2023A-02455-CHC-ROC Notice of Hearing and Packet MAILED 2023-02455.pdf

2023A-02455-CHC-ROC · Registrar of Contractors · 2024-09-24

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arthur Joseph Baray Jr , Case No. 2023-02455 COMPLAINANT, Docket No. 2023A-02455-CHC-ROC v. NOTICE OF HEARING ON 180 Transformations LLC CONTESTED CASE License No. ROC 307799,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D). HEARING INFORMATION The hearing is set for: August 24, 2023 1:00 PM Jenna Clark Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction

contractors is a proper state function, and has vested authority in the Registrar of Contractors

to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq.

All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

Chapter 6, Article 10. A.R.S. § 32-1156.

The statutes and rules governing the hearing can be found at: Arizona Revised

Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122.

PARTICULAR ARIZONA STATUTES AND RULES INVOLVED The statutes and rules the Respondent is alleged to have violated are cited in the

complaint and citation, which were served on the Respondent on June 27, 2023.

SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED The complaint and citation allege that the Respondent committed the following act(s):

Charge: 1 A.R.S. § 32-1154(A)(3)-R4—9-108(a) Charge: 2 A.R.S. § 32-1154(A)(12) – A.R.S. § 32- 1158 Charge: 3 A.R.S. § 32-1154(A)(22)

THE PARTIES TO THE ADMINISTRATIVE HEARING Because Respondent is a licensee and is charged with an act(s) or omission(s) that is cause for the suspension or revocation of a license, Respondent is a party to this case and will be a party to the hearing. Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will be a party to the hearing.

Respondent and Complainant, as the parties to the hearing, will present evidence and argument to the administrative law judge. The Registrar’s assigned investigator will appear as a witness at the hearing. RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32- 1156(B). CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of any change of address within five (5) days of the change. A.R.S. § 41-1092.04. HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE

The Registrar’s investigators, employees, and attorneys will appear at the hearing via

video conference or telephone unless requested by a party to appear in-person. Requests for

the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with

the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days

prior to the hearing date.

HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses

certain documents to the parties and the Office of Administrative Hearings. These documents are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit

additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below.

SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS

The parties to the hearing must be prepared to present evidence in support of their

case. If a party wants to obtain testimony from a witness or documents not in the party’s

possession, the party must prepare and file a written subpoena for the Administrative Law

Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a

subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com.

The party seeking a subpoena must serve notice on all the parties to the hearing, and on the

Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a

disclosure statement on all other parties, and file it with the Office of Administrative Hearings.

A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the

party will use at the hearing. A party’s failure to timely disclose any witness or exhibit,

without good cause, may result in the administrative law judge excluding those witnesses or

exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is

available on the Registrar’s website at https://roc.az.gov/content/prehearing-disclosure-

statement.

CHANGING THE HEARING DATE The date of the hearing may only be advanced or delayed on the agreement of the parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may be changed by filing a written agreement of the parties to change the date of the hearing. The written agreement must be filed with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The

assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties. The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION

In any case which is resolved or settled by the parties, or which is withdrawn by the

Complainant without objection from Respondent after the Notice of Hearing is issued, the

parties must notify the Office of Administrative Hearings of the resolution or settlement. Any

such cases will be listed on the Registrar’s website and its records under the category: “Closed

Complaints – Resolved/Settled/Withdrawn.”

Dated July 7, 2023.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail July 7, 2023 to: Respondent(s) 180 Transformations LLC 5050 S Butts Rd Tucson, AZ 85757 Complainant(s) Arthur Joseph Baray Jr 7937 W Pima Farms Rd Tucson, AZ 85743

Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar

Case No. 2023-02455 /

Katie Hobbs, Governor Martin Quezada, Director

Hearing Packet FAQ What is the Hearing Packet?

The Hearing Packet is a packet of certain documents collected or issued by the Registrar over the course of its investigation.

Who gets the Hearing Packet?

The Hearing Packet is assembled and distributed to all parties and to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing.

What types of cases does the Registrar prepare a Hearing Packet for?

The Registrar prepares a Hearing Packet for Complainant-Handled Cases and No-Pay Cases. Note: If the Docket Number on the Notice of Hearing contains a “CHC” or “NPC”, your case is a Complainant-Handled Case or a No-Pay Case.

What is in the Hearing Packet?

The Hearing Packet contains essential case-specific documents and at a minimum will include the following documents:

● Original complaint;

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

● Citation; and ● Answer.

The Hearing Packet will also contain the following documents (if applicable):

● Jobsite inspection notices, notes, and photos; ● Written directives; and ● Compliance inspection notices, notes, and photos.

What if there are documents missing from the Hearing Packet?

If there is any evidence you submitted to the Registrar that are not included in the Hearing Packet it is your responsibility to introduce that evidence at the administrative hearing. Note: The administrative law judge assigned to your case does not have access to the entire Registrar record.

If there is additional evidence you submitted to the Registrar during the investigation that you also want to introduce as evidence during your hearing, it is your responsibility to:

● Properly disclose that evidence to the other party; and ● Introduce the evidence during your hearing.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

How do I disclose evidence I intend to use at a Hearing?

You must properly disclose any and all documents and witnesses you intend to use at your hearing according to the Registrar’s Prehearing Disclosure Rules. See Arizona Administrative Code Section R4-9-118.

A sample prehearing disclosure form and instructions are provided to the parties by the Registrar.

How do I obtain documents I previously submitted to the Registrar?

If you previously submitted documents to the Registrar and need a copy of these documents, please contact the Registrar’s Legal Department or submit a public records request at https://roc.force.com/AZRoc/s/roc-public-request.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martín Quezada, Director

Complainant: Arthur Joseph Baray Jr 7937 W. Pima Farms Rd Tucson, AZ 85743

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

Respondent: 180 Transformations LLC DBA: 5050 S Butts Rd Tucson, AZ 85757

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

March 6, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-02455

Dear Complainant and Respondent:

A formal complaint has been filed with the Arizona Registrar of Contractors.

