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 20, 1998
 
 

The meeting of the State Contractors Board was called to order by Vice-Chairman Michael Zech at 8:36 a.m., Tuesday, October 20, 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

BOARD MEMBERS ABSENT:

Mr. Kim Gregory
Mr. Dennis Nelson
Ms. Deborah Sheltra

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. Rick Berttuzzi, SIU Investigator
Mr. Linc Dante, Investigator
Mr. George Lyford, SIU Director
Mr. Greg Mincheff, Investigator
Mr. Clark Thomas, Investigator
Mr. Tom Tucker, Investigator
Ms. Betty Wills, Recording Secretary

OTHERS PRESENT:

Cari Inkenbrandt, Court Reporter, CSR Associates of Nevada; Nicholas Sankovich, Member; Outdoor Concepts Ltd.; Michael Sankovich, Member, Outdoor Concepts Ltd.; James Didier, Member, Southern Nevada Pool Service LLC; Dudley Smith, President, Dasco Inc.; Kathy Collins, President, Collins Power Services Inc.; Tom Collins, Vice President, Collins Power Services Inc.; Matthew William Waite, Owner, M D Landscaping; Harold Richey, Owner, Richey's Construction; Homer L. Gordy, Partner, H L Electric; Dave Aegerter, President, J. A. Vay & Sons; Gail Maxwell, Nevada Office of Labor Commissioner; Gregg Anderson and wife Joyce Taylor Anderson, Homeowners; Randy Costner, Rhodes Homes; Steve Caputo, Rhodes Homes; Paul Sanucci, Rhodes Homes; Sherwood Gordon, Rhodes Homes; Rob Johnson, Legal Counsel for Rhodes Homes; Curtis W. Meyer, President, U.S. Home Corp; Geary Bruce Hix, Bruce's Backhoe; and Estell Schultz, Complainant.
Ms. Grein stated the agenda had been posted, in compliance with the open meeting law, on October 14, 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 October 8, 1998.

APPLICATIONS

WESTERN SLOPE UTILITIES INC. (A15 - Sewers, Drains & Pipes) NEW APPLICATION, BOARD DECISION

Harry Baum, President, was not present. The Board was apprised the application had been tabled for further investigation of a conviction of John Sprauer, Qualified Employee.

Mr. Lyford reported the initial application had indicated Mr. Sprauer had been convicted of mail fraud. Mr. Sprauer had been the Director of Public Works in Frisco City, Colorado. During his tenure there, Mr. Sprauer had entered into an agreement with individuals from M & L Supply where they were supplying barrels of water to the city and billing them for a chemical. Mr. Sprauer had been provided a one third kick-back on the chemicals which had been supposedly delivered to the city. This had occurred over a period of years. Mr. Sprauer had indicated to Mr. Lyford he had received approximately $65,000 during that time. The local police had submitted the case to the FBI. Mr. Sprauer, along with the other individuals, was investigated and eventually pled guilty to one count of mail fraud. He received five years in jail, suspended four months actually in jail, the rest on probation, and was ordered to pay restitution. Mr. Lyford said he had spoken with the police chief who had initiated the investigation. The chief had advised Mr. Lyford that Mr. Sprauer, at that point in time, had a cocaine problem which had caused his need for money. Since that event, Mr. Sprauer had cleaned up his act. The chief confirmed Mr. Sprauer had straightened up. He had learned from his mistakes and problems. This had been a one time incident which had gone on for a couple of years but the issues had since been resolved. Discussion ensued wherein it was decided to approve a license with a $1.5 million limit and a $30,000 bond.

OUTDOOR CONCEPTS LTD. (C10 - Landscape Contracting) NEW APPLICATION, BOARD DECISION

Nicholas and Michael Sankovich, Members, were both present. When asked what was the largest job they intended to perform, the answer was $10,000 to $15,000 maximum. A bankruptcy was discussed as it caused concern. Nick Sankovich explained it was their intention to start small, grow slowly, establish themselves, and eventually hire employees. In the early stages, Mike Sankovich would get the business started and eventually Nick Sankovich would phase himself in. He told the Board he currently worked in auto sales at Friendly Ford. Prior to that he had spent 21 years in the gaming industry. After some dialogue and amendments to a motion, the following motion was acted upon.

