July 1, 2011

Dear NJGCA Member:

Here's what you'll find in this edition of the NJGCA Road Warrior, and thank you for reading:

EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
•Happy Fourth of July!  The Market Roller Coaster, Exxon Meeting, DEP Regs and More!

NEWS AROUND THE STATE
•Opinion: Pension and benefit reform is a ‘taxpayer rescue’
•Automakers Surprised: Federal Government wants 56.2 mpg average by 2025
•Congress calls on nation-wide ban on handheld cell phones while driving
•Safety Tech: Ford to add inflatable seat belts to new vehicles

SNAPSHOTS
•From Wednesday, June 29th as NJGCA meets with Exxon franchisee dealers in Clark

TRAINING CLASS SCHEDULE
•NEW CLASS SCHEDULE!  See two class options below!

MEET THE FOLKS AT LIBERTY GAS
•Looking for a new brand for your station? Take a look at the opportunity below!

MEMBER BENEFIT PARTNER MESSAGE
•TMP Energy Solutions: Another Way to Save On Your Energy Bills! 

REAL ESTATE FOR SALE OR LEASE
•Interested in acquiring or leasing a property?  See below!

A SPECIAL MESSAGE FROM BELLOMO FUELS
•Serving New Jersey since 1910 -- Over 100 years of supplying gasoline retailers like YOU!

POLITICAL PARTICIPATON: THE NJGCA PAC
•Participate in the NJGCA PAC today and help us keep our Agenda rolling in Trenton!

THE MEMBER TOOL BOX
•On the NJGCA Homepage
•Know your Territory Manager!

 EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS! 

THE MARKET PLACE ROLLER COASTER, EXXON MEETING, DEP REGS AND MORE!
Happy Fourth of July!

"Before God, I believe the hour has come. My judgement approves this measure, and my whole heart is in it. All that I have, and all that I am, and all that I hope in this life, I am now ready here to stake upon it. And I leave off as I began, that live or die, survive or perish, I am for the Declaration. It is my living sentiment, and by the blessing of God it shall be my dying sentiment. Independence now, and Independence for ever!" 
– John Adams, Speech to the Continental Congress, July 1, 1776

The most American of holidays is upon us.  On Monday, we once again celebrate our nation’s birthday, marking the 235 years since the founding of these United States.  That means we’ll have a long weekend of parades, fireworks, ballgames, family, friends, and – of course – Hot Dogs! 

I’m really looking forward to it – and I hope you are too!

Still, as much as these traditions have become staples in our annual ritual and welcomed sacraments of our patriotic heritage, is there yet another way in which we can commemorate this uniquely American celebration? 

Each year I ask you to pause and reflect on the special significance of the Fourth of July and this year is no different.  While you will undoubtedly come across numerous articles or documentaries this weekend chronicling America’s birth, there is a deeper meaning to this holiday than can be grasped from a newspaper or television program. 

I ask you to make this holiday a personal one, putting yourself in the shoes of our founders.  Imagine what it was like to stand in the Pennsylvania State House (now commonly know as Independence Hall) in the sweltering summer of 1776 with a group of colonial delegates. Imagine further the audacity and determination it took for a group of English subjects to defy a world power like the British Empire.  If our Revolution were held today, would we have the fortitude to challenge the sovereign authority of a king and see our purpose through?

I can’t answer that question anymore than you can, but it does make me very grateful to know that our forebears did have the courage to answer it for us 235 years ago.  God Bless them for it.

The marketplace roller coaster continues to speed along at an unpredictable pace and no one knows what will happen next.

Last week prices dipped to allow you to grab a bit more margin. A week later and prices are rising and your profits are getting squeezed once again. 

The decrease you saw last week solely due to President Obama’s move to release 30 million barrels of oil from the Strategic Petroleum Reserve (SPR).  That move saw prices artificially drop by 10¢ virtually over night.  This allowed you to keep your prices stable and permitted you to grab a bit more margin for a few short days.  However, as I’ve been ranting about all week, when the President tapped SPR, he was mucking in markets he had no business messing in.  Put simply, there was no reason for him to have used SPR in such a way.  The price was going down slowly on its own by reacting to market conditions.

Are you better off than you were last week?  The answer is obvious.

We are near the height of the summer driving season.  The fact that consumption has not increased would have slowly but steadily made prices tick downward, allowing you to maintain those margins and make up for a really rough few months.  Now, however, I haven’t got a clue how to predict what the outcome of an artificial intervention into the marketplace will do. 

Despite politicians playing where they don’t belong, this doesn’t mean things have to start getting cut throat out there.  You can still hold onto a part of those margins to ride out this most recent storm.

On Wednesday, we held a meeting with a group of Exxon franchisees in anticipation of an offer from Exxon which would allow these small business owners to purchase their locations. Over 70 Exxon dealers came to the Crowne Plaza in Clark to attend.  They heard from NJGCA Member Benefit Partners (MBPs) to help them to finance their stations and, most importantly, how to deal with some of the legal and environmental pitfalls that ownership entails.  Since this process was set into motion a few years back with the passage of our First Right of Refusal legislation, some of our Shell members have closed on their locations.  Many of these new Shell owners have contacted us for information on how to deal with some of the environmental and regulatory issues they face as owners of their property. 

