2024A-04225-CHC-ROC Notice of Hearing & Packet MAILED 2024-04225.pdf

2024A-04225-CHC-ROC · Registrar of Contractors · 2024-06-10

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Geoffrey Spalt , Case No. 2024-04225 COMPLAINANT, Docket No. 2024A-04225-CHC-ROC v. NOTICE OF HEARING ON Pleasure Spas Inc. CONTESTED CASE DBA: Pleasure Pools License No. ROC 166025,

Pleasure Spas Inc. DBA: Pleasure Homes License No. ROC 201430,

RESPONDENT.

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

HEARING INFORMATION The hearing is set for:

July 25, 2024 9:00 AM Kay Abramsohn 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 May 10, 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)(3) - R4-9-108(b) Charge: 3 A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1124(B) Charge: 4 A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1158 Charge: 5 A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1158.01 Charge: 6 A.R.S. § 32-1154(A)(14)

Charge: 7 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 June 10, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail June 10, 2024 to:

Respondent(s) Pleasure Spas Inc. DBA: Pleasure Pools, Pleasure Homes 2004 E Irvington Rd #186 Tucson, AZ 85714 Complainant(s) Geoffrey Spalt 1002 N Daliann Place Tucson, AZ 85748

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. 2024-04225 /

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: Geoffrey Spalt 1002 N Daliann Place Tucson, AZ 85748

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 Respondent: Pleasure Spas Inc DBA: Pleasure Pools 2004 E Irvington Rd #186 Tucson, AZ 85714

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 April 16, 2024

Re: Complaint No. 2024-04225

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for Wednesday, April 17, 2024 at 08:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

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

RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection. If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 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 Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 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.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 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 12/23 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

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 12/23 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 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 12/23 Complainant: Geoffrey Spalt 1002 N Daliann Place Tucson, AZ 85748

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Respondent: Pleasure Spas Inc DBA: Pleasure Pools 2004 E Irvington Rd #186 Tucson, AZ 85714

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 April 17, 2024

License No. ROC 166025

Re: Complaint No. 2024-04225

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 Friday, May 3, 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 reasons1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS You are directed to complete work per contract, and to remedy the following violations by the appropriate means:

Complaint Item 1: “The project has already exceeded 13 months in duration and I received an email on 04/07/24 that the work has halted due to the contractor receiving a UCC lien against their bank accounts due to lack of cash flow.” Investigator’s Observations: Verified.

Contract date • 2/26/2023 Total price specified in the contract: • $14,992.07 As stated in an email from the respondent to the complainant:

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 12/23 • Total amount paid to date is $14,000 As stated in the submitted complaint: • Work stopped on 3/11/2024 As stated in the contract, the next payment is not due until completion of the project.

Current conditions on site: • The project is not complete • Equipment is not installed or on site

Emails from the respondent to the complainant (submitted with the complaint): • Acknowledge the project is not complete • Acknowledge the respondent is not currently capable of completing the project.

Governing Rule: A.R.S. § 32-1154 (A)(3) - R4-9-108(a): Violation of any rule adopted by the registrar; Namely R 4-9-108(a) A contractor shall perform work in a professional and workmanlike manner. Governing Rule: A.R.S. § 32-1154(A)(3) – R4-9-108(b): Violation of any rule adopted by the registrar; Namely R 4-9-108(b): A contractor shall perform work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity.

Complaint Item 2: “Work has been slow to progress and has now been halted due to contractor insufficient funds.” Investigator’s Observations: Verified.

Contract date • 2/26/2023 Total price specified in the contract: • $14,992.07 As stated in an email from the respondent to the complainant: • Total amount paid to date is $14,000 As stated in the submitted complaint: • Work stopped on 3/11/2024 As stated in the contract, the next payment is not due until completion of the project.

Current conditions on site: • The project is not complete • Equipment is not installed or on site

Emails from the respondent to the complainant (submitted with the complaint): • Acknowledge the project is not complete

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 • Acknowledge the respondent is not currently capable of completing the project.

