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AASHTO 2006 Clearinghouse Report

Assignment of Review Appraisers

The Washington State Department of Transportation requested a survey from the other states regarding the following. Washington was interested in knowing whether any other State Right-of-Way Directors had undergone a major restructuring of their organizations and/or operations in the past five years. Of particular interest was assigning Review Appraisers to Region Offices and privatizing their Property management activities.

ALABAMA

  1. Our "normal" process is to make final appraisal reviews in the Central Office. However, due to manpower limitations in the Central Office, in order to expedite the process, we more and more delegate final review on tracts with value less than $100,000 to Division (region) staffs. We believe this is a minimal compromise of consistency and quality that has worked well with no significant problems. The benefit of delegating this authority to Divisions is a significant time savings and the downside is slightly less confidence in the product, with emphasis on "slightly".

ALASKA

AKDOT tried having a review appraiser in the Region but it caused problems - so the review appraisers are still situated in HQ. We have not had the opportunity to contract out the review process.

Property management is handled in the Regions. Very rarely we've used private contractors for some sale of excess property.

ARKANSAS

  1. AHTD Review Appraisers work out of the Central Office.

  2. AHTD Property Management functions are also centralized.

FLORIDA

Benefits for regional offices for review appraisers:

  1. Reviewers live and work in the area of responsibility. This allows reviewers to be better aware of the forces and factors affecting market value within neighborhoods, and project locations.

  2. The reviewers will build good working relationships with local governmental officials within zoning, planning, and the property appraisers' offices. Also, they will become better acquainted with local developers, appraisers, and real estate brokers.

  3. Travel time is reduced for project, property and comparable sales inspections.

  4. Appraisal issues and problems are resolved quicker, with better attention to detail.

Challenges for decentralization:

  1. Regional offices tend to become independent. This may create a lack of control concerning enforcement of statewide appraisal and review standards. Individual managers become more of the decision makers concerning the appraisal process and appraisal review function.

  2. Inexperienced appraisal managers and staff members could be making poor decisions concerning the day to day functions of an appraisal and appraisal review office.

  3. Educational needs and on-the-job training may not be a priority in regional offices. Central office should still monitor (sample work product) and provide training functions in order to ensure adequately trained staffs.

    Note: Quality control would be at the regional level, while the central office would be responsible for quality assurance (monitor the regional offices processes and plans).

  4. Maintaining additional office space throughout the state could increase operating costs.

GEORGIA

Our reviewers are assigned to the General Office with state wide responsibility. However we typically have a Reviewer who is mainly assigned to cover a District whether it is actually doing the review or auditing a project.

Property Management here is headed by Barry Baynes at 404-657-8490.

HAWAII

Regarding Property Management Function, we are in the same boat. We are planning to outsource some of the functions like leasing & inspections & probably disposal of remnant/excess lands but we are only in the preliminary stages of drafting specs. One of our other Divisions tried it & we are looking to them to determine what type of problems the encountered.

ILLINOIS

Illinois DOT does have review appraisers in our district offices. We also contract some of our review work. Feel free to contact my Chief Appraiser (one and only!) Ms. Teri Pointer at the e-mail above or by phone at 217-782-3982.

We still utilize a combined district/central system for property management. However the idea of contracting some portions of that activity has crossed our minds. I'd be interested to know what you come up with.

LOUISIANA

  1. We are considering assigning our Review Appraisers to our Region Offices rather than Headquarters where they have historically reported. If your state's Review Appraisers report to your Region Offices please provide a name and telephone number for someone who can discuss the benefits and challenges created by this organizational structure.

    Our Review Appraisers are centrally located.

  2. We are also considering privatizing much of our Property Management activities. We are contemplating centralizing our Property Management activity in our Headquarters Office and utilizing contractors statewide to accomplish much of the work. We would appreciate a contact in any state where the Property Management is done (even partially) through consultants and/or where your Property Management Program is handled in a central location.

    Our property management activities are all done in-house at this time by a centrally located unit. Our Property Management Officer is Deborah McKneely, 225-237-1205.

MASSACHUETTES

  1. Review appraisers report to headquarters appraisal administrator.

  2. Property management is done with state personnel. It is handled through a central location; however, given that we do not have a significant inventory of structures, we are probably not in a position to offer guidance relative to central vs. regional or staff vs. consultants.

MINNESOTA

Minnesota DOT has decentralized many of its right of way acquisition functions, including appraisal and property management, to the 8 District offices. However, appraisal review and certification has remained in our Central Office, handled by 4 experienced staff review appraisers; with the exception of our Metro District. Metro District has sufficient experienced and licensed appraisal staff to keep the appraisal review function separate from the appraisal function. The smaller Districts do not have sufficient staff to maintain separation, nor do they have the experience/licensing needed for all appraisals. The majority of our appraisal reviews are completed by in-house staff; either Central Office or Metro District; however, Metro District has hired several fee review appraisers to help with peak workloads. The contact person at Metro District is Ms Deb Anderson-Sleeper, 651 582-1658.

Minnesota DOT property management functions (leasing, sales, re-conveyances) are handled in-house by the District Office staff, with advice from our Central Office staff.

MISSOURI

  1. We are considering assigning our Review Appraisers to our Region Offices rather than Headquarters where they have historically reported. If your state's Review Appraisers report to your Region Offices please provide a name and telephone number for someone who can discuss the benefits and challenges created by this organizational structure. See contact information below.

