é a STATE OF FLORIDA iy S&P DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION “*’ (>, ks CONSTRUCTION INDUSTRY LICENSING BOARD DIVISION I DEPARTMENT OF BUSINESS AND p PROFESSIONAL REGULATION, 0 y SY) CL . Petitioner, v. Case Nos. 2006-061583 2007-029287 2007-041134 2007-055574 2007-057357 JOHN ALAN OSTENDORF, Respondent. / ADMINISTRATIVE COMPLAINT Petitioner, Department of Business and Professional Regulation, ("Petitioner"), files this Administrative Complaint | before the Construction Industry Licensing Board, against JOHN ALAN OSTENDORF ("Respondent"), and says: 1. Petitioner is the state agency charged with regulating the practice of contracting pursuant to Section 20.165, Florida Statutes, and Chapters 455 and 489, Florida Statutes. 2. Respondent is and has been, at all times material hereto, a Certified Building Contractor in the State of Florida, having been issued license number CBC1251699. G:\Ted 2008 Construction Cases\06-061533.Ostendorf. AC.doc 1 3. Respondent's address of record is 125 North Congress Avenue, Unit 17, Delray Beach, Florida 33445. 4. At all times material hereto, Respondent was licensed as the qualifying agent for ‘Home Team Advantage, Inc. (hereinafter referred to as "Contractor"), a Florida corporation with qualified business organization certificate of authority number QB29759. 5. Section 489.1195(1) (a), Florida Statutes, provides that all primary qualifying agents for a business organization are jointly and equally responsible for supervision of all operations of the business organization; for all field work at all sites; and for financial matters, both for the organization in general and for each specific job. Case No. 2006-061583 6. On or about November 21, 2005 the Contractor entered into a contract with Bryon Halsey (hereinafter referred to as “Halsey”) to perform hurricane damage repair work on Halsey’s residence located at 1115 N.W. 7th Avenue, Ft. Lauderdale, Florida. 7. The contract price was $36,350.00. 8. On or about January 12, 2006 Halsey paid the Contractor $4,000.00 toward the contract price. G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc : 2 9. The Contractor failed to apply for a building permit for the project and failed to commence the project. 10. On or about August 3, 2006 the Contractor entered into a written contract with Halsey to perform kitchen remodeling, master bathroom remodeling, and window and door installations at Halsey’s residence, for the price of $33,600.14. 11. Per the August 3, 2006 contract, on or about May 19, 2006 and August 9, 2006, Halsey made payments to the Contractor toward the contract price totaling $10,000.00. 12. The August 3, 2006 contract provided that Halsey was responsible for obtaining a building permit for the kitchen remodeling work and that the Contractor was responsible for obtaining a building permit for the master bathroom remodeling work. 13. No building permit was applied for or obtained for any of the work called for by the August 3, 2006 contract. 14. During the period from about August to September 2006, the Contractor performed some kitchen remodeling work. 15. Dissatisfied with the speed and quality of the Contractor’s work, on or about September 28, 2006, Halsey terminated the August 3, 2006 contract. 16. The Contractor agreed initially to refund some unused portion of Halsey’s payments, but subsequently the Contractor G:Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 3 failed or refused to do so, despite having spent only $5,690.51 on material and labor. COUNT ONE 17. Petitioner realleges and incorporates the allegations set forth in paragraphs one through sixteen as though fully set forth in this Count One. 18. Section 489.126(2) (a), Florida Statutes, states: “A contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must apply for permits necessary to do work within 30 days after the date payment is made, except where the work does not require a . permit under the applicable codes and ordinances.” 19. Based upon the foregoing, the Respondent violated Section 489.129(1)(i), Florida Statutes, by failing in any material respect to comply with the provisions of this part or violating a rule or lawful order of the board. COUNT TWO 20. Petitioner realleges and incorporates the allegations set forth in paragraphs one through sixteen as though fully set forth in this Count Two. 21. Based upon the foregoing, the Respondent violated Section 489.129(1) (4), Florida Statutes, by abandoning a G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 4 see coed construction project in which the contractor is engaged or under contract as a contractor. A project may be presumed abandoned after 90 days if the contractor terminates the project without just cause or without proper notification to the owner, including the reason for termination, or fails to perform work without just cause for 90 consecutive days. COUNT THREE 22. Petitioner realleges and incorporates the allegations set forth in paragraphs one through sixteen as though fully set forth in this Count Three. 23. Based upon ‘the foregoing, the Respondent violated Section 489.129(1) (m), Florida Statutes, by committing incompetency or misconduct in the practice of contracting, by failing to return any money to Halsey. COUNT FOUR 24. Petitioner realleges and incorporates the allegations set forth in paragraphs one through sixteen as though fully set forth in this Count Four. 25. Based upon the foregoing, the Respondent violated Section 489.129(1) (0), Florida Statutes, by proceeding on any job without obtaining applicable local building department permits and inspections, by starting work on the project in this case without a building permit. . G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 5 Ses se Case No. 2007-029287 26. On or about March 25, 2006, the Contractor entered into a written contract with Cassandra Ferguson (hereinafter referred to as “Ferguson”) to remodel and renovate Ferguson's residence located at 2180 N.W. 3rd Street, Pompano Beach, Florida a/k/a 2260 N.W. 3rd Street, Pompano Beach, Florida. 27. The contract price was $80,000.00. 