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

OCTOBER 8, 1998
 
 

The meeting of the State Contractors Board was called to order by Vice-Chairman Michael Zech at 8:38 a.m., Thursday, October 8, 1998, State Contractors Board, Las Vegas, Nevada. Exhibit A is the Meeting Agenda and Exhibit B is the Sign In Log.

BOARD MEMBERS PRESENT:

Mr. Michael Zech - Vice Chairman
Mr. Doug Carson
Mr. Dennis Johnson
Mr. John Lindell
Mr. Dennis Nelson
Ms. Deborah Sheltra

BOARD MEMBERS ABSENT:

Mr. Kim Gregory

STAFF MEMBERS PRESENT:

Ms. Margi Grein, Executive Officer
Mr. Robert Griffy, Legal Counsel (Haney, Woloson & Mullins)
Ms. Nancy Mathias, Licensing Administrator
Mr. Bill Rizzo, Investigations Administrator
Ms. Pat Potter, Licensing Supervisor
Mr. Tom Knapp, Director of Investigations
Mr. Bob Macke, Compliance Supervisor
Mr. Rick Berttuzzi, Investigator
Mr. Linc Dante, Investigator
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:
 

Cari Inkenbrandt, Court Reporter, CSR Associates of Nevada; Joseph R. Deblanco, Owner, Joseph R Deblanco; Joseph Maviglia and wife Jane, Owner, J & S Water Conditioning; Brett Torino, Chief Executive Officer, Torino Construction Corp.; Shlomo Israel, President, Altered Shapes Designs Inc.; Bruce Esquinaldo, President, Challenger Pools; Mark Edwards, Qualified Employee (QE), Challenger Pools; R. Douglas Kurdziel, Legal Counsel for Challenger Pools; Keith Gregory, Attorney, Environmental Landscape Designs Inc.; Kelly Musler, Owner, Patch Co.; David Stevens, Owner, Santa Fe Ironworks; Frank E. Stafford, Las Vegas Housing Authority; Charles Koski, Owner, Chucks Roofing; Eugene Murrieta, Owner, Eugene Gilbert Murrieta and North America Environmental; Luis Manuel Gandulla, Owner, Las Vegas Synthetic Stucco; Linda Helda Blair, Complainant; Jim Skinner, CEDCO Inc.; Frank McCullough, Owner, The Pool Connection and Secretary, T & M Excavating; Complainants: John and Sharon Bogden, Karen Tesar, Virginia Hughes, Howard Basch, Charlotte Young, Antonio Semedo, Ron & Carol Eby, Dan Penescu, Charles Williams, Merland and Delores Grimm, Michael Hughes and Ms. Pierce, Kubota & Associates; Sharon Maddox, Complainant; Chris McCullough, Attorney for Landis Development LLC; Matt Whitaker, President; Whitaker Enterprises Inc.; and Viki Vaughn, Complainant.

Ms. Grein stated the agenda had been posted, in compliance with the open meeting law, on October 2, 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.

Mr. Zech called for a motion to approve the minutes of September 23, 1998.

Mr. Lindell pointed out there was an error in the motion on page 13. He said he had made the motion, Mr. Nelson had seconded it.
MR. LINDELL MOVED TO APPROVE THE MINUTES OF SEPTEMBER 23, 1998 REFLECTING THE CORRECTION AS STATED.

MR. NELSON SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.
 

It was learned there were 23 items on the amended agenda, each of an emergency nature.
MR. NELSON 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. CARSON 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

JOSEPH R DEBLANCO (A - General Engineering) NEW APPLICATION, BOARD DECISION

Joseph R. Deblanco, Owner, was present. When asked if he knew about 2 items on his credit report, Mr. Deblanco said no, agreeing it warranted research.
MR. NELSON MOVED TO ISSUE A LICENSE WITH A LIMIT OF $250,000 AND TO REQUIRE A $25,000 BOND.
 

MR. JOHNSON SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY BY ALL PRESENT.

Board members agreed they would consider lowering the bond if the two items mentioned on the credit report were cleared up.

J & S WATER CONDITIONING (C30 - Tiling) NEW APPLICATION, BOARD DECISION

Joseph Maviglia, Owner, and wife Jane were present. Mr. Maviglia was informed the application was incomplete as he had not answered all of the questions. Mr. Maviglia said he had answered all of the questions on his original application for a license. The Board then learned Mr. Maviglia had been licensed in Nevada in 1981. That license had since lapsed because the business had experienced financial difficulties forcing Mr. Maviglia out of business. However, Mr. Maviglia was under the impression the board still had his original application on file and would issue a new one to him based on that application. It was on that basis he had determined he did not need to provide the information staff had requested. He was then informed, due to the statute of limitation, the records were no longer available. Additionally, he would have to test, provide the information which was now required by law, and wait the length of time needed to process the application. Mr. Maviglia viewed this as an affront intended to delay the issuance of a license.

Mr. Maviglia admitted he was currently performing plumbing repairs, stating he had the ability to perform maintenance work without a license. Mr. Maviglia was advised this was not the case. he needed a license to perform this type of work.

Mr. Zech apprised Mr. Maviglia he was being held to the same standard as everyone else. He was required to fill out the application completely or the license could not be issued.

NSCB, SIU Investigator, Rick Berttuzzi, reported to the Board information uncovered in his preliminary background investigation of Mr. Maviglia. In the Justice Court system in Las Vegas, NV, he had found 3 criminal cases on record. Starting in December of 1986, he had found a case with an assault charge wherein Mr. Maviglia attempted to strike an individual with a hammer. Mr. Maviglia had been found guilty and had paid a fine of $50. A second charge for contracting without a license had occurred in 1992. Mr. Maviglia was found guilty, fined $1,000, and ordered to serve 200 hours of community service. After the community service had been completed, the fine had been waived. A third case in June, 1996 concerned count 1: a felony burglary; and count 2: felony grand larceny. It had been alleged Mr. Maviglia stole four water softeners, valued at over $250 apiece. The charges were consolidated to a single count of misdemeanor, trespassing, with an order to stay away from the victim. Mr. Maviglia had been fined $500, paid on 1/30/97. Mr. Berttuzzi reported that in District Court, Las Vegas, NV, he had identified three cases on record. A case in January, 1994 involved three charges. Count 1 was for falsification of voter registration affidavit, a gross misdemeanor; count 2, filing a false document, a felony; and count 3, perjury for failing to disclose a prior felony conviction in the state of California, a felony charge. In the disposition, counts 2 and 3 had been dismissed. Count 1 had been amended to disorderly conduct with 50 hours of community service. In April, 1994, the case had been further amended to a misdemeanor, disorderly conduct, with credit for time served. Thereafter, the 50 hour community service had been waived. Mr. Berttuzzi said his initial investigation had been conducted, locally, in the state of Nevada. However, Mr. Berttuzzi made a request of the Board to ask Mr. Maviglia to provide a release and waiver so he could check the criminal repositories in California and Michigan, in order to allow him to follow-up to see if any criminal history existed in those two states. Mr. Maviglia gave his permission, verbally, but agreed to provide the release in writing.

Mr. Maviglia stated he was a temperamental Italian. When pushed, he pushed back. He then explained the reasons behind each of the cases he had been found guilty of. He said it was his desire to be a good person and to run a legitimate business which had prompted him to ask to have his license reissued.

Mr. Maviglia was told if he provided the necessary information, his application could once again be scheduled for review in two weeks. He was also asked to provide a copy of his previous license.

TORINO CONSTRUCTION CORP. #26378 (B2 - Residential & Small Commercial) APPLICATION FOR RENEWAL/LICENSE EXPIRED

Brett Torino, Chief Executive Officer, made an appearance and explained what had occurred regarding the Apex Framing judgment. In brief, the 1992 judgment had been against his father's company, Torino Construction. Jon Peterlee, the attorney handling the case, had advised his father not to pay the judgment because he intended to appeal it. While his father was alive, Mr. Torino had started his own company, but since he had not been able to use the Torino name, he became licensed under the name of Sedona. Two things then transpired, the appeal on the judgment fell through the cracks and was forgotten and Mr. Torino's father died. Since Mr. Torino wanted to use the name Torino, personnel was instructed to change the name on his license but, in error, took his father's license and surrendered Sedona. In assuming the license, Mr. Torino also assumed all liability on it. The Apex judgment then surfaced and his payroll account seized for $50,000 as partial satisfaction of the judgment. There was yet another $30,000 outstanding, along with the fees owed to the Contractors' Board. Mr. Torino said he had spoken to Mr. Haney's office indicating he did not want to do anything that would put him at odds with the board. He relayed this message to his lawyer as well. It was his desire to negotiate a resolution to the Apex matter utilizing his $30,000 bond, to settle the issues with the Contractors' Board, and to get the matter behind him. He then stated his bond had been interpleaded. Mr. Griffy substantiated Mr. Torino's comments, explaining how close to resolve the item was.

When asked why he was before the Board today, Mr. Torino explained the license had expired by four or five days when it had been brought to his attention. When he had attempted to get the license renewed, he found out someone had filed a complaint against him for a roof leak. That complaint had since been taken care of. Ms. Mathias confirmed there had been a roof leak and it had been resolved, and that there were pending issues on the bond.

ALTERED SHAPES DESIGNS INC. (B2 - Residential & Small Commercial) - NEW APPLICATION, BOARD DECISION

Shlomo Israel, President, was present for the application review. Discussion focused on credit card debts and a tax lien on a house which had been deeded to his wife at the time of their divorce. The debts had not been paid by his former wife.

Bruce Esquinaldo, President; Mark Edwards, Qualified Employee (QE); and R. Douglas Kurdziel, Legal Counsel for Challenger Pools, were present. Ms. Mathias explained George Lyford, Investigator, had been looking into the citation which had been issued in the state of Florida against Challenger Pools and Mr. Esquinaldo.

Mr. Lyford said he had contacted the office of the Attorney General (AG) in the state of Florida. They had a series of 21 complaints filed against Challenger Pools, which, according to their records, were still open. The AG's office had submitted a settlement agreement to various attorneys but had yet not received anything back, therefore, the case was considered open and pending. Mr. Lyford said there appeared to be no Florida connection between Esquire Pools, Lisa Marie Noll, or Challenger Pools.

Mr. Edwards explained Jimid Inc. had been his parents corporation. When he had been hired as the QE for Esquire pools in July of 1996, Mr. Edwards ceded Jimid to Esquire Pools. Mr. Edwards later resigned from Esquire Pools in October of the same year. At the time of his resignation, there had been no negative problems against the company. He left for personal reasons, providing the board with a copy of his letter of resignation as he wanted to ensure his record was clear.

Mr. Esquinaldo stated Challenger Pools had a franchise in Orlando. It was operated by Challenger Pools Incorporated. He said his company was Challenger Pools of Tampa, Incorporated. The Orlando Challenger Pools office had closed. However, every pool had been completed, every complaint addressed, and the warranties honored through the warranty by Challenger Pools Incorporated, who had hired a service company in Orlando to take care of those items. Mr. Esquinaldo said he had the settlement papers from the AG and the only issue the AG had with Challenger Pools of Tampa was regarding an ad that had appeared advertising a free spa. The word 'free' was larger than the rest of the headline. Under Forida's advertising rules, if the word free was used, it could not be larger than any other word in the headline. The settlement was asking for $5,000. Mr. Esquinaldo said he owned Challenger Pools of Tampa and Gary Westin owned Challenger Pools of Orlando and was the sole owner of Challenger Pools Incorporated in Orlando. Additionally, Mr. Esquinaldo said there were stores in Texas: Dallas and Houston; and offices in West Palm Beach and Fort Lauderdale, Florida. Mr. Esquinaldo owned the store in Houston, Mr. Westin owned Dallas, West Palm Beach, Fort Lauderdale and Fort Myers. When asked if Mr. Westin had walked away from the Orlando area, Mr. Esquinaldo said Mr. Westin had finished the pools, closed the office, and left.

Keith Gregory, Attorney, was present to represent Maxine D. Wise, President, who was not present. Discussion occurred regarding charge offs, bankruptcies, and the financial statement. When asked if he had any idea of what jobs Ms. Wise had in the works, Mr. Gregory said one of the developers wanted his client to landscape 31 homes. When asked if Ms. Wise would indemnify the license, Mr. Gregory replied yes, if subject to review at the next renewal process. The license was then approved for renewal, with a financial review upon renewal. .

PATCH CO. #40771 (C-3J-Drywall) ONE TIME RAISE IN LIMIT

Kelly Musler, Owner, was present. He informed the Board he had been invited by Beazer to bid the project. He had been working for them for quite a while. He said there where two hundred homes that would be built in phases and it would take two to three years to complete.

Mr. Zech abstained. David Stevens, Owner, was present for the Board action. He was informed the one time raise in limit had been approved for $230,000, payment and performance bonds, if required.

The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. # 3, 5-6, 13-14, 24, 28, 38, 41, 47, 54, 58, 60-61, 63-69, 75, 80, 83, 85, 88-89, 91, 94-97, and 99-102. Amended agenda: Nos. 3, 6-7, 9-10, 20, and 21.

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

ADVISORY OPINION

LAS VEGAS HOUSING AUTHORITY, Sherman Gardens & Villa Capri Apartment Complex

Frank E. Stafford, was present for the Board's opinion which was an AB, A, B, B2, were appropriate licenses.

EXECUTIVE SESSION

REPORT BY EXECUTIVE OFFICER

REVIEW OF POLICIES AND PROCEDURES

Ms. Grein provided the Board with policies and procedures manuals for Licensing, Investigations, and a revised employee handbook. She informed the Board of recent training sessions attended by staff. Discussion then turned to ICBO training for the investigators.

Ms. Grein reported on the number of new complaints and the status of pending complaints for the last quarter. She stated she developing procedures to streamline the methodology to speed up the process. The status and procedure of the advisory enforcement committees was also addressed.

PROGRESS REPORT

Ms. Grein informed the Board the RFP for legal and professional services had been released; the vacant staff positions had now been filled, bringing the board up to full staff; the Reno office relocation was commencing the week of October 19, 1998 and was expected to be complete by October 26, 1998. In discussion of the 1999 Legislative Session, Ms. Grein was asked to prepare an RFP for selection of a legislative advocate for the board. The representative would be selected from the top 5 candidates. Board strategy and bill draft requests were also discussed. Additional discussion focused on the notice of hearings and its preparation for board hearings, as well as the preparation of findings of fact, conclusions of law.

Due to time constraints the discussion regarding procedures for advisory opinions and budget requests was delayed until the next meeting on October 20, 1998

APPLICATION HEARINGS

ADVANCE STONE, INC. - APPLICATION HEARING

Bahman Kaveh, President, was not present for the hearing. The notice of hearing had been sent certified mail on September 8, 1998, received September 10, 1998. The hearing was for possible violation of NRS 624.265, good character of applicant and associates; and NRS 624.3013 (2), failure to keep records or maintain bond, misrepresentation; failure to establish financial responsibility or comply with the law or regulation of board. The hearing notice was entered into the record as EXHIBIT 1.

Tim Seth Shank, President, did not appear for the hearing. The notice of hearing had been sent certified mail on September 8, 1998, received September 9, 1998. The hearing was for possible violation of NRS 624.263, financial responsibility of applicant or licensee. The hearing notice was entered into the record as EXHIBIT 1.

CHUCKS ROOFING #20567 - DISCIPLINARY HEARING

Charles Koski, Owner, and Bob Macke, Compliance Supervisor, were sworn in and the charges were read. The hearing was for possible violation of NRS 624.3017 (1), workmanship which is not commensurate with the standards of industry; NRS 624.301 (4), willful failure or refusal without legal excuse on the part of a licensee to comply with the terms of a construction contract or written warranty; NRS 624.3013 (5), failure in any material respect to comply with the provisions of this chapter or the regulations of the board. The hearing notice was entered into the record as EXHIBIT 1 and the stipulation was signed.

Mr. Knapp asked Mr. Koski if he wished to plead guilty to the charges stated in the hearing notice. Mr. Koski said when he water tested the outside wall, he had received a letter from the Contractors' Board saying he was not responsible for walls. He had put in a new section of the roof and he had painted the ceiling. He spent approximately $800 to fix the problem. When it was explained to Mr. Koski what it meant to plead guilty to any of the charges, Ms. Koski said he could plead guilty to the fact he had not been able to stop the leak that was coming through the wall.

Mr. Macke said the complaint had been opened in September, 1997 and had been validated by a previous investigator. Chucks roofing had gone to the site and made repairs. It was believed, at the time, the problem had been solved, therefore the complaint had been closed. Following the next rain in February, 1998, the complaint had been reopened. An administrative meeting had been held on July 1, 1998 with Chucks Roofing in attendance. An agreement had been reached for both parties to meet on-site with Mr. Macke on July 6, 1998 to review the areas of complaint. On July 3, 1998, Mr. Koski had called to say he was unable to attend the on-site meeting which Mr. Macke had conducted and in which Mr. Macke had validated the roof leak. On July 24, 1998, Mr. Macke contacted the homeowner and learned Mr. Koski had not contacted her. So, in August, the complaint had been submitted for a board hearing. After the recent rains in September, Ms. Eure, the complainant, had contacted Mr. Macke to inform him there was still a leak. Mr. Macke added there was extensive interior damage. In the master bedroom there was a hole in the ceiling, around the parapet, approximately eight to ten inches in diameter, and there was also some damage to the ceiling in the guest bedroom. Mr. Macke then explained how he had validated the complaint.

More questioning followed wherein it was established there was a two year warranty on the repairs which had been made, and that there had been no further contact with Mr. Koski since the phone call on July 3, 1998. Mr. Koski then explained what work he had specifically performed, detailing the results of the water test which indicated to him the leak was coming from the wall, not the roof. Mr. Koski offered to go back, take the tile and metal off to see if that was where the water was coming in.

NORTH AMERICAN ENVIRONMENTAL #33100 - DISCIPLINARY HEARING (Continued from 9/9/98)

Mr. Maloy reported the complainant, Western Traction, had been paid in full by a cashier's check the day after the last hearing and was satisfied. Mr. Murrieta had been requested to provide two financial statements, one from January, 1998, and a current one. The current financial statement had just been received and was distributed to the Board for review.

To refresh the Board's memory, Eugene Murrieta, Owner, explained the circumstances which had lead to the complaint. Mr. Lindell said the charges regarding the money owing had been dropped. The contractor was present for a financial review.

Thereafter, a motion was made, seconded, and carried to leave the licenses at the current limits, with the bonding to remain the same, and FS upon renewal. This motion was later rescinded because of a discussion which arose when Mr. Nelson stated he believed the parties should have been able to work out a settlement without involving the Contractors' Board. He suggested the board be reimbursed for the cost of the investigation. Dialogue followed wherein several motions were offered. They were either rescinded, died for lack of seconds, or did not pass. Ultimately, the following motions were acted upon.

ESQUIRE POOLS, INC. #43356 - FORMAL FINDINGS OF FACT

LISA MARIE NOLL #43931 - FORMAL FINDINGS OF FACT

Ms. Grein stated there was one change to the findings. She explained that in February of this year, there had been a summary suspension of the two licenses. Thereafter, a hearing to show cause for the summary suspensions had been held on the 13th of May and the licenses had been revoked at that time. The contractor had not been present at the hearing and was not present this day. Today's hearing was merely a formality to accept the findings rather than to take action on the licenses.

