HSVPOA Board Meeting 8-19-20 Audio Only

Audio Only of HSVPOA Board Mtg 8-19-20

Due to former Board Chair Diana Podawiltz testing positive for COVID-19, the HSVPOA Board held its August meeting via Zoom. This meeting was not live-streamed, nor was it video recorded.

Sherman said the board is self-quarantining and in his case will do this through Friday, August 21, 2020.

Sherman explained, “the POA does not possess the equipment to live-stream from a Zoom meeting unless we have somebody with a camera actually in the room with one of us taping and streaming it to the internet.”

Lloyd said, “that is why we’re holding the meeting the way we did today. We don’t intend to do this in the future, but given what COVID has done to the nation, we have to be adaptable.”

To see video instructions on how to record and also live stream Zoom meetings, please scroll down to the end of this article.

Half-Cent Sales Tax

Sherman: “I have already received questions asking why we would need to take board time to do this. We do this to be good stewards to the community. We have to have good access to the Village and our roads are important in that factor. We were asked by the county quorum court to provide this resolution and we felt it necessary to do so.”

HSVPOA-Support-one-half-cent-gasoline-sales-tax

Executive Sessions 8-5 & 8-13

Ella Scotty: “the board held an election session on 8-5 2020. The board voted unanimously to allow Rose Law Firm to enter mediation with ISN [International Security Networks] to settle the gates lawsuit.

Scotty: “Item number two, the board voted unanimously to not continue litigation on the pursuit of the 7.7 million judgment against Capital Source Funding. That was for delinquent assessments.”

Scotty: “On August 13 the board had an executive session. The board voted 6 to 1 to authorize chair Podawiltz to sign the voluntary motion to dismiss without prejudice the judgment against Capital Source Funding, authorizing Rose Law Firm to file the motion.”

Scotty: “The second item, the board voted 4 to 3 to remove Diana Podawiltz as chair. Immediately following, Diana resigned from the board.”

Sherman welcomed GM King to his first official board meeting.

General Manager Charles King’s Report

King: “Today we have a little different, a little shorter than normal and I would expect to report on the previous month’s activities in operations. But today, I just want to take a brief second to just go over what we are doing right now as a team and what my focus is right now for the next couple weeks.”

King: “It’s working, number one, hand-in-hand with the board to continue to fine-tune, if you will the operations and our future moving forward as an operation as a whole.”

King: “Right now I am analyzing our team from the top down, making sure we are set up for success in the future. Making sure we are not top heavy. Making sure we are financially responsible as far as our layers in our organization. This is going to take just a little bit of time to reorganize and make sense of reporting procedures, reporting dynamics. And we’re just really making sure that we’re…all operations are working financially responsible. Making sure all of our operations are accountable.”

King: “My main focus is bringing back to the immediate future, really bringing back our F and B operations [Food and Beverage] and really overhauling the complete operation and bringing back a really good product to the Village.”

King: “I think my main focus here in the near future is to really bring back a true sense of pride into our operations. Really polish off the Hot Springs Village brand, and continue to work hand-in-hand with this board to continue to create the environment that our property owners deserve.”

King: “I am extremely excited about the future. I think once we get over these first few bumps and hurdles in the road things will start moving smoothly and I think the property owners will see some really good changes here in the future of the direction we are going.”

King: “It’s about extreme transparency. Extreme accountability. We’re going to have fun doing it. I’m excited about this board and where we take this thing and just continue to focus and working together. Working as a unit. Not one here – one here. But working together as a unit to accomplish all these goals and all these objectives that we’ll sit down and work on.”

King: “So from an operations standpoint we made a few moves. We’ve eliminated one of the roles. I have trouble with this, with the Chief Member Experience Officer. We removed that role from the operations. It really didn’t fit into what we were doing and we realigned some responsibilities underneath it. And there’s a few more changes to come in the near future. Just to continue to get better. We really need to really dive through all the operations and find out, make sure we don’t have any waste. Make sure we don’t have the overlapping of responsibilities and really get this team working together as a really tight unit. So that’s about all I have for today.”

King: “Like I said in the future, I plan on going in deep on what we’ve done in the previous month and we’ll have some more fun stuff here moving forward as far as changes to better the operations for the Village as a whole.”

Sherman: “Charles, I think I can speak for the board at this point for the fact that we’re looking forward to working together with you as a team as you mentioned and I think we can announce that we’re having one of those sessions next week to sit down with Charles and begin that process in detail. We’re looking forward to it. Welcome. You have a big challenge ahead of you but we know you are up for it. Thank you.”

COO Temple’s Public Services Report

Public-Services-Report-1

Click here to read the clarification of end of year operating cash

Treasurer Wayne Foltz’s Report

Click here to see Foltz’s full report.

Foltz stated that the PPP loan is very important to us and has helped us remain well into the black.

Foltz: “We’re not growing our golf numbers very much. They are pretty consistent. Our revenue is kind of flat in that area. And that’s one of the areas that maybe we can focus in and see how we can get more play to generate more revenue because we seem to be at a plateau. That’s where I’m hoping Charles can work miracles.”

Foltz: COVID has really affected the Recreation Department, especially at the Fitness Center. Utilization is way off because of COVID. “People aren’t willing to go to the gym,” stated Foltz.”

Foltz: “The financial results in my opinion, the shortfalls are projected to have future impact and continue to be a major concern. The thing that really concerns me is the PPP forgiveness will have a direct impact on our end of year financials.”

