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 27, 1998
 
 

The meeting of the State Contractors Board was called to order by Chairman Kim Gregory at 8:50 a.m., Thursday, August 27, 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. Kim Gregory - Chairman (Exited at 3:00 p.m.)
Mr. Doug Carson
Mr. Dennis Johnson
Mr. John Lindell
Mr. Dennis Nelson (Exited at 3:00 p.m.)
Ms. Deborah Sheltra
Mr. Michael Zech

BOARD MEMBERS ABSENT:

None

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 Supervisor
Mr. Carmen Caruso, Investigator
Mr. Linc Dante, Investigator
Mr. Bob Kennedy, Investigator, Reno
Mr. George Lyford, Investigator
Mr. Greg Mincheff, Investigator
Mr. Ron Ramsey; Investigator
Mr. Clark Thomas, Investigator
Mr. Tom Tucker, Investigator
Ms. Betty Wills, Recording Secretary

OTHERS PRESENT:
 

Barbara Kulish, Court Reporter, CSR Associates of Nevada; Jack Nuckols, Owner, Applied Contractors and Applied Roofers and General Contractors; Charlie Pershall, President, Ceramic Surfaces Inc.; William Walter, President, Advanced Pool Coatings; Tom Smart, Legal Counsel, C D B Constructors, A Joint Venture; Bob Weber, Clark County Building Department; John Breternitz, Q & D Construction, representing the State Board of Architecture, Interior Design and Residential Design; Rita Lumitz, Member, State Board of Engineers and Land Surveyors; Matt Whitaker, President; Whitaker Enterprises Inc.; Craig & Viki Vaughn, Complainants; Jeff Sullivan, Management Analyst, Operations Department, McCarran International Airport; Scott G. Bugbee, President, R. W. Bugbee & Associates Inc.; Ray Cawthorn, Touchstone Development, Roger Nix, President, Touchstone Development; Donnie Tittle, Owner, Donnie Tittle Plumbing; David Spurlock, Legal Counsel, GJ's General Contractors; and William Stokes, Owner, Stokes Underground Consulting.
 

Ms. Grein stated the agenda had been posted, in compliance with the open meeting law, on August 21, 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 41 items on the amended agenda, each of an emergency nature, as well as one change which was a request for reconsideration by the City of Las Vegas regarding a roofing project.
MR. JOHNSON MOVED TO HEAR THE AMENDED AGENDA.

MS. SHELTRA SECONDED THE MOTION

THE MOTION CARRIED UNANIMOUSLY.
 

The special investigations unit was introduced to the Board.

The following motion closed the meeting to the public.
MS. SHELTRA MOVED TO CLOSE THE MEETING TO THE PUBLIC.

MS. ZECH SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.
 

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

APPLIED CONTRACTORS (B2 - Residential & Small Commercial) NEW APPLICATION, BOARD DECISION

APPLIED ROOFERS AND GENERAL CONTRACTORS (C15 - Roofing & Siding) NEW APPLICATION, BOARD DECISION

Jack Nuckols, Owner, was present for the review. Ms. Mathias indicated an investigation was currently under way and Mr. Lyford explained the reason for the investigation. The investigation had resulted in one citation being issued on July 17, 1998 for contracting without a license. That item was currently in the court system awaiting trial. It had been alleged Mr. Nuckols had performed substandard work, he had used a contract which displayed the state of Nevada contractors' seal on it, an unauthorized pocket card, a fictitious company name, and a company name he was not authorized to use. Mr. Lyford provided copies of the citation and the documents supporting the investigation. Following that, Mr. Lyford said he had received another complaint Mr. Nuckols was again engaging in the same activity. Upon interviewing the complainant, it was learned Mr. Nuckols was still using the same items mentioned earlier. The situation also revealed Mr. Nuckols was using a business card which displayed his current name as shown on his application here in Nevada, but with his California license number which is currently inactive. Mr. Nuckols was also using a second business card with the fictitious names of Claman Construction Company and Rain Guard Construction Company. Mr. Lyford said the case had not yet been submitted to the court. The whole case involved an individual by the name of Thomas Harvey who had been under investigation for one year and a half. Mr. Harvey was currently in fugitive status, with several outstanding arrest warrants. It was believed Mr. Harvey had fled the state but he was continuing to operate his business in Nevada by use of a telephone answering service. Individuals were being dispatched to perform work under these fictitious names and fictitious contracts.
 