LAS VEGAS SYNTHETIC STUCCO #42719 - DISCIPLINARY HEARING

The licensee, Luis Manuel Gandulla, Owner, was not present when the hearing began but he arrived shortly thereafter and was sworn in. He did not sign the stipulation. The following witnesses had been sworn in prior to his arrival: Linda Helda Blair, Complainant, Jim Skinner, CEDCO Inc, and Linc Dante, Investigator.

The hearing was for possible violation of NRS 624.301 (1), abandonment without legal excuse; NRS 624.301 (3), willful failure to prosecute a construction project; NRS 624.3015 (2), bidding in excess of the limit; NAC 624.640 (5), failure to provide license number on the bid submitted; and NRS 624.3013 (5), failure to comply with the provisions of the board as evidenced by the four charges stated.

Under questioning by Mr. Knapp, Ms. Blair stated she had entered into an agreement with Las Vegas Synthetic Stucco on April 22, 1997. The contract price had been for $35,625 and Las Vegas Synthetic Stucco was to furnish materials and labor for a full stucco system at the Blair residence. The proposal did not contain the contractor's license number or the bid limit. The payment schedule as stated in the contract had not been adhered to by either party. Ms. Blair said she had paid the contractor upon demand even though the contract stated requests would be submitted on Friday, to be paid the following Friday. When questioned about it, the contractor had told her he took one third for materials, one third rough, and one third completion. He billed on Friday and the amount was to be paid the following Friday. This did not prove out because Ms. Blair said the contractor would bring her his bill and demand payment that day, which made it difficult for her because the money had to come out of a construction account, and had to be preceded by a preprinted labor release. Mr. Gandulla had been paid a total of $29,153.94. The work had been started at the end of June, 1997. The completion date was to be four to six weeks later. The last time the contractor had been on the job was on September 14, 1997. Ms. Blair said on the day Mr. Gandulla pulled his crew off the job, a color coat was being applied. She said they hadn't finished putting the foam or the grey coat on. When she looked at the color coat she realized it had been put on everything. It was her understanding the popouts and the eaves were supposed to be white. When she mentioned It to the contractor, he became agitated and pulled out of the job. Ms. Blair then detailed her efforts to get Mr. Gandulla to return and complete the job, but to no avail. He never responded. Thereafter, Ms. Blair made several attempts to contract with other contractors to finish the job but no one wanted to finish it due to the status the job had been left in. She finally located an independent who finished the job, time and materials. The job was ultimately completed in November, 1997 for an additional $14,216.67, bringing the total contract price to $43,370.61. Ms. Blair had filed a claim against Mr. Gandulla's bond and had received a payment of approximately $3,100.

Mr. Gandulla admitted he did not have his license number on his proposals because he was not aware it needed to be there. But he did have it on his business cards and he had given one to Ms. Blair. He said there had been no completion date discussed, it was not on the contract. Regarding his billing, he always billed on Friday, paid the following Friday. He did not bill in thirds. The first payment of approximately $12,000 had been for materials. The color coat problem had arisen because he understood only the eaves were to be trimmed in white. The rest of the paint had been premixed. He said the real reason he left the job was because Ms. Blair had told him she was not going to pay him anymore money until the job was done. He then discussed electrical galvanized fasteners with Mr. Skinner, who had a different opinion as to how to fasten foam. He said the warranty was valid regardless of what Ms. Blair may have been told. Under questioning by Mr. Knapp, Mr. Gandulla admitted to bidding over his limit; a one time raise in limit had not been requested for the project; and his license limit and license number were not on the proposal. He said 75% of the project had been completed when he ceased working on it.

Mr. Dante told the board the complaint had been originally opened as a workmanship complaint. He had been to the property on December 22, 1997 and found that the work had been completed by other individuals. The workmanship complaint had been closed the following day but, based on the information he had, he opened the complaint as an industrial regulation. A letter had been received from Las Vegas Synthetic Stucco indicating Mr. Gandulla had terminated his proposal of work at the Blair residence because he had difficulty in getting along with the Blairs and because of the color coat. Mr. Gandulla pointed out his letter stated the main reason for his leaving the job was not the color coat, but rather a breach of his proposal and Mr. Blair, who was a policeman, had threatened to throw he and his crew into jail if they didn't do a good job.

Mr. Skinner said he had looked at the home and decided the job was too far along for a company to get real involved in it. He then described what he had found. He concurred about 70 % or 75% of the house had been completed. He explained it was common for a contractor not to finish all the steps at one time. He said the workmanship on the project was fine and the color coat was really nice.

After more dialogue, Mr. Gandulla signed the stipulation and the evidentiary was closed.

