A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Thursday, August 1 2002 at 3:30 p. m. Central Time.

Present: Mayor Cram, Councilors Hendrickson, Nylund, Benda, and Lind.

Also present were City Manager Nordeman, City Clerk Olson, and City Attorney Lawrence.

The purpose of this special meeting was to hear a presentation regarding the employee’s hospitalization insurance, including premiums and available coverage options to reduce said premiums.

Mayor Cram opened the meeting with the Pledge of Allegiance.

Mayor Cram introduced Fred Stoor, insurance agent for the City of Crystal Falls Blue Cross Blue Shield policy. Mr. Stoor advised the Council that the increase in the premiums for the hospitalization plan currently enjoyed by the employees will be 24% for the active employees and approximately 35% for the retiree section.

Mr. Stoor presented viable options to the Council to consider. He suggested moving to the PPO Plan 2, implementing a $10/$40 prescription drug card, $30.00 Office Visits, with Dental & Vision coverage for the active employees. This change would reduce the increase to about 12%. A change to the retiree’s drug card to the $10/$40 would realize a 10% reduction in the overall premium increase.

The Council and employees present asked various questions of Mr. Stoor regarding the insurance coverage.

Mayor Cram suggested Manager Nordeman bring a recommendation to the Council for consideration at the next meeting.

There being no other items on the agenda, the meeting was adjourned at 4:23 p.m.