San Francisco Suites
Board of Directors’ Open Meeting
July 29, 2023

1. President Meibeyer called the meeting to order at 11:11 am

2. Board Directors present:
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
Pamela Murphy, Interior Designer

3. Owners Forum: An owner asked the Board to consider installing shampoo, conditioner, and body wash dispensers in the suites.

4. President’s Report: President Meibeyer summarized the current fire insurance crisis in California in which many carriers are pulling out of the state, and not creating new or not renewing policies. San Francisco Suites has been directly affected by this crisis in that Farmers Insurance, which has covered the Suites for over 35 years, has notified us that they will not renew our coverage effective September 1, 2023, – even though we have a sterling record of no major claims and significant improvements in fire prevention/alarm equipment – because our building is over 100 years old. The Suites is now faced with trying to secure insurance coverage, and the prospect, if a carrier is found, of a 50% to 150% increase in the premium. The Board is consulting with various brokers and agencies to find adequate, reasonably priced coverage. (California’s Fair Plan is a possibility but ensures only for fire and tends to be expensive) Once quotes are available, the Board will need to act quickly, as insurance coverage is mandated by the CC & Rs.

5. Approval of Minutes: The corrected minutes of March 11, 2023, were approved unanimously after Geoffrey’s motion was seconded by Dwight.

6. Treasurer’s Report: Dwight stated that the Association’s “cash position is strong.” We have enough cash in the Operations Account to sustain us through the year, which is a positive change from previous years when incoming assessment revenue temporarily covered expenses in the last months. Dwight also suggested that we might consider transferring money from our low-interest Axos account to a higher-interest Money Market account, which could also have the advantage of being more accessible for withdrawals.

7. General Manager’s Report: Manager Reid delivered a beautiful and moving paean to the City of San Francisco, reminding everyone that the city has survived past crises and come through them stronger and better.

1. Financials – As of June 30, 2023, our Operations Account has $646K, and our two Reserve Accounts have $754K.
2. Association-owned Shares – The current inventory is 20 shares: 12 Parlor shares have been adopted for the coming year, and there is a Master share up for auction. There will be 7 Parlor shares available for adoption in September. The Board approved a trial listing of an Association-owned share with Red Week to determine if the site could be a valuable resource for marketing and selling shares by the Association and owners.
3. 2023 Assessment – 14 shares are in foreclosure with VOTA for nonpayment of the assessment.
4. Insurance – As mentioned by President Meibeyer in his Report, Farmers will not renew our insurance coverage, and the Board is seeking a new policy with various brokers and agencies.
5. Maintenance Projects – An updated digital fire alarm system that has been mandated by the SF Fire Department will be installed in January 2024. Many of the items identified by the Reserve Study for replacement or restoration have been assessed, including most notably a new hot water tank, new skylights and outdoor flood lights, refurbished Board Room chairs, new Roman blinds, and new grab bars and new stools in the bathrooms. The building’s exterior trim has been repainted. Upcoming are new coffee makers, new carpeting for suites, and new wallpaper in the lobbies.
6. Houseman Jeffery Bascara is the Employee of the Quarter. Chuck praised Jeffery for his diligence and dedication, especially unusual for a new employee, and presented him with a cash award.

8. Old Business:

A. Interior Designer Pamela Murphy presented the Board with various carpet samples as possibilities for replacing the current in-suite carpeting. One important feature of the samples is their resistance to wine stains, a frequent problem at the Suites. The Board asked Murphy to solicit various price bids for the sample she recommended and which the Board preferred. Murphy also showed samples of wallpaper for the upper and lower lobbies; after some discussion and disagreement about the samples, Fred moved that both of Murphy’s samples be accepted, one pattern in the upper lobby, and a combination of patterns in the lower, subject to the artistic ability of the installer to hang both patterns and approval of total cost. Geoffrey seconded. The motion passed unanimously.

B. President Meibeyer reported that the Board has approved a competitive bid for a new digital fire alarm system, an upgrade that has been mandated by the city of San Francisco and will be installed in January 2024.

C. The Tax Collector for the City of San Francisco held an auction for shares delinquent in paying property taxes; the Association purchased a SFS Master share with a large tax bill for only $100 and has placed that share up for auction.

D. Grab bars have been installed in the baths, and shower stools have been purchased for those needing them.

9. New Business:

A. President Meibeyer described a situation in which the Association might pay the back taxes on 14 foreclosed shares to return the shares to our inventory so they might be sold.

Chuck asked the Board for a motion of approval. Fred moved that only Parlor shares be included, Geoffrey seconded the motion. The motion was held, pending more information about cost-effectiveness, but soon after passed unanimously.

B. The Board of Directors’ Summer Auction of one Parlor share and one Master share elicited no bids.

C. The next Adopt-a-Share opportunity will be in September.

D. Manager Reid presented the Board with the 2023-2024 Reserve Study. Reid showed that several of the items required for replacement or refurbishment had been completed; others were appropriately and sensibly deferred.

10. Forward Planning: Two major projects, lobby wallpaper replacement and in-suite carpet replacement, are tentatively scheduled to be completed in January 2024, when the Suites will be closed to guests.

