BOARD of directors meeting august 7, 2021

DRAFT

San Francisco Suites

Board of Directors’ Open Meeting

August 7, 2021

  1. I. Call to Order

President Bellah called the meeting to order at 11:03 AM. The meeting was held online via Zoom.

II. Roll Call

Board Directors present:

Geoffrey Bellah, President

Jo Ann Trembath, Vice-President

Jeff Reichel, Treasurer

Linda Banner, Secretary

Chuck Meibeyer, Member-at-Large

Others present:

Cynthia Reid, General Manager

Fred Munroe, owner

Sue Jocelyn, owner

III. Owners Forum

Fred Munroe suggested reviving the Owners Bulletin Board at the Suites’ Website to allow for and improve opportunities for members of the Association to share information about the Suites. Sue Jocelyn mentioned that she enjoys the Zoom meetings.

IV. President’s Report

President Bellah reported that the city seems more lively and “normal” than a few months earlier, with more businesses open, pedestrians strolling, and cable cars running. Even so, the city and county of San Francisco have imposed a new mandate requiring indoor masking and social distancing in response to the increase in Covid cases from the Delta variant. That means the cancelation, once again, of the afternoon wine and cheese service and the reimposition of safety protocols at the Suites.

V. Approval of Minutes

The minutes from the June 19, 2021, meeting was approved unanimously, following Trembath’s motion and Jeff’s second. President Bellah thanked Secretary Banner for her excellent work.

VI. Treasurer’s Report

  1. A. The Association’s future finances remain in flux because of the consequences of this year’s shutdown due to Covid, with a higher number of non-productive Association-owned shares in the inventory, mostly due to deed backs. These shares will need to be sold, or at the very least adopted, in order for the Association to meet its annual budgeting needs.

  2. B. Borrowing from the Reserve fund to pay for unanticipated maintenance and repairs is acceptable if the money is returned from the following year’s assessment. 2021’s high legal expenses because of the Bylaws election will probably not be repeated in 2022.

  3. C. All in all, the Association remains is good financial condition, and the deferred Reserve payment from 2020 will be deposited by the end of this year.

VII. General Manager’s Report

  1. A. The Association currently owns 29 parlor shares. Of these, 13 were adopted in July, with 4 adopters promising to purchase them; 3 were sold in the recent Board of Directors’ Auction; and the remaining 13 will be available for adoption or sale in the fall.

  2. B. Seven owners have not paid their 2021 assessment and their shares will move toward foreclosure. The VOTA Auction of these shares (3 Masters and 4 Parlors) will be held in December.

  3. C. There have been 7 deed backs so far in 2021.

  4. D. The Reserve Study for 2021 has been completed and delivered.

  5. E. The parquet floors in several suites’ kitchens have buckled and are needing replacement, at $5,000 per floor. The buckling is due to age, with the adhesive drying out.

  6. F. Paint touch-ups are being scheduled for all suites.

  7. G. The annual fire sprinkler inspection has been completed.

  8. H. The boiler has been inspected and a small repair was done.

  9. I. The chandelier in suite 31 was balanced and rehung.

J. The Employee of the Quarter is Tony Verastegui.

Old Business

  1. A. Indoor masking and social distancing are again required at the Suites due to the surge in Covid infection rates. Moreover, the Board Room is not available for rentals. The afternoon wine and cheese in the lobby is cancelled. Instead, guests are encouraged to bring their wine and cheese selections to enjoy in their own suites.

  2. B. The Board unanimously passed a motion to change the Rules and Regulations prohibiting the storage of bicycles and other personal vehicles at the Suites. Trembath offered the motion and Meibeyer seconded it. President Bellah will revise the new rule to eliminate the vague term “recreational vehicle.”

  3. C. The Adopt-a-Share will be held in September.

  4. D. Mark Leahy, the Suites’ gardener, and florist will replace the plants on the roof for $2400. He has also proposed quarterly visits to the roof to maintain the garden at $60 per visit.

New Business

  1. A. A draft of the 2022 budget has been presented to the Board, for approval at the November meeting. It includes a 6% increase in Operations and a 5% increase in Reserves. (In 2021 the increased were 5% respectively for both.) The proposed annual assessment for 2022 would be $1453, an $80 increase over 2021.

