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

The meeting of the State Contractors Board was called to order by Chairman Kim Gregory at 8:47 a.m., Tuesday, December 15, 1998, State Contractors Board, Las Vegas, Nevada. Exhibit A is the Meeting Agenda and Exhibit B is the Sign In Log.

BOARD MEMBERS PRESENT:

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

BOARD MEMBERS ABSENT:

None

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. George Lyford, Director of SIU
Mr. Rick Berttuzzi, Criminal Investigator
Mr. Greg Mincheff, Investigator
Mr. Ron Ramsey, Investigator
Mr. Roy Schoonmaker, Criminal Investigator
Mr. Ron Schuster, Criminal Investigator
Mr. Clark Thomas, Investigator
Ms. Betty Wills, Recording Secretary

OTHERS PRESENT:

Cari Inkenbrandt, Court Reporter, CSR Associates of Nevada; Keith Gregory, Legal Counsel, Watt Residential Partners A California General; Allen Gunter, Partner, S I A Contractors II; Dalton Beck, QE, S I A Contractors II; Max Christianson, SMACNA, Southern Nevada; Richard Lisoe, MCA, Southern Nevada; Steve Holloway, AGC. South; John Madole, AGC, North; Jim Wilcox, President, Source One Inc.; Marge Brake, Project Manager, City of North Las Vegas; Dennis Barton, Manager, Big Town Mechanical; Keith Gregory, Legal Counsel for Award Custom Pools and Spas Inc.; Christopher Kelly Hunt, QE, Assured Construction; Harry Puet, Legal Counsel for Christopher Kelly Hunt; Jeffrey Robert Talley, President, Ace Signs, Inc.; Glen Lerner, Legal Counsel, Ace Signs, Inc.; Cheryl Fretwell, Bridal Elegance; Johnny Kim Larsen, President, J K Larsen Enterprises Inc; and Michael Bohn, Legal Counsel for J K Larsen Enterprises Inc.

Ms. Grein stated the agenda had been posted, in compliance with the open meeting law, on December 9, 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. Gregory called for a motion to approve the minutes of December 1, 1998.

APPLICATIONS

WATT RESIDENTIAL PARTNERS A CALIFORNIA GENERAL #40576 (B2 – Residential & Small Commercial) 60 DAY EXTENSION TO REPLACE QE, BOARD DECISION

Keith Gregory, Legal Counsel, was present to represent the company. No other officers were in attendance. Mr. Gregory explained that four new representatives of the company had joined it within the last month, the president, the vice president, the QE, and a new financial person. In the negotiations for the new people to come in and the old people to step out, no one had mentioned the fact that the QE had resigned. But in going through the paperwork, the two notices from the board granting the extensions for the QE were found. So, although the extensions had extended the time to 120 days, no one had ever submitted an application.

Attorney Gregory was informed a new financial statement was required due to the substantive changes. He stated a change of officer application had been submitted and a new QE application had been submitted on 11/25/98. He said he could not deny the company had been noticed but it needed another 30 days for the new people.

DESERT ROOFING INC. (C15a – Roofing) NEW APPLICATION

Alan Cahill, President, was present and informed the license had been approved with a limit of $250,000 and a $15.000 bond.

CAMCO PACIFIC CONSTRUCTION COMPANY INC. #37507 (B - General Building) RAISE IN LIMIT, RECONSIDERATION

Dewain Campbell, President, was present and informed the license had been approved with a limit of $8 million and a $50,000 Bond.

AIR BORN AC (C21 – Refrigeration & Air Conditioning), NEW APPLICATION, RECONSIDERATION, BOARD DECISION

Morris Childs, Owner, was present and notified the license had been approved with a limit of $10,000 and a $5,000 bond.

