HomeMy WebLinkAboutCC 09-01-2026 Searchable PacketTuesday, September 1, 2026
6:45 PM
CITY OF CUPERTINO
Televised Regular Meeting (6:45)
10350 Torre Avenue, Council Chamber and via Teleconference
City Council
KITTY MOORE, MAYOR
LIANG CHAO, VICE MAYOR
J.R. FRUEN, COUNCILMEMBER
SHEILA MOHAN, COUNCILMEMBER
R "RAY" WANG, COUNCILMEMBER
IN PERSON AND TELECONFERENCE MEETING
For more information: (408) 777-3200 | www.cupertino.gov
AGENDA
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To access written translation during the meeting
Please scan the QR Code or click this link | ዴ㟂ᅾ宕㜆旛
厞⎽ṍ杉俢宸寞㉒㎶ṳ仛䟨ㇽ䂠⇢㭋擥㎌:
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Choose Language and Click Attend | 忰㋐寔姧⹝䂠⇢“ཧຍ
Use a headset on your phone for audio or read the transcript
on your device. |寞ὦ䔏㈲㜡倚㜡㔝␓柚桸 ㇽ✏宥⣮ᷱ旬寢
㕮⬾宗⼼
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CONDUCT OF BUSINESS
The Mayor is the presiding officer of the City Council. Any member of
the public may speak on any item on the agenda for up to three
minutes. All statements and questions must be addressed to the
Mayor.
City Council hearings serve as a venue for the discussion of sometimes
divergent points of view. Please respect the opinions of others and
refrain from cheering or clapping. That may delay the meeting or
intimidate other persons wishing to express alternate views. Actions
that disrupt the meeting will result in a warning, followed by removal
if disruption continues.
Oral public comments will be accepted during the meeting. Comments
may be made during “oral communications” for matters not on the
agenda, and during the public comment period for each agenda item.
Identifying yourself is voluntary and not required to attend the
meeting or provide comments.
FLOWCHART FOR HEARING ITEMS:
Mayor introduces
agenda item
Councilmembers report any site
visits or outside communications.
Speakers submit a Request to Speak
card, and are allowed up to 3 minutes
per individual. Council members may
ask questions of speakers.
Mayor invites members of
the public to speak about
the agenda item
For appeals of approvals, the
applicant may respond to
appellants presentation.
The Mayor may request a motion and
a second after the close of the public
hearing. Council then deliberates and
votes.
Mayor closes the public hearing
Councilmembers ask clarifying
questions.
PUBLIC HEARINGS
The City Council is required by law to
hold public hearings on certain matters
prior to making its decision. Notice to
interested parties is given by legal
advertisement in the local newspaper of
general circulation at least 10 calendar
days preceding the hearing date.
Applications requiring public hearings
include change of zoning, variances, use
permits, and tentative maps.
COUNCIL MEETINGS
The City Council regularly meets the first
and third Tuesdays of each month. These
meetings are held at 6:45 p.m. Closed
sessions, when needed, are normally held
at 6:00 p.m. Closed sessions cover items
such as personnel, litigation, or the sale ,
purchase, or lease of property. The law
requires certain actions taken in closed
session to be reported in open session.
Urgent business, holidays, or election
days may trigger special or adjourned
meetings. These meetings will be noticed
beforehand.
AGENDAS, MINUTES, AND PACKETS
AVAILABLE ON THE WEB
Agendas, minutes, and packets for
current and prior City Council and
Planning Commission meetings are
available at www.cupertino.org, or you
can purchase the items on CD.
CITY COUNCIL DECISION IS FINAL
Prior to seeking judicial review of any
adjudicatory (quasi‐judicial) decision,
interested persons must file a petition for
reconsideration within ten calendar days
of the date the City Clerk mails notice of
the City’s decision. Reconsideration
petitions must comply with the
requirements of Cupertino Municipal
Code §2.08.096. Contact the City Clerk’s
office for more information or go to
www.http://www.cupertino.org/index.as
px?page=125 for a reconsideration
petition form.
Mayor invites
applicant/appellant to
respond to public
comments (2 min)
City Council votes on
the agenda item
Staff reports and makes
recommendation
Applicant or Appellant
makes presentation
(up to 8 min)
Councilmembers ask
questions of staff or
applicant/appellant
Mayor opens the public hearing
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IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION
OPTIONS TO OBSERVE:
Members of the public wishing to observe the meeting may do so in one of the following
ways:
1) Attend in person at Cupertino Community Hall, 10350 Torre Avenue.
2) Tune to Comcast Channel 24 or Channel 26 and AT&T U-Verse Channel 99 on your TV.
3) Watch a live stream online at www.Cupertino.gov/youtube and
www.Cupertino.org/webcast
4) Attend in person at a remote Teleconference Location noticed pursuant to Gov. Code
54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda.
OPTIONS TO PARTICIPATE AND COMMENT:
Members of the public wishing to address the City Council may do so in the following
ways:
1) Appear in person for Open Session in Cupertino Community Hall.
A. During “Oral Communications”, the public may comment on matters not on the agenda,
and for agendized matters, the public may comment during the public comment period for
each agendized item.
B. Speakers are requested to complete a Speaker Card. While completion of Speaker Cards
is voluntary and not required to attend the meeting or provide comments, it is helpful for
the purposes of ensuring that all speakers are called upon.
C. Speakers must wait to be called, then proceed to the lectern/podium and speak into the
microphone when recognized by the Mayor.
D. Speakers are limited to three (3) minutes each. However, the Mayor may reduce the
speaking time depending on the number of people who wish to speak on an item. A
speaker representing a group between 2 and 5 members of the public in attendance may
have up to 2 minutes per group member to speak, up to 10 minutes maximum.
E. Please note that due to cyber security concerns, speakers are not allowed to connect any
personal devices at the lectern/podium. However, speakers that wish to share a document
(e.g. presentations, photographs or other documents) during oral comments may do so in
one of the following ways:
a) At the overhead projector at the podium, or
b) E-mail the document to cityclerk@cupertino.gov by 3:00 p.m. and staff will advance the
slides/share the documents during your oral comment.
2) Written Communications as follows:
A. E-mail comments to the City Council for Open Session at
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publiccomment@cupertino.gov as follows:
a. E-mail comments must be received by 4:00 p.m. on the day of the meeting in order to be
forwarded to the City Council before the meeting.
b. Emailed comments received following agenda publication but prior to, or during, the
meeting, will be posted to the City’s website after the meeting.
c. These e-mail comments will also be received by each City Councilmember, the City
Manager, and the City Clerk’s Office. Comments on non-agenda items sent to any other
email address will be included upon the sender's request.
B. Regular mail or hand delivered addressed to the: City Council, City Hall, 10300 Torre
Avenue, Cupertino, CA 95014
3) Teleconference in one of the following ways:
A. Online via Zoom on an electronic device (Audio and Video):
a) To access the meeting, speakers must register individually for the open session in
advance by clicking on the links below.
b) Registrants will receive a confirmation email containing information about joining the
webinar.
c) Speakers will be recognized by the name they use for registration. Once recognized,
speakers must click ‘unmute’ when prompted to speak.
d) Please read the following instructions about technical compatibility carefully: One can
directly download the teleconference (Zoom) software or connect to the meeting in their
internet browser. If a browser is used, make sure the most current and up-to-date browser,
such as the following, is used: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+.
Certain functionality may be disabled in older browsers, including Internet Explorer.
e) OPEN SESSION REGISTRATION LINK:
https://cityofcupertino.zoom.us/webinar/register/WN_0NHgf5lCQPiusQGn3YR6ug
B. By Phone (Audio only): No registration is required in advance and speakers may join
the meeting as follows:
a) Dial 669-900-6833
OPEN SESSION WEBINAR ID: 813 9432 2026
b) To “raise hand” to speak: Dial *9; When asked to unmute: Dial *6
c) Speakers will be recognized to speak by the last four digits of their phone number.
C. Online via the teleconferencing device (Audio and Video) being used to provide access
to the meeting from a remote Teleconference Location noticed pursuant to Gov. Code
54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda.
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a) Speakers are required to notify the City Clerk via email to cityclerk@cupertino.gov prior
to noon on the date of the meeting during which they plan to participate and comment from
the remote location noticed to ensure the City Clerk is prepared to accept their comment.
b) If the teleconferencing device malfunctions impeding access to the meeting from the
remote location, the speaker may alternatively participate via the other options for remote
participation provided above.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
CLOSED SESSION REPORT
CEREMONIAL ITEMS
1.Subject: Recognition of Bertha Smith on the occasion of her 100th birthday.
Present certificate of recognition to Bertha Smith on the
occasion of her 100th birthday.
A - Certificate of Recognition
2.Subject: Recognize September as National Preparedness Month.
Present proclamation to Collaborating Agencies' Disaster Relief
Effort (CADRE) in conjunction with the recognition of September as National
Preparedness Month.
A - Proclamation
3.Subject: Recognition of September 15-October 15 as National Hispanic Heritage Month.
Recognize September 15-October 15 as National Hispanic
Heritage Month.
4.Subject: Recognition of Innovation & Technology Department (Applications, GIS,
Infrastructure, Multimedia, and Administration Divisions).
Recommended Action: Recognize Innovation & Technology Department
(Applications, GIS, Infrastructure, Multimedia, and Administration Divisions).
A - Proclamation
POSTPONEMENTS AND ORDERS OF THE DAY
ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Council on any matter within
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the jurisdiction of the Council and not on the agenda for discussion. Oral Communications shall be
limited to 30 minutes. Additional speakers wishing to comment on non-agenda items may be given time
to speak at the end of the agenda, after the City Manager's report. Individual speakers are limited to
three (3) minutes. As necessary, the Chair may further limit the time allowed to individual speakers, or
reschedule remaining comments to the end of the meeting on a first come first heard basis, with priority
given to students. In most cases, State law will prohibit the Council from discussing or making any
decisions with respect to a matter not listed on the agenda. A councilmember may, however, briefly
respond to statements made or questions posed by speakers. A councilmember may also ask a question
for clarification, provide a reference for factual information, request staff to report back concerning a
matter, or request that an item be added to a future City Council agenda in response to public comment.
CONSENT CALENDAR (Items 5-11)
Items appearing on the Consent Calendar are considered routine City business and may be approved by
one motion. Typical items may include meeting minutes, awards of contracts, the ratification of
accounts payable, and second readings of ordinances. Any member of the Council may request to have
an item removed from the Consent Calendar based on the rules set forth in the City Council Procedures
Manual. Members of the public may provide input on one or more consent calendar items when the
Mayor asks for public comments on the Consent Calendar.
5.Subject: Approval of July 21, 2026 City Council meeting minutes
Recommended Action: Approve the July 21, 2026 City Council meeting minutes
A - Draft Minutes
6.Subject: Approval of August 11, 2026 City Council meeting minutes.
Recommended Action: Approve the August 11, 2026 City Council meeting minutes.
A - Draft Minutes
7.Subject: Receipt of Monthly Treasurer's Investment Report for July 2026.
Receive the Monthly Treasurer's Investment Report for July
2026.
Staff Report
A – Chandler Investment Report July 2026
8.Subject: Receipt of Monthly Treasurer's Report for July 2026.
Recommended Action: Receive the Monthly Treasurer's Report for July 2026.
Staff Report
A – Report of City-wide Receipts, Disbursements, and Cash Balances July 2026
B – Report of City-wide Fund BalancesNet Position July 2026
9.Subject: Acceptance of Annual Evaluation Report on the Federal Emergency
Management Agency (FEMA) Community Rating System’s (CRS) Program for Public
Information.
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Recommended Action: Adopt Resolution No. 26-091 Accepting the Annual Evaluation
Report for Fiscal Year 2026 (Year 5) of the 2021 Santa Clara County Multi-Jurisdictional
Program for Public Information.
Staff Report
A - Draft Resolution
B - Annual Evaluation Report for FY 26
C - July 31, 2026 Joint Letter for Reconsideration
10.Subject: Resolution amending the City of Cupertino Conflict of Interest Code for
officials and designated employees; Amended 2026 Local Agency Biennial Notice
Recommended Action: 1.) Adopt Resolution No. 26-092 rescinding Resolution No.
24-099 and amending the City of Cupertino Conflict of Interest Code for officials and
designated employees; and
2.) Authorize the City Manager to sign the amended 2026 Local Agency Biennial Notice
Staff Report
A - Adopted Resolution No. 24-099 rescinding Resolution No. 24-083 and amending the City of
Cupertino Conflict of Interest Code
B - Draft Resolution and Conflict of Interest Code (Redline)
C - Draft Resolution and Conflict of Interest Code (Clean)
D - Amended 2026 Local Biennial Notice Final
11.Subject: Acceptance of Legislative Review Committee (LRC) recommendation
supporting Senate Bill 922 (Laird) Vehicles: Local Agency Charges: Use of Streets or
Highways; Authorization for Mayor to send letters to the State Legislature.
Recommended Action: Adopt support position on Senate Bill 922 (Laird) Vehicles:
Local Agency Charges: Use of Streets or Highways and authorize the Mayor to send
letters to the State Legislature.
Staff Report
A - Draft Letter of Support
PUBLIC HEARINGS - None
Government Code Section 65103.5 limits the distribution of copyrighted material associated with the
review of development projects. Members of the public wishing to view plans that cannot otherwise be
distributed under Govt. Code Section 65103.5 may make an appointment with the Planning Division to
view them at City Hall by sending an email to planning@cupertino.gov. Plans will also be made
available digitally during the hearing to consider the proposal.
ACTION CALENDAR
12.Subject: Introduction of an ordinance amending Municipal Code Chapter 2.88 Audit
Committee Duties, Powers, and Responsibilities and Related Municipal Code Updates
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Recommended Action: Introduce and conduct the first reading of Ordinance No.
26-2285 "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING MUNICIPAL CODE CHAPTER 2.88 TO RENAME THE AUDIT
COMMITTEE AS THE AUDIT AND FINANCE COMMITTEE, UPDATE ITS DUTIES,
POWERS, AND RESPONSIBILITIES, AND UPDATE THE DIRECTOR OF FINANCE
TITLE" to:
1. Rename the Audit Committee as the "Audit and Finance Committee";
2. Modify Section 2.88.100(g) to read: “To review the City’s internal controls and
internal audit reports.”
3. Add Section 2.88.100(i): “To review the use of artificial intelligence in the City’s
financial reporting, internal controls over financial reporting, risk management, and
compliance.”
4. Update Section 2.88.110 referencing Director of Administrative Services to Director
of Finance
Staff Report
A - Draft Ordinance (Redline)
B - Draft Ordinance (Clean)
13.Subject: Consider approval of response to the 2025-2026 Civil Grand Jury of Santa
Clara County Report entitled VTA’s Management and Oversight of BART Silicon
Valley Phase II (“Civil Grand Jury Report”)
Recommended Action: Review, discuss and approve the City of Cupertino’s response
to that Civil Grand Jury Report.
Staff Report
A - Civil Grand Jury Report
ITEMS REMOVED FROM THE CONSENT CALENDAR
CITY MANAGER REPORT
14.Subject: City Manager Report
A - City Manager's Report
ORAL COMMUNICATIONS - CONTINUED
COUNCILMEMBER REPORTS
15.Subject: Councilmember Reports
A - Councilmember Report, Fruen
B - Councilmember Report, Mohan
C - Councilmember Report, Moore
FUTURE AGENDA ITEMS
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The Upcoming Draft Agenda Items Report is a tentative council meeting agenda calendar that lists
upcoming City Council meeting dates and tentative agenda items, all of which are subject to change.
16.Subject: Upcoming Draft Agenda Items Report
A - Upcoming Draft Agenda Items Report
ADJOURNMENT
Lobbyist Registration and Reporting Requirements: Individuals who influence or attempt to influence
legislative or administrative action may be required by the City of Cupertino’s lobbying ordinance
(Cupertino Municipal Code Chapter 2.100) to register and report lobbying activity. Persons whose
communications regarding any legislative or administrative are solely limited to appearing at or
submitting testimony for any public meeting held by the City are not required to register as lobbyists.
For more information about the lobbying ordinance, please contact the City Clerk’s Office at 10300
Torre Avenue, Cupertino, CA 95014; telephone (408) 777-3223; email cityclerk@cupertino.org; and
website: www.cupertino.org/lobbyist.
The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation
challenging a final decision of the City Council must be brought within 90 days after a decision is
announced unless a shorter time is required by State or Federal law.
Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must
file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the
City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal
Code §2.08.096. Contact the City Clerk’s office for more information or go to
http://www.cupertino.org/cityclerk for a reconsideration petition form.
In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this
meeting who is visually or hearing impaired or has any disability that needs special assistance should
call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for
assistance. In addition, upon request in advance by a person with a disability, meeting agendas and
writings distributed for the meeting that are public records will be made available in the appropriate
alternative format.
Any writings or documents provided to a majority of the Cupertino City Council after publication of
the packet will be made available for public inspection in the City Clerk’s Office located at City Hall,
10300 Torre Avenue, Cupertino, California 95014, during normal business hours; and in Council
packet archives linked from the agenda/minutes page on the City web site.
IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section
2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter
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on the agenda are included as supplemental material to the agendized item. These written
communications are accessible to the public through the City website and kept in packet archives. Do
not include any personal or private information in written communications to the City that you do not
wish to make public, as written communications are considered public records and will be made
publicly available on the City website.
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THE CITY COUNCIL AND STAFF
CITY COUNCIL
Cupertino is a General Law city organized under and subject to statutes of the State of California. It is governed by
the five‐member City Council with the Mayor as the presiding officer. City Council members are elected at‐large to
four‐year, overlapping terms. Each November a mayor and a vice‐mayor are selected by the City Council for a one‐
year term.
The City Council receives advice and assistance from eleven advisory bodies, which are appointed by the Council.
These are the Audit Committee, Bicycle Pedestrian Commission, Fine Arts Commission, Housing Commission,
Library Commission, Parks and Recreation Commission, Planning Commission, Public Safety Commission,
Sustainability Commission, Teen Commission, and Technology, Information, and Communications Commission.
Council members also serve on a variety of regional bodies, including:
∙ Association of Bay Area Governments
∙ League of California Cities
∙ Santa Clara County (SCC) Cities Association
∙ SCC Emergency Preparedness Council
∙ SCC Library District
∙ SCC Emergency Preparedness Commission
∙ Santa Clara Valley Water Commission and Water District
∙ SCC Transportation Authoritym
∙ West Valley Mayors and Managers
STAFF
The City Manager and the City Attorney are appointed by the Council. The City Manager is responsible for
interpreting and carrying out Council policies and direction, and as the chief administrative officer, the City Manager
coordinates the many activities of the city and appoints the professional and technical staff. The City Attorney is the
advisor to the City Council as a whole.
TYPES OF COUNCIL ACTIONS
ORDINANCES
Ordinances are the means by which the City enacts its local laws. Unless an urgent situation exists, ordinances will
first be presented at a Council meeting as a “first reading." At a subsequent Council meeting, there will be a “second
reading and adoption." Ordinances go into effect after a waiting period of thirty days, in most cases, during which
time the summary of the ordinance is published in a local newspaper approved for this purpose.
RESOLUTIONS
Resolutions and minute orders are the means by which the City Council formally adopts policies or approves specific
actions. These go into effect when adopted.
APPEALS
Any interested person, including a Council member, may appeal a Planning Commission or Director of Community
Development decision to the City Council. An appeal must be submitted in writing to the City Clerk within 14
calendar days of the mailing of the notice of the decision.
RECONSIDERATION
Prior to seeking judicial review of any adjudicatory (quasi‐judicial) decision, interested persons must file a petition
for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision.
Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the
City Clerk’s office for more information or go to www.http://www.cupertino.org/index.aspx?page=125 for a
reconsideration petition form.
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COMMUNICATING WITH COUNCIL
(408)777‐1389
(408)777‐3192
(408)777‐1316
(408)777-1326
(408)777‐3138
(408)777‐3139
All Council members:
Kitty Moore
Liang Chao
J.R. Fruen
Sheila Mohan
R "Ray" Wang
Executive Assistant
City Hall
citycouncil@cupertino.gov
KMoore@cupertino.gov
LiangChao@cupertino.gov
JRFruen@cupertino.gov
SMohan@cupertino.gov
RWang@cupertino.gov
serenat@cupertino.gov
www.cupertino.gov (408) 777‐CITY
Please note: the City Council discourages submission of written materials on the day of the meeting as this does not
provide enough time to give the materials fair evaluation. If you must provide written materials on the day of the
meeting, as least one copy must be given to the City Clerk for the permanent record, and ten copies are preferred.
NEWS AND NOTICES FROM CITY HALL
OPTIONS TO VIEW AND PARTICIPATE REMOTELY
The City Channel broadcasts City Council meetings, agenda previews, public service announcements, and other
programs of community interest, on Comcast Channel 24 or Channel 26 and U-verse Channel 99.
USEFUL TELEPHONE NUMBERS
City of Cupertino (City Hall) General Information and Comments (408) 777‐CITY
Fire (Emergency) Santa Clara County Fire Dept. dispatch 911
Fire (Non‐Emergency ) Santa Clara County Fire Dept.(408) 378‐4010
Garbage Recology South Bay (408) 725‐4020
Gas & Electricity Pacific Gas & Electric (PG&E) 1‐800‐743‐5000
Recreation & Community Quinlan Community Center (408) 777‐3120
Services
Police (Emergency)Santa Clara County Sheriff dispatch 911
Police (Non‐Emergency) Santa Clara County Sheriff (408) 868‐6600
Public Health Santa Clara County Public Health (408) 732‐3720
Sanitary Sewers Cupertino Sanitary District (408) 253‐7071
Water San Jose Water (408) 279‐7900
California Water (650) 917‐0152
Tuesday 6:45 PM (Live)
Saturday 9:00 AM9:
Wednesday 10:00 AM & 7:00 PM
Sunday 12:00 PM
Friday 10:00 AM & 7:00 PM
Monday 10:00 AM & 7:00 PM
City Council videos are available on demand at www.cupertino.gov. Livestream can be watched online at
www.Cupertino.gov/youtube and www.Cupertino.gov/webcast. To participate remotely, view the "Options
to Observe" section in the posted City Council Agenda.
AUDIO
Tune into Radio Cupertino, 1670 AM, for meeting announcements, public service messages, and emergency
announcements.
NEWS, COMMUNITY INFORMATION, AND E-NOTIFICATION SIGN-UP CAN ALSO BE FOUND AT
https://www.facebook.com/cityofcupertino
https://twitter.com/cityofcupertino
https://www.instagram.com/cityofcupertino
https://www.cupertino.gov/notify
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CITY OF CUPERTINO
Agenda Item
Subject: Recognition of Bertha Smith on the occasion of her 100th birthday.
Present certificate of recognition to Bertha Smith on the occasion of her 100th birthday.
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Certificate of Recognition
Presented to
Bertha Smith
September 1, 2026
In celebration of your 100th birthday, the City of Cupertino honors this remarkable milestone and the
many years it represents. Reaching a century is a rare and meaningful achievement, bringing with it a
lifetime of experiences, memories, and moments worth celebrating. The City congratulates you on this
special occasion and wishes you continued health, happiness, and joy in the years ahead.
____________________________
The Honorable Kitty Moore
Mayor, City of Cupertino
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CITY OF CUPERTINO
Agenda Item
Subject: Recognize September as National Preparedness Month.
Present proclamation to Collaborating Agencies' Disaster Relief Effort (CADRE) in conjunction with
the recognition of September as National Preparedness Month.
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Proclamation
WHEREAS, National Preparedness Month is an opportunity for every resident
of the City of Cupertino to join communities across the nation in
preparing their homes, businesses, and neighborhoods for
emergencies, including earthquakes, wildfires, floods, and other
large-scale disasters we cannot predict; and
WHEREAS,
improving community response to disasters and increasing the
likelihood of survival, recovery, and a return to normalcy
following a catastrophic event; and
WHEREAS,
City’s volunteers work year-round to strengthen emergency
preparedness through programs such as Block Leader and Citizen
Corps; and
WHEREAS,
for disasters, help their loved ones do the same, participate in
neighborhood preparedness activities, and register for the Santa
Clara County AlertSCC mass notification system.
THEREFORE,
Proclaim the month of September 2026 as
National Preparedness Month
in the City of Cupertino and call on all government agencies, private organizations,
businesses, and residents of Cupertino to take steps to prepare for emergencies and work
together to build a stronger, more resilient community.
IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of
Cupertino to be affixed this Tuesday, September First, Two Thousand and Twenty-Six.
____________________________
The Honorable Kitty Moore
Mayor, City of Cupertino
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CITY OF CUPERTINO
Agenda Item
Subject:Recognition of September 15-October 15 as National Hispanic Heritage Month.
Recognize September 15-October 15 as National Hispanic Heritage Month.
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CITY OF CUPERTINO
Agenda Item
Subject: Recognition of Innovation & Technology Department (Applications, GIS, Infrastructure,
Multimedia, and Administration Divisions).
Recognize Innovation & Technology Department (Applications, GIS, Infrastructure, Multimedia, and
Administration Divisions).
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Proclamation
WHEREAS, National IT Professionals Day was created in 2015 and is
celebrated the third Tuesday of September each year; and
WHEREAS,
engineers, system administrators, database administrators,
business systems analysts, GIS analysts, and service desk
technicians who ensure our networks, applications, tools,
technology, and information remain secure and that technical
processes, systems, and devices operate smoothly; and
WHEREAS,
professionals who strengthen community communication and
resiliency, connect people through technology, and help provide
opportunities for healthy living, equity, and sustainability; and
WHEREAS,
contributions of IT professionals and the integral role they play in
supporting our community and helping make Cupertino a
desirable place to live, work, play, and visit; and
WHEREAS, In today's hybrid work environment, our dependency on IT teams
has become increasingly significant. Every day, IT professionals
are called upon to overcome new challenges so employees can do
their jobs and organizations can function smoothly.
THEREFORE,
Proclaim the day of September 15, 2026, as
National IT Professionals Day
in the City of Cupertino and encourage all residents to recognize IT professionals for the
critical but often unseen work they do to keep our networks and applications running.
IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of
Cupertino to be affixed this Tuesday, September First, Two Thousand and Twenty-Six.
____________________________
The Honorable Kitty Moore
Mayor, City of Cupertino
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CITY OF CUPERTINO
Agenda Item
Subject: Approval of July 21, 2026 City Council meeting minutes
Approve the July 21, 2026 City Council meeting minutes
CITY OF CUPERTINO Printed on 8/26/2026Page 1 of 1
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DRAFT MINUTES
CUPERTINO CITY COUNCIL
Tuesday, July 21, 2026
At 5:30 p.m., Mayor Moore called the Regular City Council Meeting to order in City Hall
Conference Room C, 10300 Torre Avenue, Cupertino, CA 95014 and via teleconference.
ROLL CALL
Present: Mayor Kitty Moore, Vice Mayor Liang Chao, and Councilmembers J.R. Fruen, Sheila
Mohan, and R “Ray” Wang (arrived at 5:34 p.m.)
In open session prior to closed session, Mayor Moore opened the public comment period, and
seeing no one, closed the public comment period.
CLOSED SESSION
1. Subject: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Existing litigation pursuant to paragraph (5) of Subdivision (c) of Section 54956.9(d)(1)
of the California Government Code:
a. Lixin (Leon) Chen, et al. c. City of Cupertino, et al., Santa Clara County Superior
Court, Case No, 25CA462857
b. Yes in My Backyard, et al. v. City of Cupertino, et al. Santa Clara County Superior
Court, Case No. 25CA263924
c. Garden Gate Coalition for Mary Avenue Safety v. City of Cupertino, Santa Clara
County Superior Court, Case No. 26CV488611
d. Mark Fantozzi v. City of Cupertino, Santa Clara County Superior Court, Case No.
26CV492787
Council discussed existing litigation.
2. Subject: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Anticipated litigation pursuant to paragraph (2) of subdivision (d) and paragraph (1) of
subdivision (e) of Section 54956.9 of the California Government code (1 case)
Council discussed anticipated litigation.
RECESS
At 6:23 p.m., Mayor Moore recessed the meeting.
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OPEN SESSION
CALL TO ORDER
At 6:45 p.m., Mayor Moore reconvened the Regular City Council Meeting and led the Pledge
of Allegiance in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and
via teleconference.
ROLL CALL
Present: Mayor Kitty Moore, Vice Mayor Liang Chao, and Councilmembers J.R. Fruen, Sheila
Mohan, and R “Ray” Wang.
CLOSED SESSION REPORT
City Attorney Floy Andrews announced no reportable action taken during the closed session
held at 5:30 p.m.
CEREMONIAL ITEMS – None
POSTPONEMENTS AND ORDERS OF THE DAY
MOTION: Moore moved and Wang seconded to postpone Item No. 7. to a date to be
determined. The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan,
and Wang. Noes: None. Abstain: None. Absent: None.
ORAL COMMUNICATIONS
Written communications for this item included emails to the Council.
The following members of the public spoke:
Toby Leavitt discussed the free Shakespeare in the Park event.
Sid Rajaram, speaking on behalf of the Public Safety Commission, discussed troubling trends
of online fraud.
Subiksha Shri, Councilmember Student Intern, discussed survey findings regarding city issues
and events.
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Aisha Kasamsetty, Councilmember Student Intern, discussed survey findings regarding
safety.
Marcus Pungaru, Councilmember Student Intern, discussed survey findings regarding
attendance statistics at community events
Kacie Chen, Councilmember Student Intern, discussed survey findings on the overall
community.
Shreya Singh, Councilmember Student Intern, discussed survey findings regarding issues
residents want Council to prioritize.
Rhoda Fry discussed the Shakespeare in the Park event, student internship program, Vallco
wall, mitigation fees and building codes.
Harvey McKeon (virtually), representing North Coast States Carpenters Union, discussed The
Rise’s settlement agreement and re-evaluation of below market rate fees.
Jennifer Griffin (virtually) discussed the trees and wall at The Rise development project.
Call-In User_1 (virtually) discussed a code enforcement matter involving their home.
CONSENT CALENDAR (Items 3-9)
As noted under Postponements and Orders of the day, Item No. 7 was postponed to a date to
be determined.
Items Nos. 3 and 6 were removed from the Consent Calendar by Mayor Moore and
Councilmember Mohan, respectively.
Fruen requested Item No. 9 on the Consent Calendar to be voted on separately.
Mayor Moore opened the public comment period for Item Nos. 4, 5, 8, and 9, and seeing no
one, closed the public comment period.
MOTION: Wang moved and Fruen seconded to approve Consent Calendar Item Nos. 4, 5 and
8. The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan, and Wang.
Noes: None. Abstain: None. Absent: None.
MOTION: Moore moved and Wang seconded to approve Consent Calendar Item No. 9. The
motion failed (requires a two-thirds vote to pass) with the following vote: Ayes: Moore, Chao,
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and Wang. Noes: Fruen and Mohan. Abstain: None. Absent: None.
At 7:36 p.m., Mayor Moore recessed the meeting. The meeting reconvened at 7:54 p.m. with all
Councilmembers present.
4. Subject: Approval of July 7, 2026 City Council meeting minutes
Recommended Action: Approve the July 7, 2026 City Council meeting minutes
5. Subject: Ratifying Accounts Payable for the periods ending June 5, 2026, and June 18,
2026
Recommended Action: A. Adopt Resolution No. 26-081 ratifying Accounts Payable for
the Period ending June 5, 2026; and
B. Adopt Resolution No. 26-082 ratifying Accounts Payable for the Period ending June
18, 2026
7. Subject: Adoption of Resolution No. 26-083 authorizing the City Manager to accept
$850,000 in federal grant funds from the Community Project Funding Program,
awarding a Design Professional Services Agreement to Biggs Cardosa Associates, Inc.
for a total not to exceed amount of $1,278,700, for the McClellan Road Bridge Project,
and authorizing City Manager to execute the agreement.
Recommended Action: 1. Adopt Resolution No. 26-083 authorizing the City Manager
to take all necessary steps to accept $850,000 in federal grant funds from the
Community Project Funding Program for the McClellan Road Bridge Project;
2. Award a Design Professional Services Agreement to Biggs Cardosa Associates, Inc.
for McClellan Road Bridge Project in a total not to exceed amount of $1,278,700; and
3. Authorize the City Manager to execute a Design Professional Services Agreement
with Biggs Cardosa Associates, Inc. when all conditions have been met.
As noted under Postponements and Orders of the Day, this item was postponed to a
date to be determined.
Written communications for this item included a supplemental report with staff
answers to councilmember questions.
8. Subject: Approval of a Resolution submitting an Ordinance to the voters to amend the
General Plan and add Title 21 to the Municipal Code to Require any Rezoning of Parks,
Parklands, or Open Space to be Approved by Two-Thirds of Cupertino Voters, placing
this Measure on the ballot for the November 3, 2026 General Municipal Election and
consolidating it with the statewide election.
Recommended Action: Adopt Resolution No. 26-84 submitting an Ordinance (ballot
measure) to the voters to amend the General Plan and add Title 21 to the Municipal
Code to require rezoning of parks, parklands, or open space to be approved by
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two-thirds of Cupertino voters, placing the measure on the November 3, 2026 General
Municipal Election ballot, and consolidating it with the statewide election.
9. Subject: Approval of a Resolution submitting an Ordinance to the voters to Extend the
Current Utility Users Tax and Telecommunications Tax by 10 Years after its Expiration
Date, placing this Measure on the ballot for the November 3, 2026 General Municipal
Election and consolidating it with the statewide election.
Recommended Action: Adopt Resolution No. 26-085 submitting an Ordinance
(measure) to the voters for extending the current Utility Users Tax and
Telecommunications Tax by 10 years after its expiration date.
Written communications for this item included a supplemental report with staff
answers to councilmember questions.
ORAL COMMUNICATIONS
At 7:58 p.m. Mayor Moore reopened Oral Communications.
Chuck Adamo, representing North Coast States Carpenters Union, discussed oversight for
SB35 compliance of The Rise development project.
Jaime Arteaga, representing North Coast States Carpenters Union, discussed prevailing
wages, trained workforce and state labor standards regarding The Rise development project.
Oscar Marzariegos, representing North Coast States Carpenters Union, discussed the
contractors and builders of The Rise development project.
Vijay R. discussed the wall at The Rise development project.
PUBLIC HEARINGS
10. Subject: Public Hearing and approval of lien assessment and collection of fees on
private parcels resulting from abatement of public nuisance (weeds and/or brush) for
the annual Weed and Brush Abatement Programs
Recommended Action: 1. Conduct a public hearing to consider objections from any
property owners listed on the assessment report; and
2. Adopt Resolution No. 26-086 approving the lien assessment and collection of fees on
private parcels for the annual Weed and Brush Abatement Programs.
Written communications for this item included a staff presentation.
City Clerk Lauren Sapudar gave a presentation, and County of Santa Clara Weed
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Abatement Manager Garik Iosilevsky, and Inspectors Danny Robles and Ismael
Candelas were also present.
Mayor Moore opened the public hearing and, seeing no one, closed the public hearing.
MOTION: Mohan moved and Wang seconded the staff recommendation to:
1. Conduct a public hearing to consider objections from any property owners listed on
the assessment report; and
2. Adopt Resolution No. 26-086 approving the lien assessment and collection of fees on
private parcels for the annual Weed and Brush Abatement Programs.
The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan, and
Wang. Noes: None. Abstain: None. Absent: None.
11. Subject: Adoption of a Resolution Approving an Economic Development and Sales Tax
Sharing Agreement with Insight Direct Worldwide, Inc. (Insight).
Recommended Action: 1. Conduct a public hearing as required by Government Code
Section 53083 for the proposed Economic Development Subsidy Report;
2. Adopt Resolution No. 26-087 (Attachment C) approving an Economic Development
and Sales Tax Sharing Agreement by and between the City of Cupertino and Insight
Direct Worldwide, Inc. and authorizing the City Manager to execute the agreement.
Director of Finance Jonathan Orozco gave a verbal report.
Anita Luck, Partner, Aleshire & Wynder; and Rachael Crump and Daniel Pottenger,
Insight Direct Worldwide, Inc. were also present.
Councilmembers asked questions and made comments.
Mayor Moore opened the public hearing and, seeing no one, closed the public hearing.
Councilmembers asked questions and made comments.
MOTION: Fruen moved and Wang seconded the staff recommendation to:
1. Conduct a public hearing as required by Government Code Section 53083 for the
proposed Economic Development Subsidy Report; and
2. Adopt Resolution No. 26-087 (Attachment C) approving an Economic Development
and Sales Tax Sharing Agreement by and between the City of Cupertino and Insight
Direct Worldwide, Inc. and authorizing the City Manager to execute the agreement.
The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan, and
Wang. Noes: None. Abstain: None. Absent: None.
ACTION CALENDAR
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12. Subject: Review of attendance record and consideration of an attendance policy waiver
for Library Commissioner Janki Chokshi.
Recommended Action: Review the attendance record of Library Commissioner Janki
Chokshi and determine whether to grant a waiver of the attendance policy, pursuant to
the Commissioner’s Handbook, to retain Commissioner Chokshi on the Library
Commission, or terminate the appointment.
City Clerk Lauren Sapudar gave a verbal report.
Councilmembers asked questions and made comments.
Mayor Moore opened the public comment period and, seeing no one, closed the public
comment period.
Councilmembers asked questions and made comments.
MOTION: Moore moved and Fruen seconded to grant an attendance policy waiver,
allowing Commissioner Chokshi to remain on the Library Commission through her
term ending January 30, 2027. The motion passed with the following vote: Ayes:
Moore, Chao, Fruen, and Mohan. Noes: None. Abstain: Wang. Absent: None.