James Didier, Member, was present. He was asked what he intended to do, repair or construction? He replied construction. He added he had a repair and service business for four years and had been in the construction trade since 1992. He said he had lived in Las Vegas his entire life. He said he had asked for a $100,000 limit, which was preferable, but he would accept a smaller limit to start. He intended to start with residential pools. Thereafter, Mr. Didier was approved for a license with a $100,000 limit and a $20,000 bond, FS upon renewal. The Board agreed the name on the license did not have to be changed.

BEAUVAIS CARPETS (C16 - Finishing Floors) - NEW APPLICATION, BOARD DECISION

John Beauvais, President, was not present. Mr. Berttuzzi informed the board he had found a case in justice court dated June, 1985. It was for possession of a controlled substance. It had originally been filed as a felony charge but Mr. Berttuzzi had only basic, cursory information on the case because cases prior to 1988 had not been kept and the details had been purged. However, on July 2, 1985, Mr. Beauvais had pled guilty to a misdemeanor possession of a controlled substance. A battery case, dated November, 1986, had been uncovered indicating Mr. Beauvais had been involved in a fist fight. That case had been dismissed in January, 1987. In district court, there had been a case filed against Mr. Beauvais in February, 1986 for five counts of sales of a controlled substance, mainly cocaine. From a period of May, 1985 to June, 1985, Mr. Beauvais had made five sales to one individual. Mr. Beauvais had been arrested on those charges and, via a plea agreement in March, 1986, Mr. Beauvais had agreed to plead guilty to one count of felony sales of cocaine and, in return, the other charges, counts 2 through 5, had been dismissed. Mr. Beauvais had been sentenced to ten years in a Nevada State prison but the sentence had been suspended and Mr. Beauvais had been given five years of formal probation and ordered to pay restitution of $460 to Metro and $500 for services rendered by the public defenders office. Mr. Beauvais had successfully completed his five year probation term which had ended in July 9, 1990. No other cases could be found after that date. A license was then approved with a $10,000 limit and a $2,000 bond.

The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. # 1-6, 9, 12, 14, 16-17, 20-22, 25, 27, 37-39, 41, 46, 51, 54, 58, 60-63, 66, 69, 73-74, 77-78, 90, 93, 97-100, 102, 104, and 109. Amended agenda: Nos. 1, 3, 6, 8-9, 11-12, 16, and 21-23.

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

Dudley Smith, President, was present for the interview. The Board was informed the license had been suspended for a period of six months on April 22, 1998, and a provision had been made to allow Mr. Smith's current employer to indemnify and back the completion of 17 homes Mr. Smith intended to build. If the provision was met, the Board would consider lifting the suspension. The indemnification information had been received from the company, as well as the necessary financial information indicating there was enough financial backing to complete the 17 homes.

Kathy Collins, President, and Tom Collins, Vice President, were present for the discussion which focused on the DCA-QUIC Program for Nevada Power Company. Mr. Collins explained they had a C2F and an A17 license. On March 12, 1997, the Board had said Collins Power Services Inc. was qualified to do the work. Mrs. Collins was currently involved in the process of bidding to continue to do the DCA-QUIC program work where developers hired their company to do Nevada Power work. The Collins were asking the Board for an updated letter supporting that decision for the new proposal which indicated a full C2 was needed. Discussion then focused on the Board's decision, at that time, to grandfather in the underground provision allowing the holder of both a C2F and an A17 license to perform that type of work. Mr. Collins then stated he did have an application in to get a full C2.

CASH DISBURSEMENT AND TRANSFER APPROVAL FOR 4/1/98 THROUGH 6/30/98

Due to a case which was pending, Mr. Reese had advised the Board to consider discussing how the advisory opinions were handled. After some dialogue, Mr. Haney suggested he would look at a formal opinion and prepare a disclaimer which could be prepared in the formal letter sent to the requestor of an advisory opinion.