Mr. Nuckols said he had answered an ad whereby he became an employee. The contracts and pocket cards had been furnished to him by his employer. It had been said to him he was not an employee because there was no proof he had not filled out a W4, but Mr. Nuckols stated that made him look guilty for someone else's lack of action, the employer's. For the court case, Mr. Nuckols said he had subpoenaed the local newspaper for the ad he had answered as an employee. He also indicated he had not performed any work without first touching bases with his boss, and he had never gotten paid for the work he performed. Mr. Nuckols said he knew for a fact there was a contract between Claman Construction Company and Rain Guard Construction Company because he had seen it and read it, and it was with his boss Thomas Harvey. additionally, he said he and Thomas Harvey wrote a contract, an employee/employer relationship. To the best of Mr. Nuckols knowledge Mr. Harvey still had an answering service and was possibly dispatching jobs. When asked for a copy of the contract, Mr. Nuckols said he could provide it. It was then learned Mr. Nuckols court date was October 20, 1998.

CERAMIC SURFACES INC. (C20 - Tiling) NEW APPLICATION, BOARD DECISION

Charlie Pershall, President, was present to answer questions. The Board had previously approved the application with a bid limit of $100,000 and a $20,000 bond. The applicant had then requested a reconsideration for the purpose of lowering the bid limit to $50,000. His request had been denied. Mr. Pershall explained he was willing to reduce his limit in order to work in the state of Nevada when work slowed in Utah, primarily in Mesquite, which bordered St. George, his place of business. He said it was impossible for him to bond $20,000 but he was able to bond $10,000. His jobs ranged from $20,000 to $50,000.

Richard Kerzetski, President, was present and notified the raise in limit had been approved for $4 million with no bond.

ADVANCED POOL COATINGS (A10C, D, E - Repair of Pools) - NEW APPLICATION, BOARD DECISION

William Walter, President, had made request for reconsideration regarding the Board's decision of July 22, 1998 to table the application for further investigation of the license history based on the revocation of a California license. Mr. Walter said the license had been revoked quite some time after he had left the firm. He did not find out anything about that license until the license analyst, Connie Walters, had notified him and faxed him information regarding a citation. Mr. Lindell pointed to another California license which had been issued at the time Mr. Walter left the other company.

MR. LINDELL MOVED TO ISSUE A LICENSE FOR $100,000 WITH A $25,000 bond.

MR. ZECH SECONDED THE MOTION.

Thereafter, dialogue centered on the fact the work had been performed during Mr. Walter's tenure with the company, even though the revocation did not occur until after Mr. Walter resigned. Again, Mr. Walter stated he did not know of any trouble with that individual. He only learned of it after he attempted to acquire a bond. When asked how much of a limit he needed, Mr. Walter replied $50,000 to $60,000. Board members were asked to consider a lower limit. The previous motion was withdrawn and the following motion was offered:

Tom Smart, Legal Counsel, was present and notified the application had been approved with an unlimited license amount and a $50,000 bond.

GIBBS, INC CONTRACTORS (C1 - Plumbing & Heating) NEW APPLICATION

Lloyd Gibbs, President, was present and notified the application had been approved for $10,000 with a $2,000 bond.

PLATINUM COMMUNICATIONS (C2D, E - Amplifying Systems; Signal Systems) NEW APPLICATION

Les Manalo, Qualified Employee, was present and notified the application had been approved for $250,000 with a $15,000 bond.

The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. # 1, 5-7, 9-10, 12-17, 27-29, 32-33, 37, 41, 43, 44-46, 48, 49, 52, 53, 58, 63-64, 71-76, 78, 82-88, 91, 95, 101, 103-105, 107, 113, 116, 122-123, 127, 150, and 155. Amended agenda: Nos. 1-2, 4-5, 8-11, 13-14, 16-19, 21-27, 29-30, 36, and 40.

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

ROUNDTABLE DISCUSSION

Bob Weber, Clark County Building Department; John Breternitz, Q & D Construction, representing the State Board of Architecture, Interior Design and Residential Design; Rita Lumitz, Member, State Board of Engineers and Land Surveyors, were present to discuss proposed changes to NRS 623, 624 and 625.

