CLB Minutes 09/17/2014 CONTRACTORS
LICENSING
BOARD
Minutes
September 17 , 2014
September 17,2014
MINUTES
OF THE COLLIER COUNTY
CONTRACTORS' LICENSING BOARD MEETING
September 17, 2014
Naples, Florida a:\ 15 ?J ,4
By
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: Patrick White
Vice Chair: Thomas Lykos
Members: Michael Boyd
Ronald Donino
Terry Jerulle
Richard Joslin
Kyle Lantz
Gary McNally
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
1
r
co t-re-r County
COLLIER COUNTY CONTRACTORS' LICENSING BOARD
AGENDA
SEPTEMBER 17, 2014
9:00 A.M.
COLLIER COUNTY GOVERNMENT CENTER
ADMINISTRATIVE BUILDING
BOARD OF COUNTY COMMISSIONERS CHAMBERS
ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE
PROCEEDINGS PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD
OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THAT TESTIMONY AND EVIDENCE UPON WHICH
THE APPEAL IS TO BE BASED.
I. ROLL CALL
II. ADDITIONS OR DELETIONS:
III. APPROVAL OF AGENDA:
IV. APPROVAL OF MINUTES:
DATE: August 20, 2014
V. DISCUSSION:
VI. NEW BUSINESS:
(A) Orders of the Board
(B) Barry Helff- Brothers of SW FL, LLC (DBA) Statewide Painting-Second entity application
(C) Todd Fabry, Florida Custom Carpentry, LLC-Waiver of examination(s)
(D) Marius Pughiuc, Advanced Flooring of SWFL, Inc.- Review of credit report(s)
(E) Derek Jenks- Contesting Citation(s)
(F) George Pickhardt—Contesting Citation(s)
VII. OLD BUSINESS:
(A) Osvaldo E. Gonzalez Gutierrez, Calimete Premium Quality, Inc.-Review of Business Plan
VIII. PUBLIC HEARINGS:
IX. REPORTS:
X. NEXT MEETING DATE: WEDNESDAY, OCTOBER 15, 2014
COLLIER COUNTY GOVERNMENT CENTER
ADMINISTRATIVE BUILDING
THIRD FLOOR IN COMMISSIONER'S CHAMBERS
3299 E. TAMIAMI TRAIL
NAPLES, FL 34112
September 17,2014
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 Patrick White called the meeting to order at 9:00 AM and read the
procedures to be followed to appeal a decision of the Board.
Roll call was taken and a quorum was established; eight members were present.
II. AGENDA—ADDITIONS,DELETIONS, OR CHANGES:
Deletion:
• Under Item VI, "New Business,"
o (E): Derek Jenks—Contesting Citations(s)
Addition:
• Under Item VII, "Old Business,"
o (B): Form 8-B, "Memorandum of Voting Conflict"
III. APPROVAL OF AGENDA:
Vice Chairman Thomas Lykos moved to approve the Agenda as amended. Gary
McNally offered a Second in support of the motion. Carried unanimously, 8—0.
IV. APPROVAL OF MINUTES—AUGUST 20,2014:
Richard Joslin moved to approve the Minutes of the August 20, 2014 meeting as
submitted. Ronald Donino offered a Second in support of the motion. Carried
unanimously, 8—0.
V. DISCUSSION:
• Chairman White noted that based upon a case heard by the Board during the
August meeting,there have been subsequent discussions concerning the Code,
the Ordinance as amended, and some of the Statutory provisions regarding
licensure. He stated there may be future presentations to the Board concerning
the issue.
VI. NEW BUSINESS:
A. Orders of the Board
Vice Chairman Thomas Lykos moved to approve authorizing the Chair to sign
the Orders of the Board. Richard Joslin offered a Second in support of the
motion. Carried unanimously, 8— 0.
2
September 17,2014
(Note: With reference to the cases heard under Section VI, the individuals who
testified were first sworn in by the Attorney for the Board)
B. Barry Helff —Application for Second Entity
(d/b/a "Statewide Painting and Pressure Washing, Inc."
Second Entity: "Brothers of SW FL, LLC")
Kyle Lantz stated that approximately ten years earlier, he had worked with Barry
Helff. He further stated that he did not recognize Mr. Helff initially and felt there
was no conflict of interest.
Chairman White noted, `for the record,"the Applicant indicated there was no
issue on his part.
Barry Helff stated he was appearing before the Board to open a Second Entity.
His intention was to separate his businesses, i.e., new construction from painting
jobs. He has suffered recent health issues --needs to "take it easier" -- and other
family members will assist him.
Michael Ossorio:
• The Applicant qualified Statewide Painting and Pressure Washing, Inc.