13. Subject: Amendments to the City’s Naming, Donation, and Sponsorship Policies
Recommended Action: Adopt the following resolutions:
1. Resolution No. 26-088 Rescinding Resolution No. 17-103 and Adopting an Amended
Naming of City Facilities Policy;
2. Resolution No. 26-089 Rescinding Resolution No. 17-102 and Adopting an Amended
Policy for Accepting Donations;
3. Resolution No. 26-090 Rescinding Resolution No. 18-101 and Adopting an Amended
Policy for Accepting Sponsorships.
Written communications for this item included a staff presentation.
Assistant to the City Manager Astrid Robles gave a presentation, and Deputy City
Manager Kirsten Squarcia was also present.
Councilmembers asked questions and made comments.
Mayor Moore opened the public comment period, and the following members of the
public spoke:
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Rhoda Fry
San Rao (virtually)
Jennifer Griffin (virtually)
Councilmembers asked questions and made comments.
Mayor Moore closed the public comment period.
MOTION: Moore moved and Wang seconded to table the item and bring it back as a
study session to include discussion of plaque size, a comparison of branding and logos
with surrounding cities; and impose a moratorium on branding and labeling until
further direction from Council.
FRIENDLY AMENDMENT: Moore made a friendly amendment to also bring back the
commemorative bench policy for clarification. (Wang accepted the friendly
amendment).
The motion passed with the following vote: Ayes: Moore, Chao, Mohan, and Wang.
Noes: Fruen. Abstain: None. Absent: None.
ITEMS REMOVED FROM THE CONSENT CALENDAR
3. Subject: Approval of a Final Map and the Subdivision Improvement Agreement for
Phase 1 of The Rise Development Project; Acceptance of Public Street Dedications and
Public Easements; and Abandonment of Unnecessary Public Easements (Tract No.
10706; Applicant: Vallco Property Owner LLC; Location: Formerly 10123 North Wolfe
Road (APN: 316-20-121 & 316-20-122)
Recommended Action: Adopt Resolution No. 26-080 (Attachment A):
1) Approving Final Map Tract No. 10706 and authorizing its recordation;
2) Accepting the public roadway dedication and public easements, and abandoning the
unnecessary public easements, as shown on the Final Map; and
3) Authorizing the City Engineer to execute and record the Subdivision Improvement
Agreement in substantially the form attached.
As noted under the Consent Calendar, this item was removed from the Consent
Calendar.
Written communications for this item included emails to the Council.
Director of Public Works Chad Mosely was present to answer questions.
Councilmembers asked questions and made comments.
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Mayor Moore opened the public comment period and the following members of the
public spoke:
Jennifer Griffin (virtually)
San Rao (virtually)
Councilmembers asked questions and made comments.
Mayor Moore closed the public comment period.
MOTION: Wang moved and Mohan seconded the staff recommendation to: Adopt
Resolution No. 26-080 (Attachment A):
1. Approving Final Map Tract No. 10706 and authorizing its recordation;
2. Accepting the public roadway dedication and public easements, and abandoning the
unnecessary public easements, as shown on the Final Map; and
3. Authorizing the City Engineer to execute and record the Subdivision Improvement
Agreement in substantially the form attached.
The motion passed with the following vote: Ayes: Chao, Fruen, Mohan, and Wang.
Noes: None. Abstain: Moore. Absent: None.
6. Subject: Approval of a Third Amendment to extend the term through October 31, 2026,
of the Interim City Attorney Agreement for City Attorney services by and between the
City of Cupertino and Aleshire & Wynder, LLP, with Floy Andrews as Interim City
Attorney.
Recommended Action: Approve the Third Amendment, extending the term through
October 31, 2026, of the Interim City Attorney Agreement for City Attorney services
with Aleshire & Wynder, LLP.
As noted under the Consent Calendar, this item was removed from the Consent
Calendar.
Councilmembers asked questions and made comments.
Interim City Attorney Floy Andrews recused herself from the discussion and left the
dais.
Mayor Moore opened the public comment period and the following members of the
public spoke:
Jennifer Griffin (virtually)
Rhoda Fry
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Councilmembers asked questions and made comments.
Mayor Moore closed the public comment period.
MOTION: Chao moved and Moore seconded to approve the Third Amendment,
extending the term through January 31, 2027, of the Interim City Attorney Agreement
for City Attorney services with Aleshire & Wynder, LLP. The motion passed with the
following vote: Ayes: Moore, Chao, Fruen, Mohan, and Wang. Noes: None. Abstain:
None. Absent: None.
Interim City Attorney Floy Andrews returned to the dais following the vote.
CITY MANAGER REPORT
14. Subject: City Manager Report
Written communications for this item included a supplemental report and Attachment
B – Updated City Manager Report.
City Manager Tina Kapoor included the City Manager Newsletter, which includes
recent highlights and upcoming events as provided in the published agenda.
ORAL COMMUNICATIONS - CONTINUED - None
COUNCILMEMBER REPORTS
15. Subject: Councilmember Reports
Councilmembers included reports on their various committees and events as provided
in the published agenda.
FUTURE AGENDA ITEMS
16. Subject: Upcoming Draft Agenda Items Report
ADJOURNMENT
Mayor Moore adjourned in memory of United States Air Force Major Robert “Bolton” Dee.
At 9:51 p.m., Mayor Kitty Moore adjourned the Regular City Council Meeting.
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Minutes prepared by:
________________________________
Lauren Sapudar, City Clerk
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CITY OF CUPERTINO
Agenda Item
Subject: Approval of August 11, 2026 City Council meeting minutes.
Approve the August 11, 2026 City Council meeting minutes.
CITY OF CUPERTINO Printed on 8/26/2026Page 1 of 1
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DRAFT MINUTES
CUPERTINO CITY COUNCIL
Tuesday, August 11, 2026
SPECIAL MEETING
At 5:00 p.m., Mayor Moore called the special City Council Meeting to order in City Hall
Conference Room C, 10300 Torre Avenue, Cupertino, CA 95014; and Teleconference Location
Pursuant to Gov. Code 54953(b): Gaylord Texan Lobby at 1501 Gaylord Trail, Grapevine, TX
76051.
ROLL CALL
Present: Mayor Kitty Moore, Vice Mayor Liang Chao, and Councilmembers J.R. Fruen, Sheila
Mohan, and R “Ray” Wang (participated virtually).
Councilmember Wang confirmed that he was in the noticed public location and that the
location was open to the public. He further confirmed that he had posted the notice of the
meeting at his remote location, that no other individuals over the age of 18 were with him, and
that no one had indicated to him that they were intending to make public comments or
address the Council.
Interim City Attorney, Floy Andrews provided a public statement concerning the item to be
heard.
In open session prior to closed session, Mayor Moore opened the public comment period
regarding any items on the agenda. No members of the public requested to speak, and Mayor
Moore closed the public comment period.
CLOSED SESSION
1. Subject: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION:
Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2), one (1)
potential case
Council met with legal counsel on the anticipated litigation.
OPEN SESSION REPORT REGARDING CLOSED SESSION
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Page 4
No report was given.
ADJOURNMENT
At 5:32 p.m., Mayor Kitty Moore adjourned the Special City Council Meeting.
Minutes prepared by:
________________________________
Lauren Sapudar, City Clerk
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CITY OF CUPERTINO
Agenda Item
Subject:Receipt of Monthly Treasurer's Investment Report for July 2026.
Receive the Monthly Treasurer's Investment Report for July 2026.
CITY OF CUPERTINO Printed on 8/26/2026Page 1 of 1
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FINANCE DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
1
CITY COUNCIL STAFF REPORT
Date: September 1, 2026
Subject
Receipt of Monthly Treasurer's Investment Report for July 2026
Recommended Action
Receive the Monthly Treasurer's Investment Report for July 2026
Reasons for Recommendation
The Monthly Investment Report is a routine report provided to City Council and is
provided as Attachment A with this report.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
City Work Program Item/Description
None.
Council Goal
Fiscal Strategy
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: Jonathan Orozco, Finance Director
Reviewed by: Kirsten Squarcia, Deputy City Manager
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
A – Chandler Investment Report July 2026
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INVESTMENT REPORT
City of Cupertino | As of July 31, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:
For questions about your account, please call (800) 317-4747,
or contact clientservice@chandlerasset.com
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.34
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TABLE OF CONTENTS
City of Cupertino | Account #10659 | As of July 31, 2026
ECONOMIC UPDATE
ACCOUNT PROFILE
CONSOLIDATED INFORMATION
PORTFOLIO HOLDINGS
TRANSACTIONS
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ECONOMIC UPDATE
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▪
▪
▪
Renewed hostilities between the United States and Iran unsettled energy markets in July, even as domestic data painted a more
encouraging picture of the economy. Crude prices retreated from their near-term peak after diplomatic overtures eased fears of a prolonged
closure of the Strait of Hormuz, though the conflict continues to fuel market volatility. Inflation cooled meaningfully in June after the recent
run-up tied to tariffs and conflict-related uncertainty. Growth slowed from the first quarter’s pace, while hiring continued at a moderated
clip. The Chandler team continues to expect the Federal Reserve to hold the federal funds rate steady through the remainder of 2026,
provided actual and market-based measures of inflation remain contained.
The Federal Open Market Committee held the federal funds rate at 3.50%to 3.75% during its July 28 to 29 meeting, extending its policy
pause into a fifth consecutive gathering. Three regional Reserve Bank presidents, Cleveland's Beth Hammack, Minneapolis's Neel Kashkari,
and Dallas's Lorie Logan, dissented in favor of raising rates by a quarter point, citing inflation that has stayed above target for more than
five years. Chair Kevin Warsh,in his second meeting leading the Committee, again declined to offer explicit forward guidance, preferring
instead to let incoming data dictate the timing of any future move. The balance sheet runoff continued without modification. Officials next
convene September 15 to 16.
Treasury yields advanced across the curve in July, with the two-year note ending the month at 4.29%, the five-year at 4.45%, and the ten-
year at 4.74%. The two-year to ten-year spread narrowed to 45 basis points from 69 basis points at year end, while the three-month bill to
ten-year spread widened to roughly 97 basis points. Because the two-year yield rose more than the ten-year yield over the year to date, the
curve has flattened rather than steepened, a shift driven by growing expectations that the Federal Reserve may need to raise rates rather
than cut before year end. The two-year to ten-year spread has averaged near 95 basis points since 2005,underscoring how compressed the
relationship between short and long maturities remains relative to that longer run norm.
ECONOMIC UPDATE
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-400
-200
0
200
400
600
800
1,000
MO
M
C
h
a
n
g
e
I
n
T
h
o
u
s
a
n
d
s
(
0
0
0
'
s
)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Ra
t
e
(
%
)
Nonfarm payrolls unexpectedly declined by 23,000 in July, challenging the view that the labor market was continuing to expand at a modest
pace. Revisions to the prior two months further weakened the picture: May payroll growth was revised down to 63,000 from 129,000,
erasing 66,000 jobs, while June was revised down to 20,000 from 57,000, a 37,000-job reduction. Together, the revisions reduced
employment growth in May and June by 103,000 positions.By industry, local government education led July’s declines, shedding 50,000
jobs, followed by leisure and hospitality (-40,000) and retail trade (-19,000). Health care partially offset those losses, adding 22,000 jobs.
Meanwhile, the unemployment rate edged down to 4.1%, due in part to a modest decline in labor force participation.
Source: US Department of Labor Source: US Department of Labor
EMPLOYMENT
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In
T
h
o
u
s
a
n
d
s
(
0
0
0
'
s
)
Job openings totaled 7.359 million in June, according to the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), while
May’s figure was revised down to 7.537 million. Transportation, warehousing, and utilities posted the largest increase in openings
(+97,000), followed by the federal government (+39,000).In contrast, openings declined in wholesale trade (-74,000) and nondurable-goods
manufacturing (-55,000). The broadly stable levels of hiring, quits, and layoffs point to a labor market that is cooling gradually rather than
deteriorating sharply, even as the July payroll report signaled unexpected weakness.
Source: US Department of Labor
JOB OPENINGS & LABOR TURNOVER SURVEY
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Source: Bloomberg Indices Source: Bloomberg Indices
ENERGY MARKETS
West Texas Intermediate (WTI) crude settled at $84.67 a barrel at the end of July, while Brent finished at $90.12, with both benchmarks
posting their strongest monthly gains since March: WTI rose 21%and Brent rose 24%. The advance reflected renewed hostilities between
the United States and Iran, which intermittently disrupted tanker traffic through the Strait of Hormuz, a corridor that historically traffics
roughly a fifth of global crude and natural gas supply. Prices retreated from their intramonth highs late in July as diplomatic overtures
raised hopes for a durable ceasefire, though the stop-and-start nature of the conflict left a persistent risk premium embedded in oil
markets. AAA’s national average for regular gasoline held at $4.09 a gallon to end July.
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($
)
Pe
r
G
a
l
l
o
n
40
60
80
100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot
Cushing)
Dated Brent (Global Spot)
Pr
i
c
e
Pe
r
B
a
r
r
e
l
(
W
T
I
S
p
o
t
)
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0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YO
Y
(
%
)
C
h
a
n
g
e
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY %
Change
YO
Y
(
%
)
C
h
a
n
g
e
Inflation decelerated sharply in June, with the Consumer Price Index (CPI) falling 0.4%on the month—its largest decline since the onset of
the pandemic in 2020—and bringing the annual rate down to 3.5% from 4.2%in May. Core CPI (excluding food and energy) was flat on the
month and rose 2.6% year over year, both coming in softer than expected after energy-driven pressures pushed inflation to a three-year
high earlier in the quarter. The CPI report suggests at least a near-term reprieve in inflation. The Personal Consumption Expenditures Index
(PCE), the Fed's preferred gauge, told a similar story: headline PCE fell 0.1% and decelerated to 3.7% annually, while core PCE rose 0.1%
and cooled to 3.3% from a year earlier. Both measures remain well above the central bank's longstanding target, and officials have
signaled they are unwilling to declare victory given how quickly the disinflationary trend could reverse if oil prices resume climbing.
Source: US Department of Labor Source: US Department of Commerce
INFLATION
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0.0%
5.0%
10.0%
15.0%
20.0%
Retail Sales YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
Households grew less optimistic in July even as they kept spending; the Conference Board's Consumer Confidence Index retreated 1.4
points to 90.8, extending a downward trajectory that has persisted since late 2021 amid elevated grocery and fuel costs. Retail sales,by
contrast, advanced 0.2%in June and 6.7% year over year, a fifth consecutive month of growth even as gas station receipts fell 5.3%
alongside softer pump prices. The divergence between softening sentiment and resilient spending illustrates a familiar pattern this cycle,
with consumers still opening their wallets despite voicing unease about the broader economy. A labor market that remains robust, even as
hiring decelerates, appears to be underpinning this spending for now.
0
20
40
60
80
100
120
140
160
In
d
e
x
L
e
v
e
l
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board
All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)
CONSUMER
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-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Leading Economic Indicators (LEI)
Recession
YO
Y
(%
)
C
h
a
n
g
e
-1.00
-0.75
-0.50
-0.25
0.00
0.25
0.50
0.75
1.00
Chicago Fed National Activity Index (CFNAI)
Recession
3
M
o
n
t
h
A
v
e
r
a
g
e
Data from the Federal Reserve Bank of Chicago showed the National Activity Index (CFNAI) improving to -0.02 in June from -0.19 in May,
while its smoother three-month moving average rose to -0.05. Both measures remain well above the -0.70 level that has historically
preceded recessions, indicating the economy is still expanding, albeit below trend, rather than contracting. The Conference Board’s Leading
Economic Index (LEI) painted a more cautious picture, falling 0.2%in June and erasing some of the gains seen earlier in the spring. Weak
consumer expectations and a decline in building permits were the main drags, partly offset by the yield spread’s contribution.
Source: The Conference Board Source: Federal Reserve Bank of Chicago
LEADING INDICATORS OF ECONOMIC ACTIVITY
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0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In
T
h
o
u
s
a
n
d
s
o
f
U
n
i
t
s
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Home price growth showed further signs of firming,as the S&P CoreLogic Case-Shiller 20-City Composite rose 1.6% year over year in May,
marking its second consecutive month of acceleration after an upwardly revised 1.2% increase in April. Housing starts also rebounded in
June, rising to a seasonally adjusted annual rate of 1.427 million, a 19%increase from an upwardly revised 1.199 million in May. The gain
was driven primarily by multifamily construction, with starts surging more than 76%month over month to 532,000 units, while single-family
starts edged down slightly to 895,000. Freddie Mac’s average 30-year fixed mortgage rate rose to 6.49%in late June from 6.44%in May,
continuing to weigh on affordability for prospective buyers.
Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YO
Y
(
%
)
C
h
a
n
g
e
HOUSING
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40
45
50
55
60
65
70
Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services
EXPANDING
CONTRACTING
The Institute for Supply Management’s Manufacturing PMI rose to 55.6 in July, while the Services PMI registered 54.1, marking the seventh
consecutive month in which both surveys signaled expansion. Readings above 50 indicate expansion, while those below 50 indicate
contraction, leaving both headline indexes firmly in expansionary territory. However, elevated prices-paid components in both surveys
indicate that input-cost pressures remain persistent, despite broader cooling in headline inflation measures.
Source: Institute for Supply Management
PURCHASING MANAGERS INDEX (PMI)
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Components of GDP 9/25 12/25 3/26 6/26
2.3% 1.3% 0.4% 2.1%
0.0% 0.4% 1.4% 0.5%
1.6% -0.2% -0.4% -1.0%
0.2% -1.2% 0.6% -0.3%
0.2% 0.2% 0.2% 0.1%
4.4% 0.5% 2.1% 1.5%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce
Growth downshifted in the second quarter, with the U.S. economy expanding at a 1.5% annualized rate, decelerating from the first quarter's
2.1% pace and short of the 2.1% economists had anticipated, according to the Bureau of Economic Analysis's advance estimate. Consumer
spending and business investment contributed positively, while a pullback in government outlays and rising imports, which subtract from
growth, weighed on the result. The deceleration reflects lingering tariff related cost pressures and the energy disruptions tied to the
conflict in the Middle East.As this is the advance estimate, the Bureau of Economic Analysis will publish two additional revisions as more
complete data arrives.
GROSS DOMESTIC PRODUCT (GDP)
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Source: Federal Reserve Source: Bloomberg
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In
$
m
i
l
l
i
o
n
s
The Federal Reserve held its benchmark rate at 3.50%to 3.75% following the July 28 to 29 meeting of the Federal Open Market Committee,
with minutes from the prior June gathering revealing officials had grown increasingly split over how much weight to place on tariff driven
costs versus signs of labor market softening. Chair Kevin Warsh, sworn in earlier this year, has continued winding down forward guidance
from post meeting communications, arguing markets should focus on incoming data rather than anticipated rhetoric. The balance sheet
continued its gradual runoff without any announced change to the pace of reduction. Minutes also noted that the conflict in the Middle East
has complicated officials' read on how persistent current inflation will prove.
FEDERAL RESERVE
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yi
e
l
d
(
%
)
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Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yi
e
l
d
(
%
)
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
US Treasury Yield Curve
Jul-26
Apr-26
Jul-25
Yi
e
l
d
(
%
)
A positively sloped Treasury curve persisted across its full range through the end of July, with the three-month bill yielding roughly 3.76%,
the two-year note 4.29%, the five-year 4.45%, and the ten-year note 4.74%. The gap between the three-month bill and the ten-year note
widened to 97 basis points, while the more closely watched two-year-to-ten-year spread widened to 45 basis points after a 24 basis points
intramonth low in June. That divergence suggests recent yield increases have been concentrated in the shorter and intermediate maturities
rather than lifting the entire curve uniformly. The overall shape continues to imply that markets see a near-term recession as unlikely, even
as uncertainty about the Federal Reserve’s next move has increased since the July meeting.
BOND YIELDS
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ACCOUNT PROFILE
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OBJECTIVES
Investment Objectives
The City of Cupertino's investment objectives, in order of priority, are to provide safety to
ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash
needs and a market rate of return consistent with the investment program.
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market
cycle that is equal to or above the return on the benchmark index.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed incomes
securities consistent with the investment policy and California Government Code.
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of July 31, 2026
Rules Name Limit Actual Compliance
Status Notes
AGENCY MORTGAGE SECURITIES
Max % (MV)100.0 11.5 Compliant
Max % Issuer (MV; Agencies & Agency CMOs)25.0 11.5 Compliant
Max Maturity (Years)5.0 4.5 Compliant
ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS)20.0 7.9 Compliant
Max % Issuer (MV)5.0 1.6 Compliant
Max Maturity (Years)5 4 Compliant
Min Rating (AA- by 1)0.0 0.0 Compliant
BANKERS' ACCEPTANCES
Max % (MV)40.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Days)180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant
CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NON-
NEGOTIABLE CD/TD)
Max % (MV; FDIC & Collateralized CD/TD)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
COMMERCIAL PAPER
Max % (MV)25.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Days)270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1)0.0 0.0 Compliant
The Statement of Compliance reflects Chandler's assessment of compliance with the applicable investment policy for the assets Chandler directly manages. The report may also present assets reported to Chandler
by clients, custodians, or other third parties. Chandler includes those assets in the assessment but has no discretionary authority over them, does not independently verify the information provided, and assumes no
responsibility for the accuracy or completeness of that information. Questions regarding this report should be directed to the designated investment professional.17 51
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of July 31, 2026
Rules Name Limit Actual Compliance
Status Notes
CORPORATE MEDIUM TERM NOTES
Max % (MV)30.0 26.8 Compliant
Max % Issuer (MV)5.0 1.3 Compliant
Max Maturity (Years)5 4 Compliant
Min Rating (A- by 1)0.0 0.0 Compliant
FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV; FDIC & Collateralized CD/TD)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
FEDERAL AGENCIES
Max % (MV)100.0 3.5 Compliant
Max % Issuer (MV; Agencies & Agency CMOs)25.0 11.5 Compliant
Max Callables (MV)20.0 0.0 Compliant
Max Maturity (Years)5 1 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV)75.0 0.0 Compliant
MONEY MARKET MUTUAL FUNDS
Max % (MV)20.0 0.7 Compliant
Min Rating (AAA by 2)0.0 0.0 Compliant
MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max % (MV)20.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
Min Rating (AA- by 1)0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV)30.0 0.9 Compliant
Max % Issuer (MV)5.0 0.9 Compliant
Max Maturity (Years)5 3 Compliant
The Statement of Compliance reflects Chandler's assessment of compliance with the applicable investment policy for the assets Chandler directly manages. The report may also present assets reported to Chandler
by clients, custodians, or other third parties. Chandler includes those assets in the assessment but has no discretionary authority over them, does not independently verify the information provided, and assumes no
responsibility for the accuracy or completeness of that information. Questions regarding this report should be directed to the designated investment professional.18 52
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of July 31, 2026
Rules Name Limit Actual Compliance
Status Notes
Min Rating (A- by 1)0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A- by 1)0.0 0.0 Compliant
NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit)0.0 0.0 Compliant
REPURCHASE AGREEMENTS
Max % (MV)10.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)1.0 0.0 Compliant
SUPRANATIONAL OBLIGATIONS
Max % (MV)30.0 1.7 Compliant
Max % Issuer (MV)10.0 1.7 Compliant
Max Maturity (Years)5 3 Compliant
Min Rating (AA- by 1)0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV)100.0 47.2 Compliant
Max Maturity (Years)5 4 Compliant
The Statement of Compliance reflects Chandler's assessment of compliance with the applicable investment policy for the assets Chandler directly manages. The report may also present assets reported to Chandler
by clients, custodians, or other third parties. Chandler includes those assets in the assessment but has no discretionary authority over them, does not independently verify the information provided, and assumes no
responsibility for the accuracy or completeness of that information. Questions regarding this report should be directed to the designated investment professional.19 53
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PORTFOLIO SUMMARY
City of Cupertino | Account #10659 | As of July 31, 2026
Portfolio Characteristics Account Summary Top Issuers
Average Modified Duration 2.46
Average Coupon 3.83%
Average Purchase YTM 4.12%
Average Market YTM 4.45%
Average Credit Quality*AA+
Average Final Maturity 2.85
Average Life 2.72
End Values as of
06/30/2026
End Values as of
07/31/2026
Market Value 206,884,323.76 206,702,630.60
Accrued Interest 1,712,686.71 1,715,001.08
Total Market Value 208,597,010.47 208,417,631.68
Income Earned 757,355.19 721,527.44
Cont/WD 0.00 0.00
Par 209,750,558.47 210,394,588.49
Book Value 208,055,759.90 208,751,856.94
Cost Value 207,356,230.92 207,994,491.53
United States 47.12%
Federal Home Loan Mortgage Corp 11.53%
Farm Credit System 2.53%
International Bank for Recon and Dev 1.65%
Chase Issuance Trust 1.59%
Amazon.com, Inc.1.32%
Guardian Life Global Funding 1.28%
The Home Depot, Inc.1.26%
Sector Allocation Maturity Distribution Credit Quality*
Performance Review
Total Rate of Return**1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception
(02/01/19)
City of Cupertino (0.08%)0.12%0.59%3.05%3.94%4.55%1.80%--2.29%
Benchmark Return (0.04%)0.05%0.39%2.81%3.51%4.12%1.46%--2.03%
*The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
**Periods over 1 year are annualized.
Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index
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ISSUERS
City of Cupertino | Account #10659 | As of July 31, 2026
Issuer Investment Type % Portfolio
United States US Treasury 47.12%
Federal Home Loan Mortgage Corp Agency CMBS 11.53%
Farm Credit System Agency 2.53%
International Bank for Recon and Dev Supras 1.65%
Chase Issuance Trust ABS 1.59%
Amazon.com, Inc.Corporate 1.32%
Guardian Life Global Funding Corporate 1.28%
The Home Depot, Inc.Corporate 1.26%
Toyota Motor Corporation Corporate 1.21%
New York Life Insurance Company Corporate 1.14%
Meta Platforms, Inc.Corporate 1.14%
Deere & Company Corporate 0.98%
Northwestern Mutual Global Funding Corporate 0.96%
UnitedHealth Group Incorporated Corporate 0.92%
Federal Home Loan Banks Agency 0.91%
Simon Property Group, Inc.Corporate 0.89%
Chubb Limited Corporate 0.84%
Mastercard Incorporated Corporate 0.84%
State of California Muni Bonds 0.84%
American Honda Finance Corporation Corporate 0.83%
Caterpillar Inc.Corporate 0.83%
Prudential Financial, Inc.Corporate 0.83%
The Goldman Sachs Group, Inc.Corporate 0.81%
Bank of America Credit Card Trust ABS 0.79%
Toyota Auto Receivables Owner Trust ABS 0.79%
Mercedes-Benz Auto Lease Trust ABS 0.78%
Berkshire Hathaway Inc.Corporate 0.77%
PepsiCo, Inc.Corporate 0.73%
Citigroup Inc.ABS 0.72%
Bank of America Corporation Corporate 0.72%
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ISSUERS
City of Cupertino | Account #10659 | As of July 31, 2026
Issuer Investment Type % Portfolio
JPMorgan Chase & Co.Corporate 0.72%
The Progressive Corporation Corporate 0.72%
Alphabet Inc.Corporate 0.70%
Morgan Stanley Corporate 0.70%
Realty Income Corporation Corporate 0.69%
American Express Credit Master Trust ABS 0.69%
Marsh & McLennan Companies, Inc.Corporate 0.67%
WF Card Issuance Trust ABS 0.66%
Wells Fargo & Company Money Mkt Fd 0.66%
Visa Inc.Corporate 0.64%
Met Tower Global Funding Corporate 0.62%
Hyundai Motor Company Corporate 0.53%
Cargill, Incorporated Corporate 0.52%
BMW Vehicle Lease Trust ABS 0.51%
NVIDIA Corporation Corporate 0.50%
Nat Rural Util Coop Fin Corp Corporate 0.49%
Massachusetts Mutual Life Insurance Corporate 0.48%
Pacific Life Global Funding II Corporate 0.47%
Hyundai Auto Lease Sec Trust ABS 0.33%
Honda Auto Receivables Owner Trust ABS 0.29%
GM Financial Securitized Term ABS 0.28%
BMW Vehicle Owner Trust ABS 0.19%
Mercedes-Benz Auto Receivables Trust ABS 0.19%
John Deere Owner Trust ABS 0.15%
WC MMF Sweep Cash 0.03%
Cash Cash 0.00%
TOTAL 100.00%
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PORTFOLIO HOLDINGS
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
44934FAD7 HALST 2024-B A3 5.41 05/17/2027 57,070.28 05/14/2024
5.41%
57,068.69
57,069.86
100.04
4.14%
57,094.99
137.22
0.03%
25.13
NA/AAA
AAA
0.79
0.03
89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 367,312.94 11/21/2023
5.65%
365,820.74
366,732.23
100.28
4.16%
368,355.75
842.37
0.18%
1,623.52
NA/AAA
AAA
1.71
0.27
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 298,087.69 --
5.64%
298,825.57
298,307.00
100.59
4.41%
299,851.48
469.49
0.15%
1,544.48
Aaa/NA
AAA
1.89
0.39
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 1,050,000.00 10/08/2025
4.32%
1,049,997.06
1,049,997.85
99.64
4.42%
1,046,227.35
694.75
0.51%
(3,770.50)
NA/AAA
AAA
2.15
0.87
58769FAC9 MBART 2023-2 A3 5.95
11/15/2028 389,873.19 11/29/2023
3.88%
398,127.54
392,551.25
100.72
4.21%
392,692.37
1,031.00
0.19%
141.12
NA/AAA
AAA
2.29
0.40
47800RAD5 JDOT 2024 A3 4.96 11/15/2028 312,523.06 03/25/2024
5.13%
312,376.56
312,450.68
100.40
4.36%
313,783.15
688.94
0.15%
1,332.47
Aaa/NA
AAA
2.29
0.61
05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 850,000.00 01/24/2024
4.58%
858,798.83
850,918.45
100.27
4.05%
852,308.60
1,881.33
0.41%
1,390.15
Aaa/NA
AAA
0.30
0.28
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 304,312.22 05/14/2024
5.27%
304,275.25
304,293.29
100.56
4.25%
306,030.37
579.12
0.15%
1,737.08
NA/AAA
AAA
2.31
0.52
448970AD5 HALST 2026-A A3 3.97
12/15/2028 635,000.00 01/12/2026
3.98%
634,906.91
634,923.79
99.29
4.51%
630,477.53
1,120.42
0.31%
(4,446.26)
NA/AAA
AAA
2.38
1.39
36268GAD7 GMCAR 2024-1 A3 4.85
12/18/2028 586,976.99 --
4.97%
586,046.19
586,498.42
100.26
4.25%
588,525.43
1,186.18
0.28%
2,027.02
Aaa/NA
AAA
2.38
0.41
161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024
4.61%
1,689,742.61
1,689,872.30
100.20
4.19%
1,693,369.86
