2024A-05596-NPC-ROC Notice of Hearing & Packet MAILED 2024-05596.pdf

2024A-05596-NPC-ROC · Registrar of Contractors · 2024-07-30

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Canyon State Barricade Service LLC, Case No. 2024-05596

COMPLAINANT, Docket No. 2024A-05596-NPC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Stormwater Pros LLC License No. ROC 269340,

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

HEARING INFORMATION The hearing is set for:

September 9, 2024 1:00 PM Sondra Vanella 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 June 27, 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)(10)

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.

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 July 30, 2024.

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

Copy mailed via USPS First Class mail July 30, 2024 to:

Respondent(s) Stormwater Pros LLC 1640 S Stapley Dr #235 Mesa, AZ 85204

Respondent's Attorney Chad A. Hester Esq. 1760 E. Pecos Rd., Ste. 332 Gilbert, AZ 85295 Complainant(s) Canyon State Barricade Service LLC 3745 W Lupine Ave Maricopa, AZ 85029

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. 2024-05596 /

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

Douglas A. Ducey, Governor Jeffrey L. Fleetham, 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

May 17, 2024

Via U.S. Mail and Email

Complainant Canyon State Barricade Service LLC 3745 W Lupine Ave Maricopa, AZ 85029

Via U.S. Mail and Email

Respondent Stormwater Pros LLC 1640 S Stapley Dr #235 Mesa, AZ 85204

Re: Complaint No. 2024-05596

Dear Complainant and Respondent:

The Registrar received a complaint filed against Stormwater Pros LLC for non- payment of materials or services rendered. This complaint is complete and will be substantively reviewed by the Registrar.

Respondent is free to raise any issue or affirmative defense to this complaint by filing a response with the Registrar by June 1, 2024. Please reference the complaint number listed above if you file a response. Respondent may file a response by:

Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Email: [email redacted]

The Registrar will not issue a citation before June 1, 2024, and will review Respondent’s response, if one is submitted.

Please be advised that a response to the complaint is not the same as a written answer. If the Registrar issues a citation Respondent must file a written answer to that citation in accordance with A.R.S. § 32-1155.

Sincerely,

/s/ Tedi Quezada __________________ Tedi Quezada

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Legal Department 1700 W Washington St. Ste. 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 Lg100 4/21 Customer : Stormwater Pros LLC - Job ID: 000760 - Invoice# 00003604 (cont.) Note: The * indicates taxable items. EQUIPMENT RENTAL TOTAL $5,331.20 SALES/ONE-TIME CHARGES $315.50 LABOR TOTAL $3,562.50 Please note; a 5% late payment fee per month will SUBTOTAL $9,209.20 automatically be applied to all amounts not paid on SALES TAX (8.6%) $791.99 time. All invoice disputes must be brought to Canyon State Barricades attention within 7 days of date TOTAL CHARGES $10,001.19 of invoice for credits to be given. May be subject to PLEASE PAY THIS AMOUNT $10,001.19 collection and or legal fees.

We appreciate & Value your business!!

*** Job Not Complete ***

AZ UTRACS #19406 Page 2 SBE/DBE/ACDBE #20985037 Thank you for your business ! We appreciate & Value your business! Customer : Stormwater Pros LLC - Job ID: 000760 - Invoice# 00003642 (cont.) Note: The * indicates taxable items. EQUIPMENT RENTAL TOTAL $5,266.95 SALES/ONE-TIME CHARGES $300.00 LABOR TOTAL $6,945.00 Please note; a 5% late payment fee per month will SUBTOTAL $12,511.95 automatically be applied to all amounts not paid on SALES TAX (8.6%) $1,076.03 time. All invoice disputes must be brought to Canyon State Barricades attention within 7 days of date TOTAL CHARGES $13,587.98 of invoice for credits to be given. May be subject to PLEASE PAY THIS AMOUNT $13,587.98 collection and or legal fees.

We appreciate & Value your business!!

*** Job Not Complete ***

AZ UTRACS #19406 Page 2 SBE/DBE/ACDBE #20985037 Thank you for your business ! We appreciate & Value your business! Customer : Stormwater Pros LLC - Job ID: 000760 - Invoice# 00003707 (cont.) Note: The * indicates taxable items. EQUIPMENT RENTAL TOTAL $2,159.70 SALES/ONE-TIME CHARGES $358.50 LABOR TOTAL $6,050.00 Please note; a 5% late payment fee per month will SUBTOTAL $8,568.20 automatically be applied to all amounts not paid on SALES TAX (8.6%) $736.87 time. All invoice disputes must be brought to Canyon State Barricades attention within 7 days of date TOTAL CHARGES $9,305.07 of invoice for credits to be given. May be subject to PLEASE PAY THIS AMOUNT $9,305.07 collection and or legal fees.

