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HomeMy WebLinkAboutRD WATER TOWER ROAD a1 re CONTRACTOR'S BID FOR PUBLIC WORK — FORM 96 F t)1 State Form 52414(R2/2-13)/Form 96(Revised 2013) Prescribed by State Board of Accounts Deis PART I (To be completed for all bids. Please type or print) Date (month, day, year): July 18, 2018 1. Governmental Unit(Owner): City of Jeffersonville 2. County : Clark 3. Bidder(Firm): Dan Cristiani Excavating Co., Inc. Address: 1221 Old Hwy 31E City/State/ZlPcode: Clarksville, IN 47129 4. Telephone Number: (812) 282-9866 5. Agent of Bidder (if applicable): Pursuant to notices given, the undersigned offers to furnish labor and/or material necessary to complete the public works project of City of Jeffersonville, Water Tower Road (Governmental Unit) in accordance with plans and specifications prepared by Jacobi, Toombs & Lanz, Inc. and dated June 29, 2018 for the sum of One Million Eight Hundred Ninety Eight Thousand Nine Hundred Seventy Four $ 1 ,898,974.00 The undersigned further agrees to furnish a bond or certified check with this bid for an amount specified in the notice of the letting. If alternative bids apply, the undersigned submits a proposal for each in accordance with the notice. Any addendums attached will be specifically referenced at the applicable page. If additional units of material included in the contract are needed, the cost of units must be the same as that shown in the original contract if accepted by the governmental unit. If the bid is to be awarded on a unit basis, the itemization of the units shall be shown on a separate attachment. The contractor and his subcontractors, if any, shall not discriminate against or intimidate any employee, or applicant for employment, to be employed in the performance of this contract, with respect to any matter directly or indirectly related to employment because of race, religion, color, sex, national origin or ancestry. Breach of this covenant may be regarded as a material breach of the contract. CERTIFICATION OF USE OF UNITED STATES STEEL PRODUCTS (If applicable) I, the undersigned bidder or agent as a contractor on a public works project, understand my statutory obligation to use steel products made in the United States (I.C. 5-16-8-2). I hereby certify that I and all subcontractors employed by me for this project will use U.S. steel products on this project if awarded. I understand that violations hereunder may result in forfeiture of contractual payments. ACCEPTANCE The above bid is accepted this A 9 day of AJGu9r , 90I , subject to the following conditions: �1E Contrac' g Authority hority ember ` 7,7 PART II (For projects of$150,000 or more— IC 36-1-12-4) Governmental Unit: City of Jeffersonville Bidder(Firm) Dan Cristiani Excavating Co., Inc. Date (month, day, year): July 18, 2018 These statements to be submitted under oath by each bidder with and as a part of his bid. Attach additional pages for each section as needed. SECTION I EXPERIENCE QUESTIONNAIRE 1. What public works projects has your organization completed for the period of one (1)year prior to the date of the current bid? Completion Contract Amount Class of Work Date Name and Address of Owner 467,415.00 Water Main July 2017 Town of Sellersburg 53,650.00 Lift Station June 2017 City of New Albany 1,044,782.00 Sanitary July 2017 Town of Clarksville 1,501,213.00 Roadway Oct 2017 Town of Clarksville 2. What public works projects are now in process of construction by your organization? Expected Contract Amount Class of Work Completion Name and Address of Owner Date 1,737,149.00 Roadway Oct 2018 River Ridge 2,238,696.00 Sanitary Sewer July 2018 City of New Albany 657,560.00 Roadway Nov 2018 City of New Albany 1,664,963.00 Sitework Oct 2018 New Albany Floyd Co. School Corp. 3. Have you ever failed to complete any work awarded to you? No If so, where and why? 4. List references from private firms for which you have performed work. Koetter & Smith, Matthew Smith (812) 923-5111 Steve Klein Development, Steve Klein (812) 246-8865 Koetter Construction, Brian Hill (812) 923-9873 Cardinal Services, Newton Medbury (502) 589-0713 AML, Inc., Bobby Libs (812) 923-3097 SECTION II PLAN AND EQUIPMENT QUESTIONNAIRE 1. Explain your plan or layout for performing proposed work. (Examples could include a narrative of when you could begin work, complete the project, number of workers, etc. and any other information which you believe would enable the governmental unit to consider your bid.) Stake and layout, clear right of way, install erosion control measures, grade for road, install storm sewer, sanitary, water mains, place stone, curb, install sidewalks, asphalt, stripe, seed and straw, sod. 2. Please list the names and addresses of all subcontractors (i.e. persons or firms outside your own firm who have performed part of the work) that you have used on public works projects during the past five (5) years along with a brief description of the work done by each subcontractor. See attached 3. If you intend to sublet any portion of the work, state the name and address of each subcontractor, equipment to be used by the subcontractor, and whether you will require a bond. However, if you are unable to currently provide a listing, please understand a listing must be provided prior to contract approval. Until the completion of the proposed project, you are under a continuing obligation to immediately notify the governmental unit in the event that you subsequently determine that you will use a subcontractor on the proposed project. See attached No bond required 4. What equipment do you have available to use for the proposed project? Any equipment to be used by subcontractors may also be required to be listed by the governmental unit. Backhoes, Landscape loaders, skidsteers, dozers, excavators, forklifts, rollers, crawler loaders, wheel loaders, pan scrapers, motor graders, tractors, trenchers, grinders, directional bore machine, trucks [triaxle dumps, single axle dumps, semi w/dump trailers, semi w/lowboy trailers, roll-off trucks(dumpsters)] 5. Have you entered into contracts or received offers for all materials which substantiate the prices used in preparing your proposal? If not, please explain the rationale used which would corroborate the prices listed. Yes SECTION III CONTRACTOR'S FINANCIAL STATEMENT Attachment of bidder's financial statement is mandatory. Any bid submitted without said financial statement as required by statute shall thereby be rendered invalid. The financial statement provided hereunder to the governing body awarding the contract must be specific enough in detail so that said governing body can make a proper determination of the bidder's capability for completing the project if awarded. • Attachment to Form 96, Section II Plan and Equipment Questionnaire Question 2: Names and addresses of subcontractors used on public works projects Kiesler Electric, LLC, 7010 Kiesler Road, Greenville, IN 47124 Libs Paving Co, Inc., 7001 Atkins Road, Floyds Knobs, IN 47119 Professional Concrete Cutting & Drilling LLC, 15896 E 650 N, Hope, IN 47246 Gotta Go Inc., 1221 Old Hwy 31E, Clarksville, IN 47129 (Trucking) Gotta Go Dumpster Service, Inc., 1221 Old Hwy 31E, Clarksville, IN 47129 Trutest, LLC, P.O. Box 221166, Louisville, KY 40252 Precision Fence Co., Inc., 48 Herndon Lane, Eminence, KY 40019 Eager Beaver Tree Service, Inc., 3630 E. Luther Rd., Floyds Knobs, IN 47119 Kentuckiana Trucking, Inc., P. O. Box 2544, Clarksville, IN 47130-2544 Eberle Enterprises Inc., 17500 Turtle Creek Trail, Louisville, KY 