(DRAFT)

San Francisco Suites

Annual Meeting of the Board of Directors

March 7, 2026

The meeting was called to order by President Geoffrey Bellah at 11:05 am. The Board Directors present were:

Geoffrey Bellah, President

Fred Munroe, Vice President

Dwight Walker, Treasurer

Nancy Hudson, Secretary

Jo Ann Trembath, Director at Large

Others Present: Cynthia Reid, General Manager

Don Thomas, Owner

Sue Jocelyn, Owner

President Bellah called the meeting to order at 10:59 am.

Owners Forum: Don Thomas, a member of the Union Square Alliance, said that he would share weekly updates about neighborhood improvements. He noted that the Annual Tulip Day where 80,000 tulips will be displayed in Union Square Park will occur on March 21^st.

President’s Report: President Bellah noted that the only nomination for the one vacant seat on the Board was Geoffrey Bellah. Since there were no other nominees, there was no need to have conduct balloting, and Mr. Bellah was, by acclamation, reappointed as a Board member. He then presented a scenario of how he might welcome himself if he was a new member of the Board and encouraged other owners to step forward and contribute to the association

Approval of the Minutes of January 24, 2026 Board Meeting: Dwight Walker moved and Fred Munroe seconded the motion to approve the minutes of the Open Meeting of the Board of Directors on January 24, 2026. The motion passed unanimously.

Treasurer’s Report: Dwight Walker noted that this report covers the 12 months’ ending

December 31, 2025, as well as a separate summary for the month of January 2026.

The report includes income, expenses and net income (loss) for each period, along with key

highlights and observations.

Financial Summary: 12 Months Ended December 31, 2025 (Preliminary until audit completed in April)

Summary of Income and Expenses (2025)

Category Amount (USD)

Income $1,499,563

Expenses $1,505,915

Net Income (Loss) ($ 6,652)

Key sources of income included owner assessments of $1,288,464 and Airbnb rental

income of $98,947, while major expenses were related to payroll costs of $980,803

operating costs of $303,029, insurance of $144,151and bad debts of $73,563. Cynthia Reid

is to be commended for offsetting the uncollectible owner assessments through Airbnb

rental income and sales of shares. At the end of the year there were 49 Ownership Shares

held by SF Suites.

Replacement Reserve cash balance as of the end of 2025 was $824,836 which represents

roughly 43% of the Reserve Study’s “Fully Funded” balance of $1,718,750. During 2025 just

under $75,000 was spent out of the reserve with the largest projects related to mattress

and wall bed replacements.

Financial Summary: January 2026

Summary of Income and Expenses (January 2026)

Category Amount (USD)

Income $129,660

Expenses $125,090

Net Income (Loss) $ 4,570

In January 2026, the Suites continued its positive financial trend, with net income slightly

exceeding budget thanks to Cynthia Reid’s diligence in spending withing budget and

through Airbnb rental income almost $4,000 over budget. The challenge for 2026 remains

the same as 2025 with 160 ownership assessments not collected as of the end of January.

That translates into over $284,000 in cash not collected to fund 2026 operations. It takes

extra effort to follow up on uncollected assessments, and it jeopardizes owners who do pay

their assessments of the possibility of a special assessment to fund operations for the year.

Cynthia Reid devotes an inordinate amount of time in collections, sales of shares and

managing Airbnb rentals in order to avoid a special assessment. We thank Cynthia for her

efforts in offsetting uncollected assessments!

At the end of January, $894,480 was available in Replacement Reserve cash representing

roughly 46% of the “Fully Funded” balance.

General Manager’s Report: Cynthia Reid reported:

Financials

• Wells Fargo $315,108.17

• Fidelity Reserve $909,324.95

• Fidelity Ops $561,013.17

SFS Inventory (59)

• 59 non-performing shares owe $104,784.00

• 3 deed backs in progress (assessments paid)

• Sold 4 masters = $14,000(assessment included)

• Adopted 1 parlor

Total Revenue for January-February $33,757.85

• Sale of shares $14,000

• Jan- February Airbnb $19,757.85

• Total =$33,757.85

2026 assessments (710 assessments have been paid)

• 47 owners have not paid the assessment = $87,024

• SFS 59 non- performing shares owe = $104,784

• Shares are now delinquent and will have a 10% late fee ($177.69) added in March

• Delinquent assessment = $1,953.69

• Delinquent shares will be placed in foreclosure in June

• Adopt a parlor notice will soon be sent out

SF City Parking increases

• Self-Park was $38 and will be increased to $41.00 in April

Projects

• 9 Cal King mattresses have been installed in all Master Suites

• 13 new sofa beds are in process

Maintenance

• Annual carpet and upholstery cleaning was completed in the week of February 23

• LED light bulbs and dimmers repaired in all Suites

• New painted, wooden thresholds replaced in all Suites

Ongoing Business: Cynthia Reid:

• Updated the Board on the costs related to the mattresses and linens. The mattresses cost $27,253.53 and the linens cost $20,235.28 for a total of $48,488.81

• Noted that the fabric for the sofa beds was being treated with flame retardant

• Indicated that various options for the lobby ramp are being studied

• Action Item – Fred Munroe moved and Jo Ann Trembath seconded the motion to accept the proposed changes to the Rules and Regulations allowing owners and share adopters to book up to seven nights bonus time in a Parlor Suite for $160 per night. The motion passed by a margin of four to one.

