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AASP1015-92215bu.qxp_AASP News 9/30/15 2:11 PM Page 1

October 2015

Who’s Looking Out for You? A member’s experience with a business fire claim

PLUS: Write it Right: Estimating Best Practices Seminar Registration www.grecopublishing.com


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AASP-MN News


AASP-MN News

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AASP-MN News


CONTENTS AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 • Roseville, MN 55113 Phone: 612-623-1110 • Fax: 612-623-1122 email: aasp@aaspmn.org • website: aaspmn.org. All rights reserved. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. Cover image © www.istockphoto.com.

AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.

Vol. 23 No. 10

MECHANICAL DIVISION DIRECTOR’S MESSAGE........................................6 Insane! by Wayne Watson, AASP-MN Mechanical Division Director

2015 - 2016

LEGISLATIVE UPDATE ......................................................................7 Fast Pace Forecasted for 2016 Legislative Session by Kevin Walli, AASP-MN Lobbyist

PRESIDENT Tom Gleason

LOCAL NEWS ................................................................................8

IMMEDIATE PAST PRESIDENT Jerald Stiele

NATIONAL NEWS ............................................................................11

SECRETARY-TREASURER Greg Kasel, AAM

INSURANCE I.Q. GUEST EDITORIAL ......................................................12 Who’s Looking Out for YOU? A Member’s Experience with a Business Fire Claim by Bob Pearson, Pearson Auto Body

AASP-MN BOARD MEMBERS

COLLISION DIVISION DIRECTOR Jim Siegfried, AAM

D.E.G. ESTIMATING TIPS ..................................................................19

MECHANICAL DIVISION DIRECTOR Wayne Watson

“WRITE IT RIGHT: ESTIMATING BEST PRACTICES” SEMINAR REGISTRATION ....21

ASSOCIATE DIVISION DIRECTOR Kevin Martin COLLISION SEATS Joyce Weinhandl Will Latuff

PARTNERS IN PREVENTION................................................................23 Painter Training by The Minnesota Pollution Control Agency CASH IN ON YOUR MEMBERSHIP!........................................................26 Business Forms, Calendars and More

MECHANICAL SEAT Mars Overlee

STAFF EXECUTIVE DIRECTOR Judell Anderson, CAE, AAM OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver

UPCOMING EVENTS November 10, 2015 Write-it-Right: Estimating Best Practices Radisson Minneapolis/St. Paul Roseville, MN

January 12&13, 2016 AASP-MN Race for Automotive Education ProKart Indoors Burnsville, MN

April 14, 2016 AASP-MN 2016 Leadership Conference Ramada Plaza Minneapolis, MN

For more information, contact the AASP-MN office at 612-623-1110 or visit the Association’s website, www.aaspmn.org.

ADVERTISERS’ INDEX PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut St., Suite 202 Nutley, NJ 07110 PHONE: 973-667-6922 • FAX: 973-235-1963 PUBLISHER: Thomas Greco (thomas@grecopublishing.com) DIRECTOR OF SALES: Alicia Figurelli (alicia@grecopublishing.com) MANAGING EDITOR: Jacquelyn Bauman (jacquelyn@grecopublishing.com) EDITOR: Joel Gausten (tgpjoel@verizon.net) ART DIRECTOR: Lea Velocci (lea@grecopublishing.com) OFFICE MANAGER: Donna Greco (donna@grecopublishing.com) www.grecopublishing.com

AmeriPride........................................................11 Assessment Associates Internatonal ................18 Axalta Coating Systems ....................................OBC Blue Net Inc. ....................................................7 Buerkle Hyundai................................................18 Choice Auto Rentals..........................................3 Dentsmart ........................................................6 Inver Grove Honda / Inver Grove Toyota..................20 Jack McClard....................................................22 Keystone ..........................................................25 Lowell’s PCE ....................................................20 Maplewood Toyota............................................22 Mercedes Benz of Maplewood ..........................23

AASP-MN News

Mills Parts Center ............................................16 Morrie’s ............................................................9 Motorwerks BMW ............................................IBC Motorwerks Mini ..............................................IBC MPA......................................................................................14-15 Rosedale Chevrolet ..........................................3 Roseville Chrysler ............................................16 Steck Manufacturing ........................................20 Straight & Square ............................................16 Thexton Manufacturing ....................................25 Toyota Group ....................................................4 West Bend Insurance ........................................IFC

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MECHANICAL DIVISION DIRECTOR’S MESSAGE

Insane! by Wayne Watson AASP-MN Mechanical Division Director

I recently had the opportunity to go for a ride in a 2015 Tesla AWD Model S. The first item the owner pointed out to me was the button on the display screen: Sport or Insane. Only Tesla could come up with this jargon. Well, guess what? We were soon to find ourselves in “Insane” mode and insane it was! As we launched away from the stoplight, the car went 0-60 mph in 3.2 seconds. It reminded me of Power Tower at Valley Fair. My stomach was in the back seat with butterflies in it. The adrenaline rush was insane, just like the button stated. The really weird thing was the noise; there wasn’t any—no motor, no transmission, no differentials and, in fact, not even any fluids except washer solvent. Weird, huh? He also showed me a new feature that was downloaded the night prior – autopilot. Yes, autopilot. Autopilot activation automatically follows the road, steering around curves and varying its speed to match the flow of traffic. It automatically changes lanes by tapping the turn signal, has traffic-aware cruise control, forward collision warning and camera-enabled automatic high/low beam headlights. Soon it will have autopilot parking. This helps you find a parking spot and automatically parks in it. In the city, it will notify you when it finds a parallel parking spot, then, controlling the steering, acceleration and deceleration, backs smoothly into the parking spot.

