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

NOVEMBER 5, 1998
 
 

The meeting of the State Contractors Board was called to order by Chairman Kim Gregory at 8:45 a.m., Thursday, November 5, 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. Michael Zech
Mr. Doug Carson (Exited at 2:05 p.m.)
Mr. Dennis Johnson
Mr. John Lindell
Mr. Dennis Nelson
Ms. Deborah Sheltra

BOARD MEMBERS ABSENT:

None

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. Gary Leonard, Investigator
Ms. Betty Wills, Recording Secretary

OTHERS PRESENT:

Karen Yates, Court Reporter, Sierra Nevada Reporters; Phillip Kellogg, President, Kellogg & Kimsey Inc.; Rick Elmore, Legal Counsel representing Kellogg & Kimsey Inc.; Johnny R. Ribeiro, President, Ribeiro Development Inc.; Les Love, Big Sky Locators, Inc.; Ruben Vasquez, President, LVI Environmental of Nevada, Incorporated; Ralph Chappele, Air Liquide America Corporation; Dan Hayward, Legal Counsel for Air Liquide America Corporation; Bob Lopes, Business Manager, Plumbers Union; Craig Rowley, Director of Purchasing, Las Vegas Convention & Visitors Authority; Guadalupe Alejos, Owner, L A Painting; Theodore Van Allen, Qualified Employee, L A Painting; Jeffrey Michael Rechel, Owner, Rechel & Sons Construction Company; Harold and Norma Felton, Complainants; and Shirley Brandt, Complainant; F. Randall Dee Skidmore, President, Skidmore; John W. Rodgers, Owner, Design Electric; Rodney Sumpter, Legal Counsel for Design Electric; Frank Marche, Complainant, and Kurt Pastory, Partner, K/C Enterprises.
Ms. Grein stated the agenda had been posted, in compliance with the open meeting law, on October 29, 1998, by John Sapp, 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.

It was learned there were 28 items on the amended agenda, each of an emergency nature.

APPLICATIONS

KELLOGG & KIMSEY INC. (B2 - Residential & Small Commercial) NEW APPLICATION

Phillip Kellogg, President, and Rick Elmore, Legal Counsel, were present and were asked why an unlimited license was being requested. Mr. Kellogg explained there was no particular reason as his typical job size was $3 to $5 million. He was willing to request a $5 million limit at this time.

Johnny R. Ribeiro, President, was present for the application review. Mr. Ribeiro was informed his request for an unlimited license was not warranted by the financial information he had provided. Mr. Ribeiro then indicated he intended to supply his personal financial statement and to indemnify the license.

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

R & S CONCRETE CONSTRUCTION #25491 FINDINGS OF FACT, CONCLUSIONS OF LAW AND DECISION

Robert Allen Snow, Owner, was not present but Ms. Mathias indicated a letter had just been received from Mr. Snow responding to the findings and detailing why he was not present.

In the workshop, discussion focused on the current operational costs for licensing and investigations; the implementation of new procedures; the Reno office relocation and its associated costs; and additional staff. Areas were explored to augment revenues. It was suggested a complete budget forecast be prepared immediately as well as a matrix listing ways to provide funding to meet that budget. The discussion was continued to the Las Vegas meeting pending completion of financial information.

EXECUTIVE SESSION

REVIEW AND DISCUSSION OF PROPOSED INVESTIGATIONS PROCEDURE

The allegation procedure was addressed and Ms. Grein detailed the proposed procedure to shorten the investigation process. The discussion was continued to the Las Vegas meeting.

ADVISORY OPINIONS

L A PAINTING - APPLICATION HEARING

The hearing was for possible violation of NRS 624.263, failure to meet the criteria for establishing financial responsibility; NRS 624.260, qualifier for applicant does not meet the required criteria; and NRS 624.3013 (2), misrepresentation. The hearing notice was entered into the record as EXHIBIT 1.

Guadalupe Alejos, Owner, and Theodore Van Allen, Qualified Employee, and Kathy Stewart, were sworn in and the stipulation was signed.

