Machinery and Technical Specialties Sessions

Why Should I Attend A “Multidiscipline” Educational Session?

As ASA members, we understand and appreciate the multidiscipline approach to appraising. These sessions will provide an opportunity to learn about the similarities and differences in approaches to value. “Grain Facility Sale Case Study” and “Wind Powered Electric Generators” sessions have been identified as “RP and MTS,” but attendance by members of BV, GJ and PP who may have interest in these areas or would like to learn more about this peer organization is welcomed.

In addition to the keynote speaker’s session on “How to be an Effective Expert Witness,” the Real Property discipline is offering several other educational sessions that may be of interest to members in all disciplines. These include “Expert Witness Testimony,” “Eminent Domain” and “Ad Valorem Taxation.” These sessions have been identified as “MULTIDISCIPLINE.” Take a few minutes to consider these excellent educational opportunites as you plan your conference agenda.

Quick Links

Multidiscipline Sessions

8:30 a.m.–11:15 a.m.

Phillip J. Kolczynski, Esq., Kolczynski Law Corporation

This session is a continuation of the discussion from the morning keynote session. More advanced examples of how an appraiser should function in the courtroom will be provided as well as follow up to and an elaboration on some of the issues and ideas covered in the morning program. Learning objectives include gaining an understanding of:

• How an appraiser can positively reinforce the conclusions of her/his report with published material from the government
• How an appraiser should explain the mistakes that could be made in rendering a less than superior appraisal (hint: one way to tactfully point out the deficiencies of a contrary appraisal)
• How to use examples, illustrations, analogies and hypotheticals to explain opinions
• What kind of demonstrative evidence is particularly valuable; raps for the unwary with the use of hypotheticals

2:30 p.m.–3:15 p.m.

Alternative Fuels: Industry Trends and Appraisal Opportunities

Catherine Rein, Candidate, Sandalwood Valuation and Consulting

This session will dive into two exciting new fields of machinery and equipment appraisal: solar equipment and biodiesel. We will explore the trends driving growth in these industries, the major manufacturers and types of equipment involved and the opportunities for appraisal work. Learning objectives include gaining an understanding of:

• Major industry trends in the commercial and residential solar markets and biodiesel industry
• The latest updates on solar equipment and sources for additional pricing and market information
• The latest on manufacturers and equipment types used in the solar industry and biodiesel industry
• Appraisal opportunities in the solar industry and biodiesel industry

3:15 p.m.–3:30 p.m.

Refreshment Break

3:30 p.m.–5:30 p.m.

Leasing and Financing: Assembling the Pieces of the Puzzle

Sharon Desfor, ASA, HeliValue$ Inc.; Charles T. McGuire, Asset Solutions Group; Tomoo Nakayama, ITC-Aerospace Inc.; Richard A. Newton, ASA, Chase Equipment Finance Presented by the Leasing and Financing Subcommittee of the Helicopter Association International

As an equipment appraiser, the bulk of your appraisals will be done for the purposes of leasing and/or financing. If you take the time to understand the loan and lease process, you will be able to provide the best possible information for your clients and intended users. This session will introduce you to some of the intricacies of capital asset leasing and financing. Learning objectives include gaining an understanding of:

• Structure options
• Lease vs. loan considerations
• Cross border and international leasing
• Equipment issues
• Default and repossession case studies

8:30 a.m.–Noon

CONCURRENT SESSION 1
Choice of Two Educational Tours

Attendance is limited. Sign up early. Ticket required. $25 per person.

• Tour #1: Kurt Manufacturing Company, Minneapolis
  A metalworking job shop with over 100,000 square feet of metalworking machinery, this facility has a diverse client base and offers a variety of services. These include, in part, CNC milling and turning, fabrication and machining, metal finishing and processing, complex automated and robotic assembly and testing, grinding, broaching and more.
• Tour #2: Kurt Manufacturing Company, Coon Rapids
  A metalworking manufacturer of work holding products, vises, tombstones and fixtures, this facility is where the Kurt Machinist vise is manufactured. Also produced is a full line of innovative products including CNC and CNC double vises and towers, manual or hydraulic vises and workholding, clamping, ToolBlox, custom, zero-point, custom gaging, precision measuring and accessories.

