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

AUGUST 12, 1998
 
 

The meeting of the State Contractors Board was called to order by Vice-Chairman Michael Zech at 8:40 a.m., Wednesday, August 12, 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

Mr. Kim Gregory
Mr. Dennis Nelson

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. Mike Maloy, Director of Investigations
Mr. Bob Macke, Compliance Officer
Ms. Betty Wills, Recording Secretary

OTHERS PRESENT:

Leslie Clarkson, Court Reporter, Sierra Nevada Reporters; Colin Stevenson, Controller, L H N INC.; Steven Campbell, President, Campbell Concrete of Nevada; Ladd Kleiman, President, Fluoresco Lighting-Sign Maintenance Corp.; Mark Saul, Controller, Fluoresco Lighting-Sign Maintenance Corp.; Judy Armes, Lamps & Ladders; Susan Morvay, Qualified Employee, Rampart Construction Services; Adam Polson, Owner, Polson Tile & Marble; David Palylyk, Owner, David William Palylyk; Pete Houle, President, Nevada Concrete Construction, Inc.; Martin Giudici, President, American Ready Mix; Mike Poindexter, Vice President, Don Hoban Company; Imogene Weldi, Office Manager, Sha-Neva Trucking, Jay Langman, Don Hoban Company; and Robert Johnson, US Rentals.
Ms. Grein stated the agenda had been posted, in compliance with the open meeting law, on August 6, 1998, by Ron Carney, at the Washoe County Court House, Washoe County Library, and Reno City Hall and in each office of the Board in Las Vegas and in Reno.

Mr. Zech called for a motion to approve the minutes of July 8, July 16, July 22 and July 23, 1998.
MR. CARSON MOVED TO APPROVE THE MINUTES OF JULY 8, JULY 16, JULY 22, AND JULY 23, 1998.
 

MR. JOHNSON SECONDED THE MOTION.

In discussion of the minutes, Ms. Grein pointed out the minutes of July 23, 1998 needed to be amended to include the motion approving the recommended salary and bonuses for employees. Both Mr. Carson and Mr. Johnson amended their motions to include a revision to the July 23, 1998 minutes regarding Board action taken to approve recommended salary and bonuses for employees.
THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
 

It was next learned there were 21 items on the amended agenda, each of an emergency nature.
MR. JOHNSON MOVED TO HEAR THE AMENDED AGENDA.

MR. CARSON SECONDED THE MOTION

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
 

The following motion closed the meeting to the public.
MR. JOHNSON MOVED TO CLOSE THE MEETING TO THE PUBLIC.

MS. SHELTRA 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).

APPLICATIONS

L H N INC. #33582 (B2 - Residential & Small Commercial) BOARD DECISION - F/S UPON

RENEWAL

Colin Stevenson, Controller, was present to answer questions. The Board was informed Mr. Stevenson had been given authorization from the corporation to discuss these matters.
MR. JOHNSON MOVED TO APPROVE THE RENEWAL APPLICATION FOR L H N INC.

MR. LINDELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

CAMPBELL CONCRETE OF NEVADA INC. (C5 - Concrete Contracting) - NEW APPLICATION

Steven Campbell, President, was asked if his company was the same Campbell's Concrete currently working in Las Vegas. Mr. Campbell replied yes, indicating the company was now changing the name for liability purposes. Mr. Zech stated Campbell Concrete was a reputable company. The license was then approved for $3 million with a $10,000 bond.

FLUORESCO LIGHTING-SIGN MAINTENANCE CORP. (C2 - Electrical Contracting) - NEW

APPLICATION, BOARD DECISION

(C6 - Erecting Signs) NEW APPLICATION,

REQUESTING WAIVER OF TRADE

EXAM, BOARD DECISION

Ladd Kleiman, President, Mark Saul, Controller, and Judy Armes, Lamps & Ladders, were present for the discussion. Lamps & Ladders had filed a protest to the approval of the two license applications. The applicant was asked if he was working in Nevada without a contractor's license. Mr. Kleiman answered no and Mr. Saul explained the application process had been started earlier this year. The C2 license test had been taken and passed. The company had been subcontracting work in Nevada for sign installation but it, itself, had never been in Nevada. They had always subcontracted with reputable sign contractors to install the signs they built. Mr. Saul then related a particular problem Fluoresco was having with AutoZone jobs: they could not get the subcontractor to finish the work in a timely and professional manner, one that was acceptable to the client. In questioning, Mr. Lindell asked if Fluoresco Lighting had sold a job which included installation of Fluoresco's sign on a property. Mr. Saul answered "correct." Mr. Lindell then informed Mr. Kleiman and Mr. Saul they were contracting without a license.

