DRAFT
San Fransisco Suites
Meeting of the Board of Directors
November 2, 2024
President Geoffrey Bellah called the meeting to order at on Saturday, November 2, 2024, at 11:04 AM. The Board of Directors members present were:
Geoffrey Bellah, President
Fred Munroe, Vice President
Dwight Walker, Treasurer
Nancy Hudson, Secretary
Jo Ann Trembath, Director-at-Large
Others Present: Cynthia Reid, General Manager
Owners Present: Susan Josselyn
Max Josselyn
Owners Forum: One owner mentioned a housekeeping issue in her suite, which was immediately taken care of by Manager Reid.
President’s Report: President Bellah thanked Cynthia Reid and Dwight Walker for their efforts in preparing the 2025 budget and commended Cynthia Reid for establishing and directing the successful rental program. He also noted the positive reviews on the Airbnb rollout which have resulted in the Suites achieving “Super Host” status, as well as its beneficial impact on the budget.
Approval of Minutes: Munroe made a motion to approve the minutes of the August 10, 2024, Board of Directors Meeting. It was seconded by Jo Ann Trembath and approved unanimously.
Treasurers Report: Walker offered the following:
Total Operating Cash available at the end of September was $269k.
$1200 from the reserve portion of recently received assessments needs to be transferred from the Operating Account to the Reserve Account. Munroe moved to approve the transfer, Trembath seconded the motion, and the motion passed unanimously.
Our Accounts Receivable at $68k remains unprecedented. At the end of September that revenue deficit is offset by the following:
$27k from sale of foreclosed shares
$14k from Airbnb revenue
5k from Operating account interest
However, there are additional expenses of $8k for property taxes and ownership resolution fees.
We are still short of covering cash needs for 2024. Rental income and more sales of shares during the next 3 months may make up what is about a $34k shortfall at the end of September. Also, Reserves investments of $645k have yielded $22k in earnings
General Manager’s Report: Cynthia Reid offered the following:
There are now 32 shares in the Association inventory. Nine shares have been adopted with their assessments paid, but there are still 23 shares owing $39,721 in assessments. 24 shares have been sold this year (16 Masters and eight Parlors). There are 11 shares in foreclosure which will go to tax auction in January. Currently there are 11 deed backs with paid assessments in progress, and three other deed backs for which the assessment is owed.
Cynthia Reid also developed a Deed Back Procedure Form to share with owners who request a deed back.
Two new Housemen have been hired, Pedro Munoz and Wilfredo Quippe.
Our IT guru Ken VonBerg has upgraded the WIFI system. Our handyman Israel Garcia has retiled the floor in the laundry room. Finally, Modern Drapery has replaced 18 drapery linings.
The Employee of the Quarter is Susan Smith. President Bellah praised Smith for her positive, helpful attitude and her dedication to making sure all guests – owners, renters, exchange guests – feel welcome at the Suites, and later awarded her a monetary gift from the Association.
Ongoing Business:
The Board reviewed the 2025 draft budget report prepared by Walker and Reid, which proposes an assessment of $1769 per share. Walker moved to accept the budget, which breaks down as follows:
$1579 per share to Operations
$ 190 per share to Reserves
Munroe seconded the motion, and after some discussion, the motion passed, 4 in favor and 1 opposed. This approved assessment represents a $42 increase over the previous year.
The Board considered the 2025 Reserve Study, which inventories the Suites’ material assets, and evaluates which elements might need repair or replacement over time, and the costs to do so. Walker moved to accept the Study, Bellah seconded that motion, and after some discussion, the motion passed 4 to 1.
Manager Reid reported on the Airbnb rental program. In October 2024 fifty-four nights were booked, and income for the month was $8643. The total revenue from Airbnb rentals, from June 2024 when it commenced to the end of October amounts to $22,533.
New Business:
Manager Reid reviewed with the Board the repair and replacement listing from the Reserve Study for 2025. She proposed from the listing the following items:
Antiques repair and restoration
Gazebo furniture
5-year certification inspection
Annual certification
New mattress sets
Exterior painting of stairs, rails, and fire escape
Tune-up program testing
Bellah moved to accept the proposed items for 2025, Munroe seconded the motion, and it passed unanimously. Regarding the new mattresses, the Board requested that Reid investigate the possibility of placing King-sized mattresses in some Master suites.
Manager Reid reiterated the approved 2025 assessment of $1769 and said that the invoicing process will begin immediately. The invoices will be emailed and mailed to all owners.
Reid reported that complimentary amenities, including coffee, the afternoon wine and cheese service, newspaper delivery, and Wi-Fi, cost the Association $18,300 annually, and that the cost of these free amenities is ever increasing. The Board agreed to consider raising the prices of room service and refrigerator items to offset these rising expenses.
Reid brought to the Board’s attention the property tax bills on the Association’s non-performing shares. In the past, the Board has authorized paying the property taxes to prevent the bills from increasing with added penalties and to make them available for sale. The total taxes due for the non-performing current inventory is $1567. Walker moved, and Munroe seconded a motion to pay these tax bills, and the motion passed unanimously.
Forward Planning:
Replacement of hallway and staircase carpeting will be addressed in 2025.
As the agenda’s business was completed, Walker made a motion to adjourn. Munroe seconded the motion, which was approved unanimously. The meeting was adjourned at 1:21 PM.
Respectfully submitted,
Nancy R. Hudson, Secretary
Saturday, January 18,2025 is the next BOD meeting