2023A-11153-CHC-ROC Notice of Hearing and Packet MAILED

2023A-11153-CHC-ROC · Registrar of Contractors · 2024-01-23

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jani Alverson , Case No. 2023-11153 COMPLAINANT, Docket No. 2023A-11153-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE Kortsen Pebler LLC, License Nos. ROC 328611 & 332775,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D).

HEARING INFORMATION The hearing is set for:

March 5, 2024 9:00 AM Adam Stone 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 December 26, 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)(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/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf 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 January 23, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail January 23, 2024 to:

Respondent(s) Kortsen Pebler LLC 22424 South Ellsworth Road #1822 Queen Creek, AZ 85142 Complainant(s) Jani Alverson 21484 E Mewes Rd Queen Creek, AZ 85142

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. 2023-11153 /

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

Complainant: jani alverson 21484 e mewes rd queen creek, AZ 85142

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: Kortsen Pebler LLC DBA: 22424 South Ellsworth Road #1822 Queen Creek, AZ 85142

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 October 18, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-11153

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for November 7, 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.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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.

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, Patricia Schuette Patricia Schuette, Investigator 602 7716744 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Respondent Complainant

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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 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.

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 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Jobsite Inspection Notes

Case No.: 2023-11153 Investigator: Patricia Schuette Inspection Date: November 7, 2023 Inspection Time: 10:00 AM

Complainant: jani alverson Respondent: Kortsen Pebler LLC Not Present: Not Present:

Jobsite General Notes: Only the complainant was present for the inspection. I explained process moving forward. If a violation is present a written directive would be issued giving the respondent a minimum of 15 days for correction. The ROC does not dictate how correction occurs other than it must be in a workmanship like manner and brought up to minimum workmanship standards.

Complaint Item: 1-No water to hose bib on north side front property or the hose bib in the back of the house. Investigator’s Observation: Verified. Neither hose bib had running water. Respondent to identify cause and repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 2-Very large crack in cement garage floor. Investigator’s Observation: Verified. A few cracks in the slab exceed the tolerance. Cracks in excess of 3/32” width, or 1/8” vertical displacement or compound cracks in excess of 1/16” in width are not acceptable. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complaint Item: 3-Sliding door to back does not lock, screen door fell off. Investigator’s Observation: Verified. The sliding glass door does not lock. Respondent to repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 4-Gas line behind stove sticks out too far, you can’t push the stove back enough. Investigator’s Observation: Unverified. The flex line appears to need some adjustment to allow the appliance to sit further back. It is also possibly due to the anti-tip bracket that is installed further away from the wall. Governing Rule: N/A

Complaint Item: 5-Hole in the wall where gas line is to the stove. Investigator’s Observation: Verified. There is a hole on both sides of the wall closer towards the floor. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 6-Plates left off walls. Investigator’s Observation: Verified. There are a couple missing wall plates. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 7-Acessories such as toilet paper holders, outside sconces, door handles, and light fixtures are loose and coming out of the wall. Investigator’s Observation: Verified. There are multiple fixtures that are not secure and loose. Respondent to identify all and correct within appropriate means. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 8-Garage door is very hard to open. Investigator’s Observation: Verified. The house to garage door handle is difficult to turn to open door. Respondent to repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 9-The quality of the hardware is not what was discussed. This was supposed to be a “custom built” house and he put very cheap stuff throughout. Investigator’s Observation: Unverified. Governing Rule: N/A

Complaint Item: 10-Hole in foundation outside of guest bathroom exposing sunlight into the bathroom. Investigator’s Observation: Verified. There is a large void approximately 12” wide and 4-5” in height in the stem wall/foundation that exposes the sewer lines to the bathroom. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 11-Wires sticking out of the ceiling fan mount, light fixture is mounted off center so the hole is exposed. Investigator’s Observation: Verified. The ceiling fan mount has one of the wires that is visible outside of the mount and it is either off center or the hole was cut too big in the drywall leaving a gap. Respondent to repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complaint Item: 12-Built in shelves don’t have proper support and the one in the laundry room area broke. Investigator’s Observation: Verified. The shelves appear to be too wide for the support provided causing initial bowing and eventual collapse. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 13-Unfinish floor throughout. We were supposed to have hard floor LVP or tile throughout the common areas and bedrooms were going to be carpet which you can see on the project estimate attached. Dawson made a verbal agreement to a polished cement (similar to the flooring in Dawsons office) in the main areas and it was left unfinished and there no carpet. Investigator’s Observation: Verified. There is ground down concrete throughout the house however, it does not appear to have a densifier applied to harden and seal the surface. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 14-Outside fireplace looks like its build on his property next door but is supposed to be on our property (the propane tanks are on ours) or its built on an easement. Fireplace doesn’t work. Investigator’s Observation: Verified. Either the fireplace was not installed or it was installed on the adjoining property. The fireplace on the adjoining property is not operable. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 15-Concern of proper insulation due to unusually high electric bills, and we have seen cats coming in and out of the hole in the side of the house and hear them inside the walls. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Investigator’s Observation: Unverified. The wall insulation is not visible and cannot confirm or verify proper R value or installation. Governing Rule: N/A

