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SCCAI STAFF Linda Zimmer, Executive Director executivedirector@sccai.org Zouka Rosen, Education Adm education@sccai.org Aloma B. Law, Member Service Coor. memberservices@sccai.org

MAI Presentation at General Membership Meeting

1

2006 Officers - Announcement—75th Annual Installation Banquet

2

Board of Directors Elections

3

New Membership 4

Photos—General Mem-bership Meeting and Seminar

5

Article-What Have We don For You Lately?

6-8

23rd Pan Pacific Con-gress Announcement

8

AI Board on Global and Local Issues.

9

Unplugged...Real Time 411

10-11

Schedule of Events 12

2007 Education Offer- 13

Qualifying Criteria 14

Earthquake Prepared-ness

15

12th Annual Confer-ence & Trade Show

16

INSIDE THIS ISSUE

The Trends V OLUME 4 I S SUE 7

A UGUST 2006

PRESENTATION OF MAI CERTIFICATES

AT THE General Membership Meeting

Thoughts from a past President

Robert Lea, MAI

The most pleasant duty of any chapter president is the presentation of mem-bership certificates. I and the other members in the room look back on the night that we received our membership certificates and we share your joy and your richly deserved sense of achievement. You have just received the most highly regarded designations in the ap-praisal profession. They are highly regarded for the same reason it took you a long time and great effort to reach here… the most rigorous set of requirements found in real estate appraisal. Associates who are working toward designations, be inspired, a night like this one is waiting for you. It can be done. You new members must be aware though that these certificates are not your property. They are yours to keep in trust as long as you abide by the regulations of the Appraisal Institute; in particular, the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics. Tonight signals the end of a long path of effort. But do not look at it as the pin-nacle of your career. Treat it rather as a be-ginning of your membership career. The Ap-praisal Institute, your region and this chapter are all nourished and grow through the efforts of member volunteers. By serving on local, regional and national committees you will continue that tradition and provide the on-going strength of the organization that you have worked so hard to join. Your rewards for this work will be both a sense of accomplish-ment and the comradeship of the people that serve with you. This is the most satisfying aspect of membership to all of you who par-ticipate. Ladies and gentlemen, please greet the newest MAI members of the Southern California Chapter of the Appraisal Institute.

Karen Davidson, MAI and 2006 SCCAI President pre-sents John J. Gobbell, Jr. with the MAI Designation

Karen Davidson, MAI poses with Don T. Hirose, MAI after presenting him with the MAI Designation

Tuesday, July 11th Embassy Suites Hotel

in Arcadia

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2006 Officers, Directors and Branch Chapter Chairs

Newsletter of the Southern California Chapter of the Appraisal Institute

PRESIDENT Karen G. Davidson,

MAI VICE PRESIDENT Carol Lynn Chirpich,

SRA TREASURER

Stuart D. DuVall, MAI SECRETARY

Orell C. Anderson, MAI

DIRECTORS

CENTRAL COAST

CHAIR Jim Mackelburg, SRA

VICE CHAIR Joyce Riggs, MAI

ADVISOR Michael DaKroob

EASTERN BRANCH

CHAIR Don Mowery

VICE CHAIR Charles Armstrong

ADVISOR Paul Norlen, MAI

SOUTHERN BRANCH

CHAIR Scott Pettifer, MAI

VICE CHAIR (Open)

ADVISOR Kent Serviss

WESTERN BRANCH CHAIR

Moses Jordan, SRPA VICE CHAIR Eric B. Garfield

ADVISOR TBD

IMMEDIATE

PAST PRESIDENT

David Gribin, MAI

EDUCATION COORDINATOR Steve Norris, MAI

ADMISSIONS

CHAIR-Residential Julia Rias, SRA

ASSOCIATE GUID-ANCE CHAIR-

General Tom Neeson, MAI

ASSOCIATE GUID-ANCE CHAIR—RESIDENTIAL

Kerry Lieman, SRA

Saturday, Saturday, January 27, 2007January 27, 2007

75th Annual75th Annual

Installation BanquetInstallation Banquet

At theAt the

Disneyland HotelDisneyland Hotel

Mark your calendar to Mark your calendar to

join us !join us !

