September 2013

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Volume 43 Issue 8 • September 2013 Operator The The MSBOA Office receives many calls inquiring how to select the safest school bus stop. It is a difficult question to answer because every selection involves a myriad of con- cerns including safety issues and fairness to other riders, not to mention the political implications. The standard answer we usually give out is to seek guidance from the school district as per their transportation policy. Unfortu- nately it is not a very definitive answer for many callers because their transportation policy is vague. Many transportation professionals have heard from the caller that tries to claim they “heard” certain stops are against the law. MN Statute 169.443 deals with school bus stops, but it pertains to the use of the stop arms and signals. It does not give any guidance on what makes a stop unsafe. MN Rule 7470.1000 covers a little bit more and states in part that: All buses must load and unload in the right lane of the roadway, at pupil stops on bus routes approved by the authorized person. Loading or unloading in a designat- ed turn lane or in a lane immediately adjacent to a des- ignated turn lane is prohibited unless the turn lane is a designated school bus stop at which pupils are not required to cross the road. Under these circumstances, the bus must stop at the extreme right-hand side of the turn lane and the eight-light system and stop arm should not be used. Loading and unloading pupils within an intersection is prohibited. Obviously, a school bus stop that does not require the chil- dren to cross the road is safest. However, we know that it is not always possible. Generally speaking, it is easiest for a young child to negotiate a mid-block stop. This is due to that fact that the bus, in theory, can control traffic in all directions. Placing a school bus stop at an already signalized intersec- tion causes confusion. Which traffic control device should the motoring public respond to? On the other hand, in areas with heavy traffic a mid-block stop encourages a child to jay- walk across the street and be exposed to traffic that may not stop. It seems that there is always a trade off when select- ing a school bus stop. The stop selected should minimize the risk and exposure to the child when they are loading and unloading. The follow- ing checklist may help to make an informed decision regard- ing school bus stop placement: 1. Examine potential safety issues at the waiting/loading zone. 2. What is the student’s access to the stop? Is there a sidewalk? 3. Is there adequate visibility at the stop location for passing motorists? There should be 500 feet visibility in either direction for other vehicles. 4. Is there adequate distance for the activation of the school bus 8-way warning lights and stop sign? 5. Is the need for backing up the school bus minimized or eliminated? 6. Is the route designed to avoid travel into areas terminating at cul-de-sacs or dead ends? 7. Is the need for multi-stops within developments and heavy traffic areas minimized? Education of the parents involved with their local school bus stop should not be overlooked. If they understand the process involved in selecting or rejecting a school bus stop, the school district and the bus company may be able to avoid some of the political ill will that can arise out of the appeal process. If the school district has a policy in place regarding the selection of school bus stops, it is easier to defend to parents who make complaints that the school bus stop is not close enough to their home. Some sample expla- nations could be as follows: The bus drives right past my house. Why can't it stop at my house? A high frequency of stops makes the motoring public impatient. This results in people driving around the bus, a dangerous situation. It also delays the bus by increasing the number of stops and makes the student ride time longer. Centralized stops within a housing development help minimize these issues. Continued on Page 5. Selecting a School Bus Stop By Shelly Jonas

description

School Bus Stops Unauthorized Entry Law Changes Driver Fitness Financial Statements

Transcript of September 2013

Page 1: September 2013

Volume 43 Issue 8 • September 2013

OperatorThe

The MSBOA Office receives many calls inquiring how toselect the safest school bus stop. It is a difficult question toanswer because every selection involves a myriad of con-cerns including safety issues and fairness to other riders,not to mention the political implications. The standardanswer we usually give out is to seek guidance from theschool district as per their transportation policy. Unfortu-nately it is not a very definitive answer for many callersbecause their transportation policy is vague.

Many transportation professionals have heard from thecaller that tries to claim they “heard” certain stops areagainst the law. MN Statute 169.443 deals with school busstops, but it pertains to the use of the stop arms and signals.It does not give any guidance on what makes a stop unsafe.MN Rule 7470.1000 covers a little bit more and states in partthat:

All buses must load and unload in the right lane of theroadway, at pupil stops on bus routes approved by theauthorized person. Loading or unloading in a designat-ed turn lane or in a lane immediately adjacent to a des-ignated turn lane is prohibited unless the turn lane is adesignated school bus stop at which pupils are notrequired to cross the road. Under these circumstances,the bus must stop at the extreme right-hand side of theturn lane and the eight-light system and stop armshould not be used. Loading and unloading pupilswithin an intersection is prohibited.

