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<br /> 2. 10 LCRA shall make recommendations and CITY shall <br /> review and approve all capital improvements to the SYSTEM, the <br /> manner and methods of financing and the manner of constructing <br /> same. Capital improvements to the SYSTEM may be constructed <br /> under a contract bid awarded by CITY or may be constructed by <br /> LCRA acting for CITY under this Agreement. In the event <br /> capital improvements are constructed under contract bid and <br /> awarded by CITY, upon request of CITY, LCRA shall act as CITY's <br /> agent for inspection and final acceptance of the construction <br /> project. All construction shall be in accordance with any <br /> applicable contract provisions, procedures and generally <br /> accepted electric industry construction practices. <br /> With respect to the construction of capital improve- <br /> ments to the SYSTEM, when requested by CITY and to the extent <br /> LCRA has the manpower and equipment available, LCRA will <br /> provide engineering services and will construct or arrange for <br /> the construction of such capital improvements to the SYSTEM, <br /> and CITY shall pay to LCRA all costs incurred by LCRA with <br /> respect to such engineering services and construction. <br /> 2. 11 LCRA shall retain physical possession of all <br /> maps, plans and specifications, and records pertaining to the <br /> PRIVILEGED AND CONFIDENTIAL <br /> - Operating Agreement - Page 9- <br />