San Francisco Suites
Minutes of the Board of Directors
January 18, 2025

President Geoffrey Bellah called the meeting to order at 11:02 am. The Board Members present were:

Geoffrey Bellah (President)

Jo Ann Trembath (Director at Large)

Fred Munroe (Vice President)

Dwight Walker (Treasurer)

Nancy Hudson (Secretary)

 Others Present: Cynthia Reid (General Manager)

 Owner Present: Vin Berg

 Owners Forum: The owner expressed his love for the Suites and acknowledged the board’s efforts to address revenue loss due to members giving back shares.

 President’s Report: Two board members’ terms are ending: Dwight Walker (Treasurer) and Fred Munroe (Vice President). Both are running for reelection. The President expressed gratitude for their service, highlighting their dedication, intelligence, and hard work.

 Approval of Minutes of November 2, 2024, Board Meeting: Fred Munroe moved

to approve the minutes of the November 2, 2024 Board Meeting, with the acknowledgment of the challenges in preparing them due to a technical issue with the recording. Jo Ann Trembath seconded the motion which passed unanimously.

 Treasurer’s Report:

• $359,000 was collected in November from owners paying 2025 assessments.
• 2024 had a shortfall of $59,000 in uncollected assessments.
• Cynthia Reid’s efforts in selling deeded-back shares and the Airbnb rental program offset the shortfall by $55,000.
• Reserve cash balance at the end of November was $645,000.
• $145,000 was spent from reserves during the year, mostly in January, with limited emergency expenditures thereafter.
• Year-to-date revenue was $68,000 over budget due to the sale of shares and the rental program.
• Expenses were $11,000 over budget, largely due to ownership resolution expenses.
• Payroll expenses were $9,000 under budget through November.
• Interest earnings for 2024 were approximately $34,000.
• Projected interest rate for T-bills and certificates of deposit is 4%, exceeding the budgeted 3.5% for 2025.

 General Manager’s Report:

1. Operations Report:

• 546 shares have paid their assessments to date, with 270 shares remaining to be collected by February.
• The collection of assessments this year was almost double that of the previous year at this time.
• The General Manager attributed the positive trend to a renewed sense of optimism among owners, highlighting positive feedback and increased bookings.
• The Airbnb program has received excellent reviews, with guests praising the property, staff, and location.
• The property is ranked among the top 10% most loved properties in San Francisco on Airbnb.
• May 5th for three days is scheduled for carpets, drapery, and upholstery cleaning.
• The boardroom dishwasher was replaced for $569, paid through the reserve.
• Repairs are needed for a Murphy bed in 43P, an oven in 42, and carpet damage in 43.
• New plants were added to the entrance.
• Soap dispensers in bathrooms have received positive feedback.

2. Delinquent Accounts, Foreclosure Actions, and Disposition of Association-owned shares:

• There are currently 33 San Francisco Suites-owned shares, 22 of which are non-performing.
• 11 shares have been adopted, and 15 deed-backs are in progress (5 masters, 10 parlors).
• 11 shares owe assessments totaling $19,490.
• Four of the shares in deed-back have paid the assessment.
• Masters are being sold for $3,500, including the 2025 assessment.
• The VOTA Delinquent Assessment Foreclosure Auction will offer 7 shares for sale.
• If no one bids at the auction, the shares will be written off for 2024, increasing the 2025 inventory to 55 non-performing shares.

3. Employee of the Year:

• Erik Teedev, Front Desk Supervisor, was named Employee of the Year for 2024. He was recognized for his leadership, assistance during the January 2024 remodel, and implementation of the Airbnb program.
• Gloria Soto, Head Housekeeper, was recognized for becoming a U.S. citizen.

 Ongoing Business:

1. Airbnb Report (CR):

• Airbnb revenue from July to December was $30,000.
• $21,000 is already booked for the current year, with projections of $70,000 or more by year-end.
• Airbnb guests pay 200 dollars per night to stay in parlors, plus fees and hotel taxes.
• Bookings can be made up to 270 days in advance, similar to owner reservations.

2. SFS 2024 Sales and Adoption Report (CR):

• 17 masters were sold at $3,500 each, generating $59,500.
• 9 parlors were sold, generating $16,443 (assessment + $100).
• Total revenue from share sales was $75,943.
• Most sales were from owners bringing in friends.
• A complimentary night stay is offered to prospective buyers referred by owners.

 New Business:

1. Deed Back Procedure Revised:

• The revised procedure allows owners to use their seven days while the deed-back is in process, which can take 6-8 months.
• Advance notice and the annual assessment must be paid by March 31st for the owner to use their seven days during the deed-back process.

Fred Munroe moved to accept the proposed changes. Jo Ann Trembath seconded the motion which passed unanimously. The revised language will be circulated by email.

2. 2025 Kaiser Premium Increase (CR):

• The Kaiser premium increased by 16.56%, resulting in a monthly premium of $8,046.33.
• Nine employees currently have Kaiser benefits.
• Employees currently pay $80 per month towards their benefit.
• The board discussed increasing the employee contribution to $100 per month to help offset the premium increase.

Dwight Walker moved that the employee contribution be increased to $100.00 per month. Fred Munroe seconded the motion which passed unanimously.

3. Call For Nominations Report:
   • One application has been received by an incumbent board member.
   • A second application is expected from an incumbent board member.
   • No other owners have applied.
   • Applications are due by February 1st.

4. VOTA 2024 Delinquent Assessment Auction held on February 2, 2025 (CR):

• Seven shares will be auctioned on February 2, 2025.
• The cost is $15,747.90. If no one bids, the shares will be written off for 2024.
• Outstanding taxes are also owed on these shares.

5. Imperial Valet Parking Increases to $60 (CR):

• Valet parking has increased to $60.
• The Suites pay $55 to the Mark Hopkins garage, and $5 is revenue for the Suites.

6. Breakfast Items and Minibar Increases Report (CR):

• The cost of breakfast items is deemed reasonable.
• Minibar prices, mostly at $1, will likely be increased.

 Forward Planning:

1. Replace hallway and staircase carpeting in 2025 The board will discuss this further and seek an installer in San Francisco.
2. Mattress replacement in 2025

 Adjournment: Dwight Walker moved that the meeting be adjourned at 1:28 pm. Nancy Hudson seconded the motion which passed unanimously.

 Respectfully Submitted,

 Nancy R. Hudson