Kenny C. Guinn Governor MEMBERS KIM W. GREGORY Chairman DOUG CARSON DENNIS K. JOHNSON JOHN LINDELL DENNIS F. NELSON DEBORAH WINNINGHAM SHELTRA MICHAEL ZECH

RENO 9670 Gateway Drive, Suite 100 Reno, Nevada 89511 (702) 688-1141 Fax (702) 688-1271 Investigations (702) 688-1150 LAS VEGAS 4220 So. Maryland Parkway Building D, Suite 800 Las Vegas, Nevada 89119 (702) 486-1100 Fax (702) 486-1190 Investigations (702) 486-1101

MINUTES OF THE MEETING

JULY 16, 1998
 

The meeting of the State Contractors Board was called to order by Vice-Chairman Michael Zech at 8:37 a.m., Thursday, July 16, 1998, State Contractors Board, Reno, Nevada. Exhibit A is the Meeting Agenda and Exhibit B is the Sign In Log.

BOARD MEMBERS PRESENT

Mr. Michael Zech - Vice-Chairman
Mr. Doug Carson
Mr. Dennis Johnson
Mr. John Lindell
Ms. Deborah Sheltra (Arrived at 10:40 a.m.)

BOARD MEMBERS ABSENT

Mr. Kim Gregory
Mr. Dennis Nelson

STAFF MEMBERS PRESENT

Ms. Margi Grein, Executive Officer
Mr. Robert Griffy, Legal Counsel (Haney, Woloson & Mullins)
Ms. Nancy Mathias, Licensing Administrator
Ms. Kathy Stewart, Licensing Supervisor
Mr. Bill Rizzo, Investigations Administrator
Mr. Mike Maloy, Director of Investigations
Mr. Gary Leonard, Investigator
Ms. Betty Wills, Recording Secretary

OTHERS PRESENT:

Kris Bokelmann, Court Reporter, Sierra Nevada Reporters; Larry Hunt, Owner, P & L Landscape & Gardening; Greg Bischoff, President, Suncrest Builders Inc.; Phil McVey, Branch Manager, Simplex Time Recorder Co. Norman C. Newblom, Ridgecrest Development Corporation; Barry N. Lease, Owner, Ridgecrest Development Corporation; Thomas Buyak, Owner, TNT Construction; Jack Marcarelli, CPA representing TNT Construction; Richard Wright, Wright Way Builders; Brian Gracely, Commercial Structures; Martin Giudici, Owner, American Ready-Mix; and Michael Sullivan, Treasurer, American Ready-Mix.

Ms. Grein affirmed the agenda had been posted, in compliance with the open meeting law, on June 10, 1998, by investigator John Sapp, at the Washoe County Court House, Washoe County Library, Reno City Hall and in each office of the Board in Las Vegas and in Reno.

When a motion to approve the minutes of June 24, and June 25, 1998 was called for, Ms. Grein pointed out there was an error in the June 25, 1998 minutes. On page 8, in the first paragraph under Precision Builders Inc, the first violation should have read NRS 624.3015 (2).

APPLICATIONS

P & L LANDSCAPE & GARDENING (C10 - Landscape Contracting) NEW APPLICATION/

BOARD DECISION

Larry Hunt, Owner, was present for the Board decision. Ms. Stewart stated Mr. Hunt’s attorney had not yet arrived. Mr. Hunt had previously held two Nevada licenses. Both had been revoked in 1990. He admitted he had not attended the hearing, stating his reasons why. Primarily, it had been a bad time in his life. He had opened up two retail stores and both had failed. He had felt the Board would not take any action against him as he did not believe he had done anything inappropriate. Having since read the transcripts, he now wished he had attended. Discussion then focused on the events which had led to the revocations and why Mr. Hunt had not cared enough to attend the hearing. Thereafter, Mr. Hunt said he was currently working as a Risk Manager for a health care corporation and planned to return to landscaping full time, next year when he could advertise in the yellow pages. He had absolutely no intention of returning to the retail business.
MR. CARSON MOVED TO DENY THE APPLICATION FOR A LICENSE DUE TO THE PAST HISTORY OF THE LICENSEE.