“Lunch with the Assessors“ Market Trends, Changes in Availability of Information

Thursday, September 14, 2006 11:30am—Check-in & Networking

12:00pm—Lunch immediately followed by speaker presentations Moby Dick’s Restaurant, Santa Barbara

Cost: $30

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The duly appointed and elected members of the 2006 Southern California Chapter of the Appraisal Institute Nominat-ing Committee, which is comprised of the Chair – David Gribin, MAI, and members – Vincent Maher, MAI; Kerry Leiman, SRA; Stuart DuVall MAI; Pat Kellogg, MAI; and Kent Serviss, convened via conference call on July 10th and 17th 2006, in accordance with SCCAI B laws and made the following nominations:

2007, One-Year Term President: Carol Lynn Chirpich, SRA

Vice President: Stuart D. DuVall, MAI

Treasurer: Orell C. Anderson, MAI

Secretary: Steven R. Fontes, MAI

Representatives to Region VII Committee: Kerry Leiman, SRA

(2007 to 2008 term) Julia L. Rias, SRA

Scott Pettifer, MAI

Eric Garfield

William Reinhart, MAI

Russel Babbitz, MAI

2007, One-Year Term Alternate Representatives to Region VII Committee: Larry D. Webb, MAI

Vickie Gill, SRA

John Kraft, PhD.

All nominees must be active members in good standing. According to Article X, Nominations and Elections, Part D: Additional Nominations: Additional nominations may be made by a timely filing of a petition signed by at least five percent (5%) of the total chapter membership. To be effec-tive, each nominating petition must be submitted to the Chapter Secretary no fewer than fifteen (15) days prior to the regular membership meeting at which the election is to be held. The Chapter Secretary shall transmit a copy of any petition filed to each Chapter member no fewer than ten (10) days prior to the date set for the membership meeting.

ELECTIONS WILL BE HELD DURING THE LUNCH PROGRAM:

12:15 PM to 1:15 PM Friday, August 18, 2006

Irvine Marriott Hotel 18000 Von Karman Avenue

Irvine, CA 92612 www.marriot.com/property/propertypage/LAXIR

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JANUARY Adam M. Bogorad Shervin Bozorgnia Jeffrey Y. Carrillo Daniel S. Choi Jackie J. Flowers James J. Gerard Jeffrey J. Gway Yuri Gurevich Roger Henning Nicholas S. Ito Bonnie Joachim Steven J. Johnson Geoffrey W. Koopman Arian Leviste Frances M. Martel Eduardo Medina Gerald Morey Jim E. Moreno Manual Nevarez Stephen M. Parry David Romine Allen D. Smaldino Richard J. Van Wckle Heather N. Voeltner Brenda A. Wendt Cathy M. Williams Angel Zozikov

FEBRUARY James L. Andreas Ahansoliz Bahrami Jennifer L. Bosco Michael A. Chesney Michael G. Davidson Brian M. Delman Marcus Espiroza Ethan Fien Desarai L. Henry Jason H. Hinze Tirapol Krutrangsit Aarkis Mambreian Jeremy L. Martin Alan Douglas Myrick Liz Perez James J. Pipolo Kimberly R. Sanders

MARCH John B. Evans Donna Santo Lydia B. Satin Lilly Shamam Judith Valadez James D. Welsh Gloria A. Wilson Michael T. Wilson

APRIL Gail L. Brooks Vincent J. Cardenas, MAI Michael D. Cooper Molly Drexler Joyce H. Goralski Don T. Hirose, MAI Vicky L. Oates Kristen R. Patterson Bryan Roth K. Lee Steidel Russell B. Tiv Ramon Torres, Jr.

MAY Golden C. Arouza Eric S. Boucher Drusie T. Bushnell Cesar Chung Robert M. Contant, Jr. Jonathan K. Goldrich Geraldine E. Goralski Paul Hyman Wayne E. Johnston Yuhong R. Li Christie L. Markham Keith A. Miller Rory T. Nomoto Nicholas T. Quary Margaret Reilly John R. Sellers William V. Stolfi Vladimir Sturza Marvin L. Tobias Mike Young

Sydney Warburton, III Marcia S. Wertenberger

JUNE J. Curteis Calhoun Aaron V. Chaires Peter Charos Kory M. Felix Richard A. Gilbert John J. Gobbell, Jr. Stuart Hathaway Brian J. Pavlic Shujah Qadir Ronald K. Rossi Robert Stier Daniel Trimble Peggy A. Vickers Young Yoo

JULY Joseph A. Adaimy Rick L. Beauchamp Dennis J. Jorgenson William M. Martinez Rick Morris James M. Reimers Rommel A. Rivas Jose A. Rivera Katherine M. Samson Rebecca M. Santana LP Speck David C. Ting Mark W. Vejnar Honorato M. Villa

NAME AND ADDRESS CHANGES

P lease note that all name & address

changes should be made through the Appraisal Institute, rather than the chapter. The AI generates regular updates, which are used to update mem-bership information for our direc-tory, email notices, mailings, etc. Please go to the Members Only section of the national website to m a k e t h e c h a n g e s . www.appraisalinstitute.org Thanks for keeping your info cur-rent!!!

