MINUTES OF THE MEETING

MARCH 9 1999

The meeting of the State Contractors’ Board was called to order by Chairman Kim Gregory at 8:38 a.m., Tuesday, March 9, 1999, State Contractors’ Board, Reno Nevada. Exhibit A is the Meeting Agenda and Exhibit B is the Sign In Log.

BOARD MEMBERS PRESENT:

Mr. Kim Gregory - Chairman

Mr. Dennis Johnson

Mr. Dennis Nelson

Ms. Deborah Sheltra

BOARD MEMBERS ABSENT:

Mr. Doug Carson

Mr. John Lindell

Mr. Michael Zech

STAFF MEMBERS PRESENT:

Ms. Margi Grein, Executive Officer

Mr. David Reese, Legal Counsel (Cooke, Roberts & Reese)

Ms. Nancy Mathias, Licensing Administrator

Mr. Bill Rizzo, Investigations Administrator

Ms. Kathy Stewart, Licensing Supervisor

Mr. George Lyford, Director of SIU

Mr. Jack Edstrom, Investigator

Mr. Gary Leonard, Investigator

Mr. John Sapp, Investigator

Ms. Betty Wills, Recording Secretary

OTHERS PRESENT:

Ms. Grein stated, in compliance with the open meeting law, the agenda had been posted on March 3, 1999, by Mike Maloy, Director of Investigations, 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.

It was learned there were 23 items on the amended agenda. Each item was of an emergency nature. Additionally, there was also unfinished business remaining from the last Las Vegas meeting and the Legislative discussion was moved to the Executive Session at 11:00 a.m.

Mr. Gregory called for a motion to approve the minutes of January 26, February 9, and February 23, 1999.

MR. JOHNSON SECONDED THE MOTION.

Thomas J. Hall – INTERVIEW

Thomas J. Hall, Esquire, introduced himself to the Board, saying he represented Jessica Ledbetter who had been before the board in a hearing against Creative Building Systems by Clark, former contractor’s license #12615. The licensee had been found guilty on three charges and the license had been revoked on February 12, 1997. The purpose for today’s interview was to inform the Board that Creative Building Systems by Clark was still contracting in Nevada despite the revocation of his license.

Mr. Hall then summarized his letter to the board (EXHIBIT C) and discussion occurred regarding what options were now available to Mr. Hall and what the Board itself could do. Mr. Hall indicated he had spoken with the Douglas County Sheriff about the matter and the Sheriff had taken the item to the District Attorney, but the District Attorney was reluctant to prosecute. It was pointed out to Mr. Hall it was illegal to contract without a license in the state of Nevada and it was illegal for a building department to issue a permit.

John Sapp, Board Investigator, said there were two pending investigations. In the most recent the homeowner had confirmed they pulled the permit but Creative Building Systems by Clark had been referenced as the contractor.

In closing, Mr. Gregory said the Board would be willing to cite Mr. Clark if they were able to find him. But, thereafter, the District Attorney’s office would have to follow through with prosecution. The Board directed Ms. Grein to establish a policy to notify the Board when dealing with repeat offenders.

The following motion closed the meeting to the public.

The meeting was then closed to the public pursuant to NRS 241.030 to discuss financial and other data, which is confidential under NRS 624.110 (2).

FIBERCATS (C2E – Signal Systems) NEW APPLICATION, RECONSIDERATION, BOARD DECISION

Zachary Settewongse, President, was present and informed the license application had been approved with a limit of $15,000 and a $5,000 bond.

GLENWOOD CONSTRUCTION LLC (C10 – Landscape Contracting), NEW APPLICATION, BOARD DECISION

GLENWOOD CONSTRUCTION LLC (C5 – Concrete Contracting), NEW APPLICATION, BOARD DECISION

Glen Callender, Manager and Qualifier, was present, along with Doris Lockwood, Member, Gregg Barnard, Legal Counsel, and Timothy Lockwood, Office Controller.

Mr. Gregory informed those present that the Board had requested their presence to ensure all members of the LLC understood the financial history of Mr. Callender because, as members, they would be financially responsible for any licenses that might be issued. It was then learned changes had since occurred in the principals. The original application had indicated two members whereas now there appeared to be only one. An amended application had not yet been provided but the amended articles of organization had been received, although they did not appear to be filed and stamped by the Secretary of State.

Mr. Callender confirmed there was now only one member, Doris Lockwood, who also was prepared to personally indemnify the licenses. A financial discussion then ensued.

MR. NELSON SECONDED THE MOTION.

