05-17-2022 Searchable Packet — Cupertino City Council, May 17, 2022 (part 4 of 9)

Construction Type Construction Type Construction Type

IA, IB IIA, IIB, IIIA, IIIB, IV VA, VB
IBC
Class IBC Occupancy Type
Project Size
Threshold
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
A-1 Assembly—Fixed Seating 1,000 $6,427 $42.2750 $5,355 $35.2292 $4,284 $28.1833 - Theater, Concert Hall 5,000 $8,118 $47.3500 $6,765 $39.4583 $5,412 $31.5667 - - 10,000 $10,485 $37.2100 $8,738 $31.0083 $6,990 $24.8067 - - 20,000 $14,206 $7.8967 $11,838 $6.5806 $9,471 $5.2644 - - 50,000 $16,575 $8.1100 $13,813 $6.7583 $11,050 $5.4067 - - 100,000 $20,630 $20.6300 $17,192 $17.1917 $13,753 $13.7533 A-2 Assembly—Food & Drink 250 $4,344 $114.3225 $3,620 $95.2688 $2,896 $76.2150 - Restaurant, Night Club, Bar 1,250 $5,487 $128.0250 $4,573 $106.6875 $3,658 $85.3500 - - 2,500 $7,088 $100.5900 $5,906 $83.8250 $4,725 $67.0600 - - 5,000 $9,602 $21.3450 $8,002 $17.7875 $6,402 $14.2300 - - 12,500 $11,203 $21.9450 $9,336 $18.2875 $7,469 $14.6300 - - 25,000 $13,946 $55.7850 $11,622 $46.4875 $9,298 $37.1900 A-3 Assembly—Worship, Amusement 1,000 $8,144 $53.5763 $6,787 $44.6469 $5,429 $35.7175 - Arcade, Church, Community Hall 5,000 $10,287 $60.0000 $8,573 $50.0000 $6,858 $40.0000 - - 10,000 $13,287 $47.1600 $11,073 $39.3000 $8,858 $31.4400 - - 20,000 $18,003 $9.9900 $15,003 $8.3250 $12,002 $6.6600 - - 50,000 $21,000 $10.2900 $17,500 $8.5750 $14,000 $6.8600 - - 100,000 $26,145 $26.1450 $21,788 $21.7875 $17,430 $17.4300 A-4 Assembly—Indoor Sport Viewing 500 $4,960 $65.2650 $4,133 $54.3875 $3,307 $43.5100 - Arena, Skating Rink, Tennis Court 2,500 $6,265 $73.0800 $5,221 $60.9000 $4,177 $48.7200 - - 5,000 $8,092 $57.4440 $6,744 $47.8700 $5,395 $38.2960 - - 10,000 $10,964 $12.1840 $9,137 $10.1533 $7,310 $8.1227 - - 25,000 $12,792 $12.5280 $10,660 $10.4400 $8,528 $8.3520 - - 50,000 $15,924 $31.8480 $13,270 $26.5400 $10,616 $21.2320 A-5 Assembly—Outdoor Activities 500 $5,248 $69.0600 $4,373 $57.5500 $3,499 $46.0400 - Amusement Park, Bleacher, Stadium 2,500 $6,629 $77.3400 $5,524 $64.4500 $4,420 $51.5600 - - 5,000 $8,563 $60.7650 $7,136 $50.6375 $5,709 $40.5100 - - 10,000 $11,601 $12.8850 $9,668 $10.7375 $7,734 $8.5900 - - 25,000 $13,534 $13.2750 $11,278 $11.0625 $9,023 $8.8500 - - 50,000 $16,853 $33.7050 $14,044 $28.0875 $11,235 $22.4700 A A Occupancy Tenant Improvements 500 $3,304 $43.4738 $2,753 $36.2281 $2,203 $28.9825 - - 2,500 $4,173 $48.6750 $3,478 $40.5625 $2,782 $32.4500 - - 5,000 $5,390 $38.2650 $4,492 $31.8875 $3,594 $25.5100 - - 10,000 $7,304 $8.1100 $6,086 $6.7583 $4,869 $5.4067 - - 25,000 $8,520 $8.3400 $7,100 $6.9500 $5,680 $5.5600 - - 50,000 $10,605 $21.2100 $8,838 $17.6750 $7,070 $14.1400 B Business—Bank 500 $4,480 $58.9388 $3,733 $49.1156 $2,987 $39.2925 - - 2,500 $5,659 $66.0300 $4,716 $55.0250 $3,773 $44.0200 - - 5,000 $7,310 $51.8700 $6,091 $43.2250 $4,873 $34.5800 - - 10,000 $9,903 $11.0050 $8,253 $9.1708 $6,602 $7.3367 - - 25,000 $11,554 $11.3250 $9,628 $9.4375 $7,703 $7.5500 - - 50,000 $14,385 $28.7700 $11,988 $23.9750 $9,590 $19.1800 B Business—Laundromat 200 $3,848 $126.5738 $3,207 $105.4781 $2,565 $84.3825 - - 1,000 $4,860 $141.7650 $4,050 $118.1375 $3,240 $94.5100 - - 2,000 $6,278 $111.3750 $5,232 $92.8125 $4,185 $74.2500 - - 4,000 $8,506 $23.6400 $7,088 $19.7000 $5,670 $15.7600 - - 10,000 $9,924 $24.3000 $8,270 $20.2500 $6,616 $16.2000 - - 20,000 $12,354 $61.7700 $10,295 $51.4750 $8,236 $41.1800 B Business—Clinic, Outpatient 500 $4,616 $60.7275 $3,847 $50.6063 $3,077 $40.4850 - - 2,500 $5,831 $68.0400 $4,859 $56.7000 $3,887 $45.3600 - - 5,000 $7,532 $53.4300 $6,276 $44.5250 $5,021 $35.6200 - - 10,000 $10,203 $11.3300 $8,503 $9.4417 $6,802 $7.5533 - - 25,000 $11,903 $11.6700 $9,919 $9.7250 $7,935 $7.7800 - - 50,000 $14,820 $29.6400 $12,350 $24.7000 $9,880 $19.7600 B Business—Professional Office 1,000 $5,097 $49.7663 $4,247 $41.4719 $3,398 $33.1775 - - 5,000 $7,088 $42.8100 $5,906 $35.6750 $4,725 $28.5400 - - 10,000 $9,228 $30.2700 $7,690 $25.2250 $6,152 $20.1800 - - 20,000 $12,255 $7.1500 $10,213 $5.9583 $8,170 $4.7667 - - 50,000 $14,400 $7.6800 $12,000 $6.4000 $9,600 $5.1200 - - 100,000 $18,240 $18.2400 $15,200 $15.2000 $12,160 $12.1600

CITY OF CUPERTINO, CA
Building Division
Schedule of New Construction Fees

PLAN CHECK FEES ONLY
531
CC 05-17-2022
531 of 2420
New Construction - Plan Check Fees

Page 2 of 5 ends

Construction Type Construction Type Construction Type

IA, IB IIA, IIB, IIIA, IIIB, IV VA, VB
IBC
Class IBC Occupancy Type
Project Size
Threshold
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
B B Occupancy Tenant Improvements 300 $3,534 $77.4900 $2,945 $64.5750 $2,356 $51.6600 - - 1,500 $4,464 $86.7900 $3,720 $72.3250 $2,976 $57.8600 - - 3,000 $5,765 $68.1900 $4,805 $56.8250 $3,844 $45.4600 - - 6,000 $7,811 $14.4600 $6,509 $12.0500 $5,207 $9.6400 - - 15,000 $9,113 $14.8800 $7,594 $12.4000 $6,075 $9.9200 - - 30,000 $11,345 $37.8150 $9,454 $31.5125 $7,563 $25.2100 E Educational— Preschool / School 100 $3,804 $250.2563 $3,170 $208.5469 $2,536 $166.8375 - - 500 $4,805 $280.2600 $4,004 $233.5500 $3,203 $186.8400 - - 1,000 $6,206 $220.2300 $5,172 $183.5250 $4,137 $146.8200 - - 2,000 $8,408 $46.7200 $7,007 $38.9333 $5,606 $31.1467 - - 5,000 $9,810 $48.0300 $8,175 $40.0250 $6,540 $32.0200 10,000 $12,212 $122.1150 $10,176 $101.7625 $8,141 $81.4100 E E Occupancy Tenant Improvements 100 $2,988 $196.5675 $2,490 $163.8063 $1,992 $131.0450 - - 500 $3,774 $220.1700 $3,145 $183.4750 $2,516 $146.7800 - - 1,000 $4,875 $172.9800 $4,063 $144.1500 $3,250 $115.3200 - - 2,000 $6,605 $36.6900 $5,504 $30.5750 $4,403 $24.4600 - - 5,000 $7,706 $37.7400 $6,421 $31.4500 $5,137 $25.1600 - - 10,000 $9,593 $95.9250 $7,994 $79.9375 $6,395 $63.9500 F-1 Factory Industrial—Moderate Hazard 1,000 $4,668 $13.3170 $3,890 $11.0975 $3,112 $8.8780 - - 5,000 $5,200 $21.3000 $4,334 $17.7500 $3,467 $14.2000 - - 10,000 $6,265 $23.0760 $5,221 $19.2300 $4,177 $15.3840 - - 20,000 $8,573 $3.5440 $7,144 $2.9533 $5,715 $2.3627 - - 50,000 $9,636 $2.1360 $8,030 $1.7800 $6,424 $1.4240 100,000 $10,704 $10.7040 $8,920 $8.9200 $7,136 $7.1360
F-2 Factory Industrial—Low Hazard 1,000 $4,800 $31.5825 $4,000 $26.3188 $3,200 $21.0550 - - 5,000 $6,063 $35.3700 $5,053 $29.4750 $4,042 $23.5800 - - 10,000 $7,832 $27.7950 $6,526 $23.1625 $5,221 $18.5300 - - 20,000 $10,611 $5.8800 $8,843 $4.9000 $7,074 $3.9200 - - 50,000 $12,375 $6.0600 $10,313 $5.0500 $8,250 $4.0400 - - 100,000 $15,405 $15.4050 $12,838 $12.8375 $10,270 $10.2700 F F Occupancy Tenant Improvements 1,000 $3,513 $23.1180 $2,928 $19.2650 $2,342 $15.4120 - - 5,000 $4,438 $25.8840 $3,699 $21.5700 $2,959 $17.2560 - - 10,000 $5,732 $20.3400 $4,777 $16.9500 $3,822 $13.5600 - - 20,000 $7,766 $4.3120 $6,472 $3.5933 $5,178 $2.8747 - - 50,000 $9,060 $4.4400 $7,550 $3.7000 $6,040 $2.9600 - - 100,000 $11,280 $11.2800 $9,400 $9.4000 $7,520 $7.5200 H-1 High Hazard Group H-1 100 $3,562 $234.3650 $2,969 $195.3042 $2,375 $156.2433 - - 500 $4,500 $262.5000 $3,750 $218.7500 $3,000 $175.0000 - - 1,000 $5,812 $206.2400 $4,844 $171.8667 $3,875 $137.4933 - - 2,000 $7,875 $43.7567 $6,562 $36.4639 $5,250 $29.1711 - - 5,000 $9,188 $44.9900 $7,656 $37.4917 $6,125 $29.9933 - - 10,000 $11,437 $114.3700 $9,531 $95.3083 $7,625 $76.2467 H-2 High Hazard Group H-2 100 $4,275 $281.2380 $3,562 $234.3650 $2,850 $187.4920 - - 500 $5,400 $315.0000 $4,500 $262.5000 $3,600 $210.0000 - - 1,000 $6,975 $247.4880 $5,812 $206.2400 $4,650 $164.9920 - - 2,000 $9,450 $52.5080 $7,875 $43.7567 $6,300 $35.0053 - - 5,000 $11,025 $53.9880 $9,188 $44.9900 $7,350 $35.9920 - - 10,000 $13,724 $137.2440 $11,437 $114.3700 $9,150 $91.4960 H-3 High Hazard Group H-3 100 $4,664 $306.8175 $3,886 $255.6813 $3,109 $204.5450 - - 500 $5,891 $343.6350 $4,909 $286.3625 $3,927 $229.0900 - - 1,000 $7,609 $270.0000 $6,341 $225.0000 $5,073 $180.0000 - - 2,000 $10,309 $57.2850 $8,591 $47.7375 $6,873 $38.1900 - - 5,000 $12,028 $58.9050 $10,023 $49.0875 $8,019 $39.2700 - - 10,000 $14,973 $149.7300 $12,478 $124.7750 $9,982 $99.8200 H-4 High Hazard Group H-4 100 $3,731 $245.4540 $3,109 $204.5450 $2,487 $163.6360 - - 500 $4,713 $274.9080 $3,927 $229.0900 $3,142 $183.2720 - - 1,000 $6,087 $216.0000 $5,073 $180.0000 $4,058 $144.0000 - - 2,000 $8,247 $45.8280 $6,873 $38.1900 $5,498 $30.5520 - - 5,000 $9,622 $47.1240 $8,019 $39.2700 $6,415 $31.4160 - - 10,000 $11,978 $119.7840 $9,982 $99.8200 $7,986 $79.8560 H-5 High Hazard Group H-5 100 $3,731 $245.4540 $3,109 $204.5450 $2,487 $163.6360 - - 500 $4,713 $274.9080 $3,927 $229.0900 $3,142 $183.2720 - - 1,000 $6,087 $216.0000 $5,073 $180.0000 $4,058 $144.0000 - - 2,000 $8,247 $45.8280 $6,873 $38.1900 $5,498 $30.5520 - - 5,000 $9,622 $47.1240 $8,019 $39.2700 $6,415 $31.4160 - - 10,000 $11,978 $119.7840 $9,982 $99.8200 $7,986 $79.8560 532
CC 05-17-2022
532 of 2420
New Construction - Plan Check Fees

Page 3 of 5 ends

Construction Type Construction Type Construction Type

IA, IB IIA, IIB, IIIA, IIIB, IV VA, VB
IBC
Class IBC Occupancy Type
Project Size
Threshold
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
H H Occupancy Tenant Improvements 100 $2,752 $181.0440 $2,293 $150.8700 $1,835 $120.6960 - - 500 $3,476 $202.7880 $2,897 $168.9900 $2,317 $135.1920 - - 1,000 $4,490 $159.3240 $3,742 $132.7700 $2,993 $106.2160 - - 2,000 $6,083 $33.7840 $5,069 $28.1533 $4,056 $22.5227 - - 5,000 $7,097 $34.7760 $5,914 $28.9800 $4,731 $23.1840 - - 10,000 $8,836 $88.3560 $7,363 $73.6300 $5,890 $58.9040 I-1 Institutional—7+ persons, ambulatory 500 $4,676 $61.5270 $3,896 $51.2725 $3,117 $41.0180 - - 2,500 $5,906 $68.8920 $4,922 $57.4100 $3,937 $45.9280 - - 5,000 $7,628 $54.1440 $6,357 $45.1200 $5,086 $36.0960 - - 10,000 $10,336 $11.4760 $8,613 $9.5633 $6,890 $7.6507 - - 25,000 $12,057 $11.8200 $10,048 $9.8500 $8,038 $7.8800 - - 50,000 $15,012 $30.0240 $12,510 $25.0200 $10,008 $20.0160 I-2 Institutional—6+ persons, non-ambulatory 500 $5,663 $74.5200 $4,720 $62.1000 $3,776 $49.6800 - - 2,500 $7,154 $83.4450 $5,962 $69.5375 $4,769 $55.6300 - - 5,000 $9,240 $65.5800 $7,700 $54.6500 $6,160 $43.7200 - - 10,000 $12,519 $13.9150 $10,433 $11.5958 $8,346 $9.2767 - - 25,000 $14,606 $14.2950 $12,172 $11.9125 $9,738 $9.5300 - - 50,000 $18,180 $36.3600 $15,150 $30.3000 $12,120 $24.2400 I-3 Institutional—6+ persons, restrained 500 $5,210 $68.5575 $4,342 $57.1313 $3,474 $45.7050 - - 2,500 $6,582 $76.7850 $5,485 $63.9875 $4,388 $51.1900 - - 5,000 $8,501 $60.3450 $7,084 $50.2875 $5,668 $40.2300 - - 10,000 $11,519 $12.7850 $9,599 $10.6542 $7,679 $8.5233 - - 25,000 $13,436 $13.1550 $11,197 $10.9625 $8,958 $8.7700 50,000 $16,725 $33.4500 $13,938 $27.8750 $11,150 $22.3000 I-4 Institutional—6+ persons, day care 500 $5,210 $68.5575 $4,342 $57.1313 $3,474 $45.7050 - - 2,500 $6,582 $76.7850 $5,485 $63.9875 $4,388 $51.1900 - - 5,000 $8,501 $60.3450 $7,084 $50.2875 $5,668 $40.2300 - - 10,000 $11,519 $12.7850 $9,599 $10.6542 $7,679 $8.5233 - - 25,000 $13,436 $13.1550 $11,197 $10.9625 $8,958 $8.7700 50,000 $16,725 $33.4500 $13,938 $27.8750 $11,150 $22.3000 I I Occupancy Tenant Improvements 100 $2,755 $181.2420 $2,296 $151.0350 $1,837 $120.8280 - - 500 $3,480 $202.9920 $2,900 $169.1600 $2,320 $135.3280 - - 1,000 $4,495 $159.4920 $3,746 $132.9100 $2,997 $106.3280 - - 2,000 $6,090 $33.8280 $5,075 $28.1900 $4,060 $22.5520 - - 5,000 $7,105 $34.8120 $5,921 $29.0100 $4,736 $23.2080 10,000 $8,845 $88.4520 $7,371 $73.7100 $5,897 $58.9680
M Mercantile 2,000 $7,336 $24.1238 $6,113 $20.1031 $4,890 $16.0825 - - 10,000 $9,266 $27.0450 $7,721 $22.5375 $6,177 $18.0300 - - 20,000 $11,970 $21.2400 $9,975 $17.7000 $7,980 $14.1600 - - 40,000 $16,218 $4.4950 $13,515 $3.7458 $10,812 $2.9967 - - 100,000 $18,915 $4.6350 $15,763 $3.8625 $12,610 $3.0900 - - 200,000 $23,550 $11.7750 $19,625 $9.8125 $15,700 $7.8500 M M Occupancy Tenant Improvements 300 $3,260 $71.4900 $2,717 $59.5750 $2,173 $47.6600 - - 1,500 $4,118 $80.0550 $3,431 $66.7125 $2,745 $53.3700 - - 3,000 $5,319 $62.9250 $4,432 $52.4375 $3,546 $41.9500 - - 6,000 $7,206 $13.3300 $6,005 $11.1083 $4,804 $8.8867 - - 15,000 $8,406 $13.7400 $7,005 $11.4500 $5,604 $9.1600 - - 30,000 $10,467 $34.8900 $8,723 $29.0750 $6,978 $23.2600 R-1 Residential—Hotels & Motels 3,000 $10,880 $4.7700 $9,067 $3.9750 $7,253 $3.1800 - - 15,000 $11,453 $15.2700 $9,544 $12.7250 $7,635 $10.1800 - - 30,000 $13,743 $1.9200 $11,453 $1.6000 $9,162 $1.2800 - - 60,000 $14,319 $2.5400 $11,933 $2.1167 $9,546 $1.6933 - - 150,000 $16,605 $0.3900 $13,838 $0.3250 $11,070 $0.2600 - - 300,000 $17,190 $5.7300 $14,325 $4.7750 $11,460 $3.8200 R-2 Residential—Apartment Building 800 $9,879 $16.2525 $8,232 $13.5438 $6,586 $10.8350 - - 4,000 $10,399 $51.9750 $8,666 $43.3125 $6,932 $34.6500 - - 8,000 $12,478 $6.5100 $10,398 $5.4250 $8,318 $4.3400 - - 16,000 $12,998 $8.6650 $10,832 $7.2208 $8,666 $5.7767 - - 40,000 $15,078 $1.3050 $12,565 $1.0875 $10,052 $0.8700 - - 80,000 $15,600 $19.5000 $13,000 $16.2500 $10,400 $13.0000 R-3 Dwellings—Custom Homes, Models, First Master Plan 1,000 $4,950 $14.7750 $4,125 $12.3125 $3,300 $9.8500 - - 2,500 $5,172 $59.1850 $4,310 $49.3208 $3,448 $39.4567 - - 4,000 $6,059 $11.0850 $5,050 $9.2375 $4,040 $7.3900 - - 6,000 $6,281 $44.3850 $5,234 $36.9875 $4,187 $29.5900 - - 8,000 $7,169 $11.0850 $5,974 $9.2375 $4,779 $7.3900 - - 10,000 $7,391 $73.9050 $6,159 $61.5875 $4,927 $49.2700 533
CC 05-17-2022
533 of 2420
New Construction - Plan Check Fees

Page 4 of 5 ends

Construction Type Construction Type Construction Type

IA, IB IIA, IIB, IIIA, IIIB, IV VA, VB
IBC
Class IBC Occupancy Type
Project Size
Threshold
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
R-3 Dwellings—Production Phase 1,000 $1,922 $6.7400 $1,602 $5.6167 $1,282 $4.4933 - of Master Plan (repeats) 2,500 $2,024 $26.9800 $1,686 $22.4833 $1,349 $17.9867 - - 4,000 $2,428 $5.0850 $2,024 $4.2375 $1,619 $3.3900
- - 6,000 $2,530 $20.2050 $2,108 $16.8375 $1,687 $13.4700 - - 8,000 $2,934 $5.1000 $2,445 $4.2500 $1,956 $3.4000
- - 10,000 $3,036 $30.3600 $2,530 $25.3000 $2,024 $20.2400 R-3 Dwellings—Alternate Materials 1,000 $4,382 $15.3750 $3,651 $12.8125 $2,921 $10.2500 - - 2,500 $4,612 $61.4850 $3,843 $51.2375 $3,075 $40.9900 - - 4,000 $5,534 $11.5500 $4,612 $9.6250 $3,690 $7.7000 - - 6,000 $5,765 $46.1100 $4,805 $38.4250 $3,844 $30.7400 - - 8,000 $6,688 $11.5200 $5,573 $9.6000 $4,458 $7.6800 - - 10,000 $6,918 $69.1800 $5,765 $57.6500 $4,612 $46.1200 R-3 Dwellings—Hillside - Custom Homes, Models 1,000 $5,787 $20.3050 $4,822 $16.9208 $3,858 $13.5367 - First Master Plan 2,500 $6,091 $81.2050 $5,076 $67.6708 $4,061 $54.1367 - - 4,000 $7,309 $15.2400 $6,091 $12.7000 $4,873 $10.1600 - - 6,000 $7,614 $60.9000 $6,345 $50.7500 $5,076 $40.6000 - - 8,000 $8,832 $15.2250 $7,360 $12.6875 $5,888 $10.1500 - - 10,000 $9,137 $91.3650 $7,614 $76.1375 $6,091 $60.9100 R-3 Dwellings—Hillside - Production Phase 1,000 $1,922 $6.7400 $1,602 $5.6167 $1,282 $4.4933 - of Master Plan (repeats) 2,500 $2,024 $26.9800 $1,686 $22.4833 $1,349 $17.9867 - - 4,000 $2,428 $5.0850 $2,024 $4.2375 $1,619 $3.3900
- - 6,000 $2,530 $20.2050 $2,108 $16.8375 $1,687 $13.4700 - - 8,000 $2,934 $5.1000 $2,445 $4.2500 $1,956 $3.4000
- - 10,000 $3,036 $30.3600 $2,530 $25.3000 $2,024 $20.2400 R-3 Dwellings—Hillside - Alternate Materials 1,000 $4,382 $15.3750 $3,651 $12.8125 $2,921 $10.2500 - - 2,500 $4,612 $61.4850 $3,843 $51.2375 $3,075 $40.9900 - - 4,000 $5,534 $11.5500 $4,612 $9.6250 $3,690 $7.7000 - - 6,000 $5,765 $46.1100 $4,805 $38.4250 $3,844 $30.7400 - - 8,000 $6,688 $11.5200 $5,573 $9.6000 $4,458 $7.6800 - - 10,000 $6,918 $69.1800 $5,765 $57.6500 $4,612 $46.1200 R-3 Group Care 1,000 $8,184 $10.7663 $6,820 $8.9719 $5,456 $7.1775 - - 5,000 $8,615 $34.4700 $7,179 $28.7250 $5,743 $22.9800 - - 10,000 $10,338 $4.2900 $8,615 $3.5750 $6,892 $2.8600 - - 20,000 $10,767 $5.7350 $8,973 $4.7792 $7,178 $3.8233 - - 50,000 $12,488 $0.8550 $10,406 $0.7125 $8,325 $0.5700 - - 100,000 $12,915 $12.9150 $10,763 $10.7625 $8,610 $8.6100 R-4 Group Care 100 $4,619 $60.7725 $3,849 $50.6438 $3,079 $40.5150 - - 500 $4,862 $194.4900 $4,052 $162.0750 $3,241 $129.6600 - - 1,000 $5,834 $24.3000 $4,862 $20.2500 $3,890 $16.2000 - - 2,000 $6,077 $32.4200 $5,065 $27.0167 $4,052 $21.6133 - - 5,000 $7,050 $4.8600 $5,875 $4.0500 $4,700 $3.2400
10,000 $7,293 $72.9300 $6,078 $60.7750 $4,862 $48.6200
R R Occupancy Tenant Improvements 80 $2,692 $44.2688 $2,243 $36.8906 $1,794 $29.5125 - - 400 $2,833 $141.6750 $2,361 $118.0625 $1,889 $94.4500 - - 800 $3,400 $17.7150 $2,833 $14.7625 $2,267 $11.8100 - - 1,600 $3,542 $23.6050 $2,951 $19.6708 $2,361 $15.7367 - - 4,000 $4,108 $3.5550 $3,424 $2.9625 $2,739 $2.3700
- - 8,000 $4,250 $53.1300 $3,542 $44.2750 $2,834 $35.4200 S-1 Storage—Moderate Hazard 600 $3,766 $41.2980 $3,139 $34.4150 $2,511 $27.5320 - - 3,000 $4,757 $46.2600 $3,965 $38.5500 $3,172 $30.8400 - - 6,000 $6,145 $36.3480 $5,121 $30.2900 $4,097 $24.2320 - - 12,000 $8,326 $7.7040 $6,938 $6.4200 $5,551 $5.1360 - - 30,000 $9,713 $7.9200 $8,094 $6.6000 $6,475 $5.2800 - - 60,000 $12,089 $20.1480 $10,074 $16.7900 $8,059 $13.4320 S-2 Storage—Low Hazard 10,000 $8,696 $5.7113 $7,246 $4.7594 $5,797 $3.8075 - - 50,000 $10,980 $6.4200 $9,150 $5.3500 $7,320 $4.2800 - - 100,000 $14,190 $5.0400 $11,825 $4.2000 $9,460 $3.3600 - - 200,000 $19,230 $1.0650 $16,025 $0.8875 $12,820 $0.7100 - - 500,000 $22,425 $1.0950 $18,688 $0.9125 $14,950 $0.7300 - - 1,000,000 $27,900 $2.7900 $23,250 $2.3250 $18,600 $1.8600 S S Occupancy Tenant Improvements 600 $3,398 $37.2488 $2,831 $31.0406 $2,265 $24.8325 - - 3,000 $4,292 $41.7450 $3,576 $34.7875 $2,861 $27.8300 - - 6,000 $5,544 $32.7900 $4,620 $27.3250 $3,696 $21.8600 - - 12,000 $7,511 $6.9450 $6,260 $5.7875 $5,008 $4.6300 - - 30,000 $8,762 $7.1550 $7,301 $5.9625 $5,841 $4.7700 60,000 $10,908 $18.1800 $9,090 $15.1500 $7,272 $12.1200 534
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Construction Type Construction Type Construction Type

SHELL BUILDINGS
- All Shell Buildings 500 $2,896 $38.1120 $2,413 $31.7600 $1,931 $25.4080 - - 2,500 $3,658 $42.6720 $3,049 $35.5600 $2,439 $28.4480 - - 5,000 $4,725 $33.5400 $3,938 $27.9500 $3,150 $22.3600 - - 10,000 $6,402 $7.1200 $5,335 $5.9333 $4,268 $4.7467 - - 25,000 $7,470 $7.3200 $6,225 $6.1000 $4,980 $4.8800 - - 50,000 $9,300 $18.6000 $7,750 $15.5000 $6,200 $12.4000 * Each additional 100 square feet, or portion thereof, up to the next highest project size threshold. 535
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Construction Type Construction Type Construction Type

IA, IB IIA, IIB, IIIA, IIIB, IV VA, VB
IBC
Class IBC Occupancy Type
Project Size
Threshold
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
A-1 Assembly—Fixed Seating 1,000 $3,557 $28.9450 $2,964 $24.1208 $2,371 $19.2967 - Theater, Concert Hall 5,000 $4,715 $31.4300 $3,929 $26.1917 $3,143 $20.9533 - - 10,000 $6,286 $14.0600 $5,238 $11.7167 $4,191 $9.3733 - - 20,000 $7,692 $4.1433 $6,410 $3.4528 $5,128 $2.7622 - - 50,000 $8,935 $6.9500 $7,446 $5.7917 $5,957 $4.6333 - - 100,000 $12,410 $12.4100 $10,342 $10.3417 $8,273 $8.2733 A-2 Assembly—Food & Drink 250 $3,138 $102.1838 $2,615 $85.1531 $2,092 $68.1225 - Restaurant, Night Club, Bar 1,250 $4,160 $110.9250 $3,467 $92.4375 $2,773 $73.9500 - - 2,500 $5,547 $49.6350 $4,622 $41.3625 $3,698 $33.0900 - - 5,000 $6,788 $14.6000 $5,656 $12.1667 $4,525 $9.7333 - - 12,500 $7,883 $24.5100 $6,569 $20.4250 $5,255 $16.3400 - - 25,000 $10,946 $43.7850 $9,122 $36.4875 $7,298 $29.1900 A-3 Assembly—Worship, Amusement 1,000 $5,335 $43.4175 $4,446 $36.1813 $3,557 $28.9450 - Arcade, Church, Community Hall 5,000 $7,072 $47.1450 $5,893 $39.2875 $4,715 $31.4300 - - 10,000 $9,429 $21.0900 $7,858 $17.5750 $6,286 $14.0600 - - 20,000 $11,538 $6.2150 $9,615 $5.1792 $7,692 $4.1433 - - 50,000 $13,403 $10.4250 $11,169 $8.6875 $8,935 $6.9500 - - 100,000 $18,615 $18.6150 $15,513 $15.5125 $12,410 $12.4100 A-4 Assembly—Indoor Sport Viewing 500 $3,088 $50.2740 $2,573 $41.8950 $2,059 $33.5160 - Arena, Skating Rink, Tennis Court 2,500 $4,094 $54.5880 $3,411 $45.4900 $2,729 $36.3920 - - 5,000 $5,458 $24.4200 $4,549 $20.3500 $3,639 $16.2800 - - 10,000 $6,679 $7.1720 $5,566 $5.9767 $4,453 $4.7813 - - 25,000 $7,755 $12.0600 $6,463 $10.0500 $5,170 $8.0400 - - 50,000 $10,770 $21.5400 $8,975 $17.9500 $7,180 $14.3600 A-5 Assembly—Outdoor Activities 500 $3,389 $55.1775 $2,824 $45.9813 $2,260 $36.7850 - Amusement Park, Bleacher, Stadium 2,500 $4,493 $59.8950 $3,744 $49.9125 $2,995 $39.9300 - - 5,000 $5,990 $26.8050 $4,992 $22.3375 $3,994 $17.8700 - - 10,000 $7,331 $7.8800 $6,109 $6.5667 $4,887 $5.2533 - - 25,000 $8,513 $13.2300 $7,094 $11.0250 $5,675 $8.8200 - - 50,000 $11,820 $23.6400 $9,850 $19.7000 $7,880 $15.7600 A A Occupancy Tenant Improvements 500 $3,389 $55.1775 $2,824 $45.9813 $2,260 $36.7850 - - 2,500 $4,493 $59.8950 $3,744 $49.9125 $2,995 $39.9300 - - 5,000 $5,990 $26.8050 $4,992 $22.3375 $3,994 $17.8700 - - 10,000 $7,331 $7.8800 $6,109 $6.5667 $4,887 $5.2533 - - 25,000 $8,513 $13.2300 $7,094 $11.0250 $5,675 $8.8200 - - 50,000 $11,820 $23.6400 $9,850 $19.7000 $7,880 $15.7600 B Business—Bank 500 $3,515 $57.2288 $2,929 $47.6906 $2,343 $38.1525 - - 2,500 $4,659 $62.1150 $3,883 $51.7625 $3,106 $41.4100 - - 5,000 $6,212 $27.7950 $5,177 $23.1625 $4,142 $18.5300 - - 10,000 $7,602 $8.1700 $6,335 $6.8083 $5,068 $5.4467 - - 25,000 $8,828 $13.7400 $7,356 $11.4500 $5,885 $9.1600 - - 50,000 $12,263 $24.5250 $10,219 $20.4375 $8,175 $16.3500 B Business—Laundromat 200 $3,138 $127.7138 $2,615 $106.4281 $2,092 $85.1425 - - 1,000 $4,160 $138.6750 $3,467 $115.5625 $2,773 $92.4500 - - 2,000 $5,547 $62.0250 $4,622 $51.6875 $3,698 $41.3500 - - 4,000 $6,787 $18.2550 $5,656 $15.2125 $4,525 $12.1700 - - 10,000 $7,883 $30.6450 $6,569 $25.5375 $5,255 $20.4300 - - 20,000 $10,947 $54.7350 $9,123 $45.6125 $7,298 $36.4900 B Business—Clinic, Outpatient 500 $3,578 $58.2338 $2,981 $48.5281 $2,385 $38.8225 - - 2,500 $4,742 $63.2400 $3,952 $52.7000 $3,162 $42.1600 - - 5,000 $6,323 $28.2750 $5,269 $23.5625 $4,216 $18.8500 - - 10,000 $7,737 $8.3200 $6,448 $6.9333 $5,158 $5.5467 - - 25,000 $8,985 $13.9800 $7,488 $11.6500 $5,990 $9.3200 - - 50,000 $12,480 $24.9600 $10,400 $20.8000 $8,320 $16.6400 B Business—Professional Office 1,000 $4,770 $38.8275 $3,975 $32.3563 $3,180 $25.8850 - - 5,000 $6,323 $42.1650 $5,269 $35.1375 $4,216 $28.1100 - - 10,000 $8,432 $18.8550 $7,026 $15.7125 $5,621 $12.5700 - - 20,000 $10,317 $5.5350 $8,598 $4.6125 $6,878 $3.6900 - - 50,000 $11,978 $9.3150 $9,981 $7.7625 $7,985 $6.2100 - - 100,000 $16,635 $16.6350 $13,863 $13.8625 $11,090 $11.0900 B B Occupancy Tenant Improvements 300 $2,762 $74.9250 $2,301 $62.4375 $1,841 $49.9500 - - 1,500 $3,661 $81.3600 $3,051 $67.8000 $2,441 $54.2400 - - 3,000 $4,881 $36.4050 $4,068 $30.3375 $3,254 $24.2700 - - 6,000 $5,973 $10.7050 $4,978 $8.9208 $3,982 $7.1367 - - 15,000 $6,937 $17.9850 $5,781 $14.9875 $4,625 $11.9900 - - 30,000 $9,635 $32.1150 $8,029 $26.7625 $6,423 $21.4100

CITY OF CUPERTINO, CA
Building Division
Schedule of New Construction Fees

INSPECTION FEES ONLY
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Construction Type Construction Type Construction Type

IA, IB IIA, IIB, IIIA, IIIB, IV VA, VB
IBC
Class IBC Occupancy Type
Project Size
Threshold
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
E Educational— Preschool / School 100 $2,699 $219.6713 $2,249 $183.0594 $1,799 $146.4475 - - 500 $3,578 $238.5150 $2,981 $198.7625 $2,385 $159.0100 - - 1,000 $4,770 $106.6950 $3,975 $88.9125 $3,180 $71.1300 - - 2,000 $5,837 $31.3800 $4,864 $26.1500 $3,891 $20.9200 - - 5,000 $6,779 $52.7100 $5,649 $43.9250 $4,519 $35.1400 - - 10,000 $9,414 $94.1400 $7,845 $78.4500 $6,276 $62.7600 E E Occupancy Tenant Improvements 100 $2,511 $204.3450 $2,092 $170.2875 $1,674 $136.2300 - - 500 $3,328 $221.8650 $2,773 $184.8875 $2,219 $147.9100 - - 1,000 $4,437 $99.2700 $3,698 $82.7250 $2,958 $66.1800 - - 2,000 $5,430 $29.2000 $4,525 $24.3333 $3,620 $19.4667 - - 5,000 $6,306 $49.0500 $5,255 $40.8750 $4,204 $32.7000 - - 10,000 $8,759 $87.5850 $7,299 $72.9875 $5,839 $58.3900 F-1 Factory Industrial—Moderate Hazard 1,000 $3,994 $28.8450 $3,328 $24.0375 $2,662 $19.2300 - - 5,000 $5,147 $30.1800 $4,290 $25.1500 $3,432 $20.1200 - - 10,000 $6,656 $15.9720 $5,547 $13.3100 $4,438 $10.6480 - - 20,000 $8,254 $4.4280 $6,878 $3.6900 $5,502 $2.9520 - - 50,000 $9,582 $7.4520 $7,985 $6.2100 $6,388 $4.9680 - - 100,000 $13,308 $13.3080 $11,090 $11.0900 $8,872 $8.8720 F-2 Factory Industrial—Low Hazard 1,000 $4,707 $38.3175 $3,923 $31.9313 $3,138 $25.5450 - - 5,000 $6,240 $41.6100 $5,200 $34.6750 $4,160 $27.7400 - - 10,000 $8,321 $18.6150 $6,934 $15.5125 $5,547 $12.4100 - - 20,000 $10,182 $5.4600 $8,485 $4.5500 $6,788 $3.6400 - - 50,000 $11,820 $9.2100 $9,850 $7.6750 $7,880 $6.1400 - - 100,000 $16,425 $16.4250 $13,688 $13.6875 $10,950 $10.9500 F F Occupancy Tenant Improvements 1,000 $3,163 $25.7520 $2,636 $21.4600 $2,109 $17.1680 - - 5,000 $4,193 $27.9480 $3,495 $23.2900 $2,796 $18.6320 - - 10,000 $5,591 $12.5160 $4,659 $10.4300 $3,727 $8.3440 - - 20,000 $6,842 $3.6720 $5,702 $3.0600 $4,562 $2.4480 - - 50,000 $7,944 $6.1920 $6,620 $5.1600 $5,296 $4.1280 - - 100,000 $11,040 $11.0400 $9,200 $9.2000 $7,360 $7.3600 H-1 High Hazard Group H-1 100 $2,260 $183.9175 $1,883 $153.2646 $1,506 $122.6117 - - 500 $2,995 $199.6800 $2,496 $166.4000 $1,997 $133.1200 - - 1,000 $3,994 $89.3200 $3,328 $74.4333 $2,662 $59.5467 - - 2,000 $4,887 $26.2733 $4,072 $21.8944 $3,258 $17.5156 - - 5,000 $5,675 $44.1400 $4,729 $36.7833 $3,783 $29.4267 - - 10,000 $7,882 $78.8200 $6,568 $65.6833 $5,255 $52.5467 H-2 High Hazard Group H-2 100 $2,711 $220.7010 $2,260 $183.9175 $1,808 $147.1340 - - 500 $3,594 $239.6160 $2,995 $199.6800 $2,396 $159.7440 - - 1,000 $4,792 $107.1840 $3,994 $89.3200 $3,195 $71.4560 - - 2,000 $5,864 $31.5280 $4,887 $26.2733 $3,909 $21.0187 - - 5,000 $6,810 $52.9680 $5,675 $44.1400 $4,540 $35.3120 - - 10,000 $9,458 $94.5840 $7,882 $78.8200 $6,306 $63.0560 H-3 High Hazard Group H-3 100 $3,389 $275.8763 $2,824 $229.8969 $2,260 $183.9175 - - 500 $4,493 $299.5200 $3,744 $249.6000 $2,995 $199.6800 - - 1,000 $5,990 $133.9800 $4,992 $111.6500 $3,994 $89.3200 - - 2,000 $7,330 $39.4100 $6,109 $32.8417 $4,887 $26.2733 - - 5,000 $8,513 $66.2100 $7,094 $55.1750 $5,675 $44.1400 - - 10,000 $11,823 $118.2300 $9,853 $98.5250 $7,882 $78.8200 H-4 High Hazard Group H-4 100 $2,711 $220.7010 $2,260 $183.9175 $1,808 $147.1340 - - 500 $3,594 $239.6160 $2,995 $199.6800 $2,396 $159.7440 - - 1,000 $4,792 $107.1840 $3,994 $89.3200 $3,195 $71.4560 - - 2,000 $5,864 $31.5280 $4,887 $26.2733 $3,909 $21.0187 - - 5,000 $6,810 $52.9680 $5,675 $44.1400 $4,540 $35.3120 - - 10,000 $9,458 $94.5840 $7,882 $78.8200 $6,306 $63.0560 H-5 High Hazard Group H-5 100 $2,711 $220.7010 $2,260 $183.9175 $1,808 $147.1340 - - 500 $3,594 $239.6160 $2,995 $199.6800 $2,396 $159.7440 - - 1,000 $4,792 $107.1840 $3,994 $89.3200 $3,195 $71.4560 - - 2,000 $5,864 $31.5280 $4,887 $26.2733 $3,909 $21.0187 - - 5,000 $6,810 $52.9680 $5,675 $44.1400 $4,540 $35.3120 - - 10,000 $9,458 $94.5840 $7,882 $78.8200 $6,306 $63.0560 H H Occupancy Tenant Improvements 100 $2,159 $175.7370 $1,799 $146.4475 $1,439 $117.1580 - - 500 $2,862 $190.8120 $2,385 $159.0100 $1,908 $127.2080 - - 1,000 $3,816 $85.3560 $3,180 $71.1300 $2,544 $56.9040 - - 2,000 $4,670 $25.1040 $3,891 $20.9200 $3,113 $16.7360 - - 5,000 $5,423 $42.1680 $4,519 $35.1400 $3,615 $28.1120 - - 10,000 $7,531 $75.3120 $6,276 $62.7600 $5,021 $50.2080 I-1 Institutional—7+ persons, ambulatory 500 $3,013 $49.0440 $2,511 $40.8700 $2,008 $32.6960 - - 2,500 $3,994 $53.2560 $3,328 $44.3800 $2,662 $35.5040 - - 5,000 $5,325 $23.8200 $4,438 $19.8500 $3,550 $15.8800 - - 10,000 $6,516 $7.0000 $5,430 $5.8333 $4,344 $4.6667 - - 25,000 $7,566 $11.7840 $6,305 $9.8200 $5,044 $7.8560 - - 50,000 $10,512 $21.0240 $8,760 $17.5200 $7,008 $14.0160 I-2 Institutional—6+ persons, non-ambulatory 500 $3,766 $61.3050 $3,138 $51.0875 $2,511 $40.8700 - - 2,500 $4,992 $66.5700 $4,160 $55.4750 $3,328 $44.3800 - - 5,000 $6,656 $29.7750 $5,547 $24.8125 $4,438 $19.8500 - - 10,000 $8,145 $8.7500 $6,788 $7.2917 $5,430 $5.8333 - - 25,000 $9,458 $14.7300 $7,881 $12.2750 $6,305 $9.8200 - - 50,000 $13,140 $26.2800 $10,950 $21.9000 $8,760 $17.5200 538
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Construction Type Construction Type Construction Type