New Business: Dwight Walker moved and Fred Munroe seconded the motion to approve IRS Revenue Ruling 70-606, allowing the Association to move excess funds into the following year’s operating account to avoid IRS taxation. The motion passed unanimously.

Forward Planning:

Cynthia requested, and the Board agreed, that the hallway and staircase carpeting replacement be moved to 2027. In the future only one major project be undertaken each year.

Jo Ann Trembath moved that the meeting be adjourned and Fred Munroe seconded the motion which passed unanimously. The meeting adjourned at 11:54 am.

Respectfully Submitted,

Nancy R. Hudson

The Board reconvened after the meeting to select Directors for the coming year. They are as follows:

Geoffrey Bellah, President

Nancy Hudson, Vice President

Dwight Walker, Treasurer,

Jo Ann Trembath, Secretary

Fred Munroe, Director at Large

Dates for future meetings are:

May 30, 2026

September 19, 2026

November 7, 2026

January 16, 2027

March 6, 2027

The next meeting of the Board of Directors of the San Francisco Suites is scheduled for

May 30, 2026.

San Francisco Suites

Open Meeting of the Board of Directors

November 1, 2025

The meeting was called to order by President Geoffrey Bellah at 11:08 am. The Board Directors present were:

Geoffrey Bellah (President)

Fred Munroe (Vice President)

Dwight Walker (Treasurer)

Nancy Hudson (Secretary)

Jo Ann Trembath (Director at Large)

Others Present: Cynthia Reid (General Manager)

Owners’ Present: Christine Shipman

Joseph Sweeney via Zoom

Kathy Lange via Zoom

Dana Livingstone Lopez via Zoom

Ana Schmidt via Zoom

Susan Josselyn via Zoom

Owners Forum: No owners had comments to share with the Board at this time.

President’s Report: President Bellah noted that, at the August Board Meeting, the Board of Directors was divided on the matter of new mattresses for the Master Suites. After a vigorous discussion, the vote was three in favor of purchasing California King Mattresses and two against. President Bellah named the individuals who voted for and against the motion (these individuals were not named in the meeting minutes). He expressed his concern that the Board of Directors did not reach a consensus on this matter, which made him uncomfortable.

Dwight Walker and Jo Ann Trembath disagreed with President Bellah’s analysis.

Approval of the Minutes of the August 9, 2025 Board Meeting: Jo Ann Trembath moved to approve the minutes of the August 8, 2025 Board Meeting. Fred Munroe seconded the motion. After a brief discussion, the motion passed unanimously.

Treasurer’s Report: Dwight Walker presented the following report with supportive documentation attached.

• First and foremost, Cynthia and her team should be recognized for their successful year in offsetting the $77,000 in annual assessments that could not be collected. This has been achieved through Airbnb rental income of $69,000 through September and sales of shares or adoptions totaling $35,000. These efforts should provide great comfort to owners, as without them, a special assessment would have been required to fund operations. Thank you, Cynthia, for your leadership and perseverance in these efforts!

• Operating cash was $298,000 at the end of September, equivalent to 76 days of cash on hand, short of the 92 days until the end of the year. Additional cash was used in September because 12 months of insurance premiums totaling $133,000 had to be paid, which benefits 8 months in 2026. The Suites are the strongest cash position in many years.

• Replacement Reserve cash/investments total $791,000, earning interest at approximately 4% and invested in federal securities.

• Action item: Prepaid insurance was not relieved for the September expense, so the Profit and Loss Statement net income is overstated by approximately $11,000.

• Year-to-date revenue is over budget by $54,000 for the items mentioned above for sales of shares and rental income. In addition, Bonus Time Income and Interest Income are over budget by $8,000.

• Year-to-date expenses are under budget by $5,000, but this figure is somewhat misleading due to an understatement of insurance expenses of $11,000 and a positive variance in bad debts of $21,000, both of which will diminish before the end of the year. Nevertheless, major expense budget variances are reasonable.

• Action item: Credit card and bank fees of $13,000 are $5,000 over budget and require review with the bank. Cynthia has indicated that this is on her to-do list.

