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WHEREAS, pursuant to the Allied Waste Contract, all residential waste contracted for collection by the City is considered waste controlled by the Authority and billed by the Authority at the standard tipping fee (which includes the service contribution fee) when taken to the Zion Crossroads Transfer Station, irrespective of the hauler; WHEREAS, direct customers of Allied Waste, Inc. are not subject to the service contribution fee charged by the Authority to the Authority's customers; WHEREAS, since 2001 the City has withheld from the Authority payment of the service contribution fee component of the standard tipping fee on waste taken to the Zion Crossroads Transfer Station by the City's contracted collector until such time as an equitable cost sharing agreement could be negotiated; WHEREAS, the City, the County, the Authority and the University of Virginia entered into a Memorandum of Understanding dated January 10, 2005 with respect to the sharing of costs related to the closure, remediation and monitoring of the Landfill (the "Environmental Expenses MOU"); WHEREAS, since 2001 the City has through direct subsidy payments contributed $750,000.00, and the County has through direct subsidy payments contributed $1,000,000, to the ongoing operational costs of the Authority; and, WHEREAS, the Parties desire to enter into this Agreement to provide for local government contributions to the Authority by the City and the County to fund their proportional share of the Authority's administration and operating expenses over and above the revenues received under, and the costs covered by, the Environmental Expenses MOU and the other revenues received by the Authority. NOW, THEREFORE, the Parties agree as follows: 1. City Payment of Retained Service Contribution Fees The City agrees to pay to the Authority all remaining service contribution fees incurred by the City prior to July 1, 2007. The Authority acknowledges receipt of $400,000 on June 25, 2007 as partial payment of these service contribution fees The balance of these service contribution fees shall be paid to the Authority within thirty (30) days of the execution of this Agreement by each of the parties. In view of the necessarily imprecise nature of allocation of actual costs based upon population, the Authority agrees that it shall not impose any penalty or interest on such service contribution fees if paid by the City in accordance with this paragraph. The City agrees that there shall be no restriction on the use of • 3 o