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

JUNE 25, 1998
 
 

The meeting of the State Contractors Board was called to order by Vice-Chairman Michael Zech at 8:41 a.m., Thursday, June 25, 1998, State Contractors Board, Las Vegas, 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 (Arrived at 9:15 a.m.) (Exited at 2:38 p.m.)
Mr. Dennis Johnson
Mr. John Lindell
Ms. Deborah Sheltra


BOARD MEMBERS ABSENT:

Mr. Kim Gregory
Mr. Dennis Nelson


STAFF MEMBERS PRESENT:

Ms. Margi Grein, Executive Officer
Mr. Dennis Haney, Legal Counsel (Haney, Woloson & Mullins)
Mr. Robert Griffy, Legal Counsel (Haney, Woloson & Mullins)
Ms. Nancy Mathias, Licensing Administrator
Mr. Bill Rizzo, Investigations Administrator
Ms. Pat Potter, Licensing Supervisor
Mr. Tom Knapp, Director of Investigations
Mr. Carmen Caruso, Investigator
Mr. George Lyford, Investigator
Mr. Ron Ramsey; Investigator
Mr. Clark Thomas, Investigator
Mr. Tom Tucker, Investigator
Ms. Betty Wills, Recording Secretary


OTHERS PRESENT:

Ms. Barbara Kulish, Court Reporter, CSR Associates of Nevada; Robert Rippe, President, American Exchange Inc.; Gene Kranetbauer, VTN Engineering; William Stoddart, President, Stoddart Construction Company; Merlin Hall, Owner, Mt. Grant Electric; Phil Crenshaw, Vice President, Sound Solutions Inc.; Rick Crenshaw, Sound Solutions Inc; Dennis West, President, West Electric Inc.; Bill Stanley, Business Representative, International Union of Elevator Constructors, Local No. 18, AFL-CIO; Butch Montana, Member, International Union of Elevator Constructors, Local No. 18, AFL-CIO Brian Rathman, member, International Union of Elevator Constructors, Local No. 18, AFL-CIO; Jeb Booth, Multiple Plant Services; Mr. & Mrs. John Funk, Complainants; Adell Hebert, Homeowner; John Hebert; Homeowner; Keith Hughes, Owner, KLH Construction; Gregory S. Smith, General Manager and Qualified Employee, Precision Builders Inc., DBA Elite Builders; Bruce Becker, Landis & Staefa Inc.; Keith Penny, Landis & Staefa Inc.; Scott Freeman, Legal Counsel, Landis & Staefa Inc.; Roger Wirth, Legal Counsel, Landis & Staefa Inc.; Gary Costello, C & P Enterprises; Loy Limbaugh, Owner, B & C Trucking; and Ruth Boothe, Former Investigator.

Ms. Grein stated the agenda had been posted, in compliance with the open meeting law, on June 18, 1998, by Runners, Inc., at the Sawyer State Building, Clark County Library, Las Vegas City Hall and in each office of the Board in Las Vegas and in Reno.

It was next determined there were 21 items of an emergency nature on the amended agenda.

MR. JOHNSON MOVED TO HEAR THE AMENDED AGENDA.

MR. LINDELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

Chairman Zech called for a motion to approve the minutes of April 16, 1998, May 13, 1998, May 28, 1998, June 10, 1998, and June 11, 1998.
MR. LINDELL MOVED TO APPROVE THE MINUTES OF APRIL 16, 1998, MAY 13, 1998, MAY 28, 1998, JUNE 10, 1998 AND JUNE 11, 1998.

MS. SHELTRA SECONDED THE MOTION, DECLARING SHE HAD NOT ATTENDED THE MEETING OF APRIL 16, 1998 BUT SHE HAD READ THE MINUTES AND ACCEPTED THEM AS PRESENTED.
 

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

Mr. Johnson stated he wanted to review the May minutes later in the day, time permitting.

Ms. Grein asked the Board to approve the budget for fiscal year 98-99 which had been discussed the previous day.
MR. JOHNSON MOVED TO APPROVE THE BUDGET FOR THE FISCAL YEAR 98-99.

MR. LINDELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
 

It was next decided to hold a two day meeting in July in Las Vegas only if the agendized items exceeded what could reasonably be heard in one day. Staff introductions followed.
MS. SHELTRA MOVED TO CLOSE THE MEETING TO THE PUBLIC.

MR. JOHNSON SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
 

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).