Executive Officer's Progress Report

Ms. Grein indicated she had submitted the budget request for FY 99-01. A possible fee increase was recommended. Ms. Grein then spoke to the newspaper article the Sun had published. She informed the Board she had asked the Sun to pick up a copy of the minutes pertaining to Mr. Maviglia and to prepare a rebuttal. The conversation then focused on the mechanism to limit legal fees paid out on a license bond.

FINDINGS OF FACT, CONCLUSIONS OF LAW AND DECISIONS

DIAMOND ROOFING #38722 - FINDINGS OF FACT, CONCLUSIONS OF LAW, AND DECISION

Francis Theodore Fishcher, President, was not present for the decision.

Carl Allen Hammer, Owner, was not present for the decision.

M D LANDSCAPING - APPLICATION HEARING

The hearing was for possible violation of NRS 624.263, financial responsibility. The hearing notice was entered into the record as EXHIBIT 1. Matthew William Waite, Owner, was sworn in and the stipulation was signed.

Ms. Potter said the application for a C10 landscape contractor had been presented to the Board on August 27, 1998 and was an intent to deny for financial responsibility based on the financial statement dated June 30, 1998. The applicant had been directed to provide a new financial statement and bank confirmation. To date, no financial statement or bank confirmation had been received.

Mr. Waite said he had a bank confirmation with him but did not realize he needed a new financial statement as well. When asked if his financial position had changed since June 30, 1998, Mr. Waite said it had increased. The Board then reviewed the bank confirmation. Mr. Lindell asked Mr. Waite if he had steady customers he was maintaining yards for. Mr. Waite said he had 45 maintenance accounts but these customers wanted other work done. That was the purpose for his request for a license, to perform landscaping work in their yards. He said he did mostly residential but he did have three commercial accounts. He said he had just recently started his lawn business in September of 1997. He didn't have much money when the first financial had been prepared but it had increased now. He lived in Overton and performed all of his work in Overton and Logandale. When asked what size of jobs he intended to perform, Mr. Waite said he only intended to do sprinkler systems, decorative rock, new lawns, and plant shrubs and trees for the residential homeowner. He had only asked for a $5,000 limit.

RICHEY'S CONSTRUCTION - APPLICATION HEARING

The hearing was for possible violation of NRS 624.263, financial responsibility. The hearing notice was entered into the record as EXHIBIT 1. Harold Richey, Owner, was sworn in and the stipulation was signed.

The application for a C5, Concrete license had been presented to the Board on August 12, 1998 and was made an intent to deny for financial responsibility. In addition, Mr. Richey had filed Chapter 7 bankruptcy in California. The applicant had responded "no" to question number 6 on the application regarding the adjudication of a bankruptcy. The applicant had been directed to provide a complete copy of his bankruptcy. To date, none had been received. The credit report was presented to the Board for review. Additionally, Mr. Richey had brought a copy of the bankruptcy with him.

Mr. Richey said he had filed a personal bankruptcy in California. His house had gone into foreclosure and his lawyer had advised him to file bankruptcy in order to prolong the foreclosure proceedings and allow Mr. Richey time to find the funds to save the house. That became too expensive, so his lawyer then suggested Mr. Richey file bankruptcy to all his creditors. All of his creditors had been personal, not business related. He had been with the same people for over 25 years and had always paid his accounts cash on delivery or by cash when he purchased material. He had never had a problem with any of his creditors. His license in California was free of any blemish. He then detailed what had caused him to default, basically the California recession. When asked if he could get his California bonding company to support the fact that he had paid his premiums and that there were no claims against his bond, Mr. Richey said he did not see any reason why he couldn't. He said his projects would range between $5,000 and $10,000. He owned all of his equipment free and clear. Mr. Richey said he had asked California to supply his license history but California had a voice conversant system by which information could be obtained to see if there had been any complaints filed against his license. He had never performed any projects larger than $25,000.