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When I started in the auto industry, carburation and electronic ignition had a stronghold and I was taking point kits off the shelf like candy and installing them. Not long into my career, fuel injection entered the market. I still remember the sign at one of our competitors’ drive entrances: “We do not work on fuel-injected vehicles.” My point here is that technology is changing fast, so you need to embrace the change or you will not exist in the future. If you would have told me back when I started my career that we would be working on cars that have autopilot and are able to update themselves over the Internet wherever 3G is available, I would have told you that you were insane. Technology is fast and the ball is rolling faster and faster. It makes me wonder what the next 20 years will bring. With all that, I would like to challenge you to continue training in all aspects of your business. There are so many types of technical things that can make your life easier. Take advantage of the training AASP-MN provides for you. As a Board member, I can tell you a lot of thought and research goes into the types of training provided by the association. A wise man once told me, “Change brings opportunity.” Bring it on!

AASP-MN News


LEGISLATIVE UPDATE

Fast Pace Forecasted for 2016 Legislative Session by Kevin Walli, AASP-MN Lobbyist

At the close of the 2015 Session, legislative leaders selected March 8, 2016 as the date for the start of the next Session. The Legislature typically convenes in January. While the late start will give everyone a bit more time to get ready for the Session, once it begins, things are going to move very quickly. There will be just 10 weeks for bills to be heard in House and Senate Committees, passed by each body, referred to Conference Committee to resolve differences and voted on once again for final enactment. The first stop in any Legislative

Session is in the Policy Committees of the House and Senate. It is possible that legislative leaders will establish a First Committee Deadline just two weeks into the Legislative Session. This means that some Committees may have as few as four hearings before they shut down for the year. The Minnesota Constitution establishes the date by which the Legislature must complete its business. Article 4, Section 12 of the Constitution provides that “The Legislature shall not meet in Regular Session…after the first Monday following the third Saturday in May of any year.” In 2016, that means everything is shut down

AASP-MN News

by May 23. This tight calendar simply means that we must make good use of the time from October to February to convince legislators that our priority concerns should be heard among the early few bills that are considered in next year’s Committee process. AASP-MN has a good track record for lining up issues early. The upcoming 2016 Session will really put us to the test given how narrow the window is within which we must work.

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LOCAL NEWS

AASP-MN IS FIRST PLATINUM SPONSOR OF INDUSTRY WORKFORCE INITIATIVE At a time when companies throughout the industry are struggling to find the level of highlyqualified employees they need now and into the future, AASPPLATINUM MN has stepped up to the plate with $50,000 to actually do something about it. The funds will support a campaign designed to feed the pipeline of future employees by changing the narrative about automotive service careers, informing potential students and employees about the number of rewarding opportunities that exist within the automotive industry – AND helping students who have the skills and profile for success explore career decisions in the trade. This is an effort of a newly-formed group, Minnesota Careers in Automotive Repair and Service – aka MNCARS – of which AASP-MN is a member. MNCARS is made up of a crosssection of industry representatives, including independent repair shops, new car dealers, multiple shop operators (MSOs), suppliers, insurers, technical college administrators and other industry organizations. The goal of MNCARS is to ensure a future workforce for Minnesota’s automotive service industry by raising awareness and recruiting young people into post-secondary automotive education programs (collision and mechanical) and industry careers. MNCARS has partnered with Risdall, a leading marketing and communications agency, to develop and oversee the two-year campaign. Important elements of the initiative will include: • Connecting with potential students, their parents and high school influencers, including counselors, to provide a better picture of the pathways to success and opportunity available in the automotive industry • Developing an online site to serve as a centerpiece in educating our target audiences and the broader community on the opportunities available within the automotive industry. This hub, and accompanying printed materials, will share the exciting careers, success stories and advantages that a two-year automotive program offers in getting started in the workforce • Hosting live events at schools and community locations to engage students in both fun and informative activities to allow them to begin to think of automotive repair as more than a hobby • Creating an “influencer kit” to provide professionals that work with students a simple-to-use toolkit that presents positive information on the industry and career options • Media stories and outreach to address misperceptions and inform individuals throughout Minnesota of opportunities within the automotive service industry The AASP-MN Board of Directors identified the availability of a future workforce as a key priority for the association during its strategic planning session in early 2014. Since that time, AASP-MN has dedicated time, money and resources to support various projects and outreach efforts to high school automotive instructors and counselors, as well as scholarships for post-secondary automotive students. “It’s time our industry was intentional about its collective brand as employers,” says Judell

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Anderson, AASP-MN Executive Director. “It will take a collaborative and unified effort to cut through all the ‘noise’ to overcome the misperceptions about working in the automotive service industry and attract the kind of high-level employees we need. The MNCARS initiative is designed to accomplish just that.” Sponsorship opportunities are available for those within the industry to support these important efforts. Sponsorship can range from one time or annual pledges, to corporate sponsorships which will include prominent placement and recognition on the MNCARS campaign website. For more information, contact aasp@aaspmn.org or visit the AASP-MN website, www.aaspmn.org.

AASP-MN TO HOST “WRITE IT RIGHT: ESTIMATING BEST PRACTICES” SEMINAR AASP-MN is pleased to announce that it will partner with Axalta Coating Systems to co-host “Write it Right: Estimating Best Practices,” Tuesday, November 10, 2015, from 10am – 4pm, at the Radisson Minneapolis/St. Paul North in Roseville. The seminar, presented by industry expert Mike Anderson (Collision Advice), will provide estimators with resources to understand, support and justify their position on what it takes to restore a vehicle back to pre-accident condition such as websites, tools, forms and other technology applications that will allow the estimator to be more efficient and accurate in writing a thorough damage analysis. For more information or to register, see page 21 or visit the association’s website, www.aaspmn.org. UNITED FIRE GROUP DECLARES DIVIDEND The AASP-MN property and liability insurance program written through United Fire Group recently declared a dividend. Over $68,500 was dispersed to participating members (an average of $570 each!). The 2015 dividend is equal to five percent of members’ earned premium for participating during the 2013/14 plan year. Nearly 120 members qualified for the dividend and many more will qualify for a dividend next year, provided the group’s loss experience is good and a dividend is declared. AASP-MN would like to thank members that are participating and doing their part to keep the program vital. If you’d like to learn more about this valuable member benefit program, contact Dennis Spindler at 763-549-2238 or dspindler@cbizaia.com.