APPLICATION HEARINGS

AMERICAN EXCHANGE INC. - NEW APPLICATION/RECONSIDERATION/BOARD DECISION

Robert Rippe, President, and Gene Kranetbauer, VTN Engineering, were present for the review. Mr. Rippe indicated he had brought with him a personal financial statement and that he was willing to indemnify the corporation. Questioning followed wherein the bankruptcy Mr. Rippe had been involved in along with Mesquite Development was discussed. Mr. Rippe said he had assumed all the debt from that bankruptcy. Mr. Kranetbauer spoke as a character witness for Mr. Rippe, saying Mr. Rippe had paid back the majority of the bills which had mostly been owed to VTN Engineering. Lewis Homes, who now owned the property, had paid the balance. Mr. Rippe stated he was financially responsible. He did not walk away from anything. He was willing to put everything he owned on the line to acquire a license, adding his basis for the application was to help remedy and to complete what he had started.

Mr. Lindell stated he would not approve issuing a corporate license, but if Mr. Rippe was willing to amend his application to a sole proprietorship, Mr. Lindell said he would be willing to consider it. It was pointed out the financial statement was not CPA prepared. Mr. Rippe said he was willing to go on the basis that the financial statement was certified and if there was one thing wrong on it, he would waive the application.

MR. LINDELL MOVED TO ISSUE A LICENSE AS A SOLE PROPRIETORSHIP FOR $250,000 WITH A $20,000 BOND. A CPA PREPARED FINANCIAL STATEMENT WAS TO BE FURNISHED WITH THE PERSONAL INDEMNIFICATION.

MR. JOHNSON SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

The one time raise in limit was then explained to Mr. Rippe.

STODDART CONSTRUCTION COMPANY #44807 - LICENSE RENEWAL/FINANCIAL REVIEW/BOARD DECISION

William David Stoddart, President, was present to answer questions pertaining to the financial review and the bond. Mr. Zech asked Mr. Stoddart if he would supply a letter from C & P Trucking indicating there was only an outstanding balance of $6,000 remaining to be paid and it was to be paid out of the next draw from the developer.

MR. JOHNSON MOVED TO RENEW THE LICENSE UPON RECEIPT OF THE BOND RIDER AND TO REQUIRE A FINANCIAL STATEMENT IN SIX MONTHS.

MR. LINDELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

STATEWIDE ROOFING - NEW APPLICATION

Dan Keeler, Qualified Employee for the trade, explained he was only present for the Board's decision. He was questioned regarding work he had performed in the state of Oregon which had given rise to a workmanship complaint.

MR. LINDELL MOVED TO ISSUE A PROBATIONARY LICENSE FOR SIX MONTHS FOR $100,000 WITH A $20,000 BOND. AT THAT TIME, THE LICENSE WOULD BE REVIEWED FOR FINANCIAL INFORMATION AND WORKMANSHIP COMPLAINTS. IF THERE WERE NO COMPLAINTS, THE LICENSE WOULD BECOME PERMANENT.

MR. JOHNSON SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT. MT. GRANT ELECTRIC - NEW APPLICATION/BOARD DECISION

Merlin Hall, Owner, was in attendance as was George Lyford, Investigator. A financial discussion was entered into, whereafter dialogue occurred regarding a robbery Mr. Hall had committed. Mr. Hall presented a letter from the Mineral County Sheriff's office and Mr. Lyford was asked to review it.

MR. LINDELL MOVED TO ISSUE A C2 LICENSE FOR $30,000 WITH A $10,000 BOND AND A FINANCIAL STATEMENT UPON RENEWAL.

MR. JOHNSON SECONDED THE MOTION.

When Mr. Lindell asked to include a follow-up call to confirm the letter Mr. Hall had presented, Mr. Lyford said one option the Board could look at was Mr. Hall had the ability to return to the Sheriff's office or the Nevada Highway Patrol and submit his fingerprints to the system, thereby giving the Board an update of any arrests or convictions outside of the known robbery from 1990 onward. Mr. Hall said he had just been finger printed the day before by the Fifth Judicial District, Juvenile Probation Department. Mr. Lyford was then asked to get a copy of the fingerprint report for verification.

The motion was amended by both Mr. Lindell and Mr. Johnson to include verification of Mr. Hall's current status of arrests or convictions.

THE MOTION CARRIED WITH MS. SHELTRA OPPOSED. SECURITYLINK FROM AMERITECH INC. - NEW APPLICATION/BOARD DECISION

Gerald Paul Brodeur, Qualified Employee, and Dan Zakhos, Retail Manager, West Coast, were present and notified the license had been approved for $1 million with a $20,000 bond.