ADDITIONAL VIOLATIONS In addition to the allegations in the complaint, the following violations were verified:

Elements of a Contract Investigator’s Observations: The respondent’s contract is missing the following information: • The correct name of the contractor o The respondent’s registered business name is “Pleasure Spas Inc DBA Pleasure Pools” o The respondent Contract is displaying their company name as “Fiberglass Pools of Arizona” • An estimated date of completion • Information about the customer’s right to file a complaint with the registrar • Contact information for the registrar Governing Rule: A.R.S. § 32-1154(A)(12), Namely A.R.S. § 32-1158(A) Minimum Elements of a Contract. Any contract in an amount of more than one thousand dollars entered into between a contractor and the owner of a property to be improved shall contain in writing at least the following information: 1: The name of the contractor and the contractor's business address and license number. 2: The name and mailing address of the owner and the jobsite address or legal description. 3: The date the parties entered into the contract. 4: The estimated date of completion of all work to be performed under the contract. 5: A description of the work to be performed under the contract. 6: The total dollar amount to be paid to the contractor by the owner for all work to be performed under the contract, including all applicable taxes. 7: The dollar amount of any advance deposit paid or scheduled to be paid to the contractor by the owner. 8: The dollar amount of any progress payment and the stage of construction at which the contractor will be entitled to collect progress payments during the course of construction under the contract. 9a: That the property owner has the right to file a written complaint with the registrar for an alleged violation of section 32-1154, subsection A. 9b: The contract shall contain the registrar’s telephone number and website address and shall state that complaints must be made within the applicable time period as set forth in section 32-1162, subsection

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 A. 9c: The information in this paragraph must be prominently displayed in the contract in at least ten- point bold type… 9d: …and the contract shall be signed by the property owner and the contractor or the contractor’s designated representative. This paragraph does not apply to a person who is subject to and complies with section 12-1365. REQUIRED CORRECTIVE ACTION: The respondent is to submit a copy of a current contract form that complies with A.R.S. § 32-1158

Pool Contract Investigator’s Observations: The contract does not include Provisions 1, 3, and 4 of A.R.S. § 32-1158.01. The payment schedule is not in compliance with Provision 2 of A.R.S. § 32-1158.01. • Payments as per provision 2: o 15% maximum down payment o 25% maximum payment after completion of excavation o 25% maximum payment after completion of steel, plumbing, and concrete o 25% maximum payment after completion of decking o Payment of remaining funds before finishing interior materials or completion • Payments as stated in the respondent’s contract: o $5,000.00 when excavation is performed (equal to 33.35%) o 8,000.00 upon completion of spa plumbing rough in (equal to 53.36%) o Balance due upon completion Governing Rule: A.R.S. § 32-1154(A)(12) Namely A.R.S. § 32-1158.01 Swimming pool; spa; construction contracts REQUIRED CORRECTIVE ACTION: The respondent is to submit a contract form that complies with A.R.S. § 32-1158 and § 32-1158.01

Display of License Investigator’s Observations: The respondent’s Estimate does not include the respondent’s ROC number. Governing Rule: A.R.S. § 32-1154(A)(12) Namely A.R.S. § 32-1124(B) Display of License REQUIRED CORRECTIVE ACTION: The respondent is to submit documented compliance with A.R.S. § 32- 1124

Wrong name Investigator’s Observations: The respondent’s registered business name is “Pleasure Spas Inc DBA Pleasure Pools” The respondent Estimate and Contract are displaying their company name as “Fiberglass Pools of Arizona” One of the respondent’s Payment Receipt is displaying the name as “Pleasure Pools Spas & Landscaping” One of the respondent’s Payment Receipt is displaying the name as “Pleasure Pools” Governing Rule: A.R.S. § 32-1154(A)(14): Acting in the capacity of a contractor under any license issued under this chapter in a name other than as set forth on the license. REQUIRED CORRECTIVE ACTION: The respondent is to submit documented compliance.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