Adjournment: The open meeting ended at 3:02 pm

Respectfully submitted,
Geoffrey Bellah, Secretary

San Francisco Suites
Board of Directors Meeting
Annual Meeting
Organizational Meeting for New Board
Minutes of Open Meeting (draft)
March 11, 2023

Jan Founte, with Inspectors of Election, called the annual election meeting to order at 11:09 AM (via Zoom link) and announced that a quorum of ballots had been achieved, with 346 ballots returned to be opened and counted.

President Meibeyer then assumed the chair for the Board Meeting. Election processing was taking place via Zoom, without audio, as a general meeting convened.

I. Call to Order

President Meibeyer called the annual meeting to order at 11:13 a.m. The meeting was held in person, with a Zoom link available for any owners wishing to attend remotely.

II. Roll Call

Board Members present:
Chuck Meibeyer, President
Jo Ann Trembath, Vice-President
Fred Munroe, Secretary
Jeff Reichel, Member at Large
(Dwight Walker, the Treasurer, was excused)

Others present:
Cynthia Reid, General Manager
Susan & Max Josselyn, owners
Pamela Murphy (interior designer)

Owners present via Zoom:
Tim Lundell
Geoffrey Bellah
Nancy Hudson
Don Thomas
Shelly Davis-King

III. Owners Forum:

Susan Jocelyn commented that the plants on the roof look beautiful. Susan was also concerned about the overall condition of the carpeting on the stairs. She expressed her interest in having instructions available related to the operation of closed captioning on televisions.

Geoffrey Bellah commended General Manager, staff, and the board for maintaining a very high standard of service, which seems to be waning in other establishments, as we still face challenges from COVID.

IV. President’s Report:

1. With the end of the California state of emergency related to COVID, the Suites still have policies in place for procedures relating to guests advising the front desk, upon arrival their vaccination status; signing a Hold Harmless form related to COVID, and presenting a negative COVID test, before attending any event in the board room.
   1. After discussion, upon a motion by Fred, seconded by Jo Ann to suspend the requirement for vaccination, and to suspend the Board Room test requirement, was recommended to be suspended and then be reviewed again in 6 months. The motion carried unanimously.
   2. On a motion by Fred and seconded by Jeff the same action was taken with regard to the Hold Harmless agreement, which carried unanimously.

V. Approval of Minutes:

The minutes from the January 21, 2023 board meeting, with one minor correction, were moved for approval on a motion by Jeff, seconded by Jo Ann. With no further discussion, the motion carried unanimously, with the minutes approved as corrected.

VI. Treasurer’s Report:

1. The Treasurer provided our now standard single page Dashboard. The report summary narrative for this quarter is being provided as a written summary in the treasurer’s absence, his one-page summary, dated March 6, is being included here and reviewed verbally by the president.
2. We have reinvested a little more than $600k of our $856K reserves in US Treasury Bills, as a means of improving our return on these reserve funds.
3. Because of the significant, timely payment of 2023 assessments, our operating cash position at the end of 2022 was $615k.
4. At the end of 2022, two owners are in arrears on their assessments by more than 90 days.

VII. General Manager’s Report:

1. Completing projects during the COVID pandemic has been an ongoing challenge. So many service providers have very limited staff and resources. This was a serious challenge. Our own staff has continued to provide outstanding service to our owners, guests, and board. Cynthia has expressed her great admiration for our staff and those outside providers who have stepped in, including their efforts with our most recent infrastructure challenges.
2. Our most recent infrastructure challenge entailed the emergency replacement of the hot water boiler in January for $25,000
3. Outstanding assessments owed $102,000 with 39 owners who are now delinquent
4. The 2022 delinquent assessment foreclosure auction was held by VOTA on Feb 14. One Master was sold to a new owner. The one Parlor did not sell and is now owned by the Suites.
5. All the Roman Shades have been installed to the pleasure of all owners.
6. We are finding that many chairs are breaking. Pamela is arranging to repair these as needed.
7. Interviews for a new houseman and a front desk staff are proceeding this month.
8. The employee of the Quarter is Andrew Gee. He is our overnight front desk staffer. Due to his work hours, he was not present to receive his award and honorarium. His service to the suites and our owners has been flawless.

VIII. Old Business:

1. The boardroom chairs now all have new cushions to make them far more serviceable. This was completed without any need to replace any chairs. These cushions are in place today.
2. The Spring Share Auction includes 4 parlors and 1 master and will be held on March 15.

(A break in the board agenda was taken at 12:18 pm, to facilitate the announcement of the election results from the Inspector of Elections.)

Election results: The Inspector of Elections announced the results of the Board election and the question-related handling of revenue surplus. Geoffrey Bellah was elected to the one open board seat. The motion to transfer all revenue surplus to the Reserve Account was approved by a majority of voting members.

After this brief break, the board meeting reconvened at 12:34 pm

IX. New Business:

1. Pamela Murphy presented samples for lobby wallpaper and replacement carpet in the Suites.
2. Cynthia met with Steve Barton to evaluate the removal and replacement of wallpaper.
3. Our fire alarm system needs to be replaced, as mandated by SF Fire Department. Based upon the logistical needs of this work and other likely projects, it is suggested that we close the suites for the month of January to complete this and other timely projects. On a motion by Fred, seconded by Jo Ann, and carried unanimously, a subcommittee was appointed (Chuck, Dwight, and Jo Ann) to work with Cynthia, the City Fire Department, and our chosen service providers to address, the planning and scheduling of the Fire Alarm Project, along with all necessary work to be completed in January 2024.
4. Jo Ann will continue to work with Chuck, Cynthia and Pamela Murphy on the wallpaper and carpet projects.
5. The April “Adopt a Share” announcement will be published this month.
6. The possible need for grab bars, shower seats, and a lobby ramp was discussed. Further discussion will continue regarding the lobby ramp, but at this time, on a motion by Jeff, seconded by Jo Ann and unanimously approved; additional bath grab bars shall be installed, and three portable shower seats shall be made available. Guests can have shower seats provided upon request.

