2023A-12393-CHC-ROC Notice of Hearing and Packet MAILED

2023A-12393-CHC-ROC · Registrar of Contractors · 2024-01-05

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jarod Eagles , Case No. 2023-12393 COMPLAINANT, Docket No. 2023A-12393-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE Bjelde Construction LLC License No. ROC 260364,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

February 12, 2024 9:00 AM Tammy Eigenheer 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 4, 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)(1)

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 December 29, 2023.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors

Copy mailed via USPS First Class mail December 29, 2023 to: Respondent(s) Bjelde Construction LLC PO Box 50962 Mesa, AZ 85208

Complainant(s) Jarod Eagles 4407 S Electron Mesa, AZ 85212

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. 2023-12393 /

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: Jarod Eagles 4407 S Electron Mesa, AZ 85212

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: Bjelde Construction LLC DBA: 415 S 48th St Ste 111 Tempe, AZ 85281

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 November 7, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-12393

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for November 17, 2023 at 09:30 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, Albert Bernal Albert Bernal, Investigator [number redacted] [email redacted] 1700 W Washington St, Suite 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.

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.

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.: 2023-12393 Investigator: Albert Bernal Inspection Date: November 17, 2023 Inspection Time: 09:30 AM

Complainant: Jarod Eagles Respondent: Bjelde Construction Not Present: LLC Not Present:

Jobsite General Notes: This investigation was regarding the construction of a new guest house at the Complainant’s residence. At this investigation the Complainant stated that the Respondent had 14 months to do the work and he didn’t do anything. The Complainant then hired another contractor to start the work (Work described on complaint item below). The work started approximately a week prior to this JSI. The Complainant communicated to me that he has pictures and video of what it looked like before this job-site inspection. The Complainant said that both parties met on Monday at 5:00 PM and the Respondent said to him that he wanted to pay him his money back ($37,500.00) so the Complaint asked when?, and the Respondent replied that didn’t have the money at the moment. The complainant said that the conversation was friendly, but it did nothing good for him since the Respondent didn’t have the money, or there were not timelines established by the Respondent to start the work.

Complaint Item: 1 - Timelines established within the written agreement have not been met; Investigator’s Observation: This complaint item refers to the construction of a new guest house that was contracted between the two parties, but the work was not started by the Respondent. A the time of this inspection the Complainant communicated to me that he had hired another contractor to start the work since Bjelde Construction LLC did not started any of the site work that was contracted to do. At this investigation I noted that the sewer line was trenched and exposed in

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

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the front of the house, and also noted that there were footings dug and forms installed in the backyard of the residence. Governing Rule: ARS §32-1154 (A)(1) Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal.

Complaint Item: 2 - No communication with all attempts to reach out to the company determine status of project ; Investigator’s Observation: The allegation does not implicate workmanship issue Governing Rule: N/A

Complaint Item: 3 - initial office building that is listed on ROC license and company website is now abandoned Investigator’s Observation: The allegation does not implicate workmanship issue 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 RCC100 08/19

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jarod Eagles, Case No. 2023-12393 COMPLAINANT, v. Bjelde Construction LLC , CITATION License No. ROC 260364, RESPONDENT.

The Registrar issues this Citation to Bjelde Construction LLC (“Respondent”) under

A.R.S. § 32-1155(A). If Respondent fails to answer thisCitation by December 19 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(s).

THE WRITTEN COMPLAINT

On October 30, 2023, Jarod Eagles (“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)(1) Abandonment of a contract or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal. of 5

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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. 2023-12393. 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]

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 December 19, 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, of 5

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 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). of 5

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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. Dated December 4, 2023. By: /s/ Mary Coyne Mary Coyne, CP Paralegal Manager Legal Department Arizona Registrar of Contractors

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

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Respondent Certified Mail No: [number redacted]

Bjelde Construction LLC 415 S 48th St Ste 111 Tempe, AZ 85281 Copy mailed by USPS First Class mail this same date to: Bjelde Construction LLC 415 S 48th St Ste 111 Tempe, AZ 85281

Complainant Jarod Eagles 4407 S Electron Mesa, AZ 85212

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. 2023-12393 / MTH

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LNB ENTERPRISES, INC. 415 S. 48th St. Suite 111 Tempe AZ, 85281 Office: (480) 288-7512 Email: [email redacted] Licensed DATE: 8/30/2022 AGREEMENT# 22038 Customer Phone: 971-285-7811 Customer Email: [email redacted]

LNB ENTERPRISES (hereinafter referred to as Design Company) hereby agrees to sell and Jarod and Jennifer Eagles, (hereinafter referred to as Buyer) of 4407 S. Electron, Mesa, Arizona 85212, hereby agrees to purchase from the Design Company the following described goods and services:

Scope of Work:

1. 2. Complete site, plumbing, electrical and mechanical plans. 3. Work with HOA for approval.