VRG CONSTRUCTION COMPANY #37232 - ADDITIONAL QUALIFIER/OFFICER CHANGE

Stephen Biagiotti, President, was present and notified the additional qualifier and officer change had been approved.

The remainder of the applications on the agenda were reviewed throughout the day as time allowed and discussion occurred on the following: Nos. # 4-7, 13-14, 19, 22, 24, 41, 43, 46-47, 50-54, 57, 59, 62-66, 68, 77, 79-80, 82, 97-98, 100-103, 105, 118, 120-121, and 124. Amended agenda: Nos. 2-4, 8, 11, 14-15, 17 and 19. Motions were made, seconded, and carried in each instance to open and close the meeting in accordance with Nevada Revised Statutes.

MR. JOHNSON MOVED TO APPROVE ALL APPLICATIONS NOT DISCUSSED IN CLOSED SESSION PER STAFF RECOMMENDATION.

MR. LINDELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

OPEN SESSION

INTERVIEWS

SOUND SOLUTIONS, INC. - INTERVIEW

Rick and Phil Crenshaw, were introduced and Bob Macke, Investigator, presented a staff report. Mr. Macke said he had obtained a copy of a contract between Sound Solutions, as a sole proprietor, and Circus Circus Development Corporation. The contract had been entered into in November, 1997. The contract had been signed by Richard Crenshaw on December 12, 1997 and it listed a license number of 40014. That license number belonged to Air Filter Sales and Service Company Inc. It had been licensed since 1995 as a classification C1, Plumbing & Heating. Joan and Harold Wilhoite, the owners of the license, had disavowed any knowledge of Sound Solutions and stated they had not allowed their license number to be used on the contract in question. Other contracts involved appeared to be consulting service agreements and possibly fell under NRS 624.020 (4), consulting on a construction project for a professional fee. Mr. Macke then stated questions he felt Mr. Crenshaw needed to clarify.

Mr. Crenshaw was asked if he actually had bid construction. He replied no, Dynalectric, was the electrical contractor. Sound Solutions' built racks with their own labor. The equipment was thereafter put into the racks and the wiring was loomed but the electricians had to turn it. Sound Solutions merely engineered and designed the product, pieces and parts. Mr. Crenshaw said when Sound Solutions first started with Circus Circus, they had been in partnership with Wilco and the license number they had used was Wilco's number. Harry Wilcox was the person who owned Wilco and when the license became inactive, Sound Solutions proceeded to apply for a license. Nonetheless, it was Dynalectric who did the work. Dynalectric was a union labor shop which prohibited Sound Solutions from doing any of the work. Since Sound Solutions was not a union shop they could not perform any work for Circus Circus even if they acquired a license. More dialogue was exchanged regarding the erroneous license number which had been used before Mr. Crenshaw said the purpose for acquiring a license was to allow Sound Solutions to enter into the residential theater market.

The second Mr. Crenshaw explained what the company did, saying his company designed a set of blueprints indicating speaker locations. The blueprints were then given to workers in the field who provided the conduit, they then pulled the conduit along with all the wire. The speakers were then given to the workers who had to remove them from the back of the truck because, on a union job, Sound Solutions was not allowed to take the material out of the truck. Those workers staged them and installed the speakers. Sound Solutions supervised. When asked who hired Wilco, the second Mr. Crenshaw said he paid Wilco. It was then explained to the two Mr. Crenshaws, they had contracted without a license.

MR. JOHNSON MOVED TO APPROVE THE APPLICATION FOR A LICENSE FOR $750,000 WITH A $25,000 BOND WITH A WARNING LETTER TO BE PLACED IN THE FILE PERTAINING TO THE INVESTIGATION.

MS. SHELTRA SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

WEST ELECTRIC INC #10463A - INTERVIEW

The application for a license had been presented to the Board, financial statement upon renewal, on May 28, 1998. It had been tabled for an interview pending the outcome of money owing complaints. Dennis West, President, was present to answer questions regarding a debt which was still in arbitration and for which he was still awaiting funds to pay off the rest of his suppliers. Upon discussion, Mr. West voluntarily agreed to lower his license limit to $50,000 as he was currently performing only small jobs.

MR. JOHNSON MOVED TO APPROVE THE LICENSE RENEWAL WITH A REDUCTION OF THE LIMIT TO $50,000, NO BOND.

MR. LINDELL SECONDED THE MOTION.

In further discussion of the bond, Mr. Lindell asked Mr. West if he would personally indemnify the license. He was told he would not be assuming any of the corporations past debt, only future debt. Mr. West said he had no problem indemnifying the license.