S I A CONTRACTORS II (B – General Building) NEW APPLICATION

Allen Gunter, Partner, and Dalton Beck, QE, were present and explained the site work portion of the project was currently under construction. It was a joint venture between S I A Contractors II and Northwestern Mutual Insurance Company. The total project amounted to $28,000,000. The construction portion itself was for $14,500,000. The loan was in place and funded. When it was determined the project was their own and the company had no intention to build for anyone else, it was decided to grant an E2 license for the project in South Meadows Parkway with an unlimited limit and a $50,000 bond.

Mr. Haney asked the representatives to write the board a letter acknowledging they agreed to change the license from a B to an E2 with its limitations.

MAINSTREAM DEVELOPMENT LLC #47977 (B2 – Residential & Small Commercial) ONE TIME RAISE IN LIMIT

Roy Holt, Member, was present and notified the one time raise in limit had been approved for $22 million, payment and performance bonds if required.

FEDERAL ELECTRIC CORP. #40842 (C2 – Electrical Contracting) CHANGE IN QUALIFIER

Cindie Gagliano, was present and notified the change in qualifier had been approved.

The remainder of the applications on the agenda were reviewed and discussion occurred on the following: Nos. 3-6, 12-13, 15-16, 26, 28, 32, 34-35, 37, 43-45, 50-51, 53-56, 68, 70-72, 74-79, 80, 83, 86, 91-92, 97, 99-100, 105-107, 117-118, and 121. The Amended Agenda was reviewed later in the day: Nos. 1, 7, 9, 13-17 and 21.

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

EXECUTIVE SESSION

LEGISLATIVE DISCUSSION

1. PROMPT PAY BDR

HEARING

SOURCE ONE INC. #8888C, #8888D, #8888E, #8888F, and #8888g - HEARING

Jim Wilcox, President, Roy Schoonmaker, Criminal Investigator, and George Lyford, Director of SIU, were sworn in. The hearing was for possible violation of NRS 624.3014 (2) (3), misuse of license; evasion of law; and NRS 624.305, unlawful use, assignment or transfer of license. The hearing notice was entered into the record as EXHIBIT 1 and the stipulation was signed.

Mr. Rizzo questioned Mr. Schoonmaker who informed the Board the investigation had been started on October 27, 1998. A complaint had been received when an advertisement had appeared in the Construction Notebook trade magazine. The ad indicated someone was selling five state of Nevada contractor’s licenses. From this point forward Mr. Schoonmaker read EXHIBIT C, prepared testimony, into the record. The account detailed the events leading up to the current hearing. In further questioning, Mr. Schoonmaker revealed the ad which had appeared in the Construction Notebook had been placed by Jim Wilcox and it had been paid for by him. Additionally, Mr. Schoonmaker said there was no doubt in his mind Mr. Wilcox was attempting to sell his licenses.

Mr. Wilcox admitted he had put the ad in the Construction Notebook as well as in the Sierra Plan Room. He then proceeded to explain what he had been attempting to sell. He believed he was attempting to sell his business, not his licenses, although he maintained the licenses were the only asset the business had of value. It was his opinion the problem was one of terminology. He then countered Mr. Schoonmaker’s testimony. When asked if he had signed and made the changes to the confidential agreement, Mr. Wilcox said yes. Discussion followed regarding the correct procedure for selling one’s company.

The evidentiary was closed.

1. EMPLOYMENT AGENCIES PROVIDING LABOR TO SUBCONTRACTORS

CITY OF NORTH LAS VEGAS, Request for Determination of Contractor’s License
Required to Re-Bid Vehicle Exhaust System, Central Garage Project No. 51219

BIG TOWN MECHANICAL, LLC #3241B & 18435A – APPLICATION HEARING

Dennis Barton, Manager, James Barton, Manager, and Greg Hatfield, Manager, were present for the application hearing which was for possible violation of NRS 624.3013 (3), failure to establish financial responsibility. The notice of hearing was entered into the record as EXHIBIT 1.

Discussion next centered on the removal of the indemnifier from the license, who had been the original owner. After the stipulation was signed, the hearing was reclassified as a Board interview.

