05-10-2004 Council Packet - Laserfiche WebLink

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Contract City, and the third to be appointed by the two so selected. The name of each arbitrator shall be submitted in writing to the other party. In the event that the two arbitrators do not appoint the third arbitrator within 15 days after receipt of written notice of appointment of either of the first two arbitrators, the Chief Judge of the District Court of Hennepin County shall have jurisdiction to appoint, upon application of either the City of Orono or the appealing Contract City, the third arbitrator to the Board. The third arbitrator selected shall not be a resident of either Contract City, and shall be a city manager or administrator. The arbitrators' expenses and fees, together with tlie other expenses, not including counsel fees, incurred in tlie conduct of the arbitration, shall be divided equally between the parties to the arbitration. Each party to the arbitration will pay its own attorney fees. Arbitration shall be conducted in accordance with the Uniform Arbitration Act, Chapter 572 of the Minnesota Statutes, and any decision shall be rendered within 60 days of appointment of the third arbitrator. Said arbitration shall be binding on both parties. 18. Annual Audit of Actual Costs. The Contract Cities understand and agree that it is impossible to project with complete accuracy the actual costs for labor and equipment as well as the service to be required by each Contract City for the forthcoming contract year, and therefore, agree to a yearly audit to adjust the prior year's estimated contract charge as set forth above to the actual contract charge based upon the actual costs for that contract year. The most obvious example is a natural disaster or other major catastrophic event that requires police service in Spring Park at a level well beyond the normal level, and results in police costs well beyond the level reflected in the budget package. On or about April 1 of each year, the City of Orono will tabulate the actual cost of providing law enforcement services for the prior contract year and will submit to the Contract Cities a summary of said costs. The actual costs set forth for the prior contract year may result in either a credit or a debit applied to the estimated police service costs charged to the Contract Cities. The determination of a credit is ba.sed on the final actual police expenditures and final actual police revenues. The credit is calculated by pro rating the amount of the budget surplus according to the cost allocation formula. If the Contract Cities are still participating in this agreement, and if a credit is due, the credit shall be applied in the third and fourth quarters, on a pro-rated basis, in each month of the third and fourth quarters, from the estimated police service cost payments required of the Contract Cities for the current year of service; and if a debit, the Contract City shall pay the additional sum to the City of Orono together with the estimated contract charge for the current year by applying the debit in the third and fourth quarters, on a pro-rated basis, to the monthly payments in both the third and fourth quarters. The allocation of the credit or debit shall be made pursuant to the same formula set forth above. If the a Contract City is not still participating in this agreement at the time the credit or debit amount is determined as set forth above, the Contract City shall receive from (in the case of a credit) or shall make to (in the case of a debit) the City of Orono a cash payment Page 8