X. Next Meeting Date: The meeting of the Board of Directors shall be on July 29, 2023.

XII. Adjournment: On a motion by Jo Ann, seconded by Fred, the meeting adjourned
by unanimous consent at 1:30 p.m., in order to reconvene for the new Board’s brief organizational meeting.

Organizational Meeting of the newly seated board:

The meeting reconvened at 1:32 PM, with President Chuck Meilbeyer presiding.

2023-24 Board Members present:
Geoffrey Bellah
Chuck Meibeyer
Fred Munroe
Jeff Reichel
(Dwight Walker was excused)

On a motion by Fred, seconded by Jeff, it was moved to elect Chuck Meilbeyer to return as President. The motion carried unanimously.

On a motion by Fred, seconded by Chuck, it was moved to elect Geoffrey Bellah, as secretary. The motion carried unanimously.

On a motion by Fred, seconded by Jeff, it was moved to elect Dwight Walker to return as treasurer. The motion carried unanimously.

On a motion by Geoffrey, seconded by Jeff, it was moved to elect Fred Munroe, as Vice President. The motion carried unanimously.

X. Next Meeting Dates 2023-2024: Meeting of the Board of Directors

Saturday, July 29, 2023
Saturday, September 16, 2023
Saturday, November 4, 2023
Saturday, January 6, 2024
Saturday, March 9, 2024

Respectfully submitted:

Fred Munroe, Secretary

San Francisco Suites
Board of Directors
Minutes of Open Meeting (draft)
January 21, 2023

I. Call to Order

President Meibeyer called the meeting to order at 11:02 a.m. The meeting was held in person, with a Zoom link available for any owners wishing to attend remotely.

II. Roll Call

Board Members present (in person):
Chuck Meibeyer, President
Jo Ann Trembath, Vice-President
Dwight Walker, Treasurer
Fred Munroe, Secretary

Jeff Reichel, Member at Large was excused

Others present:

Cynthia Reid, General Manager
Lynne Henze, owner

III. Owners Forum:

Owner Lynne Henze was glad to just be able to attend and thanked the board and staff for their service.

IV. President’s Report:

2. President Meibeyer’s reported that, with the assistance of a financial advisor, we were able to move a substantial portion of the association’s reserves into an interest-bearing Treasury Bill program. These funds (approximately $600,000) are now in secure investment programs returning interest at about 4.4 percent, per annum. Dwight clarified that this action was approved by the board at our November meeting.
3. The President summarized the staff’s positive actions related to protecting staff and guests related to COVID. Chuck advised us that due to the receding risk in San Francisco, he will be working with Cynthia between now and our March meeting to develop a more relaxed COVID policy that will be voted on by the Board in March.

V. Approval of Minutes:

The minutes from the November 5, 2022 board meeting, with no corrections, were moved for
approval on a motion by Jo Ann, seconded by Dwight. With no further discussion, the motion carried unanimously, with the minutes approved as submitted.

VI. Treasurer’s Report:

1. The Treasurer provided our now standard single page Dashboard. We are showing approximately $260,000 cash in the operating account, as of November.
2. By the end of November, Cynthia had collected almost $360,000 of the 2023 assessments. This early collection helps us maintain a strong positive cash flow into the New Year. Our decision to retain reserve funds within the operating budget for 2023 will mean that this cash flow challenge late in the operating year should be retired by the end of 2023.
3. We only have two owners in arrears by more than 90 days in 2022. Dwight commended Cynthia for that success.
4. While revenue is down, due to less use of bonus time in 2022, we have also seen expenses down over the past few months. This gives us a positive budget-to-expense outcome of a $24,515 surplus.

VII. General Manager’s Report:

1. As of today’s meeting date, all but 196 owners have paid their 2023 assessments. While there is $305,936 to be paid, over seventy-five percent (75%) of our owners are current for 2023.
2. Cynthia reported that we currently own 14 parlor shares. 12 of those have been adopted. 2 Parlors were deeded back to the Association. Those 2 suites will be auctioned by the Suites this spring. The foreclosure auction will be carried out by the county on February 14, at 1:00 pm. There is one Master and one Parlor in that auction.
3. The next significant improvement to the Suites will be the replacement of the wallpaper in the lobby. General Manager is concerned that some damage to the walls may be found when the old wallpaper is removed.
   The boiler room floor still needs to be repaired. At the moment it is still proving to be difficult to find a contractor for this task.
   The electrical panel also needs to be upgraded to include a clear diagramming of all the circuits. And the rear fire escape and landings need to be repainted. This item is currently noted within the reserve study.
   The coffee makers will all be replaced shortly after the best options have been researched and we have also received input from the housekeeping staff.
   During the latest storm, the Suites faired very well, with only minor damage to some of the windows frames, now needing some paint.
   We do have one suite that has scorch marks from an owner leaving a hot iron flat on the carpet. The Board has determined that the carpets in all of the Suites (other than the “4’s” which were recently replaced in a remodel, need to be replaced. For this reason, Cynthia recommends that we do not schedule carpet cleaning and focus instead on prompt replacement.
4. Cynthia will be conducting interviews for a new houseman this month.
5. The employee of the Quarter is Israel Garcia. Israel is our longtime handyman and his assistance in addressing many recent repairs has been extraordinary. Israel was not present today because he was out of town, but his excellent service was recognized by the Board.
6. The employee of the year is Luis Martinez. His unfaltering service to the Suites, other staff members, and our owners and guests is exemplary.