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General Membership Meeting and Seminar Held on Tuesday, July 11th

at THE Embassy Suites in Arcadia

Several members enjoying the banquet feast.

Eric B. Garfield, Vice Chair Western Branch

Mr. & Mrs. Jack Gobbell, Mr. & Mrs. John J. Gobbell, Jr., MAI and Robert Lea, MAI

Deloris M. Waldron, MAI & SRA and Mike Young, Associate Member

Mr. & Mrs. Jack Gobbell and Mr. & Mrs. John J. Gobbell, Jr., MAI

Mr. & Mrs. Don T. Hirose, MAI

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A number of things are happening on both the State and National level that

can and will affect every appraiser in this state. Let’s talk about a few things on the state level today. A Government Relations representative from each A.I. Chapter in California met recently in Sacra-mento to discuss pending legislation and changes in our controlling State agency. Again we were pleased to meet with OREA Anthony Majewski who joined us for lunch. The Appraisal Institute remains the only organization with whom Director Majewski meets regularly to discuss the operation of the OREA. Last year, we asked the Director to apply for a fee reduction for appraisal licenses of all levels, as the agency had tremendous reserves. Due to this request and our vigilant monitoring of the issue, we are pleased to announce that a fee reduction will be going into effect later this summer, perhaps as early as next month. The reduction will be back to the level prior to 1/1/00, and should save licen-sees about $200 per two-year license. This will be done for new licenses and renewals from the ap-proval date through 2009, using up a large portion of the OREA surplus. The reduction will be reviewed again at that time. The intent is to reduce the surplus to one year’s operating budget.

Licenses: The State License count as of June 9, 2006 is

AT 6,668; AL 5,333; AR 4,393; and AG 3,343; a total of 19,737. The total is up about 2,000 from October 2005. The ATs are rushing to the AL level to beat the 2008 AQB criteria. The AT pass rate on the first ex-amination remains below 50% and we discussed with the Director the capability of Approved Education Pro-viders. It is obvious some are better than others and the OREA is beginning to consider weeding out the less capable providers. A methodology for account-ability has not been determined. Committee members suggested simply checking the database to determine which basic education providers were utilized by the failed examinees. OREA may consider sending non-OREA staff to courses to determine provider adher-ence to time and content requirements.

Licensing

Every week OREA sets new records for total licenses and certificates. As of June 9, 2006, there are 19,737 licenses statewide. Of these, there are 6,668 trainees,(!) 5,333 licensed residential, 4,393 certified residential, and 3,343 certified general. Of the upgrades, nearly all move from trainee to residen-tial licenses. Mr. Majewski notes that there are, very few original or upgrade applications to certified gen-eral.

By Gregg the Government Guy...

Continued on next page

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It is also alarming to note that less than 50% of those taking the trainee’s exam pass. Overall, license renewals are running just above 90%. Fee only renewals are taking about 3 to 5 days. The other period CE renewals take about 25 days. The initial applications for AT level take 55 to 60 days. PT2 applications for upgrades from one li-cense level to the next are running about 80 days. A seasoned, full OREA staff has reduced the time from receipt of application to notice at all levels signifi-cantly.

The Director has received permission to have an evaluation of OREA computers to determine what is needed to allow (1) on-line licensing and (2) use of credit cards for paying fees. California has reciprocity agreements with 22 states.

Course approvals are completed within 90 days. Some Education Providers are lax in filing timely and complete applications. The Director reminded us that licensed real estate brokers received 1,000 of 2,000 hours of ap-praisal experience because of holding a real estate license. The Appraisal Qualifications Board has dis-qualified such credit—so those licensees that did not have enough qualified hours to make up the 1,000 automatic hours are now listed on the National Ap-praiser Registry with an 'asterisk' next to their names. The notation will mean that they have not met AQB requirements and are not able to do federally related work. Budget and Staffing

The 2006/2007 OREA budget has been approved and is awaiting passage by the legislature and signa-ture by the Governor. All OREA staffing positions are filled. The budget allows one more enforcement in-vestigator, bringing the total to 8 plus a supervisor. Investigators must hold an AR or AG license.

