Oklahoma Motor Carrier Magazine - Winter 2014 by Oklahoma Trucking Association

JIM KLEPPER MEET THE CHAIRMAN PLUS

ACA UPDATES WINTER EVENT HIGHLIGHTS

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15705 E. Skelly Dr. 4650 S. Loop 340 Tulsa, OK 74116 Robinson, TX 76706 (918) 437-8383 (254) 662-6600

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Editor | Shannon Helton shannonhelton@oktrucking.org Executive Director | Dan Case dancase@oktrucking.org Bookkeeper | Les Hinkle leshinkle@oktrucking.org

For over eighty years, the Oklahoma Motor Carrier (OMC) magazine has provided OTA members with important information concerning their association and the trucking industry. Each issue of the OMC features an OTA member company, and update on state and national trucking issues and highlights from OTA events. The OMC is read by over 3,700 people throughout the state of Oklahoma Celebrating including those outside the trucking industry.

Fall 2012 | Volume 19 | Issue 4 | www.oktrucking.org

80 Years

For advertising rates and information, please contact Shannon Helton at 405.445.1790, or visit oktrucking.org for rate sheets and additional information.

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The Oklahoma Motor Carrier Magazine is produced by Shannies Art & Design, LLC and is printed by Southwestern Stationery & Bank Supply, in Oklahoma City, Oklahoma.

The Oklahoma Motor Carrier (OMC) is published quarterly by the Oklahoma Trucking Association, 3909 N. Lindsay, Oklahoma City, OK 73105. Office of Publication, Southwestern Stationary, OKC, Okla. Bulk Rate postage paid at OKC, Okla. Please address all correspondence to 3909 N. Lindsay, Oklahoma City, OK 73105. Oklahoma Motor Carrier Magazine | Winter 2014

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IN THIS ISSUE 6 THE POWER OF THE INTERNET 7 WELCOME 2014 7 UPCOMING EVENTS 9 MEMBER UPDATES 10 FMCSA FINALIZES RULE TO

OTA CHAIRMAN: JIM KLEPPER

SHUT DOWN CARRIERS BASED ON PATTERNS OF SAFETY VIOLATIONS

10 DAVE OSIECKI TO LEAD ATA’S

LEGISLATIVE AFFAIRS OFFICE

12 UPDATES ON THE

AFFORDABLE CARE ACT

16 WILL A DETROIT JUDGE’S

GREEN LIGHT TO BANKRUPTCY RESULT IN RED LIGHTS FOR PENSION DEBT ELSEWHERE, INCLUDING OKLAHOMA?

20 OKLAHOMA ECONOMY

YIELDS MODERATED GROWTH IN 2013

25 SUMMIT HOLDINGS IS

HOLIDAY OPEN HOUSE

NAME OF MERGED DIAMOND COMPANIES AND ROBERTS TRUCK CENTER DEALERSHIPS

27 FULL-SERVICE TRUCK REPAIR AND MAINTENANCE COMES TO INLAND TRUCK PARTS IN TULSA

28 SAFETY ZONE WITH JOHN MALLORY

37 OSMC FALL SEMINAR HIGHLIGHTS

42 MEMBER SPOTLIGHT: BEAVER EXPRESS

TMC FALL TECHNOLOGY WORKSHOP Oklahoma Motor Carrier Magazine | Winter 2014

Every Where.

DIRECTORDAN CASE OTA EXECUTIVE DIRECTOR

DAN CASE

THE POWER OF THE INTERNET Unmatched Support

If you were like me, you received your two day air shipment Christmas present, that was sent December 21, about December 27th. Millions of us had this happen because of the shift to shopping on the internet. The switch to shopping on the internet is led by the “Internet Generation,” that now is in their twenties and thirties and has buying power. Many more of us have found convenience and lack of taxes to further our cause of buying on the internet.

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The blame for these late packages has been put on the backs of the carriers, but think about how easy it is for the internet sellers to promise expedited services and not have to perform the services themselves. The tremendous growth of internet sales has also to share the blame for the lack of on-time service. This past holiday season our transportation system was asked to deliver 10% more packages than last holiday session, which brings me to the point of this article. The American transportation system is not capable of handling millions of more shipments in a timely manor. The largest carriers tried to get thousands of temporary employees for the holiday season and fell short thousands. Even though we have millions of people looking for employment, we don’t have millions who really want to work at a job that requires physical labor. We are also feeling stress with our driver shortages and this is even more stressed with the new HOS rules that require more rest and home time. For years we needed a national energy plan, but good ole American technology has helped us out of the need for foreign oil. Unfortunately I don’t think we can work out of this soon to be national crisis in transportation. I would suggest the Congress help us with a plan to solve this, but they can’t even figure out how to keep the national highway system funded. If we had the cooperation of our government and the two other governments in North American we could solve our transportation needs. Who knows if this will ever happen with politics being the way they are.

UPCOMINGEVENTS OTA MIDWINTER CONFERENCE Wed, February 26, 2014 At the Waterford Marriott Hotel, 6300 Waterford Blvd, Oklahoma City, OK 73118. All day event: February 26: 8am-6pm.

SAFETY AWARDS BANQUET Wed, February 26, 2014

EDITOR

The Safety Awards Banquet will be held offsite from the Midwinter Conference this year.

SHANNON HELTON

The Jim Thorpe Association and Sports Hall of Fame Museum, located at: 4040 N Lincoln Blvd., Oklahoma City, OK 73105. February 26, starting at 7pm.