The allegation of failure to meet the criteria for establishing financial responsibility was evidenced by Mr. Alejos unsatisfied tax lien which had been filed in July, 1992 in the amount of $11,031.98. The allegation that the qualifier Theodore Van Allen had not met the criteria as set forth in NRS 624.263 was evidenced by his failure to provide copies of judgments filed against him. Also Mr. Van Allen had advised the board he was making arrangements to satisfy the judgments and delinquent accounts but had failed to provide the documentation of those measures as requested. The allegation of misrepresentation was evidenced by the applicants failure to disclose a prior conviction of Mr. Van Allen for a DUI in 1993. The applicant had been directed to provide a current financial statement, bank information, copies of Mr. Van Allen's judgments, a list of Mr. Van Allen's personal creditors and evidence of his program to repay the obligations. To date, the items had not been received.

When asked about the federal tax lien, Mr. Alejos provided a statement indicating he had only one payment of $901 remaining. He had no other outstanding debts. Mr. Alejos was informed he did not qualify for the limit he had requested, $250,000. It was then clarified the financial problems of the qualifier were not a part of the license application. That would only apply if Mr. Van Allen was an owner. When asked what size jobs he intended to do, Mr. Alejos replied $200,000.

CLUBB PLUMBING #42893 - RENEWAL HEARING

At 2:00 p.m., Wayne Lawrence Koch, Owner, was not present for the scheduled 1:15 p.m. hearing. The hearing notice had been sent certified mail on October 6, 1998. It had been received on October 14, 1998. The hearing was for possible violation of NRS 624.3013 (3), failure to establish financial responsibility. The hearing notice was entered into the record as EXHIBIT 1.

Kathy Stewart was sworn in and stated she had received a phone call from the wife of the licensee at approximately 1:12 p.m. She had indicated Wayne Koch's truck had broken down and she had asked that the hearing be rescheduled. Ms. Stewart had informed Mrs. Koch the matter would be heard and sent to findings of fact and conclusions of law.

The licensee had been required to furnish a financial statement for renewal along with verification that he was current on a payment to a related installment agreement to the IRS for a 1995 federal tax lien. The license had expired December 31, 1997 and the application for renewal had been received January 6, 1998. On January 14, 1998, the licensee had been requested to provide the information regarding the status of the tax lien. It had not been provided. On April 8, 1998, the application had been tabled by the Board and the licensee had been directed to provide the requested information. Again, the information had not been provided. On June 25, 1998, the Board had tabled the application again for an interview and the licensee had been directed to provide the requested information. On August 12, 1998, an interview had been scheduled but the licensee had not appeared. At that time, the application for renewal had been denied. A current credit report reflected 3 new California tax liens, a new federal tax lien which had been filed August 27, 1998 and 3 charge off accounts dated October 19, 1998 for $3,800. The license was currently inactive, not renewed.

APPLICATION INTERVIEW

RECHEL AND SONS CONSTRUCTION COMPANY - APPLICATION INTERVIEW

Jeffrey Michael Rechel, Owner, was present for the interview. The application had been considered on August 12,1998 and had been tabled for an interview to discuss Mr. Rechel's prior conviction history. There was a conviction dated April 12, 1988 to which Mr. Rechel had pled guilty to burglary, a felony. He had been placed under two years supervision by Realty Therapy Associates of Nevada, and underwent a residential treatment program. On December 28, 1988, Mr. Rechel had pled guilty to possession of a controlled substance for the purpose of sale, a felony. He had been incarcerated from December 28, 1988 to December 28, 1989, and was then placed on parole. He had been discharged from parole June 22, 1992. On November 18, 1991, Mr. Rechel had pled guilty to a charge of DUI and failure to maintain a travel lane. He had been fined $500, $100 for an administrative assessment fee, served two days in the Churchill County jail, and had been required to complete DUI school. On October 15, 1992, Mr. Rechel had pled guilty to one count of damaged property, a church cemetary or school, and two counts of malicious destruction of property. He had been sentenced to six months in jail on each count but sentence was suspended for one year. Mr. Rechel had then been required to perform 120 hours of community service, pay restitution of $293 to the school district and $2,800 to the City of Fallon. Both amounts appeared to have been paid. Information obtained from a recent credit report indicated there were two current collection accounts for Collection Services of Nevada and a civil judgment for Collection Services of Nevada which appeared to be related to the two collection accounts. The judgment was for approximately $1,600, and the collection accounts totaled $800.