A jobsite inspection is scheduled for March 28, 2023 at 10:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the work complained of within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on this complaint. 2. The Registrar may also be precluded from taking further action on this complaint, if the work that is the subject of the complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area (ladder or manlift as appropriate). Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection. If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely, Arlo Houston Arlo Houston, Investigator #185 (520) 628-6895 [email redacted] 1700 W Washington St., Ste 105 Phoenix, Arizona 85007

CC:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

A Guide to Jobsite Inspections

Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license alleging poor workmanship, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

Jobsite Inspection Rights and Responsibilities Access to inspect: The property owner has complete control over who they allow on the property. However, if the Registrar’s investigator or the contractor cannot inspect the work, the Registrar will not move forward with a citation.

Cooperation: Arizona law enables injured parties to seek relief for damages through several paths. When dealing with a licensed contractor, the Registrar of Contractors’ administrative complaint process may serve as one of those possible paths. However, in order to use that path, the Registrar relies on the cooperation of all parties to a complaint.

Minimum workmanship: The Registrar investigates workmanship complaints for compliance with minimum workmanship and professional industry standards. The Registrar does not issue citations for work that meets these standards.

Scope: The scope of the Jobsite Inspection is limited to items listed in the complaint filed with the Registrar’s office. It is the complainant’s responsibility to point out the complaint item(s) and the Investigators role to review the item(s). If the complainant identifies additional workmanship items not listed in the original complaint, they must file an addendum to the complaint. The Registrar’s Investigator may identify additional administrative violations by the contractor (e.g. work performed out of scope of the license and failure to provide a contract that meets requirements set by Arizona law) at the time of the inspection.

The Role of the Investigator At the Jobsite Inspection, the Registrar’s investigator will: ● Only investigate the items listed on the complaint form filed with the Registrar. ● Will gather evidence to make an informed decision about the complaint items.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will determine whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Written Directives Access: In order to use the administrative process offered by the Registrar, a property owner must provide reasonable access to allow the contractor to fix their work as directed by the Registrar in a Written Directive. Complainants may not put any additional, unnecessary restrictions on the Respondent above and beyond the initial contract requirements agreed upon at the beginning of the project. Respondents are required to make repairs on items identified on any Written Directive, not otherwise restricted by local code or HOA limitations. Complainants must make access available to the Respondent to make the required repairs and failure to provide reasonable access may result in the Registrar dismissing the complaint.

Contractor obligations: The Written Directive will set a deadline for compliance. This is the period of time determined by the Investigator as necessary to complete the items listed in the Directive. ● The deadline for compliance assumes the contractor will promptly begin working on the items listed in the Directive. ● Do not wait. Both parties should communicate quickly to schedule the work.

Extensions: If good cause exists to extend this deadline, either party may submit a written request to the Investigator. The Registrar will review requests for extension and determine if the Directive should be extended.

Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.

Compliance Inspection: After the Written Directive expires, the Registrar’s Investigator will contact the complainant to determine if the contractor performed any corrective work. ● If the contractor did corrective work, the Investigator may schedule a Compliance Inspection to determine if the poor work is corrected. ● If the contractor did not perform any corrective work, the Registrar’s Investigator will not do a Compliance Inspection and will determine whether to issue a citation based on the administrative record.

Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

Complainant: Arthur Joseph Baray Jr 7937 W. Pima Farms Rd Tucson, AZ 85743

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

Respondent: 180 Transformations LLC DBA: 5050 S Butts Rd Tucson, AZ 85757

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

April 6, 2023

License No. ROC 307799

Re:Complaint No. 2023-02455

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on April 25, 2023.

RESTRICTIONS  You may not perform or hire other contractors to perform work that is outside the scope of your license.  If your license is currently suspended for administrative reasons1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

Submit an updated version of a contract template to the Registrar that complies with the provisions of A.R.S. § 32-1158

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

unable to observe for any conditions specified in allegation regarding the framing and the lath. However, I did observe for: -areas of excessive cracking in exterior stucco system Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Compliance Item: 3 - "FOUNDATION/CONCRETE - saw cuts on floor are not complete and damaged in some areas" Investigator’s Observation: Verified. Upon inspection at this JSI I observed for: -area(s) of incomplete saw cuts in concrete -area of damaged concrete along saw cut in bathroom Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Compliance Item: 1 - "FOUNDATION/CONCRETE PAD - finished colored concrete (no tile) final floor was to be sealed finished concrete. Concrete has multiple footprints on finished" Investigator’s Observation: Unverified. Upon inspection at this JSI I observed for: -complainant and respondent discussed footprints on concrete prior to complainant sealing floor -complainant accepted the surface by sealing the floor themselves Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

Compliance Item: 4 - "FOUNDATION/CONCRETE - areas around home are not sealed where ICF wall meets foundation. Water will enter when rains" Investigator’s Observation: Unverified. Upon inspection at this JSI I did not observe for this allegation as described and no evidence at the time of jobsite inspection provided by the complainant to support this allegation. Governing Rule: N/A

Compliance Item: 5 - "FOUNDATION/CONCRETE - chalk lines throughout home never properly removed on finished floor" Investigator’s Observation: Unverified. Upon inspection at this JSI I observed for: -complainant and respondent discussed chalk lines on concrete prior to complainant sealing floor -complainant accepted the surface by sealing the floor themselves Governing Rule: N/A

Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

Arlo Houston Arlo Houston, Investigator #185 (520) 628-6895 [email redacted] 1700 W Washington St., Ste 105 Phoenix, Arizona 85007

CC:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

Jobsite Inspection Notes

Case No.: 2023-02455 Investigator: Arlo Houston Inspection Date: March 28, 2023 Inspection Time: 10:00 AM

Complainant: Arthur Joseph Respondent: 180 Transformations Baray Jr LLC Not Present: Not Present:

Jobsite General Notes: Arrived at Complainant’s jobsite location at 10:00 AM. Pictures taken with Registrar of Contractors agency issued camera - Canon PowerShot ELPH180. Audio recorded with Registrar of Contractors agency issued digital audio recorder - Olympus Digital Voice Recorder DS-30. Complainant, Arthur Baray, present. Respondent, John Ybarra, present.

