Part 7 — AMENDMENT AND TERMINATION

This chapter may be amended by the city council at any time and in any manner permitted by applicable law and not inconsistent with GASB 43 and GASB 45 or IRC Section 115. Notice of such amendment shall be promptly provided to the trustees, administrator, and custodian.

(Ord. 29065.)

The trust created by this chapter is irrevocable.

(Ord. 29065.)

The trust shall have perpetual existence, except if dissolved by the city council. Following any such dissolution, the trustees shall proceed to wind up the affairs of the trust in an orderly manner and within a reasonable period of time considering relevant circumstances. After paying or making reasonable provision for the payment of all liabilities of the trust, and upon receipt of such releases, indemnities or like documentation as the trustees may reasonably deem necessary for the protection of the trust and the trustees, the trustees shall distribute the remaining property of the trust to the city, in cash or in kind or partly each. This distribution shall be made for the sole purpose of assisting the city in the payment of health and welfare benefits for retirees and their dependents who are eligible for a benefit as determined under Parts 14 and 15 of Chapter 3.36 and any other health and welfare benefits as approved by the city council, and the payment of reasonable expenses of the plan and the trust. In making the distribution, the trustees may retain an amount for reasonable, allocated administrative fees and expenses. In no event will trust assets be distributed to or revert to any entity that is not the State of California, a political subdivision of the state, or an entity whose income is excluded from gross income under IRC Section 115.

(Ord. 29065.)

Part 8 - MISCELLANEOUS

A.

The provisions of this chapter shall be construed, enforced and administered and the validity thereof determined in accordance with the IRC and the laws of the city and the state. If any provision of the trust created by this chapter is held to violate the IRC, state law, or this code, or to be illegal or invalid for any other reason, that provision shall be deemed to be null and void, but the invalidation of that provision shall not otherwise affect the trust.

B.

The headings and subheadings in this chapter are inserted for convenience of reference only and are not to be considered in the construction of any provision of the trust created by this chapter.

C.

In resolving any conflict among provisions of this chapter and in resolving any other uncertainty as to the meaning or intention of any provision of this trust created by this chapter, the interpretation that: (i) causes the trust to be exempt from tax as a governmental instrumentality under IRC Section 115; and (ii) causes the trust to comply with all applicable requirements of the IRC and the laws of the city and the state, shall prevail over any different interpretation.

(Ord. 29065.)

The provisions of the trust created by this chapter shall be binding upon the trustees, the administrator, the city and, as the case may be, the delegates, successors, and assigns of each of them.

(Ord. 29065.)

Necessary parties to any accounting, litigation, or other proceedings relating to the trust shall include only the trustees.

(Ord. 29065.)

If any provisions of this chapter shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this chapter shall continue to be fully effective.

(Ord. 29065.)

The city may not commute, sell, assign, transfer, or otherwise convey any right to assets it may have under the trust. The assets held under this trust shall not be subject to the rights of the creditors of the city, the trustees, the custodian, or the administrator, and shall be exempt from execution, attachment, prior assignment or any other judicial relief or order for the benefit of creditors or other third person.

(Ord. 29065.)

If the trustees or the administrator makes any payment that, according to the terms of the trust, and the benefits provided hereunder, should not have been made, the trustees or administrator may recover that incorrect payment, by whatever means necessary as allowed by state law, whether or not it was made due to the error of the trustees or administrator, from the person to whom it was made or from any other

appropriate party, including but not limited to deduction of the amount of the incorrect payment when making any future payments to or on behalf of the recipient of the incorrect payment.

(Ord. 29065.)

Any payment to an insurance company, or its designee, shall, to the extent thereof, be in full satisfaction of the claim of such entity being paid thereby and the trustees or administrator may condition payment thereof on the delivery by the insurance company, or its designee, of a duly executed receipt and release in such form as may be determined by the trustees.

(Ord. 29065.)