President’s Message: Bulk Cable Update

Kim Fuller

Hello Residents,

The Bulk Cable survey is complete, and there were over 1,700 responses. I want to remind everyone that the survey is not an official ballot vote but is only a way for the Board to gather information from the owners of homes in the community.

On Monday, August 26, 2019 the Board voted to pursue contract negotiations with both Spectrum and Frontier to try and reach agreeable terms for a 5-year contract for TV and/or internet service. If the Board can reach an agreeable contract, an official ballot vote will then be prepared and sent out by regular mail. The reason for having discussions with both companies is just in case we cannot obtain an acceptable contract with one company we can still negotiate an outcome with the other company. Until we know contract terms for both companies, the Board cannot decide on which company should be awarded the contract to provide the service.

We did meet with Spectrum on August 21, 2019 to discuss the terms of their template contract and to request changes that the Board felt were necessary. As of this date, Spectrum has requested more time to evaluate our requests. There are several items the Board felt were necessary to change if we were to proceed. Spectrum doesn’t anticipate getting back to us with an answer for another couple of weeks.

The template contract offered by Spectrum was not acceptable to the Board, and the Board voted unanimously that such a contract would not be in the best interest of the HOA. As it is currently drafted, the Board would not go forward with the template contract in its present form. The key business points are:

  1. SCSHCA will require that it can terminate the contract if Spectrum is in breach of the contract and addendums and fails to cure those defaults within thirty days of receiving written notice of any breach.
  2. SCSHCA will require that the contract not have an automatic renewal feature at the expiration of the term of the contract.
  3. Spectrum will need to furnish certificates of insurance and applicable endorsements as set forth in our standard contracts for services provided by vendors to SCSHCA.
  4. SCSHCA will not provide an indemnity to Spectrum and will require Spectrum to provide an indemnity to SCSHCA.
  5. Spectrum will need to furnish SCSHCA with all their authorized Agents that will have access to the Property.
  6. The authorized Agents will need to furnish certificates of insurance and applicable endorsements as required of Spectrum or Spectrum insurance will have to provide evidence of coverage applicable to all Agents.
  7. Should Spectrum wish to assign the contract, the consent of SCSHCA shall be required which consent cannot be unreasonably withheld, conditioned, or delayed.
  8. A default on the part of Spectrum will include filing of involuntary bankruptcy, committing waste on SCSHCA property.
  9. The Spectrum contract will need to include exhibits where the current form refers to website locations; current policies under those provisions at the execution of the contract must be an exhibit to the contract.
  10. Spectrum must provide notice of any material changes to their current policies to SCSHCA so that SCSHCA can provide notice to its unit owners.

It was clear in the survey that about 85% of the residents responding want to do something about a bulk cable contract for the next 5 years. Residents who completed the survey chose Spectrum over Frontier 77% to 23%, but the Board will not be able to decide on the final outcome of which company will be selected until contract negotiations are complete.

If you have additional questions, please let me know.

Thank you,
Kim Fuller