An in depth discussion focusing on design exemptions ensued. The purpose for changing the statutes was to include language which would allow design exemptions but at the same time provide consistent standards which would have to be met by all who acquired those exemptions, and to provide accountability. This would apply statewide, in all counties. EXHIBIT C contains the proposed changes to the statutes.

Hereafter, the Executive Session was continued until later in the day in order to address the scheduled agenda.

HEARING

WHITAKER ENTERPRISES INC. #31695A HEARING

Matt Whitaker, President; Craig & Viki Vaughn, Complainants; and Linc Dante, Investigator, were sworn in. The hearing was for possible violation of NRS 624.3011 (1C1), disregard of plans, specifications, laws or regulations; NRS 624.3017 (1), substandard workmanship; and NRS 624.3013 (5), failure to establish financial responsibility or comply with law or regulations of board. The notice of hearing was entered into the record as EXHIBIT 1 and the stipulation was signed.

Mr. Caruso entered EXHIBIT 2 into the record: an agreement between the Vaughns and Whitaker Pools, dated July 24, 1998, and the permit pertaining to the project issued by the Clark County Building Department, signed by Bob Weber, Director, dated July 28, 1998.

Ms. Vaughn stated that on July 24, 1998, Whitaker and the Vaughns had agreed to settle this dispute for $2,500. There had been a meeting wherein Mr. Whitaker had asked them what they wanted. Ms. Vaughn decided to enter into the $2,500 agreement excluding several items which were still on Mr. Whitaker's 'to do' list. Although a monetary settlement had been reached and paid to Mr. Whitaker, the Vaughn's were still unhappy with his work. Ms. Vaughn then detailed what items had not been done to their satisfaction.

Mr. Dante then verified the autofill still was not working and the grout was discolored.

Mr. Whitaker explained the pool had been up and operational for over a year before the discoloration had become noticeable, that was mainly due to the scum line. He had cleaned the pool a couple of times and everything was fine when the pool was finished. But once the pool was completed the dirt began building up. He said he did not have a problem cleaning the pool again but he wanted a board investigator there upon completion to verify the pool was in good condition. He then said if there was a problem with the autofill, he would dig it out of the ground and fix it.

Ms. Vaughn was asked if she would allow Mr. Whitaker to return to correct the two items to the satisfaction of the board's investigator. Ms. Vaughn agreed. Discussion then focused on the building department permit. Ms. Vaughn concurred with Mr. Whitaker that they were originally told no permit was needed. Mr. Caruso said he had mentioned the item to Mr. Weber who said he would investigate the discrepancy.

Jim Saxton, President, along with his attorney, Suvinder S. Ahlwalia, were present for the hearing. Ms. Grein explained the board had voted upon the concept of forming advisory committees in an attempt to reach an agreement of sorts on complaints prior to a board hearing. Jim Saxton, Inc. was the first case in which the committee had met as an informal enforcement advisory committee. It had been composed of Michael Zech, Dennis Johnson and Margi Grein. It was the committee's recommendation that, in the matter of Jim Saxton, Inc., DBA Saratoga Land and Development, the Board accept the settlement agreement as presented. Conversation followed.

Mr. Gregory called for a motion to approve the minutes of August 12, 1998.

ELECTION OF OFFICERS

In discussion, Mr. Nelson suggested the present officers be nominated for another year. Mr. Johnson opined Mr. Zech should be elected Chairman. Mr. Zech declined while indicating he was recommending Mr. Johnson as Vice-Chairman.

Mr. Rizzo stated he was still continuing with training and hiring additional people. A new investigator was starting next week. There was still one vacancy in Las Vegas and interviewing was continuing. A concentrated effort was being made to deal with the older complaints and progress was being made. Mr. Rizzo was directed to immediately ask for a financial statement on money owing complaints, allowing for a two week turn-around. If the financial statement was not provided, the contractor was to be cited.

Ms. Mathias indicated a tremendous backlog of applications was being cleaned up by using the resources in Reno. Most applicants had been corresponded with, and Training was continuing in Las Vegas.

Mr. Lyford reported his unit was now complete and initial training was in progress. The unit's new office space was expected to be complete in three or four weeks. All cases involving contracting without a license were now being processed by his department. Two fraud cases had also been opened and were currently being investigated in conjunction with the local police.

