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

BOD meeting October 2, 2022

 

San Francisco Suites

Board of Directors

Minutes of Open Meeting (draft)

October 2, 2022

 

I. Call to Order

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

II. Roll Call

Board Members present (via zoom):

Chuck Meibeyer, President

Jo Ann Trembath, Vice-President

Dwight Walker, Treasurer

Fred Munroe, Secretary

Jeff Reichel, Member at Large

Others present:

Cynthia Reid, General Manager

Bill & Eileen Neville, owners

Bob Goff, owners

Sue Josselyn, owners

Todd & Maureen Goolkasian, owners

III. Owners Forum:

There were no comments from the owners.

IV. Approval of Minutes:

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

V. Treasurer’s Report:

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

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

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

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

VI. General Manager’s Report:

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

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

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

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

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

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

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

VII. President’s Report:

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

VIII. Old Business:

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

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

IX. New Business:

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

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

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

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

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

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

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

by unanimous consent at 12:49 p.m.

Fred Munroe, Secretary

BOD Meeting June 26, 2022

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

  1. Call to Order

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

  1. Roll Call

Board Members present:

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

Fred Munroe, Secretary

Jeff Reichel, Member at Large

Others present:

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

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

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

  1. Owners Forum:

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

  1. President’s Report:

    1. Chuck noted that Dwight brought to his attention, the standing requirement for an appointed committee to conduct regular financial reviews. Our legal counsel confirmed this could be a standing subcommittee of the board. On a motion by Dwight, seconded by Jo Ann, it was moved that this standing committee would, at this time consist of the President and the Treasurer. The motion was approved unanimously.
    2. Compensatory time for the owners due to the pandemic expires on August 31, 2022. It was clarified this expiration date was previously set by the board and no further action is needed. Chuck com- mended Cynthia and all staff, along with the previous board, for their overall handling of ways to “balance” the challenges of many owners holding unused nights during the past two years due to Covid.
    3. At the time of the original development of the Suites, many shares were purchased with loans secured by their share. Those promissory notes were then resold to outside financial institutions. What we are now seeing is many owners being unable to sell their shares due to a lack of clear title ownership and/or liens for which there is no record of payment. Chuck suggested that the board make all reasonable efforts to help current owners clear these title issues. His intent was to make sure this information is widely known by all current owners, because some owners may feel they are faced with challenges that adversely affect the fluidity of their shares. Fred asked Cynthia how many shares fall under this “cloud”. She indicated that the association currently owns three shares that have unclear liens preventing them from being sold. Chuck said we are likely to see this happening more often in the near future. The board is pleased with the efforts that Cynthia has already made in this regard and concurs with the president regarding continued efforts to clear this issue.

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

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

  1. Treasurer’s Report:

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

    2. As of April 30, 2022, the operating account balance was $703,682. The Reserve account balance was $725,091. (Total fluid assets of $1,429,773) There were 6 delinquent annual assessments, totaling $9,589.30.
    1. We have not transferred reserve funds to the reserve cash account, as of today. Our bylaws direct us to do this within 10-days of receipt, which has not occurred. This will be addressed later in this meeting, along with questions related to operating cash on hand for the remainder of the year. However, our reserve balance in all areas is very healthy.
    2. Long term, Dwight is reviewing what we are incurring in banking fees, related to the regular transfer of funds. He will bring the board some recommendations in the near future to address this concern.