VIII. Old Business:

1. The annual board election will be held on March 11. The “Inspector of Election” will again handle that entire process. The call for nominations has gone out and at this point, three owners have submitted applications. The nomination process shall close on February 1. Once that process has ended all nomination papers will be forwarded to the Inspector of Elections, which will send out all necessary paperwork to all owners.
2. The boardroom chair repair or replacement project is under review with Pamela, our decorator. This process will look at the prospects of repairing the chairs or replacing them. Supply chain challenges have delayed this process.
3. The Roman Shades have been installed and the Board, and the owners in residence, are very pleased. The installation crew completed the entire project in one day. As mentioned at the last meeting, a window in Suite 32 needs replacement and has been ordered.

IX. New Business:

1. Boiler Replacement: Flow Masters was able to replace the failed boiler for $26,675. They will return annually and handle the certification process. Cynthia was also pleased by the conduct of the staff at the Suites in helping all Owners during the process.
2. Process of selling shares: Chuck presented information related to some incidents where Shares have been offered for sale without a clear title. The process, in the past, has not included a title search. Cynthia recommends a process to require a title search before listing any shares for sale on our website. This process will also require evidence that taxes have been paid and the assessment is current. On a motion by Fred, seconded by Jo Ann, carried unanimously it was approved to require this process for any share listed for sale on the Website or on the bulletin board.
3. Auction: There are 2 Parlor shares, with possibly a Master, to be available for sale by the Suites.
   The auction shall take place on March 1. Board action is required to approve this sale process. On a motion by Dwight, seconded by Fred, the motion carried unanimously.

X. Forward Planning:

1. The Lobby wallpaper replacement is calendared for 2023.
2. The replacement of carpeting for all the suites was discussed earlier in the meeting. It was agreed this has become a top priority.

XI. Next Meeting Date: Meeting of the Board of Directors and annual election shall be on March 11, 2023

XII. Adjournment: On a motion by Jo Ann, seconded by Fred, the meeting adjourned by unanimous consent at 12:35 p.m.

Fred Munroe, Secretary

San Francisco Suites

Board of Directors

Minutes of Open Meeting (draft)

November 5, 2022

1. Call to Order

President Meibeyer called the meeting to order at 11:12 a.m. The meeting was held in person, with a Zoom link available for any owners wishing to attend remotely.

1. Roll Call

Board Members present (in person):

Chuck Meibeyer, President

Jo Ann Trembath, Vice-President

Dwight Walker, Treasurer

Fred Munroe, Secretary

Jeff Reichel, Member at Large

Others present:

Cynthia Reid, General Manager

Susan & Max Josselyn, owners

III. Owners Forum:

Owner Susan Josselyn commented that she is pleased with the improvements to the appearance and condition of the landscaping on the roof patio.

1. Approval of Minutes:

The minutes from the October 2, 2022 board meeting, with no corrections, were moved for
approval on a motion by Jeff, seconded by Jo Ann.  With no further discussion, the motion carried unanimously, with the minutes approved as submitted.

1. President’s Report:

• President Meibeyer’s report will be interspersed in other topics during the meeting.  However, he indicated his admiration for the efforts of our General Manager and all our dedicated staff, as we continue to move forward with the increased utilization of the Suites. He commended our staff and management for their exemplary service, as all are focused on moving forward in our return to a more normal operational environment.

1. Treasurer’s Report:
2. The Treasurer provided a single-page outline of our financial standing, which he refers to as “The Dashboard”.  (This shall be attached to the minutes for reference).  SEE LINK TO VIEW (pdf) Financial Dashboard
3. As of September 30, 2022, the operating account balance was $138,060. Reserve account balances total $892,979.  We do have a $143,000 shortfall, in operating cash, projected as we head toward the end of the year.  This will be discussed further during the budget
   segment of today’s meeting.  Revenue through September is below the projected budget amount by $27,802; mostly due to fewer nights being booked, as “bonus time”.  However, our favorable savings in expenses currently exceed the noted revenue shortfall.
4. It was also noted, with the window shade replacement project going forward under
   replacement reserve projects, our long-term utilization of reserve funds remains very
   conservative. 

VII. General Manager’s Report:

1. As summarized at our last meeting, all 12 Parlors owned by the association have been
   adopted and assessments have been collected.
2. Related to other share issues, there are 3 deed backs, which are all parlors.  One will be adopted and the other two will likely be sold in 2023. Two other shares are in foreclosure, with the auction expected to take place in December.
3. All insurance renewals are on track as scheduled.
4. Maintenance issues: The water heater has now been replaced with the diligent efforts of
   Israel.  A cracked window in suite 32 will be replaced with assistance from the original window installation contractor.  It was also noticed by Israel, that there is a leak needing attention in the boiler room piping, which shall be repaired in the near future.
5. Interviews for a new houseman are currently taking place, to hire a replacement for Walter.
6. The employee of the Quarter is Carlton Wing-Tang.  Carlton was not present today for the award.  The president mentioned and all present agreed, Carlton is a reasonably new member of our staff and has instantly demonstrated his value, charm, and diligent service to the Suites.

