by Glen Grussaute, Published September 12, 2019
HSV POA Board of Directors:
Although I have been told not to expect a response to a message that is critical of the BOD and/or its CEO I am hopeful that you may do so.
My wife and I have lived in the Village for approximately 1 1/2 years. Unfortunately, we did not realize that there were major areas of concern among many residents regarding the direction that the BOD and it’s CEO were planning to follow. After learning of the dispute I spent time meeting with the CEO, the past President, Tom Weiss, several of the candidates running for election this year, and with John Cooper. I also spent a considerable amount of time digging into the financial statements of the POA. That proved to be quite an adventure because in my 32 years as a CEO in the Non-profit world, I have never seen such poorly constructed statements and in particular such a flawed budgeting process. In my conversation with Mr. Weiss and with Mrs. Nalley, I realized that they really did not have a handle on a best practice budgeting process. I have known several people with accounting degrees over the years who did not understand budgeting. Likewise, I was also fortunate to have several CFO’s work for me who did understand the best practice approach to budgeting.
The direction for the Village being pursued by the previous 7 BOD Members and the CEO, in my opinion, and, that of virtually everyone I have spoken to was clearly rejected by the membership in two distinct elections. First, the proposed amendments to the Declarations and Articles of Incorporation were soundly defeated last fall. Likewise, with the election of three new BOD Members, all who ran on the position of opposition to the direction being proposed, it should have been made clear to the new BOD and the CEO that the majority of property owners are not supportive of continuing down that path. Yet in a recent message by the CEO she, in a belligerent tone in my opinion, stated that she plans to proceed “full steam ahead” with her plan. Regarding our CEO, I can not begin to express my disgust and disbelief with the manner in which Tom Weiss structured her contract as he was leaving office and with new BOD Members coming on board two weeks later. I can only say that the 7 members serving at that time should be ashamed of such shoddy practices. To require 6 of 7 BOD Members to alter her employment status goes against the grain of ethical practices for a Non-profit BOD.
So, that said, my questions are as follows:
1. Knowing the widespread dissatisfaction among residents with the direction the previous BOD was taking us, will the current BOD continue down that path this year?
2. When will the BOD and Senior Management construct a budget that is based upon best practices rather than the flawed process that is in place?
3. When will the BOD and Senior Management implement a cost/benefit analysis for large capital projects prior to implementation? I would seriously doubt that, if done prior to beginning construction, the swimming pool would not have passed that type of analysis. Likewise, the proposed renovation of Balboa Golf Course and Clubhouse, though a good idea on the surface, is being pushed at the community with very little time for discussion. In reading the highlights of the proposal last month, I did not see a lot of analytical data to support what was said.
4. When will the BOD begin listening to the discontent that exists in HSV regarding the management of our community?
5. Why, unlike targeted marketing to seniors by communities in Florida and Arizona, do I not see HSV advertisements in publications such as AARP or Golf Digest?
In closing, Hot Springs Village has a lot to offer, especially to people who are retired and those getting ready to retire. However, we are a community facing a financial “train wreck” because of the serious deficits in funding depreciation of existing assets. Facing that, how can the BOD and Management continue adding assets that require a lot of money to maintain (the swimming pool for example) and, a $6 Million renovation of Balboa?
Your time and consideration in reading my message is appreciated.
Glen Grussaute, Published September 12, 2019
Anonymous
09/12/2019 — 10:06 am
A very good article. A very good explanation stating fact in why the CEO AND 5 Board Members need to vote like the people want or be voted out and fired.
Mike
09/12/2019 — 10:11 am
Glen, Thanks. We welcome you to the struggle.
A coherent and straightforward message to our leadership. We see it, oh why, oh why, do they plow onward into the abyss???
Linda Van Scotter
09/12/2019 — 10:20 am
I have these same thoughts in my head everyday , for most of the last year.
Budgets and presentation are abysmal. I concur with you. Thank you. I hope everyone gets to read this article.
Even simply why not open up the woodlands for a large board meeting next week? We will have 300 people or more there. This board and CEO do not represent the village POA in a fiscally reapo and not respectful manner.
Elizabeth Berry
09/12/2019 — 10:36 am
Well said. Please run for the board. We need people like you to represent us.
Cheri Nelson
09/12/2019 — 10:38 am
Thank You Glen for saying what we all have been say for the past two years.
Jan Parker
09/12/2019 — 11:07 am
Please run for the Board. We need you and Mr. Sherman.
anonymous
09/12/2019 — 11:27 am
Glen,
You are right on target. The answers to your questions are:
1. Yes
2. Never
3. Never
4. Never
5. Incompetence
We have a majority of senior staff and board members, past and present, who do not belong where they are. The only solution will be to force them out and force changes.
This will only occur when someone or some few step forward and take action to form an entity, raise considerable funds, hire attorneys and take action, probably in the courts.
anonymous too
09/12/2019 — 9:22 pm
Totally agree … after attending today’s “Balboa Golf Course and Club House” presentation it is clear there is a total lack of professionalism on staff … and above!
