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 22, 1998
 

The meeting of the State Contractors Board was called to order by Vice-Chairman Michael Zech at 8:40 a.m., Wednesday, July 22, 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 (Left at 9:50 a.m.)
Mr. Doug Carson
Mr. Dennis Johnson (Arrived at 9:30 a.m.)
Mr. John Lindell (Arrived at 9:30 a.m.)
Ms. Deborah Sheltra (Via telephone until 9:30 a.m.)
Mr. Dennis Nelson

BOARD MEMBERS ABSENT:

Mr. Kim Gregory

STAFF MEMBERS PRESENT:

Ms. Margi Grein, Executive Officer
Mr. Dennis Haney, 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. Bob Macke, Compliance Officer
Mr. Carmen Caruso, Investigator
Mr. Linc Dante, Investigator
Mr. Ron Ramsey; Investigator
Mr. Clark Thomas, Investigator
Ms. Betty Wills, Recording Secretary

OTHERS PRESENT:

Cari Inkenbrandt, Court Reporter, CSR Associates of Nevada; Hillel Aronson, Member, Aron Investments LLC; susan Aronson, Member, Aron Investments LLC; Rick Templeton, President, Rick Templeton Construction and Development; Lou Toomin, Secretary/Treasurer, Monterey Pools; Michael Garman, Member, Millworks, LLC; Karen Kopittke, President, Professional Star Construction; Joe Barron, Manager, Professional Star Construction; Sid Husain; Heritage Square North Association; Fred Steinbaugh, Heritage Square North Association; James Rupe, Owner, Dome Construction; John Farrell, Homeowner; and homeowners: Gena Mason, John Kitt, Mike Meyer, Don Horangic; Janet Marquez, George Bezek, Chris Christian, and Dona Hoesly.
Ms. Grein stated the agenda had been posted, in compliance with the open meeting law, on July 16, 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 learned there were 9 items on the amended agenda, each of an emergency nature.

APPLICATIONS

ARON INVESTMENTS LLC #46006 (C20 - Tiling) BOARD DECISION REGARDING USE OF

NAME - RECONSIDERATION

Hillel Aronson, Member, and Susan Aronson, Member, were present for the reconsideration. Mr. Aronson told the Board the order of the court had given Aron Investments LLC exclusive use of the name Builders Design Source and had placed a restraining order upon the other party from the use of the name.

Commercial) RAISE IN LIMIT

Rick Templeton, President, was present and notified the raise had been approved for $5 million with a $30,000 bond.

MONTEREY POOLS #43887 (C2 - Electrical Contracting) 90 DAY EXTENSION

Lou Toomin, Secretary/Treasurer, was present and notified the 90 day extension had been granted. Conversation then turned to the law requiring $1,000 or 10 percent on contracts and what was occurring with Clark County regarding regulatory licenses.
 

The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. # 1-6, 11, 13, 16, 18, 22-24, 38-39, 44, 45-47, 49, 56, 58, 61, 65, 67, 72, 79, and 81. Amended agenda: Nos. 2-6, 8, and 9.

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

MILLWORKS, LLC (B2,B3 - Residential & Small Commercial; Carpentry) APPLICATION HEARING

Michael Garman, Member, was sworn in and Ms. Mathias stated the hearing was for possible denial of the application for allegations of failure to establish financial responsibility as set forth in NRS 624.263; good character of applicant as set forth in NRS 624.265 (4); and misrepresentation of a material fact by an applicant as set forth in NRS 624.3013 (2).

The notice of hearing was entered into the record as EXHIBIT 1 and the stipulation was signed. For the record it was noted Mr. Garman had waived the 30 day notice of hearing required by NRS 624.310.

It was learned Mr. Garman had been the holder of two California contractor's licenses, both had been revoked due to substandard workmanship and claims had been paid on the license bond. The applicant had responded no to question 4 of the Nevada license application which asked if any of the principals had ever had a contractor's license denied, suspended or revoked by Nevada or any other state. Additionally, the applicant responded no to question 5 which asked if any bonding company or surety ever completed or made financial settlement upon any contract in which the principals were interested. The financial statement and credit report were referenced and it was pointed out the credit report reflected California state and federal tax liens.

