Place: L’Olivier Restaurant, 465 Davis Court, San Francisco in the Club Room. (415-981-7824) The restaurant is easily accessible via BART (Embarcadero Station) and $5 valet parking is available.

NOTE: The dinner is being provided FREE OF CHARGE for all candidates and attending members, guests are partly subsidized at $37, including tax and tip. So please come and network with experienced, successful appraisers in your discipline—and perhaps find a mentor. The program will:

· offer tips to help you advance from Associate/Candidate to Accredited Senior Appraiser

· explain what is expected in the advancement reports for each discipline

· provide access to checklists that your discipline uses to evaluate reports

· provide a FREE COPY of the 2007-2008 Chapter Membership Directory

If you only come to one event a year, this is THE event! Meet and network with fellow appraisers in all disciplines. Renew friendships and share your experiences.

The Chapter Board Meeting will be held at 5:30 pm. You are welcome to attend and bring your ideas for future seminars and meetings. Becoming more involved with ASA at the Chapter and International level is a sound career-building strategy.

All attendees, candidates and members, should contact Carole Richbourg, by phone: 408-219-1175 or email: carole@finejewelryappraiser.com. This was a sold out event last year, so Please RSVP as soon as possible as the room only holds 50 persons.

President’s Message

Robin J. Erdmann, ASA MRICS MAI

New Region 5 Governor

The most important announcement I have to make in this message is that Greg Ansel, ASA, will be replacing Jim Brown, ASA as your new Region 5 representative on the Board of Governors. I am told that the election results in all races were very close, including Region 5, but I won’t know the exact tally for another week or so.

Just like Jim, Greg is a Business Valuation discipline member. I am sure that Greg will follow in Jim’s footsteps and be an excellent representative for the chapter, and for Region 5. Please give Greg your support over the next four years.

State of ASA

Our May chapter meeting was anchored by Region 5 Governor Jim Brown’s presentation on the State of ASA. Jim provided some data on ASA and its trends, the status of chapters, and issues with which the organization is wrestling. Total membership in ASA is 4,807. Of this group, 2,701 members are designated or approximately 55%. Fellows (FASA) total 54 members of this group.

Among the five disciplines, Business Valuation is the strongest, with 2,076 members (43%). Machinery and Technical Services is the second largest discipline, with 1.065 ,members (22%), followed by Real Property at 928 (19%), Personal Property at 596 (12%), Gems & Jewelry has 107 members (2%), and the latest discipline, Appraisal Review Management is 35 members (<1%).

Membership has declined about 3% since 2007.

The organization is now managed on a “discipline-centric” basis, which means each discipline is essentially responsible for its own revenue generation and expenditures. Membership dues and education are primary sources of revenue.

The advancement process for candidates has been elevated to the national level from the chapter level. Too often, there were timing issues within many chapters that resulted in candidate’s paperwork languishing. Many chapters are not very active anymore, and candidates were struggling to get their paperwork acted upon in a timely manner.

At the local chapter level, lobbying is a primary concern, since many bills affecting appraisers, especially RP appraisers, are dominated by language offered up by the Appraisal Institute, especially the use of MAI only appraisers for state government opportunities.

Several chapters, or chapter branches in California and Nevada had become inactive, and these have been folded into the Northern California chapter. The branches have been receiving member dues, but have not been actively using them for any real purpose. The Northern California chapter, by the way, is one of the three financially strongest chapters in the country, with reserves now exceeding $30,000. (As your chapter president, one of my goals was to grow this reserve larger, enough to hire a part-time administrative assistant, but we are not at that level – yet!)

If you didn’t know, chapters are also separate legal entities from the national organization.

Surveys were carried out to ascertain the role of chapters within the overall organization, and in many cases, their role was unclear. Active participation in chapters is only about 15%. This participation level is common to many organizations around the country. One option is for chapters to become virtual, and not meet face-to-face with members, but many members like the personal networking that occurs at face-to-face meetings. The challenge is to find meeting programs that will provide benefits to members across disciplines.

Closing Comments

Finally, I want to thank everyone who has helped make this a successful year for this chapter. Our officers: Doug Baxter, VP; Bob Lentz, ASA, Treasurer; Gil Mitchell, ASA, Secretary; and, Will Schnitzer, ASA, Ex-Officio. Notably, Bob took on the responsibility of creating a PayPal account for us so we could register for meetings and seminars using a credit card.

