CLB Minutes 08/21/2013 CONTRACTORS
LICENSING BOARD
Minutes
August 21 , 2013
August 21, 2013
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MINUTES OF THE ME E16
OF THE
COLLIER COUNTY CONTRACTOR l� G BOARD
August 21, 2013
Naples, Florida
LET IT BE REMEMBERED, that the Collier County Contractors' Licensing
Board, having conducted business herein, met on this date at 9:00 AM in
REGULAR SESSION in Administrative Building "F," 3rd Floor, Collier County
Government Complex, Naples, Florida, with the following Members present:
Chairman: Richard Joslin
Vice Chair: Patrick White
Members: Michael Boyd
Ronald Donino
Terry Jerulle
Kyle Lantz
Thomas Lykos
Robert Meister
ALSO PRESENT:
Michael Ossorio — Supervisor, Contractors' Licensing Office
Kevin Noell, Esq. — Assistant County Attorney
James F. Morey, Esq. — Attorney for the Contractors' Licensing Board
Rob Ganguli — Licensing Compliance Officer
August 21, 2013
Any person who decides to appeal a decision of this Board will need a record of the
proceedings and may need to ensure that a verbatim record of the proceedings is
made, which record includes the testimony and evidence upon which the Appeal is
to be based.
I. ROLL CALL:
Chairman Richard Joslin called the meeting to order at 9:04 AM and read the
procedures to be followed to appeal a decision.
Roll call was taken and a quorum was established. Eight voting members were present.
II. AGENDA — ADDITIONS, DELETIONS, OR CHANGES:
Changed.
• Under Item X, "Next Meeting Date"
o The next meeting will be held on Wednesday, October 16, 2013
Rescheduled.
• Under Item VI, "New Business"
o (D) Cruz Olivarez — Review of Credit Report was rescheduled and will
be heard at the Next Board meeting.
III. APPROVAL OF AGENDA:
Kyle Lantz moved to approve the Agenda as amended. Thomas Lykos offered a Second
in support of the motion. Carried unanimously, 8 — 0.
IV. APPROVAL OF MINUTES — JULY 17, 2013:
Vice Chairman White moved to approve the Minutes of the July 17, 2013 meeting
as submitted. Chairman Richard Joslin offered a Second in support of the motion.
Carried unanimously, 8 — 0.
V. DISCUSSION
(None)
VI. NEW BUSINESS:
(Note: Regarding cases heard under Section VI and Section VIII, respectively, the
individuals who testified were first sworn in by the Attorney for the Board.)
A. Jimmy M. Dean — Review of Credit Report(s)
Michael Ossorio provided background information:
• Mr. Dean had applied for a General Contractor's license,
• His company, J.D. Design Construction, Inc., was incorporated on
June 24, 2013,
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August 21, 2013
• He took the Business Procedures test and applicable Trades test,
• Due to questions concerning his credit, Mr. Dean's application was forwarded
to the Contractors' Licensing Board for a full review.
Chairman Joslin asked Mr. Dean to provide an overview of his experience.
Jimmy Dean replied:
• He has been in the construction business all of his life, and his father owned a
construction company in Collier County,
• Has been a resident of Collier County for the past 43 years,
• He has owned a design business in Collier County for the past 15 years,
• He began working in concrete and moved into other fields as needed,
• When business was good, he overspent — bought lots of "toys" for his
children and himself — when work became scarce, he sold the toys to keep a
roof over his children's heads and is in the process of repairing his credit,
• He acknowledged the process to regain his good credit standing was slow.
Kyle Lantz asked if the construction business was totally separate from the design
business, including a new name.
Mr. Dean replied, "Everything is separate."
Mr. Lantz noted the information packet did not contain a credit report for the design
business.
Jimmy Dean responded he had never filed for a credit report on the design business.
Michael Qssorio noted Mr. Dean was required to file with the State and his FICA
scores will be reviewed.
Mr. Dean stated he will be required to provide a $20,000 bond. He will not register
with the State or provide the bond until after the Contractors' Licensing Board has
made a decision.
Chairman Joslin asked Mr. Dean to explain the two civil judgments which were
noted on his credit report.
Mr. Dean stated one was for a boat which should not have appeared on the
judgment because it was sold and the other was for a car. He is trying to work out a
payment plan with the Suncoast Federal Credit Union.