Complaint Item: 1 - "FOUNDATION/CONCRETE PAD - finished colored concrete (no tile) final floor was to be sealed finished concrete. Concrete has multiple footprints on finished" Investigator’s Observation: Unverified. Upon inspection at this JSI I observed for: -complainant and respondent discussed footprints on concrete prior to complainant sealing floor -complainant accepted the surface by sealing the floor themselves Reference JSI pic(s): 2 Governing Rule: N/A

Complaint Item: 2 - "INCORRECT LATH/STUCCO ISSUE - improper lath installed above the ICF block (peripit wall). Cracking, you can see framing/lath not correct installed"

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov RCC100 08/19

Investigator’s Observation: Verified. Upon inspection at this JSI I was unable to observe for any conditions specified in allegation regarding the framing and the lath. However, I did observe for: -areas of excessive cracking in exterior stucco system Reference JSI pic(s): 3 Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 3 - "FOUNDATION/CONCRETE - saw cuts on floor are not complete and damaged in some areas" Investigator’s Observation: Verified. Upon inspection at this JSI I observed for: -area(s) of incomplete saw cuts in concrete -area of damaged concrete along saw cut in bathroom Reference JSI pic(s): 4-5 Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 4 - "FOUNDATION/CONCRETE - areas around home are not sealed where ICF wall meets foundation. Water will enter when rains" Investigator’s Observation: Unverified. Upon inspection at this JSI I did not observe for this allegation as described and no evidence at the time of jobsite inspection provided by the complainant to support this allegation. Governing Rule: N/A

Complaint Item: 5 - "FOUNDATION/CONCRETE - chalk lines throughout home never properly removed on finished floor" Reference JSI pic(s): 6 Investigator’s Observation: Unverified. Upon inspection at this JSI I observed for:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov RCC100 08/19

-complainant and respondent discussed chalk lines on concrete prior to complainant sealing floor -complainant accepted the surface by sealing the floor themselves Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov RCC100 08/19

Complaint #2023-02455 P 1 JSI Date: 3/28/2023 at 10:00 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85743 Complaint #2023-02455 P 2 JSI Date: 3/28/2023 at 10:00 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85743

-footprints on colored concrete; -concrete sealed by homeowner Complaint #2023-02455 P 3 JSI Date: 3/28/2023 at 10:00 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85743

-area of excessive cracking in exterior stucco system Complaint #2023-02455 P 4 JSI Date: 3/28/2023 at 10:00 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85743

-area of incomplete saw cut Complaint #2023-02455 P 5 JSI Date: 3/28/2023 at 10:00 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85743

-area of damaged concrete along saw cut in bathroom Complaint #2023-02455 P 6 JSI Date: 3/28/2023 at 10:00 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85743

-chalk lines on colored concrete; -concrete sealed by homeowner Katie Hobbs, Governor Martín Quezada, Director

Complainant: Arthur Joseph Baray Jr 7937 W. Pima Farms Rd Tucson, AZ 85743

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

Respondent: 180 Transformations LLC DBA: 5050 S Butts Rd Tucson, AZ 85757

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

May 3, 2023

License No. ROC 307799

Re:Complaint No. 2023-02455

AMENDED WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

Submit an updated version of a contract template to the Registrar that complies with the provisions of A.R.S. § 32-1158

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F).

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

Compliance Item: 6 - "you can clearly see the the top edge of the ICF wall under the stucco, where it meets the parapet wall" Investigator’s Observation: Verified. Upon inspection at the addendum JSI I observed for: -visible transition in stucco system in junction/area of stucco where the parapet wall meets the underlying ICF block. Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

Arlo Houston Arlo Houston, Investigator #185 (520) 628-6895 [email redacted] 1700 W Washington St., Ste 105 Phoenix, Arizona 85007

CC:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C009 04/21 Katie Hobbs, Governor Martín Quezada, Director

Addendum Jobsite Inspection Notes

Case No.: 2023-02455 Investigator: Arlo Houston Inspection Date: April 21, 2023 Inspection Time: 1:00 PM

Complainant: Arthur Joseph Respondent: 180 Transformations Baray Jr LLC Not Present: Not Present:

Jobsite General Notes: Arrived at Complainant’s jobsite location at 1:00 PM. Pictures taken with Registrar of Contractors agency issued camera - Canon PowerShot ELPH180. Audio recorded with Registrar of Contractors agency issued digital audio recorder - Olympus Digital Voice Recorder DS-30. Complainant, Arthur Baray, present. Respondent, John Ybarra, present.

Complaint Item: 2 - "INCORRECT LATH/STUCCO ISSUE - improper lath installed above the ICF block (peripit wall). Cracking, you can see framing/lath not correct installed"

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

-complainant and respondent discussed chalk lines on concrete prior to complainant sealing floor -complainant accepted the surface by sealing the floor themselves Governing Rule: N/A

Complaint Item: 6 - "you can clearly see the the top edge of the ICF wall under the stucco, where it meets the parapet wall" Investigator’s Observation: Verified. Upon inspection at the addendum JSI I observed for: -visible transition in stucco system in junction/area of stucco where the parapet wall meets the underlying ICF block. Reference AJSI pic(s): 2-8 Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Katie Hobbs, Governor Martín Quezada, Director

Complainant: Arthur Joseph Baray Jr 7937 W Pima Farms Rd Tucson, AZ 85743

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov

C012 05/21 Katie Hobbs, Governor Martín Quezada, Director

Respondent: 180 Transformations LLC DBA: 5050 S Butts Rd Tucson, AZ 85757

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov

C012 05/21 Katie Hobbs, Governor Martín Quezada, Director June 6, 2023

Compliance Jobsite Inspection Notice Re: Complaint No. 2023-02455

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for June 20, 2023 at 9:30 AM to determine the current status of the items listed on the issued Directive.