If any Shell dealers need further assistance during this transition period, they should contact our office at 973-376-0066 so we can put you in touch with the same MBPs who spoke to the Exxon dealers yesterday.

In an ironic twist, the meeting we held on Wednesday with the Exxon dealers came on the heels of a previously scheduled meeting with NJ DEP to discuss the future of Stage 1 and State 2 permitting.  During the meeting, DEP notified us that the state is considering changes to the permitting process.  However, it was also brought to our attention that many NJGCA Members are still renewing Phase 1 and Phase 2 permits separately.  These permits, also known as a ‘preconstruction permits’, are over $800 each. 

Rather than spend $1600, there is an alternative.  The next time your vapor recovery permits are due for a renewal, DO NOT renew your Stage 1 and Stage 2 separately.  Instead, you should obtain a general air permit.  The fee for this new permit is $410 – saving $1200 on just this one permit alone!  Call us if you have any questions.

Many of you have had DEP visit your locations, some have received hefty fines and, although people are doing a better job of complying with environmental regulations, you just be forewarned that DEP is about to start the second round of inspections.  It is their goal to visit every retail facility at least once every three years, giving them ample opportunity to hand out a violation if you are out of compliance.  What that means is that you have to continue to look sharp if you are going to avoid any fines!  If you were cited for a torn boot, ripped hoses, gas fills that accumulated debris or water or any other violation – and you are cited again – it will be considered a SECOND offense.  So for example, that rip in your vapor recovery housing that may have been a $400 fine 3 years ago will now cost you at least $800 for each ripped hose. 

To avoid any problems, you should be following the calendar we distributed from DEP.  These compliance calendars are to be filled out daily to help you stay ahead of any problems.  In fact, a part of the DEP’s inspection protocol is to make sure you are doing these inspections and marking them off.  

The way to avoid these fines is simple: Inspect your pumps and hoses every day; Replace torn or ripped boots; make sure you gas fill is always clear; etc.  Doing so will not only help you to avoid such penalties, but by making it a part of your routine, will greatly reduce the anxiety and stress of running your shop.

New Jersey taxpayers witnessed a historic event earlier this week as Governor Christie signed a public employee pension and healthcare benefit reform bill into law.  Thanks to the political courage of Senate President Steve Sweeney and Assembly Speaker Sheila Oliver, who faced incredible pressure from labor unions and members of their own party, a long-overdue change in the current system will mean that the state’s pension and benefit system (which is billions of dollars in the red) will not fall into insolvency.  That translates into enormous savings for taxpayers and will help guarantee that the state workers who earned their pensions will actually be able to collect on their benefits once they retire.

The new law will compel public employees to pay a higher percentage of their total healthcare benefits and require them to pay more toward their pensions.  In doing so, experts believe that property taxes will begin to stabilize and the strain on government budgets will begin to relax.  You can read more on this landmark law by clicking HERE

At the time of this writing, the budget process has been concluded – or so we suspect.  Governor Christie proposed a $29.7 billion budget earlier this year that was not well received by legislative leaders.  As such, the Democrat controlled legislature passed a $30.6 billion budget in both houses and sent it to the Governor for his signature.  Included in the proposal was the reinstatement of the millionaire’s tax, along with other revenue raising measures.  However, the Governor has used his Line-Item Veto powers granted to him by the Constitution to eliminate parts of their budget and reduced the final budget back to the initial $29.7 billion dollar figure.  In exercising these powers, the Governor is avoiding a government shut down, but leaders in both houses of the legislature vow to come back next week to try and override the Governor’s veto.  In order to succeed, they will need a two-thirds majority vote to overturn each line-item veto – which is unlikely to happen.

So, that means we have a budget and New Jersey’s government will be open for business for another year – unless of course the legislature is able to muster the required number of votes, but don’t hold your breath.  If anything should change, we will update you next week, but in the meantime you can read more on this by clicking HERE

Since the Governor came into office he has promised that he will tackle three large issues: fiscal discipline, pension and benefit reform for public employees, and education reform.  Having made a real and lasting impact in the first two agenda items, Governor Christie has openly stated that he will begin to focus on education reform in the months ahead.  Though he has continually been lambasted by the NJEA, the statewide teacher’s union, the Governor has found supporters in unlikely places, including urban leaders and budget hawks who want more transparency in public education, an increase in the number of charter schools, and renovating how teachers are evaluated.  One group that is trying to educate the public on the important need for reforms – Better Education for Kids, Inc. – has recently launched a website highlighting these objectives.  You can click HERE to review the details and get a better grasp of what challenges lay ahead in the fight for education reform.

