now more on an intimate gathering with their nearest and dearest, and it will be hard to get over the mental hurdle of being around big groups.

Finances will also play a big role in this. “It doesn’t take a genius to figure out that in most cases, reducing headcount reduces spend. So, if couples have been hit particularly hard by this crisis but they just want to be freakin’ married, then perhaps we’ll see smaller budgets and smaller numbers because of it."

My husband and I got engaged on February 14, Valentines Day and yes, we celebrated in a limo! As we turn the page on January and move to the Month of LOVE it’s time to play Cupid and get on with marketing your celebration packages. And, very importantly get on the phone with your local wedding planners and venues to cash in on the busy wedding season ahead.

Sara Eastwood-Richardson
Executive Director, GCLA

Urgent Message Regarding Federal Loans and Grants - Time Sensitive

Dear Colleagues,

Today, I am going to keep this message short and to the point since time is of the essence. This week is your only window of opportunity to apply for the new PPP2 program. The applications are processed on a first-come, first served basis and when the money is gone, it’s gone.
In the spirit of time, I’ve researched the best tutorials for you to watch and came up with the one below that will take you through the entire application for sole proprietors, independent contractors and partnerships. Review this as soon as possible and get going on the application if you haven’t already:

https://www.youtube.com/watch?v=MRNKKSpPDaw

Also, hidden way down on the SBA website regarding the EIDL, there is a $10,000 grant program (free money). Some caveats to receiving this money apply so watch this video to find out if you are eligible. The amount of money in this grant program is $40 million and will pay out mid-February which is double that of the grant program from last June so don’t shirk this off! This link is extremely helpful to know exactly what’s entailed so watch:

https://www.youtube.com/watch?v=4xbjas5xwUI

For Greater California Livery Association members only – our office hours are 9am - 5pm, PST. My team and I have actually applied for relief on behalf of the GCLA and know the ins and outs too. If you need personal assistance, you should call our offices immediately or email us at www.sara@gcla.org and set up an appointment for one of us to help you. Our office number is (213) 349-0190.

If you are not a GCLA member, you need to join now. Our annual dues are $75 – that is $6.25 per month, or the cost of a Starbucks coffee and donut! The benefits to belonging to the GCLA extend out to offerings like this, a personal help desk, and go far deeper. Just go to our website and see what’s cook’n. www.gcla.org

We encourage members from all states and all countries to become members to connect with us. The state of California represents the 6th largest economy in the world with over than 165 Billionaires and more than 1 million Millionaires. The state is the Mecca of tech and entertainment. It also attracts more than 300 million visitors a year who vacation here. This is where the major networking opportunities abound. Come one, come all – you are welcomed here. We are enjoying an explosion of growth in our community and we’re only in month ONE of the New Year.

Our motto is real: We are in this to win this and so we shall!

Sara Eastwood-Richardson
Executive Director, GCLA

PPP – Part 2: Applications Should Be Filled Out NOW!

Just in case the crazy news cycle has distracted you from getting new information about another round of funding (PPP 2) which was approved December 27th I am highlighting the details for you. Applications opened this week and small businesses ONLY may apply so that, this time around, money goes to those who need it the most, first. Remember, this is a LOAN that must be paid back. This is not free money. Read the loan terms so you are clear on this point.

The New Year, A Renewed Sense of Hope

My son came home from college for the winter break and needed a job. Luckily there was a short-term vacancy at my office for him – a paid internship as it so happens. (smile)

Alec’s first task was to contact 150 or so members as part of an outreach program. We’ve sent lots of emails about changes to our billing program at the GCLA over the past few months to let everyone know we are now on a fiscal calendar and the $75 annual dues are paid at the beginning of the year. Also, thanks to the generosity of two GCLA board directors, Patrick O’Brien and Jeff Brodsly, we have a new Membership Grant program that covers a year’s worth of dues for any member that plans to stay in this fight but is in financial need of help. On that note, Alec spent the last five days calling on members expecting to get an earful due to the terrible Covid-19 situation we are in. Instead, aside from a few exasperated operators (understandably so) my son was met with warmth and appreciation and hope! 71 operators renewed with the GCLA from Alec’s outreach efforts. And, our offices learned a lot about what’s happening on the frontlines. That intel will help us prioritize our tasks. Some stories were heartbreaking while others were inspirational. All in all, people were lovely and gracious. We have the best people in the transportation world here in California, and beyond.