• One fictitious name; one corporation
Mr. Helff stated he was not ready to relinquish his business and will maintain
control—he owns both companies outright. His brother and his nephew will assist
him and may own a piece of one business in the future. He will maintain sole
control of Statewide Painting and Pressure Washing, Inc. He stated he wants the
Second Entity ("Brothers of SW FL,LLC") because he is not"set up"to bring in
partners at this time.
Chairman White: Is that because the new company will be set up as a limited
liability company while the first company has been incorporated?
Mr. Helff: Yes. That's part of it.
Terry Jerulle asked why the Applicant was not making his brother a partner at this
time.
Mr.Helff replied he wanted to make sure he was able to it. He stated his nephew
is currently working for him while his brother resides in New Jersey. He stated his
plan was not to bring in a partner at the beginning because he was backing the new
company and will be involved in it. His plan is to "ease" his brother into the
business.
Terry Jerulle: So you want to qualify two different painting companies under the
same name; you will be the sole Qualifier and owner of both?
Mr. Helff: Yes. I didn't realize that when I did the"d/b/a." But it's an issue. My
accountant didn't tell me not to do it.
Vice Chairman Lykos:
Q. You have one company now. What is the name of that company?
A. Statewide Painting and Pressure Cleaning, Inc.
3
September 17,2014
Q. That company will remain?
A. Yes.
Q. The new company will be called what?
A. Brothers of Southwest Florida, LLC, d/b/a Statewide Painting.
Q. So you will have a"d/b/a" with a name similar to your existing company?
A. Yes.
Q. According to your application, your reason for qualifying the Second Entity
was to separate out new construction from re-painting.
A. Yes.
Q. Why do you need to do that?
A. Like I said, I'm spending so much time and I can't devote it to both.
Q. Why can't one company paint new construction and do re-paints?
A. They can. I have been doing that for the last 15 years. As I said, I would like
to bring in a partner. But since everything is through"Barry Helff' --- I'm not
really geared to bring in a partner in the future. But with my family's health
problems, I am trying to set it up for the future so I can take it easy. I'm so
entwined in Statewide Painting and Pressure Cleaning that it's very difficult to
bring in a partner as it is set up right now. What I really want to do is set up
anew. So I'm set up where I can give a percentage of the business and not be as
involved in the business. In a clean,new business,they will not be assuming
anything from the existing business.
Terry Jerulle asked why the Applicant didn't just close down the first company.
A. I could do that—I didn't think of that—I just have so much work that I'm in the
middle of I have my vendors --- it's just difficult for vendors to switch over in
the middle of a project.
Richard Joslin asked the Applicant about his brother's experience.
A. My brother worked for me years ago. He is in New Jersey and does handyman
work and painting. He went back to New Jersey in 2008 or 2009.
Q. With his limited qualifications,why wouldn't you bring him into your company
now as a corporate officer and let him get his feet wet before you open another
business that you will have to definitely control?
A. It probably would be easier,but I am trying to build for the future.
Kyle Lantz:
Q. Currently under Statewide Painting, you do new construction and re-paints? Is
that correct?
A. Yes.
Q. When you separate the companies, what will Statewide(the existing entity
now) do?
A. When I finish my current projects, I will go into re-paints.
Q. Strictly repaints.
A. Yes. That way, I can slow down a little bit and not be physically out there as
much.
Q. And the new business will do ...?
A. It will do the new construction ... yes.
4
September 17,2014
Q. You will maintain control of the repaints and give a piece of the pie away for
the new construction work later on down the road but not today. Is that
correct?
A. Yes, exactly.
Richard Joslin:
Q. Is your company operated on a cash basis when you buy paint and materials?
A. No.
Q. I'm not seeing very much on your credit report.
A. My average bill is about$60,000 a month. I have a credit line with Sherwin
Williams for new construction. I do a little bit of business with Porter—I have
a small credit line with them.
Vice Chairman Lykos:
Q. I am not comfortable that you have a real good handle on the best way to
separate these businesses. I am always apprehensive when someone wants to
qualify a Second Entity for basically the same kind of business. To me, it just
creates future opportunity for grey areas in accounting and financial
management. If you have a real plan for how you are going to move forward
with the companies, you might want to talk to a business consultant or someone
who can direct you for the right entities for a succession plan. I am
uncomfortable with the potential pitfalls of moving forward with your current
plan. So, I would be voting against your qualifying of a Second Entity under
the current presentation.
Chairman White stated he may be similarly inclined but was willing to consider
the idea that—it would be conditioned upon the first entity, at some juncture, going
out of existence. So that you have a transition plan.
He continued: "The concern that this Board general has about Second Entities is
that it gives the impression that there's double the work where you're trying to do
half as much. That's the part that seems to be unsettling. I know you have
something that you envision as a`business plan.' There is no question about your
ability in terms of the professionalism in the work product. It's the idea of being
spread too thin in two entities that has generally been a concern for the Board."
Barry Helff: I saw it the other way. But I can understand based on your
comments.
