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Agenda packet

Redondo Beach City Council
October 6, 2026

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Agenda packet
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October 6, 2026
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Redondo Beach City Council
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responsible for the safety of residents and should rely on its own analysis. Provided for discussion purposes.

TECHNICAL HAZARD MEMORANDUM
TO: City of Redondo Beach City Council, Planning Department & Permitting Departments FROM: M.E. Nelson, Public Record Technical Review
DATE: September 23, 2026
SUBJECT: Offsite Consequence & Heavy Gas Dispersion Analysis: Bulk Cryogenic Argon Tank Failure at 2477 Manhattan Beach Blvd

EXECUTIVE SUMMARY & SOFTWARE DECLARATION
This memorandum provides a formalized Offsite Consequence Analysis (OCA) regarding a potential catastrophic release from a 12,000-gallon bulk liquid argon (LAR) storage tank at 2477 Manhattan Beach Blvd. Graphics are provided of dispersion from the federal models. Red areas are potentially fatal. Orange areas are potentially severe enough to limit the ability to evacuate. Yellow areas have transient health impacts. On a typical weather day, all three zones exist in the event of a rupture of a liquid argon tank.

Despite repeated requests, the City has elected to ignore asphyxiation safety. LA County Fire’s recent email was clear, that safety analysis is the responsibility of Redondo Beach Planning & Safety and RBFD. LA County offered to help Redondo Beach, but the City has demonstrated no interest in safety analysis for surrounding neighborhoods.

To evaluate offsite hazards, this analysis utilizes the federal government’s integrated CAMEO® (Computer-Aided Management of Emergency Operations) software suite, developed jointly by the U.S. Environmental Protection Agency (EPA) Office of Emergency Management and the National Oceanic and Atmospheric Administration (NOAA) Emergency Response Division:
● CAMEO Chemicals (https://cameochemicals.noaa.gov) (Accessed September 23, 2026):

Used to establish physical-chemical constants and Protective Action Criteria (PAC) exposure thresholds for Argon.
● ALOHA® (Areal Locations of Hazardous Atmospheres), Version 5.4.7 (https://www.epa.gov/cameo/aloha-software): Used to model biphasic liquid release, puddle evaporation, and heavy gas dispersion dynamics.
● MARPLOT® (Mapping Application for Response, Planning, and Local Operational Tasks), Version 5.1.1 (https://www.epa.gov/cameo/what-cameo-software-suite): Used to map spatial hazard footprints over local parcel and transportation geography.

By contrasting a baseline Average Annual Weather Scenario against a legally mandated Worst-Case Weather Scenario (EPA Risk Management Program standards), this analysis highlights the critical uncertainty and operational risk associated with heavy gas slumping in dense urban corridors.
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responsible for the safety of residents and should rely on its own analysis. Provided for discussion purposes.

SCENARIO SPECIFICATIONS & SOURCE STRENGTH
● Chemical: Argon (MW: 39.95 g/mol; Boiling Point: -302.6°F) ● Thresholds (Protective Action Criteria):
○ PAC-1 (Yellow): 65,000 ppm (Mild/transient health impacts / asphyxiation awareness) ○ PAC-2 (Orange): 230,000 ppm (Irreversible health effects / impaired escape) ○ PAC-3 (Red): 400,000 ppm (Life-threatening / severe oxygen depletion) ● Vessel & Leak Geometry: 12,000-gallon vertical cylinder (7.33 ft diameter × 38 ft length), 83% full (58.8 tons liquid mass). A catastrophic 5-foot circular opening located 19 feet from the bottom causes a 47,040 lb liquid spill in 1 minute onto concrete, forming a 41- yard evaporating cryogenic puddle.

COMPARATIVE ANALYSIS: AVERAGE VS. WORST-CASE PLUMES

1. Average Annual Weather Case
● Parameters: Air Temp 66°F, 60% Relative Humidity, Wind 3 knots from West, Cloud Cover 3/10, Atmospheric Stability Class B (unstable/moderate mixing), Building Air Exchange Rate 0.32 ACH.
● Dispersion Dynamics: Strong solar radiation and daytime convective turbulence carry the evaporating argon gas downwind toward the east.
● Hazard Footprint:
○ PAC-3 (Red): 100 yards downwind
○ PAC-2 (Orange): 145 yards downwind
○ PAC-1 (Yellow): 314 yards downwind
See AnnualAvgWeatherCasePlume-Marplot.jpg below:
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responsible for the safety of residents and should rely on its own analysis. Provided for discussion purposes.

YELLOW: PAC-1 : Mild, transient health effects (Shaded=predicted, Outline=uncertainty) ORANGE: PAC-2 : Irreversible or other serious health effects that could impair the ability to take protective action.

RED: PAC-3 : Life-threatening health effects.

2. Worst-Case Scenario (EPA RMP / CalARP Standard)
● Parameters: Air Temp 95°F, 50% Relative Humidity, Wind 3 knots from West (1.5 m/s), Cloud Cover 0/10, Atmospheric Stability Class F (extreme night/stagnant inversion override), Building Air Exchange Rate 0.49 ACH.
● Dispersion Dynamics: The heated concrete ground causes rapid boiling of the -302.6°F liquid pool. Because Stability Class F eliminates vertical mixing, gravity forces the dense cloud to slump radially outward faster than the weak 3-knot breeze can push it. ● Hazard Footprint:
○ PAC-3 (Red): Threshold (400,000 ppm) not exceeded beyond immediate spill pool due to rapid initial radial expansion and dilution.
○ PAC-2 (Orange): Expands to 160 yards, pushing upwind and crosswind across Manhattan Beach Blvd and Inglewood Ave.
○ PAC-1 (Yellow): Expands to 316 yards, creating a blunt 360-degree radial footprint that engulfs adjacent commercial parcels (e.g., Havana Mania) and residential homes to the south and west.
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responsible for the safety of residents and should rely on its own analysis. Provided for discussion purposes.

See WorstCasePlume-Marplot.jpg below:

YELLOW: PAC-1 : Mild, transient health effects (Shaded=predicted, Outline=uncertainty) ORANGE: PAC-2 : Irreversible or other serious health effects that could impair the ability to take protective action.

PLANNING & POLICY IMPLICATIONS

1. Uncertainty & The Prevailing Wind Fallacy: Relying solely on average prevailing westerly winds creates a false sense of security. Under worst-case nocturnal inversion conditions (Stability Class F), heavy gas slumping drives dangerous asphyxiant concentrations upwind into areas typically assumed safe.

2. Emergency Response Invalidations: Standard hazmat protocols dictate approaching a chemical release from upwind. As demonstrated in the Worst-Case MARPLOT overlay, first responders approaching from the west along Manhattan Beach Blvd would unknowingly enter a PAC-2 (230,000 ppm) asphyxiation zone.

3. Regulatory Precedent: Municipal reviews that issue Mitigated Negative Declarations (MNDs) without requiring formal Offsite Consequence Modeling deviate from standard practices established by the U.S. Department of Energy (DOE) and California Accidental Release Prevention (CalARP) frameworks.

4. Understanding the Risks: The Worst-Case scenario is dictated by regulation. In Redondo Beach, the typical, average weather is much cooler and would cause the liquid 918

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responsible for the safety of residents and should rely on its own analysis. Provided for discussion purposes. to return to its gas state more slowly. That creates a localized zone of unbreatheable gas mixture. Due to the 95 degree F temperature required for the Worse-Case scenario, the liquid gasifies more quickly as it hits the air and the built environment, mitigating the most dangerous impacts. Counterintuitive, but correct.
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responsible for the safety of residents and should rely on its own analysis. Provided for discussion purposes.

APPENDIX: REGULATORY REFERENCES & CASE STUDIES
● Lucas County Emergency Management Agency (OH): Formally catalogs industrial cryogenic storage and utilizes ALOHA modeling to map offsite vulnerability zones for bulk liquid argon and nitrogen. (Reference: Matheson-Holland Emergency Plan, https://www.co.lucas.oh.us/DocumentCenter/View/92444/Matheson-Holland) ● U.S. Department of Energy (Lawrence Livermore National Laboratory EIS):

Mandates heavy gas dispersion modeling using PAC thresholds for large-scale asphyxiants to establish site safety perimeters. (Reference: Final Site-Wide Environmental Impact Statement (EIS) for Continued Operation of LLNL, DOE/EIS-0547, https://www.energy.gov/nepa/articles/doeeis-0547-final-environmental-impact-statement) ● AIDIC Hazardous Materials Hazard Analysis (2014): Confirms that biphasic spillage and heavy gas evaporation of cryogenic inert liquids present significant offsite oxygen depletion risks requiring mapped spatial buffers. (Reference: Chemical Engineering Transactions, Vol. 36, https://www.aidic.it/cet/14/36/093.pdf) 920

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responsible for the safety of residents and should rely on its own analysis. Provided for discussion purposes.

AVERAGE DAY OF THE YEAR SCENARIO
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responsible for the safety of residents and should rely on its own analysis. Provided for discussion purposes.

WORST CASE SCENARIO
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PUBLIC COMMENT 02 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Thursday, September 24, 2026 at 9:12 AM

SUBJECT
Public Comment: A mere 1% value diminution from
Impulse Space's Variance is a $10M property value
loss

SUPPORTING MATERIALS INCLUDED
- One Billion Property Value Immediately South of Impulse Space The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
923
From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Nick Biro; Zein Obagi Subject: Public Comment: A mere 1% value diminution from Impulse Space"s Variance is a $10M property value loss Date: Thursday, September 24, 2026 9:12:43 AM
Attachments: One Billion Property Value Immediately South of Impulse Space.pdf One Billion Property Value Immediately South of Impulse Space.pdf CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

The residential neighborhood directly south of 2477 Manhattan Beach Blvd has an estimated property value of over $1B. Yet, Impulse Space is seeking a variance in the "buffer" area zoned IC-1 that according to the peer-reviewed literature will likely damage property values.

There has been no consideration by the City of either the safety or property value impact as part of the record in the variance proceeding. Yet, even a small 1% impact by the variance is $10M of property value.
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MEMORANDUM
DATE: September 21, 2026
SUBJECT: Residential Inventory Count & Market Valuation Analysis — Neighborhood South of Impulse Space Property Value Estimated to Exceed $1 Billion Executive Summary
An analysis was conducted to estimate the total residential property value for the neighborhood situated immediately south of Manhattan Beach Boulevard / Impulse Space facilities in North Redondo Beach (ZIP 90278). Based on visual lot mapping and recent Redfin transaction data (past 3 years), the neighborhood comprises approximately 580 residential single-family lots. With an average sale price of $1,850,038, the total estimated residential market value for this enclave is $1.073 billion.

1. Neighborhood Map & Inventory Count
The provided map delineates the single-family residential tract bounded by Manhattan Beach Blvd to the north, Inglewood Ave to the east, Robinson St to the south, and Johnston Ave / May Ave to the west.
● Street-by-Street Parcel Distribution:
○ Johnston Ave / White Cir / Pinckard Ave / May Ave Corridor: ~115 homes ○ Sebald Ave, Burritt Ave, Spurgeon Ave, Thomas Ave, Hawkins Ave: ~145 homes ○ Dow Ave / Gibson Pl Spine: ~80 homes
○ 159th St, 160th St, Vargas Way, Faber St, Carlsbad St: ~90 homes ○ Beland Blvd, Blaisdell Ave, Perkins Ln, Barkley Ln: ~150 homes ● Total Visual Parcel Count: ~580 single-family residential homes

2. Historical Sales Data Analysis (Redfin - Past 3 Years) Analysis of the 46 valid single-family home transactions in this immediate neighborhood over the past 3 years reveals the following price dynamics:

Metric Value
Total Qualified Sales 46 homes
Average Sale Price $1,850,038.04
Median Sale Price $1,595,000.00
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Minimum Sale Price $950,000.00
Maximum Sale Price $4,300,000.00
Standard Deviation $740,851.30
Average Price / Sq. Ft. ~$980 – $1,100 / sq. ft.

Note: The spread between the median ($1.595M) and average ($1.850M) reflects recent luxury infill/new construction modern builds (such as multi-million dollar rebuilds on Johnston Ave and Timothy Ave).

3. Estimated Total Neighborhood Value
Applying the market metrics to the neighborhood housing stock yields the following valuation scenarios:
● Baseline Valuation (Mean Price):
$$\text{Total Market Value} = 580 \text{ homes} \times \$1,850,038.04 = \mathbf{\$1,073,022,065.22}$$
● Conservative Valuation (Median Price):
$$\text{Conservative Value} = 580 \text{ homes} \times \$1,595,000.00 = \mathbf{\$925,100,000.00}$$
● Sensitivity Range (550 to 620 Homes):
○ 550 Homes @ Average Price: $1.018 Billion
○ 600 Homes @ Average Price: $1.110 Billion
○ 620 Homes @ Average Price: $1.147 Billion
Conclusion
The residential community directly south of the proposed Impulse Space tanks contains roughly 580 homes representing over $1.07 Billion in total residential real estate value. 926
PUBLIC COMMENT 03 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Thursday, September 24, 2026 at 3:02 PM

SUBJECT
Public Comment: 38-foot industrial gas tanks in a
transitional-by-design area will diminish residential
property values

SUPPORTING MATERIALS INCLUDED
- The Negative Impact of Visible Industrial Facilities - Application to the Impulse Space Variance
- Addendum Industrial Visibility Property Value Study Summaries Revised 09212026 (vF)
The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
927
From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Nick Biro; Zein Obagi Subject: Public Comment: 38-foot industrial gas tanks in a transitional-by-design area will diminish residential property values
Date: Thursday, September 24, 2026 3:02:12 PM
Attachments: The Negative Impact of Visible Industrial Facilities - Application to the Impulse Space Variance.pdf Addendum_Industrial_Visibility_Property_Value_Study_Summaries_Revised_09212026 (vF).pdf CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

Through literature review of peer-reviewed studies, it is generally accepted that proximity to manufacturing and industrial facilities reduces property values. Even in the cases where the statistical evidence is not significant, it demonstrates a negative impact on property values.

The research also distinguishes the industrial impacts into effectively the mere presence of industrial and the visibility of the industrial in the viewshed.

In the case of Impulse Space's IC-1 zoning, the City deliberately selected a 30-foot height limit for the transitional area as it was the same as residential height limits. As such, the industrial with 110-foot limits is distant, the adjoining IC is 30-foot and the residential is 30- foot, putting the IC zone out of sight.

The request for a variance to 38-feet will make the large white industrial tanks clearly visible into the neighborhood. The research shows that visibility is a separable component of the value decline in adjoining neighborhoods. A CalTech study showed that the further residences suffer less devaluation, as expected, ranging to 11% value loss directly adjacent to the industrial to a 2% value loss at about 1000-feet distance. In the over $1B property value adjoining neighborhood, each 1% of value decline represents $10M of resident-voter wealth loss.

The IC-1 zone height limit must be enforced. The area was designed as a buffer, it should not be allowed to diminish property values further from erecting large, industrial tanks that will clearly extend the plant's impacts by viewshed hundreds of feet further into the neighborhood, amplifying the loss percentage of property values.

Attachments: Memo with research addendum
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MEMORANDUM
DATE: September 21, 2026
SUBJECT: Impact of Visible Industrial Facilities on Residential Property Values and Enforcement of IC-1 Zoning Height Restrictions
Introduction
This memorandum outlines the economic impacts of visible industrial structures on adjacent residential properties, drawing upon the findings detailed in the addendum. It also examines the policy intent of the Redondo Beach Municipal Code and General Plan concerning the Industrial-Commercial (IC-1) zone's function as a buffer designed to protect surrounding residential neighborhoods.

The Negative Impacts of Visible Industrial Facilities
on Residential Values
The review of peer-reviewed real estate and spatial economic literature demonstrates that the visibility of industrial facilities—particularly those protruding above standard development heights—constitutes a measurable residential disamenity. The research synthesis highlights several key findings regarding structural height and viewsheds:
● The studies support the proposition that what is actually visible can matter independently of simple distance.
● Distance to an industrial site has a statistically significant negative effect on residential values, with the research expressly identifying the obstruction of view among industrial externalities.
● Industry can be treated as an explicit component of the visible scene and valued separately from mere proximity.
● There is strong methodological support for separating the condition where a facility exists nearby from the condition where a facility is visible above intervening development.
● The height of a vertical structure can materially alter the viewshed. 929
● A relatively small height exceedance can change which residences enter the viewshed.
● For the Redondo Beach fact pattern, the economically relevant change is not merely that an industrial use exists nearby, but rather the change from an industrial use substantially contained within a common 30-foot development envelope to vertically prominent equipment at roughly 38 feet or higher.
● This vertical prominence may cause the equipment to become visible and identifiable from residences where the industrial use otherwise would not be apparent.

IC-1 Zoning as a Protective Buffer Under the Redondo
Beach Municipal Code
Under the Redondo Beach Municipal Code (Title 10, Chapter 2), the specific purposes of the industrial and industrial-commercial zone regulations—including I-1, I-2, and IC-1—are explicitly crafted to ensure compatibility with the community.

Among these stated purposes are the mandates to "minimize the impact of industrial and commercial uses on adjacent residential zones" and to "ensure that the appearance and effects of industrial and commercial uses are compatible with the character of the area in which they are located."
The IC-1 (Industrial Commercial) zone operates as a vital transitional hybrid area.

It is intended to buffer heavier industrial operations (such as those in the I-1 zone) from abutting Single-Family Residential (R-1) zones. A critical mechanism for achieving this buffer is the strict regulation of development envelopes, notably the 30-foot maximum building height requirement present in local industrial development standards.

When variances are requested to exceed this 30-foot height limit—such as recent proposals for 38-foot bulk cryogenic storage tanks—the core buffering intent of the municipal code is compromised. As the research demonstrates, it is the tall industrial object, not the underlying parcel, that determines distant industrial identification. Approving height variances allows industrial infrastructure to pierce the visual skyline, transforming an otherwise screened industrial use into a 930
recognizable disamenity for neighboring homes. To uphold the integrity of the General Plan and protect residential property values, the city must enforce the IC-1 height limits and prevent industrial uses from visually encroaching on residential viewsheds.

Summary and Conclusion
The City of Redondo Beach is obligated by its foundational municipal and planning documents to provide specific protections to its residents. These mandated protections require the City to:
● Promote the economic stability of existing land uses (Redondo Beach Municipal Code Title 10, Chapter 2).
● Maintain a high level of quality and character in residential neighborhoods (Redondo Beach Municipal Code Title 10, Chapter 2).
● Ensure land use compatibility by minimizing the impact of commercial and industrial uses on adjacent residential zones (Redondo Beach Municipal Code Title 10, Chapter 2).
● Protect the public health, safety, and general welfare of the population when considering zoning variances and land use changes (Redondo Beach Municipal Code Administration).
● Preserve community character, proactively protect neighborhoods, and ensure a high quality of life (Redondo Beach General Plan Guiding Principles).

Granting a variance that allows the IC-1 zone to abrogate its transitional nature and exceed established height limits actively undermines these mandated protections.

Based on the peer-reviewed research establishing that the visual prominence of vertical industrial facilities constitutes a measurable residential disamenity, permitting such a variance will ultimately fail to protect the general welfare of the surrounding neighborhoods and fail to protect residential property values. ● The literature review of studies provided directly supports that premise that increasing the visibility of the IC-1 Impulse Space will have a further negative impact on the already reduced residential property values to its south.
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The CalTech working paper by Grether and Mieszkowski (1980) examined the effects of nonresidential land uses on adjacent housing prices. In their statistically significant West Haven Industrial (1) experiment, they found a severe negative value relationship associated with proximity to industrial property. The study established that homes located directly at the industrial boundary suffer up to an 11% property value diminishment compared to unimpacted neighborhood homes located 1,420 feet away.

Distance from Industrial
Boundary
Property Value Impact Value Recovery
Adjacent (0 feet) 11% Diminishment Baseline
760 feet 5% Diminishment 6% Recovery
1,090 feet 2% Diminishment 9% Recovery
1,420 feet 0% Diminishment 11% Recovery (Full Value)
This devaluation operates on a localized gradient: moving away from the devalued boundary, residential property values recover by 6% at 760 feet, by 9% at 1,090 feet, and reach their full expected value (an 11% recovery) at a distance of 1,420 feet. For the IC-1 Impulse Space facility, this establishes a clear, measurable diminishment zone extending outward to 1,420 feet from the industrial edge, with the maximum 11% devaluation falling squarely on adjacent property owners. 932
Industrial Visibility and Residential Property Values
Study-by-Study Summaries from the Prior Research Workbook Focus: industrial visibility, vertical structures, viewsheds, proximity effects, and reported property-value diminution How to Read This Review
This document summarizes the retained Industrial Visibility / Residential Property Value research, focusing on direct industrial/view evidence, vertical-structure/viewshed methodology, general industrial-proximity evidence, and contrary/boundary evidence.

