Leaf tip scorch symptoms on redwood trees are found from the lower to upper canopy and include healthy leaves interspersed with brown and grey leaves or portions of leaves. Grey leaves typically have black margins into the healthy tissue.
Such symptoms are typically caused by a fungus called Pestalotiopsis funerea. They are commonly associated with drought, when rainfall occurs or when there is overhead watering around the tree. Drought stress predisposes plants to being infected, so the increased moisture facilitates the infection process. Normally the fungus will only seriously affect sprouts, as branches of adult tress will regrow areas killed by the infection within a year. In nursery settings it is important to increase ventilation and avoid big differences in watering regimes to minimize symptoms.
The first question to ask is what type of irrigation is being used currently on the hedge. Most landscape oak root fungus problems are due to overwatering in summer months. However, Thuja orientalis (=Platycladus orientalis) is quite susceptible to Armillaria even without heavy irrigation as highly susceptible species do not require excessively high soil moisture to be killed.
Prior to any new planting, as much of the old hedge (including roots) should be removed. In addition, any other decaying wood should be removed. Replanting with plants that do not require supplemental watering is best. Some CA natives that make good hedges include: ceanothus, island mountain mahogany, manzanita, and toyon. Non-native possibilities include Leyland cypress and Japanese privet. Keep in mind though that even plant species listed as resistant to oak root fungus will die if overwatered.