Minutes Exhibit A
Port Commission Special Meeting
of August 15, 2017
Testimony of Ralph B. Ibarra, President — DiverseAmerica Network
Port of Seattle Commission Special Meeting: August 15, 2017

RE:            Non-compliance by Clark Construction Group, LLC of Design-Build Contract Provisions

For the record, my name is Ralph Ibarra and my company is DiverseAmerica Network, my home is in
Algona, Washington, and | have been a tax-paying resident of the Port’s jurisdiction since 1980. | am
here representing Sundancer Electric, Inc., a prominent subcontractor on the International Arrivals
Facility Project and to testify in opposition to the purpose and intent of Agenda Item 6c, Attachment A;
International Arrivals Facility (IAF); Authorize the Balance of Funding (Capital Improvement Project
#C800583).
My testimony is to alert the Port of Seattle Commissioners of the non-compliance by Clark
Construction Group, LLC of critical provisions contained within the Design-Build Contract executed on
July 20, 2015.  Particularly troubling is Clark Construction’s lack of adherence to those Federal Aviation
Administration Supplementary Provisions referenced in ARTICLE 2- WORK OF THIS CONTRACT that
states: “Without limiting the generality thereof, Design-Builder shall in that event comply with Section
01 05 01c ofthe Requirements Documents.” Entitled Required Contract Provisions for Airport
Improvement Program Projects $100,000 And Over, Prompt Payment to each subcontractor is clearly
defined: “The prime contractor agrees to pay each subcontractor under this prime contractfor
satisfactory performance of its contract no later than 10 daysfrom the receipt ofeach payment the
prime contractor receivesfrom Port ofSeattle... This clause applies to both DBE and non-DBE
subcontractors.” Moreover, the Port's provisos within ARTICLE G-08; subsection G-08.03 PROGRESS
PAYMENTS are definitive:
Item D. The Design-Builder is required to make payment to all Subcontractors and Suppliersfor all Work
included within the Progress Payment within ten (10) Daysfrom the receipt ofthe Progress Payment.
Furthermore, the Design-Builder shall require all subcontracts issued under this contract to all
Subcontractors and Suppliers at all tiers to also make all due payments within ten (10) Days of their
receipt ofpayment.
Item E. The Design-Builder shall supply with each payment request a certification signed by a corporate
or company officer. This certification shall attest that all payments by the Design-Builder due to
Subcontractors or Suppliersfrom the last payment estimate have been made within the ten (10) Day
payment period. The certification shall attest that the Design-Builder will make payment within ten
(10) Days of all obligations duefrom the current payment estimate.  The Design-Builder is required to
receive the same certification from all Subcontractors and Suppliers at all tiers.  It is particularly critical
to know that inconsistent compliance of the aforementioned clauses of the Design-Build Contract held
by Clark Construction Group, LLC could be considered a material breach of the Design-Build Contract.
Furthermore, details of how Clark Construction Group, LLC has not fulfilled its obligation to make
required payments to its Prime Subcontractor Macro-Z-Technology (MZT) - under Subcontract
Agreement No. 41554, and has failed to process the required Change Orders to substantiate payments
to MZT Subcontractors; namely, Sundance Electric, Inc. are outlined in a supplemental memorandum,
along with Exhibits for reference.
In closing, we respectfully ask that any request to authorize additional funding for the International
Arrivals Facility be deferred until the ACTIONS REQUESTED contained in the supplemental
memorandum are accomplished.
IN DIVERSEAMERICA
N ET wW  O  R  K
826 Algona Blvd. North Algona, WA 98001 USA
C: (253) 653-4645 | E: Ralph®MBEWorld.com
W: DiverseAmerica.Net