• Payroll expenses are over budget by $4,000 due to increased participation in the employee medical insurance plan.

• Overall, revenue exceeds expenses through September by $59,000, but after adjusting for the insurance and bad debts mentioned above, the surplus is closer to $27,000. If this surplus continues through the end of the year, the board will need to decide whether to build working capital in operations to pay for annual insurance premiums or transfer excess funds to the Replacement Reserves.

General Manager’s Report: Cynthia Reid s reported the following:

• Financials – As of November 1st, the Wells Fargo account balance was $233,184. The Fidelity Reserve account balance was $792,820, and the Fidelity Operations Account had a balance of $734 for a total of $1,026,738.

• Kaiser – The Medical renewal for 2026 is $126,000, a 14% increase over the current year. This is due to an increase in the number of staff insured and to the Kaiser rate increase.

• Vota Delinquent Assessment Foreclosure Auction – Three Master Suites and five Parlor Suites will be auctioned off in January 2026

• The San Francisco Suites Inventory is 46 units.

  • 30 non-performing shares owe $53,070

  • 17 deed backs are in progress with assessments paid

  • 8 shares in foreclosure owe $17,106

  • 5 owners on the installment plan owe $3,056

  • 23 Master Suites were sold for $75,500

  • 12 Parlor Suites were sold for $21,450

  • 12 Parlor Suites and 4 Master Suites were adopted

• Total Revenue from January through October was $200,254, including $96,950 from the sale of shares and $103,304 from Airbnb

• Mattresses – 2 California King beds were installed in the Master Suites, and another will be installed on November 4th. The remaining 6 will be installed on February 28th

• Maintenance

  • Electrical outlets were replaced in the Board Room and in the Lobby by Jason Lloyd

  • Heater vents, door sweeps and wall repairs are being done by Israel Garcia

  • Water heater repair was completed by Flowmaster

• Employee of the Quarter is Israel Garcia, Maintenance Contractor

Ms. Reid also presented graphs on the year-to-date occupancy rates.

Ongoing Business:

• The 2026 Draft Budget was presented by Cynthia Reid and Dwight Walker. The Draft Budget proposed an assessment of $1776 per share, an increase of $7.00 per share. Jo Ann Trembath moved to accept the proposed budget. Nancy Hudson seconded the motion. After a brief discussion, the motion passed unanimously.

• Changes to the Rules and Regulations regarding a fee for late checkout and for the process for relinquishing a share in the San Francisco Suites have been posted for the required 30 days. No owners objected to the proposed changes. Dwight Walker moved that the changes be accepted as posted. Nancy Hudson seconded the motion. After a brief discussion, the Board voted to pass the motion. The vote was unanimous.

• Mattress and Linen Report was presented by Cynthia Reid. She noted that 3 California King Mattresses would be installed in Suites 31M, 32M, and 35M by November 4, 2025, at a cost of $12,153.76. Six additional mattresses will be installed on February 28, 2026, at a cost of $18,230.40 (total cost $30,384.40). The estimate for additional linens is $15.000.

• The current estimate is to replace the 13 sofa beds. Roxanne Robinson, the designer, submitted an estimate of $49,424. for the sofa beds. Fred Munroe moved to accept this proposal. Jo Ann Trembath seconded the motion. After a brief discussion, the Board voted to accept the motion, provided the purchase price does not exceed the estimate. The vote was unanimous.

 New Business:

• Cynthia Reid reviewed the results of the completed No-Site-Visit Reserve study. 2026 repair costs are $106,487. ($136,435 in costs have been removed.) Fred Munroe moved that the study be accepted, and Dwight Walker seconded the motion. After a brief discussion, the motion passed unanimously. Next year a walk-through Reserve Study will be completed.

• The discussion on furniture placement will be taken up at a future meeting.

Jo Ann Trembath moved that the meeting be adjourned. Nancy Hudson seconded the motion. The board voted unanimously to adjourn the meeting at 12:21 pm.

Respectfully submitted,

Nancy R. Hudson, Secretary

The next meeting of the Board of Directors of the San Francisco Suites is scheduled for January 24, 2026.

 

 

San Francisco Suites

Open Meeting of the Board of Directors

May 3, 2025

The meeting was called to order by President Geoffrey Bellah at 11:08 am. The Board Members present were:

Geoffrey Bellah (President) via Zoom

Fred Munroe (Vice President) via Zoom

Dwight Walker (Treasurer) via Zoom

Nancy Hudson (Secretary)

Jo Ann Trembath (Director at Large) via Zoom

Others Present: Cynthia Reid (General Manager)

Owners Present: Susan Josselyn

Don Thomas

Owners Forum: An owner suggested that the San Francisco take note of the information available from the Union Square Alliance, related to the Powell Street Rejuvenation Project.