Mr. Rechel said he was not aware of one of the collection accounts but he had made arrangements with the one he did know about to pay them off. He had paid them approximately $1,600 but there was still a balance remaining. When asked what happened regarding his conviction history, Mr. Rechel said he had been young and restless but what had occurred had probably saved his life. He had been headed down the wrong road. Since then, he had turned his life around 100%. He had gotten married and had four children. He was not proud of his record but he explained he had applied for a pardon two years ago in November. The Pardons Board had not yet gotten back to him to tell him what he needed to do next. However, he had been endorsed by the Fallon District Attorney, Kevin Pasquale, who had given him permission to use his name in his hearing with the Pardons Board. Mr. Rechel said he would make arrangements to pay off the collection account he had just learned about, explaining one of the accounts was for a medical bill which his insurance company had refused to pay. He was currently working for Priske Jones who was building houses in Fernley. He was in charge of foundations and framing of twelve units. Nine more would soon open, as well as a subdivision in Fallon. He had been guaranteed two years of employment. When asked what kind of projects he was interested in getting involved in, Mr. Rechel said he was only interested in single homes. He had picked a $200,000 limit so he could build a single family home in Fallon. He only wanted to build four or five a year. His father, who was a carpenter, worked with him and had done so for the last three years. He wanted to keep his business a small one in Fallon where he had lived his entire life. When asked if anyone could indemnify the license, Mr. Rechel said it was possible one of his family members could indemnify the license.

JIM MERRITT ROOFING INC. #42049 - DISCIPLINARY HEARING

The licensee, James Edward Merritt, President, was not present for the hearing, The license was suspended for no bond. The hearing notice had been mailed October 2, 1998 and returned to the office unclaimed on October 29, 1998. An amended notice of hearing had been mailed on October 22, 1998. A return receipt had not been received. A second notice had been sent regular mail. Hand delivery of the notice had been attempted to the address of record on November 3, 1998 but the licensee was not there.

The hearing was for possible violation of NRS 624.3017 (1), substandard workmanship; NRS 624.3017 (2), incomplete advertising; and NRS 624.3014 (1) (A), misuse of license. The hearing notice was entered into the record as EXHIBIT 1, and Gary Leonard, Investigator; Harold and Norma Felton, Complainants; and Shirley Brandt, Complainant, were sworn in.

Under questioning by Mr. Maloy, Ms. Brandt said she had entered into a contract with Merritt Roofing to roof the front door overhang. The contract contained an old license number, 0034453, rather than the current license number. After the project had been completed, Ms. Brandt had paid Merritt Roofing on February 20, 1998 but she had not been satisfied with the appearance of the deck. She contacted Merritt and showed him what she was displeased with. It was Ms. Brandt's contention Merritt had not mopped or hot tarred the deck and had put on a roofing material in sections of three which had tar oozing out between the seams. Tar had also gotten on the screen door. She had confronted Mr. Merritt and told him he either needed to redo it or return it to its original state. Thereafter, Ms. Brandt had filed a complaint regarding the workmanship. Both Mr. Maloy and Mr. Leonard had inspected the property on April 30, 1998 and later, on May 7, 1998, Mr. Leonard had returned to the property to meet with Mr. Merritt. Mr. Maloy then introduced photographs into the record as EXHIBIT 2. In June, Mr. Merritt performed repair work. After the work had been done the material began to lift as it didn't adhere to the surface or whatever was underneath it. It had curled. Mr. Leonard confirmed the curling. Ms. Brandt did not know if Mr. Merritt had ever returned to perform additional repairs, nonetheless, the matter had not been corrected. It was still lifting and peeling. Ms. Brandt then substantiated Mr. Merritt had not installed the railing correctly. It was crooked or off balance. Mr. Merritt had also gotten tar on the Anderson sliding screen door. When asked if she would be willing to allow the contractor to return to correct the problems if he could be located, Ms. Brandt replied yes, if the work was done properly.

When Mr. Leonard was asked what his opinion was of the workmanship, Mr. Leonard said it did not meet industry standard. He had found the railing sitting on the ground and the screen door had not been cleaned or replaced as agreed. Mr. Merritt had made one attempt to make repairs but when Mr. Leonard returned to the property in August the deck was lifting, curling, and cracking. When Mr. Leonard attempted to contact Mr. Merritt, Mr. Merritt had left a message on Mr. Leonard's voice mail indicating he would return Ms. Brandt's money in full. That was the last time Mr. Leonard had heard from Mr. Merritt. The money had never been returned nor had the problems been corrected. When Mr. Leonard had attempted service, it was evident no one was living in the house. Additionally, Mr. Leonard had heard Mr. Merritt had moved to California.

