Commercial Management Group

CALIFORNIA ADOPTS REVOLUTIONARY NEW CLEAN CAR STANDARDS

Commercial Management Group, Inc. — Fri, 24 Feb 2012 02:05:03 +0000

On January 27, 2012, the California Air Resources Board (“ARB”) notched a potential victory in the battle against greenhouse gas (“GhG”) emissions. In a unanimous vote, ARB adopted the Advanced Clean Cars (“ACC”) regulatory package, which is a program designed to deliver cleaner air, reduce GhG emissions, and help build the market for fuel cell and battery-electric vehicles. At the opening of the ARB hearing on this historic vote, Mary Nichols, ARB Chairman, predicted:

This program will make the cleanest cars and the new technologies commonplace. The Advance Clean Cars package will help clean our air, help us fight climate change, and perhaps most important for the average citizen, save thousands of dollars over the life of the vehicles. It also gives us the ability to brag that we are the clean car capital of the world.

The robust ACC program combines various automotive regulations into a package of standards and initiatives applicable to model years 2015-2025. The ACC program is designed to address two important environmental and public health threats – climate change and unhealthy levels of smog and particulate pollution – by substantially reducing, and potentially eliminating, heat-trapping emissions. The program is composed of three separate, yet equally important prongs: Zero Emission Vehicle Program, LEV III Standards, and Clean Fuel Outlet Program.

Zero Emission Vehicles Program

First, the ACC program touts the Zero Emissions Vehicle (“ZEV”) regulation as the “technology forcing piece” of the package. This regulation requires a minimum number of battery electric, fuel cell electric, and plug-in hybrid vehicles to be sold in California. The anticipated target for this regulation is 1.4 million ZEV by 2025, accounting for 15% of the new vehicles sold. Future emissions-reduction efforts will need to be even more ambitious, as ARB predicts that 87% of the cars on the road will need to be ZEV to achieve the goal of reducing GhG emissions to 80% below 1990 levels by 2050. The plug-in hybrid car is the presumed transitional model for the next twenty years.

The new ZEV regulation simplifies the method for credit allocation based on zero emission ranges. Automobile manufactures will receive 1.5 credits for 100-mile battery electric vehicles and 3.5 credits for 300-mile fuel-cell electric vehicles. The credit allocation method also allows automobile makers to bank ZEV credits indefinitely for use in later years.

Additionally, a special provision has been adopted that will allow automobile manufacturers to overcomply with GhG fleet standards (as discussed below) to offset ZEV requirements for 2018-2022. However, in order to be eligible, manufacturers must buy a certain percentage each of the four years.

“These robust, zero-emission vehicle standards will provide the market assurance automakers and the energy industry need to transform the electric vehicle in to a mass-market success,” said Don Anair, senior engineer with the Union of Concerned Scientists’ Clean Vehicles program. “This landmark initiative will strengthen California’s emerging electric vehicles industry, creating jobs and making zero-emission vehicles more affordable for consumers.”

LEV III Standards

The second piece of the package is ACC’s LEV III regulations that control soot, smog-causing pollutants and GhG emission. LEV III aims to reduce fleet average emissions of new passenger cars, light-duty trucks, and medium duty passenger vehicles to super ultra-low-emission vehicle levels by 2025. In addition, the life durability requirements for vehicles have been increased from 120,000 to 150,000 miles. LEV III regulations also implement zero fuel evaporative emission standards for passenger cars and light-duty trucks, and more stringent evaporative standards for model year 2017-2025 medium-duty vehicles. Furthermore, GhG emissions will be reduced to 166 grams per mile – a 34% reduction from 2016 levels – and the standard will be achieved through more efficient drive trains and engines, the use of stronger and lighter materials, and other, already existing technologies.

These regulations were developed over the past three years through extensive coordination with the federal government and the automobile industry itself. This cooperative effort included a joint fact-finding process with shared technical and engineering studies. The program has been designed to harmonize with and parallel the federal rules proposed by the Obama administration in the summer of 2011.