Complaints and Discipline Most complaints about appraisers continue to come from review appraisers and lenders. The Ap-praisal Subcommittee (ASC) Policy 10 wants com-plaints resolved in 12 months. OREA currently has 64 cases beyond 12 months. Once complaints are turned over to the Attorney General’s office, the AG’s must find a courtroom. In Los Angeles County and other heavily populated counties this could take well over a year. Considerable time is spent by investigators relative to trainee supervisors. As the new OREA Regulations become affective with the 2008 AQB Requirements, supervisory appraisers may not have more than three trainees. The supervisory appraiser must be at the certified license level (AR or AG). Currently OREA averages about 12 to 15 license revocations per year and 10 to 12 license suspensions. There are about 140 total disciplinary actions each year, many of which result in the re-quirement for additional education for the licensee. Legislative Issues The California Legislature is in the final months of the 2005-2006 legislative session. Assum-ing passage of a state budget, the legislature will be in summer recess from July 7 until August 7. They will return for the balance of August, and must ad-journ pursuant to the state constitution by midnight, August 31. The remainder of this month is devoted to policy committee hearings on “second house” bills: Assembly bills passed over to the Senate, and Sen-ate bills in the Assembly. As such, the next few weeks are exceedingly busy, in addition to the con-tinuing budget activity.

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Clearly, the most important bill for us is SB 1847, a Senate Banking Committee omnibus bill which includes our clean-up of the construction cost estimate problem created in last year’s SB 2. (SB2 prohibited any appraiser from performing replace-ment cost estimates within the State of California.) Working with the Senate committee, we were able to negotiate language which will ensure that appraisers may continue to provide these services to lenders. The negotiated language contains other provisions which we do not believe will ever constrain apprais-ers. Also of note is AB 2416, which would permit California Finance Lenders (CFLs), like Household Finance Co. to charge borrowers for the actual cost of AVM’s or an appraisal provided by third parties, but not both. If, after ordering an AVM, the lender decides an appraisal is needed, the fee of the AVM or appraisal must be rebated to the borrower. After fairly extensive discussion, we determined to remain neutral on the bill, which is pending hearing in the Senate. We have heard nothing recently about efforts by the Appraisal Coalition to amend the law passed two years ago in California to eliminate the reference to MAIs. On the other hand, we are hearing com-plaints about various state RFPs which require the MAI designation. We have been unable to find any references to whether this is a legal or prohibited practice in the California Business and Professions Code. The only reference we found was in the fed-eral registry that prohibits the requirement of a spe-cific designation in federally related transactions (FRT’s). Submitted by Gregg Whittlesey, Government Relations Representative; Southern California Chapter; A.I., Region VII Government Relations Representative

Have your Checked the RESOURCE REGISTRY Login to the Members Only section at www.appraisalinstitute.org

Click on Leadership Resource Registry In the upper left-hand corner

The online version of the 15 hour US-PAP course is currently not available, as we make updates to bring it into conformance with the new version of USPAP that took ef-fect on July 1. We hope to have it available again by the August 15 online session. This does not affect the online 7 hour USPAP update. It is still available and the material reflects the current version of US-PAP.·

23rd Pan Pacific Congress San Francisco 2006

September 16—19, 2006

The Pan Pacific Congress is a truly international affair that will allow you to broaden your knowledge through an ex-change of information and ideas with your industry peers from all across the country and world, including large groups from China, Japan and Korea. The extended early bird registration ends on August 11 so don’t delay and regis-ter online to take advantage of this discount at - www.appraisalinstitute.org/conf/ppc.asp

SCHOLARSHIPS AVAILABLE

THROUGH

THE APPRAISAL INSTITUTE

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Plans for a yearlong observation in 2007 of the Appraisal Institute’s 75th anniversary were outlined to the Board. Highlights include a major celebration in June in Las Vegas, to which all members as well as nonmembers and clients will be invited. A series of receptions, exhibits and other activities honoring the organization’s past, present and future are also being considered. Although the Appraisal Institute as it exists today resulted from the unification of the American In-stitute of Real Estate Appraisers and the Society of Real Estate Appraisers in 1991, the organiza-tion’s roots stretch back through its predecessor organizations to 1932.

The Appraisal Institute ended 2005 in the black, due in large part to the success of Education Programs and Publications last year, according to the summary of the financial status of the organization presented by vice president R. Wayne Pugh, MAI, who chairs the Finance Committee. Current figures show membership retention to be higher than a year ago.

The nomination of Board member Jim Amorin, MAI, SRA, to serve as 2007 vice presi-dent was reported by immediate past president Bruce Kellogg, MAI, chair of the Leadership De-velopment & Nominating Committee. The Board will vote on Amorin’s nomination during its De-cember 4-5, 2006, meeting in Chicago. The Board also will meet September 20-21 in San Francisco, immediately following the Pan Pacific Congress of Appraisers.