While many other associations suspended operations this past year, the GCLA invested in its organization and accomplished so much for the betterment of things to come. We are ready. We have all new committees that will get to work for you starting with onboarding meetings set for early next week. Your new leadership is now posted on www.GCLA.org We encourage anyone who wants to become part of the back-to-business efforts we are putting in place, reach out to me directly at sara@gcla.org

Other news; I sent out personal emails to all members about a state grant program that is FREE money for you. The application deadline was January 8th but it’s been extended to the 13th due to all the glitches on the system. Watch your inbox for more on that – we have people here that can help you apply.

Federal money is coming. Now that our elections and the final decision has been made for our country’s president we can expect to hear more in the coming months about aid. Meanwhile, eyes on California. We are in the traditionally slowest season of the year, but spring is around the corner. I spoke to Jay Glick this morning. He’s one of the countries largest retail operators. He moved 600 weddings from 2020 to 2021 and they are NOT going to wait any longer, so he tells me. Weddings may shift to being outside (in our state that means more beach events; barn weddings; wineries and mountain places) but they will happen, with a nice bump from those that stalled out in 2020.

Stay strong and keep those positive attitudes alive. We are in this to win this and sooner or later, people will need to move again.

New Year’s Resolution: Targeting the Rich & Restless of California

We heard today that our state lockdowns are extended for two more weeks due to lack of capacity in hospitals – primarily in Southern California. While Covid-19 cases reports are on an uptick, the overwhelming majority of residents are healthy. It’s increasingly becoming a tough sell to ask California and its small businesses to “take one for the team.” How can we work together to create some social relief for the millions of people who are going stir crazy and the businesses that used to serve them their outlets while still being mindful that Covid-19 is a problem?

More than 50 percent of California residents are between the ages of 18 and 65 which is the demographic the CDC sites as being the lowest risk rate. There are more than 1 million millionaires in California — more than any other state. San Francisco has the highest density of billionaires of any city in the world. Over the past five years, California has attracted 162,000 more adults with at least a bachelor’s degree from other states than it has lost, according to the Public Policy Institute of California. The Golden State stands alone in this regard.

I think it would be very interesting to bring together folks from the GCLA and the California Restaurant Association to brainstorm on ways to create an experience involving small groups, a great vibe/ambiance like the inside of a limo, some food, good wine, some fun music.

Can we do wine tasting inside a vehicle? Can we offer a party-in-a-car? The demand is there for a huge California demographic to socialize. The demand is there for restaurants to create revenue streams.

Weddings are expected to huge in 2021 in the way of numbers but the trend is for smaller, outside events. Beach weddings will dominate into the New Year. We have plenty of beachfront. People movers for those in need of transport, such as Non-emergency medical and paratransit are viable options to explore but we’ll have to help you to understand how to secure contract jobs if that’s something you’ve never done before.

We can’t stop thinking of ways to make money using our ground transportation expertise. 2021 is the year we rebuild our industry.

“A need or problem encourages creative efforts to meet the need or solve the problem.” - Greek philosopher Plato.

Looking Back with GCLA

Dear GCLA Members and Industry Colleagues:

I am writing to convey my very best wishes to all of you as we wrap up an eventful 2020 and shift our momentum into the next calendar year. The past months have been rocked with challenge, but even through the storm, noteworthy achievements have happened.

Just a few outstanding examples: the GCLA joined the fight to upend Prop 22 and stayed the course to the bitter end. Along the way, we got to know some of the most influential politicians and organizations in the state of California, thus expanding our sphere of influence and credibility. We need all the friends we can get. So, despite the Prop 22 setback (and the fight is not over), your transportation association garnered much needed clout and opened more doors of support for the challenges ahead. Another proud achievement was being able to offer our members a hygiene safety certification for frontline personnel/drivers. The www.SafeCleanRideCert.com program has been accepted by a growing number of travel organizations, insurers and trade groups. We have only scratched the surface with this program. We aim to change human behavior towards health risks through education and we’re off to a great start. This year we also created membership standards and a code of conduct that enables the GCLA to help resolve individual business disputes – something no other trade association offers. Our members have a place to go and be heard. We proudly rolled out a new digital membership directory which we are promoting to transportation buyers AND we have this fancy e-newsletter that is reaching more than 6,000 transportation professionals EVERY week!

