Agenda packet — Redondo Beach City Council, November 19, 2024 (part 2 of 4)

4. Notwithstanding Paragraph B.3., when this
Coverage Form and any other Coverage
Form or policy providing liability coverage
apply to a power unit and any connected
"trailer" or "trailers" and:
a. One provides coverage to a Named
Insured engaged in the business of
transporting property by "auto" for hire;
and
b. The other provides coverage to a Named
Insured not engaged in that business; and
c. At the time of an "accident", a power unit
is being operated by a person insured
under the Coverage Form or policy
described in Paragraph 4.a., then that
Coverage Form or policy is primary for
both the power unit and any connected
"trailer" or "trailers" and the Coverage
Form or policy described in Paragraph

4.b. is excess over any other coverage
available to such power unit and attached
"trailer" or "trailers".

C. As used in this endorsement:
"Commercial vehicle" means an "auto" subject
to registration or identification under California
law which is:

1. Used or maintained for the transportation of
persons for hire, compensation or profit;

2. Designed, used or maintained primarily for
the transportation of property; or

3. Leased for a period of six months or more.

AWFH777635
248
Administrative
Report
H.6., File # 24-1700 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
ACCEPT AS COMPLETE THE CITYWIDE SLURRY SEAL PROJECT, PHASE 4, JOB NO. 41140,

AND AUTHORIZE THE CITY ENGINEER TO FILE A NOTICE OF COMPLETION FOR THE

PROJECT WITH THE LOS ANGELES COUNTY RECORDER AND RELEASE THE FINAL RETENTION PAYMENT OF $23,416 TO AMERICAN ASPHALT SOUTH, INC., UPON EXPIRATION OF THE 35-DAY LIEN PERIOD AFTER SAID RECORDATION AND NO CLAIMS BEING FILED

UPON THE PROJECT

EXECUTIVE SUMMARY
On May 7, 2024, the City Council awarded American Asphalt South, Inc. (American Asphalt South) a public works contract for $484,044.77 for construction of the Citywide Slurry Seal Project, Phase 4, Job No. 41140 (Project). The Project is now complete and ready for City Council acceptance and authorization to release the final retention amount of $23,416.20 to the contractor upon expiration of the 35-day lien period and there being no claims filed.

During construction, it was determined that alternative asphalt repair methods could be implemented in preparation for the slurry seal in some locations. This resulted in $15,720.60 of project labor and material savings and brough the final contract expenditure total down to $468,324.17. A portion of the project savings will be used to install additional street striping in certain locations that will be performed by a street striping contractor who is scheduled to begin work in the City in December.

BACKGROUND
The Citywide Slurry Seal Program is an on-going Capital Improvement Program that applies crack seal, slurry seals, refreshed striping, and pavement markings to the City’s streets. The program increases the life of the existing pavement, thereby reducing the frequency of more expensive rehabilitation efforts. This project supports the City’s Strategic Plan goal to invest in the City’s infrastructure.

On February 20, 2024, the City Council approved the project plans and specifications and authorized the City Clerk to advertise the project for competitive bids. The Project was advertised on April 4, 2024, and 3 bids were received and publicly opened on April 17, 2024. After reviewing the bids, American Asphalt South, with a bid of $484,044.77 was found to be the lowest responsible bidder.

Construction began on July 18, 2024, and no change orders were issued. On October 10, 2024, the project was reviewed and determined to be complete. Reconciliation in the final bid item quantities resulted in a reduction of $15,720.60 (-3.25%) from the contract award value.

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The streets completed under this contract include those identified in the Citywide Slurry Program Cycle 2 Phase 4, as approved by City Council on February 20, 2024 including the additive alternates, and are depicted on the attached map.

COORDINATION
The Project was coordinated between the Public Works Engineering and Maintenance Divisions.

The City Attorney’s Office approved the reconciliation as to form.

FISCAL IMPACT
The cost to construct the Citywide Slurry Seal Project, Phase 4 was $468,324. Funding for the project was included in the Adopted FY 2024-25 Capital Improvement Project Budget.

Funding: Expenditures:

Measure R $ 329,280 Construction Contract $ 468,324
Capital Funds $ 139,044
Total $ 468,324 Total $ 468,324
APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
Map of Completed Streets

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250
Administrative
Report
H.6., File # 24-1700 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
ACCEPT AS COMPLETE THE CITYWIDE SLURRY SEAL PROJECT, PHASE 4, JOB NO. 41140,

AND AUTHORIZE THE CITY ENGINEER TO FILE A NOTICE OF COMPLETION FOR THE

UPON THE PROJECT

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H.6., File # 24-1700 Meeting Date: 11/19/2024
The streets completed under this contract include those identified in the Citywide Slurry Program Cycle 2 Phase 4, as approved by City Council on February 20, 2024 including the additive alternates, and are depicted on the attached map.

COORDINATION
The Project was coordinated between the Public Works Engineering and Maintenance Divisions.

The City Attorney’s Office approved the reconciliation as to form.

FISCAL IMPACT
The cost to construct the Citywide Slurry Seal Project, Phase 4 was $468,324. Funding for the project was included in the Adopted FY 2024-25 Capital Improvement Project Budget.

Funding: Expenditures:

Measure R $ 329,280 Construction Contract $ 468,324
Capital Funds $ 139,044
Total $ 468,324 Total $ 468,324
APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
Map of Completed Streets

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253
Administrative
Report
H.7., File # 24-1816 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
INTRODUCE BY TITLE ONLY ORDINANCE NO. 3285-24, AN ORDINANCE OF THE CITY OF REDONDO BEACH, CALIFORNIA, AMENDING CHAPTER 7, ARTICLE 3, SECTIONS 3-7.1201, 3-

7.1203, 3-7.1204, 3-7.1205, 3-7.1206, 3-7.1207, 3-7.1208, AND 3-7.1209 OF THE REDONDO

BEACH MUNICIPAL CODE REGARDING PARKING ZONES AND DELETING IN ITS ENTIRETY SECTION 3-7-1210 REGARDING TAXICAB STANDS, FOR INTRODUCTION AND FIRST READING

EXECUTIVE SUMMARY
Recent changes to California Vehicle Code (CVC) Section 22500 now prohibit the stopping, standing, or parking of any vehicle 20 feet on approach of any marked or unmarked crosswalk. The parking restriction is reduced to 15 feet on approach where a curb extension (bulbout) is present. The intent of this restriction is to improve motorists’ visibility of pedestrians using crosswalks. Effective January 1, 2025, these prohibited parking areas, sometimes referred to as “daylight zones,” do not need to be marked by a painted curb or by signage in order to be enforceable. This is a similar marking approach to the statewide prohibition of parking on the street near a fire hydrant. The Redondo Beach Municipal Code (RBMC) currently restricts citywide parking 25 feet on approach to a crosswalk (30 feet in the Central Traffic District), which is enforceable when marked. Lack of resources have prevented the City from marking every approach in the City, leaving many of these locations unmarked and unenforceable.

In anticipation of the new state law, staff is recommending a change to the RBMC to comply with the less restrictive state requirements. Additional amendments to the City’s parking restrictions, found in Title 3, Chapter 7, Article 12, are also being recommended to update and remove conflicting red curb language to reflect current and best practices for discretionary curb markings. The proposed changes also take advantage of a state law allowing a reduction in the mandatory restricted parking space adjacent to fire hydrants.

It should be noted that City resources are not sufficient to mark and enforce every “daylight zone” prohibited for parking by state law. Accordingly, staff plan to evaluate the intersections in the City with a safety concern history and implement curb markings and signage as resources permit and the benefits intended by the new law have the most positive impact.

BACKGROUND
Several modifications to the City’s existing parking ordinances are needed to make it consistent with CVC 22500. CVC 22500 now prohibits parking or stopping 20 feet in advance of any legal crosswalk on the approach side, or 15 feet if a curb extension is present. Cities may install amenities such as bicycle parking corrals or bioswales within the 15 feet daylighting zone, so long as clear sight lines are maintained. Note that daylighting zones are not required on the departure side of

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are maintained. Note that daylighting zones are not required on the departure side of crosswalks/intersections but can be added based on site-specific circumstances and engineering judgement.

Currently, RBMC 3-7.1203 mandates the painting or marking of “no parking” zones within 30 feet of any intersection in the Central Traffic District (area bound by Beryl Street, the coast, Ruby Street, and PCH), or within 25 feet of all other intersections and crosswalks. In practice, the City has not had the resources to implement or enforce this section of the RBMC, which is more restrictive than state law.

Additionally, due to the high demand for parking in the City’s Central Traffic District, enforcement of the City’s restrictive policy has not been a priority for residents. The proposed revisions to the RBMC would align the City’s Code with state law and eliminate regulatory confusion. Additionally, the changes would reduce the City’s burden to mark, for enforceability purposes, the minimum lengths of the no parking zones.

Staff also recommends revisions to other subsections of RBMC Title 3, Chapter 7, Article 12 to update and remove conflicting red curb language to reflect best practices for discretionary curb markings. The proposed changes also take advantage of a state law allowing a reduction of mandatory restricted parking adjacent to a fire hydrant. Engineering staff consulted with the Fire Department, which tested various lengths of no parking zones around fire hydrants. The Fire Department determined that a 20-foot no parking zone, running 10 feet either side of a fire hydrant, is sufficient for their operations. Correspondence between Public Works and Fire Departments can be found in attachments within the PWSC Administrative Report. If the proposed ordinance is adopted, the fire hydrant no parking zone would be reduced from the default State minimum of 30 feet to a locally adopted minimum of 20 feet, allowing potential gains in unrestricted curb parking. Therefore, staff is recommending a municipal code modification to allow for this change. Also, staff recommends removing the taxicab stand section of RBMC (3-7.1210) due to societal shifts around ride-hailing and the lack of known and active taxicab zones within the City.

Although marking of daylight zones would aid in regulatory compliance, there is no plan to mark the daylight spaces citywide. Given the limitation of resources, staff intends to prioritize the consideration of installation of red curb at locations with a history of problematic vehicle/pedestrian patterns. Areas that will be evaluated include:
· School zone (painted yellow) crosswalks
· Signalized intersections
· Crosswalks with visibility challenges
· Crosswalks across multiple lanes of traffic in the same direction · Crosswalks with higher pedestrian crossing volumes
· Crosswalks determined by engineering staff to experience higher driver/pedestrian conflicts based on engineering judgement, crash history, and/or resident/RBPD feedback Given the City’s lack of resources, only the critical areas that would most benefit from new new street markings will receive red curb installation.

October 1, 2024 City Council Discussion
Staff presented the updated CVC 22500 (also known as AB 413) to the City Council at their October 1, 2024 meeting, along with recommended changes to the RBMC to make it consistent with CVC, clean up obsolete language, and reflect best practices with respect to parking restrictions identified by marked curbs and/or signage. Due to justifiable concerns related to loss of on-street parking, the City Council directed staff to explore the feasibility of an engineering safety study that could justify a

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City Council directed staff to explore the feasibility of an engineering safety study that could justify a Citywide reduction to the daylighting zone. CVC 22500(n)(1)(B)(i) allows jurisdictions to adopt a different intersection daylighting distance, if justified by established traffic safety standards. Staff has explored this possibility, but did not find any practical or affordable way to carry this forward in a manner that would provide certainty regarding reduction to the impacts to parking that result from the new state law. More detail on that research follows.

When discussed at the October 1, 2024 City Council meeting, staff was directed to get clarification on National Association of City Transportation Officials (NACTO) concerns with blanket statewide daylighting and its potential to create highway-like “clear zones.” Staff was also directed to explore the feasibility of an engineering study that, if adopted, could reduce the no parking zone from the CVC-specified 20 feet to a distance less than that. CVC 22500(n)(1)(B)(i) allows jurisdictions to adopt a different distance, if justified by established traffic safety standards. If a different distance daylighting zone is adopted, each location must be marked with red curb or posted with signage.

Basis of Vehicle Code Daylighting Zones (AB 413) in California Driver licenses, driving regulations, and the form and placement of traffic control devices (e.g., signs, striping, signals) are a matter of statewide concern, which typically preempts local agencies from adopting traffic regulations that differ substantially from state law. This is enshrined through regulations like the CVC. Most state vehicle codes were historically based on the United States Uniform Vehicle Code (UVC), which serves as a recommended guide for states. Early versions of the UVC prohibited parking within 25 feet of intersections, which is the likely source of the same prohibition in the City’s current regulations found in RBMC Section 3-7.1203. The current UVC prohibits parking within 20 feet of a crosswalk. Most state vehicle codes originate from the UVC, which is why 43 states currently have some form of daylighting in their vehicle codes, typically ranging from 20-30 feet. However, the CVC was not initially drafted to align with the UVC, so AB 413 brought the CVC into alignment with the UVC. In addition, the federal Manual on Uniform Traffic Control Devices (MUTCD), to which the California MUTCD must be substantially compliant, cites 20- 30-foot daylighting minimums per UVC.

NACTO Discussion
During the State Senate Rules Committee’s Third Reading of AB 413, the NACTO provided comments and guidance for daylighting zones. Generally, NACTO recommends daylighting within 20 -25 feet of the intersection. However, NACTO expressed concerns that a prescriptive statewide policy would be contrary to their guidance. NACTO provided a letter to the Rules Committee stating their daylighting recommendation “is intended to promote the practice of daylighting but is not intended as a blanket requirement.” Especially for topics as contextually specific as daylighting and curbside use, there might be some unintended consequences of directly copying that relatively simple guidance into law. For example, a City may determine that less than 10 feet - or more than 20 feet - is appropriate for a specific intersection.” NACTO discourages agencies from creating much longer highway-like clear zones that could decrease safety by creating wide lanes and generous corners that cause drivers to speed through intersections.

City staff reached out to NACTO for clarification on their comments, and their attached comments clarify that NACTO supports the adoption of AB 413 and implementing strategies to improve visibility between people walking and driving by prohibiting parking within approximately 20 feet of a marked or unmarked crosswalk. NACTO’s letter to the State Senate advocated for cities to preserve their authority to use engineering judgement to determine local best practices, such as slightly smaller

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authority to use engineering judgement to determine local best practices, such as slightly smaller distances at locations with curb extensions or very slow neighborhood streets (e.g., 95th percentile speeds under 25 mph), or slightly longer distances on streets with parking-protected bicycle lanes.

City staff determined that “highway-like clear zone” conditions as described by NACTO likely apply to daylighting zones that exceed 30 feet, and within the context of larger intersections or wider streets with large corner radii. These conditions are not common in Redondo Beach. NACTO’s support of local authority to shorten daylight zones for specific conditions was carried forward in the law and will underpin the City’s authority to mark curbs differently from state law, when specific field conditions warrant it, as determined on a case-by-case basis.

Town of Truckee
During the October 1, 2024 City Council meeting, the City Council mentioned that the Town of Truckee was considering adopting a different daylighting distance. Subsequently, City staff reached out to their counterparts in the City of Truckee, a mountainous rural town near Lake Tahoe. Truckee does not have land uses or parking issues comparable to those found in Redondo Beach, with most of their streets lacking curbs, street parking, and sidewalks. The exception is the city’s downtown area, where intersections do include sidewalks, crosswalks, curbs, and street parking. Most of those intersections have been built with curb extensions. Most parking spaces in Truckee’s downtown area are also marked with parking T’s, providing strong definition to legal parking spaces that unmarked curbs do not provide. Because of the limited number of locations, and the particular existing infrastructure, Truckee is currently proposing an ordinance to adopt a different daylighting distance per CVC 22500(n)(1)(B)(i). Truckee drafted this ordinance with internal staff resources, rather than engaging an external engineering consultant. The latest available information indicates Truckee staff proposes to reduce the daylighting zone at locations with curb extensions from 15 feet to 5 feet, but is not proposing different daylighting zones at other locations. Redondo Beach staff do not believe Truckee’s approach could be effectively implemented in Redondo Beach as nearly all of Truckee’s intersections where parking is present, and pedestrian activity is expected, are enhanced with curb extensions. The impact of Truckee’s proposed ordinance would only impact a total of 17 parking spaces. Redondo Beach staff is not aware of any other jurisdictions that are publicly considering the adoption of shorter daylighting distances on a citywide basis.

Potential Engineering Study for Redondo Beach
As mentioned in CVC 22500(n)(1)(B)(i), local California agencies like Truckee and Redondo Beach are allowed to establish, by ordinance, a different daylighting distance if justified by established traffic safety standards. The City of Redondo Beach has thousands of approaches to be reviewed for any parking benefit to be gained. A defensible engineering decision would then be required to reduce the daylighting zone. While this approach may be useful on a case-by-case basis, a citywide effort is beyond available resources, and the potential benefit to parking is uncertain.

City staff contacted four transportation engineering firms, but none of these firms were willing to author a Citywide engineering study, stamped by a licensed Civil and/or Traffic Engineer, justifying a shorter daylighting distance as safe and legally defensible. Because of this, staff does not recommend pursuing a study that shortens the default Citywide daylighting distance, as this could create legal uncertainty for the City.

In addition, even if a different daylighting length were adopted, CVC 22500(n)(1)(B)(ii) mandates that each shorter (or longer) zone be marked with paint or signs. Otherwise, the statewide default of 20 feet would remain in effect. The City does not have the resources to paint red curbs at every intersection. In addition, a shorter zone does not necessarily recapture parking spaces. Staff has

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intersection. In addition, a shorter zone does not necessarily recapture parking spaces. Staff has provided a cursory analysis of various intersections in the City, estimating the potential number of parking spaces that could be recaptured if the City adopted a daylighting distance that is half of what’s prescribed in the CVC. The actual number of spaces is subject to the size and manner of vehicles parked at each location. Many of these locations already have approximately 20 feet of red curb painted at approaches. Staff estimates that less than half of the estimated AB 413-related parking space losses could be gained back if a 10-foot daylighting distance were adopted.

COORDINATION
Coordination of this report and proposed revisions to RBMC took place within the Public Works Department, Fire Department, Police Department Parking Enforcement Unit, and the City Attorney’s Office. Communications also took place with engineers at other California cities, NATCO officials, and transportation engineering firms. Staff also discussed AB 413 with the Public Works and Sustainability Commission.

FISCAL IMPACT
There is no direct cost to modify the RBMC. The cost to install red curbs at critical intersections to aid motorists in compliance with CVC 22500 would be paid for from the Public Works Department’s annual operating budget as part of staff’s regular duties. When installed, staff would utilize GISbased technologies to implement and track new red curb installations related to AB 413 and improve the efficiency and accuracy of the City’s red curb inventory.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Ord - No. 3285-24 Amending Chapter 7, Article 3, Sections 3-7.1201, 3-7.1203, 3-7.1204, 3-

7.1205, 3-7.1206, 3-7.1207, 3-7.1208 And 3-7.1209 of the Redondo Beach Municipal Code Regarding Parking Zones and Deleting in its Entirety Section 3-7-1210 Regarding Taxicab Stands · Redline Revisions - Redondo Beach Municipal Code Section 3-7.12 · Administrative Report - City Council, October 1, 2024 · Administrative Report - Public Works & Sustainability Commission, March 25, 2024 · Email - NACTO Clarification Statement on Daylighting
· Overview - Redondo Beach Intersections with Default 20-feet under CVC 22500 · Daylighting Distance Comparison from Other States, California State Library

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Administrative
Report
H.7., File # 24-1816 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE
INTRODUCE BY TITLE ONLY ORDINANCE NO. 3285-24, AN ORDINANCE OF THE CITY OF REDONDO BEACH, CALIFORNIA, AMENDING CHAPTER 7, ARTICLE 3, SECTIONS 3-7.1201, 3-

7.1203, 3-7.1204, 3-7.1205, 3-7.1206, 3-7.1207, 3-7.1208, AND 3-7.1209 OF THE REDONDO

BEACH MUNICIPAL CODE REGARDING PARKING ZONES AND DELETING IN ITS ENTIRETY SECTION 3-7-1210 REGARDING TAXICAB STANDS, FOR INTRODUCTION AND FIRST READING

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are maintained. Note that daylighting zones are not required on the departure side of crosswalks/intersections but can be added based on site-specific circumstances and engineering judgement.

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City Council directed staff to explore the feasibility of an engineering safety study that could justify a Citywide reduction to the daylighting zone. CVC 22500(n)(1)(B)(i) allows jurisdictions to adopt a different intersection daylighting distance, if justified by established traffic safety standards. Staff has explored this possibility, but did not find any practical or affordable way to carry this forward in a manner that would provide certainty regarding reduction to the impacts to parking that result from the new state law. More detail on that research follows.

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authority to use engineering judgement to determine local best practices, such as slightly smaller distances at locations with curb extensions or very slow neighborhood streets (e.g., 95th percentile speeds under 25 mph), or slightly longer distances on streets with parking-protected bicycle lanes.

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intersection. In addition, a shorter zone does not necessarily recapture parking spaces. Staff has provided a cursory analysis of various intersections in the City, estimating the potential number of parking spaces that could be recaptured if the City adopted a daylighting distance that is half of what’s prescribed in the CVC. The actual number of spaces is subject to the size and manner of vehicles parked at each location. Many of these locations already have approximately 20 feet of red curb painted at approaches. Staff estimates that less than half of the estimated AB 413-related parking space losses could be gained back if a 10-foot daylighting distance were adopted.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Ord - No. 3285-24 Amending Chapter 7, Article 3, Sections 3-7.1201, 3-7.1203, 3-7.1204, 3-

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ORDINANCE NO. 3285-24

PARKING RE TAXICAB STANDS
PAGE NO. #1
ORDINANCE NO. 3285-24

AN ORDINANCE OF THE CITY OF REDONDO BEACH,
CALIFORNIA, AMENDING CHAPTER 7 ARTICLE 3, SECTIONS
3-7.1201, 3-7.1203, 3-7.1204, 3-7.1205, 3-7.1206, 3-7.1207, 3-

7.1208 AND 3-7.1209 OF THE REDONDO BEACH MUNICIPAL

CODE REGARDING PARKING ZONES AND DELETING IN ITS
ENTIRETY SECTION 3-7-1210 REGARDING TAXICAB
STANDS
WHEREAS, the California Vehicle Code, as updated via AB 413, prohibits stopping, standing, or parking 20 feet in advance of any crosswalk statewide (or 15 feet with a curb extension); and
WHEREAS, existing Redondo Beach Municipal Code contains provisions that require the City to mark no stopping/standing zones in excess of California Vehicle Code requirements; and WHEREAS, on March 25, 2024, the Public Works and Sustainability Commission recommended changes to the Redondo Beach Municipal Code to align the Municipal Code with California Vehicle Code and current practices; and
WHEREAS, the City of Redondo Beach desires to update its Municipal Code to reflect current local/state/federal practices, California Vehicle Code, and traffic engineering principles; and
WHEREAS, the City of Redondo Beach desires to improve crosswalk visibility, traffic safety, and public safety via the implementation of AB 413 and compliance with the California Vehicle Code; and
WHEREAS, the City of Redondo Beach also desires to make minor amendments to certain sections and to delete an obsolete section regarding taxicab stands.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. Chapter 7, Article 3, Section 3-7.1201 of the Redondo Beach Municipal Code is amended to read as follows:
“Section 3-7.1201 Application of Provisions.

The provisions of this article prohibiting the stopping, standing or parking of a vehicle shall apply at all times or at those times specified in this article except when it is necessary to stop a vehicle to avoid conflict with other traffic or in compliance with the directions of a police officer or official traffic control devices.

The provisions of this article imposing a time limit on standing or parking shall not relieve any person from the duty to observe other and more restrictive provisions prohibiting or limiting the standing or parking of vehicles in specified places or at specified times.” 264
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PAGE NO. #2
SECTION 2. Chapter 7, Article 3, Section 3-7.1203 of the Redondo Beach Municipal Code is amended to read as follows:
“Section 3-7.1203 No parking zones: Designated.

The City Manager and/or their designee shall appropriately sign or mark the following place, and when so signed or marked, no person shall stop, stand or park a vehicle in any of said place: (a) Within ten (10) feet of any fire hydrant.”
SECTION 3. Chapter 7, Article 3, Section 3-7.1204 of the Redondo Beach Municipal Code is amended to read as follows:
“Section 3-7.1204 No parking zones: Authorization to establish.

Appropriate signs or marks indicating that the stopping, standing or parking of vehicles is there unlawful shall be installed at any locations whenever the City Manager and/or their designee shall have determined, with references to any particular location, that vehicles not in motion could create traffic congestion, visibility, and / or safety issues.” SECTION 4. Chapter 7, Article 3, Section 3-7.1205 of the Redondo Beach Municipal Code is amended to read as follows:
“Section 3-7.1205 Curb zones: Time limits: Markings.
(a) Passenger loading zones. The City Manager and/or their designee is hereby authorized to establish passenger loading zones with white-colored curbs and/or associated signage in accordance with current Federal and State accessibility standards at such places as they determine that the adjacent land uses could generate a substantial volume of passenger loading activity as part of their normally permitted operations. (b) Commercial loading zones. The City Manager and/or their designee is hereby authorized to establish commercial loading zones with yellow-colored curbs and/or associated signage at such places as they determine that the adjacent land uses could generate a substantial volume of goods loading activity as part of their normally permitted business operations.
(c) Short-term parking zones. The City Manager and/or their designee is hereby authorized to establish time-limited short-term parking zones with green-colored curbs and/or associated signage in places where they determine that the adjacent land uses could generate a substantial volume of high turnover short-term parking. (d) No parking zones. The City Manager and/or their designee is hereby authorized to establish zones with red curb and/or signage at places where the stopping, standing, or parking of vehicles is prohibited by the provisions of Sections 3-7.1203 and 3-7.1204 of this article or by the California Vehicle Code, including but not limited to Vehicle Code Section 22500.
(e) Accessible parking zones. The City Manager and/or their designee is hereby authorized to establish accessible parking zones with colored curbs, markings, and signage in 265
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PARKING RE TAXICAB STANDS
PAGE NO. #3
accordance with current Federal and State accessibility standards for the exclusive use of persons with valid Disabled Person placards and/or Disabled Person License Plates. (f) Time limits. The time limits and effective hours of white, yellow, green, and red curb zones shall be as follows:
(1) No person shall stop, stand, or park a vehicle in any white curb passenger loading zone except for the purpose of loading or unloading passengers and their personal baggage, and then only for the time necessary therefor, and in no event for more than five minutes, or a different time limit and/or number of days if posted with appropriate signage and/or markings.
(2) No person shall stop, stand, or park a vehicle between the hours of 7:00 a.m. and 6:00 p.m. on any day, except Sundays and legal holidays, in a yellow curb loading zone, except that commercial vehicles may stop or stand for the purpose of loading or unloading material goods, and then only for the time necessary therefor, but in no event for more than twenty minutes or a different time limit and/or number of days if posted with appropriate signage and/or markings.
(3) No person shall stop, stand, or park a vehicle between the hours of 7:00 a.m. and 6:00 p.m. on any day in a green curb zone, except that passenger vehicles may park in green curb zones for a period of time not to exceed 20 minutes between the hours of 7:00 a.m. and 6:00 p.m. or a different time limit and/or number of days if posted with appropriate signage and/or markings.
(4) No person shall stop, stand, or park a vehicle at any time in any red curb "No Standing" zone or portion of a street posted with signs reading "No Stopping, Standing, or Parking at Any Time"; provided, however, a bus may stop in such a zone or portion of a street marked or designated as a bus zone.
(5) No person shall stop, stand, or park a vehicle at any time in any blue curb accessible parking zone unless the vehicle displays either one of the distinguishing license plates or a placard issued pursuant to Sections 5007, 22511.5 or 22511 of the Vehicle Code of the State.
(g) Stencil markings. Yellow curb loading zones, green curb parking zones, and blue curb accessible parking zones shall be marked with stencils as follows:
(1) Yellow curb loading zones: "Commercial Loading Only – [As Determined] Minute Limit” if different than 20 minutes"; and
(2) Green curb parking zones: "Passenger Cars Only - [As Determined] Minute Limit"; and
(3) Blue curb accessible parking zones shall be marked in accordance with current State and Federal accessible parking space standards.”
SECTION 5. Chapter 7, Article 3, Section 3-7.1206 of the Redondo Beach Municipal Code is amended to read as follows:
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PAGE NO. #4
“Section 3-7.1206 Curb zones: Service charges.