  2. B. Bonus Time rate increases were approved unanimously by the Board, with Trembath making the motion and Reichel seconding it. The new nightly rate for Parlors will be $140, and for Masters $160.

  3. C. Bill Patterson, our webmaster is updating the website and needs to move the site to a new host. In order to do this, the sfsuitescsa.com domain needs to be attached to the General Manager’s email at creidgm@sfsuitescsa.com.

  4. D. The Board unanimously approved Manager Reid’s request to post sales of Association-owned shares at various online sites, i.e., Redweek, Craigslist, tug2.net, and eBay, with Meibeyer introducing the motion, and Trembath seconding it. In approving it, the Board emphasized the importance of selling shares over adopting them; and authorized Reid to hold a special sale of Association-owned parlor shares for $1 a share, not including closing costs. To further the appeal of these shares, the Board proposed seeking to reduce the high cost of escrow and eliminating the requirement to purchase title insurance. (Of course, escrow will still include a preliminary title search, which may or may not uncover any liens or other problems with the title.) Member Meibeyer agreed to create a form which would allow new owners to opt out of title insurance.

  5. Forward Planning

The long-anticipated Board Room remodel, window blinds replacement, and new lobby wallpaper projects are deferred until 2022.

Adjournment

President Bellah adjourned the meeting at 12:45 PM, following a motion by Trembath, seconded by Reichel, which passed unanimously.

 

Board of Directors Open Meeting June 19, 2021

Draft

San Francisco Suites

Board of Directors’ Open Meeting

June 19, 2021

I. Call to Order

President Geoffrey Bellah called the meeting to order at 11:08 am. The meeting was held online via Zoom.

II. Roll Call

Board members present:

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

Others present:

Cynthia Reid, General Manager Sue Josselyn, Association member, joined during the meeting

III. Owners Forum

No owners being present at the time, the Owners Forum was postponed.

IV. President’s Report
A. President Bellah read to the Board a letter from two Association members who commended the General Manager, the staff, and the Board for maintaining safety measures during the pandemic and for keeping the high standards of service and accommodation once the Suites reopened.

B. Bellah then described the newly revised safety protocols now in place, including optional masking for guests and staff, and the many services which have returned to the Suites, including daily housekeeping, the afternoon wine and cheese service, and the availability of the Board Room for special events.

V. Approval of Minutes

The minutes from the March 13, 2021, meeting were approved unanimously, following Trembath’s motion and Reichel’s second.

VI. Treasurer’s Report

A. The PPP loan of $128,000 will be forgiven, probably by the end of the year, but as of the present date it is still listed as a liability in our budget.

B. The many repairs during the past year were covered by the Reserve Fund but have been costly, oftentimes exceeding what was budgeted because of the high expenses in San Francisco. The Reserve Fund needs to be replenished with more realistic budgeting.

C. There will be a shortfall of approximately $21,000 this year, with $19,000 in lost assessment revenue due to foreclosures and unsold shares as well as lost revenues from Bonus Time, parking fees, etc. The ongoing sales and adoption of Association-owned shares should help ameliorate this shortfall somewhat.

VII. General Manager’s Report

A. Currently the Association owns 28 shares, and eleven shares are in foreclosure because their owners have not paid the 2021 annual assessment. Also, three deedbacks are in process.

B. The Association sold one Master share for $3500.

C. $172,176 has been transferred from the Operating Account to the Reserve Fund, with approximately $84,000 remaining to be deposited to the Reserves by the end of the year.

D. The parquet floor in suite 25 has buckled, probably due to age, and must be replaced. The parquet floors in suites 31, 33, and 35 have all been replaced recently because of water damage or age.

E. The Employee of the Quarter is Rick Boyce.

VIII. Old Business

A. The Wifi and reservation systems have been or are currently being upgraded to improve coverage, strength, and protection in the case of power outages.

B. Security has also been upgraded with alarms now set to the first floor lobby windows and a buzzer entry for the Powell Street entrance. The Pine Street gate should be installed by the end of this month.

C. Manager Reid described the policy for allowing service animals at the Suites, including the requirement that all requests for accommodation be signed and validated by a physician.