Mr. Johnson and Mr. Lindell amended their motions to include a personal indemnification stating "from this date forward," and a financial statement upon renewal.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT. ADVISORY OPINIONS
1. INTERNATIONAL UNION OF ELEVATOR CONSTRUCTORS - Local No. 18, AFL-CIO
Bill Stanley, Business Representative, Butch Montana, Member, and Brian Rathman, member, were in attendance. Mr. Stanley presented information which indicated there was a possible public safety issue involving the C7 license. He read newspaper articles which pertained to serious mishaps involving elevators. He said elevators did not always do what one thought they were going to do. There were elevator people who were trained in the classification of a C7 license who understood that, others did not. He said there had been many injuries in the state of Nevada and, nationally, in 1994, there had been 17,190 people injured on elevators and escalators and, since 1985, there had been 21 deaths. The causes ranged from falls, clothing entanglements and electric shock. He said he believed every one of the issues was preventable by having the proper people, qualified, performing that type of work. He then gave reasons why he believed qualified employees of a C7 license should be tested to determine their realm of knowledge.   MR. LINDELL MOVED TO ADOPT A TRADE EXAM FOR THE C7 LICENSE.

MS. SHELTRA SECONDED THE MOTION.

In discussion, Mr. Johnson asked Mr. Lindell to amend his motion to grandfather the existing companies in.


MR. LINDELL AMENDED HIS MOTION TO ADOPT A TRADE EXAM FOR THE C7 LICENSE BUT TO GRANDFATHER IN EXISTING COMPANIES WITH THE PROVISION IF THERE WAS ANY CHANGE IN EMPLOYMENT OR OWNERSHIP, THE QUALIFIED EMPLOYEE WOULD HAVE TO BE TESTED.

  MR. JOHNSON SECONDED THE MOTION.   THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
Mr. Stanley wanted to discuss the scope of work but was informed the advisory opinion was only directed to the life safety issue which had been acted upon. Ms. Mathias was directed to review the tests when received and to bring them back to the Board. The subclassifications would be checked to see if they were current with the trade exam. Mr. Stanley would then be noticed at that time. 2. LAS VEGAS CONVENTION AND VISITORS AUTHORITY - S3 Concourse Stairs Repair   Jeb Booth, Multiple Plant Services, stated he had been asked to be present to hear the Board's decision on the matter. His company had been one of the bidders on the job. The question was if a C4 and a B license was the proper classification for installing new epoxy cutting and nose guard on the stairs of the S3 concourse level to the S3 hall level. The answer was yes.   DISCUSSION

JOHN FUNK - Discussion

Mr. & Mrs. John Funk were present to explain certain contractors had been dumping debris on Mrs. Funk's property as well as destroying survey hubs. Mr. Funk said he wanted the Board to call the contractors to task. He wanted the property cleaned up as the cost was now upward of $50,000 to have it done. He then explained how the dumping started. Mr. Funk was informed whichever body had hired Western States was the body to whom he needed to seek relief. Mr. Zech suggested Mr. Funk take the matter to trial and if it was found that there had been a violation of Chapter 624, then the Board could act.

HEARINGS

KLH CONSTRUCTION #35275 - HEARING (Continued from 5/28/98)

Adell Hebert, Homeowner; John Hebert; Homeowner; Keith Hughes, Owner; and Tom Tucker, Investigator were sworn in. Mr. Knapp recapped the previous hearing and Mr. Tucker gave a progress report.

Mr. Tucker indicated Bob Kennedy, Senior Investigator, had been to the Hebert's house on June 23, 1998 and detailed the only thing which had been done was roofing tiles had been delivered and set on the roof. The living room and family room ceiling areas had not been painted. The patio roof leaked and there remained a leak in the water system. Mr. Tucker then detailed Mr. Hughes had hired a leak detection company out of California to perform an ultrasound test. No leak had been found.

Mrs. Hebert opined Davis Plumbing had suggested a water pressure test to determine where the leak was. She then confirmed tiles had been put up around the chimney but every time it rained the roof leaked, adding the patio was stuccoed and the water was coming through the patio roof, running down the walls of her son's bedroom and the family room. An attempt had been made to fix it once. A N C had then asked the Heberts to flood the patio roof to see if it still leaked, it did. A N C had been notified but, to date, there had been no further word from them. Mrs. Hebert said the corner of the house had been repaired but she believed it would eventually break off again because that was where the water leaked.