In addition to approving the changes regarding the IVS, the two other proposed amendments presented in the 45-day notice were also adopted. Effective July 1, 2006, the requirement regarding Specialized Experience for the MAI designation will increase to 4,500 hours from 3,000 hours and the submission of initial experience will be eliminated. (Associate Members who applied for Associate Member status prior to July 1, 2006, may have alterna-tives available to them.) The other amendments adopted extend until December 31, 2007, the time in which SRA members working toward the MAI designation can satisfy the college degree requirement through the GMAT examination.

Appraisal Institute Board Addresses Global and Local Issues During June Meeting

L ooking both to the Appraisal Insti-tute’s past as well as its future, the Board of Di-rectors laid the groundwork for celebrating the organization’s 75th anniversary in 2007 as well as potentially expanding the scope of the organi-zation going forward. During its June 26-27 meeting in Chicago, the Board also addressed the growing global nature of the profession by approving the incorporation of the International Valuation Standards (IVS), promulgated by the International Valuation Standards Committee, into the Appraisal Institute’s Standards of Profes-sional Practice. The resulting changes to the Standards and Code of Professional Ethics ac-knowledge that an increasing number of Ap-praisal Institute members practice full- or part-time outside the United States or work for clients that engage in business across national borders.

The multinational character of today’s appraisal profession was also the focus of open-ing comments from president Dick Powers, MAI, SRA, and president-elect Terry Dunkin, MAI, SRA. Each officer represented the Appraisal In-stitute at a number of recent international gather-ings. “Respect for the Appraisal Institute is tre-mendous,” Dunkin stated. It’s a foregone conclu-sion that appraisers will be doing business on an international basis in the future, according to Dunkin, predicting that in 10 years they would be doing much of their work for offshore clients.

The Board discussed the future direction of the Appraisal Institute, including whether to explore the role of the Appraisal Institute in a multi-disciplinary valuation environment. The Board concluded its discussion by directing the Strategic Planning Committee to draft proposed vision and mission statements reflecting such alternatives. The SPC is to come back to the Board in September with its suggested revisions, which will be circulated to the membership for further input, potentially allowing the Board to take further action by its December 2006 meet-

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By Sean T. Heath The Heath Group

It’s Monday, it’s raining, and you already know how the morning is going to turn out. Strapped into your car, Starbucks in hand, you crawl southbound on I-15, wondering if any of the 30,000 people inching along from the Riverside County border into San Diego decided to call in sick. Your cell phone beeps, and a pleasant voice informs you that your morning com-mute time is 45 minutes—and rising by the second. You press a key, and the same voice suggests an alternate route which will save you precious time. What if there was a system that could alert you to traffic tie-ups in real-time? A type of 411 for frustrated mo-torists? Over the past decade, more than 300 travel-information telephone numbers have sprung up across the country, delivering real-time traffic information to travelers and commuters. In 1999, the U.S. Department of Transpor-tation petitioned the FCC for a three-digit dialing code to make it easier for consumers to access these travel infor-mation services. The FCC designated “511” as the official national travel-information number on July 21, 2000. Less than a year later, the first 511 service was introduced in northern Kentucky, and by the beginning of 2003, more than a dozen 511 systems had launched. As of January 23, 2004 15 states had introduced traffic-information systems, and another five expect to launch theirs by the end of 2004 (see graph). Locally, UCSD’s California Institute for Telecom-munications and Information Technology (Cal-IT2) is ex-perimenting with a wireless traffic information system that may become the precursor to a more advanced 511 sys-tem for San Diego by 2005. A caller who dials (966) 500-0977 and speaks the name and direction of a major freeway, will hear average traffic speeds at various intersections. The data, provided by CalTrans, comes from sensors embedded in the high-ways, which is then turned into voice signals for delivery

over cell-phone networks. The idea is to give motorists any-time, anywhere access to traffic alerts and highway-speed information. Although California may be a few years away from realizing a statewide 511, such a system is already being beta-tested in the nine-county Bay Area. For a couple of months now, commuters from Santa Clara to Sonoma have been able to receive up-to-the-minute information on traffic conditions and incidents, details on public transportation routes and fares, instant carpool and vanpool referrals, bicy-cling information and more. The Bay Area 511 is managed by a partnership of public agencies (including the CHP and Cal-Trans) and supported by AT&T, Cingular, MetroPCS, Nextel, Sprint, T-Mobile, and Verizon.