AUTOSHOP SOLUTIONS AND AASP-MN PARTNERSHIP BRINGS NEW BENEFITS FOR MEMBERS AASP-MN is proud to team up with Autoshop Solutions, a leading website design and Internet marketing agency for the automotive aftermarket industry, to provide a new AASP-MN member benefit. AASP-MN members can now get a $500 setup discount when signing up for Autoshop Solutions exclusive Marketing Success Package. With Autoshop Solutions’ Exclusive Marketing Success Package, AASP-MN members receive a new custom website, Google Adwords management, social media marketing and search engine optimization (SEO) management. It is a great

AASP-MN News


way to boost sales with proven Internet marketing strategies – and AASP-MN members now get $500 OFF the setup cost. Autoshop Solutions has a long-standing partnership with AASP National, and has built both the AASP National website, as well as the AASP-MN website. “The Internet can be very powerful in driving new business to your shop if utilized correctly,” states Autoshop Solutions’ CMO, Margaret Klemmer. “We are proud to partner with AASP-MN to help member shops take full advantage of their website and Internet marketing efforts and boost their sales!” AASP-MN members interested in taking advantage of this exclusive opportunity and discount can visit www.autoshopsolutions.com/ aaspmn for more information and to signup. PILLSBURY CELEBRATES 25 YEARS WITH AASP-MN Jodi Pillsbury recently celebrated 25 years as office manager of AASP-MN. “It’s been great witnessing the association grow and evolve over the years. I have had the opportunity to be part of an organization that can, and does, truly make a difference and I take great pride in that,” Pillsbury said. “I’m looking forward to another 25!”

ABRA AUTO BODY ACQUIRES LEHMAN’S GARAGES ABRA Auto Body & Glass announced the acquisition of all six Lehman’s Garage locations within the Twin Cities area of Minnesota. The details of the transaction were not disclosed. “Today’s acquisition is particularly special for us as Lehman’s has been serving the community for almost a century. The history, the reputation, and the dedication of the company to providing exceptional customer service and quality repairs is undeniable and we are eager to carry that tradition of excellence forward,” said Duane Rouse, president and CEO of ABRA. “We’ve been approached by many companies over the years,” said Karen Cossette, former CEO of Lehman’s Garage. “We chose ABRA because their work ethics closely resemble ours and we share like-minded values of integrity, employee talent and a commitment to customers. We’re proud to have them continue the legacy we’ve built over the years.” With this latest acquisition, ABRA now operates 40 repair centers in Minnesota. AASP-MN News

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LOCAL NEWS THANK YOU TO OUR 2015 SPONSORS In 2015, AASP-MN received sponsorship support from its Associate members and other industry vendors to help support the association’s educational programming and other activities. Sponsorships help AASP-MN deliver the quality programs members expect and keep registration fees affordable. Please keep the following companies in mind the next time you need products/services:

Gold Sponsors Autoshop Solutions Auto Value Parts Stores & APH Axalta Coating Systems PPG Automotive Finishes Silver Sponsors aaa Auto Parts CBIZ AIA Inver Grove Ford LKQ/Keystone Lowell’s Performance Coatings Meadowbrook Insurance Midwest Parts Advantage Mitchell International O’Reilly Auto Parts PAM’s Auto, Inc. Suburban Chevrolet United Fire Group Program Sponsors 3M AASP National CARQUEST CBIZ AIA CBIZ Payroll Dent Impressions IDENTIFIX Robert Bosch, LLC Hospitality Sponsors AmeriPride Services BASF Automotive Refinish CCC Information Services Choice Auto Rental Dentsmart PDR Enterprise Rent-a-Car Net Driven Norton Abrasives Pro Paint Metro Sherwin-Williams

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“WHO PAYS FOR WHAT”: COLLISION ADVICE SURVEY RESULTS ARE IN

Just under 61 percent of shops surveyed said they are paid “always” or “most of the time” for removing coatings from pinchwelds prior to mounting the vehicle on a frame machine when it is required for the repair. But industry trainer and consultant Mike Anderson said that percentage, from the latest “Who Pays for What?” survey results available now, isn’t high enough. “In my opinion, that 61 percent should be 100 percent,” said Anderson, president of Collision Advice and creator of the survey. Anderson noted that some automakers do not approve mounting or anchoring in the pinchweld area at all, and said shops should always follow manufacturers’ recommendations. But when mounting using the pinchwelds, he said, removal of the coatings is a must. “I have not found any vehicle manufacturer or any frame equipment company that says it’s okay to secure a fixture clamp to pinchwelds without first removing all undercoating and seam sealer,” he said. “If this isn’t done, it increases the likelihood that the vehicle can slip when you are pulling it, causing further damage or adversely impacting the accuracy of the measurements. So those coatings need to be removed in order to perform a proper and safe repair.” The pinchweld information is just one of hundreds of findings revealed in the second quarterly “Who Pays For What?” survey report (available at www.collisionadvice.com/ survey). This latest survey examines how often shops are charging – and being paid – for 20 different “not-included” repair procedures related to structural/frame and mechanical operations. (The first survey focused on refinish-related “not-included” operations.) Nearly 700 shops responded to the national survey. The survey also found that State Farm and USAA appear to understand the need for removing coatings from pinchwelds better than other insurers; more than 80 percent of their DRP shops report being paid “always” or “most of the time” to perform the procedure, compared to less than 55 percent of Progressive and Geico DRP shops. “I would encourage anyone who is not being paid for this to research it through the OEMs, I-CAR or any frame equipment company to ask if it is okay to mount a fixture clamp over a pinchweld covered with undercoating or seam sealer,” Anderson said. “They will find that the answer is a clear, ‘No.’ Shops need to understand that their technicians must be doing this.” Anderson said the quarterly surveys help raise awareness of not-included items and operations that shops may be doing but not itemizing on estimates. “The surveys will help shops understand what these operations are, and whether other shops seek and receive compensation for them – or if they truly are ‘the only one,’” Anderson said. The 51-page report of the second survey findings on frame and mechanical operations is now available at www.collisionadvice.com/survey. Also available is a 62-page report on the first survey results released earlier this year for refinish-related not-included procedures. Shops can also visit that website to sign up to take the next quarterly survey, which opens in October. Collision Advice (www.Collision See Mike right here Advice.com) is an independent training and in Minnesota on consulting firm featuring some of the most reNovember 10! spected and experienced experts in the colliDetails on Page 21. sion repair industry. Mike Anderson and his team offer real-world, cutting edge training and guidance both in the classroom and oneon-one in the shop.