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

  1. General Manager’s Report:

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

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

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

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

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

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

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

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

    1. The President reminded the board that the Reserve Contribution of $180,784.80 needs to be moved from Wells Fargo Bank to the Capital One Reserve account. On a motion by Jeff, seconded by Jo Ann, to do so, this was then opened for discussion. It was agreed that Cynthia, the President, and the Treasurer shall evaluate whether there is a more advantageous destination point for this reserve contribution. The motion carried unanimously.
    1. Cynthia asked for approval of a Summer Parlor Sale, with the same costs and guidelines as the summer sale from 2021. The president reviewed why these sales need to include a provision requiring escrow and title insurance. He reminded the board of our earlier discussion about the historical title, lien, and liability issues with some shares being offered for sale. On a motion by Dwight, seconded by Jo Ann, the motion to authorize the sale carried unanimously.
    1. The President spoke about how historically, an owner’s liability for damages, when they or their guest caused damage has not been as clearly communicated as we would like. These guidelines have, on occasion, preventing the association from recovering the true cost of damages. This does not require direct board action. However, it was agreed that the reservation confirmation, sent out at the time of booking, needs to be more clear regarding liability for damage during a stay.
    1. Increase in Valet Parking fee: To more clearly recover actual costs, it has been recommended the Valet Parking fee be increased from $52 to $55. On a motion by Fred, seconded by Dwight, a motion was made to do so. Motion carried unanimously.
    1. Chuck introduced the General Manager’s recommendation to increase Bonus Time rates to $160 for Parlors and $180 for Master Suites. He reviewed the need to adjust this cost to remain more realistic with the actual market value, in relation to other lodgings in the city and the owner’s current assessment rate for the 7 inclusive nights per share. A motion by Jeff, seconded by Fred, was made to institute these new bonus night charges. Further discussion brought up by Dwight, looked at considering an in- crease for all bonus nights to a flat $200. The original motion, not amended, carried on a 4 to 1 vote.
    1. Items 6 and 7, under New Business, related to cyber security and the status of our website, were tabled to a later date.

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

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

Fred Munroe, Secretary

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

BOD Meeting march 15, 2022

San Francisco Suites
Board of Directors Annual Meeting
March 12, 2022

1. Kurtis Peterson of Inspectors of Election called the meeting to order at 11:00 AM and announced that a quorum of ballots had been achieved, with 342 ballots returned to be opened and counted.

2. President Bellah then assumed the chair and asked for a roll call.

Board members present:
Geoffrey Bellah, President
Jeff Reichel, Treasurer
Chuck Meibeyer, Member-at-large

Board members on Zoom:
Jo Ann Trembath, Vice-President
Linda Banner Secretary

Others present:
Cynthia Reid, General Manager
Ken von Berg, IT Consultant

Owners Present:
Sue Joselyn
Fred Munroe
Dwight Walker

3. Owners’ Forum: No owners spoke at this time.

4. President’s Report: President Bellah stated that the city and county of San Francisco had lifted their mandate for indoor masking; however, staff at the Suites as well as guests still have the option to continue wearing masks. He also reminded all that the share time compensated to owners who were unable to use it during the Covid shutdowns must be completed by August 2022. Finally, he announced that owner Marvin Salles had donated a Ukrainian flag to the Suites to be flown at the Powell entrance during the present crisis.

5. Approval of Minutes: The minutes from the January 15, 2022, open meeting were unanimously approved following Reichel’s motion which was seconded by Trembath.

6. Treasurer’s Report: Treasurer Reichel reported that last year’s drop in revenues, due to the periodic shutdowns and reduced occupancies, contributed significantly to the $21,000 shortfall. Another factor was the small and thankfully decreasing inventory of non-revenue producing shares. However, with the Suites now fully open, with close to full occupancy, projected revenues, such as those derived from parking and Bonus Time, have returned. Another positive development has been Manager Reid’s successful sale of most of the Association-owned shares. Reichel reminded the Board of the continuing need to maintain the aging building and and he emphasized the importance of repairs over replacements, unless called-for and fully funded by the Reserve fund. Overall, the Suites are in a good position, better than hotels, because we receive our revenues from assessments rather than from bookings.