John Smith, Investigator #194 (520) 483-0027 [email redacted] 1700 W Washington St,Suite 105 Phoenix, Arizona 85007-2812

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 12/23 Arizona Registrar of Contractors Jobsite Inspection Notes Complaint No.: 2024-04225 Investigator: John Smith #194 Inspection Date: 4/17/2024 Inspection Time: 8:00AM Jobsite address: 1002 N. Daliann Pl., Tucson, AZ 85748

Complainant: Geoffrey Chad Spalt Respondent: Pleasure Spas Inc DBA Pleasure Pools

Present for the complainant: Geoffrey Spalt Present for the respondent: The respondent was not present.

(Complaint Items) Complaint Item 1: “The project has already exceeded 13 months in duration and I received an email on 04/07/24 that the work has halted due to the contractor receiving a UCC lien against their bank accounts due to lack of cash flow.” Investigator’s Observations: Verified.

Current conditions on site: • The project is not complete • Equipment is not installed or on site

(Allegations) RCC100

Arizona Registrar of Contractors Jobsite Inspection Notes Complaint Item 2: “Work has been slow to progress and has now been halted due to contractor insufficient funds.” Investigator’s Observations: Verified.

Current conditions on site: • The project is not complete • Equipment is not installed or on site

ADDITIONAL VIOLATIONS In addition to the allegations in the complaint, the following violations were verified:

Arizona Registrar of Contractors Jobsite Inspection Notes 1: The name of the contractor and the contractor's business address and license number. 2: The name and mailing address of the owner and the jobsite address or legal description. 3: The date the parties entered into the contract. 4: The estimated date of completion of all work to be performed under the contract. 5: A description of the work to be performed under the contract. 6: The total dollar amount to be paid to the contractor by the owner for all work to be performed under the contract, including all applicable taxes. 7: The dollar amount of any advance deposit paid or scheduled to be paid to the contractor by the owner. 8: The dollar amount of any progress payment and the stage of construction at which the contractor will be entitled to collect progress payments during the course of construction under the contract. 9a: That the property owner has the right to file a written complaint with the registrar for an alleged violation of section 32-1154, subsection A. 9b: The contract shall contain the registrar’s telephone number and website address and shall state that complaints must be made within the applicable time period as set forth in section 32-1162, subsection A. 9c: The information in this paragraph must be prominently displayed in the contract in at least ten- point bold type… 9d: …and the contract shall be signed by the property owner and the contractor or the contractor’s designated representative. This paragraph does not apply to a person who is subject to and complies with section 12-1365. REQUIRED CORRECTIVE ACTION: The respondent is to submit a copy of a current contract form that complies with A.R.S. § 32-1158

RCC100 11/14

Arizona Registrar of Contractors Jobsite Inspection Notes Wrong name Investigator’s Observations: The respondent’s registered business name is “Pleasure Spas Inc DBA Pleasure Pools” The respondent Estimate and Contract are displaying their company name as “Fiberglass Pools of Arizona” One of the respondent’s Payment Receipt is displaying the name as “Pleasure Pools Spas & Landscaping” One of the respondent’s Payment Receipt is displaying the name as “Pleasure Pools” Governing Rule: A.R.S. § 32-1154(A)(14): Acting in the capacity of a contractor under any license issued under this chapter in a name other than as set forth on the license. REQUIRED CORRECTIVE ACTION: The respondent is to submit documented compliance.