As we ring in the New Year, the Greater California Livery Association has updated its Association Committees and we are looking for volunteers to add to our teams. We have big plans that include a new series of industry awards programs, the GCLA Academy, two live events sponsored by big brands like Cadillac. Our advocacy calendar is busy as well. There is much work to do legislatively to get our members moving again. I have the 2021 GCLA Committees Sign-Up Sheet at my desk so please send me an email to sara@gcla.org and we can go over the projects you’re most interested in.

Indeed, we have so many points of pride that there are too many to do them all justice in an end-of-the-year letter. We have many good people with helping hands that made all the difference in the world. And, to our sponsors…there’s a special place in Heaven for all of you. We thank you for shouldering the lions’ share of our overhead this year and backing our member initiatives.

If you’re on the fence about joining the GCLA, please get off and come be a part of our community for $75 for Operators and $300 for Suppliers a year. We want and need you. We don’t care where you’re from either. They say what goes in California, so goes the nation and it’s true. Out-of-state and abroad members offer different perspectives and that is so very important to us.

This is a winning association with great momentum. Get involved and help us accomplish big things together in the year to come.

With very best wishes,

GCLA Gets Personal

After 6 months of stops and starts, your association has finally made the first “house call” appointment for the industry. We Move California LIVE is a real event at a real hotel with real people and it’s really happening! Yep, we’re paying our constituents a house call to help heal the ground transportation industry.

We Move Live is slated for Tuesday, February 16th. It’s a full day of meetings that will answer your critical survival questions and concerns. The event registration is on our website – www.gcla.org. Cadillac has stepped up to be a marquee sponsor which is very exciting. And, we expect many more vendor sponsors and donors to show force. We are in this to win this and need the full cooperation of the sellers and the buyers within our ecosystem so we can get California move’n again!

The destination we selected is the Hyatt Regency in Huntington Beach, Orange County – one of the most “small business” friendly counties in the state. Our headquarter hotel offers dining options from tacos to pizza-by-the-slice to upscale restaurants, both indoors and out. There’s several pools and tennis courts. The beach is only 100 steps away. The walking streets of Huntington that are just outside the hotel and are lined with laid-back eateries and pubs. There’s a real “Key West” vide in Huntington Beach that’s relaxed and happy which makes it the perfect place for our first gathering. Here’s a walking tour if you’re interested in checking out the beach resort town. https://www.youtube.com/watch?v=bbVJOrj_8As

We covered all the basis for you as far as the event meetings are concerned. Our aim is to make sure you hear from experts in all aspects of travel and mobility so you know exactly what to do with our business in 2021.

We have left meal times open for spontaneous meet ups and networking (and to allow you to control your budget). There is plenty of time to “talk” and all the GCLA leadership will be on hand for those needing emotional encouragement, support, a good story or a laugh.

The event is restricted to only a few hundred attendees and we expect to fully sell out so don’t delay. Registration for current operator members is $50. Vendor members are expected to make an association donation or buy a sponsorship to attend. We have something available at all price points but this is a non-profit organization and we need financial help to bring forth events like this so inquiry with me at sara@gcla.org.

Blessings to you and your families during this season of giving. We simply cannot wait to see your shining faces soon!

California Replace Europe for Luxury Travel Next Year? Experts Weigh In

Virtuoso is a global membership-driven club for HTW (high net worth) travel advisors. 6,000 of them met for a 4-day Virtuoso “Virtual” Travel Week this past August to discuss, well, luxury travel and new trends shaped by the Covid-19 pandemic.

Visit California, the states’ tourism promotional arm, made a big splash at the event bringing many of our Golden State’s best luxury destination options. Highlighting our many alluring luxury amenities – both manmade and natural, was a play to lure luxury travel to California next year – and it worked.