MR. CARSON MOVED TO RECLASSIFY THE HEARING AS A BOARD INTERVIEW.
MR. NELSON SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.

The meeting was then closed to the public pursuant to NRS 241.030 to discuss financial and other data, which is confidential under NRS 624.110 (2).

A motion was made, seconded, and carried to reopen the meeting to the public.

The notice of hearing had been sent to Keith Gregory on behalf of the licensee, Fred E. Miller, Owner, on December 9, 1998. The 30-day notice requirement had been waived by Mr. Miller. The hearing was for possible violation of NRS 624.301 (1), abandonment; NRS 624.301 (4), failure to comply with the terms of contract or written warranty; NRS 624.3011 (1A), willful and prejudicial departure from or disregard of plans or specifications in any material respect without the consent of the owner; NRS 624.3012 (2), failure to pay monies when due; NRS 624.3013 (3), failure to establish financial responsibility; NRS 624.3013 (5), failure to comply with the provisions of this chapter or regulations of the board; NRS 624.3016 (1), any fraudulent or deceitful act of a contractor whereby substantial injury is sustained by another; NRS 624.3016 (5), failure to comply with NRS 597.713 through .719; and NRS 624.3017 (1), workmanship which is not commensurate with the standards of the trade in general. The notice of hearing was entered into the record as EXHIBIT 1 and Attorney Gregory signed the stipulation.

Attorney Gregory told the Board he had been asked on behalf of Award Pools to stipulate to all the violations as charged. Mr. Miller had asked him to say that although there was still the dispute between Mr. Miller and Bob Lane regarding the problems, Award Pools desired its license to be revoked.

Chairman Gregory asked the criminal investigators to interview each of the complainants for possible grounds which could be turned over to the District Attorney's office for prosecution.

Mr. Berttuzzi said he had been assigned to the case. In early October he had had a meeting with Attorney Gregory and Mr. Miller. He was currently awaiting documentation indicating when Mr. Lane left the employment of Award Pools and when the last valid contract had been entered into with an owner and Award Pools wherein Bob Lane had supervised. He said he had subpoenaed bank records to verify various deposits either prior to or after Bob Lane's employment with Award Pools. Mr. Berttuzzi said, on the surface, there appeared to be a possible fraud case which could be turned over.

EXECUTIVE SESSION (Continued)

FINANCIAL STATEMENT - SEPTEMBER 30, 1998

DISCIPLINARY HEARINGS

ASSURED CONSTRUCTION #46880 - DISCIPLINARY HEARING

Christopher Kelly Hunt, QE, and George Lyford were sworn in. Harry Puet, Legal Counsel for Christopher Kelly Hunt, was identified. The hearing was for possible violation of NRS 624.3013 (2) (3) & (5), misrepresentation of a material fact by an applicant or licensee in obtaining the license; failure to establish financial responsibility pursuant to NRS 624.220, 260, 263 and 265 at the time of renewal or at any other time when required by the board; failure in a material respect to comply with the provisions of this chapter or regulations of the board. The notice of hearing was entered into the record as EXHIBIT 1.

When the stipulation was addressed, for the record, Mr. Puet declared he was an attorney not licensed in the state of Nevada. He was licensed in Washington, D.C., and the World Court, The Hague, Netherlands. He stated the hearing was an administrative hearing rather than a court of law, therefore he believed he was qualified to appear on behalf of his client and for Joni Thornton, President. After some discussion regarding Mr. Puet's declaration, the stipulation was signed.