VIII. Old Business:

1. 2023 Budget:  Cynthia presented a brief summary of the overall budget, as composed with the concurrence of the treasurer and president.  The 2023 assessment is proposed to be $1,555 per share.  The treasurer reminded the board that the budget being proposed does include a one-time only suspension in 2023 of any revenue being earmarked or transferred
   into reserves in order to provide adequate cash in operations and avoid future cash shortfalls.  On a motion by Fred, seconded by Jeff, it was moved to accept the 2023 budget, as presented.  With no further discussion, the motion carried unanimously.
2. Changes in banking relationships:  Research was done that demonstrated the association would be favorably served by moving the reserves into accounts bearing greater interest
   returns.  The president summarized ways in which we can proceed.  A motion was made by Dwight to close out the Capital One account, reduce the total funds in Axos to $250,000 and move $600,000 into a 12 or 24-month T-bill account.  The motion was seconded by Jo Ann.  With no further discussion, the motion carried unanimously.
3. Window Shade Update:  General Manager reported the installation of the window shades is scheduled for January 17 and 18.  Currently, the shade fabric is receiving the final review from the Fire Department.  The board collectively expressed their pleasure with the overall project and the working relationship with our contractor.
4. New Business:

1. Board Room chairs:  The overall condition of the boardroom chairs has been an ongoing concern.  The general discussion moved in the direction of making an effort to evaluate whether refurbishment or replacement is the best overall path.  On a motion by Jo Ann,
   seconded by Fred, it was agreed that one chair be sent out to be refurbished, in order to then evaluate the best course of action.  The motion carried unanimously.
2. Property Tax Concerns: Cynthia met with a representative at the County Assessor’s office, to address the fact that some new owners have not been receiving their tax bills in a timely
   fashion.  It was indicated to her that it sometimes takes a year, after ownership transfer, for tax bills to get sent to the current owner, but the current owner is still legally responsible for payment, even if they did not receive the bill.  Cynthia informed the board that she sends a reminder related to this, to all owners, about the time they are likely to receive their annual tax bill, from the city, in the fall.

1. Forward Planning:

1. The General Manager advised the board that the Lobby wallpaper replacement is calendared for 2023.  This item is at the top of the list because the project is likely to include repairs needed for some segments of the lobby walls.
2. With further discussion, it was agreed that the carpets in the individual suites is a higher
   priority than previously considered.  This item shall be addressed after the Lobby wallpaper replacement has been scheduled.
3. On a motion by Dwight, seconded by Fred, it was agreed to remove the item related to Board Room remodel from the Forward Planning list, at this time.  This motion carried unanimously.
   

2023. Next Meeting Date: The meeting of the Board of Directors is January 21, 2023.

XII. Adjournment: On a motion by Dwight, seconded by Jeff, the meeting adjourned
by unanimous consent at 12:23 p.m.

Fred Munroe,  Secretary

San Francisco Suites

Board of Directors

Minutes of Open Meeting (draft)

October 2, 2022

I. Call to Order

President Meibeyer called the meeting to order at 11:10 a.m. The meeting was held via zoom, with only Cynthia in the Board Room, with President Meibeyer presiding online via Zoom.

II. Roll Call

Board Members present (via zoom):

Chuck Meibeyer, President

Jo Ann Trembath, Vice-President

Dwight Walker, Treasurer

Fred Munroe, Secretary

Jeff Reichel, Member at Large

Others present:

Cynthia Reid, General Manager

Bill & Eileen Neville, owners

Bob Goff, owners

Sue Josselyn, owners

Todd & Maureen Goolkasian, owners

III. Owners Forum:

There were no comments from the owners.

IV. Approval of Minutes:

The minutes from the June 26, 2022 board meeting, with no corrections, were moved for approval on a motion by Jo Ann, seconded by Dwight. With no further discussion, the motion carried
unanimously, with the minutes approved as submitted.

V. Treasurer’s Report:

1. Dwight provided a report regarding the current financial status of the Suites as of July 31, 2022. He indicated that our cash on hand would cover 105 days of operation, but there are 153 days left in our operating year. This has been an ongoing issue and will be discussed further today, as we look at our budgeting for the coming year.

2. As of July 31, 2022, the operating account balance was $311,445. The Reserve account balance was $899, 771.

3. Dwight brought to the board’s attention the outstanding work done by Aaron and Cynthia to clean up the format of our balance sheet, giving us a clearer monthly picture of our overall
   financial status.

4. The year-to-date budgeted revenue was $634,556, while the actual amount was $611,697. This shortfall was largely due to the decrease in projected bonus time income received.
   However, on the expense side, actual expenses were $588,283. A clear advantage over the year-to-date budgeted amount of $622, 713. Overall, revenue against expenses did show a favorable position of almost $12,000. Through July about $19,000 was spent out of
   replacement reserves for various projects. Chuck commented about our favorable 65% “cash to major replacement” position.