President’s Report: Adjustments needed to be made to the agenda due to unforeseen circumstances. Under Ongoing Business, the President moved that item three (an action item) be tabled until the August meeting and that discussion on the topic be limited.

Jo Ann Trembath seconded the motion which passed unanimously. Also, the President moved that the General Manager’s Report be moved until after New Business. Jo Ann Trembath seconded the motion which passed unanimously.

Approval of the Minutes of March 8,2025 Board Meeting: Dwight Walker moved to approve the minutes of the March 8, 2025 Board Meeting. Fred Munroe seconded the motion which passed unanimously.

Treasurer’s Report:

• With the completion of the external audit all 12/31/24 audit adjustments have been recorded and are reflected in the March, 2025 reports. There were not substantial audit adjustments. Kudos to Cynthia for a timely audit with minimal adjustments!
• In 2024 the Suites were subject to income taxes because of the income earned on investment accounts. Interest is taxable as non-member revenue. Federal income tax was recorded at $9,759 or 20% of interest income. California taxable income was reduced by tax exempt interest and resulted in minimal state income tax of $1,314.
• Operating cash on hand at the end of March was $943k which translates to 241 days of cash on hand short of the 275 days needed to 12/31/25. That shortfall of $106k is due to the assessments not collected, or nonperforming shares, with 26 delinquent accounts and 34 shares held by the Association.
• The rental program initiated in 2024 along with Cynthia’s diligent efforts to collect and/or sell/adopt nonperforming shares is working. The nonperforming shares translate into 420 nights available for Airbnb rental. Rental income is $2,879 over budget through March and sales of foreclosed units is likewise $3,481 over budget.
• There are some expense line items (over budget) largely due to one-time events that are not expected to continue throughout the year, as follows:
  • Safety Supplies and Equipment (4,943)—Cynthia explained that there some inspections and equipment that were actually reserve items and will be reimbursed in April.
  • Utilities (2,171)
  • Plumbing (2,281)
  • Credit Card and Bank Fees (3,318)—Cynthia explained that there has been increased use of credit cards by owners to pay their assessment. Those fees are offset by the fee charged to owners.
  • Electrical & Mechanical (2,787)—Cynthia noted some one-time repairs that were necessary.
• The bad debts line item expense is currently showing a positive variance to budget of $17,750 because uncollectible accounts have not been written off yet.
• The bottom line reflects a positive variance to budget for operations of $20,843.With continued revenue generation along with expense management, 2025 should end in line with budget expectations.

Ongoing Business: The Mattress Task Force (Dwight Walker and Jo Ann Trembath) presented of their report as a slide presentation (attached). The Task Force was assisted by Pamela Murphy. Recommendations are:

• The room sizes in 1s, 2s and 5s are well-suited to California King beds,
• Bedrooms are “over-furnitured” and by moving one piece out of the bedroom into the living room both rooms are enhanced.
• Standardized bedding for all of the Masters with California Kings would simplify staff needs.
• Owners will appreciate the upgrade to California Kings in the Masters. Parlors would get new Queen mattresses.
• No modifications to bedside lamps and tables and no impact to radiators.
• Sofa bed replacements are needed.

Discussion of the recommendations followed, largely related to the size of the bed (California vs Eastern King) and the movement of furniture. Action on this issue will be taken at the August Board Meeting.

Cynthia Reid estimated the cost for the bed frame, box spring, mattress and linens for nine king beds at about $23,000. This includes mattress removal. There will be an additional cost for new bed skirts.

Jo Ann Trembath and Geoffrey Bellah will meet with Pamela Murphy regarding replacing the sofa beds. The replacement of these will occur in early 2026.

New Business:

• Guidelines for Board Meetings and Minutes were discussed. It was determined that the president will consult with the Suites lawyers regarding the language for the Executive Session agenda. The guidelines for Board Meeting Minutes did not require further discussion.
• Occasionally, owners check out late without informing the front desk or asking for accommodation. Geoffrey Bellah will consult with Cynthia Reid and draft a policy which allows the Suites to charge for late checkouts. The proposed policy will be considered at the August Board of Directors Meeting.
• Dwight Walker moved that we accept the audited financial report by Levy and Company and commend Cynthis Reid for her work in making that a clean report. Nancy Hudson seconded the motion which passed unanimously.

General Manager’s Report:

• Six Master Suites have been sold and the sale of two more Master Suites and one Parlor Suite are pending.
• Total revenue through April is $20,769 from sales and $23,464 fron Airbnb.
• The Suites will be closed from May 4^th through 7^th for annual carpet and upholstery cleaning
• There are new coffee pots in each Suite.
• Nine owners are paying their assessment in installments. Two deed backs owe $3538. Nine shares are in foreclosure. This is significantly improved since last year.

