Okaloosa County BOCC — June 3, 2014 — LORD AND SON B3 — reading text

STATEMENT OF QUALIFICATIONS CONSTRUCTION MANAGEMENT SERVICES NEW OFFICE BUILDING AT THE OKALOOSA COUNTY SHERIFF'S OFFICE IN SHALIMAR Financial Responsibility Lord & Son has never failed to complete or been removed from any project that it has been awarded. We are able to provide 100% performance and payment bonds for the entire amount of the cost of construction for this project. Please see the letters of recommendation from our bank references, listed below. Also included with this proposal are Lord & Son’s 2012 financial statements from Warren Averett O’Sullivan Creel, as financial information from 2013 is still being compiled. Financial References First City Bank 135 Perry Avenue NE Fort Walton Beach, FL 32548 (Account No. 102300) Mr. Bob Bennett 850-244-5151 (P) 850-244-3169(F) First National Bank & Trust 29 N. Eglin Parkway Fort Walton Beach, FL 32548 (Account No. 1033573) Mr. Lamar (Skip) Rainer 850-796-2000, Ext. 2428 (P) | 850-796-2003 (F) Waldorff Insurance & Bonding 45 Eglin Parkway, Suite 202 Fort Walton Beach, FL 32548 Mr. Dale Waldorff 850-581-4925 (P) 850-581-4930 (F) Warren Averett O’Sullivan Creel 45 Eglin Parkway NE, Suite 301 Fort Walton Beach, FL 32548 Mr. Joseph Henderson 850-244-5151 (P) | 850-664-2562 (F) Page 40 First City Bank Integrity. Service. Community. Robert E. Bennett, Jr. President & Chief Operating Officer April 3, 2014 Okaloosa County Board of County Commissioners 1804 Lewis Turner Blvd. Fort Walton Beach, FL 32547 re: Lord & Son Construction, Inc. Dear Commissioners, It is my privilege to offer to you my highest recommendation for Lord & Son Construction, Inc. of Fort Walton Beach, FL. I have been personally acquainted with Mr. Lord and his company for over 25 years. They have an impeccable reputation in the business community. Lord & Son Construction has maintained a depository relationship with our bank since 2003. Their accounts are always handled in an exemplary manner. They currently maintain average balances in the mid-six figures, with no history of negative activity on their accounts. If you need additional information, or if I can be of assistance in any way please feel free to call me. Sincerely, y President & Chief Operating Officer 135 Perry Ave. SE | Fort Walton Beach, FL 32548 | p: 850.244.5151 | toll-free: 888.244.5151 | f: 850.664.2126 | firstcitybank.com — bbennett@firstcitybank.com FINI «com April 7, 2014 Okaloosa County Board of County Commissioners 1804 Lewis Turner Blvd.-Suite100 Fort Walton Beach, Florida 32547 Dear Commissioners: lam pleased to report that Lord & Son Construction, Inc. has had a banking relationship with FNBT.COMBank for several years and all loan and deposit accounts have been handled as agreed. They are considered one of our most valued customers. Their current average deposit balance is in the low- mid seven figure range. Please feel free to contact me if you have any further questions. Sincerely, Skip Rainer Executive Vice president (850) 598-3023 FNBT.COM BANK Post Office Drawer 1327 Fort Walton Beach, Florida 32549-1327 EQUAL HOUSING LENDER 850.796.2000 MEMBER FDIC WaALDoRFF INSURANCE & BONDING April 3, 2014 Okaloosa County Board of County Commissioners 302 N Wilson Street, Suite 302 Crestview, FL 32536 RE: Lord & Son Construction, Inc. BCC 42-14 New Office Building at Okaloosa County Sheriff’s Office in Shalimar To Whom It May Concern: This is to advise you that Waldorff Insurance & Bonding, Inc. provides bonding for Lord & Son Construction, Inc. Their surety is Western Surety Company, which has an A.M. Best Rating of A FSC XII and is listed in the Department of the Treasury’s Federal Register. The home office address is 333 Wabash Avenue, Chicago, IL 60604. Lord & Son Construction, Inc. is a financially strong, well-managed company and it is a pleasure to recommend them to you for your consideration. They have an excellent reputation with architects/engineers, owners, subcontractors, and suppliers and are considered to be an exceptional contractor in the area. At this time, we would not anticipate a problem in bonding our client in the amount of $50,000,000 for a single project or $100,000,000 aggregately. The surety reserves the right to perform normal underwriting at the time of any bond request, including, without limitation, prior review and