When asked if Fluoresco Lighting was close to a resolve with Lamps & Ladders, Ms. Armes said a check for a portion of the amount had been received with an indication that if Lamps & Ladders were to cash it, it relinquished any rights to future claims. She added the company was small and could not afford to not cash the check. Through the legal system, it would cost Lamps & Ladders $20,000 to get the $6,000 owed them by Fluoresco. Dialogue then followed wherein Ms. Armes was asked to leave the room for the purpose of a financial review with the applicant. After the review, Ms. Armes was once again allowed to be present for further Board action.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT. (Ms. Sheltra was opposed)

After reviewing the examination issue, the following motion was offered:

D L C GENERAL CONTRACTING INC. (B2 - Residential & Small Commercial) - NEW

APPLICATION, BOARD DECISION

Keith Gregory, Legal Counsel, was present to represent Danny Cates, President, who was not present. Mr. Gregory explained how Wyoming Acid Management tied in with Mr. Cates. He also discussed the civil judgment against the license, American Construction Group, Inc. Mr. Gregory said an offer of compromise had been submitted to the IRS but, as of yet, it had not come back signed. The license was then approved with a limit of $500,000, a $30,000 bond, and an f/s upon renewal.
 

ANDYS PLUMBING & HEATING #46254 - (C1 - Plumbing & Heating) - TWO ONE TIME RAISES IN LIMIT

Andy Pudlo, Owner, was present and notified his two one time raises in limit had been approved for $100,000 and $75,000, respectively.

The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. # 2, 4, 7-10, 12-13, 16-17, 20-21, 30, 32, 35, 56-58, 61-62, 72-74, 77, 79, 80, 93, 97, 99, 102, 104-105, 107-109, 111-126, 129, 131, 135, 137, 145, 165, 169-170, 173, 177, 182, 184, 186, 190-191, 201, 204, 206-208, 210-211, 214-218, 220-223, 226, 229, 235, 237, and 239-242. Amended agenda: Nos. 7, 10-13, and 17.
 
 

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

CLUBB PLUMBING & HEATING #42893 (C1 - Plumbing & Heating) FS UPON RENEWAL,

INTERVIEW

Wayne Lawrence Koch, Owner, was not present for the interview, whereupon, the application for renewal was denied.
 

ADVISORY OPINIONS

DISCUSSION RENO SCB OFFICE RELOCATION

Mr. Maloy reported on the status of the Reno office relocation project. It was hoped the office would be completed for move-in by September 30. Mr. Reese was working with Mr. Solari in an attempt to acquire an extension of 15 to 30 days at the current location so as to allow enough time to complete tenant improvements.

AMENDED CLARK COUNTY ORDINANCE CHAPTER 6.12

Ms. Grein described the ordinance in its current form, as it had once again been amended. Dialogue then ensued.

UNFINISHED BUSINESS

Discussion next occurred regarding the probable cause panel which the Board had the ability to utilize and had adopted as procedure. Ms. Grein asked to begin using the process and was authorized to do so. Mr. Reese was asked to draft a notice to explain to the contractor that a meeting to show probable cause was not a hearing and should not be construed as such.

HEARING

POLSON TILE & MARBLE #46943 - HEARING

The notice of hearing had been picked up at the Board's Reno office by Adam Wade Polson, Owner, and was for possible violation of NRS 624.3013 (3) (5), failure to establish financial responsibility; failure in any material respect to comply with the provisions of this chapter, to wit: NRS 624.286, payment of child support; and NRS 624.3017 (5), suspension of license for failure to pay child support.

Mr. Polson was sworn in; had no objection to the hearing file being entered into the record as EXHIBIT 1; and signed the stipulation.

During the application process, this office had received a fax from the District Attorney's (DA's) office on May 21, indicating Mr. Polson was not fully in compliance in paying child support for that quarter. The order called for a monthly payment of $275. At that time, there was an arrearage of over $7,000. For the purpose of obtaining the license, on May 22, 1998, Mr. Polson had entered into an agreement with the Washoe County DA's office to pay $250 per month toward ongoing support and $25 per month toward the arrearage. On July 7, 1998, notification from the DA's office had been received indicating Mr. Polson had not abided by the terms of the agreed payment plan.