OTA 82ND ANNUAL CONVENTION September 24-25, 2014 Save the Date! The OTA 82nd Annual Convention will be at the Choctaw Casino on September 24-25. We will have a new format with the Convention Classic golf tournament Wednesday before the Welcome Party.

Welcome We made it through 2013, phew! The government shut down, multitude of regulation changes, and an icy polar vortex was just the icing on the cake. I hope that you and your families had a wonderful holiday season despite the issues in Washington and abroad. Speaking of important topics, we’ve got some great information in this issue. Updates on the highly-debated Affordable Care Act, as well as thoughts on the Detroit Bankruptcy ruling, and we learn a bit more about our current OTA Chairman, Jim Klepper. I’ve known Klepper for about seven years now, and he is truly an inspiring character. I really enjoyed sitting down and learning a bit more him, and I certainly hope that you find it as fascinating as I did. While the government took a couple weeks off last fall, the OSMC and TMC were still hard at work. They each hosted their Fall conferences with great success. I encourage everyone to join the OSMC at their monthly meetings and the TMC at their workshops that they set up throughout the state. Both organizations are fantastic resources for all OTA members. What will 2014 hold? It’s already off to an interesting start. We’ll see you at the Midwinter Conference and learn some more about what’s in store for the industry.

For the most up-to-date event information, please visit oktrucking.org/events or contact Rebecca Chappell at 405.525.9488 or by email at rebeccachappell@oktrucking.org.

Enjoy this issue!

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Oklahoma Motor Carrier Magazine | Winter 2014

TRUCKING TIDBITS

FMCSA FINALIZES RULE TO SHUT DOWN CARRIERS BASED ON PATTERNS OF SAFETY VIOLATIONS FMCSA

The Federal Motor Carrier Safety Administration (FMCSA) will publish a Patterns of Safety Violations Rule in late January which implements the agency’s authority to shut down a bus or truck company if the company, or a company officer, has a history of purposely violating federal safety regulations. The rule is one of the new enforcement tools that the agency has developed in recent years to target high-risk carriers that endanger travelers by avoiding or covering up their negative history of safety compliance.

FMCSA intends to apply the rule in egregious cases in which it finds that a motor carrier has committed a pattern of unsafe practices, even if that particular investigation alone does not result in a downgrade of the carrier’s safety fitness rating. The new rule complements a rule adopted by the agency in 2012 to apply outof-service orders to reincarnated or chameleon carriers and to consolidate their enforcement histories. Today’s rule goes one step further by authorizing a complete revocation of the motor carrier’s authority to operate.

DAVE OSIECKI TO LEAD ATA’S LEGISLATIVE AFFAIRS OFFICE ATA

Today, American Trucking Associations President and CEO Bill Graves said Senior Vice President of Policy and Regulatory Affairs Dave Osiecki will also oversee the association’s legislative affairs efforts and team. Graves made the announcement following the departure of Mary Phillips, formerly senior vice president of legislative affairs. “Dave Osiecki has been a stalwart for the trucking industry since coming to ATA in 1996,” Graves said. “His work leading ATA’s policy and regulatory affairs team has been exemplary and given an ever more complex web of issues our industry is confronted with, it only makes sense to bring our policy and legislative groups together to improve efficiency and coordination.” “I’m excited and look forward to this new challenge,” said Osiecki. “It provides me with a greater opportunity to lead, learn and grow within this great organization.” Over the past 18 years, Osiecki has served in a number of roles with ATA, including senior safety engineer, executive director of two conferences, and most recently as senior vice president of policy and regulatory affairs since 2010. In his time at ATA, he has been instrumental in favorably shaping numerous trucking regulations, ATA’s policy priorities for several highway bills and crafting the association’s 18-point progressive safety agenda. Osiecki is a graduate of Pennsylvania State University and George Mason University.

Oklahoma Motor Carrier Magazine | Winter 2014

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TRUCKING TIDBITS

UPDATES ON THE AFFORDABLE CARE ACT Kelley Grace, CPA - Eide Bailly

New guidance on various aspects of the Affordable Care Act, commonly referred to as Obamacare, has been continuous. In November 2013, Notice 2013-71 was released modifying the “Use It or Lose It” requirements on flexible spending accounts (FSAs). The Affordable Care Act puts a cap on employee FSA contributions starting in 2013 of $2,500. Notice 2013-71 allows $500 of this $2,500 to be carried over to the following plan year and used for qualifying medical expenses incurred in the following year. To comply, employers will need to amend their plan document. The plan can still maintain a “run-out period.” This is the period of time in the year following the plan year in which qualified medical expenses of the previous year can be reimbursed. Plans adopting the $500 carryover can no longer have a grace period of up to two months and 15 days immediately following the plan year in which individuals may incur qualified medical expenses and receive reimbursement from the prior year’s FSA. In September 2013, Notice 2013-54 was issued providing clarification on health reimbursement accounts (HRAs). Starting in 2014, stand-alone HRAs will no longer be in compliance. There are limited exceptions to this rule which include retiree-only HRAs and HRAs that are HIPAA excepted benefits. Many businesses are scrambling since their existing HRA will no longer be in compliance. It is important to note that HRAs that are integrated with a group health plan are not impacted. Also, this new law applies to plan years starting in 2014. Therefore, employers may fully fund their employees’ HRA accounts up until the first day of their 2014 plan year. Also in September 2013, the IRS released proposed Section 6055 and 6056 regulations on the information reporting that large em12

