Following Florida Statutes, resident makes a Motion to Cancel Hotwire Contract; motion passes in a 14, 9 and 3 vote.
After careful consideration of all of the details associated with the recently approved Hotwire contract, and with strong support of several residents in the community, Kevin Ryan made a Motion from the floor to cancel the contract with Hotwire Communications, Inc., dated July 13, 2020.
At the beginning of the Open Discussion portion Mr. Ryan was recognized by the President of the Board of Directors and given the floor.
The Motion was stated as follows:
"Mr. President, as per Florida Statute Chapter 720, Section 309, item “A”, regrettably, I am making a motion from the floor to call a vote of those attending this meeting to cancel the Hotwire contract approved by our President on July 13, 2020. The reasons for cancellation are as follows:
1) A 10-year contract for communications services is unacceptable given the amount of emerging communications technologies that will be available in the very near future.
2) A formal vote of the residents was not taken for this major contract.
3) A pricing structure was specified for only the basic service in the contract, and not for premium sports, etc., as the Cable Committee had indicated in the Survey, and Survey responses that the Cable Committee had successfully negotiated.
4) The Survey sent to the residents by The Arbors Cable committee was very one sided in its presentation to the community.
5) The Survey package clearly stated GUARANTEED Internet speeds of 200 Mbps download and 50 Mbps upload. Hotwire would not honor this guarantee in the contract.
6) 10-year term with 4% increase year 1-6, 3% for years 7-10, yet in the contract, a clause exists to also allow Hotwire to increase their costs under other market conditions
7) No option for residents to opt out of a Bulk Cable Contract with the HOA.
8) The significant impact expected to the Arbors community during the construction phase of Hotwire’s infrastructure installation. "
Mr. Ryan then read the supporting Florida Statute, as follows:
Florida Statute 720.309 Agreements entered into by the association.
(a) Any contract entered into by the board may be canceled by a majority of the voting interests present at the next regular or special meeting of the association, whichever occurs first. Any member may make a motion to cancel such contract, but if no motion is made or if such motion fails to obtain the required vote, the contract shall be deemed ratified for the term expressed therein.
The Motion was accepted by the Board and seconded from the Floor.
A vote then proceeded of each homeowner representative present in the room, on videoconference and teleconference.
Results of the Voting:
FOR CANCELLING THE CONTRACT: 14
AGAINST CANCELLING THE CONTRACT: 9
ABSTAINED FROM VOTING: 3
While the Board verbally objected to the venue for this Motion and indicated they will seek counsel from Ms. Ross, HOA Attorney, as how to proceed, Mr. Ryan requested that the Motion and Voting results be entered into the record of the meeting.
The Board acknowledged that the Motion and Vote would be recorded, as requested. The Board promised to send an eblast to residents regarding the opinion rendered by Ms. Ross regarding the venue of the Motion and its validity.
In discussion after the vote was recorded Mr. Ryan, along with several other residents, made it clear that they remain steadfast in their position that this contract, approved by Mr. Lee, is not in the best interest of the Arbors community.