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determine whether to extend a membership offer taking into consideration the audit findings, <br />Cascade water resources, and any other factors the Board deems advisable. <br />When a municipality applies for membership, Cascade shall conduct a water supply <br />audit according to the methodology and within the period determined by the Board. Audit <br />results shall be provided to the Board and to the applicant. <br />If a membership offer is extended, it shall address the nature of the Water Supply <br />Assets being transferred or retained and the "value" of those assets in terms of the calculation <br />of an applicant's Demand Share, RCFCs and other matters relating to the rights and <br />obligations of the applicant and Cascade, which must be recorded in the form that the Board <br />determines and which will constitute, along with this Contract, the conditions under which an <br />applicant becomes a Member of Cascade. An applicant for membership shall be admitted by <br />adoption of a Resolution of the Board accepting the application for membership and <br />incorporating the terms and conditions of membership. <br />Each membership application must be accompanied by a nonrefundable application <br />fee based on the cost of the audit and other costs related to the admission of a new Member or <br />a request for new supply. The Board shall set the application fee for each applicant based on <br />the estimated cost of processing the application, including the cost of the audit. <br />As a condition of membership, each new Member admitted to Cascade shall, in <br />addition to any other applicable fees, rates, charges or assessments, pay to Cascade the <br />membership fee, as established by the Board. <br />Cascade Interlocal Contract -8- <br />Amended and Restated <br />October 26, 2011 <br />