Oklahoma Motor Carrier Magazine | Winter 2014

ployers and insurance carriers will need to file for calendar years beginning January 2015. It is anticipated that the information for Section 6055 will be reported on form, 1095-B, and Section 6056 on form, 1095-C. These forms will help individuals determine whether or not they can claim a premium tax credit for each month of a calendar year. It will also be used as a tracking system for the IRS. In July 2013, the Treasury Department announced the delay of the employer mandate. This mandate, which was set to begin in 2014 and is now delayed until January 2015, requires employers with 50 or more full-time equivalent employees to offer their full-time employees affordable and adequate health insurance or face potential penalties. Although this mandate has been delayed, businesses need to look at their staffing now as the measurement period for 2015 starts in 2013 (for those employers choosing a 12-month measurement period). The measurement period, is a period of time often referred to as the look-back period; when employers can look at their employees’ hours to determine if they meet the definition of a full-time employee. If employees are considered fulltime, employers will need to offer these employees adequate and affordable health insurance during the following stability period. The measurement period is a useful tool to help employers with variable-hour employees. There is also an administration period which falls between the measurement period and the stability period. This is the period of time in which the employer is to provide the employees, who are deemed full-time in the measurement period, the adequate paperwork to sign up for insurance on day one of the stability period; it cannot exceed 90 days. An example is an employer who chooses a 12-month measurement period, a

TRUCKING TIDBITS two-month administrative period and a corresponding 12-month stability period. The 12-month measurement period would run from November 1, 2013 - October 31, 2014; the administration period would run November 1, 2014 – December 31, 2014; and the stability period would run from January 1, 2015 – December 31, 2015. Employees who worked 1,560 hours or more during the measurement period would need to be offered insurance during the following stability period, calendar year 2015, which is when the employer mandate begins. This is a simple example of why businesses need to stay on top of the mechanics of the employer mandate as tracking of these employees has already begun.

of your full-time employees, and more. Obamacare is a reality and, therefore, it is important to understand the implications for your business. Have More Questions? Contact Kelley Grace or HealthCareReform@eidebailly.com

In May 2013, the Department of Labor issued Technical Release 2013-02 detailing the requirements of businesses covered by the Fair Labor and Standards Act (FLSA) to provide a written “Notice of the Exchange” to employees. This requirement was often overlooked by businesses. In September 2013, the DOL announced that although giving this notification is still applicable, there will be no penalty for failure to provide a notification to employees. That said, we still recommend tracking what and how your notification was distributed to employees.

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TRUCKING TIDBITS

NEW FEDERAL DATA AGAIN HIGHLIGHTS TRUCKING’S CRITICAL ROLE TO THE ECONOMY ATA

Recently released data from the Census Bureau and the Bureau of Transportation Statistics again showed that trucking is the dominant mode for moving freight in the United States. “The Commodity Flow Survey showed once again that trucks move the vast, vast majority of freight in the United States,” said ATA Chief Economist Bob Costello. “Since it is only updated every five years, the CFS report is a critical tool for policymakers and researchers in examining the freight market. The government should ensure that reports like it, including the Vehicle Inventory and Use Survey, are updated on a regular basis.” The VIUS was discontinued in 2002. Costello highlighted a number of the Commodity Flow Survey’s results as particularly enlightening: · In 2012, trucks moved 73.7% of all freight by value and 70% of the tonnage versus 3.3% of value and 15.8% of tonnage moved by rail; · The average length of haul for trucks is 212 miles; · Only 3% of freight tonnage moved on multiple modes – i.e. a train and a truck, or a barge and a truck; · Just 15.1% of all freight shipments were longer than 500 miles and only 9.7% traveled more than 750 miles. “The length of haul data is crucial, particularly when talking about rail and truck competition,” Costello said. “While feasible under certain conditions, the potential for rail intermodal to gain a significant amount of truck market share is limited. Now more than ever, the two modes are more likely to complement each other than compete for business. ”

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Oklahoma Motor Carrier Magazine | Winter 2014

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STATE MATTERS

WILL A DETROIT JUDGE’S GREEN LIGHT TO BANKRUPTCY RESULT IN RED LIGHTS FOR PENSION DEBT ELSEWHERE, INCLUDING OKLAHOMA? by Patrick B. McGuigan, CapitolBeatOK.com

A judicial decision in Detroit gives a green light to officials in the troubled city to continue bankruptcy proceedings, and clarified that government pension debt will be part of any settlement of government debt obligations. The ruling puts in the place the equivalent of a red light for some mounting pension debt, but a trio of Oklahoma officials carefully calibrated their response to Tuesday’s decision, saying its direct impact may be limited. Presiding over the largest municipal bankruptcy in American history, Judge Stephen Rhodes said Detroit’s emergency manager Kevyn Orr “did mislead the public about the status of pensions,” but that nonetheless pension debt can be included in the vagaries of the process. However, he also warned city lawyers he would not “lightly or casually” approve cuts to pension obligations. That Tuesday night, leaders of the Oklahoma Public Employees Association, which represents thousands of state government workers, had not responded to a request for comment on the Detroit ruling. Oklahoma Auditor and Inspector Gary Jones, a member of the state Pension Oversight Commission, commented the Detroit decision “is kind of a big deal, but it might not directly effect us in Oklahoma. Wisconsin was able to redo its pension obligations because their constitutional provisions permitted that.” In Oklahoma, despite recent reforms, “the underlying pension is considered a property right.”

