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NOW, THEREFORE, the parties hereto, in consideration of the mutual promises and <br />covenants hereinafter set forth, DO AGREE AS FOLLOWS: <br />A. SELECTION OF PROJECTS <br />SECTION 1. CITY and IRWD shall, by consultation between their respective staffs on <br />an as-needed basis, review all proposed CITY street improvement projects to identify each <br />project which involves the design, construction, modification and/or relocation of IRWD <br />FACILITIES having an estimated construction cost of under $100,000 and which the staffs <br />concur would be more efficiently accomplished by the CITY than IRWD. The parties agree to <br />identify all such projects in good faith, but the identification of any project shall be subject to <br />mutual approval. IRWD shall prepare the cost estimates for this purpose. For each project so <br />identified and the related IRWD FACILITIES, an Addendum in the form of Exhibit "A", <br />attached hereto and incorporated herein by this reference, shall be executed by authorized <br />representatives of CITY and IRWD, and, upon execution, shall be deemed incorporated in this <br />Agreement. Each project for which an Addendum is executed shall be deemed a "Project" as <br />used herein. <br />SECTION 2. A Project may be identified at any time so long as the related Addendum is <br />executed prior to the expiration of the term of this Agreement. <br />SECTION 3. A Project and the related IRWD FACILITIES shall continue to be <br />governed by the terms of this Agreement notwithstanding that actual total costs of items set forth <br />in Section 11 exceed $100,000 for the Project. <br />SECTION 4. Any CITY street improvement project which involves the construction, <br />modification and/or relocation of the IRWD FACILITIES with an estimated construction cost <br />over $100,000 and for which the parties desire to have the IRWD FACILITIES constructed on a <br />reimbursement basis shall be governed by a separate agreement. <br />SECTION 5. This Agreement shall not alter any other obligations which may exist <br />between the parties relating to the allocation of costs for particular IRWD FACILITIES, such as <br />easement rights. Costs which are the obligation of CITY or any party other than IRWD shall not <br />be considered within the estimates of costs for purposes of identifying Projects under Section 1. <br />Revised 12/22/04 <br />25E?4 <br />