BELLA VISTA -- At the monthly meeting on Aug. 26, the POA board of directors did not act on one of the few agenda items for August.
The POA has received an offer to buy out the leases on four cellphone towers that are located on POA water towers. The leases now pay $40,000 a year that might mean a total of $973,000 over the next 20 years. However, the leases could be canceled at any time. The offer was for a 25-year lease for $500,000.
General Manager Tom Judson explained that some board members are concerned about the cost of repairing the Lake Ann sinkhole, which is expected to be expensive. The funds from the lease buyout might be used for that project, leaving funds in the budget for other capital projects. So far, the board has accepted a bid for engineering that project at a cost of $69,500 but the cost of the actual repairs may be much more.
Chairman David Brandenberg said that if no motion was made about the cell tower lease, it would be effectively tabled and could be on future agendas. With no motion made, the board moved on.
The regular financial report was given by Stacie Higgins. Revenue, including $2 million received as legal proceeds, was over budget.
The legal proceeds were from the settlement of the Armstrong lawsuit concerning the Trafalgar Road fire. The funds came from insurance that covered POA board members and corporate officers, Higgins explained after the meeting. The total cost of putting out the Trafalgar Road fire was actually over $4 million, she said, but there's no way of knowing if other litigation may help to cover the remaining costs.
The POA still owes $2.5 million to the water department -- funds borrowed to pay fire expenses -- but Higgins doesn't see any advantage in transferring the $2 million to pay down that loan immediately. She recommended waiting until the budget process for 2022, including several capital projects, is complete.
Even without the $2 million, revenue was over budget, she said. She called it a "solid July." Both golf and the food and beverage division were over budget, she said.
The board passed the first reading of Policy 8.01 which clarifies indemnification of board members. A second reading is required to pass the policy. Indemnification protects board members who are volunteers and corporate officers from lawsuits. The policy makes it clear that the indemnification comes first from insurance policies purchased for that reason and then from the POA.
Last week, POA attorney Doug McCash explained that the settlement of the Armstrong suit drew the board's attention to policy 8.01. The changes are only to clarify the existing policy.
The board also voted to name Corinne Morin the new corporate secretary, replacing Tammy Loyd. The corporate secretary also serves as the assistant to the general manager.