Note: Being used as a man cave now but will convert to a guest house in the future.

Architectural Services

Phase One: Conceptual Design Drawings $Priced Per Hour billed against retainer Phase One Architectural services will include documentation of the existing site and residence and preparation of the following drawings for Owner design approval; these drawings can also be used to obtain preliminary contractor pricing:

Preliminary Site Plan Demolition Plan Floor Plan(s) Roof Plan Exterior Elevations Associate Designer: billed at $100.00 an hour Drafting: billed at $75.00 an hour

A site visit will be required to verify existing site condition and record approximate dimensions. Owner design approval will be obtained throughout the design process, and design review meetings can be scheduled if necessary. Upon acceptance of the conceptual design and a signed floor plan, site plan, and exterior elevations plan will close Phase one of this contract and signal the start of the additional phases listed below.

Phase Two: HOA Submittals/Design Review Boards of 5

Owner to provide Homeowner Association contact info (if applicable). Any additional submittals required for Homeowner Association review based on the scope of work listed in Phase One will be considered and additional service and billed at an hourly rate. The Hourly rate will be as follows: Associate Designer: billed at $100.00 an hour Drafting: billed at $75.00 an hour There may be other Reimbursable items billed out for these additional submittals such as: Colored Renderings Colored elevations Material sample boards 3d models electrical Scaled 3d models

Phase Three: Permit Set Drawings Priced per hour Phase three

Architectural services will include continued development of Phase one drawings as well as the following drawings and documentation necessary for submittal of a Permit set of documents approved for construction (includes only the engineering listed):

Final site plan Final demolition, floor, and roof plans Reflected ceiling plan Final exterior elevations Building sections Structural foundation plan, framing plan, details. o Structural Engineering billed as an estimated Square foot cost of project. Details and schedules. Other documentation as required. Associate Designer: billed at $100.00 an hour Drafting: billed at $75.00 an hour

Owner design approval will be obtained prior to building department submittal. Building department plan review and permit fees are not included in this proposal and will be considered a reimbursable expense to be paid by Owner. All drawings are produced in Auto CAD and provide to Owner in a PDF format at no extra cost. Other Provisions: Extent of mechanical, pluming, and electrical drawings included is limited to tying new work into the existing systems: if required, system upgrades will be considered an additional service by an engineer: Electrical Panel Upgrade (by an Electrical Engineer, estimated $900 900) Mechanical unit upsizing (by a Mechanical Engineer, estimated $800 1100) Plumbing system replacement (by a Plumbing Engineer, estimated $500 700)

Fees: The Fees listed above exclude reimbursable expenses, the fees of any engineers or consultants not included in the scope indicated and building department plan review and permit fees. Fees listed in this contract are Valid for thirty (30) days from the date of this proposal. of 5

Schedule: To be determined with Owner and Contractor Input. Typical Estimated Schedule is as follows: Phase 1: Conceptual Design 2 to 3 weeks from start date Phase 2: HOA Submittals varies based on each HOA Phase 3: Permit Set 3 to 4 weeks Building Department Plan Review Options: Over the counter review (if qualify for) 1 to 3 days Standard review 1st review 3 weeks (if needed) 2nd review 2 weeks All time frames above are based on business days only Due to Covid all Time frames are no longer Valid We are at the Mercy of the Individual Municipalities.

Reimbursable Expenses: Reimbursable expenses will be billed at cost plus 15% and may include, but not be limited to the following: Printing and reproduction costs Materials and supplies Plan review fees and permit fees Other fees paid on behalf of the Owner All municipal required engineering.