A state-of-the-art speech-recognition system allows navigation through the 511 system without pressing a button. The traffic page at the 511 web site (traffic.511.org) went online earlier this year, and includes estimated driving times for specific routes based on real-time information. Additional features on the Traffic page will include Bay Area traffic maps and FasTrakTM information.

A similar traffic-sensor system has been developed by Mobility Technologies of Pennsylvania. This system is installed along major highways, and gathers lane-by-lane data on travel speeds, lane occupancy and vehicle counts on a 24/7 basis. This data is then relayed to Mobility’s Traffic Operations Center who in turn augments the data with streams from news video, aircraft, mobile units, and reports from emergency and maintenance-service frequencies. This data can then be wirelessly distributed to con-sumers, working in conjunction with in-car navigation sys-tems or GPS units in modern cell phones to suggest alternate traffic routes. Mobility’s services are also used by local public agencies as an aid in infrastructure planning, safety research and livable-community efforts.

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The 511 system could also reach out to us through our watches. Already, Microsoft is experimenting with trans-mitting traffic, news and sports information over the FM band to consumers wearing special Citizen or Fossil Watches. Electronic billboards could also be tied into the 511 system to give drivers heads-up alerts to upcoming obstruc-tions at a large-enough distance so that drivers could alter their course. They could also be used to help manage traffic flow, such as lane closures or detours. Satellite-radio providers XM Radio and Sirius have also contributed to this new generation of traffic information by introducing dedicated 24-hour traffic and weather channels in certain test markets. As of February, both providers have created a Los Angeles traffic channel, and expect to have a channel for San Diego in the next several months. Right now, traffic engineers have to rely on rings of cable buried in roadways (called “inductive loops”) to gather data. Although inductive loops are still the most widely de-ployed transportation sensor system, over 25% of all induc-tive loops are malfunctioning at any given time, according to a study from the US Department of Transportation’s Federal Highway Administration. Loop sensors have to withstand the thermal and mechanical stresses of installation, changing environmental conditions, movement of pavement and abra-sive chemical conditions. And if that weren’t enough, loop sensors could be driven over by construction vehicles prior to resurfacing operations or handled badly by unfamiliar techni-cians during installation, causing them not to work in the first place. Nevertheless, loop detectors are still the dominant sensors in automatic traffic-information systems, but their maintenance is costly. Soon, the day will come when traffic sensors the size of dust particles could be mixed into the asphalt on roads and highways. The key lies in the success of shrinking chips. In March of 2003, engineers at UC Berkeley created a sensor chip measuring less than 3 millimeters on each side—so small, in fact, that more than a dozen could fit onto a penny Powered by low-voltage micro batteries a cubic milli-meter in size, these tiny sensors could take traffic samples at a rate of ten a second for the next hundred years. And if they fail, maintenance crews could simply sprinkle more into the road when they go out to patch potholes and cracks. Since no wires are needed for this type of sensor, unlike inductive loops, their cost of installation would be relatively low.

In an article published in Wired magazine George Johnson states that “there will be a day, maybe as soon as 2010, when our network of technology will disappear, when computation and connectivity become so pervasive that you forget they are there” like the gravel in the road stretching out before you. “The future will be a world of connecting ma-chines,” says Paul Saffo in the same Wired article. “Not machines talking to people, but machines talking to other machines on behalf of people.” In an experiment conducted over three weeks, I decided to try out the Cal-IT2 system for myself, compar-ing their automated traffic estimates against my actual travel time. On Interstate 15 from El Norte Parkway south to Pomerado Road, my actual time averaged be-tween 30 to 40 minutes—more if there was heavy fog, rain or an accident. Cal-IT2’s estimates were off by any-where from 4 to 15 minutes (see graph). Ok, so the new system still has some bugs in it. The interesting thing I found was that if you allowed for this difference—which could be an intentional processing delay to give motorists advance warning—the Cal-IT2 numbers came very close to actual travel times. So, will this new 511 system eliminate traffic jams? Probably not. But, advance warning of impending delays could help make a bad situation worse—unlike current traffic-chopper reports, which often come too late to be helpful.

