2023A-13411-CHC-ROC Notice of Hearing and Packet MAILED

2023A-13411-CHC-ROC · Registrar of Contractors · 2024-04-01

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Jonathan I Stewart , Case No. 2023-13411 COMPLAINANT, Docket No. 2023A-13411-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE Ugly Pools Arizona Inc DBA: We Fix Ugly Pools License No. ROC 275609,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

May 14, 2024 1:00 PM Jenna Clark Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will

be held at 1740 W Adams Street, Phoenix, AZ 85007.

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

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors

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

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

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

The statutes and rules governing the hearing can be found at: Arizona Revised Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122. PARTICULAR ARIZONA STATUTES AND RULES INVOLVED The statutes and rules the Respondent is alleged to have violated are cited in the complaint and citation, which were served on the Respondent on February 28, 2024.

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 April 2, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail April 2, 2024 to: Respondent(s) Ugly Pools Arizona Inc DBA: We Fix Ugly Pools, 7558 W Thunderbird Rd # 1-621 Peoria, AZ 85381 Jason M. Venditti, Esq. 20860 N Tatum Blvd Ste 300 Phoenix, AZ 85050

Complainant(s) Jonathan I Stewart 6632 N 128th Ln Glendale, AZ 85307

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

Case No. 2023-13411 /

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

Jobsite Inspection Notes

Case No.: 2023-13411 Investigator: John Peru Inspection Date: December 19, 2023 Inspection Time: 09:30 AM

Complainant: Jonathan I Stewart Respondent: Ugly Pools Arizona Present: Jonathan I Stewart Inc Present: Matt B. Phelps

Jobsite General Notes:

Photos were taken with my agency issue Google Cell Phone. Audio was recorded with my Agency Issue Olympus DM-720. Photos and recordings have been uploaded into the case file.

On 12/19/2023, at approximately 0930 hours, I conducted a Jobsite Inspection at the Home of Jonathan Stewart per his complaint against Ugly Pools Arizona, Inc. The Complainant was present for this Inspection. The Respondent was present for this Inspection.

The nature of this complaint is in regards to construction of a New In-Ground Swimming Pool; specifically, the Financial, Contractual, and Workmanship disputes per contract.

Complaint Item: 1 - "1.The Initial Contract contained errors in excess of 45K

2.The revised contract contained several allowance in which the contractor subs made unauthorized

3.Ugly Pools has failed to provide Allowance True-up using as fee enhancement

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

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

4. Finalized contract quantities were incorrect and Contractor, refused to negotiate {Ugly Pools Error).

9. Quantities for Cool Decking was incorrect; Refused to do the existing Patio; claim was not in contract. Investigator’s Observation: At the time of this Inspection, The both parties acknowledged that these Complaint Items were Financial/Contractual Disputes, and that the ROC does not have jurisdiction per disputes. Governing Rule: N/A

Complaint Item: 2 - "5.Damaged Stucco on home refused to fix; Fogged the entire West Elevation

6. Item Number 5 could have been avoided insufficient masking communicated and ignored.

19. Damaged New Stamped Concrete with Pump used to Acid Wash Pebble Tee Pool Surface." Investigator’s Observation: At the time of this Inspection, The Complainant stated that he has corrected these Complaint Items per Third Party. Under; A.R.S. § 32-1155(D)(2).(modification), The ROC cannot substantiate these allegations, and cannot direct the Respondent per correction by appropriate means . Governing Rule: N/A

Complaint Item: 3 - "7.Slurry on the complete block privacy wall refused to repair." Investigator’s Observation: At the time of this Inspection, There were areas that exhibited efflorescence or some other reaction within the inherent characteristics of the Masonry Block throughout the perimeter of the Privacy Block Fence. Both parties stated that the Respondent has made initial attempts via power 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

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washing, as well as the Complainant making attempts to remove the residue. Both parties stated that the majority of these areas were existing, and not specifically within the immediate area of the Pool Project. Additionally, both parties pointed out that there were other adjacent properties that exhibited the same "efflorescence /residue," within their prospective perimeter fences. Due to the multiple areas that contained the efflorescence /residue, this may be a result of some inherent characteristics of the product material, and not just specifically limited to the Respondent's work. Therefore, the findings for this allegation cannot be placed solely on the Respondent's Workmanship. REF:(P)4 through (P)8. Governing Rule: N/A

Complaint Item: 4 - "8. Failed to install salt cell (6 weeks and counting from the Cool Deck Installation).

