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share of the City's Initial Capital Costs shall be made by ERMU within 30 days of receipt <br /> of a statement from the City detailing the total Initial Capital Costs. <br /> b. Future Capital Costs. It is anticipated that during the term of this Agreement it will be <br /> necessary to replace or upgrade components of the Network Ring and related <br /> infrastructure to ensure that the Network Ring continues to serve its purpose. City shall <br /> be solely responsible for determining what capital improvements to make to the Network <br /> Ring and for installing those improvements. ERMU agrees to reimburse the City for 33 <br /> percent of such future capital costs in the same manner as reimbursement for initial <br /> capital costs. <br /> c. Operation and Maintenance Costs. The City anticipates that annual costs for operation <br /> and maintenance of the Network Ring will be approximately $ . ERMU <br /> will provide and locate services, pursuant to Paragraph 4(c) of this Agreement in lieu of <br /> contributing to the annual operation and maintenance costs. <br /> d. Repair Costs. The City will be responsible for operation, maintenance and repair of the <br /> Network Ring. If the Network Ring is damaged, the City shall attempt to recover the cost <br /> of repair from the responsible party or from the City's insurance coverage. ERMU will <br /> reimburse the City for 33 percent of all unrecoverable repair costs. Reimbursement shall <br /> be made within 30 days of receipt of a statement for repair costs. <br /> e. Lateral Connection Costs. ERMU shall be responsible for 100 percent of the installation, <br /> operation, maintenance and repair costs for Lateral Connections between the Network <br /> Ring and ERMU facilities. <br /> 4. Operation and Maintenance. <br /> a. Network Ring. The City will be solely responsible for operating, maintaining and <br /> repairing the Network Ring. The City will maintain and administer the Network Ring <br /> and all connections thereto, including a central patch panel and all other infrastructure <br /> related to the construction, operation, maintenance and repair of the Network Ring. <br /> ERMU traffic through the fiber optic strands will transit through the Network Ring at the <br /> physical layer only. That is, fiber optic strands transporting ERMU traffic will be <br /> physically housed in Network Ring infrastructure owned and operated by the City, but at <br /> no time will Ethernet frames, IP packets, ATM cells or similar upper layer protocols be <br /> transported directly between the City and ERMU. ERMU will be responsible, at its own <br /> cost, for its own connectivity and access to the internet or any other services. The City <br /> will use its best efforts to keep the Network Ring operational at all times, with the <br /> exception of scheduled down time for maintenance and repair. The City shall not be <br /> liable to ERMU for any direct, indirect or consequential costs or damages to ERMU as a <br /> result of planned or unplanned service outages of the Network Ring. <br /> b. Lateral Connections. ERMU shall be solely responsible, at its cost, for installing, <br /> operating, maintaining and repairing Lateral Connections. Lateral Connections may only <br /> be connected to the Network Ring by the City or a contractor authorized, in writing, by <br /> the City to make the connection. Any damage done to the Network Ring as a result of <br /> unauthorized connection by ERMU to the Network Ring shall be the responsibility of <br /> ERMU. ERMU shall not be liable to the City for any direct, indirect or consequential <br />