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