Obviously, a school bus stop that does not require the chil-dren to cross the road is safest. However, we know that it isnot always possible. Generally speaking, it is easiest for ayoung child to negotiate a mid-block stop. This is due to thatfact that the bus, in theory, can control traffic in all directions.Placing a school bus stop at an already signalized intersec-tion causes confusion. Which traffic control device shouldthe motoring public respond to? On the other hand, in areaswith heavy traffic a mid-block stop encourages a child to jay-walk across the street and be exposed to traffic that may notstop. It seems that there is always a trade off when select-ing a school bus stop.

The stop selected should minimize the risk and exposure tothe child when they are loading and unloading. The follow-ing checklist may help to make an informed decision regard-ing school bus stop placement:

1. Examine potential safety issues at the waiting/loading zone.

2. What is the student’s access to the stop? Is there a sidewalk?

3. Is there adequate visibility at the stop location for passing motorists? There should be 500 feet visibility in either direction for other vehicles.

4. Is there adequate distance for the activation of the school bus 8-way warning lights and stop sign?

5. Is the need for backing up the school bus minimized or eliminated?

6. Is the route designed to avoid travel into areas terminating at cul-de-sacs or dead ends?

7. Is the need for multi-stops within developments and heavy traffic areas minimized?

Education of the parents involved with their local school busstop should not be overlooked. If they understand theprocess involved in selecting or rejecting a school bus stop,the school district and the bus company may be able toavoid some of the political ill will that can arise out of theappeal process. If the school district has a policy in placeregarding the selection of school bus stops, it is easier todefend to parents who make complaints that the school busstop is not close enough to their home. Some sample expla-nations could be as follows:

The bus drives right past my house. Why can't it stop atmy house?A high frequency of stops makes the motoring public impatient. Thisresults in people driving around the bus, a dangerous situation. It alsodelays the bus by increasing the number of stops and makes the studentride time longer. Centralized stops within a housing development helpminimize these issues.

Continued on Page 5.

Selecting a School Bus Stop By Shelly Jonas

Page 2: September 2013

Wow, where has the Summer gone? Another start of a new school yearis upon us. August is where you try to squeeze out the last few days of avacation yet try to get all of the prep work done for the first day of school.

Most of you contractors have been a part of your school district for manyyears. You know the bus routes like the back of your hand. You know

most of the families by name. You add the names of the new students to the bus list and remove the one'sof those who have graduated. The buses are polished and safety checked and you are looking forwardto the first morning route or that first extra curricular trip. This is something that you have done for yearsand you give your school district a good reliable service for their dollar.

I have often thought about the value of the hometown service that is given to these school districts. Yougo the extra mile for them to ensure safety and donate services up and above your contract without hes-itating or thinking twice about it. I remember reading an article in a national publication some years agothat stated that the days of the Mom and Pop hometown bus companies were on their way out and wouldnot survive. That there would only be big box operations to try and save the school districts a quick dol-lar. Sadly as the school districts were hiring consultants it appeared as if that was happening. But thatdoesn't seem to be the case anymore. Some districts found out the hard way that they no longer had thesame trusted reliable service that they had in the past. Entire bus routes that had not been filled, bus stoppick-ups that have been missed, unreliable buses and a poor safety inspection history. They found outthat they wanted their reliable trusted bus service back.

The point that I am trying to make is this. Don't be afraid to let your district know what you have done forthem in the past and will continue to do for them in the future. Tell them about your safety and inspectionhistory and your reliability. Let them know about your investment in the school district and the communi-ty. If you don't tell them, no one will. BE PROUD OF YOUR OPERATION AND LET IT SHOW!

If any of you feel that your school district has misinformation about school transportation in Minnesota,don't be afraid to contact our MSBOA attorney, Tom Revnew, on the hotline for your free initial consulta-tion. He will help you get the correct information that is needed.

So I ask you, "What is the value of your hometown service?"

Have a safe year!

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BBOARDOARD OFOFDDIRECTORSIRECTORS

JOHN BENJAMIN, NORTHFIELD

507.645.5720/FAX [email protected]

TOM BURR, ELK RIVER

763.230.6020/FAX [email protected]

ROBBIE ELLIOT, MOORHEAD

218.233.3404/FAX [email protected]

CONNIE GRISIM, STEWARTVILLE

507.533.8775/FAX [email protected]

DOUG GRISIM, LAKE CITY

651.345.4112/FAX [email protected]

TOM HEY, MARSHALL

507.532.4043 / FAX [email protected]

KEN INSELMANN, WILLMAR

320.235.2110/FAX [email protected]

SHELLY JONAS, ANNANDALE

320.274.8313 / FAX 274.8027

[email protected]

BRIAN KOCH, WACONIA

952.442.3370/FAX [email protected]

JIM KOONST, BELLE PLAINE

952.873.2362 / FAX [email protected]