Then there are our Discipline Directors: Nancy Stacy, ASA, Gems & Jewelry; Roger Rapport, ASA, Personal Property; Gil Mitchell, ASA, Machinery & Technical Specialties; Will Schnitzer, ASA, Real Property; and, Jim Schilt, ASA, Business Valuation. Jim Schilt passed away a few months ago, and he will be missed. Bob Lentz has been acting as interim Director. Roger Rapport suffered a serious illness recently, and we are all waiting for his speedy recovery. Together with Nancy and Roger, we traveled up to Napa to make a presentation to the Napa Valley Cruisers last fall. That was quite fun.

Thanks to Charles Warren, ASA, who serves tirelessly as our legislative liaison, and writes the Legislative Corner column for our newsletter. And special thanks to Karen Mann, ASA, who generously hosted our Board retreat last August at her home in Discovery Bay. It went a long way toward getting our chapter off on the right foot this past year.

Seminars: Special kudos also go to Nancy Stacy, ASA, and Carol Richbourg, ASA for organizing, and Nancy teaching, a Gems & Jewelry seminar; to Bob Podwalny, ASA, and Jack Young for organizing, and Bob teaching, a report writing seminar this spring; to Dave Lewis, ASA, for putting together a seminar on Zoning & Site Analysis that is yet to be presented; to Emily Newell, AM, and Doug Baxter, for organizing the upcoming Filoli seminar, to James McCann, ASA and Ray Mattison, ASA, for organizing the ASA booth at the American Bar Association meeting in Monterey (and appreciation goes to all who helped staff the booth); and to Carol Richbourg, who has undertaken the chores of organizing the upcoming Candidates Night.

Finally, this chapter has succeeded as much as it has this past year because of the terrific behind the scenes work carried out by Nancy Stacy, ASA. She has become the heart and soul of this chapter as a result of undertaking the thankless, but very important, task of publishing this newsletter, and countless seminar flyers. Without Nancy, we would not have this communication channel to keep our members informed of chapter activities and events. Without Nancy, we could not have achieved the successes that we have had this year. Nancy, thank you!

Many others have quietly scurried around behind the scenes, and I apologize if I have somehow overlooked everyone’s contributions to the chapter this year.

It has been a great year! This chapter has much for which to be thankful. The accomplishments this chapter has made this year are only scratching the surface. Much is yet to be done.

Looking ahead, I know that my successor, Doug Baxter, will carry on, and make the chapter even stronger. He already has a basketful of ideas for the coming year, and the most difficult decision may be to decide how to prioritize his options. I think that’s a good problem!

I want to thank each and every member for their support this past year. It’s been a fun ride, and I am very honored to have served as your president during this time.

Thank You!

Upcoming Events

Filoli Gardens Seminar

The chapter is sponsoring a seminar on personal property issues June 4 at Filoli Gardens. Filoli is a gorgeous facility located on the peninsula in Woodside. It is an event not to be missed! For last-minute registration, call Emily Newell at elnewellappraise@pacbell.net

June 11, of course, is Candidates Night. This is always a sold out event, so get your reservation in to Carol Richbourg as soon as possible. The room only holds 50 people, and last year we shoe-horned in 51 (I think we had a table hanging from the ceiling!)

RSVP with Carole Richbourg at carole@finejewelryappraiser.com or call her at 408-219-1175.

The chapter will be “quiet” during July and August (except for our annual Planning Retreat in August) since many are away on vacation. However, ASA is holding its International Conference July 12-15 in Orlando. It’s a good opportunity to combine continuing education credits with a family vacation to Disneyworld.

On October 5^th to 7^th San Francisco welcomes the 6th International Conference on the Valuation of Plant Machinery and Equipment at the Marriott Fisherman’s Wharf, which will draw attendees from around the world. The chapter will host a coffee break for the conference

In conjunction with that conference, the chapter will sponsor two seminars: a 15 hour USPAP seminar October 3-4, and an 8-hour Appraiser as Expert Witness seminar October 8^th. Both will be taught by highly entertaining and popular instructor, Roger Durkin, J.D., M.S., ASA. Roger, a Boston attorney, is possibly the only ASA member certified in all 5 disciplines: Business Valuation, Gems & Jewelry, Machinery & Technical Specialties, Personal Property and Real Property. Chapter member Robert Podwalny, FASA will co-instruct the expert witness seminar. Nancy Stacy has been doing all the behind-the-scenes organizing for this event.