40245 (Curbs) RAME Contracting, LLC, P.O. Box 293, Springfield KY 40069 (Blasting) Question 3: Subcontractors to be used on this job Professional Concrete Cutting& Drilling, 15896 E. County Rd. 650 N., Hope, IN 47246 (Asphalt Sawing) Gotta Go, Inc., 1221 Old Hwy 31 E., Clarksville, IN 47129 (Trucking) Peyton's Barricade & Sign Co., 814 Spring St., Jeffersonville, IN 47130 (Traffic Control) Libs Paving Co, Inc., 7001 Atkins Road, Floyds Knobs, IN 47119 (Asphalt Paving) Gotta Go Dumpster Service, Inc., 1221 Old Hwy 31E, Clarksville, IN 47129 Eberle Enterprises Inc., 17500 Turtle Creek Trail, Louisville, KY 40245 (Curbs) Sharp Construction, 3216 Kettle Bottom Rd.,Nabb, IN 47147 (Sidewalk) Hummel Electric, Inc., 2505 MJM Industrial Dr., Evansville, IN 47715 (Traffic Signal) Vissing's Transport& Seeding, LLC, 10226 Westport Rd., Marysville, IN 47141 Trutest, LLC, P.O. Box 221166, Louisville, KY 40252 (Pipe Testing & Video) Mt. Carmel Stabilization Group, Inc., 1611 College Dr., Mount Carmel, IL 62863 RAME Contracting, LLC, P.O. Box 293, Springfield KY 40069 (Blasting) No bonds required SECTION IV CONTRACTOR'S NON — COLLUSION AFFIDAVIT The undersigned bidder or agent, being duly sworn on oath, says that he has not, nor has any other member, representative, or agent of the firm, company, corporation or partnership represented by him, entered into any combination, collusion or agreement with any person relative to the price to be bid by anyone at such letting nor to prevent any person from bidding nor to include anyone to refrain from bidding, and that this bid is made without reference to any other bid and without any agreement, understanding or combination with any other person in reference to such bidding. He further says that no person or persons, firms, or corporation has, have or will receive directly or indirectly, any rebate, fee, gift, commission or thing of value on account of such sale. SECTION V OATH AND AFFIRMATION I HEREBY AFFIRM UNDER THE PENALTIES FOR PERJURY THAT THE FACTS AND INFORMATION CONTAINED IN THE FOREGOING BID FOR PUBLIC WORKS ARE TRUE AND CORRECT. Dated at Clarksville, IN this 18th day of July , 2018 Dan Cristiani Excavating Co., Inc. (Name of Organization) By Chris Jackson, Vice President (Title of Person Signing) ACKNOWLEDGEMENT STATE OF Indiana ss COUNTY OF Clark Before me, a Notary Public, personally appeared the above-named Chris Jackson and swore that the statements contained in the foregoing document are true and correct. Subscribed and sworn to before me this 18th day of July , 2018 egark_ew Notary Public My Commission Expires: 12/08/2024 ++��++��,, DANIEL SCHILMILLER `�e.' t[psiIt, Notary Public, State of Indiana Countyof Residence: Floyd :e°'""�; 1.1 Floyd County N 694082 M Commission Expires f�''�",°„;;,,, December 08, 2021 O co U N M a N 0 Q NHco 0 11 w al (0 0 Z5 ci CC u. LJ- (:i 0 o o UY) cp u_ o c)U 0 0 U 0 m � a)( O > am Nv > C to Z CV CO L 0 (Q X co 0 2 E W E w N °' ZIm c a Cr) as 1, N '� Q Y r 0 O N d 0 C� c co a CO N N • >. C) a) ami U o U 0 LEQ 13.0 BID FORMS NOTE: INSERT AND ATTACH TO FORM 96, DO NOT USE THE CONTRACTOR'S BID SECTION ON FORM 96. BE SURE TO SIGN BID, NOTARIZE BID AND EXECUTE NON-COLLUSION AFFIDAVIT. CONTRACTOR'S BID FORM JEFFERSONVTT.T,E REDEVELOPMENT COMMISSION 500 QUARTERMASTER COURT JEFFERSONVILLE, INDIANA 47130 RE: WATER TOWER ROAD PROJECT JOB NO. 17167 Gentlemen: We submit, herewith, our sealed proposal to furnish all necessary labor, material and equipment to construct the above captioned project, in accordance with the subject plans and specifications at the unit prices listed herein. A-205 S:\projects\17167-Water Tower Station Road\Specifications\Section A-2.doc BID FOR: WATER TOWER ROAD PROJECT JOB NO. 17167 CITY OF JEFFERSONVILLE CLARK COUNTY, INDIANA RESPECTFULLY SUBMITTED, Dan Cristiani Excavating Co . , Inc . NAME OF FIRM PERSON Chris Jackson , Vice President PERSON A-1-1-txj ATTEST July 18 , 2018 DATE Accepted this Sint day of k&..,yf , 2018 REDEVELOPMENT COMMISSION CITY O JEFFERSONVILL ,,INDJNA onty Snelling res' A-206 S:\projects\17167-Water Tower Station Road\Specifications\BID FOR.doc City of Jeffersonville Job No. 17167 Water Tower Road Revised 7-17-18 BID FORM DIVISION A ITEM DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST INSTALLED Al Mobilization&Demobilization 1 LS $ 31,000.70 $ 31,000.70 A2 Construction Engineering and Stakeout 1 LS $ 14,917.00 $ 14,917.00 A3 Clearing of Right-of-Way 1 LS $ 23,974.00 $ 23,974.00 A4 Maintenance of Traffic 1 LS $ 17,795.00 $ 17,795.00 A5 Erosion Control 1 LS $ 12,035.00 $ 12,035.00 A6 Common Excavation 5,800 CYS $ 27.55 $ 159,790.00 A7 HMA Surface,Type B 740 TON $ 76.70 $ 56,758.00 A8 HMA Intermediate,Type B 1,230 TON $ 55.70 $ 68,511.00 A9 HMA Base,Type B 1,970 TON $ 55.70 $ 109,729.00 A10 QC/QA HMA 4,76,Surface,9.5mm 165 TON $ 136.00 $ 22,440.00 All QC/QA HMA 4,76,Intermediate, 19.0mm 275 TON $ 71.30 $ 19,607.50 Al2 QC/QA HMA 4,76,Base, 19.0mm 545 TON $ 71.30 $ 38,858.50 Al3 Compacted Aggregate,No.53,Base 4,020 TON $ 11.75 $ 47,235.00 A14 Ex.Driveway Removal Along Line'B' 175 SYS $ 24.00 $ 4,200.00 A15 Concrete Curb and Gutter 3,540 LFT $ 16.80 $ 59,472.00 Al6 6"Perforated Underdrain 2,265 LFT $ 10.50 $ 23,782.50 A17 Subgrade Treatment,Type 1B 10,350 SYS $ 6.35 $ 65,722.50 Al8 Subgrade Treatment,Type IC 2,000 SYS $ 11.40 $ 22,800.00 A19 36"Storm Sewer Pipe 830 LFT $ 84.20 $ 69,886.00 A20 18"Storm Sewer Pipe 1,120 LFT $ 38.75 $ 43,400.00 A21 12"Storm Sewer Pipe 390 LFT $ 28.60 $ 11,154.00 A22 36"Concrete Headwall 1 EA $ 1,492.00 $ 1,492.00 A23 36"End Section 1 EA $ 1,172.00 $ 1,172.00 A24 18"End Section 2 EA $ 586.00 $ 1,172.00 A25 Storm Manhole Type C 8 EA $ 3,205.00 $ 25,640.00 A26 Modified INDOT Inlet Type J 8 EA $ 1,761.00 $ 14,088.00 A27 Modified INDOT Inlet Type M 11 EA $ 1,761.00 $ 19,371.00 A28 Modified INDOT Inlet Type C 4 EA $ 2,098.00 $ 8,392.00 A29 INDOT Type R-13 Structure 1 EA $ 6,771.00 $ 6,771.00 A30 Modified INDOT Inlet Type E 3 EA $ 1,288.00 $ 3,864.00 A31 39"x24"Reinforced Concrete Box Culvert 5 LFT $ 852.00 $ 4,260.00 A32 Linear Ditch Grading 860 LFT $ 10.60 $ 9,116.00 A33 Revetment Rip-Rap, 18" 12 SYS $ 48.00 $ 576.00 Pavement Message Marking,Lane Indication A34 Arrow 22 EA $ 102.00 $ 2,244.00 A35 Transverse Markin s,Stop Line,24" 115 LFT $ 10.00 $ 1,150.00 A36 Line,Thermoplastic,Solid,White,4" 1,160 LFT $ 1.12 $ 1,299.20 A37 Line,Thermoplastic,Broken,White,4" 185 LFT $ 1.12 $ 207.20 A38 Line,Thermoplastic,Solid,Yellow,4" 3,010 LFT $ 1.12 $ 3,371.20 A39 Line,Thermoplastic,Broken,Yellow,4" 510 LFT $ 1.12 $ 571.20 A40 Line,Thermoplastic,Solid,White,8" 465 LFT $ 4.50 $ 2,092.50 A41 Transverse Markings,Crosswalk Line,White,6" 420 LFT $ 3.60 $ 1,512.00 New Sheet Sign on New Post(Type I, A42 Reinforced Anchor Base) 5 EA $ 267.00 $ 1,335.00 A43 Sod 2,400 SYS $ 4.00 $ 9,600.00 A44 Mulched Seeding 6,000 SYS $ 0.35 $ 2,100.00 A45 Traffic Signal,Complete 1 LS $ 33,565.00 $ 33,565.00 A46 Asphalt Price Adjustment 1 LS $0.00 $0.00 A47 Unidentified Rock Removal 100 CYS $ 160.00 $ 16,000.00 A48 Undercut/Stabilization of Unsuitable Subgrade 1,360 CYS $ 41.00 $ 55,760.00 A49 Field Office Trailer 9 MON $ 1,600.00 $ 14,400.00 A50 Unidentified Conflict Contingency 1 LS $ 50,000.00 $ 50,000.00 SUBTOTAL=Total of Division A Items= $ 1,214,189.00 A-207 City of Jeffersonville Job No. 17167 Water Tower Road Revised 7-17-18 BID FORM DIVISION B ITEM DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL COST INSTALLED B1 Sanitary Manhole Type B 7 EA $ 3,743.00 $ 26,201.00 B2 15"PVC Sanitary Sewer 1,450 LFT $ 124.10 $ 179,945.00 B3 8"PVC Sanitary Sewer 520 LFT $ 92.80 $ 48,256.00 B4 Core Into and Connect to Ex. Sanitary Manhole 1 EA $ 11,454.00 $ 11,454.00 B5 Sanitary Sewer Closed Circuit Television Inspection 1 LS $ 1,700.00 $ 1,700.00 B6 4"Thick Concrete Sidewalk 1,965 SYS $ 46.10 $ 90,586.50 B7 Concrete Curb Ramp 6 EA $ 1,600.00 $ 9,600.00 B8 2"Lighting Conduit 3,100 LFT $ 5.50 $ 17,050.00 B9 Conduit Bank-3-6"Conduit 1,815 LFT $ 23.20 $ 42,108.00 B10 Separate 6"PVC Conduit 1,700 LFT $ 9.40 $ 15,980.00 B11 18"PVC Casing 425 LFT $ 98.40 $ 41,820.00 B12 12"Water Main 2,050 LFT $ 49.20 $ 100,860.00 B13 12"Water Valve 15 EA $ 2,454.00 $ 36,810.00 B14 12"x12"x12"Tee for Water Main 4 EA $ 854.00 $ 3,416.00 B15 12"Cross for Water Main 1 EA $ 1,014.00 $ 1,014.00 B16 12"x12"x6"Tee for Water Main 5 EA $ 554.00 $ 2,770.00 B17 12"x10"Tapping Sleeve,Wet Tap 1 LS $ 6,565.00 $ 6,565.00 B18 10"Inserta Valve on Ex.Water Main 2 EA $ 15,450.00 $ 30,900.00 B19 Fire Hydrant Assembly,6"Leader with Valve 5 EA $ 3,549.90 $ 17,749.50 SUBTOTAL=Total of Division B Items= $ 684,785.00 TOTAL BID PRICE=SUBTOTAL DIVISION A+SUBTOTAL DIVISION B= $ 1,898,974.00 Contractor: Dan Cristiani Excavating Co.,Inc. Acknowledge Addendums 1,2,3 A-208 CONTRACTORS STATEMENT OF UNDERSTANDING OF UTILITY CONFLICTS & ISSUES By submitting this bid, we understand the challenges and issues involved with the potential conflict with existing utilities during the execution of this project. We acknowledge that the location of the utilities shown may not be accurate; however, our bid takes this into consideration and we understand that no additional compensation will be made for working around or near a utility that is not shown on the plans or that is shown incorrectly. Any changes in the plans due to utilities shall be paid for based on the unit prices provided on the bid form. Additional contract days may be awarded if deemed necessary by the OWNER. Our bid price takes into consideration the costs required to coordinate the relocation of any and all affected utilities, and the potential interruption and delays of operation in constructing this project. However, it is understood that we, the CONTRACTOR, will not be held responsible for schedule delays attributable to a given utility company's lack of cooperation or completion of relocation. Water Tower Road PROJECT NAME SU o MITTEN:` Dan Cristiani Excavating Co . , Inc . CONTRACTOR Chris Jackson, Vice President BY: (Printed Name and Title) July 18 , 2018 DATE S:\projects\17167-Water Tower Station Road\Specifications\Utility Conflicts.doc A-209 PROVISIONS REGARDING EMPLOYMENT OF UNAUTHORIZED ALIENS As required by IC 22-5-1.7, the Contractor affirms under the penalties of perjury that: A. It does not knowingly employ an unauthorized alien. B. The Contractor shall enroll in and verify the work eligibility status of all its newly hired employees through the E-Verify program as defined in IC 22-5-1.7-3. The Contractor is not required to participate should the E-Verify program cease to exist. C. The Contractor shall not knowingly employ or contract with an unauthorized alien. The Contractor shall not retain an employee or contract with a person that the Contractor subsequently learns is an unauthorized alien. D. The Contractor shall require its subcontractors who perform work under this Contract to certify to the Contractor that the subcontractor does not knowingly employ or contract with an unauthorized alien and that the subcontractor has enrolled and is participating in the E-Verify program. The Contractor agrees to maintain this certification throughout the duration of the term of a contract with a subcontractor. E. The Owner may terminate for default if the Contractor fails to cure a breach of this provision no later than thirty (30) days after being notified by the Owner. I, on behalf of myself or the person being awarded this contract, hereby certify that I have read Indiana Code 5-22-16.5 in its entirety, as enacted and amended and further certify that neither I nor the person being awarded this contract am engaged in investment activities in Iran as defined in Indiana Code 5-22-16.5 as enacted and amended. NED Chris Jackson PRINTED NAME Vice President TITLE A-210 1111 Jacobi, Toombs &L Lanz, Inc. Consulting Engineers &Land Surveyors 1 3 r do(e,j„, s , 2 , July 12, 2018 C����)Pdge +� ADDENDUM NO. 1 Water Tower Road Job No. 17167 The following revisions are hereby incorporated: 1. A sign-in sheet from the July 10, 2018 Pre-Bid Meeting has been included as part of this addendum. 2. The bid form has been separated, for clerical purposes only,into Division A Items and Division B Items. This is due to the fact that the project has multiple sources of funding. The bid will still be awarded based on the total of all items (Division A Items + Division B Items). The revised bid form has been included as part of this addendum. An excel version of the bid form has also been provided as part of this addendum. This electronic file is being provided as a convenience. Please note that it is the responsibility of the bidder to check all math and confirm their bid price is correct. Jacobi,Toombs and Lanz, Inc.is not responsible for any errors that may exist within the spreadsheet. 3. The Contract Completion date has been changed to June 30,2019. The Owner is still in the process of obtaining the INDOT Right-of-Way Permit. The approximate anticipated Notice to Proceed date is September 3,2018, once all permitting has been approved. In accordance with the contract documents, construction should begin within ten (10) calendar days of issuance of the Notice to Proceed. The Contractor shall be required to commence construction activities within this period, and shall not vacate the project while construction conditions are favorable. Only in the event of unsuitable weather shall construction activities be halted. If the Contractor vacates the construction project for a period longer than ten (10) work days,not due to inclement weather, the Owner shall retain the right to charge liquidated damages. The Contractor shall acknowledge receipt of this Addendum No. 1 in writing on all bids turned in. All questions must be received by 5:00 p.m. on Monday, July 16, 2018. No questions will be addressed after that time. Sincerely, JACOBI,TOOM S AND LANZ,INC. i nosh Darby,P.E. 1829 E.Spring Street,Suite 201 124 Bell Ave 1060 N.Capitol Avenue,Ste E360 1400 South 1"Street New Albany,IN 47150 Clarksville,I N 47129 Indianapolis,IN 46204 Louisville,KY 40208 812-945-9585 812-945-9585 317-829-3474 502-583-5994 812-945-6656 Fax 812-945-6656 Fax 317-829-3473 Fax 502-583-7321 Fax www.jtleng.coni 5\p cr«ts\171 67-Water Tower 5tat,o„Road\Documents\I 7 187 Addendum I.doc ■ Jacobi, Toombs &L Lanz, Inc. Consulting Engineers& Land Surveyors July 17, 2018 ADDENDUM NO. 2 Water Tower Road Job No. 17167 The following revisions are hereby incorporated: 1. For bidding purposes,it should be assumed that all existing water utilities within this project contain asbestos cement (transite) pipe. The Contractor shall follow all applicable Local, State and Federal regulations with respect to repairing Water Distribution Facilities that contain asbestos cement (transite) pipe. All necessary considerations associated with cutting, connecting to, and removing sections of asbestos cement(transite) pipe shall be included in the Contractor's bid. 2. The bid quantity for Field Office Trailer has been revised to a total of 9 Months. A revised bid form has been included as part of this addendum. For bidding purposes,it can be assumed that the Field Office Trailer will be located on the south side of the proposed Line 'A', at approx. Sta. 13+00,75'Lt. The Owner shall assist in obtaining written permission from the property owner for temporary storage of the Field Office Trailer on private property. 