Let’s Talk 8/24/19
The reasons why the Board of Directors, previously chaired by Tom Weiss, made removal of HSV CEO difficult were brought to light in a recent meeting.
Hot Springs Village Property Owners’ Association Board of Directors had a Let’s Talk at the DeSoto Clubhouse on Saturday, August 24, 2019. The Directors sitting on the panel were Dick Garrison, Nancy Luehring, and Tormey Campagna. The meeting began at 9:00 am and ended at approximately 11:01.
Even though HSVPOA Board and management are continually assuring us they want transparency and want to build trust with the property owners, it didn’t appear so at this Let’s Talk. As often happens anymore, the meeting was graced with a police presence. The CEO’s contract was being discussed and a seemingly frustrated Nancy Luehring ordered the cameras to be shut off when she appeared to become uncomfortable with the questions. This is what happened:
Steve Bylow inquired, “My question is, I’ve heard that there had been a change, that it took six of seven Board members to make a decision regarding the CEO. All I want to do is understand. One, is that true? And second, what was the logic behind that? What was the business logic as a Board?”
Luehring & Campagna stated reasons for this BOD decision
Tormey Campagna responded, “It does take six of the seven Board members to make a decision around the CEO. That’s only in one area and that’s if you wanted to remove the CEO. Other than what is specified in her contract”. Campagna further stated, “Whether you would do anything else for the contract as it comes for renewal, only takes a majority of the Board members to make that decision. That change that you talked I believe it was implemented in the last contract. The six of seven.”
Nancy Luehring admitted, “That was during when I was there. Not them.”
In further explanation, Campagna said that as he understood it, the reasoning behind this decision was to “let her have a two-year window so we can really see if the work she is doing is making progress. I believe that was part of the logic. At least that is what I was told by the Board chair.”
Luehring said that may have been only part of the logic. “The rest of the logic was is that we felt it should be difficult to remove the CEO.”
The audience asked, “WHY?”
Melinda Noble said that getting a simple majority was already difficult.
Giving more detail, Luehring said, “I’m not going to argue with you or defend her contract. I’m not. I was there. I was part of it. That’s the reasoning. But I’m not going to argue with you. We all agreed, in whole on the contract. There were individual parts of it that we did not agree completely on. But as far as the contract on renewing and extending it, yes, we all agreed on that. That’s it. I’m not saying any more.”
Luehring feels CEO is doing a good job
Luehring stated she felt the CEO was doing a good job. “People have to know every single thing that she does and possibly now, there is that opportunity. She runs a big corporation. This is over 500 employees, 26,000 acres. You’ve heard it all before. This is a big operation. We started with 76 divisions and five departments. It’s a big operation. It’s not Exxon. It’s not Motorola, but it is a big operation. It is not like anyplace else.”
Mary Szczepaniak asked if the operation were as big as the state of Arkansas or Texas.
Luehring answered, “It’s as big as Rhode Island.”
Szczepaniak said that wasn’t what she asked.
Luehring stated, “I don’t believe so.”
Szczepaniak explained that the governors of both states mentioned do not make anywhere near as close to what the CEO makes.
Cameras were shut off
Luehring threatened to leave the room and said to the cameraman, Larry Wilson, “Larry, cut the cameras.”
Wilson complied with Luehring’s request.
Written by Cheryl Dowden
Linda Van Scotter
08/27/2019 — 2:08 pm
This is not a big corporation. Why hasn’t everyone seen the contract? It has been out there for more than a month.
We must work towards that direction of removing CEO
Minn Daly
08/27/2019 — 2:40 pm
Thank you Cheryl for the info on Sat Meeting with 3 BOD members! Thank goodness for cell phones & audio on the whole meeting, it went to U-tube including after camera was cut off. I did not attend, I really believe that if you continually ask probing questions you are profiled by this BOD! Evidence of this is when Luhrling visualized people in sat audience that questioned her on contract she cut the filming of meeting did not go back to it until later in meeting. Why do you have to sign up for thes impromptu meetings & state your questions in advance? Gene Garner has a great prospective on CEO contract under Ar law and how it could be arbitrated. If all of the BOD approved let’s find out with arbitration. If the CEO can have BOD members arbitration why can’t those two suggest & demand that her contract be arbitrated? Let’s see who on the Legacy agreed totally with Weiss on Contract & terms of contract. This is a mess & quickly getting worse by the day! Who do you trust? I now have none for any legacy BOD member! It appears to me the CEO has the cards & she rules! Respectfully. MinnDaly
Kirk Denger
08/27/2019 — 10:48 pm
Thank you Cheryl and Joe for your diligence in reporting the uncensored facts concerning the members of HSV Association.
Mary Szczepaniak
08/28/2019 — 12:49 pm
Agree. I’ve been wondering if we can’t file a grievance against her.