AASP-MN News


NATIONAL NEWS

NICB RELEASES LIST OF 10 MOST STOLEN VEHICLES IN 2014 The National Insurance Crime Bureau (NICB) released its annual Hot Wheels report, which identifies the 10 most stolen vehicles in the United States. The report examines vehicle theft data submitted by law enforcement to the National Crime Information Center (NCIC) and determines the vehicle make, model and model year most reported stolen in 2014. For 2014, the most stolen vehicles in the nation were (total thefts in parentheses): 1. Honda Accord (51,290) 2. Honda Civic (43,936) 3. Ford Pickup (Full Size) (28,680) 4. Chevrolet Pickup (Full Size) (23,196) 5. Toyota Camry (14,605) 6. Dodge Pickup (Full Size) (11,075) 7. Dodge Caravan (10,483) 8. Nissan Altima (9,109) 9. Acura Integra (6,902) 10. Nissan Maxima (6,586) The following are the top 10 2014 model year vehicles stolen during calendar year 2014 (total thefts in parentheses): 1. Ford Pickup (Full Size) (964) 2. Toyota Camry (869) 3. Ford Fusion (819) 4. Chevrolet Impala (746) 5. Nissan Altima (687) 6. Dodge Charger (680) 7. Taotao Industry Co. Scooter/Moped (592) 8. Toyota Corolla (578) 9. Chevrolet Cruze (566) 10. Ford Focus (505) According to the NICB, although vehicle theft has been on a long downward trajectory, it is still a severe economic hardship for many to lose their vehicle to theft—especially if a vehicle is uninsured. Courtesy of Repairer Driven News

DEG INQUIRY LEADS TO CCC ADDING RAW BUMPER PREP FOR NUMEROUS MAZDAS Any repairers priming raw factory Mazda bumper covers will soon have an easier time saying so in CCC-generated estimates, according to the Database Enhancement Gateway (DEG). CCC will add a “Prep Unprimed Bumper” operation for 15 Mazda “chapters,” typically a reference to a certain design generation of a particular model. Users should see the option appear by Oct. 1, according to the DEG. The addition began with a DEG inquiry about a single model year, the 2006 Mazda 3. A shop wrote to the DEG that Farmers wouldn’t pay for a Mazda 3 bumper to be primed “only because (CCC) did not have this listed as an option.” “Nobody likes to do a manual line,” DEG Administrator Art Harris said, “because it causes red flags.” With the help of I-CAR’s Repairability Technical Support, DEG obtained proof from the automaker that 2006 Mazda 3s only had unprimed bumper covers, according to Harris. After getting that documentation,

CCC researched the issue and took it even further with the expansion to other model years. Automakers often will change whether a vehicle’s bumper covers – or perhaps even just one of the front and rear pair – are shipped raw or primed, according to Harris, who said he’d like to see all the estimating service information providers monitor and update the covers’ raw/primed status “frequently, every year.” “It really varies by OE,” Harris said. He urged any repairer or insurer confronted with an unprimed bumper but no operation line item in a particular database to contact the DEG. General Motors, Hyundai, Lexus, Mitsubishi, Saturn, Subaru, Toyota and Volvo all are known to make vehicles with unprimed bumper covers, according to CCC. If CCC doesn’t yet have information about a particular model year’s bumper covers or a part is aftermarket, a shop will still have to manually enter the data and use the CCC Guide to Estimating to obtain the labor time.

MOTORCRAFT REBATES AVAILABLE FOR INDEPENDENT REPAIR AND BODY SHOPS This rebate program is exclusively for independent repair facilities, body shops and fleets with in-house repair. Rebate savings are available for purchase from September 1-December 31, 2015. For a list of eligible products and rebate amounts, visit http://ford.parts rebates.com.

