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GET SMART OR BE SORRY!

Help WCA Protect Your Business


Help Us Help You! SURETY BOND INCREASE The Western Carwash Association (WCA) needs your support to amend AB 1387, legislation passed last year by Assemblyman Hernandez. The bill increased the surety bond requirement to $150,000.00 from $15,000.00— a 1000% increase. As a result of this surety bond increase, you or an operator you know may be faced with huge bond premiums, or may not even qualify for the new bond! Without securing a bond, car washes will be forced to close.

STRATEGY TO AMEND WCA, your professional industry association, is leading the battle to amend AB 1387. We have hired a lobbying firm, Political Solutions, and have developed a strategy to amend this bill. We are fighting an uphill battle, but are making progress. We have had a number of meetings with labor groups to come up with language for possible legislative fixes that will protect the worker, punish those that break the law but will not hurt those car washes operating legally. See back page of this wrap for more information on the bond and what you can do to help.

NO FREE LUNCH Unfortunately, the process is costly. Fighting legislation and protecting the car wash industry takes resources. We need to come together as an industry to ensure the viability of car washing in the future. Your support is needed if we are to win this battle. YOUR SUPPORT IS NEEDED!

DONATE TODAY! Make our voices heard loud and clear! Fill out the donation card and send in your donation with the self-addressed, stamped envelope or donate online: www.wcwa.org\donate

HELP AMEND THE SURETY BOND INCREASE

DONATION FORM

Company_____________________________________________________________________________________________________________________________________ Donor Name___________________________________________________________________________________________________________________________________ Address_______________________________________________________________________________ City__________________________State_______ Zip_____________ Phone__________________________________________________________________Email__________________________________________________________________ Enclosed is my donation in the amount of: r $50 r $100 r $150 r $200 (Recommended) Your donation amount may be tax deductible as a business expense. Check with your tax advisor. r

Enclosed is my check (payable to WCA) #________________________

r $250

r $300

r Other $_______________________

r Please charge my: r AMEX r Discover r MasterCard r Visa

Card Number____________________________________________________________________________________Exp. Date__________VCode____________________ Name on Card_______________________________________________________ Signature______________________________________________________________ Billing Address_____________________________________________________________________ City__________________________State_______ Zip_____________ Please mail form and check to: Western Carwash Association • 950 Glenn Drive, Folsom, CA 95630


1. HELP AMEND THE SURETY BOND INCREASE! 1. EXECUTIVE DIRECTOR’S MESSAGE 2. FOCUSING ON FIRST AID 4. WHEN ARE YOU REQUIRED TO FILE A GIFT TAX RETURN? 6. DETAILING AT THE CARWASH 8. WCA CONTINUES ADVOCACY EFFORTS 10. THE IMPORTANCE OF BUILDING A TUNNEL CAR WASH—WHERE ERRORS ARE MADE, SOME ARE MAJOR, SOME ARE CRITICAL 12. WCA OFFICERS AND DIRECTORS 17. INDUSTRY NEWS 20. THE CAR WASH LOUNGE

Photo from 2013 Western Carwash Show

W E S T E R N

C A R W A S H

MARCH/APRIL 2014

A S S O C I A T I O N

EXPRESS

EXECUTIVE DIRECTOR’S MESSAGE TURNING POINT

By Ross Hutchings, CAE

HELP AMEND THE SURETY BOND INCREASE! WCA is in a battle to amend AB 1387 that increased surety bonds by 1000% (by $135,000)! We are in a real battle to help reduce costs to your car wash—a lobby firm has been hired and we have met with labor groups, introducing new legislation. Unfortunately there is no free lunch—this process is costly! YOUR SUPPORT IS NEEDED—financially and personally if we are to win this battle! Donate Today at www.wcwa.org/donate   Read more about the impact of AB1387 on page 8. Your contribution is critical to protecting your bottom line and supporting the California car wash industry. Help us make our voices heard loud and clear by donating today!

The car wash industry is at a turning point. In the West, most of the industry is made up of small entrepreneurial businesses— individuals who have built their car washes themselves. Because we are an industry made up primarily of individual owners, it is more difficult to come together—to work for the betterment of the industry, improve, protect and ensure the stability of our business. This is evident by how few (percentage wise) car washes have joined WCA—their professional trade association. WCA has developed a number of benefits for all car wash owners—car wash-specific: insurance, safety manuals, employee manuals, merchant bankcard program, etc. We have developed educational tools such as articles in EXPRESS (this newsletter), roadshows/car wash tours, regional lunches, networking opportunities. In addition, WCA monitors legislation and environmental conditions and rallies car wash owners around specific issues. Unfortunately, only about 10% of this industry have joined WCA—this is a prime example of the lack of unity in this industry. Preaching to the Choir—unfortunately the ones that need to read this article are not members and/or do not bother to go to our website or read our newsletter. We are “preaching to the choir.” Because we are an industry of individuals, many of which do not see the need to join or get involved in the organization that is here to protect them, it is easier for labor unions and regulatory groups to target us. The car wash industry is at a turning point. Right now we are being portrayed as part of the “underground” economy—those that hire illegal immigrants, then do not pay them proper wages or do not abide by the labor laws. Even though these “bad actors” represent a small percentage of the industry, car washes are being portrayed as an industry where most behave badly. We need to come together as an industry and show that we represent the true backbone of America—individual, entrepreneurial and small businesses; that we are an industry that does abide by the law; we provide a valuable service for the community and provide great working jobs for many low-skilled laborers. We need to weed out those in our industry who feel they can operate outside the law. Help us protect this industry. Sign the petition, contact your legislators and donate to support our efforts (see WCA Continues Advocacy Efforts article in this issue). We are at the turning point, let’s make sure car washes remain a viable business now and in the future.