VI. General Manager’s Report:

1. Related to Parlors sold and assessments collected, Cynthia has collected balances
   outstanding of $17,436, leaving an uncollected balance of only $8,120. 12 Parlors were sold and 12 other Parlors were adopted with assessments collected. Cynthia, in consultation with President Meibeyer, will be looking at alternative title/escrow providers to streamline this process.

2. Related to shares in a transitional status: There is one Master in escrow, which was sold for $4000. There is also one Parlor considered a Deed Back, which will be sold. Cynthia thanked Chuck specifically for finding a way to bond for possible liens against this share, in order to clear up the issues impeding its sale. It will be sold, once all the needed paperwork has been finalized.

3. As of the last meeting we had 7 shares in foreclosure. As of this meeting we only have 2.
   Cynthia indicated that once again with Chuck’s assistance, we were able to get these owners to clear the status of their shares and/or deed them back to the Suites.

4. As of today, Cynthia stated she has collected the assessments on 812 shares.

5. Some insurance coverage renewals have recently been completed. The ISU premium has remained the same. There was a small increase in the Farmer’s Insurance policy. The worker’s comp insurance has decreased by at least $2,400. Cynthia was pleased to tell us that we have had zero workers’ comp claims, over the past three years. This is a remarkable occurrence in the hotel industry. The medical coverage does not renew until January. Dwight asked about whether or not we should consider earthquake insurance. It was explained that, after
   reviewing this option many years ago, it was agreed the cost-benefit was unfavorable for the organization.

6. Occupancy continues to be on the rise. Owners are pleased with our staff retention and the overall continuity as we strive to move toward a normal operating environment.

7. Employees of the Quarter are Eric Ingersoll, Tony Verastegui, and Luis Martinez. Only Tony was present for today’s presentation. It is very unusual to have this honor presented to three
   employees, for the same quarter. Cynthia shared with all present the outstanding service
   provided by all three of these employees during a very challenging period this summer at the Suites.

VII. President’s Report:

1. President Meibeyer provided a status review of the window shade project. The current quote of $50, 600 would include both the preferred “braided cord” and the addition of necessary fire retardant treatment on the fabric. Pamela, our decorator, brought to our attention that the valances on all windows need some remedial action. Her overall quote does include those repairs. Dwight expressed some concerns related to child safety, with braided cords. Chuck indicated that both cord types are considered child safe. A general discussion looked at many aspects of the two options. A motion was made by Fred to select the shades with the braided cord and approve the overall project with a slight increase in cost. The motion was seconded by Jo Ann. During a brief discussion, Chuck noted we need to instruct the installers to address the safest height for the placement of cord hooks. With no further discussion, the motion carried unanimously. Chuck indicated the plan is to carry out this project in January.

VIII. Old Business:

1. The status of Parlor sales and the September Adopt a Parlor program were covered in the General
   Managers report above.

2. Status and action related to the replacement of window shades were covered in President’s Report above.

IX. New Business:

1. Reserve Study: Per direction from the board, after looking at the prior year’s reserve studies,
   Cynthia conducted a tour of the property, along with our contractor, electrician, heating/boiler contractor, and our elevator services provider. After their tour of the property, these service providers concluded that many of the scheduled 2022 and 2023 replacement items did not actually need to occur because those components of the Suites were in good condition. Cynthia’s itemized report was included in written format, having been delivered in writing to President Meibeyer and Treasure Walker. A full copy of this Reserve Study will be on file. Cynthia also noted that the written summary showed the incorrect annual cost for the fire panel certification. The corrected amount is $250.
   On the forward planning schedule for 2023, currently included items are the replacement of lobby wallpaper, the window shade replacements approved earlier, and the carpet replacement.

2. 2023 Allocation to Replacement Reserve Fund (CM). Chuck summarized the Suites’ financial history in which the funds on hand run out approximately late October or early November each year so the Suites have to use funds from the following year’s Assessments that are received early to cover remaining costs through the end of the year. The President, General Manager, and Treasurer are recommended the Association correct this anomaly by foregoing the allocation of funds out of 2023
   Assessment of the Replacement Reserve Fund (based on the current healthy level of Reserves and ability to safely delay certain projects). This would be a one-time action to better align the revenue and expense balance moving forward. A motion to allocate all 2023 revenue to the operating fund, for one year only, was made by Dwight and seconded by Fred. On further discussion, the motion was amended to include the stipulation that any excess funds, which remain in the operating fund at the end of 2023, will prompt our further evaluation as to whether or not these funds are then shifted to reserves or remain in the operating account. With no further discussion, the motion carried unanimously

3. Draft 2023 Budget: At the direction of the President and Treasurer, the General Manager provided two draft budgets for consideration. One is a 7% increase of $102 per share. The second draft budget is a 9% increase of $131 per share. This is a preliminary item with the item set to come back to the board at the November meeting for final action. It was moved by Dwight and seconded by Jo Ann to increase the 2023 assessment by 7% due to increased costs resulting from substantial inflation and supply chain issues that have raised costs for the Suites. With no further discussion, the motion carried unanimously.

4. Consideration of Board Room Rental Rates: Cynthia is requesting the rental cost for board room event usage, including setup and clean-up, be increased to a flat $100. On a motion from Jo Ann and seconded by Jeff, it was moved to institute this increase. With further discussion, it was suggested this action not be taken until the chairs in the board room are
   replaced. This suggestion was not supported by the motion maker or the second. With no further discussion, the motion carried unanimously.