IA, IB IIA, IIB, IIIA, IIIB, IV VA, VB
IBC
Class IBC Occupancy Type
Project Size
Threshold
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
I-3 Institutional—6+ persons, restrained 500 $3,766 $61.3050 $3,138 $51.0875 $2,511 $40.8700 - - 2,500 $4,992 $66.5700 $4,160 $55.4750 $3,328 $44.3800 - - 5,000 $6,656 $29.7750 $5,547 $24.8125 $4,438 $19.8500 - - 10,000 $8,145 $8.7500 $6,788 $7.2917 $5,430 $5.8333 - - 25,000 $9,458 $14.7300 $7,881 $12.2750 $6,305 $9.8200 - - 50,000 $13,140 $26.2800 $10,950 $21.9000 $8,760 $17.5200 I-4 Institutional—6+ persons, day care 500 $3,766 $61.3050 $3,138 $51.0875 $2,511 $40.8700 - - 2,500 $4,992 $66.5700 $4,160 $55.4750 $3,328 $44.3800 - - 5,000 $6,656 $29.7750 $5,547 $24.8125 $4,438 $19.8500 - - 10,000 $8,145 $8.7500 $6,788 $7.2917 $5,430 $5.8333 - - 25,000 $9,458 $14.7300 $7,881 $12.2750 $6,305 $9.8200 - - 50,000 $13,140 $26.2800 $10,950 $21.9000 $8,760 $17.5200 I I Occupancy Tenant Improvements 100 $2,109 $171.6570 $1,757 $143.0475 $1,406 $114.4380 - - 500 $2,796 $186.3600 $2,330 $155.3000 $1,864 $124.2400 - - 1,000 $3,727 $83.3880 $3,106 $69.4900 $2,485 $55.5920 - - 2,000 $4,561 $24.5200 $3,801 $20.4333 $3,041 $16.3467 - - 5,000 $5,297 $41.2080 $4,414 $34.3400 $3,531 $27.4720 - - 10,000 $7,357 $73.5720 $6,131 $61.3100 $4,905 $49.0480 M Mercantile 2,000 $5,335 $21.7200 $4,446 $18.1000 $3,557 $14.4800 - - 10,000 $7,073 $23.5650 $5,894 $19.6375 $4,715 $15.7100 - - 20,000 $9,429 $10.5450 $7,858 $8.7875 $6,286 $7.0300 - - 40,000 $11,538 $3.0950 $9,615 $2.5792 $7,692 $2.0633 - - 100,000 $13,395 $5.2050 $11,163 $4.3375 $8,930 $3.4700 - - 200,000 $18,600 $9.3000 $15,500 $7.7500 $12,400 $6.2000 M M Occupancy Tenant Improvements 300 $3,138 $85.1475 $2,615 $70.9563 $2,092 $56.7650 - - 1,500 $4,160 $92.4450 $3,467 $77.0375 $2,773 $61.6300 - - 3,000 $5,547 $41.3700 $4,622 $34.4750 $3,698 $27.5800 - - 6,000 $6,788 $12.1550 $5,657 $10.1292 $4,525 $8.1033 - - 15,000 $7,882 $20.4450 $6,568 $17.0375 $5,255 $13.6300 - - 30,000 $10,949 $36.4950 $9,124 $30.4125 $7,299 $24.3300 R-1 Residential—Hotels & Motels 3,000 $8,786 $9.1538 $7,322 $7.6281 $5,857 $6.1025 - - 15,000 $9,884 $7.3350 $8,237 $6.1125 $6,590 $4.8900 - - 30,000 $10,985 $5.4750 $9,154 $4.5625 $7,323 $3.6500 - - 60,000 $12,627 $0.8200 $10,523 $0.6833 $8,418 $0.5467 - - 150,000 $13,365 $1.3500 $11,138 $1.1250 $8,910 $0.9000 - - 300,000 $15,390 $5.1300 $12,825 $4.2750 $10,260 $3.4200 R-2 Residential—Apartment Building 800 $6,922 $27.0375 $5,769 $22.5313 $4,615 $18.0250 - - 4,000 $7,787 $21.6450 $6,490 $18.0375 $5,192 $14.4300 - - 8,000 $8,653 $16.2150 $7,211 $13.5125 $5,769 $10.8100 - - 16,000 $9,950 $2.4150 $8,292 $2.0125 $6,634 $1.6100 - - 40,000 $10,530 $3.9450 $8,775 $3.2875 $7,020 $2.6300 - - 80,000 $12,108 $15.1350 $10,090 $12.6125 $8,072 $10.0900 R-3 Dwellings—Custom Homes, Models, First Master Plan 1,000 $5,325 $44.3600 $4,437 $36.9667 $3,550 $29.5733 - - 2,500 $5,990 $44.3700 $4,992 $36.9750 $3,994 $29.5800 - - 4,000 $6,656 $49.9350 $5,547 $41.6125 $4,437 $33.2900 - - 6,000 $7,655 $22.1550 $6,379 $18.4625 $5,103 $14.7700 - - 8,000 $8,098 $61.0200 $6,748 $50.8500 $5,398 $40.6800 - - 10,000 $9,318 $93.1800 $7,765 $77.6500 $6,212 $62.1200 R-3 Dwellings—Production Phase 1,000 $5,325 $44.3600 $4,437 $36.9667 $3,550 $29.5733 - of Master Plan (repeats) 2,500 $5,990 $44.3700 $4,992 $36.9750 $3,994 $29.5800 - - 4,000 $6,656 $49.9350 $5,547 $41.6125 $4,437 $33.2900 - - 6,000 $7,655 $22.1550 $6,379 $18.4625 $5,103 $14.7700 - - 8,000 $8,098 $61.0200 $6,748 $50.8500 $5,398 $40.6800 - - 10,000 $9,318 $93.1800 $7,765 $77.6500 $6,212 $62.1200 R-3 Dwellings—Alternate Materials 1,000 $5,325 $44.3600 $4,437 $36.9667 $3,550 $29.5733 - - 2,500 $5,990 $44.3700 $4,992 $36.9750 $3,994 $29.5800 - - 4,000 $6,656 $49.9350 $5,547 $41.6125 $4,437 $33.2900 - - 6,000 $7,655 $22.1550 $6,379 $18.4625 $5,103 $14.7700 - - 8,000 $8,098 $61.0200 $6,748 $50.8500 $5,398 $40.6800 - - 10,000 $9,318 $93.1800 $7,765 $77.6500 $6,212 $62.1200 R-3 Dwellings—Hillside - Custom Homes, Models 1,000 $5,502 $45.8550 $4,585 $38.2125 $3,668 $30.5700 - First Master Plan 2,500 $6,190 $45.8450 $5,158 $38.2042 $4,127 $30.5633 - - 4,000 $6,878 $51.5700 $5,732 $42.9750 $4,585 $34.3800 - - 6,000 $7,909 $22.9200 $6,591 $19.1000 $5,273 $15.2800 - - 8,000 $8,368 $63.0450 $6,973 $52.5375 $5,578 $42.0300 - - 10,000 $9,629 $96.2850 $8,024 $80.2375 $6,419 $64.1900 R-3 Dwellings—Hillside - Production Phase 1,000 $5,502 $45.8550 $4,585 $38.2125 $3,668 $30.5700 - of Master Plan (repeats) 2,500 $6,190 $45.8450 $5,158 $38.2042 $4,127 $30.5633 - - 4,000 $6,878 $51.5700 $5,732 $42.9750 $4,585 $34.3800 - - 6,000 $7,909 $22.9200 $6,591 $19.1000 $5,273 $15.2800 - - 8,000 $8,368 $63.0450 $6,973 $52.5375 $5,578 $42.0300 - - 10,000 $9,629 $96.2850 $8,024 $80.2375 $6,419 $64.1900 R-3 Dwellings—Hillside - Alternate Materials 1,000 $5,502 $45.8550 $4,585 $38.2125 $3,668 $30.5700 - - 2,500 $6,190 $45.8450 $5,158 $38.2042 $4,127 $30.5633 - - 4,000 $6,878 $51.5700 $5,732 $42.9750 $4,585 $34.3800 - - 6,000 $7,909 $22.9200 $6,591 $19.1000 $5,273 $15.2800 - - 8,000 $8,368 $63.0450 $6,973 $52.5375 $5,578 $42.0300 - - 10,000 $9,629 $96.2850 $8,024 $80.2375 $6,419 $64.1900 539
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Inspection - New Construction Fee Schedule

Page 4 of 4 ends

Construction Type Construction Type Construction Type

IA, IB IIA, IIB, IIIA, IIIB, IV VA, VB
IBC
Class IBC Occupancy Type
Project Size
Threshold
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
Base Cost
@
Threshold
Size
Cost for
Each
Additional
100 sf *
R-3 Group Care 1,000 $7,100 $22.1963 $5,916 $18.4969 $4,733 $14.7975 - - 5,000 $7,988 $17.7300 $6,656 $14.7750 $5,325 $11.8200 - - 10,000 $8,874 $13.3200 $7,395 $11.1000 $5,916 $8.8800 - - 20,000 $10,206 $1.9800 $8,505 $1.6500 $6,804 $1.3200 - - 50,000 $10,800 $3.2400 $9,000 $2.7000 $7,200 $2.1600 - - 100,000 $12,420 $12.4200 $10,350 $10.3500 $8,280 $8.2800 R-4 Group Care 100 $4,437 $138.6675 $3,698 $115.5563 $2,958 $92.4450 - - 500 $4,992 $110.9400 $4,160 $92.4500 $3,328 $73.9600 - - 1,000 $5,547 $83.1900 $4,622 $69.3250 $3,698 $55.4600 - - 2,000 $6,379 $12.3300 $5,316 $10.2750 $4,252 $8.2200 - - 5,000 $6,749 $20.3400 $5,624 $16.9500 $4,499 $13.5600 - - 10,000 $7,766 $77.6550 $6,471 $64.7125 $5,177 $51.7700 R R Occupancy Tenant Improvements 80 $3,905 $152.5350 $3,254 $127.1125 $2,603 $101.6900 - - 400 $4,393 $122.0100 $3,661 $101.6750 $2,929 $81.3400 - - 800 $4,881 $91.5150 $4,068 $76.2625 $3,254 $61.0100 - - 1,600 $5,613 $13.5700 $4,678 $11.3083 $3,742 $9.0467 - - 4,000 $5,939 $22.3800 $4,949 $18.6500 $3,959 $14.9200 - - 8,000 $6,834 $85.4250 $5,695 $71.1875 $4,556 $56.9500 S-1 Storage—Moderate Hazard 600 $2,812 $38.1480 $2,343 $31.7900 $1,875 $25.4320 - - 3,000 $3,727 $41.4240 $3,106 $34.5200 $2,485 $27.6160 - - 6,000 $4,970 $18.5160 $4,142 $15.4300 $3,313 $12.3440 - - 12,000 $6,081 $5.4560 $5,068 $4.5467 $4,054 $3.6373 - - 30,000 $7,063 $9.1440 $5,886 $7.6200 $4,709 $6.0960 - - 60,000 $9,806 $16.3440 $8,172 $13.6200 $6,538 $10.8960 S-2 Storage—Low Hazard 10,000 $8,097 $6.5888 $6,748 $5.4906 $5,398 $4.3925 - - 50,000 $10,733 $7.1550 $8,944 $5.9625 $7,155 $4.7700 - - 100,000 $14,310 $3.2100 $11,925 $2.6750 $9,540 $2.1400 - - 200,000 $17,520 $0.9350 $14,600 $0.7792 $11,680 $0.6233 - - 500,000 $20,325 $1.5750 $16,938 $1.3125 $13,550 $1.0500 - - 1,000,000 $28,200 $2.8200 $23,500 $2.3500 $18,800 $1.8800 S S Occupancy Tenant Improvements 600 $3,326 $45.1275 $2,772 $37.6063 $2,218 $30.0850 - - 3,000 $4,410 $49.0050 $3,675 $40.8375 $2,940 $32.6700 - - 6,000 $5,880 $21.9150 $4,900 $18.2625 $3,920 $14.6100 - - 12,000 $7,195 $6.4550 $5,996 $5.3792 $4,796 $4.3033 - - 30,000 $8,357 $10.8150 $6,964 $9.0125 $5,571 $7.2100 - - 60,000 $11,601 $19.3350 $9,668 $16.1125 $7,734 $12.8900 U Accessory—Private Garage / 40 $1,695 $344.8425 $1,412 $287.3688 $1,130 $229.8950 - Agricultural Building 200 $2,246 $374.4000 $1,872 $312.0000 $1,498 $249.6000 - - 400 $2,995 $167.4900 $2,496 $139.5750 $1,997 $111.6600 - - 800 $3,665 $49.2700 $3,054 $41.0583 $2,443 $32.8467 - - 2,000 $4,256 $82.7700 $3,547 $68.9750 $2,838 $55.1800 - - 4,000 $5,912 $147.7950 $4,927 $123.1625 $3,941 $98.5300 - Deferred Submittal - All Except R-3 1,000 $3,578 $29.1150 $2,981 $24.2625 $2,385 $19.4100 - - 5,000 $4,742 $31.6050 $3,952 $26.3375 $3,162 $21.0700 - - 10,000 $6,323 $14.1450 $5,269 $11.7875 $4,215 $9.4300 - - 20,000 $7,737 $4.1600 $6,448 $3.4667 $5,158 $2.7733 - - 50,000 $8,985 $6.9900 $7,488 $5.8250 $5,990 $4.6600 - - 100,000 $12,480 $12.4800 $10,400 $10.4000 $8,320 $8.3200 - Deferred Submittal - R-3 1,000 $3,766 $81.7400 $3,138 $68.1167 $2,511 $54.4933 - - 2,500 $4,992 $110.9200 $4,160 $92.4333 $3,328 $73.9467 - - 4,000 $6,656 $74.4600 $5,547 $62.0500 $4,437 $49.6400 - - 6,000 $8,145 $65.6700 $6,788 $54.7250 $5,430 $43.7800 - - 8,000 $9,458 $183.9300 $7,882 $153.2750 $6,306 $122.6200 - - 10,000 $13,137 $131.3700 $10,948 $109.4750 $8,758 $87.5800 - Standard Comm. Foundation 500 $4,615 $28.8338 $3,846 $24.0281 $3,077 $19.2225 - w/o Podium 2,500 $5,192 $23.0700 $4,326 $19.2250 $3,461 $15.3800 - - 5,000 $5,768 $17.3250 $4,807 $14.4375 $3,846 $11.5500 - - 10,000 $6,635 $2.5700 $5,529 $2.1417 $4,423 $1.7133 - - 25,000 $7,020 $4.2300 $5,850 $3.5250 $4,680 $2.8200 - - 50,000 $8,078 $16.1550 $6,731 $13.4625 $5,385 $10.7700

SHELL BUILDINGS
- All Shell Buildings 500 $2,511 $40.8660 $2,092 $34.0550 $1,674 $27.2440 - - 2,500 $3,328 $44.3880 $2,773 $36.9900 $2,219 $29.5920 - - 5,000 $4,438 $19.8480 $3,698 $16.5400 $2,958 $13.2320 - - 10,000 $5,430 $5.8400 $4,525 $4.8667 $3,620 $3.8933 - - 25,000 $6,306 $9.8160 $5,255 $8.1800 $4,204 $6.5440 - - 50,000 $8,760 $17.5200 $7,300 $14.6000 $5,840 $11.6800 * Each additional 100 square feet, or portion thereof, up to the next highest project size threshold. 540
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MECHANICAL, ELECTRICAL, & PLUMBING FEES
541
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FY 15-16 Budget
City of Cupertino, CA
Building Division
Matrix Consulting Group Page 1 of 3

MECHANICAL, ELECTRICAL & PLUMBING PERMIT FEES

FEE TYPES
Actual
Unit Cost
$ 2.47
ADMINISTRATIVE AND MISC. FEES
Travel and Documentation Fees: $ 50.29 $ 48.00 $ (2.29) 95% MECHANICAL PERMIT FEES $ 49.30 $ 48.00 $ (1.30) 97%
Stand Alone Mechanical Plan Check (hourly rate) $ 147.91 $ 143.00 $ (4.91) 97% UNIT FEES: 0%
Install/Relocate forced air or gravity-type furnace or burner (including attached ducts and vents) up to and including 100,000 Btu/h (each) $ 147.91 $ 143.00 $ (4.91) 97% Install/Relocate forced air or gravity-type furnace or burner (including attached ducts and vents) over 100,000 Btu/h (each) $ 147.91 $ 143.00 $ (4.91) 97% Install/Relocate floor furnace, including vent (each) $ 73.96 $ 72.00 $ (1.96) 97% Install/Relocate suspended heater, recessed wall heater, or floor-mounted unit heater (each) $ 73.96 $ 72.00 $ (1.96) 97%
Install/Relocate suspended heater, recessed wall heater, or floor-mounted unit heater (each) $ 73.96 $ 72.00 $ (1.96) 97%
Install/Relocate/Replace appliance vent installed and not included in an appliance permit (each) $ 73.96 $ 72.00 $ (1.96) 97%
Install/Relocate/Replace appliance vent installed and not included in an appliance permit (each) $ 73.96 $ 72.00 $ (1.96) 97%
Repair/Alter/Add heating appliance, refrigeration unit, cooling unit, absorption unit, or each heating, cooling, absorption, or evaporative cooling system, including installation of controls (each) - Residential $ 73.96 $ 72.00 $ (1.96) 97% Repair/Alter/Add heating appliance, refrigeration unit, cooling unit, absorption unit, or each heating, cooling, absorption, or evaporative cooling system, including installation of controls (each) - Commercial $ 147.91 $ 143.00 $ (4.91) 97% Install/Relocate boiler or compressor, up to and including 3HP, or absorption system up to and including 100,000 Btu/h (each) $ 147.91 $ 107.00 $ (40.91) 72% Install/Relocate boiler or compressor, over 3HP and up to and including 15 HP, or absorption system over 100,000 Btu/h and up to and including 500,000 Btu/h (each) $ 147.91 $ 132.00 $ (15.91) 89%
Install/Relocate boiler or compressor, over 15 HP and up to and including 30 HP, or absorption system over 500,000 Btu/h and up to and including 1,000,000 Btu/h (each) $ 184.89 $ 156.00 $ (28.89) 84%
Install/Relocate boiler or compressor, over 30 HP and up to and including 50 HP, or absorption system over 1,000,000 Btu/h and up to and including 1,750,000 Btu/h (each) $ 184.89 $ 179.00 $ (5.89) 97%
Install/Relocate boiler or compressor, over 50 HP, or absorption system over 1,750,000 Btu/h (each) $ 221.87 $ 203.00 $ (18.87) 91%
Air-handling unit, including attached ducts. (Note: this fee shall not apply to an airhandling unit that is a portion of a factory-assembled appliance, cooling unit, evaporative cooler, or absorption unit for which a permit is required elsewhere) (each) - Residential $ 73.96 $ 72.00 $ (1.96) 97%
Air-handling unit, including attached ducts. (Note: this fee shall not apply to an airhandling unit that is a portion of a factory-assembled appliance, cooling unit, evaporative cooler, or absorption unit for which a permit is required elsewhere) (each) - Commercial $ 221.87 $ 143.00 $ (78.87) 64%
Air-handling unit over 10,000 CFM (each) $ 147.91 $ 143.00 $ (4.91) 97% Ventilation fan connected to a single duct (each) $ 73.96 $ 25.00 $ (48.96) 34% Ventilation system that is not a portion of any heating or air-conditioning system authorized by a permit (each) $ 110.93 $ (110.93) 0%
Hood installation that is served by mechanical exhaust, including the ducts for such hood (each) - Residential $ 73.96 $ 36.00 $ (37.96) 49% Hood installation that is served by mechanical exhaust, including the ducts for such hood (each) - Commercial $ 221.87 $ 143.00 $ (78.87) 64% Appliance or piece of equipment not classed in other appliance categories, or for which no other fee is listed (each) $ 110.93 $ 107.00 $ (3.93) 96% OTHER FEES: $ - $ - 0%
Other Mechanical Inspections (per hour) $ 147.91 $ 143.00 $ (4.91) 97%

UNIT COSTS
Cost
Recovery
%
FY 14-15
Average
Current Fee
Subsidy to
Public per
Unit
542
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User Fee (Cost of Services) Study
FY 15-16 Budget
City of Cupertino, CA
Building Division
Matrix Consulting Group Page 2 of 3

FEE TYPES
Actual
Unit Cost
$ 2.47

UNIT COSTS
Cost
Recovery
%
FY 14-15
Average
Current Fee
Subsidy to
Public per
Unit
PLUMBING/GAS PERMIT FEES $ 50.29 $ 48.00 $ (2.29) 95%
Stand Alone Plumbing Plan Check (hourly rate) $ 147.91 $ 143.00 $ (4.91) 97% UNIT FEES:

Plumbing fixture or trap or set of fixtures on one trap, including water, drainage piping, and backflow protection (each) $ 10.35 $ 10.00 $ (0.35) 97% Building or trailer park sewer (each - Residential) $ 36.98 $ 25.00 $ (11.98) 68% Building or trailer park sewer (each - Commercial) $ 73.96 $ 25.00 $ (48.96) 34% Rainwater system inside building (per drain) $ 10.35 $ (10.35) 0% Cesspool (each) $ 147.91 $ 143.00 $ (4.91) 97%
Private sewage disposal system (each) $ 147.91 $ 143.00 $ (4.91) 97% Water Heater and/or vent (each) - Residential $ 36.98 $ 29.00 $ (7.98) 78% Water Heater and/or vent (each) - Commercial $ 110.93 $ 29.00 $ (81.93) 26% Industrial waste pretreatment interceptor, including its trap and vent, excepting kitchen-type grease interceptors functioning as fixture traps (each) $ 110.93 $ 36.00 $ (74.93) 32% Install/Alter/Repair water piping and/or water treating equipment (each) $ 50.29 $ 48.00 $ (2.29) 95% Repair/Alter drainage or vent piping (each fixture) $ 50.29 $ 48.00 $ (2.29) 95% Lawn sprinkler system on any one meter, including backflow protection devices therefore (each) $ 73.96 $ 72.00 $ (1.96) 97%
Backflow devices not included in other fee services, e.g., building/trailer park sewer (each) $ 73.96 $ 72.00 $ (1.96) 97%
Atmospheric-type vacuum breakers not included in other fee services, e.g., building/trailer park sewer (1-5 units) $ 73.96 $ 72.00 $ (1.96) 97% Atmospheric-type vacuum breakers not included in other fee services, e.g., building/trailer park sewer (each unit over 5 units) $ 73.96 $ 72.00 $ (1.96) 97% For each gas piping system of 1-4 outlets $ 73.96 $ 72.00 $ (1.96) 97% For each gas piping system of 1-4 outlets $ 73.96 $ 72.00 $ (1.96) 97% For each gas piping system of 5 or more outlets (each) $ 73.96 $ 72.00 $ (1.96) 97% Water Service (Residential) $ 36.98 $ 25.00 $ (11.98) 68% Re-pipe per fixture - Residential $ 14.79 $ 14.00 $ (0.79) 95% Re-pipe per fixture - Commercial $ 9.86 $ 9.00 $ (0.86) 91% OTHER FEES: $ - $ - 0%
Other Plumbing and Gas Inspections (per hour) $ 147.91 $ 143.00 $ (4.91) 97% 543
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User Fee (Cost of Services) Study
FY 15-16 Budget
City of Cupertino, CA
Building Division
Matrix Consulting Group Page 3 of 3

FEE TYPES
Actual
Unit Cost
$ 2.47

UNIT COSTS
Cost
Recovery
%
FY 14-15
Average
Current Fee
Subsidy to
Public per
Unit
ELECTRICAL PERMIT FEES $ 50.29 $ 48.00 $ (2.29) 95%
Stand Alone Electrical Plan Check (hourly rate) $ 147.91 $ 143.00 $ (4.91) 97% UNIT FEES:

Receptacle, Switch, and Lighting Outlets
Receptacle, switch, lighting, or other outlets at which current is used or controlled, except services, feeders, and meters
First 20 $ 50.29 $ 48.00 $ (2.29) 95%
Each Additional $ 4.44 $ 5.00 $ 0.56 113%
Lighting Fixtures $ - $ - 0%
Lighting Fixtures, sockets, or other lamp-holding devices $ - $ - 0% First 20 $ 73.96 $ 72.00 $ (1.96) 97%
Additional Fixtures, each $ 5.92 $ 6.00 $ 0.08 101%
Pole or platform-mounted lighting fixtures (each) $ 16.27 $ 16.00 $ (0.27) 98% Theatrical-type lighting fixtures or assemblies (each) $ 14.79 $ 14.00 $ (0.79) 95% Residential Appliances $ - 0%
Fixed residential appliances or receptacle outlets for same, including wallmounted electric ovens; counter mounted cooking tops; electric ranges; selfcontained room console or through-wall air conditioners; space heaters; food waste grinders; dishwashers; washing machines; water heaters; clothes dryers; or other motor-operated appliances (each) not exceeding one horsepower (HP) in rating (each) $ 25.14 $ 25.00 $ (0.14) 99%
Nonresidential Appliances $ - $ - 0%
Residential appliances and self-contained factory-wired, nonresidential appliances not exceeding one horsepower (HP), kilowatt (kW), or kilovoltampere (kVA) in rating, including medical and dental devices; food, beverage, and ice cream cabinets; illuminated show cases; drinking fountains; vending machines; laundry machines; or other similar types of equipment (each) $ 50.29 $ 48.00 $ (2.29) 95% Power Apparatus
Motors, generators, transformers, rectifiers, synchronous converters, capacitors, industrial heating, air conditioners and heat pumps, cooking or baking equipment, and other apparatus. Rating in horsepower (HP), kilowatts (kW), or kilovolt-amperes (kVA), or kilovolt-amperes-reactive (kVAR) $ 147.91 $ 143.00 $ (4.91) 97% 1 Unit $ 36.98 $ 36.00 $ (0.98) 97%
2 through 5 units, each additional $ 36.98 $ 36.00 $ (0.98) 97% 6 and over, each additional $ 36.98 $ 36.00 $ (0.98) 97% Busways $ - $ - 0%
Trolley and plug-in-type busways - each 100 feet or fraction thereof $ 73.96 $ 25.00 $ (48.96) 34% Signs, Outline Lighting, and Marquees $ - $ - 0%
Signs, Outline Lighting, or Marquees supplied from one branch circuit (each) $ 50.29 $ 48.00 $ (2.29) 95% Additional branch circuits within the same sign, outline lighting system, or marquee (each) $ 25.14 $ 25.00 $ (0.14) 99%
Services (Temporary Power) $ - $ - 0%
Services of 600 volts or less, up to 200 amperes in rating (each) $ 50.29 $ 48.00 $ (2.29) 95% Services of 600 volts or less, 201 to 1000 amperes in rating (each) $ 73.96 $ 72.00 $ (1.96) 97% Services over 600 volts or over 1000 amperes in rating (each) $ 87.27 $ 84.00 $ (3.27) 96% Fore services of 600 volts or less and not over 200 amperes in rating, each (Residential) $ 50.29 $ 48.00 $ (2.29) 95%
For services of 600 volts or less and over 200 amperes to 1,000 amperes in rating, each (Residential) $ 73.96 $ 72.00 $ (1.96) 97% For services over 600 volts over 1,000 amperes in rating, each (Residential) $ 147.91 $ 84.00 $ (63.91) 57% Miscellaneous Apparatus, Conduits, and Conductors $ - $ - 0% Electrical apparatus, conduits, and conductors for which a permit is required, but for which no fee is herein set forth $ 147.91 $ 143.00 $ (4.91) 97% OTHER FEES:

Other Electrical Inspections (per hour) $ 147.91 $ 143.00 $ (4.91) 97% 544
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MISCELLANEOUS BUILDING FEES
545
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User Fee (Cost of Services) Study
FY 15-16 Budget
City of Cupertino, CA
Building Division
Matrix Consulting Group Page 1 of 5

MISCELLANEOUS ITEMS PERMIT FEES

UNIT COSTS
Work Item Unit
Total Actual
Cost
Average
Current Fee
Subsidy to
Public per
Unit
Standard Hourly Rate $ 147.91 $ 143.00 $ (4.91) 97%
Accessibility Hardship Exemption 1 hour $ 147.91 $ 187.00 $ 39.09 126% Acoustical Review $ -
Single Family Home/Duplex—New each $ 369.78 $ 645.00 $ 275.22 174% Single Family Home/Duplex—Addition/Alteration each $ 221.87 $ 716.00 $ 494.13 323% Multi-Family/Commercial each $ 369.78 $ 286.00 $ (83.78) 77% Additions (R3 Occ) - Plan Check Fees $ -
Over the counter-(not hillside-has conventional framingMinimum 2 hours up to 250 sf $ 295.82 $ 286.00 $ (9.82) 97% Plan Check Fees (not hillside). up to 250 sf $ 295.82 $ 1,091.00 $ 795.18 369% Plan Check Fees (not hillside). 251-499 sf $ 591.64 $ 1,626.00 $ 1,034.36 275% each additional hour 1 hour $ 147.91 $ 143.00 $ (4.91) 97% Additions (R3 Occ) - Inspection Fees $ -
Inspection Fees (Not Hillside) up to 250 sf $ 739.55 $ 1,057.00 $ 317.45 143% Inspection Fees (Not Hillside) 251-499 sf $ 887.46 $ 1,323.00 $ 435.54 149% Address Assignment per hour $ 147.91 $ 359.00 $ 211.09 243% Administrative/Clerical Fee - 1/2 hour flat rate 1/2 hour $ 73.96 $ 45.00 $ (28.96) 61% Alternate Materials and Methods of Construction 1 hour $ 147.91 $ 187.00 $ 39.09 126% Antenna—Telecom Facility $ -
Radio each $ 369.78 $ 431.00 $ 61.22 117%
Cellular/Mobile Phone, free-standing each $ 813.51 $ 1,145.00 $ 331.49 141% Cellular/Mobile Phone, attached to building each $ 665.60 $ 1,145.00 $ 479.40 172% Arbor/Trellis each $ 295.82 $ - $ (295.82) 0%
Awning/Canopy (supported by building) each $ 295.82 $ 359.00 $ 63.18 121% Balcony Addition each $ 665.60 $ 788.00 $ 122.40 118%
Carport each $ 517.69 $ 645.00 $ 127.31 125%
Certifications
Special Inspector Qualifications (initial review) each $ 295.82 $ 286.00 $ (9.82) 97% Special Inspector Qualifications (renewal / update) each $ 147.91 $ 143.00 $ (4.91) 97% Special Inspector Certification Application each $ 5,028.97 $ 4,867.00 $ (161.97) 97% Materials Testing Lab Certification each $ 3,106.13 $ 3,006.00 $ (100.13) 97% Chimney each $ 443.73 $ 574.00 $ 130.27 129%
Chimney Repair each $ 295.82 $ 574.00 $ 278.18 194%
Close Existing Openings
Interior wall each $ 295.82 $ 503.00 $ 207.18 170%
Exterior wall each $ 443.73 $ 503.00 $ 59.27 113%
Commercial Coach (per unit) each unit $ 665.60 $ 859.00 $ 193.40 129% Covered Porch each $ 517.69 $ 1,003.00 $ 485.31 194%
Deck (wood) each $ 517.69 $ 503.00 $ (14.69) 97%
Deck Railing each $ 295.82 $ 503.00 $ 207.18 170%
Deferred Submittal (2 hour minimum) per hour $ 295.82 $ 143.00 $ (152.82) 48% Cost
Recovery %
546
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User Fee (Cost of Services) Study
FY 15-16 Budget
City of Cupertino, CA
Building Division
Matrix Consulting Group Page 2 of 5

UNIT COSTS
Work Item Unit
Total Actual
Cost
Average
Current Fee
Subsidy to
Public per
Unit
Cost
Recovery %
Demolition
Commercial (up to 3,000 sf) each $ 369.78 $ 574.00 $ 204.22 155% Commercial (each add'l 3,000 sf) each 3,000 sf $ 147.91 $ 286.00 $ 138.09 193% Residential (up to 3,000 sf) each $ 295.82 $ 574.00 $ 278.18 194% Residential (each add'l 3,000 sf) each 3,000 sf $ 147.91 $ 143.00 $ (4.91) 97% Demolition
Swimming Pool Residential each $ 295.82 $ 329.00 $ 33.18 111% Swimming Pool Commercial (up to 3,000 sf) each $ 443.73 $ 574.00 $ 130.27 129% Swimming Pool Commercial (each add'l 3,000 sf) each 3,000 sf $ 147.91 $ 286.00 $ 138.09 193% Disabled Access Compliance Inspection per hour $ 147.91 $ 143.00 $ (4.91) 97% Door
New door (non structural) each $ 221.87 $ 286.00 $ 64.13 129% New door (structural shear wall/masonry) each $ 295.82 $ 431.00 $ 135.18 146% Duplicate/Replacement Job Card each $ 73.96 $ 72.00 $ (1.96) 97% Electric Vehicle Charging Station each $ - $ 109.00 $ 109.00 0% Extensions
Plan Check Applications (within 180 days of Submittal) 1 hour $ 147.91 $ 187.00 $ 39.09 126% Permits (within 180 days of Issuance) $ - $ - 0%
Start construction, w/o plans 30 min $ 73.96 $ 72.00 $ (1.96) 97% Resume or complete construction, w/o plans 30 min $ 73.96 $ 72.00 $ (1.96) 97% Start construction, w/ plans 1 hour $ 147.91 $ 187.00 $ 39.09 126% Resume or complete construction, w/ plans 2 hours $ 295.82 $ 231.00 $ (64.82) 78% Fence
Non-masonry, over 6 feet in height up to 100 l.f. $ 295.82 $ 431.00 $ 135.18 146% Non-masonry, each additional 100 lf each 100 l.f. $ 73.96 $ 72.00 $ (1.96) 97% Masonry, over 6 feet in height up to 100 l.f. $ 517.69 $ 716.00 $ 198.31 138% Masonry, each additional 100 lf each 100 l.f. $ 295.82 $ 286.00 $ (9.82) 97% Fireplace
Masonry each $ 517.69 $ 716.00 $ 198.31 138%
Pre-Fabricated/Metal each $ 295.82 $ 503.00 $ 207.18 170% Flag pole (over 20 feet in height) each $ 295.82 $ 394.00 $ 98.18 133% Foundation Repair each $ 665.60 $859.00 $ 193.40 129%
Garage / Agricultural Buildings
Wood frame up to 1,000 sf each $ 961.42 $129.00 $ (832.42) 13% Masonry up to 1,000 sf each $ 1,257.24 $1,290.00 $ 32.76 103% Inspections
Standard Inspection Hourly Rate per hour $ 147.91 $143.00 $ (4.91) 97% Outside of normal business hours, 0-2 hours (minimum
charge) up to 2 hrs $ 295.82 $430.00 $ 134.18 145%
Each additional hour or portion thereof 1 hour $ 147.91 $ 214.00 $ 66.09 145% Reinspection fee—per hour 1 hour $ 147.91 $ 143.00 $ (4.91) 97% Progress Inspection per hour $ 147.91 $ 143.00 $ (4.91) 97% Partial Inspection per hour $ 147.91 $ 143.00 $ (4.91) 97% Courtesy Inspection - 2 hour minimum 2 hours $ 295.82 $ 286.00 $ (9.82) 97% 547
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User Fee (Cost of Services) Study
FY 15-16 Budget
City of Cupertino, CA
Building Division
Matrix Consulting Group Page 3 of 5

