IMPORTANT INFORMATION

A change in hearing dates as outlined below has been made by the court (case number 69DU-CV-08-1793).

  
Notice:  Court Schedule Change on Retirees Lawsuit
 
To:   All retired city employees who have an interest in the Health Care Benefits Lawsuit including members of MAPERA & PERG.
 
Court Case schedule change: 

  June 23, 2009  Summary Judgement Hearing is cancelled.
 
Rescheduled to:

  August 7, 2009 at 9:00 a.m.,  Courtroom # 2, St. Louis County
  Court house.
 
From:  Patrick Alexander, City of Duluth Retirees  Ad Hoc Committee...

(A summary judgement is a determination made by a court without a full trial. Such a judgment may be issued as to the merits of an entire case, or of specific issues in that case.)

DULUTH CITY COUNCIL MEETING

Monday, June 15, 2009

BY PRESIDENT GILBERT                  (COMMITTEE OF THE WHOLE)

09-0384R - RESOLUTION AMENDING RESOLUTION 08-0344 (AS AMENDED) RETAINING KENNEDY & GRAVEN, CHARTERED, AS SPECIAL COUNSEL TO ASSIST THE CITY ATTORNEY IN RETIREE HEALTHCARE LITIGATION BY $100,000. -- PASSED 8-1 (Stauber)

COMMITTEE OF THE WHOLE 09-0384R

RESOLUTION AMENDING RESOLUTION 08-0344 (AS AMENDED)

RETAINING KENNEDY & GRAVEN, CHARTERED, AS SPECIAL

COUNSEL TO ASSIST THE CITY ATTORNEY IN RETIREE HEALTH

CARE LITIGATION BY $100,000.

CITY PROPOSAL:

RESOLVED, that the proper city officers are hereby authorized to amend Resolution 08-0344 (as amended by Resolution 09-0029), retaining Kennedy & Graven, Chartered, to assist the city attorney in the representation of the city in a matter currently pending in the St. Louis County district court and entitled Hartley Conrad, Paula Savela and Carol Griak v. City of Duluth, Court File No.69DU-CV-08-1793, and to be available on a continuing basis to advise the city on the issues involved in the lawsuit, as set out in the request for proposals, pursuant to its proposal dated May 20, 2008, not to exceed $180,000, payable from Fund 610-036-1650-5319.

Approved: Approved for presentation to council:

Department Director Chief Administrative Officer

Approved as to form: Approved:

Attorney Auditor

ATTY GBJ:cjk 5/28/2009

STATEMENT OF PURPOSE: This resolution will further amend Resolution 08-0344, approved May 30, 2008, and previously amended by Resolution 09-0029 dated January 26, 2009, increasing the total amount to be paid by $100,000. This increase is necessary due to the expansion of the matter in question. Whereas this matter previously only encompassed three retirees and their particular benefits it recently became a class action lawsuit covering all retirees and their dependents from January 1, 1983, to December 31, 2006. The city has asserted a counterclaim for declaratory judgment on the issue of whether the class members have a right to health benefits that are greater than active employees. The city has brought a motion for summary judgment on the meaning of the language “to the same extent as active employees.” If this matter proceeds to trial it would take place after November of 2009. It is also anticipated that any decision by the trial court would be appealed

5/02/2009 Link... Updated notes on PERA situation

March 12, 2009

     There were 75 retirees in Judge Sandvik's court today to witness another hearing. The result was mediation sessions scheduled and a status hearing set for April 14th.

     There was some discussion in the courtroom as to whether or not to expand the lawsuit and possibly have it become a class-action suit.

     All City Retirees are asked to consider a second donation to the cause as we must prevail. See Security Fund Letter

February 27, 2009 
 
The following is an interim report of your attorneys:
 
Number One! You all still have health insurance coverage.
 
It is excellent coverage that you have earned and that each City Union fought to achieve and keep for its respective members as long as possible.
 
For all of you long term loyal City employees and dependents, you have nothing to apologize for. You are not to be in any way blamed or criticized for holding onto a valuable earned possession just because the City and a series of administrations and Councils (right down to the present), failed to fund the benefit, and even to recognize, acknowledge, modify or administer the benefit in any adequate way during the 26 years its been in existence. Remember it was first proposed and offered by a prior Mayor.
 
The following paragraphs are verbatim from the Temporary Restraining Order of the Court that we secured in August 2008. It is still in existence until further order of the Court.
 