Forward Planning:

These items will be continued onto the August agenda.

At 12:36 Fred Munroe moved that the meeting be adjourned. Nancy Hudson seconded the motion which passed unanimously.

Respectfully Submitted,

Nancy R. Hudson

San Francisco Suites

Minutes of the Annual Board of Directors Meeting

March 8, 2025

The meeting was called to order by President Geoffrey Bellah at 11:05 am. The Board members present were:

Geoffrey Bellah (President)

Fred Munroe (Vice President)

Dwight Walker (Treasurer)

Nancy Hudson (Secretary)

Jo Ann Trembath (Director at Large)

Others Present: Cynthia Reid (General Manager) 

Owners Present: Susan Josselyn

Max Josselyn 

Owners Forum: One owner noted that the thresholds to individual suite doors were inconsistent (brass vs. wood) and also commented about the fantastic appearance of the roof planters

President’s Report: President Bellah welcomed Dwight Walker and Fred Munroe back to the Board for another three-year term, as they were re-elected without opposition due to no other applicants. He then expressed appreciation to Jo Ann Trembath and Nancy Hudson for their contributions to the Board. He conveyed his optimism about the future of San Francisco Suites, acknowledging the team’s strength and General Manager Cynthia Reid’s skills.

Approval of Minutes of January 18, 2025, Board Meeting: Dwight Walker moved to approve the minutes of the January 18, 2025 Board Meeting and Jo Ann Trembath seconded the motion which passed unanimously.

Treasurer’s Report: 2024 and Current Financial Reports

• 2024 Year-End Financials

  • Year-end operating cash position was good due to advance assessment payments, though $30,000 of 2025 cash was used to cover 2024 expenses, which is not ideal long-term.

  • 39 shares were held by the Association at year-end, representing $69,000 in unpaid assessments. These shares represent 273 nights that will not be used by owners in 2025. This enables shares to be used for rental income.

  • Year-to-date operating revenues were $74,000 over budget due to foreclosed share sales and rental income. Operating expenses were $88,000 over budget primarily due to foreclosures and bad debts, offsetting revenue gains. Supplies and services were $13,000 over budget.

  • Net operating income was $51,000, which was $14,000 under budget. Cynthia Reid’s efforts dealing with deed backs, foreclosures, bad debts and Airbnb mitigated larger issues.

  • Reserve cash position was over $647,000, including $30,000 interest income. 2024 reserve expenditures were $143,000 resulting in a 38% of Fully Funded balance according to the reserve study.

• January 2025 Financial Report:

  • January started decently, mirroring the previous year’s assessment collection patterns. Airbnb program had a strong start in January, significantly better than the previous year.

  • Audit for 2024 is pending completion. This and the January financial report represent preliminary numbers and are subject to change.

  • End of January cash position was $966,000, replacement reserves of $768,000. Revenue and expenditures in January were close to budget, with no expenditures out of the reserve fund.

General Manager’s Report:

• Financials as of February 28, 2025 included $277,784 in the Wells Fargo operating account and $717 600 in Fidelity Ops and $787,184 In the Fidelity Reserve account.

• There are 45 shares in the San Francisco Suites inventory, including 36 non-performing shares, 9 deed backs (6 with assessments paid). 7 adopted shares and 2 Masters sold.

• Airbnb revenues for January and February totaled $11,436.

• Total revenue for January and February from sales, adoptions, and Airbnb was $30,819.

• Maintenance included the annual inspections of the roof and the sprinklers as well as electrical, carpet and heater repairs.

• Assessments have been collected on 741 shares. 75 shares are delinquent. 

Ongoing Business:

• Chronicle newspaper amenity: Data on newspaper requests show around 25 requests per month. The Suites pays $175 per month to purchase five newspapers per day ($1.25 per paper). Weekday papers are free to owners, but they are charged $3.00 for Sunday papers. After discussion, no motion was made to change the newspaper amenity. The amenity remains as is.

• February 2024 Foreclosure Auction Report: No bidders attended the February 2024 foreclosure auction. Six shares were auctioned (3 Masters, 3 Parlors) with no bids forthcoming. $15,498 was written off as bad debt; $1,514 in taxes were paid on these shares. The shares are now back in Association inventory for sale or adoption.

New Business:

• Spring Master Share adoption report: Four Master Shares have been adopted.

• Approval of IRS Revenue Ruling 70-606: Dwight Walker made a motion to approve the adoption of IRS Revenue Ruling 70-606, allowing the Association to move excess funds into the following year’s operating account to avoid IRS taxation. Nancy Hudson seconded the motion which passed unanimously.