The plan lacks any measure of justification.
The fact that there are 111 golf fronts lots available on Balboa golf course has no relevance to the benefit that once the course is redone it will draw retirees to the Village. Demand for golf front property is far behind the number of available homes for sale now and the future. Buying a lot on Balboa and building is just not a good decision in that is very questionable that one would ever break even.
Adding a surcharge to existing green fees will drive down the number or rounds played each year as it has with every other price increase, and the annual deficit will continue to grow. Oh … I forgot its a problem with the weather!
Many avid golfers believe that the Balboa greens are in the best condition of all the courses in the Village. But … what do they know!
Everyone seemed to agree that the sprinkle system has needed to be replaced since 2006, so why wasn’t it made a priority. Not the PGA way you say!
Now the Balboa club house has to be torn down … because a to tall truck ran in to it; the seams on the windows need to be replaced; it need to be updated so handicap people can visit and use the facilities; the kitchen is upstairs (were the major dining area was also located); and we no longer need a ballroom for dances (where at one time there was standing room only crowds); and it was (and could be restored) the most magnificent venue in the Village, but now we just need a snack bar and proshop … the PGA way!
What … someone also suggested the POA should consider managing the Village on a balanced budget. Heaven forbid!
The Villagers are the customers … so why focus on the needs and desires of the customers … if you don’t have to. Nah, nah!
Susan Cox
09/12/2019 — 12:18 pm
Very well said. It is amazing that we the people of the village share the same concerns and can’t do anything about it until a whole new board is elected. Smh!
Anonymous
09/13/2019 — 6:14 am
How do we do that “Coup” thing?
Mary Odom
09/12/2019 — 12:43 pm
Agree 💯% and it hurts that so many of us feel this way but have our hands tied. Please run for the Board…we need you!
Judy Weatherly
09/12/2019 — 12:54 pm
Glen thank for that very well written analysis if our Village. You are dead on!
Our CEO is financially bleeding us to death!
Many of us have thought same things but hats off to you for talking to Mr Weiss and Mrs Nalley plus looking at financials.
Scarry accounting frm what I have heard.
Run for the board!
Clyde Berry
09/15/2019 — 7:01 pm
Amen to Judy’s Comment and her plea!
Melvin west
09/12/2019 — 1:25 pm
Wow you hit the nail squarely on the head she seems, along with her followers on the board will go ahead he’ll bent for leather
Do you think we have a way to put a stop to them?
Anonymous
09/12/2019 — 1:39 pm
Glen Grussaute – you’ve got my vote for BOD!! Run Glen Run!
LEAVE LESLEY LEAVE!
Minn Daly
09/12/2019 — 1:44 pm
Glenn, thank you! I have lived here since 1988, this all started because POA members like me thought if we elected board members that campaigned on doing what was right would follow through and accomplish what was right for our community. Instead they hired 3 general managers, one who did not like her title so she became a CEO with the legacy boards authority & the idea that we as members were totally dysfunctional. Mr. Wiss & legacy BOD changed BOD rules so it would be hard to terminate her because they assumed we were dysfunctional as well! ! What are the questions that all members asking? Do they hate this community so much that they want to destroy it? Obviously they pretend to know right from wrong but yet at meetings when a member rejects Boards actions, in a straight forward manner they are treated like a criminal. How far does this go? Is it for title or legacy of doing something they think is great? What are they promised? We need to seek non profit legal council an get attorneys to guide the process for takeing back our rights & regain trust with membership. Minn Daly
Mike Behm
09/12/2019 — 1:59 pm
I share your concerns regarding the poor financial management of the POA. As an experienced financial executive who has worked for large cash troubled companies, I am disturbed by the lack of rigor in the areas of budgeting and capital spending analysis. I have expressed my views already about this impending doom called the Balboa golf course replacement. To your points I would add one critical element – reserve analysis and planning. We need to see a complete analysis of our asset base and an assessment of replacement timing and cost. I am horrified to think what that would show regarding the adequacy of assessments and reserves. I would rather know the answer than continue to be confronted with unfunded multi-million dollars repair and replace projects like the pool and Balboa.
P Daly
09/12/2019 — 2:50 pm
Glenn, obviously you haven’t met
with Board members luering and Erickson and discussed the complexities that make up HSV ( comparable to EXXON and Rhode Island .. if you say it enough, it becomes true) . I would encourage you to submit those questions through the proper chain of executive positions (created by this complex system) and schedule a meeting in a place with very limited seating , bad lighting and lots of background noise on your dime and time , and prepare yourself for an insight into the operations of HSV that few ppl can say they understand or believe . You will leave there a changed person and possibly with your past experience , a compassionate benefactor of this system .. err … I mean operation 🤷♂️
Dorothy
09/12/2019 — 3:58 pm
Great words very needed. Leslie Nalley has everything so backwards
She is completely unqualified for any kind of leadership position. She thinks EVERY ONE works for her! Wrong….The Board works for us as property owners and she is only here to follow the directions of the Board. She also should be doing the actual duties that she hired all of her “directors” to do. We should do something legal to get rid of her. THere Is no telling how much crime is involved. We need a huge audit of the real financial situation…..It is only getting worse! Your article is perfect!