3,455.11
0.82%
3,497.56
NA/AAA
AAA
2.46
0.44
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 395,466.55 06/04/2024
5.18%
395,406.48
395,433.74
100.50
4.29%
397,441.12
341.42
0.19%
2,007.37
Aaa/AAA
NA
2.57
0.53
58770XAD5 MBALT 2025-B A3 3.88
04/16/2029 1,045,000.00 10/16/2025
4.57%
1,044,828.52
1,044,866.67
99.39
4.38%
1,038,580.57
1,802.04
0.50%
(6,286.11)
NA/AAA
AAA
2.71
1.30
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 785,000.00 06/06/2024
4.93%
784,955.96
784,975.14
100.58
4.22%
789,520.03
1,720.02
0.38%
4,544.89
Aaa/AAA
NA
2.79
0.75
58770YAD3 MBALT 2026-A A3 3.93
01/15/2030 570,000.00 01/13/2026
3.97%
569,886.97
569,901.89
99.13
4.49%
565,068.93
995.60
0.27%
(4,832.96)
Aaa/NA
AAA
3.46
1.64
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 1,420,000.00 05/06/2025
4.28%
1,419,974.30
1,419,980.66
99.81
4.44%
1,417,265.08
2,701.16
0.69%
(2,715.58)
NA/AAA
AAA
3.71
1.60
24 58
CC 09-01-2026 Searchable Packet
62 of 266
HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
92970QAJ4 WFCIT 2025-1 A 4.34 05/15/2030 1,365,000.00 06/03/2025
4.33%
1,364,977.34
1,364,982.59
99.86
4.46%
1,363,154.52
2,632.93
0.66%
(1,828.07)
NA/AAA
AAA
3.79
1.68
17305EHA6 CCCIT 2025-A1 A1 4.3 06/21/2030 1,500,000.00 10/09/2025
3.90%
1,515,000.00
1,510,507.61
99.61
4.52%
1,494,148.50
7,166.67
0.72%
(16,359.11)
Aaa/AAA
NA
3.89
1.78
89240QAD7 TAOT 2026-B A3 4.13 12/16/2030 760,000.00 04/14/2026
4.27%
759,839.72
759,849.34
99.29
4.56%
754,569.04
1,395.02
0.37%
(5,280.30)
Aaa/AAA
NA
4.38
1.81
89231DAD7 TAOT 2026-C A3 4.51 03/17/2031 515,000.00 07/14/2026
4.80%
514,925.12
514,925.60
99.84
4.62%
514,187.33
645.18
0.25%
(738.27)
NA/AAA
AAA
4.63
2.25
161571JA3 CHAIT 2026-1 A 4.4 05/15/2029 1,595,000.00 05/21/2026
4.45%
1,594,622.62
1,594,645.27
99.69
4.56%
1,589,986.92
3,119.11
0.77%
(4,658.35)
NA/AAA
AAA
2.79
2.56
16,520,402.98 99.89 16,472,638.90 7.97%2.88
Total ABS 16,491,622.93 4.49%16,503,683.63 4.39%34,605.10 (31,044.73)1.25
AGENCY
3130B0TY5 FEDERAL HOME LOAN BANKS 4.75
04/09/2027 1,875,000.00 04/10/2024
4.85%
1,870,050.00
1,873,863.27
100.51
3.98%
1,884,511.88
27,708.33
0.91%
10,648.61
Aa1/AA+
AA+
0.69
0.66
3133ERDS7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 05/06/2027 2,400,000.00 06/20/2024
4.55%
2,412,552.00
2,403,326.46
100.46
4.12%
2,411,011.20
26,916.67
1.17%
7,684.74
Aa1/AA+
AA+
0.76
0.73
3133EPC60 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.625 11/15/2027 2,800,000.00 11/09/2023
4.73%
2,789,612.00
2,796,651.10
100.52
4.20%
2,814,498.40
27,338.89
1.36%
17,847.30
Aa1/AA+
AA+
1.29
1.22
7,072,214.00 100.50 7,110,021.48 3.44%0.95
Total Agency 7,075,000.00 4.70%7,073,840.82 4.12%81,963.89 36,180.65 0.91
AGENCY CMBS
3137BSP72 FHMS K-058 A2 2.653 08/25/2026 239,025.83 11/12/2021
1.36%
252,797.82
239,025.83
99.74
3.74%
238,406.03
528.45
0.12%
(619.79)
Aa1/AA+
AAA
0.07
0.07
3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 1,926,986.90 07/01/2024
4.86%
1,843,509.23
1,882,759.29
98.14
4.56%
1,891,052.45
6,055.56
0.91%
8,293.16
Aa1/AAA
AA+
2.40
2.14
3137FL6P4 FHMS K-089 A2 3.563 01/25/2029 1,288,000.00 07/03/2024
4.70%
1,228,178.44
1,255,695.63
97.54
4.57%
1,256,295.88
3,824.29
0.61%
600.25
Aa1/AA+
AA+
2.49
2.29
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 2,000,000.00 07/03/2024
4.74%
1,801,718.75
1,892,925.70
94.72
4.57%
1,894,420.00
3,766.67
0.92%
1,494.30
Aa1/AA+
AAA
2.49
2.28
25 59
CC 09-01-2026 Searchable Packet
63 of 266
HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 2,550,000.00 07/17/2024
4.50%
2,465,830.08
2,504,183.37
97.86
4.57%
2,495,379.00
7,841.25
1.21%
(8,804.37)
Aaa/AA+
AA+
2.49
2.25
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 2,500,000.00 03/20/2025
4.25%
2,431,738.28
2,455,204.73
97.31
4.58%
2,432,800.00
7,302.08
1.18%
(22,404.73)
Aa1/AAA
AA+
2.65
2.37
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 1,955,381.14 09/19/2024
3.82%
1,886,484.51
1,914,207.20
95.98
4.58%
1,876,682.92
4,859.12
0.91%
(37,524.29)
Aa1/AA+
AAA
2.82
2.46
3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 2,200,000.00 07/17/2024
4.47%
2,039,382.82
2,106,554.93
95.22
4.60%
2,094,833.40
5,105.83
1.01%
(11,721.53)
Aa1/AA+
AAA
2.90
2.61
3137FPHK4 FHMS K-098 A2 2.425 08/25/2029 1,600,000.00 09/03/2024
4.00%
1,488,375.00
1,531,653.07
93.93
4.61%
1,502,899.20
3,233.33
0.73%
(28,753.87)
Aa1/AA+
AAA
3.07
2.79
3137FPJG1 FHMS K-099 A2 2.595 09/25/2029 1,500,000.00 06/05/2025
4.21%
1,407,011.72
1,432,125.78
94.25
4.61%
1,413,685.50
3,243.75
0.68%
(18,440.28)
Aa1/AA+
AAA
3.15
2.86
3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 2,000,000.00 06/06/2025
4.37%
1,810,078.13
1,857,530.08
91.87
4.63%
1,837,318.00
3,448.33
0.89%
(20,212.08)
Aa1/AA+
AAA
3.49
3.25
3137FTZQ3 FHMS K-110 A2 1.477 04/25/2030 1,500,000.00 09/03/2025
3.96%
1,348,652.34
1,378,358.63
89.68
4.64%
1,345,212.00
1,846.25
0.65%
(33,146.63)
Aa1/AA+
AAA
3.73
3.39
3137FWG79 FHMS K-115 A2 1.383 06/25/2030 2,000,000.00 12/10/2025
3.99%
1,787,343.75
1,817,238.34
88.57
4.65%
1,771,310.00
2,305.00
0.86%
(45,928.34)
Aa1/AA+
AAA
3.90
3.66
3137FX3Q9 FHMS K-117 A2 1.406 08/25/2030 1,000,000.00 06/03/2026
4.46%
885,820.31
889,890.08
88.28
4.65%
882,786.00
1,171.67
0.43%
(7,104.08)
Aa1/AA+
AAA
4.07
3.79
3137FXZ35 FHMS K-127 A2 2.108 01/25/2031 1,000,000.00 02/03/2026
4.11%
910,937.50
919,694.48
89.75
4.68%
897,535.00
1,756.67
0.43%
(22,159.48)
Aa1/AA+
AAA
4.49
4.14
23,587,858.68 94.46 23,830,615.38 11.53%3.00
Total Agency CMBS 25,259,393.87 4.30%24,077,047.14 4.59%56,288.24 (246,431.77)2.73
CASH
992995944 WC MMF SWEEP 53,331.28 --
2.85%
53,331.28
53,331.28
1.00
1.80%
53,331.28
0.00
0.03%
0.00
NA/NA
NA
0.00
0.00
CCYUSD Receivable 2,209.49 --2,209.49
2,209.49
1.00 2,209.49
0.00
0.00%
0.00
Aaa/AAA
AAA
0.00
0.00
55,540.77 1.00 55,540.77 0.03%0.00
Total Cash 55,540.77 2.85%55,540.77 1.80%0.00 0.00 0.00
26 60
CC 09-01-2026 Searchable Packet
64 of 266
HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CORPORATE
084664CZ2 BERKSHIRE HATHAWAY FINANCE
CORP 2.3 03/15/2027 1,615,000.00 03/07/2022
2.30%
1,614,693.15
1,614,962.02
98.92
4.10%
1,597,480.48
14,032.56
0.77%
(17,481.54)
Aa2/AA
A+
0.62
0.60
58989V2M5 MET TOWER GLOBAL FUNDING
4.0 01/14/2029 1,310,000.00 01/07/2026
4.05%
1,308,310.10
1,308,616.93
98.31
4.74%
1,287,888.51
2,474.44
0.62%
(20,728.42)
Aa3/AA-
AA-
2.46
2.30
743315AV5 PROGRESSIVE CORP 4.0
03/01/2029 1,500,000.00 07/16/2024
4.72%
1,455,495.00
1,475,137.31
98.54
4.61%
1,478,089.50
25,000.00
0.72%
2,952.19
A2/A
A
2.58
2.38
38151LAJ9 GOLDMAN SACHS BANK USA
4.656 06/03/2029 675,000.00 05/27/2026
4.57%
675,000.00
675,000.00
99.73
4.67%
673,202.48
5,063.40
0.33%
(1,797.53)
A1/A+
AA-
2.84
1.72
64952WFG3 NEW YORK LIFE GLOBAL FUNDING
5.0 06/06/2029 1,000,000.00 07/01/2024
5.12%
994,880.00
997,041.78
100.65
4.75%
1,006,539.00
7,638.89
0.49%
9,497.22
Aa1/AA+
AAA
2.85
2.60
437076BY7 HOME DEPOT INC 2.95
06/15/2029 1,663,000.00 09/17/2024
3.93%
1,593,203.89
1,620,702.99
95.74
4.55%
1,592,149.55
6,268.59
0.77%
(28,553.44)
A2/A
A
2.87
2.70
44891AEN3 HYUNDAI CAPITAL AMERICA 4.75
06/18/2029 1,100,000.00 06/15/2026
4.79%
1,098,909.75
1,098,953.52
99.32
5.01%
1,092,470.50
6,240.97
0.53%
(6,483.02)
A3/A-
A-
2.88
2.64
437076DC3 HOME DEPOT INC 4.75
06/25/2029 1,000,000.00 07/01/2024
4.93%
992,260.00
995,493.86
100.49
4.57%
1,004,897.00
4,750.00
0.49%
9,403.14
A2/A
A
2.90
2.59
756109CB8 REALTY INCOME CORP 4.0
07/15/2029 1,463,000.00 08/08/2024
4.69%
1,419,212.41
1,436,766.35
98.01
4.73%
1,433,905.32
2,600.89
0.69%
(2,861.03)
A3/A-
NA
2.96
2.74
713448FX1 PEPSICO INC 4.5 07/17/2029 1,500,000.00 07/15/2024
4.53%
1,497,675.00
1,498,623.59
99.97
4.51%
1,499,563.50
2,625.00
0.73%
939.91
A1/A+
NA
2.96
2.73
46647PAV8 JPMORGAN CHASE & CO 4.203
07/23/2029 1,500,000.00 09/17/2024
4.27%
1,496,610.00
1,498,256.71
98.95
4.94%
1,484,223.00
1,401.00
0.72%
(14,033.71)
A1/A
AA-
2.98
1.87
06051GHM4 BANK OF AMERICA CORP 4.271
07/23/2029 1,500,000.00 09/17/2024
4.29%
1,498,710.00
1,499,336.62
99.07
4.95%
1,486,105.50
1,423.67
0.72%
(13,231.12)
A1/A-
AA-
2.98
1.87
30303M8S4 META PLATFORMS INC 4.3
08/15/2029 912,000.00 08/12/2024
4.33%
910,584.09
911,139.29
99.04
4.64%
903,206.50
18,082.93
0.44%
(7,932.79)
Aa3/AA-
NA
3.04
2.75
171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 1,750,000.00 --
4.44%
1,765,746.34
1,759,694.98
99.79
4.72%
1,746,305.75
37,522.92
0.84%
(13,389.23)
A2/A
A
3.04
2.74
91324PDS8 UNITEDHEALTH GROUP INC 2.875
08/15/2029 2,000,000.00 09/17/2024
3.94%
1,906,080.00
1,941,824.11
94.92
4.69%
1,898,416.00
26,513.89
0.92%
(43,408.11)
A2/A+
A
3.04
2.82
02665WFQ9 AMERICAN HONDA FINANCE
CORP 4.4 09/05/2029 1,750,000.00 10/02/2024
4.29%
1,758,102.50
1,755,096.73
98.56
4.91%
1,724,759.75
31,227.78
0.83%
(30,336.98)
A3/BBB+
A-
3.10
2.80
27 61
CC 09-01-2026 Searchable Packet
65 of 266
HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING
4.179 09/26/2029 1,205,000.00 09/23/2024
4.18%
1,205,000.00
1,205,000.00
98.12
4.83%
1,182,358.05
17,485.05
0.57%
(22,641.95)
Aa1/AA+
NA
3.16
2.87
61748UAK8 MORGAN STANLEY 4.133
10/18/2029 1,470,000.00 10/17/2025
4.25%
1,470,184.60
1,470,136.76
98.45
4.79%
1,447,194.42
17,382.71
0.70%
(22,942.34)
A1/A-
A+
3.22
2.06
38141GD27 GOLDMAN SACHS GROUP INC
4.153 10/21/2029 1,025,000.00 10/14/2025
4.37%
1,025,000.00
1,025,000.00
98.41
4.81%
1,008,729.15
11,824.51
0.49%
(16,270.85)
A2/BBB+
A
3.22
2.07
14913UAU4 CATERPILLAR FINANCIAL SERVICES
CORP 4.7 11/15/2029 1,200,000.00 11/14/2024
4.74%
1,198,092.00
1,198,744.02
100.28
4.60%
1,203,405.60
11,906.67
0.58%
4,661.58
A1/A
A+
3.29
2.98
64952WFK4 NEW YORK LIFE GLOBAL FUNDING
4.6 12/05/2029 1,365,000.00 12/02/2024
4.61%
1,364,221.95
1,364,479.31
99.52
4.76%
1,358,449.37
9,767.33
0.66%
(6,029.95)
Aa1/AA+
AAA
3.35
3.04
89236TNA9 TOYOTA MOTOR CREDIT CORP
4.95 01/09/2030 1,445,000.00 01/06/2025
5.00%
1,441,907.70
1,442,871.29
100.42
4.81%
1,451,128.25
4,371.13
0.70%
8,256.95
A1/A+
A+
3.44
3.12
63743HFX5
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
1,000,000.00 02/05/2025
4.88%
1,002,873.61
1,002,009.13
100.31
4.85%
1,003,124.00
23,925.00
0.49%
1,114.87
A2/NA
A
3.52
3.05
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 1,400,000.00 03/11/2025
4.69%
1,397,340.00
1,398,072.08
99.28
4.87%
1,389,929.80
24,593.33
0.67%
(8,142.28)
A3/A-
A-
3.62
3.23
57629TBX4 MASSMUTUAL GLOBAL FUNDING
II 4.55 05/07/2030 1,000,000.00 05/01/2025
4.58%
998,670.00
998,998.49
98.60
4.96%
985,985.00
10,616.67
0.48%
(13,013.49)
Aa3/AA+
AA+
3.77
3.38
66815L2W8 NORTHWESTERN MUTUAL
GLOBAL FUNDING 4.6 06/03/2030 1,000,000.00 06/12/2025
4.51%
1,004,040.00
1,003,118.99
98.86
4.93%
988,623.00
7,411.11
0.48%
(14,495.99)
Aa1/AA+
AAA
3.84
3.45
828807DK0 SIMON PROPERTY GROUP LP 2.65
07/15/2030 2,000,000.00 08/19/2025
4.32%
1,853,380.00
1,881,721.07
92.17
4.85%
1,843,436.00
2,355.56
0.89%
(38,285.07)
A3/A
NA
3.96
3.67
40139LBN2 GUARDIAN LIFE GLOBAL FUNDING
4.327 10/06/2030 1,500,000.00 09/30/2025
4.33%
1,500,000.00
1,500,000.00
97.49
5.00%
1,462,306.50
20,733.54
0.71%
(37,693.50)
Aa1/AA+
NA
4.18
3.71
24422EYF0 JOHN DEERE CAPITAL CORP 4.375
10/15/2030 1,000,000.00 11/04/2025
4.22%
1,006,920.00
1,005,888.71
98.54
4.76%
985,404.00
12,881.94
0.48%
(20,484.71)
A1/A
A+
4.21
3.74
141781CF9 CARGILL INC 4.125 10/23/2030 1,100,000.00 10/20/2025
4.14%
1,099,171.70
1,099,299.62
97.12
4.89%
1,068,337.60
12,352.08
0.52%
(30,962.02)
A2/A
NA
4.23
3.78
30303MAB8 META PLATFORMS INC 4.2
11/15/2030 1,500,000.00 11/13/2025
4.16%
1,502,895.00
1,502,480.04
96.92
5.01%
1,453,843.50
13,300.00
0.70%
(48,636.54)
Aa3/AA-
NA
4.29
3.83
74153WCZ0 PRICOA GLOBAL FUNDING I 4.35
11/25/2030 1,750,000.00 12/08/2025
4.36%
1,749,440.00
1,749,512.63
97.55
4.99%
1,707,116.25
13,956.25
0.83%
(42,396.38)
Aa3/NA
AA-
4.32
3.84
28 62
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
89236TPH2 TOYOTA MOTOR CREDIT CORP 4.2
01/10/2031 1,080,000.00 01/07/2026
4.21%
1,079,665.20
1,079,702.09
97.42
4.85%
1,052,088.48
2,646.00
0.51%
(27,613.61)
A1/A+
A+
4.45
3.98
66815L2Z1 NORTHWESTERN MUTUAL
GLOBAL FUNDING 4.3 01/13/2031 1,020,000.00 01/06/2026
4.30%
1,019,908.20
1,019,918.25
97.62
4.90%
995,680.14
2,193.00
0.48%
(24,238.11)
Aa1/AA+
AAA
4.45
3.98
6944PL3M9 PACIFIC LIFE GLOBAL FUNDING II
4.375 02/03/2031 1,000,000.00 01/29/2026
4.34%
1,001,380.00
1,001,244.72
97.83
4.92%
978,285.00
21,631.94
0.47%
(22,959.72)
Aa3/AA-
AA-
4.51
4.03
92826CAZ5 VISA INC 4.1 02/12/2031 1,345,000.00 02/03/2026
4.13%
1,343,197.70
1,343,365.49
98.08
4.58%
1,319,124.89
25,887.51
0.64%
(24,240.60)
Aa3/AA-
NA
4.54
4.00
02079KBK2 ALPHABET INC 4.1 02/15/2031 1,500,000.00 02/12/2026
4.10%
1,500,087.78
1,500,079.23
96.94
4.86%
1,454,100.00
28,700.00
0.70%
(45,979.23)
Aa2/AA+
NA
4.54
4.00
24422EYL7 JOHN DEERE CAPITAL CORP 4.2
03/10/2031 1,060,000.00 03/05/2026
4.20%
1,059,766.80
1,059,785.19
97.46
4.82%
1,033,051.62
17,437.00
0.50%
(26,733.57)
A1/A
A+
4.61
4.06
14913V2D9 CATERPILLAR FINANCIAL SERVICES
CORP 4.5 05/15/2031 525,000.00 05/11/2026
4.53%
524,280.75
524,311.47
98.59
4.83%
517,600.13
4,987.50
0.25%
(6,711.35)
A1/A
A+
4.79
4.21
57636QBL7 MASTERCARD INC 4.6 06/08/2031 1,765,000.00 06/04/2026
4.62%
1,763,588.00
1,763,629.76
98.93
4.85%
1,746,151.57
11,952.97
0.84%
(17,478.19)
Aa3/A+
NA
4.85
4.26
67066GAR5 NVIDIA CORP 4.5 06/15/2031 1,065,000.00 06/15/2026
4.54%
1,062,976.50
1,063,025.34
97.87
5.00%
1,042,299.53
5,724.38
0.50%
(20,725.81)
Aa1/AA
NA
4.87
4.29
023135EC6 AMAZON.COM INC 4.8
07/09/2031 2,760,000.00 07/07/2026
4.83%
2,756,494.80
2,756,538.95
99.05
5.02%
2,733,818.64
8,096.00
1.32%
(22,720.31)
A1/AA
AA-
4.94
4.33
Total Corporate 56,318,000.00 4.37%
55,915,954.52
56,045,579.45
98.26
4.80%
55,320,772.79
536,986.11
26.76%
(724,806.66)
3.57
3.12
MONEY MARKET
FUND
VP4520004 WF ADV 100% TREAS MM FD-SVC
CL #008 1,355,030.92 --
3.25%
1,355,030.92
1,355,030.92
1.00
3.25%
1,355,030.92
0.00
0.66%
0.00
Aaa/AAAm
NA
0.00
0.00
Total Money Market
Fund 1,355,030.92 3.25%
1,355,030.92
1,355,030.92
1.00
3.25%
1,355,030.92
0.00
0.66%
0.00
0.00
0.00
MUNICIPAL BONDS
13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 1,740,000.00 10/30/2024
4.38%
1,749,169.80
1,745,809.31
100.09
4.47%
1,741,494.66
39,150.00
0.84%
(4,314.65)
Aa2/AA-
AA
3.00
2.77
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Municipal
Bonds 1,740,000.00 4.38%
1,749,169.80
1,745,809.31
100.09
4.47%
1,741,494.66
39,150.00
0.84%
(4,314.65)
3.00
2.77
SUPRANATIONAL
459058LN1
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
1,750,000.00 12/12/2024
4.25%
1,721,510.00
1,731,114.10
98.54
4.37%
1,724,469.25
19,775.00
0.83%
(6,644.85)
Aaa/AAA
NA
3.21
2.94
459058LR2
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 4.125 03/20/2030
1,700,000.00 03/14/2025
4.20%
1,694,220.00
1,695,799.53
99.15
4.38%
1,685,621.40
25,517.71
0.82%
(10,178.13)
Aaa/AAA
NA
3.64
3.29
Total Supranational 3,450,000.00 4.23%
3,415,730.00
3,426,913.62
98.84
4.37%
3,410,090.65
45,292.71
1.65%
(16,822.97)
3.42
3.11
US TREASURY
91282CCZ2 UNITED STATES TREASURY 0.875
09/30/2026 1,400,000.00 10/18/2021
1.19%
1,379,054.68
1,399,304.53
99.54
3.80%
1,393,519.40
4,116.80
0.67%
(5,785.13)
Aa1/AA+
AA+
0.17
0.16
91282CDG3 UNITED STATES TREASURY 1.125
10/31/2026 1,400,000.00 11/15/2021
1.25%
1,391,468.75
1,399,570.84
99.34
3.86%
1,390,771.20
3,980.30
0.67%
(8,799.64)
Aa1/AA+
AA+
0.25
0.24
91282CJP7 UNITED STATES TREASURY 4.375
12/15/2026 2,500,000.00 12/28/2023
4.01%
2,525,097.66
2,503,154.60
100.17
3.88%
2,504,297.50
14,045.42
1.21%
1,142.90
Aa1/AA+
AA+
0.38
0.36
912828V98 UNITED STATES TREASURY 2.25
02/15/2027 3,000,000.00 06/29/2026
3.99%
2,968,007.81
2,972,458.90
99.07
4.02%
2,972,235.00
31,139.50
1.44%
(223.90)
Aa1/AA+
AA+
0.54
0.52
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 2,300,000.00 04/17/2024
4.77%
2,283,109.38
2,296,024.83
100.30
4.06%
2,306,847.10
30,540.98
1.12%
10,822.27
Aa1/AA+
AA+
0.71
0.67
91282CKR1 UNITED STATES TREASURY 4.5
05/15/2027 3,200,000.00 05/08/2024
4.65%
3,186,500.00
3,196,461.64
100.28
4.12%
3,208,972.80
30,521.74
1.55%
12,511.16
Aa1/AA+
AA+
0.79
0.76
91282CEW7 UNITED STATES TREASURY 3.25
06/30/2027 3,250,000.00 --
3.18%
3,260,312.50
3,251,832.70
99.21
4.14%
3,224,399.75
9,184.78
1.56%
(27,432.95)
Aa1/AA+
AA+
0.91
0.88
91282CFB2 UNITED STATES TREASURY 2.75
07/31/2027 400,000.00 08/22/2022
3.12%
393,218.75
398,630.96
98.62
4.19%
394,478.00
29.89
0.19%
(4,152.96)
Aa1/AA+
AA+
1.00
0.96
91282CFH9 UNITED STATES TREASURY 3.125
08/31/2027 4,500,000.00 --
3.28%
4,468,902.34
4,493,237.16
98.89
4.19%
4,450,077.00
58,848.51
2.15%
(43,160.16)
Aa1/AA+
AA+
1.08
1.03
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 3,450,000.00 --
4.31%
3,421,152.34
3,443,176.36
99.91
4.20%
3,447,036.45
47,826.33
1.67%
3,860.09
Aa1/AA+
AA+
1.17
1.11
91282CFZ9 UNITED STATES TREASURY 3.875
11/30/2027 850,000.00 12/05/2022
3.81%
852,656.25
850,709.31
99.54
4.23%
846,115.50
5,579.58
0.41%
(4,593.81)
Aa1/AA+
AA+
1.33
1.27
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 2,750,000.00 --
3.67%
2,775,107.42
2,757,219.45
99.50
4.24%
2,736,250.00
9,266.30
1.32%
(20,969.45)
Aa1/AA+
AA+
1.42
1.35
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028 3,000,000.00 02/07/2023
3.81%
2,957,929.69
2,987,318.74
98.92
4.26%
2,967,540.00
285.33
1.44%
(19,778.74)
Aa1/AA+
AA+
1.50
1.44
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028 3,700,000.00 --
4.01%
3,699,113.28
3,699,761.86
99.61
4.25%
3,685,692.10
61,934.78
1.78%
(14,069.76)
Aa1/AA+
AA+
1.58
1.49
91282CNY3 UNITED STATES TREASURY 3.375
09/15/2028 5,000,000.00 10/28/2025
3.50%
4,982,812.50
4,987,321.77
98.16
4.29%
4,907,815.00
63,739.81
2.37%
(79,506.77)
Aa1/AA+
AA+
2.13
1.99
91282CQA2 UNITED STATES TREASURY 3.5
02/15/2029 4,000,000.00 04/27/2026
3.81%
3,966,718.75
3,969,806.37
98.04
4.33%
3,921,408.00
64,585.64
1.90%
(48,398.37)
Aa1/AA+
AA+
2.54
2.35
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 2,300,000.00 04/17/2024
4.62%
2,249,867.19
2,273,020.34
99.50
4.32%
2,288,500.00
31,884.22
1.11%
15,479.66
Aa1/AA+
AA+
2.67
2.46
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 2,000,000.00 07/01/2024
4.41%
1,985,546.88
1,991,569.01
99.75
4.34%
1,995,078.00
7,391.30
0.97%
3,508.99
Aa1/AA+
AA+
2.91
2.70
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 3,500,000.00 09/11/2024
3.45%
3,527,480.47
3,517,067.30
97.95
4.34%
3,428,085.50
53,094.43
1.66%
(88,981.80)
Aa1/AA+
AA+
3.08
2.83
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 5,000,000.00 --
3.83%
4,925,039.06
4,952,217.50
97.52
4.35%
4,875,975.00
58,811.48
2.36%
(76,242.50)
Aa1/AA+
AA+
3.17
2.92
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 3,000,000.00 10/31/2024
4.17%
2,993,789.06
2,995,960.34
99.30
4.36%
2,979,024.00
31,273.78
1.44%
(16,936.34)
Aa1/AA+
AA+
3.25
2.97
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 4,400,000.00 --
4.53%
4,369,171.88
4,378,751.63
100.02
4.37%
4,400,858.00
16,739.13
2.13%
22,106.37
Aa1/AA+
AA+
3.42
3.12
91282CMG3 UNITED STATES TREASURY 4.25
01/31/2030 4,000,000.00 02/07/2025
4.34%
3,983,906.25
3,988,665.25
99.60
4.38%
3,983,908.00
461.96
1.93%
(4,757.25)
Aa1/AA+
AA+
3.50
3.21
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 4,500,000.00 --
4.01%
4,496,958.99
4,497,768.56
98.79
4.37%
4,445,334.00
75,326.09
2.15%
(52,434.56)
Aa1/AA+
AA+
3.58
3.24
91282CNK3 UNITED STATES TREASURY 3.875
06/30/2030 5,000,000.00 --
3.78%
5,020,507.81
5,017,628.32
98.15
4.39%
4,907,420.00
16,847.83
2.37%
(110,208.32)
Aa1/AA+
AA+
3.91
3.57
91282CHR5 UNITED STATES TREASURY 4.0
07/31/2030 5,000,000.00 10/23/2025
3.59%
5,089,062.50
5,074,687.68
98.56
4.40%
4,928,125.00
543.48
2.38%
(146,562.68)
Aa1/AA+
AA+
4.00
3.65
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of July 31, 2026
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 5,000,000.00 --
3.66%
4,991,425.79
4,993,021.17
97.11
4.41%
4,855,470.00
75,849.18
2.35%
(137,551.17)
Aa1/AA+
AA+
4.08
3.68
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 5,000,000.00 --
3.59%
5,008,789.06
5,007,412.07
97.07
4.40%
4,853,515.00
60,911.89
2.35%
(153,897.07)
Aa1/AA+
AA+
4.17
3.76
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 1,750,000.00 12/15/2025
3.73%
1,731,816.41
1,734,106.94
96.43
4.41%
1,687,519.75
10,375.68
0.82%
(46,587.19)
Aa1/AA+
AA+
4.33
3.93
91282CQG9 UNITED STATES TREASURY 3.875
03/31/2031 3,500,000.00 05/21/2026
4.28%
3,438,066.41
3,440,545.15
97.72
4.42%
3,420,158.00
45,578.89
1.65%
(20,387.15)
Aa1/AA+
AA+
4.67
4.15
Total US Treasury 98,650,000.00 3.83%
98,322,589.86
98,468,411.28
98.75
4.28%
97,406,425.05
920,715.03
47.12%
(1,061,986.23)
2.57
2.35
Total Portfolio 210,394,588.49 4.12%
207,994,491.53
208,751,856.94
97.62
4.45%
206,702,630.60
1,715,001.08
100.00%
(2,049,226.35)
2.85
2.46
Total Market Value +
Accrued 208,417,631.68
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TRANSACTIONS
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TRANSACTION LEDGER
City of Cupertino | Account #10659|07/01/2026 Through 07/31/2026|
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 07/09/2026 023135EC6 2,760,000.00 AMAZON.COM INC 4.8
07/09/2031 99.873 4.83%(2,756,494.80)0.00 (2,756,494.80)0.00
Purchase 07/21/2026 89231DAD7 515,000.00 TAOT 2026-C A3 4.51
03/17/2031 99.985 4.80%(514,925.12)0.00 (514,925.12)0.00
Total Purchase 3,275,000.00 (3,271,419.92)0.00 (3,271,419.92)0.00
TOTAL
ACQUISITIONS 3,275,000.00 (3,271,419.92)0.00 (3,271,419.92)0.00
DISPOSITIONS
Sale 07/09/2026 74340XBL4 (1,500,000.00)PROLOGIS LP 4.375
02/01/2029 99.491 4.68%1,492,365.00 28,802.08 1,521,167.08 2,981.15
Sale 07/09/2026 79466LAQ7 (1,355,000.00)SALESFORCE INC 4.5
03/15/2028 99.771 4.37%1,351,897.05 19,647.50 1,371,544.55 (5,836.88)
Total Sale (2,855,000.00)2,844,262.05 48,449.58 2,892,711.63 (2,855.74)
TOTAL
DISPOSITIONS (2,855,000.00)2,844,262.05 48,449.58 2,892,711.63 (2,855.74)
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IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the
price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation
policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include
the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any
specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors,
market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or
custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not
possible to invest directly in an index.
Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party
suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use,
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current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied
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regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the
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Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency
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available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end.
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BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr US Treasury & Agency
Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated
US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average
of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years
remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount
outstanding of $1 billion for sovereigns and $250 million for agencies.
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CITY OF CUPERTINO
Agenda Item
Subject:Receipt of Monthly Treasurer's Report for July 2026.
Receive the Monthly Treasurer's Report for July 2026.
CITY OF CUPERTINO Printed on 8/26/2026Page 1 of 1
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July 2026 Report of City‐wide Receipts, Disbursements, and Cash Balances
Cash and Investments (Unaudited)
Beginning Balance Ending Balance
Fund Type Fund Number/Name as of June 30, 2026 Receipts Disbursements Journal Adjustments as of July 31, 2026
General Fund 100 General Fund 221,872,721 12,573,319 (12,140,849) 524,402 222,829,593
General Fund 130 Investment Fund 0 ‐ ‐ 682,330 682,330
Special Revenue Funds 210 Storm Drain Improvement 153,716 ‐ ‐ 375 154,091
Special Revenue Funds 215 Storm Drain AB1600 2,396,133 49,760 ‐ 5,932 2,451,825
Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 944,996 2,520 (332,269) 2,722 617,968
Special Revenue Funds 260 CDBG 729,877 8,267 (29,686) 2,347 710,804
Special Revenue Funds 261 HCD Loan Rehab 230,372 ‐ ‐ ‐ 230,372
Special Revenue Funds 265 BMR Housing 4,696,318 335,442 (50,425) 11,345 4,992,679
Special Revenue Funds 270 Transportation Fund 15,967,788 275,587 (230,197) 39,693 16,052,871
Special Revenue Funds 271 Traffic Impact 959,456 ‐ ‐ 2,343 961,799
Special Revenue Funds 280 Park Dedication 21,592,636 11,843 (39,694) 52,720 21,617,505
Special Revenue Funds 281 Tree Fund 84,595 1,686 ‐ 207 86,488
Debt Service Funds 365 Public Facilities Corp (1,500) ‐ ‐ ‐ (1,500)
Capital Project Funds 420 Capital Improvement Fund 34,107,792 ‐ (1,071,465) ‐ 33,036,327
Capital Project Funds 427 Stevens Creek Corridor Park 157,338 ‐ ‐ ‐ 157,338
Capital Project Funds 429 Capital Reserve*7,142,250 ‐ ‐ ‐ 7,142,250
Enterprise Funds 520 Resource Recovery 4,967,518 154,511 (211,938) 12,433 4,922,524
Enterprise Funds 560 Blackberry Farm 805,488 ‐ (72,074) 84,477 817,891
Enterprise Funds 570 Sports Center 1,335,609 ‐ (125,658) 80,682 1,290,633
Enterprise Funds 580 Recreation Program 3,080,619 ‐ (320,683) 226,539 2,986,476
Internal Service Funds 610 Innovation & Technology 3,189,959 22,333 (633,575) 5,836 2,584,553
Internal Service Funds 620 Workersʹ Compensation 4,222,764 ‐ (159,120) 3,641 4,067,284
Internal Service Funds 630 Vehicle/Equip Replacement 1,429,485 34,100 (214,686) 2,680 1,251,579
Internal Service Funds 641 Compensated Absence/LTD 29,008 ‐ (8,921) 272 20,360
Internal Service Funds 642 Retiree Medical 71,758 ‐ (163,756) 185 (91,814)
Total 330,166,695$ 13,469,368$ (15,804,998)$ 1,741,159$ 329,572,225$
* For reporting purposes, this fund rolls up/combines with Fund 420
Printed August 25, 2026
For more information on funds, please see cupertino.org/fund‐structure
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July 2026 Report of City‐wide Fund Balances/Net Position
(Unaudited)
Beginning Fund Balance Ending Fund Balance
Fund Type Fund Number/Name as of June 30, 2026 Revenues Expenditures as of July 31, 2026
General Fund 100 General Fund 196,538,001 (385,007) 6,029,104 190,123,889
General Fund 130 Investment Fund (977,745) 682,330 ‐ (295,415)
Special Revenue Funds 210 Storm Drain Improvement 152,155 (871) ‐ 151,284
Special Revenue Funds 215 Storm Drain AB1600 2,332,483 2,574 ‐ 2,335,057
Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drai 1,296,569 (6,316) 207,079 1,083,175
Special Revenue Funds 260 CDBG 1,575,811 (5,446) 7,264 1,563,102
Special Revenue Funds 261 HCD Loan Rehab 231,291 ‐ ‐ 231,291
Special Revenue Funds 265 BMR Housing 9,919,029 (26,326) 8,117 9,884,585
Special Revenue Funds 270 Transportation Fund 13,595,783 (91,273) 117,508 13,387,002
Special Revenue Funds 271 Traffic Impact 929,514 (5,436) ‐ 924,078
Special Revenue Funds 280 Park Dedication 21,210,670 (110,500) ‐ 21,100,170
Special Revenue Funds 281 Tree Fund 86,303 1,207 ‐ 87,510
Debt Service Funds 365 Public Facilities Corp 0 ‐ ‐ 0
Capital Project Funds 420 Capital Improvement Fund 24,613,002 ‐ 3,000 24,610,002
Capital Project Funds 427 Stevens Creek Corridor Park 157,966 ‐ ‐ 157,966
Capital Project Funds 429 Capital Reserve*7,025,482 ‐ ‐ 7,025,482
Enterprise Funds 520 Resource Recovery 4,667,784 (22,078) 112,416 4,533,289
Enterprise Funds 560 Blackberry Farm 648,661 79,335 29,601 698,395
Enterprise Funds 570 Sports Center 1,038,822 76,767 64,768 1,050,821
Enterprise Funds 580 Recreation Program 2,630,860 280,808 125,101 2,786,567
Internal Service Funds 610 Innovation & Technology 2,730,499 (13,142) 422,661 2,294,695
Internal Service Funds 620 Workersʹ Compensation 2,666,026 (23,134) 161,989 2,480,903
Internal Service Funds 630 Vehicle/Equip Replacement 3,195,830 (6,219) 46,435 3,143,176
Internal Service Funds 641 Compensated Absence/LTD (29,448) ‐ ‐ (29,448)
Internal Service Funds 642 Retiree Medical (167,772) ‐ ‐ (167,772)
Total 296,067,574$ 427,273$ 7,335,044$ 289,159,804$
* For reporting purposes, this fund rolls up/combines with Fund 42
Printed August 25, 2026
For more information on funds, please see cupertino.org/fund‐structure
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CITY OF CUPERTINO
Agenda Item
Subject: Acceptance of Annual Evaluation Report on the Federal Emergency Management Agency (FEMA)
Community Rating System’s (CRS) Program for Public Information.
Adopt Resolution No. 26-091 Accepting the Annual Evaluation Report for Fiscal Year 2026 (Year 5) of the 2021
Santa Clara County Multi-Jurisdictional Program for Public Information.
CITY OF CUPERTINO Printed on 8/26/2026Page 1 of 1
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PUBLIC WORKS DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-5732
TELEPHONE: (408) 777-3354
CUPERTINO.GOV
CITY COUNCIL STAFF REPORT
Meeting: September 1, 2026
Subject
Acceptance of Annual Evaluation Report on the Federal Emergency Management Agency
(FEMA) Community Rating System’s (CRS) Program for Public Information.
Recommended Action
Adopt Resolution No. 26-XXX Accepting the Annual Evaluation Report for Fiscal Year 2026 (Year
5) of the 2021 Santa Clara County Multi-Jurisdictional Program for Public Information.
Background
The Community Rating System (CRS) is a voluntary program under the FEMA National Flood
Insurance Program (NFIP) that allows communities to earn flood insurance premium discounts
for their residents and businesses by conducting floodplain management activities that exceed
NFIP minimum requirements. Communities earn CRS points for activities that promote flood
risk reduction practices and encourage the purchase of flood insurance. Activities eligible for CRS
points include, flood emergency preparedness planning, maintenance of elevation certificates
and benchmarks, open space preservation within the designated floodplain, and public outreach
and education of flood risk and flood insurance. The CRS class ratings are assigned to
participating communities based on points earned, with each 500-point increment resulting in a
better class rating. Each incremental improvement in class rating (CRS class ratings range from
10 to 1) qualifies residents and businesses within the participating community to an additional
five percent discount on flood insurance premiums for properties located within a Special Flood
Hazard Area (SFHA). For example, 500 points earned would equate to a CRS class rating of 9 (or
a five percent discount), 1,000 points earned would equate to a CRS class rating of 8 (or a 10
percent discount), etc.
FEMA requires the elected body of each community that participates in the CRS program to
approve a five-year Multi-Jurisdictional Program for Public Information (PPI) in order to receive
points for the PPI CRS activity. The PPI allows communities to work together on messaging that
helps to reduce flood risks and to design a collective outreach program that delivers these
messages effectively and efficiently. The number of points earned as a result of having an
approved PPI will vary depending on how extensive the program is implemented within each
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participating community’s jurisdiction; however, it is expected to range from 80 to 200 points for
communities who participate in the Santa Clara County (County) PPI.
Although Valley Water is not a land-use agency, FEMA recognized Valley Water’s already robust
public outreach efforts in flood risk reduction messages and approved the classification of Valley
Water as a fictitious community within the CRS program. This unique arrangement not only
allows Valley Water to act as the lead agency in creating the first PPI for the County but also
allows the County communities participating in the CRS program to claim points earned by
Valley Water. The Valley Water District Board adopted the first PPI in 2015 for use by
communities within the County that participate in the CRS program.
The PPI is required to be updated every five years to evaluate the public outreach messaging and
to adjust the PPI as needed, and FEMA requires the governing bodies of the participating CRS
communities to approve the updated 2021 PPI in order to either begin or continue to earn points.
The Valley Water District Board approved the updated 2021 five-year PPI on April 27, 2021, and
provided the document to participating jurisdictions for approval and implementation with the
communities’ existing CRS programs. In turn, the Cupertino City Council adopted Resolution
No. 21-073 approving the 2021 PPI on August 17, 2021.
In addition to updating the PPI every five years, FEMA requires an annual evaluation report
describing PPI implementation efforts and requires the participating communities to share each
annual report with their governing bodies to remain an active PPI participant and continue
receiving PPI points. City Council adopted Resolution No. 22-088 accepting the Annual
Evaluation Report for FY 22 (Year 1) on July 19, 2022, Resolution No. 23-090 accepting the Annual
Evaluation Report for FY 23 (Year 2) on July 18, 2023, Resolution No. 24-076 accepting the Annual
Evaluation Report for FY 24 (Year 3) on July 16, 2024, and Resolution No. 25-062 accepting the
Annual Evaluation Report for FY 25 (Year 4) on July 15, 2025.
Reasons for Recommendation and Available Options
Valley Water initiated the preparation of the fifth annual evaluation report by hosting a meeting
in May 2026 where staff and stakeholders from each participating community were invited to
provide input on their respective PPI project accomplishments for this fiscal year. The Annual
Evaluation Report for FY 26 (Year 5) of the 2021 County Multi-Jurisdictional Program for Public
Information (Attachment B) is the fifth and final annual evaluation report under the 2021 PPI and
is a culmination of the input provided by the participating communities from the May 2026
meeting.