RCC100 11/14

Jobsite Inspection Photos 1 Complaint No.: 2024-04225 Investigator: John Smith #194 Inspection Date: 4/17/2024 Inspection Time: 8:00AM Jobsite address: 1002 N. Daliann Pl., Tucson, AZ 85748

Jobsite Inspection Photos 2 Complaint No.: 2024-04225 Investigator: John Smith #194 Inspection Date: 4/17/2024 Inspection Time: 8:00AM Jobsite address: 1002 N. Daliann Pl., Tucson, AZ 85748

Jobsite Inspection Photos 3 Complaint No.: 2024-04225 Investigator: John Smith #194 Inspection Date: 4/17/2024 Inspection Time: 8:00AM Jobsite address: 1002 N. Daliann Pl., Tucson, AZ 85748

Jobsite Inspection Photos 4 Complaint No.: 2024-04225 Investigator: John Smith #194 Inspection Date: 4/17/2024 Inspection Time: 8:00AM Jobsite address: 1002 N. Daliann Pl., Tucson, AZ 85748

Jobsite Inspection Photos 5 Complaint No.: 2024-04225 Investigator: John Smith #194 Inspection Date: 4/17/2024 Inspection Time: 8:00AM Jobsite address: 1002 N. Daliann Pl., Tucson, AZ 85748

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Geoffrey Spalt, Case No. 2024-04225 COMPLAINANT, v. Pleasure Spas Inc. CITATION DBA: Pleasure Pools License No. ROC 166025,

Pleasure Spas Inc. DBA: Pleasure Homes License No. ROC 201430 RESPONDENT.

The Registrar issues this Citation to Pleasure Spas Inc. DBA: Pleasure Pools and Pleasure Spas Inc. DBA: Pleasure Homes (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by May 25, 2024, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). THE WRITTEN COMPLAINT On April 11, 2024, Geoffrey Spalt (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating: Charge :1 A.R.S. § 32-1154(A)(3) - R4-9-108(a)

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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. Charge :2 A.R.S. § 32-1154(A)(3) - R4-9-108(b) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9- 108(b): A contractor shall perform all work in accordance with any applicable building codes and professional industry standards. For work to be performed in accordance with professional industry standards, a contractor shall use such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity. Charge :3 A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1124(B) Failure in any material respect to comply with this chapter; Namely A.R.S. § 32-1124(B). Charge :4 A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1158 Failure in any material respect to comply with this chapter; Namely A.R.S. § 32-1158. Charge :5 A.R.S. § 32-1154(A)(12) - A.R.S. § 32-1158.01 Failure in any material respect to comply with this chapter; Namely A.R.S. § 32-1158.01. Charge :6 A.R.S. § 32-1154(A)(14) Acting in the capacity of a contractor under any license issued under this chapter in a name other than as set forth upon the license. Charge :7 A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held.

If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F). FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2024-04225. 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 May 25, 2024. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings. RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an 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

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B). RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated May 10, 2024. By: /s/ Tedi Quezada Tedi Quezada Legal Assistant Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, May 10, 2024 to:

Respondent Certified Mail No: [number redacted] of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Pleasure Spas Inc. DBA: Pleasure Pools 2004 E Irvington Rd #186 Tucson, AZ 85714

Copy mailed by USPS First Class mail this same date to: Respondent Pleasure Spas Inc. DBA: Pleasure Pools 2004 E Irvington Rd #186 Tucson, AZ 85714

Complainant Geoffrey Spalt 1002 N Daliann Place Tucson, AZ 85748 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. 2024-04225

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any)

Geoffrey Chad Spalt Mailing Address (Enter jobsite in Contract/Project section) City State Zip

1002 N Daliann Place Tucson/AZ Arizona 85748 Phone Number Email

[number redacted] [email redacted] I consent to receive communications electronically in connection with this case Name of Attorney (if any)

Street Address of Attorney City State Zip

Phone Number of Attorney Email of Attorney

Contractor Information Name (as shown on contract/invoice) ROC License Number(s)

Pleasure Spas Inc ROC 166025 Street Address City State Zip

2004 E Irvington Rd #186 Tucson AZ 85714 Phone Number Email

[number redacted] [email redacted] Name of Person(s) Representing License

Owen Brown;Carly Brown Contract/Project Information Contract Date Contract Amount Amount Paid

February 27, 2023 $14,992.07 $13,000.00 Date Work Started Date Work Stopped Date Work Was Completed