Mr. Garman explained two bankruptcies, one personal in Arizona and the other for the corporation he had been associated with. He said he had nothing to do with the corporate bankruptcy but he said he did finish some of the projects and had paid many of the items himself for the sake of his two licenses, but he had not been aware the bonding company had paid out any claims. When asked why he had not answered the questions on the application truthfully, he replied he did answer truthfully as he did not know the money had been paid out nor did he know his two licenses had been revoked. He said he had relieved himself of the responsibility of the corporate license although he admitted he had not gone to the hearing against his personal licenses because he did not think it was going to be that important. After he had moved from California to Mesquite with the intent of starting over, he did not follow-up with the activity on his licenses. He then explained the events surrounding the Dikeman project, this he said was what caused his licenses to be revoked. The only thing he was certain of was he did not close the licenses. Mr. Garman then explained what he had been doing in Nevada and how he intended to satisfy his tax liens which amounted to $56,000. More discussion followed.

The Board was informed there were no requests for advisory opinions.

EXECUTIVE SESSION

WORKSHOP - ADOPTION OF REGULATION TO CHAPTER 624 OF NAC

Ms. Grein reported the public hearings would be held in August. Proposed language changes pertinent to the NAC, and related to the LLC's, was proposed.

HEARINGS

PROFESSIONAL STAR CONSTRUCTION #43167 - HEARING

Ms. Grein said there was a correction to the agenda. The license numbers were incorrect, there was only one license number and it was 43167. The hearing notice was correct.

Karen Kopittke, President; Joe Barron, Manager; Sid Husain, Heritage Square North Association; Fred Steinbaugh, Heritage Square North Association; Clark Thomas and Ron Ramsey, Investigators, were sworn in. The hearing was for possible violation of NRS 624.3014 (2) (3), misuse of license; evasion of law; NRS 624.3011 (1) (2), disregard of plans, specifications, laws or regulations; NRS 624.305, unlawful use, assignment or transfer of license; revocation of license; and NRS 624.3016, fraudulent or deceitful acts.

The hearing file was entered into the record as EXHIBIT 1 and the stipulation was signed.

Under questioning by Mr. Knapp, Mr. Thomas explained he had received the complaint when two individuals in the association, Mike Christian and Joe Parrish had notified him they believed an unlicensed contractor was working on the association's roof. On his first trip to the site, he found a tar truck there but no activity. Two days later he found Jose Barron on the premises and confirmed there was unlicensed activity at the site and a citation was issued. The work for the association included roofing and masonry wall. The results of that citation was a guilty plea was entered and 100 hours of community service was issued instead of a $500 fine. Mr. Barron had represented Pro Star Construction in that endeavor. Pro Star Construction, license #35658 had been revoked by Board action on May 1, 1996 for violation of NRS 624.3011 and NRS 624.3013. Mr. Barron had loaned his license. Mr. Thomas then detailed the contracts in the hearing file which listed Pro Star Construction's letterhead with Professional Star Construction's license number. There were a total of six of them. Additionally, there were two contracts for reroofing which consisted of modifying the roof membrane. The Clark County Building Department had confirmed both contracts required building permits. Several cancelled checks confirmed they had been signed Pro Star Construction, Jose Barron, but they had been deposited in Professional Star Construction's account. Mr. Thomas stated the implication was Professional Star was getting work for Pro Star. All records had been obtained from Professional Star Construction but no records of employment had been provided for Jose Barron. Compensation was through the profits of the company as there had been a marriage venture between Karen Kopittke and Jose Barron.

Ms. Kopittke stated she wanted to keep her license and intended to fully cooperate with the Board. She said It was never her intent to conspire or to be deceitful toward the Board. She did not deny the allegations and apologized for her actions. She said it had all been done innocently and had not caused any harm to the homeowners or to the association. All the work which had been done without permits had been performed gratis. No building laws had been disregarded. She was adamant she had never loaned her license, the people who performed the work were her employees. Ms. Kopittke said when she had applied for her license she had wanted to use the name Nevada Star but learned there was another license by that name. Therefore, she had switched to Professional Star Construction. Everything in the hearing file that said Pro Star had been abbreviated. Ms. Kopittke said she wanted to take clear steps to clarify any misunderstanding in order to keep her license and she would work towards arranging anything the Board would suggest.

Mr. Barron stated he had never used the name Pro Star when working with the association, he always used Professional Star Construction. For the purposes of IRS, Ms. Kopittke was the sole proprietor and he was an employee. He said the checking account was still in the name of Nevada Star Construction even though the name had been denied. It was then established Ms. Kopittke and Mr. Barron had gotten married in May, 1996. More questioning followed and Mr. Husain and Mr. Steinbaugh confirmed they had no complaints.

The evidentiary was closed.