Chairman Joslin stated the applicant's credit scores were not good.
Mr. Dean stated he was disputing the "sale" by the credit company since they sold
the boat "short" — the purchase price was within $500 of his balance.
Terry Jerulle stated he is a General Contractor and noted that General Contractors
accept deposits from clients as well as large sums of money from clients to pay
subcontractors. His concern: would the applicant be responsible enough to handle
the money and pay the bills from vendors. He further stated the credit report
indicated Mr. Dean had not been responsible in the past and asked what assurances
could be provided to the Board concerning his future dealings.
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August 21, 2013
Mr. Dean stated his businesses have always paid their bills. The business comes
first. The problem has been in his personal credit. His clients were paid before he
ever received any money. His business credit is good.
Terry Jerulle stated the applicant would be the trustee of large sums of money to
pay the subcontractors and obtain releases of liens. Could his clients trust him? He
again asked for assurances.
Jimmy Dean replied the only thing he could give was his word. He stated he had a
system in place to ensure a release of lien was obtained when the final payment was
issued to a vendor. He further stated, "My name is my business. I don't advertise a
lot — its word of mouth." He acknowledged his personal credit was terrible but his
business reputation was good.
Vice Chairman White stated there was approximately $5,200 owed for various
items, not including Suncoast and SLM. He asked if it would be possible to pay off
the items within a reasonable period of time. He stated that he could only approve
the application if a period of probation was included.
Mr. Dean indicated he would not object to a probationary period as part of the
approval process.
When asked about his working capital, Mr. Dean indicated he had approximately
$19,000 in the bank to be used to for business expenses.
Thomas Lykos stated he is also a General Contractor. He noted that ten of the items
in collection were for less than $1,000. He indicated it would have indicated that
Mr. Dean had a plan in place to handle his debts if he had paid off as many of the
small debts as possible prior to the Board's Hearing. He was concerned that Mr.
Dean did not have any idea of how to pay off his debts — that he did not have a good
understanding of how to manage moving forward. His suggestion was to reduce the
number of the smaller debts, leaving only a few large ones, and devise a plan to pay
them off. His concern: if Mr. Dean could not manage his previous financial issues,
how would he be able to manage larger dollar amounts due to the responsibilities
that he would be taking on as a General Contractor?
Vice Chairman White asked Mr. Dean if he had discussed the credit report with the
person who was helping him file with the State.
Mr. Dean stated the only concern was the two judgments and that he should address
those debts. He further stated the plan was to pay off the smaller debts within the
year. He continued that his goal was to have everything paid by the end of this year.
He reiterated he wanted to obtain the General Contractors license in order to
generate income since the drafting business is slow at the moment.
Chairman Joslin asked for Staff's opinion and the response from Michael Ossorio
was, "None."
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August 21, 2013
Vice Chairman White moved to approve the application by Jimmy M. Dean
for a General Contractor's License on a probationary basis. The application
is to return before the Board in six months and provide a markedly
improved credit report. The applicant will be required to present specifics
on how each item was handled, including the two outstanding public record
items.
Terry Jerulle was concerned that the subcontractors might not be paid in the future.
There may be times when other people will be paid before the General Contractor.
He suggested specifically defining the Board's goals.
Vice Chairman White re- stated his motion: To approve the application by Jimmy
M. Dean for a General Contractor's license on a six -month probationary basis. At
the end of six months, Mr. Dean will be required to provide an updated personal
credit report and credit reports for both the GC and design businesses. The
personal credit report must show payment for the following items:
• Amera,4ssit - $310.00
• Capital One - $973.00
• Design Rec - $158.00 (original creditor. medical)
• Enhanced Rcvr Co - $981.00 (original creditor: Sprint)
• FFCC Cleveland - $160.00 (original creditor: medical)
• FST Premiere - $375.00
• FST Premiere - $714.00
• Gulf Coast Collections - $150.00 (original creditor: medical)
• Jeff Cap System - $767.00 (original creditor: Wachoviu Bunk checking
accounts)
• Medical Business Bureau - $118.00 (original creditor. medical)
• Midland Fund: $2,481.00 (original creditor. T Mobile)
• Midland Fund: $1,26700 (original creditor. Verizon Wireless)
• Midland MCM. $1,043.00 (original creditor HSBC Bank — Nevada)
Each item is to be paid in full or an explanation of the dispute resolution process
provided.
