B.O.D. May 4th

Draft of Minutes

San Francisco Suites
General Meeting of the Board of Directors
May 4, 2024

1. President Geoffrey Bellah called the General Meeting to order at 11:15 AM. The Board Directors present were: Geoffrey Bellah, President

Fred Munroe, Vice-President (via ZOOM)
Dwight Walker, Treasurer
Nancy Hudson, Secretary
Jo Ann Trembath, Director-at- Large (via ZOOM)

Others Present: Cynthia Reid, General Manager

2. Owner’s Forum: No owners were present.

3. Presidents Report: A major focus of today’s meeting is the Association’s anticipated revenue shortfall due with three apparent causes:

  • Increase in Parlor owners requesting deed backs, resulting in Association-owned shares which currently cannot be adopted or sold

  • Increase in delinquent owners not paying assessments, with the possibility of many non-performing shares in foreclosure

  • Anticipated increase in property insurance premium due in the fall

On a positive note, President Bellah, Treasurer Walker, and General Manager Reid have been working on these issues and have several proposals to offer today which will address and hopefully alleviate them.

4. Approval of Minutes: Motion to approve the minutes of the March 9th meeting was made by Walker, seconded by Hudson, and approved unanimously.

5. Treasurer’s Report: Treasurer Walker stated that cash on hand was $868K, which will cover operating expenses for 248 days. However, there are 275 days remaining in the year, so currently there is a shortfall of 30 days or $100K. This should be addressed through continued collection of delinquent assessments and increasing revenue. Expenses are being well managed by Manager Reid. The projected cash balance in Reserves for the end of the year is $549K, but this year Reserves should be used for emergency expenses only.

6. General Managers Report: Manager Reid stated that the current inventory is 20 shares, with one Master and three Parlors in escrow. There are currently 19 deed backs in process, which takes six to eight months to close. Once closed, Association-owned Masters can be sold for $3500 (including assessment) plus two weeks, not one, of share time for the first year. Twelve delinquent shares belong to owners not responsive to our appeals and five of these owners are deceased. In the past these could be sent to foreclosure. Three Association-owned Parlors have been sold for $100, plus assessment; one Association-owned Master has been recently sold and one Parlor has been adopted. In terms of maintenance, Manager Reid mentioned that several doorway thresholds require refinishing, that bathroom grab bars have been repainted and bathtubs re-caulked, and that drapery lining in several suites requires repair.

7. Ongoing Business:

  • Rules and Regulations revised – A motion to change the Rule on Bonus Time to allow reservations within fourteen days was made by Munroe and seconded by Trembath. It passed unanimously.

  • The proposal to install body wash/shampoo dispensers in the bathroom was tabled to a future meeting. Walker so moved and Hudson seconded the motion, which passed unanimously.

  • During recent Adopt-a-Shares, Four Masters were adopted in March, and one Parlor in April. Manager Reid will send out an announcement for another Adopt-a-Share in June.

8. New Business:

  • Manager Reid brought to the Board’s attention the increasing number of uncollected 2024 assessments and requests for deed backs. At the moment there is $107K in uncollected assessments for 2024. There are 20 non-performing shares in the Association’s inventory, and 18 deed backs in process. The Board discussed the issue with non-responsive and deceased owners, deciding that the five deceased owners’ shares should be sent to foreclosure. Regarding the other eight delinquent shares, since our repeated requests for payment have been ignored, the shares will be sent to a Collections Agency. President Bellah and Treasurer Walker will work with Manager Reid to facilitate this process.

  • The CC&Rs, in the Second Amendment, prohibit owners from renting out their share time through vacation rental sites like Airbnb. According to our attorneys, this restriction on individual City Share owners does not apply to the City Share Association. To try to decrease the expected shortfall in assessment revenue, the City Share Association is hoping to start a rental program with Airbnb, in which only non-performing shares’ time would be offered. President Bellah offered a draft of a new rule for the Rules & Regulations which would summarize and clarify this distinction. After some discussion of the rule’s wording, the Board agreed to move forward on this rental program by posting the proposed new rule for the membership’s review.

  • In the past, the few deed backs were accepted by the Suites with no cost to the owner except the transfer fee. Recently, with an unprecedented number of deed back requests, President Bellah and Treasurer Wright have instructed Manager Reid, starting immediately, to require payment of the annual assessment and property taxes in addition to the transfer fee of $350 before the deed back can be processed. Munroe moved and Trembath seconded that any deed back must be initiated by October 31st of the current calendar year. Deed backs initiated after that date will be subject to the following year’s assessment. The motion passed unanimously.

  • Manager Reid stated that she will get a proposal for repairing the drapery lining.

  • The Board of Director’s Retreat, focused on marketing the Suites, will be held on Friday, August 9, 2024, starting at 10:30 AM in the Board Room

  • Munroe moved and Trembath seconded a motion to accept the proposed revision in the Rules and Regulations regarding Board Room rental, replacing the differentiated fee structure with a flat $100 fee for renting the room. The motion passed unanimously.

9. Forward Planning: Hallway and staircase carpeting will need to be replaced in 2025.

10. Trembath moved and Munroe seconded a motion to adjourn the meeting. The motion passed unanimously, and the meeting was adjourned at 1:09 pm.

The next General Meeting of the San Francisco Suites Board of Directors will be on August 10.

Nancy Hudson, Secretary