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material and equipment necessary to perform services including, but not limited to, the following: <br />engineering design, project management and material procurement of distribution, substation and <br />distribution facilities (such as distribution under built on transmission structures, etc.), <br />distribution, substation, and distribution construction and maintenance (including tree trimming <br />and ROW clearing), relaying and control, metering, protective equipment testing, fleet repair and <br />maintenance, all materials associated with the foregoing, lease of mobile transformers and other <br />equipment, communication services including fiber optic lease, marketing and consulting services, <br />and any other services or offerings mutually agreed upon by the Parties (collectively, "Services") <br />when needed on the joint Facilities of LCRA TSC and SMEU, subject to the terms and conditions <br />of this Agreement. <br />b. SMEU may also, pursuant to this Agreement, upon the consent of LCRA and LCRA <br />TSC, engage the services of a third party or parties, to perform or assist in the performance of the <br />Services. <br />1. If SMEU engages a third party or parties to provide services described in this <br />Agreement, SMEU or another entity agreeable to LCRA and LCRA TSC shall act as the <br />project manager with respect to such services. <br />2. A Party acting as Project Manager shall exercise the same judgment, care and <br />professionalism as used in managing its own contracts. <br />1.2. Performance of Services under the Agreement shall be initiated by a written work order <br />signed by both SMEU, LCRA TSC and LCRA. The work order shall identify the subject Facilities <br />and the Services to be performed, provide a schedule for the performance of Services, contain an <br />itemized estimate of the costs and expenses for Services performed under that work order together <br />with a "not to exceed" total cost. <br />1.3. Meaning of Transmission and Distribution; <br />a. As used in this Agreement, all references to transmission facilities and related <br />equipment in the case of LCRA mean transmission and related equipment owned and <br />or operated by the LCRA Transmission Services Corporation (TSC), a nonprofit <br />corporation created pursuant to Chapter 152 of the Texas Water Code. LCRA provides <br />all required services to TSC through a services agreement between LCRA and TSC. <br />b. As used in this Agreement, all references to distribution facilities and related <br />equipment in the case of SMEU mean electrical facilities operated below 60 kV and <br />related equipment owned and or operated by San Marcos Electric Utility. <br />Interlocal Cooperation Agreement, San Marcos — LCRA and LCRA TSC Page 2 of 7 <br />