Additionally there is to be marked improvement for the following item:
• Capital One - $9,947.00
Removal or a reasonable explanation of the dispute process concerning the
following items:
• SLM Financial Co - $8,290.00
• Suncoast Credit Unit- $15,426.00
Resolution of the civil judgments in the Courts of Collier and Lee Counties.
Finally, Mr. Dean is to provide proof that he obtained a $20,000 bond to satisfy the
State of Florida's requirements.
August 21, 2013
Kyle Lantz offered a Second in support of the motion.
Chairman Joslin called for the vote. Motion carried, 8 — 0.
B. Misena Spahiu — Review of Tile Marble Application, per Board's Order
Attorney Robert Groh represented Misena Spahiu. He noted Bernard Spahiu who
was the co -owner of the business and CEO of the company, as well as husband to
Misena, was also present.
Michael Ossorio provided an overview of the previous Hearing:
• There was an administrative finding of guilt because Naples Expert Flooring,
Inc. had not provided Workers' Compensation insurance coverage.
• The corporation and Misena Spahiu, as Qualifier, were placed on probation
for the floor covering license.
• There is a full application before the Board for a tile and marble license.
Since the Qualifier and the Company are on probation, the Board must
review the application.
• The assessed penalties have been paid.
• Ms. Spahiu did take and pass the Business Procedures Test.
• She has been emailing the office on a weekly basis concerning ongoing jobs.
Attorney Groh noted Naples Expert Flooring, Inc. has been in business since 2006.
He stated there have been no claims or lawsuits filed against the company which is
unusual in the construction business.
Michael Ossorio:
• Ms. Spahiu as the Qualifier for Naples Expert Flooring, Inc. is on probation
for two years.
• He recommended approving the application for a tile and marble license but
also placing it on probation for a period of two years.
Attorney Groh confirmed a Citation had been issued in 2008 with a fine of $300 as
well as a second Citation in 2012, also with a fine of $300.
Vice Cbairman White noted there were benefits to using an employee leasing firm
to provide coverage rather than Naples Expert Flooring's system, which was to test
an employee's skill level first and then obtain coverage.
Mr. Ossorio noted Misena Spahiu had pleaded guilty during the previous hearing.
She claimed to have confused obtaining a policy binder with obtaining covered.
Vice Chairman White stated, whether intention or not, the company cut corners
and was caught which was the reason for the two -year probationary period. He
concurred with Mr. Ossorio, stating any license application approved would require
a concurrent probationary period. Anything other than a conditional approval would
not make sense.
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August 21, 2013
Thomas Lykos stated providing Workers' Compensation insurance is not a grey
area. To not provide it, is not negotiable. It is not something left to chance.
Attorney Groh stated the fines assessed by the Board have been paid, the insurance
coverage was obtained, and every condition requested by the Board has been
satisfied. Misena Spahiu is reporting new jobs to the Supervisor's office on a
weekly basis as ordered. They have been abiding by the Board's decision.
In response to a question from Vice Chairman White, Bernard Spahiu stated it
would not be a problem if the tile /marble license was issued with a probationary
period since most of their jobs were from Hadinger Flooring.
Mr. Ossorio confirmed since the Qualifer was the same, only one phone call per
week would be necessary.
Chairman Joslin asked if proof was provided to confirm that the Workers'
Compensation policy was still in effect.
Terry Jerulle asked Mr. Spahiu if he had Workers' Compensation insurance and the
name of the insurance company, and the response was Lugert Insurance Co.
Michael Ossorio stated he did have proof of the certificate for insurance for the
floor covering business as well as liability coverage. The same would apply to the
tile and marble business.
Kyle Lantz moved to approve the application of Naples Expert Flooring, Inc. for a
tile and marble license, provided the same restrictions from the previous Board
Hearing applied to the new application, including a probation period of two year
which will run concurrent with the previous probationary period Vice Chairman
White offered a Second in support of the motion.