3. The new storm sewer is not required to be inspected by CCTV. Only the sanitary sewer is required to be CCTV inspected. The unit price bid item for Sanitary Sewer Closed Circuit Television Inspection has been moved to Division B. A revised bid form has been included as part of this addendum. 4. The Water Main Fitting shown at Sta. 12+25, 52'Lt. shall be a 12" Cross, not a 12"Tee as identified on the plans. A unit price bid item has been added for 12" Cross. A revised bid form has been included as part of this addendum. 5. All Concrete Curb and Gutter installed as part of this project shall match the detail for "Modified Combined Concrete Curb and Gutter"included in the plans. 6. The Contractor shall be responsible for verifying all structure dimensions and modifying based on incoming pipe sizes and angles. All structures shall be considered"Modified" versions of INDOT standard structures. No additional compensation will be made if the required structure dimensions are larger than the INDOT standard dimensions for that structure. 1829 E.Spring Street,Suite 201 124 Bell Ave 1060 N.Capitol Avenue,Ste E360 1400 South 1'Street New Albany,IN 47150 Clarksville,I N 47129 Indianapolis,IN 46204 Louisville,KY 40208 812-945-9585 812-945-9585 317-829-3474 502-583-5994 812-945-6656 Fax 812-945-6656 Fax 317-829-3473 Fax 502-583-7321 Fax • www.jtleng.coni 5: pr.je,,\17 i o7-Water Tower 5ta tion Road\Documents\171 67,gddendum2.doc ■ Jacobi, Toombs &L Lanz, Inc. Consulting Engineers& Land Surveyors July 17,2018 ADDENDUM NO. 3 Water Tower Road Job No. 17167 The following revisions are hereby incorporated: 1. Subgrade Treatment Type IB for this project shall be in accordance with the current INDOT standards and specifications. All testing/ soil-chemical modification studies associated with chemical modifier selection shall be at the expense of the Contractor and shall be included in the Contractor's bid. The determination of chemical modifiers to be utilized shall be made based on the above referenced testing/ studies, and no additional compensation shall be made for cement vs.lime modification. The Contractor shall acknowledge receipt of this Addendum No. 3 in writing on all bids turned in. No further questions will be addressed. Sincerely, JACOBI,TOOMBS AND LANZ, INC. 7 Josh Darby,P.E. 1829 E.Spring Street,Suite 201 124 Bell Ave 1060 N.Capitol Avenue,Ste E360 1400 South 1°Street New Albany,IN 47150 Clarksville,I N 47129 Indianapolis,IN 46204 Louisville,KY 40208 812-945-9585 812-945-9585 317-829-3474 502-583-5994 812-945-6656 Fax 812-945-6656 Fax 317-829-3473 Fax 502-583-7321 Fax www.ftleng.com 5:\pr jeers\I 7I 07-Waco.Tow«5tatton Road\Documrnts\I 7I 67 Addondum;doe GREATAMERICAN GREAT AMERICAN INSURANCE COMPANY INSURANCE GROUP OHIO uIO BID BOND Any singular reference to Contractor,Surety,Owner or other party shall be considered plural where applicable. CONTRACTOR: SURETY: (Name, legal status and address) (Name, legal status and principal place of business): DAN CRISTIANI EXCAVATING CO., INC. GREAT AMERICAN INSURANCE COMPANY 1221 OLD HIGHWAY 31 E 301 EAST 4TH STREET CLARKSVILLE, IN 47129 CINCINNATI, OH 45202-4201 OWNER: (Name, legal status and address) JEFFERSONVILLE REDEVELOPMENT COMMISSION CITY OF JEFFERSONVILLE 500 QUARTERMASTER COURT JEFFERSONVILLE, IN 47130 BOND AMOUNT: $ FIVE PERCENT(5%)OF THE AMOUNT OF THE BID---- PROJECT: (Name, location or address, and Project number, if any) WATER TOWER ROAD The Contractor and Surety are bound to the Owner in the amount set forth above, for the payment of which the Contractor and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, as provided herein. The conditions of this Bond are such that if the Owner accepts the bid of the Contractor within the time specified in the bid documents, or within such time period as may be agreed to by the Owner and Contractor, and the Contractor either(1)enters into a contract with the Owner in accordance with the terms of such bid, and gives such bond or bonds as may be specified in the bidding or Contract Documents, with a Surety admitted in the jurisdiction of the Project and otherwise acceptable to the Owner, for the faithful performance of such Contract and for the prompt payment of labor and material furnished in the prosecution thereof; or(2) pays to the Owner the difference, not to exceed the amount of this Bond, between the amount specified in said bid and such larger amount for which the Owner may in good faith contract with another party to perform the work covered by said bid, then this obligation shall be null and void, otherwise to remain in full force and effect. The Surety hereby waives any notice of an agreement between the Owner and Contractor to extend the time in which the Owner may accept the bid. Waiver of notice by the Surety shall not apply to any extension exceeding sixty (60) days in the aggregate beyond the time for acceptance of bids specified in the bid documents, and the Owner and Contractor shall obtain the Surety's consent for an extension beyond sixty(60)days. If this Bond is issued in connection with a subcontractor's bid to a Contractor, the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. When this Bond has been furnished to comply with a statutory or other legal requirement in the location of the Project, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirements shall be deemed incorporated herein. When so furnished, the intent is that this Bond shall be construed as a statutory bond and not as a common law bond. Signed and sealed this 18TH day of JULY 2018 / // DAN CRISTIANI EXCAVATING C041C. (Principal) (Seal) (Witness) (Title) GTA C= j ^�' /,? MPANea/) , ir (Witness) DIANE L. PHEL (attorney-in- - , THOMAS J. MITCHELL The Company executing this bond vouches that this document conforms to America stitute of Architects Document A310-2010 Edition • GREAT AMERICAN INSURANCE COMPANY® Administrative Office: 301 E 4TH STREET • CINCINNATI,OHIO 45202 • 513-369-5000 • FAX 513-723-2740 The number of persons authorized by this power of attorney is not more than ELEVEN No.0 20768 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That the GREAT AMERICAN INSURANCE COMPANY,a corporation organized and existing under and by virtue of the laws of the State of Ohio,does hereby nominate,constitute and appoint the person or persons named below,each individually if more than one is named,its true and lawful attorney-in-fact,for it and in its name,place and stead to execute on behalf of the said Company,as surety,any and all bonds, undertakings and contracts of suretyship,or other written obligations in the nature thereof;provided that the liability of the said Company on any such bond, undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of Power STEVEN M.GARRETT DIANE L.PHELPS ALL OF ALL WILLIAM A.KANTLEHNER,III CHRISTOPHER E.VON ALLMEN LOUISVILLE, KENTUCKY $100,000,000 THOMAS J.MITCHELL ANDREW G.WINDHORST,JR. ROGER A.NEAL ROSS E.JOHNSON RYAN P.MITCHELL ANDREA CORTES JEFFREY A.BROWN This Power of Attorney revokes all previous powers issued on behalf of the attorney(s)-in-fact named above. IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seal hereunto affixed this 18TH day of MARCH 2016 . Attest GREAT AMERICAN INSURANCE COMPANY QV��p ;MAq/� 