Jones continued, “Judge Rhodes’ decision certainly makes the case that public officials all over the country need to address pension issues. I’m concerned that part of what’s upcoming is there will be some looking for an opportunity simply to get rid of debt through bankruptcy, without trying to make changes that will meet the obligation to employees.” Oklahoma Commissioner of Labor Mark Costello told Oklahoma Watchdog, “Chapter 9 permits reckless borrowers to go bankrupt. A direct result of this decision may be that lenders will be much more cautious in the future about making loans to places like Puerto Rico and Detroit. “The next big shoe to drop may be Puerto Rico. They have a population similar to Oklahoma’s, yet $100 billion worth of debt. A lot of that debt is due to corporate welfare schemes of one form or another. “People in many places may vote with their feet, as they've already done in Detroit. People have a right to flee economic wastelands.” John Estus, spokesman for the state Office of Management and Enterprise Services, formerly the Office of State Finance, told Oklahoma Watchdog, “Detroit’s bankruptcy has been a largely unprecedented event from day one, and this latest ruling surely gives pause to any entity with significant unfunded pension liabilities.” In Detroit, Judge Rhodes’ written opinion, and comments during his presentation Tuesday morning, evoked the city’s storied past as home of American automobile production, but also listed a long catalogue of problems related to debt, collapse of housing stock,

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STATE MATTERS poor public services and declining population. News reports state the local population peaked at 1.8 million in 1950, and is around 800,000 today. Government health insurance cuts and pension reductions are each under consideration in Detroit, which has $18 billion in longterm liabilities. Local officials estimate the funding gap for the city’s pension system at approximately $3.5 billion, much larger than first believed. Government employee union leaders there have asserted the pension system is fully-funded, but a national analyst, Andrew Biggs of the American Enterprise Institute (AEI) contends the system is only half funded. Biggs defended Judge Rhodes’ decision in a Tuesday post. While he expects public employees to fare better than many creditors or bond-holders in the process, Biggs said Michigan’s constitution provisions mean that while pensions cannot be cut arbitrarily, “bankruptcy is by definition a legal procedure by which contracts can legally be broken.”

“The news that Detroit can file for bankruptcy is a sign that at least to some degree, math and reality will be involved in determining the future of Detroit. Detroit has made unreasonable pension promises it cannot meet, has spent wildly and ignorantly, and is an example of what happens when government is not properly limited,” said Jonathan Small, policy vice president for the Oklahoma Council of Public Affairs, which advocates free market policies. Small concluded, “The story of Detroit is a warning to Oklahoma policy makers that Oklahoma can no longer kick the can down the road. Oklahoma must implement necessary, fundamental pension reform.” He advocates a defined contribution plan (in contrast to the defined benefit structure that characterizes most public pension programs in the U.S.) for all new employees covered in the state’s largest government pension. You may contact Pat at Patrick@capitolbeatok.com .

Before the city’s bankruptcy filing in July, about 40 cents of each incoming tax dollar was allocated to debt, and projected to rise to 65 cents in the next few years. In Oklahoma a fiscal policy analyst carefully applauded the Detroit ruling.

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STATE MATTERS

OKLAHOMA ECONOMY YIELDS MODERATED GROWTH IN 2013 Tim Allen, Deputy Treasurer for Communications & Program Administration The Oklahoma economy continues to advance but backed off the accelerator a little during 2013, State Treasurer Ken Miller said today as he released the state’s monthly gross receipts to the treasury report. “All major sources of revenue finished the year in growth territory, just not as robust as during the past few years,” Miller said. “National and state economic data, such as consumer and business confidence, real estate and stock prices, point to continued growth in the new year.” The growth in gross collections during 2013 was 3.2 percent, compared to 3.8 percent in 2012 and 9.6 percent in 2011. In December, a more than 10 percent drop in gross income tax collections pushed the bottom line down by almost one percent from December of last year. Monthly gross receipts were less than prior year collections only three times during 2013. However, gross income tax numbers underperformed the prior year during five months, with corporate income taxes missing the mark eight times. Corporate collections finished the year down by 1.6 percent from the prior 12-months.

Miller said performance in the oil patch is the brightest spot in the annual numbers. “After falling throughout 2012 and the beginning of 2013, gross production receipts have topped prior year collections for the past eight consecutive months and finished the year up by more than 9 percent over 2012,” he said. Sales tax collections indicate a Christmas shopping season marginally better than last year. December sales tax collections, reflecting sales between mid-November and mid-December, were $3.5 million or 1 percent higher than the same period of 2012. Last December, sales taxes were up by 5.9 percent over the prior year. Positive outlook Miller said that while the federal government provided impediments to growth during 2013, recent developments in Washington give reason to be hopeful in future months. “Taking the economy to the brink in the showdown over the federal budget and debt limit during the past year had a chilling effect on the nation’s economy,” he said. “But now that lawmakers have

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TOTAL REVENUE

974.77

965.61

-9.16

-0.9%

(1) Includes Collections for Counties and Municipalities (2) Gross Collections from OTC Details may not sum due to rounding.

finally approved a budget, perhaps some stability will be restored.” While the near term looks positive, Miller said long term economic challenges still remain with the Affordable Care Act, federal deficit spending and public pension problems across the nation, including in Oklahoma. “More must be done to bring Washington’s appetite for spending under control,” he said. “Plus, the implementation problems with Obamacare continue to prolong the uncertainty of its costs to individuals and businesses.” Other measurements During the past 12 months, figures from the Oklahoma Employment Security Commission show the number of those unemployed increased by 5,310, while the number of jobs dropped by 2,350. During that time, the unemployment rate increased from 5.1 percent to 5.4 percent.

STATE MATTERS

Monthly Gross Receipts vs. Prior Year January – December 2013 Percentage Variance

11%

10.1%

1% -0.9% -2.4%

-3%

n-1

Oklahoma Business Conditions Index anticipates economic expansion in Oklahoma’s economy during at least the first half of 2014. The index rate jumped to 60.2 in December from November’s rate of 49.3. Numbers above 50 indicate anticipated economic growth in the coming months.