WORKERS COMPENSATION THE CAL/OSHA REGULATIONS PROVIDE GREATER INSIGHT INTO

FOCUSING ON FIRST AID First aid injuries are one of the most common yet most confusing workers’ compensation issues that California employers face. Employers are obligated to provide first aid care, but what constitutes a first aid injury? How should an employer handle a first aid injury? Who pays for the treatment?  Let’s take a look at the definition, documentation, determination and dealing with first aid injuries to provide some insight into this important topic.

DEFINITION OF FIRST AID

IS MUCH MORE GENERAL

California Labor Code §5401 defines “First Aid” as any oneSam Furno, time treatment and any follow-up visit for the purpose of WCIA President observation of: • Minor scratches • Minor cuts • Minor burns • Minor splinters • Other minor industrial injury that does not ordinarily require medical care The one-time treatment and/or follow-up visit can be conducted by a physician or a registered professional. The Labor Code also explicitly excludes serious exposure to a hazardous substance or treatment administered for exposure to pesticide poisoning from being classified as first aid.

THAN CAL/OSHA’S

DOCUMENTATION OF FIRST AID

THE TYPE OF TREATMENTS THAT QUALIFY AS FIRST AID. BECAUSE THE WORKERS’ COMPENSATION DEFINITION FOR FIRST AID

DEFINITION, MANY WORKERS’ COMPENSATION INSURANCE CARRIERS RELY ON THE CAL/OSHA DEFINITION AS THEIR STANDARD.

When a first aid injury occurs, employers are not required to provide an employee with a DWC-1 claim form for workers’ compensation benefits. First aid injuries are also not required by Cal/OSHA to be recorded on the OSHA 300 form. The Cal/OSHA regulations provide greater insight into the type of treatments that qualify as first aid.  Because the workers’ compensation definition for first aid is much more general than Cal/OSHA’s definition, many workers’ compensation insurance carriers rely on the Cal/OSHA definition as their standard. The table below is not exhaustive but does include many common scenarios employers face:

DETERMINATION OF FIRST AID First Aid

Not First Aid

Non-prescription medication

Prescription medications or non-prescription medications at prescription strength

Application of bandages, including Butterfly bandages, Steri Strips, gauze

Application of glue, sutures or staples

Negative x-ray/diagnostic test

Positive x-ray/diagnostic test

Application of hot/ cold therapy

Physical Therapy or Chiropractic care

Removal of foreign body from eye by irrigation or cotton swab

Removal of foreign body in eye by tweezers

Removal of foreign body from body part other than eye by tweezers or others simple means

Removal of foreign body from body part other than eye by other invasive techniques

Administration of Tetanus vaccine

Administration of Hepatitis B or Rabies vaccine

Continued on page 12...

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DRB Systems, Inc.® – A Record of Partnering with Car Washes

• Diverse Customer Base – Our systems have been

• Choice of Industry Leaders – The majority of the

• Commitment to New Technology – We lead the

• Dedicated Support Team – Our commitment to

installed at over 3,000 sites, representing a wide cross-section of the car wash industry.

way with new products that allow you to manage and market your businesses more effectively. Our recent breakthroughs include The SiteWatch® Automatic Recharge Module® (ARM®) for selling monthly passes, the FastPass® wireless acceptance system, and SiteWatch SmartCodes™ for accepting mobile phone barcodes.

• Investing In Your Future – DRB Systems combines

extensive experience in the car wash industry with a relentless drive to explore new technologies that will contribute to the success of our customers. Over 50 of our team members have been with us for more than 10 years; so they have a deep understanding of car washing. Working with the best and brightest new talent, they help keep our products – and our customers – on the cutting edge.

50 largest car wash chains are our customers; as are over 75% of the past 25 ICA presidents.

customers goes far beyond selling products Working out of our 45,000 square foot headquarters in Ohio, the 68 highly-trained technicians on our support team are dedicated to helping customers resolve technical issues quickly. A good indication of this commitment is our 24/7 phone support.

ance Proven Perform in the Real World

SiteWatch is used by quality operators around the country, including: • Seven Flags Car Washes, Vallejo, California • The Car Wash Barn, Killeen, Texas • Triple Play Car Wash, Attleboro, Massachusetts • Rainstorm Car Washes, Forsyth, Illinois • Cactus Car Washes, Charleston, South Carolina Contact DRB Systems at 1-800-336-6338, or visit www.drbsystems.com for more information.

U S I N G T E C H N O L O G Y T O E N H A N C E Y O U R C U S T O M E R’ S E X P E R I E N C E

800-336-6338 Green, Ohio / www.drbsystems.com © Copyright 2013. All rights reserved DRB Systems, Inc.


