BOD meeting October 2, 2022

 

San Francisco Suites

Board of Directors

Minutes of Open Meeting (draft)

October 2, 2022

 

I. Call to Order

President Meibeyer called the meeting to order at 11:10 a.m. The meeting was held via zoom, with only Cynthia in the Board Room, with President Meibeyer presiding online via Zoom.

II. Roll Call

Board Members present (via zoom):

Chuck Meibeyer, President

Jo Ann Trembath, Vice-President

Dwight Walker, Treasurer

Fred Munroe, Secretary

Jeff Reichel, Member at Large

Others present:

Cynthia Reid, General Manager

Bill & Eileen Neville, owners

Bob Goff, owners

Sue Josselyn, owners

Todd & Maureen Goolkasian, owners

III. Owners Forum:

There were no comments from the owners.

IV. Approval of Minutes:

The minutes from the June 26, 2022 board meeting, with no corrections, were moved for approval on a motion by Jo Ann, seconded by Dwight. With no further discussion, the motion carried
unanimously, with the minutes approved as submitted.

V. Treasurer’s Report:

  1. Dwight provided a report regarding the current financial status of the Suites as of July 31, 2022. He indicated that our cash on hand would cover 105 days of operation, but there are 153 days left in our operating year. This has been an ongoing issue and will be discussed further today, as we look at our budgeting for the coming year.

  2. As of July 31, 2022, the operating account balance was $311,445. The Reserve account balance was $899, 771.

  3. Dwight brought to the board’s attention the outstanding work done by Aaron and Cynthia to clean up the format of our balance sheet, giving us a clearer monthly picture of our overall
    financial status.

  4. The year-to-date budgeted revenue was $634,556, while the actual amount was $611,697. This shortfall was largely due to the decrease in projected bonus time income received.
    However, on the expense side, actual expenses were $588,283. A clear advantage over the year-to-date budgeted amount of $622, 713. Overall, revenue against expenses did show a favorable position of almost $12,000. Through July about $19,000 was spent out of
    replacement reserves for various projects. Chuck commented about our favorable 65% “cash to major replacement” position.

VI. General Manager’s Report:

  1. Related to Parlors sold and assessments collected, Cynthia has collected balances
    outstanding of $17,436, leaving an uncollected balance of only $8,120. 12 Parlors were sold and 12 other Parlors were adopted with assessments collected. Cynthia, in consultation with President Meibeyer, will be looking at alternative title/escrow providers to streamline this process.

  2. Related to shares in a transitional status: There is one Master in escrow, which was sold for $4000. There is also one Parlor considered a Deed Back, which will be sold. Cynthia thanked Chuck specifically for finding a way to bond for possible liens against this share, in order to clear up the issues impeding its sale. It will be sold, once all the needed paperwork has been finalized.

  3. As of the last meeting we had 7 shares in foreclosure. As of this meeting we only have 2.
    Cynthia indicated that once again with Chuck’s assistance, we were able to get these owners to clear the status of their shares and/or deed them back to the Suites.

  4. As of today, Cynthia stated she has collected the assessments on 812 shares.

  5. Some insurance coverage renewals have recently been completed. The ISU premium has remained the same. There was a small increase in the Farmer’s Insurance policy. The worker’s comp insurance has decreased by at least $2,400. Cynthia was pleased to tell us that we have had zero workers’ comp claims, over the past three years. This is a remarkable occurrence in the hotel industry. The medical coverage does not renew until January. Dwight asked about whether or not we should consider earthquake insurance. It was explained that, after
    reviewing this option many years ago, it was agreed the cost-benefit was unfavorable for the organization.

  6. Occupancy continues to be on the rise. Owners are pleased with our staff retention and the overall continuity as we strive to move toward a normal operating environment.

  7. Employees of the Quarter are Eric Ingersoll, Tony Verastegui, and Luis Martinez. Only Tony was present for today’s presentation. It is very unusual to have this honor presented to three
    employees, for the same quarter. Cynthia shared with all present the outstanding service
    provided by all three of these employees during a very challenging period this summer at the Suites.

VII. President’s Report:

  1. President Meibeyer provided a status review of the window shade project. The current quote of $50, 600 would include both the preferred “braided cord” and the addition of necessary fire retardant treatment on the fabric. Pamela, our decorator, brought to our attention that the valances on all windows need some remedial action. Her overall quote does include those repairs. Dwight expressed some concerns related to child safety, with braided cords. Chuck indicated that both cord types are considered child safe. A general discussion looked at many aspects of the two options. A motion was made by Fred to select the shades with the braided cord and approve the overall project with a slight increase in cost. The motion was seconded by Jo Ann. During a brief discussion, Chuck noted we need to instruct the installers to address the safest height for the placement of cord hooks. With no further discussion, the motion carried unanimously. Chuck indicated the plan is to carry out this project in January.

VIII. Old Business:

  1. The status of Parlor sales and the September Adopt a Parlor program were covered in the General
    Managers report above.

  2. Status and action related to the replacement of window shades were covered in President’s Report above.

IX. New Business:

  1. Reserve Study: Per direction from the board, after looking at the prior year’s reserve studies,
    Cynthia conducted a tour of the property, along with our contractor, electrician, heating/boiler contractor, and our elevator services provider. After their tour of the property, these service providers concluded that many of the scheduled 2022 and 2023 replacement items did not actually need to occur because those components of the Suites were in good condition. Cynthia’s itemized report was included in written format, having been delivered in writing to President Meibeyer and Treasure Walker. A full copy of this Reserve Study will be on file. Cynthia also noted that the written summary showed the incorrect annual cost for the fire panel certification. The corrected amount is $250.
    On the forward planning schedule for 2023, currently included items are the replacement of lobby wallpaper, the window shade replacements approved earlier, and the carpet replacement.

