Annual Meeting March 9, 2024

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

 

 

Board of Directors’ Open Meeting Jan. 6th 2024

San Francisco Suites
Board of Directors Open Meeting
January 6, 2024

 

DRAFT

San Francisco Suites Board of Directors Open Meeting

January 6, 2024

1. President Chuck Meibeyer called the Zoom meeting to order at 11:05 AM. The Board Directors present via Zoom 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

2. Owners’ Forum: No owners were in attendance.

3. President’s Report: President Meibeyer announced that with the completion of this term in March 2024 he will be leaving the Board, after nine years of service, five as President. He thanked General Manager Cynthia Reid for her support and advice and complimented the other Board Directors for their seriousness of purpose, for their diligence, and for the various skills and experience they brought to the Board’s work. He mentioned that he will shortly be sending out a President’s Letter to the membership announcing his retirement and urging members to run for the upcoming two positions on the Board. He also listed what qualities he felt best serve Directors who serve on the Suites’ Board: expertise, knowledge of the Suites, energy, and passion, and an avoidance of promoting a single personal issue.

4. Approval of Minutes: Vice-President Munroe moved, and Treasurer Walker seconded the approval of Minutes from the November 4, 2023, meeting. The motion passed unanimously.

5. Treasurer’s Report: Treasurer Walker reported that the Association’s cash position is currently good with 2024’s assessments now being collected. The budgeted reserve contribution portion of the assessment of $122,000 will be transferred into the Fidelity account for the Reserve Fund by March 2024. The low-interest Axos account will be closed, and its balance of $36,768 will be transferred to Wells Fargo to pay reserve expenditures. A discussion was held about putting incoming assessment revenue into the higher interest-producing Fidelity account, moving funds from Fidelity into Wells Fargo as needed, and reinvesting in Treasury notes by March 2024.

Secretary Bellah moved and Walker seconded that the Board form a subcommittee consisting of the President and Treasurer to move funds between accounts in the most advantageous manner, and to purchase or lock in interest rates on Treasury notes, all before March 2024. The motion passed unanimously.

Although 2023 revenues are slightly up, operation expenses are as well, mostly due to the insurance premium increase and staff overtime. Walker projects a $42,000 operating deficit by December 2024.

At this point, there will remain approximately $28,000 in uncommitted reserves for 2024, so Walker strongly recommends that reserve expenditures beyond existing commitments be used only for emergencies.

6. General Manager’s Report: Manager Reid reported that the Association currently owns 17 Shares, and that of those, 16 have been adopted. We currently have one deeded back Parlor share for sale on RedWeek. Unfortunately, although there were healthy sales of both Master and Parlor shares in 2023, there has been a large increase in the number of deed backs, mostly due to the aging population of our original owners who find themselves unable to use their share time. These deed backs, which to be accepted by the Association must be clear of liens with their property taxes fully paid, are then adopted or sold by the Association. Even so, the increasing number of deed backs puts a financial strain on the Association because of the potential immediate loss of assessment revenue. Interestingly, many owners hoping to deed back their shares, change their minds when they are informed of the possibility of depositing those shares with one of our Exchange services, thereby giving them the opportunity to travel to other locations, domestic and international. As for the owners who wish to list their shares for sale at the front desk or on the website, those shares must have their assessments and taxes paid. Reid however maintains that she has had much interest and subsequent success in adopting and/or subsequently selling shares, and foresees that success continuing into the coming year.

Reid is happy to report that we have received more of the 2024 annual assessments at this time than at the same time last year, a sign that the owners have confidence in the Suites in spite of the continuing problems in the city and the significant assessment increase. Owners realize the uniqueness of the Suites and the value it represents when compared to other accommodations in the city, especially on Nob Hill. That appreciation showed itself in the high occupancy rates in 2023, especially in December, which was fully booked.

The Employees of the Quarter are Erick Tedeev at the Front Desk and Gloria Soto, Head Housekeeper. And the Employee of the Year 2023 is the Suites’ handyman, Israel Garcia.

Reid ended her report by praising the hard work of the front desk and housekeeping staff who helped move furniture during the installation of new wallpaper in the lobbies and carpeting in individual suites.

