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