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DRAFT <br />1 1 -75-1-2-24 <br />(a) Improvement Fund. The Board may, but is not required to, create an <br />improvement fund for each CIP Project. Funds for the particular project shall be <br />placed in and expended from the improvement fund created for the project. <br />(b) Member Contributions. <br />(i) <br />Amounts. The Member responsible for constructing a CIP Project, together <br />with any other identified benefiting Members, shall contribute toward the <br />project such amounts as identified in the Board's resolution ordering the <br />project and in accordance with the terms of the cooperative agreement <br />entered into for the project. The Board will consider the benefits of the <br />improvements to one or more subwatersheds in determining which Members <br />are benefited by the CIP Project. <br />(ii) Appeal. Any Member aggrieved by the determination of the allocation of <br />Member contributions toward a CIP Project may appeal the Board's <br />determination by filling a written appeal to the Board within 30 days of the <br />date of the resolution Board's resolution. The Board shall refer a timely <br />appeal to a board of arbitration for a decision as provided hereinbelow. <br />Failure of a Member to file an appeal within the 30-day appeal period shall <br />be deemed to have consented to and agreed with the cost allocation as set out <br />in the Board's resolution. <br />(iii)8.1 Board of Arbitration. The board of arbitration shall consist of thrcc persons; one to be <br />appointed by the Board, one to be appointed by the appealing Mcmbcr, and the third to be <br />appointed by the two so selected. In the event the two persons so selected do not appoint <br />the third person within 15 days after their appointment, then the Chief Judgc of the <br />District Court of Anoka County shall have jurisdiction to appoint, upon application of <br />either or both of the two earlier selected, the third person to the board of arbitration. The <br />third person selected shall not be a resident of any City and if appointed by the Chief <br />Judge said person shall be a registered professional engineer. The arbitrators' expenses <br />and fccs, together with the other expenses, not including counsel fccs, incurred in the <br />conduct of the arbitration shall be divided equally between the Commission and the <br />appealing Mcmbcr. Arbitration shall be conducted in accordance with the Uniform <br />Arbitration Act, Minn. Stat., chap. 572B. Arbitration shall be non -binding unless the <br />Commission and the appealing Mcmbcr agrcc to binding arbitration. If the parties agrcc <br />to binding arbitration the decision of the board of arbitration shall be final and the parties <br />to the arbitration will be deemed to have consented to and agreed with the decision. If <br />these parties do not agrcc to binding arbitration, any party that does not agrcc with and <br />consent to the decision of the board of arbitration must notify the Board in writing within <br />30 days of receipt of the decision of the board of arbitration that it does not consent to or <br />agrcc with the decision. Failure to so notify the Board shall be deemed consent to and <br />agreement with the decision of the board of arbitration. Unless the parties agrcc with the <br />decision of the board of arbitration, capital improvements can only be funded in <br />accordance with Minn. Stat. § 103B.251, or secured from other sources. <br />16 <br />LW1O5-1-951303.vl <br />