We appreciate & Value your business!!

*** Job Complete ***

AZ UTRACS #19406 Page 2 SBE/DBE/ACDBE #20985037 Thank you for your business ! We appreciate & Value your business! Canyon State Barricades Statement 28264 N 166th Ave Date AZ 85387 5/12/2024

To: Stormwater Pros LLC Jill Pederson 1640 S Stapely Dr Suite 235 Mesa, Az 85204

Amount Due Amount Enc. $41,125.46

Date Transaction Amount Balance

02/04/2024 INV #00003572. Due 02/19/2024. Orig. Amount $1,606.19. Sunridge Dr & 1,606.19 1,606.19 Canyon Dr 02/11/2024 INV #00003604. Due 02/26/2024. Orig. Amount $10,001.19. Sunridge Dr 10,001.19 11,607.38 & Canyon Dr 02/18/2024 INV #00003642. Due 03/04/2024. Orig. Amount $13,587.98. Sunridge Dr 13,587.98 25,195.36 & Canyon Dr 03/03/2024 INV #00003681. Due 03/18/2024. Orig. Amount $6,625.03. Sunridge Dr & 6,625.03 31,820.39 Canyon Dr 03/10/2024 INV #00003707. Due 03/25/2024. Orig. Amount $9,305.07. Sunridge Dr & 9,305.07 41,125.46 Canyon Dr

1-30 DAYS PAST 31-60 DAYS PAST 61-90 DAYS PAST OVER 90 DAYS CURRENT Amount Due DUE DUE DUE PAST DUE

0.00 0.00 15,930.10 25,195.36 0.00 $41,125.46 Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/30/2024 ROC Legal Received 5/31/24, 9:54 AM State of Arizona Mail - Complaint no 2024-05596 5/30/2024 ROC Legal

Legal New Mail - AZROC <[email redacted]>

Complaint no 2024-05596 message

Penny Oakeson <[email redacted]> Thu, May 30, 2024 at 2:36 PM To: "[email redacted]" <[email redacted]> Cc: Cindy Johnson <[email redacted]>

Dear Sirs,

We are in receipt of complaint no 2024-05596 against StormWater Pros, LLC. (SWP)

We are disputing this complaint. The attachment is a statement of events that will validate our reasons for dispute.

We would like you to be aware that no person, employee, or representative from Canyon State Barricade, called or emailed our accounting department to request payment. The accounting department had no knowledge of the debt as no documentation was received or communicated by Canyon State.

Respectfully,

Penny Oakeson CFO O: 480-926-1003 F: 480-813-9612

Utah & Arizona's market leader in drywell installation and storm infrastructure maintenance. UT DOPL #9841649 | 380 E. Deer Ridge Dr. | Midway, UT 84049

AZ ROC #269340 | 1640 S. Stapley Dr., Ste. 235 | Mesa, AZ 85204

www.stormwaterprosllc.com https://mail.google.com/mail/b/AEoRXRQC-DJsSfHFqpFprzr7_1LryIqMzP1KF7in8M-xAmw4dM7J/u/0/?ik=d3afebeda9&view=pt&search=all&permthid… 1/2 Received 5/31/24, 9:54 AM State of Arizona Mail - Complaint no 2024-05596 5/30/2024 ROC Legal

From: [email redacted] <[email redacted]> Sent: Thursday, May 30, 2024 2:35 PM To: Penny Oakeson <[email redacted]> Subject: StormWater Lexmark

Scanned_from_a_Lexmark_Multifunction_Product05-30-2024-153452.pdf 2558K

https://mail.google.com/mail/b/AEoRXRQC-DJsSfHFqpFprzr7_1LryIqMzP1KF7in8M-xAmw4dM7J/u/0/?ik=d3afebeda9&view=pt&search=all&permthid… 2/2 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2024-05596 Canyon State Barricade Service LLC,

COMPLAINANT, v. CITATION Stormwater Pros LLC License No. ROC 269340,

RESPONDENT.

The Registrar issues this Citation to Stormwater Pros LLC (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by July 12, 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 May 15, 2024, Canyon State Barricade Service LLC (“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)(10) — Failure by a licensee or agent or official of a licensee to pay monies in excess of $750 when due for materials or services rendered in connection with the licensee's operations as a contractor unless 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 licensee proves that the licensee lacks the capacity to pay and has not received sufficient monies as payment for the particular construction work project or operation for which the services or materials were rendered or purchased.

