ALJDEC - Licensing

2023A-14078-CHC-ROC · Registrar of Contractors · 2024-06-06

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

Vince Stark/Stark CBC, Inc.,

COMPLAINANT,

v.

4 Daughters Electric, LLC

License No. ROC 323958,

RESPONDENT.

No. 2023A-14078-CHC-ROC

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: May 24, 2024

APPEARANCES: Complainant Vince Stark appeared on his own behalf and on behalf of Stark CBC, Inc. Respondent 4 Daughters Electric, LLC failed to appear. Arizona Registrar of Contractors Investigator Albert Bernal appeared as a witness.

ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella

EXHIBITS ADMITTED INTO EVIDENCE: None; Administrative Notice taken of Agency Record

FINDINGS OF FACT

4 Daughters Electric, LLC (“Respondent”) is the holder of License Number 323958 issued by the Arizona Registrar of Contractors (“Registrar”).

In or about January 2023, Vince Stark, on behalf of Stark CBC, Inc. (“Complainant”) contracted with Respondent for Respondent to perform the electrical work, including rough, trim, service, and lighting, for the Gold Canyon Business Center. The contracted work encompassed two commercial buildings. The contract price was $113,986.00.

On or about December 11, 2023, the Registrar received a Complaint against Respondent from Complainant alleging abandonment of the project.

The Registrar assigned the Complaint to Investigator Albert Bernal. After a January 23, 2024 Jobsite Inspection, at which both parties were present, Investigator Bernal issued a Written Directive to Respondent dated January 30, 2024, that provided as follows:

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 14th, 2024.

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

Complaint Item: 1 - Provide and Install Main Feeder wires from SES panel to Building A

Investigator’s Observation: Verified. It was stated by both parties that the main feeder wires from the SES panel to building A were not installed.

Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work.

Complaint Item: 2 - Provide and Install Main Feeder wires from SES panel to Building B

Investigator’s Observation: Verified. It was stated by both parties that the main feeder wires from the SES panel to building B were not installed.

Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work.

Complaint Item: 3 - Provide and Install Timer control and wiring to Timer

Building A

Investigator’s Observation: Verified. Timer control for building A was not installed. Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work.

Complaint Item: 7 - Complete conduits, install junction boxes and pull wires for Electric Vehicle Charging Station Building A

Investigator’s Observation: Verified. I noted that the quick disconnect switch was installed on building A, and it appears the Complainant installed the underground conduit for this service, however, the electrical components listed in this complaint item were not installed.

Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work.

Complaint Item: 8 - Complete conduits, Install junction boxes and pull wires for Electric Vehicle Charging Station Building B

Investigator’s Observation: Verified. I noted that the quick disconnect switch was installed on building B, and it appears the Complainant installed the underground conduit for this service, however, the electrical components listed in this complaint item were not installed.

Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work.

Complaint Item: 9 - Provide wiring and circuit disconnects and connect 2 rooftop HVAC’s Building A

Investigator’s Observation: Wiring and circuit disconnects to HVAC system for building A were not installed.

Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work

Complaint Item: 10 - Provide wiring and circuit disconnects and connect 2 rooftop HVAC’s Building B

Investigator’s Observation: Wiring and circuit disconnects to HVAC system for building A were not installed.

Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work

Complaint Item: 11 - Provide conduit, wire and circuit breakers for 4 Parking Lot lights

Investigator’s Observation: Verified. Install breakers and necessary electrical components to complete parking lot lights.

Respondent shall complete project per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work.

Complaint Item: 12 - Provide and Install 4 Parking Lot lights and mounting brackets

Investigator’s Observation: Verified. I noted that the parking lot lights were not installed. Conduit for these lights was not installed at the time of this JSI. It appears the Complainant is to provide trenching and underground conduit for this portion of the work.

Respondent shall installed the parking lot lights as per original contract agreement, properly executed change orders, verbal agreements, and local building codes and manufacturers installation instructions.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work.

Complaint Item: 13 - Provide conduit and wiring to site mounted sign

Investigator’s Observation: Verified. Wiring and conduit to site sign were not installed at the time of this jobsite inspection.

Respondent shall installed the wiring and necessary components for the site sign as per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work

Complaint Item: 14 - Extend (2) low voltage pipes to utility pole

Investigator’s Observation: Verified. Low voltage pipes for cable and phone were not installed at the time of this jobsite inspection.

Respondent shall installed the low voltage pipe as per original contract agreement, properly executed change orders, verbal agreements, and local building codes.

*The Respondent will need to correct this issue by the appropriate means. Since the Respondent is not appropriately licensed to do this work, the appropriate means will be the two parties coming to a resolution to have an appropriately licensed contractor complete the corrective work.

ITEMS NOT REQUIRING CORRECTION

The following complaint items require no action by the Respondent:

Complaint Item: 4 - Complete SRP inspection list for Main Gear Box.

Investigator’s Observation: No additional list of item were provided to the

ROC at the time of this jobsite inspection.

No evidence to prove or verify complaint item constitutes poor work due to the complaint work being incomplete.

Complaint Item: 5 - Complete Pinal County requirements for Building A breaker panels

Investigator’s Observation: No additional list of item were provided to the

ROC at the time of this jobsite inspection.

No evidence to prove or verify complaint item constitutes poor work due to the complaint work being incomplete.