A motion was offered, and upon discussion, amended to the following:

H L ELECTRIC #37658 - DISCIPLINARY HEARING

The hearing was for possible violation of NRS 624.3014 (2a), aiding or abetting an unlicensed person to evade the provisions of this chapter; NRS 624.3014 (2b), combining or conspiring with an unlicensed person to perform an unauthorized act; NRS 624.3014 (2c), allowing a license to be used by an unlicensed person; NRS 624.3014 (2d), acting as agent, partner or associate of an unlicensed person; NRS 624.3014 (3), any attempt by a licensee to assign, transfer or otherwise dispose of a license or permit the unauthorized use thereof; NRS 624.305 (1), no license may be used for any purpose by any person other than the person to whom such license is issued, and no license may be assigned, transferred or otherwise disposed of to permit the unauthorized use thereof; NRS 624.305 (2), the license of any person who violates any provision of this section shall be automatically canceled and revoked as evidenced by the above violations; NAC 624.650 (1), a licensee shall not permit his contracting business to be operated by an unlicensed or unqualified person, under the power of attorney or otherwise; and NRS 624.3015 (5), failure in any material respect to comply with the provisions of this chapter or the regulations of the board as evidenced by the above violations. The hearing notice was entered into the record as EXHIBIT 1. Homer L. Gordy, Partner, Bob Macke, Investigator, and Clark Thomas, Investigator, were sworn in and Mr. Gordy signed the stipulation.

Mr. Knapp asked Mr. Gordy if he wished to plead guilty to any or all of the charges alleged in the complaint. Mr. Gordy said, by law, he was probably guilty but at the time he did not think he was doing anything wrong. He said all he could do was tell the Board his side of the story and they would have to decide if he was guilty.

Mr. Macke explained how he had received the complaint. It was in review of a criminal complaint that he had received from the owner of El Rodeo that he noticed H L Electric had pulled a building permit for electrical work they had not performed. Next, an invoice had been produced from the TAG group to H L Electric for the work performed on the El Rodeo. In interviewing Mr. Gordy, Mr. Gordy had admitted he, personally, had not done any of the work. Ed Scott had performed the work and was currently in the northeast part of the United States. Mr. Macke had received a phone call from Mr. Scott in mid-November of 1997. Mr. Scott had related he had performed the work and that he was not an employee of Mr. Gordy. Nothing further had been heard from Mr. Scott. Mr. Macke said there were no records to reflect Mr. Scott was licensed in Nevada. The signature on the permit appeared to be that of H. L. Gordy. Mr. Gordy had admitted to signing the permit. Mr. Macke stated all information he had obtained in his interview with Mr. Gordy on October 3, 1997 concerning the El Rodeo project had been given to him freely and voluntarily by Mr. Gordy.

During this investigation, Mr. Macke stated he had discussed the Cashman Middle School case assigned to Investigator Thomas because Mr. Thomas had overheard Mr. Macke mention H. L. Electric. Thereafter, Mr. Thomas had approached Mr. Macke because he was having a problem with Larry Webster and Skidmore Contracting. He had asked Mr. Macke in his interview with Mr. Gordy to question him regarding his interaction with Mr. Webster, the school and Skidmore. Mr. Gordy, subsequently, had provided Mr. Macke with a second notarized statement concerning his involvement with Mack Electric, an unlicensed entity, and Larry Eugene Webster, who was listed as the Qualified Employee (QE) on a pending license application for Mack Electric.

Mr. Thomas reported he had been working on a contracting without a license case when Mr. Macke had provided him with the notorized statement of Mr. Gordy. He then described the information he had developed in his investigation and how it tied into the activities of H L Electric. He said after he had received Mr. Gordy's statement, he had gone to the job site and had confirmed with the workers that they worked for Mack Electric and had never heard of H L Electric. At that time Mack Electric was not a licensed contractor in the state of Nevada nor was Larry Eugene Webster. It was Larry Eugene Webster who had been cited as an unlicensed contractor and he had subsequently pled guilty to that misdemeanor. Thereafter, Mr. Webster withdrew as the QE on the pending license application of Mack Electric. Mr. Thomas said he later learned Mr. Webster had been indicted and found guilty for falsifying payrolls in Arizona. Mack Electric currently held an active C2 license in Nevada. Homer L. Gordy had replaced Mr. Webster as the QE on the pending license application and was the current QE on Mack Electric's license. Mack Electric had actually performed the work on Cashman Middle School, however, all paper work from the General Contractor showed H L Electric. Questioning next centered on the arrangement between Skidmore Contracting and H L Electric for funds payment and transfer to Mack Electric. Mr. Thomas had never been able to establish that H L Electric had a legitimate contractual relationship with Skidmore Contracting Corporation or any type of formalized contract with Mack Electric. Further information detailing how the payment arrangements were transacted was presented.