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. 2024-05596. 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 July 12, 2024. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides 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 deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). 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

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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 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 June 27, 2024. By: /s/ Margaret Lindsey Margaret Lindsey Assistant General Counsel Legal Department Arizona Registrar of Contractors COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, June 27, 2024 to:

Respondent Certified Mail No: [number redacted]

Stormwater Pros LLC 1640 S Stapley Dr #235 Mesa, AZ 85204 Copy mailed by USPS First Class mail this same date to: of 5

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Respondent Stormwater Pros LLC 1640 S Stapley Dr #235 Mesa, AZ 85204

Complainant Canyon State Barricade Service LLC 3745 W Lupine Ave Maricopa, AZ 85029 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. 2024-05596/tq

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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 May 17, 2024

Via U.S. Mail and Email

Complainant Canyon State Barricade Service LLC 3745 W Lupine Ave Maricopa, AZ 85029

Via U.S. Mail and Email

Respondent Stormwater Pros LLC 1640 S Stapley Dr #235 Mesa, AZ 85204

Re: Complaint No. 2024-05596

Dear Complainant and Respondent:

Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Email: [email redacted]

The Registrar will not issue a citation before June 1, 2024, and will review Respondent’s response, if one is submitted.

Sincerely,

/s/ Tedi Quezada __________________ Tedi Quezada

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg100 4/21 Legal Department 1700 W Washington St. Ste. 105 Phoenix, AZ 85007

We appreciate & Value your business!!

*** Job Not Complete ***

We appreciate & Value your business!!

*** Job Not Complete ***

We appreciate & Value your business!!

*** Job Complete ***

AZ UTRACS #19406 Page 2 SBE/DBE/ACDBE #20985037 Thank you for your business ! We appreciate & Value your business! Canyon State Barricades Statement 28264 N 166th Ave Date AZ 85387 5/12/2024

To: Stormwater Pros LLC Jill Pederson 1640 S Stapely Dr Suite 235 Mesa, Az 85204

Amount Due Amount Enc. $41,125.46

Date Transaction Amount Balance

1-30 DAYS PAST 31-60 DAYS PAST 61-90 DAYS PAST OVER 90 DAYS CURRENT Amount Due DUE DUE DUE PAST DUE

0.00 0.00 15,930.10 25,195.36 0.00 $41,125.46 Received 7/12/2024 ROC Legal

Chad A. Hester, Esq. (No. 022894) Kristin M. Cowsert, Esq. (No. 037783) WALLIN HESTER, PLC Rome Towers 1760 E. Pecos Rd., Ste. 332 Gilbert, AZ 85295 Email: [email redacted] Telephone: 480-240-4150 Facsimile: 480-240-4151 Attorneys for Plaintiff

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA CANYON STATE BARRICADE SERVICE LLC Case No: 2024-05596 PLC 1760 E. Pecos Road, Suite 332, Gilbert, AZ 85295

Complainant, WALLINH ESTER

vs. STORMWATER’S WRITTEN ANSWER TO CITATION AND STORMWATER PROS LLC COMPLAINT Respondent. and REQUEST FOR INFORMAL SETTLEMENT CONFERENCE

Respondent STORMWATER PROS LLC’s, License No. 269340 (“StormWater”), by and through undersigned counsel, hereby submits its response to this Citation and Complaint and Request for Informal Settlement Conference as follows:

I. General Description of Issues

Canyon State Barricade Service LLC’s (“Canyon”) initial bid for the project, attached hereto as Exhibit 1 (“Quotation”), was approximately $14,000 for 10 days of work, and yet the final and total amount claimed by Canyon is over $40,000, nearly triple the planned upon amount. The Quotation states that “Changes made outside the scope of

work will require a change order and will be billed time and materials.” Although

Received 7/12/2024 ROC Legal

somehow there were sufficient changes for the cost to apparently triple, there were no change orders and Canyon did not communicate anything regarding increased costs. A valid contract consists of offer, acceptance, consideration, and intent to be bound,

and once a contract is valid, it is binding and enforceable on its terms. See Goodman v.

