What does he mean by "condition the fingerboard and frets"?
Conditioning the fingerboard may only mean lightly wiping it with lemon oil. You should learn to do that yourself.
What guitar did you buy? I'd be surprised if a brand new Yamaha, Takamine or LaPatrie needed any fret or fingerboard work. A Cordoba might need some fret leveling or fret-end dressing. Some of the Spanish factory guitars need no work (Saez, Ramirez, Alhambra to name three).
The San Francisco Bay Area is on the expensive side for set-ups. It's $25-35 for setting the nut and saddle action. Add $60-$70 for fret-leveling which is hammering down uneven frets. This would be work done by a competent guitar technician. I've never paid a top-level luthier to do any set-up work for me so I wouldn't know the price. Kenny Hill once adjusted the nut action on my Yamaha CG171SF for free while I was waiting for my Hill Estudio 45s to be set-up.
I don't know how much it costs for filing down frets, crowning them, and dressing them. That's a big job. I'd immediately return any new guitar needed that kind of work.
"The hardest time for most guitar players is the beginning stage, because it is all investment and no return." - Charlotte Adams
"It's not your guitar or lute that matters but what you can do with it." - Moi