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 partly subsidized by the chapter, so the cost is a low $37 for members, candidates and spouses, $60 for non-members, and includes dinner. RSVP NOW please to Secretary Jack Young at jack@norcalvaluation.com and let him know you are coming. Do not reply to the Newsletter address—Jack is the one who needs to know!

Judge Richard Livermore

Our November 12^th program will be presented by Richard Livermore, active Supervising Judge in the Superior Court of California, on “A Good vs. Bad Expert Witness from a Judge’s Perspective” at the November 12 ASA dinner meeting sponsored by the BV discipline.

This will give you the input of what the Judge hears and how he sees expert witnesses. You will have the opportunity to ask a judge your expert witnessing questions. Be sure to RSVP in advance with Jack Young at jack@norcalvaluation.com (530 219-7900) as space may be limited.

Whether you are a seasoned expert witness or just want to learn more about how the courts view appraisers, this is a rare opportunity to hear first-hand from an experienced judge. You will gain new insights into becoming an even better appraiser.

- John Barnet, AM

President’s Message

By Doug Baxter

The San Francisco chapter has been busy this Fall with three successful programs offered by Roger Durkin, ASA, J.D. We were major sponsors of the MTS International Conference that was held here at Fisherman’s Wharf bringing together Machinery and Technical Specialty appraisers from as far away as Australia, Canada and Kenya. We sponsored a USPAP 2-day seminar, a 1-day Expert Witness seminar, and Roger addressed our October dinner meeting on Narrative Report Writing. Special thanks go out to Nancy Stacy and Bob Podwalny for their time in their planning and logistics.

Thanks to all who attended last month’s successful meeting and I was pleased with the turnout for Roger Durkin’s presentation on Narrative Report Writing illustrating the importance of clarity and accuracy in reports. I look forward to reading his two books and appreciated the real-life demonstration of reports with problematic issues involved in recent lawsuits!

The San Francisco chapter is looking for ways to help members in this economy and the Board is eager to review member’s submissions for scholarships for members seeking to advance through ASA courses and professional continuing education. The amount will depend upon the candidates/members need and the type of program considered. To submit applications please contact your Discipline Director (see sidebar) or me.

I look forward to seeing some of you at the Fall Antiques Show beginning on October 28^th at Fort Mason and running until the end of the month. This program benefiting Enterprise for High School Students brings together some of the best art and antique dealers from all over the world as well as a lecture series. Visit the site at http://www.sffas.org/.

The Chapter programs will continue on November 12 at L’Olivier restaurant in San Francisco with Judge Richard Livermore continuing our expert witness series, and then onto a festive December 10^th meeting with Tony Correia discussing the wine industry.

Another upcoming event, sponsored by the local chapter of the Gemological Institute of America, will appeal particularly to GJ ad PP members and is open to all disciplines. The Founders of the Hallmark Research Institute (HRI), William Whetstone, Danusia Niklewicz, ASA and Lindy Matula, ASA (San Francisco Chapter member) have released their first volume of a series on World Hallmarks. The response to this release was overwhelming, and the book sold out its first printing in four months! A second edition is in the works.

The evening of November 20^th Bill and Danusia will present “French & Russian Hallmarks” at Bonham’s and Butterfields in San Francisco. There will be a special Fine & Salon Jewelry and Watches auction preview and mixer beginning at 5:30 followed by the Hallmarks presentation from 7:00 to 8:30pm. This is sure to be popular event. For questions and reservations contacts are Suzanne Martinez at 415-982-2213 or Lynne Arkin at Bonham’s in San Francisco, 415-861-7500. Attendees are eligible for one hour CE credit. $20/person will be collected at the door.

Finally, we are all waiting for the last stages of the ASA National Headquarters website to be up and running by the end of the year. Each member should check his or her current information and designation to confirm an accurate listing!

Upcoming Events

December Program: Vines & Wines: A Market Perspective

The California wine industry repeatedly suffers a dramatic cycle of supply and demand, an endless möbius loop, driving wine, grape and vineyard prices up and down, in response to the immutable laws of supply and demand. The cycle tends to play itself out every ten years or so, sometimes longer, sometimes shorter, but almost always the same. Today, the historical cycle has fallen prey to the aftermath of the global financial crisis, and vintners find themselves in a brave new world, faced with imposing challenges. What does this mean for the California Wine business, where do we find ourselves, today, and where will we go from here? Tony Correia, our speaker will address current conditions and recent trends in the wine industry, historical patterns of wine and grape prices, and the relationships of those prices to vineyard and land markets in the major wine regions of California.