Mr. Knapp concurred with Mr. Rizzo his department was almost up to full staff and expected to be there within 30 days. Each of the investigators were carrying an average case load of 125-130 cases. As new investigators were trained, case loads were being redistributed and mandatory overtime was currently being performed. Each of the investigators were required to have ICBO certification, Mr. Knapp included, and were enrolling in community colleges to achieve that end.

Once again, the Executive Session was continued to address the regular agenda.

ADVISORY OPINIONS

KESTI ELECTRIC #34743 - HEARING

Scott G. Bugbee, President, R. W. Bugbee & Associates Inc., Ruth Boothe, Former Board Investigator; and John Delibos, were sworn in; Mr. Gregory declared he had a standing relationship with Mr. Bugbee, who had constructed his house; there was no objection to Mr. Gregory hearing the matter; and it was established the contractor, Blake Edmonson, Owner, was not present for the hearing.

The notice of hearing had been sent certified mail to the address of record on July 28, 1998. However, a return receipt had not been received. Personal service had been attempted but the address had been vacated and the phone disconnected. The hearing was for possible violation 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 624.3012 (2), diversion of money; failure to pay for material or services; NAC 624.720, notice of impaired financial responsibility or violation of law; and NRS 624.3013, failure to keep records or maintain bond; misrepresentation; failure to establish financial responsibility or comply with law or regulations of board. The license was inactive, not renewed. The hearing file was entered into the record as EXHIBIT 1.

Under questioning by Mr. Knapp, Mr. Bugbee told the Board he had entered into a contractual relationship with Kesti Electric for three contracts on December 4, 1995. There was a $60,000 line voltage contract, a $46,900 home automation contract, and a purchase order of $36,000 for light fixtures, totalling $142,900. Work stated March, 1996 and the approximate date any work was last performed was in October, 1997. At that time, the project had been 80% completed. Kesti Electric had been paid $128,462 including $21,497 in change orders. Liens had been placed on the property in the approximate amount of $10,000. The liens had been satisfied by the homeowner. Mr. Bugbee said the job had been proceeding well when he had received a lien notice without any advance warning. When Mr. Edmonton had been approached, he claimed the progress on the job was slower than what he could pay his suppliers and he didn't have the fortitude to come forward and ask for more money. Taken at his word, the lien had been satisfied. Thereafter, Mr. Edmonton had been asked to provide a complete material list of the required materials he would need to purchase in order to finish the job. If the job did go slower than anticipated, the materials would be in storage. A list was provided along with a joint check for $35,000 to purchase the remaining materials Mr. Edmonton alleged it would take to finish the job. Thereafter, work continued for several months. But then, Mr. Bugbee had been contacted by a vendor informing him there was $22,000 in overdue bills being accrued against the project. At that point, Mr. Bugbee knew something was wrong. When Mr. Kesti had been presented with the dilemma, his work slowed, and then he disappeared. When Mr. Bugbee filed his complaint with the board, he attempted to claim against Kesti's bond, only to learn he was too late. Other people had claimed against the bond. Several months after the license had inactivated for non-renewal, Mr. Kesti attempted to renew his license. At that time, Mr. Bugbee had been contacted by the board in an effort to resolve the complaint. His client was somewhat reluctant to move forward with the project but an agreement had been entered into with Mr. Kesti wherein a promissory note of $11,918.57 for the materials which had to be purchased a second time was also agreed to. This was done in order to help Mr. Kesti get his license renewed. Shortly thereafter, Mr. Kesti disappeared again. The promissory note had never been honored because Mr. Bugbee said the purpose for it was to ensure Mr. Kesti finished his work. He was to pay it off in kind trade or in cash. Mr. Bugbee said he had no idea where Mr. Kesti might be as he had been unsuccessful in contacting him. Dialogue ensued wherein Mr. Bugbee said he had received Mr. Kesti's cash bond minus legal fees. The document containing the amount of additional monies expended to complete the job, including warranty work, was entered into the record as EXHIBIT 2.