7. General Manager’s Report: Manager Reid stated that in the first six months of 2021 the Suites was only 50% occupied, which affected monthly revenues from Bonus Time and parking. Even so, in the same year 814 out of 816 shares’ assessments were received. Reid announced that 16 Association-owned parlors that cannot yet be sold will be or have been adopted: six are tax-defaulted and cannot be sold until after the April auction; three have pre-existing loans with no proof of pay-off; but seven will be sold later in 2022 once their adoption period ends. Reid revised the earlier figure on parlor shares sold in 2021: 23 sold but 3 with possibly unpaid loans.

There was a VOTA delinquent assessment auction on February 24, 2022, where 2 master shares were sold for $4,878.40, and 2 parlor shares were not sold. Subsequently these parlor shares will be returned to the Suites to be sold by the Association in 2022.

Regarding the 2022 annual assessment, 25 owners are now delinquent in their payment, and a 10% late fee has been added to their assessment. Reid mails invoices and emails to these owners monthly to remind them of their overdue assessments.

The Employee of the Quarter is Eric Ingersoll, Front Desk Supervisor. Eric was commended for his service to the Association by President Bellah and given a cash award.

8. Old Business: Manager Reid did a walkthrough with contractor Steve Barton to go over the Reserves Study’s suggestions for replacements and repairs. Reid also reported the completion of the refinishing and sealing of the kitchen floors. The repainting of a beam in the lobby will be completed during the replacement of the lobby wallpaper project. The floor in the boiler room is cracked and in need of repair. Also, up for replacement are the blinds in all the suites.

Manager Reid repeated that there will be in April an online auction of shares in tax-default. Those not sold then will come up for auction again in May at a lower minimum bid.

9. New Business: The Board unanimously approved a Hold Harmless form to be completed by vendors and contractors entering the Suites following a motion by Reichel and seconded by Meibeyer.

The Board also approved a request by Manager Reid to bid for shares for the Association at the May tax-default auction. Reichel so moved, Meibeyer seconded, and the motion passed unanimously.

President Bellah requested that the Board consider refinishing or replacing the wood counter surfaces in the pass-throughs between the kitchens and dining areas in all suites. The Board agreed to have Manager Reid seek estimates for the work and report to the Board at their next meeting.

9. Election results: The Inspector of Elections announced the results of the Board election and the question over revenue surplus. Fred Munroe and Linda Banner won seats on the new Board, and the membership agreed to return any surplus funds to the next year’s operating budget.

10. Forward Planning: The Board Room remodel and new wallpaper for the lobbies were deferred indefinitely. Blinds replacement should happen in 2022.

11. Adjournment: The annual meeting recessed at 12:04 PM.

Organizational Meeting: The annual meeting resumed at 12:15 PM, with Vice-President Trembath as chair. Secretary Linda Banner who had won one of the open seats on the Board announced that she would not serve. Member-at-large Meibeyer was elected by the new Board to be President for 2022-2023, Jo Ann Trembath will continue as Vice-President, Fred Munroe will serve as Secretary. After a discussion and vote of the Board, Dwight Walker, the third-place candidate for the Board, was elected to fill the vacant Board seat, and was also elected Treasurer. He enthusiastically agreed to join the Board. The Board then discussed and set a calendar for meetings in 2022-2023.

Respectfully submitted by
Linda Banner, Secretary

BOD open Meeting Jan. 15, 2022

San Francisco Suites
Board of Directors’ Open Meeting
January 15, 2022

1. President Bellah called the meeting to order at 11:08 AM via zoom.

2. Board Directors present:

Geoffrey Bellah, President
Jo Ann Trembath, Vice-President
Jeff Reichel, Treasurer
Linda Banner, Secretary
Chuck Meibeyer, Director-at-Large

Others present:
Cynthia Reid, General Manager
Fred Monroe, Owner
Laura Ricci, Owner
Dwight Walker, Owner

