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February 12, 1998 Mr.Roger Olson RKO Homebuilders,Inc. 3134 130th Ave. NW Coon Rapids,MN 55448 Re: Home built on 125 Truffula Trail,Orono,MN 55356 Dear Mr.Olson: We still have not heard from either the plumber or the framer on the plumbing leaks and uneven french doors as we discussed back in November. We would certainly appreciate your assistance as the plumbing leaks are getting worse. We would also like the plumbers and heating installers to address the"knocks"we are hearing from within the walls. The noises are continuing to keep our children awake at night. You had indicated that the sounds may go away, however,they are actually getting worse. At this time,we are also requesting something in writing from you as to why we did not receive a credit back on our brick and cabinet allowances. As you know,our copy of the sworn construction statement indicates we did not use our full allowances as you had previously indicated. Regarding the roof leaks at our property,we would like to call to your attention a letter from the City of Orono(see attached). Since you have not personally viewed the problem areas to date,we requested the City of Orono inspectors,along with other roofers,to come out to our property to review the situation. The city officials and the roofers we have had out to our property, including your own,indicated to us that this is a bad area requiring special attention which should have been given at the time of installation. As you will note from the City of Orono's letter and the roofers'recommendations,they believe the problem is due to the construction of the roof and flashings and that water leakage will occur in the home even during heavy rains. All of the roofers, including your own,advised us that additional ice and water barrier,along with a metal or possibly rubberized roofing material would be needed to prevent future water damage. However,according to your roofer, he does not do this type of work himself. Therefore,we obtained two estimates and a letter of recommendation pertaining to this situation(please see attached). It is certainly our position,as well as the City of Orono and the State of Minnesota,that you are responsible for the work required to remedy this problem. We would like to inform you at this time that your recent cosmetic repair of the front stoop and brick work are both cracking once again,even during this mild winter. Also,the discoloration of your overlay is not changing as you had indicated that it would. We invite you to make an appointment with us if you find it necessary to view these situations at our home. After which,we are requesting a written response to these very important issues with a detailed description of what you intend to do to remedy them, along with the time frame of repairs. We are requesting this written response by certified mail on or before March 3, 1998. Sincerely, Mike and Lori Arne 449-8779 cc: City of Orono