• Sofa bed replacement: Cynthia reported receiving consistent owner complaints about uncomfortable and worn sofa beds, which were purchased in 2010. Cynthia suggested prioritizing sofa bed replacement (13 units needed) before mattress replacement. Jo Ann Trembath and Geoffrey Bellah will work with Cynthia and Decorator Pamela Murphy to deal with this matter. A report will be forthcoming at the May Board meeting.

Forward Planning:

• Replace hallway and staircase carpeting in 2025: There is no urgency to deal with the hallway and staircase carpeting, but Cynthia will contact a company to examine possible repair solutions.

• Mattress replacement in 2025: Jo Ann Trembath and Dwight Walker have agreed to explore the matter of changing some of the queen-sized beds to king-sized beds, before the mattresses are replaced. This committee will report back to the Board.

Adjournment: Jo Ann Trembath moved, and Dwight Walker seconded the motion to adjourn the meeting at 11:52. The motion passed unanimously. 

Organizational Meeting of the Board of Directors

Choosing Board Officers for 2025-2026:

• Fred Munroe moved, and Jo Ann Trembath seconded a motion that Geoffrey Bellah continue as President of the Board. The motion passed unanimously.

• Dwight Walker moved, and Geoffrey Bellah seconded a motion that Fred Munroe continue as Vice President of the Board. The motion passed unanimously.

• Dwight Walker moved, and Jo Ann Trembath seconded a motion that Nancy Hudson continue as Secretary of the Board. The motion passed unanimously.

• Nancy Hudson moved and Fred Munroe seconded a motion that Jo Ann Trembath continue on the Board as Member at Large. The motion passed unanimously.

• Fred Munroe moved, and Geoffrey Bellah seconded a motion for Dwighr Walker to continue as Treasurer of the board. The motion passed unanimously.

Establishing meeting dates for 2025-2026: Following a discussion by the Board, there was agreement on the meeting dates for the following year. They are:

• Saturday, May 3

• Saturday, August 9

• Saturday, November 1

• Saturday, January 24,2026

• Saturday, March 7,2026 

Organizational Meeting of the Board of Directors disbanded at 12:20 pm.

Respectfully submitted, 

Nancy R. Hudson

San Francisco Suites
Minutes of the Board of Directors
January 18, 2025

President Geoffrey Bellah called the meeting to order at 11:02 am. The Board Members present were:

Geoffrey Bellah (President)

Jo Ann Trembath (Director at Large)

Fred Munroe (Vice President)

Dwight Walker (Treasurer)

Nancy Hudson (Secretary)

 Others Present: Cynthia Reid (General Manager)

 Owner Present: Vin Berg

 Owners Forum: The owner expressed his love for the Suites and acknowledged the board’s efforts to address revenue loss due to members giving back shares.

 President’s Report: Two board members’ terms are ending: Dwight Walker (Treasurer) and Fred Munroe (Vice President). Both are running for reelection. The President expressed gratitude for their service, highlighting their dedication, intelligence, and hard work.

 Approval of Minutes of November 2, 2024, Board Meeting: Fred Munroe moved

to approve the minutes of the November 2, 2024 Board Meeting, with the acknowledgment of the challenges in preparing them due to a technical issue with the recording. Jo Ann Trembath seconded the motion which passed unanimously.

 Treasurer’s Report:

• $359,000 was collected in November from owners paying 2025 assessments.
• 2024 had a shortfall of $59,000 in uncollected assessments.
• Cynthia Reid’s efforts in selling deeded-back shares and the Airbnb rental program offset the shortfall by $55,000.
• Reserve cash balance at the end of November was $645,000.
• $145,000 was spent from reserves during the year, mostly in January, with limited emergency expenditures thereafter.
• Year-to-date revenue was $68,000 over budget due to the sale of shares and the rental program.
• Expenses were $11,000 over budget, largely due to ownership resolution expenses.
• Payroll expenses were $9,000 under budget through November.
• Interest earnings for 2024 were approximately $34,000.
• Projected interest rate for T-bills and certificates of deposit is 4%, exceeding the budgeted 3.5% for 2025.

 General Manager’s Report:

1. Operations Report:

• 546 shares have paid their assessments to date, with 270 shares remaining to be collected by February.
• The collection of assessments this year was almost double that of the previous year at this time.
• The General Manager attributed the positive trend to a renewed sense of optimism among owners, highlighting positive feedback and increased bookings.
• The Airbnb program has received excellent reviews, with guests praising the property, staff, and location.
• The property is ranked among the top 10% most loved properties in San Francisco on Airbnb.
• May 5th for three days is scheduled for carpets, drapery, and upholstery cleaning.
• The boardroom dishwasher was replaced for $569, paid through the reserve.
• Repairs are needed for a Murphy bed in 43P, an oven in 42, and carpet damage in 43.
• New plants were added to the entrance.
• Soap dispensers in bathrooms have received positive feedback.