UNIT COSTS
Work Item Unit
Total Actual
Cost
Average
Current Fee
Subsidy to
Public per
Unit
Cost
Recovery %
Inspections for which no fee is specifically indicated—per hour (minimum charge = 1/2 hour) 1 hour $ 147.91 $ 143.00 $ (4.91) 97% Cancelled inspection w/out advance notice 1 hour $ 147.91 $ 143.00 $ (4.91) 97% Life Safety Report each $ 887.46 $ 859.00 $ (28.46) 97% Lighting pole each $ 369.78 $ 431.00 $ 61.22 117%
each add'l pole each $ 147.91 $ 431.00 $ 283.09 291%
Modular Structures each $ 665.60 $ 859.00 $ 193.40 129% Modification of Technical Code 1 hour $ 147.91 $ 187.00 $ 39.09 126% Partition—Commercial, Interior (up to 30 l.f.) up to 30 l.f. $ 443.73 $ 503.00 $ 59.27 113% Additional partition each 30 l.f. $ 147.91 $ 107.00 $ (40.91) 72% Partition—Residential, Interior (up to 30 l.f.) up to 30 l.f. $ 295.82 $ 503.00 $ 207.18 170% Additional partition each 30 l.f. $ 73.96 $ 107.00 $ 33.04 145% Patio Cover/ Sun Room
Wood frame up to 300 sf $ 369.78 $ 716.00 $ 346.22 194% Metal frame up to 300 sf $ 369.78 $ 716.00 $ 346.22 194% Other frame up to 300 sf $ 517.69 $ 716.00 $ 198.31 138% Additional patio each 300 sf $ 221.87 $ 574.00 $ 352.13 259% Enclosed, wood frame up to 300 sf $ 517.69 $ 859.00 $ 341.31 166% Enclosed, metal frame up to 300 sf $ 517.69 $ 859.00 $ 341.31 166% Enclosed, other frame up to 300 sf $ 517.69 $ 859.00 $ 341.31 166% Additional enclosed patio each 300 sf $ 295.82 $ 716.00 $ 420.18 242% Photovoltaic System
Residential each $ 258.84 $ 236.00 $ (22.84) 91%
Multi-Family Res/Commercial, up to 8 kilowatts up to 8 kW $ 369.78 $ 572.00 $ 202.22 155% Multi-Family Res/Commercial, each additional 1 kilowatt each 1 kW $ 36.98 $ 11.00 $ (25.98) 30% Pile Foundation
Cast in Place Concrete (first 10 piles) up to 10 $ 665.60 $ 1,003.00 $ 337.40 151% Additional Piles (increments of 10) each 10 $ 443.73 $ 859.00 $ 415.27 194% Driven (steel, pre-stressed concrete) up to 10 $ 665.60 $ 1,003.00 $ 337.40 151% Additional Piles (increments of 10) each 10 $ 443.73 $ 859.00 $ 415.27 194% Product Review per hour $ 147.91 $ 143.00 $ (4.91) 97%
Plan Review
Standard Plan Review Hourly Rate per hour $ 147.91 $ 143.00 $ (4.91) 97% CALGreen Plan Review (minimum 2 hr charge in addition to Plan Check Fees) per hour $ 295.82 $ 143.00 $ (152.82) 48% Expedite Plan Review (1.5 times plan review) $ - $ - 0% Outside of normal business hours, (minimum 2 hr charge in addition to Plan Check Fees) per hour $ 295.82 $ 214.00 $ (81.82) 72% Remodel—Residential
Kitchen up to 300 sf $ 591.64 $ 645.00 $ 53.36 109%
Bath up to 300 sf $ 591.64 $ 645.00 $ 53.36 109%
Other Remodel up to 300 sf $ 443.73 $ 431.00 $ (12.73) 97% Additional remodel each 300 sf $ 221.87 $ 72.00 $ (149.87) 32% Other Remodel 1000 sf $ 1,405.15 $ 4,320.00 $ 2,914.85 307% Additional remodel each 300 sf $ 221.87 $ 284.00 $ 62.13 128% 548
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User Fee (Cost of Services) Study
FY 15-16 Budget
City of Cupertino, CA
Building Division
Matrix Consulting Group Page 4 of 5

UNIT COSTS
Work Item Unit
Total Actual
Cost
Average
Current Fee
Subsidy to
Public per
Unit
Cost
Recovery %
Other Remodel 2500 sf + $ 1,848.89 $ 5,739.00 $ 3,890.11 310% Additional remodel each 300 sf $ 221.87 $ 205.00 $ (16.87) 92% Re-roof
Residential (max $400 per building) each 100 sf $ 15.68 $ 17.00 $ 1.32 108% Multi-Family Dwelling (max $400 per building) each 100 sf $ 15.68 $ 17.00 $ 1.32 108% Commercial (first 5,000 sf) each $ 369.78 $ 394.00 $ 24.22 107% Commercial (each add'l 2,500 sf) each 2,500 sf $ 147.91 $ 179.00 $ 31.09 121% Retaining Wall (concrete or masonry)
Standard (up to 50 lf) up to 50 l.f. $ 665.60 $ 859.00 $ 193.40 129% Additional retaining wall each 50 l.f. $ 443.73 $ 716.00 $ 272.27 161% Special Design, 3-10' high (up to 50 lf) up to 50 l.f. $ 961.42 $ 1,003.00 $ 41.58 104% Additional retaining wall each 50 l.f. $ 591.64 $ 859.00 $ 267.36 145% Special Design, over 10' high (up to 50 lf) up to 50 l.f. $ 1,109.33 $ 1,074.00 $ (35.33) 97% Additional retaining wall each 50 l.f. $ 739.55 $ 930.00 $ 190.45 126% Gravity/Crib Wall, 0-10' high (up to 50 lf) up to 50 l.f. $ 961.42 $ 1,074.00 $ 112.58 112% Additional Gravity/Crib Wall each 50 l.f. $ 591.64 $ 930.00 $ 338.36 157% Gravity/Crib Wall, over 10' high (up to 50 lf) up to 50 l.f. $ 1,109.33 $ 1,074.00 $ (35.33) 97% Additional Gravity/Crib Wall each 50 l.f. $ 739.55 $ 930.00 $ 190.45 126% Revisions
Commercial New each $ 665.60 $ 859.00 $ 193.40 129%
Tenant Improvement each $ 665.60 $ 859.00 $ 193.40 129% SFDWL each $ 369.78 $ 859.00 $ 489.22 232%
Addition each $ 369.78 $ 716.00 $ 346.22 194%
Remodel each $ 295.82 $ 716.00 $ 420.18 242%
Sauna—steam each $ 517.69 $ 788.00 $ 270.31 152%
Siding
Stone and Brick Veneer (interior or exterior) up to 400 sf $ 369.78 $ 645.00 $ 275.22 174% All Other up to 400 sf $ 295.82 $ 431.00 $ 135.18 146%
Additional siding each 400 sf $ 73.96 $ 215.00 $ 141.04 291% Signs
Directional each $ 295.82 $ 286.00 $ (9.82) 97%
Each additional Directional Sign each $ 147.91 $ 143.00 $ (4.91) 97% Ground/Roof/Projecting Signs each $ 295.82 $ 359.00 $ 63.18 121% Master Plan Sign Check each $ 295.82 $ 359.00 $ 63.18 121% Rework of any existing Ground Sign each $ 295.82 $ 359.00 $ 63.18 121% Other Sign each $ 295.82 $ 359.00 $ 63.18 121%
Reinspection Fee each $ 73.96 $ 72.00 $ (1.96) 97%
Wall/Awning Sign, Non-Electric each $ 221.87 $ 286.00 $ 64.13 129% Wall, Electric each $ 295.82 $ 286.00 $ (9.82) 97%
Shed over 120 square feet each $ 665.60 $ 430.00 $ (235.60) 65% Skylight
50 sf or less (cumulative area) each $ 369.78 $ 431.00 $ 61.22 117% Greater than 50 sf or structural each $ 517.69 $ 788.00 $ 270.31 152% 549
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User Fee (Cost of Services) Study
FY 15-16 Budget
City of Cupertino, CA
Building Division
Matrix Consulting Group Page 5 of 5

UNIT COSTS
Work Item Unit
Total Actual
Cost
Average
Current Fee
Subsidy to
Public per
Unit
Cost
Recovery %
Solar Water Heating each $ 147.91 $ 109.00 $ (38.91) 74% Stairs—First Flight first flight $ 295.82 $ 359.00 $ 63.18 121% Each additional flight per flight $ 147.91 $ 215.00 $ 67.09 145% Storage Racks
0-8' high (up to 100 lf) first 100 lf $ 369.78 $ 359.00 $ (10.78) 97% each additional 100 lf each 100 lf $ 73.96 $ 72.00 $ (1.96) 97% over 8' high (up to 100 lf) first 100 lf $ 369.78 $ 394.00 $ 24.22 107% each additional 100 lf each 100 lf $ 73.96 $ 107.00 $ 33.04 145% Stucco Applications up to 400 sf $ 295.82 $ 503.00 $ 207.18 170% Additional Stucco Application each 400 sf $ 73.96 $ 36.00 $ (37.96) 49% Supplemental Inspection Fee—If a project requires significantly more inspections than average, the Building Official may charge additional inspection fees $ - $ - 0%
First 1/2 hour minimum first 30 min $ 73.96 $ 72.00 $ (1.96) 97% Each Additional hour per hour $ 147.91 $ 143.00 $ (4.91) 97% Overtime Plan Check Fee per hour $ 221.87 $ 214.00 $ (7.87) 96% Supplemental Plan Check Fee (after 2nd review)
First 1/2 hour minimum first 30 min $ 73.96 $ 72.00 $ (1.96) 97% Each Additional hour per hour $ 147.91 $ 143.00 $ (4.91) 97% Swimming Pool/Spa
Vinyl-lined (up to 800 sf) each $ 665.60 $ 1,003.00 $ 337.40 151% Fiberglass each $ 665.60 $ 716.00 $ 50.40 108%
Gunite (up to 800 sf) each $ 961.42 $ 1,574.00 $ 612.58 164% Additional pool (over 800 sf) each 100 sf $ 221.87 $ 215.00 $ (6.87) 97% Commercial pool (up to 800 sf) each $ 1,627.02 $ 2,004.00 $ 376.98 123% Commercial pool (over 800 sf) each $ 443.73 $ 251.00 $ (192.73) 57% Spa or Hot Tub (Pre-fabricated) each $ 295.82 $ 359.00 $ 63.18 121% Temporary Occupancy Permit - flat rate 2 hours $ 295.82 $ 286.00 $ (9.82) 97% Temporary Structures each $ 443.73 $ 430.00 $ (13.73) 97% Tenant Improvement Preparation each $ 295.82 $ 417.00 $ 121.18 141% Window or Sliding Glass Door
Replacement (first 8 windows) first 8 $ 221.87 $ 431.00 $ 209.13 194% Replacement (each add'l 8 windows) each 8 $ 73.96 $ 143.00 $ 69.04 193% New Window (non structural) each $ 184.89 $ 503.00 $ 318.11 272% New window (structural shear wall/masonry) each $ 258.84 $ 859.00 $ 600.16 332% Bay Window (structural) each $ 258.84 $ 859.00 $ 600.16 332% 550
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COMPARATIVE SURVEY
551
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CITY OF CUPERTINO, CALIFORNIA

BUILDING COMPARATIVE FEE SURVEY
Matrix Consulting Group Page 1
Single Family Home - New
Occupancy Type: R3
Square Footage: 3,100 sqft.

Valuation: $371,165
BP Fee PC Fee Total
Cupertino - Current - Square Footage $ 3,060 $ 3,088 $ 6,147 Cupertino @ 100% Cost Recovery $ 4,171 $ 3,685 $ 7,856 78% Santa Clara - Valuation $ 2,530 $ 1,897 $ 4,427
Mountain View - Valuation $ 3,899 $ 2,535 $ 6,434
Milpitas - Square Footage $ 5,461 $ 3,580 $ 9,041
Sunnyvale - Valuation $ 3,622 $ 2,536 $ 6,158
Palo Alto - Valuation $ 4,348 $ 3,478 $ 7,826
Average $ 3,972 $ 2,805 $ 6,777
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
Cupertino -
Current - Square
Footage
Cupertino @
100% Cost
Recovery
Santa Clara -
Valuation
Mountain View -
Valuation
Milpitas - Square
Footage
Sunnyvale -
Valuation
Palo Alto -
Valuation
Permit Fees
Single Family Home - New
Permit and Plan Check Fees
Plan Check
Permit
Average
552
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CITY OF CUPERTINO, CALIFORNIA

BUILDING COMPARATIVE FEE SURVEY
Matrix Consulting Group Page 2
Retail Shell Building
Occupancy Type: M
Square Footage: 20,000 sqft.

Valuation: $1,841,000
BP Fee PC Fee Total
Cupertino - Current - Square Footage $ 9,908 $ 5,484 $ 15,392 Cupertino @ 100% Cost Recovery $ 6,286 $ 7,980 $ 14,266 108% Santa Clara - Valuation $ 8,691 $ 6,518 $ 15,209
Mountain View - Valuation $ 13,445 $ 8,739 $ 22,185
Milpitas - Square Footage $ 5,195 $ 13,199 $ 18,394
Sunnyvale - Valuation $ 11,770 $ 8,239 $ 20,009
Palo Alto - Valuation $ 15,154 $ 12,123 $ 27,277
Average $ 10,851 $ 9,764 $ 20,615
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Cupertino -
Current -
Square
Footage
Cupertino @
100% Cost
Recovery
Santa Clara -
Valuation
Mountain View
- Valuation
Milpitas -
Square
Footage
Sunnyvale -
Valuation
Palo Alto -
Valuation
Permit Fee
Retail Shell Building
Permit and Plan Check Fees
Plan
Check
Permit
Average
553
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CITY OF CUPERTINO, CALIFORNIA

BUILDING COMPARATIVE FEE SURVEY
Matrix Consulting Group Page 3
Office - Tenant Improvement
Occupancy Type: B
Square Footage: 3,000 sqft.

Valuation: $388,476
BP Fee PC Fee Total
Cupertino - Current - Square Footage $ 2,613 $ 2,377 $ 4,990 Cupertino @ 100% Cost Recovery $ 3,844 $ 3,254 $ 7,098 70% Santa Clara - Valuation $ 2,627 $ 1,970 $ 4,596
Mountain View - Valuation $ 4,050 $ 2,633 $ 6,683
Milpitas - Square Footage $ 2,037 $ 1,611 $ 3,648
Sunnyvale - Valuation $ 3,759 $ 2,632 $ 6,391
Palo Alto - Valuation $ 4,515 $ 3,612 $ 8,128
Average $ 3,398 $ 2,491 $ 5,889
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Cupertino -
Current -
Square
Footage
Cupertino @
100% Cost
Recovery
Santa Clara -
Valuation
Mountain View
- Valuation
Milpitas -
Square
Footage
Sunnyvale -
Valuation
Palo Alto -
Valuation
Permit Fees
Office - Tenant Improvement
Permit and Plan Check Fees
Plan Check
Permit
Average
554
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CITY OF CUPERTINO, CALIFORNIA

BUILDING COMPARATIVE FEE SURVEY
Matrix Consulting Group Page 4
Restaurant - New
Occupancy Type: A-2
Square Footage: 10,000 sqft.

Valuation: $2,713,600
BP Fee PC Fee Total
Cupertino - Current - Square Footage $ 11,109 $ 7,192 $ 18,301 Cupertino @ 100% Cost Recovery $ 5,012 $ 7,114 $ 12,125 151% Santa Clara - Valuation $ 11,876 $ 8,907 $ 20,783
Mountain View - Valuation $ 18,375 $ 11,944 $ 30,319
Milpitas - Square Footage $ 6,878 $ 7,779 $ 14,657
Sunnyvale - Valuation $ 15,670 $ 10,969 $ 26,640
Palo Alto - Valuation $ 20,817 $ 16,653 $ 37,470
Average $ 14,723 $ 11,251 $ 25,974
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Cupertino -
Current -
Square
Footage
Cupertino @
100% Cost
Recovery
Santa Clara -
Valuation
Mountain View
- Valuation
Milpitas -
Square
Footage
Sunnyvale -
Valuation
Palo Alto -
Valuation
Permit Fees
Restaurant - New
Permit and Plan Check Fees
Plan Check
Permit
Average
555
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CITY OF CUPERTINO, CALIFORNIA

BUILDING COMPARATIVE FEE SURVEY
Matrix Consulting Group Page 5
Warehouse - New
Occupancy Type: S-1
Square Footage: 20,000 sqft.

Valuation: $1,234,600
BP Fee PC Fee Total
Cupertino - Current - Square Footage $ 11,898 $ 8,262 $ 20,160 Cupertino @ 100% Cost Recovery $ 4,345 $ 5,962 $ 10,307 196% Santa Clara - Valuation $ 6,477 $ 4,858 $ 11,335
Mountain View - Valuation $ 10,019 $ 6,512 $ 16,531
Milpitas - Square Footage $ 5,195 $ 13,199 $ 18,394
Sunnyvale - Valuation $ 9,059 $ 6,341 $ 15,401
Palo Alto - Valuation $ 11,218 $ 8,974 $ 20,193
Average $ 8,394 $ 7,977 $ 16,371
$-
$5,000
$10,000
$15,000
$20,000
$25,000
Cupertino -
Current -
Square
Footage
Cupertino @
100% Cost
Recovery
Santa Clara -
Valuation
Mountain View
- Valuation
Milpitas -
Square
Footage
Sunnyvale -
Valuation
Palo Alto -
Valuation
Permit Fees
Warehouse - New
Permit and Plan Check Fees
Plan Check
Permit
Average
556
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Planning Comparative Survey
Matrix Consulting Group Page 1 of 5
Current Full Cost
Up to one Acre
$7,300
One Acre+
$12,200
Tentative: Tentative:

Up to one Acre
$4,300
One Acre+
$5,200
Vesting:

Up to one Acre
$6,000
One Acre+
$6,900
Use Permit / Development Permit - Major $15,974 $21,343 $7,800 Use Permit / Development Permit - Minor $7,461 $12,809 $2,500 Amendment to Use Permit / Development Permit - Major $7,988 $10,746 N / A Amendment to Use Permit / Development Permit - Minor $3,730 $5,884 $961 Architectural and Site Approval - Major $7,461 $13,189 $5,800 $3,712 deposit Architectural and Site Approval - Minor $3,609 $8,862 $5,800 $2,896 Architectural and Site Approval - Minor Duplex / Residential $3,609 $5,768 $610 $1,448 Environmental Impact Report (Plus State & County Filing Fees) $27,948 $27,948 $16,000 Cost + 15% N / A N / A Negative Declaration - Major (Plus State & County Filing Fees) $4,299 $4,299 $12,500 Negative Declaration - Minor (Plus State & County Filing Fees) $2,149 $2,149 $9,000 Categorical Exemption (Plus County Filing Fee) $250 $230 N / A N / A N / A $324 Fence Exception $716 $2,891 N / A $526 N / A N / A $ 1,193 Single Family Detached Single Family: Residential
$1,300 $375 $2,436
All Others Non Residential: Commercial
$4,300 $3,000 deposit $5,138
Conditional Use Permit - Administrative $3,730 $4,676 N / A $3,858 $3,000 deposit N / A N / A Tree Removal Permit $0 $0
First Tree $180 $1,362 $279
Each Additional Tree $92 $160
Heritage Tree Designation $107 $2,630 $526 $161
Temporary Use Permit $1,439 $2,824 N / A $368 N / A $161 $190 Temporary Sign Permit $211 $319 $ 50 N / A N / A $0 $61 Individual:
$300
Master:
$453
Planning
Commission
$7,834
City Council
$8,239
Zoning Verification Letter $190 $338 $300 N / A $40 N / A N / A Public Convenience & Necessity Letter (Alcohol Beverage License) $190 $169 N / A $1,333 N / A N / A N / A Single Family: 500 Ft:
$330 $309
All Other: 1,000 Ft:
$5,600 $972
2,000 Ft:
$1,989
Renoticing:
$143
$161 N / A
Noticing $0 $368 N / A N / A N / A
Appeals $182 $360 50% of original fee $100
N / A
$5,000 deposit

N / A N / A N / A
N / A
N / A

N / A N / A N / A
$440
$788
$770 $3,309
$5,905 Deposit
$1,077
$3,799
Category Santa Clara Mountain View Milpitas Sunnyvale Palo Alto N / A
$1,947
$2,889
Cupertino
N / A
Sign Program $721 $2,582
Tentative Map (Five or More Parcels)
Parcel Map (0-4 Parcels)
Variance $2,813 $5,167
$7,461 $12,732
$15,974 $21,179
$579
$2,457
$2,973 $20,000 deposit
$10,000 deposit

N / A N / A
N / A
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$0
$5,000
$10,000
$15,000
$20,000
$25,000
Cupertino
- Current
Cupertino
- Full Cost
Santa
Clara -
Average
Mountain
View -
Average
Milpitas -
Average
Palo Alto -
Average
Tentative Map (Five or More Parcels)
Average
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Cupertino
- Current
Cupertino
- Full Cost
Santa
Clara -
Average
Mountain
View -
Average
Milpitas -
Average
Palo Alto -
Average
Parcel Map (0-4 Parcels)
Average
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Cupertino -
Current
Cupertino - Full
Cost
Santa Clara -
Average
Palo Alto -
Average
Use Permit
Average
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Cupertino -
Current
Cupertino - Full
Cost
Santa Clara -
Average
Palo Alto -
Average
Architectural and Site Approval
Average
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$0
$5,000
$10,000
$15,000
$20,000
$25,000
Environmental Review
Average
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Cupertino -
Current
Cupertino - Full
Cost
Mountain View -
Average
Palo Alto -
Average
Fence Exception
Average
$0 $1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Variance
Average
$0
$1,000
$2,000
$3,000
$4,000
$5,000
Cupertino -
Current
Cupertino - Full
Cost
Mountain View -
Average
Milpitas -
Average
Conditional Use Permit - Administrative
Average
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$0
$500
$1,000
$1,500
$2,000
$2,500
Cupertino -
Current
Cupertino - Full
Cost
Mountain View -
Average
Sunnyvale -
Average
Tree Permits
Average
$0
$50
$100
$150
$200
$250
$300
$350
Cupertino -
Current
Cupertino -
Full Cost
Santa Clara -
Average
Sunnyvale -
Average
Palo Alto -
Average
Temporary Sign Permit
Average
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Cupertino -
Current
Cupertino -
Full Cost
Mountain
View -
Average
Sunnyvale -
Average
Palo Alto -
Average
Temporary Use Permit
Average
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Cupertino -
Current
Cupertino -
Full Cost
Santa Clara -
Average
Mountain
View -
Average
Sunnyvale -
Average
Sign Program
Average
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$0
$50
$100
$150
$200
$250
$300
$350
$400
Cupertino -
Current
Cupertino -
Full Cost
Santa Clara -
Average
Milpitas -
Average
Average
Zoning Verification Letter
Average
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Cupertino -
Current
Cupertino - Full
Cost
Santa Clara -
Average
Sunnyvale -
Average
Noticing
Average
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Public Works Comparative Survey
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Current Fee Full Cost
Block Party $ - $ 533 $ 25 $ -
Certificates of Compliance $ 1,540 $ 2,461 $ 1,840 $ 575 Actual Cost $ 700 Certificates of Correction $ 169 $ 703 $ 550 N / A $ 3,122 N / A $ 1,157
per lot
$ 49
$ 3,850
per lot
$ 83
5-10 lots
$ 4,949
11-50 lots
$ 5,774
50+ lots
$ 8,660
Plus Each lot (Tract Map
Only) $ - $ - $ 114 N / A $ 289 $ 60
Summary $ 603 $ 1,882 $ 1,930 $ 1,596
Full $ 603 $ 2,997 $ 3,012
Minor Utility Permit
$ 263 $ 272 $ 385 Construction less
than 50 feet Processing Fee
Debris Box /
Temporary Storage
Container
Minor $ 263 $ 394 $ 220 $301 $ 242 $ 118
Major $ 525 $ 678 $ 385 50+ ft in length All Others Non-Residential $301 + $181 / 100 ft $320 min or 8% of
cost $ 2,034
Field Marking -
Sanitary Sewer or
Storm Drain
Encroachment
Residential
0-50 ft $ 1,112
$ 161 Temporary
50+ ft $ 874
$161 + $1.32 / foot
Review of building permit only $ 655 $ 741 $ 455
$0-$250,000 $0 to $10,000 $0-$50,000
14% of Cost $4,030 7.5% of Construction
Cost
$250,000-$550,000 $10,001-$50,000 $50,001-$500,000
$4,030 + 35% of cost $3,750 + 4.5% of
Construction Cost
$50,001-$1,000,0000 $500,001+
$550,001+ $18,030 + 4% of cost $24,000 + 3.5% of
Construction Cost
$55,000 + 7% of Cost $1,000,001+
$56,030 + 1% of cost
Lot Line Adjustment $ 3,012 $ 2,477 $ 1,856 $ 6,948 $ 2,350 FEE CATEGORY Cupertino Campbell Sunnyvale Santa Clara Mountain View Parcel Map / Tract Map (Map Checking Fees):

Parcel Map (1-4 lots) $ 4,254 $ 4,973 $ 3,093 $ 17,855 $ 2,908 Vacation of Street of Right-of-Way

N / A N / A
Tract Map (>4 lots) $ 8,831 $ 8,165 $ 4,681 $ 19,972 $ 4,907 Commercial $4,498 or 6% of
cost $ 6,266
N / A
Encroachment Permits
Other Categories N / A N / A
Plan Check & Inspection - Review of Public / Private Improvement Plans:

Residential $2,788 or 5% of
cost $ 3,349
$35,000 + 8% of Cost N / A
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$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Cupertino -
Current Fee
Cupertino -
Full Cost
Campbell Sunnyvale Mountain
View
Fee Amount
Certificates of Compliance
Average
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Cupertino -
Current Fee
Cupertino - Full
Cost
Campbell Santa Clara
Certificate of Correction
Average
$-
$5,000
$10,000
$15,000
$20,000
Cupertino
- Current
Fee
Cupertino
- Full Cost
Campbell Sunnyvale Santa
Clara
Mountain
View
Parcel Map (0-4 lots)
Average
$-
$5,000
$10,000
$15,000
$20,000
$25,000
Cupertino
- Current
Fee
Cupertino
- Full Cost
Campbell Sunnyvale Santa
Clara
Mountain
View
Tract Map (4+ lots)
Average
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$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Cupertino
- Current
Fee
Cupertino
- Full Cost
Campbell Sunnyvale Santa
Clara
Mountain
View
Lot Line Adjustment
Average
$-
$500
$1,000
$1,500
$2,000
$2,500
Cuper.no -
Current Fee
Cuper.no - Full
Cost
Sunnyvale Mountain View
Vacation
Average
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ATTACHMENT L
RESOLUTION NO: 22‐049

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO

AMENDING PREVIOUS FEE SCHEDULES
WHEREAS, the State of California requires fees charged for service rendered not to exceed the cost of delivering said services; and
WHEREAS, a public hearing has been held to review user fees; and WHEREAS, In 2016 the City conducted a Cost of Service (User Fee) Study and conducts annual updates pursuant to economic factors discussed in the staff report for this item to ensure that the fees charged do not exceed the cost of delivering the services.

NOW, THEREFORE, BE IT RESOLVED that:

1. User fees are amended per attached Schedules A, B, C, D, and E to this Resolution, effective July 18, 2022.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 17th day of May, 2022 by the following vote:

Vote Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Darcy Paul, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________

Kirsten Squarcia, City Clerk
________________________
Date
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CITY OF CUPERTINO
Agenda Item
22-10900 Agenda Date: 5/17/2022
Agenda #: 19.

Subject: Consider conducting the first reading of an Ordinance related to regulation of single-use plastic foodware and single-use carryout bags (continued from May 3, 2022). Continue to a date certain at a special meeting on May 19, 2022
Conduct the first reading of Ordinance No. 22-2239: “An Ordinance of the City Council of the City of Cupertino amending City Code to change the name of section 9.15, adopt new sections 9.15.090 and

9.15.125, and amend sections 9.15.100, 9.15.110, 9.15.120, 9.15.130, 9.17.130, and 9.17.140 to regulate the use of single-use food service ware by food providers, regulate sale of single-use food service ware and expanded polystyrene foam coolers, and regulate single-use carryout bags” (Attachment A), which includes a finding that adoption of the Ordinance is exempt from the California Environmental Quality Act (CEQA.). /// Recommended Postponement: Postponement to May 19, 2022 meeting
CITY OF CUPERTINO Page 1 of 1 Printed on 5/12/2022
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CITY COUNCIL STAFF REPORT
Meeting: May 17, 2022
Subject
Consider conducting the first reading of an Ordinance related to regulation of single-use plastic foodware and single-use carryout bags.

Recommended Action
Conduct the first reading of Ordinance No. 22-2239 “An Ordinance of the City Council of the City of Cupertino amending City Code to change the name of section 9.15, adopt new sections 9.15.090 and 9.15.125, and amend sections 9.15.100, 9.15.110, 9.15.120,

9.15.130, 9.17.130, and 9.17.140 to regulate the use of single-use food service ware by food providers, regulate sale of single-use food service ware and expanded polystyrene foam coolers, and regulate single-use carryout bags” (Attachment A,) which includes a finding that adoption of the Ordinance is exempt from the California Environmental Quality Act (CEQA.)
Background
Due to concern for the negative environmental impact of litter, chemical migration into food, waste reduction, and conservation of natural resources, the City of Cupertino seeks to further reduce the use of single-use plastics through regulation of food service ware. The City’s Zero Waste Policy, adopted in 2017, acknowledges that reusable foodware is generally preferred to single-use items and particularly seeks to reduce the production of unnecessary plastic food service ware. City Council made single-use plastics a City Work Program item in 2020 and Cupertino’s Sustainability Commission recommended restrictions on single-use plastic foodware at their meeting on January 20.

While there are many single-use plastic items, both recyclable and not recyclable used in everyday life, the scope of this Ordinance is limited to single-use plastic food service ware used by food and beverage providers and non-durable expanded polystyrene foam coolers. City Municipal Code currently bans the use of expanded polystyrene (EPS) foam foodware and bans single-use plastic carryout bags (with an exemption for restaurants bagging takeout food orders).

City Council conducted a Study Session on this topic on March 1 and directed staff to:
 Develop Ordinance language and return in April for a first reading 567
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 Include temporary waivers to reduce impacts to businesses  Reach out to the business community, including larger corporate interests  Gather information on consultants with restaurant operation and food service experience able to provide technical and financial assistance to food businesses during transition
 Explore collaboration with local schools, which would not be covered under this proposed Ordinance
 Research reusable solutions for boba tea, which is very popular locally and is often very reliant on single-use plastic for serving and presentation  Explore a pilot of reusable food service ware for takeout food and beverages  Explore coordinating similar efforts with surrounding cities  Explore amending Cupertino’s single-use carryout bag Ordinance to require compostable or recyclable produce bags
 Compare the greenhouse gas (GHG) impact of plastic versus compostable foodware
 Clarify the concerns about bio-plastics and allow for future changes that may make those materials acceptable to the compost processors
Discussion
Foodware Ordinance Amendments
Environmental Programs Division staff prepared proposed amendments to Municipal Code Chapter 9.15 that would enact a shift away from single-use plastic foodware and toward compostable and reusable foodware.

Cupertino currently prohibits food service providers from using EPS foam foodware.

The amended language (Attachments A and B) proposes to expand on that by requiring foodware accessories to be provided only when requested, banning the use of single-use plastic foodware, banning sale of bio-plastic foodware, and requiring reusables for dining in. The Ordinance enacts these prohibitions in two phases. The elements of those phases are summarized below and presented in Attachment C, which serves as an index to the draft Ordinance itself.

The first phase of the Ordinance mirrors the requirements of State law Assembly Bill (AB) 1276 and requires that food service ware accessories such as utensils, chopsticks, condiment cups and packets, straws, stirrers, splash sticks, and cocktail sticks be provided only upon request by customers. These requirements become effective on June

1. The second phase of the proposed Ordinance includes elements that are proposed to go into effect one year later, on June 1, 2023:

1. Prohibit the use of certain types of food service ware by food providers:
 Continue to prohibit use of expanded polystyrene foam food service ware 568
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 Prohibit use of single-use plastic items (even if accepted as recyclable.)  Prohibit use of compostable food service ware that contains PFAS (a group of chemicals used to make a coating for products that resist heat, oil, strains, grease, and water) (as required by AB 1200.)
 Prohibit use of bio-plastics (compostable plastics.)

2. Require reusable food service ware for dining on site:
 Reusable food service ware must be provided for customers dining on site at the food provider’s location. This would require sufficient dishwashing capacity or a contract with a dishwashing service.

3. Prohibit the sale of certain non-compliant foodware:
 Ban local sale of expanded polystyrene foam foodware.  Ban local sale of bio-plastic foodware.
 Continue to allow local sale of traditional plastic foodware and accessories1.

4. Exempted items:
 Paper, wood, bamboo, and other fiber-based compostable foodware items accepted in the City’s compost program.
 Containers made entirely from aluminum and aluminum foil.  Plastic straws for those with medical need.
 Food prepared and packaged outside of the City.
 Compliant single-use food service used for taking home leftovers from dinein situations.  Temporary exemptions allowed if additional time needed to comply.  Temporary exemptions allowed for significant economic hardship.  Temporary exemptions allowed for unique packaging hardship.

Why Compostable “Bio-Plastics” Are Not the Answer
Foodware containers and utensils made from polylactic acid (PLA,) or other “bioplastics” made from corn or potato starch are not allowed in Cupertino’s organics recycling program, even if labeled as certified compostable. The one exception is that Biodegradable Products Institute (BPI) certified compostable plastic bags are still allowed for collecting food scraps. Problems with bio-plastics:
 They do not break down fast enough. A 60-day timeframe is typical at California composting facilities, which is different from the 180 days allowed by American Society for Testing and Materials (ASTM) standards.
 Considered a contaminant which must be screened out and sent to landfill.  Bio-plastics in landfill create methane as they degrade.  People confuse bio-plastics with recyclable traditional plastic.  Bio-plastic foodware is usually more expensive than other types.  Currently there is no place for bio-plastics in Cupertino’s waste streams.

1 Plastic food service ware and accessories includes plastic cups, plates, bowls, utensils, stir sticks, etcetera.
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There are currently no solutions to the various issues above, however, if technological advances occur in production, processing, or sorting, and these advances changes what is allowed in Cupertino’s local composting program, the Ordinance could be amended.

Single-Use Carryout Bags Ordinance Amendments
City Municipal Code (CMC) currently bans the use of single-use plastic carryout bags at all retail locations with an exemption for restaurants bagging takeout food orders. It requires a fee of ten cents for each paper bag provided at point of checkout and allows reusable bags to be provided with no fee.
 At the recommendation of the Sustainability Commission, a proposed amendment would remove the exemption allowing thin single-use carryout plastic bags for restaurants. If adopted, staff recommends an effective date of June 1, 2023, to align with the new proposed single-use plastic foodware requirements.
 Another amendment to the bag Ordinance would require a ten-cent charge for reusable bags, which would bring Cupertino Code into alignment with State law.

As an observational survey showed grocery stores are already charging for both paper and reusable carryout bags, this is more of a Code cleanup issue, but other retailers will be informed for education and compliance.  In neither the current form of the CMC nor the proposed amended form would restaurants be required to charge a fee for carryout bags containing takeout food orders.
 A further amendment was suggested by City Council which would require compostable bio-plastic or paper produce bags at local supermarkets and farmers markets. This is not currently recommended due to uncertainty from Cupertino’s compost processors about the role of bio-plastic bags and because there is a State bill contemplating a similar requirement. Staff advises considering this issue when more information is available.

Environmental Comparison Between Types of Foodware
While single-use foodware is highly visible and often non-essential, it is not a significant contributor of GHG in Cupertino, when compared to transportation or energy sources.

While there are lifecycle analyses of the various types of single-use foodware, they do not take into consideration the impacts of items that are littered and end up in the oceans; the concern is over chemicals leaching into food, or that plastic single-use foodware is unlikely in actual practice to be clean enough to be recycled. They also do not take into consideration what has been called the “carrier benefit” of compostable foodware, which is something that does not need to be emptied or wiped clean of food scraps before being placed in a green bin and thus may carry more food scraps into the compost stream. Setting aside those gaps, most of the GHG production and water use are from resource extraction and manufacturing – fossil fuels for plastics, trees for paper, crops for bio-plastics and mining aluminum. Based purely on climate change impact, 570
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there is not a clear best choice among single-use items.2 Meanwhile, reusable items made from ceramic, steel, or glass consistently result in a lower carbon footprint after they have been reused and washed a number of times. Washing processes that are energy and water-efficient can reduce the break-even point considerably. 3 Outreach to Schools and Large Corporations
Staff interviewed several large institutional food service providers in Cupertino during the summer of 2021 about their use of foodware. Common concerns included being able to quickly transition to reusables for dining in given needed structural changes and labor shortages. Conversations with representatives from Cupertino Union School District (CUSD) revealed concerns over product availability due to supply chain issues and cited a lack of dishwashing capacity and funding shortfalls. While CUSD would not be subject to the City’s Ordinance, they are open to collaborating for change and have already made choices to unbundle foodware available to students, have eliminated straws, and already use paper-based trays to hold food. Fremont Union High School District (FUHSD) has members of the Silicon Valley Youth Climate Action organization actively working on issues of climate change with leaders in the District and are requesting to form an advisory group to include representatives from the cities in FUHSD, climate groups, and students to act on a variety of topics, including waste reduction. Staff has also reached out to De Anza College to discuss this topic.

Assistance for Businesses During Transition
If the Ordinance is adopted, staff recommends contracting for technical and financial assistance to help Cupertino’s food service businesses understand and adjust to the requirements, including sourcing foodware and connecting businesses with mini grants.

A consultant who is deeply knowledgeable about food service business requirements, regulations, supplies, and challenges who also has experience with making these types of transitions will best be able to provide such assistance. A request for proposal is under development.

The Challenge of Bubble Tea
There are at least 14 locations in Cupertino that serve bubble “boba” tea as a primary item and others that serve bubble tea on their menu. Seeing the tea and tapioca pearls through the cup and shaking the drink to mix it are part of the expected experience, and out of the 14 boba-focused tea places, 13 used clear single-use plastic cups and a machine to heat-seal film plastic across the top to cover the drinks. From a limited online search, the heat-sealing machinery can cost around $2000, and for franchised shops the presentation and packaging could be required. Understanding these concerns, City Council is interested in reusable alternatives. Staff talked to one reusable takeout

2 “Food Service Ware LCA Harmonization.” State of Oregon Department of Environmental Quality accessed at https://www.oregon.gov/deq/FilterDocs/FoodLCAreport.pdf 3 “Reusable Food Service Ware.” State of Oregon Department of Environmental Quality and Franklin Associates, a Division of Eastern Research Group accessed at https://www.oregon.gov/deq/FilterDocs/reusable-fsw.pdf
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foodware solutions company operating out of Mountain View that is specifically piloting a clear cup alternative that would work for boba. Staff also purchased specialized mason jar lids, reusable straws, and travel cups as a demonstration and giveaway items for events such as Earth Day. A readily available solution does not currently exist to replace the experience of the heat-sealed transparent to-go cups. In recognition of this, the proposed Ordinance includes a “unique packaging exemption” that could be employed while reusable and fiber-based compliant options are encouraged.

Piloting Reusables for Takeout
Reusables for takeout food and drinks is a business model that is already gaining some traction in the Bay Area and elsewhere around the country and the world. A common method is to charge a deposit for a reusable to-go container which is refunded once the container is returned to a drop-off site, usually via a smart phone app. The returned containers are cleaned, sanitized, and returned to the food providers. In other models the containers are returned to participating businesses and washed and sanitized by the businesses themselves. City Council and Sustainability Commission were both interested to learn more about such possibilities, as were more than 60% of businesses and customers when asked in surveys. Staff has reached out to two providers for more information. Meanwhile, as a timely indicator that this is a topic of interest more widely, Starbucks announced on March 15, that it is planning to provide easy access to personal and other reusable to-go cups in café, drive-thru, and mobile orders by 2025. This plan includes making use of a double-window for drive-thru orders to enable customers to bring their own cups and a reusable and returnable borrowing cup model like what has already been described. Staff will continue to reach out to companies that provide this service and make a future recommendation to City Council for consideration of a possible local pilot.

Coordinating with other Cities
City Council was interested in the pace and interest of nearby cities to adopt similar restrictions on single-use plastics. While it would be ideal to move together as a region similar to what happened with plastic bags and expanded polystyrene, a model Ordinance effort at the County level was derailed by COVID-19 and a few cities have advanced on their own in the meantime. Pausing this effort in Cupertino to attempt to coordinate efforts more broadly across the County would delay implementation beyond Fiscal Year (FY) 22-23. Acting now will place Cupertino as a leader, paving the way for other jurisdictions considering similar Ordinances. Figure one below shows the current and planned regulations of neighboring jurisdictions.
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Figure 1: Comparison of Foodware Ordinances in Neighboring Jurisdictions Impact on Food Providers
Economically, the impact of the Ordinance could be mixed. With the implementation of the first phase per AB 1276 to offer utensils and accessories only on demand, providers could see cost savings from not giving out unwanted items. When the additional foodware requirements go into effect, providers using single-use plastic or bio-plastic food ware will need to use compliant PFAS-free fiber-based compostable or aluminum to-go foodware. The cost of transitioning to use compliant products could vary widely and is not universally more expensive. Food service providers surveyed in summer 2021 were using a combination of products. Transitioning to reusables for dine-in will require 573
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some businesses to purchase washable items and either make use of available dishwashing capacity or increase that capacity. Understanding that this may not be financially or practically possible in some cases, temporary waivers for additional time needed and financial hardship are included. Figure 2 below shows the range of food provider categories in Cupertino and anticipated impact.