December collections The revenue report for December shows gross collections at $965.61 million, down $9.16 million or 0.9 percent from December 2012. Gross income tax collections, a combination of personal and corporate income taxes, generated $340.64 million, a decrease of $38.19 million or 10.1 percent from the previous December. Personal income tax collections for the month are $284.73 million, down $6.88 million or 2.4 percent from the prior year. Corporate collections are $55.9 million, a decrease of $31.31 million or 35.9 percent. Sales tax collections, including remittances on behalf of cities and counties, total $368.49 million in December. That is $3.51 million or 1 percent above December 2012.

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Gross income taxes generated $4.11 billion for the year, reflecting an increase of $148.06 million or 3.7 percent from the prior calOffice of the State Treasurer endar year. Personal income tax collections total $3.528 billion, up by $157.42 million or 4.7 percent from 2012. Corporate collections are $579.62 million for the period, a decrease of $9.36 million or 1.6 percent over the previous year. Sales taxes for the period generated $4.267 billion, an increase of $91.84 million or 2.2 percent from the prior 12-months. Oil and gas gross production tax collections brought in $795.5 million during the 12 months, up by $67.46 million or 9.3 percent from the previous period. Motor vehicle collections total $723.93 million for the period. This is an increase of $22.04 million or 3.1 percent from the trailing 12 months. Other sources generated $1.552 billion, up $29.78 million or 2 percent from the previous calendar year.

Gross production taxes on oil and natural gas generated $69.84 million in December, an increase of $9.67 million or 16.1 percent from last December. Compared to November reports, gross production collections are down by $41,000 or 0.1 percent. Motor vehicle taxes produced $55.64 million, up by $3.46 million or 6.6 percent from the prior year. Other collections, consisting of about 60 different sources including taxes on fuel, tobacco, horse race gambling and alcoholic beverages, produced $131.01 million during the month. That is $12.39 million or 10.4 percent more than last December. 2013 collections During 20132, gross revenue totals $11.446 billion. That is $359.17 million or 3.2 percent higher than collections in 2012. Oklahoma Motor Carrier Magazine | Winter 2014

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MEMBER NEWS

SUMMIT HOLDINGS IS NAME OF MERGED DIAMOND COMPANIES AND ROBERTS TRUCK CENTER DEALERSHIPS The newly merged Diamond Companies and Roberts Truck Center dealerships today announced the name of their new organization. The new company will be called Summit Holdings and will do business as Summit Truck Group, Summit Bus, and Summit Lease & Rental. Annual revenues for Summit Holdings will approach $1 billion. In announcing the new name, the three partners, Richard Sweebe, Blaine Roberts and Blair Roberts, said, “We are a new company with a proud 72-year combined history of serving the commercial truck and bus industries. Our new name embodies the strong reputation we have built in the markets we serve. Summit will continue to grow and deliver a higher standard of value to our customers because of our dedicated and talented employees and our commitment to integrity, service and quality in all that we do.” The new Summit logo uses bold orange and grey lettering representing the merger of the two privately held family businesses. An ascending line across the letters symbolizes the drive to grow and to keep customers operating at peak performance.

Summit Holdings offers comprehensive transportation solutions that include new and used trucks and buses, parts and service, leasing and rental, financing and more. Summit Holdings is a privately held company that does business as Summit Truck Group, Summit Bus, and Summit Lease & Rental. The company operates 29 commercial truck and bus dealerships in Arkansas, Kansas, Missouri, New Mexico, Oklahoma, Tennessee and Texas. Summit Truck Group represents and services International®, Kenworth, Volvo, Mack, and Isuzu commercial trucks, and Crane Carrier specialty vehicles. Summit Bus represents and services IC Bus™, ElDorado National and other commercial bus brands. Summit Lease & Rental provides commercial truck lease and rental and offers mobile and dedicated maintenance services through its 17 Idealease locations. Summit delivers a higher standard of value with more than 1,300 employees, 420 technicians, 440 service bays, and over $25 million in All- Makes stocked parts. Additional information can be found at www.summittruckgroup.com.

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Madewell & Madewell, Inc., since 1953 405.399.2201 • Jones, OK Oklahoma Motor Carrier Magazine | Winter 2014

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MEMBER NEWS

FULL-SERVICE TRUCK REPAIR AND MAINTENANCE COMES TO INLAND TRUCK PARTS IN TULSA Inland Truck Parts

Inland has expanded its presence in the Tulsa area. After years of serving the truck parts needs of the local community at 5454 South 108th East Avenue, Inland has acquired a second location to provide full-service truck repair and maintenance. The new service shop, formerly Midwest Diesel, shares the schedule of the parts store: open weekdays from 7:30 to 5:30 and Saturday from 8:00 to 4:30. It's located at 300 North Hickory Avenue in Broken Arrow. "We're now able to serve the Tulsa area with a complete range of services, in addition to the comprehensive parts inventory we've always offered," said Inland General Manager Jay Oney. "And we're not finished yet. In late 2014, we plan to consolidate everything under one roof for even more customer convenience." The new Inland service capability covers everything from light-, medium- and heavy-duty trucks to SUVs and 4x4s. The addition of fast, professional on-the-truck service now provides customers everything from diagnostics to extensive repairs. Inland also sets the industry standard for rebuilt and remanufactured transmis-

sions, drivelines, clutches and more. An in-house gear shop and on-site reman facility guarantees quality control and quick turnaround. "This will be a real benefit to our customers," said Inland Service Manager John Kaiser, former owner of Midwest Diesel. "Inland is 100% employee-owned, so we're 100% committed to delivering the fast, high-quality service our customers deserve." Established in 1944, Inland Truck Parts Company is an employee-owned organization specializing in truck parts, remanufacturing and service. Inland offers parts and shop services at 28 locations in Iowa, Kansas, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Texas and Wyoming. Full-service truck repair and maintenance, as well as Pro-Guardian速 Breakdown Prevention, is currently offered at 24 Inland Truck Parts & Service locations. For more information, visit http://www.inlandtruck.com.