The prior research conclusion was that no strong peer-reviewed transaction-price study was located that isolates above-ground storage tanks or silos as a visual-only residential disamenity. The strongest remaining evidentiary chain is therefore: direct industrial-view studies + general viewshed/vertical-structure methodology + general industrial-proximity studies, with contrary studies retained. 1 - Direct industrial/view

1. The Impact of Industrial Sites on Residential Property Values: A Hedonic Pricing Analysis from the Netherlands
Authors: Friso de Vor; Henri L.F. de Groot
Publication: Regional Studies 45(5):609-623 (2011)
Study setting: Industrial sites; Netherlands residential sales Method: Hedonic pricing; distance to industrial sites; paper expressly identifies obstruction of view among industrial externalities
Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Distance to an industrial site has a statistically significant negative effect on residential values; effect is largely localized and varies with industrial-site size.

Relevance to the 38-ft tank / skyline issue: Core industrial evidence. Supports treating visible industrial character/obstruction of view as a residential disamenity. Useful benchmark for the maximum 'industrial identified' effect.

Important limitation: Does not separately estimate the coefficient attributable only to visual recognition or protruding equipment.

Primary source: https://doi.org/10.1080/00343401003601925 Additional source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1398803

2. Estimation of the Influence of View Components on High-Rise Apartment Pricing Using a Public Survey and GIS Modeling
Authors: Ian D. Bishop; Eckart Lange; Alani Muhammad Mahbubul Publication: Environment and Planning B: Planning and Design 31(3):439-452 (2004) Study setting: Views containing parks, water, industry and high-rise buildings Method: GIS determines what is visible and the proportion of each land use/structure in the view; survey estimates willingness to pay
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Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Demonstrates that industry can be treated as an explicit component of the visible scene and valued separately from mere proximity.

Relevance to the 38-ft tank / skyline issue: Direct support for the proposition that 'industrial visible in the viewshed' is a measurable housing attribute.

Important limitation: Willingness-to-pay/view study rather than transaction-price study of detached R-1 homes.

Primary source: https://doi.org/10.1068/b3042

3. A Sight for Sore Eyes: Assessing the Value of View and Land Use in the Housing Market Authors: Andrea Baranzini; Caroline Schaerer
Publication: Journal of Housing Economics 20(3):191-199 (2011) Study setting: 13,000 Geneva dwellings; natural and built environment Method: 3-D GIS view measures at dwelling level plus hedonic rental model Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Both land use and what is actually visible significantly affect rents; working-paper version reports natural views raise rents while views of built environment lower rents.

Relevance to the 38-ft tank / skyline issue: Strong methodological support for separating 'facility exists nearby' from 'facility is visible above intervening development.' Important limitation: Rental/apartment market; not specifically tanks or industrial equipment.

Primary source: https://doi.org/10.1016/j.jhe.2011.06.001 Additional source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=981189

4. A varying coefficient approach to estimating hedonic housing price functions and their quantiles
Authors: Alan T.K. Wan; Shangyu Xie; Yong Zhou
Publication: Journal of Applied Statistics 44(11):1979-1999 (2017) Study setting: Hong Kong housing; multiple view attributes including industrial-plant view Method: Hedonic housing-price/quantile modeling with view variables Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Study includes an industrial-plant-view variable; reported results indicate negative effects for industrial-plant views in portions of the market.

Relevance to the 38-ft tank / skyline issue: One of the closest studies to the proposition that seeing an industrial facility is itself a negative housing attribute.

Important limitation: High-density Hong Kong housing market; effect is not a transferable percentage for Redondo Beach.

Primary source: https://doi.org/10.1080/02664763.2016.1238053

5. Viewshed effects and house prices: Identifying the visibility value of the natural landscape Authors: Authors as listed by publisher
Publication: Landscape and Urban Planning 238:104818 (2023) Study setting: Repeated house sales; Haifa, Israel
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Method: Automated GIS viewsheds; spatial hedonic/panel models; separates visibility from proximity Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Shows that visibility can be econometrically identified separately from proximity and that results depend on range of visibility.

Relevance to the 38-ft tank / skyline issue: Methodological foundation for a before/after viewshed variable:
hidden industrial use versus vertically protruding, recognizable industrial equipment.

Important limitation: Studies natural amenities, not industrial disamenities.

Primary source: https://doi.org/10.1016/j.landurbplan.2023.104818

6. Gulf Views: Toward a Better Understanding of Viewshed Scope in Hedonic Property Models
Authors: Paul Hindsley; Stuart E. Hamilton; O. Ashton Morgan Publication: Journal of Real Estate Finance and Economics 47(3):489-505 (2013) Study setting: Residential sales; Pinellas County, Florida Method: LiDAR-based continuous measures of total view, continuous view segment and proximity to view content
Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Larger and more continuous visible view segments have measurable value; proximity to the viewed content also matters.

Relevance to the 38-ft tank / skyline issue: Supports quantifying how much of a tank/stack is exposed above the skyline rather than using only a binary distance measure.

Important limitation: Positive water view rather than industrial disamenity.

Primary source: https://doi.org/10.1007/s11146-012-9365-0 Additional source: https://ideas.repec.org/a/kap/jrefec/v47y2013i3p489-505.html

7. Heights and locations of artificial structures in viewshed calculation: How close is close enough?
Authors: Authors per publisher record
Publication: Landscape and Urban Planning (2008)
Study setting: Artificial structures and GIS viewshed accuracy Method: Examines structure height/location in viewshed calculation; reviews property-value literature Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Notes prior findings that views of buildings and industrial areas decrease property values and emphasizes that structure height materially affects calculated visibility.

Relevance to the 38-ft tank / skyline issue: Directly relevant to the 30-ft versus 38-ft-plus geometry: a relatively small height exceedance can change which residences enter the viewshed.

Important limitation: Primarily a viewshed-methodology paper, not a tank-specific hedonic estimate.

Primary source: https://www.sciencedirect.com/science/article/pii/S0169204607000692

8. GIS Generated Viewshed of an Incinerator Chimney (research described in environmentaleconomics proceedings) Authors: Ian Bateman / Andrew Lovett research described in proceedings 935
Publication: Environmental Economics workshop proceedings (1994) Study setting: Incinerator chimney located in a valley
Method: GIS viewshed compared with simple distance
Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Example notes homes <1 km away may not see the stack while homes up to 10 km away may have an unimpeded view; distance alone can mask a chimney's visual effect.

Relevance to the 38-ft tank / skyline issue: Conceptually close to the screening issue: the tall industrial object, not the underlying parcel, determines distant industrial identification.

Important limitation: Not treated as peer-reviewed final evidence; retained as methodological/supporting source.

Primary source: https://www.outdoorrecreation.org.uk/wp-content/uploads/2017/02/CRN-WORKSHOP-1994- ENVIRONMENTAL-ECONOMICS.compressed.pdf
3 - General industrial proximity

9. Effects of Location Elements on Home Purchase Prices and Rents in San Francisco Bay Area Authors: Kara Maria Kockelman
Publication: Transportation Research Record 1606:40-50 (1997) Study setting: San Francisco Bay Area residential values; industrial land use among neighborhood variables Method: Hedonic models controlling for housing structure, accessibility, travel costs and local land-use patterns Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: After controlling for travel costs, high proximity to industrial land uses and very local commercial activity depresses land and dwelling-unit values, often substantially.

Relevance to the 38-ft tank / skyline issue: California evidence for the upper-bound concept: once a neighborhood is visibly/readily identifiable as industrial, industrial proximity is a negative market attribute.

Important limitation: Does not isolate visual identification from other industrial externalities.

Primary source: https://doi.org/10.3141/1606-06
Additional source: https://www.caee.utexas.edu/prof/kockelman/public_html/homepric.pdf

10. Disentangling property value impacts of environmental contamination from locally undesirable land uses
Authors: Laura O. Taylor; Daniel J. Phaneuf; Xiangping Liu Publication: Journal of Urban Economics 93:85-98 (2016) Study setting: Twin Cities residential sales near contaminated and uncontaminated commercial properties Method: Difference-in-differences and repeat-sales models Reported diminution: About 2.5% near clean commercial properties versus about 8% near contaminated sites in cross-sectional results.

Principal finding: Cross-sectional results: proximity to clean commercial properties reduced neighboring home values about 2.5%, versus about 8% for contaminated sites; after remediation the remaining discount was largely indistinguishable from clean commercial land-use effect.

Relevance to the 38-ft tank / skyline issue: Demonstrates a negative land-use effect even without contamination—the commercial/industrial condition itself can carry a discount. 936
Important limitation: Commercial properties are broader than industrial and study does not isolate skyline visibility.

Primary source: https://doi.org/10.1016/j.jue.2016.03.004

11. Smelly Local Polluters and Residential Property Values: A Hedonic Analysis of Four Orange County (California) Cities
Authors: Jean-Daniel Saphores; Ismael Aguilar-Benitez
Publication: Estudios Económicos 20(2):197-218 (2005)
Study setting: Four Orange County, California cities; auto shops and polluting plants Method: GIS plus hedonic regression
Reported diminution: Residential price reductions up to 3.4% associated with local air/odor pollution.

Principal finding: Statistically significant residential price reductions up to 3.4% associated with local air/odor pollution.

Relevance to the 38-ft tank / skyline issue: Southern California evidence that relatively local industrial activities capitalize into nearby housing prices.

Important limitation: Mechanism is odor/air pollution, not primarily visual; secondary rather than core evidence for the tank argument.

Primary source: https://www.jstor.org/stable/40311503

12. Environmental Health Risks and Housing Values: Evidence from 1,600 Toxic Plant Openings and Closings
Authors: Janet Currie; Lucas Davis; Michael Greenstone; Reed Walker Publication: American Economic Review 105(2):678-709 (2015) Study setting: 1,600 U.S. toxic industrial plant openings/closings Method: Quasi-experimental openings/closings; housing-market data Reported diminution: About an 11% decline in housing values within 0.5 mile following toxic-plant openings.

Principal finding: Plant openings led to about an 11% decline in housing values within 0.5 mile.

Relevance to the 38-ft tank / skyline issue: Useful as an industrial 'fully identified facility' upper-context study, not as a direct estimate of visual tank effects.

Important limitation: Dominant mechanism includes toxic emissions/health risk; should not be used to attribute a visual-only percentage.

Primary source: https://doi.org/10.1257/aer.20121656
Additional source: https://pmc.ncbi.nlm.nih.gov/articles/PMC4847734/

13. Industrial Land Use, Externalities, and Residential Location Authors: James D. Burnell
Publication: Urban Studies 22(5):399-408 (1985)
Study setting: Industrial land use and residential location Method: Empirical analysis distinguishing localized and nonlocalized industrial externalities Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Addresses both localized and nonlocalized externalities associated with industrial land use.

Relevance to the 38-ft tank / skyline issue: Supports examining the geographic footprint created when an otherwise screened industrial use becomes identifiable at a distance. 937
Important limitation: Not a direct visibility or tank study.

Primary source: https://ideas.repec.org/a/sae/urbstu/v22y1985i5p399-408.html 4 - Contrary / boundary evidence

14. The Effects of Nonresidential Land Uses on the Prices of Adjacent Housing: Some Estimates of Proximity Effects
Authors: David M. Grether; Peter Mieszkowski
Publication: Journal of Urban Economics 8(1):1-15 (1980) Study setting: 16 neighborhood experiments near industry, commercial, high-density housing and highways Method: Hedonic price indices; distance from nonresidential use Reported diminution: Results are mixed rather than uniformly null. In West Haven Industrial (1), the distance variables were jointly significant at the 0.01 level. Table 3 estimates values about 6% higher at the sample mean distance, 9% higher at mean + 1 SD, and 11% higher at mean + 2 SD, relative to the industrial boundary (D = 0).

The other two industrial samples did not have jointly significant distance effects.

Principal finding: Across all 16 experiments, the authors found no systematic relationship between nonresidential land use per se and housing prices. However, the industrial results are more informative when separated by statistical significance: one of the three industrial experiments produced a strong, statistically significant proximity gradient, while two did not.

Relevance to the 38-ft tank / skyline issue: The statistically significant West Haven result is directly relevant as evidence that an industrial/residential boundary can produce a localized capitalization effect. The authors describe this site as light industry bordering a middle-class housing development, with some tree buffering. The paper also expressly identifies traffic and visual externalities as rationales for separating industrial/commercial activity from single-family neighborhoods. This does not isolate tank visibility or an 8-ft height exceedance, but it supports testing whether making industrial equipment perceptible from adjacent residences changes market value.
938
Statistically significant industrial result
West Haven Industrial (1): The distance terms were jointly significant at p < .01. The fitted distance function implies progressively higher values away from the industrial boundary. Table 3 reports approximately +6% at the mean sample distance, +9% at mean + 1 standard deviation, and +11% at mean + 2 standard deviations, using the boundary (D = 0) as the reference. The authors state that this result is sensible and that the data support treating the West Haven industrial zone as a disamenity.

Industrial results that were not statistically significant but indicated a negative value impact coefficient sign West Haven Industrial (2): The joint distance test was not significant. The fitted coefficients were distance = -0.030 and distance-squared = +0.0023. Those signs describe a curved fitted relationship, but because the distance terms were not jointly significant, they should not be presented as evidence of a measurable industrial discount.

Milford Industrial: The joint distance test was also not significant. The fitted coefficients were distance = -0.084 and distance-squared = +0.0031. Again, the point estimates initially slope in the direction of lower values with greater distance before curvature changes the fitted relationship; statistically, however, the study could not distinguish the distance effect from zero.

Interpretation of significance and coefficient signs
The useful distinction is therefore not “industrial proximity was negative but insignificant” across the study. The more accurate statement is that the three industrial experiments were heterogeneous: one showed a statistically strong adverse proximity effect, while two produced non-significant quadratic distance relationships whose individual coefficient signs should be treated as descriptive point estimates, not demonstrated market effects. This distinction preserves both the affirmative evidence and the contrary/boundary evidence.

Primary source: https://doi.org/10.1016/0094-1190(80)90052-2 Additional source: https://authors.library.caltech.edu/records/bscpz-3xy50 Synthesis of the Prior Analysis
The studies do not support assigning a single percentage diminution to the proposed tanks. They do support several narrower propositions: (1) industrial proximity can be capitalized negatively into residential values; (2) what is actually visible can matter independently of simple distance; (3) the height of a vertical structure can materially alter the viewshed; and (4) measurable effects can be highly localized. Grether and Mieszkowski add an important boundary condition: nonresidential land use per se did not produce a systematic price effect across all 16 experiments, yet one of their three industrial sites showed a statistically significant p < .01 distance gradient, with estimated values roughly 6%-11% higher at increasing distances from the industrial boundary. Their other two industrial samples were not statistically significant.

For the Redondo Beach fact pattern used in the prior analysis, the economically relevant change is not merely that an industrial use exists nearby. The proposed analytical exposure is the change from an industrial use substantially contained within a common 30-ft development envelope to vertically prominent equipment at roughly 38 ft or higher that may become visible and identifiable from residences where the industrial use otherwise would not be apparent. The combined literature therefore supports testing a project-specific visibility/proximity effect, but not importing a percentage from another facility or market. A defensible local estimate would require sales/comparable data combined with distance and viewshed variables. 939
PUBLIC COMMENT 04 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Thursday, September 24, 2026 at 3:31 PM

SUBJECT
Fwd: FW: 2477 Manhattan Beach Blvd. - Request for
HHMD Review of Cryogenic Tank Emergency Planning
The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
940
From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Zein Obagi Subject: Fwd: FW: Subject: 2477 Manhattan Beach Blvd. — Request for HHMD Review of Cryogenic Tank Emergency Planning (Case No. 2026-0595)
Date: Thursday, September 24, 2026 3:31:43 PM
Attachments: image001.png
2477_HHMD_Single_Tank_Catastrophic_Release_Memo.docx
Public Notice This 2477 Manhattan Beach Blvd Redondo Beach CA 90278 Exhibit is Defective.eml.msg CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

The following correspondence demonstrates that the City cannot defer its permitting process on fire and safety to LA County Fire for the Impulse Space variance. The City is obligated to determine the hazards along with mitigations prior to permitting or providing a variance. ---------- Forwarded message ---------
From: Fernando Florez <[email protected]> Date: Mon, Sep 14, 2026 at 3:00 PM
Subject: FW: Subject: 2477 Manhattan Beach Blvd. — Request for HHMD Review of Cry 6-0595)
To:

Cc: do.org>, Mario Tresierras
<[email protected]>, Mauricio Nunez Florez <[email protected]>
Good afternoon, Mr. Nelson.

The Los Angeles County Fire Department Health Hazardous Materials Division is the Certified Unified Participating Agency (CUPA) that has the inspection and enforcement authority over businesses that handle hazardous materials and/or generate hazardous waste in the city of Redondo Beach. However, the installation and permitting of new or proposed Aboveground Storage Tanks is under the authority of the Redondo Beach Fire Department’s Fire Prevention Office and the City of Redondo Beach Building and Safety Office. I copied Deputy Fire Marshal Jasen Brown of the Redondo Beach Fire Department on this email.

Once the permitting and installation process is complete, the Health Hazardous Materials Division’s Inspection Section inspects the business to ensure that the chemical inventory, site map, and business plan have been updated, uploaded, and are accurate in the California Electronic Reporting System (CERS).
941
Our Health HazMat’s Emergency Operations Section can assist with conducting an off-site consequence plume modeling for the proposed Argon gas.

If you have any questions, please feel free to contact me by phone at 818-534-7633.

Sincerely,
Fernando Florez, Assistant Chief
Community Risk Reduction Bureau
Health Hazardous Materials Division
Emergency Operations Section
5825 Rickenbacker Road
Commerce, CA 90040
(323) 890-4085 – Office
(818) 534-7633 – Cell
CONFIDENTIALITY NOTICE: This e-mail communication and any attachments, from the Los Angeles County Fire Department, may contain confidential and privileged information for the official use of the designated recipients. If you are not the intended recipient, (or authorized to receive for the recipient) you are hereby notified that you have received this communication in error and that any review, disclosure, use, dissemination, distribution, saving, or reproduction of this email or its contents is strictly prohibited. If you have received this communication in error, please notify us immediately by e-mail and destroy this message and any attachments. This e-mail communication is covered by the Electronic Communications Privacy Act, 18 U.S.C. § 2510-2521, and may be legally privileged.

From: Mark Nelson (Home Gmail)
Sent: Wednesday, August 26, 2026 8:15 PM
To: Fire-Hhmdcers <[email protected]>; FIRE-AskHHMD <[email protected]>; Cc: Scott Behrendt <[email protected]>; Mike Witzansky <[email protected]>; Andrew Winje <[email protected]>; Joy Ford <[email protected]>; Marc Wiener <[email protected]>; Sean Scully 942
CAUTION: External Email. Proceed Responsibly.

Reminder: Potentially hazardous physical situation that does not have any reported HAZMAT/HHMD Review. Basic mass transfer equations have a significant rupture of a 12,000 gallon tank of LAR rolling into the neighborhood. Residents deserve to know the plan and the City of RB/RBFD is pointing squarely at LA County Fire. Please advise. We are sending a certified communication since time is wasting before the next Redondo Beach permitting meeting.
---------- Forwarded message ---------
From: Mark Nelson (Home Gmail)
Date: Fri, Aug 21, 2026 at 1:55 PM
Subject: Subject: 2477 Manhattan Beach Blvd. — Request for HHMD Review of Cryogenic Tank Emergency Planning (Case No. 2026-0595)
To: <[email protected]>, <[email protected]> Cc: Scott Behrendt <[email protected]>, Mike Witzansky <[email protected]>, Andrew Winje <[email protected]>, Joy Ford <[email protected]>, Marc Wiener <[email protected]>, Sean Scully <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, org>, <[email protected]>, Mark N
Subject: 2477 Manhattan Beach Blvd. — Request for HHMD Review of Cryogenic Tank Emergency Planning (Case No. 2026-0595)
County of Los Angeles Fire Department
Health Hazardous Materials Division
cc: Redondo Beach Councilmember Behrendt, Mr. Witzansky, Ms. Ford, Mr. Wiener, and Members of the Planning Commission:

I am transmitting the attached memorandum on behalf of myself and interested residents in the neighborhood surrounding 2477 Manhattan Beach Boulevard, Redondo Beach, CA 90278, regarding the proposed bulk liquid-nitrogen and liquid-argon storage tanks.

The August 20 Planning Commission hearing was useful in identifying both the issues of concern to nearby residents and several questions of interest to the Commissioners. Among the subjects discussed were tank capacity, <[email protected]>; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Mark N Subject: Fwd: Subject: 2477 Manhattan Beach Blvd. — Request for HHMD Review of Cryogenic Tank Emergency Planning (Case No. 2026-0595)
943
separation from the residential neighborhood, oxygen displacement, emergency isolation and evacuation distances, and the consequences of a major vessel failure. The proposed tanks are approximately 222 feet from the nearest residential property.

The hearing also helped clarify the respective regulatory roles. Redondo Beach Fire Department indicated that it does not maintain its own hazardous-materials team and that Los Angeles County Fire performs the hazardousmaterials/CUPA inspection function for facilities of this type.