8:30 a.m.–12:30 p.m.

Jeffery L. Berg, ASA, ARA, Crown Appraisals Inc.; Rick Hauge, ARA, Rick Hauge’s Land & Appraisal Company

This session follows an actual sale of a large on-farm grain storage facility and farm headquarters facility. One presenter will show how he confirmed and analyzed the sale including all three approaches to value. The other presenter will pick up the financial analysis showing how a broker would look at the sale and how a CPA may analyze the impact of the acquisition on an individual farmer’s situation. Learning objectives include gaining an understanding of:

• Current RCNs for grain storage facilities
• How to abstract depreciation rates out of market sale
• How to abstract an OAR out of a market sale
• Units of comparison in large on-farm grain storage and headquarter facilities

12:30 p.m.–1:30 p.m.

Lunch Break (on your own)

1:30 p.m.–3:30 p.m.

Developing Depreciation Tables for High-Tech Machinery and Equipment: Quantifying Depreciation and Technological Obsolescence

Stephen Barreca, ASA, BCRI Valuation Services

The process of developing depreciation factors/tables involves modeling all forces of depreciation impacting the value of the subject property and then developing the composite life cycle, from which the economic lives, net depreciation and relative remaining value are readily determined. This session provides an overview of the life cycle process, outlines the primary techniques used to model technological obsolescence and ordinary depreciation, and demonstrates how to combine any number of depreciation forces to yield the composite life cycle. Learning objectives include gaining an understanding of:

• Life cycle analysis
• Service life development
• Economic life development
• Depreciation table development

3:30 p.m.–4:00 p.m.

Refreshment Break

4:00 p.m.–5:30 p.m.

Portfolio Valuations

Richard A. Hause, ASA, Grant Thornton LLP

The valuation textbooks provide detailed methodology on valuing machinery. The available approaches are clear when valuing a machine. The methodology becomes more complex when valuing an entire plant. Is the same methodology for valuing a machine appropriate when valuing an entire plant? What if you have 10, 20, 50 or hundreds of plants or locations? Does this change your methodology? This session answers these questions and more.

8:30 a.m.–12:30 p.m.

Terry Argotsinger, ARA, AFM, Stalcup Agricultural Service Inc.

As the need for energy independence increases and the search for alternative sources continues, wind energy has surfaced to fill the gap. This session will review the mechanics of a wind powered generator and the wind park development process. Local, state and federal policies will be discussed and land ownership issues will be reviewed. Actual sales and income analysis to develop the internal rate of return will be presented. Learning objectives include gaining an understanding of:

• The history and development of the wind powered operation
• The mechanics of tower operation
• Basic economics of wind generators
• Wind park development
• Impact on land ownership

10:30 a.m.–10:45 a.m.

Refreshment Break

12:30 p.m.–1:30 p.m.

Lunch Break (on your own)

1:30 p.m.–2:30 p.m.

Valuations for Financial Reporting: An Update

Douglas R. Krieser, ASA, Valcon Partners Ltd.

This session will provide an update of the various standards published by the Financial Accounting Standards Board (FASB) and how they affect the appraiser. The most recent versions of the standards and how they differ from the past/current standards will be discussed. Commentary will also be provided regarding performing valuations under the various FASB standards and will outline some of the issues specific to financial valuations. In addition, a discussion will be lead with those in attendance regarding their experiences in performing financial valuations and the issues they have encountered. Learning objectives include gaining an understanding of:

• The most current FASB standards
• How these standards affect the appraiser
• Performing valuations for financial reporting purposes

2:30 p.m.–3:30 p.m.

Audit Reviews of Appraisal Reports for Financial Reporting

Park R. Johnson, ASA, Deloitte Financial Advisory Services; Bradley J. Venisnik, ASA, Ernst & Young; Michael R. Crismyre, ASA, KPMG