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Mr. Lonnie Brokke December 9,2003 Page 2 The City determined that it did have phenolic foam insulation in the roof of the Roseville Ice Arena and submitted a claim to Standish Legal Processing. The City then received a letter from Kenneth G. Gilman of Gillman and Pastor, LLP, the lead class counsel for the Plaintiffs in the class action. Mr. Gilman noted that in order to receive compensation under the Class Action Settlement Agreement, building owners needed to follow the proper procedures in a timely matter and suggested the use of a consultantknowledgeable in the terms of the settlement agreement to assist the City in processing their claim. Mr. Gilman recommended and endorsed the consulting and claims processing finn of PhenCon, as demonstrating a commitment to building owners and a complete understanding of the settlement process. Mr. Gilman noted that the cost of these services was covered within the Class Action Settlement Agreement. The Roseville City Counsel approved the use of PhenCon to perform claim administration for the City and authorized PhenCon to pursue inspection, repair and/or replacement of the Ice Arena roof consistent with the Settlement terms. The Roseville Ice Arena roof was subsequently inspected and PhenCon, on behalf of the City, requested and received bids for the roof replacement and remediation. PhenCon submitted these bids to the Phenolic Claims Office. The Phenolic Claims Office made a proposed settlement offer based upon the low bid received by PhenCon. PhenCon provided this proposed settlement offer, along with their analysis of said offer, to the City on October 2, 2003. The City had 30 days from the date of the original settlement offer (September 29, 2003) to appeal the offer. However, PhenCon's analysis noted that the likelihood of obtaining an increase in this offer was zero percent, as the offer was for the full amount available for compensation under the Settlement. Because the Settlement Offer was not appealed within the 30 days, it is presumed acceptedby the Phenolic Claims Office. ISSUE You asked this office to summarize for you the City's options with regard to its participation in the Class Action Settlement, access to settlement funds, and use of the funds. ANALYSIS The compensation which the City can receive under the Class Action Settlement Agreement is broken into three parts: remediation of the metal roof decking, roof replacement, and interior protection. In order to determine the extent of the compensation which the City can receive under the settlement for both the deck remediation and roof replacement, PhenCon sought bids from a number of bidders by invitation only. The City is not required to use any of these bidders if it decides to undertake the roof and deck work; rather, the bids were gathered by PhenCon solely for the purpose of submitting a settlement claim.