YWCA Apartments Board Meeting
271 Austin St.
San Francisco, CA 94109
June 21, 2006
Attending Directors:Michele Stratton, President
Charlene Smith, VP & Treasurer
Barbara Saunders, Secretary
Lillian Sing
Dorothy Jones (Provisional Member) / Absent Directors:
Gloria Lau
Kelly Dearman / Attending Staff:
Madelene Gallegos, Controller
Ingrid Chin, Property Administrator
Proceedings:
The meeting called to order at 3:30 p.m. by Michele Stratton.
Approval of Minutes: On motion by Dorothy Jones, the board approved the Minutes of the March 22, 2006 meeting, with corrections noted.
Finance Report:
Madelene Gallegos presented financial statements and reports-Balance Sheet and Income and Expense Statement thru May 2006.
¨ Ms. Gallegos reported that there is a negative variance due to various changes during the fiscal year, including but not limited to an increase in electricity rates as well as unexpected expenses that were previously thought to be prepaid. (Reference to Income line, Statement of Financial Position, and Last Year Statement)
¨ There was a recommendation to establish a Petty Cash fund because there is no cash/charge card available for incidental expenditures; suggested by Madelene and favored by Sylvia. Was this approved and set up? Non-issue – the Apartments staff had and have a $500 petty cash account.
¨ Ms. Stratton explained the structure of the various bank accounts maintained by the Apartments as well as the restrictions, balances, uses of, and approval procedures for each. Ms. Stratton made a reference to the Chart of Accounts and to a written report for the Board to review.
Capital Improvement needs:
¨ Ingrid Chin provided an overview of current projects and needs, including exterior waterproofing (Powell St wall), plumbing, and exterior doors (Miller Ave). After explaining the severity, level of priority, and scope of each project, Ms. Chin stated that the estimated cost would be less than the balance in Repair Escrow.
¨ Ms. Stratton explained that the Repair Escrow had been established for repairs (now complete) made in connection with the mortgage refinance in 2004 and most of the balance would be released next month. Ms. Chin requested that the money being released ($296,742.24) be transferred to the Repair Checking Account to fund current capital and repair needs, rather than to the RFR (Reserve for Replacements) which required HUD approval to use.
RESOLUTION: After discussing whether to place the balance in the RFR (Reserve for Replacements) or in the Repair Checking Account, the Board, on motion by Ms. Sing, seconded by Ms. Saunders, voted to place $50,000 in the RFR account and the remaining balance (approx. $246,742.24) into the Repair Checking Account.
¨ Ms. Chin explained that there are 2 major plumbing problems (sewer pipe and gutters) and proposed hiring a consultant to do an inspection and provide a written report/assessment of the anticipated work involved. The Board concurred.
¨ Ms. Chin also mentioned a concern regarding energy/PG&E costs, and suggested that she be authorized to hire a contractor to perform an energy audit and present this information at the next Apartment Board Meeting. The Board concurred.
¨ Ms. Chin made a reference to an Architects assessment and cost estimate regarding the possible kitchen renovation project.
¨ Charlene Smith stated that it was not a good idea to discuss long-term repairs (at this time) due to the fact that the kitchen remodeling is still currently in the idea stage and there has been no study on projected income from the project. Therefore, Ms. Smith committed to working with a third party (Jackie-a graduate of Culinary Institute of America and a Caterer) in developing a cost estimate/assessment and presenting this information at the next meeting.
Budget Overview:
(Reference made to Expense Report)
¨ Ms. Gallegos informed the Board that the Apartments requested a 6% rental increase from HUD to be effective on January 2006; however, the amount approved was less than the amount requested, lowering the anticipated revenue for the year.
¨ Sylvia Cagle explained that the budget for FY06-07 was tight, and she wanted to put in place pay increases that would pay staff a living wage. As a result, a cut in spending was needed in other areas, perhaps Assisted Living expenses.
¨ (Reference to profit/loss page in Expense Report) The Board engaged in a brief discussion regarding the current in comparison to past quality of life expenses—for example holiday celebrations and arts & crafts. The Board discussed whether or not cutting back in these areas would provide for a more reasonable budget in others. Charlene Smith expressed strong feelings that the YWCA continue to provide quality of life programs.
¨ Ms. Stratton proposed a relook at several budget categories so that all staff could be paid a living wage without any drastic changes in the current quality of life activities.
At 4:45, Lillian Sing excused herself from the meeting due to a prior engagement
¨ Ms. Cagle proposed, and Ms. Stratton concurred, that staff produce a revised budget within 3-4 weeks for the Board’s review, noting that the Apartments cannot produce a deficit.
The CCCC Lease Extension Discussion was postponed
Other Business:
It was noted that the FY05-06 audit of the Apartments was scheduled and would be complete by the next meeting. Ms. Cagle proposed that the auditor present his report at the next Board meeting, scheduled for September 20th, 2006 at 3:00 p.m. The Board accepted and agreed.
Meeting adjourned at 5:45 p.m.
Submitted: