| Kenny C. Guinn
Governor MEMBERS KIM W. GREGORY
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RENO
9670 Gateway Drive, Suite 100 Reno, Nevada 89511 (702) 688-1141 Fax (702) 688-1271 Investigations (702) 688-1150 LAS VEGAS
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MINUTES OF THE MEETING
SEPTEMBER 9, 1998
The meeting of the State Contractors Board was called to order by Chairman Kim Gregory at 8:34 a.m., Wednesday, September 9, 1998, State Contractors Board, Reno, Nevada. Exhibit A is the Meeting Agenda and Exhibit B is the Sign In Log.
BOARD MEMBERS PRESENT:
Mr. Kim Gregory - Chairman
Mr. Doug Carson
Mr. Dennis Johnson
Mr. John Lindell
Mr. Dennis Nelson
Ms. Deborah Sheltra
BOARD MEMBERS ABSENT:
Mr. Michael Zech
STAFF MEMBERS PRESENT:
Ms. Margi Grein, Executive Officer
Mr. David Reese, Legal Counsel (Cooke, Roberts & Reese)
Ms. Nancy Mathias, Licensing Administrator
Mr. Bill Rizzo, Investigations Administrator
Ms. Kathy Stewart, Licensing Supervisor
Mr. Mike Maloy, Director of Investigations
Mr. Bob Kennedy, Senior Investigator
Mr. George Lyford, Investigator
Ms. Betty Wills, Recording Secretary
OTHERS PRESENT:
Denise Phipps, Court Reporter, Sierra
Nevada Reporters; Skyler Smick, Partner; North Sky Communications; George
Tsiopos, Partner, Olympus and Associates; Paul Scovil, Owner, Northstate;
Ben Cornwall, Lander County; David Itza, Lander Mechanical; Gary Stockhoff,
City of Reno; Darrell Howard, President, Complete Decon Inc.; Gary Edmunds,
Partner, Edmunds Construction; Janice Edmunds, Partner, Edmunds Construction;
Eugene Gilbert Murrietta, Owner, Eugene Gilbert Murrietta and North American
Environmental; Jay Shafer, Branch Manager, Western Traction Company; Jon
Robinson, Western Traction Company; and Ralph Capurro, Homeowner, Carson
City.
Ms. Grein stated the agenda had been
posted, in compliance with the open meeting law, on September 2, 1998,
by Jack Edstrom, 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.
there were 22 items on the amended agenda,
each of an emergency nature, as well the minutes of the NAC hearings held
in Las Vegas and Reno.
MR. JOHNSON MOVED TO HEAR THE AMENDED
AGENDA.
MR. LINDELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY ALL
PRESENT.
Mr. Gregory called for a motion to approve
the minutes of August 27, 1998.
MR. CARSON MOVED TO APPROVE THE MINUTES
OF AUGUST 27, 1998, WITH A CHANGE REFLECTING VICE-CHAIRMAN ZECH HAD ADJOURNED
THE MEETING.
MR. JOHNSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY ALL
PRESENT.
The following motion closed the meeting
to the public.
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).
APPLICATIONS
NORTH SKY COMMUNICATIONS (C40 - Community Antenna T.V. Systems) RECONSIDERATION
OF CLASS DETERMINATION, BOARD DECISION
Skyler Smick, Partner, was present to answer questions. After reviewing the material indicating the type of work North Sky Communications performed in other states, Mr. Nelson suggested the proper licensure to cover all aspects of work as described was an A12, A19, C42, C2d and e. This would insure the contractor did not violate contractor law and it would allow the company to pull building permits. There were many things Mr. Smick said the company did not plan to do at this time, adding, for the type of work the company did plan to do, he felt the C40 was more appropriate than the C2E which had previously been suggested in the August 12, 1998 meeting. However, it was pointed out to Mr. Smick, that from the electrical standpoint, the building department would not recognize the C40 as being equivalent to a master electrician's license. After much discussion, Mr. Smick was asked why he was fighting so hard not to take the C2 test. He replied he just wanted to immediately get licensed. Mr. Nelson told Mr. Smick he could not do everything his company flyer indicated. He could not acquire a license and think he could do it all. That type of thinking would lead to big trouble. Mr. Smick then said he was willing to settle for one classification and that the company would not touch anything else.
Dialogue then ensued regarding issuing an A22, designate license. Mr. Carson asked staff to develop a letter outlining what type of work North Sky Communications could perform with the limited A22 classification. Specifically: trenching, backfilling, boring, conduit installation and cable pulling (underground and aerial) in the utility company right-of-ways only. No other work was authorized with this license. Mr. Smick agreed to the restrictions.
OLYMPUS AND ASSOCIATES (A22 - Lead Abatement) NEW APPLICATION, BOARD DECISION
(C4 - Painting & Decorating) NEW APPLICATION
George Tsiopos, Partner, was present and notified the lead abatement could be performed under the C4 license. Mr. Tsiopos said the company wanted to make sure they where within the law, as they were creating another company, a sister company, to take care of this particular division in their projects. It would be lead abatement in conjunction with the painting. Mr. Tsiopos was informed that based upon the financial data, both licenses would be issued for $200,000. Thereafter, the one time raise in limit was explained to him.
