Napa City Council
June 20, 2023

RECORDING REQUESTED BY
AND
WHEN RECORDED MAIL TO:

NapaCountyClerk of theBoard
1195 Third Street, Suite 310
Napa, California 94559
City of Napa
P. O. Box 660
Napa, CA 94559
Attn: City Clerk
Fees waived pursuant to Govt Code
527383)
APNs: 003- 272- 013, 003- 272- 014
NapaCountyAgreementNo.. 7j11
OPERATIONS AND USE AGREEMENT FCityeofNapaforthe FIFTH STREET PARKING GARAGE ement No.9 �� 1 This OperationsandUseAgreementfortheFifth StreetParkingGarage ("Agreement") is made and entered into as of ,/ 1 , 2009byandbetweentheCountyof Napa, apolitical subdivision of the State of California (" County"), theCity of Napa, a California chartercity City"), Channel Properties Inc., a California corporation (" Riverfront"), Napa Mill, LLC, a Californialimitedliabilitycompany ("Mill') andAndreaSchrader, anindividual ("Schrader").

Riverfront, Mill and Schraderarereferredto collectively in this Agreementas "Participants."

RECITALS
A. On October7, 2003, theCityandCountyenteredintoa Memorandumof Understanding MOU") identifiedasNapaCountyAgreementNo. 6148, andCity of NapaAgreementNo. 8428. TheMOU (seetheEighthRecitalandParagraph7) anticipated, amongotherprovisions, thatthepartieswould enterinto separateagreementsregardingthesharingof responsibilities related to development of a future parking facility ("Garage"). The MOU anticipated that the Garagewouldbelocatedonaportionof theCounty -ownedpropertylocatedat 1195Third Street in the City of Napa ( APN 003- 272- 013 and APN 003- 272- 014) (" Original Site"), unless an alternativemutually acceptablesitewas identified.

B. On December7, 2004, theCity andCountyenteredintoaParkingGarageCooperative Agreement ("Original Agreement') identified asNapa County AgreementNo. 6372, and City of Napa AgreementNo. 8688, attachedas Exhibit H hereto. Among other provisions regardingthe sharingof responsibilitiesrelatedtodevelopmentof thefutureparkingfacility, theOriginal Agreementidentifiedanalternativemutuallyacceptablesitefor thedevelopmentof theGarage, to be locatedon the County -ownedblock borderedby Coombs, Third, Fourth, and Randolph Streets (APN 003-213-008, 009, and010). Thatsitewasformerlyusedby theSullivanShelter and is referred to herein as the " Sullivan Site."
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C. On January24, 2006, theCity andCountyenteredintoa FirstAmendmenttotheOriginal Agreement (" First Amendment"), attachedas Exhibit H- 1hereto, by which the City and County modifiedspecifiedtimingrequirementsof OriginalAgreementParagraph8 toprovide, generally, for thedepositof requiredconstructionfundsintoa specifiedconstructionaccountby March31, 2006, biddingforconstructionin theSpringof 2006, andcontractawardfor the GaragebytheSummerof 2006.

D. On May23, 2006, atajoint meetingof theCity Council (" Council") andtheCounty Board of Supervisors (" Board"), the Council andtheBoard directedthe respectiveCity and Countystaffmembersto pursuedesignandconstructionof theGarageattheOriginalSite, asa design -buildproject, potentiallyusingsupplementaryfundingfromprivateownersofadjacent properties, andtomodifythetermsof theOriginalAgreement, asmodifiedby theFirst Amendment, accordingly. A mapandlegaldescriptionof theOriginalSiteareattachedhereto as Exhibits A and B, respectively.

E. On February27, 2007, theCity andCountyenteredintoa SecondAmendmenttothe Original Agreement, as modified by the First Amendment (" Second Amendment"), attached heretoasExhibit11-2, bywhichthepartiesmodifiedtheOriginalAgreementtoreflectthe following: theGaragelocationattheOriginalSite; anincreasein Garagespacesfrom approximately440spacestoapproximately470spaces; anincreasein thecostof buildingthe Garageto approximately $15,200,000; andtheneedfor theCity todedicateaportionof its Fifih Streetrightof wayto theCounty. TheSecondAmendmentalsoprovideda revisedtimelinefor developmentandconstructionfunding, a reviseddiagramfortheGarage, reviseddefinitionsof theuses of spacesin the Garage, and revisedprovisions relatingto the participation of the Participantsin thecostsof constructingandoperatingtheGarage. TheOriginalAgreement, as modifiedbytheFirstAmendmentandtheSecondAmendment, is collectivelyreferredtoin this Agreement as the " Cooperative Agreement."
F. On January 9, 2007; the Board approvedan agreementwith eachof theParticipants Participant Agreements"). Each Participant Agreement provides to the respective Participant designatedparking spacesin the GaragethatParticipantmay makeavailable to tenants, employees, andvisitorstotheirpropertieslocatedin thevicinityof theGaragein consideration foreachParticipantmakingaproportionatefinancialcontributiontobothcapitalandoperating costs of the Garage. The Participant Agreements also contemplate that each of the Participants will be a partyto this Agreement.

G. On January9, 2007, theBoardauthorizedtheCounty's Directorof PublicWorksto request design -build proposals from five pre -qualified design -build entities for the design and construction of the Garage in accordance with Public Contract Code Section 20133. The design of the successfulbidder increasedthenumberof parking spacesto 485.

H. The CooperativeAgreementand the ParticipantAgreementsanticipatethatthe City, County andParticipantswill enterinto a separateagreementto specify, amongotherthings, the numberof parkingspacestobeallocatedtousesby theCounty, theParticipantsandtheCity; and to specify theresponsibilitiesfor daily management, operation, andmaintenanceof the

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Garage. The parties intend this Agreement to implement these provisions of the Cooperative Agreement and the Participation Agreements.

1. This Agreementadditionally establishesthe equitableoperationalandmaintenancerules for theGaragewhich areintendedto ensurethateachpartywill bearits proportionateburdenof expenses for operation and maintenance of the Garage.

NOW THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

DEFINITIONS.

Thefollowingcapitalizedtermsusedin thisAgreementshallhavethemeaningssetforth in this Section 1.
a) " AdministrativeandOverheadCosts" meansall Countystafftimerelatedto the operationof theGarage, including, butnotlimitedto, theauditingandaccountingof funds related to the Garage, and legal services provided in connection with the Garage. b) " ADA ParkingSpace" meansa spacein theGaragethatis designedtobe accessible to persons with disabilities.
c) " Annual Budget" means the annual Fiscal Year budget for the operation and maintenance of the Garage as set forth in Section 5.2 of this Agreement. d) " Artwork" meansanyworkof artinstalledin theGarage, includingbutnot limited to murals and artisticsignagecreatedby artistGordon Huether. e) " Auditor" is defined in Section 5.5(f) of this Agreement. f) " City" meansthe City of Napa, a California chartercity. g) " City Manager" meansthedulyappointedCity Managerof theCity or that person' s designee.
h) " City UseParkingSpace" meansa spacereservedfor usebytheCity for such purposesas theCity shall determine (as describedin Sections3. 3(b) and 7 of this Agreement), includingbutnotlimitedtopublicparkingorleased, licensedorpermitparking. i) " CooperativeAgreement" hasthemeaningsetforthin RecitalE above. 0) " County" meansthe County of Napa, a political subdivision of the Stateof California.
k) " County Executive Officer" meanstheduly appointedExecutive Officer of the County or thatperson's designee.
1) " CountyExclusiveParkingSpace" meansa spacereservedforusebytheCounty for suchpurposesastheCountyshalldetermine (asdescribedin Sections3. 3(d) and7 of this Agreement), includingbutnotlimitedtopublic, leased, licensedorpermitparking. County purposesmay include County vehicleparking, County employeeparking, County visitor parking, or parkingforanyotherpersonsassociatedwithservicesprovidedby County. m) " CountyHoliday" meansanydayin acalendaryearthatis observedasaCounty Holiday. EachCountyHolidayis identifiedin ExhibitE. Thedeletionor additionof any CountyHolidaymaybemadebytheCountyBoardof Supervisorsafterwrittennoticeis providedbytheCountytotheCity andtheParticipants.
n) " Designation" means the amount of cash reserves designated for capital improvements and expenditures for the Garage, as described in Section 5. 6below.

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o) " Effective Date" means the date as of which the parties have executed this Agreement as set forth in the first sentence of this Agreement. p) " FiscalYear" meansa 12monthperiodcommencingon July 1andconcludingon thefollowingJune30th.
q) " Garage" meansthe485-spaceparking garagethathas been constructedon the Original Site.
r) " Joint Use Parking Space" meansa parking spaceavailable during Work Hours for useby Countyfor Countypurposes, or useby anymemberof thepublic, on afirst-come first-servedbasis. DuringNon -WorkHours, Joint UseParkingSpacesshallbefor PublicUse. s) " Mill` meansNapa Mill, LLC, a California limited liability corporation. t) " MotorcycleParkingSpace" meansaparkingspacedesignedfor andavailablefor use by motorcycles.
u) " MOU" hasthemeaningsetforthin RecitalA above.
v) " Net Requirement" meansthetotal amountrequiredeachfiscal year to keepthe Garage operational, as described in Section 5.5 of this Agreement. w) " Net RequirementShare" meansthe proportional shareeachparty is requiredto contributeforoperatingandmaintainingtheGarageasdescribedin Section5.5 of this Agreement.
x) " Non -Work Hours" meansanyhourthatis notaWork Hour. y) " Original Site" means the siteat 1195 Third Street (APN 003- 272- 013 and APN 003-272- 014) asshownonthemapattachedasExhibitA anddescribedin ExhibitB. z) " Parking Ordinance" meansChapter 10. 12 (County Parking Lots) of theNapa CountyCodeassuchmaybeamendedfromtimetotimebytheNapaCountyBoardof Supervisors; provided, however, CountyshallprovidetheCity andeachParticipantwithatleast 30daysnoticepriortotheintroductionof anordinanceamendingtheParkingOrdinance. aa) " Participants" meansRiverfront, Mill andSchradercollectivelyoranyoneof them, or anysuccessorto Riverfront, Mill or Schraderaspermittedunder this Agreement. bb) " ParticipantUseParkingSpace" meansaspacereservedfor usebya Participant, or personsauthorizedby theParticipant.. for suchpurposesas the Participant shall determine (as describedin Sections3.3(a) and7of thisAgreement), includingbutnotlimitedtopublicparking orleased, licensedorpermitparking.
cc) " Participation Agreement[s)" meanscollectively the Participation Agreements betweentheCountyandRiverfront, Mill andSchraderor anyoneof thoseagreements. Eachof theParticipationAgreementsis datedJanuary9, 2007andis attachedheretoasExhibitsI; 1- 1 and I- 2.
dd) " PublicUseParkingSpace" meansa parkingspacethatshallbeopenfor useby any member of the public.
ee) " Regular Parking Space" meansany parking spacethat is not an ADA Parking SpaceorMotorcycleParkingSpace.
ff) " Riverfront" meansNapa Riverfront, LLC, a California limited liability corporation.
gg) " SharedMaintenanceandOperatingGarageCosts" meansthecostsassociated withoperatingandmaintainingtheGarage.
hh) " SharedMaintenanceandOperatingGarageRevenues" meanstherevenues relatingto theoperationandmaintenanceof the Garage, asdescribedin Section 5.4 of this Agreement.

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ii) " SharedParticipantUseParkingSpace" meansanyparkingspacethatis designatedby theParticipantsforshareduseamongtheParticipants. 6j) " Schrader" means Andrea Schrader, an individual.
kk) " Term" means the term of this Agreement as determined pursuant to Section 2. 4 and Section 2.5 of this Agreement.
11) " Transfer" is defined in Section 7. 1 of this Agreement. mm) " WorkHours" meansthehoursof 7:00a.m. to6:00p.m., Mondaythrough Friday; provided, however, Work HoursshallnotincludeanyCountyHoliday.

2. GENERAL PROVISIONS

2. 1 Exhibits. Thefollowingexhibitsareattachedtoandincorporatedin this Agreementby this reference.

Exhibit A" Map of OriginalSite
Exhibit B" Legal Description of Original Site
Exhibit C" Floor PlansShowingAllocationof Spacesin Garage Exhibit D" Chart Showing Allocation of Spacesin Garage
Exhibit E" County Holidays
Exhibit F" Garage Maintenance and Operation Standards
Exhibit G" First Year Budget for Maintenance Expenses
Exhibit H" Cooperative Agreement
Exhibit H- 1" First Amendment to Cooperative Agreement
Exhibit H- 2" Second Amendment to Cooperative Agreement Exhibit 1" ParticipantAgreementbetweenCounty andRiverfront Exhibit 1- 1" ParticipantAgreementbetweenCounty andMill Exhibit 1-2" ParticipantAgreementbetweenCounty and Schrader 22 Overall Purpose. The purpose of this Agreement is to provide for the parties' use of the Garage, for the operation and maintenance of the Garage, and for the parties' contributions tothecostsof operatingandmaintainingtheGarage.

2. 3 Relationship to Other Agreements.
a) To the extentthereis any conflict betweentheprovisions of this Agreement and the provisions of the Cooperative Agreement, the provisions of this Agreement shall prevail. Except as to any such conflict, this Agreementis not intendedto amendthe Cooperative Agreement, and the Cooperative Agreement shall remain in full force and effect. b) To theextentthereis anyconflictbetweentheprovisionsof this Agreementandthe provisions of any of theParticipantAgreements, the provisions of this Agreementshall prevail, Except as to anysuch conflict, this Agreement is not intendedto amendany of theParticipantAgreementsand the ParticipantAgreementsshall remain in full force and effect.

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c) The County and City agreethatthe Cooperative Agreementand this Agreementareintendedto fully satisfy subsections (a), (b), and (d) of section 7 of theMOU.

2. 4 Term.
a) Unless terminated earlier pursuant to the provisions of this Agreement, the Term, with respectto theParticipants, shall be fifty- five (55) yearsfrom theEffective Dale, provided, however, thatthe Term for a Participantmay be extendedpursuantto Section 2.5. b) Unless terminated earlier pursuant to the provisions of this Agreement, the Term, withrespecttotheCountyandCity, shallbethelongerof (i) fifty-five (55) yearsfromthe Effective Date or ( ii) the functional life of the Garage structure. For the purpose of this Agreement; the "functional life' of theGarageshall meanthatthe County continuesto operate all oraportionof theGarageforparkingpurposes, andtheGaragehasnotbeendemolished pursuant to Section 6 of this Agreement.

2. 5 Extension of Term for Participants. At leastonehundred twenty (120) days prior to theendof the Term establishedby subsection (b) of Section 2. 4, the County may give the City and each Participant written notice that it plans to discontinue use of the Original Site as a Garage. If theCountyfailsto givesuchnotice, theneachParticipant, City andtheCountyshall negotiatein good faith an extensionof theTerm as it applies to the City and theParticipants under the same terms and conditions as are set forth in this Agreement.

3. USE OF PARKING STRUCTURE

3. 1 Numberof Spaces. The Garagehas485automobileparkingspaceslocatedas follows:

First level 106Regular Parking Spaces
4 ADA Parking Spaces
Second level 121RegularParkingSpaces
2 ADA ParkingSpaces
Third level 121Regular Parking Spaces
2 ADA Parking Spaces
Fourth level 127RegularParkingSpaces
2 ADA Parking Space
TOTAL: 485 Parking Spaces
In addition, thereare10MotorcycleParkingSpacesonthesecondlevelof theGarage.

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3. 2
as follows:

Allocation of Spaces.
a) First level. On the first level of the Garage, the spaces shall be allocated City UseParkingSpaces:

Joint UseParkingSpaces:

Joint UseParkingSpaces:
85 Regular Parking Spaces
21 Regular Parking Spaces
4 ADA ParkingSpaces
b) Secondlevel. On the secondlevel of the Garage, the spacesshall be allocated as follows:

Joint Use Parking Spaces: 121Regular Parking Spaces
Joint Use Parking Spaces: 2 ADA ParkingSpaces
Joint Use Parking Spaces: 10MotorcycleParkingSpaces
c) Third level. On the third level of the Garage, the spaces shall be allocated as follows:

Participant Use Parking Spaces: Riverfront 46RegularParkingSpaces Participant Use Parking Spaces: Mill 46 Regular Parking Spaces Participant Use Parking Spaces: Schrader 28 Regular Parking Spaces Shared Participant Use Parking Spaces: 2 ADA ParkingSpaces Shared Participant Use Parking Spaces: 1RegularParkingSpace d) Fourth level. On the fourth level of the Garage, the spaces shall be allocated as follows:

County Exclusive Parking Spaces: 85RegularParkingSpaces Joint Use Parking Spaces: 42 Regular Parking Spaces
Joint Use Parking Spaces: 2 ADA Parking Spaces

3. 3 Operational Rules for Spaces.
a) Joint UseParkingSpaces. SpacesdesignatedasJoint UseParkingSpaces shallbeavailableduringWorkHoursforusebyCountyfor Countypurposes, or useby any memberof thepublic, on afirst-comefirst-servedbasis. DuringNon -Work Hours, spaces designatedasJoint Use ParkingSpacesshallbeavailableasPublicUse ParkingSpaces. b) City UseParkingSpaces. SpacesdesignatedasCity UseParkingSpaces shall be usedfor such purposesas the City shall determine, including but not limited to public parking or leased, licensed or permit parking, subjectto the standardsand restrictionscontained in Sections 3.4, 3. 5and 3.6 below.
c) ParticipantUseParkingSpaces. SpacesdesignatedasParticipantUse ParkingSpacesshallbereservedfor theexclusiveuseof theParticipantsorperson(s) authorized

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by the Participantsto utilize said spacessubjectto the standardsand restrictionscontainedin Sections 3.4, 3.5, and 3.6.
d) CountyExclusiveParkingSpaces. SpacesdesignatedasCounty ExclusiveParkingSpacesshallbereservedfortheexclusiveuseof theCounty, subjectto the standards and restrictions contained in Sections 3. 4, 3.5, and 3. 6. e) Changes in Operational Rules. The parties share a mutual goal of operatingtheGaragein a mannerthat: (1) maximizes the useof all parking spacesin the Garage duringthehoursof operationand (2) providesfor longer-term (e.g., all day) parking opportunitiesandincentivesin theupperlevelsof theGarage, andshorter -term (e.g., limited hours) parking opportunitiesin the lower levels closerto the entryof the Garage. At the written requestof anypartythatdocumentsa reasonablegoodfaithbeliefthatthesemutualgoalsarenot beingachieved, all partiesshallnegotiatein agoodfaithefforttoadjusttheoperationalrulesor thelocationof allocatedspaces. Any suchadjustmenttotheoperationalrulesorlocationof allocated spaces shall be documented in accordance with Section 4. 8 below.

3.4 Cooperation and Coordination in Operation of Parkine. a) Participant Cooperation for ParticipantUse Parking Spaces. The ParticipantsshalleachdeterminehowtooperatetheParticipantUseParkingSpaces, subjectto approvalof the County which approvalshall not beunreasonablywithheld. The Participants have determined where each of their spaces will be located on the third level. if the Participants cannotagreeonaparticularoperationalissuethataffectsall Participants, theCountyExecutive Officer shall make thedeterminationasto thatissue. The County Executive Officer' s decision shallbefinalandbindingon allparties.
b) City UseParkingSpaces. For spacesthatareCity UseParkingSpaces, theCity shalldetermine, in accordancewiththeCounty'sParkingOrdinanceandsubjectto the approvalof the County, which approvalshall not beunreasonablywithheld, the operationalrules andregulationsapplicableto such spaces, including useof leases, licensesandpermits, charges for parking, time limits on parking and othersimilar issues. The intentof this sectionis to ensure thatCountyis abletoenforcethegeneraloperationalrulesandregulationsof theGaragein accordancewiththeParkingOrdinance. This sectionis notintendedto conferanyrightsof approvaltotheCountyfor anymattersrelatingtocharges, ratesorpaymentsthatCity may imposeonitslessees, licenseesandpermittees. City shallincludeaclausein anylease, license or permitfortheuseof theGaragethatobligatesanysuchlessee, licensee, orpermitteeto comply with theprovisions of this Agreement.
c) Joint Use Parking Spaces. For Joint Use Parking Spaces, the City and Countyshalljointly determinetheoperationalrulesandregulationsapplicabletothosespaces.

To theextentfeasible, suchrulesshallbethesameastherulesapplicabletoPublicUseParking Spacesduring Work Hours with such modifications as are reasonablynecessaryto accommodate likely County uses of the Joint Use Parking Spaces.

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d) CountyExclusiveParkingSpaces. For spacesthatareCountyExclusive ParkingSpaces, theCountyshalldeterminein accordancewiththeCounty's ParkingOrdinance, the operationalrules andregulationsapplicableto suchspacesincluding useof leases, licenses andpermits, chargesfor parking, timelimitson parkingandothersimilarissues. Countyshall ensureanylessees, licenseesandpermitteescomplywiththeprovisionsof thisAgreement. e) BecausechangestotheParkingOrdinanceautomaticallybecomeapartof thisAgreement, CountyshallprovidetheCity andeachParticipantwithatleast30daysnotice priortotheintroductionof anordinanceamendingtheParkingOrdinance.

3. 5 Chancesin Allocationof Spaces. TheCity andCountymayagreetochangethe allocationof theCity UseParkingSpaces, Joint UseParkingSpacesandCountyExclusive ParkingSpacesintheGarageonthefirst, secondandfourthleveloftheGarage. Suchchanges maybenegotiatedandagreeduponbytheCountyExecutiveOfficerandtheCity Manager, and shall not requirethe approvalof the Participantsexceptas follows: the City andCounty shall not changeanyof thespacesonthesecondlevelof theGaragetoCountyExclusiveParkingSpaces unlessCounty has first offered the Participantstheopportunityto obtain ParticipantUse Parking Spaceson the secondlevel equalto the numberof secondlevel spacesthe County had plannedto convertto CountyExclusiveParkingSpaces. if theParticipantstaketheopportunitytoobtain spaceson thesecondlevel; thentheCountyshallbeentitledtoanequalnumberof spacesonthe third ]eve] for theCounty's useasCountyExclusiveParkingSpaces.

3. 6 General Use Prohibitions. City, Participantsand County agreethatin connection with and to the extent of their respective use and operation of the Garage, each will not:

Original Site;
a) Create, cause, maintainorpermitanynuisancein or abouttheGarage; b) Commit or suffer to be committedany wastein or aboutthe Garageor the c) KnowinglyallowtheGaragetobeusedfor anyunlawfulpurpose; d) Permit undueaccumulationsof garbage, trash, rubbish or any other refuse in the Garage;
e) Cause or permit obnoxious odors to emanate from or be discharged in or from the Garage;
f) Create, cause, maintainor permitany noise or soundthatis objectionable due to intermittence, beat, frequency, shrillness or loudness (excluding theoccasionalnoise from an errant car alarm);
g) Create, reuse, maintain, orpermitcreationof anydust, diri, orfly ashin excessive quantities; or

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h) Create, cause, maintainor permitany motorvehicle servicing, including butnotlimitedtothewashingof cars, orrepairshopthatprovidesanysuchservicing.

4. OPERATION OF GARAGE

4. 1 CountyResaonsibility. The Countyshallberesponsiblefor themanagementand operationof theGarageexceptasprovidedotherwisebelow. County's costsfor suchoperation and management shall be shared as described in Section 5 below.

4. 2 ValetParking. TheCity or ParticipantsmayusetheGaragefor valetparking. In suchcase, theCountyshallnotberesponsibleforpayingthecostsof oroperatingthevalet service. However, if the City or Participantchoosesto provide valetparking, thatparty shall firstobtainCountyapproval, whichapprovalshallnotbeunreasonablywithheld, of a valet operationalplandesignedtominimizeanyinterferencebythevaletoperationwithother operations in the Garage.

4. 3 Hours. TheCountyshalloperatetheGaragein accordancewiththeCounty's ParkingOrdinanceandshallkeepit openandavailableforparkingfrom5 a.m. to 11p.m. seven days a week. These hours are subject to change so that hours of operation of the Garage conform to andare substantiallyconsistentwith the hoursof operationof otherparking garagesoperated bytheCity, parkinglotsoperatedbytheCountyorparkinggaragesthatmayin thefuturebe operatedbytheCounty. TheCountyshallcooperatewithParticipantstomaketheGarage accessible at times the Garage is otherwise closed to accommodate customers of businesses on thenearbypropertiesownedbytheParticipants. TheCountyshallalsocooperatewiththeCity toextendthehoursof theGarageon anoccasionalbasistoaccommodateparkingfor special eventsorasneededtoaccommodateparkingdemand. Notwithstandinganythingtothecontrary in thisAgreement, theCity or theParticipantrequestingextendedhoursshallbearanyadditional operationalcostsof makingtheGarageaccessiblewhentheGaragewouldotherwisebeclosed.

4. 4 Security. TheCountyshallprovidesecurityfortheGarage. The levelof security serviceshall be substantiallyconsistentwith the level of service thatthe City provides in other parking structuresin downtown Napa. The City or a Participantmay provide additional security duringhoursin whichtheCountyis notprovidingsecurity. Suchadditionalsecurityshallbe coordinatedwiththesecuritytheCountyprovidesand, if morethanonepartyis providing additionalsecurity, withtheotheradditionalsecuritybeingprovidedby theCity or another Participant. NotwithstandinganythingtothecontraryinthisAgreement, theCity orthe Participant, as the casemay be, shall bearthecostsof any additionalsecurity it provides pursuant to this Section4.4. The County may employa contractorto provide security.

4. 5 SignageandEnforcement. The Countyshallberesponsibleforenforcementof theparkingrestrictionsandlimitationsonparkingprovidedforin Section3of thisAgreementor promulgatedbyapartyor partiesaspermittedby Section3 of thisAgreement. TheCountyshall alsoinstallandmaintainall signagenecessaryfor enforcementof theparkingrestrictionsand limitations.

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4. 6 ChargesforParking.
t
a) GeneralOperational/PublicUseCharges. Any chargesforparkingin City UseParkingSpacesandJoint UseParkingSpacesshallbeestablishedasa partof theoperational rules andregulationsfor thosespaces, which shall bedeterminedby the City andCounty pursuanttoSection3. 4above. Any chargesfor parkingin CountyExclusiveParkingSpaces shallbedeterminedbytheCounty. Any chargesforparkingfortheParticipantUseParking Spacesand SharedParticipantUse Parking Spacesshall be determinedby the Participants. All parkingchargesshallbeleviedequitablytotheextentpossibletoensureall usersarebeing charged similar rates; provided, however, that this provision shall not be construed to limit the abilityof anyof thepartiestoprovidefreeparkingeventhoughotherpartiesareimposing parking charges.
b) Charges for Leases, Licenses, and Permits. This Agreement contemplates thattheCity, CountyandParticipantsmayeachenterintoagreementswiththirdpartiesforthe license, permitorleaseof parkingspacesallocatedtheCity, Countyora Participant. Any chargesimposedby a party aspartof a lease, licenseor permit is not subjectto approval by any otherparty to this Agreement; provided, however, thatsuchchargesmustcomply with the equitablerequirementestablishedby subsection (a).

4. 7 Maintenanceof Garage. TheCountyshallberesponsiblefor maintainingthe Garagein good condition and repairconsistentwith customarymaintenancepractices. The County's maintenanceresponsibilitiesshallincludebutarenotlimitedto thoselistedin Exhibit F. All maintenanceshall be performedin such a manneraswill minimize noise to adjoining properties, particularlyduring thehours from 9:00 p.m. to 9:00 a.m. Any maintenanceor improvement work performed on the Garage shall be performed within a reasonable time frame, completed in a good, workmanlike manner and in such a manner as to return the Garage to no less than the same condition that it was in prior to the commencement of such maintenance or improvementwork. The CountyshallreplacevariousGarageequipmentandbuilding componentson a regular basisasnecessaryto assurethe continuedoperationof the Garage.

Notwithstandingtheforegoing, nopartytothisAgreementshallberesponsiblefor therepairor replacementof any Artwork in the Garage; provided, however, theCounty may routinely clean the Artwork. The Designation shall be used for replacement of Garage components in accordancewithSection5.6 below. Countyshallnotberesponsiblefor anyphysical improvementstotheGaragethatmayberequiredasa resultof agreementsbetweentheCity and third parties (i.e., licensees, permittees, lessees) or betweenany of theParticipants andthird parties ( i. e., licensees, permittees, lessees).

4. 8 Annual Meeting of Parties. The authorized representatives of the parties shall meet at least once a year to discuss operation of the Garage and potential changes in the operation. Theannualmeetingshalladdressallocationof spacesamongtheparties, operational rules, hoursof operation, parkingcharges, availabilityof spacesfor leaseorlicense, any expectedchangesto theannualDesignation, anyforeseeablemajor replacements, repairs, or improvementsto the Garage, adequacyof insurancecoverage, and any othermatterconcerning the operationof the Garage. Any amendmentto this Agreementrelatingto the allocation of location of availablespacesamongthe parties, the operationalrules, quality of maintenance,

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hoursof operation, theprocessof establishingparkingcharges, andavailabilityof spacesfor lease, licenseorpermitshallbesubjecttothewrittenagreementof theCountyExecutiveOfficer andtheCity Manager. Any othermodificationstotheAgreement, includingchangestothe insuranceprovisions or insurancecoverage, shall bedocumentedin accordancewith Section 9.3 below. Theannualmeetingshallalsoserveastheforumfor County's consultationwiththe otherpartiesregardingtheannualbudgetasrequiredunderSection5.2 belowandshallbe scheduledaccordingly. The authorizedrepresentativeof eachparty, for purposesof this Section, is assetforthbelow. Any authorizedrepresentativemaydelegateauthoritytoanauthorized designeebyprovidingwrittennoticetoeachotherpartypursuanttoSection9 below.

City of Nana:

County of Napa:

Private Participants:

City Manager
P. O. Box 660
Napa, California 94559- 0660
CountyExecutiveOfficer
1195 Third Street, Suite 310
Napa, California 94559
Andrea Schrader
P. O. Box 388
Napa, California 94559
Napa Mill, LLC
Harry Price
500 Main Street
Napa; California 94559
Channel Properties Inc.

Massimo Desimoni
100W. CuttingBlvd.

Richmond, California 94804

5. PARKING GARAGE COSTS

5. 1 Allocations of Costs of Garage. The City, Participantsand County shall all participatein thecostsof operatingandmaintainingtheGarageinthemannerspecifiedin this Section.

5. 2 Annual Budget. The Annual Budget for Fiscal Year 2008/ 09 is shown in Exhibit G (andit intentionallydoesnotincludeanyamountfor SharedMaintenanceandOperating GarageRevenues). Beginningin 2009, beforeApril 2ndof eachyear, theCountyshallprepare andprovide to the City andParticipantsa proposedAnnual Budget for the upcoming fiscal year,

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which budget shall be in a format similar to the budget attached as Exhibit G. The Annual Budgetshall setforth the County's good faith estimateof the expectedSharedMaintenance and OperatingGarageCosts and SharedMaintenanceand OperatingGarageRevenues for the Garage andtheNet Requirementthatthe City andParticipantswill berequiredto pay pursuantto Section5.5. TheCountyshallconsultwiththeCity andParticipantsin preparingtheAnnual BudgetandtheCity andParticipantsshallcooperatewiththeCountyin preparationof the Annual Budget. The Annual Budget shall include projected Administrative and Overhead Costs.

For Fiscal Year 2008/ 2009, the Administrative and Overhead Costs shall he 3% of the Shared MaintenanceandOperatingGarageCosts. In subsequentfiscalyears, theAnnualBudgetshall includeactualAdministrativeandOverheadCostsincurredby theCountyin thepreviousfiscal year. City andParticipantsshallprovideCountywithanycommentsorconcernsregardingthe proposedAnnualBudgetbyMay 1of eachyear. TheAnnualBudgetshallbeapprovedby all partiesadministrativelyby June 1eachyear, whichapprovalshallnotbeunreasonablywithheld.

EachpartyshallprovidesuchadministrativeapprovalbysigningtheAnnualBudget. The authorizedrepresentativesthatmayprovidesuchapprovalarethosepersonsidentifiedin Section

4.8. if anypartyfailstocommentonorapprovetheAnnualBudgetwithinthetimelinessetforth above, theAnnualBudgetshallbedeemedapprovedby thatparty. if thereis anunresolved disputeas to theproposedAnnual Budget asof June 2, County shall adoptits proposedAnnual Budgetandadjustments, if any, will bemadefollowingresolutionof thedispute.

5. 3 SharedMaintenanceandOperatingGarageCosts.
a) TheSharedMaintenanceandOperatingGarageCostsshallincludeall commerciallyreasonableexpensesandcostswhichCountyshallpayor becomeobligatedtopay becauseoforinconnectionwiththeownership, operation, repairand/ormaintenanceofthe Garage, including, without limitation:
i) all maintenance and janitorial costs;
ii) costs for all materials, supplies and equipment;
iii) costsof water, electricity, refusecollection, parking lot sweeping, landscaping, andotherutilitiesandservicesrelatingto theGarage; iv) all costs of alterations or improvements to the Garage made to achievecompliancewith anyfederal, stateandlocallawincluding, withoutlimitation, the Americans with Disabilities Act ( 42 U. S.C. Section 12101 et seq.) (" ADA"), or to reduce operatingcostsor improvetheoperatingefficiencyof theGarage; v) costs for repairs, replacements and general maintenance of the Garage, but excluding repair or replacementof Artwork andanyrepairsor replacementspaid for out of insuranceproceedsor by otherparties;
vi) costsfor maintainingmachineryor equipment (includingthe photovoltaicsystemfor thegenerationof electricity);
vii) security (pursuantto Section4. 4above) and otherexpenses incurredin connectionwithenforcingrulesandregulationsfortheGarage; viii) Administrative and Overhead Costs;
ix) anyinsurancepremiums thatarespecifically allocable to insuring the Garage;

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x) costs of third party claims arising out of the operation of the Garage (includingtheCounty'sdefenseandindemnitycosts) totheextentnotcoveredby insuranceortypicallyborneby theCounty's self-insuranceprogram; xi) transfer costs (pursuant to Section 7 below);
xii) the Designation pursuant to Section 5.6 of this Agreement; and xiii) nonrecurringcoststo remedydefectsintheoriginalconstructionof theGarage, which costsarenot coveredby warranty.
b) SharedMaintenanceandOperatingGarageCostsshallnot includeand Countyshallnotbeobligatedtopayorreimburseanypartyfor:
i) amounts expended from the Designation;
ii) depreciation or amortization;
iii) nonrecurringcostsincurredtoremedydefectsin theoriginal constructionof the Garage (if suchcostsarecoveredby warranty); iv) repairs or other work needed due to fire, windstorms, or other casualtyorcausetotheextentCountyhasreceivedinsuranceproceedsfor suchrepairsor other work; and
v) costsof special servicesrenderedto the City, Participants or other privateusersof theGaragefor whichaspecialchargeis madeincludingchargesfor off -hours accessibilitypursuantto Section4.3 aboveoradditionalsecuritypursuantto Section4.4 above.

5. 4 SharedMaintenanceand OperatingGarageRevenues.
a) TheSharedMaintenanceandOperatingGarageRevenuesshallinclude:
i) eachparty'sNetRequirementShare, includinglatefees;
ii) anyrevenuescollectedfromfines, penaltiesorotheramountsasa resultof parkingenforcementintheGarage;
iii) anyrevenuescollectedfromchargesfor Joint UseParkingSpaces this does not include charges imposed as a result of permits, leases or licenses); iv) all transfer fees as described in Section 7.1; and
v) anyotherrevenuescollectedfromuseorexistenceof theGarage outside of the original intent of this Agreement.
b) The SharedMaintenanceandOperatingGarageRevenue shall not include:
i) amountsreceivedbytheParticipantsin connectionwithany permits, leasesor license for useof thespacesdesignatedas ParticipantUse Parking Spaces; ii) amountsreceivedbytheCity forpermits, leasesor licensestopark in the Garage;
iii) amountsreceivedbytheCountyforpermits, leasesorlicensesto park in the Garage;
iv) paymentstotheCountybytheParticipantsorCity for special services described in Section 4. 3 or Section 4. 4above; v) all interest earnings on the Designation.

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5. 5 Payment to County of the Net Requirement.
a) TheNetRequirementis thetotalamountrequiredeachfiscalyearto keep theGarageoperational. TheNetRequirementShareis theamounteachpartyis requiredto pay eachfiscal year, as setforth below, and is dependenton the Annual Budget. Accordingly, althougheachparty's percentagedoesnotchange, theNetRequirementSharewill changefrom yeartoyearsinceit is dependentontheAnnualBudget. TheNetRequirementSharemay periodicallyneedtobeadjustedassetforthin Sections5.5 (c), (d) and (e) below. b) On orbeforethefifteenthdayof July, October, January, andApril of each Fiscal Year, eachof the Participantsand theCity shall pay to the County an amountequal to one-quarter (1 /4) of eachparty'sNetRequirementShareforthatFiscalYearto operateand maintaintheGaragefor thatfiscalyear. TheNetRequirementfor eachpartyrepresentsa percentageof thetotalSharedMaintenanceandOperatingCostsfortheGarage. TheNet Requirement and Net Requirement Shares for Fiscal Year 2008- 09 are set forth in Exhibit G.

Thefirstpaymentshallbeproratedbasedon theEffectiveDate. TheCountyshallbearthecosts for its own Net RequirementShare. Paymentsaredeemedlateif not receivedwithin 30 days of the dates listed above and a late fee of 5% will be added to payments that are between 30 and 60 days late. A 10% late fee will be added to payments more than 60 days late. c) Eachparty'sNet RequirementShareshallinitiallybebasedon the followingpercentagesof theNet Requirement:

Riverfront: 9. 75%
Mill: 9.75%
Schrader: 5.94%
City: 37. 28%
County: 37. 28%
The Net Requirement Shares set forth in this subsection are based on each party's shareof the485spacesin theGaragewithoutincludingtheMotorcycleParkingSpaces andADA ParkingSpaces. The CityandCountyNetRequirementSharesarebasedontheCity andCountyeachpayingonehalf (1/2) of thecostsfor the185regularspacesdesignatedasthe Joint UseParkingSpaces, theCitypaying100% of thecostsforthe85spacesdesignatedasCity UseParkingSpaces, andtheCountypaying100% ofthecostsforthe85spacesdesignatedas County Exclusive Parking Spaces. If the allocation of spacesamongthe partiesis changed; the NetRequirementSharesof thepartiesshallbeadjustedaccordingly. d) Within onehundredand twenty (120) days following theendof each fiscal year, the County shall determinethe amountactuallyexpendedin the previous fiscal year for SharedMaintenanceandOperatingGarageCostsandtheactualamountreceivedin Shared MaintenanceandOperatingGarageRevenuesrelatingtothatfiscalyear. TheCountyshall providein writingtotheotherpartiesdetailedcalculationsshowingtheCounty's determination.

If thereis an overage, the County shall creditto the City andParticipantsthe amountof each party's overpaymentof actualNet RequirementShare, to the nextpaymentdueto the County. 1f thereis a deficit, the City andParticipantsshallpay to the County an amountequal to each

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party's underpaymentof actualNet RequirementShare. Suchpaymentshallbemadewithin thirty (30) daysfollowingreceiptof noticefromtheCountyastotheamountof a party's underpayment.
e) Notwithstandingtheotherprovisionsof thisSection5. 5, assoonasthe CountyobtainsinformationthattheactualNetRequirementis likelytomateriallyexceedthe anticipatedNet Requirementas setforth in the approvedAnnual Budget, the County shall inform theotherpartiesof theincreaseandthereasonsfortheincrease, andwill promptlymeetand conferwiththeotherpartiesconcerningtheincreasedcosts. Aftermeetingandconferringwith theparties, theCountymay, bywrittennoticetotheparties, increasetheNet Requirementforthe remainderof thefiscal year andincreasetheresulting quarterlypaymentspursuantto this Section 5. 5.
1) In the eventtheCity or a Participantdisputesthe amountof theNet Requirementasdeterminedby the County, thenthe City or Participantshall havetheright, atthe City's orParticipant's cost, andafterreasonablenoticetoCounty, toinspect, atCounty's office duringnormalbusinesshours, County's books, records, andsupportingdocumentsconcerning theSharedMaintenanceandOperatingGarageCostsandSharedMaintenanceandOperating Garage Revenues. Such inspection shall be commenced and completed within three (3) years followingtheendof thefiscalyearforwhichtheinspectionis beingcarriedout. If aftersuch inspectionand/or requestfor documentation, theCity orParticipantstilldisputestheamountof the SharedMaintenanceand OperatingGarageCosts, the City or Participant hasthe right to select an independent certified public accountant ( the " Auditor') to complete an audit of County's books and recordsto determinetheactual andproper amountof the Shared Maintenanceand OperatingGarageCosts incurredand theSharedMaintenanceand Operating GarageRevenuesreceivedandamountspayablebyCity andParticipantsfor thefiscalyear which is thesubjectof the audit. The Auditor selectedmustbe approvedby the County provided howeverthattheCounty's consentshallnotbeunreasonablywithheld. TheCountyandany otherpartiesthatdid not requesttheaudit shall be providedan opportunity to commenton, clarify, rebutor disputeany of the findings of the audit, andthe Auditor shall evaluatethe County's (andanyotherparry's) commentspriortofinalizingtheauditreport. Suchauditreport, andthedeterminationscontainedtherein, bytheAuditorshallbefinalandbindinguponall parties. If suchaudit revealsthatCounty hasover -chargedCity andParticipants, or City or a ParticipanthasunderpaidCounty, theowingpartyorpartiesshallreimbursetothenon -owing partytheowedamountwithinthirty (30) daysof submissionof theaudittoall parties. The cost of theauditshallbepaidbythepartyrequestingtheaudit, unlesstheauditrevealsthatthe County has overstated or understated the aggregate costs by more than 3%, in which case the costof the auditshall be paid by theCounty. In eithercaseif theaudit identifies a cost savings or additionalrevenuesthe costof theauditshall be reducedby saidamount(s) andthe resulting balance paid in accordance with the requirements of this section. g) TheCountyshallestablishandmaintaina separatefundthatshallbeused for all Garage revenues and costs described in this Agreement.

5. 6 Capital Expense Reserve Designation. tion. The Net Requirement shall include an amount for cash reserves designated for major capital improvements and expenditures ( the

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Designation'). TheDesignationshallbeThirtyThousandDollars ($30,000) perFiscal Year.

TheCountyshallusetheaccumulatedDesignationfundsfor majorcapitalimprovementsof the Garage as set forth in each approved Annual Budget. Major capital improvements and expendituresforthepurposesof thissectionshallconsistof anysubstantialimprovements, repairs or replacements that enhance, extend the useful life of, or add to the value of the Garage.

TheCountyAuditor -Controllershallestablishandmaintaina separateaccountforthe Designationandanyinterestearningswill beallocatedtotheDesignationaccountbalanceusing the County Treasurer -Tax Collector's interestallocation methodology, which methodologymay be adjustedas deemednecessary. At leasteveryfive (5) years, the partiesshall meetto consider changes in the amount of the Designation in light of major capital improvements, repairs, replacements, andother capital expendituresnecessaryto maintainthe Garagein good condition.

This meetingmay, but is not required, to beheld in conjunction with the annual budgetmeeting.

6. DAMAGE, DESTRUCTION, CONDEMNATION, INSURANCE AND INDEMNITY

6. 1 Damage or Destruction of Garage.
a) 1ftheGarageis damagedordestroyedbya casualtyor similareventthat resultsin areductionof parkingavailabletotheCity and/or Participants, andlessthanfifty-five 55) yearshaveelapsedfrom the Effective Date, then theCounty shall makegood faith and diligent efforts to repairor replacetheGarageon theOriginal Site, provided the County has sufficient fundsfor therepair or replacementfrom insuranceproceedsor from a third party sourceof funds. TheCountyshallnotifytheCity andParticipantsif thereareinsufficientfunds frominsuranceproceedsfortherepairorreplacementof theGarage. Withinsixty (60) days afterthisnotice, orlongerif otherwiseagreedtobytheparties, theCity andtheParticipantsshall have theright (but not the obligation) to seekandprovide funding for the neededrepair or replacement. If funding is not available from the City or Participants, and the County does not have sufficientfunds for therepair or replacementfrom insuranceproceedsor from a third party sourceof funds, thenCountyshallnotbeobligatedtorepairorreplacetheGarage. If theCounty does not elect to repair or replace the Garage, this Agreement shall terminate as to Participants andtheCity, andtheCountyshallreimbursetheCity andeachParticipanttotheextenttheydid not realize the benefits of their contributions for construction of the Garage (" Reimbursement").

Thecalculationof eachReimbursementshallbeasfollows: Thepercentageof eachpartys percentagecontributionassetforthin Section6.1(d) belowshallbemultipliedbythe Remaining GarageFunds." The Remaining GarageFunds equals: insurancefunds received by theCounty, plus remainingbalanceof theDesignation, plus the remainingbalanceof any funds thatareSharedMaintenanceandOperatingGarageRevenues, lessdemolitioncosts. County represents thal it participates in a self- insurance program as further described in Section 6.2 below.
b) If theGarageis damagedor destroyedbyacasualtyor similareventand fifty-five (55) ormoreyearshaveelapsedsincetheEffectiveDate, theCountyshallnotbe obligated to replace the Garage.
c) Withinare hundredtwenty (120) daysfollowingthedamageor destructionof theGaragedescribedin subsection (a) of thissection, theCountyshallnotifyCity

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and Participants as to whether it will replace the Garage, or whether it lacks sufficient funds for therepairorreplacementthereof. If theCountydoesnotsoelecttorepairorreplacetheGarage, then it shall demolish the Garage within a reasonable amount of time after the damage or destruction, so thattheremainingOriginal Site is in a condition substantiallysimilar to that which existed prior to the construction of the Garage. Costs incurred pursuant to this subsection shall be deemedto be a legitimateexpenditureof the Designation. If thereareinsufficient funds in the Designationand from insuranceproceedsto cover costsof demolition, thenthe City and Countyshallmeettodiscussfindingothersourcesof fundingtocoverthecostsof demolition.

After demolition of theGarage, the County shall granta right-of-way to the City for thatreal propertythatisthesubjectofResolutionR2007-141 (asgraphicallydepictedonExhibitA asthe 10,045 -square -footportionof Fifth Streetvacatedby theCity Councilto enabletheGaragetobe constructed).
d) The parties acknowledge the practical effect of a deductible amount in the County'sinsurancecoverage. Therefore, if insuranceproceedsareusedfortherepairor replacementof theGarage, thedeductibleamountof theCounty's insurancepolicyshallalsobe sharedbyeachpartyin accordancewiththepercentagecontributionsassetforthbelow. The Countywill notifythepartiesin writingregardingitsdeductiblepriortotheexecutionof this Agreement, andannuallyasapartof thepreparationandreviewof thebudgetpursuantto Section 5. 2.

For thepurposesof the foregoing calculation, the percentageof contributiontotheconstructionof theGarageof theCity, County, andeachof theParticipants consistentwiththefinancialcontributionbyeachpartyis asfollows:

City: 31. 23%
County: 43. 33%
Riverfront: 9. 75%
Mill: 9.75%
Schrader: 5. 94%
e) If theGarageisdamagedbyacasualtyorsimilareventwhichresultsin parkingspacesbeingunavailabletoapartyfor atemporaryperiod, theCounty, City, and Participantsshallmeetandconfer (usingtheproceduresof Section4.8above) ona reallocation of available spaces in the Garage. The reallocation of available spaces shall be proportional to the allocation of spaces identified in Sections 3. 1 and 3.2 above. The Net Requirement Shares will beappropriatelyadjustedif thetemporaryunavailabilitylastsfor morethan90days.

6. 2 Insurance.
a) Countyhas, andshallmaintainthroughoutthetermof thisAgreement, All Risk" propertycoverageandcasualtyandexcessliabilitypoliciestocoveranyfirst -party andthird -partyclaimsfor damagesbyoragainsttheCountyresultingfromtheoperationof the Garage. WithintheCounty's "All Risk" policytheCountymaintainsfirst -partyproperty insurance coverage in the amount of Six Hundred Million Dollars ($ 600, 000,000) and that coverageincludesearthquakeandfloodliabilitytocoveranysuchpotentialdamagetothe

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Garage. ThecasualtyandexcessliabilitycoveragelimitsareTwenty-five Million Dollars 25,000,000). TheCity andtheParticipantsshallbenamedasadditionalinsuredfor such policies. Countyshallmaintaintheabovementionedinsuranceforthedurationof this Agreement. TheCountyshallatleastannuallyprovidetotheCity andparticipantsproofof the insurancerequiredby thissubsection.
b) If aParticipantdirectly, orbyhiringavendoror contractor, performsa servicein connectionwith the operationsof the Garageincluding but not limited to valet services; theParticipantshall, or shallrequireitsvendoror contractorto, obtainliability insurancewith a minimum of One Million Dollars ($1,000,000) of liability coveragefor the performance of such services to cover such vendors or contractors. Such coverage shall be subjecttothereasonableapprovalof County's Risk Managerandverifiedby acertificateof coverage. TheotherParticipants, CountyandCity shallbenamedasadditionalinsuredsfor any such insurance coverage.

6. 3 Hold Harmless/ Defense/ Indemnification.
a) To thefull extentpermittedbylaw, eachParticipantshallholdharmless, defendat its own expense, andindemnify County, City andthe otherParticipants and their respectiveofficers, agents, employeesandvolunteersfromanyandall liability, claims, losses, damagesorexpenses, includingreasonableattorney's fees, forpersonalinjury (includingdeath) ordamagestoproperty, arisingfromall actsoromissionsof theParticipantor itsofficers, agents employees; volunteerscontractorsandsub -contractorsin renderingservicesunderthis Agreement, excluding, however, suchliability, claims, losses, damagesorexpensesarisingfrom the negligence or willful acts of the other parties or their respective officers, agents, employees or volunteers.
b) To thefull extentpermittedby law, Countyshallholdharmless, defendat itsownexpense, andindemnifytheCity, andeachParticipantandtheirrespectiveofficers, agents, employeesandvolunteersfromanyandall liability, claims, losses, damagesor expenses, includingreasonableattorney's fees, for personalinjury (includingdeath) ordamagetoproperty. arisingfromall actsoromissionsof Countyor itsofficers, agents, employees, volunteers, contractorsandsub -contractorsin renderingservicesunderthisAgreement, excluding, however; suchliability, claims, losses; damagesorexpensesarisingfromthenegligenceorwillful actsof the other parties or their respective officers, agents, employees, or volunteers. c) To thefull extentpermittedbylaw, City shallholdharmless, defendatits ownexpense, andindemnifyCounty, andeachParticipantandtheirrespectiveofficers, agents; employees, or volunteersfromanyandall liability, claims, losses, damages, or expenses, includingreasonableattorney's feesfor personalinjury (includingdeath) ordamagetoproperty, arisingfromall actsoromissionsof City oritsofficers, agents, employees, volunteers, contractorsand sub -contractorsin renderingservicesunderthis Agreement, excluding, however, suchliability, claims, losses, damagesorexpensesarisingfromthenegligenceorwillful actsof the other parties or their respective officers, agents, employees, or volunteers. d) Eachpartyshallnotifytheotherpartiesimmediatelyin writingof any claim or damage related to activities performed under this Agreement. The parties shall

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cooperatewith eachotherin the investigationand disposition of any claim arising out of the activitiesunderthis Agreement, provided thatnothing shall requireaparty to disclose any documents, recordsor communicationsthatareprotectedunderpeerreview privilege, attorney- client privilege, or attorney work product privilege.

7. TRANSFERS

7. 1 Definition of Transfer. " Transfer" meansany total or partial sale, sublicense, assignmentorconveyance, or anytrustorpower, oranytransferin anyothermodeorform, of or with respecttothisAgreement, of therightshereunderor anyinteresttherein, oranycontractor agreementto do any of the same.

7. 2 Transfer by a Participant. Subject to the terms and conditions of this section, a Participant shall havethe right to Transfer its rights underthis Agreement. Any Transfer not permittedbythissectionshallhenull andvoid. if a Participantdesiresto effectaTransfer -the ParticipantshallprovideCountyandCity withthirty (30) dayspriornoticeof anysuchTransfer, and suchTransfer shall be subjectto County andCity consent, which consentshall not be unreasonablywithheld, conditionedordelayed. Notwithstandingtheforegoing, if eachof the followingconditionsaresatisfied, aParticipant's TransfershallnotbesubjecttoCountyand City consent: (i) thetransfereeentersinto an assignmentandassumptionagreementwith the Participant pursuant to which the transferee agrees to undertake the obligations of Participant underthisAgreement; (ii) theParticipantandthetransfereeexecuteandprovideto theCounty documentationreasonablysatisfactorytotheCountyof Participant's assignmentof therightsand delegation of duties under this Agreement to the transferee; ( iii) there is no uncured event of Participant default (as defined in Section 8.1) by the transferringParticipant underthis Agreement; and (iv) City hasconfirmedtotheCountythattheTransferdoesnotcausethe transferringParticipanttobeoutof compliancewiththeCity's parkingrequirementsassetforth in applicableusepermitsorotherCity approvalregardingtheParticipant's obligationtoprovide parkingfor a propertyorusein theCity.

A Participant shall also be entitled to make a Transfer without the consent of the County if the Transfer is to an " Affiliate." However, a Transfer to an Affiliate shall not be made unlesstheCity hasconfirmedin writingtotheCountythattheTransferdoesnotcausethe transferringParticipanttobeoutof compliancewiththeCity'sparkingrequirementsassetforth in applicableusepermitsorotherCity approvalregardingtheParticipant's obligationtoprovide parkingfora propertyor usein theCity. An "Affiliate" meansanyentitywhichis wholly ownedby theParticipantor byaparentof theParticipant, oranyentityin whichParticipantora parentof Participanthasanequityinterestandis a generalormanagingpartner/member, and shallincludeanyneworexistingentitysolongassuchentityis owned, controlledormanaged by (or undercommon control with) theParticipant. No Transfer to an Affiliate by Participant shallresultin Participantbeingreleasedfromanyobligationsof ParticipanttoCountyunderthis Agreement.

7. 3 TransferbytheCity. TheCity maytransferitsrightsandobligationsunderthis Agreementwiththepriorwrittenconsentof County, whichshallnotbeunreasonablywithheld.

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Suchtransfereeshallagreein writingtoperformall obligationsof theCity pursuanttotheterms of this Agreement.

7. 4 Prohibited Encumbrances.
a) NeithertheCity noraParticipantshallhavetherightto placeorcreateany mortgage or deed of trust upon the Garage, the Original Site or the rights under this Agreement, or place or suffer to be placed upon the Garage, Original Site or the rights under this Agreement anylien, levyor attachmentorotherencumbrance. Notwithstandingtheforegoing, in connectionwithobtainingfinancingrelatedtoaParticipant'srealproperty, Participantmay assignitsrightsunderthisAgreementtoa lenderasadditionalsecurityfor thefinancingof such realproperty. However, anysuchfinancingandassignmentfor securitypurposesshallrequire thelenderor purchaserat a foreclosuresaleto be subjectto all termsof this Agreementas of the date of foreclosure ( i. e., all obligations and restrictions related to Participant' s use of the Garage). Such assignment or subsequent foreclosure -sale shall not be a Transfer for purposes of Sections 7. 1-7.3.
b) Any mortgage, lien, levy or attachmentor otherencumbrancesprohibited by thisSectionshallbedeemedtobeaviolationof thisAgreementon thedateof executionor tilingof recordof suchencumbrance, regardlessof whetheror whenforeclosureoccursor the encumbranceis otherwiseenforced, unlesstheCity or Participant shall within sixty (60) days of suchdateof executionor filing of record, removeanysuchmortgage, lien, levyorattachmentor other encumbrances.
c) If Participantprovides to County thenameof any lender to whom ParticipanthasassigneditsrightsunderthisAgreementasadditionalsecurity, Countyshallgive noticeto suchlenderof anydefault (asdefinedin Section8.1) or failureby Participantunderthis Agreementandsuchlendershallhavetherighttocuresuchdefaultor failurewithinninety (90) daysfollowingreceiptof suchnoticeof Participant's default.

7. 5 Transfer by theCounty. The County may transferits rights and obligations under thisAgreementwith thepriorwrittenconsentof theCity, whichshallnotbeunreasonably withheld. A transfereeof County'srightsandobligationsunderthisAgreementshallagreein writing to perform all obligations of the County pursuantto the termsof this Agreement, includingwithoutlimitation, theobligationtomaintaininsuranceon theGarageatsuchlevelsas arereasonableandcustomaryfor suchpropertyandimprovements.

7. 6 Transfer Fee. A transferfee of not lessthan $500 shall be paid to the County for any transferthatrequiresmodifications to billing and agreementsto cover such costsrelatedto the transferof parking spaces. If the actualprocessingcostsare in excessof $500, thefee paid to theCounty shall beequal to thoseactualcosts. No transferfee shall bechargedfor allocations of parkingspacesthatdonotrequirea changein thebilling proceduresbytheCountyor modifications to agreements.

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8. DEFAULTS

8. 1 Default.
a) The followingshallconstitutea "default" bya ParticipantortheCity underthisAgreement: a failurebyaParticipantortheCity toobserveandperformanymaterial provisionof thisAgreementtobeobservedorperformedbyParticipantor theCity wheresuch failurecontinuesforsixty (60) daysafternoticethereoffromCounty; provided, however, thatif thenatureof thedefaultis suchthatthesameis curablebutcannotreasonablybecuredwithin suchsixty (60) dayperiod, ParticipantorCity shallnotbedeemedtobein defaultif Participant or City shallwithinsuchperiodcommencewiththecure, providereasonablewrittenassurance of dueperformanceandthereafterdiligentlyandcontinuallyproceedtocompletion. b) Thefollowingshallconstitutea "default" byCountyunderthis Agreement: a failureby Countytoobserveandperformanymaterialprovisionof this Agreementtobeobservedor performedby County, wheresuchfailurecontinuesfor sixty (60) days afternotice thereoffrom aParticipantor the City; provided, however, thatif the natureof thedefaultis suchthatthesameis curablebutcannotreasonablybecuredwithinsuchsixty (60) dayperiod, Countyshallnotbedeemedtobein defaultif Countyshallwithinsuchperiod commence with the cure, provide reasonable written assurance of due performance and thereafter diligentlyandcontinuallyproceedtocompletion.
c) If a party's default is not curedwithin thetimeset forth in this section, the non -defaultingpartyorpartiesshallhavearighttoseekanyremedyavailableatlaworequity.

8. 2 No Waiver. Thewaiverby eitherpartyof anybreachorviolationof any requirementof this Agreement shall not be deemedto be a waiver of any suchbreachin the future, or of thebreachof anyotherrequirementof thisAgreement.

9. OTHER PROVISIONS

9. 1 Notices. All noticesrequiredor contemplatedby this Agreementshall bein writingandshallbedeliveredtotherespectivepartyassetforthin thissection.

Communicationsshallbedeemedtobeeffectiveuponthefirsttooccurof: (a) actualreceiptby a party's authorizedrepresentative, or (b) actualreceiptat theaddressdesignatedbelow, or (c) threeworkingdaysfollowingdepositintheUnitedStatesMail of registeredorcertifiedmail senttotheaddressdesignatedbelow. Theauthorizedrepresentativeof anypartymaymodify their respectivecontactinformation identifiedin this sectionby providing notice to the other parties. The authorized representativeof eachpartyshall be identified on the "Attn" line below:

City of Napa:

Attn: City Manager
P.O. Box 660
Napa, California 94559- 0660

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Copy: City Attorney
P. O. Box 660
Napa, California 94559- 0660
County of Napa:

Attn: NapaCountyExecutiveOfficer
1195 Third Street, Suite 310
Napa, California 94559
Participants:

Copy: CountyCounsel
1 ] 95 Third Street, Suite 301
Napa, California 94559
Copy: NapaCountyPublicWorksDirector
1195 Third Street, Suite 201
Napa, California 94559
Attn: Andrea Schrader
P. O. Box 388
Napa, California 94559
Napa Mill, LLC
Attn: Harry Price
500 Main Street
Attn:

9.2 Interpretation; Venue.

Napa, California 94559
Channel Properties Inc.

Massimo Desimoni
100W. CuttingBlvd.

Richmond, California 94804
a) Interpretation. The headingsusedherein are for referenceonly. The terms of the Agreement are set out in the text under the headings. This Agreement shall be governedby thelawsof theStateof Californiawithoutregardtothechoiceof law or conflicts. b) Venue. This Agreementis madein Napa County, California. The venue for anylegalactionin statecourtfiledbyeitherpartytothisAgreementfor thepurposeof interpretingor enforcinganyprovisionof thisAgreementshallbein theSuperiorCourtof California, Countyof Napa, a unifiedcourt. Thevenuefor anylegalactionin federalcourtfiled by eitherpartyto this Agreementfor thepurposeof interpretingor enforcing anyprovision of thisAgreementlying withinthejurisdictionof thefederalcourtsshallbetheNorthernDistrictof California. The appropriate venue for arbitration, mediation or similar legal proceedings under

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thisAgreementshallbeNapaCounty, California; however, nothingin thissentenceshall obligateeitherpartytosubmittomediationor arbitrationanydisputearisingunderthis Agreement.

9. 3 Modifications. This Agreementmaynotbemodifiedorallyorin anymanner otherthananagreementin writingsignedbyallparties; provided, however, thattheagreement of the Participants shall not be required for an amendment to this Agreement that does not materiallyaffectParticipantrightsorobligationsunderthisAgreement.

9.4 Mediation. Any unresolveddisputearisingamongthepartiestothisAgreement shallfirstbesubmittedtonon-bindingmediationbeforearecognizedmediatorhaving experiencewith agreementsof this natureand thatis mutually acceptableto theparties, provided thatno partyshall unreasonablywithhold its acceptance. If theparties are unable, aftera period of thirty (30) daysfromcommencementof thedisputeresolutionprocess, toagreeona mediator, anypartyshallbeentitledtopetitionacourtof competentjurisdictionto appointsucha mediator for theparties. Eachpartyshallbearitsowncosts, includingattorney's fees, incurredin connection with the mediation process. If the mediation does not result in a resolution of the disputethatis acceptabletotheparties, anypartymaypursueitslegalremedies.

9. 5 Attorney'sFees. If anypartybringsanactionorproceedingfor damagesarising out of anotherparty's performanceunderthis Agreement, to enforce any right, obligation or provision of this Agreement, to compelor enjoin anotherparty to perform some obligation or promiseunderthis Agreement, or to establishtheright or remedyof anotherparty, the prevailing partyshallbeentitledtorecoverreasonableanomeys' feesandcostsaspartof suchactionor proceeding.

9. 6 Entire Agreement. Except as set forth in Section 2. 3above; this Agreement, includingall documentsincorporatedhereinbyreference, comprisestheentireintegrated understandingbetweenthepartiesconcerningthemattersdescribedherein. ThisAgreement supersedes all prior negotiations, agreements, and understandings regarding this matter, whether written or oral.

9. 7 Each Party's Role in Drafting this Agreement. Each party to this Agreement has had anopportunity to review this Agreement, confer with legal counselregardingthemeaning of this Agreement, andnegotiaterevisions to this Agreement. Accordingly, no partyshall rely uponCivil CodeSection1654in ordertointerpretanyuncertaintyin themeaningof this Agreement.

9.8 Signatures. The individuals executingthis Agreementrepresentandwarrant that theyhavethe right, power, legalcapacity, andauthorityto enterinto andexecutethis Agreement on behalf of the party on whose behalftheyhavesignedthis Agreement.

9.9 Warrantiesof Authority. Riverfront andMill do eachherebycovenantand warrantthateachis a dulyauthorized, existing, in goodstandingandqualifiedtodobusinessin the Stateof California; thateachhas full right, power andauthorityto enterinto this Agreement; thattheexecution, deliveryandperformanceof thisAgreementwasdulyauthorizedbyproper

ATTACHMENT 1

action of eachandno consent, authorizationor approvalof anyperson is necessaryin connection withsuchexecutionanddeliveryortocarryoutall actionscontemplatedbythisAgreement except as have been obtained and are in full force and effect.

9. 10 No Joint Venture. It is agreedthatnothingcontainedin thisAgreementshallbe deemedor construedascreatingapartnershiporjoint venturebetweenoramonganyof the partiesor causeonepartytoberesponsiblein anywayforthedebtsorobligationsof anyother party, exceptasspecifically statedin thisAgreement.

9. 11 Provisions Subject to Applicable Law. All rights, powers and remedies provided in thisAgreementmaybeexercisedonlytotheextentthattheexercisethereofdoesnotviolate anyapplicablelawandis intendedtobelimitedtotheextentnecessarysothatsuchexercisewill not render this Agreement invalid, unenforceable or not entitled to be recorded under applicable law, If anytermof thisAgreementshallbeheldtobeinvalid, illegalorunenforceable, the validityof theothertermsof thisAgreementshallin nowaybeaffectedthereby.

9. 12 Enforced Delay. In addition to specific provisions of this Agreement, performanceby anypartyshallnotbedeemedto bein defaultwheredelaysor defaultsaredueto war; insurrection; strikes; lock -outs; riots; floods; earthquakes; fires; quarantine restrictions,- casualties;
estrictions;
casualties; acts of god; acts of the public enemy; epidemics; government restrictions or priorities; freight embargoes, shortageof labor, materialsor tools; unusually inclementor severeweather; lackof transportation; courtorder; oranyothersimilarcauses (otherthanlackof fundsof a party) beyondthe control or without thefault of theparty claiming an extensionof time to perform. An extensionof timeforanycauseenumeratedinthissectionwill bedeemedgranted if noticebythepartyclaimingsuchextensionis senttotheotherpartieswithinareasonabletime afterapartybecomesawareof thecommencementof thecause, andsuchextensionof timeis not rejectedin writing by at leastoneof the otherpartieswithin thirty (30) days of receiptof the notice.

