PostHeaderIcon Meeting Minutes June 11, 2017

                                                                                  DRAFT 

Minutes of the Open Meeting of the San Francisco Suites Board of Directors

Sunday, June 11, 2017

San Francisco Suites Board Room

 Call to order:  The open meeting of the Board of Directors started at 8 AM, with Board Secretary Lynne Spivak calling the assembled group to order.

The following Directors were present:

  • Geoffrey Bellah, President
  • Cynthia White, Vice President
  • Lynne Spivak, Secretary

Also in attendance was Cynthia Reid, General Manager

The following owners were in attendance:  Max and Susan Josselyn. 

Establishment of a Quorum:  With three Board members present, Secretary Spivak determined that a quorum was reached and that the Board could conduct its business at the meeting.

Vote on 2nd Amendment to the CC&Rs:  Spivak instructed the appointed Inspector of Elections, Sue Josselyn, to begin counting the votes for the amendment to the CC&R’s.   After doing so, Spivak adjourned the open meeting until 11 AM. 

Resumption of Open Meeting:  The Open Meeting of the Board of Directors resumed at 11:34 AM, with Board President, Geoffrey Bellah calling the meeting to order. 

The following Directors were present:

  • Geoffrey Bellah, President
  • Cynthia White, Vice President
  • JoAnne Trembath, Director-at-large
  • Jeff Reichel, Treasurer
  • Lynne Spivak, Secretary

Cynthia Reid, General Manager, was also present. 

The following owners were also present:  Chuck and Sheri Meibeyer, Jim White, Max and Sue Josselyn, Marian Freedman, Don and Charmaine Thomas.

With all 5 Board members president, President Bellah determined a quorum was reached and the Board could resume its business.

Owners Forum:  President Bellah opened the discussion to the members to bring up comments or concerns not on today’s agenda.  Don Thomas addressed the lack of shampoo in the rooms.  He was told that the policy is not to provide shampoo in the rooms, but that it could be obtained by contacting the front desk.  He was informed that the Suites provides soap for the showers and bathroom sink, sponges in the kitchen as well as dish soap.

Approval of Minutes:  President Bellah called for approval of the minutes. Cynthia White moved to approve the minutes, JoAnne Trembath seconded.  The minutes were approved with Lynne Spivak abstaining, as she was not present for the March meeting.

CC&R’s Amendment Vote Results:  Preceding the voting results, Marian Freedman spoke to how confusing the legalese in the Amendment was.  Cynthia White commented that Bellah sent out the follow-up letter to explain what the amendment was trying to do.  In the future it was suggested that a one or two sentence synopsis in plain English be placed at the bottom of any future amendments. 

Sue Josselyn, Inspector of Elections, reported that a total of 544 valid votes were cast, 8 votes were invalid with 66.67% of the owners participating in the vote.  Of the 544 valid votes cast, 513 “yes” votes to 31 “no” votes.  There are 816 shares owned; therefore; 409 “yes” votes were needed for the amendment to be adopted, so it passed.   President Bellah thanked the Board, Manager Reid, and the staff for their hard work in getting out the vote and instructed Cynthia Reid to record the amended CC&R’s and to mail out copies to all owners along with the recently revised Rules & Regulations which were approved in the previous meeting. 

Treasurer’s Report:  Treasurer Reichel reported Income and Expenses are on schedule.   His concern is that we are losing potential revenue by having our monies deposited with big banks that pay low interest rates, and he wanted to place the monies with an online bank that pays significantly higher interest rates.  The CC&R’s state that we have to use a bank in California that is FDIC insured.   We therefore obtained an opinion from our attorney as to what constituted a “bank in California.”  Satisfied that the two banks he is recommending meet those criteria, he will proceed with transferring the reserve funds from Bank of America to Capital One.  As for the operating account at Wells Fargo, he will work with Cynthia Reid to transfer all but what she deems necessary for the smooth running of the day-to-day functioning of the Suites (2 -3 months bills) and will then transfer the balance to another bank that pays a higher interest rate than Wells Fargo (i.e., 1% -.625%). After some discussion regarding the advantages and disadvantages of online banking, President Bellah informed the Board that we had already have approved the use of Capital One and B of I, and asked if we want to proceed or rescind that approval.  JoAnne Trembath said we should proceed with the previous approval.  Jeff Reichel is going to look into the possibility of dual signatures for the online banking. 