The Complainant is required to be present for this inspection. The Respondent is encouraged to be present but is not required to attend.

Complainant: SAFE ACCESS IS REQUIRED TO ANY AREA TO BE INSPECTED.

Sincerely,

Arlo Houston Arlo Houston, Investigator #185 520 6286895 [email redacted] 1700 W Washington St., Ste 105 Phoenix, Arizona 85007

CC:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov

C012 05/21 Complainant: Arthur Joseph Baray Jr 7937 W Pima Farms Rd Tucson, AZ 85743

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Respondent: 180 Transformations LLC DBA: 5050 S Butts Rd Tucson, AZ 85757

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Case No.: 2023-02455 Investigator: Arlo Houston Inspection Date: June 20, 2023 Inspection Time: 9:30 AM

Compliance Jobsite General Notes: I arrived at the complainant’s residence at 9:30 am. Present was the Complainant and the Respondent was not present.

I advised the complainant that I was performing a Compliance Jobsite Inspection to verify the status of the items in question on the Written Directive.

Pictures taken with Registrar of Contractors agency issued camera - Canon PowerShot ELPH180. Audio recorded with Registrar of Contractors agency issued digital audio recorder - Olympus Digital Voice Recorder DS-30.

Compliance Findings: I proceeded to inspect the items on the Written Directive and I found the following:

Compliance Item: 2 - "INCORRECT LATH/STUCCO ISSUE - improper lath installed above the ICF block (peripit wall). Cracking, you can see framing/lath not correct installed" Investigator’s Observation: Work done for this item does not meet workmanship standards: work not complete for this item: stucco repair was performed but painting was not completed in areas of repair

Compliance Item: 3 - "FOUNDATION/CONCRETE - saw cuts on floor are not complete and damaged in some areas" Investigator’s Observation: -area(s) of incomplete saw cuts in concrete: complainant advised that this was completed -area of damaged concrete along saw cut in bathroom: no work done for this item at time of inspection but complainant advised work was scheduled to be completed for this item

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Compliance Item: 6 - "you can clearly see the the top edge of the ICF wall under the stucco, where it meets the parapet wall" Investigator’s Observation: Work done for this item does not meet workmanship standards: work not complete for this item: stucco repair was performed but painting was not completed in areas of repair

Note:

Please review the complaint items listed above. If any of the items have not been corrected at the time of the compliance inspection this complaint will be forwarded to the Registrar’s legal department and a citation may be issued.

If all items are corrected after receipt of this letter, please notify the Registrar’s legal department by sending a notice of compliance signed by the complainant to fax number (602) 364-0416 or by mail to: Arizona Registrar of Contractors, P.O. Box 18244, Phoenix, Arizona 85005-8244. Sincerely,

Arlo Houston Arlo Houston, Investigator #185 520 6286895 [email redacted] 1700 W Washington St., Ste 105 Phoenix, Arizona 85007

CC:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Complaint #2023-02455 P 1 JSI Date: 6/20/2023 at 9:30 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85753 Complaint #2023-02455 P 2 JSI Date: 6/20/2023 at 9:30 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85753 Complaint #2023-02455 P 3 JSI Date: 6/20/2023 at 9:30 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85753 Complaint #2023-02455 P 4 JSI Date: 6/20/2023 at 9:30 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85753 Complaint #2023-02455 P 5 JSI Date: 6/20/2023 at 9:30 AM JSI address: 7937 W. Pima Farms Rd, Tucson, AZ JSI PHOTOS 85753 Received 06/27/2023 ROC Legal

John Ybarra 5050 S. Butts Rd Tucson, AZ 85757 520-331-2064 [email redacted] ROC 307799

“Written Answer to Citation and Complaint”. Complaint # 2023-02455”

To Mr. Ulmer Please read this knowing that I have been trying my best to correct this situation to the best Of my abilities. My license is my livelihood and I would not put that is jeopardy for the world. I have been in this business for 24 years, and have had nothing but trouble on this case not over Trying to fix the situation, but because of the money behind it. I would like to explain my side of the situation and provide some documentation supporting it. First I would like to say that repairs were made to the stucco but paint had not been completed Due to letting the stucco cure for 3-4 weeks prior to painting. The stucco repairs were completed On 6-3-2023. Which would give us until 6-24-2023 thru 6-31-2023. On the day of the onsite (6-20-2023) Meeting, I called Mr. Houston, and notified him that the stucco was complete but painting had Not occurred yet. I also let him know on the recording that I could not make the meeting as I Had a family emergency in Tulsa Oklahoma. I reached out to him today, because I had not heard Back from him on the jobsite meeting. He stated that he wrote me a citation for the work not being Complete and I let him know that we just needed the curing time to paint. He stated that I was given Enough time from the start of the situation to have painted the walls. That however was not the case From the above timeline provided. I have reached out to Mr. Baray to schedule Monday the 3rd to Finish the areas, and have not received a response. Also stucco repairs were on the directive, but Never paint which I know is a technicality, but was not on the directive for items to be completed By that date of the meeting. I do want to finish the job if provide the opportunity.

This has been the theme of the situation. On 2-9-2023 I received a list of items that Mr. Baray Wanted corrected. One of the items is the stucco repair on the complaint. My representative called him And they agreed to meet on 2-15-2023 to discuss repairs. At that time Mr. Baray was having a wall built Around his home and they both agreed to wait a few weeks until the block was complete to do the repairs. We thought at that time that the situation was resolved. Shortly after that meeting Mr. Baray filed a Complaint. I received official notice of complaint of the 6th of march. At that time my representative Sent Mr. Baray a text stating, “why did he send a complaint if we already had a plan”. And he said,” I know you Will fix it but I had to include it with a concrete issue.” That is false as he never gave us the opportunity To fix the issue before going to the ROC. (See text thread of conversation). (Stucco 1 and 2)

After Compliance jobsite inspection we were notified by Mr. Houston to repair 2 stucco cracks. Those cracks were repaired. And Mr. Baray shortly after initiated an addendum jobsite inspection for the Lath and Stucco. At that time on the notice we were notified that we had the time before that meeting To address Mr. Baray’s other concerns. This notice was dated 4-14-2023. And per that notice - Received 06/27/2023 ROC Legal

Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the amended complaint items within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on the amended complaint items.