4f' Ae44.4 Assistant Secretary Divisional Senior Vice President STATE OF OHIO,COUNTY OF HAMILTON-ss: DAVID C.KITCHEN(877-377-2405) On this 18TH day of MARCH , 2016 ,before me personally appeared DAVID C. KITCHIN,to me known,being duly sworn,deposes and says that he resides in Cincinnati,Ohio,that he is a Divisional Senior Vice President of the Bond Division of Great American Insurance Company,the Company described in and which executed the above instrument;that he knows the seal of the said Company;that the seal affixed to the said instrument is such corporate seal;that it was so affixed by authority of his office under the By-Laws of said Company,and that he signed his name thereto by like authority. Susan A.Kohorst Notary Plbil'N,Stab Of Ctio Cyt.. „,, • My Codniesbn ExpIres 05411-2020 This Power of Attorney is granted by authority of the following resolutions adopted by the Board of Directors of Great American Insurance Company by unanimous written consent dated June 9,2008. RESOLVED: That the Divisional President,the several Divisional Senior Vice Presidents,Divisional Vice Presidents and Divisonal Assistant Vice Presidents,or any one of them,be and hereby is authorized,from time to time,to appoint one or more Attorneys-in-Fact to execute on behalf of the Company, as surety,any and all bonds,undertakings and contracts of suretyship,or other written obligations in the nature thereof to prescribe their respective duties and the respective limits of their authority;and to revoke any such appointment at any time. RESOLVED FURTHER: That the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secretary of the Company may be affixed by facsimile to any power of attorney or certificate of either given for the execution of any bond,undertaking,contract of suretyship, or other written obligation in the nature thereof such signature and seal when so used being hereby adopted by the Company as the original signature of such officer and the original seal of the Company,to be valid and binding upon the Company with the same force and effect as though manually affixed. CERTIFICATION I,STEPHEN C.BERAHA,Assistant Secretary of Great American Insurance Company,do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of June 9,2008 have not been revoked and are now in full force and effect. Signed and sealed this18TH day of JULY ' 2018 ensu e 3 tv, Assistant Secretary S1029AF(06/15) Dan Cristiani Excavating Co.,Inc. (A Wholly-Owned Subsidiary of DCEC Holding Co.,Inc.) Financial Statements Years Ended December 31,2017 and 2016 Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Table of Contents Years Ended December 31,2017 and 2016 Page Independent Auditor's Report 1 -2 Financial Statements Balance Sheets 3 Statements of Income 4-5 Statements of Changes in Stockholder's Equity 6 Statements of Cash Flows 7 Notes to Financial Statements 8 - 15 NE1311 CPAs & ADVISORS Independent Auditor's Report To the Board of Directors and Stockholders of DCEC Holding Co.,Inc. (Wholly Owns Dan Cristiani Excavating Co.,Inc.) We have audited the accompanying financial statements of Dan Cristiani Excavating Co., Inc. (the "Corporation"), a wholly-owned subsidiary of DCEC Holding Co., Inc. (the "Parent Company"),which comprise the balance sheets as of December 31,2017 and 2016, and the related statements of income,changes in stockholder's 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. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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 auditor's 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 audit opinion. Kentucky MCM CPAs &Advisors LLP P( F 812.670.3400 Indiana 702 North Shore Drive I Suite 500 Jeffersonville, IN 47130 www.mcmcpa.com I 888.587.1719 Ohio A Member of PrimeGlobal-An Association of Independent Accounting Firms Independent Auditor's Report(Continued) Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Dan Cristiani Excavating Co., Inc. as of December 31, 2017 and 2016, 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. //7//1(411414 t/'fir/s•4s 4.41 Jeffersonville, Indiana April 23,2018 -2- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Balance Sheets December 31,2017 and 2016 2017 2016 Assets Current Assets Cash $ 2,282,262 $ 1,857,225 Contracts receivable,net 3,294,618 2,839,705 Costs and estimated earnings in excess of billings 428,489 196,876 Inventory 46,000 42,000 Prepaid expenses and other current assets 119,298 68,810 Total Current Assets 6,170,667 5,004,616 Property and Equipment Construction equipment and vehicles 11,519,190 10,577,144 Leasehold improvements 49,502 49,502 Office equipment 78,710 78,710 11,647,402 10,705,356 Less: accumulated depreciation and amortization (7,024,714) (6,319,184) Property and Equipment,net 4,622,688 4,386,172 Total Assets $ 10,793,355 $ 9,390,788 Liabilities and Stockholder's Equity Current Liabilities Current portion of long-term debt $ 241,581 $ 354,163 Accounts and contracts payable 520,175 441,739 Accrued payroll and payroll taxes 121,859 83,628 Accrued expenses 41,677 77,161 Billings in excess of costs and estimated earnings 219,653 202,493 Deferred revenue - 20,979 Total Current Liabilities 1,144,945 1,180,163 Deferred compensation liability 310,030 310,030 Note payable to shareholder - 490,000 Long-term debt,less current portion 327,608 368,662 Total Liabilities 1,782,583 2,348,855 Stockholder's Equity Common stock;no par value; 1,000 shares authorized; 100 shares issued and outstanding 12,093 12,093 Retained earnings 8,998,679 7,029,840 Total Stockholder's Equity 9,010,772 7,041,933 Total Liabilities and Stockholder's Equity $ 10,793,355 $ 9,390,788 See accompanying notes. -3- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Statements of Income Years Ended December 31,2017 and 2016 2017 2016 Revenues Construction and excavating $ 21,212,287 $ 19,680,873 Trucking 1,470,466 965,807 Total Revenues 22,682,753 20,646,680 Direct Costs Materials 5,343,906 5,240,986 Wages 2,666,288 2,619,768 Subcontractors 6,019,631 4,617,637 Depreciation and amortization 1,240,225 1,037,377 Repairs and maintenance 757,029 711,504 Insurance 546,906 576,034 Gas,oil and fuel 374,019 377,696 Direct rent expense 225,244 309,072 Permits,bonds and plans 93,122 40,400 Landfill fees 26,192 16,341 Payroll taxes 196,226 195,107 Trucking costs 43,329 26,370 Employee retirement 44,720 50,558 Other direct costs 60,912 64,645 Total Direct Costs 17,637,749 15,883,495 Gross Profit 5,045,004 4,763,185 Operating Expenses Salaries 1,228,732 767,540 Office expense 110,082 109,539 Rent 30,000 30,000 Telephone and utilities 42,438 48,257 Payroll taxes 88,014 55,792 Legal and professional 74,130 52,157 Depreciation and amortization 5,414 4,372 Advertising 47,148 47,430 Employee retirement 33,459 23,252 Charitable contributions 16,194 4,220 Bad debt(recovery)expense (251) 1,706 Other operating expenses 26,016 25,829 Total Operating Expenses 1,701,376 1,170,094 Income from Operations $ 3,343,628 $ 3,593,091 See accompanying notes. -4- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Statements of Income(Continued) Years Ended December 31,2017 and 2016 2017 2016 Income from Operations (Balance Carried Forward) $ 3,343,628 $ 3,593,091 Other Income(Expense) Other nonoperating income 14,860 65,984 Interest income 4,779 6,008 Interest expense (15,373) (15,411) Gain on sale of equipment 264,240 338,543 Total Other Income,net 268,506 395,124 Net Income $ 3,612,134 $ 3,988,215 See accompanying notes. -5- ,-. tip M Vl M kr, N N M N sc ch --i N N y O N 0000 N - O— FO-' C O O O O U W VO M M l--- M (T- O 00 69 69 .