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 (7th 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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http://www.bradleyandco.com
http://www.linkedin.com/in/michaeldbradley
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