And who knows, maybe the time we save through advance warning could lead to a second Star-bucks. Or extra minutes perusing the newspaper, or munching cereal. At least it’s better than yelling through the wind-shield at the cars in front of you, who can’t hear you any-

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AUGUST 2006 DAYS · DATES LOCATION PROGRAM Alternative Uses and Cost Valuation of Small Mixed Use

Tues & Wed—Aug 8 & 9

Anaheim Education

Sales Comparison Valuation of Small Mixed Use Properties

Thurs & Fri—Aug 10 & 11 Anaheim Education

SCCAI Conference and Trade Show

Fri & Sat—Aug 18 & 19 Irvine Education

Business Practices & Ethics Thurs.— Aug 24 Burbank Education

SEPTEMBER 2006 DAYS · DATES LOCATION PROGRAM

Labor Day Holiday Mon—Sept 4 Chapter Office Closed

CCB-Lunch/Seminar Thurs—Sept 14 Santa Barbara Lunch Seminar

AI Fall Committee Mtgs & Chapter Leadership Prgm

Fri & Sat—Sept 15 & 16 San Francisco, (The Palace Hotel)

Meetings

AI Pan Pacific Congress AI Summer Conference

Sat thru Tues—Sept 16 thru 19

San Francisco (The Palace Hotel)

4-Day Conference

Highest & Best Use and Mar-ket Analysis

Mon thru Sat—Sept 18 thru 23 Arcadia Education

Basic Appraisal Principles Sept 9+++ Fullerton 4 Saturdays/Education

AI Board of Directors Meeting Thurs & Fri—Sept 20 & 21 San Francisco (The Palace Hotel)

Meetings

WBC-Westside Breakfast Thurs—Sept 21 Santa Monica Breakfast Seminar

Reviewing Residential Appraisal Reports

Tues—Sept 26 Anaheim Education

OCTOBER 2006 DAYS DATES LOCATION PROGRAM

Residential Design & Functional Utility

Wed—Oct 4 Long Beach Education

Central Coast Branch Lunch Fri—Oct 6 Ventura-Hungry Hunter Rest. Seminar-Departure...Departure

Advanced Income Capitalization

Thurs thru Wed— Oct 5 thru Oct 11

Arcadia Education

7 hr. USPAP Update Wed—Oct 11 Long Beach 4 Saturdays/Education

Basic Appraisal Procedures Sat—Oct 14 thru 19 Fullerton Education

Board of Directors Meeting Wed—Oct 18 Rio Hondo Country Club Downey

Meeting

Heritage Night Wed—Oct 18 Rio Hondo Country Club Downey

Dinner

General Membership Dinner Wed –Oct 18 Rio Hondo Country Club Downey

Dinner

Report Writing and Valuation Analysis

Mon thru Sat - Oct 23 thru 28

Costa Mesa Education

Advanced Applications Thurs thru Wed - Oct 26 thru Nov 1st

Arcadia Education

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2007 Education

COURSES • 15-Hour National USPAP

• 7-Hour National USPAP

• Advanced Applications

• Advanced Income Capitalization

• Advanced Residential Applications & Case Studies / Part 1

• Advanced Residential Report Writing / Part 2

• Advanced Sales Comparison & Cost Approaches

• Basic Appraisal Principles

• Basic Appraisal Procedures

• Basic Income Capitalization

• Business Practices and Ethics

• General Applications

• Highest & Best Use and Market Analysis

• Income Valuation of Small, Mixed-Use Properties

• Real Estate Finance Statistics and Valuation Modeling

• Report Writing and Valuation Analysis

• Residential Market Analysis and Highest & Best Use

• Residential Report Writing and Case Studies

• Residential Sales Comparison and Income Approaches

• Residential Site Valuation and Cost Approach

• Sales Comparison Valuation of Small, Mixed-Use Proper-ties

• The Appraiser as an Expert Witness: Preparation & Testi-mony

• General Appraiser Market Analysis & Highest & Best Use-400-

SEMINARS

• Avoiding Liability as a Residential Appraiser

• What Clients Would Like Their Appraisers to Know

• Demo Report Writing

• Evaluating Residential Construction

• Evaluating Commercial Construction

• Uniform Appraisal Standards for Federal Land

• Acquisitions: Practical Applications for Fee Ap-praisers

ALL COURSES AND SEMINARS

WILL BE AVAILABLE FOR

REGISTRATION

ONLINE AT WWW.SCCAI.ORG

STARTING NOVEMBER 2006

REGISTER EARLY:

BEAT THE RUSH

TO UPGRADE YOUR LICENSE

BEFORE 2008 DEADLINE!

ON-LINE REGISTRATION

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OREA License Levels

Basic Education Requirements

College Level Requirements

Experience

Residential (AL) 150 Hours N/A 2,000 Hours

(accumulated over at least a 12 month period)

Certified General (AG) 300 Hours Bachelors Degree** 3,000 Hours that include at least 1500 non-residential hours (accumulated over at least a 30 month period)

Certified Residential (AR)

200 Hours Associate Degree* 2,500 Hours

(accumulated over at least a 24 month period)

Trainee (AT) 150 Hours N/A None

AQB Minimum Real Property Appraiser Qualifying Criteria (Effective January 1, 2008)

The real property appraiser criteria effective January 1, 2008 are summarized in the following table.

Individuals gaining experience at the AT level must be supervised by a certified licensed level appraiser under the new criteria. No supervisor can supervise more than three trainees. In lieu of the Associate Degree, an applicant can com-plete 21 college semester credits in courses covering specific subject matters: English Composition; Principles of Economics (Micro or Macro); Finance, Algebra, Geometry or higher mathe-matics; Statistics, Introduction to Computers; and Business or Real Estate Law. In lieu of the Bachelors Degree, an applicant can complete 30 college semester credits in courses covering spe-cific subject matters: English Composition; Micro Economics; Macro Economics; Finance, Algebra, Geometry or higher mathematics; Statistics, Introduction to Computers; and Busi-ness or Real Estate Law; and two elective courses in account-ing, geography, as-economics, business management, or real estate.

SEND ALL ARTICLES, COMMENTS, PHOTOS

AND MEMBER NEWS TO MEMBERSERVICES@SCCAI.ORG

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• Review your insurance policies at least once each year with your agent or broker to ensure that they provide adequate coverage.

• Consider purchasing an earthquake policy if your home is in an earthquake-prone area, doesn’t meet current building standards, or is built upon unstable ground.

• Brach your water heater to minimize the risks of fire and water damage caused by water heaters that topple during earthquakes.

• Bolting your home’s wood frame to its foundation can prevent damage resulting from the structure sliding off its foundation. And for houses on raised foundations, the bracing of “cripple walls” can also reduce damage from earthquakes.

• Mobile home owners should use earthquake-bracing systems to reduce the chance of damage from homes slipping off support jacks.

• Fasten cupboard doors with child-proof latches to prevent them fro opening and spilling their con-tents.

• Fasten bookcases, mirrors, televisions and other tall or heavy objects to wall studs.

• Gas appliances should have flexible attachments, and family members should be familiar with gas shut-off techniques.

To learn more about being prepared for earthquakes, contact the following organizations:

American Red Cross www.redcross.org/services/disaster/

Federal Emergency Management Agency (FEMA) www.fema.gov/hazard/earthquake/index.shtm

Governor’s Office of Emergency Services www.oes.ca.gov/Operational/OESHome/

Trends Page 16

SCCAI 12th Annual Conference & Trade Show

A 2-Day Event—August 18th & 19th, 2006— Irvine Marriott Hotel, Irvine California

Friday, August 18, 2006 Morning Residential Session 9am—12 Noon • “Changes in the Condo (1073) and 2-4 Unit (1025) Forms”: Guest Speaker: James Park, SRA, Aurora Loan Services, Denver CO

Morning Commercial Session 9am—12 Noon • Panel Discussion: “The Condo Hotel Phenomenon”

Luncheon Buffet 12:15 PM—1:15 PM SCCAI General Member Meeting & 2007 Elections

Afternoon Residential Session 1:30 PM— 4:30 PM • “Appraising in Today’s Society” Guest Speaker: Dr. Michael Carney

• “New Scope of Work and Hot It Affects You” Guest Speaker: Carol Chirpich, SRA

Afternoon Commercial Session 1:30PM—4:30 PM • “What’s Going on in The Commercial World” Irvine Co.—Real Estate Investors / Developers

• “Appraisal of Assets as Parts of a Going Concern” Guest Speaker: Claire H. Donias, FASA, PE

Saturday, August 19, 2006 Morning Seminar—8AM—12 Noon • “Loss Prevention”: Presented by Liability Insurance Administrators Robert Allen Wiley, Sr. Underwriter, Liability Insurance Administrators Claudia Gaglione, Attorney

Luncheon Buffet 12:00 PM—1:15 PM Keynote Speaker: Anthony Majewski, Director

California Office of Real Estate Appraisers (OREA)

Afternoon Residential Session 1:30 PM—4:30 PM • “Red Flags in Residential Reports” Guest Speakers: Greg Harding, Lead Investigator, OREA Vickie L. Gill, SRA—Appraisal Reviewer

Afternoon Commercial Session 1:30 PM—4:30 PM • Panel Discussion: “Detrimental Conditions in Commercial Properties” Host: Randy Bell, MAI