In addition to the authority granted to the City Manager for the installation of curb zones, on their own investigation the City Manager and/or their designee is further authorized and empowered to accept applications from private persons for the installation of colored curb zones and to require a service charge for the investigation and installation of the curb zones applied for in accordance with adopted policies relevant to the requested curb zone.” SECTION 6. Chapter 7, Article 3, Section 3-7.1207 of the Redondo Beach Municipal Code is amended to read as follows:
“Section 3-7.1207 Loading and unloading.
(a)
Permitted vehicles. Permission granted to stop or stand a vehicle for the purposes of loading or unloading materials shall apply only to commercial deliveries and to the delivery or pickup of parcels and postage.
(b)
Materials: Time limits. Permission granted to stop or stand a vehicle for the purposes of loading or unloading materials shall apply only to commercial vehicles and shall not extend beyond the time necessary therefor and in no event for more than 20 minutes, or a different time limit if posted with appropriate signage and/or markings. (c)
Passengers: Time limits. Permission granted to stop or park for purposes of loading or unloading passengers shall include the loading or unloading of personal baggage, but shall not extend beyond the time necessary therefor and in no event for more than five minutes, or a different time limit if posted with appropriate signage and/or markings. (d)
Abuse of privileges granted. Within the total time limits specified, the provisions of this section shall be enforced so as to accommodate necessary and reasonable loading or unloading but without permitting abuse of the privileges granted.” SECTION 7. Chapter 7, Article 3, Section 3-7.1208 of the Redondo Beach Municipal Code is amended to read as follows:
“Section 3-7.1208 Alley parking.

No person shall stop, stand or park a vehicle for any purpose other than the immediate loading or unloading of persons or materials in any alley.” SECTION 8. Chapter 7, Article 3, Section 3-7.1209 of the Redondo Beach Municipal Code is amended to read as follows:
“Section 3-7.1209 Bus zones.
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ORDINANCE NO. 3285-24

PARKING RE TAXICAB STANDS
PAGE NO. #5
The City Manager and/or their designee is hereby authorized to establish bus zones for the loading and unloading of buses and to determine the locations thereof as follows:
(a) Bus defined. "Bus", as used in this section, shall mean any motorbus, motor coach, trolley bus, omnibus, passenger stage or similar vehicle using either a self-contained source of power or power obtained from another source, such as an overhead trolley system not operated upon fixed tracks or rails, and primarily designed for the transportation of more than seven passengers, including the driver, and used, either directly or indirectly, as a common carrier of passengers.
(b) Length of zones. Lengths of bus zones shall be determined based on current or expected bus zone demand, expected bus vehicle types, and location-specific conditions. (c) Curb markings. The City Manager and/or their designee shall authorize the painting of red curb stenciled with white letters, "No Standing", together with the words "Bus Zone" upon the tops of all curbs and places specified as bus zones. (d) Use restricted. No person shall stop, stand or park any vehicle except a bus in a bus zone.”
SECTION 7. Chapter 7, Article 3, Section 3-7.1210 of the Redondo Beach Municipal Code is entitled, “Taxicab stands” is hereby deleted in its entirety.

SECTION 8. Any provisions of the Redondo Beach Municipal Code, or appendices thereto, or any other Ordinances of the City inconsistent herewith, to the extent of such inconsistencies and no further, are hereby repealed.

SECTION 9. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

SECTION 10. This Ordinance shall be published in the official newspaper of said City, and same shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.
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ORDINANCE NO. 3285-24

PARKING RE TAXICAB STANDS
PAGE NO. #6
PASSED, APPROVED AND ADOPTED this 3
rd day of December, 2024.
____________________________
James A. Light, Mayor
APPROVED AS TO FORM: ATTEST:
____________________________ ____________________________ Michael W. Webb, City Attorney Eleanor Manzano, CMC, City Clerk 269
ORDINANCE NO. 3285-24

PARKING RE TAXICAB STANDS
PAGE NO. #7

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF REDONDO BEACH )
I, Eleanor Manzano, City Clerk of the City of Redondo Beach, California, do hereby certify that Ordinance No. 3285-24 was introduced at a regular meeting of the City Council held on the 19th day of November, 2024, and approved and adopted by the City Council of the City of Redondo Beach, California, at a regular meeting of said City Council held on the 3 rd day of December, 2024,
and thereafter signed and approved by the Mayor and attested by the City Clerk, and that said Ordinance was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
Eleanor Manzano, CMC
City Clerk
270
§ 3-7.1201Application of provisions.

No person shall stop, stand or park a vehicle within any parkway. (§ 53, Ord. 1539)
§ 3-7.1203No parking zones: Designated.

The City Manager and/or their designee shall appropriately sign or mark the following places, and when so signed or marked, no person shall stop, stand or park a vehicle in any of said places:
(a)
At any place within thirty (30′) feet of an intersection in the Central Traffic District or in any business district, except that a bus may stop at a designated bus stop; (b)
Within twenty-five (25′) feet of the approach to the nearest line of crosswalk, except that a bus may stop at a designated bus stop but not within five (5′) feet of said nearest line of a cross-walk;
(c)
In front of any police station or fire station, except that authorized police or fire vehicles may stand in any such place; or
(a)
Within ten (10) feet of any fire hydrant.
(d)
Within twenty-five (25′) feet of any traffic signal, boulevard stop sign or official electrical flashing device, except that a bus may stop at a designated bus stop but not within five (5′) feet of any traffic signal, boulevard stop sign or official electrical flashing device.
(§ 54, Ord. 1539)
271
§ 3-7.1204No parking zones: Authorization to establish.

Appropriate signs or marks indicating that the stopping, standing or parking of vehicles is there unlawful shall be installed at places and points specified in this articleany locations whenever the City Manager and/or their designee shall have determined, with references to any particular location, that vehicles not in motion could create traffic congestion, visibility, and / or safety issues. would tend to create traffic congestion or to increase traffic hazard, and when such signs or marks are in place, no person shall stop, stand or park any vehicle in violation of the instructions thereof:
(a)
At any place within 150 feet of an intersection;
(b)
Within twenty-five (25′) feet of a point where the nearest rail of the track of a common carrier crosses the curb line of a street at any place within a block; (c)
At any place where the curb line of a street is in such proximity to the rails of a common carrier that any portion of a vehicle parked there would be within the path of the cars of such carrier or so close thereto as to constitute a hazard; (d)
Within ten (10′) feet of a driveway to any regularly established bus depot or bus terminal;
(e)
Within five (5′) feet of any driveway not more than twenty (20′) feet in width; (f)
Upon any viaduct or upon the approach to any viaduct or bridge; (g)
Upon any street or portion thereof where, because of the narrowness of the street or the unusual characteristics thereof, parking would create a hazard to life or property or a serious obstruction to vehicular or pedestrian passage; and (h)
At any place where necessary in order to eliminate dangerous traffic hazards. (§ 55, Ord. 1539)
§ 3-7.1205Curb zones: Time limits: Markings.
(a)
272
Passenger loading zones. The City Manager and/or their designee is hereby authorized to establish white passenger loading zones with white-colored curbs and/or associated signage in accordance with current Federal and State accessibility standards at such places as he they determines the volume of passenger loading to be such as to result in double line parking or to result in a denial of access to propertythat the adjacent land uses could generate a substantial volume of passenger loading activity as part of their normally permitted operations.
(b)
Material Commercial loading zones. The City Manager and/or their designee is hereby authorized to establish yellow commercial loading zones with yellowcolored curbs and/or associated signage at such places as he they determines the amount or type of loading and unloading of materials in relation to the demand for curb parking to be such as to cause double line parking or to result in a denial of access to propertythat the adjacent land uses could generate a substantial volume of goods loading activity as part of their normally permitted business operations.
(c)
Limited Short-term parking zones. The City Manager and/or their designee is hereby authorized to establish green time-limited short-term parking zones with green-colored curbs and/or associated signage in places where he determines that a heavy volume of short time parking makes it necessary to restrict parking time to 15 minutes in order to avoid or reduce traffic congestion or to secure for the public an economic distribution of the use of available curb spacethey determine that the adjacent land uses could generate a substantial volume of high turnover short-term parking.
(d)
No parking zones. The City Manager and/or their designee is hereby authorized to establish red "No Standing" zones or to post signs reading "No Stopping, Standing, or Parking at Any Time"zones with red curb and/or signage at places where the stopping, standing, or parking of vehicles is prohibited by the provisions of Sections 3-7.1203 and 3-7.1204 of this article or by the California Vehicle Code, including but not limited to Vehicle Code Section 22500. (e)
Handicapped Accessible parking zones. The City Manager and/or their designee is hereby authorized to establish blue accessible parking zones with colored curbs, markings, and signage in accordance with current Federal and 273
State accessibility standards for the exclusive use of physically handicapped persons with valid Disabled Person placards and/or Disabled Person License Plates. at places where he determines it necessary to provide reasonable access to property.
(f)
Time limits. The time limits and effective hours of white passenger loading zones, yellow loading zones, green parking zones, and red "No Parking" zoneswhite, yellow, green, and red curb zones shall be as follows:
(1)
No person shall stop, stand, or park a vehicle in any white curb passenger loading zone except for the purpose of loading or unloading passengers and their personal baggage, and then only for the time necessary therefor, and in no event for more than three five minutes, or a different time limit and/or number of days if posted with appropriate signage and/or markings. (2)
No person shall stop, stand, or park a vehicle between the hours of 7:00 a.m. and 6:00 p.m. on any day, except Sundays and legal holidays, in a yellow curb loading zone, except that commercial vehicles may stop or stand for the purpose of loading or unloading passengers and their personal belongingsmaterial goods, and then only for the time necessary therefor, but in no event for more than three twenty minutes or a different time limit and/or number of days if posted with appropriate signage and/or markings. (3)
No person shall stop, stand, or park a vehicle between the hours of 7:00 a.m. and 6:00 p.m on any day in any a green curb zone, on any day except that passenger vehicles may park in green curb zones for a period of time not to exceed 15 20 minutes between the hours of 7:00 a.m. and 6:00 p.m, or a different time limit and/or number of days if posted with appropriate signage and/or markings. The provisions of this subsection shall not apply between the hours of 6:00 p.m. and 7:00 a.m. of the following day.
(4)
No person shall stop, stand, or park a vehicle at any time in any red curb "No Standing" zone or portion of a street posted with signs reading "No Stopping, Standing, or Parking at Any Time"; provided, however, a bus may stop in such a zone or portion of a street marked or designated as a bus zone. (5)
274
No person shall stop, stand, or park a vehicle at any time in any blue curb handicapped accessible parking zone unless the vehicle displays either one of the distinguishing license plates or a placard issued pursuant to Sections 5007, 22511.5 or 22511 of the Vehicle Code of the State.
(g)
Stencil markings. White passenger loading zones, yYellow curb loading zones, and green curb parking zones, and blue curb accessible parking zones shall be marked with stencils as follows:
(1)
White passenger loading zones: "Passenger Loading Only"; (21)
Yellow curb loading zones: "Commercial Loading Only – [As Determined] Minute Limit” if over different than three 20 minutes"; and (32)
Green curb parking zones: "Passenger Cars Only - 15 or 30[As Determined] Minute Limit"; and
(43)
Blue curb handicapped accessible parking zones: "Physically Handicapped Only." In addition to blue paint, the space may also be indicated by a sign consisting of a profile view of a wheelchair with an occupant in white on a blue background.
(§ 56, Ord. 1539 c.s., as amended by §§ 1, 2, and 3, Ord. 2202 c.s., eff. April 6, 1977, and § 1(21), Ord. 2844 c.s., eff. November 4, 1999) shall be marked in accordance with current State and Federal accessible parking space standards. § 3-7.1206Curb zones: Service charges.

In addition to the authority granted to the City Manager for the installation of curb zones, on his their own investigation the City Manager and/or their designee is further authorized and empowered to accept applications from private persons for the installation of yellow, white, blue, red, and greencolored curb zones and to require a service charge for the investigation and installation of the curb zones applied for in accordance with adopted policies relevant to the requested curb zone. Applications shall contain the information and be governed as to fees and refunds upon the following terms and conditions:
(a)
Applications: Form. Each application for the establishment of a yellow, white, or green curb zone shall be in writing upon a form furnished by the City Manager and shall be accompanied by the service charge required by this section. Each 275
application shall set forth the name and address of the applicant, the desired location of the zone, the reason for which the zone is needed, and such other information as the City Manager may require. Each application shall be signed by a responsible person at the place of business requesting the curb space. (b)
Applications: Investigations. Upon the filing of each application for a yellow, white, or green curb zone, the City Manager shall cause to be made, upon the basis of traffic engineering principles as contained in the official Traffic Manual, an investigation of the need of such curb zone.
(c)
Nonrestriction of uses. Nothing contained in this section shall be construed as permitting or granting to any person any privilege to stop or stand any vehicle for the purpose of loading or unloading passengers or materials to the exclusion of any other person.
(§ 57, Ord. 1539 c.s.)
§ 3-7.1207Loading and unloading.
(a)
Permitted vehicles. Permission granted to stop or stand a vehicle for the purposes of loading or unloading materials shall apply only to commercial deliveries and to the delivery or pickup of express and parcel post and United States mailparcels and postage.
(b)
Materials: Time limits. Permission granted to stop or stand a vehicle for the purposes of loading or unloading materials shall apply only to commercial vehicles and shall not extend beyond the time necessary therefor and in no event for more than 20 minutes, or a different time limit if posted with appropriate signage and/or markings.
(c)
Passengers: Time limits. Permission granted to stop or park for purposes of loading or unloading passengers shall include the loading or unloading of personal baggage, but shall not extend beyond the time necessary therefor and in no event for more than three five minutes, or a different time limit if posted with appropriate signage and/or markings.
(d)
Abuse of privileges granted. Within the total time limits specified, the provisions of this section shall be enforced so as to accommodate necessary and 276
reasonable loading or unloading but without permitting abuse of the privileges granted.
(§ 58, Ord. 1539 c.s.)
§ 3-7.1208Alley parking.

No person shall stop, stand or park a vehicle for any purpose other than the immediate loading or unloading of persons or materials in any alley. (§ 59, Ord. 1539 c.s.)
§ 3-7.1209Bus zones.

The City Manager and/or their designee is hereby authorized to establish bus zones for the loading and unloading of buses and to determine the locations thereof as follows:
(a)
Bus defined. "Bus", as used in this section, shall mean any motorbus, motor coach, trolley bus, omnibus, passenger stage or similar vehicle using either a self-contained source of power or power obtained from another source, such as an overhead trolley system not operated upon fixed tracks or rails, and primarily designed for the transportation of more than seven passengers, including the driver, and used, either directly or indirectly, as a common carrier of passengers.
(b)
Length of zones. No bus zone shall exceed fifty (50′) feet in length; provided, however, when satisfactory evidence has been presented to the City Manager showing the necessity therefor, the City Manager may authorize zones in such places not to exceed 125 feet in any blockLengths of bus zones shall be determined based on current or expected bus zone demand, expected bus vehicle types, and location-specific conditions.
(c)
Curb markings. The City Manager and/or their designee shall authorize the painting of a red linered curb stenciled with white letters, "No Standing", together with the words "Bus Zone" upon the tops of all curbs and places specified as bus zones.
(d)
Use restricted. No person shall stop, stand or park any vehicle except a bus in a bus zone.
(§ 60, Ord. 1539 c.s.)
§ 3-7.1210Taxicab stands.
277
(a)
Designation. The City Manager may designate as a taxicab zone any taxicab stand established in accordance with the provisions of this Code. Such stand shall be used for the parking of taxicabs while awaiting employment. (b)
Permit required. Any taxicab zone so designated shall be occupied only by the holder of the stand permit and shall be occupied only during such hours of the day as may be specified in such permit by the City Manager. (c)
Length of stand. No taxicab zone shall exceed sixty (60′) feet in length. (d)
Curb markings. The City Manager shall cause each taxicab zone to be marked either by the painting of a white line on the top of the curb or place stenciled with the words "No Standing" or by appropriate pedestal signs. (e)
Use restricted. No person shall stop, stand or park any vehicle except a taxicab in any taxicab zone.
(f)
Fee. Rental for taxicab stands shall be Seven and 50/100ths ($7.50) Dollars per month, payable to the City Treasurer each month in advance. (§ 61, Ord. 1539 c.s.)
§ 3-7.1211Authority of VIP's: issuance of certain parking citations.
(a)
Definition. Volunteers in policing or "VIP's" are civilian, non-sworn volunteer citizens who assist members of the police department with specified functions as authorized by the Chief of Police.
(b)
Authority. Volunteers in policing or "VIP's" are hereby authorized to issue parking citations to vehicles which are parked in violation of Vehicle Code Sections 22507.8(a), 22507.8(b) and 22507.8(c) and to perform such other related duties as may be required and authorized by the Chief of Police. (§ 1, Ord. 2779 c.s., eff. October 3, 1996)
278
1 Council Action Date: October 1, 2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE

DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED CHANGES TO THE

REDONDO BEACH MUNICIPAL CODE RESULTING FROM PASSAGE OF ASSEMBLY BILL 413 “DAYLIGHTING BILL” AND DIRECTION TO STAFF REGARDING FUTURE

ORDINANCE CHANGES REGARDING THE ADDITION OF A DRIVEWAY PARKING

PERMIT PROGRAM
INTRODUCE BY TITLE ONLY ORDINANCE NO. XXXX-XX, AN ORDINANCE OF THE CITY OF REDONDO BEACH, CALIFORNIA, AMENDING CHAPTER 7, ARTICLE 3, SECTIONS 3-7.1201, 3-7.1203, 3-7.1204, 3-7.1205, 3-7.1206, 3-7.1207, 3-7.1208 AND 3-7.1209 OF THE REDONDO BEACH MUNICIPAL CODE REGARDING PARKING ZONES AND DELETING IN ITS ENTIRETY SECTION 3-7-1210 REGARDING TAXICAB STANDS

EXECUTIVE SUMMARY
Assembly Bill 413 is a state law that went into effect on January 1, 2024. Also known as the “daylighting bill,” AB 413 amended California Vehicle Code (CVC) Section 22500 to prohibit the stopping, standing, or parking of any vehicle within 20 feet of any marked or unmarked crosswalk. The distance is reduced to 15 feet where a curb extension (bulbout) is present.

Staff is recommending a change to the City’s Municipal Code to make it consistent with AB 413 and to clean up obsolete language and reflect best practices with respect to parking restrictions identified by marked curbs and/or signage. Adoption of the ordinance change will allow the City to better implement and enforce the City’s parking regulations and those identified in State law, including AB 413.

Staff is also seeking direction from the City Council regarding a driveway parking permit program, that was referred by the Council at a previous meeting. A driveway parking permit program would allow residents who meet narrowly defined criteria to purchase parking permits allowing them to park in front of their own driveway with their own vehicle.

While there are some clear and obvious benefits to residents by provision of additional parking, concerns from the Redondo Beach Fire Department and Police Department point out concerns related to public safety and operational impediments. Therefore, staff is seeking direction on whether to continue moving forward toward formal introduction of this program by ordinance.

Administrative Report
279
2 DISCUSSION
AB 413
In accordance with AB 413, “daylighting” restrictions may not be enforced prior to January 1, 2025 unless curbs are otherwise marked by signage or paint (red curb). In 2025, jurisdictions are allowed to enforce the provisions of AB 413 whether or not red curb and/or signage is present, similar to current parking restrictions adjacent to fire hydrants. The City has started to receive questions from informed residents asking how the City plans to implement this law, in addition to regular requests to add red curb to address crosswalk safety concerns.

The City’s Engineering staff has discussed education and enforcement strategies with the City’s Parking Enforcement Unit, and together determined that a gradual approach for implementation of AB 413 standards would be appropriate. Attachment 1 is an infographic that depicts potential benefits of “daylighting” crosswalks and intersections, as an example of educational material. RBPD will continue to issue citations for parking or standing along any red curbs and begin an educational warning campaign on the dangers of blocking the visibility of crosswalks. RBPD has prepared and will provide a brief educational flyer for drivers violating CVC 22500 where red curb and/or signage may not be present, similar to Attachment 1. In 2025, citations may be considered depending on the nature of the violation in accordance with state law.

AB 413 allows for a shorter 15-foot no parking zone if a curb extension (bulbout) is present. Since AB 413 was signed into law City staff have kept this provision in mind when striping new red curb where bulbouts were recently installed. Staff proposes that if the five (5) foot difference in no parking zone could potentially prevent the loss of an additional parking space, installation of a bulbout (using striping and vertical elements such as flexible posts, or using concrete) may be considered. Construction of a bulbout must also consider drainage conditions, street sweeping load, and bicycle traffic, which will vary on a case-by-case basis.

Implementation of curb marking and signage in conformance with AB 413 addresses these concerns and is especially beneficial at intersections with high pedestrian use, including school and commercial areas. Staff are planning a systematic implementation for these changes, the most common approach in other California cities. If approved, Public Works staff will prioritize implementation by painting red curbs at the following locations:
 School zone (painted yellow) crosswalks
 Signalized intersections
 Crosswalks with visibility challenges
 Crosswalks across multiple lanes of traffic in the same direction  Crosswalks with higher pedestrian crossing volumes
 Other crosswalks determined by engineering staff to experience higher driver/pedestrian conflicts based on engineering judgement and/or resident/RBPD feedback.

Impact to Parking Resulting from AB 413
280
3 While the addition of red curb at many intersections is expected to result in a loss of some street parking, shortening of the City’s minimum parking zone lengths will provide some offset. It is not yet known exactly how many spaces may be lost but, for comparative purposes, the City and County of San Francisco expects a total on-street parking loss of 5% if all intersection corners are painted red. San Francisco has a higher intersection density than Redondo Beach, so staff expect a lower percentage of parking spaces would be affected within Redondo Beach. Nonetheless, daylighting intersections would provide valuable safety benefits to people driving, biking, and walking. When discussed with the Public Works and Sustainability Commission (PWSC) at their regular meeting on March 25, 2024, the PWSC did not suggest any changes to staff’s implementation strategy.

Subsequent to the PWSC meeting, the City Attorney’s office reviewed and approved the proposed RBMC revisions. Attachment 2 shows the March 25, 2024 PWSC Administrative Report.

Ordinance Changes
In addition to field work, staff believes it is important to “clean up” existing parking ordinance language to make it consistent with AB 413, which will make compliance more understandable and enforcement efforts more efficient.

Several modifications to the City’s existing parking ordinances are needed to make it consistent with AB 413. The California Vehicle Code (CVC) Section 22500 now prohibits parking or stopping 20 feet in advance of any legal crosswalk on the approach side, or 15 feet if a curb extension is present. Cities may install amenities such as bicycle parking corrals or bioswales within the 15 feet daylighting zone, so long as clear sight lines are maintained. Note that daylighting zones are not required on the departure side of crosswalks/intersections, but can be added based on site-specific circumstances and engineering judgement.

At a local level, RBMC 3-7.12 currently mandates the City Manager to paint or mark “no parking” zones within 30 feet of any intersection in the Central Traffic District (area bound by Beryl Street, the coast, Ruby Street, and PCH), or within 25 feet of all other intersections and crosswalks. In practice the City has not prioritized this section of the RBMC, which is more restrictive that AB 413, nor given distinction to the Central Traffic District due to the high demand for parking. Proposed revisions to RBMC would modify language in the RBMC to align with state law and reduce the minimum lengths of the City’s marked no parking zones, thereby increasing available curb length for parking.

Staff also recommends revisions to subsections of RBMC Section 3-7.12 to update and remove conflicting red curb language and to reflect best practices for discretionary curb markings. The proposed changes also take advantage of a state law allowing a reduction of mandatory restricted parking adjacent to a fire hydrant. Engineering staff consulted with the Fire Department, which tested various lengths of no parking zones around fire hydrants.

The Fire Department determined that a 20-foot no parking zone, or within 10 feet of a fire hydrant, would be sufficient for their operations. Correspondence between Public Works and Fire can be found in attachments within the PWSC Administrative Report. If approved, this would shrink the fire hydrant no parking zone from the default State minimum of 30 feet 281
4 to a locally adopted minimum of 20 feet, allowing potential gains in unrestricted curb parking. Therefore, staff is recommending the municipal code allow this change. Also, staff recommends removing the taxicab stand section of RBMC (3-7.1210) due to societal and technological shifts around ride-hailing and the lack of known and active taxicab zones within the City.

The draft proposed ordinance is included as Attachment 3, and is followed by a markup of the existing ordinance (Attachment 4).

Private Driveway Parking Permit Program
Outside of the discussion regarding the proposed ordinance changes catalyzed by AB 413, staff is also seeking City Council direction regarding a new program featuring a Private Driveway Parking Permit. Staff was asked to investigate this possibility and return with a report to Council for further direction. Such a program would offer parking permits for residents who want to park their own vehicles in front of their own driveway apron under certain specific circumstances. This type of permit program is allowed under CVC Section 22507.2, which allows local authorities to issue parking permits (by ordinance) to owners or lessees of property to park a vehicle in front of the owner’s or lessee’s exclusive driveway apron serving their private driveway. Some cities in California have adopted resolutions to create these driveway parking permit programs, such as Long Beach, Hermosa Beach, and Lawndale. There are various advantages and disadvantages to implementing a driveway parking permit program. The most obvious advantage is increased parking opportunities in parking-impacted areas. Disadvantages include the need to administer and enforce additional parking programs within existing resources, potential disruption of through traffic flow adjacent to active police activities, and a decrease in the number of access points available for emergency services, further discussed below.

Below are various requirements and conditions that could be included in this type of parking permit program, which are modeled after the City of Long Beach:
 Permits only available for residences with driveway aprons that serve a single dwelling unit
 The permit does not guarantee a parking space if there is insufficient space between other legally parked vehicles.
 Only allows for parallel on-street parking where vehicles are parked within the roadway, similar to other vehicles parked along a curb.  Driveway parking permits are specific to the driveway address. Up to one permit may be issued per address, and up to three vehicles may be added to each permit, as long as each vehicle is registered at the address to which the permit applies.  Permits will not be issued if the parked vehicle would conflict with other local and State parking regulations, or create a safety hazard, as determined by the City Engineer or Chief of Police.
 Vehicles parked under this program would still be subject to other local and State parking regulations, such as street sweeping restrictions, time limits (if applicable), sidewalk parking, and the CVC. Only one vehicle may be parked along each driveway apron at a time.
282
5 If adopted by the City Council, the Police Department has estimated that the appropriate permit fee for this type of parking permit during this first fiscal year would be $300 per permit per year. This fee would serve to only recover costs associated with the program.

This could be adjusted after some data is gathered about real costs. The fee accounts for the increased cost and staff time to administer this type of parking program and process each permit. Each permit received would require review by a Municipal Services Officer (or their designee) in the Police Department and by the Engineering Services Division. If the parking program is adopted by a future ordinance, a resolution to adopt the fee would then be brought forward for future consideration by the City Council. While Staff anticipates no physical permit will need to be attached to the vehicles, permit stickers would be distributed for each permit’s registered vehicle(s) for public visibility purposes.

This will foster public education on the program’s privileges.

The Police Department has also expressed some concern regarding such a program.

Operationally, when policy activity requires a vehicle visit to a given address, police vehicles typically find available parking only in the space in front of driveway aprons. If civilian vehicles are parked there, police are forced to park in the street’s travel lanes.

This is always disruptive to passing traffic, but is especially difficult on narrow residential streets, where legally parked cars prevent a way forward. When this occurs on one-way streets, passing traffic is forced to stop and wait or turn around to drive against the normal flow of traffic.

Engineering staff also met with Fire Department staff on potential implications to emergency services if this type of permit program is adopted for single dwelling unit driveways. The Fire Department expressed concerns that vehicles parked in front of driveways can affect the transport of medical gurneys between residences and ambulances, and would also affect the ability to respond to residential fires, especially garage fires. The Fire Department’s concerns are outlined in Attachment 5.

The proposed revisions to RBMC under this item do not include provisions for a Private Driveway Parking Permit Program. Rather, staff is seeking direction from the City Council on whether to continue moving forward with development of a draft ordinance necessary to implement such a program.

COORDINATION
Coordination of this report and revisions to RBMC took place within the Public Works Department, RBFD, RBPD Parking Enforcement Unit, and the City Attorney’s Office.

Communications also took place with transportation engineers at other California cities.

Staff also discussed AB 413 with the Councilmembers for Districts 3, 4, and 5 separately.