Remember, though the Governor and legislative leaders have made incredible strides in only a few years to get New Jersey’s fiscal house in order – passing CAP 2.0, ushering in historic changes to the pension and benefit system, keeping a check on public spending – education reform remains a significant obstacle.  Transforming our education system is about helping our children prepare for tomorrow and giving them the tools they need in the job market.  Yes, that means giving your future employees the smarts they need to work at your business!  However, it is also about spurring a healthy business climate and retaining residents (i.e. your customers) in state.  Considering that anywhere between two-thirds and three-quarters of your local property taxes (both at your home and your business) goes to pay for public education, seeing significant reforms enacted is in your best interest.  With so much at stake, you shouldn’t be sitting on the sidelines on this one.

From all of us at NJGCA have a very Happy Fourth of July and be sure to enjoy some quality time with your friends and family!  

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

NEWS AROUND THE STATE

6/29/2011:
Opinion: Pension and benefit reform is a ‘taxpayer rescue’
Star-Ledger columnist Tom Moran penned a noteworthy piece this week following the historic passage and enactment of public employee pension and benefit reform.  In his column, Moran recounts how ‘sacred’ labor movement institutions like collective bargaining began as noble attempts to help the private sector workers, but historically did not have a foothold in the public sector until much later.  For sound fiscal reasons, traditional labor organizers warned against permitting public sector unions to form for risk of holding taxpayers hostage.  This is a must read; click above to review the full column.

6/25/2011:
Automakers Surprised: Federal Government wants 56.2 mpg average by 2025
In a move that has surprised domestic automakers, the Obama Administrations has unveiled a proposal which would require car manufacturers to have a passenger car and light truck fleet average of 56.2 miles per gallon by the middle of the next decade.  If implemented, automakers warn that the average vehicle cost will increase by $2,100 or more in order to meet the government mandate by 2025.  Click above to read more on this topic.

6/24/2011:
Congress calls on nation-wide ban on handheld cell phones while driving
The Safe Drivers Act of 2011, a bill recent introduced in the House of Representatives, create a national standard preventing all motorists from holding cell phones and other mobile devices while operating an automobile.  Supports hope that a national ban would compel drivers to use hands-free cell phone devices, which would be allowed under the proposal. Click above to read more on this legislation.

6/21/2011:
Safety Tech: Ford to add inflatable seat belts to new vehicles
In an effort to increase passenger safety and prevent serious injury during an accident, Ford Motor Company will expand the use of inflatable seat belts to new vehicles throughout its portfolio.  Initially introduced in the redesigned 2011 Ford Explorer, company officials state that the technology will now be implemented into at least two more passenger cars by next summer.  Ford says that there has been strong demand for inflatable seat belts among consumers, prompting expansion of the feature to other platforms.  

CLICK HERE TO READ MORE ARTICLES IN OUR “NEWS AROUND THE STATE” ARCHIVE 

SNAPSHOTS...

...From Wednesday, June 29th as NJGCA meets with Exxon franchisee dealers at the Crowne Plaza Hotel in Clark, New Jersey.  NJGCA organized the meeting in anticipation of an offer from Exxon which would allow these small business owners to purchase their locations. Over 70 dealers attended and heard from NJGCA Member Benefit Partners (MBPs) to help them to finance their stations and deal with legal and environmental pitfalls. 

MEMBER BENEFIT PARTNER MESSAGE

TMP Energy Solutions
Another Way to Save on Your Energy Bills

We have had a number of NJGCA members successfully reduce their rate per kWh   signing up through our energy saving program. We know it’s difficult to collect 12 months worth of previous electric bills to get an “accurate” analysis when comparing a variable rate to a fixed rate, but we now have another option available. 

This new solution is a power purchase option; the other program is still in full force and has saved members thousands of dollars. If you sign up for the power purchase option, you will be grouped with other NJGCA members until the minimum KW demand is acquired. By pooling the member’s usage together, you will be able to take advantage, as large energy users do, and receive a lower kWh rate.

Each member will receive their own contract. Each member is responsible to sign and return the agreement the day it is received in order to secure the price for their group.

Please do your due diligence, so when you receive the proposal and the agreement you will be able to make an intelligent decision.

If by chance, you still want us to assess you bills, to give you a price to compare, we will require12 months of your most recent utility bills.

There are no bills required, but we would still like to have one bill per meter on file to check account #’s, meter #’s  service addresses and other pertinent information incase there is a problem.

The term of the agreement is for 12 months. During this term period, you will have price protection against any energy price increases along with a low fixed kWh rate.

If you are interested in becoming part of this power purchase option, please contact Phil Apruzzi at the NJGCA.

Remember when you sign up your energy through the NJGCA Energy Program, TMP makes a considerable donation to the NJGCA Scholarship Fund through their proceeds. This has no affect on your rate, and costs you nothing out of pocket.

We hope to help hundreds of NJGCA members reduce their utility costs by participating in this and our other cost reduction programs.  Our purpose, in the endeavor, is to help NJGCA members lower their energy costs while supporting the NJGCA Scholarship Fund. 

Contact Phil Apruzzi at 973-376-0066 or email Phil at phil@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.