Bonnie S Hampker
09/12/2019 — 6:28 pm
What a great letter. I have wondered if all the ballets sent out for us to vote have just been trashed when received back at the POA. It seems almost everyone I have spoke with has the same questions & feel the same as you but have long been ignored. I believe in book smarts & degrees but common sense goes a long way as well & we could use some folks with a good combination of all.
The man above the clouds
09/12/2019 — 6:50 pm
I moved here to be in a community and a village I did not move here to be the product of corporate stock, I did not appreciate the board and the CEO treating us as cattle , we came here to retire to live out our dreams not to be treated like non-human entities , annoyances
Tom Williams
09/12/2019 — 10:08 pm
I wrote a comment and some one took it down. Who did that ?
HSVP C
09/13/2019 — 6:41 am
Tom Williams, your comment was not removed. Perhaps there was a glitch. Please repost it. Thank you.
Tom Williams
09/13/2019 — 11:58 am
To late to repost it, the post was intended for the meeting yesterday. Dog and pony show just as I had predicted. Appeasing us with there phony facts and figures that we all can see thru, our words go in one ear and out the other . It’s all mis management moving our money around and not being truthful to us . We were given the money to fix the Balboa golf course year’s ago but no they wanted to build woodlands . So here we are still taking while all the other infurstructors are being treated with duck tape. But they failed to tell you about those issues. I will state this for those who do not understand, raising our assessments is not the answer . That’s like giving a teenager a credit card with no limits . Folks I will fight against that mind set all day long. Because there are widows living here on there husbands SS.
So I say to those people if you have extra money and you think we should raise our assessments , GO GIVE IT TO THE POA , they will gladly take it and wast it as they are good at doing so .Remember your not the only one here , we have to think about those folks that are just getting buy on SS and also have health issues . GOD HELP US ALL !!
Melinda Noble
09/13/2019 — 1:39 pm
I think before we turn any more money over to this BOD/CEO we need to see what happens with the pool. This project stated at $700,000 ended at $1.2 million. I for one hope it doesn’t go the way of the DeSoto restaurant or the new gate system only time will tell. The Village is about to be overrun with debt without a real plan to repay any of it. What we saw yesterday was not a plan it was smoke and mirrors.
Man above the clouds
09/13/2019 — 6:11 pm
No Road repaving year 1 pickleball courts no Road repaving year 2 the pool no Road repaving your 3 Balboa do I need to explain anything more
Mike Mooney
09/13/2019 — 6:24 pm
Dick Garrison was fired by the bod today at 4:30 pm. It was a 4 to 3 vote. I think we can all figure out who voted for it. These people have to go. This is a travesty of justice.
Out of here
09/13/2019 — 7:20 pm
Hard to believe these legacy board members are this stupid, but it is obvious. They insist on being divisive and untrustworthy. Don’t know how they sleep at night.
Anonymous
09/14/2019 — 8:28 am
We need to just quit complaining and hire professional Lawers to take our concerns to court. Our complaining hasn’t worked. Our concerns are not considered when decisions are made. The board is not working. They have voted as they have been told. One person is running our Village and that’s not the way it should be. Let’s go to court! I believe this is our only solution.
Richard Haack
09/14/2019 — 12:30 pm
Richard Haack
To Glen Grussaute, Your analysis is correct- we are all fed-up and vehement at continuing (after VETO) with the CMP (as a Governance Document), continuing with the Changes to the covenants and the grand mis-management by the BOD & CEO. Let’s send out a HSV vote (just like last year) to FIRE the CEO and 4 of the BOD.
A second line should include a vote for a committee to work with the remaining 3 BOD while we hire a new Village (General) Manager- that will actually work with the BOD.
David Sintich
09/16/2019 — 1:03 pm
Richard and Glen are correct. And I also think Richards’ idea of a new vote is in order. This is a private community and we are the residents who voted people in and can also demand to make changes that do not conflict with Arkansas or U.S . law. We need a vote paid for by OUR POA funds and counted by our approved choice team of residents. People voted in are NOT anchored in concrete. WE as POA members should DEMAND a new vote be taken and then the choice will be decided as to keeping the now directors or replacing them with new people we all choose and not the seat fillers they have chosen in the past. We have rights and we ALL need to be involved TOTALLY.
Kirk Denger
09/19/2019 — 8:48 pm
Sign the petition to remove Board of Directors, Mondays at the DeSoto club 5:30.
Anonymous
09/18/2019 — 7:09 pm
Glen , Agree we are not doing a good job funding depreciation of existing assets. Interested in some ideas from you on what we should do. the board is not adding assets that require a lot of money to maintain, these assets already exist. Inadequate funding has allowed them to get run down and deteriorate to the condition they were in when the board started trying to fix them. Just like most other things, if you let something get run down, it costs more to fix it. We still have many buildings that are beginning to look old and worn, how would you propose we fund repair of them. We can use your help. Thanks