                                     MEMORANDUM
TO:           Port of Seattle Commissioners
Cc:              David Soike, Port of Seattle Interim Chief Executive Officer
Ralph Graves, Managing Director — Port of Seattle Capital Development Division
FROM:       Ralph B. Ibarra, President | DiverseAmerica Network
Representing Sundancer Electric, Inc.
DATE:        August 15, 2017
RE:             Design-Build Contract for International Arrivals Facility Project (IAF)
BACKGROUND
This memorandum is to alert the Port of Seattle Commissioners of the non-compliance by Clark Construction
Group, LLC of critical provisions contained within the Design-Build Contract executed on July 20, 2015.
Particularly troubling is Clark Construction’s lack of adherence to those Federal Aviation Administration
Supplementary Provisions referenced in ARTICLE 2- WORK OF THIS CONTRACT that states: “Without limiting the
generality thereof, Design-Builder shall in that event comply with Section 01 05 01c ofthe Requirements
Documents.” Entitled Required Contract Provisions for Airport Improvement Program Projects $100,000 And
Over, Prompt Payment to each subcontractor is clearly defined: “The prime contractor agrees to pay each
subcontractor under this prime contractfor satisfactory performance of its contract no later than 10 daysfrom
the receipt ofeach payment the prime contractor receivesfrom Port ofSeattle...This clause applies to both DBE
and non-DBE subcontractors.” Moreover, the Port's provisos within ARTICLE G-08; subsection G-08.03
PROGRESS PAYMENTS are definitive:
Item D. The Design-Builder is required to make payment to all Subcontractors and Suppliersfor all Work included
within the Progress Payment within ten (10) Daysfrom the receipt of the Progress Payment. Furthermore, the
Design-Builder shall require all subcontracts issued under this contract to all Subcontractors and Suppliers at all
tiers to also make all due payments within ten (10) Days of their receipt ofpayment.  The Design-Builder must
Justify to the Port in writing any intent to withhold payment ofmonies due to any Subcontractor or supplier.
Item E. The Design-Builder shall supply with each payment request a certification signed by a corporate or
company officer. This certification shall attest that all payments by the Design-Builder due to Subcontractors or
Suppliersfrom the last payment estimate have been made within the ten (10) Day payment period. The
certification shall attest that the Design-Builder will make payment within ten (10) Days ofall obligations due
from the current payment estimate. The Design-Builder is required to receive the same certificationfrom all
Subcontractors and Suppliers at all tiers. No Progress Payments will be processed until the Design-Builder's
certification is received.  It is particularly critical to know that inconsistent compliance of the aforementioned
clauses of the Design-Build Contract held by Clark Construction Group, LLC could be considered a material
breach of the Design-Build Contract.
The BACKGROUND synopsis is a prelude to details of how Clark Construction Group, LLC has not fulfilled its
obligation to make required payments to its Prime Subcontractor Macro-Z-Technology (MZT) - under
Subcontract Agreement No. 41554, for IAF Project No. 113458 - and failed to process the required Change
Orders to substantiate payments to MZT Subcontractors; namely, Sundance Electric, Inc (Sundancer). As such,
the relevant circumstances and details are outlined in chronological order:
October 31, 2016: Subcontract No. 1385-002 entered into between Macro-Z-Technology Company
(“Contractor”) and Sundancer Electric, Inc. (“Subcontractor”); “Contractor has entered into a contract with the
following Owner: Clark Construction Group, LLC (Clark) and Port of Seattle, (a) the firm fixed price of Five
hundred ninety-three thousand two hundred eighty-nine Dollars ($593,289.00).
March 16, 2017: Sundancer Electric, Inc. issues Serial Letter #13 to MZT about the hardship that has been
caused by not having processed change orders that Sundancer has proceeded with work as directed by MZT in
order to attempt to comply with a fast tract schedule for the IAF. Total of directives that have not been
processed into change orders as of this date: $3,178,549.59. [See EXHIBIT A]