The City has participated in the CRS program since 2005. Following a comprehensive five-year
review by FEMA in January 2025, the City improved its CRS rating from a Class 7 to a Class 6, in
part due to the City’s participation in the PPI, which equates to a 20 percent flood insurance
premium discount for properties located within a SFHA, and a 10 percent flood insurance
premium discount for properties located outside a SFHA. City property owners pay
approximately $65,000 per year in flood insurance premiums (as of August 2026, per the NFIP).
The total annual savings to policy holders attributable to the City’s CRS discount is approximately
$13,100.
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Neighboring cities have earned similar CRS ratings (Los Altos – 7, Mountain View – 7, Sunnyvale
– 7, Palo Alto – 6). The City’s current CRS Class 6 rating is comparable with neighboring
jurisdictions and provides reasonable flood insurance premium discounts to Cupertino residents
and businesses. Maintaining and improving CRS ratings requires ongoing participation in
floodplain management, public outreach, and risk reduction activities. While additional CRS
credit opportunities may exist, achieving a Class 5 rating would likely require significant new
programmatic efforts and staffing resources beyond the City’s current CRS program. Staff will
continue to evaluate opportunities to maintain and enhance the City’s CRS standing as cost-
effective measures become available.
The City was recently made aware of Valley Water’s decision to discontinue their role as the PPI
host. Although the full ramifications of this decision are still unknown, the City could lose some
or all of its points for this CRS activity which could result in the City’s CRS rating being returned
to a Class 7. With the 2021 PPI sunsetting in FY 26, the participating PPI communities would need
to consider leading or co-leading a multi-jurisdictional PPI, creating an individual City PPI, or
moving forward without a PPI. On July 31, 2026, the City along with the various PPI communities
sent a joint letter to Valley Water requesting they reconsider their decision so they can continue
to provide support for the PPI to Cupertino and our neighboring cities (Attachment C). To date,
staff have not received a response from Valley Water and will continue to monitor the situation.
The City continues to be an active PPI participant. The City’s FY 26 Project Accomplishments are
listed starting on Page 12 of the Annual Evaluation Report (Attachment B). Staff recommends
adopting the Draft Resolution accepting the Annual Evaluation Report for Fiscal Year 2026 (Year
5) of the 2021 Santa Clara County Multi-Jurisdictional Program for Public Information
(Attachment A). By adopting the resolution to accept the annual report, the City is meeting
FEMA’s requirements to continue earning points for this CRS activity. Continued participation
in the CRS program helps preserve flood insurance premium discounts for Cupertino residents
and businesses while supporting ongoing public education and flood risk reduction efforts.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
City Work Program (CWP) Item/Description
None
Council Goal:
Quality of Life
California Environmental Quality Act
No California Environmental Quality Act impact.
________________________________
Prepared by: Jennifer Chu, Senior Civil Engineer
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Reviewed by: Chad Mosley, Director of Public Works
Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
A – Draft Resolution
B – Annual Evaluation Report for FY 26
C – July 31, 2026 Joint Letter for Reconsideration
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Attachment A
RESOLUTION NO. 26-XXX
A RESOLUTION OF THE CUPERTINO CITY COUNCIL
ACCEPTING THE ANNUAL EVALUATION REPORT FOR FISCAL YEAR
2026 (YEAR 5) OF THE 2021 SANTA CLARA COUNTY MULTI-
JURISDICTIONAL PROGRAM FOR PUBLIC INFORMATION
WHEREAS, in 1968, the United States Congress passed the National Flood
Insurance Act creating the National Flood Insurance Program (NFIP). The NFIP
was designed to reduce future flood losses through local floodplain management
programs and provision of flood insurance to those most in need. The NFIP
requires that participating communities adopt certain minimum requirements
intended to reduce future flood losses; and
WHEREAS, in 1990, the NFIP implemented the Community Rating System
(CRS) as a voluntary program for recognizing and encouraging community
floodplain activities that exceed the minimum NFIP standards; and
WHEREAS, in 2005, the City of Cupertino was admitted to the CRS. The
City’s participation in the CRS program gives flood insurance policyholders a
discounted premium; and
WHEREAS, in 2013, the Federal Emergency Management Agency (FEMA),
the agency responsible for implementing the NFIP, updated the CRS program by
adding the formation of a Multi-Jurisdictional Program for Public Information
(PPI), a public outreach element that will encourage targeted outreach to a larger
regional area; and
WHEREAS, in 2015, the first Santa Clara County Multi-Jurisdictional PPI
(2015 PPI) was approved by the Santa Clara Valley Water District Board for use by
communities within Santa Clara County that participate in the CRS program; and
WHEREAS, every five years, the PPI must be updated and adopted by the
governing bodies of all participating communities in order to continue receiving
CRS credit for the PPI activity. The 2021 Santa Clara County Multi-Jurisdictional
PPI (2021 PPI) is the updated five-year plan adopted by the Santa Clara Valley
Water District; and
WHEREAS, on August 17, 2021, the City Council of the City of Cupertino
adopted Resolution No. 21-073 accepting the 2021 PPI; and
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Resolution No. 26-XXX
Page 2
WHEREAS, in each subsequent year, FEMA requires that an annual
evaluation report be created to describe PPI implementation within the fiscal year.
The annual report must be shared with a community’s governing body in order to
continue receiving CRS credit for the PPI activity; and
WHEREAS, on July 19, 2022, the City Council of the City of Cupertino
adopted Resolution No. 22-088 accepting the Annual Evaluation Report for FY 22
(Year 1), the first annual evaluation report of the 2021 PPI; and
WHEREAS, on July 18, 2023, the City Council of the City of Cupertino
adopted Resolution No. 23-090 accepting the Annual Evaluation Report for FY 23
(Year 2), the second annual evaluation report of the 2021 PPI; and
WHEREAS, on July 16, 2024, the City Council of the City of Cupertino
adopted Resolution No. 24-076 accepting the Annual Evaluation Report for FY 24
(Year 3), the third annual evaluation report of the 2021 PPI; and
WHEREAS, on July 15, 2025, the City Council of the City of Cupertino
adopted Resolution No. 25-062 accepting the Annual Evaluation Report for FY 25
(Year 4), the fourth annual evaluation report of the 2021 PPI; and
WHEREAS, in 2026, the City of Cupertino, along with other communities
in Santa Clara County, worked with the Santa Clara Valley Water District to create
the Annual Evaluation Report for FY 26 (Year 5), the fifth and final annual
evaluation report of the 2021 PPI; and
WHEREAS, the 2021 PPI will sunset at the end of FY 26.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby accepts the Annual Evaluation Report for FY 26 (Year 5) of the
2021 Santa Clara County Multi-Jurisdictional Program for Public Information.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 1st day of September, 2026, by the following vote:
Members of the City Council
AYES:
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Resolution No. 26-XXX
Page 3
NOES:
ABSENT:
ABSTAIN:
________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
________
Lauren Sapudar, City Clerk
________________________
Date
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FC14 MEMORANDUM
FC 14 (03-11-25)
Page 1 of 2
TO: Melanie Richardson, P.E.
Interim Chief Executive Officer
FROM:
Chief of External Affairs
SUBJECT: FY26 Annual Evaluation Report
(Year 5: July 2025 – June 2026) for the 2021
Santa Clara County Multi-Jurisdictional
Program for Public Information (PPI)
DATE: August 10, 2026
Valley Water continues to support local partners in the Federal Emergency Management
Agency's (FEMA's) National Flood Insurance Program (NFIP) Community Rating System (CRS)
program. The CRS is a voluntary incentive program that recognizes and encourages community
floodplain management activities that exceed the minimum NFIP requirements.
Through the CRS, flood insurance holders in participating communities receive discounted
premium rates to reflect the reduced flood risk. The three goals of the CRS are:
1. Reduce flood damage to insurable property,
2. Strengthen and support the insurance aspects of the NFIP, and
3. Encourage a comprehensive approach to floodplain management.
Background
Valley Water has supported the local CRS program since 1998. Since Valley Water is not a
land-use agency (i.e., city, town, or county), it is not considered an NFIP community and does
not technically qualify to participate in the CRS program.
Valley Water's flood risk reduction activities throughout Santa Clara County (county) earns CRS
credits that are transferred to each CRS participating community, supporting savings on NFIP
insurance policies within those jurisdictions. Currently, 11*1 of the 16 communities (cities,
towns, and the county) within Santa Clara County participate in the CRS program.
FEMA first introduced the Program for Public Information (PPI) as a CRS creditable activity in
2013. The PPI encourages CRS-participating communities to work with local stakeholders to
design a community outreach program on flood risk reduction that best fits local needs. This
can be done as a single or multi-jurisdictional effort.
2021 Santa Clara County Multi-Jurisdictional Program for Public Information (PPI)
On April 27, 2021, the Valley Water Board of Directors adopted the 2021 PPI following
completion of the 2015 PPI; the governing bodies of the CRS participating communities
adopted the 2021 PPI soon thereafter.
In addition to updating the PPI every five years, FEMA requires CRS communities seeking
continued CRS credit to complete an Annual Evaluation Report on PPI efforts and share the
report with their governing bodies. Attached is the final Annual Evaluation Report for Fiscal
Year 26 (Year 5 of the 2021 PPI). Overall, the CRS Users Group/PPI Committee successfully
implemented and completed the 2021 PPI in FY26.
Please direct questions about the PPI Annual Evaluation Report to Amy Fonseca, Acting
Manager, Office of Civic Engagement at (408) 630-3005.
*1 Current Participating CRS Communities include: Valley Water and the Cities of Cupertino, Gilroy, Los Altos, Milpitas,
Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, and Sunnyvale.
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Melanie Richardson, P.E.
Interim Chief Executive Officer Page 2 of 2 August 10, 2026
Rachael Gibson
Chief of External Affairs
External Affairs Division
Date
Attachment: Annual Evaluation Report for FY26 (Year 5) for the 2021 Santa Clara County Multi-
Jurisdictional Program for Public Information (PPI)
cc: R. Gibson, K. Yasukawa, A. Fonseca, CRS File
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Santa Clara County Multi-Jurisdictional Program for Public Information 2021
FY26 Annual Evaluation Report
(Year 5: July 2025 to June 2026)
July 2026
Prepared by:
Santa Clara Valley Water District
and
Santa Clara County CRS communities
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ATTACHMENT 1
I. INTRODUCTION
The Community Rating System (CRS) is a voluntary program of the Federal Emergency Management Agency’s
(FEMA) National Flood Insurance Program (NFIP). The CRS program allows communities to earn flood insurance
premium discounts for their residents and businesses by implementing local mitigation, floodplain management,
and outreach activities that exceed the minimum NFIP requirements to reduce the risk of flooding.
In Santa Clara County, 11 (eleven) communities, including Santa Clara Valley Water District (Valley Water) have
actively participated in the FEMA NFIP CRS for over 30 years.
The CRS participating communities (CRS communities) are City of Cupertino, City of Gilroy, City of Los Altos, City
of Milpitas, City of Morgan Hill, City of Mountain View, City of Palo Alto, City of San Jose, City of Santa Clara, City
of Sunnyvale, and the Santa Clara Valley Water District (Valley Water).
CRS communities, along with their external non-governmental stakeholders, non-CRS communities: City of
Saratoga, Town of Los Altos Hills, Town of Los Gatos, and the County of Santa Clara who opted to join the 2021
Program for Public Information (PPI), comprised the 2021 PPI Committee. The original 2021 PPI Committee is
listed in Table 1. Original Members of the Santa Clara County Multi-Jurisdictional 2021 PPI Committee of the 2021
PPI (Attachment 1). Since the development of the 2021 PPI, there may have been changes to the community’s
original 2021 PPI Committee members (either the internal representatives to the organization and/or the external
stakeholders). Those member changes are noted on the meeting attendance sheets.
CRS-creditable PPIs can be single or multi-jurisdictional. For the 2021 PPI, FEMA requires that each CRS
community provide at least two representatives to the regional PPI Committee to meet the credit requirement, with
at least half of the representatives from outside the local government. Additionally, at least half of the
representatives must attend all the meetings of the regional PPI Committee.
An essential benefit of the PPI Committee’s work is close collaboration between local public agency staff who work
on flood protection throughout Santa Clara County. Together, PPI Committee members continue strengthening
their individual CRS programs and ensuring communities can evaluate their flood programs against a nationally
recognized benchmark.
The 2021 PPI Committee, the remaining non-CRS communities (City of Saratoga, Town of Los Gatos, Town of Los
Altos Hills, and the County of Santa Clara), and other interested parties make up the Santa Clara County CRS
Users Group.
The Santa Clara County CRS Users Group collaborates to ensure floodplain management activities
provide enhanced public safety, reduced damage to property and public infrastructure, and avoidance of economic
disruption and loss in Santa Clara County. Through the five-year PPI development and the annual reporting
process, members of the SC County CRS Users Group learn from one another about local floodplain management
activities, including flood protection and land use issues.
Under the CRS program, flood insurance premium rates are discounted to reward CRS communities’ actions that
meet the three goals of the CRS:
(1) reduce flood damage to insurable property.
(2) strengthen and support the insurance aspects of the NFIP; and
(3) encourage a comprehensive approach to floodplain management.
Flood insurance premiums for CRS communities are reduced in 5% increments for every 500 CRS points earned.
As of May 31, 2026, the total savings for Santa Clara County residents from CRS discounts are approximately
$2 million.
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ATTACHMENT 1
Valley Water is the lead flood protection agency for Santa Clara County. Valley Water performs many flood
preparedness outreach and stream stewardship/maintenance activities that can earn credit points for CRS
communities. Since Valley Water is not a land-use agency, the points Valley Water earns as a “fictitious community”
provide a foundation upon which the CRS communities can build. FEMA approved this unique arrangement with
Valley Water in 1998.
The CRS Coordinator’s Manual, 2013 Edition, included the option to undertake a Program for Public Information
(PPI), which standardizes our flood preparedness outreach messages and increases communities’ CRS points.
Each participant of the PPI Committee brings unique perspectives and suggestions that enhance the PPI. Each
community must adopt the PPI through a formal vote by the community’s governing body.
In 2013, Valley Water helped initiate and facilitate the effort to develop the first Multi-Jurisdictional PPI, enabling
all Santa Clara County CRS communities to work together and benefit from the effort. Non-CRS communities
were also invited to participate in developing the PPI. This work effort resulted in the 2015 Multi-Jurisdiction PPI
(2015 PPI).
On April 14, 2015, Valley Water’s Board adopted the 2015 PPI, which sunset in April 2020; the other CRS
communities’ governing bodies adopted the 2015 PPI soon thereafter.
Under the CRS, a PPI must be updated every five years. Each subsequent year after adopting the PPI, the PPI
Committee must submit an annual evaluation report to FEMA describing the PPI implementation for the prior fiscal
year. The PPI Committee must evaluate whether the flood risk reduction messages in the PPI remain relevant and
adjust the PPI as needed. The annual evaluation report is shared with each CRS community’s governing body as
an informational item.
As required for CRS credit, annual evaluation reports for FY16 (Year 1 of the 2015 PPI) through FY19 (Year 4 of
the 2015 PPI) were prepared, sent to each CRS community’s governing body, and included in each community’s
respective annual recertifications or as part of a community’s documentation for those that were cycled on any
given year.
In FY20 (Year 5 of the 2015 PPI), the PPI Committee updated the 2015 PPI, which had expired. The Insurance
Services Office (ISO), FEMA’s CRS program management contractor, exempted the PPI Committee from
submitting an annual evaluation report for FY20 (Year 5 of the 2015 PPI) as the committee focused on updating
the document.
In February 2020, Valley Water hosted the start of the five-year PPI update process. Fifteen Santa Clara
County communities worked together to update the 2015 PPI. These communities included the current 11
CRS communities as well as four non-CRS communities that expressed interest in joining the 2015 PPI and
possibly the CRS program. Staff and external stakeholders from each agency participated in developing the
new PPI.
In March 2020, the Coronavirus (COVID-19) outbreak started. The California State Emergency Services Act, the
Governor’s Emergency Declaration related to the COVID-19 pandemic, the Governor’s Executive Order
N-29-20, and Order of the County of Santa Clara Public Health Officer dated March 16, 2020, went into effect.
The COVID-19 pandemic caused far-reaching, unprecedented changes. Businesses and organizations faced
economic and operational uncertainty across every industry and sector. The workforce impacts during
COVID-19 caused delays beyond control, including the PPI Committee’s ability to continue its work of updating
the 2015 PPI. Many communities shifted priorities to respond to the public health crisis; therefore, FEMA
provided an extension of completing the update to the 2015 PPI to early 2021.
The 2021 PPI Committee reconvened in October 2020 to resume the 2015 PPI update. Several virtual meetings
followed until the 2021 PPI Committee completed the 2021 PPI in April 2021. The 2021 PPI was adopted by
CRS communities, as indicated in Table 1. Adoption Dates 2021 PPI.
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II. 2021 PPI DEVELOPMENT PROCESS
Valley Water, CRS, and non-CRS communities initiated the 2021 PPI process in February 2020.
Discussions were postponed due to COVID-19; the process was reinitiated in October 2020. The Santa
Clara County 2021 Multi-Jurisdictional Program for Public Information document was completed in April
2021 (refer to Section I. Introduction for COVID-19-related delays).
Virtual meetings were held between 2020 and 2021 to develop the 2021 PPI. FEMA’s six priority topic messages
and the three additional messages identified in the 2015 PPI carried forward into the 2021 PPI. The 2021 PPI
Committee felt all nine topics and supporting messages were still relevant for reaching Santa Clara County
residents and ensuring they were flood-ready.
The below listed is Table 3 in the 2021 PPI: CRS Priority Messages
Topic
Number Topic message Public Message
(Select one message per topic)
TOPIC #1 Know your flood hazard
Know your flood risk
Contact your floodplain manager to find out if your
property is in a floodplain
Check if your home or business is in a
Special Flood Hazard Area
TOPIC #2 Insure your property for your flood
hazard
Insure your property
There is a 30-day waiting period for the policy to take
place
TOPIC #3 Protect people from the flood hazard Follow evacuation orders
Learn the best route to high ground
TOPIC #4 Protect your property from the flood
hazard
Prepare your home
Sandbags can offer protection against a foot or less of
floodwater
Get sandbags before a flood
TOPIC #5 Build responsibly Comply with development requirements
Check with your city/county floodplain manager before
you build
TOPIC #6 Protect natural floodplain functions Keep debris and trash out of our streams
Don’t pollute, dump, or drain anything in creeks
Additional Outreach Topic Messages
(only one message per topic)
TOPIC #7 Develop an emergency plan Develop an emergency plan
TOPIC #8 Download disaster apps Download disaster emergency apps
TOPIC #9 Understand shallow flooding risks––
don’t drive through standing water
Understand shallow flooding risks - don’t drive through
standing water
The 2021 PPI Committee worked between the meetings to draft the 2021 PPI and review the extensive list of
outreach and flood response projects (Attachment 2).
Based on the 2021 PPI Committee’s evaluation of the 2015 PPI, the consensus was that most of the 2015
PPI flood risk reduction messages were still relevant, so only minor edits were incorporated as needed. This
became the basis for the 2021 PPI; therefore, no additional FEMA review was required, as the 2015 PPI
already ensured its provisions were fully compliant with FEMA requirements.
FEMA's ISO CRS Specialist and Technical Reviewers determine how many CRS points the 2021 PPI activities
earn. The PPI Committee estimates that of the possible 350 points for Activity 330, each CRS community could
earn up to 300+/- points for PPI efforts.
Once Valley Water approved the 2021 PPI (5-Year Plan), the final document was provided to the
2021 PPI Committee to present to their governing bodies for adoption and implementation.
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ATTACHMENT 1
Table 1. Dates of 2021 PPI Adoption shows each agency's 2021 PPI approval dates; all 11 CRS
communities have adopted the 2021 PPI.
Table 1. Adoption Dates of the 2021 PPI
Community Date Presented Adopted
Santa Clara Valley
Water District 4/27/21 X
City of Cupertino 8/17/21 X
City of Gilroy 7/01/21 X
City of Los Altos 7/13/21 X
Town of Los Altos Hills
(*non-CRS community)
Not required Not required
Town of Los Gatos
(*non-CRS community)
Not required Not required
City of Milpitas 5/18/21 X
City of Morgan Hill 6/16/21 X
City of Mountain View 6/22/21 X
City of Palo Alto 6/14/21 X
City of San Jose 11/16/21 X
City of Santa Clara 7/06/21 X
County of Santa Clara
(*non-CRS community)
Not required Not required
City of Saratoga
(*non-CRS community)
Not required Not required
City of Sunnyvale 6/29/21 X
Total Approved 11
*Non-CRS communities are encouraged to participate in the ongoing efforts and initiatives of the Santa Clara County CRS Users Group and/or
PPI Committee; however, those who opted to participate in the 2021 PPI are not required to adopt the PPI or share annual evaluation reports
with their governing bodies.
III. ANNUAL EVALUATION REPORTS
The 2021 PPI states that the 2021 PPI Committee will meet at least once yearly to evaluate the PPI and
incorporate any needed revisions. This meeting is coordinated in conjunction with the ongoing CRS User’s
Group meetings, which occur at least twice a year.
The evaluation will cover the following:
Review of projects that were completed.
Evaluate progress toward outcomes.
Provide recommendations on projects that have not been completed.
Provide recommendations for new projects not previously identified.
Address any Target Audience changes; and
Assess the program's impact during an actual flood event if one has occurred.
The 2021 PPI Committee prepares the annual evaluation report for submission with each CRS community’s
annual CRS recertification package (or scheduled 5-year cycle visits). The annual evaluation report is then
shared with each CRS community governing body as an informational item.
As required, annual evaluation reports for FY22 (Year 1 of the 2021 PPI) through FY26 (Year 5 of the 2021 PPI) were
prepared, sent to each CRS community’s governing body, and included in each community’s respective annual
recertifications or as part of a community’s documentation for those that were cycled on any given year.
Section V. 2024 Santa Clara County CRS Users Group/PPI Committee Meetings – Monitoring and Evaluating
the 2021 PPI of this annual evaluation report summarizes the meetings held to develop the FY26 Annual
Evaluation Report (Year 5 of the 2021 PPI).
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Table 2 below shows how each community expects to share the FY26 Annual Evaluation Report with its
governing body.
Table 2. How the 2021 PPI FY26 (Year 5) Annual Evaluation Report will be shared with the
Community’s Governing Body
Community Method for Sharing
Santa Clara Valley Water District
City of Cupertino Consent Item Council Agenda
City of Gilroy Consent Calendar
City of Los Altos Council Informational Staff Report
Town of Los Altos Hill (*non-CRS community)Not required
Town of Los Gatos (*non-CRS community) Not required
City of Milpitas Memo to City Council
City of Morgan Hill Council Consent Calendar
City of Mountain View Council Weekly Update “Council
Connection”
City of Palo Alto Informational Staff Report
City of San Jose Council Consent Calendar
City of Santa Clara Council Consent Calendar
County of Santa Clara (*non-CRS community)Not required
City of Saratoga (*non-CRS community) Not required
City of Sunnyvale City Manager’s “Update Sunnyvale”
*Non-CRS communities are not required to share annual evaluation reports with their governing bodies.
IV. 2021 PPI ACCOMPLISHMENTS FOR FY26
The 2021 PPI Committee identified three efforts needed from each CRS community to prepare and finalize
subsequent annual evaluation reports.
1. Governing bodies must adopt the 2021 PPI (Table 1. Adoption dates of the 2021 PPI). The 2021 PPI
Committee must prepare an annual evaluation report and share it with its governing body as informational
items (Table 2. How the 2021 PPI Annual Evaluation Report for FY26, Year 5 will be shared with the
Community’s Governing Body).
2. For each fiscal year (July 1 - June 30), the communities must implement and monitor the outreach/flood
response projects identified in Appendix A, CRS Creditable Outreach and Flood Response Projects by CRS
Community of the 2021 PPI (Attachment 2).
3. The PPI Committee must review and consider the ‘New Initiatives’ identified in the 2021 PPI (page 66) for
advancing flood risk reduction efforts.
Governing Bodies Approval: All 11 CRS communities’ governing bodies, including Valley Water, adopted the
2021 PPI. Each agency (Community) shows the approval dates in Table 1 noted above.
Tracking System: The 2021 PPI is multi-jurisdictional and includes 15 agencies (11 CRS communities and four
non-CRS communities). Tracking implementation is quite complex compared to a single-agency PPI. As the
informal lead agency, Valley Water oversees the record-keeping to ensure consistency throughout the county. An
electronic file-sharing system, Egnyte, is set up with folders for each community to file and share documents
related to the 109 potential outreach/flood response projects identified in the 2021 PPI and all CRS-related
documentation. This also includes a comprehensive spreadsheet tracking which lists outreach projects
accomplished in any given fiscal year by each community (Attachment 2). This spreadsheet, along with the
annual evaluation report, will be submitted with annual CRS recertifications or as part of scheduled 5-year cycle
visits.
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ATTACHMENT 1
ISO assigns credit for Valley Water outreach/flood response projects to all Santa Clara County CRS communities’
ratings. Some communities also choose to carry out and report on their own outreach/flood response projects, in
addition to those of Valley Water. These projects are shown on the composite spreadsheet (Attachment 2 -
Appendix A from 2021 SC County Multi-Jurisdictional PPI noting FY26 Project Accomplishments) and include
input from each agency.
The PPI Committee discussed the benefits of using the Egnyte shared filing system for tracking the 2021
PPI outreach/flood response projects and all CRS-related documentation. The PPI Committee also
discussed ensuring each agency regularly uploads its CRS documentation. These benefits are:
- Information Share/Knowledge Transfer: CRS communities can view each other’s program documentation.
When a community improves its CRS rating, another community can access the documents submitted to
determine how the CRS credited activities helped improve the score.
- Document Repository: A central location for CRS-related documentation, organized to mirror the CRS
Coordinator’s Manual (by community/activity/element), proves helpful when a community experiences
staff turnover.
- Documentation Submittals: CRS documents are organized and easy to share with the CRS Specialists
conducting cycle visits and/or annual recertification.
Summary of PPI Projects Accomplished in FY26
Attachment 2 of this annual evaluation report includes the complete outreach/flood response project list. It lists all
projects proposed in the 2021 PPI, with a “Project Accomplishments” column noting actions taken during the
fourth year, FY26 of the 2021 PPI.
Audiences Projects Accomplished
Community at Large (CAL) 81 potential projects, 64 accomplished
Residents and Businesses in the Special Flood
Hazard Area (SFHA)
18 potential projects, 16 accomplished
Messengers to Other Target Audiences
(Organizations & Businesses Serving the
Community)
10 potential projects, 10 were accomplished
*Total Accomplished Projects 90 of 109
* Note: All projects carried out by CRS communities were accomplished in FY26. Variance in the number of potential projects
versus accomplished projects is due to no updates from non-CRS communities, which is not required for this annual evaluation report.
These numbers go well beyond the minimum requirements of the CRS program for PPI credit under
Activity 330. We anticipate all CRS communities will receive the maximum number of credits for our collective
efforts in FY26.
Valley Water’s Outreach/Flood Response Projects
The 2021 PPI Committee identified each community's outreach/flood response projects. The implementation of
these projects is reflected in the ‘FY26 (Year 5) of the 2021 PPI Project Accomplishments’ column of
Attachment 2.
FY26 Annual Flood Awareness Campaign
Valley Water’s FY26 Flood Awareness Campaign (Attachment 3 for more details) effectively educated and engaged
residents in Santa Clara County about the risks of flooding, emphasizing the importance of proactive preparation
and access to vital safety resources. The campaign leveraged cutting-edge technologies like digital geo-targeting
and multilingual outreach, blending traditional strategies with innovative solutions to connect with communities at
risk of flooding.
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ATTACHMENT 1
Goals:
1.Awareness: Educate FEMA-designated Special Flood Hazard Areas (SFHAs) residents and businesses
about their flood risks and mitigation strategies.
2.Preparedness: Empower residents to take preventative actions, including knowing their flood risk, signing
up for emergency alerts, and knowing where to find free sandbags.
3.Access:Provide multilingual resources and technologies to connect diverse communities with flood safety
information, including the innovative Valley Water’s Surface Water Data Portal. When extreme weather
strikes, residents can know if their home is at risk of flooding by visiting alert.valleywater.org for the latest
information on local creeks and reservoir water levels.
Refer to Attachment 3 for more details on Valley Water’s FY26 flood awareness campaign.
CRS Community Outreach/Flood Response Projects
Other Community Engagement Efforts
October 2025 officially kicked off the flood season.
On November 19, 2025, staff participated in a flood preparedness press conference held at Valley Water’s
Emergency Operations Center site in San José. The press conference was a joint news event with the City of San
José, the County of Santa Clara, and the National Weather Service. The event featured speakers from Valley Water
and participating agencies, a tour of Valley Water’s Emergency Operations Center, and an emergency kit assembly
table with flood-readiness materials.
Valley Water Education Outreach Program
Valley Water’s Education Outreach includes flood awareness messaging in classroom lessons presented year-
round. A dedicated flood-focused lesson is offered from October through April. Valley Water’s role as a flood
protection agency is introduced in all lessons so that participants in Education Outreach programs know that flood
protection is one of Valley Water’s core objectives in Santa Clara County.
The following are the Education Outreach efforts from July 2025 - June 2026.
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Flood-Focused Programs
Education Outreach offers two lessons and one assembly focused on flood awareness and preparedness: The
Three Little Pigs and the Bad Weather Wolf for transitional kindergarten through second grade, and Watershed
Maps for second and third grades. The Three Little Pigs and the Bad Weather Wolf is also offered as a school
assembly.
The results of the Flood-Focused Programs delivered between July 2025 and June 2026 are as follows:
101 flood-focused programs
2,645 students
124 educators
Flood Awareness Messaging
In addition to Flood-Focused Programs, Education Outreach provided additional flood awareness messaging in
general classroom presentations, assemblies, libraries, and public events.
The results of the general flood protection messaging between July 2025 and June 2026 are as follows:
302 programs with general flood protection messaging
8,728 students messaging
374 educators
661 public youth in Santa Clara County
Community Events and Engagement
Booth Support at Events
Valley Water staff made a concerted effort to actively participate in community events, including community festivals
and emergency preparedness affairs, particularly in communities and neighborhoods in or near flood zones. In
FY26 (from September 2025 – May 2026), Valley Water and the communities’ staff hosted 29 booths and
distributed flood preparedness information on flood safety and emergency preparedness materials, including Valley
Water’s annual FPM. Those events are listed below:
1. July 4, 2025 – San Jose Council District 8 Fourth of July Fireworks, San Jose
2. July 5, 2025 – Morgan Hill Chamber Night Music Series, Morgan Hill
3. July 16–17, 2025 – Mountain View Technology Showcase, Mountain View
4. July 24, 2025 – Happy Hollow Season of the Senior Safari, San Jose
5. August 2, 2025 – Asian Americans for Community Involvement Back-to-School Health Fair, San Jose
6. August 5, 2025 – San Martins Lions Club National Night Out, San Martin
7. August 5, 2025 – Morgan Hill National Night Out, Morgan Hill
8. August 15, 2025 – Morgan Hill Chamber Friday Night Music, Morgan Hill
9. August 16, 2025 – Cupertino Chamber Night Market, Cupertino
10. August 21, 2025 – San Jose Chamber BBQ, San Jose
11. August 28, 2025 – Happy Hollow Season of the Senior Safari, San Jose
12. August 30, 2025 – Santos Family Car Show, Alviso
13. August 30–31, 2025 – Silicon Valley Pride Parade and Festival, San Jose
14. September 6, 2025 – Capitol Park Goss Neighborhood Association National Night Out, San Jose
15. September 6–7, 2025 – Mountain View Art and Wine Festival Booth, Mountain View
16. September 13, 2025 – Rotary Club of Cupertino Silicon Valley Fall Festival, Cupertino
17. September 21–23, 2025 – WateReuse California Conference, San Diego
18. September 26, 2025 – Assemblymember Ahrens’ Inaugural Fall Harvest BBQ, Santa Clara
19. September 27, 2025 – Vovinam Viet Vo Dao 34th Annual Moon Festival, San Jose
20. September 28, 2025 – Stevens Creek Trail (FoSCT) Trailblazer Race, Mountain View
21. October 11, 2025 – Martial Cottle Park’s Fall Festival 2025, San Jose
22. October 11, 2025 – Guadalupe River Park Conservancy Pumpkins in the Park, San Jose
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23. October 11, 2025 – Cupertino Chamber Diwali Festival, Cupertino
24. October 18, 2025 – Valley Health Foundation Women's Leadership and Policy Summit, San Jose
25. October 25, 2025 – District 8 Fall Family Festival, San Jose
26. October 25, 2025 – Senator Cortese’s 3rd Annual Picnic by the Lake, San Jose
27. November 12–15, 2025 – Cal-IPC Symposium, Ventura
28. December 6, 2025 – Santa Visits Alviso Foundation Drive, Alviso
29. February 13, 2026 – ASCE SJ Younger Member High School Day, San Jose
30. February 13, 2026 – City of San Jose D1 and D10 w/ NAACP, San Jose
31. March 28, 2026 – CEEF/CUSD Run for Great Schools 5K and Fun Run, Cupertino
32. March 28, 2026 – CERT 5K Family Fun Run (D10), San Jose
33. April 18, 2026 – City of Milpitas Earth Day, Milpitas
34. April 25, 2026 – Acterra Love Our Earth Festival / WaterPaloooza, Palo Alto
35. April 25, 2026 – Morgan Hill Community Earth Day Festival, Morgan Hill
36. May 9, 2026 – Berryessa Art & Wine Festival, San Jose
37. May 23–24, 2026 – Morgan Hill Mushroom Mardi Gras, Morgan Hill
38. June 6–7, 2026 – 50th Annual Sunnyvale Wine & Art Festival, Sunnyvale
39. June 12, 2026 – WEPA Fest 2026, San Jose
40. June 13, 2026 – AACSA's 45th Annual Juneteenth Festival, San Jose
41. June 13, 2026 – Dia De Portugal, San Jose
Speakers Bureau Program
In FY26 (from July 2025 through June 2026), Valley Water's ‘Managing our Precious Resource Speakers Bureau
Program’ reached the 11 organizations listed below. All general presentations mention flood protection and the
need to ‘Get Flood Ready’ regardless of the county’s drought status. They also include links to Valley Water’s
‘Flood Ready’ information and resources webpage (ValleyWater.org/floodready), the hotline to call to report
obstructions in creeks, and flood preparedness collateral available for all in-person events.
Valley Water’s Speakers Bureau Program can customize presentations to update community groups on water-
specific issues and provide updates on projects in their area. The FY26 presentations that included flood
preparedness information are listed below.
1. July 28, 2025 – Cory Neighborhood Association, San Jose
2. August 12, 2025 – Los Altos Kiwanis Club
3. September 4, 2025 – West San Jose Kiwanis Club
4. January 28, 2026 – The Forum, Palo Alto
5. February 27, 2026 – Valley Water’s Water Works Program (via Zoom)
6. April 2, 2026 – Valley Water’s 101 Academy
7. April 9, 2026 – Santa Teresa Catholic Church, San Jose
8. June 4, 2026 – Coin Laundry Association
9. June 8, 2026 – LAFCO (AM presentation), Sunnyvale
10. June 8, 2026 – LAFCO (PM presentation), Morgan Hill
11. June 9, 2026 – LAFCO (PM presentation), San Jose
V. 2026 SANTA CLARA COUNTY CRS USERS GROUP/PPI COMMITTEE MEETINGS –
MONITORING AND EVALUATING THE 2021 PPI
The FY26 Santa Clara County CRS Users Group/PPI Committee meeting was held on May 21,2026. Attendance by
CRS communities was high. Staff from some non-CRS communities, external stakeholders, and other interested
parties were also in attendance. Agendas, meeting notes, and attendance sheets for each meeting are included
(Attachments 4-8).
As required by CRS, the objective of the meeting was to monitor the implementation of the 2021 PPI, determine if
the desired outcomes were achieved, and discuss whether any changes to the 2021 PPI were needed to complete
this annual evaluation report. The PPI Committee agreed that the 2021 PPI messaging and projects would remain
the same for the duration of the 2021 PPI, which sunsets in 2026.
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VI. MESSAGING – Other Initiatives
The multi-jurisdictional PPI Committee identified several possible opportunities in the 2021 PPI to expand on
existing initiatives and may consider initiating newer ones as follows:
1. Continue and expand the standardized flood message prepared for each community to include flood
messages in utility bills yearly, including PG&E.
2. Expand on partnerships with local chambers of commerce to disseminate and share flood preparedness
information.
3. Expand on outreach to the Asian and Latino communities who live in flood-prone areas.
4. Expand on outreach to ‘hot spots’/flood-prone areas by hosting on-site or virtual public events.
5. Expand the reach to local homeowners’ associations (HOA)s and apartment associations
(i.e., Executive Council of Homeowners [ECHO]).
6. Expand the reach to residents in historically underserved and low-income communities through partnerships
with organizations that serve these communities (i.e., Second Harvest Food Bank and others).
7. Communities could pursue FEMA Matching Funds Grants for severe Repetitive Loss Areas.
8. Review and expand other public information activities, such as Flood Protection Assistance (Activity 360) and
Flood Insurance Promotion (Activity 370).
9. Develop a region-wide Flood Response Preparations (FRP) messaging plan.
The messages the PPI Committee originally chose are still relevant to Santa Clara County. The committee will
continue to increase its efforts to encourage people to prepare personal/family emergency plans and be flood-
ready for the duration of the 2021 PPI. The PPI Committee will also continue coordinating efforts with Valley
Water’s Education Outreach Program to promote flood preparedness in local schools.