TlYory al FEn M oh SwAith J E

WHAT IS THE OSMC? The Oklahoma Safety Management Council (OSMC) is comprised of safety professionals from around the state. These professionals are committed to highway safety and are dedicated to the transportation industry. These professionals come from all aspects of the trucking industry and it is that expertise that makes this council one of the very best in the nation. How do we do this? Through education. By working with federal and state agencies, we learn as much about the rules as we can, then we work with each other to help train each company. The OSMC also helps the federal and state agencies in the same manner, each in turn getting to learn from the others. How does this help a company? For every prevented accident and injury, companies save thousands of dollars that would have been paid out unnecessarily. As the highways became more congested, the potential for accidents rises. The OSMC also has outreach programs to help educate the general public, using the NoZone trailer and school â&#x20AC;&#x153;Truck Touchâ&#x20AC;? programs. Teaching the public how to behave around a truck will result in safer roads.

Oklahoma Motor Carrier Magazine | Winter 2014

Oklahoma Commercial Auto Program Using an A.M. Best “A” (Excellent), VIII Rated Carrier Desired Classes: • Contractors • Food Delivery • For Hire Truckers • Manufacturers • Non-Trucking Liability • Public Auto • Sand & Gravel and Mix-In-Transit Operations • Specialized Delivery • Waste Disposal • Will Consider New Ventures!

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MEET THE CHAIRMAN:

JIM KLEPPER 30

Oklahoma Motor Carrier Magazine | Winter 2014

OTA Chairman Jim Klepper may run a nationwide legal team devoted to representing commercial drivers, but heâ&#x20AC;&#x2122;s also a game changer. Heâ&#x20AC;&#x2122;s looking ahead for the next goal, next big thing, and preparing the OTA and his company for the future.

My training says ‘Keep looking.’ There’s always a way, ethically, legally, morally. There’s always a way now serves as Director Emeritus to the Arkansas Board. In addition to trucking and law, Jim is the Immediate Past Chairman of the Oklahoma Humane Society, an Oklahoma based non-profit organization that helps find homes for dogs and cats as well as providing low cost spay and neutering programs to reduce the euthanasia of pets in Oklahoma. It’s not often that Allied members become Chairmen; in fact, it has been nearly 10 years since the OTA had an Allied member as Chairman. Despite the differences between running a nation-wide law firm and a nation-wide trucking company, Klepper says, “We all have the same issues; getting people to do the correct thing as well as working within the new rules and regulations directed toward trucking.” As an attorney, he has a certain way of analysing situations; “My training says ‘Keep looking’. There is always a way, ethically, legally, morally. There is always a way.” When asked what would be his most valued experiences, he replied: “Having conversations at both trucking and law events nationwide to discuss different ways to meet the new rules and regulations as well as how to combat some of the questionable rules and regulations being proposed. The Oklahoma Trucking Association is well suited to go to bat for our members, both in Oklahoma and in Washington, for common sense rules and regulations.” No stranger to adapting to changing times, Jim graduated from college as a pharmacist and did what most people do right out of college, he went straight to work. But when he was just starting out, he told his wife, that what he really wanted was to go to law school. After three years he purchased his own pharmacy, Jim’s Prescription Shoppe, in Ada, Oklahoma. He ran his pharmacy for twelve years until he felt the old call of law school. This time he answered the call. Being an older student he spent his time finding ways to graduate early and was able to finish the three year program in two and a half years. Asked how he did that, he replied, “Time management!” 1991 presented attorney Klepper with the opportunity to enter the brand new field of CDL law when it became the law of the land in April 1991. He wanted to limit his law practice to the defence of CDL truck drivers and the carriers they worked for. But that idea quickJim Klepper, President and Founder of Drivers Legal Plan, was elected Chairman of the Oklahoma Trucking Association this past September at the annual convention. To all that know him, Jim is considered an innovative and forward thinking individual, who is incredibly well rounded and knowledgeable in both the law and the trucking industry. Jim has been a member of the OTA’s Board of Directors for over five years and brings a wealth of national and regional experience to the Board. He has served on the American Trucking Associations’ Board, and currently serves on the Truckload Carriers Association Board of Directors, both national associations. He also served two terms on the Arkansas Trucking Association, and

ABOVE Jim Klepper of Drivers Legal Plan and Interstate Trucker is the first Allied OTA Chairman in 10 years.

RIGHT Klepper has worked hard for his national law firm devoted to representing truck drivers. Oklahoma Motor Carrier Magazine | Winter 2014

ly expanded. “My thinking went like this over the next few hours, ‘We can represent these drivers locally. Well, if we can do that, then we can do it on a state level too, and then a regional level, and finally why not nationally.” And that is exactly what he did. Since 1991 Jim, and his national law firm Drivers Legal Plan, have represented drivers and carriers nationwide.

Now my work family and my actual family coincide; I’m a very lucky man.” Jim reflects. One of the ways Klepper’s ventures have been so successful, is that he has the ability for getting people what they want. He has always had a knack of combining personal human interaction with all the advantages of technology. “We try to continually find out exactly what a client, a court clerk, or judge, needs, and then make sure via technology that we can consistently provide exactly that.”