Figure 2: Summary of Common Food Provider Types in Cupertino and Potential Impacts (based on business license data)
Type of Food Provider Number of
Businesses
% of
Total Expected Impacts
Dine-in
(Full-service restaurants) 73 49%
Moderate:
 Over half of full-service
restaurants that offer dinein provide reusables, but
some provide only singleuse plastic or a combination
of both
Fast-food/casual
(Includes locations that also
offer dine-in with limited
seating, but operates primarily
through takeout orders)
34 23%
High:
 Majority of fast-food/casual
locations offer only singleuse items or a combination
of products such as singleuse plastics and paper/fiberbased items Café/bakery/dessert 22 15%
Moderate:
 Majority offer only singleuse disposables
Boba tea 13 9%
High:
 High-usage of single-use
plastic cups and straws
Grocery/Supermarkets 6 4%
Low:
 Single-use items not
primarily given out
Catering Trucks 2 1%
Moderate:
 Use only disposables
California Environmental Quality Act
This Ordinance is not a project under the requirements of the CEQA, 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. 574
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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 to regulate the use of singleuse foodware by food providers and local sale of prohibited foodware and other expanded polystyrene products would have no or only a de minimis effect on the environment because reducing disposable plastic foodware items such as straws, utensils, and stirrer sticks and having compostable alternatives offered only upon request and other provisions of the Ordinance would not have the potential for causing a significant effect on the environment. In addition, if the proposed Ordinance were a project under CEQA, the project would be exempt from CEQA under CEQA Guidelines section 15307, which exempts from CEQA actions taken by regulatory agencies for the protection of the environment. The foregoing determination is made by the City Council in its independent judgment.

Next Steps
If adopted, the Ordinance will be brought before Council for a second reading on June 7.

Sustainability Impact
The proposed Ordinance is consistent with two actions in the Cupertino Climate Action Plan as well as California State law. The proposed Ordinance encourages a push towards more reusable foodware which is consistent with Climate Action Plan Measure C-SW-1: Zero Waste Goal. The proposed Ordinance promotes the collection of organics from the local waste stream, which will reduce GHG emissions from the landfill consistent with Climate Action Plan Measure C-SW-2: Food Scrap and Compostable Paper Diversion. Enabling organic items to reach the compost stream supports the diversion requirements of California Senate Bill (SB)1383, the State’s short-lived climate pollutant reduction regulations.

Fiscal Impact
If the Ordinance is adopted, staff recommends contracting for technical and financial assistance to help Cupertino’s food service businesses understand and adjust to the requirements. The cost to hire technical assistance as described is expected to be approximately $100,000 to cover support both before and after the implementation of the most significant changes, including offering a defined number of small grants to help cover the costs of switching to reusables or purchasing compliant foodware. Of the money budgeted to the Single-Use Plastics Ordinance and Mayor’s Cup Challenge City Work Program Item under 520-81-802 750-084, page 469 of the FY21-22 Adopted Budget, it is anticipated that approximately $60,000 will be available that could be allocated for a technical assistance contract. The balance of $40,000 would be drawn from the Resource Recovery Enterprise Fund and has been requested as part of the FY 22-23 proposed budget. Ongoing compliance monitoring and support can be performed by existing staff conducting inspections and outreach for stormwater pollution prevention program and SB 1383.
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_____________________________________
Prepared by: Ursula Syrova, Environmental Programs Manager Reviewed by: Matt Morley, Director of Public Works
Approved by: Dianne Thompson, Assistant City Manager
Approved for Submission by: Jim Throop, City Manager
Attachments:

A – Single-Use Plastics and Bags Draft Ordinance – Blackline Version B – Single-Use Plastics and Bags Draft Ordinance – Clean Version C – Single-Use Plastics Ordinance Elements and Phasing Summary D – Single-Use Foodware Cost Comparisons
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Attachment A
1 ORDINANCE NO. __________________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING CITY CODE TO CHANGE THE NAME OF CHAPTER 9.15, ADOPT NEW SECTIONS 9.15.090 AND 9.15.125, AND AMEND SECTIONS 9.15.100, 9.15.110,

9.15.120, 9.15.130, 9.17.130 AND 9.17.140 TO REGULATE THE USE OF SINGLE‐USE

FOOD SERVICE WARE BY FOOD PROVIDERS AND REGULATE THE SALE OF SINGLE‐USE FOOD SERVICE WARE AND EXPANDED POLYSTYRENE FOAM COOLERS, AND REGULATE SINGLE‐USE CARRYOUT BAGS

1. The City Council of the City of Cupertino finds that:

WHEREAS, on February 5, 2014, the City of Cupertino adopted an ordinance to prohibit food vendors from providing prepared food using food packaging containing polystyrene foam, currently codified as Chapter 9.15 of the City Code; and WHEREAS, this ordinance continues to prohibit the sale and use of polystyrene foam food service ware and also further regulates single‐use food service ware and food service ware accessories in Cupertino; and
WHEREAS, the State adopted AB 619 in July 2019, which allows consumers to supply their own reusable containers for filling or refilling and requires that food establishments have an established procedure for safely accepting reusable containers; and
WHEREAS, the State recently adopted Assembly Bill 1200, which prohibits the sale or distribution of food packaging made primarily from paper, paperboard, or other natural fiber that contains per‐ and polyfluoroalkyl substances (PFAS) in California beginning January 1, 2023; and
WHEREAS, Assembly Bill 1200 does not include a verification mechanism to assist food providers in identifying whether the food packaging contains PFAS; and WHEREAS, this ordinance requires that food service ware used by a food provider in Cupertino be certified as PFAS‐free by an independent third‐party certifying organization to assist Cupertino food providers in identifying PFAS‐free food service ware; and
WHEREAS, the State also recently adopted Assembly Bill 1276, which prohibits the distribution of single‐use food service ware accessories and standard condiments packaged for single use by food providers except upon request by the consumer; and 577
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Ordinance No. __________

Page 2 ends

WHEREAS, this ordinance is consistent with the City of Cupertino’s Zero Waste Policy and Climate Action Plan that seek to reduce solid waste at its source and reduce single‐use food service ware and packaging;
WHEREAS, the State adopted SB 270 on November 8, 2016 which requires certain retail stores to charge 10 cents for a reusable grocery bag or recycled paper bag and thus requiring an update to the language in Cupertino’s municipal code; and WHEREAS, the City Council of the City of Cupertino held a duly noticed public hearing on [date], and after considering all testimony and written materials provided in connection with that hearing introduced this ordinance and waived the reading thereof;

NOW, THEREFORE, THE CITY COUNCIL OF THE 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.
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Ordinance No. __________

Page 3 ends

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 to regulate the use of single‐use foodware by food providers would have no or only a de minimis effect on the environment because reducing disposable plastic foodware items such as straws, utensils, and stirrer sticks and having compostable alternatives offered only upon request and other provisions of the ordinance would not have the potential for causing a significant 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 May 17, 2022 and ENACTED at a regular meeting of the Cupertino City Council on June 7, 2022 by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:
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Ordinance No. __________

Page 4 ends

ABSTAIN:

SIGNED:
______________________
Darcy Paul, Mayor
City of Cupertino
________________________
Date
ATTEST:
_______________________
Kirsten Squarcia, City Clerk

________________________
Date
APPROVED AS TO FORM:
_______________________
Christopher D. Jensen, City Attorney
________________________
Date
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Attachment A – Page 1
Attachment A – AN ORDINANCE OF THE CITY OF CUPERTINO TO REGULATE THE USE OF SINGLE‐USE FOOD SERVICE WARE BY FOOD PROVIDERS AND REGULATE THE SALE OF SINGLE‐USE FOOD SERVICE WARE AND EXPANDED

POLYSTYRENE FOAM COOLERS AND REGULATE THE PROVISION OF
SINGLE‐USE CARRYOUT BAGS
The sections of the Cupertino Municipal Code set forth below are amended or adopted as follows:

Text added to existing provisions is shown in bold double‐underlined text (example) and text to be deleted in shown in strikethrough (example). Text in existing provisions is not amended or readopted by this Ordinance. Text in italics is explanatory and is not an amendment to the Code.

Where the explanatory text indicates that a new section is being added to the City Code, the new section is shown in plain text.

This ordinance amends several portions of the Municipal Code. For ease of review, the amendments advancing the primary objective are presented first followed by conforming amendments. There is a separate heading in bold italics for each portion of the Code being amended. Each portion is shown beginning on a separate page.

SECTION 1. ADDITION OF SECTION 9.15.090 CONCERNING THE PURPOSES OF REGULATION OF THE USE AND SALE OF SINGLE‐USE FOOD SERVICE WARE

AND EXPANDED POLYSTYRENE FOAM COOLERS

9.15.090 Purpose of Chapter
A. This chapter is determined and declared to be a health, sanitary, and safety measure for the promotion, protection and preservation of the health, safety and general welfare of the people and environment of the City of Cupertino.

B. Single‐use disposable food service ware and beverage packaging ‐ including plates, cutlery, cups, straws, “clamshells” and other containers ‐ are major contributors to street litter, ocean pollution, marine and other wildlife harm, depletion of natural resources, and greenhouse gas emissions.

C. Plastic litter breaks down into smaller pieces that are not biodegradable, persist in the environment on land and sea, and are present in most of the world’s oceans. 581
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D. Among other hazards, plastic debris attracts and concentrates ambient pollutants, such as endocrine disrupters and persistent organic pollutants, in seawater and freshwater that can transfer to fish, other seafood, and salt that is eventually consumed. Nine of the top ten most common debris items found on beaches in the U.S. during International Coastal Cleanup Day are single‐use food and beverage plastic packaging items.

E. Discharge of litter into waters of the United States is prohibited by the Federal Clean Water Act and the City’s stormwater pollution prevention permit as issued by the San Francisco Bay Regional Water Quality Control Board.

F. Even if certain types of single‐use plastic food service ware are accepted as recyclable by the City of Cupertino’s approved recyclables processor, when those items have food and grease residue on them, they become a contaminant to the recycling stream.

G. Natural fiber‐based food service ware items can be diverted from landfill and processed into compost even when they have food and grease residue on them.

H. Certain synthetic chemicals known as Per‐ and Polyfluoroalkyl Substances (PFAS), which are commonly used in disposable food service ware to repel water and grease, pose a public health risk as they have been linked to serious health effects.

I. Polystyrene foam food service ware and other items made from unencapsulated foamed materials are a distinctive litter concern because they are lightweight, break apart easily, are windblown into streets and waterways, and float in water until it reaches the San Francisco Bay and ocean.

J. The City of Cupertino intends to reduce solid waste at its source and maximize recycling and composting in accordance with Cupertino’s Climate Action Plan, Zero Waste Policy, and stormwater pollution prevention permit.

K. Reducing disposable packaging by eliminating unnecessary items and transitioning to reusable products provides greater environmental benefits than managing the products that become waste, even when recycled or composted. 582
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SECTION 2. AMENDMENTS TO SECTION 9.15.100 CONCERNING DEFINITIONS

9.15.100 Definitions

For the purposes of this chapter, the following words and phrases shall have the meanings ascribed to them by this section, unless the context or the provision clearly requires otherwise:

1. ʺBeverage Providerʺ means any business, organization, entity, group, or person that offers liquid, slurry, frozen, semi‐frozen, or other forms of beverages to the public for consumption. Beverage Provider also includes any organization, entity, group or person that regularly provides beverages to its members or the general public as a part of its activities or services.

2. “Biodegradable Products Institute (BPI)” refers to a certification program that ensures that products and packaging displaying the BPI logo have been independently tested and verified according to scientifically based standards to successfully break down in professionally managed industrial composting facilities. BPI‐certified products meet the standards of the American Society for Testing Materials (ASTM) D6400 or D6868 for compostability. As of January 1, 2020, all BPI‐certified products are required to have (1) a limit of 100 parts per million (ppm) total Fluorinated Chemicals as the upper threshold for acceptance and (2) no intentionally added Fluorinated Chemicals.

3. “City” means the City of Cupertino.

4. “City Facility” means any building, structure, or vehicle owned or operated by the City.

5. “City Facility Food Provider” means an entity that provides, but does not sell, Prepared Food in City Facilities.

6. “City Manager” means the City of Cupertino’s City Manager or their designee.

7. “County” means the County of Santa Clara.

8. “Compostable” means that an item or material is (1) accepted in City’s available composting collection program as fully compostable; (2) is listed, described, or referenced on the City’s website as compostable; and (3) is certified compostable by the Biodegradable Product Institute or other third party recognized by the Director, or his or her designee.
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9. “Contractors and Lessees” means any person or entity that has a contract with the City of Cupertino for public works or improvements to be performed, for a franchise, concession, or lease of property, for grant monies or goods and services or supplies to be purchased at the expense of the City of Cupertino.

10. “Director” means the City of Cupertino’s Director of Public Works or their designee.

A. ʺDisposable food service wareʺ means single‐use disposable products used in the restaurant and food service industry for serving prepared food and includes, but is not limited to, plates, trays, cups, bowls, and hinged or lidded containers (clamshells). ʺDisposable food service wareʺ does not include straws, utensils, drink lids, or ice chests.

11. “Distribute” means the sale, offer for sale, or other transfer of possession of an item for compensation, either as a separate transaction or as part ofthe sale, offer for sale, or other transfer of possession of another item for compensation.

12. “Fluorinated Chemical” means a class of fluorinated organic compounds containing at least one fully fluorinated carbon atom, also known as per‐ and polyfluoroalkyl substances, or PFAS chemicals.

13. “Food Container” means a container, bowl, plate, tray, or other vessel used to hold Prepared Food.

14. “Food Provider” means any establishment, provider, non‐profit vendor, or business, operating within the City that sells Prepared Food (1) to the public for consumption on or off its premises, at a catered event, and/or (2) at cafeterias and places of employment, whether or not such establishments are open to the general public. Food Provider includes but is not limited to, restaurants, retail food establishments, caterers, cafeterias, stores, shops, retail sales outlets, grocery stores, delicatessens serving the public, mobile or temporary food providers, vehicles or carts, or roadside stands.

15. “Food Service Ware” means any products used for serving or consuming prepared food and includes, but is not limited to, cups, bowls, plates, trays, cartons, boxes, wrapper or liners, hinged or lidded containers (clamshells), and other items used as part of food or beverage service or in which Prepared Food is placed or packaged on a Prepared Food Provider’s premises. 584
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16. “Food Service Ware Accessory” means any type of accessory or accompanying items usually provided alongside Prepared Food in plates, containers, bowls, or cups, including but not limited to utensils, chopsticks, napkins, cup sleeves, food or beverage trays, condiment packets and saucers, straws, stirrers, splash sticks, spill plugs, cocktail sticks, and toothpicks.

B. ʺFood vendorʺ means any establishment located in the City of Cupertino that sells or otherwise provides prepared food for consumption on or off its premises, and includes, but is not limited to, any shop, sales outlet, restaurant, bar, pub, coffee shop, cafeteria, caterer, convenience store, liquor store, grocery store, supermarket, delicatessen, mobile food truck, vehicle or cart, or roadside stand.

17. “Person” means an individual, trust, firm, joint stock company, corporation including a government corporation, partnership, or association.

18. “Per‐ and Polyfluoroalkyl Substances” means, for the purposes of food packaging, a class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

19. C. ʺPolystyrene fFoamʺ means a thermoplastic petrochemical material made from a styrene monomer and expanded or blown using a gaseous agent (expanded polystyrene) including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, form molding, and extrusion‐blow molding (extruded foam polystyrene). ʺPolystyrene foamʺ is commonly made into disposable food service ware products. ʺPolystyrene foamʺ does not include clear or solid polystyrene (oriented polystyrene).

D. ʺPrepared Foodʺ means food or beverages that are packaged, cooked, chopped, sliced, mixed, brewed, frozen, squeezed or otherwise prepared on the premises. ʺPrepared foodʺ does not include:
a. Any raw, uncooked meat products, fruits, or vegetables, unless it is intended for consumption without further preparation; or b. Prepackaged food that is delivered to the food vendor wholly encased, contained or packaged in a container or wrapper, and sold or otherwise provided by the food vendor in the same container or packaging.

20. “Prepared Food” means food or beverages that are served, packaged, cooked, chopped, sliced, mixed, brewed, frozen, squeezed or otherwise prepared on the 585
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premises of a food provider for consumption, including, but not limited to, ready‐to‐eat, dine‐in, take‐out or complimentary food or beverage. “Prepared food” does not include: (1) raw eggs and raw, butchered meat, fish or poultry that is sold from a butcher case or a similar retail method; (2) prepackaged food that is delivered to the food provider wholly encased, contained or packaged in a container or wrapper, and sold or otherwise provided by the food provider in the same container or packaging; or (3) nonpolystyrene foam prepackaged items prepared on‐site, which are not made to order and sold as “grocery items.”

21. “Raw Food” means any uncooked meat, fish, poultry, vegetable, fruit, or egg.

22. “Recyclable” means material that can be sorted, cleansed, and reconstituted and accepted by the City’s available recycling collection programs for the purpose of using the altered form in the manufacture of a new product.

23. “Reusable Food Service Ware” means all food service ware, including plates, bowls, cups, trays, glasses, straws, stirrers, condiment cups and utensils, that is manufactured of durable materials and that is specifically designed and manufactured to be washed and sanitized and to be used repeatedly over an extended period of time, and is safe for washing and sanitizing according to applicable regulations.

24. “Single‐use” means not meeting the definition of Reusable in these definitions.

25. “Standard Condiments and Spices” means relishes, spices, sauces, confections, or seasonings that require no additional preparation and that are usually used on a food item after preparation, including ketchup, mustard, mayonnaise, soy sauce, hot sauce, salsa, salt, pepper, sugar, and sugar substitutes or others as determined by the City.

26. “State” means the State of California.

27. “Takeout Food” means Prepared Food requiring no further preparation, which is purchased to be consumed off a Prepared Food Provider’s premises. Takeout Food includes Prepared Food delivered by a Food Provider or by a third‐party Takeout Food Delivery Service.

28. “Takeout Food Delivery Service” is a service that delivers Takeout Food from a Food Provider to a customer for consumption off the premises. This service can be provided directly by the Food Provider or by a third‐party. 586
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29. “Third Party Food Delivery Platform” means a business engaged in the service of online food ordering and/or delivery from a Prepared Food Provider to a consumer.

SECTION 3. AMENDMENTS TO SECTION 9.15.110 CONCERNING REGULATION

OF FOOD SERVICE WARE AND POLYSTYRENE FOAM COOLERS USED BY FOOD

PROVIDERS AND SOLD BY RETAILERS

9.15.110 Polystyrene Foam Disposal Food Service Ware Prohibited. Regulation of Food Service Ware and Polystyrene Foam Coolers Used by Food Providers and Sold by Retailers
No food vendor shall sell or otherwise provide prepared food in polystyrene foam disposable food service ware on or after July 1, 2014.

A. ACCESSORIES ONLY UPON CUSTOMER REQUEST
On or after June 1, 2022:

1. Food Providers shall provide Single‐use Food Service Ware Accessories and Standard Condiments in single serve packets only upon request by customers during on‐premises dining or when using a third‐party food delivery platform.

Single‐use Food Service Ware Accessories and Standard Condiments packaged for single use provided by Prepared Food Providers for use by consumers shall not be bundled or packaged in a manner that requires a consumer to take a different type of Single‐use Food Service Ware Accessory or Standard Condiment

2. Self‐serve accessory stations are prohibited.

3. Food Providers and Beverage Providers, as well as City facilities, City‐managed concessions, City‐sponsored events, and City‐permitted events, may provide plastic straws as an accommodation to people with disabilities who request them to enjoy equal access to food and beverage services within the City.

4. Prepared Food Providers offering Standard Condiments and Spices are encouraged to use dispensers or bulk containers rather than pre‐packaged individual serving packets.

5. Takeout Food Delivery Services that utilize digital ordering/point of sale platforms, including but not limited to the internet and smart‐phone, shall only 587
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offer Single‐Use Food Service Ware Accessories by providing clear options for customers to affirmatively request these items separate from orders for food and beverages. The default option on the digital ordering/point of sale platforms shall be that no Single‐Use Food Service Ware Accessories are requested. Each individual Single‐Use Food Service Ware Accessory (e.g., each fork, knife, condiment packet, napkin, etc.) provided with Prepared Food must be specifically requested by the customer in order for a Food Provider to provide it.

6. A Prepared Food Provider may ask a drive‐through consumer if the consumer wants a Single‐use Food Service Ware Accessory if the Single‐use Food Service Ware Accessory is necessary for the consumer to consume ready‐to‐eat food, or to prevent spills of or safely transport ready‐to‐eat food.

7. For delivery orders, Prepared Food Providers may choose to include specific accessories, such as cup lids, spill plugs, and trays, in order to prevent spills and deliver food and beverages safely.

B. USE OF NON‐COMPLIANT FOOD SERVICE WARE PROHIBITED
On or after June 1, 2023:

1. Prepared Food or Beverage Providers, including City Facility Prepared Food Providers, and City Contractors and Lessees may not sell, offer for sale, or otherwise distribute Prepared Food prepared or packaged in Cupertino using:
a. Single‐use Food Service Ware or Food Ware Accessories made, in whole or in part, from Polystyrene Foam;
b. Single‐use Food Service Ware made, or Food Ware Accessories made, in whole or in part, from plastic including polyethylene, polyethylene terephthalate, polypropylene, polystyrene, even if accepted as recyclable by the City’s approved recyclables processing facility; c. Single‐use Food Service Ware or Food Ware Accessories that are Compostable and not certified free of Fluorinated Chemicals by an independent third‐party certifying organization approved by the Director, or their designee;
d. Single‐Use Food Service Ware or Food Ware Accessories made in whole or in part from bio‐ or plant‐based or other “compostable” plastic even if labeled or certified as compostable.
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2. The Director, or their designee, may adopt a list, or reference an approved list, of suitable alternative Compostable or Recyclable aluminum Single‐use Food Service Ware products, which means Single‐use Food Service Ware products that serve the same intended purpose as non‐compliant products, meet the standards for what is Compostable and/or Recyclable aluminum under this Chapter, and are reasonably affordable. If a product is not included or referenced on an approved list, the person using the product as Single‐use Food Service Ware will have the burden of establishing to the Director’s satisfaction that the product complies with this Section.

3. It shall not be a violation of this Section to sell, provide, or purchase Prepared Food or Raw Food or Beverage packaged in Single‐Use Food Service Ware otherwise prohibited by subsection (1) if the Prepared Food or Raw Food or Beverage is packaged outside the City and is sold or otherwise provided to the consumer in the same Single‐use Food Service Ware in which it originally was packaged. Businesses packaging Prepared Food outside the City are encouraged to use Single‐use Food Service Ware that is Compostable or Recyclable aluminum, is Compostable and free of Fluorinated Chemicals, and is not made, in whole or in part, from Polystyrene.

C. REUSABLE FOOD SERVICE WARE FOR DINING ON PREMISES
On or after June 1, 2023:

1. Prepared Food served for consumption on the Prepared Food Provider’s premises shall be served only on Reusable Food Service Ware, except that disposable paper food wrappers, sleeves, and bags, foil wrappers, paper napkins, paper tray and plate liners, and straws shall be permitted, so long as they meet the requirements set forth elsewhere in this Chapter.

2. Condiments, such as sauces, ketchup, or mustard, provided for on‐site consumption, shall not be served in disposable, individual‐serving packets.

3. Consumption is considered on‐premises if it takes place at tables and/or seating provided by the Prepared Food Provider either on its own orin conjunction with another Prepared Food Provider.

4. New building permits and new or renewed business licenses for Food Service Providers applied for, and/or deemed complete after 6/1/2023 shall only be granted to Prepared Food Providers that can demonstrate adequate capacity to comply with subsection C.1.
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10 5. This requirement does not prohibit a Prepared Food Provider from providing, upon a customer’s request, Single‐use Food Service Ware compliant with subsection B.1 for the customer to take away leftover Prepared Food after dining on the premises.

6. Prepared Food Providers subject to the requirements of subsection C.1 that do not have onsite or off‐site dishwashing capacity, or are unable to contract for services to wash, rinse, and sanitize Reusable Food Service Ware, in order to comply with applicable provisions of the California Health and Safety Code, may petition the Director for an exemption or extension under 9.15.120.

D. SALE OR DISTRIBUTION OF NON‐COMPLIANT FOOD SERVICE WARE AND

EXPANDED POLYSTYRENE FOAM COOLERS PROHIBITED
On or after June 1, 2023:

1. No Person may sell, offer for sale, or otherwise Distribute within the City any Single‐use Food Service Ware prohibited under Sections B.1.a. or B.1.d.

2. No person may sell, offer for sale, or otherwise distribute for compensation within the City coolers, ice chests, or similar containers made, in whole or in part, from Polystyrene Foam that is not wholly encapsulated or encased within a more durable material.

3. Pursuant to Section B.3, the Director may adopt, maintain, or reference a list of compliant products.

SECTION 4. AMENDMENTS TO SECTION 9.15.120 CONCERNING EXEMPTIONS A. A fFood vendor Provider may seek an exemption from the requirements under Section 9.15.110 due to a ʺunique packaging hardshipʺ under Subsection B of this section, or ʺunused inventoryʺ under Subsection C of this section, “significant economic hardship” under Subsection D, or request a temporary exemption to request extra time for compliance under Subsection E.

B. The fFood vendor Provider must demonstrate that no reasonably feasible alternative exists for to a specific and necessary polystyrene foam disposable prohibited Single‐Use food service ware item to qualify for a ʺunique packaging hardshipʺ exemption.
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11 C. The fFood vendor Provider must demonstrate that before January 1, 2014[new effective date of this ordinance], it purchased the prohibited polystyrene foam food service ware which cannot be returned to the distributor and, despite the food vendorʹs best efforts, will remain in inventory on July 1, 2014[date], to qualify for an ʺunused inventoryʺ exemption.

D. The Food Provider must demonstrate that the provisions of this Chapter would cause significant economic hardship. “Significant economic hardship” may be based on, but not limited to, demonstrating that suitable Single‐use Food Service Ware is not available at a commercially reasonable price and the additional cost associated with providing the Single‐Use Food Service Ware is particularly burdensome to the Food Provider based on the type of operation(s) affected, the overall size of the business/operation, the number, type and location of its facilities, the impact on the overall financial resources of the Food Provider, and other factors. Reasonable added cost for an item required by this Chapter shall not by itself constitute adequate grounds to support an exemption for such item. In determining whether a significant economic hardship has been established, the Director shall consider the following information: ability of the Food Provider to recover the additional expense by increasing its prices, outside funding, and other options.

E. The Food Provider must demonstrate that for other reasons not already stated it needs additional time to comply with the provisions of this Chapter.

F. D. The fFood vendor Provider may submit a written application for an exemption on a form provided by to the Environmental Programs Division. The Director of Public Works designee (ʺDirectorʺ) may require the applicant to submit additional information or documentation to make a determination regarding the exemption request. A request for exemption shall be reviewed on a case by case basis, and may be granted in whole or in part, with or without conditions, for a period of up to six (6) months or to January 1, 2015, whichever comes first one year. The determination of the Director shall be final and is not subject to appeal.

G. Prepackaged Food delivered from outside the City is exempt from the provisions of this Chapter.

H. Disposable Food Service Ware that is entirely Aluminum Foil‐based including, but not limited to, aluminum trays, aluminum foil wrappers and aluminum foil baskets, is exempt from the provisions of this Chapter. 591
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12 I. Temporary exemptions due to an emergency are automatic without the submission of a request for an exemption. An emergency is defined as a sudden, unexpected occurrence posing a clear and imminent danger that requires immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. Examples of an emergency include, but are not limited to natural disasters, emergencies due to the release of hazardous materials, emergencies associated with loss of power and/or water, or emergency medical response.

SECTION 5. ADDITION OF NEW SECTION 9.15.125 CONCERNING

RECORDKEEPING AND INSPECTION

9.15.125 Recordkeeping and inspection.

A. Food Providers shall keep a complete and accurate record or documents of the purchase of Single‐use Food Service Ware evidencing compliance with this Chapter.

B. The record shall be made available for inspection at no cost during regular business hours to City employees or City‐designated agents authorized to enforce this Chapter. Unless an alternative location or method of review is mutually agreed upon, the records or documents shall be made available at the Food Provider address.

C. The provision of false or incomplete information, records or documents to the city shall be a violation of this Chapter.

SECTION 6. AMENDMENTS TO SECTION 9.15.130 CONCERNING

ADMINISTRATIVE CITATIONS AND FINES

9.15.130 Administrative citations and fines.

A. (a)   Grounds for an administrative citation.  An administrative citation may be issued upon findings made by the City Manager, or his or her designee, when any person or food vendor has provided EPS foam food service ware to a customer or for violationed of any other provision of this Chapter.
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13 B. (b)   Administrative citation fine amounts. Upon findings made under subsection (Aa), the pPerson, Beverage Provider, or fFood vendor Provider shall be subject to an administrative citation pursuant to Chapter 1.10 of this Code.   Fines for the administrative citation are as follows:
(1)   First citation: One hundred dollars ($100.00).
(2)   Second citation for the same violation within the same twelve month period: Two hundred dollars ($200.00)
(3)   Third or any subsequent citation for the same violation within the same twelve month period: Five hundred dollars ($500.00)
(4)   Each day that any person or food vendor violates the provisions of this cChapter is a new and separate violation occurs.
(c)   Administrative citation appeals and disposition shall be processed in accordance with Chapter 1.10 of this Code.

SECTION 7. AMENDMENTS TO SECTION 9.17.130 CONCERNING REGULATION OF SINGLE‐USE CARRYOUT BAGS

9.17.130 Single‐uUse cCarryout bBags
A. No person or retail establishment shall provide a single‐use carryout bag Single‐Use Carryout Bag to a customer, at the check stand, cash register, point of sale or other point of departure for the purpose of transporting food or merchandise out of the establishment except as provided in this section or in section 9.17.140.

B. Effective October 1, 2013 a A retail establishment may only make recycled paper or reusable bags available to customers if the retailer charges a minimum of ten cents.

Reusable bags may be given by retailers without charge.

C. Notwithstanding this section, no retail establishment may make available for sale a recycled paper or reusable bag unless the amount of the sale of such bag is separately itemized on the sale receipt.

D. A retail establishment may provide one or more recycled paper or reusable bags at no cost to any of the following individuals: a customer participating in the California Special Supplement Food Program for Women, Infants, and Children 593
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14 pursuant to Article 2 (commencing with Section 123275) of Chapter 1 of Part 2 of Division 106 of the Health and Safety Code; a customer participating in the Supplemental Food Program pursuant to Chapter 10 (commencing with Section 15500) of Part 3 of Division 9 of the California Welfare and Institutions Code; and a customer participating in Calfresh pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the California Welfare and Institutions Code.

9.17.140 Exemptions
The provisions of this Chapter shall not apply in the following circumstances where:

1. A plastic or paper carryout bag with or without handles is may be provided by a public eating establishment to transport prepared food; Beginning June 1, 2023, a public eating establishment may no longer provide single‐use plastic carryout bags but may provide a recycled paper or reusable bag to transport prepared food at no charge.

2. A plastic or paper bag with or without handles is may be provided by a nonprofit charitable reuser;

3. A plastic or paper bag without handles is may be provided to transport prepared food, produce, bulk food, or meat from a department within a store to the point of sale;

4. A plastic or paper bag without handles is may be provided to hold prescription medication dispensed from a pharmacy;

5. A plastic or paper bag without handles is may be used to segregate food or merchandise that could damage or contaminate other food or merchandise when placed together in a reusable bag or recycled bag;

6. A garment bag or garment cover may be used to protect and transport clothing or other textiles.
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Attachment B
1 ORDINANCE NO. __________________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING CITY CODE TO CHANGE THE NAME OF CHAPTER 9.15, ADOPT NEW SECTIONS 9.15.090 AND 9.15.125, AND AMEND SECTIONS 9.15.100, 9.15.110,

9.15.120, 9.15.130, 9.17.130 AND 9.17.140 TO REGULATE THE USE OF SINGLE‐USE

FOOD SERVICE WARE BY FOOD PROVIDERS AND REGULATE THE SALE OF SINGLE‐USE FOOD SERVICE WARE AND EXPANDED POLYSTYRENE FOAM COOLERS, AND REGULATE SINGLE‐USE CARRYOUT BAGS

1. The City Council of the City of Cupertino finds that:

WHEREAS, on February 5, 2014, the City of Cupertino adopted an ordinance to prohibit food vendors from providing prepared food using food packaging containing polystyrene foam, currently codified as Chapter 9.15 of the City Code; and WHEREAS, this ordinance continues to prohibit the sale and use of polystyrene foam food service ware and also further regulates single‐use food service ware and food service ware accessories in Cupertino; and
WHEREAS, the State adopted AB 619 in July 2019, which allows consumers to supply their own reusable containers for filling or refilling and requires that food establishments have an established procedure for safely accepting reusable containers; and
WHEREAS, the State recently adopted Assembly Bill 1200, which prohibits the sale or distribution of food packaging made primarily from paper, paperboard, or other natural fiber that contains per‐ and polyfluoroalkyl substances (PFAS) in California beginning January 1, 2023; and
WHEREAS, Assembly Bill 1200 does not include a verification mechanism to assist food providers in identifying whether the food packaging contains PFAS; and WHEREAS, this ordinance requires that food service ware used by a food provider in Cupertino be certified as PFAS‐free by an independent third‐party certifying organization to assist Cupertino food providers in identifying PFAS‐free food service ware; and
WHEREAS, the State also recently adopted Assembly Bill 1276, which prohibits the distribution of single‐use food service ware accessories and standard condiments packaged for single use by food providers except upon request by the consumer; and 595
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Ordinance No. __________

Page 2 ends

NOW, THEREFORE, THE CITY COUNCIL OF THE 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.

SECTION 3: California Environmental Quality Act.
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Ordinance No. __________

Page 3 ends

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.

INTRODUCED at a regular meeting of the Cupertino City Council on May 17, 2022 and ENACTED at a regular meeting of the Cupertino City Council on June 7, 2022 by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:
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Ordinance No. __________

Page 4 ends

SIGNED:
______________________
Darcy Paul, Mayor
City of Cupertino
________________________
Date
ATTEST:
_______________________
Kirsten Squarcia, City Clerk

________________________
Date
APPROVED AS TO FORM:
_______________________
Christopher D. Jensen, City Attorney
________________________
Date
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Attachment A – Page 1
Attachment B – AN ORDINANCE OF THE CITY OF CUPERTINO TO REGULATE THE USE OF SINGLE‐USE FOOD SERVICE WARE BY FOOD PROVIDERS AND REGULATE THE SALE OF SINGLE‐USE FOOD SERVICE WARE AND EXPANDED

POLYSTYRENE FOAM COOLERS AND REGULATE THE PROVISION OF
SINGLE‐USE CARRYOUT BAGS
SECTION 1. ADDITION OF SECTION 9.15.090 CONCERNING THE PURPOSES OF REGULATION OF THE USE AND SALE OF SINGLE‐USE FOOD SERVICE WARE AND

EXPANDED POLYSTYRENE FOAM COOLERS

C. Plastic litter breaks down into smaller pieces that are not biodegradable, persist in the environment on land and sea, and are present in most of the world’s oceans.

D. Among other hazards, plastic debris attracts and concentrates ambient pollutants, such as endocrine disrupters and persistent organic pollutants, in seawater and freshwater that can transfer to fish, other seafood, and salt that is eventually consumed. Nine of the top ten most common debris items found on beaches in the U.S. during International Coastal Cleanup Day are single‐use food and beverage plastic packaging items.

F. Even if certain types of single‐use plastic food service ware are accepted as recyclable by the City of Cupertino’s approved recyclables processor, when those 599
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items have food and grease residue on them, they become a contaminant to the recycling stream.

G. Natural fiber‐based food service ware items can be diverted from landfill and processed into compost even when they have food and grease residue on them.

SECTION 2. AMENDMENTS TO SECTION 9.15.100 CONCERNING DEFINITIONS

9.15.100 Definitions

For the purposes of this chapter, the following words and phrases shall have the meanings ascribed to them by this section, unless the context or the provision clearly requires otherwise:

3. “City” means the City of Cupertino.

4. “City Facility” means any building, structure, or vehicle owned or operated by the City.

5. “City Facility Food Provider” means an entity that provides, but does not sell, Prepared Food in City Facilities.

6. “City Manager” means the City of Cupertino’s City Manager or their designee.

7. “County” means the County of Santa Clara.

10. “Director” means the City of Cupertino’s Director of Public Works or their designee.

11. “Distribute” means the sale, offerfor sale, or other transfer of possession of an item for compensation, either as a separate transaction or as part of the sale, offer for sale, or other transfer of possession of another item for compensation. 601
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13. “Food Container” means a container, bowl, plate, tray, or other vessel used to hold Prepared Food.

17. “Person” means an individual, trust, firm, joint stock company, corporation including a government corporation, partnership, or association.

18. “Per‐ and Polyfluoroalkyl Substances” means, for the purposes of food packaging, a class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.

19. ʺPolystyrene Foamʺ means a thermoplastic petrochemical material made from a styrene monomer and expanded or blown using a gaseous agent (expanded polystyrene) including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, form molding, and extrusion‐blow molding (extruded foam polystyrene).
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20. “Prepared Food” means food or beverages that are served, packaged, cooked, chopped, sliced, mixed, brewed, frozen, squeezed or otherwise prepared on the premises of a food provider for consumption, including, but not limited to, ready‐ to‐eat, dine‐in, take‐out or complimentary food or beverage. “Prepared food” does not include: (1) raw eggs and raw, butchered meat, fish or poultry that is sold from a butcher case or a similar retail method; (2) prepackaged food that is delivered to the food provider wholly encased, contained or packaged in a container or wrapper, and sold or otherwise provided by the food provider in the same container or packaging; or (3) nonpolystyrene foam prepackaged items prepared on‐site, which are not made to order and sold as “grocery items.”

21. “Raw Food” means any uncooked meat, fish, poultry, vegetable, fruit, or egg.

24. “Single‐use” means not meeting the definition of Reusable in these definitions.

26. “State” means the State of California.

28. “Takeout Food Delivery Service” is a service that delivers Takeout Food from a Food Provider to a customer for consumption off the premises. This service can be provided directly by the Food Provider or by a third‐party. 603
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29. “Third Party Food Delivery Platform” means a business engaged in the service of online food ordering and/or delivery from a Prepared Food Provider to a consumer.

SECTION 3. AMENDMENTS TO SECTION 9.15.110 CONCERNING REGULATION OF

FOOD SERVICE WARE AND POLYSTYRENE FOAM COOLERS USED BY FOOD

PROVIDERS AND SOLD BY RETAILERS

9.15.110 Regulation of Food Service Ware and Polystyrene Foam Coolers Used by Food Providers and Sold by Retailers
A. ACCESSORIES ONLY UPON CUSTOMER REQUEST
On or after June 1, 2022:

2. Self‐serve accessory stations are prohibited.

4. Prepared Food Providers offering Standard Condiments and Spices are encouraged to use dispensers or bulk containers rather than pre‐packaged individual serving packets.

5. Takeout Food Delivery Services that utilize digital ordering/point of sale platforms, including but not limited to the internet and smart‐phone, shall only offer Single‐Use Food Service Ware Accessories by providing clear options for customers to affirmatively request these items separate from orders for food and beverages. The default option on the digital ordering/point of sale platforms shall be that no Single‐Use Food Service Ware Accessories are requested. Each individual Single‐Use Food Service Ware Accessory (e.g., each fork, knife, 604
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condiment packet, napkin, etc.) provided with Prepared Food must be specifically requested by the customer in order for a Food Provider to provide it.

7. For delivery orders, Prepared Food Providers may choose to include specific accessories, such as cup lids, spill plugs, and trays, in order to prevent spills and deliver food and beverages safely.

