By Frank Leeming, June 17, 2020
Villagers urged to quit bickering and get behind POA board’s new effort to establish teamwork
Another move away from “corporate” governance was taken today by the POA board of directors. It did away with all references to a “chief executive officer” and in the future, the top staff position will once again be “general manager.”
The board also adopted a bylaws change lifted from 2011 giving directors a greater role in the operation of the Village. The key language says the board will have authority to:
“… consult with and provide direction for removal, at pleasure, all officers, agents, and employees of the Association, prescribe their duties, fix their compensation, and require of them such security or fidelity bond as it may deem expedient.
“Nothing contained in these Bylaws shall be construed to prohibit the employment of any member, officer, or director of the association in any capacity whatsoever.
“Such duties as are provided in this paragraph below may be delegated by the directors to the GM, who shall report his/her actions to the Board of Directors.”
The new board was elected this spring by property owners fed up with three or four years of governance and management geared to establishing a “corporate” environment and centralizing control in the office of the CEO.
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In prepared remarks near the end of the meeting, board chair Diana Podawiltz said the board “has and will continue to face challenges unprecedented in the 50-year history of Hot Springs Village.”
She said the board’s goal is to create a culture of teamwork between the board, employees, committees, and property owners. It will take time to build the teams and the trust needed, trust that has eroded over time.
Podawiltz deplored past actions where POA board members and key executives have “thrown individuals or groups under the bus with the language we use in emails, on social media, in reports and comments even made in meetings.”
The Village is coming out of “a period of a number of years since there was a wall built between staff, committees, property owners and, yes, even the board members.
“This board has torn down that wall.
“All of us can agree there is no other place like our beloved Village.”
Podawiltz said a new marketing program is being developed to make the Village more visible on the internet and attracting people to visit and consider making here their home.
“We believe if they visit, our incredible Village will sell itself.”
She urged property owners to tone down their bickering and work with the board to bring about the change which is needed.
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Treasurer Dan Aylward said the POA’s insurance company didn’t learn about the new DeSoto Pool until June 8. Coverage was arranged before the pool opened Monday, but premiums will go up.
In what is becoming a trend, Aylward said the new human-resources department head will be a manager and not a director.
The chief financial officer’s position will not be filled. Instead, accounting manager Coreena Fetterhoff has been promoted to comptroller and attended her first board meeting today. Fetterhoff was comptroller for First National Bank in Hot Springs.
Both Aylward and board vice-chair Lloyd Sherman praised her work and help in the transition following the resignation of CFO Liz Mathis.
The real-estate manager has resigned and it hasn’t been determined if the job will be filled.
Aylward said the annual budgeting process will be shortened to two months instead of six months.
Without the $3.1 million federal grant, POA revenue would be $661,828 behind last year, mainly because of the coronavirus pandemic.
The golf subsidy (losses) after five months was $239,162 over budget, continuing a negative trend seen in recent years. Aylward said it is unlikely the difference can be made up this year.
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Golf revenue through five months was $650,852 below budget or 25.4 percent. Critics have repeatedly assailed the quality of budgeting for golf operations.
Food-service revenue is “way off” because of the pandemic, Aylward said. After five months, revenue was $262,761 behind budget or 53.8 percent.
“We have a tremendous amount of deferred maintenance we have to address,” Aylward said. Roads, buildings, and other infrastructure need attention, he said.
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Interim general manager John Paul said the POA is having trouble hiring people to work at restaurants and the golf courses. As long as folks can get $600 a week in unemployment benefits for doing nothing, there is no incentive to find a job, he said. The $600 unemployment checks will end at the end of July.
Fourth of July fireworks have been pushed back to Sept. 25 to mark the Village’s 50th anniversary.
Swimmers have been slow to show up at the new DeSoto Pool, which will be staffed at all times by lifeguards. The POA is having trouble finding enough lifeguards, Paul said. Pool hours are noon to 6 p.m. and will be expanded when more guards are hired.
He emphasized the POA is vigorously following the pandemic safety rules.
Podawiltz thanked Paul for volunteering to step in as an interim general manager. The former golf director is working for minimum wage.