THE MOTION CARRIED.

GRASS VALLEY HOMES #41185 (B2-Residential & Small Commercial) RENEWAL OF EXPIRED LICENSE, BOARD DECISION

GRASS VALLEY HOMES #41224 (A9,21 – Piers & Foundations,; Fencing & Guardrails [A21 to include decks]) RENEWAL OF EXPIRED LICENSE, BOARD DECISION

John Wagoner, Owner, was present and informed that both license applications for renewal had been approved conditioned upon receipt of a financial statement in 6 months.

SIERRA NEVADA SIGNS (C6 – Erecting Signs) NEW APPLICATION, BOARD DECISION.

Jay Christensen, Owner, was present and notified the license had been approved with a license limit of $50,000 and a $5,000 bond, and an FS upon renewal.

COATING TECHNOLOGIES LLC (C40 – Firestopping) NEW APPLICATION

Ms. Stewart asked if the classification code could be corrected to read, Specialty Coatings including Fire Stopping, Water Proofing, and Caulking. The Board approved the application as requested and Pat Zech, Member, was present and informed the license had been approved with a limit of $25 million and a $30,000 bond.

HUNTER ELECTRIC #38140 (C2A,G – Electrical Wiring; Residential Wiring) BROADENING OF CLASSIFICATION, ADDITIONAL QUALIFIER

Kevin Robinson, Owner, was present and notified the application to broaden the classification to a full C2 with Barry Boehner as the qualifier had been approved.

CASCADE POOLS INC. #32065 - (A10 - Commercial & Residential Pools) - RENEWAL OF EXPIRED LICENSE, BOARD DECISION

Gregory Majeroff, President, was present and notified his renewal application had been approved. Staff was directed to update the Board regarding any open complaints in 60 days.

JOHN ANDERSON CONSTRUCTION INC. #35090 - (B2 - Residential & Small Commercial) ONE TIME RAISE IN LIMIT

John Anderson, President, was present. He was informed that the one time raise in limit, which was indemnified, had been approved. A financial discussion then occurred on the one time raise in limit which was not indemnified but which was eventually approved for $900,000, payment and performance bonds if required.

CALIFORNIA DESIGN AND CONSTRUCTION LLC #48146 - (B2 - Residential & Small Commercial) ONE TIME RAISE IN LIMIT

Keith Gregory, Attorney, was present and informed the one time raise in limit had been approved for $3 million, payment and performance bonds if required.

The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. # 1, 7-10, 12, 15, 23-26, 30, 32, 35, 39, 41, 43, 46-47, 51, 53, 56-57, 59, 61, 63-65, 67, 75, 82, 89, 91, 93-94, 95, 100, 106, 110, 123, and 125. Amended agenda: Nos. 3, 7, 17 and 21.

MR. JOHNSON MOVED TO REOPEN THE MEETING TO THE PUBLIC.

A motion was made, seconded, and carried to approve all applications not discussed in closed session per staff recommendation.

CITY OF RENO - Wheatland Park Project, Bid #842

Edwin Schenk, Park Planning Manager, City of Reno, had requested an opinion as to whether the current license of Canyon Creek Construction, License #29210, subclassifications A12, 15, 16, & 19, allowed them to perform the work of construction of new park improvements including walkways, playgrounds, tree plantings and irrigation systems; removal of existing surface improvements and the reconstruction and restoration of such as required for construction, all with all appurtenant work necessary to complete work specified; electrical work; and if their current license limit allowed them to perform the work?

Mr. Schenk identified himself to the Board, along with Glen Daily, Associate Civil Engineer & Project Manager, Public Works Department, and Sam Nevis, Canyon Creek Construction. Mr. Nevis told the Board how he had put his bid together. Mr. Gregory explained the bid irregularity was the responsibility of the City. Mr. Nevis then explained when putting the bid together they had the base bid but they did not total the contract and were, therefore, not aware the amount exceeded their limit by $14,000. Discussion then focused on the statute governing bids. Mr. Gregory read into the record: "If the licensee bids or contracts outside the scope of his license or exceeds the monetary limit placed on the license, the bid or contract is void." More dialogue followed wherein the Board opined Canyon Creek Construction’s bid would be considered in excess of the license limit.

Ms. Grein provided the Board with a legislative update. Thereafter, the Executive Session was postponed until later in the day.

M W KEENEY (B2 - Residential & Small Commercial) APPLICATION HEARING

(C8B - Window Wall)

(C15A,B - Roofing & Siding)

The hearing was for possible violation of NRS 624.263, failure to meet the criteria for establishing financial responsibility; and NRS 624.265, good character. The hearing notice was entered into the record as EXHIBIT 1.