Clean Fuels Outlet Program

Finally, the third prong of the program is the Clean Fuels Outlet (“CFO”) regulation, which is intended to ensure that ultra-clean fuels, like hydrogen, are available to meet vehicle demands associated with the special ZEV “overcompliance” provision. The CFO regulation ensures that adequate fueling infrastructure will be available by requiring construction of alternative fuel stations. This requirement is triggered when there are 20,000 alternative fuel vehicles using a particular fuel. The regulation also includes a modification that lowers the activation trigger to 10,000 vehicles for air basins. This is intended to complement auto manufacturers’ early commercialization plans to market fuel cell vehicles. The regulation does include a penalty provision for manufacturers’ noncompliance, if ARB is able to substantiate a claim that the manufacturer(s) knowingly falsified a report.

Currently automobile manufacturers, industrial gas suppliers, non-government organizations and the State of California are negotiating a Memorandum of Agreement (“MoA”) to support up to 100 clean fuel stations as an alternative to the CFO. If the MoA process is successful, then the requirement to build clean fuel stations will end. However, if the MoA process does not succeed, then the CFO requirements remain in force.

End Results

In hard numbers, by 2025, the ACC program is designed to deliver:

34% decrease in GhG emissions from cars including a 52 million-ton reduction of GhG emissions by 2025 and a cumulative 870 million-ton reduction of GhG through 2050;
1.4 million ZEV and plug-in hybrid vehicles on Californian roads by 2025;
1 in every 7 new cars sold in California will be a ZEV or plug-in hybrid (roughly 15.4%);
$5 billion savings for California drivers in operating costs; and
75% reduction in smog-forming emissions.

Other ACC Program Benefits

Not only is the ACC program expected to benefit California air quality, the program is also designed to increase State revenue. ARB analysts estimate that the program will save Californians $22 billion through 2025. Even after paying for the clean car technology, individual consumers are projected to save $4,000-$6,000 over the average life of a car sold in 2025. Specifically, the added cost of the technological improvements will be fully recovered from fuel savings in approximately the first three years of the car’s ownership. In addition, by 2025, the program is projected to create 21,000 new jobs across the State as consumers spend less on gas and more on other consumer goods. It remains to be seen whether these projections will materialize.

This article is also posted on Sheppard Mullin’s Climate Change & Clean Technology Blog.

Have you visited Coffee Kaanapali yet?

Commercial Management Group, Inc. — Thu, 09 Feb 2012 22:37:57 +0000

” Coffee Kaanapali is more than a place to enjoy a great coffee; it is a destination.”

A new addition to Fountaingrove Village at 2097 Stagecoach Road, Coffee Kaapapali is quickly becoming known as the destination for the best lattes and cappucinos in town, as well for their wide variety of organic and fair trade coffees. Coffee Kaanapali Hawaian coffee beans are shipped from Hawaii on Monday, are roasted on Tuesday and served to you on Wednesday – can’t get much fresher than that. In addition to the superior coffee drinks and large variety of teas, you will find an assortment of great bites to choose from.

The strong aroma of rich coffee, the surround sound of Hawaiian music, the video of waves crashing on the shore, and the comfortable indoor and outdoor seating will transport you away from the hustle of a busy day and help you slow down and dream of a relaxing island vacation.

Read below some of the reviews from satisfied customers:

“Love, love, love,love this fun find. I suggest the hazelnut latte or affagaddo, sitting outside and relaxing. Pastries are always fresh and YUMMY ” – Janel N., Rohnert Park

“This is a great find. Coffee is great, food is great and the staff is wonderful! As an added bonus, from time to time, they have Aloha Friday, with “local sounds” of musicians and dancers. I hope they do it more often.” – Lorene R., Windsor

“Great staff, excellent coffee drinks and relaxing Hawaiian music. Also, free WiFi for paying customers that is smoking fast!” -Daniel W., Santa Rosa

What’s Really in Your Mattress? Visit the experts at The Futon Shop and find out

Commercial Management Group, Inc. — Tue, 17 Jan 2012 00:50:32 +0000

Commercial Management Group is happy to welcome The Futon Shop as one of our most recent tenants. The Futon Shop has recently relocated to 2724 Santa Rosa Avenue, in Santa Rosa, and if you are concerned about the environment and what sort of chemicals you might be breathing during your slumber, their expert professionals are happy to answer your questions in a pleasant, professional and pressure free atmosphere.