GAYLEN LENZ, MADELIA

[email protected]

RUDY LUNDAHL, DULUTH

218.724.1707 / FAX [email protected]

CHARLES PETERSON, JR., ANDOVER

763.450.5385 / FAX [email protected]

GARRETT REGAN, FARIBAULT

507.334.5121/ FAX 334.2039

[email protected]

JIM SCHIFFLER, MINNEAPOLIS

320.266.1312 / FAX [email protected]

JOSH SCHIFFLER, CROSBY

218.546.6156 / FAX [email protected]

The OperatorMISSION STAT E ME NT:

THE PURPOSE OF THE OPERATOR

IS TO PROVIDE THE MEMBERSHIP

OF THE MINNESOTA SCHOOL BUS

OPERATORS ASSOCIATION WITH

INFORMATION REGARDING

CURRENT INDUSTRY ISSUES.

THE OPERATOR IS PUBLISHED 11

TIMES A YEAR BY THE MSBOA,

10606 HEMLOCK ST. NW •

ANNANDALE, MN 55302.

FOR MORE INFORMATION CALL

320-274-8313.

E-Mail [email protected] or

FAX: 320-274-8027.

Website: www.msboa.com

SUBSCRIPTIONS ARE FREE

WITH MEMBERSHIP. ADDITIONALSUBSCRIPTIONS ARE $24.00 AYEAR. COPYRIGHT 2013.

MEMBERS MAY MAKE PHOTO-

COPIES OR USE ARTICLES AS

NECESSARY PROVIDING THE

SOURCE IS CITED.

CO-EDITORS:

SHARI DANZEISEN & SHELLY

JONAS

LAYOUT & DESIGN: SHARI DANZEISEN

VIEWS PRESENTED IN THISNEWSLETTER MAY NOT NECESSARILY REPRESENT THEOPINIONS OF THE ENTIRE MEM-BERSHIP OR ITS BOARD OF DIRECTORS.

PRESIDENT

GAYLEN LENZ

FIRST VICE PRESIDENT

RUDY LUNDAHL

SECOND VICE PRESIDENT

JOSH SCHIFFLER

TREASURER

TOM HEY

EX-OFFICIO

DOUG GRISIM

From the PresidentGaylen LenzMadelia Bus Service, Madelia, MN

Page 3: September 2013

At the time of this article the last days of summer are passing by, as this week brings some90 degree weather to the State and also signals the beginning of the Minnesota State Fair.As a historical note the State Fair started as the territorial fair in 1854, and a year after State-hood became the Minnesota State Fair in 1859. And as you all know very well, the end ofsummer yields and announces the beginning of a new school year. Hopefully everyone hasbeaten back the procrastination bug and all are ready and prepared for another school year.

Governor Dayton explained in his State of the State message recently that, except for responding to a fiscal or other emer-gency and passing a capitol bonding bill, The 2014 State Legislative Session should be a "Un-Session." The “Un-Session”would be devoted to eliminating unnecessary or redundant laws, rules and regulations; reducing the verbiage in those thatremain; shortening the timelines for developing and implementing them; and anything else that makes government nearlyimpossible to understand, operate or support. MSBOA members should contemplate the Governor’s request and think oflaws surrounding the school bus industry that should not exist, hinder safe and effective school transportation, and or oth-erwise are bad for the operation of a business. Please send any suggestions to me and I will make sure the MSBOA Boardreceives them.Every campaign season is different, and the 2014 State and Federal Elections are going to be very different. First of all itseems to be an early start, although traditionally campaigns do gear up for a beginning of the year run to November. Sec-ond, in political terms, the stakes are high. From the top: Senator Al Franken is running for his second term, 6th DistrictCongresswoman Michele Bachman (ran for President) is retiring, and all 134 State House Members are up for election inNovember 2014. Governor Mark Dayton is also up for election in 2014, he has somewhat stated that he is not planning touse his personal wealth to run for re-election, he is actively fundraising. The prize of the business community is the StateHouse. Currently, the DFL control the direction and outcomes (mostly) of the State House, State Senate, and the Governor’soffice. With the State Senate not running until 2016, the State House and possibly the Governor’s office are within reach ofthe Republicans. More about campaigns will be highlighted in upcoming issues of the MSBOA Operator.

During the 2013 Legislative Session a legislative proposal to define bullying in terms of “use of one or a series of words,images, or actions, directly or indirectly between individuals or through technology, that a reasonable person knows or shouldknow, under the circumstances, will have the effect of materially interfering with the ability of an individual, including a stu-dent who observes the conduct, to participate in a safe and supportive learning environment.” Basically, this would createon a school bus a new standard that would be the standard for treatment by students to students inside a school building.Violations of a new proposed “bullying” standard could result in suspension, expulsion, or a minimum of loss of school trans-portation services. While a new student bullying standard did not become law, due to a lack of time the last two days and athreatened Republican “filibuster,” this will be an early bill signing in the New Year.