Foltz: “Future capital expenditures should be held to a minimum until operations losses are controlled within the amenities and staff has started to submit the PPP forgiveness on the SBA loan. Currently, we are having problems accessing the bank portal to submit the documentation. We can fill out the application but when we go in to put in the supporting documents, the portal doesn’t accept it. Regions knows that and are working diligently to correct that. Soon as that is corrected, we will have that in. The bad note is, originally it was going to take two to three months, it is now looking at five months or more before the loan qualifies for forgiveness and that puts us well into the first quarter of 2021.”

Foltz: “My concerns are the future revenue stream remains at significant risk. I believe that the board needs to determine how much cash we’re going to need going into 2021 as we see this COVID maybe continue well into the first and second quarter and maybe throughout the year. We will have the PPP money to rely on. So we need to start looking forward of how we are going to manage our cash and our assets through 2021.”

Foltz: “Operations shortfalls, in my opinion, some of the implemented controls on operations have reduced our losses. But we still have many difficult months ahead. More operation controls are needed to reduce our projected losses. Golf revenue helped hold our monthly losses and golf needs to continue to be profitable each month. I want to give kudos to the golf department who were positive $95,470 this month, although we are tracking below budget for 2019. It’s still positive and if we can continue to keep that number positive each month for the remainder of the year, that will help tremendously.”

Coreena Fetterhoff: “As an update on the PPP loan, we did find out there was an issue just between the browsers for us to be able to upload some information…We are in the process of submitting everything. Hopefully, we will have that wrapped up shortly.”

Dick Garrison asked what it would do to the year-end audit if we don’t get the PPP grant ratified until 2021.

The Treasurer did not know the answer to Garrison’s question but said he would investigate and get back to him.

Sherman said, “in summary, even during COVID, with the control of expenses, we are currently $477,000 ahead of where we were last year.” The board appreciates staff efforts to control spending.

King: “On that note, we are going to continue to really hold down expenses down to a minimum. We’re also going to find some really creative ways to start generating some extra revenue. We’ll be able to talk about that at the next meeting. We’re going to be responsible as far as expenses and really drum up some ways to get creative with golf and food and beverage will a whole different story. I think we’ll work hard and come out with a good picture.”

The following motions passed :

• Milsap Stone Mowing Contract for Lake Dams & Spillways (not to exceed $25,200)

• Revision of Recreation Committee Charter

• Revision of Trails Committee Charter

• Lakes Policy Revision

• Lakes Committee Charter Revisions

• Appointment of a Standing Marketing Committee and Approval of its charter

• Request the GM to solicit bids for an electronic/mail hybrid model of voting

Sherman Addressed Rubberstamping

Sherman: “I ‘d like to address a comment that I’ve gotten from actually several individuals that it looks like in the board meetings we are rubberstamping items. In essence, we are. All of these items have been a part of the discussion sessions that are held in preparation for the board meeting. Any of the discussions, agreements, dissensions, so on and so forth, are taking place in those discussion sessions. And they are also being done in advance like that so that we can get input from the property owners during the period between when the discussion session was held and when the board meeting is actually conducted. That is just a point of clarification as to why so many of these get passed unanimously, because they have already been discussed at previous meetings.”

Election of Board Chair and Vice-chair

Omohundro nominated Sherman as chair.

Scotty said as there were no additional nominations, Lloyd was elected chair.

Avila nominated Omohundro for Vice-chair. Tucker was elected as Vice-chair as there were no additional nominations.

Board Comments

Avila: “I am really glad the board approved moving the Marketing Subcommittee to a full standing committee. That group has been incredibly active in just the few short months it has been in place.” Avila said they are looking at revenue and will work closely with the Marketing Department.

Garrison: “…how impressed I am with the measured approach that Charles is taking to his new job. I applaud that. I know a bit about what he’s doing and trying to accomplish and I think he is spot-on in his approach. Charles, thank you for being you.”

King: “Thank you, Dick. It’s been a very interesting two weeks to say the least. But I think given some time, I think and I hope that the property owners will see that we’re going to be really diligent about making some very positive changes. And I think it all starts right here. It starts with this group working together and making sure we have our boundaries and our understandings of what we’re all doing. Like I said, I’m excited about the future. I think that great things can happen. I think it’s not going to happen overnight. With all the emails that keep coming, just be patient. But I promise you there’s going to be some good changes. I’m excited about it.”

Sherman: We will sit down and start the official process next week to establish what lanes people are going to be operating within and how we get this Village on the track that I think everybody wants it on.

Sherman: The progress with ISN is they have agreed to mediation and that is currently scheduled for October 14, 2020. The mediator is Jim Tilley, who is highly respected.

Sherman: The motion to dismiss the NRPI standing collection effort that’s been going on since about 2008 has been filed to dismiss that.

Sherman: “I would like to address the elephant in the room. As many know, Diana resigned from the board this last week. I would like to say that the action was taken by the board and by a majority of the board. When the board speaks as a majority, they speak for the board. When a majority makes a decision, it is our responsibility of duty of loyalty, obedience and duty to uphold those decisions that are made by the majority of the board.”

Sherman: “We will miss Diana. She worked hard and feverously. She put in extraordinary effort during her time on the board and as board chair. But I want everybody to know that this was a decision to ask her to step down as chair and she chose to resign. The board did not vote her off of the board.”

The meeting was adjourned at 10:09 a.m.

How to Record a Zoom Meeting

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How to Live-stream a Zoom Meeting

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By Cheryl Dowden, August 20, 2020

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