IN WITNESS WHEREOF; this Agreementwas executedby thepartiesheretoas of the date first above written.

CITY OF NAPA COUNTY OF NAPA
tomf'
By: �( R Q 1 J[ c QA. Q By: .�

JILL TECHEL MARK LUCE
Mayor
ATTEST:

P City Clerk
By:�
Chair of the Board
ATTEST: GLADYS ]. COIL
Clerk of the Board of Supervisors
By. \ \
J�'

ATTACHMENT 1

COUNTERSIGNED: WILLIAM EIT
City Auditor
By:

APPROVED AS TO FORM:

MICHAEL W. BARRETT
City Attorn y
4By:

CHANNEL PROPERTIES INC.
by Channel Lumber Co. a California
corporation, itsManagingMember
MASSIMOIMONI, Chairman
0R7

APPROVED
VISO

BOARD OPE
COUNT! OF NAPA
DYS 1. COIL
ARD
C OF
B
epuly
APPROVED AS TO FORM:

ROBERT WESTMEYER
County Counsel
By: / Z� 1.r
NAPA MILL, LLC by itsmanagingmember,
Napa Mill DevelopmentCompany, a
CaliforniaLimitedPartnership
cc\D\BOS\BONDS & COPSWapa ParkingGarage\Ops Use Agmt\3-06-09-Final.doe

ATTACHMENT 1

EXHIBIT A
MapofOriginalSite
Exhibit A, Page i
ATTACHMENT 1

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I
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2 1536'
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ANUG

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LINES
PLAT
OF

DESCRIPTION
S7US,
ECT
PARCEL
LINES
DELTA
RAOiUS
LENOni
L1
S
7238'
07'
W

24. 5e
NAPA
COUNTY

DEPARIUENT
CCI
PUBLIC
MWKS
I
90'
18'
34'
2600

39. 40
L2
N
5791'
30'
E
263
CIF
A
POR710N
OF
THE
LANDS
OF
COUNTY
OF
a
5� . � � •
NA
4 cwr�
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2 2
1536'
37'

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1530
LJ
N
7738'
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NAPA
AS

DESCRIBED
IN "

EXHIBIT
S'

ATTACHED
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ATTACHMENT 1

EXHIBIT B
Legal Description of Original Site
Tract One
BEING aportion of thatparcel of land leasedto theNapa County Public Improvement Corporation by Property Lease filed September4, 1996andrecordedunder Document Number1996-021298of OfficialRecordsintheOfficeof theRecorderof NapaCounty, California. Beingalsoaportionof thatparcelof landleasedtotheNapaCountyPublic ImprovementCorporationbyPropertyLeasefiledJune23, 1987andrecordedin Book 1523of Official Records atPage 899 in theOffice of the Recorder of Napa County, California.

Also shown on the " Plat of Description" attached heretoandmade a part hereof as EXHIBIT " A'; moreparticularlydescribedasfollows:

BEGINNING at the most southerlycornerof the abovementionedProperty Lease Parcel recorded in Book 1523 of Official Records at Page 899 in the Office of the Recorder of NapaCounty, California; thencealongthesouthwesterlyline of saidLeaseParcelandthe production thereof. N 3258' 30" W 315.60 feet; thenceleaving said southwesterlyline N 57001' 30" E 157.38 feet; thence S 32° 58' 30" E 209. 48 feet; thence N 57°01' 30" E 190.24 feet; thence N 32° 58'30" W 52.08 feet; thence N 77° 58'30" W 14.79 feet; thence N 32°58' 30" W 132.88 feet; thence N 57' 01' 307'E 82.86 feet; thence S 32058'30" E 281.53feettothebeginningof atangentcurveconcavetotheWestand havingaradiusof 20.00feet; thencesoutherlyalongsaidcurve31.42 feetthrougha centralangleof 9000000" toa pointonthesoutheasterlylineof thePropertyLeasefiled June23, 1987andrecordedin Book 1523of Official RecordsatPage899; thencealong said line S 57°01' 30" W 400. 03 feet to the POINT OF BEGINNING.

Tract Two
BEING a portionof therightof wayof Fifth Streetassaidstreetis shownon thatcertain mapentitled "Planof NapaCity"; filedNovember28, 1853, in Book `B" of Deedsat Page433, Napa County Records,
Also shown on the "Plat of Description" attached hereto and made a part hereof as EXHIBIT " A"; moreparticularlydescribedasfollows:

BEGINNING atmostsoutherlycomerof Lot 4 in block 14assaidlot andblockare shownonsaidmaponsaidnorthwesterlyrightof wayline of Fifth Street; THENCE northeasterlyalongsaidnorthwesterlyrightof waylineNorth57°01'30" East400.03feet to a point on the northeasterlyprolongationof said northwesterlyright of way line; THENCE alongsaidnortheasterlyprolongationNorth57°01'30" East26.70feettoa point on a curve; concavewesterly ("easterly" per Res. R2007 141), having a radiusof

25. 00feet, from which the centerbearsSouth 56°42'56" West; THENCE leaving said Exhibit B, Page i
ATTACHMENT 1

northeasterlyprolongationalongsaidcurvethroughacentralangleof90°18'34", anare distanceof 39.40feet; THENCE South57°01'30" West331.25feet; THENCE alonga curvetotherighthavingaradiusof55.00feetthroughacentralangleof15°56' 37", an arcdistanceof 15.30feet; THENCE South72°58'07" West24.56feet, THENCE alonga curvetothelefthavingaradiusof105.00feetthroughacentralangleof08° 37'53'', an arcdistanceof 15.82feettothebeginningofareversecurve; THENCE- alongsaid reversecurvehavingaradiusof25.00feetthroughacentralangleof54'45'41", anarc distanceof 23.89 feetto the southwesterlyprolongationof saidnorthwesterlyright of wayline; THENCEnortheasterlyalongsaidsouthwesterlyprolongationNorth57°01'30 East2.63 feetto thePOINT OF BEGINNING.

Tracts One andTwo abovedescribedcomprising a single parcel of real property containing2.37 acres more or less.

Richard E. Marshall P. L. S. 8544 Date
Expiration: December 31, 2010
County Surveyor
NapaCounty, California
Exhibit B, Page it
ATTACHMENT 1

EXHIBIT C
Floor Plans Showing Allocation of Spacesin Garage
Exhibit C, Page i
ATTACHMENT 1

FIRST
LEVEL

PARKING
PLAN �
D
I- -
Md
110
STALL8(
a
AOA -
106
UIISTA118)
NOTE: - FIRST
LEVEL •

DEDICATED
FOR
SHORT
TERM
PUBLIC

PARKING
AND
CITY
USE
i
R
11M
A
I
C
H
I
T
F
C
T
S
ouAor+ •••, ��
aem

PROJECT
CITY /
COUNTY
OF
NAPA
Tu.

FIFTH
STREET
PARMNG
GARAGE
FIFTH
STREET

BETWEEN
COOMBS
AMD
MAIN
STREET.

WRA.

CA
9I
OWNER
CITY
I
COUNTY
OF
NAPA
70 0
W
80 1'
48-
1 DATE :
7008.

09.22 PROJECT
NO
06657
Or.

O
NO

EXHIBIT
C
OwRiNt2
B
RIM
Mc611edA
Inc
ATTACHMENT 1

SECOND
LEVEL

PARKING
PLAN �\
1' •
Md
to

STALLS (
3 ADA +
121
UWSTALLS �
10 MOTORCYCLE)
u
NOTE: SECOND
LEVEL =
LONG
TERM
PUBLIC

PARKING
V,
lim
A
R
C
H
I
T
E
C
T
S
oAswu ... ....-...

Awe�
m
r�.
sw

PROJECT
CITY!
COUNTY
OF
NAPA
nTLE
FIFTH
STREET

PARIGNG
GARAGE
FIFER
STREET

BETWEEN
COMM
AND
MN
STREET.

NAPA
CA
WSW
o"
ER
CRY
l
COU
OF
WA
7D
o
Ao
SO
1'•
MOd
DATE
1008.

06.2:

PROJECT
NO.

06. M7
PMC
IO

EXHIBIT
C
2Q�D8
RIM /
vC11llEtl6.

Inr
ATTACHMENT 1

THIRD
LEVEL

PARKING
PLAN
Q�
NOTE: THIRD

LEVEL -

PRIVATE

PARTICIPANT

PARKING
R1M_
A
R
CA
H
I
T
E
C
TS
n...
wvem

PROJECT
CITY !
COUNTY
OF
NAPA
71TLL
FIFTH
STREET

PARIQNG
GARAGE
FIFTH
STREET
EIETV/
EEN
COOYSS
AND
NAIN

SRREET,
NAP&
CA
WN
OWER
CT /
C40F
OF
NMA
13S

STALLS (
3 ADA ♦
131
Ml
AILS) `
IL-
30 0 .
a
ro
1-.
4q1
UATT
20,(+

8.22 PROJECT
NO.

06. 657
ING
HO

EXHIBIT
C
corrRRsrt2w
RIM
Mcbtecd,
Inc
ATTACHMENT 1

FOURTH
LEVEL

PARKING
PLAN
a\
Mif
129

STALLS (
2 ADA-
1VL)
NtSTN19)
J
NOTE: FOURTH
LEVEL=
COUNTY

RESERVED
AND
LONG
TERM
PUBLIC

PARKING
R
1 _
M
A
A
C
H
I
T
E
C
i
S
yUpAl•
w .

MWECT
CITY!
COUNTY
OF
NAPA
TRE:

FIFTH
STREET

PARIONG
GARAGE
FD
STREET
BE,
WEEN
COOMBS
AND
MAIN
STREET.

NAPA
CA
W=
0 FR
DRY
I
COIRDY
OF
NAPA
20 0
AO
m
mrF
2008.

08. 2:

PRWECT
W.
0965)
V •
40d
0 ,
FD

EXHIBIT
C
COF
ff
20M
MM
4ch'
fack,
me
ATTACHMENT 1

EXHIBIT D
ChartShowingAllocationof Spacesin Garage
Level Number of spaces Use Allocation Time Restrictions 106 Regular Parking 85 Regular Parking Spaces as City All spaces short-term parking (2- or 3- 1 Spaces Use Parking Spaces hour, or other as determined) 4 ADA Parking Spaces 21 Regular Parking Spaces as Joint Use Parking Spaces
4 ADA spaces as Joint Use Parking
Spaces
2 121 Regular Spaces All spaces Joint Use Parking Spaces All -day parking, first come, first - 2 ADA Parking Spaces served
10 Motorcycle Parking
Spaces
3 121 Regular Parking All spaces Private Participant Use Private Participants will each Spaces Parking Spaces determine if all spaces will be
2 ADA Parking Spaces 46 Regular Parking Spaces restrictedduringWork Hours and Riverfront Non - Work Hours Non - restricted
46 Regular Parking Spaces Napa spaces will be available as Public Use Mill Parking Spaces-
28 Regular Parking Spaces
Schrader
1 Shared Participant Use Parking
Space and 2 ADA Shared Participant
Use Parking Spaces
4 127 Regular Parking 85 Regular Parking Spaces as Joint Use Parking Spaces available Spaces CountyExclusiveParkingSpaces for all -day parking. 2 ADA Parking Space 42 Regular Parking Spaces/ Joint
Use Parking Spaces
2 ADA Joint Use Parking Spaces
Total 485 spaces
10 Motorcycle Parking
7Spaces
See Section 3 ofAgreement for more complete provisions ofierms below) City UseParkingSpaces. SpacesdesignatedasCity UseParkingSpaceswill beusedbytheCity for suchpurposesas theCity determines, whichmayincludepublicparkingor leased, licensedor permittedparking.

Joint UseParkingSpaces. SpacesdesignatedasJoint UseParkingSpaceswill beavailableduringWork Hoursfor usebytheCountyfor Countypurposes, orusebyanymemberof thegeneralpublic, on a first-come, first-served basis. DuringNon -Work Hours, Joint Use ParkingSpaceswill beavailablefor usebythepublic.

ParticipantUseParkingSpaces. SpacesdesignatedasParticipantUseParkingSpaceswill beavailableatall timesfor useby Participants for the Participants' exclusive use.

County Exclusive Parking Spaces. Spacesdesignatedas County Exclusive Parking Spaces (County Use in table above) will beavailableatall timesfor usebytheCountyfor suchpurposesastheCountyshalldetermine, which mayinclude, public, leased, licensedor permitparking. CountypurposesmayincludeCountyvehicleparking, Countyemployeeparking, Countyvisitorparking, or parkingforanyotherpersonsassociatedwith servicesprovided by County.

Exhibit D, Page i
ATTACHMENT 1

EXHIBIT E
County Holidays
JanuaryI (New Year's Day)
ThethirdMondayin January (King's Birthday)
February 12 (Lincoln' s Birthday)
The thirdMondayin February (Washington's Birthday)
The lastMondayin May (MemorialDay)
July 4 (IndependenceDay)
The firstMondayin September (LaborDay)
November I I (Armistice Day)
ThefourthThursdayin November (ThanksgivingDay)
ThedayfollowingThanksgiving
December25 (Christmas Day)
If anyof theaboveholidaysfall ona Sunday, theholidaywill beobservedthefollowing Monday, andif anyfallson aSaturday, it will beobservedtheprecedingFriday.

Exhibit E, Page it
ATTACHMENT 1

EXHIBIT F

GARAGE MAINTENANCE AND OPERATIONS STANDARDS

1. MAINTENANCE.

Pick up trashand emptytrashcans daily.

Cleanelevatorcabs7 timesperweek. Washwallsof cabinsideandoutandwetmopfloors.

Sweepthefloorsof theGarageeverytwoweeksor asneeded.

Conductsafetyandmaintenanceinspectionsof elevatorsmonthly. (Includein themaintenanceagreement with the elevator company.)
Inspectoverheadandgenerallightingsystemsoncepermonthfor properoperationandreplacelightsas needed, including stairwell, exits, and elevator.

Inspect all electrical enclosures once per month for proper hardware and damage.

Quarterlyinspectandmaintainfiresystemsasrequiredby firedepartment. (Contractwithlicensedfire sprinkler contractor for inspection and maintenance.)
Remove graffiti within 2 days of notice of appearance.

Pressurewash all hardscapesurfacesas necessaryto remove gum, dust and dirt (at minimum once per year nearhigh traffic areasincluding stairwells and areasadjacentto elevators).

Inspectsumppumpunitstwiceperyearforproperoperation.

Inspect striping and directional arrows onceper year and repaintas needed.

Check storm drain( s) once per year, in the fall, and remove debris.

As neededperformspecializedcleaningof floorstoremoveoil andgreaseresiduesin compliancewith state and federal environmental regulations. ( Contract with qualified contractor.) Maintain oiVwater separator and photovoltaic system in accordance with the manufacturer' s recommendations.

Maintain the grounds landscapingand landscapeirrigation system.

MaintainparkinggaragedirectionalandregulatorysignagethroughouttheGaragestructure.

Regularly clean and maintain solar panels.
04MIX411" I r a
Weekdays -Monday toFriday
Ticketingshallbeconductedin theGarageoncein themorningandoncein theafternoon.

Drive-thrusecurity (noticketing) shallbeprovidedeverytwo hoursfrom5.00p.m. to 11'00p.m. on all floors.

Weekends/ Holidays
Drive-thrusecurity (no ticketing) shallbeprovidedeverythreehoursfrom 10.00a.m. to 11 :00p.m. on all floors.

Thepartiesagreethatsecurityandticketingenforcementmaybeadjustedfromtimeto timedependingon need.

Additionalsecuritywill becoordinatedwithParticipants' securitymeasures, if any Exhibit F, Page i
ATTACHMENT 1

EXHIBIT G
First Year Budget for Maintenance Expenses
December 1; 2008 - June 30, 2009
Expenditure Category Budget
Insurance
Professional Service Contracts
Security
Sweeping
Solar System Cleaning & Maintenance
PowerWashing
Utilities
Fire Sprinkler System
PG& E & Water
Elevator Inspections (I st yearunderwarranty)
Maintenance Repairs
Elevator Maintenance
SigningandStriping
GraffitiCleanup
Daily Custodial Cleaning
Miscellaneous Repairs
OperatingSupplies
Administrative Costs ( 3% of above)
Contribution to Designation
ApprovedBy:

Dated:
22, 000
Exhibit G, Page i
2, 000
3, 805
30,000
Riverfront
Mill
Schrader
City
County
33, 200
10, 140
6,500
10, 000
4, 000
6,000
8, 000
5, 000
5, 000
10, 000
5, 000
160, 645
15, 663
15,663
9, 542
59, 889
59, 889
160, 645
ATTACHMENT 1

EXHIBIT " H", " H- 1" and " H- 2"
Cooperative Agreement, First Amendment and Second Amendment Exhibit H, H - I and H- 2, Page i
ATTACHMENT 1

Napa County Agreement No 3; 7,7.

Cityof NapaAgreementNo.

PARKING GARAGE COOPERATIVE AGREEMENT

BETWEEN THE COUNTY OF NAPA

AND THE CITY OF NAPA
This Parking Garage CooperabveAgreementiiAgreement') is made and enteredinto as of 2004 by and betweenthe County of Napa, a pohbcalsubdivisionof the State of California ("County') andtheCityof Napa, a municipalcorporation ('Qty' WHEREAS, the partieshave previouslyentered into a Memorandumof Understanding (the originalMOU;* CityAgreementNo. 8428; Napa CountyAgreementNo 6148) on October7, 2003 with respectto the sharingof housingcreditsrequiredby the Slate of Californiafor the approvalof local HousingElementsin exchangefor revenue-sharing, fundingfor specialprojectsrelatedto the impactsof housing, joint planning opportunities, and other responsibilities, and WHEREAS, one of the points of agreement M the original MOU, to wit, Paragraph 7, ' Future ParkingFacility,' requiresCountyto (1) decilcatea parcelof landlocatedat 1195TNrd StreetInthe City of Napa ( APN 003-216-009 and APN 003-272- 012; the ' Original Site) for the development o1 a parking facility unless an otherwse mutuallyacceptablesite upasiderified, (2) participateIn a cost-sharing agreementfor the developmentof thefacility, and (3) adheretoa' goodneighborpolicy' under whichthe County committedto not build additionaloffice space downtownwithoutprovidingadditionalparking sufficienttoaccommodateadditionalparkingneedsnot accommodatedin the newgarage; and WHEREAS, the original MOU provides that where appropriate, the parties will anter into a written agreementconcerningcartainmattersset forthIn Paragraphs4 through7 and other paragraphsIn order to constitute a foundation for their future cooperatlon WHEREAS. thepartiesagreethatpresentlythe greatestneedfor theGarage is duringweekday MondaythroughFriday, 7:00 a.m. to 5:00 p.m.) hours ptlmareyto accomnrodalecurrentCountyuses, ndudog 24-houroperations, andthatduringweeknight (Malay throughFriday; 5:00 p.m. to7:00 a m-), weekendand holidayhoursthereis less need, treeingspacesfa use bythepublicpatronizingII1elibrary, downtown businesses and riverfront festivals; and
WHEREAS, to accommodateCountyneeds and rmncems, the Cityis willingto allowthe Garage to belocatedon an alternativelocation, providedCountysatisfiestheobligationsand requirementsof this Agreementproviding, withoutkmitabon, for County to assumeall costs and responsibililyfor relocating the Sullivan Homeless Sheller and Progress Foundation unit residents from the alternative Garage site, forCountytoassumeallcostsandresponsibilityfordemofiuonofexistingbuildingsonalternativeGarage site, for County to assumeall costs and responsibilityfor constructionof replacementhousingand for Countyalso todesignateat a localoo to beagreedby thepariresbetween50-75 parkingspaces to serve the needs of pmate development that otherwise would have been salisfied at the signal Garage location specified in the MOU; and
WHEREAS, theCityandCountyhavebeenworkingonthefinancinganddevelopmentplansfor the Parking Garage and wish to set fadh In this Agreement the general points of understanding, agreementon cost-sharing, location, timetablefor developmenl, ownership, mainlenance, and other matters related thereto

NOW, THEREFORE, THE PARTIES AGREES AS FOLLOWS
C`nocu l antlSaWgsVharperu«¢I SeiLrystTemporaryInelnel R" 10LXBVkmP,dw➢ GarageCoopAgr 12-02doc Exbjbit H, H - I and H- 2, Page ii
ATTACHMENT 1

I . SiteforGarage. TheCityandCountyagreethatthesitefortheGarageshallbelasted on the Countyownedblock borderedby Coombs, Third, Fouts and RandolphStreets, (APN 003-213- 008, 009, D10) ('Site') shown as ExhibitA allwhed and incorporatedherein. The Countyin a farm acceptabletotheCityshallconfirmthisSitewitha deedrestrictionbyJanuary31, 2005.

2. Cost Estimate and Size of Garage The parties anticipate that the Garage project writ accommodateapproximately, 470-500 spaces and cost approximately $11.3 million. The partiesagree that this estimated cost Includes design, pre -development, pre nsiruckri, bidding, and construction, but does not include the land costs.
3 Cost -Sharing. The parties agree that the contributions for the provision of land and funds for the Garage shall be as follows'
A The County shaP
1) provide land at the Site described in Paragraph 1 of this Agreement, 2) contribute a 58% of the estimated $ 11 3 million cost of the Garage project, 3) pay 100% of any and all casts of demolltlonof any and all buildingson the Site,
4) pay 100% of anyand all costs of constructingreplacementhousingrequired byCafihxnlalaw,
5) pay100% of any andall costs associatedwithin relocalig boththeSullivan Homeless Shelter and the ' program Foundation' units; and 6) reimburseCityof NapaCommunityRedevelopmentAgency (' Agency') for 100% ofanyandallcostsIncurredbyAgencyincomplyingwithanyrequirementsImposedonAgency underCalifornialawas a resultof thisAgreement, Includingwithoutlimitationpreparationandadoptionof any relocationplan. The County shall not be responsible fa reimbursingany costs under this subparagraphthatexceed $6,000.00 unlessthe Cityor Agencyfirstshat haveconsultedwiththe County priorto incuningsuch costs to determinethe mosteconomicallyfeasiblemeans to adequatelycomply with such legal requirements
B. The Cityshall contribute42% of the estimated $11.3 millioncost of the Garage project
C. If the costs of the Garage project exceed the estimated $ 113 m10ton, the partes agreethattheyshalleach paya pro -ratashareof such excessaccordingto theirrespectivepercentage obligations for the estimated $ 113 million cost under this Agreement Expenses not foreseen by the parties will, to the extent possible, be paid as a contingencyunder the constructioncontract No discretionarychangestotheconstructioncontractshallbemadewithoutpriorwrittenagreementbythe parties.

0. Parties will have several opportundles throughout the design phase to adjust the designto keep the projectwithinIle agreedupon budget, and in Ihetregardshall satisfy, amongany other requirements imposed under this Agreement, Paragraph 7 of this Agreement Nevertheless, if the lowest responsible bid for the Garage project exceeds the architect's final estimate of the project's cost as determinedImmediatelypriorto callingfa bids, theCountyshallnot acceptsuchbidwithoutpriorwritten approval by City
Housing Issues
A ReplacementHousing. The Countyagrees to identityan appropriatesite in the Cityof Napaandconstructtworeplacementapartmentswitha minimumof sevenbedroomsaffordableto very low incomeindividualsin perpetuityIn accordancewith CaliforniaRedevelopmentLaw. County furtheragreesto makea good faitheffortto havethe replacementhousingcompletedand availablefor C`Uocwnelasa SaxxisWurpeN.ocslS&Wng$Vrelrpnvy In xel FIIWOLKH�Fs aitlnpGvage CoopAqr 12{1 doc Exhibit H, H- 1 and H- 2, Page iii
ATTACHMENT 1

occupancyby June 30, 2007. If Countycannotmeetthis deadline, Countyagreesto transfertwo of its countableverylowincomeunitswithatleast7 bedroomstotheCityfor purposesof reps to the State under our HousingElementannualprogress reportand completethe consrucem of the replacement housing no laterthan toutyearsafterthe removalof the unitsfromthe affordablehousingstock in the City.

B HomelessShelter. Countyshad be solely responsibleIm the relocationat the SullivanHomelessShelteronthesiteto anothersitemutuallyacceptableto theparties.

County shall work sinulharheousiyand diligently m relocation of the Thorrhelessshemeron a dual tract', mcognangThatitmaybe Impracticableto relocatethehomelesssheltertois pemhenentnew locationwmhnthe tree constraintsagreedto by the partes. Aanrdrgly, Countyshat m the one hand diligentlytakeamstepsnecessarytorelocatethehomelesssheltertoa permanentlocationor, a siteownedin South Napa by the Gasser Foudaton. County on the other hand shall simultaneously and dr6genlly, oke all stepsnecessarytoreocateThehomelessSwII r o aninterimbce6onm CaliforniaBoulevardpursuanttothe following schedule'
1) Countyshall presentInterimsite plans for renovationof the temporary shelter no later than September 1, 2005.
2) Countyand City shamreview constructionprogressof the permanent homeless shelteron the Gasser site and makea decision as to the need for to interni shelter by December 1. 2005
3) Unless the consWclion progress of the permanent shelter substantially demonstrates that it will be open for use no later than June 1, 2006, the Interim shelter arrangements will proceed, and County shall commencerenovationof InterimCatlomla Boulevardsite no later than January 1, 2006.
4) CountyshadvacatetheSullivanShelterno laterthenJune 1, 2006.

C. Progress Foundation Units. County shall relocate the so-called ' Progress Foundation' unitsbyMarch1, 2006.
5 Mellhodof Ffnancing. The partes antclpale thattheCityWillbe payingits sharethrough cash from Redevelopmentreservesor bond funds, and the County will pay its sharethrough County reservessetaside for theprojectand otherfinancing Irrespectiveof the scarceor availabilityof funding, both parties shall contribute the dollar amounts specified In this Agreement The County AudltorlCmiroter shall establisha CwntylCfty Parking GarageAccount to accountfor the receiptand distribution of the funds for the Garage project
6 Timing of Fundmi Allocations for Pre - Development Work. The parties agree that the predevelopmenl costs will be approximately 31.50 milan, and that each party shall place 5500, 000. 00 in an accountfor the Garage with the County AudilaLontrotler no later than January 31, 2005, and authorize the commencementof the predevelopmentdesign and site studies. Remainingfunds for predevelopmentshambe placedit the accountin equalamountsby bothpartieswhenthe Orsi $1 million has been spent down to within 10% of the remaining funds, w at such time as a new or amended contract for pre - development expenditures requires the additional commitment of funds

7. Tenehneand ResoonSbAty or Development The partes agree that the timingof the design, biddingand crosfructronshhaffbe as shownas Exhibit R tothisAgreement CountyShanbe fead agency responsibleforbidding, constructioncontracts, designandbidding. CountyshamconsultwithCity on designand cost, and Cityshatlapprovethe finaldesignand cost estimatepnw to the Countycalling for olds and awardingcontractsfor crostmcticn Countyshall conductm fewer than one meetingat which the public shall be entitled to review and comment in advance In on proposed designs.

8. Timing of Construction Funding. The partes agree that all funds required for omstrucbm of the -Garage projectunderthis Agreementshadbe approvedand allocatedby the respectiveelected bodies byJanuary 31, 2006, to allowfoubiddingin early2006and contractawardin Aprilof 2006 The padies anticipatethattheCountywillsecuresome turn of financingto financeallor partof theirportico C lDptimenlr andSNYrgslearyer'laW aNlxgelTemporrryINelnelRlmsOLI(OflraPaAing Gaspe CoopAP 12-02 dac Exhibit H, H- 1 and H- 2, Page iv
ATTACHMENT 1

of the debt and therefore, Countyagrees to have the process completedand the funds secured and appropriatedto the constructionaccountreferredto In Paragraph5 of this Agreementby January 31, 2006 to allow biddingto commencein early 2006. City also agrees to transfer Its potion of the crostruchonfundingto theaccountreferredtoin Paragraph5 by January 31, 2006. If eitherparrytausor refuses for any reason to timelyallocate the protectconstnxcuw funding by January 31, 2008 in accordancewith Paragraph7 of thisAgreement, itshall be responsiblefor reimbursingby March, 2006, theotter partyfor al of theotherparty's costsof pre -development. Any interestearningsthataccruewill be usedfirstfor projectconstruction, andd anyfunds contributedor interestearnedremainin theGarage Account at project completion, said hinds will be reallocaled to the contributing parties In the same proporllonascontributedbythepates tothisAgreement.
9 Ownership. The partiesagree that the Garage will be owned by the County who will operateit Inaccordancewithan Operationsand Use Agreemententeredintomlh theCity

10. Operations and Use Agreement
A The partiesagree that they shall work cooperativelyto enter Into a Parking GarageOperationsand Use Agreemenlwhichshall specify, withoutImllalion, the numberof spaces to be used by Count' vehiclesand employees, the numberof spaces to bedesignatedfor publicuse, and the numberof spaces tobe used bya privalepartyor developerwhomay agreeto reserveand pay for certain spaces The pates shall adopt the Operations and Use Agreement at such time as the final designdocumentswe approvedbut priorto biddingthe project The Agreementshall be recordedand shag be effective for the life of the Garage- The Operations and Use Agreement shat further designate the County as the agency responsiblefor the daily management, operation, and maintenanceof the faahtyand theoptionsfor doingso, includingwithoutlimitationcontractingwiththe Cityor a privatefirm.

The City and Countyshall annuallyapprovea budgetfor the maintenanceof the facilityand conlnbule equalamountsfor thecosts minusanycontributionrequiredofa privateparty, fees, charges, or income from the Garage.
8 Irrespective of whether the parties enter into an Operations and Use Agreement, the pates agree that during lfw weekday ( Monday through Friday) hours of 7:00 a m. to 5 00p.m., 75% of spacesshallbe availableforCountyuse (IndudingCountyemployeeparking, Countyvistors, and all Otherpersonsassociatedwhh County), and all remainingspaces, whichshall be no fewerthan25% of the spaces shag be reservedand openfor publicuse as determinedby the City. The partiesfurther agreethatduringweekdayeveninghours (MondaythroughFriday, 5.00 p.m. to7:00 a.m.) and weekend Saturdayand Sunday) and holidayhours, 75% of the spaces shall be designatedsolely for public or privateuse, as determinedbytheCity, witha minimumof 25% of thespacesreservedfor Countyuse.

A Mile the parties anticipatethat they shall be the only two parties to the Operations and Use Agreement executed pursuant to Paragraph 9, the parties also anticipate that from timeto timethepartiesmaynot themselvesrequirethe use of all spaces in the Garage, and thatsome number of surplus spaces may therefore exist Accordingly, the parties agree that said agreement may allow for a pirvale party to lease, license or otherwise use designated surplus spaces in the Garage from the Countywith approvalof the City, providedthe privateparty's use of said surplusspaces shag not reduceor diminishthe use or availabilityof the Garage for Countyemployeeparkingand publicparking underthis Agreement. Any fundsrecilvecifromor as a resultof such lease, licenseor use by a pmate partyshallbealbcaled and usedsolelyforcostsof operationandmaintenanceof theGarage.

6. County Provisionof Spaces on AlternativeSites. In additionto spaces in the Garage, County shall designate 50- 75 additional par" spaces for use by private development anticipatednew the originalsitespecifiedin the MOU. The locationshallbe as mutuallyagreedby the parties and addressed in the Operations and Use Agreement or II the parties are unable to so agree, said additionalspaces shag be locatedIn the Garage with a commensuratereductionin County spaces.

Countymaysatisfythisadditionalspacerequirementby desgnabngthespacesonthe OriginalSite.

12. Parking Enforcement The Countyshag provideparkingenforcementIn the Garage to ensure proper usage of all designated spaces and to patrol for illegal parking. Revenue Gan citations C. t urnmlc and rniN el F11n%0LItaIF1� 9AYgG" e Cmp Ayr 12-02dac Exhibit H, H- 1 and H- 2, Page v
ATTACHMENT 1

shall be used to offset the costs of enforcement Costs not offset shall be funded by the joint mainlermnce account

13. Lead Agency for Designand Development The partiesagreethatthe County shall be the lead agency for design, development plan processing, environmental review, preparation of bid documentsand constructionmanagement- The County Public Works Directorwill be the responsible partyforprojectmanagement, and shalladhereto the timetablein ExhibitB He/she shall workwitha technicalteamfromtheCityandtheCountywhox711haveInputintothe designand developmentfeatures of the Garage
14 Processingand Oesign Review. The partiesagree that the County will process the garagethroughitsplanningand permittingdepartmentsat nocasttotheCity The CountyandClryagree to pinny sponsor one public meeting as well as make individual contacts with nearby property owners to solicitinputfromInterestedpartiesinthe designof thefacility The CityCounciland Board ofSupervisors shalljointlyapprovethefinaldesign

15. Chemm Orders The estimated project cost includes a 10'% contingency for change orders and other unforeseen costs Charge orders that relate to unforeseen circumstances or other problemsand thatare necessary for publicsafety or to complete the garage as Intendedshag be negotiated and aulhon zed by the County In a timely manner to minlmae unsafe conditions and construction delays. These costs shall be paid for from the contingency budget From tone to time, opportunitiesmayariseduringconstructionto improveuponthedesignby theapprovalof a discretionary changeorder. All discretionarychangeordersexceeding ;30,000 shallbe firstreviewedand approved bythe Citybeforebeingaudwrizedby theCounty.
18 TemporaryParkingfor CountyEmolovees. Itshall be theresponsibgityof the County to arrange for or direct Its employees to park In alternate Ircallons while the project Is under construction.