February 27, 2023 March 11, 2024 Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address City State Zip

1002 N Daliann Place Tucson AZ 85748 Name of Construction Site Owner Construction Site Name (if applicable)

Geoffrey Spalt Phone Number of Construction Site Owner Email of Construction Site Owner

[number redacted] [email redacted] This complaint is for Abandonment;Other I have contacted the contractor by Have you filed a complaint in court? No

RCC099 12/05/18 Page 1 of 2 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Has any work been corrected? No

The contract was Written All change orders were N/A This project was Residential This project involved Other Spa installation in back yard A building permit was obtained by Contractor P23BP04008 Pima County List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)

The project has already exceeded 13 months in duration and I received an email on 04/07/24 that the work has halted due to the contractor receiving a UCC lien against their bank accounts due to lack of cash flow. Allegations Listed on Complaint:

Work has been slow to progress and has now been halted due to contractor insufficient funds.

Signature I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date

Geoffrey Chad Spalt \complainant1\ \complainantd1\

RCC099 12/05/18 Page 2 of 2 [email redacted]

From: Operations <[email redacted]> Sent: Sunday, April 7, 2024 9:33 PM To: [email redacted] Subject: Pool completion

Flag Status: Flagged

Good evening. I wanted to reach out and discuss your pool. It is nearing the end of construction and we would like to get it completed was soon as possible, and I Know you would as well.

I do not like to talk about the business, but what is going on is affecting your project, so it is only right to keep you in the loop.

As you are aware 2023 was a difficult year for us as our managers did not do their job and our partners caused us a lot of unnecessary expenses. Unfortunately it is a lot worse that we ever imagined and there has been money missing on every project. We also took a loan last July based on believing our partners when they said the jobs were going well, when in fact it was anything but that.

The lenders have put a UCC lien against us because of the lack of cash flow, and this has stopped our access to our bank account.

I appreciate you want to have your pool done, and I am currently in the process of trying to sell off a number of pieces of our equipment. I hope to have this done this week, so we can get your pool completed.

Once again I apologize that your a caught up in the internal issues, and I am working to get it resolved as fast as I can. I have laid off all off our staff as of this Tuesday as well, so it will only be me working on these things. This will save some wages to allow us to complete your job faster than if we had more wages to pay.

Kindest Regards,

Owen Brown 1.520.403.8960 Office [email redacted] www.pleasurepoolstucson.com

[email redacted]

From: Operations <[email redacted]> Sent: Tuesday, April 9, 2024 1:04 PM To: cmspalt Cc: owen Subject: RE: Pool completion

Good Afternoon Chad,

Thank you for your understanding and reply.

We truly believe that honesty is the best policy and while it pains us to have to be in this position we are going to do everything we can to see this through.

We have not yet purchased the paint for the spa. If you have paint, we can do the painting.

The remaining costs to complete your spa are;

Equipment $5,100 (aprox) Equipment Hook Up $600 Electrical $500 Start Up Kit $300

Total; $6,500

You are correct that you have $992.07 remaining in your contract payments.

At this point you have 3 options from what we can see.

1. You purchase the equipment and pay for the hook up (direct to vendor) we will supply the electrical and start up. We will paint the spa- you provide the paint.

2. We wait and see if we are able to pull out the capital to complete as per contract.

3. We cancel your contract and you hire someone else to complete it.

We understand that if more costs are incurred that puts us in a state of liability. However, we are not sure what else to offer at this time as we are doing what we can to bring this to completion.

We understand that this is not ideal. We have had many sleepless nights trying to find a solution where we did not have to bring this to you, but as stated we stand on honesty is the best policy. It is our deep regret that we are in this situation. But we are committed to seeing your pool through to completion if this is your desire.

Please let us know your thoughts on how you would like to proceed. Kindest Regards,

Owen & Carly Brown 1.520.403.8960 Office [email redacted] www.pleasurepoolstucson.com

---- On Mon, 08 Apr 2024 05:18:39 -0700 <[email redacted]> wrote ---

Owen,

I am sorry to hear about your business issues and the negative impact your managers and partners have had in creating them. I also appreciate your desire to get our job completed.