PACIFIC OCEAN POOLS INC #42098 - SHOW CAUSE FOR SUMMARY SUSPENSION

T & M EXCAVATING #37025A - SHOW CAUSE FOR SUMMARY SUSPENSION

Ms. Grein explained in the August 27, 1998 hearing, there had been summary suspensions of all licenses charged. In its previous meeting in Las Vegas, held on September 23, 1998, there had been inconsistencies and legal issues within the notice of hearing so the item had been postponed. Mr. McCullough had signed a stipulation to waive the 30 day notice requirement and an amended notice of hearing had been mailed October 1, 1998.

The hearing was for possible violation of NRS 624.301 (1), abandonment without legal excuse; NRS 624:301 (4), willful failure or refusal without legal excuse to comply with the terms of a construction contract or written warranty; NRS 624.3017 (1), workmanship which is not commensurate with standards of trade in general; NRS 624.3011 (1)(C)(1), willful or deliberate disregard and violation of the building laws of the state; NRS 624.3012 (2), willful or deliberate failure to pay moneys when due; NRS 624.3013 (3); failure to establish financial responsibility; NRS 624.3013 (5), failure to comply with the provisions of this chapter, and NRS 624.3016 (5), failure to comply with NRS 597.713, 597.716 or 597.719, concerning pool contractors. The hearing notice was entered into the record as EXHIBIT 1.

The following witnesses were sworn: Frank McCullough, Owner, The Pool Connection and Secretary, T & M Excavating; Complainants: John and Sharon Bogden, Karen Tesar, Virginia Hughes, Howard Basch, Charlotte Young, Antonio Semedo, Ron & Carol Eby, Dan Penescu, Charles Williams, Merland and Delores Grimm, Michael Hughes and Ms. Pierce, Kubota & Associates; and investigators: Clark Thomas, Ron Ramsey, Tom Tucker, Greg Mincheff, and Linc Dante.

Mr. McCullough signed the stipulation.

JOHN AND SHARON BOGDEN - The Bogdens had signed a contract with the Pool Connection to build a pool on their property for $29,000, all of which had been paid excepting $2,220. The pool was to be completed 35 days after the excavation date which should have been May 26, 1998. It had been partially completed by July 3. The last work performed on the pool had been done during the third week of July. No one ever showed up again. Ms. Bogden next detailed her efforts to contact the contractor. Then at an administrative meeting with the Contractors' Board the Pool Connection had agreed to fix the validated items identified by Investigator Thomas. The work should have been accomplished by July 31, 1998 but wasn't. Ms. Bogden said she had received unconditional lien releases from D B R Enterprises and the rebar company. She had received a conditional lien from Murphy Electric, D B R, and E & E Concrete and preliminary lien notices from D B R, E & E Concrete, and Whitaker Enterprises. Murphy Electric had been the only one to perfect a lien on her property. More questioning followed and later, Mr. Thomas verified each of the alleged complaints.

Mr. McCullough asked if anyone was aware of what had happened to his company. He said one of his managers, Mike Regan had robbed the company, taking all the money and the employees. He said he had been doing his best to get everything corrected as best as he could but he had run out of money. He now had no money to do anything. He said he had been in touch with Linc Dante from the day he had fired one, Mike Regan. He was in court over this and had filed fraud charges against him. Mr. McCullough said Mike Regan was currently in Phoenix, Arizona, selling new pools for Shasta Industries.

Ms. Grein asked if an agreement between Mike Regan and Frank McCullough concerning the business could be entered into the record. Mr. McCullough asked that the police report also be entered into the record. Mr. Knapp explained the agreement was for Mr. McCullough to sell his company and his license to Mr. Regan. There was to be a fee of $500 for each pool. The agreement gave Mr. Regan total control of the company for which Mr. McCullough was the licensee.

CHARLES WILLIAMS - Mr. Williams stated he had entered into a contract on March 10, 1998 with the Pool Connection for $19,500 to build a pool deck and spa on his property. All but $250 had been paid. He had paid by check. Completion date was supposed to be 35 days after excavation had been performed. Mr. Williams had indicated in his complaint that a frog chlorine system was missing, and the reservoir and remote control for the spa light had not been provided per the contract. To date, he had not received them. Only three unconditional lien releases had been given to him. Murphy Electric had filed a lien on his property for $1,149.25. Mr. Williams said Michael Regan had portrayed himself as the owner of the Pool Connection and had introduced Mr. McCullough as the excavating contractor. At this time Mr. McCullough said he had stepped into all of the contracts after they were done. Mr. Tucker verified the Williams complaint and Mr. Williams offered more information regarding liens.

Charlotte Young - Mrs. Young stated she had entered into a contract with the Pool Connection on May 27, 1998 to build a pool deck and a retaining wall on her property. The total sum had been for $24,980. The Pool Connection had been paid $23,232. The last payment had been made in July for approximately $6,.000. Work on the last phase of pool had not yet been paid for. No approximate date of completion had been provided. The items remaining to be completed were the plastering, the deck, the patio, the retaining wall, the block wall, the security gate which had not been provided or installed, plumbing, electric, and debris not removed. Mrs. Young then detailed her and her husband's efforts to get the pool completed. She said all of her contact's had been with Mr. Regan, she had never seen Mr. McCullough. There was one unconditional release from Rebar and one lien had been filed for non payment of plumbing services in the amount of $1,267.85. Further questioning occurred and Mr. Tucker validated all items.

HOWARD BASCH - The contract Mr. Basch entered into with the Pool Connection amounted to $23,615. The total amount paid on the contract amounted to approximately $22,000. He had paid the contractor in stages from the money he had received from First Financial, the company financing the pool. No completion date had been put into the contract, he had only been told the pool would be completed within five to six weeks. When he had contacted the Pool Connection regarding warranty items needing correction, they had responded it was no problem and somebody would be out to fix the problem. The original people who had performed the work were not the ones who responded, it was someone else. The following items had been validated by Investigator Clark Thomas as needing correction: Equipment pad too small for equipment, anti-siphon valve not secured to the wall, plaster contained quarter inch holes by the drain near the beach front entry, autofill cover didn't fit; and breakers had not been installed per contract. All items remained to be corrected, excepting the breakers which Mr. Basch had fixed himself. Mr. Basch had not gotten any unconditional lien releases. Murphy Electric had placed a lien on his property for $1,129.75 and he anticipated receiving future lien notices. Mr. Basch closed with a personal statement.

RON AND CAROL EBY - The Ebys had entered into a contract with the Pool Connection to build a pool and spa for $16,700. The full contract amount had been paid out on the last day the pool had been plastered. Unconditional lien releases had not been provided. A prelien had been filed by B & D Plastering for $1,164. Mr. Eby had contacted the Pool Connection many times and had been told the lien had been paid. It was Mike Regan, who had represented himself as owner, that told Mr. Eby the lien had been paid. Mr. Thomas verified the complaints.

MERLAND AND DELORES GRIMM - The Grimms contract was dated March 23, 1998. The contract amount was for $21,066. The contract did not have a completion date. The Pool Connection had been paid the entire amount of the contract price. The final payment had been paid immediately after the tile had been put on the pool. It was learned First Financial had financed the pool. Two unconditional lien releases had been provided. There were three intents to lien, Whitaker, DBR, and E & E Concrete. The Pool Connection had failed to provide a permanent valve to replace the temporary valve and it had not yet been taken care of. A stopper had been installed. Efforts to contact the Pool Connection were then outlined. Mr. Thomas had verified the charges.

DAN PENESCU - Mr. Penescu's contract had been for $17,000. The entire amount of the contract had been paid to the Pool Connection. The last check had been paid at the end of July. It too had been financed by First Financial. The pool had been completed on August 2, 1998. Mr. Penescu had not been provided the sweeping vacuum, the pool cover, or the autofill device. the autofill device had been defective and Mr. Penescu had to purchase another one. The pool had passed inspection. Mr. Penescu told the Board what his efforts were to contact the Pool Connection. He had not been provided unconditional lien releases. There were two liens on his property, one from Performance Pool Plumbing for $1,575.25 and Murphy Electric for $706. The liens had not been satisfied. Investigator Mincheff verified the violations. By 6/6/98, Mr. Penescu had learned the McCulloughs were involved in the pool.

ANTONIO SEMEDO - The Semedos contract had been entered into on February 24, 1998 for $30,000. The Pool Connection was to build a pool, spa, and patio cover. The entire contract amount had been paid. The full amount had been paid before construction started. Mr. Semedo had paid for the pool with checks provided by the finance company, First Financial. No information had been provided per statute nor had Mr. Semedo received any unconditional lien releases. When the pool had been completed, the only problem Mr. Semedo had was with the temporary valve but that had since been corrected. Mr. Semedo said he just received two prelien letters, one from Murphy Electric and one from DBR. To his knowledge no liens had been filed against his property. Mr. Tucker had verified the allegations in the Semedo complaint. It was learned Mr. Semedo had used First Financial because the Pool Connection had recommended it.

KAREN TESAR - The Tesar contract had been for $17,000. The full amount of the contract had been paid by check in the middle of may. The pool had not been financed. Two unconditional lien releases had been supplied: T & M and DBR. One lien had been filed by Murphy Electric for $1,134. Two prelien notifications had recently been received. Three weeks earlier, Ms. Tesar had noticed the chipping and delamination of the decking of the pool. She detailed the steps she took to reach the Pool Connection. Mr. Ramsey verified and validated the chipping and delamination problem.