10. Failed to install Pool Heads." Investigator’s Observation: At the time of this Inspection, both parties stated that these Complaint Items have been corrected by the Respondent. Governing Rule: N/A

Complaint Item: 5 - "11.Failed to Turn over the Pool; No instructions or Training (All Ad Hoc).

12. Failed to Manage Subcontract; Complete Burden on myself.

14. Lack any responsiveness; I have called in excess of 18 times over the last month. No return calls.

16. Worst Experience ever to-date and I am in Construction for over 30 years as an Executive." Investigator’s Observation: The ROC does not have jurisdiction in the day to day operations / practices of the Respondent's Business Etiquette. 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

Complaint Item: 6 - "15. Installed Table Incorrectly, not per Plan; Accepted under Duress indicated it would be 2 mth delay.

17. Missing Basketball and Volley Ball Sleeves.

18. Missing 2nd Umbrella Sleeve on Baja Shelf.

20. Missing multiple sleeves: Basketball and on Baja Shelf." Investigator’s Observation: At the time of this Inspection, both parties stated that these Complaint Items were agreed to/signed off on per Field Changes within the Scope of the Project Contract. The Complainant expressed his dissatisfaction in regards to feeling pressured into/ or accepting these adjustments. The Complainant stated that there were additional monetary allowances per contract that were not utilized within this project. I stated that the ROC does not have jurisdiction in the Financial Disputes per Contract, as the Complainant has signed off on these changes. Governing Rule: N/A

Complaint Item: 7 - "13. Failed to Repaint Block Wall that was removed for Access due the insufficient equipment." Investigator’s Observation: At the time of this Inspection, both parties stated that the existing Side Entry Gate to the Rear yard needed to be temporarily removed for access to the project. The Respondent has restored the Side Entry Gate to its operational status. The Complainant stated that the new restored block should be painted to match the existing Privacy Block Fence. The Complainant has signed off on the Contract to accept the present condition, and per contract, the Respondent is not liable for matching the existing Block Fence; (#13, page 13 of 24 Contract). REF:(P)8. 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

Jobsite Inspection Notes

Case No.: 2023-13411 Investigator: John Peru Inspection Date: January 22, 2024 Inspection Time: 09:30 AM

Complainant: Jonathan I Stewart Respondent: Ugly Pools Arizona Present: Jonathan I Stewart Inc Not Present:

Jobsite General Notes: Photos were taken with my agency issue Google Cell Phone. Audio was recorded with my agency issue Olympus DM-720. Photos and recordings have been uploaded into the case file.

On 01/22/2024, at approximately 0930 hours, I conducted a Jobsite Inspection at the Home of Jonathan I Stewart per his complaint against Ugly Pools Arizona Inc. The Complainant was present for this Inspection. The Respondent was NOT present for this Inspection.

The nature of this complaint is in regards to construction of a New Swimming Pool; specifically, the Contractual Disputes and Workmanship disputes per contract.

Complaint Item: 1 - "(1). “Failed to install salt cell (6 weeks and counting from the Cool Deck Installation).” Need the updated status; functioning/programming." Investigator’s Observation: At the time of this Inspection, the Complainant stated that this has been completed. 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

Complaint Item: 2 - (2).” Slurry on the complete block privacy wall refused to repair.” Investigator’s Observation: Verified. At the time of this Inspection, there is slurry stained onto some of the lower extremities of the Block Fence at the perimeter, where the Pool Construction took place. Both parties acknowledged this Item of Concern, and the Respondent acknowledged making previous attempts at cleaning up the Slurry Stains. There are still Slurry Stains on the Block Fence. REF :( JSI PICS). Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

Complaint Item: 3 - "(3).” Failed to Repaint Block Wall that was removed for Access due the insufficient equipment.” Investigator’s Observation: At the time of this Inspection; The Contractual Dispute was under review for further interpretation of: #13 (Customer Protection Disclosure) per contract; “. When Ugly Pools Arizona, Inc. is contracted for removal and/or replacement of a block fence, the mortar and materials used when erecting the block fence may not match the existing block because of changes in the mortar and materials by the manufacturer. Further, if a fence is made of prefabricated panels, Ugly Pools Arizona, Inc. will assume no liability for any damages as a result of removal or replacement of such panels if those panels are damaged. As per #13 on the Original Contract that was signed by the Complainant, there is no clear language specifying "Paint Matching to the existing Block Fence," therefore, this allegation cannot be substantiated. 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

Complainant: Jonathan I Stewart 6632 N 128th Ln Glendale, AZ 85307

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: Ugly Pools Arizona Inc DBA: We Fix Ugly Pools 7558 W Thunderbird Rd # 1-621 Peoria, AZ 85381

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 January 9, 2024

Jobsite Inspection Notice Re: Complaint Number 2023-13411 (Reopened) Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for January 22, 2024 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. If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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, John Peru John Peru, Investigator #224 602 7716743 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

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. 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.

Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Complainant: Jonathan I Stewart 6632 N 128th Ln Glendale, AZ 85307

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: Ugly Pools Arizona Inc DBA: We Fix Ugly Pools 7558 W Thunderbird Rd # 1-621 Peoria, AZ 85381

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 December 1, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-13411

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for December 19, 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.

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, John Peru John Peru, Investigator #224 602 7716743 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

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

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.

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.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Complainant: Jonathan I Stewart 6632 N 128th Ln Glendale, AZ 85307

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: Ugly Pools Arizona Inc DBA: We Fix Ugly Pools 7558 W Thunderbird Rd # 1-621 Peoria, AZ 85381

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 January 23, 2024

License No. ROC 275609

Re:Complaint No. 2023-13411

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 February 13, 2024.

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 reasons 1, 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: 2 - (2).” Slurry on the complete block privacy wall refused to repair.” Investigator’s Observation: Verified. At the time of this Inspection, there is slurry stained onto some of the lower extremities of the Block Fence at the perimeter, where the Pool Construction took place. Both parties acknowledged this Item of Concern, and the Respondent acknowledged making previous attempts at cleaning up the Slurry

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 Stains. There are still Slurry Stains on the Block Fence. REF:(JSI PICS). Governing Rule: Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner.

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

Compliance Item: 1 - "(1). “Failed to install salt cell (6 weeks and counting from the Cool Deck Installation).” Need the updated status; functioning/programming." Investigator’s Observation: At the time of this Inspection, the Complainant stated that this has been completed. Governing Rule: N/A

Compliance Item: 3 - "(3).” Failed to Repaint Block Wall that was removed for Access due the insufficient equipment.” Investigator’s Observation: At the time of this Inspection; The Contractual Dispute was under review for further interpretation of: #13 (Customer Protection Disclosure) per contract; “. When Ugly Pools Arizona, Inc. is contracted for removal and/or replacement of a block fence, the mortar and materials used when erecting the block fence may not match the existing block because of changes in the mortar and materials by the manufacturer. Further, if a fence is made of prefabricated panels, Ugly Pools Arizona, Inc. will assume no liability for any damages as a result of removal or replacement of such panels if those panels are damaged. As per #13 on the Original Contract that was signed by the Complainant, there is no clear language specifying "Paint Matching to the existing Block Fence," therefore, this allegation cannot be substantiated. 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 Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

John Peru John Peru, Investigator #224 602 7716743 [email redacted] 1700 W Washington St, Suite 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 2023-13411 JSI Property 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours 2023-13411 JSI Pool 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours (P)1 2023-13411 JSI Pool 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours (P)2 2023-13411 JSI Pool Table 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours (P)3 2023-13411 JSI Perimeter Block Fence 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours (P)4 2023-13411 JSI Perimeter Block Fence 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours (P)5 2023-13411 JSI Perimeter Block Fence Existing Efflorescence 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours (P)6 2023-13411 JSI Perimeter Block Fence Existing Efflorescence 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours (P)7 2023-13411 JSI Perimeter Block Fence Gate Repair unfinished. 6632 N 128th Ln, Glendale, AZ 85307 12/19/2023 @ approximately 0930 hours (P)8 2023-13411 Property JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. 2023-13411 Unpainted New Block Fence Columns JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. (P)1 2023-13411 Slurry Stains on Block Fence JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. (P)2 2023-13411 Slurry Stains on Block Fence JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. (P)3 2023-13411 Slurry Stains on Block Fence JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. (P)4 2023-13411 Slurry Stains on Block Fence JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. (P)5 2023-13411 Slurry Stains on Block Fence JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. (P)6 2023-13411 Slurry Stains on Block Fence JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. (P)7 2023-13411 Slurry Stains on Block Fence JSI 6632 N 128th Ln, Glendale, AZ 85307 01/22/2024 @ approximately 0930 hours. (P)8 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