MAJESTIC HOMES, LLC #44597, #44598 - SUMMARY SUSPENSION

Greg Mincheff, Investigator, told the Board there were currently 11 complaints open against Majestic Homes. Three were money owing complaints, totalling approximately $13,000, wherein Majestic Homes had entered into contracts with owners but no work had been performed. There was approximately $120.000 worth of contracts where work was in question. Some work had been done but the rest of the money representing deposits for work to be done was unaccounted for. Majestic Homes had abandoned all projects and had left town. It was still being verified all bank accounts had been closed. The model had been abandoned, as well as the office and Mr. Robb's house. His significant other, who was part of the corporation, verified Mr. Robb had left town. She, herself, had relocated to California. The last contact Mr. Mincheff had with Majestic Homes was a phone call from Mr. Robb. That call had been traced to Florida.

It was then determined the two licenses had expired on 7/31/98 and each had a license limit of $250,000 with a $15,000 bond. The original issue date for both licenses was 7/23/97. An exchange next took place regarding the status of the projects.

Mr. Gregory and Mr. Nelson left the meeting at 3:00 p.m., leaving Mr. Zech to chair the quorum which remained.

HEARINGS

TOUCHSTONE DEVELOPMENT CORP. #43469 - HEARING

The hearing was for possible violation of NRS 624.3014 (A, B, and D), misuse of license; evasion of law; NRS 624.3013 (2), misrepresentation of a material fact by an applicant or licensee in obtaining a license, or in connection with any information or evidence furnished the board in connection with official matters of the board; NRS 624.305 (1, 2), unlawful use, assignment or transfer of license; and NRS 624.3015 (3), knowingly entering into a contract with a contractor...for work in excess of his limit or beyond the scope of 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.

Ray Cawthorn, Touchstone Development, Roger Nix, President, Touchstone Development; Donnie Tittle, Owner, Donnie Tittle Plumbing; and Linc Dante, Investigator, were sworn in and the stipulation was signed. The hearing file was entered into the record as EXHIBIT 1.

Mr. Caruso asked Linc Dante, Investigator, to describe the circumstances surrounding the complaint. Mr. Dante said the complaint had been opened on August 22, 1997 because he had received a call from the Mesquite Building Department indicating they had documents representing the signature of Donnie Tittle but which had not actually been signed by him. Copies were then furnished to Mr. Dante who checked the signatures with the license file and found the signatures were different, including the misspelling of the name in several instances. The Industry Regulation complaint was thereafter opened. All building permits pulled by Touchstone showed Donnie Tittle Plumbing as the plumbing contractor. This included Riverbend, Copper Bluff and Sunset Bay projects. When Mr. Dante reviewed the documents with Mr. Tittle, Mr. Tittle had indicated none of them had been signed by him. The documents included all plumbing permits and contracts. Touchstone's response was Solar Tap Plumbing had been the original plumbing contractor until it went out of business. The individual who had been doing most of the work, Danny Porter, wanted to continue doing the work and Touchstone wanted to continue using him. It was Mr. Porter who had contacted Mr. Tittle, who said he had been brought in to do some of the finish work on the work in process. A document in the hearing file appeared to be a contract signed by Mr. Tittle but Mr. Tittle indicated there had never been a contract. He provided a written statement to that effect. Mr. Dante said he had requested and received complete, or portions of, all contracts from Touchstone. All addendum to the contracts were with Mike Endfield Construction. That license had expired 12/31/96 and had never been renewed. The addendum, themselves, referred to a contract dated 8/15/97, months after the license had expired. In further review of the contracts, Mr. Dante said he found the subcontractors were consistently bidding over their limits, by use of lump sum contracts. He then described how he had arrived at the total for each of the projects.

Mr. Tittle then stated he had not entered into any contracts nor had he pulled any permits on the projects in question. He had examined the contracts and the permits and said the signatures on all of them were not his.