MICHAEL HUGHES - Mr. Hughes confirmed he had contracted with the Pool Connection for $28,350 to construct a pool with waterfall and replacement of existing deck. He had received some documentation pertaining to the statute by Mr. Regan but he was not told what it was nor was he advised he could require a pay and performance bond. Mr Hughes had paid $26,600 by personal check. The checks had been made out to the Pool Connection and were handed to Mr. Regan, himself, or to his employees. Mr. Hughes had receipts for three of the payments. Several phone calls and visits to the Pool Connection office had been made in an effort to reach someone. The status of the pool today was Mr. Hughes had a shell, bond beam, and a waterfall. There was no concrete around the pool area, it was all dirt. To his knowledge there were no liens against his property. More questioning and explanation followed. Investigator Mincheff verified and validated the Pool Connection had not completed the electrical work and decking per contract.

KUBOTA & ASSOCIATES - Ms. Pierce said the Pool Connection had hired Kubota & Associates for engineering services from September 12, 1997 through October 30, 1997. Ms. Pierce said pool companies bought standards for engineering services at the beginning of the year for a lump sum and then there was a resite or a reuse fee per job. Cite plans were reviewed and stamped and the pool company was informed which pages of the standard were applicable for that particular cite. Ms. Pierce then explained what process and documents were generated when the Pool Connection contracted for their services. For the year, the Pool Connection had paid for $2,450 for standards. The outstanding amount currently owed by the Pool Connection was $390. Ms. Pierce then described her efforts to collect the money owed. Since June there had been no contact with the Pool Connection. Mr. Ramsey verified and confirmed the information presented.

Mr. McCullough said he did the best he could to help people get their pools completed. Some of the subs were willing to wait and let Mr. McCullough pay them a little at a time. Questioning ensued and documents were entered into the record. The agreement between Mike Regan and Mr. McCullough for the sale of the Pool Connection was entered as EXHIBIT 2, a promissory note between Mr. Regan and Mr. Hughes was entered as EXHIBIT 3, and a police report which was filed against Mr. Regan was entered as EXHIBIT 4. Mr. Zech asked staff to pursue the fraud issue with the District Attorney's office and the Attorney General's office.

The evidentiary was closed.

EXECUTIVE SESSION (Continued)

INVESTIGATIVE PROCEDURES

Ms. Grein asked that records of pool contractors be checked for compliance with Nevada Laws and rules and regulations of the State Contractors' Board.

LANDIS DEVELOPMENT LLC

Gary Day, Manager, was unable to be present due to a family emergency. However, Chris McCullough, counsel for Landis Development was present.

Mr. Tucker said the complaint had been opened on January 6, 1998. On January 19th, Mr. Tucker had observed extensive cracking on all four sides of the house. Landis Development had been directed to repair the cracks and to paint if required. Prior repairs had given the houses a spider web effect. Mr. Tucker had sent Landis Development a letter informing them that the repairs were not acceptable and needed to be corrected. At an administrative hearing the contractor had been advised to submit, in writing to Ms. Maddox, the material they intended to use. The contractor had complied but Ms. Maddox did not find the material acceptable.

Mr. Lindell stated that the particular procedure the contractor used left spider line cracks and there was no way to cover them up. Corrective action required the contractor to remove the caulking, route the cracks out, use a proper mortar mixture to fill the cracks in, and then use a color coat to match the existing coat. Discussion then focused on what material was best to use.

Sharon Maddox stated her opinion regarding the material and said she was being sued for not allowing the contractor to come back and put on the same material. She was informed Mr. Tucker would oversee that the work was done correctly but she could not dictate to the contractor what material he could use or how the work was to be performed. But if she would not allow the contractor onto the property, the board could not help her.

Mr. McCullough said he was actually suing Bobbie Maddox, the owner, to allow the contractor to do the work. And the contractor would continue to make repairs until the house was fixed. That was the warranty, which Ms Maddox was breaching. Mr. Nelson pointed out Ms. Maddox was now on record saying the contractor would be allowed to make the corrections and the attorney was on record indicating that the contractor would find another solution if the repairs did not work.

The Board decided to send another investigator with Tom Tucker to review the work. All were asked to coordinate the appointment with Mr. Tucker.

WHITAKER ENTERPRISES INC. #31695A - DISCIPLINARY HEARING (Continued from 9/23/98)

Matt Whitaker, President; Viki Vaughn, Complainant; and Linc Dante, Investigator, were present. Ms. Vaughn said she had not yet seen the pool but had been informed the pool was finished.

Mr. Dante said he had gone out the day before, the tile had been installed but not the grout. The tile looked great. The job was to be completed by 3:00 p.m. this day. Ms. Vaughn added Mr. Whitaker had run out of grout yesterday and was to finish this a.m.

Mr. Whitaker explained that last week when the job had been scheduled, the pump had stopped in the middle of the night. Thereafter, the job had to be rescheduled. That's why he got so close to the deadline.

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 6:10 p.m.

Respectfully Submitted,
 
 
 
 

Betty Wills, Recording Secretary
 
 

APPROVED:
 
 
 
 

Margi Grein, Executive Officer
 
 
 
 

Mike Zech, Vice-Chairman