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� Request for Council Action Date: Apri18,2002 Item Nnmber: �, G, Department Approval Manager Approval Agenda Section �� Consent Item Description: Authorization of PhenCon, Incorporated to Perform Claim Administration in the Investigation of Recovery of Damages for Losses Possibly Incurred by the City from Roof Insulation Installation Over the Ice Arena at the Roseville Skating Center Background: Recently, city staff was notified that a class action lawsuit was settled in Massachusetts. The class of plaintiffs were owners of buildings with Beazer Phenolic Foam Roof Insulation, and the claim was that the foam product released chemicals over time that corrode metal roof materials. The Ice Arena portion of the Skating Center has this type of insulation and pursuant to the settlement agreement, the City is eligible for a third-party inspection and possible repair or replacement of the roof. As part of the claim process, the plaintiffs' attorneys strongly recommend the use of PhenCon, Incorporated to assist in the claims process (see attached letter.) Polic,y Implications: While generally the City uses an open appointmentprocess in selecting consultants, the unique circumstances of this situation seem to warrant a departure from the City's standard procedure. Financial Implications: Except for city staff time spent assisting the PhenCon personnel, there should be little direct impact on City expenditures if PhenCon is selected, since the defendants have agreed to pay for inspection and replacement if the requisite settlement terms are met. Conversely, if PhenCon is not selected, city staff costs could be quite high and settlement recovery could be made more difficult. If subsequent actions, such as contracting for the repair or replacement of the roof become necessary, these requests for action will be brought back to Council. Staff Recommendation: Retain PhenCon as City claims administrator for this matter. Council Action Requested: Motion designating PhenCon, Incorporated as claims administrator for the City in this matter and authorizing PhenCon to pursue inspection, repair a�d/or replacement of the Ice Arena roof consistent with the class action settlement terms.