3. President’s Report: President Bellah explained the necessity in holding an emergency Board meeting on January 4, 2022. In early 2020, the Board adopted, and the Association approved new election rules to comply with SB 323. Later in the same year, the Association approved new bylaws whose election rules sometimes repeated and sometimes conflicted with 323’s. In order to proceed with the upcoming 2022 elections based on these revised bylaws, the Board needed to repeal 323’s rules altogether. Bellah then mentioned the continuing requirement, imposed by the city and county of San Francisco, for indoor masking in the Suites’ communal areas (lobbies, hallways, elevator). Bellah asked the Board to extend the closure of the Board Room to meetings and events until the health situation improves. Director Meibeyer so moved, Treasurer Reichel seconded, and the motion passed unanimously. Bellah reminded the Board that the current restrictions mean that the guests are being asked to enjoy the afternoon wine and cheese service in their suites. Calls for nominations to the Board for the 2022 election have been sent out, with a deadline of February 4. Ballots will be sent to owners on February 12, and the election will be conducted by the Inspectors of Election via zoom at the annual meeting on March 12.

4. The minutes from the November 6, 2021, meeting was approved unanimously, with Trembath’s motion seconded by Reichel.

5. Treasurer’s Report: Treasurer Reichel’s report on the financial status of the Association was positive, with the PPP loan of $128,000 forgiven, the 2021 Reserve contributions fully funded. Owner Walker asked if owners might have access to the financial reports provided to the Board at each meeting as part of their packets. The Board thought this might be possible as pdf attachments offered on the website.

6. General Manager’s Report: Manager Reid stated that she has sold 26 shares out of 37 in the Association inventory. Of the remaining eleven, some will come on the market once they move out of adoption, but four have title problems which will need correction before they can be sold. There will be a VOTA auction of four shares delinquent for non-payment of their assessments on February 24, 2022, at City Hall, and another auction of tax-defaulted shares in April 2022, probably held online. Regarding maintenance, Reid mentioned suite 25 needing ceiling work, and that carpets and upholstery will be cleaned during the first and second weeks of February 2022, necessitating the closure of some suites. Also, Lawson roofing will soon conduct its annual inspection of our roof. Houseman Luis Martinez and Housekeeper Julie Torres have been named Employees of the Year for their willingness to cover other employees’ shifts and work overtime during the pandemic.

7. Old Business: General Manager Reid was congratulated for her successful handling of the parlor inventory sale. Reid noted that the kitchens’ parquet floors have all been resealed.

8. New Business: President Bellah advised that several items on the Forward Planning list, including the Board Room remodel and the lobby wallpaper replacement should be postponed until the pandemic subsides, and it is safer to have outside contractors working at the Suites. He also mentioned that with the disruption of supply chains and worker shortages, he would be hesitant to start a project that might not be completed on time. Overall, the Board thought it would be best to leave it to the Manager’s discretion when to commence certain projects, such as the window blinds replacement. Meibeyer suggested that any outside workers be required to show proof of vaccination before working at the Suites and sign the “Hold Harmless” agreement required of staff and guests. Reid said that she would check with the Association attorney about the legality of this suggestion.

9. Adjournment: Trembath moved, and Meibeyer seconded the motion to end the meeting at 12:23 PM. The motion passed unanimously.

Respectfully submitted
Linda Banner
Secretary

BOD meetings November 6, 2021

 

DRAFT

San Francisco Suites

Board of Directors’ Open Meeting

November 6, 2021

1. President Geoffrey Bellah called the meeting to order at 11:00 AM in the Board Room.

2. Board Directors present:

Geoffrey Bellah, President

Jo Ann Trembath, Vice-president

Jeff Reichel, treasurer

Linda Banner, Secretary

Chuck Meibeyer, Director-at-Large

Others present: Cynthia Reid, General Manager

3. Owners’ Forum: No owners being present, the Owners’ Forum was postponed.

4. President’s Report: President Bellah explained the current San Francisco mandate requiring masks in all common areas at the Suites. During the afternoon wine service, guests are asked to take their glass of wine and cheese plate to their suites and to not congregate in the lobbies. With the County of San Francisco now allowing indoor gatherings if all participants verify vaccination status, Manager Reid has asked the Board to re-open the Board Room for rentals and other owner functions, provided that any one using the Board Room provides evidence of vaccination or recent covid testing. Director Meibeyer moved to open the Board Room, with verification of vaccination, Vice-President Trembath seconded the motion, and after a brief discussion, the motion passed unanimously.