Tony Correia, ARA, MRICS

Tony Correia is widely recognized as a leading authority on the valuation of vineyards and wineries. He holds the professional designations of Accredited Rural Appraiser (ARA) and Professional Member of the Royal Institution of Chartered Surveyors (MRICS). He is the former president of Correia - Xavier, Inc., and is an instructor of valuation courses and seminars throughout the nation and Mexico, and is also a frequent public speaker on agricultural, appraisal, taxation, and estate planning issues, water rights, and the vineyard and wine industries. Tony is also qualified as an Expert Witness in many local and Federal courts in California, Arizona and Nevada.

After undergraduate work at Saint Mary’s College of California and Syracuse University, Tony graduated from California State University, Fresno, with a major and post-graduate work in English and a second major in Russian. Prior pursuits include former lives as a grape grower, partner in a large commercial real estate brokerage, various government positions, including a tour as an IRS examiner, and as a military intelligence analyst, cryptologist, and linguist. He now lives in Sonoma, with his wife Stephanie, and enjoys travel, great literature and music, fast cars, slow cooking, gardening, the study of wine, and the pursuit of knowledge.

Tony Correia, ARA, MRICS

Correia-Xavier, Incorporated

Sonoma Office: 707.933.9915

E-mail : tonyc@c-x.com

Alternate Phones: 800.841.5502, ext. # 1; or 559.277.7474, ext. # 1

Websites: www.calwineland.com; www.c-x.com

ASA BV Committee 2009 Fair Value Summit Friday, November 13

American Society of Appraisers Business Valuation Committee Presents:

2009 FAIR VALUE SUMMIT – SAN FRANCISCO

Friday, November 13, 2009
7:30 AM – 5:00 PM
7.5 Hours Continuing Education Credit
Offices of KPMG San Francisco; 55 Second Street, Suite 1400; San Francisco, CA 94105

Early Registration: $220 per non-member
Registration After October 15, 2009: $250 per non-member

Click here to register.
For registration questions, please contact Madelyn Piretti at mpiretti@HL.com.

UNDERSTANDING THE INTRICACIES OF FRENCH AND RUSSIAN HALLMARKS

France and Russia are two of the most important jewelry and collectible objet- producing countries in the world, with some of the most widely recognized, yet frequently misinterpreted hallmarks on antique jewelry and precious metal articles. There is far more to French and Russian hallmarks than meets the eye. Important information is often overlooked, incorrectly identified, or just simply misunderstood. Through a visual presentation, Bill Whetstone and Danusia Niklewicz, ASA will explain some of the complexities of both French and Russian hallmarks from the mid 19^th century to date. This advanced hallmarking lecture is both interesting and informative, and will provide new insight to these fascinating marks.

Based on research from their recently released publication:

“World Hallmarks, Vol. I, Europe, 19^th to 21^st Centuries,”

Whetstone and Niklewicz will also offer a short update of the new marks being used by these countries today.

The local GIA Alumni chapter and Bonham’s & Butterfields are sponsoring the team of Whetstone and Niklewicz, passionate lecturers who enthusiastically share information with all jewelry historians, whether new to the study or seasoned professionals.

Friday November 20^th, 2009; Bonham’s and Butterfields

220 San Bruno Ave. San Francisco

Reservations: Suzanne Martinez at 415-982-2213 or Lynne Arkin at 415-861-7500

5:30 Fine Jewelry & Watches Auction Preview: Wine and Cheese will be served

7:00 Lecture

$20 will be collected at the door

See Calendar (below) for other scheduled events

Business Loans Available

Small Business Loans Available to Eligible Appraisers

As part of the American Recovery and Reinvestment Act of 2009, the Small Business Administration (SBA) has been allocated $730 million to provide aid to small businesses affected by the current credit crunch, including appraisal firms.

The SBA instituted the America’s Recovery Capital (ARC) loan program, which makes available deferred-payment loans for up to $35,000, to give struggling small businesses temporary financial relief to keep their doors open and get cash flow back on track.

For more information about the programs offered by the SBA under the Recovery Act, including the ARC loan program, click here.

Legislative Corner

By Chuck Warren

“Commercial Real Estate Debt Won't Be the Next Shoe to Drop”, economists say . . . so maybe it will be a boot?

An analysis of: http://retailtrafficmag.com/news/comercial-real-estate-debt-fear-misplaced/ posted on RetailTrafficMag.com

The only good news is that most of the loans in question were not securitized and spread through the financial system as cash-equivalent. So we're much less likely to find German state pension funds writing down their assets to reflect a lack of marketability. The ratings monopoly won't be directly implicated. The mega-banks might be under the heel of the falling footgear, but not dead center as they were with houses. A sub-heading here is that most or all of these loans were either portfolio or, maybe, participated. Not being securitized, their collectibility won't be affected by the Landmark decision or its sequels (http://www.kscourts.org/Cases-and-Opinions/opinions/supct/2009/20090828/98489.htm).