Student behavior to other students, and therefore, school bus behavior have become hot button issues at the State Capitol.

Most of what is going on at the State Capitol now are very serious renovations. The State is due to be spending over $250million to renovate and upgrade the Capitol’s facilities with completion in 2016. Committee rooms, public entrances,restrooms, staff and Legislator’s offices, parking, and a proposed new Senate OfficeBuilding are all set to remake the State Capitol for the next 100 years. Over the nextfew years access to and parking around the State Capitol will be very difficult.

From a State budget perspective, the State is solvent. The “rainy day fund” and“cash flow account” have both been replenished, leaving the State with $950 millionin cash between the two accounts. The State’s current commitment to repay the“school shift” has mostly been accomplished, with the balance planned to be settledby the summer of 2014. A special Legislative Session is being contemplated forearly September in order to finance the State’s share of Federal matching dollars forthe June storms.

Continued on Page 4.

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Legislative UpdateBy Tom Keliher, Keliher Government Affairs Consulting, LLC.

Phone (612) 723-5168 • Email: [email protected]

A Nationwide Distributor of School Bus Parts

and Safety Equipment

CALL TODAY TO ORDER!Toll Free: 800-937-3906

Page 4: September 2013

Unauthorized EntryAt least six states have made it a state law that unauthorized persons cannot board aschool bus when it is en-route. Following the death of school bus driver Charles A. Poland,who was killed when he refused a gunman’s demand to turn over two children, the Alaba-ma legislature passed a law to make it a Class A misdemeanor to impede a school busroute or to enter a school bus unauthorized. The Alabama Department of Education statedthat unauthorized entry has increased dramatically in recent years.

During a quick search of school bus news items, it would appear that Alabama is not alone.

Pennsylvania, May 13, 2013 - A 28-year-old woman is accused of forcing her way onto aschool bus, pushing her way toward the back and punching a 10-year-old boy in the face,according to court records.

Texas, December 2012 – A man attempting to flee police, boards a school bus andattempts to drive the bus away as the school bus driver attended to another student duringthe morning route.

Arizona, April 2013 – A man follows a student, boards the bus and gets off at the student’sschool. Later a gun is found in the seat that the man was sitting in.

West Virginia, January 2013 – An armed man boards a school bus on a field trip and demands the driver to drive him to atown 100 miles away. The driver eventually talks the man off the bus.

California, May 2013 – Two men approach a school bus demanding to talk to students who allegedly threw something attheir vehicle. When the two stories don’t quite make sense, the driver grows suspicious and calls dispatch. The men flee.The driver is later honored for her actions.

In light of these type of events, the MSBOA has partnered with law enforcement to produce a short training film on how toprevent unauthorized entry on the school bus. The DVD teaches that the first step it to prevent entry first and foremost. Bythinking ahead and using some body positioning techniques, drivers will feel confident to deal with attempts to board theschool bus and diffuse situations with unauthorized riders.

The DVD is available on the MSBOA website and is $50 for members and $75 for non-members. For more information, con-tact the MSBOA office.

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Legislative Update Continued from Page 3...

As of today, DFL leaders and the Governor are trying to find another sourcefor $5 million representing the States share to match the Federal storm dol-lars. Republicans have said that if a Special Session is called for stormdamage, then adjustments to the tax code should occur also. But with fail-ure to agree on which taxes to revisit, the DFL leadership is trying to findmatching dollars without a Special Session. The Minnesota Chamber ofCommerce said that $300 million in taxes need to be revisted, when theDFL was only interested in closing an unintentional $28 million dollar farmequipment repair tax. Today it looks unlikely for a special session, Houseand Senate leadership and the Governor seem willing to address these taxissues in February.

The 2014 Legislative (Regular) Session is to begin on February 25, 2014.Thus, the 2014 Session should be a mad dash until May 19th, about a 12week Session. With the Governor, and the State House up for re-election,including Senator Franken’s U.S. Senate seat, and one open Congres-sional seat, should produce some interesting but not necessarily good out-comes for the direction of State politics.

If MSBOA members have any comments, suggestions, or thoughts onState of Federal government or politics, please feel free to call me at 612-723-5168 or email me at [email protected].

Page 5: September 2013

Law ChangesOn July 1, 2013, the repair and maintenance of certain equipment and machinery for businesses will be subject to Minneso-ta sales and use tax. This includes electronic and precision equipment, and commercial and industrial machinery and equip-ment.