AASP-MN News

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INSURANCE I.Q. GUEST EDITORIAL

Who’s Looking O by Bob Pearson, Pearson Auto Body

At 12:58am on March 29, 2015, a significant fire at my old body shop location in Shakopee did $1.6 million of damage. The property was converted to an investment rental property after I moved my business to another building in Shakopee. Two of my major tenants were immediately displaced because of the significant damage. No lights, no heat, no water, no roof and no security – not to mention the most pungent smell imaginable. I’m writing this to share my experience and help reveal some of the elements of this type of claim, as some of you may be a tenant in someone else’s building or you might have a tenant in your own building. A fire claim will test each policy in different ways. On residential rental properties, the owner’s policy is defined as the landlord policy, and the tenant has a renter’s policy. A commercial policy is the name of coverage in the non-residential setting. The tenant will also have a commercial policy that covers his property, and he or she should have loss of income included as separate coverage. If these coverages are done properly, they dovetail beautifully if there is a claim – I’ve had one of each in the last five years. One was an electrical fire at a residence, and the commercial policy came into play at the old Pearson Auto Body location, which was an accidental fire. So starting from the beginning, the agent of record sells the policy to me. If I have a claim, I can’t look to him to be my advocate because the insurers have requested that the agent step aside and let the claims department settle the claim. In Minnesota, the agent is the legal representative of the insurance company, not the customer/insured. So you have one guy who sells it and another who tells you how it’s going to work. (It didn’t used to act out this way, but it has increasingly become the norm.) The insurer then hired an outside adjusting company to be the middleman and discuss what is going to be insured, what is not going to be insured and what depreciations are going to be levied. He’s their choice, not mine, and I have the natural assumption that he has a bias favoring the insurer, not me. He says otherwise, but I proved this differently. The old building wasn’t enabled with a sprinkler system and had only a well as a water supply. To get permission to rebuild, the fire marshal says sprinklers and a new, adequate water supply are required. Some years back, Minnesota required that a “Law & Ordinance” endorsement be included on all commercial and residential policies in Minnesota. This is a good thing. This en12 October 2015

dorsement provides coverage for the cost of anything required today (like handicap ramps, handrails in restrooms, fire suppression systems or roof loads) that wasn’t required at the time of original construction. This can be a defined dollar amount or – in my case – it was the dollars between the damage estimate and policy limits. This is where the adjuster reveals his bias. He told me that the insurance policy that I have covers only items damaged in the fire and said the company would never pay $175,000 for the water supply and sprinkler system. Wrong! I thought long and hard about this and came to the conclusion that they couldn’t escape this responsibility because the water supply was certainly


Out For

YOU?

damaged in the fire. Turns out, the insurance company didn’t hesitate to cover this, so now it’s been proven to me that this guy is not my advocate, either. Now this is the same person who determined that there was $300,000 worth of depreciation on the following items: HVAC, plumbing, electrical, sheetrock, painting, concrete, doors, glass, tile, siding, masonry, hardware, framing and metal. Now I’m thinking that a check is going to be sent to me that is $300,000 less than the estimate based on what this guy says? The guy had no idea how new anything was because you could hardly tell what it was, let alone how old it was! I had spent $50,000 a couple of years ago on upgrades, and he didn’t ask me about ANY

upgrades over the years. When I questioned this, they asked me for permits and invoices that go back to when Truman was President to prove my building updates and improvements. (By the way, with a replacement cost policy, the depreciation only applies if the structure is not rebuilt. When the building is repaired or replaced, the depreciation is recoverable after the work is completed and inspected.) So where is my advocate? You’ve got this squadron of “experts” all around you and you’re really short on tools. Enter the public adjuster – the so-called “advocate for the insured.” They come out of the woodwork after a fire, seeking opportunities to contract with insureds that are dealing with a fire loss. If necessary, they can be hired at any point during the claim process and strike a deal with you to share the proceeds that they can mine out of the damages that are not on the original estimate, kind of like a supplement. Public adjusters are really smart people. They are niche experts that can square off with the professionals on the other side on your behalf should you feel that you’re not being treated fairly. I still remain in touch with a public adjuster who has been hovering around during my claim process. He has helped me understand things that I had no idea about. For example, loss of income coverage. This is separate coverage that, as a landlord, will represent about 12 months of lost rent. From a tenant’s position, loss of income is based on lost sales because of the fire disruption. This may take different flavors depending on which company is on the policy. One of my tenants is receiving coverage based on the average of three years’ sales. Ask your sales agent about it. My main reason for sharing this article with you is to alert you to think about finding an advocate of your own. In my experience, everyone involved is looking out after their own interests. Make sure you have somebody looking after yours!

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Welcome New Members:

SEPTEMBER 2015

Heartland Service & Tire Shakopee Pete’s Tower Mobil Superior, WI Rush City Tire & Auto Rush City Shakopee Tire & Auto Shakopee West Bloomington Tire & Auto Bloomington

SAVE THE DATE!

AASP-MN Annual Meeting & Leadership Conference

Thursday, April 14, 2016 Ramada Plaza 1330 Industrial Blvd. Minneapolis, MN

IT’S NOT TOO LATE TO ORDER YOUR 2016 CALENDARS!

For more information, contact the AASP-MN Office at 612-623-1110 or visit www.aaspmn.org.

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ESTIMATING TIPS Covering Vehicle For Weld Damage – Covering the interior and adjacent panels to prevent weld spark damage during welding is a not-included operation in CCC. This is explained in DEG inquiry number 7851: “According to the MOTOR Guide To Estimating, ‘Items that are not listed under the INCLUDED/DOES NOT INCLUDE heading for any given procedure have not been considered in the estimated work time development for that procedure, unless specified by a footnote.’ Therefore, the additional work to cover and protect items is not included and should be an on-the-spot evaluation.”

Some replacement parts come from the manufacturer without seam sealer applied to the edges. An example would be a Toyota hood or tailgate. These parts need to have seam sealer applied during the repair. Audatex and Mitchell include the labor to install the seam sealer with the replacement time of the part. CCC does not include the labor for seam sealer in the replacement time and requires an on-the-spot evaluation. This can be found in the P-Pages and also the following DEG inquiries:

CCC 6781 – Estimated Release Date: Closed Proposed Resolution: MOTOR stated: 1. According to the MOTOR Guide To Estimating, “Door-Door Sheet R&R, Hinged Type,” Special Notation: a. DOOR-DOOR SHELL R&R, SLIDING TYPE SPECIAL NOTATION: “Some replacement components may or may not be supplied with duplicated OEM caulk/seam sealer. This is not included in R&R time and requires an on-the-spot evaluation. Disconnect at hinges unless otherwise noted in text.” 2. Please note, no material costs of any kind are factored into any labor or paint estimated work times. MOTOR only provides the parts, part prices, images and estimated work times (labor and paint times). Please note the application of some materials may be included, but the cost of purchasing material is not. The cost of materials is the responsibility of the shop/repairer, which cannot be determined by MOTOR and should be considered at the time the estimate is written.