The PPI Committee recommends continuing to use social media for messaging for the duration of the 2021 PPI.
Mobile usage among individuals has increased exponentially over the years, and online platforms are rapidly
adjusting to mobile-friendly standards. This provides an excellent opportunity to modernize campaign ad efforts by
utilizing social media and digital advertising to increase exposure and reach more residents in Santa Clara
County. Furthermore, these modern advertising methods allow for specialized demographic targeting to reach a
narrow and defined audience, improving the ability to reach vulnerable populations effectively.
In support of our preparedness messaging, the PPI Committee continues to promote the importance of having
family emergency plans and kits ready before an emergency/flood event occurs.
The PPI Committee continues to promote the American Red Cross All-Hazard App, which monitors alerts for
severe weather, including floods, and the Floodsmart.gov and Ready.gov websites. The communities will
distribute American Red Cross Emergency Contact Cards at events throughout the county.
VII. CONCLUSION
Overall, the CRS Users Group/PPI Committee successfully implemented the 2021 PPI in FY26. The 2021 PPI
allowed PPI Committee members to mutually decide which flood risk reduction messages are most appropriate
for our residents and to identify how to deliver them effectively. Participating in the 2021 PPI aims to enhance the
effectiveness of the flood risk messages to residents, reduce flood risks within Santa Clara County, and earn
valuable CRS credit points when identified outreach projects are implemented.
The CRS Users Group/PPI Committee will continue its outreach efforts through FY26. The 2021 PPI will sunset
in FY26.
___________________________________________________________________________________
Attachments for submission to Valley Water Board, City Councils/Managers, and FEMA, as required:
1. Members of the Santa Clara County Multi-Jurisdictional 2021 PPI Committee 2. Appendix A from 2021 SC County Multi-Jurisdictional PPI noting FY26 Outreach Project Accomplishments 3. Valley Water's FY26 Flood Awareness Campaign 4. May 21, 2026, SC County CRS Users Group/PPI Committee Meeting Agenda
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ATTACHMENT 1
Table 1. Original Members of the Santa Clara County Multi-Jurisdictional 2021 PPI Committee
Community Local Government
Representative and Alternates External Stakeholders
County of Santa
Clara
Chris Freitas
Neville R. Pereira, PE, Development Services Manager, Department of Planning and Development, Floodplain
Manager
Marsha Hovey
Chad Mosley
Engineer, Public Works Department, Floodplain
Manager
Jennifer Chu, Senior Civil Engineer
Jim Oberhofer
Cupertino ARES/RACES
Gilroy Gary Heap, City Engineer
Public Works Department
Jorge Duran, Senior Civil Engineer, Floodplain Manager
Merna Leal
Steven Golden
Andrea Trese, Associate Civil Engineer
Christopher Wilson
Los Altos Suburban District, California Water
Carl Cahill
Nichol Bowersox, Public Works Director/
City Engineer
Christine Hoffmann
Phil Witt
Water District
WooJae Kim
Parks and Public Works, Floodplain Manager
Annamaria Swardenski
Consulting
Steven Erickson,
Floodplain Manager Kan Xu, Principal Civil Engineer,
Engineering Land Development Section
Brian Petrovic, Associate Civil Engineer
Engineering Land Development Section
Elizabeth Koo, Administrative Analyst, Engineering Land
Warren Wettenstein
Economic Development & Trade Commission and President of the Milpitas
Chamber
Morgan Hill Maria Angeles, Senior Civil Engineer, Floodplain
Manager, CFM
Charlie Ha, Supervising Civil Engineer
Swanee Edwards
resident
Renee Gunn
Department
Gabrielle Abdon
Kevin Conant
Rajeev Hada
Public Works Department, Engineering Services Division,
Dan Melick
City of Palo Alto resident
Arlene Lew
Vivian Tom, Senior Transportation Specialist Department of Public Works Development Services
Shari Carlet
certified Floodplain Manager
Santa Clara , Senior Civil Engineer
Falguni Amin, Principal Engineer
Kevin Moore
David Dorcich
Community Development Department, Floodplain
Rebecca Gallardo
Intero, a Berkshire Hathaway Affiliate,
Sunnyvale Tamara Davis, Senior Management Analyst Jeff Holzman, Director, Real Estate District
Development Google
Agnes Veith
Trisha Howard
Paola Giles, Public Information Representative III Sherilyn Tran
Nikki Rowe
Note: Since the development of the 2021 PPI there may have been changes to a community’s 2021 PPI Committee members
(either the local government representatives and/or the external stakeholders). Those member changes are noted on the meeting
attendance sheets.
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6
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8
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103
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101
CC 09-01-2026 Searchable Packet
105
CC 09-01-2026 Searchable Packet
105 of 266
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57
103
CC 09-01-2026 Searchable Packet
107
CC 09-01-2026 Searchable Packet
107 of 266
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18
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57
105
CC 09-01-2026 Searchable Packet
109
CC 09-01-2026 Searchable Packet
109 of 266
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109
CC 09-01-2026 Searchable Packet
113
CC 09-01-2026 Searchable Packet
113 of 266
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23
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110
CC 09-01-2026 Searchable Packet
114
CC 09-01-2026 Searchable Packet
114 of 266
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24
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111
CC 09-01-2026 Searchable Packet
115
CC 09-01-2026 Searchable Packet
115 of 266
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25
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112
CC 09-01-2026 Searchable Packet
116
CC 09-01-2026 Searchable Packet
116 of 266
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27
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114
CC 09-01-2026 Searchable Packet
118
CC 09-01-2026 Searchable Packet
118 of 266
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28
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57
115
CC 09-01-2026 Searchable Packet
119
CC 09-01-2026 Searchable Packet
119 of 266
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5
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5
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A
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8
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p
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9
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117
CC 09-01-2026 Searchable Packet
121
CC 09-01-2026 Searchable Packet
121 of 266
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118
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122
CC 09-01-2026 Searchable Packet
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Agenda Meeting
Santa Clara County CRS Users Group & Program for Public Information (PPI) Committee Meeting
CRS Transition Planning: General Virtual Transition Kick-off Meeting (Task 2.1.3)
March 21, 2026 2:00 p.m. – 4:00 p.m.
Join Zoom Meeting
https://valleywater.zoom.us/j/86592760729?pwd=V2t5x0MRatEN7xXOHe8EZ4NeU0VbLe.1&from=addon
Meeting ID: 865 9276 0729|Passcode: 782108 +1 669 900 9128 US (San Jose)
Purpose: Present an overview of Valley Water’s transition efforts, solicit questions and feedback, and
document key concerns and action items for Valley Water and the CRS-participating communities
Section Meeting Topic Presenter Time
1. Introductions Amy Fonseca 10 min
2. Review of the meeting goals and agenda (see page 2) Amy Fonseca 2 min
3. Annual review of CRS Communities Roster (Google Link) Amy Fonseca 2 min
4. Next steps of CRS Regionalization in Santa Clara County Feasibility Study results Amy Fonseca 5 min
5.
Introduction to Valley Water’s New Partnership Role in the CRS Program for
Santa Clara County (Partnership Model)
2021 Multi-Jurisdictional Program for Public Information (PPI) Annual
Evaluation Report for FY26 (Year 5: July 2025 to June 2026) - 2021 PPI sunset in
April 2026
Is the committee required to submit an annual evaluation report for FY26?
2026 Multi-Jurisdictional PPI, single jurisdiction PPI, or discontinue PPI
Activity 350 – Flood Protection Information, c. flood protection website (WEB)
(page 350-7)
Next Steps
Melissa
Mitchell,
Tetra Tech
90 min
6. Closing Comments Amy Fonseca 2 min
7. Adjourn
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Excerpt from 2025 CRS Coordinator’s Manual:
“Step 7: Implement, monitor, and evaluate the program. The Program for Public Information committee
meets at least annually to monitor the implementation of the outreach projects. The committee assesses
whether the desired outcomes were achieved and what, if anything, should be changed. This work is
described in an evaluation report that is prepared each year, sent to the governing body, and included in
the annual recertification.
The community must update its Program for Public Information at least every five years. This can be a
new document or an addendum to the existing document that updates the needs assessment and all
sections that should be changed based on evaluations of the projects.
The Program for Public Information update will be reviewed for CRS credit according to the Coordinator’s
Manual currently in effect, not the version used when the community originally requested this credit. The
update can qualify as the annual evaluation report for the year it was prepared. The updated Program
for Public Information must be adopted following the same process as adoption of the original
document.”
______________________________________________________________________________________
Activity 350 – Flood Protection Information, c. flood protection website (WEB)(page 350-7)
The community must:
3) The community must check the website’s links at least monthly and fix those that are no longer
accurate.
4) At least annually, the community must review the content to ensure it is still current and pertinent
(e.g., make sure names, addresses, phone numbers, and other contact information are still correct;
update any ordinance changes; etc.)
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Santa Clara County CRS Users Group and PPI Committee
Meeting Minutes - May 21, 2026
Time: 2:00 p.m. Location: Zoom
1. Welcome and Introductions
Amy Fonseca opened the meeting. Representatives from Valley Water, Tetra Tech, and participating
cities introduced themselves.
2. CRS Transition Update
Valley Water reported that full CRS regionalization is not feasible and plans to move from its fictitious-
community role to a partnership model.
Cities will manage their own CRS documentation, recertifications, and ISO/FEMA coordination.
Valley Water will continue regional flood outreach and provide supporting documentation for CRS
credit.
Tetra Tech will provide community-specific assessments and transition support through December
2026, subject to available contract hours.
3. Future of the PPI
The committee discussed continuing the multi-jurisdictional PPI with a new lead, forming a smaller group,
creating individual city PPIs, or retiring the PPI and using standard Activity 350 outreach credits.
No final decision was made. A continuing multi-jurisdictional PPI will require a lead community or shared
coordinating group. The committee should select a direction in the next few months.
4. Activity 350 and Website Information
Valley Water will continue providing regional flood information. Each city remains responsible for local
permitting, regulatory, elevation-certificate, and other community-specific website information. Tetra Tech
will review additional credit opportunities with each community.
5. Decisions
No formal vote or final PPI decision was taken.
Communities will review individual CRS credit impacts before selecting a PPI option.
6. Action Items
All communities: Update the shared CRS contact roster as soon as possible.
Valley Water: Send the meeting recap and consultation instructions; confirm available Tetra Tech
support hours.
Tetra Tech and each community: Schedule and complete individual CRS assessments between June
and December 2026.
Each community: Confirm that Tetra Tech has current CRS records before its consultation.
PPI Committee: Select a PPI direction.
Interested communities: Identify a lead or shared coordinator if the multi-jurisdictional PPI continues.
7. Adjournment
The meeting adjourned at approximately 3:40 p.m.
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July 31, 2026
Christopher Hakes
Chief of Watersheds
Valley Water
5750 Almaden Expressway
San Jose, CA 95118-3686
Dear Mr. Hakes:
The purpose of this joint letter from the various Community Rating System (CRS)
communities in Santa Clara County is to request that Valley Water reconsider its June
2026 decision to conclude its participation in the National Flood Insurance Program
(NFIP) CRS program and transition from its longstanding leadership role to that of a
partner. Our understanding is that in addition to eliminating its CRS program, Valley
Water will no longer administer and lead the Santa Clara County Multi-Jurisdictional
Program for Public Information (PPI).
First, we would like to share our appreciation and thank you for Valley Water’s role as a
CRS community and for also leading the PPI for so many years. Valley Water has
provided exceptional leadership, technical expertise, and regional coordination that
have been instrumental in the success of the Santa Clara County CRS Users' Group.
As the only flood control district participating in the CRS in this capacity, Valley Water
has established a unique and nationally recognized model for regional collaboration.
This leadership has helped local jurisdictions improve their CRS ratings, reduce flood
risk, and deliver meaningful flood insurance premium savings to thousands of residents
and businesses throughout Santa Clara County.
The collaborative framework that Valley Water has cultivated extends beyond
administrative coordination. It has fostered consistency in floodplain management
Subject: Request for Reconsideration of Valley Water’s Participation in
the Federal Emergency Management Agency National Flood
Insurance Program Community Rating System Program
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Re: Request for Reconsideration of Valley Water’s Participation in the Federal Emergency Management
Agency National Flood Insurance Program Community Rating System Program
July 31, 2026
Page 2 of 3
practices, promoted the sharing of technical resources, strengthened relationships
among participating agencies, and enhanced public outreach and education. These
regional benefits are difficult to replicate without a central coordinating agency
possessing Valley Water's expertise and countywide perspective.
As you can imagine, Valley Water’s recent announcement came as a significant
surprise to the agencies participating in the CRS and PPI programs. Collectively, we
believe this change will have an adverse impact on flood insurance premiums for
property owners throughout the Santa Clara Valley and undermine the regional
progress that has been made toward a more coordinated and effective approach to
floodplain management.
We respectfully request that Valley Water reconsider its June 2026 decision to conclude
its participation in CRS and PPI to allow for further discussion with participating
jurisdictions and stakeholders.
Sincerely,
____________________
Craig Mobeck
Director of Public Works
City of Santa Clara
____________________
Matthew Loesch
Director of Public Works
City of San Jose
____________________
Chris Ghione
Public Services Director
City of Morgan Hill
____________________
Christian Di Renzo
Director of Public Works
City of Milpitas
____________________
Chad Mosley
Director of Public Works
City of Cupertino
____________________
Brad Eggleston
Director of Public Works
City of Palo Alto
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Re: Request for Reconsideration of Valley Water’s Participation in the Federal Emergency Management
Agency National Flood Insurance Program Community Rating System Program
July 31, 2026
Page 3 of 3
____________________
John Doughty
Director of Public Works
City of Gilroy
____________________
Victor Chen
Director of Public Works
City of Los Altos
____________________
Jennifer Ng
Director of Public Works
City of Mountain View
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CITY OF CUPERTINO
Agenda Item
Subject:Resolution amending the City of Cupertino Conflict of Interest Code for officials and designated
employees; Amended 2026 Local Agency Biennial Notice
1.) Adopt Resolution No. 26-092 rescinding Resolution No. 24-099 and amending the City of Cupertino
Conflict of Interest Code for officials and designated employees; and
2.) Authorize the City Manager to sign the amended 2026 Local Agency Biennial Notice
CITY OF CUPERTINO Printed on 8/26/2026Page 1 of 1
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RESOLUTION NO. 24-099
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
RESCINDING RESOLUTION NO. 24-083 AND AMENDING THE
CITY OF CUPERTINO CONFLICT OF INTEREST CODE
FOR OFFICIALS AND DESIGNATED EMPLOYEES
WHEREAS, the Political Reform Act of 1974, Government Code section 81000
et seq. (the “Act” or “Political Reform Act”), governs the disclosure of political
campaign contributions and spending by candidates and ballot measure committees,
and sets ethics rules for state and local government officials that impose limits on
decisions or votes that affect the official's financial interests; and
WHEREAS, the City Clerk is the local filing officer for all filings and statements
required by the Political Reform Act including campaign contribution and expenditure
reports from candidates for City Council, controlled committees, and independent
expenditure committees, as well as Statements of Economic Interest from current City
officials and designated employees, per the City's Conflict of Interest Code; and
WHEREAS, the Political Reform Act requires every state or local government
agency to adopt and promulgate a Conflict of Interest Code; and
WHEREAS, the City Council last updated the City’s Conflict of Interest Code
on September 4, 2024 by adoption of Resolution No. 24-083; and
WHEREAS, the City Council now desires to amend the City’s Conflict of
Interest Code to update the disclosure categories and the list of designated positions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO
DOES HEREBY RESOLVE AS FOLLOWS:
1. That Resolution No. 24-083 is hereby rescinded; and
2. That the terms of Title 2 California Code of Regulations section 18730 and
any amendments to it duly adopted by the FPPC shall, along with the Code
entitled, “City of Cupertino Conflict of Interest Code for Officials and
Designated Employees” as set forth in Exhibit A along with attached
Appendices A and B, in which members, consultants, and employees are
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Resolution No. 24-099
Page 2
designated and disclosure categories are set forth, constitute the Conflict of
Interest Code of the City of Cupertino; and
3.That all Statements of Economic Interest shall be filed electronically with the
City Clerk.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 3rd day of December 2024, by the following vote.
Members of the City Council
AYES: Mohan, Fruen, Chao, Moore
NOES: None
ABSENT: Wei
ABSTAIN: None
SIGNED:
Sheila Mohan, Mayor
City of Cupertino
Date
ATTEST:
Kirsten Squarcia, City Clerk Date
12/11/2024
12/11/2024
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EXHIBIT A
CITY OF CUPERTINO CONFLICT OF INTEREST CODE
FOR OFFICIALS AND DESIGNATED EMPLOYEES
The Political Reform Act, Government Code section 81000 et seq. requires state
and local government agencies to adopt and promulgate conflict of interest codes. The
Fair Political Practices Commission has adopted a regulation, 2 Cal. Code Regs. section
18730, which contains the terms of a standard conflict of interest code. It can be
incorporated by reference and may be amended by the Fair Political Practices
Commission after public notice and hearings to conform to amendments to the
Political Reform Act. Therefore, the terms of 2 Cal. Code Regs. section 18730 and any
amendments to it duly adopted by the Fair Political Practices Commission are hereby
incorporated by reference and, along with the attached Appendices A and B in which
members, consultants, and employees are designated and disclosure categories are set
forth shall constitute the conflict of interest code of the City of Cupertino.
Officials and designated employees under Government Code section 87200
shall file electronic statements of economic interests (Form 700) with the City Clerk
who will make the statements available for public inspection and reproduction. (Gov.
Code, § 81008,)
Upon receipt of the statements (Form 700) of the City of Cupertino City Council,
City Manager, City Attorney, City Treasurer, and Planning Commissioners, the
agency shall electronically forward the original of these statements to the Fair Political
Practices Commission. The City Clerk will electronically retain original statements for
all other designated employees.
It has been determined that the positions listed below manage public
investments and will file a statement of economic interests (Form 700) pursuant to
Government Code section 87200:
City Treasurer (Director of Administrative Services)
Deputy City Treasurer (Finance Manager)
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APPENDIX A
DESIGNATED POSITIONS AND
APPLICABLE REPORTABLE INTEREST CATEGORIES
Title Assigned Disclosure Category
ADMINISTRATIVE SERVICES, FINANCE & HUMAN RESOURCES
Director of Administrative Services
Treasurer)
1 (Gov. Code § 87200 filer)
Finance Manager (Deputy City
Treasurer)
1 (Gov. Code § 87200 filer)
Human Resources Manager 2
Budget Manager 2
Purchasing Manager 2
Senior Management Analyst 3
Human Resources Analyst I/II 3
Accountant I/II 3
Senior Accountant 3
Account Clerk I/II 3
Accounting Technician 3
APPOINTED OR ELECTED OFFICIALS & COMMISSIONS
City Council 1 (Gov. Code § 87200 filers)
Audit Committee 2
Bicycle Pedestrian Commission 1
Arts and Culture Commission 1
Housing Commission 1
Library Commission 1
Parks and Recreation Commission 1
Planning Commission 1 (Gov. Code § 87200 filers)
Public Safety Commission 1
Sustainability Commission 1
Technology, Information, &
Communications Commission
3
CITY ATTORNEY’S OFFICE
City Attorney 1 (Gov. Code § 87200 filer)
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Title Assigned Disclosure Category
Senior Assistant City Attorney 1
Assistant City Attorney 1
Legal Services Manager 1
CITY MANAGER’S OFFICE
City Manager 1
Assistant City Manager 1
Deputy City Manager 1
Administration
Management Analyst 1
Senior Management Analyst 1
Executive Assistant to the City Manager 1
City Clerk’s Office
City Clerk 1
Deputy City Clerk 1
Communications & Public Information
Communications and Marketing
Coordinator
1
Emergency Management
Assistant to the City Manager 1
Management Analyst 1
Community Relations Coordinator 1
Economic Development
Economic Development Manager 1
COMMUNITY DEVELOPMENT
Director of Community Development 1
Assistant Director of Community
Development
1
Planning
Planning Manager 1
Senior Planner 1
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Title Assigned Disclosure Category
Associate Planner 1
Assistant Planner 1
Management Analyst 1
Permit Technician 1
Building
Building Official 1
Deputy Building Official 1
Senior Building Inspector 1
Building Inspector 1
Permit Technician 1
Plan Check Engineer 1
Housing
Housing Manager 1
Senior Housing Coordinator 1
Code Enforcement
Senior Code Enforcement Officer 4
Code Enforcement Officer 4
Consultants
Consultants (see Appendix B
definitions)
As determined by City Manager
INNOVATION & TECHNOLOGY
Chief Technology Officer 1
Innovation and Technology Manager 3
Business Systems Analyst 3
Multimedia Communication Specialist 3
Management Analyst 1
PUBLIC WORKS
Director of Public Works 1
Assistant Director of Public Works 1
Capital Improvement Programs
Manager
1
Transportation Manager 1
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Title Assigned Disclosure Category
Senior Public Works Project Manager 1
Public Works Projects Manager 1
Environmental Programs Manager 1
Service Center Superintendent 3
Public Works Supervisor 1
City Engineer 1
Public Works Inspector 1
Senior Management Analyst 1
Management Analyst 1
Environmental Services & Environmental Affairs
Environmental Programs Manager 1
Environmental Programs Specialist 3
Environmental Programs Assistant 3
Environmental Compliance Technician 1
Traffic & Engineering
Senior Planner
Transit and Transportation)
1
Assistant Engineer 1
Transportation Manager 1
Senior Civil Engineer 1
Associate Civil Engineer 1
Senior Engineering Technician 6
Engineering Technician 6
Environmental Programs Assistant (Safe
Routes to School)
3
PARKS AND RECREATION
Director of Parks and Recreation 1
Recreation Manager 3
Senior Management Analyst 1
Management Analyst 1
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Appendix B
DISCLOSURE CATEGORIES AND DEFINITIONS
1. Category 1
What to report? All investments, positions in business entities, sources of
income (including gifts, loans, and travel payments), and interests in real
property.
What Form 700 schedules? All Schedules (A through E)
2. Category 2
What to report? All investments, positions in business entities, and sources of
income (including gifts, loans, and travel payments).
What Form 700 schedules? A, C, D, E
3. Category 3
What to report? All investments, positions in business entities, and sources of
income (including gifts, loans, and travel payments) from sources of the type
that provide services, supplies, materials, machinery or equipment to the City.
What Form 700 schedules? A, C, D, E
Definitions
For the purposes of these disclosure categories, the definitions and regulations
contained in the Political Reform Act, Government Code sections 81000 et seq., and the
Fair Political Practices Commission regulations, 2 Cal. Code Regs. section 18730, shall
apply.
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RESOLUTION NO. 26-XXX
A RESOLUTION OF THE CUPERTINO CITY COUNCIL
RESCINDING RESOLUTION NO. 24-099 AND AMENDING THE
CITY OF CUPERTINO CONFLICT OF INTEREST CODE
FOR OFFICIALS AND DESIGNATED EMPLOYEES
WHEREAS, the Political Reform Act of 1974, Government Code section 81000
et seq. (the “Act” or “Political Reform Act”), governs the disclosure of political
campaign contributions and spending by candidates and ballot measure committees,
and sets ethics rules for state and local government officials that impose limits on
decisions or votes that affect the official's financial interests; and
WHEREAS, the City Clerk is the local filing officer for all filings and statements
required by the Political Reform Act including campaign contribution and expenditure
reports from candidates for City Council, controlled committees, and independent
expenditure committees, as well as Statements of Economic Interest from current City
officials and designated employees, per the City's Conflict of Interest Code; and
WHEREAS, the Political Reform Act requires every state or local government
agency to adopt and promulgate a Conflict of Interest Code; and
WHEREAS, the City Council last updated the City’s Conflict of Interest Code
on December 3, 2024 by adoption of Resolution No. 24-099; and
WHEREAS, the City Council now desires to amend the City’s Conflict of
Interest Code to update the list of designated positions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO
DOES HEREBY RESOLVE AS FOLLOWS:
1. That Resolution No. 24-099 is hereby rescinded; and
2. That the terms of Title 2 California Code of Regulations section 18730 and
any amendments to it duly adopted by the FPPC shall, along with the Code
entitled, “City of Cupertino Conflict of Interest Code for Officials and
Designated Employees” as set forth in Exhibit A along with attached
Appendices A and B, in which members, consultants, and employees are
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Resolution No. 26-
Page 2
designated and disclosure categories are set forth, constitute the Conflict of
Interest Code of the City of Cupertino; and
3. That all Statements of Economic Interest shall be filed electronically with the
City Clerk.
PASSED AND ADOPTED at a regular meeting of the City Council of the City
of Cupertino this 1st day of September 2026, by the following vote.
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
Kitty Moore, Mayor City
of Cupertino
Date
ATTEST:
Lauren Sapudar, City Clerk
Date
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EXHIBIT A
CITY OF CUPERTINO CONFLICT OF INTEREST CODE
FOR OFFICIALS AND DESIGNATED EMPLOYEES
The Political Reform Act, Government Code section 81000 et seq. requires state
and local government agencies to adopt and promulgate conflict of interest codes. The
Fair Political Practices Commission has adopted a regulation, 2 Cal. Code Regs. section
18730, which contains the terms of a standard conflict of interest code. It can be
incorporated by reference and may be amended by the Fair Political Practices
Commission after public notice and hearings to conform to amendments to the
Political Reform Act. Therefore, the terms of 2 Cal. Code Regs. section 18730 and any
amendments to it duly adopted by the Fair Political Practices Commission are hereby
incorporated by reference and, along with the attached Appendices A and B in which
members, consultants, and employees are designated and disclosure categories are set
forth shall constitute the conflict of interest code of the City of Cupertino.
Officials and designated employees under Government Code section 87200
shall file electronic statements of economic interests (Form 700) with the City Clerk
who will make the statements available for public inspection and reproduction. (Gov.
Code, § 81008,)
Upon receipt of the statements (Form 700) of the City of Cupertino City Council,
City Manager, City Attorney, City Treasurer, and Planning Commissioners, the agency
shall electronically forward the original of these statements to the Fair Political Practices
Commission. The City Clerk will electronically retain original statements for all other
designated employees.
It has been determined that the positions listed below manage public
investments and will file a statement of economic interests (Form 700) pursuant to
Government Code section 87200:
City Treasurer (Director of Finance Administrative Services)
Deputy City Treasurer (Finance Manager)
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APPENDIX A
DESIGNATED POSITIONS AND
APPLICABLE REPORTABLE INTEREST CATEGORIES
Title Assigned Disclosure Category
ADMINISTRATIVE SERVICES, FINANCE & HUMAN RESOURCES
Director of Administrative Services 1 (Gov. Code § 87200 filer) (Treasurer)
Finance Manager (Deputy City 1 (Gov. Code § 87200 filer) Treasurer)
Human Resources Manager 2
Budget Manager 2
Purchasing Manager 2
Management Analyst
Senior Management Analyst 3
Human Resources Analyst I/II 3
Accountant I/II 3
Senior Accountant 3
Account Clerk I/II 3
Accounting Technician 3
APPOINTED OR ELECTED OFFICIALS & COMMISSIONS
Audit Committee 2
Bicycle Pedestrian Commission 1
Arts and Culture Commission 1
Economic Development Committee 1
Housing Commission 1
Library Commission 1
Parks and Recreation Commission 1
Planning Commission 1 (Gov. Code § 87200 filers)
Public Safety Commission 1
Sustainability Commission 1
Technology, Information, & 3
Communications Commission
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CITY ATTORNEY’S OFFICE
City Attorney 1 (Gov. Code § 87200 filer)
Senior Assistant City Attorney 1
Assistant City Attorney 1
Senior Management Analyst 1
Legal Services Manager 1
CITY MANAGER’S OFFICE
City Manager 1 (Gov. Code § 87200 filer)
Assistant City Manager 1
Deputy City Manager 1
Administration
Assistant to the City Manager 1
Management Analyst 1
Senior Management Analyst 1
Executive Assistant to the City Manager 1
City Clerk’s Office
City Clerk 1
Deputy City Clerk 1
Communications & Public Information
Public Information Officer 3
Communications and Marketing 1
Coordinator
Emergency Management
Assistant to the City Manager 1
Emergency Services Coordinator 1
Management Analyst 1
Community Relations Coordinator 1
Economic Development
Economic Development Manager 1
Human Resources
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Human Resources Manager 2
Human Resources Analyst I/II 3
Management Analyst 1
COMMUNITY DEVELOPMENT
Director of Community Development 1
Assistant Director of Community 1
Development
Planning
Associate Planner 1
Assistant Planner 1
Management Analyst 1
Permit Technician 1
Building
Building Official 1
Deputy Building Official 1
Senior Building Inspector 1
Building Inspector 1
Permit Technician 1
Plan Check Engineer 1
Housing
Housing Manager 1
Senior Housing Coordinator 1
Code Enforcement
Code Enforcement Supervisor 1
Senior Code Enforcement Officer 14
Code Enforcement Officer 14
Consultants
Consultants (see Appendix B As determined by City Manager
definitions)
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FINANCE
Director of Finance (Treasurer) 1 (Gov. Code § 87200 filer)
Finance Manager (Deputy City Treasurer)2
Budget Manager 2
Purchasing Manager 2
Management Analyst 1
Senior Management Analyst 3
Accountant I/II 3
Senior Accountant 3
Account Clerk I/II 3
Accounting Technician 3
INNOVATION & TECHNOLOGY
Chief Technology Officer 1
Innovation and Technology Manager 3
Senior Business Systems Analyst 3
Business Systems Analyst 3
Multimedia Communication Specialist 3
Management Analyst 1
PUBLIC WORKS
Director of Public Works 1
Assistant Director of Public Works 1
Capital Improvement Programs 1
Manager
Senior Public Works Project Manager 1
Public Works Projects Manager 1
Service Center Superintendent 3
Public Works Supervisor 1
City Engineer 1
Public Works Inspector 1
Senior Management Analyst 1
Management Analyst 1
Environmental Services & Environmental Affairs
Environmental Programs Manager 1 165
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Environmental Programs Specialist 3
Environmental Programs Assistant 3
Environmental Compliance Technician 1
Traffic & Engineering
Senior Planner 1
(Transit and Transportation)
Assistant Engineer 1
Transportation Manager 1
Senior Civil Engineer 1
Associate Civil Engineer 1
Senior Engineering Technician 16
Engineering Technician 16
Environmental Programs Assistant (Safe 3
Routes to School)
PARKS AND RECREATION
Director of Parks and Recreation 1
Assistant Director of Parks and
Recreation 1
Recreation Manager 3
Senior Management Analyst 1
Management Analyst 1
Communications and Marketing
Coordinator 1
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Appendix B
DISCLOSURE CATEGORIES AND DEFINITIONS
1. Category 1
What to report? All investments, positions in business entities, sources of
income (including gifts, loans, and travel payments), and interests in real
property.
What Form 700 schedules? All Schedules (A through E)
2. Category 2
What to report? All investments, positions in business entities, and sources of
income (including gifts, loans, and travel payments).
What Form 700 schedules? A, C, D, E
3. Category 3
What to report? All investments, positions in business entities, and sources of
income (including gifts, loans, and travel payments) from sources of the type
that provide services, supplies, materials, machinery or equipment to the City.
What Form 700 schedules? A, C, D, E
Definitions
For the purposes of these disclosure categories, the definitions and regulations
contained in the Political Reform Act, Government Code sections 81000 et seq., and the
Fair Political Practices Commission regulations, 2 Cal. Code Regs. section 18730, shall
apply.
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RESOLUTION NO. 26-XXX
A RESOLUTION OF THE CUPERTINO CITY COUNCIL
RESCINDING RESOLUTION NO. 24-099 AND AMENDING THE
CITY OF CUPERTINO CONFLICT OF INTEREST CODE
FOR OFFICIALS AND DESIGNATED EMPLOYEES
WHEREAS, the Political Reform Act of 1974, Government Code section 81000
et seq. (the “Act” or “Political Reform Act”), governs the disclosure of political
campaign contributions and spending by candidates and ballot measure committees,
and sets ethics rules for state and local government officials that impose limits on
decisions or votes that affect the official's financial interests; and
WHEREAS, the City Clerk is the local filing officer for all filings and statements
required by the Political Reform Act including campaign contribution and expenditure
reports from candidates for City Council, controlled committees, and independent
expenditure committees, as well as Statements of Economic Interest from current City
officials and designated employees, per the City's Conflict of Interest Code; and
WHEREAS, the Political Reform Act requires every state or local government
agency to adopt and promulgate a Conflict of Interest Code; and
WHEREAS, the City Council last updated the City’s Conflict of Interest Code
on December 3, 2024 by adoption of Resolution No. 24-099; and
WHEREAS, the City Council now desires to amend the City’s Conflict of
Interest Code to update the list of designated positions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO
DOES HEREBY RESOLVE AS FOLLOWS:
1. That Resolution No. 24-099 is hereby rescinded; and
2. That the terms of Title 2 California Code of Regulations section 18730 and
any amendments to it duly adopted by the FPPC shall, along with the Code
entitled, “City of Cupertino Conflict of Interest Code for Officials and
Designated Employees” as set forth in Exhibit A along with attached
Appendices A and B, in which members, consultants, and employees are
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Resolution No. 26-
Page 2
designated and disclosure categories are set forth, constitute the Conflict of
Interest Code of the City of Cupertino; and
3. That all Statements of Economic Interest shall be filed electronically with the
City Clerk.
PASSED AND ADOPTED at a regular meeting of the City Council of the City
of Cupertino this 1st day of September 2026, by the following vote.
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
Kitty Moore, Mayor
City of Cupertino
Date
ATTEST:
Lauren Sapudar, City Clerk
Date
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EXHIBIT A
CITY OF CUPERTINO CONFLICT OF INTEREST CODE
FOR OFFICIALS AND DESIGNATED EMPLOYEES
The Political Reform Act, Government Code section 81000 et seq. requires state
and local government agencies to adopt and promulgate conflict of interest codes. The
Fair Political Practices Commission has adopted a regulation, 2 Cal. Code Regs. section
18730, which contains the terms of a standard conflict of interest code. It can be
incorporated by reference and may be amended by the Fair Political Practices
Commission after public notice and hearings to conform to amendments to the
Political Reform Act. Therefore, the terms of 2 Cal. Code Regs. section 18730 and any
amendments to it duly adopted by the Fair Political Practices Commission are hereby
incorporated by reference and, along with the attached Appendices A and B in which
members, consultants, and employees are designated and disclosure categories are set
forth shall constitute the conflict of interest code of the City of Cupertino.
Officials and designated employees under Government Code section 87200
shall file electronic statements of economic interests (Form 700) with the City Clerk
who will make the statements available for public inspection and reproduction. (Gov.
Code, § 81008,)
Upon receipt of the statements (Form 700) of the City of Cupertino City Council,
City Manager, City Attorney, City Treasurer, and Planning Commissioners, the agency
shall electronically forward the original of these statements to the Fair Political Practices
Commission. The City Clerk will electronically retain original statements for all other
designated employees.
It has been determined that the positions listed below manage public
investments and will file a statement of economic interests (Form 700) pursuant to
Government Code section 87200:
City Treasurer (Director of Finance)
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APPENDIX A
DESIGNATED POSITIONS AND
APPLICABLE REPORTABLE INTEREST CATEGORIES
Title Assigned Disclosure Category
Audit Committee 2
Bicycle Pedestrian Commission 1
Arts and Culture Commission 1
Economic Development Committee 1
Housing Commission 1
Library Commission 1
Parks and Recreation Commission 1
Planning Commission 1 (Gov. Code § 87200 filers)
Public Safety Commission 1
Sustainability Commission 1
Technology, Information, & 3
Communications Commission
CITY ATTORNEY’S OFFICE
City Attorney 1 (Gov. Code § 87200 filer)
Senior Assistant City Attorney 1
Assistant City Attorney 1
Senior Management Analyst 1
Legal Services Manager 1
CITY MANAGER’S OFFICE
City Manager 1 (Gov. Code § 87200 filer)
Deputy City Manager 1
Assistant to the City Manager 1
Management Analyst 1
Senior Management Analyst 1
Executive Assistant to the City Manager 1
City Clerk’s Office 171
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City Clerk 1
Deputy City Clerk 1
Communications & Public Information
Public Information Officer 3
1
Coordinator
Emergency Management
Emergency Services Coordinator 1
Management Analyst 1
Community Relations Coordinator 1
Economic Development
Economic Development Manager 1
Human Resources
Human Resources Manager 2
Human Resources Analyst I/II 3
Management Analyst 1
COMMUNITY DEVELOPMENT
Director of Community Development 1
Assistant Director of Community 1
Development
Planning
Associate Planner 1
Assistant Planner 1
Management Analyst 1
Permit Technician 1
Building
Building Official 1
Deputy Building Official 1
Senior Building Inspector 1
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Building Inspector 1
Permit Technician 1
Plan Check Engineer 1
Housing
Housing Manager 1
Senior Housing Coordinator 1
Code Enforcement
Code Enforcement Supervisor 1
Senior Code Enforcement Officer 1
Code Enforcement Officer 1
Consultants
Consultants (see Appendix B As determined by City Manager
definitions)
FINANCE
Director of Finance (Treasurer) 1 (Gov. Code § 87200 filer)
Finance Manager (Deputy City Treasurer) 2
Budget Manager 2
Purchasing Manager 2
Management Analyst 1
Senior Management Analyst 3
Accountant I/II 3
Senior Accountant 3
Account Clerk I/II 3
Accounting Technician 3
INNOVATION & TECHNOLOGY
Chief Technology Officer 1
Innovation and Technology Manager 3
Senior Business Systems Analyst 3
Business Systems Analyst 3
Multimedia Communication Specialist 3
Management Analyst 1 173
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PUBLIC WORKS
Director of Public Works 1
Assistant Director of Public Works 1
Capital Improvement Programs 1
Manager
Senior Public Works Project Manager 1
Public Works Projects Manager 1
Service Center Superintendent 3
Public Works Supervisor 1
City Engineer 1
Public Works Inspector 1
Senior Management Analyst 1
Management Analyst 1
Environmental Services & Environmental Affairs
Environmental Programs Manager 1
Environmental Programs Specialist 3
Environmental Programs Assistant 3
Environmental Compliance Technician 1
Traffic & Engineering
Senior Planner 1
(Transit and Transportation)
Assistant Engineer 1
Transportation Manager 1
Senior Civil Engineer 1
Associate Civil Engineer 1
Senior Engineering Technician 1
Engineering Technician 1
Environmental Programs Assistant (Safe 3
Routes to School)
PARKS AND RECREATION
Director of Parks and Recreation 1
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Assistant Director of Parks and
Recreation 1
Recreation Manager 3
Senior Management Analyst 1
Management Analyst 1
Communications and Marketing
Coordinator 1
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Appendix B
DISCLOSURE CATEGORIES AND DEFINITIONS
1. Category 1
What to report? All investments, positions in business entities, sources of
income (including gifts, loans, and travel payments), and interests in real
property.