B. USE OF NON‐COMPLIANT FOOD SERVICE WARE PROHIBITED
On or after June 1, 2023:

1. Prepared Food or Beverage Providers, including City Facility Prepared Food Providers, and City Contractors and Lessees may not sell, offer for sale, or otherwise distribute Prepared Food prepared or packaged in Cupertino using:
a. Single‐use Food Service Ware or Food Ware Accessories made, in whole or in part, from Polystyrene Foam;
b. Single‐use Food Service Ware made, or Food Ware Accessories made, in whole or in part, from plastic including polyethylene, polyethylene terephthalate, polypropylene, polystyrene, even if accepted as recyclable by the City’s approved recyclables processing facility;
c. Single‐use Food Service Ware or Food Ware Accessories that are Compostable and not certified free of Fluorinated Chemicals by an independent third‐party certifying organization approved by the Director, or their designee;
d. Single‐Use Food Service Ware or Food Ware Accessories made in whole or in part from bio‐ or plant‐based or other “compostable” plastic even if labeled or certified as compostable.

2. The Director, or their designee, may adopt a list, or reference an approved list, of suitable alternative Compostable or Recyclable aluminum Single‐use Food Service Ware products, which means Single‐use Food Service Ware products that serve the same intended purpose as non‐compliant products, meet the standards for what is Compostable and/or Recyclable aluminum under this Chapter, and are reasonably affordable. If a product is not included or referenced on an approved list, the person using the product as Single‐use Food Service Ware will have the 605
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burden of establishing to the Director’s satisfaction that the product complies with this Section.

Businesses packaging Prepared Food outside the City are encouraged to use Single‐use Food Service Ware that is Compostable or Recyclable aluminum, is Compostable and free of Fluorinated Chemicals, and is not made, in whole or in part, from Polystyrene.

C. REUSABLE FOOD SERVICE WARE FOR DINING ON PREMISES
On or after June 1, 2023:

2. Condiments, such as sauces, ketchup, or mustard, provided for on‐site consumption, shall not be served in disposable, individual‐serving packets.

3. Consumption is considered on‐premises if it takes place at tables and/or seating provided by the Prepared Food Provider either on its own or in conjunction with another Prepared Food Provider.

5. This requirement does not prohibit a Prepared Food Provider from providing, upon a customer’s request, Single‐use Food Service Ware compliant with subsection B.1 for the customer to take away leftover Prepared Food after dining on the premises.

6. Prepared Food Providers subject to the requirements of subsection C.1 that do not have onsite or off‐site dishwashing capacity, or are unable to contract for services 606
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to wash, rinse, and sanitize Reusable Food Service Ware, in order to comply with applicable provisions of the California Health and Safety Code, may petition the Director for an exemption or extension under 9.15.120.

D. SALE OR DISTRIBUTION OF NON‐COMPLIANT FOOD SERVICE WARE AND

EXPANDED POLYSTYRENE FOAM COOLERS PROHIBITED
On or after June 1, 2023:

1. No Person may sell, offer for sale, or otherwise Distribute within the City any Single‐use Food Service Ware prohibited under Sections B.1.a. or B.1.d.

3. Pursuant to Section B.3, the Director may adopt, maintain, or reference a list of compliant products.

SECTION 4. AMENDMENTS TO SECTION 9.15.120 CONCERNING EXEMPTIONS A. A Food Provider may seek an exemption from the requirements under Section

9.15.110 due to a ʺunique packaging hardshipʺ under Subsection B of this section, ʺunused inventoryʺ under Subsection C of this section, “significant economic hardship” under Subsection D, or request a temporary exemption to request extra time for compliance under Subsection E.

B. The Food Provider must demonstrate that no reasonably feasible alternative exists for a specific and necessary prohibited Single‐Use food service ware item to qualify for a ʺunique packaging hardshipʺ exemption.

C. The Food Provider must demonstrate that before [new effective date of this ordinance], it purchased the prohibited food service ware which cannot be returned to the distributor and, despite the food vendorʹs best efforts, will remain in inventory on [date], to qualify for an ʺunused inventoryʺ exemption.

D. The Food Provider must demonstrate that the provisions of this Chapter would cause significant economic hardship. “Significant economic hardship” may be based on, but not limited to, demonstrating that suitable Single‐use Food Service Ware is not available at a commercially reasonable price and the additional cost 607
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10 associated with providing the Single‐Use Food Service Ware is particularly burdensome to the Food Provider based on the type of operation(s) affected, the overall size of the business/operation, the number, type and location of its facilities, the impact on the overall financial resources of the Food Provider, and other factors. Reasonable added cost for an item required by this Chapter shall not by itself constitute adequate grounds to support an exemption for such item. In determining whether a significant economic hardship has been established, the Director shall consider the following information: ability of the Food Provider to recover the additional expense by increasing its prices, outside funding, and other options.

E. The Food Provider must demonstrate that for other reasons not already stated it needs additional time to comply with the provisions of this Chapter.

F. The Food Provider may submit a written application for an exemption on a form to the Environmental Programs Division. The Director may require the applicant to submit additional information or documentation to make a determination regarding the exemption request. A request for exemption shall be reviewed on a case by case basis, and may be granted in whole or in part, with or without conditions, for a period of up to one year. The determination of the Director shall be final and is not subject to appeal.

G. Prepackaged Food delivered from outside the City is exempt from the provisions of this Chapter.

I. Temporary exemptions due to an emergency are automatic without the submission of a request for an exemption. An emergency is defined as a sudden, unexpected occurrence posing a clear and imminent danger that requires immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. Examples of an emergency include, but are not limited to natural disasters, emergencies due to the release of hazardous materials, emergencies associated with loss of power and/or water, or emergency medical response.
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11 SECTION 5. ADDITION OF NEW SECTION 9.15.125 CONCERNING

RECORDKEEPING AND INSPECTION

9.15.125 Recordkeeping and inspection.

A. Food Providers shall keep a complete and accurate record or documents of the purchase of Single‐use Food Service Ware evidencing compliance with this Chapter.

C. The provision of false or incomplete information, records or documents to the city shall be a violation of this Chapter.

SECTION 6. AMENDMENTS TO SECTION 9.15.130 CONCERNING ADMINISTRATIVE

CITATIONS AND FINES

9.15.130 Administrative citations and fines.

A. Grounds for an administrative citation. An administrative citation may be issued upon findings made by the City Manager, or his or her designee, for violation of any provision of this Chapter.

B. Administrative citation fine amounts. Upon findings made under subsection (A), the Person, Beverage Provider, or Food Provider shall be subject to an administrative citation pursuant to Chapter 1.10 of this Code.  Fines for the administrative citation are as follows:
(1)   First citation: One hundred dollars ($100.00).
(2)   Second citation for the same violation within the same twelve month period: Two hundred dollars ($200.00)
(3)   Third or any subsequent citation for the same violation within the same twelve month period: Five hundred dollars ($500.00)
(4)   Each day that any person or food vendor violates the provisions of this Chapter is a new and separate violation.
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12 (c)   Administrative citation appeals and disposition shall be processed in accordance with Chapter 1.10 of this Code.

SECTION 7. AMENDMENTS TO SECTION 9.17.130 CONCERNING REGULATION OF SINGLE‐USE CARRYOUT BAGS

9.17.130 Single‐Use Carryout Bags
A. No person or retail establishment shall provide a Single‐Use Carryout Bag to a customer, at the check stand, cash register, point of sale or other point of departure for the purpose of transporting food or merchandise out of the establishment except as provided in this section or in section 9.17.140.

B. A retail establishment may only make recycled paper or reusable bags available to customers if the retailer charges a minimum of ten cents.

D. A retail establishment may provide one or more recycled paper or reusable bags at no cost to any of the following individuals: a customer participating in the California Special Supplement Food Program for Women, Infants, and Children pursuant to Article 2 (commencing with Section 123275) of Chapter 1 of Part 2 of Division 106 of the Health and Safety Code; a customer participating in the Supplemental Food Program pursuant to Chapter 10 (commencing with Section 15500) of Part 3 of Division 9 of the California Welfare and Institutions Code; and a customer participating in Calfresh pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the California Welfare and Institutions Code.

9.17.140 Exemptions

1. A plastic or paper carryout bag with or without handles may be provided by a public eating establishment to transport prepared food; Beginning June 1, 2023, a public eating establishment may no longer provide single‐use plastic carryout bags but may provide a recycled paper or reusable bag to transport prepared food at no charge.

2. A plastic or paper bag with or without handles may be provided by a nonprofit charitable reuser;
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13 3. A plastic or paper bag without handles may be provided to transport prepared food, produce, bulk food, or meat from a department within a store to the point of sale;

4. A plastic or paper bag without handles may be provided to hold prescription medication dispensed from a pharmacy;

5. A plastic or paper bag without handles may be used to segregate food or merchandise that could damage or contaminate other food or merchandise when placed together in a reusable bag or recycled bag;

6. A garment bag or garment cover may be used to protect and transport clothing or other textiles.
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REGULATION OF SINGLE-USE FOOD SERVICE WARE BY FOOD PROVIDERS 6/1/2022 Enforcement date per AB1276

9.15.110 A ACCESSORIES ONLY UPON CUSTOMER REQUEST
A.1 Accessories and condiments only on request and unbundled for dine-in, take-out, and delivery apps
A.2 Disallow self-serve stations?
A.3 Plastic straws may be retained and provided as an accommodation A.4 Encourage bulk condiment dispensers rather than individual packets A.5 Online ordering for pickup/delivery must provide option to affirmatively opt in to choosing each accessory piece individually
A.6 Exceptions for instances of drive-through and food deliveries in which items like cup lids, lid plugs, hot sleeve cups may be offered to prevent spills or safely transport food A.7 For delivery orders, accessories allowed to prevent spills and deliver safely. 6/1/2023 1 year after accessories phase

9.15.110 B USE OF NON-COMPLIANT FOODWARE PROHIBITED
B.1 No sale or distribution of Prepared packaged by food providers (including City Facility Prepared Food Providers) in Cupertino using:

B.1.a Expanded Polystyene (EPS) foam
B.1.b Single-use plastics (even if accepted as recyclable) B.1.c Compostables with PFAS
Allow PFAS-free paper, wood, bamboo, or fiber-based compostable items B.1.d Bio-plastics ("compostable plastics")

9.15.120(G) Prepackaged food from outside the City exempted

9.15.120(I) Allow aluminum containers and foil (as exemption) B.2 Director of Public Works (or designee) to maintain list of suitable products and/or provide reference to an approved list
B.3 Exemption for food/beverages prepared and packaged outside of the City

9.15.110 C REUSABLE FOOD SERVICE WARE FOR DINING ON PREMISES C.1 Dine-in requires Reusables
C.1 Allowable: disposable paper food wrappers, sleeves, and bags; foil wrappers; paper napkins; paper tray and plate liners; and straws if meet requirements.

C.2 Condiments shall not be in single-service packets
C.3 Definition of on-premises as belonging to food provider or shared C.4 New building permits trigger condition of approval requiring dishwashing capacity to allow reusables on-premises.

C.4 New and renewed business licenses trigger condition of approval requiring dishwashing capacity to allow reusables on-premises.

C.5 Dine-in still allows nonreusable containers for leftovers.

C.6 Waiver/extension option for existing restaurants without dishwashing capacity

9.15.110 D SALE OR DISTRIBUTION OF NON-COMPLIANT FOODWARE PROHIBITED D.1 Ban sale of compostable plastic food service ware
Attachment C
Cupertino DRAFT PROPOSED Single-Use Plastics Ordinance
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D.1 Includes ban on sale of EPS foodware
D.2 Director may adopt or refrence a list of compliant products

9.15.120 A Exemptions available for unique packaging hardship, unused inventory, significant economic hardship, or extra time needed to comply
B Unique packaging hardship
C Unused inventory
D Significant economic hardship
E Needs additional time
F Method of applying for exemption with time limit of 1 year G Prepackaged food is exempt
H Food service ware that is entirely aluminum foil-based is exempt I Emergencies are exempt

9.15.125
A All food providers must keep records of purchase of single-use foodware showing compliance
B Records to be made available for inspection by the City C False or incomplete information is a violation
NEW SECTION 9.15.125 CONCERNING RECORDKEEPING AND INSPECTION

EXEMPTIONS
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Attachment D
Food Service Ware Price Comparison
This document contains data and graphics gathered and created by staff at the City of Mountain View in Fall 2021. Follow-up research by City of Cupertino staff showed current pricing largely unchanged. We thank the City of Mountain View for sharing this research work.

This document compares the typical per-item price range of commonly used disposable food service ware items. While this is not an exhaustive price survey, it provides preliminary insight into financial implications of the proposed food service ware regulations on food providers. While traditional plastic cups and containers are currently accepted for recycling in Cupertino, recycling markets for most of these common foodware markets are weak and they may end up contaminating the recycling if they are not empty and wiped clean. Transitioning these items to compostable, fiber-based materials or recyclable aluminum will reduce recycling contamination and landfilled waste. Proposed Single-Use Plastics Ordinance non-compliant items are shown in red and compliant in green.

Box-and-whisker plots divide the data into quartiles. The typical per-item price range is the middle two quartiles, 25th through 75th percentile values of all prices surveyed. The line inside the box is the median. The lines or “whiskers” above and below the bar show the maximum and minimum prices found. The data sets exclude statistical outliers. 614
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1. Rectangular Tray with Lid (approximately 9”x6”)
Black plastic trays with clear lids are a commonly used type of takeout food packaging. As shown, aluminum trays are a cost-effective compliant alternative for this type of container, with significant per-item savings over black plastic.

2. Large 9”x9” Hinged Container (“Clamshell”)
The median price for certified PFAS-free fiber clamshells is the same as that of plastic, though the typical price ranges differ. Compostable plastic is the most expensive option, so food providers currently using these items will save money by switching to compliant fiber-based alternatives.

Black plastic
w/clear lid
Certified PFAS-free
fiber tray w/lid
Aluminum tray
w/lid
Non-compliant
paper/fiber
Plastic “Compostable”
plastic
Certified PFASfree fiber
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3. Food Containers/Soup Cups (16 oz)
These products are often used to hold soups and other hot, liquid-based items for takeout orders. In this category, plastic containers were significantly cheaper than compliant alternatives, meaning food vendors will likely experience increased costs to comply with the proposed Single-Use Plastics Ordinance regulations.

4. Hot Beverage Cups (16 oz)
There are only two primary material types for hot beverage cups: paper that is not certified as PFAS-free, and certified PFAS-free paper or fiber. While certified options are slightly more expensive, many of the cheaper non-compliant products may no longer be allowed when California’s PFAS ban takes effect in 2023.

Non-compliant
paper/fiber
Certified PFASfree fiber
Plastic
Non-compliant
paper/fiber
Certified PFASfree paper/fiber
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5. Cold Beverage Cups (16 oz)
Cold cups are available in both plastic and fiber options. Under the proposed Single-Use Plastics Ordinance, clear plastic cups will no longer be allowed. Food providers are likely to encounter increased costs in transitioning cold cups to compliant fiber-based options unless they currently use compostable plastic.

Overall trends:
 The impacts of switching to compostable, certified PFAS-free or recyclable aluminum disposable food service ware is likely to be a mix of cost increases and cost savings, depending on the specific foodware item and compliant alternatives.  Compostable plastic is the most expensive option for many products. Businesses using compostable plastic can save money switching to compliant fiber items.  This research revealed large variation in price for the same products across different distributors, so food providers should obtain quotes from multiple distributors when searching for compliant food service ware items.  Confusing labelling and “greenwashing” of non-compliant plastic and fiber products makes it more complicated for food vendors to identify compliant products. For example, some petroleum-based plastic items are labelled “ecofriendly” since they use less plastics than similar products or contain recycled material, but they are not compliant with the proposed ordinance.

Certified PFASfree paper/fiber“Compostable”
plastic
Plastic
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CITY OF CUPERTINO
Agenda Item
22-10899 Agenda Date: 5/17/2022
Agenda #: 20.

Subject: Consideration of Municipal Code amendments to the Cupertino Municipal Code, Title 2 to add Chapter 2.96 and codify the Economic Development Committee (continued from May 3, 2022)

1. Conduct the first reading of Ordinance No. 22-2240; “An Ordinance of the City Council of the City of Cupertino Adding Chapter 2.96 of Title 2 (Administration and Personnel) to Codify the Economic Development Committee"

2. Find that the proposed actions are exempt from CEQA. /// Recommended Postponement:

Postponement to May 19, 2022 meeting
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CITY COUNCIL STAFF REPORT
Meeting: May 17, 2022
Subject
Consideration of Municipal Code amendments to the Cupertino Municipal Code, Title 2 to add Chapter 2.96 and codify the Economic Development Committee.

Recommended Action

1. Conduct the first reading of Ordinance No. ____ “An Ordinance of the City Council of the City of Cupertino Adding Chapter 2.96 of Title 2 (Administration and Personnel) to Codify the Economic Development Committee".

2. Find that the proposed actions are exempt from CEQA.

Discussion
The Economic Development Committee (EDC) has met informally for well over two decades to discuss items of importance pertinent to local businesses and to provide feedback to staff on business‐related City initiatives or projects.

As part of the FY 2021‐2022 City Work Program discussion, the City Council requested that the EDC be codified in the Municipal Code through an ordinance.

The proposed ordinance for the EDC has been drafted based on input from Council and staff research on economic development committees in other local cities.

Powers and Functions:

The powers and functions of the Committee shall be to serve in an advisory capacity to the City Council and to provide expertise and guidance on policy related to economic development. The Committee shall also actively promote Cupertino as a location of choice for current and prospective businesses.

To fulfill their mission, the Committee may involve itself in the following activities:

1. Make recommendations to City Council on a broad range of strategic matters broadly applicable to the City’s economic development goals; 619
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2. Serve as an ambassador to shed a positive light on the City by sharing economic development resources and information to prospective businesses and stakeholders, thus positioning the City as a location of choice; and

3. Encourage public/private partnerships to further the City’s economic development goals by identifying potential resources.

Membership:

As proposed, the membership of this new Committee would consist of five members, including elected officials, industry sector representatives, and key partners:

1. City Councilmember

2. City Councilmember

3. Technology Sector Representative

4. Retail/Small Business Representative

5. Hospitality/Tourism Sector Representative
Term:

Committee members would serve an initial term of four years, with a possibility to serve for an additional four years. Committee members would not serve for more than two consecutive terms.

Economic Development Committees/Commissions in Other Cities Staff conducted research on economic development committees in other cities in Santa Clara County and the local area. Out of the 18 other cities surveyed, five have active economic development commissions or committees that are subcommittees of Council.

Palo Alto is currently in the process of forming one. Details on the composition and purpose of the commissions or committees in these cities are below:

City Committee Composition Purpose
Mountain
View
Downtown
Committee
11 members
• Four (4) property owners
or downtown business
representatives
• Two (2) community-atlarge members who are
residents of Mountain
View
• Four (4) business-at-large
members with
representatives from:
- One (1) Downtown
Encourage economic
development specific to
the downtown area.
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Business Association
- One (1) Chamber of
Commerce
- Two (2) businesses
not in the Downtown.

San Jose Community and
Economic
Development
Committee
Five (5) Councilmembers Manage the growth and
change of the City of San
José in order to encourage
a strong economy; ensure
a diverse range of arts,
cultural, and
entertainment offerings;
and create and preserve
housing and healthy
neighborhoods. This
committee was previously
named the Driving a
Strong Economy
Committee.

Santa Clara Economic
Development,
Communication,
and Marketing
Committee
Four (4) Councilmembers The Economic
Development Committee
and the Marketing
Committee were
consolidated in 2019. This
Committee focuses
proactive economic
development and
effective communication,
as well as reviews the
City’s marketing and
branding strategies.

Fremont Economic
Development
Advisory
Commission
Nine (9) commissioners
• Five (5) representatives
from: Business, Resident;
Real Estate; Ohlone
Community College.
• Three (3) representatives
from Commercial /
Industrial sector.
• One (1) representative
from the Chamber of
Commerce.

Promotes and facilitates
economic development in
the City of Fremont and
enhances and supports
current businesses in the
City.

Milpitas Economic
Development
Seven (7) commissioners
• One (1) Councilmember
Advise the City Council
on business issues,
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and Trade
Commission
• Six (6) representatives
from:
- Chamber of
Commerce
- Real Estate
- Resident
- Milpitas Unified
School
District/Education
- Business
- Technology and
Trade
cultivate international
trade relationships, and
make recommendations
on the design,
development, and
implementation of
economic development in
the City of Milpitas.

Palo Alto In the process of hiring an ED Manager and in the planning stages to begin economic development meetings that are cohosted with the chamber, business owners, building owners, and the community.

Next Steps
City Council to review the proposed ordinance, provide feedback to staff, and conduct the first and second readings when appropriate. If approved, the Committee will convene once the members are appointed.

Sustainability Impact
No sustainability impact.

Fiscal Impact
While the EDC has not always met consistently in the past, this Ordinance will set a regular quarterly meeting schedule. With more consistency and structured functions, the EDC may require more staff time than in past years. However, this consistency and structure will be beneficial and worth the additional staff time costs. _____________________________________
Prepared by: Tina Kapoor, Economic Development Manager
Reviewed by: Chris Jensen, City Attorney
Dianne Thompson, Assistant City Manager
Katy Nomura, Deputy City Manager
Approved for Submission by: Jim Throop, City Manager
Attachments:

A – Draft Ordinance Adding Chapter 2.96 Economic Development Committee 622
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Ordinance No. __________ ATTACHMENT A
1 ORDINANCE NO. __________________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING CITY CODE TITLE 2
CHAPTER 2.96: ECONOMIC DEVELOPMENT COMMITTEE
The City Council of the City of Cupertino finds that:

1. The purpose of this Ordinance is to establish the Economic Development Committee (EDC).

2. The EDC has met informally for well over two decades to discuss items of importance pertinent to local businesses and to provide feedback to staff on business‐related City initiatives or projects. As part of the FY 2021‐2022 City Work Program discussion, the City Council requested that the EDC be codified in the Municipal Code through an ordinance.

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 to add Chapter 2.96 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. 623
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Ordinance No. __________ ATTACHMENT A
2 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 amendments to the Municipal Code would have 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.

INTRODUCED at a regular meeting of the Cupertino City Council on May 17, 2022, and ENACTED at a regular meeting of the Cupertino City Council on ______, 2022 by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:
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Ordinance No. __________ ATTACHMENT A
3 SIGNED:
______________________
Darcy Paul, Mayor
City of Cupertino
________________________
Date
ATTEST:
_______________________
Kirsten Squarcia, City Clerk
________________________
Date
APPROVED AS TO FORM:
_______________________
Christopher D. Jensen, City Attorney
________________________
Date
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Ordinance No. __________ ATTACHMENT A

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Chapter 2.96: Economic Development Committee
The sections of the Cupertino Municipal Code set forth below are amended or adopted as follows:

2.96.010 Established–Composition.

A. The Economic Development Committee of the City of Cupertino is established.

The Economic Development Committee (hereinafter referred to in this Chapter as "Committee") shall consist of five (5) members as follows:

1. City Councilmember

2. City Councilmember

3. Technology Sector Business Representative

4. Retail/Small Business Representative

5. Hospitality/Tourism Sector Representative
B. The Committee shall be comprised of two Council members. Three members shall be from key industry sectors – Technology, Retail, and Hospitality.

Committee Members shall be Cupertino residents or own a business or be currently employed at a business/organization located within the City of Cupertino.

C. None of these representatives shall be officials or employees of the City, nor cohabit with, as defined by law, nor be related by blood or marriage to any other member of the Committee, to the City Manager, or to any staff person(s) who may be assigned to assist this Committee.

D. Members of the Committee shall be appointed by the City Council.

2.96.020 Terms of Office. of Office.

A. Committee Members serve at the pleasure of the City Council. The term of office for Committee Members shall be four (4) years unless appointed by the City Council for a shorter term. All terms shall end on January 30 of the year the term is due to expire. No Committee Members shall serve more than two consecutive terms, except that a Committee Member may serve more than two consecutive terms if he or she has been appointed to the Committee to fill an unexpired term of less than two years.
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Ordinance No. __________ ATTACHMENT A

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B. The appointment, reappointment and rules governing incumbent members of the Committee are governed by the Resolution of the Cupertino City Council which governs advisory bodies.

2.96.030 Members–Vacancy or Removal.

Any Committee Member may be removed by a majority vote of the City Council. 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.

2.96.040 Chairperson.

The Committee shall elect its chairperson and vice chairperson from among its members [and shall appoint a secretary]. Terms of the chair and vice chair shall be for one year.

2.96.050 Meetings–Quorum.

A. The Committee shall hold regular meetings on a quarterly basis on and at the discretion of the Committee shall hold other meetings as may be necessary or expedient.

B. A majority of the Committee shall constitute a quorum for the purpose of transacting the business of the Committee.

C. A special meeting may be called at any time by the chairperson or by a majority of the Committee Members upon notice being given in advance in accordance with the provisions of the Ralph M. Brown Act or successor statute in effect at the time.

2.96.060 Majority Vote Required.

A majority vote of Committee Members present is required to approve a recommendation on any matter that is presented to the Committee that requires a vote.

2.96.070 Records.

The Committee shall keep an accurate record of its proceedings and transactions and shall render such reports to the City Council as may be required. These records shall be filed with the City Clerk.
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Ordinance No. __________ ATTACHMENT A

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2.96.080 Powers and Functions.

A. The powers and functions of the Committee shall be to serve in an advisory capacity to the City Council and to provide expertise and guidance on policy related to economic development. The Committee shall also actively promote Cupertino as a location of choice for current and prospective businesses.

B. To fulfill their mission, the Committee may involve itself in the following activities:

1. Make recommendations to the City Council on a broad range of strategic matters broadly applicable to the City’s economic development goals;

3. Encourage public/private partnerships to further the City’s economic development goals by identifying potential resources.

2.96.090 City Staff Assistance.

The 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 Economic Development Manager.

2.96.100 Compensation–Expenses.

Committee Members shall serve without compensation. Committee Members may be reimbursed for necessary expenses reasonably incurred by them while acting in their official capacity subject to the approval of the City Manager.

2.96.110 Procedural Rules.

The 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 kept on file with the Chairperson of the Committee, the Mayor, and the City Clerk, and a copy thereof shall be furnished to any person on request.
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2.96.120 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
22-10927 Agenda Date: 5/17/2022
Agenda #: 21.

Subject: Consider approval of the April 26 City Council minutes Approve the April 26 City Council minutes. /// Recommended Postponement: Postponement to May 19, 2022 meeting
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Tuesday, April 26, 2022

SPECIAL MEETING
At 7:00 p.m., Mayor Darcy Paul called the Special City Council Meeting to order in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue.

ROLL CALL

Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei (attended via teleconference) and Jon Robert Willey. Absent: None.

COMMISSION INTERVIEWS

1. Subject: Interview applicants for the unexpected Bicycle Pedestrian Commission vacancy
Recommended Action: Conduct interviews and make appointment to the Bicycle Pedestrian Commission with a term ending January 30, 2025 and make appointments for any alternates
Council conducted interviews for the Bicycle Pedestrian Commission.

Councilmembers asked questions and made comments.

Council unanimously consented to forego the scheduled break and interview candidates who had arrived early.

Council recessed from 8:30 p.m. to 8:43 p.m.

Council continued conducting interviews.

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City Council Minutes April 26, 2022
to each, with the top candidate scoring three points, the second candidate scoring two points, and the third scoring one point.

The points scoring tally was as follows:

Grace John: Moore (1), Wei (3), Willey (3), Chao (1), Paul (3) = 11 points Fari Aberg: Moore (2), Wei (1), Willey (2), Chao (3), Paul (2) = 10 points Richard Railton: Moore (3), Wei (2), Willey (1), Paul (1) = 7 points Ravi Kumar: Chao (2) = 2 points
Moore moved and Chao seconded to appoint Grace John to the Bicycle Pedestrian Commission with a term ending January 30, 2025; and appointed Fari Aberg as 1st Alternate and Richard Railton as 2nd Alternate.

Paul made a friendly amendment to direct staff to inform all applicants that there will be three Bicycle Pedestrian Commission terms expiring on January 30, 2023 and to encourage them to apply during the annual recruitment cycle if they are interested. (Moore and Chao accepted the friendly amendment).

The amended motion carried unanimously.

ADJOURNMENT
At 9:37 p.m., Mayor Paul adjourned the Special City Council Meeting. _______________________________
Lauren Sapudar, Deputy City Clerk
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CITY OF CUPERTINO
Agenda Item
22-10928 Agenda Date: 5/17/2022
Agenda #: 22.

Subject: Consider approval of the April 28 City Council minutes Approve the April 28 City Council minutes. /// Recommended Postponement: Postponement to May 19, 2022 meeting
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Thursday, April 28, 2022

SPECIAL MEETING
At 6:00 p.m., Mayor Darcy Paul called the Special City Council Meeting to order in City Hall Conference Room C, 10300 Torre Avenue.

ROLL CALL

Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei, and Councilmember Jon Robert Willey.

In open session before Council convened in closed session, the Mayor called for any members of the public who were present to provide comment regarding any item on the agenda. No members of the public requested to speak.

CLOSED SESSION

1. Subject: Conference with Legal Counsel - Anticipated Litigation. Significant exposure to litigation pursuant to Government Code § 54956.9(d) (two cases) Council conducted the Conference with Legal Counsel - Anticipated Litigation.

Significant exposure to litigation pursuant to Government Code § 54956.9(d) (two cases).

No reportable action was taken.

OPEN SESSION

REPORT REGARDING CLOSED SESSION
Mayor Paul conducted the report regarding closed session.

ADJOURNMENT
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City Council Minutes April 28, 2022
At 8:06 p.m., Mayor Paul adjourned the Special City Council Meeting. _________________________
Kirsten Squarcia, City Clerk
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CITY OF CUPERTINO
Agenda Item
22-10929 Agenda Date: 5/17/2022
Agenda #: 23.

Subject: Consider approval of the May 2 City Council minutes Approve the May 2 City Council minutes. /// Recommended Postponement: Postponement to May 19, 2022 meeting
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Monday, May 2, 2022

SPECIAL MEETING
At 7:30 a.m., Mayor Darcy Paul called the Special City Council Meeting to order in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue.

ROLL CALL

Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei, and Jon Robert Willey. Absent: None.

CLOSED SESSION

1. Subject: Public Employee Performance Evaluation (Gov. Code § 54957(b)(1)); Title: City Manager
Council conducted the Public Employee Performance Evaluation (Gov. Code § 54957(b)(1)); Title: City Manager
No reportable action was taken.

OPEN SESSION

REPORT REGARDING CLOSED SESSION
Mayor Paul conducted the open session report regarding closed session.

ADJOURNMENT
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City Council Minutes May 2, 2022
At 9:03 a.m., Mayor Paul adjourned the Special City Council Meeting. _______________________________
Kirsten Squarcia, City Clerk
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CITY OF CUPERTINO
Agenda Item
22-10930 Agenda Date: 5/17/2022
Agenda #: 24.

Subject: Consider approval of the May 3 City Council minutes Approve the May 3 City Council minutes. /// Recommended Postponement: Postponement to May 19, 2022 meeting
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Tuesday, May 3, 2022

SPECIAL MEETING
At 5:30 p.m., Mayor Darcy Paul called the Special City Council Meeting to order in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and via teleconference.

ROLL CALL

Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei, and Jon Robert Willey. Absent: None.

STUDY SESSION

1. Subject: Consider a Study Session on the Capital Improvements Program (CIP,) including review of the five-year CIP (Fiscal Year (FY) 22-27) and new proposed projects for FY 22-23
Recommended Action: Receive report on the five-year CIP (FY 22-27,) including new proposed projects for FY 22-23, requesting comments and direction Presenter: Susan Michael, Capital Improvements Program Manager Written Communications for this item included a staff presentation and emails to Council.

Capital Improvements Program Manager Susan Michael gave a presentation.

Mayor Paul opened the public comment period and the following people spoke.

Peggy Griffin supported adding Torre Ave. to the properties list, a Memorial Park Master Plan, a design plan for Lawrence Mitty, and addressing City Hall with public input.

Housing Commissioner Tessa Parish (representing self) was concerned about City parking, the BBF Splash Pad cost, and use of funds for City Hall, and supported public input. 640
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Jean Bedord supported starting the funding and planning process for the City Hall renovation replacement and library parking garage project.

Lisa Warren supported alternative options for the Blackberry Farm Splash Pad and the City Hall renovation and studying usage requirements.

Housing Commissioner Connie Cunningham (representing self) supported prioritizing the new City Hall study and was concerned about delaying a seismic retrofit and safety.

Jennifer Griffin supported the CIP report and prioritizing the Stocklmeir House as a farming historical site.

Larry Dean supported keeping the Carmen Road Bridge Project on the list.

Heather Dean supported prioritizing a City Hall rebuild and was concerned about employee safety and parking deficiencies.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Paul moved and Chao seconded that Council support putting forward 10455 Torre Avenue upgrades in the CIP to allow for office space use for City Hall employees. With regard to City Hall, Paul further moved that Council: provide direction to staff to reduce above-surface parking impacts; provide direction to staff to be conscious of costs and to provide a plan for cost-auditing; provide direction to staff that the City complete the process for securing a procurement officer for an auditing mechanism before proceeding with further estimates. Further, Paul moved that Council direct staff, in future years, to refer to the Planning Commission for input on the proposed CIP projects in addition to an assessment of conformance with the General Plan. Further, Paul moved that Council direct staff to inform Council and the public of what the funds for the Westport project park mitigation fees are being allocated towards. Further, Paul moved that Council direct staff to return to the public with a study session on Memorial Park consistent with or at least addressing the recommendations of the Parks & Recreation Master Plan. Council did not vote on this motion.

Wei moved and Chao seconded to continue the Study Session to the Regular Meeting. The motion carried unanimously.

ADJOURNMENT
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At 6:44 p.m., Mayor Paul adjourned the Special City Council Meeting.

REGULAR MEETING
At 6:50 p.m., Mayor Darcy Paul called the Regular City Council Meeting to order and led the Pledge of Allegiance in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and via teleconference.

ROLL CALL

Present: Mayor Darcy Paul, Vice Mayor Liang Chao, and Councilmembers Kitty Moore, Hung Wei, and Jon Robert Willey. Absent: None.

CEREMONIAL MATTERS AND PRESENTATIONS

1. Subject: Proclamations honoring musicians from two Cupertino High Schools (Homestead-Cupertino Symphony Orchestra and Homestead Symphonic Wind Ensemble) for their performances at the Washington D.C. International Music Festival on April 16 and 17, 2022
Recommended Action: Present proclamations honoring musicians from two Cupertino High Schools (Homestead-Cupertino Symphony Orchestra and Homestead Symphonic Wind Ensemble) for their performances at the Washington D.C. International Music Festival on April 16 and 17, 2022
Homestead High School Associate Director of Bands Benjamin Scharf received the proclamations on behalf of the Homestead-Cupertino Symphony Orchestra and Homestead Symphonic Wind Ensemble.

Mayor Paul presented the proclamations honoring musicians from two Cupertino High Schools (Homestead-Cupertino Symphony Orchestra and Homestead Symphonic Wind Ensemble) for their performances at the Washington D.C. International Music Festival on April 16 and 17, 2022.

2. Subject: Proclamation commemorating the Eid al-Fitr holiday, honoring the end of Ramadan for members of the Islamic faith and celebrating religious freedoms for every member of the Cupertino community
Recommended Action: Present proclamation commemorating the Eid al-Fitr holiday, honoring the end of Ramadan for members of the Islamic faith and celebrating religious freedoms for every member of the Cupertino community
Written communication for this item included a desk item Eid al-Fitr Proclamation to the 642
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West Valley Muslim Association.

Cupertino resident Leila Qureishi accepted the proclamations on behalf of the community.

Mayor Paul presented the proclamations commemorating the Eid al-Fitr holiday, honoring the end of Ramadan for members of the Islamic faith and celebrating religious freedoms for every member of the Cupertino community.

POSTPONEMENTS AND ORDERS OF THE DAY
Moore moved and Willey seconded to move the Special Meeting Study Session Item 1 that was continued from 5:30 PM to directly after the Consent Calendar; and move Regular Meeting Agenda Item 26 before Item 25. The motion carried unanimously.

ORAL COMMUNICATIONS
Written comments for this item included an email from Kiran Choudhry regarding the Planning Commission Housing Element process and emails from Jean Bedord regarding a Mercury News Letter to the Editor on the City Council and fiscal responsibility.

Lisa Warren supported renaming Lawrence-Mitty Park, a housing audit, a study of bike lanes and treatments prior to additional funding, and public input for BBF Splash Pad alternatives.

Peggy Griffin was concerned about the square footage of The Rise 2022 project when compared to the 2018 Vallco SB-35 project. (Submitted written comments).

Housing Commissioner Connie Cunningham (representing self) was concerned about the Housing Element displacing people from their homes and supported revising the report.

Jennifer Griffin was concerned about AB 1120 to allow housing on commercial site tech parks and office buildings ministerially, with no CEQA, and added density bonus.

Rick Kitson (representing self) generally discussed the Chamber of Commerce and supported a written agreement of expectations for anyone doing business with the City.

REPORTS BY COUNCIL AND STAFF (10 minutes)

3. Subject: Brief reports on councilmember activities and brief announcements Recommended Action: Receive brief reports on councilmember activities and brief announcements
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Council received brief reports on councilmember activities and brief announcements.

4. Subject: Report on Committee assignments
Recommended Action: Report on Committee assignments
Councilmembers highlighted the activities of their various committees.

5. Subject: City Manager update
Recommended Action: Receive City Manager update on City business Council received the City Manager update on City business.

CONSENT CALENDAR (Items 6-22)
Willey moved and Moore seconded to approve Items 6, 7 as amended, and 11 on the Consent Calendar. Ayes: Paul, Chao, Moore, Wei, and Willey. Noes: None. Abstain: None. Absent: None.

Moore moved and Willey seconded to pull Items 8, 9, 10, and 22 for discussion and table Items 12 through 21 to the City Council meeting on May 17, 2022. Willey withdrew his second to the motion for further discussion on Items 12 through 21. Council did not vote on this item.

Moore moved and Willey seconded to pull Items 8, 9, 10, and 22 for discussion and table Items 12 through 21 for continuation to the Regular City Council Meeting on May 17, 2022. Ayes: Paul, Chao, Moore, Wei, and Willey. Noes: None. Abstain: None. Absent: None.

Council recessed from 7:59 p.m. to 8:05 p.m.

6. Subject: Approve the April 19 City Council minutes
Recommended Action: Approve the April 19 City Council minutes Council approved this item on the Consent Calendar.

7. Subject: Approve the April 21 City Council minutes
Recommended Action: Approve the April 21 City Council minutes Written communications for this item included an Amended Attachment A - (Redline) Draft Minutes
Council approved this item on the Consent Calendar as amended. 644
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8. Subject: Consider adopting a resolution authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period May 3, 2022 through June 2, 2022 pursuant to the Brown Act, as amended by AB 361 Recommended Action: Adopt Resolution No. 22-050 authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period May 3, 2022 through June 2, 2022 pursuant to the Brown Act, as amended by AB 361 Written communications for this item included emails to Council.

City Clerk Kirsten Squarcia reviewed the staff report.

Mayor Paul opened the public comment period.

Peggy Griffin supported permanently conducting hybrid meetings for meetings held in Community Hall and hybrid or remote for meetings held elsewhere.

Lisa Warren supported in-person and hybrid meetings for City Council and Planning Commission and in-person-only for certain commissions and committees.

Rhoda Fry supported an option for in-person meetings as well as a remote option for meetings.

Jennifer Griffin supported hybrid meetings and maintaining an in-person alternative.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Wei moved and Moore seconded to adopt Resolution No. 22-050 authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period May 3, 2022 through June 2, 2022 pursuant to the Brown Act, as amended by AB 361. The motion carried unanimously.

9. Subject: Consider a donation from Marilyn Francesco for a memorial plaque to be placed on a bench in Memorial Park, in memory of Robin Andy.

Recommended Action: Authorize the following regarding a plaque in memory of Robin Andy.
1) Acceptance of the plaque donation
2) Wording of the plaque
3) Installation on a designated bench at Memorial Park
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Parks and Recreation Director Joanne Magrini reviewed the staff report.