Taxable repair and maintenance labor for businesses includes:

Repair labor – To restore an item so it can be used for its original purpose.

Maintenance labor – To keep an item in good workingorder or ensure it keeps operating safely and efficiently.

Sales and use tax applies to labor to repair or maintainelectronic and precision equipment if the purchaser candeduct the service as a business expense. This includes:

Electronic devices, computers and computer peripherals,monitors, computer terminals, storage devices, and CD-ROM drives; Other office equipment such as photocopy-ing machines, printers, and facsimile machines; Televi-sions, stereos, sound systems, video or digital recordersand players; Two-way radios and other communicationsequipment.

Repair or maintenance of commercial and industrialmachinery and equipment does not include:

Motor vehicles - Motor vehicles are self-propelled vehi-cles or trailers that: 1) must be registered for use on pub-lic roads; or 2) is designed and manufactured primarily forhighway use. This generally includes passenger cars,trucks, semitrucks, trailers that must be registered, policecars, fire trucks, ambulances, buses, limousines, motorhomes, and motor cycles. This does not include snow-mobiles, boats, off-road vehicles, most farm machinery,and heavy operating machinery.

Furniture and fixtures

Ships, railroad stock, and aircraft.

Other state laws that went into effect August 1st that mayaffect your business are as follows:

Sick leave definition expansion: Employees are nowable to use sick leave to care for an adult child, spouse,parent, grandparent or stepparent.

Bicycle lane parking prohibition: It is illegal for anyoneto park their vehicle in a designated bicycle lane, exceptwhen signs are posted that permit parking. Restrictionson vehicles turning through bike lanes and vehicles pass-ing through bike lanes

Special event bus usage: Allows school busses to beused for one or two day special events without beingrequired to register as commercial buses.

Cell phone restriction: A prohibition on the use of a cellphone for personal reasons by school bus operators isexpanded to all times when the vehicle is in the flow oftraffic, including stopped at a traffic light, and state lawrequiring school bus drivers to wear a seat belt has beenclarified to specify the safety belt must be worn acrossthe shoulder and lap. Continued on Page 10.

5

Financing available throughFinancing available through

Page 6: September 2013

Are You “Fit” to Drive?Safety is always a priority when children are your passengers. Drivers transporting children to school complete pre and posttrip inspections of their vehicles using a checklist to remind them of the critical safety components. We will focus on a differ-ent type of driver checklist in this article, a personal safety checklist for drivers to mentally review before each run.

Similar to airline pilots who complete a personal safety checklist before a flight, school bus drivers may want to mentallyrehearse this checklist before their daily route to analyze personal status or issues that may limit their ability to safely operatea school bus. Drivers who are consciously aware of these items can take appropriate steps to minimize conditions that mayinhibit their driving ability.

1. Illness - Are there any serious illnesses that would hinder, or in some cases, prevent you from driving? A minor illness, likea cold, may not prevent you from driving, but be aware that you are not 100% and extra attention to driving is needed.

2. Medication - Any medications for an illness that creates drowsiness, or other distracting side effects, may require you toreassess driving. Discuss prescription and over-the-counter medications with your doctor or pharmacist if they could affect dri-ving ability. If you are taking a new medication do not wait to discuss the affects with a health care professional. It is impor-tant to check that what you are taking will not affect your ability to drive.

3. Stress - Stress affects everyone, some people more than others. For drivers, stresscreates an internal distraction that could lead to missing important safety steps or road haz-ards. Drivers need to assess their current stress level. Drivers should understand that toomuch stress may have a detrimental effect on their ability to drive. Relaxation techniques,such as deep breathing, may help calm some stressful situations. If serious life conditionsare creating stress that a driver is not capable of effectively managing, a driver should con-sider professional help and limit their driving.

4. Alcohol - Consumption of alcohol within the last eight hours before driving could affectyour ability to drive safely. Proper planning of any consumption will help minimize con-cerns with driving while still under the influence of alcohol. Should an accident occur, fol-low up testing for blood alcohol is likely.

5. Fatigue and Food - Falling asleep while driving is often attributed to lack of sleep orconsumption of too much or irritating foods. A personal assessment of alertness should bemade. If a previous night’s sleep was inadequate, a driver should not risk driving, espe-cially for long trips.

6. Emotion - No clear-cut rule can be used for determining what level of emotional issuesmake a driver unsafe. Similar to stress, drivers should recognize when they cannot man-age their emotions sufficiently enough to drive safely. Every driver should consciouslyreview and be sure their emotions are in check.

This personal safety checklist is intended to give a driver some clues about themselvesthat may affect their ability to drive safely. Some rules are clear cut like alcohol or med-ications, others are more subjective. A personal assessment before each trip should helpdrivers recognize personal conditions that may interfere with safe driving. When a driverassesses his personal status as closely as his vehicle status, it creates the perfect combi-nation for protecting our passengers.