Mr. Hughes said, as of the last meeting, there were two items which remained to be checked. The corner of the house had already been repaired. One of the remaining items was putting the roof tiles around the chimney which he did, the other was to either do a leak detection test or whatever test Mr. Hughes thought best. He said he hired a nation-wide leak detection firm to perform the test, after which he was informed there was no leak. Concerning the patio leak, he said he had not been asked to address the patio leak in the last meeting. If it was leaking again, Mr. Hughes said he would be happy to once more send the company out to correct the problem. It was, thereafter, determined the patio leak had been in the original complaint.

Mr. Tucker validated the patio roof leak. The chimney tiles had been replaced but after running a water test, it still leaked. Discussion then focused on the possible reasons for the water system leak. The leak detection report was entered into the record as EXHIBIT 2.

In an effort to resolve the problem, Mr. Zech asked Mr. Hughes if he would be willing to run a pressure test utilizing a licensed Nevada plumbing contractor and with board investigator Tucker present for the test. Mr. Hughes agreed to do so but only if everyone was out of the house. He also agreed to fix the other items to the standard of the industry.

MR. JOHNSON MOVED TO CONTINUE THE MATTER TO THE NEXT LAS VEGAS MEETING IN JULY.

MR. LINDELL SECONDED THE MOTION.

In further discussion of the motion, it was determined the pressure test was to hold 50 lbs. of pressure for 20 minutes and was to be tested from the supply going in throughout the house. Mr. Hughes was asked to have his well contractor present for the test as well. Additionally, Mr. Hughes was to fix the patio roof leak to the satisfaction of the board's investigator, getting a water test or whatever test was needed in order to resolve the issue. THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT. PRECISION BUILDERS INC. DBA ELITE BUILDERS #42493 & 42492 - HEARING

The hearing was for possible violation of NRS 624.3015 (2), 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; NAC 624.640 (5), each licensee shall include in all bids he submits or contracts he enters into for construction work within this state any monetary limit placed upon his license; NRS 624.3013 (5), failure in any material respect to comply with the provisions of this chapter or the regulations of the board; and NRS 624.3013 (2), misrepresentation of a material fact by a licensee in connection with any information or evidence furnished the board in connection with official matters of the board. Page 2, paragraph B was stricken from the notice of hearing.

Gregory Smith, General Manager and Qualified Employee, and Clark Thomas, Investigator, were sworn in and the stipulation was signed by Mr. Smith who said he had authority to sign contractual items. The hearing file was entered into the record as EXHIBIT 1.

Mr. Knapp questioned Mr. Thomas and learned Mr. Thomas had obtained a proposal prepared by Elite Builders for work to be preformed at the Silverado Ranch Middle School. The first proposal was dated June 28, 1997 and the second was dated June 29, 1997. At that time, the monetary limit Elite builders carried on the license was $500,000. Initially, the total bid submitted to the school was $946,164. An additional proposal to perform rough framing, dated July 1, 1997 and submitted July 7, 1997, was for the sam project. It totalled $796,164. Both amounts brought the single project total to $1,742,328. A one time raise (OTR) in limit had not been submitted for the project. Mr. Thomas next confirmed Elite Builders had received two contracts for the project from Grove Construction. The first contract dated October 20, 1997 was for $365,800. On October 22, 1997 they received a second contract for $430,364. The following day a change order to the first contract had been received for $5,400. All contracts totalled $801,564. The monetary limit of the license had not been included on either the bid proposals or the contracts. Mr. Thomas stated, in checking the contractor's license file, he had found there had been a OTR denial for the Carefree Senior Center, and another for the Hacienda Middle School. Both were based on financial responsibility. Additionally, he found a warning letter dated April 16, 1997 for bidding over the limit and out of scope. Mr. Knapp referenced a second warning letter dated July 2, 1997 for bidding over the limit. Mr. Thomas then detailed the information Elite Builders had used to acquire two subsequent OTR in limits for the two projects which had previously been denied. A letter from Moore and Moore was entered into the record as EXHIBIT 2. It indicated Moore & Moore had not ever heard of one of the projects listed on Elite builders list of jobs in progress, Walmart Garden T.I.'s. Mr. Thomas said he had discussed all of the information with Mr. Smith who did not believe Elite Builders had done anything wrong. It was he who provided most of the information used in conducting the investigation.

Mr. Smith asked the board to review his letter on pages 15 and 16 of the hearing notice. He said it explained what had occurred, saying the document on page 14 should never have been released to the board. It had been produced by an accountant, a controller, who had no idea what was being bid. The numbers were incorrect, whereas some projects never bid and some were fictitious. The form had been prepared for an investor rather than for the board. Mr. Smith said the raise in limit had not been acquired from this particular item but it had been part of the packet which had been sent in to support it. No one reviewed the packet before it had been sent in to the board. Mr. Smith then proceeded to discuss what had occurred in-house leading up to the complaint. It was learned Mr. Gentile, President, was the financial backer but he did not play an active role in the business, it was Mr. Smith who operated it.