Complaint Item:6 - Complete Pinal County requirements for Building B breaker panels

Investigator’s Observation: No additional list of item were provided to the

ROC at the time of this jobsite inspection.

No evidence to prove or verify complaint item constitutes poor work due to the complaint work being incomplete.

Complaint Item: 15 - Test entire electrical systems prior to County and SRP inspections

Investigator’s Observation: Work was incomplete at the time of this jobsite inspection. System test shall be executed when project is complete.

Unable to verify, no evidence to prove or verify complaint item constitutes poor work due to the complaint item being incomplete.

Complaint Item: 16 - Correct any additional inspection items found by County

Investigator’s Observation: No additional items were provided to the ROC. Work was incomplete at the time of this jobsite inspection.

Unable to verify, no evidence to prove or verify complaint item constitutes poor work due to the complaint item being incomplete

All errors in original.

Investigator Bernal issued two Warning Letters to Respondent, the first of which advised that Respondent operated beyond the scope of its R-11 Electrical license. The second Warning Letter advised Respondent that its contract documents were missing at least one of the statutorily required elements of a contract.

Following the expiration of the Written Directive, Complainant emailed Investigator Bernal informing him that Respondent had not complied with the Written Directive.

Thereafter, Investigator Bernal forwarded the matter to the Registrar’s Legal Department. The Registrar issued a Citation against Respondent charging possible violations of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(a), A.R.S. § 32-1154(A)(16), and A.R.S. § 32-1154(A)(22). Respondent filed a timely Answer to the Citation.

The Registrar referred the matter to the Office of Administrative Hearings, an independent State agency, for an evidentiary hearing.

The hearing was scheduled to convene on May 24, 2024, at 1:00 p.m., pursuant to the Notice of Hearing issued by the Registrar on April 4, 2024. On April 26, 2024, the Tribunal issued to the parties an Order Setting Hearing Via Google Meet. That Order contained the Google Meet link to join the hearing by video or by telephone. It was issued to Respondent’s email address of record.

On the date and at the time set for hearing, Mr. Stark appeared on his own behalf and on behalf of Stark CBC, Inc. Investigator Bernal appeared as a witness. Respondent did not appear through an authorized member, employee, or attorney. Respondent did not request that the hearing be continued. Because Respondent failed to appear, Respondent did not present any evidence to defend its license.

Investigator Bernal testified consistently with his findings contained in the Written Directive.

Mr. Stark testified that he concurred with Investigator Bernal’s testimony. Mr. Stark testified that he has paid both Respondent and Respondent’s vendors, with Respondent’s approval, a total of $97,884.38 of the contract amount.

Administrative notice is taken of Respondent’s prior License record on June 6, 2024. Such prior License record reflects that Respondent’s License Number 323958, a Specialty Residential R-11 Electrical license, was first issued on March 29, 2019, and is expired as of April 1, 2024. Such prior License record also reflects that there is only the instant open complaint, no resolved/settled complaints, and one complaint resulting in discipline against Respondent’s license.

CONCLUSIONS OF LAW

This matter lies within the Registrar’s jurisdiction.

Pursuant to A.R.S. § 32-1154(D), “[t]he expiration, cancellation, suspension or revocation of a license by operation of law or by decision and order of the registrar or a court of law or the voluntary surrender of a license by a licensee does not deprive the registrar of jurisdiction to proceed with any investigation of or action or disciplinary proceeding against such a licensee, or to render a decision suspending or revoking such a license, or denying the renewal or right of renewal of such a license.”

Complainant bears the burden of proof to establish Respondent’s statutory violations by a preponderance of the evidence. “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.”

The evidence established that Respondent’s work was not in conformity with the Registrar’s standards. Therefore, Complainant established that Respondent did not complete the project in a professional and workmanlike manner in violation of A.R.S. § 32-1154(A)(3), namely A.A.C. R4-9-108(a).

The evidence established that Respondent contracted to perform and actually performed some of the electrical work for a commercial project, knowing that it held a residential electrical license. Therefore, Complainant established that Respondent knowingly contracted beyond the scope of its license in violation of A.R.S. § 32-1154(A)(16).

The evidence established that Respondent did not comply with the Written Directive and that there was no valid justification for such noncompliance. Therefore, Complainant established that Respondent failed to take appropriate corrective action following a Written Directive from the Registrar in violation of A.R.S. § 32-1154(A)(22).

RECOMMENDED ORDER

Based on the foregoing, it is recommended that on the effective date of the Order, the Registrar shall suspend Respondent’s License Number 323958 for a period of ten (10) days.

It is further recommended that the Registrar require Respondent to pay the sum of $500.00 as a civil penalty pursuant to A.R.S. § 32-1154(E).

It is further recommended that if Respondent fails to pay the entire amount of the civil penalty on or before thirty (30) days following the effective date of the Registrar’s final order, the Registrar revoke Respondent’s license, effective on such deadline date. No future license shall be issued to any entity consisting of persons associated with Respondent, as defined in A.R.S. § 32-1101(A)(7), unless Respondent tenders payment of any outstanding prior civil penalty.

Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be forty (40) days from the date of that certification.

Done this day, June 6, 2024.

/s/ Sondra J. Vanella

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile to:

Tom Cole, Director

Registrar of Contractors

Vince Stark/Stark CBC, Inc.

[email redacted]

4 Daughters Electric, LLC

[email redacted]

Albert Bernal

[email redacted]

By: OAH Staff