Cable provider service agreement

I have negotiated several bulk contracts in which the Boards have voted to accept. The difference being, they adhered to the Bylaws as far as lengths of contracts extending over one year, the cost was shared by the homeowners equally as part of their assessments and there was a substantial discount to the homeowner. The terms were three and five years.

IMO, I wouldn't touch this with a ten foot pole. No discount to the homeowner, ten years for what, the monetary incentive to the HOA would be taxable income.

Thank you for responding. I agree with you.

I feel this agreement would discourage other providers from wanting to invest their capital in the development. Other than the current cable provider, the only other option is a satellite dish.

To the best of my knowledge, they have been advised that a 10 year agreement was not do-able. The compensation being offered for the 10 years is $60,200. I understand there is a counter offer by the HOA - $100,000 for 10 years; $40,000 for 5 years. IMO, with technology improving everyday, 10 years would be crazy.

I should also add, the service provider currently has 75% of the community. Than again, the owners really didn't have a choice. This is a fairly new community and the developer made the original agreement with the service provider. The development just transitioned over to the owners this year.

We went through this a few years ago with a bulk provider. My guess it is the same one. We are so glad we did not do it. In the industry, 10 years is a lifetime with all the changes going on. Also, the agreement was very vague. For us in a high-rise, they said they would rewire and so forth, but would not provide any specs on the work, who would do it, speed and so forth. They would also not guarantee their customer satisfaction and their service was rated poor consistently. The sales folks are totally divorced from service and installation. By searching the internet, I found where in another part of the country, five years was being offered and with better terms - cash also. As I recall, the agreement was legal since while it prevented the Association from entering into another bulk agreement, it did not prevent owners from getting their own provider. They ended up offering us cash, five years and we still did not do it. (I was on the Board at the time and I recall asking some of the younger tech savvy owners about this. They don't even have cable anymore but get it all on the internet.) They still come by every year trying to get us to sign up.

The service provider has now agreed to a 5 years term with $30.000 compensation. However, the situation gets sticker due to need for the service provider to obtain a grant of easement. Below is copy of email I sent to the service provider. Would appreciate your opinion on this situation.

Email to service provider:
When I spoke with you on May 4th, you acknowledged that the above ground enclosure is on my private property. I will not give "service provider" "gross and right-of-way" to my entire front lawn. The only easement I will consent to is refined to the area where the above ground encasement is currently located, not a inch more. I will not sign any grant of easement until such provisions are made as it pertains to my private property.

I am willing to sign a LIMITED GRANT of EASEMENT that conforms with the above.

The language as stated in your current Grant of Easement reads:

In consideration of One Dollar ($1.00), the Grantor(s), owner(s) of the Premises described below, hereby grant(s) to the Grantee, its successors and assigns, an easement in gross and right-of-way to construct, use, maintain, operate, alter, add to, repair, replace, reconstruct, inspect and remove at any time and from time to time a broadband communications system (hereinafter referred to as the "Company Wiring") consisting of wires, underground conduits, cables, pedestals, vaults, and including but not limited to above ground enclosures, markers and concrete pads or other appurtenant fixtures and equipment necessary or useful for distributing broadband services and other like communications, in, on, over, under, across and along that certain real property (the “Premises”).

Elizabeth

It seems you have lost the war on a group service agreement so why keep fighting battles when you know the war was lost?

What is a "confidentiality" clause and is it legal in your state to withhold contract details from owners?

Interesting. Can an HOA execute an agreement that binds every member to a confidentiality clause? The members will certainly be entitled to see the contract under FL law. What happens if one of them reveals its details to people not in the HOA?

I would be running away from this deal as fast as I could. Cable companies are not the most ethical entities in the world. Everything the board does should be for the benefit of the members and since there is no discount for the CABLE services in a CABLE provider contract I would be hesitant, regardless of the fact that the lump-sum cash payment can also be considered to be "for the benefit" of the members.

All I know is that if my HOA negotiated a deal in secret that wound up binding me to a non-disclosure clause I had no knowledge of beforehand, I would be a very unhappy camper. Can an HOA even do that?

Elizabeth

Why am I of the opinion that if the BOD accepts a deal from the cable company that you will still personally try and hold it up?

Elizabeth

Having switched cable several times the worst they ever did to my lawn was ditch witch or vertically drill. It was never "ripped" up and when done it was hard to notice what they.

I believe your concern about then "ripping" your lawn up is a smoke screen for you to try and control the project if you are out voted on it going forward. Kind of like the kid who takes the only baseball home when he did not like who was chosen.