2009 Lifeliner Magazine (Issue 4)

Lifeliner IOWA MOTOR TRUCK ASSOCIATION Winter 2009

Getting Out what you Put In INSIDE: IMTA Winners Spotlight New Chairman Introduction Carrier Spotlight: Jerico Services Inc.

Do something nice for your engine.

Hard-working diesel engines deserve a little pampering.

So treat yours to soy biodiesel.

For about the same price you’re paying now, a 2 percent blend, called B2, can significantly reduce engine wear without sacrificing horsepower, torque or fuel consumption.

Show your engine a little appreciation. Find out more at biodiesel.org, and visit BQ-9000.org for a list of certified suppliers.

�

©2007 United Soybean Board. (28394-5/07)

The Iowa Biodiesel Board would like to recognize Iowa’s Motor Truck Carriers for their hard work and perseverance through the recent severe economic downturn.

Iowa’s biodiesel industry wants to work with you over the long haul to ensure our Nation’s energy security and to provide a domestic fuel for your equipment.

Thanks for choosing Biodiesel! www.iowabiodiesel.org 2

Lifeliner

Winter 2009

In this Issue

IMTA Staff

31

Brenda Neville, CAE President

Don Egli

Director of Safety and Security

Amanda Madison

Administrative Assistant

DeAnn Moody

Executive Assistant

Holly Mueggenberg

Communications & Education Manager

Mike Spalla

Membership Manager

Articles Chairman’s Message............................. 5 President’s Message............................... 7

12 22

IMTA Winners Spotlight.....................8-11 IMTA Chairman Spotlight................12-13 Legal Update....................................... 14 Legislative Update................................ 15 Carrier Spotlight.............................17-19 Safety Insight....................................... 20 Business Environment........................... 21 Feature Article................................22-25 Department of Labor.......................26-27 National Update.................................. 29 Welcome New Members....................... 30 Renewable Fuels.................................. 31 Education Update................................ 32 Membership Update............................ 33 Members in the News.....................34-35 Your Association.............................37-41

Our Supporters Iowa Biodiesel Board..................... 2 Great West Casualty...................... 4 Interstate Power Systems................. 6 Medix Occupational Health.......... 16 Zips Truck Equipment................... 16 Quality Services Corp.................. 16 JJ Keller...................................... 28

Iowa Soybean Association............ 30 Iowa City Brake Inc...................... 30 Hanifen...................................... 30 Central Trailer Service.................. 36 HireRight..................................... 36 Allied Oil & Supply Company....... 44.

Midwest Wheel Companies.......... 48

Your Association in Action..........42-43, 45 Final Word.....................................46-47 Winter 2009

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Joe Morten & Son dba Reback Truck Ins. Reynolds & Reynolds Donaghy-Kempton Edwards-Brandt Mel Foster Odebolt Ins. Peoples Ins. Millhiser Smith Motor-Ways, Inc. Sioux City, IA Des Moines, IA Des Moines, IA Mason City, IA Davenport, IA Odebolt, IA Urbandales, IA Waverly, IA Cedar Rapids, IA 800-383-4848 515-243-1724 515-288-8545 641-423-0675 563-359-5446 712-668-2283 319-352-6327 319-365-8611 515-266-1113

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Chairman’s Message Bob Kohlwes, BTI Special Commodities, Inc. As we close in on the year 2009, I have to admit, I am ready to have this year behind us. I think I probably speak for most of the membership too. I think the last 12 months have been some of the most challenging that I have experienced throughout my entire career in the trucking industry. The economy has been a perpetual disaster and I am not certain it is going to improve any time soon.

The uncertainty that has accompanied the past 12 months has been difficult to handle as well and I believe this uncertainty will continue to prevail moving forward. As an entrepreneur, I have always felt that one of my greatest strengths is that I have been able to identify the problem and then tackle that problem by developing solutions and strategies that enable me to get the problem solved. That type of strategy is very difficult to employ when there are so many “unknowns” looming on the horizon, so it has been a continual challenge and I predict that this environment will continue for a while longer too.

I love the trucking industry and have always loved running a trucking company. I have found great pride in working with the employees, the drivers, the vendors, the customers and my colleagues in the industry. I still take great pride in working with all of these folks but the challenging economic times have of course impacted those working relationships as well. I feel very fortunate to be surrounded by a number of great people within my company and within this industry that really continue to be the only bright spot in the industry. I think most of us in the trucking industry feel the same way which brings me to the positive aspect of this column…the Iowa Motor Truck Association.

It is tough out there right now but I have discovered that my involvement and membership in the Iowa Motor Truck Association is now paying big dividends.

Having access to other carriers is extremely important in times like this. I have developed working relationships with so many other members that I have found their support and their insight to be of great value. In addition, I believe that IMTA continues to grow

in strength and effectiveness in serving the membership. Now more than ever, trucking companies are being forced to make tough business decisions and having the resources available by the association continues to offer great value to the members.

On top of the challenging economic times, I believe the political landscape is less than favorable for those of us in business. I see and hear the list of proposals and I have to wonder why I am even running a business. But, I take comfort in knowing that IMTA is working on my behalf to fight these proposals and be a voice for my business and countless others. This too is an environment that is not going to change anytime soon, but keeping up a strong fight and presence is vitally important and IMTA’s legislative efforts gives me some hope for the future.

I am realistic enough to know we won’t be able to defeat every bad piece of legislation but I certainly don’t want to think about the outcome if we had NO REPRESENTATION. As I have traveled throughout the state, I sense that the membership shares that same respect of the association efforts on being an advocate for our industry and I am optimistic that the support will only grow.

I certainly don’t like being the pessimist but I believe I am a realist. I believe we

will continue to face challenging times and I can only hope that a year from now, we have a different story to tell. In the meantime, however, like many of you, I will continue to work harder than I ever had to make less than I ever have. I know, I question it as well but like many of you….I don’t know anything different and really don’t have a choice. However, the one bright side to this whole situation is the association and its efforts on your behalf. I am proud to be associated with IMTA and proud of the work they do for the industry.

I know you may question whether you can afford to write that dues check but I will remind you that you can’t AFFORD NOT TO WRITE A DUES CHECK. IMTA is truly an organization that is on our side and now more than ever, we can’t desert our mission.

It is tough out there right now but I have discovered that my involvement and membership in the Iowa Motor Truck Association is now paying big dividends.

Mark Zieman - Cherry Valley Enterprises, Governor Terry Branstad and Bob Kohlwes - BTI Special Commodities, Inc.

Winter 2009

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DD15

Parts Service Support PowerSystems

6

Pride in Service

Minneapolis, MN 800-222-6060

Davenport, IA 800-787-4602

Omaha, NE 800-348-1356

Fargo, ND 800-999-4903

Sioux Falls, SD 800-348-3042

Virginia, MN 800-292-0149

Billings, MT 800-823-4334

Lincoln, NE 888-275-7590

Grand Forks, ND 800-999-5207

Gillette, WY 800-677-7720

Des Moines, IA 800-348-3062

Missoula, MT 800-735-6336

Bismarck, ND 800-999-5812

Williston, ND 800-821-7298

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Winter 2009

President’s Message Brenda Neville, Iowa Motor Truck Association I recently have spent a lot of time with members from all over the state. As we embarked on our annual member outreach road trips, I have been able to visit with members from across the state and realize that they are all suffering from this ongoing economic downturn.

A very consistent message emerged as we called on carriers with 5 trucks or 500 trucks, the economic rebound is very slow and frustrating. This time of year is typically a slow time anyway and now with the added pressure of a poor economy, many carriers are facing challenges unlike anything they have seen and in some cases simply “holding on for dear life”.

From the association perspective, it is equally frustrating because there is virtually nothing we can do to alleviate the pain and suffering. Our best defense as your association will continue to be a reliable source of information as the less than favorable economy prevails.

In times like this, the association has the opportunity to serve the membership in a different way. We continue to see an increase in participation at all levels and members are now utilizing the association in ways that they didn’t before. Our numbers are on the rise for educational sessions and our auditing services. We have had an increase in the number of incoming calls as members have had to slim down their staffs and are calling on us more often to answer their questions and provide information.

Members are taking advantage of the expertise we can offer in a variety of areas and most importantly, members are energized and engaged as we face legislative issues and proposals that do nothing to help business.

IMTA has always been a strong and effective advocate for Iowa’s trucking industry, that principle alone is what the association was founded on. Over the years, many legislative proposals have gone down in a puff of smoke because of the efforts of your association leaders and the members. Over the past decade however, grassroots involvement started to wane from the membership. It wasn’t because members had lost interest in the legislative efforts of the association, they simply had other priorities. Over time however, the legislature and its leadership changed and now our state is facing historical budget deficits.

The current situation has now gotten the attention of everyone and IMTA members once again have demonstrated

their leadership as we prepare for battle in January.

Over the course of the last six weeks, I have heard from more IMTA members than I have in the 20+ years I have worked for IMTA. Members are fed up with our elected officials and more than unhappy with the direction our state and nation are moving. As we enter the 2010 legislative session, the list of threats is longer than ever.

Each week, it seems that another BAD legislative proposal is revealed and members are ready to take a stand. It will undoubtedly be a very tough legislative session. Not only will we once again be fighting a biodiesel mandate proposal we will also see a number of harmful labor issues that we will need to defeat. In addition, we now have the added pressure of fighting off numerous groups that want to divert road fund money and numerous state agencies that are looking to our industry to ease the burden of their agency deficits. We will be attacked on all fronts and our ability to defeat all of this bad legislation for a THIRD YEAR is going to be very difficult…but not impossible. I say that because I have seen the results of our efforts in the past and have a tremendous amount of faith in IMTA leaders and members.

candidates and legislators that identify with our goals and objectives as business owners. These are some areas in which we do have a degree of control and I urge you all to get involved and engaged in these important issues not only here in Iowa but on the national level too. For too long, too many people have depended on others to fight these battles and we are now at a point where we need as many people as possible to get on board and help us send a message that “enough is enough!” I have no doubt that IMTA members will rise to the challenge and I

IMTA has always been a strong and effective advocate for Iowa’s trucking industry, that principle alone is what the association was founded on. look forward to working with each and every one of you as we begin this critical legislative session. Please don’t hesitate to call or contact your association to learn more about your involvement in these important issues. You do make a difference and together we will be successful. See you at the Capitol!

IMTA members always step up when needed and I am confident that once again, Iowa’s trucking industry will lead the way in defeating bad business proposals. IMTA members have already demonstrated their commitment as they have educated themselves on the issues, contributed to the Iowa TRUCK PAC and contacted legislators on a regular basis.

I have a growing list of members who have volunteered to come to Des Moines when needed to talk about an issue and demonstrate their support of our advocacy efforts as we move into the 2010 session. I am more than happy to add your name to that list!