Barbara Thompson
08/27/2019 — 3:13 pm
For one thing we need to make sure Ms Luehring is one of the first to be voted off or replaced!!!😡
Kirk Denger
08/27/2019 — 10:45 pm
At a very recent member meeting, Leuhring, Dixion, Erickson, and Medica were all unanimously voted to be removed from the board. Compagna was voted to be removed by the majority at the same meeting.
Mary Szczepaniak
08/28/2019 — 12:50 pm
Right behind Cindy Erikson
Melinda Noble
08/27/2019 — 3:47 pm
According to Nancy the reasoning was to give Lesley time to do the job. Of course they also made it impossible to fine her now that we know she can’t do the job. Not sure about the reasoning behind this. Nancy just kept defending Lesley with no answers to the question.
Vikki Powell
08/31/2019 — 8:34 am
Interesting comment that the CEO contract allows giving the CEO time to do the job. Yet, the CEO isn’t willing to give two new board members the same opportunity for them to do their job, as indicated with the grievance she recently filed against them.
Anonymous
08/27/2019 — 6:42 pm
Welcome to the USSR
Andy Kramek
08/27/2019 — 7:50 pm
I see that Nancy’s geography and math is as bad as everything else about her.
However you reckon it HSV is nothing like the answer she gave:
—- “Luehring answered, “It’s as big as Rhode Island.””
Actually 26,000 acres is just over 40 sq miles. The state of Rhode Island is just over 1,584 square miles – or if you prefer FORTY TIMES the size of HSV. To put it another way HSV is just 2.5% the size of Rhode Island.
In terms of population the difference is even more pronounced – Rhode Island has 1,057,315 people compared to HSV at around 14,000 which makes it over 75 times the size of HSV.
Now the Governor of Rhode Island (Gina Raimondo) makes $129,210. So since we appear to be comparing HSV to that state, shouldn’t the CEO salary be 2.5% of the Rhode Island Governor’s? That would seem only fair to me – comes out about $3,230 per annum!!!!
(For the record, Arkansas is 53,178 sq miles (1329 times the size of HSV) and Texas is 268,596 sq miles (6714 times the size of HSV)).
When are these people going to get real and admit that they have made a series of huge blunders. Once that happens, maybe they can begin to take corrective action and regain the trust of people – just don’t hold your breath while waiting for it to happen.
I wish you all the luck in the world but I fear you will need more than luck!
Kirk Denger
08/27/2019 — 10:40 pm
Thanks, Andy for your time-consuming research! Leuhring also lied at the July Board obstruction of justice meeting when she stated that the 12th article had been changed 52 times. The only by laws that have been changed that many times is within the last 5 years by the card-carrying communists of New Age Urbanism bobble-head Kool-Aid Boards. At that meeting, Leuhring, Compagna, Medica, Dixon, Erickson, and the CEO/CFO all had the intent to obstructed justice by covering up their unlawful previous behavior.
NittyGritty
08/28/2019 — 11:13 pm
Andy, Aren’t you in Arizona with the gangs, the water shortages, and the dust storms? Good luck to you, too!
Andy Kramek
08/29/2019 — 8:55 am
Arizona, yes, but I don’t know where you are talking about. We have plenty of water, no dust storms and no gangs where we live. I think you must be talking about Phoenix – which is over 150 miles from us.
Plus, I still own property in HSV and therefore have a vested interest in following what is going on there. The way things seem to be going now I seriously wonder if our house will be worth anything at all in a year’s time!
Moe
08/27/2019 — 7:55 pm
It’s over people. Over.
NittyGritty
08/28/2019 — 11:27 pm
Moe, The past is ALWAYS over, anywhere you go.
“There’s nowhere better to be than HSV!”
(Hey, … that could be our new marketing slogan.)
Minn Daly
08/27/2019 — 9:33 pm
Mr Kramer, thank you so much for pointing out the intelligence level that one BOD member actually stated At Saturday meeting! Comparing HSV to Rhode Island. It is disturbing that the other two BOD members in attendance did not attempt to correct her statements. (I know that both are very intelligent ) Could it be that they are aware of the legacy BOD/CEO lack of useing real facts instead. Create as they go? These facts should scare all, this is the way the BOD is doing our finances, like the 500,000 spent as well as pool exp & now the Balboa Club & course costs. This simply amazes me! Thank you for your stats, it is an eye opener. Respectfully, Minn Daly
Anonymous
08/27/2019 — 9:57 pm
I really think many are comparing apples to oranges. You can’t compare Lesley Nalley”s compensation to any state governor. A state governor virtually lives a tax-funded lifestyle. The governor gets a home, automobile and related expenses, medical insurance, food, utilities, club memberships, all paid for by citizen tax payers. Their entertaining expenses are all covered by taxes. Any Governor is compensated much more than Lesley is.