We tried several times to schedule the fix before the 2nd jobsite meeting but were told by Mr. Baray that he wanted to wait until the inspection again, before we were Allowed to fix the situation. Which goes against the above ARS code. As a result, Mr. Houston Said he would just extend the timeline instead of dismissing the case due to the A.R.S. 32-1155(D)(1).

We were finally allowed onsite to complete the stucco repair, but are still attempting to paint The repairs. I tried to fix this issue before it became an ROC issue, but this all stems from The following. See also attached written response to 1st Roc complaint.

1. Mr. Baray Is a loan officer and his loans dried up during the interest rate hike.

2. At that time, he was able to pull 20,000 from the final building draw behind my back, Without my signature and without my authorization. Pioneer title can verify this.

3. When this was discovered and I wouldn’t sign the paid in full documents from the bank, He started a retaliation champagne.

4. He asked for 10,000 from the foundation contractor for the issue of the foundation that was found not an issue by Mr. Houston. We tried to do a BCP with the roc and he turned It down and filed a complaint.

5. He has had one of his associates try to start a physical altercation, with the stucco repair Person at Home Depot. Mr. Houston was notified.

6. He says that I am under his thumb for the duration of the Roc warranty.

7. He has broken contract. See items 16.1 - 16.2 -16.3

a. 16.1 He had the opportunity to walk the job and give us a punch list of items. Instead a complaint was made even when we agreed to any repairs prior to him making a complaint.

b. 16.2 The owner occupied the property still owing 180 Transformations final Payment.

c. 16.3 And per article 16.3 if the owner is in violation of 16.2 Occupancy of the Project by the owner in violation of Article 16.2 shall constitute unconditional Acceptance of the project and a waiver of any defects or uncompleted work.

I have not been paid in full and Mr. Baray has been living at the property for almost a Year now, and I believe he is taking these actions so that he does not have to pay me The final payment on the project. Also because the 20,000 he was able to appropriate From the final loan he wanted me to as he said, “ Just eat it”.

If you have any questions, please feel free to contact me.

John Ybarra 180 Transformations LLC 520-331-2064 Received 06/27/2023 ROC Legal

I also apologize for such a lengthy story to this odd situation. Received 06/27/2023 ROC Legal

Gmail JOHN YBARRA <john@1 S0tucson.com>

Erhib,+ 4 Re: BARAY - 7937 W PIMA FARMS RD l message .i .] rn tt JOHN YBARM <[email redacted]> ' Thu, Feb 9. 2023 at 10:11 AM To: AJ B <[email redacted]>

Send pictures and locations for drywall repairs to foMard to contractor. Mark all locations with tape and the cou nt so no areas are missed.

Ac contractor will be contacting for time for service.

Garage door will be looked at next week. lwill need access. ( H" neJprhs. lo re1""s|).

On Thu, Feb 9, 2023 at 9:58 AM AJ B <[email redacted]> wrote: 02l09/2023

Attn: John Ybarra - lSoTransformations - ROC 307799

Barav Home - CONTRACTOR REPAIR ITEMS 7937 W Pima Farms Road Tucson, AZ 85743

List of current items to address/repair; We may add to list if needed as other issues may come up within our 2 year period.

The first 3 items on list if no response or remedy within 10 business days, we will file complaints directly with ROC due to negligence. l've spoken to AZ ROC representatives and after their input, these items appear to be valid under their requirements.

1. FOUNDATION PAD CONCRETE FINISH: (exposed colored concrete floors) a. uneven finish, footprints and markings due to sub contractor walking on slab while wet b. saw cuts in various spots were not properly completed c. blue chalk lines throughout home in various areas on pad not able to be removed 2. EXTERIOR STUCCO/LATH: incorrect lath size was used when finishing exterior above ICF wall. Stucco has uneven bump along full perimeter of home and workshop.

3. STUCCO BASE/EffERlOR WALL: numerous areas around home where ICF wall meets foundation pad are not sealed. When it rains. water enters home.

Additional items:

4. STUCCO: various cracks/settling around home, porches in need of sealing. Most likely more to come but there are quite a few at the present time to repair. Received 06/27/2023 ROC Legal 5. W ROOM WINDOW REPAIR/REPLACE: this item I knpw is scheduledtor 919123 6. WINDOWS: confirm all are able to propeily drain thlough seep holes, etc 7. Door improper sealed from garage entry into homei Wind noise/howl from bo$om sweep, Not properly sealed/installed at bottom

8. Drywall cracks/settling within home, varipus areas, 9. Heat pump: when heater shuts ofi approx. 5096 of time there is a loud squeal flom blower or Heat pump, not sure exactly but there is a loud noise thFt doesn't sound normal.

Will add to list as needed N BAMY Received 06/27/2023 ROC Legal I I JoHN YBARRA <john@l80tuc,son.com> f. l'l \ ', /\ r' i ,t L X h, b. :t L__Jlyt,,1.+ (.tr-.a Re: AZ ROC - Written Directive l message JOHN YBARRA <john@1 S0tucson.com> Wed, Apr 12,2023 at7:40 AM To: Arlo Houston <[email redacted]>

Good morning Mr. Houston,

I received the ROC directive and will take care of all items shortly. I also wanted to make you aware that an incident happened at home depot on 4-10-2023. one of the gentlemen who will be doing the stucco repairs' noticed Mr. Baray and Mr. Rocha. Mr' Rocha went out of his way to stand in the front of his walking path to stand there and stare him down' Wanting to cause a confrontation. I just want to make you aware of the situation, just in case there are any hostities on the site when we do the rePairs.