Page 1 of 2

              March 20, 2017: Ralph Graves alerted to lack of processed change orders from MZT to Sundancer for work
authorized by Clark via Addendums and Bulletins, now totaling over five (5) times the original firm fixed price of
S600K.
April 18, 2017: Email response from Lou Palandrani, Senior Vice President, Clark Construction Group - California
LP in answer to an inquiry by Mian Rice with these statements: “...Clark is actively working w/MZT and
Sundancer to ensure they are receiving due paymentsfor work completed on the project and that includes any
work associated with change order scope...Both Clark and the Port will work to expedite any payments to MZT
and Sundancer.” Alas, Mr. Palandrani’s promises turned out to be empty. [See EXHIBIT B}
about
May 5, 2017: Sundancer Project Supervisor Joshua Van Allen issues a letter to MZT outlining his concerns
work directives for the IAF Parking structure 3" floor that includes this opening sentence: “ATTENTION: For two
months now Sundancer Electric has been asking about the design on the 3"floor parking level. Not only is it
incomplete and doesn’tfollow the ports standards for the amount ofoutlets and data drops, it is also too vague
of the IAF
to attempt an install.” [See EXHIBIT C] This letter attests to Sundancer’s commitment to the integrity
Project and to properly notify MZT of potential schedule impacts of MZT’s directives.
June & July 2017: Numerous assurances from MZT that Sundancer would be paid for work performed on the
IAF.
August 2, 2017: Email from Jim Mortensen, Macro-Z-Technology to Sundancer and a large number of
Subcontractors about MZT’s May Invoice to Clark, informing them all that: “Clark Construction has paid our May
invoice and after careful review we discovered that they had short paid the invoice based on their recent
approval.” Mr. Mortensen elaborated with these statements: “Clark Construction indicated that they have not
received approvalfrom the Port ofSeattle and were waitingfor supported labor rates that they had requested
from MZT in October 2016. Well, after tracking down emails we found that MZT did not drop the ball as Clark
kept accusing us ofyesterday and in previous emails. MZT responded to the request and provided the requested
information to Clark Construction for their submission to the Port ofSeattlefor review.  This is out of our hands
and although Clark Construction states we dropped the ball, we have a paper trail showing we turned in the
required documentation they requested and they dropped the ball by not working with the Port ofSeattle to
resolve this matter. We negotiated the change order and settled on and amount with Clark Construction on May
16, 2017. As we have been told multiple times with the Port ofSeattle, we don’t have a contract with them but
with Clark Construction so theyfeel their hands are tied in this matter.” [See EXHIBIT D]
August 3, 2017: Sundancer issues Serial Letter #14 to MZT about Sundancer Financing Fees/Interest — Notice of
Impact and Claim, in response to Mr. Mortensens email. These are the salient points from Sundancer’s Serial
Letter #14: “Sundancer was provided with an accounting spreadsheetfrom MZT yesterday (August 1), indicating
$97,553.10 will be paid, leaving an additional $397, 446.90 remaining due and owing on the May invoice
(provided Sundancer receives the $97,553.10 payment). In addition, Sundancer’s June Invoicefor $430,000 is
also due and owing, for a total outstanding amount of$925,000 — just under a million dollars. Further,
Sundancer’s July invoice seeks an additional S80k, a reduced amount due to the direction that Sundancer may
not billfor its directed change order work until those change orders are entered into the system.  With
Sundancer’s additional changed and extra work, Sundancer’s July invoice will exceed $400,000. Ultimately,
Sundancer is currentlyfinancing this workfor MZT, Clark and the Port, and is suffering extraordinaryfinancial
” [See EXHIBIT E]
impacts and repercussions as a result ofthe magnitude of unpaid contract and extra work.
ACTIONS REQUESTED
It is respectfully requested that actions be taken to compel Clark and MZT to fulfill their responsibilities to
immediately pay Sundancer the full past due amount of $925,00, and assure prompt payment of their July
invoice of over $400,000. Additionally, an audit be conducted of all “Monthly Amounts Paid to All Subcontractor
Participants” forms submitted to the Port by Clark and MZT as required by condition 1.07 REPORTING OF
AMOUNTS PAID TO ALL SUBCONTRACTORS, as stipulated in DIVISION 0 — REQUIREMENTS DOCUMENTS |

Document 00 83 00 — Civil Rights, Title VI, and Non-Discrimination: “A. The Contractor shall submit, with each
application for progress payment, a completedform titled “Monthly Amounts Paid to All Subcontractor
Participants”. A sample is appended to this Section. The Prime Contractor, Subcontractors and all lower tier
Subcontractors shall include Subcontractors and Suppliers data on thisform.” [See EXHIBIT F]
Page 2 of 2

               —    ha                                        EXHIBIT A

|

« SUNDANCER
“FECTRE
7.  WC    /
. SRLCir                )      "a
iE     25500 74% Ave S Kent, WA 98032-
A Veteran, Native Ameriiarn,                                                  Phonesi253-398-2500
DBE/MBE Owned Business                                             Fax: 253-398-2957