Complaint Item: 16-No soft close hinges on any cabinets. Investigator’s Observation: Verified. There were multiple cabinets that did have the soft close installed but not all. Respondent to identify which are missing and correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Complaint Item: 17-Cracks underneath front exterior window, and around the south side of the house. Investigator’s Observation: Verified. There is some stucco cracking that is at 1/16” or wider on the south side of house. Cracks that are at or exceed 1/16” should be corrected one time within the first year. It was also noted on the SE corner of the garage stem what where the concrete has popped away from the foundation strap. Respondent to repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

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: jani alverson 21484 e mewes rd queen creek, AZ 85142

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Respondent: Kortsen Pebler LLC DBA: 22424 South Ellsworth Road #1822 Queen Creek, AZ 85142

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 November 22, 2023

License No. ROC 328611

Re:Complaint No. 2023-11153

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 December 12, 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:

Compliance Item: 1-No water to hose bib on north side front property or the hose bib in the back of the house. Investigator’s Observation: Verified. Neither hose bib had running water. Respondent to identify cause and repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

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 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item: 2-Very large crack in cement garage floor. Investigator’s Observation: Verified. A few cracks in the slab exceed the tolerance. Cracks in excess of 3/32” width, or 1/8” vertical displacement or compound cracks in excess of 1/16” in width are not acceptable. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 3-Sliding door to back does not lock, screen door fell off. Investigator’s Observation: Verified. The sliding glass door does not lock. Respondent to repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 5-Hole in the wall where gas line is to the stove. Investigator’s Observation: Verified. There is a hole on both sides of the wall closer towards the floor. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 6-Plates left off walls. Investigator’s Observation: Verified. There are a couple missing wall plates. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 7-Acessories such as toilet paper holders, outside sconces, door handles, and light fixtures are loose and coming out of the wall.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Investigator’s Observation: Verified. There are multiple fixtures that are not secure and loose. Respondent to identify all and correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 8-Garage door is very hard to open. Investigator’s Observation: Verified. The house to garage door handle is difficult to turn to open door. Respondent to repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 10-Hole in foundation outside of guest bathroom exposing sunlight into the bathroom. Investigator’s Observation: Verified. There is a large void approximately 12” wide and 4-5” in height in the stem wall/foundation that exposes the sewer lines to the bathroom. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 11-Wires sticking out of the ceiling fan mount, light fixture is mounted off center so the hole is exposed. Investigator’s Observation: Verified. The ceiling fan mount has one of the wires that is visible outside of the mount and it is either off center or the hole was cut too big in the drywall leaving a gap. Respondent to repair within appropriate means.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 12-Built in shelves don’t have proper support and the one in the laundry room area broke. Investigator’s Observation: Verified. The shelves appear to be too wide for the support provided causing initial bowing and eventual collapse. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 13-Unfinish floor throughout. We were supposed to have hard floor LVP or tile throughout the common areas and bedrooms were going to be carpet which you can see on the project estimate attached. Dawson made a verbal agreement to a polished cement (similar to the flooring in Dawsons office) in the main areas and it was left unfinished and there no carpet. Investigator’s Observation: Verified. There is ground down concrete throughout the house however, it does not appear to have a densifier applied to harden and seal the surface. Respondent to correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 14-Outside fireplace looks like its build on his property next door but is supposed to be on our property (the propane tanks are on ours) or its built on an easement. Fireplace doesn’t work. Investigator’s Observation: Verified. Either the fireplace was not installed or it was installed on the adjoining property. The fireplace on the adjoining property is not operable. Respondent to correct within appropriate