While the association cannot change the economy or the speed in which the economy recovers, we can change the direction the state is moving through our legislative efforts. We can successfully defeat some of these proposals and we can make a difference by investing in the

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IMTA Winners Spotlight 200 9 Grea t We st Ca su a l t y C o m p a n y F l eet S a f e t y A wa r d s

Seated: Amiee Hanson, Barr-Nunn Transportation, Inc., Adrian Dickey, Harold Dickey Transport, Inc., Tim Whitney, West Side Transport, John Briley, Jacobson Transportation Company, Inc., Randy Kopecky, CRST Van Expedited, Inc., Jim Wilkins, Decker Truck Line, Inc., Dave Dickey, Harold Dickey Transport, Inc., Jon Osborn, Johnsrud Transport, Inc., Kyle Krause, Solar Transport, Ralph Arthur, Ruan Transportation Management Systems Standing: Lowell Grunwald, Jerico Services, Inc., Mark Olson, Olson Explosives, Dan Stevens, Farner-Bocken Company, Dan Gardner, Wal-Mart Transportation, LLC, Al Koenig, Midwest Specialized Transportation, Inc., Clayton Fisk, Warren Transport, Inc., Rick Duffek, Standard Forwarding Company, Inc., David McDonnell, ABF Freight System, Inc., Rick Hinkle, Con-Way Freight, Jeff Simpson, Mid Seven Transportation Company Not Pictured: G.L.E. Trucking, Inc., FedEx Freight

Truckload Carrier 2-3 million miles Barr-Nunn Transportation, Inc.

Tank Truck – Bulk 0-1 million miles Harold Dickey Transport, Inc.

Private Carriers 1-5 million miles Farner-Bocken Company

LTL Carrier 6-8 million miles ABF Freight System, Inc.

Truckload Carrier 3-4 million miles Harold Dickey Transport, Inc.

Tank Truck – Bulk 1-3 million miles Johnsrud Transport, Inc.

Private Carriers Over 10 million miles Wal-Mart Transportation, LLC

LTL Carrier 10-15 million miles FedEx Freight

Truckload Carrier 4-5 million miles West Side Transport

Tank Truck – Bulk 3-5 million miles Solar Transport

Heavy Haulers 0-1 million miles G.L.E. Trucking, Inc.

LTL Carrier 10-15 million miles Con-Way Freight

Truckload Carrier 6-8 million miles Jacobson Transportation Company, Inc.

Contract Carriers Over 10 million miles Ruan Transportation Management Systems

Heavy Haulers 1-2 million miles Midwest Specialized Transportation, Inc.

Agriculture Commodities 1-2 million miles G.L.E. Trucking, Inc.

Truckload Carrier 8-10 million miles CRST Van Expedited, Inc.

Private Carriers 0-500,000 miles Jerico Services, Inc.

Heavy Haulers Over 5 million miles Warren Transport, Inc.

(other) Common Carrier 0-5 million miles Mid Seven Transportation Company

Truckload Carrier Over 10 million miles Decker Truck Line, Inc.

Private Carriers 0-500,000 miles Olson Explosives

LTL Carrier 5-6 million miles Standard Forwarding Company, Inc.

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IMTA Winners Spotlight 200 9 Grea t We st Ca su a l t y C o m p a n y F l eet S a f e t y A wa r d s Mid Seven Transportation was the proud winner of the 2009 Grand Trophy Fleet Safety Award Winner. Mid Seven Transportation is a flatbed carrier headquartered in Des Moines, and operates over 120 step decks and flatbeds. Mid Seven Transportation proudly delivers goods to 41 states and beyond.

Mid Seven Transportation was awarded the 2009 Grand Trophy because of their outstanding safety record and accident free miles driven in the state of Iowa. Driver selection and training are the most important part of the safety program at Mid Seven Transportation.

Mid Seven takes great pride in its efforts to communicate with drives and help them when they have issues. Mid Seven founder, the late Verne Simpson always said that the driver’s were the company’s biggest asset and that same philosphy exists today.

Randy Miller, Great West Casualty Company and Jeff Simpson, Mid Seven Transportation

All IMTA members are eligible to participate in the annual safety awards program. Several different selection phases are implemented. A special thanks to Great West Casualty for sponsoring the award and congratulations to Mid Seven Transportation for receiving this prestigious award.

200 9 Safe t y Pr ofe ssi on a l o f t h e Ye a r Kathy Barber with Elliott Bros Truck Line, Inc. was awarded the 2009 Safety Professional of the Year.

Kathy has been employed at Elliott Bros for 25 years. She is responsible for 2 employees and 68 drivers. Kathy’s main duties include Recruiting OTR and Local Drivers, Training, Log Compliance and Audit, Drug & Alcohol Testing, HAZMAT Program, Safety Meeting Facilitation, Monthly Company Newsletter, Company Advertising, Fleet Safety Promotion, and Driver Advocacy.

Kathy Barber, Elliott Bros Truck Line, Inc.

“Kathy has always been a loyal and dedicated employee that the company can rely on to handle her job responsibilities,” said Jim Ocheltree, President, Elliott Bros Truck Line, Inc. “Kathy is a true safety professional and greatly deserves being recognized as the 2009 IMTA Safety Professional of the Year.”

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IMTA Winners Spotlight 200 9 I MTA O u t st a n d i n g Pr o f e s s i o n a l D r i v er s

Years as a Miles Driven

Professional Driver Johnny Thomas Barr-Nunn Transportation 15 Years 1.4 million

Seated: Johnny Thomas–Barr-Nunn Transportation, John Murray–BTI Special Commodities, Inc., Robert Pendgraft– BTI Special Commodities, Inc., George Thomason–Decker Truck Line, Inc., Jimmy McKinney–Solar Transport Company, Douglas Breese–Wal-Mart Transportation, LLC Standing: Robert Cravens–Wal-Mart Transportation, LLC, Tony McElhinney–Wal-Mart Transportation,LLC, Mike Rouse–Wal-Mart Transportation, LLC, Bradley Conn–Warren Transport, Inc., James Turman–West Side Transport.

Not Pictured: Jon Thul–G.L.E. Trucking, Inc.

2009 IMTA Professional Driver of the Year A standing ovation was given when Jimmy McKinney with Solar Transport was named the 2009 IMTA Professional Driver of the Year.

Jimmy has traveled over 3.5 million miles as a truck driver for over 38 years.

“Jim is a very safe and conscientious driver and will be an excellent representative for the Iowa Motor Truck Association as the Driver of the Year,” said Bridget Nixon, Safety Director, Solar Transport.

Jimmy McKinney Solar Transport

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John Murray BTI Special Commodities, Inc. 27 Years

2.74 million

Robert Pendgraft BTI Special Commodities, Inc. 43 Years

4.3 million

George Thomason Decker Truck Line, Inc

42 Years

4.5 million

Jon Thul G.L.E. Trucking, Inc.

10 Years

860,000

Jimmy McKinney Solar Transport Company

38 Years

3.5 million

Douglas Breese Wal-Mart Transportation, LLC 21 Years

2.3 million

Robert Cravens Wal-Mart Transportation, LLC 36 Years

3.5 million

Tony McElhinney Wal-Mart Transportation,LLC 27 Years

2.7 million

Mike Rouse Wal-Mart Transportation, LLC 27 Years

2.74 million

Bradley Conn Warren Transport, Inc.

20 Years

2 million

James Turman West Side Transport

24 Years

2.4 million

IMTA Winners Spotlight A special thanks to Midwest Wheel Companies for sponsoring the Maintenance Awards. This program is designed to recognize the motor carriers that have made a commitment to their fleet maintenance efforts.

2009 Midwest Wheel Companies Fleet Maintenance - Individual Seated: James Foster-Barr-Nunn Transportation, Inc., Greg Isenhour-CRST, Inc., Jeremiah Rossmanith-Decker Truck Line, Inc., John Brady-Ruan Transportation Management Systems Standing: Jim Koester, Midwest Wheel Companies, Robert Lee-Wal-Mart Transportation LLC, Jim Floyd-West Side Transport, Inc., Pete Romig, Midwest Wheel Companies Not Pictured: Jamie Eifler-Peterson Contractors

Jaime Eifler with Peterson Contractors was named the overall 2009 Midwest Wheel Companies Fleet Maintenance Individual of the Year.

2009 Midwest Wheel Companies Fleet Maintenance Company Seated: Joe Nixon, Barr-Nunn Transportation, Inc., Cameron Holzer, CRST, Inc., Jeff Gallogly , Decker Truck Line, Inc., Adrian Dickey, Harold Dickey Transport, Inc., Mark Olson, Olson Explosives Standing: Jim Koester, Midwest Wheel Companies, John Westerholm, Ruan Transportation Management Systems, Travis Hingtgen, Standard Forwarding Company, Inc., Dennis Cook, West Side Transport, Pete Romig, Midwest Wheel Companies Not Pictured: G.L.E. Trucking, Inc.

200 9 I MTA D i sp a t c he r A w a r d Wi n n e r s Leeia Oney received the 2009 IMTA Dispatcher of the Year Award. Leeia had the most experience as a dispatcher in the group of award winners with 28 years. She is responsible for 20 drivers at Ruan Transportation Management Systems. Ruan Transportation Management Systems is headquartered in Des Moines Iowa and has been a longstanding advocate for quality dispatching services.

Seated: Bill Mertens - Barr-Nunn Transportation, Inc., Michael Herzberger - CRST Van Expedited, Inc., Zach Mulder - Jacobson Transportation Company, Inc., Jeff Rickabaugh Jacobson Transportation Company, Inc. Standing: Leeia Oney - Ruan Transportation Management Systems, Mark Jacobs - Warren Transport, Inc., Matt Maybanks - West Side Transport, Inc.

Leeia Oney - Ruan Transportation Management Systems

A special thanks to the Iowa Council of Safety Management for sponsoring this awards program.

The Dispatcher Recognition program was started because it was felt that dispatchers play such an important roll that they needed recognition.

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IMTA Chairman Spotlight I ntro du c in g I MTA C h a irma n : B ob K o h l wes The Iowa Motor Truck Association welcomes Bob Kohlwes as its Chairman of the Board for 2010. Kohlwes has been an IMTA member since the early 1970’s. He is the Vice Chairman of BTI Special Commodities trucking company located in Des Moines, a flatbed organization that services all contiguous 48 states.

A native of Iowa, Kohlwes received a B. A. degree from Drake University and a MBA degree from the same institution. He started his trucking career with Ruan Transportation in 1969 and moved onto other trucking operations and ended up at BTI Special Commodities where he eventually became a part owner in the company.

Mark Zieman transfering the gavel to Bob Kohlwes at the Chairman’s Banquet.

Kohlwes’ commitment to trucking industry shows through his lengthy career as well as long standing involvement with the IMTA. “I know it’s what people always say – but I have found that over the years, the more you put into the association, the more you get out of it,” said Kohlwes. “This is particularly true for the upcoming year as the economy starts to recover and our industry picks up again.”

As Chairman of the Board for IMTA Kohlwes is looking forward to the unique challenges that are present in the industry today. Obviously, the economy is a top priority.

Kohlwes is focused on that issue because its one that is at the top everyone’s mind.

He uses a number of factors to serve as a barometer for the state of the industry, including: trade availability, number of trucks laying over, how fast customers are paying us back, number trucks at the rest stops, etc.

“Our key function as an organization is our legislative services.”

Bob Kohlwes participated on a leadership panel for an IMTA Leadership Class Session.

Bob Kohlwes has been involved over the years with presenting Iowa Motor Carrier Foundation checks to Scholorship winners. Here he presents to college student Brook Roberts.

