UPDATE: DECEMBER 20, 2017
At last night’s board meeting, the board announced the renewal of the garage management contract with SP+. It’s either a two or three year deal – I can’t remember which one. But the board announced State Parkway’s property supervisor was able to obtain some $15.5K, or almost 2.5%, in concessions from SP+. However, with the projected 2018 garage operations shortfall still being 23.15% higher than what was budgeted in 2017, concessions are just a drop in the bucket.
ORIGINAL POST: DECEMBER 13, 2017
The board announced there will be a special board meeting next Tuesday for the purpose of awarding the garage management contract. The current contract with SP+ expires on December 31, 2017, or just 12 days after the special meeting.
For most of the past decade, the board has largely sat on its hands when it comes to garage operations. The board didn’t seem to care when State Parkway’s garage lost parkers or the fact that the garage was getting filthier by the day. More importantly, State Parkway didn’t seem to care when garage parkers had complaints about poor garage service. In fact, the board’s favorite mantra after it was revealed that non-exempt garage operating revenues were not being reported to the IRS, was “We don’t run the garage.” Not running the garage is not a defense to the willful filing of false federal and state income taxes in order to evade payment of taxes. The irony is maybe the defendants will be sentenced to a prison where they make license plates.
The problem with the board’s handling of the garage is it simply passes the soaring garage operations losses on to unit owners. That’s right, poor management and oversight led to even higher assessments. Garage operations and annual reserve contributions are the two largest line items in State Parkway’s annual budget that is making de-conversion (back to apartments) a reality.
Will the Association finally replace SP+ with another garage management company? If it does, SP+ true losses will be disclosed in State Parkway’s 2017 Audited Financial Statements. That is, the Association won’t be able to “fail to accrue” unrecorded garage liabilities after December 31, 2017. If it doesn’t, it’ll be business as usual at State Parkway.
Regardless of who gets the new garage management contract, SP+ should be ordered to pay for damages in the garage ever since it assumed control of garage operations through December 31, 2017. Going forward, the board should hold the garage accountable for damages in the garage that are either self-reported or uncovered through an annual inspection. Otherwise, unit owners will be left holding the bag for damages such as fixing the track for the overhead fire garage door on the ramp between the first and second floor, as well as damage to the locker room. Fresh paint should be applied to the parking columns after each annual inspection. More importantly, garage personnel must be held accountable for any and/or all sub-standard professional services. Garage personnel caught stealing and/or lying should be summarily fired. Shortly after my family and I moved in at State Parkway in September 2003, the garage denied damaging my mother’s car. And the Association falsely accused me of leaving my mother’s car parked in the front loading zone for hours where a passing car hit my mother’s car. My appeal was denied. But with the help of a neighbor’s security video, we were able to not only refute the false allegations but got the garage to admit liability for the massive damage to the front of my mother’s car during its very brief stay in the garage.
I haven’t seen the current garage management contract but I believe it may require more than 2 weeks notice of a non-renewal. Should that be the case, I expect State Parkway to renew its current garage operations contract with SP+ at the upcoming special board meeting. We need a garage operator that will accept responsibility for 1) the loss of garage parking revenue; 2) employee misconduct; and 3) property damage.