Agenda packet — Redondo Beach City Council, October 13, 2026 (part 3 of 4)

463
Administrative
Report
L.1., File # 26-1221 Meeting Date: 10/13/2026
To: MAYOR AND CITY COUNCIL
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
TITLE

PUBLIC HEARING FOR CONSIDERATION OF INTRODUCTION AND FIRST READING OF AMENDMENTS TO TITLE 10, CHAPTER 5 (ZONING ORDINANCE) OF THE REDONDO BEACH

MUNICIPAL CODE (RBMC) PERTAINING TO SERVICE STATION REGULATIONS REGARDING

GENERAL FOOD SALES

CONSIDERATION OF FINDINGS/EXEMPTIONS UNDER THE CALIFORNIA ENVIRONMENT

QUALITY ACT (CEQA), INCLUDING BUT NOT LIMITED TO FINDINGS THAT SAID ADDITIONAL

REGULATIONS AND/OR AMENDMENTS OF EXISTING REGULATIONS ARE NOT SUBJECT TO CEQA PURSUANT TO SECTIONS 15060(C)(2), 15060(C)(3), AND 15061(B)(3) OF THE CEQA GUIDELINES, AND THAT THE CODE AMENDMENTS ARE NOT A “PROJECT” SUBJECT TO SECTION 15378(B)(5)
RECOMMENDATION:

1. Open the public hearing, take testimony from staff and other interested parties, and deliberate;

2. Close the public hearing; and

3. Consider Introducing Ordinance No. 3324-26 and Adopt Resolution 2610-085:

INTRODUCE BY TITLE ONLY ORDINANCE NO. 3324-26 AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADOPTING AN ORDINANCE AMENDING REDONDO BEACH MUNICIPAL CODE TITLE 10, CHAPTER 5, SECTION 10-5.1602 PERTAINING

TO GENERAL FOOD SALES, INCLUSIVE OF BEER AND WINE, AT SERVICE STATIONS ADOPT BY TITLE ONLY, RESOLUTION NO. 2610-085, A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF REDONDO BEACH, CALIFORNIA, FORWARDING TO AND REQUESTING

CERTIFICATION BY THE CALIFORNIA COASTAL COMMISSION OF AMENDMENTS TO THE COASTAL LAND USE PLAN IMPLEMENTING ORDINANCE, TITLE 10, CHAPTER 5, SECTION 10-

5.1602 PERTAINING TO SERVICE STATIONS AND DETERMINING SUCH AMENDMENTS AS

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, WHICH IS INTENDED TO BE CARRIED OUT IN A MANNER FULLY IN CONFORMITY WITH THE COASTAL ACT; AND PROVIDING THAT THE AMENDMENTS TO THE CITY’S LOCAL COASTAL PROGRAM WILL TAKE

EFFECT AUTOMATICALLY UPON COASTAL COMMISSION APPROVAL PURSUANT TO PUBLIC RESOURCES CODE SECTION 30514 AND TITLE 14, SECTION 13551 OF THE CALIFORNIA

CODE OF REGULATION

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464
L.1., File # 26-1221 Meeting Date: 10/13/2026

EXECUTIVE SUMMARY
On October 3, 2023, the City Council approved Ordinance No. 3263-23 that amended the Redondo Beach Municipal Code (RBMC) to allow general food sales at service stations in the City’s Inland Zone. Prior to the adoption of the Ordinance, service stations throughout the City were permitted to sell incidental convenience items, but not general food items under Ordinance #1971-2044.

On January 14, 2026 the City Council directed staff to draft an Ordinance to also amend the RBMC with respect to the City’s Coastal Zone. Staff presented a Draft Ordinance to the Planning Commission at a public hearing held on May 21, 2026 for review and input. The Planning Commission voted 5 to 2 to not recommend Council adoption of the proposed Ordinance amending RBMC Section 10-5.1602.

This item/hearing allows the City Council to consider approving the proposed Ordinance for introduction and first reading.

BACKGROUND
Since 1987, state law has prohibited cities from enacting new guidelines that prohibit the concurrent sale of motor vehicle fuel and beer and wine for off-premises consumption in zoning districts where these uses are allowed. The City’s policy prohibiting the concurrent sale of these items was enacted in 1971 (Ordinance #1971-2044) and, as result, is still valid in the City’s Coastal Zone.

On October 3, 2023, the City Council voted to allow the sale of general food items at service stations in the City’s Inland Zone. Research leading up to the Council’s action indicated the City’s prohibition was extremely rare. Nearly all cities surveyed by staff allow for the sale of general food items, including beer and wine, at service stations and regulate the activity through conditional use permits (CUP).

There are currently 10 service stations in the City of Redondo Beach, two of which are in the coastal portion of the City. At this time, service stations in the City’s Coastal Zone are only permitted to sell incidental convenience items for the immediate consumption of the motoring public. This class of goods includes soft drinks, candy, cigarettes, and other small items. In order for the updated retail regulations to apply to all service stations in the City, the City Council, on January 14, 2026, directed staff to draft an Ordinance to also amend the RBMC with respect to the City’s Coastal Zone.

The draft Ordinance includes provisions required by Business and Professions Code (BPC) Section 23790.5, which sets minimum state standards as follows:
· No beer or wine shall be displayed within five feet of the cash register or the front door unless it is in a permanently affixed cooler
· No advertisement of alcoholic beverages shall be displayed at motor fuel islands · No sale of alcoholic beverages shall be made from a drive-in window · No display or sale of beer or wine shall be made from an ice tub · No beer or wine advertising shall be located on motor fuel islands and no self- illuminated advertising for beer or wine shall be located on buildings or windows · Employees on duty between the hours of 10 p.m. and 2 a.m. who sell beer or wine shall be at least 21 years of age to sell beer and wine
Under California law, the City Council also has the discretion to implement additional regulations beyond what is required by the California BPC. As such, the draft Ordinance contains additional

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465
L.1., File # 26-1221 Meeting Date: 10/13/2026
beyond what is required by the California BPC. As such, the draft Ordinance contains additional restrictions that could be applied by the City through its Conditional Use Permit (CUP) process including, but not limited to:
· Compliance with all conditions required by the Department of Alcoholic Beverage Control · Explicit limiting of alcohol sales to beer and wine
· Limiting the percentage of retail space dedicated to alcohol sales · Requiring that coolers containing beer and wine be locked during hours they are not actively being sold
· Prohibiting single serve/individual containers of alcohol · Prohibiting advertising of alcohol visible from the location’s exterior · Ensuring that the proposed hours of operation are complementary, and will not negatively impact, the surrounding business district
· Prohibition on electronic games
Staff presented the proposed Ordinance amending Section 10-5.1602 of the RBMC for the Coastal Zone to the Planning Commission at a public hearing on May 21, 2026. The Planning Commission voted 5-2 to not recommend the adoption of the proposed Ordinance. Planning Commission Resolution No. 2026-05-PCR-06 found the proposed Ordinance is not consistent with the General Plan and cited a December 2022 Los Angeles County Department of Public Health report citing that additional alcohol sales could have an adverse impact on public health.

If adopted, the Ordinance amending RBMC Title 10, Chapter 5, Section 10-5.1602 Service Stations would require second reading and adoption on October 20, 2026 and would then be forwarded to, and require certification from, the California Coastal Commission. It would become effective immediately following Coastal Commission approval. Failure to adopt the Ordinance would result in no change to the City’s current policy regarding the sale of incidental food items at service stations in the Coastal Zone, with general food items still being prohibited. General food sales in the City’s Inland Zone are unaffected by this item.

COORDINATION
This item was coordinated with the Community Development Department, City Manager’s Office, and the Police Department. The City Attorney’s Office reviewed and approved the draft Ordinance.

FISCAL IMPACT
There is no fiscal impact associated with the preparation of this item and the associated documentation.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Ord No. 3324-26 - Amending RBMC Title 10, Chapter 5, Section 10-5.1602 - General Food Sales Service Stations Coastal
· Reso No. 2610-085 - Requesting Certification by the California Coastal Commission for Amendments to the Coastal Land Use Plan Implementing Ordinance Title 10, Chapter 5, Section 10-5.1602 - General Food Sales Service Stations Coastal

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466
L.1., File # 26-1221 Meeting Date: 10/13/2026
· Administrative Report - City Council, January 13, 2026 · Reso - No. 2026-05-PCR-06, Planning Commission, May 21, 2026 · Administrative Report - Planning Commission, May 21, 2026 · Ord - #1971-2044
· California Code Business and Professions Code - BPC § 23790.5 · Public Hearing Notice - October 1, 2026

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467
ORDINANCE NO. 3324-26
ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 1
ORDINANCE NO. 3324-26

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
REDONDO BEACH, CALIFORNIA, AMENDING TITLE 10,
CHAPTER 5, SECTION 10-5.1602 PERTAINING TO

SERVICE STATIONS AND DETERMINING SUCH

AMENDMENTS AS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, at the November 1, 2022 Council Meeting, the Redondo Beach City Council considered whether to lift the City’s ban on general food sales, inclusive of beer and wine at service stations; and
WHEREAS, after the City Council discussed the matter, a motion was made to direct staff to return with options repealing the ban on general food sales, inclusive of beer and wine at service stations, including a conditional use permit process and associated conditions; and
WHEREAS, on February 21, 2023, staff returned to the City Council with the draft inland and coastal ordinances for consideration and City Council provided direction to finalize only the inland ordinance and forward to Planning Commission for review; and WHEREAS, the Planning Commission held a duly noticed public hearing, took public testimony, and considered the inland ordinance amendment on April 20, 2023 and recommended the City Council not adopt the inland ordinance for consideration; and WHEREAS, at a duly noticed public hearing on September 19, 2023, the City Council approved the amended inland ordinance for first reading and introduction; and WHEREAS, on October 3, 2023, the City Council approved the amended inland ordinance for second reading and adoption; and
WHEREAS, on January 14, 2026 City Council directed staff to forward the coastal ordinance for Planning Commission review and return to the City Council with the Planning Commission’s recommendation; and
WHEREAS, on May 21, 2026 Planning Commission held a duly noticed public hearing, took public testimony, and considered the coastal ordinance and recommended the City Council not adopt the coastal ordinance; and
WHEREAS, at a duly noticed public hearing on October 13, 2026, the City Council approved the coastal ordinance for first reading and introduction; and WHEREAS, on ____________, the City Council approved the coastal ordinance for second reading and adoption.
468
ORDINANCE NO. 3324-26
ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 2

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

SECTION 1. AMENDMENT OF CODE. Title 10, Chapter 5, Section 10-5.1602(b)(12) is hereby amended in its entirety to read as follows: (Note: Additions are noted as underlined):
“(12) General food sales, Incidental sales and rentals. a. All applicants requesting a Conditional Use Permit for general food sales, incidental sales and rentals shall comply with the requirements contained in Section 10-5-2506 relating to the application process, the hearing process, the appeal process, the termination process and revocation process in addition to the provisions detailed in this section.
b. Subject to approval of a Conditional Use Permit pursuant to 10-5.2506, general food sales, inclusive of sale of beer and wine for off-site consumption (off-sale), may be displayed and sold within an architecturally screened area that is an extension of the main structure and specifically designed for that purpose. 1) All approvals to grant a Conditional Use Permit for off-sale beer and wine sales must contain, at a minimum, the following conditions:
a) The applicant shall comply with all conditions required by the Department of Alcoholic Beverage Control.
b) Only beer and wine, not hard liquor, may be sold.
c) The display area of alcoholic beverages may not exceed 25% of the retail space.
d) Coolers containing beer and wine shall be locked during hours alcohol is not sold.
e) No displays of beer and wine shall be located within five (5) feet of the store’s entrance or cash register.
f) Cold beer or wine shall only be sold from, or displayed in, permanently affixed electrical coolers.
g) No display or sale of beer or wine shall be made from an ice tub. h) Single serve/individual containers of alcohol shall be prohibited. i) No beer or wine advertising shall be located on gasoline islands, and no lighted advertising for beer or wine shall be located on buildings or in windows.
j) No advertising or signage indicating the availability of beer and wine shall be visible from the exterior nor from entry of the retail establishment to the maximum extent possible.
k) No sales of beer or wine shall be made from a drive-in window. l) The proposed hours of operation for the use are complimentary to the business district in which the use is located, and will not negatively impact other uses.
469
ORDINANCE NO. 3324-26
ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 3
m) Employees on duty between the hours of 10:00 p.m. and 2:00 a.m. must be at least twenty-one (21) years of age to sell beer and wine. n) No video or other electronic games shall be allowed on the premises. o) Coolers containing alcohol shall remain locked until cashier verifies customer is of age.
2) Shall a nuisance arise from general food sales including, but not limited to, pan-handling, public intoxication, and noise generation such nuisance shall be the basis for the governing body to take any and all regulatory action up to and including revocation, including the imposition of additional provisions and conditions to the Conditional Use Permit.
3) Upon request of the business owner, a Conditional Use permit may be issued for general food sales, excluding off-sale beer and wine, without meeting the requirements established in Section 12(b)(1) subsections a) through o).
4) Any Conditional Use Permit granted pursuant to this section shall become null and void, and any use of the premises for off-sale beer and wine sales shall terminate immediately, if the establishment’s State off-sale beer and wine license has been terminated or suspended for a period of ninety (90) days or more.
c. Subject to approval of a Conditional Use Permit pursuant to Section 10-5.2506, incidental convenience items (i.e. soft drinks, candy, cigarettes, etc.) for the immediate consumption of the motoring public may be displayed and sold within an architecturally screened area that is an extension of the main structure and specifically designed for that purpose.
d. Subject to approval of a Conditional Use Permit pursuant to Section 10-5.2506, the rental of trucks and utility trailers within an architecturally screened area designed specifically for that purpose may be permitted as long as such truck and utility trailer rentals shall not interfere with the normal operation of the service station or the efficient circulation of automobiles on the site.”
SECTION 3. Any provisions of the Redondo Beach Municipal Code, or appendices thereto, or any other ordinances of the City inconsistent herewith, to the extent of such inconsistencies and no further, are hereby repealed.

SECTION 4. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.
470
ORDINANCE NO. 3324-26
ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 4
SECTION 5. CEQA. This Ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines because there is no possibility that this Ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs. § 15061(b)(3).) City staff shall cause a Notice of Exemption to be filed as authorized by CEQA and the State CEQA Guidelines.

SECTION 6. This ordinance shall be published by one insertion in the official newspaper of said city, and same shall go into effect and be in full force and operation automatically upon certification and approval by the California Coastal Commission.

PASSED, APPROVED AND ADOPTED this th day of October, 2026. ________________________
James A. Light, Mayor
APPROVED AS TO FORM: ATTEST:
________________________________ ________________________________ Joy A. Ford, City Attorney Eleanor Manzano, CMC, City Clerk 471
ORDINANCE NO. 3324-26
ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 5

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 the foregoing Ordinance No. 3324-26 was duly introduced at a regular meeting of the City Council held on the 13th day of October, 2026, and was duly approved and adopted by the City Council at a regular meeting of said City Council held on the __th day of October, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Eleanor Manzano, CMC
City Clerk

472
RESOLUTION NO. 2610-085
COASTAL LAND USE PLAN IMPLEMENTING ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 1
RESOLUTION NO. 2610-085

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

REDONDO BEACH, CALIFORNIA, FORWARDING TO AND

REQUESTING CERTIFICATION BY THE CALIFORNIA

COASTAL COMMISSION OF AMENDMENTS TO THE

COASTAL LAND USE PLAN IMPLEMENTING
ORDINANCE, TITLE 10, CHAPTER 5, SECTION 10-5.1602

PERTAINING TO SERVICE STATIONS AND

DETERMINING SUCH AMENDMENTS AS EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,

WHICH IS INTENDED TO BE CARRIED OUT IN A MANNER
FULLY IN CONFORMITY WITH THE COASTAL ACT; AND
PROVIDING THAT THE AMENDMENTS TO THE CITY’S

LOCAL COASTAL PROGRAM WILL TAKE EFFECT

AUTOMATICALLY UPON COASTAL COMMISSION

APPROVAL PURSUANT TO PUBLIC RESOURCES CODE
SECTION 30514 AND TITLE 14, SECTION 13551 OF THE

CALIFORNIA CODE OF REGULATION
WHEREAS, on September 11, 2003, the California Coastal Commission certified the zoning portion Local Coastal Plan (“LCP”) of the City of Redondo Beach (LCP Amendment No. RDB-LCP-1-02); and
WHEREAS, at the November 1, 2022 Council Meeting, the Redondo Beach City Council considered whether to lift the City’s ban on general food sales, inclusive of beer and wine at service stations; and
WHEREAS, after the City Council discussed the matter, a motion was made to direct staff to return with options repealing the ban on general food sales, inclusive of beer and wine at service stations, including a conditional use permit process and associated conditions; and
WHEREAS, on February 21, 2023, staff returned to the City Council with the draft inland and coastal ordinances for consideration and City Council provided direction to finalize only the inland ordinance and forward to Planning Commission for review; and WHEREAS, the Planning Commission held a duly noticed public hearing, took public testimony, and considered the inland ordinance amendment on April 20, 2023 and recommended the City Council not adopt the inland ordinance for consideration; and WHEREAS, at a duly noticed public hearing on September 19, 2023, the City Council approved the amended inland ordinance for first reading and introduction; and WHEREAS, on October 3, 2023, the City Council approved the amended inland ordinance for second reading and adoption; and
473
RESOLUTION NO. 2610-085
COASTAL LAND USE PLAN IMPLEMENTING ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 2
WHEREAS, on January 14, 2026 City Council directed staff to forward the coastal ordinance for Planning Commission review and return to the City Council with the Planning Commission’s recommendation; and
WHEREAS, on May 21, 2026 Planning Commission held a duly noticed public hearing, took public testimony, and considered the coastal ordinance and recommended the City Council not adopt the coastal ordinance; and
WHEREAS, this amendment is consistent with the “Purpose” (§ 10-5.102 Purposes (f) Promote the economic stability of existing land uses that are consistent with the General Plan and Coastal Land Use Plan) of the Coastal Land Use Plan Implementing Ordinance, and the Comprehensive General Plan Land Use Element, Policy LU-6.8 Retail Goods and Services and Policy LU-6.12 Business Retention and Expansion; and
WHEREAS, the City Council of the City of Redondo Beach determined that this amendment to the Coastal Land Use Plan Implementing Ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines because there is no possibility that this Ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs. § 15061(b)(3)); and
WHEREAS, Public Resources Code Section 30514 provides, in relevant part, that, "Any proposed amendments to a certified local coastal program shall be submitted to, and processed by, the commission in accordance with the applicable procedures and time limits specified in Sections 30512 and 30513"; and WHEREAS, California Code of Regulations, Title 14, Section 13551, requires the City to adopt a resolution to submit an amendment to the LCP to the Coastal Commission for review and approval; and
WHEREAS, at a duly noticed public hearing on October 13, 2026, the City Council approved the coastal ordinance for first reading and introduction and adopted a resolution to submit the amendments to the LCP to the Coastal Commission for review and approval.

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

SECTION 1. The City Council hereby finds that the above recitals are true and correct and are incorporated herein by reference as if set forth in full.

SECTION 2. The City Council hereby submits the adopted modifications to the Coastal Land Use Plan Implementing Ordinance to the Coastal Commission for certification pursuant to Public Resources Code Section 30514 and California Code of Regulations, 474
RESOLUTION NO. 2610-085
COASTAL LAND USE PLAN IMPLEMENTING ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 3
Title 14, Section 13551(b) as an amendment which will take effect automatically upon Commission approval.

SECTION 3. Pursuant to Public Resources Code Section 30510, the City Council: (1) hereby certifies that if the amendments to the LCP are certified by the Coastal Commission, the City Council intends to carry out the amendments to the LCP contained in Ordinance No. 3324-26 in a manner fully in conformity with Division 5.5 of the Public Resources Code; and (2) hereby directs City Staff to provide the Coastal Commission with materials sufficient for a thorough and complete review, to the extent feasible and appropriate.

SECTION 4. 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. 475
RESOLUTION NO. 2610-085
COASTAL LAND USE PLAN IMPLEMENTING ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 4
PASSED, APPROVED AND ADOPTED this 13th day of October, 2026. ________________________
James A. Light, Mayor
APPROVED AS TO FORM: ATTEST:
________________________________ ________________________________ Joy A. Ford, City Attorney Eleanor Manzano, CMC, City Clerk 476
RESOLUTION NO. 2610-085
COASTAL LAND USE PLAN IMPLEMENTING ORDINANCE AMENDING SECTION 10-5.1602 PERTAINING TO SERVICE STATIONS PAGE 5

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. 2610-085 was duly approved and adopted by the City Council at a regular meeting of said City Council held on the 13th day of October, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Eleanor Manzano, CMC
City Clerk

477
Administrative
Report
P.1., File # 26-0055 Meeting Date: 1/13/2026
To: MAYOR AND CITY COUNCIL
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
TITLE
DISCUSSION AND POSSIBLE ACTION RELATED TO THE CITY’S PROHIBITION OF GENERAL

FOOD SALES, INCLUSIVE OF BEER AND WINE, AT SERVICE STATIONS IN THE COASTAL ZONE..end

EXECUTIVE SUMMARY
At the November 4, 2025 City Council Meeting, Council Member Castle requested staff return with a discussion item regarding the possible sale of general grocery items at service stations in the City’s Coastal Zone. The City Council last discussed this item on September 19, 2023, when the Council initiated approval of Ordinance No. 3263-23 that allowed for the sale of general food items at service stations in the City’s Inland Zone.

BACKGROUND
The City of Redondo Beach currently features 11 service stations. Prior to the implementation of Ordinance No. 3263-23, which occurred in November 2023, all service stations were allowed to sell only incidental convenience items, not general food items. From a legal perspective, the “general food/grocery” category also pertains to both beer and wine.

Ordinance No. 3263-23 amended the Redondo Beach Municipal Code (RBMC) to allow for general food sales at service stations in the City’s Inland Zone only. The change impacted 9 of the City’s 11 total service stations. At the time, the City Council opted not to extend the allowance for general food sales to the two service stations in the Coastal Zone. The prohibition in the Coastal Zone remains in place today.

Should the Council wish to amend the existing Coastal Zone policy, an ordinance amending the RBMC would be required. In addition to regular City Council approval, the action would also be subject to certification by the California Coastal Commission.

If approved by Council and certified by the California Coastal Commission, service station owners would then have the opportunity to apply for a Conditional Use Permit to allow for general food sales, with or without the inclusion of beer and wine for off premises consumption. While service station owners could make the election as to whether to sell beer and wine as part of general food sales, the City could not approve only grocery sales and exclude beer and wine from any new regulations.

Liquor, however, is excluded from the general food category and is not part of this consideration.

If no follow up action is requested, the ban on general food sales for service stations in the Coastal

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478
P.1., File # 26-0055 Meeting Date: 1/13/2026
If no follow up action is requested, the ban on general food sales for service stations in the Coastal Zone would remain in effect. If Council would like to pursue lifting the ban in the Coastal Zone, staff would return with the necessary draft ordinance and revisions to the RBMC.

COORDINATION
This item was produced in coordination with the Community Development, Financial Services, and Police Departments, along with the City Attorney’s Office.

FISCAL IMPACT
Funding for the preparation of the report is included in the annual operating budgets of the participating Departments. Any fiscal impacts associated with future processing of Conditional Use Permits for gas station food sales would be offset by application fees collected by the Community Development Department.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Ord - No. 3263-23 Amending RBMC Title 10, Chapter 2, Section 10-2.1605 - General Food Sales Service Stations in the City’s Inland Zone
· Administrative Report - City Council, September 19, 2023 · Administrative Report - City Council, November 1, 2022 · Map - Service Stations Citywide

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479
RESOLUTION NO. 2026- 05- PCR- 06

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF REDONDO BEACH, CALIFORNIA,

RECOMMENDING THAT THE CITY COUNCIL NOT ADOPT

AN ORDINANCE AMENDING REDONDO BEACH
MUNICIPAL CODE TITLE 10, CHAPTER 5, SECTION 10-

5. 1602 PERTAINING TO GENERAL FOOD SALES,

INCLUSIVE OF BEER AND WINE, AT SERVICE STATIONS
WHEREAS, at the November 1, 2022 Council Meeting, the Redondo Beach City Council considered whether to lift the City' s ban on general food sales, inclusive of beer and wine at service stations; and
WHEREAS, after the City Council discussed the matter, a motion was made to direct staff to return with options repealing the ban on general food sales, inclusive of beer and wine at service stations, including a conditional use permit process and associated conditions; and
WHEREAS, on February 21, 2023, staff returned to the City Council with the draft inland and coastal ordinances for consideration and City Council provided direction to finalize only the inland ordinance and forward to Planning Commission for review; and WHEREAS, the Planning Commission held a duly noticed public hearing, took public testimony, and considered the inland ordinance amendment on April 20, 2023 and recommended the City Council not adopt the inland ordinance for consideration; and WHEREAS, at a duly noticed public hearing on September 19, 2023, the City Council approved the amended inland ordinance for first reading and introduction; and WHEREAS, on October 3, 2023, the City Council approved the amended inland ordinance for second reading and adoption; and
WHEREAS, on January 13, 2026 City Council directed staff to forward the coastal ordinance for Planning Commission review and return to the City Council with the Planning Commission' s recommendation; and
WHEREAS, notice of the time and place of the Planning Commission public hearing where the proposed ordinance amendments to the Zoning Ordinance for the Coastal Zone would be considered was given pursuant to State law and local ordinance by publication in the Easy Reader; and
WHEREAS, on May 21, 2026 the Planning Commission held a duly noticed public hearing, took public testimony, and considered the proposed coastal ordinance.

RESOLUTION NO. 2026- 05- PCR- 06

GENERAL FOOD SALES INCLUSIVE OF BEER AND WINE AT SERVICE STATIONS PAGE 1
480

NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF
REDONDO BEACH, CALIFORNIA, DOES HEREBY FIND AS FOLLOWS:

SECTION 1. FINDINGS
In compliance with the California Environmental Quality Act of 1970, as amended CEQA), and State and local guidelines adopted pursuant thereto, the zoning amendments qualify for CEQA exemption because the activity will not result in direct or reasonably foreseeable indirect physical change in the environment Section 15060( c)( 2)) and the activity is not a considered a project under CEQA and therefore the activity is covered by the common- sense exemption of the CEQA Guidelines.

2. The amendments to the Zoning Ordinance are not consistent with the General Plan.
a. The regulations are not in the best interest of the public' s health and safety as claimed in the LA County Department of Public Health' s Alcohol Outlet Density and Alcohol -Related Consequences document dated December 2022 and referenced by the Planning Commission at their duly noticed public meeting on April 20, 2023. Redondo Beach has an inordinately high density of off -premises alcohol outlets in the City of Redondo Beach. The report also claims that a high concentration of off - premises alcohol outlets is correlated to high incidences of hospitalizations and other negative alcohol related consequences. Additional gasoline/ service station alcohol sales would adversely impact the public' s health and safety.

3. These amendments do not require a vote of the people under Article XXVII of the City Charter.

SECTION 2. The above recitals are true and correct, and the recitals are incorporated herein by reference as if set forth in full.

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

SECTION 1. The Planning Commission recommends that the City Council not adopt the amendments to the Redondo Beach Municipal Code pertaining to general food sales, inclusive of beer and wine, at service stations.

FINALLY RESOLVED, that the Planning Commission forward a copy of this resolution to the City Council so the Council will be informed of the action of the Planning Commission.

RESOLUTION NO. 2026- 05- PCR- 06

GENERAL FOOD SALES INCLUSIVE OF BEER AND WINE AT SERVICE STATIONS PAGE 2
481
PASSED, APPROVED, AND ADOPTED this 21st day of May, 2026. nil Jv
Wayne Craig, Chair
Planning Commission
City of Redondo Beach
ATTEST:

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) SS

CITY OF REDONDO BEACH )
I, Sean Scully, Planning Manager of the City of Redondo Beach, California, do hereby certify that the foregoing Resolution No. 2026- 05- PCR- 06 was duly passed, approved and adopted by the Planning Commission of the City of Redondo Beach, California, at a regular meeting of said Planning Commission held on the 21 st day of May, 2026, by the following roll call vote:

AYES: Light, Boswell, Young, Gadis, Hazeltine
NOES: Chairperson Craig, Conroy
ABSTAIN: None
ABSENT: None
Sean Scully,
Planning Manager
APPROVED AS TO FORM:
qvj`2
City Atto Iy' sOffice RESOLUTION
NO. 2026- 05- PCR- 06 GENERAL

FOOD SALES INCLUSIVE OF BEER AND WINE AT SERVICE STATIONS PAGE 3 482
Administrative
Report
J.1., File # PC26-0617 Meeting Date: 5/21/2026
To: PLANNING COMMISSION
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
TITLE
PUBLIC HEARING FOR CONSIDERATION OF AMENDMENTS TO TITLE 10, CHAPTER 5 (ZONING ORDINANCE) OF THE REDONDO BEACH MUNICIPAL CODE (RBMC) PERTAINING TO SERVICE STATION REGULATIONS REGARDING GENERAL FOOD SALES. CONSIDERATION OF

FINDINGS/EXEMPTIONS UNDER THE CALIFORNIA ENVIRONMENT QUALITY ACT (CEQA),

INCLUDING BUT NOT LIMITED TO FINDINGS THAT SAID ADDITIONAL REGULATIONS AND/OR

AMENDMENTS OF EXISTING REGULATIONS ARE NOT SUBJECT TO CEQA PURSUANT TO SECTIONS 15060(C)(2), 15060(C)(3), AND 15061(B)(3) OF THE CEQA GUIDELINES, AND THAT THE CODE AMENDMENTS ARE NOT A “PROJECT” SUBJECT TO SECTION 15378(B)(5).

RECOMMENDATION:

1. Open the continued public hearing, take testimony from staff and other interested parties, and deliberate;

2. Close the public hearing; and

3. Adopt a resolution by title only subject to the findings contained therein

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF REDONDO BEACH,

CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE AMENDING REDONDO BEACH MUNICIPAL CODE TITLE 10, CHAPTER 5, SECTION 10-5.1602 PERTAINING

TO GENERAL FOOD SALES, INCLUSIVE OF BEER AND WINE, AT SERVICE STATIONS

EXECUTIVE SUMMARY
At its January 13, 2026 meeting, the City Council voted unanimously to direct staff to take the necessary steps to prepare an ordinance to allow for the sale of general grocery items at service stations in the City’s Coastal Zone to make it congruent with regulations in the City’s Inland Zone.

The sale of general grocery items in the City’s Inland Zone was approved with Ordinance No. 3263- 23 in November of 2023.

The City Council previously discussed this item on September 19, 2023, when the Council initiated approval of Ordinance No. 3263-23 that allowed for the sale of general food items at service stations in the City’s Inland Zone.

BACKGROUND
There are currently 10 service stations in the City of Redondo Beach, 8 of which are in the inland portion of the City. At this time, those service stations permitted to sell general grocery items while the two stations in the Coastal Zone are only permitted to sell incidental convenience items for the

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J.1., File # PC26-0617 Meeting Date: 5/21/2026
the two stations in the Coastal Zone are only permitted to sell incidental convenience items for the immediate consumption of the motoring public. This class of goods includes soft drinks, candy, cigarettes and other small items.

The City Council considered lifting prohibition in both the Inland and Coastal Zones at their February 21, 2023 meeting, but directed staff to only pursue an ordinance change in the Inland Zone at a Special Meeting held on February 28, 2023. That action was approved with Ordinance No. 3263-23 in November of 2023.

The Ordinance approved by Council for the Inland Zone included all provisions required by Business and Professions Code (BPC) Section 23790.5. This sets the minimum state standards, but does not limit additional local regulation. The baseline BPC standards state:
· No beer or wine shall be displayed within five feet of the cash register or the front door unless it is in a permanently affixed cooler
· No advertisement of alcoholic beverages shall be displayed at motor fuel islands · No sale of alcoholic beverages shall be made from a drive-in window · No display or sale of beer or wine shall be made from an ice tub · No beer or wine advertising shall be located on motor fuel islands and no self- illuminated advertising for beer or wine shall be located on buildings or windows · Employees on duty between the hours of 10 p.m. and 2 a.m. who sell beer or wine shall be at least 21 years of age to sell beer and wine
Under California law, the City Council has discretion to implement additional regulations beyond what is required by the California BPC. The Ordinance adopted by Council also contained additional restrictions that are memorialized in the Inland Ordinance. These include:
· Compliance with all conditions required by the Department of Alcoholic Beverage Control · Explicit limiting of alcohol sales to beer and wine
· Limiting the percentage of retail space dedicated to alcohol sales · Requiring that coolers containing beer and wine be locked during hours they are not sold · Prohibiting single serve/individual containers of alcohol · Prohibiting advertising of alcohol visible from the location’s exterior · Ensuring that the proposed hours of operation are complementary, and will not negatively impact, the surrounding business district
· Prohibition on electronic games
Staff is requesting that the Planning Commission consider the proposed ordinance amending Title 10, Chapter 5, Section 10-5.1605 of the Redondo Beach Municipal Code (RBMC) allowing service stations in the Coastal Zone to sell general grocery items and find that the proposed change is consistent with the City’s General Plan. This would bring the regulations in the Coastal Zone in line with those currently in effect in the City’s Inland Zone. Staff will return to City Council with the Planning Commission's recommendation on the proposed Ordinance amending RBMC Title 10, Chapter 5, Section 10-5.1602 Service Stations.

COORDINATION
This item was coordinated with the Community Development Department , City Manager’s Office,

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J.1., File # PC26-0617 Meeting Date: 5/21/2026
This item was coordinated with the Community Development Department , City Manager’s Office, and the Police Department. The City Attorney’s Office prepared the draft Ordinance.

APPROVED BY:

Mark Wiener, Community Development Director

ATTACHMENTS
· Reso - Proposed Planning Commission Resolution, Inclusive of Proposed Amendments to the RBMC
· Ord - No. 3263-23 Amending RBMC Title 10, Chapter 2, Section 10-2.1605 - General Food Sales Service Stations in the City’s Inland Zone
· Administrative Report - City Council, January 13, 2026 · Administrative Report - City Council, September 19, 2023 · Administrative Report - City Council, November 1, 2022 · Map - Service Stations Citywide

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California Code, Business and Professions Code - BPC § 23790.5 (a) It is the intent of the Legislature in enacting this section to ensure that local government shall not be preempted in the valid exercise of its land use authority pursuant to Section 23790, including, but not limited to, enacting an ordinance requiring a conditional use permit. It is also the intent of the Legislature to prevent the legislated prohibition of the concurrent retailing of beer and wine for off-premises consumption and motor vehicle fuel where the retailing of each is otherwise allowable.
(b)(1) No city, county, or city and county shall, by ordinance or resolution adopted on or after January 1, 1988, legislatively prohibit the concurrent retailing of motor vehicle fuel and beer and wine for off-sale consumption in zoning districts where the zoning ordinance allows motor vehicle fuel and off-sale beer and wine to be retailed on separate sites. (2) On and after January 1, 1989, no city, county, or city and county ordinance or resolution adopted prior to May 5, 1987, shall have legal effect if it legislatively prohibits the concurrent retailing of motor vehicle fuel with beer and wine for off-sale consumption in zoning districts where the zoning ordinance allows beer and wine and motor vehicle fuel to be retailed on separate sites.
(3) On and after July 1, 1988, no city, county, or city and county ordinance or resolution adopted on or after May 5, 1987, shall have legal effect if it legislatively prohibits the concurrent retailing of motor vehicle fuel with beer and wine for off-sale consumption in zoning districts where the zoning ordinance allows beer and wine and motor vehicle fuel to be retailed on separate sites.
(4) This section shall not apply to a prohibition by a city, county, or city and county of the sale of beer and wine in conjunction with the sale of motor vehicle fuel if that prohibition occurs as a result of the prohibition of the combining of the sale of motor vehicle fuel with a broader class of products or uses which includes alcoholic beverages or beer and wine as a named or unnamed part of that larger class, if that prohibition was enacted before August 1, 1985. (c) Subject to the restrictions and limitations of subdivision (b), this section shall not prevent a city, county, or city and county from denying permission, or granting conditional permission, to an individual applicant to engage in the concurrent retailing of motor vehicle fuel with beer and wine for off-premises consumption pursuant to a valid conditional use permit ordinance based on appropriate health, safety, or general welfare standards contained in the ordinance if that conditional use permit ordinance contains all of the following:
(1) A requirement for written findings.
(2) A provision for an administrative appeal if the governing body has delegated its power to issue or deny a conditional use permit.
(3) Procedures for notice of a hearing, conduct of a hearing, and an opportunity for all parties to present testimony.
(4) A requirement that the findings be based on substantial evidence in view of the whole record to justify the ultimate decision.
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(d) Notwithstanding any other provision of law, establishments engaged in the concurrent sale of motor vehicle fuel with beer and wine for off-premises consumption shall abide by the following conditions:
(1) No beer or wine shall be displayed within five feet of the cash register or the front door unless it is in a permanently affixed cooler as of January 1, 1988. (2) No advertisement of alcoholic beverages shall be displayed at motor fuel islands. (3) No sale of alcoholic beverages shall be made from a drive-in window. (4) No display or sale of beer or wine shall be made from an ice tub. (5) No beer or wine advertising shall be located on motor fuel islands and no self-illuminated advertising for beer or wine shall be located on buildings or windows. (6) Employees on duty between the hours of 10 p.m. and 2 a.m. who sell beer or wine shall be at least 21 years of age.

The standards contained in this subdivision are minimum state standards which do not limit local regulation otherwise permitted under this section. (e) If there is a finding that a licensee or his or her employee has sold any alcoholic beverages to a minor at an establishment engaged in the concurrent sale of motor vehicle fuel with beer and wine for off-premises consumption, the alcoholic beverage license at the establishment shall be suspended for a minimum period of 72 hours. For purposes of Section 23790, the effect of such a license suspension shall not constitute a break in the continuous operation of the establishment nor a substantial change in the mode or character of operation. (f) The provisions of this section apply to charter cities. 505

EASY READER, INC
PO Box 427, Hermosa Beach CA 90254
138 PierAve., Hermosa Beach CA 90254
Phone (310) 372-4611

PROOFOFPUBLICATION
(2015.5C.C.P.)

STATE OF CALIFORNIA,
County of Los Angeles, I am a citizen of the United States and a resident of the County aforesaid:I am over the age of eighteen
years and nota party to or interested in the
above-entitled matter. I am the principal clerk of
the printer of the EASY READER Inc.,
Redondo Beach News,a newspaper of
general circulation, published WEEKLY in the City
of HERMOSA BEACH, County of Los Angeles, and
which newspaper has been adjudgeda newspaper of
general circulation by the Superior Court of the
County of Los Angeles, State of California, under the
date of October 24, 1972, Case Number SWC 22940
and October 3, 1989, Case Number SWC 108772, and
that the notice, of which the annexed isa printed
copy (set in type not smaller that nonpareil), has been published in each regular and entire issue of said
newspaper and not in any supplement thereof on the
following dates, to-wit:

ALL IN THE YEAR 2026

CITY OF REDONDO BEACH
RD26-062
Public Notice Coastal Convenience Alcohol
October 1st
ALL IN THE YEAR 2026 I certify (or declare) unde
rpenaltyofperjurythat
theforegoingistrueandcorrect. Signed at HERMOSA BEACH,
CALIFORNIA. This 8th day of October, 2026 Judy A. Rae, Principal Clerk 506
Administrative
Report
N.1., File # 26-1292 Meeting Date: 10/13/2026
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, WATERFRONT AND COMMUNITY SERVICES

DIRECTOR
TITLE

DISCUSSION AND POSSIBLE ACTION REGARDING THE NIKE AFTER DARK TOUR HALF MARATHON EVENT SCHEDULED FOR OCTOBER 24, 2026
RECEIVE AND FILE A PRESENTATION FROM NIKE, INC. REGARDING EVENT LOGISTICS,

COMMUNITY OUTREACH, AND PLANNED MITIGATION MEASURES

EXECUTIVE SUMMARY
On July 7, 2026, the City Council approved a License Agreement with Nike, Inc. (Nike) for the Nike After Dark Tour Half Marathon to be held on October 24, 2026. The event will utilize Seaside Lagoon and the adjacent parking lot as its headquarters and include a race course through portions of Redondo Beach and neighboring communities.

This item provides an opportunity for Nike to present the final event details to the City Council, including event operations, traffic management, public safety coordination, community outreach, and measures to mitigate impacts to affected residents, businesses, and waterfront visitors. The presentation will also provide an opportunity for the Council to ask questions regarding event preparations and Nike's coordination with the community ahead of race day.

BACKGROUND
Nike selected Redondo Beach as the host location for the Los Angeles stop of its Nike After Dark Tour, a nighttime running series celebrating women's participation in sport. The half marathon is scheduled for Saturday, October 24, 2026, and is expected to attract approximately 12,000 participants. The race will begin and end at the King Harbor Waterfront, with a course extending through portions of Redondo Beach, Hermosa Beach, and Torrance.

On July 7, 2026, the City Council approved a License Agreement with Nike authorizing use of Seaside Lagoon, designated parking facilities, portions of Harbor Drive, and other identified public areas for event activities. Under the Agreement, Nike will pay a $320,000 license fee and reimburse the City for all municipal service costs associated with the event. Nike is also required to provide a youth soccer clinic for up to 100 participants and 100 complimentary race entries for distribution by the City.

Seaside Lagoon will serve as the event headquarters, hosting participant services, sponsor and community activations, food and beverage concessions, entertainment, and other race-related

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N.1., File # 26-1292 Meeting Date: 10/13/2026
community activations, food and beverage concessions, entertainment, and other race-related activities. Event setup, operations, and breakdown will occur over multiple days and require temporary street closures, parking restrictions, and designated event areas to accommodate race operations and ensure public safety.

The scale and timing of the event require coordination among City Departments, neighboring jurisdictions, and affected community stakeholders. Under the Agreement, Nike is required to implement a community outreach program in coordination with the City, including advance notifications, stakeholder engagement, access planning, traffic updates, and ongoing communication with affected residents, businesses, hotels, places of worship, and other stakeholders.

Staff has been coordinating with Nike and its event management team, the Police Department, Fire Department, Public Works Department, and other involved City personnel regarding traffic control, emergency access, event security, pedestrian circulation, parking, business access, and event logistics. Nike is responsible for mitigating community and business impacts, conducting all community outreach, obtaining required permits, providing event staffing and infrastructure, maintaining required insurance, reimbursing municipal service costs, and restoring affected event areas to their pre-event condition.

As noted, this item provides the City Council and members of the public an opportunity to hear directly from Nike regarding final event preparations, community outreach efforts, traffic and access management, public safety coordination, and the measures planned to mitigate impacts to the surrounding community.

COORDINATION
Planning for the race has been coordinated with Nike and its event management team, the Police Department, Fire Department, Public Works Department, and other involved City Departments regarding event planning and operational requirements. This report was prepared by the Community Services Department.

FISCAL IMPACT
The License Agreement includes a $320,000 license fee to be paid to the City and requires Nike to reimburse the City for all municipal services costs associated with the event.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Agmt - License Agreement with Nike, Inc., July 7, 2027

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1 AGREEMENT FOR SPECIAL EVENT SERVICES

AND REVOCABLE LICENSE
Nike After Dark Run)

THIS AGREEMENT FOR SPECIAL EVENT SERVICES AND REVOCABLE LICENSE ( this “ Agreement”) is entered into as of July 7, 2026, by and between NIKE, INC., an Oregon corporation (“ Licensee”), and the CITY OF REDONDO BEACH, a California charter city and municipal corporation (“ City”). City and Licensee are hereinafter referred to as a “ Party” individually or collectively referred to as the “ Parties.”

RECITALS
A. Licensee desires to obtain the exclusive use of the Seaside Lagoon, the adjacent north parking lot, and designated City streets ( the “ Licensed Premises”) for the operation of the Nike After Dark Run, a half marathon race ( the “ Event”), and associated programming and activations. The Event is scheduled for October 24, 2026.

B. For and in consideration of the covenants and agreements set forth herein, City desires to license the Licensed Premises to Licensee, and Licensee desires to accept the license of the Licensed Premises from City.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. License. City grants to Licensee a license to enter upon and use the Licensed Premises for the purposes and subject to the terms and conditions set forth in this Agreement. This grant of license is not a lease and shall not constitute a grant of any property rights. The Licensed Premises consists of:
a. Seaside Lagoon, located at 200 Portofino Way, Redondo Beach, CA Seaside Lagoon”).
b. The parking lot located at 200 Portofino Way, Redondo Beach, CA Event Parking Lot”).
c. The parking lot located at 207 N. Harbor Drive, Redondo Beach, CA (“ Southern Event Parking Lot”).
d. The public streets, rights- of-way, and adjacent pedestrian and bicycle pathways within the City of Redondo Beach along the following route: Harbor Drive (near 245 N. Harbor Drive) to Pacific Avenue, to Catalina Avenue, south to Torrance Boulevard, west along Torrance Boulevard/ Coral Way/George Freeth Way to The Esplanade, south to Paseo de la Playa at the boundary with the City of Torrance, then reentering Redondo Beach at Paseo de la Playa and continuing to The Esplanade, to Vista del Mar, to Camino de la Costa, east through the alleyway immediately north of Palos Verdes Boulevard to Catalina Avenue, north to Knob Hill Avenue, then reversing direction and proceeding south along Catalina Avenue, returning through the alleyway immediately 509
2 north of Palos Verdes Boulevard to Camino de la Costa, to Vista del Mar, to The Esplanade, to Catalina Avenue, north to Francisca, north to Herondo Street, west to Harbor Drive, north to the boundary with the City of Hermosa Beach, then re-entering Redondo Beach via The Strand through the pathway at Gateway Parkette to Harbor Drive, and proceeding south to the point of commencement (“ Event Route”).
e. The parking lot located at 230 Portofino Way, Redondo Beach, CA JCS Parking Lot”).
f. The Veterans Park parking lot located at 505 George Freeth Way, Redondo Beach, CA (“ Veterans Park Parking Lot”).
g. Nonexclusive use of the library parking structure located at 303 N.

Pacific Coast Highway, Redondo Beach, CA (“ Library Parking Structure”).

The Seaside Lagoon, Event Parking Lot, Southern Event Parking Lot, and JCS Parking Lot are depicted in Exhibit A hereto. The Event Route is depicted in Exhibit B hereto. The Veterans Park Parking Lot is depicted in Exhibit C hereto. The Event shall be conducted in the Event Route, Seaside Lagoon, Event Parking Lot, Southern Event Parking Lot, JCS Parking Lot, and Veterans Park Parking Lot and no other locations, except as provided in this Section 1 below. If any component of the Licensed Premises is rendered unusable by City or other governmental agency action, or by a Force Majeure Event ( as defined below), City and Licensee shall attempt in good faith to identify an alternate location, subject to availability.

Licensee may request that the City provide Licensee additional Licensed Premises for use in connection with the Event. City does not guarantee the availability of additional Licensed Premises, but shall make reasonable, good faith efforts to accommodate Licensee’ s requests. The License Fee for any additional Licensed Premises shall be mutually agreed upon by City and Licensee, and shall be memorialized either through an administrative memorandum signed by both Parties or a written signed amendment to this Agreement.

2. Term.
a. Term of Agreement. The term of this Agreement shall commence as of the date of this Agreement set forth in the first paragraph hereof, and shall expire on December 31, 2026.
b. Term of Exclusive Use Periods. The time of Licensee’ s exclusive use of the Licensed Premises shall be as follows:
i. Seaside Lagoon: 7:00 a.m. October 17, 2026 to 10:00 p.m.

October 27, 2026.
ii. Event Parking Lot: 7:00 a.m. October 17, 2026 to 10:00 p.m. October 27, 2026.
510
3 iii. Southern Event Parking Lot: 7:00 a.m. October 17, 2026 to 10:00 p.m. October 27, 2026
iv. Event Route: 10:00 a.m. to 11:00 p.m. October 24, 2026, with the exception of Harbor Drive, which Licensee will have exclusive use of from 11:59 p.m. October 23, 2026 to Noon on October 25, 2026.
v. JCS Parking Lot: 7:00 a.m. October 17, 2026 to 10:00 p.m.

October 27, 2026.
vi. Veterans Park Parking Lot: 11:59 p.m. October 23, 2026 to Noon on October 25, 2026.
c. Term of Non-Exclusive Use Periods. The time of Licensee’ s use non-exclusive) of the Licensed Premises shall be mutually agreed upon by both Parties in accordance with Section 7 hereof.

3. License Fee. Licensee shall pay to City a license fee of Three Hundred Twenty Thousand Dollars ($ 320,000) in consideration for Licensee’ s rights under this Agreement ( the “ License Fee”). Half of the License Fee ($ 160,000) shall be due and payable not later than July 31, 2026, and the other half of the License Fee ($ 160,000) shall be due and payable not later than October 24, 2026. Payment of the License Fee shall be made to City at the address shown in Section 36 hereof, attention Finance Department, or such other place as City may designate in writing. The License Fee, less ( a) a prorated amount for Licensee’ s actual use of the Licensed Premises to the date of Licensee’ s vacation thereof, and ( b) the fee for any municipal services provided and damage repair to the date of termination pursuant to Section 7 hereof, shall be refunded in the event the Event is cancelled or materially altered due to an uncured City Default hereunder or a Force Majeure Event precluding Licensee’ s use and occupancy of the Licensed Premises.

4. Use. Licensee is permitted to use the Licensed Premises solely and exclusively for the following uses and no other uses (“ Permitted Uses”):
a. Event Route: The Event Route shall be used as the running course for the Event, including the installation of safety barriers and all other safety precautions as reviewed and approved by the City Police Department. Activation nodes along the Event Route, as approved by the City and within the Event Route, may include but shall not be limited to photo stations, music stations, food and water stations, restrooms, cheer stations, a drone show, sponsor activations, giveaways, and other spectator engagement elements.
b. Seaside Lagoon, Event Parking Lot, Southern Event Parking Lot, JCS Parking Lot and Veterans Park Parking Lot: The Seaside Lagoon, Event Parking Lot and Southern Event Parking Lot shall be used for music, food and beverage concessions, retail concessions, partner activations, race activations ( packet and product pickup), and staging for talks, announcements and entertainment for the Event. Licensee 511
4 shall have access to the public restrooms inside Seaside Lagoon for use during the Seaside Lagoon exclusive use period. All custodial services and restroom materials and supplies needed during the Seaside Lagoon exclusive use period shall be provided by Licensee.

Licensee shall ensure that public access to the King Harbor hand launch and boat hoist located adjacent to Seaside Lagoon is not blocked or otherwise impaired at any time by Licensee’ s use of Seaside Lagoon.

The JCS Parking Lot shall be used for non-public operational activities and storage for the Event. The Veteran’ s Park Parking Lot shall be used for an activation space for families and friends of Event participants. The Library Parking Structure shall be used as a park and shuttle location.

All activations and uses within the Licensed Premises shall be reviewed and approved by the City. City shall have sole discretion to grant or withhold consent to any request by Licensee to use the Licensed Premises for any use which is not a Permitted Use, and City may condition any such consent to compliance with such conditions as City in its sole discretion determines appropriate.

Activities in the Seaside Lagoon and Event Parking Lot shall occur only during the following dates and times:

Load-in: 7:00 a.m. to 10:00 p.m. October 17 to October 21, 2026 Pre-Race Activation: 10:00 a.m. to 8:00 p.m. October 22 to October 23, 2026
Race Day: 10:00 a.m. to 11:00 p.m. October 24
Load- out: 7:00 a.m. to 10:00 p.m. October 26 to October 27, 2026.

5. Licensee’ s Management of the Event. During the term of this Agreement, Licensee agrees to plan, promote, coordinate, install, manage and supervise the Nike After Dark Run Event, consisting of the presentation and operation of a half marathon run and other approved ancillary activities associated therewith. Licensee shall provide professional management and operation services including employing an Event manager, other Event staffing and volunteers, race marshals, traffic control coordination, security personnel, and other necessary personnel. Licensee shall provide portable public restrooms for the Event at Licensee' s expense in sufficient number to avoid lengthy lines. Licensee shall be responsible for all costs and expenses associated with the performance of this Agreement and production of the Event.

Licensee shall be responsible for providing any necessary staffing, monitoring, security, or access control associated with Licensee’ s use of the Library Parking Structure, particularly during evening hours following closure of the adjacent library facilities and the securing of associated gates and doors. Licensee shall provide on-site personnel to facilitate participant access to and from the Library Parking Structure, including monitoring entry points and coordinating access through any secured doors or gates, as required.
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5 6. Street Closures. City shall permit the closure of Harbor Drive between the Hermosa Beach border in the north and Pacific Avenue to the south between 11:59 p.m.