Did you know that conventional mattresses are very likely to contain chemicals, some potentially toxic to humans and/or harmful to the environment? Most of these chemical compounds have a cloud surrounding the information on the possible harms they can cause. The way to go green is to choose a mattress with fewer chemicals or no chemicals. The ideal mattress would have low emissions, no chlorofluorocarbons (ozone depleters), no PBDEs, no heavy metals, no formaldehyde, and no phthalates. Chlorine and bromine containing compounds, mercury, lead, heavy metals and formaldehyde are some of the chemicals found in mattresses today. But what are these chemicals and how do they affect the environment and you and where can you get a mattress that is chemical free? There are many companies out there that say they adhere to a chemical free standard but until you do your research you can never be sure. One such company is The Futon Shop. The Futon Shop makes every mattress they sell in house. Owner Suzanne Diamond is proud of the fact that they manufacture natural organic futon mattresses and green futon mattresses by combining the most pure & natural elements inside their organic futons to build the most comfortable & natural organic mattresses, sofa bed mattresses & futon mattresses. USDA certified Organic cotton futon mattresses, American grown long crimp Virgin Wool mattresses, chemically free 100% pure Dunlop Latex mattresses and beds, VOC free soy-based foam futon mattresses (CertiPUR-US certified), GOTS certified Organic cotton mattress pad protectors, and all their inner springs bed mattresses are made from recycled steel right here in the US. They are also a proud founding member of the Sustainable Furniture Council and a member of the Organic Trade Association. They have been manufacturing American made natural and organic mattresses for over 30 years and have over 2 million happy customers.

In accordance with Federal law, The Futon Shop does use a borate to ensure all mattresses are fire retardant. They will gladly omit the Borate in any mattress purchase order with a note from your doctor or chiropractor.

One Landlord’s View Toward Distressed Tenants

Commercial Management Group, Inc. — Wed, 21 Sep 2011 00:05:40 +0000

Many of us feel well qualified to write our own article regarding distressed tenants. After all we have had to deal with our share of tenants calling in to request rent reductions, particularly during the past several years. This article will focus on the landlord’s view weighing the cost benefit of working with distressed tenants.

Above all else the landlord must maximize cash flow. This makes the landlord’s position stronger, makes the property stronger which is then passed to the tenants. However, Landlords must also do the”right thing”. This builds credibility with all that do business with the landlord and the property; this should be every landlord’s mission, including yours. Lastly, the landlord must take responsibility for the property and everything that goes on during ownership.

Cash flow is easily diagnosed when thought of cash incoming and cash outgoing. Therefore to simplify the cost benefit of reducing a tenant’s cash obligations we only need to calculate the reduction in cash from the tenant and increase or decrease of landlord’s cash.

Doing the right thing, whether implementing green technology in order to lower utility costs or being gracious while in a debate over the property’s color scheme, will cultivate positive influences and promote involvement from those around us. Landlords can begin by respecting the tenant through listening with an open mind to the tenant’s request. Continue by making a calculated decision based on the data provided by the tenant and your knowledge of the property. Landlord may focus on near term relief by limiting
the length of the rent reduction or by recouping the reduced amount later in
the lease or some form of “blend and extend”.

Sometimes the landlord must make difficult choices such as defaulting the tenant; most of us know someone who just can’t accept when it’s time to quit. Acquiescing to the tenant’s request for rent relief is not always going to be best for the tenant and often not best for the property. These decisions are more easily made when you ask for and receive trustworthy financials, a complete list of tenant’s short and long term obligations and
tenant’s plan to sustain the ongoing concern. Do not be afraid to demand some
or all of the above and to withhold your decision until received.

If you hired a large property management company that ignores your small property because it is too small, or your leasing agent is in the Alps more often than at your property, it may be time to research other opportunities. If a tenant with questionable
credit requests a rent reduction you may want to consider the tenant’s history
and moral judgment. If the rents are below market you may consider how to maximize
rents in other areas of the property or allow a failing tenant to move on. If
the rents are higher than market you may consider trading rents for concessions
or future consideration, such as adding term.

A responsible landlord must make difficult decisions with regards to management, whether self-managed or the choice to hire a property manager, to accept a tenant with questionable credit or rents above or below market, which all fall back to the owner of the property. In short, do what is necessary to strengthen the property; consistently do the right thing and be responsible for you and for the property.