The Citywill assist in Identifyingalternativesites for said purpose, but shall not be responsible of obligated fix any costs of provJdohg such parking.

17. Hold Harmless and Indemnity The hold harmless and Indemnity, provisions contained in Paragraph15of ( heoriginalMOU shagappfy to this Agreement. This paragraphshelf not, however, appy to theoperationand maintenanceof the Garage after itsconstiuctlonhas been completed, the partiesagreethattheyw@negotiatecooperativelyand attempttoagreeon equitableindemnityprovisions to be incorporated in the Operations and Use Agreement referenced In Section 10 of Ihls Agreement The partles anticipate such Indemnification responsibilities and risk allocation of the parties will, with other factorsto beconsideredby the partiesduringfuturenegotiations, bebased proportionallyon thenumber of parking spaces allocated to each party
18 Fees and Charges. The parties anticipate that County may oppose fees andlor charges for the use of Garage. The partiesshagwork togethercooperatively, and City approvalshag be required, beforeany such fees and chargesare Imposed. The proceedsof any and all such tees and chargesshagbe allocatedand used solelyfor the costs of operationand maintenanceof the Garage.

Any and all revenuereceivedby the City fromcity's issuance of permitsto park In the Garage shag be used to offset the costs of operating and maintaining the Garage.

19. Warranty of Legal Authonty. Each parry warrants and covenants that II has Via present legal authorityto enterinto this MOU and to performthe acts requiredof it hereunder If any partyIs foundtolackthea thornytoperformtheactsrequiredof ithereunderor is preventedfromperformingthe actsbya courtof competenljurisdiction, thisAgreementshagbe void

20. AslomeVs' Fees Applicable Law and Forum. In the event either parry brings an action or proceedingfor damagesarisingout of the olhefs performanceunder this Agreement to enforce any right obligation or provision of this Agreement, to compel or enjoin the other party to perform some obligationof promiseunder this Agreemenl, or to establishthe right or remedyof either party, the pfevadingpartyshagbe entitledtorecoverreasonableattorneys' feesand costs as part of such action or proceeding, whetheror not such actionor proceedingIs prosecutedtojudgment. This Agreementsham be construed and inlerpreled according to California law, and any action to enforce the terms of this Agreementorforthebreachthereofshallbe broughtand trredin theCountyof Napa.

C. hDocv , and Selun,%TampoirryMldnel FevalOLxaTlnaF Wig Garan CoopApr 12-()Z& c Exhibit H, H- 1 and H- 2, Page vi
ATTACHMENT 1

21. Time of the Essence Time shall be and ¢ of the Essence with respect to all matters, promises, agreements and obllgallons contained In this AgreemenL

22. Original MOU m Remain in Effect In all respects not expressly amended by this Agreemen( the originalMOU and all of Itstermsshallremainin full force and effect, and shall apply to this Agreement
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed an the day and year first above written.

ATTEST: PAMELA MILLER
Napa Clerk of the Board of Suparoisors
APPROVED AS TO FORM:

ROBERT WESTMEYER,
NapaCountyCounsel
By E -Signature Robert Westmeyer
ATTEST: PAMYLA MEANS
Napa CityClerk
APPROVED AS TO FORM:

THOMAS B. BROWN, Cly`Altome
By:
f /
T
COUNTERSIGNED:

JED CHRISTENSEN. Finance DBeclor
7 COUNTY OF NAPA
By:
l /> MARKLLI—
Chair of the Board
APPROVED BV THE NAPA CaH( PI'
DOARDOFSU! RFLSDRS
LUQ
Ixpely croC or u

CITY (, IF NAPA
By:

END RSON, Maya
C. D cmenla antl SNlingeYherpadtocal S w,, gewwiiry MjI el Files% KB%FNamarki g Gauge Caap AQ 12-02 doc Exhibit H, H - I and H- 2, Page vii
ATTACHMENT 1

EXHIBIT " A"
Parking Garage Parcel
The landreferredtoherein Is situatedintheCityof Napa, Countyof Napa, Stateof California, and is described es follows
Lots 1, 2, 3 and4 of Block24, as shownon themapentitled 'Plan of Napa Cily', filedNovember28, 1853 and recordedIn Book 'B' of DeedsatPages 433, in the Officeofthe CountyRecorderof NapaCounty and also shown on the ' Plat of Description' attached hereto and made a part hereof as EXHIBIT - At-.

EXCEPTING THEREFROM theinterestInthatportionthereofgrantedtothe Cityof Napaby Easement Dead filed April S. 1971 and recorded in Book 847 of Official Records at Page 440, further described as follows
A porton of Lots 1, 3 and4 of Block24, asshownon themap entited'Plan of NapaClty', recorded November 28, 1853 in Book B of Deeds at Page 433 in the office of the County Recorder of Napa County, described as follows'
COMMENCING at the most southern cornier of said block 24, thence northwesterly along the soutthwestolyboundaryof said blockto themostwesterncornerthereof, themenortheasterlyalongthe northwestern boundary of said block to the most northern comer thereof; theme southeasterly along the northeasterlyboundaryof saidblocktoa tangentpointof cuspon a 20 lootradiuscurveconcavetothe south, theradiuspointof said curvebears44 feetsoulheastadymeasuredat rightanglestosag northwesternboundaryand 20feelsouthwesterlymeasuredat fightanglestosaid northeastern boundary; thence mrtlrvreslay , westerly and southwesterly along said curve to a tangent point on a Ilne parallelwithand measured24feetsoutheasterlyat rightanglestosaid nonhwestemboundary; thence southwesterlyalongsaid parallel8neto a tangentpointona 100footradiuscurveconcaveto theeast, the radlus point of said crave bears 124 feel southeasterly measured at right angles o said northwestern boundaryand 112feel northeasterlymeasuredat rightanglestosaid southwesterlyboundary; thence southwesterly, southerlyandsouttheasterlyalongsaid curveto a tangentpointen a himparallelwithand measured12feetnortheasterlyat rightanglesto sad southwesternboundary; theme southeasterly alongsaid paratelfineto thesoutheasternboundaryof said block; thencesouthwesterlyalongsaid southeastern boundary 12 feet to the point of commencement Napa CountyAssessors Parcel Number003213-008, 009E 010
Contalning 1.32 gross acres, more or less
108 net acres, more or less
C IDecamenle aM SerinasVhereerYocal eagege%Ter p riry Inkinh FlMIGLKIMInrPehkq Garage Coop AT IM2 Etc Exhibit H, H- 1 and H- 2, Page viii
ATTACHMENT 1

EXHIBIT B
CountyGarageEstimatedConstructionSchedule
Walry Estimate
CountyIn-housePlanningReviewProcess 10104 - 12! 04
Garage Prelim Design and Site Analysis 1105- 2105 36 days Public Input Meetings 2/ 75- 3105
Schematic Design Plans 3105 - 4105 65 days
Design Development 5105- 6/ 05 55 days
Cons W Glon Documents 7/ 05 - 10/ 05 105 days
Complete Plan Check 11/ 05 - 12/ 05 56 days
ConstructionFinancingInPlace 1/ 16
Prepare Bid Package 8 Bid 1106- 2106 48 days
Contract Award 4/ 06
Notice to Proceed 5106
Stan Construction 7/ 06 360 days
Ci0� 5andSeltlnvs�aiceilLocelSen %Temman10t&elF1k0,_KIMmlPmkimGameCocoAar12q Aoc Exhibit H, H- 1 and H- 2, Page ix
ATTACHMENT 1

First Amendment to
Nape CountyAgreementNo 6372
CityofNapeAgreementNo. 8688
This FirstAmendmentis madeand enteredintoas of January24, 2006 byandbetweenthe Cantyd Napa, apoliticalsubdivisionofthestaleofCalifornia ('County') andtheCdyofNapa, a municipalcorporation ('City').

Whereas, on December 7, 2004, the parties entered Into w agreement ( County Agreement No.63727(C1tyAgreementNo.6688), hereafter 'ParkingGarageCooperativeAgreement; relating to theconstructionof a parkinggaragefacility, and
Whereas, Paragraph8 of theParkingGarageCooperativeAgreementprovidesthatallfunds required for the coatnrctlon of the ' Project" as defined in the Parking Garage Cooperative Agreement, shall be approvedand allocatedby the respectiveelectedbodies by January 31, 2006; end
Whereas, the panes would like to extend the January 31. 2006 deadline established in Paragraph8 of the Parking Garage CooperativeAgreementbecausefundingof the Project by January31, 2006willbeprematureandwOlcausetheCitytoincurunnecessarypenalties.

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:

Paragraph8 oftheParkingGarageCooperativeAgreementIsherebyamendedtoreadinfullas follows.

8. Tming of Construction Fundirw. The parties agree that all funds required for construction of the Garage project under this Agreement shell be approved and allocated by the respectiveelectedbodiesby March 31, 2006, to allow, for biddingIn the Spring of 2006 and contractawardby theSummerof 2006 If theCountydecidestosecuresome formof financing to finance all or part of their portion of the debt and therefore. County agrees to have bierprocess completed and the funds secured and appropriated to the construction account referred to In Paragraph5of thisAgreementbyMardi 31, 2006to allowbiddingtocommenceby theSpringof 2006. CllyalsoagreestotransferItsportionof theconstructionfundingtotheaccountreferredto in Paragraph5 by March31, 2006. If eitherparryfats a refusesforany reasontotimelyalloxate the projectconstructionfundingby March 31, 2006 In accordancewith Paragraph 7 of this Agreement, itshall be responsiblefor reimbursingby June 1, 2016, theotherpartyfor allof the otherparty's costs of pre -development Any Interestearningsthataccruewin be used firstfor protectconstruction, andif any fundscontributedor interestearnedremainInthe GarageAccount of project completlon, said funds will be reallocated to the contributing parties in the same proportionascontributedbythepartiestothisAgreement
All otherterns of theParkingGarageCooperativeAgreementremainInfullfarceandeffect HA, cdors\ hos5ondr& rope.
nnpo pvkizIfir if=,; Opybng gmagr-
vV. rtlerlrndingdredti¢ dao
Exhibit H, H- 1 and H- 2, Page x
ATTACHMENT 1

IN WITNESS WHEREOF. thisFirstAmendmentwas executedbytheparties as of thedalefirst above written.

ATTEST: PAMELAMILLER
NapaClerk'q theBoard91Supervisors
By
APPROVED AS TO FORM:

ROBERT WESTMEYER,
NapaCountyCounsel
iRrY11Rf11'�+ IEi��?riyr: T: F-�
ATTEST:

Napa City Clerk
APPROVED AS TO FORM:

MICHAEL , W. BA RE if Attorney
COUNTERSIGNED:

JED CHHRR T� NSEN, Fi ce�Df6eclor
H.kcWac Us% 1onds& copsl
n* a pmkiq ig ng puking g.. g,
agr¢ m ttut� d, q dtadiint& a

COUNTY OF NAPA
By.
91CL DODD,
Chair of the Board

CITY OF NAPA - T
By: 1 L 9- 0. TR y
JILL TECHEL, Mayor

APPROVED
BOARD OF�SIfPE SORS

COUNTY OF NAPA

PAMELA A MILLER
C ERKOF 1HEBOARD
BY --/ Deputy
Exhibit H, H- 1 and H- 2, Page xi
ATTACHMENT 1

NapaCountyAgreementNo. 6372
CityofNapaAgreementNo 8888

PARKING GARAGE COOPERATIVE AGREEMENT

SECOND AMENDMENT
ThisSecondAmendmentis madeandenteredIntoas of February28, 2007by and befvvcn the CountyofNape, a politicalsubdtbsfonoftheStateof California ('County') andtheCityof Nape, a municipal cerporallon (' CIV)
RECITALS:

A- On October 7, 2003, the partles entered Into a Memorandum of lkderstandi g ( TION') Identifiedas Nape CountyAgreementNo. 6148, and Cityof NapaAgreementNo. 8428, The MOU jElghih Rede and Paragraph 7) anticipated, among other provisions, that the panics would enter into separale agreements regarding the sharing of responsib4litles related to developmentof a futureparkingfacility ('Garage). The MOU anticipatedthatthe Garage wouldbe locatedon a portionof theCountyownedpropertyat 1195Third Streetin theCity of Napa ( APN 003- 272- 013 and APN 003- 272- 014) ( hereinafter ihe' Onginal Site'), unless an alternativemutuallyacceptablesitewas Identified.

B. On December 7, 2004, the parties entered Into a Parking Garage Cooperative Agreement Agreement") Identified as Napa County Agreement No. 6372, and City of Napa Agreement No. 6688. Among olher provisions regarding the sharing of responsibilities related to development of the Garage, the Agreement Identified an alternative mutually acceptable she for the development of the Garage, to be located on the County owned block bordered by Coombs, Third, Fourth, and Randolph Streets ( APN 003-213-008, 009, and 010). That site was fomlertyused by the SulBvenShaffer. and Is relarredto hereinas the 'Sullivan Site' Aher careful consderallon of the Sullivan Site as an allam ilve she for the Garage, the parties mutually agreed on the Original Site as the location for Ste Garage.

C. On January 24, 2006, the paries enteredintoa FirstAmendmentto theAgreementrFirsf Amendment'), by which the parties modified specified timing requirements of Agreement Paragraph 8 to provide, generally, for the deposit of required construction funds into a specifiedoergtructimaccountby March31, 2006, biddingfor constructionIn the Spring of 2006, and contrad awardfor theparting faclBtyby theSummerof 2006. The Agreement, as emendedbytheFirstAmendment, is referredto hereinas the 'CooperativeAgreement.' D. On May23, 2006, at a joint meetingof theCityCound (' Council') and the CountyBoardA Supervisors ('Board'), the Counciland the Board dratted the respectiveCity and County staff members to pursue design and construction of the Garage at the Onglnal Site, as a design -buildproject, potentiallyusingfundingfromprivateownersof adjacentproperties, and to modify the terms of the Agreement accordingly.

E. On January9, 2007, theBoardapprovedthree (3) PrivatePervertmawAgreements, onewith each of three nelghbwIng property owners, whkJi would provide each of them with desgnoted parking spaces that they can make available to tenants, employees, and visitors to Meir properties in return for proportionale financial contributions to both capital and operatingcostsof theparkingfacyUy.

F. On January 9, 2007, the BoardauthorizedtheCounty's Directorof PublicWorks to request design-bulld proposals here pre -qualified top Me ranked design -bund entilies for the design and wrutructlan of the Garage In accordance with Public Contract Code Seclion 20133. page 1 . 118
Exhibit H, H- 1 and H- 2, Page xii
ATTACHMENT 1

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS

1. Amendmentto Aareemenl In all respects not expressly amended by this Second Amendment, the Agreement and an of IIs terms shall remain In full force and effect.

2. Impleuenlation of the MOV For the purpose of interpreting MOU Subparagraph 26(a), each party's compliancewOhtherespectiveobligationsunderthisSecondAmendmentshallbe consideredsufficientprogresson the obligationsrelatedto providinga futureparkingfacility punder MOU Subparagraphs 7( a), 7( b), and 7( d)) This Second Amendment shall serve as the 'equltabtecost-sharing agreemenl' requiredby MOU Subparagraph7(b), and the requirements of this Second Amendment shall supersede and replace the requirements of Subparagraph7(b). The ongoingmaintenancerequirementsof MOU Subparagrapb7(d), as well as the deed restriction requlramenis of MOU Subparagraph 7( a) shall be clarified and implementedby the parties througha separateOperationsand the Agreement to be recorded against the Original Site.

3. AgreementParagraph1 Is emendedby deletingtheprevioustextin f A and replacingitwith thefollowing:

1. She for Geraoe. The Cityand Countyagreethattheas for theGarage shag be located at the Original Slle, a grephic depiction and legal descripllon of which is attached hereto as Exh6fl A and Incorporated herein by reference. The County shall, in a form acceptable to the City, documanl the terms of the operation and use of the Garage on the Original Site pursuant to an Operations and Use Agreement described n Agreement Paragraph 10, to be recorded as a deed restriction against the Original Site property prior to commencing operation of the Garage.

4. AgreementParagraph2 Is amendedby deletingtheprevioustextInfun, and replacinggwith the follow(rrig

2. . Cost Estimate end Size of Garaoe. The parbas anikipate that the Garage project will accommodate approximately470 parking spaces and cost approximately $15,200,000. The partiesagreethat 'Garage Costs' (on which the cost estimate Is based, and for which ' cost- sharing' between the parties shall be dented in this Agreement) shall include design, pre -development, pre-corxslrucgon, design -build bidding and construction, but specifically exclude costs of land or costs associated with the design or denhollllon efforts of the Sullivan Site.

5. AgreementParagraph3 is amendedby deletingtheprevioustextinfun, and replacingitwith the following:
3 Cost-Sharino. Each partyshall contributeland for the Garage project, and shag contribute funds toward Garage Casts as fopows A- Land contributions:
1) The Counly shall provide the land for the Garage at the Onginal Site pursuant to Agreement Paragraph 1.
2) TheCityshallprovidethatportiona7thelandfortheGarage
identified on Exhibit ' B' ( Fifth Street Righl- of-way) allached hereto and Incorporated hereinby reference The Cityshall abandon, vacate, quitclaimor otherwiseconveythe PaOlrg[, crape 12 p Iva Agree [ - Se PmenOmeN
Pape 2 d to
ccZWp OWSCOPSlNf PaMngCa e�Pad& <'. antyOtyCo Am 2( 2W7Cbanl4ac Exhibit H, H - I and H- 2, Page xiii
ATTACHMENT 1

City's interestIn the right-of-way, for the benefitof the County (as adjacentproperty owner) as more paNadartydescribedIn Exhibit 'B.' attachedheretoand Incorporated hereinby reference, subject to sufficientfundingfor the Garage project (pursuantto Agreement Subparagraph 3(d)).

B. The County shall:
1) ca inbule $ 6, 550, 000 of the estimated $ 15, 200, 000 cost of the Garage pro) ecC
2) obtain co bributbns from private participant owners of propertyadjacentto the OriginalSilo, N an amountup to approximately $3,90D,0o0 N return for the private participants' fight to use a portion of the Garage proportionate to the contribution,
3) pay 100% of any and all costs of demolitionof any and all buildings on the Sullivan Site,
4) pay 100% of any and all costs of coretruclingreplacement housing from the Sullivan Site, as required by Caldmnla taw; 5) pay 100% of any and all costs associated with relocating both the Sullivan Homeless Sheller and the ' progress Foundehon' units from the Sullivan Site; and
6) reimburse City of Napa Community Redevelopment Agency Agency') for 100% of any and all costs Incurredby Agency it complyingwith any requirementsimposedon Agencyunder Caldomialaw as a resultof OdsAgreement, including without hmita0on preparation end adoption of any relocation plan The County shall not be responsible for re6nbursing any costs undo this subparagraph that exceed 15,000OOunlesstheCityar Agencyfirstshallhaveconsultedwhh the Countyprior to Incurringsuch costs to determinethe mosteconomicallyfeasiblemeansto adequately comply with such legal requirements.

C The City shall conal ate 54, 746,000 of Iha estimated 15,200,000 cost of the Garage project. As set forth In Agreemenl Paragraph 6, the City paidIts $4,746,000lundig obligationto theCountyon oraboutMarch31, 201 O. Monitoring estimated Garage Costs:
1) The CountyshellkeeptheCityregularlyInformedregarding the status of design of the Garage. The City may submit to the County suggested modficalions to the design, end the County shall reasonablyconsider any such suggesibru submitted by the City.
2) Ali& design -buildbidsore receivedby theCounty, and prior to the County's awardof a designbugdconstructioncontract, the Countyshall provide the City written notice as to whether the County has sufficient hinds available to provide to the City the paliNg spaces specified In Agreement Paragraph 10. In determining sufficiencyof fundsavalablefortheGarageproject, 0neCarly shallIncludeanyInterest earnedon the contributionspaid towardthe Garageproject (Includingcontrbuiions by private participants). tt the County's notice indicates sufflGent funds are available, this Agreememshallremaininfullforceandeffect. if theCounty's noticeIndicatesthereare Insufficientfundsavailabletoprovidesufficienlperkingspacesto theCity a) CountyandCityshadmeetandconferIna good faith
effort to negotiatea modificationto this Agreementby which either Onerespective contributionsof theConly and the Cityare proportionatelyincreased, o Olenumberof parking spaces available to the Counly and City are decreased. b) II County and City are not able to agree an a
modificationto the Agreementwithinthirty (30) days of the County's notice, City may terminateitsobligationsunderthisAgreementby providingthirty (30) days wriOennotice to theCounty, and CountyshallreturntheClty's $4,746,000(includingall Interestearned thereon) to City withinthirty (30) days of City's notice termination, and County shall propose an agemadve means to satisfy the requirements of MOU Paragraph 7.

Pw* g Garage Cmpnalm A{ rwni- Secmie Arun eM
Papa 3 Or 18
at USY30HGSC WapPar gGarageWmkWPCaMCA' Coup- 212W? Cinn). doc Exhibit H, H- 1 and H- 2, Page xiv
ATTACHMENT 1

E Expensesnotforeseenby thepartieswill, totheextentpossible, bepaidasa contingencyundertheconatructloncontract. Nodiscretionarychargeeto the coretrucibn contract shall be made without prior written agreement by the parties.' 6 Agree;owl Paragraph7 Is amendedbydeletingtheprevioustextInfull, endreplacingitwith the fdlowing:

7. Timeline and Resoonslbllltv for Development. The parties agree that the timingof the designandconstructionshagbe as shownan Exhibit "C' attachedhereto and Incorporatedherein by reference. County shall be lead agencyresponsiblefor design and consliuction of the Garage'

7. AgreementParagraph8 is amendedby deletingtheprevioustextin full, and replacingItwith the following:
8 Timing of Construction FunCinp. The patters hereby acknowledge that theClly paidIts 14,746,000fundingobligationtotheCountyonor aboulMarch31, 2006, and the County depositedIts $6,550,000 fundingobllgatlmto the appropriateGarage Accounton or aboutMarch31, 2006. Any Interestearningsthataccruewillbe used first forGarageprojectwnstructim, and Itanyfundscontributedor InterestearnedremainIn the Garage Account at project completion, said funds will be reallocated to the cmblbuling parties H the same proportionas contributedby the parties to this - Agreement.

0. AgreementParagraph 10is amendedby deletingthe previoustextIn full, end replacingIf with the following:

10. Ooerahms and Use Agreement.

A. The parties agree that they shall work cooperatively to enter Into a Parking Garage Operationsand Use AgreementCO&U Agreemanir) which shall specify, withoutIlmiation, the numberof spacesto be used by County vehicles end employees, the number of spaces to be designated for City Use, the number of spaces open to the general pudic, and the number of spaces to be used by a private parry or developerwho mayagreetoreserveand pay forcertainspaces. The Countyshagnot dedicateparkingspacesInthe Garagefar use bya privatepartywithoutthe priorwritten consent of the City. The parties shag adopt the O& U Agreement prior to commencing operation of the Garage. The OSU Agreemerd shag be recorded against the Original Site and shell be effective for the life of the Garage. The O& U Agreement shag further designate the County as the agency responsible for the dally management, operation, securtty, and maintenanceof the facilityand theoptionsfor dung so. includingwithout limitation contracting with the City or a private firm. The City and County shall annually approve a budget for the malntenence of ties Garage and contribute equal amounts for the costs minus any contribution required of a private party, lees, charges, or income from the Garage. It Is anticipated that private participants will be responsible for approximately twenty-six percent ( 26%) " actively o1 such costs, with the remaining costsbeingsharedequallybetweenCityand County, approximatelythirty-sevenpercent 37%) each.

0. Unlessspecificallymodifiedby Oletermsof an O&U Agreement, the partiesagree thatthe Garageshall include85 parkingspaces for' City Use; 85 parkingspacesshallbe' CountyExclusiveParkingSpaces; 170park" spacesshagbe Joint the Parking Spaces,' and a certain number will be for the use of Private Participants as those terms are defined below,
Parkins G , ria Cooperative Ai nl - Semrtl M i, nt
Pape 1 W A
MWSBONb5CDPSW paPa rgGamgnPB, kk, Ca KAyC. pMwnM12ly 7CEan1 do:

Exhibit H, H - I and H- 2, Page xv
ATTACHMENT 1

1) ' County, Exclusive Parking Spaces.' Each County
ExclusiveParkingSpaceshall be reservedfor the exclusiveuse of Countyfor County purposes. County, purposesmay include County vehicle parking, County employee perking, Countyvisitorpmking, orparkingforany otherpersonsassociatedwithservices providedby County.
2) ' CountyHoliday.' CoontyHolidayshell mean all days In a calendaryear which we observedw a County Holiday. The identificationof my CountyHolidaymaybe moddfedby theCountyBond of Supervisors, effecYrve30 days aft writer noticeIs providedbytheCountyExecutiveOfiicmtotheCityManager. 3) ' Joint Use Packing Spaces.' Each Joint Use Par"
Space shat be availableduongWork Hours for use by Countyfor Countypurposes, or use byanymemberof thegeneralpudic, w a fusFcomefirst-servedbasis. DuringNon - WorkFours, Joint Use ParkingSpacesshallbeforpublicuse'
a) ' City Use ParkingSpaces: Any parkingspace identified w 'CityUse' shallbeopenfor use by any memberof the generalpublic, providedthat the City and Countyagreeto negotiatein good faiththe regulationof the use by the general public such spaces Through means such as the Issuance of parking permits, dhaging fees for use, or designatingspaces for particularusers (such as parking for specialevents). The impositionof any regulateduse of City Use Parking Spaces, shall be mutuallyagreed upon by the City and County, and shall be memorializedwith specification In the O& U Agreement.
5) Work Hours: Work Hours shall mean the hours of 7:00
a.m. to 5:00 p,m., MondaythroughFriday, provided, however, Work Hours shall nor includeanyCountyHoliday.
6) ' Non -Work Hours' Any hour that is not a Work Hour
shall be a " Nar Work Hour'
7) ' PrivateParticipantParking Spaces: Shall mean those spaces licensed to private participants via sepmete agreements.

C. ' Diagramof ParkingStructure.' A Dlagrarrhof ParkingStructure, which sets forth the numberand locationof City Use Parking Spaces (comparedto Courtly ExclusivePackingSpaces, Joint UseParkingSpaces, and Prlvale ParticipantParkingSpaces) Is set forthon Extribl' D; aharhedheretoandincorporatedhereinby reference' Notwllhslanding the fmagoog, the parties anticipated that the exact location of ditment clawfica0ans of spaces may change In the future. The partiesthereforeagree to includea procedurefar changing locationsof spacesasnecessaryinthe08U Agreement.

9. AgreementParagraph11 Is amendedby deletingthe previoustextIn full, and replacing II withthefollowing:

11. Additional Parking Space Issues.

A. The parties anticipate that private participants may also be parties to the 08th Agreement executed pursuant to Paragraph 9. The pariles also anticipate that ham lime to line the parties may not themselves require the use of all spacesin the Garage, and thatsome numberof surplus spaces may thereforeexist.

Accordingly, thepartiesagreethatthe 06U Agreementmayallowfor a privatepartyto lease. LicenseorotherwiseusedesignatedsurplusspacesIntheGaragefromtheCounty withappravalof theCity, providedtheprivateparry's use of said surplusspaces shallnot reduce or diminish the use or availability of the parking spaces Identified in Agreement Paragraph10. AnysuchuseoftheGarageby a privateparry, shallbe memorializedin a privaleparticipationagreementbetweentheCountyandtheprivatepartya parties. Any fundsreceivedtom or asa resutiof suchlease, licenseor useby a privatepartyshallbe Pod* V Garage Caoperathe Apearenl - Sr" d ArnerdmeY
Pairs S of is
ceDoosoomscGPSwawP96gCGVZ ewakln- COX40NCoao rkd.ZC2MWCtean) doc Exhibit H, H- 1 and H- 2, Page xvi
ATTACHMENT 1

anocaled and used solely for costs of w tmcton, a operation and maintenance, of the Garage.

10. Defeub. If eitherparty (*demandingparty) has a good faith belief that the other party defaultingpally') is not canplying Will the terms of this Second Amendment, the demandingpally shallgive writtennoticeof the default (withreasonablespecN{ctty) to the defaultingparty, anddemandthedefaultto beaced withintendays of thenotice. It.. (a) the defaultingparryfalls towe thedefaultwithintendays of thenotice, or, (b) If morethenlen days are reasonablyrequiredto cure the defaultand the defaultingparry fans to give adequate written assurance a( due performance withN tat days of the notice, then ( c) the emending partymay are the defaultand the defaultingpartyshall pay the demanding party's costsresultingfromcuringthedefault

11. Notices, All micas requiredor conlemplatedby this SecondAmendmentshall be N writing end shall be deliveredto the respectivepartyas set forthN thissection. Communications shall be downed to be effectiveupon the firstto occur of-. (a) actualreceiptby a party's Authorized Representative, or ( b) actual receipt at the address designated below, a ( c) three waktlg days followingdepositInthe UnitedStalesMall of registereda certifiedmagsent to the address designatedbebw. The AuthorizedRepresenlalNeof eitherpartymay modify theirrespectivecentaclinformallmIdentifiedin (his sectionby providingnoticeto theother parry. The Authorized Representative of each party shall be identified on the ' AtIn' fine, below:

Cityof Napa:

Afro: CityManager
P. O Boz 660
Napa, California 94559- 0660
Copy: City Attorney .

P. O. Box 660
Napa, Ca6fomia 94559- 0660
County of Napa:

Attn: Napa CountyExecutive010cer
1195 Third Steel, Suite 310
Napa. California 94559
Copy: CountyCounsel
1195 Third Street
Napa, California 94559
Copy CommunityPartnershipManager
1195 Third Steel, Suite B- 20
Napa, California 94559

12. Moddkallons. This SecondAmendmentmaynal be modifiedwally or in any mannerother thanan agreementInwritingsignedbybothparties
PBr WV Genie Coweresn Aryrgrrent- Secmd Amen t
Pepe 6 d tri
rc1OInOS160NDSCOPSW,, aP rkYgr: ar T,", Cp tyCltyCa Arne 2lvr+ II/ .) doc Exhibit H, H- 1 and H- 2, Page xvii
ATTACHMENT 1

13. Eros Agreement This Second Amendment (Includingthe Agreementand all documents Incorporatedhereinby reference), compriseshe entireIntegratedunderstandingbetween thepartiesconcerningthemattersdescribedherein. This SecondAmendmentsupersedesall prim negotrdtions, agreements, and understandings regarding this metter, whether written or oral. The documents lrwaporated by reference Into this Second Amendment are complementary; whatIs calledforInoneIs bindingas dcalledforInall.

14. Each Pertv's Role in DragFig this Second Amendment Each perry to this Second Amendmenthes had an opportunityto reviewthis Second Amendment, confer with legai counselregardingthemeaningof this Second Amendment, and negotiaterevisionsto this Second Amerdmenl. Accordingly. neither party shell rely upon Civa Code section 1654 in orderto InterpretanyuncertaintyInthemeaningof thisSecondAmendment

15. Si r . The individualsexecutingthis Second Amendmentrepresentand warrantthat theyhavetheright, power, legalcapacity, andoull" Hytoenterintoand executethisSecond Amendmenton behalfof therespectivelegalentitiesof CountyandCity.

Pa MW Gnaae Luer & Arrre nl - Ss= W Ani& WmCi
Pape ] of to
OS' ONOSCOP5 42paP.A gGwapaP.* kg-C NyCtyeupMenM12I26VCba l/ Exhibit H, H- 1 and H- 2, Page xvtii
ATTACHMENT 1

IN WITNESS WHEREOF, thisSecondAmendmentwas exec led by thepartiesheretoas of the date fest above wriben.