Mr. Lyford explained what had prompted an investigation involving Christopher Kelly Hunt. Upon searching the social security number Mr. Hunt had provided, the information had come back with the name Kelly C. Gunther, Claude K. Gunther, and C. K. Gunther. Nothing had come back as Mr. Hunt. A credit check on the same social security number came back to the same names referenced earlier. It also identified a federal tax lien in the amount of $9,500 and a state tax lien in the amount of $2,200. A copy of the two liens had been obtained from Los Angeles County. Further inquiries based on the same social security number revealed the same information. When Mr. Lyford asked Mr. Hunt about the discrepancy, Mr. Hunt told him he had changed his name to Chistopher Kelly Hunt from Claude K. Gunther but it had not been changed with a court of record. He had been using the name for approximately five years. It had been obtained by acquiring a California driver's license. It had then been used to acquire a Nevada driver's license. When Mr. Lyford had asked why he had done this, Mr. Hunt indicated he wanted to take his real father's birth name rather than the name which appeared on his birth certificate. A second reason was he was having problems with IRS and he felt by changing his name it would help him with his problems. He was continuing to use his real social security number but he was paying taxes on the name of Gunther. Mr. Hunt had indicated to Mr. Lyford he had approximately $11,000 in outstanding taxes. Following that meeting with Mr. Hunt, Mr. Lyford was informed Mr. Puet was filing in the family court in Nevada to change the name from Gunther to Hunt. Documentation had been provided to Mr. Lyford indicating the name change had been filed on October 28, 1998, Family Court, Clark County. Additional information had been provided indicating IRS had been contacted regarding the outstanding amount and an agreement had been entered into to pay the amount of $7,400 at the rate of $500 per month. On November 10, 1998, the Employment Development Department (EDD) had also been contacted and the amount of $2,402 was under negotiation. Joni Lynn Thornton, President had then been contacted and she advised Mr. Lyford she was an investor in Assured Construction. She had invested approximately $10,000 in the business with Mr. Hunt who handled the day to day operations of the business. Ms. Thornton was aware Mr. Hunt was known as Claude Gunther and that he did not like that name. She was not aware of what action Mr. Hunt had taken to change his name nor was she aware of what name was used on the application.

Mr. Puet stated he was the resident agent for Assured Construction and had been since the company's inception. He addressed the five allegations. Mr. Hunt's name had been legally changed on December 14, 1998 and Mr. Puet offered a raised seal copy of the action. Mr. Hunt's tax liens were then discussed. The tax liens did not affect the financial statement of the corporation as presented at the time of licensing. A copy of Mr. Hunt's birth certificate and social security card was provided along with a release from IRS. Mr. Puet said there was a lien in California against Confidence Builders, explaining what had occurred. Mr. Puet had communicated with EDD offering to resolve the matter. Mr. Puet then spoke as a character witness for Mr. Hunt and for Assured Construction. More discussion followed with Mr. Hunt.

The evidentiary was closed.

Jeffrey Robert Talley, President, was not present when the hearing began but arrived shortly thereafter with his attorney, Glen Lerner. The hearing was for possible violation of NRS 624.3015 (1); acting in the capacity of a contractor beyond the scope of the license; and NRS 624.3013 (1), failure to keep records showing all contracts, documents, receipts and disbursements when requested by the board. The hearing notice was entered into the records as EXHIBIT 1.

Greg Mincheff, Investigator; Ron Ramsey, Investigator; Ron Schuster, Criminal Investigator; and Cheryl Fretwell, Bridal Elegance, were sworn in.

Mr. Mincheff told the board there had been an industry regulation complaint opened against Ace Signs doing work at the 7/11 store on Cheyenne in July, 1998. When Mr. Mincheff had responded, he found a project in progress, the footing was being dug for a pole sign. Ace Signs was on the job working. They had a contract for this electrical sign and a permit had been pulled. The contract indicated Ace signs was to supply all necessary materials, labor, and equipment to install the electrical sign. It further stated the electrical conduit and wiring would be supplied from the building but they were to supply the electrical connections. Ace Signs license did not allow for that type of electrical connections to be made. Mr. Mincheff said American Signs finished the project. On July 24, 1998, Ace Signs had notified Metcalf Builders, the general contractor, it was withdrawing from the contract because it did not have the appropriate contractor's license to do the project.