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Page 7: September 2013

Hello, my name is Rayme Bernick, I was basically born andraised in Delano, Minnesota. I manage Stahlke Bus Service inDelano, which has been in my husband’s family since 1948. Iam blessed and grateful to be a part of such an amazing indus-try, and hope that my 2 girls will want to be the 4th generationto own and operate school buses. Hanley is 7 and Olive is notquite 5 years old. They both love spending time at the busgarage and helping out whenever they can!

When I was younger I would have never guessed that this iswhere I would be in my life. I hold a Bachelor’s degree in Salesand Marketing, and I was going to have a corporate career,wear high heels and suits every day! I am now thankful that isnot the case, after being out of the corporate world, I now knowI could never go back. I hold a strong passion for the schoolbus industry, and continue to learn something every day.

I have huge shoes to fill as my Mother-In-Law, Julie Bernick,was the first female president of the MSBOA. I am happy tobe following in her foot-steps, and look forward toserving you for the next 3years on the board!

My name is Michael Putzke and I am with PaynesvilleMotor & Transfer Company located in the small town ofPaynesville. I am the third generation of our family busi-ness which has been in operation since 1947. I havebeen involved in all aspects of the business over theyears, from cleaning buses, to driving, to routing, tonegotiating contracts and everything in between.

My family consists of my wife Susie and our son Liam,who was just born in April of this year. We enjoy spend-ing time on Lake Koronis here in Paynesville. I have par-ticipated in our community theater both on stage andbehind the scenes. I volunteer as the advisor for a groupof teens who run the school’s gymnasium and auditori-um tech and they also DJ school dances.

In the past I was a member of the joint MSBOA/MAPTcommittee which met to remake the driver training video“Inspecting Your School Bus.” I am looking forward tothis opportunity of serving on the board to not only con-tribute to the association, but to learn from other mem-bers as well.

7

A CONTINUING SERIES OF BOARD COMMENTARIESNews and Views

call: 763-544-3319 Email: mobilemike@ mobileradioeng.com

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Authorized Representives for: �Kenwood �Vertex �Harris

solutions & consulting!

Michael PutzkePaynesville Motor & Transfer

Rayme BernickStahlke Bus Service

Newly Elected Board Member Introductions!

Have aSafe

SchoolYear!

Page 8: September 2013

8What Do Your Financial Statements Say About Your Business?By: Kim A. Mahanna, CPA for Smith Schafer & Associates, Ltd., Certified Public AccountantsPhone: 651-770-8414 • Email: [email protected]

In the U.S.’s fragile economic climate, financial statement presentation can mean the difference between lenders makingloans to customers as needed during down times, as well as for the timing difference between the collection of receivablesand payment of accounts payable or not.

Recently, a business owner and I met with a banker to discuss current and future borrowing needs. After little discussion, itwas apparent, based upon the bank’s review of the customer’s financial statements, there was concern over the value of com-pany assets and net income of the business.

We directed the banker to the basis of accounting upon which the financial statements were prepared. In this particular case,the financial statements were presented on the income tax basis of accounting. The income tax basis of accounting methodreports depreciation in the financial statements using the same depreciation method as in the business income tax return.Some businesses use the income tax basis of accounting is because it requires maintenance of only one set of depreciationschedules.

One of the benchmarks of financial accounting is, all capital assets are recorded on the balance sheet at historical cost. Forexample, the price for which the item was purchased. In simple terms, financial statements do not necessarily reflect the “FairMarket Value” of an asset.

Example: ABC Company purchases five new Mid-Buses at $48,000 each. The “historical” cost figure of $240,000 would bereflected on the balance sheet under the Property and Equipment section for as long as the assets are owned by ABC Com-pany. For the purpose of reducing ABC Company’s income tax liability, the $240,000 would most likely be immediately depre-ciated under the federal Internal Revenue Service Section 179 expensing rules. Financial statements issued under the incometax basis of accounting would reflect a zero “net book value” for the buses because they had been immediately expensed asallowed by the IRS as well as substantial depreciation expense for the year. However, the useful and realistic “life” of a newMid-Bus is probably 10 years or more. If ABC Company chose to present its financial statements under Generally AcceptedAccounting Principles (GAAP,) then the useful life of assets placed in service would be determined by management and sub-sequently the financial statements under GAAP would more accurately reflect the un-depreciated remainder of assets overtime.

The chart below shows the asset difference on the face of the financial statements comparing accounting methods of IncomeTax Basis to GAAP Basis one year after the equipment was purchased. This switch does not affect the tax return and/or sub-sequent tax liability. It is merely a different method of reporting the financial position of the company.

