President
Good morning residents,
At our last Board meeting on Monday 12/16/2019, the Board made a presentation of current information regarding Bulk Cable Contract negotiations. You can view that presentation by going to the following link
The Board has been waiting on a response from Spectrum since our last meeting with them on 8/21/2019. Since then, Spectrum communicated in writing on multiple occasions they needed additional time to review their initial proposal and establish a new pricing model due to changes with many of their content providers. It is not the Board nor our attorneys who have been delaying negotiations.
On 12/6/2019 the Spectrum representative stated to us the following:
Spectrum has incurred significant increases in our programming costs across the board. This has required us to revisit our offer with our finance group to make sure we are in compliance with our new cost model.
After the Board meeting on Monday 12/16/2019, Spectrum submitted a new proposal. The Board is reviewing that proposal in detail now and we can hopefully have more complete information to you soon.
Some basic points in the new proposal include:
- Price will increase from $40 to $48 per month excluding all taxes, fees and any HOA fee
- Spectrum will not pay a Door Fee to the HOA ($1.035 Million)
- Reduction in content – No HBO or NFL Red Zone
- Small dollar amount changes in equipment pricing
These changes will bring the estimated total monthly cost per residential lot to approximately $51 to $57 per month depending on taxes and fees.
Unfortunately, this increased cost proposal by Spectrum does not address the contractual legal concerns which the Board communicated to Spectrum four months ago, so we again have asked Spectrum to respond to these concerns.
We have continued negotiations with Frontier and will hopefully resolve any legal issues with their agreement by next week. Currently, we have one insurance point to reach agreement on with respect to the significant terms of a proposed contract.
Hopefully this clarifies how we are proceeding. We are trying to work with both companies as quickly as possible to reach a positive conclusion. But we must wait for their responses and that is something we cannot control. Once we have all the information from both companies, we can decide how to proceed in the best interest of the HOA.
Let me know if you have further questions.
Thank you,
Kim Fuller
President