IX. New Business

A. Although masks are no longer required for vaccinated guests and staff, the Board unanimously passed a motion, introduced by Meibeyer and seconded by Trembath, to require non-vaccinated guests and staff to wear a mask when at the Suites and to inform everyone of this policy through signage. All guests will be required to fill out a form at the front desk to acknowledge their vaccine status.

B. The Board unanimously passed a motion, introduced by Meibeyer and seconded by Reichel, to extend until August 2022 the compensation plan allowing owners to rebook share time lost because of the pandemic. Manager Reid assured the Board during the discussion that there would be sufficient availability of suites if the motion were adopted.

C. The Board decided to postpone a decision on hiring a landscaping or gardening company to maintain the rooftop garden. Manager Reid will inquire about such a maintenance program from our florist Mark Leahy, and provide the Board with some estimates at the August meeting.

D. The Board unanimously passed a motion, introduced by Reichel and seconded by Trembath, to add to the Rules and Regulations a prohibition on storing bicycles, motorcycles, scooters, and other recreation vehicles at the Suites. There will be a reminder of this policy on the confirmation letter with an offer by the Front Desk to help anyone bringing such a vehicle to the Suites to find a storage facility.

E. The Board approved a motion, presented by Trembath and seconded by Reichel, to allow Manager Reid to hold an auction for six Parlor Shares in September 2021. There will also be an Adopt-a-Share this month ending on July 1 for other available Parlors.

F. The San Francisco Planning Department has informed the Suites that the apartment building at 655 Powell Street, just across Pine Street, will be converting their ground floor garage and storage area into six units.

X. Forward Planning

A. The anticipated Board Room remodel is currently on hold but hopefully will be completed in 2022.

XI. Adjournment

The Open Meeting was ended by unanimous consent at 12:40 pm. The next Open Meeting of the Board will be held on August 7, 2021.

Linda Banner
Secretary, Board of Directors

board of Directors Meeting March 13, 2021

Draft
San Francisco Suites
Board of Directors
Minutes of Annual Meeting
March 13, 2021

I. Call to Order
President Geoffrey Bellah called the meeting order at 11:00 am. The meeting was held
online via Zoom.
II. Roll Call
Board Members present:
           Geoffrey Bellah, President
           Tom Weber, Vice-President
           Jeff Reichel, Treasurer
           Linda Banner, Secretary
           Jo Ann Trembath, Member at Large
Others present:
           Cynthia Reid, General Manager
III. Owners Forum
Several owners spoke to the Board about today’s election, and complimented the Board and Manager for maintaining standards and enforcing safety protocols.
IV. President’s Report
President Bellah described the new simplified format for posted minutes as being more in compliance with Davis-Stirling and with the practice of other HOAs.
V. Approval of Minutes
The minutes from the January 9, 2021, meeting, in the new format, were approved unanimously following Weber’s motion and Trembath’s second.
VI. Treasurer’s Report
A.   The PPP loan of $128,000, which must used for salaries and health benefits, will most probably be “forgiven” as we have met all the criteria.
B.   During 2020 the Association “lost” approximately $40,000 in anticipated Bonus Time revenue.
C.  Planned replacements and occasional repairs often cost more than projected in the budget or in the Reserve Study. The Reserve is currently at 44% for full replacement, which is considered “fair.”
D.  The 2022 budget may increase the Reserve contribution from the annual assessment.
VII. General Manager’s Report
A.    Association-owned inventory totals include 18 Parlor shares.
B.   43 owners are currently delinquent in paying their 2021 assessments.
C.  7 delinquent shares are in foreclosure, owing the Association $15,074.
D.  There are 6 Deed-backs in process.
E.   A new houseman and night auditor has been hired to replace the now-retired David Bahrain.
F.   The Employee of the Quarter is Luis Martinez.
G.  Current projects include a new door buzzer and intercom at the Powell entrance, replaced parquet flooring in suites 33 and 35, roof repairs, and new shingles on the storage structure.
H.  January foreclosure auction was postponed due to pandemic.
VIII. Old Business
A. The City of San Francisco has lifted the quarantine requirement for guests outside of the Bay Area. Moving from the “Purple” to “Orange” tiers means that offices, stores, movie theaters, museums, and gyms can increase their occupancy and services. Indoor restaurants are now able to open with 50% occupancy. Hotels can now serve food.
B. Given the cost and labor involved in conducting elections in-house as well as the legal exposure, the Board approved unanimously a motion to use an outside election service, such as TIE, for future elections.
IX. New Business
A. After reviewing the Reserve Study’s recommendations for replacement and consulting with Cynthia Reid, the Board unanimously approved replacing the blinds in individual suites and the wallpaper in the lobby.
X. Forward Planning
The Board agreed to postpone the planned Board Room remodel until the pandemic eases and
the Association’s financial situation stabilizes.
XI. Election Results and Organizational Meeting
A.    Sheila Kelly from TIE (The Inspectors of Elections) announced the results of the Board of Directors election, with the three highest number of votes going to Chuck Meibeyer, Jeff Reichel, and Jo Ann Trembath.
B.   The incoming Board offices will be as follows:
           Geoffrey Bellah, President
           Jo Ann Trembath, Vice-President (Two-year term)
           Jeff Reichel, Treasurer (Three-year term)
           Linda Banner, Secretary
           Chuck Meibeyer, Member at Large (Three-year-term)
C. The dates for next year’s meetings will be as follows:
           August 7, 2021
           November 6, 2021
           January 15, 2022
           March12, 2022
No meeting is currently scheduled for June 2021.
XII. Adjournment: The meeting ended by unanimous consent at 12:20 pm.

