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222. EXHIBIT ESI PROGRAM AGREEMENT ELECTRIC SYSTEM INSPECTION SERVICES The City of San Marcos ("Customer") and the Lower Colorado River Authority ("LCRA") have entered into an Agreement for Technical Services dated August 25, 1992. The Electric System Ins ection Services Program Agreement ("Program Agreement") entered into this day of , 20?_iall become a part of said Agreement for Technical Services as Program Agreement Exl ibitESl. With respect to work LCRA agrees to perform for Customer on or after this date, this Program Agreement between Customer and LCRA replaces the original Program Agreement executed April 24, 1995 and the Addendum to Distribution Engineering Contract Services Program Agreement dated January 22, 1997. The original Program Agreement and the Addendum to Distribution Engineering Contract' Services Program Agreement shall remain in force and effect with respect to any work LCRA has agreed to perform under them for Customer prior to this date until that work is completed. The purpose of this new Program Agreement is to provide a method for a biennial update to the pricing structure in keeping with the actual cost of the inspections to LCRA. As people find more ways to use electricity, efficiency of the distribution system will become more important. LCRA desires to assist customers in operating and maintaining an efficient electrical distribution system. LCRA has special expertise in electric distribution system inspection and applicable codes and is willing to provide this expertise to customers. CONTRACTSCOPE: The customer shall provide I. A set of base maps of the electric system showing streets, alleys, rivers, creeks, primary poles, secondary poles, transformers, fuses, capacitors, regulators, street lights, services, secondaries, and other appurtenances. The base map shall be in digital form using AutoCAD 2000 or later or a form that AutoCAD can import. 2. Notification to the public that LCRA personnel will be performing the inspections during the inspection period. 3. Notify and/or accompany the inspectors to gain access to individual private properties having limited or no public access. LCRA shall provide the following services to Customer: I . With the assistance of the customer, LCRA will locate new facilities that have been added to the system since the last inspection. 2. Add to the base map any changes to the system such as adding, removing, or relocating poles, lines, transformers, capacitors, fuses, and other electrical equipment attached to the electric distribution lines. 3. Beginning within the next twelve (12) months and subsequently every second, third, fourth, or fifth year thereafter, as agreed on the attached Pricing Sheet, the customers electric system will be inspected visually by a qualified inspector to locate items that are in need of repair or replacement. The inspector will also record any situation not in keeping with the National Electric Safety Code. 4. At intervals between the visual inspection as agreed herein, certified infrared specialists will inspect the electric system to locate and record any overheated connections, equipment, or conductor. The infrared inspection will be performed thereafter every second, third, fourth, or fifth year. A cycle shall be the completion of one visual and one infrared inspection on customer's system. 5. A Professional Engineer will review the inspection results and make recommendations where appropriate. 06/09/03 L O W E R C O L O R A D O R I V E R A U T H O R I T Y