When asked if that had been the only payment made, Mr. Polson said he had proof to show another payment for $137.50 had been withheld from his last payroll check in June. His attorney had told him that as long as he was attempting to pay something, it was okay. Nevertheless, that amount had not been posted with the DA's office. Additionally, Mr. Polson said he had made the July payment late in July. Clarification followed regarding the payments and what action the Board could take in the matter. It was then learned Mr. Polson had, this day, paid the DA's office a sum of $2,000 and had entered into a new agreement to pay a monthly sum of $300. The new agreement was entered into the record as EXHIBIT 2.

For the record, Mr. Zech said he would like to see the license conditioned because it was his opinion the $2,000 in the payment plan would not be in effect if this Board had not been here. A call for a motion necessitated subsequent dialogue, especially after Mr. Johnson said he would move to dismiss the charges.

DAVID WILLIAM PALYLYK (C5 - Concrete Contracting) - HEARING (Continued from February

12, 1997)

The hearing was for possible violations of NRS 624.263 (2), failure to establish financial responsibility; and NRS 624.3013 (2), misrepresentation of a material fact.

David William Palylyk, Owner, was present, and the Board was informed the stipulation had been previously signed. The applicant was requesting a limit of $10,000. The continuance had been granted to allow the licensee to improve his financial condition. Mr. Palylyk had been directed to provide a current financial statement, evidence he had established a bank account, and a copy of the payment schedule for court ordered restitution to Sung Hi Stiebel. Mr. Palylyk had complied with the requirements. The original charge of financial responsibility had been evidenced by a filing of a Chapter 7 bankruptcy in November, 1996, discharged February 5, 1997; no bank account; and a financial statement which had been prepared prior to the bankruptcy. Mr. Palylyk also had a prior conviction for contracting without a license. That accounted for the court order of restitution. A financial discussion resulted..

The notice of hearing had been picked up at the Reno office of the Board by Bob Houle, father of Peter Michael Houle, President, and was for possible violation of NRS 624.3012 (1) (2), diversion of money; failure to pay for materials or services; and NRS 624.3013 (3), failure to keep records or maintain bond; misrepresentation; and failure to establish financial responsibility or comply with law or regulations of board. The hearing file was entered into the record as EXHIBIT 1.

Pete Houle; Martin Giudici, President, American Ready Mix; Mike Poindexter, Vice President, Don Hoban Company; Imogene Weldi, Office Manager, Sha-Neva Trucking, Jay Langman, Don Hoban Company; Robert Johnson, US Rentals; and Mike Maloy, Director of Investigations, were sworn in and the stipulation was signed.

Mr. Maloy stated he had, this day, received information that on August 4, 1998, Nevada Concrete Construction had filed for a Chapter 11 bankruptcy in federal court. All the creditors were listed in the bankruptcy. Mr. Reese stated the hearing could go forward regardless of the bankruptcy for the purpose of establishing the financial wherewithal pertaining to financial responsibility and for the purpose of protecting the health, safety and welfare of Nevada citizens.

MR. JOHNSON told the Board on November 14, 1997 the Sacramento office of US Rentals had filed a money owing complaint with the board. The initial amount was for $4,912.38. The last payment had been made on March 30, 1998, leaving a current balance of $2,425.52, including late charges and service charges but not including interest. Mr. Houle had never denied owing the money nor was any of the amount in dispute. Mr. Johnson said he did not know if Mr. Houle had been paid for any of the jobs which the amount represented. Mr. Houle then countered a payment of $400 had been paid two weeks prior leaving a balance of approximately $1,590. The Reno office had called him saying they did not know where to apply the payment. Mr. Houle had not yet called US Rentals back to tell them where to post the amount. Mr. Maloy said the Sacramento office had provided him with a current balance of $1,569.73. US Rentals was no longer doing business with Nevada Concrete.

MS. WELDI explained the Sha-Neva complaint was for outstanding invoices in the amount of $1,815.75. The company had received all but $429.75 by means of a joint check. Then the company received $33.96 from Merchants Bonding Company. The current balance was $395.96. The money owing had never been disputed by Mr. Houle. Ms. Weldi said she did not know if Mr. Houle had been paid for the jobs represented by the invoices. Sha-Neva was no longer doing business with Mr. Houle who had never contacted Sha-Neva regarding the outstanding amount.