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In a review of three closed board meetings, Podawiltz said the vote May 20 to fire CEO Lesley Nalley was 6-1. Kirk Denger was the lone negative vote. Denger attended his first board meeting as a director; he’d attended prior public meetings on Zoom.
A meeting on June 12 discussed a complaint against a board member who someone said made disparaging remarks about the board. The witness outlined the complaint and the board member responded. No more details were made public.
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The board approved spending $500,000 to fix culverts, including one under DeSoto Boulevard near Diamante. The work will require closing DeSoto for a week and necessitate a detour for those who use the east gate.
Directors approved new charters for the Architectural Control Committee, Finance & Planning Committee, and the Common Properties, Forestry, Wildlife Committee.
Director Dick Garrison said he is pleased with the way the search for a new general manager is going. The only problem is getting the candidates together with the board because of the pandemic.
“I’m confident we will give the board a good group of candidates,” Garrison said. Sherman said the interviews are expected to take place next week.
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Village computer guru Dennis Simpson sent this along after last week’s little story about singer Charlie Rich:
“As a kid living in Benton, we were close to the place just down Highway 5 from where Charlie Rich lived. [Click here to see Charlie Rich’s Benton, AR home.]
“He was one of the most unassuming men you would ever meet. He eventually had to move from that house because people knew they could just walk up and knock and Charlie Rich would come to the door.
“His home was in the little subdivision on the right off Highway 5 just before you get to the Assembly of God Church as you’re going into Benton before the stoplight.
“I agree he died way too soon.”
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How was your day last Friday?
Around 11 a.m., the power at our house went out, then back on, then off. Long enough to shut down the computers and clocks. Then back on. When the computers rebooted, there was no internet. And no phones. Our Suddenlink VIP (video-internet-phone) service had been cut, apparently by the same backhoe or whatever that cut the electric line.
A 45-minute cell-phone call to Suddenlink ended with a promise to have service restored in 48 hours. You’d think a cable company would be able to fix a cable is less than 48 hours.
Next, the refrigerator dies. It’s not cooling. No ice being made. Call reliable Dale’s Appliance and a recording says he’s closed on Fridays. He’ll return our call on Monday.
Joyce spends hours moving things from the kitchen refrigerator to the garage refrigerator.
How was your Friday?
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And if you’re wondering how cable/phone/tv can be out for 29 hours in today’s era of relying on them: No one regulates cable companies in Arkansas.
Today internet service is as important a utility as electricity and water, but internet service providers have effectively lobbied our legislature to prevent any type of oversight or regulation. It’s not right, but that’s the way it is.
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Cover photo from Can Stock Photo
Julie
06/17/2020 — 2:25 pm
Agree that we must get behind this board. They have done more positive things for HSV in a very short time…a couple months…and they have done more to help right the ship than any board the previous decade!
Show them your love!!!
Make them proud.
They are doing very, very well…..and should be supported and thanked.
Greg
06/17/2020 — 3:02 pm
10-4
Mike
06/22/2020 — 9:51 am
👍
Elizabeth Berry
06/17/2020 — 2:54 pm
I, for one, am breathing a lot easier. This board has done more for the village then you know who, and I am grateful. The board is backed 100 percent by me and I hope more people will give them a thumbs up. Thank you board members.
Bill Griffin
06/17/2020 — 2:59 pm
I keep hearing about all positions except the Agronomist position. Has it been eliminated? If not who is gonna fill it? We still never heard why the Magellan guy was promoted and in the paper saying he was not gonna be the Agronomist? Just wanting to know what’s going on there
Anonymous
06/17/2020 — 7:31 pm
Transparency?
Andy Kramek
06/17/2020 — 4:00 pm
You have to remember that there are people in village who basically pay no attention to what is going on and who live secure in the belief that everything is just perfect (until, of course, something affects them directly). Just over 2/3 of residents voted in the last Board election, so almost 1 in 3 didn’t even bother to return their mail-in ballot.
Then there are others who think that the Lesley Nalley was the best thing that ever happened to Hot Springs Village, and who believe that she was the victim of a coup engineered by a few hostile people who influenced the election and (somehow) now control the new Board.
Given the above, “bickering” is not only inevitable it is actually a pretty mild outcome.
