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F:\LMVC Meetings\2012 Commission Meetings\November 5, 2012\LMVC MINUTES OF THE MEETING OF THE LOUISIANA MOTOR VEHICLE COMMISSION 3519 12th Street Metairie, Louisiana 70002 Monday, November 5, 2012 The meeting was called to order at 10:12 a.m. by Chairman Raymond J. Brandt. Present were: Chairman Raymond J. Brandt Commissioner Troy J. Duhon Commissioner V. Price LeBlanc, Jr. Commissioner Brian C. Bent Commissioner John B. Fabre Commissioner John W. Timmons Commissioner Thad J. Ryan, III Commissioner James C. “Jim” Hicks Commissioner Joseph W. “Bill” Westbrook Commissioner Philip E. Tarver Commissioner Maurice C. Guidry Commissioner Alexis D. Hocevar Commissioner Don P. Hargroder Commissioner Donna S. Corley L. A. House, Executive Director Adrian F. LaPeyronnie, III, Counselor Gregory F. Reggie, Counselor Burgess E. McCranie, Jr., Counselor ***************************************************** Also, in attendance were: Sam Petersen, Co-Owner and Vice-President of Petersen Industries, Inc.; Seth Weinberg, General Counsel and Ron Stogsdill of The Vehicle Production Group, LLC; John Thomas, Counsel for Deep South Fire Trucks, Inc.; Joe Moss, Sales Representative of Hol-Mac Corp.; Tom Casey, Counsel for Fisker Automotive, Inc.; Kim Katner, Sponsorship and Development Manager and Marci Schramm, Executive Director of French Quarter Festivals, Inc.; Duane Cowart, Lobbyist for the NMMA and MIC; and Michelle Ducharme, Attorney of Louisiana Senate; and Commission staff: Ingya Cattle, Assistant Executive Director; Art Quick, Compliance Investigator 5; Commission Investigators, Wayne Lee, Amy Lawson, Ayanna Burton and Neil Rogers; Administrative Coordinators, Sylvia Schwarz, Jay Williams, Stacey Broussard and Josh Stevenson. ***************************************************** The Chairman announced the first order of business would be Hearing #2011-070, U-Dump Trailers, LLC regarding rule to show cause why civil penalty shall not be fully imposed. A court reporter was brought in to record the transcript of this hearing, which will be made a permanent part of the Commission’s files. ***************************************************** The Chairman announced the next order of business would be Hearing #2012-043, KenCraft Mfg., Inc. for alleged violations of LSA-R.S. 32:1254A(1) & (4); LSA-R.S. 32:1261(1)(h); and Title 46. Part V. Subpart 1. Chapter 5 §513A. A court reporter was brought in to record the transcript of this hearing, which will be made a permanent part of the Commission’s files. ***************************************************** The Chairman announced the third order of business would be Hearing #2012-044, Tao Tao USA, Inc. for alleged violations of LSA-R.S. 32:1254A (4); LSA-R.S. 32:1261(1)(h); and Title 46. Part V. Subpart 1. Chapter 5 §513A. A court reporter was brought in to record the transcript of this hearing, which will be made a permanent part of the Commission’s files. ***************************************************** The Executive Director advised the Commission Members the following bond waiver request had been received on October 23, 2012 from Woodrow C. Hardee, President of Petersen Industries, Inc., along with copies of its balance sheet and income statement: “Petersen Industries was issued a license in your stated earlier this year, Convertor License #CV-2012-00155. We requested and were granted a waiver on the bond requirement for this license. Please consider this letter as our formal request for a waiver of this requirement for our 2013 license. In support of this request, we offer the following for your consideration: -Petersen is an established company in the industry for 50 years with sound finances. -Petersen has over 900 municipal customers nationwide. LMVC.11.05.12.#1 -Petersen has a strong history of warranty support and will have a distributor in Louisiana to service and warrant its product. -Sales cycles with municipalities can range from weeks to years depending on budget constraints and added costs from bonding would be incorporated into the price to Petersen customers, usually municipalities. -Petersen’s customers are sophisticated buyers who usually, if not always, pursue purchases by bid with specifications. You will find included with this letter a financial statement for the period ending 09/30/2012. After review of this letter and supporting statement, please advise if you need any further information prior to the Commission meeting to be held on November 5, 2012, Thank you.” At this time, the Chairman opened the floor for Sam Petersen, Co-Owner and Vice-President of Petersen Industries, Inc. to address the Commission Members regarding Petersen Industries’ balance sheet and income statement. Mr. Petersen responded to the questions posed by the Commission Members regarding Petersen Industries’ operations