FISCAL IMPACT
The cost to install red curbs at intersections in accordance with the City’s AB 413 Implementation Plan will be paid from within the Public Works Department’s annual operations budget as part of staff’s regular duties and as time allows. City staff will utilize GIS-based technologies to implement and track new red curb installations related to AB 283
6 413, which will improve efficiency and accuracy of red curb inventory. Costs to administer an additional parking permit type, if approved, are expected to be recovered by revenue generated parking permit fees on a cost recovery basis.

ATTACHMENTS
1 – AB 413 Infographic
2 – March 25, 2024 PWSC Administrative Report
3 – Proposed Ordinance for first reading
4 – Track Change Revisions to RBMC 3-7.12
5 – RBFD Comments on the Proposed Driveway Parking Permit Program 284
Administrative
Report
J.3., File # PWS24-0501 Meeting Date: 3/25/2024
To: PUBLIC WORKS AND SUSTAINABILITY COMMISSION
From: Department of Public Works
TITLE
DISCUSSION OF AMENDMENTS TO REDONDO BEACH MUNICIPAL CODE SECTION 3-7.12 AND IMPLEMENTATION OF AB 413

EXECUTIVE SUMMARY
Assembly Bill 413 is a state law that went into effect on January 1, 2024. Also known as the “daylighting bill,” AB 413 amends the California Vehicle Code (CVC) Section 22500 to prohibit the stopping, standing, or parking of any vehicle within 20 feet of any marked or unmarked crosswalk, or 15 feet where a curb extension (bulbout) is present. In accordance with AB 413, prior to January 1, 2025 jurisdictions may only issue warnings for violations unless otherwise marked by signage or paint (red curb). In 2025, jurisdictions are allowed to enforce the provisions of AB 413 whether or not red curb and/or signage is present, similar to current parking restrictions adjacent to fire hydrants. Most cities in California have not yet communicated strategies to comply with this new state law. The City has started to receive some questions from informed residents asking how the City plans to implement this law.

Staff recommends a gradual implementation and enforcement strategy for AB 413 based on conversations with RBPD and other transportation engineers in other California cities, including discussions with Hermosa Beach and Manhattan Beach. Implementation of AB 413 would address visibility concerns at intersections.

Staff also recommends revisions to subsections of RBMC Section 3-7.12 to update and remove conflicting language. Attachment 1 shows redlined proposed revisions to RBMC in consultation with RBPD and RBFD.

Attachment 2 provides a draft ordinance reflecting those revisions. The City Attorney’s office is currently reviewing the proposed revisions and will be ready to consider any additional recommendations provided by the PWSC.

Staff is seeking input and direction on this matter from the public and Public Works and Sustainability Commission (PWSC) prior to discussion and a potential ordinance change at City Council.

BACKGROUND
Attachment 3 is an infographic that depicts potential benefits of “daylighting” crosswalks and intersections.

CVC states that legal crosswalks are present at nearly all intersections whether marked or unmarked with striping. Maintaining clear sight lines at crosswalks has been proven to reduce the frequency and severity of vehicle-pedestrian collisions and conflicts. Drivers are less likely to yield the right-of-way to pedestrians when there is not enough time and visibility to stop. Providing improved sight distance at intersections also aids driver visibility of traffic from conflicting directions, especially with the overwhelming popularity of larger and taller vehicles (SUVs) with residents, including electric vehicles that are typically heavier and faster accelerating.

AB 413 aims to “daylight” intersections for improved visibility and is now in effect across the State of California.

Forty-three other states have adopted similar laws already. Because AB 413 recently went into effect, most

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Forty-three other states have adopted similar laws already. Because AB 413 recently went into effect, most cities have not yet communicated plans for implementation. In New Jersey, the neighboring cities of Hoboken and Jersey City have attributed their accomplishment of zero traffic-related fatalities in 2022 to various traffic calming and safety projects, most notably the daylighting of intersections. Although both of those cities are much denser and provide more public transportation options than Redondo Beach, all three cities share characteristics with Redondo Beach such as high parking demand, relatively narrow residential streets, and an urbanized network of gridded streets.

AB 413 now prohibits parking or stopping 20 feet in advance of any legal crosswalk on the approach side, or 15 feet if a curb extension is present. The daylighting zone does not need to be marked with red curb or signed, but citation enforcement may not begin till 2025 unless red curb or signage is present. Cities may install amenities such as bicycle parking corrals or bioswales within the 15 feet daylighting zone, so long as clear sight lines are maintained. Note that red curbs are not required on the departure side of crosswalks, but City staff may mark no parking zones in those locations on a case-by-case basis based on site-specific engineering issues like visibility.

At a local level, RBMC 3-7.12 currently mandates the City Manager to paint or mark no parking zones within 30 feet of any intersection in the Central Traffic District (area bound by Beryl Street, the coast, Ruby Street, and PCH), or within 25 feet of all other intersections and crosswalks. In practice, the City has not prioritized this section of the RBMC, which is more stringent that AB 413. Proposed revisions to RBMC would modify language in the RBMC to better align with state law.

DISCUSSION
The City of Redondo Beach frequently receives requests to install stop signs and/or red curb at intersections and crosswalks due to limited sight lines and narrow streets. The City also frequently receives requests to shorten red curb to provide additional public street parking due to the high demand to park vehicles on the street. City staff intend to start complying with AB 413 as resources permit to improve transportation safety, especially for vulnerable roadway users. Due to a lack of widespread public awareness for this law and the high demand for parking in Redondo Beach, staff will prioritize implementation by painting red curbs at the following locations:
· School zone (painted yellow) crosswalks
· Signalized intersections
· Crosswalks with visibility challenges
· Crosswalks across multiple lanes of traffic in the same direction · Crosswalks with heavier pedestrian crossing volumes
· Other crosswalks determined by engineering staff to experience higher driver/pedestrian conflicts based on engineering judgement and/or resident feedback Like other red curb locations, enforcement may begin immediately at these locations. AB 413 allows for a shorter 15-foot no parking zone if a curb extension (bulbout) is present. Since late 2023 after AB 413 was signed, City staff have kept this provision in mind when striping new red curb where bulbouts were recently installed. Staff proposes that if the five (5) foot difference in no parking zone could potentially prevent the loss of an additional parking space, installation of a bulbout (using striping and vertical elements such as flexible posts, or using concrete, may be considered. Construction of a bulbout must also consider drainage conditions, street sweeping load, and bicycle traffic, which will vary on a case-by-case basis.

The City’s transportation engineer met with RBPD’s Parking Enforcement Unit to discuss education and enforcement strategies and together determined that a gradual approach for implementation of AB 413

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enforcement strategies and together determined that a gradual approach for implementation of AB 413 standards would be appropriate. RBPD would continue to issue citations for parking or standing along any red curbs, and begin an educational warning campaign on the dangers of blocking the visibility of crosswalks.

RBPD will prepare and provide a brief educational flyer for drivers violating CVC 22500 where red curb and/or signage may not be present. In 2025, citations may be considered depending on the nature of the violation in accordance with state law.

The addition of red curb at many intersections is expected to result in a loss of some street parking at intersections. It is not yet known exactly how many spaces may be lost but, for comparative purposes, the City and County of San Francisco expects a total on-street parking loss of 5% if all intersection corners are painted red. San Francisco has a higher intersection density than Redondo Beach, so staff expect a similar or lower percentage of parking spaces would be affected within Redondo Beach. Nonetheless, daylighting intersections would provide valuable safety benefits to people driving, biking, and walking, and this type of parking prohibition is already in force in 43 other states.

Revisions to RBMC 3-7.12
Attachment 1 shows the proposed revisions to parking sections of the RBMC, and are summarized below.

Attachment 2 shows the proposed ordinance.
· Removal of most designated “No Parking Zones” language in Section 3-7.1203 to align with more lenient state law.
· Addition of a local parking prohibition within 10 feet of any fire hydrant. · Removal of most of Section 3-7.1204 to provide flexibility to staff and align with Counciladopted curb policies. · General language cleanup of Section 3-7.1205 regarding colored curb zones and current accessibility standards.
· Removal of most of Section 3-7.1206 pertaining to requests for curb color changes to provide flexibility and align with Council-adopted policies.
· Removal of Section 3-7.1210 pertaining to taxicab stands based on societal shifts surrounding ridehailing platforms (Uber, Lyft etc.)
· General language cleanup (gendered language, obsolete terminology) For “No Parking Zones” around fire hydrants, the City currently defers to CVC 22514, which prohibits parking within 15 feet of a fire hydrant statewide, whether or not the curb is painted. CVC 22514 also allows jurisdictions to adopt a different length of “No Parking Zone.” The City’s Transportation Engineer consulted with RBFD on potential decreases to fire hydrant no parking zones and concluded that within 10 feet would be sufficient for RBFD operations (Attachment 4). If approved, City staff would proceed to paint red curb within 10 feet of all fire hydrants, or 20 feet in total. City staff would start with locations where the newly reduced fire hydrant red curb zone could result in an additional parking space. This would help address some of the parking loss attributed to AB 413.

COORDINATION
Coordination of this report and revisions to RBMC took place within the Public Works Department, RBFD, RBPD Parking Enforcement Unit, and the City Attorney’s Office. Communications also took place with transportation engineers at other California cities.

ATTACHMENTS
1 - Track Change Revisions to RBMC 3-7.12

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J.3., File # PWS24-0501 Meeting Date: 3/25/2024
2 - Draft Ordinance
3 - AB 413 Infographic
4 - RBFD Concurrence with Proposed Fire Hydrant “No Parking Zones”

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1 Ryan Liu
From: Jason May
Sent: Wednesday, January 17, 2024 7:05 PM
To: Ryan Liu; Patrick Butler
Cc: Brian Regan
Subject: RE: Fire Hydrant Red Curbs
Follow Up Flag: Follow up
Flag Status: Flagged
Ryan –
Today one of our Fire Engines went out to conduct several evolutions about the proposed 10’ or 20’ of red curb surrounding a fire hydrant. Here are their findings:
“After thorough evaluation, we have determined that the 10' distance is impractical. The narrowness of this distance poses challenges for the proper deployment of our large diameter hoses, potentially hindering our emergency response capabilities and risking damage to parked vehicles.

On the other hand, the 20' distance proved to be more effective and practical. We were consistently able to deploy the hose with ample room, using our current hose load, without causing any damage.

Enclosed with this email are photos depicting our operations at both the 10' and 20' distances to illustrate the difference in evolutions.

Considering these findings, I would strongly discourage allowing any vehicles to park within less than 20' (10 feet per side of the hydrant). Doing so may impede our emergency response and pose a risk of damage to vehicles.” Please let me know if additional information would help you with the RBMC refinement.

From: Ryan Liu
Sent: Tuesday, January 16, 2024 1:40 PM
To: Jason May <[email protected]>; Patrick Butler <[email protected]> Cc: Brian Regan <[email protected]>
Subject: RE: Fire Hydrant Red Curbs
Hi Chief May,
Thanks for providing an update. We’ll stand by whatever distance you deem is sufficient for your needs. We’re aiming to bring this item through the political process starting around the end of February, so there is time. 289
1 Ryan Liu
From: Cary Bearn < >
Sent: Friday, October 4, 2024 12:43
To: Ryan Liu
Subject: Re: NACTO and Daylighting (AB 413)
Attachments: CA Daylighting Bill - NACTO Letter 2023.docx.pdf CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

Hi Ryan,
Great to hear from you!
NACTO supports adopting California AB413 and implementing strategies to improve visibility between pedestrians and drivers by prohibiting parking within approximately 20 feet of a marked or unmarked crosswalk. In support of AB413, NACTO advocated (see attached letter) cities to preserve the authority to use engineering judgment to determine the best local strategy for improving safety.

For example, city engineers may determine slightly smaller distances are required at locations with curb extensions or along slow neighborhood streets (e.g., 95th percentile speeds under 25 mph) or that slightly longer distances may be needed to help drivers and pedestrians see each other on streets with parking-protected bike lanes.

I hope this helps - let me know if you need anything else.

Cary
Cary Bearn (she/her)
Senior Program Manager, Biking
National Association of City Transportation Officials
nacto.org | LinkedIn | Instagram
On Wed, Oct 2, 2024 at 12:12 PM Ryan Liu <[email protected]> wrote:

Hey Cary,

This is Ryan, we used to work together at Fehr & Peers back in 2017. Hope you’re doing well! Got a NACTO question for you, hopefully you or someone can point me in the right direction.

Last night at the 10.1.24 Redondo Beach City Council meeting (video here) we discussed an implementation strategy to comply with AB 413, California’s daylighting bill, which is a blanket 20-foot prohibition of parking in advance of crosswalks. We were directed by Council to explore a study to adopt a different distance, per CVC 22500 when AB 413 was adopted. We’re working on seeing if there’s any jurisdictions and traffic engineers that will help us out with that.

Attached: NACTO Letter to State Senate Attachment 3: NACTO 290
May 17, 2023
The Honorable Alex Lee
Assemblymember, District 24
1021 O Street, Room 6330
Sacramento, CA 95814
Dear Assemblymember,
I am writing to express the National Association of City Transportation Officials’ support for the safety principles behind daylighting, to express our interest in Assembly Bill 413 (Lee), and to recommend the addition of contextual flexibility to enable smoother implementation of the bill. This bill represents an important opportunity for California, and would be improved by the addition of contextual specificity to best apply the principles of the Urban Street Design Guide.

The “Intersections” chapter of the NACTO Urban Street Design Guide recommends that designers “Daylight intersections by removing parking within 20–25 feet of the intersection.” Other FHWA-recognized guidance such as the NACTO Urban Bikeway Design Guide and the FHWA Separated Bike Lane Planning and Design Guide cite various lengths for sightlines where a street intersects with a protected bike lane or other separated bikeway. These recommended distances vary from 10-20 feet on the approach of a driveway, alley, or cross-street to a bikeway, to 30 feet for the street that has a parking-protected bikeway on it.

Importantly, the length of daylighting appears in the Urban Street Design Guide and the other guides mentioned as a “Recommended” element, rather than a universally standard “Critical” or ‘Required’ feature. (See the “How to Use this Guide”). That important distinction signifies that the clause is intended to promote the practice of daylighting but is not intended as a blanket requirement. Especially for topics as contextually specific as daylighting and curbside use, there might be some unintended consequences of directly copying that relatively simple guidance into law. For example, a City may determine that less than 10 feet – or more than 20 feet – is appropriate for a specific intersection given all of the factors discussed above and below. It is also important to note that the 20-25 feet daylighting guidance is part of a section of the Urban Street Design Guide that discourages agencies from creating much longer highway-like 'clear zones', and instead provides guidance that reducing vehicle speeds is the primary way to increase the rate at which drivers see and yield to people with the right of way.

Both the draft legislation and several existing city daylighting policies, such as those of SFMTA, are therefore aligned with the Urban Street Design Guide, even if they are not yet completely aligned with one another.
291
The bill can support contextual specifics while achieving its goal of allowing cities to design safer intersections. Where there is a curb extension (bulbout) on the approach, there is likely no need to legislate a specific distance of daylighting, since the curb extension is itself a form of daylighting.

There is additional nuance at stop-controlled intersections and at uncontrolled (neither signalized nor stop-controlled) crosswalks.

Thank you for considering these clarifications. We would be happy to answer any questions.

Sincerely,
Matthew J. Roe
Technical Lead, National Association of City Transportation Officials cc: Members and Consultants, Assembly Transportation Committee Members and Consultants, Assembly Appropriations Committee

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Default CVC 22500 (20 Feet)
Per CVC 22500, no parking 20 feet on approach of
any marked/unmarked crosswalk. Does not require
red curb or signage -2 -2 -1 -1 -2 -2 -1 -0 -0 -1 -1 -1 -2 -2 -1 -0 -1 -3 -2 -2 Two-way streets have parking on one side,
one-way streets have parking on both sides.

Rindge has no parking.

No Parking
on Rindge
At 20 typical intersections in District 5, these 27 spaces are considered no parking zones per CVC 22500. No red curb is required. City does not plan to install red curb at every intersection.

Number of spaces approximated based on typical vehicle length. Actual spaces varies greatly due to vehicle length and parking behaviors.

Attachment 4
293
If City Adopts a Different Distance...10 feet scenario -2 -0 -1 -1 -1 -0 -1 -0 -0 -1 -1 -1 -2 -1 -1 -0 -0 -1 -2 -1 Per CVC 22500, a local authority may establish a different daylighting distance if both conditions are met:

1. Local authority establishes the different distance by ordinance that includes a finding that the different dsitance is justified by established traffic safety standards.

2. A local authority has marked the different distance at the intersection using paint of a sign.

If a 10 foot distance was established for intersecting roadways that have speed limits of 25 mph or less.

This recaptures 11 spaces (-16 instead of -27), less than half.

However, this requires RBPW to paint and maintain red curb at each location (160 linear feet total).

Legal defensibility of such distances less than 20 feet per CVC 22500 will be challenging.
294
Default CVC 22500 (20 Feet) 10 Feet -2 -1 -1 -1 -3 -2 -2 -0 -1 -1 -1 -0 -10 spaces at these 6 intersections -5 spaces at these 6 intersections Typical intersections in Districts
3 and 4, similar to District 5
295
-1 space at this intersection under
20 feet or 10 feet scenarios
20 feet default: -4 spaces
10 feet scenario: -3 spaces Typical intersection in District 2 T intersection in District 1 along Avenues
Driveways in close proximity to intersections
means spaces are lost even if the daylighting
zone is reduced. A reduced daylighting zone
requires red curb to be installed. Defaulting to
CVC 22500 does not require red curb.
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309
Administrative
Report
H.8., File # 24-1817 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE

APPROVE THE TEMPORARY STREET CLOSURE OF AVENUE H AT DORIS WAY FROM NOVEMBER 29, 2024 THROUGH JANUARY 2, 2025, AND OTHER ASSOCIATED MEASURES, TO

REDUCE TRAFFIC AND PARKING IMPACTS IN REDONDO BEACH RELATED TO THE SEASIDE

RANCHO NEIGHBORHOOD HOLIDAY LIGHTS DISPLAY IN TORRANCE

EXECUTIVE SUMMARY
Each year as a part of the year-end holiday season, staff recommends closing Avenue H at Doris Way to vehicular through traffic. This year’s closure is suggested to run from Friday, November 29, 2024, to Thursday, January 2, 2025, from 5:00 PM to 10:00 PM daily. This intersection demarks the City boundary between Redondo Beach and the City of Torrance.

After consultation with the Councilmember for District 1, local residents, Police and Fire Department leadership, and receiving input from the Public Works & Sustainability Commission (PWSC), staff is recommending a more robust traffic signage plan and additional trash cans to improve safety, cleanliness, and traffic operations in the neighborhood. Staff will continually monitor and adjust the operational portions of the plan, as necessary, to ensure optimal deployment during the holiday season. City Council approval is required to initiate the temporary street closure.

BACKGROUND
The annual street closure was initiated in 1993 following a petition from residents along Avenue H, Massena Avenue, and Circle Drive requesting that the City explore ways to address heavy traffic congestion due to the Seaside Rancho (Torrance) neighborhood’s holiday season light displays.

Subsequently, representatives from the cities of Torrance and Redondo Beach met and determined that temporary barricades installed by the City of Redondo Beach would resolve the issue. The practice includes the daily installation and removal of lockable in-street bollards during the closure period, as well as appropriate advance signage.

After recent holiday seasons, City staff observed an increase in visitor activity to the area, as well as increased complaints from Redondo Beach residents regarding traffic safety, access, and trash.

Earlier this year, City staff started preparing for an updated traffic signage plan, additional trash cans, and met with the District 1 Councilmember and the Police Department to discuss other possible mitigation strategies.

The strategies developed in these discussions were presented at the October 28, 2024 PWSC meeting. Neighborhood residents were invited to provide feedback, with residents advocating for

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H.8., File # 24-1817 Meeting Date: 11/19/2024
meeting. Neighborhood residents were invited to provide feedback, with residents advocating for more trash cans to be deployed than in previous years. Options for parking restrictions were discussed, including a preferential parking permit program, and temporary “no parking” zones on one or both sides of the street, along with other ways to reduce congestion. Limitations to emergency access due to the congestion was also brought forward as a concern. Staff contributed information about the limitations and impacts of a residential preferential permit parking ordinance as a method to address congestion.

The Redondo Beach Municipal Code (RBMC) is narrowly tailored to only allow preferential permit parking if specific conditions are met that occur at daily/weekly intervals for substantial periods of the year. Staff also considered general parking restrictions under RBMC 3-7.1314. This section allows parking restrictions arising from traffic congestion or hazards associated with events and public assembly. Based on feedback provided prior to the meeting, staff did not recommend a total parking restriction that would affect both residents and visitors. Residents at the meeting expressed divided, but largely negative, sentiments related to prohibiting parking in large parts of the neighborhood.

Residents and Commissioners also discussed preferential entry into the neighborhood or directing traffic into Tulita Elementary School. Neither of these methods are allowed under State Vehicle Code, as the City must maintain reasonable and impartial public access to public streets. In addition, the City is not allowed to direct public traffic into private land for the purposes of facilitating public through traffic.

In the end, the PWSC voted to recommend additional traffic signage, a programmable message sign, at least four trash cans, continuous operational monitoring and adjustments throughout the holiday period, and requested that visibility analyses be completed at intersections in the area. The PWSC administrative report provides additional history and background surrounding the uptick in popularity of the holiday lights, measures conducted by the City of Torrance in recent years, and City staff’s proposed measures presented for consideration for the PWSC.

Following the PWSC meeting, Public Works staff met with Police and Fire Department leadership to develop additional operational improvements that can be implemented to improve circulation and redirect visitors to enter via Torrance roadways that will allow vehicular access to the Seaside Rancho neighborhood. As resources allow, RBPD will deploy enhanced parking enforcement and patrol to the neighborhood during the holiday season.

One major concern is decreased vehicle circulation caused by drivers trying to turn around to leave the neighborhood, which has no outlet beyond Avenue H, which is blocked nightly on the eastern end at the Torrance boundary. To address this, staff will deploy a temporary roundabout at Avenue H and Massena Avenue to facilitate vehicular U-turns at the intersection without requiring a three-point turn.

This is expected to reduce congestion and enhance emergency access to the area. The Police and Public Works Departments will implement limited, temporary no parking zones (for all drivers) in key areas adjacent to the intersection, four spaces in total, to create the necessary space for the temporary roundabout and facilitate its temporary operation. As per RBMC 3-7.1314, staff is authorized to do so by direction of the City Manager, and this is recommended by both the Police and Fire Chiefs. Other limited, temporary no parking zones may be considered after weekly monitoring, but staff does not propose restricting large sections of on-street parking based on public feedback.

The current staff recommendation reflects the recommendations of the PWSC and also incorporates additional operational strategies developed with the assistance of the City’s Police and Fire Departments. The attached signage/circulation and trash bin plan has been updated based on the

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H.8., File # 24-1817 Meeting Date: 11/19/2024
PWSC’s recommendation and further input from the Fire and Police Departments.

COORDINATION
The Public Works Department coordinated this item with the Police and Fire Departments, the District 1 Councilmember, neighborhood residents, and the PWSC. Public Works will assign personnel to post signs, set up the temporary roundabout, and will, as in past seasons, install and remove the bollards daily from Friday, November 29, 2024, to Thursday, January 2, 2025. Public Works employees will be assigned to perform these tasks, as they have regular evening staffing shifts, seven days a week.

FISCAL IMPACT
The total cost for this task is included in the Public Works Department’s annual operating budget.

Placement of signs and street closure barricades is done during Public Works Maintenance staff’s normal working hours. The signs and barricades are reused from year to year.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Administrative Report - Public Works & Sustainability Commission, October 28, 2024 · Proposed Operational and Sign Plan

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Administrative
Report
H.8., File # 24-1817 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE

APPROVE THE TEMPORARY STREET CLOSURE OF AVENUE H AT DORIS WAY FROM NOVEMBER 29, 2024 THROUGH JANUARY 2, 2025, AND OTHER ASSOCIATED MEASURES, TO

REDUCE TRAFFIC AND PARKING IMPACTS IN REDONDO BEACH RELATED TO THE SEASIDE

RANCHO NEIGHBORHOOD HOLIDAY LIGHTS DISPLAY IN TORRANCE

The strategies developed in these discussions were presented at the October 28, 2024 PWSC meeting. Neighborhood residents were invited to provide feedback, with residents advocating for

Page 1 of 3 ends

313
H.8., File # 24-1817 Meeting Date: 11/19/2024
meeting. Neighborhood residents were invited to provide feedback, with residents advocating for more trash cans to be deployed than in previous years. Options for parking restrictions were discussed, including a preferential parking permit program, and temporary “no parking” zones on one or both sides of the street, along with other ways to reduce congestion. Limitations to emergency access due to the congestion was also brought forward as a concern. Staff contributed information about the limitations and impacts of a residential preferential permit parking ordinance as a method to address congestion.

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PWSC’s recommendation and further input from the Fire and Police Departments.

FISCAL IMPACT
The total cost for this task is included in the Public Works Department’s annual operating budget.

Placement of signs and street closure barricades is done during Public Works Maintenance staff’s normal working hours. The signs and barricades are reused from year to year.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Administrative Report - Public Works & Sustainability Commission, October 28, 2024 · Proposed Operational and Sign Plan

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Administrative
Report
J.2., File # PWS24-1739 Meeting Date: 10/28/2024
To: PUBLIC WORKS AND SUSTAINABILITY COMMISSION
From: Department of Public Works
TITLE

DISCUSSION AND POSSIBLE ACTION ON AVENUE H / MASSENA NEIGHBORHOOD HOLIDAY TRAFFIC

MEASURES

EXECUTIVE SUMMARY
Annually, during the year-end holidays, the City of Redondo Beach implements an evening closure of Avenue H at the city border of Redondo Beach and Torrance to reduce the effects of holiday lights traffic activity in the area. Visitors from around the region typically visit Torrance neighborhoods just east of Avenue H each year to enjoy Christmas/holiday decorations, lights, and festivities. The gatherings have increased in popularity over the years, which resulted in numerous complaints by Redondo Beach residents, especially those who live east of Prospect Avenue along Avenue H, Massena Avenue, and Circle Drive. The City proposes to continue implementing a nightly 5pm - 10pm closure of Avenue H at the city border via in-road removable bollards.

However, due to changes in traffic restrictions within Torrance, Redondo Beach staff are proposing additional measures to alleviate the effects of increased traffic in the area.

Staff is seeking input and direction on this matter from the Public Works and Sustainability Commission (PWSC), with the goal of developing an implementation plan for City Council approval in November 2024 before the holiday lighting period, which begins the weekend after Thanksgiving. Notification of this agenda topic was mailed to addresses along Avenue H, Massena Avenue, and Circle Drive east of and along Prospect Avenue. Notification was also provided to properties in the vicinity along the west side of Prospect Avenue.

Attachment 1 shows a map of the notification area. Notification was also provided to RBUSD, as Tulita Elementary School is located adjacent to this neighborhood.

BACKGROUND
Each year since 1984, residents within the Seaside Ranchos neighborhood of Torrance, also known as “Sleepy Hollow,” voluntarily install holiday/Christmas light displays and decorations that attract visitors from around the region. The event is sometimes known as the Seaside Holiday Lights, Torrance Christmas Lights, or Torrance Candy Cane Lane. The event is organized and sponsored solely by residents and members of the Seaside Neighborhood Association, not the City of Torrance. Lights are typically active each evening, 5pm to 10pm between Thanksgiving weekend and the New Year. The privately run website seasideholidaylights.com and associated social media platforms, sponsored by the Seaside Neighborhood Association, provide information, reminders, and access information. The website recommends visitors to park west of the main display area, specifically near Tulita ES and the surrounding streets in Redondo Beach. Some residents and non-residents within the display area sold a variety of food and beverages, either legally or illegally. This has resulted in complaints of trash from Redondo Beach residents. Sidewalk/roaming vending in the Torrance neighborhood is not allowed due to a lack of 6-foot sidewalks, while home vending was allowed under cottage food ordinances. However, the Torrance City Council recently voted to prohibit any home vending after 5 PM for the 2024 season. This effectively prohibits any vending when holiday lights are on for the 2024 season.

Attachment 2 shows the approximate holiday lights display area. In conjunction, the City of Torrance provides

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J.2., File # PWS24-1739 Meeting Date: 10/28/2024
Attachment 2 shows the approximate holiday lights display area. In conjunction, the City of Torrance provides a website with FAQs, vending rules, traffic plans, and other regulations. The City of Torrance typically provides traffic message boards, trash cans, and public safety enforcement.