Mitchell 2119 – THE LABOR TIME TO APPLY THE SEAM-SEALER TO THE HOOD HAS BEEN FACTORED INTO THE HOOD R&R LABOR TIME.

Audatex 4729 – The Audatex database includes labor for the seam sealing of tailgates (when required) as stated in the Database Reference Manual. No changes warranted at this time.

Take note that materials are not included with any labor times in any of the systems!

Weld Damage – Weld damage is a not-included operation in all three estimating systems.

Audatex – On page 56 of the Database Reference Manual it states the following under Labor Exclusions: “Replace labor does not include additional labor to repair the replaced panel and or adjacent panels which may become distorted, burned or damaged by welding, drilling, grinding and straightening.”

CCC – Page G39 of the Guide to Estimating shows: “SPECIAL NOTATION: Suggested refinish operation times do not include additional time for repair of damage to adjacent panels resulting from normal cutting, welding and grinding procedures. The amount of damage can vary considerably depending upon process and technique used by the servicing technician and, therefore, is impractical to anticipate in this publication. MOTOR recommends these factors be considered before finalizing any repair cost estimate. Typical areas to be considered are illustrated below.”

Mitchell – The Mitchell guide shows the following on page P16 under Not-Included Operations: “Feather, Prime & Block paint damage to adjacent panel and/or panels joined by welding due to burn damage (see Feather, Prime & Block definition under Refinish General Information)”

Refinish Edge and Refinish Inside are two different operations with CCC ONE. In DEG inquiry 8374 CCC states: “depending on the refinish damage and/or refinish requirements, one or both may be selected.” They go on to define the two as follows.

Visualize a driver side front door: 1. The exterior surface paint time is for the door skin. This is the surface that faces outside of the car when the door is closed. 2. The “inside” is the inside of the door shell; this is the surface area that faces the driver and interior of vehicle when the door is closed. 3. The “edge” is the area between the exterior and interior surface. This would be the crimped area as well as the portion of the door which the user describes as the “jamb” area. This is the area that faces the lock pillar.

View these and other estimate tips at www.degweb.org/estimate-tips. AASP-MN News

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20 October 2015

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22 October 2015

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by The Minnesota Pollution Control Agency

It’s time to renew training for most painters. Refresher training for painters is required by the 6H NESHAP every five years. The 6H NESHAP is the federal air quality rule that regulates all auto body shops in the country. Most shops certified that they were following the requirements of the 6H NESHAP in late 2010 or early 2011. It may be hard to believe, but that was five years ago. Painters who received 6H training less than five years ago don’t have to renew their training now. However, it may be easier to keep everyone on the same schedule and train all painters now. Painters must receive a combination of hands-on and classroom training. Although work experience could be substituted for the hands-on part of the initial training five years ago, this cannot be done for the refresher training. The goal of the 6H NESHAP is to reduce the amount of air pollution that is released into the air. For that reason, refresher training must cover how to improve transfer efficiency, use the best spray gun and equipment for the situation and keep the booth and filter in good working order. Training must also include an overview of the 6H NESHAP. Shops can provide refresher training themselves or have painters take a training course. If your paint or equipment vendor offered the initial 6H NESHAP training, check to see if they will be offering refresher training. If not, one option is the Iowa Waste Reduction Center. They provide online training at www.spray itright.com. It costs about $100, takes two hours to complete and can be done on each painter’s own pace and schedule. Keep records of the dates of initial and refresher training for

PARTNERS IN PREVENTION

each painter. Do not submit records of the refresher training, but make sure records are stored where they can be found easily if an inspector asks for them. Painters, you may want to keep your own copy of your training records. Double-check that records for other 6H NESHAP requirements are in order, too. This includes annual usage for paint strippers containing methylene chloride and how much methylene chloride is in them; documentation that spray guns are HVLP or have HVLP-equivalent transfer efficiency; documentation that paint booth filters have 98 percent capture efficiency and the test method used to determine the capture efficiency; and records of any deviations from the 6H NESHAP requirements. Some shops filed a petition for exemption from the 6H NESHAP stating that they don’t spray products containing cadmium, chromium, lead, manganese, nickel or their compounds or use methylene chloride. If your shop filed a petition for exemption, you don’t have to update, refresh, or resubmit anything. However, make sure those metals and methylene chloride haven’t crept back into the shop in the past five years. Pay special attention to the MSDS for new products or check with your supplier. Painting well is a skill and all skills can be improved and updated. Well-trained painters use less paint and thinners, which means more paint ends up on the customer’s car – not on masking and filters. It also means less air pollution is leaving your shop and the air outside is cleaner and healthier for everyone.