Mayor Paul opened the public comment period.

Rhoda Fry supported Council further discussing donating memorial plaques and benches.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Paul moved and Willey seconded that Council direct staff to bring back to Council proposed policy and procedures for considering requests for memorial plaques on City public property prior to consideration of further action on the current item, and that the current and any similar pending proposal be reconsidered subsequent to the results of the consideration by Council of proposed policy and procedures for memorial plaques.

Council did not vote on this motion.

Chao moved and Moore seconded a substitute motion that Council direct staff to bring back to Council proposed policy and procedures for considering requests for memorial plaques on City public property considering requests for donation of objects on City public property, including potential locations for memorial plaques, prior to consideration of further action on the current item, and that the current and any similar pending proposal be reconsidered subsequent to the results of the consideration by Council of proposed policy and procedures for memorial plaques.

Paul made a friendly amendment to the substitute motion: that Council direct staff to bring back to Council proposed policy and procedures, including historical information regarding similar types of donations to the City in the past, for considering requests for donation of objects on City public property, including potential locations for memorial plaques, prior to consideration of further action on the current item, and that the current and any similar pending proposal be re-considered subsequent to the results of the consideration by Council of proposed policy and procedures for memorial plaques.

Chao made a friendly amendment to the substitute motion: that Council direct staff to bring back to Council proposed policy and procedures, including historical information regarding similar types of donations to the City in the past, for considering requests for donation of objects on City public property, including potential locations for memorial plaques, prior to consideration of further action on the current item, and that the current and any similar pending proposal be re-considered subsequent to the results of the consideration by Council of proposed policy and procedures for memorial plaques. 646
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Further, that staff bring back to Council recommended policies and procedures regarding movement of donated objects on City property.

Chao and Moore accepted the friendly amendments to the substitute motion.

The amended substitute motion carried unanimously.

Final motion summary:

Chao moved and Moore seconded to direct staff to bring back to Council proposed policy and procedures, including historical information regarding similar types of donations to the City in the past, for considering requests for donation of objects on City public property, including potential locations for memorial plaques, prior to consideration of further action on the current item, and that the current and any similar pending proposal be re-considered subsequent to the results of the consideration by Council of proposed policy and procedures for memorial plaques. Further, that staff bring back to Council recommended policies and procedures regarding movement of donated objects on City property. The amended substitute motion carried unanimously.

Council recessed from 9:15 p.m. to 9:21 p.m.

10. Subject: Consider the Fiscal Year (FY) 2022-23 Community Development Block Grant (CDBG) Program and Below Market Rate (BMR) Affordable Housing Fund (AHF) funding allocations.

Recommended Action: Authorize the City Manager to execute FY 2022-23 CDBG and BMR AHF funding agreements
Written Communications for this item included a staff report.

Housing Manager Kerri Heusler gave a presentation.

Mayor Paul opened the public comment period.

Peggy Griffin asked about land acquisition allowances for affordable housing and protections for renters.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Moore moved and Chao seconded to authorize the City Manager to execute FY 2022-23 CDBG and BMR AHF funding agreements. The motion carried unanimously. 647
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11. Subject: Consideration of Amended and Restated Agreement with the County of Santa Clara for Weed Abatement Services
Recommended Action: Authorize the City Manager to execute an Amended and Restated Agreement with the County of Santa Clara to continue the Weed Abatement Program in Cupertino
Council approved this item on the Consent Calendar.

12. Subject: Consider accepting Accounts Payable for the period ending February 7, 2022 Recommended Action: Adopt Resolution No. 22-036 accepting Accounts Payable for the period ending February 7, 2022
Council continued this item to the May 17, 2022 City Council meeting.

13. Subject: Consider accepting Accounts Payable for the period ending February 14, 2022 Recommended Action: Adopt Resolution No. 22-037 accepting Accounts Payable for the period ending February 14, 2022
Council continued this item to the May 17, 2022 City Council meeting.

14. Subject: Consider accepting Accounts Payable for the period ending February 21, 2022 Recommended Action: Adopt Resolution No. 22-038 accepting Accounts Payable for the period ending February 21, 2022
Council continued this item to the May 17, 2022 City Council meeting.

15. Subject: Consider accepting Accounts Payable for the period ending February 22, 2022 MISC
Recommended Action: Adopt Resolution No. 22-039 accepting Accounts Payable for the period ending February 22, 2022 MISC
Council continued this item to the May 17, 2022 City Council meeting.

16. Subject: Consider accepting Accounts Payable for the period ending February 28, 2022 Recommended Action: Adopt Resolution No. 22-040 accepting Accounts Payable for the period ending February 28, 2022
Council continued this item to the May 17, 2022 City Council meeting.

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Recommended Action: Adopt Resolution No. 22-041 accepting Accounts Payable for the period ending March 7, 2022
Council continued this item to the May 17, 2022 City Council meeting.

18. Subject: Consider accepting Accounts Payable for the period ending March 14, 2022 Recommended Action: Adopt Resolution No. 22-042 accepting Accounts Payable for the period ending March 14, 2022
Council continued this item to the May 17, 2022 City Council meeting.

19. Subject: Consider accepting Accounts Payable for the period ending March 21, 2022 Recommended Action: Adopt Resolution No. 22-043 accepting Accounts Payable for the period ending March 21, 2022
Council continued this item to the May 17, 2022 City Council meeting.

20. Subject: Consider accepting Accounts Payable for the period ending March 28, 2022 Recommended Action: Adopt Resolution No. 22-044 accepting Accounts Payable for the period ending March 28, 2022
Council continued this item to the May 17, 2022 City Council meeting.

21. Subject: Consider accepting Accounts Payable for the period ending March 28, 2022 MISC
Recommended Action: Adopt Resolution No. 22-045 accepting Accounts Payable for the period ending March 28, 2022 MISC
Council continued this item to the May 17, 2022 City Council meeting.

22. Subject: Consider proposed resolutions for submission to the United States Conference of Mayors Annual Meeting held from June 3-6, 2022
Recommended Action: Approve proposed resolutions for submission to the United States Conference of Mayors Annual Meeting held from June 3-6, 2022 Mayor Paul read a statement. (Submitted written comments).

Mayor Paul opened the public comment period.

Lisa Warren supported Mayor Paul’s statement and approval of the item. 649
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Peggy Griffin supported Mayor Paul’s statement and approval of the item.

Jennifer Griffin supported Mayor Paul’s statement and was concerned about loss of local control.

Mayor Paul closed the public comment period.

Councilmembers asked questions and made comments.

Paul moved and Willey seconded to approve proposed resolutions for submission to the United States Conference of Mayors Annual Meeting held from June 3-6, 2022. The motion carried unanimously.

Council recessed from 10:26 p.m. to 10:31 p.m.

STUDY SESSION – CONTINUED FROM SPECIAL MEETING AT 5:30 PM Council continued the hearing, consideration, deliberation, and decisions for Item 1 (Study Session) on the Tuesday, May 3, 2022 City Council Special Meeting agenda. The public comment period remained closed.

1. Subject: Consider a Study Session on the Capital Improvements Program (CIP) including review of the five-year CIP (Fiscal Year (FY) 22-27) and new proposed projects for FY 22-23
Recommended Action: Receive report on the five-year CIP (FY 22-27) including new proposed projects for FY 22-23, requesting comments and direction Chao moved and Willey seconded a substitute motion:
 City Hall Related:
o Keep the description of the CY21-22 for “City Hall and Community Hall Improvements - Programming and Feasibility” until a separate agenda item is brought forward for an update and any request to modify the scope of the project.
 Provide information on other public buildings that’s 30 years or older and whether they have re-built it or only did earthquake retrofit. o Keep the description of the CY21-22 for “10455 Torre Avenue Improvements” and bring it to the Council to get direction on the long-term use of this facility before finalizing the programming and planning
 Memorial Park:
o Prioritize Memorial Park Master Plan with a process “to obtain community input and consensus will assist in formulating plans to renovate portions of 650
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the park including parking requirements and upgrades for surrounding facilities”, as specified in FY19-20 CIP plan in order to comply with the Parks and Rec Master Plan approved by the City Council.
o Postpone the “Memorial Park – Pond Repurposing - $3M “until the Memorial Park Master Plan is complete
o For this item “Memorial Park – Amphitheater Improvements - $1.15M”, it should first come to the Council agenda with proposed changes to seek Council direction and community input
 Parks and Rec Master Plan related => get input from Parks and Rec Commission next year
o Remove Major Recreational Facilities item (until the financing options of other unfunded projects are analyzed)
o Remove Splash pad from Blackberry Farm project in order to comply with the Parks and Rec Master Plan to consider geographical diversity for water play areas.
 Items to edit:
o Consider either painted bike lane or bollards as separators on De Anza and provide options for the Bike & Ped and City Council to consider  Items Added:
o add one item for funding for amenities for dog parks, such as fence or water dish, as new locations are identified.
o Include Bollinger bike path improvement due to pedestrian accident and death (with staff recommendation)
Willey requested modifications to the substitute motion for use of funds for Memorial Park - Pond Repurposing and receive input from the Bicycle Pedestrian Commission for Bollinger Road Improvements. (Chao declined the modifications).

Chao made a friendly amendment to her substitute motion:
 More items added
 EOC - examine the effects of the option of locating the EOC in allocation other than the City Hall
 Bring back more detailed cost estimates of Carmen Bridge project (Willey accepted the friendly amendment to the substitute motion).

Council did not vote on the substitute motion.

Paul moved and Chao seconded to bring this item back based upon the comments that Council provided this evening to a date certain at the May 17, 2022 City Council meeting.

The motion carried unanimously.

Moore moved and Wei seconded to continue Items 23 through 26 (as reordered with Item 26 651
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before Item 25) to the May 17, 2022 City Council meeting. The motion carried unanimously.

SECOND READING OF ORDINANCES - None

PUBLIC HEARINGS

23. Subject: Consider the Fiscal Year (FY) 2022-23 Fee Schedule Update (Continued from April 19, 2022)
Recommended Action: Adopt Resolution No. 22-049 approving FY 2022-23 Fee Schedule A, B, C, D and E effective July 1, 2022
Presenter: Thomas Leung, Senior Management Analyst
Written Communications for this item included a staff presentation, written comments by City Attorney Chris Jensen and an email to Council.

Council continued this item to the May 17, 2022 City Council meeting.

ORDINANCES AND ACTION ITEMS

24. Subject: Consider conducting the first reading of an Ordinance related to regulation of single-use plastic foodware and single-use carryout bags (continued from April 19, 2022) Recommended Action: Conduct the first reading of Ordinance No. 22-2239: “An Ordinance of the City Council of the City of Cupertino amending City Code to change the name of section 9.15, adopt new sections 9.15.090 and 9.15.125, and amend sections

9.15.100, 9.15.110, 9.15.120, 9.15.130, 9.17.130, and 9.17.140 to regulate the use of single-use food service ware by food providers, regulate sale of single-use food service ware and expanded polystyrene foam coolers, and regulate single-use carryout bags” (Attachment A), which includes a finding that adoption of the Ordinance is exempt from the California Environmental Quality Act (CEQA.)
Presenter: Ursula Syrova, Environmental Programs Manager Written Communications for this item included a staff presentation.

Council continued this item to the May 17, 2022 City Council meeting.

As noted under Postponements and Orders of the Day, the agenda was reordered to place Item 26 before Item 25.

26. Subject: Consider accepting Accounts Payable for the period ending December 20, 2021 Recommended Action: Adopt Resolution No. 22-015 accepting Accounts Payable for the period ending December 20, 2021
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Presenter: Katy Nomura, Deputy City Manager
Written Communications for this item included a staff presentation, Accounts Payable Report Ending December 20, 2021 - I Love Cupertino Invoices Desk Item, emails to Council, and written comments by Councilmember Moore.

Council continued this item to the May 17, 2022 City Council meeting.

25. Subject: Consideration of Municipal Code amendments to the Cupertino Municipal Code, Title 2 to add Chapter 2.96 and codify the Economic Development Committee (continued from April 19, 2022)
Recommended Action: 1. Conduct the first reading of Ordinance No. 22-2240; “An Ordinance of the City Council of the City of Cupertino Adding Chapter 2.96 of Title 2 (Administration and Personnel) to Codify the Economic Development Committee"

2. Find that the proposed actions are exempt from CEQA
Presenter: Tina Kapoor, Economic Development Manager
Written Communications for this item included a staff presentation.

Council continued this item to the May 17, 2022 City Council meeting.

27. Subject: Consideration of a City Council summer recess and cancellation of meeting(s) Recommended Action: Consider a City Council summer recess and cancel any meetings
Presenter: Kirsten Squarcia, City Clerk
City Clerk Kirsten Squarcia reviewed the staff report.

Mayor Paul opened the public comment period and, seeing no one, closed the public comment period.

Councilmembers asked questions and made comments.

Paul moved and Chao seconded to cancel the August 2, 2022 meeting.

Paul modified his motion to cancel the August 2, 2022 and July 5, 2022 Regular Meetings and add a special meeting on July 7, 2022. (Chao accepted the modification). The modified motion carried unanimously.

ORAL COMMUNICATIONS - CONTINUED (As necessary) – None
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COUNCIL AND STAFF COMMENTS AND FUTURE AGENDA ITEMS
Council did not hear this item.

ADJOURNMENT
At 11:53 p.m., Mayor Paul adjourned the Regular City Council Meeting to May 17, 2022. _________________________
Kirsten Squarcia City Clerk
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CITY OF CUPERTINO
Agenda Item
22-10931 Agenda Date: 5/17/2022
Agenda #: 25.

Subject: Consider setting a hearing date to declare brush with potential fire hazard a public nuisance and for objections to proposed removal through the Cupertino Brush Abatement Program WUI (Wildland-Urban Interface Fire Area); adopting a resolution declaring properties as having potential fire hazards from brush and authorizing removal
Adopt Resolution No. 22-055 declaring properties as having potential fire hazards from brush; and set a hearing date of June 21, 2022 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal. /// Recommended Postponement: Postponement to May 19, 2022 meeting
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1 CITY COUNCIL STAFF REPORT
Meeting: May 17, 2022
Subject
Consider setting a hearing date of June 21, 2022 to declare brush with potential fire hazard a public nuisance and for objections to proposed removal through the Cupertino Brush Abatement Program (Wildland-Urban Interface Fire Area); and consider adopting a resolution declaring properties as having potential fire hazards from brush and authorizing removal.

Recommended Action
Adopt Resolution No 22-___ declaring properties as having potential fire hazards from brush; and set a hearing date of June 21, 2022 to declare brush with potential fire hazard a public nuisance and to hear objections to proposed removal.

Discussion
The Cupertino Brush Abatement Program is a separate program from the County Weed Abatement Program that works to protect the City from wildfire risk by reducing potential fuel, such as brush, for hillside areas. This program is managed by the Santa Clara County Fire Department. Cupertino Municipal Code Section 16.40.200 requires property owners in the locally adopted Wildland-Urban Interface Fire Area (WUI) to maintain effective defensible space by removing brush, flammable vegetation and combustible growth when required by the fire code official due to steepness of terrain or other conditions. All properties in the WUI area are subject to the requirements of the Brush Abatement Program. It also authorizes the County to remove the brush if the property owner does not and to recover the cost of abatement.

In February of each year, homeowners are reminded that they must remove native brush and vegetation from around their home to create defensible space. The brush abatement program entails inspections of hillside properties by fire crews beginning early April each year. If properties are found to not be in compliance with the regulations found in the California Fire Code relative to vegetation clearance, the property owners are given notice of the violation. If compliance is still not achieved by approximately the end of June each year, a contractor is authorized to perform the necessary work. The costs associated with the abatement work are then placed on the property tax bill for that parcel. 656
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Sustainability Impact
None.

Fiscal Impact
None.
_____________________________________
Prepared by: Kirsten Squarcia, City Clerk
Reviewed by: Dianne Thompson, Assistant City Manager
Attachments:

A - Draft Resolution
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RESOLUTION NO. 22-

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

DECLARING PROPERTIES AS HAVING POTENTIAL FIRE HAZARDS

FROM BRUSH AND SETTING A PUBLIC HEARING TO DECLARE A

PUBLIC NUISANCE AND FOR OBJECTIONS TO PROPOSED REMOVAL
WHEREAS, brush is growing in the City of Cupertino upon certain streets, sidewalks, highways, roads and private property; and
WHEREAS, said brush may attain such growth as to become a fire menace or which are otherwise noxious or dangerous; and
WHEREAS, said brush appears to be a public nuisance;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino does hereby declare:

1. That said brush does now appear to be a public nuisance and potential fire hazard;

2. That said condition and potential fire hazard exists upon all of the streets, sidewalks, highways, roads, and private property more particularly described by common names or by reference to the tract, block, lot, code area, and parcel number on the report to be provided by the Santa Clara County Fire Department;

3. That the 21st day of June, 2022, at the hour of 6:45 p.m., or as soon thereafter as the matter can be heard, in the Council Chamber in the Community Hall, City of Cupertino and via teleconference, with details on how to attend the meeting appearing on the City Council agenda for that date, are hereby set as the time and place to determine whether the condition is a public nuisance and where all property owners having any objections to the proposed removal of such brush may be heard;

4. That the Santa Clara County Fire Marshal is hereby designated and ordered as the person to give notice of the adoption of this resolution in the manner and form provided in Section 16.40.200 of the Cupertino Municipal Code. 658
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 17th day of May, 2022 by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Darcy Paul, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Kirsten Squarcia, City Clerk
________________________
Date
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CITY OF CUPERTINO
Agenda Item
22-10932 Agenda Date: 5/17/2022
Agenda #: 26.

Subject: Consider setting a voluntary campaign expenditure limit of $34,470 for the November 8, 2022 City Council election
Adopt the Resolution No. 22-056 setting a voluntary campaign expenditure limit of $34,470 for the November 8, 2022 City Council election.
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Meeting: May 17, 2022
Subject
Set a voluntary campaign expenditure limit of $34,470 for the November 8, 2022 City Council election.

Recommended Action
Adopt the draft resolution setting a voluntary campaign expenditure limit of $34,470 for the November 8, 2022 City Council election.

Discussion
Voluntary expenditure limits enable both candidates and officeholders to spend less time on fundraising and more time communicating issues of importance to voters and constituents. Beginning in 1997, the City Council set a voluntary campaign expenditure limit of $15,000. In later years this amount was adjusted because of increases in postage costs or when the population was increased through annexations.

A General Municipal Election will be held Tuesday, November 8, 2022 to fill three City Council seats. If Council wishes to establish a limit for the 2022 election, it would be voluntary, is not required, and would have no force of law. The candidate decision of whether to accept the ceiling is made at the time of filing the nomination papers.

Candidates who agree to voluntarily limit campaign expenditures receive a diamond designation next to their name in the official voter’s pamphlet.

Campaign expenditures include allocations for mailing or distribution of campaign literature, publications in broadcast, print or electronic media, telephone banks, professional services, overhead expenditures, and campaign fundraising. The cost of printing and translating Candidate Statements shall not be counted against the voluntary expenditure ceiling.
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Staff recommends an increase of $4,470 to the voluntary expenditure limit set in 2020.

The escalated amount is based on the U.S. Bureau of Labor Statistics Consumer Price Index (CPI) which measures increases in the cost of paper, printing, and other goods and services. The change in the CPI (5.2%) is multiplied by the current number of registered Cupertino voters (32,766), as determined by the State’s Report of Registration, and rounded up.

ELECTION YEAR VOLUNTARY

EXPENDITURE LIMIT
1997 $15,000
1999 $20,000
2001 $20,000
2003 $20,000
2005 $26,000
2007 $26,500
2008 Special Election $26,500
2009 $28,000
2011 $28,000
2014 $28,000
2016 $33,000
2018 $29,000
2020 $30,000
2022 $34,470
Sustainability Impact
None
Fiscal Impact
None
_____________________________________
Prepared by: Kirsten Squarcia, City Clerk
Approved for Submission by: Dianne Thompson, Assistant City Manager Attachments:

A – Draft Resolution
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RESOLUTION NO. 22-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING A VOLUNTARY CAMPAIGN EXPENDITURE LIMIT OF $34,470 FOR THE NOVEMBER 8, 2022 CITY COUNCIL ELECTION
WHEREAS, the City Council adopted Resolution No. 9854 establishing a voluntary campaign expenditure limit for the 1997 City Council election in order to allow both candidates and officeholders to spend a lesser proportion of their time on fundraising and a greater proportion of their time communicating issues of importance to voters and constituents.

WHEREAS, the City Council has adopted a voluntary campaign expenditure limit each Cupertino election year since 1997, the most recent being Resolution No. 20-041 which established a voluntary campaign expenditure limit of $30,000 for the November 2020 election.

WHEREAS, on November 8, 2022, a General Municipal Election will be held to fill vacant Council seats, and the City Council wishes to apply a voluntary campaign expenditure limit of $34,470 to that election.

NOW, THEREFORE, BE IT RESOLVED:
1) The voluntary expenditure limit for the November 8, 2022 Municipal General Election shall be $34,470.
2) Any non-monetary contribution is deemed to be a campaign expenditure made by the receiving committee on the date of receipt, and it counts against the voluntary expenditure limits established by this resolution if an expenditure for equivalent goods or services would have been a campaign expenditure described in Attachment A. The amount of the expenditure shall be the fair market value of the contribution on the date of receipt. 3) In the event that any candidate for City Council wishes to abide by the campaign contribution limit requested by the City Council, they may file with the City Clerk a written notice of their intent to limit their campaign expenditures to $34,470 for the 2022 election, and such intent will be indicated in the official voter’s pamphlet by a black diamond next to their name.
4) The cost of printing and translating Candidate Statements shall not be counted against the voluntary expenditure cap of $34,470.
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5) The provisions of this resolution have no force of law.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 17th day of May, 2022, by the following vote:

Vote Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
___________________ ________
Darcy Paul, Mayor
City of Cupertino
_________________________
Date
ATTEST:
_________________________________
Kirsten Squarcia, City Clerk
_________________________
Date
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ATTACHMENT A
(Regulations of the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations)
§ 18540. Voluntary Expenditure Ceilings.
(a) For purposes of Government Code section 85400, campaign expenditures shall be allocated to primary, general, special, or runoff elections as follows:
(1) Expenditures related to mailing or distribution of campaign literature, signs, buttons, bumper stickers and similar items, shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditures were made, to the election held on that date.
(2) Expenditures related to publications in broadcast, print or electronic media shall be allocated to the next election following the date(s) specified in the contract for broadcast, publication, or dissemination or, if the election is held on the date specified for publication, broadcast, or dissemination, to the election held on that date. (3) Expenditures related to telephone banks, including costs of design and operation, costs of installing or renting telephone lines and equipment, toll charges, personnel costs, rental of office space, and associated consultants' fees, shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditures were made, to the election held on that date. (4) Expenditures on professional services, including fees and costs of campaign consultants and pollsters, shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditure was made, to the election held on that date. In the event that a contract for professional services 665
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allocates specific fees and costs to particular elections, the terms of the contract will govern allocation of expenditures to each election. If a contract provides for a bonus payment should the candidate win a particular election, the bonus payment is an expense of the election whose result triggers the payment obligation.
(5) Overhead expenditures, including expenditures related to the lease of office space, payments for utilities, rental or purchase of office equipment and furnishings, miscellaneous supplies, costs of internal copying and printing, monthly telephone charges, personnel costs, and candidate or staff travel expenses, shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditures were made, to the election held on that date.
(6) Expenditures related to campaign fundraising shall be allocated to the election for which the funds were raised. If fundraising expenditures cannot be assigned in this manner to a particular election, fundraising expenditures shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expense was incurred, to the election held on that date. Fundraising expenditures for the payment of debts under Government Code section 85316 shall not be counted against the voluntary expenditure ceilings established under Government Code section 85400. (7) Unless there is a clear indication to the contrary, campaign expenditures not described in subdivisions (a)(1) through (a)(6) of this regulation shall be allocated to the next election following the date(s) on which the expenditures were made or, if the election is held on the date when the expenditure was made, to the election held on that date. Refunds of any expenditure on goods or services not provided to or used by the campaign shall be credited to the election for which the expenditure would otherwise have been allocated. 666
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(8) The candidate shall maintain records establishing that the candidate's allocation of campaign expenditures under Government Code section 85400 was consistent with the provisions of the Act and of this regulation.
(b) The allocation of expenditures under this regulation shall be reported pursuant to subdivision (c) of 2 Cal. Code Regs. section 18421.4.
(c) A non-monetary contribution is deemed to be a campaign expenditure made by the receiving committee on the date of receipt, which counts against the voluntary expenditure limits prescribed by Government Code section 85400, if an expenditure for equivalent goods or services would have been a campaign expenditure described in subdivision (a) of this regulation.

For purposes of Government Code section 85400, the amount of the expenditure shall be the fair market value of the contribution on the date of receipt. (d) Expenditures not counted against the voluntary expenditure limits prescribed by Government Code section 85400 include, but are not limited to, contributions to other candidates or committees, costs associated with preparing and filing campaign finance reports required under the Act, candidate filing fees, and costs of ballot pamphlet statements.

Note: Authority cited: Section 83112, Government Code. Reference: Sections 82015, 85400 and 85402, Government Code.

HISTORY

1. New section filed 11-26-2001; operative 12-26-2001 (Register 2001, No. 48). For prior history, see Register 92, No. 28.

2. Amendment of subsection (b) filed 9-12-2002 as a change without regulatory effect.

Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, 667
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nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2002, No. 37).

3. Amendment of subsection (a)(8) filed 5-12-2021; operative 6-11-2021 pursuant to Cal. Code Regs., tit. 2, section 18312(e). Submitted to OAL for filing pursuant to Fair Political Practices Commission v. Office of Administrative Law, 3 Civil C010924, California Court of Appeal, Third Appellate District, nonpublished decision, April 27, 1992 (FPPC regulations only subject to 1974 Administrative Procedure Act rulemaking requirements and not subject to procedural or substantive review by OAL) (Register 2021, No. 20).
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CITY OF CUPERTINO
Agenda Item
22-10933 Agenda Date: 5/17/2022
Agenda #: 27.

Subject: Consider adopting a resolution authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period May 19, 2022 through June 18, 2022 pursuant to the Brown Act, as amended by AB 361
Adopt Resolution No. 22-057 authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period May 19, 2022 through June 18, 2022 pursuant to the Brown Act, as amended by AB 361. /// Recommended Postponement: Postponement to May 19, 2022 meeting CITY OF CUPERTINO Page 1 of 1 Printed on 5/12/2022
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1 CITY COUNCIL STAFF REPORT
Meeting: May 17, 2022
Subject
Consider adopting a resolution authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period May 19, 2022 through June 18, 2022 pursuant to the Brown Act, as amended by AB 361 Recommended Action
Adopt the Draft Resolution authorizing continued remote teleconference meetings of the legislative bodies of the City of Cupertino for the period May 19, 2022 through June 18, 2022 pursuant to the Brown Act, as amended by AB 361
Background
On March 2, 2020, Governor Newsom declared a state of emergency due to the public health threat posed by COVID-19. On March 4, 2020, Governor Newsom issued Executive Order No-29-20, which suspended certain elements of the Brown Act and specifically allowed legislative bodies to hold meetings entirely electronically with no physical meeting. In accordance with the Executive Order, the City held its first teleconference meeting on March 24, 2020, to help stop the spread of COVID-19. On June 11, 2021, Governor Newsom issued Executive Order No-08-21, which stated that the provisions in Executive Order No-29-20, suspending certain elements of the Brown Act, would continue to apply through September 30, 2021.

On September 15, 2021, Governor Newsom signed AB 361 into law, which allows state and local agencies to continue using teleconferencing during certain state-declared emergencies under modified Brown Act requirements. AB 361 became effective immediately after signing due to its emergency clause and is set to sunset on January 1, 2024. Under AB 361, teleconference meetings may be held during a state of emergency if (1) state or local officials have imposed or recommended measures to promote social distancing, or (2) a legislative body determines by a majority vote that meeting in person would present imminent risks to the health or safety of attendees. (Gov. Code, § 54953(e)(1).)
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2 To continue teleconference meetings beyond a 30-day period, AB 361 requires the Council to make a determination that either (i) "[t]he state of emergency continues to directly impact the ability of the members to meet safely in person, or (ii) “State or local officials continue to impose or recommend measures to promote social distancing.” (Gov. Code, § 54953(e)(3)(B).) That determination must be reviewed each 30 days thereafter to continue teleconference meetings. (Ibid.)
Discussion
AB 361 allows the City Council and other City legislative bodies to continue meeting exclusively via teleconference so long as a state emergency declaration remains in place and the statute’s conditions for permitting remote meetings are met. To continue meeting remotely, the City Council must find that state or local officials have imposed or recommend measures to support social distancing, or that the state of emergency continues to directly impact the ability of the members to meet safely in person.

On May 3, 2022, Council adopted Resolution No. 22-050 affirming findings related to AB 361 and authorizing the City Manager and legislative bodies of the City of Cupertino to meet exclusively by teleconference in accordance with Government Code section 54953(e)(3) and other applicable provisions of the Brown Act through June 2, 2022 (Attachment B). Council may make either or both of the permitted findings to extend the time to allow teleconference meetings to continue. The Santa Clara County Health Officer continues to recommend that public bodies meet remotely to the extent possible, specifically including use of newly enacted AB 361 to maintain remote meetings under the Ralph M. Brown Act and similar laws (Attachment C). It is therefore recommended that Council adopt the Draft Resolution authorizing continued teleconference meetings for the City of Cupertino’s legislative bodies in order to protect the health and safety of all attendees and participants, particularly those who are unvaccinated (Attachment A).

Sustainability Impact
Conducting meetings remotely has reduced paper consumption by providing electronic access to meeting materials instead of printed materials.

Fiscal Impact
No fiscal impact.
_____________________________________
Prepared by: Kirsten Squarcia, City Clerk
Approved for Submission by: Dianne Thompson, Assistant City Manager Attachments:

A – Draft Resolution
B – Adopted Resolution No. 22-050
C – Health Officer Recommendation Regarding Public Governmental Meetings 671
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RESOLUTION NO. 22-___

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

AUTHORIZING CONTINUED REMOTE TELECONFERENCE MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY OF CUPERTINO FOR THE PERIOD MAY 19, 2022 THROUGH JUNE 18, 2022 PURSUANT TO BROWN ACT PROVISIONS WHEREAS, the City of Cupertino is committed to preserving and nurturing public access and participation in meetings of the City Council, commissions, and committees; and
WHEREAS, all meetings of the City of Cupertino’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Government Code sections 54950–54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and
WHEREAS, the Brown Act, Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, a required condition for holding meetings exclusively by teleconference is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and
WHEREAS, Government Code section 54953(e) further requires that in order to authorize meetings exclusively by teleconference, a legislative body must determine that state or local officials have imposed or recommended measures to promote social distancing, or that meeting in person would present imminent risks to the health and safety of attendees; and
WHEREAS, on October 5, 2021, November 2, 2021, November 30, 2021, December 21, 2021, January 18, 2022, February 15, 2022, March 15, 2022, April 5, 2022, and May 3, 2022, the Cupertino City Council made the findings required under Government Code section 54953(e) and resolved that the legislative bodies of the City of Cupertino shall conduct their meetings without compliance with Government Code section 54953(b)(3), as authorized by Government Code section 54953(e), and that such legislative bodies 672
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Resolution No. 22-___

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should comply with the requirements to provide the public with access to the meetings as prescribed in section 54953(e)(2); and
WHEREAS, Government Code section 54593(e)(3) provides that to continue to holding meetings of legislative bodies exclusively by teleconference, the legislative body must reconsider the circumstances of the state of emergency every 30 days, and find that either (i) the state of emergency continues to directly impact the ability of the members to meet safely in person, or (ii) State or local officials continue to impose or recommend measures to promote social distancing; and
WHEREAS, the City Council has reconsidered the circumstances of the state of emergency that now exists, specifically defined in the County of Santa Clara proclamation of a local emergency beginning February 3, 2020, the City of Cupertino proclamation of a local emergency on March 11, 2020, the Governor of the State of California proclamation of a state of emergency beginning on March 4, 2020, and the national emergency declaration in Proclamation 9994 of March 13, 2020, beginning March 1, 2020, concerning the COVID-19 pandemic; and
WHEREAS, the County of Santa Clara Health Officer's Recommendation Regarding Continued Remote Public Meetings of Governmental Entities dated September 21, 2021 and the California Department of Industrial Relations Revised Emergency Temporary Standards, effective January 14, 2022, continue to require or recommend social distancing in the workplace in certain circumstances; and WHEREAS, the Health Officer's Recommendations, the Revised Emergency Temporary Standards, and evidence documenting the transmission of COVID-19 in indoor spaces establishes that the state of emergency continues to directly impact the ability of the members to meet safely in person; and
WHEREAS, based on the above findings, the Cupertino City Council hereby determines that the legislative bodies of the City of Cupertino shall continue to conduct their meetings without compliance with Government Code section 54953(b)(3), as authorized by Government Code section 54953(e), and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in section 54953(e)(2); and
WHEREAS, the City has and will continue to provide access for the public to legislative meetings and procedures through video teleconference technologies. 673
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Resolution No. 22-___

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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cupertino, as follows:

1. Remote Teleconference Meetings. The City Manager and legislative bodies of the City of Cupertino are hereby authorized and directed to meet exclusively by teleconference and to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisions of the Brown Act.

2. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective through June 18, 2022, or such time as the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the City Council of the City of Cupertino may continue to teleconference without compliance with Government Code section 54953(b)(3).

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 17th day of May 2022, by the following vote:

Vote Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
_______________ ________________
Darcy Paul, Mayor
City of Cupertino
________________________
Date
ATTEST:
____________________ ___________
Kirsten Squarcia, City Clerk
________________________
Date
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RESO[UTION N0. 22-050

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

AUTHORIZING CONTINUED REMOTE TELECONFERENCE MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY OF CUPERTINO FOR THE PERIOD MAY 3, 2022 THROUGH JUNE 2, 2022 PURSUANT TO BROWN ACT PROVISIONS WHERE AS, the City of Cupertino is committed to preserving and nurturing public access and participation in meetings of the City Council, commissions, and committees; and
WHEREAS, all meetings of the City of Cupertino's legislative bodies are open and public, as required by the Ralph M. Brown Act (Government Code sections 54950-54963), so that any member of the public may attend, participate, and watch the City's legislative bodies conduct their business; and
WHEREAS, the Brown Act, Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, a required condition for holding meetings exclusively by teleconference is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and
WHEREAS, Government Code section 54953(e) further requires that in order to authorize meetings exclusively by teleconference, a legislative body must determine that state or local officials have imposed or recommended measures to promote social distancing, or that meeting in person would present imminent risks to the health and safety of attendees; and
WHEREAS, on October 5, 2021, November 2, 2021, November 30, 2021, December 21, 2021, January 18, 2022, February 15, 2022, March 15, 2022, and April 5, 2022 the Cupertino City Council made the findings required under Government Code section 54953(e) and resolved that the legislative bodies of the City of Cupertino shall conduct their meetings without compliance with Government Code section 54953(b)(3), as authorized by Government Code section 54953(e), and that such legislative bodies should 675
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Resolution No. 22-050

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comply with the requirements to provide the public with access to the meetings as prescribed in section 54953(e)(2); and
WHEREAS, Government Code section 54593(e)(3) provides that to continue to holding meetings of legislative bodies exclusively by teleconference, the legislative body must reconsider the circumstances of the state of emergency every 30 days, and find that either (i) the state of emergency continues to directly impact the ability of the members to meet safely in person, or (ii) State or local officials continue to impose or recommend measures to promote social distancing; and
WHEREAS, the City Council has reconsidered the circumstances of the state of emergency that now exists, specifically defined in the County of Santa Clara proclamation of a local emergency beginning February 3, 2020, the City of Cupertino proclamation of a local emergency on March 11, 2020, the Governor of the State of California proclamation of a state of emergency beginning on March 4, 2020, and the national emergency declaration in Proclamation 9994 of March 13, 2020, beginning March 1, 2020, concerning the COVID-19 pandemic; and
WHEREAS, the County of Santa Clara Health Officer's Recommendation Regarding Continued Remote Public Meetings of Governmental Entities dated September 21, 2021 and the California Department of Industrial Relations Revised Emergency Temporary Standards, effective January 14, 2022, continue to require or recommend social distancing in the workplace in certain circumstances; and WHEREAS, the Health Officer's Recommendations, the Revised Emergency Temporary Standards, and evidence documenting the transmission of COVID-19 in indoor spaces establishes that the state of emergency continues to directly impact the ability of the members to meet safely in person; and
WHEREAS, based on the above findings, the Cupertino City Council hereby determines that the legislative bodies of the City of Cupertino shall continue to conduct their meetings without compliance with Government Code section 549530ri)(3), as authorized by Government Code section 54953(e) and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in section 54953(e)(2); and
WHEREAS, the City has and will continue to provide access for the public to legislative meetings and procedures through video teleconference technologies. 676
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Resolution No. 22-050

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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cupertino, as follows:

2. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective through June 2, 2022, or such time as the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the City Council of the City of Cupertino may continue to teleconference without compliance with Government Code section 54953(b)(3).

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 3rd day of May 2022, by the following vote:

Vote
AYES:

NOES:

ABSENT:

ABST AIN:

Members of the City Council
Paul, Chao, Moore, Wei, Willey
None
None
None
SIGNED:
r/r/-oz-z
(Darcy Paul+
City of Cupertino
Date
ATTEST:

Kirsten Squarcia, City Clerk Date
5/6/22
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County of Santa Clara
Public Health Department
Health Officer
976 Lenzen Avenue, 2nd Floor
San José, CA 95126
408.792.3798
Board of Supervisors: Mike Wasserman, Cindy Chavez, Otto Lee, Susan Ellenberg, S. Joseph Simitian County Executive: Jeffrey V. Smith
Recommendation Regarding Continued Remote Public Meetings of Governmental Entities Issued: September 21, 2021
In light of the continued state of emergency related to COVID-19, the County Public Health Officer continues to recommend that public bodies meet remotely to the extent possible, specifically including use of newly enacted AB 361 to maintain remote meetings under the Ralph M. Brown Act and similar laws.

Among other reasons, this recommendation is made due to the continued threat of COVID-19 to the community, the unique characteristics of public governmental meetings (such as the increased mixing associated with bringing together people from across the community, the need to enable those who are immunocompromised or unvaccinated to be able to safely continue to fully participate in public governmental meetings, and the challenges with fully ascertaining and ensuring compliance with vaccination and other safety recommendations at such meetings), and the continued increased safety protection that social distancing provides as one means by which to reduce the risk of COVID-19 transmission. This recommendation does not apply to those meetings of a quasi-judicial nature that have been already meeting in person prior to September 21, 2021, for example to allow for credibility determinations of witnesses.

The Health Officer will continue to evaluate this recommendation on an ongoing basis and will communicate when there is no longer such a recommendation with respect to meetings for public bodies.
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CITY OF CUPERTINO
Agenda Item
22-10934 Agenda Date: 5/17/2022
Agenda #: 28.

Subject: Consider the FY 2020-21 Annual Comprehensive Financial Report (ACFR) and related supplemental reports
Accept the FY 2020-21 Annual Comprehensive Financial Report (ACFR) and related supplemental reports. /// Recommended Postponement: Postponement to May 19, 2022 meeting CITY OF CUPERTINO Page 1 of 1 Printed on 5/12/2022
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CITY COUNCIL STAFF REPORT
Meeting: May 17, 2022
Subject
Consider the FY 2020‐21 Annual Comprehensive Financial Report (ACFR) and related supplemental reports.

Recommended Action
Accept the FY 2020‐21 Annual Comprehensive Financial Report (ACFR) and related supplemental reports.

Discussion
The City of Cupertino’s external auditor, Crowe LLP, audited the City’s accompanying financial statements as of and for the year ended June 30, 2021. During the audit, procedures were performed to obtain audit evidence regarding amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design appropriate audit procedures. Audit procedures are not designed to express an opinion on the effectiveness of the entity’s internal control.

Crowe LLP expressed an unmodified (or clean) opinion, stating “the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, the Transportation Special Revenue Fund, and the Housing Development Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America” (see FY 2020‐21 ACFR, page 2).