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Chairman Spotlight

2009 Management Conference Committee (Front Row L to R) Marc Hyland – Majestic Truck Services, Murry Fitzer – Florilli Transportation, Mike Riggan – TanTara Transportation Corp., Bob Kohlwes – BTI Special Commodities, Mark Zieman – Cherry Valley Enterprises (Back Row L to R) Tim Kovacevich – Bridgestone Bandag, Clark Bannister – Central Trailer Service, Pete Romig – Midwest Wheel Companies, Doc Wilson – Cummins Central Power, Dan Stevens – Farner Bocken Co., George Crouse – Crouse Transportation Services.

IMTA Officers – George Crouse – Crouse Transportation Services, Jeff Wangsness – JMT Trucking Company, Mike Riggan – TanTara Transportation Corp., Brenda Neville – IMTA, Bob Kohlwes – BTI Special Commodities, Mark Zieman – Cherry Valley Enterprises.

Additionally, there are a number of regulation changes and legislation issues that the IMTA must stay on top of in order to keeps its members abreast of any changes and issues coming down the pike.

“Our key function as an organization is our legislative services,” said Kohlwes. “Our presence up on the hill is really the core of our services and a place where we can be a part of the solution to our own problems.”

Bob Kohlwes and his family at the 2009 IMTA Management Conference.

Through all of these services, Kohlwes hopes to inspire more involvement out of its members. “We’d like each member to put forth as much as they possibly can, because it comes back to pay them many times over.”

“Our presence up on the hill is really the core of our services and a place where we can be a part of the solution to our own problems.”

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Legal Update Rick Howe serves as managing partner of Howe, Cunningham, Lowe & Kelso law firm in Des Moines. Before entering private practice in 1978 he served as Executive Director of the Iowa Reciprocity Board which was the commercial vehicle licensing agency in Iowa. He was subsequently appointed by the Governor to the Iowa Transportation Regulation Board where he served as chairman. He has written for trucking publications and has served as an expert witness in litigation involving transportation issues.

The performance data on a driver will follow the individual from company to company.

Rick Howe Howe, Cunningham, Lowe & Kelso, PLC

The Problem Driver

When a trucking company has a problem driver, enforcement officers have an easy answer. The company is responsible for the driver’s actions and should have done a better job of screening the individual in the hiring process. This is easier said than done.

Section 391.23 of the Federal Motor Carrier Safety Regulations require: “(2) An investigation of the driver’s safety performance history with Department of Transportation regulated employers during the preceding three years.”

Frequently prior employers give cursory responses that fail to provide the information needed by the carrier to evaluate the driver. After several attempts to obtain the information the carrier is forced to document his good faith efforts and proceed with the driver qualification process.

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For many years the industry has requested that the Department of Transportation release driver safety information that has been available to federal and state law enforcement personnel. In October 2009 the Federal Motor Carrier Safety Administration finally responded by announcing the new Driver Pre-Employment Screening Program which will allow trucking companies to electronically access driver inspection and crash records as a part of the hiring process. Access to the records will be subject to obtaining consent from the driver applicant but his or her refusal would indicate that there may well be a problem.

The performance data on a driver will follow the individual from company to company and will cover the previous 3 years. The initial announcement of the program stated that it was expected to begin in December 2009. NIC Technologies of Olathe, Kansas has been selected to administrator the program.

I spoke to the Director of Marketing for the company in early December and was told that it may be early January before all arrangements are completed.

NIC anticipates an annual carrier subscription fee not to exceed $100.

There will also be a transaction charge of $10 for each driver record.

The American Trucking Associations (ATA) has worked diligently through its Safety Policy Committee and participation in the CSA 2010 working group to gain access to the driver performance data. ATA is now encouraging the Federal Motor Carrier Safety Administration to make data available for drug and alcohol test results. The current program for obtaining driver performance information and information on previous test results from former employers makes it very difficult for the industry to fulfill its responsibility to identify problem drivers - the new program was long overdue.

An October 19, 2009 press release from NIC included the following:

“The new service is designed to disseminate commercial drivers’ safety performance history as part of the pre-employment screening process.

The system will assist the motor carrier industry in assessing individual operators’ crash and serious safety violation inspection history as a preemployment condition. Drivers will also be able to obtain their individual history from the service.

The new system should launch in December 2009.”

Legislative Update Dave Scott, CAE serves as the Iowa Motor Truck Association’s lobbyist. With close to 30 years experience at the state house Dave is a valuable asset to IMTA’s Government Relations and Advocacy efforts.

Proposal is Dumb on Arrival

Culver calls for robbing the road fund and growing DOT Governor Culver has proposed robbing $50 million from road fund to pay for state troopers and at the same time calls for increasing staff size at the DOT. As was reported in the Cedar Rapids Gazette a couple of weeks ago, these proposals may not be “dead on arrival,” but they certainly are “dumb on arrival.”

Forget whether it’s good or bad policy, only a politician can pay for something out of one pocket one day and then pay the same

The Governor says there’s precedence for robbing the road fund.

Dave Scott IMTA Lobbyist

amount from another pocket the next day and proclaim a savings. That, in my book, is not savings.

I guess it’s true. When you rob Peter to pay Paul, Peter may be upset, but you can always count on the support of Paul.

So, let’s review.

Two years ago the Governor signed into law the TIME 21 legislation that significantly increased registration fees on all vehicles, doubled fees on truck trailers and raised pickup registrations as much as five or six times. Why? Because a legislative study correctly pointed out Iowa’s roads and bridges were deteriorating at a rate greater than repairs could be made.

The study identified $200 million dollars in “critical needs” and a $28 billion shortfall over the next decade.

A national study found only seven states have primary roads in worse condition than Iowa.

The same study found only 18 states have rural interstates in worse condition than Iowa.

Only three states have urban interstates in worse condition than Iowa.

And, yet, another study in 2008 revealed Iowa has the fourth highest percentage of bridges of structurally deficient bridges So, now that the TIME 21 legislation has been on the books for 18 months and Iowa’s vehicle/trailer owners have anteed up new revenue. Just over $50 million in new revenue to be precise.

What the Governor giveth, the Governor taketh away! Governor Culver’s proposal would scoop all that new revenue to pay for general fund salaries. At the same time, he has tried to pit this as a battle of roads against public safety. We in the trucking industry know how important safe roads are to all of us. With one of the worse winters behind us and now looking at an equally severe one, truckers know how important snow removal is to public safety.

Truckers know how important highway shoulders are and how they can impact the motoring public. Or safe bridges. Or safe lane markings. And the list goes on.

We believe the proper maintenance and construction of our streets and roads is, indeed, a safety factor that should not be casually dismissed as something we can do when we have the time or money.

Of course, the state troopers play a vital role in the safety on our state roads, but it is a game of three-card-Monte to ask the public to guess who provides the most safety – safe roads or state troopers.

It’s not just the road lobby calling these proposals ill conceived. The Cedar Rapids Gazette in an editorial on December 11, 2009 said, “Shifting the cost of a state agency into a road fund that’s already growing too slowly to meet the state’s transportation needs is shortsighted and a bad precedent.”

The Des Moines Register took similar opposition to the Governor’s proposal in an editorial on December 20, saying “Don’t raid road fund to pay for troopers. Take the long view on setting state’s priorities… and robbing the road fund can’t be justified by the additional (one time) infrastructure dollars Iowa is receiving from federal stimulus legislation.”

The Governor says there’s precedence for robbing the road fund and the attorney general has told him it would be legal for him to do so again.

Yes, paying for the troopers out of the road fund was done for several years back in the mid 1980’s to mid 1990’s. Governor

Branstad signed the legislation both beginning the practice and ending the practice. As Governor Branstad said recently, his office learned from their mistake and corrected it.

I am reminded of advice I was given one time by a police officer; “Son, just because you can do something, doesn’t mean you should.”

Governor, the same advice seems applicable here. Just because you can do something, doesn’t mean you should.

Yes, there may indeed be precedence, but with all due respect, we would offer there is precedence for desperate people to rob banks, but that doesn’t make it the right thing to do.

Part of the Governor’s proposal to “save” money calls for slashing by 44 percent the DOT’s use of engineering companies contracted to do work with the Department.

Industry estimates are the DOT would have to hire 60-70 new employees to pick up the work currently being done by private practice. These are employees who will be on the payroll this year. Next Year. And the year after that. In fact, they will be on the payroll for years after they have retired as the state continues to pay into their retirement fund.

It is unbelievable the Governor would be calling for one of the largest increases in state employees in years, while at the same time he is calling for layoffs and furloughs.

The Governor’s proposal to order the DOT to staff-up for peak workloads is the equivalent of suggesting a department store keep Christmas help on the payroll year-round because they will eventually need the help.

Industry estimates are that hiring 60-70 people to do peak workloads will not save the DOT money, but will actually cost them millions more in salaries.

David Yepsen, former political reporter for the Des Moines Register, said in an article in April 2002 when Governor Vilsack was trying to raid the road fund, “Taking money from the road use tax fund to bolster general fund spending is one of the oldest budget tricks in the Statehouse playbook.”

Everyone knows the Governor played football in his college days. Well, this play has been run before and even those in the cheap seats can see this is a Hail Mary play that’s bound for failure. Even if the Governor’s desperate play wins some approval in the short run, we think upon further review the play will be called dead – dead on arrival…and dumb on arrival.

Winter 2009

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Carrier Spotlight

Jerico Services, Inc.

explosive hauling company is steeped in a tradition of hard work, committed workers, and safe conditions.

Today, Jerico Services, Inc., out of Indianola, has 18 employees and services six states: IA, KS, MN, MO, NE, and SD. The company’s employees bring a wealth of history to the road each day – with a combined work experience of more than two centuries.

“Our employees are our top priority,” said Grunwald, vice president and general manager at Jerico Services, Inc. “We have a group of people who are specialists in this particular field and we make sure our employees are happy.

They are the secret to our longevity, awards, and success.”

“I first met Jerry in 1977,” recalls Grunwald. “We worked together from the late 70’s until the mid 80’s. It wasn’t until later that I became directly involved with the company as a stake holder.”

Jerico Services, Inc. stared out as a three man operation in 1968.

Lowell has regularly attended the awards program at the management conference

It seems incongruous that a guy with a disposition as easy going as Lowell Grunwald should work in explosive hauling and trucking. But take one look at Jerico Services, Inc.’s safety accolades and history – you’ll see that this five decade old chemical and

Jerico Services, Inc. started out as a three man operation in 1968. The company initially did business as Laverty Supply, owned by Charles Laverty. At the time the firm specialized in chloride and chemical supply and distribution. Within six years of its founding the company became Laverty Explosives and Supply when they added explosives to its list of service lines.

Lowell Grunwald has taken advantage of many education opportunities offered at the IMTA management conference.

In 1973, Laverty Explosives and Supply hired Jerry Ripperger, who became manager of the explosive sales department. Also during this time, Ripperger started up a working business relationship with a supply salesman by the name of Lowell Grunwald.

During the 80’s “Rich” Wood and Ripperger purchased the company from Laverty. Their next step was acquiring another chemical distribution firm in Nebraska, named Husker Chem Sales, which is still a part of the organization today. Also during this time the company expanded its outreach into coal mine work and oil well services.

Throughout the end of the 1980’s the company solidified its services and focused its efforts exclusively on explosives and chemicals.

