Are you a board member who wants to learn more about the potential of mass contracts on the Internet or cable? You can count on RealManage for all your HOA card requirements. What are the burdens associated with MDU mass agreements? Bright House Network – Bulk Service Agreement [6/13/11-05] The review of a revised mass tariff/service agreement (City Franchise`s provision has been replaced by the company`s state franchise. A reliable internet connection for shared apartments is a daily must. But choosing the right supplier and structuring the best offer on behalf of your HOA/COA is not as easy as it seems. To choose the right network provider and manage the process of internet/WiFi services, TV and mass phone for the residents of your MDU (Multi-Dwelling Unit) community, the planning is perfect. When parishioners like snowbirds spend several weeks or months outside their unit, they can`t turn off their TV services. Although they don`t use the services, they still have to pay for it if they have a mass agreement. This is not the case with other services as they can be disabled when you are not at home. First, the landlord may not be willing to assume the legal obligation to pay for services provided to residents over a period of several years. In fact, the decision to enter into a mass agreement only makes financial sense if the added value of providing cable and/or broadband services to residents exceeds the cost of paying for the mass service. Start by recognizing that a BSA is a legal contract. Therefore, it is important to understand the details of the conditions of use, installation times, etc.
Here are a few things to keep in mind when planning and executing your community agreement: A bulk service agreement (BSA) is an agreement/contract between a condominium or homeowners` association and a business that provides services to all members of the community. BSAs are often used for telecommunications services such as Internet, telephone and television or cable. Since members (residents) group under a BSA, they receive the services at a significant discount. The cost of mass services is included in the association`s annual budget and is paid by each owner of the unit through regular assessment payments. The obvious question is: Why would an MDU owner want to pay for cable and broadband services used by individual residents? Unit owners have the option of terminating pre-sales contracts entered into by the developer. The agreement may be terminated by an affirmative vote of at least seventy-five (75%) percent of the voting rights other than the promoter`s voting rights. Fla. Stat. § 718.302(1)(a). Florida courts have ruled that the law that allows owners to terminate contracts entered into by the developer before revenue applies to cable TV service contracts. Comcast of Florida, L.P.
v L`Ambiance Beach Condo Ass`n, Inc., 17 Sun.3d 839 (Fla. 4th DCA 2009). In addition, Seacoast has entered into a bulk service agreement (R2017-0444) with Palm Beach County to provide Seacoast with up to 5 MGD of bulk drinking water and wastewater. If the Customer subsequently enters into a Mass Service Agreement, the substantive rights and obligations of this Section 16.1 will be transferred (but not extended) into this Agreement, provided that such rights do not in any way exceed [ * * * * * * The question of whether the added value in the individual case exceeds the cost depends on various considerations. These considerations are all related to the fact that a mass service contract is in fact an exclusive agreement with respect to the service(s) provided on a mass basis. If video or data services are provided to residents as a mass supply, there will be no second provider of that service or services, as it is unlikely that a second provider will invest in a property where residents are actually required to pay for the mass provider`s service. In other words, when services are provided in large quantities, the resident has no choice between service providers. In summary, when reviewing a mass service contract, the first step for a field unit owner is to make an informed decision based on the characteristics of the field unit community concerned as to whether the benefits of entering into a mass agreement outweigh the burdens. If it is determined that a mass agreement is appropriate, the next step is to negotiate the best possible offer in terms of the service or services to be provided and the monthly mass payment. While several factors influence such a negotiation, it is safe to say that the service provider`s initial mass service offering is not the best possible offering. Often, the condominium corporation developer will enter into a mass service contract with a service provider prior to revenue.
This is usually done so that the developer can offer the devices for sale, with the added incentive to already offer cable and internet services. The Florida Condominium Act (the “Act”) allows the developer to enter into such agreements on behalf of the corporation, provided that the agreement is fair and reasonable. Fla. Stat. § 718.302(4). The cost of mass services is included in the association`s annual budget and is paid by each owner of the unit through regular assessment payments. Pay particular attention to the duration of the contract in relation to the time it takes for the supplier to cover infrastructure costs (installation of the fiber optic or cable system). At QXC, we structure our contracts to create a very stable and predictable pricing and service model for your property throughout the term of the contract, as well as a guaranteed purchase of the contract at the end of a period for a small fee, saving your HOA money in the long run. In some municipalities, lack of choice (i.e., competition) is not an issue.
For example, the choice between service providers is often less important for older residents than for a younger, tech-savvy population. And for a resident population that lacks consumable income, it is less important to have a choice than to have a discount on services. Therefore, mass arrangements are typically used in older homes and low-income housing facilities. In addition, mass agreements for condominium communities (as opposed to rental properties) often make sense because managing a condominium community is more democratic than managing an apartment in an apartment complex. A tenant who pays a monthly rent may rebel (for example. B by moving or refusing rent) if he fears being forced to pay for services he does not want, while the owner of a condominium has (presumably) participated in the democratic process that led to the execution of the mass agreement for the entire community. Finally, mass agreements for a temporary community, such as student housing, simply make logical and practical sense, as residents are not able to commit to the one- or two-year subscription term that cable and broadband companies typically need for individual customers. .