Pa&mV Garage Cri irraliw AgreerreN - Sem Arrenft"
Page B al 18
cOMOSIBOWSCOPS� apaPmk'vgGwaWe d* gCn tyCIIVCoop,k x 2r 6 7ClemI dm Exhibit H, H-] and H- 2, Page xix
COUNTY OFOFNAPAA�
I
By. Uc

HAROLD M SKOWITE,
Chair of the Board
ATTEST: GLADYS COIL
Clerk the Board of Supervisors
By
APPROVED AS TO FORM:

ROBERT WESTMEYER• Comfy Counsel
By. KrishanChopra, Deputy
ApprovedbytheNapeCountyBoardof
Supervisors
Date: R��1,07
Pr secl'
q, � •✓'li'n, l:
r'Dewly Clerkof theBoard
CITY

FNOFNAPA
By -
tel ' j ( 1>
JILL TECHEL Ma) 2r
ATTEST
SARA COX, City Clerk
By O-- i- oma . CCrti.

APP V . O AS TO FORM:

MIC E /
137
f ET, T•, Attorney
By llitlN� ,`(�/

COUNTERSIGNED'
SCOTT NIELSEN. . fY'Audil
By: ;
Pa& mV GarageCri irraliw AgreerreN -Sem Arrenft"
Page B al 18
cOMOSIBOWSCOPS�apaPmk' vgGwaWed* gCn tyCIIVCoop,k x 2r 6 7ClemIdm Exhibit H, H-] and H-2, Page xix
ATTACHMENT 1

Exhlbit A
Diagram and Legal Description of Original Site
P. MV Cage CmperaW+ Ma " t - Se N� rntr:� g
E. h m
cdDB05' EOxO6COP' uVJa�ePvk496aeag� PmM�^FCanlyCtly(, wpMeM3filflOi � 1Ckm7 Jvc Exhibit H, H- 1 and H- 2, Page xx
ATTACHMENT 1

PARKING GARAGE

PROJECT AREA
The project areacorridor is defined by aline of demarcationdrawn parallel to the southeasterlyline of the parcelof land describedin the GrantDeed filed January 15, 2003 and recorded as Document No. 2003- 0002112 in the office of the Recorder of Napa County, Californiaand20feetfromthesoutheasterlyfaceof theNapaCountyHall of JusticeBuilding. Saidprojectdemarcationlineextendstothenortheasterlyand southwesterlylines of the abovementionedparcel and is offset by a parallel line 120.5 feettothesoutheastalsoboundedby theextendednortheasterlyand southwesterlylines of the above mentioned parcel
The above project area comprises 50. 614 square feet or 1.16 acres.

P iW Gaage Co wal ApeemeM— Serrntl Nnen ml
Ea
cc OSBONDSCOPS RPa ingraa lPaMvg Cw : yrAyCaop_Am 2(VM7 QClewt} Exhibit H, H- 1 and H- 2, Page xxi
ATTACHMENT 1

Exhibit B
Fifth Street Right of Way
N
Fehacy 1, 2001
BkF
BxF yah No. 2lulsl6ulo
ImOPERTY"HIDESCRIPTION

ENGINEERS

STREET VACATION
SURVEYORS AOI taunt ml prapcny siluud in th Cly of Nap; Cooay of Napa SGIc of

PLANNERS
LShfornu,. od&.. 6rd m fol,, a
BEING a portionoftherightofmy of FifthSuat m mid,urei u thmvnonRol cenam wp addd " Nm of Napa City'. filed Navemba 29. 1153, in Book " B' of Daae ut Pope433. NorteCountyRaord,, mid ponlon bong nam pankulatlydmdbed ou follows'
BEGINNING a a modlaly coma of Int 4 in Block 14m mid let ed blockwe aMM on ,aid imp m MA mnha'mrdY rightof my Its a FIM gloat; 7104CE ooRheomorh. toog, aid omth, mauty right of way low NoAb 57'0270• Fav 400.03 fat W o polo canthe nantmaerh palongotl® of mid oonhx aly Dight of wny line; THE34CEclangmid rcnheam,rly pmlmgodooNorth5717110• Em 7670 fm 10e point a a cotes, camve mlal7, having a mdfm of n 00 fat, fiam wbidh doetato bun South 56. 42' 56' Wit, THENCE" viog weld nxo rly oolon, otiou elo, mid curve though a eenucl angle of 9! 1' 1134', a ae divorce of 39 40 fat; THENCE South 57917P Wert 331 25 feet; TI PENCE along a curse m the right laving a nadim of 55.110 fat 0muph • ewlal agk of 157637', m we dmmce of 15-30 feet THENCE South 72'5Mr Wes 2436 fat THENCE along a a onthe k1l h vkg a rook., of 105A0 fed thomo • caod angle of 0177' 53', no we divm' e of 15.92 ket to Ile be'giradop of a oeveae eury THlN[ CE along mid revcx. luviog. mdlm of 23M fen tomo, a cath onto of M45', IV, an we ddmae of 2319 fat to the muhx my Mlongotion of said anhwtedy Agh a! vvy lam, THENCE anbmtedy along said nuht. evah ryalag. uon Noah 5T0130" Euv 7-63 fm to the 1,01IN7 OF BEGINNING.

Cuntouimg on o s of 10,015 egmrt fccL mmc m Im
A plotvomnp the above decobovl . sedan a . Rshed bertw o d vade a pen hereof m b lubtl " B'.

The d.. npto I. mod dol perB%F E.&.s
l.ul+a
B5' aG4?i
License 3pi.Wflbo0
P. L S. Na. 6711 - OII Y
Lica__ ae// G-/pi� v' ON] ON8 b�_
Onod: W
I-
pvr �,.
pv
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twl� maonm. e..aa Ir, a vY re.. r�. an.,• uric..

P.ye I of 2
Parkky GT p[ CoopaaM Agrea nwti - Secord / mermnenl
EaNhb
NDSCOPSN MP. UVCatapMpukNp tyCRyG k. e.62MM7 v20ean) doe Exhibit H, H - I and H- 2, Page xxii
ATTACHMENT 1

CURVE TABLE:
n • xa ag'
C] G- IaSCn'
n . var
U A• Oa9>' aa'
n -MN'
C4 c • W4541'
R: ] SM
L- aw
LINE TABLE:
u s7nw' n
sa'
u H Nai• ao' E
zN'

WHIC SCALE
0 n

CITY OF NAPA

COUNTY OF NAPA

STATE OF CALIFORNIA
EXHIBIT " B'
mnm
SubJccl PIAT
iTO
AC[ UPAX Y
STRET VACATq
s. sw job
D' '1.'
ay. o- vr( Fr Y�_
SHEET — 2 OE 2
Par" V Garage Ccapera W e Ayeemenl - Second MneMreM
E N011s
ce0 OSBOA COPSN Ws, kkvGeragvlP , 9l ComttCUyCmPM M- 2(21BN7 J2aman}- doc Exhibit H. H- 1 and H- 2. Page xxiii
ATTACHMENT 1

Exhibit C
Tlmelfne and Responsibility for Development
City/ County of Napa Downtown Parking Garage
Project Timeline
Item
Release of Request for Proposals to Design Builders
Interim Review with Design Builders
Proposals from Design Builders Due
Update Board of Supervisors/City Council on Proposals
Announcement of Successful Design Builder
Board of Supervisors Award Design Build Contract
County Board of Supervisors 8 City Council Approval
of Operations and Use Agreement
County Issuance of Noticeto Proceed to Design Builder
Design Development Submittal
Approval of Design Development
Offsite Document Submittal
Offsite Document Approval
Foundation Document Submittal
Foundation Document Approval
100% Construction Document Submittal
100% Construction Document Approval
Start of construction — Site Work
Final Acceptance of Construction
Targeted Date
January 29, 2007
February 23, 2007
March 16, 2007
March 27, 2007
March 30, 2007
April 24, 2007
Apnl/May 2007
May 14, 2007
May 29, 2007
June 5, 2007
June 5, 2007
July 5, 2007
June 27. 2007
July 19, 2007
July 19, 2007
August 16, 2007
June 30, 2007
Summer/ Fall 2006
Por1FpGaspeCooper Pgreemmil -SemndMnendmenl
Frh
iV8oSZONDSCOPStLOePa6f7n—+ PwwkkW- C.. 4C4WAWAmeb' Z 2MW rWeanld.

Exhibit H, H - I and H- 2, Page xxiv
ATTACHMENT 1

Exhibit D
Diagram of Parking Structure and Designated Spaces

ANTICIPATED DIAGRAM OF PARKING STRUCTURE

SETTING FORTH NUMBER AND LOCATION OF

COUNTY, CITY AND OTHER PARTICIPANT PARKING SPACES

SUBJECT TO CHANGE THROUGH DESIGN - BUILD PROCESS
GROUND LEVEL = DEDICATED TO SHORT- TERM PUBLIC PARKING AND CITY USE
SECOND LEVEL = LONGTERM PUBLIC AND JOINT USE PARKWG
THIRD LEVEL = PRIVATE PARTICIPANT PARKING
FOURTH LEVEL = COUNTY ANO JOINT USE PARKING
Parking Gvage Coop . Ne Agr.. M- S. dNreM , N
Edi01U
cd OSBONDSCOPSW2p2P26kgGxaga` Parklnp- CwiyCllyC� Pmend-2121 7v2Cl n), o Exhibit H, H- 1 and H- 2, Page xxv
ATTACHMENT 1

Im
PwWw Grape Cooprva Agreement-S*UT4 AMC, pbaiI
E# Iblb
cc, n1B OP coe5wvaPahYgGrap Ww WQfw WIYCOcP- A- end- 21vfl9] � Can} CM Exhibit H, H- 1 and H- 2, Page xxvi
Fjl
ATTACHMENT 1

59 PaM1q Gaspe GppP MM Apearenl - Secdb Aman l
E. nelb
ccO100SBON0.5COP5v+aGaPoihYgGan7elPeM1blPGanrydryCmV/Vrcrd-�IVBIAI 12CMri tloc Exhibit H, H - I and H- 2, Page xxvii
ATTACHMENT 1

PaWip 6ar+GsCcGpMM Ayepnrlll - SeaN AmenbneN
Eahtlls
Q�90..lBONOSLOVSWOiP�Alnp(ibapdPrktiPCoimlyG9yCaNArnul6ijLB' U1 �tClean).EOC Exhibit H, H- 1 and H- 2, Page xxviii
ATTACHMENT 1

pukV crew � xgre - Sernt Mse++ w
arae�
cc1UBOSBONOSCOPS�M+maParklgGaaYaWMt'p'Cu/� Cvt/Ca6AmenC3i] J69T rlQemlOoc Exhibit H, H- 1 and H- 2. Page xxix
ATTACHMENT 1

EXHIBIT " P,, " I- I„ and " 1-2”
Participant Agreements
Exhibit J, M and J- 2, Page i
ATTACHMENT 1

NAPA COUNTY AGREEMENT NO. C

PARKING GARAGE PRIVATE PARTICIPATION AGREEMENT
TBTS PARKING GARAGE PRIVATE PARTICIPATION AGREEMENT (" Agreement') is made and enteredinto as of this 9th day of January, 2007, ("CommencementDate") by and bcrwe" the COUNTY OF NAPA, a political subdivision of the State of California, hereinafter referredto as "COUNTY", and NAPA RIVERFRONT, LLC whose mailing addressis 100 W.

CuttingBlvd., Richmond, California 94804, hereinafterreferredtoas "PARTICIPANT."

RECITALS
WHEREAS, COUNTY planstoconstructafourlevelparkingstrocmre ("Puking Structure") located at theCOUNTY superblock site borderedby Main, Fifth, Coombs and Third Streetsin Napa (" Property'l a graphic description of which is depictedin Exhibit " A" and a legal description of whichisattachedheretoasExhibit "B" bothincorporatedhereinby referencewhichis anticipated to accommodateapproximately four hundred sixty-six (466) spacesand cost approximatelyFifteenMillion Seventy -FiveThousandTwo HundredDollars (SI 5,075,200) to construcL A diagram of the Parking Structurewhich setsforth the anticipatednumber and location, ofthe PARTICIPANT, COUNTY and CITY Parking Spacesand other participant parking spaces, based on tentative plan subject to change through the design build process, is attached hereto and incorporated herein as Exhibit " C"; and
WHEREAS, COUNTY anticipatesusing the design -build process in order to complete the design and construction of the Parking Structuy with ananticipatedcontract award dateof Spring of 2007, and an anticipated completion of construction in the summer of 2008; and WHEREAS, COUNTY planstoreserveapproximatelyeighty-five (85) perkingspacesonthe fourth level of the Panting Structureto be available for the sole useof COUNTY vehicles and have onehundredfifteen (115) non -reservedparkingspacesonthesecondlevelof thePantingStrucnue for employees and visitors; and
WHEREAS, COUNTY hasenteredintoNapaCountyAgreementNo. 6372withtheCityof Napa ("C1TY') by whichCITY hasagreedtoparticipatein fundinga portionof theParking Structure in remm for a certain number of puking as designatedin Exhibit " C" referencedabove; and
WHEREAS, in ordertooptimizetheutilizationof thePropertyfortheParkingStrunture, COUNTY anticipatesenteringintoParkingGarageParticipationAgreementswithuptothree ownersof propertyneartheParkingStmctwcobywhichtheCOUNTY maylicenseupto approximatelyonehundredthirty (130) puking spacesforusebysuchlicensees (including PARTICIPANT and or its agents, employees, contractors, licensees, assignees, sublessees, transferees, representatives, guests, customers, invitees, or visitors). Such spaces are in addition to theCOUNTY andCITY puking spacesreferredtoin thethirdandfourthrecitalsabove; and cc% Dzom1 saPLeGNrgeairtrrmuraa id
Exhibit 1, 1- 1 and 1-2, Page ii
ATTACHMENT 1

WHEREAS, PARTICIPANT desirestopurchasealicensefortheuseof approximatelyforty-six 46) parkingspacesintheParkingStructurebasedonthetermsandconditionssetforthinthis Agreement.

TERMS
NOW, THEREFORE, The parties agree as follows:

1. Contribution for Licensing Parking Spaces.
a) PARTICIPANT shall make available approximately One Million Five Hundred Dollars S1.500,000) totheCOUNTY for licensingcertainperkingspaceso moreparticularlydescribed hereinwithinthirty (30) daysafterexecutionofthisAgreementTheestimatedtotalcostof the ParkingStructureis FifteenN illien Seventy -FiveThousandTwo HundredDollars (115, 075,200) Estimated Total Cost") and is set forth in more detail in Exhibit " D" attachedhereto and incorporatedbyreferenceherein.. Theestimatedcost -perparkingspace, basedonanestimatedfour hundredsixty-six (466) spacesis Thirty -Two ThousandThreeHundredFiftyDollars ($32,350).

The actual cost of theParking Structure shall be the amountof the accepteddesign build proposal received for the Parking Structure plus the combined estimatedThree Million One Hundred Fifieen ThousandTwo HundredDollars ($3,)15,200) costsforthefollowingitems (tobedetermined exactly and subject to adjustment after construction of the Parking Structureis complete):
construction contingency; County architect; County project and construction management; utility fees, inspections, labor compliance and permits; and County Public Works administration (" Actual Cost'j. TheActualCostdividedby thetotalnumberof parkingspaces (466) equalsthecostper parkingspace. The costperparkingspacemultipliedby thenumberof ParticipantParkingSpaces forty-six (46) equalstheactualParticipantconmbution ("ActualParticipantConlnbution'�. The Actual Participant Contribution shall be in the form of a letter of credit or equivalent financial instrument, includingbutnotlimitedtoacertificateof deposit, in aformreasonablysuitabletothe COUNTY. COUNTY shall have theright to draw upon the funds in theletterof credit in incrementsof uptoFiveHundredThousandDollars (1500,000) asneededfortheconstructionof theParkingStructure; providedhowever, thatCOUNTY shalldrawuponthefordsprovidedby COUNTY, CITY, ®rdPARTICIPANT onlyafterCOUNTY hasexecutedaconstructioncontract andconstructionof theParkingStructurehascommenced. COUNTY shalllicenseapproximately forty-six (46) parking spaces ("PARTICIPANT Parking Spaces') to PARTICIPANT in accordance with the terms of this Agreem® l; provided, however, COUNTY' s obligations may be terminatedin accordancewith Paragraph 14. The location of thePARTICIPANT Parking Spaces has been determinedby COUNTY in consultationwiththePARTICIPANT. A diagramof theParking Structuresetsforththenumberandlocationof theCOUNTY, CITY, andPARTICIPANT Parking Spacesandotherparticipantparkingin Exhibit "C" referencedabove. In theeventthatanyof the onehundredfifteen (115) non -reservedparkingspacesreferedtoin thethirdrecite] abovearelater convertedtoreservedspacesby COUNTY, PARTICIPANT ParkingSpacesshallberelocatedto thesecond level of theParking Structurm
b) COUNTY shallkeepPARTICIPANT regularlyinformedregardingthestatusof designof theParkingStructure, PARTICIPANT maysubmitto COUNTY suggestedmodificationstothe design, andCOUNTY shallreasonablyconsideranysuchsuggestionssubmittedby PARTICIPANT.
rrureosac� ru, w� wtmeronC, m mr
Exhibit 1, 1- 1 and 1-2, Page iii
ATTACHMENT 1

c) After design -build bids arereceived by COUNTY, COUNTY sbal) provide PARTICIPANT written notice ("COUNTY Notice") asto the Actual Total Cost of the Parking Structure (as defined above), andthecostperparkingspace, andwhetherCOUNTY hassufficientfundsavailableto constructaParkingStructurewhichincludesthePARTICIPANT ParkingSpaces. If theCOUNTY Notice indicates that,
i) thecostperparkingspaceis ThirtyThreeThousandDollars (533,000) orless, COUNTY and PARTICIPANT shall meet and confer in a good faith effort to negotiate a modificationtothisAgreementbywhicheitherPARTICIPANT' s Contributionis decreased, or the numberof PARTICIPANT ParkingSpacesis increased; or
ii) thecostperparkmgspaceis greaterthanThirtyThreeThousandDollars (533,DD0), thenPARTICIPANT mayeithernegotiateamodificationto thisAgreementwiththeCOUNTY regarding theActual PARTICIPANT' s Contribution and the number of PARTICIPANT' s Parking Spaces, or PARTICIPANT mayterminateitsobligationsunderthisAgreementbyprovidingwritten noticeto COUNTY withinthirty (30) daysfollowingreceiptof theCOUNTY Notice (unwhich eventtheCOUNTY shallnotdrawuponanyof PARTICIPANT' s sourceof funds, andthe COUNTY shall execute and deliver to PARTICIPANT and the Issuer of the letter of credit such documentationasis reasonablynecessaryto cancelandterminatethesamewithin30daysof PARTICIPANT' s notice of termination).

Withinsixty (60) daysfollowingreceiptof theCOUNTY Notice, exceptin theeventof PARTICIPANT' s termination of this Agreement pursuant to Section 1(exii) above, PARTICIPANT and COUNTY shall executean amendmentto this Agreement indicating the PARTICIPANT' s total Contribution and the total numberof Participant's Parking Spacesbased on the terms of this Section I ( c)-

2. Term of the Agreement.

The term of this Agreement shall cormneirm on the dateof execution of this Agreement and shall be for a term of fifty- five (55) yearsunless terminatedearlier in accordancewith Paragraph 14 Termination for Cause), except that the obligations of the parties under Paragrapb 13 Indemnification) shall continue in frill force and effect after said expiration dateor early termination datein relation to actsor omissions occurring Prior to such dates.

3. Damageor Destructionof Parking Structure.
a) If the Parking Structureis damagedor destroyedby a casualty or similar eventthat results in areductionof ParkingRights, andlessthanfifty-five (55) yearshaveelapsedfromthe Commencement Date, then the COUNTY shall make good faith efforts to repair or replace the ParkingStructureontheProperty, providedtheCOUNTY hassufficientfundsfortherepairor replacementfrominsuranceproceedsor fromathirdpartysourceof fiords. COUNTY represents that it participates in a self- insurance program as further described in Paragraph 12 below. b) If theParkingStructureis damagedordestroyedby acasualtyorsimilareventandfifty-five 55) or more years have elapsed since the Commencement Date, the COUNTY shall not be obligated to replacethe Parking Structure -
c) Withinonehundredtwenty (120) daysfollowingthedamageordestructionoftheParking Structure described in subparagraph (a), the COUNTY shall notify PARTICIPANT as to whether it will replacetheParkingStructureontheProperty, or whetherit lackssufficientfundsfortherepair or reptacementilurreof. If the COUNTY doesnot elect to repair or replace the Parking Structure on theProperty, eitherpartymayterminatethisAgreement, in whicheventtheCOUNTY shall n' 1rY. W1G� af1Nm. PL� � tN� m Pnvren( lcnrvl he
Exhibit 1, 1- 1 and 1-2, Page iv
ATTACHMENT 1

reimburse PARTICIPANT to the extent that PARTICIPANT did not realize the benefits of its Contribution for the full term of this Agreement. By way of example, if PARTICIPANT contributedOne Million Dollars ( S1,000,000), and the Perking Structure was damaged or destroyed twenty-two (22) yearsintothefifty-five (55) yeartermandtheCOUNTYelectednottorepairor replace the structure, PARTICIPANT would be entitled to a Six Hundred Thousand Dollars 5600.000) reimbursementof its Contribution, representingsixty percent (60°1.) of its original contribution, basedon theunavailabilityof ParkingRightsfortheremainingthirty-three (33) years, or sixty percent (60°A)) of the initial termof this Agreement. d) If theParkingStructureis damagedby acasualtyorsimilarevent, duringtheperiodin whichthePerkingRightsarereducedor unavailable, theCOUNTY shallreimburse PARTICIPANT on a pro -ratabasis basedon a calculation of the PARTICIPANTS cost per day for suchParkingRightsgiventhesizeof theContributionandtermof theAgreement. Suchrefund shall be thePARTICIPANTS soleremedy for thereduction or lack of availability of the parking provided by theParking Rights.
e) Afterfifty-five (55) yearshaveelapsedsincetheCommencementDate, COUNTY in itssole discretionmaydecidetodiscontinuetheuseof thePropertyforaPantingStructure. In suchcase, COUNTY shallprovidePARTICIPANT onehundredtwenty (120) daysnoticepriortothe expirationdateof theAgreement. If afterfifty-five (55) yearshaveelapsedsincethe CommencementDate, and COUNTY still desiresto operatethe Parking Structure, COUNTY and PARTICIPANT agree to negotiate in good faith an extension of this Agrc® eot under the same terms and conditions.

4. License for Parldng Rights.
a) "ParkingRights" shallmeanPARTICIPANT' sexclusiverighttonueof anestimatedforty- six ( 46) spaces, which shall be morespecifically determinedpursuantto the calculations based on the Actual Cost of the Parking Structure setforth in Section I above and shall be designatedas Reserved Spaces" for PARTICIPANT.
b) Tim COUNTY hereby grantsto PARTICIPANT ( including PARTICIPANT' s agents, employees, contractors, licensees, assignees, sublessees, transferees, representatives, guests, customers, invitees, or visitors), a license to use for the termof theAgreement the Parking Rights as definedaboveandmoreparticularlysetforthinthediagramin Exhibit "C" attachedhereto. The COUNTY andPARTICIPANT agreetocooperatein goodfaithin determininga methodfor designatingtheReservedSpaces, andensuringthatPARTICIPANT' srightsto suchReserved Spaces areprotectedand enforced. COUNTY and PARTICIPANT may also mutually agreeto a change in thelocation of Participant Parking Spaces.

5. Operations and Maintenance of Parking Structure.
a) OperatingCosts.
i) Costs for the operationsand maintenanceof theParking Structure ("Operating Costs') areestimatedatapproximatelyTwo HundredThousandDollars ($200,000) peryear. This amount shall be determinedwith more specificity in anOperations and Use Agreement to be enteredinto in the future among COUNTY, CITY, PARTICIPANT andother participants. For purposesof this Agreement, Operating Costs shall include commercially reasonable expensesand costswhichCOUNTY shallpayorbecomeobligatedtopaybecauseof orin connectionwith the ownership, operation, repairand/ormaintenanceof theParkingStructure, including without limitation: (A) all maintenance, janitorial and security costs; (B) costs for all materials, supplies and r' lA1YK� 0. l1N� ne4� rW+ menwfmwllw� lhe
Exhibit 1, 1- 1 and 1-2, Page v
ATTACHMENT 1

equipment; (C) costs of water, electricity, refuse collection, parking lot sweeping, landscaping, and otherutilitiesandservicesrelatingtotheParkingStructure; (D) allcostsof alterationsor improvementstotheParkingStructuremadetoachievecompliancewithanyfederal, stateandlocal law including, without limitation, the Americans with Disabilities Act (42 U.S.C. Section 12101ct seq.) ("ADA"), ortoreduceOperatingCostsorimprovetheoperatingefficiencyof theParking Structure. all of which costs will be amortized over the useful life of such alterations or improvements asCOUNTY shall reasonablydetemtine; (E) costs for repairs. replacements, and generalmaintenanceof theParkingStructure, butexcludinganyrepairsorreplacementspaidfor out of insuranceproceeds or by otherparties; (F) costs of maintaining machinery, equipment and directional signageor other markers; and (G) any insurancepremiumsthat arespecifically allocatable to insuring the Parking Structure.

Operating Costs shall not include (A) capital improvements (exceptas otherwise provided above); (B) costs of special servicesrenderedto other private participants (including PARTICIPANT) for which a special charge is made: ( C) attomeys' fees and other expenses incurred in connection with the Parking Structureor enforcing rules and regulations for the Parking Structure; (D) depreciationor amortization, otherthanasspecificallyenumeratedin thedefinition of OperatingCostaabove; (E) nonrecurringcostsincurredtoremedydefectsin theoriginal constructionof theParkingStructure; and (F) repairsor otherworkneededdueto fire, windstorms, orothercasualtyorcausetotheextentCOUNTY hasreceivedinsuranceproceedsfor suchrepairs or other work.
ii) PARTICIPANT shall pay to COUNTS, " PARTICIPANT' s Parking Percentage Share' of theOperatingCostsonabi-monthlybasiscommencingonthefirstdayof thefirst month followingthecompletionof theconstructionof theParkingStructure. Forpurposesof this Agreement, "PARTICIPANT' s Parking PercentageShare" shall meanthe number of spaces licensed to PARTICIPANT for its Parking Rights pursuantto this Agreement divided by the total numberofparkingspacesintheParkingStructure. If thenumberof spacesin thePerkingStructure or PARTICIPANT' s Parking Rights arechanged, then PARTICIPANT' s Parking Percentage Share shall be adjustedaccordingly.
iii) The COUNTY shall beresponsible for "COUNTY' s Parking Percentage Share" of the Operating Costs. " COUNTY' s Parking PercentageShare" shall mean the number of spaces reserved for theCOUNTY' s usepursuantto this Agreement divided by the total number of parking spacesin theParkingStructure. If thenumberof spacesin theParkingStructureorthenumberof COUNTY' sreservedparkingspacesarechanged, thenCOUNTY' sParkingPercentageShareshall be adjusted accordingly.
iv) Itis understoodamongthepartiesthattheCITY shallberesponsibleforashareof theOperatingCoststobedeterminedmorespecificallyin asubsequentOperationsandUse AgreemententeredmtoamongtheCOUNTY, CITY, PARTICIPANTS andotberparticipants; provided however, thatthe extentof CITY' s responsibility for a shareof the Operating Costs as determined in the Operations and Use Agreement, shall have no effect on the calculation of PARTICIPANT' sOperatingcostspursuanttoParagraph5(a)(ii), above.. v) COUNTY shall also establisha reservefund in the amount of Thirty Thousand Dollars ( 530,000) annually comprised of proportional contributions from COUNTY, CITY, PARTICIPANT and other participants (" Reserve Fund") for the duration of this Agreement for the preventive maintenance, periodic repair, replacement of components, and related improvements of the Parking Structure, which shall be contributedto proportionally by COUNTY, CITY, PARTICIPANT, and other participants. The Parties agreeto regularly negotiate and determine Exhibit 1, 1- 1 and 1-2. Page vi
ATTACHMENT 1

necessaryadjustmentstotheamountof theReserveFundeveryfive (5) yearsormorefrequentlyas needed for theduration of thtsAgreement. The County Auditor -Controller shall be responsible for establisbing and maintaining theReserve Fund for the duration of this Agreement. vi) PARTICIPANT shallhavetherightto employvendorsandcontractorsfor the operationsof theParkingStructure, includingbutnotlimitedtovaletoperators. vii) Notwithstanding any termsor provisions of this Paragraph5(a) to the contrary, in the event thatthe COUNTY chargesthe public topark in the Parking Structure ("Public Parking Fees'), theproceedsfromsuchPublicParkingFeesshallbeusedtopaytheOperatingCostsforthe ParkingStructure. To theextentthataportionof theOperatingCostsarepaidwith theproceedsof PublicParkingFees, theOperatingCostspayableby COUNTY, CITY, aridPARTICIPANT pursuant to this Paragraph 5(a) shall be offset such thateach party shall only be responsible for their parkingpercentageshareof theremainingOperatingCosts.
b) Maintenance.
i) Followingcompletionof constructionof theParkingStructure, theCOUNTY shall maintain the Parking Structure in good condition and repair consistent with customary maintenance practices. Any maintenancea improvementworkperformedon theParkingStructureshallhe diligently performed and completedin a good, workmanlike and timely manner, and shall be completed in such a manner as to return the Parking Structure to no less thanthe same condition that it was in prior to the commencementof such maintenance and repair work. The COUNTY shallcoordinateandreasonablycooperatewiththePARTICIPANT in performingtherepairand maintenance obligations described in this Agreement and shall give the PARTICIPANT reasonable noticepriortocommencinganyrepairormaintenanceto theParkingStructure. ii) Any work done on the Perking Structure by the COUNTY shall be performed in a manner which causesthe leastinterferencereasonably possible, and reasonablestepsshall be taken by COUNTY to ensurethat theperformanceof such maintenanceend repairs does not adversely affect the PARTICIPANT.
iii) The parties to thusAgreement shall be required to contribute to the cost of any maintenanceaspartof their respectiveobligations for Operating Costs, asdescribed in Paragraph 5(a) above.

6. General Use Prohibitions.

PARTICIPANT and COUNTY agree that in connection with and to the extent of the PARTICIPANTS and COUNTY' s use and operation of the Parking Structure, PARTICIPANT and COUNTY will not:
a) Create, cause, maintain or pemuitany nuisance in or about the Parking Structure; or b) Commit or suffer to be committed any waste in or about the Parking Structure or the Property; or
c) KnowinglyallowtheParkingStructuretobeusedfor anyunlawfulpurpose; or d) Permit undueaccumulations of garbage, trash, rubbish or any other refuse in the Parking Structure; or _
e) CauseorpermitobnoxiousodorstoemanatefromorbedischargedinorfromtheParking Structure; or
f) Create, rause, maintainorpermitanynoiseor souredthatis objectionabledueto intermittence, beat, frequency, shrillness or loudness (excluding the occasional noise from an errant car alarm); or
Exhibit 1, 1- 1 and 1-2, Page vii
ATTACHMENT 1

g) Create, reuse, maintain, orpermitcreationof my dust, dirt, or0y ashin excessive quantifies; or
h) Create, cause, maintain or permit any motor vehicle servicing, including but not limited to the washing of cars, or repair shop that provides any such servicing.

7. Security; Enforcement.

Theregularhoursof operationof theParkingStructureby COUNTY shallbesetforthwith morespecificityin anOperationsendUseAgreementtobeenteredintoamongCOUNTY, CITY, PARTICIPANT and other participants in the future. The COUNTY shall provide security for the ParkmgStructureforcertainhoursofoperationoftheParkingStructure, whichshallbe substantiallyconsistentwiththelevelof servicethatCOUNTY or CITY providesin otherparking structuresin Downtown Napa; however, sucb provision of security may not befor the entire durationof theoperationalhoursof theParkingStructurereferencedimmediatelyabove.

COUNTY will notprovidesecurityatothertimeseventhoughtheParkingStructureisbeingused forparkingforpublicuse. At PARTICIPANTS solecost, PARTICIPANT mayprovideadditional securityduringhoursin whichtheCOUNTY is notprovidingsecurity. ThePARTICIPANT shall coordinate my additional security itprovides with the security the COUNTY provides and with securityforotherparticipantsin similarparkingparticipantagreements.

The COUNTY and PARTICIPANT agreeto cooperatein good faith in determining a method for designatingthe Reserved Spaces, and ensuring that PARTICIPANT' s rights to such Reserved Spaces are protected and enforced.

S. Approvals of Transfers.

Transfd" means: any totalor partial sale, sublicense, assignmentor convcymce, or any trust or power, or anytransfer in any other modeor form, of or with respectto [his Agreement, of the ownershipin theParkingRightsortinyinteresttherein, or tinycontractor agreementtodoanyof the same.