Andy Kramek
08/28/2019 — 9:43 am
Well really Mr/Ms Anonymous. You choose not to disclose who you are and make ridiculous statements which deserve little more than to be ignored. However, I will say this:
It seems that Ms Nalley’s compensation package pretty much fits your description of a Governor’s with the possible exception of home, food and automobile. – though of course we don’t know the exact details of that either! Certainly she gets expenses for vehicle use and probably at the standard IRS rate (currently $0.58 per mile).
Everything else you mention appears to be within the CEO’s “package” which, in addition carries a 30% “bonus” entitlement (which is automatic since it depends on ‘achievements’ that are not measurable by any objective standard). Governor’s don’t get bonuses.
I have to say that with a $300k+ salary package, plus expenses, that the CEO has a pretty good lifestyle that certainly is comparable to a Governor’s – funded exclusively by the property owners of HSV!
Melinda Noble
08/28/2019 — 11:32 am
Lesley gets a car allowance, she gets insurance, she gets club memberships and often eats out on our dime. As for housing her salary is $100,000+ than many state governors. A $100,000 will buy a lot of house every year and at the end of your contract she will own the house, a governor walks out the door with no home or equity in the mansion.
Frank Shears aka Bubba
08/27/2019 — 10:07 pm
First, thank you Cheryl for the fantastic job you and Joe do attending and recording all these meetings. It makes me wonder if you ever take any time off to rest. Your efforts are greatly appreciated by all.
Second, the POA is a corporation with around 500 employees. That’s a pretty good sized company. It’s not the size of a fortune-500 company, no. But, it’s big enough that it’s not small potatoes either. We don’t want someone running our POA operations that has no experience and only makes $60K per year. We want the best that we can get for an appropriate salary.
Third, I won’t say how much a CEO should make, because I don’t believe we need a CEO. What we NEED is a really good General Manager and I for one, am willing to pay a good GM an appropriate salary. Appropriate for the position, the geographic area and the required experience. You won’t find that required experience for under $100K. But, you don’t need to over pay for the position either.
Fourth, the contract clause about requiring 6 out of the 7 votes of the BoD is ONLY to terminate the CEO’s employment by the POA. Then the CEO still has the option of refusing and making a fuss over whatever buyouts are included in the contract. That’s when the fun with lawyers and debating with the POA BoD begins again.
And finally, I believe that when the CEO’s contract comes up for renewal the BoD can vote NOT to renew it by a 4 to 3 vote. Then the contract has one more year before it is completed and not renewed. That is the way this contract was written in the beginning (except for the 6 out of 7 part).
The contract comes up for renewal in March each year. If it is renewed it is good for another 2 years. If it is not renewed it is only good for one more year.
I hope this helps everybody understand why this next election is so terribly important.
Anonymous
08/28/2019 — 8:04 am
I heard at Monday’s meeting the contract comes up in December…if not challenged it is renewed automatic…and please….Nancy and a Buddy need to go…they are rude and too defensive…
Kirk Denger
08/27/2019 — 10:23 pm
“This Agreement and all its terms and conditions will automatically renew with the same terms, if not otherwise amended or terminated accordingly by written notice.” Bubba, I hope this helps you understand that we have a perpetual dictatorship. No next election can change this.
Max
08/28/2019 — 4:46 am
Agreed. If I had a dime for every time someone said wait for the next election I would have as much money as the “CEO”!
The next election, much like comments posted here, will solve NOTHING.
NOTHING do you hear me?
Anonymous
08/28/2019 — 7:07 am
Go bankrupt. Remove gates. Reorganize. New taxes. New GM.
Max
08/28/2019 — 7:09 am
Sadly, we are already bankrupt…in more ways than one.
The whole place has gone mad….and it is very sad…this once was a vibrant community.
Not anymore.
Wacko CEO and wacko board = big trouble.
Melinda Noble
08/28/2019 — 9:14 am
Buddy and Nancy just spout the party line, when that doesn’t work they don’t know what to say. At the BOD meeting Buddy pointed to a cash surplus and how it could be attributed to Lesley. He completely overlooked the fact that the 100% increase of our assessment created this and Lesley had nothing to do with it. But you know this information was spoon fed to him by Lesley.
Anonymous
08/28/2019 — 10:52 am
Buddy and Nancy are clueless! It’s just so obvious! Comparing Rhode Island to HSV! Give me a break! Even an idiot would be smart enough NOT to blurt out such false factoids like that thinking that no one would check on their correctness! WOW! We Property Owners in HSV have surely gotten the shaft with these incompetent self-righteous, self-serving legacy BOD members. And turncoat Tormey – well – didn’t he do a good job of selling us all down the river!
Lesley must go!
The legacy BOD members and turncoat Tormey must go!
There will be no peace and harmony in the Village until we have leaders that will listen and act upon the wishes of Property Owners.