 

 

 

Board of Directors Meeting Jan. 9, 2021

Draft
San Francisco Suites
Board of Directors
Minutes of Open Meeting

January 9, 2021

I. Call to Order

President Bellah called the meeting to order at 11:00 a.m. The meeting was held online via Zoom.

II. Roll Call

Board Members present:

Geoffrey Bellah, President
Tom Weber, Vice-President
Jeff Reichel, Treasurer
Linda Banner, Secretary
Jo Ann Trembath, Member at Large

Others present:

Cynthia Reid, General Manager

III. Owners Forum:

Several owners spoke via Zoom to the Board about the upcoming elections, contracting with an outside company to conduct the elections, and complimented the management and staff for maintaining standards and enforcing safety protocols.

IV. President’s Report:

President Bellah summarized the current situation involving the Suites’ recent closure due to the pandemic and the prospects for reopening when ICU capacity reaches 15% or higher. He also reminded all of the Board’s decision to allow owners to rebook missed share time in April, May, July, and August of 2021.

V. Approval of Minutes:

The minutes from the November 7, 2020, meeting were approved unanimously as submitted.

VI. Treasurer’s Report:

  1. The Paycheck protection Program (PPP) loan of $128,000 allowed the Suites to remain solvent in 2020 when revenues from Bonus Time and parking were somewhat lower than originally projected. We have met the criteria for the PPP loan to be “forgiven.”

  2. Several projects were completed this year, some anticipated (wallpapering the Board Room, upgrading the wifi system) and some as emergencies (plumbing and electrical repairs).

  3. All in all, the Association remains in good shape financially in spite of the closure.

V. General Manager’s Report:

  1. Association-owned inventory totals seventeen parlor shares Thirteen of these shares were adopted in April and August 2020. Four were not adopted, and $5284 must be written off as bad debt.
  2. 2020 Annual Assessments still outstanding – $10,858 Seven shares are currently in foreclosure due to delinquent assessments.
  3. 2021 Annual Assessments received – $620,144
  4. Board of Directors Holiday Auction. No bids were placed on the four available parlor shares.
  5. Pine Street Gate. Application was denied by San Francisco Planning Department and will be appealed.
  6. VOTA 2020 Auction of seven shares. Auction is postponed due to pandemic.
  7. Employee of the Year is Eric Ingersoll
  8. Digital Fire Alarm Mandate does not apply to timeshares

VI. Old Business:

No need to approve replacement of fire alarm system (see above).

VII. New Business:

  1. The Inspector of Elections reported the results of the election to approve “restated” bylaws. With a total number of 343 votes cast, 337 approved, 6 opposed, and 1 vote was disqualified.

  1. The Board also announced that The Inspector of Elections will conduct the Board election in March 2021. There will be three openings on the Board; and according to the just-approved bylaws, the two highest vote-getters will serve three-year terms, and the third highest vote-getter will serve a two-year term. After 2021, all Board members will serve three-year terms.