Mark Wayne Keeney, Owner, was sworn in, along with Kathy Stewart, Licensing Supervisor, and John Sapp, Board Investigator. Mr. Keeney then signed the stipulation.

Ms. Stewart explained Mr. Keeney was requesting a limit of $200,000 for the B2 license application and a limit of $250,000 each for the C8B and the C15A & B license applications. The allegations of failure to establish financial responsibility and good character were evidenced by Mr. Keeney's five prior convictions.

Mr. Sapp presented his report, which indicated Mr. Keeney had been charged four times for receiving stolen property, once for burglary, theft, and receiving stolen property, once for battery and vandalism, and twice for driving while intoxicated. Thereafter it was learned Mr. Keeney had been convicted in August, 1979 for receipt of stolen property and had received 24 months of formal probation with a $350 fine. There was a conviction for DUI in February, 1984 where Mr. Keeney had received 3 years probation and suspended drivers’ license to 1985. A second conviction for DUI had occurred in 1987 and Mr. Keeney had received five years probation and suspended license through 1990. Additionally, there were two convictions for driving with a suspended license, one in 1988 and another in 1992.

Mr. Keeney admitted he had had an alcohol problem but he had now been clean since 1989. He and his wife were very active in the program.

With reference to the allegation of financial responsibility, Ms. Stewart referenced page 17 of the hearing notice. In California, a general contractor had filed a claim against Mr. Keeney's California license bond for a project that Mr. Keeney did not complete. The general contractor had to hire another contractor to perform the work and received $4,900 from the bonding company. Ms. Stewart stated Mr. Keeney had provided the board with a current financial statement. A financial discussion followed wherein Mr. Keeney provided the Board with letters of recommendation, Ronda Keeney was sworn in, and Mr. Keeney explained the bonding company had made an error and had immediately rebonded him.

When asked what size jobs he did with his roofing license, Mr. Keeney replied $15,000 to $20,000. He also responded the largest job he did with the window wall license, was approximately $15,000 and with the B2 license, he preferred to build custom homes if possible. The license limit, the surety bond, and the one time raise in limit was then explained to the Keeneys.

MR. JOHNSON SECONDED THE MOTION.

THE MOTION CARRIED.

MR. JOHNSON SECONDED THE MOTION.

THE MOTION CARRIED.

MR. JOHNSON SECONDED THE MOTION.

THE MOTION CARRIED.

BELTRAN VELASQUEZ/VELASQUEZ LANDSCAPING #30497 - DISCIPLINARY HEARING

Beltran Velasquez, Owner, and Jack Edstrom, Board Investigator, were sworn in and the stipulation was signed. The hearing was for possible violation of NRS 624.3017 (1), substandard workmanship; workmanship which is not commensurate with standards of the trade; and NRS 624.3013 (5), failure to comply with the provisions of this chapter or regulations of the Board as set forth in NAC 624.700 (3) (A), complaints against licensee: failure to respond to a notice to correct. The hearing file was entered into the record as EXHIBIT 1.

Ms. Grein stated it was her understanding the work had been completed on the complaint as of Thursday or Friday of the previous week. Mr. Velasquez had agreed to stipulate to a settlement agreement and to plead guilty to the charges and forego the hearing. Mr. Velasquez confirmed Ms. Grein's statement. Ms. Grein added the stipulated settlement provided that the work was to be completed, a monetary penalty, and the cost of the investigation.

Mr. Edstrom confirmed he had been on the property the previous Friday to validate that the corrective work the homeowner had reported had been completed the previous Wednesday.

MR. NELSON SECONDED THE MOTION.

THE MOTION CARRIED.

EXECUTIVE SESSION (Continued)

MR. NELSON SECONDED THE MOTION.

THE MOTION CARRIED.

RENO OFFICE SUBLEASE - Discussion

The status of subleasing the Reno office space was discussed. Various avenues were explored.

Ms. Grein asked to continue the matter and a continuance was granted.

Ms. Grein suggested establishing conditions of probation. She presented for review some mandatory terms and possible conditions of what may or will be required of a licensee placed on probation.

Management policies were presented to the Board for review.

SCOTT PORTER CONSTRUCTION #40242 - DISCIPLINARY HEARING

Scott Jean Porter, Owner, and Gary Leonard, Board Investigator, were sworn in. The hearing was for possible violation of NRS 624.3015 (2), acting beyond the scope of the license: bidding to contract or contracting for a sum for one construction contract or project in excess of the limit placed on the license by the board. The hearing file was entered into the record as EXHIBIT 1 and the stipulation was signed.