I do not interpret the questions raised at the hearing as establishing that the proposed tanks are unsafe. Rather, my takeaway was that some of the specific technical questions being asked by Commissioners and residents could not be answered in detail at the hearing and appear more appropriately directed to HHMD/CUPA.

That is the purpose of the attached memorandum.

In particular, I believe a useful and reasonably bounded question is the consequence of catastrophic failure of one full liquid-argon vessel. Argon is nonflammable and chemically inert, but a sufficiently large release can create an oxygen-deficient atmosphere. Because argon is denser than air—and a cryogenic release initially produces a very cold, dense gas—the proximity of the R-1 neighborhood immediately south of Manhattan Beach Boulevard makes the off-site consequence question worth resolving quantitatively.

The attached memorandum therefore does not assume simultaneous failure of all four vessels and does not attempt to establish an evacuation zone. It asks whether the appropriate reviewing agency has evaluated, or will evaluate, a credible single-vessel catastrophic release using the actual tank inventory and site conditions, and determine the resulting oxygen-deficiency/protective-action distances.

One difficulty apparent from the hearing is that responsibility for this installation is distributed among several regulatory functions. Planning is addressing the height variance; Building and RBFD have their respective responsibilities; and hazardous-materials review appears to reside principally with LA County Fire/HHMD-CUPA.

That division of responsibility may be entirely appropriate, but from the standpoint of the surrounding residents it makes it difficult to determine which agency evaluates the off-site consequences of a catastrophic cryogenic release and how that analysis becomes part of the overall safety review.

Accordingly, I would appreciate HHMD's assistance in answering the questions in the attached memorandum, particularly:

For catastrophic loss of one full maximum-capacity liquid-argon vessel at 2477 Manhattan Beach Boulevard, what analysis establishes the distance and direction at which oxygen concentrations remain above applicable oxygen-deficiency/protective-action criteria under reasonably conservative meteorological and site conditions, including at the R-1 residences south of Manhattan Beach Boulevard?
I am copying the City and Planning Commission because these questions arose directly from the public hearing and the answers should be useful to Commissioners, City staff, the applicant, and the surrounding residents. The hearing itself reflected substantial interest in obtaining additional information concerning these issues; one Commissioner specifically raised the possibility of continuing the matter to allow additional information and public outreach.

Thank you for your assistance. Our objective is straightforward: to identify the agency with the relevant technical responsibility, obtain the appropriate analysis, and give the surrounding residents and City decision-makers a clear factual basis for understanding the off-site emergency implications of the proposed installation.

Regards,
Mark Nelson
944
Attachment:
2477 Manhattan Beach Boulevard — Single-Tank Catastrophic Cryogenic Release / HHMD Review Request 945
PUBLIC COMMENT 05 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Thursday, September 24, 2026 at 4:55 PM

SUBJECT
Public Comment: The City has an Obligation to
Consider Surrounding Property Value Diminution
The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
946
From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Nick Biro; Zein Obagi Subject: Public Comment: The City has an Obligation to Consider Surrounding Property Value Diminution Due to Zoning Variance at Impulse Space
Date: Thursday, September 24, 2026 4:55:46 PM
CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

The City of Redondo Beach has expressly made the protection of property values, neighborhoods, and public health, safety and welfare purposes of its land-use regulations—not merely matters of resident preference. The Municipal Code states that Planning Commission Design Review exists to “protect property values,” prevent neighborhood blight and deterioration, promote sound land use, and protect the City’s health, safety and welfare; it further requires review of a project's relationship to its surroundings and its integration and compatibility with the neighborhood. RBMC §10-2.2502.

The Code likewise provides that conditional uses are reviewed to ensure that they do not adversely affect surrounding uses and properties, RBMC §10-2.2506, and a variance may be granted only upon the specific findings required by §10-2.2510—including circumstances particular to the property and assurance that the variance does not confer a special privilege unavailable to similarly zoned properties.

Accordingly, where these provisions apply, the City cannot properly treat a demonstrated adverse effect on neighboring residential property values as legally irrelevant: protection of those values is an expressly stated objective of the City's own development-review framework and must be considered together with neighborhood compatibility, surrounding-property impacts, and health, safety and welfare in making the findings required for approval. This does not mean that the City guarantees any homeowner a particular market value or that evidence of diminution, standing alone, necessarily requires denial of a project; rather, it means that where the applicable Code makes protection of property values and surrounding properties part of the governing purpose or approval criteria, credible evidence of such impacts is relevant evidence that the decision-maker should address in applying those standards and making the required findings. 947
PUBLIC COMMENT 06 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Friday, September 25, 2026 at 8:01 AM

SUBJECT
Public Comment - LA County Fire on Redondo Beach's
obligations for permitting hazard review
The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
948
From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Zein Obagi; Nick Biro Subject: Public Comment - LA County Fire on Redondo Beach"s obligations for permitting hazard review Date: Friday, September 25, 2026 8:01:50 AM
Attachments: image001.png
CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

I intended to forward the original reply from LA County, however, Gmail placed artifacts after it. This demonstrates that the LA County Fire post permitting process requires the safety analysis to be conducted PRE-PERMITTING by RBFD and RB health and safety. The City cannot defer its permitting process on fire and safety to LA County Fire for the Impulse Space variance. The City is obligated to determine the hazards along with mitigations prior to permitting or providing a variance.
---------- Forwarded message ---------
From: Fernando Florez <[email protected]> Date: Mon, Sep 14, 2026 at 3:00 PM
Subject: FW: Subject: 2477 Manhattan Beach Blvd. — Request for HHMD Review of Cry 6-0595)
To:

Cc: do.org>, Mario Tresierras
<[email protected]>, Mauricio Nunez Florez <[email protected]>
Good afternoon, Mr. Nelson.

The Los Angeles County Fire Department Health Hazardous Materials Division is the Certified Unified Participating Agency (CUPA) that has the inspection and enforcement authority over businesses that handle hazardous materials and/or generate hazardous waste in the city of Redondo Beach. However, the installation and permitting of new or proposed Aboveground Storage Tanks is under the authority of the Redondo Beach Fire Department’s Fire Prevention Office and the City of Redondo Beach Building and Safety Office. I copied Deputy Fire Marshal Jasen Brown of the Redondo Beach Fire Department on this email.

Once the permitting and installation process is complete, the Health Hazardous Materials Division’s Inspection Section inspects the business to ensure that the chemical inventory, site map, and business plan have been updated, uploaded, and are accurate in the California Electronic Reporting System (CERS).

Our Health HazMat’s Emergency Operations Section can assist with conducting an off-site 949
consequence plume modeling for the proposed Argon gas.

If you have any questions, please feel free to contact me by phone at 818-534-7633.

Sincerely,
Fernando Florez, Assistant Chief
Community Risk Reduction Bureau
Health Hazardous Materials Division
Emergency Operations Section
5825 Rickenbacker Road
Commerce, CA 90040
(323) 890-4085 – Office
(818) 534-7633 – Cell
CONFIDENTIALITY NOTICE: This e-mail communication and any attachments, from the Los Angeles County Fire Department, may contain confidential and privileged information for the official use of the designated recipients. If you are not the intended recipient, (or authorized to receive for the recipient) you are hereby notified that you have received this communication in error and that any review, disclosure, use, dissemination, distribution, saving, or reproduction of this email or its contents is strictly prohibited. If you have received this communication in error, please notify us immediately by e-mail and destroy this message and any attachments. This e-mail communication is covered by the Electronic Communications Privacy Act, 18 U.S.C. § 2510-2521, and may be legally privileged.

From: Mark Nelson (Home Gmail)
Sent: Wednesday, August 26, 2026 8:15 PM
To: Fire-Hhmdcers <[email protected]>; FIRE-AskHHMD <[email protected]>; Cc: Scott Behrendt <[email protected]>; Mike Witzansky <[email protected]>; Andrew Winje <[email protected]>; Joy Ford <[email protected]>; Marc Wiener <[email protected]>; Sean Scully <[email protected]>; [email protected]; [email protected]; wayne.craig 950
CAUTION: External Email. Proceed Responsibly.

Reminder: Potentially hazardous physical situation that does not have any reported HAZMAT/HHMD Review. Basic mass transfer equations have a significant rupture of a 12,000 gallon tank of LAR rolling into the neighborhood. Residents deserve to know the plan and the City of RB/RBFD is pointing squarely at LA County Fire. Please advise. We are sending a certified communication since time is wasting before the next Redondo Beach permitting meeting.
---------- Forwarded message ---------
From: Mark Nelson (Home Gmail)
Date: Fri, Aug 21, 2026 at 1:55 PM
Subject: Subject: 2477 Manhattan Beach Blvd. — Request for HHMD Review of Cryogenic Tank Emergency Planning (Case No. 2026-0595)
To: <[email protected]>, <[email protected]> Cc: Scott Behrendt <[email protected]>, Mike Witzansky <[email protected]>, Andrew Winje <[email protected]>, Joy Ford <[email protected]>, Marc Wiener <[email protected]>, Sean Scully <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>, org>, <[email protected]>, Mark N
@redondo.org; [email protected]; [email protected]; [email protected] rg; [email protected]; Mark N
Subject: Fwd: Subject: 2477 Manhattan Beach Blvd. — Request for HHMD Review of Cryogenic Tank Emergency Planning (Case No. 2026-0595)
951
PUBLIC COMMENT 07 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Friday, September 25, 2026 at 10:11 AM

SUBJECT
Public Comment - Neither Impulse Space nor City Staff
Met the Burden of the Requested Variance

SUPPORTING MATERIALS INCLUDED
- Impulse Proposed Resolution and Process Defects
The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
952
From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Nick Biro; Zein Obagi Subject: Public Comment - Neither Impulse Space no City Staff Met the Burden of the requested Variance and it Must be Denied
Date: Friday, September 25, 2026 10:11:27 AM
Attachments: Impulse Proposed Resolution and Process Defects.pdf CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

The facts are quite clear. The resolution prepared by staff was largely rebutted by the proponents sworn testimony. Other assertions assume that IC-1 should deserve all the privileges of I-1, which is clearly not true. See attached exhibit. 953
Material Evidentiary Defects in Proposed Resolution No. 2026-09-PCR-11
Assertion from City's Resolution
(Staff Proposed Findings)
Rebuttal / Evidentiary Defect
(Hearing Record)
Point I: Strict adherence to the zone district’s 30-foot height limit would "eliminate the ability of the property owner to use the property for the existing
manufacturing facility."
Impulse testified that smaller tanks were feasible
and already in use. Denial of the variance would
mean using "more tanks" and doing an impact
assessment, not an inability to operate.

Point II: The technical requirements of the required
infrastructure cannot be accommodated at a lesser
height without resulting in significantly more frequent deliveries.

Impulse conceded smaller tanks were feasible.

Staff acknowledged the larger tank simply "met their
needs," which is an operational preference, not a
technical impossibility.

Point III: A compliant-height infrastructure would
result in "significantly more frequent deliveries."
No quantitative delivery analysis (e.g., annual
consumption, delivery frequency, traffic effects) was
provided to support the magnitude of "significantly."
Impulse admitted the impact was "hard to quantify
exactly."
954
Assertion from City's Resolution
(Staff Proposed Findings)
Rebuttal / Evidentiary Defect
(Hearing Record)
Point IV: Additional deliveries have the potential for
the "greatest impact" on the adjacent residential
neighborhood.
"Greatest" is a comparative claim, yet there is no
comparative study evaluating the impacts of
38-foot tanks versus 30-foot tanks. Residents
explicitly requested data and traffic studies, which
were absent.

Point V: Physical hardships justify relief from the
standard height restriction to afford the property the
same development privileges as nearby properties with
a "similar zoning designation."
The applicable variance criterion requires
"identical zone designation," not "similar." The
resolution improperly uses more permissive
development standards of differently zoned I-1
property to invent a privilege for the IC-1 parcel.

Point VI: Because surrounding industrial properties
(with 100+ foot height limits) accommodate the same
aerospace manufacturing uses, this property should be
permitted similar physical development heights.

Similarity of use does not establish similarity of
development entitlement. The distinct zoning
height limits (30 feet vs 100+ feet) mean the
properties are not subject to identical development
standards.

Point VII: The variance does not constitute a special
privilege because similar infrastructure is found on
The standard requires comparison to properties
under the same zoning designation, not a 110-foot
limited I-1.. Comparing to differently regulated I-1
955
Assertion from City's Resolution
(Staff Proposed Findings)
Rebuttal / Evidentiary Defect
(Hearing Record)
"similarly situated properties with similar General Plan and Zoning designations."
property does not establish what constitutes a
privilege for the IC-1 parcel.

Point VIII: (Implied Focus) The focus of the findings
shifted to the adverse effects of the alternative
equipment (e.g., more trucks) rather than justifying the departure from the 30-foot height limit.

The variance must justify departing from the
30-foot standard. The findings fail to establish that
the additional 8 feet of tank height would have no
visual or land-use impact on adjacent R-1 residential
properties.

Point IX: (Implied by Approval) Neighborhood
operational effects from the variance were sufficiently established to justify the factual findings.

Proposed conditions required a post-approval
noise report and potential future mitigation (like a
wall), demonstrating that important operational
effects were unmeasured and not yet established as
factual findings.

Point X: The statements within the resolution's
findings are sufficient to legally justify the variance.

The evidentiary defects go directly to the core
rationale for the variance. The rejected resolution's
findings should not acquire factual status just
through repetition without new supporting
evidence.
956
PUBLIC COMMENT 08 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Friday, September 25, 2026 at 12:16 PM

SUBJECT
Public Comment: Allowing Tanks that Pierce the
30-foot Limit Will Create Industrial Property
Devaluation
The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
957
From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Nick Biro; Zein Obagi Subject: Public Comment: Allowing Tanks at Impulse that Pierce the 30-foot Limit Will Create and Industrial Property Devaluation
Date: Friday, September 25, 2026 12:16:23 PM
CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

Industrial Visibility and Residential Property Values
Study-by-Study Summaries from the Prior Research Workbook Focus: industrial visibility, vertical structures, viewsheds, proximity effects, and reported property-value diminution
How to Read This Review
This document summarizes the Industrial Visibility / Residential Property Value research, focusing on direct industrial/view evidence, vertical-structure/viewshed methodology, general industrial-proximity evidence, and contrary/boundary evidence.

Summary
For the Redondo Beach fact pattern, the economically relevant change is not merely that an industrial use exists nearby. The proposed analytical exposure is the change from an industrial use substantially contained within a common 30-ft development envelope to vertically prominent equipment at roughly 38 ft or higher that will become visible and identifiable from residences where the industrial use otherwise would not be apparent. The combined literature therefore supports testing a project-specific visibility/proximity effect. 1 - Direct industrial/view

1. The Impact of Industrial Sites on Residential Property Values: A Hedonic Pricing Analysis from the Netherlands
Authors: Friso de Vor; Henri L.F. de Groot
Publication: Regional Studies 45(5):609-623 (2011)
Study setting: Industrial sites; Netherlands residential sales Method: Hedonic pricing; distance to industrial sites; paper expressly identifies obstruction of view among industrial externalities
Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Distance to an industrial site has a statistically significant negative effect on residential values; effect is largely localized and varies with industrial-site size.

Relevance to the 38-ft tank / skyline issue: Core industrial evidence. Supports treating visible industrial character/obstruction of view as a residential disamenity. Useful benchmark for the maximum 'industrial identified' effect.

Important limitation: Does not separately estimate the coefficient attributable only to visual recognition or protruding equipment.

Primary source: https://doi.org/10.1080/00343401003601925 Additional source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1398803 958

2. Estimation of the Influence of View Components on High-Rise Apartment Pricing Using a Public Survey and GIS Modeling
Authors: Ian D. Bishop; Eckart Lange; Alani Muhammad Mahbubul Publication: Environment and Planning B: Planning and Design 31(3):439-452 (2004) Study setting: Views containing parks, water, industry and high-rise buildings Method: GIS determines what is visible and the proportion of each land use/structure in the view; survey estimates willingness to pay
Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Demonstrates that industry can be treated as an explicit component of the visible scene and valued separately from mere proximity.

Relevance to the 38-ft tank / skyline issue: Direct support for the proposition that 'industrial visible in the viewshed' is a measurable housing attribute.

Important limitation: Willingness-to-pay/view study rather than transaction-price study of detached R-1 homes.

Primary source: https://doi.org/10.1068/b3042

3. A Sight for Sore Eyes: Assessing the Value of View and Land Use in the Housing Market
Authors: Andrea Baranzini; Caroline Schaerer
Publication: Journal of Housing Economics 20(3):191-199 (2011) Study setting: 13,000 Geneva dwellings; natural and built environment Method: 3-D GIS view measures at dwelling level plus hedonic rental model Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Both land use and what is actually visible significantly affect rents; working-paper version reports natural views raise rents while views of built environment lower rents.

Relevance to the 38-ft tank / skyline issue: Strong methodological support for separating 'facility exists nearby' from 'facility is visible above intervening development.' Important limitation: Rental/apartment market; not specifically tanks or industrial equipment.

Primary source: https://doi.org/10.1016/j.jhe.2011.06.001 Additional source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=981189

4. A varying coefficient approach to estimating hedonic housing price functions and their quantiles
Authors: Alan T.K. Wan; Shangyu Xie; Yong Zhou
Publication: Journal of Applied Statistics 44(11):1979-1999 (2017) Study setting: Hong Kong housing; multiple view attributes including industrial-plant view Method: Hedonic housing-price/quantile modeling with view variables Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Study includes an industrial-plant-view variable; reported results indicate negative effects for industrial-plant views in portions of the market.

Relevance to the 38-ft tank / skyline issue: One of the closest studies to the proposition that seeing an industrial facility is itself a negative housing attribute.

Important limitation: High-density Hong Kong housing market; effect is not a transferable percentage for Redondo Beach.

Primary source: https://doi.org/10.1080/02664763.2016.1238053

5. Viewshed effects and house prices: Identifying the visibility value of the natural landscape
Authors: Authors as listed by publisher
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Publication: Landscape and Urban Planning 238:104818 (2023) Study setting: Repeated house sales; Haifa, Israel
Method: Automated GIS viewsheds; spatial hedonic/panel models; separates visibility from proximity Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Shows that visibility can be econometrically identified separately from proximity and that results depend on range of visibility.

Relevance to the 38-ft tank / skyline issue: Methodological foundation for a before/after viewshed variable:
hidden industrial use versus vertically protruding, recognizable industrial equipment.

Important limitation: Studies natural amenities, not industrial disamenities.

Primary source: https://doi.org/10.1016/j.landurbplan.2023.104818

6. Gulf Views: Toward a Better Understanding of Viewshed Scope in Hedonic Property Models
Authors: Paul Hindsley; Stuart E. Hamilton; O. Ashton Morgan Publication: Journal of Real Estate Finance and Economics 47(3):489-505 (2013) Study setting: Residential sales; Pinellas County, Florida Method: LiDAR-based continuous measures of total view, continuous view segment and proximity to view content
Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Larger and more continuous visible view segments have measurable value; proximity to the viewed content also matters.

Relevance to the 38-ft tank / skyline issue: Supports quantifying how much of a tank/stack is exposed above the skyline rather than using only a binary distance measure.

Important limitation: Positive water view rather than industrial disamenity.

Primary source: https://doi.org/10.1007/s11146-012-9365-0 Additional source: https://ideas.repec.org/a/kap/jrefec/v47y2013i3p489-505.html

7. Heights and locations of artificial structures in viewshed calculation: How close is close enough?
Authors: Authors per publisher record
Publication: Landscape and Urban Planning (2008)
Study setting: Artificial structures and GIS viewshed accuracy Method: Examines structure height/location in viewshed calculation; reviews property-value literature Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Notes prior findings that views of buildings and industrial areas decrease property values and emphasizes that structure height materially affects calculated visibility.

Relevance to the 38-ft tank / skyline issue: Directly relevant to the 30-ft versus 38-ft-plus geometry: a relatively small height exceedance can change which residences enter the viewshed.

Important limitation: Primarily a viewshed-methodology paper, not a tank-specific hedonic estimate.

Primary source: https://www.sciencedirect.com/science/article/pii/S0169204607000692

8. GIS Generated Viewshed of an Incinerator Chimney (research described in environmental-economics proceedings)
Authors: Ian Bateman / Andrew Lovett research described in proceedings Publication: Environmental Economics workshop proceedings (1994) Study setting: Incinerator chimney located in a valley
Method: GIS viewshed compared with simple distance
Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.
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Principal finding: Example notes homes <1 km away may not see the stack while homes up to 10 km away may have an unimpeded view; distance alone can mask a chimney's visual effect.

Relevance to the 38-ft tank / skyline issue: Conceptually close to the screening issue: the tall industrial object, not the underlying parcel, determines distant industrial identification.

Important limitation: Not treated as peer-reviewed final evidence; retained as methodological/supporting source.

