October - North Carolina Propane Gas Association

NCPGA
October 2012
NEWS | A Monthly Publication of the NC Propane Gas Association
Three Generations
at One Convention!
• 2012 Convention - One To Remember
• NCPGA 2013 Membership Directory Info Needed
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The North Carolina
Propane Gas News
John R. Jessup, Executive Director
Brenda Cole, Office Manager
Jon Carr, Lobbyist, Legal Counsel
5109 Hollyridge Drive
Raleigh, NC 27612
Ph. 919-787-8485 ● Fx. 919-781-7481
Officers
Tim Rice.........................................................President
Ken Dye................................................President-Elect
David Briles...........................................Vice President
Cyndi Kibler...................................................Secretary
Jeff Wade.........................................................Treasurer
David Parker.........................Immediate Past President
District Directors
District 2. Mike Fox....................................Waynesville
District 3. Greg Eanes..................................Greensboro
District 4. Keith Barker...................................Charlotte
District 5. Billy Foust........................................Mebane
District 6. Stewart Chance................................St. Pauls
District 7. Alex Jernigan................................Smithfield
District 8. Jo Ann Jezard..........................Elizabeth City
District 9. F. Ray Moore..............................Washington
Committee Chairs
Advisory Board........................................ David Parker
Convention..................................................Angi Harris
Education/Safety..................................Donald Godfrey
Finance..................................................George Lipford
Governmental Affairs.................................Jeff Ruffner
Membership Services...........................Doug Lawrence
NC Young Gassers............................... Stewart Chance
Promotion & Public Relations......Colin Wood-Bradley
Publication.................................................Mike Groom
Technologies/Innovations..................Armistead Mauck
Suppliers...................................................Brandon Cox
Notice
As the official publication of the NC Propane Gas Association, the NC
Propane Gas News carries authentic notice pertaining to the activities of
the Association. In other respects, statements of fact and opinion are made
on the responsibility of the authors and contributing writers alone, and do
not imply an opinion on the part of the Board of Directors, the Officers, or
the Membership.
October 2012
Advertisers
Apache LP Trucks, Inc.........................................27
Apex Propane.......................................................5
Bergquist, Inc.....................................................22
Best & Langston........................back outside cover
Cates Propane Plant Construction.........................2
Charlotte Tank Trucks.........................................19
CHS...........................................................24
Controls Inc.........................................................13
CUI...................................................................26
Dealers LP Equipment .......................................25
Gardner Marsh Gas Equipment.............................7
Gas Equipment Co...............................................5
Inergy.................................................................20
Mangums...................................................27
PETCO..............................................................21
Plains Marketing................................................23
Propane Trucks and Tanks...................................8
Thompson Gas....................................................16
Contents
Tim Rice, President’s Message...........................4
Legislative Update, by John Jessup...................6
Richard Fredenburg, NC Dept Ag..................9,11
Supplier Profiles Needed!................................12
NCPGA Award Winners...................................14
NCPGA Annual Convention Pictures..............15
How Much is Your Business Worth?.................18
NCPGA Convention Golf Pics........................22
PERC Articles ................................11, 17, 20, 25
Front Cover
The Cox Family,
Triad Propane Gas Company
Asheboro, NC
Brandon Cox, (left), Joe Cox, (center), Herbert
Cox (right), pictured on the front cover.
NC Propane Gas Association
3
-Will Rogers, 1879 - 1935
Tim Rice,
NCPGA President
Tim Rice
NCPGA President
Fellow Members:
Another convention is under our belt and what a great convention it was!
My hat goes off to Chair, Angie Harris and the Meetings & Convention Committee.
Congratulations to all the award winners:
F. Ray Moore
Dealer of the year
Steve Ward
Supplier of the year
Doug Lawrence
Supplier of the year
10
Also congratulations to all the golf winners.
As I stated in my Presidential Presentation at the Convention I would like to thank all the members
who serve on our committees. We will be sending out a sign-up sheet shortly asking you to serve on
a committee.
I strongly ask you to join a committee of your choice. These committees are the back bone of our great
association and we can only move into the future with strong working committee members. Remember,
you might have that thought in your head that turns out to be another great success for this industry.
NC Propane Gas Association
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As we move into the future we will be working on the State Perc and, tax equalization bill. I strongly
ask that you support this bill and if you have any questions or concerns, please give John Jessup or
myself a call. We need to be well informed and all in agreement on these two projects.
Again I would like to thank each and every one that voted for me (and even those who didn’t). I
appreciate the confidence you have in me to run this great association this year. I also would like to
thank John and Brenda for all your support and assistance.