MTS 4-day Marine Survey Course

If Nancy didn’t think she had enough to do, she is also quietly working to organize the 4-day Marine Surveying course ASA MTS 208 for the MTS crowd March 11-14, 2010. This course is designed for the non-marine professional who wants basic knowledge of the industry and for the marine professional who wants to learn more about the appraisal side of the industry. It may be taken as a 3-day seminar without the exam.

Early indications are that we could entertain attendees from as far away as Australia. As an old hand at sailing, this is one seminar that has piqued my interest. Many boaters in California will want to attend this seminar. The last time it was held in the US was in New Orleans, and it was a sellout crowd.

-Robin Erdmann, ASA MRICS MAI

2009 VINEYARD VALUATION & AG SYMPOSIUM

A comprehensive look at California’s vineyard and winegrape industry.

Wednesday Ÿ July 1, 2009

Wine & Roses Hotel Ÿ 2505 West Turner Road, Lodi 95242 Ÿ (209) 334-6570

Text Box: $185 Members (ASFMRA, ASA, AI, RICS) / $210 Non-Members

Presented by the California Chapter, ASFMRA

American Society of Farm Managers & Rural Appraisers

To Register: www.calasfmra.com/meetings.php

ASA 2009 Conference

If you have attended the ASA International Conference in the past, then you know what a rich and rewarding experience it can be. If you have not yet had the opportunity, plan to attend the 2009 Conference July 12-15, 2009; Renaissance Orlando Resort at SeaWorld, Orlando, Florida. Budget & Finance, Governors’ Meeting & Committee Meetings preceding, July 10-12

Check the ASA website at www.appraisers.org for conference details.

Wayne Kompare will conduct a Wine tasting and discussion Monday July 13 at 5:30 at the International Conference titled "Great Wines to Fit Your Wallet. Wayne will be offering 6 highly rated wines (reds and whites) from two of the hottest wine regions in the world: Argentina and Spain. Only 100 seats are open for this multidisciplinary presentation. Cost is $35.00.

Chapter Calendar

JUNE 2009

4^th ASA Filoli PP Seminar: “California Collectors”

11^th (Thur) Chapter Meeting – “Candidates’ Night”

JULY 2009

1^st-ASFMRA Vineyard Conference

ASA Conference, Orlando FL

· July 10: Budget and Finance/Executive Committee Meeting

· July 11: Board of Governors Meeting

· July 11-12: Other Committee Meetings

· July 13-15th ASA Conference Ed Sessions

No Chapter Meeting – Join us at Conference!

AUG 2009

13^th (Thur) No Chapter Meeting?

TBA - Leadership Retreat

SEPT 2009

10^th (Thur) Chapter Meeting

OCTOBER 2009

3-4^th All-discipline 15-hr USPAP, SF

4-7 MTS International Conference at Fisherman's Wharf, SF

8^th Expert Witness Seminar, SF

8^th (Thur) Chapter Meeting

NOVEMBER 2009

12^th (Thur) Chapter Meeting

DECEMBER 2009

10^th (Thur) Chapter Meeting?

JANUARY

14^TH Chapter Meeting

FEBRUARY

11^th Chapter Meeting

MARCH 2010

11-14 MTS 208

11^th Chapter Meeting

Sunshine Card

Roger Rapport, ASA our Personal Property director on the Board of Directors, suffered two severe heart attacks in the past several weeks, and spent several (I’m sure uncomfortable) weeks in the hospital. We hear that he is home now.

Chuck Warren talked to him today, and reports “Roger just called. Sounds great. Says he is on the mend. Taking it easy and getting better. Liked the book on illegal road racing very much.”

And, just in time to make this issue, Roger wrote: “Thanks very much; I am doing much better, and even if I cannot make Fioli, I am walking (slowly) doing steps (one at a time) not driving or working, but am on the mend slowly but surely.