Our state was exposed to 6,000 travel advisors to the well-heeled, comprising of 70% with domestic advisors and 30% international, a reversal from past years, where international comprised the majority of luxury travel trade. Team California also conducted a webinar leading up to Travel Week show that informed 115 advisors learning about the latest in California’s culinary scene.

It’s important to note that GCLA is a member of VISIT CALIFORNIA! After the Virtuoso event, our state PR sent thank you’ s and a one-sheet resource guide with links to trade tools, social channels, and other Visit California resources including the Visit California website, the Respect California page, Road Trips Hub, and video assets to all 6,000 decision makers.

Here are the key insights from the event and meetings:

1. Luxury sentiment: The luxury segment appears to be more open and ready to travel. Advisors shared that roughly 50% of their clients have already traveled or are planning to do so in the coming months.

2. Key areas of interest shared by luxury travel advisors: Road trips, wine country, national parks, home and villa rentals.

3. West coast advisors expressed interest in learning more about California’s hidden gems, as they were already familiar with most destinations.

COVID-19 concerns: Broadly, there remains some uncertainty about what tourism options will be available, luxury and otherwise, and how many restrictions are in place in California.
Agents inquired about the possibility of private dining, hotel buy-outs and other exclusive and private luxury experiences.
Agents appreciated the team’s on-the-ground updates.

Takeaways:

1. Domestic advisors need updated information as many have not focused on domestic front for years.

2. California is well positioned as an alternate to Europe and other global destinations due to our amenity offerings and weather.

3. The luxury market is resilient as they have the means — both time and money — and experience with travel to feel relatively at east with the pandemic.

4. Many clients have unused credits from canceled spring/summer trips they are ready to utilize.

The governor has been cautious with respect to opening up California but with the vaccines already in distribution phase, it’s widely believed that 2021 will loosen up. The luxury market is mostly attracted to unique experiences so big attractions like Disneyland are not as important as, say, Camping in Yosemite.

Luxury travel requires a white-glove service mentality and a polished image. Throughout the holidays and into the early part of 2021 (when it is seasonally slow) I encourage you to look at your storefront – your website, in particular, and compare it to other luxury sites like the Four Seasons. The same discriminating tastes that prefer “French Laundry” dining (you get the joke) will be looking for high-line mobility options as the state of California continues to court the global luxury travel market as an option to Europe and other countries into 2021.

What’s the News for December?

As the bulk of the United States hunkers down for cold days ahead, the state of California offers some of the best weather options and attractions in the world during winter season. For this reason, our state is doing its best to deter sun-seeking vacationers from coming here for fear of aggravating the Covid-19 spikes. There were 279 million tourists who traveled to California in 2019. Add that to the already crowded state by nearly 40 million residents and its easy to see why our government is concerned with potential problems. It’s 2021 we are waiting for and there are very positive signs ahead. For one, our political situation is sorting itself out. No matter what side of the aisle you’re on, we can all agree that politics leveled a hefty blow to our livelihood this year as we were basically suspended in time with respect to more relief and policy changes. We have a vaccine that has been touted as the linchpin for the Covid-19 massive recovery. We may be forever changed in the way we approach sanitation health risks, but like the Flu shot, the Covid-19 vaccine is a major breakthrough and will allow us to get moving again.

I will continue to extol the merits of www.safecleanridecert.com. This is a 1-hour training program that covers hygiene safety, endorsed by the GCLA. It includes a knowledge test that requires an 80% pass rate in order to be certificated. SCR meets the CDC and CAL/OSHA requirements for healthy working environments. It will be an invaluable risk management cogent evidence tool should your workers or clients make claims against you or your company. It satisfies the Duty-of-Care peace of mind that corporations are looking for when considering transportation contracts. And, it is a proactive response to a very serious crisis which will be seen favorably by all.

On GCLA specifics, here are some important updates that have recently transpired:

*OurWe MOVE California - LIVE,sponsored by Cadillac and SoCal Penske has been rescheduled to Tuesday, February 16th. All event details will be on gcla.org next week. This will be our first in-person meeting since December 2019 and we have quite a conference prepared!