May 2012
ALL YOU HAVE TO DO IS REGISTER FOR A
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Tim Rice
NCPGA President
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4
NC Propane Gas Association
October 2012
October 2012
NC Propane Gas Association
5
John R. Jessup,
Executive Director
NCPGA Legislative Update
John Jessup
NCPGA Executive Director
NCPGA State PERC
For the past 8 months we have been developing
a bill to create our own state PERC in NC. NCPGA
Executive Board members reached out to the
members at the 8 district meetings held this
summer all over the great state of NC. Phone calls,
emails, meetings and a straw poll at last month’s
convention have all concluded that our membership
is overwhelmingly in support of a state PERC. Our
Lobbyist, Jon Carr, and I will continue to fine tune
the bill and identify sponsors in the House and
Senate for the bill.
One overwhelming request of the state PERC
was to create a consistent statewide marketing
campaign to combat other energy sources that
are attacking our industry. We cannot sit on the
sidelines and continue to get pummeled by negative
advertising that attacks our industry. There was
also great interest in being able to continue to fund
our Safety and Education Director position as well
as consistent funding for the safe appliance, mower
and duty to warn rebate programs.
We still have time to make adjustments to
the bill and the final plan, but the 2013 legislative
session is not that far away. If you have any
questions or concerns please give me or anyone on
the executive committee a call and we will be happy
to discuss it with you.
Toothpick’s and Shrimp
As a lobbyist for NCPGA, I attend many
legislative fundraisers. Although I enjoy eating the
cheese cubes and sweet and sour meatball trays, my
main purpose is getting a few moments with key
legislators to discuss our industry’s issues and to let
6
them know that our association is supporting them.
At a recent event I discovered that Rep David Lewis
from Dunn, NC runs a large farm that is using
thousands of gallons of propane to dry his tobacco
crop. It is refreshing to have a legislator that has
a personal interest in our industry and knows his
propane dealer on a first name basis.
King Chicken
I recently attended my first ever Rotary Club
meeting. I was invited by F. Ray Moore to speak
in Washington (North Carolina) at the King
Chicken restaurant. The topic of my speech was
“Propane vs. Natural gas… the Rest of the Story.”
The decision to switch a subdivision or town
from Propane to Natural Gas is not a slam dunk
if the residents have all of the facts. The Natural
Gas companies tend to leave out information on:
monthly facilities charges, weather normalization,
heat factor adjustments, under sized lines,
appliances that cannot be converted, and the state
that their lawn may be in when they are finished
installing the lines. Ray and I pointed out all these
facts to the Rotary and they were very appreciative.
Please contact me if you would like me to make a
presentation in your town or if you would like a
copy of the NG vs. Propane presentation. You don’t
have to roll over when Natural Gas comes to your
town, but you do have to start fighting early.
John Jessup,
NCPGA Executive Director
NC Propane Gas Association
October 2012
7
NC Propane Gas Association
September
August 2012
Richard Fredenburg,
NCDA&CS
Inspection Details
Richard Fredenburg, North Carolina Department of
Agriculture and Consumer Services
A
s with any new program or database, we are
learning new things almost every day, in
part, through feedback from you.
A good example is how sometimes, as the
language of the law or code changes, the concise
statements on the inspection forms to guide the
inspectors may not quite properly reflect the
requirements. While the short statements sufficed in
the past, the potential for penalties often results in
closer scrutiny of an inspector’s findings. That does
not surprise us.
With your comments, we gain valuable
knowledge and insight, becoming more careful
about how we look at the code requirements. Some
of the items on our inspection checklist have been
there for many years. We are finding out that we
need to fine-tune some of our inspection items.
The first one is a recent thing. Earlier this year,
we worked with the N.C. Propane Gas Association
to make sure the operating and maintenance
procedures meet the intent of the requirements stated
in Chapter 14 of the code. We all agreed that using
the Operations and Maintenance Handbook from
Propane Education and Research Council was the
best way to go. The handbook states more than once
that the procedures listed should be appropriate for
the facility. The strongest statement is, “Therefore,
each section should be thoroughly reviewed by the
owners and operators to include all applicable data,
information and procedural steps. Materials that
are not applicable to your particular facility can be
removed.”
Recently, we were challenged on a finding about
a listed procedure that we were told was not practiced
at that site. We felt justified in saying the procedure
was in error because there was no piece of equipment
onsite that would perform the operation and an
12
8
NC Propane Gas Association
NC Propane Gas Association
employee who
accompanied
the inspector
said
that
procedure
was not used.
The challenge
was that the
procedure
Richard Fredenburg
would be used
NC Dept of Agiculture and
in an unusual
Consumer Services
case and that the
piece of equipment would be brought in when it
was needed. We rethought our position and decided
that when unusual operations are to be included
in the procedures, they should be prefaced with a
qualifying statement of when the operation would
be performed and a clear statement that it is not a
normal practice. In that sense, including it in the
listing is planning ahead.