Primary source: https://www.outdoorrecreation.org.uk/wp-content/uploads/2017/02/CRN-WORKSHOP1994-ENVIRONMENTAL-ECONOMICS.compressed.pdf 3 - General industrial proximity

9. Effects of Location Elements on Home Purchase Prices and Rents in San Francisco Bay Area
Authors: Kara Maria Kockelman
Publication: Transportation Research Record 1606:40-50 (1997) Study setting: San Francisco Bay Area residential values; industrial land use among neighborhood variables Method: Hedonic models controlling for housing structure, accessibility, travel costs and local land-use patterns
Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: After controlling for travel costs, high proximity to industrial land uses and very local commercial activity depresses land and dwelling-unit values, often substantially.

Relevance to the 38-ft tank / skyline issue: California evidence for the upper-bound concept: once a neighborhood is visibly/readily identifiable as industrial, industrial proximity is a negative market attribute.

Important limitation: Does not isolate visual identification from other industrial externalities.

Primary source: https://doi.org/10.3141/1606-06
Additional source: https://www.caee.utexas.edu/prof/kockelman/public_html/homepric.pdf

10. Disentangling property value impacts of environmental contamination from locally undesirable land uses
Authors: Laura O. Taylor; Daniel J. Phaneuf; Xiangping Liu Publication: Journal of Urban Economics 93:85-98 (2016) Study setting: Twin Cities residential sales near contaminated and uncontaminated commercial properties Method: Difference-in-differences and repeat-sales models Reported diminution: About 2.5% near clean commercial properties versus about 8% near contaminated sites in cross-sectional results.

Principal finding: Cross-sectional results: proximity to clean commercial properties reduced neighboring home values about 2.5%, versus about 8% for contaminated sites; after remediation the remaining discount was largely indistinguishable from clean commercial land-use effect.

Relevance to the 38-ft tank / skyline issue: Demonstrates a negative land-use effect even without contamination—the commercial/industrial condition itself can carry a discount.

Important limitation: Commercial properties are broader than industrial and study does not isolate skyline visibility.

Primary source: https://doi.org/10.1016/j.jue.2016.03.004

11. Smelly Local Polluters and Residential Property Values: A Hedonic Analysis of Four Orange County (California) Cities
Authors: Jean-Daniel Saphores; Ismael Aguilar-Benitez
Publication: Estudios Económicos 20(2):197-218 (2005)
Study setting: Four Orange County, California cities; auto shops and polluting plants Method: GIS plus hedonic regression
Reported diminution: Residential price reductions up to 3.4% associated with local air/odor pollution. 961
Principal finding: Statistically significant residential price reductions up to 3.4% associated with local air/odor pollution.

Relevance to the 38-ft tank / skyline issue: Southern California evidence that relatively local industrial activities capitalize into nearby housing prices.

Important limitation: Mechanism is odor/air pollution, not primarily visual; secondary rather than core evidence for the tank argument.

Primary source: https://www.jstor.org/stable/40311503

12. Environmental Health Risks and Housing Values: Evidence from 1,600 Toxic Plant Openings and Closings
Authors: Janet Currie; Lucas Davis; Michael Greenstone; Reed Walker Publication: American Economic Review 105(2):678-709 (2015) Study setting: 1,600 U.S. toxic industrial plant openings/closings Method: Quasi-experimental openings/closings; housing-market data Reported diminution: About an 11% decline in housing values within 0.5 mile following toxic-plant openings.

Principal finding: Plant openings led to about an 11% decline in housing values within 0.5 mile.

Relevance to the 38-ft tank / skyline issue: Useful as an industrial 'fully identified facility' upper-context study, not as a direct estimate of visual tank effects.

Important limitation: Dominant mechanism includes toxic emissions/health risk; should not be used to attribute a visual-only percentage.

Primary source: https://doi.org/10.1257/aer.20121656
Additional source: https://pmc.ncbi.nlm.nih.gov/articles/PMC4847734/

13. Industrial Land Use, Externalities, and Residential Location Authors: James D. Burnell
Publication: Urban Studies 22(5):399-408 (1985)
Study setting: Industrial land use and residential location Method: Empirical analysis distinguishing localized and nonlocalized industrial externalities Reported diminution: No single transferable percentage diminution was reported in the prior workbook summary.

Principal finding: Addresses both localized and nonlocalized externalities associated with industrial land use.

Relevance to the 38-ft tank / skyline issue: Supports examining the geographic footprint created when an otherwise screened industrial use becomes identifiable at a distance.

Important limitation: Not a direct visibility or tank study.

Primary source: https://ideas.repec.org/a/sae/urbstu/v22y1985i5p399-408.html 4 - Contrary / boundary evidence

14. The Effects of Nonresidential Land Uses on the Prices of Adjacent Housing: Some Estimates of Proximity Effects
Authors: David M. Grether; Peter Mieszkowski
Publication: Journal of Urban Economics 8(1):1-15 (1980) Study setting: 16 neighborhood experiments near industry, commercial, high-density housing and highways Method: Hedonic price indices; distance from nonresidential use Reported diminution: Results are mixed rather than uniformly null. In West Haven Industrial (1), the distance variables were jointly significant at the 0.01 level. Table 3 estimates values about 6% higher at the sample mean distance, 9% higher at mean + 1 SD, and 11% higher at mean + 2 SD, relative to the industrial boundary (D = 0). The other two industrial samples did not have jointly significant distance effects.

Principal finding: Across all 16 experiments, the authors found no systematic relationship between nonresidential land use per se and housing prices. However, the industrial results are more informative when separated by statistical significance: one of the three industrial experiments produced a strong, statistically 962
significant proximity gradient, while two did not.

Relevance to the 38-ft tank / skyline issue: The statistically significant West Haven result is directly relevant as evidence that an industrial/residential boundary can produce a localized capitalization effect. The authors describe this site as light industry bordering a middle-class housing development, with some tree buffering.

The paper also expressly identifies traffic and visual externalities as rationales for separating industrial/commercial activity from single-family neighborhoods. This does not isolate tank visibility or an 8- ft height exceedance, but it supports testing whether making industrial equipment perceptible from adjacent residences changes market value.

Statistically significant industrial result
West Haven Industrial (1): The distance terms were jointly significant at p < .01. The fitted distance function implies progressively higher values away from the industrial boundary. Table 3 reports approximately +6% at the mean sample distance, +9% at mean + 1 standard deviation, and +11% at mean + 2 standard deviations, using the boundary (D = 0) as the reference. The authors state that this result is sensible and that the data support treating the West Haven industrial zone as a disamenity.

Industrial results that were not statistically significant but indicated a negative value impact coefficient sign West Haven Industrial (2): The joint distance test was not significant. The fitted coefficients were distance = -0.030 and distance-squared = +0.0023. Those signs describe a curved fitted relationship, but because the distance terms were not jointly significant, they should not be presented as evidence of a measurable industrial discount.

Milford Industrial: The joint distance test was also not significant. The fitted coefficients were distance = -0.084 and distance-squared = +0.0031. Again, the point estimates initially slope in the direction of lower values with greater distance before curvature changes the fitted relationship; statistically, however, the study could not distinguish the distance effect from zero.

Interpretation of significance and coefficient signs
The useful distinction is therefore not “industrial proximity was negative but insignificant” across the study. The more accurate statement is that the three industrial experiments were heterogeneous: one showed a statistically strong adverse proximity effect, while two produced non-significant quadratic distance relationships whose individual coefficient signs should be treated as descriptive point estimates, not demonstrated market effects. This distinction preserves both the affirmative evidence and the contrary/boundary evidence.

Primary source: https://doi.org/10.1016/0094-1190(80)90052-2 Additional source: https://authors.library.caltech.edu/records/bscpz-3xy50 Synthesis of the Prior Analysis
The studies do not support assigning a single percentage diminution to the proposed tanks. They do support several narrower propositions: (1) industrial proximity can be capitalized negatively into residential values; (2) what is actually visible can matter independently of simple distance; (3) the height of a vertical structure can materially alter the viewshed; and (4) measurable effects can be highly localized. Grether and Mieszkowski add an important boundary condition: nonresidential land use per se did not produce a systematic price effect across all 16 experiments, yet one of their three industrial sites showed a statistically significant p < .01 distance gradient, with estimated values roughly 6%-11% higher at increasing distances from the industrial boundary. Their other two industrial samples were not statistically significant.

For the Redondo Beach fact pattern, the economically relevant change is not merely that an industrial use exists nearby. The proposed analytical exposure is the change from an industrial use substantially contained within a common 30-ft development envelope to vertically prominent equipment at roughly 38 ft or higher that may become visible and identifiable from residences where the industrial use otherwise would not be apparent.

The combined literature therefore supports testing a project-specific visibility/proximity effect. 963
PUBLIC COMMENT 09 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Friday, September 25, 2026 at 12:25 PM

SUBJECT
Testimony: Impulse Space Variance Appeal - Impulse
Sworn Testimony is Inconsistent with City Staff
Findings

SUPPORTING MATERIALS INCLUDED
- Memo to File Impulse Variance Findings vs Testimony
- Impulse Space Testimony Analysis Aug Sep 2026
The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
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From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Nick Biro; Zein Obagi Subject: Testimony: Impulse Space Variance Appeal - Impulse Sworn Testimony is Inconsistent with City Staff Findings Date: Friday, September 25, 2026 12:25:19 PM
Attachments: Memo_to_File_Impulse_Variance_Findings_vs_Testimony.pdf Impulse_Space_Testimony_Analysis_Aug_Sep_2026.pdf
CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

This transmittal email and the two attached documents are submitted in their totality as testimony in the Impulse Space variance denial appeal proceeding. Included is my memo to file regarding Impulse representatives' sworn testimony at the Planning Commission and how it is contrary to Redondo Beach Staff claims or non-supportive. It is based on a Q&A I developed using the transcript of the August and September Redondo Beach Planning Commission.

This work was prepared under my direction and reviewed by myself. I adopt it as my own based on the official City meeting recordings.
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MEMORANDUM TO FILE
Re: Impulse Space Height Variance — Resolution Findings Compared with Applicant Testimony Property: 2477 Manhattan Beach Boulevard, Redondo Beach Resolution: Proposed Resolution No. 2026-09-PCR-11
Record: August 20 and September 17, 2026 Planning Commission hearings Purpose. This memo extracts the material variance findings stated in the City's proposed resolution and places next to them the specific applicant testimony that does not agree with, or does not establish, those findings. The testimony quoted below is limited to Impulse Space representatives, with commissioner questions included only where needed to make the applicant's answer intelligible.

1. Finding: the 30-foot height limit would eliminate Impulse's ability to use the property Resolution finding: ―Strict adherence to the zone district’s 30-foot height limit would eliminate the ability of the property owner to use the property for the existing manufacturing facility....‖ Impulse did not testify that denial of the 38-foot variance would eliminate its ability to operate. When directly asked about a compliant alternative, Impulse agreed that smaller tanks were feasible:

Commissioner: ―Okay. So, so it is it is feasible to do it smaller tanks. More smaller tanks.‖ Impulse: ―Yeah.‖
— August hearing, approximately 01:54:53
Later, when asked what a denial would do, Impulse described the effect as “pretty impactful,” but expressly contemplated obtaining many more tanks rather than stating that operations would cease:

Commissioner: ―But have you considered the possibility that you get a thumbs down tonight? What does that do?‖
Impulse: ―Yeah, it’s pretty impactful to our business.‖ … ―Yeah, it’s hard to quantify exactly what that would be. You know, whether whether we could do what Commissioner Boswell said and go get many more tanks....‖
— August hearing, approximately 02:14:06–02:14:59
Record comparison: the applicant's testimony describes a less desirable alternative configuration, not an elimination of the manufacturing use.

2. Finding: the required infrastructure cannot be accommodated at a lesser height Resolution finding: ―the technical requirements of this required infrastructure ... cannot be accommodated at a lesser height without resulting in significantly more frequent deliveries....‖ The first clause is inconsistent with Impulse's direct answer that smaller tanks are feasible:

Commissioner: ―So, so it is it is feasible to do it smaller tanks. More smaller tanks.‖ Impulse: ―Yeah.‖
— August hearing, approximately 01:54:53
Impulse also confirmed that it was already operating with smaller tanks at its existing facility:

Commissioner: ―...how long it takes to fill the smaller tanks, although you’re employing smaller tanks right now in your existing operations.‖
Impulse: ―About the same time.‖
— August hearing, approximately 01:55:46
Record comparison: the testimony supports an operational preference for the larger tanks, but not a finding that the infrastructure itself cannot be accommodated at a lesser height.

3. Finding: lesser-height tanks would result in “significantly more frequent deliveries” 966
Resolution finding: lesser-height infrastructure would result in ―significantly more frequent deliveries.‖
Impulse testified qualitatively that more tanks would mean more truck activity, but it did not quantify the alternative. When asked about the consequences of denial, it stated:

Impulse: ―Yeah, it’s hard to quantify exactly what that would be. You know, whether whether we could do what Commissioner Boswell said and go get many more tanks. Certainly the impact is absolutely parking. It is also impacted the neighborhood. It’s just more more trucks. Um so we could look at that as well, but but yeah, we we’d have to come back and do that impact assessment.‖ — August hearing, approximately 02:14:31–02:14:59
Impulse did provide some logistics information: it said each fill involves a truck; smaller tanks at the existing facility use a smaller truck; and the fill process for those smaller tanks takes about the same time.

Impulse: ―every time you fill a tank, it’s a truck.‖ …
Commissioner: ―Oh, it it takes the same amount of time.‖ Impulse: ―About the same time. The primary time that it takes is ... the time to prep as well as deconfigure.‖
Commissioner: ―So, in fact, it would be a smaller truck that comes in to fill the smaller tanks.‖ Impulse: ―Yeah.‖
— August hearing, approximately 01:55:19–01:56:34
Record comparison: Impulse supports the direction of the claim—more/smaller tanks could mean more truck events—but expressly states that the magnitude had not been quantified and that an impact assessment still needed to be performed. The testimony therefore does not itself establish the Resolution's characterization of the increase as “significantly” more frequent.

4. Finding: additional deliveries have the potential for the “greatest impact” on the adjacent residential neighborhood
Resolution finding: the more frequent deliveries ―have the potential for the greatest impact on the adjacent residential neighborhood south [of] the subject property.‖ Impulse asserted that more tanks and trucks would increase disruption, but its testimony also acknowledged that it had not performed the comparative impact assessment needed to quantify that alternative:

Impulse: ―So the disruption to not only the business but more importantly the neighborhood would actually go up with more tanks.‖
— August hearing, approximately 01:55:19
Impulse: ―it’s hard to quantify exactly what that would be.... It’s just more more trucks. Um so we could look at that as well, but but yeah, we we’d have to come back and do that impact assessment.‖
— August hearing, approximately 02:14:31–02:14:59
Record comparison: the applicant testified to a potential increase in truck-related disruption, but did not present a comparative analysis establishing that this would be the “greatest” neighborhood impact relative to the 38-foot-tank alternative.

5. Finding: the tanks are critical infrastructure whose technical requirements “cannot be significantly altered”
Resolution finding under the special-privilege criterion: ―The adjustment only allows for critical infrastructure with technical requirements that cannot be significantly altered....‖ 967
Impulse described the proposed vertical tanks as standard, pre-engineered equipment rather than equipment custom-designed to a fixed Impulse specification:

Impulse: ―when we order these tanks, these are standard size tanks. You know, we’re not asking the provider to re-engineer something and that’s by design.‖ Commissioner: ―So it is off the shelf.‖
Impulse: ―It is off the shelf.‖
— August hearing, approximately 01:20:13
Impulse: ―they are a standard design.‖ … ―If they are currently built and in stock, then they’ll deliver them.‖
— August hearing, approximately 02:02:00–02:02:33
Record comparison: this testimony explains why Impulse prefers the standard vertical product, but combined with its express acknowledgment that smaller tanks are feasible, it does not establish that the relevant infrastructure requirements cannot be significantly altered.

Conclusion
The central conflict is narrow. The proposed Resolution converts Impulse's preference for four standard 38-foot tanks into findings of necessity: that the 30-foot limit would eliminate use of the manufacturing facility; that the infrastructure cannot be accommodated at a lesser height; and that a compliant alternative would produce significantly more deliveries with the greatest neighborhood impact. Impulse's own testimony does not go that far. It expressly agrees that smaller tanks are feasible, acknowledges existing use of smaller tanks, contemplates obtaining many more tanks if the variance is denied, and states that the resulting impacts are “hard to quantify exactly” and would require an impact assessment.

Source note. Resolution language is from proposed Resolution No. 2026-09-PCR-11. Testimony is from the City YouTube transcripts for the August 20 and September 17, 2026 Planning Commission hearings.

Quoted transcript wording is preserved substantially as transcribed; timestamps are included for verification against the video.
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Impulse Space Testimony Analysis — August/September 2026 Impulse Space Testimony Analysis
Redondo Beach Planning Commission — August and September 2026 Prepared from the two supplied meeting transcripts
Scope and method. Questions 1–7 are answered using only statements made by Impulse Space representatives in the supplied transcripts. Statements by City staff, commissioners, fire personnel, and members of the public are excluded as evidence for those answers, except that a commissioner’s question is quoted when necessary to make an Impulse answer intelligible. Question 8 necessarily uses the procedural transcript surrounding the applicant testimony. No outside sources or assumptions are used. Transcript timestamps are provided so each finding can be checked against the source video/transcript.

Executive Summary
Question Finding Bottom line

1. 38-ft tanks required for
continued operation?
No explicit
assertion.

Impulse argues the 38-ft configuration is preferred/required by safety, technical, operational and regulatory considerations for the expansion, but never says it cannot continue operating without 38-ft tanks. Its August testimony also acknowledges smaller tanks are feasible.

2. Operation with 30-ft/shorter
tanks?
Yes, partially. Impulse acknowledges more smaller tanks are feasible and explains they would mean more tanks/truck fills; smaller tanks at the existing site use a smaller truck and take about the same fill time. It does not provide a complete 30-ft alternative operating plan.

3. Tanks custom designed? No. Impulse describes them as standard-size/standard-design, preengineered equipment and says it is not asking the provider to re-engineer a custom tank.

4. Owned/supplied by gas
provider?
Yes. Impulse states the tanks are ―owned and operated by the gas supplier.‖

5. Traffic impacts from fills? Qualitative only. Impulse gives fill frequency, approximate duration, trucksize/logistics information, and says more smaller tanks would increase truck activity. It provides no quantified traffic-impact analysis or trip-count comparison.

6. LIN/LAR consumption rate? No quantified
rate.

No gallons/week or separate LIN/LAR consumption rate is given. Fill-frequency estimates and telemetry/usage
monitoring are discussed.

7. Neighborhood safety analysis /
dispersion modeling?
No such analysis
identified.

Impulse discusses safety systems, regulatory review, siting and operational safety, but does not testify that it performed neighborhood dispersion modeling, oxygen-deficiency
modeling, or a quantitative off-site risk analysis.

8. Sworn before testimony? August: Yes.

September: not
re-sworn.

The August applicant representatives expressly answered the oath. In September, the Chair raised re-administering the oath and was told they did not have to; the Impulse representatives then testified without a new oath in the transcript.

1. Does Impulse ever assert that the 38-foot tanks are required for continued operation?
Answer: No. The transcripts contain no Impulse statement that continued operation of the company or facility depends on approval of 38-foot tanks.
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Impulse Space Testimony Analysis — August/September 2026 Impulse makes a narrower and materially different claim: the proposed configuration is sized for the expanded facility and is, in its view, the safest and best fit with technical, operational and regulatory requirements. In September it says changing tank size/orientation would compromise those requirements. But it does not say denial of the 38-foot configuration would prevent continued operations. In August, Impulse also agrees that using more smaller tanks is feasible, which undercuts any reading that 38-foot tanks are the only physically possible means of operation.

Key Impulse testimony
“these tanks are engineered and they’re sized for our specific operational needs. That sizing is not the discretion of Impulse.” — August, ~01:12:18
“asking Impulse to make a design-based change … to the tanks would compromise the safety, technical, operational, and regulatory requirements of our business.” — September, ~00:56:27 “So, so it is feasible to do it smaller tanks. More smaller tanks. >> Yeah.” — August, ~01:54:53

2. Does Impulse provide any information about how it would operate with 30-foot or shorter tanks?
Answer: Yes, but only in fragments; it does not present a complete 30-foot-tank operating alternative.

In August, when asked whether smaller tanks/more tanks were feasible, Impulse answered yes. It then explained that more tanks would increase the number of truck connections/fills and that fill preparation/deconfiguration dominates the roughly one-hour process. It said its existing smaller tanks use a smaller truck because of access constraints, while the proposed site can accept larger trucks for the larger tanks. In September it additionally explains why it disfavors horizontal tanks: it says the nitrogen elevation assists flow across the roughly 1,000-foot building and horizontal tanks would require pumps, creating noise. None of this is a detailed design for four/six 30-foot tanks, including capacities, exact fill frequency, footprint, or costs.

