As the incoming President of the San Francisco chapter of the American Society of Appraisers, I am honored to serve this chapter, and even more excited about plans for the coming year.

At the outset, we have a retreat planned for officers, board members, and some of our most active members to review our goals and objectives for the coming year, including the effectiveness of our organizational structure, and means by which we can reach out and communicate more effectively with our membership. The initiatives that we will place primary emphasis on are dinner program planning and seminars within each of the five disciplines within ASA, and membership development and retention. It is our goal to grow the organization and make it stronger both financially and participatory.

Already, we have several dinner speakers lined up. In September, Will Schnitzer, ASA, our immediate past president, has retained Elyse Poppers to introduce us to the stealthy art of locating and tracing lost art. Gil Mitchell, ASA, our in-coming Secretary, and Jack Young, have lined up speakers for November to explain current CARB issues (see related article by Chuck Warren). In February, we are once again fortunate to entertain Gary Zimmerman, Economist with the San Francisco Federal Reserve, who will present us with the latest 2009 Economic Forecast. His presentation last year was invaluable, and this one is not to be missed!

Nancy Stacy, ASA, the pied piper of Gems & Jewelry, and her friends are planning four seminars this coming year that will seek to make San Francisco and our chapter the focal point for Gems & Jewelry education nationwide. I think that a dinner presentation is in the planning works, too. In fact, the chapter recently awarded a scholarship to one of her protégé’s, enabling him to take and pass his GJ205 course. He is now ready to advance to ASA and Master Gemologist Appraiser status. We’ll let you know when he achieves this landmark goal! Nancy loves to mentor fellow gemologist-appraisers, and she has so much to teach them.

Emily Newell, with the help of Doug Baxter, our incoming Vice President in the Personal Property section, has been planning a one-day seminar at Filoli Gardens for next spring. This is one of the several seminars that I really don’t want to miss.

We are also hoping to have Bob Podwalny, FASA, present a seminar for the Machinery & Technical Services (MTS) section. Well, maybe, if we can manage to pry him away from his teaching schedule in Russia, or wherever he is off globetrotting on behalf of ASA. (See his report from Moscow in Member News, this issue!)

Our Business Valuation folks have been a bit coy lately about their plans for the upcoming year, but they will surely surprise us with topics that will wow us all.

David Lewis, ASA, who many of you already know from his articles in the Appraiser’s Toolkit series, is also planning both one and half day seminars on Zoning and Site Analysis issues. He has already written the book on the subject, and he is now ready to take it on the road, with our chapter the first to have his course unveiled. Of course, his students at Santa Rosa Junior College have already had the benefit of his wealth of knowledge on this subject, as well as other real estate economics issues.

And Karen Mann, ASA, past president of what is now the San Jose Branch of the San Francisco chapter has a few dinner speaker topics up her sleeve, too. Don’t be surprised if we have a speaker on Marine appraising (boats, etc).

If we are fortunate, we may be able to entice Noreen Dornenburg, PhD, ASA (BV) to conduct a one-day seminar on Business Ethics and Practices. Noreen is a rare individual of intellectual power: her PhD from Yale is in Philosophy, yet she holds an MBA from the University of Denver (where she taught philosophy) and her ASA designation is in business valuation. She currently resides in Pittsburgh and has taught business ethics at the University of Pittsburgh, as well as business valuation for ASA (which is how I met her). Recently, she also served as Vice Chair of the Appraisal Standards Board, where she was a strong supporter of strengthening USPAP’s interpretation for business valuation.

Our chapter also participates in government relations at the state level. Charles Warren, ASA, tends to take the lead in this area for our chapter, and Chuck will be reporting back to us – and you – as to political issues affecting us in Sacramento. (See the lead article in this issue of the Newsletter.)

Since the failure of unification with the Appraisal Institute (AI) and the American Society of Farm Managers and Rural Appraisers (ASFMRA), our role and activity in government relations becomes even more important. However, our continued involvement and interaction with these two institutions is of paramount importance going forward. I am hoping that we can find a common ground and joint programs with these organizations in the coming year. We have also been working to develop stronger ties with the National Association of Independent Appraisers (NAIFA).