*We have elected our new board of directors and are pleased to welcome back Selim Aslim, director-at-large, Darren Croasdale/San Diego, Mark Stewart/Orange County, Robert Gaskill/Los Angeles, Don Mahnke and Tom Buck/Northern Cal seats. New to our board is Alex Darbahani/Los Angeles and Alaric Sales, McCoy Auto/vendor seat. Congratulations to all!* We have launched the Pat O’Brien Grant Program. Mr. O’Brien, who serves as council board of director to the GCLA has pledged $5,000 towards this newly formed member benefit, created to help current members who wish to renew their membership but are suffering a financial hardship. Contact our offices directly for details. Sara@gcla.org

Hoping everyone had a nice Thanksgiving break. Stay optimistic – we are in this to win this!

Sara Eastwood-Richardson

A Note of Gratitude for You

“When you are grateful, fear disappears and abundance appears.”
—Anthony Robbins

As we begin our Thanksgiving celebrations tomorrow, let’s remember to count our blessings, not our curses if for only the day – or perhaps a few more. This year has been scary, frustrating and lonely for many. But, for this holiday I encourage you to push all of those feelings aside and only concentrate on what is right in your life.

Here are some important things I ask you to do for the sake of making YOU feel better. By doing these easy things, I guarantee you, a new energy will emerge in you and that is what you’ll be needing to harness for the rebound to come.

1. Say “thank you.” The most straightforward thing is sometimes the most overlooked. Thank your family. Thank your pets. Thank your friends, your Pastor or Rabi, your employees, your neighbors, the check-out clerk at the store. Every day, thank people and thank God.

2. Give a gift card. There is someone worse off than you in your life. Find someone and give them a gift card…even if it is for a $2.00 Starbucks coffee. Do it.

3. Make family art. Part of being a parent is cultivating a heart of thankfulness in your children. This is a great opportunity to talk about how your family is thankful. If you have a child, have them write or draw a thank you card to anyone…a grandparent, a teacher, a friend.

4. Buy a book for someone that had an impact on you this year. The exercise of thinking of that person, and then of buying that special book will take you on a very satisfying personal journey. Don’t forget to sign it!

5. Praise your team openly in an email (like this one) to your co-workers. Point out something good in each of your people. Acknowledging the ways that they contribute to the team will let them know that you notice and appreciate their work.

6. Praise your associates privately as well. A nice note, heartfelt email, or even a simple, genuine expression of gratitude for a person’s contributions to the work can make a huge difference in his or her life, and will make you feel great.

These are very small, but transformational, things that we can all afford to do. In the spirit of giving thanks, let us also thank ourselves for the resolve we’ve shown this year.

Blessings to you all during this time and enjoy the experience of giving.

Sara Eastwood-Richardson

GCLA Updates

Over the course of the past 2 months I have been advising you that your association would be hosting a live event in December. Last week, after securing an official sponsorship from Cadillac and SoCal Penske, we were 100% set to go with a program that we believe our members are desperate for, a face-to-face program that brings together all the key players in luxury and business travel, tourism, meetings and events, hospitality and ground transportation. The event, coined “We Move California” was set for December 15th at the Hyatt in Huntington Beach.

Unfortunately, Governor Newsome announced new state restrictions effective immediately that made things impossible for us. So, sadly we report that we are postponing the GCLA December event to January. In it’s place we will host another Town Hall meeting that addresses important topics to hopefully include Prop 22 and next steps.

Two weeks ago, our association cobbled together a Town Hall (with one week to spare), hosted by Selim Aslam from MIB in San Diego and Harry Dhillon of Ecko in San Jose. Thirty-five percent of our current membership registered for the Zoom call, and all of those people showed up for the event. That tells us that there is a real need to have dialogue with our people beyond our e-newsletter. So, communicate we shall.

We are winding down on our board elections. There are two seats that have competition, Los Angeles and the Northern California regions. Please cast your vote by next Tuesday, November 24th. If you did not receive a ballot in the mail by now, call us immediately at (213) 349-0190. All voting ends at 5:00pm next Tuesday.

On membership renewals, please note that the GCLA has moved to “annualized billing” so that we can operate on a fiscal budget and run your organization in a more organized fashion. You will be receiving renewals this month. The GCLA board voted last month to keep membership dues to $75 for operations and $300 for suppliers. We have held these prices this low for the last two years. In your renewal notices, you will receive a stakeholder’s report from me that outlines all the activities of your GCLA this year and the macro-level outlook for 2021. You’ll also receive a membership satisfaction survey via email. We need to know how we are performing for you. We don’t want to guess at what you value most in this community, we want you to tell us.