Key Impulse testimony
“So, so it is feasible to do it smaller tanks. More smaller tanks. >> Yeah.” — August, ~01:54:53 “we can’t use the same size tanks because every time you fill a tank, it’s a truck.” — August, ~01:55:19 “We also need … a smaller truck that comes in [at the current facility] … With these … we can get bigger trucks into the space to fill these larger tanks.” — August, ~01:56:12–01:56:34 “If we had horizontal tanks, we would need pumps to flow that nitrogen as opposed to letting gravity flow throughout the facility itself. Pumps create noise.” — September, ~01:07:51

3. Does Impulse indicate that the tanks are custom designed? Answer: No. Impulse repeatedly characterizes the proposed tanks as standard or pre-engineered rather than customdesigned for Impulse.

The clearest August testimony is that the tanks are ―standard size tanks‖ and Impulse is ―not asking the provider to reengineer something.‖ Later, Impulse calls them a ―standard design‖ and says availability depends on whether units are already built and in stock. It also says a horizontal version would require a different design and that it would have to ask the company to build one. The testimony therefore distinguishes the proposed tanks from a custom/re-engineered alternative.

Key Impulse testimony
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Impulse Space Testimony Analysis — August/September 2026 “these are standard size tanks. You know, we’re not asking the provider to re-engineer something and that’s by design.” — August, ~01:20:13
“they are a standard design.” — August, ~02:02:00
“If they are currently built and in stock, then they’ll deliver them.” — August, ~02:02:33

4. Does Impulse indicate if the tanks are owned or supplied by the liquefied-gas provider?
Answer: Yes. Impulse states that the tanks are owned and operated by the gas supplier.

This is direct applicant testimony during the August questioning. The same exchange also indicates that standarddesign tanks may be delivered if already built and in stock. The testimony does not identify the supplier by name in the passages reviewed.

Key Impulse testimony
“The tanks are … owned and operated by the gas supplier.” — August, ~02:02:00

5. Does Impulse provide any traffic impacts from required fills of either 38-foot or smaller tanks?
Answer: It provides operational/logistics information, but no quantified traffic-impact analysis.

For the proposed tanks, Impulse estimates roughly one-hour fills, initially about monthly and at full production about weekly, generally mornings to early afternoon. It says the proposed site can accept larger trucks. For smaller tanks, it says fill time is about the same, smaller trucks are used at its existing constrained site, and more tanks would mean more truck events/connections. It also states that the planned truck path would not require employees to move parked cars. However, Impulse provides no traffic study, no trips-per-day/week calculation separating LIN from LAR, no roadway level-of-service analysis, and no quantified comparison of 38-foot versus 30-foot alternatives.

Key Impulse testimony
“initially … it’s probably expected to be once a month for an hour … as we go into full production capacity it’s going to be about once a week.” — August, ~01:16:12
“typically … the filling hours is usually in the mornings to the early afternoon.” — August, ~01:16:42 “every time you fill a tank, it’s a truck.” — August, ~01:55:19 “the disruption to not only the business but more importantly the neighborhood would actually go up with more tanks.” — August, ~01:55:19
“we have planned out the parking lot so that we’re not going to put any people’s cars in the path of the truck.” — August, ~01:59:34

6. Does Impulse provide insight into LIN or LAR consumption rates, such as gallons per week?
Answer: No quantified LIN or LAR consumption rate is provided.

Impulse explains the uses of nitrogen and argon and gives expected fill frequency, but does not state gallons per week, gallons per production unit, separate LIN/LAR draw rates, or projected annual consumption. September testimony says 971
Impulse Space Testimony Analysis — August/September 2026 its telemetry detects changes in quantity and ―excess usage,‖ including a recent nitrogen-use event, but gives no numerical consumption rate.

Key Impulse testimony
“liquid nitrogen … [is] a high cleanliness, high purity substitute for compressed air … liquid argon … is a shielding gas [for welding].” — August, ~01:11:09–01:11:43 “if you see excess usage, even if the tank is 90% full, they’re getting an alarm.” — September, ~01:05:28 “there was a case about three weeks ago … where we saw excess usage … it was a normal operation.” — September, ~01:05:54

7. Does Impulse indicate that it has conducted any neighborhood safety analysis, such as dispersion modeling?
Answer: No. The Impulse testimony does not identify any neighborhood dispersion model, oxygen-deficiency model, quantitative off-site risk assessment, or comparable neighborhood consequence analysis.

Impulse testifies extensively about safety: manufacturer recommendations, venting/leak-before-burst concepts, on-site safety personnel, telemetry, fire/CUPA/Cal-OSHA review, siting constraints, and the safety rationale for its preferred tank configuration. Those are not the same as modeling the off-site consequences of a release into the surrounding residential neighborhood. No Impulse representative states that such neighborhood modeling was performed, and no modeled distance, oxygen concentration contour, release scenario, or consequence radius is presented by Impulse in either transcript.

Key Impulse testimony
“we have our own on-site safety team.” — August, ~01:21:57 “part of my job is the safety and regulatory compliance of really any component, tank, whatever it might be, on our site.” — September, ~00:58:05
“we would move on to the building and permit and plan review, followed by fire code … [and] the LA County CUPA.” — September, ~00:58:05–00:59:12

8. Did the Planning Commission require Impulse representatives to be sworn prior to testimony?
Answer: August: yes. September: the transcript shows no new oath was administered before the continued-hearing testimony.

At the August hearing, the Chair expressly called the applicant forward ―to swear you in,‖ administered a truth oath, and received an affirmative response before Michael Gilway and Jeff DeFazio identified themselves and testified. At the September continued hearing, the Chair raised administering the oath ―again,‖ then asked whether it was necessary; the response in the transcript was ―they don’t have to,‖ followed by ―Yeah, I don’t have to.‖ Jeff DeFazio and Mike McDermott then identified themselves and testified. Thus, as a transcript fact, August testimony was expressly sworn and September testimony was not re-sworn on the record. This report does not determine whether the August oath legally carried over to the continued hearing or whether a new oath was legally required.

Key Impulse testimony
972
Impulse Space Testimony Analysis — August/September 2026 “do you promise to tell the truth, the whole truth, and nothing but the truth? >> Yes, sir.” — August, immediately before Impulse testimony, ~01:06:05
“I’ll ask you to administer the oath again even though I think it’s still continued or do I need to? … they don’t have to. >> Yeah, I don’t have to.” — September, ~00:50:01
Overall Evidentiary Takeaway
The testimony supports a distinction between “preferred/standard configuration” and “necessary to continue operating.” Impulse presents the 38-foot vertical tanks as the standard, safest and operationally preferred configuration for its expansion. At the same time, its August testimony acknowledges that smaller tanks are feasible and describes how their logistics would differ. The record therefore contains operational reasons for preferring the 38-foot tanks, but no Impulse statement that denial of the variance would make continued operation impossible. The record also contains no quantified LIN/LAR consumption rate, no quantified comparative traffic analysis, and no identified neighborhood dispersion or off-site consequence model.

Source Notes
August source: ―Aug2026RBPCMtg_Transcript(2).docx,‖ supplied transcript of the August 2026 Redondo Beach Planning Commission meeting.

September source: ―sep2026RBPCMtg_Transcript(1).docx,‖ supplied transcript of the September 17, 2026 Redondo Beach Planning Commission meeting.

Quoted language follows the automated transcript and may contain transcription errors in names or wording.

Timestamps are the principal locator for verification against the City video. 973
PUBLIC COMMENT 10 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Mark Nelson

ORIGINAL SENT
Friday, September 25, 2026 at 2:20 PM

SUBJECT
Testimony: Impulse Space Variance Appeal - City Staff
and Commissioners statements are Inconsistent with
City Staff Findings

SUPPORTING MATERIALS INCLUDED
- City Staff Focused-Memo to File Impulse Variance Findings vs Record The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
974
From: Mark Nelson (Home Gmail)
To: CityClerk; Mike Witzansky; Joy Ford; Sean Scully; Scott Behrendt; Andrew Winje; Marc Wiener; Gale S. Hazeltine; Jason Conroy; Wayne Craig; Douglas Boswell; Roger K. Light; Robert Gaddis; Julie Young; Garth Meyer; Brad Waller; Chadwick B. Castle; Paige Kaluderovic; Nick Biro; Zein Obagi Subject: Testimony: Impulse Space Variance Appeal - City Staff and Commissioners statements are Inconsistent with City Staff Findings
Date: Friday, September 25, 2026 2:20:08 PM
Attachments: City_Staff_Focused-Impulse_City_Record_Analysis_Aug_Sep_2026.pdf City_Staff_Focused-Memo_to_File_Impulse_Variance_Findings_vs_Record.pdf CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

This transmittal email and the two attached documents are submitted in their totality as testimony in the Impulse Space variance denial appeal proceeding. Included is my memo to file regarding statements of City Staff and Commissioners at the Planning Commission and how those statements are contrary to claims and findings made by the City in proposed Resolution 2026-09-PCR-11. The memo is based on a Q&A I developed using the transcript of the August and September Redondo Beach Planning Commission extracting statements of City Staff and Commissioners are relevant.

This work was prepared under my direction and reviewed by myself. I adopt it as my own based on the official City meeting recordings.
975
Memo to File — Impulse Space Variance Findings vs. Hearing Record

MEMORANDUM TO FILE
Re: Impulse Space Height Variance — Proposed Resolution Findings Compared with Hearing Record Property: 2477 Manhattan Beach Boulevard, Redondo Beach Resolution: Proposed Resolution No. 2026-09-PCR-11
Record: August 20 and September 17, 2026 Planning Commission hearings Purpose. This memo extracts the material factual findings in the City's proposed variance resolution and places immediately below them the specific hearing Q&A or testimony that conflicts with, narrows, or fails to establish the finding. The comparison uses the City's proposed resolution and the August and September Planning Commission hearing record.

1. Finding that the 30-foot limit would eliminate use of the manufacturing facility Resolution finding: “Strict adherence to the zone district’s 30-foot height limit would eliminate the ability of the property owner to use the property for the existing manufacturing facility....” City Staff: ―If it was 30 feet, no. And that was something we did explore with the applicant and … this size tank really met their needs and they felt like it was worthwhile to apply for the variance for this.‖ — August, approx. 01:43:20
Commissioner: ―So basically … this extra eight feet is requiring this additional process, but if they added two more tanks, we would have never heard it probably if there were 30 ft or smaller.‖ — August, approx. 01:43:51–01:44:15
City Staff: ―That’s correct.‖
— August, approx. 01:44:15
Commissioner: ―Okay. So, so it is it is feasible to do it smaller tanks. More smaller tanks.‖ — August, approx. 01:54:53
Impulse: ―Yeah.‖
— August, approx. 01:54:53
Record comparison: The resolution states elimination of the manufacturing use. Staff instead says the 38-foot tanks “really met their needs” and confirms that a 30-foot-or-smaller configuration could avoid the variance.

Impulse separately agrees that smaller/more tanks are feasible. The hearing record therefore describes an alternative configuration, not elimination of the manufacturing use.

2. Finding that the infrastructure cannot be accommodated at a lesser height Resolution finding: “the technical requirements of this required infrastructure in support of this aerospace manufacturing operation (permitted use) cannot be accommodated at a lesser height....” Commissioner: ―Why not six shorter tanks and get it under that 30 foot? … can you buy off-the-shelf tanks … that are 30 feet or shorter and just have more tanks?‖
— August, approx. 01:44:45–01:45:27
City Staff: ―I would defer to the applicant on that….‖
— August, approx. 01:45:27
Commissioner: ―So, so it is it is feasible to do it smaller tanks. More smaller tanks.‖ — August, approx. 01:54:53
Impulse: ―Yeah.‖
— August, approx. 01:54:53
976
Memo to File — Impulse Space Variance Findings vs. Hearing Record Record comparison: The resolution uses the categorical phrase “cannot be accommodated at a lesser height.” City staff does not establish that proposition when directly asked about shorter tanks; it defers to the applicant.

The applicant then expressly agrees that smaller tanks are feasible.

3. Finding that lesser-height infrastructure would cause “significantly more frequent deliveries” Resolution finding: “[The infrastructure] cannot be accommodated at a lesser height without resulting in significantly more frequent deliveries....”
City Staff: The larger size and number of tanks ―reduces the overall … number of times that the tanks have to be refilled.‖
— September, approx. 00:47:06–00:47:43
Impulse: ―Yeah, it’s hard to quantify exactly what that would be. You know, whether whether we could do what Commissioner Boswell said and go get many more tanks....‖ — August, approx. 02:14:06–02:14:59
Impulse: ―we’d have to come back and do that impact assessment.‖ — August, approx. 02:14:06–02:14:59
Record comparison: The record supports the qualitative proposition that smaller tanks could require more refill activity. It does not establish the resolution's modifier “significantly.” No comparative calculation of tank capacity, gas consumption, tanker capacity, deliveries per month/year, or truck trips is identified; Impulse says the consequence is “hard to quantify exactly” and that an impact assessment would still have to be done.

4. Finding that additional deliveries have the potential for the “greatest impact” on the adjacent residential neighborhood
Resolution finding: Shorter infrastructure would result in deliveries “which have the potential for the greatest impact on the adjacent residential neighborhood....”
City Staff: Fewer refills reduce ―the potential impact on the adjacent residences.‖ — September, approx. 00:47:06–00:47:43
Impulse: ―it’s hard to quantify exactly what that would be.‖ — August, approx. 02:14:06–02:14:59
Impulse: ―we’d have to come back and do that impact assessment.‖ — August, approx. 02:14:06–02:14:59
Record comparison: Staff identifies a potential impact from refill events, but the record cited here contains no comparative analysis establishing that deliveries are the “greatest” neighborhood impact. No comparison is identified against visual effects, visibility of tanks above the 30-foot limit, property-value effects, traffic, noise, vibration, parking, or other neighborhood effects.

5. Finding based on privileges enjoyed by other property under the applicable zoning comparison Resolution finding: The required variance criterion refers to special circumstances such that strict application deprives the property of “privileges enjoyed by other property in the vicinity and under identical zone designation.” The resolution then justifies relief by referring to nearby properties with a “similar zoning designation” and surrounding industrial properties permitted at heights over 100 feet.

City Staff: The subject site is IC-1 with a 30-foot maximum height; the area immediately south across Manhattan Beach Boulevard is R-1.
— August, approx. 00:35:22–00:36:28
City Staff: Adjacent zones ―allow a height up to 110 ft‖ and have ―the exact same list of permitted uses‖ while the subject property has a 30-foot height limit.
— September, approx. 00:47:43–00:48:23
977
Memo to File — Impulse Space Variance Findings vs. Hearing Record Record comparison: The stated criterion says “identical zone designation.” Staff's oral justification relies substantially on adjacent properties with a different height entitlement — up to 110 feet — and describes the relevant zoning as the “same or similar.” The two-hearing record does not identify another IC-1 property with the same 30-foot limit that has been granted the requested height privilege.

6. Finding that the variance does not constitute a special privilege Resolution finding: “The variance does not constitute a special privilege....” The resolution states that the adjustment allows “critical infrastructure with technical requirements that cannot be significantly altered” without granting development rights unavailable to similarly situated properties.

City Staff: ―If it was 30 feet, no. And that was something we did explore with the applicant and … this size tank really met their needs....‖
— August, approx. 01:43:20
Commissioner: If additional tanks were ―30 ft or smaller,‖ the matter likely would not have come before the Commission.
— August, approx. 01:43:51–01:44:15
City Staff: ―That’s correct.‖
— August, approx. 01:44:15
Record comparison: The record establishes that the requested eight feet is a development right the property does not presently possess and that compliant tanks would avoid the variance. The reviewed City-side hearing record does not identify another IC-1 height variance or an identical-zone property possessing the same privilege.

7. Finding that the tanks are “critical infrastructure” whose technical requirements cannot be significantly altered
Resolution finding: “The adjustment only allows for critical infrastructure with technical requirements that cannot be significantly altered....”
City Staff: Staff describes 38 feet as ―a standard tank size and height‖ and says a custom size ―would actually be a little bit more risky.‖
— September, approx. 00:46:25–00:47:06
City Staff: The 38-foot size ―really met their needs.‖
— August, approx. 01:43:20
Commissioner: ―So, so it is it is feasible to do it smaller tanks. More smaller tanks.‖ — August, approx. 01:54:53
Impulse: ―Yeah.‖
— August, approx. 01:54:53
Record comparison: The oral City record does not define “critical infrastructure.” Staff describes the proposed tanks as standard equipment and as meeting Impulse's needs. The applicant expressly acknowledges a smallertank alternative. Those statements do not establish the resolution's categorical proposition that the technical requirements “cannot be significantly altered.”
Bottom Line
The principal discrepancy is between the categorical language of the proposed resolution and the more limited hearing record. The resolution states that enforcing the 30-foot limit would eliminate the manufacturing use, that the infrastructure cannot be accommodated at a lesser height, that a compliant alternative would produce significantly more deliveries with the greatest neighborhood impact, and that the requested height is critical infrastructure whose technical requirements cannot be significantly altered. The hearing record instead establishes that 30-foot-or-smaller tanks were considered, that such a configuration could avoid the variance, 978
Memo to File — Impulse Space Variance Findings vs. Hearing Record that smaller/more tanks are feasible, and that the delivery consequences had not been quantitatively established. Staff's stated basis also relies on nearby properties with materially greater height entitlements rather than an identified IC-1 comparator with the same 30-foot limit.

Sources
Proposed Resolution No. 2026-09-PCR-11, 2477 Manhattan Beach Boulevard; August 20, 2026 and September 17, 2026 Redondo Beach Planning Commission transcript extracts from the City YouTube meetings.

Timestamps are approximate.
979
PUBLIC COMMENT 11 OCTOBER CITY COUNCIL APPEAL

ORIGINAL SENDER
Alicia Evans

ORIGINAL SENT
Tuesday, September 29, 2026 at 7:00 PM

SUBJECT
Re: PUBLIC COMMENT - THE CITY MUST DENY THE
IMPULSE SPACE 38-FOOT HEIGHT VARIANCE
The following pages contain the comment as received, followed by any supporting materials.

Non-government email addresses and personal phone numbers have been permanently redacted.
980
From: alicia evans
To: Sean Scully; Joy Ford; CityClerk
Subject: Re: PUBLIC COMMENT - THE CITY MUST DENY THE IMPULSE SPACE 38-FOOT HEIGHT VARIANCE Date: Tuesday, September 29, 2026 7:00:12 PM
Some people who received this message don't often get email from Learn why this is important
CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.

Hello All,
I want to make sure my voice is heard-I oppose any type of variance. I completely oppose the variance for Impulse Space. In addition, more test and compliance is needed! Why are they getting different treatment vs other companies and residents? This isn’t right & you know it!
Regards,
Alicia Evans
Sent from my iPhone
On Sep 20, 2026, at 8:42 AM, alicia evans wrote:

City Council, Planning Commissioners, City Attorney
loppose the Impulse Space variance for 38-foot tanks.

The City's proposed Resolution 2026-09-PCR-11 required specific findings to approve the variance.

The facts in the public record do not support those findings.

1. The Resolution said the 30-foot limit would prevent Impulse from using the property for its manufacturing facility. That directly contradicts Impulse Space's sworn testimony.

2. The Resolution said the required infrastructure
"cannot be accommodated at a lesser height."
The facts directly contradict that finding.

3. The Resolution said shorter tanks would cause
"significantly more frequent deliveries." No quantitative analysis was provided to support that finding.

1. The Resolution said additional deliveries could have the "greatest impact" on the residential neighborhood. No comparative neighborhood-impact study supported that finding.

2. The Resolution required comparison with properties under an "identical zone designation." Staff instead relied on properties with different zoning and much greater height limits.

1. The Resolution treated similar industrial uses as justification for similar development rights.

The zoning facts show otherwise.

2. The Resolution said the variance would not grant Impulse a "special privilege." The facts do 981
not establish that finding.

3. The Resolution did not establish that the additional eight feet would have no impact on the residential neighborhood. No analysis supported such a conclusion.

4. The Resolution proposed approval before some neighborhood impacts had even been measured. The record for granting a variance is incomplete and cannot be used to support a variance.

The conclusion is simple.

The City's proposed Resolution required findings to approve the Impulse variance. The public record does not support several of those findings. Some findings are contradicted by Impulses own sworn testimony. Other findings were made without the studies or calculations needed to support them. And some findings rely on development rights belonging to differently zoned properties.

The Planning Commission rejected this approval
Resolution 4-3. Those unsupported findings should not now be reused as facts.

Based on the City's own proposed Resolution and the evidence in the public record, the Impulse Space request for 38-foot tanks does not meet the requirements stated for approval of the variance.

Sincerely,
Alicia Evans
Sent from my iPhone
982
Administrative
Report
N.1., File # 26-1170 Meeting Date: 10/6/2026
To: MAYOR AND CITY COUNCIL
From: EUGENE SOLOMON, CITY TREASURER
TITLE
DISCUSSION AND POSSIBLE ACTION REGARDING THE CITY’S INVESTMENT POLICY APPROVE THE CITY’S STATEMENT OF INVESTMENT POLICY 2026, AS AMENDED, AND THE

ANNUAL RENEWAL OF THE DELEGATION OF INVESTMENT AUTHORITY TO THE CITY

TREASURER

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 City Council reviews and approves the City’s Statement of Investment Policy annually.