VIII. Forward Planning:

The Board Room remodel is on “hold” due to financial uncertainties and the effects of the pandemic.

IX. Next Meeting Date: The next open meeting of the Board of Directors is scheduled for March 13, 2021.

X. Adjournment: Meeting ends by unanimous consent at 12:05 p.m.

Linda Banner, Secretary
Board of Directors
San Francisco Suites

Board of Directors Meeting November 7, 2020

General General General San Francisco Suites (SFS)—Board of Directors (BOD)
General Meeting—November 7, 2020
DRAFT

  1. President Bellah called the meeting to order via Zoom 11:03 AM and asked for introductions. President Geoffrey Bellah, Vice-President Tom Weber, Secretary Linda Banner, Treasurer Jeff Reichel, Member-at-Large Jo Ann Trembath, and General Manager Cynthia Reid were present. (Owner Sue Josselyn later joined the meeting at 11:15 AM.)

  2. It was determined there was a quorum to hold the meeting and, with no owners present at the time, that we could dispense with the Owner’s Forum.

  3. In his President’s Report President Bellah mentioned that the bylaws election conducted by The Ballot Box had to be aborted due to “difficulties with their process.” Fortunately, it had not cost the Association anything, with The Ballot Box absorbing all costs. After consulting with our attorney and based on his recommendation, we have now contracted with The Inspector of Elections agency to conduct the rescheduled bylaws election on January 9, 2021. General Manager Reid read a letter to the Board submitted by owners Jim and Cynthia White regarding the restated bylaws in which they complain of the proposed new terms and term limits for Board directors. After correcting two errors in the letter, Bellah asked the Board to consider revising the restated bylaws to conform with the original intentions of Directors Weber and Trembath: the new terms being three years but the term limits being two, not three consecutive terms. Weber moved so, Trembath seconded, and the motion passed unanimously. Bellah reminded the Board that the annual meeting is scheduled for March 2021 at which time three Board positions will become open, those currently held by Weber, Trembath, and Reichel. The elections in March will be subject to the new election procedures outlined in the restated bylaws if they are approved in January.

  4. President Bellah made a motion to accept the minutes of the August 15, 2020, meeting. The motion was seconded by Vice-President Weber. After some discussion, the motion passed unanimously.

  5. Treasurer Reichel gave the Treasurer’s Report. He stated that the Association is “OK” financially; however, he also saw some justification for the anticipated increase in the 2021 annual assessment, partly due to the loss of revenues during the Suites’ six-month closure and partly due to the expense of several major maintenance/repair projects that came up unexpectedly during that time. Vice-President Weber asked Treasurer Reichel about the PPP loan forgiveness process. Reichel mentioned that forgiveness should not be a problem as we will be able to meet all the conditions, i.e., having applied most of the loan to funding salaries and employee benefits. Weber mentioned that our building is “old” and it will continue to deteriorate, so there will always be additional expenses to maintain it, such as the elevator.

  6. General Manager’s Report—General Manager Reid stated that currently there are 16 Association-owned Parlors. At the August Adopt-a-Share Auction the 4 available Parlors were, not surprisingly, not adopted. Reid suggested that we hold a “special” auction in December 2020 to sell these 4 Parlor Shares. In this proposed Holiday Auction, new owners would be responsible for the closing costs as well as the 2021 annual assessment. Reid recommended a low starting bid. Vice-President Weber made a motion to accept the Holiday Auction Program as outlined by General Manager Reid, with a starting bid at $100, Trembath seconded the motion, and after some discussion, it passed unanimously. President Bellah made a motion to accept the 2021 budget and the $51 increase in the annual assessment to $1372 per unit. This budget includes a 4% increase for Operations and 3% for Reserves. Treasurer Reichel recommended that the Reserve increase should be about 5% each year after this coming year. However, because we have had reduced use of the Suites this year, it would be OK to get by with a smaller amount for this year. General Manager Reid mentioned that the Suites has maintained its desirability in spite of the pandemic shutdown, and that she has prospective owners (especially from the Napa area) waiting to buy into the Association. Member-at-Large Trembath seconded President Bellah’s motion and after some discussion, it passed unanimously. General Manager Reid mentioned that the window and door grill project at the Powell Street entrance was complete; however, the proposed gate on Pine Street was not approved by SF Department of Public Works. Reid will complete some more paperwork and re-apply for approval. General Manager Reid also noted the recently installed and upgraded Wifi system at the Suites. Reid reminded everyone of the 25% limit for occupancy at San Francisco restaurants, hotels, timeshares, which we are following. Additionally, General Manager Reid mentioned that a new second banister from the 4th floor to the roof has been installed, that the Pine Street and Powell Street door knobs have been replaced to more firmly and securely lock, making the Suites safer, and preventing any more unwelcome intruders.