Another challenge was issued when an inspector
cited evidence of smoking too close to a transfer
point. The dealer’s claim was that storm water carried
cigarette butts to that location, not that employees
were smoking during a transfer. Reviewing the
code requirements, we decided that this item will
remain, but will become one of those items that we
will identify as a potential problem and bring to a
dealer’s attention, but will not be subject to penalty.
However, the next item, source of ignition control,
is an observed violation that carries a penalty the
first time cited. This is not a change for the second
item. Inspectors will record a violation when any of
the listed sources of ignition are observed during a
transfer.
One more area of concern I want to mention is
Item 1w on the bulk plant inspection form, which
requires identifying the tank or property as to who
owns or uses it. After a complaint, we looked more
closely at the wording in the General Statute. The
statute requires that a tank with a regulator in a
service system identify the supplier by an attached
tag, label or other marking. Therefore, tanks at a
May 2012
October 2012
October 2012
NC Propane Gas Association
9
R. Fredenburg., cont. p9
service system identify the supplier by an attached tag,
label or other marking. Therefore, tanks at a dealer’s
bulk plant that do not supply fuel to be used onsite,
but only distributed to other locations, do not have to
be identified. Tanks used to supply heating or processes
on site (farms, industrial sites, schools, etc.) do have to
identify the supplier. It is certainly an aid to emergency
responders to have owner information handy when they
respond to an incident at a bulk plant, but this item
will be removed from any penalty considerations for
distribution-only sites.
Please note, and I give you fair warning, this is
probably the most common violation we find at your
customers’ locations. When the new system starts to
generate warning and penalty letters for “miscellaneous
inspections,” including those at residences and businesses,
do not be surprised to see this item quite often. I suggest
you take steps now to verify that all of your locations are
properly labeled, including the underground ones.
Just as the LP-Gas Code evolves, we need to have
our inspection program follow suit. Sometimes, the
wording gets slightly modified before the effect on a
requirement is realized. That happened several years
ago when a sentence about an exception that listed
three requirements was reworded into three bulleted
items. It was widely accepted that the bulleted items
were independent. It was not until the requirement was
researched that the co-dependence of those items was
determined and confirmed by National Fire Protection
Association staff.
We try to do honest, code-supported inspections.
We anticipate there being challenges to our findings,
and we will take steps to make a change if we are wrong.
But, please keep in mind that the purpose of these
inspections and codes is safety -- safety for you, safety
for your employees and safety for your customers.
Oh, one more thing. We get calls or notices that an
appeal will be or has been filed on a penalty that has been
imposed. That is within their rights. However, we strongly
encourage that they speak with Stephen Benjamin first
and see if negotiation is a better option. Often, after a
conversation where justification is presented, Stephen
will reduce the penalty to a more palatable level. If an
official appeal has been filed in accordance with the
instructions in the penalty letter, then the appealer
must go through the effort and possible expense of
withdrawing the appeal. We are going to make it clearer
in the penalty letter that this negotiation is a better first
step. Stephen will document the discussion and send a
letter with a modified penalty.
April 2012
10
NC Propane
Propane Gas
NC
GasAssociation
Association
17
October 2012
October 2012
WE NEED YOUR NEWS
The NCPGA News is pleased to publish
what is going on in and around North
Carolina for its members.
Please remember that we would be happy
to feature your news to share with other
members, by simply submitting it to the
NCPGA Executive Director, John Jessup
for consideration.
Email jjessup@ncpga.org
- Courtesy of PERC at propanecouncil.org
DHL Express deploys
autogas vehicles
100
DHL Express is deploying 100 propane autogaspowered Ford E-250 cargo vans in Texas, Missouri,
Georgia, California and Florida today in a move
aimed at curbing emissions and reducing costs.
DHL already was using propane autogas vehicles
in Louisiana, Ohio and Tennessee
Marketers should connect with
homebuilders, PERC exec says
Propane marketers should connect with
homebuilders associations to expand their client
base and boost their market visibility, said Bridget
Scanlon, residential and commercial programs
director at the Propane Education & Research
Council. “Once you establish a network of
members, your ability to generate opportunities
and leads will quickly provide a return on your
investment. ... You have potential clients in every
member that owns a business, a home or a lawn
mower,” she said.
Kentucky propane dealer sees
opportunity to sell propanepowered mowers
Kentucky-based Irvington Gas sees an opportunity
to market propane-powered lawnmowers by
partnering with lawn-care firms. A challenge,
however, is in distributing the mowers to customers,
said company Vice President Charlie Russ.