The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. # 1-3, 6-9, 17, 21-22, 24, 26-29, 31-33, 42, 45-46, 52, 54-60, 62, 65, 70, 71-72, 76, 77-79, 84, 86-93, 95, and 98. Amended agenda: Nos. 5, 8--10, 14-15, and 17.
MR. JOHNSON MOVED TO REOPEN THE MEETING TO THE PUBLIC.
THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
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.
Mr. Maloy said Mr. Cornwall had asked if Lander Mechanical could act as a general contractor and sub out the additional work. Mr. Cornwall added he believed the primary scope of work was the electrical and HVAC which was the most affected areas of the county's maintenance. But he thought the remainder of the work was incidental or supplemental to the overall scope of services and, for which, Lander Mechanical was not licensed to perform. Much discussion followed, but in the end, Mr. Cornwall was advised any work had to be incidental or supplemental to the specific theme of the work. When Mr. Itza asked if, as a holder of this type of maintenance contract, he could sub out every category he was not licensed for, the answer was only if it was incidental or supplemental to the work he was specifically licensed for. The whole contract could not be incidental. It was suggested to Mr. Cornwall he get specific contracts with specific specialty trades.
2) CITY OF LAS VEGAS Robert Gordon Plaza Roof Replacement License Classification (Continued from 8/27/98) - No one had been present at the last meeting in Las Vegas wherein the Board had requested more information. That information had since been provided. Again, no one was present from the City of Las Vegas. Upon review, it was pointed out a C15 license holder could do the work and sub the mechanical to a C21 license holder or a C21 could bid the job and sub the roofing to a C15. Under no circumstances could a roofer do the HVAC work. The prime contractors who could bid the project were C15, B, B2, or C21 license holders.
3) CITY OF RENO, Redevelopment Agency - Abatement of Damaged Lead Containing Paint, Mapes Hotel, Reno - Gary Stockhoff, City of Reno, and Darrell Howard, President, Complete Decon Inc., were present for the decision. Mr. Maloy stated he had originally received a request for a license classification from A & B Asbestos, who had asked if their A23 or their pending C4 license would allow them to do lead abatement. At that time, he had no indication the job was a public works job. His response had been an A22 was required to do lead abatement. Subsequently, he learned the job was a public works job and he was setting aside his opinion. The minutes from 1995 were then presented to the Board.
The contractor, Robert Allen Snow, Owner, was not present for the hearing. His application for renewal had been previously denied and the hearing had been continued once before upon request of Mr. Snow's attorney. Kathy Stewart was sworn in. She explained the license was currently in a temporary active status because Mr. Snow had made a timely application for renewal, although it had later been denied.
The continued notice of hearing had been mailed on August 10, 1998 and received on August 11, 1998. The hearing was for possible violation of NRS 624.3013 (2), (3), failure to keep records or maintain bond; misrepresentation; failure to establish financial responsibility or comply with the law or regulation of the board. The hearing notice was entered into the record as EXHIBIT 1. It was noted that an unidentified woman had phoned the office this morning to advise Mr. Snow was out of town for a family emergency. She asked that the matter be continued although no formal request for continuance had been received.
Judith Fermoile, Nevada State Board of Architecture, was attending the Board meeting as an observer, therefore, a motion was made, seconded, and carried to close the meeting to the public pursuant to NRS 241.030 to discuss financial and other data, which is confidential under NRS 624.110 (2).
A financial discussion ensued. Thereafter, a motion was made, seconded, and carried to reopen the meeting to the public.
MR. NELSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
MR. CARSON MOVED TO SUMMARILY SUSPEND LICENSE #25491 FOR LACK OF FINANCIAL RESPONSIBILITY AND FAILURE TO APPEAR.
MS. SHELTRA SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY ALL
PRESENT.
Gary Edmunds, Partner, and Janice Edmunds, Partner, were present. The hearing was for possible violation of NRS 624.263; failure to establish financial responsibility. The hearing notice was entered into the record as EXHIBIT 1. Gary Edmunds and Janice Edmunds were both sworn in and the stipulation was signed.
The Edmunds were told they had the right to close the hearing to discuss financial matters but they did not elect to do so. Nonetheless, Ms. Fermoile exited the meeting to allow discussion of financial matters. Ms. Stewart said the charge of financial responsibility was evidenced by the personal financial statements of Gary and Denise Edmunds, and Janice and Fred Edmunds, the partners on the application. Both statements were dated October 31, 1997. The applicants had been directed to provide current financial statements prior to the hearing but none had been provided. When the application had been denied on May 28, 1998, a second application for a C3, carpentry license had been approved with a monetary limit of $100,000 with a $15,000 bond. That license had been issued on June 12, 1998.
Mr. Gregory pointed out a B2 license required a certain level of financial wherewithal to operate. The financial statement in the application did not support a limit of $250,000. Ms. Edmunds explained why no financial statement had been provided. She said any profits from the new business was going back into the company. It was her error a financial statement had not been provided. Mr. Edmunds explained why they were pursuing the B2 license.