-. .-. O kr) kr) O v1 01 ell bA N N 0000 ---- N VO Z S". N 00 O C N_ M 00 O00 N N t/ w M M N M — 00- ......, W 9 6R M M M 01 C1 01O O C 6R 64 O I O U 0 OI OI O a) a)5 z 0 U c B. Ts 04 o W xrA �•. N d ^O To u U O 05 xI A t-, O © 2N U ,t, (4 „. Le-4 ,40 N to CSS = M 44-4 ,. i. co O O C w, 0 N N N vi 0 C. CL M M M O u v, ca 0 4. a'"i 0 A E v E v, E C S o b Ua> U O c"" c) 0 O O ct coi 7a C. C 0 Q 0 Q E O Cij W U U v OV Cel3ct es � ct z et 0 a) z • Q A :� v5as al co 00 Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Statements of Cash Flows Years Ended December 31,2017 and 2016 2017 2016 Cash Flows from Operating Activities Net income $ 3,612,134 $ 3,988,215 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,245,639 1,041,749 Gain on sale of equipment (264,240) (338,543) Accrued interest on note to shareholder - 4,312 Bad debt expense(recovery) (251) 1,706 (Increase)decrease in: Contracts receivable (454,662) (155,074) Costs and estimated earnings in excess of billings (231,613) 233,688 Inventory (4,000) 88,528 Prepaid expenses and other current assets (50,488) 17,337 Increase(decrease)in: Accounts and contracts payable (93,343) (407,613) Accrued payroll and payroll taxes 38,231 (19,189) Accrued expenses (35,484) 31,510 Billings in excess of costs and estimated earnings 17,160 127,650 Deferred revenue (20,979) (1,383) Deferred compensation liability - (25,000) Net Cash Provided by Operating Activities 3,758,104 4,587,893 Cash Flows from Investing Activities Proceeds from the sale of equipment 363,328 383,897 Purchases of equipment (1,201,039) (1,468,628) Net Cash Used in Investing Activities (837,711) (1,084,731) Cash Flows from Financing Activities Payments on long-term debt (362,061) (604,462) Proceeds from long-term debt - 45,291 Distributions (2,133,295) (2,530,615) Net Cash Used in Financing Activities (2,495,356) (3,089,786) Increase in Cash 425,037 413,376 Cash,Beginning of Year 1,857,225 1,443,849 Cash,End of Year $ 2,282,262 $ 1,857,225 Supplemental Schedule of Noncash Investing and Financing Activities Trade-in values received for equipment sold $ 137,013 $ 193,149 Fixed assets in accounts payable 171,779 - Equipment purchased with debt 208,425 620,995 Distributions accrued but not paid - 490,000 Supplementary Information Interest paid $ 19,831 $ 10,742 See accompanying notes. -7- • Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Notes to Financial Statements Years Ended December 31,2017 and 2016 Note A-Nature of Organization and Operations Dan Cristiani Excavating Co., Inc. (the "Corporation"), a wholly-owned subsidiary of DCEC Holding Co., Inc. (the "Parent Company"), is engaged in construction and excavating services primarily in the Southern Indiana and Louisville, Kentucky areas. The majority of the business is excavating for streets, sewer lines, storm sewers, and commercial site preparation. The work is performed primarily under contracts, including: cost-plus-fee contracts, fixed-price contracts, and fixed-price contracts modified by incentive and penalty provisions. Length of the contracts varies,but is typically less than one year. Note B-Summary of Significant Accounting Policies 1. Basis of Accounting: The financial statements of the Corporation are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"), as established by the Financial Accounting Standards Board ("FASB") Accounting Standards Codification("ASC"). 2. Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The general nature of the Corporation's construction business involves making significant estimates and assumptions in the normal course of business relating to its construction contracts, and among other things,the one-of-a-kind nature of most of its projects, long-term duration of its contract cycle and the type of contract utilized. The most significant estimates with regard to these financial statements relate to the estimating of total forecasted construction contract revenue, cost and profits in accordance with accounting for uncompleted contracts. 3. Cash Equivalents: The Corporation considers all short-term investments with an original maturity of three months or less to be cash equivalents. There were no cash equivalents at December 31,2017 and 2016. 4. Contracts Receivable: Contracts receivable are recorded when invoices are issued and are presented in the Balance Sheets net of the allowance for uncollectible contracts receivable. Contracts receivable are allowed for when they are determined to be uncollectible. The Company uses historical experience, coupled with a review of the current status of existing receivables when valuing contracts receivable. The allowance for uncollectible contracts receivable was $2,000 at December 31, 2017 and 2016 and is deducted against contracts receivable to properly reflect net realizable value. 5. Inventory: The Corporation carries inventory consisting of equipment parts and supplies. Pursuant to the adoption of ASU 2015-11 (see Note B.10), inventory is stated at the lower of cost or net realizable value using the first in,first out(FIFO)method. 6. Property and Equipment: Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred; renewals or betterments are capitalized. Gain or loss on retirement or disposition of assets is credited or charged to operations, and respective costs and accumulated depreciation are eliminated from the accounts.Depreciation is provided using the straight-line and declining-balance methods over the shorter of the lease term or the estimated useful lives of the assets. The estimated useful lives are 5 - 10 years for construction equipment and vehicles, 5 - 15 years for leasehold improvements,and 3 - 10 years for office equipment. -8- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Notes to Financial Statements(Continued) Years Ended December 31,2017 and 2016 Note B-Summary of Significant Accounting Policies (Continued) 6. Property and Equipment (Continued): The Corporation periodically reviews the carrying values of property and equipment for impairment whenever adverse events or changes in circumstances indicate the carrying value of the asset may not be recoverable. There was no impairment of property and equipment at December 31,2017 and 2016. 7. Contract Revenue and Cost Recognition: Revenues from fixed-price construction contracts are recognized on the percentage-of-completion method, measured by the percentage of cost incurred to date to estimated total cost for each contract. This method is used because management considers total cost to be the best available measure of progress on the contracts. Because of inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change within the near term. Contract costs include direct material, labor, and equipment costs and those indirect costs related to contract performance such as indirect labor, supplies, and other costs. Selling, general, and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in estimated profitability resulting from job performance,job conditions,contract penalty provisions, claims, change orders and settlements are accounted for as changes in estimates in the current period. Profit incentives are included in revenues when their realization is reasonably assured. The asset, "Costs and estimated earnings in excess of billings," represents revenues recognized in excess of amounts billed on uncompleted contracts. The liability, "Billings in excess of costs and estimated earnings," represents billings in excess of revenues recognized on uncompleted contracts. Revenue for time and materials work is recognized as work is performed and invoiced to the customer. Management has concluded the difference between the recognition of revenue related to this work on the percentage-of-completion method and recognition based on progress billings is insignificant to the financial statements. 