What Form 700 schedules? All Schedules (A through E)
2. Category 2
What to report? All investments, positions in business entities, and sources of
income (including gifts, loans, and travel payments).
What Form 700 schedules? A, C, D, E
3. Category 3
What to report? All investments, positions in business entities, and sources of
income (including gifts, loans, and travel payments) from sources of the type
that provide services, supplies, materials, machinery or equipment to the City.
What Form 700 schedules? A, C, D, E
Definitions
For the purposes of these disclosure categories, the definitions and regulations
contained in the Political Reform Act, Government Code sections 81000 et seq., and the
Fair Political Practices Commission regulations, 2 Cal. Code Regs. section 18730, shall
apply.
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www.fppc.ca.gov
FPPC Advice: advice@fppc.ca.gov (866.275.3772)
Page 1 of 1
2026 Local Agency Biennial Notice
Name of Agency:
Mailing Address:
Contact Person: Phone No.
Email: Alternate Email:
Accurate disclosure is essential to monitor whether officials have conflicts of interest and to
help ensure public trust in government. The biennial review examines current programs to
ensure that the agency’s code includes disclosure by those agency officials who make or
participate in making governmental decisions.
This agency has reviewed its conflict of interest code and has determined that (check one BOX):
An amendment is required. The following amendments are necessary:
(Check all that apply.)
Include new positions
Revise disclosure categories
Revise the titles of existing positions
Delete titles of positions that have been abolished and/or positions that no longer make or
participate in making governmental decisions
Other (describe)
The code is currently under review by the code reviewing body.
No amendment is required. (If your code is over five years old, amendments may be
necessary.)
Verification (to be completed if no amendment is required)
This agency’s code accurately designates all positions that make or participate in the making of governmental
decisions. The disclosure assigned to those positions accurately requires that all investments, business
positions, interests in real property, and sources of income that may foreseeably be affected materially by the
decisions made by those holding designated positions are reported. The code includes all other provisions
required by Government Code Section 87302.
__________________________________________ _________________________
Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or
amended. Please return this notice no later than October 1, 2026, or by the date specified by your agency, if
earlier, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.
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CITY OF CUPERTINO
Agenda Item
Subject:Acceptance of Legislative Review Committee (LRC) recommendation supporting Senate Bill 922
(Laird) Vehicles: Local Agency Charges: Use of Streets or Highways; Authorization for Mayor to send letters to
the State Legislature.
Adopt support position on Senate Bill 922 (Laird) Vehicles: Local Agency Charges: Use of Streets or Highways
and authorize the Mayor to send letters to the State Legislature.
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CITY MANAGER’S OFFICE
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3212
CUPERTINO.GOV
CITY COUNCIL STAFF REPORT
Date: September 1, 2026
Subject:
Acceptance of Legislative Review Committee (LRC) recommendation supporting Senate Bill 922
(Laird) Vehicles: Local Agency Charges: Use of Streets or Highways; Authorization for Mayor to
send letters to the State Legislature.
Recommended Action
Adopt support position on Senate Bill 922 (Laird) Vehicles: Local Agency Charges: Use of
Streets or Highways and authorize the Mayor to send letters to the State Legislature
Reasons for Recommendation and Available Options
On August 17, the Legislative Review Committee (LRC) adopted three positions on bills that
were outlined in the 2026 Legislative Platform, which can be viewed on the City’s webpage at
cupertino.gov/legislation.
The LRC also discussed SB 922 by Senator Laird, however, they were unable to adopt a position
as this bill falls under a “monitor” position within the platform. Adopting a position of support
or opposition would require consideration by the full Council. The LRC voted to move this bill
forward and recommends that the full Council adopt a support position on this bill. A draft
letter of support is included as Attachment A.
SB 922, as amended on July 2, 2026, clarifies the authority of local governments to recover the
costs of street maintenance and repair through utility rates, franchise fees, and other public
service charges.
The bill amends Vehicle Code Section 9400.8 to specify that the existing prohibition on local
charges for the use of streets and highways applies only to charges based on vehicle weight. It
further clarifies that fees, charges, or surcharges imposed by or for a local agency to recover the
costs of street maintenance, street repair, and other roadway impacts associated with providing
public services are not a tax or permit fee that is prohibited for the privilege of using public
streets. The bill expressly authorizes local agencies to impose and collect these charges and
includes legislative findings rejecting the interpretation adopted in Rogers v. City of Redlands.
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For cities, counties, and special districts, SB 922 confirms that roadway maintenance costs
attributable to public service providers may continue to be recovered through utility rates,
franchise agreements, and similar cost-recovery mechanisms without violating state law.
Opponents, such as the California Taxpayers Association, argue that this bill reduces
transparency and weakens taxpayer protections by allowing road repair costs to be charged
through service fees without voter approval. Supporters, including the League of California
Cities and the Rural County Representatives of California (RCRC), sponsors of this bill, argue
that SB 922 restores legal clarity and preserves long-standing local practices that allow service
fees to recover roadway maintenance costs associated with providing essential public services.
Support
Cities: Belmont, Beverly Hills, Camarillo, Campbell, Capitola, Chino Hills, Concord, El Cerrito,
Fairfield, Foster City, Fullerton, Garden Grove, Glendale, Goleta, Gonzales, Grover Beach,
Hollister, Hueneme, Lafayette, Lakewood, Marina, Moorpark, Moreno Valley, Murrieta,
Norwalk, Oceanside, Orinda, Oxnard, Pacific Grove, Paramount, Paso Robles, Pico Rivera,
Rancho Cucamonga, Redondo Beach, Redwood City, Rocklin, Salinas, San Bernardino, San
Diego, San Luis Obispo, San Mateo, Santa Barbara, Santa Paula, Scotts Valley, Soledad,
Stanton, Thousand Oaks, Torrance, Tulare, Union City, Upland, Vacaville, Ventura, Vernon,
Walnut Creek, and Westminster.
Additional support: League of California Cities [SPONSOR], Rural County Representatives of
California [SPONSOR], California State Association of Counties [SPONSOR], American
Federation of State, County, and Municipal Employees, AFL-CIO, American Society of Civil
Engineers, Region 9, California Chapters of the American Public Works Association, California
Contract Cities Association, California Police Chiefs Association, California Special Districts
Association, Californians Against Waste, City and County of San Francisco, CR&R, Inc., Contra
Costa County, Lamorinda Legislative Coalition, Madera County, Marin County, Monterey
County, Recology, RecycleSmart, Republic Services, Santa Cruz County, Service Employees
Union International, California, Shasta County, Sonoma County Mayor’s and Councilmembers’
Association, StopWaste, Town of Apple Valley, Town of Truckee, West Valley Solid Wate
Management Authority
Opposition
California Taxpayers Association, Coalition of Sensible Taxpayers, Contra Costa Taxpayers
Association,
Status
SB 922 passed out of the Assembly Floor 30-1 on August 10, 2026. On August 18, this bill was
enrolled and presented to the Governor at 3 p.m.
Next steps
If approved, the City will finalize the letter with the Mayor and submit it to the Governor. If not
approved, the City will remain neutral on this bill.
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Sustainability Impact
No sustainability impact.
Fiscal Impact
No sustainability impact.
City Work Program (CWP) Item/Description
None
Council Goal
Public Engagement and Transparency
California Environmental Quality Act
No California Environmental Quality Act impact.
_____________________________________
Prepared by: Astrid Robles, Assistant to the City Manager
Reviewed by: Kirsten Squarcia, Deputy City Manager
Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
A – Draft Letter of Support
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MAYOR KITTY MOORE
kmoore@cupertino.gov
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-1389 • FAX: (408) 777-3366
CUPERTINO.GOV
September 1, 2026
The Honorable Gavin Newsom
Governor, State of California
1021 O Street, Suite 9000
Sacramento, CA 95814
RE: Request for Signature - SB 922 (Laird) Vehicles: Local Agency Charges: Use of Streets
or Highways
Dear Governor Newsom:
On behalf of the City of Cupertino, I am writing to respectfully request your signature on Senate
Bill (SB) 922 (Laird), which would clarify the authority of local agencies to recover the costs of
maintaining and repairing streets, roads, and highways associated with the delivery of public
services.
Cities throughout California are responsible for maintaining extensive local street networks that
are essential to residents, businesses, emergency services, utilities, and other public services. The
operation of heavy service vehicles, including those used for waste collection and other essential
services, contributes to pavement deterioration and creates real maintenance and repair costs for
local governments.
SB 922 provides important clarity by confirming that fees, charges, or surcharges imposed by or
for a local agency to recover street maintenance and repair costs associated with providing public
services are permissible and are not prohibited charges for the privilege of using local streets or
highways. The bill also preserves the existing prohibition on local charges based on vehicle
weight.
For Cupertino and other local governments, SB 922 will:
• Protect Local Infrastructure: Allow cities to appropriately recover costs associated
with wear and deterioration of local streets resulting from the delivery of public services.
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• Promote Fiscal Responsibility: Help ensure that costs attributable to particular services
are incorporated into those services rather than shifted to a city's General Fund and
taxpayers at large.
• Provide Legal and Regulatory Certainty: Clarify state law so local agencies can
continue established practices for funding street maintenance without uncertainty
regarding the application of Vehicle Code Section 9400.8.
• Preserve Local Control: Give communities the flexibility to structure lawful fees and
service charges based on their individual infrastructure needs while maintaining
protections against weight-based road charges.
Maintaining safe and reliable streets is one of the most fundamental responsibilities of local
government. At a time when cities face significant infrastructure needs and rising maintenance
costs, local agencies should have clear authority to ensure that the costs generated by public-
service operations can be appropriately reflected in the cost of providing those services.
SB 922 is a reasonable and important clarification of state law that will help local governments
protect public infrastructure and responsibly manage limited public resources.
For these reasons, the City of Cupertino respectfully requests that you sign SB 922 into law.
Sincerely,
Kitty Moore
Mayor, City of Cupertino
Cc: The Honorable Josh Becker
The Honorable Patrick Ahrens
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CITY OF CUPERTINO
Agenda Item
Subject: Introduction of an ordinance amending Municipal Code Chapter 2.88 Audit Committee
Duties, Powers, and Responsibilities and Related Municipal Code Updates
Introduce and conduct the first reading of Ordinance No. 26-2285 "AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF CUPERTINO AMENDING MUNICIPAL CODE CHAPTER 2.88 TO
RENAME THE AUDIT COMMITTEE AS THE AUDIT AND FINANCE COMMITTEE, UPDATE ITS
DUTIES, POWERS, AND RESPONSIBILITIES, AND UPDATE THE DIRECTOR OF FINANCE
TITLE" to:
1. Rename the Audit Committee as the "Audit and Finance Committee";
2. Modify Section 2.88.100(g) to read: “To review the City’s internal controls and internal
audit reports.”
3. Add Section 2.88.100(i): “To review the use of artificial intelligence in the City’s
financial reporting, internal controls over financial reporting, risk management, and
compliance.”
4. Update Section 2.88.110 referencing Director of Administrative Services to Director of
Finance
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FINANCE DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
CITY COUNCIL STAFF REPORT
Meeting: September 1, 2026
Subject
Introduction of an ordinance amending Municipal Code Chapter 2.88 Audit Committee
Duties, Powers, and Responsibilities and Related Municipal Code Updates
Recommended Action
Introduce and conduct the first reading of Ordinance No. 26-XXXX "AN ORDINANCE
OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING
MUNICIPAL CODE CHAPTER 2.88 TO RENAME THE AUDIT COMMITTEE
AS THE AUDIT AND FINANCE COMMITTEE, UPDATE ITS DUTIES,
POWERS, AND RESPONSIBILITIES, AND UPDATE THE DIRECTOR OF
FINANCE TITLE" to:
1.Rename the Audit Committee as the "Audit and Finance Committee";
2.Modify Section 2.88.100(g) to read: “To review the City’s internal controls and
internal audit reports.”
3.Add Section 2.88.100(i): “To review the use of artificial intelligence in the City’s
financial reporting, internal controls over financial reporting, risk
management, and compliance.”
4.Update Section 2.88.110 referencing Director of Administrative Services to
Director of Finance
to its scope of duties and recommend changes for Council’s consideration. Following this
st practices and input from the City’s
he “Audit and Finance Committee” to reflect its broader oversight role,
(2) clarifying Section 2.88.100(g) to ensure clear oversight of the City’s internal controls
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On October 7, 2025, the City Council conducted a study session on the proposed
amendments and referred additional items back to the Audit Committee for further
consideration, including potential expanded financial oversight responsibilities and
meeting frequency. Specifically, Council requested the Audit Committee to consider:
- Increasing the regular meeting frequency from four to up to six meetings per year,
with flexibility to cancel meetings if there is no business;
-Expanding the Committee’s financial oversight role to include review of the City’s
operating and capital budgets, long-term financial forecasts, reserve policies, and
major financial transactions;
- Considering the establishment of a budget subcommittee; and
- Providing direction that Treasurer’s Reports and Investment Reports will be
placed on the City Council agenda Consent Calendar for receipt, rather than as
informational memoranda. This change has been implemented.
On April 27, 2026, the Audit Committee considered the additional items referred by the
City Council. Following discussion, the Committee unanimously recommended retaining
the three previously proposed Municipal Code amendments and maintaining the existing
quarterly meeting schedule rather than increasing the number of regular meetings. The
Committee also recommended utilizing the City's Internal Audit Work Program as an
alternative means of providing additional financial and operational oversight.
Separately, as part of the City's recent departmental reorganization, the Department of
Administrative Services was renamed the Department of Finance and the Director of
Administrative Services was retitled Director of Finance. Section 2.88.110 of the Municipal
Code currently references the Director of Administrative Services and is therefore
proposed to be updated to reflect the current position title. This is an administrative
update and does not change the duties or responsibilities established by Chapter 2.88.
Consistent with that direction, additional internal audit projects were subsequently
considered by the Audit Committee at its July 27, 2026 meeting. The proposed Internal
Audit Work Program, including the associated request for additional funding, will be
presented separately to the City Council on September 15, 2026.
Analysis
The originally proposed amendments are intended to modernize the Committee’s scope
and align it with evolving best practices in public sector financial oversight. Specifically:
-Name change: Renaming the Committee as the “Audit and Finance Committee”
signals its role in both financial and audit-related oversight.
-Section 2.88.100(g): Clarifying this section strengthens accountability around the
City’s system of internal controls while maintaining existing oversight of internal
audit reports.
-Section 2.88.100(i): Adding this new duty recognizes the increasing use of artificial
intelligence tools in financial reporting, internal controls, risk management, and
compliance, and ensures the committee remains equipped to evaluate emerging
risks and opportunities.
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In response to the City Council's October 7, 2025 direction, the Audit Committee
reconsidered its meeting frequency and potential expansion of its financial oversight
responsibilities. After discussion, the Committee unanimously recommended
maintaining its existing quarterly meeting schedule and did not recommend establishing
a budget subcommittee or expanding the Committee's direct involvement in the City's
annual budget process.
Instead, the Committee recommended utilizing the City's Internal Audit Work Program
to provide additional independent review of financial and operational areas. This
approach maintains the Committee's oversight role while leveraging the expertise of
Baker Tilly, the City's contracted internal auditor, to conduct targeted reviews identified
through the annual work program.
At its July 27, 2026 meeting, the Audit Committee considered additional projects for
inclusion in the Internal Audit Work Program. The proposed work program and related
funding request will be presented separately to the City Council on September 15, 2026.
Next Steps
If the proposed Municipal Code amendments are introduced, staff will return to the City
Council for second reading and adoption of the ordinance. Separately, the Audit
Committee's recommended Internal Audit Work Program and associated funding request
will be presented to the City Council on September 15, 2026.
Sustainability Impact
No sustainability impacts.
Fiscal Impact
No fiscal impact.
City Work Program Item/Description
None
City Council Goal
Fiscal Strategy
California Environmental Quality Act
Not applicable.
_____________________________________
-Section 2.88.110: Currently references the Director of Administrative Services in
connection with staff support for the Committee. The proposed amendment
updates the title to Director of Finance to reflect the City's current organizational
structure. The amendment is administrative and does not modify the authority,
duties, or responsibilities of the position.
Prepared by: Jonathan Orozco, Director of Finance
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Reviewed by: Kirsten Squarcia, Deputy City Manager
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
A – Draft Ordinance (Redline)
B – Draft Ordinance (Clean)
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1
ORDINANCE NO. 26-____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING MUNICIPAL CODE CHAPTER 2.88 TO RENAME THE AUDIT
COMMITTEE AS THE AUDIT AND FINANCE COMMITTEE, UPDATE ITS
DUTIES, POWERS, AND RESPONSIBILITIES, AND UPDATE THE DIRECTOR OF
FINANCE TITLE
The City Council of the City of Cupertino finds that:
1. On May 20, 2025, the City Council directed the Audit Committee to consider
amendments to its duties, powers, and responsibilities and recommend changes
for City Council consideration.
2. On July 28, 2025, the Audit Committee unanimously recommended amendments
to Chapter 2.88 of the Cupertino Municipal Code to: (1) rename the “Audit
Committee” as the “Audit and Finance Committee”; (2) clarify Section 2.88.100(g)
regarding oversight of the City’s internal controls and internal audit reports; and
(3) add a new provision regarding the review of artificial intelligence as it relates
to financial management, internal controls, risk, and compliance.
3. On October 7, 2025, the City Council considered the proposed amendments and
referred additional matters to the Audit Committee for further consideration,
including meeting frequency and potential expanded financial oversight
responsibilities.
4. On April 27, 2026, the Audit Committee considered the additional matters referred
by the City Council and unanimously recommended retaining the three
previously proposed Municipal Code amendments and maintaining the
Committee’s existing meeting frequency.
5. The City Council subsequently renamed the Department of Administrative
Services as the Department of Finance and retitled the Director of Administrative
Services as the Director of Finance. Section 2.88.110 is amended to reflect the
current position title.
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6. The proposed amendments modernize and clarify the Audit Committee’s duties,
powers, and responsibilities and reflect its broader role in financial and audit-
related oversight.
NOW, THEREFORE, THE CITY COUNCIL OF THE OF CITY OF CUPERTINO DOES
ORDAIN AS FOLLOWS:
SECTION 1. Adoption.
The Cupertino Municipal Code is hereby amended as set forth in Attachment A.
SECTION 2: Severability and Continuity.
The City Council declares that each section, sub-section, paragraph, sub-paragraph,
sentence, clause and phrase of this ordinance is severable and independent of every other
section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this
ordinance. If any section, sub-section, paragraph, sub-paragraph, sentence, clause or
phrase of this ordinance is held invalid, or its application to any person or circumstance,
be determined by a court of competent jurisdiction to be unlawful, unenforceable or
otherwise void, the City Council declares that it would have adopted the remaining
provisions of this ordinance irrespective of such portion, and further declares its express
intent that the remaining portions of this ordinance should remain in effect after the
invalid portion has been eliminated. To the extent the provisions of this Ordinance are
substantially the same as previous provisions of the Cupertino Municipal Code, these
provisions shall be construed as continuations of those provisions and not as an
amendment to or readoption of the earlier provisions.
SECTION 3: California Environmental Quality Act.
This Ordinance is not a project under the requirements of the California Environmental
Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because
it has no potential for resulting in physical change in the environment. In the event that
this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption
contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty
to have no possibility that the action approved may have a significant effect on the
environment. CEQA applies only to actions which have the potential for causing a
significant effect on the environment. Where it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment,
the activity is not subject to CEQA. In this circumstance, the proposed action would have
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no or only a de minimis effect on the environment. The foregoing determination is made
by the City Council in its independent judgment.
SECTION 4: Effective Date.
This Ordinance shall take effect thirty days after adoption as provided by Government
Code Section 36937.
SECTION 5: Publication.
The City Clerk shall give notice of adoption of this Ordinance as required by law.
Pursuant to Government Code Section 36933, a summary of this Ordinance may be
prepared by the City Clerk and published in lieu of publication of the entire text. The
City Clerk shall post in the office of the City Clerk a certified copy of the full text of the
Ordinance listing the names of the City Council members voting for and against the
ordinance.
INTRODUCED at a regular meeting of the Cupertino City Council on September
1, 2026 and ENACTED at a regular meeting of the Cupertino City Council on ______,
2026 by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
______________________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
ATTEST:
_______________________
Lauren Sapudar, City Clerk
________________________
Date
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Attachment A –
Amendments To Municipal Code Section 2.88 Title and Sections 2.88.010, 2.88.020,
2.88.030, 2.880.60, 288.070, 2.88.100, 2.88.110, and 2.88.120
CHAPTER 2.88: AUDIT AND FINANCE COMMITTEE
2.88.010 Established–Composition.
A. The Audit and Finance Committee of the City is established. The Audit and Finance
Committee shall consist of five members as follows:
1. Two City Council members;
2. A minimum of Two and a maximum of three at large members who are not
officials or employees of the City nor cohabit with, as defined by law, nor be
related by blood or marriage to, any member of the committee, the City Manager
or the staff person or persons assigned to the committee.
2.88.020 At Large Member–Qualifications.
An Audit and Finance Committee at large member is not required to be a Cupertino
resident. In selecting an at large member, the City Council shall give priority to
individuals who have substantial accounting, audit, or investment experience,
preferably in connection with a governmental agency.
2.88.030 Terms of Office.
A. Audit and Finance Committee members serve at the pleasure of the City Council.
The term of office of the members of the Audit and Finance Committee shall be for
four years commencing on the date of their respective appointments to the Audit and
Finance Committee and shall end on January 30th of the year the terms are due to
expire. No Audit and Finance Committee member shall serve more than two
consecutive terms unless he or she has been appointed to the committee to fill an
unexpired term of less than two years.
B. The appointment, reappointment and rules governing incumbent members of the
Audit and Finance Committee are governed by the Resolution of the City Council
which governs advisory bodies.
2.88.040 Members–Vacancy Prior to Expiration of a Term.
If a vacancy occurs other than by expiration of a term, it shall be filled by the City
Council’s appointment for the unexpired portion of the term.
2.88.050 Chairperson.
The committee shall elect its chairperson and vice chairperson from among its members
and shall appoint a secretary. Terms of the chairperson and vice chairperson shall be for
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one year. Upon approval of the City Council, the City Manager may appoint a secretary
who need not be a member of the committee.
2.88.060 Meetings.
A. The Audit and Finance Committee shall establish a regular time and place of meeting
and rules of conduct thereof and shall hold at least one regular meeting quarterly.
B. A majority of the Audit and Finance Committee shall constitute a quorum for the
purpose of transacting the business of the committee.
2.88.070 Compensation–Expenses.
Members shall serve on the Audit and Finance Committee without compensation, but
all necessary expenses reasonably incurred by them while acting in their official
capacity shall be paid by appropriate action of the City Council.
2.88.080 Majority Vote Required.
A majority vote of the quorum is required to approve a recommendation on any matter
that is presented to the committee which requires a vote.
2.88.090 Records.
The committee shall keep an accurate record of its proceedings and transactions and
shall render such reports to the City Council and Planning Commission as may be
required. These records shall be filed with the City Clerk.
2.88.100 Duties–Powers–Responsibilities.
The powers and functions of the Audit and Finance Committee shall be as follows:
A. To review the annual audit report and management letter;
B. To recommend appointment of auditors;
C. To review the Quarterly Treasurer’s investment report;
D. To recommend a budget format;
E. To review City investment policies and internal controls of such policies;
F. To recommend appointment of internal auditors;
G. To review the City’s internal controls and internal audit reports;
H. To review quarterly Fraud, Waste, and Abuse Program reports;
I. To review the use of artificial intelligence in the City’s financial reporting, internal
controls over financial reporting, risk management, and compliance.
2.88.110 City Staff Assistance.
The Audit and Finance Committee shall have available to it such assistance of City staff
as may be required to perform its functions, the staff assignments and administrative
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procedures to be under the general direction and supervision of the Director of Finance
Administrative Services.
2.88.120 Procedural Rules.
The Audit and Finance Committee may adopt from time to time such rules of
procedure as it may deem necessary to properly exercise its powers and duties. Such
rules shall be subject to approval by the Council before becoming effective. All such
rules shall be kept on file with the chairperson of the Audit and Finance Committee, the
Mayor, and the City Clerk and a copy thereof shall be furnished to any person upon
request.
2.88.130 Effect.
Nothing in this chapter shall be construed as restricting or curtailing any powers of the
City Council or City officers.
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1
ORDINANCE NO. 26-____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING MUNICIPAL CODE CHAPTER 2.88 TO RENAME THE AUDIT
COMMITTEE AS THE AUDIT AND FINANCE COMMITTEE, UPDATE ITS
DUTIES, POWERS, AND RESPONSIBILITIES, AND UPDATE THE DIRECTOR OF
FINANCE TITLE
The City Council of the City of Cupertino finds that:
1. On May 20, 2025, the City Council directed the Audit Committee to consider
amendments to its duties, powers, and responsibilities and recommend changes
for City Council consideration.
2. On July 28, 2025, the Audit Committee unanimously recommended amendments
to Chapter 2.88 of the Cupertino Municipal Code to: (1) rename the “Audit
Committee” as the “Audit and Finance Committee”; (2) clarify Section 2.88.100(g)
regarding oversight of the City’s internal controls and internal audit reports; and
(3) add a new provision regarding the review of artificial intelligence as it relates
to financial management, internal controls, risk, and compliance.
3. On October 7, 2025, the City Council considered the proposed amendments and
referred additional matters to the Audit Committee for further consideration,
including meeting frequency and potential expanded financial oversight
responsibilities.
4. On April 27, 2026, the Audit Committee considered the additional matters referred
by the City Council and unanimously recommended retaining the three
previously proposed Municipal Code amendments and maintaining the
Committee’s existing meeting frequency.
5. The City Council subsequently renamed the Department of Administrative
Services as the Department of Finance and retitled the Director of Administrative
Services as the Director of Finance. Section 2.88.110 is amended to reflect the
current position title.
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6. The proposed amendments modernize and clarify the Audit Committee’s duties,
powers, and responsibilities and reflect its broader role in financial and audit-
related oversight.
NOW, THEREFORE, THE CITY COUNCIL OF THE OF CITY OF CUPERTINO DOES
ORDAIN AS FOLLOWS:
SECTION 1. Adoption.
The Cupertino Municipal Code is hereby amended as set forth in Attachment A.
SECTION 2: Severability and Continuity.
The City Council declares that each section, sub-section, paragraph, sub-paragraph,
sentence, clause and phrase of this ordinance is severable and independent of every other
section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this
ordinance. If any section, sub-section, paragraph, sub-paragraph, sentence, clause or
phrase of this ordinance is held invalid, or its application to any person or circumstance,
be determined by a court of competent jurisdiction to be unlawful, unenforceable or
otherwise void, the City Council declares that it would have adopted the remaining
provisions of this ordinance irrespective of such portion, and further declares its express
intent that the remaining portions of this ordinance should remain in effect after the
invalid portion has been eliminated. To the extent the provisions of this Ordinance are
substantially the same as previous provisions of the Cupertino Municipal Code, these
provisions shall be construed as continuations of those provisions and not as an
amendment to or readoption of the earlier provisions.
SECTION 3: California Environmental Quality Act.
This Ordinance is not a project under the requirements of the California Environmental
Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because
it has no potential for resulting in physical change in the environment. In the event that
this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption
contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty
to have no possibility that the action approved may have a significant effect on the
environment. CEQA applies only to actions which have the potential for causing a
significant effect on the environment. Where it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment,
the activity is not subject to CEQA. In this circumstance, the proposed action would have
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no or only a de minimis effect on the environment. The foregoing determination is made
by the City Council in its independent judgment.
SECTION 4: Effective Date.
This Ordinance shall take effect thirty days after adoption as provided by Government
Code Section 36937.
SECTION 5: Publication.
The City Clerk shall give notice of adoption of this Ordinance as required by law.
Pursuant to Government Code Section 36933, a summary of this Ordinance may be
prepared by the City Clerk and published in lieu of publication of the entire text. The
City Clerk shall post in the office of the City Clerk a certified copy of the full text of the
Ordinance listing the names of the City Council members voting for and against the
ordinance.
INTRODUCED at a regular meeting of the Cupertino City Council on September
1, 2026 and ENACTED at a regular meeting of the Cupertino City Council on ______,
2026 by the following vote:
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
_______________________
Lauren Sapudar, City Clerk
________________________
Date
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_______________________
Floy Andrews, Interim City Attorney
Aleshire & Wynder, LLP
________________________
Date
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Attachment A –
Amendments To Municipal Code Section 2.88 Title and Sections 2.88.010, 2.88.020,
2.88.030, 2.880.60, 288.070, 2.88.100, 2.88.110, and 2.88.120
CHAPTER 2.88: AUDIT AND FINANCE COMMITTEE
2.88.010 Established–Composition.
A. The Audit and Finance Committee of the City is established. The Audit and Finance
Committee shall consist of five members as follows:
1. Two City Council members;
2. A minimum of Two and a maximum of three at large members who are not
officials or employees of the City nor cohabit with, as defined by law, nor be
related by blood or marriage to, any member of the committee, the City Manager
or the staff person or persons assigned to the committee.
2.88.020 At Large Member–Qualifications.
An Audit and Finance Committee at large member is not required to be a Cupertino
resident. In selecting an at large member, the City Council shall give priority to
individuals who have substantial accounting, audit, or investment experience,
preferably in connection with a governmental agency.
2.88.030 Terms of Office.
A. Audit and Finance Committee members serve at the pleasure of the City Council.
The term of office of the members of the Audit and Finance Committee shall be for
four years commencing on the date of their respective appointments to the Audit and
Finance Committee and shall end on January 30th of the year the terms are due to
expire. No Audit and Finance Committee member shall serve more than two
consecutive terms unless he or she has been appointed to the committee to fill an
unexpired term of less than two years.
B. The appointment, reappointment and rules governing incumbent members of the
Audit and Finance Committee are governed by the Resolution of the City Council
which governs advisory bodies.
2.88.040 Members–Vacancy Prior to Expiration of a Term.
If a vacancy occurs other than by expiration of a term, it shall be filled by the City
Council’s appointment for the unexpired portion of the term.
2.88.050 Chairperson.
The committee shall elect its chairperson and vice chairperson from among its members
and shall appoint a secretary. Terms of the chairperson and vice chairperson shall be for
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one year. Upon approval of the City Council, the City Manager may appoint a secretary
who need not be a member of the committee.
2.88.060 Meetings.
A. The Audit and Finance Committee shall establish a regular time and place of meeting
and rules of conduct thereof and shall hold at least one regular meeting quarterly.
B. A majority of the Audit and Finance Committee shall constitute a quorum for the
purpose of transacting the business of the committee.
2.88.070 Compensation–Expenses.
Members shall serve on the Audit and Finance Committee without compensation, but
all necessary expenses reasonably incurred by them while acting in their official
capacity shall be paid by appropriate action of the City Council.
2.88.080 Majority Vote Required.
A majority vote of the quorum is required to approve a recommendation on any matter
that is presented to the committee which requires a vote.
2.88.090 Records.
The committee shall keep an accurate record of its proceedings and transactions and
shall render such reports to the City Council and Planning Commission as may be
required. These records shall be filed with the City Clerk.
2.88.100 Duties–Powers–Responsibilities.
The powers and functions of the Audit and Finance Committee shall be as follows:
A. To review the annual audit report and management letter;
B. To recommend appointment of auditors;
C. To review the Quarterly Treasurer’s investment report;
D. To recommend a budget format;
E. To review City investment policies and internal controls of such policies;
F. To recommend appointment of internal auditors;
G. To review the City’s internal controls and internal audit reports;
H. To review quarterly Fraud, Waste, and Abuse Program reports;
I. To review the use of artificial intelligence in the City’s financial reporting, internal
controls over financial reporting, risk management, and compliance.
2.88.110 City Staff Assistance.
The Audit and Finance Committee shall have available to it such assistance of City staff
as may be required to perform its functions, the staff assignments and administrative
procedures to be under the general direction and supervision of the Director of Finance.
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2.88.120 Procedural Rules.
The Audit and Finance Committee may adopt from time to time such rules of
procedure as it may deem necessary to properly exercise its powers and duties. Such
rules shall be subject to approval by the Council before becoming effective. All such
rules shall be kept on file with the chairperson of the Audit and Finance Committee, the
Mayor, and the City Clerk and a copy thereof shall be furnished to any person upon
request.
2.88.130 Effect.
Nothing in this chapter shall be construed as restricting or curtailing any powers of the
City Council or City officers.
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CITY OF CUPERTINO
Agenda Item
Subject: Consider approval of response to the 2025-2026 Civil Grand Jury of Santa Clara County
Report entitled VTA’s Management and Oversight of BART Silicon Valley Phase II (“Civil Grand Jury
Report”)
Review, discuss and approve the City of Cupertino’s response to that Civil Grand Jury Report.
CITY OF CUPERTINO Printed on 8/26/2026Page 1 of 1
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01276.0002 2185207.2
CITY COUNCIL STAFF REPORT
Date: September 1, 2026
Subject
Consider approval of response to the 2025-2026 Civil Grand Jury of Santa Clara County
Report entitled VTA’s Management and Oversight of BART Silicon Valley Phase II (“Civil
Grand Jury Report”)
Recommended Action
Review, discuss and approve the City of Cupertino’s response to that Civil Grand Jury
Report.
Background
On June 17, 2026, the 2025-2026 Civil Grand Jury of Santa Clara County released the Civil
Grand jury Report (Attachment A). Concerns discussed in the Report include: financial
risks, oversight concerns, coordination with BART, board experience and continuity, and
public communication.
The City of Cupertino, along with the other cities in Santa Clara County that appoint
member to the VTA Board of Directors, has been asked to respond only to the findings
and recommendations pertaining to board experience and continuity, which includes
Findings 6 and 7, and Recommendations 6 and 7, listed below, with our suggested
response.
Suggested Response
Pursuant to California Penal Code section 933(c), the City must respond to these findings
and recommendations by September 15, 2026. Below is a draft suggested response for the
City Council’s consideration.
Finding 6
VTA Board Appointing Authority Groups 2 through 5 often do not follow VTA
Administrative Code (Section 2-14) admonitions to “appoint individuals with
appropriate experience and qualifications in transportation” and to “reappoint
representatives to consecutive terms.”
Response: Agree.
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01276.0002 2185207.2
Recommendation 6
VTA Board Appointing Authority Groups 2 through 5 should certify to the VTA Board
that they will adhere to VTA Administrative Code (Section 2-14) admonitions, regarding
Board member expertise and appointment to consecutive terms. This should be
implemented by December 31, 2026.
Response: Agree. This should be implemented by December 31, 2026.
Finding 7
VTA Board Appointing Authority Groups 2 through 5 have different processes for
making Board appointments.
Response: Agree.
Recommendation 7
The cities represented in Appointing Authority Groups 2 through 5 should agree on a
uniform process for making Board appointments. This should be implemented by
December 31, 2026.
Response: Agree. VTA Board Appointing Authority Groups 2 through 5 should consider
developing a uniform process of making VTA Board appointments that includes a
standard weighting system of various metrics relevant to the VTA’s purpose. Such
metrics might include: board candidates’ prior appointment to or experience with the
VTA Board to enhance continuity and institutional memory; board candidates’ prior
expertise with or education in urban transit systems generally; board candidates’
willingness and ability to attend transit board trainings offered by industry experts; and
board candidates’ other relevant experience with large regional boards. This should be
implemented by December 31, 2026.
Once a response is approved by the City Council, the Interim City Attorney will forward
the respond to the Presiding Judge of the Santa Clara County Superior Court.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
City Work Program (CWP) Item/Description
None.