Since 2023, the City of Torrance has implemented alternating side street parking restrictions within the Seaside Holiday Lights area to facilitate unimpeded two-way vehicular travel. The odd-years map is also shown in Attachment 2. During even years, the parking restriction is flipped to the other side of each affected street. These restrictions are in effect on Fridays, Saturdays, and Sundays between 5pm and 10pm, starting December 6, 2024.

Since the Seaside Holiday Lights have become more popular, the City of Redondo Beach has implemented a closure of Avenue H at the city border with in-road removable bollards to prevent regional vehicular traffic from accessing the lights area from Prospect Avenue. This nightly bollard closure during the holiday lights season has been in effect for at least twenty years. Some signage has been placed to warn motorists of the road closure. The City also provides a trash receptacle at the City border as a courtesy. Due to the newly implemented street parking restrictions within Torrance, residents on the Redondo Beach side have expressed concerns that the City’s holiday traffic plan needs to be revised.

DISCUSSION:

City staff met with the Councilmember for District 1 (Nils Nehrenheim) to discuss potential traffic and outreach strategies. Because of the reduction of approximately half of the street parking spaces within the holiday lights area in Torrance, and the Seaside Neighborhood Association’s parking suggestions, the City of Redondo Beach expects a higher level of parking utilization along surrounding streets, including those in Redondo Beach.

City staff proposes to continue implementing the annual bollard closure of Avenue H, which will occur nightly from 5 PM to 10 PM between the day after Thanksgiving and January 2 of the next year. Additionally, City staff proposes additional signage at the Prospect/Avenue H intersection warning motorists of the upcoming road closure, shown in Attachment 3. This will also include a changeable message sign that says alternates between “LOCAL ACCESS ONLY” and “PUT TRASH IN BIN.” Public Works staff will provide two (2), more visible trash receptacles along Avenue H to encourage proper disposal of litter.

City staff reached out to RBUSD to discuss parking options at Tulita Elementary School, which is within the neighborhood and next to the holiday lights. District staff have observed an uptick in visitors parking in the Tulita ES lot but have been able to manage any negative effects. The parking lot is ungated and Tulita ES activity typically ends at 6 PM. At this time, RBUSD is not planning any particular measures at Tulita ES during the holiday season.

Councilmember Nehrenheim has agreed to reach out to entities such as St. Lawrence Martyr School/Church and Seaside Elementary School (TUSD) to discuss the potential use of their parking lots for visitors during the holiday season. In particular, St. Lawrence Martyr School could accept donations for parking and provide direct walking access to the holiday lights area via their Linda Drive gate, if the institution chooses.

Councilmember Nehrenheim also intends to out to the Seaside Neighborhood Association (Torrance), which runs the website and social media platforms for the event, to request removal of references and suggestions for visitors to park near Tulita ES.

At this time, staff and Councilmember Nehrenheim agree that any additional parking restrictions within the Redondo side of the neighborhood would be too severe and impactful on neighborhood residents. Staff considered utilizing Redondo Beach Municipal Code (RBMC) 3-7.17, which contains specific provisions and requirements to establish preferential permit parking zones. Preferential permit parking zones, as the RBMC 3 -7.1702 is written, are intended to address year-round parking issues that occur “at regular and significant daily or weekly intervals.” It is highly unlikely that the specific thresholds under RBMC can be met to legally

Page 2 of 3 ends

31746
J.2., File # PWS24-1739 Meeting Date: 10/28/2024
establish an enforceable preferential permit parking zone.

City staff and Councilmember Nehrenheim also discussed the possibility of a complete parking prohibition on all streets within the Redondo side of the neighborhood during the peak holiday lights period of 5 PM to 10 PM on Fridays, Saturdays, and Sundays to match similar restrictions in the City of Torrance. However, this was considered infeasible due to the impact it would have on residents within the neighborhood, especially during the year-end holidays when many residents host family, visitors, and holiday parties. The City will continue to monitor the effects of the holiday lights and adjust its strategies accordingly.

COORDINATION
Coordination of this evaluation and report took place within the Public Works Department, the Councilmember for District 1, and RBUSD.

ATTACHMENTS
1 - Notification Area (Redondo Beach)
2 - Seaside Holiday Lights Area and Parking Restrictions (Torrance) 3 - Holiday Sign Plan for Prospect/Avenue H

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31847
Attachment 1 - Notification Area
Notification area shown as blue
highlighted properties:
-Avenue H, Circle Dr, and Massena Av
east of Prospect.
-Both sides of Prospect near Avenue H.
31948
Approximate area of
Seaside Holiday Lights
Redondo
Beach
Avenue H Basemap Source: City of Torrance Attachment 2 - Seaside Holiday Lights Area and Parking Restrictions Per Torrance, parking restrictions expected to be flipped to other side of each street during even years.
5pm-10pm nightly bollardclosure by CoRB
49 320
Annual Avenue H Holiday Closure Sign and Trash Bin Plan Type 2 barricade sign facing
northbound approach
1345 Prospect: Sign on Type 2
barricade facing southbound
Other side facing
northbound Add barricade light to each
Type 2 barricade.

Signs on Type 2
barricades against
curb facing entry:

Provide changeable message board:
...LOCAL ACCESS ONLY...
...PUT TRASH IN BIN...

Add additional "No
Outlet" (W14-2) sign
at Ave H/Massena
Trash cans to be placed along
Avenue H and Massena. Prospect Ave H
32150
On southbound light post
above SS sign, add green
background sign with white
text in big enough font size:
"HOLIDAY LIGHTS"
<left arrow>
On northbound pole below SS sign,
add green background sign with
white text in big enough font size:
"HOLIDAY LIGHTS"
<right arrow>
On eastbound light post above SS
sign, add green background sign with
white text in big enough font size:
"HOLIDAY LIGHTS"
<up arrow>

THESE GENERAL

SIGNS STAY UP THE

WHOLE SEASON
On Type 2 barricade, add green
background sign with white text
in big enough font size:
"HOLIDAY LIGHTS"
<left arrow> General Neighborhood Signs SB Prospect @ PCH 322
Avenue H at Prospect
Type 2 barricade sign facing
northbound approach Add barricade light to each
Type 2 barricade.

Signs on Type 2
barricades against curb in
parking lane facing entry:

PD will provide changeable message board:
...NO XMAS LIGHT ACCESS...
...PUT TRASH IN BIN...
...NO THRU TRAFFIC...

Prospect Ave H
Below this sign, add green
background sign with white text:
"HOLIDAY LIGHTS"
<up arrow>

THESE SIGNS STAY UP

THE WHOLE SEASON
See what we can do to
secure the barricades/signs
323
Additional signs for the season at Ave H/Massena:

Temporary Traffic Circle for U-turns
Three of our smallest water-filled barricades,
facing the directions of travel. Place roundabout
signs (3) (corrugated okay) on each side.

Temp no parking this space
for the whole season
Temp no parking this space
for the whole season
Temp no parking these (2)
spaces for the whole season
324
1345 Prospect: Sign on Type 2
barricade facing southbound
Other side facingnorthbound
Prospect Ave H/Massena, add this sign to top of SS sign post.

Install/remove
Corrugated/temp mount
bollards daily5-10pm as usual
On Type 2 barricade,add "Road Closed"sign. This sign moveswith bollards each day Add barricade light to each Type 2 barricade. 5-10 PM Add on 5-10 PM to R11-4 sign Below this sign, add greenbackground sign with white text:"HOLIDAY LIGHTS"<up arrow> Additional signs for the season:
(4) Trash cans to be placed along Avenue H andMassena, placed/removed daily with bollards.(2) at City border, (1) at Ave H/Massena, (1) onAve H near Tulita ES. TRASH CANS:
325
Administrative
Report
H.9., File # 24-1818 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE

APPROVE AN ON-CALL PROFESSIONAL SERVICES AGREEMENT WITH ROY COLBERT

ARCHITECT, A CALIFORNIA CORPORATION, FOR ARCHITECTURAL SERVICES FOR AN AMOUNT NOT TO EXCEED $100,000 AND THE TERM ENDING NOVEMBER 4, 2026

EXECUTIVE SUMMARY
In an effort to accelerate CIP project delivery, Public Works Department staff has negotiated on-call professional service agreements with engineering, architecture, and surveying firms to allow for quick assignment of smaller work tasks by setting up the contract conditions in advance. On-call service contracts are, by definition, not fully defined as to the scope, amount and encumbrance of a funding source. To overcome these uncertainties, these contracts include a mechanism for staff to receive quotes and award work on a task-by-task basis, with a not-to-exceed limit for the amount of work awarded to a consulting firm over the life of the contract. Funding for each task comes from projects and programs that have already received Council appropriations.

The City Council has awarded a number of these contracts in the past, and they have been successfully used in a number of projects to accelerate project delivery timelines. The contract with Roy Colbert Architect will provide architectural services needed to prepare building plans and renderings that are often required to renovate and maintain City facilities.

BACKGROUND
During the FY 2018-19 budget cycle, a Budget Response Report identified several tools that would be useful in accelerating the pace of delivery of CIP projects. One tool was establishing on-call consulting contracts for various professional services. These on-call contracts include a mechanism for staff to receive quotes and award work on a task-by-task basis, with a single not-to-exceed limit for the total amount of work to be completed by a given vendor. This allows staff to quickly assign smaller work tasks (e.g. geotechnical engineering, surveying, etc.) without having to develop and present an individual contract to City Council for consideration. Funding sources for on-call contracts are not identified at the time of award. Rather, as tasks are assigned to an on-call vendor, the funding is assigned (using the purchase order) from funding already appropriated for the particular project to which the work applies.

The Public Works Engineering Services Division and the City Attorney’s Office worked together to develop a contract template for request for proposals for on-call consulting services. The template stipulates a two-year term with a not to exceed value of $100,000 over the two years. Many of these contracts have been renewed for additional two-year terms, and new vendors have been awarded

Page 1 of 2 ends

326
H.9., File # 24-1818 Meeting Date: 11/19/2024
contracts have been renewed for additional two-year terms, and new vendors have been awarded contracts as the City’s need for on-call firms grows and changes.

These Agreements provide the City with a deep and broad bench of firms to supplement staff efforts to deliver CIP projects. At this time, staff recommends the approval of an on-call Agreement with Roy Colbert Architect, a full-service architecture firm that specializes in commercial facility design that can assist the City with increased demand for services at City facilities prompted by the City’s Capital Improvement Program.

COORDINATION
On-call contract development has been coordinated between the Public Works Department and the City Attorney’s Office. The City Attorney’s Office prepared and approved the proposed Agreement.

FISCAL IMPACT
There is no additional fiscal impact associated with approval of the proposed Agreement. Funding for the contract tasks assigned by staff is provided from previously approved Capital Projects.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Agmt - On-Call Professional Services with Roy Colbert Architect · Insurance - Roy Colbert Architect

Page 2 of 2 ends

327
Administrative
Report
H.9., File # 24-1818 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
TITLE

APPROVE AN ON-CALL PROFESSIONAL SERVICES AGREEMENT WITH ROY COLBERT

ARCHITECT, A CALIFORNIA CORPORATION, FOR ARCHITECTURAL SERVICES FOR AN AMOUNT NOT TO EXCEED $100,000 AND THE TERM ENDING NOVEMBER 4, 2026

Page 1 of 2 ends

328
H.9., File # 24-1818 Meeting Date: 11/19/2024
contracts have been renewed for additional two-year terms, and new vendors have been awarded contracts as the City’s need for on-call firms grows and changes.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Agmt - On-Call Professional Services with Roy Colbert Architect · Insurance - Roy Colbert Architect

Page 2 of 2 ends

329
1 AGREEMENT FOR CONSULTING SERVICES

BETWEEN THE CITY OF REDONDO BEACH
AND ROY E. COLBERT
THIS AGREEMENT FOR CONSULTING SERVICES (this "Agreement") is made between the City of Redondo Beach, a chartered municipal corporation ("City") and Roy E. Colbert, a licensed architect ("Consultant" or “Contractor”).

The parties hereby agree as follows:

1. Description of Project or Scope of Services. The project description or scope of services to be provided by Consultant, and any corresponding responsibilities of City, or services required to be performed by City are set forth in Exhibit "A."

2. Term and Time of Completion. Consultant shall commence and complete the project or services described in Exhibit "A" in accordance with the schedule set forth in Exhibit "B".

3. Compensation. City agrees to pay Consultant for work performed in accordance with Exhibit "C".

4. Insurance. Consultant shall adhere to the insurance requirements outlined in Exhibit “D”, unless otherwise waived by the City’s Risk Manager. * * * * *

GENERAL PROVISIONS

1. Independent Contractor. Consultant acknowledges, represents and warrants that Consultant is not a regular or temporary employee, officer, agent, joint venturer or partner of the City, but rather an independent contractor. This Agreement shall not be construed as a contract of employment. Consultant shall have no rights to any benefits which accrue to City employees unless otherwise expressly provided in this Agreement. Due to the independent contractor relationship created by this Agreement, the City shall not withhold state or federal income taxes, the reporting of which shall be Consultant's sole responsibility.

2. Brokers. Consultant acknowledges, represents and warrants that Consultant has not hired, retained or agreed to pay any entity or person any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this Agreement.

3. City Property. All plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials prepared for or obtained pursuant to this Agreement shall upon request be delivered to the City within a reasonable time, and the rights thereto shall be deemed assigned to the City. If applicable, 330
2 Consultant shall prepare check prints upon request. Said plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials, shall be specific for the project herein and shall not be used by the City for any other project without Consultant's consent. Notwithstanding the foregoing, Consultant shall not be obligated to assign any proprietary software or data developed by or at the direction of Consultant for Consultant's own use; provided, however, that Consultant shall, pursuant to Paragraph 14 below, indemnify, defend and hold the City harmless from and against any discovery or Public Records Act request seeking the disclosure of any such proprietary software or data.

4. Inspection. If the services set forth in Exhibit "A" shall be performed on City or other public property, the City shall have the right to inspect such work without notice. If such services shall not be performed on City or other public property, the City shall have the right to inspect such work upon reasonable notice.

Inspections by the City shall not relieve or minimize the responsibility of Consultant to conduct any inspections Consultant has agreed to perform pursuant to the terms of this Agreement. Consultant shall be solely liable for said inspections performed by Consultant. Consultant shall certify in writing to the City as to the completeness and accuracy of each inspection required to be conducted by Consultant hereunder.

5. Services. The project or services set forth in Exhibit "A" shall be performed to the full satisfaction and approval of the City. In the event that the project or services set forth in Exhibit "A" are itemized by price in Exhibit "C", the City in its sole discretion may, upon notice to Consultant, delete certain items or services set forth in Exhibit "A", in which case there shall be a corresponding reduction in the amount of compensation paid to Consultant. City shall furnish Consultant to the extent available, with any City standards, details, specifications and regulations applicable to the Project and necessary for the performance of Consultant's services hereunder. Notwithstanding the foregoing, any and all additional data necessary for design shall be the responsibility of Consultant.

6. Records. Consultant, including any of its subcontractors shall maintain full and complete documents and records, including accounting records, employee time sheets, work papers, and correspondence pertaining to the project or services set forth in Exhibit "A". Consultant, including any of its subcontractors shall make such documents and records available for City review or audit upon request and reasonable notice, and shall keep such documents and records, for at least four (4) years after Consultant's completion of performance of this Agreement. Copies of all pertinent reports and correspondence shall be furnished to the City for its files.

7. Changes and Extra Work. All changes and/or extra work under this Agreement shall be performed and paid for in accordance with the following:
331
3 Only the City Council, City Manager, or the Department Head responsible for the administration of, or supervision of the scope of work under, this Agreement may authorize extra and/or changed work. Consultant expressly recognizes that other City personnel are without authorization to either order extra and/or changed work or waive contract requirements. Failure of Consultant to secure the written authorization for such extra and/or changed work shall constitute a waiver of any and all right to adjustment in contract price due to such unauthorized work and Consultant thereafter shall be entitled to no compensation whatsoever for performance of such work.

If Consultant is of the opinion that any work which Consultant has been directed to perform is beyond the scope of this Agreement and constitutes extra work, Consultant shall promptly notify the City of the fact. The City shall make a determination as to whether or not such work is, in fact, beyond the scope of this Agreement and constitutes extra work. In the event that the City determines that such work does constitute extra work, City shall provide extra compensation to Consultant on a fair and equitable basis. A written amendment providing for such compensation for extra work shall be executed by Consultant and the City.

8. Additional Assistance. If this Agreement requires Consultant to prepare plans and specifications, Consultant shall provide assistance as necessary to resolve any questions regarding such plans and specifications that may arise during the period of advertising for bids, and Consultant shall issue any necessary addenda to the plans and specifications as requested. In the event Consultant is of the opinion that City's requests for addenda and assistance is outside the scope of normal services, the parties shall proceed in accordance with the changes and extra work provisions of this Agreement.

9. Professional Ability. Consultant acknowledges, represents and warrants that Consultant is skilled and able to competently provide the services hereunder, and possesses all professional licenses, certifications, and approvals necessary to engage in its occupation. City has relied upon the professional ability and training of Consultant as a material inducement to enter into this Agreement.

Consultant shall perform in accordance with generally accepted professional practices and standards of Consultant's profession.

10. Business License. Consultant shall obtain a Redondo Beach Business License before performing any services required under this Agreement. The failure to so obtain such license shall be a material breach of this Agreement and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual circumstances without necessitating any modification of this Agreement to reflect such waiver.

11. Termination Without Default. Notwithstanding any provision herein to the contrary, the City may, in its sole and absolute discretion and without cause, terminate this Agreement at any time prior to completion by Consultant of the 332
4 project or services hereunder, immediately upon written notice to Consultant. In the event of any such termination, Consultant shall be compensated for: (1) all authorized work satisfactorily performed prior to the effective date of termination; and (2) necessary materials or services of others ordered by Consultant for this Agreement, prior to Consultant’s receipt of notice of termination, irrespective of whether such materials or services of others have actually been delivered, and further provided that Consultant is not able to cancel such orders. Compensation for Consultant in such event shall be determined by the City in accordance with the percentage of the project or services completed by Consultant; and all of Consultant's finished or unfinished work product through the time of the City's last payment shall be transferred and assigned to the City. In conjunction with any termination of this Agreement, the City may, at its own expense, make copies or extract information from any notes, sketches, computations, drawings, and specifications or other data, whether complete or not.

12. Termination in the Event of Default. Should Consultant fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Agreement, the City may immediately terminate this Agreement by giving written notice of such termination, stating the reasons for such termination. Consultant shall be compensated as provided immediately above, provided, however, there shall be deducted from such amount the amount of damages if any, sustained by the City by virtue of Consultant's breach of this Agreement.

13. Conflict of Interest. Consultant acknowledges, represents and warrants that Consultant shall avoid all conflicts of interest (as defined under any federal, state or local statute, rule or regulation, or at common law) with respect to this Agreement. Consultant further acknowledges, represents and warrants that Consultant has no business relationship or arrangement of any kind with any City official or employee with respect to this Agreement. Consultant acknowledges that in the event that Consultant shall be found by any judicial or administrative body to have any conflict of interest (as defined above) with respect to this Agreement, all consideration received under this Agreement shall be forfeited and returned to City forthwith. This provision shall survive the termination of this Agreement for one (1) year.

14. Indemnity Design Professional Services. In connection with its design professional services and to the maximum extent permitted by law, Consultant shall hold harmless and indemnify City, and its officials, officers, employees, agents, and designated volunteers (collectively, “Indemnitees”), with respect to any and all claims, demands, causes of action, damages, injuries, liabilities, losses, costs or expenses, including reimbursement of attorneys’ fees and costs of defense, which arise out of, pertain to, or relate to in whole or in part to the negligence, recklessness, or willful misconduct of Consultant or any of its officers, employees, subcontractors, or agents in the performance of its design professional services under this Agreement, except for such loss or damage 333
5 arising from the sole negligence or willful misconduct of the City. In no event shall the cost to defend charged to Consultant exceed Consultant’s proportionate percentage of fault.
a. Other Indemnities. In connection with any and all claims, demands, causes of action, damages, injuries, liabilities, losses, costs or expenses, including attorneys’ fees and costs of defense (collectively, “Damages” hereinafter) arising out of or related to the performance of this Agreement, excluding Consultant’s design professional services, and to the maximum extent permitted by law, Consultant shall defend, hold harmless and indemnify the Indemnitees with respect to any and all Damages, which arise out of, pertain to, or relate to the acts or omissions of Consultant or any of its officers, employees, subcontractors, or agents in the performance of this Agreement, except for such loss or damage arising from the sole negligence or willful misconduct of the City. Consultant shall defend Indemnitees in any action or actions filed in connection with any such Damages. Notwithstanding the foregoing, nothing in this Section 14 shall be construed to encompass Indemnitees’ active negligence to the limited extent that this Agreement is subject to Civil Code Section 2782(b). Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
b. Nonwaiver of Rights. Indemnitees do not and shall not waive any rights that they may possess against Consultant because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
c. Waiver of Right of Subrogation. Consultant, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.

15. Insurance. Consultant shall comply with the requirements set forth in Exhibit "D." Insurance requirements that are waived by the City's Risk Manager do not require amendments or revisions to this Agreement.

16. Non-Liability of Officials and Employees of the City. No official or employee of the City shall be personally liable for any default or liability under this Agreement.

17. Compliance with Laws. Consultant shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, with respect to this Agreement, including without limitation all environmental laws, employment laws. 334
6 18. Non-Discrimination. Consultant shall comply with all applicable federal, state, and local laws, ordinances, regulations, and codes prohibiting discrimination, including but not limited to the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, and the California Fair Employment and Housing Act.

Consultant shall not discriminate against any employee or applicant for employment on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Consultant shall ensure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment. Consultant shall include a similar non-discrimination provision in all subcontracts related to the performance of this Agreement.

19. Limitations upon Subcontracting and Assignment. Consultant acknowledges that the services which Consultant shall provide under this Agreement are unique, personal services which, except as otherwise provided herein, Consultant shall not assign or sublet to any other party without the prior written approval of City, which approval may be withheld in the City's sole and absolute discretion. In the event that the City, in writing, approves any assignment or subletting of this Agreement or the retention of subcontractors by Consultant, Consultant shall provide to the City upon request copies of each and every subcontract prior to the execution thereof by Consultant and subcontractor. Any attempt by Consultant to assign any or all of its rights under this Agreement without first obtaining the City's prior written consent shall constitute a material default under this Agreement.

The sale, assignment, transfer or other disposition, on a cumulative basis, of twenty-five percent (25%) or more of the ownership interest in Consultant or twenty-five percent (25%) or more the voting control of Consultant (whether Consultant is a corporation, limited liability company, partnership, joint venture or otherwise) shall constitute an assignment for purposes of this Agreement.

Further, the involvement of Consultant or its assets in any transaction or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Agreement or Consultant’s assets occurs, which reduces Consultant’s assets or net worth by twenty-five percent (25%) or more shall also constitute an assignment for purposes of this Agreement.

20. Subcontractors. Consultant shall provide properly skilled professional and technical personnel to perform any approved subcontracting duties. Consultant shall not engage the services of any person or persons now employed by the City without the prior written approval of City, which approval may be withheld in the City's sole and absolute discretion.

21. Integration. This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes any previous oral or written agreement; provided, however, that correspondence or documents 335
7 exchanged between Consultant and City may be used to assist in the interpretation of the exhibits to this Agreement.

22. Amendment. This Agreement may be amended or modified only by a subsequent written amendment executed by both parties.

23. Conflicting Provisions. In the event of a conflict between the terms and conditions of this Agreement and those of any exhibit or attachment hereto, this Agreement proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by the City shall prevail over those prepared by Consultant.

24. Non-Exclusivity. Notwithstanding any provision herein to the contrary, the services provided by Consultant hereunder shall be non-exclusive, and City reserves the right to employ other contractors in connection with the project.

25. Exhibits. All exhibits hereto are made a part hereof and incorporated herein by reference; provided, however, that any language in Exhibit "A" which does not pertain to the project description, proposal, or scope of services (as applicable) to be provided by Consultant, or any corresponding responsibilities of City, shall be deemed extraneous to, and not a part of, this Agreement.

26. Time of Essence. Time is of the essence of this Agreement.

27. Confidentiality. To the extent permissible under law, Consultant shall keep confidential its obligations hereunder and the information acquired during the performance of the project or services hereunder.

28. Third Parties. Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Agreement shall not be considered "third parties."

29. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the County of Los Angeles, Southwest Judicial District.

30. Attorneys’ Fees. In the event either party to this Agreement brings any action to enforce or interpret this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys’ fees (including expert witness fees) and costs.

This provision shall survive the termination of this Agreement.

31. Claims. Any claim by Consultant against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City 336
8 shall be waived if not made within six (6) months after accrual of the cause of action.

32. Interpretation. Consultant acknowledges that it has had ample opportunity to seek legal advice with respect to the negotiation of this Agreement. This Agreement shall be interpreted as if drafted by both parties.

33. Warranty. In the event that any product shall be provided to the City as part of this Agreement, Consultant warrants as follows: Consultant possesses good title to the product and the right to transfer the product to City; the product shall be delivered to the City free from any security interest or other lien; the product meets all specifications contained herein; the product shall be free from material defects in materials and workmanship under normal use for a period of one (1) year from the date of delivery; and the product shall be fit for its intended purpose(s). Notwithstanding the foregoing, consumable and maintenance items (such as light bulbs and batteries) shall be warranted for a period of thirty (30) days from the date of delivery. All repairs during the warranty period shall be promptly performed by Consultant, at Consultant's expense, including shipping.

Consultant shall not be liable under this warranty for an amount greater than the amount set forth in Exhibit "C" hereto.

34. Severance. Any provision of this Agreement that is found invalid or unenforceable shall be deemed severed, and all remaining provisions of this Agreement shall remain enforceable to the fullest extent permitted by law.

35. Authority. City warrants and represents that upon City Council approval, the Mayor of the City of Redondo Beach is duly authorized to enter into and execute this Agreement on behalf of City. The party signing on behalf of Consultant warrants and represents that he or she is duly authorized to enter into and execute this Agreement on behalf of Consultant, and shall be personally liable to City if he or she is not duly authorized to enter into and execute this Agreement on behalf of Consultant.

36. Waiver. The waiver by the City of any breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach.

SIGNATURES FOLLOW ON NEXT PAGE
337
9 IN WITNESS WHEREOF, the parties have executed this Agreement in Redondo Beach, California, as of this 19th day of November, 2024.

CITY OF REDONDO BEACH, ROY E. COLBERT,
a chartered municipal corporation a licensed architect
_____________________________ By: _______________________ James A. Light, Mayor Name:_______________________
Title: _______________________
ATTEST: APPROVED:
_____________________________ _____________________________ Eleanor Manzano, City Clerk Diane Strickfaden, Risk Manager APPROVED AS TO FORM:
_____________________________
Michael W. Webb, City Attorney
Architect Owner
Roy E. Colbert
338
10 EXHIBIT “A”

PROJECT DESCRIPTION AND SCOPE OF SERVICES
I. CONSULTANT’S DUTIES
Consultant shall perform the following services.

A. Consultant shall provide on-call professional design services, including architectural design, drafting, and related administrative services.

B. At the City’s discretion, structural design, and ancillary tasks related to design work such as, design review and plan check, bid analysis and support, capital improvement program project management and construction observation may also be included. Upon City’s written request as described in Section II.A, Consultant shall prepare a written scope of work for the City’s requested tasks, including all components and subtasks, the cost to perform the task, including costs and markup from sub-consultants, an explanation of how the cost was determined, and a schedule for completion of the task (collectively "Task Proposal").

The costs specified in the Task Proposal shall be in accordance with Exhibit “C”.

C. Upon the City’s written approval of the Task Proposal, the Consultant shall commence services for the task. Any language that does not pertain to the scope of work, compensation, or duration of agreement shall be deemed extraneous and not incorporated within this Agreement.

D. Consultant shall identify all personnel used to accomplish the services in the Task Proposal. Consultant shall obtain City’s approval of any substitutions of leading personnel for the task as soon as the need for a substitution is known.

E. Consultant shall identify any subcontractor(s) and include the work of subcontractors in the proposed scope of work. Consultant shall not replace the subcontractor for the task without the prior written approval of the City.

F. Consultant shall provide a task number for the City Engineer or designee approved task.

G. Consultant shall complete the task and present all deliverables to the City by the completion date provided to City.

H. During performance of the services, Consultant shall provide a bi-weekly written summary of progress on all on-call services to keep the City 339
11 updated as to the status of performance. Consultant shall either draft a report or deliver an email to the City’s designated project manager.

