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,. CENTENNIAL FIRE DISTRICT JOINT POWERS AGREEMENT SECTION ill ARBITRA nON 3.1 Arbitration Procedures. (a) Upon the City Council of two member municipalities agreeing to proceed to arbitration in the types of disputes outlined in Section 10.1, the issue shall be submitted to the American Arbitration Association, which shall, as soon as reasonably possible, submit a list of potential arbitrators to each of the municipalities. No disputes except those proceeding forward from section 10.1 shall be subj ect to arbitration. Except as identified herein, the commercial arbitration rules of the American Arbitration Association shall apply to an arbitration pursuant to this agreement. The municipalities shall, within thirty (30) days of receipt of the list of potential arbitrators submit the rank ordering of their municipality preference for arbitrators. The arbitrator having the highest ranking, across all member municipalities, will be selected as the arbitrator for the issue. The municipalities may, by unanimous agreement, select one (1) arbitrator from the list or any other qualified individual. (b) Within thirty (30) days after the appointment of the arbitrator and no sooner than ten (10) days following written notice to the member municipalities, the arbitrator shall commence a hearing on the dispute. ( c) The hearing shall be recorded and may be transcribed at the request and expense of any municipality. All hearing proceedings, debates and deliberations shall be open to the public, and shall take place at such times and places as contained in the notice, or as thereafter publicly stated in the order to adjourn. (d) At the close of the hearing, and within thirty (30) days, the arbitrator shall prepare written findings and make a written decision which shall be served by mail upon the municipalities, and shall be binding upon all member municipalities. 3.2 Arbitrator's Authority (a) The arbitrator shall have no right to amend, modify, nullify, ignore, add to, to subtract from the terms and conditions of this Joint Powers Agreement. The arbitrator shall consider and decide only the specific issue( s) submitted in writing by the municipalities, and shall have no authority to make a decision on any other issues not so submitted. (b) The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way the applicable application oflaws, rules, or regulations having the force and effect oflaw. Page # 3