NC Propane Gas Association
11
NCPGA
Publications Committee
/ Suppliers Committee
Mike Groom
Publications Chair
Christian Rich
2012 Suppliers Chair
Greetings Fellow Suppliers,
We were approached several months ago by a board member that admitted that there are many of the supplier
members that he does not know who they are or what their company does. So we developed a “Supplier Profile”.
The purpose of the profile is to help you share information with the members of NCPGA about your company,
your position, and yourself. This is a great way for all NCPGA members to get to know you better and to help
strengthen your relationships with other members.
Last month at the annual convention during the suppliers meeting, we discussed the supplier profile form.
Everyone agreed that it was a great idea and it was decided that the best way to advertise the profiles is to include
them as part of the 2013 Membership Directory.
To simplify the process for you, we have created an electronic form that you fill in and submit. To find the
“Supplier Profile Form”, go to www.ncpga.org .
Once you fill in the form, you will be able to download your logo and/or photo to include on your 8 ½ X 11 page
of the 2013 Membership Directory.
If you have any questions, feel free to call the Association at 919-787-8485.
Thank you for your continued support of NCPGA!
Mike GroomChristian Rich
Publications Committee Chair 2012 Suppliers Committee Chair
12
NC Propane Gas Association
October 2012
October 2012
NC Propane Gas Association
13
2012 NCPGA ANNUAL CONVENTION
Awards presented by NCPGA President David Parker
Thanks for Attending the Convention
2012 Dealer of the Year - F. Ray Moore, Jr.
F. Ray Moore, Jr.
F. Ray Moore Oil
The Dealer of The Year is recognized by their peers for their body of work throughout the year
that promotes and supports the advancement of our association, its members and our industry.
The involvement of this individual serving our industry this year has been quite remarkable. He
participated in many NCPGA activities including: “Propane Village” Open house; Education
Summit; and, Board meetings in Raleigh, Charlotte and Wrightsville Beach.
He is a member of our Governmental Affairs committee and a generous contributor to the
NCPGA PAC! He is heavily involved with our Tax equalization efforts and in developing the
framework for our State PERC bill. He has also actively pursued and developed strategies for
protecting our industry from the expansion of natural gas.
He’s given his time and talents to lobby for our industry locally in Raleigh for Legislative Day
and nationally in Washington DC for Propane Days, where he was seen hanging out with his
friend Warren Buffett.
While serving as district 9 director for the appropriately named “The Coastal High-Tiders” he helped coordinate relief
efforts in his district for members affected by Hurricane Irene.
One of his employees described him as “Always level headed and calm and he always asks the same question in dealing with
tough issues “Is it right…and is it fair” .
2012 Supplier of the Year - Steve Ward
The Supplier of The Year is recognized by their peers for their body of work throughout the
year. This work is often done behind the scenes in order to benefit and support our association
and its members.
This year winner knows that, often times, it’s not what you know but who you know. He
introduced our Executive Director to his engineering contacts at the NC State Solar Center. This
remarkably led to our association being awarded two grant projects totaling more than $550,000!
This money was used to pay for much needed repairs and upgrades to the roof, HVAC, lighting,
windows and insulation of the building which resulted in energy saving upgrades to our 10,000
sq foot building which is saving the association 30% off of its monthly energy bill.
Steve Ward
This upgrade included converting our buildings hot water and heating system from electricity to
Gardner Marsh
propane which this person donated his time and talent to personally help install the gas lines and
vent pipe! He even connected the gas lines to the new vent free gas logs in the association reception area.
This person was also a valuable member of the design team for Propane Village. His knowledge expertise and sometimes his
sweat and blood helped transform an overgrown wooded lot into what is now a significant addition and valuable attraction to
our training center that will help promote our industry for a long time to come.
This member also actively serves on the NCPGA Safety and Education committee and was instrumental in planning this year’s
Education Summit. He was even selected to serve as a member of the “Expert Panel” for the Summit.
Not one to rest on his laurels, his latest project, coming up in October, is Autogas 101 technician certification classes. He
helped coordinate these with the Texas Railroad Commission’s Autogas instructor, the Independent Auto Garage Owners and
our Association.
President’s Award - Doug Lawrence
This Presidents Award goes to a member who went above and beyond on a project that was two
years in the making. Doug was on the design team for propane village, but in addition to helping
plan and design propane village this member helped fill propane village. By unabashedly asking for
donations from vendors and suppliers Doug was able to acquire: 2 Vortex Torches, 2 Mushroom
heaters, a 32 inch fire stacked stone fire pit, an outdoor firebox and log set, A Monessen hearth and
log set for the foyer, 2 Corn-hole games,
Doug thought we needed a “Statement” piece for the Village and it is still unbelievable to anyone
that has seen it. An RH Peterson Stainless Steel Fire Magic Grill so big that we needed a crane to get
it set in place. We have used it several times for several events and it is definitely a statement piece!