Mr. Gordy said he had never received a fee for allowing his license and company name to be used. He said he intended to be the QE for Mack Electric and thought everything was above board. Mr. Gordy said Mr. Webster was currently in Las Vegas working on a job on Cheyenne and Lamb. He admitted to being the current QE for Mack Electric and said Larry Webster was the President. Mr. Knapp stated the president on the license was listed as Cydnie Chilleen. Mr. Gordy said he did not know that to be true or not. He did not know the person nor did he know of any relationship between Sydney Chilene and Mr. Webster. For the record, Mr. Knapp said it was his understanding Cydnie Chilleen was the girlfriend of Larry Eugene Webster. Mr. Gordy then explained his side of the activity. He owed Mr. Scott money. So when Mr. Scott approached him on the El Rodeo job he worked up a set of prints and told him this would be fair and equitable for the amount he owed him. When approached by Mr. Webster to QE his company, out of respect for him, Mr. Gordy agreed. Mr. Gordy was led to believe Mr. Webster was working for Skidmore and that Skidmore was paying his employees on certified payroll. Mr. Webster had told him he had some jobs involving Skidmore and since Mr. Gordy was going to QE for his company, would Mr. Gordy use his license. Mr. Gordy said he did not know at the time he was doing anything wrong. He had made no personal, financial gain off of the venture. He did not sell his license or put it up for rent. More questioning followed wherein Mr. Gordy recanted his statement, saying he had been out to the job site a couple of times but not regularly.

The evidentiary was closed.

C N R ELECTRIC #41987 - DISCIPLINARY HEARING

Mr. Knapp informed the Board, he had received a letter from the licensee, Clifford Louis Myles, President, indicating he was out of town and would not be present for the hearing. The notice of hearing had been sent certified mail on September 18, 1998 and the return receipt had been dated September 19, 1998. The hearing was for possible violation of NRS 624.301 (4), willful failure or refusal without legal excuse on the part of a licensee to comply with the terms of the construction contract or warranty; NRS 624. 3012 (2), willful or deliberate failure by any licensee or agent or officer thereof to pay any moneys when due for any materials or services rendered in connection with his operations as a contractor, when he has the capacity to pay or when he has received sufficient funds therefor as payment for the particular construction work; NRS 624.326 (1), each contractor shall disburse money paid to him pursuant to NRS 624.325; NRS 624.3013 (5), failure to comply with the provisions of this chapter or the regulations of the board as evidenced by the above three violations. The hearing notice was entered into the record as EXHIBIT 1

Dave Aegerter, President, J. A. Vay & Sons; Gail Maxwell, Nevada Office of Labor Commissioner; and Linc Dante, Investigator, were sworn in and the licensee's statement was entered into the record as EXHIBIT 2. Mr. Knapp pointed out a financial statement had been requested in the notice of hearing but not been received.

Mr. Aegerter stated J. A. Vay & Sons had entered into a contract with C N R Electric on January 14, 1997 for work to be performed on the Lewis E. Rowe Elementary School. The total corrected contract amount had been for $406,912. J. A. Vay & Sons had been paid in full minus 5% retention by the Clark County School District. The total amount paid C N R on their contract had been $386,543.31. An additional sum for $38,494.45 in payroll expenses had also been paid for C N R Electric to enable them to complete the project. C N R Electric had not abided by the terms and conditions of the agreement. There was a letter in the hearing notice from attorneys for GE Supply revealing C N R Electric owed GE Supply $25,944.80 in conjunction with the school project. Mr. Aegerter said the money was still owed to GE Supply. A claim had been made against Mr. Aegerter's bond for non-payment as a result of C N R's default. That claim had not been paid either and Mr. Aegerter said he had not paid for any claims made by suppliers for money owed on the project. Mr. Aegerter then detailed his attempts to have C N R pay the suppliers. On every occasion Mr. Myles had said he could not do that and had told Mr. Aegerter he was not capable of managing a company.