President Bellah introduced the Employee of the Quarter, Gloria Soto.

  1. Old Business: General Manager Reid mentioned that the wallpaper installation had been completed in the Board Room. Needless to say, there were some “issues” to be addressed, such as the dry rot behind the old wallpaper.

  2. New Business: General Manager Reid mentioned the need to comply with the San Francisco’s mandate to install a digital fire alarm system by July 2021, which might cost up to $80K. Vice-President Weber mentioned that he will help General Manager Reid with this project. Additionally, our webmaster Bill Patterson has recommended that the Suites’ website be updated: more attractive, simpler to use, more features. President Bellah made a motion to approve this expense, Weber seconded the motion, and after some discussion it passed unanimously.

  3. President Bellah brought up Forward Planning, which includes the proposed remodel and refurbishment of the Board Room in 2021. He suggested postponing this matter until March, 2021, given the uncertainty generated by the pandemic and the two Association elections. General Manager Reid thanked President Bellah for “being available” for consultation with her and with the attorney during the bylaws revision process, and Bellah replied that he considers the newly restated bylaws to be more appropriate and accessible than the older ones which seemed more suited to condominiums and corporation-controlled timeshares. President Bellah made a motion to adjourn the meeting at 12:20 PM, Vice-President Weber seconded the motion, and the motion passed unanimously.

 