The 90’s ushered in an era of change for the firm. Wood and Ripperger changed the name of the company to Jerico Services, Inc. The same year they started looking for new talent to take company’s reins. It didn’t take long for the two to decide that Grunwald was the man for the position.

“I was working in Nashville at the time,” said Grunwald. “I had a great working

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Carrier Spotlight Today, Jerico Services, Inc. has 18 full-time employees

The National Private Truck Council has awarded Jerico Services, Inc. its regional safety award 15 years out of the last 16 years.

relationship with those two and in the end it just made financial and personal sense.”

Grunwald came in to replace Wood who retired shortly after in 1993.

Ripperger stayed with the firm until he retired in 2000.

Under Grunwald’s stewardship the firm has more than doubled in size and earned a cache of industry accolades.

Lifeliner

“We try to take great care of these people,” said Grunwald. “That means not only providing a safe and enjoyable working environment, but also we provide health insurance for our workers and their family, dental and eye care, shortterm and longterm disability, defined benefits, 401(k) and a profit sharing plan.”

Over the years Jerico Services, Inc. has come to rely on IMTA.

Today, Jerico Services, Inc. has 18 fulltime employees with 3 stake holders: Grunwald, Steve Long, and John Marshall. Of the 18 employees, eight have been with the company longer

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than 15 years and half of those have been there more than 18 years.

Winter 2009

Jerico Services Inc.’s commitment to all around employee satisfaction seems to be paying off in industry awards.

The National Private Truck Council

has awarded the company its regional safety award 15 years out of the last 16.

Additionally, the IMTA has awarded the firm its regional safety award the past 13 years.

“In a business like ours, with such stringent regulations, safety and quality of work is paramount to our day-today operations. Our people know that and it’s nice to be recognized for our commitment.”

Jerico Services’s Inc. has garnered awards from the IMTA for more than a decade, but the company’s affiliation with the association goes back to the late 80’s when Wood first joined the association.

Over the years, the company has come to rely on IMTA for different services.

Carrier Spotlight

Lowell Grunwald shown here accepting a Great West Casualty Fleet Safety Award.

“I think today the IMTA is doing a great job taking care of its smaller members,” says Grunwald.

“I think today the IMTA is doing a great job of taking care of its smaller members. I think big members are vital to the industry, but smaller firms, like us, also help shape the vision and path ahead.”

Grunwald points specifically to the representation on the hill and ongoing

Along with business opportunities, the management conference offers time to socialize and network. Lowell takes advantage of the opportunity to play golf with industry colleagues.

education about what rules and regulations are vital resources for him.

“Through a network of resources – The NPTC (National Private Truck Council), the American Truck Association and the IMTA we get both a national and local vantage point for our business and its

future. At the end of the day, I think the value for the dollar is tremendous; not only for us, but as a general way to help improve the vitality of the trucking industry.”

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Safety Insight Don Egli, Director of Safety and Security of the Iowa Motor Truck Association. Don has been with IMTA since February 2005, and spends much of his time working on compliance and regulatory issues with our members, FMCSA, Iowa Motor Vehicle Enforcement, and other regulatory agencies.

Hours of Service, Where are we Heading?

Don Egli, CSS IMTA Director, Safety & Security

“CSA 2010 will place a significant amount of importance on driver related violations.”

For carriers and safety personnel who have tried to keep up with regulatory issues, hours of service continues to be an interesting topic. Almost every time you pick up an industry magazine or newspaper you see some type of article dealing with hours of service. A recent edition of Transport Topics, alone, included three articles dealing with the subject.

As most carriers know, the current hours of service regulations have been under constant opposition by the groups Public Citizen and the Teamsters Union since their revision in 2005. Lawsuits have been filed and decided upon, then refiled again. In October, FMCSA and a coalition of advocacy groups reached a settlement that put on hold a third lawsuit, seeking to overturn the current rule. A part of the agreement included FMCSA agreeing to send a new HOS proposal to the White House not later than July 2010. This agreement does not mean that the lawsuit has been dropped, just “put on hold” until the groups in opposition have a chance to review the proposed revisions and give their approval.

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An earlier proposal, under the Bush Administration, had proposed that carriers that had failed at least two compliance reviews within twenty-four months would be mandated to utilize electronic on-board recorders. FMCSA has now stated that their newly proposed HOS rule would include requiring “a much larger population of carriers” to use electronic on-board recorders to monitor driver hours-of-service than it had earlier envisioned. What that means is not entirely evident at this point, but it is obvious that their intention is to require more, if not all, carriers to utilize electronic on-board recorders.

So where are we as an industry heading?

Obviously there will be tighter controls in place concerning hours of service. Is that a bad thing? Maybe yes. Maybe no.

• Yes, in the fact that carriers would have to make a significant financial investment for the electronic devices and will also have “big brother” on board to record the precise activities of drivers and truck movement.

• No, in that it would level the playing field for carriers. The carriers who are now running with a total disregard for the hours of service regulations would no longer get away with running illegally. Also, carriers would be much more capable of requiring drivers to run in compliance with hours of service regulations than with paper logs.

CSA 2010 will place a significant amount of importance on driver related violations which are deemed as a contributing factor to vehicle crashes. I believe that this is one of the processes that FMCSA has determined they will utilize in their mission to continue to reduce truck related crashes.

We cannot know for sure what the future holds in terms of hours of service regulations, but we can be sure that the next twelve months will be interesting, to say the least. As an association, we will continue to monitor this situation and communicate with you in a timely manner as we learn more about this issue and ongoing changes.

It will be without doubt, a continued controversy as all the interested parties try to reach a viable solution. Over the course of the last several months the only common thread we can find among our members is that everyone seems to believe that something needs to be done, unfortunately, nobody can seem to agree on exactly what needs to be done. Stay tuned.

To learn more about Hours of Service regulations or to stay abreast of FMCSA proposals visit the FMCSA website at www.fmcsa.dot.gov.

Business Environment Jim is a partner in the Iowa-based business advisory and private equity/venture capital firm, Prairie Oak Capital, LLC and is an accounting professor at Iowa State University in Ames, Iowa.

Jim is currently on a half-time appointment at ISU, while assisting Iowa businesses through Prairie Oak Capital. Jim’s primary assignments include graduate courses in financial statement analysis and business valuation. Jim has an active university research portfolio that primarily focuses on public policy issues as pertain to the financial markets.

Economic Milepost

Anyone who has heard me speak in a public forum may recall that I am a student of history. As I write this economic update on our economy I am reminded that this date, December 7, 2009, commemorates the 68th Anniversary of the attack on Pearl Harbor and the US entry into World

Jim Kurtenbach Prairie Oak Capital, LLC

“My expectation for 2010 is that we will continue to see slow stable growth.”

War II. The importance of this event is that it serves as a reminder of the sacrifices that members of our military, and their families, made on this date in 1941, but also the hardships that were subsequently faced by our entire world as we were gripped in war – although the times today are challenging, I doubt any of us would say that the challenges we face are as uncertain or as frightening as those challenges faced in 1941.

Although my crystal ball is probably no better than your favorite predictor of the future for our economy, I will attempt to read the proverbial tea leaves as reported in our current indices of economic activity and make an educated guess about the US economy in 2010. On the positive side, we are starting to see an increase in home sales, some strengthening in the October construction reports, stronger manufacturing reports in November.

Overall, the US Department of Labor reported nonfarm productivity grew at 8.1%.

The downside to these items is that home prices are still falling, unemployment remains at 10% nationwide and near 10% in Iowa, and the Institute for Supply Management reported a decrease in service sector activity for November.

However, trying to find more good news, the Obama Administration is thinking about returning $200 billion of funds they do not believe will be needed to bail out failed banks and banks are repaying debt to extricate themselves from the web of government regulations.

In my ever humble opinion, the Administrations in both our Nation’s capitol and Des Moines should resist the temptation to increase taxes, find ways to reduce government spending, and leave more money in the economy to flow from consumers to our producers.

In my ever humble opinion, the Administrations in both our Nation’s capitol and Des Moines should resist the temptation to increase taxes, find ways to reduce government spending, and leave more money in the economy to flow from consumers to our producers.

Senator Harkin and Congressman Braley are currently pushing the notion of creating a tax on security transfers; however, members of Congress need to remember that the power to tax is the power to destroy. What we need at this time are citizens who will invest their own capital and a government that will permit investors to earn a return on risky investments. My expectation for 2010 is that we will continue to see slow stable growth, if the oil prices remain reasonable and government permits the markets to function.

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FE ATU R E

Getting Out what you Put In

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By: Travis Scott Contributing Writer

Lifeliner

Winter 2009

Being an IMTA Member Getting Out What You Put In

We are Linked In. We have facebook friends. There’s myspace. There’s bebo. There’s any number of virtual channels that tie us all together in the 21st century. But do all these new connections really do us any good?

They said the Internet was going to change everything… and it seems they were only half right. Although we have instant access to almost anyone at anytime – that’s what changed – what hasn’t changed is who we are connecting to – like minded people.

The association world in the 21st century is different world than it was 75 years ago when the Motor Truck Association first started, but its goals, its services and its members have continued to grow with the changing world.

In general, associations make a difference across the country. They bring tangible economic benefits to our communities and contribute to American workers’ competitiveness, safety, and quality of life. Associations assume a quiet leadership role in the economy, in the nonprofit community, and in American civic that is second to none in its outreach and services.

The American Society of Assocation Executives reported that associations, nationwide, bring in more than $33 billion revenue, with 50.6 billion in assets. The majority of that money is funneled into improving the associations services – with nearly 20 percent of associations operating budgets devoted to education, programs for members and more than 60 percent of associations plan to spend more on education.

A truism across the board regarding associations is that members get out of it what they put into it. And with the ATA representing more than 37,000 members alone, including every type of motor carrier in the United States, members truly have the man power to improve the industry.

IMTA’s members have a number of different ways they have come to be involved; however, each member is involved for a common good.

Bob Kohlwes BTI Special Commodities, Inc.

“I joined IMTA because I looked at what their charter said they wanted to do and that was to help legislative efforts and I still see that as our organization’s core,” said Bob Kohlwes, IMTA Chairman. “That is a core service that only the association can provide its members.”

Where as Donna Weinrich-Lucht, of Weinrich Truck Lines, Inc, said, “I’m involved with the IMTA because, simply, as a group we can do much more for our industry.”

Dave Van Wyk, president of Van Wyk, Inc. notes that his involvement stems from a family history, “Initially, I got involved as a second generation; I was transitioned into my involvement with IMTA because I was expected to. Now I am involved because it allows me to be informed on legislative issues that affect our industry. In short, now I am involved because I want to be.”

“In many cases, belonging to the IMTA gives us a ‘seat at the table’ regarding legislative issues that impact our companies directly. Our association’s relationship with some law makers have even allowed us to help draft certain laws and regulations,” Donna Weinrich-Lucht said Dave Van Weinrich Truck Lines Wyk.

A seat at the Table

The IMTA serves as the voice of the trucking industry – both locally and nationally. Our presence on ‘the hill’ allows us to fight unfair taxes, eliminate burdensome regulation as well as foster a healthy business environment.

Dave Van Wyk Van Wyk Inc.

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Being an IMTA Member

Steve Sukup Sukup Manufacturing

Steve Sukup, of Sukup Manufacturing, notes that the greatest benefit of belonging is that our regulation and business interest positions are conveyed to our politicians

Each legislative session brings on an onslaught of issues that have unique challenges.

