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

 

BOD Minutes of January 21, 2023

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:

  1. 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.
  2. 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

BOD minutes of November 5, 2022

 

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.
  1. 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