Old Business: A. At the January 9th VOTA delinquent assessment foreclosure auction, there will be 8 Master and 5 Parlor shares offered. B. Three major projects are being completed at the Suites this January: new wallpaper for the lobbies, new carpeting in all suites (except the “4” parlors which were re-carpeted when they were remodeled several years ago), and the city-mandated digital fire alarm system. There is a need for more rolls of wallpaper at an added expense of $1700. Munroe moved to approve the additional costs, Walker seconded, and the Board unanimously approved the motion. All projects should be completed in time for the re-opening of the Suites to guests on February 1. C. Reid reported on the ongoing Parlor sale by which an Association-owned Parlor share can be purchased and transferred to a new owner for $100, and the upfront payment of the annual assessment. So far four Parlor shares and one Master share have been sold in this manner. D. One Parlor share is to be posted on RedWeek for $1000, plus the annual assessment and Reid will report in March as to its status.

New Business:
A. The company The Inspector of Elections, who has well served us in the past, will conduct our March 2024 Board election. Meibeyer urged that the election announcement sent to the membership be very clear and explicit about the date and time that all candidate applications be received.

B. There was a general discussion about how to sell or market shares owned by the Association that are not revenue-producing. One idea was to approach several of the private clubs in the neighborhood that lack overnight accommodations (e.g., The Family Club, The Bohemian Club) to see if they might be interested in purchasing shares for their members’ use. Another suggestion was to place a sign-out front indicating the availability of “Suites for Sale.” Reid brought up the possibility of offering potential new owners a complimentary one or two-night stay at the Suites, without inconveniencing or displacing owners.

C. Bonus Time revenue is down, and the Board discussed strategies for increasing the use of Bonus Time and the revenue Bonus Time produces. By raising Bonus Time rates? By offering different rates for weekdays and weekends? By changing the reservation lead time? All agreed that the front desk should remind owners when they are confirming a reservation, the number of nights still available to them. Munroe moved that the rates remain the same, but that the lead time be extended from one week to two – as a one-year trial. Bellah seconded, and the motion passed with one dissension from Walker. D. Finally, the Board discussed the suggestion from some owners that soap/shampoo/conditioner dispensers be installed in the baths. Since there was general approval (with few reservations) for this proposal, Reid promised to bring to the Board at the March 2024 meeting a sample of the kind of dispenser she would prefer and a cost analysis.

Forward Planning: The carpeting in the hallways and staircase is showing wear, and probably will need replacement soon, for aesthetic and safety reasons. Given the limited reserve funds available for this type of project in 2024, the Board recommended that its consideration be moved to 2025.

Adjournment: Walker moved and Munroe seconded that the open meeting adjourn. With unanimous passage of the motion, the meeting adjourned at 1:17 PM.

Respectfully Submitted by
Geoffrey Bellah
Secretary

SFS Open Meeting Nov. 4, 2023

San Francisco Suites
Board of Directors Open Meeting
November 4, 2023

 

1. President Chuck Meibeyer called the meeting to order at 11:04 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

2. Owners Forum: No owners were in present in person or via Zoom.

3. President’s Report: President Meibeyer wanted the membership to know that the Board did everything it could to limit the increase in the 2024 assessment, given the necessity to secure business and property insurance after Farmers’ non-renewal of our policy. The new coverage translates to $123 per share, with only $49 going to operations, meaning a $172 assessment increase per share for 2024.

4. Approval of Minutes: Vice-President Munroe moved, and Treasurer Walker seconded the motion to approve the Minutes from the September 16, 2023, open meeting. The motion was approved unanimously.

5. Treasurer’s Report: Walker explained that after the higher insurance premium is paid later this month, there will be a need to draw from the incoming revenue from 2024 assessments to finish the calendar year’s operations. Also, although the Reserve fund is currently healthy, a number of high-priced commitments for January 2024 (new lobby wallpaper, new suites carpeting, new digital fire alarm system) will draw down that balance. Walker also recommended closing down the Axios account in Reserves and place the money in an interest-generating account. There are 22 Shares whose assessments were not collected in 2023, meaning approximately $23,000 in lost revenue for the Association. Even so, revenues are good, based on Bonus Time and Share sales. Walker suggested that the Association restrain as best it can any spending from Reserves for 2024 beyond what’s already been planned.