and its financials. After a brief discussion, Commissioner Tarver made a motion to waive the bond requirement of LSA-R.S. 32:1254D(6)(a) for Petersen Industries, Inc. Commissioner Fabre seconded this motion and it was unanimously approved. ***************************************************** The Executive Director advised the Commission Members the following bond waiver request had been received on September 19, 2012 from Sam Snider of Custom Truck & Body Works, Inc., along with copies of its balance sheets and profit and loss statements: “Custom Truck and Body Works, Inc., manufacturer of Emergency and Specialty vehicles, is currently applying for a license with the Louisiana Motor Vehicle Commission to do business in the state of Louisiana. Our business was started in 2003 and our growth has been substantial. We are a very stable and financially sound company. We are requesting to have the $1,000,000.00 surety bond waived from our application process.” A brief discussion ensued after the Commission Members reviewed Petersen Industries’ balance sheet and profit and loss statements. Commissioner LeBlanc made a motion to waive the bond requirement of LSA-R.S. 32:1254D(6)(a) for Custom Truck & Body Works, Inc. Commissioner Hocevar seconded this motion and it was unanimously approved. ***************************************************** The Executive Director advised the Commission Members the following bond waiver request had been received on October 30, 2012 from Seth Weinberg, General Counsel of The Vehicle Production Group LLC, along with copies of its consolidated balance sheet and a limited guaranty letter from VPG Holdings LLC: “As you know, in 2012 the Commission granted The Vehicle Production Group LLC (“VPG”) a waiver of the §1254D(6)(a) $1,000,000 bond requirement as it applies to VPG, until its next license renewal. With that license renewal approaching at the end of the current calendar year, VPG hereby requests a renewal of such waiver of the bond requirement until the next renewal of VPG’s license. As the commission is aware, VPG’s waiver for 2012 was conditional upon a guarantee of all its obligations in the State of Louisiana by its parent company, VPG Holdings LLC, which guarantee continues to be in effect today and would remain in place for the duration of any continuation of the waiver. Enclosed please find a consolidated balance sheet reflecting VPG’s current and pro-forma financial position, along with the descriptions of the pro forma adjustments related to both another capital raise that is expected to close within the next 30 days and the future conversion of convertible notes. Today, VPG conducts business as a motor vehicle manufacturer in all 50 states, with approximately 85 franchised dealers in 48 separate states (including two in Louisiana), approval of MV-1 by Federal General Service Administration and numerous state and local tax commissions, etc. To date, VPG has produced and sold approximately 2,000 new motor vehicles in the United States (split between our abbreviated 2011 and 2012 model years), and expects to produce approximately 6,000 in 2013. VPG continues to grow as a company and continues to reinvest in expansions of its dealer network, marketing initiatives and new product development, including the introduction of the 2013 MV-1 LX, an upgraded consumer model of the MV-1 suitable for providing accessible consumer and limousine service. VPG serves a relatively unique market in its manufacture of the MV-1, the first and only factory-assembled wheelchair accessible vehicle. Assembled in Mishawaka, Indiana, the MV-1 meets all Buy America requirements without a waiver. With the introduction of the MV-1, following a public comment period last summer, the Federal Transit Administration is currently reviewing a potential revocation of the 2010 waiver that permits foreign minivans to be purchased with FTA funds due to what was a lack of US domestic manufacturing in the applicable category. We also respectfully suggest that in reviewing our request, you consider the 2012 taxicab industry ordinances passed by the New Orleans City Council. These ordinances, adopted by the New Orleans City Council at its April 9, 2012 regular meeting, specifically acknowledge the city’s interest in “requiring the inclusion of ADA LMVC.11.05.12.#2 compliant wheelchair accessible taxicabs..”(Section 162-201 of the Code of the City of New Orleans) and, remove a previous cap on the number of wheelchair accessible taxi licenses issued by the city. The increased demand for wheelchair accessible taxis that will immediately result from these new provisions makes the need to allow VPG to serve the wheelchair community in Louisiana both more urgent for VPG and more beneficial to New Orleans. While we believe that removing the cap and permitting
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