The mechanic actually wired in some diodes to trick the sensor into thinking that the volts aren't dropping to the voltage that triggers the warning sound. It's such a shame because it's evident that the vehicle was cared for and maintained well (other than this). I have never seen any sludge during oil changes, even when I cleaned it with seafoam (not to say that there isn't an internal issue like Fisherman indicated). Everyone that has worked on the vehicle comments on the good condition. I do agree with you on the worn out oil delivery system aplumma. All too much for me to do, maybe I can find someone to drop the oil pan for less and try the simple fix of the o-ring.
Replacing the vehicle is obviously the best option and I will be looking into that also.
I appreciate the responses, thanks!