October 23, 2026 to Noon October 25, 2026. City shall permit the closure of all other streets within the Event Route not earlier than 3:00 p.m. on October 24, 2026. Licensee shall be responsible for undertaking all actions necessary to close such streets, including without limitation the installation of all barricades and signage necessary for all street closures, and City shall not be responsible therefor. Licensee shall submit a traffic control plan to the City prior to the Event for the reasonable approval of the City Traffic Engineer, and upon approval thereof the City Traffic Engineer shall provide all required governmental approvals for the street closures contemplated herein. Licensee shall immediately open, clear and clean the Event Route ( except for Harbor Drive) on a rolling basis as soon as the last runner bypasses each portion of the Event Route.

7. Police, Fire and Other City Services. City and Licensee shall meet and confer to determine and agree upon a plan for the type and level of police, fire, public works and other municipal services that the Parties agree are necessary to be provided by City for the Event. The City shall provide Police, Fire and Public Works Department support and additional municipal services in accordance with the mutually agreed upon municipal services plan. City shall additionally provide such emergency services with respect to the Event as City determines are necessary, in City’ s sole discretion. Licensee shall reimburse the City for any municipal services provided for the Event, and for the cost of any repairs which need to be performed to City property required as a result of Licensee’ s use of the Licensed Premises, at the rates for such services set forth in the municipal services plan ( or at City’ s standard rates for services for which rates are not included in such plan). The City shall invoice Licensee for municipal services provided and damage repair within thirty ( 30) days following the Event, and Licensee shall remit the municipal services reimbursement amount to the City thirty ( 30) days after receipt of City’ s invoice.

Licensee may utilize the Library Parking Structure for park- and- shuttle parking associated with the Event in accordance with a written plan for use of the Library Parking Structure which is mutually agreed upon by both Parties. Such use shall be non-exclusive, and the Library Parking Structure shall remain open for use by the public and other authorized users at all times.

8. Permits and Licenses. Licensee shall, at its own expense, procure and keep in force, with respect to the Event, all necessary permits and licenses from City and all other government agencies having jurisdiction over the Event. City shall reasonably cooperate with Licensee in obtaining required permits and approvals. City shall not be obligated to provide Licensee any waivers or reductions of City fees. The programmatic details of the Event shall be coordinated with the City Manager and/or his designee ( which may include the City Community Services Director). All construction, installation and setup on the Licensed Premises shall be completed by Licensee in accordance with all City engineering, building and safety requirements.
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6 9. Community Benefit Event. As a material condition of this Agreement, Licensee shall provide a community benefit focused on youth participation in sports and/or sports- related activities during the Term of this Agreement. Such community benefit shall be satisfied through either: ( i) the planning, organization, production, and delivery of at least one community- based event in partnership with the City (a “ Community Event”); or ii) the provision of equipment, gear, supplies, funding, in-kind resources, or other support for one or more City-produced youth sports, recreation, wellness, or community events or programs, as determined pursuant to this Section.
a. City Selection and Approval. The Parties agree that the Community Event will consist of a soccer clinic for up to one hundred ( 100) participants. The location, timing, format, and required level of support associated with the soccer clinic shall be mutually agreed upon by Licensee and the City. The Community Event may be a stand- alone event or complementary activation held in conjunction with, or in support of, other City-hosted or City-coordinated programs or events, as agreed by the Parties. The City shall be responsible for participant registration and related communications, while Licensee shall be responsible for the planning, programming, staffing, and operation of the soccer clinic. Notwithstanding the foregoing, the Parties may mutually agree in writing to an alternative Community Event format. Such alternative format may include the provision of in-kind equipment, apparel, promotional items, or other materials by Licensee in support of a City-hosted or City-coordinated recreational program or event.
b. Timing Requirement. All Community Events required
under this Section 9 shall be fully completed within the Term of this Agreement, unless the City expressly agrees otherwise in writing.
c. No Cost to Participants or City. Any Community Event produced by Licensee shall be provided free of charge to all participants and at no cost, expense, or financial obligation to the City. Licensee shall be solely responsible for all costs associated with the planning, permitting, staffing, equipment, programming, marketing, insurance, security, and execution of each Community Event, unless otherwise expressly agreed to in writing by the City.
d. Public Benefit Purpose. All Community Events, support, equipment, resources, or other contributions provided shall be designed to promote youth engagement, access, and development in sports, physical activity, and related educational or wellness opportunities, and shall be conducted in a manner consistent with the City’ s community, equity, and youth development objectives.
e. Compliance With Laws and City Policies. Licensee will conduct all Community Events in compliance with all applicable federal, state, and local laws, regulations, ordinances, and City policies, including but not limited to those relating to youth safety, accessibility, nondiscrimination, and public events. 514
7 f. Coordination With City. Licensee shall reasonably
coordinate with the City regarding scheduling, messaging, branding ( if applicable), and logistical integration with other City programs or events. The City retains the right to require reasonable modifications to ensure alignment with City goals and operational requirements.
g. No Revenue Rights. Licensee shall not charge admission fees, participation fees, or solicit mandatory donations from attendees for the Community Events.
h. Failure to Perform. Failure by Licensee to timely deliver a Community Event in accordance with this Section 9 within the Term shall constitute a material breach of this Agreement if not cured within the time set forth in Section 30 hereof following written notice from City, subject to all remedies available to the City under this Agreement and applicable law.
i. Complimentary Race Entries. As an additional
community benefit, Licensee shall provide the City with one hundred ( 100) race entries bibs) for the Event at no cost to the City. The City shall have sole discretion regarding the distribution and allocation of such race entries, including the selection of recipients and the manner of distribution. Licensee shall cooperate with the City to facilitate redemption and use of the complimentary race entries in accordance with reasonable Event registration procedures.

10. Branding, Signage and Publicity. Licensee is encouraged to, and shall be permitted to, include the City logo on Event advertising and signage with prior approval of the City, in City’ s reasonable discretion ( provided that no City approval shall be required for Event promotional materials which are substantially the same as prior Event promotional materials approved by the City).

11. Minimizing Impact of Event on Community and Businesses. Licensee shall take actions to communicate with, obtain the input of, and inform City residents, local community organizations, and local businesses about the Event, in accordance with the Outreach Plan that is attached hereto as Exhibit C and incorporated herein. Licensee shall use good faith efforts to operate the Event in a manner that minimizes the impact of the Event on City residents and local businesses. Licensee shall prepare and submit to City for its approval an access plan for businesses on the west side of Harbor Drive. The access plan shall contain methods to provide reasonable access for such businesses which may include, without limitation, intermittent opening of the road and shuttle services. Licensee shall work with City staff to establish communication and coordination with businesses impacted by the road closures as reasonably necessary to minimize disruption in business function for the days leading up to and including the date of the Event. Licensee shall use commercially reasonable efforts to minimize the impact of the Event on the waterfront businesses. Notwithstanding the foregoing, nothing in this Section 11 shall be construed as an obligation of either Party to compensate residents or local businesses for expenses or lost revenues as a result of the Event, or as a guarantee that residents and local businesses will not incur expenses or lose revenues as a result of the Event. Licensee shall provide a 515
8 dedicated customer service representative on the date of the Event to receive and respond to all Event day requests and questions.

12. Condition of Licensed Premises. Licensee hereby agrees and warrants that it has investigated and inspected the condition of the Licensed Premises and its suitability for Licensee' s purposes, and Licensee does hereby waive and disclaim any objection to, cause of action based upon, or claim that its obligations hereunder should be reduced or limited because of the condition of the Licensed Premises or the suitability of same for Licensee' s purposes. Licensee acknowledges that City has not made any representations or warranty with respect to the Licensed Premises, its condition, or with respect to the suitability for Licensee' s business. If any of the City staff members providing municipal services to the Event actually learns of any hazardous or unsafe conditions that would materially impact the safe operation of the Event, City shall promptly inform Licensee of such hazardous or unsafe conditions. Notwithstanding the foregoing, City shall have no duty hereunder to inspect or test the condition of any portion of the Licensed Premises. Licensee hereby agrees that the Licensed Premises shall be taken " AS-IS", " with all faults." City shall have no obligation to alter, remodel, improve, repair, decorate or paint the Licensed Premises or any part thereof, except that if Licensee identifies potholes in the road along the Event Route, Licensee shall notify the City at least fifteen ( 15) days in advance of the Event, and City shall use reasonable good faith efforts to take action to ensure that such potholes are filled in prior to the Event.

13. Maintenance. Licensee, at its sole expense, shall keep the Licensed Premises and every part thereof in good condition and repair and shall place the Licensed Premises in good condition, in at least the quality of condition that existed prior to the Event ( ordinary wear and tear and any preexisting conditions excepted), as soon as practicable after the conclusion of the Event, or the earlier termination of this Agreement prior to the Event. Licensee shall be responsible for all custodial services and maintenance of the Licensed Premises during the Event, including the provision of all restroom materials and supplies, as well as the supervision and security of the Event and other areas of the Licensed Premises where Licensee is operating and/or providing ancillary activities.

Notwithstanding the foregoing, Licensee shall not be responsible for the repair, remediation, or correction of any preexisting defects, conditions, or code violations not caused by Licensee, its contractors, or invitees. In the event Licensee fails to maintain the Licensed Premises or otherwise fails to correct any dangerous or unsanitary condition within twenty- four (24) hours after being notified by the City to do so, the City may remedy the condition at Licensee' s expense. In the event there is an imminently dangerous condition and Licensee is unable to correct it immediately, the City may remedy the condition immediately.

14. Utilities.
a. Provision of Electrical Power Source. City shall provide Licensee with access to a metered electrical power source at the metered source point in Seaside Lagoon sufficient to accommodate the electrical needs of the Event as provided in advance by Licensee. Licensee shall reimburse the City for all electrical charges attributed to such dedicated meter during the term of the Event. City shall not be responsible for providing 516
9 electrical power at locations within the Licensed Premises other than Seaside Lagoon, including without limitation the Event Route, and Licensee shall be solely responsible for obtaining electrical power at such locations if desired by Licensee. Notwithstanding the foregoing, City shall not be responsible for any interruption, outage or failure of electrical power not caused by City or its officers, employees, agents or representatives. b. Provision of Water Source. City shall provide Licensee with access to a water source sufficient to accommodate the water needs of the Event. Licensee shall reimburse the City for all water charges incurred on the Licensed Premises during the term of the Event. City shall not be responsible for providing water services at locations within the Licensed Premises other than Seaside Lagoon, including without limitation the Event Route, and Licensee shall be solely responsible for obtaining water services at such locations if desired by Licensee. Notwithstanding the foregoing, City shall not be responsible for any interruption, outage or failure of water service not caused by City or its officers, employees, agents or representatives.

15. Removal of Personal Property. Licensee shall, at Licensee’ s sole cost and expense, remove or cause to be removed from the Licensed Premises any and all vehicles, tools, equipment, materials and other personal property. Such removal shall be completed by Licensee ( i) with respect to Licensee’ s property located at Seaside Lagoon and the Event Parking Lot, within the times for Load- out as set forth in Section 4 hereof, and ( ii) with respect to Licensee’ s property at other locations, as soon as practicable after the conclusion of the Event, or the earlier termination of this Agreement prior to the Event. If Licensee fails to remove its personal property within twenty-four (24) hours after being notified by the City to do so, City may remove and dispose of such property at Licensee’ s sole cost and expense.

16. Alterations of Improvements. Licensee shall not make or permit to be made any alterations, additions or improvements to the Licensed Premises or any part thereof without the prior written consent of City, in City’ s sole and absolute discretion.

17. Damages to Licensed Premises. Licensee shall bear responsibility for any and all damages to the Licensed Premises and improvements therein caused by the use of the Licensed Premises by Licensee or its permittees, or by any act or omission of Licensee, unless such damages are caused by the sole negligence of City, its officers, employees, contractors, agents or representatives.

18. Compliance with Laws; Taxes. Licensee shall comply with all state, federal and local laws, ordinances, rules and regulations applicable to the use and maintenance of the Licensed Premises, and the operation of the Event, including without limitation all environmental laws. Licensee shall be obligated to pay all federal, state and local taxes arising from the operation of the Event.

19. Indemnity. To the fullest extent permitted by law, Licensee shall indemnify, defend, and hold harmless City, its officers, officials, employees and volunteers collectively, “ Indemnitees”), from and against any and all claims, damages, demands, 517
10 liability, costs, losses and expenses, including without limitation court costs and reasonable attorneys’ fees ( collectively, “ Claims”), arising out of or in connection with Licensee’ s actions or inactions relating to Licensee’ s use of the Licensed Premises ( including claims asserted by residents, local businesses, or other third parties), Licensee’ s use of the Licensed Premises by Licensee’ s customers, guests, invitees, contractors, agents, or employees, Licensee’ s operation and management of the Event, or Licensee’ s failure to comply with any of its obligations contained in this Agreement, except such loss or damage that is caused by the sole negligence or willful misconduct of City, its officers, employees, contractors, agents or representatives. The provisions of this Section 19 shall survive the expiration or earlier termination of this Agreement.

20. Insurance. Licensee shall procure and maintain for the duration of the Term of this Agreement policies of commercial general liability, automobile liability, and worker’ s compensation, in accordance with the requirements set forth in Exhibit D attached hereto and incorporated herein. Prior to commencement of the Term, Licensee shall furnish City with certificates of insurance and with original endorsements effecting coverage required by this Section.

21. Assignment; No Encumbrance. The license granted by City hereby is personal to Licensee, and shall not be assigned by operation of law or otherwise absent the written consent of City, which City may condition or withhold in City’ s sole discretion.

22. No Liens or Encumbrances. Licensee shall not permit the placement of liens or encumbrances on the Licensed Premises.

23. Amendment and Limited Administrative Authority. This Agreement may be amended only by a written instrument approved by both the City Council and Licensee, and executed by authorized representatives of City and Licensee. Neither City nor Licensee shall be bound by any verbal, implied, or informal modification of this Agreement. Except as expressly provided below, all waivers, interpretations, amendments, or further agreements relating to this Agreement shall require prior consideration, approval, and written authorization by the City Council.

Notwithstanding the foregoing, the City Manager ( or designee) is authorized to take limited administrative actions without prior City Council approval solely in response to exigent or emergency circumstances that require immediate action to protect public health, safety, or welfare, or to address unforeseen operational conditions affecting the permitted event and when it is not reasonably practicable to obtain prior City Council approval. Such actions may include reasonable, temporary adjustments to operational terms ( including Event timing, access, or logistics), provided that:
a) such actions are narrowly tailored to address the exigent circumstance; b) such actions do not materially alter the scope, purpose, or duration of this Agreement;
518
11 c) such actions do not materially or substantially increase costs, liabilities, or obligations of the City; and
d) such actions do not constitute a permanent amendment to this Agreement.

By way of illustration and not limitation, such temporary actions may include minor adjustments to Event start or end times, or operational logistics, necessitated by unforeseen public safety incidents ( e.g., police activity, fire, or emergency response), provided such adjustments comply with the limitations set forth above.

Any action taken by the City Manager pursuant to this subsection shall be documented in writing and reported to the City Council as soon as reasonably practicable.

To the extent any such action would have an ongoing or material effect on this Agreement, follow up approval by the City Council shall be required. The City Manager shall not have authority to execute amendments, waivers, or further agreements that are policy-level, material, or non-exigent in nature, all of which are expressly reserved to the City Council.

The City Manager may delegate ministerial or administrative functions under this Section to management- level employees of the City, but such delegation shall not expand the scope of authority granted herein. Absent express City Council approval, no action taken by the City Manager shall have any continuing force or effect, and the terms of this Agreement shall control in all respects.

24. Waiver. The waiver by City of any term, covenant, or condition contained in this Agreement shall not be deemed to be a continuing waiver of such term, covenant, or condition, or any subsequent breach of the same or any other term, covenant, or condition in this Agreement.

25. No Rights in Third Parties. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under this Agreement on any third party, nor is anything in this Agreement intended to relieve or discharge any obligation or liability of any third party to any party in this Agreement, nor shall any provision in this Agreement give any third party any right of subrogation or action over or against any party to this Agreement.

26. Time of Essence. Time is and shall be of the essence of this Agreement.

27. Governing Law. This Agreement shall be interpreted and enforced in accordance with the laws of the State of California without regard to principles of conflicts of laws.

28. Termination. City may terminate this Agreement ( i) without cause, upon delivery of written notice to Licensee at least thirty ( 30) days prior to the date of termination, or (ii) with cause for Licensee’ s default of this Agreement, upon the expiration of the ten day written notice period pursuant to Section 29 hereof, provided that the noticed Event of Default has not been cured within such ten ( 10) day period. In the event of termination by City without cause, City shall refund the License Fee prepaid by Licensee, less ( a) a prorated amount for Licensee’ s actual use of the Licensed Premises to the effective date of termination, and ( b) the fee for any reasonable, documented, and non519 12 cancellable costs actually incurred for municipal services provided and damage repair to the effective date of termination pursuant to Section 7 hereof, with any personnel costs calculated based upon City’ s adopted fee schedule for such services. Licensee may terminate this Agreement without cause upon delivery of written notice to City at least ninety ( 90) days prior to the date of termination. In the event of termination by Licensee without cause, City shall refund to Licensee the License Fee prepaid by Licensee, less ( a) a prorated amount for Licensee’ s actual use of the Licensed Premises to the effective date of termination, ( b) the fee for any reasonable, documented, and non-cancellable costs actually incurred for municipal services provided and damage repair to the effective date of termination pursuant to Section 7 hereof, with any personnel costs calculated based upon City’ s adopted fee schedule for such services, and ( c) any reasonable, documented, and non- cancellable costs actually incurred by City in connection with the Event and approved in advance by Licensee. Upon the termination of the Agreement, Licensee shall immediately cease all use of the Licensed Premises, remove all equipment and personal property in accordance with Section 15 hereof, and restore the Licensed Premises to its original condition in accordance with Section 13 hereof. The indemnification requirements of Section 19 hereof and the License Fee requirements of Section 3 hereof shall survive the termination of this Agreement. Licensee acknowledges and agrees that Licensee is not entitled to receive, and City shall have no obligation or liability for, any compensation, reimbursement, costs, expenses, damages ( whether direct, indirect, consequential, incidental, or special), lost profits, reliance damages, expectation damages, indemnity, or relocation benefits of any kind, arising out of or related to the City’ s termination of this Agreement prior to the expiration of the Term, regardless of the cause or timing of such termination. Licensee further expressly waives any and all claims, demands, or causes of action against the City, its officers, officials, employees, and agents arising from or related to such termination, including but not limited to claims based on contract, tort, equity, or any theory of detrimental reliance or unjust enrichment.

29. Force Majeure. If the Event cannot take place, in whole or in part, or the Parties to this Agreement cannot perform any of their respective material obligations herein because of an act or regulation of public authority, fire, riot or civil commotion, lockout, strike or other labor dispute, terrorist act or threat, acts or declarations of war, substantial interruption in, or substantial delay or failure of, technical facilities, war conditions, epidemic, pandemic, death, acts of God or other occurrence outside the reasonable control of City or Licensee (“ Force Majeure Event”), both Parties shall be excused of any obligation or liability whatsoever to the other Party to the extent prevented by such Force Majeure Event. Licensee shall be entitled to a refund of the License Fee paid in the event a portion of the Event is cancelled by reason of a Force Majeure Event, less ( a) a prorated amount for Licensee’ s actual use of the Licensed Premises to the effective date of termination, ( b) the fee for any reasonable, documented, and non- cancellable costs actually incurred for municipal services provided and damage repair to the effective date of termination pursuant to Section 7 hereof, with personnel costs calculated based upon City’ s adopted fee schedule for such services, and ( c) any reasonable, documented, and noncancellable costs actually incurred by City in connection with the Event and approved in advance by Licensee.
520
13 30. Default and Remedies. An event of default (" Event of Default") shall arise hereunder if either Party defaults in the performance of any term, provision, covenant or agreement set forth in this Agreement, and ( unless such provision specifies a shorter cure period for such default) the default continues for ten ( 10) days after the date upon which the non-defaulting Party shall have given written notice of the default to the other Party.

If the defaulting Party fails to cure the default within the foregoing time period, or if a cure is not possible, the non-defaulting Party may proceed with any of the following remedies:
a. Terminate this Agreement in accordance with Section 28 hereof; b. Bring an action for equitable relief and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief; or c. Pursue any other remedy allowed at law or in equity.

Each of the remedies provided herein is cumulative and not exclusive of, and shall not prejudice any other remedy provided herein or under applicable law. No officer, employee or agent of City shall be personally liable to Licensee, or any successor in interest, in the event of any default or breach by City, or for any amount of money which may become due to Licensee or its successor or for any obligation of City under this Agreement.

31. Attorneys’ Fees. Any action to enforce or interpret this Agreement shall be brought in a court of competent jurisdiction in Los Angeles County, California. Should any legal action be brought by a Party for breach of this Agreement or to enforce any provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees, court costs, and other such costs as may be affixed by the Court.

32. Remedies Cumulative. No remedy or election of remedies provided for in this Agreement shall be deemed exclusive, but shall be cumulative with all other remedies at law or in equity. Each remedy shall be construed to give it the fullest effect allowed by law.

33. Successors and Assigns. Subject to the restrictions on assignment set forth in Section 21 hereof, the provisions, terms, and conditions of this Agreement shall bind and inure to the benefit of the Parties, their successors and permitted assigns.

34. Relationship of Parties. City and Licensee intend by this Agreement to establish the relationship of City and Licensee only, and do not intend to create a partnership, joint venture, joint enterprise, or any other business relationship other than that of licensor and licensee.

35. Severability. If any provision of this Agreement, or the application thereof to any person or circumstance, shall to any extent be or become invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
521
14 36. Notices. Unless otherwise provided herein, all notices required hereunder shall be given by United States registered or certified mail, reliable overnight courier service, or other form of mail which offers proof of mailing, postage prepaid and addressed to the Party at the address below:

City:

City of Redondo Beach
415 Diamond Street
Redondo Beach, CA 90277
Attention: City Manager
With copy to: City Attorney
Licensee:

Nike, Inc.

One Bowerman Drive
Beaverton, OR 97005
Attention: Office of the General Counsel
Either party may change its address by giving notice of such change to the other party in the manner provided in this Section. All notices and other communications shall be deemed communicated as of actual receipt or after the second day after deposit in the United States Mail, and on the next business day if delivered through overnight courier service.

37. Integration. This Agreement contains all of the agreements and understandings of the Parties with respect to any matter mentioned in this Agreement, and supersedes and terminates all prior and contemporaneous agreements between City and Licensee with respect to the matters covered in this Agreement.

38. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

39. Construction and Interpretation. It is agreed and acknowledged by Licensee that the provisions of this Agreement have been arrived at through negotiation, and that Licensee has had a full and fair opportunity to revise the provisions of this Agreement and to have such provisions reviewed by legal counsel. Therefore, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not apply in construing or interpreting this Agreement. 522
15 IN WITNESS WHEREOF, City and Licensee have executed this Agreement as of the date and year first written above.

CITY:

CITY OF REDONDO BEACH,
a California charter city and municipal
corporation
By: ___________________________
James A. Light, Mayor
ATTEST:

By: ___________________________
Eleanor Manzano, City Clerk
APPROVED:

By: _____________________________
Diane Strickfaden, Risk Manager
APPROVED AS TO FORM:

By: _____________________________
Joy A. Ford, City Attorney
LICENSEE:

NIKE, INC., an Oregon corporation
By: _______________________
Rob Aldinger, Director,
North America Brand Experiences
7/2/2026 | 4:26 PM PDT
7/2/2026 | 5:42 PM PDT
7/9/2026 | 11:33 AM PDT
7/9/2026 | 12:38 PM PDT
7/9/2026 | 12:39 PM PDT
523
16 Exhibit A
Map of Seaside Lagoon, Event Parking Lot, Southern Event Parking Lot and JCS Lot
524
17 Exhibit B
Map of Event Route
525
18 526
19 Exhibit C
Map of Veterans Park Parking Lot
527
20 Exhibit D
Outreach Plan
Jan–Feb
Develop and review course options with cities
Begin communications with city departments to review and discuss course options Conditional city approvals to announce race
Start conversations with key stakeholders and venues that will participate in the course
March–May
March
Global Nike After Dark Tour Announcement:
o Information released: Los Angeles 13.1
Initiate special event application process and engagement with City Council, City Manager and city staff
June–Aug
June – Registration Opens
Determine areas where special vehicle access is needed and begin coordination for additional parking
Create access plans, parking plans, etc. based on priority list Continue to communicate with and update city partners
Continue course visits to finalize access plans for priority businesses, etc.

Communicate special access to impacted buildings and distribute access passes and maps to managers, etc.

All Hands Meeting with Public Agencies
Partner with City's Chamber of Commerce and work to identify priority list to include:
o Businesses
o Hotels
o Theaters
o Churches
o Residential properties along the route
Determine access needs
Begin " Save the Date" email and phone communication to Priority List. Include:
o Event information
o Street closure timeline/ information
o Course route
Attend any applicable meetings with City agencies, Police Department, Fire Department, and Public Works Department
Sep–Oct
528
21 30 Days Out
Schedule and coordinate direct mailer to businesses and residents within street closure area. Include:
o Event information
o Street closure timeline
o Contact information for event representatives
Reminder" email blast sent to Priority List
Continue communication with Priority List
Race Week
Final " reminder" email blast to Priority List
Final " reminder" communication to all buildings with special access accommodations
No Parking" signs distributed along course where needed and suggested by DOT 72 hours prior
Advance notification signs placed throughout entire route 5–7 days prior Final meeting with Traffic Control company and DOT to review final plans All Hands meeting with DOT, Police Department, Fire Department, and city partners
529
22 Exhibit E
Insurance Requirements
Without limiting Licensee’ s indemnification obligations under this License, Licensee 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 use of the Licensed Premises and performance of the work hereunder by Licensee, 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
Licensee 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 of $ 4,000,000 shall apply separately to the work performed under this License.

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 shall be the responsibility of Licensee. Licensee shall disclose to the City, upon written request, the amount of any applicable deductible or self-insured retention for required coverages. Nothing in this Agreement requires an insurer to amend policy terms to reduce or eliminate any deductible or self-insured retention. If Licensee fails to pay any applicable deductible or self-insured retention, such failure will be treated as a breach only to the extent it results in a material gap in the required coverage.

Other Insurance Provisions
530
23 The general liability and automobile liability policies shall contain, or be endorsed to contain, the following provisions:

Additional Insured Endorsement:

General Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of work performed by or on behalf of the Licensee to the extent caused, in whole or in part, by the acts or omissions of Licensee or those acting on Licensee’ s behalf.

Automobile Liability: The City, its officers, elected and appointed officials, employees, and volunteers shall be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Licensee to the extent caused, in whole or in part, by the acts or omissions of Licensee or those acting on Licensee’ s behalf.

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

Each insurance policy required by this clause will provide that notice of cancellation or material change will be delivered in accordance with the policy provisions. Should any required insurance be cancelled or changed, Licensee will replace such insurance with no gaps in coverage required and provide a replacement certificate of insurance evidencing the replacement insurance policies.

Each insurance policy shall provide ( either by policy terms or endorsement) 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 to the extent provided under the applicable policy terms and conditions.

Each insurance policy shall be in effect prior to awarding the contract and each insurance policy or a successor policy shall be in effect for the duration of the project. The maintenance of proper insurance coverage is a material element of the contract and failure to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of contract on the Licensee’ 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
531
24 Licensee shall furnish the City certificates of insurance evidencing the coverages required by this clause. Additional insured and primary and non-contributory status may be evidenced by standard ISO endorsements or equivalent policy language, to the extent commercially available. Standard ISO forms are acceptable and no amendment to standard ISO wording is required, provided the coverage intent in this clause is met. The required certificates shall be provided prior to commencement of use of the Licensed Premises and thereafter upon renewal of the required policies during the term. Upon the City’ s reasonable written request, Licensee will provide copies of relevant declarations pages and applicable endorsements evidencing the coverages required by this clause, subject to reasonable confidentiality protections.

Subcontractors
Licensee shall include all subcontractors performing work in the Licensed Premises or in connection with the work under this License as insured under its policies or shall furnish separate certificates of insurance for each subcontractor evidencing compliance. All coverages for such subcontractors shall be subject to all of the requirements stated herein to the extent applicable to the subcontractor’ s scope of work.

Risk Management
Licensee acknowledges that insurance underwriting standards and practices are subject to change, and any change to the insurance requirements in this clause must be set forth in a written amendment to this Agreement executed by both parties. 532

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

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

INSURER( S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
A/C, No):

FAX
E- MAILADDRESS:

PRODUCER
A/C, No, Ext):

PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

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

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

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

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

OTHER:

Per accident)
Ea accident)
N / A
SUBR
WVD
ADDL
INSD

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

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

PROPERTY DAMAGE
BODILY INJURY ( Per accident)
BODILY INJURY ( Per person)

COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOSAUTOS ONLY

NON- OWNED

SCHEDULEDOWNED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

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

ANYPROPRIETOR/ PARTNER/ EXECUTIVE
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
STATUTEPER EROTHMM/ DD/ YYYY) LIMITS(

POLICY EXP(

MM/ DD/ YYYY) NUMBERTYPEEFFPOLICYPOLICY INSURANCELTRINSR OF DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES ( ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB $ EACH OCCURRENCE

AGGREGATE
OCCUR

CLAIMS- MADE
DED RETENTION $

PRODUCTS - COMP/ OP AGG

GENERAL AGGREGATE

PERSONAL & ADV INJURY
MED EXP ( Any one person)

EACH OCCURRENCE
DAMAGE TO RENTED $
PREMISES ( Ea occurrence)

COMMERCIAL GENERAL LIABILITY

CLAIMS- MADE OCCUR
GEN' L AGGREGATE LIMIT APPLIES PER:

POLICY
PROJECT LOC

CERTIFICATE OF LIABILITY INSURANCE

DATE ( MM/ DD/YYYY)

CANCELLATION

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

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

AUTOS ONLY
06/01/2027
X
16535
N/A
PPR 9374455- 23
2,000,000
A
C
06/01/2027 X
ACE Property And Casualty Ins Co

PROPERTY - ALL RISK
06/01/2026
CN101825290- STND-EVENT- 26-27
3,000,000
24147
06/01/2027
SEA-004236529- 03
06/01/2026
X
Included
06/19/2026
6 25,000,000
X
PAGE
3,000,000
3,000,000
B
06/01/2027
06/01/2026
06/01/2025
X
20699
MWTB 319186

SEE ADDITIONAL
N/A
MWC 316890- 26
XEU G28120539 011
N/A
Re: Event: Nike After Dark Los Angeles ; Dates:Oct 24 ; Location: Redondo, Los Angeles Address: 200 Portofino WayRedondo Beach, California United States. [for cert holders that are individuals, include the following language: "personal residence of certificate holder."] Zurich American Insurance Company

ONE BOWERMAN DRIVE
NIKE, INC.

BEAVERTON, OR 97005
Included
Self Insured
111 S.W. COLUMBIA
MARSH USA LLC.

PORTLAND, OR 97201

FIFTH FLOOR
Attn: Portland. Certs@marsh. com / FAX 212-948-0507

SELF INSURED RETENTION
Old Republic Insurance Co
N
Redondo Beach, CA 90277
City of Redondo Beach
415 Diamond St
06/01/2026
B
5,000,000
X
D
2,000,000
06/01/2028
533
ACORD 101 ( 2008/ 01)
The ACORD name and logo are registered marks of ACORD
2008 ACORD CORPORATION. All rights reserved.

THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: FORM TITLE:

ADDITIONAL REMARKS
ADDITIONAL REMARKS SCHEDULE Page of
AGENCY CUSTOMER ID:

LOC #:

AGENCY

CARRIER NAIC CODE

POLICY NUMBER

NAMED INSURED
EFFECTIVE DATE:

MARSH USA LLC.

PROPERTY LIMITS: RISKS OF PHYSICAL LOSS/ DAMAGE SUBJECT TO POLICY LIMIT, DEDUCTIBLES AND TERMS. OTHER DEDUCTIBLES MAY APPLY PER POLICY TERMS AND CONDITIONS. 2 Portland
Insurance25 Certificate of Liability

ONE BOWERMAN DRIVE
NIKE, INC.

BEAVERTON, OR 97005
2 CN101825290
534
Administrative
Report
N.2., File # 26-1230 Meeting Date: 10/13/2026
To: MAYOR AND CITY COUNCIL
From: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER;

STEPHANIE MEYER, FINANCE DIRECTOR
TITLE

DISCUSSION AND POSSIBLE ACTION ON THE APPROVAL OF THE ISSUANCE OF THE CITY OF REDONDO BEACH GENERAL OBLIGATION BONDS (MEASURE FP) SERIES 2026 IN AN AMOUNT NOT TO EXCEED $93,350,000
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2610-086 A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF REDONDO BEACH AUTHORIZING AND DIRECTING THE ISSUANCE AND SALE OF AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $93,350,000 OF CITY OF

REDONDO BEACH, CALIFORNIA GENERAL OBLIGATION BONDS (MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026, AND APPROVING OTHER RELATED ACTIONS IN

CONNECTION THEREWITH

EXECUTIVE SUMMARY
On November 5, 2024, Redondo Beach voters approved Measure FP, authorizing the City to issue up to $93,350,000 in general obligation (GO) bonds to fund the replacement and rehabilitation of the City’s Police and Fire facilities (Projects). The results of the election were certified on December 10, 2024, with 71.41% of residents voting in favor of the ballot measure.

Since voter approval, the City has completed the initial strategic planning phase for the Projects and is currently engaged in preconstruction and design development work. Based on the most recent estimates, staff expects that the total cost of the Projects, including preconstruction, design development, administrative oversight, project management, design, temporary relocation, environmental testing, utilities, demolition, construction, final relocation, and other costs, plus contingency, will use the full $93,350,000 authorized through voter-approved Measure FP GO Bonds.

Approval of the proposed Resolution would authorize the issuance of the Measure FP GO Bonds to provide $93,350,000 in funding for the Projects, including the reimbursement to the City’s General Fund for certain Measure FP expenditures that occurred prior to bond issuance. In addition, a portion of bond proceeds will pay for the costs of issuing the Measure FP GO Bonds and the first interest payments. Starting in FY 2027-28, the City will pay Measure FP GO Bond debt service with property taxes levied and collected by Los Angeles County.

BACKGROUND
The City of Redondo Beach maintains a balanced budget as required by the City Charter.

Maintaining this balance limits the City’s ability to use its General Fund to make large investments in public infrastructure or to take on new debt service to cover the costs associated with borrowing

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public infrastructure or to take on new debt service to cover the costs associated with borrowing funds for capital financing. To that end, the City evaluated different funding options for the Projects and chose to pursue the issuance of GO bonds.

GO bonds are a form of long-term borrowing in which a City issues bonds that are repaid over many years with semi-annual debt service payments generated through increases to property taxes across the City. This is also known as an “ad valorem” tax because the total value of the tax increase is proportional to the assessed value (AV) of parcels in the City. Issuing GO bonds requires the City Council to pass a resolution proposing the GO bond issuance which specifies the purpose, amount, and estimated impact on property taxes for residents of the City. On August 6, 2024, the City passed Ordinance No. 3274-24 formalizing the authority and conditions under which the Measure FP GO Bonds may be issued and placing Measure FP on the ballot. On November 5, 2024, Redondo Beach voters approved Measure FP, authorizing the City to issue up to $93,350,000 in GO bonds to fund the Projects.

Following the election, the City began efforts to plan for and to engage the necessary services to execute construction of the Projects. To that end, on March 18, 2025, the City adopted a Resolution No. CC 2503-017 declaring its intent to reimburse certain expenditures from proceeds of GO bonds approved by the voters under Measure FP. On July 15, 2025, the City Council approved an Agreement for Project Services with Griffin Structures, Inc. (Griffin) to serve as the City’s owner’s representative and program manager for the Strategic Planning Phase of the Measure FP (Project) implementation.

Since that time, Griffin has provided professional services and subject matter expertise to advance the Project through the Strategic Planning Phase and the procurement phase of a progressive design build (PDB) process to complete the Projects. On July 7, 2026, the City Council approved an Agreement with Swinerton Builders, Inc. (Swinerton) for PDB services for Phase 1 of the Measure FP, Fire Stations 1 and 2 Subproject and an Agreement with Swinerton for PDB services for Phase 1 of the Measure FP, Police Facilities Subproject. The Projects are currently in Phase 1 Design and working towards the establishment of guaranteed maximum prices for each Subproject. To date, the City has incurred $1.5 million in costs related to the Projects.

Additionally, the City has engaged the services of Public Resources Advisory Group as municipal advisor, Nossaman LLP and Best Best & Krieger LLP co-bond counsel, Best Best & Krieger LLP as disclosure counsel, and U.S. Bank Trust Company, National Association (U.S. Bank) as fiscal agent for the issuance of the Measure FP GO Bonds. On August 18, 2026, the City Council approved the formation of the Measure FP Citizen’s Oversight Committee, which will review and report on project expenditures made from the proceeds of the Measure FP GO Bonds.

Summary of Financing
The proposed financing is in the form of GO bonds to be issued by the City of Redondo Beach. The City will enter into a Fiscal Agent Agreement with U.S. Bank who will assist with the administration of funds and the payment of debt service. The Measure FP GO Bonds will be structured with level annual debt service payments. Payments starting in FY 2027-28 will be paid from property taxes to be levied and collected by Los Angeles County on behalf of the City. The term of the Measure FP GO Bonds is 30 years, with the final property taxes to be levied in FY 2055-56. Interest on the Measure FP GO Bonds prior to the initial tax levy will be paid from proceeds of the bonds themselves. These provisions of the Measure FP GO Bonds are standard terms used for many GO bonds issued by California cities and school districts, including Redondo Beach Unified School

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bonds issued by California cities and school districts, including Redondo Beach Unified School District, and are also consistent with the assumptions used to prepare the repayment estimate included in Ordinance No. 3274-24 and appearing on the ballot seen by the voters at the time of the November 2024 election.

The City’s municipal advisor has prepared the following estimate with respect to the Measure FP GO Bonds, using market conditions as of October 6, 2026. The table below compares the new estimates to the available estimates provided during the adoption of Ordinance No. 3274-24.

Note that the actual interest cost, finance charges, amount of proceeds, total payment amount, and tax levy rates may vary from the estimates above. Market interest rates and changes in assessed valuation over time, which determine these results, are affected by numerous uncontrollable and unpredictable factors. If approved, limitations on the Measure FP GO Bonds reflect only by the not-to -exceed aggregate principal amount of $93,350,000, the not-to-exceed true interest cost (TIC) of 7%, and the final maturity being no longer than 30 years from the date of issuance, as specified in the attached Resolution.

Pending approval of the Resolution by the City Council, the following actions would be undertaken by staff and the City’s representatives to offer the GO bonds for sale:
· October 14, 2026-Publish intention to sell bonds
· October 15, 2026-Publish Preliminary Offer Statement and Notice of Sale · October 27, 2026 Bid Opening
· November 10, 2026 Bid Closing
Credit Rating
In preparing for the potential issuance of the Measure FP GO Bonds, City staff and the City’s municipal advisor met with S&P Global Ratings (S&P) to discuss the underlying credit of the bonds.

As part of that process, the current financial condition of the City was also discussed, as S&P’s methodology for assigning credit ratings for GO bonds include consideration of the issuer’s general financial condition. Following those discussions, S&P assigned a credit rating of “AA+” with a stable outlook for the Measure FP GO Bonds and affirmed the credit rating of the City’s outstanding lease revenue bonds of “AA” also with a stable outlook. In assigning their credit rating, S&P issued a report discussing the creditworthiness of the City. Highlights of that report include:

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· “…The rating reflects…Redondo Beach’s robust, high-income economy…, conservative fiscal management…, and a reserve policy that has been maintained above its formal policy… · The fiscal 2027 budget is balanced and there are no material draws planned for reserves… · Despite the notable cushion, if continued draws on their reserves occur, it could pressure the rating as the current level is below similar rated peers… · Stable outlook reflects our view that Redondo Beach will maintain a sound operating profile supported by its robust tax base and prudent management…” Competitive Bid Process
Staff recommends the City sell its Measure FP GO Bonds through a competitive bid process via a public auction. In a competitive bid process, the City publishes (i) a Notice of Intention to Sell Bonds to notify potential bidders and other interested parties and (ii) a longer Notice of Sale to describe the terms of the sale, including the date, the time and method for submitting their bid. Bidders offer interest rates and a purchase price for all of the Measure FP GO Bonds, following the rules set forth in the Notice of Sale. Once an offer is accepted, the City would enter into a contract with the bidder offering the lowest effective borrowing cost, or TIC, is awarded the bonds. After receiving the award, the bidder will generally resell the bonds to investors at the bidder’s own risk.

Staff and the City’s Municipal Advisor also considered a negotiated sale process. In a negotiated sale, an issuer would select an underwriter prior to the sale. The underwriter would work with the financing team to create the terms of the financing. The underwriter would then offer the bonds to investors. After aggregating investor interest, the lead underwriter would negotiate with the issuer and finally make an offer to purchase the bonds.

Based on the fact that the Measure FP GO Bonds are general obligation bonds, the City’s high credit rating, and the City’s main priority, which is to achieve the lowest interest rate for the bonds and thereby the lowest tax rates for Redondo Beach property owners, the industry best practice is to use a competitive sale process as outlined by guidelines of both the Government Finance Officer’s Association (GFOA) guidelines and the California Debt and Investment Advisory Commission (CDIAC). Additionally, academic research shows a competitive sale is expected to achieve the lowest interest rate for the City for general obligation bonds with the size and characteristics similar to the Measure FP GO Bonds. In comparison, because the selection of the underwriter occurs before the actual pricing is known in a negotiated sale, it cannot be known whether the selected underwriter would be the firm that would offer the lowest effective borrowing cost.

Single Issuance
Under Measure FP, the maximum amount of the GO Bonds which may be issued is $93,350,000.

The GO Bonds may be issued in one or more issuances. Staff recommends that this amount be issued in a single issuance for several reasons. First, the identified project cost is expected to use this entire amount. Second, with the design-build team identified, it is expected that Project-related expenditures will ramp up significantly. The City had been paying smaller amounts of Project costs from its General Fund, but additional “lending” by the General Fund, at the anticipated pace and level required to advance the project in a timely manner, could impact reserves. Third, the timeline for the issuance of GO Bonds, including the effort undertaken to prepare the documents attached to this report, require three to five months. By issuing the full amount, it eliminates any risk that funding availability would lead to a delay in the delivery of the Projects. Fourth, there is currently no expectation that interest rates will decline significantly over the period of time during which the

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N.2., File # 26-1230 Meeting Date: 10/13/2026
expectation that interest rates will decline significantly over the period of time during which the Project is being constructed. Rather, the City’s Municipal Advisor has advised that the current market consensus is for the Federal Reserve to increase interest rates during its next one or two meetings.

Fifth, short-term interest rates are attractive, and staff expects to invest Measure FP GO Bond proceeds to earn interest to help fund the Projects and/or Measure FP GO Bond costs. Sixth, each issuance of bonds requires staff effort and incurs fixed costs. Economies of scale would be achieved by issuing the entire authorization at one time.

Resolution and Supporting Documents
As discussed above, this report recommends that Council adopt the attached Resolution authorizing bond issuance. The report also includes, and Council action will approve along with the report, a number of supporting documents to accompany the bond and required to fulfill legal and other requirements associated with the bond sale. These are included as attachments to the report and described briefly below:
· Resolution Approving the Issuance of Measure FP GO Bonds: This resolution to be adopted by the City Council authorizes the bonds, approves the sale process, and commits the City to ongoing obligations (e.g., setting tax rates, using proceeds, arbitrage rules, continuing disclosure, etc.).
· Fiscal Agent Agreement: Sets the terms for issuing, administering, paying, and recordkeeping for the bonds that USBank will undertake. It governs the project fund disbursement and debt service payment mechanisms.
· Preliminary Official Statement: A legal disclosure document prepared by the City as the issuer for a new offering, functioning similarly to a corporate prospectus. This document includes information pertinent to investors, including bond terms and structure, security and repayment source, issuer demographics, financial statements, legal and tax opinions, and credit ratings · Appendix A - Preliminary Official Statement: Contains detailed information regarding the City’s finances, including the most recent audited financial statements and relevant economic data. · Notice of Intention to Sell Bonds: Under California Constitution, most municipalities are required to notify the public about issuing bonds. This document meets that requirement and will be published in a local newspaper and/or the Bond Buyer-the municipal finance industry daily newspaper.
· Official Notice of Sale: Controls the competitive auction process, specifying the terms and obligations for both the City and bidders. This document will be published along with the Preliminary Official Statement (POS) to establish the sale process. · Continuing Disclosure Agreement: Establishes the terms for the City’s required ongoing reporting to investors related to the Measure FP GO Bonds. This generally consists of important information about the bonds that arises after the initial issuance, reflects the financial health or operating condition of the City over time, or the occurrence of specific events after issuance that may have an impact on the ability of the issuer to repay the bonds, the value of the bonds if it is bought or sold prior to its maturity, the timing of repayment of principal, and any number of other key features of the bonds. For the Measure FP GO Bonds, the City will report on details related to the City’s assessed value, in addition to its regular financial statements.

The City’s municipal advisor, along with City staff, will discuss the structure, market conditions, credit rating process, use of a competitive bid process related to the Measure FP GO Bonds, required

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N.2., File # 26-1230 Meeting Date: 10/13/2026
documents and next steps as part of the presentation of this item on October 13th.

COORDINATION
Transaction support has been provided by Public Resources Advisory Group as the City’s municipal advisor. Additional transaction team members include Best Best & Krieger LLP (co-bond counsel and disclosure counsel); Nossaman LLP (co-bond counsel); and U.S. Bank Trust Company, National Association (fiscal agent). The City Attorney’s Office and City Treasurer’s Office coordinated with the City Manager’s Office and Financial Services Department in preparing this report.

FISCAL IMPACT
Adoption of the recommended Resolution and approval of Measure FP GO Bond issuance will result in the City’s receiving $93,350,000 of proceeds with which to pay for the costs of the Public Safety Facility Projects, as outlined in Ordinance 3274-24. A portion of these proceeds would be used to reimburse approximately $1.5 million of expenditures for the Projects, which have already been made by the City. Additionally, the City would be reimbursed $53,150.40 related to the cost of the Measure FP election (representing one-third of the total election cost supporting three measures). The debt service on the Measure FP GO Bonds will be paid primarily from property taxes to be levied on the City’s property owners over the life of the bonds. The levy will be set as to be sufficient to pay the full amount of the final debt service. Ongoing administrative costs related to the Measure FP GO Bonds will be included in future annual budgets.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Reso - No. 2610-086 Approving the Issuance of Measure FP GO Bonds · Fiscal Agent Agreement
· Preliminary Official Statement
· Appendix A - Preliminary Official Statement
· Notice of Intention to Sell Bonds
· Official Notice of Sale
· Continuing Disclosure Agreement
· S&P Rating Report

Page 6 of 6 ends

540
RESOLUTION NO. CC-2610-086

IISSUANCE AND SALE OF GO BONDS
PAGE NO. 1
RESOLUTION NO. CC-2610-086

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

AUTHORIZING AND DIRECTING THE ISSUANCE AND SALE OF AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $93,350,000 OF CITY

OF REDONDO BEACH, CALIFORNIA GENERAL OBLIGATION BONDS
(MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026, AND

APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH WHEREAS, the City of Redondo Beach (the “City”) is a charter city duly organized and existing under the laws of the State of California; and
WHEREAS, as discussed in the City’s Capital Improvement Program, the City desires to undertake the acquisition, construction, reconstruction, rehabilitation or replacement of the City’s police and fire facilities (together, the “Improvements”); and WHEREAS, the City has outgrown its aging police and fire facilities, which were built in the 1950s when the City’s population was approximately one-third of the current population; and WHEREAS, the City’s existing fire stations were constructed in 1959 for a total staff of 39 firefighters serving a population of 50,000, and today the fire department responds to over 8,000 emergency calls annually with a total staff of 69 serving a population of 70,000 in the same facilities, which lack adequate space for personnel and paramedic equipment, hindering operational efficiency; and
WHEREAS, on June 28, 2024, the Los Angeles County Civil Grand Jury issued a report on Earthquake Safety Readiness directing cities to prioritize government building resilience and to initiate retrofitting and rebuilding of these buildings to ensure earthquake resilience; and WHEREAS, the City falls within a region that is susceptible to earthquakes due to its proximity to several active fault lines, including the Palos Verdes Fault, the Newport-Inglewood Fault and the San Andreas Fault, and the City is part of the broader Los Angeles area classified as Seismic Zone 4 – the highest seismic risk zone in the United States, indicating a high potential for significant seismic activity; and
WHEREAS, the City’s 911 emergency communication center, police station and fire stations are critical infrastructure and critical components of the emergency response system and must adhere to stringent building codes designed to enhance earthquake resilience and ensure readiness in a disaster, with requirements for seismic retrofitting and/or replacement of older buildings to enhance the earthquake resilience of these buildings as the first points of contact in emergencies, providing immediate response and coordination in any disaster; and WHEREAS, the fire stations need repair, replacement and upgrades, including but not limited to addressing structural cracking, seismic retrofitting, mold and asbestos abatement and removal, outdated plumbing and electrical systems, and adding or updating female sleeping quarters and restrooms to help recruit and retain firefighters and paramedics; and WHEREAS, the police station, which was constructed in 1957 for a total staff of 48, lacks adequate space for current personnel and equipment, hindering operational efficiency for the current roster of approximately 240 Police Department employees; and 541
RESOLUTION NO. CC-2610-086

IISSUANCE AND SALE OF GO BONDS
PAGE NO. 2
WHEREAS, the existing police station needs repair, replacement and upgrades, including but not limited to, mold, asbestos and lead abatement and removal, outdated plumbing and electrical systems, meeting California Structural Performance Category requirements to withstand a strong earthquake, addressing significant roof leaks during storms, updating inadequate restrooms to meet ADA requirements, and updating facilities to utilize more efficient, economical and environmentally friendly energy systems; and
WHEREAS, a new police station will accommodate space for new state-of-the-art technology to enhance the communications center, drone operations, jail operations, and a more contemporary Emergency Operations Center to keep the City secure during the management of emergency incidents; and
WHEREAS, a new police station will incorporate modern security measures to better protect officers and arrestees, allow for community integration and meeting spaces, and foster positive relationships between law enforcement and residents to better accommodate the needs of the community; and
WHEREAS, the undertaking of the Improvements by the City constitutes the acquisition, construction, reconstruction, rehabilitation and/or replacement of “municipal improvements” and “public infrastructure” because the Improvements are (1) part of the structures, facilities and equipment owned and operated under the control of the City, (2) part of the basic, underlying features of the City’s physical landscape, community identity and organization, (3) once acquired or completed, open to the public for use and/or benefiting the public, and (4) necessary or convenient to carry out the objects, purposes and powers of the City; and
WHEREAS, by Resolution No. CC-2407-060, adopted by the City Council (the “City Council”) of the City of Redondo Beach (the “City”) at a meeting held July 30, 2024, it was determined and declared that the public interest and necessity demand the acquisition, construction, reconstruction, rehabilitation or replacement of the Improvements; and
WHEREAS, by Ordinance No. 3274-24 passed by the City Council at a meeting held August 6, 2024, and signed by the Mayor on August 6, 2024 (the “Bond Ordinance”), the City Council duly called a Special Municipal Election consolidated with Los Angeles County to be held and conducted November 5, 2024 (the “Bond Election”), for the purpose of submitting to the qualified voters of the City a proposition to incur bonded indebtedness of the City in the aggregate principal amount not to exceed $93,350,000 to finance the acquisition, construction, reconstruction, rehabilitation or replacement of the Improvements (collectively, the “Project”); and
WHEREAS, the Bond Election was held in the City on November 5, 2024, and thereafter canvassed pursuant to law, at which the following bond proposition (“Measure FP”) summarized as follows was submitted to the electors of the City:

IISSUANCE AND SALE OF GO BONDS
PAGE NO. 3
City voting on such measure, thereby adopting the Bond Ordinance, and the declaration of such Bond Election results was made by the City Council pursuant to its adoption of Resolution No. CC-2412-116 at a meeting held December 10, 2024; and
WHEREAS, the City Council has determined, and does hereby declare, that it is necessary and desirable that all of such bonds designated generally as “City of Redondo Beach, California General Obligation Bonds (Measure FP Public Safety Improvements) Series 2026” (the “Bonds”) in the aggregate principal amount not to exceed $93,350,000, representing the total amount authorized, be issued and sold in a single series on a tax-exempt basis, for the purposes authorized and on the conditions set forth in this Resolution to finance a portion of the costs of the Project; and WHEREAS, the Bonds will be payable from proceeds of the annual tax levy, as provided herein; and
WHEREAS, the Bonds are being issued pursuant to (i) this Resolution duly adopted by the City Council; (ii) the provisions of Article 1 of Chapter 4 of Division 4 of Title 4 (commencing with Section 43600), of the California Government Code, and the provisions of Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code (collectively, the “Bond Law”); (iii) the Charter of the City (the “Charter”), (iv) the Bond Ordinance, and (v) the Bond Election; and WHEREAS, there shall be delivered a certificate of a duly authorized officer of the City, concurrently with the issuance of the Bonds stating that the outstanding bonded indebtedness of the City, including the Bonds to be issued, will not exceed 15 percent of the total assessed valuation of property within the City in compliance with the provisions of Section 17.11 of the Charter; and WHEREAS, the City Council recognizes that Public Resources Advisory Group, Inc. has been engaged to act as Municipal Advisor (“Municipal Advisor”) to the City and Best, Best & Krieger LLP has been engaged as bond counsel (“Bond Counsel”) and disclosure counsel (“Disclosure Counsel”) to the City with respect to the Bonds; and
WHEREAS, the City Council desires U.S. Bank Trust Company, National Association, to serve as the fiscal agent (the “Fiscal Agent”) for the Bonds, pursuant to a Fiscal Agent Agreement (“Fiscal Agent Agreement”) by and between the City and the Fiscal Agent; and WHEREAS, it is contemplated that the Bonds will be offered pursuant to a Preliminary Official Statement (the “Preliminary Official Statement”) and an Official Notice of Sale (the “Official Notice of Sale”); and
WHEREAS, there have been submitted to and are on file with the City Clerk proposed forms of the Preliminary Official Statement, the Fiscal Agent Agreement, the Official Notice of Sale, and a Continuing Disclosure Agreement (as described in the Preliminary Official Statement, the “Continuing Disclosure Agreement”), all relating to the Bonds proposed to be issued and sold; WHEREAS, Section 5852.1 of the Government Code requires that the City Council obtain from an underwriter, financial advisor or private lender and disclose, prior to authorization of the issuance of bonds with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the bonds, (b) the sum of all fees and charges paid to third parties with respect to the bonds, (c) the amount of proceeds of the bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the bonds, and (d) the sum total of all debt service payments on the bonds calculated to the final maturity of the bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds; and in compliance with said Section 5852.1, the City Council has obtained 543
RESOLUTION NO. CC-2610-086

IISSUANCE AND SALE OF GO BONDS
PAGE NO. 4
from the Municipal Advisor the required good faith estimates for the Bonds as set forth in Appendix A attached to this Resolution, and such information is hereby disclosed and made public; WHEREAS, the City Council desires to ratify and confirm the findings and determinations of Resolution No. CC-2503-017, entitled “A Resolution of the City Council of the City of Redondo Beach Declaring Its Intent to Reimburse Certain Expenditures from Proceeds of General Obligation Bonds Approved by the Voters of the City of Redondo Beach, adopted March 18, 2025 (the “Reimbursement Resolution”); and
WHEREAS, all acts, conditions and things required by the Constitution and laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the transactions authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such transactions for the purpose, in the manner and upon the terms herein provided.

NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF REDONDO BEACH AS FOLLOWS:

Section 1. Declaration and Findings of City Council. The City Council hereby specifically finds and declares that the actions authorized hereby constitute and are with respect to public affairs of the City, and that the statements, findings and determinations of the City set forth herein, in the preambles above and in the documents approved herein are true and correct.

Section 2. Conditions Precedent. All conditions, things and acts required by law to exist, to happen and to be performed precedent to the adoption of this Resolution authorizing the issuance of the Bonds exist, have happened and have been performed in due time, form and manner in accordance with applicable law, and the City is now authorized pursuant to the Charter and applicable law to incur indebtedness in the manner and form provided in this Resolution.

Section 3. Issuance and Sale of the Bonds; Determination of Certain Terms; Designation. The City Council authorizes the issuance and sale of not to exceed $93,350,000 in aggregate principal amount of Bonds to be designated as “City of Redondo Beach, California General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026,” for the purposes set forth in the Bond Ordinance and Measure FP approved by the voters at the Bond Election.

The City Manager, City Treasurer, or Finance Director of the City, or a designee thereof (each, an “Authorized Officer”) is authorized to determine, for the Bonds, the sale date, the interest rates, the definitive principal amount, the maturity dates and the redemption dates, if any, and the terms of any optional or mandatory redemption, subject to the other specific provisions of this Resolution, including the following terms and conditions: (a) the Bonds shall not have a true interest cost (as such term is defined in the Official Notice of Sale for the Bonds) in excess of 7% per annum; and (b) the Bonds may have a duration up to 30 years from their date of issuance. Any Authorized Officer is hereby authorized to modify the general designation of the Bonds if in his or her sole discretion a different designation is in the best interest of the City for administrative, marketing or descriptive purposes.

Section 4. Authentication and Registration. The Fiscal Agent Agreement for the Bonds shall set forth the form of Bond, with such necessary or appropriate variations, omissions and insertions as may be permitted by resolution. “CUSIP” identification numbers may be imprinted on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds, and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and to pay for the Bonds. In addition, failure on the part of the City to use such CUSIP numbers in any notice 544
RESOLUTION NO. CC-2610-086

IISSUANCE AND SALE OF GO BONDS
PAGE NO. 5
to owners of the Bonds shall not constitute an event of default or any violation of the City’s contract with such owners and shall not impair the effectiveness of any such notice.

The Bonds shall be signed by the Mayor of the City (the “Mayor”) and countersigned by the City Clerk of the City as provided in the Fiscal Agent Agreement. In case any such officers whose facsimile signature or countersignature appears on a Bond shall cease to be such officer before the delivery of such Bond to the purchaser, such signature or countersignature shall nevertheless be valid and sufficient for all purposes as if said officers had remained in office until the delivery of such Bond.

The officers of the City are directed to cause the Bonds to be prepared in sufficient quantity for delivery to or for the account of the purchaser of the Bonds, and the Finance Director is directed to cause the blanks in the Bonds to be completed in accordance with this Resolution and the Bond Award (as defined below), to procure their execution by the proper officers of the City and authentication by the Fiscal Agent as provided in the Fiscal Agent Agreement, and to deliver the Bonds when so executed and authenticated to the purchaser in exchange for the purchase price, all in accordance with this Resolution and the Fiscal Agent Agreement. Only Bonds bearing a certificate of authentication and registration executed by the Fiscal Agent shall be valid or obligatory for any purpose or entitled to the benefits of this Resolution.

Books for the registration and transfer of the Bonds shall be kept by the Fiscal Agent as provided in the Fiscal Agent Agreement. An Authorized Officer and the Fiscal Agent may treat the registered owner of each Bond as its absolute owner for all purposes, and the Authorized Officer and the Fiscal Agent shall not be affected by any notice to the contrary.

Section 5. Transfer or Exchange and Registration of Bonds. Any Bond may be transferred or exchanged in accordance with its terms and the terms of the Fiscal Agent Agreement. Each Bond shall be registered in accordance with the terms of the Fiscal Agent Agreement.

Section 6. Terms of the Bonds; Redemption of the Bonds. (a) Date of the Bonds. The Bonds shall be dated the date of their delivery or such other date (“Dated Date”) as is specified in the Bond Award.
(b) Denominations. The Bonds shall be issued in fully registered form, without coupons, in the denomination of $5,000 principal amount or any integral multiple thereof, provided that no Bond shall mature on more than one maturity date.
(c) Maturity. The Bonds shall mature on the date or dates, in each of the years, and in such principal amounts as shall be set forth in the Bond Award and the Fiscal Agent Agreement. (d) Payment of the Bonds. The principal and any redemption premium of the Bonds shall be payable in lawful money of the United States of America to the owner thereof, upon the surrender thereof at the office of the Fiscal Agent designated for the purpose, as provided in the Fiscal Agent Agreement. The interest on the Bonds shall be payable in like lawful money to the person whose name appears on the bond registration books of the Fiscal Agent as the person in whose name such Bond is registered thereof as of the close of business on the applicable record date for each interest payment date, whether or not such day is a Business Day, as provided in the Fiscal Agent Agreement. “Business Day” shall mean a day which is not (a) a Saturday, Sunday or legal holiday in the State of California, (b) a day on which banking institutions in the State of California, or in any state in which the office of the Fiscal Agent is located, are required or authorized by law (including executive order) to close, or (c) a day on which the New York Stock Exchange is closed. 545
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(e) Redemption of the Bonds. The Bonds are subject to optional and mandatory sinking fund redemption prior to their respective stated maturity dates as set forth in the Fiscal Agent Agreement and in the Bonds.

Section 7. Appointment of Depositories and Other Agents. An Authorized Officer is authorized and directed to appoint one or more depositories as he or she may deem desirable. The City will not have any responsibility or obligation to any purchaser of a beneficial ownership interest in any Bonds or to any participants in such a depository with respect to (a) the accuracy of any records maintained by such securities depository or any participant therein; (b) any notice that is permitted or required to be given to the owners of Bonds under this Resolution; (c) the selection by such securities depository or any participant therein of any person to receive payment in the event of a partial redemption of Bonds; (d) the payment by such securities depository or any participant therein of any amount with respect to the principal or redemption premium, if any, or interest due with respect to Bonds; (e) any consent given or other action taken by such securities depository as the owner of Bonds; or (f) any other matter.

The Depository Trust Company, New York New York (“DTC”) is appointed as depository for the Bonds. The Bonds shall be initially issued in book-entry form. Upon initial issuance, the ownership of each Bond shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. So long as each Bond is registered in book-entry form, each Bond shall be registered in the name of Cede & Co. or in the name of such successor nominee as may be designated from time to time by DTC or any successor as depository as provided in the Fiscal Agent Agreement.

An Authorized Officer is also authorized and directed to appoint one or more agents as he or she may deem necessary or desirable, to the extent permitted by applicable law and under the supervision of the Authorized Officer, such agents may serve as paying agent, fiscal agent, escrow agent or registrar for the Bonds or may assist the Authorized Officer in performing any or all of such functions and such other duties as the Authorized Officer shall determine. Such agents shall serve under such terms and conditions as the Authorized Officer shall determine. An Authorized Officer may remove or replace agents appointed pursuant to this paragraph at any time.

An Authorized Officer is also authorized and directed to appoint a rebate calculation agent as he or she may deem necessary or desirable. Such agent shall serve under such terms and conditions as the Authorized Officer shall determine. An Authorized Officer may remove or replace such agent appointed pursuant to this paragraph at any time.

Section 8. Tax Levy; Pledge of Tax Revenues Fund and Bond Fund. (a) Tax Levy. For the purpose of paying the principal of and interest on the Bonds, the City Council at the time of fixing the general tax levy shall fix, and in the manner provided for such general tax levy, levy and collect annually until the Bonds are paid, or until there shall be a sum set apart for that purpose in the treasury of the City sufficient to meet all sums coming due for payment of principal of and interest on the Bonds, a tax sufficient to pay the annual interest on the Bonds as the same becomes due and also such part of the principal thereof as shall become due before the proceeds of a tax levied at the time for making the next general tax levy can be made available for the payment of such interest or principal; provided, however, that in fixing such tax levy for each fiscal year, the City Council shall take into account amounts then on deposit in the Tax Revenues Fund pursuant to this paragraph (a), if such amounts will be available to pay debt service on the Bonds. Such tax shall be in addition to all other taxes levied for City purposes, shall be collected at the time and in the same manner as other taxes of the City are collected, and shall be used only for the payment of the Bonds and the interest thereon. All taxes collected pursuant to this 546
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paragraph (a) shall be deposited forthwith in a special fund to be designated as the “General Obligation Bonds (Measure FP Public Safety Improvements) Tax Revenues Fund” (the “Tax Revenues Fund”). The Tax Revenues Fund and all accounts therein shall be established, maintained and administered by an Authorized Officer pursuant to this Resolution and the Fiscal Agent Agreement. An Authorized Officer shall cause amounts on deposit in the Tax Revenues Fund to be transferred to the Fiscal Agent for payment of the principal of, premium, if any, and interest on outstanding Bonds when due. The Tax Revenues Fund shall be kept separate and apart from all other funds, and each account therein shall be kept separate and apart from all other accounts. Additional accounts and subaccounts within the Tax Revenues Fund may be established.

Bond Fund. Pursuant to this Section 8(a) there shall be established a special fund to be designated as the “General Obligation Bonds (Measure FP Public Safety Improvements) Bond Fund” (the “Bond Fund”). The Bond Fund and all accounts therein shall be maintained and administered by the Fiscal Agent pursuant to this Resolution and the Fiscal Agent Agreement. The Bond Fund shall be kept separate and apart from all other funds, and each account therein shall be kept separate and apart from all other accounts. Additional accounts and subaccounts within the Bond Account may be established. The Fiscal Agent shall deposit in the Bond Fund from the proceeds of sale of the Bonds, all or a portion of the moneys received on account of original issue premium and interest accrued on the Bonds to the date of payment of the purchase price thereof as directed by the City, and such other moneys, if any, as may be specified in the Fiscal Agent Agreement. So long as any of the Bonds are outstanding, moneys in the Bond Fund shall be used and applied by the Fiscal Agent solely for the purpose of paying the principal of and interest on the Bonds as such principal and interest shall become due and payable, or for purchase of Bonds; provided, however, that when all of the principal of and interest on the Bonds have been paid, any moneys then remaining in such Bond Fund shall be transferred to the City for any legally permitted purpose.

Budget and Appropriations. The City Council shall take such actions annually as are necessary or appropriate to cause the debt service on the Bonds due in any fiscal year to be included in the budget for such fiscal year and to make the necessary appropriations therefor.
(b) Pledge. The Tax Revenues Fund and the Bond Fund and all accounts and amounts on deposit therein are hereby pledged for the payment of the principal of and interest on the Bonds when and as the same become due, including the principal of any term Bonds required to be paid upon the mandatory sinking fund redemption thereof. In addition, the payment of such principal and interest shall be secured by the statutory lien of California Government Code Section 53515, to the extent applicable to the amounts on deposit in the Bond Fund. Each and every Bond issued under this Resolution shall be equally and ratably secured by the pledge effected in this Section 8(b), the foregoing statutory lien, and the taxes collected pursuant to Section 8(a).

Section 9. Administration and Disbursements From Bond Fund. (a) Interest. On or before five (5) Business Days prior to [March] 1 and [September 1] in each year that any of the Bonds are outstanding, an Authorized Officer shall transfer from the Tax Revenues Fund to the Fiscal Agent to set aside in a special account to be designated as the “Interest Account,” which shall be an account within the Bond Fund, an amount which will be equal to the aggregate amount of the interest becoming due and payable on each of the Bonds outstanding on the such Interest Payment Date, for the purpose of paying the interest 547
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on the Bonds.
(b) Principal. On or before five (5) Business Days prior to [September] 1 in each year that any of the Bonds are outstanding, an Authorized Officer shall transfer from the Tax Revenues Fund to the Fiscal Agent to set aside in a special account to be designated as the “Principal Account,” which shall be an account within the Bond Fund, an amount which will be equal to the principal on the Bonds outstanding that will become due and payable on such [September] 1, including those Bonds subject to mandatory redemption on such date pursuant to the provisions of the Fiscal Agent Agreement, for the purpose of paying the principal and mandatory redemption of the Bonds.

All moneys in the Bond Fund shall be used and withdrawn by the Fiscal Agent solely for the purpose of paying the principal of (including mandatory redemption), premium, if any, and interest on the Bonds as the same shall become due and payable.

Section 10. Capital Project Fund. There is hereby established a special project fund to be designated as the “General Obligation Bonds (Measure FP Public Safety Improvements) Capital Project Fund” (the “Capital Project Fund”), and established therein a special account to be designated as the “General Obligation Bonds (Measure FP Public Safety Improvements) Costs of Issuance Account of the Capital Project Fund” (the “Costs of Issuance Account”), and a special account to be designated as the “General Obligation Bonds (Measure FP Public Safety Improvements) Project Account of the Capital Project Fund” (the “Project Account”). The Capital Project Fund shall be maintained by the Fiscal Agent, as a separate fund, segregated and distinct from all other funds and accounts. The Fiscal Agent may establish such accounts and subaccounts within the Capital Project Fund, in addition to the Costs of Issuance Account and the Project Account, as may be necessary or convenient in connection with the administration of the Project or the Bonds.

All of the proceeds of the sale of the Bonds (excluding premium and accrued interest received thereon, unless otherwise directed by an Authorized Officer) shall be deposited by the Fiscal Agent to the credit of the Project Account within the Capital Project Fund and shall be applied exclusively to the objects and purposes of the Project in accordance with the Fiscal Agent Agreement.

When such objects and purposes have been accomplished, any moneys remaining in the Project Account of the Capital Project Fund, shall be transferred to the Bond Fund established pursuant to Section 8 and applied to the payment of the principal of and interest on the Bonds.

A portion of the premium and accrued interest received on the Bonds as directed by an Authorized Officer shall be deposited by the Fiscal Agent to the credit of the Costs of Issuance Account within the Capital Project Fund. Amounts in the Costs of Issuance Account may be applied to the payment of costs of issuance of the Bonds, including, without limitation, costs of the Bond Election, underwriter’s discount, bond and financial printing expenses, mailing and publication expenses, rating agency fees, and the fees and expenses of fiscal agents, paying agents, registrars, financial consultants, the Municipal Advisor, Bond Counsel and Disclosure Counsel, in accordance with the provisions of the Fiscal Agent Agreement.

Section 11. Defeasance Provisions. Payment of all or any portion of the Bonds may be provided for prior to such Bonds’ respective stated maturities as set forth in Section 4.03 of the Fiscal Agent Agreement.

Section 12. Tax Covenants.
(a) Definitions. When used in this Section, the following terms have the following meanings:
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“Closing Date” means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor.
“Code” means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date.
“Computation Date” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Final Computation Date” has the meaning set forth in Section 1 148-3(e)(2) of the Regulations.
“Gross Proceeds” means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Bonds.
“Investment” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Nonpurpose Investment” means any investment property, as defined in Section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. “Rebate Amount” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Regulations” means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and Section 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced.
“Yield” of:
(i) any Investment has the meaning set forth in Section 1.148-5 of the Regulations; and
(ii) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations.
(b) Not to Cause Interest to Become Taxable. The City shall neither use, nor permit the use of, or nor omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in Section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section 12. (c) No Private Use or Private Payments. Except as permitted by Section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the final payment on the Bonds:
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(i) exclusively own, operate and possess all property, the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different from those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and
(ii) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by Section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be “loaned” to a person or entity if: (i) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (ii) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (iii) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Higher Yield. Except to the extent permitted by Section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final stated maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the Yield of any Investment acquired with Gross Proceeds, whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federally Guaranteed. Except to the extent permitted by Section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Reporting. The City shall timely file the information required by Section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe.
(h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in Section 148(f) of the Code and the Regulations and rulings thereunder:
(i) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last outstanding Bond is discharged. However, to the extent permitted by law, the 550
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City may commingle Gross Proceeds of the Bonds with other money of the City; provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith.
(ii) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in Section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the Final Computation Date. (iii) As additional consideration for the purchase of the Bonds by the initial purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to ensure the excludability of the interest thereon from gross income for federal income tax purposes, the City shall pay to the United States the amount that when added to the future value of previous rebate payments made for the Bonds equals (A) in the case of a Final Computation Date, 100% of the Rebate Amount on such date; and (B) in the case of any other Computation Date, 90% of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (iv) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (ii) and (iii) of this paragraph (h), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within 180 days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations.
(i) Not to Divert Arbitrage Profits. Except to the extent permitted by Section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the final payment on the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to paragraph (h) above because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm’s length and had the Yield of the Bonds not been relevant to either party. (j) Elections. The City directs and authorizes an Authorized Officer to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Tax Certificate or similar or other appropriate certificate, form or document.

Section 13. Supplemental Resolutions. For any one or more of the following purposes and at any time or from time to time, a supplemental resolution of the City may be adopted, which, without the requirement of consent of the owners of the Bonds, shall be fully effective in accordance with its terms:
(a) To add to the covenants and agreements of the City in this Resolution, other covenants and agreements to be observed by the City which are not contrary to or inconsistent with this Resolution as theretofore in effect;
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(b) To add to the limitations and restrictions in this Resolution, other limitations and restrictions to be observed by the City which are not contrary to or inconsistent with this Resolution as theretofore in effect;
(c) To confirm, as further assurance, any pledge under, and the subjection to any lien or pledge created or to be created by this Resolution as then in effect, of any moneys, securities or funds, or to establish any additional funds or accounts to be held under this Resolution; (d) To cure any ambiguity, supply any omission, or cure or correct any defect or inconsistent provision in this Resolution; or
(e) To make such additions, deletions or modifications as shall not be materially adverse to the owners of the Bonds.

Any modification or amendment of this Resolution and of the rights and obligations of the City and of the owners of the Bonds, in any particular, may be made by a supplemental resolution, with the written consent of the owners of at least a majority in aggregate principal amount of the Bonds outstanding at the time such consent is given (except as provided in the preceding paragraph). No such modification or amendment shall permit a change in the terms or maturity of the principal of any outstanding Bonds or of any interest payable thereon or a reduction in the principal amount thereof or in the rate of interest thereon, or shall reduce the percentage of Bonds the consent of the owners of which is required to effect any such modification or amendment, or shall reduce the amount of moneys for the repayment of the Bonds, without the consent of all the owners of such affected Bonds.

Section 14. Fiscal Agent Agreement. The form of the Fiscal Agent Agreement presented to this meeting and on file with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed, for and on behalf of the City, to execute and deliver said Fiscal Agent Agreement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.

Section 15. Continuing Disclosure Agreement. The form of the Continuing Disclosure Agreement presented to this meeting and on file with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver said Continuing Disclosure Agreement in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the acknowledgement and delivery thereof.

Section 16. Sale of the Bonds. An Authorized Officer is hereby authorized to cause the Bonds to be sold by competitive sale under an Official Notice of Sale.

The form of the Official Notice of Sale presented to this meeting and on file with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed to conduct the competitive sale of the Bonds in accordance with the Official Notice of Sale in substantially said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the acknowledgement and delivery thereof.

An Authorized Officer is hereby authorized to award the Bonds to the responsible bidder whose bid (i) is timely received and conforms to the Official Notice of Sale, except to the extent informalities and irregularities are waived by the City as permitted by the Official Notice of Sale; and (ii) represents the lowest true interest cost to the City in accordance with the procedures described in the Official Notice of Sale (the “Bond Award”). The Bond Award, if made, shall be set forth in a certificate signed by an Authorized Officer setting forth the terms of the Bonds and the original purchasers. 552
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Pursuant to Section 53692 of the Government Code, Public Resources Advisory Group, Inc., the City’s Municipal Advisor, is hereby authorized and directed to cause a notice of the intention to sell the Bonds to be published and disseminated among prospective bidders of the Bonds, in form and substance acceptable to said firm, in the manner required by applicable law.

Section 17. Official Statement. The form of the preliminary Official Statement of the City relating to the Bonds presented to this meeting and on file with the City Clerk is hereby approved in substantially said form, with such changes therein as an Authorized Officer may require or approve. An Authorized Officer is hereby authorized to certify that the preliminary Official Statement, with such changes therein as the officer so certifying shall approve, are, as of their respective dates “deemed final” for purposes of Rule 15c2-12 of the Securities and Exchange Commission. The Authorized Officer is hereby authorized to execute for and on behalf of the City the final Official Statement, in substantially the form of the preliminary Official Statement, with such changes therein (and additions thereto to reflect the terms of the sale of the Bonds) as an Authorized Officer shall approve, such approval to be evidenced by the execution and delivery thereof. The successful bidder for the Bonds is hereby authorized to distribute the Official Statement and any such amendment or supplement thereto to the purchasers of the Bonds.

Section 18. Disposition of Proceeds of Sale. The proceeds of sale of the Bonds shall be applied by the Fiscal Agent as directed by the Authorized Officer as further specified in the Fiscal Agent Agreement, as follows: (a) accrued interest, if any, shall be deposited into the Interest Account of the Bond Fund; (b) a portion of the premium, if any, shall be deposited into the Interest Account of the Bond Fund in such amount not to exceed three years of interest on the Bonds; (c) a portion of the premium, if any, shall be deposited into the Costs of Issuance Account of the Capital Project Fund, and (d) remaining proceeds of sale shall be deposited into the Project Account of the Capital Project Fund established under Section 10.

Section 19. Attestations. The City Clerk is hereby authorized and directed to attest the signature of an Authorized Officer or such other City officers, as may be required or appropriate in connection with the execution and delivery or acknowledgement of said Fiscal Agent Agreement, Official Statement or related documents.

Section 20. Approval of Professionals. The appointments of Best Best & Krieger LLP, as Bond Counsel and Disclosure Counsel and Public Resources Advisory Group, Inc., as Municipal Advisor, are hereby ratified and approved.

Section 21. Accountability Reports. The Bonds are subject to accountability requirements under the Bond Ordinance. Accountability report(s) with respect to the Bonds shall be submitted in all other respects in the manner required by the Bond Ordinance.

Section 22. Reimbursement Resolution. The City Council hereby ratifies and confirms as true and correct the findings and determinations in the preambles to and declarations made in the Reimbursement Resolution.

Section 23. Other Actions. The Authorized Officers and the City Clerk and the other officers of the City are hereby authorized and directed jointly and severally to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate the transactions contemplated and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution. Such actions heretofore taken by such officers are hereby ratified, confirmed and approved.

Section 24. Effective Date. This Resolution shall take effect from and after its date of passage and 553
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adoption. 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.

PASSED, APPROVED AND ADOPTED this 13th day of October, 2026.

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

Joy A. Ford, City Attorney Eleanor Manzano, CMC, City Clerk 554
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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-2610-086 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 13th 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
555
64151067.v5
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FISCAL AGENT AGREEMENT
by and between the

CITY OF REDONDO BEACH
and
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
as Fiscal Agent
Dated as of [November] 1, 2026
Relating to
$[PAR AMOUNT]

CITY OF REDONDO BEACH, CALIFORNIA

GENERAL OBLIGATION BONDS (MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026
556
i
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TABLE OF CONTENTS
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ARTICLE I DEFINITIONS.................................................................................................................... 3 SECTION 1.01 Definitions............................................................................................. 3 ARTICLE II THE BONDS .................................................................................................................... 5 SECTION 2.01 Authorization and Designation ............................................................. 5 SECTION 2.02 The Bonds.............................................................................................. 5 SECTION 2.03 Form and Registration of Bonds........................................................... 7 SECTION 2.04 Execution and Authentication of Bonds............................................... 7 SECTION 2.05 Book-Entry System................................................................................ 7 SECTION 2.06 Transfer of Bonds upon Termination of Book-Entry System................ 8 SECTION 2.07 Exchange of Bonds................................................................................ 9 SECTION 2.08 Bond Register........................................................................................ 9 ARTICLE III ISSUANCE OF THE BONDS............................................................................................. 9 SECTION 3.01 Delivery of Bonds.................................................................................. 9 SECTION 3.02 Application of Proceeds of Sale of Bonds............................................. 9 SECTION 3.03 Investment of Funds........................................................................... 10 ARTICLE IV REDEMPTION OF THE BONDS..................................................................................... 11 SECTION 4.01 Redemption of Bonds ......................................................................... 11 SECTION 4.02 Notice of Redemption......................................................................... 12 SECTION 4.03 Defeasance of Bonds .......................................................................... 14 ARTICLE V OTHER COVENANTS..................................................................................................... 15 SECTION 5.01 Payment of Principal and Interest ...................................................... 15 SECTION 5.02 Obligation to Levy Taxes for Payment of Bonds................................. 15 SECTION 5.03 Further Assurances............................................................................. 15 SECTION 5.04 Tax Covenants..................................................................................... 16 SECTION 5.05 Validity of Bonds................................................................................. 16 ARTICLE VI THE FISCAL AGENT...................................................................................................... 16 SECTION 6.01 Appointment; Acceptance; Designated Office ................................... 16 SECTION 6.02 Resignation, Removal, Replacement of Fiscal Agent.......................... 17 557
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SECTION 6.03 Protection of Fiscal Agent................................................................... 17 SECTION 6.04 Reliance on Documents, Etc ............................................................... 17 SECTION 6.05 Recitals of City..................................................................................... 18 SECTION 6.06 Fiscal Agent May Own Bonds.............................................................. 18 SECTION 6.07 Money Held by Fiscal Agent; Unclaimed Moneys .............................. 18 SECTION 6.08 Other Transactions.............................................................................. 19 SECTION 6.09 Interpleader ........................................................................................ 19 SECTION 6.10 Indemnification................................................................................... 19 SECTION 6.11 Instructions to Fiscal Agent................................................................. 19 ARTICLE VII MODIFICATIONS OR AMENDMENTS ......................................................................... 20 SECTION 7.01 Supplemental Fiscal Agent Agreements with Consent of Owners................................................................................................ 20 SECTION 7.02 Supplemental Fiscal Agent Agreements Effective Without Consent of Owners ............................................................................. 20 SECTION 7.03 Effect of Supplemental Fiscal Agent Agreement................................ 21 ARTICLE VIII MISCELLANEOUS....................................................................................................... 21 SECTION 8.01 Counterparts....................................................................................... 21 SECTION 8.02 Continuing Disclosure ......................................................................... 21 SECTION 8.03 Notices................................................................................................ 21 SECTION 8.04 Governing Law .................................................................................... 22 EXHIBIT A FORM OF BOND ..........................................................................................................A-1 EXHIBIT B REQUISITION NO. [ ] ................................................................................................... B-1 558
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FISCAL AGENT AGREEMENT
This FISCAL AGENT AGREEMENT (this “Fiscal Agent Agreement”) is made and entered into as of [November] 1, 2026, by and between the CITY OF REDONDO BEACH (the “City”), a municipal corporation duly organized and existing under its charter and the Constitution and laws of the State of California, and U.S. Bank Trust Company, National Association, a national banking association duly organized and existing under the laws of the United States of America, as paying agent, registrar and fiscal agent (the “Fiscal Agent”).

WITNESSETH:

WHEREAS, a duly called election was held and conducted in the City on November 5, 2024 (the “Bond Election”), and thereafter canvassed pursuant to law at which the following bond proposition (“Measure FP”) summarized as follows was submitted to the electors of the City:

MEASURE FP
“To recruit/retain qualified firefighters/paramedics/police, improve Redondo Beach’s ability to provide fire/police protection and 911 response, help keep Redondo Beach safe by repairing/replacing/upgrading deteriorated fire/police stations/facilities, including removing asbestos and mold, shall Redondo Beach’s measure authorizing $93,350,000 in bonds at legal rates, levying on average $17.45 per $100,000 of assessed valuation, generating approximately $6,280,000 annually while bonds are outstanding, requiring oversight, spending disclosure, and all funds spent locally, be adopted?”; and
WHEREAS, passage of Measure FP required a two-thirds affirmative vote of the votes cast therein, and more than two thirds of the votes on said measure were cast in favor of issuing said bonds; and
WHEREAS, the City Council (the “City Council”) of the City has determined that the City needs to finance the costs of acquisition, construction, reconstruction, rehabilitation and/or replacement of the City’s police and fire facilities (collectively, the “Improvements”), including all work, facilities and expenditures necessary and incidental for the Improvements, including but not limited to the costs of design, engineering, architecture and other professional services, inspections, site preparation, utilities, landscaping, construction management and other planning and permitting, legal, accounting and similar costs, a customary construction contingency, demolition and disposal of existing structures, rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction, addressing unforeseen conditions revealed by construction or renovation, and other improvements in compliance with applicable building codes and other law, including the Americans with Disabilities Act (42 U.S.C. Sections 12101 et seq.), costs of the Bond 559
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Election, bond issuance costs, project administration during the duration of such projects, and financing and interest costs necessary or convenient for the foregoing purposes, as provided for in Measure FP and desires to issue its City of Redondo Beach, California General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026, in the aggregate principal amount not to exceed $93,350,000 (the “Bonds”), in a single tax-exempt series; and WHEREAS, the City is authorized to issue the Bonds and to sell the Bonds on a competitive public sale basis pursuant to the Bond Election and applicable provisions of the following (referred to collectively herein as the “Bond Law”): (a) the Constitution and laws of the State of California, including without limitation the provisions of Article 1 of Chapter 4 of Division 4 of Title 4 of the California Government Code (the “Government Code”), and the provisions of Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code; (b) the City Charter; (c) Resolution No. CC-2407-060, entitled “A Resolution of the City Council of the City of Redondo Beach Determining that the Public Interest and Necessity Demand the Acquisition, Construction, Reconstruction, Rehabilitation or Replacement of Municipal Improvement Projects Constituting Public Infrastructure of the City, and Their Financing Through the Issuance of General Obligation Bonds,” adopted by the City Council at a meeting held July 30, 2024; (d) Ordinance No. 3274-24, entitled “An Ordinance of the City of Redondo Beach Ordering the Submission of a Proposition Incurring Bonded Indebtedness to the Qualified Voters of the City of Redondo Beach at the Statewide General Election to be Held on November 5, 2024, for the Purpose of Financing the Costs of the Acquisition, Construction, Reconstruction, Rehabilitation or Replacement of Certain Municipal Improvement Projects Constituting Public Infrastructure of the City,” adopted by the City Council at a meeting held on August 6, 2024; and (e) Resolution No. CC-26__, entitled “A Resolution of the City Council of the City of Redondo Beach Authorizing and Directing the Issuance and Sale of Not to Exceed $93,350,000 Aggregate Principal Amount of City of Redondo Beach, California General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026, and Approving Other Related Actions in Connection Therewith,” adopted by the City Council at a meeting held on [October 13], 2026 (the “Bond Resolution”); and
WHEREAS, the City has found and determined, and by execution hereof so represents that all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the issuance of the Bonds and the execution and entering into of this Fiscal Agent Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Fiscal Agent Agreement; NOW, THEREFORE, in order to provide for the payment of the Bonds and the performance and observance by the City of all the covenants, agreements and conditions herein; and in consideration of the mutual covenants and agreements contained herein, and for other valuable consideration to all parties, the City and the Fiscal Agent hereby agree as follows:
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ARTICLE I

DEFINITIONS
SECTION 1.01 Definitions. Unless the context otherwise requires, the terms defined in this Section 1.01 shall, for all purposes hereof and of any amendment hereof or supplement hereto and of the Bonds and of any certificate, opinion, request or other document mentioned herein or therein, have the meanings defined herein, the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein:
“Authorized Representative” means the Mayor of the City, or such other member of the City Council as the Mayor may designate, the City Manager, the Finance Director, the City Treasurer, or such other officer of the City as any such officer may designate, acting with the authority on behalf of the City.
“Bond Election” has the meaning ascribed to such term in the recitals of this Fiscal Agent Agreement.
“Bond Fund” means the Bond Fund of the City administered and maintained by the Fiscal Agent and established pursuant to the Bond Resolution. “Bond Law” has the meaning ascribed to such term in the recitals of this Fiscal Agent Agreement.
“Bondowner” or “Owner” means the person in whose name any Bond shall be registered.
“Bond Resolution” has the meaning ascribed to such term in the recitals of this Fiscal Agent Agreement.
“Bonds” means the City of Redondo Beach, California General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026, in the aggregate principal amount of [PAR AMOUNT], issued pursuant to the Bond Law and this Fiscal Agent Agreement. “Business Day” means a day which is not (a) a Saturday, Sunday or legal holiday in the State of California, (b) a day on which banking institutions in the State of California, or in any state in which the office of the Fiscal Agent is located, are required or authorized by law (including executive order) to close, or (c) a day on which the New York Stock Exchange is closed. “Capital Project Fund” means the Capital Project Fund of the City maintained and administered by the Fiscal Agent, established pursuant to the Bond Resolution. “City” means the City of Redondo Beach, located in the County of Los Angeles. “City Council” means the City Council of the City of Redondo Beach. 561
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“Code” means the Internal Revenue Code of 1986, as the same shall be hereafter amended, and any regulations heretofore issued or which shall be hereafter issued by the United States Department of the Treasury thereunder.
“Continuing Disclosure Agreement” means that certain Continuing Disclosure Agreement executed and delivered by the City and U.S. Bank Trust Company, National Association, dated as of [November] 1, 2026, as originally executed and as it may be amended from time to time in accordance with the terms thereof. “Costs of Issuance Account” means the account by that name within the Capital Project Fund maintained and administered by the Fiscal Agent and established pursuant to the Bond Resolution.
“Defeasance Securities” means (i) direct, non-callable obligations of the United States Treasury; (ii) direct non-callable and non-prepayable obligations which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest; (iii) non-callable, non-prepayable coupons from the above securities which are stripped pursuant to United States Treasury programs; (iv) non-callable and non-prepayable (or irrevocably called to a specified redemption date) refunded municipal bonds that are backed by an escrow funded with obligations of or guaranteed by the United States of America; (v) Resolution Funding Corporation (REFCORP) securities consisting of interest components stripped by the Federal Reserve Bank of New York; (vi) United States State and Local Government Securities (SLGS); and (vii) the following non-callable, non-prepayable obligations of federal government-sponsored agencies that are not backed by the full faith and credit of the U.S.

Government: Federal Home Loan Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Tennessee Valley Authority, Farm Credit System, Washington Metropolitan Area Transit Authority, United States Import-Export Bank, United States Department of Housing and Urban Development, Farmers Home Administration, General Services Administration and United States Maritime Administration (provided such agency security has a rating when purchased at the same level as obligations of the United States Treasury).
“DTC” means The Depository Trust Company, a limited-purpose trust company organized under the laws of the State of New York, and its successors as securities depository for the Bonds, including any such successor appointed hereunder. “Fiscal Agent” means U.S. Bank Trust Company, National Association, as initial paying agent, registrar, and fiscal agent with respect to the Bonds, its successors and assigns and any other corporation or association which may at any time be substituted in its place as provided in Section 6.02.
“Fiscal Agent Agreement” meansthis agreement, by and between the City and the Fiscal Agent.
“General Fund” means the general fund of the City.
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“Interest Payment Date” means each March 1 and September 1 until the Bonds are paid in full. The first Interest Payment Date is [March 1, 2027]. “Investment Agreement” has the meaning ascribed to such term in Section 3.03(b).
“Opinion of Bond Counsel” means a written opinion of counsel of recognized national standing in the field of law relating to municipal bonds, appointed and paid by the City. “Project Account” meansthe account by that name within the Capital Project Fund maintained and administered by the Fiscal Agent and established pursuant to the Bond Resolution.
“Record Date” means the 15th day of the month preceding any Interest Payment Date. The first Record Date is [February 15, 2027].
“Redemption Date” has the meaning ascribed to such term in Section 4.02(a). “Tax Certificate” means the Tax Certificate concerning certain matters pertaining to the use of proceeds of the Bonds, executed and delivered by the City on the date of issuance of the Bonds, including all exhibits attached thereto, as such certificate may from time to time be modified or supplemented in accordance with the terms thereof “Written Order of the City” or “Written Request of the City” means an instrument in writing, signed by an Authorized Representative in writing for the purpose of providing any order or request by or on behalf of the City.

ARTICLE II

THE BONDS
SECTION 2.01 Authorization and Designation. The Bonds shall be issued for, and the proceeds of sale thereof shall be used exclusively for, the purposes approved by the voters of the City in the Bond Election. The Bonds shall be issued by the City under and subject to the terms of the Bond Resolution, this Fiscal Agent Agreement and the Bond Law, and shall be issued in a single tax-exempt series. The Bonds shall be issued in fully registered form, without coupons.

SECTION 2.02 The Bonds. The Bonds in the aggregate principal amount of $[PAR AMOUNT] are issued under this Fiscal Agent Agreement, upon terms further described below in this Section 2.02:
(a) Date of Bonds. The Bonds shall be dated as of the date of issuance thereof, expected to be [CLOSING DATE], 2026.
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(b) Denominations of Bonds. The Bonds shall be issued in denominations of $5,000 principal amount or any integral multiple thereof. (c) Payment of Principal. The Bonds shall mature September 1 in each of the years and principal amounts and bear interest at the annual rates of interest shown below:

Maturity
(September 1)
Principal
Amount Interest Rate Yield Price
c
$_________ ___% Term Bonds due September 1, 20__ – Yield ____% – Price _____ $_________ ___% Term Bonds due September 1, 20__ – Yield ____% – Price _____ _______________
c
Priced to call at par on September 1, 20__.

The principal and any redemption premium of the Bonds shall be payable in lawful money of the United States of America to the Owner thereof, upon the surrender thereof at the office of the Fiscal Agent designated for the purpose pursuant to Section 6.01(b), on or after the maturity date thereof or upon redemption prior to maturity. (d) Interest on the Bonds. The Bonds shall bear interest at the respective rates shown in the table in paragraph (c) above, payable each March 1 and September 1, commencing [March 1, 2027], until payment of the principal amount thereof. Each Bond authenticated and registered on any date on or prior to the close of business on the first Record Date shall bear interest from the date of said Bond. Each Bond authenticated during the period between any Record Date and the close of business on its corresponding Interest Payment Date shall bear interest from such Interest Payment Date. Any other Bond shall bear interest from the Interest Payment Date immediately preceding the date of its authentication. If, at the time of authentication of any Bond, interest is in default on any outstanding Bonds, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on the outstanding Bonds. Interest on the Bonds shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. (e) Payment of Interest. The interest on the Bonds shall be payable in lawful money to the person or entity whose name appears on the bond registration books of the Fiscal Agent as the Owner thereof as of the close of business on the applicable Record Date for each Interest Payment Date whether or not such day is a Business Day. Payment of the interest on any Bond shall be made by check mailed by first class mail on each Interest Payment Date, whether or not such day is a Business Day, to such Owner at such Owner’s address as it appears on such 564
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registration books or at such address as the Owner may have filed with the Fiscal Agent for that purpose on or before a Record Date; or upon written request of the Owner of Bonds aggregating not less than $1,000,000 in principal amount, given no later than the Record Date immediately preceding the applicable Interest Payment Date, by wire transfer in immediately available funds to an account maintained in the United States at such wire address as such Owner shall specify in its written notice. So long as Cede & Co. or its registered assigns shall be the registered owner of any of the Bonds, payment shall be made thereto by wire transfer as provided in Section 2.06.

SECTION 2.03 Form and Registration of Bonds. The Bonds, including the Fiscal Agent’s certificate of authentication and registration and the form of assignment to appear thereon, shall be in substantially the form attached hereto as Exhibit A, with necessary or appropriate variations, omissions and insertions as permitted or required by this Fiscal Agent Agreement and may be delivered in typewritten form. The Bonds when issued shall be registered in the name of “Cede & Co.,” as nominee of DTC, and shall be initially issued as one bond for each of the maturities of the Bonds, in the principal amounts set forth in the table in Section 2.02. DTC is hereby appointed depository for the Bonds, and registered ownership of the Bonds may not thereafter be transferred except as provided in Sections 2.06 and 2.07.

SECTION 2.04 Execution and Authentication of Bonds. The Bonds shall be signed by the manual or facsimile signature of the Mayor of the City and countersigned by the manual or facsimile signature of the City Clerk of the City or their designee. In case any such officer whose facsimile signature or countersignature appears on a Bond shall cease to be such officers before the delivery of such Bond to the purchaser, such signatures or countersignatures shall nevertheless be valid and sufficient for all purposes as if such officers had remained in office until the delivery of such Bond. Each Bond shall be authenticated by a manual signature of a duly authorized officer of the Fiscal Agent. Only such of the Bonds as shall bear thereon a certificate of authentication and registration in the form given in Exhibit A hereto, executed by the Fiscal Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Fiscal Agent Agreement, and such certificate of the Fiscal Agent shall be conclusive evidence that the Bonds so authenticated have been duly authenticated and delivered hereunder and are entitled to the benefits of this Fiscal Agent Agreement.

SECTION 2.05 Book-Entry System. (a) The Bonds shall be initially issued and registered as provided in Section 2.03. Registered ownership of the Bonds, or any portion thereof, may not thereafter be transferred except:
(i) To any successor of Cede & Co., as nominee of DTC, or its nominee, or to any substitute depository designated pursuant to clause (ii) of this paragraph (a) (being a “substitute depository”); provided, that any successor of Cede & Co., as nominee of DTC or substitute depository, shall be qualified under any applicable laws to provide the services proposed to be provided by it;
(ii) To any substitute depository not objected to by the City, upon (A) the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository, or (B) a determination by the City to substitute another 565
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depository for DTC (or its successor) because DTC or its successor (or any substitute depository or its successor) is no longer able to carry out its functions as depository; provided, that any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it; or (iii) To any person as provided below, upon (A) the resignation of DTC or its successor (or substitute depository or its successor) from its functions as depository, or (B) a determination by the City to remove DTC or its successor (or any substitute depository or its successor) from its functions as depository. (b) In the case of any transfer described in clause (i) or clause (ii) of paragraph (a) of this Section 2.05, upon receipt of the outstanding Bonds by the Fiscal Agent, together with a Written Request of the City, a new Bond for each maturity shall be executed and delivered pursuant to the procedures described in Section 2.04 in the aggregate principal amount of the Bonds then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such Written Request of the City. In the case of any transfer described in clause (iii) of paragraph (a) hereof, upon receipt of the outstanding Bonds by the Fiscal Agent together with a Written Request of the City, new Bonds shall be executed and delivered in such denominations numbered in the manner determined by the Fiscal Agent and registered in the names of such persons as are requested in such Written Request of the City, subject to the limitations of Sections 2.02 and 2.03, as applicable, and the receipt of such a Written Request of the City, and thereafter, the Bonds shall be transferred pursuant to the provisions set forth in Section 2.06 of this Fiscal Agent Agreement; provided, that the Fiscal Agent shall not be required to deliver such new Bonds within a period of fewer than 60 days. The City and the Fiscal Agent shall be entitled to treat the person in whose name any Bond is registered as the Owner thereof, notwithstanding any notice to the contrary received by the City or the Fiscal Agent, the City and the Fiscal Agent shall have no responsibility for transmitting payments to, communicating with, notifying, or otherwise dealing with any beneficial owners of the Bonds. Neither the City nor the Fiscal Agent shall have any responsibility or obligation, legal or otherwise, to the beneficial owners or to any other party including DTC or its successor (or substitute depository or its successor), except as the Owner of any Bonds. So long as the outstanding Bonds are registered in the name of Cede & Co. or its registered assigns, the City and the Fiscal Agent shall cooperate with Cede & Co., as sole Owner, or its registered assigns, in effecting payment of the principal of and interest on the Bonds by arranging for payment in such manner that funds for such payments are properly identified and are made immediately available (e.g., by wire transfer) on the date they are due.

SECTION 2.06 Transfer of Bonds upon Termination of Book-Entry System. If the Bonds ever cease to be registered in the name of Cede & Co. by operation of the provisions of Section 2.05, then the procedures contained in this Section 2.06 shall apply. Any Bond may, in accordance with its terms, be transferred upon the books required to be kept pursuant to the provisions of Section 2.08 by the person in whose name it is registered, in person or by the duly authorized attorney of such person, upon surrender of such Bond to the Fiscal Agent for cancellation at the office of the Fiscal Agent designated for that purpose, accompanied by 566
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delivery of a duly executed written instrument of transfer in a form approved by the Fiscal Agent.

Whenever any Bond or Bonds shall be surrendered for transfer, the designated City officials shall execute (as provided in Section 2.04) and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds of the same maturity, for a like aggregate principal amount and bearing the same rate or rates of interest. The Fiscal Agent shall require the payment by the Bondowner requesting any such transfer of any tax or other governmental charge required to be paid with respect to such transfer. No transfer of Bonds shall be required to be made by the Fiscal Agent during the period from the close of business on the Record Date next preceding any Interest Payment Date or the date fixed for redemption to and including such Interest Payment Date or date fixed for redemption.

SECTION 2.07 Exchange of Bonds. Bonds may be exchanged at the office of the Fiscal Agent designated for that purpose, for a like aggregate principal amount of Bonds of other authorized denominations of the same maturity and interest rate. The Fiscal Agent shall require the payment by the Bondowner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. No exchange of Bonds shall be required to be made by the Fiscal Agent during the period from the close of business on the Record Date next preceding any Interest Payment Date or date fixed for redemption to and including such Interest Payment Date or the date fixed for redemption.

SECTION 2.08 Bond Register. (a) The Fiscal Agent shall keep or cause to be kept, at the place it shall designate for the purpose, sufficient books for the registration and transfer of the Bonds, which shall at all times be open to inspection by the City, and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, Bonds as hereinbefore provided.
(a) The Fiscal Agent shall assign each Bond authenticated and registered by it a distinctive letter or number, or letter and number.

ARTICLE III

ISSUANCE OF THE BONDS
SECTION 3.01 Delivery of Bonds. The Fiscal Agent is hereby authorized to authenticate and deliver the Bonds to or upon the Written Request of the City upon receipt of the purchase price of the Bonds from the purchaser thereof.

SECTION 3.02 Application of Proceeds of Sale of Bonds. Upon the City’s receipt from the purchaser of the Bonds of an amount equal to the purchase price of the Bonds, being $__________ (the par amount of the Bonds, plus/less the net original issue premium/discount of $_____________, less the underwriters’ discount of $_____________), the Finance Director shall cause such amount to be deposited with the Fiscal Agent, and the Fiscal Agent shall deposit said amounts as follows:
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(i) the Fiscal Agent shall deposit $___________ in the Project Account within the Capital Project Fund of the City related to the Bonds. Moneys in the Project Account shall be applied only for the purposes for which the Bonds were approved in the Bond Election and disbursed upon any Written Order of the City in substantially the form set forth in Exhibit B hereto;
(ii) the Fiscal Agent shall deposit $___________ in the Interest Account of the Bond Fund of the City related to the Bonds. Moneys in the Bond Fund shall be applied only to make payments of interest, principal, and redemption premium, if any, on the Bonds; and
(iii) the Fiscal Agent shall deposit $___________ to the Costs of Issuance Account related to the Bonds, which is hereby created and which shall be held and administered by the Fiscal Agent. Amounts deposited in such Costs of Issuance Account shall be disbursed upon any Written Order of the City in substantially the form set forth in Exhibit B hereto. On the 120th day following the date of issue of the Bonds, the Fiscal Agent shall transfer any remaining amounts in such Costs of Issuance Account to the Project Account of the Capital Project Fund of the City related to the Bonds.

SECTION 3.03 Investment of Funds. (a) The proceeds from the sale of the Bonds, exclusive of any premium and accrued interest received and excluding the amount deposited in the Costs of Issuance Account, shall be deposited in the Capital Project Fund. Any premium and accrued interest not directed by the City to be deposited in the Costs of Issuance Account shall be deposited upon receipt in the Bond Fund. Earnings on the investment of moneys in either fund shall be retained in that fund and used only for the purposes to which that fund may lawfully be applied.
(b) All funds held by the City with respect to the Bonds shall be invested by the City Treasurer pursuant to the City’s current Statement of Investment Policy governing the investment of moneys in the general fund of the City, any investment authorized by this Fiscal Agent Agreement or pursuant to Section 53601 of the Government Code, or in investment agreements, including guaranteed investment contracts, float contracts or other investment products (hereinafter collectively referred to as “Investment Agreements”); provided that such agreements comply with the requirements of Section 148 of the Code, and with the requirements of each rating agency then rating the Bonds necessary in order to maintain the then-current rating on the Bonds, if any.

Moneys held in any of the funds and accounts under this Fiscal Agent Agreement by the Fiscal Agent shall be invested upon any Written Order of the City Treasurer in investments pursuant to the City’s policies and guidelines for investment of moneys in the General Fund or in Investment Agreements so as to effectively coordinate the investments to the construction program of the City and the debt service payments on the Bonds or to comply with the tax covenants of the City, which shall be deemed at all times to be a part of such funds and accounts.

Any loss or investment earnings resulting from such investments shall be credited or charged to the fund or account from which such investment was made. The City Treasurer or Finance 568
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Director, or both, is hereby authorized to establish accounts with banking institutions to the extent necessary or convenient to provide for the management of any such investments.

ARTICLE IV

REDEMPTION OF THE BONDS
SECTION 4.01 Redemption of Bonds.
(a) Optional Redemption. The Bonds maturing on or after September 1, 20__, are subject to optional redemption prior to their respective stated maturity dates, at the option of the City, from any source of available funds, as a whole or in part on any date on or after September 1, 20__, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed, without premium, together with unpaid accrued interest thereon to the date fixed for redemption.
(b) Mandatory Sinking Fund Redemption. The Bonds maturing September 1, 20__ (the “20__ Term Bonds”), are subject to mandatory sinking fund redemption September 1 of each year, commencing September 1, 20__, at a redemption price equal to 100% of their principal amount, together with unpaid accrued interest thereon to the date fixed for redemption, without premium, on the dates and in the aggregate principal amounts listed below:
20___Term Bonds
Redemption Date
(September 1)
Principal Amount to be
Redeemed
$
(1)
Total $
______________
(1) Maturity.

The Bonds maturing September 1, 20__ (the “20__ Term Bonds”), are subject to mandatory sinking fund redemption on September 1 of each year, commencing September 1, 20__, at a redemption price equal to 100% of their principal amount, together with unpaid accrued interest thereon to the date fixed for redemption date, without premium, on the dates and in the aggregate principal amounts listed below:
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20___Term Bonds
Redemption Date
(September 1)
Principal Amount to be
Redeemed
$
(1)
Total $
______________
(1) Maturity.