Therefore, finally, loan losses are limited to the cost of foreclosing and reselling the properties securing them.

The bad news is multi-faceted. Start with FDIC. FDIC has both a management and funding problem arising from the rapid deterioration of smaller banks. This has apparently led to a policy of "extend and pretend" for loans which are current. Obviously banks which have marginal capital aren't going to be eager lenders, so one element of widespread economic recovery is in jeopardy. (As an aside, 2006 guidance on commercial property lending wasn't exactly pro-active. The bubble was inflating pretty noticeably at that point. Nor can over a trillion dollars of maturing loans simply be ignored. At this point a substantial fraction of that is not secured by present property values (http://www.charlesbwarren.com/napkin.html).

Probably the best point in this article is that loans originated before 2005 may still be reasonably well secured. The question remains whether we're dealing with a rollover shortfall of $250 billion or $750 billion. In either case, look at the megabanks, now subsidiaries of either the Fed or the Treasury to have a competitive advantage over the next two or three years. But this is not unmitigated good news for them, either. They will probably be imposed upon to absorb a good number of problematic regional banks. In the process, their returns will be diluted by the problems they have to digest. As a bonus, banking competition will be reduced.

The article suggests that the additional capital to pay down mortgages can easily be raised through REITs. If true, I would hate to be the REIT investor. The term "dilutive" comes to mind. A lot of REIT performance this year has, again, been the ignorant, nonchalant, or naive chasing yield in a low interest rate environment. The term "hot money" comes to mind. While this has been a good window for smart money to exit commercial real estate, the market's appetite is likely to be limited as dilution hits dividends. The rising crescendo of negative comment on the sector won't help either.

NorCal Chapter-Sponsored Seminars a Great Success

By Bob Podwalny

The multidiscipline USPAP 15 hour course held in San Francisco over October 3-4, 2009 at the Fisherman’s Wharf Marriott was a great success. There were 31 attendees representing all the various disciplines and several countries. Rodger Durkin, the instructor, made the time spent very interesting and the subject was presented in a meaningful manner. The participants expressed that they got a lot better understanding of the changes that have been made over time along with the reasoning behind them. Roger’s presentation stimulated much discussion and participation from the audience adding to the learning process by bringing in actual case studies along with a legal perspective. He also pointed out the most common misconceptions appraisers have regarding compliance with the requirements of USPAP. Some of the most important include what should and should not be included in the Assumptions and Limiting Conditions and what the Consulting Standards mean and where they apply.

The Expert Witness Seminar sponsored by the Northern California Chapter was also a success. There were 27 participants attending the day-long presentation at the Fisherman’s Wharf Marriott on October 8. The participants represented all of the ASA disciplines; interestingly enough there was almost an equal distribution among them. Roger Durkin did a fantastic job presenting the rules of the road in being an expert witness. His presentation was a combination of two approaches: first from the legal perspective and the second from an expert appraiser’s perspective. He did a good job of supporting the concepts with actual cases to help illustrate the points. Roger is a unique individual and clearly an expert in the appraisal field, holding a designation in five disciplines in addition to a law degree. The presentation elicited lively discussions and participation from the audience. Had time permitted, the seminar could have gone on for several more hours.

Both the USPAP and Expert Witness programs were great success due mainly to Nancy Stacy’s efforts. The Chapter owes her a big well done. She is one of those people to put ideas into action and makes sure things are done right. Thank you Nancy!!!!!!!!!!!!!!!!!!

Be a Leader

A Tip from Someone Who Knows

By Robert P. Lentz III, ASA

A friend's grandfather came to America from Eastern Europe. After being processed at Ellis Island, he went into a cafeteria in lower Manhattan to get something to eat. He sat down at an empty table and waited for someone to take his order. Of course nobody did. Finally, a woman with a tray full of food sat down opposite him and informed him how a cafeteria worked.

"Start out at that end," she said. "Just go along the line and pick out what you want. At the other end they'll tell you how much you have to pay."

"I soon learned that's how everything works in America," the grandfather told a friend.

"Life's a cafeteria here. You can get anything you want as long as you are willing to pay the price. You can even get success, but you'll never get it if you wait for someone to bring it to you. You have to get up and get it yourself."

Henry Ford once said, "You can't build a reputation on what you're going to do." Is there a contribution that you would like to make to the ASA that might benefit us as a group? Volunteer some of your valuable time, and see if that doesn't reaffirm your belief in yourself and pay dividends in your career. A good way to begin is to attend a Board of Directors meeting and let your interest be known.

