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Lloyd Sherman on HSVPOA CMP

Lloyd Sherman takes a few minutes to share his thoughts about the Hot Springs Village Property Owner’s Association Comprehensive Master Plan. What follows is a transcript and at the bottom of the transcript, there is a link to the video. The CMP quotes are in blue.

“Good afternoon, fellow Property Owners. This is Lloyd Sherman. I’m a candidate for the 2020 HSVPOA Board of Directors and today I’d like to discuss a topic. This will probably be one of several videos that I will try and put out between now and the time the ballots go out.”

“Today I want to talk a little bit about the Comprehensive Master Plan – CMP. I was recently at an Advisory Committee Meeting of the CMP and one of the members asked me, basically, what my issues were with the CMP.”

Hot Springs Village Voice Announces CMPAC review of CMP
12/24/19 Hot Springs Village Voice article – CMP Advisory Committee begins review of CMP (Edited to add on July 13, 2021 -When this article was first published, this was a link to the Hot Springs Village Voice, but the link no longer works because the article has been removed from the internet.)

“We were on a break and there wasn’t going to be enough time for me to discuss my issues with the CMP so that kind of prompted me to want to do this video and give you my thoughts and my insight into what I am thinking relative to the CMP, itself.”

“I put out an article, probably several months ago now, discussing my concern with the CMP being an ideology, more than the details that are packed into the CMP.”

“It’s been almost two years since we’ve adopted the CMP and it’s been in the evolution mode a lot longer than that. Now the CMP Advisory Committee is being heard to say that it is a 30-year plan, instead of a 20-year plan.”

“Thirty years from now, most of us are not going to be too concerned about what’s going on in the Village, quite frankly. So, my concern is that we do something in the immediate future that helps the Village and I don’t see that being accomplished with the CMP.”

“The underlying problem, I think, with the CMP is that it represents a major shift in the organization. We have become a development organization and not a maintenance organization, which is what the POA should be.”

“We’re going to have more issues like we had with the Balboa Golf Course this last year. If we can’t figure out how to fund these projects, going forward, we were told when we couldn’t afford to do the Balboa Club that we have several other clubs that are going to come in behind that, to have the same problem.”

“My issue again, the detail in the CMP has to do with no substantial increase in revenues. Our salary expense continues to grow. Our infrastructure and repairs seem to continue to be a problem and aren’t getting taken care of at the rate that they need to be. Quite frankly, we are falling into a state of disrepair.”

“So, with that, I’m going to discuss a little bit, and for those of you who were here in 2010, the Board of Directors had a Strategic Plan that they put out in 2010. Very comprehensive document. This was the size of that document.” [Lloyd holds up 2010 Strategic Plan.]

“This document was signed by all of the Members of the Board of Directors. It had tasks and implementation schedules in it, down to the level of being assigned to what the General Manager and the CFO needed to do to accomplish those tasks. Very detailed. This is what a strategic plan is about. [Lloyd indicates the 2010 Strategic Plan.] This is NOT, and I repeat, NOT a strategic plan. [Lloyd indicates the CMP.] Three hundred and sixty-two pages of boilerplate information that has observations, recommendations.”

“We just last year moved this document in under a governing document. Not sure how. Not sure why. How can you have a governing document that is a work in process?”

“So, let’s discuss the first hundred pages of the CMP and talk about some of the subjects in the first hundred pages.”

“Page 10, it says:”

  • ‘Master plan strategies like the recommendations you will find in this plan come from the residents that live in the community.’

“Well, I have to tell you. That is news to me because this plan was generated before the residents got a chance to look at it through the Charettes. So, problem number one.”

Page 12:

  • ‘The POA Board of Directors realizes the need for a comprehensive master plan to establish recommendations and priorities on methods to generate revenue while addressing the immediate maintenance needs is now greater than ever.’

“Well, we’re two years later and we still have the same problems and they’re getting bigger. There still are no plans for revenue generation. The only plans that we had this last year for revenue generation were increases in fees and subsidies.”

“I’d also like to point out that this document was done by the Board of Directors [2010 Strategic Plan].”

“This document [Comprehensive Master Plan] was done by all of these people, ten of which are POA employees. That’s not a Board of Directors’ document.”

“This [2010 Strategic Plan] is a Board of Directors’ document.”

“To continue on, and bear with me on this, but I think it is important that we take the time to go through this because I know not everyone wants to read this much of the CMP. I want to point out why I believe that it has changed the overall direction and emphasis of the POA staff and is distracting them from the maintenance functions that need to be done.”

“I am not saying we are spending any money on other things, but we’re not focused on what needs to be focused on.”

“It says on page 13:”

  • ‘The purpose of the Comprehensive Master Plan is to establish a basis for coordinating physical development decisions in order to assist in guiding the communities’ planning efforts.’ Please note the word, ‘development’.

“Page twenty [20]:”

  • ‘Successful master plans are those which are community-driven.’