03/16/2017                                        Serial Letter #13
To           Macro~Z Technology Company
Address:            841 East Washington Avenue, Santa Apna CA
PROJECT:          International Arrival Facility Enabling Project - Early works
Project NG:          113458Contract NO. 41554
SUBJECT:          Processing change orders
ATTENTION:       Kent Henry
i     Mr Henry,
orders. We have
We have spoken on numerous pocasionsaboutthehardship thet has been caused by not having peacessed change
schedule, Wehavesupplied pricing, assisted
proceededwithworkas directed byMZTinorder to attempt comply with a fasttrack
additional elactridansto build this fast track projedt.
With engineering coordination with Port of Seaitle requirement. Brought an many
(mak        Inaurred2greatdealofcostandoverhiezad expense.
the turden of the forced en directives.
{ believe we have been mote than patient during this rrocess. We can no longer afford t6 ey
We are using our capital and are
We cannot increase ourfinesofcreditbecause we co not have 2pproved or guaranizedchangeorders,
forced to borrowmoneyto coverthe cost of Iunlding your prajed.

of our original contract
We have issued Purchase orders for well over ¥ million doliars forworkthet was riot part
Evary timewe complain aboutthisissuewearetoldthatyouwillhave 2 chanceordernexdweek.Thishasbeengoingansince
December.Whenisitencuah?Pleaseforwardchange orderssothat wecancontinueour work ang rotbaconcernedaboutgetting
paid.

To date we have the following non processed changes:

Addendum #4; $513,754
Addendum #5: 3 172,090
Bulletin £31    $450,7M
Builetin # 2:   $65,968
Bulletin #4:     51,946,443.5%
Fire alarm equipment purchase $22,500

Total ofdirectivesthat have not been processed info change orders $3,178,530.59



We have several pending areas of impact and delay:

Excelicace i Slechical Canstnchion

                                -        ~
Aho
LACrit         35500 740 Ava S Kent, WA 95032
Phone 253-198-2095
4 Veteran, Native Amencan,                                        3,
Fas: 253-398-2057
OBEMBE Owed Business
1.  Shi Differential cost. From beginning through Apr, $317,085.00

ia addandhum 4, it wasnatnotedthatthesa conduits
2.  RF] for concrete encased conduits thatmustshifttonew panellocations
will Have tobe instaltad 35 well 35 locating aif of the loads.
ware underground and could notbeintercepted, New @laways
Assumed cast for locating and installing ew conduits$68,000.60

Ww  Offica space rents! for relocation. $5,008

4.  Added communication baxes hat identified on contrac, drawings. $28,000.

excluded from our bid.
n Night Work inefficiencies. $140,800 Nightwork vias
6. bokIssuing kes and sccess issues additional hows. $61,200
7.  Actions) cast i  Parking ck. Undefinedatthe momen,
8.  Commissioning requirercents nok includes with spec or bid.  $25,000

Port. $100,008
a: Miscchangesoradditicne! requirements by

10. Manpowerefficiency issues. $125,000







Roa VanAllen




Ber             3
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  *
FW: Small Business: Sundancer                                     mailbox:///C:/Users/Admin/AppData/Roaming/Thunderbird/Pro...

Subject: FW: Small Business: Sundancer
From: "Graves, Ralph"                                                   EXHIBIT B
Date: 4/18/2017 5:11 PM
Yo: "Ralph B. tbarra* 

Flares ah gnswer that nur cinttadter pratidedto Mian, Whi coritinass tachasethis as wel
Raigh
eonTTT         vee bre wenoSTUITITORTITTTIISSTIITRLONGIET
From: Lou Palandrani 
Sent:Tuesday, Apsil 18, 2017 4:36 PM
To: Rice; Mian
Ce: Paustian, Anny; Jarvi, Valarie; Dysart, Michael; Brush, David - Contractor; Sheerer, Janat; Marivic Barnba Chennault
 (marccheonaiit@cdlarkconstruction.com); MarshallSingh; Clark, Marguerite
Subject: Re: SmallBusiness: Sundancer

Hi Mian,

| wanted to.get back to you promptly on this issue, since Clark is actively working w/ MZT and Sundancer to ensure they are
receiving due payments for workcompleted on theprojectandthat includes any work associated withchange order scope. To that
end, we have initiated thefollowingaction:.

