I Seattle Tunnel Partners WSDOT Contract No. 007999 999 Third Avenue, Suite 2424 SR 99 Bored Tunnel Alternative Design--Bui|d Project Seattle, WA 98104 Phone: 206-971-8701 Fax: 206-971-8702 an-c-1.-r.s--January 16, 2014 Serial Letter WSD--0543 S-G--GEN-GEN-CA06-00576-02 Washington State Department of Transportation 310 Maple Park Avenue S.E. Olympia, WA 47300 Attn: Peterson, Secretary of Transportation Dear Secretary Peterson, To date, STP and WSDOT have enjoyed a good working relationship on the SR 99 Tunnel Project. However, recent actions by WSDOT, for reasons which STP does not understand, have the potential of seriously damaging this relationship and adversely affect WSDOT's and STP's ability to move forward together to deliver this project. Only WSDOT's perspectives on current contractual matters are being provided to the politicians, public and media, resulting in STP being put on trial in the court of public opinion without being given any opportunity to defend itself. STP is in receipt of your letter dated January 13, 2014 in which WSDOT finds STP in breach ofthe DBE requirements in the Contract. STP is preparing a response to your letter. The issuance of the above referenced letter was shortly followed, that same day, by a WSDOT Press Release announcing that STP is in breach of the Contract and by a WSDOT Briefing to the Seattle City Council at which it was again announced that STP is in breach of the Contract. In the Press Release and at the Briefing, WSDOT cast STP in a very bad light. Although your letter cited the progress achieved by STP over the last several months in achieving the 8% DBE Participation Goal by the Project's completion date in 2015, this information was not included in the Press Release or provided at the Briefing. STP will achieve this 8% Goal. A stated in our letter of December 19, 2013, STP is on target to meet the $91,174,000 Goal as demonstrated by our anticipated commitments to DBE firms in the range of $88 to $99 million. In addition to WSDOT's public statements regarding WSDOT finding STP in breach of the Contract, we note that WSDOT is now providing information to elected officials and the media, as evidenced by an article in today's Seattle Times, regarding the TBM stoppage, in which STP was again portrayed in a very bad light. 1-: UNNEL PARTNERS Seattle Tunnel Partners WSDOT Contract No. 007999 999 Third Avenue, Suite 2424 SR 99 Bored Tunnel Alternative Design-Build Project Seattle, WA 98104 Phone: 206-971-8701 Fax: 206-971-8702 We are surprised that WSDOT appears to be attempting to shift the responsibility for the cost and time impacts associated with the current TBM stoppage to STP when WSDOT understands that the cause of this stoppage was the encountering of a steel well casing, which was installed and left in place by WSDOT. STP would like to meet with you, at your earliest possible convenience, to ensure that we preserve the good working relationship that has existed between STP and WSDOT on the SR 99 Tunnel Project while jointly addressing and resolving these contractual matters. Sincerely, Chris Dixon Project Manager cc: Correspondence File