2. Delinquent Accounts, Foreclosure Actions, and Disposition of Association-owned shares:

• There are currently 33 San Francisco Suites-owned shares, 22 of which are non-performing.
• 11 shares have been adopted, and 15 deed-backs are in progress (5 masters, 10 parlors).
• 11 shares owe assessments totaling $19,490.
• Four of the shares in deed-back have paid the assessment.
• Masters are being sold for $3,500, including the 2025 assessment.
• The VOTA Delinquent Assessment Foreclosure Auction will offer 7 shares for sale.
• If no one bids at the auction, the shares will be written off for 2024, increasing the 2025 inventory to 55 non-performing shares.

3. Employee of the Year:

• Erik Teedev, Front Desk Supervisor, was named Employee of the Year for 2024. He was recognized for his leadership, assistance during the January 2024 remodel, and implementation of the Airbnb program.
• Gloria Soto, Head Housekeeper, was recognized for becoming a U.S. citizen.

 Ongoing Business:

1. Airbnb Report (CR):

• Airbnb revenue from July to December was $30,000.
• $21,000 is already booked for the current year, with projections of $70,000 or more by year-end.
• Airbnb guests pay 200 dollars per night to stay in parlors, plus fees and hotel taxes.
• Bookings can be made up to 270 days in advance, similar to owner reservations.

2. SFS 2024 Sales and Adoption Report (CR):

• 17 masters were sold at $3,500 each, generating $59,500.
• 9 parlors were sold, generating $16,443 (assessment + $100).
• Total revenue from share sales was $75,943.
• Most sales were from owners bringing in friends.
• A complimentary night stay is offered to prospective buyers referred by owners.

 New Business:

1. Deed Back Procedure Revised:

• The revised procedure allows owners to use their seven days while the deed-back is in process, which can take 6-8 months.
• Advance notice and the annual assessment must be paid by March 31st for the owner to use their seven days during the deed-back process.

Fred Munroe moved to accept the proposed changes. Jo Ann Trembath seconded the motion which passed unanimously. The revised language will be circulated by email.

2. 2025 Kaiser Premium Increase (CR):

• The Kaiser premium increased by 16.56%, resulting in a monthly premium of $8,046.33.
• Nine employees currently have Kaiser benefits.
• Employees currently pay $80 per month towards their benefit.
• The board discussed increasing the employee contribution to $100 per month to help offset the premium increase.

Dwight Walker moved that the employee contribution be increased to $100.00 per month. Fred Munroe seconded the motion which passed unanimously.

3. Call For Nominations Report:
   • One application has been received by an incumbent board member.
   • A second application is expected from an incumbent board member.
   • No other owners have applied.
   • Applications are due by February 1st.

4. VOTA 2024 Delinquent Assessment Auction held on February 2, 2025 (CR):

• Seven shares will be auctioned on February 2, 2025.
• The cost is $15,747.90. If no one bids, the shares will be written off for 2024.
• Outstanding taxes are also owed on these shares.

5. Imperial Valet Parking Increases to $60 (CR):

• Valet parking has increased to $60.
• The Suites pay $55 to the Mark Hopkins garage, and $5 is revenue for the Suites.

6. Breakfast Items and Minibar Increases Report (CR):

• The cost of breakfast items is deemed reasonable.
• Minibar prices, mostly at $1, will likely be increased.

 Forward Planning:

1. Replace hallway and staircase carpeting in 2025 The board will discuss this further and seek an installer in San Francisco.
2. Mattress replacement in 2025

 Adjournment: Dwight Walker moved that the meeting be adjourned at 1:28 pm. Nancy Hudson seconded the motion which passed unanimously.

 Respectfully Submitted,

 Nancy R. Hudson

DRAFT

San Fransisco Suites
Meeting of the Board of Directors
November 2, 2024

President Geoffrey Bellah called the meeting to order at on Saturday, November 2, 2024, at 11:04 AM. The Board of Directors members present were:

Geoffrey Bellah, President

Fred Munroe, Vice President

Dwight Walker, Treasurer

Nancy Hudson, Secretary

Jo Ann Trembath, Director-at-Large

Others Present: Cynthia Reid, General Manager

Owners Present: Susan Josselyn

Max Josselyn

Owners Forum: One owner mentioned a housekeeping issue in her suite, which was immediately taken care of by Manager Reid.