& Clark has made a direct paymentto Sundancerfor premium time work requested on theproject in an effort to support
gettinga faster payment to Suridaricer (Sundancerisa sub-to MZT)
e Clark is making payment toMZTndji turn we expectMZT is makingpaymenttoSundancerasweget paid by the Port for
approved invoices, We will followup onthisTssue
» We have assigned a team, lead by one ofou senior managers - Marshall Singh, toreview and resolve the change proposal.
submitted by MZT/Sundancer for change orderwork,We have recently receiveda revised proposalfrofn MZT/ Sundancer
which is less than that originally submitted and itisa follow up to our initial change order resciutionmeeting.
o We are currently reviewing all payroll records submitted by MZT and Sundancer to ensure they are getting due payment for
actual labor expended on the project.
© We plan to review w/ MZT and Sundancer all material purchases to make payment for legitimate matertal purchases related
to the project
s Clark will be working w/ the Port over the nextweek ta resolve change related workscape or theworkthat MZT and
Sundancer has underway with the goal to be abletoinclude an appropriate requisition for MZT JSundancer tn our April 2017
pay request fo the Port.
® Both Clark and the Port will work to expedite any due payments to MZT and Sundancer.
Again, | wanted to quickly respond on the [ssue and let you know what efforts are already underway. We are focused on getting due
payment to all our subcontractors, including Sundancer.

As discussed w/ you last week when you were at our office, feel free to call me at any time if you have any questions related to
Clark Construction and the JAF project.

Thank you

Lou Palandrani LEEDAP
Senior Vice President
Clark Construction Group- California LP
San FranciscoCA 415-767-7000 / IrvineCA714-429-9779
Viohile 510-715-6212
License No. 835892
dns.clarkcornistruction.com
On Tue, Apr 18, 2017 at 11:36AM, Rice, Mian  wrote:
Hello All

Whats the status regarding Sundancer Electrical Inc.? I just received a copy ofa letier {dated 3/16/17) to MZT indicating Change
Order concerns thatequate up to $3.1M. Has this issuebeenresolved? If not, what is the plan of actionto resolve these C/O


*  1of2                                                                                                                    8/11/2017 12:16 PM

   Auer
Fn             EXHIBITC
Seendricel  (Cordraiors Sesttie Wa                                               25500 747 Ave S Kent, Wa 38033
£ Veteran, Native American:                                                Phone:252-396-2999
DBE/MBE Owed Business                                         Fax: 253-398-2957

Date:  5/8/2017                                                     SER# 3025

TO:                Macro-Z
PROJECT:          International Arrival Facility- Early works
SUBIECT:    Parking structure 3" floor

ATTENTION:  For two months now Sundancer electric has been asking about the design on the 3™ floor
parking level. Not only is it incomplete and doesn’t follow the ports standards for the amount of outlets
and data drops, it is also too vague to attempt an install. Approximately 2 months ago Quintin Richardson
began to pose the question of install in multiple emails. After no avail, I began to redesign the 3" floor
communication and power rout. I have spent 20 hours, Multiple meetings and 3 separate design draw ups.

This morningIreceivedanemail toproceedforsurfacemounting all conduit inthe3"floor parking
Clark said he would send me
garage. Which has been in talks for about a week and a haif prior too this. Jeff
something in writing, which I asked about almost every day. Surface mounting this conduit brings up
fastening andaesthetic issues. Theproblemwithfasteningiseither using togglesorscrews. Thetoggles
are not approvedintheportspecs arenetseismicand maynotbethebestbetforthe 2" concrete ceiling.
Screwing into the hat channel is impossible, due to the fact that it is poured in concrete. There is a second
layer of hatchannelthat sits above the otherhatchannel,itis most likelytoothin to attach to andisa Vz
inch above the ceiling. In order to fasten the conduit rack securely to the ceiling every anchor point needs
to have an approximate 4 inch hole. This will ruin the aesthetics of the ceiling and will possibly need a
shroud afterward.

1 am not satisfied that the port has accepted a surface mount install. I have seennoother conduit
installed an the ceiling. Not to mention that the port has said the install has not been accepted by them.
Formeto installthisconduit ontheceilingsurfacemountandgothroughtheprocessofbeing blamed by
the Port or Clark weighs heavily on my mind. This letter is my attempt to show that this may go awry and
will possibly need to be redone, This has already caused schedule impacts, costs and is not Sundancer's
fault, We have done our diligence to attempt to make this flow smoothly.