I. Consultant shall provide all work product for review and acceptance by the City. Upon City’s request, Consultant shall revise the work product without additional charge to the City until the City accepts it.

II. CITY’S DUTIES
City will perform the following services.

A. City will provide a written task request with a description of the work to be performed for the task, and the time desired for completion.

B. City, in its sole discretion, may approve, modify or reject the Consultant’s Task Proposal.

C. Notwithstanding anything described herein, in the event Article XIX of the City Charter and Chapters 6 and 6.1 of Title 2 of the Redondo Beach Municipal Code apply to the work described herein, the Consultant shall not be authorized to perform the subject work under this Agreement. 340
12 EXHIBIT "B"

TERM AND TIME OF COMPLETION
TERM. The term of this Agreement shall commence on November 19, 2024 and continue through November 18, 2026 (“Term”), unless otherwise terminated as herein provided. Consultant shall perform the services in accordance with the schedule in each Task Proposal. City may approve extensions for performance of the services in each task; provided, however, that the Consultant shall not work beyond the expiration date of this Agreement.
341
13 EXHIBIT "C"

COMPENSATION
Provided Consultant is not in default under this Agreement, Consultant shall be compensated as provided below.

I. AMOUNT. Consultant shall perform the work for all City Engineer or designee approved Task Proposal(s) in accordance with the hourly rate schedule attached to and incorporated into Exhibit “C” of the Agreement.

II. EXPENSES. Consultant shall be reimbursed for expenses in accordance with the attached schedule. If Consultant requires reimbursement for expenses not provided on the rate schedule in the Agreement, including but not limited to, reproduction costs, and subcontractor markup, Consultant shall not be reimbursed without a subsequent written amendment, which shall be at the sole discretion of the City.

III. NOT TO EXCEED AMOUNT. In no event shall the total amount paid to the Consultant, including reimbursable expenses, exceed $100,000 during the term of this Agreement and any amendments hereto.

IV. METHOD OF PAYMENT. Consultant shall provide monthly invoices to City for approval and payment for those services performed in the month prior to invoice submission. Invoices must include the following information.

A. Task number.

B. All personnel who performed work on the Task.

C. Description of the work performed.

D. Number of hours worked.

E. Hourly rate.

F. All City approved and documented subcontractor invoices.

G. If applicable, expenses incurred.

Invoices must be itemized, adequately detailed, be based on the work performed and time spent in the prior month, and in a form reasonably satisfactory to the City.

Invoices must attach the prior written authorization of the City and copies of receipts to substantiate expense requests. Consultant may be required to provide back-up material upon request. If no work is performed in a given month, no invoice is required.

Within the approved amount of each approved Task Proposal, and with the written approval of the city, a portion of the amount from the line item of the task may be allocated to another line item task so long as the total amount approved for the Task Proposal as described in Exhibit “A” of the Agreement in not exceeded. 342
14 V. SCHEDULE FOR PAYMENT. City agrees to pay Consultant within thirty (30) days after receipt of Consultant’s monthly invoice; provided, however, that services are completed to the City’s reasonable satisfaction and there is no dispute over the amount.

VI. NOTICE. Written notices to City and Consultant shall be given by registered or certified mail, postage prepaid, email, or personally served, and addressed to the following parties.

Consultant: Roy E. Colbert
2590 East Main Street, Suite 100
Ventura, CA 93003
Email: [email protected]
City: City of Redondo Beach
415 Diamond Street
Redondo Beach, CA 90277
Attention: Lauren Sablan, Acting City Engineer
Email: [email protected]
All notices, including notices of address changes, provided under this Agreement are deemed received as follows: (1) on the second business day after emailing, provided that no “bounce-back” or similar message indicating non-delivery is received; (2) on the third day after mailing if sent by registered or certified mail; or (3) upon personal delivery. Changes in the respective address set forth above may be made from time to time by any party upon written notice to the other party in accordance with this section.
343
15 EXHIBIT “D”

INSURANCE REQUIREMENTS FOR CONSULTANTS
Without limiting Consultant's indemnification obligations under this Agreement, Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

Minimum Scope of Insurance
Coverage shall be at least as broad as:

Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).

Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).

Workers' Compensation insurance as required by the State of California.

Employer's Liability Insurance.

Errors and Omissions liability insurance appropriate to the consultant's profession.

Architects' and Engineers' coverage is to be endorsed to include contractual liability.

Minimum Limits of Insurance
Consultant shall maintain limits no less than:

General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply separately to this project/location.

Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

Employer's Liability: $1,000,000 per accident for bodily injury or disease.

Errors and Omissions liability: $1,000,000 per occurrence.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, 344
16 employees and volunteers or (2) the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.

Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Endorsement:

General Liability: The City, its officers, elected and appointed officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of work performed by or on behalf of the Consultant. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance, or as a separate owner's policy.

Automobile Liability: The City, its officers, elected and appointed officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Consultant.

For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, elected and appointed officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.

Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City.

Each insurance policy shall be endorsed to state that the inclusion of more than one insured shall not operate to impair the rights of one insured against another insured, and the coverages afforded shall apply as though separate policies had been issued to each insured.

Errors and Omissions policy, if written on a claims made basis, shall be maintained by the Consultant for a period of one year after the completion of the project.

Each insurance policy shall be in effect prior to awarding the contract and each insurance policy or a successor policy shall be in effect for the duration of the project.

The maintenance of proper insurance coverage is a material element of the contract and failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract on the Consultant's part. 345
17 Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII and which are authorized to transact insurance business in the State of California by the Department of Insurance.

Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on the City authorized forms provided with the contract specifications. Standard ISO forms which shall be subject to City approval and amended to conform to the City's requirements may be acceptable in lieu of City authorized forms. All certificates and endorsements are to be received and approved by the City before the contract is awarded. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

Subcontractors
Consultant shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

Risk Management
Consultant acknowledges that insurance underwriting standards and practices are subject to change, and the City reserves the right to make changes to these provisions in the reasonable discretion of its Risk Manager.
346
CERT(Rev4) (08/11)

CERTIFICATE OF INSURANCE
ISSUE DATE: October 16, 2024
Producer
James Tovias

JAMES TOVIAS STATE FARM AGENCY
145 S 8th St
Santa Paula, CA 93060-2738
Producer Code #: 551681
Producer Fax #.: (805) 933-2085

THIS CERTIFICATE IS ISSUED AS A MATTER OF

INFORMATION ONLY AND CONFERS NO RIGHTS UPON
THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES

NOT AMEND, EXTEND OR ALTER THE COVERAGE,

TERMS, EXCLUSIONS AND CONDITIONS AFFORDED BY
THE POLICIES BELOW.

INSURER AFFORDING COVERAGE
State Farm Fire and Casualty Company
BLOOMINGTON, IL Named Insured
ROY E. COLBERT, ARCHITECT
2590 E Main Street, Suite 100
Ventura, CA 93003

COVERAGES

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR

CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE

ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICY(IES) DESCRIBED HEREIN IS SUBJECT TO ALL THE COVERAGE, TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

POLICY NUMBER POLICY EFFECTIVE DATE POLICY EXPIRATION DATE PS0000006821403 June 1, 2024 June 1, 2025

TYPE OF INSURANCE LIMIT OF LIABILITY
Architects and Engineers Professional Liability Insurance Policy
$2,000,000 - Limit of Liability Each Claim
$2,000,000 - Total Limit of Liability

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE

CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE
ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS

WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO

THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL

IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON
THE INSURER, ITS AGENTS OR REPRESENTATIVES.

AUTHORIZED REPRESENTATIVE
City of Redondo Beach
536 North Gertruda Ave,
Redondo Beach, CA 90277
347
348
349
CERT(Rev4) (08/11)

CERTIFICATE OF INSURANCE
ISSUE DATE: October 16, 2024
Producer
James Tovias

JAMES TOVIAS STATE FARM AGENCY
145 S 8th St
Santa Paula, CA 93060-2738
Producer Code #: 551681
Producer Fax #.: (805) 933-2085

THIS CERTIFICATE IS ISSUED AS A MATTER OF

INFORMATION ONLY AND CONFERS NO RIGHTS UPON
THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES

NOT AMEND, EXTEND OR ALTER THE COVERAGE,

TERMS, EXCLUSIONS AND CONDITIONS AFFORDED BY
THE POLICIES BELOW.

INSURER AFFORDING COVERAGE
State Farm Fire and Casualty Company
BLOOMINGTON, IL Named Insured
ROY E. COLBERT, ARCHITECT
2590 E Main Street, Suite 100
Ventura, CA 93003

COVERAGES

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR

CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE

POLICY NUMBER POLICY EFFECTIVE DATE POLICY EXPIRATION DATE PS0000006821403 June 1, 2024 June 1, 2025

TYPE OF INSURANCE LIMIT OF LIABILITY
Architects and Engineers Professional Liability Insurance Policy
$2,000,000 - Limit of Liability Each Claim
$2,000,000 - Total Limit of Liability

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE

CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE
ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS

WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO

THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL

IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON
THE INSURER, ITS AGENTS OR REPRESENTATIVES.

AUTHORIZED REPRESENTATIVE
City of Redondo Beach
536 North Gertruda Ave,
Redondo Beach, CA 90277
350
Administrative
Report
H.10., File # 24-1832 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: MIKE COOK, INFORMATION TECHNOLOGY DIRECTOR
TITLE

APPROVE AN AMENDMENT TO THE AGREEMENT FOR PROJECT SERVICES WITH LEWIS STANLEY, INC., DBA MINUTEMAN PRESS REDONDO BEACH, TO EXTEND THE TERM BY A YEAR, THROUGH SEPTEMBER 19, 2026, AND INCREASE THE NOT TO EXCEED AMOUNT FROM $34,999 TO $64,999

EXECUTIVE SUMMARY
On September 19, 2023, the City Council approved an agreement with Lewis Stanley, Inc. (DBA Minuteman Press of Redondo Beach) for on-call production and high-volume printing services, on an as-needed basis, in support of various City operations including, but not limited to, printing business cards, letterhead, envelopes, brochures, newsletters, postcards, business forms, flyers, posters, banners, signs, graphics, and branded items. Lewis Stanley, Inc. is a local business with a state-ofthe-art facility and has performed well for the City, including the majority of all print production related services for the City’s new logo and brand mark. The proposed amendment will add an additional $30,000 to the existing Agreement’s compensation limit and extend the term from September 19, 2025 to September 19, 2026.

BACKGROUND
The Information Technology Department has historically staffed and maintained an in-house print shop for the production of high-volume documents necessary for City operations. A decision was made to pilot outsourcing the bulk of the City’s print operations in an effort to avoid the costs of replacing, maintaining, and staffing the existing print shop as well as to make better use of the physical space. Since partnering with Lewis Stanley, Inc., overall production printing costs have decreased while quality and turnaround times have improved.

With the City moving toward paperless forms and transactions, staff recommends amending the current Agreement to include funding and term for an additional year of services.

COORDINATION
Information Technology staff coordinated the preparation of the Agreement with Departments that routinely request print services. The Agreement has been approved as to form by the City Attorney’s Office.

FISCAL IMPACT
Funding for the proposed amendment is available in the Information Technology Department’s FY 2024-25 Adopted Budget. The total not to exceed amount of the Agreement would increase from

Page 1 of 2 ends

351
H.10., File # 24-1832 Meeting Date: 11/19/2024
2024-25 Adopted Budget. The total not to exceed amount of the Agreement would increase from $34,999 to $64,999.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Agmt - First Amendment to the Agreement with Lewis Stanley, Inc., DBA Minuteman Press Redondo Beach, LLC for On-Call Production and High-Volume Printing Services · Agmt - Original Agreement with Lewis Stanley, Inc., DBA Minuteman Press Redondo Beach, LLC for On-Call Production and High-Volume Printing Services, September 19, 2023 · Insurance - Lewis Stanley, Inc., DBA Minuteman Press Redondo Beach, LLC

Page 2 of 2 ends

352
Administrative
Report
H.10., File # 24-1832 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: MIKE COOK, INFORMATION TECHNOLOGY DIRECTOR
TITLE

With the City moving toward paperless forms and transactions, staff recommends amending the current Agreement to include funding and term for an additional year of services.

Page 1 of 2 ends

353
H.10., File # 24-1832 Meeting Date: 11/19/2024
2024-25 Adopted Budget. The total not to exceed amount of the Agreement would increase from $34,999 to $64,999.

APPROVED BY:

Mike Witzansky, City Manager

Page 2 of 2 ends

354

FIRST AMENDMENT TO THE

AGREEMENT FOR PROJECT SERVICES
BETWEEN THE CITY OF REDONDO BEACH AND LEWIS STANLEY, INC. DBA

MINUTEMAN PRESS REDONDO BEACH
THIS FIRST AMENDMENT TO THE AGREEMENT FOR PROJECT SERVICES ("First Amendment") is made between the City of Redondo Beach, a chartered municipal corporation ("City") and Lewis Stanley, Inc., a California corporation dba Minuteman Press Redondo Beach ("Contractor").

WHEREAS, on September 19, 2023, the parties hereto originally entered into the Agreement for Project Services between the City and Contractor (the "Agreement"), which established the Contractor’s compensation limit at $34,998.69; and WHEREAS, the parties hereto wish to amend the Agreement.

NOW THEREFORE, in consideration of the promises and mutual covenants contained herein, and intending to be legally bound, the parties hereby agree to make the following amendments to the Agreement:

1. TERM. Exhibit “B” of the Agreement is hereby amended to add Exhibit "B-1", which extends the Agreement to September 19, 2026. Exhibit “B-1” is attached hereto and incorporated by reference. Contractor shall commence and complete all services described in Exhibit “A” of the Agreement in accordance with the schedule set forth in Exhibit "B-1".

2. COMPENSATION. Exhibit "C" of the Agreement is hereby amended to add Exhibit “C-1”, which increases Contractor’s compensation by $30,000, thereby setting a new limit of $64,998.69, and amends the notice provisions. Exhibit “C-1” is attached hereto and incorporated by reference. Contractor shall be compensated for the services described in Exhibit “A”.

3. NO OTHER AMENDMENTS. Except as expressly stated herein, the Agreement shall remain unchanged and in full force and effect. The Agreement and this First Amendment constitute the entire agreement between the parties and supersede any previous oral or written agreements with respect to the subject matter hereof. In the event of any inconsistency between the terms of the Agreement and this First Amendment, the terms of this First Amendment shall govern. [SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the parties have executed this First Amendment in Redondo Beach, California, as of this 19th day of November, 2024.

CITY OF REDONDO BEACH, LEWIS STANLEY, INC., a California a chartered municipal corporation corporation dba Minuteman Press Redondo Beach
__________________________ By: _______________________
James A. Light, Mayor Name: _______________________
Title: _______________________
ATTEST: APPROVED:
__________________________ __________________________
Eleanor Manzano, City Clerk Diane Strickfaden, Risk Manager APPROVED AS TO FORM:
__________________________
Michael W. Webb, City Attorney
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EXHIBIT “B-1”

SCHEDULE FOR COMPLETION
TERM. The term of the Agreement shall be extended to September 19, 2026, unless otherwise terminated as herein provided.
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EXHIBIT "C-1"

COMPENSATION
Provided Contractor is not in default under this Agreement, Contractor shall be compensated as provided below.

1. AMOUNT. Contractor shall be paid in accordance with the schedule attached to the Agreement. The prices are subject to an annual increase of up to 5%. Prior to the commencement of work, Contactor shall submit a quote for the cost of services per service order, which must be approved by the City. Notwithstanding the foregoing, in the event there are extreme market conditions beyond the Contractor’s reasonable control, including tax escalations, newly enacted legislation affecting employee expenses, or other circumstances causing an elevation is supplier or material costs, Contractor may request additional increases beyond the 5% cap. However, no modification shall be effective, unless both parties execute a subsequent written amendment

2. NOT TO EXCEED AMOUNT. In no event shall the total compensation paid to Contractor exceed $64,998.69 under the Agreement, as amended by this First Amendment.

3. METHOD OF PAYMENT. Contractor shall provide monthly invoices indicating the services and tasks performed during the prior month to City for approval and payment.

Invoices shall provide service order number, description of item, size, stock, color specification, quantity, unit cost, price, subtotal, and total cost. Invoices must be itemized, adequately detailed, based on accurate records, and in a form reasonably satisfactory to City. Contractor may be required to provide back-up material upon request.

4. SCHEDULE FOR PAYMENT. City agrees to pay Contractor within sixty (60) days after City’s receipt of the invoice, provided however, that the work has been completed to the City’s full satisfaction.

5. NOTICE. Written notices to City and Contractor shall be given by registered or certified mail, postage prepaid, email, or personally served, and addressed to the following parties.

Contractor: Minuteman Press
2633 Manhattan Beach Blvd.

Redondo Beach, CA 90277
Attention: James Frost
Email: [email protected]

City: City of Redondo Beach
Information Technology Department
415 Diamond St.

Redondo Beach, CA 90277
358
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Attention: Michael Cook, Information Technology Director Email: [email protected]
All notices, including notices of address changes, provided under this Agreement are deemed received as follows: (1) on the second business day after emailing, provided that no “bounce-back” or similar message indicating non-delivery is received; (2) on the third day after mailing if sent by registered or certified mail; or (3) upon personal delivery. Changes in the respective address set forth above may be made from time to time by any party upon written notice to the other party in accordance with this section. 359
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AGREEMENT FOR PROJECT SERVICES

BETWEEN THE CITY OF REDONDO BEACH
AND LEWIS STANLEY, INC. DBA MINUTEMAN PRESS REDONDO BEACH THIS AGREEMENT FOR PROJECT SERVICES (this "Agreement”) is made between the City of Redondo Beach, a chartered municipal corporation ("City") and Lewis Stanley, Inc., a California corporation dba Minuteman Press Redondo Beach (“Contractor”).

The parties hereby agree as follows:

A. Scope of Services. The project description or scope of services to be provided by Contractor, and any corresponding responsibilities of City or services required to be performed by City are set forth in Exhibit "A”.

B. Term and Time of Completion. Contractor shall commence and complete the project or services described in Exhibit "A" in accordance with the schedule set forth in Exhibit "B".

C. Compensation. City agrees to pay Contractor for work performed in accordance with Exhibit "C”.
* * * * *

GENERAL PROVISIONS

1. Independent Contractor. Contractor acknowledges, represents and warrants that Contractor is not a regular or temporary employee, officer, agent, joint venturer or partner of the City, but rather an independent contractor. This Agreement shall not be construed as a contract of employment. Contractor shall have no rights to any benefits which accrue to City employees unless otherwise expressly provided in this Agreement. Due to the independent contractor relationship created by this Agreement, the City shall not withhold state or federal income taxes, the reporting of which shall be Contractor's sole responsibility.

2. Brokers. Contractor acknowledges, represents and warrants that Contractor has not hired, retained or agreed to pay any entity or person any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this Agreement.

3. City Property. All plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials prepared for or obtained pursuant to this Agreement shall upon request be delivered to the City within a reasonable time, and the rights thereto shall be deemed assigned to the City. If applicable, Contractor shall prepare check prints upon request. Said plans, drawings, reports, calculations, data, specifications, videos, graphics or other materials 360
- 2 -
shall be specific for the project herein and shall not be used by the City for any other project without Contractor's consent. Notwithstanding the foregoing, Contractor shall not be obligated to assign any proprietary software or data developed by or at the direction of Contractor for Contractor's own use; provided, however, that Contractor shall, pursuant to Paragraph 14 below, indemnify, defend and hold the City harmless from and against any discovery or Public Records Act request seeking the disclosure of any such proprietary software or data.

Inspections by the City shall not relieve or minimize the responsibility of Contractor to conduct any inspections Contractor has agreed to perform pursuant to the terms of this Agreement. Contractor shall be solely liable for said inspections performed by Contractor. Contractor shall certify in writing to the City as to the completeness and accuracy of each inspection required to be conducted by Contractor hereunder.

5. Services. The project or services set forth in Exhibit "A" shall be performed to the full satisfaction and approval of the City. In the event that the project or services set forth in Exhibit "A" are itemized by price in Exhibit "C”, the City in its sole discretion may, upon notice to Contractor, delete certain items or services set forth in Exhibit "A", in which case there shall be a corresponding reduction in the amount of compensation paid to Contractor. City shall furnish Contractor, to the extent available, with any City standards, details, specifications and regulations applicable to the Project and necessary for the performance of Contractor's services hereunder. Notwithstanding the foregoing, any and all additional data necessary for design shall be the responsibility of Contractor.

6. Records. Contractor, including any of its subcontractors, shall maintain full and complete documents and records, including accounting records, employee time sheets, work papers, and correspondence pertaining to the project or services set forth in Exhibit "A". Contractor, including any of its subcontractors, shall make such documents and records available for City review or audit upon request and reasonable notice, and shall keep such documents and records, for at least four (4) years after Contractor's completion of performance of this Agreement. Copies of all pertinent reports and correspondence shall be furnished to the City for its files.

7. Changes and Extra Work. All changes and/or extra work under this Agreement shall be provided for by a subsequent written amendment executed by City and Contractor.

361
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8. Additional Assistance. If this Agreement requires Contractor to prepare plans and specifications, Contractor shall provide assistance as necessary to resolve any questions regarding such plans and specifications that may arise during the period of advertising for bids, and Contractor shall issue any necessary addenda to the plans and specifications as requested. In the event Contractor is of the opinion that City's requests for addenda and assistance is outside the scope of normal services, the parties shall proceed in accordance with the changes and extra work provisions of this Agreement.

9. Professional Ability. Contractor acknowledges, represents and warrants that Contractor is skilled and able to competently provide the services hereunder, and possesses all professional licenses, certifications, and approvals necessary to engage in its occupation. City has relied upon the professional ability and training of Contractor as a material inducement to enter into this Agreement.

Contractor shall perform in accordance with generally accepted professional practices and standards of Contractor's profession.

10. Business License. Contractor shall obtain a Redondo Beach Business License before performing any services required under this Agreement. The failure to so obtain such license shall be a material breach of this Agreement and grounds for immediate termination by City; provided, however, that City may waive the business license requirement in writing under unusual circumstances without necessitating any modification of this Agreement to reflect such waiver.

11. Termination Without Default. Notwithstanding any provision herein to the contrary, the City may, in its sole and absolute discretion and without cause, terminate this Agreement at any time prior to completion by Contractor of the project or services hereunder, immediately upon written notice to Contractor. In the event of any such termination, Contractor shall be compensated for: (1) all authorized work satisfactorily performed prior to the effective date of termination; and (2) necessary materials or services of others ordered by Contractor for this Agreement prior to Contractor’s receipt of notice of termination, irrespective of whether such materials or services of others have actually been delivered, and further provided that Contractor is not able to cancel such orders. Compensation for Contractor in such event shall be determined by the City in accordance with the percentage of the project or services completed by Contractor; and all of Contractor's finished or unfinished work product through the time of the City's last payment shall be transferred and assigned to the City. In conjunction with any termination of this Agreement, the City may, at its own expense, make copies or extract information from any notes, sketches, computations, drawings, and specifications or other data, whether complete or not.

12. Termination in the Event of Default. Should Contractor fail to perform any of its obligations hereunder, within the time and in the manner provided or otherwise violate any of the terms of this Agreement, the City may immediately terminate 362
- 4 -
this Agreement by giving written notice of such termination, stating the reasons for such termination. Contractor shall be compensated as provided immediately above, provided, however, there shall be deducted from such amount the amount of damages, if any, sustained by the City by virtue of Contractor's breach of this Agreement.

13. Conflict of Interest. Contractor acknowledges, represents and warrants that Contractor shall avoid all conflicts of interest (as defined under any federal, state or local statute, rule or regulation, or at common law) with respect to this Agreement. Contractor further acknowledges, represents and warrants that Contractor has no business relationship or arrangement of any kind with any City official or employee with respect to this Agreement. Contractor acknowledges that in the event that Contractor shall be found by any judicial or administrative body to have any conflict of interest (as defined above) with respect to this Agreement, all consideration received under this Agreement shall be forfeited and returned to City forthwith. This provision shall survive the termination of this Agreement for one (1) year.

14. Indemnity. To the maximum extent permitted by law, Contractor hereby agrees, at its sole cost and expense, to defend protect, indemnify, and hold harmless the City, its elected and appointed officials, officers, employees, volunteers, attorneys, and agents (collectively “Indemnitees”) from and against any and all claims, including, without limitation, claims for bodily injury, death or damage to property, demands, charges, obligations, damages, causes of action, proceedings, suits, losses, stop payment notices, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever, in any manner arising out of, incident to, related to, in connection with or arising from any act, failure to act, error or omission of Contractor’s performance or work hereunder (including any of its officers, agents, employees, Subcontractors) or its failure to comply with any of its obligations contained in the Agreement, or its failure to comply with any current or prospective law, except for such loss or damage which was caused by the sole negligence or willful misconduct of the City. Contractor’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Contractor or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.
a. Nonwaiver of Rights. Indemnitees do not and shall not waive any rights that they may possess against Contractor because the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.
b. Waiver of Right of Subrogation. Contractor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.
363
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15. Insurance. Contractor shall comply with the requirements set forth in Exhibit "D." Insurance requirements that are waived by the City's Risk Manager do not require amendments or revisions to this Agreement.

16. Non-Liability of Officials and Employees of the City. No official or employee of the City shall be personally liable for any default or liability under this Agreement.

17. Compliance with Laws. Contractor shall comply with all federal, state and local laws, statutes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals, with respect to this Agreement, including without limitation all environmental laws, employment laws, and nondiscrimination laws.

18. Limitations upon Subcontracting and Assignment. Contractor acknowledges that the services which Contractor shall provide under this Agreement are unique, personal services which, except as otherwise provided herein, Contractor shall not assign or sublet to any other party without the prior written approval of City, which approval may be withheld in the City's sole and absolute discretion. In the event that the City, in writing, approves any assignment or subletting of this Agreement or the retention of subcontractors by Contractor, Contractor shall provide to the City upon request copies of each and every subcontract prior to the execution thereof by Contractor and subcontractor. Any attempt by Contractor to assign any or all of its rights under this Agreement without first obtaining the City’s prior written consent shall constitute a material default under this Agreement.

The sale, assignment, transfer or other disposition, on a cumulative basis, of twenty-five percent (25%) or more of the ownership interest in Contractor or twenty-five percent (25%) or more the voting control of Contractor (whether Contractor is a corporation, limited liability company, partnership, joint venture or otherwise) shall constitute an assignment for purposes of this Agreement.

Further, the involvement of Contractor or its assets in any transaction or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Agreement or Contractor’s assets occurs, which reduces Contractor’s assets or net worth by twenty-five percent (25%) or more shall also constitute an assignment for purposes of this Agreement.

19. Subcontractors. Contractor shall provide properly skilled professional and technical personnel to perform any approved subcontracting duties. Contractor shall not engage the services of any person or persons now employed by the City without the prior written approval of City, which approval may be withheld in the City's sole and absolute discretion.

20. Integration. This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes any previous oral or 364
- 6 -
written agreement; provided, however, that correspondence or documents exchanged between Contractor and City may be used to assist in the interpretation of the exhibits to this Agreement.

21. Amendment. This Agreement may be amended or modified only by a subsequent written amendment executed by both parties.

22. Conflicting Provisions. In the event of a conflict between the terms and conditions of this Agreement and those of any exhibit or attachment hereto, this Agreement proper shall prevail. In the event of a conflict between the terms and conditions of any two or more exhibits or attachments hereto, those prepared by the City shall prevail over those prepared by Contractor.

23. Non-Exclusivity. Notwithstanding any provision herein to the contrary, the services provided by Contractor hereunder shall be non-exclusive, and City reserves the right to employ other contractors in connection with the project.

24. Exhibits. All exhibits hereto are made a part hereof and incorporated herein by reference; provided, however, that any language in Exhibit "A" which does not pertain to the project description, proposal, or scope of services (as applicable) to be provided by Contractor, or any corresponding responsibilities of City, shall be deemed extraneous to, and not a part of, this Agreement.

25. Time of Essence. Time is of the essence of this Agreement.

26. Confidentiality. To the extent permissible under law, Contractor shall keep confidential its obligations hereunder and the information acquired during the performance of the project or services hereunder.