TAXES

W H E N A R E Y O U R E Q U I R E D TO F I L E A G I F T TA X R E T U R N ? By Norm Blieden Are you planning to give sizeable gifts to family members? Due to generous provisions in the tax code, you may not owe any federal gift tax, but you still might be required to a file a gift tax return. Here’s a quick review of the basic rules. Despite a common misconception, gift tax is paid by the gift giver, or “donor,” not the recipient, or “donee.” This applies to gifts of cash, property, and other interests. For 2013 and thereafter, the top gift tax rate is permanently set at 40%, a slight increase from 35% in 2012. However, you may be able to avoid gift tax liability due to two key tax breaks.

ARE YOU PLANNING TO GIVE SIZEABLE GIFTS TO FAMILY MEMBERS? DUE TO GENEROUS PROVISIONS IN THE TAX CODE, YOU MAY NOT OWE ANY FEDERAL GIFT TAX, BUT YOU STILL MIGHT BE REQUIRED TO A FILE A GIFT TAX RETURN. ~Norm Blieden

• Annual gift tax exclusion. Under the exclusion, annual gifts to a donee valued up to $14,000 in 2014 (the same as in 2013) are completely exempt from gift tax. Note that the exclusion is available for gifts to as many recipients as you choose. • Lifetime gift tax exclusion. In addition to any amount covered by the annual gift tax exclusion, you can benefit from a lifetime gift tax exemption of $5 million, inflation-indexed to $5.34 million in 2014. However, this exemption is unified with the federal estate tax exemption, so amounts used for gifts will erode the tax shelter available for bequests from your estate. Generally, you don’t have to file a gift tax return, Form 709, for gifts covered by the annual exclusion, but you must file this form if you tap into the lifetime exemption amount. Also, when you make a “split gift” with your spouse, the annual exclusion amount is doubled to $28,000 per donee, but a gift tax return is required even if you don’t owe any tax. Furthermore, if you give a gift of a “future interest,” such as a transfer of assets to a trust, a gift tax return must be filed in any event. In some cases, you might file a gift tax return when you’re not legally required to. This starts the statute of limitations running on the time the IRS will have to challenge the valuation of the gift. It also discloses the gift for other purposes. The deadline for filing federal gift tax returns is the same as the one for income tax returns. Thus, if you gave more than $14,000 to a donee in 2013, you have until April 15, 2014, to file the return, but you can apply for an automatic six-month filing extension. Caution: This extension is for filing only and not payment of any gift tax that is owed.

HEALTH CARE REFORM DEADLINE EXTENDED AGAIN

On February 10, 2014, the Treasury Department issued rules that will allow certain businesses to delay for one more year the requirement to provide minimum, affordable health insurance to their workers. Businesses with 50 to 99 employees now have until January 1, 2016, to provide health insurance for employees or face penalties. In order to qualify for this extension, employers must certify that they have not laid off employees in order to come under the 100 employee threshold. Large employers—those with 100 or more employees—must still comply with the health insurance mandate by January 1, 2015.

TAXES AND RETIREMENT ACCOUNTS

Retirement accounts grow tax-deferred until you need the funds. However, in most cases your money cannot remain in these accounts forever. The IRS has rules that dictate when and how much you must withdraw from your retirement accounts. • Required withdrawals. The amount you must withdraw each year is called your required minimum distribution (RMD). You can withdraw more than the required minimum distribution from your retirement accounts, but if you fail to take at least the required minimum on time, you face a severe 50% penalty. These rules apply to traditional IRAs and qualified retirement plans, but they do not apply to Roth IRAs during the owner’s lifetime. Continued on page 8...

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DETAILING

D E TA I L I N G AT T H E C A R WA S H by Prentice St. Clair Having been a member of WCA over the years, I have had the pleasure of attending many a WCA Car Wash Show, meeting dozens of car wash owners while offering presentations about “detailing at a car wash”. In this article, I would like to offer some observations on car wash detailing from the perspective of a professional full-service detailer and consultant to the industry. I sincerely hope that you find these “one man’s opinions” to be helpful.

EXPRESS VERSUS FULL-SERVICE DETAILING

A HIGHLY EFFICIENT AND EFFECTIVE DETAIL CENTER, WHETHER IT BE A FULL-SERVICE ENCLOSED DETAIL BAY OR AN EXPRESS AREA UNDER A CANOPY, WILL HAVE A TIDY, CLEAN,

A common challenge at the car wash is the assignment of the vehicle to the appropriate detailing service. For example, the guest advisor might be over-zealous in selling express detailing to customers who are in vehicles that are in too poor of a condition to qualify for the light maintenance cleaning that is supposed to occur in express detailing. This leads to a number of problems. Customers can be dissatisfied because the express service did not solve the problem, even though the problem is more appropriately solved by full-service detailing. Detailing technicians can be unfairly tasked with jobs that do not fit into the procedural protocol that they have been taught. Detailing technicians can be unduly stressed to perform jobs that cannot reasonably be completed in the expected timeframes defined by express detailing. The solution to this challenge is to ensure that there are clear and reasonable definitions for vehicle conditions that are appropriate for the express menu items that are offered. This is not necessarily easy, but it can be accomplished with a dedicated effort that includes educating the service advisors, management, the detailing technicians, and, yes, the customer. Moreover, for the car wash that offers both express (maintenance) detailing and fullservice (reconditioning) detailing, it is critical to have clear and published distinctions between the two services.