"That medical benefits claims incurred by the Plaintiffs, any covered spouses of the Plaintiffs, and all similarly situated retired Duluth City Employees and their spouses shall be paid or reimbursed at the benefits levels that were in effect on December 31, 2007

 
That the City of Duluth will make no change in the health insurance benefit levels of the Plaintiffs or spouses and all similarly situated retired employees and their spouses without prior reasonable notice to the Plaintiffs and their attorney and until further order of this Court."
 
We are presently engaged in mediation on the total subject matter. Mediation has been directed and strongly recommended by the Court. Court procedures require an attempt at ADR (alternative dispute resolution) in all cases of this nature, before there can be a final trial. Mediation is generally the least expensive, quickest and most informal such process offered.
 
The present Court schedule contemplates trial on the main issues June 23, 2009. If we don’t have some suitable basis for resolving the matter beforehand.
 
We keep very much in mind that there is no practical way for us to meet with and get written fee and representation agreements with every single one of you. However, if anyone experiences trouble in getting or maintaining the coverage you have had we want to know about it.
 
As it is we keep in close communication with your core group, which we understand has recently expanded, and with your retiree organization MAPERA. We also have received a number of valuable communications and documents from individuals that have proved very helpful.
 
Sincerely yours,                                         Sincerely yours,
  
Don L Bye                                                  Shelly M Marquardt
Attorney at Law                                          Attorney at Law 

       A short summary from several who were in attendance at the Mayor's Retiree Health Care Presentation on January 15th.

        It was not "a meeting to discuss" retiree health-medical matters, but to hear the Mayor expound on the so-called "crisis" that the City allegedly faces. The Mayor, in not too subtle terms, again attempted to place any blame on retirees......  The mailing from the Mayor said "My intention is to have a respectful and honest exchange.....etc ". That exchange as the retirees discovered that attended however, was not allowed to happen except by filling out a questionnarie to submit to the City.
       Most importantly, in response to a question from retiree Pat Alexander, he said that there would be no questions taken, or answered, from persons in the audience. So much for democracy!

January 14, 2008

          We had a hearing in District Court again today with Judge Sandvik, and we were granted continuance of the restraining order.  There will be another hearing scheduled for March 12, 2009, subject; a motion to expand the case from 3 people to all  who retired before mid 2007. The discovery cut-off date was extended to April 15, 2009. A pre-trial date was set for May 12, 2009, subject; decision on a Jury or Court Trial. If no settlement is reached, the tentative trial dates are June 23 through 26, 2009

January 9, 2009

January 7, 2009

Don Bye, Attorney
1000 Torrey Building
Duluth, MN 55802

Don:

      Today, the Duluth News Tribune carried a comment by Donny Ness which is just the opposite of that which he has been quoted in the past week. To wit: In his State of the City speech on Monday, January 5th, he spoke of his plan to sell the city’s steam and gas utilities and went on to call on "reform minded" citizens to make change possible, stressing it had to be done in a way that is civil and ethical. (Is MP& L going to be the sole bidder?)
      Then, if you look at this days News Tribune and the story headlined with "Ness calls for increased civility", but when reading into the body of the story, you will note that Ness, when discussing the City retirees, took aim at the ad hoc committee for retirees and was quoted that the retirees who filed a lawsuit blocking the city from changing health-care benefits "represent a very narrow subset of retirees, the hard-liners who are not willing to compromise." He apparently is not aware, or refuses to accept, that hundreds of retirees willingly contributed to our fund to bring about this lawsuit. Also, we compromised in 1982 to arrive at a collective bargaining solution based on the City proposal for Health-Medical coverage for retirees. 
        Further instances of his hypocrisy is the comment he made in the article of Sunday, January 4th , page A 12. The article went as follows, "Ness said he hopes to repair damaged relationships with 2008's political opponents but stressed the onus is on them to change. ‘I think it will depend on their choosing a different approach’. (The reporter then said, "if they don’t?") And Ness replied, "Then we’ll continue to experience a lack of progress, and the city will be worse off for it".
       Now, I ask, is that practicing civility? Or is that the mind set of a borderline fascist?
       Don, the reason for this note is to ask that in as much as you plan to attend Ness’s session next week to take notes, you point out to him his lack of civility when dealing with and speaking of retirees. You, as a spouse of a retiree, do have a right to point that out.

From the Ad-Hoc committee regarding the January 15th. retiree healthcare meeting called by the City.

         From our perspective, I believe that the mayor is attempting a divide and conquer tactic designed to milk as much publicity as possible for him and his program to destroy our health-medical benefit. I see nothing to be gained from attending and will not attend.  From the dozens of calls we have received from retirees we have simply told them that we will not attend, and that to attend would only serve the Mayors purposes.
 