Crowe LLP also issued an Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (GAGAS Report). The purpose of this report is solely to describe the scope of the auditor’s testing 680
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of internal control over financial reporting and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance.

The report disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standards.

The City of Cupertino engaged Crowe LLP to perform an Agreed‐Upon‐Procedures (AUP) on the City’s Appropriations Limit Worksheetrelated to the City’s compliance with Section 1.5 of Article XIIIB of the California Constitution during the period ending June 30, 2021. City Council adopted Resolution 20‐086, establishing an Appropriations Limit of $109,062,934 for FY 2020‐21; no exceptions were noted.

The City of Cupertino engaged Crowe LLP to perform an AUP on the 2019 Clean Water and Storm Protection Fee for the City of Cupertino; no exceptions were noted.

Lastly, the City of Cupertino engaged Crowe LLP to perform an AUP on the City’s investment policy dated May 2020; no exceptions were noted.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.
_____________________________________
Prepared by: Thomas Leung, Acting Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Dianne Thompson, Assistant City Manager Attachments:

A – FY 2020‐21 ACFR
B – FY 2020‐21 GAGAS Report
C – FY 2020‐21 Appropriation Limit AUP Report
D – FY 2020‐21 Storm Drain AUP Report
E – FY 2020‐21 Investment AUP Report
F – Management Letter
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FISCAL YEAR
2020 - 2021
Annual
Comprehensive
Financial Report
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CITY OF CUPERTINO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
Prepared by the City of Cupertino Administrative Services Department Finance Division
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i.

CITY OF CUPERTINO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the year ended June 30, 2021

CONTENTS

INTRODUCTORY SECTION
TABLE OF CONTENTS ..................................................................................................................... i LETTER OF TRANSMITTAL .............................................................................................................. iii ORGANIZATION CHART ................................................................................................................... x CITY COUNCIL AND DIRECTORY OF CITY OFFICIALS ................................................................ xi COMMISSIONS AND COMMITTEES ................................................................................................ xii CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING .................. xiii

FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT .................................................................................................... 1 MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) .......................................................... 4 BASIC FINANCIAL STATEMENTS:

GOVERNMENT-WIDE FINANCIAL STATEMENTS:

STATEMENT OF NET POSITION ..................................................................................................... 25 STATEMENT OF ACTIVITIES ........................................................................................................... 26 FUND FINANCIAL STATEMENTS:

GOVERNMENTAL FUNDS:

BALANCE SHEET .............................................................................................................................. 28

RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO
STATEMENT OF NET POSITION ................................................................................................... 29

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES ........................................................................................................................... 30 RECONCILIATION OF NET CHANGES IN FUND BALANCES —
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES .............................................. 31 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES — BUDGET AND ACTUAL — GENERAL FUND ................................................................................... 32 BUDGET AND ACTUAL — TRANSPORTATION SPECIAL REVENUE FUND ................................ 33 BUDGET AND ACTUAL — HOUSING DEVELOPMENT SPECIAL REVENUE FUND .................... 34 PROPRIETARY FUNDS:

STATEMENT OF NET POSITION ..................................................................................................... 36 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION ........................... 37 STATEMENT OF CASH FLOWS ....................................................................................................... 38 NOTES TO BASIC FINANCIAL STATEMENTS ....................................................................................... 39 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED):

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS .............. 74 SCHEDULE OF CONTRIBUTIONS — PENSION ............................................................................. 75 SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS ..................... 76 SCHEDULE OF CONTRIBUTIONS – OPEB ..................................................................................... 77 684
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ii.

CITY OF CUPERTINO, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the year ended June 30, 2021
CONTENTS (Continued)
OTHER SUPPLEMENTARY INFORMATION:

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL - PUBLIC FACILITIES CORPORATION DEBT SERVICE FUND .............. 79 NONMAJOR GOVERNMENTAL FUNDS:

COMBINING BALANCE SHEET ........................................................................................................ 81

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES .................................................................................................... 82

SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES — BUDGET AND ACTUAL ....................................................... 83 NONMAJOR ENTERPRISE FUND:

COMBINING STATEMENT OF NET POSITION ............................................................................... 87

COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION ......................................................................................................... 88 COMBINING STATEMENT OF CASH FLOWS ................................................................................. 89 INTERNAL SERVICE FUNDS:

COMBINING STATEMENT OF NET POSITION ............................................................................... 91

COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION ......................................................................................................... 92 COMBINING STATEMENT OF CASH FLOWS ................................................................................. 93

STATISTICAL SECTION
FINANCIAL TRENDS:

NET POSITION/ASSETS BY COMPONENT — LAST TEN FISCAL YEARS ................................... 96 CHANGES IN NET POSITION/ASSETS — LAST TEN FISCAL YEARS.......................................... 97 FUND BALANCES OF GOVERNMENTAL FUNDS — LAST TEN FISCAL YEARS ......................... 99 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS —
LAST TEN FISCAL YEARS .............................................................................................................. 100 REVENUE CAPACITY:

ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY — LAST TEN FISCAL YEARS .................................................................................... 101 DIRECT AND OVERLAPPING PROPERTY TAX RATES — LAST TEN FISCAL YEARS ............... 102 PRINCIPAL PROPERTY TAXPAYERS — CURRENT YEAR AND TEN YEARS AGO .................... 103 PROPERTY TAX LEVIES AND COLLECTIONS — LAST TEN FISCAL YEARS ............................. 104 DEBT CAPACITY:

RATIOS OF OUTSTANDING DEBT BY TYPE — LAST TEN FISCAL YEARS ................................ 105 DIRECT AND OVERLAPPING BONDED DEBT ................................................................................ 106 LEGAL DEBT MARGIN INFORMATION — LAST TEN FISCAL YEARS .......................................... 107 RATIO OF GENERAL BONDED DEBT — LAST TEN FISCAL YEARS ........................................... 108 DEMOGRAPHIC AND ECONOMIC INFORMATION:

DEMOGRAPHIC AND ECONOMIC STATISTICS — LAST TEN FISCAL YEARS ........................... 109 2021 EMPLOYER RANKING ............................................................................................................. 110 OPERATING INFORMATION:

FULL-TIME EQUIVALENT CITY EMPLOYEES BY
FUNCTION/PROGRAM — LAST TEN FISCAL YEARS ................................................................. 111 OPERATING INDICATORS BY FUNCTION/PROGRAM — LAST TEN FISCAL YEARS ................ 112 CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM — LAST TEN FISCAL YEARS ........... 113

COMMUNITY PROFILE
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iii.
_________, 2022
To the Citizens of Cupertino, Honorable Mayor,
Members of the City Council, and City Manager
It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) for the City of Cupertino (the City) for the fiscal year ended June 30, 2021. The report is prepared in accordance with generally accepted accounting principles (GAAP) set by the Governmental Accounting Standards Board (GASB).

The report presents City information on an entity-wide basis and on a more detailed fund level basis. The fund-level reports emphasize the City’s major funds. A Management Discussion and Analysis (MD&A) presents a comparative analysis of current and prior year results, changes in financial position, a comparison of actual versus budget, financial highlights, trends, and disclosure of any known significant events or decisions that affect the financial condition of the City. This transmittal letter is designed to complement the MD&A and should therefore be read in conjunction with it. The MD&A is required supplementary information and is found in the Financial Section of the ACFR.

The accuracy of the data presented and the completeness and fairness of the presentations, including all disclosures, are the responsibility of the management of the City. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed to protect the City’s assets and provide sufficient, reliable information for the proper preparation of these financial statements. We believe the data is accurate in all material respects and is presented in a manner that fairly sets forth the City’s financial position. Furthermore, we believe that all disclosures necessary to enable the reader to gain an understanding of the City’s financial activity have been included.

REPORTING ENTITY
This ACFR includes all component units and funds of the City. It reports all activities for which the City is considered to be financially accountable. The general governmental funds support a full range of services, including law enforcement, community development, recreation, public works, public and environmental affairs, and general administration. Enterprise funds account for recreation and solid waste operations supported by user fees. This financial report incorporates data for the City of Cupertino and its component unit, the Cupertino Public Facilities Corporation.

The City operates under a Council-City Manager form of government. There are five council members, including the Mayor, who serve staggered four-year terms. The City Council appoints the City Manager who is responsible for the daily administration of City affairs. The City Council also appoints the City Attorney and the City Treasurer via resolution. All other employees are appointed by the City Manager.

CITY OF CUPERTINO

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3202
(408) 777-CITY • WWW.CUPERTINO.ORG
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ECONOMIC CONDITIONS
The City of Cupertino is located in Santa Clara County at the southern end of the San Francisco Bay Peninsula. The City is comprised of 13-square miles and is bordered by the cities of San Jose, Saratoga, Sunnyvale, Santa Clara, and Los Altos. It has a residential population of 66,274.

Situated at the west end of Silicon Valley, Cupertino has earned the reputation of a balanced community with a healthy climate for business and well-maintained residential neighborhoods, community parks and public facilities. The excellent reputation of Cupertino’s schools is a major attraction for families wishing to settle in close proximity to high paying jobs in Silicon Valley. The City recognizes the importance of quality school facilities and programs to all Cupertino residents, and works in partnership with the schools in many programs affecting education and youth. National surveys rank the City high in education levels, average household incomes, and registered patent numbers, as well as one of the best cities in which to live and raise a family.

Because Cupertino is a mature, 93% built-out city, the City of Cupertino focuses on business retention and revitalization. Cupertino is world renowned as the home of high-tech giants, such as Apple, Inc., and as a community with stellar public schools. De Anza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for attracting local and international students. The City’s proactive economic development efforts have resulted in an innovative environment for start-ups and growing companies to thrive. The City strives to retain and attract local companies through active outreach and a responsive and customer-oriented entitlement process.

Cupertino approved a new mixed-use development project, Westport Cupertino, on the site of the former Oaks Shopping Center. The new development will include 88 townhome/rowhouses, 128 senior assisted living units, as well as 48 Senior Below Market Rate apartments. Further, the development will continue to provide approximately 20,000 square feet of retail open to the public.

The Main Street and Nineteen800 mixed-use developments continue to provide a vibrant downtown area for Cupertino, offering a large selection of restaurants and retailers, including Alexander’s Steakhouse, Eureka!, Oren’s Hummus, Lazy Dog, Ippudo, HaiDiLao Hot Pot Restaurant, Pressed Juicery, Orangetheory, 85 Degree Bakery, Somi Somi, Sul & Beans, Kura Sushi, La Pizzeria, Boiling Point and Jin Tea, Koja Kitchen, Bishops Cuts & Colors, Capezio, Howard’s Shoes, Tan Cha, and Meet Fresh. Housing, office, and the Residence Inn by Marriott are available to support the thriving area. Benihana, Bowlmor, and Ice Center Cupertino also serve as long-time anchors of the remaining portion of Vallco.

The existing retail and commercial developments, many of which have been recently redeveloped, strengthens existing popular venues in Cupertino, including The Marketplace, Cupertino Village, Crossroads, and Homestead Square. The Marketplace has a variety of stores and restaurants popular with students, families, and working professionals. They include Galpao Gaucho, Daiso, Marukai Groceries, Harumi Sushi, La Patisserie Bakery, Beard Papa’s, Legend’s Pizza,, while Cupertino Village continues to be home to 99 Ranch Market, Duke of Edinburgh Pub & Restaurant, JSJ Street Kitchen, Kira Kira Beauty, MOD Pizza, Ten Ren Tea, Fantasia Coffee & Tea, , and many other Asian restaurants, bakeries, and shops.

Homestead Square Shopping Center, located at Homestead Road and De Anza Boulevard, includes a 24- hour Safeway, Ulta Beauty, Ross Stores, Stein Mart, Pet Club, Michael’s, Rite Aid, FedEx, and numerous restaurants, such as Fish’s Wild, Pho Hoa Noodle Soup, Yayoi Teishoku Japanese Restaurant, Starbucks, and Chipotle.

Cupertino features many other retail opportunities, including TJ Maxx and Home Goods, Whole Foods, Target, Party City, and over 180 restaurants to serve residents and the local workforce. There are now seven 687
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hotels providing over 1,000 rooms, to serve the area: The Aloft Cupertino, Cupertino Hotel, Hilton Garden Inn, Juniper Hotel operated by Curio, Marriott Courtyard, the Residence Inn by Marriott, and the Hyatt House. Two hotel sites have been approved since 2019, which include the De Anza Hotel at 10931 N. De Anza Blvd. and the Cupertino Village Hotel at 10801 N. Wolfe Road.

According to the 2020-2021 Assessor’s Annual Report for Santa Clara County, Cupertino’s net assessment roll growth increased over $1.8 billion, or 6.95%, from the prior year. Approximately $802 million was attributable to residential use values and $782 million were attributable to unsecured asset increases such as business fixtures and personal property.

The City’s sales tax revenues are generated from five principal economic categories: business-to-business (includes electronic equipment and software manufacturers and distributors), state and county pools 20%, restaurants and hotels 2%, general retail 2%, and fuel and service stations 1%.

Our two largest sales taxpayers in the business-to-business category represent a large part of that sector and therefore can significantly affect sales tax trends. Due to taxpayer confidentiality constraints, the City is unable to disclose the amounts of sales tax reported for these businesses. The top taxpayers’ corporate and business technology spending has driven growth in this sector. Sales tax activity has increased across most sectors with a decrease primarily in construction. This decrease is attributed to the winding down of construction projects in the City, particularly, the Apple Park campus development. Given these trends, the City’s FY 2020-21 sales tax revenue is projected to show a more modest increase going forward.

Continued economic growth driven primarily by the business-to-business sector continued through FY 2014-15 until a slight $400,000 decline in FY 2015-16 due to a one-time clean up payment from the previous year received in FY 2016-17. FY 2016-17 increased significantly with a $3.5 million “triple-flip” close-out payment. There was a modest decrease in FY 2017-18 which was again attributable to the onetime “triple-flip” close-out payment from FY 2016-17 that was not received in FY 2017-18. Despite the fluctuation, the sales tax base experienced strong growth. FY 2018-19 experienced a slight decrease due to the tapering of localized sales tax dollars from construction and completion of Apple Campus 2 which further indicates a return to normalcy in respect to previous years. Additionally, the City received a onetime quarterly clean-up payment in FY 2017-18 of $1.6 million that contributed to the comparative decrease in FY 2018-19. In FY 2019-20, the City’s sales taxes experienced growth due to a one-time double payment 688
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from Apple. Additionally, a change in estimate in which the City adjusted its accrual practice to include the full remittance amounts from July and August 2020 contributed to approximately $9.0 million of the increase over the previous fiscal year. This change in estimate will be applied prospectively and consistently moving forward. Though much uncertainty remains during the course of the pandemic, the City has seen continued increases in FY 2020-21 due to the telework transition, the state-wide need for additional electronic equipment and infrastructure, and the Wayfair decision.

With the economic recovery and easing of credit, commercial development activity picked up considerably in 2012-13 and 2013-14 led by plan reviews of the new Apple Campus 2. Plans for the redevelopment of the Marina shopping center into a mixed-use project, Marina Plaza, was approved in 2016. This project will include 23,000 SF of retail and restaurant use, a 122-room boutique hotel, and 188 residential units including 16 below market rate units. Construction of a five story, 148-room Hyatt House hotel was completed in April 2019 and includes a full-service restaurant and meeting rooms. Through the City’s new General Plan Amendment (GPA) Authorization Process applications for two development projects were authorized by City Council during FY 2019-20 with the De Anza Hotel and the Cupertino Village Hotel.

The City’s pension and retiree medical (also referred to as OPEB, Other Post-Employment Benefits) unfunded actuarial accrued liabilities are discussed in the Notes to the Basic Financial Statements. The City must pay CalPERS, the state’s government pension system, annually to reduce its long-term liability for pensions. Cupertino’s CalPERS actuarial valuation report as of June 30, 2020 reported a pension unfunded accrued liability of $49.2 million with annual payments to CalPERS of 31.9% and 32.6% of projected payroll for 2022-23 and 2023-24, respectively, with ongoing increases after that because of actuarial assumption changes. CalPERS recently experienced strong performance in FY 20-21 with a return of 21.3% that ultimately triggered a reduction in the discount rate from 7% to 6.8%. To address long-term rising costs, Cupertino and state law has reduced pension benefits for new hires and increased employee contributions. As of June 30, 2021,the City has a Net OPEB Asset of $9.4 million with annual payments to a retiree health plan trust at -40.7% of payroll. The negative percentage of payroll further represents an over-funded status.

In addition to the City’s Section 115 OPEB Investment Trust established in 2010, in fiscal year 2017-18, the City Council approved the establishment of a Section 115 Pension Investment Trust as part of a pension rate stabilization program. An initial investment of $8,000,000 was made in FY 2018-19 and an additional contribution of $4 million and $2 million was made in FY 2019-20 and FY 2020-21, respectively.

Because the City contracts out police services to the County Sheriff and because fire protection is handled by a special district, the City avoids the high pension, capital, and operating costs of a City-operated public safety function. The City caps its contributions to employee health insurance premiums that benefit both the City and employees. A build-up of operating reserves from strong revenue years, such as 2013-14, along with a traditional under-spending of budgets, enables the City to withstand weak revenue years that occur periodically, such as in 2009-10.

On March 11, 2021, the American Rescue Plan Act (ARP) of 2021 was signed into law and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Funds, which together make up the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”).

The ARP is a $1.9 trillion economic stimulus bill. Within the ARP, the Coronavirus Local Fiscal Recovery Fund provided $350 billion for states, municipalities, counties, tribes, and territories, including $130 billion for local governments split evenly between municipalities and counties. California cities are expected to receive more than $7 billion dollars in much needed assistance to help offset the billions of dollars in revenue shortfalls due to the shutdown of local economies and the billions spent protecting public health, 689
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delivering essential services, protecting vulnerable populations, and helping small businesses survive during the pandemic.

The City of Cupertino is expected to receive two payments totaling $9,694,773 in SLFRF funding. The first payment was received in May 2021 in the amount of $4,847,386.50 and the second payment is expected in May 2022. The City may use SLFRF funds to cover these eligible costs incurred during the period that begins on March 3, 2021 and ends on December 31, 2024, as long as the award funds for the obligations incurred by December 31, 2024 are spent by December 31, 2026.

As a recipient of the SLFRF award, the City has substantial discretion to use the award funds in the ways that best suit the needs of the City’s constituents – as long as such use fits into one of the following four statutory categories determined by the U.S. Department of the Treasury:
 Public Health/Negative Economic Impacts: Recipients may use SLFRF award funds to provide assistance to households – such as rent, mortgage, or utility assistance – for costs incurred by the household prior to March 3, 2021, provided that the City did not incur the cost of providing such assistance prior to March 3, 2021.
 Premium Pay: Recipients may provide premium pay retrospectively for work performed at any time since the start of the COVID-19 public health emergency. Such premium pay must be “in addition to” wages and remuneration already received and the obligation to provide such pay must not have been incurred by the recipient prior to March 3, 2021.
 Revenue Loss: Treasury’s Final Rule gives recipients broad latitude to use funds for the provision of government services to the extent of reduction in revenue. While calculation of los revenue begins with the recipient’s revenue in the last full fiscal year prior to the COVID-19 public health emergency and includes the 12-month period ending December 31, 2020, use of funds for government services must be forward looking for costs incurred by the recipient after March 3, 2021.  Investments in Water, Sewer, and Broadband: Recipients may use SLFRF award funds to make necessary investments in water, sewer, and broadband. Recipients may use SLFRF award funds to cover costs incurred for eligible projects planned or started prior to March 3, 2021, provided that the project costs covered by the SLFRF award funds were incurred after March 3, 2021.

On September 7, 2021, the Cupertino City Council approved a plan which allocated the ARP funding towards revenue loss which was estimated at approximately $29 million. Additionally, the $9.7 million in total ARP funding was approved to be spent on general government services in the General Fund, specifically, City Work Program and special project items. Subsequently, and in accordance with the Treasury’s Final Rule, a $10 million “standard allowance” may be taken which would relieve a jurisdiction’s substantiation of revenue loss. Nevertheless, the City plans to continue using the ARP funding as originally authorized and will continue to monitor and report out on the estimated and actual revenue losses resulting from the pandemic.

ECONOMIC INITIATIVES
With the expanded Apple presence, and the on-going pandemic, the City’s revenue base will remain concentrated among its top companies and top economic sector, the volatile business-to-business area. Past recessions and the historic departure of major tax providers including, but not limited to, Hewlett-Packard and Seagate, demonstrates the need for diversification of the City’s revenue base and a long-term balance of revenues and expenditures. The City desires other revenues to mitigate the fluctuating nature of sales taxes, hotel taxes, user fees, and state grabs of local taxes in times of budget distress. 690
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COVID-19 has had significant adverse impacts on the City’s transient occupancy taxes, charges for services, and is sure to have long-lasting impacts on its sales tax. While the City’s revenues remained strong in FY 2020-21 and are currently on pace with projections in FY 2021-22, the City’s strong, untapped reserves afford the City to continue actively mitigating the impacts of the pandemic on the community.

Efforts to reduce operating costs, additional allocations for tenants at risk of eviction and homeless assistance, public facility and area sanitation enhancements, and small business grant assistance are all examples in FY 2019-20 and FY 2020-21 of the City’s on-going ability and commitment to overcome these challenges.

ACCOUNTING AND BUDGETARY CONTROL
In developing and evaluating the City’s accounting system, consideration is given to the adequacy of internal accounting controls. The City’s controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against losses from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability of assets.

The concept of reasonable assurance recognizes that the costs of a control should not exceed the benefits likely to be derived and that the evaluation of costs and benefits requires estimates and judgments by management.

The City’s budget is a detailed operating plan that identifies estimated costs and results in relation to estimated revenues. The budget includes 1) the programs, projects, services and activities to be provided during the fiscal year; 2) estimated revenue and fund balance available to finance the operating plan; and 3) the estimated spending requirements of the operating plan. The budget represents a process through which policy decisions are made, implemented and controlled.

INDEPENDENT AUDIT
City ordinance requires an annual audit of the financial records by an independent certified public accounting firm selected by the City Council and its audit committee. Crowe LLP audited the City’s Basic Financial Statements, and their opinion thereon is included in the Financial Section of this report.

FRAUD INVESTIGATION
On September 5, 2018 the Santa Clara County Sheriff’s Office arrested former City of Cupertino employee Jennifer “Yuen-Cheng” Chang, Senior Accountant, for her role in the embezzlement of public funds. It is believed that Ms. Chang issued and cashed numerous fraudulent checks between 2000 and 2014 for a total of $791,494.

The scheme ended in September 2014 right before the implementation of an upgraded financial system in December 2014 that tightened internal controls. Ms. Chang, who was hired by the City in 1997, retired in July 2015.

The checks were uncovered earlier this year by staff during a multi-year, detailed review of several accounts—including payroll, bank reconciliations, and deposits—which began after the implementation of the new financial system in fiscal year 2014-2015. The checks were found debited against a liability account and deemed suspicious due to their nature, size, and lack of supporting documentation.

The Santa Clara County Sheriff’s Office submitted its case to the Santa Clara County District Attorney’s Office for the issuance of a warrant for Ms. Chang. The California Attorney General has brought forward 68 criminal charges against Ms. Chang. The City of Cupertino is seeking full restitution from Ms. Chang through upcoming criminal and civil proceedings.
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At a Preliminary Hearing on December 10, 2019, Judge Pennypacker ruled that Ms. Chang will have to stand trial on 53 felony counts. The counts include Grand Theft and Computer Intrusion for the period September 28, 2000 to September 5, 2014, and Embezzlement for the period July 22, 2011 to September 5, 2014. Because Ms. Chang’s bank does not save documents from prior to 2011, the State cannot prove an element of the crime of embezzlement. Currently, the Judge set the case for an arraignment for further decision. It is the City’s position to support prosecution to the fullest extent of the law, including full restitution and jail time if criminal liability is found.

Among other internal controls maintained by the City over its financial records, in addition to the upgraded financial system in December 2014 that tightened internal controls, the City also hired additional accounting staff to enhance segregation of duties and established an internal audit function that was approved for implementation in fiscal year 2019-20. Lastly, the City has engaged Moss Adams, LLP to serve as its internal auditor.

CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Cupertino for its ACFR for the year ended June 30, 2020. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized ACFR. This report must satisfy both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that the current report continues to meet the Certificate of Achievement Program’s requirements.

Respectfully submitted,
Zach Korach
Finance Manager

ACKNOWLEDGMENTS
I would like to express my appreciation to City employees, department heads, the City Manager, members of the Audit Committee, and members of City Council for their interest in conducting the financial operations of the City in a responsible manner. Special thanks go to, Thomas Leung, Zeng Wang, Min Zhao, Jumaini Judoprasetijo, Vi Tran, and Amber Chang of the Finance Division for their continued support and dedication. Special recognition to Beth Viajar, Richard Wong, and Giang Dinh for their efforts in the preparation and production of this report.

Reviewed by,
Kristina Alfaro
Director of Administrative Services
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Citizens of
Cupertino
City Council
Committees and
Commissions
City Attorney City Manager City Treasurer
City Clerk Public Affairs Sustainability
Programs
Law Enforcement
(Santa Clara County
Sherriff – Contract)
Administrative
Services
Community
Development
Recreation and
Community Services Public Works Innovation &
Technology
Code Enforcement
Finance Building Recreation &
Education
Capital Improvement
Program Transportation GIS Infrastructure
Human Resources Planning Sports, Safety &
Outdoor Recreation
Development
Services
Environmental
Programs Video Applications
Economic
Development
Business &
Community Services Service Center
Code Enforcement
(Zoning & Building) Grounds Streets Trees & ROW Facilities & Fleet Housing
x.
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Directory of City Officials
City Council
Darcy Paul Liang Chao
Mayor Vice Mayor
Kitty Moore Jon Willey
Council member Council member
Hung Wei
Council member
Directory of City Officials
Deborah L. Feng – City Manager
Dianne Thompson – Assistant City Manager
Heather Minner – City Attorney (Contract)
Kristina Alfaro – Director of Administrative Services
Ben Fu – Director of Community Development
Roger Lee – Director of Public Works
Joanne Magrini – Director of Parks and Recreation
Bill Mitchell – Chief Technology Officer
xi.
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Commissions and Committees

BICYCLE PEDESTRIAN

COMMISSION
Gerhard Eschelbeck
Erik Lindskog
Jack Carter
Maanya Condamoor
Ilango Ganga

FINE ARTS COMMISSION
Diana Matley
Janki Chokshi
Satish Tare
Esha Rao
Sudha Kasamsetty

HOUSING COMMISSION
Govind Tatachari
Tess Parish
Sue Bose
Connie Cunningham
Siva Gandikota

LIBRARY COMMISSION
Archana Panda
Liyan Zhao
Sheela Sreekanth
Qin Pan
Rahul Vasanth

PARKS AND RECREATION

COMMISSION
Carol Stanek
Xiangchen "Minna" Xu
Gopal Kumarappan
Neesha Tambe
Sashikala Begur

TECHNOLOGY,

INFORMATION &

COMMUNICATIONS

COMMISSION
Eliza Du
Mukesh Garg
Naidu Bollineni
Rajaram Soundararajam
Prabir Mohanty

AUDIT COMMITTEE
Angela Chen
Mingming (Daisy) Liang
Yan (Sophie) Song
Liang Chao
Kitty Moore

DESIGN REVIEW COMMITTEE
Steven Scharf
Vikram Saxena
Muni Madhdhipatla

ENVIRONMENTAL REVIEW

COMMITTEE
Kitty Moore
R "Ray" Wang
Dianne Thompson
Ben Fu
Chad Mosley

LEGISLATIVE REVIEW

COMMITTEE
Liang Chao
Kitty Moore

PLANNING COMMISSION
R "Ray" Wang
Vikram Saxena
Sanjiv Kapil
Muni Madhdhipatla
Steven Scharf

PUBLIC SAFETY COMMISSION
Eric Shan
Hymanand Nellore
Lakshminarasimha
Ankireddipally
Tiffany Wang
Yvonne Chao

SUSTAINABILITY

COMMISSION
Anna Weber
Gary Latshaw
Meera Ramanathan
Ram Mohan
Vignesh Swaminathan

TEEN COMMISSION
Arya Srivastava
Alden Gu
Rushil Jayant
Maple Leung
Zehra Naqvi
Samikshaa Natarajan
Anagaa Nathan
Jay Yeung
Alex Zhang
xii.
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Cupertino
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
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(Continued)

1. INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and City Council
City of Cupertino, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Cupertino, California (City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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(Continued)

2. Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, the Transportation Special Revenue Fund, and the Housing Development Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 1 to the financial statements, during the year ended June 30, 2021, the City implemented GASB Statement No. 84, Fiduciary Activities, effective July 1, 2020. This change resulted in the previously reported fiduciary fund to no longer be considered a component unit or a fiduciary fund of the City and as such it is no longer included in the City’s financial statements. Our opinions are not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, and the required supplementary information section on pages 4-21 and 77-81 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, other supplementary information section, statistical section and community profile are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The other supplementary information section is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplementary information section is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory section, statistical section and community profile has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
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3. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated <>, 2021 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Crowe LLP
Costa Mesa, California
<>, 2021
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
4 This section describes the City of Cupertino’s financial performance for the year. Readers are encouraged to consider the following information in conjunction with the accompanying Transmittal Letter and Basic Financial Statements.
2020-21 FINANCIAL HIGHLIGHTS
 The COVID-19 pandemic, and the ensuing lockdowns, has negatively affected economies not only in the region, but around the world. Sales tax, transient occupancy tax, and charges for services were both positively and negatively impacted as explained further below. However, while much uncertainty remains regarding the length and magnitude of these impacts, the City stands well positioned with robust fund balance reserves that have been bolstered by strong sales tax performance, federal funding from the American Rescue Plan Act of 2021, and budget reduction strategies.
 The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year 2020-21 by $335.1 million (net position). Of this amount, $92.8 million represents unrestricted net position, which may be used to meet the City’s ongoing obligations to citizens and creditors.
 City revenues have increased in 2020-21 with base governmental revenues showing a $3.4 million increase, or 3%, over 2019-20. The primary fluctuations include an increase in property and sales tax and program revenues that are offset by decreases in transient occupancy tax and charges for services. According to the 2020-2021 Assessor’s Annual Report for Santa Clara County, Cupertino’s net assessment roll growth increased $1.8 billion million, or 6.95%, from the prior year.

Approximately $802 million was attributable to residential use values and $782 million were attributable to unsecured asset increases.
 The City experienced an increase of approximately $10.8 million, or 43.2%, in FY 2019-20 sales tax revenues compared to the previous year. This trend continued in FY 2020-21 with sales tax revenues increasing by $6.9 million or 19.4% over the previous fiscal year. Although the City experienced declines in many of the sectors including autos and transportation, building and construction, fuel and service stations, general consumer goods, and restaurants and hotels over the last two year, these experiences were mitigated by strong performance in the business and industry sector and the City’s county pool allocation. The COVID-19 pandemic has brought great uncertainty to the economy and although the business and industry sector has experienced significant growth due to the telework conversion and closure of brick-and-mortar retail, the City continues to monitor and forecast these sectors conservatively. COVID-19 and shelter-in-place orders brought the City’s transient occupancy taxes to a near halt beginning in March of 2020. As a result, the City’s experienced a $5.1 million, or 70.6%, decrease in transient occupancy tax over the previous fiscal year.  The City continued to make substantial investment into capital projects dedicated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City facilities, resulting in an increase in net capital assets of $11.5 million, or 6%, after depreciation.  The City’s change in net position was $32.0 million for governmental activities and $34.3 million in total, reflecting the continued positive experience in sales tax and modest departmental spending.  The City’s Net Pension Liability for June 30, 2021, was $48.5 million, up $2.4 million from June 30, 2020, or 5.2%. The Plan Fiduciary Net Position as a Percentage of the Total Pension Liability for the City’s pension plan with CalPERS maintained at 68.2%. During fiscal year 2020-21, the City Council approved an additional $2 million contribution to the City’s recently established pension rate stabilization program (Section 115 Trust). Annual contributions to this trust will continue on an annual basis and as part of the City’s budget process. In accordance with guidance under GASB 67/68, the assets in the Section 115 Trust are reported as restricted cash and investments in the City’s General Fund. While the Section 115 Trust qualifies as a “trust,” the assets in the Section 115 Trust 700
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
5 are not used to directly pay benefits to beneficiaries; rather, they are used to pay CalPERS via the CERBT Trust and as a result, the activities are not required to be reported in a fiduciary fund. The Trust’s ending balance as of June 30, 2021 was $18.5 million.  Business-type activities contributed $4.9 million to citywide revenues totaling $120.6 million, while the same activities contributed over $5.5 million to citywide expenses of $86.4 million.  The City implemented the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, during fiscal year 2017-18. This statement requires governments to report a liability on the face of the financial statements for the OPEB provided by the City. During FY 2019-20, the City reduced the discount rate from 7.0% to

6.5% which consequently increased the Total OPEB Liability. As of June 30, 2020, the City reported a Net OPEB Liability of $2.0 million. With strong investment performance during FY 2020-21, the City’s actuarial valuation generated a Net OPEB Asset of $9.4 million. The City also reported deferred outflows and inflows related to OPEB of $1.6 million and $9.8 million, respectively. As of June 30, 2021, the City’s OPEB plan had a funding ratio or funded ratio or status of 132%.  On September 29, 2020, the City of Cupertino’s 2020A Certificates of Participation (2020 COPs) were successfully sold in order to refund the City’s 2012 Certificates of Participation for debt service savings. The 2020 COPs were very well received by investors due in large part to the well-regarded Cupertino name, the top-notch AA+ rating, the sizable annual principal amounts and short maturity, and favorable supply and demand dynamics in the California municipal market. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par and a True Interest Cost of 0.72%. Savings to the City’s General Fund amounts to approximately $494,000 per year for the next 10 years, or almost $5 million in total savings.  On March 11, 2021, the American Rescue Plan Act (ARP) of 2021 was signed into law and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Funds, which together make up the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”).

The American Rescue Plan (ARP) Act of 2021 is a $1.9 trillion economic stimulus bill. Within the ARP, the Coronavirus Local Fiscal Recovery Fund provided $350 billion for states, municipalities, counties, tribes, and territories, including $130 billion for local governments split evenly between municipalities and counties. California cities are expected to receive more than $7 billion dollars in much needed assistance to help offset the billions of dollars in revenue shortfalls due to the shutdown of local economies and the billions spent protecting public health, delivering essential services, protecting vulnerable populations, and helping small businesses survive during the pandemic.

The City of Cupertino is expected to receive two payments totaling $9,694,773 in SLFRF funding.

The first payment was received in May 2021 in the amount of $4,847,386.50 and the second payment is expected in May 2022. The City may use SLFRF funds to cover these eligible costs incurred during the period that begins on March 3, 2021 and ends on December 31, 2024, as long as the award funds for the obligations incurred by December 31, 2024 are spent by December 31, 2026.

CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
6 - Revenue Loss: Treasury’s Final Rule gives recipients broad latitude to use funds for the provision of government services to the extent of reduction in revenue. While calculation of lost revenue begins with the recipient’s revenue in the last full fiscal year prior to the COVID-19 public health emergency and includes the 12-month period ending December 31, 2020, use of funds for government services must be forward looking for costs incurred by the recipient after March 3, 2021.
- Investments in Water, Sewer, and Broadband: Recipients may use SLFRF award funds to make necessary investments in water, sewer, and broadband. Recipients may use SLFRF award funds to cover costs incurred for eligible projects planned or started prior to March 3, 2021, provided that the project costs covered by the SLFRF award funds were incurred after March 3, 2021.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis is intended to serve as an introduction to the City’s Basic Financial Statements. The Basic Financial Statements are comprised of the City-wide Financial Statements, the Fund Financial Statements, and the notes to the Basic Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and positions.

The City-Wide Financial Statements provide a long-term view of the City’s activities as a whole, and comprise the Statement of Net Position and the Statement of Activities. These statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. The accrual basis of accounting is similar to the accounting used by most private sector companies. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities. The Statement of Activities provides information about all the City’s revenues and expenses, with the emphasis on measuring net revenues and expenses for each of the City’s programs. The Statement of Activities explains in detail the change in net position for the year. Over time, increases or decreases in net position can be indicators of whether the financial condition of the City is improving or deteriorating.

All of the City’s activities are grouped into Governmental activities and Business-type activities, as explained below. The Statement of Net Position and the Statement of Activities provide a summary of these two types of activities for the City as a whole.
 Governmental activities—Most of the City’s basic services are considered to be governmental activities, including public works, law enforcement, community development, recreation, public & environmental affairs, and general administration. These services are supported by general City revenues such as property, sales and other taxes, and by specific program revenues such as developer fees and grants.

The City’s governmental activities include the activities of a separate legal entity, the Cupertino Public Facilities Corporation (the “Corporation”), because the City is considered to be financially accountable for the Corporation. The City leases its major facilities from the Corporation, which then uses the lease payments to pay principal and interest on the Corporation’s long-term debt. 702
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
7  Business-type activities—All of the City’s enterprises are reported here, including solid waste management and most of the City’s recreational operations. Unlike governmental services, these services are supported by charges paid by users based on the amount of services used.

The Fund Financial Statements report the City’s operations in more detail than the City-wide Financial Statements and focus primarily on the short-term activities of the City’s General Fund and other major funds. The Fund Financial Statements measure only current revenues, expenditures, assets, liabilities, and deferred inflows and outflows of resources; they exclude long-term assets and liabilities. Because these statements focus on the near-term inflows and outflows of spendable resources, such information may be useful in evaluating near-term financing requirements.

The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. Cupertino’s Fund Financial Statements include governmental, enterprise and internal service funds as discussed below. Each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules, which follow the Notes to Basic Financial Statements, present the detail of these non-major funds. Major funds present the significant activities of the City for the year, and may change from year to year as a result of changes in the pattern of City’s activities and public interest. For example, the Capital Improvement Projects Fund may or may not appear as a major fund depending on the volume of construction activity in a certain year.

Governmental Fund financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. They present essentially the same functions reported as governmental activities in the city-wide financial statements. However, capital assets and other longlived assets, along with long-term liabilities, are not presented in the Governmental Fund financial statements. Reconciliations are provided to facilitate a comparison between governmental funds and governmental activity statements to allow a better understanding of the long-term impact of the government’s near-term financial decisions.

Comparisons of budget and actual financial information are included in the Basic Financial Statements for the General Fund and other major Special Revenue Funds. For other nonmajor funds, budgetary comparison schedules for these funds are included in this document as supplemental information only.

Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis and include current and long-term assets and liabilities and deferred outflows and inflows of resources.

Enterprise funds are used to report the same functions presented as business-type activities in the Citywide Financial Statements, and in more detail in the Fund Financial Statements.

Since the City’s Internal Service funds provide goods and services only to the City’s governmental and business-type activities, their activities are reported only in total at the fund level. Internal Service funds may not be major funds because their revenues are derived from other City funds. These revenues are eliminated in the City-wide financial statements and any related profits or losses are returned to the activities which created them, along with any residual net position of the Internal Service funds. For this City, internal service activities predominantly benefit governmental rather than business-type functions, and are therefore included within governmental activities in the City-wide Financial Statements.

The Notes to Basic Financial Statements provide important additional detail that is essential to a full understanding of the data reported in the City-wide and Fund Financial Statements.