FARRELL/DOME CONSTRUCTION

James Rupe, Owner, Dome Construction, and John Farrell, Homeowner, were present for the interview. Mr. Farrell explained the terms of the contract he had entered into with Mr. Rupe and the amount of money which had been paid. To date, the work had not been completed. Mr. Farrell was in dispute with Mr. Rupe over several issues: how much the project was costing, the contractor's work habits, the work itself, a lien issue, a fire which had destroyed a portion of the house and for which the contractor had already been paid for but the work not performed; a threat by the contractor, requiring the police to remove the contractor from the job site. When asked if he would allow Mr. Rupe to come back and finish the project, Mr. Farrell said yes but only if Mr. Rupe were to finish the job up to specification and up to par.

Dialogue was exchanged to help Mr. Farrell understand what the Contractor's Board could do and what would have to be settled through the court system.

Mr. Rupe then explained how he had gotten involved in the project and the work Mr. Farrell expected Mr. Rupe to perform for a certain amount of money, $11,410. Mr. Rupe said he had not expected to put in any fixtures, he was merely to rough everything in. But from the beginning, Mr. Rupe was not sure if he could perform the project for the amount Mr. Farrell was willing to pay. Nonetheless, he had entered into a written agreement with Mr. Farrell as a favor. As he became more involved, he learned there were no plans, he had to draw them up; the county said a window would have to be installed in one of the rooms; footings had to be installed; there were just a host of items he had been encountered. These all added to the cost of the project. Change orders were provided but Mr. Farrell had refused to sign them. Discussions over money and the work which was expected ultimately led to their final altercation.

More questioning followed before the interview was closed. Mr. Johnson asked Ms. Grein to set the item up for a board hearing, to have it fully investigated, and to move forward with it. Mr. Haney was to review everything prior to being sent out.

NEVADA STAR DEVELOPMENT #31538 - HEARING

MIRAGE DEVELOPMENT CORP. #46020 - HEARING

In the matter of Nevada Star Development, the hearing was for possible violations of NRS 624.301, abandonment or failure to complete or prosecute diligently a project for construction, willful failure to comply with the terms of the contract or written warranty; NRS 624.3011, disregard of plans, specs, laws or regulations, failure to respond to a claim arising out of a constructional defect; NRS 624.3012, diversion of money, failure to pay for material and services; NRS 624.3017, substandard workmanship; NRS 624.3013, failure to keep records and maintain bond, misrepresentation, failure to establish financial responsibility or comply with the law or regulations of the Board; and NAC 624.720, notice of impaired financial responsibility or violation of the law. The notice of hearing had been mailed certified mail on June 22, 1998 to the address of record. The record of receipt had been received on June 26, 1998.

The contractor was not present for the hearing. The hearing file was entered into the record as EXHIBIT 1 and the following witnesses were sworn in: Bob Macke, Compliance Supervisor; Carmen Caruso, Ron Ramsey, Linc Dante, Greg Mincheff, Investigators; and homeowners: Gena Mason, John Kitt, Mike Meyer, Don Horangic; Janet Marquez, George Bezek, Chris Christian, and Dona Hoesly.
 

JOHN KITT: Mr. Kitt had taken possession of his home in Sunset Estates on March 1, 1997. The people he had dealt with was Mirage Homes but he had found out later the builder of record was Nevada Star. Mr. Kitt had developed a list of items needing repair in his walk-through which had been directed to Paul Deerheart of Powerhouse Construction, the manager for Nevada Star.. Other items soon became apparent as time passed and the builder was notified. Little response was rendered and only cosmetic items were addressed. Mr. Kitt's first letter had been written in November and the last time he had seen anyone was in March, 1998. Mr. Kitt then itemized the things that still needed to be corrected. Three items had been validated by a board investigator.

DONALD HORANGIC: Mr. Horangic took possession of his home on May 9, 1997. At that time he believed the builder of record was Mirage Homes. He learned it was Nevada Star when he complained to the board. Mr. Horangic said he had a list prior to his walk-through because his house had failed inspection. After he took possession of the house, when he notified the builder of additional items needing correction, he was only given promises they would be corrected. Powerhouse Construction had told him they would not fix the problems because they had not been paid. The last time anyone had been on his property was about a month ago and they only attempted to do cosmetic repairs and those they did poorly. He then stated what items had been validated by the board. He said there were no liens on his home. When an administrative meeting had been held at the board office no representative for Nevada Star had been present and, as of this day, he had not been able to locate them. Mr. Knapp confirmed the board was also unable to locate them. Mr. Horangic said there were six remaining homes in the development to be completed, but the last contact with the company had been a month ago.