General Managers Report:

Financials:  Out of the 28 Parlors we have in inventory, fourteen were adopted in April.  Cynthia Reid will set up 10 Parlors for adoption and place 4 Parlors for sale on the website.   The 2016 net income was $53,000 from Suites revenue, sales and watching costs. This sum was transferred to the Reserve Fund.  She hopes to do that again this year.  She would like to post 10 on the website for adoption.  She currently has one parlor for sale on the website for $2000.  The board authorized her to reduce the price to $1500 plus the annual assessment.  Last year when she reduced the price to $1500 the parlors sold.  Hopefully she will be able to sell the 4 quickly.  The shares she does not get adopted she will attempt to sell. 

The current assessments owed are $22,863 and 5 shares are currently in foreclosure and the amount owed on them is $6315.80. 

Insurance:  The Workers Compensation Insurance premium has been reduced to $25,789 this year vs $29,739 last year, mostly because the Suites had no “workers comp” issues or claims. 

The Property Insurance premium is due September 1, 2017.   During Farmers Insurance’s property inspection the handrail on the roof was deemed not up to code and will need to be replaced or repaired. Cynthia contacted two contractors for bids.  Geoffrey Bellah will discuss that under “New Business.”  

Maintenance:  The sewer line in the downstairs bathroom backed up into the back office and water got onto the carpet in the reception area. Roto Rooter was called as well as a water restoration company to clear the line as well as clean up, disinfect, and dry out the area.  The plumber recommended that a service be contracted to clean the lines twice a year.  Cynthia Reid will check the cost of routine cleaning of the lines twice a year.  Her concern is not only with the backup; she is also concerned about the old main line in the building.  Cynthia White mentioned the line was replaced in the 1980’s.  Jeff Reichel suggested to Cynthia Reid that she put a line item in the budget for a reserve fund for the main sewer line over ten years and she said she would make sure that was done. 

Key locks – Two suites have already been re-keyed and the Board has given approval for all of the rooms to be re-keyed.  This should be completed within the month. 

Kitchen Shades – The Board has also approved blackout shades for the kitchens.   The reserve funds budgeted for shades in 2017 in the amount of $14,500.  The cost of the kitchen shades is $3,928 installed.  Geoffrey Bellah asked if the other blinds were in good condition.  Chuck and Sheri Meibeyer mentioned pinholes in 41 that looked like kids just randomly put holes in all the shades.  Cynthia Reid mentioned the problem we are having with the shade pulls. When the company came out to measure for the kitchen shades, they said the pulls were not installed correctly.  It could cost $30 per blind to repair, but he would give her a bid.  She will have that for the next board meeting. Geoffrey Bellah reiterated that of the total reserve for shade replacement we were using just $3000 and asked if the other shades are in good condition at this time.  Cynthia Reid replied “yes”. 

Cracked window panes – There is a cracked window behind the hanging stained glass window in 44 that Cynthia Reid will have replaced, and another stained window glass in the 2nd floor hallway that needs to be repaired.  That is on Reid’s to-do list.  

The total for Pamela Murphy’s remodel of the 4’s, including the elevator was $73,961.14.  Reid has received positive reviews from owners on the remodeling of the 4’s as well as the elevator. 

On a not-so positive side, Cynthia Reid informed us of a problem she has had with the Suites’ antique restorer, J & H Antiques.  She gave J & H two  red chairs and a small side table along with a $500 deposit.  J & H was moving to a new location and promised faster service; however, now the company’s owner and location cannot be found, hasn’t returned phone calls or emails. Reid now plans to make a police report and report the loss to the Suites’ insurance.  She also has to locate a new company to repair chairs and tables.