Income Tax GAAP Basis Basis

Cash $10,000 $10,000Accounts Receivable $20,000 $20,000

Buses 240,000 240,000Less: Accumulated depreciation (240,000) (24,000)Net Property and Equipment - 216,000

Total Assets $30,000 $246,000

There are income thresholds and other rules affecting the amount of Section 179 expenses that can be taken in a tax year,as well as other factors, such as whether a capital asset is purchased new or used and how much is spent on capital assets.

Communication is crucial for any business. Open communication with bankers and accountants form important passages forunderstanding the details of a financial statement presentation and ultimately, help run a business successfully.

For more information on this topic or tax related questions you may have, please contact the Smith Schafer TransportationTeam at 651-770-8414.

Page 9: September 2013

Minnesota Supreme CourtFinds Certain Wage DeductionsUnlawfulOn August 14, 2013, the Minnesota Supreme Court held in Karl v. Uptown Drink, LLC, that employeesdo not have to show that their wages fell below minimum wage in order to prove that unlawful deduc-tions were made by their employer. Minnesota Statute §181.79 makes it unlawful for an employer tomake any deduction from an employee’s wages for lost or stolen property, damage to property, or torecover any other debt from the employee.

A class of 750 plaintiffs who worked for the defendant’s restaurants as bartenders, servers and securi-ty guards, filed suit against their employer alleging, among other things, that deductions were unlawful-ly made from their wages because they were required to pay for shortages if customers walked out with-out paying or failed to sign credit card receipts. The employer argued that since the deductions weremade from the employees’ tips, and not from their hourly pay, no deductions were being made from theirwages. However, the court of appeals concluded that the term “wages” as used in Minnesota lawincludes gratuities. In addition, the court of appeals determined that §181.79 does not require employ-ees to show that deductions caused their wages to fall below the min-imum wage in order for the deduction to be unlawful, and held thatany deduction to recover debt from an employee without the employ-ee’s written authorization is unlawful.

In Minnesota, wage deductions from an employee’s pay may only bemade under very limited circumstances and often require the writtenconsent of the employee. The decision highlights the necessity ofemployers to ensure that any wage deduction policies or practicesinvolving automatic deductions from wages are legally compliant.

Legal Notes 9

HOTLINE PHONE: (952) 921-4622

BY THOMAS REVNEW, ESQ., OF SEATON, PETERS & REVNEW

Best Values:

Legal Hotline for MSBOA members

Employee Handbook & Employment Materials Package $1,075 (includes 2 hours of attorney time – hourly rates thereafter)

Drug & Alcohol Testing Package $525 (includes 1 hour of attorney time – hourly rates thereafter)

Ask for MSBOA discounts on Handbook ($100) and on D/A TestingPackage ($50)

Contact Tom Revnew

7300 Metro Blvd, Suite 500 | Minneapolis, MN 55439

Tel 952.921.4622 | Fax 952.896.1704 www.seatonlaw.com

Page 10: September 2013

Law Changes Continued from Page 6.Education: The state will spend an estimated $15.7 billion on education over the next two years, an increase of $485 mil-lion. About half of the new money will go on the basic school funding formula, with increases of 1.5 percent each year. In afirst for Minnesota, another $134 million will fund optional all-day kindergarten statewide starting in the fall of 2014.

Other notable changes in Education:

The age of compulsory school attendance will increase from 16 to 17.

The new law excludes epinephrine auto-injectors from the general requirements for administering medicines in schools, andmakes other changes giving schools more leeway to use EpiPens when students have life-threatening allergic reactions.

The law revises a statute that governs when and how school employees can physically restrain or seclude children to keepthem from hurting themselves or others. Among other things, the new law specifies that schools may not use seclusion orphysical holding as a form of discipline. Schools may continue to use prone restraints – placing a child in a face-down posi-tion – until Aug. 1, 2015, a two-year extension of the current deadline.

By March 1, 2014, the education commissioner must receive recommendations on how to reduce the use of restrictive pro-cedures. The commissioner must give legislators a report on districts’ progress in reducing the use of restrictive proceduresand eliminating the use of prone restraints.

10

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(800) 866-3105www.hoglundbusandtruck.com

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We live on a cul-de-sac. Will the bus come down our street?Except for special education circumstances, buses are generally not routed into a cul-de-sac. Cul-de-sac stops are considered unwise for the followingreasons:

1. Cul-de-sac stops create blind spots often causing students to enter or exit in a danger zone around the bus (at a corner stop or street curb stop, they enter/ exit outside the danger zone)

2. Different styles and sizes of buses make maneuvering in cul-de-sac difficult

3. The rear of the bus has potential to swing around close to the sidewalk

4. Parked cars and other obstacles create road hazards that may not be seen until entering the cul-de-sac and at a point of no return.