Motion carried, 6 — "Yes "12 — "No. " Thomas Lykos and Terry Jerulle were
opposed
C. William M. Barnes — Reinstatement of License without Re- Testing
Michael Ossorio provided background information:
• Barnes Mechanical Insulation, Inc. was incorporated in 1989
• His license lapsed in 2009
• As prescribed by the Ordinance, Mr. Barns is required to take the Business
Procedures Test
• He has requested a Waiver
• Barnes Mechanical Insulation is license in Lee County and Cape Coral
• He has maintained his continuing education requirements
• His personal credit score is outstanding
• The County does not have an issue with granting his application for a Waiver
of the testing requirement.
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August 21, 2013
William Barnes stated he is also licensed in Hendry and Charlotte Counties. There
was a "mishap" and the bookkeeper didn't pay the renewal fees. He stated he will
pay the back fees for the past three years.
Chairman Joslin asked for the County's recommendation.
Michael Ossorio stated as long as all necessary back fees are paid, the County
would not have an objection to the Board approving the application to waive the
testing requirements.
Vice Chairman White moved to approve the application of William M. Barnes for
a Waiver of the testing requirement and to grant an insulation license. Kyle Lantz
offered a Second in support of the motion. Carried unanimously, 8 — 0.
VII. OLD BUSINESS:
A. Orders of the Board
Thomas Lykos moved to approve authorizing the Chairman to sign the Orders
of the Board. Terry Jerulle offered a Second in support of the motion.
Carried unanimously, 8 — 0.
B. Darlene Rowe, d /b /a Dazzling Floors, Inc. — Six month Review of Credit Report
Michael Ossorio:
• On August 15, 2012, the Board placed Ms. Rowe on a six -month
probationary period
• On February 20, 2013, Ms. Rowe returned to present an update credit report
o Probation was continued for another six months
• Ms. Rowe has returned with a new credit report, dated August 5, 2013.
o Previous credit score: 474
o Current credit score: 519
• The County does ve a threshold
• The Admi ' rative Polic through the State of Florida is 649 or 650
_ ,w
Chairma t it appeared that she was working on improving her credit
tting which was what she had been directed to do.
/ Darlene Rowe noted she has obtained medical insurance.
Michael Ossorio confirmed Ms. Rowe had been placed on probation for a one -year
period and her company has been in business for one year. There have been no
complaints filed against her company.
Chairman Joslin asked if probation were terminated would Ms. Rowe continue
to remove items from her credit report and her response was, "absolutely."
Kyle Lantz asked for clarification concerning the period of time when a company
is to be in business before the personal credit is not required to be considered. The
response was one year.
August 21, 2013
In response to a question from Thomas Lykos, Ms. Rowe confirmed her company
installs flooring as a subcontractor. Her clients include Hadinger, Home Depot,
Lowe's and Carpet One.
Attorney James Morey reviewed the Board's Order and stated that Ms. Rowe
had been placed on probation until February 20, 2014 with two six -month reviews.
Ms. Rowe stated she did not recall receiving a copy of the Order and disputed the
time lime.
Chairman Joslin read from the Order, acknowledging that on February, 2013, she
was granted a conditional license and was placed on probation for a period of one
year period. She was to provide updated personal and business credit reports six
months from the date of the Hearing (February 20, 2013) and at one year from the
date of the Hearing.
Vice Chairman White confirmed the language of the Order stated what was
intended by the Board. He stated after reviewing the credit report, while he could
see there had been improvement, he would still recommend reviewing her credit in
another six months. He further stated if Ms. Rowe had not shown improvement, the
probation would have been terminated and her license would have been revoked.
Michael Ossorio reminded Ms. Rowe there was a judgment against the business for
$11,269.
Chairman Joslin stated the Board would comply with its written Order. He further
stated Ms. Rowe had an opportunity to appeal the Order if she thought there had
been an error, but that time had passed. He confirmed the probation period will end
in February, 2014. He stated as long as there was improvement shown on the 2013
credit report, the probation would end.
Thomas Lykos advised Ms. Rowe to pay off as many of the past due items on her
personal credit report as possible because they were small amounts. Having a
number of past due balances indicates the business does not have a plan to handle its
finances. Payment makes the report much cleaner and improves the credit score.
Consensus: Ms. Rowe will return in February, 2014.
C. Recommendation of Resolution to the Board
Thomas Lykos asked for clarification regarding the recommendation to be made
to the Board of County Commissioners concerning the proposed changes to the
Ordinance as discussed at the last meeting.