3. The minutes from August 7, 2021, meeting was approved unanimously with Vice-President Trembath’s motion seconded by Treasurer Reichel.

4. Treasurer’s Report: Treasurer Reichel mentioned that he had spoken with the Suites’ CPA and with the person who oversees the Reserve Study in order to answer questions about the distribution of the PPP loan, the $21K shortfall from 2020, and the purposes of Reserves. He also stated that the overall financial condition of the Association is good.

5. General Manager’s Report:

a. Ten parlor shares have been adopted.

(Six are tax defaulted and cannot be sold.) Also, there have been ten owner deed backs in 2021. (Three shares are in process of acquiring bond insurance for possible liens; once done, they can be sold.) Reid also mentioned that 26 Association-owned

parlors have been sold; that sale means that their assessments will be collected and the shortfall experienced last year will not be repeated. There should be a Delinquent Assessment Foreclosure auction held by VOTA in February 2022 to sell four other shares

(2 Masters, 2 parlors) which are in assessment-default.

b. The parquet flooring in suite 25 has been replaced, and the chandelier in suite 32 has been re-balanced. Also, the roof garden has been replenished, with Bella Fiora Florist on a maintenance schedule.

c. Manager Reid explained in some detail the provenance of last year’s $21K shortfall, which was mostly the result of 10 shares’ assessments not being collected. She also explained how the PPP loan of $128,000 was distributed according to the government’s requirements to pay for staff salaries and benefits. This loan, which has been forgiven because we did use it appropriately, allowed the Suites to keep all employees on payroll and in good health, and to keep the facility functioning to conduct the Association’s business although it was closed to guests.

d. The employee of the quarter is housekeeper July Torres.

6. Old Business:
a.Vice-president Trembath moved to approve the proposed 2022 budget, Treasurer Reichel seconded the motion, and after some discussion it passed unanimously. b. Manager Reid discussed the success of the recent parlor share sale, with 26 shares being sold. c. A new decorative security gate has been installed at the Pine Street entrance. Manager Reid stated that glass panels will be attached next week.

7. New Business:
a. After conferring with our Reserve Study consultant, Manager Reid stated that the Reserve is 43% funded, or in the “fair” category. b. Vice-president Trembath moved that the Association accept credit card payments for the annual assessment, Director Meibeyer seconded the motion, and after some discussion regarding the cost to the Association of credit card charges, the Board unanimously approved the motion with the requirement that any credit card payment add the surcharge to the assessment. There will be different surcharges, depending on whether the charge is made at the front desk or by telephone. c. Vice-president Trembath also suggested a revision to the Rules & Regulations to prevent any guest’s reservation from being changed unless such change is approved by the General Manager. (Currently Front Desk staff can make the changes.) Trembath’s motion to revise the Rules & Regulations so that these changes can be made only at the discretion of the manager was seconded by Treasurer Reichel. After some discussion, it passed unanimously. d. In April 2022 there is planned a tax-default auction held by the SF Tax Collector for four shares (2 masters, 2 parlors). Manager Reid will inform the ownership once the auction is officially announced.

8. Forward Planning: The several items being considered under “Forward Planning” are being postponed due to the pandemic, which makes renovation and redecorating projects difficult to plan and complete. President Bellah suggested a ranking in the importance of these items in case any of them can be started next year.

9. Adjournment: Vice-president Trembath made a motion to adjourn the meeting. Treasurer Reichel seconded the motion which passed unanimously. The meeting adjourned at 12:40 PM.

Linda Banner
Secretary to the Board