Personnel:  Cynthia Reid hired a new housekeeper, Sophia. Our housekeepers that haven’t taken time off can now start taking their vacation.

New Business:  Don Thomas asked if it was normal practice to get more than one bid on a project the size of the railing on the roof.  Cynthia Reid said that two bids had been received.  Geoffrey Bellah reiterated the time constraint we were under with Farmers imposing a July 1 deadline.  Don Thomas recommended that we also get a bid from Marchetti Construction and will provide Reid with contact information. 

Geoffrey Bellah reiterated the information about Farmers Insurance Company’s inspection and demands and how the need for the safety rail along the roof walkway came about. Farmers wants to be able to prevent anyone from climbing under the rail and onto the roof and possibly falling off the roof.  He discussed four types of fences or railings. One bid, by Steve Barton, is metal railing with metal pickets spaced 4 inches apart.  That is the most expensive option. The next is redwood pickets constructed and attached to the framework that is there.  The redwood construction would darken overtime and match the floor in the gazebo.  Bellah offered a suggestion to put in clear acrylic plastic panels rather than metal or wood pickets.  Steve Barton said that the problem with the clear plastic panels is that over time they would possibly crack and/or fog up. Also they wouldn’t block any view of the stuff on the roof, and would get wobbly.  The fourth option would be to replicate the decorative metal panels on the gazebo and install them along the walkway.   Bellah and Barton then discussed a landscaping project on the roof that the Board has talked about for years. The Board discussed the possibility of adding landscaping to the roof, with perhaps a drip system, as a way to soften the impact of the new railing. After much discussion about the four different options, with or without landscaping and the costs associated with them, Cynthia White made a motion that we get bids from Barton, Madden, and Marchetti for 1) metal perforated panels with a design similar to the gazebo’s, powder-coated if possible and 2) redwood pickets with framing to attach to the existing railing.  JoAnne Trembath seconded the motion. Owner Max Josselyn suggested benches be installed along the walkway as well. White suggested that, in the interim, a sign be placed on the inside of the door to the roof stating “no unaccompanied children on the roof.” Reid asked for a maximum amount we would consider. Reichel responded that the bids should come in first. With there being no more discussion, Bellah called for a vote. It passed 5 – 0. 

Bellah moved on to other new business, the sewer pipe maintenance plan. Trembath moved to adopt the maintenance plan to have the sewer lines cleaned out twice a year.  Spivak seconded.  The President called for any discussion.  Hearing none, he called for a vote.  It was unanimous in favor of the plan. 

Employee of the Quarter: Eric Ingersoll, the Front Desk Supervisor has been named the Employee of the Quarter. Bellah read the award letter which commended Eric for discovering an exchange guest who tried to sell his week at the Suites on eBay. Eric contacted the exchange company who took swift action and blocked the guest from ever exchanging at the Suites in the future.  

Other New Business:  Trembath would like for the manager or the Board to investigate why the exchange company, RCI, gives the Suites just 40 points out of 60. Reid and others pointed out this score as a recent downgrade which may have been the result of putting exchange guests in the “4” parlors which have now been significantly upgraded. Cynthia White suggested that the Board find out how many points the different exchange companies give the Suites, and then let the owners know.

Bellah brought up the issue of owners who have rented out their share time in the past. If they do so now in light of the amendment passing, what penalty do we assess?  Cynthia White suggested that we send a letter to the owners of any rented shares and tell them they are in violation of the CC&R’s. If they persist, they will they will no longer be an owner in good standing.  As for an owner who has already rented and reserved time, we will honor those reservations made before the passing of the amendment, but not in the future.  

White asked for the protocol for someone paying the assessment every year and not using the unit. What is the best way to dispose of a not-used share? Reid said the owner could deed it back, but would want to make sure the taxes are paid. The owner could also list it on the website and sell it. 

The next meeting is Sept. 17th, 2017                            

 

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