Physical Res. Eng’g Inc., 229 Ariz. 25, 28 (App. 2011). An offer is a manifestation of willingness to enter into that bargain and create a contractual obligation upon the offeree’s acceptance. K-Line Builders v. First Fed. Sav. & Loan Ass’n, 139 Ariz. 209, 212 (App. 1983). Once a contract is in place, it cannot be unilaterally modified. Angus Medical Co. 1760 East Pecos Road, Suite 332, Gilbert, AZ 85295 PLC

WALLINH ESTER

v. Digital Equip. Corp., 173 Ariz. 159, 164 (App. 1992). Canyon sent the Quotation, which amounted to an offer, and StormWater accepted such offer by directing Canyon to do the work as described. Both parties are bound by the Quotation as the contract, which contract

requires change orders, communication, and set rates and expectations.

StormWater has the following concerns with the invoices provided for being contrary to the contract, which it has attempted to discuss and clarify with Canyon, to be met only with further, stronger demand for payment and no explanation:

• The invoices show a higher than quoted price for the design and submittal of the traffic

control plan—even a quotation sent on February 4 (the “Second Quotation”), attached hereto as Exhibit 2, immediately before the start of work and after the design, submission, and approval was submitted, shows a lower price and much lower estimate

for the overall cost of the project.

• The invoices show charges for days no work was performed o 2/7 there was no work due to rain.

Received 7/12/2024 ROC Legal

o 2/20, 2/21, and 2/22 no work was performed because the officer did not show up to the worksite (which officer and marked car are both billed on the invoices).

• The rate for the officers increased from the Quotation and Second Quotation.

• The invoices show duplicate charges. o Officer and marked car charges for 2/12 o Double tech/truck charges on 2/5, 3/4, 3/5, and 3/6 • The invoices show rentals of equipment over days not worked and prior to work being 1760 East Pecos Road, Suite 332, Gilbert, AZ 85295 PLC

WALLINH ESTER

possible. These issues alone account for over $10,000. All of this has been communicated to Canyon and they are unwilling to engage in any reasonable conversations or provide explanation

for the charges.

Even during the work process, Canyon was not communicative and acted contradictory to the communications between it and StormWater. StormWater explicitly communicated the 2/7 work stoppage due to the rain, yet charges for that day still appeared

on the invoice when it was finally provided. Canyon has not acted with transparency or in

accordance with its agreements. Rather than engaging in reasonable conversations, Canyon has elected to aggressively pursue our Client through this ROC matter and debt collections. This process

has been unfortunate and disappointing, destroying the professional relationship.

StormWater is not attempting to withhold money fairly earned and agreed upon with Canyon, it is merely attempting to understand the severe discrepancy in charges, as it has

Received 7/12/2024 ROC Legal

explained in writing to Canyon and its representatives, pursuant to A.R.S. §32-1183(E). Such a dispute is not thus grounds for suspension or revocation of a contractor’s license. As such StormWater remains committed to paying the undisputed amounts actually due

and owing under the original bid, however states that this matter must be dismissed in its

entirety as Canyon simply cannot meet its burden of establishing what is actually due and owing. Additionally, StormWater is hopeful that Canyon will be willing to engage in an informal settlement conference to resolve this matter, and hereby requests such under 1760 East Pecos Road, Suite 332, Gilbert, AZ 85295 PLC

WALLINH ESTER

A.R.S. §41-1092.06. RESPECTFULLY SUBMITTED this 12th day of July, 2024. W ALLIN H ESTER PLC

By: /s/ Chad A. Hester Chad A. Hester, Esq. Attorneys for Plaintiff

Received 7/12/2024 ROC Legal

EXHIBIT 1 Received 7/12/2024 ROC Legal Received 7/12/2024 ROC Legal

EXHIBIT 2 Received 7/12/2024 QUOTATION ROC Legal Canyon State Barricade Service LLC Quote Date Quote ID 28264 N. 166th Ave 11/16/2023 [number redacted] Surprise, AZ 85387 602-795-8821 Valid Through: 12/16/2023

Fax 623-975-8300 ROC #338321

Storm Water Pros LLC Jill Peterson Job Location: Sunridge Dr. & Canyon Dr Fountain Hills Quote Created By: Larry Herrera Phone: 480-926-1003 Estimated Days: 10 Email: [email redacted] Item Description Price UOM Qty/Day Days Total Qty. Total Daily Traffic Control -Road Closure * $625.00 Per Day 1 10 10 $6,250.00 Changeable Message Board - * $75.00 Each/Per Day 1 10 10 $750.00 Traffic Control Plan- Design/Submittal - * $80.00 Each 2 1 2 $160.00 Off Duty Police Officer - * $110.00 Per Hour 8 10 80 $8,800.00 Note: The * indicates taxable items. ONE TIME CHARGES $160.00 Quote is for Road closure of Sundridge Dr. from Desert Canyon Dr. to LABOR $15,050.00 Sunset Dr., delivery, setup and pickup in 10 days. 24 hr traffic control with a police officer . SUBTOTAL $15,960.00 SALES TAX (8.6%) $1,372.56 Thank you for the opportunity to provide you with a traffic control QUOTE TOTAL $17,332.56 estimate!! We appreciate it very much!!