approval of relevant contract documents, bond forms, and project financing. If you have any questions, please do not hesitate to contact me. Sincerely, Presiden ww Trusted 45 EGLIN PARKWAY, NE SUITE 202 Choice’ 1110 NW 6TH STREET FORT WALTON BEACH, FL 32548 ; GAINESVILLE, FL 32601-4247 (850) 581-4925 FAx (850) 581-4930 (352) 374-7779 Fax (850) 581-4930 TOLL FREE: (800) 342-7621 TOLL FREE: (888) 901-3841 WWW.WALDORFFINSURANCE.COM April 11, 2014 Re: Lord & Son Construction, Inc. Workers Compensation Experience Modification Factors TO Whom It May Concern : WaLporF F INSURANCE & BONDING Please be advised that the Workers Compensation Experience Modification factors for the above referenced contractor are as follows: 2014-2015 2013-2014 2012-2013 2011-2012 2010-2011 72 83 84 .87 81 Please let me know if you need anything else. Sincerely, Dan Qoannal Pam Jarman Florida Licensed Agent MAIN OFFICE AS EGLIN PARKWAY, NE SUITE 202 FORT WALTON BEACH, FL 32548 (850) 581-4925 FAx (850) 581-4930 TOLL FREE: (800) 342-7621 ww Trusted Choice WWW.WALDORFFINSURANCE.COM 1110 NW 6TH STREET GAINESVILLE, FL 32601-4247 (352) 374-7779 FAX (850) 581-4930 TOLL FREE: (888) 901-3841 &£ Warren 45 Eglin Parkway, N.E., Suite 301 ¥ Ave rett Fort Walton Beach, FL 32548 CPAs AND ADVISORS 850.244.5121 warrenaverett.com INDEPENDENT AUDITORS’ REPORT Board of Directors Lord & Son Construction, Inc. Fort Walton Beach, Florida Report on Financial Statements We have audited the accompanying financial statements of Lord & Son Construction, Inc. (a Florida S Corporation), which comprise the balance sheets as of December 31, 2013, and 2012, and the related statements of income, changes in shareholders' equity and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for Qualified Opinion As more fully described in Note 2 to the financial statements, the Company’s financial statements do not include the accounts of LDL2, LLC, and DHSM Group, LLC that the Company has determined are variable interest entities. In our opinion, the Company’s financial statements should include the accounts of LDL2, LLC, and DHSM Group, LLC to conform with accounting principles generally accepted in the United States of America. Management has chosen not to consolidate the financial statements of the variable interest entities after an evaluation of the costs and benefits to make such presentation. Board of Directors Lord & Son Construction, Inc. Independent Auditors’ Report (Continued) Qualified Opinion In our opinion, except for the effects of not including the accounts of LDL2, LLC, and DHSM Group, LLC in the accompanying financial statements as explained in the Basis for Qualified Opinion paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of Lord & Son Construction, Inc. as of December 31, 2013 and 2012, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information in the accompanying schedules is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Yum Cuued, LLC Fort Walton Beach, Florida February 28, 2014 FINANCIAL STATEMENTS LORD & SON CONSTRUCTION, INC. BALANCE SHEETS DECEMBER 31, 2013 AND 2012 ASSETS CURRENT ASSETS Cash and cash equivalents Receivables Contract Related party receivable, current portion Investments in marketable equity securities Cost and estimated earnings in excess of billings on uncompleted contracts Total current assets PROPERTY AND EQUIPMENT, NET OTHER ASSETS Investments Real estate Investment in joint ventures Cash value of life insurance Related party receivable, net of current portion Deposits Total other assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable Accrued payroll taxes Warranty reserve Customer deposits Accrued provision for estimated loss on uncompleted contracts Billings in excess of costs and estimated earnings on uncompleted contracts Total current liabilities LONG-TERM LIABILITIES Shareholder loans Total long-term liabilities TOTAL LIABILITIES SHAREHOLDERS' EQUITY Common stock, $0.0396 par value, 9,500 shares authorized, 9,500 issued and 9,372 outstanding Additional paid-in capital Retained earnings Accumulated other comprehensive income Less treasury stock Total shareholders’ equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY See notes to financial statements. 3 2013 2012 $2,626,085 $2,584,391 1,600,657 1,110,575 10,220 20,296 1,982,022 2,212,044 7,335 15,000 6,226,319 5,942,306 213,641 163,488 7