DO YOUR CUSTOMERS HAVE PINWHEEL EYES?

DETAIL CENTER SHOULD

More often than not, I have noticed that the detailing portion of menu at car washes tend to be overly complicated. The customer is left confused and then often chooses the least expensive package. It is also difficult for the service advisors to sell a complicated menu because there are too many factors to take into consideration when determining the appropriate package for the vehicle at hand. Clients who I have advised to significantly simplify the detailing menu have consistently reported benefits from doing so, including improved revenue, easier sales, happier customers, and more efficient technicians.

LOOK AS CLEAN AS

HOW DOES YOUR DETAIL CENTER LOOK?

AND ORGANIZED APPEARANCE. THE

THE DETAILED CARS IT PRODUCES. ~Prentice St. Clair

A highly efficient and effective detail center, whether it be a full-service enclosed detail bay or an express area under a canopy, will have a tidy, clean, and organized appearance. The detail center should look as clean as the detailed cars it produces. Moreover, detailing technicians who are properly trained and equipped have the highest per-hour revenue producing capability. As they perform their work, they also have the customer-confidence-boosting appearance of a well-oiled, high-quality production line.

HOW IS THIS A “SERVICE”?

A common “express” service is mat cleaning. However, it is appalling to me that “cleaned” but still damp mats are placed in the trunk of the customer’s vehicle. I don’t understand how this can be called a “service.” It is more like an inconvenience for the customer, who must remember to remove the mats upon returning home; let them dry; and then re-install them into the vehicle. Should the customer forget about the damp mats, they become moldy and smelly within 24 hours. In the meantime, the bare carpets in the car are exposed to foot traffic instead of being protected by the mats. Finally, re-installing mats is not the same as tying shoes--many people have never done it. Some mat installations can be down-right tricky.

Continued on page 14...

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The Tunnel Experts

It’s easy to find out why! 1-800-327-8723 or SonnysDirect.com

SONNYS

Innovation

INNOVATE or DIE

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SONNY’S New FoamGlo™ Lighted Foam Applicators Our clients asked for an affordable way to add customer appealing LED lights inside the wash process to increase satisfaction and unmistakably distinguish premium pay wax service... more

1 5 8

SONNY’S New Soft-Drop™ Conveyor Exit Our clients asked us for a quieter exit end trap door that would last longer with less maintenance and provide a smoother, more customer friendly transition of the car off the conveyor...more

SONNY’S New Poodle Brush™ PLUS

Our clients, in love with the superior wheel cleaning capabilities of our Poodle Brush, asked us for a re-buildable version similar to our Bison Brush... more

AutoPilot’s New Chemical Concierge™ Our clients asked for a compact and precise 106 7/8 chemical distribution panel that was easy to set-up and simple to adjust in order to control chemical consumption... more

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Pivots 82°

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SONNY’S New True-Track™ 4:2 Wheel Roller Our clients asked us for a direct-connect self-aligning mid profile roller that would improve vehicle tracking while reducing wear on chain and sprockets... more

Our clients asked us for the ability to fully retract a Buff-n-Dry Wrap-Around so that it would not touch the sides of even the widest vehicle... more

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SONNY’S New Bolt-on Pivoting RAIN™ Bar Our clients asked us for a high impact rinse arch that could remove large volumes of foamed detergent with miserly water consumption... more

AutoPilot’s New Truck Bed Concierge™

SONNY’S New Buff-n-Dry™ Wrap Header

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Our clients asked us to extend the connectivity of our immensely popular Truck Bed Concierge with standard interface programming for DRB Systems and ICS controllers... more

Read more online at SonnysDirect.com 800-327-8723 SonnysDirect.com

Sonny’s New Bolt-on Pivoting Applicator Arch Our clients asked us for greater accuracy and more complete coverage of the pre-soak application capable of a complete “white-out”... more

AutoPilot’s New ProfitPilot 13.2 Our clients asked us for streamlined prepaid and recurring payment management and the new ProfitPilot 13.2 release delivers this and... more


AB 1387

WCA CONTINUES A D V O C A C Y E F F O RT S By Ross Hutchings, CAE

AB 1387 SIGN THE PETITION TODAY HELP US REDUCE THE CAR WASH BOND WCA IS ASKING ALL CALIFORNIA CAR WASH OPERATORS TO GO TO WWW.WCWA.ORG AND SIGN THE ELECTRONIC CALIFORNIA CAR WASH WORKER PROTECTION AND BOND REVISION PETITION.