President’s Report: President Bellah thanked Cynthia Reid and Dwight Walker for their efforts in preparing the 2025 budget and commended Cynthia Reid for establishing and directing the successful rental program. He also noted the positive reviews on the Airbnb rollout which have resulted in the Suites achieving “Super Host” status, as well as its beneficial impact on the budget.

Approval of Minutes: Munroe made a motion to approve the minutes of the August 10, 2024, Board of Directors Meeting. It was seconded by Jo Ann Trembath and approved unanimously.

Treasurers Report: Walker offered the following:

Total Operating Cash available at the end of September was $269k.

$1200 from the reserve portion of recently received assessments needs to be transferred from the Operating Account to the Reserve Account. Munroe moved to approve the transfer, Trembath seconded the motion, and the motion passed unanimously.

Our Accounts Receivable at $68k remains unprecedented. At the end of September that revenue deficit is offset by the following:

$27k from sale of foreclosed shares

$14k from Airbnb revenue

5k from Operating account interest

However, there are additional expenses of $8k for property taxes and ownership resolution fees.

We are still short of covering cash needs for 2024. Rental income and more sales of shares during the next 3 months may make up what is about a $34k shortfall at the end of September. Also, Reserves investments of $645k have yielded $22k in earnings

General Manager’s Report: Cynthia Reid offered the following:

There are now 32 shares in the Association inventory. Nine shares have been adopted with their assessments paid, but there are still 23 shares owing $39,721 in assessments. 24 shares have been sold this year (16 Masters and eight Parlors). There are 11 shares in foreclosure which will go to tax auction in January. Currently there are 11 deed backs with paid assessments in progress, and three other deed backs for which the assessment is owed.

Cynthia Reid also developed a Deed Back Procedure Form to share with owners who request a deed back.

Two new Housemen have been hired, Pedro Munoz and Wilfredo Quippe.

Our IT guru Ken VonBerg has upgraded the WIFI system. Our handyman Israel Garcia has retiled the floor in the laundry room. Finally, Modern Drapery has replaced 18 drapery linings.

The Employee of the Quarter is Susan Smith. President Bellah praised Smith for her positive, helpful attitude and her dedication to making sure all guests – owners, renters, exchange guests – feel welcome at the Suites, and later awarded her a monetary gift from the Association.

Ongoing Business:

The Board reviewed the 2025 draft budget report prepared by Walker and Reid, which proposes an assessment of $1769 per share. Walker moved to accept the budget, which breaks down as follows:

$1579 per share to Operations

$ 190 per share to Reserves

Munroe seconded the motion, and after some discussion, the motion passed, 4 in favor and 1 opposed. This approved assessment represents a $42 increase over the previous year.

The Board considered the 2025 Reserve Study, which inventories the Suites’ material assets, and evaluates which elements might need repair or replacement over time, and the costs to do so. Walker moved to accept the Study, Bellah seconded that motion, and after some discussion, the motion passed 4 to 1.

Manager Reid reported on the Airbnb rental program. In October 2024 fifty-four nights were booked, and income for the month was $8643. The total revenue from Airbnb rentals, from June 2024 when it commenced to the end of October amounts to $22,533.

New Business:

Manager Reid reviewed with the Board the repair and replacement listing from the Reserve Study for 2025. She proposed from the listing the following items:

Antiques repair and restoration

Gazebo furniture

5-year certification inspection

Annual certification

New mattress sets

Exterior painting of stairs, rails, and fire escape

Tune-up program testing

Bellah moved to accept the proposed items for 2025, Munroe seconded the motion, and it passed unanimously. Regarding the new mattresses, the Board requested that Reid investigate the possibility of placing King-sized mattresses in some Master suites.

Manager Reid reiterated the approved 2025 assessment of $1769 and said that the invoicing process will begin immediately. The invoices will be emailed and mailed to all owners.

Reid reported that complimentary amenities, including coffee, the afternoon wine and cheese service, newspaper delivery, and Wi-Fi, cost the Association $18,300 annually, and that the cost of these free amenities is ever increasing. The Board agreed to consider raising the prices of room service and refrigerator items to offset these rising expenses.

Reid brought to the Board’s attention the property tax bills on the Association’s non-performing shares. In the past, the Board has authorized paying the property taxes to prevent the bills from increasing with added penalties and to make them available for sale. The total taxes due for the non-performing current inventory is $1567. Walker moved, and Munroe seconded a motion to pay these tax bills, and the motion passed unanimously.

Forward Planning:

Replacement of hallway and staircase carpeting will be addressed in 2025.

As the agenda’s business was completed, Walker made a motion to adjourn. Munroe seconded the motion, which was approved unanimously. The meeting was adjourned at 1:21 PM.

Respectfully submitted,

Nancy R. Hudson, Secretary

Saturday, January 18,2025 is the next BOD meeting