If you haven’t noticed by now, our chapter is rich in local talent. It’s our goal to showcase the strengths this chapter has to offer.

Whew! That’s a lot to bite off. And that’s just scratching the surface. There’s more to come! But what you should know is that we, as an organization, are all volunteers. We work selflessly to strengthen the organization overall, and therefore, add value to your designation and membership in ASA. It takes everyone’s support to make this chapter and organization successful. So, we can always use a helping hand. Come to dinners (they are only $35 – the chapter picks up the extra cost). Have an idea for a dinner program? Let us know. Want to work on a committee in some form? Let us know. We are only as strong a chapter as you allow us to be by your support and participation.

We look forward to seeing all of you this coming year.

Robin J. Erdmann, MAI, ASA

American Society of Appraisers

President, San Francisco Chapter

California Legislative Issues

By Charles B. Warren, ASA

The California Appraisers' Council (CAC) and the California Coalition of Appraisers (CCA) were founded in anticipation of real estate appraiser licensing which followed the savings and loan bubble of the 1980's. CAC is a talking shop to identify issues that will affect appraisers, often real property appraisers as they are the ones who are licensed. CCA is the lobbying arm. Both presently are ASA-only although membership was wider in the past. To some extent the defections are classic "free riding", taking advantage of our ongoing interest. To some extent they are because of differing objectives. One of the other appraiser representatives also has the mortgage bankers as a lobbying client.

Both meet twice a year. The usual routine is to have one meeting in Northern California (Sacramento) and one in Southern (Burbank). The meetings usually divide into CAC in the morning and CCA in the afternoon. We have been privileged at CAC to have frequent briefings from the California State Office of Real Estate Appraisers (OREA) in the Northern California meetings.

In the last few years we have been involved in trying to promote non-discrimination in state contracting between licensed appraisers having different designations. A similar effort has been to head off inappropriate qualification requirements. Why should a business, machinery or personal property appraiser have to hold a real estate appraisal license or real property designation?

Last year we had some unexpected success. There was a thinly disguised attempt by the mortgage banker' lobbyist to foist the all blame for "predetermined values" on appraisers. A slight rewording now allows appraisers to point out to the relevant regulators when other parties in the lending process are attempting to exert improper influence on them.

We also had some disappointment when a bill providing equal consideration to designated members of all Appraisal Foundation sponsoring appraisal organizations was vetoed at the last minute.

The CAC report for the moment is that AB’s 1867 (non discrimination among designations) and 1285 (training standards for conservation easement valuation) are progressing. Non-discrimination is a pretty obvious concern. Why should one appraisal organization offer their members privileged access to public contracts? Conservation easements have become an issue both because of their acquisition with public funds and because of their donation and associated tax deductions. This is exacerbated by a recent study affirming the positive value of preservation covenants enacted by a historic residential district in Texas.

Another bill, AB 2455, regarding environmental resource acquisitions is also in the works and presents no obviously obnoxious provisions. Basically, it is consistent with our efforts this year to put the concept of appraisal qualifications above the concept of membership in any specific organization.

Meantime, there have been some scandalous situations percolating in the acquisition of land by the State for environmental purposes. Some of this surfaced when two appraisers were disciplined by OREA. Apparently their appraisals were pushed through without normal review, the land acquired, and subsequently the purchase challenged in a federal False Claims Act suit. OREA had a number of problems with the work. There have been all sorts of prior and subsequent related legislative maneuvers and machinations, one of which is reported below.

In late-breaking news, Thursday, July 16th, Superior Court Judge Gail Ohanesian signed a peremptory writ and judgment vindicating one of the above appraisers, reading in part: "Judgment is entered in favor of petitioner, Paul Talmage, and against respondent, Office of Real Estate Appraisers, State of California (OREA)."

To respondent: "You are hereby commanded immediately upon receipt of the Peremptory Writ to ... 1. Set aside your decision adopted January 8, 2007, and effective February 7, 2007 in the administrative proceedings entitled "In the Matter of Accusation Against: Paul E. Talmage, [address follows]...and
2. Reconsider your actions in light of the Court's May 28, 2008 Ruling and take any further action enjoined on you by law." (Sacramento Superior Court Case No. 07CS00293) Email Paul Talmage at Talmage@DanaProperty.com if interested in further details.