27. Third Parties. Nothing herein shall be interpreted as creating any rights or benefits in any third parties. For purposes hereof, transferees or assignees as permitted under this Agreement shall not be considered "third parties."

28. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law. Venue for any litigation or other action arising hereunder shall reside exclusively in the Superior Court of the County of Los Angeles, Southwest Judicial District.

29. Attorneys’ Fees. In the event either party to this Agreement brings any action to enforce or interpret this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys' fees (including expert witness fees) and costs.

This provision shall survive the termination of this Agreement.

30. Claims. Any claim by Contractor against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act 365
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are hereby modified such that the presentation of all claims hereunder to the City shall be waived if not made within six (6) months after accrual of the cause of action.

31. Interpretation. Contractor acknowledges that it has had ample opportunity to seek legal advice with respect to the negotiation of this Agreement. This Agreement shall be interpreted as if drafted by both parties.

32. Warranty. In the event that any product shall be provided to the City as part of this Agreement, Contractor warrants as follows: Contractor possesses good title to the product and the right to transfer the product to City; the product shall be delivered to the City free from any security interest or other lien; the product meets all specifications contained herein; the product shall be free from material defects in materials and workmanship under normal use for a period of one (1) year from the date of delivery; and the product shall be fit for its intended purpose(s). Notwithstanding the foregoing, consumable and maintenance items (such as light bulbs and batteries) shall be warranted for a period of thirty (30) days from the date of delivery. All repairs during the warranty period shall be promptly performed by Contractor, at Contractor's expense, including shipping.

Contractor shall not be liable under this warranty for an amount greater than the amount set forth in Exhibit "C" hereto.

33. Severance. Any provision of this Agreement that is found invalid or unenforceable shall be deemed severed and all remaining provisions of this Agreement shall remain enforceable to the fullest extent permitted by law.

34. Authority. City warrants and represents that upon City Council approval, the Mayor of the City of Redondo Beach is duly authorized to enter into and execute this Agreement on behalf of City. The party signing on behalf of Contractor warrants and represents that he or she is duly authorized to enter into and execute this Agreement on behalf of Contractor, and shall be personally liable to City if he or she is not duly authorized to enter into and execute this Agreement on behalf of Contractor.

35. Waiver. The waiver by the City of any breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach.

SIGNATURES FOLLOW ON NEXT PAGE
366
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IN WITNESS WHEREOF, the parties have executed this Agreement in Redondo Beach, California, as of this 19th day of September, 2023.

CITY OF REDONDO BEACH, LEWIS STANLEY, INC.,
a chartered municipal corporation a California corporation dba Minuteman Press

____________________________ By: _______________________ William C. Brand, Mayor Name: _______________________
Title: _______________________
ATTEST: APPROVED:
____________________________ ____________________________ Eleanor Manzano, City Clerk Diane Strickfaden, Risk Manager APPROVED AS TO FORM:
____________________________
Michael W. Webb, City Attorney
367
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EXHIBIT "A"

PROJECT DESCRIPTION AND/OR SCOPE OF SERVICES
CONTRACTOR’S DUTIES
Contractor shall provide printing, copying and delivery services as requested by the City. This shall include, but not be limited to the following:
• Business Cards
• Letterhead
• Envelopes
• Brochures
• Newsletters
• Postcards
• Business Forms
• Flyers
• Posters
• Banners/Signs
• Graphic Design Services
• Postcards
• Branded items such as Pens and Bags
368
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EXHIBIT "B"

SCHEDULE FOR COMPLETION
TERM. The term of this Agreement shall commence on September 20, 2023 and expire on September 19, 2025, unless otherwise terminated as herein provided. 369
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EXHIBIT "C"

COMPENSATION
Provided Contractor is not in default under this Agreement, Contractor shall be compensated as provided below.

1. AMOUNT. Contractor shall be paid in accordance with the attached schedule. The prices are subject to an annual increase of up to 5%. Prior to the commencement of work, Contactor shall submit a quote for the cost of services per service order, which must be approved by the City. Notwithstanding the foregoing, in the event there are extreme market conditions beyond the Contractor’s reasonable control, including tax escalations, newly enacted legislation affecting employee expenses, or other circumstances causing an elevation is supplier or material costs, Contractor may request additional increases beyond the 5% cap. However, no modification shall be effective, unless both parties execute a subsequent written amendment

2. METHOD OF PAYMENT. Contractor shall provide invoices indicating the services and tasks performed during the prior month to City for approval and payment.

Invoices shall provide service order number, description of item, size, stock, color specification, quantity, unit cost, price, and total cost. Invoices must be itemized, adequately detailed, based on accurate records, and in a form reasonably satisfactory to City. Contractor may be required to provide back-up material upon request.

3. SCHEDULE FOR PAYMENT. City agrees to pay Contractor within sixty (60) days after City’s receipt of the invoice, provided however, that the work has been completed to the City’s full satisfaction.

4. NOTICE. Written notices to City and Contractor shall be given by email, registered or certified mail, postage prepaid and addressed to or personally served on the following parties.

Contractor: Minuteman Press
2633 Manhattan Beach Blvd.

Redondo Beach, CA 90277
Attention: James Frost
Email: [email protected]

City: City of Redondo Beach
Information Technology Department
415 Diamond St.

Redondo Beach, CA 90277
Attention: Michael Cook, Information Technology Director 370
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Email: [email protected]
All notices, including notices of address changes, provided under this Agreement are deemed received on the second business day after email, and the third day after mailing if sent by registered or certified mail. Changes in the respective address set forth above may be made from time to time by any party upon written notice to the other party.
371
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SCHEDULE OF COST
See attached.
372
Minuteman Press Redondo Beach
Sales tax extraStandard production lead time is full business days, delivery is additional business day. Larger quantities can extend lead time. Where artwork creation/updates is udertaken, production lead time commences once artwork is approvedAll orders subject to $5 Print File Handling & Set-up charge - charged per itemFree delivery to Redondo Beach for all orders over $150. $20 delivery charge applies to orders under $150Minimum order charge $35 + $5 Print File Handling & Set-upAll prices assume customer supplied print-ready artworkArtwork - open ended, non fixed priced jobs charged at $125 per hourRush orders can sometimes be accommodated- additional charges may apply Item Size Stock Color Spec Qty Price unit cost Standard
production
lead time Notes
Business Cards 3.5"x 2" 100lb uncoated or 130lb gloss card stock Color 1 side 250 $56.50 4 500 $71.50 4
1000 $91.50 4
Color 2 sides 250 $61.50 4
500 $76.50 4
1000 $96.50 4
Artwork - Business card content update & digital proof 1 $15.00 4 Charged per set
Flyers 8.5" x 11" 60lb uncoated text, no bleed Color 1 side 250 $75.00 $0.300 4 500 $125.00 $0.250 4
1000 $200.00 $0.200 4
Color 2 sides 250 $87.50 $0.350 4
500 $150.00 $0.300 4
1000 $250.00 $0.250 4
Flyers 8.5" x 11" 100lb gloss text, full bleed Color 1 side 250 $112.50 $0.450 4 500 $200.00 $0.400 4
1000 $300.00 $0.300 4
Color 2 sides 250 $131.25 $0.525 4
500 $237.50 $0.475 4
1000 $375.00 $0.375 4
B&W Prints/Copies 8.5" x 11" 20lb bond, no bleed B&W 1 side 250 $37.50 $0.150 4 500 $60.00 $0.120 4
1000 $100.00 $0.100 4
1 of 3
373
Item Size Stock Color Spec Qty Price unit cost
Standard
production
lead time Notes
B&W 2 sides 250 $43.75 $0.175 4
500 $70.00 $0.140 4
1000 $120.00 $0.120 4
Letterhead 8.5" x 11" 70lb uncoated text, no bleed Color 1 side 1000 $250.00 $0.250 4 2000 $400.00 $0.200 4
70lb uncoated text, full bleed Color 1 side 1000 $300.00 $0.300 4 2000 $500.00 $0.250 4
Posters 11" x 17" 100lb gloss text, full bleed Color 1 side 50 $100.00 $2.000 4 100 $150.00 $1.500 4250 $250.00 $1.000 4
Posters 18" x 24" 8 Mil digital poster paper Color 1 side 1 $24.38 $24.380 3 24" x 36" 1 $45.00 $45.000 318" x 24" 3/16 foamcore (rigid) Color 1 side 1 $31.50 $31.500 324" x 36" 1 $57.75 $57.750 3 Plan prints 24" x 36" 20lb bond B&W 1 side 1-25 $3.50 each 2 26-100 $2.75 each 2
101+ $2.50 each 2
Staple bind 1 $2.50 per set 2
Envelopes #10 regular24lb white wove regular gummed B&W 1 side 500 $115.00 $0.230 5 (front print) 1000 $170.00 $0.170 5
2500 $360.00 $0.144 5
Color 1 side 500 $150.00 $0.300 5(front print) 1000 $240.00 $0.240 5 2500 $535.00 $0.214 5
#10 Windo 24lb white wove window gummed B&W 1 side 500 $135.00 $0.270 5 (front print) 1000 $210.00 $0.210 5
2500 $460.00 $0.184 5
Color 1 side 500 $170.00 $0.340 5(front print) 1000 $280.00 $0.280 5 2500 $635.00 $0.254 4
Carbonless forms 8.5"x 11" 2 part NCR (white/canary) B&W 1 side 500 $250.00 $0.500 4 1000 $400.00 $0.400 42500 $687.50 $0.275 4
Carbonless forms 8.5"x 5.5" 2 part NCR (white/canary) B&W 1 side 500 $175.00 $0.350 4 1000 $300.00 $0.300 4
2 of 3
374
Item Size Stock Color Spec Qty Price unit cost
Standard
production
lead time Notes
2500 $500.00 $0.200 4
Carbonless forms 8.5"x 11" 3 part NCR (white/canary/pink) B&W 1 side 500 $350.00 $0.700 4 1000 $600.00 $0.600 42500 $1,187.50 $0.475 4
Tri-fold brochures 8.5"x 11"
100lb gloss text, full bleed tri-folded to 8.5"x3.66" Color 2 sides 250 $200.00 $0.800 4 500 $300.00 $0.600 4
1000 $475.00 $0.475 4
Half-fold brochures 11"x 17"
100lb gloss text, full bleed half-folded to 8.5"x11" Color 2 sides 250 $287.50 $1.150 4 500 $500.00 $1.000 4
1000 $750.00 $0.750 4
Half-fold brochures 11"x 17"
100lb gloss card stock, full bleed halffolded to 8.5"x11" Color 2 sides 250 $375.00 $1.500 4 500 $600.00 $1.200 4
1000 $950.00 $0.950 4
Postcards 6" x 4" 130lb gloss card stock, full bleed Color 2 sides 500 $150.00 $0.300 4 1000 $250.00 $0.250 42500 $437.50 $0.175 4
Postcards 5" x 7" 130lb gloss card stock, full bleed Color 2 sides 500 $200.00 $0.400 4 1000 $350.00 $0.350 42500 $575.00 $0.230 4
Postcards 5.5" x 11" 130lb gloss card stock, full bleed Color 2 sides 500 $250.00 $0.500 4 1000 $425.00 $0.425 42500 $750.00 $0.300 4
3 of 3
375
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EXHIBIT “D”

INSURANCE REQUIREMENTS FOR CONTRACTORS
Without limiting Contractor’s indemnification obligations under this Agreement, Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees.

Minimum Scope of Insurance
Coverage shall be at least as broad as:

Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).

Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).

Workers’ Compensation insurance as required by the State of California.

Employer’s Liability Insurance.

Minimum Limits of Insurance
Contractor shall maintain limits no less than:

General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply separately to this project.

Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers or (2) the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
376
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Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Endorsement:

General Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of work performed by or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance, or as a separate owner’s policy.

Automobile Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor.

For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance as respects the City, its officers, elected and appointed officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

Each insurance policy shall be in effect prior to awarding the contract and each insurance policy or a successor policy shall be in effect for the duration of the project.

Acceptability of Insurers
Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than A:VII and which are authorized to transact insurance business in the State of California by the Department of Insurance.
377
- 16 -
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on the City authorized forms provided with the contract specifications. Standard ISO forms which shall be subject to City approval and amended to conform to the City’s requirements may be acceptable in lieu of City authorized forms. All certificates and endorsements shall be received and approved by the City before the contract is awarded. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

Subcontractors
Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

Risk Management
Contractor acknowledges that insurance underwriting standards and practices are subject to change, and the City reserves the right to make changes to these provisions in the reasonable discretion of its Risk Manager.
378

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A : NAIC #
NAME: CONTACT
(A/C, No): FAX
E-MAIL ADDRESS:

PRODUCER
(A/C, No, Ext): PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A

SUBR WVDADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person) COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOS ONLY AUTOS NON-OWNED OWNED SCHEDULED

ANY AUTO

AUTOMOBILE LIABILITY

Y / N WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $ AGGREGATE $
$
OCCUR
CLAIMS-MADE DED RETENTION $
PRODUCTS - COMP/OP AGG $ GENERAL AGGREGATE $ PERSONAL & ADV INJURY $ MED EXP (Any one person) $
EACH OCCURRENCE $ DAMAGE TO RENTED
PREMISES (Ea occurrence) $ COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
20508 06/09/2024 Valley Forge Insurance Company $4,000,000 3107515979 3107515979 $4,000,000 $10,000 $1,000,000 7038411860 06/09/2023 $2,000,000 Lewis Stanley Inc. 2633 Manhattan Beach Blvd, Redondo Beach CA 90278 SmartPath Insurance 09/19/2023 ✔ The City of Redondo Beach, its elected and appointed officials, officers employees and volunteers as additional insured
City of Redondo Beach, 415 Diamond Street, Redondo Beach, CA 90277 [email protected] $2,000,000 Hawthorne, CA 90250 Richard Nguyen Insurance Agency LLC 5364 Rosecrans Avenue A
379
Administrative
Report
H.11., File # 24-1704 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: EUGENE SOLOMON, CITY TREASURER
TITLE
APPROVE THE CITY'S STATEMENT OF INVESTMENT POLICY 2024, AS AMENDED

EXECUTIVE SUMMARY
The City Treasurer strives to maintain a well-balanced and diversified investment portfolio that meets the investment criteria and performance objectives of the City's Statement of Investment Policy.

The governing body of public funds should regularly review and approve investment guidelines. The City Council approves the City’s Statement of Investment Policy annually.

California Government Code Section 53646(a)(2) states that the treasurer or chief fiscal officer of a local agency may annually render to his/her legislative body and any oversight committee an investment policy, that the legislative body shall consider at a public meeting. This raises questions about whether or not the policy should be adopted officially by the legislative body, and the time during the year that this “consideration” should take place.

The consensus recommendation of the California Debt and Investment Advisory Commission (CDIAC) states: “An investment policy should always be in place. While not required by statute, it is in the best interest of the local agency to present and discuss the policy with the agency’s legislative body or oversight committee, and then have the policy approved by a vote of the legislative body. A public vote signifies that the legislative body shares fiduciary responsibility with the treasurer, increases the authority and legitimacy of the investment policy, and provides transparency and disclosure.”

BACKGROUND
Section 23 of the City's Investment Policy specifies that the City Treasurer present the City's statement of investment policy for annual review and adoption by the City Council, as well as annual review by the Budget and Finance Commission. Review of the investment policy incorporates input and analysis of the State of California government code; Legislative changes impacting investment management enacted in 2024; and information from the California Debt and Investment Advisory Committee's (CDIAC) annual update of local agency investment policy guidelines. Local Agency Investment Guidelines may be found at: <http://www.treasurer.ca.gov/cdiac/LAIG/guideline.pdf>.

The City Treasurer recommends the addition of Section N.

N. Joint Powers Authority Maximum Limit 20%
The City may invest up to 20% of its portfolio in shares issued by a Joint Powers Authority,

Page 1 of 2 ends

380
H.11., File # 24-1704 Meeting Date: 11/19/2024
The City may invest up to 20% of its portfolio in shares issued by a Joint Powers Authority, established under California Government Code Section 6509.7. These investments must meet the following:

1. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the Joint Powers Authority.

2. The Joint Powers Authority issuing the shares must retain an investment adviser meets all of the following criteria:
(a) Is registered or exempt from registration with the Securities and Exchange Commission (SEC).
(b) Has a minimum of five years of experience investing in the securities and obligations authorized in sections (a) to (r) of California Government Code Section 53601.
(c) Manages assets under in excess of five hundred million dollars ($500,000,000).

The City Treasure recommends the adoption of the City’s Statement of Investment Policy with the addition of Section N related to the share of the City’s portfolio that can be invested in JPAs.

COORDINATION
The City's Statement of Investment Policy was reviewed by the City Attorney’s Office.

FISCAL IMPACT
There is no direct fiscal impact as a result of the review and approval of this investment policy.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Exhibit A - Draft City of Redondo Beach Statement of Investment Policy 2024

Page 2 of 2 ends

381
Administrative
Report
H.11., File # 24-1704 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: EUGENE SOLOMON, CITY TREASURER
TITLE
APPROVE THE CITY'S STATEMENT OF INVESTMENT POLICY 2024, AS AMENDED

The governing body of public funds should regularly review and approve investment guidelines. The City Council approves the City’s Statement of Investment Policy annually.

The City Treasurer recommends the addition of Section N.

N. Joint Powers Authority Maximum Limit 20%
The City may invest up to 20% of its portfolio in shares issued by a Joint Powers Authority,

Page 1 of 2 ends

382
H.11., File # 24-1704 Meeting Date: 11/19/2024
The City may invest up to 20% of its portfolio in shares issued by a Joint Powers Authority, established under California Government Code Section 6509.7. These investments must meet the following:

1. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the Joint Powers Authority.

The City Treasure recommends the adoption of the City’s Statement of Investment Policy with the addition of Section N related to the share of the City’s portfolio that can be invested in JPAs.

COORDINATION
The City's Statement of Investment Policy was reviewed by the City Attorney’s Office.

FISCAL IMPACT
There is no direct fiscal impact as a result of the review and approval of this investment policy.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Exhibit A - Draft City of Redondo Beach Statement of Investment Policy 2024

Page 2 of 2 ends

383
384
City of Redondo Beach Investment Policy Fiscal Year 2024 2 Table of Contents
Introduction and Overview ....................................................................................................... 3 Governing Authority ................................................................................................................. 3 Delegation of Authority ............................................................................................................ 3 Budget and Finance Commission ............................................................................................ 3 Policy Statement ....................................................................................................................... 3 Scope of the Investment Policy ............................................................................................... 4 Objectives .................................................................................................................................. 5 Primary Investment Policy ....................................................................................................... 7 Standard of Prudence ............................................................................................................... 7 Ethics and Conflicts of Interest................................................................................................ 7 Indemnification ......................................................................................................................... 7 Investment Procedures Manual ............................................................................................... 8 Investment Internal Controls .................................................................................................... 8 Safekeeping And Custody of Securities .................................................................................. 8 Authorized Investments ........................................................................................................... 8 Unauthorized Investments .................................................................................................... 14 Portfolio Management Activity ............................................................................................... 14 Collateralization ...................................................................................................................... 15 Registered Investment Advisor Service ................................................................................ 16 Authorized Financial Dealers And Institutions ..................................................................... 16 Monthly and Quarterly Reporting .......................................................................................... 18 Ongoing Training and Education ........................................................................................... 18 Annual Policy Review and Adoption ..................................................................................... 18 Exhibit A: Registered Investment Advisor and Qualified Brokers ...................................... 20 Exhibit B: Glossary of Terms ................................................................................................ 21 Exhibit C: Investment Procedures Manual ........................................................................... 35 385
City of Redondo Beach Investment Policy Fiscal Year 2024 3

1. Introduction
This statement is intended to establish the policies for prudent investment of the City of Redondo Beach’s ("City") funds, and to provide guidelines for suitable investments. The City is located in the South Bay region of the Greater Los Angeles area and has a population of about 68,000.

2. Governing Authority
The City Council is the governing body of the entity.

3. Delegation of Authority
In accordance with the City of Redondo Beach Charter Section 11.1, the City Treasurer is authorized to invest and reinvest the City's funds according to State law; provided, however, that the City Council may adopt investment guidelines by resolution.

The Charter of the City of Redondo Beach and the authority granted by City Council assign the responsibility of investing unexpended surplus cash to the City Treasurer. In the absence of the City Treasurer, the authority to execute investment transactions will be restricted to the Deputy City Treasurer, or other City Treasurer designee, after notification to both the City Council and the Budget and Finance Commission.

4. Budget and Finance Commission
The City's Budget and Finance Commission, within the advisory powers assigned to the Commission by Ordinance, shall serve in an independent investment advisory capacity, providing oversight of the investment activities of the City Treasurer.

The Budget and Finance Commission shall review on a quarterly basis reports submitted by the City Treasurer analyzing the City's Pool and Investment market trends. With respect to the Commission's investment oversight responsibilities, the intended purpose of the Budget and Finance Commission is to serve in an advisory capacity to the City Treasurer and City Council. Serving in this advisory capacity, the Budget and Finance Commission will provide an important oversight role to the function of City Treasurer's management of the City's Pool, ensuring that the investment decisions of the City Treasurer are made in compliance with the established investment policy guidelines contained within this statement of Investment Policy. The Budget and Finance Commission is not authorized to direct investment decisions, or select individual investment advisors, brokers, or dealers.

5. Policy Statement
It is the policy of the City of Redondo Beach to invest public funds not required for immediate day-to-day operations in safe and liquid investments having a market-average rate of return while conforming to all state statutes governing the investment of public funds.

The ultimate goal is to enhance the economic status of the City while protecting its funds.

The investment policies and practices of the City of Redondo Beach are based upon Federal, State, and local law and prudent money management. The primary goals of these policies are:
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City of Redondo Beach Investment Policy Fiscal Year 2024 4 a. To assure compliance with all Federal, State and local laws governing the investment of monies under the control of the City Treasurer.
b. To maintain the principal value of assets entrusted to this office and provide adequate liquidity to meet operating expenditures.
c. It is recognized that within a well-diversified portfolio, at any particular point in time, that security valuations are impacted by changes in interest rates and economic conditions. Accordingly, securities may at times be worth less than original purchase price based on market fluctuations. Recognizing these factors, it is the expressed intention of our investment policy to hold all investments to maturity to ensure the return of all invested principal dollars. Securities shall generally be held until maturity with the following exceptions:
• A security with declining credit may be sold early to minimize loss of principal. • A security swap may be executed if it will increase the quality, yield, or target duration in the portfolio.
• Liquidity needs of the City require that the security be sold. d. In addition, through the maintenance of sufficient diversification of investments, the forced liquidation of investments at a loss will be avoided, if possible. It is further understood,
however, that in the event of the need for a forced liquidation of investments to meet unplanned or unanticipated cash flow demands, a potential loss of investment principal may potentially occur.
e. Within constraints of safety and liquidity, generate a market rate of return within the parameters of this Statement of Investment Policy and the guidelines for suitable investments.

6. Scope of the Investment Policy
This investment policy applies to all financial assets, investment activities and debt issues of the City of Redondo Beach (including funds, which are invested by trustees appointed under debt trust indentures, with direction from the City Treasurer). This policy covers the investment activities of all contingency reserves and inactive cash balances under the direct authority of the City.

All monies entrusted to the City Treasurer will be pooled in a diversified portfolio. The Investment Pool or "Portfolio" will be referred to as the "Pool" throughout the remainder of this document. The City Treasurer and staff will observe, review and react to changing conditions that affect the Pool.

Investments made on a pooled basis include investments of the City and its component units, including the City of Redondo Beach, the Successor Agency to the City Redevelopment Agency, the Parking Authority, the Public Financing Authority, and the Housing Authority. The City's Comprehensive Annual Financial Report identifies the fund types incorporated under the City's investment pool as follows:
æ General Fund
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City of Redondo Beach Investment Policy Fiscal Year 2024 5 æ Special Revenue Funds
æ Debt Service Funds
æ Capital Project Funds
æ Enterprise Funds
æ Internal Service Funds
æ Fiduciary-Agency Funds
æ Any new funds created by the City Council, unless specifically exempted All debt issue proceeds will be invested in accordance with the associated trust indenture, and in such a manner that facilitates arbitrage rebate calculations.

In determining the investment of funds associated with bonded debt issues, debt proceeds will be invested in accordance with the most restrictive investment requirements contained within either the City's investment policy or the associated bond trust indenture.

Excluded from the scope of the City Treasurer's Investment responsibilities are investments related to funds dedicated for Retirement purposes and Deferred Compensation investment funds.

7. Objectives
A. Safety of Principal
Safety of Principal is the foremost objective of the City of Redondo Beach. Each investment transaction shall seek to ensure that capital losses are avoided whether from institution default or broker-dealer default. The City shall seek to preserve principal by mitigating the two types of risk, credit risk and market risk.

1. Credit Risk Credit risk, defined as the risk of loss due to failure of an issuer of a security, shall be mitigated by investing in only very safe institutions and by diversifying the Pool so that the failure of any one issuer would not unduly harm the City's cash flow.

2. Market Risk The risk of market value fluctuations due to overall changes in the general level of interest rates shall be mitigated by limiting the weighted average maturity of the City's Pool to no greater than 2.5 years in a diversified Pool.

B. Liquidity
Liquidity is the second most important objective of the City of Redondo Beach. It is important that an investment contain the feature of being easily sold at any time with a minimal risk of loss of some portion of principal or interest. The City may experience unexpected or unusual circumstances that result in some investments needing to be sold to meet a contingency. Therefore, the City maintains a high degree of liquidity in its pool. To the extent possible, investments will be made so that maturities are compatible with cash flow requirements. To ensure that sufficient investment Pool liquidity is maintained at all times, a minimum of twentyfive percent (25%) of the overall investment Pool’s investments will be maintained in liquid investments in (a) the State Local Agency Investment Fund (LAIF), (b) allowable mutual funds as set forth in Section 15, or (c) securities with a remaining 388
City of Redondo Beach Investment Policy Fiscal Year 2024 6 maturity of one year or less, and (d) a combination. No single investment shall be purchased with a term to maturity at the date of purchase that exceeds 5 years, except as special circumstances dictate and with the expressed approval of the City Council.

C. Maturity Matrix
Maturities of investments will be selected based on liquidity requirements in order to minimize interest rate risk and maximize earnings. Current and expected yield curve analysis will be monitored, and the Pool will be invested accordingly. As a general investment guideline, the following percentages of the Pool should be utilized in the selection of investment maturity sectors:

Maturity Range Suggested Percentage
Less than 1 year Minimum of 25%
Less than 3 years Minimum of 50%
3 years to 5 years Maximum of 50%
Over 5 years City Council Authorization Required
D. Diversification
The City's Pool will be diversified to avoid incurring unreasonable and avoidable risks. The investments will be diversified by security type and institution. Allowable limits for specific securities types and institutions are delineated in paragraph VI of this Investment Policy. The aggregate single institution limit of commercial paper, medium term corporate notes, certificates of deposits over the FDIC limit, and banker’s acceptances, shall not be greater than five percent (5%) of the Pool. In accordance with Section 7.F, maturities shall be laddered to reduce interest rate risk. In a diversified portfolio, occasional measured losses must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.

E. Performance Standard/Benchmark
Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. The City's Pool shall be designed to attain a market-average rate of return through economic cycles. Because the Pool is designed to operate on a 'hold-to-maturity' premise (or passive investment style) and because of the safety, liquidity, and yield priorities, the basis that will be used by the City Treasurer in the periodic purchase of investment instruments to determine whether market yields are being achieved shall be the following book return performance standard and benchmark: The 30 month moving average of the 0-5 Year Treasury Index, using month end values.

F. Timing of Maturities and Maximum Maturities
Investment maturities shall be consistent with the cash flow requirements of the City. Investment maturities will also be timed so that a disproportionate number of investments will not mature simultaneously. In consideration of the timing of investment maturities, the City Treasurer shall select investment maturities utilizing a "laddering" maturity strategy, ensuring a sufficient, well balanced mix of 389
City of Redondo Beach Investment Policy Fiscal Year 2024 7 investment maturities, on a regular basis, consistent with the operating cash flow requirement of the City. The maximum maturity of any security shall not exceed five years unless authorized by the City Council.

8. Primary Investment Philosophy
The primary investment philosophy of the City is to match investment maturities with expected cash outflows.

9. Standard of Prudence
Management of the City's investments is governed by the Prudent Investor Standard as set forth in the California Government Code section 53600.3:
"Except as provided in subdivision (a) of Section 27000 .3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging , selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law."