The motion died for the lack of a second. Discussing the matter further, Mr. Johnson stated he would like to see a license issued but to impose a six month probationary period so as to the monitor the license. Mr. Lindell agreed but said he would prefer the probationary period be extended to one year. As the complaint history was addressed, Mr. Hunt stated he did not have a problem with the probationary period, rather, his problem was with some of the allegations which had been made. He was not familiar with any positive findings against him. His bond had been returned to him without any attachments, liens, or outstanding debts for the landscaping business.. Mr. Hunt, once again said he wished he had been present for his hearing as there was an explanation for the Aardvark issue as well. Mr. Lindell then suggested Mr. Hunt should have the opportunity to address each of the original charges.

RAISE IN LIMIT/BOARD DECISION

Greg Bischoff, President, was informed the one time raise in limit had been approved for $350,000 if required.
 
 

SIMPLEX TIME RECORDER CO. #16366 (C2 - Electrical Contracting) CHANGE IN

QUALIFIER

Phil McVey, Branch Manager, was present and informed the change of qualifier had been approved, and the license reinstated.

The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. # 1, 3-6, 9, 13-16, 24, 26-29, 33-34, 38-40, 42, 45-46, 48, 53-55, 57-60, 63, 66-67, 69-73, 75-76, 81, 85, 86, 87, 92-94, 96-99, 103, 106-107, 113, 118, 121, 128-129, 131, 133, 135 and 137. Amended agenda: Nos. 1, 3, 4, 6-7, 12, 14-16, 18, 23-24, 26, 28-29, 32, and 34-35..

RIDGECREST DEVELOPMENT CORPORATION - (B2,3 - Residential & Small Commercial;

Speculative Building) APPLICATION HEARING

Norman C. Newblom, and Barry N. Lease, Owner, were sworn in. The hearing was for possible violation of NRS 624.263, failure to establish financial responsibility. The hearing notice was entered into the record as EXHIBIT 1 and the stipulation was signed. The Board was then furnished an indemnity agreement dated February 2, 1998 and a current financial statement.

When Mr. Lease was asked if he wanted to close the hearing to discuss financial matters, Mr. Lease replied no. Thereafter, a financial discussion followed wherein his past due child support was considered.

Mr. Newblom spoke in favor of Mr. Lease, saying he had dealt with Mr. Lease for over a year. Mr. Lease had done a marvelous job on a house Mr. Newblom had hired him to build and Mr. Newblom found him to be a man of good character. Mr. Newblom was now going to have Mr. Lease build a spec home but he wanted him to have a contractor's license. Mr. Newblom indicated he had no problem with the financial aspect because he intended to control all the finances. Mr. Lease would do the building but Mr. Newblom would pay all the bills, however, Mr. Newblom did not want to indemnify the license.

Mr. Zech suggested Mr. Newblom apply for a license with Mr. Lease as the qualified employee. Mr. Newblom agreed.

TNT LANDSCAPING - (C10 - Landscaping) APPLICATION HEARING

The hearing was for possible violation of NRS 624.263, failure to establish financial responsibility. Thomas Buyak, Owner, was sworn in along with Jack Marcarelli, CPA. The notice of hearing was entered into the record as EXHIBIT 1, and the stipulation was signed.

Mr. Marcarelli stated he had finished a financial statement for an interim period for six months for the sole proprietorship and he offered a copy to the Board for review.

When Mr. Buyak was asked what size jobs he intended to perform, he answered around $20,000 to $30,000. The one time raise in limit was mentioned to him but he said he had already been made aware of it. Mr. Buyak stated his financial statement represented his activity performing maintenance work.

CITY OF ELKO BUILDING DEPARTMENT - Microtel Motel, Elko, Nevada

Brian Gracely, Commercial Structures, Richard Wright, Wright Way Builders, were present for the advisory opinion. Mr. Becker, Elko County building Department was unable to be present.

The current project under review was for $1,400,000. Wright Way Builders' contract was for $146,000, within its $150,000 limit. The contract was for foundation, setting, siding, roofing and interior patchwork. The plumbing, electrical, sprinkler and underground were separate contracts. The City of Elko was concerned that since the whole project was $1,400,000 and the contractor's limit was only $150,000, how would the consumer be protected for the full amount if there was some kind of disaster or defect? The bond would not cover it, therefore, it would become a liability insurance question. Mr. Maloy said he felt the contractor was within his limit.

