A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Thursday, November 11, 2004 at 1:00 p.m. Central Time.

The purpose of this meeting is to allow the Councilors to participate in a court ordered Facilitative Mediation regarding the "Barbara Benda, et al v City of Crystal Falls" lawsuit, File No. I-03-2529-CZ.

Present: Mayor Hendrickson, Councilors Thrasher, Heikkinen, Stachowicz, and Valesano.

Absent: None

Also present were City Manager Nordeman, City Attorney Lawrence, City Clerk/Treasurer Olson, Francis D. Brouillette (Mediator), Plaintiff Attorney Peter Ryan, Plaintiffs Barbara A. Benda, Peter R. Benda, Emil J. Bicigo, Louis J. Bonetti, Earl W. Gigstead, Robert P. Graham, Walter Hagglund, Marland Martwick, S.A. Parochelli, Edward A. Payne, Alex Simbob, Julius Simbob, Joseph Smokevitch, and Kenneth Stockero.

Mayor Hendrickson led all present in the Pledge of Allegiance.

Mayor Hendrickson seconded by Councilor Thrasher moved to meet in executive session, pursuant to the Michigan Open Meetings Act, P.A. 1976, No. 267, 15.268, Sect 8 (e), to discuss strategy regarding the ongoing litigation of "Barbara Benda Etal v. City of Crystal Falls".

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, and Stachowicz.

Nays: None.

Moved into closed session at 1:02 p.m.

Reconvened open session at 4:55 p.m.

Councilor Thrasher seconded by Mayor Hendrickson moved to settle the lawsuit of Benda Etal V City of Crystal Falls, File No. I-03-2529-CZ for all plaintiffs and their spouses per the following terms, which shall apply until the demise of the plaintiff:

The City will reimburse all plaintiffs and spouses at the rate of $66.60/month on a quarterly basis for the Medicare Part B premium. This is capped at this amount until the death of the plaintiff.

The City will provide a drug card to the plaintiff and spouse with the cost to the City capped at the January 1, 2005 premium until the demise of the plaintiff. Any future premium increases will be paid by the plaintiff.

The City will continue to reimburse the plaintiff for any out-of-pocket expense per prescription in excess of $5.00.

The City will reimburse the Medicare Part B premium at the applicable rates from April 1, 2003 to present to the plaintiff.

The City of Crystal Falls will enter into a contract and stipulate to a judgement, which incorporates the terms of this settlement.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, and Stachowicz. Nays: None

Motion carried.

Plaintiff Attorney Peter Ryan confirmed that the plaintiffs understood the settlement and thanked the Council for the concessions on behalf the plaintiffs. He noted that he would meet with City Attorney Lawrence to put together an agreement that will be signed by the Council and the Plaintiffs prior to recording it with the Court.

Mayor Hendrickson urged all the plaintiffs to use generic drugs when possible to keep the cost down.

Councilor Thrasher seconded by Councilor Valesano moved to make the following statement: The Council for the City of Crystal Falls recognizes it’s contractual obligation to provide Blue Cross Blue Shield supplemental insurance for these plaintiffs and their spouses and will continue to pay that premium along with any increases to that premium until the demise of the plaintiff.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano and Stachowicz. Nays: None

Motion carried.

Mayor Hendrickson adjourned this special meeting of the Council for the City of Crystal Falls at 5:15 p.m.