Two choices my friends!
1) Organize, litigate and drive these traitors out of office.
2) Vote them out over the next 2-3 years.
I prefer number 1 !
Joe
08/28/2019 — 10:55 am
If you read her contract she gets a car supplement. This anonymous person is a fool.
Richard
08/28/2019 — 11:41 am
Richard Haack- My wife & I are angry- but we are not going to move or just give-in. We are angry that we voted/ vetoed the change in covenants and CMP and the Leslie has ignored the POA members vote. This is a corporation (not a Municipality) governed by a 7- Member Board of Directors. They have speed dial with the many Departments in the Village (including Leslie Nalley, General Manager). Leslie is not the Chief Executive Officer. She is like a Magistrate or Village Manager. Unfortunately, the BOD has forgotten that they are responsible for this $32m Corporation (not Leslie).
The various department heads should report to the BOD- not to Leslie; she is responsible for following their governance. So the Police, Fire, Club Services, Lake, Public Works, Public Utilities, Buildings & Grounds, ACC, Permits & inspections, Fleet Manager, Public Relations, Controller, POA Membership, HR, Internet & Network, Compliance Departments should report to the BOD- who is in-charge and responsible, Not Leslie. The BOD approves their paycheck- Not Leslie.
If we cannot “FIRE” the CEO- then we have to live with her. We should put her on Notice immediately- so that she understands that she has failed the POA and ignored a legal Village vote. Lets have the Board get the control back to the Board and not to a dictator.
This is a large Corporation- governed by the BOD, not someone that spend a half a million dollars on a Florida scheme that has been rejected by the membership.
Ralph
08/28/2019 — 2:39 pm
The board is afraid to do anything but toe the company line.
They are weak, dishonest, ineffective, and so out of their league as to be a complete joke.
Utter disaster.
Linda Anderson
08/28/2019 — 4:42 pm
This ” Let’s talk ” meeting discussed a couple of very important issues.
1ST was that HSV’s financial stability has been the most talked about issue for several years and yet it has become a thorn in in the communities side causing great concern.
Diana Poldawiltz wanted a Finance Committee that was quickly sweep under the rug. Dick Garrison wanted a month to month report which has been side tracked. The answer was the Committee’s will address this. WHY???????????
2nd was the glaring BOD’s approval of the termination clauses in the CEO’s contract.
( 1. ) Requires a BOD vote of 6 Board members to remove.
( 2. ) Automatic renewal unless amended which must be signed by Chair & CEO.
( This means CEO’s approval ).
( 3. ) Stipulates that any Board member who Abstains ( refuses to vote ) is counted “against” termination.
This removes the BOD’s fiduciary responsibility to prevent HSV from financial ruin. It prevents future Boards from terminating the agreement. It places the CEO above the BOD’s control. It places the property owners in great harm by making them financially responsible for incurred debt of the community.
The question becomes ” Does this BOD know how to govern or has reason to ignore?? Seems like someone on the previous and present BOD is too close to the CEO.
If this BOARD is dedicated to governing correctly, then they should discuss these issues , correct the misunderstandings of the financial situation and remove this illegal BOD Vote and termination clauses from the termination agreement. It’s time to correct the problems and bring back the transparency that was advocated and promised.
Kirk Denger
08/31/2019 — 9:37 pm
The only way to remove the Ceo is to remove and replace five unlawful Board of directors with a special membership meeting called 30 days after all members have been notified. A quorum of the members can vote to remove and replace the unlawful directors, the new directors will terminate the CEO instantly. This can all happen within 30 days.
George
09/13/2019 — 3:28 am
Kirk, your note is very encouraging to me. How would you go about organizing a “special membership meeting”?
anonymous
09/02/2019 — 9:27 pm
I hate anonymous posts however , I must post one more …….. are we sure that background checks were run on this CEO and her growing band of people who are in our cookie jar?? With as insane as this has become I would not doubt that this may have been overlooked. We need to verify if it was done or not, and if not, it must be done. We are being made fools of……….and it could be a way to void her/their contracts.
Richard Haack
09/03/2019 — 10:23 am
Richard Haack- David Twiggs changed the title from General Manager to CEO and brought Leslie in as his CFO- then had the BOD approve her before his departure. Somehow- he still has a paycheck the year after he left.
Vicki Husted
01/25/2020 — 2:39 am
Property Owners: Tell Current BOD – Do not extend Nalley’s contract!!
I just signed the petition “Hot Spring Village Property Owners: Do not extend Nalley contract” and am urging others who share this opinion to add their names.
Our goal is to reach 100 signatures and we need more support. You can read more and sign the petition here:
http://chng.it/sgpkBRNw5s
Have your Lot/Block/Addition ready and put it in the comments, which limits signatures to Property Owners Edited to read Addition, not Assessment