It was then determined Wright Way would be acting in the capacity of a construction manager for the whole job. Discussion then followed wherein it was suggested the contractor apply for a one time raise in limit to $1,400,000, allowing him to serve as the general on the project. The City of Elko was to be notified of two things: one, Wright Way Builders could do the portion of work it was qualified to do but it could not act as the general contractor or construction manager with its current license limit; and, two, Wright Way was applying for a one time raise in limit to $1,400,000 and the Board would act on it in its next meeting on July 22, 1998, allowing the contractor to act as the general contractor or construction manager on the project. Dialogue next occurred regarding owner purchase of the modular units, justifying that cost when pulling permits, and NRS 627.

HEARINGS

HELP-U-SCAPE #25524 - HEARING (Continuation of 4/8/98 Hearing)

Michael Spears, Owner, was present for the hearing. The complainant Jerry McKissack was not present.

Mr. Maloy presented the Board with a copy of a letter he designated EXHIBIT A. It was a settlement agreement between Mr. Spears and Mr. McKissack. The letter was entered into the record as designated. Mr. Maloy said due to the extreme bitterness between the two parties, it was determined a financial settlement was more preferable than trying to get the work done. A $2,000 cash settlement had been made and accepted.

The hearing was for possible violation of NRS 624.3012 (2), willful or deliberate failure by any licensee or agent or officer thereof to pay any moneys when due for any materials or services rendered in connection with his operations as a contractor; and NRS 624.3013 (3), failure to establish financial responsibility.

Martin Giudici, Owner, American Ready-Mix; Michael Sullivan, Treasurer, American Ready-Mix; Greg Dean, Treasurer, Dean Construction Corporation; and Gary Leonard, Investigator, were identified and Ms. Sheltra declared she knew Mr. Sullivan socially but she did not believe it would affect her ability to be fair. Their was no objection to her statement. Thereafter, the hearing notice was entered into the record as EXHIBIT 1, the witnesses were sworn, the stipulation was signed, and a requested financial statement was submitted.

Mr. Maloy asked Mr. Giudici to explain his complaint which had been filed with the board. Mr. Giudici explained at the time he had filed the complaint there had been an outstanding balance of $4,328.00 as of September 30, 1997. To date, no payments had been made on the outstanding amount, which he said was more now because of finance charges and which covered deliveries of concrete to various locations. The majority of the first invoice had been paid but a portion of it remained outstanding as well as three more invoices. Mr. Sullivan explained numerous attempts had been made to Dean Construction by telephone and in December, 1997, American Ready-Mix had received a proposed settlement on the outstanding balance. The proposal had been for a payment of $500 per month until a total of $3,000 had been paid, beginning February 1, 1998. American Ready-Mix rejected the offer because they did not feel it was an adequate offer of settlement. When asked if there had been some dispute regarding the quality of the concrete, Mr. Sullivan said the dispute had been on a different invoice but that invoice had been paid. Mr. Dean had contended the batch of concrete on that invoice had been bad. There was no contention regarding the concrete delivered on the outstanding invoices.

Mr. Dean explained 95 Cowhide was what was in dispute. All previous invoices had been paid except for $156 on one of the invoices now listed as outstanding. The other three invoices that followed that invoice totaled what it had cost Dean Construction Corporation to complete 95 Cowhide and have the work repaired. The concrete had to be jackhammered out and replaced. The invoice for the delivery of that concrete had been paid but American had been notified of poor delivery, hot concrete, and the replacement of that concrete. Nevertheless, American never resolved or credited out the amount from the invoices prior to or after that one job. It was decided then not to pay the next three invoices.

Dialogue then focused on the job at 95 Cowhide, hot concrete, timely delivery, and the settlement agreement offer. Mr. Zech then clarified for the Board, the issue was can the contractor withhold the money on the projects he did and for which he got paid?

When asked if the two parties would be interested in working out an agreement, both agreed and the Board recessed for five minutes.

When the hearing resumed, the Board learned the two parties had reached an agreement.

MR. JOHNSON MOVED TO DISMISS THE CHARGES.

Ms. Mathias explained the matter was a denial of an application for failure to establish financial responsibility and misrepresentation. The Board had granted one final continuance to Mr. Garrett and had advised him to be present for the hearing. Mr. Garrett was not present. Ms. Mathias asked for a motion to withdraw the application.

No one from the general public was present to speak for or against any items on the agenda.

There being no further business to come before the Board, the meeting was adjourned by Vice-Chairman Zech at 3:30 p.m.

Respectfully Submitted,
 
 

Betty Wills, Recording Secretary
 
 
 
 

APPROVED:
 
 
 
 

Margi Grein, Executive Officer
 
 
 
 

Michael Zech, Vice-Chairman