August 15th Board of Directors meeting

San Francisco Suites (SFS)—Board of Directors (BOD) Meeting

Open Meeting–August 15, 2020

DRAFT

President Bellah called the meeting to order at 11AM and asked for Roll Call/Introductions. All BOD were present on the Zoom call, including President Geoffrey Bellah, Vice-President Tom Weber, Secretary Linda Banner, Treasurer Jeff Reichel, Member-at-Large JoAnn Trembath, and Manager Cynthia Reid, and there were no owners present. Owner Sue Josselyn joined later. Since there was a quorum, it was determined to hold the meeting.
Since there were no owners present for the Owners Forum,
President Bellah began his report.
Bellah reminded all that the SFS is currently on “pause” as the City is not yet allowing hotels, short-term rentals, or timeshares to reopen.
He described the upcoming election to approve the revised By-Laws. The membership will vote for their approval on November 7, 2020. One purpose of the revision is to remove all direct references to the Davis-Stirling Act. This was based on the recommendation of our attorney, Wayne Louvier, who believes that by doing so SFS can function more efficiently, especially with respect to elections.
He asked the Board to determine whether term limits should be reinstated in the new Bylaws. Term limits had been voided by SB 323 in 2020, but our revised Bylaws could bring them back. After some discussion, the Board decided to reinstate term limits. They proposed increasing each term of office to three years from two, and to set the limit at three consecutive terms. VP Tom Weber moved to reinstate these new terms and limits, Member Trembath seconded, and the motion passed unanimously. President Bellah indicated that he and Manager Reid would work out a plan to implement the new term limits process.
Bellah reminded all that once we are dissociated from the Davis-Stirling Act, we can return to our former, simpler, and less expensive elections procedures. However, the Davis-Stirling Act and SB 323 still apply to us until we have ratified the new Bylaws on November 7, 2020, and so the approval election will be conducted under their rules. An independent contractor,The Ballot Box, will be responsible for sending the ballots, inspecting the election, collecting and counting the ballots once they are returned. Manager Reid suggested that President Bellah vote on behalf of the Association on the SFS-owned shares. Vice-President Weber said that it would be best to have a cover letter from either The Ballot Box or the attorney instead of President Bellah for the election of the restated Bylaws. Even so, President Bellah will be writing a President’s Letter to the membership soon before the election to update them on the situation at the Suites.
Member-at-large Trembath made a motion to have the minutes from the June 13, 2020, meeting approved. Treasurer Reichel seconded the motion, and it passed unanimously.
Treasurer Reichel gave the Treasurer’s report. He stated that we are doing well, in spite of all the expenses on the maintenance and repairs of the building from the Reserve Fund, including the new electrical, plumbing, WiFi, and the digital fire alarm system. And he proposed that we try to earn more interest on our reserve account, especially if/when we are unbound from the Davis-Stirling Act. When President Bellah asked the Treasurer about revenue losses due to the six-month closure, he reported that the decreases are mostly due to lost parking revenue and bonus-time income, which would be about $40,000 over 6 months. We have received a PPP loan to partially cover the payroll expenses. Manager Reid mentioned that if at least 60% of the $128,284.00 loan is used for payroll and health benefits, and 40% for utilities, then it can be “forgiven.” She will apply for the loan forgiveness forms from Wells Fargo in September 2020.
Manager Reid gave her report on the status of the SFS. She began by reporting that SFS owns 16 Parlors. 8 Parlors were adopted in April, 4 Parlors could be adopted in August, and 4 Parlors will be offered for sale at the Board Auction in September for a minimum bid of $1321.00 each. Additionally, 3 owners have installment plans and owe roughly $1872 and 7 owners are in foreclosure with a balance due of roughly $16,140. There was a hazardous electrical situation, which required immediate attention at a cost of $24,007. The money was taken from the Reserve account, as these were repairs. She mentioned that the assessments for 2020-2021 would include a $51 increase from 2019-2020 to $1371.80, which would allow 4% increase for Operations and 3% increase for Reserves. She reported on the Pine Street gate and the Powell Street grill work projects: they are currently in the SF City approval process, which should be completed in a couple of weeks, and they will be installed shortly thereafter. She also reported on the updated WiFi/Filemaker project, which is moving along appropriately. She stated that she has joined the SF Hotel Council to gain information about how other hotels and timeshares are dealing with the closures and pandemic. She mentioned that ventilation throughout the building and especially in the back office is a most critical issue, especially when she and Tony have to work together in that area. Regarding the office, she suggested cutting open the plexi-glass window to allow for airflow from the outside into the back office. Also, the CDC has recommended having windows and doors throughout the Suites open as much as possible to allow for fresh air. It appears that the staff are comfortable wearing masks and maintaining social distancing. Additionally, she mentioned that the Front Desk is calling owners to remind them of their share time loss and to offer compensation in 2021 as approved by the Board in June.
Old Business:
Board Room Wallpaper Replacement – Manager Reid mentioned that Member-at-large Trembath and interior designer Pam Murphy came to SFS a couple of weeks ago and joined by Secretary Banner (via FaceTime) reviewed wallpaper for the Board Room. It ended up that they selected the same paper already recommended by Designer Murphy for the Board Room. And they decided to wait until the 2021 budget is done before deciding on the wallpaper for the lobby.
Rules and Regulations—Member-at-large Trembath asked about the confirmation messages for Bonus Time. She asked that they not include the price of Bonus Time since it is often offered to friends and family as gifts. Manager Reid said that she had created two different confirmation messages, with and without prices, and that owners can request either. Regarding moving guests to other suites during their stays, President Bellah suggested allowing Manager Reid and the staff to handle that delicate situation if it ever comes up.
New Business:
Digital Fire Alarms were discussed. Manager Reid said that the City will require these to be installed in every suite and working by July, 2021, and our electrician has said that it could be a very expensive project. Vice-President Weber offered to help Manager Reid with the process, working with both the City and with the contractor. There are also some old wiring concerns with the chandeliers, and our electrician will try to correct the situation without removing them.
President Bellah made an emergency motion to install an additional railing from the roof to the 4th floor landing, using a white painted railing (which will match the other railing) instead of brass. Member-at-large Trembath seconded the motion, and it passed unanimously. During the discussion, Sue Josselyn mentioned that her daughter fell coming down from the roof, and Secretary Banner mentioned that her former partner also fell coming down from the roof, which contributed to his demise.
8. Adjournment: President Bellah made a motion to adjourn the meeting at 1PM. Treasurer Reichel seconded the motion, and it passed unanimously.