A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Friday, September 6, 2002 at 3:00 p. m. Central Time.

Present: Mayor Nylund, Councilors Hendrickson, Thrasher and Lind.

Absent: Councilor Benda

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

The purpose of this special meeting was to review the retiree’s hospitalization benefits and options available to the City to decrease the cost, and to conduct a closed session as requested by City Manager Nordeman, pursuant to P.A. 1976, No. 267, the Open Meetings Act, Section 15.268(a) to hear about complaints brought against a City employee.

Mayor Nylund led all present in the Pledge of Allegiance.

Mayor Nylund briefly explained the purpose of the meeting and then called upon the visitors for comments regarding the retirees health insurance coverage, and in particular, the Medicare rebate currently given to the retirees who are enrolled in the Medicare Part B coverage.

Retiree Walter Hagglund, former City Manager, spoke for the group indicating that the Medicare Rebate began as an incentive for the retiree to sign up for the Medicare Part B coverage. The Blue Cross Blue Shield premium cost to the City is reduced when retirees enroll into Medicare Part B coverage as Blue Cross Blue Shield then becomes a supplementary policy to Medicare coverage. He also stated that his research has indicated it is illegal for the Council to take away benefits given to employees and retirees as those benefits were bargained for in the past.

Councilor Hendrickson noted that there is no record of Council action approving the payment of a Medicare rebate to the retirees. She also noted that the cost to the City has climbed to over $13,000.00 a year for these rebates.

There were many suggestions from the employees and retirees and visitors in attendance. Mayor Nylund thanked everyone for their comments and noted that the Council would not be taking action at this time and would take the comments under advisement.

Mayor Nylund excused the visitors in attendance and moved the meeting into a closed session pursuant to P. A. 1976, No. 267, The Open Meetings Act, Section 15.268(a) as requested by City Manager Nordeman, to hear complaints brought against a city employee.

Meeting temporarily adjourned 4:18 p.m.

Meeting reconvened at 5:06 p.m.

There being no other items on the agenda, the meeting was adjourned at 5:07 p.m.