28. On or about March 18, 2006 and March 25, 2006, Ferguson made payments’ to the Contractor pursuant to the contract totaling $16,000.00. 29. On or about May 15, 2006, the Contractor applied to the City of Pompano Beach building department for a building permit for partial interior demolition work. The application was approved, and on or about May 15, 2006, building permit number 06-6644 was issued. Work pursuant to that building permit was performed by members of Ferguson’s family. 30. On or about April 25, 2007 the Contractor applied to the City of Pompano Beach building department for a building permit for the project. On or about May 9, 2007 the building department mechanical division rejected the plans with the comment, “provide 2 sets of mechanical plans showing total scope of work.” On or about July 13, 2007 the building department building division rejected the plans with the comment, “will G:ATed 2008 Construction Cases\06-061583.Ostendorf. AC.doc 6 ae sees” need more information from architect...” On or about July 16, 2007 the building department plumbing division rejected the plans with the comment, “rejected need to state on plans or appl. if fixtures are to be removed and replaced same location or if any fixtures will be relocated.” 31. On or about August 20, 2007 the Contractor picked up the plans from the building department. Thereafter, the Contractor did not resubmit the plans, no building permit was issued to the Contractor for the project, and without just cause and notice to Ferguson the Contractor failed to commence the project, thereby abandoning the project. COUNT FIVE 32. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and twenty six through thirty one as though fully set forth in this Count Five. 33. Section 489.126(2) (a), Florida Statutes, states: “A contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must apply for permits necessary to do work within 30 days after the date payment is made, except where the work does not require a permit under the applicable codes and ordinances.” G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 7 34. Based upon the foregoing, the Respondent violated Section 489.129(1)(i), Florida Statutes, by failing in any material respect to comply with the provisions of this part or violating a rule or lawful order of the board. COUNT SIX 35. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and twenty six through thirty one as though fully set forth in this Count Six. 36. Based upon the foregoing, the Respondent violated Section 489.129(1) (4), Florida Statutes, by abandoning a construction project in which the contractor is engaged or under contract as a contractor. A project may be presumed abandoned after 90 days if the contractor terminates the project without just cause or without proper notification to the owner, including the reason for termination, or fails to perform work without just cause for 90 consecutive days. COUNT SEVEN 37. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and twenty six through thirty one as though fully set forth in this Count Seven. 38. The Contractor committed misconduct in the practice of contracting by failing to expeditiously apply for and obtain a building permit for the project in this case. G:ATed 2008 Construction Cases\06-061583.Ostendorf. AC.doc 8g 39. Based upon the foregoing, the Respondent violated Section 489.129(1) (m), Florida Statutes, by committing incompetency or misconduct in the practice of contracting. Case No. 2007-041134 40. On or about October 10, 2005 the Contractor entered into a written contract with Kenneth and Kaarina Altman (hereinafter referred to as the “Altmans”) to construct an addition and enclose a patio at the Altmans’ residence located at 12420 S.W. 7 Place, Davie, Florida. 41. The contract price was $87,500.00. 42, On or about September 28, 2005 and October 11, 2005 the Altmans made payments to the Contractor pursuant to the contract totaling $25,000.00. 43. On or about June 27, 2006 the Contractor applied to the Town of Davie building department for a building permit for the project, but the application was not approved, and the Contractor did not obtain a building permit. 44, The Contractor did not commence construction, and on or about January 29, 2007 the Altmans terminated the contract, citing the Contractor’s non-performance. G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 9 COUNT EIGHT 45. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and forty through forty four as though fully set forth in this Count Eight. 46. Section 489.126(2) (a), Florida Statutes, states: “A contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must apply for permits necessary to do work within 30 days after the date payment is made, except where the work does not require a permit under the applicable codes and ordinances.” 47. Based upon the foregoing, the Respondent violated Section 489.129(1) (i), Florida Statutes,. by failing in any material respect to comply with the provisions of this part or violating a rule or lawful order of the board. COUNT NINE 48. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and forty through forty four as though fully set forth in this Count Nine. 49, The Contractor committed misconduct in the practice of contracting by failing to expeditiously apply for and obtain a building permit for the project in this case. G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 10 50. Based upon the foregoing, the Respondent violated Section 489.129(1) (m), Florida Statutes, by committing incompetency or misconduct in the practice of contracting. Case No. 2007-055574 51. On or about September 14, 2005 the Contractor entered into. a written contract with Franklyn and Marilyn Watts (hereinafter referred to as the “Watts”) for the construction of a master bathroom addition to the Watts’ residence located at 4940 S.W. 126° Avenue, Southwest Ranches, Florida. 52. The contract price was $40,000.00. 53. On or about September 6 and 14, 2005 the Watts made payments to the Contractor pursuant to the contract totaling $9,000.00. 