MR. GIUDICI stated he had done business with Nevada Concrete in the past and had filed a complaint with the board on March 20, 1998 for an outstanding amount of $174,186.96. Through joint payments the amount had been reduced to an outstanding balance of $146,066.34. Nevada Concrete had never denied owing the amount. There were some disputed charges and possible over charges. Mr. Giudici did not know for certain if Mr. Houle had been paid for the jobs the outstanding amount represented. Mr. Giudici then spoke in favor of Mr. Houle saying he was a decent man, trying to work through his financial problem.

When questioned about the bond, Mr. Maloy said one bond had been paid out. Mr. Houle added a second bond by a different bonding company was current until September 19, 1998, at which time it would be canceled unless he repaid the first bonding company $10,000.

MR. POINDEXTER related a complaint had been filed for invoices pertaining to the purchase of supplies and tools from November 1997 through January 15, 1998. The original amount was $7.695.54 with interest and it remained the current balance. No payments had been made on this amount which had never been disputed. Mr. Langman added he had no complete, direct knowledge if Mr. Houle had been paid for the jobs for which the supplies had been purchased. Don Hoban Company was no longer supplying Mr. Houle with material. Mr. Poindexter said he had, just moments earlier, told Mr. Houle he would accept a small amount, $100 per week, in order to pay off the monies owed.

Mr. Johnson asked Mr. Houle what had gotten him to this hearing. Mr. Houle explained a good portion of it was taking on a state job, the Carson City prison. He said he was headed into a lawsuit with the state. More questioning occurred wherein Mr. Houle admitted he had been paid for some of the jobs the complainants had not been paid for.

Thereafter, the evidentiary was closed and a Board discussion followed. The evidentiary was reopened to ask Mr. Houle what type of work he was currently performing. Mr. Houle said he was doing subdivisions, housing tracts. He was doing foundations, flat work, and driveways. The dollar amount was approximately $9,000 to $10,000. C B and American were providing the material on an open account, joint check. Mr. Houle said he anticipated taking $20,000 projects as well. The evidentiary was once again closed.

The notice of hearing had been sent certified mail on July 1, 1998. The signed returned receipt had been received by the board on July 16, 1998. The hearing was for possible violation of NRS 624.3012 (1) (2), diversion of money; failure to pay for materials or services; and NRS 624.3013 (3), failure to keep records or maintain bond; misrepresentation; and failure to establish financial responsibility or comply with the law or regulations of the board. The hearing notice was entered into the record as EXHIBIT 1.

Carl Allen Hammer, Owner, was not present for the hearing nor were there any witnesses present. Mr. Maloy was sworn in and stated that after he had filed the citation, without any response from the contractor, a notice of bankruptcy had been received from Hammer Drywall on July 27, 1998. It indicated a Chapter 7 bankruptcy had been filed on May 13, 1998. The small amount owed BMC West had been paid but not the $3,500 owed to Copeland Lumber who had been aware of the bankruptcy but had not informed Mr. Maloy. No attempt had been made to pay Copeland Lumber who was listed in the bankruptcy. The license had been suspended and the bond had been paid out. Mr. Reese asked Mr. Maloy if he had been able to determine if the licensee had been paid on jobs for which the materials had been acquired. Mr. Maloy answered no, whereupon, the evidentiary was closed and discussion occurred regarding the best way to handle the three charges. Motions were made and retracted until the next motion was acted upon.

Mr. Genadi Chilkevitsh, President, was not present for the reconsideration. Bob Macke, Compliance Officer, explained the item had been part of a Board hearing pertaining to Nevada Star Development which had been referred to finding of facts and conclusions of law. He said at the time the action had been contemplated, the president of Mirage Development, James Jariv, had also been the president of Nevada Star. Prior to the Nevada State Contractors' Board hearing, Nevada Development removed him as president by board action. Two complaints against Nevada Development were open at the time of the suspension. Both had subsequently been closed because it had been determined the complaints should have been opened against Nevada Star or Emerald Homes, an unlicensed developer. In closing, Mr. Macke said it, therefore, appeared there was no evidence at this time to substantiate charges against Mirage Development Corp. pertaining to the summary suspension but, he added, the company was scheduled for a Board interview on August 27, 1998.

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 3:35 p.m.

Respectfully Submitted,
 
 

Betty Wills, Recording Secretary
 
 
 
 

APPROVED:
 
 
 
 

Margi Grein, Executive Officer
 
 
 
 

Michael Zech, Vice-Chairman