The e mail I received this merning statesthatthiswork needs to be completedbythis coming
Wednesday 5/10. The duration ofwork in this area does not change. No amount of man power,overtime
at. Having
or night work will get this done by Wednesday. This area is too small to throw all 15ofour guys
that
two shifts in the same area is very counter productive. This work will take 2.5 weeks. Lets not forget
there are port rules that need to be followed one of which are waiting 7 days for outages and access,

Phere il] he additional coat for J shifts round the clock with nat guarantee that we will be able wi wien
the schedule put in front of this. The lack ofplanning and seglect RK give ndive is ridiculous considering tins
has heen jn the Clark Construction and the Pods hands for several weeks. We believe with the avertiowe and
shift differential thai the piss will not work with out and the improper shift non fication means we w ii he
paving double time, our extra anticipated Lost could be approximately 540.000 crer oar esting, The work as
defined is inefficient, we will have to nok in and out of every area. ABLCATs will have to be requested agai.
We also had an agreement when we received  your last payment that we could not continue on extenaed
vertu,

;      Efoerreinno fertvionf  Cappat     Sivtss
Logstleecei SApoUHons Catviis

       JpSUNDANCER

Sreirial Conjracions Seeltis. WA                                           Z5500 74°F Ave § Kent, WA 98032
4 Veteran, Native American,                                                Phone:253-398-2999
CBE/MBE Owned Business                                           Fay; 253-398-2897









sr
Joshua Van Allen           &
~e   SEA, { (AGE.
Ji SUNDANCER
2 f° FLECTRL  }
pe. mS
BUNDANCER ELECTRIC INC.
Veteran Owned, Native American Business
25500 74™ Ave 3, Kent,WA 88032
Ph: 253-358-2859 Fx: 253-398-2997 Cell: 426-492-6632






Erovetlonce ie Sloctsical Conshuiion

                                                       EXHIBIT D
From: Jim Mortensen [mailtojmortensen{@mztco.com]
Sent: Wednesday, August 02, 2017 1:28 PM
To: Erin Tasche ; Eric
Duke ;, Sean Morgan ; Ron Van Allen .
; Josh ;Wendi Edwards
; S Paul Singh ; Dow,Richard
; Ronald Robke ;Chase Chandler
; davep@purcelipainting.com; mi@mnlfoxconstructioncom; Steve Bell
; Don Henricksen ; russ(@applyaline.con;
radama(@cascadeconst.com; BrandonZahnow ;
Marace{@acousticaldesigninc.com; ajailletf@crinw.com; sdyvarasf@isinstallationscom;
esepolen/@obuncoengineerinecom; ‘deollazo@penhall.com’ (deollazo/@penhallcom)
; Dave Spurgin (dave/@mysignsource.com) ;
scotti@sklandscanellc.com;steve,greiling@titanearthcom; kelly(@trade-marxcom;
mph{@tucciandsons.com; smorrisigwondoor.com
Cc: Jeremy Wastweet ; William Esparza
; GregMoore ; Jamse Lerum
; JeffBowers ; Barrell Johnson 
Subject: SEATAC JAF - May Invoice
Importance: High
Team,
Clark Construction has paid our May invoice and after careful review we discovered that they had short
paid the invoice based on their recent approval. Once we received notification ofthe payment our team
began the process of determining what was billed versus what was paid only to discover in addition to
the initial determination ofreduced payment they did not pay any ofthe change order work.
So yesterday, MZT had a meeting with Clark Construction to discuss this additional short pay (over $1.2
million) in change order work. Clark Construction indicated that they havenot received approval from
the Port ofSeattle and were waiting for supported labor rates that they had requested from MZT in
October 2016. We listened carefully to their discussion and why they were not going to pay the invoice
only to hear again that the Port of Seattle was not proceeding because ofmissing or requested
information that MZThadn’tprovided.
So, thismorning I spent over two (2) hours reviewing the requested labor rate requirements they rejected
andasked to have resubmitted back in October 2016. Most ofyeu will remember that you had to
provide some additional information on your SUTA rates and some other minor issues. Well, after
tracking down emails we found that MZT did not drop the ball as Clark kept accusing us of yesterday
and in previous emails. MZT responded to the request and provided the requested information to Clark
Construction for their submission to the Port of Seattle for review.
Here is where we stand as oftoday regarding payments. Clark Construction has paid usfor base
contract work only for ourMay invoice. This invoice was short roughly $115,000 (on the base contract)
which Clark indicated they are processing.  The payment for change order work is on hold pending
additional revisions to labor rates being requested by Clark Construction and the Port of Seattle.  Their
timeline on approval is roughly: ifwe get them the additional information by Friday, then it will take
two (2) weeks for review, one (1) week for the Port of Seattle to award a change order, and then
payment can be processed. Right now Clark is on a forty-five (45) day pay cycle with the Port of
Seattle. We are currently on at least a sixty (60) day pay cycle with Clark Construction. Marshall Singh
has indicated the best situation is award by the end of August which we interpret to mean payment
possibly mid-September.
We are providing you the phone numbers ofour Clark Construction Representatives for you to call and
speak with them regarding delayed payments. This is out ofour hands and although Clark Construction