Chairman White: It comes down to the idea of trying to be, in a sense, in two
places at the same time.
Barry Helff: So what you're suggesting is I should close down one and get my
structure the way I need it to be?
Chairman White: I am not trying to provide counsel. Just to be of service in how
the Board addresses the specific application and what we do with it.
Terry Jerulle stated he agreed. The idea of the Applicant's clients dealing with
two companies having the same name would be very confusing and could lead to
potential problems on both sides.
5
September 17,2014
Vice Chairman Lykos referenced Page 4 the application(See "5-A") The answer
was: "Need to start a new division to separate out new construction from re-
paints."
He suggested: The Applicant could act as the President of one entity with two
divisions—one that did repaints and one that did new construction. He could hire a
manager for each division. Over time, the Applicant would be able to work his
way out of the daily activities of each division. The Applicant would have two
people that he trusted to run each division. It's one entity. The Applicant would be
able to manage one business and he could rely on two qualified individuals to run
each division. It would not be necessary to create two separate businesses.
Barry Helff asked how he could bring partners in since he was so "entwined" in
the business.
Mr. Lykos: If you are so entwined in one business, how are you going to have
two?
Barry Helff: I am talking about how I have financially backed and personally
guaranteed everything for Statewide Painting and Pressure Cleaning, Inc.
Chairman White suggested having the managers sign employment agreements
where each would be given shares of the company. He stated there are people who
can provide counsel for business plans. There are ways to structure things to
achieve the Applicant's objectives.
He continued: "A Second Entity is a concern because,typically, it allows for
growth but there is the potential that the Applicant would end up with more on his
plate because he would have two plates, i.e.,two entities. That is the concern the
Board members have been expressing."
Kyle Lantz stated that while he is not a supporter of Second Entities, he could
understand the Applicant's position—wanting to have something to do in his
retirement(re-paint). He was not as concerned about the possibility of confusion
with both companies having similar names.
Terry Jerulle noted he deals with lien releases from banks and condo associations.
He stated it is difficult enough to obtain correct documents (names, spelling, etc.)
when dealing with one company, let alone two companies with similar names. He
further stated he had no problem with the Applicant's intentions ... merely with the
"vehicle"he was using to `get there.'
Barry Helff stated the reason why he wanted to keep the names similar was
because he had already worked fifteen years at 80 hours a week to build up his
business and credibility for his company's name. He has built his reputation. He
didn't want to start all over again building a reputation for the new company.
Richard Joslin suggested the Applicant bring his brother into the business while
he could watch him and train him while not yet breaking the company up into
another entity.
Vice Chairman Lykos noted the Applicant's desire to take advantage of his
"brand" for the Second Entity is exactly why Mr. Jerulle expressed concern
regarding confusion due to the names. The problem is the Applicant wants to
6
September 17,2014
leverage the name he already built for the Second Entity which is even more reason
to be concerned about confusion due to the similar names.
He continued: One of my concerns has been that you buy all the materials and
charge labor costs and material costs to one company which then is bankrupted
while the other company still exists and shows a profit because it has no debt.
That's the potential for something that could happen. Even though the Applicant
may have the purest of intentions, the Board must consider the possible outcomes
which can occur when a name is leveraged for two separate businesses.
Chairman White noted the other issues are the mechanisms of control, management,
and eventual ownership. It still seems apparent that the Applicant could accomplish
those things under one entity and achieve the same objectives without the potential
risks.
Mr. Helff stated he wanted to start out clean with his goal of setting himself up for
retirement while keeping the business afloat and staying involved in the business.
In this industry, your business is you.
Terry Jerulle stated the Board's purpose was not to give advice. He suggested
contacting an attorney who could help him establish an LLC to buy the current
company. Then the LLC could be divided up into how every many parts or
divisions the Applicant wanted. He could give shares of stock in the LLC to
whomever but it would still be only one company. There are other ways to do it.
Barry Helff agreed, stating this was the venue he chose to use.
Chairman White stated the application evidenced that Mr. Helff was doing
business with quality product. The Applicant has a successful operation and the
Board is not trying to dissuade him from continuing to operate successfully. The
Board is trying to do is diminish the probability in the future that it would not be
successful.
Mr. Helff expressed his opinion,which differed from the Board's—he thought it
would be a way to start clean and set the future.
Mr. Jerulle explained the LLC does not need to be "qualified"because the LLC
can purchase the assets.
Chairman White stated the Applicant could establish any number of ways that the
managing members or managers of the LLC can be a partner in the corporation.
Chairman White stated the Applicant could withdraw his application or the Board
could put the matter to a vote.
Richard Joslin moved to deny Barry Helff s application to qualify a Second
Entity. Terry Jerulle offered a Second in support of the motion. Motion carried,
6— "Yes"/2— "No." Michael Boyd and Kyle Lantz were opposed.