The Boards is doing exactly what they were elected to do, and they are fully deserving of support from us all.
Minn Daly
06/17/2020 — 5:02 pm
Congratulations to our BOD For moving forward with business when they entered into a huge mess that was a night mare to deal with. Thanks to the 5 members who voted Nalley out as CEO & kept the campaign promises to membership. Thanks also to keeping the BOD in position to deal with staff structure. Thanks to John Paul for putting on the GM hat until one is onboarded. HSV is now in capable hands to make our community sound again, with time. Minn Daly
James B
06/17/2020 — 5:03 pm
Hopefully the new marketing plan will target those states with high cost for retirees. One example is Colorado. One would need an income higher than 100.k to cover higher taxes including property taxes.
This state is now the little brother to California.
Tom Blakeman
06/17/2020 — 5:30 pm
Some good things and good information, came out of/came out at today’s BOD meeting. But there were some not so good and some which should have been mentioned but were not.
But let’s not discuss and be accused of bickering. There is still a long way to go.
steve bylow
06/17/2020 — 9:03 pm
Thanks again for the update – three things jump out:
1. Thanks for taking steps to provide greater Board oversight and engagement in Operations.
2. Thanks for John Paul suspending his retirement and helping out as acting GM at minimum wage.
3. Thanks for deciding it was best to have life guards at the new pool.
Steve
Vicki
06/18/2020 — 4:32 pm
While we are replacing incompetence, was anything been done with the food and beverage “director” Magday? It seems to me that steps could have been taken to promote POA restaurants during the COVID quarantine. I find it unacceptable that 53% decrease in revenue occurred when employing a director, or us he gone too? This could have been an outstanding opportunity to promote our restaurants and made them shine. Just say’n
Andy Kramek
06/18/2020 — 5:52 pm
Who? Do we really have a Food and Beverage Director? Never seen or heard of anything this person has done. The financial results from Food and Beverage certainly don’t make it look like there is a “Director” – more like “Directionless”.
The simple answer is to get the POA out of the restaurant business completely and let people who actually know how to run restaurants (and bars) do the job. They should stand or fall by their own efforts and pay their way out of their earnings. That’s how it is in the rest of the world, but somehow, not here!
Vicki
06/18/2020 — 8:08 pm
The guys name is Magday Hussien. He has been around since 2017. Other than sending out a weekly eblast, could never figure out what he did!
Tom Blakeman
06/19/2020 — 7:06 am
Magday is a good guy and is doing the best he can with an impossible situation. He’s been given a mission that even a famous name TV chef could not accomplish.
Before things can change our Board needs to get over the idea that we need full service restaurants at every golf course and that the days of “subsidization” are long over. Unlikely to happen.
No doubt this problem will continue to be studied, committee-ized, and further debated and deferred. Ultimately, I expect little change because subsidizing restaurants to the tune of $1/2 million per year is the way it’s always been done here.
Andy Turner
06/19/2020 — 1:23 pm
The weekly blast is essentially the same stuff every week.
Vicki
06/19/2020 — 2:56 pm
Agreed!
H Middleton
06/18/2020 — 6:50 pm
Is the pricing for a round of golf being looked at. No twilight specials and higher prices have forced a lot of us to back off and play less or just throw in the towel and find other things to do.
Tom Blakeman
06/19/2020 — 6:56 am
Couldn’t agree more. At about $40 per round including surcharge and tax for a prime time daily pay property owner we are priced well above anyplace else in a 75 mile radius. There is no evidence on an internet search (Golf Now) and other sites that we are even promoting golf at all to the outside world. If we were, the pricing would (based on our adopted fee schedule) also be much higher, as much as about $80 per round.
I do believe the new Finance and Planning Committee is taking a look at golf as I’ve been contacted recently by two of their members on the matter. I’m also hearing that the Board is going to be taking a hard look at our marketing in general – soon. So, we’ll see if that pans out. Given it is a “committee” working on this I have my doubts.
There have been a few younger looking and presumably “outside” players observed hitting off of the blue and black tees in the last couple of weeks. This was noted at the last board meeting and the comment from JP was something indistinguishable about “package play” whatever that means.
