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Wastewater Improvements Project requires a change order directing the City's contractor to <br />perform such additional work at an estimated cost of $627,148.00. <br />5. Because both Parties would benefit from the installation of this segment of the <br />reclaimed waterline, each party will share in the costs associated with the installation as set forth <br />in this Agreement. <br />6. This Agreement concerns the performance of governmental functions and <br />services. <br />In consideration of the mutual promises and benefits contained herein, the sufficiency of <br />which is hereby acknowledged, the Parties agree as follows: <br />ARTICLE II <br />OBLIGATIONS OF THE PARTIES <br />1. The City will design and construct a pipeline segment and all related equipment <br />and appurtenances to eventually connect with the City's reclaimed water system to deliver <br />reclaimed water to Texas State according to the specifications attached hereto as Exhibit "A" or <br />as otherwise approved by the authorized representatives of the Parties. <br />a. Such reclaimed waterline segment is being constructed with the <br />understanding that it will not immediately be connected to the City's reclaimed water <br />system and that the Parties have not yet established when and under what terms and <br />conditions reclaimed water service will be available to Texas State through this segment. <br />Nonetheless, the Parties have determined that the reclaimed waterline improvements <br />should be installed at this time because it is more cost effective to install the reclaimed <br />waterline and related facilities while the construction work for the Sessom Creek <br />Wastewater Improvements Project is occurring and trenches are open. In addition, <br />performing such work at the same time as the wastewater improvements are being <br />2 <br />