In the event that a portion of the 20__ Term Bonds is optionally redeemed prior to maturity, the remaining mandatory sinking fund payments shown above shall be reduced proportionately or as otherwise directed by the City, in integral multiples of $5,000 principal amount, with respect to the portion of such 20__ Term Bonds optionally redeemed. (c) Purchase in Lieu of Redemption. The principal of and interest on the Bonds subject to mandatory redemption shall be paid from the Bond Fund established under the Bond Resolution. In lieu of any such mandatory redemption for Bonds, at any time prior to the selection of Bonds for mandatory redemption, the City may apply amounts on deposit in the Bond Fund to make such payment to the purchase, at public or private sale, of Bonds subject to such mandatory redemption, and when and at such prices not in excess of the principal amount thereof (including sales commission and other charges but excluding accrued interest), as the City may determine. (d) Selection of Bonds for Redemption. If less than all of the Bonds are called for redemption, such Bonds shall be redeemed in inverse order of maturities or as otherwise directed by the City. If less than all of the Bonds of any given maturity are called for redemption, the portions of such Bonds of a given maturity to be redeemed shall be determined by lot by the Fiscal Agent. For purposes of such selection, each Bond shall be deemed to consist of individual Bonds of denominations of $5,000 principal amount each, which may be separately redeemed.

SECTION 4.02 Notice of Redemption. (a) The date on which Bonds that are called for redemption are to be presented for redemption is called the “Redemption Date.” The Fiscal Agent shall mail, or cause to be mailed, notice of any redemption of the Bonds to be redeemed, postage prepaid, to the respective registered owners thereof at the addresses appearing on the bond registration books not less than 20 days and not more than 60 days prior to the Redemption Date. Notice of redemption also shall be given, or caused to be given, by the Fiscal Agent, by (i) registered or certified mail, postage prepaid, (ii) overnight delivery service, or (iii) to the extent applicable to the intended recipient, email or similar electronic means, to (A) all organizations registered with the Securities and Exchange Commission as securities depositories and (B) such other services or organizations as may be required in accordance with the provisions of the Continuing Disclosure Agreement. Each notice of redemption shall (1) state the Redemption Date; (2) state the redemption price; (3) state the maturity dates of the Bonds called 570
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for redemption, and, if less than all of any such maturity is called for redemption, the distinctive numbers of the Bonds of such maturity to be redeemed, and in the case of a Bond redeemed in part only, the portions of the principal amount thereof to be redeemed; (4) state the CUSIP number, if any, of each Bond to be redeemed, together with a statement that such information is provided solely for convenience of reference and neither the City nor the Fiscal Agent shall be responsible for the accuracy thereof; (5) require that such Bonds be surrendered by the owners at the office of the Fiscal Agent; and (6) give notice that interest on such Bonds or portions of such Bonds to be redeemed will cease to accrue after the designated Redemption Date. Any notice of optional redemption may be conditioned on the receipt of funds or any other event specified in the notice. The actual receipt by the owner of any Bond of such notice of redemption will not be a condition precedent to redemption of such Bond, and failure to receive such notice, or any defect in such notice, shall not affect the validity of the proceedings for the redemption of such Bond or the cessation of the accrual of interest on such Bond on the Redemption Date. (a) Effect of Notice of Redemption. When notice of optional redemption has been given as described above, and when the amount necessary for the redemption of the Bonds called for redemption (principal, premium, if any and accrued interest to the Redemption Date) is set aside for that purpose in the Redemption Account, the Bonds designated for redemption shall become due and payable on the Redemption Date, and upon presentation and surrender of such Bonds at the place specified in the notice of redemption, such Bonds shall be redeemed and paid at said redemption price out of the related Redemption Account. No interest shall accrue on such Bonds called for redemption after the Redemption Date, and the registered owners of such Bonds shall look for payment of such Bonds only to the related Redemption Account. All Bonds redeemed shall be canceled immediately by the Fiscal Agent and shall not be reissued. (b) Conditional Notice. Any notice of optional redemption may provide that such redemption is conditioned upon: (i) deposit of sufficient moneys in the Redemption Account to redeem the Bonds called for redemption on the anticipated Redemption Date or (ii) the occurrence of any other event specified in the notice of redemption. In the event that such conditional notice of optional redemption has been given substantially and on the scheduled Redemption Date (i) sufficient moneys to redeem the Bonds called for optional redemption on the Redemption Date have not been deposited, or (ii) any other event specified in the notice of redemption did not occur, such Bonds for which notice of conditional optional redemption was given shall not be redeemed on the anticipated Redemption Date and shall remain Outstanding for all purposes of the Bond Resolution, and the redemption not occurring shall not constitute a default under the Bond Resolution.
(c) Rescission of Notice of Redemption. The City may rescind any optional redemption and notice thereof on any date prior to any Redemption Date by causing written notice of the rescission to be given to the registered Owners of all Bonds so called for redemption.

Notice of such rescission of redemption shall be given in the same manner notice of redemption was originally given. The actual receipt by the registered Owner of any Bond of notice of such rescission shall not be a condition precedent to rescission, and failure to receive such notice or any defect in such notice so mailed shall not affect the validity of the rescission. 571
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(d) Redemption Account. At the time the City determines to exercise its option to call and redeem any of the Bonds, the Finance Director or his or her agent shall establish a redemption account to be described or known as the “General Obligation Bonds (Public Safety Improvements) Series 2026 Redemption Account” (“Redemption Account”) within the Bond Fund, and prior to or on the Redemption Date there must be set aside in the Redemption Account, or held in trust for such purpose as provided by law, moneys available for the purpose and sufficient to redeem, as provided in this Fiscal Agent Agreement, the Bonds designated in such notice of redemption, subject to the provisions of paragraph (d) of this Section 4.02. Such moneys shall be set aside in the Redemption Account solely for the purpose of, and shall be applied on or after the Redemption Date to, the payment of the redemption price of the Bonds to be redeemed upon presentation and surrender of such Bonds. Such moneys so set aside in any such Redemption Account shall be applied on or after the Redemption Date solely for payment of principal of and premium, if any, on the Bonds to be redeemed upon presentation and surrender of such Bonds, provided that all moneys in the Redemption Account of the Bond Fund of the City shall be used for the purposes established and permitted by law. Any interest due on or prior to the Redemption Date may be paid from the Interest Account of the Bond Fund or from the Redemption Account, unless otherwise provided for to be paid. Moneys held from time to time in the Redemption Account shall be invested by the City Treasurer pursuant to the City’s policies and guidelines for investment of moneys in the General Fund of the City. If, after all of the Bonds have been redeemed and canceled or paid and canceled, there are moneys remaining in the Redemption Account, such moneys shall be transferred to the General Fund of the City or to such other fund or account as required by applicable law; provided, that if such moneys are part of the proceeds of refunding bonds, such moneys shall be transferred pursuant to the resolution authorizing such refunding bonds.

SECTION 4.03 Defeasance of Bonds. Payment of all or any portion of the Bonds may be provided for prior to such Bonds’ respective stated maturities by irrevocably depositing with the Fiscal Agent (or any commercial bank or trust company designated by the Finance Director to act as escrow agent with respect thereto):
(a) an amount of cash equal to the principal amount of all of such Bonds or a portion thereof, and all unpaid interest thereon to maturity, except that in the case of Bonds which are to be redeemed prior to such Bonds’ respective stated maturities and in respect of which notice of such redemption shall have been given as provided in Section 4.02 or an irrevocable election to give such notice shall have been made by the City, the amount to be deposited shall be the principal amount thereof, all unpaid interest thereon to the Redemption Date, and any premium due on such Redemption Date; or
(b) Defeasance Securities maturing and paying interest at such times and in such amounts; together with interest earnings and cash, if required, as will, without reinvestment, as certified by an independent certified public accountant, be fully sufficient to pay the principal and all unpaid interest to maturity, or to the Redemption Date, as the case may be, and any premium due on the Bonds to be paid or redeemed, as such principal and interest come due; provided, that, in the case of the Bonds which are to be redeemed prior to maturity, 572
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notice of such redemption shall be given as provided in Section 4.02 or an irrevocable election to give such notice shall have been made by the City;
and then, in either case, all obligations of the City with respect to such outstanding Bonds shall cease and terminate, except only the tax covenants under Section 5.04 and in the Bond Resolution and the obligation of the City to pay or cause to be paid from the funds deposited pursuant to clause (a) or (b) of this Section 4.03, to the owners of such Bonds all sums due with respect thereto; and provided further, that the City shall have received an opinion of nationally recognized bond counsel, that provision for the payment of such Bonds has been made in accordance with this Section 4.03.

If at any time the City shall pay or cause to be paid or there shall otherwise be paid to the Owners of any or all outstanding Bonds all of the principal, interest and premium, if any, represented by such Bonds when due, or as described above, or as otherwise provided by law, then such Owners shall cease to be entitled to the obligation of the City to levy and collect taxes to pay such Bonds as described in Section 5.02, and such obligation and all agreements and covenants of the City to such Owners hereunder and under such Bonds shall thereupon be satisfied and discharged and shall terminate, except only that the City shall remain liable for payment of all principal, interest and premium, if any, represented by such Bonds, but only out of moneys on deposit in the Bond Fund or otherwise held in trust for such payment; provided, that the unclaimed moneys provisions described in Section 6.07 shall apply in all events.

ARTICLE V

OTHER COVENANTS
SECTION 5.01 Payment of Principal and Interest. On or prior to the date any payment is due in respect of the Bonds, the City shall cause moneys to be deposited with the Fiscal Agent sufficient to pay the principal and the interest (and premium, if any) to become due in respect of all Bonds outstanding on such payment date. When and as paid in full, and following surrender thereof to the Fiscal Agent, all Bonds shall be cancelled by the Fiscal Agent and thereafter destroyed.

SECTION 5.02 Obligation to Levy Taxes for Payment of Bonds. The City Council and officers of the City are obligated by statute to fix the general tax levy, and in the manner provided for such general tax levy, levy a tax upon all taxable property in the City and collect annually until the Bonds are paid, or until there shall be a sum set apart for that purpose in the treasury of the City in each year sufficient to redeem the Bonds, and to pay the principal, redemption premium, if any, and interest thereon as and when the same become due. The City is not obligated to pledge and pledges no moneys hereunder other than as provided for and required by the Bond Law.

SECTION 5.03 Further Assurances. The City shall promptly execute and deliver or cause to be executed and delivered all such other and further instruments, documents or assurances, and promptly do or cause to be done all such other and further things, as may be 573
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necessary or reasonably required in order to further and more fully vest in the Bondowners all rights, interest, powers, benefits, privileges and advantages conferred or intended to be conferred upon them by this Fiscal Agent Agreement.

SECTION 5.04 Tax Covenants. (a) The City shall neither take any action or inaction, nor fail to take any action, nor permit any action to be taken on its behalf or cause or permit any circumstances within its control to arise or continue, if such action or inaction would adversely affect the exclusion from gross income of the interest payable on the Bonds under Section 103 of the Code. Without limiting the generality of the foregoing, the City shall comply with the instructions and requirements of the Tax Certificate for the Bonds. This covenant shall survive payment in full or defeasance of the Bonds.
(a) If and when the City determines that for purposes of this Section 5.04 it is necessary or helpful to restrict or limit the yield on the investment of any moneys held by the Fiscal Agent under this Fiscal Agent Agreement, the City shall so instruct the Fiscal Agent in writing, and the Fiscal Agent shall take such action as may be necessary in accordance with such instructions. If directed in a written request of the City, the Fiscal Agent shall establish when required and maintain a fund separate from any other fund or account established and maintained hereunder designated as the “Rebate Fund.” Upon the written direction of the City, there shall be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to the Tax Certificate. All money at any time deposited in the Rebate Fund shall be held by the Fiscal Agent in trust, to the extent required to satisfy the Rebate Amount (as defined in the Tax Certificate), for payment to the United States of America. All amounts required to be deposited into or on deposit in the Rebate Fund shall be governed exclusively by this Section 5.04 and by the Tax Certificate (which is incorporated herein by reference). The Fiscal Agent shall be deemed conclusively to have complied with such provisions if it follows the written request of the City, and shall have no liability or responsibility to enforce compliance by the City with the terms of the Tax Certificate.
(b) Notwithstanding any provisions of paragraphs (a) or (b) of this Section 5.04, if the City shall obtain and provide to the Fiscal Agent an Opinion of Bond Counsel that any specified action required under this Section 5.04 is no longer required or that some further or different action is required in order to maintain the exclusion from federal income tax of interest on the Bonds under Section 103 of the Code, the Fiscal Agent may conclusively rely on such Opinion of Bond Counsel in complying with the requirements of this Section 5.04 and of the Tax Certificate, and the covenants in this Section 5.04 shall be deemed to be modified to that extent.

SECTION 5.05 Validity of Bonds. The recital contained in the Bonds that the same are regularly issued pursuant to the Bond Law and that the total amount of indebtedness of the City, including the amount of the Bonds, is within the limit provided by law, shall be conclusive evidence of their validity and of compliance with the provisions of the Bond Law in their issuance.
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ARTICLE VI

THE FISCAL AGENT
SECTION 6.01 Appointment; Acceptance; Designated Office. (a) Appointment and Acceptance of Duties. U.S. Bank Trust Company, National Association, is hereby appointed Fiscal Agent, and hereby accepts and agrees to perform the duties and obligations of the Fiscal Agent, registrar and transfer agent specifically imposed upon it by this Fiscal Agent Agreement, and no implied duties shall be read into this Fiscal Agent Agreement against the Fiscal Agent. The Fiscal Agent is hereby authorized and hereby agrees to pay or redeem the Bonds when duly presented for payment at maturity, or on prior redemption, and to cancel all Bonds upon payment thereof. The Fiscal Agent shall keep accurate records of all funds administered by it and of all Bonds paid and discharged. (b) Office of the Fiscal Agent. The Fiscal Agent, and any successor Fiscal Agent, shall designate each place or places where it will conduct the functions of transfer, registration, exchange, payment, and surrender of the Bonds. If no office is so designated for a particular purpose, such functions shall be conducted at the office of U.S. Bank Trust Company, National Association in Los Angeles, CA, or the principal corporate trust office of any successor Fiscal Agent.

SECTION 6.02 Resignation, Removal, Replacement of Fiscal Agent. The Fiscal Agent may at any time resign by giving written notice to the City of such resignation, whereupon the Finance Director shall appoint a successor Fiscal Agent not later than 45 calendar days after the Fiscal Agent gives such notice. The resignation of the Fiscal Agent shall be effective 45 days after notice of the resignation is given as stated above or upon appointment of a successor Fiscal Agent, whichever first occurs. The Finance Director may at any time remove the Fiscal Agent and any successor Fiscal Agent by an instrument given in writing, with copy to the City. After removal or receiving a notice of resignation of the Fiscal Agent, the Finance Director may appoint a temporary Fiscal Agent or temporarily assume the duties of the Fiscal Agent to replace the former Fiscal Agent until the Finance Director appoints a successor Fiscal Agent. Any such temporary Fiscal Agent so appointed by the Finance Director shall immediately and without further act be superseded by the successor Fiscal Agent upon the appointment of and acceptance thereof by such successor.

SECTION 6.03 Protection of Fiscal Agent. The Fiscal Agent hereby agrees, provided sufficient immediately available funds have been provided to it for such purpose by or on behalf of the City, to use the funds deposited with it solely for payment of the principal of, redemption premium, if any, and interest on the Bonds as the same shall become due or become subject to earlier redemption.
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SECTION 6.04 Reliance on Documents.
(a) The Fiscal Agent may conclusively rely, as to the truth of the statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Fiscal Agent by the City.
(b) The Fiscal Agent shall not be liable for any error of judgment made in good faith. The Fiscal Agent shall not be liable for, other than its negligence or willful misconduct in connection with, any act or omission hereunder.
(c) No provision of this Fiscal Agent Agreement shall require the Fiscal Agent to expend or risk its own funds or otherwise incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or powers. (d) The Fiscal Agent may rely, or be protected in acting or refraining from acting, upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Fiscal Agent need not examine the ownership of any Bond but is protected in acting upon receipt of Bonds containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Bondowner or agent of the Bondowner. (e) The Fiscal Agent may consult with counsel, and the written advice of such counsel or any Opinion of Bond Counsel shall be full authorization and protection with respect to any action taken, suffered or omitted by it hereunder in good faith and reliance thereon. (f) The Fiscal Agent may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys and shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.
(g) In no event shall the Fiscal Agent be responsible or liable for special, indirect, consequential, punitive or incidental loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Fiscal Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. (h) The Fiscal Agent shall not be responsible or liable for any failure or delay in the performance of its obligations hereunder, that is arising out of or caused, directly or indirectly, by circumstances beyond its control, including without limitation, any act or provision of any present or future law or regulation or governmental authority; acts of God; earthquakes; fires; floods; wars; terrorism; civil or military disturbances; sabotage; epidemics; pandemic; quarantine restrictions; riots; interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications service; accidents; labor disputes; acts of civil or military authority or governmental actions; or the unavailability of the Federal Reserve Bank wire or other wire or communication facility.
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SECTION 6.05 Recitals of City. The recitals contained herein and in the Bonds shall be taken as the statements of the City, and the Fiscal Agent assumes no responsibility for their correctness.

SECTION 6.06 Fiscal Agent May Own Bonds. The Fiscal Agent, in its proprietary or any other capacity, may become the Owner or pledgee of Bonds with the same rights it would have if it were not the Fiscal Agent for the Bonds.

SECTION 6.07 Money Held by Fiscal Agent; Unclaimed Moneys. Money held by the Fiscal Agent hereunder may be commingled with other funds held by the Fiscal Agent, but shall be separately accounted for. Except as otherwise provided herein, the Fiscal Agent shall have no duties with respect to investment of funds deposited with it and shall be under no obligation to pay interest on any money received by it hereunder. Any money held in any fund created pursuant to this Fiscal Agent Agreement, or held by the Fiscal Agent in trust, for the payment of the principal of, redemption premium, if any, or interest on the Bonds and remaining unclaimed for two years after the principal of all of the Bonds has become due and payable (whether by maturity or upon prior redemption) shall be transferred to the General Fund of the City as provided and permitted by law.

SECTION 6.08 Other Transactions. The Fiscal Agent may engage in or be interested in any financial or other transaction with the City.

SECTION 6.09 Interpleader. The Fiscal Agent may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in a court of competent jurisdiction. The Fiscal Agent has the right to file an action in interpleader in any court of competent jurisdiction to determine the rights of any person claiming any interest herein.

SECTION 6.10 Indemnification. The City, to the extent permitted by law, shall indemnify the Fiscal Agent, its officers, directors, employees, and agents (“Indemnified Parties”) for, and hold them harmless against any loss, cost, claim, liability or expense arising out of or in connection with the Fiscal Agent’s acceptance or administration of the Fiscal Agent’s duties hereunder or with respect to the Bonds (except to the extent any loss, liability or expense as may be adjudicated by a court of competent jurisdiction to have been caused by the Fiscal Agent’s negligence or willful misconduct), including without limitation the cost and expense (including its counsel fees and disbursements, including the allocated costs and disbursements of internal counsel) of defending itself against any claim or liability asserted by the City, any Bondholder or any other person or entity (except such action as may be brought against the Fiscal Agent by the City) in connection with the exercise or performance of any of its powers or duties under this Fiscal Agent Agreement. The provisions of this Section 6.10 shall survive termination of this Fiscal Agent Agreement and shall continue for the benefit of any Fiscal Agent after its resignation or removal as Fiscal Agent hereunder.

SECTION 6.11 Instructions and Directions to Fiscal Agent. The Fiscal Agent shall accept and act upon written instructions and directions provided to it pursuant to the provisions of this Fiscal Agent Agreement sent by unsecured email or other similar unsecured 577
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electronic methods, provided, however, that the City shall provide to the Fiscal Agent a list of Authorized Representatives to provide such instructions and directions, which list shall be amended or replaced whenever a person is to be added or deleted as an Authorized Representative. If the City elects to give the Fiscal Agent instructions and directions by email or other electronic method) and the Fiscal Agent in its discretion elects to act upon such instructions and directions, the Fiscal Agent’s understanding of such instructions and directions shall be deemed controlling. The Fiscal Agent shall not be liable for any losses, costs or expenses arising directly or indirectly from the Fiscal Agent’s reliance upon and compliance with such instructions and directions. The City shall assume all risks of the use of such electronic methods to submit instructions and directions to the Fiscal Agent, including without limitation any risk of the Fiscal Agent acting on unauthorized instructions and directions and any risk of interception or misuse of such instructions and directions by third parties.

ARTICLE VII

MODIFICATIONS OR AMENDMENTS
SECTION 7.01 Supplemental Fiscal Agent Agreements with Consent of Owners. This Fiscal Agent Agreement and the respective rights and obligations of the City and the Owners of the Bonds hereunder may be modified or amended at any time by a Supplemental Fiscal Agent Agreement approved, executed and delivered by the City with the prior written consent of Owners owning at least 60% in aggregate principal amount of the outstanding Bonds, exclusive of any Bonds owned by the City. Notwithstanding the foregoing, no such modification or amendment shall, without the express consent of the Owner of each Bond affected, reduce the principal amount of any Bond, reduce the interest rate payable thereon, advance the earliest redemption date thereof, extend the maturity date thereof or the times for paying interest thereon or change the monetary medium in which principal and interest are payable, nor shall any modification or amendment reduce the percentage of the aggregate principal amount of such Bonds as to which consents are required for such amendment or modification. No such Supplemental Fiscal Agent Agreement shall change or modify any of the rights or obligations of any Fiscal Agent without its written assent thereto.

SECTION 7.02 Supplemental Fiscal Agent Agreements Effective Without Consent of Owners. For any one or more of the following purposes and at any time or from time to time, a Supplemental Fiscal Agent Agreement of the City may be approved, executed and delivered which, without the requirement of consent of the Owners, shall be fully effective in accordance with its terms:
(a) To add to the covenants and agreements of the City in this Fiscal Agent Agreement, other covenants and agreements to be observed by the City which are not contrary to or inconsistent with the provisions of this Fiscal Agent Agreement as theretofore in effect; (b) To add to the limitations and restrictions in this Fiscal Agent Agreement, other limitations and restrictions to be observed by the City which are not contrary to or inconsistent with the provisions of this Fiscal Agent Agreement as theretofore in effect; 578
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(c) To confirm as further assurance, any pledge under, and the subjection to any lien or pledge created or to be created by this Fiscal Agent Agreement, of any moneys, securities or funds, or to establish any additional funds, or accounts to be held under this Fiscal Agent Agreement;
(d) To cure any ambiguity, supply any omission, or cure to correct any defect or inconsistent provision in this Fiscal Agent Agreement; or (e) To amend or supplement this Fiscal Agent Agreement in any other respect, provided such Supplemental Fiscal Agent Agreement does not, in the Opinion of Bond Counsel, adversely affect the interests of the Owners.

SECTION 7.03 Effect of Supplemental Fiscal Agent Agreement. Any act done pursuant to a modification or amendment so consented to shall be binding upon the Owners of all the Bonds and shall not be deemed an infringement of any of the provisions of this Fiscal Agent Agreement, whatever the character of such act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Fiscal Agent Agreement, and after consent relating to such specified matters has been given, no Owner shall have any right or interest to object to such action or in any manner to question the propriety thereof or to enjoin or restrain the City or any officer or agent thereof from taking any action pursuant thereto.

ARTICLE VIII

MISCELLANEOUS
SECTION 8.01 Counterparts. This Fiscal Agent Agreement may be signed in several counterparts, each of which will constitute an original, but all of which shall constitute one and the same instrument.

SECTION 8.02 Continuing Disclosure. The City hereby covenants and agrees that it shall comply with and carry out all of the provisions of the Continuing Disclosure Agreement. Notwithstanding any other provision of this Fiscal Agent Agreement, failure of the City to comply with the Continuing Disclosure Agreement shall not be considered an event of default hereunder; provided that any Owner or Beneficial Owner (as defined below) may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Section 8.02. For purposes of this Section 8.02, “Beneficial Owner” means any person which has or shares the power, directly or indirectly, to make investment decisions concerning ownership of any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries).

SECTION 8.03 Notices. Unless otherwise specified herein, all notices, statements, orders, requests or other communications hereunder by any party to another shall be in writing and shall be sufficiently given and served upon the other party if delivered personally or if mailed by United States registered or certified mail, return receipt requested, postage 579
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prepaid, or if given by fax, electronically, or other means of written communication and confirmed by mail:

If to the City: City of Redondo Beach
415 Diamond Street
Redondo Beach, California 90277
Attention: Finance Director
E-mail: [email protected]
If to the Fiscal Agent: U.S. Bank Trust Company, National Association 633 West 5th Street, 24th Floor
Los Angeles, CA 90071
Attention: Fonda Hall
E-mail: [email protected]
SECTION 8.04 Governing Law. This Fiscal Agent Agreement shall be governed by the laws of the State of California.
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IN WITNESS WHEREOF, the parties hereto have caused this Fiscal Agent Agreement to be duly executed by their officers duly authorized as of the date first written above.

CITY OF REDONDO BEACH, CALIFORNIA
By
Authorized Representative
U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION, as Fiscal Agent
By
Authorized Officer
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EXHIBIT A
[FORM OF BOND]
Number UNITED STATES OF AMERICA Amount
R-__ STATE OF CALIFORNIA $_________

COUNTY OF LOS ANGELES

CITY OF REDONDO BEACH, CALIFORNIA
GENERAL OBLIGATION BONDS (MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026

INTEREST
RATE

MATURITY
DATE DATED AS OF CUSIP NO.
___% September 1, 20__ _____ __, 2026 __________
Registered Owner: CEDE & CO.

Principal Sum: ____________________ DOLLARS
The City of Redondo Beach, California (herein called the “City”), hereby acknowledges itself obligated, and promises to pay, to the registered owner identified above or registered assigns on the maturity date set forth above[ or upon redemption prior thereto], the principal sum specified above in lawful money of the United States of America, and interest thereon in like lawful money at the interest rate per annum stated above, computed on the basis of a 360-day year of twelve 30-day months, on [March 1, 2027], and thereafter on March 1 and September 1 in each year (each, an “interest payment date”), until payment of said principal sum. If this Bond is authenticated and registered on any date on or prior to [February 15, 2027], this Bond shall bear interest from the date of issuance hereof. If authenticated during the period between any Record Date (defined as the 15th day of the month preceding an interest payment date) and the close of business on its corresponding interest payment date, this Bond shall bear interest from such interest payment date. Otherwise, this Bond shall bear interest from the interest payment date immediately preceding the date of its authentication.

The principal of this Bond is payable to the registered owner hereof upon the surrender hereof at the place or places designated for the purpose by the fiscal agent/paying agent/registrar and transfer agent of the City (herein called the “Fiscal Agent”), initially U.S. Bank Trust Company, National Association. The interest on this Bond is payable to the person whose name appears on the bond registration books of the Fiscal Agent as the registered owner hereof as of the close of business on the Record Date preceding each interest payment date, whether or not such day is a business day, such interest to be paid by check mailed to such registered owner at the owner’s address as it appears on such registration books, or at such other address filed with the Fiscal Agent for that purpose. Upon written request, given no later than the Record Date immediately preceding an interest payment date, of the owner of Bonds (hereinafter defined) aggregating at least $1,000,000 in principal amount, interest shall be paid by wire transfer to an account maintained in the United States as specified by the owner in such request. 582
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So long as Cede & Co. or its registered assigns shall be the registered owner of this Bond, payment shall be made by wire transfer as provided in the Fiscal Agent Agreement hereinafter described.

This Bond is one of a duly authorized issue of bonds of like tenor (except for such variations, if any, as may be required to designate varying numbers, denominations, interest rates, maturities and redemption provisions), in the aggregate principal amount of $[PAR AMOUNT], designated as “City of Redondo Beach, California General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026” (the “Bonds”). The Bonds constitute [a portion of] the not to exceed $93,350,000 in bonds of the City authorized by the affirmative votes of more than two-thirds of the voters voting at an election duly and legally called, held and conducted in the City on November 5, 2024 (the “Bond Election”). This Bond is issued and sold by the City pursuant to and in strict conformity with applicable provisions of the following (referred to collectively herein as the “Bond Law”): (a) the Constitution and laws of the State of California, including without limitation the provisions of Article 1 of Chapter 4 of Division 4 of Title 4 of the California Government Code (the “Government Code”), and the provisions of Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code; (b) the City Charter; (c) Resolution No. CC-2407-060, entitled “A Resolution of the City Council of the City of Redondo Beach Determining that the Public Interest and Necessity Demand the Acquisition, Construction, Reconstruction, Rehabilitation or Replacement of Municipal Improvement Projects Constituting Public Infrastructure of the City, and Their Financing Through the Issuance of General Obligation Bonds,” adopted by the City Council (“City Council”) at a meeting held July 30, 2024; (d) Ordinance No. 3274-24, entitled “An Ordinance of the City of Redondo Beach Ordering the Submission of a Proposition Incurring Bonded Indebtedness to the Qualified Voters of the City of Redondo Beach at the Statewide General Election to be Held on November 5, 2024, for the Purpose of Financing the Costs of the Acquisition, Construction, Reconstruction, Rehabilitation or Replacement of Certain Municipal Improvement Projects Constituting Public Infrastructure of the City,” adopted by the City Council at a meeting held August 6, 2024, and signed by the Mayor on August 6, 2024; and (e) Resolution No. CC-26__-___, entitled “A Resolution of the City Council of the City of Redondo Beach Authorizing and Directing the Issuance and Sale of Not to Exceed $93,350,000 Aggregate Principal Amount of City of Redondo Beach, California General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026, and Approving Other Related Actions in Connection Therewith,” adopted by the City Council at a meeting held [October 1], 2026 (the “Bond Resolution”). This Bond is further subject to the more particular terms specified in the Fiscal Agent Agreement (the “Fiscal Agent Agreement”), dated as of [November] 1, 2026, between the City and the Fiscal Agent. Reference is hereby made to the Fiscal Agent Agreement and any and all amendments thereto for provisions relating to the terms on which the Bonds are issued, the rights of the owners of the Bonds, the provisions for payment of the Bonds, and any amendment of the Fiscal Agent Agreement (with or without consent of the owners of the Bonds); and all of the terms of the Fiscal Agent Agreement and the Bond Resolution are hereby incorporated herein and constitute a contract between the City and the registered owner of this Bond, to all the provisions of which the registered owner of this Bond, by acceptance hereof, agrees and consents. Capitalized undefined terms used herein have the meanings ascribed thereto in the Fiscal Agent Agreement. The Bonds are issued and sold by the City pursuant to and in strict conformity with the provisions of the 583
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Bond Law to finance the construction, improvement, furnishing and equipping of certain of its public facilities, as authorized by the Bond Election.

The Bonds are issuable as fully registered bonds without coupons in the denomination of $5,000 principal amount or any integral multiple thereof. Subject to the limitations and conditions and upon payment of the charges, if any, as provided in the Fiscal Agent Agreement, Bonds may be exchanged for a like aggregate principal amount of Bonds of the same series, maturity and interest rate of other authorized denominations.

This Bond is transferable by the registered owner hereof, in person or by attorney duly authorized in writing, at said office of the Fiscal Agent, but only in the manner, subject to the limitations and upon payment of the charges provided in the Fiscal Agent Agreement, and upon surrender and cancellation of this Bond. Upon such transfer, surrender and cancellation a new Bond or Bonds of authorized denomination or denominations for the same maturity, interest rate and principal amount will be issued to the transferee.

The City and the Fiscal Agent may treat the registered owner of this Bond as the absolute owner hereof for all purposes, and neither the City nor the Fiscal Agent shall be affected by any notice to the contrary.

The Bonds are subject to [optional and mandatory sinking fund redemption] on the terms and subject to the conditions specified in the Fiscal Agent Agreement. If this Bond is called for redemption and payment is duly provided therefor, interest shall cease to accrue on this Bond from and after the date fixed for redemption.

The Bonds represent an obligation of the City payable out of the Bond Fund of the City, and the money for the payment of the principal of this Bond, premium, if any, and the payment of interest hereon, shall be raised by taxation upon the taxable property within the City.

The City Council of the City hereby certifies and declares that the total amount of indebtedness of the City, including the principal amount of this Bond, is within the limit provided by law; that all acts, conditions and things required by law to be done or performed precedent to and in the issuance of this Bond have been done and performed in strict conformity with the laws authorizing the issuance of this Bond; and that this Bond is in substantially the form prescribed by the Fiscal Agent Agreement and by order of the City Council of the City duly made and entered on its minutes.

This Bond shall not be entitled to any benefit under the Fiscal Agent Agreement, or become valid or obligatory for any purpose, until the certificate of authentication and registration hereon endorsed shall have been signed by the Fiscal Agent. 584
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IN WITNESS WHEREOF the City Council of the City of Redondo Beach, California, has caused this CITY OF REDONDO BEACH, CALIFORNIA GENERAL OBLIGATION BOND (MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026, to be executed by the manual or facsimile signature of its Mayor, and to be countersigned by the manual or facsimile signature of the City Clerk of the City, as of the date set forth above.

By:

Mayor
of the City of Redondo Beach
Countersigned:

City Clerk
of the City of Redondo Beach
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FISCAL AGENT’S CERTIFICATE OF AUTHENTICATION

AND REGISTRATION
This Bond is one of the CITY OF REDONDO BEACH, CALIFORNIA GENERAL OBLIGATION BONDS (MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026, described in the withinmentioned Fiscal Agent Agreement and authenticated and registered on _______________, 2026.

U.S. BANK TRUST COMPANY, NATIONAL

ASSOCIATION,
as Fiscal Agent
By:

Authorized Officer

DTC LEGEND
Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the City or its agent for registration of transfer, exchange, or payment, and any Bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY

TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the Registered Owner hereof, Cede & Co., has an interest herein. 586
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ASSIGNMENT
For value received the undersigned do(es) hereby sell, assign and transfer unto ____________________________ the within-mentioned registered Bond and hereby irrevocably constitute(s) and appoint(s) ___________________________ attorney, to transfer the same on the books of the Fiscal Agent with full power of substitution in the premises. _____________________
I.D. Number
__________________________________
NOTE: The signature(s) on this Assignment
must correspond with the name(s) as
written on the face of the within registered
Bond in every particular, without alteration
or enlargement or any change whatsoever.

Dated: ______________
Signature Guarantee: _______________________________
Notice: Signature must be guaranteed
by an eligible guarantor institution.
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EXHIBIT B
REQUISITION NO. ____

CITY OF REDONDO BEACH, CALIFORNIA
GENERAL OBLIGATION BONDS (MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026

REQUISITION FROM PROJECT ACCOUNT/COSTS OF ISSUANCE ACCOUNT

OF THE CAPITAL PROJECT FUND
U.S. Bank Trust Company, National Association, as fiscal agent (the “Fiscal Agent”), is hereby directed to disburse from the [Costs of Issuance Account/Project Account] of the Capital Project Fund of the City of Redondo Beach, California General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026, established by the Fiscal Agent Agreement dated as of [November] 1, 2026, between the Fiscal Agent and City of Redondo Beach (the “City”), to the payee, designated on Exhibit A attached hereto and by this reference incorporated herein, at the address set forth below such payee name, the respective sums set forth opposite such payees, in payment for the obligation described on said Exhibit A.

Each obligation shown on Exhibit A has been properly verified and approved by the City and is a proper charge against the [Costs of Issuance Account/Project Account] of the Capital Project Fund.

The amount is due and payable under purchase order, contract or other authorization and has not formed the basis of any prior request for payment. The conditions to the release of this amount from the [Costs of Issuance Account/Project Account] of the Capital Project Fund are satisfied.

There has not been filed with nor served upon the City notice of any lien, right to lien or attachment upon, or stop notice or claim affecting the right to receive payment of the amount specified above which has not been released or will not be released simultaneously with the payment of such amount, other than materialmen’s or mechanic’s liens accruing by mere operation of law.

Payments shall be made by check or wire transfer in accordance with the payment instructions set forth in Exhibit A attached or in the attached invoices submitted in accordance therewith, and the Fiscal Agent may rely on such payment instructions though given by the City with no duty to investigate or inquire as to the authenticity of the attached invoice or the payment instructions contained therein.

Dated: CITY OF REDONDO BEACH
By:

Authorized Representative
588
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PRELIMINARY OFFICIAL STATEMENT DATED _________, 2026
NEW ISSUE - BOOK-ENTRY ONLY RATING: S&P: “AA+”
See “RATING” herein.

In the opinion of Best Best & Krieger LLP, Bond Counsel, based upon an analysis of existing laws, regulations, rulings, and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federal individual alternative minimum tax; however, Bond Counsel observes that interest on the Bonds may impact the federal alternative minimum tax applicable to certain corporations. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Bonds. See “TAX MATTERS” herein. $____________

CITY OF REDONDO BEACH, CALIFORNIA
General Obligation Bonds
(Measure FP Public Safety Improvements)
Series 2026
Dated: Date of Delivery Due: September 1, as set forth on the inside front cover.

The City of Redondo Beach, California (the “City”) is issuing its General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026 (the “Bonds”). The Bonds will be issued by the City under the Government Code of the State of California, the Charter of the City (the “Charter”), and a resolution adopted by the City Council of the City. The issuance of the Bonds has been authorized at an election of the registered voters of the City on November 5, 2024, at which more than two-thirds of the persons voting on Measure FP voted to authorize the issuance and sale of general obligation bonds to provide funds for certain public safety improvements of the City. See “THE BONDS – Authority for Issuance; Purposes.” The proceeds of the Bonds will be used to finance certain public improvements as described herein, to fund all or a portion of the interest on the Bonds through ________, and to pay certain costs related to the issuance of the Bonds. See “THE BONDS – Authority for Issuance; Purposes” and “ESTIMATED SOURCES AND USES OF FUNDS.” The Bonds will be dated and bear interest from their date of delivery until paid in full at the rates shown in the maturity schedule on the page immediately following the cover hereof. Interest on the Bonds will be payable on March 1 and September 1 of each year, commencing March 1, 2027. Principal will be paid at maturity as shown on the page immediately following the cover. See “THE BONDS – Payment of Interest and Principal.” The Bonds will be issued only in fully registered form without coupons, and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). Individual purchases of the Bonds will be made in book-entry form only, in denominations of $5,000 or any integral multiple thereof. Payments of principal of and interest on the Bonds will be made by U.S. Bank Trust Company, National Association, as Fiscal Agent, to DTC, which in turn is required to remit such principal and interest to the DTC Participants for subsequent disbursement to the beneficial owners of the Bonds. See “THE BONDS – Form and Registration.”
The Bonds will be subject to redemption prior to maturity, as described herein. See “THE BONDS – Redemption.” The Bonds are general obligations of the City, payable solely from ad valorem property taxes levied by the City and collected by the County of Los Angeles (the “County”). The City Council is empowered and is obligated to annually levy ad valorem taxes for the payment of interest on, and principal of, the Bonds upon all property subject to taxation by the City, without limitation of rate or amount (except certain personal property that is taxable at limited rates). See “SECURITY FOR THE BONDS.”
This cover page contains certain information for general reference only. It is not intended to be a summary of the security or terms of the Bonds. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision.

The Bonds are expected to be sold by competitive sale on _______, 2026, pursuant to the Official Notice of Sale dated ______, 2026. The Bonds are offered when, as and if executed and delivered, subject to approval by Best Best & Krieger LLP, Riverside, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the City by the City Attorney and by Best Best & Krieger LLP, Los Angeles, California, as Disclosure Counsel. It is expected that the Bonds will be available for delivery through the facilities of DTC by Fast Automated Securities Transfer (FAST) on or about ________, 2026.

Dated: ________, 2026
589
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$________

CITY OF REDONDO BEACH, CALIFORNIA
General Obligation Bonds
(Measure FP Public Safety Improvements)
Series 2026
Maturity Date
(September 1)
Principal
Amount
Interest
Rate Yield Price
CUSIP
Number†
$______ _____% Term Bond maturing September 1, 20____; Yield: ______%; Price: _______; CUSIP†: ______ $______ _____% Term Bond maturing September 1, 20____; Yield: ______%; Price: _______; CUSIP†: ______ _____________________
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein are provided by CUSIP Global Services, managed by FactSet Research Systems Inc. on behalf of the American Bankers Association. CUSIP numbers have been assigned by an independent company not affiliated with the City and are included solely for the convenience of the holders of the Bonds. None of the City, its Municipal Advisor or the Underwriter is responsible for the selection or use of these CUSIP numbers and no representation is made as to their correctness on the Bonds or as indicated above. The CUSIP number for a specific Bond is subject to being changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of the Bonds. 590
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No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representations other than those contained herein, and if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction which it is unlawful for such person to make such offer, solicitation or sale.

This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Statements contained in this Official Statement which involve estimates, projections, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of facts. The information and expressions of opinion herein are subject to change without notice, and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the information or opinions set forth herein or in the affairs of the City since the date hereof.

The information in this Official Statement has been provided by the City and sources the City considers reliable.

The Underwriter (as defined in “UNDERWRITING”) has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

The information set forth herein other than that provided by the City, although obtained from sources which are believed by the City to be reliable, is not guaranteed by the City as to accuracy or completeness. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date thereof. This Official Statement is submitted with respect to the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the City. All summaries of documents and laws are made subject to the provisions thereof and do not purport to be complete statements of any or all such documents.

This Official Statement, including any supplement or amendment hereto, is intended to be filed with the Municipal Securities Rulemaking Board through the Electronic Municipal Market Access (EMMA) website. The City also maintains a website. However, the information presented therein is not part of this Official Statement and should not be relied upon in making investment decisions with respect to the Bonds.

References to website addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience. Unless specified otherwise, such websites and the information or links contained therein are not incorporated into, and are not part of, this Official Statement for purposes of, and as that term is defined in, SEC Rule 15c2-12.

The Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon the exemption contained in Section 3(a)(2) of such Act. The Resolution and the Fiscal Agent Agreement have not been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon an exemption contained in such Act. _______________________________________

CAUTIONARY STATEMENTS REGARDING

FORWARD-LOOKING STATEMENTS IN THIS OFFICIAL STATEMENT
Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget,” “project,” “projection” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The City does not plan to issue any updates or revisions to those forward-looking statements if or when its expectations or events, conditions or circumstances on which such statements are based occur. 591
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CITY OF REDONDO BEACH, CALIFORNIA

CITY COUNCIL
Jim Light, Mayor
Brad Waller, Mayor Pro Tem
Scott Behrendt, Council Member
Chadwick Castle, Council Member
Paige Kaluderovic, Council Member
Zein Obagi, Jr., Council Member

OTHER ELECTED OFFICIALS
Eugene Solomon, City Treasurer
Eleanor Manzano, City Clerk
Joy A. Ford, City Attorney

CITY STAFF
Mike Witzansky, City Manager
Stephanie Lazicki Meyer, Finance Director

SPECIAL SERVICES

BOND COUNSEL
Best Best & Krieger LLP
Riverside, California

DISCLOSURE COUNSEL
Best Best & Krieger LLP
Los Angeles, California

MUNICIPAL ADVISOR
Public Resources Advisory Group
Los Angeles, California

FISCAL AGENT
U.S. Bank Trust Company, National Association
Los Angeles, California
592
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TABLE OF CONTENTS
Page
INTRODUCTION ........................................................................................................................................ 1 General............................................................................................................................................. 1 The City ........................................................................................................................................... 1 Authority for Issuance...................................................................................................................... 1 The Bonds........................................................................................................................................ 2 Security of the Bonds....................................................................................................................... 2 No Reserve Fund ............................................................................................................................. 3 Continuing Disclosure ..................................................................................................................... 3 Summaries Not Definitive ............................................................................................................... 3 THE BONDS ................................................................................................................................................ 3 Authority for Issuance; Purposes..................................................................................................... 3 Form and Registration...................................................................................................................... 3 Payment of Interest and Principal.................................................................................................... 4 Redemption...................................................................................................................................... 4 Exchange of Bonds.......................................................................................................................... 7 Capital Project Fund ........................................................................................................................ 7 Defeasance ....................................................................................................................................... 7 PLAN OF FINANCE.................................................................................................................................... 9 ESTIMATED SOURCES AND USES OF FUNDS .................................................................................. 10 DEBT SERVICE SCHEDULE................................................................................................................... 11 SECURITY FOR THE BONDS................................................................................................................. 12 General........................................................................................................................................... 12 Flow of Funds Under the Resolution............................................................................................. 12 Pledge............................................................................................................................................. 14 Statutory Lien on Taxes (Senate Bill 222)..................................................................................... 14 PROPERTY TAXATION .......................................................................................................................... 14 General........................................................................................................................................... 14 Property Tax Collection Procedures.............................................................................................. 14 Taxation of State-Assessed Utility Property.................................................................................. 15 Assessed Valuation ........................................................................................................................ 16 Appeals of Assessed Value............................................................................................................ 19 Tax Rates ....................................................................................................................................... 20 Principal Property Taxpayers......................................................................................................... 21 Direct and Overlapping Debt......................................................................................................... 21

CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS................................................................................................................................... 23 Article XIII A of the State Constitution......................................................................................... 23 Article XIII B of the State Constitution – Gann Limit .................................................................. 24 Articles XIII C and XIII D of the State Constitution – Proposition 218 and Proposition 26 ........ 24 Proposition 1A............................................................................................................................... 26 Proposition 22................................................................................................................................ 27 593
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Future Initiatives............................................................................................................................ 27 RISK FACTORS ........................................................................................................................................ 28 Assessed Value of Taxable Property ............................................................................................. 28 Possible Limitations on Remedies; Bankruptcy ............................................................................ 29 Changing Economic Conditions.................................................................................................... 31 Seismic Factors.............................................................................................................................. 32 Risk of Floods, Fire or Tsunami .................................................................................................... 32 Loss of Tax Exemption.................................................................................................................. 32 Cybersecurity................................................................................................................................. 33 Public Health Emergencies............................................................................................................ 33 Federal Legislation and Policy Risks............................................................................................. 33 FINANCIAL STATEMENTS.................................................................................................................... 34 TAX MATTERS......................................................................................................................................... 34 APPROVAL OF LEGALITY..................................................................................................................... 36 LITIGATION.............................................................................................................................................. 36 CONTINUING DISCLOSURE.................................................................................................................. 36 RATING ..................................................................................................................................................... 37 UNDERWRITING ..................................................................................................................................... 37 MUNICIPAL ADVISOR............................................................................................................................ 37 EXECUTION AND DELIVERY............................................................................................................... 38

APPENDIX A - CITY OF REDONDO BEACH FINANCIAL AND

DEMOGRAPHIC INFORMATION
A-1

APPENDIX B - CITY OF REDONDO BEACH ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED JUNE 30, 2025
B-1
APPENDIX C - CITY OF REDONDO BEACH INVESTMENT POLICY C-1 APPENDIX D - PROPOSED FORM OF OPINION OF BOND COUNSEL D-1 APPENDIX E - BOOK-ENTRY SYSTEM E-1
APPENDIX F - FORM OF CONTINUING DISCLOSURE AGREEMENT F-1 594
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1 OFFICIAL STATEMENT
$_________

CITY OF REDONDO BEACH, CALIFORNIA
General Obligation Bonds
(Measure FP Public Safety Improvements)
Series 2026

INTRODUCTION
This Introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement.

General
The purpose of this Official Statement, including the cover page and appendices hereto, is to provide certain information with the public offering by the City of Redondo Beach (the “City”) of $_________ aggregate principal amount of its General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026 (the “Bonds”).

The Bonds will be payable from ad valorem taxes levied upon all taxable property in the City. The City Council of the City (the “City Council”) has the power and is obligated to levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property within the City subject to taxation without limitation as to the rate or the amount (except with respect to certain personal property which is taxable at limited rates). See “SECURITY FOR THE BONDS.” For information on the City’s tax base, tax collection system and property tax revenues, see also “PROPERTY TAXATION” herein and “CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS.”
The Bonds are being issued to finance the reconstruction of Fire Stations No. 1 and 2 and the modernization of Police facilities, including the Headquarters and Annex buildings, including design, construction, acquisition, improvement and renovation thereto, as described herein, to fund all or a portion of interest on the Bonds through _________________, and to pay certain costs related to the issuance of the Bonds. See “THE BONDS – Authority for Issuance; Purposes” and “SOURCES AND USES OF FUNDS.” The City
The City was incorporated in 1892 and adopted a charter in 1949. The City is located on the coastal edge of Los Angeles County, approximately 20 miles from downtown Los Angeles and approximately seven miles south of Los Angeles International Airport and spans 6.3 square miles. The City’s population as of January 1, 2026 was 68,460. The City remains a mostly residential, non-industrial community. See APPENDIX A - “CITY OF REDONDO BEACH FINANCIAL AND DEMOGRAPHIC INFORMATION” herein for further information regarding the City.

Authority for Issuance
The Bonds were authorized at an election of the registered voters of the City held on November 5, 2024, at which more than two-thirds of the persons voting on the measure voted to authorize the issuance and sale of not to exceed $93,350,000 principal amount of general obligation bonds (“Measure FP Authorization”), to fund the reconstruction of Fire Stations No. 1 and 2 and the modernization of Police facilities, including the Headquarters 595
Error! Unknown document property name.
2 and Annex buildings. The Bonds represent the only series of bonds to be sold and issued under the Measure FP Authorization.

The Bonds will be issued (a) under the provisions of Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with section 53506 et seq.) and Chapter 4 (commencing with section 43600) of Division 4 Title 4 of the California Government Code and the Charter and (b) pursuant to Ordinance No. 3274-24 passed by the City Council on August 6, 2024 (the “Ordinance”). The City authorized the issuance of the Bonds by resolution adopted by the City Council of the City on October 13, 2026 (the “Resolution”).

In addition, the Bonds will be issued pursuant to a Fiscal Agent Agreement, dated as of November 1, 2026 (the “Fiscal Agent Agreement”), by and between the City and U.S. Bank Trust Company, National Association, as Fiscal Agent (the “Fiscal Agent”).

The Bonds
Interest on the Bonds will be payable on each March 1 and September 1 (an “Interest Payment Date”) to maturity or prior redemption, commencing March 1, 2027, at the interest rates shown on the pages immediately following the cover hereof. Interest will be calculated on the basis of a 360-day year comprised of twelve 30-day months. The Fiscal Agent will act as Fiscal Agent, paying agent and registrar with respect to the Bonds. The interest on the Bonds will be payable in lawful money of the United States to the person whose name appears on the Bond registration books of the Fiscal Agent as the owner thereof as of the close of business on the fifteenth day of the month immediately preceding an interest payment date (the “Record Date”), whether or not such day is a business day.

The Bonds will mature on the dates shown on the pages immediately following the cover page hereof. The Bonds will be subject to redemption prior to maturity, as described below. See “THE BONDS – Redemption” below. The principal of the Bonds will be payable in lawful money of the United States to the owner thereof upon the surrender thereof at maturity or earlier redemption at the office of the Fiscal Agent.

Security of the Bonds
The Bonds are general obligations of the City payable solely from ad valorem property taxes levied by the City and collected by the County. The City Council is empowered and is obligated to annually levy ad valorem taxes for the payment of interest on, and principal of, the Bonds upon all property subject to taxation by the City, without limitation of rate or amount (except with respect to certain personal property that is taxable at limited rates).

Pursuant to Section 53515 of the California Government Code, all general obligations bonds issued by local agencies will be secured by a statutory lien on all revenues received pursuant to the levy and collection of the tax.

Pursuant to the Resolution, the City has covenanted to levy an ad valorem property tax in each Fiscal Year in accordance with the applicable law to pay the principal of, redemption premium, if any, and interest on the Bonds due and payable, and has irrevocably pledged the ad valorem taxes levied and collected pursuant to the Resolution for the payment of the principal of and interest on the Bonds when and as the same shall become due and payable.

See “SECURITY FOR THE BONDS.”
Under the Resolution, the City is not obligated to pay the debt service on the Bonds from any sources other than as described above. This Official Statement, including Appendix A hereto, provides information on the City’s overall operations and finances with an emphasis on its General Fund and therefore includes information on revenues and other funds that are not pledged to the Bonds under the Resolution and that should not be considered available to pay debt service on the Bonds. 596
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3 No Reserve Fund
No reserve fund will be established for the Bonds.

Continuing Disclosure
The City will covenant for the benefit of the Owners and beneficial owners of the Bonds to provide certain financial information and operating data relating to the City and notices of the occurrence of certain enumerated events to the Municipal Securities Rulemaking Board (the “MSRB”) pursuant to a Continuing Disclosure Agreement (the “Continuing Disclosure Agreement”). These covenants are being made in order to assist the underwriter of the Bonds in complying with Rule 15c2-12, as amended (the “Rule”) of the U.S. Securities and Exchange Commission (“SEC”) promulgated under the Securities Exchange Act of 1934, as amended. See “CONTINUING DISCLOSURE” and “APPENDIX F - FORM OF CONTINUING DISCLOSURE AGREEMENT” herein.