Council Goal:
Public Engagement and Transparency
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01276.0002 2185207.2
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: Floy Andrews, Interim City Attorney
Reviewed by: Tina Kapoor, City Manager
Lauren Sapudar, City Clerk
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
A. 2025-2026 Santa Clara County Civil Grand Jury Report VTA’s Management
and Oversight of BART Silicon Valley Phase II
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2025-2026 Santa Clara County Civil Grand Jury
VTA’s Management and Oversight of BART
Silicon Valley Phase II
June 17, 2026
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Page 1 of 40
VTA’S MANAGEMENT AND OVERSIGHT OF BART SILICON VALLEY PHASE II
T ABLE OF CONTENTS
SUMMARY ................................................................................................................................... 2
BACKGROUND ........................................................................................................................... 3
METHODOLOGY ....................................................................................................................... 7
INVESTIGATION ........................................................................................................................ 8
Financial Risks .......................................................................................................................... 8
Oversight Concerns ................................................................................................................ 13
Coordination with BART ....................................................................................................... 21
Board Experience and Continuity ......................................................................................... 22
Public Communication ........................................................................................................... 25
CONCLUSION ........................................................................................................................... 26
FINDINGS AND RECOMMENDATIONS ............................................................................. 27
REQUIRED RESPONSES......................................................................................................... 31
APPENDIX A: BART Management Letter ............................................................................. 32
CONFLICTS ............................................................................................................................... 34
REFERENCES............................................................................................................................ 34
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VTA’S MANAGEMENT AND OVERSIGHT OF BART SILICON VALLEY PHASE II
SUMMARY
The Santa Clara Valley Transportation Authority (VTA) project to extend rapid transit rail service
through downtown San José is controversial and the most costly and complex project it has ever
undertaken. Known as BART Silicon Valley Phase II (BSVII), the $12.7 billion project extends
rail service six miles and includes a large, single-bore underground tunnel and will take 10 years
or more from 2026 to complete (VTA, March 2024).
Despite significantly reduced ridership projections and uncertainty about funding sources for both
capital and operating costs, VTA has awarded major construction contracts, including for the
construction of a launch structure to stage a specialized one-of-a-kind Tunnel Boring Machine
(TBM), which will be owned by VTA. Over the next few years, VTA anticipates awarding further
construction contracts worth billions of dollars. To reduce uncertainty, the spokesperson for an
independent peer review of the project urged VTA to move quickly to “build as much as you can,
as fast as you can” (VTA Special Board Meeting, 2025). Such an approach assumes that there will
be political will and taxpayer support to finish an incomplete project regardless of cost increases,
delays, or reduced ridership.
The VTA’s Board of Directors (Board) has recognized the need for additional oversight and
guidance, but the Board has failed to exercise its obligation to provide the strategic direction
needed for a successful project. The Oversight Committee it created has been left to define its own
role. It was not required to, and does not, provide reports that share available independent analyses
of critical issues. The Oversight Committee does not routinely make policy recommendations to
the Board and does not hold VTA staff accountable for providing the timely analysis it has
requested.
The 2025-26 Santa Clara County Civil Grand Jury (Civil Grand Jury) investigated the role of the
VTA Board, its Oversight Committee, its staff, and officials in the management and oversight of
the BSVII project.
This report identifies financial challenges, risks, and accountability issues that VTA must address
to earn the public’s trust in delivering the Bay Area Rapid Transit (BART) extension to Silicon
Valley and to secure support for future sales tax measures.
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VTA’S MANAGEMENT AND OVERSIGHT OF BART SILICON VALLEY PHASE II
BACKGROUND
The Valley Transportation Authority is a transportation agency established by state law. It is
responsible for operating public transit services, including buses, light rail, and paratransit within
Santa Clara County. In addition to public transit, VTA is a planning and funding agency for
transportation infrastructure projects throughout Santa Clara County. As established by the
California Public Utilities Code Sections 100060-100070, the VTA is governed by a 12-person
Board of Directors composed of elected officials appointed by the County of Santa Clara (County)
and the cities in Santa Clara County, who each serve two-year terms. The Board has many
responsibilities and its monthly meeting agendas are lengthy.
The San Francisco Bay Area Rapid Transit District provides regional commuter rail service and is
governed by a nine-person Board of Directors elected to four-year terms from districts representing
San Francisco, Alameda, and Contra Costa counties. As part of its larger regional system, BART
operates the commuter rail service within Santa Clara County.
By contract with BART, VTA is solely responsible for paying the capital and net operating costs
of extending commuter rail service into Santa Clara County (BART and VTA, Comprehensive
Agreement, 2001). Although the County was not included in the legislation establishing BART,
voters of Santa Clara County supported three sales tax measures which provided funds to plan,
build, and operate the extension of BART to Santa Clara County. Today, 1.625% of sales tax
collected in Santa Clara County supports VTA and other local jurisdictions (see Table 1). If a
currently proposed measure qualifies for the ballot, in November 2026, voters will decide whether
to approve an additional 0.5% sales tax to fund local transit, which would increase the County’s
base sales tax rate from the current 9.75% to 10.25%.
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VTA’S MANAGEMENT AND OVERSIGHT OF BART SILICON VALLEY PHASE II
Table 1: Countywide Sales Tax in Santa Clara County, Effective April 2026
Description Sales Tax % Expiration Funding Purpose
California Base 7.250% No Expiration
State General Fund
Local Revenue Fund
Local Public Safety
Health & Social Services
1976 Measure A 0.500% No Expiration Transit: VTA
2000 Measure A 0.500% 2036 Transit: VTA, BART Silicon
Valley
2008 Measure B 0.125% 2042 Transit: BART Silicon Valley
2016 Measure B 0.500% 2047
Transit: VTA +
County/City/Caltrain/Caltrans
Infrastructure
2012 Measure A 0.125% No Expiration County General Fund
2020 Measure RR 0.125% 2050 Transit: Caltrain
2026 Measure A 0.625% 2031 General incl. Healthcare
Total Base Sales Tax
Rate 9.750%
Data extracted from: California Department of Tax and Fee Administration. 2026.
(https://cdtfa.ca.gov/formspubs/cdtfa105.pdf); VTA Annual Comprehensive Financial Report.
Page 3-10. 2024. (https://www.vta.org/sites/default/files/2024-12/Annual-Comprehensive-
Financial-Report-ACRF-FY-2024.pdf).
Note: Some cities have higher voter-approved rates in addition to the County base rate;
Highlighted section of the table refers to sales tax measures that fund VTA.
The first phase of BART to Silicon Valley extended service to Milpitas and then to the Berryessa
Transit Center (Berryessa). Construction started in 2012 and was completed in 2020. Ridership for
Phase I has not met forecasts, and due to operational, maintenance, and depreciation expenses,
VTA has experienced significant financial losses. According to data reviewed by the Civil Grand
Jury, BART to Silicon Valley Phase I has lost an average of $69 million annually during the first
five years of operation.
The second phase consists of a six-mile, four-station extension from Berryessa through downtown
San José to the City of Santa Clara. For this phase, VTA is targeting completion by 2037. As a
condition of federal funding, the Federal Transit Administration (FTA) has appointed a Project
Management Oversight Consultant (PMOC). The PMOC uses a more conservative schedule and
forecasts completion in 2039 (AtkinsRéalis USA Holdings LLC, 2026).
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At an early planning stage in 2014, the BSVII project cost was estimated at $4.7 billion. By 2020,
the cost estimate increased to $6.9 billion. In 2022, based on the PMOC’s projected cost analysis,
VTA submitted an estimate of $9.1 billion to the federal government for an Early Start Grant. In
October 2023, VTA estimated the construction cost at $12.2 billion with operations to begin in
2036. The most recent estimate is $12.7 billion, and operations are pushed back to 2037 (VTA
Auditor General Report, January 2024).
The project's funding sources include federal and state grants, as well as local revenues from voter-
approved sales tax measures. All the funding sources are subject to risks, which are identified in
this report. Figure 1 shows the funding sources with $700 million to be determined (TBD) and
$375 million from a potential ballot measure in November 2026.
Figure 1: Components of $12.7 Billion in BSVII Funding Sources as of April 2026
Source: vtabart.org website (accessed April 9, 2026)
Although two years earlier, VTA had asked for a federal commitment of $6.3 billion, in August
2024, the FTA announced that its share of funding would be capped at $5.1 billion (Geha, 2024).
VTA was forced to increase its reliance on local sales tax revenue and still faced a gap of
approximately $700 million (VTA, Summer 2025). To reduce project costs, VTA has been
studying design changes while maintaining the full six-mile extension with four stations. Options
discussed by VTA staff and officials include (VTA, November 11, 2024):
• Simplifying station configurations;
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• Modifying the Santa Clara Newhall Yard and Maintenance Facility;
• Modifying the tunnel and station ventilation systems;
• Substituting a surface parking lot for a parking structure;
• Reconfiguring the tunnel to use less concrete and steel.
In addition, the funding strategy assumes $375 million from the yet-to-be-approved regional sales
tax measure for a total outstanding gap of $1.075 billion.
Due in part to the significant increase in estimated cost and a perceived lack of communication
about the project’s cost, risks, and schedule, the Board conducted a workshop in October 2023 to
review the project’s status. At this workshop, individual Board members expressed a lack of
confidence in the VTA staff’s management of the project and requested a new system of oversight
and project management.
In response, the Board chair established an Ad Hoc BART Silicon Valley Phase II oversight
committee (Oversight Committee) responsible for overseeing all aspects of the project, focusing
on a full, independent, and transparent review of costs, funding, risks, and completion schedule.
The Oversight Committee’s bylaws later stated that its purpose was to provide “guidance and
oversight” of the project (VTA, April 4, 2024).
The VTA independent auditor general was tasked with providing staff support to the Oversight
Committee and was authorized to contract with Subject Matter Experts (SMEs) to independently
review and comment on VTA staff recommendations regarding costs, risks, and schedule. In turn,
the Oversight Committee authorized the SME firm, Gall Zeidler (GZ), to independently assess the
risks and viability of cost-saving alternatives.
In a 2001 Agreement, VTA and BART agreed to cooperate in the project’s planning, design, and
construction. They established a series of interagency committees, the latest of which is the Joint
VTA/BART Working Committee, which depending on the availability of its members, is
scheduled to meet quarterly. BART staff members have been assigned to co-locate with VTA
engineers to participate in the preparation and review of BSVII designs in accordance with the
agreed Project Design Criteria Manual. According to the BART Inspector General, VTA has
reimbursed BART $19.2 million through 2025 for the cost of the assigned employees (BART,
December 19, 2025). In August 2025, the BART assistant general manager, operations, rejected
some of VTA’s proposed design changes and scope reductions and complained about inadequate
coordination (see Appendix A). The BART inspector general issued a report in December 2025
that also raised concerns about inadequate coordination and criticized VTA’s communication with
BART officials (Id.).
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METHODOLOGY
The Civil Grand Jury reviewed every meeting of the BSVII Oversight Committee, as well as select
VTA Board meetings. This included reviewing agendas, minutes, agenda item reports, public
comment submittals, and associated discussions.
In addition, the Civil Grand Jury conducted 17 interviews of officials from VTA, BART, and the
State of California. The Civil Grand Jury also reviewed publicly available documents as described
in the reference section, as well as documents requested from VTA and submitted to the Civil
Grand Jury.
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INVESTIGATION
The Civil Grand Jury investigation of the BSVII project covered critical aspects of VTA’s
management and oversight, including:
• VTA’s funding strategy and its reliance on voter-approved sales tax measures, some of
which expire before completion of the project, and some of which have yet to be approved;
• The establishment of a separate Oversight Committee which provides guidance on the
BSVII project and how it evaluates independent analyses provided by the VTA auditor
general, contracted SMEs, and the federally mandated PMOC;
• The contractual and practical requirement to closely coordinate with BART, which will
serve as the system operator;
• The impact of the VTA Board’s governance structure on the effectiveness of strategic
direction, management, and oversight of the project;
• VTA’s approach for keeping the public informed of costs, risks, and schedule.
Financial Risks
The 10-year project completion timeline of BSVII exposes VTA to financial risks that require
careful, ongoing assessment of capital and operating costs, including that:
• Rising labor and material costs, combined with aggressive construction methods and
schedules, may increase total project costs and strain the budget’s contingency for
unforeseen risks and unexpected expenses;
• Delays or reductions in state and federal funding will create greater pressure to rely on
local funding sources or scale back the scope of the project;
• Lower ridership levels will increase VTA’s ongoing obligation to pay net operating costs,
which would necessitate service level reductions or voter approval of new or extended sales
tax measures;
• Failure to maintain a cash-flow model exclusive to BSVII, means that contracting options
for accelerating work may not be able to be financed with available resources.
Risk of Increased Costs of Labor and Materials
The FTA fiscal year 2025 New Starts Financial Assessment report for BSVII stated the VTA
inflation estimate was optimistic. If labor and material costs were to rise above those estimated in
VTA’s budget, it could lead to funding shortfalls (FTA, 2024).
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The VTA auditor general’s May 1, 2025, report to the Board also identified BSVII financial risks
associated with project construction costs. The report found that the assumptions and historical
data underlying VTA’s financial plan could be more robust to enable the Board and the public to
evaluate the financial risk associated with the potential cost increases (VTA, 2025).
Another factor that increases the difficulty in predicting materials and labor costs is the possible
extension of the 2037 project completion date. The longer timeline for BSVII increases the
likelihood that future costs will differ from current estimates, thereby increasing financial risk.
Local, State, and Federal Funding Risks
The capital cost of construction and the net operating costs are to be paid by VTA from specific
revenue sources, some of which are grants with fixed amounts.
The financial risks identified by the Civil Grand Jury have been experienced by other major transit
agencies. For example, the various rail projects of the Los Angeles County Metropolitan
Transportation Authority (LA Metro) faced escalating cost estimates, reductions in federal
funding, cuts into smaller construction segments to match available funding, and shifting agency
priorities (Shalby, 2026).
Local Funding Risks
VTA’s capital financing plan calls for the 2016 Measure B to pay $2.5 billion and for the 2000
Measure A to pay $2.0 billion of the estimated $12.7 billion BSVII project. Measure A expires in
2036, before BSVII is expected to be completed. Measure B expires in 2047 (VTA, About 2016
Measure B, n.d.). As the project’s cost estimates have evolved, so have the planned funding
sources. Measure B has become a much more significant source of proposed funding.
Because Measure B also funds bus transit, local streets, and highway projects, there are built-in
limitations on the amount available to close a BSVII financing gap. Measure B limits spending on
BSVII to 23.8% of net sales tax revenue over its 30-year life (FTA, 2024). Net sales tax revenue
(defined as Program Tax Revenue in the measure) is calculated as the amount remaining after
deducting administrative costs and any debt service.
To close current and potential future funding gaps, VTA could issue bonds to be repaid from
Measure B sales tax revenue. However, this would reduce the revenue available for other voter-
approved projects. Every dollar spent on debt service for BSVII is a dollar that cannot be spent on
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the other transportation projects approved by the voters. Because of bond issuance and interest
costs, the total project costs would exceed the current estimate of $12.7 billion.
Another risky approach to filling funding gaps would allow the Board to change the rules and
permit a greater percentage of Measure B net sales tax revenue to be used for BSVII. One VTA
official acknowledged to the Civil Grand Jury that this would be a “heavy lift” because VTA would
first have to notify all the local agencies of the proposed increase in the percentage limit and then
approve it by a ¾ vote of the Board (9 of 12 Board members). The County and the cities that have
planned other transportation measures are likely to object to reduced funding for their projects.
Of course, more Measure B funds could become available to support the capital costs of BSVII if
the expected sales tax revenue exceeds previously anticipated levels. While early projections were
based on 2016 economic conditions, it is important for the strategic funding plan that the sales tax
forecast be updated regularly. The Civil Grand Jury was informed that VTA has ordered an updated
forecast.
Because two key sales tax measures are set to expire, several VTA officials stated in interviews
that they would simply place a measure on a future ballot for voter consideration if an extension
were needed. Given the current sales tax rates applicable within Santa Clara County and the need
for management and oversight reforms identified in this report, there is a risk that voters may not
approve such a measure.
State Funding Risk
As of April 2026, the capital construction funding strategy required $1.5 billion from two State of
California grants. The VTA has received commitments for nearly $200 million of that total. The
sources of funding are the Transit and Intercity Rail Capital Program (TIRCP) and transportation
funds administered by the Metropolitan Transportation Commission (MTC), both of which may
be affected by a recent state decision to provide a bridge loan to Bay Area transit agencies (MTC,
2026).
In February 2026, the California legislature appropriated $590 million from the same TIRCP
account to provide a 12-year loan to MTC. These loan proceeds will be made available to San
Francisco Municipal Transportation Agency, AC Transit, BART, and Caltrain to help address a
greater need for public transit subsidies. The agencies are required to repay the loan over 12 years
(MTC, 2026).
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The state justified the loan on the basis that the transit agencies would be able to stabilize their
financial situations and avoid service reductions pending the anticipated approval in November of
a regional sales tax measure. If the regional measure does not pass, or if for any other reason the
agencies do not repay the loans on time, the timing of the receipt of funding to VTA might create
some cash flow risk for the project.
Further, the TIRCP account itself is funded by payments from private parties who agree to
purchase pollution credits in the state’s Cap and Invest program. The program’s future is uncertain
in light of federal changes to environmental regulations and pending legal challenges from the
State of California (California State Transportation Agency, n.d.).
Federal Funding Risk
In August 2024, the FTA advised VTA that the federal government’s total contribution to the
project would be limited to $5.1 billion. To receive these funds, VTA plans to apply for a Full
Funding Grant Agreement (FFGA) by the end of 2026.
Federal support for large-scale rail projects is uncertain. In 2025, the FTA canceled a $4.2 billion
commitment to the California High-Speed Rail Project (Shalby, 2025). VTA’s lobbyists have
suggested delaying the FFGA application until similar requests from other states are resolved.
Considering the political, economic, and budgetary conditions of the United States, approval of
VTA’s request for an FFGA is highly uncertain. It may be delayed, reduced, or denied.
Low Levels of Ridership Could Increase VTA’s Future Costs
BART ridership on the current regional system has not recovered to pre-pandemic levels.
Ridership in January 2026 remains only 48% of the levels in January 2019 (BART, January 2026;
BART, 2019). Recovering ridership may prove difficult due to the growth of hybrid work patterns.
The Civil Grand Jury also reviewed the forecasts for the first phase of the project, which included
the new Milpitas and Berryessa stations. For January 2026, ridership was 86% below estimates
(see Table 2).
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Table 2: BART Ridership at Milpitas and Berryessa Stations
Forecast for Average Daily
Weekday Ridership for
June 2021 at launch
Actual Ridership,
January 2026
Ridership/Day 20,110 2,789
Source: Joint VTA/BART Working Committee Meeting, December 4, 2020; BART February
2026 Monthly Ridership Snapshot.
Note: VTA created forecasts in 2020, expressed as rides per day. BART actuals are based on
recorded station entries and exits. To normalize BART actuals to the VTA forecast, entries and
exits were averaged to produce a daily ridership figure.
An overall decrease in ridership has led BART to project a $376 million budget deficit for FY2026-
27. To seek additional revenue, BART is relying on a 0.5% additional sales tax measure on the
November 2026 ballot that would begin in 2027 and remain in place for 14 years. If the ballot
measure does not pass, BART has proposed closing up to 15 stations and reducing service hours
and train frequency (BART, February 26, 2026). Ironically, the proposed station closures would
not affect Santa Clara County because VTA is solely responsible for the net operating costs.
According to VTA records reviewed by the Civil Grand Jury, for the first three years of operation,
VTA forecasts annual average costs of $274 million for operations, maintenance, and capital costs.
Average fare revenue is forecast at $60 million, offsetting VTA's financial obligation to BART,
resulting in an average annual financial loss of $214 million. Any drop in ridership will lead to
further financial losses.
The Need for a BSVII Cash Flow Model
With a price tag of $12.7 billion, BSVII is the largest public infrastructure project in Santa Clara
County (Aragon, 2025). Nearly 60% of the planned funding sources include revenue from grants
that will not be distributed in advance but will be reimbursed in accordance with each grant’s draw
schedule (See Figure 1). The timing of those cash inflows must be carefully matched with the
timing of payment schedules for construction contracts worth billions of dollars.
VTA staff is evaluating different approaches to contracting the construction work. Alternatives are
being evaluated for the following reasons: 1) to identify segments of work that could be bid out
separately to accelerate the overall schedule; and 2) to identify segments for which there is a greater
likelihood of strong competitive bids. For each contract, the cash outflows will be specified and
must be carefully matched with the cash inflows.
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A cash flow model that matches receipts and expenditures for BSVII would enable VTA decision-
makers to fully evaluate the alternative approaches being studied. However, VTA officials have
advised the Civil Grand Jury that such a model has not yet been developed. A cash flow model is
necessary to avoid unplanned delays from cash shortfalls.
Oversight Concerns
VTA Board Recognizes That Oversight Must be Improved
Independent reports and audits have identified problems with project management and VTA Board
oversight, including those identified by a prior Civil Grand Jury, the California State Auditor, and
the PMOC (AtkinsRéalis USA Holdings LLC, 2026). VTA’s cost-estimation practices, along with
its lack of transparency around changes to project scope and cost, were identified as significant
deficiencies. VTA’s oversight and management of the BSVII project have also been heavily
criticized by the media, in public comments presented at Board meetings, and in letters to the editor
of multiple local publications.
VTA Board Outsources Guidance and Oversight of the BSVII Project
Following a workshop on the project’s direction in October 2023, the VTA Board Chairman
announced the creation of an Ad Hoc BART Silicon Valley Phase II Oversight Committee (VTA,
2023).
However, only the Board can make binding decisions on the project’s scope, funding, risks,
schedule, and contracting approach. While ultimately accountable itself, the Board nonetheless
effectively delegated oversight to a committee without providing clear direction. By abdicating its
responsibility to set its expectations of how the Oversight Committee can best support the Board,
the committee has been left to set its own course. That course does not keep the Board fully
informed of issues raised by independent experts or the PMOC, hampering its ability to make the
best decisions about the project's funding and schedule.
At its meeting on January 15, 2026, the Oversight Committee adopted what it called a revised
charter intended to clarify the lines of communication and relationships among the auditor general,
SME, VTA staff, and Oversight Committee (VTA, January 15, 2026). Members of the Oversight
Committee had expressed concern about a perceived lack of coordination between VTA staff and
the SME. Nonetheless, the question remains: Is the role of an SME to provide the Board with an
independent review of VTA staff recommendations as originally intended, or is it to help VTA
staff improve their recommendations? Notably, in the following excerpt, the Charter requires the
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auditor general to document issues raised by the SME and the VTA staff but does not require that
the full Board be advised of the critical issues:
To ensure transparency and balanced oversight, selected advisory input from SME will be
documented in Oversight Committee materials. Where consensus exists between the SME
and the Project Team, it will be noted. Where minority or dissenting views are expressed,
the AG [auditor general] will explicitly record final input received alongside the majority
view (VTA Oversight Committee Charter, 2026).
During Oversight Committee meetings, there are few deliberations or actions to provide collective
guidance or oversight, leaving individual members to raise questions and propose guidance for
VTA staff to consider. VTA staff also receives input from individual members in private pre-
meeting briefings. As a result, the full Board does not benefit from Oversight Committee analysis,
and the public is not fully informed about individual Board member perspectives.
The Committee Has Two Purposes: Guidance and Oversight
“Guidance” suggests that the committee helps the Board establish a strategic direction and
recommend actions to keep the project on track. “Oversight,” on the other hand, is a separate
function that ensures VTA staff is accountable for following the Board’s direction in an efficient
and effective manner. “Guidance” looks forward. “Oversight” monitors implementation as it
happens.
Better at Oversight than Guidance
The Oversight Committee requires VTA staff to produce a comprehensive monthly report detailing
the financing and construction progress of the BSVII project. The auditor general provides
insightful periodic reports on his independent review of the project’s costs, risks, and schedule.
The VTA staff’s monthly reports address the information gap identified in the auditor general’s
January 2024 report. As a result, the Oversight Committee can effectively monitor compliance
with the Board’s direction.
However, the Oversight Committee often fails to provide guidance on issues critical to future
strategic direction.
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Strategic Guidance on Critical Issues is Informal, Intermittent, and Often Late
VTA staff routinely provide private briefings to Oversight Committee members prior to meetings.
Those briefings allow VTA staff to explain and advocate for their recommendations and to receive
input and questions from individual members. Occasionally, some agenda materials for an
Oversight Committee meeting are not published with the rest of the agenda because VTA staff
members will modify presentations up to the last minute based on what they have heard in private
briefings.
The Oversight Committee has established an informal standard of limiting its once-monthly
meetings to no more than two hours, and meetings often do not begin on time. At the meetings,
VTA staff often deliver lengthy presentations on issues for which it will subsequently seek Board
approval, leaving little time for committee deliberations.
During these presentations, only a few members ask questions, and rarely does a committee
member propose a policy recommendation that the Oversight Committee might take action on.
Individual Oversight Committee members are given the opportunity to express support or concern
about a proposed VTA staff position, providing VTA staff with some insight into how to frame
their recommendations to the Board.
The Oversight Committee receives independent analyses from the VTA auditor general, its
contracted SME, and the PMOC. The committee often receives lengthy written comments from
the public but limits oral comments to one minute. Members of the committee rarely comment on
materials received from the public, many of which are extensive critiques of the VTA staff
recommendations. Following each meeting, the Oversight Committee chair submits a short report
summarizing discussion topics, which is placed on the VTA Board’s consent calendar.
Following presentation to the Oversight Committee, formal VTA staff recommendations are made
to the VTA Board, but without the benefit of a summary or synthesis of the alternative perspectives
from the auditor general, SME, PMOC, or informed public comment.
The Civil Grand Jury identified three examples of policy issues for which guidance was needed
but delivered inadequately. One of the examples, the single-bore versus twin-bore issue, illustrates
both the failure of the committee to make recommendations and the VTA staff’s failure to follow
through on committee requests in a timely manner.
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Example of Inadequate Guidance: The KST Contract Decision
The Oversight Committee endorsed a major contract change without providing independent
analysis, articulating its rationale, or conveying identified risks to the Board.
VTA had issued a contract to a construction consortium, Kiewit Shea Traylor (KST), using a
“progressive/design/build” approach, under which KST would design the tunnel project and, after
reviews by VTA and its construction management consultant, KST would build it. By the spring
of 2025, VTA believed that KST’s proposed design could significantly increase the project’s
estimated cost by up to $1 billion and that it would be preferable to engage in a competitive bidding
process for the remaining tunnel work. In a more traditional contract approach, VTA would prepare
the design specifications and contract conditions. To accomplish this, it was necessary to limit the
contract with KST to only the work required to prepare for the TBM, which VTA would own but
make available to the tunneling contractor to operate and maintain.
At its June 12, 2025, meeting, VTA staff presented its proposal to modify the KST contract to the
Oversight Committee, which unanimously endorsed it. Two weeks later, the VTA Board met and
approved VTA staff recommendations. Although the VTA staff agenda report did include a
reference to the Committee’s recommendation, it did not include the risk analysis that had been
reviewed by the Committee. The Oversight Committee’s regular report to the VTA Board was
placed on the consent calendar and simply reported the committee’s concurrence with the VTA
staff recommendation. There was no report or analysis laying out the reasons for the Oversight
Committee’s concurrence or the SME’s risk assessment. Therefore, the Board made its decision
without a complete understanding of the risks.
Example of Inadequate Guidance: The Twin-Bore versus Single-Bore Decision
The Oversight Committee retroactively requested a side-by-side analysis of tunnel options through
Downtown San José.
A preliminary design controversy was whether to tunnel two smaller bores for the downtown San
José underground tracks or to tunnel a single larger bore at greater depth. Downtown businesses
had raised concerns that the twin-bore approach would require additional work and disrupt their
operations during construction.
BART initially opposed the single-bore tunnel approach because it differed from its existing,
smaller twin-bore tunnels. However, the BART inspector general reported that in the spirit of
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cooperation, BART officials consented to the single-bore approach after being assured that
operational and safety concerns would be met (BART, December 19, 2025).
In December 2022, VTA approved the fabrication and purchase of a large TBM for $76 million,
effectively locking in the single-bore approach. In a news article dated November 7, 2023, in the
Mountain View Voice, San José Mayor Matt Mahan was quoted as saying: “There is no turning
back now” (Hicks, 2023).
Nonetheless, individual Board members and informed public commenters continued to raise
questions about whether a twin-bore approach might be cheaper, faster, and safer for BART
operations. In response, members of the Oversight Committee commissioned an analysis of the
two options for costs, risks, and impact on schedules.
In September 2025, more than 18 months after the request, VTA and its engineering consultants
presented their analysis to the Oversight Committee, confirming the single-bore approach.
Although it had requested the analysis, the Oversight Committee did not make a recommendation
to the Board. In October 2025, the Board was presented with the VTA staff and consultants’
analysis and confirmed the single-bore approach by declining to take steps to amend the
environmental documents or modify the tunneling contracts.
Example of Inadequate Guidance: Scenario 1 versus 1a Decision
In October 2025, VTA decided on an approach to the construction of the tunnel without the benefit
of the SME’s analysis that the Oversight Committee had requested.
Before design work could progress to a more advanced level, the VTA Board needed to decide
between two alternatives for staging the actual tunneling work. The SME had suggested that
concurrent tunneling from both ends could reduce costs and accelerate the schedule (VTA, June
12, 2025). The two options were labeled “Scenario 1” (a straight-through tunneling using the larger
TBM from west-to-east) and “Scenario 1a” (an option of concurrent tunneling starting at both the
east and west portals using two TBMs).
Although this would require two TBMs, the east-to-west work could be done simultaneously with
a smaller-bore tunneling machine. Further, the SME reported that a smaller-bore TBM was readily
available and would require less lead time than the TBM being fabricated in Germany.
Because the Oversight Committee considered the potential benefits significant, the committee
asked both VTA staff and the SME to analyze the options and prepare a recommendation. On
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August 4, 2025, the Oversight Committee authorized an expenditure of $110,000 and directed the
auditor general to contract with GZ for the requested work. GZ presented interim reports on
September 11, 2025, and October 9, 2025, and promised to deliver its completed report at the
November 2025 meeting of the Oversight Committee.
VTA staff subsequently presented its analysis and recommendations to the Oversight Committee
on October 9, 2025. Although the Project Manager stated that the VTA staff was aware of some
of GZ’s preliminary analysis (especially differing assumptions about the rate at which each of the
two TBMs can move forward when digging a tunnel), VTA staff requested a Board meeting to
decide between the two alternatives. In prior presentations to the Oversight Committee, VTA staff
said that the analysis would be presented at a Board “workshop” (at which no formal action could
be taken). However, a special meeting of the Board was called for October 17, 2025, and VTA
staff made its recommendations to the Board, neglecting to advise the Board that the Oversight
Committee was still awaiting the GZ analysis that the Committee had authorized.
The Oversight Committee failed to present any report or recommendation at the special meeting.
As a result, the Board adopted ‘Scenario 1’ without the benefit of an independent analysis of the
risks.
On February 12, 2026, four months after the Board made its decision, the SME presented his
written report analyzing the options and raising concerns that should have been considered before
the decision.
VTA Staff Accountability for Responding to Oversight Committee Member Requests
The auditor general maintains two types of monitoring reports: a tracking report that lists the
requests of individual committee members for information or analysis, and a work plan that lists
the schedule for upcoming formal reports, including risk assessments such as financing and
procurement risks. Both monitoring reports establish a due date, but the deadlines are often not
met.
During public meetings, Oversight Committee members rarely discuss the tracking report or the
work plan and do not publicly comment on changes to the expected date in subsequent reports.
More importantly, neither the auditor general nor the Oversight Committee holds VTA staff
accountable for late responses to issues raised in the tracking report. Below, the Civil Grand Jury
presents two examples:
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Example of Lack of Accountability: Prolonged Delay in Analysis of Single-Bore versus Twin-Bore
The side-by-side analysis of two design options was not provided until more than 18 months after
it was first requested.
At the Oversight Committee’s first meeting in November 2023, a member of the public requested
that the committee order a cost and risk analysis of the single-bore versus twin-bore options, which
remained controversial following the VTA Board’s selection of the single-bore option in 2018. In
2023, the Chair of the Oversight Committee responded that such an “apples-to-apples” (side-by-
side) analysis would be one of the committee’s first tasks. Here are some of the subsequent
activities:
• At the committee’s meeting on January 19, 2023, two committee members formally
requested the “apples-to-apples” analysis and placed it on the committee’s tracking list.
(VTA, March 2025). At its meeting on June 13, 2024, the Project Manager reported that
the scope of the twin-bore analysis would be worked on and reported to the Board “over
the course of the summer.”
• At its meeting on August 8, 2024, a member of the public asked about the status of the
“apples-to-apples” analysis.
• At the September 12, 2024, Oversight Committee, the auditor general announced that VTA
staff had asked engineering design contractor Mott Macdonald to conduct the “apples-to-
apples” review.
• The March 2025 tracking report included a comment regarding the “apples-to-apples”
comparison: “These items are being evaluated as part of cost savings task force efforts with
participation from GZ” (VTA, April 2024).
• One year later, on September 11, 2025, Mott Macdonald presented its analysis of the twin-
bore versus single-bore options – nearly 22 months after the request was first discussed at
an Oversight Committee meeting – concluding that the single-bore option was preferred
(VTA, September 11, 2025).
Example of Lack of Accountability: An Alternative Strategy Some Call “Plan B”
Despite multiple requests for an alternative strategy to address risks associated with the federal
funding decision, VTA staff advised the Oversight Committee that it would wait until after the
federal decision.
Since the Oversight Committee meeting on October 9, 2025, committee members have stressed
the need for an alternative strategy in the event the federal government delays or denies the FFGA
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for the promised $5.1 billion. Some committee members asked whether a “Plan B” might include
reducing the number of planned stations or revising the funding strategy. VTA staff reported to
the Civil Grand Jury that there was reluctance to discuss a “Plan B” out of concern that the
discussion itself might jeopardize the FFGA. At public meetings, VTA staff dismissed requests
for an alternative funding strategy, instead reporting that an alternative plan should not be prepared
until the FTA made its decision in 2027. This is an example of the VTA staff’s dismissal of the
Oversight Committee direction.
Expediency of Decisions versus Rigorous Analysis
The Civil Grand Jury identified tension between VTA Board members’ competing goals: avoiding
delays in decision-making and requiring rigorous, independent analysis of costs, risks, and
schedule. In public meetings, the Project Manager has often stated that each month of delay adds
$20 to $30 million to the overall project cost (Dorsey, 2025).
There is a strong financial incentive to keep the project moving by advancing decisions
incrementally—approving one component at a time to show visible progress—without fully
evaluating how each step alters the project’s overall cost, scope, and risk. For a project of this size,
complexity, and cost, this piecemeal approach masks cumulative effects, increasing the likelihood
of cost escalation and delays. These should be identified and addressed through rigorous, front-
end analysis.
With two-year terms and constituencies limited to portions of the County, Board members may
understandably focus on immediate actions rather than the long-term, systemwide implications
that demand a coherent strategic plan.
The Role Assigned to the Auditor General
The Oversight Committee benefits from periodic risk assessments and audits performed by the
VTA auditor general on the BSVII project. However, by assigning the auditor general the
responsibility to also provide staff support to the Oversight Committee, VTA has created a
situation in which the auditor general is asked to provide an independent audit of prior decisions
while also assisting the committee in evaluating future policy and management decisions.
At the June 2025 public Board meeting, the auditor general stated that he sometimes feels like a
referee among the analyses provided by VTA staff, the SME, the public, and the PMOC. However,
the VTA Board is the final arbiter, not the auditor general.
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The Board is best served when it hears all relevant views on an upcoming decision and is presented
with options and a recommendation. The auditor general’s participation and input are critical, but
he should not be placed in the position of having to synthesize all the competing views, including
his own.
The auditor general is better placed to assist the Oversight Committee in its role of “oversight”
and less so in commenting on the Oversight Committee's “guidance” functions. Accordingly, the
Oversight Committee and the VTA Board would be better served if a VTA staff person were
assigned responsibility for staffing the committee. This person could be part of the General
Manager’s Office and should not report to the Project Manager. The position would be like that of
the chief of staff, which was recently assigned to support the chair of the Board.
Coordination with BART
Because the County of Santa Clara is not part of the BART District, the extension of rail service
to San José required a contract that established both VTA’s and BART’s commitment to cooperate.
Under the 2001 Cooperative Agreement, VTA is financially responsible for paying for the design,
construction, and operation of the segment in Santa Clara County (BART and VTA,
Comprehensive Agreement, 2001). BART retained approval authority over design elements that
affect operations, maintenance, and safety. To date, this has been accomplished through the joint
preparation of a Design Criteria Manual.
As recently as December 2025, BART’s Independent Office of the Inspector General (OIG) issued
a report titled: “Transparency & Communication Gaps in the BSVII Project.” The report
summarizes years of controversy over the single-bore versus twin-bore approach but
acknowledges that BART eventually agreed to the single-bore concept evaluated in the final
environmental impact statement. However, the BART OIG remained critical of the extent of
cooperation between the two agencies:
We also determined that the length of time since the project began, extensive media
coverage of the project, conflicting subject-matter opinions, and some public displeasure
with the single-bore design have created uncertainty about the project’s direction. We
concluded that gaps in transparency and communication, including limited public
discussions in recent years, have resulted in mixed messaging on a project that has evolved
over multiple decades (BART Independent Office of the Inspector General, 2025).
In August 2025, the lack of communication and cooperation was publicly exposed when a BART
official wrote a letter to VTA (Appendix A) specifically objecting to the consideration of reducing
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the size of the Newhall Yard and Maintenance Facility as a capital cost-saving measure. The VTA
Project Manager publicly acknowledged a failure to keep BART informed of design issues that
might impact BART’s operational efficiency and pledged to develop recommendations to the
administrative heads of both agencies on a more formal process to identify and resolve those issues
(VTA Oversight Committee, 2025).