“I wish to thank ASA for the perfect book to warm the cockles of my heart (illegal rallying and street racing). While not able to attend meetings, will keep up on the workings of my several organizations. It really helps when you know folks care. Anyway hope to see you all soon. Am on the mend and thanks for checking.” - Roger

Roger, you are in our thoughts and our prayers, and we’re looking forward to seeing you once you have your strength back.

Just know that many people care about you and appreciate all that you have given to ASA and the NorCal chapter. You were President when—or just after—I joined the Chapter in 1990 or so. How time flies!

I know how much the ASA community means to you—just know that you are very special to us, as well.

We’re looking forward to seeing you in the near future.

-Ed (but just call me Nancy)

Legislative Corner

By Charles B. Warren, ASA

So, there isn't a lot of commentary yet, but the commercial bubble is in the process of popping. How bad is it likely to be? A lot has to do with the capital structure of the companies involved. If there's enough equity, companies will survive. If there's enough business, they may wipe out their equity in Bankruptcy Court, but nominally survive. The "Ahead of The Tape" column in the Wall Street Journal 4-28-09 had some good hints.

But, as to the commercial properties themselves, what might we expect? Here's the back of my cocktail napkin. Let's say that the property was regarded as "trophy" and bought at a bubble price. That might have been something that assumed 100% occupancy and was priced to yield 3%. So, that gives a starting point of reference of 33 (1/.03*). Now, if the occupancy goes to 90% and the expected yield to 5% that falls to 18, a loss of a little less than half. A yield of 6% makes it 15, a little more than half. Half of loan value wasn't an uncommon recovery for the savings and loan foreclosures in the '90's.

That said, those who could hold on through the early '90's often recovered their positions. Wells Fargo said in about '95 that it had worked out their problem loans and earned their cost of funds. For that matter there was an argument that those liquidation sales were "distressed" and not reflective of "real" market value. The sold properties were often vacant. The ones that held on were frequently leased. Today the argument might hinge on the credit of the tenants, but that's weak when even strong companies have high borrowing costs. After all, a lease is also a form of credit. Probably the question of how or whether to value a property will hinge on whether it HAS to be valued. If not, don't. Except, maybe, appeal the property tax value.

Those who bought the S&L foreclosures often did well. That might not be quite as easy this time. As Sam Zell said in the day, "Stay alive 'til '95. Be in Heaven in '97." But as of December, 2008 he was recommending investment offshore...

* Real estate "capitalization" is more or less the opposite of a price/earnings (P/E) ratio. The formula is Value = (net) Income / (capitalization) Rate, V = I/R.

Guest Article

IFAR - What can you own, buy, or sell legally

John A. Buxton, ISA CAPP

6717 Spring Valley Road
Dallas, Texas 75254
972-239-4620 - Voice
214-789-4695 - Cell
972-239-9766 - Fax
214-556-5650 – Skype

The International Foundation for Art Research (IFAR) has stepped up in a way that should make a major contribution in helping collectors, curators, dealers, appraisers, museum directors, and the media know what can be bought, sold, or owned within the boundaries of over 100 different countries. IFAR has done a great job so far and vows to constantly update the data they have on their website which is viewable at www.ifar.org/art_law.php. In the past it was very difficult to sort through the various U.S. government websites that listed import bans, bilateral treaties, and penalties. Some other sites that provided information have been so political that it has become difficult to sort out exactly what the rules are in black and white. IFAR does not pontificate in offering the relevant legislation from country to country. It is also interesting that they have provided some case history reflecting enforcement of the laws.

You can visit John Buxton’s website and blog, and link to his newsletter at http://www.arttrak.com/

NorCal Officers

L to R: Bob Lentz, Treasurer, Gil Mitchell, Secretary; Robin Erdmann, Chapter President, Jim Brown, Region 5 Governor, Will Schnitzer, Immediate Past Chapter President, Doug Baxter, Chapter Vice-Chair

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 and Associate Directors:

Business Valuation    Jim Schilt, ASA               /    Alan Karbousky, ASA
   Gems & Jewelry     Nancy Stacy, ASA          /              Maury Woulf
                             Master Gemologist Appraiser
                  MTS     Gil Mitchell, ASA             /                           tba
Personal Property     Roger Rapport, ASA         /                           tba
      Real Property     Will Schnitzer, ASA         /                           tba

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