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 16-No soft close hinges on any cabinets. Investigator’s Observation: Verified. There were multiple cabinets that did have the soft close installed but not all. Respondent to identify which are missing and correct within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

Compliance Item: 17-Cracks underneath front exterior window, and around the south side of the house. Investigator’s Observation: Verified. There is some stucco cracking that is at 1/16” or wider on the south side of house. Cracks that are at or exceed 1/16” should be corrected one time within the first year. It was also noted on the SE corner of the garage stem what where the concrete has popped away from the foundation strap. Respondent to repair within appropriate means. Governing Rule: ARS §32-1154 (A) (3) namely R4-108, Poor work not performed in accordance with professional industry standards.

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

Compliance Item: 4-Gas line behind stove sticks out too far, you can’t push the stove back enough. Investigator’s Observation: Unverified. The flex line appears to need some adjustment to allow the appliance to sit further back. It is also possibly due to the anti-tip bracket that is installed further away from the wall. Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item: 9-The quality of the hardware is not what was discussed. This was supposed to be a “custom built” house and he put very cheap stuff throughout. Investigator’s Observation: Unverified. Governing Rule: N/A

Compliance Item: 15-Concern of proper insulation due to unusually high electric bills, and we have seen cats coming in and out of the hole in the side of the house and hear them inside the walls. Investigator’s Observation: Unverified. The wall insulation is not visible and cannot confirm or verify proper R value or installation. Governing Rule: N/A

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

Sincerely,

Patricia Schuette Patricia Schuette, Investigator 602 7716744 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Respondent Complainant

License mailing address (if different from account/company address of record):

Kortsen Pebler LLC

22424 South Ellsworth Road #1822 Queen Creek, AZ 85142

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jani Alverson, Case No. 2023-11153 COMPLAINANT, v. Kortsen Pebler LLC CITATION License Nos. ROC 328611 & 332775, RESPONDENT.

The Registrar issues this Citation to Kortsen Pebler LLC (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by January 10, 2024, 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(s). THE WRITTEN COMPLAINT On October 4, 2023, Jani Alverson (“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 violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating: 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. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. of 5

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 :2 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(s) 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(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-11153. 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 Email: [email redacted]

of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 January 10, 2024. 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(s). 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). 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 of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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(s) status may be considered as a mitigating or 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(s) 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. of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Dated December 26, 2023. By: /s/ Shaquira Adebule Shaquira Adebule Legal Assistant II Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, December 26, 2023 to: Respondent Certified Mail No: [number redacted] Kortsen Pebler LLC 22424 South Ellsworth Road #1822 Queen Creek, AZ 85142

Copy mailed by USPS First Class mail this same date to: Respondent Kortsen Pebler LLC 22424 South Ellsworth Road #1822 Queen Creek, AZ 85142 Complainant Jani Alverson 21484 e mewes rd Queen Creek, AZ 85142 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. 2023-11153 / SA

of 5

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 1740 W Adams St., Lower Level, 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 1) A written contract is not being provided because there was no official contract for the property related to this complaint. Everything was an oral contract. 2) We were give a budget before work began (attached), the construction loan was supposed to cover all work. But shortly after work began Steven began sending us invoices directly, at first he said we’d get paid back once the loan was funded. We’ve attached the invoices he sent us and copies of the checks we wrote him. None of which was reimbursed by the loan. 3) Steven was contracted to build a 1,500 square foot home on 22224 S 208th St, Queen Creek. He had complete control over the design, construction, and execution. There were no change orders given by us. 4) Contract was negotiated by Dawson Alverson and Steven Kortsen Pebler II. 5) Steven would bill us monthly for the “horizontal” work, once that was completed we got a construction loan through CenterStreet. That loan was supposed to cover all the “Vertical” costs. But Steven started sending us invoices directly, stating that we’d get reimbursed once he loan funded. We paid the invoices and never got reimbursed. 6) Steven would invoice us and we paid him 7) 12/31/2022 8) n/a KORTSEN PEBLER LLC 5/9/2022 22424 SOUTH ELLSWORTH ROAD, #1822 QUEEN CREEK, ARIZONA 85142 KB1‐324037 & KA‐328611 480.389.4648 [email redacted]