Doug Lawrence
CUI Distribution & Equipment Thanks for all your work on this project!
and for Making More Great Memories
Roush CleanTech plans to ramp
up autogas product offerings
- Courtesy of PERC at propanecouncil.org
Roush CleanTech plans to expand its product
offerings of propane autogas technologies in a bid to
provide more options for fleet operators who want
to transition to autogas. “Our plan is to have the full
Ford commercial lineup for propane autogas. We will
be launching propane autogas versions of the E-450,
550, and eventually 650. We are moving up the GVW
scale because our customers are telling us to go that
way. They also want to get away from diesel. We
started with lighter duty vehicles and are moving to
medium duty,” said Todd Mouw, Roush CleanTech’s
vice president of sales and marketing.
Emergency responders mitigate
leak at Hess’ N.J. refinery
Emergency responders were able to stop a
propane leak Wednesday at Hess’ refinery in Port
Reading, N.J. “Emergency responders at the scene are
working to disperse the vapors safely. Nonessential
personnel have been evacuated from the facility,
while refining and gasoline and distillate product
loading operations are continuing as normal. There
have been no injuries,” said Jon Pepper, Hess vice
president of corporate communication.
NewPropaneEnergyUpdateAvailable
A new Propane Energy Update has been posted,
bringing the latest in training, safety information,
products and analysis of the trends affecting the
residential construction industry. This month the
Update features stories on venting tankless water
heaters, a builder’s dream home fueled by propane
and small-construction equipment that runs on
propane. Please go to www.propanecouncil.org to
see more information.
Bob-Cat Joins PERC’s Mower
Dealer Demo Program
14
16
NC Propane Gas Association
NC Propane Gas Association
May 2012
October 2012
Mower manufacturer Bob-Cat has joined
Husqvarna and Kubota as participants in the
Propane Education & Research Council’s Dealer
Demonstration program. Propane-fueled mowers
from the manufacturers are on display at about 100
mower dealers in 31 states and available for test use.
Dealers get a discount on a mower purchase and
landscape contractors can test the mower.
October 2012
Top Landscaping Firm Chooses
Propane-Fueled Mowers
One of the 100 largest landscaping firms in the
country is getting greener and has purchased 84 propanefueled lawn mowers, replacing nearly 90 percent of its
entire gasoline mower fleet.
Denver-based CoCal Landscape chose propanepowered mowers because the domestic-fuel reduces
emissions compared with gasoline-fueled mowers.
Compared with gasoline, propane offers a 50 percent
reduction in greenhouse gas emissions, cuts carbon
monoxide by more than 80 percent, and produces fewer
ground-level ozone precursors and particulate matter.
“I want to be good to the environment,” and using
a cleaner burning fuel is part of that, said Jesus ‘Chuy’
Medrano, cofounder and owner of CoCal.
Propane also offers costs savings for landscape
contractors, says Medrano. He estimates CoCal saves
about $1 a gallon by using propane instead of gasoline
to fuel his mowers.
Since Medrano started CoCal 20 years ago it has
grown to employ about 300, and generates about $11
million in annual revenues. Medrano is past president
of the trade organization National Hispanic Landscape
Alliance. Hispanics make up an estimated two-thirds of
landscape industry employees nationwide.
CoCal spent more than $500,000 to modernize its
fleet of commercial mowers to run on propane
The Colorado Propane Gas Association worked
with CoCal on the switch to propane, and will reimburse
CoCal $105,000 through a mower incentive program it
operates, said Baron Glassgow, executive director of the
association. “Mr. Medrano is a leader among his peers
and CoCal has one of the largest mower fleets in Denver,”
said Glassgow. “Working with an industry leader gives
us the opportunity to demonstrate to other commercial
mowers how well propane works.”
CoCal is using John Deere 647A and 667A stand-on
units. Deere converted them to propane using a system
certified by the Environmental Protection Agency
and the California Air Resources Board, the strictest
standards in the nation.
Propane offers commercial mowers other advantages
besides price. Because of their lower emissions they can
typically operate during ozone action days, making them
more efficient than gas-powered mowers. In addition,
there is virtually no fuel spillage and loss. The EPA
estimates that 17 million gallons of gasoline are spilled
every year while refueling landscape equipment.
NC Propane Gas Association
17
HOW MUCH IS
YOUR BUSINESS WORTH
BY DEREK CARAWAN, AAMS
A couple of months ago I wrote an article on
Succession Planning, where I made mention of getting
your business evaluated. Now I want to delve deeper.
