Three Different Votes Required to Finalize New Trash Truck Deal
The new HSVPOA sanitation system is a not-so-well-thought-out and hurried-up decision, championed by the Chair and made quickly before the new board was seated.
This issue was voted on originally at the public regular board meeting on February 17, 2021. Then the details were changed two times and two additional votes were taken in private email votes, all occurring before the new board was seated. The original costs increased two different times, without property owner input or knowledge.
Two votes were special email votes; all three were pushed as being “time-sensitive” or we would lose the “great” financing.
First Vote
The $1.7 million original vote passed 4-1.
Second Vote
When the staff rushed to the bank (after the first vote), they found out that the real cost would be $2.13 million on a 2-year loan. The reason given for this large increase was that the original $1.7 million did not include interest and also that the 1.9% original interest rate rose to 2.3%. The BOD again voted for the increase, 4-1.
Third Vote
Then the rise in cost from the original public proposal continued after the staff borrowed money to purchase the fleet. Staff determined the original purchase price was $35,000 higher, so another special email vote was taken to approve the increase and passed, 4-1.
It is Anticipated to Still Be Paying On Loan for Lease of Worn Out Trucks
By the way, two years of loan payments will not pay for the total cost of the lease and what remains will have to be refinanced two years from now, along with another new fleet lease, because they expect the trucks to be worn out by then.
It would be at least ten times cheaper to have a Property Owner vote @ the cost of $43,000 to approve a special assessment to pay for this with cash. The Property Owners could decide if they wanted to be burdened with needless debt or not and if the new sanitation system is a want or a need.
By Kirk Denger, Former HSVPOA Board Member, May 30, 2021
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Linda Anderson
06/01/2021 — 4:59 pm
Thank You KIRK for bringing this understanding of this financial fiasco due to unanswered questions about the costs or future financial benefits. There was no comparison between buying the garbage trucks with a negotiated extended warranty program and this huge 2 yr. lease/loan option. Then there is the payoff $$$ of the older garbage trucks that are apparently in good operating condition with no thought of their discarded value when sold. This decision will cost the Village about 1 Mil plus a year. Interest rates are expected to be raised which means that this kind of arrangement will be brought to a halt and the lease warrenties will become null and void. This was certainly a debt that was not needed.
We really needed the money for our roads.
Lloyd Sherman
06/02/2021 — 1:00 pm
And here we go spending money on yet something tagged as infrastructure and of course it needed to be rushed. How many times is that story going to actually work? Apparently at least one more! We have money in the bank because we were cautious last year due to the COVID issue. We received $3.1 million of government money we don’t know as of now whether it will be a grant or a loan. While that money was used to pay salaries, etc., we didn’t have to spend our own assessments, but it is not free money. We should undertake some of the infrastructure items we delayed last year, but taking on huge debt for yet another potential debacle is just irresponsible. Did we consider outsourcing this function to people who are actually in the business? I doubt it but you can’t get an answer. After all, The Townhome Association contracts out the pickup of their trash, so what would it cost us to do the same? If someone on the board didn’t ask that question, then shame on them. And why did this board do exactly what they have been critical of others boards in the past? The passed this during a lame duck session and before the new members were seated. This is SOP for how projects have been introduced in the past. Like I keep say, we keep doing things the same way and expect a difference result. This project should be abandoned before it is too late!
Bob Mollerberg
06/02/2021 — 2:08 pm
Lloyd,
I agree that this project should be abandoned. Tom Blakeman has also raised some questions that need to be answered. So…..who needs to answer these concerns, & who can terminate this fiasco before it goes any further? Let’s have some names & some accountability please if it turns out that due diligence was not performed on this endeavor.
Sue Posner
06/03/2021 — 11:02 am
Prior board person claims HSV bought 3 new trucks 2 years ago. So which is it a lease or purchase and what do they need more for and who gave power of attorney for loans. Fiduciary is not power of attorney. There’s a BIG lie here! No truck costs a million highest biggest one costs @$300,000. We don’t need the biggest one out there. You have only one day pick up as it is. You only need non CDL smaller capacity rear loader far less to buy. Even certain side loaders don’t require special trash containers. Owners need to see for themselves, inquire and see the things being bought. Who is making this decision and where are they looking and what are the offers and from whom? Seems we have money to replace since there was 3mil over from last year. Sanitation truck as they are needed and new one maintained can last 10 years. No your roads are not bad only in one small area that I found and that doesn’t require a lot, there is no deferred maintenance lakes dredged, most culverts replaced, building fine except Balboa club which frankly isn’t even needed. Owners need to take a drive tour of this place see for themselves. About time we have it so over a certain amount owners must vote for those expenditures. Where’s the proof, the pictures? https://www.heil.com/products/rear-loaders/mini-rear-loader
Sue Posner
06/03/2021 — 11:52 am
Owners need to know what trucks are to be replaced, when were last ones bought. Most garbage trucks last 10 years. I see article says lease, why lease anything. If a truck is in need of replacing, the biggest new ones out there cost $300,000. We don’t need the biggest out there. Cubic foot ones we need for once a week pick up aren’t big ones and we can purchased non CDL trucks to avoid a Federal Ecise tax. Has any owner seen the mileage, pictures of the number of the trucks to be replaced? Do we need side loaders, what size and built are being considered. No don’t use Waste Management outside contract they are the biggest crooks out there in waste management. There’s great website on Heil sanitation trucks,(office in Chattanooga, factory in Alabama) that owners can educate themselves on the different types. Not all side loaders need special trash cans either. Even rear loaders now have a back lift step that only one worker besides the driver can roll onto and not pick up a can, allowing the worker to ride in the cab of truck vs on the back. Owners need to research and owners need no vague lie, but verifiable proof of the need. Oh and there appears that last board actually had purchased a couple new trucks, whether they did by loan or lease seems questionable too. Given there was additional revenue, see no reason for rushed decisions. Owners need to take a drive and check out for themselves conditions of stuff in here. Please do yourselves a favor and look in here observe the so called “infrastructure” here, ask yourselves is that in good or desperate shape. Rely on your own eyes, your research into proposed project, ask to see proof of what is needed. Maybe it is time that owners get to vote on expenditures over a certain amount and not let 4 people decide, no hear say, proof, it is your money