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The Western Carwash Association (WCA) has launched an aggressive advocacy campaign. Since the passage and implementation of AB 1387, which raised Surety Bonds for California Car Washes 1000% (by $135,000!), WCA has been working aggressively on behalf of the industry. Hiring governmental advocate firm Political Solutions, WCA has developed a comprehensive strategy plan to roll back the bond. The argument used to raise the fees was protection of car wash workers. Together with Political Solutions, WCA has met with labor groups and have developed better ways to protect workers by targeting car wash operators who break the law while protecting good, legitimate car washes. To help us in this effort, WCA is asking ALL California car wash operators to do the following: • Go to www.wcwa.org and sign the electronic California Car Wash Worker Protection and Bond Revision petition. • Go to http://findyourrep.legislature.ca.gov/, find your Senator and Representative. Call them to let them know you are their constituent and how this increased bond is affecting your business. • Go to www.wcwa.org/donate and donate (suggested minimum amount $200). WCA is incurring tremendous cost to fight this and other efforts on behalf of the entire car wash industry. We need your financial support! If you have any questions, please call Western Carwash Association at (800) 344-9274 or email info@wcwa.org.

When Are You Required to File a Gift Tax Return? Continued from page 4...

In most cases, you must begin withdrawing money from your retirement accounts as follows: • Your first withdrawal can either be taken in the year you turn age 70½, or it can be postponed until April 1 of the following year. • Your second withdrawal must be taken by December 31 of the year after you turn 70½. • In each subsequent year, you must withdraw at least the required minimum amount by December 31. If you’re still working at age 70½ and you own less than 5% of the company you work for, you can wait until you retire to begin taking distributions from qualified plans, such as 401(k)s. This exception does not apply to traditional IRAs. • Income tax planning. Your retirement fund trustee must tell the IRS whether you are required to take a minimum distribution. Because all or part of your distribution may be taxable income, it is important to include RMDs in your tax planning. • Estate planning. Retirement accounts are subject to estate tax as well as income tax. If you die owning an IRA or 401(k), your plan will be considered an asset in your estate and, like every other asset, it could be subject to estate tax. And since most retirement plans contain untaxed income, your plan could also be hit with income tax when it is distributed to your heirs. Unless you want the tax man to end up with a large chunk of any retirement funds left in your estate, planning is essential. This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without first determining its application to your specific situation. Norm provides monthly accounting/bookkeeping and payroll services to businesses. For further details on any article, please contact us. Norman A Blieden, CPA at (626) 440-9511.


Experience the ICS Advantage ICS serves all segments of the car wash industry: tunnel conveyors, in-bay petroleum and self-serve. We are passionate about delivering the most comprehensive solutions to empower the car wash owner-operator with the controls to streamline their business to achieve maximized profits. We provide a wide range of products and services including: n Point-of-Sale management systems n Integrated software and control systems n Automated payment terminals n Club and fleet management tools

www.ICScarwashsystems.com 800.642.9396


EXPRESS EXTERIOR CAR WASH

T H E I M P O R TA N C E O F BUILDING A TUNNEL CAR WA S H — W H E R E E R R O R S A R E MADE, SOME ARE MAJOR, SOME ARE CRITICAL By Harvey M. Miller, Car Wash Consultant Developers, investors and car wash owners are building Car Washes all over the Country. The vast majority of them are Express Exterior models. Some of them are building on properties or areas that they should not, some are making errors in designing, building or operating. Unfortunately, some of these developments end up in foreclosure, bankruptcy or with the operation just closing. There are many issues that must be used in determining if a property is feasible, large enough and if the area and community will support this type of business. The following are a list of variables and issues that should be included in determining if you should go forward with building a car wash:

THE EXPRESS EXTERIOR CAR WASHING MODEL IS THE MOST EXCITING AND LUCRATIVE OPERATION I HAVE WITNESSED IN THE 57 YEARS I HAVE BEEN IN THE INDUSTRY. IF IT’S DONE PROPERLY, WITH THE T’S CROSSED AND I’S DOTTED, IT COULD BECOME AN EXTREMELY SUCCESSFUL BUSINESS. IF IT’S NOT DONE CORRECTLY AND IF VOLUME IS NOT REACHED, IT COULD FAIL.

1. Site Selection, Analysis and Layouts are critical. It could be the difference of high or low wash volume or being successful. Included in your check list should be: • Current Demographics, 1-3-5 mile radius, current zoning, what entitlements are required? • Property size and actual dimensions to determine possible length of tunnel and space available for self serve vacuum pads. • Visibility/exposure, Traffic Count and Speed, Ingress/Egress, adjacent surroundings and communities, competing car washes in a three mile radius, cost or rental of property, reviewing Preliminary Title Report to determine recorded underground easements. • Utility and Sewer locations, Off Site improvement requirements, property environmentally clean. • Viable for Express Exterior car wash and is there a real need for this type of business in that location and community. 2. Proper Architect. An architect may be able to design a large office building but cannot properly design and layout a car wash development. It’s important to retain an architect who understands what you want, what you require and is qualified to comply. Someone who is also open minded. 3. If it’s out of sight, it’s out of mind. Building in the back of something usually does not generate high volume. 4. In many cases, Demographics of the area are not used or are overlooked during Site Selection. This is absolutely #1 on my check list. The Demographic report will give you the required information about the local area and community. 5. Traffic Counts are sometimes overstated and not properly analyzed. This has some developers and builders in trouble. Service roads, center medians, one way streets, high speeds and close proximity to freeway ramps have negatives and have to be considered with traffic counts. 6. Competition often is not part of the Site Selection and Analysis or not considered in determining if the area could support another car wash. I often hear “I have a better location; I’m on the corner; I’m on the right side of the road, etc.” There’s only a certain amount of population in an area to support existing car washes. The population and traffic counts have to be divided by existing facilities and the proposed site. Many new car washes have been built within a mile or so of good comparable competition. This is certainly not prudent and will make it difficult to generate high volume and in some cases, be at risk of surviving. Remember, existing facilities are not going away.

