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1.04 The Parties also recognize that they have differing quantities of water to be <br />delivered by ARWA to the SMRWTP but economies of scale can be realized through a single <br />project to design and construct the needed additional facilities. <br />1.05 The purpose of this Agreement is to outline the responsibilities of the Parties for <br />the design and construction of the needed SMRWTP Improvements and the manner in which the <br />costs will be allocated. <br />1.06 The Texas Interlocal Cooperation Act, Section 791.001, et seq, of the Texas <br />Government Code authorizes the Parties to contract with each other to perform governmental <br />functions and services. This Agreement concerns the performance of governmental functions and <br />services. <br />1.07 For the reasons stated in these Recitals and the mutual benefits and obligations <br />herein, the Parties wish to enter into this Agreement <br />ARTICLE II <br />OBLIGATIONS OF THE PARTIES <br />2.01 Coordination and Scheduling. Upon execution of this Agreement by both Parties, <br />each Party shall designate one or more representatives responsible for coordinating the various <br />activities under this Agreement. <br />2.02 Capacity Identification Requirement. <br />(a) The Parties will coordinate with ARWA on the volume of water to be <br />delivered to the SMRWTP, in accordance with the terms of their respective water supply <br />agreements with ARWA. The Parties shall also coordinate their capacity requirements in existing <br />4 <br />