Mr. Nix declared he had been doing business a long time and there had been no malicious or intentional deceit to circumvent contractor law. It sounded as if some real mistakes had been made and he indicated that whatever the Board decided to do was fine with him. He said the company may have been guilty of not having the controls in place which were needed in Mesquite, but corrective had since been taken. Ray Cawthorn then spoke to the specifics of each charge, detailing how each had occurred and what had been done to correct the problem. Mr. Nix added everything up to the plumbing had been technical errors. There had been no intentional circumventing of anything. They had conveniently forgotten contractor law and had used another man's contractor's license in order to keep Danny Porter in business. He was willing to accept any punishment imposed upon the company. It was then determined the building department had never determined who had signed as Mr. Tittle; Mr. Tittle was excused; and Mr. Nix said he was not, legally, smart enough to plead guilty to all of the charges, adding he was prepared to clean up the plumbing issues anyway he could. When asked if it was one of his employees who had signed as Mr. Tittle, Mr. Nix replied he had thought so for a long time but further investigation proved otherwise. All checks had been paid directly to Danny Porter. Discussion then focused on over bidding by subcontractors.

The evidentiary was closed.

Due to time constraints, the Executive Session was continued to the next meeting agenda, either in Reno or Las Vegas.

SUMMARY SUSPENSION

THE POOL CONNECTION #39023 - SUMMARY SUSPENSION

PACIFIC OCEAN POOLS INC. #42098 - SUMMARY SUSPENSION

T & M EXCAVATING #37025A - SUMMARY SUSPENSION

Mr. Knapp stated his department had received word a pool builder, The Pool Connection, had gone out of business and had left town. The license was still active, but the principal on the license, Franklin Lee McCullough, Owner, was also a principal on two other licenses, Pacific Ocean Pool Inc., and T & M Excavating.

Clark Thomas said he currently had four complaints for The Pool Connection, three were workmanship, one was money owing. All pools had been completed and were operational. Minor items existed regarding the work, rather, it was lien and money problems. The answering machine at The Pool Connection had been turned off and the office vacated. Mr. Thomas checked back and found Mr. McCullough cleaning out a back office at that location. His response was he had lost a lot of money due to an employee and had to cut his overhead. He was relocating his operations to his Rainbow office. Investigator Ramsey had checked that out and did not find anything there. Upon checking Mr. McCullough's residence, Investigator Ramsey found two individuals loading up a truck with Utah plates on it. Mr. Ramsey was informed Mr. McCullough was somewhere in West Virginia or Utah. Mr. Thomas then elaborated on the complaints with Tom Tucker, Investigator, providing additional complaint information. Mr. Knapp added, this very morning, Mr. Ramsey had received a money owing complaint regarding Pacific Ocean Pools. Upon visiting the address of record, he too had encountered two men loading up a truck with Utah plates on it but it was not registered to Mr. McCullough.

Ms. Grein added that as of 7/27/98, license #39023, had claims against the cash bond. It was being interpleaded. She had not completed the other two licenses as of yet.

PALMER & SONS INC. #34900A - HEARING

Mr. Haney told the Board he had met with both the counsel for the licensee, as well as the complainants. They had been working diligently with each other to reach a settlement. The settlement had not been reached at this time but there had been an agreement on the amount and principal, subject to the contractor's desire to verify the scope and determine if it was a real bid rather than something unrelated. The contractors had represented they would have their determination completed not later than the end of next week and they had requested the matter be continued to the September 23, 1998 hearing in Las Vegas. Mr. Haney suggested to both parties, if they were able to reach an agreement prior to that time, to document it and provide that information to Ms. Grein. Mr. Haney recommended the Board continue the matter as stated.

STOKES UNDERGROUND CONSULTING LLC #43592 - HEARING

GJ'S GENERAL CONTRACTORS #45114 - HEARING

David Spurlock, Legal Counsel, GJ's General Contractors, requested to be heard first, William Stokes, Owner, Stokes Underground Consulting acquiesced.

The contractor, Gregory Dean Jeffreys, President, was not present for the hearing which had been continued twice before. The hearing was for possible violation of NRS 624.230, engaging in business or submitting bid without a license, and NRS 624.3011 (1C1), disregard of plans, specifications, laws or regulations of the board.

Bill Stokes, Owner, Stokes Underground, and David Spurlock, Attorney, Moran and Associates, on behalf of GJ's; and Bob Macke, Compliance Supervisor, were sworn in and the stipulation was signed by Mr. Spurlock.