Thank you

John Ybarra 180 Transformations LLc 520-331-2064

On Thu, Apr 6, 2023 at 12:20 PM Ado Houston <[email redacted]> wrote: . Dear Complainant and ResPondent,

Attached is a Written Directive from the Arizona Reglshar of Contractors. Please direct all questions regarding lthis Directive to the undersigned Investigator.

Sincerely,

Arlo Houston Investigator #185 Arizona Registtar of Gontractors 1700 W. Washington St., Ste, 105 Phoenix, AZ 85007 520-628-6895 - Office 520-628-6588 - Fax

CONFIDENTIALITY NOTICE: This email message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or OistiiUutidn is prohibited. lf you are not the intended recipient, please contact the sender by reply email and desitroy all copies of the original message. Received 06/27/2023 ROC Legal

JOHN YBARRA <john@1 Sotucson'com>

L I t \r J .-l Lrh-*,* -r | -

-Acees-5 Re: AZ ROC - Addendum Jobsite Inspection Scheduled message

Thu, May 11, 2023 at 7:13 AM JOHN YBARRA <john@1 Eotucson.com> To: AJ Baray <[email redacted]>, Arlo Houston <arlo'houston@roc'az'gov>

AJ,

you have heard from us, and know we will be delivering the materials today to start the cosmetic float of the transition beween tt'" LCf parapet framing. Your statement of improper lath is incorrect as founded by the pima county inspection and "nOnrro Houston, wio found "no impropef iath installed on his two visits to your home. I was also told that you ov fv" "i"o will is up.. to us on procedure So, if noi tet us Oo tne repair unless you okay the procedure, which as stated by Mr. Houston Houston may be required. I will be in contact with him today' vou will not allow us to start the repair, another visit from Mr.

On Thu, May 11,2023 at6.54 AM AJ Baray <[email redacted]> wrote: John, i havent heard from You

need to have you send me your plan in writing for the fix attempt regarding the improper lath installed on parapet wall' I want something in writing regarding this

AJ BARAY -SENT FRoM MY iPHoNE

On Apr 14, 2023, at 1:07 PM, Arlo Houston <arlo.houston@roc'az'gov> wrote:

Dear Complalnant and Respondent:

An Addendum Jobsite Inspection has been scheduled - see atlached'

Sincerely,

Arlo Houston Investigator #185 Arizona Registrar of Contractors '1700 W. Washington St., Ste, 105 Phoenix, AZ 85007 520-628-6895 - Office 520-628-6588 - Fax Received 06/27/2023 ROC Legal

John Ybarra 5050 S. Butts Rd Tucson, AZ 85757 520-331-2064 [email redacted] Attention: Arlo Houston Complaint Number 2023-02455

Hello Mr. Houston, this letter is to help understand the situation with Mr. Baray. The Build was civil and friendly throughout until the final month or so when the interest rates changed. Mr. Baray is a loan officer and his loans dried up. Long story short he was somehow able to dig into the construction draws without my builder request or sign off and took 20,000 from the final draw. When I wouldn’t sign the bank documents stating I was paid in full he became irate and said I should eat the costs. He is basically using the ROC as a threat against me and has stated that, I am under his thumb for the next 1-1/2 years. The following documents and dates will layout his complaints and how we have tried to solve any issue. I will break them down into two parts: foundation and stucco.

Items 1,3,4,5 Foundation. Received 06/27/2023 ROC Legal

1. Foot prints never came up until the last few weeks of the build. There is one area that he pointed out on a jobsite meeting with Francisco’s honest concrete. The area is in the master water closet. They are sock prints from the day of pour to mark the saw cuts to be completed as soon as possible after the pour. On the visit (oct 5th -2022) the Baray’s met with FHC and I. FHC stated that we could grind the area and stain or paint the floor, but that it would not match exactly the panel next to it. Mr. Baray stated that he would have to think about those options. Before leaving I said to Mr. Baray, “ We are all here now, are you asking for some compensation”. He said he would have to think it over. Shortly after Baray approached me and said, We need a drive way apron, and some concrete slabs around the house. He said he figured it would be about 10,000 worth of work and that he would settle for that for the footprints. I told him that the footprints are not a structural issue and that was a bit much of an ask. He said do my job and ask him. When FHC was notified by me, FHC told me that he would rather go through a civil process with Mr. Baray. Mr. Baray was notified of his response.

On 2-9-2023 I received an email from Baray stating; concrete has an uneven finish, and marking due to subcontractor walking on slab when wet. Saw cuts not completed, and blue chalk lines on slab that were not able to be removed. By the way, the owner sealed the marks before allowing FHC to deal with the issue. Received 06/27/2023 ROC Legal

At that time FHC initiated a BCP with the ROC. FHC was notified that Mr. Baray refused the BCP and was filing a complaint against 180 Transformations. And now we will meet to look at the situation. (Please see texts from Baray and I (Document Text thread from AJ).

Item 2. Stucco

During the lath install, Baray was notified that the proper thickness of foam for the Lath was not available in a timely manner due to Covid supply issue. Baray stated, that the house needed to be completed as soon as possible due to rising interest rates. He need a permanent lock before they rose more. Before leaving the final on the house. Baray was told that any stucco item he wasn’t happy with we can take care of, just call. He said all was good and then 6 months later we received the email with the stucco included on items to address. At that time my representative set a time to meet onsite with Baray. Feb 9th was the notification. The meeting was on the 15th of Feb. Baray and my rep decided the repair should wait until Baray’s block wall work was complete. Shortly after a complaint was initiated by Baray. My rep contacted him and you can see the agreement and Baray stating that he knows we will take care of it, but he had to make a complaint anyway.

Since all this has happened Baray has refused us entry onto the property. We have tried numerous times to start the work and he say’s he wants to Received 06/27/2023 ROC Legal

wait of the ROC inspection. Per the ROC written directive Baray has not allowed us to fix any situation prior to the Complaint and even after the complaint.