In any event, I’ve been writing and commenting about this golf pricing and marketing issue for user two years now and seen nothing change. In fact, things have gotten worse with the ill advised surcharge championed by our current Board Chair. Somebody else needs to take up this cause and start raising hell because I’m “tiring”.
Mort
06/19/2020 — 12:12 pm
I have tried to tell these people that when you add fees and surcharges and raise costs then less activity ALWAYS is the result.
If they lowered the fees for golf they would actually generate more revenue. This is simple economics. Apparently too simple, as the people setting our rates are clueless as to how things work.
With our rates the highest for 75 miles it is easy to see how our courses are not being fully utilized. And our courses are not superior to the others in our area, either.
We lost so much money on the failed and insane Troon contract, we will never even hope to break even on golf in HSV – it simply can not happen.
Major changes have to come. One of them would be to eliminate that crazy golf guy who does pretty much nothing and then takes all the money from the pro shop sales. Why do we have this guy around? To make even fewer people golf here????
Nuts.
Tie the salaries to the success of the program. Why is that so hard to figure out??????
We still have a long way to go here and, though I support what the BOD has done so far, they really need to wake up on this golf stuff. Get rid of the people running it into the ground and losing us more and more and more money every single day.
Bring in a turn around crew and pay them on commission based on profitability of the golf program.
Simple as that.
Now just do it.
William Lund
06/22/2020 — 5:58 pm
After an early Spring visit with the hope of building we were stunned to learn that the low side cost to build inside The Village was an average of $180-$200 per square foot… We always thought it was a special place but seriously it’s not that Special.
HSVP C
06/23/2020 — 10:48 am
William, thank you for your input. The price of building homes in the Village can vary. A home can be built for as low as $125 a square foot, which includes the lot and landscaping. Of course, if someone desires very fancy and expensive finishes, then that cost is going to be higher, just as it is everywhere.
Our Board and management are working very hard to streamline the operating of the POA and keep our assessments as low as they can. So this is definitely a factor one needs to consider when choosing the Village. Also, the cost of living in this area is relatively low.
I am not sure what builder told you that the low side was $180 to $200, but this simply is not true. I think you need to shop around and find a different builder.
William Lund
06/23/2020 — 9:31 pm
I would love to get a list of builders that would build me a home not lavish by any standards for $125/sq ft. We own two lots for years…nice lots. Two very popular contractors, one took days to look at and the other just told us that there was no way for him at $185/sq ft.
Another met with and stated he would check out the lots and never returned call. So you see after several days we were somewhat disappointed. Seems like contractors seem to think if you live in The Village you want a big expensive house…So Please send me your list.
HSVP C
06/23/2020 — 9:55 pm
William, are the lots “buildable?” That may be your problem. Send me a private email at pennywisebuys@gmail.com and I will try to help you.
William Lund
06/23/2020 — 10:30 pm
Yes of course they are buildable…
How do you think we got estimates?
Fact is contractors see $$$ when they
Hear The Village. Building cost more
There than ANY of the surrounding areas. Contractor even commented “nice flat area with minimal grading.” His price was $150/sq ft with no landscaping.
HSVP C
06/24/2020 — 8:39 am
William, I am sorry. I said, “buildable” meaning not difficult to build on. I suppose I wasn’t quite clear. I am sure you could easily get into $150 per square foot or even much higher depending on your finishings, kitchen, bathrooms, etc. The bottom line is the Village is a beautiful and wonderful place to live. You may consider purchasing something already built. As it is everywhere, it costs less to do that. Good luck.
Ron
09/19/2020 — 11:58 pm
Cheryl, do you happen to know the minimum square footage for a new home to be built in the village? Would the garage be included to help meet the minimum square footage. I have searched and searched to find out square footage minimums but have come up empty handed. I am looking to buy a lot in the Fresno Rd area before the POA (West Gate) side and was only wanting to build a smaller 2 bedroom home for my wife and I. Any information would be appreciated.
HSVP C
09/21/2020 — 10:33 am
Ron, it depends on the neighborhood. I do not think the garage is included in the square footage of the home. It would be best if you contacted the POA. The POA has a lot of lots for sale. Thank you.