This is information directly from the meeting not included in the Q&A provided by Kennecott/HOA/Qwest. I find it interesting that folks that didn't bother attending the meeting to get a complete overview are upset with my comments. Oh well.

Option 1 Questions:

How will customer service be increased to homeowners?

- A specialized call center was recently relocated to Downtown Salt Lake City. A dedicated team of eight representatives trained to handle Daybreak and two other fiber optic communities locally is stationed at this call center.

One resident at the meeting had the occasion to use the "new" call center and was transferred 4 times before giving up. Understanding that new programs have kinks, that may have been the issue. However, after a stream of customer service complaints over the past five years, why is it now, at contract renewal time, Qwest has responded with a trained customer service department that should have been in place in 2005?

Is there any option to bundle Option 1 with TV and HS Connection (without a phone land line)?

- Yes, currently Qwest offers a television bundling option with Choice TV.

The TV offering from Qwest is substandard to all other offerings on satellite and cable while more expensive. To bundle you must sacrifice numerous channels and options for TV.

Will the new router be installed to include Wi-Fi and what is the cost?

- The new router that will be installed will allow for Wi-Fi and Static IP.

- There is no cost for the new router or installation.

- Qwest will schedule a time with each resident to replace the equipment on the side of their home and install the new router with a new battery back up.

- The upgraded equipment and router will be installed in waves starting mid, October, 2010 to Spring, 2011.


Please note: Should a resident find the new router is not suitable for their requirements and replace the router to meet their needs, Qwest will not cover repair cost of any interior equipment/line service issues as they will with equipment installed with the change over.
What would be the cost for homeowners to upgrade their speed? Will upgraded increments be discounted or adjusted to the retail rate?

- Upgrade pricing is currently being reviewed by Qwest’s legal council; once pricing is finalized it will be distributed to homeowners. Qwest anticipates having this information sometime mid to late October, 2010.


Upgrade pricing will not be available before contract negotiations are complete.

Can this option be extended to homes in Plat 1?

- Unfortunately the initial utility infrastructure and home wiring does not support the fiber to the home technology provided by Qwest and is cost prohibitive to extend to these homeowners.

Option 2 Questions:

Qwest runs promotions where one is able to purchase internet at a rate for less than $25.00/month. Comcast is able to provide basic cable for $19.99/month. What is the point of a bulk rate when homeowners can get a better deal individually?

- Included with promotional discounts are deadlines and expiration dates. Once the promotional period ends, you are paying retail rate which is higher.

If you have the option to shop and bundle, pricing can be negotiated for all services required. With a Qwest contract, there is no option.

- At the meeting, Qwest shared a current rate accrual that reflected an approximate savings of $900.00 per owner over a five year period for the bulk purchase option we would have in Daybreak.

All numbers were derived from "retail" pricing. As one resident stated at the meeting, "nobody pays retail".
Board:

Option 1 Questions:

What are homeowners’ currently paying for high speed internet? What is the cost savings with this option?

- Currently, included with the bulk agreement homeowners pay $35.00/month ($105.00/quarter).

- With the new proposed bulk agreement, homeowners will pay $33.00/month ($99.00/quarter).

- Savings of $2.00/month ($6.00/quarter).

Will homeowners’ see an increase/decrease in our HOA fees next year with this option?

- The Quarterly HOA assessment rate for 2011 has not been determined. We encourage residents to be involved in the budget process and attend the Budget Workshop scheduled for Tuesday, September 21, 2010. That said, the current Qwest high speed internet component equal to $35/month ($105 per quarter) would be reduced to $33/month ($99 per quarter) and your overall amount of dues would be adjusted accordingly.

With the 10% revenue sharing to the Community, what improvements to the budget are going to be made? How is the money going to be spent? Can the homeowners receive a 10% discount vs. being shared with the Community?

- The revenue sharing element will not be credited to each homeowner’s account, rather the payments that would be received each quarter will be used by the Community to benefit the Council and its programs within Daybreak.

Revenue sharing doesn't seem to be the correct terminology for what's going to happen. One of the major complaints against the contract was we (HOA/Homeowners) were paying for houses that were behind on dues or empty/foreclosed properties. Qwest did not have a contract option to terminate service to individual homes. In the new contract Qwest is passing the buck to the HOA and giving a kick back to attempt to cover costs. In the new contract the HOA will take charge of all the administration of terminating service. I'm not sure how they will balance the books since we pay our HOA fees in advance. If a homeowner misses payment for 30 days they receive a notice, service is still on. At 60 days, the HOA sends a termination notice, and let's Qwest know to discontinue service. So the HOA is still on the hook for at least 60 days service AND they have to administer all the back office work. The cost of administrating the program and the additional minimum 60 day gimme for delinquent accounts will increase the HOA operations costs, eating all if not more of the kick back.

Did the Board explore bulk options with other service providers?

- No, Kennecott Land has a 15 year commitment with Qwest, of which 10 years remain, to wire the community with fiber to each home along with internal home wiring. This agreement also precludes bulk contracts with other providers by the Community Association during that time period.

How long is the proposed new contract?

- The proposed bulk agreement is a five year contract for the Community, similar to the first agreement timeframe. This contract may have incremental review periods.

"May have" is the operative phrase here. The first 5 years had reviews and nothing changed until the day for new contract negotiations.
Option 2 Questions;

With Option 2, can homeowners’ opt out and select their own service provider?

- Yes, homeowners are able to select any service provider they choose.

Will homeowners’ see an increase/decrease in HOA fees next year with this option?

- The Quarterly HOA assessment rate for 2011 has not been determined. We encourage residents to be involved in the budget process and attend the Budget Workshop scheduled for Tuesday, September 21, 2010. That said, the current Qwest high speed internet component equal to $35/month ($105 per quarter) would be eliminated and your overall amount of dues would be adjusted accordingly.