For instance, the upcoming sessions already has a number of pressing topics, including:

Tax and economic issues that affect each company’s bottom line

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1

Promoting the safe and efficient movement of hazardous materials

Effectively managing safety, alertness and performance

4 6

Controlling fuel costs National security Civil justice reform

Promoting sound environmental policies that work for the environment as well as business

3 5 7

Jim Ocheltree, president at Elliott Bros.

Truck Line, notes the importance of staying on top of each of these issues.

“If you are going to be a part of this industry, you need to support your assocaiton, so we have people looking out for our best interest,” he said.

More Members Equals More Power

With each passing year there are new regulations and new financial tribulations that affect the trucking industry. More active membership and adding new members will only bolster the effectiveness of the organization.

While the legislative presence is the core of IMTA’s services, there is also a litany of other capabilities that are unique to the association. For instance, members have direct access to regulatory policy experts, economists, statisticians, accountants, environmental experts, safety and maintenance engineers, and communications specialists to ask questions, seek advice, or gather insights or facts.

Mike Riggan, president at TanTara Transportation Corp., notes that these services are only as powerful as the members who utilize Michael Riggan them. “We TanTara Transportation Corp. need the little guys involved as well as the big. Involvement from new members as well as more involvement from current members is what will make the association as strong as possible.”

“It’s vital to trucking in general to be around other carriers,” said Jim Ochletree, president Elliott Bros. Truck Line. “A lot of times what happens in casual networking is very important to the day-to-day business we conduct.”

The association expertise runs deep. Members can call anytime to ask questions and get the answers regarding a number of topics, such as:

Environmental regulations Labor issues Safety standards and regulations Hazardous materials transport issues Claims and loss prevention Taxes and finances Public relations ATRI – research data collection Economic and statistical data

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Being an IMTA Member IMTA’s Chairman agrees with Riggan and notes that in these economic tough times, it important to stay involved. “We have to be flexible and involved,” said Kohlwes. “We’ve had some tough times but we will get through in fine fashion if each of our members put forth the effort and has the right attitude.”

The Road Ahead

As we head into 2010, members across the board are hoping the economic challenges are behind us and we can return to focusing on the business at hand. Fortunately, one fact about the industry will never change, no matter how many networking Web sites, or challenges present themselves – if you bought it, a truck brought it. While the internet has changed the way we sell and buy most everything – materials still have reach their consumers.

values incumbent with members.

“My involvement with the IMTA has changed my life personally through all the great people I’ve met in my life professionally.”

“IMTA is a great advocate for sensible regulations, effective legislative efforts and a great peer group,” said Sukup.

“I think the next five years will be a different time for the association,” said Kohlwes. “While the legislative efforts are going to continue to go fullforward we have a number of outreach initiatives that are going to change the way we communicate and work together.”

“It’s a poor attitude to work in trucking and let other companies foot the bill for all of the services and benefits the IMTA brings to the industry,” said Ocheltree.

Kohlwes hopes that potential new members understand the entire

“We have to be flexible and involved.

We’ve had some tough times but we will get through in fine fashion if each of our members put forth the effort and has the right attitude,” says IMTA Chairman Bob Kohlwes.

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Labor Department Barbara Tapscott has been an employment attorney with Iowa Workforce Development since June of 2004. Barb was a private practice employment attorney for more than a dozen years, working for law firms based in New York, Washington, D.C., Philadelphia and West Des Moines. She has bachelor and master’s degrees from Iowa State University in journalism and mass communications and spent about a dozen years working for newspapers in Waterloo, Ames, Des Moines and Kansas City. She switched careers after graduating from the George Washington University School of Law in 1992.

Independent Contractor or Employee: A Look at Trucking Cases

Trucks drivers – are they employees or independent contractors?

More specifically, what about truck “owneroperators?” Are they employees or independent Barbara Tapscott contractors?

Iowa Workforce And what facts Development Attorney do you consider when making the correct classification?

The issue of the classification or “misclassification” of truck drivers and “owner-operators” impacts an employer’s obligations under Iowa’s unemployment and workers’ compensation laws. It can also affect an employer’s withholding obligations for state and federal taxes and application of other employment and labor laws.

A fall 2009 Lifeliner article focused on misclassification overall. This article discusses insightful unemployment and workers’ compensation decisions involving trucking occupations.

The Iowa Administrative Code Section 871-23.19(1) identifies several factors critical to determining whether an employer/employee relationship exists for purposes of unemployment obligations: (1) does the employer have the right to direct and control the performance of the work or service; (2) does the

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employer have the right to terminate the relationship without penalty; (3) does the employer furnish the tools, equipment, and place of work; and (4) is the worker paid fixed wages calculated on an hourly or weekly basis.

Iowa’s unemployment regulations indicate that a worker is more likely to be an independent contractor if the following exist: (1) the worker is subject to direction and control of another merely as a result of the work, not as to the means and method for accomplishing the results; (2) discharge or termination will constitute a breach of contract; (3) the work involves performance of a specific job or piecework at a fixed price; (4) proof that the worker is involved in a distinct trade, occupation, business or professional service that is offered to the public who will reap the benefit of that worker’s training and experience; and (5) proof that the worker has the right to employ assistants with the exclusive right to supervise their activity and completely delegate their work.

Unemployment Benefit Cases

Two recent unemployment decisions by Administrative Law Judges involving truck drivers show analysis of those factors.

In Barber v. Ozark Automotive, decided on January 26, 2009, the Judge found that a truck driver was an employee and was entitled to unemployment insurance benefits. The “employee” evidence cited in the decision included: (1) the company owned, maintained and fueled the truck the worker used; (2) the company contracted with customers to perform hauling services at a set price, with the driver paid a percentage of the rate, with no

opportunity for profit or loss, which is customary in the independent contractor setting; (3) the driver worked on a regular basis and was usually paid every Friday; (4) the company advised the driver what jobs to do for customers the company lined up; (5) the driver was not free to use the company truck for independent jobs and was not allowed to hire other drivers to take his place; and (6) the company told the driver what to do when he had an accident and then fired him.

The Judge found inadequate the company’s “independent contractor” evidence that: (1) the driver had signed a form stating he was an independent contractor; and (2) that he could accept or reject work assignments.

Similarly, in an unemployment decision released on October 13, 2009, the Administrative Law Judge found in RMK Enterprises v. Chapman, that an alleged dump truck “owner-operator” was an employee entitled to unemployment benefits. The “employee” evidence cited by the Judge included: (1) the driver had a continuous, ongoing relationship with the company from 2005 through 2008; (2) the company owned the truck and could not produce a “lease” agreement she purportedly signed; (3) the driver was required to drive the truck herself and could not hire replacement drivers; (4) the driver performed services under the company name; (5) the company was responsible for licensing and maintaining the truck, providing the fuel and paid her expenses;

Labor Department (6) the driver’s work was performed under the company’s name and the company handled all billings and collections; and (7) the company told the driver where to park the truck and how to care for it.

The Judge found that even if the company could provide a signed owneroperator lease agreement, an unsigned version placed the burden of finding jobs on the company. The lease agreement also made the company responsible for paying all fuel, repair and tax expenses, and for billing customers. It also stated that the driver would be in default of the agreement if “her employment was terminated.” The Judge found insufficient the company’s independent contractor evidence that the driver had flexibility in determining how much to drive and was paid based on what the truck earned per job.

Workers’ Compensation “Owner-Operator” Cases

The factual evidence cited in unemployment cases for determining whether a truck driver or “owneroperator” is an independent contractor or an employee is similarly important in workers’ compensation cases. Of critical note is that Iowa’s workers’ compensation law has an exemption found at Iowa Code Section 85.61(11.) (c.) that truck “owner-operators” shall not be deemed “workers” or “employees,” so long as all of the following are met: • Owner-operator is responsible for maintenance of vehicle; and • Owner-operator bears principal burden of vehicle’s operating costs, including fuel, repairs, supplies, collision insurance, and personal use expenses for operator while on the road; and • Owner-operator is responsible for supplying the necessary personnel to operate the vehicle, and personnel are considered the owner-operator’s employees; and • Owner-operator’s compensation is based on factors related to work performed, including percentage of any schedule or rates or lawfully published

tariff, and not on basis of hours or time expended; and • Owner-operator determines the details and means of performing the services, in conformance with regulatory requirements, operating procedures of the carrier, and specifications of the shipper; and • Owner-operator enters into a contract which specifies the relationship to be that of an independent contractor and not that of an employee.

A company struggling with this analysis can learn from reviewing the following workers’ compensation decisions. In Albers v. Gentry, Pyle Truck Lines, Inc., the Iowa Court of Appeals on March 29, 2006, affirmed the Workers’ Compensation Commissioner’s decision that a truck driver was not an independent contractor under the “owner-operator” exemption because not all six factors were “substantially present.” The Commissioner affirmed a Deputy Commissioner’s July 2003 decision that the driver was not an independent contractor “owneroperator,” after observing that: (1) the driver did not own the truck or trailer he was driving; (2) the company obtained all licenses for all tractors and trailers the driver operated; (3) the driver did not pay for the vehicles’ registration, license, title, or any other fees related to operating the company vehicles; (4) the driver was not responsible for vehicle maintenance; (5) the driver was not required to supply personnel to operator the vehicles; (6) the company paid for fuel for the vehicles by giving the driver a gas card, and the driver was advanced money for lumper fees and tolls; (7) the driver did not determine his own hours or where he was going, rather was told where to go and when; (8) the driver was instructed to sign a company list of regulations; (9) the driver was given an employment application and other employmentrelated documents to fill out;

(10) the company obtained the loads for the driver and arranged delivery dates and times; (11) the driver was required to provide his location and obtain instructions from the company; and (12) there was no independent contractor agreement between the driver and the company.

Similarly insightful is the Wheeler v. BTI Special Commodities decision issued by a Deputy Workers’ Compensation Commissioner in August 2002. The Deputy Commissioner found that a truck driver was not entitled to workers’ compensation benefits because each of the requirements of the “owner-operator” independent contractor exemption were met. The Deputy Commissioner found: (1) the driver was responsible for maintenance of the vehicle he operated; (2) the driver bore the principal burden of operating costs; (3) the driver was responsible for supplying the necessary personnel to operate the vehicle and they were considered his employees; (4) the driver’s compensation was based upon factors related to the work performed, and not on the basis of hours or time expended; (5) after compliance with regulatory and shipper regulations, the driver was free to select his own route, vehicle and how he operated the vehicle; and (6) the driver worked under an independent contractor agreement.

Companies with questions about the classification of their drivers may check with the Misclassification Unit at Iowa Workforce Development at the link below: http://www.iowaworkforce.org/ misclassification/.

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The FMCSA is rolling out its new Comprehensive Safety Analysis (CSA) 2010, a major initiative intended to improve safety and reduce crashes.

Under the new system, 24 months of all safety-based inspection violations will be used to rank and target carriers for new FMCSA enforcement interventions.

Now more than ever, you need to make sure your company is addressing the 7 Behavior Analysis & Safety Improvement Categories (BASICs) of CSA 2010: • Unsafe driving • Fatigued driving • Driver fitness • Controlled substances/alcohol • Vehicle maintenance • Cargo related • Crash indicator.