PLAN # HOUSE 1, LOT A LIVABLE SQUARE FOOTAGE 1525 GARAGE SQUARE FOOTAGE 429 PATIO SQUARE FOOTAGE 370 APPRAISED VALUE $495,200.00 LOAN TO VALUE (69%) $341,688.00 PERMIT# B22‐0649 APN 304‐65‐101C ADDRESS: 22218 S 208TH ST. QUEEN CREEK, AZ. 85142 PENDING START DATE 7/1/2022 COMPLETION DATE 12/31/2022

DICIPLINES ARCHITECTURE/DESIGN N/A STRUCTURAL ENGINEERING N/A CIVIL ENGINEERING N/A SURVEYING N/A INTERIOR DESIGN N/A PAD ENGINEERING & CERTIFICATION N/A PLAN COPIES N/A PERMITS N/A EARTHWORK PAD 0.00 EARTHWORK GRADING & DRAINAGE 0.00 FOUNDATION SLAB 76,00.00 FOUNDATION FLATWORK 31,000.00 CARPENTRY ROUGH LABOR 105,528.00 CARPENTRY FINISH LABOR 0.00 CARPENTRY LUMBER 0.00 CARPENTRY TRUSSES 0.00 CARPENTRY HARDWARE 0.00 CARPENTRY CRANE 0.00 ROOFING LABOR & MATERIAL 15,000.00 ROOFING MATERIAL 0.00 MECHANICAL LABOR & MATERIAL ROUGH 14,000.00 MECHANICAL LABOR & MATERIAL TRIM 2,500.00 MECHANICAL EQUIPMENT 2,500.00 PLUMBING LABOR & MATERIAL UNDERGROUND ROUGH 22,020.00 PLUMBING LABOR & MATERIAL TRIM 1,000.00 PLUMBING FIXTURES 3,000.00 ELECTRICAL LABOR ROUGH 10,000.00 ELECTRICAL LABOR TRIM 4,000.00 LIGHT FIXTURES 1,240.00 STRUCTURED WIRING LABOR & MATERIALS 3,500.00 STRUCTURED WRINING LABOR TRIM 0.00 STRUCTURED WIRING EQUIPMENT 0.00 DOORS & TRIMWORK EXTERIOR LABOR & MATERIAL 4,000.00 DOORS & TRIMWORK EXTERIOR MATERIAL 0.00 DOORS & TRIMWORK INTERIOR LABOR & MATERIAL 6,500.00 DOORS & TRIMWORK INTERIOR MATERIAL 0.00 WINDOWS 5,000.00 GARAGE DOORS 2,500.00 STUCCO WALL SYSTEMS EXTERIOR 25,000.00 DRYWALL WALL SYSTEMS INTERIOR 25,000.00 PAINT WALL FINISHES EXTERIOR 5,000.00 PAINT WALL FINISHES INTERIOR 5,000.00 PRECAST/CANTERRA/MOULDING 0.00 CABINETRY LABOR & MATERIAL 10,000.00 SOLID SURFACES COUNTERTOPS 8,000.00 SOLID SURFACES FLOORS 7,500.00 SOLID SURFACES WALLS 4,000.00 CARPETING & PAD 2,500.00 ORNAMENTAL IRON 0.00 LANDSCAPING 6,400.00 TEMPORARY FACILITIES TRASH 0.00 TEMPORARY FACILITES TOILET 0.00 TEMPORARY FACILITES FENCING 0.00 TEMPORARY FACILITES SIGNAGE 0.00 TEMPORARY FACILITIES TRAFFIC CONTROL 0.00 TEMPORARY FACILITIES FUEL 0.00 TEMPORARY FACILITIES ELECTRICAL 0.00 TEMPORARY FACILITES SECURITY 0.00 PROJECT SUPERVISION 0.00 CONTENGENCY RESERVE 10,000.00 OVERHEAD 0.00 PROFIT 0.00 CONSTRUCTION COST TOTAL 341,688.00 COST PER LIVABLE SQUARE FOOT 225.82 qc_district_expenses 11/1/2021

