San Francisco Suites
Association Annual Meeting
March 9, 2024

1. President Chuck Meibeyer called the Annual Meeting of the City Share Association of San Francisco Suites on Nob Hill to order at 11:00 AM. The Board Directors present were:

Chuck Meibeyer, President
Fred Munroe, Vice-President
Dwight Walker, Treasurer
Geoffrey Bellah, Secretary
Jeff Reichel, Director-at-Large

Others present: Cynthia Reid, General Manager; Jo Ann Trembath, Owner; Don and Mrs. Thomas, Owners; Sue and Max Jocelyn, Owners.

2. Board Election: President Meibeyer announced the election of two new Board members, Jo Ann Trembath and Nancy Hudson, to fill two upcoming vacancies on the Board. Because there were only two announced candidates for the two openings, the Board could forego holding a vote by the membership, and Trembath and Hudson won by acclamation.

3. Owners Forum: One owner commended Manager Reid and the Board for taking safety measures and preparations in case of emergencies. Another owner urged the Board to consider including San Francisco property taxes in the annual assessment. A third owner praised the new lobby wallpaper and suite carpeting and alerted the Board to several maintenance items.

4. President’s Report: Longtime Board member and outgoing President Chuck Meibeyer presented a listing of accomplishments while he has been serving on the Board.

5. Approval of Minutes: The minutes for the January 6, 2024, open meeting of the Board were unanimously approved, following a motion and a second by Munroe and Reichel.

6. Treasurer’s Report: Treasurer Walker stated that with the exception of one owner, all receivable accounts were paid at the end of 2023, with a “bad debt” expense of $35K. Operating expenses for 2023 were over budget by $106K, due to the above “bad debt,” insurance increases, and payroll for overtime. (The latter has been remedied for the future.) The Reserve fund benefitted from $26K in interest income. We will continue to earn interest income for our Reserve Fund deposits in 2024. At the end of January 2024 there were still 134 shares whose assessments had not been paid, and Walker urged owners to pay their assessments when due. A motion by Munroe to open a new account, with a second by Reichel, for the investment of operating funds passed unanimously.

7. General Manager’s Report: Manager Reid reported that the Association currently owns 32 shares, with $55K in lost assessment revenue. However, we have four Association-owned Master shares currently in escrow. One master share and one Parlor share are posted for sale on RedWeek, and we have adopted three Masters for the coming year. At this time we have 15 Deed Backs, with lost assessment revenue of $26K. Regarding the 2024 assessments, 97 owners have yet to pay, and a 10% late fee has been added to their accounts. These delinquent owners have been contacted, and some have agreed to payment plans to avoid foreclosure proceedings commencing in April.

A new parquet kitchen floor has been installed in 45. A water leak from the second floor was discovered during the wallpaper removal in the upper lobby and repaired. Several instances of poor or faulty carpet installation were corrected in February.

8. Ongoing (formerly “Old”) Business: During the scheduled January 2024 closure, two major improvement projects were completed: the replacement of both lobbies’ wallpaper, and the installation of new carpeting in all suites, with the exception of the “4”s. Two shares, a Parlor and a Master, have been posted for sale on RedWeek, and there has been some interest generated there.

A motion to change the Rules and Regulations to allow a Bonus Time reservation two weeks ahead of arrival (instead of the current one-week) was made by Bellah and seconded by Munroe. After some discussion of the benefits to owners in accessibility and the Association in revenue, the application of the weekend reservation restriction to Bonus Time was raised. Since the R & Rs do not clearly address this, the second was withdrawn and the motion was tabled until the full language of the R & Rs regarding Bonus Time can be revised.

President Meibeyer urged the Board to try to contact private clubs in the vicinity as a potential new market for sales. The Board also affirmed Manager Reid’s ability to offer potential new owners complimentary nights in a suite, if there is availability and no owner would be inconvenienced.

The proposal to install body wash and shampoo dispensers in the bathrooms was postponed until a future meeting.

9. New Business: President Meibeyer summarized the situation of many longtime owners at the Suites who may have liens on their shares due to their taking out loans when they first purchased their shares, which may or may not have been paid back. Given the time that has elapsed and the fact that many of the original lenders are no longer operative, it is important that these owners accept the need for bond insurance from the title company when they sell their shares. Of course, it is not required; anyone can buy a share that has a lien on it. But there is a legal risk, albeit a small one.

Meibeyer moved and Munroe seconded a motion to affirm the Association’s commitment to sell shares only with titles clear of liens unless the buyer is willing to sign off on the share purchase knowing it has a lien. The motion passed unanimously.

Israel Garcia, the Suites’ maintenance manager for over 20 years, was acknowledged as “Employee of the Year 2023” by the Board and given an honorarium. Garcia said that he’s motivated by a love to help people.

Manager Reid reported that four Master shares with large tax bills have been adopted.

According to legal counsel, in the absence of a Board election, the Board can vote to approve the IRS Revenue Ruling 70-606, which allows the Association to move any income into the following year’s operating account. Munroe moved and Bellah seconded a motion to make such a move, and the motion passed unanimously. Manager Reid reported that legal counsel also claimed that the IRS Revenue Ruling doesn’t to have to come up to a vote of the membership in the annual Board election but can be voted on by the Board.

10. Forward Planning: President Meibeyer recommended that the replacement of the hallway and staircase carpeting in 2025 be delayed, given the recent major expenditures and the possibility of finding some way of repairing the worn areas on the lower steps.

As a preliminary to adjournment, both Meibeyer and Reichel spoke of their appreciation of and love for the Suites. After Reichel’s motion to adjourn and Meibeyer’s second, the meeting adjourned temporarily, to resume with the new Board in order to elect officers for 2024-2025.

11. Officer Positions: After resumption, the new Board, with Munroe chairing as Vice-President, elected the following members to these officer positions:

Geoffrey Bellah, President
Fred Munroe, Vice-President
Nancy Hudson, Secretary
Dwight Walker, Treasurer
Jo Ann Trembath, Member at Large

The Annual Meeting adjourned at 12:56 PM after a short discussion about holding a Board retreat.

BOD Meetings for 2024-2025:

May 4, 2024
August 10.2024
November 2, 2024
January 18, 2025
March 8, 2025

Respectfully,

Geoffrey Bellah, Secretary