Technology can solve a multitude of problems. Crafting a unique business model in the law world, Jim offered 40-hour work weeks to attorneys. Something that is nearly unheard of in law firms. “I saw that lifestyle was becoming more important to allow attorneys to spend more time with their families. By offering steady hours to everyone in the law firm, he was able to be open from the time the courts opened on the East coast until they closed on the West coast. This was and is still a unique position for truck drivers to be able to speak with their attorney representing them from 7:00 am to 7:00 pm Central time. “I would not have been able to accomplish this change in careers without the support of my wife of almost 50 years, Pam Klepper. She has been a rock all of our lives and I give most credit to her for everything we have accomplished.” A little over five years ago, Jim invited his son Brad to come work with him. Brad was an accomplished attorney at the largest law firm in Oklahoma at the time and saw the opportunity to join a law practice designed for attorneys to fulfil their legal goals and still have time for family. “That was the happiest day of my life, when my son came to work with me.

If a court clerk wants something a certain way in one state, and another way in another state, he has that documented. “Technology can solve a multitude of problems.” By creating databases for each court’s needs he reduces the chance of human error and makes life easier for the court, which never hurts. His drive for technology and entrepreneurial spirit are things that have helped the OTA as well. This past year, Immediate Past Chairman, Bob Peterson (Melton Truck Line) and Klepper met to discuss a way to revamp the OTA’s image online. They managed to not only update the website, but to monetize it as well. By developing a Technology Sponsor program for the OTA’s online presence, they have turned what was once an expense into something that has continually paid a return, and laid the framework for consistent income and updating moving forward. Klepper has already left his mark on the OTA in other ways. He served on the OTA membership committee for several years, and they instituted the Adopt-a-Carrier program to encourage new members. This

ABOVE Klepper is an avid Oklahoma City Thunder fan and supports various community and charity organizations.

BELOW Drivers Legal Plan may be a national law firm, but it is based in Oklahoma City.

program encourages current OTA members to pay for the first year of membership for a new carrier member to demonstrate the benefits of membership. But Klepper knows that the secret to keeping these new members is to add value to their OTA experience. “Make the OTA something you willingly pay for. Information is what you need to run a business, and information doesn’t do you any good unless you take action.” He hopes to get more information about current and proposed legislation to members, to participate in more calls to action, and for all the OTA industry partners to collectively benefit from the union. Klepper continues to look ahead, to try and anticipate the next bend or trend in both trucking and the law. He firmly believes there will be a new frontier in electronic law. Court filing procedures are being handled online more and more these days, a trend that is surely to continue. “Technology will be the key,” he says, “the Government is going to require more information from us, and more tracking.” He believes that we are just at the tip of the proverbial iceberg in that regard, and we’ll have to all adapt quickly to the shift. Jim Klepper has already been a substantial asset to our Association, and relishes his chance to contribute even more. He understands and embraces the entire trucking industry, and collaborates with carriers and allied members alike. Klepper’s unique vision and entrepreneurial spirit shine throughout his successes with Drivers Legal Plan and all of his ventures. His drive and leadership will no doubt bring great new successes to the Oklahoma Trucking Association during his Chairmanship. Oklahoma Motor Carrier Magazine | Winter 2014

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FALL TECHNOLOGY WORKSHOP HIGHLIGHTS Over 130 industry professionals and diesel technology students gathered in Oklahoma City November 13 for the third annual Fall Technology Workshop sponsored by the Oklahoma Trucking Association’s Technology Maintenance Council. Greg Price, President/CEO of United Petroleum Transporters kicked off the event relating how two small businesses, Oklahoma Tank Lines and Love’s Travel Stops started by his father and a friend, had prospered and grown into the large multi-state companies they are today. Price highlighted career opportunities and the critical need for technicians and fleet maintenance professionals in today’s trucking industry. Larry Rambeaux from Purkey’s Fleet Electric followed with a presentation on widespread electrical interconnection and the importance of system troubleshooting to diagnose and repair today’s trucks. During a 2-hour walk around lunch sponsored by T & W Tire, attendees discussed job opportunities and maintenance issues at tables staffed by fleet representatives and industry suppliers. Rich Harrold and students from Tulsa Technology Center were victors in the Pinewood Big Rig Challenge, sponsored by Borg Warner. Continuing the theme of “An Electrical Field Day,” attendees were able to choose three of five afternoon training sessions conducted by Lite-Check, Truck-Lite, Purkey’s Fleet Electric, Meritor, and Gates Corporation. Technicians and students were encouraged to bring their own meters for hands-on activities during these sessions.

Oklahoma Motor Carrier Magazine | Winter 2014

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OSMC FALL SEMINAR

TOP Mac McDonald (Coffeyville Resources) and Kimberly Gonzalez (Hoffmeier, Inc.) display the ATA’s Cum Laude Award for excellence in a state safety council. FAR LEFT Louis Thompson (Beaver Express) speaks at the 2013 OSMC Fall Seminar

LEFT Attendees at the 2013 OSMC Fall Seminar in Jenks, Oklahoma.