8. Advertising: Advertising costs are expensed during the period they are incurred. Advertising expense was $47,148 and$47,430 for the years ended December 31,2017 and 2016,respectively. 9. Subsequent Events: The Corporation has evaluated events and transactions for potential recognition or disclosure through the date of the Independent Auditor's Report, the date the financial statements were available to be issued. 10. Recently Issued Accounting Pronouncements: In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard also includes expanded disclosure requirements that result in an entity providing users of financial statements with comprehensive information about the nature, amount,timing, and uncertainty of revenue and cash flows arising from the entity's contracts with customers. This standard will be effective for the calendar year ending December 31,2019. -9- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Notes to Financial Statements(Continued) Years Ended December 31,2017 and 2016 Note B-Summary of Significant Accounting Policies (Continued) 10. Recently Issued Accounting Pronouncements (Continued): In February 2016, the FASB issued ASU 2016- 02, Leases. The standard requires all leases with lease terms over 12 months to be capitalized as a right-of- use asset and lease liability on the balance sheet at the date of lease commencement. Leases will be classified as either finance or operating. This distinction will be relevant for the pattern of expense recognition in the income statement. This standard will be effective for the calendar year ending December 31,2020. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. This standard will be effective for the calendar year ending December 31,2021. The Corporation is currently in the process of evaluating the impact of adopting these ASU's on the Corporation's financial statements. The Corporation has adopted ASU 2015-11, Inventory — Simplifying the Measurement of Inventory, to simplify the measurement of inventory. The adoption is effective for the year ended December 31, 2017 as required by the FASB. Pursuant to the adoption of ASU 2015-11, the Corporation is required to measure its inventory at the lower of cost and net realizable value.Net realizable value is defined as the estimated selling prices of the inventory in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance was applied prospectively beginning in 2017 (see Note B.5). No re-measurement of inventories as of December 31,2016 is required. There was no impact to the financial statements as a result of adopting this standard as of and for the year ended December 31,2017. Note C-Contracts Receivable At December 31,2017 and 2016, contracts receivable consisted of the following: 2017 2016 Contracts receivable: Completed contracts $ 1,655,895 $ 1,165,979 Contracts in progress 1,529,710 1,462,778 Retainage 111,013 212,948 3,296,618 2,841,705 Less: allowance for uncollectible contracts receivable (2,000) (2,000) Contracts Receivable,net $ 3,294,618 $ 2,839,705 Receivables for time and material jobs are included in completed contracts above. -10- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Notes to Financial Statements(Continued) Years Ended December 31,2017 and 2016 Note D-Costs and Estimated Earnings on Uncompleted Contracts At December 31,2017 and 2016,costs and estimated earnings on uncompleted contracts were as follows: 2017 2016 Costs incurred on uncompleted contracts $ 3,540,642 $ 6,792,602 Estimated earnings 1,274,549 2,383,762 4,815,191 9,176,364 Less:billings to date 4,606,355 9,181,981 Total $ 208,836 $ (5,617) The amounts on the preceding page are included in the accompanying Balance Sheets as follows: 2017 2016 Costs and estimated earnings in excess of billings $ 428,489 $ 196,876 Billings in excess of cost and estimated earnings (219,653) (202,493) Total $ 208,836 $ (5,617) Note E-Related Party Transactions The majority stockholder of the Parent Company also owns stock in other companies, including one affiliate that is also wholly-owned by the Parent Company, doing business with the Corporation. Revenues earned from these related businesses totaled approximately $1,880,000 and $1,278,000 for the years ended December 31, 2017 and 2016, respectively. There were approximately $232,000 and $300,000 of related party receivables included in contracts receivable at December 31,2017 and 2016,respectively. Total purchases from these related businesses totaled approximately$3,412,000 and$2,906,000 for the years ended December 31, 2017 and 2016, respectively. There were approximately $83,600 and $88,600 of related party payables included in accounts and contracts payable at December 31,2017 and 2016,respectively. The Corporation provided administrative services to related parties. The total administrative fee revenues were approximately $78,200 and$79,200 for the years ended December 31, 2017 and 2016, respectively, and have been netted against salaries expense in the Statements of Income. During the year ended December 31, 2016, the Corporation recorded a distribution to the majority stockholder in the form of a note payable for $490,000. The note accrued interest at the IRS short term applicable federal rate. Interest accrued at December 31,2016 was$4,312. The note principal and all accrued interest was completely paid during 2017. See Note H for additional related party information. -11- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Notes to Financial Statements(Continued) Years Ended December 31,2017 and 2016 Note F-Line of Credit On February 29, 2016, the Corporation replaced a line of credit with PNC Bank by entering into a new operating line of credit agreement with First Savings Bank. The line of credit accrued interest at the lenders prime rate,not to fall below 3.50% on an annual basis,and was secured by substantially all assets of the Corporation and the personal guarantee of the stockholders of the Parent Company for one-half of the line of credit. The Corporation had no borrowings outstanding on this line of credit at December 31, 2016. The line of credit matured in March 2017 and was not renewed. Note G-Long-term Debt Long-term debt is summarized as follows: 2017 2016 Note payable to Komatsu Financial,non interest-bearing, payable in monthly payments of$2,637 through February 2018, secured by equipment. $ 2,636 $ 34,274 Note payable to John Deere Financial,non interest-bearing, payable in monthly payments of interest and principal of$5,126 through December 2018, secured by equipment. 61,516 117,904 Note payable to Wells Fargo Bank at 3.10%interest, payable in monthly payments of$11,096 through May 2020, secured by equipment. 309,639 431,141 Note payable to Brandeis Machinery& Supply Co.,non interest- bearing,payable in monthly payments of interest and principal of $4,342 through September 2021, secured by equipment. 