HSVPOA Board Discussion Session 12-04-24

The Hot Springs Village POA Board of Directors convened on Wednesday, December 4, 2024, for a Discussion Session. Please keep in mind as this was a Discussion Session, no votes were taken. Look for these items to be voted on at the next Regular Board Meeting on Wednesday, December 18, but things remain fluid.

The items proposed and discussed were a golf cart lease contract for Isabella, changes in the Rental Registration Program, hybrid BOD election service options, the 2025 Budget and Fee Schedule (with corrections to the Fee Schedule), Bylaw edits (mostly housekeeping, but one paragraph regarding Board authority over staff was discussed), and an update on the marketing RFP process.

Review of Golf Cart Lease Contract for Isabella by Golf Director Tom Heffer

Isabella currently has 105 Club Car Carts, with the lease set to expire in July 2025. To capitalize on aggressive pricing from cart manufacturers in the first quarter of 2025, we initiated a bidding process in March to replace the Isabella Fleet. Projections indicate that cart prices in the second quarter of 2025 will rise by $300 to $400 per cart, leading to a $40,000 increase over 60 months. To manage costs while meeting demand, we bid for 102 carts instead of 105.

The Golf Department proposes to accept the Clear Creek (Club Car) bid to lease 102 carts for 60 months at $348,840. This bid was the lowest. We already have parts in inventory and service for the other seven fleets with Clear Creek (Club Car). Additionally, Clear Creek has agreed to pay off the remaining months of our old lease with no further payments due. We would take delivery in March 2025.

Bid results

• Yamaha – Purchase – $5,109/cart – Total = $521,118/ Lease – $63.22/cart/month – $386,906.40 – Total 60 months.

• Club Car – Purchase -$5,350/cart- Total = $545,700/ Lease – $57.00/cart/month – $348,840 – Total 60 months.

• EZ-Go – Purchase – $5,395/cart – Total = $550,290/ Lease – $69.98/cart/month – $431,769 – Total 60 months.

Review Proposal for Hybrid Election Services for 2025 Board of Directors Election – Julie White, Administrative Assistant to the General Manager

Hot Springs Village Property Owners Association requires a third-party service for Hybrid (paper and electronic) voting for its election, and the 2025 Board election is no exception. The HSVPOA has used T.I.E., “The Inspectors of Election,” for several years without going out for a bid to other providers of this service.

In addition to T.I.E., Ms. White contacted two additional hybrid election services for pricing LUMI and Votegrity. The quotes received are as follows:

• T.I.E. – $57,420 – this includes $16,000 in postage, making T.I.E. the lowest bid.

• LUMI – $73,025

• Votegrity – $44,000 plus postage

All quotes are estimates, and postage prices can vary based on the actual packages mailed and the cost of physical ballot storage after the fact. Ms. White recommends going with the known entity, T.I.E.

The POA will not need to conduct an election if only three candidates run for the three vacating slots.

2025 Budget and Fee Schedule

The 2025 Budget will be voted on at the December 18 Board Meeting. Controller Jama Lopez said a miscalculation has been found in the 2025 Fee Schedule that affects the budget by $1,500. Ms. Lopez said, “It is not going to change the budget. It has to do with the super senior and the employee rate. At this time, we have approximately 33 super seniors and 27 employees. Instead of $1,600 for a Super Senior Annual, it would be $1,675. And for an employee, instead of $1,800, it would be $1,675.”

This correction will be voted on at the December 18 Board Meeting.

Bylaw Edits

Edits were proposed for the Bylaws. This was mostly housekeeping.

Vice-chair Larry Siener said the paragraph on Board Authority in the Bylaws may not be what the Board Directors want to say:

“Section 2. Board Authority
I. To consult with and provide direction for removal, at pleasure, all officers, agents, and employees of the Association, prescribe their duties, fix their compensation, and require of them such security or fidelity bond as it may deem expedient. Nothing contained in these Bylaws shall be construed to prohibit the employment of any Member, Officer, or Director of the Association in any capacity whatsoever. Such duties as are provided in this paragraph below may be delegated by the Board to the GM, who shall report his/her actions to the Board of Directors.”

The Vice-chair suggested the Board Members take a look at this section.

Board Director Gary Belair said this paragraph has “been there forever, but the Board does not want to shirk its ultimate responsibilities, and that is why it is in there. It doesn’t mean that we are going to be in everybody’s daily business. What it means is if we have an outrageous employee who has been ignored, then it is the ultimate responsibility of the Board.”

Chair Corry stated, “I think the last sentence says it all. ‘Such duties as are provided in this paragraph below may be delegated by the Board to the GM, who shall report his/her actions to the Board of Directors.'”

Siener said that this paragraph implies that the Board has the authority to tell the General Manager to fire someone.

General Manager Kelly Hale said, “You don’t have that authority. You shouldn’t have that authority. That is a conflict that you are going to have a problem with. You’ve already been down that road before, where you had Boards that interfered. If you have a problem with what the General Manager is doing, deal with the General Manager. Either fire the General Manager or understand what they are doing. That’s it.”

The G. M. continued, “You get a Board that starts showing up at the POA office like they did before, that ain’t gonna work. We’ve already been down that road.”

Director Belair stated, “Individual Board Members do not have authority to do that. That is where some mistakes were made.”

Mindy Maxwell, Business Development and Client Relations Manager, Presented an Update on the Marketing RFP Process and Upcoming Steps

The proposal submission deadline was Friday, December 6, and marketing agency interviews are being conducted the week of December 9-13. The Communications Committee will review all proposals and vote on the agency they believe best suits the Village. Ms. Maxwell will compile feedback and recommendations and present them to the Board at the December 18 meeting. The Board will make a final decision on December 18.

Report by Cheryl Dowden