C. Todd Fabry—Request for Waiver of Examination
(d/b/a "Florida Custom Carpentry,LLC")
Todd Fabry stated he was starting a new business and wanted to reinstate his
license. He owned a large finish carpentry business during the early 2000s which
7
September 17,2014
was sold when he moved out of state. He has returned to Florida and wants to
open a new business. He further stated the business was sold in 2006. He returned
to the area approximately six months earlier.
Richard Joslin:
Q. When was the last time your license was active?
A. Active for Florida would have been 2006. I have been a Contractor since
moving out of state.
Chairman White requested the Applicant explain the certifications that were noted
in his application.
A. I was Lead Certified. I attended a 40-hour class which was a Supervisor's
course for Lead Abatement Certification. Wisconsin is a bit different—you
don't need a County license to work as a Contractor ... you must obtain a State
license. I didn't continue doing lead work due to insurance issues.
Q. What other type of work were you doing?
A. Finish carpentry. Just before we moved, I worked rehabbing a 200-unit
apartment building—we did the interior trim and a lot of the finish carpentry.
Prior to that,there was a big HUD project in Green Bay, WI. We did all the
cabinetry installs and interior doors for that project. It was more of a
commercial setting.
Q. In what other local jurisdictions are you licensed?
A. I am licensed in Lee County and Sanibel Island. I just received my Lee County
license about two weeks ago.
Terry Jerulle asked the Applicant why he did not wish to take the examination.
A. There's no "reason"—I took the test before and it goes with the person.
Richard Joslin questioned the Application concerning the Lee County license and
the September 30th expiration date.
A. Lee County's license renewal period begins the end of the month. I have paid
the fee and the renewal is in process.
Michael Ossorio:
• The Applicant is applying for a Cabinet/Millwork license. Only the
Business Procedures test is required—no Trades exam.
• He initially obtained his license in 2000 but did not renew in 2006.
• The County has no objection to granting his request for a Waiver.
Vice Chairman Lykos requested the Applicant to state, `for the record," whether
or not he had been active in his Trade since 2006.
A. I have been busy out of state (Wisconsin). When we moved to Wisconsin, one
of my old customers called me and asked me to work for him in Florida as an
employee. In order to do the windows and doors, I became PGT Certified. I
have been actively involved in construction since we left Florida but not
necessarily the entire time as a Subcontractor. I have been an employee for
people.
8
September 17,2014
Todd Fabry confirmed he had applied for a license to install millwork and
cabinetry which was the license that he held previously. He stated he was a Finish
Carpenter (his Trade) who installs millwork.
Michael Ossorio stated the title of the license differs from Lee ("Finish Carpentry
Contractor") and Collier Counties (Carpentry/Millwork License) but the defined
Scope of Work is the same.
Kyle Lantz moved to approve Todd Fabry's Application to Waive Testing
Requirements. Gary McNally offered a Second in support of the motion.
Carried unanimously, 8—0.
D. Marius Pughiuc—Review of Credit Report
Marius Pughiuc stated he was appearing before the Board to transfer his license
from his old company (MCM Tile and Marble, Inc.)to his new company
(Advanced Flooring of SW FL, Inc.).
Michael Ossorio:
• Mr. Pughiuc has been a licensed Tile and Marble Contractor for several
years.
• He closed his business and in order to open a new business,he is required to
go through the entire review process.
• There are some issues on his business credit—there is some debt on the old
company that has a bearing on how he pays his bills, suppliers, and
insurance.
Marius Pughiuc:
• He had been with Ascendant Commercial Insurance for the past seven
years.
• The last audit that was conducted was incorrect—not everything in the
company was deducted. He was overcharged.
• He is in the process of appealing the incorrect audit results. The appeal was
filed on March 25,2014.
When asked why he was closing one company and opening another,Mr. Pughiuc
replied he wants to keep working but can't because the erroneously filed audit
placed his debts into collection. He cannot renew his Workers' Compensation
Insurance under his old company. He stated he had no choice and until the issue
has been resolved, he can only work through a new company.
He stated he has no intention of filing for bankruptcy. He produced copies of the
documents that he sent to the debt collection company explaining the situation.
Vice Chairman Lykos: If your audit stated that you weren't paying the correct
amount, closing one company and starting another will not fix the problem.
9
September 17,2014
Marius Pughiuc: I have been with this company (Ascendant Commercial
Insurance) for almost seven years and I never had a problem until this last audit. I
have always paid my debts. I have no other debt except for that company.
Vice Chairman Lykos: I understand, but the Board was not given any of the
background information on the Workers' Comp audit and we do not know what the
details are ... what I am saying is if there is a problem with your Workers' Comp
audit—if the State says that you didn't pay the right amount or whatever the issue
is—without having that information, I am not comfortable saying it is "okay" for
you to close one company that had Workers' Comp problems which created credit
problems so that you can start another one. You haven't resolved the Workers'
Comp issue. You just want to close the company to start another one.