Summaries Not Definitive
Brief descriptions and summaries of the Bonds, the Resolution, the Fiscal Agent Agreement, provisions of the constitution and statutes of the State, the Charter and City ordinances, and other documents are provided herein.

Such descriptions and summaries do not purport to be comprehensive or definitive. All references herein to the Bonds and such other documents are qualified in their entirety by reference to the actual documents. Copies of documents referred to herein and information concerning the Bonds are available from the Finance Director, City of Redondo Beach, 415 Diamond Street, Redondo Beach, California 90277; telephone (310) 372-1171. The City may impose a charge for copying, mailing and handling.

THE BONDS
Authority for Issuance; Purposes
General. The Bonds will be issued under the California Government Code, the Charter and pursuant to the Ordinance and the Resolution.

The Bonds will constitute the first and only issuance of bonds from a not to exceed authorized amount of $93,350,000 of City of Redondo Beach, California General Obligation Bonds, Series 2026, duly approved by more than two-thirds of the voters voting on Measure FP at an election held on November 5, 2024 (“Measure FP”), to provide funds for the purposes authorized in Measure FP, which are summarized as follows: to fund the reconstruction of Fire Stations No. 1 and 2 and the reconstruction and modernization of Police facilities, including the Headquarters and Annex buildings. See “PLAN OF FINANCE” herein.

Form and Registration
The Bonds will be issued in the principal amounts set forth on the pages immediately following the cover hereof, in the denomination of $5,000 each or any integral multiple thereof, and will be dated their date of delivery.

The Bonds will be issued in fully registered form, without coupons. The Bonds will be initially registered in the name of Cede & Co. as registered owner and nominee for The Depository Trust Company (“DTC”), which is required to remit payments of principal and interest to the DTC Participants for subsequent disbursement to the beneficial owners of the Bonds. See “APPENDIX E – BOOK-ENTRY SYSTEM.” 597
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4 Payment of Interest and Principal
Interest on the Bonds will be payable on each March 1 and September 1 to maturity or prior redemption, commencing March1, 2027, at the interest rates shown on the pages immediately following the cover hereof.

Interest will be calculated on the basis of a 360-day year comprised of twelve 30-day months. U.S. Bank Trust Company, National Association will act as Fiscal Agent, paying agent and registrar with respect to the Bonds. The interest on the Bonds will be payable in lawful money of the United States to the person whose name appears on the Bond registration books of the Fiscal Agent as the owner thereof as of the Record Date, whether or not such day is a business day. Each Bond authenticated on or before February 15, 2027 shall bear interest from the date of said Bond. Each Bond authenticated during the period between any Record Date and the close of business on its corresponding Interest Payment Date shall bear interest from such Interest Payment Date. Any other Bond shall bear interest from the Interest Payment Date immediately preceding the date of its authentication. If, at the time of authentication of any Bond, interest is in default on any outstanding Bonds, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on the outstanding Bonds.

The interest on the Bonds shall be payable in lawful money to the person or entity whose name appears on the bond registration books of the Fiscal Agent as the Owner thereof as of the close of business on the applicable Record Date for each Interest Payment Date whether or not such day is a Business Day. Payment of the interest on any Bond shall be made by check mailed by first class mail on each Interest Payment Date, whether or not such day is a Business Day, to such Owner at such Owner’s address as it appears on such registration books or at such address as the Owner may have filed with the Fiscal Agent for that purpose on or before a Record Date; or upon written request of the Owner of interest-bearing Bonds aggregating not less than $1,000,000 in principal amount, given no later than the Record Date immediately preceding the applicable Interest Payment Date, by wire transfer in immediately available funds to an account maintained in the United States at such wire address as such Owner shall specify in its written notice. So long as Cede & Co. or its registered assigns shall be the registered owner of any of the Bonds, payment shall be made thereto by wire transfer as provided in the Fiscal Agent Agreement. See “APPENDIX E - BOOK-ENTRY SYSTEM.”
The Bonds will mature on the dates shown on the pages immediately following the cover page hereof. The Bonds will be subject to redemption prior to maturity, as described below. See “– Redemption” below. The principal of the Bonds will be payable in lawful money of the United States to the owner thereof upon the surrender thereof at maturity or earlier redemption at the office of the Fiscal Agent.

Redemption
Optional Redemption
The Bonds maturing on or after September 1, 20___, are subject to optional redemption prior to their respective stated maturity dates, at the option of the City, from any source of available funds, as a whole or in part on any date on or after September 1, 20___, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed, without premium, together with accrued interest thereon to the date fixed for redemption.

Mandatory Redemption of the Bonds
The Bonds maturing on September 1, 20___ (“20___ Term Bonds”) are subject to mandatory sinking fund redemption on September 1 of each year, commencing September 1, 20___, at a redemption price equal to 100% of their principal amount, together with accrued interest thereon to the date fixed for redemption, without premium, on the dates and in the aggregate principal amounts listed below. 598
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5 Mandatory Sinking Fund
Redemption Dates
(September 1)
Sinking Fund Payment
Principal Amount
__________________
* Final Maturity
In the event that a portion of the 20___ Term Bonds is optionally redeemed prior to maturity, the remaining mandatory sinking fund payments shown above shall be reduced proportionately or as otherwise directed by the City, in integral multiples of $5,000 principal amount, with respect to the portion of such 20___ Term Bonds optionally redeemed.

The Bonds maturing on September 1, 20___ (“20___ Term Bonds”) are subject to mandatory sinking fund redemption on September 1 of each year, commencing September 1, 20___, at a redemption price equal to 100% of their principal amount, together with accrued interest thereon to the date fixed for redemption, without premium, on the dates and in the aggregate principal amounts listed below.

Mandatory Sinking Fund
Redemption Dates
(September 1)
Sinking Fund Payment
Principal Amount
__________________
* Final Maturity
In the event that a portion of the 20___ Term Bonds is optionally redeemed prior to maturity, the remaining mandatory sinking fund payments shown above shall be reduced proportionately or as otherwise directed by the City, in integral multiples of $5,000 principal amount, with respect to the portion of such 20___ Term Bonds optionally redeemed.

The principal of and interest on the Bonds subject to mandatory redemption will be paid from the Bond Fund established under the Resolution. In lieu of any such mandatory redemption for Bonds, at any time prior to the selection of Bonds for mandatory redemption, the City may apply amounts on deposit in the Bond Subaccount to make such payment to the purchase, at public or private sale, of Bonds subject to such mandatory redemption, and when and at such prices not in excess of the principal amount thereof (including sales commission and other charges but excluding accrued interest), as the City may determine.

Selection of Bonds for Redemption
If less than all of the Bonds are called for redemption, such Bonds will be redeemed in inverse order of maturities or as otherwise directed by the City. If less than all of the Bonds of any given maturity are called for redemption, the portions of such Bonds of a given maturity to be redeemed will be determined by lot by the Fiscal Agent. For purposes of such selection, each Bond shall be deemed to consist of individual Bonds of denominations of $5,000 principal amount each, which may be separately redeemed. 599
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6 Notice of Redemption
The date on which Bonds that are called for redemption are to be presented for redemption is called the “Redemption Date.” The Fiscal Agent will mail, or cause to be mailed, notice of any redemption of the Bonds to be redeemed, postage prepaid, to the respective registered owners thereof at the addresses appearing on the bond registration books not less than 20 days and not more than 60 days prior to the Redemption Date.

Notice of redemption also will be given, or caused to be given, by the Fiscal Agent, by (i) registered or certified mail, postage prepaid, (ii) overnight delivery service, or (iii) to the extent applicable to the intended recipient, email or similar electronic means, to (a) all organizations registered with the Securities and Exchange Commission as securities depositories and (b) such other services or organizations as may be required in accordance with the Continuing Disclosure Agreement. See “CONTINUING DISCLOSURE” and Appendix F – “FORM OF CONTINUING DISCLOSURE AGREEMENT” herein.

Each notice of redemption will (a) state the Redemption Date; (b) state the redemption price; (c) state the maturity dates of the Bonds called for redemption, and, if less than all of any such maturity is called for redemption, the distinctive numbers of the Bonds of such maturity to be redeemed, and in the case of a Bond redeemed in part only, the portions of the principal amount thereof to be redeemed; (d) state the CUSIP number, if any, of each Bond to be redeemed; (e) require that such Bonds be surrendered by the owners at the office of the Fiscal Agent; and (f) give notice that interest on such Bonds or portions of such Bonds to be redeemed will cease to accrue after the designated Redemption Date. Any notice of optional redemption may be conditioned on the receipt of funds or any other event specified in the notice. See “– Conditional Notice; Right to Rescind Notice of Optional Redemption” below.

The actual receipt by the owner of any Bond of such notice of redemption will not be a condition precedent to redemption of such Bond, and failure to receive such notice, or any defect in such notice, will not affect the validity of the proceedings for the redemption of such Bond or the cessation of the accrual of interest on such Bond on the Redemption Date.

Effect of Notice of Redemption
When notice of optional redemption has been given as described above, and when the amount necessary for the redemption of the Bonds called for redemption (principal, premium, if any and accrued interest to the Redemption Date) is set aside for that purpose in the Redemption Account established under the Fiscal Agent Agreement, the Bonds designated for redemption will become due and payable on the Redemption Date, and upon presentation and surrender of such Bonds at the place specified in the notice of redemption, such Bonds will be redeemed and paid at said redemption price out of the related Redemption Account. No interest will accrue on such Bonds called for redemption after the Redemption Date and the registered owners of such Bonds will look for payment of such Bonds only to the related Redemption Account. All Bonds redeemed will be canceled immediately by the Fiscal Agent and will not be reissued.

Moneys held in a Redemption Account will be invested by the Fiscal Agent as directed by the City Treasurer pursuant to the City’s policies and guidelines for investment of moneys in the General Fund of the City. See Appendix C – “CITY OF REDONDO BEACH INVESTMENT POLICY.” Conditional Notice; Right to Rescind Notice of Optional Redemption Any notice of optional redemption may provide that such redemption is conditioned upon: (i) deposit of sufficient moneys in the Redemption Account to redeem the Bonds called for redemption on the anticipated Redemption Date, or (ii) the occurrence of any other event specified in the notice of redemption. In the event that such conditional notice of optional redemption has been given substantially and on the scheduled Redemption Date 600
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7 (i) sufficient moneys to redeem the Bonds called for optional redemption on the Redemption Date have not been deposited, or (ii) any other event specified in the notice of redemption did not occur, such Bonds for which notice of conditional optional redemption was given will not be redeemed on the anticipated Redemption Date and will remain Outstanding for all purposes of the Resolution and the redemption not occurring will not constitute a default under the Resolution.

In addition, the City may rescind any optional redemption and notice thereof for any reason on any date prior to any Redemption Date by causing written notice of the rescission to be given to the Registered Owner of all Bonds so called for redemption. Notice of such rescission of redemption will be given in the same manner notice of redemption was originally given. The actual receipt by the Registered Owner of any Bond of notice of such rescission will not be a condition precedent to rescission, and failure to receive such notice or any defect in such notice so mailed will not affect the validity of the rescission.

Exchange of Bonds
Bonds may be exchanged at the office of the Fiscal Agent designated for that purpose, for a like aggregate principal amount of Bonds of other authorized denominations of the same maturity and interest rate. The Fiscal Agent shall require the payment by the Bondowner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. No exchange of Bonds shall be required to be made by the Fiscal Agent during the period from the close of business on the Record Date next preceding any Interest Payment Date or date fixed for redemption to and including such Interest Payment Date or the date fixed for redemption.

Capital Project Fund
The Resolution establishes a project fund for the Bonds (the “Capital Project Fund”). The Capital Project Fund will be maintained by the Fiscal Agent as a separate account, segregated and distinct from all other accounts.

The Fiscal Agent may establish such accounts and subaccounts within the Capital Project Fund as may be necessary or convenient in connection with the administration of the Project or the Bonds.

Project Account. Within the Capital Project Fund, there is established a Project Account to be maintained and administered by the Fiscal Agent. All of the proceeds of the sale of the Bonds (excluding premium and accrued interest received thereon, unless otherwise directed by an Authorized Officer) shall be deposited by the Fiscal Agent to the credit of the Project and shall be applied exclusively to the objects and purposes of the Project in accordance with the Fiscal Agent Agreement.

When such objects and purposes have been accomplished, any moneys remaining in the Project Account, shall be transferred to the Bond Fund established and applied to the payment of the principal of and interest on the Bonds (see “SECURITY FOR THE BONDS – Flow of Funds Under the Resolution”).

Costs of Issuance Account. Within the Capital Project Fund, there is established a Costs of Issuance Account to be maintained and administered by the Fiscal Agent. Amounts in the Costs of Issuance Account may be applied to the payment of costs of issuance of the Bonds, including, without limitation, underwriter’s discount, bond and financial printing expenses, mailing and publication expenses, rating agency fees, and the fees and expenses of fiscal agents, paying agents, registrars, financial consultants, bond counsel and disclosure counsel, in accordance the Fiscal Agreement.

Defeasance
Payment of all or any portion of the Bonds may be provided for prior to such Bonds’ respective stated maturities by irrevocably depositing with the Fiscal Agent (or any commercial bank or trust company designated 601
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8 by the Finance Director to act as escrow agent with respect thereto): (a) an amount of cash equal to the principal amount of all of such Bonds or a portion thereof, and all unpaid interest thereon to maturity, except that in the case of Bonds which are to be redeemed prior to such Bonds’ respective stated maturities and in respect of which notice of such redemption shall have been given as provided in the Fiscal Agent Agreement or an irrevocable election to give such notice shall have been made by the City, the amount to be deposited shall be the principal amount thereof, all unpaid interest thereon to the Redemption Date, and any premium due on such Redemption Date; or (b) Defeasance Securities not subject to call, except as provided below in the definition thereof, maturing and paying interest at such times and in such amounts; together with interest earnings and cash, if required, as will, without reinvestment, as certified by an independent certified public accountant, be fully sufficient to pay the principal and all unpaid interest to maturity, or to the Redemption Date, as the case may be, and any premium due on the Bonds to be paid or redeemed, as such principal and interest come due; provided, that, in the case of the Bonds which are to be redeemed prior to maturity, notice of such redemption shall be given as provided in the Fiscal Agent Agreement or an irrevocable election to give such notice shall have been made by the City; then, all obligations of the City with respect to such outstanding Bonds shall cease and terminate, except only the tax covenants in the Resolution and the Fiscal Agent Agreement and the obligation of the City to pay or cause to be paid from the funds deposited pursuant to clause (a) or (b) above, to the owners of such Bonds all sums due with respect thereto; and provided further, that the City shall have received an opinion of nationally recognized bond counsel, that provision for the payment of such Bonds has been made in accordance with the Fiscal Agent Agreement.

If at any time the City shall pay or cause to be paid or there shall otherwise be paid to the Owners of any or all outstanding Bonds all of the principal, interest and premium, if any, represented by such Bonds when due, or as described above, or as otherwise provided by law, then such Owners shall cease to be entitled to the obligation of the City to levy and collect taxes to pay the Bonds as described in the Fiscal Agent Agreement, and such obligation and all agreements and covenants of the City to such Owners hereunder and under the Bonds shall thereupon be satisfied and discharged and shall terminate, except only that the City shall remain liable for payment of all principal, interest and premium, if any, represented by such Bonds, but only out of moneys on deposit in the Bond Fund or otherwise held in trust for such payment, provided, that the unclaimed moneys provisions described in the Fiscal Agent Agreement shall apply in all events.

As used in this section, the following terms have the meanings given below:
“Defeasance Securities” means (i) direct, non-callable obligations of the United States Treasury; (ii) direct non-callable and non-prepayable obligations which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest; (iii) non-callable, non-prepayable coupons from the above securities which are stripped pursuant to United States Treasury programs; (iv) non-callable and non-prepayable (or irrevocably called to a specified redemption date) refunded municipal bonds that are backed by an escrow funded with obligations of or guaranteed by the United States of America; (v) Resolution Funding Corporation (REFCORP) securities consisting of interest components stripped by the Federal Reserve Bank of New York; (vi) United States State and Local Government Securities (SLGS); and (vii) the following non-callable, non-prepayable obligations of federal government-sponsored agencies that are not backed by the full faith and credit of the U.S. Government:

Federal Home Loan Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Tennessee Valley Authority, Farm Credit System, Washington Metropolitan Area Transit Authority, United States Import-Export Bank, United States Department of Housing and Urban Development, Farmers Home Administration, General Services Administration and United States Maritime Administration (provided such agency security has a rating when purchased at the same level as obligations of the United States Treasury). 602
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9 PLAN OF FINANCE
The City of Redondo Beach’s Measure FP Project is a November 5, 2024 voter-approved $93,350,000 general obligation (GO) bond measure to fund the reconstruction of Fire Stations No. 1 and 2 and the modernization of Police facilities, including the Headquarters and Annex buildings, in order to enhance public safety operations for the community.

The reconstruction of Fire Stations No. 1 and 2 (“Fire Station Project”) is a two-site, multi-phase initiative to replace the existing Fire Station No. 1 at 401 S. Broadway, Redondo Beach, CA 90277 and Fire Station No. 2 at 2400 Grant Avenue, Redondo Beach, CA 90278 with modern, high-performance, and operationally resilient facilities that meet current and future service demands. The City envisions modern, resilient, durable, and operationally efficient fire stations that will enhance the City’s ability to protect lives and property; support firefighter health and readiness; reflect best practices in fire service design and sustainability; and meet the needs of the community for the foreseeable future.

For Fire Station 1, the plan includes replacement of the existing 11,474 square foot facility with a roughly 15,000 square foot new station that will continue to house the Fire Department administration and command staff along with a dozen front-line personnel per shift, including the division/battalion chiefs, captains, engineers, and firefighters/paramedics. Fire Station 2 redesign will involve replacement of the existing 7,753 square foot facility with a roughly 13,000 square foot new station that will continue to house the Fire Department training unit and ten front-line personnel per shift, including the captains, engineers, and firefighters/paramedics.

Replacement of the existing fire stations with new facilities will be designed around the City’s identified programmatic space requirements, including modern apparatus bays, living quarters/dorms, training areas, administrative offices and support spaces. Site enhancements will include upgraded utilities, site circulation, drive aprons, wash areas and landscaping designed to enhance safety, efficiency and neighborhood compatibility.

Furthermore, the City has prioritized the incorporation of durable, energy-efficient systems, inclusive of an emergency generator, and design strategies that reduce long-term maintenance costs and improve building performance under emergency and post-disaster conditions, with the flexibility to accommodate future technology integration, apparatus modifications, and evolving operational demands without major disruption. The estimated direct construction cost is $26,300,000 and key cost components include but are not limited to: construction; geotechnical (e.g., soils reports); deputy testing/inspections; architectural and engineering services; furniture, fixtures and equipment; temporary facilities and relocation expenses; electrical systems and special equipment; utility connection services and fees; and program and construction management firm overhead, fees and reimbursables. The table below details the direct construction and other key budget categories. The City is currently in Phase 1 of the Fire Station Project involving design and concept review, pre-construction and constructability review, and a Guaranteed Maximum Price (“GMP”) development/negotiation. Phase 1 of the Fire Station Project is expected to be completed by the end of 2026. Phase 2 of the Fire Station Project involving the construction of the Fire Station Project is expected to be completed in the Fall of 2028. 603
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10 Key Budget Components/Categories
Phase 1 Pre-Construction Design & Support Services $2,250,000 Phase 2 Construction Materials & Labor 26,300,000
Phase 2 Construction Services (GC/GR), Administrative Oversight, and Project Management for Progressive Design-Build 9,300,000 Temporary Facilities and Relocation During Construction 5,350,000 Environmental, Testing, Utilities, FF&E, and Misc. 2,300,000 Contingency 2,500,000
TOTAL $48,000,000
The modernization of Police facilities (“Police Station Project”) involves is a multi-phase initiative to reimagine, upgrade, and unify the existing Redondo Beach Police Department (RBPD) Headquarters at 401 Diamond Street, Redondo Beach, CA 90277 and Annex Building at 200 N. Pacific Coast Highway, Redondo Beach, CA 90277 into a modern, high-performing and operationally resilient campus that meets current and future law enforcement and public safety needs.

The Police headquarters update includes modernization, replacement and/or expansion of key elements of the existing 19,152 square foot main station, including the first-floor jail, basement-level Communications/Dispatch Center, and Patrol Bureau. This effort is designed to address the City’s identified functional and programmatic needs for its personnel that includes ninety-eight sworn and sixty non-sworn employees across those units mentioned as well as Administration, Property and Evidence, Records, Crime Lab, Animal Services, Code Enforcement, Parking Enforcement, Traffic, Community Services, Victim Services Assistance, and Quality of Life.

The Police Annex Building project involves the renovation and modernization of the existing 11,226 square foot facility to optimize circulation, adjacencies and workflow for non-essential facilities-designated activities and functions. The goal is to balance functionality, safety and aesthetics for the building while enhancing both operational performance and civic presence.

The incorporation of durable, energy-efficient systems, inclusive of backup power generation, and innovative design strategies are intended to reduce long-term maintenance costs and improve building performance under emergency and post-disaster conditions. Additionally, there will be consideration to design flexibility to accommodate future technology integration, evolving staff needs, and the potential expansion or reconfiguration of facilities without significant operational disruption. The estimated direct construction cost is $26,500,000 and key cost components include but are not limited to: construction; geotechnical (e.g., soils reports); deputy testing/inspections; architectural and engineering services; furniture, fixtures and equipment; temporary facilities and relocation expenses; electrical systems and special equipment; utility connection services and fees; and program and construction management firm overhead, fees and reimbursables. The table below shows estimated construction costs and other major cost categories. The City is currently in Phase 1 of the Police Station Project involving design and concept review, pre-construction and constructability review, and a GMP development/negotiation. Phase 1 of the Police Station Project is expected to be completed by the end of 2026.

Phase 2 of the Police Station Project involving the construction of the Police Station Project is expected to be completed in the Fall of 2029.
604
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11 Key Budget Components/Categories
Phase 1 Pre-Construction Design & Support Services $2,400,000 Phase 2 Construction Materials & Labor 26,500,000
Phase 2 Construction Services (GC/GR), Administrative Oversight, and Project Management for Progressive Design-Build 9,750,000 Temporary Facilities and Relocation During Construction 2,000,000 Environmental, Testing, Utilities, FF&E, and Misc. 2,700,000 Contingency 2,000,000
TOTAL $45,350,000

ESTIMATED SOURCES AND USES OF FUNDS
The estimated sources and uses of funds with respect to the Bonds are as follows:

Sources:

Principal Amount
Plus Premium
Total Sources
Uses:

Deposit to Project Account of the Capital Project Fund
Deposit to Interest Account of the Bond Fund(1)
Costs of Issuance(2)
Total Uses
(1)
To be applied to the payment of all interest on the Bonds through ___________ ____. (2) Cost of issuance include Underwriter’s discount, legal fees, printing costs, rating agency fee, municipal advisor fee and other miscellaneous expenses.
605
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12 DEBT SERVICE SCHEDULE
The annualized scheduled debt service payable with respect to the Bonds is as follows (assuming no optional redemption prior to maturity):

Bond Year
Ending
September 1 Principal Interest Total
(1) All of the interest through _________ and a portion of the interest through ___________ will be paid from a portion of the original issue premium deposited in the Interest Account of the Bond Fund. See “ESTIMATED SOURCES AND USES OF FUNDS.”
606
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13 SECURITY FOR THE BONDS
General
Pursuant to the Resolution, for the purpose of paying the principal of and interest on the Bonds, the City Council at the time of fixing the general tax levy will fix, and in the manner provided for such general tax levy, levy and collect annually until the Bonds are paid, or until there is a sum set apart for that purpose sufficient to meet all sums coming due for payment of principal of and interest on the Bonds, a tax sufficient to pay the annual principal of and interest on the Bonds as the same become due. In fixing such tax levy for each fiscal year, the City Council will take into account amounts then on deposit in the Tax Revenue Fund (as defined below under “Flow of Funds Under the Resolution”), if such amounts will be available to pay debt service on the Bonds. Said tax will be in addition to all other taxes levied for City purposes, will be collected at the time and in the same manner as other taxes of the City are collected, and will be used only for the payment of the Bonds and the interest thereon. Under the framework of the constitutional provisions and statutes applicable to California general obligation bonds, including the Bonds, taxes levied to pay debt service on the Bonds may not be used for any other purpose and are not available to support general City operations. See “PROPERTY TAXATION” herein.

Property tax revenues result from the application of the appropriate tax rate to the total assessed value of taxable property in the City. The annual property tax rate for repayment of the Bonds will be based on the total assessed value of taxable property in the City and the scheduled debt service on the Bonds in each year, less any other lawfully available funds applied by the City for repayment of the Bonds. Fluctuations in the annual debt service on the Bonds, the assessed value of taxable property in the City, and the availability of such other funds in any year, may cause the annual property tax rate applicable to the Bonds to fluctuate. In general, if overall assessed values of taxable property in the City were to decline, then the City, in order to generate sufficient tax revenues to pay debt service on the Bonds and other general obligation bonds, would increase tax rates applicable to the Bonds and other general obligations bonds, if any. See “PROPERTY TAXATION” herein.

Pursuant to Section 53515 of the California Government Code, the Bonds will be secured by a statutory lien on all revenues received pursuant to the levy and collection of the ad valorem taxes levied for the Bonds. See “Statutory Lien on Taxes (Senate Bill 222)” below.

Pursuant to the Resolution, the City will pledge the Tax Revenues Fund and the Bond Fund (as defined under “Flow of Funds Under the Resolution”) and all accounts and amounts on deposit therein for the payment of the principal of and interest on the Bonds when and as the same become due. See “Pledge” below.

Under the Resolution, the City is not obligated to pay the debt service from any sources other than as described above. This Official Statement, including Appendix A hereto, provides information on the City’s overall operations and finances with an emphasis on its General Fund and therefore includes information on revenues and other funds that are not pledged to the Bonds under the Resolution and that should not be considered available to pay debt service on the Bonds.

Flow of Funds Under the Resolution
Tax Revenues Fund. The Resolution provides for the establishment of a special fund for the Bonds with the City (the “Tax Revenues Fund”) to be held separate and apart from all other accounts. All taxes collected by the City for the payment of debt service shall be deposited into the Tax Revenues Fund. The Tax Revenues Fund and all accounts therein shall be established, maintained and administered by an Authorized Officer pursuant to Resolution and the Fiscal Agent Agreement. An authorized Officer shall cause amounts on deposit in the Tax Revenues Fund to be transferred to the Fiscal Agent for payment of the principal of, premium, if any, and interest on outstanding Bonds when due. Additional accounts and subaccounts within the Tax Revenues Fund may be established.
607
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14 The City Council shall take such actions annually as are necessary or appropriate to cause the debt service on the Bonds due in any fiscal year to be included in the budget for such fiscal year and to make the necessary appropriations therefor.

Bond Fund. The Resolution provides for the establishment of a separate bond fund with the Fiscal Agent (the “Bond Fund”) to be kept separate and apart from all other funds. The Bond Fund and all accounts therein will be administered by the Fiscal Agent. The Fiscal Agent shall deposit in the Bond Fund from the proceeds of sale of the Bonds, all or a portion of the moneys received on account of original issue premium and interest accrued on the Bonds to the date of payment of the purchase price thereof as directed by the City, and such other moneys, if any, as may be specified in the Fiscal Agent Agreement. So long as any of the Bonds are outstanding, moneys in the Bond Fund shall be used and applied by the Fiscal Agent solely for the purpose of paying the principal of and interest on the Bonds as such principal and interest shall become due and payable, or for purchase of Bonds; provided, however, that when all of the principal of and interest on the Bonds have been paid, any moneys then remaining in such Bond Fund shall be transferred to the City for any legally permitted purpose.

Bond Fund Accounts. The Resolution provides that (i) on or before five (5) Business Days prior to March 1 and September 1 in each year that any of the Bonds are outstanding, an Authorized Officer shall transfer from the Tax Revenues Fund to the Fiscal Agent to set aside in a special account to be designated as the “Interest Account,” which shall be an account within the Bond Fund, an amount which will be equal to the aggregate amount of the interest becoming due and payable on each the Bonds outstanding on the such Interest Payment Date, for the purpose of paying the interest on the Bonds, and (ii) on or before five (5) Business Days prior to September 1 in each year that any of the Bonds are outstanding, an Authorized Officer shall transfer from the Tax Revenues Fund to the Fiscal Agent to set aside in a special account to be designated as the “Principal Account,” which shall be an account within the Bond Fund, an amount which will be equal to the principal on the Bonds outstanding that will become due and payable on such September 1, including those Bonds subject to mandatory redemption on such date pursuant to the provisions of the Fiscal Agent Agreement, for the purpose of paying the principal and mandatory redemption of the Bonds.

Investments. All funds held by the City with respect to the Bonds shall be invested by the City Treasurer pursuant to the City’s policies and guidelines for investment of moneys in the general fund (“General Fund”) of the City, any investment authorized by the Fiscal Agent Agreement or pursuant to Sections 53601 and 53635 of the Government Code, or in investment agreements, including guaranteed investment contracts, float contracts or other investment products (hereinafter collectively referred to as “Investment Agreements”); provided that such agreements comply with the requirements of Section 148 of the Code, and with the requirements of each rating agency then rating the Bonds necessary in order to maintain the then-current rating on the Bonds, if any.

Moneys held in any of the funds and accounts under the Fiscal Agent Agreement by the Fiscal Agent shall be invested at the Written Order of the City Treasurer in investments pursuant to the City’s policies and guidelines for investment of moneys in the General Fund or in Investment Agreements so as to effectively coordinate the investments to the construction program of the City and the debt service payments on the Bonds or to comply with the tax covenants of the City, which shall be deemed at all times to be a part of such funds and accounts. Any loss or investment earnings resulting from such investments shall credited or charged to the fund or account from which such investment was made. The City Treasurer or Finance Director, or both, is authorized to establish accounts with banking institutions to the extent necessary or convenient to provide for the management of any such investments. See APPENDIX C – CITY OF REDONDO BEACH INVESTMENT POLICY.” 608
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15 Pledge
Pursuant to the Resolution, the City will pledge the Tax Revenues Fund and the Bond Fund and all accounts and amounts on deposit therein for the payment of the principal of and interest on Bonds when and as the same become due, including the principal of any term Bonds required to be paid upon the mandatory sinking fund redemption thereof. In addition, the payment of such principal and interest will be secured by the statutory lien of California Government Code Section 53515, to the extent applicable to the amounts of ad valorem taxes on deposit in the Tax Revenues Fund and the Bond Fund. The Bonds will be equally and ratably secured by this pledge, the foregoing statutory lien, and the taxes collected as described above.

Statutory Lien on Taxes (Senate Bill 222)
Pursuant to Section 53515 of the California Government Code, the Bonds will be secured by a statutory lien on all revenues received pursuant to the levy and collection of the ad valorem taxes levied for the Bonds.

Section 53515 of the California Government Code provides that the lien will automatically arise, without the need for any action or authorization by the local agency or its governing board, and will be valid and binding from the time the Bonds are executed and delivered. Section 53515 of the California Government Code further provides that the revenues received pursuant to the levy and collection of the tax will be immediately subject to the lien, and the lien will immediately attach to the revenues and be effective, binding and enforceable against the local agency, its successor, transferees and creditors, and all others asserting rights therein, irrespective of whether those parties have notice of the lien and without the need for physical delivery, recordation, filing or further act. See “CERTAIN RISK FACTORS – Limitation on Remedies; Bankruptcy.”

PROPERTY TAXATION
The information in this section describes ad valorem property taxation, assessed valuation and other measures of the tax base of the City. The Bonds are payable solely from ad valorem taxes levied and collected by the County on taxable property in the City. The City’s General Fund is not a source for repayment of the Bonds.

General
The County levies property taxes on behalf of the City for the City’s general operating purposes as well as for the payment of voter-approved general obligation bonds, including the Bonds. Taxes levied to pay debt service for general obligation bonds may only be applied for that purpose. In general, if overall assessed values of taxable property in the City were to decline then the City, in order to generate sufficient tax revenues to pay debt service on the Bonds, would increase tax rates applicable to the Bonds.

Property Tax Collection Procedures
In California, property which is subject to ad valorem taxes is classified as “secured” or “unsecured.” The “secured roll” is that part of the assessment roll containing state assessed public utilities’ property and property, the taxes on which are a lien on real property sufficient, in the opinion of the county assessor, to secure payment of the taxes. A tax levied on unsecured property does not become a lien against such unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens arising pursuant to State law on such secured property, regardless of the time of the creation of the other liens. Secured and unsecured property are entered separately on the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property.

Property taxes on the secured roll are due in two installments, on November 1 and April 1 of each fiscal year. If unpaid, such taxes become delinquent after December 10 and April 10, respectively, and a 10% penalty 609
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16 attaches to any delinquent payment. In addition, property on the secured roll with respect to which taxes are delinquent is declared tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1-1/2% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to sale by the County.

Property taxes are levied for each fiscal year on taxable real and personal property situated in the taxing jurisdiction as of the preceding January 1. A bill enacted in 1983, SB813 (Statutes of 1983, Chapter 498), however, provided for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Thus, this legislation eliminated delays in the realization of increased property taxes from new assessments. As amended, SB813 provided increased revenue to taxing jurisdictions to the extent that supplemental assessments of new construction or changes of ownership occur subsequent to the January 1 lien date and result in increased assessed value.

Property taxes on the unsecured roll are due on the January 1 lien date and become delinquent, if unpaid on the following August 31. A 10% penalty is also attached to delinquent taxes in respect of property on the unsecured roll, and further, an additional penalty of 1-1/2% per month accrues with respect to such taxes beginning the first day of the third month following the delinquency date.

The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the county recorder’s office, in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes in respect of property on the secured roll is the sale of the property securing the taxes for the amount of taxes which are delinquent.

Certain counties within the State, including the County, have adopted an “Alternative Method of Distribution of Tax Levies and Collections and Tax Sale Proceeds” authorized under the State Revenue and Taxation Code (the “Teeter Plan”). Under the Teeter Plan, counties may opt to remit to local agencies 100% of the tax levy for each year in exchange for counties retaining any subsequent delinquent payments, penalties and interest that would have been due to the local agency. The County has not elected to implement the Teeter Plan. As such, the City’s property tax revenues reflect both reduced property tax revenue from uncollected taxes and increased revenue from the subsequent receipt of delinquent taxes, interest and penalty payments.

Taxation of State-Assessed Utility Property
The State Constitution provides that most classes of property owned or used by regulated utilities are assessed by the State Board of Equalization (“SBE”) and taxed locally. Property valued by the SBE as an operating unit in a primary function of the utility taxpayer is known as “unitary property,” a concept designed to permit assessment of the utility as a going concern rather than assessment of each individual element of real and personal property owned by the utility taxpayer. State-assessed unitary and “operating nonunitary” property (which excludes nonunitary property of regulated railways) is allocated to the counties based on the situs of the various components of the unitary property. Except for unitary property of regulated railways and certain other excepted property, all unitary and operating nonunitary property is taxed at special county-wide rates and tax proceeds are distributed to taxing jurisdictions according to statutory formulae generally based on the distribution of taxes in the prior year.
610
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17 Assessed Valuation
Assessed Valuation History. The following is a table summarizing the historical assessed valuation of the taxable property in the City.

TABLE 1

CITY OF REDONDO BEACH

ASSESSED VALUATION OF TAXABLE PROPERTY
Fiscal Year Secured Unsecured Exemptions
Net Total
Assessed
Valuation
Percent
Change
2017-18 $15,487,047,432 $503,734,023 $(72,464,646) $15,918,316,809 -- 2018-19 16,319,856,189 502,134,122 (72,083,515) 16,749,906,796 5.2% 2019-20 17,103,886,152 521,213,745 (43,871,304) 17,581,228,593 5.0 2020-21 18,140,581,148 560,632,973 (55,071,992) 18,646,142,129 6.1 2021-22 18,740,971,054 600,897,525 (79,188,547) 19,262,680,032 3.3 2022-23 19,957,067,814 657,413,876 (101,991,595) 20,512,490,095 6.5 2023-24 21,052,786,773 670,781,411 (94,847,093) 21,628,721,091 5.4 2024-25 21,983,186,998 961,285,206 (143,960,673) 22,800,511,531 5.4 2025-26 22,985,713,259 774,290,730 (133,396,160) 23,626,607,829 3.6 2026-27 24,463,304,095 344,652,386 (126,978,223) 24,680,978,258 4.5 _______________________________
Source: Los Angeles County Auditor-Controller.

Factors Relating to Increases/Decreases in Assessed Value. As indicated in the previous table, assessed valuations are subject to change in each year. Increases or decreases in assessed valuation result from a variety of factors including but not limited to general economic conditions, supply and demand for real property in the area, government regulations such as zoning, and natural disasters such as earthquakes, fires, floods and droughts.

The City cannot predict or make any representations regarding the effects that natural disasters including but not limited to future earthquakes, fires, floods, droughts and related conditions may have on the value of taxable property within the City, or to what extent the effects said disasters might have had on economic activity in the City or throughout the State.

Property Tax Base Transfer Ballot Measure. On November 3, 2020, State voters approved a constitutional amendment entitled Property Tax Transfers, Exemptions and Revenue for Wildfire Agencies and Counties Amendment (“Proposition 19”), which will: (i) expand special rules that give property tax savings to homeownersthat are overthe age of 55,severely disabled, or whose property has been impacted by a natural disaster or contamination, when they buy a different home; (ii) narrow existing special rules for inherited properties; and (iii) broaden the scope of legal entity ownership changes that trigger reassessment of properties. The City cannot make any assurance asto what effect the implementation of Proposition 19 will have on assessed valuation of real property in the City.
611
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18 Assessed Valuation by Land Use. The following table shows the land use of parcels in the City, according to assessed valuation. As shown, the majority of land in the City is used for residential purposes.

TABLE 2

CITY OF REDONDO BEACH

ASSESSED VALUATION AND PARCELS BY LAND USE
Fiscal Year 2026-27
Non-Residential: Assessed Valuation (1) % of Total Parcels % of Total Commercial/Office $1,725,970,788 7.1% 618 2.8%
Vacant Commercial 45,211,324 0.2 41 0.2
Industrial 1,319,284,541 5.4 52 0.2
Vacant Industrial 7,185,709 0.0 8 0.0
Recreational 4,251,194 0.0 10 0.1
Government/Institutional 38,446,433 0.2 45 0.2
Miscellaneous 508,570,180 2.1 12 0.1
Exempt 0 0.0 244 1.1
Subtotal Non-Residential $3,648,920,169 15.0% 935 4.7%
Residential:

Single Family Residence $9,648,007,376 39.6% 10,394 47.5% Condominium/Townhouse 7,618,223,879 31.3 8,121 37.2
Mobile Home 876,985 0.0 1 0.0
2-4 Residential Units 1,793,521,786 7.4 1,690 7.7
5+ Residential Units/Apartments 1,533,143,095 6.3 495 2.3 Vacant Residential 94,298,064 0.4 131 0.6
Subtotal Residential $20,688,071,185 85.0% 20,839 95.3% TOTAL $24,336,991,354 100.0% 21,862 100.0%
_______________________________________
(1) Local Secured Assessed Valuation, excluding tax-exempt property. Also excludes non-unitary utilities.

Source: Los Angeles County Assessor 2026/27 Combined Tax Rolls. 612
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19 The County has not implemented the Teeter Plan and thus the City’s property tax revenues reflect both reduced property tax revenue from uncollected taxes and increased revenue from the subsequent receipt of delinquent taxes, interest and penalty payments.

The following table represents the City’s tax levy and collections for the last ten fiscal years. Prior to the issuance of the Bonds, the City had no general obligation bond debt.

TABLE 3

CITY OF REDONDO BEACH

PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal Year
Total Tax
Levy
Current
Tax
Collections
Percent of
Levy
Collected
Delinquent
Tax
Collections
Total Tax
Collections
Total
Collections
as Percent
of Current
Levy
2015-16 $32,883,797 $32,440,070 98.65% $405,762 $32,845,833 99.88% 2016-17 34,125,966 33,690,049 98.72 388,499 34,078,548 99.86 2017-18 35,718,202 35,230,091 98.63 383,301 35,613,392 99.71 2018-19 37,267,914 36,719,102 98.53 364,627 37,083,729 99.51 2019-20 39,182,819 38,271,140 97.67 404,113 38,675,253 98.70 2020-21 40,917,175 40,165,051 98.16 602,163 40,767,214 99.63 2021-22 42,386,631 41,678,608 98.33 594,526 42,273,134 99.73 2022-23 45,094,012 44,393,742 98.45 574,364 44,968,106 99.72 2023-24 47,343,461 46,406,198 98.02 890,817 47,297,015 99.90 2024-25 49,584,654 48,541,865 97.90 218,160 48,760,025 98.34 Source: City of Redondo Beach, based on information provided by the County of Los Angeles Auditor/Controller.

Appeals of Assessed Value
Under California law, property owners may apply for a reduction of their property tax assessment by filing a written application, in form prescribed by the SBE, with the appropriate county board of equalization or assessment appeals board. The County Assessor may independently reduce assessed values as well based upon the above factors or reductions in the fair market value of the taxable property. In most cases, an appeal is filed because the applicant believes that present market conditions (such as residential home prices) cause the property to be worth less than its current assessed value. Any reduction in the assessment ultimately granted as a result of such appeal applies to the year for which application is made and during which the written application was filed. A second type of assessment appeal involves a challenge to the base year value of an assessed property. Appeals for reduction in the base year value of an assessment, ifsuccessful, reduce the assessment for the year in which the appeal istaken and prospectively thereafter. The base year is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date.

In addition to the above-described taxpayer appeals, county assessors may independently reduce assessed valuations based on changes in the market value of property, or for other factors such as the complete or partial destruction of taxable property caused by natural or man-made disasters such as earthquakes, floods, drought, fire, or toxic contamination pursuant to relevant provisions of the State Constitution. 613
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20 Whether resulting from taxpayer appeals or county assessor reductions, adjustments to assessed value are subject to yearly reappraisals by the county assessor and may be adjusted back to their original values when real estate market conditions improve. Once property has regained its prior assessed value, adjusted for inflation, it once again is subject to the annual inflationary growth rate factor allowed under Article XIIIA. See “CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS” herein.

No assurance can be given that property tax appeals currently pending or in the future, actions by the County assessor, or other factors in the future will not significantly reduce the assessed valuation of property within the City.

Assembly Bill 102. On June 27, 2017, the Governor signed into law Assembly Bill 102 (“AB 102”). AB 102 restructured the functions of the SBE and created two new separate agencies: (i) the California Department of Tax and Fee Administration, and (ii) the Office of Tax Appeals. Under AB 102, the California Department of Tax and Fee Administration will take over programs previously in the SBE Property Tax Department, such as the Tax Area Services Section, which is responsible for maintaining all property tax-rate area maps and for maintaining special revenue district boundaries. Under AB 102, the SBE continues to perform the duties assigned by the State Constitution related to property taxes, however, beginning January 1, 2018, the SBE only hears appeals related to the programs that it constitutionally administers, and the Office of Tax Appeals will hear tax appeals on all other taxes and fee matters, such as sales and use tax and other special taxes and fees. AB 102 obligates the Office of Tax Appeals to adopt regulations as necessary to carry out its duties, powers, and responsibilities.

Tax Rates
The following table reflects the typical property tax rate per $100 of assessed value in various jurisdictions.

TABLE 4

CITY OF REDONDO BEACH

PROPERTY TAX RATES

DIRECT AND OVERLAPPING GOVERNMENTS
Fiscal Year Ended
June 30
General
City
City Debt
Service*
Redondo
Beach
Unified
School
District
El Camino
Community
College
District
Metropolitan
Water
District Total
2017 1.00000% 0.00000% 0.09079% 0.02294% 0.00350% 1.11724% 2018 1.00000 0.00000 0.08630 0.02120 0.00350 1.11100
2019 1.00000 0.00000 0.08086 0.02223 0.00350 1.10659
2020 1.00000 0.00000 0.08428 0.02155 0.00350 1.10934
2021 1.00000 0.00000 0.08086 0.02362 0.00350 1.11142
2022 1.00000 0.00000 0.08430 0.02264 0.00350 1.09815
2023 1.00000 0.00000 0.07201 0.02299 0.00350 1.10360
2024 1.00000 0.00000 0.07234 0.02116 0.00350 1.09700
2025 1.00000 0.00000 0.06868 0.02101 0.00070 1.09669
2026 1.00000 0.00000 0.09379 0.02179 0.00700 1.12258
________________________________
* Prior to the issuance of the Bonds, the City had no outstanding general obligation debt.

Source: County of Los Angeles Tax Assessor and HdL Coren & Cone. 614
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21 Principal Property Taxpayers
The following table shows the ten largest taxpayers in the City as determined by their gross assessed valuations in 2025-26. A large concentration of ownership in a single individual or entity results in a greater amount of tax collections which are dependent upon that property owner’s ability or willingness to pay property taxes.

TABLE 5

CITY OF REDONDO BEACH

TOP TEN PROPERTY TAXPAYERS
Fiscal Year 2025-26
Property Owner Business Category
Fiscal Year 2025-26
Assessed Valuation % of Total
Northrop Grumman Systems Corporation Aerospace $750,206,538 3.18% South Bay Center SPE LLC Shopping Center 191,051,013 0.81 Rexford Industrial Inc. Industrial 111,595,847 0.47
Ray Pellegrino Trust Residential 86,982,608 0.37
Kobe Group Inc. Apartment Building 86,909,688 0.37
Terreno Santa Fe LLC Industrial, Light Manufacturing 84,827,379 0.36 Extra Space Properties Two LLC Industrial 83,370,474 0.35 Noble House Recp Hotel Venture LLC Hotel 80,694,400 0.34 9300 Wilshire LLC Industrial 72,216,732 0.31
Redondo Distribution Center LLC Warehouse/Distribution 61,202,333 0.26 Total principal property taxpayers
gross assessed value $1,609,057,012 6.81%
Total City Assessed Value $23,626,607,829
________________________________
Source: Los Angeles County Assessor 2025/26 Combined Tax Rolls and the SBE Non Unitary Tax Roll.

Direct and Overlapping Debt
Set forth on the following page is a direct and overlapping debt report (the “Debt Report”) prepared by California Municipal Statistics, Inc. as of August 4, 2026. The Debt Report is included for general information purposes only. The City has not reviewed the Debt Report for completeness or accuracy and makes no representation in connection therewith.

The Debt Report generally includes long-term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of the City in whole or in part. Such long-term obligations generally are not payable from revenues of the City (except as indicated) nor are they necessarily obligations secured by land within the City. In many cases long-term obligations issued by a public agency are payable only from the general fund or other revenues of such public agency.

The table shows the percentage of each overlapping entity’s assessed value located within the boundaries of the City. The table also shows the corresponding portion of the overlapping entity’s existing debt payable from property taxes levied within the City. The total amount of debt for each overlapping entity is not given in the table.

The first column in the table names each public agency which has outstanding debt as of the date of the report and whose territory overlapsthe City in whole or in part. The second column shows the percentage of each 615
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22 overlapping agency’s assessed value located within the boundaries of the City. This percentage, multiplied by the total outstanding debt of each overlapping agency (which is not shown in the table) produces the amount shown in the third column, which is the apportionment of each overlapping agency’s outstanding debt to taxable property in the City.

TABLE 6

CITY OF REDONDO BEACH

STATEMENT OF DIRECT AND OVERLAPPING DEBT
As of August 4, 2026
2025-26 Assessed Valuation: $23,626,607,829
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/26 % Applicable (1) Debt 6/30/26 Metropolitan Water District $16,045,000 0.555% $ 89,050 Los Angeles County Flood Control District 100,000,000 1.104 1,104,000 El Camino Community College District 453,379,729 14.358 65,096,261 Redondo Beach Unified School District 249,261,276 100. 249,261,276 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $315,550,587
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations $3,757,654,203 1.082% $ 40,657,818 Los Angeles County Superintendent of Schools Certificates of Participation 1,824,136 1.082 19,737 City of Redondo Beach General Fund Obligations 219,865,000 100. 219,865,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $260,542,555 TOTAL DIRECT DEBT $219,865,000
TOTAL OVERLAPPING DEBT $356,228,142
COMBINED TOTAL DEBT $576,093,142
(2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and nonbonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2025-26 Assessed Valuation:

Total Direct Debt ($219,865,000).......................................0.93% Total Overlapping Tax and Assessment Debt........................1.34% Combined Total Debt.............................................................2.44% ___________________
Source: California Municipal Statistics.
616
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23 CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND

APPROPRIATIONS
Article XIII A of the State Constitution
Section 1(a) of Article XIII A of the State Constitution (“Article XIII A”) limits the maximum ad valorem tax on real property to 1% of full cash value (as defined in Section 2 of Article XIII A), to be collected by each county and apportioned among the county and other public agencies and funds according to law. Section 1(b) of Article XIII A provides that the 1% limitation does not apply to (i) ad valorem taxes to pay interest or redemption charges on indebtedness approved by the voters prior to July 1, 1978, or (ii) any bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978 by two-thirds of the votes cast by the voters voting on the proposition, or (iii) any bonded indebtedness incurred by a school district, community college district or county office of education for the construction, rehabilitation or replacement of school facilities or the acquisition or lease of real property for school facilities approved after November 8, 2000 by 55% of the voters of the district or county, as appropriate, voting on the proposition. Section 2 of Article XIII A defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 1975-76 tax bill under ‘full cash value’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment” (“Full Cash Value”). The Full Cash Value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or to reflect a reduction in the consumer price index or comparable data for the area under taxing jurisdiction, or may be reduced in the event of declining property value caused by substantial damage, destruction or other factors. Taxpayers in the City may appeal the determination of the Los Angeles County Assessor of the Full Cash Value of their property. At any given point in time, appeals are pending in the City. If the assessed value of a property is reduced as a result of an assessment appeal, the reduction is borne by relevant taxing agencies, including the City.

Legislation enacted by the State Legislature to implement Article XIII A provides that, notwithstanding any other law, local agencies may not levy any ad valorem property tax except to pay debt service on indebtedness approved by the voters as described above.

The voters of the State have approved amendments to Article XIII A. One such amendment generally provides that the purchase or transfer of (i) real property between spouses or (ii) the principal residence and the first $1,000,000 of the Full Cash Value of other real property between parents and children, do not constitute a “purchase” or “change of ownership” triggering reappraisal under Article XIII A. Another amendment permits the State Legislature to allow persons over the age of 55 who meet certain criteria or “severely disabled homeowners” who sell their residence and buy or build another of equal or lesser value within two years in the same county, to transfer the old residence’s assessed value to the new residence. Another amendment permits the State Legislature to allow persons who are either 55 years of age or older, or who are “severely disabled,” to transfer the old residence’s assessed value to their new residence located in either the same or a different county and acquired or newly constructed within two years of the sale of their old residence.

In 1990, the voters approved a further amendment of Article XIII A to permit the State Legislature to exclude from the definition of “new construction” certain additions and improvements, including seismic retrofitting improvements and improvements utilizing earthquake hazard mitigation technologies constructed or installed in existing buildings after November 6, 1990.

Article XIII A has also been amended to provide that there would be no increase in the Full Cash Value base in the event of reconstruction of property damaged or destroyed in a disaster.

Section 4 of Article XIII A provides that cities, counties and special districts cannot, without a two-thirds vote of the qualified electors, impose “special taxes.” 617
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24 Article XIII B of the State Constitution – Gann Limit State and local government agencies in the State are each subject to an annual “appropriations limit” imposed by Article XIII B of the State Constitution (“Article XIII B”). Article XIII B prohibits government agencies and the State from spending “appropriations subject to limitation” in excess of the appropriations limit imposed. The base year for establishing such appropriations limit is fiscal year 1978-79. “Appropriations subject to limitation” are generally authorizations to spend “proceeds of taxes,” which include all, but are not limited to, tax revenues, and the proceeds from (i) regulatory licenses, user charges or other user fees to the extent that such proceeds exceed “the cost reasonably borne by that entity in providing the regulation, product, or service,” (ii) the investment of tax revenues, and (iii) certain subventions received from the State. No limit is imposed on appropriations of funds which are not “proceeds of taxes,” appropriated for debt service on indebtedness existing prior to the passage of Article XIII B or authorized by the voters, or appropriations required to comply with certain mandates of courts or the federal government.

As amended at the June 5, 1990 election by Proposition 111, Article XIII B provides that, in general terms, an agency’s appropriations limit is based on the limit for the prior year adjusted annually to reflect changes in cost of living, population and, when appropriate, transfer of financial responsibility of providing services from one governmental unit to another. Proposition 111 liberalized the aforementioned adjustment factors as compared to the original provisions of Article XIII B. If an agency’s revenues during any two consecutive fiscal years exceed the combined appropriations limits for those two years, the excess must be returned by a revision of tax rates or fee schedules within the two subsequent fiscal years.