54. On or about March 1, 2006 the Contractor applied to the Town of Southwest Ranches building department for a building permit for the project, but the application was not approved. 55. The Contractor failed to expeditiously apply for and obtain a building permit for the project and did not commence construction. On or about April 2007 the Watts terminated the contract. G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc i sete dl COUNT TEN 56. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and fifty one through fifty five as though fully set forth in this Count Ten. 57. Section 489.126(2) (a), Florida Statutes, states: “A contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must apply for permits necessary to do work within 30 days after the date payment is made, except where the work does not require a permit under the applicable codes and ordinances.” 58. Based upon the foregoing, the Respondent violated Section 489.129(1) (i), Florida Statutes, by failing in any material respect to comply with the provisions of this part or violating a rule or lawful order of the board. COUNT ELEVEN 59. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and fifty one through fifty five as though fully set forth in this Count Eleven. 60. Based upon the foregoing, the Respondent’ violated Section 489.129(1) (m), Florida Statutes, by committing incompetency or misconduct in the practice of contracting. G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 2 swage Case No. 2007-057357 61. On or about May 4, 2005 the Contractor received $6,000.00 from James Murphy (hereinafter referred to as ‘“Murphy”) as an initial deposit toward the proposed construction of an addition to Murphy’s residence located at 1394 S.E. 22nd Avenue, Pompano Beach, Florida. 62. On or about June 22, 2005 the Contractor offered to Murphy a written contract proposal for the construction of a two-car garage and bathroom addition to Murphy’s residence for $60,000.00. The proposal called for Murphy to pay _ the Contractor an additional $12,000.00 as a 20% “acceptance draw.” 63. At the time the offer, but unbeknownst to Murphy, existing zoning restrictions substantially affected the feasibility of the project. At or prior to the time.of the offer, the Contractor failed to disclose the zoning restrictions to Murphy, even though the Contractor knew or should have known about them. 64. On or about June 22, 2005 Murphy accepted the Contractor's proposal and paid the Contractor the $12,000.00 acceptance draw. 65. On or about November 29, 2005 the Contractor applied to the City of Pompano Beach building department for a building permit for the project. On or about December 2, 2005 the G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 13 ‘building department’s planning and zoning department rejected the plans with the comment, “Addition violates the front setback of 25’ plans shows addition is only 11’ feet from front property line.” No building permit for the project was issued. 66. The Contractor proposed alternative construction projects to Murphy. Murphy did not accept any of the proposals and demanded that the Contractor return the monies that Murphy had paid, but the Contractor failed or refused to do 80, claiming, despite the zoning restrictions, to be “ready, willing and able” to perform in accordance with the contract. COUNT TWELVE 67. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and sixty one through sixty six as though fully set forth in this Count Twelve. 68. Section 489.126(2) (a), Florida Statutes, states: “A contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must apply for permits necessary to do work within 30 days after the date payment is made, except where the work does not require a permit under the applicable codes and ordinances.” 69. Based upon the foregoing, the Respondent violated Section 489.129(1) (i), Florida Statutes, by failing in any G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 14 material respect to comply with the provisions of this part or violating a rule or lawful order of the board. COUNT THIRTEEN 70. Petitioner realleges and incorporates the allegations set forth in paragraphs one through five and sixty one through sixty six as though fully set forth in this Count Thirteen. 71. The Contractor committed misconduct in the practice of contracting by any one or more of the following: (a) failing to disclose the zoning restrictions to Murphy before entering into the June 22, 2005 contract with Murphy; (b) failing to expeditiously apply for a building permit for the project in this case; and (c) failing to return any money to Murphy. 72. Based upon the foregoing, the Respondent violated Section 489.129(1) (m), Florida Statutes, by committing incompetency or misconduct in the practice of contracting. WHEREFORE, Petitioner respectfully requests the Construction Industry Licensing Board enter an Order imposing one or more of the following penalties: place on probation, reprimand the licensee, revoke, suspend, deny the issuance or renewal of the certificate or registration, require financial restitution to a consumer, impose an administrative fine not to exceed $10,000 per violation, require continuing education, assess costs associated with investigation and prosecution, G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC. doc 1s impose any or all penalties delineated within Section 455.227(2), Florida Statutes, and/or any other relief that the Board is authorized to impose pursuant to Chapters 489, 455, Florida Statutes, and/or the rules promulgated thereunder. th Signed this 2 day of A , 2008. PC Found: August 26, 2008 / i he... Gng Div. I: Bonuso & Thornton Theodore R. Gay Assistant General Counsel Florida Bar No. 242896 Department of Business and t 1) es Professional Regulation \ \L essen ® Office of the General Counsel areas ane Ph ERK 8240 NW 52™ Terrace, Suite 304 gust cx cu : . : porn Miami, Florida 33166 (305) 470-6783 ext. 2225 Telephone wees (305) 470-5781 Facsimile t\? ww 2.08 grt 22 ef G:\Ted 2008 Construction Cases\06-061583.Ostendorf. AC.doc 16

Docket for Case No: 08-005401PL