November 17, 1999

Marin Glen Homeowners' Association
c/o Mr. Mark W. Sharp
Wakefield Sharp
Managing Agent
Marin Glen HOA
P.O. Box 1173
Novato, CA 94948-1173

Re: Marin Glen HOA v. First Coscan
Disclosure of Repairs of Deficiencies

Dear Members:

This letter is to advise you of the final status of the repair of defective conditions found in the homes at Marin Glen. This letter is required under Civil Code 1375.1. You should provide it to any prospective purchasers of your home, should you want to sell your home in the future. Please keep this letter in a safe place so you will be able to locate it in the future when you need it.

As you know, the Association entered into a settlement with the defendants in your construction defect case. The settlement amount was $1,290,000. The Association engaged a general contractor, Allied Construction, under the supervision of the architectural firm of Rosenberg McGinnis, AIA, to complete repairs of the construction defects discovered during the investigation of the defect case.

Window flashing deficiencies were included in the claim against the builder and it was determined that a certain flashing detail was defective in all 80 homes. Rosenberg McGinnis designed the repair specifications, which were completed under their supervision by Allied Construction. These repairs were completed in all 80 homes, as well as repair of any other exterior leak problems reported by occupants. This initial series of leak repairs was funded by a loan secured by the Association and repaid with the ultimate settlement proceeds.

In addition, destructive testing showed that the homes uniformly suffered from incorrect framing that caused the structural elements of the homes to be built in a way that fell below the minimum standards for seismic safety, as defined by the Uniform Building Code. Rosenberg McGinnis designed the structural repair specifications, which were completed under their supervision by Allied Construction. The repair work included shear wall reinforcement or replacement, blocking joints, renailing sill plates and adding new anchor bolts.

Certain units were identified as having drainage problems resulting from the original site work. Rosenberg McGinnis and Forster Pump & Engineering collaborated in the specifications and the drainage work was corrected by Forster Pump & Engineering at the perimeters of those specific locations.

The Association also commissioned a geotechnical study to evaluate the condition of the buildings from the standpoint of settlement or foundation movement, during the settlement negotiations. The firm of Jensen-Van Lienden Associates, geotechnical engineering consultants, issued a report dated July 22, 1997, which disposed of any potential claim for building settlement and foundation movement. A complete copy of that report was provided each member of the Association at the time that it was issued.

During the settlement negotiations, the Association made claims that additional doors and windows were not properly flashed, but had no specific evidence of that, having repaired all known window flashing detail problems and reported leaks. A portion of the settlement proceeds, $55,000, has been set aside in a separate reserve line item, to allow for any future window or door flashing related leaks that may be discovered. The Association's intent is to hold this money in the reserve account for a period of 10 years, from the date of the settlement, February 1998, and then to reallocate any remaining funds to the other line items in the reserve account.

This report satisfies the requirements of Civil Code 1375.1, and provides you with a disclosure document that brings the construction defect claim against the builder to a close. We also hope that it answers any outstanding questions that you may have.

Very truly yours,


Ann Rankin