Mr. Rizzo questioned Mr. Leonard who testified he had gathered information regarding a building permit taken out by Scott Porter. The permit had been applied for on October 15, 1998 in Elko. Subsequently, Mr. Porter had applied for a one time raise in limit on November 17, 1998. A signed contract had been obtained as evidence and indicated the contract had been signed on October 20, 1998 for $208,624.63. The permit had been issued on November 9, 1998. The license limit at that time was $100,000. The one time raise in limit had been denied on December 1, 1998. Subsequently, Scott Porter Construction received a permanent raise in limit on January 19, 1999. When asked how he had received the complaint, Mr. Leonard said it was when Mr. Porter applied for the one time raise in limit.

Mr. Porter explained that in the summer and fall of 1998, he had been involved in building a house for his family. Chris Jones, his brother-in-law, had asked Mr. Porter to build him a home. Mr. Porter had told him he would have to wait until Mr. Porter's own house was completed.

When his house was completed, Mr. Porter took his financial information to his accountant to prepare a financial statement in preparation for his request for a one time raise in limit. It took his accountant three weeks to prepare the financial statement but in the meantime, Chris Jones put pressure on Mr. Porter to start his home. Mr. Porter said it was difficult to find good workers in Elko but he had found two men he wanted to keep. At first, he put them to work on other projects but those ultimately ran out. So he started the project to keep them working. He said: "I realize that was my fault. I just had some pressure pushing me and I got started."

When asked what the status of the house was, Mr. Porter said he was going in for a final on Friday. When asked if he knew he was bidding over his limit, Mr. Porter replied: "Yes."

Mr. Gregory asked if any complaints had been filed against the contractor from the homeowner. Mr. Leonard said none at all. It was also determined no complaints had been filed against the contractor in the past.

The evidentiary was closed.

MR. NELSON SECONDED THE MOTION.

In further discussion of the motion, Ms. Sheltra spoke in favor of the contractor who did not have any prior complaints. She believed the one year letter of reprimand was too severe. Mr. Johnson said he was willing to amend his motion.

MR. NELSON AMENDED HIS SECOND TO THE MOTION.

THE MOTION CARRIED.

Gary Pakele, Legal Counsel for Swan Development, was present along with Steve Swanson, Partner, Swan Development; Gary Brownwell, Owner, Starlite Concrete; Kelly Morris, Manager, Starlite Concrete; and Henry & Joan Brownwell, Complainants.

Mr. Gregory recapped what had occurred in the previous hearing, stating the continued hearing was for the purpose of hearing the progress on the corrective action notice and on the money owing issue.

He pointed out that if both items were resolved the board could take further action.

Gary Leonard, Board Investigator, stated he had talked to Mrs. Brownwell on March 1, 1999. The tile and the grout had been completed but the painting had not. Mrs. Brownwell notified Mr. Leonard this very morning that Mr. Swanson was on-site painting. As of this p.m., the painting was now also complete.

Jack Edstrom, Board Investigator, updated the Board regarding the money owing situation. He said he had received a copy of a proposal by Swan Development. The proposal had been tendered but as of March 9, 1999, a letter from Starlite to Swan Development countered the offer. It required a secured loan and Starlite was not willing to reduce the amount of the loan. The letter indicated Starlite would accept $25,000 to resolve the matter. The offer made by Swan was for a reduced amount of $19,000 out of a total of $28,000 owed, to be paid over a period of 24 months at 4% interest. The payment itself amounted to approximately $804 per month.

A dialogue was embarked upon wherein the action taken against the contractor in the last hearing was reviewed; Mr. Pakele stated what it was he understood had occurred in the last meeting; and it was pointed out that Mr. Swanson had admitted to money owing, although not to a specific dollar amount.

Mr. Gregory then summarized what had occurred to date. The corrective order had been completed, the money owing had not. He said it was now necessary for the decision letter to be mailed to Swan Development. He asked that the matter be reheard in 30 days and to table the renewal application of Swan Development until the next Reno meeting.

MR. NELSON SECONDED THE MOTION.

Prior to voting on the motion, Gary Brownwell spoke to his own record keeping and to the settlement offer.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

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 Chairman Gregory at 3:00 p.m.

Respectfully Submitted,

Betty Wills, Recording Secretary

APPROVED:

Margi Grein, Executive Officer

Kim Gregory, Chairman