Whether you want a “rough” number or a more
realistic one, it boils down to using the resources that
are available to you and knowing where to find these
resources. I thought the best source of information
would be a CPA/CVA (Certified Valuation Analyst).
Since the NCPGA membership is statewide in scope,
perhaps the best resource for finding a CPA/CVA is
http://www.nacva.com/DIR/. This site will allow you
to search by city and zip code. I recently ran a search
for Ashville, NC. The search returned the names of
over 20 CPA/CVAs. Chris Tikvart, a partner with
Neal, Bradsher and Taylor, is a CPA/CVA (Certified
Valuation Analyst). He is one of a couple of CVAs in
the Triangle area. I recently interviewed Chris for this
article and asked him a series of questions.
What are 3 to 5 things that business owners need
to know regarding appraisals/valuations of their
business? “The owners should check their ego at the
door. The numbers could come in lower than you
think. Get some professional advice from a CPA
or attorney who is a licensed business evaluator.
Understand the tax ramifications of a stock sale versus
an outright sale of the company. Some business brokers
will use a ‘rule of thumb’ approach to value a business.
It may be advisable to go a little deeper in order to get a
good formal written evaluation.”
How long does the process typically take? “A good
formal written evaluation could take 3 months to
process.”
Should an evaluation be done even if there is no
foreseeable event? “No, but a CPA with the proper
skillsets (not all may have all of these skills) or a CVA
can provide some general calculations. If you are
thinking about selling a business 3 to 5 years from
now, then yes, it may make sense to initiate a thorough
process to evaluate the business. This process can help
you shore up some areas of the business that may be
weak.”
18
What things can make the most significant impact,
positive or negative, on the value of a company? This
is where Chris covered a lot of information. Maybe
we can provide some more detail on this in a future
article. But one of the many things that he said
regarded the difference between “Personal Goodwill”
and “Practice Goodwill”. He expounded on this
by saying basically that if a company is successful
because of the owners relationships to customers
and in the owner’s absence the business would suffer
dramatically, then such a business might be very hard
to sell. However, if there is a way to somehow shift this
goodwill from the owner to the company, then the
valuation of the company could increase a great deal.
This is an excellent reason why you would want to
consider hiring a CVA 3 to 5 years prior to a sale date.
It could take that long to transfer personal goodwill to
practice goodwill.
If an owner is considering selling, should they try to
do it this year for tax reasons? “Don’t make decisions
just based on taxes alone. Base it on value. Sell when
conditions are right for selling. Taxes are not primary
but they are a part of the consideration process.”
In the best of circumstances, how long should it
take to finalize a sale? “It depends on the size and
complexity of the business. But, a non-disclosure
agreement should be in place before the interested
party begins their due diligence. This is followed by
price negotiations and getting the attorneys to draft the
proper documents.”
Derek Carawan is a LPL Financial Advisor and LPL Registered Principal with
Carawan Financial Partners, Inc. / Securities offered through LPL Financial/ Member
FINRA/SIPC and may be reached at, www.carawanfp.com, 919-870-8181 or derek.
carawan@lpl.com
These views are those of the author and should not be construed as investment
advice. All information is believed to be from reliable sources; however we make
no representation as to its completeness or accuracy. Please consult your Financial
Advisor for further information.
The opinions voiced in this material are for general information only and are not
intended to provide specific advice or recommendations for any individual. To
determine which investment(s) may be appropriate for you, consult your financial
advisor prior to investing. All performance referenced is historical and is no
guarantee of future results. All indices are unmanaged and cannot be invested into
directly.
TRACKING #1-100103
NC Propane Gas Association
October 2012
May 2012
October 2012
NC Propane Gas Association
NC Propane Gas Association
19
19
Conversion Mowers Added to
Propane Incentive Program
An increased use of cleaner domestic fuels is
a bipartisan-supported issue, said Alleyn Harned,
and attended the event. Why? Because they recog- executive director of Virginia Clean Cities, who
Landscape
contractors
can passage
get up toof10this
incentives
each
qualified
propane mower
converworksfor
with
dozens
of alternative
fuel fleets.