Additional Services: Any work beyond the scope indicated above or modifications to the signed owner approved conceptual floor plan will be considered an additional service and will be billed at an hourly rate of $100.00 an hour. These services may include, but not be limited to the following: Additional program or increased square footage Energy compliance calculations and reports Color or three-dimensional renderings Three-dimensional computer modeling Site planning and zoning issues (pre-existing) Zoning adjustments Material and sample boards Site surveying/civil engineering Structural engineering Landscape design Construction administration Geotechnical reports (soil studies)

Payment Terms: A retainer fee is due prior to the commencement of services for Phase One, Phase Two, and Phase Three of work, as listed in this contract. Invoicing will occur on either a biweekly or a monthly basis, with final payment due upon completion of the scope of services for each phase. The retainer will be credited to the final invoice. Payments are due within 7 days of the invoice date. Any account balance unpaid 30 days after the invoice date may be subject to a monthly service charge of 5% on the unpaid balance.

Price is good for 30 days from date of contract or bid.

Retainer due at Signing $ 3,000.00 of 5

BUYER If this agreement was solicited at your residence and you do not want the goods or services, you may cancel this agreement by mailing a notice to the Design Company. The notice must say that you do not want the goods or services and must be mailed before midnight on the third business day after the date of the transaction.

This contract is subject to all the terms and conditions set forth on the reverse side. Buyer acknowledges receipt of a completed copy of this contract, including NOTICE OF CANCELLATION form.

Signed this ___________________ day of ________________________ You, the Buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. witness____________________________________________________ See the attached notice of cancellation form for an explanation of this right. Accepted by the Design Company: ________________________________________________________ LNB Enterprises, LLC Signature of Buyer

By ________________________________________________________ ________________________________________________________ Signature of Buyer

ADDITIONAL TERMS AND PROVISIONS OF CONTRACT 1. Design company shall not be liable for delays caused by strikes, weather conditions, or delay in obtaining materials or causes beyond its control.

2. If there is more than one Buyer, they shall be jointly and severely liable hereon. This Contract shall bind Design Company and Buyer, their respective heirs, personal representative, successors and assigns.

3. This written Contract is the only and entire Contract covering the subject matter hereof. No person is authorized to vary or alter the terms and conditions of this contract. Buyer shall be solely responsible for providing verification of cash payments upon the request of Design Company.

4. After the expiration of the time of the BUYER cancelled by the Buyer, Buyer shall pay to Design Company, as liquidated damages and not as penalty, twenty-five (25%) of the Contract price at the sole option of the Design Company. Design Company may elect instead to pursue legal action to collect the entire amount of the purchase price stated in the contract.

5. If any provisions of this Contract are held invalid or unenforceable for any reason, no other provision shall be affected, and this Contract shall be construed as if such invalid or unenforceable provision had never been contained herein.

6. Work to be performed by a Licensed Design Company.

7. Payments can be accepted by Visa, Mastercard or Discover with an added convenience fee of 2.8%. Payments by American Express can be accepted with an added convenience fee of 2.8% plus the additional American Express fee. No exceptions.

8. Job prices are contingent upon continuous work, barring any act of God or delay by vendor. Any customer requested delay will result in an additional charge of $250/day until work is resumed.

9. Allowances may or may not be a part of this contract. Allowances function such that the stated dollar amount is the amount factored into the contract. If the Buyer does not utilize the full amount of the allowance, the difference will be refunded to the Buyer along with applicable taxes and markup. If the Buyer utilizes more than the allowance amount, the overage will be billed to the Buyer along with applicable taxes and markup. of 5

NOTICE OF LIMITED WARRANTY Design Company warrants that the materials used are of a quality specified and Buyer(s) acknowledges that all of the

Buyer(s) further acknowledge Design Company execution of this contract. Design Company further warrants labor for one year after date of substantial completion. Buyer exclusive remedy shall be the repair of any defects in labor and as a condition precedent Buyer(s) must notify Design Company in writing at Design Company Design Company makes no express warranties not set forth in writing herein and does not make any warranties as to the materials by the manufacturer.

NOTICE Any holder of this consumer contract is subject to all claims and defenses which could assert against the Design Company of goods or services obtained with the proceeds hereof. Recovery hereunder by the debtor shall not exceed amounts paid by the Debtor hereunder.

NOTICE OF CANCELLATION Oct 8, 2022 Date of transaction ____________________

You may cancel this transaction, without any penalty or obligation, within 3 business days from the above date.