PAYEE DATE AMOUNT SCOPE

ARIZONA CORPORATION COMMISSION 2/6/2021 150.00 EXPEDITED LLC FILING ARIZONA DEPARTMENT OF REVENUE 2/6/2021 12.00 TPT LICENSE LANG & KLAIN PLLLC 2/6/2021 2,400.00 DUE DILIGENCE, REAL ESTATE REVIEW, CONTRACT DOCUMENTS JUAN MATUS DESIGN & ENGINEERING 2/6/2021 4,400.00 RESIDENTIAL PLAN A 2200 JUAN MATUS DESIGN & ENGINEERING 2/6/2021 4,800.00 RESIDENTIAL PLAN B 2400 JUAN MATUS DESIGN & ENGINEERING 2/6/2021 5,200.00 RESIDENTIAL PLAN C 2600 D2 SURVEYING 2/8/2021 4,100.00 RESIDENTIAL SURVEY/LOT SPLIT D2 SURVEYING 2/8/2021 5,100.00 COMMERCIAL SURVEY/LOT COMBO VISION IT 3/18/2021 2,000.31 RESIDENTIAL/COMMERCIAL SIGNAGE DGK CIVIL 3/23/2021 12,500.00 COMMERCIAL SURVEY/LOT COMBO DGK CIVIL 4/21/2021 3,750.00 RESIDENTIAL FINISHED FLOOR ELEVATIONS ANDERSEN JANG DESIGN 5/5/2021 3,600.00 RESIDENTIAL ELEVATION RENDERINGS MARICOPA COUNTY 10/5/2021 1,409.12 PROPERTY TAXES ARMANDO LANDSCAPING 10/5/2021 5,400.00 LOT CLEAN UP TOWN OF QUEEN CREEK 4/21/2021 700.00 LOT COMBO & LOT SPLIT

RECONCILIATION DATE AMOUNT SCOPE

GROSS TOTAL 11/1/2021 55,521.23 TOTAL GROSS COSTS SALES TAX 11/1/2021 ‐ TPT TAX EXEMPT PROFIT (10%) 11/1/2021 4,871.23 PROFIT ON GROSS EXLUDING TAX NET TOTAL 11/1/2021 60,392.46 TOTAL NET COSTS

CREDITS DATE AMOUNT SCOPE

STEVEN KORTSEN PEBLER II 1,250.00 FUND ACCOUNT DAWSON ALVERSON 1,250.00 FUND ACCOUNT DAWSON ALVERSON 4/2/2021 13,000.00 DRAW #1 DAWSON ALVERSON 11/30/2021 12,156.77 DRAW #2 STEVEN KORTSEN PEBLER II 11/30/2021 26,406.77 COSTS FUNDED (3) DRAWS DAWSON ALVERSON 11/30/2021 26,406.77 COSTS FUNDED (3) DRAWS