Closing: Baray has filed a fraudulent complaint to the ROC based on informing us about a situation and not letting us try to correct the concern civilly. (Stucco) The concrete was an issue we tried to make work, but money is what Baray is after. Thus the BCP that was rejected. He still owes 3500.00 to this GC, and it is documented through the title company (By June 1 2023).

Per the contract Baray has broken the 3 following items and many more I will not mention at this time.

ARTICLE 16. ACCEPTANCE AND OCCUPANCY

16.1 Upon completion, the project shall be inspected by the Owner and the Contractor, and any repairs necessary to comply with the contract documents shall be made by the Contractor.

16.2 The Owner shall not occupy the property until final payment has been received by the Contractor and a Certificate of Occupancy has been obtained.

16.3 Occupancy of the project by the Owner in violation of Article 16.2, shall constitute unconditional acceptance of the project and a waiver of any defects or uncompleted work. Received 06/27/2023 ROC Legal

16.1 He will not allow repair and has initiated an ROC complaint. 16.2 He has occupied property without final payment. 16.3 See 16.2

I am also adding an email thread of the items he wanted to correct. As he has stated that he is going to come up with more items. My concern is that he has not let us in to do drywall repairs and other misc items, and that he will use it for another ROC Complaint. My goal is to make the client happy, but he has become very verbally

Abusive and extremely out of touch with trying to resolve any dispute. As a result I only communicate with him Via email. Onsite I would appreciate only conversing and answering your questions.

Thank you for your time,

John Ybarra

180 Transformations LLC Received 06/27/2023 ROC Legal Received 06/27/2023 ROC Legal Received 6/28/23, 8:03 AM State of Arizona Mail - Attn: Mr. Ulmer 06/27/2023 ROC Legal

Answers - AZROC <[email redacted]>

Attn: Mr. Ulmer message

JOHN YBARRA <[email redacted]> Tue, Jun 27, 2023 at 8:47 PM To: [email redacted]

Hello Mr. Ulmer,

Here is my response letter and other documentation.

Case #2023-02455

John Ybarra 180 Transformations LLC 520-331-2064 ROC 307799

attachments

Stucco 1.jpg 123K

Stucco 2.jpg 88K

written answer to citation and complaint.docx 39K original response.docx 41K Exhibit 1 access.PDF 73K Exhibit 2 confrontation.PDF 50K Exhibit 3 access to stuco repair.PDF 48K

https://mail.google.com/mail/b/ADwNV_d7VY1GXwuGpkDOiyVhPusmbiIHRgb1LmTdJYByK0zZMQTc/u/0/?ik=581c53cf5c&view=pt&search=all&perm… 1/1 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Arthur Joseph Baray Jr., Case No. 2023-02455 COMPLAINANT, v. 180 Transformations LLC CITATION License No. ROC 307799,

RESPONDENT.

The Registrar issues this Citation to 180 Transformations LLC (“Respondent”) under

A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by July 12, 2023, then under

A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or

acts charged in the underlying complaint, and the Registrar may then suspend or revoke

Respondent’s license.

THE WRITTEN COMPLAINT

On February 28, 2023, Arthur Joseph Baray Jr., (“Complainant”) filed a written

complaint with the Registrar. A copy of that Complaint is attached to this Citation.

A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT

The Registrar investigated this matter and finds cause to charge Respondent with

violations of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged

with violating:

of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21

Charge :1 A.R.S. § 32-1154(A)(3)-R4—9-108(a)

Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-018(a): A

contractor shall perform all work in a professional and workmanlike manner.

Charge :2 A.R.S. § 32-1154(A)(12) – A.R.S. § 32-1158

Failure in any material respect to comply with this chapter; Namely A.R.S. §

32-1158.

Charge :3 A.R.S. § 32-1154(A)(22)

Failure to take appropriate corrective action to comply with this chapter or with

rules adopted pursuant to this chapter without valid justification within a

reasonable period of time after receiving a written directive from the Registrar.

The written directive shall set forth the time within which the contractor is to

complete the remedial action. The time permitted for compliance shall not be

less than fifteen days from the date of issuance of the directive. A license shall

not be revoked or suspended nor shall any other penalty be imposed for a

violation of this paragraph until after a hearing has been held.

If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F).

FILING A WRITTEN ANSWER

Respondent must appear by filing with the Registrar a written answer to the citation and

complaint showing cause, if any, why Respondent’s license should not be suspended or

revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading

of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-02455. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Fax: (602) 364-0416 Email: [email redacted]

The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than July 12, 2023. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license. THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D).

of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21

INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license status may be considered as a mitigating or

of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated June 27, 2023. By: /s/ Doug Ulmer Doug Ulmer Legal Assistant Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, June 27, 2023 to: Respondent Certified Mail No: [number redacted] 180 Transformations LLC 5050 S Butts Rd Tucson, AZ 85757-9331

Copy mailed by USPS First Class mail this same date to: Respondent 180 Transformations LLC 5050 S. Butts Rd Tucson, AZ 85757-9331 Complainant Arthur Joseph Baray Jr. 7937 W Pima Farms Rd Tucson, AZ 85743

of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar

Case No. 2023-02455/du

of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Mediation Notice

Mediation Services Mediation services are available to the parties. What is Mediation? Mediation is a method of resolving disputes where the parties can end conflict without the expense and time associated with the full administrative process. Who Participates in During mediation, a mediator will attempt to help the Mediation? parties find an optimal solution to the conflict. Both parties must agree to participate in mediation, and both parties must bring a representative to mediation that has full authority to settle the entire matter. Mediation Is Not Neither the Registrar nor the Office of Administrative Mandatory Hearings will penalize a party for not agreeing to mediation. Where do the Parties The parties will meet at the Office of Administrative Meet for Mediation? Hearings to participate in mediation.