He continued: If you put employees or property owners at risk because you didn't
know how to manage your Workers' Comp policy, why would I let you go start
another company?
Marius Pughiuc: I could have done this before things went into collection—the
minute I got the audit I could have shut it down and opened a new company. I was
trying to work with Ascendant. But I would not pay them because they were
wrong. I am waiting for them to come back to me and admit they did wrong.
Vice Chairman Lykos: Because we were not given the details of the audit, all we
have it your statement that says because the audit said I owed a lot more money and
it was wrong and I didn't pay it, they put me into collection and now I can't operate
my business. If you can't prove to me that the audit was wrong,then that means
you were wrong. I asked Mr. Ossorio if he had the details of the Workers' Comp
audit and he did not.
He continued: What I have to decide right now whether or not to obtain your
information and read through it and listen to your explanation or if I should
recommend to the Chair that the Board handles this some other way. Right now,
without having had that information, I am not inclined to let you close one
company because of the Workers' Comp problem and go start a new one.
Marius Pughiuc: I understand. The amount was not that big ... about$6,000 ...
it was not because I could not pay ... I did not feel comfortable to give $3,000 or
$4,000 to somebody who doesn't deserve it. I am doing business over $500,000 a
year and paying all my debts. I don't have any other debts. I definitely don't want
to close MCM Tile & Marble because I built my name on that business.
Q. Why not just pay the $3,000 or $4,000 and go on with your business?
A. It is like giving somebody a gift for nothing. I prefer to go through the right
way, Because I worked hard for that money, I don't think somebody should
take it.
Terry Jerulle stated the Board makes decisions based upon the information that is
provided to it. He further stated he did not feel comfortable giving the Applicant a
license when there is an outstanding issue. He continued he did not know what the
outstanding issue was because the Applicant did not provide the information either
to the County or to the Board.
10
September 17,2014
Chairman White stated the Applicant's personal credit report showed a FICO
score of 630. It's close to the State's threshold but because it doesn't meet the
threshold, the Board is reviewing the personal credit report to determine why the
amount of debt the Applicant has is one that he had not paid.
The Chairman referenced Page 3 of the application, specifically the answer to
Question#8: "Foreclosures; 2 loans each foreclosure; divorce"
Chairman White asked Mr. Pughiuc to explain his answer to Question#8 and to
provide details.
Marius Pughiuc: In the divorce,my wife took everything that I built. All my
work for the last ten years, she took it away.
Q. The loans were in your name?
A. Yes.
Q. In your name, alone?
A. Yes.
Chairman White: That is the information we were looking for—you got the debts
and she got the "assets."
Terry Jerulle:
Q. Are you working with an attorney on the audit?
A. No, I have my accountant working with me on this.
Q. An outside accountant or one who works for your company?
A. An accountant who works for me company. She did all the papers.
Q. If you had paid in March, you could still appeal --- correct? If you were right,
they would refund or credit that amount back to you.
A. But they didn't want to. The minute I sent this packet to Ascendant Commercial
Insurance, my account went into collection. Now I am dealing with the collection
agency and trying to fix it. They said they will work with me and try to help me
out.
Q. But if you had paid the amount and then sent the packet in to appeal it.
Vice Chairman Lykos: You pay the debt and then you appeal it. What you did was
to appeal it without paying which is why it was placed into Collection.
Chairman White: Your point about `doing the right thing' —you could have
achieved without putting yourself in the position in which you are exposed today.
He continued: There are a couple of different ways that we could go forward with
this. What we have is a request to approve a license based upon our review of the
credit report. In most instances we have asked for a demonstration, if a probationary
period of licensure is given, for improvement in the credit report. If not, the license is
either suspended or revoked.
He asked the Applicant if he knew how long the appeals process might last.
A. I have no idea. It all depends on them and how soon they will get back to me.
Richard Joslin stated since the Workers Compensation issue was still "out there,"
he, also, was not comfortable considering granting a new license.
11
September 17,2014
When asked about the status of MCM Tile & Marble, Inc. the Applicant stated it
was"closed down"—he dissolved the company.
Marius Pughiuc stated the unresolved Workers' Comp issue was one of the
reasons why he dissolved the company. The other was because he started the
company with his first wife. The MCM stood for"Marius/Claudia/Mario" (his
son) and after the terrible divorce he just wanted to start fresh.
Chairman White stated if there are not sufficient documents or facts in the record,
and a motion is made and the basis for not approving the motion is because of that,
then it is up to the Applicant to come back if he chooses to and provide the
additional information.
Kyle Lantz stated that for him to be comfortable approving a new entity, if the
Applicant were to put the money that he is disputing in an escrow account until the
issue is resolved, he would then have no problem approving the new company.
Chairman White noted the Board may have the authority to require that as a
condition of granting a probationary license ... although the Board has not done
anything like that in the past. He asked the Board's attorney for his opinion.