In close, next Thursday and Friday our staff will be celebrating Thanksgiving so our newsletter will come out a day early. Speaking of Thanksgiving, I want you all to know who much my team and I love serving you. We appreciate your faith in us as we lead the way forward – upward and onward. This year was tough but alas, we are tough. History changed within our country and our world in a blink and the worst of burdens were laid upon us. My first month on this job was March 2020, a month I will never forget. I am ever grateful for such a wonderful board of directors and a fabulous person in Mo Garkani, your GCLA president to represent. I am hopeful you can find thanks in your lives and are able to reflect on at least one thing positive during this sacred time in our country’s heritage.

Sara Eastwood-Richardson

GCLA Hosts First Town Hall on the Subject of Insurance in Today’s COVID-19 State

This past Tuesday, our association held a ZOOM Town Hall to a PACKED crowd. Selim Aslan, GCLA board of director and owner of MIB in San Diego and Harry Dhillon, GCLA VP and owner of Ecko Worldwide were duel moderators.

The big question of, “What is the state of affairs in CA regarding for-hire transportation regarding changes brought on by the Covid-19 crisis?” was the cornerstone issue. It was addressed by Ken Bruno, the California Public Utilities Commission Program Manager for Transportation Enforcement and Don Wise, Licensing Supervisor for the CPUC. Mark Freeark with TIB Insurance got deep into insurance challenges we all face and Patrick O’Brien, attorney at O’Brien Law and GCLA board of director weighed in on legalities and workers comp issues. Also, Ashley Richmond joined us from AK&A Labs to address drug testing.

Selim asked a great question of the panel to start the session off. “What can we do to improve our relationship with all of you in the spirit of working together while we strive to get through these tough times?” Mark Freeark spoke on behalf of the panel and said the answer is, consistent and clear communication. Staff changes, remote challenges, and new rule have upended our world and what this panel wanted us to know is that they only win if we do. We are in uncharted waters but they are on our side and stand ready to help us.

The question of why insurance costs are rising was also addressed. Transportation insurance has grown to be so costly for insurers they are pulling out of the market. Why? Because litigation expenses have supersized over the last decade and reform laws are needed. For instance, what was a minor accident 10 years ago with a payout of say, $20,000 to $50,000, now settles for $1 million or worse. Even if an operator has a perfect incident record, their premium must help subsidize those humungous claim settlements - which irks a lot of people. In the state of California, the panel noted that only two primary insurance companies – Lancer and Philadelphia are left. Atlas was an example of an insurer that jumped into the transportation market only to file for bankruptcy. Northland Insurance pulled out of the state last month.

The group tackled the idea of the GCLA creating an insurance captive only to determine the costs were too high and the risks too great. The best thing we can do is work together on collective purchasing – meaning group buys on safety equipment that helps lower insurance costs such as vehicle cameras.

Ken and Don from the CPUC helped to clarify confusion about requirements involving Transportation Charter Permits. They also touched on the TNC matter regarding Prop 22 by stating it was too early to know how or what enforcement policies will change. That subject is unfolding. The GCLA was tasked with spearheading a task force to address all things involving the new outcome to which our legislative team has already met on. Stay tuned.

Sara Eastwood-Richardson

Prop 22 Gets A Yes, So What’s the Plan?

California voters want their Ubers. The YES to Prop 22 won by 58% which means the people sided with Uber and Lyft declaring the company drivers are indeed independent contractors.

Now the question is, what does that look like for the TNCs and what does this all mean to chauffeured transportation?

There’s a lot to unpack here. If the TNC drivers are forced to play by the California rules for Independent Contractors, drivers will be met with a new reality.

First, they are now officially business owners who must have a tax registration certificate with a tax ID number. As independent contractors, drivers will also be responsible for self-employment taxes. Depending on the county, they may need a business license and an operating permit. Also, they will be on their own to pay for all the costs of doing business including airport fees, which can be as high as $5 per ride, their vehicles, fuel, maintenance, their phone (or other operating systems), garage fees if any, tolls and parking. Traditionally, independent contractors in California have the rights to decide when and where they work, set their own fees and have multiple clients. We know drivers are using a multitude of platforms that deliver trips but a very good question here is, will Uber and Lyft drivers exercise their right to set their own fees now that they are truly independent contractors? It could get very interesting.