195,398 - Note payable to John Deere Financial at 2.50%interest, payable in monthly payments of interest and principal of$2,176 through January 2017, secured by equipment. - 2,166 Note payable to John Deere Financial,non interest-bearing, payable in monthly payments of$2,392 through Jan 2017, secured by equipment. - 2,392 Note payable to Whayne Supply Co. at 1.13%interest, payable in monthly payments of$13,938 through March 2017, secured by equipment. - 41,744 Note payable to Whayne Supply Co.,non interest-bearing, payable in monthly payments of$2,929 through July 2017, secured by equipment. - 14,647 -12- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Notes to Financial Statements (Continued) Years Ended December 31,2017 and 2016 Note G-Long-term Debt(Continued) 2017 2016 Note payable to Whayne Supply Co.,non interest-bearing, payable in monthly payments of$5,427 through November 2017, secured by equipment. $ - $ 54,273 Note payable to John Deere Financial,non interest-bearing, payable in monthly payments of$2,207 through November 2017, secured by equipment. - 24,284 Total Long-term Debt 569,189 722,825 Less current portion (241,581) (354,163) Long-term Debt, Less Current Portion $ 327,608 $ 368,662 Long-term debt is scheduled to mature as follows: 2018 $ 241,581 2019 181,370 2020 107,158 2021 39,080 $ 569,189 Note H-Lease Commitments The Corporation rents various construction equipment on a short-term basis. The equipment rental expense totaled $225,244 and $309,072 for the years ended December 31, 2017 and 2016, respectively. Included in equipment rental expense are payments to related parties totaling$21,309 and$51,630 for the years ended December 31,2017 and 2016,respectively. The Corporation also leases its office facilities and a storage facility from related parties on a year-to-year basis. Total expense was $30,000 for the years ended December 31, 2017 and 2016. Under the terms of the lease agreement,the Corporation pays all normal maintenance and utilities of the facilities. Note I-Income Taxes The Parent Company elected S corporation tax status and the Corporation elected to be a qualified subchapter S subsidiary of the Parent Company. Taxable income and losses of the DCEC Holding Co, Inc. consolidated group are reported on the individual income tax returns of the stockholders. Accordingly, the Company has no provision for federal and certain state income taxes. The Company is still subject to certain state and local income taxes paid at the entity level. -13- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Notes to Financial Statements(Continued) Years Ended December 31,2017 and 2016 Note I-Income Taxes(Continued) GAAP defines tax positions applicable to pass-through entities, such as S corporations and partnerships, and only requires income taxes attributed to the reporting entity, and not the individual owners, to be considered tax positions. Management has concluded that there are no tax positions attributed to the reporting entity which meet the more-likely-than-not criterion for recognizing a liability for uncertain tax positions. Accordingly,the accompanying financial statements do not include any provision for uncertain tax positions. There were no changes in the liability for uncertain tax positions during the years ended December 31, 2017 and 2016, and there are no positions for which it is reasonably possible that the total estimate of liability for uncertain tax positions will significantly increase or decrease within the next twelve months. The Corporation has adopted a policy of recognizing tax-related interest and penalties, if any, in operating expenses. During 2017 and 2016, the amount of interest and penalties recognized was insignificant to the financial statements. Note J-Employee Retirement Plan The Corporation has established a 401(k)plan(the"Plan")for employees who meet certain eligibility requirements. Under the Plan, the Corporation can make discretionary matching contributions up to 3% of participant compensation, equal to one-half of each employee's salary deferral contribution up to 6% of each employee's compensation. The Corporation's Plan expenses and matching contributions for the years ended December 31,2017 and 2016 were$78,179 and$75,161,respectively. Additionally, the Corporation can make discretionary profit sharing contributions to the Plan. These contributions are allocated to each participant based on the ratio of the individual participant's compensation to the total compensation for all eligible participants. There were no discretionary profit sharing contributions to the Plan for the years ended December 31,2017 and 2016. Note K-Deferred Compensation Agreement On May 1, 2014, an agreement was created, as part of but unrelated to an agreement to sell a minority stake in the Parent Company, whereby the Corporation committed to provide deferred compensation totaling $375,000 within the next ten years to current or former employees of the Corporation or Gotta Go, Inc., an affiliate also wholly-owned by the Parent Company, as determined by the majority stockholder of the Parent Company. The specific employees and amounts to be paid to each employee were not determined in the agreement, and there are no service or vesting requirements necessary for the employees to earn the deferred compensation under the agreement. Therefore, in accordance with GAAP requirements under Topic 450 of the Accounting Standards Codification, management determined that the eventual payment of the deferred compensation is probable and reasonably estimable. The Corporation recognized the total $375,000 as deferred compensation expense in 2014, and recorded a deferred compensation liability, net of $39,970 in compensation paid, of $335,030 as of December 31,2014. During 2016, the majority stockholder directed $25,000 be paid, and the remaining balance as of December 31, 2016 was $310,030. The Corporation did not disburse any of these funds in 2017 and does not anticipate disbursing any of these funds in 2018; therefore, the liability as of December 31, 2017 is classified as noncurrent. -14- Dan Cristiani Excavating Co.,Inc. (a wholly-owned subsidiary of DCEC Holding Co.,Inc.) Notes to Financial Statements(Continued) Years Ended December 31,2017 and 2016 Note L-Contingencies,Risks,and Uncertainties Cash Concentration Risk: The Corporation maintains cash in deposit accounts with federally insured financial institutions.At times,the balances in these accounts may be in excess of federally insured limits. Customer Concentration Risk: The Corporation enters into construction contracts with individuals, businesses and governments in the Southern Indiana and Louisville, Kentucky area. The customer base typically fluctuates from year to year. Accordingly, in any given year, a customer could account for more than 10% of the Corporation's revenue. During 2017, one customer accounted for approximately 11% of the Corporation's revenue. A different customer accounted for 15% of the Corporation's contract receivables. During 2016, one customer accounted for approximately 23%of the Corporation's revenue. Supplier Concentration Risk: During 2017 and 2016, one supplier accounted for approximately 11% of the Corporation's purchases. Concentration of Credit Risk: The Corporation grants credit, generally without collateral, to customers in Southern Indiana and Louisville,Kentucky. Consequently,the Corporation's ability to collect the amounts due from customers is affected by the economic fluctuations in the geographic region.The Corporation is usually eligible for filing a contractor's lien against the property on which work was performed. At December 31 2017, one customer accounted for approximately 15% of the Corporation's outstanding contract receivables. At December 31 2016, no customers accounted for over 10%of the Corporation's outstanding contract receivables. -15-