            states we dropped the ball, we have a paper trail showing we turned in the required documentation they
requested and they dropped the ball by not working with the Port of Seattle to resolve this matter. We
negotiated the change order and settled on an amount with Clark Construction on May 16, 2017. As we
have been told multiple times with the Port of Seattle, we don’t have a contract with them but with Clark
Construction so they feel their hands are tied in this matter.
The following are the points ofcontact for this project:
Lou Palandrani, Project Director/ St VP mobile (510) 715-6212
Marshall Singh, Project Director mobile (714) 448-6073
Jeff Clark, Senior Project Manager mobile (702) 303-8110
We are currently working on the base contract payment amounts and are trying to find out when the
“short” pay will be resolved. We hope to have the amounts resolved by tomorrow so we can get checks
processed. Please don’t call the accounting department because right now it is in my hands to work out
the payments based on the “approved” schedule of prices.
Please forward this email to whomever in your firm needs to receive it. I will do my best to get the
payment schedule out by tomorrow so you are aware ofwhat you are being paid for your May invoice.
Respectfully,
Jim Mortensen
Macro-Z-Technology
816 99" Street E.
Tacoma, WA
WWW.TZ{Co.Com
jmortensen@mztco.com
Ph. (253) 536-1100
Direct (253) 539-9757
FAX (253) 536-1121
Cell (253) 363-3087

            a
dis SUNDANCE                                        EXHIBIT E
a \ RLEETR EL
Fe.5   INC                                         |
|

;        -                                                        25500 74% Ave S Kent, WA 98032
A Veteran, Native American,                                                 Phorie: 253-398-2099
DBE/MBE Owned Business                                             Fax: 253-398-2997

08/03/2017                                             Serial Letter #14
TO:             Macro-Z Technology Company
Address:            841 East Washington Avenue, Santa Ana CA
PROJECT:       International Arrival Facility Enabling Project - Early works
Project NO:             113458 Contract NO. 41554
SUBJECT:       Sundancer Financing Fees/Interest
Noticeof Impact and Claim

ATTENTION:    Jim Mortensen
Dear Jim,

Sundancer Electric is in receipt of Macro-Z-Technology’s email dated 08/02/2017. Sundancer Electric understands
that its payment for May 2017 though currently due is being held up by forces beyond Sundancer’s control and,
according to MZT, specifically due to Clark's failure to timely and properly submit its payment applications. MZT
106 days
expects the payment will likely be delayed until sometime in mid-September of 2017 or approximately
from the invoicing date. Sundancer was provided with an accounting spreadsheet from MZT yesterday, indicating
$97,553.10 will be paid, leaving an additional $397,446.90 remaining due and owing on the May invoice
(provided Sundancer receives the $97,553.10 payment).  .

In addition, Sundancer’s June Invoice for $430,000 is also due and owing, for a total outstanding amount of
$925,000—just under a million dollars. Further, Sundancer’s July invoice seeks an additional $80k, a reduced
amount due to the direction that Sundancer may not bill for its directed change order work untii those change
orders are entered into the system. With Sundancer’s additional changed and extra work, Sundancer’s July
invoice will exceed $400,000. Ultimately, Sundancer is currently financing this work for MZT, Clark, and the Port,
and is suffering extraordinary financial impacts and repercussions as a result of the magnitude of unpaid contract
and extra work.  .