If you cancel, any property traded in, any payments made by you under the contract of sale, and any negotiable instrument executed buy you will be returned within 10 business days following receipt by the Design Company of your cancelation notice, and any security interest arising out of the transaction will be cancelled. If you cancel, you must make available to Design Company at your residence, in substantially as good condition as when you received, any goods delivered to under this contract or sale or you may, if you wish, comply with the instructions of the Design Company regarding the return shipment of goods at the Design Company

If you do not make the goods available to the Design Company and the Design Company does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make goods available to the Design Company, or if you agree to return the goods to the Design Company and fail to do so, then you remain liable for performances of all obligations under contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice to LNB ENTERPRISES, INC. P.O. Box 50962, Mesa, AZ 85208, no later than midnight (Date) ____________________

I hereby cancel this transaction

________________________________________________ ________________________________________________________ Date Signature Received 12/19/2023 ROC Legal

12-19-2023 To AZROC Attention: “Written Answer to Citation and Complaint” Case N. 2023-12393

FROM: Lyle Nils Bjelde Bjelde Construction, LLC.

To whom it may concern, 1. Owner was unhappy how long it took to get permit, 2. With the delayed time in getting the permit, and telling the owner we couldn’t start immediately after pulling the permit, the owner hired another contractor to start work on the project. He did not cancel the contract. When the complaint was submitted, I went to the site and met with the owner. He suggested that there shouldn’t be an inspection at that time. I agreed.

On that day, I saw that the new contractor had already: 1. Laid out the foundation for digging. 2. Laid out the underground Plumbing for digging. 3. Dug for proposed sewer connection @ the front of residence. Received 12/19/2023 ROC Legal

The owner stated that he couldn’t wait and that the new contractor he hired said he could finish the project in 60 days. I told him I would reach out to the inspector, Albert Brunell, and let him know that I would not be able to make the job site inspection date. I reached out in an email to Albert, the investigator prior to the 36-hour notice and told him I would not be there. He responded back. I believe the site inspection was done as per the original date.

I could not work on the project as the owner had someone else already doing the work.

Thanks Lyle Nils Bjelde Bjelde Construction, LLC Received 12/20/23, 7:59 AM State of Arizona Mail - Response to Citation ROC 2023-12393 12/19/2023 ROC Legal

Answers - AZROC <[email redacted]>

Response to Citation ROC 2023-12393 message

Nils Bjelde <[email redacted]> Tue, Dec 19, 2023 at 1:20 PM To: "[email redacted]" <[email redacted]> Cc: Nils Bjelde <[email redacted]>, Ed Scheidell <[email redacted]>, Melissa <[email redacted]>

To whom it may concern,

Please see the attached response provided.

Thank you, Nils

Eagles ROC 2023-12393.docx 33K

https://mail.google.com/mail/b/AEoRXRR8-3dvjVUR2-eOi8lJ23sLRvJMCOcGGtaCxIgT-Twq2Eaa/u/0/?ik=581c53cf5c&view=pt&search=all&permthid… 1/1 11/15/23, 2:01 PM State of Arizona Mail - 2023-12393

Lazaro Bernal <[email redacted]>

2023-12393 message

Nils Bjelde <[email redacted]> Tue, Nov 14, 2023 at 4:09 PM To: "[email redacted]" <[email redacted]> Cc: Nils Bjelde <[email redacted]>, Melissa <[email redacted]>, "[email redacted]" <[email redacted]>

Mr. Burney, I will not be able to be at the site meeting on Friday, 17 November, at 9:30 am. Just letting you know that today the 14th at 4 o'clock Arizona time.

Please let me know if we are extending this out to another day or canceling or other.

I met with Jared Eagle last night at the residence and he is already dug for his connection for sewer and he mentioned that he had hired another contractor to start digging the footings today.(New contractor to do project).

As of yesterday there was a 12 inch ditch to be inspected in the front of the house.

I believe Jarred has reached out to you to let you know that there may not be anything for you to inspect now. Please

Thanks, Nils BJELDE BJELDE Construction, Llc. 602-757-4994

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https://mail.google.com/mail/u/0/?ik=20fc683d77&view=pt&search=all&permthid=thread-f:[number redacted]%7Cmsg-f:[number redacted]… 1/1 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