Rest assured, J. J. Keller’s experienced regulatory experts are here to help you understand and prepare for CSA 2010.

We offer a wide range of transportation safety and compliance solutions, including: • Compliance manuals • Software • Online services • Training programs • Forms and supplies • Compliance services and consulting.

Visit jjkeller.com/CSA2010 or call us at

800-327-6868 today!

You Benefit From This Partnership A portion of the revenue from your purchase supports your State Trucking Association.

AC 27563

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Winter 2009

National Update NEW SECTION - Going forward, we will be adding a new section to the Iowa Trucking Lifeliner which will feature a focus on a national/federal issue. With so many critical issues now at the forefront in Washington DC, we feel it is important that readers have an understanding of these issues and the consequences these issues will eventually play at the state level. The purpose of this section will be to provide information and education on the issue and give you the tools to better understand the scope of the issue.

Interstate Motor Carriers Face Serious Problems With State Business Tax Nexus Issues

IMTA receives calls on a daily basis regarding the business tax issue and the level of frustration among IMTA members continues to escalate, especially since Nebraska has now become very aggressive in their efforts. With the help of Bob Pitcher, Vice President of State Laws with the American Trucking Associations, we are providing some additional information on this issue.

Background:

In 1992, 22 states, including Iowa signed on that it was appropriate to collect business taxes. This agreement said that a state may constitutionally impose its business taxes on a motor carrier operating within its borders, provided that the carrier has enough business contact - or nexus - with the state. What was not clearly defined is how much “nexus” is required in order to collect the tax. Essentially each state could determine that on their own.

There are several different requirements that have been created; if a carrier owns property in the state, if a carrier has intrastate authority from the state, if the carrier has employees based in that state, if the carrier does regular or frequent pickups and deliveries in that state...these all constitute the potential for collection of a business tax in the state. But the definition for regular and frequent pick ups or deliveries is very broad and the industry has been reluctant to take the matter to the courts for clarification for various reasons.

The Problem:

Due to that lack of clarity in federal law, interstate motor carriers, primarily small businesses are often subjected to disproportionate state business taxation and extraordinary compliance and administrative costs. States regularly impose taxes on motor carriers that have no location, employees or assets within these states, who pay all their fuel taxes and registration fees, and who only travel through or perhaps make incidental pick-ups and deliveries of freight.

Commonly, the tax owed is far less than the accountant’s fees and other compliance costs covered by the carriers, and states regularly bill for many years of back taxes from carriers who had no idea that any liability was owed.

One state, under color of the state law, has even went so far as to stop hundreds if not thousands of motor carrier vehicles in interstate commerce, and effectively held them and the cargos they carry for ransom until their operations pay arbitrarily assessed state taxes.

No judicial remedy is readily available for these motor carriers, since an issue involving a state tax must be addressed through the state’s own courts. No effective legislative remedy is available at the state level either, since the entities being taxed, are almost by definition, without political presence in the taxing jurisdiction. In addition, the unjustified state practices in this area seem to be spreading, at least in part in retaliation as states react to their neighbors’ activity.

Solution:

The Business Activity Tax Simplification Act of 2009, H.R. 1083 (BATSA), does not, in its current form, resolve these motor carrier problems with state tax nexus. Because their vehicles may regularly travel in many states (even though they do only incidental business there), motor carriers are in a different position from such businesses as Internet sellers, who do not have mobile physical assets.

ATA suggests that language be added to Section 3 of the BATSA to restrict state taxation of interstate motor carriers (excluding those engaged primarily in private carriage – that is, hauling their own property) to carriers that are 1. incorporated in the state 2. have their principal place of business in the state 3. have real property in the state 4. have obtained intrastate operating authority in the state This clarification of federal law will leave motor carriers subject, as they should be, to taxation in states where they have significant physical presence, and will relieve them of fiscal and compliance burdens of paying taxes in dozens of states where they have no such presence.

Work continues to get this language added to the BATSA and your help is always needed. Contact your Congressman and urge them to make this a priority.

Winter 2009

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I M TA’ s N e w e s t M e m b e r s Welcome New Members!

Anthony Pit & Lagoon, Inc., Le Mars, IA

   

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“Membership lets companies big and small be part of the voice of the trucking industry in Iowa.

IMTA constantly strives to be our member’s best business partner. Welcome new members. We are here to serve you!”

Mike Spalla, IMTA Membership Manager

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J. Pettiecord, Inc., Des Moines, IA

J.R.B. Target, Inc., Muscatine, IA

Peterson Transportation, Inc., Mason, IA Pomp’s Tire, Savage, MN T. D. Hawks, Inc., West Des Moines, IA

Renewable Fuels Grant Kimberley oversees development, management and tracks progress through Iowa Soybean Association’s strategic plan of all domestic and international demand building programs and budgets. Lead staff responsible for working with and reporting progress to the Iowa Soybean Association Board of Directors Demand Committee. Grant has been with the Iowa Soybean Association for 9 years.

Biodiesel Benefits Iowans

The biodiesel industry has come far since 1998, when the United States produced just 500,000 gallons. In 2008 U.S. production was 700 million gallons.

Biodiesel, like many industries, is currently facing challenges, including volatility of both feedstock and fuel prices, as well as the general economic slowdown. As a result, 2009 production is about half of what it was in 2008. Yet we are optimistic that better times lie ahead.

Biodiesel offers numerous benefits that make it a positive alternative to petroleum diesel.

“All Americans should like the idea of reducing our dependence on foreign oil.”

All Americans should like the idea of reducing our dependence on foreign oil.

Replacing just 5 percent of today’s diesel fuel would equal the amount of diesel fuel we refine from crude oil imported from Iraq. And biodiesel is made from renewable sources of energy, whereas petroleum fuels come from a finite resource that is rapidly depleting.

Because biodiesel reduces lifecycle carbon dioxide by 78 percent compared to petroleum diesel, it is better for our environment. In 2008, biodiesel’s contribution to reducing greenhouse gas emissions was the equivalent of removing nearly a million passenger vehicles from America’s roadways. Additionally, producing biodiesel takes far less energy than refining fossil diesel.

Climate change legislation is currently a major political issue.

Biodiesel may play a key role for the trucking industry if companies showing a measurable decrease in carbon dioxide emissions are allowed to sell their credits to companies that don’t show a decrease and need to make Grant Kimberley, up the shortfall. Biodiesel is a Iowa Soybean Association way to cut down on carbon and Director of Market develop credits for trade. Thus, a Development fleet using biodiesel could gain financially through an exchange program.

An important benefit for the trucking industry is that biodiesel adds lubricity In recent years, we’ve heard concern to fuel and gives an engine longer life. about farmers’ ability to produce enough Since sulfur was taken out of petroleum food and feed, along with fuel. In fact, diesel fuel, truckers in some cases have soybeans have traditionally been crushed seen a pronounced increase in engine for their protein, leaving oil as a bymaintenance costs. Achieving longer product. The demand for soybean oil engine life is important and biodiesel does for biodiesel has actually lowered the that. price of soybean meal used for livestock feed by $19 to $45 per ton from what it

Biodiesel offers numerous benefits that make it a positive alternative to petroleum diesel. would have been without biodiesel. Thus, biodiesel has a positive impact on the U.S. food supply. Even so, in April of 2008 the U.S. had more than 400 million gallons of surplus soybean oil that could be used for biodiesel.

For many, the bottom line is a matter of dollars and cents. A Merrill Lynch commodity strategist has determined that oil and gasoline prices would be about 15 percent higher now if biofuels were not involved in the energy supply. At the same time, a recent study by the United Soybean Board determined that biodiesel has added 25 cents to the price of soybeans.

Thus, biodiesel is good financially for both consumer and farmer. And we have not even mentioned the potential boost Iowa’s 15 biodiesel plants could offer to local economies, directly and indirectly, in terms of jobs and tax revenue, if used at their capacity of 325 million gallons per year.

Whether your motivation is prolonging your engine, reducing dependence on foreign oil, concern for the environment, supporting Iowa’s economy or simply your bottom line, biodiesel makes sense.

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Upcoming Education Seminars

January

January 21, 2010—New Entrant Audit Training Seminar Iowa Motor Truck Association—Des Moines 9:00 AM—4:00 PM $100/Member $125/Non-Member

February

February 25, 2010—Drug & Alcohol Regulation Seminar Iowa Motor Truck Association—Des Moines 9:00 AM—3:00 PM Register $100/Member $125/Non-Member

March

TODAY!

March 24 & 25, 2010—Cargo Tank Seminar Iowa Motor Truck Association—Des Moines March 24—9:00 AM—4:00 PM March 25—8:30 AM—4:00 PM $250 Per Person

April

April 8, 2010—Full Day Compliance Seminar Iowa Motor Truck Association—Des Moines 9:00 AM—3:00 PM $100/Member $125/Non-Member April 27, 2010—Half Day Compliance Seminar Iowa Western Community College—Council Bluffs 9:00 AM—Noon $50/Member $75/Non-Member

Mark Your Calendars—Registration Coming Soon!

May 2010— Load Securement & Vehicle Inspection—May 12 August 2010— Full Day Compliance (Dubuque) - August 19

For More Information Visit www.iowamotortruck.com

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Winter 2009

Membership Update Are you taking advantage of your Member Services?

IMTA has over 700 members and has been proudly serving the trucking industry since 1942. While the core of the association’s work is legislative representation, that doesn’t pay the bills and over the last two decades, your association has continued to provide additional services and products that not only benefit the membership but also provide revenue to the association.

This non-dues revenue is important because it prevents regular increases of membership dues.

In a recent poll of the membership, only 15% of those polled could list all the services and products that were available to them through their association. While IMTA has seen an increase in participation at events and an increase in service requests over the last year, it is always important that IMTA members take full advantage of their membership. Are you aware of all the services and products we offer?

Educational Seminars:

IMTA continues to offer educational sessions that are of interest to the members. IMTA tries to offer monthly educational programs that focus on all areas of the trucking operation. IMTA strives to create quality educational sessions with qualified trainers and educators at a reasonable cost. While the majority of IMTA’s educational sessions are held at the IMTA headquarters in their 60 seat training facility, IMTA is more than happy to bring an educational program out to the members as long as 10 people are in attendance. For more information about IMTA’s educational program please contact Holly Mueggenberg, IMTA’s education coordinator at 515-2445193 or holly@iowamotortruck.com

Iowa Truck Services:

As of January 1, 2010, Iowa Truck Services (ITS) will be offering a variety of services to the membership. IMTA’s

auditing services are the foundation of ITS. IMTA members can take advantage of a variety of different types of compliance and regulatory services through ITS. IMTA offers auditing programs that are as comprehensive as needed. In addition to the auditing services, ITS offers other regulatory assistance programs such as driver training and assistance in addressing specific issues as a result of a FMCSA audit. The integrity and quality of this assistance is of the highest degree and many IMTA members take advantage of this service on a regular basis. There are charges for some of the services based on the level and time required to fulfill the desired request.