6. General Manager’s Report: Reid first summarized recent discussions regarding the street closures’ impact on the Suites and surrounding neighborhood due to the upcoming APEC meeting. Our Powell Street entrance will be closed, but the Pine Street entrance open, thus limiting access for guests and staff. (With most major streets on Nob Hill closed, Pine Street will become a major artery for traffic.) These restrictions will make it very difficult for staff and guests, in getting to, parking nearby, or leaving the Suites. Reid is suggesting that those guests with reservations during APEC to reconsider their stay, and the Front Desk is contacting them to let them know of the challenges they may be facing.

Regarding the Association’s inventory of unsold Shares, there are currently 15 Shares to be adopted. However, Reid has successfully collected all of 2023’s assessments, through owner payments or adoption. She has recently sold three Parlor Shares and one Master Share. Also, four Parlor Shareowners have recently deeded back their Shares to the Association, and those Shares will be sold by the Suites for $100 plus the 2024 annual assessment of $1727.

A VOTA auction of thirteen foreclosed Shares (eight Masters and five Parlors) that have been delinquent in paying their assessments will be held on January 9, 2024, at City Hall. Reid will send notices announcing the auction with the minimum bids, including fees and possible taxes owed, to all members sometime in December.

The Employee of the Quarter is Cinthia Meilo, whose hard work on behalf of the Suites was praised by President Meibeyer who then presented her with a cash award on behalf of the Association.

7. Old or Unfinished Business: President Meibeyer presented the draft proposal for the 2024 budget, which includes a $172 increase per Share over 2023. He attributed this increase to the higher cost of property and business insurance ($123 per share) and a modest $49 increase in operations. There will also be a $122,000 contribution to the Reserve Fund, which needs financial support, especially after the January 2024 expenditures of new lobby wallpaper, new carpeting for individual suites, and a city-mandated digital alarm system. Walker moved that the Board accept the budget proposal, Munroe seconded, and the motion for the 2024 budget passed unanimously.

Reid explained the costs, timing, and dates for the aforementioned January projects, during which time the Suites will be closed to guests.

Reid reviewed the 2024 Draft Reserve Study and pointed out two items suggested for replacement, hallway and stairway carpeting and mattresses, which the Board took under advisement. Walker moved that the Board accept the draft of the 2024 Reserve Study, Bellah seconded, and the motion passed unanimously.

Reid announced the year-round 2024 Parlor sale, which offers the transfer of a Parlor Share for $100 plus the $1727 annual assessment. The two Shares posted for sale on Redweek generated some interest, but Redweek’s intransigent policies regarding early use and assessment payment prevented the completion of any sales. The four deed-backed Shares whose assessments have been paid may be good candidates for Redweek.

Meibeyer recommended that the Suites continue the policy of paying taxes due from some foreclosed Parlor Shares prior to their VOTA auction to keep the penalties from becoming higher and thus hindering their future sale. The Master Shares will probably sell at the auction in spite of the taxes owed.

8. New Business:

Meibeyer reminded the Board that approximately $600K in Treasury notes is about to reach maturity. So, he and Walker are recommending that we reinvest the money in a staggered manner, taking advantage of currently higher interest rates, with some notes maturing at 1 year or less, some at 2 years, and some at 3 years, a plan that would lock in the higher rates and provide flexibility, in allowing us to withdraw from the Reserves when we need to, in case of an emergency, but without the egregious penalties of early withdrawal from longer-term notes. Meibeyer suggested that the Board form a subcommittee to study and oversee this proposal and return to the subject in January 2024.

9. Meibeyer adjourned the open meeting at 12:21 PM with the Board’s full approval.

Respectfully submitted,
Geoffrey Bellah, Secretary
San Francisco Suites

BOD Open Meeting Sept. 16th 2023

Draft

San Francisco Suites

Board of Directors Open Meeting

September 16, 2023

1. President Chuck Meibeyer called the meeting to order at 11:02 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

3. Owners Forum: No owners were in attendance.

4. President’s Report:

President Meibeyer announced that the Suites was able to secure insurance to replace the non-renewal by Farmers of our property policy, effective August 31, 2023, from Gallagher Risk Management Services, but at an egregious increase from $39K annually to $140k annually. We did mitigate the increase somewhat by raising deductibles and by reducing the earlier erroneous estimate of the building’s footage. Meibeyer recommended that the Board seek competitive bids for insurance next year well before the renewal date and expressed hope that the insurance crisis in California will have abated by then so that our annual premium could be lowered.

5. Approval of Minutes: Treasurer Walker moved, and Vice-President Munroe seconded the motion that the minutes from the July 29, 2023, open meeting be approved. The motion passed unanimously.