Subject to the terms and conditions of this paragraph, PARTICIPANT shall have the right to Transferits PantingRights. Any Transfernotpermittedbythisparagraphshallbenull andvoid. In the eventthatPARTICIPANT desires toTransfer its Parking Rights, PARTICIPANT shall provide COUNTY andCITY withthirty (30) daysnoticeof tinysuchTransfer, andsuchTransfershallbe subject to theCOUNTY' s consent, which consent shall not beunreasonably withheld, conditioned or delayed. Notwithstandingtheforegoing, if eachof thefollowingconditionsaresatisfied, PARTICIPANT' s Transferof itsParkingRightsshallnotbesubjecttoCOUNTY' sconsent. a) The transferee enters into an assignment and assumption agreement with the PARTICIPANT pursuant to which the transferee agrees to undertake the obligations of PARTICIPANT under this Agreement;
h) The PARTICIPANT and the transfereeexecuteand provide to the COUNTY documentation reasonablysatisfactoryto theCOUNTY of PARTICIPANT' sassignmentof therightsand delegation of duties undcr this Agreement to the transferce; c) There is no uncured Event of PARTICIPANT Default under this Agreement; and d) FollowinganyTransfer, PARTICIPANTmustremainincompliancewiththeCITY's parkingrequirements (assetforthin applicableusepermits, etc.) regardingthePARTICIPANT' s obligationtoprovideparkingfortheuseof itsproperty
In additiontotheforegoingtermsandconditionsregardingthePARTICIPANT' s rightsto TransferitsParkingRights, PARTICIPANT mayassignitsrightsunderthisAgreement, without rliTnnCW. rIN�., P4� NJ� givvr{ mnCloruel de[
Exhibit I, 1- 1 and 1-2, Page viii
ATTACHMENT 1

my approvalof COUNTY or CITY, to my entity which is wholly owned by PARTICIPANT or by aparentof aPARTICIPANT, oranyentityin whichPARTICIPANT oraparentof PARTICIPANT hasanequityinterestandis ageneralormanagingpartner/member, andshallincludemy newor existing entity so long assuch entity is owned, controlled or managedby (or under common control with) PARTICIPANT. No assignmentbyPARTICIPANT shallresultin PARTICIPANT being releasedfrom my obligations of PARTICIPANT to COUNTY under this Agreement

9. Prohibited Encumbrances.

PARTICIPANT shall not have theright to place or createmy mortgageor deed of trust upon the Parking Rights or the Property, or place or suffer tobe placed upon the Parking Rights or Property or my lien, levy or attachmentor other encumbrance. Notwithstanding the foregoing, in connectionwith obtaining financing relatedto PARTICIPANT' s real property, PARTICIPANT mayassignitsParkingRightstoalenderasadditionalsecurityforthefinancingof suchreal property. However, my suchfinancingandassignmentforsecuritypurposesshallrequucthe lender tobe subjectto all termsof dm Agreement -as of thedateof foreclosure (i.e., all obligations and restrictionsrelated to PARTICIPANT' s use of the Parkmg Structure).

Any suchmortgage, lien, levy or attachmentor other encumbrancesprohibited by this pnmgmph shallbedeemedtobea violationof thiscovenantonthedateof itsexecutionor filing of record, regardless of whether or when it is foreclosed or otherwise enforced, unless PARTICIPANT shall, within sixty (60) days of such dateof execution or filing of record, remove my such mortgage, lien, levy or attachmentor other encumbrances.

10. Rlgbts of Lenders.

If PARTICIPANT provides COUNTY with the name of any lendo to whom PARTICIPANT hasmade a Transfer, COUNTY shall give such lender notice of my default or failure by PARTICIPANT under this Agreement and such lender shall have the right to cure such default or failurewithinrtinety (90) daysfollowingreceiptof suchnoticeof PARTICIPANT' sdefault

11. Tansfer by the COUNTY.

At my timeandwithouttheconsentof thePARTICIPANT, theCOUNTY mayTransferits rights andobligations under this Agreement so long as the transfereeowns or has the right to operatetheParking Structure. A transfereeof COUNTY' s rights and obligations under this Agreementshallagreein writingtoperformall obligationsof theCOUNTY pursuanttotheterns of this Agreement, including withoul limitation, the obligation to maintain iruurmce on the Parking Structureatsuchlevelsasarereasonableandcustomaryforsuchpropertyandimprovements.

12. Insuraace.

COUNTY is a participant in a self-insurance program with casualty and excess liability coveragelimitsup-to'Twenty-FiveMillion Dollars ($25,0110,000) tocovermy third -partyclaimsfor damagesagainsttheCOUNTY resultingfromtheoperationsof theParkingStructure. The COUNTY also maintains first -party property insurance coverage in the amount of Seventy -Five Million Dollars (S75,000,000) whichincludesearthquakeandfloodliabilitytocoveranysuch potentialdamagetothePartingStructureThePARTICIPANT shallbenamedasanadditional insured for such policies. COUNTY shall maintain the above mentioned insurance for the duration of this Agreement
c�\fTBnSVyrW� oPk. riAli� Nnerf�. rfl�� el be
Exhibit], 1- 1 and 1-2. Page ix
ATTACHMENT 1

However, in the event PARTICIPANT hires any vendor or contractor to perform any service in connection with the operationsof the Parking Structure including but not limited to valet services, PARTICIPANT shall, or require its vendor or contractorto obtam liability insurancewith a minimum of One Million Dollars ($ 1,000.000) of liability coverage to rover such vendors or contractors. Such coverage shall be subject to the reasonable approval of COUNTY' S Risk Manager andverified by certificates of coverage. PARTICIPANT shall be namedas an additional insured for any such vendor or contractorinsurancecoverage.

13. Hold HarmFess/ Defensellndemnificatioo.
a) To the full extentpermitted by law, PARTICIPANT shall hold harmless, defend at its own expense, andindemnifyCOUNTY andtheofficers, agents, employeesandvolunteersof COUNTY from any and all liability, claims, losses, damagesor expenses, including reasonable attorney's fees, forpersonalinjury (includingdeath) or damagetoproperty, arisingfromall actsoromissionsof PARTICIPANT or its officers, agents, employees, volunteers, contractors and sub -contractors in renderingservicesunderthisAgreement, excluding, however, suchliability, claims, losses, damagesor expensesarising from the negligence or willful actsof COUNTY or Its officers, agents, employees or volunteers. Each party shall notify the other party immediately in writing of any claim or damage related to activities performed under this Agreement The parties shall cooperate with each otherin the investigation and disposition of any claim arising out of the activities under IbisAgreement. providingthatnothingshallrequireeitherpartytodiscloseanydocuments, records or commumeehons that are protected under peer review privilege, attorney- client privilege, or attorney work product privilege.
b) To the full extentpermittedby law, COUNTY shall hold harmless, defend at its own expertse, andindemnify PARTICIPANT and the officers, agents, employees and volunteers of PARTICIPANT from any and all liability, claims, losses, damagesor expenses, including reasonableattorneys fees. for personal injury ( including death) or damageto property, arising from all acts or omissions of COUNTY or its officers, agents, employees, volunteers, contractors and sub -contractorsin renderingservices under this Agreement, excluding, however, such liability, claims, losses, damagesorexpensesarisingfromthenegligenceorwillful actsof PARTICIPANT orits officers, agents, employeesorvolunteers. Eachparryshallnotifytheotherpartyimmediately in writing of any claim or damagerelatedto activities performed under this Agreement The parties shallcooperatewitheachotherin theinvestigationanddispositionof anyclaimarisingoutof die activities under this Agreement, providing thatnothing shall require eitherparty to disclose any documents, records or communications thatareprotectedunder peerreview privilege, attorney- client privilege, or attorney work product privilege.

14. Termination for Cause.

If eitherparty shall be in Default under this Agreement and fail to cure such Default within thirty (30) days of receiptof wntien notice from the other party describing the natureof the Default, thenon -defaultingpartymay, in additiontoanyotherremediesitmayhave, terminatethis Agreementbygivingthirty (30) dayspriorwrittennoticeto thedefaultingpartyin themannerset forth in Paragraph 17 ( Notices); provided, however, that if the nature of such Default is such that the same is curable but cannotreasonablybe cured within such thirty (30) day period, a parry shall not be deemedto be in Default if such party shall within such period commence such cure, provide reasonablewrittenassuranceof dueperformanceandthereafterdiligentlyandcontinuallyprosecute the sameto completion. COUNTY herebyauthorizes theNapa County Executive Officer to make Exhibit 1. 1- 1 and 1-2. Page x
ATTACHMENT 1

all decisions and take all actions required under this paragraph to terminate this Agreement on behalf of COUNTY for cause

15. Default.
a) Thefollowingshallconstitutea "Default' by PARTICIPANT underthisAgreement: a failure by PARTICIPANT to observe and perform any material provision of this Agreement to be observedorperformedbyPARTICIPANT, wheresuchfailurecontinuesforsixty (60) daysafter notice thereof from COUNTY; provided, however, that if the nature of the default is such that the same is tumble but cannot reasonablybe cured within such sixty (60) day period, PARTICIPANT shall not be deemed to be in default if PARTICIPANT shall within such period commence with the cure, providereasonablewrittenassuranceof dueperformanceandthereafterdiligentlyand continually prosecute the same to completion.
b) The following shall constitutea "Default' by COUNTY under this Agreement: a failure by COUNTY toobserve andperform any material provision of this Agreement to be observed or performedbyCOUNTY, wheresuchfailurecontinuesforsixty (60) daysafternoticethereoffrom PARTICIPANT; provided, however, that if the nature of the default is such that the same is curable butcannotreasonablybecuredwithinsuchsixty (60) dayperiod, COUNTY shallnotbedeemedto be in default if COUNTY shall within such period commence with the cure, provide reasonable wrinenassuranceof dueperformanceandIberealladiligentlyandcontinuallyprosecutethesame to completion.

16. No Waiver.

The waiverbyeitherpartyof anybreachorviolationof anyrequirementof thisAgreementshall notbedronedtobeawaiverof anysuchbreachin thefuture, orof thebreachof anyother requirement of this Agreement

17. Notices.

All noticesrequired or authorizedby this Agreement shall bein writing and shall be delivered in personorbydepositin theUnitedStatesmail, by certifiedmail, postageprepaid, returnreceipt requested Any mailed notice, demand, request, consent, approval or communication thateither party desiresto give the otherparty shall be addressedto the other party at the address set forth below. Either party may changeits addressby notifying the other party of the change of address.

Any notice sentby mail in the mannerprescribed by this paragraphshall be deemed to have been receivedonthedatenotedonthereturnreceiptor five (5) daysfollowingthedateof deposit, whichever is earlier.

COUNTY
Napa County Executive Officer
1195 Third Street, Suite 310
Napa, California 94559

PARTICIPANT
Napa Riverfront LLC
Atm: Matt Connelly
100W. CuttingBlvd.

Richmond, California 94804

18. Amendment/ Modification.

Exceptasspecificallyprovidedherein, thisAgreementmaybemodifiedor amendedonlyin writing and with the prior written consent of both parties. aUxW15� R( W� eRFd11p,� Pi� e, aea(: Av� l� ] O
Exhibit 1, 1- 1 and 1-2, Page xi
ATTACHMENT 1

J9. Interpretation; Venue.
a) Interpretation. The headingsused herein are for referenceonly. The terns of the Agreement areset out in the textunder theheadings. This Agreementshall be governedby the laws of the State of California without regard to the choice of law or conflicts. b) Venue. This Agreement is madein Nape County, California. The venue for any legal actionin slatecourtfiledby eitherpartytothisAgreementforthepurposeof interpretingOr enforcingmyprovisionofthisAgreementshallbeintheSuperiorCourtofCalifornia, Countyof Napa, aunifiedcourt. Thevenueforanylegalactionin federalcourtfiledbyeitherpartytothis Agreementforthepurposeof interpretingor enforcinganyprovisionof thisAgreementlying within thejurisdiction of the federal courts shall be the Northern District of California_ The appropriate venue for arbitration, mediation or similar legal proceedings under this Agreement shall beNapaCounty, California; however, nothingin thissentenceshallobligateeitherparryto submit to mediationor arbitrationanydisputearisingcoderthisAgreement.

20. Compliance with Laws.

Except asto thosemattersthatare the responsibility of the COUNTY, PARTICIPANT shall, at PARTICIPANT' s solecostandexpense, complywithandshallcausemy of itsmanagers, employees or contractorsto comply with all federal, state, county, municipal and other government statutes, laws, rules, orders, regulationsandordinancesaffectingthePropertyandtheParking Structure, the use thereof, or wustruction thereon, to the extent of PARTICIPANT" s use and operation of theParking Structure, excluding those which require the making of my structural or extraordinarychmges, whetherornotmy suchstatutes, laws, rules, orders, regulationsor ordinances which may be lrereaflerenactedwere within the contemplationof the parties at the time of executionof this Agreement, or involve a change of policy on thepart of the government body mactingthesame. Countyshallconcoct thefacilitytocomplywithall lawsincludingtheADA andshallkeepthepropertyincomplimcewiththeADA provisionstotheexpenditureoffunds whichwill bebilledproportionatelytotheCITY, COUNTY andPARTICIPANTS.

21. Access to Records/ Retention.

PARTICIPANT, orthedulyauthorizedrepresentativesthereof, shallhaveaccessto my books, documents, papersand recordsof COUNTY which are directly pertinentto the subject matterof thisAgreement (includingwithoutlimitation, recordsrelatedtoOperatingCosts) for thepurposeof making audit, examination, excerpts and transcriptions.

22. Authority, to Contract.

PARTICIPANT andCOUNTY eachwarrantherebythattheyarelegallypermittedand otherwise have the authority to enterinto and perform this Agreement.

23. Third Party Beneficiaries.

NothingcontainedinOrisAgreementshallbeconstruedtocreatemyrightsinthirdpartiesand The parties do not intend to cream such rights.

24. Attorney' s Fees.

In theeventthateitherpartycommenceslegalactionof my kindor charactertoeitherenforce the provisions of this Agreement or to obtain damagesfor breachthereof, theprevailing party in auraos� e. cw, r� rrrrx+� ti.� n. auc' i�� iaa 11
Exhibit I, 1- 1 and 1-2, Page xii
ATTACHMENT 1

such litigation shall be entitled to all costs and reasonableattorney's fees incurred in connection with such action.

25. Severability.

If anyprovisionofthisAgreemenSoranyportionthereof, isfoundbyanycourtofcompetent jurisdictiontobeunenforceableor invalidforanyreason, suchprovisionshallbescvcrableand shallnotin anywayimpairtheenforceabilityof anyotherprovisionof thisAgreement.

26. Entirety of Contract.

This Agreement constitutesthe entire agreementbetween thepanics relating to the subject of this Agreement and supersedes all previous agreements, promises, representations, understandings and negotiations, whether written or oral, among the parties with respectto the subject matter hereof.

IN WITNESS WHEREOF, this Agreement was executedby the partieshereto as of the dale first above written.

NAPA R VERFRONT LLC
A Californiahmiledliabilitycompany
By:CbaooclLumberCo. aCaliforniacorporation,
ltss
Managing Mmber
Massimo DeSimoni, Chairman

PARTICIPANT'
COUNTY OF NAPA, a political subdivision of
the State of California
By41gSE�
j� lG� E[CN_1f
HAROLD MOSKOWITE, Chair of the Board of
Supervisors
COUNTY"
ATTEST:

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ATTACHMENT 1

EXHIBIT" A"

GRAPHIC DESCRIPTION OF THE PROPERTY
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EXHIBIT - B-

LEGAL DESCRIPTION OF PROPERTY
The projectareacomdoris definedby alineof demarcationdrawnparalleltothesoutheasterlyline of the parcelof land described in the Grant Deed filed January 15, 2003 and recorded as Document No. 2003-0002112in theoffice of the Recorder of Napa County, California and 20 feet from the southeasterlyface of the Napa County Hall of Justice Building. Said project demarcation line extends to thenortheasterlyand southwesterly lines of the above mentionedparcel and is onset by aparallelline 120.5 feetto thesoutheastalsoboundedbytheextendednortheasterlyand southwesterlylinesof theabovementionedparcel.

The above project area comprises 50, 614 square feet or 1.16 acres. v>, aostecw, wec. nn,,. w. ar�.� ma, o 14
Exhibit 1, 1- 1and 1-2, Page xv
ATTACHMENT 1

EXHIBIT " C"

DIAGRAM OF PARKING STRUCTURE SETTING FORTH NUMBER AND LOCATION OF COUNTY, CITY. PARTICIPANT, AND OTHER PARTICIPANT PARKING SPACES A AM mNw+ YAFgMG SfRIK U
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ESTIMATED TOTAL COST/ PROIECT BUDGET WORKSHEET AS OF 12/ 18/ 16 Item Amount
Construction
ConstructionContingency
Watry (County's Arcbitect)
CountyProject & ConstructionMgmL
Utility Fees, Inspections, Labor Compliance, & Permits
County Public Works Administration
Grand Total
20 Exhibit], 1- I and 1-2, Page xxi
11,960, 000
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520, 000
440. 000
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ATTACHMENT 1

NAPA COUNTY AGREEMENT NO. / 7 /-�✓

PARKING GARAGE PRIVATE PARTICIPATION AGREEMENT
THIS PARJaNG GARAGE PRIVATE PARTICIPATION AGREEMENT(" AgreemenC� ismadeandenteredintoasof this9thdayof January, 2007, ("CommencementDate") by and between the COUNTY OF NAPA, a political subdivision of the State of California, hereinafter referredtoas "COUNTY', andNAPA MILL, LLC whosemailingaddressis500Main Street, Napa, California 94559, heremafler referred to os " PAR HC1PANT."

RECITALS
WHEREAS, COUNTY plans to construct a four level parking structure ("Parking Structure") located at the COUNTY superblock siteborderedby Main, Fifih, Coombs andThird Sheers in Napa ("Property") agraphicdescriptionof whichisdepictedin Exhibit "A" andalegaldescription of which is attachedhereto asExhibit " S" both incorporatedherein by referencewhich is anticipatedto accommodateapproximately four hundred sixty-six (466) spacesand cost approximatelyFifteenMillion Seventy -FiveThousandTwo HundredDollars (315,075,200) to construct. A diagram of the Parking Structure which setsforth the anticipatednumber and location of the PARTICIPANT, COUNTY and CITY Parking Spaces andother participantparking spaces, based on tentative plan subject to change through the design build process, is attached hereto and mcorpomted herein as Exhibit " C'; and
WHEREAS, COUNTY anticipatesusingthedesign -buildprocessin ordertocompletethe design and construction of theParking Structure, with an anticipatedcontractaward dateof Spring of 2007, and an anticipated completion of construction in Ilia summer of 2D08; and WHEREAS, COUNTY plans to reserve approximatelyeighty-five (85) parking spaceson the fourth level of the Parking Structure to be available for the soleuse of COUNTY vehicles and have one hundred fifteen ( 115) non -reserved parking spaceson the second level of the Parking Structure for employees and visitors; and
WHEREAS, COUNTY hasenteredinto Napa County AgreementNo. 6372 with the City of Napa ("CITY') by whichCITY hasagreedtoparticipatein fundingaportionof theParking Structurein returnfor acertainnumberof parkingasdesignatedin Exhibit "C" referencedabove; and
WHEREAS, in order to optimize the utilization of the Property for theParking Structure.

COUNTY anticipatesentering into Parking GarageParticipation Agreements with up to three owners of property nearthe Parking Structure, by which theCOUNTY may license up to approximatelyonehundredthirty (130) parkingspacesforusebysuchlicensees (including PARTICIPANT and or its agents, employees, contractors, licensees, assignees, sublessees, transferees, representatives, guests, customers, invitees, or visitors). Such spaces are in addition to theCOUNTY andCITY parkingspacesreferredtoin thethirdandfourthrecitalsabove; and cNJV1p5YLLlASp+➢}�� naraMia �
Exhibit 1, 1- 1 and 1-2, Page xxii
ATTACHMENT 1

WHEREAS, PARTICIPANT desiresto purchasea license for the useof approximately forty-six 46) parkingspacesin theParkingStructurebasedonthetermsandconditionssetforthin this Agreement.

TERMS
NOW, THEREFORE, The parties agree as follows:

1. Contribution for Licensing Parking Spaces.
a) PARTICIPANT shall make available approximately One Million Five Hundred Dollars 1,500, 000) to the COUNTY for licensing certainparking spacesw more particularly described herein within thirty (30) days afterexecution of this Agreement. The estimatedtotal cost of the ParkingStructureisFifteenMillion Seventy -FiveThousandTwo HundredDollars (SI 5,075,200) Estimated Total Cost") and is set forth in mom detail in Exhibit " D" attached hereto and incorporatedbyreferenceherein. Theestimatedcostperparkingspace, basedonanestimatedfour hundredsixty-six (466) spacesis Thirly-Two ThousandThreeHundredFiftyDollars (532,350).

The actual cost of the Parking Structure shall be the amountof the accepteddesign build proposal received for the Parking Structure plus the combined estimatedThree Million One Hundred Fifteen ThousandTwo HundredDollars (53,115,200) costsforthefollowingitems (tobedetermined exactlyandsubjectto adjustmentafterconstructionof theParkingStructureis complete):
construction contingency; County architect; County project and constructionmanagement; utility fem, inspections, labor compliance andpermits; and County Public Works administration ("Actual Cost'). The Actual Cost divided by the totalnumber of parking spaces (466) equals the cost per parkingspace. Thecostperperkingspacemultipliedby thenumberof ParticipantParkingSpaces forty-six (46) equalstheactualParticipantcontribution ("ActualParticipantContnbution'�. The Actual Participant Contribution shall be in the form of a letter of credit or equivalent financial instrument, includingbutnotlimitedto acertificateof deposit, in aformreasonablysuitabletothe COUNTY. COUNTY shall have the right to draw upon the fords in the letter of credit in incrementsof uptoFiveHundredThousandDollars ($500,000) asneededfortheconstructionof the Pending Structure; provided however, thatCOUNTY shall draw upon thefunds provided by COUNTY, CITY, and PARTICIPANT only after COUNTY has executeda construction contract and construction of theParking Structure has commenced. COUNTY shall license approximately forty-six (46) parkingspaces ("PARTICIPANT ParkingSpaces'DtoPARTICIPANT in accordance with the terms of this Agreement; provided, however, COUNTY' s obligations may be terminatedin accordance with Paragraph 14. The location of the PARTICIPANT Parking Spaces hos been determinedbyCOUNTY in consultationwiththePARTICIPANT. A diagramof theParking Structure sets forth the number and location of theCOUNTY, CITY, and PARTICIPANT Parking Spacesandotherparticipantparkingin Exhibit "C" referencedabove. In theeventthatanyof the one hundred filleen ( 115) non -reservedparking spacesreferredto in the third recital above are later converted to reservedspacesby COUNTY, PARTICIPANT Parking Spacesshall be relocated to thesecondlevelof theParkingStructure.
b) COUNTY shallkeepPARTICIPANT regularlyinformedregardingthestatusof designof the Perking Structure, PARTICIPANT may submit to COUNTY suggestedmodifications to the design, and COUNTY shall reasonablyconsider any such suggestionssubmittedby PARTICIPANT.
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Exhibit 1, 1- 1 and 1-2, Page xxiii
ATTACHMENT 1

c) Afterdesign -buildbidsarereceivedby COUNTY, COUNTY shallprovidePARTICIPANT writtennotice ("COUNTY Notice") astotheActualTotalCostof theParkingStmeture (asdefined above), andthecostperparkingspace, andwhetherCOUNTY hassufficientfundsavailableto constructaParkingStructurewhichincludesthePARTICIPANT ParkingSpaces. If theCOUNTY Notice indicatesthat
i) thecostperparkingspaceisThirtyThreeThousandDollars ($33,000) orless, COUNTY andPARTICIPANT shall meetand confer in a good fcah effort to negotiatea modificationtothisAgreementbywhicheitherPARTICIPANT' s Contributionisdecreased, or the numberof PARTICIPANT ParkingSpacesisincreased; or
ii) Thecost per parking spaceis greaterthanThirty Three Thousand Dollars (533,000), thenPARTICIPANT mayeithernegotiateamodificationtothisAgreementwiththeCOUNTY regardingtheActualPARTICIPANT' sContributionandthenumberof PARTICIPANT' sParking Spaces, orPARTICIPANT mayterminateitsobligationsunderthisAgreementbyprovidingwritten notice to COUNTY within thirty (30) days following receiptof the COUNTY Notice ( in which eventtheCOUNTY shallnotdrawuponanyof PARTICIPANT' ssourceof funds, andthe COUNTY shall execute and deliver to PARTICIPANT and the issuer of the letter of credit such documentationasis reasonablynecessaryto cancel and terminatethesame within 30 days of PARTICIPANT' s notice of termination).

Within sixty (60) daysfollowingreceiptof theCOUNTY Notice, exceptin theeven) of PARTICIPANT" s termination of this Agreement pursuant to Section I (c)( ii) above, PARTICIPANT and COUNTY shall executeanamendmentto this Agreement indicating the PARTICIPANT' s totalContributionandthetotalnumberof Participant'sParkingSpacesbasedon the terns of this Section I (c).

2. Term of the Agreement.

The termof this Agreement shall commenceon the dateof executionof this Agreement and shallbeforatermof fifty-five (55) yearsunlessterminatedearlierin accordancewithParagraph14 Termination for Cause), except that the obligations of the parties under Paragraph 13 Indemnification) shall continue in full force and effect aftersaid expiration dateor early termination dalein relation to actsor omissions occurring prior to such dates.

3. Damage or Destruction of Parking Structure.
a) If theParkingStructureisdamagedordestroyedby acasualtyorsimilareventthatresultsin areductionofParkingRights, andlessthanfifty-five (55) yearshaveelapsedfromthe Commencement Date, then the COUNTY shall make good faith efforts to repair or replace the ParkingStructureontheProperty, providedtheCOUNTY hassufficientfundsfortherepairor replacementfrominsuranceproceedsor fromathirdpartysourceof funds. COUNTY represents that it participatesin a self-insuranceprogram asfurther described in Paragraph 12below. b) If theParkingStructureis damagedordestroyedbyacasualtyorsimilareventandfifty-five 55) or more years have elapsed since the Commencement Date, the COUNTY shall not be obligated to replace the Parking Stmctrue.
c) Withinonehundredtwenty (120) daysfollowingthedamageordestructionof theParking Structure describedin subparagraph (a), the COUNTY shall notify PARTICIPANT as to whetherit will replacetheParkingStructureontheProperty, orwhetherit lackssufficientfundsfortherepair or replacementthereof. U theCOUNTY does not elect to repair or replace the Parkmg Structureon theProperly, eitherpartymaytetromatethisAgreement, in whicheventtheCOUNTY shall a0 rxaosac' w� vrrc„ v+m•:n�o e«
Exhibit 1. 1- 1 and 1-2, Page xxiv
ATTACHMENT 1

reimburse PARTICIPANT to the extentthatPARTICIPANT did not realize the benefits of its Contributionforthefrilltermof thisAgreement. By wayof example, if PARTICIPANT contributed OneMillion Dollars ($ 3,000,000), and the Parking Structure was damagedor destroyed twenty-two (22) yearsintothefifty-five (55) yeartermandtheCOUNTYelectednottorepairor replace thestructure, PARTICIPANT would be entitled to a Six Hundred Thousand Dollars 5600,000) reimbursementof itsContribution, representingsixtypercent (60%) of its original contribution, batedontheunavailabilityof ParlangRightsfor theremainingthirty-three (33) years, or sixtypercent (W16)) of theinitialtermof thisAgreement. d) IftheParkingStructureisdamagedbyacasualtyorsimilarevent, duringtheperiodin whichtheParkingRightsarereducedorunavailable, theCOUNTYshallreimburse PARTICIPANT on a pro -rata basis basedon a calculation of the PARTICIPANT' s cost per day for suchParkingRightsgiventhesizeoftheContributionandtermoftheAgreement. Suchrefund shallbethePARTICIPANT'ssoleremedyforthereductionorlackofavailabilityoftheparking providedbytheParkingRights.
e) Afterfifty-five (55) yearshaveelapsedsincetheCommencementDate, COUNTYinitssole discretionmaydecidetodiscontinuetheuseofthePropertyforaParkingStructure. Insuchcase, COUNTY shall provide PARTICIPANT one hundred twenty (120) days notice prior to the expiration dateof the Agreement. If after fifty-five (55) yearshave elapsedsince the Commeamment Date, and COUNTY still desiresto operatethe Parking Structure, COUNTY and PARTICIPANT agree to negotiate in good faith an extension of this Agreement under the same terns and conditions.

4. License for Parking Rights.
a) "PariangRights" shallmeanPARTICIPANT'sexclusivetighttouseofonestimatedforty- six (46) spaces, whichshallhemorespecificallydeterminedpursuanttothecalculationsbasedon theActualCostof theParkingStructuresetforthin SectionI aboveandshallbedesignatedas Reserved Spaces" for PARTICIPANT.
b) TheCOUNTY herebygreatstoPARTICIPANT ( includingPARTICIPANT" s agents, employees, contractors, licensees, assignees, sublessees, transferees, representatives, guests, customers, ummes, or visitors), a licenseto use for the terraof the Agreement the Parking Rights as definedaboveandmoreparticularlysetforthin thediagraminExhibit "C" attachedhereto. The COUNTY andPARTICIPANT agreetocooperatein goodfaithindeterminingamethodfor designatingtheReservedSpaces, andensuringthatPARTICIPANT'srightstosuchReserved Spaces we protectedand eafamed. COUNTY and PARTICIPANT may also mutually agreeto a change in thelocation of Participant Parking Spaces.

S. Opentions and Maintenance of Parking Structure.
a) OperatingCosts.
i) Costsfortheoperationsandmaintenanceof theParkingStructure ("Operating Costs") areestimatedatapproximatelyTwo HundredThousandDollars (5200,000) peryear. This amountshallbedeterminedwithmorespecificityin anOperationsandUseAgreementtobe enteredintoin thefutureamongCOUNTY, CITY, PARTICIPANT andotherparticipants. For purposes of this Agreement, OperatingCosts shall include commercially reasonableexpensesand costswhichCOUNTY shallpayorbecomeobligatedtopaybecauseof or in connectionwith the ownership, operation, repairand/ormaintenanceoftheParkingStructure, including, without limitation: (A) all maintenance, janitorial andsecurity costs; (B) costs for all materials, supplies and a�DE05{ a CW� PYr6v` ib� M�a doe
Exhibit 1, 1- 1and 1-2, Page xxv
ATTACHMENT 1

equipment; (C) costsof water, electricity, refusecollection, parkinglotsweeping, landscaping, and other utilities and servicesrelating to the Parking Structure; (D) all costs of alterationsor improvementstotheParkingStructuremadetoachievecompliancewithanyfederal, stateandlocal law including, withoutlimitation, theAmericanswithDisabilitiesAct (42U.S.C. Section12101el seq.) ("ADA"), or to reduceOperating Costs or improve the operatingefficiency of the Parking Structure, all of which costs will be amortized over the useful life of such alterations or improvementsasCOUNTY shallreasonablydetermine; (E) costsfor repairs, replacements, and general maintenanceof theParking Structure, but excluding any repairs or replacementspaid for out of insuranceproceedsor by other parties; (F) costs of maintaining machinery, equipment and directional signageor other markers, and (G) any insurancepremiums thatare specifically allocatabletoinsuringtheParkingStructure
OperatingCosts shall not include (A) capitalimprovements (except as otherwise provided above); (B) costsof special servicesrenderedto other privateparticipants (including PARTICIPANT) for which a special charge is made; ( C) atomeys' fees and other expenses incurred in connectionwiththeParkingStructureorenforcingrulesendregulationsfortheParking Structure; (D) depreciationor amortization, other thanas specifically emrnerated in thedefinition of OperatingCostsabove; (E) nonrecurringcostsincurredtoremedydefectsintheoriginal constmction of the Parking Structure; and (F) repairsor otherwork neededdue to fire, windstorms, orothercasualtyorcausetotheextentCOUNTY hasreceivedinsuranceproceedsforsuchrepairs or other work.
ii) PARTICIPANT shall pay to COUNTY, " PARTICIPANT' s Parking Percentage Share" of the Operating Costs on a bi- monthly basis commencingon the first day of the first month i
followingthecompletionof theconstructionof theParkingStructure. Forpurposesof this Agreement, "PARTICIPANT' s Parking PercentageShare" shall mean the number of spaces licensedtoPARTICIPANT foritsParkingRightspursuanttothisAgreementdividedby thetotal number of parking spacesin the Puking Structure. If the number of spacesin theParking Structure or PARTICIPANT' s Parking Rights are changed, then PARTICIPANT' s Parking Percentage Share shall be adjustedaccordingly.
iii) The COUNTY shall be responsible for " COUNTY' sPuking PercentageShare" of the Operating Costs. " COUNTY - s Parking PercentageShare" shall mean the number of spaces reservedfor theCOUNTY' susepursuanttoOtisAgreementdividedby thetotalnumberof parking spacesin theParking Structure. If the number of spacesin theParking Structure or the number of COUNTY' sreservedparkingspacesarechanged. thenCOUNTY' sParkingPercentageShareshall be adjustedaccordingly
iv) It is understoodamongthe partiesthat theCITY shall be responsible for a share of the Operating Costs to be determined, more specifically in a subsequentOperations and Use Agreement enteredinto amongthe COUNTY, CITY, PARTICIPANTS and other participants; provided however, that theextentof CITY' Sresponsibility for a shareof the Operating Costs m determined in the Operations and Use Agreement, shall have no effect on the calculation of PARTICIPANT' s operatingcostspursuantto Paragraph 5(a)(ii), above.. v) COUNTY shall also establisha reservefund in the amountof Thirty Thousand Dollars (530,000) annuallycomprisedof proportionalcontributionsfromCOUNTY, CTI -Y, PARTICIPANT and other participants ("Reserve Fund') for the duration of 0us Agreement for the preventive maintenance, periodic repair, replacement of components, and related improvements of the Parking Structure, which shall be contributedto proportionally by COUNTY, CITY, PARTICIPANT, and other participants. The Parties agreeto regularly negotiate and determine noaosuu- cw�, orrrr . w,�.ora; n du
Exhibit I, 1- 1and 1-2, Page xxvi
ATTACHMENT 1

necessaryadjustmentsto the amountof the Reserve Fund every five (5) years or more frequently as neededfor thedurationof thisAgreement. The CountyAuditor -Controllershallberesponsiblefor establishingandmaintainingtheReserveFundforthedurationof thisAgreement. vi) PARTICIPANT shall have theright to employ vendors and contractors for the operations of theParking Structure, including but not limited to valet operators. vii) Notwithstandinganytermsorprovisionsof thisParagraph5(a) tothecontrary, in the eventthattheCOUNTY chargesthepublictoparkin theParkingStructure ("PublicParking Fees'), the proceedsfrom such Public Parking Fees shall be used to pay the Operating Costs for the Parking Structure. To the extentthata portion of the OperatingCosts are paid with the proceedsof PublicParkingFees, theOperatingCostspayablebyCOUNTY, CITY, andPARTICIPANT pursuantto this Pwagmph 5(a) shall be offset such that each party shall only be responsible for their parking percentageshare of the remaining Operating Costs. b) Maintenance.
i) Followingcompletionof constructionof theParkingStructure, theCOUNTY shall maintain the Parking Structurein good condition and repair consistentwith customary maintenance practices. AnymaintenanceorimprovementworkperformedontheParkingStructureshallbe diligentlyperformedandcompletedin agood, workmanlikeandtimelymanner, andshallbe completed in such a manneras to return theParking Structureto no less than the some condition that it was in prior to the commencement of such maintenance and repair work. The COUNTY shallcoordinateandreasonablycooperatewiththePARTICIPANT in performingtherepairand maintenance obligations dews ed in this Agreement and shall give the PARTICIPANT reasonable noticepriortocommencinganyrepairormaintenancetotheParkingStructure. ii) AnyworkdoneontheParkingStructurebytheCOUNTY shallbeperformedin a manner which causesthe least interferencereasonablypossible, and reasonable stepsshall be taken by COUNTY to ensure thattheperformance of such maintenanceand repairs roes not adversely affect the PARTICIPANT.
iii) The parties to this Agreement shall be required to contribute to the cost of any maintenanceaspart of their respective obligations for Operating Costs, as described in Paragraph 5(a) above.