Ms. Maxwell said Mr. Myles had sent her the information reflected on pages 37-39 of the hearing notice. Herein, he admitted he owed money to the State Labor Commission for payroll. The Labor Commission had requested the funds from C N R Electric but as they were unable to pay the Labor Commission pursued collection through the prime contractor, J. A. Vay. Ms. Maxwell confirmed Mr. Aegerter's testimony. She said C N R Electric had not attempted to arrange a payment schedule with her to satisfy the debt. The money had been obtained from the owner of the project against J. A. Vay. All claims and labor costs incurred had been paid off. She said there had been an additional 25 claims filed along with the individuals listed on page 40 of the hearing notice.

Mr. Dante said he had reviewed all of the documents and had found them to be accurate. He pointed out C N R Electric and Mr. Myles had been totally uncooperative from day one. They did not show up at the administrative meeting and they did not respond to anything during the investigation. More questioning ensued regarding monies owed and further contact with Mr Myles.

The evidentiary was closed.

Mr. Zech declared a conflict and the homeowners were asked if they had any objection to him chairing the hearing. No objection was raised. The hearing was for possible violation of NRS 624.301 (4), willful failure to comply with terms of contract or written warranty; and NRS 624.3017 (1), workmanship which is not commensurate with standards in the building or construction codes adopted by the city or county in which the work is performed. The hearing notice was entered into the record as EXHIBIT 1.

Gregg Anderson and wife Joyce Taylor Anderson, Homeowners; Randy Costner, Rhodes Homes; Steve Caputo, Rhodes Homes, Paul Sanucci, Rhodes Homes; Sherwood Gordon, Rhodes Homes, and Greg Mincheff, Investigator, were sworn in. Rob Johnson, Legal Counsel for Rhodes Homes was identified and the stipulation signed.

Under questioning by Mr. Knapp it was learned the Andersons had entered into a contract on January 7, 1997 to purchase a home from Rhodes Homes for $149,000. A punch list had been prepared in a walk through on January 9, 1997 and submitted for correction. To date, six items still remained to be repaired. Mr. Anderson then detailed his many attempts to have the corrections made, citing the many times he or his wife had taken off work in order to be home for appointments arranged with the contractor. Often times the appointments had been missed as the contractor had failed to show up as scheduled. The Andersons calculated they had taken off work a minimum of 30 days to await repairs that never took place.

After the complaint had been filed with the State Contractors' Board, an administrative meeting had been held on June 10, 1998, whereby Mr. Costner of Rhodes Homes agreed to address all of the validated items of the complaint and to correct them by Monday, June 29, 1998. The items had never been corrected or repaired in accordance with the agreed upon schedule developed in that meeting. The Andersons were to be at their residence from 8:00 a.m. to 5:00 p.m. on both Monday and Friday until 5 full days had been provided to the contractor to accomplish the repairs. During that 2 1/2 week period there had been no correspondence from the contractor nor did anyone stop at the house or attempt to perform any of the corrections. On the fifth day, a new customer service person stopped by and asked the Andersons to show him what the problems were. The six items remaining to be corrected were: repair of drywall elevation over fireplace in living room; front door stoop has (1) inch difference in width at one end; remove paint from wood base of handrail in living room; stub wall in kitchen nook has bow in top; second level hand rail needs finish reapplied to repaired areas, and check for proper air flow to master bath register. Mr. Johnson then questioned Mr. Anderson regarding Rhodes Homes computer generated requests for service. He established the customer service requests had been signed off by Mrs. Anderson for various repairs. The Board asked that the signed customer service requests be copied. The hearing was recessed to make copies.