NET TOTAL 11/1/2021 60,392.46 TOTAL GROSS COSTS FOR 2021 CONSTRUCTION GENERAL CONDITIONS

qc_district_expenses_specs_1_3_4

PAYEE DATE AMOUNT SCOPE TOWN OF QUEEN CREEK 2/8/2022 467.97 MINOR LAND DIVISION TOWN OF QUEEN CREEK 2/8/2022 467.97 LOT COMBINATION TOWN OF QUEEN CREEK 2/10/2022 800.05 PERMIT REVIEW SPEC 1 TOWN OF QUEEN CREEK 2/10/2022 753.46 PERMIT REVIEW SPEC 3 DAVIS VALUATION GROUP LLC 2/17/2022 2,750.00 RFP LOT AATI LLC 2/17/2022 1,680.00 SOILS TESTING ENGINEERING RESIDENTIAL AATI LLC 2/17/2022 1,680.00 SOILS TESTING ENGINEERING COMMERCIAL SRP DESIGN 2/17/2022 5,250.00 ELECTRICAL DESIGN SPEC 1 SRP DESIGN 2/18/2022 5,250.00 ELECTRICAL DESIGN SPEC 2 EMBARK ARCHITECTURE 2/18/2022 7,500.00 PLANS DEPOSIT SPEC 4 ELLSWORTH SOUTHWEST BONDING & INSURANCE 2/18/2022 6,773.75 GENERAL LIABILITY INSURANCE, NO BOND UNTIL CONSTRUCTION EMBARK ARCHITECTURE 3/15/2022 1,800.00 ADVERTISING RENDERINGS ALL PRO FENCE 3/15/2022 3,806.19 SITE FENCE 9 MONTHS VISIONIT 3/15/2022 776.16 SAFETY VESTS LIMA ONE CAPITAL 3/18/2022 550.00 HOUSE 1 APPRAISAL LIMA ONE CAPITAL 3/18/2022 550.00 HOUSE 3 APPRAISAL AZCC 3/18/2022 105.00 KORTSEN PEBLER TOOELE DEVELOPMENT FILING FIVERR ADVERTISING 3/18/2022 120.00 KORTSEN PEBLER TOOELE LOGO JMNZ CIVIL 3/18/2022 7,500.00 UTILITY UNDERGROUND EXCAVATION JMNZ CIVIL 3/18/2022 7,200.00 HOUSE 1 PAD JMNZ CIVIL 3/18/2022 7,200.00 HOUSE 2 PAD SCOTT BLUEPRINT 4/15/2022 465.24 PLAN COPIES THE LOGOMAN 4/15/2022 9,220.14 SITE FENCE SCRIM TOWN OF QUEEN CREEK 4/15/2022 350.00 RFP MLD APPLICATION TOWN OF QUEEN CREEK 4/15/2022 13,464.45 B22‐0649 PERMIT TOWN OF QUEEN CREEK 4/15/2022 13,013.30 B22‐0650 PERMIT TOWN OF QUEEN CREEK 4/15/2022 250.00 WATER SERVICE ACCOUNT DEPOSIT HOUSE 1 TOWN OF QUEEN CREEK 4/15/2022 250.00 WATER SERVICE ACCOUNT DEPOSIT HOUSE 3 TOWN OF QUEEN CREEK 4/15/2022 250.00 WATER SERVICE ACCOUNT DEPOSIT COMMERCIAL LOT 1 TOWN OF QUEEN CREEK 4/15/2022 250.00 WATER SERVICE ACCOUNT DEPOSIT COMMERCIAL LOT 2 D2 SURVEYING 4/15/2022 1,260.00 CONCRETE LOT STAKING HOUSE 1 D2 SURVEYING 4/15/2022 1,260.00 CONCRETE LOT STAKING HOUSE 3 D2 SURVEYING 4/15/2022 4,200.00 RFP LOT MLD SURVERYING PACKET HYPHEN SOLUTIONS 4/15/2022 1,879.60 PROJECT MANAGEMENT SOFTWARE 05/2022‐12/2022 AATI LLC 4/25/2022 2,500.00 PAD TESTING & REPORT HOUSE 1 AATI LLC 4/25/2022 2,500.00 PAD TESTING & REPORT HOUSE 2 AATI LLC 4/25/2022 2,500.00 PAD TESTING & REPORT COMMERCIAL PAD 1 AATI LLC 4/25/2022 2,500.00 PAD TESTING & REPORT COMMERCIAL PAD 2 CENTRAL PLUMBING SUPPLY 4/25/2022 2,699.72 UNDERGROUND PLUMBING MATERIALS HOUSE 1 PARTIAL CENTRAL PLUMBING SUPPLY 4/25/2022 2,876.46 UNDERGROUND PLUMBING MATERIALS HOUSE 3 PARTIAL OVERHEAD 4/15/2022 12,466.95 10% PROFIT 4/15/2022 12,466.95 10% SOUTHWEST BONDING & INSURANCE 4/15/2022 15,492.93 GENERAL LIABILITY INSURANCE, COURSE OF CONSTRUCTION COST ON GROSS ($103.56) SUBTOTAL DUE 4/15/2022 165,096.29 KORTSEN PEBLER TOOELE PROJECTS LLC 03/15/2022 DRAW CONTINGENCY FUND 4/15/2022 2,709.77 CONTINGENCY RESERVE (1.5%) LEGAL FUND 4/15/2022 825.48 LEGAL REVIEW FUND (.5%) SUBTOTAL DUE 4/15/2022 168,631.54 GROSS DRAWS FEBRUARY‐APRIL DRAW #3 4/25/22022 87,515.72 DRAW #3 APRIL FUNDING 43,757.86 paid 4/29/2022, check #1101

DRAW #1 2/20/2022 45,196.96 DRAW #1 FUNDING DRAW #2 3/20/2022 35,918.86 DRAW #2 FUNDING NET TOTAL PREPAIDS 4/20/2022 60,392.46 PREPAID DESIGN COSTS NET TOTAL PREPAIDS 4/20/2022 81,115.82 PRE PAID PLANNING COSTS KORTSEN PEBLER LLC #1 #3 22424 SOUTH ELLSWORTH ROAD, #1822 QUEEN CREEK, ARIZONA 85142 KB1‐324037 & KA‐328611 480.389.4648 [email redacted]