10. Ethics and Conflicts of Interest
All parties involved in the City's investment process shall seek to act responsibly as custodians of the public trust. The City Treasurer, or if appropriate, the Deputy City Treasurer, shall avoid any transaction that might impair public confidence in the City's ability to govern and manage the investment of public funds in an effective manner, including but not limited to, personal business activity that would impair the City Treasurer or Deputy City Treasurer's ability to make an impartial investment decision. The City Treasurer, Deputy City Treasurer, or other official charged with the responsibility of making investment decisions shall have no vested interest in any investment being made involving public funds of the City, and shall gain no financial benefit from such investment decisions.

The City Treasurer and Deputy City Treasurer shall disclose to the City Council any material interests in the financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City of Redondo Beach.

11. Indemnification
To the fullest extent permitted by law, no investment officer exercising his or her assigned authority with due diligence and prudence, and that acts in accordance with the City's Investment Policy, shall be held personally liable for any individual investment losses or for total Pool losses.
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City of Redondo Beach Investment Policy Fiscal Year 2024 8 Prior to investment, the City Treasurer or designee shall complete an investigation of the pool/fund.

12. Investment Procedures Manual
The City Treasurer will maintain an Investment Procedures Manual as attached in Exhibit C. The purpose of this manual is to provide both current operational details, and a central point of reference, with respect to Treasury Departmental operations associated with the placement, settlement and clearance of all City Investments. The Investment Procedures Manual serves as an operational complement to the City's Statement of Investment Policy, which will be reviewed on an annual basis by both the City Council and the Budget and Finance Commission as provided in Section 23 of this Investment Policy. The City's Independent Auditors will also be provided with a current copy of both the Statement of Investment Policy and the Investment Procedures Manual on an annual basis.

13. Investment Internal Controls
The City Treasurer will maintain a system of internal investment controls and segregation of responsibilities of investment functions in order to assure an adequate system of internal control over the investment function.

Internal controls over investment transactions include a separation of duties so no one person is selecting, executing, and monitoring investment transactions. Investment transactions are reviewed each year by the City's external auditor to ensure internal controls, including compliance with policies, procedures, and applicable laws.

14. Safekeeping And Custody of Securities
The Treasurer shall select one or more financial institutions to provide safekeeping and custodial services for the City, in accordance with the provisions of Section 53608 of the California Government Code. A Safekeeping agreement approved by the City shall be executed with each custodian bank prior to utilizing that bank’s related services. To protect against fraud, embezzlement, or potential losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by a third party bank trust department, acting as agent for the City under the terms of a custody agreement or PSA agreement (repurchase agreement collateral). All trades executed by a dealer will settle delivery vs. payment (DVP) through the City's safekeeping agent.

Upon purchase, sale, or maturity of investment securities, standing settlement instructions are provided to the servicing banks and broker dealers involved in the transactions.

Adherence to these standing settlement instructions ensures accurate and timely settlement of investment security transactions. Standing settlement instructions are restricted in nature, ensuring investment settlements are with established institutions.

15. Authorized Investments
The City shall not enter into any investment transaction that might impair public confidence in the Redondo Beach City government. The City is governed by the California Government Code, Sections 53600 et seq. Except as otherwise provided herein, the maximum maturity period for any of these authorized investments is five years from the 391
City of Redondo Beach Investment Policy Fiscal Year 2024 9 date of the original purchase of the investment. Within the context of these limitations, the following investments are authorized, as further limited herein. The percentage limitations of authorized investment component categories within this investment policy represent percentages following the provision of sufficient Pool liquidity achieved by maintaining at all times a minimum of twenty-five percent (25%) of the overall Pool’s investments in (a) the State Local Agency Investment Fund (LAIF), (b) allowable mutual funds as set forth in Section 15, (c) securities with a remaining maturity of one year or less, and (d) a combination.

A. United States Treasury Obligations No Limit
United States Treasury Bills, Notes and Bonds, certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for payment of principal and interest. This investment is both safe and liquid. There is no percentage limitation of the Pool that can be invested in this category, although a five-year maturity limitation is applicable.

B. United States Agency Obligations No Limit
Government National Mortgage Association (GNMA), the Federal Farm Credit Bank System (FFCB), the Federal Home Loan Bank Board (FHLB), the Federal Home Loan Mortgage Corporation (FHLMC), and the Federal National Mortgage Association (FNMA) and those insured by the Federal Housing Administration (FHA). The "prudent investor" rule shall apply for a single agency name, as U.S.

Government backing is implied rather than guaranteed. There is no percentage limitation of the Pool that can be invested in this category; although, no greater than forty percent (40%) of the Pool shall be invested with any one issuer.

C. Banker's Acceptances Maximum of 40%
Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as banker's acceptances. Banker's acceptances purchased may not exceed 180 days to maturity or forty percent of the Pool. No more than five percent of the Pool may be invested in banker's acceptances issued by any one commercial bank. Only those banker's acceptances eligible for purchase by the Federal Reserve System meet eligibility requirements for investment by the pool.

Investments in Banker's Acceptances shall be placed in instruments ranked within the top two rating categories by two of the three largest rating services. No more than five percent (5%) of the Pool may be invested in banker's acceptances issued by any one entity.

D. Time Deposits No Limit
Time Deposits are issued by depository institutions against funds deposited for a specific length of time. Time Deposits include instruments such as deposit notes.

They are distinct from Certificates of Deposit (CDs) in that interest payments on time deposits are calculated in a manner similar to that of corporate bonds whereas interest payments on CDs are calculated similar to that of money market instruments.
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City of Redondo Beach Investment Policy Fiscal Year 2024 10 The City may invest in non-negotiable time deposits collateralized in accordance with the California Government Code, in those banks and savings and loan associations that meet the requirements for investment in non-negotiable time deposits. Despite the fact that time deposits are not liquid, there is no restriction by the California Government Code on the percentage of bank/time deposits in the Pool. As such, one hundred percent of the Pool may be invested in this category.

All investments in time deposits must be issued by a financial institution whose performance has been reliable, and whose safety rating meets the standards established by the City Treasurer. All investments in time deposits must be properly collateralized in accordance with Section 53652 of the California Government Code. The City Treasurer will periodically monitor, on a discretionary yet diligent basis, the operating performance of all financial institutions holding City time deposits, to ensure compliance to collateralization requirements.

E. Negotiable Certificates of Deposit Maximum of 30%
Negotiable certificates of deposit issued by a nationally or State-Chartered Bank or a State or Federal Savings and Loan Association. Purchases of FDIC insured negotiable certificates of deposits will be insured up to the FDIC limit, which is currently $250,000. No more than $250,000 of the Pool may be invested in negotiable certificates of deposit in any one bank or savings and loan association.

Negotiable Certificates of Deposits maximum thirty percent (30%) limit is in aggregate with Certificate of Deposit Placement Service investments.

F. Commercial Paper Maximum of 25%
Commercial Paper ranked "P1" by Moody's Investor Services or "A1" or higher by Standard and Poor's, and issued by a domestic corporation having assets in excess of $500,000,000 and having an "A" or better rating on its long term debentures as provided by Moody's or Standard and Poor's. Purchases of eligible commercial paper may not exceed twenty-five percent (25%) of the Pool or have a term to maturity which exceeds 270 days. No more than five percent of the Pool may be invested in commercial paper issued by any one corporation.

G. Local Agency Investment Fund Maximum of $65 million per account The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer for the benefit of local agencies up to the $65 million maximum permitted by State law.

H. Medium-Term Notes Maximum of 30%
Medium-Term Notes are all corporate and depository institution debt securities, with a maximum remaining maturity of five years issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. The minimum quality credit rating requirements of Medium Term Notes by California Government Code is "A". City investment policy requires that at time of purchase, Medium Term Notes eligible for investment shall be rated in a rating category of "A" by S&P or Fitch, or "A2'' by Moody's Investors Services or its equivalent or better by a nationally recognized rating service. In the event that prior to maturity any Medium 393
City of Redondo Beach Investment Policy Fiscal Year 2024 11 Term Note investment experiences a credit rating downgrade to a level below the City's required credit rating, the City Treasurer will initiate a thorough review of the credit quality of the downgraded Medium Term Note to determine the prudency of selling the note prior to its maturity.

No more than thirty percent (30%) of the Pool may be invested in medium term notes. No more than five percent (5%) of the Pool may be invested in notes issued by one corporation or depository institution. In the event that the percentage of Medium Term Note investments within the Pool temporally exceeds the percentage limitation of this investment policy as dictated by California Government Code, the City Treasurer will take prudent action within 30 days to bring the percentage of the Pool invested in Medium Term Notes into compliance with the percentage limitation of this investment policy.

I. Money Market Mutual Funds Maximum of 20%

Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.

1. Prior to selection of investments in any authorized money market mutual funds, the City Treasurer will exercise due diligence in ensuring that all investments in money market mutual funds meet the investment qualification requirements of the California Government Code.

2. No more than twenty percent (20%) of the Pool may be invested in money market mutual funds. . No more than twenty percent (20%) of the Pool may be invested in any individual money market mutual fund.

J. Certificate of Deposit Placement Service Maximum of 30% AB 2011 added California Government Code Sections 53601.8 and 53635.8, which expanded Local Agencies' permissible investments to include the use of private Certificate of Deposit placement services. AB 2011 provided Local Agencies with an investment tool that minimizes monitoring and administration of their surplus cash investments while allowing smaller local banks to accept deposits that they currently are unable to because of collateralization requirements. Rather than dealing potentially with multiple banks to ensure full FDIC insurance coverage for deposits, AB 2011 provided Local Agencies with a means to work with one bank for non-negotiable Certificate of Deposit investments.

The statute limits total Pool investment in Certificates of Deposit to thirty percent (30%) of combined negotiable Certificates of Deposit as authorized under California Government Code Section 53601 (h).

K. Supranationals Maximum of 15%
United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American 394
City of Redondo Beach Investment Policy Fiscal Year 2024 12 Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated "AA" or better by at least one of the three large rating agencies, Moody's, Standard & Poor's, or Fitch, and shall not exceed fifteen percent of the Pool. No greater than five percent (5%) of the Pool shall be invested in any one issuer.

L. Authorized yet Currently Unutilized Investments
In managing the Pool, the City Treasurer does not currently utilize the following types of investments that are authorized by California Government Code: Local Agency Bonds; State Obligations of California and other States; California Local Agency Obligations; Repurchase Agreements; Reverse Repurchase Agreements; Mortgage Pass through Securities; and County Pooled Investment Funds. It is the policy of the City of Redondo Beach not to use the above listed types of investments.

M. Collateralized Bank Deposits No Limit
Deposits that are at all times secured by a valid first priority security interest in securities of all types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted.

N. Joint Powers Authority Maximum Limit 20%

The City may invest up to 20% of its portfolio in shares issued by a Joint Powers Authority, established under California Government Code Section 6509.7. These investments must meet the following:

1. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the Joint Powers Authority.

2. The Joint Powers Authority issuing the shares must retain an investment adviser meets all of the following criteria:
(a) Is registered or exempt from registration with the Securities and Exchange Commission (SEC).
(b) Has a minimum of five years of experience investing in the securities and obligations authorized in sections (a) to (r) of California Government Code Section 53601.
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City of Redondo Beach Investment Policy Fiscal Year 2024 13 (c) Manages assets under in excess of five hundred million dollars ($500,000,000).

O. Summary of Maximum Percentage Limitations of Investments, by Investment Type
Recognizing maintenance of the minimum investment liquidity requirements as addressed within section 7.B of this Investment Policy, the following summary of maximum percentage limitations by investment instrument is established for the City's Pool. The percentage limitations of authorized investment component categories within this investment policy represent percentages following the provision of sufficient Pool liquidity.

Investment Type
Maximum
Percentage
Maximum
Issuer %
Maximum
Maturity
CA Government Code
Section
U.S. Treasury Obligations No limit No limit 5 years
Cal. Gov't Code § § 53601
(b), 53651 (a)
U.S. Agency Obligations No limit 40% 5 years Cal. Gov't Code § 53601 (f) Bankers Acceptances 40% 5% 180 days Cal. Gov't Code § 53601 (g) Time Deposits No limit No limit 5 years
Cal. Gov't Code § § 53601,
53638
Negotiable Certificates of
Deposit
30% (combined
with CD
Placement
Service) $250,000 5 years Cal. Gov't Code § 53601 (i)
Commercial Paper 25% 5% 270 days Cal. Gov't Code § 53601 (h) Local Agency Investment
Fund
Per State Limit
- $65 million
per Account
Per State Limit
- $65 million
per Account N/A Cal. Gov't Code § 16429.1
Medium Term Corporate

30% 5% 5 years Cal. Gov't Code § 53601 (k)
Money Market Mutual Funds 20% 20% N/A Cal. Gov't Code § 53601 (l) Certificate of Deposit
Placement Service
30% (combined
with CDs) 30% 5 years
Cal. Gov't Code § § 53601.8
53635.8
Supranationals 15% 5% 5 years Cal. Gov't Code § 53601 (q) Collateralized Bank Deposits No Limit No Limit N/A
Cal. Gov't Code § § 53651
and 53652 (a)
Joint Powers Authority 20% 20% NA Cal. Gov't Code § 53601 (p) In the event, the percentage of investments within any of the authorized types of investments within the Pool temporally exceeds the percentage limitation of this investment policy as dictated by the California Government Code, the City Treasurer will take prudent action within 30 days to bring the percentage of the type of investment that temporally exceeds the percentage limitation into compliance with the percentage limitation of this investment policy. 396
City of Redondo Beach Investment Policy Fiscal Year 2024 14 P. Legislative Changes
Any State of California legislative action, that further restricts allowable maturities, investment type or percentage allocations, will be incorporated into the Investment Policy and supersede any and all previous applicable language.

16. Unauthorized Investments
Ineligible Investments are those that are described herein, including but not limited to common stocks, long term (over five years to maturity) notes and bonds, derivative based instruments, inverse floaters, futures and options, interest-only strips that are derived from a pool of mortgages, securities with high price volatility or limited marketability, and any maturity that could result in zero interest accrual if held to maturity, are prohibited from use in the Pool.

17. Portfolio Management Activity
The investment program shall seek to augment returns consistent with the intent of this policy, identified risk limitations and prudent investment principals. These objectives will be achieved by use of the following strategies:

A. Active Portfolio Management--Through active fund and cash flow management taking advantage of current economic and interest rate trends, the pool yield may be enhanced with limited and measurable increases in risk by extending the weighted maturity of the total pool.

B. Portfolio Maturity Management--When structuring the maturity composition of the pool, the City shall evaluate current and expected interest rate yields and necessary cash flow requirements. It is recognized that in normal market conditions longer maturities produce higher yields. However, the securities with longer maturities also experience greater price fluctuations when the level of interest rates change.

C. Security Swaps--The City may take advantage of security swap opportunities to improve the overall pool yield. A swap which improves the pool yield may be selected even if the transactions result in an accounting loss. Documentation for swaps will be included in the City's permanent investment file documents.

D. Competitive Bidding-- To ensure that the purchase of City investments is obtained in the most cost effective and efficient manner, the City Treasurer will encourage competitive bidding for City investment transactions. On an annual basis, the City Treasurer will accept applications from qualified members of the investment broker-dealer community interested in bidding on City investment instruments. The City Treasurer shall establish, on an annual basis, a limited array of qualified broker-dealers to serve the City's investment opportunities. Selection criteria for inclusion on the City's annual list of broker-dealers will be based upon merit, expertise, and performance.

Competitive bidding on individual investment transactions is required on all transactions except those pertaining to "new issue" securities. A new issue security denotes a security that is originally brought to market. Investments in "non-new 397
City of Redondo Beach Investment Policy Fiscal Year 2024 15 issue" securities, and the sale of all securities, will require the competitive bid of at least two bidders from the approved list of broker dealers.

Competitive bidding for security swaps is also suggested, however, it is understood that certain time constraints and broker inventory limitations exist which would not accommodate the competitive bidding process. If a time or inventory constraining condition exists, the pricing of the swap should be verified to current market conditions and documented for auditing purposes.

Details of investment transactions involving competitive bidding will be included in the City Treasurer's quarterly report provided to the City Council and the Budget and Finance Commission.

To ensure the accurate and timely processing, clearance, and settlement of all City Investments, the City Treasurer shall maintain an Investment Procedures Manual.

This manual provides current details with respect to operational procedures associated with the placement and clearance of all City Investments. To ensure the accuracy and timeliness of this Investment Procedures Manual, the manual will be reviewed on an annual basis by the City's Independent Auditors.

If the City utilizes an Investment Advisor, the Investment Advisor shall act on a non-discretionary basis as set forth below.

Upon written approval from the City Treasurer, the Investment Advisor shall execute trades on behalf of the City by obtaining at least three bids or offers. However, multiple offers may not be available if the security is a new issue or offered by fewer than three broker/dealers. In that event, the Investment Advisor shall document the bids and offers received, and provide yield information to the City Treasurer for comparable securities.

All investment transactions executed by the Investment Advisor shall comply with Sections 7 (Objectives) and 15 (Authorized Investments) of this Policy. The Investment Advisor shall also comply with applicable laws, rules, regulations, and guidelines, including but not limited to, the Securities and Exchange Commission, and guidelines stipulated in its Securities and Exchange Commission Form ADV and ADV Part 2A Brochures, which shall be provided to the City annually.

18. Collateralization
Investments in time certificates of deposits shall be fully insured up to $250,000 by the Federal Deposit Insurance Corporation or the Federal Savings & Loan Insurance Corporation, as appropriate. Investments in time certificates of deposit in excess of $250,000 shall be properly collateralized. Section 53652 of the California Government Code requires that the depository pledge securities with a market value of at least ten percent (10%) in excess of the City's deposit as collateral in government securities, and fifty percent (50%) in excess of the deposit as collateral in mortgage pools. Section 53649 of the California Government Code specifies that the City Treasurer is responsible for entering into deposit contracts with each depository. Investments held with Third Parties holding collateral for the investment shall be properly collateralized in accordance with collateralization requirements of the California Government Code. 398
City of Redondo Beach Investment Policy Fiscal Year 2024 16

19. Registered Investment Advisor Service
Federal and State Regulation: Investment Advisors with assets under management of $25 million to $100 million or more are registered by the Securities and Exchange Commission (SEC), under the Investment Advisers Act of 1940 (Act). The Act requires investment advisors to file an initial application, known as the "Uniform Application for Investment Advisor Registration" or "Form ADV," with the SEC. They also must file an annual updating amendment, as well as an amendment any time a significant change has occurred at the firm. The

SEC requires investment advisors to maintain extensive records, and has the authority to sanction advisors who break the law or rules established under the Act. The SEC generally conducts routine inspections of advisors' records about once every five years, and may initiate an inspection on the basis of an investor complaint. Advisors registered with the SEC also must submit a simplified filing with securities authorities in the states in which they do business. The City shall only deal with SEC registered investment advisors with $1 billion or more of funds under management.

Investment advisors with assets under management of less than $25 million are regulated by the states in which they do business. In California, such investment advisors register with the California Department of Corporations. It is important to note that the regulatory authorities do not review the credentials or qualifications of advisors, nor do they "approve" or endorse any advisory firm or individual. The role of the regulatory authorities is to enforce the securities laws and not to judge the qualifications of individual advisors.

CDIAC advises that in 1996, the California Attorney General published Opinion 95-807 which addresses utilization of outside investment managers. The opinion states that a City Treasurer can have a contract with an external investment manager. Since there is no specific reference to a section of the California Government Code regarding these services, reference to Opinion 95-807 is sufficient.

20. Authorized Financial Dealers And Institutions
The City shall transact business only with nationally or state chartered banks, federal or state savings and loan institutions, and registered primary investment securities dealers.

The purchase by the City of any investment other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a brokerdealer, as defined in Section 25004 of the California Corporations Code, who is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a Federal or State Association (as defined by Section 5102 of the California Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank.

To continue to maintain broker/dealers with quality services, expertise, and credit worthiness, the City Treasurer may, on a selective basis, expand the approved list of primary dealers to include "qualified regional" dealers.

A "qualified regional" dealer must demonstrate the following requirements:
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City of Redondo Beach Investment Policy Fiscal Year 2024 17 æ The "qualified regional" firm must be able to demonstrate their services and/or expertise is not currently being provided by a primary broker/dealer and will specifically and immediately benefit the City.
æ In addition to qualifying under the Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule), the regional dealer shall not self-clear securities.

The clearinghouse through which all transactions are cleared and settled has a minimum investment grade rating of A or better by S&P or Moody. æ The representatives chosen to work with the City Treasurer are institutional brokers familiar with and experienced in the specific needs of California public funds. "Familiar" implies an institutional broker who spends the majority of their time and effort working with public funds.

All institutions which the City Treasurer wishes to do business shall be investigated to determine if they are adequately capitalized, have pending legal action against the firm or the individual broker, are registered with FINRA, make markets in the securities appropriate to the City's needs, and agree to abide by the conditions set forth in the City of Redondo Beach's Investment Policy.

The City Treasurer shall annually send a copy of the current Investment Policy to all broker/dealers approved to do business with the City. Confirmation is required of broker dealers of receipt of this policy and shall be considered evidence that the dealer understands the City's investment policies and intends to sell the City only appropriate investments authorized by this investment policy.

To further ensure that investments are purchased only through well established, financially sound institutions, the City Treasurer shall maintain a list of financial institutions and brokers approved for the conduct of investment transactions. All financing institutions and brokers who desire to become qualified bidders for investment transactions will be given a copy of the City's Investment Policy, and in turn must supply the City Treasurer with the following:
• Current audited financial statements (within 120 days of Fiscal Year End). • Depository contracts, as appropriate.
• A copy of the latest FDIC call report or the latest FHLB report, as appropriate • Proof that commercial banks, savings banks, or savings and loan associations are state or federally chartered.
• Proof that brokerage firms are members in good standing on a national securities exchange.
• Proof of State registration.
• Trading resolution.
• Completed Broker/Dealer Questionnaire.
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City of Redondo Beach Investment Policy Fiscal Year 2024 18 • Certification of having read the City's investment policy and depository contracts.

Commercial banks, savings banks, and savings and loan associations must maintain a minimum net worth to asset ratio of three percent (3%) (total regulatory net worth divided by total assets), and must have had positive net earnings for the last reporting period.

A list of qualified brokers from which the City may purchase investments will be submitted annually by the City Treasurer for approval by the City Council as part of the annual review of investment strategy.

See EXHIBIT A regarding broker/dealers utilized by the investment advisor.

21. Monthly and Quarterly Reporting
The City Treasurer shall render a monthly report to the City Council showing the type of investment, issuing institution, date of maturity, amount of deposit, current market value for all securities, rate of interest, percentage of the Pool representing each investment category, transactions for the period, the ability of the City to meet the expenditure requirements for the next six months or provide and explanation why requirements may not be met, comments with respect to the current fixed income marketplace and current economic conditions impacting the value of fixed income investments, and such data as may be required by the City Council. The City Treasurer shall make quarterly presentations to the Budget and Finance Commission and to the City Council analyzing the Pool and investment market trends.

The securities held by the City must be in compliance with Section 15 Authorized Investments at the time of purchase. Because some securities may not comply with Section 15 Authorized Investments subsequent to the date of purchase, the Treasurer shall at least quarterly review the portfolio to identify those securities that do not comply.

The Treasurer shall report to the Budget and Finance Commission, should one exist, major and critical incidences of noncompliance identified through the review of the Pool.

22. Ongoing Training and Education
The City strives for professionalism and accountability in the investment of its funds. In order to assure the highest possible professional standards, the City may provide opportunities and funding for the personnel involved in the investment function to complete continuing education programs or other training in cash and investment management sufficient to maintain their skills and remain up-to-date on best practices and new regulations.

23. Annual Policy Review and Adoption
This Investment Policy shall be reviewed annually by both the Budget and Finance Commission and the City Council to ensure its consistency with the overall objectives of preservation of Principal, Liquidity, and Yield, its relevance to current financial and economic trends, and ability to meet the cash flow operational needs of the City. As part of the City Council's annual review of the City's Statement of Investment Policy, and in accordance with the requirements of the California Government Code, the City Council will adopt the City's Statement of Investment Policy, inclusive of amendments, on an annual basis. To ensure that the Statement of Investment Policy meets continued high 401
City of Redondo Beach Investment Policy Fiscal Year 2024 19 standards of legal compliance and reporting excellence, the City Treasurer will submit the Statement of Investment Policy to the California Municipal Treasurer’s Association or the Association of Public Treasurers of the United States and Canada for review and recertification no sooner than every three years, nor later than every five years. 402
City of Redondo Beach Investment Policy Fiscal Year 2024 20

EXHIBIT A

REGISTERED INVESTMENT ADVISOR AND QUALIFIED BROKERS FROM WHICH

THE CITY MAY PURCHASE INVESTMENTS
Registered Investment Advisor: Rick Phillips, Meeder Public Funds, Inc.

Qualified Brokers: Meeder Public Funds, Inc. maintains an approved list of qualified Broker Dealers, which will be used in transacting business with the City of Redondo Beach.

City Investment Policy Annual Review: November 19, 2024 Budget and Finance Commission Review: November 14, 2024 City Investment Policy Annual Adoption: November 19, 2024 403
City of Redondo Beach Investment Policy Fiscal Year 2024 21

EXHIBIT B

GLOSSARY OF TERMS
The following is a glossary of key terms which appear in the Government Investment Officers Association’s Model Investment Policy. (Note: The entity’s Policy should include relevant terms, not all terms may need to be included)
144A: A Section of the Securities and Exchange Commission (SEC) which restricts trades of privately placed securities so that these investments can be traded among qualified institutional buyers.

Accretion: The increase in the value of a discounted instrument as time passes and as the maturity date gets closer. The value of the instrument will accrete (grow) at the interest rate implied by the discounted issuance price, the value at maturity, and the term to maturity.

Accrued Interest: The interest that has accumulated but has not yet been paid from the most recent interest payment date or issue date to a certain date.

Agency: A debt security issued by an agency or instrumentality of the United States. Agencies are backed by each particular agency or instrumentality of the United States with a market perception that there is an implicit government guarantee.

Amortized Cost: The original cost of the principal adjusted for the periodic reduction of any discount or
premium from the purchase date until a specific date (also called “Book Value”).

Amortization: The systematic reduction of the amount owed on a debt issue through periodic payments of principal. The decrease in the value of a premium instrument as time passes and as the maturity date gets closer. The value of the instrument will amortize (decrease) at the interest rate implied by the discounted issuance price, the value at maturity, and the term to maturity.

Asset-Backed Security: A security backed by notes or receivables against assets other than real estate. Examples are autos, credit cards, and equipment.

Ask/Offer: The price at which securities are offered.

Bankers’ Acceptances: A short-term credit instrument created by a non-financial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market on the basis of the credit quality of the guaranteeing banks.

Basis Point: A unit of measurement used in the valuation of fixed-income securities equal to 1/100 of 1 percent of yield. As an example, the difference between a security yielding 2.00% and

2.25% is 25 basis points.

Benchmark: A comparative base for measuring the performance or risk tolerance of an investment portfolio. A benchmark should represent the persistent and prominent characteristics of a portfolio, taking into account metrics such as duration, investment type, and asset allocation.

Bid: The indicated price at which a buyer is willing to purchase a security or commodity. 404
City of Redondo Beach Investment Policy Fiscal Year 2024 22 Bond: A long-term debt instrument of a government or corporation promising payment of the original
investment plus interest by a specified future date.

Book or Effective Return: The sum of all investment income plus realized gains and losses.

Book Value: The value at which a security is carried on the inventory lists or other financial records of an investor. The book value may differ significantly from the security's current value in the market.

Broker: A broker facilitates security trades on behalf of investors (see Dealer).

Bullet: A colloquial term for a bond that cannot be redeemed, or called, prior to maturity.

Callable Bond: A bond issue in which all or part of its outstanding principal amount may be redeemed before maturity by the issuer under specified conditions.

Call Price: The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder for loss of income and ownership.

Call Risk: The risk to a bondholder that a bond may be redeemed prior to maturity.

Cash Sale/Purchase: A transaction which calls for delivery and payment of securities on the same day that the transaction is initiated.

Certificate of Deposit: A debt instrument issued by financial institutions that will pay interest, periodically or at maturity, and principal when it reaches maturity. Maturities range from a few weeks to several years.

Collateralization: A process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security.

Collateralization: Process by which a borrower pledges securities, property or other deposits for the
purpose of securing the repayment of a loan and/or security.

