Bus & Motorcoach News
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July 15, 2003 THE NEWS RESOURCE FOR THE BUS AND MOTORCOACH INDUSTRY New Greyhound CEO is primed for challenges DALLAS — The new pres- ident and CEO of Greyhound Lines intends to spend the next few weeks listening to cus- tomers, employees and business partners as he fast tracks a strategic plan designed to get the company growing again. Stephen E. Gorman was handed the coach industry’s toughest job on July 1, just days after Grey- Georgia’s Motor Coach of Mableton, Ga., went from a shoebox-size facility to this sprawling complex in suburban Atlanta. Stephen Gorman hound’s par- ent company, Laidlaw International, emerged from bankruptcy. He was hand- Operators who gambled on growth are success picked by Laidlaw executives Two small motorcoach operators who took a Initially, the George’s facility in the Atlanta to replace Craig Lentzsch, who chance on the future of their businesses by suburbs contained 14,000 square feet, including had managed Greyhound investing in new facilities a little over five years 8,000 square feet housing five service bays, a through an offtimes turbulent ago have come up winners. service pit, an automatic bus wash, a restroom nine years. George’s Motor Coach of Mableton, Ga., dump and parts room. The remaining 6,000 Gorman’s appointment and Executive Coach Inc. of Lancaster, Pa., say square feet was for offices, although only about appeared designed both to the bold moves they made in the late 1990s half of it was occupied. impress Wall Street and bring proved to be just what was needed to help them Two and one-half years ago, George’s office fresh leadership to Greyhound, grow. staff had not only filled the vacant space but which is mired in one of its Both were being squeezed by overcrowded needed more room. Constructing a 3,200- periodic downturns and faces quarters that were stunting their dreams of square-foot second story over the office area enormous challenges. becoming bigger and more competitive players filled the need. “Laidlaw wanted to make a in their parts of the country. George’s was shoe- The additional office space was considered visible change,” Greyhound horned into a single facility that was busting at necessary because the business was growing. spokeswoman Lynn Brown was the seams, while Executive Coach was spread The company expanded its charter service to quoted as saying. out in three different locations. include cities across the country — Chicago, “(Steve’s) experience in ini- “It turned out to be a very good move for us,” Detroit and Salt Lake City among them — tiating change in a challenging says Elvin McMichael, president and general although its main focus remains on communi- environment will be a major manager of Executive Coach, which runs char- ties along the East Coast. asset as Greyhound adjusts to ters throughout North America. It also added corporate work to its offerings the current weak consumer Don George, president of George’s, echoes and started going after more convention shuttle travel markets,” said Kevin that view, noting he couldn’t even fill up his jobs. “We’ve tried to build our business into a Benson, chief executive of new facility when he moved in, but in the inter- Elvin and Mary McMichael of Executive Coach in one-stop shop,” says George. CONTINUED ON PAGE 10 vening years has added a second story to the Lancaster, Pa., have grown their company by To accommodate the new business, the bus building to accommodate company growth. building a 5,500-square-foot facility. CONTINUED ON PAGE 12 TheThe Fuel Tax Rates UMA Election DOCKETDOCKET From sea to shining sea, plus Four board of director seats are up Canada, here are fuel tax rates. from grabs in annual UMA elec- Bus Security Page 4 tion. 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The board contended coach operator in Florida, has pur- formed in the early 1990s to set up Ah, sweet music; sweet more than a year. Meanwhile, that Harmon Brothers failed to chased much of the Orlando oper- the system. The district is com- revenge. Harmon Brothers’ 2000 tax assess- show that its buses acquired a tax ation of the Martz Group of prised of the city of Orlando, Harmon Brothers’ battle with ment rolls in and there still is no situs outside of Georgia. Wilkes-Barre, Pa. Orange County and businesses its local tax collectors began in provision for apportionment of Once again the court disagreed The acquisition, which was along International Drive. December 1998, when it received taxes. At that point, Harmon with the board. completed July 1, includes the Today, the district has three its 1999 ad valorem tax assess- Brothers went to court. The appeals court found that charter business that was on the separate municipal service taxing ments on its buses. On May 9, 2000, almost a year Form PT-95 serves as an affidavit Martz books, a contract to operate units that operate under a joint The company operates a fleet of and a half after Harmon Brothers that a taxpayer’s vehicles qualify the I-Ride Trolley along Inter- governing board. The arrange- more than 50 buses and other filed its initial appeal, a Fulton for apportionment, and, once the national Drive in Orlando, and 13 ment has served as a model for vehicles. It provides charter serv- County Superior Court entered an county receives the forms, it is motorcoaches. similar systems else- ice for both interstate and order requiring the Board of Tax obliged to allow the apportion- The Martz Group where in the U.S. intrastate travel. A few of its buses Assessors to issue a decision on ment. It didn’t matter, under law, has closed its ‘The major The 15 trolley operate on fixed routes, but most Harmon’s appeal within 20 days. that the company made no show- Orlando unit, which buses Mears inherits are chartered by customers and Three months later, the Board ing that its interstate vehicles had operated under the asset Mear’s as part of the deal travel wherever customers want. of Equalization granted Harmon actually been taxed elsewhere. name First Class are 2000 and 2001 The 1999 tax assessment sent Brothers request for apportion- The court also said the board Coach Co., but the acquires is models from to Harmon Brothers by the Fulton ment of ad valorem taxes for both had no authority to disregard the company continues the I-Ride Specialty Vehicles County Board of Tax Assessors 1999 and 2000 on the company PT-95s submitted by the company. to maintain its oper- in Huntington made no provision for apportion- buses that had obtained a tax situs In its conclusion, the court said ation in St. Trolley Beach, Calif. They ment of taxes. in states other than Georgia. it was “deeply disturbed” by the Petersburg, Fla., are built on A month after receiving the However, down the hallway at conduct of the Board of Tax which also is brand- contract.‘ Freightliner chassis notice, Harmon Brothers filed a the Board of Tax Assessors, the Assessors and how it had “ignored ed First Class Coach. and equipped with notice of appeal with the county bureaucrats weren’t ready to throw its statutory duties until the tax- Martz has six other operating divi- Cummins ISB engines. They log Board of Equalization, requesting in the towel.