MR. CARSON MOVED TO FIND LICENSE #'S 42493 AND 42492 IN VIOLATION OF NRS 624.3015 (2).

MS. SHELTRA SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

MR. CARSON MOVED TO FIND LICENSE #'S 42493 AND 42492 IN VIOLATION OF NRS 624.3013 (5) AND NAC 624.640 (5).

MS. SHELTRA SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

MR. CARSON MOVED TO DISMISS THE CHARGE OF NRS 624.3013 (2) AGAINST LICENSE #'S 42493 AND 42492.

MS. SHELTRA SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

Penalty Phase MR. JOHNSON MOVED TO PLACE A PERMANENT LETTER OF REPRIMAND INTO EACH LICENSE FILE.

MS. SHELTRA SECONDED THE MOTION.

In discussion, Ms. Sheltra asked for a monetary penalty. Mr. Johnson did not wish to amend his motion. Ms. Sheltra withdrew her second. The motion died for a lack of a second. MS. SHELTRA MOVED TO IMPOSE A $1,000 PENALTY ON EACH LICENSE, AMENDING IT TO INCLUDE A PERMANENT LETTER OF REPRIMAND IN BOTH FILES. The motion died for a lack of a second. MR. CARSON MOVED TO PLACE A PERMANENT LETTER OF REPRIMAND INTO EACH FILE AND TO IMPOSE A $2,500 FINE PER VIOLATION.

MS. SHELTRA SECONDED THE MOTION.

Mr. Lindell stated he believed the fine was excessive. THE MOTION DID NOT CARRY. (Mr. Lindell, Mr. Johnson and Mr. Zech were Opposed) MR. CARSON MOVED TO PLACE A PERMANENT LETTER OF REPRIMAND INTO EACH FILE AND TO IMPOSE A $2,000 FINE PER LICENSE.

MS. SHELTRA SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

When asked if there was a time limit to pay the fine, the following motion was made.

MR. CARSON MOVED TO REQUIRE THE FINE BE PAID WITHIN 60 DAYS OR THE LICENSE WOULD AUTOMATICALLY SUSPEND.

MS. SHELTRA SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

LANDIS & STAEFA INC. #34729 & #44002 - HEARING

The hearing was for possible violation of NRS 624.3015 (1), acting in the capacity of a contractor beyond the scope of the license; NRS 624.3013 (2), misrepresentation of a material fact by an applicant or licensee...in connection with any information or evidence furnished the board in connection with official matters of the board; NRS 624.670 (1), a request for a One Time Raise In Limit must be received in the Board's office two (2) working days prior to the bid date, not including the date of the bid; NRS 624.3015 (2), 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; NAC 624.640 (5), each licensee shall include in all bids he submits or contracts he enters into, for construction work within this state, the number of his license and any monetary limit placed upon his license; NRS 624.3013 (5), failure in any material respect to comply with the provisions of this chapter or the regulations of the board.

Ms. Grein informed the board additional documentation had been received earlier in the day from legal counsel for the licensee. An affidavit had also been received earlier via fax. The information was distributed for the Board's review. The notice of hearing was entered into the record as EXHIBIT 1. The additional documents were entered as EXHIBIT 2.

Bruce Becker; Keith Penny; Carmen Caruso, Investigator; and Thomas Knapp, Director of Investigations were sworn in; Scott Freeman, Legal Counsel, and Roger Wirth, Legal Counsel, were identified; and the stipulation was signed.

Mr. Knapp directed his questions to Mr. Caruso who said the complaint had been opened anonymously. He told the Board what documents he had acquired for the Sand Hotel Casino project regarding alarm systems. The bid had been submitted for work which required a c41 license. Landis & Staefa had only a active C40 license at the time and it was designated for low voltage electronic temperature control work. The monetary limit was $10 million. The bid document itself had no date, but the cover letter was dated May 14, 1997. The contract, too, had no date but the agreement itself indicated a date of August 9, 1997. Landis & Staefa subsequently obtained the proper C41 license. Mr. Caruso said he had met with representatives of Landis & Staefa on June
26, 1997 to discuss what they needed to do to comply but there had also been a subsequent meeting attended by Mr. Knapp. Mr. Caruso said in the first meeting discussion focused on the bidding prior to the C41 license becoming active. Landis & Staefa had been advised the license they held was not the proper scope of work for the bid submitted. A new issue of bidding over the limit arose when the C41 license was acquired. Even with a OTR in limit the bid exceeded the monetary limit. Mr. Knapp added in the second meeting he made it very clear to Landis & Staefa that even with the acquisition of the C41 license it did not remedy the prior possible violations.