Collateralized (Guaranteed) Investment Contracts (CIC): A CIC is a fixed rate, fixed maturity contract similar to a bond that is typically collateralized by an insurance company. However, unlike a bond, a CIC is always carried or valued at par. CICs are primarily utilized for the investment of bond proceeds.

Commercial Paper: An unsecured short-term promissory note issued by corporations, with maturities typically ranging from 1 to 270 days, and usually transacts at a discount with no coupon payments.

Comprehensive Annual Financial Report (CAFR): The CAFR is the entity’s official annual financial report. It consists of three major sections: introductory, financial, and statistical. The introductory section furnishes general information on the entity’s structure, services, and environment. The financial section contains all basic financial statements and required supplementary information, as well as information on all individual funds and discretely presented 405
City of Redondo Beach Investment Policy Fiscal Year 2024 23 component units not reported separately in the basic financial statements. The reported information is in conformity with accounting principles generally accepted in the United States of America (GAAP). The financial section may also include supplementary information not required by GAAP. The statistical section provides trend data and nonfinancial data useful in interpreting the basic financial statements and is especially important for evaluating economic condition.

Convexity: A measure of how much a fixed-income instrument’s duration changes when interest rates change. A high convexity indicates greater sensitivity of a bond's price to interest rate changes.

Corporate Security: A debt obligation issued by a corporation.

Coupon or Coupon Rate: The stated interest rate on a debt security that an issuer promises to pay. The origin of the term "coupon" is that bonds were historically issued in the form of bearer certificates. Physical possession of the certificate was proof of ownership. Several coupons, one for each scheduled interest payment, were printed on the certificate.

Credit Quality: The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer's ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by nationally recognized rating agencies.

Credit Risk: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

Current Yield (Current Return): A yield calculation determined by dividing the annual interest received on a security by the current market price of that security.

CUSIP: A unique identifier for a security developed by the Committee on Uniform Security Identification
Procedures (CUSIP). The identifier is a nine-digit alphanumeric character. The first six characters identify the issuer, the following two identify the issue, and the final character is a check digit.

CUSIPs are correlated to an alphabetical listing of the issuer’s name.

Day Count Convention: A day-count convention is the system used to calculate the amount of accrued interest or the present value when the next coupon payment is less than a full coupon period away. Each bond market and financial instrument has its own day-count convention, which varies depending on the type of instrument, whether the interest rate is fixed or floating, and the country of issuance. Among the most common conventions are 30/360 or 365, actual/360 or 365, and actual/actual.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for their own account. (see Broker).

Debenture: A bond secured only by the general credit of the issuer and not by physical assets or collateral of the company.

Delivery (Settlement): There are typically four types of delivery or settlement of securities: cash, which is the same day as the transaction occurred; regular, which trade day plus one; corporate, 406
City of Redondo Beach Investment Policy Fiscal Year 2024 24 which is trade day plus two; and forward, which typically occurs three to thirty days after the trade date.

Delivery Versus Payment (DVP): A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian.

Derivative Security: Financial instrument created from, or whose value depends upon, one or more underlying assets or indexes of asset values.

Discount: The amount by which the par value of a security exceeds the price paid for the security.

Discount Rate: The interest rate member banks pay the Federal Reserve when the banks use securities as collateral.

Diversification: A process of investing assets among a range of security types by sector, maturity, and quality rating.

Duration: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates. There are three primary types of duration: Macaulay Duration, Modified Duration, and Effective Duration.

Macaulay Duration was developed in 1938 by Frederic Macaulay, this form of duration measures the number of years required to recover the true cost of a bond, considering the present value of all coupon and principal payments received in the future. Thus, it is the only type of duration quoted in “years.” Interest rates are assumed to be continuously compounded.

Modified Duration expands or modifies Macaulay duration to measure the responsiveness of a bond’s price to interest rate changes. It is defined as the percentage change in price for a 100 basis point change in interest rates. The formula assumes that the cash flows of the bond do not change as interest rates change (which is not the case for most callable bonds).

Effective Duration (sometimes called option-adjusted duration) further refines the modified duration calculation and is particularly useful when a portfolio contains callable securities. Effective duration requires the use of a complex model for pricing bonds that adjusts the price of the bond to reflect changes in the value of the bond’s “embedded options” (e.g., call options or a sinking fund schedule) based on the probability that the option will be exercised. Effective duration incorporates a bond’s yield, coupon, final maturity and call features into one number that indicates how price-sensitive a bond or portfolio is to changes in interest rates.

Earnings Apportionment: The distribution of investment income to investment pool participants.

Environmental, Social, and Governance (ESG): (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments.

Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the 407
City of Redondo Beach Investment Policy Fiscal Year 2024 25 communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

Fair Value: The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

Federal Agricultural Mortgage Corporation (FAMC/Farmer Mac): Farmer Mac is a stockholder-owned, federally chartered corporation with the mission of providing a secondary market for a variety of loans made to borrowers in rural America. Farmer Mac was established under federal legislation in 1988. Farmer Mac is an instrumentality of the United States and government-sponsored enterprise ("GSE") by virtue of the status conferred by its charter. s.

Farmer Mac is part of the Farm Credit System but is separate from the Federal Farm Credit Banks and Funding Corporation. It is based primarily in Washington, D.C, and also has offices in Iowa, Idaho, and California.

Federal Deposit Insurance Corporation (FDIC): The FDIC preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails. An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure. The FDIC receives no Congressional appropriations - it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts - deposits in virtually every bank and thrift in the country.

Federal Funds (Fed Funds): Funds placed in Federal Reserve banks by depository institutions in excess of current reserve requirements. These depository institutions may lend fed funds to each other overnight or on a longer basis. They may also transfer funds among each other on a same-day basis through the Federal Reserve banking system. Fed funds are considered to be immediately available funds.

Federal Funds Rate: Interest rate charged by one institution lending federal funds to the other.

Federal Farm Credit Bank (FFCB/Farm Credit): The Federal Farm Credit Banks Funding Corporation is responsible for issuing and marketing debt securities on behalf of the four Banks of the Farm Credit System: AgFirst FCB, Agribank FCB, FCB of Texas. And CoBank, ACB. These four Banks (located in South Carolina, Minnesota, Texas, and Colorado) are a leading provider of loans, leases and services to rural communities and U.S. agriculture. The Farm Credit System is a government-sponsored enterprise, created in 1916 and dedicated to assuring a steady source of financing to qualified borrowers. The Federal Farm Credit Banks Funding Corporation is based in Jersey City, New Jersey.

Federal Home Loan Banks (FHLB/Home Loan): The Federal Home Loan Banks are 11 U.S. government-sponsored banks that provide reliable liquidity to member financial institutions to support housing finance and community investment. With their members, the FHLB represents the largest collective source of home mortgage and community credit in the United States. FHLB was created by Congress in 1932 by the Federal Home Loan Bank Act and is located in Reston, Virginia.
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City of Redondo Beach Investment Policy Fiscal Year 2024 26

Federal Home Loan Mortgage Corporation (FHLMC/Freddie Mac): Freddie Mac was created by Congress in 1970 to expand the secondary market for mortgages in the US. Along with the Federal National Mortgage Association, buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases. Freddie Mac, is headquartered in McLean, Virginia.

Federal National Mortgage Association (FNMA/Fannie Mae): Fannie Mae was created Congress in 1938 to provide supplemental liquidity to the mortgage market, similar to the FHLMC.

Fannie Mae, is headquartered in Washington, D.C.

Federal Open Market Committee (FOMC): The FOMC is the branch of the Federal Reserve Board that determines the direction of monetary policy. The FOMC meets several times a year to discuss whether to maintain or change current policy.

Federal Reserve Board (FRB): The governing body of the Federal Reserve System (12 regional Federal banks monitoring the commercial and savings banks in their regions). The board establishes policies on such key matters as reserve requirements and other regulations, sets the discount rate, and tightens or loosens the availability of credit in the economy.

Federal Reserve System: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 6,000 commercial banks that are members of the system. These member banks hold stock in the Federal Reserve Banks and earn dividends.

Financial Industry Regulatory Authority (FINRA): FINRA is a private corporation, authorized by Congress, that acts as a self-regulatory organization. FINRA is the successor to the National Association of Securities Dealers, Inc. and the member regulation, enforcement, and arbitration operations of the New York Stock Exchange. FINRA also provides BrokerCheck, which is a service to obtain information regarding brokers, brokerage firms, and investment advisors.

Fitch: A credit rating agency that as one of its services, analyzes and rates securities. Fitch Ratings is one of the “Big Three” credit rating agencies, along with Moody’s and S&P.

Floating Rate Securities: A bond whose interest rate is adjusted according to the interest rates of other financial instruments. These instruments provide protection against rising interest rates, but pay lower yields than fixed rate notes.

Futures: Futures are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. Here, the buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.

Generally Accepted Accounting Principles (GAAP): GAAP refer to a common set of accepted accounting principles, standards, and procedures that companies and their accountants must follow when they compile their financial statements. GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information. GAAP improves the clarity of the communication of financial information. 409
City of Redondo Beach Investment Policy Fiscal Year 2024 27 Governmental Account Standards Board (GASB): GASB is a non-profit entity that was organized in 1984 by the Financial Accounting Foundation (FAF) to establish standards of financial accounting and reporting for state and local governmental entities. Its standards guide the preparation of external financial reports of those entities.

Government National Mortgage Association (GNMA/Ginnie Mae): Ginnie Mae is a U.S. government corporation that guarantees the timely payment of principal and interest on mortgagebacked securities issued by approved GNMA lenders. That assurance allows the mortgage lenders to obtain a better price for these offerings in the capital markets. Those improved proceeds, in turn, allow the lenders to make additional mortgage loans, and at lower costs to finance. GNMA was created by Congress in 1968 and is headquartered in Washington D.C.

Government Securities: An obligation backed by the full faith and credit of the U.S. government.

These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds." Government Sponsored Enterprises (GSEs): Federally-chartered agency or instrumentality of the United States Government
IDC Ranking: IDC Financial Publishing, Inc. compiles financial data on all banks, thrifts, and credit unions reporting to the federal government, and publishes a ranking based on 24 key indicators.

Interest Rate: See "Coupon Rate."
Interest Rate Risk: The risk associated with declines or rises in interest rates, which cause an investment in a fixed-income security to increase or decrease in value. Duration is a measure of interest rate risk.

Interest Rate Swap: An interest rate swap is a forward contract in which one stream of future interest payments is exchanged for another based on a specified principal amount. Interest rate swaps usually involve the exchange of a fixed interest rate for a floating rate, or vice versa, to reduce or increase exposure to fluctuations in interest rates or to obtain a marginally lower interest rate than would have been possible without the swap.

Inter-American Development Bank (IADB): An international financial institution that supports Latin American and Caribbean economic development, social development and regional integration by lending to governments and government agencies, including State corporations.

The IADB is headquartered in Washington, D.C. IADB is a supranational organization and was established in 1959.

International Bank for Reconstruction and Development (IBRD): An international financial institution that offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group, and is headquartered in Washington, D.C. IBRD is a supranational organization and was established in 1944.

International Finance Corporation (IFC): An international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C. IFC is a supranational organization and was established in 1956. 410
City of Redondo Beach Investment Policy Fiscal Year 2024 28 Inverse Floater: An inverse floater is a bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes.

Inverted Yield Curve: A chart formation that illustrates long-term securities having lower yields than short-term securities. This configuration usually occurs during periods of (or anticipation of) high inflation coupled with low levels of confidence in the economy and a restrictive monetary policy.

Investment Company Act of 1940: Federal legislation, which sets the standards by which investment companies, such as mutual funds, are regulated in the areas of advertising, promotion, performance reporting requirements, and securities valuations.

Investment Policy: A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities.

Investment-Grade Obligations: Obligations that are rated BBB or higher by a rating agency Joint Powers Authority: A Joint Powers Authority (JPA) is a legal entity formed by two or more public agencies to work together on a specific project or purpose.

Leverage: The use of financial leverage to control a greater amount of assets (by borrowing money) will cause the returns on the owner's cash investment to be amplified.

Liquidity: The amount of a portfolio or an asset that can be converted easily and quickly into cash.

Local Government Investment Pool (LGIP): An investment by local governments in which their money is pooled as a method for managing local funds.

Make Whole Call: A make whole call provision is a type of call provision on a bond allowing the issuer to pay off remaining debt early. The issuer typically has to make a lump sum payment to the investor derived from a formula based on the net present value (NPV) of future coupon payments that will not be paid incrementally because of the call combined with the principal payment the investor would have received at maturity.

Mark-to-Market: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

Market Risk: The risk that the value of a security will rise or decline as a result of changes in market conditions.

Market Value: Current market price of a security.

Master Repurchase Agreement (MRA): A written contract covering all future transactions between the parties to repurchase—reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.

SIFMA’s MRA is the industry standard agreement.
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City of Redondo Beach Investment Policy Fiscal Year 2024 29 Maturity: The date on which payment of a financial obligation is due. The final stated maturity is the date on which the issuer must retire a bond and pay the face value to the bondholder. See "Weighted Average Maturity”.

Medium Term Notes: Debt obligations of banks, corporations, and insurance companies. They are issued at a specific rate of return for a specific period of time.

Monetary Policy: The way in which the money supply is managed by the Federal Reserve Board.

The FRB manipulates the money supply either through open market transactions, member bank reserve requirements, or through changing the Fed Funds Rate or the Discount Rate.

Money Market: Typically refers to short-term debt instruments (bills, commercial paper, discount notes, etc.).

Money Market Fund: Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos, and federal funds).

Moody’s Investors Service: A company that as one of its services, analyzes and rates securities (similar to Fitch and Standard and Poor’s).

Mortgage-Backed Security: A security that is backed by a pool of mortgages. Generally, the security is issued or guaranteed by the United States or its agencies or instrumentalities, but also may be issued by financial institutions such as banks.

Municipal Bond: A municipal bond is a debt security issued by a local government, such as county, state, city, special improvement district, to finance its capital expenditures, including the construction of highways, bridges or schools. Municipal bonds can issue taxable or tax-exempt from federal, state, and local taxes.

Mutual Fund: A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.

Mutual funds have advantages and disadvantages compared to direct investing in individual securities.

Nationally Recognized Statistical Rating Organization (NRSRO): A credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. The most recognized NRSROs are Fitch, Moody’s, and Standard and Poor’s.

National Association of Securities Dealers (NASD): A self-regulatory organization of brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.

Nominal Yield: The stated rate of interest that a bond pays its current owner, based on par value of the security. It is also known as the "coupon," "coupon rate," or "interest rate." Offer: An indicated price at which market participants are willing to sell a security or commodity.

Also referred to as the "Ask price."
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City of Redondo Beach Investment Policy Fiscal Year 2024 30 Open Market Operations: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

Option Adjusted Spread (OAS): Option-adjusted spread is the yield spread which has to be added to a benchmark yield curve to discount a security's payments to match its market price, using a dynamic pricing model that accounts for embedded options. OAS is hence modeldependent.

Overnight Indexed Swap (OIS): OIS is an interest rate swap where the periodic floating payment is generally based on a return calculated from a daily compound interest investment. ... The LIBOR–OIS spread is the difference between LIBOR and the OIS rates.

Par: Face value or principal value of a bond, typically $1,000 per bond.

Pass-Thorough Securities: A debt instrument that reflects an interest in a mortgage pool, consumer
receivables pool and equipment lease-backed pool that serves as collateral for a bond.

Portfolio: Collection of securities held by an investor.

Positive (Normal) Yield Curve - A chart formation that illustrates short-term securities having lower yields than long-term securities.

Premium: The amount by which the price paid for a security exceeds the security's par value.

Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers and banks.

Prime Rate - A preferred interest rate charged by commercial banks to their most creditworthy customers. Many interest rates are keyed to this rate.

Principal - The face value or par value of a debt instrument. Also, may refer to the amount of capital invested in a given security.

Private Placements: Securities that do not have to be registered with the Securities and Exchange Commission because they are offered to a limited number of sophisticated investors.

Prospectus - A legal document that must be provided to any prospective purchaser of a new securities offering registered with the SEC. This can include information on the issuer, the issuer's business, the proposed use of proceeds, the experience of the issuer's management, and certain certified financial statements.

Range Notes: Notes which pay interest only if the underlying index upon which it is benchmarked, falls
within a certain range.
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City of Redondo Beach Investment Policy Fiscal Year 2024 31 Real Adjustment: When a specific metric or economic indicator is adjusted for inflation.

Regional Dealer: Non-Primary broker-dealers and banks, which transact in the fixed-income markets.

Regular Settlement: Securities settlement that calls for delivery and payment on the next business day following the trade day for government securities and the second business day following the trade date for corporate and municipal securities. Money market funds and money market instruments are settled on a same day basis.

Reinvestment Risk: The risk that a fixed-income investor will be unable to reinvest income proceeds from a security holding at the same rate of return currently generated by that holding.

Repurchase Agreement (Repo or RP): An agreement of one party to sell securities at a specified price to a second party and a simultaneous agreement of the first party to repurchase the securities at a specified price or at a specified later date.

Reverse Repurchase Agreement (Reverse Repo): An agreement of one party to purchase securities at a specified price from a second party and a simultaneous agreement by the first party to resell the securities at a specified price to the second party on demand or at a specified date.

Rule 2a-7 of the Investment Company Act: Applies to all money market mutual funds and mandates such funds to maintain certain standards, including a 13- month maturity limit and a 90-day average maturity on investments, to help maintain a constant net asset value of one dollar ($1.00).

Safekeeping: The holding of assets (e.g., securities) by a financial institution.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Securities and Exchange Commission (SEC): The government agency that regulates and supervises the securities industry. The commission administers federal law, formulates and enforces rules to protect against malpractice, and seeks to ensure that companies provide the fullest possible disclosure to investors. All of the national exchanges and virtually all institutions in the securities industry fall under its jurisdiction.

SEC RULE l5(C))3-1: See Uniform Net Capital Rule.

Securities Lending: Securities lending is when entities transfer or “loan” their securities to broker-dealers in return for cash collateral and simultaneously agree to return the collateral in exchange for the same securities in the future. Entities then invest the cash received as collateral in allowable investments, such as commercial paper, at a rate that exceeds the “rebate” or loan rate paid to the broker-dealer for the cash collateral. These transactions are structured to result in earning an incremental income on a portion of the investment portfolio. The amount of securities loaned from the portfolio and the income generated is dependent upon market conditions.

Security Swap: Selling one asset and buying another.
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City of Redondo Beach Investment Policy Fiscal Year 2024 32 Securities Industry and Financial Markets Association (SIFMA): SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets.

SIFMA was formed in 2006, from the merger of the Bond Market Association and the Securities Industry Association. SIFMA also provides a recommended holiday schedule for the U.S. financial markets.

Standard and Poor’s (S&P): A company that as one of its services, analyzes and rates securities (similar to Moody’s Investors Service).

Standard of Prudence: An investment standard outlining the fiduciary responsibilities of public funds investors relating to investment practices. Generally, the Prudent Person and Prudent Investor are used, with the Prudent Investor being more relevant to state and local governments.

Stated Final Maturity: The date when the final principal amount of a note, draft, or other debt instrument becomes due and is repaid to the investor.

Straight Line Amortization: A common method of calculating accretion or amortization of a discount or premium security to par or 100 from the purchase date to the maturity date. It is calculated by dividing the discount/premium amount by the number of days to maturity, without regard to a security’s day count convention.

Structured Notes: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

Structured Overnight Financing Rate (SOFR): SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. The SOFR includes all trades in the Broad General Collateral Rate plus bilateral Treasury repurchase agreement (repo) transactions cleared through the Delivery-versus-Payment (DVP) service offered by the Fixed Income Clearing Corporation (FICC), which is filtered to remove a portion of transactions considered “specials”.

The SOFR is calculated as a volume-weighted median of transaction-level tri-party repo data collected from the Bank of New York Mellon as well as GCF Repo transaction data and data on bilateral Treasury repo transactions cleared through FICC's DVP service, which are obtained from DTCC Solutions LLC, an affiliate of the Depository Trust & Clearing Corporation. Each business day, the New York Fed publishes the SOFR on the New York Fed website at approximately 8:00 a.m.

Supranational: A supranational entity is formed by two or more central governments with the purpose of promoting economic development for the member countries. Supranational institutions finance their activities by issuing debt, such as supranational bonds. The three U.S. based supranationals are International Bank for Reconstruction and Development, the International Finance Corporation, and the Inter-American Development Bank.

Total Return: The sum of all investment income plus realized and unrealized gain and losses.

Trade Reporting and Compliance Engine (TRACE): TRACE is the FINRA-developed vehicle that facilitates the mandatory reporting of over-the-counter secondary market transactions in 415
City of Redondo Beach Investment Policy Fiscal Year 2024 33 eligible fixed income securities. All broker-dealers who are FINRA member firms have an obligation to report transactions in corporate bonds to TRACE under an SEC-approved set of rules.

Treasury Bills: Short-term U.S. government non-interest bearing debt securities with maturities of no longer than one year and issued in minimum denominations of $10,000. Auctions of three- and six-month bills are weekly, while auctions of one-year bills are monthly. The yields on these bills are monitored closely in the money markets for signs of interest rate trends.

Treasury Notes: Intermediate U.S. government debt securities with maturities of one to 10 years and issued in denominations ranging from $1,000 to $1 million or more.

Treasury Bonds: Long-term U.S. government debt securities with maturities of ten years or longer and issued in minimum denominations of $1,000. Currently, the longest outstanding maturity for such securities is 30 years.

Uniform Net Capital Rule: SEC Rule 15C3-1 outlining capital requirements for broker/dealers who must maintain a maximum ratio of indebtedness to liquid capital of 15 to 1. Indebtedness covers all money owed to a firm, including margin loans, and commitments to purchase securities (one reason new issues are spread among members of underwriting syndicates). Liquid capital includes cash and assets easily converted to cash.

Volatility: A degree of fluctuation in the price and valuation of securities.

Volatility Risk Rating: A rating system to clearly indicate the level of volatility and other non-credit risks associated with securities and certain bond funds. The ratings for bond funds range from those that have extremely low sensitivity to changing market conditions and offer the greatest stability of the returns to those that are highly sensitive with currently identifiable market volatility risk.

Warrant: In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date. Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities. In accounting, a warrant sometimes similar to a check or an instrument to present for payment.

Weighted Average Life (WAL): The average number of years that each dollar of unpaid principal due on loan, asset-backed security, or mortgage-backed security remains outstanding. WAL delineates how many years it will take to pay half of the outstanding principal.

Weighted Average Maturity (WAM): The average maturity of all the securities that comprise a portfolio, weighted by the individual securities.

When Issued: A transaction that is made conditionally because a security has been authorized but not yet issued. Treasury securities, stock splits, and new issues of stocks and bonds are traded on a when-issued basis.

World Bank: The World Bank is an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects. It comprises two institutions: the International Bank for Reconstruction and Development, and the International Development Association.
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City of Redondo Beach Investment Policy Fiscal Year 2024 34 Yield: The current rate of return on an investment security generally expressed as a percentage of the security's current price.

Yield-to-Call (YTC): The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date.

Yield Curve: A graphic representation that depicts the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity. A normal yield curve may be alternatively referred to as a positive yield curve.

Yield-to-Maturity (YTM): The rate of return yielded by a debt security held to maturity when both interest payments and the investor's potential capital gain or loss are included in the calculation of return.

Yield-to-Worst (YTW): The YTW is the lowest potential yield that can be received on a bond without the issuer actually defaulting. The YTW is calculated by making worst-case scenario assumptions on the issue by calculating the return that would be received if the issuer uses provisions, including prepayments or calls.

Zero-Coupon Securities: Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity.
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City of Redondo Beach Investment Policy Fiscal Year 2024 35

EXHIBIT C

INVESTMENT PROCEDURES MANUAL
The Investment Procedures Manual is attached.
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1 INVESTMENT PROCEDURES MANUAL
In accordance with Section 12 of the City’s Statement of Investment Policy, the City Treasurer will maintain an Investment Procedures Manual. The Investment Procedures Manual lists operations associated with the placement, settlement, and clearance of all City investments.

The City Treasurer in conjunction with the City’s contracted financial advisor (“Financial Advisor”), will plan, execute and report investment activity in compliance with the City’s Statement of Investment Policy. The investment procedures are as follows:

1. The City Treasurer will periodically discuss cash inflows and outflows with the City management to identify dates of when maturities are needed to provide liquid funds and meet the City’s Statement of Investment Policy’s parameters.

2. On behalf of the Treasurer, the Financial Advisor will perform the following duties. a. Seek securities which meet cash flow needs.
b. After cash flow needs are met, seek securities which provide additional relative value to the portfolio’s yield and duration.
c. Obtain offers to purchase, or bids if selling, securities which meet the above mentioned criteria.

3. On behalf of the Treasurer, the Financial Advisor will perform the following duties. a. Contact the City Treasurer to review and either approve or disapprove the transaction.
b. If City Treasurer directs that a security be sold, place the security out for bid with at least three broker/dealers in compliance with the competitive bid requirement. c. Execute the trade at the most advantageous price.
d. Send trade ticket to the City Treasurer for signature. e. Send signed trade ticket to the custodian and the City’s Financial Services Department for settlement.
f. Send signed trade packet to the City Treasurer

4. City Treasurer will review wire transfers by the City’s Financial Services Department to the custodian for settlement.

5. On behalf of the Treasurer, the Financial Advisor will perform the following duties. a. Monitor and verify the settlement of the transaction. b. Input trading activity into the investment accounting system. c. Send Monthly Investment Reports to the City Treasurer d. Include all detailed investment reporting on all Quarterly reports. e. Monitor credit ratings of the securities in the investment pool for compliance with the City’s Statement of Investment Policy.
f. Analyze the entity, if a security’s credit rate drops below allowable ratings..

6. In the event the Financial Advisor determines that a security should be sold due to expected value deterioration, then the Financial Advisor shall seek direction from the City Treasurer.

7. The City Treasurer will send monthly investment reports to the Mayor and City Council, City Manager, City Clerk, and Director of Financial Services.

8. The City Treasurer will present quarterly investment reports to the City Budget and Finance Commission, and to the Mayor and City Council.

9. Annually, the City Treasurer will present this Investment Procedures Manual and the City’s Statement of Investment Policy to the City Budget and Finance Commission and to the Mayor and City Council for review and adoption.
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Administrative
Report
H.12., File # 24-1804 Meeting Date: 11/19/2024
To: MAYOR AND CITY COUNCIL
From: EUGENE SOLOMON, CITY TREASURER
TITLE

APPROVE AN INVESTOR AGREEMENT TO JOIN JOINT POWERS AUTHORITY CALIFORNIA

ASSET MANAGEMENT TRUST, AT NO COST TO THE CITY, IF THE RECOMMENDED

AMENDMENT TO THE ANNUAL INVESTMENT POLICY IS APPROVED

EXECUTIVE SUMMARY
The California Asset Management Program (or CAMP) is a California Joint Powers Authority (JPA) established in 1989 to provide California public agencies with professional investment services.

CAMP is directed by a Board of Trustees, which is made up of experienced local government finance directors and treasurers. CAMP offers a range of services to assist public agencies with investing their operating funds, bond proceeds, debt service funds, and reserve funds. Investments offered through the Cash Reserve Portfolio (the Pool) are permitted for all local agencies under California Government Code Section 53601(p).

With approval of this Agreement to join CAMP, the City Treasurer’s Office will be able to invest funds for the short-term to ensure the City meets all daily cash flow and liquidity requirements.

BACKGROUND
The City currently utilizes U.S. Bank money market funds as well as Local Agency Investment Funds (LAIF) to manage liquidity within the investment portfolio.

With the addition of Section N within the Investment Policy, The City may invest up to 20% of its portfolio in shares issued by a Joint Powers Authority, as established under California Government Code Section 6509.7.

With the approval of CAMP as an additional option, the City will be able to manage liquidity within the investment portfolio by transferring money to and from the account as needed for cash flow purposes.

Given the favorable interest rate compared to the current options available, the City may see an increase in investment earnings going forward.

COORDINATION
The Investor Agreement and associated documents for CAMP were reviewed as to form by the City Attorney’s Office

FISCAL IMPACT
There is no fiscal impact as a result of joining the CAMP JPA as there is no cost to the City.

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Redondo Beach City CouncilNovember 19, 2024

Redondo Beach City Council
November 19, 2024