Let us know if there is anything that we can do to help get the project completed. If you have not yet purchased the paint then Maria and I can take care of painting the spa stucco as we have some extra paint left over from when we painted our masonry fence.

Also, at this point I would like to make sure that we get as much of our investment back as possible. Our ultimate goal is for you to complete the project per the contract but we realize that we may have to reduce our expectations based on the current state of your business. One alternate option could be for you to supply all of the pool equipment in the contract (VSP, sand filter, 400k BTU heater) and us to then contract with a different pool company to complete the installation at our own expense.

Again, we are sorry to hear about the business state of your company. We will wait to here from you regarding the best way to proceed to complete our project.

Chad

Chad Spalt 1002 N Daliann Place Tucson, AZ 85748 520-207-4266 [email redacted]

***

This is my account of our payments to date and our outstanding balance upon job completion:

$14,992.07 Job contracted value $ 1,000.00 Down payment received $ 5,000.00 Progress payment received $ 8,000.00 Progress payment received $ 992.07Balance due upon completion

From: Operations <[email redacted]> Sent: Sunday, April 7, 2024 9:33 PM To: [email redacted] Subject: Pool completion

Good evening. I wanted to reach out and discuss your pool. It is nearing the end of construction and we would like to get it completed was soon as possible, and I Know you would as well.

I do not like to talk about the business, but what is going on is affecting your project, so it is only right to keep you in the loop.

has been money missing on every project. We also took a loan last July based on believing our partners when they said the jobs were going well, when in fact it was anything but that.

The lenders have put a UCC lien against us because of the lack of cash flow, and this has stopped our access to our bank account.

Kindest Regards,

Owen Brown 1.520.403.8960 Office [email redacted] www.pleasurepoolstucson.com

Pleasure Pools Spas & Landscaping Tucson Arizona 85714-1809 U.S.A

PAYMENT RECEIPT

Payment Date 20 Jul 2023 Amount Received Reference Number 4866 $5,000.00 Payment Mode Check

Bill To

Spalt, Chad 1002 N Daliann Place Tucson 85748 AZ

Payment for

Invoice Number Invoice Date Invoice Amount Payment Amount

INV-000376 14 Jul 2023 $5,000.00 $5,000.00

Pleasure Pools Tucson Arizona 85714-1809 U.S.A

PAYMENT RECEIPT

Payment Date 06 Mar 2024 Amount Received Reference Number $8,000.00 Payment Mode Bank Transfer

Bill To

Spalt, Chad 1002 N Daliann Place Tucson 85748 AZ

Payment for

Invoice Number Invoice Date Invoice Amount Payment Amount

INV-000496 05 Mar 2024 $8,000.00 $8,000.00

Estimate # Spa install

Fiberglass Pools of Arizona Arizona U.S.A

Estimate Date : 12 Feb 2023 Bill To Chad Spalt Expiry Date : 17 Feb 2023

Subject : Fiberglass Spa Installation

# Item & Description Qty Rate Amount

Pump package 1.00 8,500.00 8,500.00 Hayward or Pentair (depending on in stock availability) spa package. VSP, Sand Filter, and 400k BTU heater. Includes up to 60' of gas line. Two LED lights (one in the overflow, and one in the spa). Includes electrical.

Excavation - Spa under 2' 1.00 800.00 800.00 Includes excavation for plumbing lines as well.

Plumbing 1.00 1,000.00 1,000.00 Includes collection tank.

Travertine 62.00 18.00 1,116.00 16x24 for facing and top of spa

Block on beam 75.00 25.00 1,875.00 Includes 2 stairs to access the hot tub, 3' x12" wide. Includes footer. Top of footer to be 2' lower than top of fiberglass.