5. Possible Change in Banking Relationship: Cynthia and Dwight indicated that our Axos CD account is scheduled (by the bank) to automatically roll over in mid-October. There is concern that because this would lock this account at a rather low-interest rate, the association needs to stop the automatic action. The desire is to evaluate our current banking relationships, over the next few months. This does require board action. Dwight moved to do so, and Jo Ann seconded. With no further discussion, the motion carried unanimously.

X. Next Meeting Date: meeting of the Board of Directors is November 5, 2022.

XI. Adjournment: On a motion by Fred, seconded by Jo Ann, the meeting adjourned

by unanimous consent at 12:49 p.m.

Fred Munroe, Secretary

San Francisco Suites
Minutes of Open Meeting (draft) June 26, 2022

1. Call to Order

President Meibeyer called the meeting to order at 11:01 a.m. The meeting was held in the Board Room, with Chuck participating online via Zoom.

2. Roll Call

Board Members present:

Chuck Meibeyer, President (via zoom) Jo Ann Trembath, Vice-President Dwight Walker, Treasurer

Fred Munroe, Secretary

Jeff Reichel, Member at Large

Others present:

Cynthia Reid, General Manager Max & Sue Josselyn, owners Maureen & Paul Larson, owners Sharon Munroe, owner

Pamela Murphy (interior designer) Kenneth von Berg, (IT support)

The President took a moment before proceeding to welcome new board members Dwight Walker and Fred Munroe to the board and expressed his pleasure of us all proceeding together.

3. Owners Forum:

Sue Josselyn expressed her pleasure with the new gate, the renewal of the roof deck, and the fact that we are currently displaying a Ukrainian flag. She also had some concerns about the bathroom paper goods and our prospects of an ongoing relationship with the operator of the parking garage.

5. President’s Report:

   1. Chuck noted that Dwight brought to his attention, the standing requirement for an appointed committee to conduct regular financial reviews. Our legal counsel confirmed this could be a standing subcommittee of the board. On a motion by Dwight, seconded by Jo Ann, it was moved that this standing committee would, at this time consist of the President and the Treasurer. The motion was approved unanimously.
   2. Compensatory time for the owners due to the pandemic expires on August 31, 2022. It was clarified this expiration date was previously set by the board and no further action is needed. Chuck com- mended Cynthia and all staff, along with the previous board, for their overall handling of ways to “balance” the challenges of many owners holding unused nights during the past two years due to Covid.

   3. At the time of the original development of the Suites, many shares were purchased with loans secured by their share. Those promissory notes were then resold to outside financial institutions. What we are now seeing is many owners being unable to sell their shares due to a lack of clear title ownership and/or liens for which there is no record of payment. Chuck suggested that the board make all reasonable efforts to help current owners clear these title issues. His intent was to make sure this information is widely known by all current owners, because some owners may feel they are faced with challenges that adversely affect the fluidity of their shares. Fred asked Cynthia how many shares fall under this “cloud”. She indicated that the association currently owns three shares that have unclear liens preventing them from being sold. Chuck said we are likely to see this happening more often in the near future. The board is pleased with the efforts that Cynthia has already made in this regard and concurs with the president regarding continued efforts to clear this issue.

   4. Chuck expressed his concern with the ongoing surge in Covid. He urged all to remain diligent in how we continue managing the use of public areas of the Suites, along with the Board Room. Cynthia in- indicated the need to add language to our website, in order to make our rules related to unvaccinated guests more widely understood. This is especially important in relation to guests, who are not owners. These are generally either guests of owners or exchange guests. Cynthia will look at the best way to impart this information.
   5. Cynthia requested the board provide stricter guidelines regarding how the board room is used by the owner for events. And she expressed her concern related to these events during Covid. Chuck suggested, that rather than some formal policy, he is willing to review this on a case-by-case basis with Cynthia. The board concurred.

6. Approval of Minutes:

The minutes from the March 12, 2022 board meeting, on a motion to approve by Jeff, seconded by Jo Ann, with Dwight and Fred abstaining, the motion carried 3 to 0, with the minutes approved as submit- ted.

6. Treasurer’s Report:

1. Dwight introduced the single-page outline of our financial standing, which he refers to as “The Dashboard”. (Post board meeting it was decided to attach this dashboard to these minutes, and all future minutes, as a record readily available for review.)

2. As of April 30, 2022, the operating account balance was $703,682. The Reserve account balance was $725,091. (Total fluid assets of $1,429,773) There were 6 delinquent annual assessments, totaling $9,589.30.

3. We have not transferred reserve funds to the reserve cash account, as of today. Our bylaws direct us to do this within 10-days of receipt, which has not occurred. This will be addressed later in this meeting, along with questions related to operating cash on hand for the remainder of the year. However, our reserve balance in all areas is very healthy.

4. Long term, Dwight is reviewing what we are incurring in banking fees, related to the regular transfer of funds. He will bring the board some recommendations in the near future to address this concern.

5. Based upon lighter use of bonus time and a few other areas, this year, we currently see, in relation to our budget a reduction in income, with expenses currently being over budget.

