Monica,

We are not sure if you are aware that settlement has been postponed pending resolution of the water issue. The well pump does not work although it has power at the well head. We have indicated to Grand West and Northstar that this is unacceptable and that we expect it to be fully functional before we move in.

As we indicated in our earlier conversation with you, we have some concerns about the 4th draw, which you have not yet seen. The 4th draw has been added directly to the closing instead of being submitted to you for approval. It is on the papers for direct pay out at closing. It is our understanding that ALL draws are to be approved by you BEFORE being paid. It seems to us that by adding the 4th draw to the closing circumvents this requirement.

We believe that it is in the best interests of everyone involved that the 4th draw be processed by you before settlement. Grand West has the 4th draw.

As stated in our earlier conversation, we have a number of problems with the 4th draw.

Well: The well was originally budgeted at $6,050 with an estimated depth of 300 feet. The 3rd draw shows $2,500 for the well. At the time of the 3rd draw we were told the well was installed and pumping at 9 gallons per minute. The well came in at 167 feet, almost half of what was budgeted. On the 4th draw there is an additional $2,834.27 for the well. We would like to see exactly what this money went for since the well was installed and running before the 3rd draw. To our knowledge, the well company has not been back to the site nor done any additional work since the installation.

Electric: The amount of $15,000 was put into the electric/solar category. The solar was our responsibility and we have paid the solar contractor directly. In our conversation with you, you indicated that there were to be no draws against this money

Culvert/Driveway: Budget was $750.00. A permit for driveway was pulled. A post with our street address was installed. There is no driveway nor is there any culvert. The 4th draw shows the full $750.00 for no work being done on a driveway. The Park County permit issued August 16, 2000, of which we have a copy, states that no culvert is necessary.

Crane Set/ Drive on/ Roll on: The house has been set in place for months, why a draw of $118.71 on 4th draw?

Site Cleaning: 4th Draw of $507.92, on the listing of project expenses supplied by Northstar. We do not see a disbursement for cleaning.

Other: On the listing of project expenses supplied by Northstar, we do not see a disbursement for "other". We have asked Northstar for a breakdown of the $450 and have not yet received it.

Amount: We are looking at some $5,500 in what we feel are questionable and undocumented charges.

As we told you in our earlier conversation, we were told just to sign the 4th draw and not to worry about the amounts. All of that was to be verified in the next step. We were told that all we were doing was saying that the work had been done and that the spaces where the numbers were entered were not important. We got the distinct impression that we were being hurried. Kevin's "bit of advice" (on December 27, 2000) to our concerns was not to worry, that "there's nothing to go through", we were "merely approving numbers". He also indicated that he felt we should "back off" because we're "doing fine".

We also have some concerns about other amounts that were listed on the closing documents we were presented. These concerns deal with the 3rd draw. We have not been able to locate your paperwork showing what was paid and what was denied on the 3rd draw. Could you please either fax us the summary sheet or mail it to us so we can more accurately address these concerns?

Any help you could supply would be greater appreciated.

Michael Meadors
Karen Dudnikov