As a result of the popularity of the auditing services, members began to ask IMTA to assist with other DOT services such as IRP, licensing and permitting. ITS is happy to provide service in those areas as well. If you are interested in learning more about the variety of services that are available through ITS, please contact Don Egli, IMTA’s Director of Safety, don@ iowamotortruck.com or Mike Spalla, IMTA’s Membership Manager, mike@ iowamotortruck.com

Public Relations Assistance:

IMTA is always happy to help members with public relations efforts. More than one IMTA member has called and requested IMTA expertise in helping with a PR issue. IMTA has helped members who have been involved in a bad accident, experienced negative PR within their own community or needed some guidance to celebrate a milestone event. IMTA has a variety of different PR packages that they can offer and are always available to be of assistance.

Health Insurance:

Since the early 1970s, IMTA has offered a variety of different health insurance programs to the membership. Over the years, the guidelines have changed dramatically as to what an association can provide to its members but a long

standing relationship with Wellmark Blue Cross/Blue Shield has enabled IMTA to continue to offer some guidance and help to trucking companies of all sizes. For more information on IMTA’s health insurance program please contact IMTA President Brenda Neville, brenda@iowamotortruck.com

Products:

IMTA has over 700 members and has been proudly serving the trucking industry since 1942.

Through partnerships with both JJ Keller and ATA, IMTA members can take advantage of a large selection of products ranging from log books to specialty items.

As partners with these providers, IMTA members are alerted to special items and pricing and have the opportunity to purchase the highest quality items from suppliers that are directly tied to the industry.

Drug Testing & Driver Screening:

HireRight Serving the transportation industry since 1981, HireRight provides innovative and propriety background screening services to the transportation industry. Members using HireRight join more than 20,000 other transportation companies and State Associations who utilize HireRight for their screening needs.

HireRight DAC provides a variety of screening services for the trucking industry, including employee screening services, DOT Drug & Alcohol testing and history services, Driving records checks and violation alerts, and background verifications including; worker’s compensation searches, social security number validation, credit reports, employment and drug and alcohol history verification, and county, state and federal criminal court records searches.

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Members in the News

Decker Truck Line, Inc.

Decker Truck Line, Inc. was the recipient of the 2009 Iowa Freedom Award for large employers. Governor Chet Culver along with Dick Rue, chairman of the Iowa Committee of the Employer Support of the Guard and Reserve (ESGR), presented Tony Russell, chief operating officer of Decker Truck Line, Inc. with the award during a ceremony recently.

National Guard and employee at Decker Truck Line, Inc. nominated the company for the award. “Decker Truck Line held a send-off for me with food, treats, care packages and many well wishes from my co-workers. In August 2007, my town of Dakota City received a record amount of rain. The storm sewer to my house backed up into our finished basement and caused a lot of damage. When hearing about this from my wife, Decker Truck Line sent up several shop employees to clean up and remove the damaged goods. I can’t thank Don Decker and the company enough for the support given to my family while I was performing military duty.”

McKenna Truck Center

Jeff Schroder

Jeff has been a key executive with McKenna Truck Center since August of 1998 and was previously V.P. of Fixed Operations.

In May of 2009 Decker Truck Line, Inc. also received the Pro Patria award, the Nominations to receive ESGR awards highest recognition given in Iowa by ESGR come from a Guard or Reserve member to employers for their support of their who is employed by the organization they employees who serve in the National are nominating, or from a family member. Guard and Reserve.

SFC Troy Rubel, a member of Iowa

Peterbilt of Sioux City

Heath Vanden Bosch was recently promoted to Body Shop Manager at Peterbilt of Sioux City. Vanden Bosch was Heath Vanden Bosch promoted to painter in 2002, assistant body shop foreman/painter in 2004, body shop foreman in 2006 and assistant body shop manager in 2008.

Jerry Hesse

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According to Hesse, Vanden Bosch has some good ideas to implement and relates well to customers, insurance companies and employees.

His knowledge

Winter 2009

of paint issues and ability to work with the scheduling and inventory computer systems are an asset to the management of the operation.

After 40 years in the automotive field, Jerry Hesse is retiring from full-time work.

The former manager of the Peterbilt of Sioux City truck body shop will now use his knowledge and experience part-time, promoting the heavy-truck body shop services of all Peterbilt dealerships in the region owned by Sioux City Truck Sales, Inc. (SCTS).

In his new position, Hesse will call on prospective customers and work with insurance companies two days a week to solicit business for all SCTS dealerships.

He will continue to provide advice and assist with training at body shops as requested.

Jeff Schroder has been promoted to the office of Vice President and General Manager of McKenna Truck Center.

David Irving

David Irving has joined McKenna Truck Center as Vice President of Sales. In this position David will be responsible for all facets of New and Used Truck Sales.

He has been successfully involved on the manufacturing and sales side of the trailer business as well as management functions over the past twenty years.

Baur Built, Inc.

Bauer Built, Inc. announces the expansion and relocation of one of their oldest Tire Centers in Mason City.

Effective December 14, 2009 Bauer Built moved their Mason City, Iowa Tire Center from its former downtown site on North Adams Street in Mason City to the west side of the city on Highway 18. This new modern full service tire facility will allow Bauer Built to better service their customers with products and services they were accustom to receiving in the past and to expand the product and service offering to include truck and bus alignment capabilities.

Members in the News Warren Transport, Inc.

Warren Transport, Inc. (WTI) is very proud to announce that contractors Bradley Conn, Robert McCray, and Steven Recker have been named Finalists in the Truckload Carriers Association’s national 2009 Owner Operator of the Year Contest!

This elite contest selects the very best from hundreds of thousands of owner/ operators. They must demonstrate their professionalism through their safety records, their contribution to their communities, their industry, and their companies, all while operating a successful business.

Bradley Conn

Bradley Conn is a two-time finalist in the TCA contest.

TanTara Get’s Award from Iowa Hawkeyes

For the past 30 years the Iowa Hawkeye football team has been represented by a beautiful tractor trailer unit that proudly represents the team at every game. Mike Michael Riggan TanTara Transportation Riggan, TanTara Corp.

Transportation and Ed Huff have provided the power unit and trailer for the Iowa Hawkeyes Football Team. Often time, Mike Riggan has personally driven the truck to more games than can be counted on multiple hands. This past December, Mike and Ed Huff were recognized for their ongoing commitment to the Iowa Hawkeye Football Program. Mike and

Conn has been driving for 22 years with more than two million accidentfree miles. He has been with WTI since 1995 and has been Warren’s Driver of the Month twice. Conn has been selected as one of twelve Outstanding Professional Drivers by the Iowa Motor Truck Association two years running.

Robert McCray is no stranger to the TCA contest.

McCray has placed in the Top 10 three times, finishing 2nd in 2007! McCray has been driving for more than 35 years and Robert McCray has logged more than three million accident-free commercial miles.

He has been with Warren for more than 18 years, has been Warren’s Driver of the Month an amazing three times, and

was named Warren’s Driver of the Year in 2005. McCray was also selected as a 2006 Outstanding Professional Driver by the Iowa Motor Truck Association.

Steven Recker is a four-time finalist in this high-profile contest. Recker has been driving for over 36 years and has logged nearly three million accidentfree commercial Steven Recker miles. He has been with Warren for 24 years and has been its Driver of the Month two times. Recker was selected as a 2006 Outstanding Professional Driver by the Iowa Motor Truck Association and was the IMTA’s Driver of the Year and a member of the IMTA Road Team.

Ed were presented with the prestigious Bump Elliott Award.

The Bump Elliott Award is presented to an individual that goes above and beyond for the football team. The football team and coaches actually determine who the award recipient is going to be and it was with great pride that Mike Riggan accepted the award. As any IMTA member knows, Mike Riggan is a positive supporter of the program and far beyond the biggest fan. Because of that unwavering commitment and support, Mike Riggan was most deserving of this special award.

“Mike’s strong and loyal interest in our team, as well as his longtime support of our team, is greatly appreciated by everyone at The University of Iowa. On a personal note, I have valued Mike’s friendship dating back to the early 1980’s – it’s absolute and unwavering.” said Iowa Hawkeye Coach, Kirk Ferentz.

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HireRight DAC Trucking Solutions Maintain compliance and hire drivers more efficiently with HireRight, the leader in driver screening and drug & alcohol testing. » DAC Employment History File » Drug & Alcohol Testing » Motor Vehicle Reports » Criminal History Reports Discount available for Iowa Motor Truck Association members

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www.hireright.com 800.400.2761

© 2009 HireRight, Inc. All rights reserved.

For a listing of state Private Investigation licensing information for Altegrity, Inc. companies, go to www.altegrity.com/compliance.

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Your Association EXECUTIVE STEERING Committee 2010

Special Thanks and Appreciation to IMTA’s Volunteer Leaders

Like every other trade association, IMTA’s volunteer leaders are the foundation of its ongoing success and vitality. These volunteer leaders provide a variety of valuable resources and their commitment and involvement with IMTA is admirable and appreciated.

The following pages contain the names and the faces of the folks that are stepping up and leading your association through another year of challenges and opportunities by either chairing or serving on IMTA’s various committees. These folks represent a variety of operations of various sizes located throughout the entire state. The time, energy and expertise they share with the association enables it to be one of the most effective trade associations in the State of Iowa and on the national level as well. We are proud of their service and please know that they are representing the interests of Iowa’s trucking industry with great commitment, pride and dedication.

Bob Kohlwes BTI Special Commodities, Inc.

Mark Zieman Cherry Valley Enterprises, Inc.

George Crouse Crouse Transportation Services, LLC

John Smith CRST International, Inc.

Don Decker Decker Truck Line, Inc.

Dan Stevens Farner-Bocken Company

Murry Fitzer Florilli Transportation, LLC

Dave Dickey Harold Dickey Transport, Inc.

Mike Gerdin Heartland Express

Jeff Wangsness JMT Trucking Company

Jackie Johnsrud Johnsrud Transport, Inc.

Mark Olson Olson Explosives

Kevin Gass Perishable Distributors of Iowa Ltd.

Steve Schuster Schuster Company

Michael Riggan TanTara Transportation Corp.

Tim Annett Worldwide Logistics

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Your Association FINANCE Committee 2010

Robert Sturgeon Barr-Nunn Transportation

Bob Kohlwes BTI Special Commodities, Inc.

Mark Zieman Cherry Valley Enterprises, Inc.

George Crouse - Chairman Crouse Transportation Services, LLC

Kevin Gass Perishable Distributors of Iowa Ltd.

Kyle Krause Solar Transport

Tim Annett Worldwide Logistics

Dave Dickey - Chairman Harold Dickey Transport, Inc.

Pat Storey Motor-Ways, Inc.

Murry Fitzer Florilli Transportation, LLC

F O U N DAT I O N Committee 2010

Bob Kohlwes BTI Special Commodities, Inc.

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Jack Sawyer Des Moines Transportation Company

Winter 2009

Vernon Van Wyk Van Wyk Freight Lines, Inc.

Your Association C O M P E N S AT I O N Committee 2010

Bob Kohlwes - Chairman BTI Special Commodities, Inc.

George Crouse Crouse Transportation Services, LLC

John Smith CRST International, Inc.

Don Decker Decker Truck Line, Inc.

Jeff Wangsness JMT Trucking Company

Michael Riggan TanTara Transportation Corp.

S T R AT E G I C P L A N N I N G Committee 2010

Bob Kohlwes BTI Special Commodities, Inc.