Upcoming Events

ASA International Conference; NorCal Officers & Directors Retreat; September Meeting; October Meeting

ASA International Conference: A number of chapter members will be attending the ASA International Conference educational program in Minneapolis August 3-6, (preceded by four days of committee meetings). This is where most of the Society’s business is transacted, with Budget & Finance & Executive meetings, two days of Board of Governor’s meetings, and meetings of many of the 29 existing discipline and specialized committee meetings. It is a great networking opportunity, and a chance to see ASA friends from all over the world.

Sunday, August 3 also features the Chapter Officers Orientation, the President’s Mentor/Protégé Reception, and the gala Welcome Reception which is always a successful event.

Monday marks the beginning of the education sessions. At the Noon break the Awards Luncheon and Town Hall Meeting is an exciting event with awards for outstanding chapter achievements.

We’ll try to bring you some highlights next month.

NorCal Officers & Directors Retreat will be held August 15 in Discovery Bay. We will meet to give our concentrated attention to planning out a rich and varied schedule of programs and activities for the chapter.

September 11 Meeting will be a program and dinner meeting. Our immediate Past President, Will Schnitzer, has arranged for Elyse Poppers, former art appraiser and now private investigator with the James Mintz Group, to address us. She will share investigative tricks for locating lost art, tracing provenance, finding experts, witnesses and other resources through stories of real art investigations.

Founded in 1994, The Mintz Group is an investigative team that includes former investigative reporters, federal investigators and prosecutors who have the expertise and worldwide resources to handle a broad range of fact-gathering assignments.

Jim Mintz has been a corporate investigator for almost thirty years. He helped pioneer the use of sophisticated investigative resources by law firms in the late 1970s as an in-house investigator at a Washington, D.C. law firm. Newsweek said of this unique in-house group, “What sets [them] apart-and a few others around the nation-is their ability to take comprehensive looks at complicated situations and make sense out of them.”

Fortune Magazine has called Jim Mintz “The Purist” of the corporate-investigative field.

Elyse will present three case studies with research tips you can use, and share some additional resources with us. More details next month. This promises to be an intriguing program!

September 25-28 Once again, the Northern California Chapter will be hosting an

Exhibitor’s booth at the California State Bar Association Annual Conference. This year the conference will be in Monterey, September 25th through September 28th. Volunteers are needed to staff the exhibitor’s booth on Friday, September 26th, and Saturday, September 27th. This is an excellent opportunity to market yourself directly to attorneys who hire ASA appraisers. Just one new client could make the whole trip worthwhile! If you are interested in volunteering to help staff the booth, please contact James McCann by email, at: jmc1492@yahoo.com.

October 9 Meeting

November 13^th Meeting CARB and the Construction Industry Air Quality Coalition will fill us in on government standards that may affect us more than we now realize. (See Chuck Warren’s lead article.)

Hold the Date! 2009 International Appraisal Conference July 12-15, 2009; Renaissance Orlando Resort at SeaWorld, Orlando, Florida

Member News

Joanne Fong Approved for Advancement

Joanne Fong, an ASA candidate, has been approved for advancement to ASA designation status within the Business Valuation discipline by the Northern California Chapter.

Joanne currently is employed by Deloitte & Touche as a senior manager performing business valuations.

Joanne holds a BBA and MBA from the University of Michigan, and also holds the CPA and CFA designations. In addition to BV, she is active in several non-profit organizations, such as the Red Cross.

We look forward to having Joanne as an active chapter member, and to seeing her at our chapter program meetings.

Joanne’s advancement packet has been forwarded to the National Office for completion of the advancement process. Welcome, Joanne, and we look forward to seeing you!

