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_ 02/09/2015 b) Any out-of-pocket expense or loss,by way of judgment or settlement, arising out of the operation of this Agreement, within the limits of the County's self-insured retention shall be shared by the parties in accordance with the formula as described in Article V (b). Article VII -EFFECTIVENESS This Agreement shall be effective upon its execution by all Member Agencies. It is effective as to new Members Agencies upon adoption and approval by the Council and by the new Member Agency's governing body. This Agreement shall continue in effect until terminated as provided herein. Article VIII—TERM AND TERMINATION 8.01 Withdrawal by Members a) Any Member Agency may withdraw from this Agreement by written notice given by such Member Agency to all other Member Agencies,which notice shall be given at least 120 days prior to the commencement of the fiscal year in which it is to take effect. For the purpose of such notice, a fiscal year is defined as July 1 of a calendar year through June 30 of the succeeding calendar year. b) Any former or prospective Member Agency may enter or re-enter the organization by petition to the Council by its governing body, and majority approval of the petition by the Council. Upon approval,the new Member Agency must agree in writing to all terms of this Agreement. c) Should a Member Agency withdraw less than 120 days prior to the commencement of the fiscal year,the withdrawal will be effective but that Member Agency will be responsible for its calculated contribution for that year pursuant to Article V. d) Should a Member Agency give required notice and withdraw from the Agreement, the prior contribution of that Member Agency will be divided equally by formula among the remaining Member Agencies. 8.02 Termination of Organization and Disposition of Surplus Money and Property This Agreement shall terminate effective upon a vote of the Council, the County and by at least eleven(11)cities representing the majority of the population of the County. In the event that the Organization ceases to exist, surplus funds will be returned consistent with Section 6512 of the Government Code in proportion to the contributions made. The Organization does not intend to acquire title to any property. But in the event that it does,title to all property acquired by the Organization, shall be owned by the County of San Mateo to be used for"County Wide"purposes. 8.03 Amendments Any proposed Amendments to this Agreement may be recommended by the Council but must be ratified by each Member Agency's governing body. 8.04 Review of this Agreement The Council will conduct a review of this Agreement in 2020 and every five years thereafter to determine whether any changes to the Agreement are necessary or advisable. In the event that the Council concludes that changes should be made, each Member Agency representative will take those recommended changes to the governing body of the Member Agency for ratification. 8.05 Bylaws The Council may, from time to time, adopt and/or amend Bylaws for the conduct of its affairs; provided the purpose is consistent with this Agreement and/or are necessary and appropriate. October 17,2014 Page 10 RESO.#15390 MUFF#304