“I don’t think we are being really paid attention to, so I don’t know how that could be accurate.”

  • ‘Planning process. The people that the plan most affect must guide the direction of any good comprehensive plan.’

“I agree with that one hundred percent. Is that being done? Don’t think so.”

Page 24:

  • ‘If you are a family looking to locate to Hot Springs Village or a new retiree wishing to buy a home,’ “it goes on to say we have plenty of single-family homes.” ‘What if you want to live in a walkable neighborhood or if you prefer a smaller house with a nearby open space?’ “That is slang for pocket neighborhoods.”

“Page 36:”

  • ‘Strategically a number of key land acquisitions in the coming year will help the long-term vision.’

“That one I really don’t understand because we have plenty of land. We don’t need anymore so why would we be strategically looking for key land acquisitions?”

  • “Later on in that same page, thirty-six [36], it says,” ‘long-term strategy establishes a few larger and active centers with amenities and activities and a distributed network of more local and small-scale amenities at neighborhood centers’.
  • ‘Adding lodging to the town center should help increase’ “as well.”

“Now, I am going to continue to bring out the town center because that is what this document, this document right here, focuses on. Later we will see that all of the objectives on how they are going increase revenues center around a town center and/or pocket neighborhoods, neither of which can be done without the approval of CCI and the easement issue being taken care of, which they tried to do through the Declarations.”

“Page 71:”

  • ‘Deferred infrastructure maintenance, for example, is a significant issue that must be addressed over the long-term.’

“What about the short-term? Did we need this document to tell us that we needed to take care of our infrastructure? We can see that.”

“Page 72:”

“Here is where the Declarations came into play on the recommendations:”

  • ‘Modify Article 4, Section 1 on utility easements.’

“So instead of trying to deal with the program ahead of time and figuring out what to do before we spend $500,000 on this, knowing there was an easement issue, they decided to change that process through the Declarations and it failed. Again, no transparency.”

“[Page] 74:”

  • ‘Establish an amenity membership category and fee structure.’
  • ‘Transfer ownership, where willing, of membership lots for POA in exchange for amenity memberships.’
  • ‘Study the revenue impact of expanding amenity memberships to non-property owners.’

“This is the kind of material that is in this document, that are being considered today and people are working on.”

“Page 78:”

  • ‘Integrate the occasional and sparing use of Special Assessments and Surcharges…’
  • ‘Establish a communications strategy for special assessments.’

“They are coming. We just don’t know when or how.”

“Page 79:”

  • ‘Consider assessment fee-based and other incentives to encourage lot development and build-out.’

“Well, again, here we go. The POA is involved in developing. We had Village Homes and Land’s total failure. We’ve have the Siega Project, which is always good to have new rooftops. But again the POA acting as a developer, instead of leaving it to the people that are actually paid to do this without being paid for with your assessment dollars.”

“Page 80:”

  • ‘Recommendations on budget and finance: Development of mixed-use projects, resort hotels, and meeting venues.’

“This kind of language is scattered throughout this document and this is what is taking the attention away from the infrastructure issues and onto the development issues and it needs to stop.”

“Further down in this document, on page 80, it talks about:”

  • ‘Land as collateral in joint venture partnerships with master developers.’

“So now we are going to go do something like Savannah Lakes did and get in partnership with somebody to run a hotel. What could possibly go wrong with that?”

“Page 81:”

  • ‘Golf resort and conference facility.’
  • ‘Mixed-use developers.’
  • ‘As noted previously, the use of Special Assessments is also recommended.’

“Page 84:”

  • ‘Enable and encourage development of a town center.’
  • ‘Encourage development of new or more diverse housing products.’

“That could be dangerous.”

  • ‘Encourage higher density housing development.’

“Page 89 (just a couple of quick ones):”

  • ‘The town center and other new development concepts are proposed as part of this plan.’

“In the first hundred pages…here’s another one on page 91:”

  • ‘Establish a town center.’

“I am all for strategic planning. I am not for planning something 30 years from now, which cannot be achieved in a document like this. This is unwieldy. It’s not controllable. The CMP Advisory Committee has done nothing that I’m aware of. They haven’t reported to the Board. The Board hasn’t been involved in any of the discussions on where the CMP is at this point. They haven’t given them a briefing.”

“What has the CMP done for us the last two years, other than drain our resources away from being a maintenance organization?”

“As I said, I am all for strategy plans – one, three, and five-year strategy plans, with an eye on the future. You can’t take your eye off of the future. But you have to focus on today and what can be done and what’s realistic. This is not realistic. [CMP] This was realistic. [2010 Strategic Plan]”

“I intend to introduce concepts like this back into the Board and into the working sessions if I am elected.”

“I am asking for your support and your vote in this next election. I also want to mention that I am also endorsing Dick Garrison and Tucker Omohundro as the other two candidates to take the seats with me. They are like-minded and I believe will be assets to our next Board. Thank you and I will see you on my next video.”

Click here to watch the video

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