Board Experience and Continuity
Since 2019, five audits and reports have critiqued VTA’s governance structure and recommended
a series of revisions to improve VTA’s capability to provide Board direction and oversight of the
BART extension. Those audits have included the 2018-19 Santa Clara County Civil Grand Jury in
2019; the Auditor of the State of California, in 2024; the BART Independent Office of the
Inspector General in 2025; RSM US LLC, a VTA subcontractor, in 2019; and the VTA Auditor
General in 2024. VTA has accepted and acted on most of the recommendations for governance
reform, except those relating to the terms and required experience level of Board members.
During the investigation of the BSVII project, sources repeatedly raised concerns about the level
of knowledge and decision-making ability of the full VTA Board, which is responsible for the
project’s success. Decisions made today will have a direct impact on its ultimate success. Diligent
oversight of its schedule, cost, progress, and scope is required.
According to the California Public Utilities Code, which established the VTA Board, “to the extent
possible, the appointing powers shall appoint individuals who have expertise, experience, or
knowledge relative to transportation issues” (Pub. Util. Code 10000 et seq).
VTA Board members are appointed to two-year terms by appointing agencies, organized into six
groups as detailed in Table 3. Appointing agency groups are established and defined by VTA
Administrative Code, which states “Appointing Authorities are strongly encouraged, where
possible, to: (1) appoint individuals with appropriate experience and qualifications in
transportation; (2) ensure that there is sufficient remaining time in the elected official’s term of
office to allow full completion of their term as a Director; and (3) reappoint representatives to
consecutive terms” (VTA Administrative Code § 2-13).
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Table 3: Appointing Authorities Composition of the VTA Board
Appointing
Agency
Group
Jurisdiction Represented Number of
Board Members
Method of
Appointment
Group 1 San José 5 members
1 alternate
Appointed by city
council from city
council members/mayor
Group 2 Los Altos, Los Altos Hills,
Mountain View, Palo Alto
1 member
1 alternate
Determined by
Group 2 members
Group 3
Campbell, Cupertino,
Los Gatos, Monte Sereno,
Saratoga
1 member
1 alternate
Determined by
Group 3 members
Group 4 Gilroy, Morgan Hill 1 member
1 alternate
Determined by
Group 4 members
Group 5 Milpitas, Santa Clara,
Sunnyvale
2 members
1 alternate
Determined by
Group 5 members
Group 6 County of Santa Clara 2 members
1 alternate
Appointed by County
Board of Supervisors
Source: California Pub. Util. Code section 100060.
While VTA continues to insist that two-year terms are suitable for its governance (as specified in
PUC § 100060.2), peer agencies in the state appoint their Board members to four-year terms,
leading to much longer average lengths of service and potentially greater experience and
transportation-related knowledge (see Figure 2).
Multiple reports and audits have suggested weaknesses introduced by VTA’s approach to the
appointment of Board members. For example, the 2019 Board Governance Assessment concluded,
in part, that some processes and policies (e.g., committee structure, term limits, and Board member
selection guidelines) might not reflect best practices or support long-term Board stability (VTA,
2019). Additionally, a report by the 2018-19 Santa Clara County Civil Grand Jury found that the
VTA Board suffers from:
• A lack of experience and limited continuity by many Board members;
• Inadequate time for the directors to devote to the Board’s oversight and policy-making
functions;
• A lack of engagement by some of the directors, fostered in part by the committee system,
resulted in VTA functioning largely as a staff-driven organization.
More recently, a critical 2024 report from the State Auditor regarding VTA’s project management
and financial oversight noted the following weaknesses:
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• The process for selecting directors for the Board is not always transparent enough to ensure
the appointment of directors experienced in transportation issues.
• Some groups of cities appoint VTA directors without public deliberation, limiting
transparency and sometimes bypassing the statutory recommendation for transportation
expertise.
• VTA directors have shorter tenures, on average, than their peers, meaning that VTA’s
Board has less experience overseeing the agency’s operations than the Boards of peer
agencies.
Figure 2: Average Directors’ Tenure among VTA and Peer Agencies
Source: Auditor of the State of California, “Santa Clara Valley Transportation Authority,
Improvements Are Necessary to Strengthen Its Project Management and Financial Oversight,”
June 2024.
Note: LA Metro stands for Los Angeles County Metropolitan Transportation Authority; OCTA
stands for Orange County Transportation Authority; SacRT stands for Sacramento Regional
Transit District.
During interviews and in reviewing existing reports and audits about VTA, the Civil Grand Jury
learned that Board members and elected officials broadly support a four-year term for directors.
Lengthening terms would require a change to VTA’s enabling legislation. The findings of the State
and VTA’s own auditors’ governance reform recommendations remain unchanged.
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Public Communication
Following the VTA auditor general’s report in January 2024, public communication and
community outreach regarding the BSVII project have improved. The Civil Grand Jury noted
improvements to the VTA BSVII project website, including efforts to deliver timely updates to
residents about the impact of construction activities, and a section for frequently asked questions
(FAQ) (VTA, BART Silicon Valley Phase II Project, n.d.). In addition, many interviewees told
the Civil Grand Jury that VTA has made efforts to better inform the public and officials since the
auditor general's report highlighted communication breakdowns in 2023.
However, there are areas where the public would benefit from VTA focusing more on improving
communication.
The VTA’s BSVII project website does not offer a simple, clear dashboard outlining the costs,
timeline, and progress of the BSVII project. Although it includes technical reports from the
federally sponsored PMOC, it does not include the independent analyses by the SME or the VTA
auditor general.
A high-level dashboard would consolidate information from multiple sources, present project
metrics to the public, and provide access to source materials. Today, information on funding,
expenditures, and schedule status is available on the website, but is buried in layers of reports that
are nonintuitive to find or navigate.
In addition, the Civil Grand Jury found the site’s search function inadequate for locating specific
details or addressing questions not covered in the FAQ, and it often returned results for irrelevant
materials. The website would be more user-friendly if VTA incorporated a more robust search
engine.
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CONCLUSION
The VTA Board has failed in its responsibility to provide effective management, oversight, and
financial control of the BSVII Project.
Based on its investigation, the Civil Grand Jury concludes:
• There is no realistic plan to deal with foreseeable financial risks, including significant
uncertainty about BSVII’s construction and operating costs, reliance on expiring voter-
approved sales tax measures, uncertain federal government support, cash flow, and
declining ridership.
• When considering major scope and design decisions, the Oversight Committee and the
VTA Board do not take into account the ongoing operations and maintenance costs that
will be borne by VTA and will require voter approval of subsequent sales tax measures.
• The Oversight Committee exercises its oversight responsibility by requiring monthly
progress reports and by questioning VTA project staff, but when it declines to make
recommendations to the VTA Board, it fails in its responsibility to provide guidance on
critical policy issues.
• The Oversight Committee receives valuable input from multiple sources but does not share
this information with the VTA Board in the form of helpful reports that synthesize the
different perspectives of VTA staff, the Subject Matter Expert, the auditor general, the
Project Management Oversight Consultant, and the public.
• The VTA Board and the Oversight Committee have failed to hold VTA staff accountable
for missing deadlines to provide analysis and information requested by members of the
Oversight Committee.
• There is a lack of meaningful communication and cooperation between BART and VTA
officials, which undermines public confidence.
• VTA’s failure to adopt governance reform recommendations from prior Civil Grand Jury
reports and independent audits has led to a lack of Board member continuity and expertise,
weakening the Board’s ability to successfully oversee the BSVII project.
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FINDINGS AND RECOMMENDATIONS
Finding 1
The BSVII project currently requires voter approval of additional sales tax measures to address
gaps in construction and operations funding.
Recommendation 1
VTA should adopt and publish a strategy for the completion and operation of the project that
reduces dependency on new sales tax measures.
This should be implemented by December 31, 2026.
Finding 2
VTA does not maintain a cash-flow model for the BSVII project.
Recommendation 2
The VTA Board should direct the General Manager to prepare a cash-flow model for the BSVII
project and present it quarterly to the Oversight Committee and the Board.
This should be implemented by December 31, 2026.
Finding 3
VTA has not developed an alternative funding strategy for the project in the event that planned
funding sources are unavailable or insufficient.
Recommendation 3
The VTA Board should direct the General Manager to prepare an alternative funding strategy to
meet the project’s estimated total capital costs and VTA’s responsibility for operating and
maintenance costs and present it to the Oversight Committee and Board for approval.
This should be implemented by December 31, 2026.
Finding 4
Project management does not consistently report the operating and maintenance cost implications
of design and construction decisions to the Oversight Committee or the Board.
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Recommendation 4
VTA should adopt a policy requiring staff to present an analysis of operating and maintenance
costs when considering design and construction alternatives for BSVII.
This should be implemented by December 31, 2026.
Finding 5
The VTA Board would benefit from longer terms of office to improve continuity and institutional
knowledge.
Recommendation 5
VTA should reconsider its prior rejections of audit recommendations calling for the establishment
of four-year terms and direct its legislative advocates to seek a legislative author to amend VTA’s
enabling statute to require four-year terms.
This should be implemented by December 31, 2026
Finding 6
VTA Board Appointing Authority Groups 2 through 5 often do not follow VTA Administrative
Code (Section 2-14) admonitions to “appoint individuals with appropriate experience and
qualifications in transportation” and to “reappoint representatives to consecutive terms.”
Recommendation 6
VTA Board Appointing Authority Groups 2 through 5 should certify to the VTA Board that they
will adhere to VTA Administrative Code (Section 2-14) admonitions, regarding Board member
expertise and appointment to consecutive terms.
This should be implemented by December 31, 2026.
Finding 7
VTA Board Appointing Authority Groups 2 through 5 have different processes for making Board
appointments.
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Recommendation 7
The cities represented in Appointing Authority Groups 2 through 5 should agree on a uniform
process for making Board appointments.
This should be implemented by December 31, 2026.
Finding 8
The role assigned to the auditor general is outside the traditional scope of an auditor’s
responsibilities and has introduced conflict and uncertainty among VTA staff and the Oversight
Committee. Being involved in the management and policy-making process threatens the auditor
general’s independence.
Recommendation 8
The Board should implement an alternative model for supporting the Oversight Committee that
does not rely on the auditor general to provide services such as agenda preparation, monitoring of
VTA staff assignments, or preparation of a synthesis of multiple independent inputs to the
Committee’s deliberations.
This should be implemented by December 31, 2026
Finding 9
The Board of Directors has not approved the bylaws, nor the charter of the Oversight Committee.
Recommendation 9
VTA should formally adopt a revised Charter for the Oversight Committee, setting the Board’s
expectations on the following issues:
• Defining the role of the auditor general to no longer require him to supervise the
presentations by VTA staff to the Oversight Committee;
• The responsibility of the Oversight Committee to report regularly to the Board on the
independent analyses of costs, risks, and schedule by the PMOC and any SMEs; and to
provide the Oversight Committee’s synthesis of those analyses with recommendations to
resolve conflicts when necessary;
• The responsibility of the Oversight Committee to consider and present its
recommendations before the Board considers major decisions such as scope of the project,
contracting, risk management, budgeting, and funding strategy;
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• The responsibility of the Oversight Committee to hold subject matter experts accountable
for timely analysis of costs, risk, and schedule;
• The responsibility of the Oversight Committee to report to the Board on the implications
of design and construction issues that impact future ongoing operations and maintenance
costs to be borne by VTA.
This should be implemented by December 31, 2026.
Finding 10
VTA’s vtabart.org website is poorly organized and not always intuitive to navigate, making it hard
to find information about the status, cost, and schedule of the BSVII project.
Recommendation 10
The VTA Board should direct the General Manager to implement and maintain a project dashboard
on its vtabart.org website that includes status, cost, and schedule information.
This should be implemented by October 31, 2026.
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REQUIRED RESPONSES
Pursuant to California Penal Code section 933(a) et seq. and California Penal Code section
933.05, the 2025-26 Santa Clara County Civil Grand Jury requests responses from the
following governing bodies:
Responding Agency Findings Recommendations
VTA Board of Directors 1, 2, 3, 4, 5, 8, 9, 10 1, 2, 3, 4, 5, 8, 9, 10
County of Santa Clara, Board of Supervisors 6 6
The City of Campbell, City Council 6, 7 6, 7
The City of Cupertino, City Council 6, 7 6, 7
The City of Gilroy, City Council 6, 7 6, 7
The City of Los Altos, City Council 6, 7 6, 7
The Town of Los Altos Hills, Town Council 6, 7 6, 7
The Town of Los Gatos, Town Council 6, 7 6, 7
The City of Milpitas, City Council 6, 7 6, 7
The City of Monte Sereno, City Council 6, 7 6, 7
The City of Morgan Hill, City Council 6, 7 6, 7
The City of Mountain View, City Council 6, 7 6, 7
The City of Palo Alto, City Council 6, 7 6, 7
The City of San José, City Council 6, 7 6, 7
The City of Santa Clara, City Council 6, 7 6, 7
The City of Saratoga, City Council 6, 7 6, 7
The City of Sunnyvale, City Council 6, 7 6, 7
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APPENDIX A: BART Management Letter
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VTA'S MANAGEMENT AND OVERSIGHT OF BART SILICON VALLEY PHASE II
kai
BART SILICON VALLEY
PHASE II (BSV I)
BART remai n s fully c ommitted to the success ful del ivery of this critical regio nal investmen t .
H owever, that commitmen t d ep ends on VTA's i m medi ate corrective action to rest ore tra nsparency
and ac co untability.
Sincerely,
Shane Edwards
BART Assis tant General Manager, 0perations
BART Project Director
Ce: VTA's BART S i l icon Vall ey P hase II 0versight Com m i ttee Members
Greg R i chardson, VTA Deputy General Manager
Robert Po w e rs , BART General Manager
Mich ael Jones, BART D ep uty General Manager
Ni Lee, BART D epu t y P roj ect D i rector
M o n i ca Born, VTA Program Director
Tom Maguire, VTA C hi ef De l i very Officer of Mega Proj ects
BSVII: Co ll aborati o n , I n n ovat i on, Safety, R e l i ab ility 2
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CONFLICTS
Members of the Civil Grand Jury are conflicted from a Civil Grand Jury investigation if, as a result
of prior or current employment or associations, investment in public or private enterprise, financial
interest, bias, or personal relationship, they are subject to recusal from participating in a matter
before the Civil Grand Jury. One juror was recused from this matter.
REFERENCES
Bibliography
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(https://santaclaravta.iqm2.com/Citizens/Detail_LegiFile.aspx?MeetingID=4412&ID=
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Auditor of the State of California. “Santa Clara Valley Transportation Authority, Improvements
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Cal. Pub. Util. Code section 10000 et seq.
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Geha, Joseph. “Feds Commit $5.1 Billion to South Bay BART Extension.” KQED.org. August
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bart-extension#:~:text=Joseph%20Geha,increases%20to%20the%20current%20figure).
Accessed April 22, 2026.
Hicks, Tony. “VTA Board approves purchase of machine to bore BART line.” Mountain View
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approves-purchase-of-machine-to-bore-bart-line/). Accessed April 5, 2026.
Metropolitan Transportation Commission. “Agreement Reached on Loan for Bay Area Transit
Agencies.” January 30, 2026. (https://mtc.ca.gov/news/agreement-reached-loan-bay-area-
transit-
agencies#:~:text=Because%20many%20transit%20capital%20projects,funds%20remaine
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Office of the County Counsel, County of Santa Clara. “County Counsel’s Impartial Analysis of
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San Francisco Bay Area Rapid Transit District. “BART Board initially approves Alternative
Service Plan outlining budget balancing details.” February 26, 2026.
(https://www.bart.gov/news/articles/2026/news20260226-0). Accessed April 29, 2026.
San Francisco Bay Area Rapid Transit District. "January 2026 Monthly Ridership Snapshot."
February 2026. (https://www.bart.gov/sites/default/files/2026-
02/202601%20Monthly%20Ridership%20Snapshot.pdf). Accessed April 29, 2026.
San Francisco Bay Area Rapid Transit District. " 2019 Monthly Ridership Reports." 2019.
(https://www.bart.gov/sites/default/files/docs/ridership_2019.zip). Accessed April 29,
2026.
Santa Clara Valley Transportation Authority, BART Silicon Valley Phase II Project. n.d.
(https://www.vtabart.org). Accessed May 12, 2026.
Santa Clara Valley Transportation Authority, “VTA Board of Directors Workshop Reviews
BART Phase II Timeline, Costs, And Next Steps.” October 23, 2023.
(https://www.vta.org/blog/vta-board-directors-workshop-reviews-bart-phase-ii-timeline-
costs-and-next-steps). Accessed April 29, 2026.
Santa Clara Valley Transportation Authority Auditor General. “Auditor General’s Initial
Monitoring Report on VTA’s BART Silicon Valley Phase II Extension Project.” VTA’s
BART Silicon Valley Phase II Extension Oversight Committee Agenda. Item 8a. January
19, 2024. (https://santaclaravta.iqm2.com/Citizens/Detail_Meeting.aspx?ID=4233).
Accessed April 5, 2026.
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Santa Clara Valley Transportation Authority/RSM US LLC. “Board Governance Assessment –
Santa Clara Valley Transportation Authority.” December 20, 2019. (https://www.vta.gov/
sites/default/files/2020-01/VTA%20Board%20Governance%20Assessment%20
%281%29.pdf). Accessed April 5, 2026.
Santa Clara Valley Transportation Agency. “BART Silicon Valley Extension Project Implements
Major Cost Reductions.” November 13, 2024. (https://www.vta.org/blog/bart-silicon-
valley-extension-project-implements-major-cost-reductions). Accessed April 23, 2026.
Santa Clara Valley Transportation Authority/HayGroup. “Santa Clara Valley Transportation
Authority Organizational and Financial Assessment Executive Report.” March 2007.
(https://ti.org/pdfs/HayGrouponVTA.pdf). Accessed April 5, 2026.
Santa Clara Valley Transportation Authority. “Operations and Maintenance Agreement By and
Between the Santa Clara Valley Transportation Authority and The San Francisco Bay
Area Rapid Transit District.” May 22, 2020. (https://www.vta.org/sites/default/files/2020-
12/VTA%20BART%20Operations%20and%20Maintenance%20Agreement_0.pdf).
Accessed April 23, 2026.
Santa Clara Valley Transportation Authority. “Santa Clara Valley Transit Authority
Administrative Code (With Amendments through March 6, 2025).” March 2025.
(https://www.vta.org/sites/default/files/2025-04/VTA_Administrative_Code_2025-3-
6.pdf). Accessed April 5, 2026.
Santa Clara Valley Transportation Authority. “Bylaws for VTA’s BART Silicon Valley Phase II
Oversight Committee.” April 4, 2024. (https://www.vta.gov/sites/default/files/2024-04/
vta-bsv-oversight-committee-bylaws_0.pdf). Accessed April 8, 2026.
Santa Clara Valley Transportation Authority. Special Board Meeting. October 17, 2025. (https://
santaclaravta.iqm2.com/Citizens/FileOpen.aspx?Type=14&ID=4297&Inline=True)
Accessed April 9, 2026.
Santa Clara Valley Transportation Authority. “VTA's BART Silicon Valley Phase II Oversight
Committee Regular Meeting”, Agenda Item 9.a, Item #25. April 17, 2024.
(https://santaclaravta.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=3940&Inline=True
). Accessed May 1, 2026.
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Santa Clara Valley Transportation Authority. “VTA's BART Silicon Valley Phase II Oversight
Committee Regular Meeting.” Agenda Item 4, Item #4. March 13, 2025.
(https://santaclaravta.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=4138&Inline=True
). Accessed May 1, 2026.
Santa Clara Valley Transportation Authority. “VTA's BART Silicon Valley Phase II Oversight
Committee Regular Meeting.” Item 11a. June 12, 2025.
(https://santaclaravta.iqm2.com/Citizens/Detail_Meeting.aspx?ID=4430). Accessed April
29, 2026.
Santa Clara Valley Transportation Authority. “BSVII Project Update.” Summer, 2025.
(https://vtabart.org/vtas-bart-silicon-valley-phase-ii-extension-project-summer-2025/).
Accessed May 13, 2026.
Santa Clara Valley Transportation Authority. “VTA's BART Silicon Valley Phase II Oversight
Committee Regular Meeting.” Item 8. January 15, 2026.
(https://santaclaravta.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=4354&Inline=True
). Accessed April 22, 2026.
Santa Clara Valley Transportation Authority. “2000 Measure A.” n.d.
(https://www.vta.org/projects/funding/2000-measure-a). Accessed April 29, 2026.
Santa Clara Valley Transportation Authority. “About 2016 Measure B.” n.d.
(https://2016measureb.vta.org/about). Accessed April 29, 2026.
Santa Clara Valley Transportation Authority. “VTA's BART Silicon Valley Phase II Oversight
Committee Regular Meeting.” Item 10b. Slide 21. September 11, 2025.
(https://santaclaravta.iqm2.com/Citizens/FileOpen.aspx?Type=1&ID=4273&Inline=True
). Accessed April 13, 2026.
Santa Clara Valley Transportation Authority. “Fact Sheet: VTA's Bart Silicon Valley Phase 2
Extension Project.” March 2024. (https://www.vta.org/sites/default/files/2024-
07/VTABSV_FactSheet_2024_OverviewBenefits%201.pdf). Accessed April 13, 2026.
Shalby, Colleen. “Trump administration pulls billions in funding for high-speed rail project; state
leaders call decision ‘illegal.’” Los Angeles Times. July 16, 2025.
(https://www.latimes.com/california/story/2025-07-16/trump-administration-cancels-
funding-for-high-speed-rail-project). Accessed April 29, 2026.
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Shalby, Colleen. “Multibillion-dollar transit project to tunnel through the Santa Monica
Mountains is approved by L.A. Metro.” LA Times. January 22, 2026.
(https://www.latimes.com/california/story/2026-01-22/this-multibillion-dollar-transit-
project-could-improve-traffic-across-la-it-goes-to-vote-today - :~:text=This is read by
an,transit projects in the country). Accessed April 13, 2026.
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This report was ADOPTED by the 2025-2026 Santa Clara County Civil Grand Jury on this 17 th
day of June, 2026.
______________________________
Dinesh Ramde
Foreperson
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CITY OF CUPERTINO
Agenda Item
Subject: City Manager Report
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Wednesday, August 26, 2026
A Message from the City Manager
Dear Neighbors,
I hope you had a restful summer and have had opportunities to enjoy time with family,
friends, and neighbors. It has been a busy summer in Cupertino bringing residents of all
ages together for community events and activities.
As we look toward fall, the City continues to move forward on important priorities,
including work to maintain existing law enforcement levels and negotiations on the
Sheriff’s Office contract. The City is also preparing for the Cupertino Community Service
Awards, which will recognize outstanding members of the community and their service.
In this edition, you’ll find information on the CREST Awards winners, as well as highlights
from community events including National Night Out, the India Independence Day
Flag Raising, and the Bell Ringing for Peace ceremony. You’ll also find information
about upcoming fall recreation activities, and other opportunities to get involved and
stay active.
I hope you enjoy the final days of summer and the start of the fall season. Thank you, as
always, for staying engaged and connected with your community as we continue
working together for Cupertino.
Read the full City Manager’s Newsletter August 26, 2026 and all previous editions at
cupertino.gov/cmnewsletter.
Warm Regards,
Tina Kapoor, City Manager
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CITY COUNCILMEMBER REPORT
Meeting: September 1, 2026
Reporting Councilmember: Councilmember J.R. Fruen
Report Dates: 7/14/26 to 8/24/26
Item Date, Title, and Description:
Event 1. July 16, 2026 – Meeting with the City Manager – I met with City Manager Tina
Kapoor to go over upcoming council agenda items, items of interest, and issues raised by
residents.
Event 2. July 16, 2026 – Briefing on Ballot Measures – Together with Councilmember Mohan, I
attended a staff briefing on the two proposed ballot measures for council consideration and
referral to voters.
Event 3. July 23, 2026 – Cities Association of Santa Clara County JPA Executive Committee
Meeting – I attended the meeting of the CASCC Executive Committee in my capacity as 1st Vice
President of the JPA. Agenda materials are available here.
Event 4. August 4, 2026 – National Night Out – I attended multiple National Night Out
gatherings that requested councilmember presence. It was heartening to see so many residents
engaged and active in community.
Event 5. August 6, 2026 – Bell-Ringing For Peace – Together with Mayor Moore and Vice-
Mayor Chao, I attended the annual Bell-Ringing for Peace ceremony commemorating the
bombing of Japan during the Second World War.
Event 6. August 8, 2026 – Library Aquarium Unveiling – I attended the unveiling of the
Library’s refurbished and restored aquarium in my capacity as the Council appointee to the
Santa Clara County Library District.
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Event 7. August 11, 2026 – Meeting with the City Manager – I met with City Manager Tina
Kapoor to go over upcoming council agenda items, items of interest, and issues raised by
residents.
Event 8. August 12, 2026 – Silicon Valley Clean Energy Authority Board Meeting – I attended
this meeting in my capacity as the Alternate Director for Cupertino.
Event 9. August 13, 2026 – India Flag Raising Ceremony – Together with Mayor Moore, Vice
Mayor Chao, and Councilmember Mohan, I attended this annual flag raising ceremony hosted
by the Cupertino-Bhubaneswar Sister City Initiative in honor of India’s independence.
Event 10. August 17, 2026 – Book Presentation and Signing for “Hope Is the Strategy” – At
the invitation of the Santa Clara County Library District, I introduced Jen Fisher, the author of
Hope Is the Strategy, for a public reading, discussion and book signing hosted at the Cupertino
Library.
Event 11. August 19, 2026 – Meeting with the City Manager – I met with City Manager Tina
Kapoor to go over upcoming council agenda items, items of interest, and issues raised by
residents.
Event 12. August 22, 2026 – Qmunity Rainbow Crosswalk Painting – At the invitation of
Assemblymember Alex Lee and together with other public officials, I attended the
inauguration and public installation of a new Rainbow Crosswalk in the Qmunity District on
Post Street in San Jose in advance of Silicon Valley Pride.
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CITY COUNCILMEMBER REPORT
Meeting: September 1, 2026
Reporting Councilmember: Councilmember Sheila Mohan
Report Dates: 7/14/26 to 8/24/26
Item Date, Title, and Description:
7/16/26 Participated in a TEAMS meeting conducted by Staff – to review agenda items for
the July 21 Council meeting. These included a discussion of the survey results on the tax
measures being considered at that time by Council, the continuation of the tax-sharing
agreement with Insight Software Solutions, and approval of the final map of The Rise
development.
7/19/26 Attended A Taste of Cupertino, an art and wine festival held at Main Street. This
was the first time that the Chamber of Commerce hosted this event. Despite the conflicting
date with the World Cup Soccer finals, there was a good crowd of families and children
enjoying the festive atmosphere. Kudos to the Chamber for organizing this.
7/26/26 Attended the Shakespeare in the Park performance of Antony and Cleopatra.
This was exceptionally well done, and the setting of Memorial Park with the late evening sun
was quite spectacular. The crowd appeared to enjoy the play with its themes of conflict
between duty and personal relationships and their impact on political events.
8/13/26 Along with Mayor Moore, Vice Mayor Chao and Councilmember Fruen, I
attended the India Independence Day Flag Raising ceremony at the Civic Center Plaza. A
well-attended event, with beautiful dance performances and even a flash mob and graced by
many bay area officials, including the Deputy Consul General of India. This was his last
assignment in America – he returns to India next month. The entire event, other than the flag
raising, was held indoors much to everyone’s relief. The outside temperature exceeded 85
degrees.
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CITY COUNCILMEMBER REPORT
Meeting: September 1, 2026
Reporting Councilmember: Mayor Kitty Moore
Report Dates: 7/13/26 to 8/24/26
Item Date, Title, and Description:
July 14, 2026. Attended 2026 Bird-Friendly City Innovation Contest Awards Ceremony with
Silicon Vallet Bird Alliance and artists from Eagle City at Visionary Arts. Provided remarks and
presented certificates to visiting students interested in ecology and protection of the eagle
migration routes.
July 15, 2026. Silicon Valley Hopper Ribbon Cutting Ceremony in Santa Clara. Attended and
provided remarks at the expansion event in Santa Clara. We are excited to see SV Hopper
expanding into north Santa Clara and thank you to our staff who have continued to seek grant
funding opportunities for this popular transit option!
July 15, 2026. Provided remarks for the opening of the GenAI Pitch Competition by AWS in
Community Hall.
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July 21, 2026. Meeting with Sheriff Deputy Association representatives, the City Manager, and
Councilmember Wang regarding the sheriff contract.
July 21, 2026. Regular City Council Meeting.
Start of Council Summer Break
July 22, 2026. FIFA event planning meeting with staff.
July 22, 2026. Cal Cities Capitol Countdown: Top Remaining Bills webinar.
July 22, 2026. Meeting with Kevin Duggan and the City Manager RE Evaluation process.
July 22, 2026. Cupertino Kicks – FIFA Ball Giveaway, Mayor’s Initiative. Through the US
Conference of Mayors, Cupertino secured 200 FREE FIFA Soccer balls and distributed them in a
very fun event, sharing our thanks for FIFA and celebrating the World Cup.
July 23, 2026. ILG Lunch and Learn: How to Plan Effective Public Workshops.
July 23, 2026. Sheriff contract meeting.
July 23, 2026. Meeting with City Manager and Veterans’ Day Celebration sponsors regarding
succession planning.
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July 24, 2026. Attended TECO screening of “A Chip Odyssey”, a documentary about the Taiwan
chip manufacturing industry.
July 27, 2026. Meeting with Saratoga Planning Commissioner Li Ping.
July 27, 2026. Cupertino Audit Committee meeting. Due to noticing issue the meeting was held
as a Special Meeting July 28, 2026. Discussed upcoming internal audit program projects and
ranking.
July 28, 2026. Meeting with Homestead FBLA representative to discuss potential student
projects for their upcoming year.
August 4, 2026. National Night Kick Off. Started with a meet and greet with Santa Clara County
Sheriffs followed by neighborhood block parties at Seven Springs and Hoover Park. Great to see
everyone out and about having fun. The Hoover Park visit by the K9 Sheriff Unit and the Santa
Clara County Fire fighters and fire truck was a hit with the large crowd that came out.
August 6, 2026. Attended and made remarks at the Toyokawa Sister City Bell Ringing for Peace
at Memorial Park which marks the tragic Nagasaki and Hiroshima bombings at the end of
WW2.
August 11, 2026. Special City Council Closed Session meeting.
August 12, 2026. Interview with Mayor Moore re: Citizenship in Community Merit Badge[In-
person]. Participated in an interview by two Scouts for their Merit Badge.
August 12, 2026. Sheriff Contract ad hoc Committee meeting.
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August 13, 2026. Staff planning meeting.
August 13, 2026. Staff informational meeting.
August 13, 2026. India Independence Day Flag Raising: made remarks and enjoyed the
celebrations for the 80th celebration.
August 16, 2026. FOG India Day Parade. Participated in the huge parade in Fremont for India
Independence Day. Here is the float from Odisha, where our Bhubaneswar Sister City is located:
August 16, 2026. Attended and made remarks at Cupertino’s First Annual Inclusive Talent
Show at Community Hall. This was an especially proud moment for Cupertino to share gifts of
musical instrument talents, singing, poetry reading, comedy, and even a Rubic’s cube master.
Thank you to opp4comm.org organizers for this wonderful community event!
August 17, 2026. Cupertino and Los Altos Hills meeting.
August 18, 2026. Sheriff’s Contract meeting.
August 18, 2026. Mayor’s Initiative Planning Meeting.
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August 19, 2026. Cupertino and Los Altos Hills Planning meeting.
August 20, 2026. Agenda review through October.
August 22, 2026. Presented certificate and made remarks at the Taiwan Kids funfest which had
over 20 nations represented.
August 23, 2026. Provided remarks and Certificates for Pastor Diana Brady and Pastor Mark
Brady who have been providing support for the Veterans Day and Wreaths Across America
events. Their thoughtful words have enriched these events for many years, providing comfort to
our Veterans and their families. They will be missed by our community, and we wish them all
the best as they embark on a new chapter in their lives.
August 24, 2023. Interview with San Jose Spotlight.
Upcoming Events:
Tree Planting
Join Mayor Kitty Moore for a community tree planting event at Blackberry Farm. Help plant
trees, connect with neighbors, and beautify Cupertino.
Breakfast will be provided. Please wear comfortable clothing and sturdy shoes, and bring your
own work gloves. Event is limited to 30 volunteers.
Date: Saturday, September 5
Time: 8 to 10 a.m.
Location: Blackberry Farm, 21979 San Fernando Avenue, Cupertino, CA 95014
RSVP: cupertino.gov/treeplanting
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Move Moore Challenge
Get moving with the Move Moore Challenge! From September 7 through October 7, track your
minutes of physical activity and encourage family, friends, and neighbors to join you. Every
minute counts toward our community-wide goal to get moving together.
Date: Monday, September 7 through Wednesday, October 7
How to Participate: Learn how to sign up and track your activity at cupertino.gov/movemoore.
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CITY OF CUPERTINO
Agenda Item
Subject: Upcoming Draft Agenda Items Report
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CITY OF CUPERTINO
City Council
Tuesday, September 15, 2026
Ceremonial ItemsCeremonial Items
26-15363 Subject: Recognition of Cupertino High School students on their
achievements in the 2026 Future Business Leaders of America (FBLA)
National Leadership Conference.
Consent Calendar
26-15350 Subject: Receive Grants Management Internal Control Review Final
Report
26-15305 Subject: Adoption of Resolution No. 26-083 authorizing the City Manager
to accept $850,000 in federal grant funds from the Community Project
Funding Program, awarding a Design Professional Services Agreement to
Biggs Cardosa Associates, Inc. for a total not to exceed amount of
$1,278,700, for the McClellan Road Bridge Project, and authorizing City
Manager to execute the agreement. (Postponed on July 21, 2026)
25-14330 Subject: Second Reading and enactment of Amendments to Municipal
Code Section 2.88.100 Duties-Powers-Responsibilities of the Audit
Committee
25-14441 Subject: Ratifying Accounts Payable for the periods ending
25-14456 Subject: Receive the Treasurer's Investment Report for Quarter Ending
25-14684 Subject: Approval of September 1, 2026 City Council meeting minutes
Public Hearings
26-15201 Subject: Introduction of an Ordinance Amending Cupertino Municipal
Code Chapter 19.08 (Definitions) to revise definitions of “attic” and
“garages” and establish a new definition of “square footage” to align with
state law, and associated Environmental Review. (Applicant: City of
Cupertino; Location: City-wide)
Future Agenda Items
25-14707 Subject: Upcoming Draft Agenda Items Report
Action Calendar
25-14521 Subject: Approval to execute a contract with Santa Clara County Office of
the Sheriff for a five-year period 2025/26 to 2030/31
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Wednesday, August 26, 2026
26-15227 Subject: Consider Approval of the City Council Response to the 2026
Santa Clara County Civil Grand Jury Report entitled, "Pothole Damage:
Improving claims processes within Santa Clara County."
26-15034 Subject: Receipt and Review of Baker Tilly City Council Policy Review
Report; Direction to Staff
26-15351 Subject: FY 2026-27 Internal Audit Work Program
Councilmember Reports
25-14637 Subject: Councilmember Reports
City Manager Report
25-14663 Subject: City Manager Report
Tuesday, October 6, 2026
Ceremonial ItemsCeremonial Items
26-14867 Subject: Recognition of the Community Development Department
(Planning, Building, Housing, and Code Enforcement Divisions)
Consent Calendar
25-14450 Subject: Receive the Monthly Treasurer's Report for
25-14685 Subject: Approval of September 15, 2026 City Council meeting minutes
25-14432 Subject: Receive the Monthly Treasurer's Investment Report for
26-15214 Subject: Second Reading and enactment of an Ordinance Amending
Cupertino Municipal Code Chapter 19.08 (Definitions) to revise
definitions of “attic” and “garages” and establish a new definition of
“square footage” to align with state law, and associated Environmental
Review. (Applicant: City of Cupertino; Location: City-wide)
Public Hearings
26-15282 Subject: Introduction of an Ordinance Amending the Cupertino
Municipal Code regarding Parkland Re-Zoning and General Plan
Amendment
26-15362 Subject: Conduct the public hearing under the requirements of the Tax
and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue
Code of 1986, as amended (the “Code”).
Future Agenda Items
25-14708 Subject: Upcoming Draft Agenda Items Report
Action Calendar
26-15365 Subject: Adoption of the Health and Safety Element
26-15349 Subject: FY 2025-2027 City Work Program Year 1 Wrap up
Councilmember Reports
25-14644 Subject: Councilmember Reports
City Manager Report
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25-14664 Subject: City Manager Report
Tuesday, October 20, 2026
Consent CalendarConsent Calendar
25-14686 Subject: Approval of October 6, 2026 City Council meeting minutes
25-14442 Subject: Ratifying Accounts Payable for the periods ending
26-15336 Subject: Award of contract to XXX for Gymnastics Class Programs and
Camps for a total not-to-exceed amount of $XXX; Authority to Extend for
Two Additional Years for Five-Year Total Not to Exceed $XXX
26-15283 Subject: Second Reading and enactment of Cupertino Municipal Code
regarding Parkland Re-zoning and General Plan Amendment
26-15370 Subject: Blue Pheasant Lease
Future Agenda Items
25-14709 Subject: Upcoming Draft Agenda Items Report
Councilmember Reports
25-14645 Subject: Councilmember Reports
City Manager Report
25-14665 Subject: City Manager Report
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