Additionally, 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. While establishing an investment policy is not required, it is a best practice common in public funds investing to maintain an investment policy and complete an annual review and update.

This item provides the City Council the opportunity to approve the City’s Statement of Investment Policy, as amended, and also provide the annual renewal of the delegation of investment authority to the City Treasurer.

BACKGROUND
The 2026 updates to the City’s Investment Policy at a high level are intended to achieve:
· Updates that allow the Investment Policy to define Permitted Investments to manage proceeds of the Measure FP Bond Issue
· Incorporation of updates to the California Government Code in force as of January 1, 2026 · Modernization and updates to authorized investment language to better align with the California Government Code
These edits should bring additional clarity and improve understanding of the document for readers and City practitioners. The following revisions are organized by section and subsection and are included in the attached Statement of Investment Policy Fiscal Year 2026:

1. Introduction and Objective. The marked-up language was moved from another

Page 1 of 5 ends

983
N.1., File # 26-1170 Meeting Date: 10/6/2026

1. Introduction and Objective. The marked-up language was moved from another section for organizational purposes.

5. Policy Statement. The revision to (c) middle bullet is intended to better describe the reasons and situations in which the City would conduct a security swap.

6. Scope of the Investment Policy. Edits here are to clarify the applicability of the Investment Policy to the management of bond proceeds and retirement funds held in a trust.

7. Objectives. Generally, edits in this section clean up language and limit big picture objectives to those prescribed by California Government Code Section 53600.5.

A. Safety of Principal. 2. Market Risk. We changed the method of measuring the length of the portfolio to duration. Duration is a more technically accurate representation of the time when the City will recoup its investment dollars.

B. Liquidity. Incorporated references to additional liquidity vehicles and merged the maturity subsection with liquidity as they are related issues.

C. Yield/Return. Changed the title of subsection to align with Code objectives. Removed benchmark language to increase flexibility to meet the City’s needs while still prioritizing safety and liquidity.

F. Timing of Maturities and Maximum Maturities. Removed as this topic is better addressed elsewhere in the Policy.

14. Authorized Investments. The opening of this section provides general guidance that applies broadly to all or multiple of the authorized investment types including the City’s ability to:
· Take special City Council action to approve investments longer than 5 years · Apply percentage limits and credit minimums at the time of purchase · Describe how the City Treasurer will address subsequent changes of allocation percentages or credit rating that have fallen below the minimum subsequent to purchase
o Removed language requiring a sale and provides the City Treasurer discretion to avoid unnecessarily selling at a loss
· Moved all 5% issuer limitations on credit sector investments to the opening section to limit corporate issuer exposure regardless of investment type B. United States Agency Obligations. Aligned language with Code and added a 20% limitation on callable agencies.

C. Banker’s Acceptances. Updated the credit requirements to refer to an nationally registered statistical rating organization (NRSRO).

E. Negotiable Certificates of Deposit. Updated language to align with Code and changed the credit quality focus from FDIC insurance to credit ratings as Negotiable CDs should be treated like corporate notes in institutional investment portfolios whereas FDIC insured CDs, while commonly used by public funds investors, are generally considered a retail investment product.

F. Commercial Paper. Updated language to align with Code’s description and credit

Page 2 of 5 ends

984
N.1., File # 26-1170 Meeting Date: 10/6/2026
requirements and the new longer maximum maturity of 397 days.

G. Local Agency Investment Fund. Clarified the $75 million limit is set by the Treasurer’s office rather than state law.

H. Medium-Term Notes. Updated credit requirement language. Language regarding the handling of declining credit now a general statement applying to all credit types in the opening paragraphs of this Authorized Investments section.

I. Money Market Funds. Aligned the language and limitations on this category with Code.

J. Deposit Placement Services. Aligned the language with Code. Removed reference to CDs as Code now allows other types of deposits to be places with these services. The requirements are fairly in depth so the Policy references the City will comply with the governing section of Code, 53601.8, rather than including all requirements.

K. Supranationals. Updated the rating criteria to align with Code.

L. Authorized yet Currently Unutilized Investments. Clarified that the City will not purchase private label mortgage pass through securities and added Obligations of a Public Bank as that is another investment authorized by Code Section 53601, but not intended to be used by the City at this time.

O. Asset-Backed Securities. Added this permitted investment sector, which are high credit quality while offering additional yield over government securities.

P. Summary of Maximum Percentage Limitations of Investments, by Investment Type.

Updates to the table are to reflect the edits to the subsections for each investment category and to remove unnecessary text for easier reading.

Q. Investment of Bond Proceeds. In anticipation of the upcoming Measure FP bond issuance, the City Treasurer needs to include permissions in the Policy so the proceeds of the debt issuance may be appropriately invested to match the draw schedule. This section relieves the City of limitations on liquidity vehicles since as spending ramps up the City may find it needs to have more than 20% of the proceeds in a local government investment pool (LGIP) or money market fund to make cash appropriately available.

There is also permission to utilize investment contracts, which are commonly used for investing bond proceeds, but are not permitted for operating funds under Code. Lastly and solely for the investment of Debt Reserve Funds, which may have longer time horizons, we have allowed for longer maturity investments so that we may again invest assets in line with the liability.

15. Unauthorized Investments. Added the exception for U.S. government securities for securities resulting in zero interest accrual if held to maturity permitted by Code. This protects the City’s ability to invest in high-quality securities in zero and negative rate environments, during which times leaving funds in cash may not be a better alternative to staying invested.

16. Portfolio Management Activity. Removed A. Active Portfolio Management as the City allows for security swaps, but generally takes a buy and hold approach.

C. Competitive Bidding. Edited to limit language directly to competitive bidding and either removed unnecessary or repetitive language or moves it to more appropriate sections other concepts such as broker/dealer due diligence, reporting, using an investment advisor, and other general information. We have increased the number of required bids from two to three to promote best execution.

Page 3 of 5 ends

985
N.1., File # 26-1170 Meeting Date: 10/6/2026

17. Collateralization. Updated to be flexible in the event the amount of FDIC insurance changes again in the future.

18. Registered Investment Advisor. Edited to focus language on the City’s requirements for investment advisors rather than providing general background information on investment advisors.

19. Authorized Financial Dealers and Institutions. Updated to emphasize the City’s maintenance of an Approved Broker/Dealer List and Other Financial Institutions given the City’s upcoming need to invest the Measure FP bond proceeds. Also, clarifying that for funds managed by an advisor, the advisors list of broker/dealers should be the one considered as it is a part of the scope of work they do for the City.

20. Reporting. Added that monthly reporting will include a compliance statement. Reports already include this, but we are adding the requirement to the Policy. Cleaned up and removed repetitive language from the last paragraph.

22. Annual Policy Review and Adoption. Clarified the language regarding certification so the City remains in compliance regardless of which organization the City chooses to complete the certification.

EXHIBIT B. GLOSSARY OF TERMS. Various formatting corrections, removed old or unnecessary terms, updated CAFR to ACFR, and clarifying edits.

Delegation of Investment Authority
California Government Code Section 53607 requires annual renewal of the Treasurer’s investment authority.

Staff recommends the approval of the updates to the City’s Statement of Investment Policy, as amended, and also provide the annual renewal of the delegation of investment authority to the City Treasurer.

COORDINATION
The City's Statement of Investment Policy, as amended, 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 amended Investment Policy. The work required to update the policy I included in the FY 2026-27 Adopted Budget for the City Treasurer’s Department.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Statement of Investment Policy Fiscal Year 2026
o Exhibit A - Draft City of Redondo Beach Statement of Investment Policy 2026 o Exhibit B - Registered investment advisor and list of qualified brokers from which the City may

Page 4 of 5 ends

986
N.1., File # 26-1170 Meeting Date: 10/6/2026
purchase investments
o Exhibit C - Investment Procedures Manual
· Annual Update: Investment Policy Presentation

Page 5 of 5 ends

987
City of Redondo Beach Investment Policy Fiscal Year 2026 1

CITY OF REDONDO BEACH,

CALIFORNIA
STATEMENT OF INVESTMENT POLICY FISCAL YEAR 2026

988
City of Redondo Beach Investment Policy Fiscal Year 2026 2 Table of Contents
Page

1. Introduction and Overview .................................................................................................................. 1

2. Governing Authority ............................................................................................................................. 1

3. Delegation of Authority and Investment Responsibility ...................................................................... 1

4. Budget and Finance Commission ......................................................................................................... 1

5. Policy Statement .................................................................................................................................. 1

6. Scope of the Investment Policy ............................................................................................................ 2

7. Objectives ............................................................................................................................................. 3

8. Standard of Prudence ........................................................................................................................... 4

9. Ethics and Conflicts of Interest ............................................................................................................. 4

10. Limitation of Liability ............................................................................................................................ 4

11. Investment Procedures Manual ........................................................................................................... 5

12. Internal Investment Controls ............................................................................................................... 5

13. Safekeeping and Custody of Securities ................................................................................................ 5

14. Authorized Investments ....................................................................................................................... 5

15. Unauthorized Investments ................................................................................................................. 10

16. Portfolio Management Activity .......................................................................................................... 11

17. Collateralization ................................................................................................................................. 11

18. Registered Investment Advisor Service .............................................................................................. 11

19. Authorized Financial Dealers and Institutions ................................................................................... 12

20. Reporting ............................................................................................................................................ 13

21. Ongoing Training and Education ........................................................................................................ 13

22. Annual Policy Review and Adoption .................................................................................................. 14 Exhibit A: Approved List of Broker/Dealers and Other Financial Institutions..………….. 15 Exhibit B: Glossary of Terms……………………………………………………………………… 16 Exhibit C: Investment Procedures Manual……………………………………………………… 20 989
City of Redondo Beach Investment Policy Fiscal Year 2026 1

1. Introduction and Overview
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 71,000.

The City’s primary investment philosophy is to match investment maturities with expected cash outflows.

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

3. Delegation of Authority and Investment Responsibility 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 advisory capacity with respect to 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 review and advisory 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 review role by reviewing the City Treasurer’s management of the City’s Pool and the City Treasurer’s reported 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 marketaverage 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:

A. To assure compliance with all Federal, State and local laws governing the investment of monies under the control of the City Treasurer.
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City of Redondo Beach Investment Policy Fiscal Year 2026 2 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 to improve the credit quality or yield, align the portfolio’s duration with its target, and bring the portfolio into compliance. • 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:
• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Project Funds
• Enterprise Funds
• Internal Service Funds
• Fiduciary-Agency Funds
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City of Redondo Beach Investment Policy Fiscal Year 2026 3 • Any new funds created by the City Council, unless specifically exempted All debt issue proceeds will be invested in accordance with the associated governing bond documents, 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 all investment requirements of the City’s Investment Policy and the associated bond documents. Where the Investment Policy and bond documents contradict, the bond documents’ requirements will be followed.

Excluded from the scope of this Investment Policy are investments related to funds held in a separate retirement trust, which will have its own investment policy.

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 The risk of loss due to failure of an issuer of a security to repay their obligations shall be mitigated by investing in only high-quality 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 duration of the City's Pool to no greater than 2.5 years.

B. Liquidity
Liquidity is the second most important investment objective of the City of Redondo Beach. It is important that investments have active secondary markets, meaning securities may be 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 twenty-five percent (25%) of the overall investment Pool’s investments will be maintained in liquid investments in (a) the State Local Agency Investment Fund (LAIF) or other permitted local government investment pool, (b) allowable money market mutual funds as set forth in Section

14.I, (c) securities with a remaining maturity of one year or less, and/or (d) a combination.

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%
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City of Redondo Beach Investment Policy Fiscal Year 2026 4 3 years to 5 years Maximum of 50%
Over 5 years City Council Authorization Required
C. Yield/Return
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.

8. 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".

9. 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.

10. Limitation of Liability
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.

Prior to investment, the City Treasurer or designee shall complete an investigation of the pool/fund.
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City of Redondo Beach Investment Policy Fiscal Year 2026 5

11. 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 22 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 for their review.

12. Internal Investment 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.

13. 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.

14. Authorized Investments
The City shall not enter into any investment transaction that might impair public confidence in the Redondo Beach City government. The investment of City funds is governed by the California Government Code, Sections 53600 et seq. Except as otherwise provided herein, an investment shall not have a term or remaining maturity in excess of five years, measured from the settlement date to final maturity, unless the City Council has given express authorization no less than three months prior to investment, in accordance with California Government Code Section 53601.

Sector and issuer percentage limitations as well as credit rating requirements apply at the time of purchase. Subsequent movements of the percentage of sectors and issuers and credit ratings do not constitute compliance violations. However, the City Treasurer may consider rebalancing the portfolio to bring the portfolio back into alignment with these limitations to manage any undue investment risk. In the event that any investment experiences a credit rating downgrade to a level below the City's required credit rating, the City Treasurer will 994
City of Redondo Beach Investment Policy Fiscal Year 2026 6 initiate a thorough review of the credit quality of the downgraded investment to determine the prudency of selling the note prior to maturity.

No more than 5% of the City’s Pool may be invested in a single issuer regardless of investment type; this shall apply to bankers’ acceptances, negotiable CDs, commercial paper, mediumterm notes, and asset-backed securities.

Within the context of these limitations, the following investments are authorized, as further limited herein.

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. There is no percentage limitation of the Pool that can be invested in this category.

B. United States Agency Obligations No Limit
Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises. There is no percentage limitation of the Pool that can be invested in this category; although, no more than 40% of the Pool shall be invested with any one issuer and no more than 20% may be invested in callable investments.

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 40% of the Pool. Only those banker's acceptances eligible for purchase by the Federal Reserve System meet eligibility requirements for investment by the pool. Eligible bankers’ acceptances shall be rated in the top two rating categories by a nationally recognized statistical rating organization (NRSRO).

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.

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 995
City of Redondo Beach Investment Policy Fiscal Year 2026 7 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, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally licensed or statelicensed branch of a foreign bank. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the moneys are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or a person with investment decision-making authority in the administrative office manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. There is a 30% limit of the Pool that can be invested in this category. Eligible negotiable CDs shall be rated in a rating category of “A” or better by a NRSRO unless the principal and interest of the CD are covered by FDIC insurance.

F. Commercial Paper Maximum of 25%
Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The issuing entity shall meet all of the following conditions in either paragraph (1) or (2):
(1) Entity must meet the following criteria:
a. Organized and operating in the United States as a general corporation. b. Have total assets in excess of $500,000,000
c. Any debt other than commercial paper must be rated in a rating category of “A” or better by a NRSRO.
(2) Entity must meet the following criteria:
a. Organized within the U.S. as a special purpose corporation, trust, or limited liability company.
b. Has program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond c. Has commercial paper that is rated “A-1”, its equivalent, or better by a NRSRO
There is a 25% percent limit of the Pool that may be invested in this category.

Eligible commercial paper shall have a maturity of 397 days or less.

G. Local Agency Investment Fund Maximum of $75 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 $75 million maximum per account permitted by the State Treasurer.

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City of Redondo Beach Investment Policy Fiscal Year 2026 8 H. Medium-Term Notes Maximum of 30%
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. Eligible medium-term notes shall be rated in a rating category of “A”, its equivalent or better, by a NRSRO.

There is a 30% limit of the Pool that may be invested in medium-term notes.

I. Money Market 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.). Eligible money market funds shall have 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 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 funds.

J. Deposit Placement Service Maximum of 30%
The City may invest with a commercial bank, savings bank, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The City will adhere to the requirements of California Government Code Sections 53601.8. There is a 30% limit of the Pool that may be invested in deposit placement services.

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 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 in a rating category of “AA” or better by a NRSRO. There is a 15% limit of the Pool that may be invested in this category. No more than 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; private-label Mortgage Pass through Securities; Obligations of a Public Bank; 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 997
City of Redondo Beach Investment Policy Fiscal Year 2026 9 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 of 20%
Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (r) of the California Government Code Section 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(1) The adviser is registered or exempt from registration with the United States Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

No more than 20 percent of the City’s funds may be invested in JPAs.

O. Asset-Backed Securities (ABS) Maximum of 20%
A mortgage passthrough security, collateralized mortgage obligation, mortgagebacked or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond. Eligible asset-backed securities shall be rated “AAA”, or its equivalent, by a NRSRO. There is a 20% limit of the Pool that may be invested in this category.

P. 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
Sector %
Maximum
Issuer %
Maximum
Maturity
CA Government
Code Section
U.S. Treasury Obligations No limit No limit 5 years §53601(b) U.S. Agency Obligations No limit 40% 5 years § 53601 (f) Bankers Acceptances 40% 5% 180 days § 53601 (g)
Time Deposits No limit No limit 5 years § 53630, et seq. 998
City of Redondo Beach Investment Policy Fiscal Year 2026 10 Investment Type
Maximum
Sector %
Maximum
Issuer %
Maximum
Maturity
CA Government
Code Section
Negotiable Certificates of
Deposit 30% 5% 5 years § § 53601 (i), 53638
Commercial Paper 25% 5% 397 days § 53601 (h)
Local Agency Investment Fund $75 million
per Account
$75 million
per Account N/A § 16429.1
Medium Term Notes 30% 5% 5 years § 53601 (k)
Money Market Funds 20% 20% N/A § 53601 (l)
Deposit Placement Service 30% 30% 5 years § § 53601.8, 53635.8 Supranationals 15% 5% 5 years § 53601 (q)
Collateralized Bank Deposits No Limit No Limit N/A § 53630, et seq.

Joint Powers Authority 20% 20% NA § 53601 (p)
Asset-Backed Securities 20% 5% 5 years § 53601 (o)
Q. Investment of Bond Proceeds
The City Treasurer is responsible for the investment of the City’s proceeds from the issuance of debt. This Investment Policy shall be the governing document determining the Permitted Investments for the City’s bond issues unless otherwise stated in the official bond documents.

For the purposes of investing bond proceeds, the City relieves any limitations on the percent of funds that may be invested in LAIF (up to the State’s limits), shares issued by a JPA, and money market funds. The City may utilize investment contracts solely for the purpose of investing bond proceeds and with counterparties that must have a rating of “A” or better by an NRSRO.

For the investment of Reserve Funds, the City relieves any limitations on the maturity of Authorized Investments in this section of the Policy so Reserve Funds may be more appropriately invested relative to the liability.

R. 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.

15. 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 except as permitted by California Government Code section 53601.6, are prohibited from use in the Pool. 999
City of Redondo Beach Investment Policy Fiscal Year 2026 11

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

A. 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.

B. 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.

C. Competitive Bidding To ensure that investments are bought and sold in the most cost effective and efficient manner, the City Treasurer requires competitive bidding. Transactions conducted by the City are only permitted with direct issuers and the City’s Authorized List of Broker-Dealers.

Competitive bidding on individual investment transactions is required on all transactions except those pertaining to “new issue” securities, which are purchased when they are originally brought to market (primary market).

Investments purchased in the secondary market, subsequent to issuance, and the sale of all securities shall require three bids/offers. Where bid/offers may be unavailable, indications for comparable securities should be noted.

17. Collateralization
Investments in time certificates of deposit shall be fully insured up to the current amount by the Federal Deposit Insurance Corporation. Investments in time certificates of deposit in excess of the FDIC insurance shall be properly collateralized. Section 53652 of the California Government Code requires that the depository pledge securities with a market value of at least 10% in excess of the City's deposit as collateral in government securities, and 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 the requirements of the California Government Code.

18. Registered Investment Advisor Service
The City may choose to utilize the services of a Registered Investment Advisor. 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. The Investment Advisor shall adhere to all requirements of this Investment Policy and the California Government Code. 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. 1000
City of Redondo Beach Investment Policy Fiscal Year 2026 12 The City shall only deal with SEC registered investment advisors with $1 billion or more of funds under management.

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.

19. 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 City’s purchase and sale 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 City’s Approved List of Broker-Dealers to include “qualified regional” dealers in addition to primary dealers.

A “qualified regional” dealer must demonstrate the following requirements:
x 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.
x 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 shall have a minimum credit rating of A or better by an NRSRO.
x 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’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 an Approved List of Authorized Broker/Dealers and other financial institutions approved for the conduct of investment transactions. All financial institutions and brokers/dealers who desire to become qualified 1001
City of Redondo Beach Investment Policy Fiscal Year 2026 13 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.
• 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 to the City Council as part of the annual review of the Investment Policy. If the City utilizes an investment advisor, the City may request the advisor’s list of authorized broker/dealers and present that list to City Council.

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

20. Reporting
The City Treasurer shall render a monthly report to the City Council including 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, a statement of compliance or an explanation for noncompliance, the ability of the City to meet the expenditure requirements for the next six months or provide an 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 Treasurer shall review the portfolio at least quarterly to identify any securities that may be out of compliance. The Treasurer shall report any issues of non-compliance and the recommended remedy to the Budget and Finance Commission on a quarterly basis.