General Sponsors: Braum’s, Inc. Groendyke Transport, Inc. LuGreg Trucking, LLC Program Sponsor: Beaver Express

The annual OSMC Fall Seminar was held October 24 and 25 in Jenks, Oklahoma. Thirty-two OSMC members met to learn more about safety in the industry, as well as learn about important updates with state agencies as well as national updates. John Mallory (John Christner Trucking) welcomed the attendees. Then Kimberly Gonzalez (Hoffmeier) gave the OSMC update, and Dan Case gave the OTA update. Jerry Whorton (Consolidated Benefits) gave important information about Worker’s Compensation, and Trooper Terry Shiever gave the Oklahoma Highway Patrol general update. Mark Brown (Central Tech) spoke about the driver shortage and its current role in the industry, and then Steve Niswander (Groendyke) gave the ATRI and ATA updates. Speakers on the second day included Phil Valois (Pacer) with a Safety Class, Cheryl Owens (John Christner Trucking) on Driver Retention, Todd Hensley (Driver IQ) on Criminal Background Checks, and Travis Bradshaw (Consolidated Benefits) on the Affordable Care Act. Mac Kirk, Eric Pearson, Larry Ramsey, and Bob Neal from the FMCSA rounded out the conference with a general update and audit survival tips. Oklahoma Motor Carrier Magazine | Winter 2014

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Holiday Open House

TOP Michael Mayer (Rush Truck Center), Adam Dye (Southwest Trailers & Equipment), Bob Acker (Bruckner’s Truck Sales), and Greg Price (UPT).

The Oklahoma Trucking Association held their annual Holiday Open house on December 12 at the OTA headquarters in Oklahoma City. Each year, donations are accepted to benefit metro-area charities The Children’s Center, and Central Oklahoma Humane Society. The annual event also encourages members and legislators

LEFT Oklahoma Corporation Comission Chairman Patrice Douglas and Dan Case

ABOVE Oklahoma Corporation Comissioner Dana Murphy and Louis Thompson (Beaver Express)

to meet up at a casual reception, and invites members to tour the OTA headquarters. Over $850 was raised this year for the charities during the open house. Thank you to all that attended this year, and for all of our members’ support over 2013! Oklahoma Motor Carrier Magazine | Winter 2014

ADVERTISING INDEX American Transfer & Storage

14 ProDrivers 29

Bell & Company

19 Shannies Art & Design

Aon Risk Solutions

Brucknerâ&#x20AC;&#x2122;s Truck Sales

Burnett Insurance Corporation Central Tech

Crawford-Phillips, Inc.

13 Rush Truck Centers

18 Southern Tire Mart

15 Southwest Trailers & Equipment 10 Summit Truck Group

21 38

14 ATC Freightliner

Drivers Legal Plan

27 United Petroleum Transports

Environmental Management

36 Utility Tri-State, Inc.

Great West Casualty Company

Cummins Southern Plains

6 T&W Tire

EideBailly 26 UPS 34 Frontier International

Inland Truck Parts & Service

43 Wingfoot Commercial Tire Systems

Insurica 26 International Trucking Consultants

Mack Truck Sales of Tulsa, Inc.

J.J. Keller & Associates, Inc. Madewell & Madewell, Inc. MHC Kenworth

Midlands Management Corporation Midwest Decals

24 25 4

29 13

INTERESTED IN ADVERTISING? Itâ&#x20AC;&#x2122;s a great way to support your association and get the word out about your business! You can reach ove 5,000 industry professionals each quarter by advertising in the Oklahoma Motor Carrier Magazine. For more information or a current media kit, please visit http://www.oktrucking.org. or contact Shannon Helton at (405) 445-1790 or by email at shannonhelton@oktrucking.org.

Oklahoma Motor Carrier Magazine | Winter 2014

Member Spotlight Beaver Express

Founded: 1943 Headquarters: Woodward, Oklahoma Owners: Mike & Brian Stone families and the Ricky Frech Families

How did it all begin? In the spring of 1943, Mistletoe Express gave up operating in northwest Oklahoma, and an entrepreneur named Floyd Hamm overtook the express service route between Woodward and Beaver, Oklahoma. Following the traditional naming system used by the railroad industry, he named the company after the farther point served, thus Beaver Express was born. They got their start delivering newspapers for the Oklahoman to northwest Oklahoma. Since that time, Beaver Express has expanded by leaps and bounds. In 1958, the company was sold to Clyde Reeves, current President Mike Stone’s grandfather. Beaver Express now covers a six-state area, and continues their freight and small package express to an ever-expanding area. What do you think sets you apart from other carriers? Our culture of trying to take care of the customers. We sometimes do crazy stuff to make sure that customers to get their freight on time. It’s not uncommon for a terminal manager, or even the president of the company to take it to them even so they can get their freight on time. We also have a unique network of services that enables us to give local service, even in rural areas. Some of the bigger guys will only take a load to a small town when the truck is full, but we’re out there every day, early, regardless of the volume. Our delivery routes beat the competition and we deliver before our competition. We’re delivering every day, so we have a very loyal customer base. We’re able to reach these rural areas regularly, and our competition even uses us to deliver some of their freight. What issue is the most important to your company right now? Finding and hiring quality drivers. The driver shortage is key. Because we currently have to hire temp drivers right now in our bigger terminals. We’d prefer to hire full-time, good-quality, safe, customerfriendly drivers. But because of the shortage of help, we have to use temp drivers. What do you think the greatest benefit from being an OTA member is? I would say it’s a combination of the OTA offices keeping us up-to-date on things going on, not only on the state level, but the national level too. The second would be the lobbying. The uninsured motorist bill was really important to us, and through the OTA, we were able to pass it this past spring. We’re not members of the ATA, but I get most of what I need from the OTA. OTA and the KMCA are probably the best resources for information that we have.

Oklahoma Motor Carrier Magazine | Winter 2014

FRONTIER INTERNATIONAL TRUCKS

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