COMMUNITY CABLE AND TELECOMMUNICATIONS BRIEFING

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3 Wimbledon AT TOWN PLACE COMMUNITY CABLE AND TELECOMMUNICATIONS BRIEFING January 2019

4 Agenda & Content 1. Why Associations choose Bulk Agreements 2. Legal Requirements 3. The Board s Responsibility 4. The Board s Guiding Principles 5. Overview of the Evaluation Process 6. Comcast Data and Survey summary 7. Pros/Cons of Un-Bulking 8. Pros/Cons of Bulk services (w/hotwire) 9. Summary of competitive proposals 10. Preferred vendor (Hotwire Communications) 11. Hotwire Service Overview 12. Implications 13. Next Steps

5 Why do Associations choose bulk communications? Better pricing for combined Television and Internet services Dedicated customer service and escalation channels not available to retail buyers Upgraded infrastructure (e.g., cabling, network) important for owners, buyers AND renters Many retail services are not available to individuals in HOAs this is an issue for Wimbledon An owner cannot call up an area cable or internet provider for service, as they have no legal easements to access restricted communities without a bulk agreement Economics play a significant role even with easements, the expense of installing communications infrastructure for a single owner is cost prohibitive Community size and location also plays a role large communities will have more options

6 HOA contracts are governed under Florida Statute, Chapter Statutory requirements include: ü HOAs must obtain competitive proposals for services that exceed 10% of annual operating expenses (since 2004) ü Multi-year contracts require a minuted vote of the majority of the Board ü A 1999 amendment to Wimbledon s governing documents, approved by a 2/3rds vote of all owners, authorizes the Association to procure communication services on behalf of all owners AND assess for those services Statutory requirements do not include: ꓫ Owner voting on proposed contracts ꓫ Input from non-owners (e.g., renters and other non-owner residents, etc.) ꓫ Community surveys ꓫ External expert advice

7 The Board s responsibility for long term contracts are: ü Ensure compliance with all statutory requirements ü Ensure the network infrastructure inside the Association is safe, well maintained (e.g., pedestals, no exposed cabling, etc.) and attractive to potential new buyers ü Protect and increase owner equity (e.g., ensure property values are protected and increase) ü Act in the best interests of the collective ownership

8 Guiding principles used by the Board to evaluate our options Seek input from owners through Board meetings, one-on-one discussions and surveys prior to making a decision on behalf of the Association Communicate our approach, key issues and progress to all owners via our newsletters Retain external, specialized expert and legal advice to assist in this decision Request proposals from only from large, reputable organizations that provide bulk services in our service area (e.g., no mom & pop s ) Seek to ensure that current and future communications infrastructure is safe, reliable, consistently well-maintained and has a positive appearance ONLY support a new bulk contract under the following conditions: A clear majority of owners will see a net savings on communications services (cable, internet, etc.) Infrastructure must be future-proof, modern and capable of supporting expanding data speed Must address persistent, widespread interior wiring issues for our owners The terms and conditions of any agreement must be competitive with current market Ensure minimum services are included in bulk, allowing individual choice for add l services

9 Our approach to evaluating options ü Retained an expert communications attorney with more than 30 years experience negotiating cable contracts for municipalities and HOAs ü Requested proposals from the 4 cable companies operating in our area ü Actively sought community input Cable was covered as a topic in 5 Board meetings, with robust discussion and specific updates recorded in the minutes and newsletters Developed and sent via (3 times) a community cable survey with 95 out of 160 owners responding Scheduled Special meeting on Cable, January 31, 2019 ü We took this approach to ensure: Wimbledon makes an informed decision for the best long term benefit Competitive tension exists to receive the best possible proposals and outcome Owners receive maximum value The Board meets all statutory requirements and fiduciary responsibilities

10 Data highlights from Comcast AND the Wimbledon Cable Survey 60% of the Community responded to the survey (95 out of 160 owners) At least 88% of owners buy wired internet (i.e., not relying only mobile wireless), 120 through Comcast and at least 20 (est.) from other vendors such as AT&T/BellSouth Almost half of owners buy a wired landline phone 30% through Comcast, and another 20% through others such as AT&T and BellSouth Average individual cable & internet bill is nearly $100/month, in addition to what the HOA pays (total over $150+) Range of reported individual internet services cost between $40-$120 (monthly) 40% of respondents report interior wiring issues with Comcast Significant number reporting they are unhappy with internet speed By a 2-to-1 margin, those who commented on Comcast did not like them

11 The Pros and Cons of Un-Bulking for Wimbledon Pro s Lower Association expenses Owners able to select and pay for the services they choose Con s All owners will be stranded with current Comcast infrastructure no clear ability to re-bulk in the future 80-90% of the community will see significant increases in their monthly telecommunication expenses starting October 1 st Service options limited to: Retail Comcast (on current Coax infrastructure) Satellite dish AT&T/BellSouth DSL over copper wire Wireless/Mobile telephony Wimbledon will lose escalation channels and leverage with Comcast to resolve infrastructure and service issues Will have more satellite dishes in Wimbledon, with visibility restrictions limited by Federal Law and FCC regulations