21. 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.
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City of Redondo Beach Investment Policy Fiscal Year 2026 14

22. 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 needs of the City. As part of the City Council's annual review of the City's Statement of Investment Policy, the City Council shall consider and 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 standards of legal compliance and reporting excellence, the City Treasurer shall submit the Statement of Investment Policy to appropriate industry organizations such as the California Municipal Treasurer’s Association, the Association of Public Treasurers of the United States and Canada, or the Governmental Investment Officers Association for review and recertification every 3-5 years.

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City of Redondo Beach Investment Policy Fiscal Year 2026 15

EXHIBIT A

AUTHORIZED BROKER/DEALERS AND OTHER FINANCIAL INSTITUTIONS

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 for its operating funds portfolio.

City Investment Policy Annual Review: October 6, 2026
City Investment Policy Annual Adoption: October 6, 2026 1004
City of Redondo Beach Investment Policy Fiscal Year 2026 16

EXHIBIT B

GLOSSARY OF TERMS
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.

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. 1005
City of Redondo Beach Investment Policy Fiscal Year 2026 17 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.

Annual Comprehensive Financial Report (ACFR): The ACFR is the entity’s official annual financial report. It consists of three major sections: introductory, financial, and statistical.

Corporate Security (aka Medium-Term Note): 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. 1006
City of Redondo Beach Investment Policy Fiscal Year 2026 18 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, 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 1007
City of Redondo Beach Investment Policy Fiscal Year 2026 19 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 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 1008
City of Redondo Beach Investment Policy Fiscal Year 2026 20 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.

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, FHLMC 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 by 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. 1009
City of Redondo Beach Investment Policy Fiscal Year 2026 21 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.

Governmental Accounting 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.
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City of Redondo Beach Investment Policy Fiscal Year 2026 22 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.

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. 1011
City of Redondo Beach Investment Policy Fiscal Year 2026 23 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.

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.
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City of Redondo Beach Investment Policy Fiscal Year 2026 24 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 be issued taxable or taxexempt 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.

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".

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.

Pass-Through 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 1013
City of Redondo Beach Investment Policy Fiscal Year 2026 25 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.

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.
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City of Redondo Beach Investment Policy Fiscal Year 2026 26 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.

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 1015
City of Redondo Beach Investment Policy Fiscal Year 2026 27 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.

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 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 is sometimes similar to a check or an instrument to present for payment.
1016
City of Redondo Beach Investment Policy Fiscal Year 2026 28 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.

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.

1017
City of Redondo Beach Investment Policy Fiscal Year 2026 29

EXHIBIT C

INVESTMENT PROCEDURES MANUAL
The Investment Procedures Manual is attached.
1018
1 INVESTMENT PROCEDURES MANUAL
In accordance with Section 11 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 investment adviser, 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 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 investment adviser 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 investment adviser 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 investment adviser 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 investment adviser determines that a security should be sold due to expected value deterioration, then the investment adviser 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 for review and to the Mayor and City Council for review and adoption. 1019
Annual Update:

Investment Policy
City Treasurer
October 6, 20261020
2026 Review Focused On
1 • Updates to allow the Investment Policy to define
Permitted Investments to manage proceeds of the
Measure FP Bond Issue
• Incorporating updates to the California Government
Code
• Modernizing language to better align with the California Government Code
1021
2 Updates for Managing
Measure FP Bond Proceeds
• Added Section 14.Q Investment of Bond Proceeds
• Permitted investments for bond proceeds are not defined by California Government Code, but rather bond documents
• Relieved percentage limits on cash management tools (LAIF, CAMP, and money market fund) only for the investment of bond proceeds
• Exempted Reserve Funds from the Policy’s maximum maturity limit
• Added permission for the use of investment contracts
1022
3 Updates to Authorized Investments
• Incorporated additional criteria from Code:
• Ability to invest beyond 5 years with Council Approval • Application of percentage limits and credit minimums at time of purchase • Update language regarding handling of subsequent changes of allocation percentages or credit rating that have fallen below the minimum subsequent to purchase
• Applied 5% issuer maximum across credit sectors
• Updated rating agency reference to nationally recognized statistical rating organization (NRSRO)
• Added Asset-Backed Securities (ABS) as a new permitted sector 1023
4 Recommendation
• Approve the City’s Statement of Investment Policy
2026, as amended, and annual renewal of the
delegation of investment authority to the City
Treasurer
1024
Administrative
Report
N.2., File # 26-1202 Meeting Date: 10/6/2026
To: MAYOR AND CITY COUNCIL
From: ELEANOR MANZANO, CITY CLERK
TITLE

DISCUSSION AND POSSIBLE ACTION PERTAINING TO RESOLUTIONS REGARDING CALLING

AND GIVING NOTICE OF HOLDING AN ALL-MAIL BALLOT GENERAL MUNICIPAL ELECTION

CONSOLIDATED WITH THE REDONDO BEACH UNIFIED SCHOOL DISTRICT BOARD OF EDUCATION ON TUESDAY, MARCH 2, 2027, REQUESTING LOS ANGELES COUNTY TO

RENDER SPECIFIC SERVICES, ADOPTING REGULATIONS FOR CANDIDATE STATEMENTS,

AND APPROVING CERTAIN VENDOR AGREEMENTS FOR ELECTION-RELATED SERVICES

WHICH INCLUDE RANKED CHOICE VOTING
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2610-080, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, CALLING AND GIVING NOTICE

OF THE HOLDING OF AN ALL-MAILED BALLOT GENERAL MUNICIPAL ELECTION

CONSOLIDATED WITH THE ELECTION OF THE BOARD OF EDUCATION OF THE REDONDO BEACH UNIFIED SCHOOL DISTRICT, TO BE HELD IN SAID CITY ON TUESDAY, MARCH 2, 2027,

FOR THE ELECTION OF CERTAIN OFFICERS OF THE CITY AND MEMBERS OF THE BOARD OF

EDUCATION OF SAID SCHOOL DISTRICT, AS REQUIRED BY THE PROVISIONS OF THE

CHARTER OF THE CITY OF REDONDO BEACH
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2610-081, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF LOS ANGELES TO RENDER SPECIFIED SERVICES TO

THE CITY RELATING TO CONDUCTING AN ALL-MAILED BALLOT GENERAL MUNICIPAL

ELECTION CONSOLIDATED WITH THE ELECTION OF MEMBERS OF THE BOARD OF

EDUCATION OF THE REDONDO BEACH UNIFIED SCHOOL DISTRICT TO BE HELD ON TUESDAY, MARCH 2, 2027
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2610-082, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADOPTING REGULATIONS

PERTAINING TO CANDIDATES' STATEMENTS SUBMITTED TO THE VOTERS AT A GENERAL

MUNICIPAL ELECTION CONSOLIDATED WITH THE ELECTION OF MEMBERS OF THE BOARD

OF EDUCATION OF THE REDONDO BEACH UNIFIED SCHOOL DISTRICT FOR THE ELECTION ON MARCH 2, 2027

APPROVE AN AGREEMENT WITH SNAILWORKS, LLC FOR POSTAL BALLOT MAIL TRACKING SERVICES FOR THE MARCH 2, 2027 GENERAL MUNICIPAL ELECTION FOR THE TERM

Page 1 of 4 ends

1025
N.2., File # 26-1202 Meeting Date: 10/6/2026
OCTOBER 6, 2026 TO OCTOBER 5, 2027

APPROVE AN AGREEMENT WITH STELLARA GROUP, LLC FOR MANAGEMENT CONSULTING AND ELECTION SERVICES IN AN AMOUNT NOT TO EXCEED $30,000 FOR THE TERM OCTOBER 7, 2026 TO JUNE 30, 2027

APPROVE AN AGREEMENT WITH THE CITY OF WHITTIER FOR USE OF GENERAL ELECTION MANAGEMENT BALLOT TRACKING SOFTWARE FOR THE MARCH 2, 2027 GENERAL MUNICIPAL ELECTION IN AN AMOUNT NOT TO EXCEED $16,000 FOR THE TERM

COMMENCING UPON EXECUTION OF THE AGREEMENT THROUGH THE CONCLUSION OF

ALL LAWFUL ELECTION ACTIVITIES
APPROVE AN AGREEMENT WITH PRO DOCUMENT SOLUTIONS, INC., DBA PRO VOTE SOLUTIONS, FOR PRINT AND MAIL SERVICES FOR THE MARCH 2, 2027 GENERAL MUNICIPAL ELECTION IN THE AMOUNT OF $152,497 FOR THE TERM OCTOBER 7, 2026 TO JUNE 30, 2027 APPROVE AN AGREEMENT WITH AVANTPAGE, INC. FOR SPANISH LANGUAGE TRANSLATION SERVICES FOR THE MARCH 2, 2027 GENERAL MUNICIPAL ELECTION BALLOT MATERIALS AT A RATE OF $75 PER HOUR AND THE TERM OCTOBER 6, 2026 TO JUNE 30, 2027 APPROVE AN AGREEMENT WITH NEO PHILANTHROPY, INC., FOR STRATEGIC GUIDANCE,

MATERIAL UPDATES, COMMUNITY-LED VOTER EDUCATION, AND CANDIDATE TRAINING SERVICES FOR THE GENERAL MUNICIPAL ELECTION ON MARCH 2, 2027 IN AN AMOUNT NOT TO EXCEED $5,000 FOR THE TERM OCTOBER 6, 2026 TO JUNE 30, 2027 APPROVE AN AGREEMENT WITH LIBERTY VOTE USA, INC. FOR THE RENTAL OF LIBERTY

VOTE EQUIPMENT, BALLOT DESIGN, TABULATION SOFTWARE, AND RELATED SERVICES FOR THE MARCH 2, 2027 GENERAL MUNICIPAL ELECTION IN AN AMOUNT NOT TO EXCEED $76,400 AND THE TERM COMMENCING UPON EXECUTION OF THE AGREEMENT THROUGH MARCH 30, 2027

EXECUTIVE SUMMARY
Under the provisions of the City Charter, the City Council must adopt a Resolution to call and give notice of a General Municipal Election. The City of Redondo Beach will be holding its General Municipal Election on March 2, 2027 via all-mail ballot with Ranked Choice Voting (RCV) for City elected offices, as provided in the Redondo Beach Municipal Code and in accordance with the City Charter. The City Council must also adopt Resolutions requesting certain services of the Los Angeles County Board of Supervisors, and adopt regulations pertaining to candidate statements of a General Municipal Election. In addition, the Redondo Beach Unified School District, by its Resolution No. R:26-27:01, has requested consolidation with the City's election.

Nomination Process
The nomination period will begin Monday, November 9, 2026, and end Friday, December 4, 2026 at 5:30 p.m. In the event an incumbent does not file, the nomination period will extend for that office to Wednesday, December 9, 2026 at 5:30 p.m. On Monday, October 26, 2026, the City Clerk will begin scheduling appointments for the nomination period for potential candidates. Additional election related information is available on the City website at https://redondo.org/elections and will be updated as new information becomes available.

Page 2 of 4 ends

1026
N.2., File # 26-1202 Meeting Date: 10/6/2026

BACKGROUND
On March 7, 2023, 76.67% of the voters of Redondo Beach adopted Measure CA5, an amendment to the City Charter of the City of Redondo Beach, replacing runoff elections for elections for elective offices of the City with instant run-off elections.

On September 3, 2024, Ordinance 3275-24 was adopted to implement RCV as the instant run-off voting system. RCV is a method that allows voters to rank candidates on the ballot in order of preference and the ballots are tabulated (counted) in rounds that simulate a series of runoffs until a candidate receives 50% plus 1 and is therefore determined the winner. RCV only applies to City Office candidates, and does not include Redondo Beach Unified School District Members of the Board of Education. Key items addressed and adopted in this Ordinance include setting the maximum ranking number of candidates, selecting the total number of ballot write-in candidates, tabulation (rounds), skipped ranking, undervotes/overvotes/exhausted ballots, ties, reports, continuing to tally to two candidates, and manual tally. Redondo Beach held its first RCV election on March 4, 2025.

Vendor agreements for all election-related services for the General Municipal election pursuant to the call of the March 2, 2027 General Municipal Election include, but are not limited to:
• ballot design/layout, tabulation equipment, software and on-site support • ballot print, sample ballot, postcard and mail services • software licenses and support for vote by mail ballot processing • ballot mail tracking software
• professional election consultation services
• voter education programming/community outreach and non-partisan candidate training • translation services
In 2020, the City contracted with Hart Intercivic, Inc. for ballot design, tabulation software, equipment, and related services. In September of 2022, the City Clerk’s Office purchased the tabulation equipment and subscribed to the associated software from Hart Intercivic, Inc. In 2024, the City rented the equipment from Hart to tabulate RCV with RCTab. In 2026, Hart confirmed they have purchased full-service software with RCV. In January of 2027, HART is expected to submit this RCV software to the California Secretary of State for certification. The updated software is expected to include the tabulation component and improve reporting capabilities. Negotiations are currently in progress with Hart for a provision of credit for the annual license fee for the 2029 elections.

For the 2027 General Municipal Election, Liberty Vote will be contracted with for equipment rental, ballot design, tabulation software, and related services. Liberty Vote was selected based on its RCV reporting capabilities, votes cast record csv file, and its ability to account for votes cast in instances in which more than one qualified write-in candidate exists. Liberty Vote works with several municipalities in California and is experienced in working with RCV. 24-hour access vote-by-mail drop boxes located at the following locations will be available for use during the election:

1.) Riviera Triangle Parking - Corner of Ave del Norte & S. Elena

Page 3 of 4 ends

1027
N.2., File # 26-1202 Meeting Date: 10/6/2026

2.) Redondo Beach Main Library - 303 N. Pacific Coast Hwy

3.) North Branch Library - 2000 Artesia Blvd

4.) Dominguez Park - 200 Flagler Ln

5.) Anderson Park Senior Center - 3007 Vail Ave
Ballots may also be dropped into the ballot box located in the City Clerk’s Office at 415 Diamond Street, Door 1, during regular business hours. Vote-by-mail drop boxes will be locked at 8:00 p.m. on election Night.

The City Clerk’s Office will continue to utilize the Voter Outreach Plan (VOP) that outlines educational and outreach components related to RCV. The City Clerk’s Office will continue to reach out to various resources for best practices, the sharing of knowledge and experiences to continually enhance the plan. The VOP includes education and outreach to communicate general election information to City residents and equip voters with knowledge of choices in RCV contests for city elected City offices. The types of outreach strategies include: print media, social media, community meetings, partnering with local groups and organization, etc., with specific timelines for each.

Staff recommends approval of the proposed resolutions and agreements as presented.

COORDINATION
The City Clerk’s Office has coordinated with the City Attorney’s Office.

FISCAL IMPACT
Funding for the proposed Agreements is included in the Adopted FY 2026-27 Budget, which includes $421,500 for the March 2027 Election.

APPROVED BY:

Eleanor Manzano, City Clerk

ATTACHMENTS
· Reso - No. CC-2610-080 Calling Election
· Reso - No. CC-2610-081 Requesting County Services
· Reso - No. CC-2610-082 Candidate Statements Regulations · RBUSD Resolution R:26-27:01
· Agmt - SnailWorks, LLC
· Agmt - Stellara Group, LLC
· Agmt - City of Whittier
· Agmt - Pro Document Solutions, Inc. dba Pro Vote Solutions · Agmt - Avantpage, Inc.
· Agmt - Neo Philanthropy, Inc. (to be included as a Blue Folder Item) · Agmt - Liberty Vote USA, Inc.

Page 4 of 4 ends

1028
RESOLUTION NO. CC-2610-080
CALLING GENERAL MUNICIPAL ELECTION - MARCH 2, 2027
PAGE NO. 1
RESOLUTION NO. CC-2610-080

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF AN ALLMAILED BALLOT GENERAL MUNICIPAL ELECTION CONSOLIDATED WITH

THE ELECTION OF THE BOARD OF EDUCATION OF THE REDONDO BEACH

UNIFIED SCHOOL DISTRICT, TO BE HELD IN SAID CITY ON TUESDAY, MARCH 2, 2027, FOR THE ELECTION OF CERTAIN OFFICERS OF THE CITY

AND MEMBERS OF THE BOARD OF EDUCATION OF SAID SCHOOL

DISTRICT, AS REQUIRED BY THE PROVISIONS OF THE CHARTER OF THE

CITY OF REDONDO BEACH
WHEREAS, under the provisions of the Charter of the City of Redondo Beach, California, a General Municipal Election consolidated with the election of the Board of Education of the Redondo Beach Unified School District, shall be held on Tuesday, March 2, 2027, for the election of certain officers of the City of Redondo Beach and for Members of the Board of Education of the School District of the City; and
WHEREAS, the election is called for the purpose of electing Members of the City Council from Districts 3 and 5, a City Clerk, a City Treasurer, and two Members of the Board of Education for full terms of four years.

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

SECTION 1. That pursuant to the requirements of the Charter of the City of Redondo Beach, there shall be, and there is hereby called and ordered held in the City on Tuesday, March 2, 2027, a General Municipal Election by All-Mailed Ballot for the purpose of electing:

A member of the City Council representing District 3 for the FULL term of four (4) years; A member of the City Council representing District 5 for the FULL term of four (4) years; A City Clerk for the FULL term of four (4) years; and
A City Treasurer for the FULL term of four (4) years; and Two members of the Board of Education of the Redondo Beach Unified School District for the FULL term of four (4) years.

SECTION 2. That the ballots to be used at the election shall be in the form and content as required by law.

SECTION 3. That the City Clerk is authorized, instructed, and directed to procure and furnish any and all official ballots, notices, printed material and all supplies equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election. 1029
RESOLUTION NO. CC-2610-080
CALLING GENERAL MUNICIPAL ELECTION - MARCH 2, 2027
PAGE NO. 2
SECTION 4. That pursuant to the State Elections Code, the City of Redondo Beach Municipal Code, and other applicable provisions of the City Charter and Ordinances of the City of Redondo Beach, said Election shall be conducted by All-Mailed Ballot, and shall be conducted pursuant to Chapter 2, Division 4 (commencing with Section 4100 of the California Elections Code), notwithstanding the limitations of California Elections Code, Section 4000 et seq., only insofar as required by law. Ballots cast in this General Municipal Election shall be returned to the official drop off locations no later than 8:00 p.m., on Election Day. Pursuant to the Election Code Section 3020, Vote-by-Mail ballots received via United States Postal Service or a bona fide private mail delivery company must be postmarked or date/time stamped by March 2, 2027, and received by the elections official no later than 7 days after election day.

SECTION 5. That on March 7, 2023, the voters of the City of Redondo Beach adopted Measure CA5, an amendment to the City Charter of the City of Redondo Beach, replacing runoff elections for elections for Municipal Elective Offices of the City with Ranked Choice Voting, also known as Instant Runoff Voting.

SECTION 6. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 7. That notice of the time and place of holding the election is hereby given and the City Clerk is hereby authorized, instructed, and directed to give further or additional notice of the election in time, form, and manner as required by law.

SECTION 8. That in the event of a tie vote as determined by the Elections Official, the Elections Official will refer to the Redondo Beach Municipal Code Section 2-2.405, or the City Council adopted Resolution No. CC-2410-089, whichever applies.

SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and shall enter the same in the Book of Original Resolutions.

SECTION 10. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

PASSED, APPROVED AND ADOPTED this 6th day of October, 2026.

James A. Light, Mayor
APPROVED AS TO FORM: ATTEST:

Joy A. Ford, City Attorney Eleanor Manzano, CMC, City Clerk 1030
RESOLUTION NO. CC-2610-080
CALLING GENERAL MUNICIPAL ELECTION - MARCH 2, 2027
PAGE NO. 3

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 Resolution No. CC-2610-080 was passed and adopted by the City Council of the City of Redondo Beach, California, at a regular meeting of said City Council held on the 6th day of October, 2026, and there after signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
Eleanor Manzano, CMC
City Clerk
1031
RESOLUTION NO. CC-2610-081
REQUESTING COUNTY SERVICES MARCH 2, 2027 ELECTION
PAGE NO. 1
RESOLUTION NO. CC-2610-081

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH,

CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE

COUNTY OF LOS ANGELES TO RENDER SPECIFIED SERVICES TO THE

CITY RELATING TO CONDUCTING AN ALL-MAILED BALLOT GENERAL

MUNICIPAL ELECTION CONSOLIDATED WITH THE ELECTION OF

MEMBERS OF THE BOARD OF EDUCATION OF THE REDONDO BEACH
UNIFIED SCHOOL DISTRICT TO BE HELD ON TUESDAY, MARCH 2, 2027 WHEREAS, a General Municipal Election is to be held in the City of Redondo Beach, California, on March 2, 2027 consolidated with the Election of Members of the Board of Education of the Redondo Beach Unified School District; and
WHEREAS, in the course of conduct of the election it is necessary for the City to request services of the County of Los Angeles; and
WHEREAS, all necessary expenses in performing these services shall be paid by the City of Redondo Beach; and
WHEREAS, the City of Redondo Beach is a Charter City; and WHEREAS, the Municipal Code of the City of Redondo Beach Section 2-2.206 states that the City Council may, by resolution, provide for an election by mailed ballot notwithstanding the limitations of California Elections Code, Section 4000 et seq.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the provisions of Section 10002 of the Elections Code of the State of California, the City Council requests the Board of Supervisors of the County of Los Angeles to permit the County Elections Department to prepare and furnish to the City and their authorized vendors for use in conducting the election, computer data consisting of the names and addresses and current precinct of all eligible registered voters in the City of Redondo Beach in order that the City may print labels for mailing and/ or by electronic mail the Voter Information/Sample Ballot pamphlet to all registered voters in the City and for processing vote by mail ballots; provide other services, which may include consolidation of precincts as directed by the City; and to make available to the City additional election equipment and assistance according to State law.

