A sanitary districtshall be fairly compensated for losses resulting from annexationby a city. The governing body of a city or city utilityand the board of trustees of the sanitary district may agree to terms which provide that the facilities owned by the sanitary districtand located within the city shall be retained by the sanitary district for the purpose of sanitary service to customers outside the city. Ifan agreement is not reached within ninety days, the issues may be submitted to arbitration. Ifsubmitted, an arbitrator shall be selected by a committee which includes one member of the governing body of the city or its designee, one member of the sanitary district’s board of trustees or its designee, and a disinterested party selected by the other two members of the committee. A listof qualified arbitrators may be obtained from the American arbitration association or another recognized arbitration organization or association.
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