Attorney James Morey, Attorney for the Board, stated the Board could impose
probation with reasonable restrictions on continuing a business. With respect to the
credit review, the Board has been creative—asked people to come back with a
business plan, asked Applicants to pay specific debts. He stated the Board has the
ability to impose reasonable conditions especially if they were agreed upon by the
parties, which would make it appropriate.
Vice Chairman Lykos stated since the Board had no idea what the problem was
with the Workers' Comp, he still was not comfortable approving a new license
when the Applicant could be wrong in the Workers' Comp audit.
Chairman White: The impact of being wrong is the financial consequence that
would be escrowed. Hopefully the lesson would then have been learned by both
the business operator and the accountant.
He continued: He expected the Workers' Compensation Board to keep a fairly
close eye on the Applicant in the future. There is not a question about quality of
work or of harm to the consumers. The question before the Board is, fundamentally,
a credit report issue. Looking to be solution-oriented because I do believe it sounds
like there is a dispute about the amount of premiums that were rightfully paid, the
business was operating appropriately. I do have a concern that there was adequate
scope to compensation insurance for the workers ... the employees ... so if someone
was injured on the job,they wouldn't be harmed. But that's not what, technically, is
before the Board. What we are being asked to do is look at the credit report and see
where we go.
Marius Pughiuc stated he did not have any employees. He is the only one doing the
work but he may hire a helper.
Richard Joslin questioned Mr. Pughius about his ability to obtain a Workers' Comp
policy—he had stated previously that he could not obtain one.
12
September 17,2014
Mr. Pughiuc replied he was unable to obtain coverage under his old company but
confirmed there was a policy in place under the new company. He further stated he
wanted to transfer his license from MCM to the new company.
Richard Joslin asked if he could consider placing the amount of money in dispute to
Workers' Compensation into an escrow account and proceed with his business under a
probationary period.
A. Definitely, I can definitely talk to them to see if they will agree to that.
Chairman White explained the Board would only approve a license if Mr. Pughiuc
agreed to place a sum of money into an escrow account and demonstrate to the
Licensing Supervisor that there is an escrow agreement that assures the funds will be
held until there is a determination of your Workers' Compensation case. If it turns
out in your favor, the money will come back to you. You would come back to us
after that point in time and we would consider moving from a probationary license
to a permanent license.
Marius Pughiuc: Definitely.
Chairman White continued: If it goes the other way, you would pay the money
from the escrow account and you would still come back to us and we would evaluate
whether there was a reason to go forward with a permanent license.
Marius Pughiuc: I understand. Yes, I will do that.
Chairman White: You would be willing to do that as a condition of a probationary
license?
Marius Pughiuc: Yes, sir.
(Robert Meister arrived at 9:54 AM; quorum was increased to nine voting members.)
Chairman White asked Mr. Morey and Mr. Knoll if the fundamental concept could
be implemented in a fairly straight-forward fashion. He stated he was aware that the
County has, in the past, requested escrow agreements or other forms of surety to be
provided concerning construction projects. He hoped the County would be able to
require a transfer of the funds in the event the appeal was denied. He suggested timing
the length of the probationary license to the outcome of the appeal.
Michael Ossorio recommended a probationary period of no longer than six months.
He suggested the Applicant and his attorney could place the funds in an escrow
account which would be satisfactory.
It was noted the State of Florida was not involved in the dispute. The Applicant had
paid his Workers' Compensation premiums as required. The dispute resulted from an
audit conducted by the insurance company.
Chairman White asked Mr. Pughiuc what he could do to encourage the insurance
company to resolve the issue within the next three months.
Marius Pughiuc stated he will continue to call the company and continue to
pressure them as well as have his accountant do the same.
13
September 17,2014
Vice Chairman Lykos suggested that the Applicant retain the services of an
attorney to establish the escrow account and to intercede with the insurance
company.
Kyle Lantz moved to approve issuing a probationary license to Marius Pughiuc to
become effective the date that all fees are paid to the County and the sum of
$6,825 is deposited into an escrow account with proof of same provided to the
Contractors'Licensing Supervisor. The probationary license will be effective for
a period of six months during which time the dispute with the insurance company
must be settled. At the expiration of the probationary period,Mr. Pughiuc is to
appear before the Board and produce an updated credit report. Chairman White
offered a Second in support of the motion.
Richard Joslin asked Mr. Pughiuc if the audit that was conducted by the insurance
company was based on his payroll and the response was, "Yes."
Mr. Joslin noted the issue may be because of payroll discrepancies.
Mr. Pughius stated the insurance company did not take into consideration the
exempt employees.
Chairman White called for a vote on the motion.
Motion carried, 5— "Yes"/4— "No."
A brief discussion ensued concerning the options available to Mr. Pughius, i.e.,he
could pay the insurance company and return the following month to re-apply for a
permanent license.