One of our newest projects

Commercial Management Group, Inc. — Fri, 09 Sep 2011 00:00:24 +0000

http://healdsburg.patch.com/articles/2-roundabouts-proposed-for-central-healdsburg-area

Add to Your Investment in Property Management

Commercial Management Group, Inc. — Fri, 26 Aug 2011 21:54:54 +0000

Investment property management continues to emerge as one of the vital
aspects of a successful realty investment. In spite of the currently dull phase
of the housing market, investing in properties is still considered one of the
most profitable and stable activities. To keep all realty investments
profitable, it is important to ensure efficient assets management.

Managing a property that includes managing of any type of tenants can be a daunting task. While purchasing realty is one thing, effective management is quite another. This is especially true if the owner or the investor does not possess management skills like the management professionals have. These experts can help maintain the investments efficiently and also manage good tenant relationships.

While management of commercial properties does include screening prospective tenants and handpicking the suitable ones, it does not necessarily stop there. The property has to be well maintained and there has to be an impeccable system of accountability related to all financial transactions of its equity growth as well as the cash flow generated by renting it out to tenants.

What Makes Management Professionals Indispensable

Most property owners who stress on saving money usually end up employing a single professional for investment management. It is difficult for a single individual even a qualified one to attend to all the responsibilities associated with management of properties, supervise its maintenance and turn it into a profitable investment. This is why the primary concern of an owner or an investor must be to hire an established company that can offer outstanding services to keep all kinds of properties functioning at the highest possible levels.

A good management company will connect the investor with an experienced manager who will handle all matters related to the property. The professional responsible for investment property management will also act as the intermediary between the investor, tenants and the management company. The manager will also make sure that the investor receives accurate financial statements regarding the income generated from the property regularly.

A person who has invested in a commercial property would definitely require a professional who is an expert is in his field and is aware of the financial goals of the investor. Since all properties are able to generate profits, a property manager
must treat all properties as serious business. Therefore, before actually
hiring an agency for investment management, the investor must create a great
business plan with the management company. If the company seems to treat each investment as real business, they are likely to handle properties efficiently
by enhancing their value and lowering potential risks.

Obviously, there is a lot at stake while choosing a company to manage realty investments and keep it running profitably. Therefore, it is important that the company and their overall business ethics inspire confidence and trust in the investor so that he is completely comfortable in assigning the property to the company handling investment property management.

Making the right decision regarding the company selected for managing properties and evaluating the experience of this company can directly influence the success of a realty investment. As long as owners or investors choose the best management professionals, they can create a profitable realty business.

CMG’s Mid Summer Deck Party

Commercial Management Group, Inc. — Sat, 06 Aug 2011 00:13:50 +0000

Click to view slideshow.

Why Santa Rosa’s General Plan should NOT be amended for Sprouts.

Commercial Management Group, Inc. — Mon, 01 Aug 2011 23:30:10 +0000

We concur with Oliver’s Markets, Traverso’s, Pacific Market and Community Market that the General Plan as adopted by Santa Rosa should not be amended to allow a retail development at the corner of Mendocino and Bicentennial Parkway which would include a 30,000 square foot Sprouts natural foods store. Sprouts is an Arizona based company which would be taking direct market share from the above local stores, as the population in north Santa Rosa is not expected to increase significantly in the near future. These businesses all made decisions to locate where they are based on the General Plan in place, so changing the General Plan for an out of town developer and tenant would directly impact local businesses. And not just the businesses but the employees relying on tough to find jobs, many local suppliers of produce, meats, and other north coast food products.

Now don’t get us wrong, we are supportive of free market economics and competition. Whole Foods’ opening last fall in Coddingtown was a blow to all of these local businesses also, but it was allowed in the existing zoning underlying Coddingtown, so they had to fight to maintain market share after Whole Foods arrived. This is generally healthy as it weeds out inferior product and operations. There are many other existing retail locations Sprouts could consider in Santa Rosa where their use would be allowed under existing zoning. So lets stick with the General Plan adopted November 3, 2009, and allow the free market economy and competition to all play by the same rules. In particular, lets not change the General Plan for an out of town developer with an out of town tenant who will cause our existing locally owned businesses to suffer, or worse, fail.

Welcome!

Commercial Management Group, Inc. — Mon, 11 Jul 2011 23:19:41 +0000

Welcome to Commercial Management Group’s new blog page.