6. Treasurer’s Report:

Walker stated that of July 2023 there was $548K in the Operations account and $758K in Reserves, noting that the Operations number does not include the insurance premium of $140K that must be paid in full and immediately. Also, with 13 shares delinquent in paying their assessments, there is currently a shortfall of $23K in anticipated revenue. Otherwise, our projected revenues are good. On the other hand, expenses are well within the budgeted range for the year, with the exception of $18K in overtime costs, a budget anomaly which will be remedied by recent hiring and more flexible scheduling. With several projects soon to commence – a mandated digital fire alarm system, new carpeting, new lobby wallpaper – the Reserve account will drop somewhat by the end of 2023 and again in 2024, and the Board will decide in its 2024 budget how much to replenish it.

7. General Manager’s Report:

Manager Reid reported that currently, the Association owns 19 Parlor shares and 1 Master share. In that inventory, 12 Parlors have already been adopted, and 3 more were adopted in the recent September Adopt-a-Share. However, that leaves 4 Parlor shares and 1 Master share not providing revenue of $7,715 to account for their lost assessments. At this time VOTA has foreclosed on 8 Master shares and 5 Parlor shares, an unprecedented number, due to delinquent assessments, which will come up for auction this year. Even so, during the past few months, 4 Master shares have been sold by owners. Also, the Board authorized in July putting the Suites’ owned Master share and one Parlor share on the timeshare resales site RedWeek, and there seems to be some purchasing interest being generated there. Given the high number of nonrevenue-producing shares in foreclosure and in the Suites’ own inventory, Reid asked the Board to give her the flexibility and discretion to offer shares for sale at the lowest reasonable price, a request which the Board took under advisement. Gloria Soto has been selected as “Employee of the Quarter.” After being introduced to the Board and complimented for her dedication to the Suites, Gloria accepted a cash gift from the Association.

8. Old Business:

A. President Meibeyer reminded the Board that it had already approved the Lobby wallpaper project, during the September Emergency Session with a budget of $64K, so no action was required at this meeting.

B. Funding for installing new carpeting in 13 suites was discussed while the Board considered two bids, one including the moving of furniture, the other not. Munroe moved that the Board accept the lower bid from Eddie’s Carpets, which does not include moving costs, Walker seconded, and the motion passed unanimously.

C. Manager Reid updated the Board on the installation, at a cost of $55K, of the new digital fire alarm system over two days in January 2024 when the Suites will be closed to guests.

D. The Board of Directors’ Summer Auction for 4 Parlor shares and 1 Master share elicited no bids.

E. The summer Adopt-a-Share, however, resulted in three Parlor adoptions.

F. The 2024 Reserve Study Report is not complete but will be available for the Board’s review and approval at the November meeting.

G. Reid mentioned that some owners would prefer a smaller, more user-friendly coffee maker. The Board will consider replacing the current on-demand coffee makers if a similar, perhaps smaller, but less complicated maker can be found.

New Business:

A. The Board looked over four different possible budgets for 2024, two offered by Manager Reid and two by Treasurer Walker, with each varying the amount put in Reserves and the increase for Operations. And each slightly varying the 2024 annual assessment, from $1727 to $1797, or an increase between $172 and $242 per share. (This amount incorporates the $123 per share to pay for the costs of new insurance.) Munroe moved, and Bellah seconded the motion, that Walker and Reid work together to come up with a draft for a recommended 2024 budget, based on the third option, and with a targeted annual assessment of $1727, for approval at the November meeting. The motion passed unanimously.

B. Manager Reid reported that two Association-owned shares, a Parlor and a Master, will be placed with the timeshare resales site RedWeek for sale, as an experiment.

C. Manager Reid asked the Board to approve a Fall 2023 Parlor sale of Association-owned shares. If successful, the sales will help replenish the anticipated shortfall in assessment revenue. Bellah moved that such a sale be held, Munroe seconded the motion, and the motion passed unanimously.

Forward Planning: The Suites will be closed to guests for the entire month of January 2024 in order to commence and complete several major projects, new carpets in the suites, new wallpaper in the lobbies, and a new digital fire alarm system.

The open meeting adjourned with unanimous consent at 12:34 p.m.

Respectively submitted,

Geoffrey Bellah, Secretary

BOD open meeting july 29, 2023

 

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

BOD meeting 3-15-23

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