PLAN #1 & PLAN #3 LIVABLE SQUARE FOOTAGE: 1525 1817 GARAGE SQUARE FOOTAGE: 429 429 PATIO SQUARE FOOTAGE: 370 274 APPRAISED VALUE: 495,200.00 546,900.00 LOAN TO VALUE: 69% 69% PERMIT#: B22‐0649 B22‐0650 APN: 304‐65‐101C 304‐65‐101E ADDRESS: 22218 S 208TH ST 22224 S 208TH ST START DATE: 5/1/2022 5/1/2022 COMPLETION DATE: TBD TBD

PAYEE DATE AMOUNT SCOPE TOQC WATER 5/25/2022 133.85 WATER SERVICE CM PRECISION 5/25/2022 5,894.33 HOUSE #1 PAD CM PRECISION 5/25/2022 5,894.33 HOUSE #3 PAD THOMAS REPROGRAPHICS 5/25/2022 297.85 PLAN COPIES HAULAWAY STORAGE 5/25/2022 441.03 STORAGE CONNEX DELIVERY & MONTH OVERHEAD 5/25/2022 1,266.14 10% PROFIT 5/25/2022 1,266.14 10% SOUTHWEST BONDING & INSURANCE 5/25/2022 1,573.46 GENERAL LIABILITY INSURANCE, COURSE OF CONSTRUCTION COST ON GROSS ($103.56) SUBTOTAL DUE 5/25/2022 16,767.13 KORTSEN PEBLER TOOELE PROJECTS LLC 05/25/2022 DRAW CONTINGENCY FUND 5/25/2022 0.00 CONTINGENCY RESERVE (1.5%) LEGAL FUND 5/25/2022 0.00 LEGAL REVIEW FUND (.5%) SUBTOTAL DUE 5/25/2022 229,024.00 GROSS DRAWS FEBRUARY‐APRIL DRAW #4 5/25/2022 16,183.09 DRAW #4 MAY FUNDING TOTAL CONSTRUCTION PREPAIDS 6/1/2022 245,207.09 CONSTRUCTION PREPAIDS

8,383.57 paid 6/9/2022, check #1103 KORTSEN PEBLER LLC #1 #3 22424 SOUTH ELLSWORTH ROAD, #1822 QUEEN CREEK, ARIZONA 85142 KB1‐324037 & KA‐328611 480.389.4648 [email redacted]

MAY 2022 ACCOUNTING PAYEE DATE AMOUNT SCOPE TOQC WATER 5/25/2022 133.85 WATER SERVICE CM PRECISION 5/25/2022 5,894.33 HOUSE #1 PAD CM PRECISION 5/25/2022 5,894.33 HOUSE #3 PAD THOMAS REPROGRAPHICS 5/25/2022 297.85 PLAN COPIES HAULAWAY STORAGE 5/25/2022 441.03 STORAGE CONNEX DELIVERY & MONTH OVERHEAD 5/25/2022 1,266.14 10% PROFIT 5/25/2022 1,266.14 10% SOUTHWEST BONDING & INSURANCE 5/25/2022 1,573.46 GENERAL LIABILITY INSURANCE, COURSE OF CONSTRUCTION COST ON GROSS ($103.56) SUBTOTAL DUE 5/25/2022 16,767.13 KORTSEN PEBLER TOOELE PROJECTS LLC 05/25/2022 DRAW CONTINGENCY FUND 5/25/2022 0.00 CONTINGENCY RESERVE (1.5%) LEGAL FUND 5/25/2022 0.00 LEGAL REVIEW FUND (.5%) SUBTOTAL DUE 5/25/2022 229,024.00 GROSS DRAWS FEBRUARY‐APRIL DRAW #4 5/25/2022 16,183.09 DRAW #4 MAY FUNDING TOTAL CONSTRUCTION PREPAIDS 6/1/2022 245,207.09 CONSTRUCTION PREPAIDS