~Harvey M. Miller Continued on page 16...

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Focusing on First Aid Continued from page 2...

Thrive with

2013–2014 OFFICERS AND DIRECTORS

Typically the medical provider will make the determination as to whether the injury meets the requirements of first aid. The medical provider is obligated to prepare and submit a “Doctor’s First Report” to the insurance carrier regardless if the injury qualifies as first aid.  If the treatment qualifies as first aid the medical provider should indicate that on the report.  It’s essential for employers to establish a working relationship with a medical provider. Although the first aid determination is ultimately the medical provider’s call, the employer can work with the medical provider to prevent miscommunication or confusion regarding the process. It is also quite possible that a lay person at the employer’s location could administer first aid care.  When that occurs an employer must keep in mind the severity of the injury and the scope of treatment needed to ensure that a claim truly qualifies as a first aid. Treatment beyond first aid even by a layperson would still be considered medical treatment and not first aid.   

PRESIDENT

DEALING WITH FIRST AID

WCA Brad Hooper Rossmoor Car Wash, Los Alamitos, CA

VICE PRESIDENT

Jason Johnson Quick Quack Carwash, Carmichael, CA

SECRETARY/TREASURER

Jerry Nix Speedi Car Wash Inc., Tacoma, WA

IMMEDIATE PAST PRESIDENT Chris Buscaglia Zoom Car Wash, Stockton, CA

BOARD OF DIRECTORS

Darrin Baum Zep, Inc., El Dorado Hills, CA Doug Christ Hi Performance Car Wash, Centennial, CO Mark Goddard Supersonic Car Wash, Ogden, UT Scott Horner Terrible Herbst, Las Vegas, NV Herschel Kilgore H2Go Express Carwash, Mission Viejo, CA Frank Phalen Zipp, Inc., Santa Barbara, CA Sander Romick HWB Car Wash, Inc., Burbank, CA

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Payment: The law allows employers to establish first aid programs for the purpose of reducing the administrative burden and cost of the most minor of injuries. Employers can pay the medical costs of first aid treatment directly out of pocket, thereby keeping those claims off their experience modification.  This can be a good strategy of controlling your insurance costs, particularly for employers in which first aid injuries are prevalent.  On the other hand, some employers prefer to have their insurance company pay for all claims including first aid treatment if they don’t anticipate it will significantly impact their experience modification or insurance costs.   Claim Reporting: Although employers are not required to provide employees a DWC-1 claim form for a first aid injury, many insurance carriers prefer that first aid claims still be reported to the carrier for record purposes.  Most carriers allow employers to report an injury as “first aid” or “record only”.  The carrier would then set up a file but would not issue any payments.  If the carrier receives a Doctor’s First Report without prior report from the employer, the carrier should contact the employer to confirm and redirect billing to the employer for payment if necessary.    

Here are a few additional tips in dealing with first aid claims: • If paying for first aid treatment out of pocket, consider forwarding the invoice to a bill review service prior to payment to confirm that charges are in line with the workers’ compensation fee schedule. • Accident investigation forms should be completed. Even though this injury was minor, next time may be a different story. • Refer the injured employee to a provider in your carrier’s Medical Network Provider if possible. If you have any questions regarding first aid injuries in workers’ compensation, contact your Wells Fargo Insurance Services Workers’ Compensation Claims Consultant for guidance.

FREQUENTLY ASKED QUESTIONS

Q: What if a physician or other licensed health care professional recommends medical treatment but the employee does not follow the recommendation? A: If a physician or other licensed health care professional recommends medical treatment, you should encourage the injured or ill employee to follow that recommendation. However, when an employee chooses not to follow the recommendation the case will not be considered a first aid.  Q: What if we have a physician or health care provider on-site?  Do we have to report an injury claim to the insurance carrier?  A: Some very large employers have onsite physicians or health care providers, particularly in manufacturing settings.  This does not change the claim reporting requirements to the insurance carrier or recording requirements for Cal/OSHA.   Copyright 2009 © Western Carwash Insurance Agency. All Rights Reserved.


Detailing at the Carwash Continued from page 6...

What’s the solution? Find a way to effectively clean and dry mats so that they can be re-installed before returning the vehicle to the customer. Better yet, clean and dry the mats without even removing them from the car! With the right equipment (e.g., dry vapor steam) and techniques, this service is quite achievable.

BECOME INVOLVED IN YOUR (OTHER) INDUSTRY!

Your carwash insurance experience can be hassle free. You don't have to spend hours comparing coverage options. You don't have to stumble through confusing paperwork. You can get a specialized insurance policy custom fit for your carwash business with Western Carwash Insurance Agency (WCIA).