Section 7900, et seq. of the State Government Code defines certain terms used in Article XIII B and sets forth the methods for determining the appropriations limits for local jurisdictions. The City is well below its appropriation limit for fiscal year 2024-25. The City’s appropriations limit for fiscal year 2024-25 is $401 million, with approximately $199 million of the City’s appropriations being subject to this limit. The City cannot predict whether, when and how the appropriations limit might impact the City’s finances in the future.

Articles XIII C and XIII D of the State Constitution – Proposition 218 and Proposition 26 On November 5, 1996, the voters of the State approved Proposition 218, the “Right to Vote on Taxes Act.” Proposition 218 added Articles XIII C and XIII D to the State Constitution, which contain a number of provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges.

Article XIII C of the State Constitution (“Article XIII C”) requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City require a majority vote, and taxes for specific purposes, even if deposited in the general fund, require a two-thirds vote. The voter approval requirements of Article XIII C reduce the City’s flexibility to deal with fiscal problems by raising revenue through new or extended or increased taxes and no assurance can be given that the City will be able to raise taxes in the future to meet increased expenditure requirements.

Article XIII D of the State Constitution (“Article XIII D”) contains several new provisions making it generally more difficult for local agencies to levy and maintain “assessments” for municipal services and programs. “Assessment” is defined to mean any levy or charge upon real property for a special benefit conferred upon the real property.

Article XIII D also contains several new provisions affecting a “fee” or “charge,” defined for purposes of Article XIII D to mean “any levy other than an ad valorem tax, a special tax, or an assessment, imposed by a local government upon a parcel or upon a person as an incident of property ownership, including user fees or charges for a property related service.” All new and existing property related fees and charges must conform to requirements prohibiting, among other things, fees and charges which (i) generate revenues exceeding the funds required to 618
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25 provide the property related service, (ii) are used for any purpose other than those for which the fees and charges are imposed, (iii) with respect to any parcel or person, exceed the proportional cost of the service attributable to the parcel, (iv) are for a service not actually used by, or immediately available to, the owner of the property in question, or (v) are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. Further, before any property related fee or charge may be imposed or increased, written notice must be given to the record owner of each parcel of land affected by such fee or charge. The City must then hold a hearing upon the proposed imposition or increase, and if written protests against the proposal are presented by a majority of the owners of the identified parcels, the City may not impose or increase the fee or charge. Moreover, except for fees or charges for sewer, water and refuse collection services (or fees for electrical and gas service, which are not treated as “property related” for purposes of Article XIII D), no property related fee or charge may be imposed or increased without majority approval by the property owners subject to the fee or charge or, at the option of the local agency, two-thirds voter approval by the electorate residing in the affected area. The City has three enterprise funds that are self-supporting from fees and charges (refuse, water and electricity), two of which (water and refuse) have been judicially determined to be property-related for purposes of Article XIII D. As a result, the City has since 2000 followed the notice and public hearing requirements of Section 6 of Article XIII D before imposing or increasing any water or refuse service fees or charges.

However, California courts have held that property-related fees that are used by a city for general fund purposes and that are not compensation to the city for the costs of providing the related service are an impermissible tax under Article XIII D. Under Section 1408 of the City Charter, last approved by the voters in 1993, the City annually transfers up to 6% of the gross revenue of the water enterprise fund to the General Fund.

In addition to the provisions described above, Article XIII C extends the people’s initiative power to the reduction or repeal of local taxes, assessments, and fees and charges imposed prior to its effective date (November 1996). Consequently, the voters of the City could, by future initiative, repeal, reduce or prohibit the future imposition or increase of any local tax, assessment, fee or charge. The California Supreme Court held in BighornDesert View Water Agency v. Verjil, 39 Cal. 4th 205 (2006) that, under Article XIII C local voters by imitative may reduce a public agency’s water rates and delivery charges, as those are property-related fees or charges within the meaning of Article XIII D, and noted that the initiative power described in Article XIII C may extend to a broader category of fees and charges than the property-related fees and charges governed by XIII D (“assessment,” “fee” and “charge,” are not defined in Article XIII C, so it was initially unclear whether the definitions of these terms in Article XIII D (which are generally property-related as described above) would limit the scope of the initiative power set forth in Article XIII C). Accordingly, the Article XIII C initiative power could potentially apply to nonproperty-related revenue sources that currently constitute a substantial portion of general fund revenues. No assurance can be given that the voters of the City will not, in the future, approve initiatives that repeal, reduce or prohibit the future imposition or increase of local taxes, assessments, fees or charges.

On November 2, 2010, voters in the State approved Proposition 26. Proposition 26 amends Article XIII C of the State Constitution to expand the definition of “tax” to include “any levy, charge, or exaction of any kind imposed by a local government” except the following: (1) a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (2) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (3) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (4) a charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property; (5) a fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law; (6) a charge imposed 619
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26 as a condition of property development; and (7) assessments and property-related fees imposed in accordance with the provisions of Article XIII D.

Proposition 26 also provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.

Franchise fees relating to solid waste collection has been the subject of recent litigation. In the case of Robert Zolly et al. v. City of Oakland, two franchises awarded by the City of Oakland for recycling and municipal waste services were subject to challenge under Proposition 26. The City of Oakland argued that the franchise fees fell within the exception of Proposition 26 described under subdivision (d) (“a charge for entrance to or use of local government property, or the purchase, rental, or lease of local government property”). In its ruling issued on August 11, 2022, the California Supreme Court found that the City of Oakland had failed to demonstrate as a factual matter that the right to use city streets for travel (i.e. to haul recyclable and municipal waste), as others use them, is a property right for which a fee can be imposed. The factual question was remanded for consideration in the trial court.

Proposition 1A
The California Constitution and existing statutes give the State Legislature authority over property taxes, sales taxes and the vehicle license fee (the “VLF”). The State Legislature has authority to change tax rates, the items subject to taxation and the distribution of tax revenues among local governments, schools, and community college districts. The State has used this authority for many purposes, including increasing funding for localservices, reducing State costs, reducing taxation, addressing concernsregarding funding for particular local governments, and restructuring local finance.

The California Constitution generally requires the State to reimburse the local governments when the State mandates a new local program or higher level of service. Due to financial difficulties of the State in past years, it did not provide reimbursements for many mandated costs. In other cases, the State has suspended mandates, eliminating both responsibility of the local governments for complying with the mandate and the need for State reimbursements.

On November 3, 2004, the voters of the State approved Proposition 1A, which amended the California Constitution to, among other things, reduce the State Legislature’s authority over local government revenue sources by placing restrictions on the State’s access to local government’s property, sales and VLF revenues.

Proposition 1A generally prohibits the shift of property tax revenues from cities, counties and special districts, except to address a “severe state financial hardship,” which must be approved by a two-thirds vote of both houses of the State Legislature, and only then if, among other things, such amounts were agreed to be repaid with interest within three years. The measure also (i) protects the property tax backfill of Sales Tax revenues diverted to pay the State’s economic recovery bonds, and the reinstatement of the Sales Tax revenues once such bonds are repaid, and (ii) protects local agency VLF revenue (or a comparable amount of backfill payments from the State).

If the State reduces the VLF rate below its current level of 0.65 percent of the vehicle value, Proposition 1A requires the State to provide local governments with equal replacement revenues. Proposition 1A provides two significant exceptions to the above restrictions regarding sales and property taxes. First, the State may shift to schools and community colleges up to 8 percent of local government property tax revenues if the Governor proclaims that the shift is needed due to a severe State financial hardship, the legislature approves the shift with a two-thirds vote of both houses and certain other conditions are met. The State must repay local governments for the diversion of their property tax revenues, with interest, within three years. Second, Proposition 1A allows 620
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27 the State to approve voluntary exchanges of local Sales Tax and property tax revenues among local governments within a county.

Proposition 1A amends the California Constitution to require the State to suspend certain State laws creating mandatesin any year that the State does not fully reimburse local governmentsfor their coststo comply with the mandates. If the State does not provide funding for the activity that has been determined to be mandated, the requirement on cities, counties or special districts to abide by the mandate would be suspended. In addition, Proposition 1A expandsthe definition of what constitutes a mandate to encompass State action that transfers to cities, counties and special districts financial responsibility for a required program for which the State previously had complete or partial financial responsibility. This provision does not apply to mandates relating to schools or community colleges, or to those mandates relating to employee rights.

Proposition 1A restricts the State’s authority to reallocate local tax revenues to address concerns regarding funding for specific local governments or to restructure local government finance. For example, the State could not enact measures that changed how local sales tax revenues are allocated to cities and counties. In addition, measures that reallocated property taxes among local governments in a county would require approval by twothirds of the members of each house of the legislature (rather than a majority vote). As a result, Proposition 1A could result in fewer changes to local government revenues than otherwise would have been the case.

Proposition 22
Proposition 22 (“Proposition 22”) which was approved by California voters in November 2010, prohibits the State, even during a period of severe fiscal hardship, from delaying the distribution of tax revenues for transportation, redevelopment, or local government projects and services and prohibits fuel tax revenues from being loaned for cash-flow or budget balancing purposes to the State General Fund or any other State fund. In addition, Proposition 22 generally eliminates the State’s authority to temporarily shift property taxes from cities, counties, and special districts to schools, temporarily increase a school and community college district’s share of property tax revenues, prohibits the State from borrowing or redirecting redevelopment property tax revenues or requiring increased pass-through payments thereof, and prohibits the State from reallocating vehicle license fee revenues to pay for State-imposed mandates. In addition, Proposition 22 requires a two-thirds vote of each house of the State Legislature and a public hearing process to be conducted in order to change the amount of fuel excise tax revenues shared with cities and counties. Proposition 22 prohibits the State from enacting new laws that require redevelopment agencies to shift funds to schools or other agencies. While Proposition 22 will not change overall State and local government costs or revenues by the express terms thereof, it will cause the State to adopt alternative actions to address its fiscal and policy objectives. Due to the prohibition with respect to the State’s ability to take, reallocate, and borrow money raised by local governments for local purposes, Proposition 22 supersedes certain provisions of Proposition 1A (2004). In addition, Proposition 22 supersedes Proposition 1A of 2006. Accordingly, the State is prohibited from borrowing sales taxes or excise taxes on motor vehicle fuels or changing the allocations of those taxes among local governments except pursuant to specified procedures involving public notices and hearings.

Future Initiatives
Article XIII A, Article XIII B, Article XIII C, Article XIII D and the propositions described above were each adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time, other initiative measures could be adopted, which may place further limitations on the ability of the State, the City or local districts to increase revenues or to increase appropriations which may affect the City’s revenues or its ability to expend its revenues.
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28 RISK FACTORS
The following risk factors associated with investing in Bonds, along with all other information in this Official Statement, should be considered by potential investors in evaluating an investment in the Bonds. The following list is not intended to be comprehensive of all risks of investing in the Bonds and no significance should be associated with the order of presentation of the risk factors The Bonds are payable from and secured by voter-approved property tax levy on all property within the City. The City is not obligated to pay the debt service on the Bonds from any other sources. This official statement, including Appendix A, .

Assessed Value of Taxable Property
The annual property tax rate for payment of the Bonds will be based on the total assessed value of taxable property in the City and the scheduled debt service on the Bonds in each year. Fluctuations in the annual debt service on the Bonds and/or in the assessed value of taxable property in the City may cause the annual property tax rate applicable to the Bonds to fluctuate. In addition, issuance by the City of additional authorized bonds payable from ad valorem property taxes may cause the overall property tax rate to increase. Discussed below are certain factors that may affect the City’s ability to levy and collect sufficient ad valorem taxes to pay scheduled debt service on the Bonds each year.

Total Assessed Value of Taxable Property in the City. The greater the assessed value of taxable property in the City, the lower the tax rate necessary to generate taxes sufficient to pay scheduled debt service on the City’s general obligation bonds.

Natural and economic forces can affect the assessed value of taxable property in the City. Natural and economic forces can affect the assessed value of taxable property within the City. The City is located in a seismically active region, and damage from an earthquake in or near the area could cause extensive damage to taxable property.

Other natural or manmade disasters, such as floods, fire, wildfire, ongoing drought, toxic dumping, erosion, civil unrest or acts of terrorism, could cause a reduction in the assessed value of taxable property within the City. See the captions “ – Natural Hazards,” “ - Climate Issues” and “ – Changing Economic Conditions” below.

Economic and market forces, such as a downturn in the regional economy, could affect assessed values, particularly as these forces might reverberate in the residential housing and commercial property markets as has been experienced in the past. Total assessed values could also be reduced through the reclassification of taxable property to a class exempt from taxation, whether by ownership or use (such as exemptions for property owned by State and local agencies and property used for qualified educational, hospital, charitable or religious purposes).

Reductions in the market values of taxable property may cause property owners to appeal assessed values and may also be associated with an increase in delinquency rates for property taxes. Section 2(b) of Article XIIIA of the State Constitution and Section 51 of the State Revenue and Taxation Code, which were adopted pursuant to Proposition 8 in 1978, require the County assessor to annually enroll either a property’s adjusted base year value (the “Proposition 13 Value”) or its current market value, whichever is less. When the current market value replaces the higher Proposition 13 Value on the assessor’s roll, such lower value is referred to as the “Proposition 8 Value.” Although the annual increase for a Proposition 13 Value is limited to no more than 2%, the same restriction does not apply to a Proposition 8 Value. The Proposition 8 Value of a property is reviewed annually as of January 1; the current market value must be enrolled as long as the Proposition 8 Value falls below the Proposition 13 Value.

Thus, any subsequent increase or decrease in market value is enrolled regardless of any percentage increase or decrease. Only when a current Proposition 8 Value exceeds the Proposition 13 Value attributable to a piece of property (adjusted for inflation) does a county assessor reinstate the Proposition 13 Value. See “PROPERTY 622
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29 TAXATION” for a discussion of the City’s assessed valuation, tax rates and delinquencies and assessment appeals. For a discussion of the City’s other taxes, s ee “APPENDIX A - CITY OF REDONDO BEACH FINANCIAL AND DEMOGRAPHIC INFORMATION - CITY FINANCIAL INFORMATION.” Concentration of Taxable Property Ownership. The more property (by assessed value) owned by any single taxpayer, the more exposure of tax collections to weakness in that taxpayer’s financial situation and ability or willingness to pay property taxes. For Fiscal Year 2025-26, the top ten property taxpayers comprised 6.81% of the total assessed value in the City. See Table 5 herein.

Property Tax Rates. Another factor impacting the ability of taxpayers to pay additional taxes for general obligation bonds is the cumulative rate of tax. The total tax rate per $100 of assessed value (including the basic countywide 1% rate required by statute) is shown for each of the last ten years in Table 5 herein.

Additional Debt. Issuances of additional general obligation bonds can cause the overall property tax rate to increase.

Possible Limitations on Remedies; Bankruptcy
General. Following is a discussion of certain considerations in the event that the City should become a debtor in a bankruptcy proceeding. It is not an exhaustive discussion of the potential application of bankruptcy law to the City. The discussion is based on the United States Bankruptcy Code (the “Bankruptcy Code”) as now in effect and the few relevant judicial decisions to date. The Bankruptcy Code could be amended or construed differently in future judicial decisions (including as a result of possible future decisions in the pending analogous insolvency proceedings for the Commonwealth of Puerto Rico). Any such action could affect the possible application of bankruptcy law to the City.

Bankruptcy courts are courts of equity and as such have broad discretionary powers. If the City were to become the debtor in a proceeding under Chapter 9 of the Bankruptcy Code, bondholders may be prohibited from taking any action to collect any amount from the City (including ad valorem tax revenues) or to enforce any obligation of the City, without the bankruptcy court’s permission, except possibly as described below in the case of pledged “special revenues.” In such a proceeding, as part of its plan of adjustment in bankruptcy, the City may be able to alter the priority, interest rate, principal amount, payment terms, collateral, maturity dates, payment sources, covenants (including tax-related covenants), and other terms or provisions of the Bonds and other transaction documents related to the Bonds, including the obligation of the City to raise taxes if necessary to pay the Bonds, if the bankruptcy court determines that the plan is fair, equitable, not unfairly discriminatory to creditors as a whole, is in the best interests of creditors and otherwise complies with the Bankruptcy Code. There also may be other possible effects of a City bankruptcy proceeding that could result in delays or reductions in payments on the Bonds.

Regardless of any specific adverse determinations in any City bankruptcy proceeding, the fact of a City bankruptcy proceeding could have an adverse effect on the liquidity and market price of the Bonds.

California law allows local governments to file for relief under Chapter 9 of the Bankruptcy Code, but only after attempting to resolve their fiscal problems with creditors, employee groups and other interested parties through a mediation process, unless the government entity declares a fiscal emergency.

Limitations on Plans of Adjustments. Chapter 9 of the Bankruptcy Code does not limit or impair the power of a state to control, by legislation or otherwise, a political subdivision of the state in the exercise of its political or governmental powers, including expenditures for the exercise. In addition, Chapter 9 prevents a bankruptcy court from interfering with the political or governmental powers of a political subdivision debtor, any of its property or revenues or the use or enjoyment of its income producing property, unless the political subdivision debtor confirms a plan of adjustment to that effect or consents to that action. State law provides that ad valorem taxes may be levied to pay the principal of and interest on the Bonds and other voter-approved general obligation bonds of the City in 623
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30 an unlimited amount, and that proceeds of such a levy must be used for the payment of principal of and interest on the City’s general obligation bonds, including the Bonds, and for no other purpose. Under State law, the City’s share of the 1% limited tax imposed by the County is the only ad valorem tax revenue that may be raised and expended to pay liabilities and expenses of the City other than its voter-approved debt, such as its general obligation bonds. If the City should become a debtor in a Chapter 9 proceeding, then it must propose a plan of adjustment of its debts. The plan may not become effective until confirmed by the bankruptcy court. The court may not confirm a plan unless it finds, among other conditions, that the City is not prohibited by law from taking any action necessary to carry out the plan, and that the plan is fair, equitable, does not unfairly discriminate among creditors as a whole, is in the best interests of creditors, and is feasible. If the State law restriction on the levy and expenditure of ad valorem taxes for payment of general obligation bonds is respected in a bankruptcy case, then such ad valorem taxes could be levied by the County only for payment of the Bonds and its other voter-approved general obligation bonds, or securities issued in their stead, and could not be used by the City for any other purpose under its plan.

If the City were a debtor in bankruptcy, it may be prevented from making payments to the Bondholders from funds in its possession. There may be other possible effects of a bankruptcy of the City that could result in delays or reductions in payments on the Bonds, which could have an adverse effect on the liquidity and value of the Bonds.

Statutory Lien. Pursuant to Senate Bill 222 (2015) (“SB 222”), all general obligation bonds issued by local agencies, including the Bonds, are secured by a statutory lien on all revenues received pursuant to the levy and collection of ad valorem taxes levied to pay the bonds. SB 222 provides that the lien will automatically arise, without the need for any action or authorization by the local agency or its governing board, and will be valid and binding from the time the bonds are issued. As a result, the lien on debt service taxes will continue to be valid with respect to post-petition receipts of debt service taxes, should the City become a Chapter 9 debtor. (Unlike most security interests created by agreement, statutory liens on post-petition revenues remain effective under the Bankruptcy Code.) The automatic stay provisions of the Bankruptcy Code would apply, however, thereby preventing bondholders from enforcing their rights to payment from such taxes (with the result that any payments becoming due and owing on the Bonds during the pendency of the Chapter 9 proceeding could be delayed), except possibly as described under “– Special Revenues” below. It is also possible that the bankruptcy court could approve an alternate use of such taxes, if the bondholders are afforded protection that the court determines to be adequate.

Special Revenues. If the ad valorem tax revenues that are pledged to the payment of the Bonds are determined to be “special revenues” within the meaning of the Bankruptcy Code, then the application by the County (or others with possession) of pledged ad valorem tax revenues that are collected after the date of the bankruptcy filing should not be subject to the automatic stay, and bondholders may be able to compel their immediate use to pay debt service, subject to the matters discussed below, including a decision by the United States Court of Appeals for the First Circuit.
“Special revenues” are defined to include, among others, taxes specifically levied to finance one or more projects or systems of the debtor, but excluding receipts from general property, sales, or income taxes levied to finance the general purposes of the debtor. The City has specifically levied and pledged ad valorem taxes for payment of the Bonds. The Bonds were approved at an election held on a proposition that described the project for which the Bonds may be issued. As noted above, State law prohibits the use of the proceeds of the City’s debt service tax for any purpose other than payment of its general obligation bonds, and the bond proceeds may only be used to fund the acquisition or improvement of real property and other capital expenditures included in the proposition, so such tax revenues appear to fit the definition of special revenues. However, there is no binding judicial precedent dealing with the treatment in bankruptcy proceedings of ad valorem tax revenues collected for the payment of general obligation bonds in California, so no assurance can be given that a bankruptcy court would not hold otherwise.
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31 Even if the ad valorem tax revenues that are pledged to the payment of the Bonds are determined to be “special revenues” within the meaning of the Bankruptcy Code, bondholders may not be able to compel that they be used to pay debt service during the pendency of a Chapter 9 proceeding. While the application of special revenues is exempt from the automatic stay by Section 922(d) of the Bankruptcy Code, the United States Court of Appeals for the First Circuit has interpreted that section to exempt only voluntary applications by the debtor and voluntary applications by creditors or others of property in their possession, and not to exempt actions by creditors to compel an application by others, and has held that a bankruptcy court lacks authority to compel the application of special revenues. In re The Financial Oversight and Management Board for Puerto Rico, 919 F.3d 121 (1st Cir. 2019). The U.S. Supreme Court declined to review the First Circuit decision. If the First Circuit’s interpretation is upheld and applied by courts in the Ninth Circuit and the State Superintendent (or State-appointed administrator) were to file a petition to initiate a Chapter 9 proceeding in respect of the City, bondholders would be stayed from seeking to compel the application of pledged ad valorem taxes to pay debt service on the Bonds during the pendency of the proceeding (in either federal or state court), which would leave bondholders with only state court remedies.

Accordingly, even if the ad valorem tax revenues that are pledged to the payment of the Bonds are determined to be “special revenues,” a Chapter 9 proceeding could result in a substantial delay in the payment of debt service, if the City failed to apply pledged ad valorem taxes to pay debt service on the Bonds.

In addition, under the Bankruptcy Code, the exemption of special revenues from the automatic stay permits application of special revenues (other than municipal betterment assessments) “derived” from a project or system only if the application is subject to necessary operating expenses of the project or system. This rule applies regardless of the provisions of transaction documents. If a bankruptcy court were to conclude that the City’s tax collections are “derived” from a City project or system and are not akin to municipal betterment assessments, then the court could determine that such revenues may not be ordered (by itself or a state court) during the pendency of the bankruptcy proceeding to pay debt service to the extent that they are needed to pay necessary operating expenses of the City and may lawfully be applied for that purpose.

Possession of Tax Revenues; Remedies. If the City goes into bankruptcy and has possession of tax revenues (whether collected before or after commencement of the bankruptcy), and if the City does not voluntarily pay such tax revenues to the owners of the Bonds, it is not clear what procedures the owners of the Bonds would have to follow to attempt to obtain possession of such tax revenues, how much time it would take for such procedures to be completed, or whether such procedures would ultimately be successful.

Amounts Invested by City. The City is expected to be in possession of the annual ad valorem property taxes and certain funds to repay the Bonds and may invest these funds in as described in “SECURITY FOR THE BONDS.” Should those investments suffer losses, there may be delays or reductions in payments on the Bonds.

Opinion of Bond Counsel Qualified. The proposed forms of opinions of Bond Counsel, attached hereto as APPENDIX D, are qualified by reference to bankruptcy, insolvency and other laws relating to or affecting creditor’s rights.

Changing Economic Conditions
The general economy of the City is subject to the types of risks generally associated with all suburban real estate markets. Real estate prices may be adversely affected by changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in home improvement costs and by other similar factor. In addition, if there is a significant decline in the general economy of the City, the owners of property within the City may be less able or less willing to make timely payment of property taxes or may petition for reduced assessed valuation causing a delay or interruption in the receipt of property tax revenues by the City. 625
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32 Seismic Factors
The City, like most regions in the State, is located in an area of seismic activity and, therefore, could be subject to potentially destructive earthquakes. According to the City’s General Plan (the “General Plan”), the City lies within a seismically active region. The major faults are related to the San Andreas fault system. The NewportInglewood fault is located 6.5 miles east of the City. Aside from structural damage, earthquake activity can produce other types of adverse effects such as landslides, subsidence/settlement, and liquefaction. For more information, see the “Redondo Beach General Plan” on file with the City Clerk. The occurrence of severe seismic activity in the City could result in substantial damage to property located in the City, and could lead to successful appeals for reduction of assessed values of such property.

Risk of Floods, Fire or Tsunami
As with seismic hazards, the occurrence of a flood, tsunami or fire could result in the substantial interference with the use and occupancy of the Leased Property, which could result in substantial damage to property located in the City, and could lead to successful appeals for reduction of assessed values of such property.

According to the City’s General Plan, predictive modeling for distantly generated tsunamis indicate that approximately five feet above sea level every 100 years and nine feet above sea level every 500 years are possible in the Redondo Beach area. The City adopted a local hazard mitigation plan, dated June 2020, containing goals to increase resiliency within City plans and processes to reduce threats to life and property, maintain basic local government operations and services during and following a hazard event, sustain public outreach and education of hazard risks and proper mitigation activities, improve interdepartmental and interjurisdictional partnerships for greater cooperation, foster a culture of respect and protection for natural systems and the local environment, and enhance post-disaster response capacity through civic leadership of local businesses, community organizations, and City residents.

Recently, Hurricane Marie formed south of Mexico and tracked northwest, sending south-facing beaches and exposed coastal areas of Los Angeles County and Orange County massive wave energy, which caused significant damage to certain coastal properties. The City was not impacted by such recent events.

Loss of Tax Exemption
The Code imposes a number of requirements that must be satisfied for interest on state and local obligations to be excludable from gross income for federal income tax purposes. These requirements include limitations on the use of Bond proceeds, limitations on the investment earnings of Bond proceeds prior to expenditure, a requirement that certain investment earnings on Bond proceeds be paid periodically to the United States and a requirement that issuers file an information return with the Internal Revenue Service (the “IRS”). The City has covenanted in certain of the documents referred to herein that it will comply with such requirements. Failure by the City to comply with the requirements stated in the Code and related regulations, rulings and policies may result in the inclusion of all or a portion of the interest on the Bonds in federal gross income, retroactively to date of original delivery of the Bonds.

The IRS Tax Exempt and Government Entities Division has a division that is devoted to tax-exempt bond compliance and that has been active in examining tax-exempt bond transactions such as the Bonds. There can be no assurance as to the of an examination on the market price of the Bonds in the event that they are selected for examination. The City has not sought to obtain a private letter ruling from the IRS with respect to the Bonds, and the opinion of Bond Counsel is not binding on the IRS. See “TAX MATTERS” herein.

Current and future legislative proposals, if enacted into law, clarifications of the Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, in whole or in part, to federal income taxation, or to be subject to state income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. Legislative proposals arise from time to time, and may currently be under 626
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33 consideration, which would limit the exclusion of gross income of interest on obligations such as the Bonds to some extent for taxpayers who are individuals and whose income is subject to higher marginal income tax rates, or that could significantly reduce the benefit of, or otherwise affect, the exclusion of gross income from interest on obligations like the Bonds. The introduction or enactment of any such legislative proposals, clarification of the Code or court decisions may also affect, perhaps significantly, the market price for, or the marketability of, the Bonds.

Cybersecurity
The City and the County, like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations and finances. As a recipient and provider of personal, private or other electronic sensitive information, the City and the County are potentially subject to multiple cyber threats including, but not limited to, hacking, viruses, malware, ransomware and other attacks on computer and other sensitive digital networks and systems. Entities or individuals may attempt to gain unauthorized access to the City’s or the County’s systems for the purposes of misappropriating assets or information or causing operational disruption or damage. The City has implemented measures to protect against cybersecurity attacks, including perimeter firewalls, malicious domain blocking, anti-virus, spyware, adware, malware software, and provides training to its staff on how to avoid potential cyber threats. However, no assurances can be given that the security and operational control measures of the City will be successful in guarding against any and each cyber threat or breach. The City has cybersecurity insurance.

The City is reliant on the County’s tax collectors for the levy and collection of the ad valorem taxes, and on the Fiscal Agent. No assurance can be given that the City’s, County’s, Fiscal Agent’s, or others efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack would not materially impact the operations or finances of any entity, including with respect to the administration of the Bonds. No assurances can be given that security and operational control measures will ensure against any and all cybersecurity threats and attacks. A cybersecurity incident or breach could damage the City’s information technology systems and cause disruption to City services and operations and/or affect the owners of the Bonds. The cost of any such disruption or remedying damage caused by future attacks could be substantial.

Public Health Emergencies
In recent years, public health authorities have warned of threats posed by outbreaks of disease and other public health threats. On February 11, 2020 the World Health Organization (“WHO”) announced the official name for the outbreak of COVID‐19, an upper respiratory tract illness. COVID-19 spread across the globe and the WHO declared the COVID-19 outbreak to be a pandemic. The spread of COVID-19 had significant adverse health and financial impacts throughout the world, including the City.

With significant decline in COVID-19 case rates and increase in vaccination rates, emergency orders have been lifted. There could be future COVID-19 outbreaks or other public health emergencies that could have material adverse effects on the operations and finances of the City. The City is unable to predict what impact public health emergencies will have on the business operations and financial condition of the City, but the impact could be significant.

Notwithstanding the impacts that COVID-19 may have on the global, national or local economy, or on the City’s revenues, the Bonds are voter-approved general obligations of the City payable solely from the levy and collection of ad valorem property taxes and are not payable from the general fund of the City. The City’s assessed valuation and property-related revenues have continued to grow at a steady rate. See “PROPERTY TAXATION” above. However, there can be no assurances that such growth will continue in the future. 627
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34 Federal Legislation and Policy Risks
Federal policies involving taxation, appropriations, borrowing (including the debt ceiling), trade (including tariffs), immigration, climate change, clean energy and other topics can shift, sometimes dramatically, from one presidential administration or Congress to another. From time to time, such shifts can result in reductions to the level of federal funding for a variety of policy priorities, including transportation, housing, healthcare, social services and other federally funded programs. Recently, several such policy shifts, including delays in grants and other appropriations, have been proposed or promulgated through presidential executive orders and other official and unofficial actions at the federal level. The City cannot predict the outcome of such proposals and other actions, nor the potential impacts of any future such changes in federal policy. However, such changes could in the future have adverse effects on property tax revenue. See also “ - Loss of Tax Exemption” above.

FINANCIAL STATEMENTS
The audited basic financial statements (the “Financial Statements”) of the City for the year ended June 30, 2025, included in APPENDIX B - “CITY OF REDONDO BEACH ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED JUNE 30, 2025,” have been examined by CliftonLarsonAllen LLP, independent auditors (the “Auditor”), to the extent and for the period indicated in its report (the “Report”), which also appears in APPENDIX B. The Financial Statements and the Report should be read in their entirety.

In the Report, the Auditor states that in planning and performing the audit, the Auditor considered the City’s internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing its opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the city’s internal control. The Auditor reported one material weakness and two significant deficiencies in internal control over financial reporting and made recommendations that the City finance department staff continue their efforts in improving the City’s internal controls over financial reporting, which recommendations the City management agreed with and are taking the necessary steps to strength internal controls over financial reporting. The City does not believe any of these findings have any impact on the City’s ability to pay debt service on the Bonds as they become due and payable.

The Financial Statements and Report for the year ended June 30, 2025 and for prior years are on file for public inspection with the City Clerk. The City has not requested nor received the consent of the Auditor to the reproduction of its Report in APPENDIX B - “CITY OF REDONDO BEACH ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED JUNE 30, 2025.” The Auditor has not reviewed or expressed any opinion regarding any portion of this Official Statement other than the Financial Statements as stated in the Report.

TAX MATTERS
In the opinion of Best Best & Krieger LLP, Bond Counsel ("Bond Counsel"), based upon an analysis of existing laws, regulations, rulings, and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”) and is exempt from State of California personal income taxes. Bond Counsel is of the further opinion that interest on the Bonds is not a specific preference item for purposes of the federal individual alternative minimum tax. Bond Counsel observes that interest on the Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Bonds.

To the extent the issue price of any maturity of the Bonds is less than the amount to be paid at maturity of such Bonds (excluding amounts stated to be interest and payable at least annually over the term of such Bonds), the 628
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35 difference constitutes “original issue discount,” the accrual of which, to the extent properly allocable to each beneficial owner thereof, is treated as interest on the Bonds which is excluded from gross income for federal income tax purposes and exempt from State of California personal income taxes. For this purpose, the issue price of a particular maturity of the Bonds is the first price at which a substantial amount of such maturity of the Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers). The original issue discount with respect to any maturity of the Bonds accrues daily over the term to maturity of such Bonds on the basis of a constant interest rate compounded semiannually (with straight-line interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such Bonds to determine taxable gain or loss upon disposition (including sale, redemption, or payment on maturity) of such Bonds. Beneficial owners of the Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of beneficial owners who do not purchase such Bonds in the original offering to the public at the first price at which a substantial amount of such Bonds is sold to the public.

Bonds purchased, whether at original issuance or otherwise, for an amount higher than their principal amount payable at maturity (or, in some cases, at their earlier call date) (“Premium Bonds”) will be treated as having amortizable bond premium. No deduction is allowable for the amortizable bond premium in the case of bonds, like the Premium Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, the amount of tax-exempt interest received, and a beneficial owner’s basis in a Premium Bond, will be reduced by the amount of amortizable bond premium properly allocable to such beneficial owner. Beneficial owners of Premium Bonds should consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances.

The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Bonds. The City has made certain representations and covenanted to comply with certain restrictions, conditions and requirements designed to ensure that interest on the Bonds will not be included in federal gross income. Inaccuracy of these representations or failure to comply with these covenants may result in interest on the Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the Bonds. The opinion of Bond Counsel assumes the accuracy of these representations and compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Bond Counsel’s attention after the date of issuance of the Bonds may adversely affect the value of, or the tax status of interest on, the Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions, events or matters.

Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes, the ownership or disposition of, or the accrual or receipt of amounts treated as interest on, the Bonds may otherwise affect a beneficial owner’s federal, state or local tax liability. The nature and extent of these other tax consequences depends upon the particular tax status of the beneficial owner or the beneficial owner’s other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax consequences.

Current and future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, in whole or in part, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent Beneficial Owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals or clarification of the Code or court decisions may also affect, perhaps significantly, the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding the potential impact of any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.
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36 The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel’s judgment as to the proper treatment of the Bonds for federal income tax purposes. It is not binding on the IRS or the courts. Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the City, or about the effect of future changes in the Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS.

The City has covenanted, however, to comply with the requirements of the Code.

Bond Counsel’s engagement with respect to the Bonds ends with the issuance of the Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the City, or the beneficial owners regarding the tax exempt status of the Bonds in the event of an audit examination by the IRS. Under current procedures, the beneficial owners, would have little, if any, right to participate in the audit examination process. Moreover, because achieving judicial review in connection with an audit examination of tax-exempt bonds is difficult, obtaining an independent review of IRS positions with which the City legitimately disagrees may not be practicable. Any action of the Internal Revenue Service, including but not limited to selection of the Bonds for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues, may affect the market price for, or the marketability of, the Bonds, and may cause the City, or the beneficial owners to incur significant expense.

A copy of the proposed form of opinion of Bond Counsel is attached hereto as Appendix D.

APPROVAL OF LEGALITY
Legal matters incident to the execution and delivery of the Bonds are subject to the approving opinion of Best Best & Krieger LLP, Los Angeles, California, Bond Counsel. A form of such opinion is attached hereto in APPENDIX D - “PROPOSED FORM OF OPINION OF BOND COUNSEL,” and copies of such opinion with respect to the Bonds will be available at the time of delivery of the Bonds. Certain legal matters will be passed upon for the City by the City Attorney and by Best Best & Krieger LLP, Los Angeles, California, as Disclosure Counsel. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement.

Best Best & Krieger LLP has served as Disclosure Counsel to the City and in such capacity has advised the City with respect to the requirements of applicable securities laws and participated with responsible City officials and staff in conferences and meetings where information contained in this Official Statement was reviewed for accuracy and completeness. Disclosure Counsel is not responsible for the accuracy or completeness of the information presented in this Official Statement and has not undertaken to independently verify any of such information. Rather, the City is solely responsible for the accuracy and completeness of the information contained in this Official Statement. No purchaser or holder of the Bonds, or other person or party other than the City, will be entitled to rely on the fact that Best Best & Krieger LLP has acted as Disclosure Counsel to the City.

LITIGATION
There is no pending litigation, notice of which has been received by the City, or, to the knowledge of the City, threatened litigation seeking to restrain or enjoin the issuance or delivery of the Bonds or questioning or affecting the validity of the Bonds or the proceedings or authority under which they are to be issued or the levy, collection and pledge of ad valorem taxes.

A number of unrelated suits and claims are pending against the City and related entities. In the opinion of the City, the results of such legal activities will not have a material adverse effect on the City’s ability to pay debt service on the Bonds.
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37 CONTINUING DISCLOSURE
The City has undertaken for the benefit of holders and beneficial owners of the Bonds to provide certain financial information relating to the City and other data by not later than March 31 after the close of each fiscal year, commencing March 31, 2027 with the report for Fiscal Year 2025-26 (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. The specific nature of the information to be contained in the Annual Report or the notices of enumerated events is set forth in “APPENDIX F – FORM OF CONTINUING DISCLOSURE AGREEMENT.” This undertaking has been made in order to assist the Underwriters in complying with Rule 15c2-12(b)(5) (the “Rule”) promulgated by the Securities and Exchange Commission under the Securities and Exchange Act of 1934, as amended. The City has previously entered into continuing disclosure agreements in connection with its prior bond issuances.

Continuing Disclosure History. Prior to the printing of this Official Statement, an examination was conducted of the continuing disclosure filings by the City during the past five years. The City has had one instance of late filing in the last five years. This occurred in 2026 as a result of the City’s delayed Fiscal Year 2024-25 audit and staffing turnover. Apart from this instance, there were no late or lack of filings within the past five years.

The City believes that their procedures with its dissemination agent are sufficient in the normal due course to assure substantial compliance with its continuing disclosure undertakings in the future. A failure by the City to comply with the provisions of the Continuing Disclosure Agreement is not an event of default under the Fiscal Agent Agreement (although the holders and beneficial owners of the Bonds do have remedies at law and in equity).

However, a failure to comply with the provisions of the Continuing Disclosure Agreement must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds. Therefore, a failure by the City to comply with the provisions of the Continuing Disclosure Agreement may adversely affect the marketability of the Bonds on the secondary market.

RATING
S&P Global Ratings, a division of S&P Global Inc. (“S&P”), has assigned the Bonds a rating of “AA+.” Such rating reflects only the views of such rating organization and an explanation of the significance of such rating may be obtained from the rating agency at S&P Global Ratings, 55 Water Street, New York, NY 10041. The City furnished to the rating agency certain information and materials concerning the Bonds and the City. Generally, a rating agency bases its rating on such information and materials and on investigations, studies and assumptions made by the rating agency. There is no assurance that such rating will continue for any given period of time or that such rating will not be revised downward or withdrawn entirely by the rating agency, if in its judgment circumstances so warrant. Any such downward revision or withdrawal may have an adverse effect on the market price of the Bonds.

UNDERWRITING
The Bonds were awarded to ___________ (the “Underwriter”) pursuant to a competitive bidding held on ________, 2026. The Bonds were awarded to the Underwriter, at an aggregate purchase price of $__________, representing the par amount of the Bonds plus original issue premium of $__________, and less an Underwriter’s discount of $___________. The Underwriter will be obligated to purchase all of the Bonds if any of the Bonds are purchased.

The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts) and others at prices lower than the respective public offering prices stated or derived from information stated on the inside cover page hereof. The initial public offering prices may be changed from time to time by the Underwriter.
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38 MUNICIPAL ADVISOR
Public Resources Advisory Group (the “Municipal Advisor”) has acted as Municipal Advisor to the City in conjunction with the delivery of the Bonds. The Municipal Advisor will receive compensation contingent upon the sale and delivery of the Bonds.

The Municipal Advisor has not audited, authenticated or otherwise independently verified the information set forth in the Official Statement, or any other information related to the City with respect to the accuracy or completeness of disclosure of such information. The Municipal Advisor makes no guaranty, warranty or other representation respecting the accuracy or completeness of this Official Statement or any other matter related to this Official Statement.

EXECUTION AND DELIVERY
The preparation, execution and distribution of this Official Statement have been authorized by the City.

CITY OF REDONDO BEACH
By:

Stephanie Meyer
Finance Director
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APPENDIX A

CITY OF REDONDO BEACH FINANCIAL AND DEMOGRAPHIC INFORMATION 633
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APPENDIX B

CITY OF REDONDO BEACH

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
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APPENDIX C

CITY OF REDONDO BEACH INVESTMENT POLICY
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APPENDIX D

PROPOSED FORM OF OPINION OF BOND COUNSEL
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APPENDIX E

BOOK-ENTRY SYSTEM
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the securities (the “Bonds”). The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC.

One fully-registered certificate will be issued for each maturity of the Bonds, in the aggregate principal amount of such maturity, and will be deposited with DTC.

DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates.

Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation, and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”).

DTC has a S&P Global Ratings’ rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. The information set forth on these websites is not incorporated by reference herein.

Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 637
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Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.

Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting right to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Principal, premium and redemption proceeds, distributions, and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or the Fiscal Agent, on the payment date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participants and not of DTC nor its nominee, the Fiscal Agent or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium and redemption proceeds, distributions, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Fiscal Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the City or the Fiscal Agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates for the Bonds are required to be printed and delivered.

The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, certificates for the Bonds will be printed and delivered to DTC.

The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.

The City cannot and do not give any assurances that DTC will distribute to Participants or that Participants or others will distribute to the Beneficial Owners payments of principal of and interest and premium, if any, on the Bonds paid or any redemption or other notices or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. The City is not responsible or liable for the failure of DTC or any Participant or Indirect Participant to make any payments or give any notice to a Beneficial Owner with respect to the Bonds or any error or delay relating thereto.

Neither the City nor the Fiscal Agent will have any responsibility or obligation to Participants, to Indirect Participants or to any Beneficial Owner with respect to (i) the accuracy of any records maintained by DTC, any Participant, or any Indirect Participant; (ii) the payment by DTC or any Participant or Indirect Participant of any amount with respect to the principal of or premium, if any, or interest on the Bonds; (iii) any notice that is permitted or required to be given to Holders under the Resolution and the Fiscal Agent Agreement; (iv) the selection by DTC, any Participant or any Indirect Participant of any person to receive 638
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payment in the event of a partial redemption of the Bonds; (v) any consent given or other action taken by DTC as Certificate Owner; or (vi) any other procedures or obligations of DTC, Participants or Indirect Participants under the book-entry system.
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APPENDIX F

FORM OF CONTINUING DISCLOSURE AGREEMENT
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APPENDIX A

CITY OF REDONDO BEACH FINANCIAL AND DEMOGRAPHIC INFORMATION The information in this appendix concerning the City’s finances and operations is provided as supplementary information only, and it should not be inferred from the inclusion of this information in this Official Statement that the principal of or interest on the Bonds is payable from the General Fund or any other funds of the City. The Bonds are payable from the proceeds of an unlimited ad valorem tax approved by the voters of the City pursuant to all applicable laws and State Constitutional requirements and required to be levied by the City Council on property within the City in an amount sufficient for the timely payment of principal of and interest on the Bonds. See “SECURITY FOR THE BONDS” and “PROPERTY TAXATION” in the front portion of this Official Statement.

Certain statements included or incorporated by reference in this APPENDIX A constitute “forwardlooking statements.” Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The City does not plan to issue any updates or revisions to those forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based occur.

General
The City was incorporated in 1892 and adopted a charter in 1949. The City is located on the coastal edge of Los Angeles County, approximately 20 miles from downtown Los Angeles and approximately seven miles south of Los Angeles International Airport and spans 6.3 square miles. The City’s population as of January 1, 2026 is 68,460. The City remains a mostly residential, non-industrial community. The City provides a full range of municipal services. These include public safety (police and fire protection); recreation and community services; library; parks; maintenance and improvement of streets and infrastructure; planning and zoning; housing; economic development; transit and general government. The City also operates and maintains a large recreational and commercial harbor, including King Harbor, a 1,428-slip recreational boating harbor; the Redondo Beach Pier and Seaside Lagoon; the Redondo Beach Performing Arts Center; and 1.5 miles of waterfront. Redondo Beach has significant concentrations of employment in the northern portion of the City anchored by Northrop Grumman.

It also has a vibrant hospitality sector near the Harbor/Pier area, an eclectic mix of specialty shops, restaurants and services in the Riviera Village, at the south end of the City, and maintains retail centers at the South Bay Galleria, on the east end of the City. The Harbor/Pier and the Riviera Village made up of specialty shops and services is located at the south end of the City.

City Government
The City is divided into five districts and operates under a Council-Manager form of government. One councilperson is elected from each district and serves four year overlapping terms at elections held every two years. Each councilperson has a limit of two full terms. The Mayor is elected from the City at large, and is also limited to two full terms. Other elected officials are the City Treasurer, City Attorney and the City Clerk, serving terms of four years, but can be re-elected an unlimited number of times. The City Council is responsible for, among other things, passing ordinances, adopting the budget, and appointing the City Manager.

In addition to sitting as the governing board of the City, the Mayor and the City Council act as the Board of Directors for various component units of the City, including the Redondo Beach Housing Authority, the Redondo Beach Public Financing Authority, the Redondo Beach Community Financing Authority, the Parking Authority of the City of Redondo Beach, and the Redevelopment/Successor Agency of the City of Redondo Beach.

The City Manager is responsible for carrying out the policies and ordinances of the City Council and for selecting the non-elected heads of the City’s various departments. 641
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Elected City Officials include the following:

Eugene Solomon, City Treasurer. Eugene Solomon is the elected City Treasurer for the City of Redondo Beach. He was elected on March 7, 2023, and brings over 30 years of finance and risk management experience to the role and a deep commitment to ensuring the fiscal health and transparency of Redondo Beach.

As the owner of a South Bay-based insurance and financial services business, Mr. Solomon has a long history in revenue generation, working with multinational corporations, local families, investments, and budgets.

A proud resident of over 30 years, Mr. Solomon participated in a number of volunteer positions within the city, serving on the General Plan Advisory Committee, Vice-Chair of the Charter Review Committee, and Chairman of the Budget & Finance Committee. While working in these roles, he collaborated with the City Council to modernize sections of the City Charter and refinance our Pension Debt obligations, streamlining operations and saving the city valuable revenue for other civic improvements.

Mr. Solomon worked as a Registered Representative from 1994-2009 after securing Series 6 & 63 designations with FINRA (Financial Industry Regulatory Authority). Mr. Solomon holds a Bachelor’s degree from Florida State University and holds multiple insurance credentials, including LUTCF & SBCS insurance designations and licenses for Property & Casualty, Life, Health, Disability, Long Term Care, and Annuities.

City Management staff include the following:

Mike Witzansky, City Manager. Mr. Witzansky has served as City Manager for the City since November 2021 and as Assistant City Manager for the City since January 2015. Prior to this, he served as the City’s Public Works Director since July 2010, and prior to that served as the City’s Recreation and Community Services Director beginning in January 2006. Before working for the City, Mr. Witzansky served as an Administrative Analyst and Senior Business Manager for the City of Torrance for approximately six years. Mr. Witzansky received a Bachelor of Arts degree in Politics from Pomona College. Mr. Witzansky is a member of the American Public Works Association and is currently the Chairman of the Board of Directors for the Torrance Community Credit Union.

Stephanie Meyer, Finance Director. Ms. Meyer has served as the Finance Director for the City of Redondo Beach since February 2025. She was promoted to the position from her role as Assistant Financial Services Director, the position she held on joining the City in July 2023. Previously, Ms. Meyer worked for the City of Santa Monica’s Finance Department, where she worked on strategic issues including review of City service delivery, pension management strategy, citywide strategic planning, and integrating performance management with the City’s budget. Prior to Santa Monica, Ms. Meyer worked for the US Department of State in the Bureau of Resource Management in budget and planning. Ms. Meyer holds a Bachelor of Arts Degree in Political Science from UCLA and a Master of Public Policy Degree from the Harvard Kennedy School of Government.

CITY FINANCIAL INFORMATION
Budgetary Process; General Fund Budget
The City generally adopts the budget in June of each year. The Fiscal Year 2026-27 budget was adopted on June 16, 2026. The annual budget adopted by the City Council provides for the general operation of the City.

The City Council approves total budgeted appropriations and any amendments to appropriations throughout the fiscal year. Appropriations lapse at fiscal year-end, apart from encumbered funds which roll over to the next fiscal year. The City Council generally reauthorizes appropriations for continuing projects and activities. The City Council has the legal authority to amend the budget of any fund at any time during the fiscal year with a fourfifths vote. The budgetary level of control (the level on which expenditures may not legally exceed appropriations) is at the departmental level. The City Manager is authorized to transfer budgeted amounts within departments within any fund; however, any revisions that alter the total expenditures of any fund or transfer funds between departments must be approved by the City Council.
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Capital Improvement Projects
The City adopts a five-year capital improvement program (CIP). On June 16, 2026, the City approved the Five-Year CIP for 2027-2031, which proposes $130.3 million in projects. The City’s established process for evaluating, reviewing and prioritizing future capital efforts focuses on enhancing the quality of existing public facilities, streets, sewers, and open spaces. The Fiscal Year 2027-31 capital budget coordinates and leverages grant and restricted funds, and includes projects that are a priority to the City Council and provide the greatest public benefit with funding available. It focuses on finishing existing projects while addressing health and safety issues, legislative mandates, and priorities arising out of Mayor and City Council policy direction. It includes 32 previously approved projects and ten new projects, including the Police and Fire Station construction planned to be funded through the Bonds, and $69.1 million in carryover funding for 79 previously approved projects.

The City completed 25 capital improvement projects in Fiscal Year 2025-26, with an additional 25 projects in design, 11 in procurement, and eight in construction, for a total estimated $16.5 million year-end expenditure. The adopted Fiscal Year 2026-27 CIP, which again focuses on rehabilitation of existing street, sewer, park, and public facility infrastructure, contains $69.1 million of carryover funding for 79 previously approved projects and $130.3 million in appropriations for 42 projects, for a total Fiscal Year 2026-27 CIP of approximately $199.5 million and approximately 121 projects. The CIP includes $92.9 million for Police and Fire facilities, which is being funded with proceeds of the Bonds. The project breakout is summarized in the following table, with most of the City’s capital funding designated to, and/or limited to, various street improvement projects, including resurfacing and reconstruction.

Table 1
City of Redondo Beach
Fiscal Year 2026-27 CIP
Project Carryover Funding New Appropriations Total
Public Facilities $11,945,438 $102,297,9341 $114,243,372 Streets 32,283,638 16,510,029 48,793,667
Waterfront 12,043,247 3,200,000 15,243,247
Drainage 5,366,632 3,285,500 8,652,132
Sewer 3,831,050 3,585,000 7,416,050
Parks 2,597,586 1,155,000 3,752,586
General Improvements 1,081,947 270,000 1,351,947
Total $69,149,538 $130,303,463 $199,453,001
General Fund Budget Summary
The following table shows the City’s budget and actual results for General Fund revenues and expenditures for fiscal year 2024-25, and the City’s budget for fiscal years 2025-26 and 2026-27.

1 Includes $92.9 million of improvements to the Police and Fire facilities being funded by the Bonds. 643
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Table 2
City of Redondo Beach
General Fund Budget Summary
Fiscal Years 2024-25 through 2026-27
Fiscal Year
2024-25
Adopted
Budget2
Fiscal Year
2024-25
Audited
Actual3
Fiscal Year
2025-26
Adopted
Budget4
Fiscal Year
2026-27
Adopted
Budget5
Revenues:

Taxes and assessments $79,697,278 $83,657,491 $85,237,861 $86,452,619 Interdepartmental 6 1,832,937 2,420,849 14,737,617 16,153,526 Licenses and permits 2,568,953 3,509,054 2,952,848 2,690,115 Intergovernmental 160,000 565,494 219,367 248,000
Charges for services7 10,607,111 10,245,522 11,763,937 15,419,927 Use of money and property 3,411,107 4,961,657 3,295,401 3,312,851 Fines, forfeitures 1,520,814 1,711,773 1,693,994 2,482,742 Miscellaneous 2,641,941 3,553,135 4,344,062 3,544,135
Total revenues 102,440,141 110,624,975 124,245,087 130,303,915 Expenditures:

Current:

General government 14,809,861 18,010,461 17,952,019 12,227,167 Public safety 57,433,354 59,575,539 70,940,498 76,328,353 Housing & community development 3,610,574 4,433,228 4,511,043 6,624,836 Cultural and leisure services 12,125,075 11,710,649 13,866,900 14,878,130 Public works 8,105,473 6,912,928 8,914,907 9,813,630
Capital Outlay 25,110 271,225 40,000 40,000
Debt Service 31,082 574,946 -- --
Total expenditures 96,140,529 101,488,976 116,225,367 119,912,116 Excess (Deficiency) of Revenues Over
(Under) Expenditures 6,303,428 9,135,999 8,019,720 10,391,799 Other Financing Sources (Uses):

Transfers in 4,265,303 2,061,967 6,403,128 681,229
Transfers out8 (15,880,783) (21,657,252) (18,933,573) (12,805,337) Subscription Financing -- 267,659 -- --
Total Other Financing Sources (Uses): (11,615,480) (19,327,626) (12,530,445) (12,124,108) Net Change in Fund Balance (5,315,868) (10,191,627) (4,510,725) (1,732,309) Fund Balances, Beginning of Year 36,266,892 36,266,892 26,075,265 21,564,540 Fund Balances (Deficits), End of Year $30,951,024 $26,075,265 $21,564,540 $19,832,231 Source: City of Redondo Beach, Finance Department.