Job Opportunity

One of our members would like to share a job opportunity at Bonham’s and Butterfields in Los Angeles. Bonham’s is seeking a part-time silver appraiser.
Please send resume to:
Leslie Wright, Vice President and Director of Trusts and Estates

Bonham’s and Butterfields Los Angeles. leslie.wright@bonhams.com

Events Calendar

October 2009

29^th – 31^st (Wed-Sat) SF Fall Antiques Show, Fort Mason: http://www.sffas.org/

NOVEMBER 2009

12^th (Thur) Chapter Meeting, Judge Richard Livermore: “A Good / Bad Expert Witness from a Judge’s Perspective.”

13^th (Fri) BV “Fair Value Summit” SF register

20^th (Fri) Bonham’s & Butterfields Mixer & Auction Preview, 5:30-6:45; Hallmarks presentation, 7-8:30 RSVP Suzanne Martinez 415-982-2213 or Lynne Arkin 415-861-7500

DECEMBER 2009

10^th (Thur) Chapter Meeting, Tony Correia: “Vines & Wines: Market Trends”

*Merry Christmas & Happy Holidays!* Cherish your family.

JANUARY 2010

14^TH (Thur) Chapter Meeting G&J, topic

FEBRUARY 2010

11^th (Thur) Chapter Meeting, TBA

MARCH 2010

11-14 MTS 208, Marine Vessel Survey - SF

11^th (Thur) Chapter Meeting, Executive Coach

APRIL 2010

8^TH (Thur) Chapter Meeting, International & Fair Value Accounting

MAY 2010

13^th (Thur) Chapter Meeting, Bill Mulligan: “Alternative Energy Outlook”

JUNE 2010

10^th (Thur) Chapter Meeting, Stephen Braitman: “Music Appraisal”

JULY 2010

8^th (Thur) No chapter meeting

26^th-28^th International Conf.

AUGUST 2010

6^th (Fri) tentative - Chapter Retreat
12^th (Thur) Chapter meeting, Installation of new officers TBA

SEPTEMBER 2010

9^th (Thur) Annual Meeting/Candidate’s Night

October 2010

14^th (Thur)

November 2010

11^th (Thur)

December 2010

9^th (Thur)

NorCal Officers & Directors

L to R:, Gil Mitchell, ASA Treasurer; Robin Erdmann, ASA Past President, Doug Baxter, ASA President; Bob Lentz, ASA Vice President; and (not pictured) Jack Young, Secretary

L to R: Gil Mitchell, ASA, Treasurer; Doug Schnitzer, ASA; Nancy Stacy, ASA, G&J Director; Robin Erdmann, ASA, Past President; Doug Baxter, ASA, President; Roger Rapport, ASA, PP Director, Bob Lentz, ASA, Vice-President; Directors not pictured: John Barnet, AM, BV Director

Chapter Officers

Chapter President Douglas S. Baxter (ASA)

Chapter Vice President Robert P. Lentz III, ASA (BV)

Chapter Secretary Jack Young (MTS)

Chapter Treasurer Gil Mitchell, ASA (MTS)

Chapter Past Chair Robin J. Erdmann, ASA (RP)

Discipline Directors

Business Valuation John Barnet, AM

Gems & Jewelry Nancy Stacy, ASA*

Machinery & Technical (Jack Young until we find a volunteer)

Real Property Ray Mattison, ASA

Personal Property Roger Rapport, ASA

International Officers

International President Mike Evans, ASA

Region 5 Governor Greg Ansel, ASA

Anyone interested in being an active participant in the chapter should contact Doug Baxter at DBaxter@hobartappraisals.com and attend a Board of Directors Meeting

BOD Minutes

Board of Directors Minutes
Northern CA Chapter - ASA
L'Olivier Restaurant, 465 Davis Ct, San Francisco, CA
September 10, 2009

1. Call to Order by Doug Baxter 4:45PM

Officers Present: Doug Baxter, Bob Lentz, Gil Mitchell, Jack Young

Directors Present: John Barnet, Nancy Stacy

Guests Present: Randy Trahan, Jim Brown, Greg Ansel

2. Agenda Review

Motion: Doug moved to adopt agenda, Seconded: Jack Young, passed unanimous

3. Consent calendar

3.1 June Board minutes            Attached
3.2 Treasurer's Report              No report submitted
3.3 Discipline report-PP            No report submitted
3.4 Discipline report-MTS          No report submitted
3.5 Discipline report-GJ         Report attached
3.6 Discipline report-BV            No report submitted
3.7 Discipline report-RP            No report submitted

Motion to adopt consent calendar: Doug Baxter, Seconded: Jack Young, passed unanimous

4. Program Development

4.1 San Diego Bar Conference directory distribution

Doug: ASA NorCal directory were produced and distributed at the CA bar meeting in San Diego. Dealing with ASA to get the directory prepared was very frustrating. Doug distributed a copy of the directory and errors in the directory were noted.