Coverage Options: t Carwash Building & Equipment t Commercial Liability t Commercial Auto t Umbrella t Garagekeepers Legal Liability t Personal Property t Employee Dishonesty

t Employment Practices Liability t Business Income t Equipment Breakdown t Money & Securities t Workers' Compensation t Surety Bonds and much more!

You already know the value of membership in a trade association such as WCA. If you currently offer detailing (in any form) at your location, I encourage you to also join the International Detailing Association, which has benefits specifically for the detailing side of the business. You can check out those benefits at www.the-ida.com.

SUMMARY

If any of these observations resonate with you, please consider taking the steps to improve or remedy any challenges that you may be having in your car wash detailing operation. If I may be of assistance, please feel free to call. Prentice St. Clair is the president of Detail in Progress, Inc., which has provided consulting, training, and informational products to the automotive detailing and reconditioning industry since 1998. He can be reached at (619) 701-1100 or prentice@detailinprogress.com.

W E S T E R N C A R W A S H A S S O C I AT I O N

EXPRESS

The sooner you call, the sooner you can enjoy these benefits. Ask for Brandi at (866) 415-8663. For all of your car wash business insurance needs, contact the car wash business insurance one stop shop-The Western Carwash Insurance Agency.

W E W O U L D L I K E TO HEAR FROM YOU!

Brandi Barth Insurance Placement Specialist email: brandi.barth@wellsfargo.com http://www.westerncarwash.com/

Have an interesting article or industry related news to share? If so, we would love to hear from you. Please send in articles (5001000 words) along with a brief author bio and picture to Michele Holcomb at micheleh@wcwa.org.

CA DOI Lic. #OB48048

540699_Western.indd 1

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8/3/11 2:01:03 PM


MacNeil is setting the bar WHY JOHN PINSON CHOSE MACNEIL “MacNeil gives us a great, safe wash that saves us money and keeps our customers coming back.” John Pinson

Director of Operations, Palms Car Wash, Austin, TX, on his new 205' MacNeil conveyor, with wheel and tire add-ons

JOHN’S TAKE: • MacNeil is “the safest” • MacNeil “saves us labor and generates revenue” • MacNeil “gets the spots that other car washes don’t get” See for yourself what MacNeil is doing for John. What can we do for your wash? Visit www.macneilwash.com/johnpinson

Everyone wants a MacNeil. www.macneilwash.com

A Ryko Solutions Company


THE IMPORTANCE OF BUILDING A TUNNEL CAR WASH Continued from page 10...

7. Some Developers and Investors are investing $4-$6 million on Express Exterior car washes. This is a mistake. I believe the total cost should stay under $3 million including the land. If you build an Express Exterior car wash for over $3 million, it will not wash any more vehicles than if the cost was under $3 million and it may not justify your investment. 8. The name of the game with Express Exterior washing is simply “volume”. If you can’t project high volume, it should not be built. 9. Prepare Projection Statements before you commit. If you are not experienced in preparing these statements, retain someone who has the experience and does not have a conflict of interest. You will want these statements and so will your lenders. 10. Equipment and Computer Systems. To achieve quality (which is a must) and high volume with a minimum of labor, it is extremely important to purchase proper equipment that washes and dries effectively. Vacuum equipment with required horsepower that allows for maximum use is just as essential. To reach all your goals, an effective computer system with advanced technology is a necessity. As mentioned, the Express Exterior model works extremely well with high volume. The only real variable cost are chemicals and a small portion of utilities. The balance of expenses are fixed. Approximately 80% + of increased wash volume and income go to the bottom line. The more volume, the higher net operating income and higher net percentage of the gross income. The Express Exterior car washing model is the most exciting and lucrative operation I have witnessed in the 57 years I have been in the industry. If it’s done properly, with the T’s crossed and I’s dotted, it could become an extremely successful business. If it’s not done correctly and if volume is not reached, it could fail. For any questions or clarification regarding this article, please call Harvey Miller at (949) 230-3623 or email carwashconslt@aol.com.

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WCA

800-422-2866

Ph: 951-277-5180 Fax: 951-277-5170 sales@laigroup.com


INDUSTRY NEWS ZEP VEHICLE CARE INC. ANNOUNCES ITS NEWEST REVENUE P R O G R A M : A R M O R A L L P R O F E S S I O N A L ® E X T R E M E S H I N E WA X ™ Atlanta, GA and Eagan, MN–March 31, 2014 Zep Vehicle Care, a division of Zep Inc. (NYSE: ZEP), and the largest provider of carwash products and chemistry to the professional carwash industry, announced today at the International Car Wash Association’s Annual Car Wash Show in Chicago, the introduction of Armor All Professional® Extreme Shine Wax™. This exciting new revenue program provides car wash operators with incremental add-on and top wash package revenue opportunities, supported by the #1 auto appearance brand. Armor All Professional® Extreme Shine Wax™ is formulated to provide superior performance and features Carnauba wax, plus special polymer blends, to create extreme shine consumers will notice. Additional features include great theatre with high foam show, vibrant purple color and grape fragrance. Zep Vehicle Care is supporting the launch with merchandising and multiple equipment application options, some of which will be on display on the ICA Car Wash Show floor this week. Darrin Baum, VP General Manager of Zep Vehicle Care Inc. commented “This exciting and powerful addition to our line allows our customers to offer the ultimate in vehicle shine and protection by bundling new Armor All Professional® Extreme Shine Wax™ with our popular Rain-X® Complete Surface Protectant or Armor All Professional® Body Shield in a new top wash package, thus increasing the value and sales of their premium wash package. We welcome all operators to visit us on the show floor to see the product in action.”