Mr. Ramsey described the circumstances surrounding his investigation. He said he had received an anonymous phone call on July 23, 1998 stating Ace Signs was in the process of installing an electrical sign at Bridal Elegance. When Mr. Ramsey arrived at the site that evening there was no evidence of anyone installing a sign at that time. Mr. Ramsey then contacted Ms. Fretwell who indicated Ace Signs had installed a sign and had just completed the work that day. However, the E in the sign was not in operation. Mr. Ramsey said he had reviewed the Ace Signs proposal and it called for the installation of an electrical illuminated sign at Bridal Elegance. To Mr. Ramsey's knowledge, Ace Signs completed the installation of that sign.

Ms. Fretwell stated she had paid Ace Signs a required deposit of $2,000 to begin working on the project for her. No additional funds had since been paid to Ace Signs. The proposed total for the sign was $3,698. She said she currently had an illuminated sign which had been installed by Ace Signs. She had witnessed the installation of the sign by Ace Signs. No other contractor had worked on it. She never had a formal contract with Ace Signs and the only item she had was the receipt for $2,000. When Ace Signs approached her on approximately July 24, 1998, to have her sign a new contract document with backdated dates on it, she refused. Ms. Fretwell said there were a lot of problems and the location of her business had suffered damage due to Ace Sign's installation.

Mr. Talley and Mr. Lerner arrived at 2:42 p.m. Mr. Talley was sworn in. Mr. Knapp asked Mr. Talley if he currently held a C6 license. Mr. Talley replied no, he only had a business license to retail product only.

Mr. Lerner said one of the problems was an issue as to time. He then detailed the Board's order to cease and desist wherein Mr. Talley was not going to do any type of installations. He had to operate within the parameters of his license. The problem Mr. Talley had with this was he had outstanding contracts that he had an obligation to fulfill due to the fact he had been paid for the jobs and had begun work on them. Mr. Lerner said he was not sure if the Board had actually acquiesced and were going to allow Mr. Talley to complete those jobs or not, but he did not believe there was anything on record stating Mr. Talley was told not to complete those jobs.

The status of Mr. Talley's license was then reviewed. Mr. Knapp said that as of today, Mr. Talley had not paid the previous fine that had been imposed on May 28, 1998. Additionally, Mr. Knapp stated he had not seen a list of contracts Mr. Talley was working on. The only thing he had received was a one-page fax of a contract of the speedway. Dialogue then ensued regarding contracts and documentation.

The evidentiary was closed.

In discussion, Mr. Zech said he would prefer to approve the application contingent upon Ace Signs paying the fine and getting reinstated. Mr. Lindell stated he found the QE unsatisfactory for the license.

J K LARSEN ENTERPRISES INC. #27477 - DISCIPLINARY HEARING

Johnny Kim Larsen, President, and Michael Bohn, Legal Counsel were not present when the hearing began but arrived shortly thereafter.

The hearing was for violation of NRS 624.3013 (3), failure to establish financial responsibility. The hearing notice was entered into the record as EXHIBIT 1.

Mr. Larsen, and Clark Thomas, Investigator, were sworn in and it was noted the requested financial statement had been received the previous day. The stipulation was then signed.

The licensee was informed the meeting was for financial review only, therefore, he could close the meeting to the public if he chose to do so. Mr. Larsen opted to close the meeting to the public. 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).

A financial review followed. the meeting was then reopened to the public and the evidentiary was closed.

PROFESSIONAL/LEGAL SERVICES

The Board voted to renew Mr. Reese's contract for a probationary period of 6 months only. Mr. Haney was to be Chief Counsel for the Board with Mr. Reese's services to be provided as needed.

PUBLIC COMMENT

No one from the general public was present to speak for or against any items on the agenda.
There being no further business to come before the Board, the meeting was adjourned by Chairman Gregory at 4:40 p.m.

Respectfully Submitted,
Betty Wills, Recording Secretary
 

APPROVED:
Margi Grein, Executive Officer
Kim Gregory, Chairman