Dear Fellow Members:

As you know, our departed member Bud Moose, was the prior owner of the Hilton Financial District and was allowing us to use it at a dramatically reduced (effectively free) rate for the last few years. After his passing, we were informed that the hotel could alter our arrangement at any time. That time has come.

On Friday, Kevin O’Brien, the manager of the Hilton (see the attached email), informed me that the hotel will be increasing the rate of our room rental to $500.00 per meeting. It’s unclear on whether this is effective immediately, but it’s likely to be soon, if not immediate. I’ve requested a meeting to discuss this with him, but as his numbers show, the charge is quite reasonable and they’re offering us a considerable discount to their retail rates. Currently, the ERT budget cannot accommodate that rate. Decisions must be made.

Nat Schmeltzer is investigating an option with a current member’s office conference room and we also have members investigating the following other options:

1.      Marines’ Memorial Hall (609 Sutter)

2.      University Club (800 Powell)

3.      City Club (155 Sansome)

4.      Regus Office Centers (various locations downtown)

5.      Federal Building (7^th and Mission)

6.      Screening Room at 580 Market Street

7.      Mechanics Library (57 Post)

Any ideas beyond these places would be very appreciated. Remember that whatever room we look to, it must be able to accommodate 20 people and coffee service (at least).

So, while we currently have some ideas on where to move, we may be confronted with some difficult choices. From what I’ve seen (and I’ve done a decent amount of research on this) - most other spaces will be much smaller (e.g., the Mechanics library officially only seats 14 in their conference room) and there are considerable other issues with location, equipment, etc.

The facilities we use are more important than it has been in past years. It’s difficult to imagine having speakers without audio equipment (for members who are harder of hearing) or a projector (to display onscreen presentations) and consequently, it’s reasonable to expect that anywhere the cost will exceed $150 a week (Food $50, A/V $100). So, based on the assumption that it costs $150 week x 50 weeks, we’re looking at $7500 / year minimum for just those basics. The current budget was about $3,000 annually last time I checked. So, regardless of what we do next, (1) membership dues will likely need to increase, (2) or we will need to start charging for meeting attendance, (3) or members will need to seek out donations to the club, or a combination of all three.

·         One of the great strengths of the Economic Round Table is its diversity, and I think we need to be very careful to make sure that any changes in dues don’t prevent certain standing members from participating. That having been said, I think we need to seriously consider increasing the ERT’s membership dues to a rate of $350 annually (or about $7/meeting). Assuming that 25 members pay the new dues, this would bring us to an annual budget of $8750 or $175/meeting.

·         Another alternative would be to continue charging the current membership dues, but to charge for meeting attendance. This is not an ideal solution, as it would require someone to collect at every meeting, but this is possible, in my opinion.

·         Finally, I also know that many members have the ability and would pay more – if given an opportunity. But, given the non-charity status of the ERT, I suggest that we consider methods to allow some members to make larger dues payments. (Perhaps allowing members to become “Sponsoring Members” or something at a higher rate?)

I’m asking all interested members to reach out and provide recommendations on how to address this challenge. I’m going to stay after tomorrow’s meeting to host an impromptu club business meeting to discuss this. Anyone who would like to help in searching for a new location (or with recommendations on how to stay at the Hilton) please let me know / attend that meeting. While I appreciate any advice on this matter, what we primarily need are (1) people prepared to contact and negotiate with potential locations or (2) who are interested in making a gift to the ERT.

I’m confident that we can work out a solution, both short and long term, but we need your help to do it. In its 70 year history, the ERT has endured several challenges and every time the membership has found a way to make sure the ERT survived and subsequently thrived. In that tradition, I’m calling to you to keep our unique organization together for another 70 years.

I look forward to your help.

Yours, Mike Bradley

Michael D. Bradley, CFA

Bradley & Company, LLC | Private Wealth Management

201 Mission Street, Suite 2280

San Francisco CA 94105

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