Fleets
nize
the importance
of the
legisla-of $500
sion
through
a
propane
research
program
throughout
the
country
are
interested
in
increased
tion to their company s bottom line. The incentives
from this bill will encourage propane autogas ve- use of propane autogas, and alternative fuel incenWASHINGTON
(August 20,
The Propane
& Research
Council (PERC) has extives enable
the market.
hicle
purchases, translating
into2012)
more—propane
sales Education
panded its popular Propane Mower Incentive Program, which
offers
a
$1,000
for the purchase
Gasoline and diesel incentive
have traditionally
experiacross the country.
of qualified new propane-fueled mowers, to include a enced
$500 incentive
for qualified
mowers
thatit have
a
marketplace
monopoly
when
comes
to
During our trip, our group met with a total of 73
been converted to run on propane, PERC President and CEO Roy Willis announced today.
congressional offices. We spent time with Sen. Tom consumer and corporate fleet vehicle sales. Yet
with propane autogas we have a domestic, clean
Carper
(DE),
Rep.$500
Kenny
Marchant
(TX), Rep.
To qualify
for the
incentive,
a conversion
mower must be a commercial, heavy-duty mower that
anda dedicated
cost-efficient
fuel that ismower,
currently
Adam
Smith
(WA),forand
legislative
has been
operated
lesstop
than
10 hours,aides
and itwho,
must be
propane-fueled
notavailable,
a dualand
fleets
across
the
country
have
taken
notice since
like
myself,
domestically
produced
alternafueled
model.think
The mower
conversion
kit must
meet Environmental Protection Agency or California
when the
incentivesmanufacturer’s
were first introduced.
tive
such Board
as natural
gas and propane
autogas,
Air fuels,
Resources
requirements,
and it cannot
void2005
the original
equipment
warranty
To arrive at a meeting on Capitol Hill with an
are
in transitioning the current state of our naon key
the engine.
industry manufacturer, a distributer and an end user
tion s security and economy.
message
of Congress,
Propane-fueled
mowers
cost
less
to
operate
than
gasoline-fueled
mowers
owing to
to Members
greater usage
during
Denison Landscaping s Josh Denison, who cur- sends a powerful
ozoneruns
action
days, convenient
fuel delivery,
theRichard
virtual elimination
of fuelPropane
spillage and
said
Roldan, National
Gasloss.
Assorently
propane
autogas inon-site
his Maryland
fleet, and
Propane
mowers
reduce
greenhouse
gas
emissions
by
nearly
half
compared
with
gasoline
mowers
and
met with Rep. Jason Altmire (PA). I wanted to let ciation s president and CEO. This is how change
meet or exceed
Environmental
Agency emissions
Propane is made here in the
happensrequirements.
in Washington.
Congressman
Altmire
know thatProtection
I would seriously
United
States,
and
using
it
instead
of
imported
fuel
can
help
increase
the
nation’s
If passed, the Propane energy
GAS security.
Act could help
consider a fleet conversion and have propane autogas vehicles running in my Pittsburgh office in
PERC launched its Propane Mower Incentive Program with a $1,000 incentive for mower operators
the near future if these incentives are in place, said
cont..p25
continued on page 18
Denison.
“Domestic Fuel” cont. from page 15
Greg Narron - President
Clayton Pridgen - Sales
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BOBTAIL RENTAL & LEASING
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V, K, I, P INSPECTIONS
METER CALIBRATION
TANK TRAILERS
LP DISPENSING UNITS
NBIC “R” STAMP REPAIRS
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16
NC Propane Gas Association
NC Propane Gas Association
May 2012
October 2012
October 2012
NC Propane
Gas Association
Serving
the LP Industry
Since 1954
21
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NC Propane Gas Association
September 2012
20
October 2012
NC Propane Gas Association
NC Propane Gas Association
May 2012
23
Conversion Mowers Added to Propane Incentive Program, (cont p20)
that purchase a new propane-fueled mower equipped with a 60- to 72- inch cutting deck. That incentive
program is still open to applicants.
Pop Quiz
A single applicant
company
canthis
get incentives
to quiz
10 mowers,
including
both
new
conversion
So you think
you read
magazine?for
Tryupthe
below and
see how
well
youand
score!
mowers. Program participants of new and conversion mowers must report to PERC on the usage and
1. Myofcompany
is in NCPGA
operation
the equipment
for oneDistrict
mowing______
season.and my District Director’s name is __________.
2.
NCPGA’s
Legislative
Day
is
______________.
“The strong response to our original mower incentive convinced us to expand the program to include
3. Howmowers,
many vehicles
worldwide
use Autogas
(propane
conversion
” Willis says.
“Propane-fueled
mowers
helpmotor
lawn fuel)?________________
and landscape professionals save
4. When
flare a tank,
your local
emergency
you will be conducting
a helpmoney
and cutyou
emissions.
The tell
program
rewards
them forresponders
choosing athat
propane-fueled
mower while
________________.
ing PERC
to meet its research goals.”
5. If passed, the Propane GAS Act could help boost our nation’s economy while generating up to
____________
The $1,000
incentivenew
for ajobs.
new mower can be combined with any manufacturer rebates and state propane
gas association
rebates
for which
is eligible.
6. Extra credit:
Mary’s
fatherthe
hascustomer
five daughters:
1. Nana, 2. Nene, 3. Nini, 4. Nono. What is the
name of the fifth daughter? _______________________
Major manufacturers offering propane-fueled mowers include Ariens/Gravely, Bobcat, Briggs and Stratton (including Snapper Pro and Ferris brands), Cub Cadet, Dixie Chopper, Exmark, Husqvarna, Kubota,
Scag, Toro, and Zipper.
to last
month’s
Quiz
For a list of eligible mowers under Answers
the incentive
program
andPop
requirements
for conversion mowers visit
1.
10.
Page
9,
left
column
www.propanecouncil.org
2. out
Maywhether
29, 2012.
10-under
heading
“Legislative
Day.”
To find
youPage
qualify
to takethe
part
in the Propane
Mower
Incentive Program, or for questions
3.
Federal
Energy
Regulating
Commission.
Page
16,
right
column.
about application guidelines, please contact Alison Dimond at 877-411-3243, extension 801, or Jesse
4. Thursday,
May 31.
top oftothe
form.
Marcus
at 202-452-8975;
or Page
send 19,
an email
mowerincentive@propane.com.
5. Pipeline and Hazardous Materials Safety Administration. Page 26, right column
.
April 2012
24
NC Propane Gas Association
NC Propane Gas Association
7
October 2012
22
October 2012
NC Propane Gas Association
NC Propane Gas Association
May 2012
25
Come see the Greener side of Sears
FEDERAL WAY, WA – Sears Holdings plans to deploy 27 new Roush CleanTech Ford E-250 cargo vans fueled by
propane autogas in its Sears Home Service (SHS) fleet in the Seattle area for in-home service and repair visits.
The company’s Stu Reed, Sears Holdings senior vice president and president, Sears Home Services, said this
deployment is to determine whether the company can scale this alternative-fuel vehicle rollout to its entire fleet of 10,000
Home Service vans.
“Propane autogas has proven safe, reliable and environmentally friendly, and we look forward to putting this fuel to
work in our fleet,” said Stu Reed, Sears Holdings senior vice president and president, Sears Home Services. “The conversion
of 27 of our product repair vans to propane autogas is one of several initiatives we have underway to improve the efficiency
of our fleet of 10,000 Home Services vans. If we get the type of efficiencies we expect by converting these vans to Roush
CleanTech propane autogas we could scale this to all 10,000 service vans. Other environmental steps SHS has taken
include: a ‘no idling’ policy and installing ‘economizer’ devices on 4,800 of our service vans to ensure our technicians drive
at speeds that optimize fuel efficiency.”
Roush reported that dignitaries and legislators from Washington state, including State Representative Katrina Asay
and Federal Way City Councilmembers Dini Duclos and Linda Kochmar, recognized Sears Holdings’ environmental
commitment during the official unveiling ceremony.
Beyond purchasing the new vehicles, Roush added that Ferrellgas installed three 1,000-gallon refueling stations at two
of Sears’ full-line store parking lots and at one parts and repair facility in Seattle, Federal Way, and Lacey at no cost as part
of this program.
This program is part of Sears’ sustainability efforts, as it won the Environmental Protection Agency’s highest honor,
the “Corporate Commitment Award” for World-Class Programs in Energy Management and Product Retailing. Sears’
other strategic efforts include a continuous focus on reducing greenhouse gas emissions, lessening waste generation while
maximizing diversion from landfills, and optimizing energy reduction efforts across its entire network.
Roush noted the benefits of fueling with propane autogas, including reductions in exhaust emissions with up to 25% less
greenhouse gases, 20% less nitrogen oxide and up to 60% less carbon monoxide than gasoline-powered vehicles. The company
added that historically, propane autogas costs 30% to 40% less per gallon than gasoline and up to 50% less than diesel.
Article courtesy of Automotive Fleet Magazine
Heavy Hauling and Equipment Relocation Division
Specializing in Large Propane Tank Loading and Transport
Corporate Offices
P.O. Box 7177
Wilson, NC 27895
year.
Show me another effort that has
potential2012
to
NC Propane Gas
Association
October
produce these results.
boost our nation’s economy while generating up to
The good news is that during our trip to Wash-
26 continued from page 16
May 2012
September 2012
1-800-869-8973
or (252) 237-4256
Contact
Hugh Bryan or Luke Mangum
for Pricing and Availability
www.mangumsinc.net
NC Propane Gas Association
NC Propane Gas Association
23
27
North Carolina Propane Gas Association
5109 Hollyridge Dr.
Raleigh, NC 27612