Attorney Morey stated the Board approved sending a recommendation to BCC in
the form of a Resolution.
Michael Ossorio stated Resolution #2013 -01 was in process and had not been
signed by the Chairman. Jamie French is reviewing the document and it will be
presented to DSAC for their review. It will return to the Contractors Licensing
Board for signature. The Resolution will then be sent to the County Attorney's
August 21, 2013
Office. An Executive Summary will be drafted and placed on the BCC's Agenda.
Mr. Lykos noted the subject was presented at the last CBIA meeting. CBIA
wished to impress upon the BCC that trust was placed in the State's Attorney's
Office concerning the 3rd Citations. There was no direct penalty for a third violation
because CBIA was relying on the State to proceed with a felony charge. CBIA made
a recommendation based upon the anticipated follow - through of the State's
Attorney's office. It is critically important that the State's Attorney's Office takes
the third - violation cases seriously.
Vice Chairman White asked to be informed of DSAC's next meeting date so that
one or more of the CLB, members may attend to reinforce CBIA's message. He
suggested the County send a report to the CLB members if a third violation occurs
detailing how it will be handled.
Michael Ossorio stated he will work with the Department of Business and
Professional Regulation. He noted very few third violation citations have been
issued. He stated, "We take it seriously. If it's a third offense, a Citation isn't going
to do anything." The penalty for a second offense is $2,000. He stated the issue can
be re- addressed if needed.
He further stated the Department of Business and Professional Regulation can
issue fines as well.
Thomas Lykos stated the Industry is seeking stiff fines and penalties not only to
protect the public but also to protect the law- abiding contractors who follow the
regulations.
Michael Ossorio confirmed the proposed Resolution would be brought before
DSAC for its review and DSAC has been very supportive in the past.
VIII. PUBLIC HEARINGS:
A. Case #2013 -07: BCC vs. Albert J. Scott, d/b /a "Beaumont Communications,
LLC"
Chairman Joslin noted a Stipulation had been agreed upon between the parties.
Rob Ganguli, Licensing Compliance Officer, requested to place the Stipulation into
evidence.
Thomas. Lykos moved to approve placing Stipulation in Case #2013 -07, Board of
County Commissioners vs. Albert J. Scott, d/b /a Beaumont Communications, Inc.,
License No. EF20000736 / /CC #33194, Respondent, into evidence. Kyle Lantz
offered a Second in support. Carried unanimously, 8 — 0.
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August 21, 2013
Rob Ganguli read the terms of the Stipulation into the record as follows:
1. The Respondent admits the allegations contained in the Administrative
Complaint for the purposes of this Stipulation and settlement of this matter.
2. The Respondent and the Board hereby agree that he will be subject to probation
for a period of twenty -four months whereby the Respondent will perform his
outstanding activities under the supervision of the Board and will obtain all
permits prior to performing any work requiring such permitting.
3. Respondent voluntarily agrees to pay $750.00 in administrative costs to Collier
County within ten days of the August 21, 2013 Contractors' Licensing Board
Hearing.
4. In the event the Respondent violates Paragraph 2 of the noted Stipulation
Agreement while on probation, his license /certificate will be immediately
suspended and a complaint will be forwarded to the State Construction Industry
Licensing Board with a recommendation for further action.
Michael Ossorio noted the County Attorney's Office and the Contractors' Licensing
Office agreed to the terms of the Stipulation.
Attorney Morey noted the Board can deny the issuance of building permits or issue
them with specific conditions.
Chairman Joslin called for a vote to approve the Stipulation as written.
Motion carried, 6 — "Yes,72 — "No." Kyle Lantz and Thomas Lykos were opposed
IX. REPORTS:
(None)
X. MEMBER COMMENTS:
(None)
XI. NEXT MEETING DATE: Wednesday, October 16, 2013
BCC Chambers, 3rd Floor — Administrative Building "F,"
Government Complex, 3301 E. Tamiami Trail, Naples, FL
There being no further business for the good of the County, the meeting was adjourned
by the order of the Chairman at 10:36 AM.
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August 21, 2013
COLLIER COUNTY CONTRACTORS
LICENSING BOARD
Richard Joslin, Chairman
The Minutes were approved by the im Chairman on Aa 2013
"as submitted" [_] OR "as amended" [ Q-
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