6. General Use Prohibitions.

PARTICIPANT and COUNTY agree that in connection with and to the extent of the PARTTCIPANTs and COUNTY' s useand operation of the Parking Structure, PARTICIPANT and COUNTY will not:
a) Create, cause, maintain or permit any nuisance in or about the Parking Structure; or b) Commit or suffer to becommitted any waste in or about the Parking Structure or the Property, or
c) KnowinglyallowtheParkingStructuretobeusedforanyunlawfulpurpose; or d) Permit undue accumulations of garbage, trash, rubbish or any other refuse in the Parking Structure; or _.
e) Cause or permit obnoxious odors to emanatefrom or be discharged in or from the Parking Structure; or
f) Create, cause, maintain or permitany noise or sound thatis objectionable due to intermittence, beat, frequency, shrillnessorloudness (excludingtheoccasionalnoisefromanerrant car alarm); or
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Exhibit 1, 1- 1 and 1-2, Page xxvii
ATTACHMENT 1

g) Create, reuse, maintain, orpermitcreationof anydust, dirt, orfly ashin excessive quantities: or
h) Create, cause, maintainorpermitanymotorvehicleservicing, includingbutmollimitedto the washing of cars, or repair shop thatprovides any such servicing-

7. ervicing

7. Security; Enforcement.

The regularhoursof operationof thePerkingStructurebyCOUNTY shallbesetforthwith more specificity in an Operations and Use Agreement to be enteredinto among COUNTY, CITY, PARTICIPANT andotherparticipantsin thefuture. TheCOUNTY shallprovidesecurityforthe Parking Structurefor certain hours of operation of the Parking Structure, which shall be substantially consistentwith Thelevel of service that COUNTY or CITY provides in other parking structuresin DowntownNaps; however, suchprovisionof secuntymaynotbefor theentire durationof theoperationalhoursof thePerkingStructurereferencedimmediatelyabove.

COUNTY will not provide security at other times even though the Parking Structure is being used for parking for public use At PARTIC TANTS sole cost, PARTICIPANT may provide additional securityduringhoursin whichtheCOUNTY is notprovidingsecurity. The PARTICIPANT shall coordinate any additional secunty it provides with the security the COUNTY provides and with security for otherparticipantsin similar parking participant agreements.

The COUNTY andPARTICIPANT agreetocooperatein goodfaithin determiningamethod fordesignatingtheReservedSpaces, andensuringthatPARTICIPANT' s rightsto suchReserved Spaces are protected and enforced.
g. Approvals of Transfers.

Transfer" means: any totalor partial sale, sublic<nse, assignmentor conveyance, or any trustor power, or any transferin any other modeor form, of or with respectto this Agreement, of the ownershipin theParkingRightsoranyinteresttherein, or anycontractor agreementtodoanyof the same.

Subject to the terns and conditions of this paragraph, PARTICIPANT shall have the right to Transfer its Parking Rights. Any Transfer not permitted by this paragraphshall be mill andvoid. In the event that PARTICIPANT dances toTransfer its Parking Rights, PARTICIPANT shall provide COUNTY andCITY withthirty (30) daysnoticeof anysuchTransfer, andsuchTransfershallbe subject to the COUNTY' s consent, which consent shall not be unreasonablywithheld, conditioned ordelayed. Notwithstandingtheforegoing, if eachof thefollowingconditionsaresatisfied, PARTICIPANT' sTransferof itsParkingRightsshallnotbesubjecttoCOUNTY' s consent:
a) The transferee enters into an assignment and assumption agreement with the PARTICIPANT pursuant to which the transferee agrees to undertake the obligations of PARTICIPANT under this Agreement;
b) The PARTICIPANT and the transferee execute and provide to the COUNTY documentation reasonably satisfactoryto the COUNTY of PARTICIPANT' s assignmentof the rights and delegation of duties under this Agreement to the transferee; c) There is no uncured Event of PARTICIPANT Default under this Agreement', and d) Following any Transfer, PARTICIPANT must remain in compliance with the CITY' s parkingrequirements (assetforthin applicableusepermits, etc.) regardingthePARTICIPANT' s obligationtoprovideparkingfortheuseof itsproperty.

In additiontotheforegoingtermsandconditionsregardingthePARTICIPANPs rightsto Transferits ParkingRights, PARTICIPANT mayassignitsrightsunderthisAgreement, without B BL1 Pkrea , naMalda
Exhibit 1, 1- 1and 1-2, Page xxviii
ATTACHMENT 1

anyapprovalof COUNTY or CITY, toanyentitywhichis whollyownedby PARTICIPANT orby a parentof a PARTICIPANT, or my entity in which PARTICIPANT or a parentof PARTICIPANT has an equityinterestand is a generalor managing partnerhnember, and shall include anynew or existingentityso longassuchentityisowned, controlledormanagedby (orundercommoncontrol with) PARTICIPANT. No assignmentbyPARTICIPANT shallresultin PARTICIPANT being relemcd from anyobligations of PARTICIPANT to COUNTY under this Agreement.

9. Prohibited Encumbrances.

PARTICIPANT shall not have the right to place or createany mortgageor deed of trust upon the Parking Rights or the Property, or place or suffer to beplaced upon the Parking Rights or Propertyormylien, levyor attachmentorotherencumbrance. Notwithstandingtheforegoing, in connectionwithobtainingfinancingrelatedtoPARTICIPANT' s realproperty, PARTICIPANT may assignits Parking Rights to a lender asadditional security for the financing of such real property. However, anysuchfinancingandassignmentfarsecuritypurposesshallrequirethe lender to besubjectto all tams of this Agreement as of the dateof foreclosure (i.e, all obligations and restrictionsrelatedto PARTICIPANTs use of the Parting Structure).

Any suchmortgage, lien, levyorattachmentorotherencumbrancesprohibitedbythisparagraph shallbedecmedtobeaviolationof thiscovenanton thedateof itsexecutionorfiling of record, regardless of whether or when it is foreclosed or otherwise enforced, unless PARTICIPANT shall, within sixty (60) daysof suchdateof executionorfilingof record, removeanysuchmortgage, lien, levy or attachmentor other encumbrances.

10. RJghis of Lenders.

If PARTICIPANT provides COUNTY with thename of rimylender to whom PARTICIPANT has made a Transfer, COUNTY shall give such lendernotice of any default or failure by PARTICIPANT under this Agreement and such lender shall have the right to ewe such default or failurewithinninety (90) daysfollowingreceiptof suchnoticeof PARTICIPANT' sdefault.

11. Transfer by the COUNTY.

At my time and without the consentof thePARTICIPANT, the COUNTY may Transfer its rights andobligations under flus Agreement so long as the transferceowns or has the right to operatetheParking Structure. A transfereeof COUNTY' s rights and obligations under this Agreement shall agreein writing to perforin all obligations of the COUNTY pursuant to the terms of thisAgreement, includingwithoutlimitation, theobligationtomaintaininsuranceontheParking Structure at suchlevels asare reasonableand customaryfor such property and improvements.

12. Insurance.

COUNTY is a participant in a self-insurance program with casualty and excess liability coverage limits up toTwenty -Five Million Dollars ( 525,000,000) to cover any third -party claims for damagesagainsttheCOUNTY resultingfromtheoperationsof theParkingStructure- The COUNTY alsomaintainsfust -partypropertyinsurancecoveragein theamountof Seventy -Five Million Dollars (S75,DD0,000) which includes earthquakeand flood liability to cover any such potential damageto theParking Structure. The PARTICIPANT shall be named as an additional insured for suchpolicies. COUNTY shall maintain the abovementioned insurance for theduration of this Agreement.

Ruxaosatw. raen,CAMx Maas
Exhibit 1, I- 1 and 1-2, Page xxix
ATTACHMENT 1

However, in theeventPARTICIPANT hiresanyvendororcontractortoperformanyservicein connectionwiththeoperationsof theParkingStructureincludingbutnotlimitedtovaletservices, PARTICIPANT shall, or requireits vendor or contractor to obtain liability insurancewith a minimumof OneMillion Dollars ($1,000,000) of liabilitycoveragetocoversuchvendorsor contractors. Such coverage shall be subject to the reasonable approval of COUNTY' s Risk Manager and verified by certificatesof coverage. PARTICIPANT shall be named asan additional insured for anysuch vendoror contractor insurance coverage.

13. Fold Harmless/ Defense/ ludemaiftcation.
a) Tothefullextentpermittedbylaw, PARTICIPANTshallholdharmless, defendatitsown expense, andindemnifyCOUNTY andtheofficers, agents, employeesandvolunteersof COUNTY fromanyandall liability, claims, losses, damagesorexpenses, includingreasonableattomey's fees, forpersonalinjury (includingdeath) ordamagetoproperty, arisingfromall actsoromissionsof PARTICIPANT a its officers, agents, employees, volunteers, contractors and sub -contractors to renderingservicesunderthisAgreement, excluding, however, suchliability, claims, losses, damagesor expensesarising from the negligence or willful actsof COUNTY or its officers, agents, employeesorvolunteers. Eachpartyshallnotifytheotherpartyimmediatelyinwritingof any claim or damage related to activities performed under this Agreement. The parties shall cooperate with eachother in the investigation and disposition of any claim arising out of the activities under thisAgreement, providingthatnothingshallrequireeitherpartytodiscloseanydocuments, records or communications that are protected under peer review privilege, attomey- client privilege, or attorney work product privilege.
b) To thefull extentpermittedbylaw, COUNTY shallholdharrrdess, defendruns own expense, andindemnify PARTICIPANT and the officers, agents, employees and volunteersof PARTICIPANT from any and all liability, claims, losses, damagesor expenses, including reasonableattorney's fees, forpersonalinjury (includingdeath) or damagetoproperty, ansingfrom all acts or omissions of COUNTY or its officers, agents, employees, volunteers, contractors and sub -contractorsin renderingservices under this Agreement, excluding, however, such liability, claims, losses, damagesor expensesarising from the negligenceor willful actsof PARTICIPANT orits officers, agents, employeesorvolunteers. Eachpartyshallnotifytheotherpartyimmediately in writing of any claim or damagerelated to activities performedunder this Agreement- The parties shall cooperatewith each other in theinvestigation and disposition of any claim arising out of the activities under this Agreement, providing thatnothing shall require eitherparty to disclose any documents, recordsor communications thatare protectedunder peer review privilege, attorney- client privilege, or attorney work product privilege.

14. Termination for Cause.

If eitherpartyshallbein DefaultunderthisAgreementandfailtocuresuchDefaultwithin thirty (30) daysof receiptof writtennoticefromtheotherpartydescribingthenamreof theDefault, thenon -defaultingpartymay, in additiontoanyotherremediesitmayhave, terminatethis Agreementby giving thirty (30) daysprior written notice to the defaulting party in the manner set forth in Paragraph 17 (Notices); provided, however, that if the nature of such Default is such that thesameiscurablebutcannotreasonablybecuredwithinsuchthirty (30) dayperiod, apartyshall notbedeemedtobein Defaultif suchpartyshallwithinsuchperiodcommencesuchcure, provide reasonablewritten assuranceof due performance and thereafierdiligently and continually prosecute thesametocompletion. COUNTY herebyauthorizestheNapaCountyExecutiveOfficertomake r�o�eose cwoyrrr[ A, vsa rill J. 0
Exhibit I. 1- 1and 1-2. Page xxx
ATTACHMENT 1

all decisions and take all actions required under this paragraph to terminale this Agreement on behalf of COUNTY for cause.

15. Default.
a) Thefollowingshallconstitutea "Default' by PARTICIPANT underthisAgreement: a failure by PARTICIPANT to observeand perform any material provision of this Agreement to be observedor performedby PARTICIPANT, where such failure continues for sixty (60) days after notice thercof from COUNTY; provided, however, that if the nature of the default is such that the sameiscurablebutcannotreasonablybecuredwithinsuchsixty (60) dayperiod PARTICIPANT shall not be deemed to be in default if PARTICIPANT shall within such period commence with the cure, providereasonablewrittenassuranceof dueperformanceandthereafterdiligentlyand continually prosecute the some to completion.
b) The following shall constitutea "Default" by COUNTY under this Agreement: a failure by COUNTY toobserveandperformanymaterialprovisionof thisAgreementtobeobservedor performedbyCOUNTY, wheresuchfailurecontinuesforsixty (60) daysalternoticethereoffrom PARTICIPANT; provided, however, that if the nature of default is such that the same is curable butcannotreasonablybecuredwithinsuchsixty (60) dayperiod, COUNTY shallnotbedeemedto be in default if COUNTY shall within such period commence with the cure, provide reasonable written assuranceof due performance and thereafterdiligently and continually prosecute the same to completion.

16. No Waiver.

The waiver by eitherparty of anybreach or violation of any requirementof this Agreement shall rot be deemedto be a waiver of any such breachin the future, or of thebreach of any otber requirement of this AgrmmenL

17. Notices.

All noticesrequiredorauthorizedby thisAgreementshallbein writingandshallbedeliveredin person or by deposit in the United States mail, by certified mail, postageprepaid, relum receipt requested. Any mailed notice, demand, request, consent, approval or communication thateither partydesirestogivetheotherpartyshallbeaddressedtotheotherpartyattheaddresssetforth below. Either party may change its addressby notifying the other party of the change of address.

Any notice sentby mail in the manner prescribedby this paragraphshall be dcerned to have barn receivedon thedatenotedonthereturnreceiptorfive (5) daysfollowingthedateof deposit, whichever is earlier.

COUNTY
Napa County Executive Officer
1195 Third Street, Suite 310
Napa, California 94559

PARTICIPANT
Napa Mill, LLC
Attn: Harry Price
500 Main Street
Napa, California 94559

18. Amendmen0lodifrcation.

Except asspecifically provided herein, thisAgreement may be modified or amendedonly in writing and with theprior wntien consent of both parties. ccWBOSB{ 1Ha K,, C tierWA0. 10
Exhibit 1, 1- 1 and 1-2, Page xxxi
ATTACHMENT 1

I9. Interpretation; Venue.
a) Interpretation. The headingsusedhereinareforreferenceonly. Thetermsof the Agreement areset out in the text under the headings. This Agreement shall begovernedby the laws of the State of California without regard to the choice of law or conflicts. b) Venue. ThisAgreementismadein NapaCounty, Califomia. Thevenueforanylegal actionin slatecourtfiledbyeitherpartytothisAgreementfor thepurposeof interpretingor enforcinganyprevisionof thisAgreementshallbein theSuperiorCourtof California, Countyof Napa, aunifiedcourt. The venueforanylegalactionin federalcourtfiledbyeitherpartytothis Agreementforthepurposeof interpretingor enforcinganyprovisionof thisAgreementlying within the jurisdiction of the federal courts shall be the Northern District of California. The appropriate venue for arbitration, mediation or similar legal proceedings under this Agreement shall be Napa Counry, California; however, nothing in this sentenceshall obligate eitherparty to submit to mediation or arbitration any dispute arising under this Agreement -

20. Compliance avith Laws.

Exceptastothosemattersthataretheresponsibilityof theCOUNTY, PARTICIPANT shall, at PARTICIPANT' s sole cost and expense, comply with and shall cause any of its managers, employees or contractorsto comply with all federal, state, county, municipal and other government statutes, laws, rules, orders, regulationsand ordinances affecting the Property and theParking Structure, the use thereof, or construction thereon, to the extent of PARTICIPANT' s use and operation of the Parking Structure, excluding those which requirethe making of any structural or extraordinarychanges, whetherornotanysuchstatutes, laws, rules, orders, regulationsor ordinances which may be hereafterenactedwere within the contemplationof the partiesat the time of execution of this Agreement, or involve a changeof policy on the part of thegovernmentbody enacting (liesame. Countyshallconstructthefacilitytocomplywithall lawsincludingtheADA and shall keep theproperty in compliance with the ADA provisions to theexpenditureof funds whichwill hebilledproportionatelytotheCITY, COUNTY andPARTICIPANTS.

21. Access to Records/ Retention.

PARTICIPANT, or the duly authorized representativesthereof, shall haveaccessto any books, documents, papersandrecords of COUNTY which are directly pertinent to thesubject matterof thisAgreement (includingwithoutlimitation, recordsrelatedtoOperatingCosts) forthepurposeof making audit. examination, excerpts and transcriptions.

22. Authority to Contract.

PARTICIPANT andCOUNTY eachwarrantherebythattheyarelegallypermittedand otherwise have the authority to enterinto and perform this Agreement.

23. Third Party Beneficiaries.

Nothing containedin this Agreement shall be construedto createany rights in third parties and the parties do not intend to create such rights.

24. Attorney' s Fees.

In theeventthateitherpartycommenceslegalactionof anykindorcharactertoeitherenforce the provisions of this Agreement or to obtain damagesfor breach thereof, theprevailing party in a, IMDOSsDCNar^ gQNt' Wlq a a I
Exhibit 1, I- 1 and 1-2. Page xxxil
ATTACHMENT 1

such litigation shall be entitled to all costs and reasonable attorneys fees incurred in connection with such action.

25. Severability.

If my provision of this Agreement, or any portion thereof, is found by any court of competent jurisdiction to be unenforceable or invalid for any reason, such provision shall be severableand shallnotin anywayimpairtheenforceabilityof anyotherprovisionof thisAgreement.

26. Entirety of Contract.

This Agreement constitutesthe entireagreementbetweenthe partiesrelating to the subject of this Agreement and supersedes all previous agreements, promises, representations, understandings and negotiations, whether written or oral, among the parties with respect to the subject matter hereof.

IN WITNESS WHEREOF, thisAgreementwasexecutedby thepartiesheretoasof thedate first above written.

NAPA MILL, LLC, by its managing member, Napa
Mill Development Company, a California Limited
Partnership
HarryT. Price, t'kntralPartner

PARTICIPANT'
COUNTY OF NAPA, a political subdivision of
the State of California
By29 o � lC-VM(yyc
HAROLD MOSKOWITE, Chair of the Board of
Supervisors
99fi all"
ATTEST:

Cledc of the
V 0 11 APPROVED BY THE NAPA COUNTY
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Exhibit 1, 1- 1 and 1-2, Page xxxiii
ATTACHMENT 1

EXHIBIT " A'

GRAPHIC DESCRIPTION OF THE PROPERTY
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PLAT OF PROJECT AREA
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Exhibit I. 1- 1 and 1-2, Page xxxiv
ATTACHMENT 1

EXHIBIT " B"

LEGAL DESCRIPTION OF PROPERTY
The projectareacorridoris definedbya lineof demarcationdrawnparalleltothesoutheasterlyline of the parcelof land described in the Grant Dad filed January 15, 2003 and recordedas Document No. 2003-0002112in the office of the Recorder of Napa County, California and 20 feet from the southeasterlyfaceof theNapaCountyHall of JusticeBuilding Saidprojectdemarcationline extendstothenortheasterlyand southwesterlylinesof theabovementionedparcelandis offsetby aparallelIme120.5feelto thesoutheastalsoboundedbytheextendednorthcaslerlyand southwesterly lines of the above mentionedparcel.

The above project area comprises 50,614 square feel or 1.16 acres.

Exhibit 1, 1- 1 and 1-2, Page xxxv
ATTACHMENT 1

EXHIBIT " C"

DIAGRAM OF PARKING STRUCTURE SETTING FORTH NUMBER AND LOCATION OF

COUNTY, CITY, PARTICIPANT, AND OTHER PARTICIPANT PARKING SPACES Avr��' nD oorn� n of wnm+ c smu� u�
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Exhibit 1, 1- 1and 1-2, Page xxxvi
ATTACHMENT 1

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ci1U� BO5� BL1NaWPkL + P' M� E doc 17
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Exhibit 1, 1- 1 and 1-2, Page xxxix
ATTACHMENT 1

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E) WHIT " D"
ESTIMATED TOTAL COSTIPROIECT BUDGET WORKSHEET AS OF 12/ 18/ 16 Item Amount
Construction
ConstructionContingency
Watry (County'sArcbitect)
CountyProject & ConstructionMgmt.

Utility Fees, Inspections, Labor Compliance, & Permits
County Public Works Administration
Grand Total
c�maosstw� rk� r < wy. ud�< 20
Exhibit 1, 1-1 and 1-2, Page xli
11, 960, 000
1,196, 000
469, 200
490, 000
520, 000
440, 000
15, 075, 200
ATTACHMENT 1

NAPA COUNTY AGREEMENT NO.

PARKING GARAGE PRIVATE PARTICIPATION AGREEMENT
THIS PARKING GAIIAGE PRIVATE PARTICIPATION AGREEMENT (" Agreement') is madeandenteredintoasof this9thdayof January, 2007, ("CommencementDate') byand between the COUNTY OF NAPA. a political subdivision of the State of Califorma, hereinafter referad io as "COUNTY". and ANDREA SCHRADER whose mailing addressis P.O. Box 388.

Napa. California 94559, hereinafter referred to as " PARTICIPANT."

RECITALS
WHEREAS, COUNTY planstocons(mctafourlevelparkingstructure ("ParkingStructure') located at the COUNTY superblock site bordered by Main, Fifth, Coombs and Third Streetsin Napa ("Property') agraphicdescriptionof whichisdepictedinExhibit "A" andalegaldescription of which is attachedheretoas Exhibit " B" both incorporated herein by referencewhich is anticipatedtoaccommodateapproximatelyfourhundredsixty-six (466) spacesandcost approximatelyFifteenMillion Seventy -FiveThousandTwo HundredDollars ($15.075,200) to constrict. A diagramof theParkingStructurewhichsetsforththeanticipatednumberandlocation of thePARTICIPANT, COUNTY andCITY ParkingSpacesandotherparticipantparkingspaces, based on tentative plan subject to change through the design build process, is attached hereto and incorporated herein as Exhibit " C'; and
AIREREAS, COUNTY anticipatesusing thedesign -build process in orderto completethe designandconstructionof theParkingStructure, withananticipatedcontractawarddateof Spring of 2007, and an anticipated completion of construction in the surromer of 2008; and WHEREAS, COUNTY plans to reserveapproximately eighty-five ( 85) parking spaceson the fourthlevelof theParkingStructuretobeavailableforthesoleuseof COUNTY vehiclesandhave onehundredfifteen (115) non -reservedparkingspacesonthesecondlevelof theParkingStructure for employees and visitors; and
WHEREAS, COUNTY hasenteredinto Napa County Agreement No. 6372 with the City of Napa ("CITY') bywhichCITY hasagreedtoparticipatein fundingaportionof theParking Structurein returnforacertainnumberof parkingasdesignatedin Exhibit "C' referencedabove:
and
WHEREAS, in orderto optimizetheutilizationof thePropertyfortheParkingStructure, COUNTY anticipatesenteringintoParkingGarageParticipationAgreementswithuptoIluee ownersof propertyneartheParkingStructure, bywhichtheCOUNTY maylicenseupto approximatelyonehundredthirty (130) parkingspacesforusebysuchlicensees (including PARTICIPANT and or its agents, employees, contractors. licensees, assignees, sublessees. trani representatives. guests, customers, invitees, or visitors). Such spacesare in addition to theCOUNTY andCITY parkingspacesreferredtoin thethirdandfourthrecitalsabove; and aaVTB051B-C1Notwn.k'Ca,r�Salvoh Joy
Exhibit 1, 1- 1 and 1-2, Page xlii
ATTACHMENT 1

WHEREAS, PARTICIPANT desirestopurchasealicensefortheuseof approximatelytwenty- eight (28) parkingspacesin theParkingStructurebasedonthetermsandconditionssetforthin this Agreement
TERMS
NOW, THEREFORE, The paries agree as follows

1. Contribution for Licensing Perking Spaces.
a) PARTICIPANT shall make available approximately Nine Hundred Thotsand Dollars 5900,000) to the COUNTY for licensing certain parking spacesasmore particularly described hereinwithinthirty (30) daysafterexecutionof thisAgreement. Theestimatedtotalcostof the ParkingStrucumeis FifteenMillion Seventy -FiveThousandTwo HundredDollars ($15,075,200) Estimated Total Cost') and is set forth in more detail in Exhibit " IY' anached hereto and incorporatedbyreferenceherein. Theestimatedcostperparkingspace, basedononestimatedfour hundredsixty -sits (466) spacesisThirty -Two ThousandThreeHundredFifty Dollars (332,350).

The actualcostof theParkingStructureshallbetheamountof theaccepteddesignbuildproposal receivedfortheParkingStructureplusthecombinedestimatedThreeMillion OneHundredFifteen ThousandTwo HundredDollars ($3,115,200) costsforthefollowingitems (to bedetermined exactlyandsubjecttoadjustmentafterconstructionof theParkingStructureiscomplete):
constructioncontingency; Countyarchitect, Countyprojectandconstructionmanagement; utility fees, inspections, labor compliance and permits; and County Public Works administration ("Actual Cost"). TheActualCostdividedbythetotalnumberof parkingspaces (466) equalsthecostper parkingspace. Thecostperparkingspacemultipliedbythenumberof ParticipantParkingSpaces twenty-eight (28) equals the actual Participant contribution ("Actual Participant Contribution").

The Actual Participant Contribution shall be in the form of a letterof credit or equivalent financial instrument, including but not limited to a certificate of deposit, in a form reasonably suitableto the COUNTY. COUNTY shall have the right to draw upon the funds in the letter of credit in incrementsofuptoThreeHundredThousandDollars (3300,000) asneededfor theconstructionof theParkingStructure; providedhowever, thatCOUNTY shalldrawuponthefundsprovidedby COUNTY, CITY, and PARTICIPANT only after COUNTY hasexecuteda construction contract andconstructionof theParkingStructurehascommenced. COUNTY shalllicenseapproximately twenty-eight (28) parking spaces ("PARTICIPANT Parking Spaces') to PARTICIPANT in accordancewiththetermsof thisAgreement; provided, however, COUNTY' s obligationsmaybe terminatedinaccordancewithParagraphM. The locationof thePARTICIPANT ParkingSpaces hasbeendeterminedby COUNTY in consultationwiththePARTICIPANT. A diagramof the Parking Structuresetsforth the number and location of the COUNTY, CITY, and PARTICIPANT ParkingSpacesandotherparticipantparkingin L-khibit "C" referencedabove. In theeventthatany of theonehundredfifteen (113) non -reservedparkingspacesreferredtoin thethirdrecitalabove arelaterconvertedtoreservedspacesbyCOUNTY, PARTICIPANT ParkingSpacesshallbe relocatedtothesecondlevelof theParkingStructure.
b) COUNTY shallkeepPARTICIPANT regularlyinformedregardingthestatusof designof the Parking Structure, PARTICIPANT may submit to COUNTY suggestedmodifications to the design, andCOUNTY shallreasonablyconsideranysuchsuggestionssubmittedby PARTICIPANT.
rmnosie< vaa� scdts.�. w ua
Exhibit 1, 1- 1 and 1-2, Page xliii
ATTACHMENT 1

c) Afier design -buildbidsarereceivedbyCOUNTY, COUNTY shallprovidePARTICIPANT vriten notice ("COUNTY Notice') asto the Actual Total Cost of the Parking Structure (as defined above), andthecostperparkingspace, andwhetherCOUNTY hassufficientfundsavailableto consmicla ParkingStructurewhichincludesthePARTICIPANT ParkingSpaces. If theCOUNTY Notice indicates that
t) thecostperparkingspaceisThirtyThreeThousandDollars ($33,000) orless, COUNTY and PARTICIPANT shall meet and confer in a good faith effort to negotiate a modificationtothisAgreementbywhicheitherPARTICIPANT' sContributionisdecreased, orthe number of PARTICIPANT Parking Spacesis increased; or
ii) thecostperparkingSpaceisgreaterthanThirtyThreeThousandDollars ($33,000), thenPARTICIPANT may eithernegotiatea modification to this Agreement with the COUNTY regardingtheActualPARTICIPANT' sContributionandthenumberof PARTICIPANT' sParking Spaces, or PARTICIPANT may terminale its obligations under this Agreement by providing written nonceto COUNTY withinthirty (30) daysfollowingreceiptof theCOUNTY Notice (in which eventtheCOUNTY shallnotdrawuponanyof PARTICIPANT' s sourceof foods, andthe COUNTY shall execute and deliver to PARTICIPANT and the issuer of the letter of credit such documentationasis reasonablynecessaryto cancelandterminulethesamewithin30daysof PARTICIPANT' s notice of termination).

Within sixty (60) days following receiptof the COUNTY Notice, except in the event of PARTICIPANT' s lemnination of this Agreement pursuant to Section I( e)( ii) above, PARTICIPANT andCOUNTY shallexecuteanamendmenttothisAgreementindicatingthe PARTICIPANT' s total Contribution and the totalnumber of Participant's Parking Spaces based on the terms of this Section I ( c)

2. Term of the Agreement.

The term of this Agreement shall commence on the date of execution of this Agreement and shall be for a termof fifty- fivc (55) yearsunlessterminatedearlier in accordancewith Paragraph 14 Terminal ton for Cause), except that the obligations of the parties under Paragraph 13 Indemnification) shallcontinuein full forceandeffectaftersaidexpirationdateor early terminationdalein relationtoactsor omissionsoccurringpriortosuchdates.