5. Backing up a bus when students are on board is strictly forbidden

6. Property damage to mailboxes and landscaping.

In July 2010, NHTSA in conjunction with National Center for Safe Routes to School and the Pedestrian and Bicycle Infor-mation Center released a guide for selecting school bus stops. The document can be downloaded off our website under thesafety links section.

Selecting a School Bus Stop Continued from Page 1.

Page 11: September 2013

11Company Name: Address --- Address --- Phone: ( ) ________ Fax: ( ) ________

APPLICATION INFORMATION SHEET (For Informational purposes only)

WELCOME TO ___________________ AND THANK YOU FOR YOUR INTEREST IN EMPLOYMENT WITH OUR COMPANY. PLEASE READ FOLLOWING INFORMATION CAREFULLY: MINNESOTA STATUE STATES THAT IN ORDER TO OBTAIN A COMMERCIAL DRIVER LICENSE WITH A SCHOOL BUS ENDORSEMENT, YOU MUST HAVE NO MORE THAN THREE (3) MOVING VIOLATIONS WITHIN A PERIOD OF FIVE (5) YEARS ON YOUR DRIVING RECORD AND MUST ALSO NOT HAVE ANY ALCOHOL RELATED OFFENSES WITHIN THE PAST TEN (10) YEARS. MINNESOTA STATUTE ALSO STATES THAT IN ORDER TO OBTAIN A COMMERCIAL DRIVER LICENSE WITH A SCHOOL BUS ENDORSEMENT, YOU SHOULD HAVE NO FELONY, MISDEMEANOR OR GROSS MINDEMEANOR CONVICTIONS. ANY PHYSICAL OR MENTAL DISABILITIES THAT MAY PREVENT YOU FROM OPERATING OR ASSISTING ON A SCHOOL BUS MUST BE DISCLOSED AT TIME OF INTERVIEW. Examples Include: Diabetes, Heart Disease, Sleep Apnea, Back Injuries/Problems, Depression, In Treatment For Any Mental Health Problems Or Alcoholism.

IF YOU CURRENTLY HOLD A CDL (COMMERCIAL DRIVER LICENSE), PLEASE PROVIDE A COPY OF YOUR CURRENT CSA 2010 RECORD.

Note: If you have not maintained residence in the State of Minnesota for the past five (5) years, we are required,

by law, to complete a Criminal Background check. ____________________ agrees to pay for the first Criminal Background check up to the amount of $_____. Applicants will be required to pay for any additional checks (e.g., multiple names). By signing this form, you are agreeing to pay for any additional required Criminal Background checks and are authorizing us to deduct the fee from your first paycheck, if hired.

FAILURE TO DISCLOSE ANY OF THE ABOVE INFORMATION, AT INTERVIEW, MAY RESULT IN APPLICANT BEING REQUIRED

TO REIMBURSE ____________________ FOR ANY TRAINING EXPENSES INCURRED ON THEIR BEHALF.

I have read and understand the above information. APPLICANT NAME: ______________________________________________________________________________ SIGNATURE AND DATE: __________________________________________________________________________

Use this form to alter your employment applications and remove the question and box

asking if the applicant has ever committed a felony. You may ask the question during an interview

but it is unlawful to do so in the application.

Page 12: September 2013

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From the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Legal Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

News and Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

MSBOA PlannerSave these Dates!

Minnesota School Bus Safety CommitteeMeets 3rd Weds. of Every MonthLocations VaryContact: LeAnn Livingston 651-982-8193

Transportation Issues Study CommitteeMeets 4th Weds. of Every MonthContact: Keith Paulson 763-506-1132

Office of Pupil Transportation StakeholdersQuarterly Meetings Held, Dates VaryContact: Lt. Brian Reu 651-405-6047

January 17-18, 2014MN School Bus Safety ExpoSt. Paul, MN

Northern RegionSergeant James SenenfelderNorthern Regional TrooperPhone (612) 360-5172E-mail: [email protected]

Metro RegionSergeant Paul DavisMetro / Central Regional TrooperPhone (612) 685-4820E-mail: [email protected]

Southern RegionSergeant Chad DauffenbachSouthern Regional TrooperPhone (507) 430-0791E-mail: [email protected]

MN State PatrolContacts

Listed to the right is contact infor-mation for the state troopers incharge of school bus transporta-tion.

Use this contact information!They are ready to help with anyquestions or concerns you mayhave!

In This Issue:

MSBOA LEGAL HOTLINE(952) 921‐4622 • Tom Revnew at Seaton, Peters & Revnew