By Andy Kramek, July 13, 2021
The full phrase, from which I took the title for this article, is of course,
“Plus ça change, plus c’est la même chose”
Jean-Baptiste Alphonse Karr (1849)
In case French speakers are a little thin on the ground in HSV, that translates as “The more things change, the more they stay the same” – which seems to fit somehow.
In a recent post on the Property Owners Group FaceBook page, Lloyd Sherman said this (reposted with permission from Mr. Sherman):
THE CMP IS BACK – While I hope I am wrong about this, but does anyone else notice that we seem to be back at exactly the same point we were when the CMP was being implemented? Staff continues to make decisions about what the Village needs (or wants) without sufficient property owner input. We are once again discussing “suspension” strategy. We just added over 2,000 more lots to our inventory of over 3,500. Anyone really think that was strategic more than it was a ploy to ensure there was a second vote to implement the upcoming assessment increase? NOTHING has changed in the way the POA does business, so how can you really expect a change going forward?
Lloyd Sherman, July 11, 2021
I am very much afraid that he is absolutely correct!
Many people have asked me why we moved our primary residence out of the Village in 2019. There was no single reason but our health was certainly a factor. Although we had lived in the Village for four years it was increasingly clear that the combination of high humidity and the forest environment (i.e. insects, mold and pollen) were having a negative impact on our general health and made it clear that we would not be able to stay in the longer term. However, there was no urgency and we could certainly have stayed for a few more years without any real issue. So why did we go when we did?
The short answer is that we recognized that, whether by accident or design, the POA had ceased to be concerned with managing the Village on behalf of the property owners and had, instead, become a self-sustaining bureaucracy whose only interest was in maintaining its own financial interest, power and control. The Board existed merely to rubber-stamp whatever it was that the “Staff” wanted. So just who comprised this mysterious “Staff”?
Well, it was a few senior employees led, and in some cases appointed, by the then “CEO”, that formed a small and select group of insiders. Generally, their qualifications were, at best, questionable for the positions they held and the authority that they wielded. Of course, they also received significantly better salaries and benefits than were justified in a rural non-profit corporation like the POA. The control of this group of cronies over the daily functions and operations of the POA was total and absolute and, regrettably, they were supported by a relatively small, but vociferous, group of residents.
Their manifesto and handbook, the so-called Comprehensive Master Plan (CMP), was a New Urbanist vision document that cost the Village half a million dollars. It outlined a plan, without specifying how it could ever be implemented, that was totally inappropriate for a heavily forested community of about 14,000 people spread over 26,000 acres in the foothills of the Ozarks. However, any suggestion that it was not equivalent to holy writ was treated with contempt and ridicule. Enormous amounts of POA effort, time (and money) went into attending New Urbanist conferences and developing implementation plans for this monstrosity, each more absurd and impractical than the last.
Despite the campaign pledges of the, then prospective, Board candidates (the so-called LTD ticket), to force major change on the POA it was perfectly clear that the upper echelons of the POA had no interest in either listening to the property owners or accepting change. Indeed things were, the way we saw it, only going to deteriorate further irrespective of who was on the Board. Even if the “CEO” could be deposed (and she subsequently was, albeit at considerable financial cost) it was clear that without a complete restructuring of the POA the staff-driven steamroller would continue on its merry way unabated.
We regretfully decided that we had seen the Village at its best and that it was not going to get any better in the immediate future. So we took the plunge, sold our main house and moved out to a place with a warmer, dryer, climate and no POA. However, we still have some property, and hence an interest, in HSV. From what we have seen, from this distance, it certainly looks as if we called it correctly! The last two years have seen an increasingly dysfunctional and ineffective Board of Directors who, having got rid of the CEO, seem unable to agree even among themselves what their role should be. So they have simply allowed the POA staff to continue to run things however they want and gone along with it.
Unfortunately, despite a couple of minor changes, the individuals who comprised the cabal that formed under the aegis of the last full-time General Manager (Mr T*****), and his “CEO” successor (Ms N*****), are still there and still in control. I would now include the two-time “interim GM” as an integral part of that group. The consequence is, of course, that nothing of any significance has changed. Even worse, there is no sign that any major change will occur in the near future.
We really do wish the very best to all our friends in HSV and want nothing but the brightest and best future for the Village. However, while we wish we could be optimistic, given the recent history, we really cannot be anything but pessimistic. That is, unless a majority of property owners in general, and residents in particular, get together and agree on exactly what the future of the Village should be and take the necessary steps to ensure that the correct people are put into positions – both on the Board and within the POA – to make it happen.
How likely is that? Well it depends on getting property owners involved, learning from the past, agreeing on the future and, most importantly, on cleaning house at the POA. That means bringing in people with the necessary background and experience to restore its primary function – managing the Village for, and on behalf of, the property owners.