Bob Podwalny Teaches ASA MTS Courses in Moscow

Last month Bob Podwalny, ASA taught the MTS Principle of Value course in Moscow. Here is his report from the front lines of education:

“I was teaching solo. I had 52 students. The Neo Consulting Group is the largest and fastest growing independent appraisal and consulting company in Russia. They offer a full range of appraisal services including consulting services as well. They have offices now in Moscow, St. Petersburg and Kiev and a total of 185 employees. Most of the students are fresh from the universities having degrees in finance, engineering and economics. They are the first group of this size to complete all the Machinery and Equipment Principles of Valuation courses in Russia.

“The company is offering an incentive to its students to get their ASA designation. On my next trip in August to teach, I will be meeting with the principals of NEO and Ernst & Young to help form an ASA Chapter in Moscow. The group is looking forward to an ongoing relationship with ASA and the educational programs we have to offer. BV is in discussions with them to offer courses as is the Appraisal Review and Management discipline. NEO indicated they would like these additional courses taught there before the end of the year if possible.

“The group is so busy that the students could only spend a half day each day for the class and had to work the rest of the time. Their normal workday starts at about 9 AM and lasts until 10 or 11 PM. So when I taught, I had 25 students in the morning and 27 in the afternoon. I would teach the first group and would have to repeat the lecture for the second group in the afternoon.

“The hospitality was fantastic. They could not do enough to make me welcome. It was great that I speak Russian so I would be able to communicate with the students directly. Though in class we did have two great translators doing simultaneous translation. All in all I think ASA will benefit greatly from this group becoming members.”

The class of students I had in Moscow. As you can see, the party they threw for me was great! Just thought you would like to see the group there.

Images from Moscow

Left: A cloudy day in Moscow

Below: Bob Podwalny and his MTS class in Moscow. Can you find Bob?

Tech Tips

If you are doing a good job with your web site and promoting and advertising your appraisal service, you are receiving more and more email inquiries. Answering these messages one-b y-one can take a considerable slice out of your billable time. But, as the ad says, “It doesn’t have to BEEEE that way!”

If you use Outlook to send and receive your email, select “Word” as your email editor by clicking “Tools, Options, Mail Format” on the Outlook Toolbar, and checking the appropriate box.

Open an email message and write a reply to an email inquiry that covers most of the questions you are frequently asked. I divide mine up into some general information about pricing, then some specifics under sub-headings for various intended uses.

When you are happy with your generic reply, highlight the entire message and on the toolbar select “Insert . . . AutoText . . . New” and enter a name for your new AutoText, such as “inquiry”.

In the future, when you receive an appraisal inquiry you can simply begin a Reply, then instead of writing a new response, just type in “inqu . . .” and you will be given the option in insert the related AutoText. Just “Enter” to insert your entire message, then edit or personalize as needed.

You will find this a real time-saver, and your prospective clients will appreciate your prompt and complete response!

Since I am totally reliant on Outlook and its associated Contacts, Calendar (for scheduling appointments) and Email processing, I can’t help you with other email programs. However, look around and your server may offer similar capabilities. At the very least, you could have a response saved somewhere on your computer.

Board of Directors Meeting

The Board of Directors does not meet in July. Our next scheduled meeting is the Officers & Directors Retreat on August 15.

NorCal Officers

L	L to R: Bob Lentz, Gil Mitchell, Robin Erdmann, Jim Brown (Region 5 Governor), Will Schnitzer, Doug Baxter

Chapter officers:

Chapter President Robin J. Erdmann, ASA (RP)

Chapter Vice President Douglas S. Baxter (PP)

Chapter Secretary Gil Mitchell, ASA (MTS)

Chapter Treasurer Robert P. Lentz III, ASA (BV)

Chapter Past Chair William C. Schnitzer, ASA (RP)

Discipline directors:

Business Valuation ? (need a volunteer)

Gems & Jewelry Nancy Stacy

Machinery & Tech Spcl. Gil Mitchell
Real Property Will Schnitzer

Personal Property Roger Rapport

Anyone interested in being an active participant in the chapter should contact Robin J. Erdmann, MAI ASA at robinerdmann@comcast.net

Support Your Newsletter!

Please send Member News, Upcoming Events and article of interest to fellow members to Nancy Stacy at nancy@appraiser.net. We’d love to include you in the newsletter!