However, despite having greater autonomy, independent contractors don’t enjoy the same rights under California law as employees. They can be fired far more easily and aren’t entitled to overtime pay or even the minimum wage. They may be required to work long, unbroken hours without extra compensation. They are ineligible for unemployment insurance and they are not protected from federal and state antidiscrimination laws. Other benefits like retirement and health benefits, FICA tax payments and Workers’ Compensation insurance are the sole responsibility of the contractor.

How is the GCLA dealing with this ruling? Cautiously. Prop 22 was backed by the DNC, and many close allies to the GCLA in our state Capital and government. We must take care to meet with them to better understand how to communicate with you. Action steps are in the works.

In close, this week we determined that a live meeting with all of our constituents is a must. We have committed to offering a 1-day State-of-the-Industry program on Tuesday, December 15. Due to Covid19 restrictions we will host this meeting in Orange County to be able to hold the event inside. Mark your calendars and reserve that date. Details will be released early next week.

Sara Eastwood Richardson

The Home Stretch Is “Finally” Here…

This week I attended the International Association of Transportation Regulators virtual conference. I learned a great deal – especially about what the GCLA is doing well. Our association is on the right side of the VOTE NO on Prop 22 campaign. I sat through a session facilitated by Edward Escobar, head of the Alliance for Independent Workers and truly appreciated hearing the different perspectives and why Ubers business model is truly so damaging. I realize it’s odd to be sitting at the table with regulators and unions, but hey, we’re on the same page with this issue and I am proud that we’ve been able to come together in the fight for fair business practices. They may come from the labor side, while we come from the owner’s perspective but we are working together for the common good and that is forward motion.

Prop 22 is in a dead heat right now. Uber, Lyft and Instacart have spent $200 million against our Alliances’ $10 million ad spend. It’s the David and Goliath story to be sure. And, just 5 days in front of the election we are tied. It is anyone’s win. So, what does that mean? It is ALL about voter turnout. If you want a better tomorrow, to reclaim lost market share to the TNCs, and if your care about fair pricing than you MUST GET OUT THE VOTE. Let me repeat, if you want a better tomorrow, you have less than 5 days to become an activist. It does not matter your party; it only matters in the state of California that you vote NO on Prop 22. If you are not spreading the word, if you are not bringing along your friends and family and their friends and family then guess what? We may lose. Do your part and sound off! No regrets!

The other take away from the IATR conference is that www.SafeCleanRidecert.com is ahead of its time and right on the money. This is a hygiene safety certification for frontline employees that will absolutely save your butt in case of legal action taken against your company should you have to defend yourself in a liability suit. I attended session after session with experts who reinforced the importance of training and moreover having proof that your company is taking all the right precautions. The GCLA was quick to endorse SCR and for all the right reasons. California is a state with 40 million residents. Governor Newsome is hyper-focused on Covid 19 and its impact. SafeCleanRidecert.com is enthusiastically lauded in all transportation verticals. Moving people is what we do and there can be no chances taken – now or into the future. Join the smartest companies in the business and get your drivers certified.

We are doing what we can to get through these tough days and praying that the election changes the protectory for 2021. GCLA has been working extremely hard for California livery companies in an effort to ease your burdens. There are a few stand out people that need to take a bow…Mark Stewart (CLI), GCLA legislative chair, is your guy when it comes to Prop 22. He volunteers around the clock and handles all the Vote No marketing. I’m afraid to ask him how many FREE hours he’s accumulated but its in the hundreds, just in the last few months. He is flanked by David Kinney (API) also on the legislative committee. Mo Garkani (C.O.T.S.), the GCLA president also must be recognized. He is on the phone day in and day out fighting for California. When he’s not on a virtual call, he is at the airports working on behalf of all of you or serving literally every committee we have!

This next week is so important. We need everyone to push the Vote NO on Prop 22. Get loud and proud. Let’s GO GCLA!


—Sara Eastwood Richardson