San Francisco Suites

Open Meeting of the Board of Directors May 30, 2026

 

The meeting was called to order by President Geoffrey Bellah at 11:05 am. The Board Directors present were:

Geoffrey Bellah, President Nancy Hudson, Vice President Dwight Walker, Treasurer (Zoom) Jo Ann Trembath, Secretary

Fred Munroe, Director at Large (Zoom)

Others Present: Cynthia Reid, General Manager

Max and Sue Josselyn, Owners

President Geoffrey Bellah called the Open Meeting to order at 11:05 am. Roll call was conducted and a quorum was established.

Owners Forum: Owner Sue Josselyn commented that the plants on the roof looked attractive.

President’s Report: President Geoffrey Bellah gave the following report:

I would like to offer an explanation to the Association of our recent approval, in a

special meeting, of a contract to hire a real estate attorney. As you know, each member of this Association owns a share of real property here in San Francisco at the Suites, and it is not uncommon for us to receive requests from owners or from their trustees or heirs to give back to the Association their share or shares of ownership rather than their trying to sell the same shares on the open market. We appreciate these gifts, especially when we can then sell the same shares, extending ownership to new people and financially benefiting the Association.

One need for a real estate attorney derives from the fact that too often these generous gifts are not, in a legal sense, within the givers’ rights to give, due to flaws or irregularities in the titles to this property which every owner receives upon its legitimate purchase. Sometimes there is a forgotten or unknown or unreleased lien on the share. Sometimes the share was never moved into the owner’s trust or estate. Sometimes the share has multiple owners, all of whom must agree to the deed back, but who may not be available to do so, due to one or more of the dreaded three “Ds”: default, divorce, or death. Each situation seems very personal and seemingly intractable at the time.

Hence, our need for a skilled real estate attorney familiar with the unique system here at the Suites to help this grateful Association and the generous donors to it. Other complex legal issues involving ownership or corporation are also coming up more frequently that we cannot handle without consulting a real estate attorney precisely because our Association members are owners of this real property, not just members of a club or guests in a resort.

So, my report is an appeal to all members of this Association to make certain that your official tokens of ownership at San Francisco Suites are locatable, up to date, and in legal order. Doing so will prevent any legal complications from interfering with your full enjoyment of the Suites, or your ability to sell or gift your property when you are no longer able to use it.

Thank you.

Approval of the Minutes of March 7, 2026, Board Meeting: Dwight Walker moved and Jo Ann Trembath seconded the motion to approve the minutes of the Annual Meeting of the Board of Directors on March 7, 2026. The motion passed unanimously.

Treasurer’s Report: Dwight Walker gave the following report:

Introduction

This report provides a summary of the Suites’ financial activity for the year to

date, covering the period from January 1 through April 30. The report outlines income, expenses, and the current financial position to inform the Board and owners.

Income

Total Operating Income for the year to date includes all sources of revenue. As of April 30,

total income stands at $514,555. The breakdown is as follows:

• Membership Dues: $423,776
• Bonus Time: $12,073
• Sale of Shares: $10,344
• Rental Income: $50,821
• Interest Income: $2,305

Income was $1Sk over budget through April largely due to rental income.

Expenses

Total Operating Expenses for the period are $519,435, distributed as follows:

• Administration: $81,270
• Payroll-related: $325,556
• Repairs & Maintenance: $31,993
• Supplies & Services: $25,679
• Utilities: $29,536
• Bad Debts: $24,000

Expenses were $19,612 over budget through April with the largest variances being for Airbnb Fees of $7,528 that had not been separately budgeted. Upholstery Cleaning, Furniture Repair and Review/Tax Prep are over budget in total by $12,237 as a result of annual expenditures made in the period but budgeted across the entire year. Negative variances to budget for expenses were offset by lower-than-expected payroll expenses. Net Operating Income
The net operating income (loss) as of April 30 is ($4,881). Operating cash at the end of April was $783k which provides 191 days of operating funds vs. 245 days needed. That shortfall is the result of $131kin annual assessments not collected as of April 30. It will take continued diligence by Manager Reid to collect the remaining assessments, sell shares, and generate Airbnb revenue with room nights from nonperforming shares.

Cash Flow and Reserves

As of April 30, the organization maintains a replacement reserve cash balance of $846k. The projected reserve cash balance represents 50% of the “Fully Funded” balance reported in October 6, 2025, external reserve study.

So far in 2026 $67k has been spent on various reserve projects and another $26k is committed by the Board to complete the sofa bed replacement project.

Summary

The Suites remains in stable financial condition as of April. Continued attention to income generation and prudent spending will ensure sustainability through the end of the year.

General Manager’s Report: Cynthia Reid reported:

Financials

• Wells Fargo $157,195.45
• Fidelity Reserve $917,229.49
• Fidelity Ops $559,495.94

SFS Inventory (61)

• 61 non- performing shares
• 8 deed backs in progress (assessments paid)
• Sold 5 masters= $17,500 (assessment included)
• Adopted 2 parlors
• Adopted 5 masters

Total Revenue for January -May 2026 is $71,152.12

• Sale of shares $17,500

·Jan-May Airbnb $53,65212

• Total =$71,152.12

2026 assessments (758 assessments out of 816 have been paid)

• 16 owners have not paid the assessment= $31,640.30

· SFS 52 non- performing shares owed = $92,352

• 12 Delinquent shares will be placed in foreclosure in June Maintenance

Ongoing Business: General Manager Reid:

• Updated the Board on the sofa bed project. August is the estimated time that the new sofa beds will be delivered.

• Architect Kevin Hackett and Contractor Steve Barton are drawing up plans for the permanent Powell Street lobby entrance ramp and will present those plans to the Board at the September meeting.New Business: General Manager Reid:

Steve Barton and his crew completed the hallway floor panel and suite door trim repair and repainting project. Also, the outside siding and the Powell Street entrance were repainted along with the power washing of the two awnings.

24 chairs in need of repair or to be recovered are with Russian Hill Upholstery, and the work should be completed by the August Board meeting.

Forward Planning: Manager Reid:

The seven parlor suite mattresses and box springs will be replaced in July.

The hallway and staircase carpeting will be replaced in 2027.

Jo Ann Trembath moved that the meeting be adjourned and Nancy Hudson seconded the motion, which passed unanimously. The meeting adjourned at 12 noon.

Respectfully Submitted,

Jo Ann Trembath Secretary

The next Open Session Board meeting is September 19, 2026.