Mr. Zech clarified Mr. Knapp had been aware Landis and Staefa had a job and but did not have the right classification to do the job. Mr. Knapp agreed. Nonetheless, Landis and Staefa had been awarded the job. Mr. Caruso then added there were no license numbers or monetary limits on any of the bid or contract documents, although the documents did reflect Landis and Staefa Inc. as the bidder or the subcontractor on the project.

Mr. Freeman explained EXHIBIT 2 was a step-by-step time line of what happened. He acknowledged the errors which had been made in originally bidding the project in June, and the steps which had been taken to undue the problem and proceed properly in order to be in full compliance with the law. A full description of the problem followed. More discussion followed prior to the evidentiary being closed.

MR. LINDELL MOVED TO FIND LANDIS & STAEFA, INC. IN VIOLATION OF ALL CHARGES. THE MOTION WAS LATER AMENDED TO INCLUDE BOTH LICENSES.

MS. SHELTRA SECONDED THE MOTION AND LATER AMENDED HER SECOND.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

Penalty Phase MR. LINDELL MOVED TO PLACE A LETTER OF REPRIMAND IN BOTH LICENSE FILES FOR ONE YEAR.

MR. JOHNSON SECONDED THE MOTION.

Under discussion, Ms. Sheltra asked if a permanent letter of reprimand was more appropriate. Mr. Lindell did not agree, stating his reasons why. THE MOTION CARRIED WITH MS. SHELTRA OPPOSED. MCMILLAN CONSTRUCTION CO. #11711 - SHOW CAUSE FOR SUMMARY SUSPENSION

MCMILLAN HOMES INC. #40311 - SHOW CAUSE FOR SUMMARY SUSPENSION

Neither Thomas G. McMillan Owner, McMillan Construction Co., nor Christian B. McMillan, President McMillan Homes, were present for the hearing. Mr. Haney recommended the Board consider continuing the summary suspension until such time as the findings of fact and conclusions of law was presented to the Board.

MR. JOHNSON MOVED TO CONTINUE THE SUMMARY SUSPENSION OF MCMILLAN CONSTRUCTION CO. AND MCMILLAN HOMES INC. PENDING COMPLETION OF FINDINGS OF FACT, CONCLUSIONS OF LAW.

MR. LINDELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

STEWART CONSTRUCTION COMPANY #2052 - HEARING

The hearing notice had been hand served to Mr. Stewart and was for possible violation of NRS 624.3012 (2), willful or deliberate failure by any licensee or agent or officer thereof to pay any monies when due for any materials or service rendered in connection with his operations as a contractor, when he has the capacity to pay or when he has received sufficient funds therefor as payment for the particular construction work, project or operation for which the services or materials were rendered or purchased; NRS 626.326 (1), each contractor shall disburse money paid to him, including any interest which he receives, to his subcontractors and suppliers with 15 days after he receives the money, in direct proportion to the subcontractors' and suppliers' basis in the total contract between the contractor and the owner; NRS 624.3013 (3), failure to establish financial responsibility pursuant to NRS 624.220, 624.260, 624.263, and 624.265 at the time of renewal of the license or at any other time when required by the board; and NRS 624.3013 (5), failure in any material respect to comply with the provisions of this chapter or the regulations of the board.

The hearing file was entered into the record as EXHIBIT 1. Gary Costello, C & P Enterprises; Loy Limbaugh, Owner, B & C Trucking, Ruth Boothe, Former Investigator, and Ron Ramsey, Investigator, were sworn in and William McGimsey, Legal Counsel for Tom Stewart, was identified. The stipulation was not signed at this time and Mr. Zech declared he had been a long time friend of, and had worked in the past with, Tom Stewart. He would not be voting on the matter.

Under questioning by Mr. Knapp, it was learned Mr. Costello had provided trucking services to Stewart Construction for various projects. He normally dealt with Kevin Ruesch or one of his superintendents who would order trucks for the following day. Hand tickets were then signed by one of Stewart Construction's employees and bills were then submitted to the company on a monthly basis. This arrangement had been in place for the last five years and encompassed over $400,000 in revenue. The current balance owed to C & P Enterprises was $3,986.00. Mechanics liens had been filed on several jobs. The last payment, dated January 9, 1998 for $13,000 had been received out of a retention owing from Saxton Development. In an effort to resolve the money owing issue, Mr. Costello had attempted to contact Kevin Ruesch or his wife Julie Ruesch. He had never attempted to contact Thomas Stewart because as far as Mr. Costello was concerned Mr. Stewart was not involved in the business. The credit application Mr. Costello originally had indicated Kevin Ruesch as the owner. The last contact Mr. Costello said he had with the company was on January 9, 1998 when Julie Ruesch signed off on the Saxton Development check. Mr. Costello said he knew Julie Ruesch as the office manager and one of the owners.