Walkway 35.00 18.00 630.00 2' Walkway around spa

Permit 1.00 500.00 500.00

Sub Total 14,421.00

Pima County (3.96%) 571.07

Total $14,992.07

Notes Payment terms to be part of signed contract.

Looking forward for your business.

Received 5/28/24, 8:02 AM State of Arizona Mail - Complaint 2024-04225 5/25/2024 ROC Legal

Answers - AZROC <[email redacted]>

Complaint 2024-04225 message

Operations <[email redacted]> Sat, May 25, 2024 at 4:37 PM To: answer <[email redacted]> Cc: Owen Brown <[email redacted]>

To Whom it May Concern,

We are writing this email in response to the citation issued for complaint 2024-04225 with Chad Spalt.

Pleasure Pools is currently experiencing financial hardship and so have not had the ability to complete the work on this project.

We had communicated with Mr. Spalt prior to him making the formal complaint. We have every hope and intention of completing.

I am including our last correspondences with Mr Spalt where we had outlined the situation.

Kindest Regards,

Carly Brown 1.520.403.8960 Office [email redacted] www.pleasurepoolstucson.com

attachments RE: Pool completion- Emial 1.pdf 70K RE: Pool completion Email 2.pdf 83K

https://mail.google.com/mail/b/AEoRXRR1nCLUZZRgBcuaTnCBXFe39LBgcBY3BZpLtyPzRbsRLsJj/u/0/?ik=581c53cf5c&view=pt&search=all&permt… 1/1 Received RE: Pool completion 2024-05-25, 4:35 PM 5/25/2024 ROC Legal

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RE: Pool completion

[email redacted] <[email redacted]>   | CM  Mon, 08 Apr 2024 5:18:44 AM -0700 • INBOX   To "'Operations'" <[email redacted]>

Cc "'cmspalt'" <[email redacted]>

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Owen,

I am sorry to hear about your business issues and the negative impact your managers and partners have had in creating them. I also appreciate your desire to get our job completed.

Again, we are sorry to hear about the business state of your company. We will wait to here from you regarding the best way to proceed to complete our project.

Chad

Chad Spalt 1002 N Daliann Place Tucson, AZ 85748 520-207-4266 [email redacted]

***

This is my account of our payments to date and our outstanding balance upon job completion:

$14,992.07 Job contracted value @mention a user or group to share this conversation 

https://mail.zoho.com/zm/popMail.do?accId=[number redacted]&ms…ityId=[number redacted]&entityType=1&isSrch=true&feature=false Page 1 of 1 Received RE: Pool completion 2024-05-25, 4:35 PM 5/25/2024 ROC Legal

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RE: Pool completion

[email redacted] <[email redacted]>   | CM  Tue, 09 Apr 2024 1:43:48 PM -0700 • INBOX   To "'Operations'" <[email redacted]>

Cc "'owen'" <[email redacted]>, "'cmspalt'" <[email redacted]>

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Owen and Carly,

Since the majority of our last payment ($8,000) was to cover the cost of purchasing the pool equipment we will choose option 2 and wait to see if you are able to pull out the capital to complete the job per the contract.

I am assuming that options 1 and 3 below do not include a full or partial refund of the $8,000 payment that we just made. If that is the case then we do not want to incur additional costs at this time and will stick with option 2.

Please let us know the anticipated amount of time it will take for you to gather up enough capital to complete the contract.

Thanks.

Chad

From: Operations <[email redacted]> Sent: Tuesday, April 9, 2024 1:04 PM To: cmspalt <[email redacted]> Cc: owen <[email redacted]> Subject: RE: Pool completion

Good Afternoon Chad,

Thank you for your understanding and reply.

We truly believe that honesty is the best policy and while it pains us to have to be in this position we are going to do everything we can to see this through.

We have not yet purchased the paint for the spa. If you have paint, we can do the painting. @mention a user or group to share this conversation 

https://mail.zoho.com/zm/popMail.do?accId=[number redacted]&ms…ityId=[number redacted]&entityType=1&isSrch=true&feature=false Page 1 of 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