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SHOP HERE FIRST! AASP-MN Associate Member Directory 3M Company – St. Paul, MN aaa Auto Parts – East Bethel, MN aaa Auto Parts – Rosemount, MN AASP-MN BankCard Program – Minnetonka, MN Action Auto Parts of St. Paul, Inc. – St. Paul, MN AkzoNobel Automotive & Aerospace Coatings – Stillwater, MN AmeriPride Services – Minneapolis, MN Arcon Solutions, Inc. – Burnsville, MN Assessment Associates International – Minnetonka, MN AudaExplore – LaCrosse, WI Auto Body Specialties, Inc. – Mankato, MN Auto Color & Industrial Supply, Inc. – St. Joseph, MN Auto Nation Parts Department – White Bear Lake, MN Auto Plus Auto Stores – Bloomington, MN Auto Plus Auto Stores – Crystal, MN Auto Plus Auto Stores – Lexington, MN Auto Plus Auto Stores – Hopkins, MN Auto Value Parts Stores – St. Cloud, MN Autodata Labels, Inc. – Deer Park, NY Automotive Parts Solutions, Inc. – St. Cloud, MN Automotive Recyclers of MN – Minneapolis, MN Automotive Seminars, Inc. – Luxemburg, WI Automotive Training Institute – Linthicum, MD Autoshop Solutions – Apex, NC Axalta Coating Systems – Chisago, MN BASF Corporation – Crystal, MN Blue Net, Inc. – Eagan, MN Blue Rock Refinishing Solutions, LLC – Roseville, MN Blue Tow Service Center – Blaine, MN Boulay Financial Advisors – Minneapolis, MN Brake & Equipment Warehouse – Minneapolis, MN Buerkle Honda – White Bear Lake, MN Buerkle Hyundai – White Bear Lake, MN C.H.E.S.S. – West St. Paul, MN Car-Co Auto Parts, Inc. – Waconia, MN CARQUEST Auto Parts – Lakeville, MN CBIZ AiA – Brooklyn Center, MN CCC Information Services, Inc. – Stone Lake, WI Choice Auto Rental – Bloomington, MN Cottens’ NAPA – Anoka, MN Dent Impressions – Rogers, MN Dentsmart – Isanti, MN Derson/Clean Burn – Watertown, MN Dorman Products – Colmar, PA Dynotec Industries, Inc. – Shakopee, MN Eau Claire Auto Parts, Inc. – Eau Claire, WI Elite Auto Accessories, LLC – West St. Paul, MN Elite Worldwide, Inc. – Rancho Santa Fe, CA Enterprise Rent-A-Car – Eagan, MN Factory Motor Parts – Eagan, MN Federated Insurance – Owatonna, MN Finishmaster – Duluth, MN Finishmaster – St. Cloud, MN Finishmaster – Fridley, MN G & K Services, Inc. – Minneapolis, MN Heartman Agency – Faribault, MN Hedahls Parts Plus – Detroit Lakes, MN Hedahls Parts Plus – Fergus Falls, MN Hertz Corporation – Richfield, MN IDENTIFIX – Roseville, MN Inver Grove Ford Lincoln – Inver Grove Heights, MN

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Johnson Supply Company – Duluth, MN Kent Automotive – Minneapolis, MN Keystone Automotive – Minneapolis, MN Kukui Corporation – San Jose, CA LKQ - John’s Auto Parts – Blaine, MN LKQ - Minnesota – Albert Lea, MN LKQ - Viking Auto Salvage – Northfield, MN Lowell’s Performance Coatings & Equipment – Edina, MN Mark’s Towing, Inc. – Eagan, MN McClard & Associates – Hopkins, MN Meadowbrook Insurance – Overland Park, KS Metro Auto Salvage – Lakeville, MN Midwest Parts Advantage – Eden Prairie, MN Mighty Auto Parts – Burnsville, MN Mirka Abrasives, Inc. – So. St. Paul, MN Mitchell International – Minneapolis, MN Mitchell1 – Slidell, LA Morrie’s Automotive Group – Brooklyn Park, MN Motor Parts & Equipment – Winona, MN NAPA Auto Parts – Cambridge, MN NAPA Auto Parts – Forest Lake, MN NAPA Auto Parts – Monticello, MN NAPA Auto Parts – Northfield, MN NAPA Auto Parts – Owatonna, MN NAPA Auto & Truck Parts/Star Group – New Ulm, MN NAPA Distribution Center – Owatonna, MN NAPA Distribution Center – St. Louis Park, MN National Coatings & Supplies – Little Canada, MN National Coatings & Supplies – Rochester, MN Net Driven – Duluth, MN Northland Parts – McGregor, MN Norton Automotive Aftermarket – No. St. Paul, MN O’Reilly Auto Parts – Brooklyn Park, MN P.P.G. Automotive Finishes – Edina, MN P.P.G. Automotive Finishes – Mitchell, SD PAMs Auto, Inc. – St. Cloud, MN Parts Department of Faribault – Faribault, MN Pro Paint Metro, Inc. – Baldwin, WI Pro Paint Metro, Inc. – Roseville, MN Proven Force Clutch and U Joint – Maple Grove, MN Pump & Meter Service – Hopkins, MN Rudy Luther’s Hopkins Honda – Hopkins, MN SATA Spray Equipment – Spring Valley, MN Savage Parts Service – Burnsville, MN Scharf Auto Supply – Rochester, MN Schmelz Countryside – Maplewood, MN Sharp Auto Parts, Inc. – Stillwater, MN Sherwin Williams Automotive Finishes – Bloomington, MN Southern Minnesota Auto Supply Co. – Rochester, MN St. Paul/Mpls. Wholesale Parts – Anoka, MN Straight & Square Distributing, LLC – St. Cloud, MN Suburban Chevrolet – Eden Prairie, MN U.S. Auto Force – Appleton, WI U.S. Auto Force – Maple Grove, MN United Fire Group – Cedar Rapids, IA Valley Imports – Fargo, ND Valspar – Minneapolis, MN Wakeman Equipment Sales, Inc. – Brown Deer, WI Wallace Auto Parts – Columbia Heights, MN Wipers & Wipes, Inc. – Hugo, MN

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CASH IN ON YOUR MEMBERSHIP!