Scope: Delivery,setup,tear down or pickup of traffic control per approved traffic control plan (TCP).Changes made outside the scope of work will require a change order and will be billed time & materials. Price subject to change based on the approved traffic plan. Excluded: Portable Message Boards Arrow Boards Flaggers Standby Time Temporary Pedestrian Fence Barricading or covering of hazards Municipal Plan Review Fee, Permit Fees, Shadow Truck, Project Specialty Signs, Concrete or Water Filled Barrier Wall, Flagman, Police Officers, Stand by Time, ADA Ramp. Public info directional access signs, radar/speed sensing trailers, and other applicable Intelligent Transportation System type devices. Add'l Terms: Number of days listed on quote is an estimate, customer will be billed for actual days used unless accepted in writing by Canyon State Barricade Service, L.L.C. Invoices are payable with Terms of Net 30 Days. Quote includes only items listed above, additional devices will be charged seperately. ACCEPTANCE OF PROPOSAL/CONTRACT: Your signature on a copy of this proposal returned to us shall indicate your acceptance, and this document shall become a legally binding contract between us.

Initials ______ Page 1 of 2 Received 7/12/2024 Quote For: Storm Water Pros LLC - Quote ID: [number redacted] (cont.) ROC Legal

Add'l Terms: The Customer is responsible for all collection costs & attorney fees incurred by Canyon State Barricades, LLC., including, but not limited to filing & recording fees, and costs. Initials Invoices will be based off the actual ticketed equipment and / or labor delivered to the job. This quote is valid for 60 days. If work starts after 60 days, then Canyon State Barricade Service LLC reserves the right to nullify this quote and re-quote at its own discretion. Sales tax is not included and will be added to all billings. Tax rate subject to change if the prevailing rate changes. 0% Retention

Accepted By: 11/16/2023 Larry Herrera Date Signature Date Canyon State Barricade Service LLC Print Name Visit Our Website at www.canyonstatebarricades.com Title

Company

Initials ______ Page 2 of 2 Received 7/12/24, 1:03 PM State of Arizona Mail - StormWater Pros LLC’s Written Answer to Citation and Complaint Case No. 7/12/2024 2024-05596 ROC Legal

Answers - AZROC <[email redacted]>

StormWater Pros LLC’s Written Answer to Citation and Complaint Case No. 2024- 05596 message

Taite Smith <[email redacted]> Fri, Jul 12, 2024 at 11:58 AM To: "[email redacted]" <[email redacted]> Cc: Chad Hester <[email redacted]>, Kristin Cowsert <[email redacted]>

Hello,

Attached please find StormWater Pros, LLC’s Written Answer to Citation and Complaint. This is for case 2024-05596. Let us know if you have any questions.

Thank you,

Taite N. Smith Firm Administrator/Legal Assistant

Rome Towers 1760 East Pecos Road, Suite 332 Gilbert, Arizona 85295 Telephone: (480) 240-4150 Facsimile: (480) 240-4151 [email redacted] www.wallinhester.com

Notice of Confidentiality: The information transmitted is intended only for the person or entity to whom it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking any action in reliance upon, this information by anyone other than the intended recipient is not authorized.

https://mail.google.com/mail/b/AEoRXRSdPG8SvALrUg9C_RlYRn9P5Bn5ze4hJZwG_FdriT6dhERB/u/0/?ik=581c53cf5c&view=pt&search=all&permth… 1/2 Received 7/12/24, 1:03 PM State of Arizona Mail - StormWater Pros LLC’s Written Answer to Citation and Complaint Case No. 7/12/2024 2024-05596 ROC Legal

StormWater Written Answer to Citation and Complaint 2024 07 12.pdf 113K

https://mail.google.com/mail/b/AEoRXRSdPG8SvALrUg9C_RlYRn9P5Bn5ze4hJZwG_FdriT6dhERB/u/0/?ik=581c53cf5c&view=pt&search=all&permth… 2/2 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