Mr. Spurlock stated he represented Mr. Jeffreys, GJ's General Contractors; and Cross Continent Inc., who originally hired GJ's to perform the building of Toyota West and the Sahara. Mr. Spurlock apologized for Mr. Jeffrey's non-appearance, saying Mr. Jeffrey's had planned on being present but had been called away in an emergency to Dublin, California. He said Mr. Jeffrey's was aware of the seriousness of the matter and had authorized Mr. Spurlock to speak on his behalf. After several conversations with all parties involved regarding the allegations, Mr. Spurlock said Mr. Jeffrey's was prepared to admit the charges were in fact true and to the seriousness of the allegations. Mr. Spurlock said there had been concerns Mr. Jeffrey's was an out-of-state contractor who was coming into the state of Nevada to build Toyota West, and thereafter, leave the state of Nevada, with no intent to remain permanently. Mr. Spurlock assured the Board that was not the case. He said GJ's was admitting to the charges and was prepared to take whatever sanctions the Board was willing to impose upon Mr. Jeffreys. He said Mr. Jeffreys had been anxious to explain what had occurred, not by way of excuse, but because he wanted the Board to know he wanted to clear things up in order to continue being a contractor in the state of Nevada. Mr. Spurlock said he was suggesting he and his client be allowed to meet with Ms. Grein and Mr. Knapp so that Mr. Jeffreys could explain the matter and to come up with a resolution which could be presented to the Board at its next meeting in Reno. Mr. Jeffreys could then answer any questions the Board would have and the Board could impose whatever sanctions it wanted to. More discussion followed wherein Mr. Spurlock admitted he was entering a plea of guilty.

Mr. Knapp asked Mr. Stokes if he wanted to plead guilty to any of the violations. Mr. Stokes responded he did not want to plead guilty at this time, adding he might consider the fact that by coincidental action he may have committed something wrong. He said it was not uncommon for him to provide a bid for a project and to later receive, upon completion of the job, a contract indicating exactly who he had performed the work for. The proposal in the hearing file to GJ's was the second proposal, the first one had been to the owners of Toyota West. The job had been 70% completed when the contract had been returned to him from GJ's. The agreement with GJ's was they did not have a contractor's license at that time, but Mr. Stokes would be working directly for the owner. He said he did the underground utilities, the grading, and the placement of the type 2 for the property. That was what he agreed to do; what his license scope encompassed; and what the permit he signed for covered. When asked if he had a copy of the original proposal with Toyota West, Mr. Stokes replied it was in his office. The contract in the hearing file with GJ's was dated almost 30 days after Mr. Stokes had started the job. He received it from Tony Brooks, the representative he believed to be Toyota West's in-house representative to build their property. Mr. Stokes said he signed the contract with GJ's in order to get paid. Before completion of the project, Mr. Macke had contacted Mr. Stokes and ordered him to take down his sign. The sign had his name on it and was the Clark County Health Department's permit billboard for dust control. For removing the sign, the Health Department fined Mr. Stokes $470 for complying with board directive. Mr. Stokes said he left the property and was, thereafter, not paid $42,000 at 90% completion of the project. He said he may have made a mistake in not knowing who he was dealing with but he felt he had been punished enough. More questioning resulted. It was suggested Mr. Stokes be allowed to gather documents referenced in the hearing and to postpone the hearing for one month.

Mr. Macke said he did not see the first proposal. When he became involved, he learned the building permit had been issued on 9/5/97. A letter on GJ's letterhead, dated 8/6/97, said: "Okay, Bill Stokes. The letter had been prepared approximately 3 weeks before the permit was pulled. Mr. Jeffreys had indicated throughout he had an agreement with Mr. Stokes to pull the general building permit. When asked who had signed for the building permit, Mr. Macke said it had been signed by Mr. Jeffreys, President. The application, received April 8, 1997 was signed by Greg Jeffreys and it listed Stokes Underground as the general contractor. Mr. Stokes interjected he had to write a letter to demand the building department to withdraw the building permits. More dialogue followed wherein it was learned Tony Brooks had always represented himself as the project superintendent for GJ's, and letters from GJ's and Stokes Underground regarding fees paid were read into the record.

Mr. Haney suggested continuing both hearings to a time certain and to subpoena Tony Brooks.

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 5:12 p.m.

Respectfully Submitted,
 
 
 
 

Betty Wills, Recording Secretary
 
 
 
 

APPROVED:
 
 
 
 

Margi Grein, Executive Officer
 
 
 
 

Kim Gregory, Chairman Michael Zech, Vice-Chairman