Business Forms, Calendars and More The Alliance of Automotive Service Providers of Minnesota (AASP-MN) has teamed up with Royal Business Forms and CDH Promotions to provide members discounts on calendars and printed business forms, such as: • Envelopes • Letterhead • Business cards • Repair orders • Monthly maintenance or CSI postcards • Invoices • Statements • Voucher checks • Payroll checks • Valuable core tags • Merchandise labels • Register tickets • And much more! Continuous data processing forms are available in one, two, three or four parts—multiple carbon or carbonless sets.

Order Your 2016 Automotive Calendars Now! Celebrate the year 2016 by getting your message into the home and offices of your customers and potential customers – daily. Let them know that you intend to shine bright in this new age and will be there to serve their needs. Calendars are used all year. Plus, they are often saved as personal records and looked at year after year. Calendars are used where buying decisions are made: on the job, in the office, on the road, or at home. Sixty-five percent of all calendar recipients write appointments/reminders on their calendar. This daily involvement keeps your advertising sign working all day, every day. Calendar styles and pricing can be found on the Association’s website, www.aaspmn.org. For additional information or a FREE quote on anything you currently have printed, contact the AASP-MN office at 612-6231110 or 800-852-9071 or email aasp@aaspmn.org.

AASP-MN MEMBER BENEFIT PROGRAMS WORKERS’ COMP INSURANCE Meadowbrook Insurance Group Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com Up-front scheduled credit makes Meadowbrook one of the most competitive programs around for Worker‘s Compensation insurance. In addition, members are eligible to receive an annual dividend based on the group’s loss ratio. For more information, log on to www.wcpolicy.com/aaspmn. PROPERTY/LIABILITY INSURANCE CBIZ AIA Contact: Dennis Spindler 763-549-2238 / dspindler@cbizaia.com CBIZ AIA will present AASP-MN members with quotes from multiple carriers for property/liability insurance and members can choose the program that best fits their situation. Ask about our program with United Fire Group! EMPLOYEE BENEFITS CBIZ AIA Contact: Dennis Begley 763-549-2260 / dbegley@cbizaia.com CBIZ AIA will provide AASP-MN member with quotes from multiple carriers for life insurance, health insurance, long-term care and disability insurance. UNIFORM & LINEN SUPPLIES AmeriPride Services Contact: Jim Dillon 651-955-1398 / jim.dillon@ameripride.com Discounted pricing to members on rental of uniforms, entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of their business with AmeriPride each year. CREDIT CARD PROCESSING Association BankCard Services Contact: Mac Hardin 952-933-2026 / mach@retailfinancialservices.biz Competitive rates for AASP-MN members. Terminals and printers sold at cost. Monthly rental of equipment is also available.

26 October 2015

INDUSTRIAL & PAPER PRODUCTS Wipers & Wipes, Inc. Contact: Dennis Julson 651-486-4866 Discounts on industrial supplies and paper products. Free, next-day delivery is available in the metro area. Shipping free to outstate members with $100 purchase. WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Margaret Klemmer 888-991-3449 / margaret@autoshopsolutions.com Autoshop Solutions offers custom website development, social media, SEO, PPC marketing and more, exclusively for the automotive industry. AASP-MN members receive a $500 discount off setup costs for services. Net Driven Contact: Jon Napoli 877-860-2005, ext. 400 / jnapoli@getnetdriven.com Net Driven is a market leader in website and internet marketing solutions designed exclusively for the automotive industry. AASP-MN members who choose Net Driven are eligible for a $500 discount off their 1st year setup fees. For more information, contact Jon Napoli. Stormlogix Contact: Paul Switzer 732-364-1156 / paul.switzer@stormlogix.com Stormlogix extends a discount on its website packages to AASP members. Costs can be spread out over 6 months. AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Ron Page (952) 854-6551 / ronald.page@aai-assessment.com www.auto.aai-live.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50 percent off retail price and starts as low as $15 per assessment.

TECHNICAL INFORMATION HOTLINE IDENTIFIX 800-288-6220 Members enjoy discounted prices on the industry’s #1 technical information hotline. One free call is extended to all first-time AASP-MN member callers. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discount rate on printed business forms and calendars. SHOP SERVICES Summit eMarketing Sherpas Contact: Frank Terlep 888-377-2661 / fterlep@summitsoftwaresolutions.com AASP members receive a 5% discount on all Summit eMarketing Sherpas’ services, including: website design and development, search engine optimization, email marketing and communication, online review and reputation management and social media marketing. INFORMATION PROVIDERS Mitchell1 Contact: Mitchell1 Representative 888-724-6742 x 6986 AASP members are eligible for special Mitchell 1 information and management programs at significant discounts. For more information, log onto www.mitchell1.com or contact the Mitchell 1 representative at 888-724-6742, X6986. Mitchell International Contact: Mitchell International Representative 800-238-9111 AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit http://repaircenter.mitchell.com/Catalog/OEM Repair.aspx for more information.

AASP-MN News

PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). Members who switch prior to June 30 will receive first month of payroll processing free. CHECK GUARANTEE SERVICES Certegy Check Services Contact: Heather Ellis 952-240-5017 / heather.ellis@fisglobal.com Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com 180BIZ offers BUSINESS COACHING to AASP members at a steep 20% discount! One Eighty Business Solutions LLC (180BIZ) has been helping shop owners increase profits and car count while decreasing stress since 2003. AASP members receive a discount on very affordable oneon-one coaching plans without long-term commitments and complicated contracts. 180BIZ offiers a risk-free trial of their services. To learn more, please call or email us, or visit our website. REPLACEMENT PARTS Dorman Products Phone: 800-868-5777, ext. 5329 AASP members receive insider information, special access and other perks from Dorman Products, a leading supplier of dealer “exclusive” automotive replacement parts. LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.


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AASP-MN News October 2015  

Official Publication of the Alliance of Automotive Service Providers Minnesota (AASP-MN)