         Also, we have a negotiated contract (s) with the City of Duluth that the Mayor, by the City Charter, is responsible to  "see that the terms and conditions of all contracts are faithfully executed" (CHAPTER IV, Section 18, paragraph (i) of the City Charter.  Additionally, in as much as there is a District Court  Restraining order prohibiting the City from making any changes to the contracts, it, again, is obvious that Don Ness is just seeking publicity, further making retirees the fall guys.
 
         We, the ad-hoc committee, had a meeting today with our attorney, Don Bye, and he said that he was going to attend just to take notes, but he felt that it would serve us no good purpose to be in attendance.

The City of Duluth and PERA have decided that the City had overpaid PERA over the past 10 years resulting in possible pension payment deductions required of retirees and probably a smaller life-time pension payout in the future for those retirees affected by this mistake on the part of the City.   

 For further information click here.  

Oct. 11, 2008

Subject: Status of our lawsuit against City of Duluth

       For your information, we were in court again on September 25^th and after some mild haggling between the lawyers, the District Court Judge, Sandvick, granted another continuance until November 26^th and continued the Restraining Order prohibiting the City from making any changes in our health-medical benefit. In other words, the contracts in effect at the time of an individuals retirement must be honored.

       There have been several attempts by the City's carrier to make changes which they claimed were to the benefit of the retiree, but were in fact negative compared to what was available previously. Example: One spouse who receives a medication directly from Walgreens which needs to be kept refrigerated was told that he no longer could receive his medication through Walgreens but that it had to come through the mail, shipped from Fairview Pharmaceuticals in Minneapolis and that it would be less expensive for the retiree. That is pure unadulterated B.S.

        It was a not too subtle way of making a change to our agreements to that they could then argue that changes have been made and no retiree has complained. Likewise, a retired Public Works employee faced the same dilemma with the same company.

We brought this to the attention of our attorney and now both the
retirees above can receive their meds from the pharmacy of their
choice, locally.

       If any retiree has had any problems with hospital-medical coverage or with pharmacy needs, please let us know to that we can pass this on to Don Bye, our attorney. Thanks,

Retirees ad hoc committee on Health-Medical Insurance

Gerry Veillet

Bob LaFlamme

Ted Griak

Eli Miletich

Sept. 25, 2008

A hearing was held in District Court today. The result was another continuation of the temporary restraining order against the City that we obtained back in July. The attorneys for both sides are scheduled to meet again with Judge Sandvick via telephone by November 25th. We will post more information as we obtain it.

Our dispute with the City is far from settled.

July 1, 2008

To all City of Duluth Retirees:

As you may or may not be aware, our court case was heard June 25th, in District Court, Judge Sandvick from Two Harbors, and a temporary restraining order was issued prohibiting the City of Duluth from making any changes to our legally negotiated Medical Health benefits. That's round one. 

You may also contact us via email at info@duluthretirees.org  

A QUICK RESPONSE WILL BE APPRECIATED. As you may know, this committee has put in a lot of hours and sweat on this whole project, and we want to see it come to a successful conclusion for the benefit of ALL RETIREES.

July 1, 2008

      Those interested in a Minnesota Appeals Court case won by retirees in a struggle similar to ours can click on this link to the Minnesota Court of Appeals decision in Joyce E. Adams, et al., Respondents,vs. Independent School District No. 316, defendant and third party plaintiff, Appellant, vs. Education Minnesota-Greenway Local #1330, third party defendant, Respondent.

Hospital-Medical

A hard won benefit.

     From time to time, the de facto committee made up of former bargaining unit presidents who negotiated the Hospital-Medical benefit at significant cost in wages and benefits, will be providing an update on our efforts to prevent the present City administration, as well as the incoming one, from taking negative action which would have a tremendous impact on our future. On Wednesday, December 12, 2007, at a meeting of the Minnesota Arrowhead Public Employee Retirees Association, we did give an overview to those in attendance with respect to our fundraising program which, we hope, will bring in enough dollars to help pay for an attorney if we end up in civil court.

      Example, only about a third of all those who were sent a letter have responded with a contribution. (see same letter under "Security Fund" at the top of this Web Page). That is not enough, what we are doing needs a common effort because it's for the common good!! Any questions, contact the de facto committee:  

   Duluth Retiree meetings usually immediately follow MAPERA
meetings.. See WWW.MAPERA.ORG for a meeting schedule.

    If you would like to help us in our effort to preserve our retiree benefits, please CLICK HERE Thanks.