San Francisco Suites
Open Meeting of the Board of Directors
May 3, 2025
The meeting was called to order by President Geoffrey Bellah at 11:08 am. The Board Members present were:
Geoffrey Bellah (President) via Zoom
Fred Munroe (Vice President) via Zoom
Dwight Walker (Treasurer) via Zoom
Nancy Hudson (Secretary)
Jo Ann Trembath (Director at Large) via Zoom
Others Present: Cynthia Reid (General Manager)
Owners Present: Susan Josselyn
Don Thomas
Owners Forum: An owner suggested that the San Francisco take note of the information available from the Union Square Alliance, related to the Powell Street Rejuvenation Project.
President’s Report: Adjustments needed to be made to the agenda due to unforeseen circumstances. Under Ongoing Business, the President moved that item three (an action item) be tabled until the August meeting and that discussion on the topic be limited.
Jo Ann Trembath seconded the motion which passed unanimously. Also, the President moved that the General Manager’s Report be moved until after New Business. Jo Ann Trembath seconded the motion which passed unanimously.
Approval of the Minutes of March 8,2025 Board Meeting: Dwight Walker moved to approve the minutes of the March 8, 2025 Board Meeting. Fred Munroe seconded the motion which passed unanimously.
Treasurer’s Report:
- With the completion of the external audit all 12/31/24 audit adjustments have been recorded and are reflected in the March, 2025 reports. There were not substantial audit adjustments. Kudos to Cynthia for a timely audit with minimal adjustments!
- In 2024 the Suites were subject to income taxes because of the income earned on investment accounts. Interest is taxable as non-member revenue. Federal income tax was recorded at $9,759 or 20% of interest income. California taxable income was reduced by tax exempt interest and resulted in minimal state income tax of $1,314.
- Operating cash on hand at the end of March was $943k which translates to 241 days of cash on hand short of the 275 days needed to 12/31/25. That shortfall of $106k is due to the assessments not collected, or nonperforming shares, with 26 delinquent accounts and 34 shares held by the Association.
- The rental program initiated in 2024 along with Cynthia’s diligent efforts to collect and/or sell/adopt nonperforming shares is working. The nonperforming shares translate into 420 nights available for Airbnb rental. Rental income is $2,879 over budget through March and sales of foreclosed units is likewise $3,481 over budget.
- There are some expense line items (over budget) largely due to one-time events that are not expected to continue throughout the year, as follows:
- Safety Supplies and Equipment (4,943)—Cynthia explained that there some inspections and equipment that were actually reserve items and will be reimbursed in April.
- Utilities (2,171)
- Plumbing (2,281)
- Credit Card and Bank Fees (3,318)—Cynthia explained that there has been increased use of credit cards by owners to pay their assessment. Those fees are offset by the fee charged to owners.
- Electrical & Mechanical (2,787)—Cynthia noted some one-time repairs that were necessary.
- The bad debts line item expense is currently showing a positive variance to budget of $17,750 because uncollectible accounts have not been written off yet.
- The bottom line reflects a positive variance to budget for operations of $20,843.With continued revenue generation along with expense management, 2025 should end in line with budget expectations.
Ongoing Business: The Mattress Task Force (Dwight Walker and Jo Ann Trembath) presented of their report as a slide presentation (attached). The Task Force was assisted by Pamela Murphy. Recommendations are:
- The room sizes in 1s, 2s and 5s are well-suited to California King beds,
- Bedrooms are “over-furnitured” and by moving one piece out of the bedroom into the living room both rooms are enhanced.
- Standardized bedding for all of the Masters with California Kings would simplify staff needs.
- Owners will appreciate the upgrade to California Kings in the Masters. Parlors would get new Queen mattresses.
- No modifications to bedside lamps and tables and no impact to radiators.
- Sofa bed replacements are needed.
Discussion of the recommendations followed, largely related to the size of the bed (California vs Eastern King) and the movement of furniture. Action on this issue will be taken at the August Board Meeting.
Cynthia Reid estimated the cost for the bed frame, box spring, mattress and linens for nine king beds at about $23,000. This includes mattress removal. There will be an additional cost for new bed skirts.
Jo Ann Trembath and Geoffrey Bellah will meet with Pamela Murphy regarding replacing the sofa beds. The replacement of these will occur in early 2026.
New Business:
- Guidelines for Board Meetings and Minutes were discussed. It was determined that the president will consult with the Suites lawyers regarding the language for the Executive Session agenda. The guidelines for Board Meeting Minutes did not require further discussion.
- Occasionally, owners check out late without informing the front desk or asking for accommodation. Geoffrey Bellah will consult with Cynthia Reid and draft a policy which allows the Suites to charge for late checkouts. The proposed policy will be considered at the August Board of Directors Meeting.
- Dwight Walker moved that we accept the audited financial report by Levy and Company and commend Cynthis Reid for her work in making that a clean report. Nancy Hudson seconded the motion which passed unanimously.
General Manager’s Report:
- Six Master Suites have been sold and the sale of two more Master Suites and one Parlor Suite are pending.
- Total revenue through April is $20,769 from sales and $23,464 fron Airbnb.
- The Suites will be closed from May 4th through 7th for annual carpet and upholstery cleaning
- There are new coffee pots in each Suite.
- Nine owners are paying their assessment in installments. Two deed backs owe $3538. Nine shares are in foreclosure. This is significantly improved since last year.
Forward Planning:
These items will be continued onto the August agenda.
At 12:36 Fred Munroe moved that the meeting be adjourned. Nancy Hudson seconded the motion which passed unanimously.
Respectfully Submitted,
Nancy R. Hudson