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CENTENNIAL FIRE DISTRICT JOINT POWERS AGREEMENT SECTION X DISPUTE RESOLUTION 10.0 Dispute Process. When any member municipality feels that there is a misinterpretation or a violation of the specific terms and conditions of this agreement or in the situation outlined in Section 13.1 (b) they may initiate the dispute resolution process by submitting a written statement outlining the dispute or disagreement. This written statement of dispute shall be forwarded to the Committee at its next regular or special meeting. The Committee will then have six (6) month period to resolve the dispute as to interpretation or application of the terms of this agreement, the dispute shall be forwarded to the Anoka County Mediation Service or a similarly appropriate mediation service. If the municipalities can not mutually agree, through the mediation process, within 90 days as to the interpretation of application of the specific term in question, then a majority vote of member municipalities will initiate the submission of the issue to arbitration as defined in Section III. SECTION XI WITHDRAWAL 11.1 Notice. Member municipalities may withdraw from the District only in accordance with this section. Notice to withdraw may only be given during the month of December in odd numbered years, beginning with December of 1993. Such notice shall provide a minimum of two (2) years notice to the remaining municipalities of the intent to withdraw. 11.2 Withdraw Damages. Municipalities giving withdraw notice in 1993 shall pay total damages equal to thirty percent (30%) of their contribution for all District costs for the 1993 year. Such damages will be distributed to the remaining Municipalities based on their percentage share of the current District budget contributions. If municipalities were to give notice of withdrawal in 1995, the percentage damages would be reduced to twenty five percent (25%) of the total fire operating costs distributed by that municipality. In 1997 it would decrease to ten percent (10%); in 1999 it would decrease to five percent (5%); and starting in 2001 and thereafter, there will be no damages for withdrawal. Such damages shall be paid to the other municipalities at the time notice is given. The withdrawing municipality shall always be responsible for payment of the remaining two (2) years of contributions and shall be a full participant in the operation of the District until its withdrawal is effective. 11.3 Refund of Damages. During a six (6) month period, following the notice to withdraw, a municipality may abandon that withdrawal and determine to stay in the District. If that occurs within a six (6) month period, the damages paid to the remaining municipalities will be refunded to the municipality which had originally given notice to withdraw. Page # 10