GEORGE BEZEK: Mr. Bezek explained his dealings had been with an on-site real estate person, Rebecca Beaker. He had taken possession of his home on April 2, 1997. Before and during his walk-through all discrepancies had been documented and made part of the contract. Mr. Bezek had sent the builder a certified letter indicating what the problems were. It was December, 1997 when he contacted the builder in writing. Several items had been corrected but nothing comprehensive. The last time anyone had been on the property was in January, 1998. He said there was a list in his file listing what items had been validated by the board. One of the items which had caused a major problem was with the plumbing. A piece of clay or rock appeared to be stuck in the drain line, taking two bathrooms out of service. It had cost him $700 to correct. Additionally, he had to have one of the air conditioners replaced and now a second one had gone out. Mr. Bezek said he had also attended an administrative meeting at the Contractors' Board but no one had been present to represent Nevada Star. There were no liens that he was aware of on his home.

MICHAEL MEYER: Mr. Meyer said the house he purchased had closed on September 5, 1997. He had had two separate walk-throughs. One with Rebecca Beaker with Realty Excel and another with someone named Chris, who had represented himself as an agent or general foreman for Powerhouse Construction Company. He had created a list of the items needing correction during his walk-through and, thereafter, he had added substantially more items to that list. Mr. Meyer said he did not learn who Nevada Star Development was until October 9, 1997. All of his contacts had been with Mirage Development. During the middle of his transaction, Rebecca Beaker had been fired and the office had been closed down. After that he lost all contact with her. It was not until he pulled the city records and the permits that he discovered a company he had never heard of. Ms. Beaker had provided Mr. Meyer with some warranty papers, but when the companies had been contacted they half-heartedly ignored Mr. Meyer. Nevada Star never really responded to any of the complaints. The first major complaint was the kitchen sink did not drain. It was later discovered the piping was completely blocked. The last time Mr. Meyer saw anyone from Nevada Star was in the middle of May. The items which had been validated were then stated. Another major item was with the heating and air conditioning. A mechanical engineer had looked at the system and said the house had not been designed correctly for both heating and air. It was going to take $1,550 to make the corrections. There were no liens on the house.

JANET MARQUEZ: Ms. Marquez took possession of her home on September 15, 1995. In her walk-through she had noted certain items which had then been provided to the builder. Initially, the response had been good. Someone by the name of Gary had acted as the customer service representative for Powerhouse Construction and he always fixed the small problems. After Gary left the company, there had been no response. In June of last year there was water leakage in the laundry room. It wasn't until October when someone by the name of George came out and cut a hole in the wall around the electrical outlet. It was wet, the carpet and linoleum were ruined. George had told Ms. Marquez he would be back to fix it in two weeks after the area had dried. After two weeks Ms. Marquez contacted George and was told the carpet and linoleum was on order. She never heard anything further from George and, to date, nothing had been corrected. There were no liens on the property and no one responded to the warranties.

DONA HOESLY: Ms. Hoesly took possession of her home on July 11, 1997. At that time she did not know who the builder was. She subsequently learned the builder was Nevada Star Development. Problems had been identified in the walk-through but communications to get them corrected broke down in August. She then detailed what items needed correction. Her biggest concern was the block wall which had begun to fail in December of 1997. The last contact Ms. Hoesly had with anyone from Nevada Star was in March, 1998. There had been liens on the property when she took possession. She later found out there were a couple of $100,000 liens on her lot as well as three or four others. Ms. Hoesly said she had paid $400 for an engineer's report which indicated the materials used in her house had not been according to specification.

GENA MASON: Ms. Mason stated she had taken possession of her house on July 30, 1997. She, too, had prepared a list of items needing repair in her walk-through. Initially, when her family first moved in someone by the name of Roy came to take care of things. Then it was months before anyone came out again but only after she went pounding on their trailer door. Thereafter, someone by the name of George came out once in a while. All of this took place over a period of a year. She then described the items validated by the board. She said she attempted to contact Nevada Star three weeks ago because she had developed a plumbing leak. She had been unable to reach anyone so she hired a plumber to repair it. There was a lien from Birman Drywall and Painting for $900. The builder had the contractor come in to fix cracks in the ceiling and walls but the drywall company had never been paid. She then confirmed she too had received a warranty.

Mr. Johnson asked the investigators, as a group, if there were any problems with what the witnesses had testified to. There were none. Testimony stood as taken. When Mr. Knapp was asked if a financial statement had been received, he replied no. the evidentiary was then closed.

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 Acting Chairman Johnson at 5:14 p.m.

Respectfully Submitted,
 
 

Betty Wills, Recording Secretary
 
 
 
 

APPROVED:
 
 
 
 

Margi Grein, Executive Officer
 
 
 
 

Michael Zech, Vice-Chairman Dennis Johnson, Acting Chairman