2 As provided in the City’s Annual Adopted Budget for fiscal year ended June 30, 2025. 3 As provided in the City’s Annual Comprehensive Financial Report for fiscal year ended June 30, 2025. 4 As provided in the City’s Annual Adopted Budget for fiscal year ended June 30, 2026. This data presentation combines multiple fund budgets for consistency with Annual Comprehensive Financial Report (“ACFR”) fund grouping (General Fund, CalPERS Reserve, Redevelopment Agency-City, Housing Authority-City, and Deposits).
5 As provided in the City’s Annual Adopted Budget for fiscal year ended June 30, 2027. This data presentation combines multiple fund budgets for consistency with ACFR fund grouping (General Fund, CalPERS Reserve, Redevelopment Agency-City, Housing Authority-City, and Deposits). 6 Overhead paid to the General Fund.
7 Consists of fees and charges for services including, but not limited to, parking meter fees, building and engineering fees and library charges. 8 Includes the General Fund portion of annual debt service on its 2021A Lease Revenue Bonds of approximately $11.4 million. 644
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Financial Statements
Set forth in the following pages are the City’s General Fund balance sheets and statements of revenues, expenditures and changes in General Fund balance for the last five fiscal years, based on the City’s audited financial statements. The balance sheets and statements presented in this Official Statement are subject to the various notes attached to the City’s audited financial statements for the respective years.

The City’s Annual Comprehensive Financial Report for fiscal year ended June 30, 2025, which includes the City’s 2024-25 audited financial statements, is set forth in APPENDIX F.

Table 3
City of Redondo Beach General Fund Balance Sheets9
Fiscal Years 2020-21 through 2024-25
Fiscal Year
2020-21
Fiscal Year
2021-22
Fiscal Year
2022-23
Fiscal Year
2023-24
Fiscal Year
2024-25
Assets:

Pooled cash and investments $7,845,179 $15,469,649 $24,931,434 $28,233,374 $16,333,896 Receivables:

Accounts 3,323,627 3,192,800 2,257,139 399,354 813,007
Taxes 5,844,897 6,555,813 5,378,629 5,205,519 5,413,998 Accrued Interest 192,076 210,047 415,855 369,305 331,899 Notes and Loans 18,667 18,605 21,839 15,616 12,600
Leases -- 4,137,426 3,933,367 4,785,455 4,595,338
Prepaid Costs 71,104 52,821 148,160 152,736 180,123
Due from Other Governments 1,744,076 5,136,813 1,622,672 1,649,840 2,042,833 Due from Other Funds 5,838,647 6,809,022 8,103,574 9,586,431 11,624,435 Restricted Assets: Deposits Receivable10 152,963 701,717 1,246,492 1,574,054 2,016,930 Total Assets $25,031,236 $42,284,713 $48,059,161 $51,971,684 $43,365,059 Liabilities:

Accounts Payable 896,748 2,121,704 2,077,857 1,686,301 1,345,273 Accrued Liabilities 3,106,340 3,196,699 3,439,472 4,964,108 6,423,624 Unearned Revenues 21,291 94,673 153,601 340,529 731,996 Deposits Payable 2,575,064 3,206,981 5,103,378 4,000,601 4,228,681 Pollution Remediation Liability 150,000 150,000 150,000 -- -- Due to Other Funds -- -- -- -- 79,474
Total Liabilities 6,749,443 8,770,057 10,924,308 10,991,539 12,809,048 Deferred Inflows of Resources: Deferred
Leases Related Items
2,628 4,145,658 3,946,435 4,713,253 4,480,746
Fund Balances:

Nonspendable 89,771 71,426 169,999 168,352 192,723
Committed11 7,241,252 8,599,208 8,599,208 8,599,208 8,599,208 Assigned 8,908,619 20,421,828 24,228,260 25,968,072 11,919,657 Unassigned 2,039,523 276,536 190,951 1,531,260 5,363,677 Total Fund Balances (Deficits) 18,279,165 29,368,998 33,188,418 36,266,892 26,075,265 Total Liabilities, Deferred Inflows & Fund
Balances
$25,031,236 $42,284,713 $48,059,161 $51,971,684 $43,365,059 Source: City of Redondo Beach Annual Comprehensive Financial Reports for Fiscal Years 2020-21 through 2024-25.

9 General Fund cash and investments have decreased primarily as a result of spending funds for one-time designated purposes, including a transfer to the self-insurance fund, transfer to the capital projects fund, and transfer to the Harbor Tidelands and Uplands funds for capital spending.
10 Up to $3 million in cash is held by a fiscal agent for a reserve fund established in connection with a financing guarantee by the City for the Marine Avenue hotels project. Due to the COVID-19 Pandemic and the impact on travel and hotel stays, the Marine Avenue Hotels developer drew on the reserve fund starting in Fiscal Year 2019-20. See “--Transient Occupancy Tax (TOT)” below. 11 The City’s Statement of Financial Principles requires the City to maintain a committed fund balance for contingencies equivalent to 8.33%, (or one-month), of the General Fund’s current fiscal year’s operating expense budget. 645
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Table 4
City of Redondo Beach
Statements of Revenues, Expenditures and Changes in General Fund Balance Fiscal Years 2020-21 through 2024-25
Fiscal Year
2020-21
Fiscal Year
2021-22
Fiscal Year
2022-23
Fiscal Year
2023-24
Fiscal Year
2024-25
Revenues:

Taxes $67,619,669 $73,699,610 $76,446,608 $80,645,193 $83,657,491 Interdepartmental 9,379,851 10,034,053 8,745,517 12,108 2,420,849 Licenses and Permits 1,641,684 1,731,398 2,607,527 2,386,229 3,509,054 Intergovernmental 275,476 6,136,835 331,107 186,830 565,494 Charges for Services 6,622,881 9,009,337 9,924,671 10,078,596 10,245,522 Use of Money and Property 880,216 (194,345) 2,535,421 5,289,634 4,961,657 Fines and Forfeitures 1,317,110 1,180,975 1,341,895 1,230,559 1,711,773 Miscellaneous 2,941,472 2,871,155 3,917,756 3,189,908 3,553,135 Total revenues 90,678,359 104,469,018 105,850,502 103,019,057 110,624,975 Expenditures:

Current:

General Government 11,164,958 10,771,669 11,433,726 8,907,675 18,010,461 Public Safety 59,932,018 53,879,562 55,465,035 55,215,054 59,575,539 Housing and Community Development 3,722,514 3,232,474 3,425,042 3,272,031 4,433,228 Cultural and Leisure Services 9,046,250 9,294,093 11,054,870 11,080,717 11,710,649 Public Works 6,866,827 6,914,996 7,515,994 6,619,942 6,912,928 Capital Outlay 192,777 2,557,035 469,495 896,456 271,225 Debt Service -- 251,825 389,795 607,373 574,946
Total expenditures 90,925,344 86,901,654 89,753,957 86,599,248 101,488,976 Excess (Deficiency) of Revenues Over
(Under) Expenditures
(246,985) 17,567,364 16,096,545 16,419,809 9,135,999
Other Financing Sources (Uses):

Transfers In 4,604,726 196,128 1,650,733 1,653,179 2,061,967 Transfers Out12 (3,624,716) (8,919,217) (14,343,215) (13,973,838) (21,657,252) Leases Issued -- 2,245,558 -- -- --
Subscription Financing -- -- 415,357 619,252 267,659
Total Other Financing Sources (Uses) 980,010 (6,477,531) (12,277,125) (11,701,407) (19,327,626) Net Change in Fund Balance 733,025 11,089,833 3,819,420 4,718,402 (10,191,627) Fund Balances, Beginning of Year (as restated) $17,546,140 18,279,165 29,368,998 31,548,490 36,266,892 Fund Balances (Deficits), End of Year $18,279,165 $29,368,998 $33,188,418 $36,266,892 $26,075,265 Source: City of Redondo Beach Annual Comprehensive Financial Reports for Fiscal Years 2020-21through 2024-25.

12 Transfers from the General Fund for capital improvement project funding, subsidies of the Street Landscaping and Lighting Fund, and funding capital projects, including for future major facilities reconstruction and open space acquisition vary from year to year in accordance with the capacity of the General Fund in light of competing funding interests. Starting in FY 2022-23, the City budgets and records spending for 2019A (as a pass-through) and 2021A debt service in Transfers Out. 646
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Primary General Fund Revenue Sources
The table below provides the amount of property tax, sales tax, transient occupancy tax, vehicle license fee, and utility users tax revenues, which are the largest General Fund revenues, and the percentage of General Fund revenues that each represents for Fiscal Year 2021-22 through 2024-25.

Table 5
City of Redondo Beach
Largest General Fund Tax Revenues
Fiscal Years 2021-22 through 2024-25
2021-22 2022-23 2023-24 2024-25
Revenue Source Revenues
% of
General
Fund
Revenues Revenues
% of
General
Fund
Revenues Revenues
% of
General
Fund
Revenues Revenues
% of
General
Fund
Revenues
Property Tax 13 $31,890,095 30.5% $34,061,743 32.2% $35,806,499 34.8% $37,895,356 34.3% Sales Tax 11,813,896 11.3 11,036,523 10.4 10,822,480 10.5 11,043,781 10.0 Transient Occupancy Tax 5,419,197 5.2 6,174,326 5.8 9,114,545 8.8 9,122,741 8.2 Vehicle License Fee 8,730,260 8.4 9,286,586 8.8 9,802,781 9.5 10,353,124 9.4 Utility Users Tax 8,024,511 7.7 9,166,031 8.7 8,481,267 8.2 8,840,537 8.0 Source: City of Redondo Beach.

Property Taxes
The City’s property tax is imposed on real property (land and permanently attached improvements, such as buildings) and tangible personal property (moveable property) located within the City. The property tax rate is 1.0% of the assessed value. The assessed value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or reduced in the event of declining property value. The City receives revenues equal to 16.5% of the tax rate from the County of Los Angeles - Auditor/Controller’s Office, or the equivalent of 16.5 cents out of each dollar of property tax collected through property tax bills. See “CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS - Article XIIIA”.

Taxable valuation within the City is established by the Los Angeles County Assessor, except for utility property, which is assessed by the State Board of Equalization. Article XIIIA of the State Constitution provides that, beginning with the 1978-79 Fiscal Year, property taxes in California are limited to one percent of full cash value, except for taxes to pay debt service on indebtedness approved by the voters prior to July 1, 1978. Article XIIIA defines full cash value as the County Assessor’s valuation of real property as shown on the 1975-76 tax bill (“base year”), except in the case of newly-constructed property or property which undergoes a change in ownership. Yearly taxable value increases following the base year are limited to the growth in the consumer price index, but may not exceed two percent annually. For assessment and collection purposes, property is classified either as “secured” or “unsecured,” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing State assessed property and property the taxes on which are a lien on real property sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Other property is assessed on the “unsecured roll.”
Proposition 13 Limitations. Article XIIIA of the State of California Constitution imposes limits on annual adjustments to real property assessed values and to the amount of ad valorem tax that may be levied

13 Excluding homeowners’ exemptions and vehicle license fees which are included in Tax in Fiscal Year2024-25 ACFR. The vehicle license fee in this table includes the Motor Vehicle in Lieu Fee which was included in intergovernmental revenue in the Fiscal Year2024-25 ACFR. 647
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on real property. See “CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS – Article XIIIA of the State Constitution.” ERAF. In response to California’s past severe financial and budgetary distress, the State Legislature adopted legislation impacting the City’s allocation of revenues from property taxes, including, in particular, provisions relating to the Education Revenue Augmentation Fund (“ERAF”). Beginning in Fiscal Year 1992-93 and in various fiscal years thereafter, the State required local governments to remit a portion of their property tax revenues to ERAF. The Fiscal Year 2005-06 state budget required a $13 billion shift from local governments to ERAF. While the State budgets for each of Fiscal Years 2006-07 through 2020-21, as well as the proposed Fiscal Year 2021-22 budget, did not contain provisions for additional ERAF property tax shifts from cities (although the 2008-09, 2009-10, and 2010-11 State Budgets contained provisions for additional ERAF property tax shifts from redevelopment agencies), there can be no assurance that future State Budgets will not require additional ERAF property tax shifts from the City.

Redevelopment Dissolution. The State’s Community Redevelopment Law (codified in Part 1 of Division 24 of the California Health and Safety Code) authorized the redevelopment agency of any city or county to receive an allocation of tax revenues resulting from increases in assessed values of properties within designated redevelopment project areas (the “incremental value”) occurring after the year the project area is formed. In effect, local taxing agencies, such as the City, realize tax revenues only in the assessed value of such property at the time the redevelopment project is created for the duration of such redevelopment project. Although Assembly Bill No. 26 (“AB X1 26”), enacted on June 29, 2011 as Chapter 5 of Statutes of 2011, statutorily dissolved redevelopment agencies as of February 1, 2012, the enforceable obligations of dissolved redevelopment agencies, continue to be paid from property taxes derived from such incremental value until the enforceable obligations are paid in full in accordance with Parts 1.8 (commencing with Section 34161) and 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code of the State, as amended on June 27, 2012 by Assembly Bill No. 1484 (“AB 1484”), enacted as Chapter 26, Statutes of 2012, and as such statutory provisions may further be amended from time to time (as amended, the “Dissolution Act”). Under the Dissolution Act, taxing entities, such as the City, are to receive distributions (in proportion to such taxing entity’s share of property tax revenues in the tax rate area for the applicable fiscal year) of residual amounts of property taxes attributable to incremental value on each June 1 and January 2, commencing June 1, 2012, after payment of (i) tax sharing obligations established previously pursuant to the Community Redevelopment Law, (ii) enforceable obligations of the successor agency to the former redevelopment agency, and (iii) an administrative cost allowance to such successor agency. As enforceable obligations of the former redevelopment agency and its successor agency are paid and retired, residual amounts of property tax revenues attributable to redevelopment project area incremental value are expected to increase over time.

Sales Taxes
The City’s sales tax rate in the City is 9.50%. Redondo Beach receives 1% of taxable sales from the State Department of Tax and Fee Administration. The City’s sales tax revenue has remained fairly flat over the past five years, with declines in Fiscal Years 2022-23 and 2023-24, largely reflecting a leveling out following a strong post-COVID recovery, followed by an increase in Fiscal Year 2024-25. The sales tax revenue trend is similar to the state and region, related to online sales and slower consumer spending following the COVID recovery. Ongoing uncertainty at the South Bay Galleria site, one of the City’s major retail centers, continues to be a negative factor impacting sales tax revenue growth.

The City received $11.04 million in sales tax revenue in Fiscal Year 2024-25, a $0.2 million or 2% increase over the previous Fiscal Year. As stated above, the City has experienced lower than expected revenue growth in the past several fiscal years, due to the impact of inflation and economic uncertainty on purchasing habits, including gas price increases and high borrowing rates. The categories most impacted in 648
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Redondo Beach have been restaurants and hotels, general consumer goods, autos and transportation, and fuel and service stations.

The number of establishments selling merchandise subject to sales tax and the valuation of taxable transactions is presented in the following table.

Table 6
City of Redondo Beach
Taxable Retail Sales
Number of Permits and Valuation of Taxable Transactions (Taxable Transactions in Thousands of Dollars)14
Retail and Food Services15 Total All Outlets
Calendar
Year
Number of
Permits
Taxable
Transactions
Number of
Permits
Taxable
Transactions
2021 1,678 $761,254 2,808 $896,504
2022 1,706 801,887 2,855 937,399
2023 1,615 765,645 2,746 891,867
2024 1,601 745,209 2,737 894,681
2025 1,613 720,459 2,779 896,133
Source: California State Board of Equalization, Taxable Sales in California (Sales & Use Tax).

The following table provides a summary of taxable transactions by category in the City for calendar years 2021 through 2025.

Table 7
City of Redondo Beach
Taxable Transactions
(In Thousands)
2021 2022 2023 2024 2025
Motor Vehicle and Parts $57,923 $63,375 $59,540 $57,706 $54,576 Home Furnishings & Appliances 49,659 38,199 37,429 33,297 29,811 Building Material and Garden 8,168 8,923 9,789 8,676 9,026 Food & Beverage Stores 116,702 114,112 112,659 110,519 119,270 Gasoline Outlets 56,707 68,363 60,918 55,768 47,204
Clothing 67,542 63,831 60,053 56,572 52,248
General Merchandise stores 81,707 85,411 83,008 80,634 72,804 Food Services & Drink 242,707 276,159 268,131 270,548 266,351 Other retail stores 80,138 83,514 74,118 71,489 69,069
Total Retail and Food Services 761,254 801,887 765,645 745,209 720,459 All Other Outlets 135,250 135,512 126,223 149,472 175,673 Total All Outlets $896,504 $937,399 $891,867 $894,681 $896,133 Source: City of Redondo Beach, based on data from California Department of Tax and Fee Administration, Statistical Research and Consulting Division.

14 Latest data available.
15 Starting in 2020 the State Board of Equalization changed the category from Total Retail to Total Retail and Food Services 649
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Largest Sales Taxpayers. The 25 largest payers of sales taxes in the City for Fiscal Year 2024-25 comprised 45.98% of sales tax revenue in the City. The following is a table of the 25 largest sales taxpayers in the City in alphabetical order for Fiscal Year 2024-25:

Table 8
City of Redondo Beach
25 Largest Sales Taxpayers
Fiscal Year 2024-25
Bluewater Redondo Portofino Hotel & Yacht
Club
Cheesecake Factory Quality Sea Food
Del Amo Motorsports Ralphs
Dell Marketing Redondo Mitsubishi
Ferguson Enterprises Rocket
Hewlett Packard Enterprise
Company
Smart & Final
In N Out Burger South Bay Shell
Kohls Target
Living Spaces Furniture TJ Maxx
Macy's Total Wine & More
Nordstrom Rack Ulta Beauty
Petco Vons
Platinum Auto Haus
Source: City of Redondo Beach
Transient Occupancy Tax
The City’s transient occupancy tax (TOT) is imposed on occupants of hotel, motel, inn, tourist home or other lodging facilities, unless such occupancy is for 30 days or longer. The tax is applied to the customer’s lodging bill at a rate of 12%, which was increased 2% in July 2005, and substantially enhanced revenues. Through Fiscal Year 2016-17, generally 10% of the TOT received by the City was contributed to the Redondo Beach Chamber of Commerce and Visitors Bureau to support marketing and tourism in the City. This amount is not netted against revenues, but rather reflected in the City’s expenditures.

In 2012, the City entered into an agreement with a developer to develop hotels located on Marine Avenue adjacent to the 405 freeway: originally the Marriott Residence Inn and the Hilton Garden Inn, with a third hotel (Homewood Suites) added with a 2016 agreement amendment - collectively the Marine Avenue Hotels. To provide adequate security for the construction loans for the Marine Avenue Hotels project, the City agreed to apply a portion of the TOT revenues and real property taxes to be received by the City generated from the Marine Avenue Hotels to create a reserve account. The developer could then access funds in the reserve account by an established formula in the case that it was unable to meet debt service payments on the three hotels. In addition to the City reserve account (Authority-Funded Reserve, or AFR), the Agreement required the developer to create a reserve account (Owner-Funded Reserve, or OFR), which the developer was to use prior to accessing the City’s reserve account. Initial levels were $3.0 million for the operators’ reserve, and $8.5 million for the City’s reserve. Annual replenishment of the AFR is limited to $2.5 million per year. With the addition of the third hotel, these levels decreased to $1.0 million and $3.0 million for the OFR and AFR respectively.
650
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The reserve account became fully funded at $3 million in Fiscal Year 2016-17. At that time, the City recorded a $3.0 million reserve account on its books as a one-time revenue with the fund balance impact classified as restricted. During the COVID-19 pandemic, the hotel operators depleted both reserve funds, and have not recovered performance sufficiently to provide TOT to the City on a consistent basis since 2020. From a pre-pandemic peak of approximately $9 million, TOT has dropped to between $6 and $7 million on a net basis since FY 2022-23, recording $6.9 million in net revenue in FY 2024-25. Note that starting in Fiscal Year 2023-24, the City records gross TOT revenue, with the contribution to the lenderheld AFR shown as an offsetting expense.

The Fiscal Year 2026-27 Adopted Budget TOT estimate represents a slight increase in the TOT the City estimates to retain (although the gross amount represents a decrease) compared to the prior year related to projected tourism improvement from a low Fiscal Year 2025-26, partial-year, partial TOT revenue from the Marine Avenue Hotels, and partial-year revenue from The Eddy, a new hotel that is planned to open during the fiscal year. The Marine Avenue Hotels returning to self-sustaining performance would result in significant additional TOT revenue for the City.

The City plans to place a TOT revenue measure on the March 2027 ballot, proposing a TOT increase from 12% to up to 15%, following Council direction at its February 3, 2026 meeting.

See footnote 10 in Table 3 under “CITY FINANCIAL INFORMATION - Financial Statements.” Vehicle License Fee
Vehicle license fees (VLF) (including property tax in lieu of VLF and motor vehicle in-lieu tax) is imposed by the State on owners of registered vehicles for the privilege of operating a vehicle on public highways. A portion of the tax is disbursed to cities based on the proportion that the population of each city bears to the total population of all cities in the State (a per capita formula). The license fee paid to the State by vehicle owners is 0.65% of the market value of the motor vehicle; however, cities are due 2% of the market value of the motor vehicle. Since there is a discrepancy of 1.35% in what the State collects and what cities are due, the State backfills the additional 1.35% from its General Fund in the form of property tax revenue. Since Fiscal Year 2011-2012, the City has seen increased VLF revenue due to the growth in property tax in lieu of VLF with relatively flat motor vehicle in-lieu tax.

Utility Users Tax
Utility users’ tax (UUT) is imposed on consumers of electric, gas, cable services, water and telephone services. Federal and state governmental agencies and pay telephone users are exempt. Each city sets its UUT rate, and the City’s rate is 4.75%. The City placed a measure on the March 2009 ballot to extend its existing UUT to include additional forms of telecommunications without increasing the tax rate.

This measure was approved by 75% of the voters, helping to support the long-term viability of telecommunications-based UUT revenue. In response to AB 1717 and as approved by the State Board of Equalization, the City began collecting UUT from the sale of prepaid wireless devices in Fiscal Year 2015-

16. There is no sunset on the UUT.

In April 2026, the California Second Appellate District ruled in favor of the City of Santa Barbara in an action to tax streaming services in the same way that UUT applies to cable services. With this ruling, the City intends to consider a tax modernization update on the March 2027 ballot that would enable the City to also apply UUT to streaming services, with the potential to increase UUT revenue.

Reserve Policies
On November 17, 1998, the City Council adopted the Statements of Financial Principles intended to guide the financial management of the City, which requires a minimum reserve for contingencies to be 651
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8.33% (or one month) of the General Fund’s current fiscal year’s operating expense budget. On October 9, 2007, the City amended such policy to require that the reserves or fund balances designated for other post-employment benefits (OPEB) be maintained at appropriate levels as authorized by the City Council.

The City is currently in compliance with such policies.

In September 2017, the City Council created a separate CalPERS Reserve Fund, in which to deposit funds, when available, to be reserved for potential significant increases to the City’s mandated CalPERS contributions.

Investment Portfolio
The City invests all idle cash in various investment instruments, as authorized within the City’s Statement of Investment Policy. The City Treasurer employs a buy and hold philosophy of cash management, ensuring the full return of all investment principal. Since 2013, the City has employed the services of an investment adviser in a non-discretionary capacity. The City’s pooled investment portfolio comprises a diversified mix of local government investment pools (LGIPs), U.S. Treasury securities, Federal Agency securities, and high-quality Corporate Medium Term Notes. The maturity structure of the portfolio emphasizes necessary liquidity to meet the City’s cash flow needs while laddering investments along a zero- to five-year laddered maturity schedule. The City strives to maintain at least 25% of the portfolio in liquid investments that can be converted to cash on short-term notice such as funds in the statemanaged Local Agency Investment Fund (LAIF) or other LGIPs, but liquidity levels fluctuate due to City’s operational and capital improvement program cash flow requirements.

The City maintains a Statement of Investment Policy which has been certified for reporting excellence by the Government Investment Officers Association (GIOA) and the City has established both a written investment policy and investment procedures manual. The Investment Policy is reviewed and approved by both the City Council and the Budget and Finance Commission. The City’s investment portfolio consistently meets the primary objectives set forth in the City’s Investment Policy of safety first, liquidity, and then return, in that order of importance as prescribed by the California Government Code. As of June 30, 2026, the City’s general portfolio was invested as follows:

Amortized Cost Comparison of Investment Portfolio Positions Fiscal Year 2025-26
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Cash in Banks $11,795,033 $10,424,788 $9,289,338 $8,463,482 Investment Type $ % $ % $ % $ %
Money Market $9,330,381 12.8% $7,801,389 9.8% $1,230,883 1.6% $441,115 0.5% CAMP $12,401,737 17.0% $12,530,377 15.7% $59,885 0.1% $60,450 0.1% Local Agency
Investment Fund $108,917 0.2% $15,110,107 18.9% $30,116,452 38.7% $41,398,964 46.3% Treasuries $15,928,128 21.8% $8,948,228 11.2% $12,564,491 16.1% $15,580,697 17.4% Federal Agency
Issues $24,834,595 33.9% $24,874,731 31.2% $24,913,994 32.0% $24,953,694 27.9% Corporate Medium
Term Notes $10,565,811 14.4% $10,583,199 13.3% $9,012,154 11.6% $7,016,220 7.8% Total Investment
Portfolio $73,169,570 100.0% $79,848,030 100.0% $77,897,859 100.0% $89,451,139 100.0% Weighted Average
Maturity (Yrs) 0.75 0.54.0 0.52 0.45
Effective Rate of
Return YTD 3.23% 3.28% 2.90% 3.05%
LAIF
Apportionment Rate 4.34% 4.20% 3.98% 3.92%
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As required by GASB 31, the City recorded the unrealized gain/loss on certain investments to account for the market value at fiscal year-end. As of June 30, 2026 the portfolio market value, $89,295,277, was $155,862 below the portfolio's amortized cost of $89,451,139. The unrealized loss results from structural factors and interest rate movements within the financial marketplace over the past year impacting the market value of the City’s investments.

Long-Term Liabilities
The Redondo Beach Community Financing Authority (CFA) issued refunding revenue bonds in February 2019 (2019A Bonds) totaling $28,015,000, which as of June 30, 2026, were outstanding in the principal amount of $24,085,000. The proceeds of the bonds were used to refund the various leaseback contingencies and finance the purchase of a sublease between the City and Redondo Fisherman’s Cove Company.

The 2019A Bonds bear interest at rates between 4.00% and 5.00% and interest is payable on each May 1 and November 1, commencing November 1, 2019. The 2019A Bonds are payable from base rental payments. Principal is due annually beginning on May 1, 2020, in amounts ranging from $350,000 to $1,585,000. The bonds mature on May 1, 2049. The 2019A Bonds are subject to optional and mandatory early redemption provisions.

In July 2021, CFA issued $226,180,000 lease revenue bonds (2021A Bonds) to fund a portion of the city’s obligation to the California Public Employees’ Retirement system. As of June 30, 2026, the 2021A Bonds were outstanding in the principal amount of $195,780,000.

The 2021A Bonds interest rates are between 0.415% to 3.068% and interest is payable on each May 1, and November 1, commencing November 1, 2023. The 2021A Bonds are payable from base rental payments. The bonds include serial bonds with principal due annually beginning May 1, 2023 until 2026, in amounts ranging from $7,530,000 to $9,485,000. The 2021A Bonds also include term bonds in the amount of $51,785,000 and $58,530,000 due May 1, 2041 and 2049.

On July 1, 2021 the City entered into a 102 month lease as the lessee for the use of 1922 Artesia Blvd. An initial lease liability was recorded in the amount of $2,245,558. As of June 30, 2025 the value of the lease liability $1,242,080. The City is required to make monthly payments of $20,798. The city is using an implicit interest rate of 0.4570%. The City has one extension option of 60 months should it choose to exercise it.

On February 1, 2024 the City entered into a 54 month lease as the lessee for the use of equipment.

An initial lease liability was recorded in the amount of $550,897. As of June 30, 2025 the value of the lease liability is $275,604. The City is required to make annual payments of $140,750. The City is using an implicit interest rate of 1.5132% for this lease. The workstation equipment has a useful life of 54 months as of the contract commencement. The City has the option to purchase the equipment for $385 should it choose to exercise it.

Employee Relations
City employees are represented by seven employee associations. Pursuant to the City’s Municipal Code and the Meyers-Millis-Brown-Act, the City and the employee associations negotiate wages, hours 653
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and conditions of employment. The seven employee associations and their contract expiration dates are as follows:

Employee Association Contract Expiration
Redondo Beach Police Officers (Officers and Sergeants) 31-Dec-26 Redondo Beach Police Officers (Police Management Unit) 31-Dec-26 Redondo Beach Firefighters 30-Jun-28
Redondo Beach Firefighters (Fire Management Unit) 30-Jun-28 Redondo Beach Professional and Supervisory 31-Dec-26
Redondo Beach City Employees 31-Dec-26
California Teamsters Public, Professional & Medical
Employees, Union Local 911
31-Dec-26
Source: City of Redondo Beach.

Pension Plans
Plan Description. The pension plans are agent, multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. A full description of the pension plans regarding number of employees covered, benefit provisions, assumptions (for funding, but not account purposes), and membership information are listed in the Annual Actuarial Valuation Reports (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. The actuarial valuation report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov.

Such website and information is not incorporated by reference in this Official Statement. None of the Authority, City or Underwriters can guarantee the accuracy of such information. Actuarial assessments are forward-looking statements that reflect the judgment of the fiduciaries of the pension plans, and are based upon a variety of assumptions, one or more of which may not materialize or may be changed in the future.

Actuarial assessments will change with the future experience of the pension plans.

The City provides three Tier 1 defined benefit pension plans – two for safety employees (3% at 55 for Fire and 3% at 50 for Police) and one for miscellaneous employees (2% at 55). Beginning July 2012, two additional Tier 2 defined benefit pension plans were provided – one for safety employees (3% at 55 for both Fire and Police) and one for miscellaneous employees (2% at 60). Beginning January 2013, pursuant to the California Public Employee’s Pension Reform Act of 2013 (PEPRA), Tier 3 defined benefit pension plans were added, 2.7% at 57 for safety employees and 2% at 62 for miscellaneous employees. The City makes contributions to the plans based on amounts determined by CalPERS actuaries. Employees of some bargaining groups paid a portion of the employee and/or employer contribution to CalPERS.

Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 654
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Miscellaneous
Tier 1 Tier 2 Tier 3
Hire Date
Prior to
May 1, 2012
On or after May 1,
2012 and before
January 1, 2013
On or after
January 1, 2013
Benefit formula 2% @55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-63 50-63 52-67
Monthly benefits, as a % of eligible compensation 1.426%-2.418% 1.092%-2.418% 1.0%-2.5% Required employee contribution rates 7.00% 7.00% 7.75%
Required employer contribution rates 10.31% 10.31% 10.31% Safety
Tier 1 Tier 2 Tier 3
Hire Date
Prior to
May 1, 2012
On or after May 1,
2012 and before
January 1, 2013
On or after
January 1, 2013
Police - 3% @ 50 Police & Fire Police & Fire
Benefit formula Fire - 3% @ 55 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-55 50-57
Monthly benefits, as a % of eligible compensation 2.4-3% 2.4-3% 2%-2.7% Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates 23.28% 23.28% 23.28% As of the valuation date of July 2025, the following employees were covered by the benefit terms of the Plan:

Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 318 262 Inactive employees entitled to but not yet receiving benefits 211 158 Active employees 302 154
Total 831 574
Contributions. Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the Fiscal Year ended June 30, 2026, the City made $8.3 million in employer contributions to pension plans ($2.72 million for the miscellaneous plan, and $5.56 million for the safety plan).

Net Pension Liability. The net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2025, using an annual actuarial valuation as of June 30, 2024 rolled forward to June 30, 2025 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
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Actuarial Methods and Assumptions Used to Determine Total Pension Liability.

The June 30, 2024 valuation was rolled forward to determine the June 30, 2025 total pension liability based on the following actuarial methods and assumptions:

Miscellaneous Safety
Valuation Date 7/1/2024 7/1/2024
Measurement Date 6/30/2025 6/30/2025
Actuarial Cost Method Entry Age Normal Entry Age Normal Asset Valuation Method Market Value of Assets Market Value of Assets Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Price Inflation 2.3% compounded annually 2.3% compounded annually Salary Increases 16 Varies Varies
Mortality Rate Table 17 Derived using CALPERS’ membership data for all Funds Post Retirement Benefit
Increase 18
Annual standard cost of living adjustment (COLA) is 2%.

Additional detail below.

For more details and additional rationale for the selection of the actuarial assumptions, please refer to the 2021 CalPERS Experience Study and Review of Actuarial Assumptions that can be found on the CalPERS website under: Forms and Publications. Click on “View All” and search for Experience Study.

Discount Rate. The discount rate used to measure the total pension liability as of June 30, 2025, was 6.90%. This is based on the long-term expected rate of return on plan assets and is net of investment expenses but not reduced for administrative expenses. In determining the long-term expected rate of return, CalPERS took into account 20-year market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and combined with risk estimates to project compound (geometric) returns over the long term.

16 Annual increases vary by category, entry age, and duration of service 17 The mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board in November 2021. For purposes of the mortality rates, the rates incorporate generational mortality to capture ongoing mortality improvement. Generational mortality explicitly assumes that members born more recently will live longer than the members born before them thereby capturing the mortality improvement seen in the past and expected continued improvement. For more details, please refer to the 2021 CalPERS Experience Study and Review of Actuarial Assumptions report that can be found on the CalPERS website. 18 The standard cost-of-living adjustment (COLA) is 2%. Annual adjustments are calculated by first determining the lesser of 1) 2% compounded from the end of the year of retirement or 2) actual rate of price inflation. The resulting increase is divided by the total increase provided in prior years. For any given year, the COLA adjustment may be less than 2% (when the rate of price inflation is low), may be greater than the rate of price inflation (when the rate of price inflation is low after several years of high price inflation) or may even be greater than 2% (when price inflation is high after several years of low price inflation). 656
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The table below reflects the expected real rate of return by asset class.

Asset Class
Assumed Asset
Allocation
Long-Term Expected
Real Rate of Return19, 20
Global Equity 37.0% 4.56%
Global Debt Securities 17.0% 5.56%
Inflation Assets 28.0% 2.53%
Private Equity 15.0% 3.03%
Real Assets 8.0% 4.93%
Liquidity -5.0% 1.40%
Changes in the Net Pension Liability. The following table shows the changes in net pension liability recognized over the measurement period for the City Miscellaneous Plan.

Increase (Decrease)
Miscellaneous Plan
Plan Total Pension
Liability
(a)
Plan
Fiduciary Net
Position
(b)
Plan Net
Pension
Liability
(c) = (a) - (b)
Balance at: 6/30/2024 (MD)1 $251,408,672 $247,077,359 $4,331,313 Changes Recognized for the Measurement Period:

Service Cost 3,836,418 3,836,418
Interest on the Total Pension Liability 17,122,190 17,122,190 Changes of Assumptions -
Differences between Expected and Actual
Experience
2,226,861 2,226,861
Net Plan to Plan Resource Movement
Contributions from the Employer 3,262,539 (3,262,539)
Contributions from the Employees 1,772,025 (1,772,025)
Net Investment Income 29,421,410 (29,421,410)
Benefit Payments, including Refunds of Employee
Contributions
(14,812,084) (14,812,084) -
Administrative Expense (176,560) 176,560
Other Miscellaneous Income (Expense) -
Net Changes during 2024-2025 8,373,385 19,467,330 (11,093,945) Balance at: 6/30/2025 (MD)1 $259,782,057 $266,544,689 $(6,762,632) (MD) = Measurement Date

19 An expected annual rate of price inflation of 2.30% was used for this period. 20 Figures are based on the 2024 Asset Liability Management mid-cycle review. 657
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The following table shows the changes in net pension liability recognized over the measurement period for the City Safety Plan.

Increase (Decrease)
Safety Plan Plan Total
Pension
Liability
(a)
Plan Fiduciary
Net
Position
(b)
Plan Net
Pension
Liability
(c) = (a) - (b)
Balance at: 6/30/2024 (MD)21
$452,925,159 $420,950,814 $31,974,345
Changes Recognized for the Measurement Period: -
Service Cost 7,044,057 7,044,057
Interest on the Total Pension Liability 30,809,122 30,809,122 Differences between Expected and Actual
Experience 4,122,985 4,122,985
Changes of Assumptions -
Plan to Plan Resource Movement -
Contributions from the Employer 7,756,006 (7,756,006)
Contributions from the Employees 2,575,384 (2,575,384)
Net Investment Income 50,152,579 (50,152,579)
Benefit Payments, including Refunds of
Employee Contributions (28,122,323) (28,122,323) -
Administrative Expense (300,809) 300,809
Other Miscellaneous Income (Expense) -
Net Changes during 2024-25 13,853,841 32,060,837 (18,206,996) Balance at: 6/30/2025 (MD)(1) $466,779,000 $453,011,651 $13,767,349 (MD) = Measurement Date
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability for the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:

Net Pension Liability Discount Rate - 1% Current Discount Rate Discount Rate + 1% Discount Rate 5.90% 6.90% 7.90%
Miscellaneous Plan 25,336,831 (6,762,632) (33,348,878)
Safety Plan 70,937,124 13,767,349 (33,582,898)
Pension Plan Fiduciary Net Position. The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves. Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

See CalPERS website for additional information.

For the measurement period ending June 30, 2024 (the measurement date) and Fiscal Year ending June 30, 2025, the City incurred pension expense of $4,557,846 and $16,947,891 for the miscellaneous and safety plans, respectively.

21 The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary self-insurance and OPEB expense. As described in the previous section of this note, this may differ from the plan assets reported in the funding actuarial valuation report. 658
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As of June 30, 2025 (the measurement date), the following were the reported deferred outflows of resources and deferred inflows of resources related to all pension plans:

Miscellaneous Safety
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between Expected and Actual
Experience
$1,299,002 -- $6,531,755 --
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments
-- $(6,367,568) -- $(10,843,745)
Total $1,299,002 $(6,367,568) $6,531,755 $(10,843,745)
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Miscellaneous Safety
Measurement Period
ended June 30:

Deferred
Outflows/(Inflows)
of Resources
Deferred
Outflows/(Inflows)
of Resources
2026 $4,281,735 $9,764,570
2027 (3,033,731) (3,875,189)
2028 (3,771,229) (5,854,234)
2029 (2,545,341) (4,347,137)
AB 340, Public Employee Pension Reform Act of 2013 (PEPRA). On September 12, 2012, the California Governor signed AB 340, which implements pension reform in California. Effective January 1, 2013, AB 340: (i) requires public retirement systems and their participating employers to share equally with employees the normal cost rate for such retirement systems; (ii) prohibits employers from paying employerpaid member contributions to such retirement systems for employees hired after January 1, 2013; (iii) establishes a compulsory maximum non-safety benefit formula of 2.5% at age 67; (iv) defines final compensation as the highest average annual pensionable compensation earned during a 36-month period; and (v) caps pensionable income at $110,100 ($132,120 for employees not enrolled in Social Security) subject to Consumer Price Index increases. Other provisions reduce the risk of the City incurring additional unfunded liabilities, including prohibiting retroactive benefits increases, generally prohibiting contribution holidays, and prohibiting purchases of additional non-qualified service credit.

CalPERS Actions. The CalPERS board adopted its current discount rate of 6.80% on November 17, 2021. The rate is 6.80% compounded annually (net of investment and administrative expenses) as of June 30, 2024. The discount rate is based on the long-term expected rate of return on assets using a buildingblock method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. The current assumption, originally based on capital market assumptions developed by the Investment Office in 2021, was reviewed for the June 2025 valuation based on capital market assumptions developed by the Investment Office in 2023.

In 2025, CalPERS completed its Asset Liability Management (ALM) process, an integrated review of CalPERS assets and liabilities to inform decisions designed to achieve a sound and sustainable fund. This formal process runs on a four-year cycle and includes a review of CalPERS’ investment portfolios and retirement plan liabilities. Liability projections are based on demographic and economic 659
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factors and trends, including membership dynamics, future salary and payroll growth, retirement ages, inflation, and life expectancy. The CalPERS board adopted changes to both investment decision-making and assumptions as a result of this review. On the investment side, CalPERS' investment decisionmaking will follow a total portfolio approach (TPA), replacing the prior strategic asset allocation (SAA) model. Under SAA, the CalPERS Board periodically allocated a set amount to each asset class. Under TPA, the focus will be on which investments can best contribute to the performance of the entire CalPERS portfolio, as opposed to achieving individual asset allocation targets. Changes are effective July 1, 2026, with resulting impact to cities’ valuations appearing in the Fiscal Year 2027-28 contributions. CalPERS anticipates assumption changes to result in limited impact to each city’s overall liability, with the actual impact to depend on the city’s individual characteristics. The June 2026 valuation incorporates the impact of these ALM changes.

City Pension Contributions. The total normal cost contribution paid by the City toward pension benefits was $12.6 million in Fiscal Year 2025-26, which includes the employer ($8.3 million) and employer-paid member contributions ($4.3 million). Approximately 84.2%, or $10.6 million, was charged to the General Fund. The budgeted total normal cost contribution for Fiscal Year 2026-27 is approximately $12.6 million and is expected to increase again in Fiscal Year 2027-28. While overall contributions continue to increase along with payroll, the normal cost rate declined slightly for both plans during Fiscal Year 2025- 26 and 2026-27.

CalPERS began to separate the City’s employer contributions into their normal cost and unfunded liability portions in Fiscal Year 2017-18. The normal cost portion continued to be paid as a percentage of payroll, while the unfunded liability portion was paid as a flat dollar amount. In Fiscal Year 2025-26, the percentage-based portion of the rate decreased from 10.31% to 9.98% for miscellaneous employees and from 23.28% to 22.78% for safety employees. The Fiscal Year 2024-25 CalPERS unfunded liability payment was $ 3,139,526 ($489,272 for miscellaneous employees and $2,650,254 for safety employees), with the final amount differing from the budgeted amount and appearing in the City’s valuation based on revised figures from CalPERS at the time of payment. The City paid both the required contribution ($230,855 for miscellaneous employees and $1,092,771 for safety) and additional discretionary payments (ADP) recommended to avoid negative amortization. Rates will decrease from Fiscal Year 2025-26 levels for the 2026-27 fiscal year to 9.72% for miscellaneous employees and to 21.71% for safety employees together with an unfunded liability payment of $4,310,915 ($841,023 for miscellaneous employees and $3,469,892 for safety employees). For Fiscal Year 2027-28, the normal cost rate increases slightly for both miscellaneous, to 9.79%, and safety, to 21.79%, with the unfunded liability payment decreasing to $378,545 for miscellaneous and increasing to $3,959,026 for safety, for a total payment of $4,337,571, a 0.6% increase over the prior year.

The July 2026 valuation, which incorporates the impact of Fiscal Year 2024-25 investment returns of 11.6%, well ahead of the 6.8% target, estimates the miscellaneous plan to be overfunded starting in Fiscal Year 2028-29. In Fiscal Year 2027-28, both plans funded status improves, from 96.3% to 99.4% (miscellaneous) and from 91.0% to 94.7% (safety). The valuation also notes a 47% decrease in the City’s combined unfunded accrued liability, from $51.0 million to $27.0 million. The July 2027 valuation will incorporate Fiscal Year 2025-26 investment returns of 14.8%; the City anticipates that this will further improve its total unfunded liability and decrease unfunded accrued liability payments in the upcoming years.

The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years as reported in the most recent annual valuation report provided by CalPERS, dated July 2026 and setting rates for Fiscal Year 2027-28. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. As of the preparation date of this report, there are no reported returns yet for Fiscal Year 2026-27; preliminary final Fiscal Year returns are 14.8%. Actual contribution rates during this 660
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projection period could be lower than the projection shown below; for example, note that the projections assume a 6.8% return for Fiscal Year 2025-26. The projected normal cost percentages in the projections below reflect that the normal cost will continue to decline over time as new employees are hired into PEPRA or other lower cost benefit tiers.

For the tables below, Normal Cost means the annual cost of service accrual for the upcoming fiscal year for active employees. UAL means Unfunded Accrued Liability. When a plan or pool’s value of assets is less than its Accrued Liability (i.e., the total dollars needed as of the valuation date to fund all benefits earned in the past for current members), the difference is the plan or pool’s Unfunded Accrued Liability (or unfunded liability). If the unfunded liability is positive, the plan or pool will have to pay contributions exceeding the Normal Cost.

MISCELLANEOUS PLAN
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2025-26 and beyond) Fiscal Year 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 Normal Cost % 9.79% 9.60% 9.50% 9.30% 9.20% 9.10%
UAL Payment $378,545 $0 $0 $0 $0 $0

SAFETY PLAN
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2025-26 and beyond) Fiscal Year 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 Normal Cost % 21.79% 21.00% 20.40% 19.80% 19.30% 18.70% UAL Payment $3,959,026 $3,917,000 $3,183,000 $2,398,000 $1,868,000 $1,868,000 Aside from contributing to CalPERS, the City also contributes to Social Security. The Fiscal Year 2024-25 total cost for Social Security and Medicare coverage was $2.8 million, of which $2 million, or

71.4%, is from the General Fund. Safety employees do not participate in Social Security and Medicare, except for those employees hired after 1986, who are required to participate in Medicare.

See Note 12 to the audited financial statements in “APPENDIX F - CITY OF REDONDO BEACH ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025” for additional information regarding the City’s pension plan.

Other Post-Employment Benefits Other Than Pensions
The City also provides post-retirement health care benefits to its employees in accordance with agreements reached with various employee bargaining groups through the California Employers’ Retiree Benefit Trust (CERBT) Fund, which is an agent multiple-employer plan administered by CalPERS. The City pays for retirees’ health care premiums in these plans up to limits established in the agreements with the bargaining units. After age 64, only the City’s minimum health premium contribution under the Public Employees’ Medical and Hospital Care Act is paid. These payments are paid through an Other PostEmployment Benefits (“OPEB”) trust, which was established by the City in Fiscal Year 2009-10 to comply with GASB 45. The OPEB trust allows the City to prefund actuarially derived OPEB costs that are expected to be incurred in future periods. In Fiscal Year 2024-25, the City paid $1,282,258 in premiums and contributed $965,455 to the OPEB trust for a total of $2.2. million in payments to cover current and future 661
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retiree medical benefits; however, future contributions may vary based on future actuarial studies. As of June 30, 2025, the City had 418 active members, 155 participants that are inactive and currently receiving benefits, and 369 members entitled to, but not yet receiving benefits.

As of June 30, 2025, the City had a net OPEB liability of $12,753,999, measured as of June 30, 2024. For the Fiscal Year ended June 30, 2025, the City contributed $2,247,713 to the plan.

Changes in the OPEB Liability.

Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability
(c) = (a) - (b)
Balance at June 30, 2024 (measurement date June 30, 2023) $23,866,032 $10,198,784 $13,667,248 Changes recognized for the measurement period:

Service cost 818,543 - $818,543
Interest 1,492,416 - 1,492,416
Benefit changes - - -
Actual vs. expected experience - - -
Assumption changes - - -
Contributions - employer - 1,970,280 (1,970,280)
Net investment income - 1,264,693 (1,264,693)
Benefit payments (1,611,836) (1,611,836) -
Administrative expenses - (10,765) 10,765
Net changes 699,123 1,612,372 (913,249)
Balance at June 30, 2025 (measurement date June 30, 2024) $24,565,155 $11,811,156 $12,753,999 Risk Management
The City maintains a self-insurance program for workers’ compensation and liability claims. The program accumulates resources in the Self-Insurance Program internal service fund to meet potential losses.

For Fiscal Year 2026-27, the self-insurance retention (SIR) is $750,000 for workers’ compensation and $1,000,000 for liability. Excess coverage up to $50 million for each workers’ compensation claim is provided by a third party private insurer, and excess liability up to $30 million for each occurrence is covered by the PRISM Risk Pool Public Risk Innovation, Solution and Management.

PRISM is a joint powers authority for 95% of California counties as well as 68% of California municipalities where risks and losses are pooled together to keep annual premiums low. Both the workers’ compensation and liability claims programs are managed by a third-party claims administrator under the direction of the Risk Management Division of the Human Resources Department.

The amounts included in the Self-Insurance Program internal service fund are significant, partly due to requirements of Government Accounting Standards Board (GASB) Statement No.10. In complying with GASB 10, the City must record as a liability and expenditure not only actual risk/loss experienced in the areas of workers’ compensation and liability, but also claims incurred but not reported (IBNR). IBNR claims include exposure for losses of which a city is not yet aware, as well as any statistically probable increase in costs for accidents that are already known to the City. The appropriate amount to include on the financial statements for IBNR claims is typically developed by an actuary. The City recorded the following:

Workers’ Compensation Claims. For Fiscal Year ending June 30, 2025, claims payable totaled $15.9 million representing an increase of $1.2 million, or 8.2%, from the prior period. This increase is attributable to higher estimated reserves and the settlement of claims in previous years. For Fiscal Year ending June 30, 2026, claims payable totaled $15.9 million representing an increase of $100,000, or .62%, 662
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from the prior period. This slight increase is attributable to lower estimated reserves and the settlement of claims in previous years.

Liability Claims. For Fiscal Year ending June 30, 2025, claims payable totaled $8.7 million representing a decrease of $1.0 million, or 10.2%, from the prior period. This decrease is attributable to lower estimated reserves and the settlement of claims in previous years. For Fiscal Year ending June 30, 2026, claims payable totaled $11.4 million representing an increase of $2.7 million, or 31.43%, from the prior period. This increase is attributable to higher estimated reserves and the settlement of claims in previous years.

Unemployment Insurance. The City participates in a direct-cost reimbursement method for unemployment insurance. This program is administered by the State Employment Development Department (EDD) to provide salary continuance for terminated employees. For Fiscal Year 2024-2025, reimbursement to EDD was $23,056. For Fiscal Year 2025-26, reimbursement to EDD was $38,832.

CITY DEMOGRAPHIC INFORMATION
Population
The following table shows the population of the City and the County for the last ten years.

POPULATION STATISTICS
Year (as of January 1) City of Redondo Beach Los Angeles County 2017 68,907 10,231,271
2018 68,677 10,283,729
2019 68,473 10,184,378
2020 66,900 10,135,614
2021 66,484 10,044,458
2022 68,972 9,936,690
2023 68,407 9,848,406
2024 68,319 9,808,667
2025 68,528 9,876,811
2026 68,460 9,837,286
Source: U.S. Department of the Census and the California State Department of Finance. 663
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Major Employers
The following table sets forth the top ten major employers located in the City for Fiscal Year 2024-

25. CITY OF REDONDO BEACH
MAJOR EMPLOYERS (Fiscal Year 2024-25)
Name Type of Business or Entity Employees22
% of Total City
Employment23
Northrop Grumman Corporation Aerospace defense/technology 6,845 18.78% Redondo Beach Unified School District Education 954 2.62 City of Redondo Beach City government 458 1.26
The Cheesecake Factory Restaurant 261 0.72
Target Store Retail 217 0.60
Impulse Space Aerospace defense/technology 205 0.56
Macy’s Retail 171 0.47
Frontier Telecommunications 164 0.45
United States Post Office Postal Service 152 0.42
The Kensington Redondo Beach Assisted living facility 130 0.36 9,557 26.22%

22 City of Redondo Beach, Annual Comprehensive Financial Report, based on business licensing data from the City of Redondo Beach. 23 Based on 36,446 total City employees. Data from U.S. Department of the Census, American Community Survey (ACS) 5-year estimate. 664
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Construction Activity
The following table presents building permit valuations for the City from calendar year 2021 through 2025.