When the hearing reconvened Mr. Haney clarified there were only six items remaining which were at issue. After another short recess, Mr. Johnson stated regarding the open six items, Rhodes Homes was prepared to task those items and to get them completed to the satisfaction of the Board Investigator so as to satisfy Mr. Anderson's complaints in total, adding Rhodes Homes had recently repainted the entire downstairs of the Anderson Home. Mr. Anderson aired his frustration regarding the time and effort it had taken to have 15 validated items repaired from the time of purchase.

Mr. Lindell clarified to Mr. Anderson that "to the satisfaction of the Board Investigator" meant the repairs would have to be made to the standards of the industry. He then asked what type of time frame Rhodes Homes needed to repair the six items. Mr. Costner said with the exception of the last item he could repair everything in two days. He needed two consecutive days during the week, 8 o'clock to 5 o'clock, adding he wouldn't mind giving himself a third day for a little room. He was unable to do the work as laid out in the administrative hearing, Mondays and Fridays. He had tried and failed. He said he believed he had performed a CFM test but was willing to do it again and he would present the results to the investigator.

Mr. Anderson said he believed he or his wife could comply if it was by Board request but he and his wife had already lost 30 days of work, once again stating his frustration. Mr. Lindell confirmed that in order for the work to be done correctly, it would require three days. Three consecutive days. Mr. Johnson suggested the investigator set up a time suitable to the homeowners for resolve within the next 30 days.

Mr. Rob Johnson said if the commitment was for Rhodes to complete the six items by a date certain, those items would be accomplished. But if there were other issues the Board wanted to hear, there was further evidentiary matters that Rhodes Homes wanted to present. Mr. Haney then summarized what had been presented. Mr. Anderson stated he wanted to have the defects repaired but he also wanted a penalty imposed upon the contractor.

After a short recess, Mr. Knapp informed the Board, the Andersons were willing to accept the offer made by Rhodes Homes to repair the remaining six items and to develop a definitive three day schedule with the investigator to have the work accomplished. Ms. Anderson asked that when the workmen arrived they be informed of whatever work they were to accomplish beforehand and to not ask her for direction. The investigator was to coordinate all activity.

The service requests were then entered into the record as EXHIBIT 2 and dialogue followed regarding whether to proceed with the hearing. Mr. Lindell stated he did not believe the charge of willful failure to complete the items was a just charge. The licensee had made attempts to correct the problem but had not completed them in a satisfactory manner. The second violation, substandard workmanship, was a viable charge and Mr. Lindell believed that if the evidentiary was closed, the Board was in a position to make a motion on that charge.

Utilizing the service requests, Mr. Rob Johnson questioned the Andersons regarding the items which they had accepted and signed off on. Mrs. Anderson stated she did not read them, she only signed them. Mr. Anderson maintained the customer service representative had stuck them in front of his wife's face and told her to sign them. Further questions and answers following along the same vein ensued. Thereafter, Mr. Mincheff stated he had validated the six items under discussion.

Mr. Lindell stated he accepted that Rhodes Homes had made a good faith effort to correct everything on all of the lists, but there was still workmanship standards that needed to be met on the remaining six items. Mr. Carson said he was not sure if an adequate effort was made. Mr. Costner said he had 800 homes under warranty and he had never been in front of the Board before. He was prepared to repair the six items. He offered to write the Andersons a check if they wanted to accomplish the work themselves. He only wanted closure to the matter.

The evidentiary was closed. Mr. Lindell asked Mr. Costner if three weeks was enough time to perform the corrections. He said yes as long as he had three full days. The Andersons also agreed.

Jeanine Rich and Charles Rich, Partners, were not present for the hearing. The notice of hearing had been mailed to the address of record on September 19, 1998 and the return receipt received October 3, 1998. The hearing was for possible violation of NRS 624.3012 (2), willful or deliberate failure by a licensee or any agent or officer thereof to pay any moneys when due for any materials or services rendered; NRS 624.3013 (3), failure to establish financial responsibility pursuant to NRS 624.220, 624.260 and 624.265; and 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.