SECTION 2. That the City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill.

SECTION 3. That the City Clerk is directed to forward without delay to the Board of Supervisors and to the County Election Department, each a certified copy of this resolution.

SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the Book of Original Resolutions. 1032
RESOLUTION NO. CC-2610-081
REQUESTING COUNTY SERVICES MARCH 2, 2027 ELECTION
PAGE NO. 2
PASSED, APPROVED AND ADOPTED this 6th day of October, 2026.

James A. Light, Mayor
APPROVED AS TO FORM: ATTEST:

Joy A. Ford, City Attorney Eleanor Manzano, CMC, City Clerk 1033
RESOLUTION NO. CC-2610-081
REQUESTING COUNTY SERVICES MARCH 2, 2027 ELECTION
PAGE NO. 3

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 Resolution No. CC-2610-081 was passed and adopted by the City Council of the City of Redondo Beach, California, at a regular meeting of said City Council held on the 6th day of October, 2026, and there after signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
Eleanor Manzano, CMC
City Clerk
1034
RESOLUTION NO. CC-2610-082
ADOPTING REGULATIONS FOR CANDIDATES STATEMENTSGENERAL MUNICIPAL ELECTION - MARCH 2, 2027 PAGE NO. 1
RESOLUTION NO. CC-2610-082

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH,

CALIFORNIA, ADOPTING REGULATIONS PERTAINING TO CANDIDATES'

STATEMENTS SUBMITTED TO THE VOTERS AT A GENERAL MUNICIPAL

ELECTION CONSOLIDATED WITH THE ELECTION OF MEMBERS OF THE

BOARD OF EDUCATION OF THE REDONDO BEACH UNIFIED SCHOOL
DISTRICT FOR THE ELECTION ON MARCH 2, 2027
WHEREAS, §13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidate's statement.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH,

CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. GENERAL PROVISIONS. That pursuant to §13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of Redondo Beach on Tuesday, March 2, 2027, may prepare a candidate's statement on an appropriate form provided by the City Clerk. The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate's education and qualifications expressed by the candidate. The statement shall not include any reference to another candidate or to another candidate's qualifications, character, or activities; party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be of uniform type size, style and spacing, using block paragraphs and single space format. Text submitted indented or centered will be typed on block paragraph form. Entire statements in all capital letters, bold and italics (or any combination of enhancements) are not acceptable. Enhanced words that are printed in boldface type, underscored and/or CAPITALIZED are to be clearly indicated. The pronoun "I" is not counted as an enhanced word. The statement shall be in typewritten form and electronic (Microsoft Word) format using Times New Roman in 11 point size, made up of block paragraphs, and shall be emailed to the City Clerk's Office in advance of filing nomination documents. All statements should be checked by the candidate for spelling and punctuation as the elections official is not permitted to edit any material contained therein. It is recommended that dashes or hyphens at the end of a line are not used. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m., of the next working day after the close of the nomination period.

SECTION 2. FOREIGN LANGUAGE POLICY.

A. Pursuant to the Federal Voting Rights Act, the City is NOT required to translate candidates' statements into any language(s). The City Clerk wishes to translate only specific Election documents into Spanish, although not required. Such documents include: Ballot and Voter Guide.

B. Pursuant to state law, the candidate's statement must be translated and printed (in the voters' pamphlet) in Spanish only, if the candidate's request and provides the required deposit.
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ADOPTING REGULATIONS FOR CANDIDATES STATEMENTSGENERAL MUNICIPAL ELECTION - MARCH 2, 2027 PAGE NO. 2
C. The City Clerk shall

1. Translations:
(a) Have all candidate statements translated into the languages specified in (B) above.

2. Printing:
(a) Print an English only voter pamphlet to be mailed to all voters. (b) Print any translations of candidate's statement in language(s) required for the City who so requests printing in the main voter pamphlet. - the main voter pamphlet will be an English pamphlet, also containing candidate statement translations in Spanish if requested by the candidate.
(c) Have all translations made available upon request in the office of the City Clerk.
(d) Print and mail a separate voter pamphlet in Spanish or the language(s) required for the City to only those voters who are on the county voter file as having requested a voter pamphlet in a particular language.

SECTION 3. PAYMENT.

A. Translations:

1. The candidate shall not be required to pay for the cost of translating the candidate's statement into Spanish as specified in (B) of Section 2 above pursuant to Federal law.

B. Printing:

1. English only. The candidate shall be required to pay for the cost of printing the candidate's statement in English in the main voter pamphlet as follows:
a) District Candidates - A $500.00 deposit is required at the time of filing. b) City-wide Candidates - A $1,900.00 deposit is required at the time of filing.

2. Additional printing in Spanish. The candidate shall be required to pay for the cost of printing the candidate's statement in Spanish required in (B) of Section 2 above, in the main voter pamphlet, if requested, as follows:
(a) District Candidates - A $200.00 deposit is required at the time of filing in addition to the fee required in (B) of Section 3 above for a total of $500.00 (English and Spanish printing in voter pamphlet).
(b) City-wide Candidates - A $400.00 deposit is required at the time of filing in addition to the fee required in (B) of Section 3 above for a total of $1,300.00 (English and Spanish printing in voter pamphlet).

The City Clerk shall estimate the total cost of printing, handling, translating, and mailing the candidate's statements filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay in advance to the local agency his or her estimated pro rata share as a condition of having his or her statement included in the voter's pamphlet. The estimated deposit is required and this is an estimate based an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the clerk is not bound by the estimate and may, on a pro rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost. In the event of underpayment, the clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the clerk shall prorate the excess amount among the candidates and refund the excess amount paid within 45 1036
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ADOPTING REGULATIONS FOR CANDIDATES STATEMENTSGENERAL MUNICIPAL ELECTION - MARCH 2, 2027 PAGE NO. 3
days of the election.

SECTION 4. MISCELLANEOUS.

A. All translations shall be provided by professionally-certified translators.

B. The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

SECTION 5. ADDITIONAL MATERIALS.

A. No candidate will be permitted to include additional materials in the voter pamphlet.

SECTION 6. That the City Clerk shall provide each candidate or the candidate's representative a copy of this Resolution at the time nominating petitions are issued.

SECTION 7. That all previous resolutions establishing council policy on payment for candidates' statements are repealed.

SECTION 8. That this resolution shall apply only to the election to be held on March 2, 2027 and shall then be repealed.

SECTION 9. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the Book of Original Resolutions.

PASSED, APPROVED AND ADOPTED this 6th day of October, 2026.

James A. Light, Mayor
APPROVED AS TO FORM: ATTEST:

Joy A. Ford, City Attorney Eleanor Manzano, CMC, City Clerk 1037
RESOLUTION NO. CC-2610-082
ADOPTING REGULATIONS FOR CANDIDATES STATEMENTSGENERAL MUNICIPAL ELECTION - MARCH 2, 2027 PAGE NO. 4

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 Resolution No. CC-2610-082 was passed and adopted by the City Council of the City of Redondo Beach, California, at a regular meeting of said City Council held on the 6th day of October, 2026, and there after signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
Eleanor Manzano, CMC
City Clerk
1038
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V4.SA-CA
SnailWorks Service Agreement – California Elections
Company Name: City of Redondo Beach, CA
This is an “Agreement” between “You”, “Your”, or “City” and “SnailWorks, LLC”, concerning your use of the SnailWorks services, provided by SnailWorks.

Services Provided: This Agreement provides for integrated marketing support services only, providing postal mail tracking, digital marketing campaign support, and associated services to be provided at prices specified in the Pricing Schedule. Additional reports and other services requested that are outside of the scope of this Agreement are subject to additional charges.

Term: This Agreement shall commence on October 6, 2026 and continue through October 5, 2027. Account Setup Fee: The Mail Tracking Account Setup fee includes creating a primary account in the SnailWorks system, issuing logins to primary account users, and training the data processors utilizing SnailWorks for the job creation process.

Vendor Training: For end-users and agencies using multiple vendors for their mailing efforts, a training fee of $250 applies to any vendor that has not previously been trained on using the SnailWorks system. Fees for vendors previously trained on the SnailWorks system are waived.

Branding: Fees for co-branding apply if that option is selected unless noted as included with the subscription or scan credit purchase. White label domain is an additional cost.

Invoicing: Invoices are sent out no later than the tenth day of the month. The terms of payment are net 45 days. In the event of nonpayment, SnailWorks, LLC reserves the right to terminate your SnailWorks account and services and all your sub-accounts.

Additional Service Fees: In addition to the mail tracking fees specified above, there may be fees charged for other services provided as detailed in the Pricing Schedule in this agreement.

These fees will be charged after services are provided monthly. Invoices for such services are sent out no later than the tenth day of the month. The terms of payment are net 45 days.

Data Retention: Summary Data is retained for 6 months; Mailing Detail Records are retained for 6 months.

Mailer ID’s: SnailWorks will manage IV Data Delegation for up to 3 Mailer IDs. Additional Mailer ID Data Delegation to SnailWorks is $100 per MID.

SnailWorks Customer Usage Policy: SnailWorks provides a very flexible and powerful system for our clients. Most systems and processes are developed to serve a specific purpose. Using tools and reporting in ways other than intended can create significant problems system-wide, interfering with the processing of jobs across the system. SnailWorks reserves the right to disable SnailWorks features or accounts as needed to protect system integrity. Uses that may cause actionable problems include, but are not limited to:
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V4.SA-CA
• Misuse of User Defined Fields – summary vs. unique value • Generating large numbers of serial number sequence gaps (non-contiguous) • Misuse of auto-splitting – mixing classes
• Misuse or unauthorized use of SnailWorks MID
In the event of a system failure caused by the above or any other misuse, intended or otherwise, SnailWorks will make every effort to remedy the situation with an alternative solution that serves the needs of the customer. SnailWorks also reserves the right to disable accounts or features until problems can be mitigated.

Reprocessing: Mailing Detail files or Mail.dat files must be uploaded to SnailWorks before, or at the same time as eDocs are submitted to USPS. Files uploaded after eDoc submission may require additional processing to capture historical data and may be subject to additional charges.

Use of Trademarks: “SnailWorks” is a registered trademark of SnailWorks, LLC. As an authorized user of SnailWorks services, you may use the SnailWorks name, logo, and other associated brands in the marketing of your services if you remain an active and paid-up client.

Upon cancellation of this agreement by either party, you agree to remove all references and branding related to SnailWorks from all your marketing materials (including printed materials, web-based marketing, and website within 60 days.

Limitations of service: SnailWorks shall provide its services with reasonable care and skill consistent with industry standards. Further, SnailWorks shall implement commercially reasonable measures to protect the integrity and security of its online services. SnailWorks warrants that the Services shall be performed in a professional workmanlike manner, with reasonable care and skill consistent with applicable industry standards, and shall conform to the requirements of this Agreement. Snailworks shall promptly correct, at no additional cost to you, any Services that fail to conform to this warranty. However, all other warranties, whether express or implied, are disclaimed of any kind or nature concerning SnailWorks services including without limitation, any warranty of title, merchantability, quality, informational content, accuracy, or fitness for your specific purpose. We expressly disclaim any warranties that may be implied from the usage of trade, course of dealing, or course of performance. We do not warrant exclusivity or non-infringement worldwide. Access to SnailWorks, LLC via the Internet is “as is” and “as available” and SnailWorks, LLC provides no warranties of any kind regarding the availability, reliability, or integrity of the Internet, or any data transmitted via the Internet.

Notices. All notices required or permitted to be given hereunder shall be given in writing and shall be deemed to have been given when, emailed, personally delivered or by nationally recognized overnight carrier or mailed, certified or registered mail, return receipt requested, addressed to the intended recipient as follows:

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If to SnailWorks:

SnailWorks LLC
5 S Market Street
Suite B, FL 3
Frederick, MD 21701
Steve Hertz, Director of Sales
Email: [email protected]

If to the City:

City of Redondo Beach
City Clerk’s Office
415 Diamond Street, Door 1
Redondo Beach, CA 90277
Email: [email protected]
Voter Registration Information. In performing the Services under this Agreement, SnailWorks shall comply with all applicable federal, state, and local laws, regulations, and rules governing the access, use, disclosure, storage, security, transmission, retention, and destruction of voter registration information, including, to the extent applicable, California Elections Code sections 2188, 2188.2, 2188.5, and 2194, and Title 2, California Code of Regulations, sections 19001 through 19013, as amended or recodified from time to time.

SnailWorks shall use voter registration information solely as necessary to perform the ballot tracking services for the City under this Agreement and for no other purpose. SnailWorks shall not disclose, transfer, sell, license, or otherwise make voter registration information available to any person or entity except to SnailWorks’ employees, agents, or subcontractors acting on SnailWorks’ behalf who have a need to know such information to perform the Services and who are bound by written obligations no less protective than those set forth in this Agreement, or as otherwise expressly permitted by applicable law. Any transfer of voter registration information shall comply with Title 2, California Code of Regulations, section 19005.

SnailWorks shall maintain administrative, technical, and physical safeguards for voter registration information that meet or exceed the requirements of Title 2, California Code of Regulations, section 19012, and any other applicable legal requirements governing such information. SnailWorks shall remain responsible for any access to, use of, disclosure of, transfer of, storage of, transmission of, retention of, or destruction of voter registration information by its employees, agents, and subcontractors.

SnailWorks shall notify the City immediately, and in no event later than twelve (12) hours after discovery, of any actual or suspected unauthorized access, use, disclosure, exposure, loss, compromise, or breach of voter registration information, or any denial-of-service attack or other security incident materially affecting any system used to access, process, store, or transmit such information. SnailWorks shall cooperate with the City in investigating, mitigating, remediating, documenting, and reporting any such incident and shall make all notifications and reports required by applicable law, including any report required by Title 2, California Code of Regulations, section 19013.
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Upon expiration or termination of this Agreement and in accordance with the data provisions of this Agreement, SnailWorks shall securely delete all data in accordance with Title 2, California Code of Regulations, section 19012, and applicable law, except to the extent retention is required by law.

Governing Law. This Agreement will be construed under the laws of the State of California.

The parties hereto shall comply with all applicable California laws in performance of this Agreement. Any action or proceeding arising out of or relating to this Agreement shall be brought exclusively in the Superior Court of California, County of Los Angeles.

Survival: The provisions concerning indemnification, confidentiality, restrictions on the use or disclosure of information, voter registration, data security, incident notification and cooperation, data retention and destruction, and governing law and venue shall survive the expiration or termination of this Agreement to the extent necessary to give such provisions full effect.

Indemnification: Each party agrees to indemnify, defend, and hold harmless the other party from and against any-and-all third-party claims, damages, losses, and expenses, including reasonable legal fees arising out of or relating to:
• The indemnifying party’s breach of this Agreement
• Indemnifying gross negligence or willful misconduct.

Neither party shall be liable for indemnifying the other for any claims arising from the other party’s own negligence or willful misconduct.
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V4.SA-CA
Insurance: SnailWorks shall comply with the insurance requirements set forth below.

Without limiting SnailWorks, LLC’s indemnification obligations under this Agreement, SnailWorks 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 SnailWorks, LLC, 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
SnailWorks 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 selfinsured retentions as respects the City, its officers, officials, employees and volunteers or (2) SnailWorks, LLC 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 shall be covered as insured with respect to liability arising out of work performed by or on behalf of SnailWorks. General liability coverage can be provided in the form of an endorsement to SnailWorks insurance, or as a separate owner’s policy. 1044
V4.SA-CA
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 SnailWorks.

For any claims related to this project, SnailWorks 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 exceed SnailWorks 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.

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 SnailWorks, LLC’s part.

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.

Verification of Coverage
SnailWorks shall furnish the City with original certificates and amendatory endorsements affecting 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 affecting the coverage required by these specifications at any time.

Subcontractors
SnailWorks shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to the requirements stated herein.
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Risk Management
SnailWorks acknowledges that insurance underwriting standards and practices are subject to change, and the City reserves the right to make changes to these provisions at the reasonable discretion of its Risk Manager.
1046

AGREEMENT FOR PROJECT SERVICES

BETWEEN THE CITY OF REDONDO BEACH

AND STELLARA GROUP, LLC
THIS AGREEMENT FOR PROJECT SERVICES (this "Agreement”) is made between the City of Redondo Beach, a chartered municipal corporation ("City") and Stellara Group, LLC, a California limited liability company (“Contractor") The parties hereby agree as follows:

A. Description of Project or 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”.

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

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, 1047
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Contractor 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 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.

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 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 five (5) 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. Unless otherwise provided herein, all changes and/or extra work under this Agreement shall be provided for by a subsequent written amendment executed by City and Contractor.
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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 1049
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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.
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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, and employment laws.

18. Non-Discrimination. Contractor 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.

Contractor 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, military and veteran status, or any other legally protected characteristic. Contractor shall ensure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment. Contractor shall include a similar non-discrimination provision in all subcontracts related to the performance of this Agreement.

19. 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 1051
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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.

20. 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.

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 exchanged between Contractor 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 Contractor.

24. 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.

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 Contractor, 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, Contractor 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." 1052
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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 Contractor against City hereunder shall be subject to Government Code §§ 810 et seq. The claims presentation provisions of said Act 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.

32. 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.

33. Warranty; Correction of Work. Contractor warrants that all products, equipment, materials, services, deliverables, and work provided under this Agreement shall:
a. be delivered with good title, free of liens, claims, and encumbrances; b. conform to all requirements of this Agreement;
c. be new and of good quality, unless otherwise expressly approved by the City in writing;
d. be free from defects in design, materials, manufacture, fabrication, installation, and workmanship; and
e. be fit and suitable for their intended purpose.

Unless a longer warranty period is specified in this Agreement or provided by an applicable manufacturer, supplier, subcontractor, or other third party, the warranties in this Section shall remain in effect for one (1) year from the latest of the date of delivery, completion of the applicable services or work, installation and operational testing, if applicable, or acceptance by the City. The City’s inspection, testing, use, payment, or acceptance of any product, service, deliverable, or work shall not waive any warranty or relieve Contractor of any obligation under this Section.

Consumable items shall be warranted for thirty (30) days from the date of delivery or acceptance by the City, whichever is later. For purposes of this Section, “consumable items” means items intended to be routinely consumed, depleted, or replaced through normal use, such as disposable filters, fluids, and replaceable lamps. Consumable items do not include installed equipment, 1053
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batteries, electrical or lighting components or assemblies, finishes, graphics, manufactured or fabricated components, or any other item intended to remain in service as part of the completed product or work.

If, during the applicable warranty period, the City determines that any product, equipment, material, service, deliverable, or work is defective or nonconforming, Contractor shall, upon the City’s written notice and at Contractor’s sole cost and expense, promptly repair, correct, remove, replace, or reperform the defective or nonconforming product, service, deliverable, or work. Contractor’s obligations shall include all labor, professional services, supervision, materials, equipment, testing, transportation, removal, disposal, reinstallation, restoration, and other costs necessary to provide fully conforming products, services, deliverables, and work.

If Contractor fails to begin and diligently complete the required correction within the time specified by the City, or immediately when necessary to protect persons or property or prevent interruption of City operations, the City may correct, replace, or reperform the defective or nonconforming product, service, deliverable, or work itself or through others. Contractor shall reimburse the City for all costs and expenses incurred by the City.

Any repaired, corrected, replaced, or reperformed product, service, deliverable, or work shall be warranted for one (1) year from the date the repair, correction, replacement, or reperformance is completed and accepted by the City, or for the remainder of the original warranty period, whichever is longer.

Contractor shall obtain and pass through to the City all applicable manufacturer, supplier, subcontractor, and other third-party warranties, together with all documentation reasonably necessary for the City to enforce those warranties.

Third-party warranties are in addition to, and shall not limit, reduce, replace, or condition, Contractor’s obligations under this Section.

Nothing in this Section shall limit Contractor’s obligation to correct, replace, or reperform defective or nonconforming products, services, deliverables, or work or Contractor’s indemnity obligations under Section 14. The warranties, obligations, and remedies set forth in this Section are cumulative and are in addition to all other rights and remedies available to the City under this Agreement or applicable law.

The warranties and obligations set forth in this Section shall survive completion, acceptance, payment, termination, and expiration of this Agreement and shall remain in full force and effect for the applicable warranty periods stated herein and under any assigned or passed-through third-party warranties. 1054
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34. Severability. 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 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.

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.

37. Counterparts and Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which when taken together shall constitute one agreement. Signatures transmitted electronically or executed by electronic signature shall have the same force and effect as original signatures.

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