CITY OF REDONDO BEACH
Building Permit Valuation and New Housing Units
2021 2022 2023 2024 2025
Residential
Single Family $14,624,317 $26,193,994 $27,862,396 $14,456,880 $10,024,739 Multi-Family 24,866,851 78,272,398 18,391,441 20,771,360 41,613,950 Alteration/Additions 24,438,257 28,987,343 25,578,639 30,355,291 35,836,138 Total $63,929,425 $133,453,735 $71,832,476 $65,583,531 $87,474,827 Non-Residential
New Commercial $3,655,467 $30,918,970 $3,527,107 $610,000 $0 Other24 309,460 308,662 188,835 289,293 651,330
Alteration/Additions 15,841,685 80,680,847 16,770,044 29,098,006 32,877,239 Total $19,806,612 $111,908,479 $20,485,986 $29,997,299 $33,528,569 Total All Industry 25 $83,736,037 $245,362,214 $92,318,462 $95,580,830 $121,003,396 New Housing Units
Single Family Units 68 73 79 85 47
Multi-Family Units 85 170 76 29 38
Total 153 243 155 114 85
Source: City of Redondo Beach

24 Includes churches and religious building, hospitals and institutional buildings, schools and educational buildings, residential garages, public works and utilities buildings and non-residential alterations and additions. 25 May not add up due to rounding.
665
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Employment and Industry
Los Angeles-Long Beach-Glendale Metropolitan Division civilian labor force and employment figures for calendar years 2022 through 2026 are shown in the following table.

Los Angeles-Long Beach-Glendale Metropolitan Division
Industry Employment & Labor Force - by Annual Average26 Category 2022 2023 2024 2025 2026(1)
Civilian Labor Force 5,036,800 5,064,800 5,106,400 5,098,800 4,951,100 Civilian Employment 4,786,000 4,808,300 4,812,400 4,810,600 4,689,000 Civilian Unemployment 250,800 256,500 294,000 288,200 262,100 Civilian Unemployment Rate 5.0% 5.1% 5.8% 5.7% 5.3%
Total Farm 4,800 4,700 4,700 4,200 4,100
Total Nonfarm 4,532,100 4,548,500 4,597,800 4,592,700 4,614,200 Total Private 3,962,100 3,965,400 3,996,100 3,989,500 4,006,400 Goods Producing 474,700 471,300 465,900 451,400 445,400 Mining, Logging and Construction 153,000 152,900 153,300 148,200 148,000 Mining and Logging 1,700 1,700 1,700 1,700 1,800
Construction 151,300 151,200 151,600 146,500 146,200
Manufacturing 321,700 318,400 312,600 303,300 297,400
Durable Goods 189,500 190,200 187,800 181,800 182,200
Nondurable Goods 132,200 128,300 124,900 121,500 115,200 Service Providing 4,057,400 4,077,200 4,131,900 4,141,200 4,168,800 Private Service Providing 3,487,400 3,494,100 3,530,300 3,538,100 3,561,000 Trade, Transportation & Utilities 833,500 822,800 812,000 799,300 786,400 Information 234,900 193,100 189,600 177,000 174,100
Financial Activities 215,700 210,500 207,700 203,400 200,600 Professional & Business Services 667,400 657,200 657,400 660,200 652,600 Educational & Health Services 870,600 919,000 967,000 1,007,100 1,034,500 Leisure & Hospitality 512,400 534,100 537,500 533,100 550,500 Other Services 153,000 157,400 159,000 158,000 162,300
Government 570,000 583,100 601,700 603,200 607,800
Total, All Industries 4,536,900 4,553,200 4,602,500 4,596,900 4,618,300 Note: The “Total, All Industries” data is not directly comparable to the employment data found herein.

Source: State of California, Employment Development Department, Labor Market Information Division, Los Angeles-Long Beach-Glendale Metropolitan Division (Los Angeles County), Industry Employment & Labor Force - by Annual Average, March 2025 Benchmark.

26 Data as of June 1, 2026.
666
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The following table summarizes the labor force, employment and unemployment figures for the years 2021 through 2026 for the City, the County, the State and the nation as a whole.

CITY OF REDONDO BEACH, LOS ANGELES COUNTY,

STATE OF CALIFORNIA AND UNITED STATES
Average Annual Civilian Labor Force, Employment and Unemployment Year and Area Labor Force Employment 27 Unemployment 28 Unemployment
Rate (%) 29
2021
City of Redondo Beach 38,100 35,500 2,700 7.0
Los Angeles County 5,019,900 4,569,800 450,100 9.0
California 19,013,800 17,619,300 1,394,500 7.3
United States 161,204,000 152,581,000 8,623,000 5.3
2022
City of Redondo Beach 38,500 36,800 1,600 4.2
Los Angeles County 5,036,800 4,786,000 250,800 5.0
California 19,267,400 18,441,400 826,100 4.3
United States 164,287,000 158,291,000 5,996,000 3.6
2023
City of Redondo Beach 38,500 36,800 1,700 4.5
Los Angeles County 5,064,700 4,808,300 256,500 5.1
California 19,514,600 18,593,600 921,000 4.7
United States 167,116,000 161,037,000 6,080,000 3.6
2024
City of Redondo Beach 38,600 36,600 2,000 5.3
Los Angeles County 5,106,400 4,812,400 294,000 5.8
California 19,692,800 18,650,700 1,042,200 5.3
United States 168,106,000 161,346,000 6,761,000 4.0
2025 30
City of Redondo Beach 38,527 36,572 1,945 5.0
Los Angeles County 5,098,800 4,810,600 288,200 5.6
California 19,823,800 18,738,500 1,085,300 5.5
United States 170,807,000 163,493,000 7,314,000 4.3
Source: California Employment Development Department and U.S. Department of Labor, Bureau of Labor Statistics, March 2025 Benchmark.

27 Includes persons involved in labor-management trade disputes. 28 Includes all persons without jobs who are actively seeking work. 29 The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table. 30 Annual estimates for 2025 are 11-month averages that exclude October. (Data for October 2025 were not collected due to the federal government shutdown.) As a result, 2025 annual estimates are not strictly comparable with annual averages for other years. 667
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[Note: Publication governed by Gov. Code §53692: In addition to any other requirement imposed by law, at least 15 days prior to the sale of any public securities that exceed one million dollars ($1,000,000) but do not exceed ten million dollars ($10,000,000) at a public sale and at least five days prior to the sale of any public securities that exceed ten million dollars ($10,000,000) at a public sale, an issuer shall publish notice of the intention to sell the securities in a financial publication generally circulated throughout the state or reasonably expected to be disseminated among prospective bidders for the securities. The notice shall include the date, time, and place of the intended sale and the amount of the securities to be sold.]

NOTICE OF INTENTION TO SELL BONDS
NOT TO EXCEED $93,350,000*

CITY OF REDONDO BEACH, CALIFORNIA

GENERAL OBLIGATION BONDS
(MEASURE FP PUBLIC SAFETY IMPROVEMENTS)
SERIES 2026
NOTICE IS HEREBY GIVEN by the City of Redondo Beach (the “City”), that bids will be received by a representative of the City for the purchase of all of the above-referenced bonds (the “Bonds”).

Bids will be received in electronic form until
[9:00] a.m. Pacific Time on October 27, 2026
through the S&P Global BiDCOMP™/PARITY® Competitive Bidding System (“Parity”).

The City reserves the right to postpone or change the sale date up to 1:00 p.m. on the preceding day by publishing notice thereof on the Parity website. Further information, including copies of the preliminary Official Statement and Official Notice of Sale may be obtained from the City’s municipal advisor, Public Resources Advisory Group in Los Angeles, California; telephone: (310) 477-7098 or at [email protected], or can be viewed on the Parity website at newissue.muni.spglobal.com.

Dated: ____, 2026.

By: ____________________
Finance Director
City of Redondo Beach

* Preliminary amounts to be set forth in the Official Notice of Sale, subject to adjustment as provided therein. 668
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OFFICIAL NOTICE OF SALE
$[93,350,000]*

CITY OF REDONDO BEACH, CALIFORNIA

GENERAL OBLIGATION BONDS
(MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026
The City of Redondo Beach (the “City”) will receive electronic bids for the above-referenced Bonds (the “Bonds”) at the place and up to the time specified below:

SALE DATE: [October 27], 2026†
TIME: [9:00] a.m., Pacific time
PLACE: S&P Global’s BiDCOMPTM/PARITY® Competitive Bidding System at www.newissuehome.i-deal.com
DELIVERY DATE: [November 10], 2026*
NOTICE IS HEREBY GIVEN that electronic bids will be received through the S&P Global BiDCOMPTM/PARITY® Competitive Bidding System (“Parity”) at www.newissuehome.i-deal.com for the purchase of all, but not less than all, of the Bonds. Bidding procedures and sale terms are as follows:

ISSUE: The Bonds are described in the City’s Preliminary Official Statement for the Bonds dated [_____], 2026 (the “Preliminary Official Statement”).

Bidders must submit electronic bids only in the manner and subject to the terms and conditions described under “TERMS OF SALE – Form of Bids; Delivery of Bids” below. No bid will be received after the time for receiving bids specified above.

THE DATE OF RECEIPT OF BIDS FOR THE BONDS MAY BE POSTPONED OR CANCELLED AT OR PRIOR TO THE TIME BIDS ARE TO BE RECEIVED. NOTICE OF ANY SUCH POSTPONEMENT OR

CANCELLATION WILL BE COMMUNICATED BY THE CITY THROUGH THOMSON REUTERS AND/OR BLOOMBERG BUSINESS NEWS (COLLECTIVELY, THE “NEWS SERVICES”) AND/OR PARITY (AS DESCRIBED UNDER “TERMS OF SALE – FORM OF BIDS; DELIVERY OF BIDS” BELOW) AS SOON AS PRACTICABLE FOLLOWING SUCH POSTPONEMENT OR CANCELLATION. Notice of the new date and time for receipt of bids shall be given through Parity and/or the News Services as soon as practicable following a postponement and no later than 1:00 p.m., Pacific time, on the business day preceding the new date for receiving bids.

* Preliminary, subject to change.
† Subject to postponement or cancellation in accordance with this Official Notice of Sale. 669
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As an accommodation to bidders, notice of such postponement and of the new sale date and time will be given to any bidder requesting such notice from:

PUBLIC RESOURCES ADVISORY GROUP
Telephone: 310.477.7098
Attention: Louis Choi (email: [email protected])
(the “Municipal Advisor”), provided, however, that failure of any bidder to receive such supplemental notice shall not affect the sufficiency of such notice or the legality of the sale. See “TERMS OF SALE – Postponement or Cancellation of Sale.”
The City reserves the right to modify or amend this Official Notice of Sale in any respect, including, without limitation, increasing or decreasing the principal amounts of any maturity of the Bonds and adding or deleting maturity dates; provided, however, that any such modification or amendment will be communicated to potential bidders through the News Services and/or Parity not later than 1:00 p.m,.

Pacific time, on the business day preceding the date for receiving bids. Failure of any potential bidder to receive notice of any modification or amendment will not affect the sufficiency of any such notice or the legality of the sale. Bidders are required to bid upon the Bonds as so modified or amended. See “TERMS OF SALE – Right to Modify or Amend.”
Bidders are referred to the Preliminary Official Statement for additional information regarding the City, the Bonds, the security for the Bonds and other matters. See “CLOSING PROCEDURES AND DOCUMENTS - Official Statement.” Capitalized terms used and not defined in this Official Notice of Sale shall have the meanings ascribed to them in the Preliminary Official Statement.

This Official Notice of Sale will be submitted for posting to Parity, as described in “TERMS OF SALE - Form of Bids; Delivery of Bids” below. In the event the summary of the terms of sale of the Bonds posted on Parity conflicts with this Official Notice of Sale in any respect, the terms of this Official Notice of Sale shall control, unless a notice of an amendment is given as described herein.

TERMS RELATING TO THE BONDS

THE AUTHORITY FOR ISSUANCE, PURPOSES, PAYMENT OF PRINCIPAL AND INTEREST,

REDEMPTION PRICE, DEFEASANCE, SOURCES AND USES OF FUNDS, SECURITY AND SOURCES OF

PAYMENT, FORM OF LEGAL OPINION OF BOND COUNSEL AND OTHER INFORMATION REGARDING THE

BONDS ARE PRESENTED IN THE PRELIMINARY OFFICIAL STATEMENT, WHICH EACH BIDDER IS DEEMED TO HAVE OBTAINED AND REVIEWED PRIOR TO BIDDING FOR THE BONDS. THIS OFFICIAL NOTICE OF SALE GOVERNS ONLY THE TERMS OF SALE, BIDDING, AWARD AND CLOSING PROCEDURES FOR THE BONDS. THE

DESCRIPTION OF THE BONDS CONTAINED IN THIS OFFICIAL NOTICE OF SALE IS QUALIFIED IN ALL RESPECTS BY THE DESCRIPTION OF THE BONDS CONTAINED IN THE PRELIMINARY OFFICIAL STATEMENT.

Issue. The Bonds will be issued in the aggregate principal amount of $[93,350,000*] as fully registered bonds without coupons in book-entry form in denominations of $5,000 or any integral multiple of that amount, as designated by the winning bidder of the Bonds (the “Purchaser”). The Bonds will be dated the date of delivery, which is expected to be [November 10], 2026*. If the sale is postponed, notice of the new date of sale will also set forth the new expected date of delivery of the Bonds.

* Preliminary; subject to change.
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Book-Entry Only. The Bonds will be registered in the name of a nominee of The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Individual purchases of the Bonds will be made in book-entry form only, and the Purchaser will not receive certificates representing an interest in the Bonds purchased. As of the date of award of the Bonds, the Purchaser must either participate in DTC or must clear through or maintain a custodial relationship with an entity that participates in DTC.

Interest Rates and Bid Constraints. Interest on the Bonds is payable each March 1, and September 1, commencing March 1, 2027 (each an “Interest Payment Date”). Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months from the dated date of the Bonds. See the Preliminary Official Statement – “THE BONDS – Payment of Interest and Principal.” Bidders may specify any number of separate interest rates, and the same rate or rates may be repeated as often as desired, provided:
 All Bonds maturing at any one time shall bear interest at the same rate per annum.  Each Bond shall bear interest from its dated date to its stated maturity date at the single rate of interest specified in the bid.
 The true interest cost of the Bonds shall not exceed 7%.  Each Bond maturing on or before September 1, 2036 shall bear an interest rate of eight percent (8%) or less; each Bond maturing on or after September 1, 2037 shall bear an interest rate of six percent (6%) or less.]
 No zero rate of interest is permitted.
 All interest rates shall be expressed as multiples of one one-eighth (1/8th) or onetwentieth (1/20th) of one percent per annum.

No purchase price bid shall be less than [105.5%] of principal. Premium bids must be paid as part of the purchase price, and no bid will be accepted which contemplates the waiver of any interest or other concession by the bidder as substitute for payment in full of the purchase price.

Principal Payments of the Bonds. The Bonds shall be serial and/or term bonds, as specified by each bidder. Principal of the Bonds shall be payable each September 1, commencing September 1, 2028.

The principal amount of the Bonds maturing or subject to mandatory sinking fund payment in any year shall be in integral multiples of $5,000. For any term bonds specified, the principal amount for a given year may be allocated only to a single term Bond and must be part of an uninterrupted annual sequence from the first mandatory sinking fund payment to the term Bond maturity. The aggregate amount of the principal of the serial maturity or mandatory sinking fund payment for the Bonds is shown below for information purposes only.

Subject to the City’s right to modify or amend this Official Notice of Sale (see “TERMS OF SALE - Right to Modify or Amend”), and to adjustment as provided in this Official Notice of Sale (see “– Adjustment of Principal Payments”), the aggregate principal amount of the serial maturity or mandatory sinking fund payment for the Bonds in each year is as follows:
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MATURITY DATE
(SEPTEMBER 1)

PRINCIPAL
AMOUNT*
2028 $1,400,000
2029 1,210,000
2030 1,305,000
2031 1,410,000
2032 1,525,000
2033 1,645,000
2034 1,775,000
2035 1,920,000
2036 2,075,000
2037 2,240,000
2038 2,375,000
2039 2,515,000
2040 2,665,000
2041 2,825,000
2042 2,995,000
2043 3,155,000
2044 3,320,000
2045 3,495,000
2046 3,675,000
2047 3,870,000
2048 4,085,000
2049 4,305,000
2050 4,545,000
2051 4,795,000
2052 5,055,000
2053 5,335,000
2054 5,630,000
2055 5,940,000
2056 6,265,000
Adjustment of Principal Payments. The principal amounts set forth in this Official Notice of Sale reflect certain estimates of the City with respect to the likely interest rates and premium of the winning bid. The City reserves the right to change the principal payment schedule set forth above after the determination of the winning bidder by adjusting one or more of the principal payments in increments of $5,000 or to eliminate maturities in their entirety, as determined in the sole discretion of the City.

Any such adjustment of principal payments shall be based on the schedule of principal payments provided by the City to be used as the basis of bids. Any such adjustment will not change the average per Bond dollar amount of the underwriter’s discount. Any such adjustment will be communicated to the winning bidder within 30 hours after receipt of such bid by the City. In the event of any such adjustment, no rebidding or recalculation of the bids submitted will be required or permitted, and no winning bid may be withdrawn.

See also “TERMS OF SALE - Right to Modify or Amend” regarding the City’s right to modify or amend this Official Notice of Sale in any respect including, without limitation, increasing or decreasing the 672
OFFICIAL NOTICE OF SALE – PAGE 5
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principal amount of any serial maturity or mandatory sinking fund payment and adding or deleting serial or term maturity and mandatory sinking fund payment dates, along with corresponding principal amounts with respect thereto.

THE WINNING BIDDER WILL NOT BE PERMITTED TO WITHDRAW ITS BID, CHANGE THE INTEREST

RATES IN ITS BID OR THE REOFFERING PRICES IN ITS ISSUE PRICE CERTIFICATE AS A RESULT OF ANY

CHANGES MADE TO THE PRINCIPAL PAYMENTS OF THE BONDS IN ACCORDANCE WITH THIS OFFICIAL NOTICE OF SALE.

Optional Redemption. The Bonds maturing on or after September 1, 2037*, will be subject to redemption prior to their stated maturity dates as a whole or in part, on any date, from any moneys provided at the option of the City, in each case on and after September 1, 2036*, at a redemption price equal to the principal amount of Bonds called for redemption, plus accrued interest to the date fixed for redemption, without premium. See the Preliminary Official Statement – “THE BONDS – Redemption – Optional Redemption.”
Mandatory Redemption. Bidders must specify whether each maturity of the Bonds is a serial or a term bond. For any such specified term bond, its mandatory sinking fund payments must be on consecutive principal payment dates immediately preceding the maturity for such term bond. The Bonds specified as term bonds in the bid of the winning bidder will be subject to mandatory sinking fund redemption prior to their stated maturity date, on each September 1, at a redemption price equal to the principal amount thereof plus accrued interest thereon to the redemption date, without premium. See the Preliminary Official Statement – “THE BONDS – Redemption – Mandatory Redemption.” Legal Opinion and Tax Matters. The Bonds will be issued as bonds the interest on which is intended to be excludable from gross income for federal or state income tax purposes. Upon delivery of the Bonds, Nossaman LLP, Bond Counsel to the City (“Bond Counsel”), will deliver its legal opinion as to the validity, enforceability and tax status of the Bonds. A complete copy of the proposed form of the opinion of Bond Counsel is set forth in Appendix _ to the Preliminary Official Statement. A copy of the opinion of Bond Counsel will be furnished to the Purchaser upon delivery of the Bonds. See the Preliminary Official Statement – “TAX MATTERS.”

TERMS OF SALE

TERMS OF SALE
Par and Premium Bids; No Net Discount Bids. All bids for the Bonds shall be for par or more; no net discount bids for the Bonds will be accepted. No bid for the Bonds submitted at a price less than [105.5%] of the aggregate par value of such Bonds will be considered. Individual maturities of Bonds may be reoffered at par, a premium or a discount.

Form of Bids; Delivery of Bids. Each bid must be: (1) for not less than all of the Bonds offered for sale; (2) unconditional; and (3) submitted through Parity. Bids must conform to the procedures established by Parity. All bids will be deemed to incorporate all of the terms of this Official Notice of Sale.

The submission of a bid electronically through Parity shall constitute and be deemed the bidder’s signature on the bid for the purchase of the Bonds.

If the sale of the Bonds is cancelled or postponed, any bids received prior to such cancellation or postponement shall be rejected. No bid submitted to the City shall be subject to withdrawal or 673
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modification by the bidder. No bid will be accepted after the time for receiving bids. The City retains absolute discretion to determine whether any bidder is a responsible bidder and whether any bid is timely and complete and conforms to this Official Notice of Sale. The City takes no responsibility for informing any bidder prior to the time for receiving bids that any bid is incomplete or nonconforming with this Official Notice of Sale or has not been received.

Bids will be received exclusively through Parity in accordance with this Official Notice of Sale. For further information about Parity, potential bidders may contact the Municipal Advisor at the number provided above or Parity at: 212.849.5023.

Warnings Regarding Electronic Bids. None of the City, the Municipal Advisor or Bond Counsel assumes any responsibility for any error contained in any bid submitted electronically or for failure of any bid to be transmitted, received or opened by the time for receiving bids, and each bidder expressly assumes the risk of any incomplete, untimely or nonconforming bid submitted by electronic transmission by such bidder, including, without limitation, by reason of garbled transmissions, mechanical failure, engaged telecommunications lines, or any other cause arising from submission by electronic transmission.

When a bidder submits an electronic bid for the Bonds through Parity, such bidder thereby agrees to the following terms and conditions: (1) if any provision in this Official Notice of Sale with respect to the Bonds conflicts with information or terms provided or required by Parity, this Official Notice of Sale, including any amendments or modifications issued through Parity and/or the News Services, will control; (2) each bidder will be solely responsible for making necessary arrangements (including any costs and expenses) to access Parity for purposes of submitting its bid in a timely manner and in compliance with the requirements of this Official Notice of Sale; (3) the City will not have any duty or obligation to provide or assure access to Parity to any bidder, and the City will not be responsible for proper operation of, or have any liability for, any delays, interruptions or damages caused by the use of Parity or any incomplete, inaccurate or untimely bid submitted by any bidder through Parity; (4) the City is permitting use of Parity as a communication mechanism, and not as an agent of the City, to facilitate the submission of electronic bids for the Bonds; Parity is acting as an independent contractor, and is not acting for or on behalf of the City; (5) the City is not responsible for ensuring or verifying bidder compliance with any procedures established by Parity; and (6) the City may regard the electronic transmission of a bid through Parity (including information regarding the purchase price of the Bonds or the interest rates for any maturity of the Bonds) as though the information were submitted and executed on the bidder’s behalf by a duly authorized signatory.

Process of Award. The City will take final action awarding the Bonds or rejecting all bids for the Bonds not later than thirty (30) hours after the time for receipt of bids, unless such time period is waived by the winning bidder.

The following five (5) steps collectively constitute the City’s process for the final award of the Bonds (the “Award Process”):
(1) The Municipal Advisor, on behalf of the City, will give a verbal notice of award of the Bonds to the apparent winning bidder (the “Apparent Winning Bidder”) to be determined as described below under “–Basis of Award;”
(2) The Apparent Winning Bidder shall, within 30 minutes after being verbally notified of the award of the Bonds, advise the City and the Municipal Advisor, of the initial public offering prices of the Bonds.
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(3) The Apparent Winning Bidder shall provide the Good Faith Deposit, as described below under “–Good Faith Deposit;”
(4) The Municipal Advisor will email to the Apparent Winning Bidder confirmation of the final principal amortization schedule and purchase price for the Bonds, after adjustments, if any, are made, as described under “TERMS RELATING TO THE BONDS - Adjustment of Principal Payments;” and (5) The City will email to the Apparent Winning Bidder its written final award (the “Certificate of Award”).

Upon completion of the Award Process, the Apparent Winning Bidder will be deemed the Purchaser of the Bonds and will be contractually bound by the terms of this Official Notice of Sale to purchase the Bonds, which contract shall consist of and be evidenced collectively by: (a) this Official Notice of Sale; (b) the bid transmitted electronically by the Apparent Winning Bidder through Parity; and (c) the Certificate of Award.

Basis of Award. Unless all bids for the Bonds are rejected, the Bonds will be awarded to the responsible bidder who submits a conforming bid that represents the lowest true interest cost to the City for the Bonds. The true interest cost will be that nominal interest rate that, when compounded semiannually and applied to discount all payments of principal of and interest payable on the Bonds to the dated date of such Bonds results in an amount equal to the principal amount of such Bonds plus the amount of any net premium. For the purpose of calculating the true interest cost, mandatory sinking fund payments for any term bonds specified by a bidder will be treated as Bonds maturing on the dates of such mandatory sinking fund payments. In the event that two or more bidders offer bids for the Bonds with same combined true interest cost, the City will determine by lot which bidder will be awarded the Bonds.

Bid evaluations or rankings made by Parity are not binding on the City.

Estimate of True Interest Cost. Each bidder is requested, but not required, to supply an estimate of the true interest cost based upon its bid, which will be considered as informative only and not binding on either the bidder or the City.

Multiple Bids. In the event multiple bids for the Bonds are received from a single bidder by any means or combination thereof, the City shall be entitled to accept the bid representing the lowest true interest cost to the City, and each bidder agrees by submitting multiple bids to be bound by the bid representing the lowest true interest cost to the City.

Good Faith Deposit. To secure the City from any loss resulting from the failure of an Apparent Winning Bidder to comply with the terms of its bid, the Apparent Winning Bidder must provide to the City a good faith deposit in the amount of $1,867,000 (the “Good Faith Deposit”).

Upon the determination by the City of the Apparent Winning Bidder, the Municipal Advisor will (i) provide to the Apparent Winning Bidder the wire transfer information and (ii) request the Apparent Winning Bidder to immediately wire the Good Faith Deposit to the City. No later than ninety (90) minutes after the time the Municipal Advisor requeststhe Apparent Winning Bidder to wire the Good Faith Deposit to the City, the Apparent Winning Bidder must wire the Good Faith Deposit to the City and provide the Federal wire reference number of the Good Faith Deposit to the Municipal Advisor. In the event that the Apparent Winning Bidder does not wire the Good Faith Deposit to the City or does not provide the Federal wire reference number of such Good Faith Deposit to the Municipal Advisor within the time specified 675
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above, the City may reject the bid of the Apparent Winning Bidder and award the Bonds to a responsible bidder that submitted a conforming bid that represents the next lowest true interest cost to the City.

No interest will be paid upon the Good Faith Deposit made by any bidder. The Good Faith Deposit of the Purchaser will immediately become the property of the City. The Good Faith Deposit will be held and invested for the exclusive benefit of the City. The Good Faith Deposit, without interest thereon, will be credited against the purchase price of the Bonds at the time of delivery thereof.

If the purchase price is not paid in full upon tender of the Bonds, the City will retain the Good Faith Deposit, and the Purchaser will have no right in or to the Bonds or to the recovery of its Good Faith Deposit, or to any allowance or credit by reason of such deposit, unless it shall appear that the Bonds would not be validly delivered to the Purchaser in the form and manner proposed, except pursuant to a right of cancellation. See “CLOSING PROCEDURES AND DOCUMENTS – Right of Cancellation.” In the event of nonpayment for the Bonds by the winning bidder, the City reserves any and all rights granted by law to recover the full purchase price of the Bonds and, in addition, any damages suffered by the City.

Reoffering Prices, Establishment of Issue Price and Issue Price Certificate. (a) In addition to providing the initial public offering prices of the Bonds within 30 minutes of notification as the Apparent Winning Bidder as described above, the winning bidder for the Bonds shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at Closing an “issue price” or similar certificate setting forth (i) the reasonably expected initial offering price to the public or (ii) if the “competitive sale requirements” (as defined in paragraph (b) below) are not satisfied and the parties agree that the “10% test” (as defined in paragraph (c) below) shall apply to the Bonds, the sales price or prices of each maturity of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Bond Counsel.
(b) The City intends that Treasury Regulation Sections 1.148-1(f)(3)(i) and 1.148-1(f)(2)(iii) (providing a special rule for competitive sales and defining the term “competitive sale” for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the “competitive sale requirements”) because:
(1) the City shall disseminate this Official Notice of Sale to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (2) all bidders shall have an equal opportunity to bid; (3) the City may receive bids for the Bonds from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (4) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest interest cost), as set forth in this Official Notice of Sale.

Any bid submitted pursuant to this Official Notice of Sale shall be considered a firm offer for the purchase of the Bonds as specified in the bid.
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(c) In the event that the competitive sale requirements are not satisfied, the City shall so advise the winning bidder. The City may determine to treat (i) the first price at which 10% of any maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity and/or (ii) the initial offering price to the public as of the sale date of any maturity of the Bonds as the issue price of that maturity (the “hold-the-offering-price rule”), in each case applied on a maturity-by-maturity basis. The winning bidder shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date and time of the award of the Bonds. The City shall promptly advise the winning bidder, at or before the time of award of the Bonds, which maturities of the Bonds shall be subject to the 10% test or shall be subject to the hold-the-offering-price rule. Bids will not be subject to cancellation in the event that the City determines to apply the hold-the-offering-price rule to any maturity of the Bonds. Bidders should prepare their bids on the assumption that some or all of the maturities of the Bonds will be subject to the holdthe-offering-price rule in order to establish the issue price of the Bonds. For purposes of this paragraph (c), Bonds maturing on the same date but having different interest rates and CUSIP® numbers shall be treated as separate maturities of the Bonds.
(d) By submitting a bid for the Bonds, the winning bidder shall (i) confirm that the underwriters have offered or will offer the Bonds to the public on or before the date of award at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalf of the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell unsold Bonds of any maturity to which the hold-the-offering-price rule shall apply to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of (i) the close of the fifth (5th) business day after the sale date; or (ii) the date on which the underwriters have sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. The winning bidder shall promptly advise the City when the underwriters have sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public, if that occurs prior to the close of the fifth (5th) business day after the sale date. (e) If the competitive sale requirements are not satisfied, then until the 10% test has been satisfied as to each maturity of the Bonds, the winning bidder agrees to promptly report to the City the prices at which the unsold Bonds of that maturity have been sold to the public. That reporting obligation shall continue, whether or not the Closing has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold. (f) The City acknowledges that, in making the representation set forth above, the winning bidder will rely on (i) the agreement of each underwriter to comply with the hold-the-offering-price rule, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the hold-the-offering-price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter is a party to a retail distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the hold-the-offering-price rule, as set forth in the retail distribution agreement and the related pricing wires. The City further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the hold-the-offering-price rule and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a retail distribution agreement to comply with its corresponding agreement regarding the hold-the-offering-price rule as applicable to the Bonds. 677
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(g) By submitting a bid for the Bonds, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as applicable (A) to report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder that either the 10% test has been satisfied as to such Bonds of that maturity or all Bonds of that maturity have been sold to the public, (B) to comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed by the winning bidder and as set forth in the related pricing wires, (C) to promptly notify the winning bidder of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public, and (D) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker-dealer, the winning bidder shall assume that each order submitted by the underwriter, dealer, or broker-dealer is a sale to the public, and (ii) any agreement among underwriters relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter that is a party to a retail distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such retail distribution agreement (A) to report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder or such underwriter that either the 10% test has been satisfied as to such Bonds of that maturity or all Bonds of that maturity have been sold to the public and (B) to comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed by the winning bidder or such underwriter and as set forth in the related pricing wires. (h) Sales of any Bonds to any person that is a related party to an underwriter shall not constitute sales to the public for purposes of this Official Notice of Sale. Further, for purposes of this Official Notice of Sale:
(1) “public” means any person other than an underwriter or a related party, (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the public),
(3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and
(4) “sale date” means the date that the Bonds are awarded by the City to the winning bidder. 678
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Right of Rejection and Waiver of Irregularity. The City reserves the right, in its sole discretion, to reject any and all bids and to waive any irregularity or informality in any bid which does not materially affect such bid or change the ranking of the bids.

Right to Modify or Amend. Other than with respect to postponement or cancellation as described in this Official Notice of Sale, and in addition to the City’s right to adjust the principal payment amounts of the Bonds as provided in “TERMS RELATING TO THE BONDS - Adjustment of Principal Payments” the City reserves the right to modify or amend this Official Notice of Sale in any respect including, without limitation, increasing or decreasing the principal amount of any serial maturity or mandatory sinking fund payment for the Bonds and adding or deleting serial or term maturity and mandatory sinking fund payment dates, along with corresponding principal amounts with respect thereto; provided, that, subject to the terms of this Official Notice of Sale (see “TERMS RELATING TO THE BONDS - Adjustment of Principal Payments”) any such modification or amendment will be communicated to potential bidders through Parity and/or the News Services not later than 1:00 p.m., Pacific time, on the business day preceding the date for receiving bids. Failure of any potential bidder to receive notice of any modification or amendment will not affect the sufficiency of any such notice or the legality of the sale.

Postponement or Cancellation of Sale. The City may postpone or cancel the sale of the Bonds at or prior to the time for receiving bids. Notice of such postponement or cancellation shall be given through Parity and/or the News Services as soon as practicable following such postponement or cancellation. If a sale is postponed, notice of a new sale date will be given through Parity and/or the News Services as soon as practicable following a postponement and no later than 1:00 p.m., Pacific time, on the business day preceding the new date for receiving bids. Failure of any potential bidder to receive notice of postponement or cancellation will not affect the sufficiency of any such notice.

Prompt Award. The Finance Director of the City will take official action awarding the Bonds or rejecting all bids for the Bonds not later than thirty (30) hours after the time for receipt of bids for the Bonds, unless such time period is waived by the Purchaser.

Sales Outside of the United States. The Purchaser must undertake responsibility for compliance with any laws or regulations of any foreign jurisdiction in connection with any sale of the Bonds to persons outside the United States.

Insurance. No bids with municipal bond insurance will be accepted.

CLOSING PROCEDURES AND DOCUMENTS
Delivery and Payment. Delivery of the Bonds will be made through the facilities of DTC in New York, New York, and is presently expected to take place on or about [November 1], 2026 *
. Payment for
the delivery of the Bonds shall be coordinated by the City at such place as may be mutually agreed upon by the City and the Purchaser. Such payment and delivery is called the “Closing.” Payment for the Bonds (including any premium) must be made at the time of delivery in immediately available funds to the City Treasurer. Any expense for making payment in immediately available funds shall be borne by the Purchaser. The City will deliver to the Purchaser, dated as of the delivery date, the legal opinion with respect to the Bonds, described in Appendix D to the Preliminary Official Statement.

Qualification for Sale. The City will furnish such information and take such action not inconsistent with law asthe Purchaser may request and the City may deem necessary or appropriate to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other 679
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jurisdictions of the United States of America as may be designated by the Purchaser; provided, that the City will not execute a general or special consent to service of process or qualify to do business in connection with such qualification or determination in any jurisdiction. By submitting its bid for the Bonds, the Purchaser assumes all responsibility for qualifying the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of the states and jurisdictions in which the Purchaser offers or sells the Bonds, including the payment of fees for such qualification. Under no circumstances may the Bonds be sold or offered for sale or any solicitation of an offer to buy the Bonds be made in any jurisdiction in which such sale, offer or solicitation would be unlawful under the securities laws of the jurisdiction.

No Litigation. The City will deliver a certificate stating that no litigation of any nature is pending, or to the knowledge of the officer of the City executing such certificate, threatened, restraining or enjoining the sale, issuance or delivery of the Bonds or any part thereof, or the entering into or performance of any obligation of the City, or concerning the validity of the Bonds, the ability of the City to levy and collect the ad valorem tax required to pay debt service on the Bonds, the corporate existence or the boundaries of the City, or the entitlement of any officers of the City who will execute the Bonds to their respective offices.

Right of Cancellation. A Purchaser will have the right, at its option, to cancel the contract if the City fails to execute the purchased Bonds and tender the same for delivery within thirty (30) days from the sale date, and in such event the Purchaser will be entitled only to the return of the Good Faith Deposit, without interest thereon.

CUSIP Numbers. The Municipal Advisor will timely apply for CUSIP® numbers with respect to the Bonds as required by Municipal Securities Rulemaking Board Rule G-34. The Purchaser shall also notify CUSIP Global Services (“CGS”) as to the final structure of the Bonds. It is anticipated that CUSIP® numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the terms hereof. CUSIP® is a registered trademark of the American Bankers Association. CGS is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. CUSIP® data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. Neither the City, the Municipal Advisor nor Bond Counsel takes any responsibility for the accuracy of CUSIP® numbers.

Expenses of the Purchaser. The Purchaser shall be solely responsible for the payment of any and all CGS charges, California Debt and Investment Advisory Commission fees (under California Government Code Section 8856), Depository Trust Company charges and all other expenses of the Purchaser. Pursuant to Section 8856 of the California Government Code, the Purchaser must pay to the California Debt and Investment Advisory Commission, within sixty (60) days from the sale date, the statutory fee with respect to the Bonds purchased.

Official Statement. Copies of the Preliminary Official Statement with respect to the Bonds will be furnished or electronically transmitted to any potential bidder through www.newissuehome.i-deal.com or upon request to the Municipal Advisor. (The contact information for the Municipal Advisor is set forth above in this Official Notice of Sale.) In accordance with Rule 15c2-12 of the Securities and Exchange Commission, as amended (“Rule 15c2-12”), the City deems the Preliminary Official Statement final as of its date, except for the omission of certain information as permitted by Rule 15c2-12. Within seven (7) business days after the date of award of the Bonds, the Purchaser will be furnished with a reasonable number of copies (not to exceed fifty (50)) of the final Official Statement, without charge, for distribution in connection with the resale 680
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of the Bonds. The Purchaser must notify the City in writing within two (2) days of the sale of the Bonds if such Purchaser requires additional copies of the final Official Statement to comply with applicable regulations. The cost for such additional copies will be paid by the Purchaser.

By submitting a bid for the Bonds, the Purchaser agrees to: (1) disseminate to all members of its underwriting syndicate, if any, copies of the Official Statement, including any supplements; (2) promptly file a copy of the Official Statement, including any supplements, with the Municipal Securities Rulemaking Board; and (3) take any and all other actions necessary to comply with applicable Securities and Exchange Commission and Municipal Securities Rulemaking Board rules governing the offering, sale and delivery of the Bonds, including, without limitation, the delivery of an Official Statement, including any supplements, to each investor who purchases the Bonds.

The form and content of the Official Statement is within the sole discretion of the City. The name of the Purchaser of the Bonds will not appear on the cover of the Official Statement. At the request of the Purchase), the City will include in the Official Statement information concerning the qualification of the offer and sale in foreign jurisdictions (and related settlement procedures) of the Bonds. If the inclusion of such language is requested by the Purchaser, such language shall be provided by, and be the responsibility of, the Purchaser. The City does not and will not take responsibility whatsoever with respect to the accuracy or completeness of the information provided by the Purchaser with respect to the qualification of the offer or sale of the Bonds in foreign jurisdictions (and related settlement procedures) or whether such information or any other information in the Official Statement is sufficient or adequate for the Purchaser to offer or sell the Bonds in any foreign jurisdiction. The Purchaser must undertake responsibility for compliance with all laws and regulations of any applicable foreign jurisdiction in connection with any offer or sale of any Bonds by the Purchaser to persons outside the United States.

Certificate Regarding Official Statement. At the time of delivery of the Bonds, the Purchaser will receive a Certificate, signed by an authorized representative of the City, confirming to the Purchaser that (a) such authorized representative has determined that, to the best of such authorized representative’s knowledge and belief, the Official Statement (excluding reoffering information, information relating to The Depository Trust Company and its book-entry system, as to which no view will be expressed) did not as of its date, and does not as of the date of delivery of the Bonds, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading, (b) such authorized representative knows of no material adverse change in the condition or affairs of the City that would make it unreasonable for the Purchaser to rely upon the Official Statement in connection with the resale of the Bonds, and (c) the City authorizes the Purchaser to distribute copies of the Official Statement in connection with the resale of the Bonds.

Purchaser’s Certificate Concerning Official Statement. As a condition of delivery of the Bonds, the Purchaser of the Bonds will be required to execute and deliver to the City, prior to the date of Closing, a certificate to the following effect with respect to the Bonds:
(i) The Purchaser has provided to the City the initial reoffering prices or yields on the Bonds as printed in the Official Statement, and the Purchaser has made a bona fide offering of the Bonds to the public at the prices and yields so shown; (ii) The Purchaser, in accordance with and as part of its responsibilities under the federal securities laws and the securities laws of any foreign jurisdiction where the Purchaser offers 681
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or sells, or plans to offer or sell, any Bonds, has reviewed the information in the Official Statement and has not notified the City of the need to modify or supplement the Official Statement;
(iii) The Purchaser undertakes responsibility for compliance with all laws and regulations of any applicable foreign jurisdiction in connection with any offer or sale of any Bonds by such Purchaser to persons outside the United States; and (iv) The foregoing statements shall be true and correct as of the date of Closing.

Continuing Disclosure. In order to assist bidders in complying with Rule 15c2-12, the City will undertake, pursuant to a Continuing Disclosure Agreement, to provide certain annual financial information, operating data and notices of the occurrence of certain events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the Official Statement. Except as otherwise disclosed in the Preliminary Official Statement under the heading “CONTINUING DISCLOSURE,” for the past five years, the City has been in compliance in all material respects with its continuing disclosure obligations under Rule 15c2-12.

Additional Information. Prospective bidders should read the entire Preliminary Official Statement, copies of which may be obtained in electronic form from the City or the Municipal Advisor.

Dated: [____________], 2026
Finance Director
City of Redondo Beach
682
A-1
09960.00000\45503483.2

EXHIBIT A TO OFFICIAL NOTICE OF SALE

FORM OF ISSUE PRICE CERTIFICATE
(if at least three bids from competitive providers are received) (TO BE DELIVERED BY THE PURCHASER

AS DESCRIBED IN THE OFFICIAL NOTICE OF SALE)
$[PAR]

CITY OF REDONDO BEACH, CALIFORNIA

GENERAL OBLIGATION BONDS
(MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026
The undersigned, on behalf of __________________ (the “Purchaser”), hereby certifies as set forth below with respect to the sale of the above-captioned City of Redondo Beach, California General Obligation Bonds (the “Bonds”).

1. Reasonably Expected Initial Offering Price.
(a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by the Purchaser are the prices listed in Schedule A (the “Expected Offering Prices”). The Expected Offering Prices are the prices for the Maturities of the Bonds used by the Purchaser in formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of the bid provided by the Purchaser to purchase the Bonds.
(b) The Purchaser was not given the opportunity to review other bids prior to submitting its bid.
(c) The bid submitted by the Purchaser constituted a firm offer to purchase the Bonds.

2. Defined Terms.
(a) Issuer means the City of Redondo Beach.
(b) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(b) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (c) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ____________, 2026. (d) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of 683
A-2
09960.00000\45503483.2
the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail or other third-party distribution agreement participating in the initial sale of the Bonds to the Public).

The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the Purchaser’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Nossaman LLP, Bond Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that Nossaman LLP may give to the Issuer from time to time relating to the Bonds.

Dated: [ISSUE DATE] [NAME OF PURCHASER]
By:

Name:

Title:
684
A-3
09960.00000\45503483.2

SCHEDULE A

EXPECTED OFFERING PRICES
(Attached)
685
A-4
09960.00000\45503483.2

SCHEDULE B
COPY OF PURCHASER’S BID
(Attached)
686
A-5
09960.00000\45503483.2

FORM OF ISSUE PRICE CERTIFICATE
(if fewer than three bids from competitive providers are received) (TO BE DELIVERED BY THE PURCHASER

AS DESCRIBED IN THE OFFICIAL NOTICE OF SALE)
$[PAR]

CITY OF REDONDO BEACH, CALIFORNIA

1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respected price listed in Schedule A.

2. Initial Offering Price of the Hold-the-Offering-Price Maturities. (a) The Purchaser offered the Hold-the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this Certificate as Schedule B.
(b) As set forth in the Official Notice of Sale, the Purchaser agreed in writing on or prior to the Sale Date that (i) for each Maturity of the Hold-the-Offering-Price Maturities the Purchaser would neither offer nor sell any of the Bonds of such Maturity to any person at a price higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “hold-the-offering-price rule”), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each brokerdealer who is a party to the retail distribution agreement, to comply with the hold-the-offering-price rule.

Pursuant to such agreement, no Underwriter (as defined below) offered or sold any Maturity of the Holdthe-Offering-Price Maturities at a price higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period.

2. Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.”
(b) Issuer means the City of Redondo Beach.
(c) Hold-the-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “Hold-the-Offering-Price Maturities.” (d) Holding Period means, with respect to any Hold-the-Offering-Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth (5th) business day after the 687
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Sale Date or (ii) the date on which the Purchaser sold at least 10% of such Hold-the-Offering-Price Maturity to the Public at prices no higher than the Initial Offering Price for such Hold-the-Offering-Price Maturity. (e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ____________, 2026. (h) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail or other third-party distribution agreement participating in the initial sale of the Bonds to the Public).

Dated: [ISSUE DATE] [NAME OF PURCHASER]
By:

Name:

Title:
688
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SCHEDULE A

SALE PRICES OF THE GENERAL RULE MATURITIES AND

INITIAL OFFERING PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITIES (Attached)
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09960.00000\45503483.2

SCHEDULE B

PRICING WIRE OR EQUIVALENT COMMUNICATION
(Attached)
690
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1 CONTINUING DISCLOSURE AGREEMENT
This Continuing Disclosure Agreement (the “Disclosure Agreement”) is executed and delivered by and between the City of Redondo Beach (the “City”) and Kosmont Financial Services, as dissemination agent, in connection with the issuance and delivery of $____________ City of Redondo Beach, California General obligation Bonds (Measure FP Public Safety Improvements) Series 2026 (the “Bonds”). The Bonds are issued pursuant to a Fiscal Agent Agreement, dated as of November 1, 2026 (the “Fiscal Agent Agreement”), by and between the City and U.S. Bank Trust Company, National Association.

SECTION 1. Purpose of this Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the City for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule.

SECTION 2. Definitions. In addition to the definitions set forth in the Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement.
“Annual Report Date” shall mean March 31 of each year (beginning in March 31, 2027). “Beneficial Owner” shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes.
“Fiscal Year” shall mean the one-year period ending on June 30 of each year or such other date. “Holder” means a registered owner of the Bonds.
“Listed Events” shall mean any of the events listed in Section 5(a) of this Disclosure Agreement. “MSRB” shall mean the Municipal Securities Rulemaking Board established pursuant to Section 15B(b)(1) of the Securities Exchange Act of 1934 or any other entity designated or authorized by the Securities and Exchange Commission to receive reports pursuant to the Rule. Until otherwise designated by the MSRB or the Securities and Exchange Commission, filings with the MSRB are to be made through the Electronic Municipal Marketplace Access (EMMA) website of the MSRB, currently located at http://emma.msrb.org.
“Participating Underwriter” shall mean any of the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds. “Rule” shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. 691
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2 SECTION 3. Provision of Annual Reports.
(a) The City shall provide, or cause the Dissemination Agent to provide, not later than the Annual Report Date to MSRB an Annual Report relating to the immediately preceding Fiscal Year which is consistent with the requirements of Section 4 of this Disclosure Agreement, which Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Agreement. (b) Not later than 15 business days prior to the Annual Report Date the City shall provide the Annual Report to the Dissemination Agent. If by such date, the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the first sentence of this subsection (b). (c) If the City is unable to provide to MSRB an Annual Report by the date required in subsection (a), the City shall send to MSRB a notice in substantially the form attached hereto as Exhibit A.

SECTION 4. Content of Annual Reports. The Annual Report shall contain or incorporate by reference the following:

1. The audited financial statements of the City for the most recently completed Fiscal Year, prepared in accordance with generally accepted accounting principles for governmental enterprises as prescribed from time to time by any regulatory body with jurisdiction over the City and by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available;

2. An update of the information contained in the following tables under the heading “PROPERTY TAXATION” in the Official Statement for the Bonds for the most recent fiscal or calendar year, as applicable, if the information is not included elsewhere in the Annual Report:

Table 1 – Assessed Valuation of Taxable Property
Table 2 – Assessed Valuation and Parcels by Land Use
Table 3 – Property Tax Levies and Collections
Table 4 – Property Tax Rates Direct and Overlapping Governments Table 5 – Top Ten Property Taxpayers
Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet Web site or filed with the Securities and Exchange Commission.

SECTION 5. Reporting of Listed Events. The City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds (in each case to the extent applicable) in a timely manner not more than ten business days after the occurrence of the event:

1. principal or interest payment delinquencies;
692
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3 2. non-payment related defaults, if material;

3. modifications to the rights of the Holders, if material;

4. optional, contingent or unscheduled calls, if material, and tender offers;

5. defeasances;

6. rating changes;

7. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds;

8. unscheduled draws on the debt service reserves reflecting financial difficulties;

9. unscheduled draws on the credit enhancements reflecting financial difficulties;

10. substitution of the credit or liquidity providers or their failure to perform;

11. release, substitution or sale of property securing repayment of the Bonds, if material;

12. bankruptcy, insolvency, receivership or similar proceedings of the City, which shall occur as described below;

13. appointment of a successor or additional trustee or the change of name of a trustee, if material;

14. the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;

15. incurrence of a financial obligation of the City, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect Bond holders, if material; or

16. default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties.

For these purposes, any event described in item 12 of this Section 5 is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a 693
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4 court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City.

The term financial obligation means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (3) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.

SECTION 6. Customarily Prepared and Public Information. Upon request, the City shall provide to any person financial information and operating data regarding the City which is customarily prepared by the City and is publicly available.

SECTION 7. Termination of Obligation. The City’s obligations under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5.

SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the City may amend this Disclosure Agreement, and any provision of this Disclosure Agreement may be waived, provided that, in the opinion of nationally recognized bond counsel, such amendment or waiver is permitted by the Rule. In the event of any amendment or waiver of a provision of this Disclosure Agreement, the City shall give notice of such amendment or waiver in the same manner as for a Listed Event under Section 5.

SECTION 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the City chooses to include any information in any notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the City shall not thereby have any obligation under this Disclosure Agreement to update such information or include it in any future notice of occurrence of a Listed Event.

SECTION 10. Default. In the event of a failure of the City to comply with any provision of this Disclosure Agreement, any Holder or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Agreement in the event of any failure of the City to comply with this Disclosure Agreement shall be an action to compel performance.

No Holder or Beneficial Owner of the Bonds may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the City satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the City shall have refused to comply therewith within a reasonable time.

SECTION 11. Filings with the MSRB. All financial information, operating data, financial statements, notices, and other documents provided to MSRB in accordance with this Disclosure Agreement shall be provided in an electronic format prescribed by MSRB and shall be accompanied by identifying information as prescribed by MSRB.
694
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5 SECTION 12. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the City, the Participating Underwriter and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
(Signature pages follow)
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S-2
Date: ___________, 2026

CITY OF REDONDO BEACH
_______________________________________
Authorized Signatory
-Signature PageContinuing Disclosure Agreement
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S-2
KOSMONT FINANCIAL SERVICES, as
Dissemination Agent
_______________________________________
Authorized Signatory
-Signature PageContinuing Disclosure Agreement
697
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A-1

EXHIBIT A

NOTICE TO MSRB OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: CITY OF REDONDO BEACH
Name of Issue: CITY OF REDONDO BEACH, CALIFORNIA

GENERAL OBLIGATION BONDS
(MEASURE FP PUBLIC SAFETY IMPROVEMENTS), SERIES 2026
Date of Issuance: __________, 2026
NOTICE IS HEREBY GIVEN that the City has not provided to the MSRB an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Agreement, dated _________, 2026.

The City anticipates that the Annual Report will be filed by ______________________.

Dated:

CITY OF REDONDO BEACH
By______________________________________
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spglobal.com/ratings October 8, 2026 1
S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings permission.

See terms of use/disclaimer on last page.

Research Update:

Redondo Beach, CA Series 2026 GO Bonds Assigned
'AA+' Rating; Outlook Stable
October 8, 2026
Overview
• S&P Global Ratings assigned its 'AA+' long-term rating to Redondo Beach, California’s anticipated $95.35 million series 2026 general obligation (GO) bonds. • At the same time, we affirmed our 'AA+' issuer credit rating on the city and our 'AA' long-term rating on the city’s lease-appropriation debt outstanding. • The outlook is stable.

Rationale
Security
Revenue from an unlimited ad valorem tax levied on all taxable property in the district secures the series 2026 bonds. Proceeds will be used to replace two fire stations and rebuild the police headquarters and police annex.

The lease-revenue bonds outstanding represent an interest in base rental payments made by the city, as lessee, to the Redondo Beach Community Financing Authority, as lessor. The base rental payments are subject to annual appropriation and we rate these obligations one notch lower than the city's general creditworthiness to account for the appropriation risk.

Redondo Beach City CouncilOctober 13, 2026

Redondo Beach City Council
October 13, 2026