Mr. Limbaugh, under questioning by Mr. Knapp, informed the Board his company provided trucking services, although he had never entered into a formal agreement with Stewart Construction. He said Stewart Construction would call him and order trucks for the next day. He then prepared a billing statement once a week. The time period involved was from January, 1997 through July, 1997 and the total amount currently owed was $49,825, the original amount owed had been $56,625. Mr. Limbaugh said he had always received promises of payment and he did receive one payment of $6,800 one month but after that it was only promises. He had only been in contact with Kevin or Julie Ruesch and Kevin had told him he was the owner. He never knew Thomas Stewart was the owner. The last contact with Stewart Construction had been approximately 6 to 8 months ago and Mr. Limbaugh said he had always been told Stewart Construction had not been paid for the jobs he had been involved with.

When the Board asked what relationship, if any, the Rueschs were to Mr. Stewart, Mr. McGimsey replied Julie Reusch was Mr. Stewart's granddaughter and Kevin was her husband.

Ms. Booth stated Stewart Construction was a sole proprietorship but was listed with the Secretary of State as a corporation with Kevin Reusch as the President, Julie Reusch as the Secretary/Treasurer and Thomas Stewart as the Director. The corporation had still been active when Ms. Booth was employed as an investigator. The corporation had attempted to file bankruptcy but it had been dismissed. The corporation and the sole proprietorship were never one entity so the bankruptcy had been dismissed. Thomas Stewart had come into the board office in the summer of 1997 desirous of removing his name from the license. He was surprised Kevin Reusch was not the owner and that he was still listed as such. He said Kevin should have taken care of all that. It had been explained to Mr. Stewart if he took his name off the license, the license would be surrendered that day as Kevin was only listed as the qualified employee. He was also informed about the money owing complaints. Ms. Booth said the corporation applied for a license but it never was issued because of two money owing complaints which had already been opened. Ms. Booth added there had never been a money owing complaint against the license until seven years ago. Thereafter, she verified the money owing complaints.

Mr. Knapp said in the hearing notice, a financial statement had been requested but, to date, none had been received.

Mr. McGimsey told the Board Mr. Stewart did not believe he had done business for the last four or five years. Mr. Stewart was physically unable to attend the hearing but he wanted it known he did not care to have a contractor's license. None of the witnesses present had contracted with Thomas Stewart who had had a stroke four or five years ago. Again, Mr. Stewart had no interest in having a contractor's license and he was not sure if people were owed money because he had not been involved in the business. Mr. McGimsey said he, himself, was sure the witnesses were owed money. There was no question Kevin and Julie Reusch owed the money but whether Mr. Stewart was involved was something for the courts to determine. Mr. McGimsey reiterated Mr. Stewart had no interest in retaining the license nor was he in any position to retain the license.

Mr. Ramsey told the Board he had checked on the addresses he had and found the latest address on Sunset Drive was vacant. There were decals on the windows indicating Stewart Construction had been at that address but was no longer there. When he checked with the leasing office, Mrs. Broad indicated Stewart Construction had moved sometime during the night or on a weekend prior to May 1, 1998. She had no knowledge of their present whereabouts. No new address had been submitted to the board and the license file continued to list an old address on So. Eastern Avenue.

Prior to closing the evidentiary, It was determined Kevin and Julie Reusch had never been served the hearing notice. The evidentiary was closed and discussion followed wherein the stipulation was signed.

MR. JOHNSON MOVED TO DISMISS THE CHARGES AND TO ACCEPT THE VOLUNTARY SURRENDER OF THE LICENSE.

MR. LINDELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

Staff was then instructed to locate Stewart Construction Inc. and to cite them as contracting without a license. Mr. McGimsey said he had an address for Stewart Construction Inc. and would make it available.

PUBLIC COMMENT

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 4:37 p.m.

Respectfully Submitted,
 
 

Betty Wills, Recording Secretary
 
 
 
 

APPROVED:
 
 
 
 

Margi Grein, Executive Officer
 
 
 
 

Michael Zech, Vice-Chairman