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Mr. Lonnie Brokke December 9,2003 Page 6 3. Proceed with the Acceptance of Settlement and roof replacement and deck remediation. If the City decides to accept the settlement and proceed with the deck remediation and roof replacement, the City will first need to determine the type of roof that it wants for the Ice Arena and go out for bids or proposals to determine the extent of the out-of-pocket cost to the City. The Class Action Settlement Agreement does not limit the City to replacing the roof on the Ice Arena, but rather compensates the City for the early removal of the current roof and the cost of the existing deck remediation. The City is ftee to replace the roof with any design or method it chooses. However, the Class Action Settlement Agreement d�es have some special requirements for specifications and terms and conditions which must be present in the contract order for the City to receive compensation for the deck remediation. According to Jim Edwards at PhenCon, PhenCon can provide the City with assistance in writing the specifications and terms and conditions for the bid process as part of their already contracted for services and at no further cost ta the City. Alternatively, PhenCon is able to provide the name of a consultant who could write bid specifications. Depending on how long the design, bid or proposal process, and budgeting is estimated to take, the City may choose to sign the Acceptance of Settlement prior to the beginning these steps and subsequently ask for an extension beyond the 60 days, or wait until further into the process to sign the Acceptance of Settlement. 4. � Do nothing and receive no Settlement compensation. There is no provision in the Class Action Settlement Agreement which would allow the City to accept the compensation and then replace andlor repair the roof and metal decking within its own timeline. The Settlement compensation is directly tied to the removal of the phenolic foam roof insulation and the remediation of the metal roof decking. The City is well within its rights to choose to not accept the Offer of Settlement; however, it appears that the City will eventually need to remove the phenolic foam roof insulation and the remediate the metal roof decking in order to avoid liability issues. Because the City has pursued its options under the Class Action Settlement and has not opted out, the City has given up any individual right to sue any of the Class Action Defendants for any damages caused to the Ice Arena building by the phenolic foam roof insulation. Thus, rather than receiving compensation for the damage to the metal roof decking under the Settlement, the City will be forced to foot the entire cost of the project.