E. (Deleted—per Amended Agenda)
BREAK: 10:20 AM
RECONVENED: 10:30 AM
F. George Pickhardt—Contesting Citations
(d/b/a "Arrow Environmental Services, LLC")
Citation: #08920 ("Unlicensed Landscape Advertising")
Date Issued: August 1, 2014
Fine: $1,000.00
Description of Violation:
Engage in the business or act in the capacity of a Contractor, or advertise self or
business organization as available to engage in the business of or act in the
capacity of a Contractor, without being duly registered or certified.
and
Citation: #08921 ("Unlicensed Irrigation Advertising")
Date Issued: August 1, 2014
14
September 17,2014
Fine: $1,000.00
Description of Violation:
Engage in the business or act in the capacity of a Contractor, or advertise self or
business organization as available to engage in the business of or act in the
capacity of a Contractor, without being duly registered or certified.
George Pickhardt stated:
• He is Chairman of the Board of Arrow Environmental Services, LLC.
• We received Citations for advertising irrigation services and landscape
services
• He has been in business in Florida for approximately 60 years (circa: 1958).
• The company is mainly a pest control/lawn care/fertilization/insect control/
weed control.
• In some counties,we do provide irrigation services.
• We leave plastic bags for our customers containing our invoices. The bag
lists the services that we provide along with our phone number.
• We do not provide any irrigation services in Collier County. If we are
called for irrigation, we refer the customer to either Avante-Yarde, Inc. or
Scotland Yard. They are not used as subcontractors but are furnished the
lead to pursue.
• He is a Registered and licensed Irrigation Contractor in Sarasota County
where he resides. He is not licensed in Collier County.
• He noted some counties do not require licenses.
• We did not intend any harm and we not aware that we were violating an
Ordinance in Collier County.
• We have taken steps to change our message. He is concerned that there
may be other plastic bags in the area that do not reflect the revised message.
• It was never our intent to falsely advertise our company.
He requested an opportunity to "get our ducks in a row" in Collier County to
prevent any future violations.
He stated his company employs a couple of State-licensed Contractors who are in
the process of completing the business procedures exam in order to qualify to
work in Collier County.
Chairman White stated he understood Mr. Pickhardt's position regarding
irrigation services and requested an explanation concerning "landscape design"
services.
George Pickhardt:
• We do not provide any landscaping services in Collier County.
• In other counties,the company provides landscape services through
subcontractors.
• Unfortunately,the advertising was not county-specific and we are in the
process of correcting that error.
15
September 17,2014
• We will revise our website first, and then not use certain pieces of
advertising in Collier County that we might use in other counties.
• In Collier County, we strictly provide pest control/lawn care/termite
control—for those kinds of things, we are state-certified pest control
operators.
When asked about landscaping services provided in Collier County, Mr.
Pickhardt again reiterated the company does not provide any landscaping or
irrigation services to residents of Collier County. Any calls received by his
company are forwarded to Avante-Yarde, Inc. His company is not involved in a
subcontractor relationship with Avante-Yarde and only provides leads to them to
pursue.
Rob Ganguli,Licensing Compliance Officer, stated:
• He referenced Exhibits E-6 and E-7 which evidenced the internet
violations. The advertising outlines irrigation and landscaping services
offered in Collier County.
• Exhibit E-5 is the door-hanger advertising.
Mr. Pickhardt acknowledged the website was in the process of being revised
and he stated the door-hangers are no longer being distributed in Collier County.
Vice Chairman Lykos noted the Board members, during their deliberation, will
take into consideration any efforts made to mitigate the cause of the violation.
Mr. Ganguli stated he checked the website prior to the hearing at approximately
8:30 AM and the language has not been revised.
Chairman White explained the Board's options:
• To uphold the Citations as issued and require payment of the appropriate
fine(s);
• To dismiss the Citations—but in order to do that, an Applicant would
have had to abate the violation(s);
• To enhance the penalty.
Kyle Lantz:
Q. Have you applied to Collier County for a license?
A. As I understand it,there is a State-certified Irrigation Contractor's license and
there's also a State business license requirement. We have yet to obtain the
business portion. On the pest control side, we are governed on the State level.
Michael Ossorio noted that within the past six months, the State of Florida has
created a State-certified Irrigation Contractor's license. He stated if a contractor
is State-certified, he can work anywhere in the State. He explained most counties
require an irrigation license—either at the State level or the county level. An
irrigation contractor must take two exams: the irrigation test, and the business
procedures test. If you are licensed in one county, you can apply to another for
16
September 17,2014
a reciprocating license which Collier County grants on a regular basis.
He further stated the restrictions in Sarasota County are a bit lax and do not meet
the requirements of other jurisdictions.
Mr. Pickhardt confirmed that his employees have passed the trades test portion
of the State exam, but have not yet taken the Business Procedures test to obtain
the State-certified Irrigation Contractor's license.
