This is a clearance hole for the 1/4" screw to pass through.
 

This should give you a better idea of what I'm doing. The 1/4" hole is positioned so I have a small amount of clearance between the two larger tubes. This way the outer tube on the upper section can spin. Notice the large chamfer on the lower tube, this is for a flat head screw.
 

This piece looks similar to the aluminum spacer that I made earlier. However, this piece is made out of steel and will be getting welded to another piece that goes to the flagpole base. As you can see by my scale, I've bored it 3 1/2" deep. The opposite end is 1/2" thick so I can weld without worrying about burning through.
 

This piece will get welded to the round part above. The holes are 1/8" diameter and will have pins in them when I'm finished. The pins are so I can 'clock' the flagpole at the angle of my choice. And these pins will go into a mating part that I made a couple of years ago that I'll show you later. The left end will have a radius (scribed line) and the other will be tapered to fit my piece above.
 

The paper that you see below has the coordinates for my base (that I made awhile ago) that has 24 holes in it. But I only needed to use half of them for the above part. Note the lines at every other location equaling my 12 holes. It's a good thing I saved this paper because it came in handy. 
 

This part is made out of 3/8" thick steel. I'm roughing away some material here to make it easier to sand later. All you do is move both X and Y handles at the same time, staying away from your line while machining.