Building Code Board of Appeals Agenda and Packet 2020 10 15

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Building Code Board of Appeals Meeting Minutes (DATE) Page 10 of 27 Gollin asked, who prepared the Assignment of Right. Clark stated it came from Severy Creek. Gollin referred to the agreement, paragraph A —for services performed by Severy Creek, meaning the services were performed so the proceeds go to Severy Creek, when in fact no work had be done. Gollin referred to part C in the Assignment of Right agreement —it says pursuing the insurance company is at the expense of Severy Creek. Clark agreed. Gollin referred to Exhibit 15B. Gollin asked Clark to recall that the NexGen estimate was for $141,000 dated 7-9-2018. NexGen is a competitor to Severy Creek. Gollin continued, in February of 2019, Compass submitted an estimate of $102,000. Gollin asked Clark, Severy Creek sued the insurance company in order to get the insurance proceeds? Clark agreed. Gollin stated that information in the lawsuit was for hundreds of thousands dollar. Clark agreed. Gollin referred to Exhibit 18, a message to Clark from Fordyce. Clark stated the March 2020 email stated that Severy Creek settled the lawsuit and had taken all the proceeds. Another email from Furtado Law, which represented Severy Creek, stated they were going to begin work on the property, leading Fordyce to believe Severy Creek was going to replace the roof. Clark continued, it is also implied, per the Agreement of Rights, the settlement is contingent on work getting started. Gollin stated that March 2020 is a year and half after the contract was signed. Clark agreed. Gollin asked Clark to explain Exhibit 19. Clark stated, he spoke with Yvonne of Furtado Law on 4-27-2020 and Yvonne revealed to him that Severy Creek refused to release the documents signed by Fordyce so he could examine them for himself. As of 4-28-2020, Mackey Holdings owned the building. Clark stated, they notified the insurance company that the settlement was revoked due to Severy's breach of contract. Clark stated at this point he did not suspect fraud, but a definite breach of the agreement and the fact that calls were not returned. Clark continued, he had no knowledge of the case being settled or not. Gollin referred to Exhibit 20. Clark described it was a final invoice, meaning a few days before this, the Mackey property manager, Tom, heard from Severy Creek. On 7-14-2020, a final invoice was sent to Fordyce. It turned out to be a document with accounting, showing the claim was settled. Gollin recited the invoice- Building #1, $3,833.17 insurance paid to Gordon Fordyce. Clark determined that is the amount of the initial check paid to Fordyce for building #1, meaning in the contract it stated Severy receives all proceeds minus the initial check. Clark continued, Exhibits 20 and 21 were sent together as final accounting of the lawsuit. Clark continued, Severy Creek's attorney collected $60,000 from the law suit which was liquidated--- $36781.97 was paid toward legal, which does not favor Fordyce. An amount of $12,000 was kept by Severy Overhead and Profit(O&P), which was not in the contract, and no services were ever performed -how do you collect O&P? Then there was another fee for termination when the property sold for $9,000 for, which again was not in the contract. Clark stated, liquidating the settlement was a way to steal 10