12 The Pros and Cons of Bulk Communications for Wimbledon Pro s 80-90% - will see a net decrease in total monthly costs, many of them significant Higher internet speeds included (250 mbps) and not on a shared network Resolve interior wiring issues with new fiber optic network no more splitters hidden in walls or rooms with limited service Plug & Play option will eliminate the need for many paid boxes common to today s Comcast service, potentially lowering bills even further Dedicated local customer service and HOA escalation channels New fiber optic network future proof with 8-10x capacity capable of streaming high resolution video Access to reliable, fast internet service in demand by new buyers and renters Market evidence fiber optic networks to the home add ~3% to home equity values Con s HOA expenses will marginally increase Comcast infrastructure will remain in Wimbledon (due to easement rights) meaning pedestals will stay

13 Summary of proposals received We received proposals from 3 out of 4 vendors All proposals bundled Cable TV with Internet access there are no viable bulk options for separate Cable TV or Internet-only services 2 of 3 vendors (Hotwire and Atlantic Broadband) included new, fiber optic network infrastructure, including inside homes Comcast proposed a fiber optic solution, but only within the community (not to homes) and with a delayed installation timeline Despite this, Comcast s pricing was comparable with the other proposals AT&T chose not to provide a proposal, citing infrastructure cost and the size of our community

14 The Board selected Hotwire as the preferred Bulk vendor because they have The most experience re-wiring homes of Wimbledon s age, and provides services to many HOAs in Boca Raton A fiber optic network that is dedicated meaning service is not shared with other customers, enabling reliable, faster data access Wide fluctuation in internet speed with Comcast, is due in part to network sharing When others on the same network stream video, for example, speed slows due to capacity constraints on a shared network Guaranteed service levels with outage credits National headquarters and customer service operations based in Fort Lauderdale, with redundant backup service centers in Georgia and Pennsylvania

15 Comparison of Current Comcast vs. Hotwire agreements The current Comcast Bulk contract provides 1 High Definition Receiver 1 Standard Receiver Digital Starter + HBO And does NOT include Single or Multi-room DVR Basic Internet Access Bulk Cost - $55/month/home (excl. fees & taxes) Average incremental fees of $75-$125/month/home Average total cost - $155/month/home New Hotwire Bulk contract provides 1 High Definition Multi-room DVR Receiver 1 Companion Receiver (w/dvr capability) Digital Access + HBO Internet access 250 Mbps down/50 Mbps up 1 year of free landline telephone Bulk Cost - $89/month/home (excl. fees & taxes) And also includes Record 4 HD shows at once, while watching a 5th Watch live TV up to 48 hours after programming Plug & Play (less need for paid boxes) Paid add l internet speed up to 1 Gbps The Hotwire Bulk agreement will save money for almost all Wimbledon residents if you buy internet access, you will save money

16 Hotwire s services to Wimbledon will include Network Infrastructure Dedicated (not shared) fiber optic network Rewiring of all homes Free (previously paid) service to the pool and guardhouse Services included: TV Internet Phone Digital Access + HBO 1 HD/DVR, 1 companion Plug & Play (reduced need for paid add l boxes) Remote access (similar to the Xfinity App) 250/50 Mbps internet speed Wifi Modem included free, not rented Owners will be able to keep existing Comcast.net addresses Keep existing landline phone number 1 year of free landline phone service, $14.99 in Year 2, $24.99 in Year 3 Additional Services available (for purchase): Expanded Digital Channel offerings Up to 1 Gbps internet speed Record 4 HD shows at once, while watching a 5th Watch live TV up to 48 hours after programming (w/o DVR) Standardized pricing for additional services no confusing promotions, same rate card for all residents Hotwire also has seasonal plans for parttime residents Those wishing to keep Comcast may do so, but at their own add l expense

17 This agreement will marginally increase HOA expenses beginning in 2020 ü There will be NO CHANGE in either the Association s expenses for 2019, or 2019 monthly assessments The 2020 budget will see increased costs of $25-$35/month, per unit, with the addition of bulk internet This amount is less, including taxes and fees, than the basic Comcast or AT&T internet services available in Wimbledon today ü Based on current service data (Comcast + Survey) the overwhelming majority of owners will see a NET DECREASE in total costs Example, if your HOA costs go up by $25-$35/month, while your cable and internet costs go down by $40-$90/month, you will save a net of $5-$50/month The more your current cable and internet services cost, the more you are likely to save! ü Many residents will be able to completely eliminate their additional retail cable tv, internet and telephone bills

18 Next steps ü Hotwire will host a special information session in late February/early March, in which all owners are encouraged to bring copies of their current communications bills for comparison ü Hotwire will schedule in-home assessments with each owner to define individualized installation requirements and plan ü Installation is expected to take as long as 6 months, but must be complete no later than October 1, 2019 the day our current Comcast agreement expires ü Once Hotwire services are activated, residents will be able to cancel their existing cable tv, internet and phone services and start saving!

19 THANK YOU

20 Hotwire currently serves the following communities in our area: (This is only a select list) Boca West 101 Via Mizner 200 E Palmetto Park Boca Falls Boca Greens Boca Isles South Boca Lake Estates Boca Marina Yacht Club Bocaire Boca Woods Broken Sound Cloister Beach Towers Courtside Villas at Mission Bay Excelsior Condominium Mission Bay Newport Bay Club Sabal Shores Sinai Residences St. Andrews Stonebridge Golf & Country Club Stratford Arms The Yacht & Racket Club of Boca Raton Valetta Woodfield Country Club Boca Delray Delaire Country Club Delray Place Grande Orchid Estates Latitude Delray Pelican Harbor