JUNE & JULY 2022 ACCOUNTING LDP 6/25/2022 2,000.00 POOL & SPA PLANS HOUSE 1 & 3 VISIONIT IT 6/25/2022 200.5 RENDERING SIGNS HOUSE 1 & 3 AMAZON 6/25/2022 339.8 SECURITY CAMERAS TOQC WATER 6/25/2022 97.67 WATER SERVICE HOUSE 1 & 3 HAULAWAY STORAGE 6/25/2022 132.75 CONNEX CONTAINER RENTAL VISIONIT IT 6/25/2022 215.6 KEEP OUT SIGN TOQC PERMIT 7/13/2022 323.15 PERMIT FEE B22‐0649 TOQC PERMIT 7/13/2022 312.32 PERMIT FEE B22‐0650 OVERHEAD 6/25/2022 362.18 10% PROFIT 6/25/2022 362.18 10% SOUTHWEST BONDING & INSURANCE 6/25/2022 450.09 GENERAL LIABILITY INSURANCE, COURSE OF CONSTRUCTION COST ON GROSS ($103.56) SUBTOTAL DUE 6/25/2022 4,796.24 KORTSEN PEBLER TOOELE PROJECTS LLC 05/25/2022 DRAW CONTINGENCY FUND 6/25/2022 0 CONTINGENCY RESERVE (1.5%) LEGAL FUND 6/25/2022 0 LEGAL REVIEW FUND (.5%) SUBTOTAL DUE 6/25/2022 4,796.24 GROSS DRAWS FEBRUARY‐APRIL RAINSTAR CAPITAL GROUP 7/11/2022 $3,500.00 ORIGINATION FEE (NO 10/10 FEE) DRAW #5 6/25/2022 8,296.24 DRAW #4 MAY FUNDING TOTAL CONSTRUCTION PREPAIDS 6/25/2022 253,503.33 CONSTRUCTION PREPAIDS

4,148.12 paid 7/14/2022, check #1108 KORTSEN PEBLER TOOELE DEVELOPMENT Invoice LLC 22424 SOUTH ELLSWORTH ROAD #1822 Date Invoice # AZ 85142 8/11/2022 1

Bill To KORTSEN PEBLER TOOELE DEVELOPMENT LLC 22424 SOUTH ELLSWORTH ROAD #1822 QUEEN CREEK, ARIZONA 85142

P.O. No. Terms Project

Due on receipt

Quantity Description Rate Amount

centerstreet_draw_loan_short_TOOELE_EAGLE_LLC 43,000.00 43,000.00

Thank you for your business. Total $43,000.00 Kortsen Pebler LLC Invoice 22424 S ELLSWORTH RD #1822 Date Invoice # AZ 85142 8/31/2022 1020

Bill To Kortsen Pebler Tooele Development LLC 22424 South Ellsworth Road #1822 Queen Creek, AZ 85142

P.O. No. Terms Project

Net 30

Quantity Description Rate Amount

DRAW #02, 8/30/2022 16,327.86 16,327.86

Total $16,327.86 Kortsen Pebler Tooele Development LLC Invoice 22424 South Ellsworth Road #1822 Date Invoice # AZ 85142 10/15/2022 100

Bill To Tooele & The Eagle LLC 22237 South Ellsworth Road Queen Creek, Arizona 85142

P.O. No. Terms Project

Due on receipt

Quantity Description Rate Amount

DRAW #03, 9/30/2022, 59,083.03, INV 1022 29,541.51 29,541.51

Total $29,541.51 Kortsen Pebler Tooele Development LLC Invoice 22424 South Ellsworth Road #1822 Date Invoice # AZ 85142 11/29/2022 24

Bill To Tooele & The Eagle LLC 22237 South Ellsworth Road Queen Creek, Arizona 85142

P.O. No. Terms Project

Due on receipt

Quantity Description Rate Amount

DRAW #04, 11/30/2022, $95,272.05, DRAW #04, INV#23, INV#24 47,636.03 47,636.03

Total $47,636.03 Complaint #2023-11153 P 1 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 2 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 3 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 4 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 5 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 6 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 7 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 8 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 9 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 10 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 11 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 12 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 13 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 14 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 15 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 16 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 17 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 18 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 19 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 20 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 21 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 22 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 23 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 24 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 25 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 26 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 27 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 28 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Complaint #2023-11153 P 29 JSI date 11/7/23/2023 at 10:00AM JSI PHOTOS Jobsite Inspection Notes