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Fiber Optic Infrastructure Agreement <br /> This Fiber Optic Infrastructure Agreement("Agreement")is entered into this day of <br /> , 2012 by and between the City of Elk River, a Minnesota Municipal Corporation ("City") and <br /> Elk River Municipal Utilities, a Minnesota Municipal Utility("ERMU"). <br /> WHEREAS, the City has entered into a contract to install a backbone fiber optic ring("Network <br /> Ring"), in the location shown on Exhibit A attached hereto, for the purposes of connecting governmental <br /> facilities located within the City, including city facilities,ERMU facilities, county facilities and Elk River <br /> School District facilities;and <br /> WHEREAS, ERMU has expressed a desire to install fiber optic infrastructure to connect its <br /> facilities to the Network Ring ("Lateral Connections"), and to participate in the capital costs and the <br /> ongoing operation and maintenance costs of the Network Ring. <br /> NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, <br /> and other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged, <br /> the parties hereto agree as follows: <br /> 1. Installation. <br /> a. Network Ring. The City shall be solely responsible for installing the Network Ring and <br /> all infrastructure related thereto necessary for the Network Ring to serve its purposes. <br /> b. Lateral Connections. ERMU shall be solely responsible for installing, at its cost, the <br /> Lateral Connections, and all necessary infrastructure related thereto, between the <br /> Network Ring and the ERMU facilities which ERMU desires to connect to the Network <br /> Ring. <br /> 2. Ownership <br /> a. Network Ring. The City shall have sole responsibility for installing, operating, <br /> maintaining and repairing the Network Ring, and shall be the sole owner of the Network <br /> Ring. ERMU's participation in the capital costs and the operation and maintenance costs <br /> of the Network Ring will not entitle ERMU to any ownership of or interest in the <br /> Network Ring. <br /> b. Lateral Connections. ERMU shall be the sole owner of the Lateral Connections and all <br /> infrastructure related thereto, and shall be solely responsible, at its cost, for the <br /> installation,operation, maintenance and repair of the Lateral Connections. <br /> 3. Costs <br /> a. Initial Capital Costs. The City's contract for installation of the Network Ring is in the <br /> amount of $254,721.24. The City anticipates additional capital costs to complete <br /> installation of the Network Ring in an amount not to exceed $ . ERMU <br /> County agrees to reimburse the City for 33 percent of the total capital costs to install the <br /> Network Ring, in an amount not to exceed $ . Reimbursement of ERMU <br />