MR. NELSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY ALL
PRESENT.
EXECUTIVE SESSION
EXECUTIVE OFFICER'S STATUS REPORT
Ms. Grein updated the Board regarding the performance review and follow-up by the Legislative Counsel Bureau. The legislative auditors were scheduled to begin their evaluation in approximately two weeks, and would be visiting the Las Vegas and Reno offices to review files in both the licensing and investigations divisions. She stated that she was currently addressing various issues, and that progress was being made, although not as expeditiously as she had originally thought possible. The board was notified the financial audit was on hold for roughly one month until new personnel was on board. Ms. Grein, herself, was preparing the budget for the next biennium as well as the employee handbook, which was almost complete. In discussing the budget, Ms. Grein was asked if a fee increase was warranted. If so, it should be prepared for the next legislative session.
REVISED POLICIES & PROCEDURES
Ms. Grein informed the Board Investigative procedures had been partially implemented and the hiring procedures fully implemented. Additionally, the recommendation for processing licenses and applications had been partially implemented. Lastly, Ms. Grein requested a response from legal counsel concerning the Administrative Procedures Act (NAC 624), notices of hearing, decision letters, stipulations, and Rules of Practice as they pertained to the State Contractors' Board.
In order to return to the scheduled agenda, the Executive Session was continued until later in the day.
HEARING
EUGENE GILBERT MURRIETTA #15242 - HEARING
Amended: NORTH AMERICAN ENVIRONMENTAL #33100 - HEARING
Eugene Gilbert Murrietta, Owner; Jay Shafer, Branch Manager, Western Traction Company; Jon Robinson, Western Traction Company; and Bob Kennedy, Senior Investigator, were sworn in.
The hearing was for possible violation of NRS 624.3012 (2), failure to pay for material or services; NRS 624.3013 (3), failure to establish financial responsibility or comply with law or regulations of board. The hearing notice was entered into the record as EXHIBIT 1.
When asked to sign the stipulation, Mr. Murrietta stated he had, that morning, provided Western Traction Company with a check for the full balance owed. The funds had not cleared yet but Western Traction had been paid. Mr. Shafer confirmed Mr. Murrietta had provided his company with a check but he had also told them money would be in his office today to cover it. As of the time the check was provided, it would not clear the bank. Mr. Shafer said if the check cleared the bank, as far as he was concerned, the issue was resolved. It was decided to move forward with the hearing and, thereafter, Mr. Murrietta signed the stipulation.
When asked about the funds, Mr. Murrietta said a deposit had been made before lunch. In the hearing notice a financial statement had been requested, but Mr. Murrietta said he did not bring one because his accountant had not yet prepared it. The last one he had prepared was dated January, 1998. He did not bring it because he thought if he brought the check the matter would be over with. Additionally, there had not been enough lead time, from the time he received the hearing notice, for his accountant to prepare a fully audited financial statement. When asked how soon he could get the financial statement into the board, Mr. Murrietta said he would call his accountant to find out. He added his last statement was more than six months old but the Board said it would accept it.
In discussion of the settlement which had occurred at the last minute, Mr. Murrietta said he did not agree with Western Traction that he owed the amount they claimed he did.
MR. CARSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
EXECUTIVE SESSION (Continued)
RENO OFFICE RELOCATION/EXPENDITURES
Mr. Maloy provided the Board with an
update, saying the project would be completed by October 15, 1998. Move-in
date was scheduled for October 24, 1998. Expenditures were then discussed.
PUBLIC COMMENT
No one from the general public was present to speak for or against any items on the agenda, but Ralph Capurro, Homeowner, Carson City, approached the Board to ask for its assistance in bringing what he considered to be a wayward contractor before the Board. Mr. Capurro was cautioned about anything he had to say which could prejudice the issue. He was asked to file a formal complaint, which he said he had already done. He was then advised as to the process involved regarding his complaint.
Ms. Sheltra stated Mr. Capurro had called her to explain what had happened to his complaint. It had been closed after one year. It was she who then suggested he call staff regarding the difference in opinion. But Mr. Capurro thought, since he had not been given another avenue for involvement, he would bring it forward and allow the Board to decide whether to re-refer it back to staff or to set it for a hearing.
Mr. Gregory said he had no problem in having Ms. Grein review the complaint and possibly assign another investigator to see if the case could be validated and then brought before the Board, but he did not think it would be appropriate for the Board to hear the particular facts of the case before that avenue had been explored. Ms. Sheltra confirmed she, too, had expressed that same concern to Mr. Capurro. She had told him she could not hear the facts and did not hear them. Ms. Grein was directed to meet with Mr. Capurro following the Board meeting.
There being no further business to come
before the Board, the meeting was adjourned by Chairman Gregory at 1:50
p.m.
Respectfully Submitted,
Betty Wills, Recording Secretary
APPROVED:
Margi Grein, Executive Officer
Kim Gregory, Chairman