3/16/1981 - Laserfiche WebLink

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MAR 251981 MR. REINHOLD OF REINHOLD CONSTRUCTION WISHED TO ADDRESS THE BOARD ON SEVERAL MATTERS, THE FIRST BEING A LETTER DATED MARCH 20TH, OF WHICH HE HAD RECENTLY BEEN MADE AWARE, ADDRESSED TO GULF INSURANCE COMPANY, SIGNED BY ATTORNEY CAL BROWN AS THE BOARDS COUNSEL. HE THEN PROCEEDED TO READ ALOUD THIS LETTER RELATIVE TO THE PERFORMANCE BOND PUT UP BY REINHOLD-;CONSTRUCTION, WHICH PUT GULF INSURANCE COMPANY ON NOTICE THAT THE CONTRACTOR IS IN DEFAULT OF THE CONTRACT FOR REASONS ItTOONUMEROUS TO ENUMERATE It AND SUGGESTED THAT THE INSURANCE COMPANY PROCEED ACCORDINGLY. MR. REINHOLD STATED THAT REINHOLD CONSTRUCTION IS CONFORMING TO EVERY PART OF THEIR CONTRACT. HE WAS VERY UPSET BY THIS LETTER AND WISHED TO_KNOW IF THE COMMISSION HAD AUTHORIZED THEIR ATTORNEY TO WRITE IT. ATTORNEY COLLINS RESPONDED THAT THE BOND REQUIRES THAT THE BONDING COMPANY BE PUT ON NOTICE IF THERE ARE ANY DISPUTES THAT MAY GENERATE PROBLEMS IN THE FUTURE; THIS IS CUSTOMARY EVERY DAY PROCEDURE, AND HE DID NOT BELIEVE THIS SORT OF LETTER REQUIRED COMMISSION APPROVAL BECAUSE THE ATTORNEY HAS BEEN INSTRUCTED TO TAKE WHATEVER ACTION IS APPROPRIATE. HE EXPRESSED REGRET THAT MR. REINHOLD WAS UPSET, BUT FELT THE CONTRACTOR SHOULD KNOW THAT SUCH A LETTER IS COMMON TO THE TRADE WHEN SITUATIONS LIKE THIS ARISE. IT WAS NOTED THAT AT THE LAST MEETING, IT WAS AGREED THERE WAS A"DIFFERENCE OF OPINION IN SOME AREAS AND THAT IT WOULD BE NECES- SARY TO GO TO ARBITRATION. MR. REINHOLD STATED THAT HE BELIEVED THIS LETTER IS LIBELOUS; IT IS FULL OF FAULTS AND DOES NOTHING BUT HARM THE CONTRACTOR IN HIS RELATIONSHIP WITH HIS SURETY COMPANY. MR. REINHOLD REQUESTED THAT THE BOARD'DIRECT THEIR COUNSEL TO WRITE THE INSURANCE COMPANY A LETTER THAT PROPERLY DELINEATES THE PROBLEM AND SETS OUT THE SPECIFICS, WHICH ARE NOT "TOO NUMEROUS TO ENUMERATE." ATTORNEY COLLINS REITERATED THAT IT WAS NOT THEIR INTENT TO HARM THE CONTRACTOR, BUT JUST TO PUT THE INSURANCE COMPANY ON NOTICE. HE CONTINUED THAT PROJECT CONSTRUCTION REPRESENTATIVE, HERCULES KONTOULAS, IS COMPOUNDING A SPECIFIC LIST OF ALL PROBLEMS, AND WHEN THAT IS COMPLETED, HE WILL BE GLAD TO GO OVER IT IN DETAIL.