brdmtg3172005

Sunshine Acres Property Owners Assoc.

Special Board of Directors Meeting

March 17, 2005 at Diamond Point Firehouse

Meeting Called to Order by President Dave Taney at 7:30 p.m.

Quorum established, all Directors present except Sarah Kincaid

Nine (9) Property Owners were in attendance.

Minutes of 02-28-05 Meeting presented by Secretary Kathleen DeStefano

Everett Stauffer made a motion to accept the minutes as presented. Lew Morello seconded the motion. Pastor Na asked that the minutes be amended to read that he did not abstain from voting on the motion to keep Barry Olson on the Beach Road Committee. Everett made a new motion to accept the minutes as amended. Lew Morello again seconded the new motion. The motion passed unanimously.

Irma Martin presented the Treasure’s Report from November 8, 2004 to March 17, 2005. Everett Stauffer made a motion that the Treasurer’s Report be accepted as presented. Kathleen DeStefano seconded the motion. The motion passed unanimously.

President Dave Taney explained that this was a Special Board Meeting and the agenda items all dealt with the Mussel Beach Road Project. Dave started discussion by explaining that all the Directors had been provided copies of a proposed mail ballot dealing with 4 Mussel Beach Road issues ahead of time to give them time to read it in depth. Dave asked if all the Directors were in agreement that a mail ballot was required. They all answered in the affirmative and said that, that had been decided in the preceding Board of Directors meeting. Dave asked if anyone had any comments and or suggestions regarding the ballot. Everett asked that on Page 2 Item 4 first sentence the words this year be in bold text. Everett Stauffer made a motion that the ballot be sent to all members with the one change. Pastor Na seconded the motion. The motion passed unanimously.

President Dave Taney presented a recap of the last payment made to Olympic Excavation on March 14, 2005. The check was picked up by Mrs. Booren the afternoon of March 15, 2005. Everett presented a recap of total payments to date. We have paid 102.6% of materials, 69% of labor, 72.6% of labor and equipment, and 88.7% of the total due. We have a new total contract price to pay including 2 change orders, $126,631.35. After holdback the figure is $ 117,861.86 due at completion.

Dave advised the Directors that the next page in the handouts was somewhat of a surprise. He had received a registered letter from Olympic Excavation demanding prompt payment for the rock retaining wall and threatening legal action if we did not comply. Dave expressed his displeasure in that he had personally talked to Mr. Booren on Monday evening March 14^th after Mr. Booren had pulled out his equipment and left the job. Mr. Booren had subsequently agreed to return to work on the project no later than March 21, 2005. Kevin Booren had requested payment for work performed to enable him to repair his equipment which had broken down.

Dave went on to state that the last page of the handout was a letter he had drafted to Mr. Booren stating that if he failed to return to work on the project by March 23^rd and remain until completion, that we would consider that a breach of contract and go to our attorney for resolution. Everett made a motion that the letter be sent to Olympic Excavation on March 18, 2005. Kathleen DeStefano seconded the motion. Kathleen asked if we had run the letter by our attorney. Dave said no, but that he was positive that legally we were fine. Dave said that the contract was very clear that without a signed and approved change order we were not liable for the retaining wall and the contract called for completion in 60 days. We’re now at nearly 180 days. Dave also said that should Mr. Booren not finish the job we have adequate funds to finish the job ourselves or hire another contractor. The motion passed unanimously.

Dave Taney presented a change order for Board approval. Dave said that we have previously approved one for $873.28 and that he had reminded Dawn (Mrs. Booren) to bring her invoicing up to date. This second change order was for 300 ft of drain rock required for fill due to the necessity of increasing the dept of the perforated drain pipe on the upper 300 ft of the west side because of ground water and blue clay soil. In addition it covered increasing the width of the road between stations 125 and 575 from 16 ft to 20 ft. Dave, Sam Mrakovich, and Neil Eckerson had approved the change order. The amount was $1259.53. Pastor Na made a motion that the Board approve this change order. Lew Morello seconded the motion. Everett Stauffer reminded the Board that the proper procedure was to approve these change orders before the work was commenced not after the work was done. Dave acknowledged that was correct and that yes this work was nearly complete. He also acknowledged that this would increase the eventual paving costs by $5000.00 to $7,000.00 due to increased square footage being paved.

Cecilia Eckerson asked what the normal flow of change orders was. Dave explained that it depended on who was requesting the change. If SAPOA was requesting the change it would go from SAPOA to the contractor and back to SAPOA. If the contractor was requesting the change then it would go in writing from the contractor directly to SAPOA.. Everett mentioned that we had through these change orders increased the total sq. footage by nearly 4000 sq. ft. The motion passed unanimously.

President Dave Taney requested the permission of the Board to consult with our attorney Jan Tierney if Olympic Excavation does not return to the job by March 23, 2005, and pursue our legal options. We can then finish the job ourselves or hire a replacement contractor. Sam Mrakovich said that he had talked to Dawn Booren and had been assured that Kevin Booren would return to work possibly as early as tomorrow. Dave said that he would wait and see and not mail the letter until after mail delivery on Friday p.m. Dave said he would see how good Mr. Booren’s word was.

Dave asked Neil Eckerson if he had been down the Beach Road today and if he knew how to day’s rainfall was being handled. Neil said he had not, but would on Friday.

Bill Andrew asked if we were sending the letter to Olympic Excavation registered. Dave said yes, certified and return receipt requested.

Tom Pysher asked about Kevin’s concerns about properrty owners being on site. Dave said that was a liability concern, but short of armed guards or chaining violators to a post there was no 100% guarantee with 405 members that we could keep everyone away. We have made the request in our newsletter and have signs up. In addition Dave asked Neil Eckerson to put a notice up on the SAPOA/GDP reader board. Tom mentioned that we should not let this become a point of contention for the contractor to use in a legal dispute. Cecilia jokingly volunteered to be the armed guard.

         Everett Stauffer expressed his concerns that Olympic Excavation was out of control and was repeatedly working in the 200 ft critical areas zone. He wants the BRC to keep him out of there. Keith DeStefano asked if Everett had a camera. Everett said not a good one. Dave Taney said that the contractor is within a few days of completing the project. He expressed his concern that another week of good weather had been lost. Dave just wants him done, wrapped up, and out of there.

          Larry Werner asked, the Board mentioned that all change orders need to be approved before they are implemented and wanted to know, what about changes that Barry Olson had made in the area of the settling ponds. Dave Taney stated that no approval had been asked of the Board and none had been granted. Everett Stauffer also said no request was made and no work had been accomplished. Larry asked if Barry Olson had approved it and Dave stated that he would have to ask Barry.

          Lew Morello made a motion that the meeting be adjourned. Kathleen seconded the motion. The motion passed and the meeting was adjourned at 8:10 p.m.