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Scot Decker
07/13/2021 — 10:24 am
Well said
Barry Juaire
07/13/2021 — 11:34 am
VERY ACCURATE !!
Gene Garner
07/14/2021 — 1:32 pm
Andy, of course you’re right in your appraisal of the BOD, but where’s the solution to fix our biggest problem? We’ve heard the calls to elect well qualified, experienced and knowledgeable candidates to the Board and what have we seen? A procession of well meaning neophytes that soon prove they’re incapable of doing the job we need. Maybe they need to be told what they should be doing.
I believe at this point in time we could use some hard and fast rules on what the BOD can and can’t do. In other words I believe the BOD has too much freedom to make bad decisions and not enough guide lines to take care of the Village. If we can channel the BOD efforts to the repair & maintenance of our infrastructure and limit all new contracts and construction to a vote of the Property Owners, that would be a start.
How do we do the above? The Declaration can’t be amended until April 20, 2027 and the BOD won’t voluntarily limit their ability to waste our money– so what do we have left to rein in the Board? There is the “AR Nonprofit Corporation Act of 1993” that can be adopted at any time if we have enough Property Owner Votes. There are provisions in the Act that allows Property Owners to remove a Director (or all Directors) from the Board if we’re unhappy with their performance. There’s also a subsection that allows Property Owners to have a vote on the Articles of Incorporation and there are standards for the Directors conduct.
Until the BOD has clear ground rules regulating their duties they will continue to waste our money on CMPs, Luxury RV Parks, Troon contracts and other assorted money losing schemes.—Gene
Andy Kramek
07/14/2021 — 3:29 pm
Gene, I suspect you may be right that adoption of the “AR Nonprofit Corporation Act of 1993” could give property owners a measure of control over the actions of the Board that is currently conspicuously lacking. However, I am not so sure that even if this were to happen, that it would be a solution to what ails the Village. In my mind there are two separate and unrelated issues.
The first, and perhaps the biggest, issue is that of getting agreement, among a significant majority of property owners, of what the Village should be and how it should get from here to there. Today there are almost as many versions of that vision as there are people who are openly interested in village affairs. Unfortunately those who are interested comprise a small minority of the population, the rest being content to either complain loudly when things go wrong, or are simply indifferent to the whole darn business and just want to be left alone.
The second issue is, of course, the role of the POA in general and the Board of Directors in particular. I believe that the first thing that the BOD needs to do is reach a consensus about what their role really is. However, without a clear vision of the agreed direction, and hence the support of the property owners, it is hard to see how the BoD can ever be anything other than irrelevant in any practical sense. Furthermore, unless we know where we are going cannot hope to find people who can help us get there – and we have seen plenty of examples of this particular failure over the past three or four years, including one abortive attempt at hiring a new GM! Once we have a clear direction, we could determine the qualifications needed in the people who would implement it. That way we might even get a BoD and GM who could agree on their respective roles and work together for the good of the village as a whole.
Gene Garner
07/15/2021 — 9:41 am
Andy, while I accept your description of our two main problems I believe all Villagers can agree the POA’s first duty (as noted on page 1 of the Declaration) is, “maintaining of the water system and the sewer system as well as maintaining and administering the other community properties and facilities and administering and enforcing the covenants and restrictions…”
In my opinion we should complete all the repairs and maintenance of our facilities, streets and common properties before we start considering where we want to go. The CMP is a good example of planning for tomorrow but forgetting about today. How many culverts could have been repaired with the $500k+ that was wasted on the CMP? Our problems are here today and if we don’t get them fixed, there may not be a tomorrow.—Gene
Andy Kramek
07/15/2021 — 11:50 am
Gene, I can’t disagree with you there. The first (and I might even go as far as to say “only”) duty of the POA is to ensure that the systems and infrastructure of the Village are maintained in good working order. Their biggest failure is that, for many years, they have been chasing other priorities (your description as “empire-building” is most appropriate). The cause of that failure has to be laid squarely at the feet of successive Boards who have failed to rein in the excesses of the “Staff”. I am not sure that, at this point in time, it is even fixable.
Lloyd E Sherman
07/14/2021 — 8:33 pm
Without a major shift in the direction of who actually drives this POA, there will be nothing but but what has been seen since in the last 10-15 years. The Board either doesn’t get it, or they don’t want to get it. Staff gets everything they want. And why is it that most items presented for approval need done immediately? Why does staff get better deals on the amenities that the actual property owners do? Once again I will dive into the deep end and say that until that cultural shift happens; nothing changes. I will also note, this is not the fault of staff, but rather of the board who has failed to take the leadership role and make this cultural change happen. Again, either because they don’t want to or don’t know how.
https://hotspringsvillagepeople.com/culture-shift-hot-springs-village-part-2/
Andy Kramek
07/15/2021 — 11:51 am
Concur!