Nancy: headquarters is rebuilding the member database and website. It should be done this Fall but “don’t hold your breath.”

4.2 Upcoming seminars & courses

4.3 MTS conference in SF update

Gil: The only thing the chapter is doing is hosting the coffees for the seminar. $2,500 for all days.

The board confirmed that Bob Podwalny has the authority to buy an LCD projector, as stated in the minutes, and furthermore that he should make sure that it gets to the October 3rd USPAP course. President Doug Baxter will be in charge of the projector and make sure it gets to the monthly meetings.

4.4 BV Fair Value program

Discussion about the BV program that KPMG is putting on and whether or not to promote to ASA members.

Bob L: I don’t know why anyone other than BV people would be interested.

Gil: MTS folks would be very interested in knowing more about this and I think it should be promoted more to ASA MTS folks.

4.5 Changes to program outline in February

Doug: Joe Cunningham is a world expert on quilts. A personal property member contacted him after a discussion and he was interested in speaking to the chapter. The member inquired about an honorarium which I suggested at $250.

Nancy: I don’t understand why we would pay anyone to speak to us. Many expert speakers address ASA meetings without a fee.

Bob L: Concerned about setting a precedent in paying speakers.

The board informally agreed to not pay dinner speakers.

Discussion on gearing one or two meetings a year to attract BV members.

Bob L: No one other than BV folks would be interested so no one else would come.

Gil: Thinks the MTS folks would love to network with the BV folks.

John Barnet: Have a quality BV meeting without technical development.

Have a law firm sponsor an ASA BV seminar.
I know a local executive coach that we could probably get as a speaker.

I know a retired superior court judge that can talk about what makes a good and a bad witness.

Can get a speaker from a firm that does estate planning for high-wealth individuals?

After discussion the tentative program schedule by month was changed as follows

October 2009 Narrative appraisal writing Roger Durkin

November 2009 What makes a good witness? Judge Richard Livermore

December 2009 Market Trends in Wine Tony Correia

January 2010 Nancy to find a Gems and Jewels speaker

February 2010 Economic Forecast

March 2010 Executive Coach

April 2010 International & Fair Value Accounting

May 2010 Alternative Energy outlook Bill Mulligan, Sunpower

June 2010 Music Appraisal Stephen Braitman

July 2010 no meeting (International Conference)

August 2010 Leadership Retreat should we also have a meeting?

September 2010 Annual meeting / Candidate’s night

5. ASA chapter and HQ issues

5.1 Admin assistance

Jack is working with Nancy and Robin to consolidate an email list of non-ASA member that may be interested in our seminars.

5.2 Website Migration- Who will keep tabs on National? Nancy will work on it.

Doug will contact Lou re: migration of the NorCal ASA website to the new ASA website.

~~5.3 Dues policy/ASA Website~~

5.4 chapter electronic mailing list - 1 or 2 groups, who administers?
The board agreed that the President should be the owner of the Yahoo list with Stephen B. and Jack Y as administrators.

Jack agreed to help John Barnet get on the Yahoo group

Nancy: Make sure the list is invitation only and list members can see the prior messages.

5.5 communication to members

Doug: Member directory is now on the Google docs site for anyone who wants it.

Jack will start a Linked-In group for members

5.6 printed directory Who will direct this effort?

The board informally decided to give members access to the member directory but not print a directory for all members.

5.7 Presentation of Awards/Advancement - none

6. Legal issues needing action or discussion nothing to report

Next BOD meeting conflicts with the Expert Witness class so the board will try to do it’s business by email and by conference call on (and have a brief meeting at 6:00 Oct 8) 10/9/09 at 8:30 AM if needed

November meeting to start at 4:45 PM

7. Adjourn meeting 6:10 PM

Respectfully submitted, Jack Young, Secretary

Images:

The MTS Conference and our USPAP and Expert Witness seminars drew attendees from three continents and five countries. Roger Durkin, ASA (rt) did a masterful job!

Roger Durkin is a dynamic speaker!

Janet Coe, formerly with ASA, helped organize the MTS Conference and was gladd to see old friends

Doug Baxter opens the October meeting and Narrative Report Writing program

We learned a new way of looking at our appraisal reports