The Feltons had not been able to make the witness interview, therefore, although they were present, Mr. Leonard testified for them. He said the Feltons had signed an agreement with Mr. Merritt to do their roof. The work had been completed and an invoice containing the wrong license number had been submitted. The Feltons paid Mr. Merritt a total of $5,800. Thereafter, the Feltons filed a complaint with the board on August 20, 1998. When Mr. Leonard inspected the premises he found there was a leak in the roof and, to date, it still leaked. When Mr. Leonard had attempted to contact Mr. Merritt, no return call had ever been received on this case. Photographs were then entered into the record as EXHIBIT 3. There were no liens on the property. When asked what caused the leak, Mr. Leonard replied poor workmanship.

The evidentiary was closed.

SKIDMORE #29348 - FINANCIAL RESPONSIBILITY HEARING

The hearing was possible violation of NRS 623.263, failure to meet the criteria for establishing financial responsibility; NRS 624.3013 (3) (5), failure to meet financial responsibility; and failure to comply with the provisions of this chapter or the regulations of the board. The removal of the personal indemnification had triggered the hearing. A new financial statement had been requested and provided.

F. Randall Dee Skidmore, President, and Kathy Stewart were sworn in, Mr. Skidmore signed the stipulation, and the evidentiary was closed.

DESIGN ELECTRIC - APPLICATION HEARING

John W. Rodgers, Owner, and Kathy Stewart, were sworn in and Mr. Rodgers signed the stipulation. Rodney Sumpter, Legal Counsel, was present with Mr. Rodgers.

The hearing was for possible violation of NRS 624.263, failure to meet the criteria for establishing financial responsibility. The hearing notice was entered into the record as EXHIBIT 1.

The application was for a C2G, residential wiring, license. The allegation of failure to meet the criteria for establishing financial responsibility was evidenced by two separate filings for Chapter 7 bankruptcy, one in 1989 and the other in 1996. A filing for Chapter 13 bankruptcy had occurred in 1997. Mr. Rodgers had held a previous license wherein the bond had been paid out by the surety company to Norcal Electric Supply in the amount of $10,000. The license, #33745, had then been suspended for failure to maintain the required bond. Mr. Rodgers had been directed to provide a current financial statement and a bank verification form. Both had been provided along with a prepared response by counsel to the allegation.

Mr. Rodgers, along with Mr. Sumpter, explained, in depth, the reason for the bankruptcy filings. Mr. Rodgers also stated why he had not been able to reinstate the bond on his previous license. Mr. Rodgers was advised his financial statement did not support the limit he was asking for.

K/C ENTERPRISES #30471 - HEARING (Continued from 2/11/98 & 3/11/98)

In the hearing held on 3/11/98, the Board had ordered the licensee to take corrective action to replace a concrete driveway and concrete slab. Failure to comply with the corrective order would require the licensee to return before the Board for further disciplinary action. The Board had found the licensee in violation of NRS 624.3017 (1), workmanship which is not commensurate with the standards of the trade in general. The license had become inactive on May 1, 1998 for non renewal of the license.

Frank Marche, Complainant, and Kurt Pastory, Partner, were identified. Mr. Maloy stated the contractor had been given six months to make the corrections. The time period had lapsed in September shortly after the last Board meeting in Reno. To date, the work had not been completed. The homeowner had filed against the bond but the bonding company was awaiting the outcome of this hearing.

Mr. Pastory said he wanted the bonding company to take care of the job, to do it and then put a lien on his house. He wanted damages so that he could go after the subcontractor. His attorney had sent the subcontractor a letter, the same letter that had been sent to the bonding company and the board.

Discussion next focused on what action the Board could now take. Mr. Marche indicated he had gotten two estimates on how much it would cost to repair the concrete. Both were around $10,000, with one slightly higher.

MR. ZECH MOVED TO REVOKE LICENSE #30471.

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 Chairman Gregory at 3:28 p.m.

Respectfully Submitted,
 
 
 
 

Betty Wills, Recording Secretary
 
 
 
 

APPROVED:
 
 
 
 

Margi Grein, Executive Officer
 
 
 
 

Kim Gregory, Chairman