  2. 2023 Allocation to Replacement Reserve Fund (CM). Chuck summarized the Suites’ financial history in which the funds on hand run out approximately late October or early November each year so the Suites have to use funds from the following year’s Assessments that are received early to cover remaining costs through the end of the year. The President, General Manager, and Treasurer are recommended the Association correct this anomaly by foregoing the allocation of funds out of 2023
    Assessment of the Replacement Reserve Fund (based on the current healthy level of Reserves and ability to safely delay certain projects). This would be a one-time action to better align the revenue and expense balance moving forward. A motion to allocate all 2023 revenue to the operating fund, for one year only, was made by Dwight and seconded by Fred. On further discussion, the motion was amended to include the stipulation that any excess funds, which remain in the operating fund at the end of 2023, will prompt our further evaluation as to whether or not these funds are then shifted to reserves or remain in the operating account. With no further discussion, the motion carried unanimously

  3. Draft 2023 Budget: At the direction of the President and Treasurer, the General Manager provided two draft budgets for consideration. One is a 7% increase of $102 per share. The second draft budget is a 9% increase of $131 per share. This is a preliminary item with the item set to come back to the board at the November meeting for final action. It was moved by Dwight and seconded by Jo Ann to increase the 2023 assessment by 7% due to increased costs resulting from substantial inflation and supply chain issues that have raised costs for the Suites. With no further discussion, the motion carried unanimously.

  4. Consideration of Board Room Rental Rates: Cynthia is requesting the rental cost for board room event usage, including setup and clean-up, be increased to a flat $100. On a motion from Jo Ann and seconded by Jeff, it was moved to institute this increase. With further discussion, it was suggested this action not be taken until the chairs in the board room are
    replaced. This suggestion was not supported by the motion maker or the second. With no further discussion, the motion carried unanimously.

  5. Possible Change in Banking Relationship: Cynthia and Dwight indicated that our Axos CD account is scheduled (by the bank) to automatically roll over in mid-October. There is concern that because this would lock this account at a rather low-interest rate, the association needs to stop the automatic action. The desire is to evaluate our current banking relationships, over the next few months. This does require board action. Dwight moved to do so, and Jo Ann seconded. With no further discussion, the motion carried unanimously.

X. Next Meeting Date: meeting of the Board of Directors is November 5, 2022.

XI. Adjournment: On a motion by Fred, seconded by Jo Ann, the meeting adjourned

by unanimous consent at 12:49 p.m.

Fred Munroe, Secretary

General Manager letter November 2022

November 2022 General Manager’s Letter

The first day of November brings rain to San Francisco and with the chilly weather, thoughts turn to the holiday season which is rapidly approaching. I want to also remind owners that it is soon time to pay property taxes as the bills were sent out in October. If you are a new owner or have moved, you will need to go online to pay your tax bill or you can always contact me for assistance. I have gone to City Hall and spoken to the Tax Assessor about the addresses not being changed to the new owners and was told that due to the pandemic, there is a yearlong backlog, nevertheless, the property taxes must be paid, or your share will incur late fees.

Now back to celebrating the fall and making plans for Thanksgiving. Streamers of autumn leaves and garlands welcome you as you enter the SF Suites lobby and soon there will be the fragrance of hot cider and cinnamon in the air as you are offered a warm mug at check-in.

Many owners love to spend Thanksgiving dinner at The House of Prime Rib or Harris. If you have not already made reservations, you can always order online and bring your dinner back to the Suites to enjoy.

The Palm Court restaurant in the new Restoration Hardware Building called HR on Pier 70 is gorgeous and perfect for a special dinner out in SF. The restaurant, two cocktail bars, and a rooftop garden are nestled among the interior design galleries.

Recently, the Presidio Tunnel Top opened at Crissy Field on 210 Lincoln Boulevard. Guests are enjoying the view of the Golden Gate Bridge while taking the Cliff Walk. This is a wonderful place to take children, have a picnic, or warm yourself in front of the open-air fire pit. There are also food trucks available from 9 am to 6 pm daily.

The City is full of travelers, cable cars are spilling over with tourists and the outdoor parking lots are full of diners.

The Dream force conference in September was an enormous success, bringing in $40 million dollars in revenue while the attendees filled hotels resulting in a citywide occupancy of 85%.

The Mayor has filled her promise to bring back a safe environment in Union Square by adding more City Ambassadors and police. I attended a meeting at the Mark Hopkins that hosted GMs from Nob Hill hotels, restaurant owners, and The Chief of Police and Firefighters Associations to hear Supervisor Peskin explain the need for communities to work together to fight crime, the homeless crisis, and the need to keep the city streets clean. I have a great relationship with the General Managers of the Mark Hopkins and the Stanford Court and have received assistance in keeping our environment free of intruders and encampments.

Please call the front desk to make your holiday plans at the Suites and enjoy our beautiful

City by the Bay. As the poet, Ashleigh Brilliant wrote,

“There may not be a Heaven but there is a San Francisco”

We all look forward to welcoming you back to your home for the holidays!

Warmest wishes,
Cynthia Reid
General Manager
San Francisco Suites

11/1/22