3. Damage or Destruction of Parking Structure
a) If theParkingStructureis damagedordestroyedbyacasuallyorsimilareventthatresultsin a reduction of Parking Rights, and less thanfifty- five (55) yearshaveelapsed from the Commencement Date, then the COUNTY shall make good faith efforts to repair or replace the ParkingStructureontheProperty, providedtheCOUNTY hassufficientfundsfor therepairor replacementfrominsuanceproceedsorfromathirdpattysourceof funds. COUNTY represents that it participates in a self- insurance program as further described in Paragraph 12 below. b) if theParkingStructureisdamagedor destroyedbya casualtyorsimilareventandfifty-five 55) or more years have elapsed since the Commencement Dale, the COUNTY shall not be obligated to replacethe Parking Structure.
c) Withinonehundredtwenty (120) daysfollowingthedamageordestructionof theParking Smicure describedin subparagraph (a), theCOUNTY shaltnotifyPARTICIPANT astowhetherit mill replace the Parking Structure on the Property, or whether it locks sufficient funds for the repair or replacementthereof If the COUNTY does not elect to repair or replace the Parking Structure on theProperty, eitherpartymayterminatethisAgreement, in whicheventtheCOUNTY shall ci01n051a- ClNopaPts( iwiSciwcdn Ju
Exhibit I. I- 1 and 1-2. Page xliv
ATTACHMENT 1

reimbursePARTICIPANT to the extendthat PARTICIPANT did nor realize the benefits of its Contributionforthefull termof thisAgreement. By wayof example, if PARTICIPANT contributedOneMillion Dollars ($3,000,000), andtheParkingStructurewasdamagedordestroyed twenty-two (22) yearsintothefifty-five (55) yeartensandtheCOUNTY electednottorepairor replace the structure, PARTICIPANT would be entitled to a Six Hundred Thousand Dollars 5600,000) reimbursementof its Contribution, representingsixtypercent (6011.) of itsoriginal contribution, basedontheunavailabilityof ParkingRightsfor theremainingthirty-three (33) years, or sixty percent ( 60%)) of the initial term of this Agreement. d) If theParkingStructureis damagedbyacasualtyorsimilarevent, duringtheperiodin whichtheParkingRightsarereducedorunavailable, theCOUNTY shallreimburse PARTICIPANT on a pro -rete basisbasedon a calculation of the PARTICIPANT' s cost per day for suchParkingRightsgiventhesizeoftheContributionandtermoftheAgreement. Suchrefund shallbethePARTICIPANTS soleremedyforthereductionorlackof availabilityof theperking providedby theParkingRights.
e) After fifty-five (55) yearshaveelapsedsincetheCommencementDate, COUNTY in itssole discretionmaydecidetodiscontinuetheuseofthePropertyforaParkingStructure. Insuchcase, COUNTY shallprovidePARTICIPANT onehundredtwenty (120) daysnoticepriortothe expirationdateof theAgreement. If afterfifty-five (55) yearshaveelapsedsincethe Commencement Date, and COUNTY still desiresto operatethe Parking Structure, COUNTY and PARTICIPANT agree to negotiate in good faith an extension of this Agreement under the same terms and conditions.

4. Licensefor Parking Rights.
a) " Parking Rights" shall meanPARTICIPANT' s exclusive right to use of an estimated twenty-eight (28) spaces, which shall bemore specifically determinedpursuant to the calculations basedontheActualCostof theParkingStructuresetforthin Section1aboveandshallbe designated as " Reserved Spaces" for PARTICIPANT.
b) The COUNTY herebygrantstoPARTICIPANT ( includingPARTICIPANT' s agents. employees, contractors, licensees, assignees, sublessees, transferees, representatives, guests, customers, invitees, or visitors), a license to use for theterm of the Agreement theParking Rights as definedaboveandmoreparticularlysetforthin thediagramin Exhibit "C" attachedhereto. The COUNTY andPARTICIPANT agreetocooperatein goodfaithin determiningamethodfor designating the Reserved Spaces, and ensuringthat PARTICIPANT' s rights to such Reserved Spacesareprotectedandenforced. COUNTY andPARTICIPANT mayalsomutuallyagreeto a changein thelocationof ParticipantParkingSpaces.

5. OperationsandMaintenanceof Parking Structure.
a) OperatingCosts.
i) Costs for theoperationsand maintenanceof the Parking Structure ("Operating Costs") areestimatedatapproximatelyTwo HundredThousandDollars ($200,000) peryear. This amountshallbedeterminedwithmorespecificityin anOperationsandUseAgreementtobe enteredintoin thefutureamongCOUNTY, CITY, PARTICIPANT andotherparticipants. For purposesof this Agreement, Operating Costs shall include commercially reasonableexpensesand costswhich COUNTY shallpayorbecomeobligatedtopaybecauseof orin connectionwiththe ownership, operation, repairand/ormaintenanceof theParkineStructure, including, without limitation: ( A) all maintenance, janitorial and security costs; ( B) costs for all materials, supplies and rnntaosecw, o,wrr� uti� a,+ v«
Exhibit 1, 1- 1 and 1-2, Page xlv
ATTACHMENT 1

equipment; (C) costs of water, electricity, refuse collection, parking lot sweeping, landscaping, and other utilities and services relatingto the Parking Structure; (D) all costs ofalterations or improvementstodieParkingStructuremadetoachievecompliancewithanyfederal, stateandlocal law including, withoutlimitation, theAmericanswithDisabilitiesAct (42U.S.C. Section12101et seq.) ("ADA"), orto reduceOperatingCostsor improvetheoperatingefficiencyof theParking Structure, all of which costs will be amortized over the useful life of such alterations or improvementsasCOUNTY shallreasonablydetermine; (E) costsforrepairs, replacements, and generalmaintenanceof theParkingStructure, butexcludinganyrepairsorreplacementspaidfor out of insurance proceedsor by other parties; (F) costs of maintaining machinery, equipment and directionalsignageor othermarkers; and (G) anyinsurancepremiumsthatarespecifically allocatable to insuring the Parking Structure.

OperatingCostsshallnotinclude (A) capitalimprovements (exceptasotherwiseprovided above); (B) costsof special servicesrenderedto otherprivate participants (including PARTICIPANT) for which a special charge is made; ( C) aawneys' fees and other expenses incurred in connection with the Parking Structure or enforcing rules and regulations for the Parking Structure; (D) depreciation or amorliantion, other thanas specifically enumeratedin the definition of Operating Costs above, (E) nonrecurring costsincurred to remedydefects in the original construction of the Parking Structure and (F) repairs or otherwork neededdue to fire, windstomts. orothercasualtyorcausetotheextentCOUNTY hasreceivedinsuranceproceedsfor suchrepairs or other work.
ii) PARTICIPANT shall pay to COUNTY, " PARTICIPANT' s Parking Percentage Share" of theOperatingCostsonabi-monthlybasiscommencingonthefirstdayof thefirstmonth followingthecompletionof theconstructionof theParkingStructureForpurposesof this Agreement, "PARTICIPANT' s Parking PercentageShare" shall meanthe number of spaces licensedto PARTICIPANT for its Parking Rights pursuantto this Agreement divided by the total numberof parkingspacesin theParkingStructure. If thenumberof spacesin theParkingStructure or PARTICIPANT' sParking Rights are changed, thenPARTICIPANT' s Parking PercentageShare shall beadjusted accordingly.
tit) TheCOUNTY shallberesponsiblefor "COUNTY' sParkingPercentageShare" of the Operating Costs. " COUNTY' s Parking PercentageShare" shall meanthe number of spaces reservedfor the COUNTY' s usepursuantto this Agreement divided by the total number of parking spacesin thePmkmgStructure. If thenumberof spacesin theParkingStrucrumorthenumberof COUNTY' s reseryedparking spacesarechanged, then COUNTY' s Parking PercentageShare shall beadjusted accordingly.
i v) It isunderstoodamongthepanicsthattheCITY shallberesponsiblefora shareof theOperating Costs to be determinedmore specifically in a subsequentOperations and Use Agreement enteredinto amongthe COUNTY, CITY, PARTICIPANTS and other participants; providedhowever, thattheextentof CITY' sresponsibilityfor ashareof theOperatingCostsas determined in the Operations and Use Agreement, shall have no effect on the calculation of PARTICIPANT' s operating costspursuantto Paragraph5(a)(ii), above. v) COUNTY shall also establisha reservefund in theamount of Thirty Thousand Dollars ($30,000) annuallycomprisedof proportionalcontributionsfromCOUNTY, CITY, PARTICIPANT and other participants (" Reserve Fund") for the duration of this Agreement for the preventive maintenance, periodic repair, replacement of components, and related improvements of theParkingStructure, whichshallbecontributedtoproportionallybyCOUNTY, CITY, PARTICIPANT, and other participants The Parties agreeto regularly negotimeand determine ainaos� n- ce�m� rere> nsrn� r, a«
Exhibit I, 1- 1 and 1-2, Page xlvi
ATTACHMENT 1

necessaryadjustmentstotheamountof theReserveFundeveryfive (5) yearsormorefrequentlyas neededforthedurationof thisAgreementTheCountyAuditor -Controllershallberesponsiblefor establishingandmaintainingtheReserveFundforthedurationof thisAgreement. vi) PARTICIPANT shall havethe right to employ vendors and contractors for the operations of theParking Structure, including but not limited to valet operators. vii) Notwithstandinganytermsorprovisionsof thisParagraph5(a) tothecontrary, in the event that theCOUNTY chargesthe public to Park in the Parking Structure ('Public Parking Fees"), theproceedsfromsuchPublicParkingFeesshallbeusedtopaytheOperatingCostsforthe ParkingStructure. To theextentthataportionof theOperatingCostswepaidwiththeptoccedsof Public ParkingFees, theOperatingCostspayablebyCOUNTY, CITY, andPARTICIPANT pursuant to this Paragraph5(a) shall beoffset suchthat eachparty shall only be responsible for their parking percentageshareof the remaining Operating Costs. b) Maintenance.
i) Following completion of construction of the Parking Structure, the COUNTY shall maintain the Parking Siructum in good condition and repair consistentwith customary maintenance practices. Any maintenanceorimprovementworkperformedon theParkingStnrctureshallbe diligentlyperformedandcompletedinagood, workmanlikeandtimelymanner, andshallbe completedin suchamannerasto returntheParkingStructuretono lessthenthesamecondition that it was in prior to the commencement of such maintenance and repair work. The COUNTY shallcoordinateandreasonablycooperatewiththePARTICIPANT in performingtherepairand maintenarree obligations described in this Agreement and shall give the PARTICIPANT reasonable noticepriortocommencinganyrepairormaintenancetotheParkingStrucrum. ii) Any workdoneontheParkingStructurebytheCOUNTY shallbeperformedin a manner which causestheleast interferencereasonablypossible, and reasonablesteps shall be taken by COUNTY toensurethattheperformanceof suchmaintenanceandrepairsdoesnotadversely affect the PARTICIPANT.
iii) The parties to this Agreement shall be required to contribute to the cost of any maintenance aspari of their respectiveobligations for Operating Costs, asdescribed in Paragraph 5( n) above.

6. General Use Prohibitions.

PARTICIPANT and COUNTY agree that in connection with and to the extent of the PARTICIPANT' sandCOUNTY' s useandoperationof theParkingStructure. PARTICIPANT and COUNTY will not:
a) Create, cause, maintain or permit any nuisancein or about the Parking Structure; or b) Commitorsuffertobecommittedanywastein or abouttheParkingStructureorthe Property; or
c) KnowinglyallowtheParkingStructuretobeusedforanyunlawfulpurpose; or d) Permitundueaccumulationsof garbage, trash, rubbishoranyotherrefusein theParking Structure; or
e) Causeor permitobnoxiousodorstoemanatefromor bedischargedin or fromtheParking Structure; or
f) Create, cause, maintainorpermitanynoiseorsoundthatisobjectionabledueto intermittence, beat, frequency, shrillnessorloudness (excludingtheoccasionalnoisefromanerrant car alarm); or
cnrnaoSl& cw. rma. sn�
Exhibit 1, 1- 1and 1-2, Page xivii
ATTACHMENT 1

g) Creatc, reuse, maintain, orpermitcreationofanydust, dirt, orflyashinexcessive quantities; or
h) Create, cause, maintain or permit any motor vehicle servicing, including but not limited to the washing of cars, or repair shop thatprovides any such servicing.

7. Security; Enforcement.

Theregularhoursof operationof theParkingStructurebyCOUNTY shallbesetforthwith morespecificityin anOperationsandUseAgreementtobeenteredintoamongCOUNTY, CITY, PARTICIPANT and other participants in the future. The COUNTY shall provide security for the Puking Structurefor certainhours of opemdoDof the Parking Structure, which shall be substantiallyconsistentwiththelevelof servicethatCOUNTY orCITY providesin otherparking structuresin DowntownNapa; however, suchprovisionof securitymaynotbefortheentire duration of theoperationalhours of the Perking Structurereferencedimmediately above.

COUNTY will notprovidesecurityMothertimeseventhoughtheParkingStructureis beingused forparkingforpublicuse. At PARTICIPANT' ssolecost, PARTICIPANT mayprovideadditional securityduringhoursin whichtheCOUNTY isnotprovidingsecurity. ThePARTICIPANT shall coordinatemy additionalsecurityit provideswiththesecuritytheCOUNTY providesandwith securityforotherparticipantsinsimilarparkingparticipantagreements.

The COUNTY and PARTICIPANT agreeto cooperatein good faith in determining a method for designating theReserved Spaccs, and ensuring thatPARTICIPANT' s rights to such Reserved Spaces are protected and enforced.

8. Approvals of Transfers.

Transfer" means: any tote] or partial sale. sublicense, assignmentor conveyance, or my trust or Power, or any transfer in any other mode or form, of or with respectto this Agrament, of the ownershipintheParkingRightsoranyinteresttherein, oranycontractoragreementtodoanyof the same.

Subject to the terms and conditions of this paragraph, PARTICIPANT shall have the right to TransferitsPerkingRights. Any Transfernotpermittedbythisparagraphshallbenull andvoid. In the event thatPARTICIPANT desires to Transfer its Parking Rights, PARTICIPANT shall provide COUNTY andCITY withthirty (30) daysnoticeof anysuchTraasfer, andsuchTransfershallbe subject to the COUNTY' s consent, which consent shall not be unreasonablywithheld, conditioned ordelayed. NotwithstandingtheForegoing, if eachof thefollowingconditionsaresatisfied, PARTICIPANT' sTransferof itsParkingRightsshallnotbesubjecttoCOUNTY' scement:
a) The transferee enters into an assignment and assumption agreement with the PARTICIPANT pursuant to which the transferee agrees to undertake the obligations of PARTICIPANT under this Agreement;
b) The PARTICIPANT and the transferee execute and provide to the COUNTY documentation reasonablysatisfactory to the COUNTY of PARTICIPANT' s assignmentof the rights and delegation of duties under this Agreement to the transferee, c) There is no uncured Event of PARTICIPANT Default under this Agreement; and d) Following my Transfer, PARTICIPANT most remain in compliance with the CITY' s parking requirements (as setforth in applicable use permits, etc.) regardingthe PARTICIPANT' s obligation to provide parking for the useof its property.

In additiontotheforegoingtermsandconditionsregardingthePARTICIPANT' s rightsto Transfer its Parking Rights, PARTICIPANT may assign its rights under this Agreement, without mm�ostocwoa= n ecuts, emr, m�
Exhibit I. 1- 1and 1-2, Page xlviii
Iti
ATTACHMENT 1

anyapprovalof COUNTY orCITY, toanyentitywhichiswhollyownedbyPARTICIPANT or by aparentof aPARTICIPANT, oranyentityin whichPARTICIPANT oraparentof PARTICIPANT hasanequityinterestandis ageneralor managingparmer/member, andshallincludeanynewor existingentitysolongassuchentityisowned, controlledormanagedby (or undercommoncontrol with) PARTICIPANT. NoassignmentbyPARTICIPANTshallresultinPARTICIPANTbeing releasedfrom any obligations of PARTICIPANT to COUNTY under this Agreement

9. Prohibited Encumbrances.

PARTICIPANT shallnothavetherighttoplaceor createanymortgageordeedof trustupon theParkingRightsor theProperty, orplaceor suffertobeplacedupontheParkingRightsor Propertyormylien, levyor attachmentorotherencumbrance. Notwithstandingtheforegoing, in connectionwithobtainingfinancingrelatedto PARTICIPANT' s realproperty, PARTICIPANT mayassignitsPerkingRightstoalenderasadditionalsecurityforthefinancingofsuchreal property. However, anysuchfinancingandassignmentforsecuritypurposesshallrequirethe lender to besubjectto all termsof this Agreementas of the dateof foreclosure (i.e, all obligations and restrictionsrelatedto PARTICIPANT' s useof the Parking Structure), Any suchmortgage, lien, levyorattachmentor othererxwnbrancesprohibitedbythisparagraph shallbedeemedtobeaviolationof thiscovenantonthedateof itsexecutionorfiling of record, regardless of whether or when it is foreclosed or otherwise enforced, unless PARTICIPANT shall, within sixty (60) days of such date of executionor filing of record, remove any such mortgage, lien, levy or attachmentor other encumbrances.

10. Rights of Lenders.

If PARTICIPANT provides COUNTY with the nameof soy lender to whom PARTICIPANT has madea Transfer, COUNTY shall give such lender notice of any default or failure by PARTICIPANT trader this Agreement and such lender shall have the right to true such default or failurewithinninety (90) daysfollowingreceiptof suchnoticeof PARTICIPANT' sdefault.

11. Transrer by the COUNTY.

At any time andwithout the consentof the PARTICIPANT, the COUNTY may Transfer its rightsandobligationsunderthisAgreementsolongasthetransfereeownsor hastherightto operate theParking Structure. A transfereeof COUNTY' s rights and obligations under this Agreement shall agree in writing to perform all obligations of the COUNTY pursuant to the terns of this Agreement, including without limitation, theobligation to maintain insuranceon the Parking Structureatsuchlevelsasarereasonableandcustomaryforsuchpropertyandimprovements.

12. Insurance.

COUNTY is a participant in a self-insuranceprogram with casualty and excess liability eovemgelimitsuptoTwenty -FiveMillion Dollars (525,000,000) tocoveranythird -partyclaimsfor damagesagainsttheCOUNTY resultingfromtheoperationsof theParkingStructure. The COUNTY alsomaintainsfimt-partypropertyinsurancecoveragein theamountof Seventy -Five Million Dollars (575,000,000) whichincludesearthquakeandfloodliabilitytocoveranysuch potentialdamagetotheParkingStructure. ThePARTICIPANT shallbenamedasanadditional insured for such policies. COUNTY shall maintain the above mentioned insurance for the duration of this Agreement.
cAUB0a1a11VoryPtrGoNcM1rtvo AIX
Exhibit 1, 1- 1and 1-2, Page Aix
hv'
ATTACHMENT 1

However, in the eventPARTICIPANT hires any vendor or contractorto perform any service in connectionwiththeoperationsoftheParkingStructureincludingbutnotlimitedtovaletservices, PARTICIPANT shall, or require its vendoror contractor to obtain liability insurance with a minimum of One Million Dollars (51,000,000) of liability coverageto cover such vendors or contractors. Such coverageshall be subjectto the reasonableapproval of COUNTY' s Risk Managerandverifiedbycertificatesofcoverage. PARTICIPANTshallbenamedasanadditional insured for any such vendor or contractor insurancecoverage.

13. Hold Harmless/ Defenseflndemnification.
a) Tothefullextentpermittedbylaw, PARTICIPANTshallholdharmless, defendatitsown expense, andindemnifyCOUNTY andtheofficers, agents, employeesandvolunteersof COUNTY fromanyandall liability, claims, losses, damagesor expenses. includingreasonableattorney's fees, Forpersonal injury (including death) or damageto property, arising from all acts or omissions of PARTICIPANT or its officers, agents, employees, volunteers, contractorsand subcontractors in renderingservicesunderthisAgreement, excluding, however, suchliability, claims, losses, damagesor expensesarising from the negligenceor willful acts of COUNTY or its officers, agents, employeesorvolunteers. Eachpartyshallnotifytheotherpartyimmediatelyin writingof any claim or damage related to activities performed under this Agreement. The parties shall cooperate with each other in the investigation and disposition of any claim arising out of the activities under thisAgreement, providingthatnothingshallrequireeitherpartytodiscloseanydocuments, records or communications that are protected under peer review privilege, attorney- client privilege, or attorney work product privilege,
b) Tothefullextentpermittedbylaw, COUNTYshallholdharmless, defendatitsown expense, and indemnify PARTICIPANT and the officers, agents, employeesand volunteers of PARTICIPANT fromanyandall liability, claims, losses, damagesorexpenses, including reasonableattorney'sfees, forpersonalmpuy (includingdeath) ordamagetoproperty, arisingfrom all acts or omissions of COUNTY or its officers, agents, employees, volunteers, contractors and sub -contractorsin rendering servicesunderthis Agreement, excluding, however, such liability, claims, losses, damagesorexpensesarisingfromthenegligenceorwillful actsof PARTICIPANT or its officers, agents, employeesor volunteers. Each party shad] notify the other party immediately in writing of any claim or damagerelatedto activities performedunder this Agreement The parties shrill cooperatewith each other in the investigation and disposition of any claim arising out of the activities underthis Agreement, providing thatnothing shall require eitherparty to disclose any documents, recordsor communications thatare protectedunder peer review privilege, attorney- client privilege, or attorney work product privilege.

IJ. Termination for Cause.

If eitherpartyshallbein DefaultunderthisAgreementandfail tocuresuchDefaultwithin thirty (30) daysof receiptof writtennoticefromtheotherpartydescribingthenatureof theDefault, thenon -defaultingpartymay, in additiontoartyotherremediesit mayhave, terminatethis Agreementbygivingthirty (30) dayspriorwrittennoticetothedefaultingpartyinthemannerset forth in Paragraph 17 (Notices); provided, however, that if the nature of such Default is such that thesameis curablebutcannotreasonablybecuredwithinsuchthirty (30) dayperiod, a partyshell not be deemedto be in Default if such party shall within suchperiod commence such core, provide reasonablewrittenassuranceof dueperformanceandthereafterdiligentlyandcontinuallyprosecute thesametocompletionCOUNTY herebyauthorizestheNapaCountyExecutiveOfficertomake arPHOSJ3LVJogI' trG� lS� AnJn Jac
Exhibit I. 1- 1 and 1-2. Page I
ATTACHMENT 1

all decisions and take all actions required under this paragraph to terminate this Agreement on behalf of COUNTY for cause.

15. Defaull.
a) Thefollowingshallconstitmea "Default" byPARTICIPANT underthisAgreement: a failurebyPARTICIPANT toobserveandperformanymaterialprovtsionof thisAgreementtobe observedor performedbyPARTICIPANT, wheresuchfailurecontinuesforsixty (60) daysafter notice thereof from COUNTY; provided, however, that if the nature of the default is such that the sameiscurablebutcannotreasonablybecuredwithinsuchsixty (60) dayperiod, PARTICIPANT shall not be deemed to be in default if PARTICIPANT shall within such period commence with the core, provide reasonablewritten assuranceof due performance and thereafterdiligently and continually prosecute the same to completion.
b) The followingshallconstitutea "Default" byCOUNTY underthisAgreement: a failureby COUNTY to observe and perform any material provision of this Agreement to be observed or performedbyCOUNTY, wheresuchfailurecontinuesforsixty (60) daysafternoticethereoffrom PARTICIPANT; provided, however, that if the nature of the default is such that the same is curable butcannotreasonablybecuredwithinsuchsixty (60) dayperiod, COUNTY shallnotbedeemedto he in default if COUNTY shall within such period commence with the cure, provide reasonable written assuranceof due performance and thereafterdiligently and continually prosecutethe same to completion.

16. No Waiver.

The waiver by eitherparty of any breachor violation of any requirement of this Agreement shall notbedeemedtobeawaiverof anysuchbreachin thefuture, or of thebreachof anyother requirement of this AgreemenL

17. Notices.

All notices required or authorizedby this Agreement shall bein writing and shall be delivered in person or by deposit in the United Slatesmail, by certified mail, postageprepaid, return receipt requested. Any mailednotice, demand, request, consent, approvalorcommunicationthateither party desires to give the other party shall be addressedto the other party at the addressset forth below. Either party may change its addressby notifying the other party of the change of address.

Any noticesentbymailin themannerprcxTibedbythispwagrupltshallbedeemedtohavebeen received on thedatenoted on the return receipt or five (5) days following the dateof deposit, whichever is earlier.

COUNTY
Nape County Executive Officer
1195 Third Street, Suite 310
Napa, California 94559

PARTICIPANT
Andrea Schrader
P. O. Box 388
Napa, California 94559

18. AmendmenNMadification.

Exceptasspecificallyprovidedherein, thisAgreementmayhemodifiedor amendedonly in writing and with the prior written consentof bothparties. vraoswtwap rc. ts< twtQ as 10
Exhibit 1, 1-1 and 1-2, Page Ii
ATTACHMENT 1

19. Interpretation; Venue.
a) Interpretation. The headingsused herein are for referenceonly The terms of the Agreementaresetoutin thetextundertheheadings. ThisAgreementshallbegovernedbythelaws of the Stare of California without regard rn the choice of law or conflicts. b) Venue. This Agreementismadein NapaCounty, California. Thevenueforanylegal actioninstatecourtfiledby eitherpartytothisAgreementforthepurposeof interpretingor enforcing any provision of this Agreement shall be in the Superior Court of California, County of Napa, aunifiedcourt. Thevenueforanylegalactionin federalcourtfiledbyeitherpartyto this Agreementforthepurposeof interpretingorenforcinganyprovisionof OilsAgreementlying rnihm the jurisdiction of the federal courts shall be the Northern District of California. The appropriate venue for arbitration, mediation or similar legal proceedings under this Agreement shall beNapaCounty, California; however, nothingin thissentenceshallobligateeitherpartytosubmit tomediationorarbitrationanydisputearisingunderthisAgreement.

20. Compliance with Laws.

Exceptasto thosemattersthataretheresponsibilityof theCOUNTY, PARTICIPANT shall, at PARTICIPANT' s sole cost and expense, comply with and shall causeany of its managers, employeesor contractors to comply with all federal, state, county, municipal and other government statutes, laws, rules, orders, regulations and ordinances affecting the Property and the Parking Structure, the use thereof, or construction thereon, to the extent of PARTICIPANT' s use and operation of the Pocking Structure, excluding those which require the making of any structuralor extraordinarychanges, whether or not any such statutes, laws, rules, orders, regulations or ordinances which may behereafter enactedwere within the contemplation ofthe partiesof the time of execution of this Agreement, or involve a changeof policy on thepart of the governmentbody enactingthesame. Countyshallconstructthefacilitytocomplywithall lawsincludingtheADA andshallkeepthepropertyin compliancewiththeADA provisionstotheexpenditureof funds whichwill bebilledproportionatelytotheCITY, COUNTY andPARTICIPANTS.

21. Access to Records/ Retention.

PARTICIPANT, orthedulyauthorizedrepresentativesthereof, shallhaveaccesstomy books, documents, papersand recordsof COUNTY which are directly pertinentto the subject matterof thisAgreement (includingwithoutlimitation, recordsrelatedtoOperatingCosts) forthepurposeof making audit, examination, excerpts and transcriptions.

22. Authority to Contract.

PARTICIPANT andCOUNTY eachwarrantherebythattheyarelegallypermittedand otherwise have theauthority to enter into andperform this Agreement

23. Third Partv Beneficiaries.

Nothing contained in this Agreement shall be construed to createany rights in third partiesand the parties do not intend to create such rights.

24. Attorney' s Fees.

In the eventthateither parry commenceslegal action of any kind or characterto eitherenforce theprovisionsof thisAgreementor toobtaindamagesforbreachthereof, theprevailingpartyin VganSla{ Wv� W' tgnalSdim, k, mr 11
Exhibit I, 1- 1and 1-2. Page In
ATTACHMENT 1

such litigation shall be entitledto all cons and reasonableattorney's feesincurred in connection with such action.

25. Severability.

If anyprovisionofthisAgreement, oranyportionthereof, isfoundbyanycourtofcompetent jurisdictiontobe =enforceableorinvalidforanyreason, suchprovisionshallbeseverableand shallnotinanywayimpairtheenforceabilityof anyotherprovisionofthisAgreement.

26. Entirety of Contract.

This Agreementconstitutesthe entireagreementbetween the partiesrelating to the subject of this Agreement and supersedes all previous agreements, promises, representations, understandings and negotiations, whetherwritten or oral, among the parties with respectto the subject maser hereof.

IN WITNESS WHEREOF, thisAgreementwasexecutedbythepartiesheretoasof thedate first above written.

By:

Andrea S43nder
PARTICIPANT"
COUNTY OF NAPA, a political subdivision of
the State of California
By It t' -(
Al'
l�E�� crt J'
ROLD M SKOWITE, Chair of the Board of
Supervisors
COUNTY"
ATTEST:

Clerk of the Board of Supervisors
o U ArrRovEn ar T11E XAPA COUKrV
APPROVEDASTOrORM W,\ RD0r5UPERVIS0RS
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Exhibit], 1- I and 1-2, Page liii
ATTACHMENT 1

EXHIBIT" A"

GRAPHIC DESCRIPTION OF THE PROPERTY
v o e•• e s n e e r �

PLAT OF PROJECT AREA
@ cA KYf ( N L/ J s
THE COUNTY OF NAPA N a T
FbAVTY C1` NAPA Ul M•
Au[¢ luLr. tf[ wra� er rpo
NAPACOUNTYOFPAgINCNr [TP(/BI/Cxpw'S cerinmaerm -omas
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Exhib❑ 1. 1- 1 and 1-2, Page liv
ATTACHMENT 1

EXHIBIT - B"

LEGAL DESCRIPTION OF PROPERTY
Theprojectareacorridoris definedbya lowof demartatiuudrawnparalleltothesoutheasterlyline of the parcef of land described in the Grant Deed filed January 15, 2003 and recorded as Document No. 2003-0002112in theofficeof theRecorderof NapaCounty, Californiaand20feetfromthe southeasterlyfaceoftheNapaCountyHallofJusticeBuilding. Saidprojectdemarcationline extendsto thenortheasterlyand southwesterlylinesof theabovementionedparcelandisoffsetby a parallel line 120.5 feetto the southeastalso bounded by the extendednortheasterly and southwesterly lines of the above mentioned parcel.

The above project area comprises 50, 614 square feet or 1.16 acres. rr>, 00snte+, ow� vs« om as 14
Exhibit 1,1- 1 and 1-2, Page Iv
i.

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ATTACHMENT 1

EXHIBIT" C"

DIAGRAM OF PARKA' G STRUCTURE SETTING FORTH NUMBER AND LOCATION OF COUNTY. CITY, PARTICIPANT, AND OTHER PARTICIPANT PARKNG SPACES I AM U� HU PAW% 1Ak71E
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EXHIBIT " D"
ESTIMATED TOTAL COST/ PROJECT BUDGET WORKSHEET AS OF 12/ 18/ 16 Item Amount
Construction
ConstructionContingency
Wa" ( County's Architect)
CountyProject & ConstructionMgmt.

Utility Fees, Inspections, Labor Compliance, & Permits
County Public Works Administration
Grand Total
osecw�. r� rw� i, sa,� 20
Exhibit I, 1- 1 and 1-2, Page Ixi
11, 960, 000
S 1,196, 000
5 469, 200
S 490, 000
S 520,000
S 440. 000
515, 075, 200
ATTACHMENT 1

CITY of NAPA
March 27, 2009
Ms. Andrea Schrader
P. O. Box 388
Napa, CA 94559

CITY CLERK
955 School Street
Mailing Address:

PO Box 660
Napa, California 94559- 0660
707) 257- 9503
FAX # ( 707) 257- 9534
www. cityotnapa. org
Re: Operations and Use Agreement for the Fifth Street Parking Garage; City Agreement No. 9831; County Agreement No. 7191
Dear Ms. Schrader
Enclosed please find an original of the above -referenced agreement for your records.

Very trulyyours,
a
SA1aDY C. TEL
Legal Secretary
Enclosure
cc. Jennifer La Liberte
ATTACHMENT 1

A► 4
11E
CITY of NAPA
March 27, 2009
Mr. Harry Price
Napa Mill, LLC
500 Main Street
Napa, CA 94559

CITY CLERK
955 School Street
Mailing Address:

PO Box 660
Napa, California 94559- 0660
707) 257- 9503
FAX # ( 707) 257- 9534
www. cityotnapa. org
Re: Operations and Use Agreement for the Fifth Street Parking Garage: City Agreement No. 9831; County Agreement No. 7191
Dear Mr. Price:

Enclosed please find an original of the above -referenced agreement for your records.

Very truly yours,
ArfDY C.

Legal Secr ary
Enclosure
cc. Jennifer La Liberte
ATTACHMENT 1

CITYof NAPA
March 27, 2009
Mr. Massimo Desimoni
Channel Properties, Inc.
100W. Cutting Boulevard
Richmond, CA 94804

CITY CLERK
955 School Street
Mailing Address:

PO Box 660
Napa, California 94559- 0660
707) 257- 9503
FAX # ( 707) 257- 9534
www. cityotnapa. org
Re: Operations and Use Agreement for the Fifth Street Parking Garage: City Agreement No. 9831: County Agreement No. 7191
Dear Mr. Desimoni:

Enclosed please find an original of the above -referenced agreement for your records.

Very truly vours.

Enclosure
cc. Jennifer La Liberte
ATTACHMENT 1