Mike Bagg Central Trailer Service

Jeff Wangsness JMT Trucking Company

Mark Zieman Cherry Valley Enterprises, Inc.

Jackie Johnsrud Johnsrud Transport, Inc.

Murry Fitzer Florilli Transportation, LLC

John Minor Midwest Wheel Companies

Pat Kuehl Great West Casualty Company

Michael Riggan - Chairman TanTara Transportation Corp.

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Your Association L E G I S L AT I V E / PAC Committee 2010

Bob Kohlwes BTI Special Commodities, Inc.

Fred Grask Cedar Rapids Truck Center

Mark Zieman - Chairman Cherry Valley Enterprises, Inc.

Dan Stevens Farner-Bocken Company

Clayton Fisk Warren Transport, Inc.

George Crouse Crouse Transportation Services, LLC

Jeff Wangsness - Chairman JMT Trucking Company

Mark Olson Olson Explosives

Kevin Gass Perishable Distributors of Iowa Ltd.

Delwin Van Wyk Interstate PowerSystems

Mike Sullivan Kenworth Mid Iowa

Marc Hyland Majestic Truck Services

John Minor Midwest Wheel Companies

BUILDING Committee 2010

Bob Kohlwes BTI Special Commodities, Inc.

ALLIED

Committee 2010

Mike Bagg Central Trailer Service

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Your Association CONVENTION Committee 2010

Bob Kohlwes BTI Special Commodities, Inc.

Mark Zieman Cherry Valley Enterprises, Inc.

Steve Schuster Schuster Company

Dan Stevens Farner-Bocken Company

Michael Riggan TanTara Transportation Corp.

Jeff Wangsness JMT Trucking Company

Donna Weinrich-Lucht Weinrich Truck Lines

TDC/TRUCK SHOW Committee 2010

Darrell Whitehead ARGEE Transport

Bob Kohlwes BTI Special Commodities, Inc.

George Crouse Crouse Transportation Services, LLC

Brian George GTL Transportation, Inc.

Clayton Fisk Warren Transport, Inc.

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Your Association in Action Board Meeting Your IMTA leaders gathered in November for the annual fall board meeting. At this meeting, the IMTA finances are reviewed and the 2010 budget is approved.

In addition, the group reviews all the legislative policies for the upcoming

John Minor - Midwest Wheel Companies and Jim Farr - Iowa City Brake, Inc.

session and upon their eventual approval, IMTA has its official position on a number of important legislative issues. The group also hears from volunteer committee leaders and has time to network with one another as well. This year, Bob Costello, ATA’s economist was on hand to give an economic update and Governor Terry Branstad was the luncheon speaker. Both guests provided the group with outstanding information and the meeting was once

Bob Costello - ATA, gave an economic update at the board meeting.

Mark Zieman - Cherry Valley Enterprises, Governor Terry Branstad and Bob Kohlwes - BTI Special Commodities, Inc.

again extremely valuable as IMTA leaders made decisions for the future.

“IMTA has a tremendous group of directors and we are always very pleased and proud of the time and energy they provide to the association. Their leadership is tremendous and we are fortunate to have a group that cares so deeply about the industry and their association,” said IMTA President Brenda Neville.

Mike Sullivan - Kenworth Mid-Iowa and Tim Annett - Worldwide Logistics

Kyle Krause - Solar Transport, Steve Sukup - Sukup Manufacturing Co. and John Smith - CRST International, Inc.

IMTA Board Members gathered in November for an annual meeting. Seated: Murry Fitzer - Florilli Bob Kohlwes presented Jeff Wangsness with his Transportation, LLC, Jackie Johnsrud - Johnsrud Transport, Inc., Bob Kohlwes - BTI Special Commodities, Inc., IMTA officer pin at the board meeting.

Tim Annett - Worldwide Logistics, Kevin Gass - Perishable Distributors of Iowa, Ltd. Standing: Mark Olson Olson Explosives, Jeff Wangsness - JMT Trucking Company, John Smith - CRST International, Inc., Dan Stevens Farner-Bocken Co., Mike Riggan - TanTara Transportation Corp., Dave Van Wyk - Van Wyk Inc., Dave Dickey - Harold Dickey Transport, Inc., Mark Zieman - Cherry Valley Enterprises, Inc., Steve Schuster - Schuster Co., George Crouse - Crouse Transportation Services, LLC.

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Your Association in Action Member Outreach IMTA Hits the Road

IMTA staff and leaders once again have actively been getting out to the members and updating them on the association and its many efforts. Through personal visits and member outreach activities, IMTA members are able to learn about the association’s top priorities. More events will continue to be held in January.

“We understand and appreciate the importance of us getting out to the membership and talking to them about our priorities.

The member outreach events enable us to reach a large group of members and in about two hours we are able to give them a pretty thorough update and overview of our priorities,” said IMTA President Brenda Neville.

The member outreach events enable us to reach a large group or members.

Member outreach activities were held in Dubuque and Sioux City and future events will be held in Osceola, Fort Dodge, Coralville and possibly Waterloo. The events are held over the noon hour and feature a regulatory and legislative update as well as lunch. IMTA is more than happy to conduct a member outreach in any community as long 10 people are in attendance.

(L to R) Ron Hughes – Permit Express, Ben Meier – Hawkeye International Mike Riggan – TanTara Transportation Corp., Brenda Neville – Iowa Motor Truck Association, Dave Neuwohner – All Seasons Trucking, Inc.

(L to R) Bob Kohlwes – BTI Special Commodities, Inc., Steve Schuster – Schuster Co., Brenda Neville – Iowa Motor Truck Association Dave Van Wyk – Van Wyk, Inc., Brenda Dittmer – Weinrich Truck Lines

If you are interested in holding an event in your community, please contact the IMTA office.

(515)244-5193.

IMTA Chairman of the Board, Bob Kohlwes explains the importance of being an IMTA member to the group in Sioux City.

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Your Association in Action IMTA Holiday Open House IMTA Members Gather to Celebrate the Holidays

One of the first requests made by IMTA Chairman Bob Kohlwes was that IMTA hold a holiday open house. His thought was that the members needed to get together for an event that was purely

for networking and socializing. He also felt that the members needed a positive distraction from the challenging times so many have been facing over the last year.

His request was honored and his theory was accurate, members responded in record numbers. The evening was filled with holiday cheer as members visited and socialized and enjoyed a festive

Leon Johnsrud - Johnsrud Transport, Inc., Sasha Monthei – Krug Law Firm, Clayton Fisk – Warren Transport, Inc., Delwin Van Wyk – Interstate PowerSystems

Monna Darran – TD Hawks, Mack Harbour – Reynolds & Reynolds, Inc., Tim Darran – TD Hawks

evening at the IMTA headquarters. A special thanks to the Allied Division for hosting the event and offering an opportunity for IMTA to officially kick off the holiday season. In addition, members were asked to bring a canned good and a sizeable donation was made to the Central Iowa Food Bank.

Mike Riggan – TanTara Transportation Corp., George Crouse – Crouse Transportation Services, LLC, Bob Sturgeon – Barr-Nunn Transportation, Inc.

James Twedt – Motor-Ways, Inc., Mike Bagg – Central Trailer Service, Ltd., Clayton Fisk – Warren Transport, Inc., Rory Triplett – Motor-Ways, Inc., Fred Grask, Cedar Rapids Truck Center, Inc.

Joel Mattox - Midwest Wheel Companies, Steve McEnany – Midwest Wheel Companies, Brenda Neville – IMTA, Vance Phillips – Casey’s General Stores, George Crouse – Crouse Transportation Services

John O’Halloran – Quality Services Corp., Bob Kayser – O’Halloran International, Dave Nelsen – Freightliner of Des Moines

Winter 2009

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45

Final Word

A Year in Review IMTA kicked off a truck show at the Iowa Speedway.

L to R: Bobby Hansen – Iowa Speedway, Mike Riggan – TanTara Transportation, Jimmy DeMatteis – Des Moines Truck Brokers, Inc., Chris Hetzler, & Jim Hetzler.

Members participate in Sporting Clays Fun Shoot at the 2009 IMTA Management Conference.

L to R: JP Heineman - City Carton Recycling, Tim Ockenfels City Carton Recycling, Chris Ockenfels - City Carton Recycling.

Chairman Bob Kohlwes – BTI Special Commodities, Inc. with his granddaughter Callie at his swearing in ceremony.

A special thanks to the officers for their dedicated service. IMTA Officers: George Crouse – Crouse Transportation Services, Jeff Wangsness – JMT Trucking Company, Mike Riggan – TanTara Transportation, Brenda Neville – IMTA, Bob Kohlwes – BTI Special Commodities, Inc., Mark Zieman – Cherry Valley Enterprises, Inc.

IMTA Members made a trip to Washington. L to R Bob Costello – ATA, John Smith – CRST International, Inc., Ralph Arthur – Ruan, Brenda Neville – IMTA, Donna Weinrich-Lucht – Weinrich Truck Lines, Brenda Dittmer – Weinrich Truck Lines, Mark Zieman – Cherry Valley Enterprises, Inc.

Members sit down to enjoy the banquet at the 2009 Truck Driving Championships which were held at the Iowa Speedway.

Michael Reagan, President Reagan’s son was the featured speaker at the 2009 Management Conference.

Shown here with Pinky and Loretta Van Wyk, Van Wyk Freight Lines.

Members enjoyed a nice day of golf during the Verne Simpson Memorial Fall Golf Classic at the 2009 Management Conference.

L to R: Carl Robinson - Comdata, Brian Huber Comdata, Jeremy Ihle - Ihle Transport, Mark Zieman Cherry Valley Enterprises.

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Winter 2009

US Attorney Matt Whitaker (third from left) was a speaker at the IMTA Leadership Class pictured here with Lto R: David Holdsworth - Farner Bocken Company, Brenda Neville - IMTA and Todd Kelley - Panama Transfer.

Allied members gathered for a golf outing in Altoona. John Minor, Jim Koester and Mike Callison, Midwest Wheel Companies and R.W. McDowell.

The Truck PAC Iowa Fall Motorcycle Ride was again another success. Delwin Van Wyk Interstate Power Systems and Greg Olinger with Manatts chaired the event.

IMTA’s policy committee gathered in May to review IMTA’s legislative efforts.

Matt Strawn, Chairman of the Republican Party of Iowa and Jeff Boeyink also with the Republican Party of Iowa at the time gave the Board an update.

Kyle Krause – Solar Transport and Steve Sukup – Sukup Manufacturing Co. catch up at an IMTA function.

IMTA Members spent time at the capitol meeting with legislators on issues impacting the trucking industry.

Board Members gathered for an annual meeting at the IMTA office.

ICSM Members participate in a ride along program with the Iowa State Patrol.

The Foundation awarded over $10,000 in scholarships this year. Here the Bob Bannister family presents a scholarship check to Allison Adams, daughter of Doug Adams from Johnsrud Transport.

L to R: Brandi Bannister, Doug Adams, Allison Adams, Kim Bannister and Clark Bannister.

Engine Manufacturers came together to educate IMTA members. L to R: Steve Matteson - Volvo, Joe Favia - Mack Trucks, Inc., Doc Wilson - Cummins Central Power, LLC, Steve McDermott - International Truck & Engine and Phil Truong Detroit Diesel.

Winter 2009

Lifeliner

47

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