The Office of Administrative Hearings is located at 1400 West Washington, Suite 101, Phoenix, Arizona 85007. When does Mediation can occur after the Registrar issues a citation, but Mediation Occur? before the administrative hearing. Why Should Parties Mediation can be an alternative to the full administrative Consider Mediation? process. Mediation is beneficial because it is (1) time- efficient, (2) cost-effective, (3) confidential, and (4) capable of providing flexible solutions to complex problems. How to Request If the parties wish to mediate this case, they must file a Joint Mediation Request for Mediation with the Office of Administrative Hearings. A Joint Request for Mediation is included with this Mediation Notice. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA _________________________ Case No. _______________ COMPLAINANT,

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

The parties jointly request that this matter be referred to mediation in the Office of Administrative Hearings (OAH). ☐ This matter is set for hearing on __________________(date). ☐ This matter is not currently set for hearing. MEDIATION AGREEMENT By requesting this mediation and signing below, the parties understand, represent, and agree: 1. The parties are prepared to commence mediation and will be ready for mediation on _____________________(date); 2. The parties will participate in the mediation process in good faith; 3. This request for mediation is not intended to hinder or delay administrative proceedings; 4. No party will contend that the mediation limits the power of OAH and its administrative law judges to conduct an administrative hearing and issue decisions under A.R.S. §§ 41-1092 – 1092.12; 5. The parties will be courteous and respectful throughout the mediation process to all participants; 6. The mediation is completely voluntary and the principal purpose is to allow the parties a full and fair opportunity to discuss settlement; of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 7. The mediator may conduct joint and separate meetings with the parties and may suggest resolutions to the parties’ dispute, but the mediator has no authority to impose a settlement upon the parties; 8. The mediation process is confidential. Communications made, material created for or used during, and acts occurring during mediation are confidential and may not be discovered or admitted into evidence in any proceeding except as provided by A.R.S. § 12-2238; 9. The mediator is not subject to service of process or a subpoena to produce evidence or to testify regarding any evidence or occurrence relating to the mediation except as provided in A.R.S. § 12-2238(C); 10. Neither the mediator, nor the Registrar of Contractors, nor the Office of Administrative Hearings is subject to civil liability for any act or omission in connection with any mediation service or activity except for acts involving

intentional misconduct or reckless disregard of a substantial risk of injury to the rights of others; 11. Throughout the mediation process, each party must have a representative present who will have full settlement authority to settle all claims at issue in the administrative

proceeding. 12. The mediation process will terminate when: a. The parties reach settlement; b. The mediator determines that further efforts at mediation are no longer likely

to achieve a settlement; or c. One of the parties withdraws from mediation. _____________________________________ _______________________ Complainant (or representative) Date

_____________________________________ _______________________ Respondent (or representative) Date

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 PREHEARING DISCLOSURE STATEMENT INSTRUCTIONS ***DO NOT SUBMIT THESE INSTRUCTIONS WITH THE PREHEARING DISCLOSURE FORM***

ADMINISTRATIVE RULES A copy of the Arizona Administrative Code’s Rules for the Registrar of Contractors can be located on the Registrar’s Website.

PREHEARING DISCLOSURE REQUIREMENT Under A.A.C. R4-9-118(A), before a hearing, the parties must prepare a disclosure statement. The disclosure statement must contain: • A list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony; and • A list of all the exhibits that the party will use at the hearing.

FILE PREHEARING DISCLOSURE STATEMENTS • The Prehearing Disclosure Statements and Exhibits may be submitted to the Arizona Office of Administrative Hearings using any of the following: • Electronically: https://portal.azoah.com/submission/ • In-Person or by Mail: 1740 West Adams Street, Lower Level, Phoenix, Arizona 85007

EXCHANGING DISCLOSURE STATEMENTS AND EXHIBITS Under A.A.C. R4-9-118(B) (effective November 5, 2017), a party to the hearing must serve on every other party and file with the Office of Administrative Hearings a copy of: • The disclosure statement; and, • Any exhibit that the party will use at the hearing. Service: The disclosure statement and exhibits must be served on all parties in accordance with Arizona Administrative Code R2-19-108 Filing Documents. Under A.A.C. R2-19-108, service is completed by: • Personal delivery; • 1st class, certified or express mail; or • Facsimile. Timing: The disclosure statement and the exhibits must be served and filed not less than seven calendar days before the date of the hearing. Under A.A.C. R2-19-108, a document is served on a party: • On the date it is personally served; • Five days after it is mailed by express or 1st class mail; • On the date of the return receipt if it is mailed by certified mail; or • On the date indicated on the facsimile transmission.

CONSEQUENCES FOR FAILING TO DISCLOSE Under A.A.C. R4-9-108(C), if a witness or an exhibit is not timely disclosed as required the rules, and good cause for the failure to disclose is not shown, then the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

Form RC-L-800A Prehearing Disclosure Statement Rev. 10/08/2019 Instructions Form PREHEARING DISCLOSURE STATEMENT FORM RC-L-800A

PART 1: WITNESS LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony. If you need additional space to list all witnesses, complete and attach additional Witness Lists. Example 1. Name 2. Telephone Number 3. Email Address

John Doe (123) 456-7890 [email redacted] 4. Subject Matter of Expected Testimony

John Doe will testify regarding the poor workmanship and poor installation of the Garage Door. Mr. Doe will also testify regarding the invoices and change orders for the project.

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 1 of 3 PART 2: EXHIBIT LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the exhibits that the party will use at the hearing. Note: All exhibits listed below must be provided to all parties to the hearing. See A.A.C. R4-9-118(B). If you need additional space to list all witnesses, complete and attach additional Exhibit Lists. Example Contract for new garage door. Invoice #10001 – Cost for garage door replacement.

Exhibit Exhibit Name

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 2 of 3 PART 3: ACKNOWLEDGEMENT & SIGNATURE I certify that the above information is true and correct and that I will serve a copy of this disclosure statement and any exhibits listed in Part 2 to all parties to the hearing in accordance with A.A.C. R4-9-118. I acknowledge and understand that if I fail to properly disclose a witness or exhibit, the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

I am the (check one):  Complainant  Respondent Docket No.

Print Name Signature Date

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 3 of 3