Curtis W. Meyer, President, U.S. Home Corp; Geary Bruce Hix, Bruce's Backhoe; and Tom Tucker, Investigator, were sworn in. Mr. Johnson pointed out the license had become inactive on 4/1/98. It had not been renewed. The hearing was for money owed. Mr. Johnson asked if there had been any claims made on the $10,000 bond. Mr. Hix said he had made a claim on it and had been advised the bonding company did not have any problems with his claim. There had been no other claim other than his. It was then determined there were two bonds, a ten and a five.

Mr. Knapp stated a financial statement had been requested of the licensee, but none had been provided. Mr. Hix said he had performed backhoe, trenching and hoe ram services for Big Red Construction for the period 12/31/96 to 8/29/97. The total amount of invoices came to $9,785. Mr. Hix said there was no contract, he had been hired by the hour. His method of billing was standard bill for each job. He would telephone Mr. Rich and give him the hours. When the billing fell behind, Mr. Rich had asked Mr. Hix to stay with him until he could get him caught up. Mr. Hix then detailed what steps he had taken to collect his money. The last time he had any contact with Big Red was sometime within the first part of 1998. When an administrative meeting had been held at the State Contractors' Board, Big Red did not attend.

Mr. Meyer said Big Red Construction had been under contract with U. S. Homes. There were no current contracts with Big Red Construction. U. S. Homes had paid Big Red Construction for all money owed on all past contracts. U. S. Homes was not holding any funds for Big Red Construction for any work performed.

Mr. Tucker reported he had verified the information presented by both witnesses. Thereafter, the evidentiary was closed.

Robert Phillip Chofay, President, was not present for the hearing. The notice of hearing had been mailed to the address of record on September 19, 1998. The return receipt was not received and the notice had been returned marked "attempted" on September 25, 1998. The hearing was for possible violation of NRS 624.3017 (1), workmanship which is not commensurate with the standard of the trade in general or below the standards of the industry; NRS 624.3012 (2), willful or deliberate failure by a licensee or any agent or officer thereof to pay any moneys when due; and 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.

Estelle Schulz, Complainant, and Bob Macke, Investigator, were sworn in. Mr. Knapp reported a financial statement had been requested but none had been received.

Ms. Schultz had entered into a contract on April 14, 1998 with C C & R Development to build a guest house. The total contract amount had been $108,592. The subsequent change orders had adjusted the contract total to $109,764.50. Ms. Schultz said the amount she had with the change orders was $110,853.98. Her parents, Thomas and Hazel Keyes were the owners of the property. Mr. and Mrs. Keyes had paid for all but $4,000 of the contract amount. The last payment to C C & R had been made on 10/27/97. The $4,000 was still owed on the base contract amount. When asked what was the final inspection date and okay from the city to occupy had been, Ms. Schultz said she had never received any papers but her parents had moved in December 1. Ms. Schultz had first notified C C & R of the workmanship complaints approximately two weeks later. The last time anyone from C C & R had been on the property to correct any work had been the second week of December, 1997. She then detailed her efforts to contact C C & R. Mr. Macke had reviewed the work and validated the complaint. C C & R had failed to appear at the administrative hearing held at the board office. C C & R had filed a prelien against the Keyes' property for $6,627.76. The amount was for labor and materials on the guest home. Ms. Schultz said the prelien notice was the only thing she had ever received. She had also received prelien notices from Cloud Carpets, Bonanza Materials and Stout Electric. The electric lien had been paid in the amount of $1,145. Ms. Schultz did not really know if any liens had been perfected against the property although she said her lawyer would have to do further research to determine if any liens had been filed.

Mr. Macke verified the workmanship items, detailing what the items were. He said he had contacted Bonanza Materials and Cloud Carpets and had received copies of the liens. But when he had contacted the Recorder's office a week ago to try to research it, they had indicated there were no liens filed. Both Cloud and Bonanza stated they had filed the liens. Mr. Macke then recounted his efforts to contact Mr. Chofay of C C & R which were unsuccessful. Mr. Carson pointed out there was a $10,000 bond which Ms. Schultz said she was pursuing.

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 4:12 p.m.

Respectfully Submitted,
 
 

Betty Wills, Recording Secretary
 
 
 
 

APPROVED:
 
 
 
 

Margi Grein, Executive Officer
 
 
 
 

Mike Zech, Vice-Chairman