Sundancer is a small, disadvantaged business and is struggling to bear the financial burden MZT, Clark, and the
Port are imposing. Sundancer has and will be forced to seek (for the second time) financial assistance from
others to continue its performance on the job. As a result, Sundancer will incur financing fees, additional interest,
and administrative costs, among others.   In addition, MZT, Clark, and/or the Port are in violation of
Washington's Prompt Payment Act and the contractual payment provisions.

MZT, Clark, and/or the Port are responsible for all damages Sundancer incurs.  Therefore, this letter serves as
Sundancer’s Notice of Impact and Claim,  Sundancer will be compiling all accounting fees and interest and will
submit the final accounting when available.
Again, we are a private, small business that Is unfairly supporting a public project with our own dollars. Please
don't forget too that we are a tax paying entity in King County as well, and should not be placed in this corrosive
atmosphere.

Please cantact me with any questions or concerns that you may have.

Eavelfgace in Cloctrical ComatuctonLF  .  fo  KF iE Tare  FO     sepals

                                                               EXHIBIT F
of Seattle
MONTHLY AMOUNTS PAID TO ALL SUBCONTRACTOR PARTICIPANTS
This form is to be completed by the Prime and all Subcontractors that hire lower tier subs and suppliers.

Contractor (Prime/Subcontractor):                    Street Address:
City:                                         State:           Zip:                   For the Month Of:
Contract Number:                            Work Project Number:

Project Title:

Prime Bid Price                                Dollar Amount of the DBE Goal at Award
De                Amount   Amount
Subcontractor Participant     Date               Ethnic   Contract  Specification     Paid          Paid
(Name And Address)      Paid              Code    Type  -   Section
WBE                       This Month   To Date




Ethnic Code                      Contract Type                         - Total DBE Participation
C = Caucasian                      S = Subcontractor                        Achieved To Date
B = Black                            M = Material Supplier
H = Hispanic                         JV = Joint Venture                          Total MBE Participation
A = Asian American                                                            Achieved To Date
| = American Indian Alaskan Native                            }
O=0Other                                                            - Total WBE Participation
.
Achieved To Date
Comments
CANCELLED CHECKS REQUIRED      []  Attached
UPON REQUEST.
[]  Not available this report

[0  Checks Attached Are For Previous Reporting Period

Signature                                       Title                                     Date

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                   INSTRUCTIONS FOR COMPLETING THE MONTHLY AMOUNTS PAID TO ALL
SUBCONTRACTOR PARTICIPANTS FORM

DUE MONTHLY AND AT END OF PROJECT

Complete the form for each project, every month and at the end of the project.  Each form should
reflect payments made during the month and cumulative to date. Atthe end of the job, the form
should reflect all payments made since the last form was submitted.

The form is due in the Port's EEO office on the 5th of each month and at the end of the project.
A company may be requested to submit forms for progress payments prior to the end of the
quarter if there have been unusual circumstances. This would include: exceptionally large
projects, companies or contractors having a poor record of EEQ responsibility, refusal to submit
timely reports, complaints, etc.
The Contract Number is the number assigned to the contract by the Port of Seattle. (Example:
MC-0310234)
The Work Project Number is the specification number assigned to the project by the Port of
Seattle at the time that bids are advertised.

The Project Title is the job title from the specifications, contracts, etc.

The Contract Bid Price is the total amount for which the contract was signed with the prime
contractor.

The DBE Award Amount is the total dollar amount of the subcontractors’ bids.

I   Please enter one of the following into the Ethnic Code column.

C — Caucasian
B — Black
H — Hispanic
A — Asian American
| — American Indian or Alaskan Native
O- Other

Enter one of the following codes into the Contract Type column.

S - Subcontractor
M — Material Supplier
JV — Joint Venture

The Amount Paid This Month is to be the actual dollar amount disbursed to each participant from
the 1% day fo the last day of the month. This figure does not include any monies owing or retained
at the time the form is signed.

The Amount Paid to Date is the actual cumulative dollar amount disbursed to each participant
from the beginning of the project and includes the amounts paid during the reporting month.

Forms should be completed in ink or typed. Forms completed in pencil will be returned to the
contractor.

All forms not properly completed will be returned to the contractor for correction.
Progress payments may not be released if the form is not received by the Sth of each month.


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