ABOUT ZEP VEHICLE CARE

Zep Vehicle Care is the largest provider of carwash products and chemistry to the professional carwash industry, representing and marketing the most recognized and trusted consumer brands, including Armor All Professional™, Blue Coral®, Rain-X® and Black Magic®. With the largest network of service providers, unparalleled marketing and revenue generation programs, and the largest Research & Development team in the industry, we bring THE MOST to your carwash business

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WCA


BIG DOG AIR Exceed their expectation

• $1.17 per SWIPE…NET (or Set it Higher) • KEEP 100% of the REVENUE • DIRECT DEPOSIT to YOUR ACCOUNT • Eliminates Theft – Eliminates Collection • “Real-Time” On-line Reporting • Credit / Debit / Cashless • WIRELESS – simple…NO wires • Free Air Check – Attracts more customers • High-output-continuous-use (HOCU) industrial compressor • 90 psi Maximum tire inflation Pressure • Installation Instructions: BOLT IT DOWN & ADD ELECTRICITY

Factory Direct Prices —

Factory Direct Service —

We’re a phone call away Model: Big Dog Air w/e-Port • $2,000 Big Dog Air w/coin only • $1,850

www.fragramatics.com

Call Steve at

800-643-1574


ASK THE EXPERTS!

950 Glenn Drive, Folsom, CA 95670 800.344.9274 | 916.932.2209 fax www.wcwa.org

THE CAR WASH LOUNGE WCA’S DISCUSSION FORUM FOR ALL CAR WASH PROFESSIONALS.

Do you have questions about OSHA requirements, or how to run a car wash business? Do you need information on taxes, good business practices or have burning questions? Submit your questions in “The Car Wash Lounge” located at wcwa.org under the Membership tab. We’ll publish your questions in the next issue of Express.

One Call... for all your parts needs. 1.800.282.5183 **Part numbers and manufacturer’s names are listed for reference only. RDM re-manufacturers, rebuilds and resells electronic equipment by various equipment manufacturers but is not affiliated with or certified by these companies.


AB 1387 SIGN THE PETITION TODAY HELP US REDUCE THE CAR WASH BOND

How You Can Help With last year’s passage of California bill AB 1387, California car washes and detail shops had their surety bond requirement increased by 1000% beginning January 1, 2014. California car wash operators are required to post a $150,000 surety bond (previous surety bond amount was $15,000), unless the wash is covered by a collective bargaining agreement. Car washes are struggling to qualify and pay for this increased bond. Surety bonds are in place to protect workers’ wages in the event the car wash goes out of business. However, there are several other methods to collect these wages and surety bonds have been seldom used. WCA, together with our lobbying firm Political Solutions (www.politicalsolutions.com), has researched and proposed three different scenarios that would protect workers and punish the law breakers WITHOUT hurting car washes that are operating legally. Even with the tremendous efforts by our team, we cannot do it alone—WCA needs your help! We are calling upon ALL California car wash operators (regardless of whether you are a member or not) to unite as an industry to make lawmakers understand the impact that the new increase is having on our businesses. We are asking EVERYONE to do the following: 1. PETITION – Sign the petition! The more signatures we have the more we can show the legislature our dedication to resolving the bond issue. Go to www.wcwa.org and click on the link to sign the iPetition. Get everyone in your family and friends to sign this petition—they don’t necessarily have to work for the industry, they can sign it as “Friends of the Carwash Industry.” 2. MAKE CONTACT – Contact your California State Assembly and State Representatives. Go to www. findyourrep.ca.gov/ to find your representative. Ask them to encourage AB 1387’s author, Assemblyman Roger Hernandez, to work with the Western Carwash Association on a bill to reduce the surety bond amount while increasing penalties for those breaking the law. 3. DONATE – This fight is costly but if we all ban together, we can afford to fight this battle. Please fill out the attached card and send with the pre-paid envelope or donate online: www.wcwa.org/donate


950 Glenn Drive, Folsom, CA 95630 800.344.9274 | 916.932.2209 fax www.wcwa.org

W E S T E R N C A RWA S H A S S O C I AT I O N

2014

n Car Wash Show r e t s e W

Education

T he W

Industry

Networking

inning Combination

KEYNOTE SPEAKER DAN QUIGGLE

Staff Aide for Former President Ronald Reagan

Leading with Purpose, Direction and Optimism–The Reagan Way

DON’T MISS THE ONLY CARWASH SHOW IN LAS VEGAS THIS YEAR!

OCTOBER 28-30

LAS VEGAS

VISIT WWW.WCWA.ORG FOR MORE INFORMATION

2014 March/April Express  

2014 March/April Express with wrap

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