Michael Ossorio further stated there have been issues with testing in Sarasota
County. Lee, Charlotte, and Broward County will not reciprocate with Sarasota
County because it doesn't meet the necessary requirements by the Code.
Kyle Lantz asked the County why the Respondent had received two Citations
instead of one.
Michael Ossorio stated if an Investigator witnesses violations that include
electrical,plumbing, etc., Citations will be issues for each violation. But a
contract is involved,the Citation is issued only for unlicensed contracting
because there is the ability to subcontract. It's "Division 1"versus a"Specialty"
license. The caller complained about the advertising. The advertising did not fall
under"Division 1." He stated if the Respondent had been in compliance prior to
the hearing,the amounts would be reduced.
Chairman White stated one of the reasons why the Ordinance was revised was to
encourage Contractors to abate the violation; obtain the lower amount of a penalty
(fine)by coming into compliance with license.
Mr. Pickhardt stated he understood about the fine but was more concerned about
his company's reputation in Collier County. He did not want the company to be
negatively perceived in the future.
Vice Chairman Lykos noted the Respondent made a conscious decision to
operate his company in several different jurisdictions. He stated the responsible
thing to do, as a license holder, would have been to research/understand the
requirements, laws, and ordinances of each jurisdiction before attempting to work
in that jurisdiction. The Respondent should have known what the laws were in
advance since each County is different. The responsibility is on the license
holder.
He further explained: The Ordinance has opportunities built into it to allow a
Contractor to abate a violation prior to appearing before the Board and the fine
would have been reduced. Mr. Pickhardt did not do that.
Chairman White stated Mr. Pickhardt did not apply for a license in Collier
County nor did he change the language on the website. Those options could have
allowed the Board to dismiss the Citations.
Vice Chairman Lykos moved to approve upholding the two Citations as issued.
Terry Jerulle offered a Second in support of the motion. Motion carried,
8— "Yes"/1— "No." Kyle Lantz was opposed.
It was noted Mr. Pickhardt had three days to file applications in Collier County.
17
September 17,2014
VII. OLD BUSINESS:
A. Osvaldo E. Gonzalez Guiterrez—Review of Credit Report(s)
(d/b/a "Calimete Premium Quality,Inc.)
The Applicant had previously appeared before the Board on May 21, 2014 and on
August 20, 2014.
Osvaldo Gonzalez was present and assisted by an interpreter.
Chairman White noted that the business plan submitted was excellent. He stated
the question that had been under discussion was about his credit. He asked the
Respondent to explain what was done with the creditor who was owed a large
amount of money.
A. Mr. Guiterrez called the company and arranged for a payment schedule.
Q. Is that part of the business plan?
A. Yes.
Richard Joslin agreed that Mr. Guiterrez met the criteria that the Board had asked
of him.
Mr. Guiterrez was congratulated by the Board for doing an such a good job.
Vice Chairman Lykos moved to approve terminating the probation license and
granting a permanent license to Osvaldo E. Gonzalez Guiterrez. Richard Joslin
offered a second in support of the motion. Carried unanimously, 9—0.
B. Form 8-B: Memorandum of Voting Conflict
Attorney Morey provided background information:
• During the August meeting, two Board members abstained from voting
based on the fact that their relationships to the Respondents or the matter at
hand might inure to a financial gain/loss for either the Board member or a
member of his family.
• Disclosures were made by Mr. Lykos and Mr. Meister.
• Both members abstained from voting on August 20, 2014.
The following was read into the record by each individual:
(1) Disclosure of Local Officer's Interest: Thomas X. Lykos
I, Thomas X. Lykos,hereby disclose that on August 20, 2014, a measure
came before the Contractor's Licensing Board which inured to my special
private gain or loss: My company had in the past completed a project originally
undertaken by the Respondent and that project resulted in financial gain to my
company and may result in future gain as well.
18
September 17,2014
(2) Disclosure of Local Officer's Interest: Robert Meister
I, Robert Meister, hereby disclose that on August 20, 2014, a measure came
before the Contractor's Licensing Board which inured to the special private gain
or loss of my relative: The Respondent is married to my sister and, as such,
the vote may have inured to the financial loss of my sister.
VIII. PUBLIC HEARINGS:
(None)
IX. REPORTS:
• Connie Thomas who had been with the Contractors' Licensing Office
for several years left recently.
• Jason Bidwell, from the Records Department, has been hired as the
Administrative Assistant.
X. NEXT MEETING DATE: Wednesday, October 15, 2014
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 11:30 AM.
t LLIER COUNTY CONTRACTORS
N i G BOARD
PATRIC HITE, Chairman
The Minutes were approved by the Board/Committee Chair on 0— E 1 , 2014,
"as submitted" ( 1 OR "as amended" (Y1.
19