5. General Manager’s Report:

   1. Last year 27 shares, owned by the association, were sold. But last year and into this year, during the pandemic, the escrow/transfer process has become very slow and cumbersome. Cynthia, in consultation with Chuck will be looking at alternative title/escrow providers to streamline this process. The association currently owns 17 parlor shares. 12 of those can be offered for sale including those that now have been cleared of outstanding tax liability/liens. All of these shares also owe the current year’s annual assessment. Only 801 of the total of 816 shares have paid their assessment. There are 6 parlors currently in foreclosure. It is likely some of those 6 will settle their delinquency before they are subject to sale in December.

   2. 2022 Annual Assessments still outstanding – $17,436.
   3. Cynthia reminded the board that we spend $18,000 annually on Complimentary Amenities for our owners that are generally provided at a fee at hotels and other lodging facilities.
   4. The employee of the Quarter, Andrew Flack was commended for his outstanding service to our owners and guests.

6. Old Business:

   1. Pamela Murphy, our interior designer, presented samples of the most likely material for the re- placements to our current plastic roll-up window shared, which is operated by a chain on the side. She reviewed the three estimates Cynthia received to replace all window shades. Rather than the plastic roll-up shades, the recommendation is to install fabric Roman shades. The Roman shades have a longer life span and can be cleaned on-site.

After reviewing the three estimates, Pamela found that she can deal directly with the same fabricator associated with the best outside bid. The project, including installation, is currently is estimated at $46,813. For clarification, this overall project does not include kitchen shade. The kitchen shades were replaced about 5 years ago, with years of useful life remaining.

Jeff expressed some concerns related to the safety of the attached cords used for adjusting the shades. Pamela indicated she would seek further information to address this. Jo Ann asked about the view of the shades blackout panel from the outside. Pamela indicated that the panel is sandwiched between the inside facing and outside facing fabric and would not be seen at all. A motion was made by Fred to proceed with Pamela’s recommendation, with a preference for installing “continuous cord shades” if this can be done for an amount not to exceed $50,000. Seconded by Dwight.

With no further discussion, the motion was carried unanimously. The selection of actual fabric was deferred to a subcommittee of Jo Ann, Chuck, and Cynthia, to work with Pamela on the resolution of that issue and the question best operating cord.

2. Cynthia brought the board up to date on the question of refinishing the kitchen counters (between the kitchen and living rooms). The question of reconditioning the wood, at a cost of about $24,000 total, versus stripping down the wood and providing a long-term painted finish, at a cost of about $31,000, was reviewed. Chuck suggested that the cost of this minor improvement was excessive in relation to other areas of needed improvement, such as the overall condition of the carpeting. It was moved by Jo Ann and seconded by Dwight that the question of refinishing the kitchen counters be tabled at this time. After further discussion regarding our overall forward planning list, beyond this single issue, the motion was carried unanimously. Chuck asked Cynthia to review the overall revised sequencing of all projects on the forward planning list, with the goal of addressing this as part of the budget review at the next board meeting. This would likely also include adding the question of carpeting to the list. No further action on these items was needed today.

3. Cynthia presented a review of information from the 2020 reserve study, indicating the need for a significant repair to the Boiler Room floor being necessary. This is a safety issue. A motion was made by Fred and seconded by Jeff to make these repairs for a projected cost of $4350. With no further discussion, the motion was carried unanimously.

5. New Business:

   1. The President reminded the board that the Reserve Contribution of $180,784.80 needs to be moved from Wells Fargo Bank to the Capital One Reserve account. On a motion by Jeff, seconded by Jo Ann, to do so, this was then opened for discussion. It was agreed that Cynthia, the President, and the Treasurer shall evaluate whether there is a more advantageous destination point for this reserve contribution. The motion carried unanimously.

2. Cynthia asked for approval of a Summer Parlor Sale, with the same costs and guidelines as the summer sale from 2021. The president reviewed why these sales need to include a provision requiring escrow and title insurance. He reminded the board of our earlier discussion about the historical title, lien, and liability issues with some shares being offered for sale. On a motion by Dwight, seconded by Jo Ann, the motion to authorize the sale carried unanimously.

3. The President spoke about how historically, an owner’s liability for damages, when they or their guest caused damage has not been as clearly communicated as we would like. These guidelines have, on occasion, preventing the association from recovering the true cost of damages. This does not require direct board action. However, it was agreed that the reservation confirmation, sent out at the time of booking, needs to be more clear regarding liability for damage during a stay.

4. Increase in Valet Parking fee: To more clearly recover actual costs, it has been recommended the Valet Parking fee be increased from $52 to $55. On a motion by Fred, seconded by Dwight, a motion was made to do so. Motion carried unanimously.

5. Chuck introduced the General Manager’s recommendation to increase Bonus Time rates to $160 for Parlors and $180 for Master Suites. He reviewed the need to adjust this cost to remain more realistic with the actual market value, in relation to other lodgings in the city and the owner’s current assessment rate for the 7 inclusive nights per share. A motion by Jeff, seconded by Fred, was made to institute these new bonus night charges. Further discussion brought up by Dwight, looked at considering an in- crease for all bonus nights to a flat $200. The original motion, not amended, carried on a 4 to 1 vote.

6. Items 6 and 7, under New Business, related to cyber security and the status of our website, were tabled to a later date.

IX. Next Meeting Date: meeting of the Board of Directors is September 24, 2022.

X. Adjournment: On a motion by Dwight, seconded by Jo Ann, the meeting adjourned by unanimous consent at 1:50 p.m.

Fred Munroe, Secretary

To view, the Financials Click here to view in PDF format.