    Missouri went from three centralized reviewers to chief appraisers in each of the 10 districts. Those chiefs review the district's appraisals from a staff of 2 to 5 appraisers, as well as any fee appraisals.

  2. We are also considering privatizing much of our Property Management activities. We are contemplating centralizing our Property Management activity in our Headquarters Office and utilizing contractors statewide to accomplish much of the work. We would appreciate a contact in any state where the Property Management is done (even partially) through consultants and/or where your Property Management Program is handled in a central location. Missouri has a strong centralized oversight of property management.

    Missouri only uses consultant appraisers in the property management function, and occasional realtor listings.

MONTANA

In Montana we have review appraisers in district offices and in the central office. The district reviewers are however, assigned to the central office. Contact is Paul Brown, Appraisal Manager 406-444-6069.

Our property management activities are centralized and we have made some use of private property management resources, particularly to handle rental properties. Contact is Shane Mintz, Real Estate Services Manager 406-444-6071.

NEBRASKA

  1. Nebraska is completely centralized.
  1. Since we are completely centralized, we'd fit the part about being centralized. If you'd like to talk further, Frank Blankenau, Property Management Supervisor, would be a place to start. His phone # is 402-479-4770 and his e-mail is: fblanken@dor.state.ne.us.

    As always, I too would be glad to visit about our little operation here in
    Nebraska.

NEW JERSEY

NJDOT has its reviewers assigned to the regional offices. David Kook, our appraisal section supervisor, can give you more information if necessary. Dave can be reached at (609) 530- 5596.

With regard to your property management section, we had this activity solely out of our HQ's office. Up until the current time we have not utilized any consultants to assist us in this task. However, we are most likely in the same boat as most other agencies, i.e. too much work and too little staff. As such we are now looking seriously at supplementing our staff capabilities with consultant resources in this regard.

NEW YORK

  1. NYSDOT has both Regional Review Appraisers and Main Office (Headquarters) Review Appraisers. The Regional Review Appraisers review all appraisals and are authorized to establish Fair Market Value offers for acquisitions up to $15,000. The Main Office Review Appraisers review all appraisals exceeding 15,000 establish Fair Market Value offers for acquisitions exceeding $15,000, all Court of Claims appraisals and property management appraisals. You may e-mail John Dessena (Acting Director of Appraisal Management Bureau) at jjdessena@dot.state.ny.us if you have questions about Review Appraisers.

  2. The majority of NYSDOT Property Management activities are handled in our Regional Offices but Main Office also is involved in some of the activities. Use and Occupancy permits are approved by the Director of the Real Estate Division in the Main Office. Surplus Property disposals are approved by the Property Executive Review Group (Main Office). So there is a mixture of Regional and Main Office involvement in Property Management issues. You may e-mail Mary Marocco (Director of Property Management Bureau) at mmarocco@dot.state.ny.us if you have questions about Property Management.

OHIO

Ohio does have its review appraisers located in its regional offices. You can contact Doug Maitland (614.466-6803) or Kevin O'Grady (614.466-5054) to discuss the pros and cons of this arrangement.

Ohio is currently outsourcing some minor aspects of property management, but not in a big way. Steve Cheek (614.466-3877) can be contacted to discuss what we are doing. In addition, I facilitated a discussion on this at AASHTO in May and both South Carolina (Oscar Rucker) and Utah (Lyle McMillian) were doing much to outsource the majority of their PM activities.

SOUTH CAROLINA

South Carolina is primarily centralized, but within our four regions we do have review appraisers signed to District personnel. The contact for our appraisal section is Rick Callaham. Property Management is a centralized operation and we currently have two Real Estate firms working for us. Ron Hodges is our contact for Property management. Both can be reached at 803-737-1400.

UTAH

  1. Utah is in the 2nd year of a pilot program to test the benefits of assigning Review Appraisers to the region office. I've attached a power point presentation of the pros and cons from the first year.

  2. We have been outsourcing some of our property management for several years. Craig Fox is our property manager, and he can answer any questions about lessons learned, etc. (his phone number is 801-965-4217)

VERMONT

  1. Vermont has only one review appraiser assigned to the main office. Fee review appraisers have been used but the State's review appraiser reviews their work and makes the final determination of fair market value.

  2. We are also considering privatizing much of our Property Management activities. We are contemplating centralizing our Property Management activity in our Headquarters Office and utilizing contractors statewide to accomplish much of the work. We would appreciate a contact in any state where the Property Management is done (even partially) through consultants and/or where your Property Management Program is handled in a central location.

    Our property management activities are handled in the main office. Private firms are used only for such things as removal of trash and hazardous materials. The contact person is diane.colgan@state.vt.us.

WISCONSIN

  1. Our main Review Appraisers still report to Central Office. We also have

    Region Review Appraisers in each region but they are only authorized to approve non-complex appraisals of $10,000 or less. I'm assuming you are looking for States that have moved all of there review appraiser activities to the Regional offices.

  2. Doesn't look like we can help you with this issue either. The majority of our property management is handled at the Region level and we have not consulted out any of our property management with the exception of our razing contracts which are managed by our construction office. If you'd like information on razing contracts, you can contact Don Miller, the director of the Bureau of Project Development in which construction is housed. His phone number is (608) 266-3707

WYOMING

Wyoming's property management is handled from the Cheyenne office, however, it is all done in-house.

Updated: 09/05/2014
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