CITY-WIDE FINANCIAL ACTIVITIES
This analysis focuses on the net position and changes in net position of the City’s Governmental Activities (Tables 1 and 2) and Business-Type Activities (Tables 3 and 4) as presented in the City-wide Statement of Net Position and the Statement of Activities. 703
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
8 Governmental Activities
Table 1
Condensed Statement of Net Position at June 30
(in thousands)
Governmental Activities
2021 2020
Assets:

Cash and investments $ 167,810 $ 147,608
Restricted cash and investments 18,499 17,088
Other assets 17,260 17,150
Net OPEB assets 8,958 -
Capital assets 210,273 199,776
Total assets 422,800 381,622
Deferred Outflows of Resources:

Loss on refunding 239 -
Related to Pension (Note 10) 8,623 9,050
Related to OPEB (Note 11) 1,468 2,590
Total deferred outflows of resources 10,330 11,640
Liabilities:

Long term debt 23,348 27,010
Other liabilities 77,687 72,819
Total liabilities 101,035 99,829
Deferred Inflows of Resources:

Related to Pension (Note 10) 100 774
Related to OPEB (Note 11) 8,323 1,032
Total deferred inflows of resources 8,423 1,806
Net Position:

Net Investment in capital assets 186,503 177,128
Restricted 53,711 48,006
Unrestricted 83,458 66,493
Total net position $ 323,672 $ 291,627
The City’s change in net position from governmental activities was $32.0 million. The following significant changes within assets, liability, and net position categories occurred:
 The City made an additional $2 million contribution to its Section 115 Trust as part of the City’s pension rate stabilization program. In accordance with guidance under GASB 67/68, the assets in the Section 115 Trust are reported as restricted cash and investments in the City’s General Fund. While the Section 115 Trust qualifies as a “trust,” the assets in the Section 115 Trust are not used to directly pay benefits to beneficiaries; rather, they are used to pay CalPERS via the CERBT Trust and as a result, the activities are not required to be reported in a fiduciary fund.
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
9  Cash and investments increased by $20.2 million, or 13.7%, over the previous fiscal year.

This was due to continued positive performance of the City’s sales tax, receiving of the 1st tranche of American Rescue Plan Act funding ($4.8 million), and reduced departmental spending in an effort to mitigate the fiscal impacts brought on by the pandemic.  With strong investment performance in the City’s Section 115 OPEB Investment Trust, the City’s Net OPEB Liability was converted to a Net OPEB Asset in FY 2020-21 and was reported at $9.4 million.
 Capital assets increased approximately $10.5 million. This consisted of continued significant capital investment into capital projects dedicated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City facilities that were offset with current year depreciation expense.
 Long-term debt decreased by $3.7 million or 13.6% over the previous year and resulted from the successful refunding of the City’s 2012 Certificates of Participation in September 2020.  Other liabilities increased by approximately $4.9 million, primarily due to an increase in the City’s Net Pension Liability as well as a $4.8 million unearned revenue related to the American Rescue Plan Act of 2021.
 Deferred Outflows Related to Pension and OPEB decreased $1.6 million primarily due to actuarial changes of assumptions. Deferred Inflows of Resources Related to Pension and OPEB increased approximately $6.6 million primarily due to actuarial changes of assumptions.

Sources of Revenue, Governmental Activities
2020-21
Program revenues experienced consistent performance year-over-year as the pandemic has had significant adverse impact on charges for services, particularly in the Parks and Recreation department.

With the exception of transient occupancy taxes, the City’s general tax revenues remained strong with sales tax continuing its unprecedented positive performance throughout the pandemic. Revenues increased $3.4 million from the prior year, primarily due to decreases in functional program revenues offset with increases in general revenues.
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
10 Functional Expenses, Governmental Activities
2020-21
The Statement of Activities presents program revenues, expenses, general revenues, and the resulting change in net position as summarized in the next table. 706
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
11 Table 2
Condensed Statement of Activities for the Year Ended June 30 (in thousands)
Governmental Activities
Expenses 2021 2020
Administration $3,637 $7,975
Law enforcement 15,212 14,698
Innovation & technology 1,722 3,637
Administrative services 5,358 5,176
Recreation and community services 1,183 8,763
Community development 11,496 10,286
Public works 41,870 33,339
Interest on long-term debt 398 883
80,876 84,757
Revenues
Program revenues:

Charges for services 18,137 19,911
Operating grants and contributions 5,998 5,794
Capital grants and contributions 1,792 1,047
Total program revenues 25,928 26,752
General revenues:

Taxes:

Property tax 19,198 18,117
Property tax in-lieu of motor vehicle fee 9,080 8,490
Sales tax 42,581 35,657
Transient occupancy tax 2,141 7,286
Utility user tax 3,074 3,182
Franchise tax 3,368 3,419
Other taxes 3,022 1,774
Intergovernmental, unrestricted:

Motor vehicle license fee 44 47
Investment earnings 4,148 3,259
Gain on sale of capital assets - 4
Miscellaneous 3,185 1,187
Total general revenues 89,842 85,586
Total revenues 115,770 112,338
Excess of revenues over expenses,
before transfers 34,894 27,581
Transfers (Note 4) (2,849) (3,523)
Change in net position 32,045 24,058
Beginning net position 291,627 267,569
Ending net position $ 323,672 $ 291,627
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
12 City-wide Governmental Activities Revenues
Table 2 shows that revenues from governmental activities increased $3.4 million or 3.1% from last year, finishing at $115.8 million. General revenues also experienced a net increase namely, property tax, sales tax, and other taxes as further discussed below.

Increases in the City’s general revenues are attributable to a $1.6 million increase in property tax over the prior year. According to the 2020-2021 Assessor’s Annual Report for Santa Clara County, Cupertino’s net assessment roll growth increased $1.8 billion million, or 6.95%, from the prior year.

Approximately $802 million was attributable to residential use values and $782 million were attributable to unsecured asset increases.

The City experienced an increase of approximately $10.8 million, or 43.2%, in FY 2019-20 sales tax revenues compared to the previous year. This trend continued in FY 2020-21 with sales tax revenues increasing by $6.9 million or 19.4% over the previous fiscal year. Although the City experienced declines in many of the sectors including autos and transportation, building and construction, fuel and service stations, general consumer goods, and restaurants and hotels over the last two year, these experiences were mitigated by strong performance in the business and industry sector and the City’s county pool allocation. The COVID-19 pandemic has brought great uncertainty to the economy and although the business and industry sector has experienced significant growth due to the telework conversion and closure of brick-and-mortar retail, the City continues to monitor and forecast these sectors conservatively.

In FY 2019-20, transient occupancy tax had decreased $1.6 million, or 18.1%, over the prior year due to the COVID-19 and related shelter in place orders. FY 2020-21 experienced similar trends, but were extrapolated for the entire year. Total transient occupancy taxes amounted to $2.1 million and were down $5.1 million, or 70.6%. The road to recovery for this tax source is anticipated to take longer than other areas as employers’ long-term and permanent telework policies will have substantial impact on the timing and extent of recovery.

Other taxes experienced a $1.2 million, or 70.3% increase which was primarily driven by $735,259 in federal funding received from the CARES Act. While the revenue was not recognized in FY 2020-21, it is important to note that $4.8 million in federal funding was received from the American Rescue Plan Act of 2021. This amount, in addition to the second payment of $4.8 million to be received in May 2022 will all be recognized in FY 2021-22.

Investment earnings saw a decrease of $1.5 million, or 27.1%, over the prior year. This was due to the City’s portfolio’s total rate of return of 0.27% (net of fee) for the fiscal year (source: Chandler Asset Management).

Program revenues showed a decrease of $824,000, or 3%, and is primarily attributable to a decline in charges for services within the Parks & Recreation department. 708
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
13 City-wide Governmental Activities Expenses
City-wide governmental activities expenses decreased by $3.9 million, or 5%. This was primarily driven by budget reduction strategies that were incorporated as part of the FY 2020-21 Adopted Budget in response to the COVID-19 pandemic.

Change in Net Position
The City-wide governmental net position increase of $32 million was significantly up compared to the increase in 2019-20 and can be best explained by continued positive sales tax performance, federal funding assistance, and budget reduction strategies.

Business Type Activities
Business-type activities in the City-wide Financial Statements include the City’s four enterprise funds.

Enterprise funds are used to account for recreational and solid waste management operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing services and facilities to the general public on a continuing basis be financed or recovered primarily through user fees. The major proprietary funds section of this report provides more information on business-type results.

As shown in Table 3 and Table 4, the business-type net position totaled $11.5 million at June 30, 2021, an increase of $2.2 million, or 23.9%, from the prior year with unrestricted net position increasing $1.2 million and the net investment in capital assets increasing by $972,000. Business-type activities transferred in (net) $2.8 million, a decrease of $674,000 over the prior year. An increase in capital asset additions offset with $178,000 in depreciation expense resulted in a net increase of $972,000 over the prior year. Enterprise activities experienced an overall increase in assets due primarily to investment income which increased cash and cash equivalents. Liabilities for business-type activities remained consistent over the previous year, increasing by $24,000, or 0.5%.

In Table 4, revenues for all business-type activities decreased $1.7 million and operating expenses decreased by $3.4 million, primarily attributable the impacts set forth by the pandemic. 709
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
14 Table 3
Condensed Statement of Net Position at June 30
(in thousands)
Business Type Activities
2021 2020
Assets:

Cash and investments $ 12,961 $ 11,524
Other assets 577 348
Capital assets 2,091 1,119
Total assets 15,629 12,991
Deferred Outflows of Resources:

Related to pension 579 598
Related to OPEB 101 156
Total deferred outflows of
resources 680 754
Other Liabilities: 4,389 4,365
Total liabilities 4,389 4,365
Deferred Inflows of Resources:

Related to pension 21 51
Related to OPEB 434 75
Total deferred inflows of resources 455 126
Net Position:

Net Investment in capital assets 2,091 1,119
Unrestricted 9,374 8,135
Total net position $ 11,465 $ 9,254
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
15 Table 4
Condensed Statement of Activities for the Year Ended June 30 (in thousands)
Business Type Activities
Expenses 2021 2020
Resource recovery $ 1,670 $ 2,213
Blackberry farm 535 664
Cupertino sports center 2,183 2,884
Recreation programs 1,117 3,141
Total expenses 5,505 8,902
Revenues
Program revenues:

Charges for services 4,831 6,114
General revenues:

Investment earnings 36 462
Total revenues 4,867 6,576
Excess of revenues over expenses,
before extraordinary item and
transfers (638) (2,326)
Transfers 2,849 3,523
Change in net position 2,211 1,197
Beginning net position 9,254 8,057
Ending net position $ 11,465 $ 9,254

MAJOR GOVERNMENTAL FUNDS
General Fund
General Fund Revenues
General Fund actual revenues of $105.7 million ended $26.7 million, or 33.7%, above the original budget and $20.4 million, or 16.2%, below the final budget. Conservative estimates were applied to the original budget due to the pandemic. The final budget reflected a $30 million revenue estimate related to Vallco Town Center which will be carried forward and recognized over multiple years. Actual revenues were up $4.7 million or 5% when compared to 2019-20 actuals. Table 5 displays the variations in actual revenues, while Table 6 shows budgeted revenues compared to actuals. 711
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
16 Property taxes increased $1.7 million, or 6%, over the prior year due to continued roll-growth.

According to the 2020-2021 Assessor’s Annual Report for Santa Clara County, Cupertino’s net assessment roll growth increased nearly $1.8 billion, or 6.95%, from the prior year.

Sales tax increased $6.9 million, or 19%, over the prior year due to strong business and industry and county pool allocation growth due primarily to the impact of the pandemic state-wide.

Transient occupancy tax decreased $5.1 million, or 71%, due to the COVID-19 and the related shelterin-place orders which brought transient occupancy tax revenues to a near halt beginning in March 2020.

Charges for services remained relatively consistent in total, decreasing by $553,000 over the previous year. The decrease was primarily driven by a reduction of programming in the Parks & Recreation department.

Licenses and permits decreased $625,000, or 13%, due to decreased construction plan check building permits.

Table 5
Revenue Changes
General Fund, Fiscal 2021 vs. 2020
(in thousands)
Increase/(Decrease)
Fiscal 2021 From Fiscal 2020
Revenue by Source Amount % of Total Amount Percent
Taxes:

Property $ 28,278 27% $ 1,671 6%
Sales 42,581 40% 6,924 19%
Transient occupancy 2,141 2% (5,145) -71%
Utility user 3,074 3% (108) -3%
Franchise 3,368 3% (51) -1%
Other 2,640 2% 1,238 88%
Use of money & property 4,838 5% 760 19%
Intergovernmental 1,447 1% 699 93%
Licenses and permits 4,068 4% (625) -13%
Charges for services 11,882 11% (553) -4%
Fines and forfeitures 129 0% (199) -61%
Other 1,263 1% 45 4%
Total revenues $ 105,710 100% $ 4,657 5%
Other financing sources:

Transfers in $ 508 100% $ (9,504) -95%
Total other financing sources $ 508 100% $ (9,504) -95% 712
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
17 Table 6
Revenue, Budget and Actual Comparisons
General Fund 2020-21
(in thousands)
Budgeted Amounts Over/(Under)
Original Final Actual Final
Taxes:

Property $ 25,354 $ 25,354 $ 28,278 $ 2,924
Sales 20,911 33,523 42,581 9,058
Transient occupancy 7,547 2,047 2,141 94
Utility user 3,224 3,224 3,074 (150)
Franchise 3,280 3,280 3,368 88
Other 1,213 1,213 2,640 1,427
Use of money &
property 1,249 1,249 4,838 3,589
Intergovernmental 336 5,931 1,447 (4,484)
Licenses and permits 3,139 33,123 4,068 (29,055)
Charges for services 11,364 15,229 11,882 (3,347)
Fines and forfeitures 425 425 129 (296)
Other 1,004 1,507 1,263 (244)
Total revenues $ 79,046 $ 126,105 $ 105,710 $ (20,395)
Transfers in $ 15 $ 508 $ 508 $ -
General Fund Expenditures
Fiscal 2020-21 overall expenditures, at $68.7 million, were $4.1 million, or 6%, higher than last year.

This result came in $10.5 million, or 13.3%, under the final budget. Year-over-year and budget-versusactual results for General Fund programs are described below and in Tables 7 and 8.

Administration increased $599,000, or 9%, from 2019-20 and is primarily due to the Economic Development and Video functions moving from Community Development and Innovation & Technology departments, respectively.

Law Enforcement was higher by approximately $625,000, or 4%, which was the automatic increase in the existing contract with the Santa Clara County Sheriff’s Office triggered by increases in the lease and CalPERS costs.

Innovation & Technology decreased by $1.4 million, or 43%, over the prior year. This was driven by the Video division moving to the Administration department.

Administrative Services’ expenditures increased approximately $578,000, or 13%, over the prior year due to negotiated increases in salary and benefits. This increase also reflected the establishment of the internal audit function.
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
18 Parks & Recreation General Fund expenditures experienced a 38% decrease, or $2.9 million, across its programs. The majority of this decrease was due to COVID-19 and the inability to hold related program activities and events in FY 2020-21.

Community Development expenditures in the General Fund increased $1.3 million, or 15%, and resulted primarily from increases in cost allocation charges.

Public Works expenditures increased approximately $1.2 million or 6%. This is primarily represented by an increase in compensation and benefits. Various divisions and programs fluctuated over the prior year due to the addition and completion of one-time special projects.

Transfers out of the General Fund decreased from $30.9 million in 2019-20 to $15.1 million. This was due to a reduction in one-time transfers from the General Fund to the Capital Reserve.

Table 7
Expenditure Changes
General Fund, Fiscal 2021 vs. 2020
(in thousands)
Increase/(Decrease)
Fiscal 2021 From Fiscal 2020
Function/Program Amount % of Total Amount Percent
Administration $ 7,549 11% $ 599 9%
Law enforcement 14,776 22% 625 4%
Innovation and
technology 1,837 3% (1,386) -43%
Administrative
services 5,196 8% 578 13%
Parks and
recreation 4,788 7% (2,901) -38%
Community
development 9,679 14% 1,256 15%
Public works 20,025 29% 1,196 6%
Capital outlay 4,872 7% 4,167 591%
Total expenditures $ 68,722 100% $ 4,134 6%
Transfers out $ 15,149 189% $ (15,743) -51%
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
19 Table 8
Expenditure Changes
General Fund 2020-21
(in thousands)
Budgeted Amounts (Over)/Under
Function/Program Original Final Actual Final
Administration $ 9,183 $ 9,190 $ 7,549 $ 1,641
Law enforcement 14,792 14,792 14,776 16
Innovation and
technology 1,981 1,950 1,837 113
Administrative
services 4,956 5,314 5,196 118
Parks and recreation 6,805 6,725 4,788 1,937
Community
development 9,801 12,158 9,679 2,479
Public works 22,559 23,627 20,025 3,602
Capital outlay 503 5,498 4,872 626
Total expenditures $ 70,580 $ 79,254 $ 68,722 $ 10,532
Transfers out $ 9,949 $ 15,149 $ 15,149 $ -
General Fund - Fund Balance
The General Fund carried a June 30, 2021, ending fund balance of $96.9 million, up 30% or $22.4 million from beginning of the fiscal year. Loan receivables totaled $444,346 of non-spendable fund balance.

The City committed $19 million for general economic uncertainty and $127,891 for sustainability. The City assigned $4,906,139 million for encumbrances. $1,418,472 million was restricted for public access television purposes, $13,392 for CASp certification training, $217,551 for Public safety power shutoff, and $18,491,004 for the pension rate stabilization program (Section 115 Trust). $49,231,996 was classified as unassigned.

Transportation
The Transportation Special Revenue Fund carried a June 30, 2021, ending fund balance of $9,409,837, up 81.8%, or $4.2 million from the beginning of the fiscal year. In recent years this fund has accumulated fund balance year over year. The increase was primarily driven by a reduction of spending due to the pandemic as well as an accumulation of SB1 revenues which will be used for transportation projects in FY 2021-22.
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
20 Housing Development
The Housing Development Special Revenue Fund carried a June 30, 2021, ending fund balance of $7.9 million, down 6%, or $500,000, from the beginning of the fiscal year. The activities in this fund remained relatively consistent with the previous fiscal year.

Public Facilities Corporation
On September 29th, the City of Cupertino 2020A Certificates of Participation (2020 COPs) were successfully sold at very attractive interest rates in order to refund the City’s 2012 Certificates of Participation for debt service savings. The 2020 COPs were very well received by investors due in large part to the well-regarded Cupertino name, the top-notch AA+ rating, the sizable annual principal amounts and short maturity, and favorable supply and demand dynamics in the California municipal market.

At the end of the order period, there were nearly eight times as many orders as there were bonds for sale. This strong investor demand enabled the underwriter to further lower yields. The refunding ultimately generated net present value savings of approximately $3.14 million, or 11.61% of refunded par (compared to $2.26 million, or 8.36% of refunded par, when presented to Council on September 1 st) and a True Interest Cost of 0.72%. Savings to the City’s General Fund amounts to approximately $494,000 per year for the next 10 years, or almost $5 million in total savings. Fund balance as of June 30, 2021 was $63,350, substantially lower than the previous year, due to the reserve fund requirement being removed from the new issuance.

Capital Improvement Projects
The Capital Improvement Projects Capital Projects Fund carried a June 30, 2021, ending fund balance of $36,859,117, down 8.7%, or $3.5 million from the beginning of the fiscal year. During fiscal year 2020-21, a $5 million transfer in from the General Fund was received for purposes of fund capital-related projects. The following capital projects incurred the highest expenditures: Library Expansion and 2016 Bike Plan Implementation projects.

MAJOR PROPRIETARY FUNDS
Resource Recovery
The City has a solid waste franchise agreement with Recology that shares collection, landfill disposal, and recycling revenues and costs. This fund receives revenues from Recology with the funds going toward landfill costs, regulatory fees, and staffing costs that the City incurs to manage its solid waste, recycling, and household hazardous waste programs. Total operating revenue and expenses remained steady at $1.82 million and $1.7 million, respectively. Net position increased by approximately $164,000. The fund ended the year with $5.5 million in net position. 716
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
21 Recreation Programs
This enterprise operates the Quinlan Community Center, Monta Vista Recreation Center, McClellan Ranch, Creekside Park building, eight school sites, and various parks. Recreation Programs experienced the severe impacts of the pandemic with revenue and expense reductions of over 60%. These programs generated approximately $591,000 in revenues and program expenses of approximately $1.1 million.

This resulted in a net operating loss of $519,000. After the $1.7 million transfer from the General Fund, the fund ended up with an increase in net position of $1.1 million. The fund ended the year with a net position of $2.2 million.

Cupertino Sports Center
Tennis lesson, membership, fitness class and rent revenues of $1.5 million and decreased by $900,000 over last year and were also heavily impacted by COVID-19. As a result of the reduction in programming and availability, expenses decreased by $701,000 or 24%, resulting in a net operating loss of $361,000. This fund’s net position was $2.9 million as of June 30, 2021.

NONMAJOR PROPRIETARY FUNDS
Blackberry Farm
City employees, with a teaching professional contractor, staff the City-owned Blackberry Farm golf course and pro shop. Operating revenues increased 81% in 2020-21 from $338,000 to $611,000.

Operating expenses decreased by $129,000, or 19%, to $535,000 this year. The golf course’s operating loss decreased from $325,000 last year to a surplus of $77,000 this year. After a transfer in from the General Fund of $450,000 and $50,000 from the Capital Reserve, net position increased $577,000. As of June 30, 2021, this fund’s net position was $868,510.

CAPITAL ASSETS
At June 30, 2021, the City had $212.4 million, net of depreciation, invested in a broad range of capital assets used in governmental and business-type activities, as shown in Table 9 and in Note 5 to the Basic Financial Statements. This reflects the City’s continued investment into capital projects dedicated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City facilities, resulting in an increase in net capital assets of $11.5 million, after depreciation.
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
22 Table 9
Capital Assets, Net of Depreciation, at June 30
(in thousands)
2021 2020
Governmental Activities:

Land $ 64,787 $ 62,046
Easements 19,615 19,615
Construction in Progress 15,951 5,530
Buildings 14,578 16,015
Improvements other than buildings 17,753 17,483
Machinery and equipment 4,621 4,793
Roads, curbs, gutters, sidewalks, medians and
bridges 66,900 67,713
Streetlights 1,620 1,589
Storm drain structures and mains 3,831 4,263
Traffic signals 617 729
Total Governmental Activities 210,273 199,776
Business-Type Activities
Construction in Progress 125 -
Buildings 1,546 574
Improvements other than buildings 337 437
Machinery and equipment 83 108
Total Business-Type Activities 2,091 1,119
Total City $ 212,364 $ 200,895

DEBT ADMINISTRATION
On September 29, 2020, the City of Cupertino’s 2020A Certificates of Participation (2020 COPs) were successfully sold in order to refund the City’s 2012 Certificates of Participation for debt service savings.

The 2020 COPs were very well received by investors due in large part to the well-regarded Cupertino name, the top-notch AA+ rating, the sizable annual principal amounts and short maturity, and favorable supply and demand dynamics in the California municipal market. The refunding generated net present value savings of approximately $3.14 million, 11.61% of refunded par and a True Interest Cost of 0.72%.

Savings to the City’s General Fund amounts to approximately $494,000 per year for the next 10 years, or almost $5 million in total savings.

The June 30, 2021, outstanding principal of $19,900,000 is due to be paid off by June 1, 2030. More information can be found in Note 6 to the Basic Financial Statements and in the Public Facilities Corporation discussion earlier in this analysis.
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CITY OF CUPERTINO
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2021
23 CURRENTLY KNOWN FACTS AND CONDITIONS
The COVID-19 pandemic has had significant impacts on the City, both financially as well as operationally. Although revenues in transient occupancy tax and charges for services have experienced declines since the start of the pandemic, the City has put forth efforts to reduce its operating costs to mitigate the future impacts. Additionally, through the assistance of the CARES Act and American Rescue Plan Act, the City anticipates these funds will mitigate much of the revenue loss and fiscal impact of the pandemic over the short- and long-term. The City’s reserves remain intact and the City does not anticipate requiring the use of these Committed and Restricted funds.

Aside from the pandemic, the City is unaware of any other facts or conditions or decisions that are expected to have a significant effect on net position or results of operations.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Comprehensive Annual Financial Report is intended to provide a general overview of the City’s finances. Further information can be provided by the City of Cupertino Finance Department, 10300 Torre Avenue, Cupertino CA 95014, phone (408) 777-3280, or by the City website at www.cupertino.org.
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STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES

24. The Statement of Net Position and the Statement of Activities summarize the entire City's financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City's assets and all its liabilities, as well as all its revenues and expenses. This is known as the full accrual basis - the effect of all the City' s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

The Statement of Net Position reports the difference between the City's total assets and deferred outflows and the City's total liabilities and deferred inflows, including all the City's capital assets and all its long term debt.

The Statement of Net Position summarizes the financial position of all the City's Governmental Activities in a single column, and the financial position of all the City's Business-Type Activities in a single column; these columns are followed by a Total column which presents the financial position of the entire City.

The City's Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the City's Internal Service Funds service these Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund transactions and balances. The City's Business Type Activities include all of its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City's net position. It is also prepared on the full accrual basis, which means it includes all the City's revenues and all its expenses, regardless of when cash changes hands. This differs from the "modified accrual" basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.

The format of the Statement of Activities presents the City's expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues, that are revenues which are generated directly by these programs, are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City's general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City and the Cupertino Public Facilities Corporation, which is a legally separate component unit of the City because it is controlled by and financially accountable to the City.
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CITY OF CUPERTINO, CALIFORNIA

STATEMENT OF NET POSITION
June 30, 2021
See accompanying notes to financial statements.

25. Governmental Business-Type
Activities Activities Total
ASSETS
Cash and cash investments (Note 2) $ 167,810,281 $ 12,961,371 $ 180,771,652 Restricted cash and investments (Note 2) 18,499,337 18,499,337 - Receivables Accounts 12,546,432 135,982 12,682,414
Interest 17,148 - 17,148
Loans (Note 3) 4,691,177 - 4,691,177
Prepaid expenses and other assets 3,884 - 3,884
Net OPEB asset (Note 11) 8,957,782 441,219 9,399,001
Capital assets (Note 5):

Non-depreciable 100,352,704 125,331 100,478,035
Depreciable, net of
accumulated depreciation 109,920,783 1,965,199 111,885,982 Total assets 422,799,528 15,629,102 438,428,630

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 239,216 - 239,216
Related to pension (Note 10) 8,623,265 578,778 9,202,043 Related to OPEB (Note 11) 1,467,924 101,075 1,568,999
Total deferred outflows of resources 10,330,405 679,853 11,010,258

LIABILITIES
Accounts payable and accruals 7,139,329 367,435 7,506,764 Accrued payroll and benefits 1,872,821 289 1,873,110
Deposits 11,554,041 11,554,041 - Unearned revenue 4,892,867 833,213 5,726,080 Compensated absences (Note 1):

Due in one year 652,810 17,611 670,421
Due in more than one year 4,642,386 216,127 4,858,513
Claims payable (Note 9):

Due in one year 245,000 - 245,000
Due in more than one year 1,129,000 - 1,129,000
Long-term debt (Note 6):

Due in one year 1,880,000 - 1,880,000
Due in more than one year 21,467,737 21,467,737 - Net pension liability - noncurrent (Note 10) 45,558,458 2,954,562 48,513,020 Total liabilities 101,034,449 4,389,237 105,423,686

DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 10) 99,671 21,417 121,088
Related to OPEB (Note 11) 8,323,358 433,642 8,757,000
Total deferred inflows of resources 8,423,029 455,059 8,878,088 NET POSITION (Note 7)
Net investment in capital assets 186,503,116 2,090,530 188,593,646 Restricted for:

Special revenue projects 45,699,577 45,699,577 - Affordable housing 7,948,113 - 7,948,113 Debt service 63,350 - 63,350
Total restricted net position 53,711,040 53,711,040 - Unrestricted 83,458,299 9,374,129 92,832,428 Total net position $ 323,672,455 $ 11,464,659 $ 335,137,114 722
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CITY OF CUPERTINO, CALIFORNIA

STATEMENT OF ACTIVITIES
For the year ended June 30, 2021
See accompanying notes to financial statements.

26. Operating Capital BusinessCharges for Grants and Grants and Governmental Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities:

Administration $ 3,637,467 $ 2,387,412 $ - $ (1,250,055) - $ $ (1,250,055) - $ Law enforcement 15,211,646 550,051 156,727 (14,504,868) - (14,504,868) - Public and environmental affairs 1,721,729 - - (1,721,729) - (1,721,729) - Administrative services 5,358,183 5,232,679 - - (125,504) - (125,504) Recreation services 1,182,662 264,426 - - (918,236) - (918,236) Community development 11,495,788 5,736,587 618,292 (5,140,909) - (5,140,909) - Public works 41,870,240 3,966,206 5,223,190 1,792,376 (30,888,468) (30,888,468) - Interest on long - term debt 397,682 - - - (397,682) - (397,682) Total governmental activities 80,875,397 18,137,361 5,998,209 1,792,376 (54,947,451) (54,947,451) - Business-type activities:

Resource recovery 1,670,261 1,819,861 - - - 149,600 149,600 Blackberry farm 535,274 610,603 - - - 75,329 75,329
Cupertino sports center 2,182,900 1,810,194 - - - (372,706) (372,706) Recreation programs 1,117,244 590,871 - - - (526,373) (526,373) Total business-type activities 5,505,679 4,831,529 - - - (674,150) (674,150) Total $ 86,381,076 $ 22,968,890 $ 5,998,209 $ 1,792,376 (54,947,451) (674,150) (55,621,601) General revenues:

Taxes:

Property taxes 19,197,994 19,197,994 - Property tax in lieu of motor vehicle fee 9,079,845 - 9,079,845 Sales taxes 42,581,070 42,581,070 - Transient occupancy tax 2,141,058 - 2,141,058 Utility user tax 3,074,358 - 3,074,358
Franchise tax 3,368,286 - 3,368,286
Other taxes 3,022,333 - 3,022,333
Intergovernmental, unrestricted:

Motor vehicle license fee 43,675 - 43,675
Investment earnings 4,147,907 35,983 4,183,890
Miscellaneous 3,185,110 - 3,185,110
Transfers (Note 4) (2,849,000) 2,849,000 - Total general revenues and transfers 86,992,636 2,884,983 89,877,619 Change in Net Position 32,045,185 2,210,833 34,256,018
Net Position, beginning of year 291,627,270 9,253,826 300,881,096 Net Position, end of year $ 323,672,455 $ 11,464,659 $ 335,137,114 Program Revenues Changes in Net Position
Net (Expense) Revenue and
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FUND FINANCIAL STATEMENTS

27. In the Fund Financial Statements only individual major funds are presented, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year.

The funds described below were determined to be Major Funds by the City for fiscal 2020-20. Individual non-major funds may be found in the Supplementary section.

General Fund: The general fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund.

Transportation Special Revenue Fund: Accounts for the City's gas tax, vehicle registration fees and grant revenues and expenditures related to the maintenance and construction of City streets. All revenue in this fund is restricted exclusively for street and road purposes including related engineering and administrative expenditures.

Housing Development Special Revenue Fund: Accounts for the Federal Housing and Community Development Grant Program activities administered through the County. Monies collected from developers that mitigate the impact of housing needs are also included. Monies in this fund are governed by the program's rules.

Public Facilities Corporation Debt Service Fund: This fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of the Civic Center, Library, Wilson Park, Memorial Park, and other City facilities.

Capital Improvement Projects Capital Projects Fund: This fund accounts for activities related to the acquisition or construction of major capital facilities. 724
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GOVERNMENTAL FUNDS

BALANCE SHEET
June 30, 2021
See accompanying notes to financial statements.

28. Public Capital
Facilities Improvement
Corporation Projects Nonmajor Total
Housing Debt Capital Governmental Governmental
General Transportation Development Service Fund Projects Fund Funds Funds ASSETS
Cash and investments (Note 2) $ 87,894,638 $ 8,816,300 $ 7,345,602 $ 55,017 $ 39,673,656 $ 16,315,922 $ 160,101,135 Restricted cash and investments (Note 2) 18,491,004 - - 8,333 - - 18,499,337 Receivables:

Accounts 9,919,781 683,815 259,168 - 1,661,507 22,161 12,546,432 Interest 17,148 - - - - - 17,148
Loans (Note 3) 444,346 - 4,246,831 - - - 4,691,177
Due from other funds (Note 4) 539,204 - - - - - 539,204 Advances to other funds (Note 4) 3,000,000 - - - - - 3,000,000 Other assets 3,884 - - - - - 3,884
Total assets $ 120,310,005 $ 9,500,115 $ 11,851,601 $ 63,350 $ 41,335,163 $ 16,338,083 $ 199,398,317

LIABILITIES
Accounts payable and accruals $ 5,139,557 $ 90,278 $ 191,368 $ - $ 1,476,046 $ 9,705 $ 6,906,954 Accrued payroll and benefits 1,872,749 - - - - - 1,872,749 Advances from other funds (Note 4) - - - - 3,000,000 - 3,000,000 Deposits 11,554,041 - - - - - 11,554,041
Unearned revenue 4,892,867 - - - - - 4,892,867
Total liabilities 23,459,214 90,278 191,368 - 4,476,046 9,705 28,226,611

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - loans - - 3,712,120 - - - 3,712,120 Total deferred inflows of resources - - 3,712,120 - - - 3,712,120 FUND BALANCES (Note 7)
Nonspendable 3,444,346 - - - - - 3,444,346
Restricted 20,140,419 9,409,837 7,948,113 63,350 - 16,149,321 53,711,040 Committed 19,127,891 - - - - - 19,127,891
Assigned 4,906,139 - - - 36,859,117 179,057 41,944,313
Unassigned 49,231,996 - - - - - 49,231,996
Total fund balances 96,850,791 9,409,837 7,948,113 63,350 36,859,117 16,328,378 167,459,586 Total liabilities, deferred inflows
of resources and fund balances $ 120,310,005 $ 9,500,115 $ 11,851,601 $ 63,350 $ 41,335,163 $ 16,338,083 $ 199,398,317 Special Revenue Funds
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RECONCILIATION OF GOVERNMENTAL FUNDS

BALANCE SHEET TO STATEMENT OF NET POSITION
June 30, 2021
See accompanying notes to financial statements.

29. Total fund balances reported on the governmental funds balance sheet $ 167,459,586 206,927,675
6,313,071
3,712,120
Long-term debt (23,347,737)
Net pension liability (42,634,977)
Net OPEB asset 8,331,162
Deferred loss on refunding 239,216
Pension-related deferred outflows of resources 8,082,073 Pension-related deferred inflows of resources (96,065)
OPEB-related deferred outflows of resources 1,360,524
OPEB-related deferred inflows of resources (7,753,657)
Compensated absences (4,920,536)
Net position for governmental activities $ 323,672,455
The liabilities, deferred inflows of resources and deferred outflows of resources are not related to the current period and therefore are not reported in the governmental funds:

Capital assets used in governmental activities are not current assets or financial resources and therefore are not reported in the governmental funds.

Internal service funds are used by management to charge the costs of activities such as information technology, insurance, equipment acquisition and maintenance, and certain employee benefits to governmental funds. The assets and liabilities of the internal service funds are therefore included in the governmental activities of the statement of net position.

Certain receivables are not available to pay for current period expenditures and therefore are deferred in the governmental funds.

Amounts reported for governmental activities in the statement of net position are different from those reported in the governmental funds because of the following:
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CITY OF CUPERTINO, CALIFORNIA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the year ended June 30, 2021
See accompanying notes to financial statements.

30. Public Capital
Facilities Improvement
Corporation Projects Nonmajor Total
Housing Debt Capital Governmental Governmental
General Transportation Development Service Fund Projects Fund Funds Funds Revenues
Taxes $ 82,081,611 $ - $ 197,661 $ - $ - $ 185,672 $ 82,464,944 Use of money and property 4,838,319 24,106 23,553 332 (470,353) 32,013 4,447,970 Intergovernmental 1,446,593 3,481,620 559,010 - 2,347,037 - 7,834,260 Licenses and permits 4,068,238 - - - - - 4,068,238
Charges for services 11,882,349 8,970 7,269 - - 1,702,714 13,601,302 Fines and forfeitures 129,394 - - - - 5,065 134,459
Other revenue 1,263,174 1,921,336 - - - 600 3,185,110
Total revenues 105,709,678 5,436,032 787,493 332 1,876,684 1,926,064 115,736,283 Expenditures
Current:

Administration 7,549,386 - - - - - 7,549,386
Law enforcement 14,776,409 - - - - 14,776,409 - Public and environmental affairs 1,836,725 - - - - - 1,836,725 Administrative services 5,196,299 - - - - - 5,196,299
Recreation services 4,787,914 - - - - - 4,787,914
Community development 9,679,182 - 1,498,508 - - 11,177,690 - Public works 20,025,442 3,164,395 - - - 1,378,318 24,568,155 Capital outlay 4,872,485 2,036,314 - - 9,812,205 2,762,941 19,483,945 Debt service:

Principal - - - 2,140,000 - - 2,140,000
Interest and fiscal charges - - - 798,747 - - 798,747
Total expenditures 68,723,842 5,200,709 1,498,508 2,938,747 9,812,205 4,141,259 92,315,270 Excess (deficiency) of revenues
over expenditures 36,985,836 235,323 (711,015) (2,938,415) (7,935,521) (2,215,195) 23,421,013 Other financing sources (uses)
Proceeds from debt issuance - - 22,040,000 - - 22,040,000 - Proceeds from debt issuance premium - - - 3,878,704 - - 3,878,704 Payments to refunding agent - - (27,279,118) - - (27,279,118) - Transfers in (Note 4) 507,831 4,000,000 200,000 3,169,138 5,000,000 12,876,969 - Transfers (out) (Note 4) (15,148,689) - - (492,831) (559,449) (15,000) (16,215,969) Total other financing sources (uses) (14,640,858) 4,000,000 200,000 1,315,893 4,440,551 (15,000) (4,699,414) Net change in fund balances 22,344,978 4,235,323 (511,015) (1,622,522) (3,494,970) (2,230,195) 18,721,599 Beginning fund balances 74,505,813 5,174,514 8,459,128 1,685,872 40,354,087 18,558,573 148,737,987 Ending fund balances $ 96,850,791 $ 9,409,837 $ 7,948,113 $ 63,350 $ 36,859,117 $ 16,328,378 $ 167,459,586 Special Revenue Funds
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CITY OF CUPERTINO, CALIFORNIA

GOVERNMENTAL FUNDS
RECONCILIATION OF NET CHANGES IN FUND BALANCES –

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2021
See accompanying notes to financial statements.

31. Total net changes in fund balances reported on the
governmental funds balance sheet $ 18,721,599
Amounts reported for governmental activities in the statement of activities are different from those reported in the governmental funds because of the following:

Capital outlay 18,448,448
Depreciation expense (7,641,656)
Net retirements 1
2,140,000
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position.

Bonds issued (22,040,000)
Premium on bonds issued (3,878,704)
Payment to escrow agent 27,279,118
Amortization of premium 430,967
Amortization of deferred loss on refunding (29,902)
Compensated absences (58,919)
Net pension liability (2,146,205)
Net OPEB liability (asset) 10,061,292
Pension-related deferred outflows of resources (396,067) Pension-related deferred inflows of resources 625,738
OPEB-related deferred outflows of resources (1,043,279) OPEB-related deferred inflows of resources (6,780,870)
(1,646,376)
Change in net position of governmental activities $32,045,185 Internal service funds are used by management to charge the costs of activities such as information technology, insurance, equipment acquisition and maintenance, and certain employee benefits to governmental funds. The portion of the net expense of these internal service funds arising out of their transactions with governmental funds is reported with governmental activities because they service those activities.

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets are capitalized and depreciated over their estimated useful lives, which is reported as depreciation expense. Expenditures for capital assets reported as:

Long term debt principal payments are reported as expenditures in the governmental funds but are not reported as expenses in the statement of activities.

The changes in the amounts below do not provide or require the use of current financial resources and therefore are not reported as revenues or expenditures in the governmental funds:

The schedule below reconciles the net changes in fund balances reported on the governmental funds statement of revenues, expenditures and changes in fund balances, which measures only changes in current assets and current liabilities on the modified accrual basis, with the change in net position of governmental activities reported in the statement of activities, which is prepared on the full accrual basis. 728
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CITY OF CUPERTINO, CALIFORNIA

GENERAL FUND

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
For the year ended June 30, 2021
See accompanying notes to financial statements.

32. Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $ 61,528,654 $ 68,640,655 $ 82,081,611 $ 13,440,956 Use of money and property 1,249,010 1,249,010 4,838,319 3,589,309 Intergovernmental 335,567 5,931,334 1,446,593 (4,484,741) Licenses and permits 3,139,473 33,123,003 4,068,238 (29,054,765) Charges for services 11,363,564 15,229,233 11,882,349 (3,346,884) Fines and forfeitures 425,000 425,000 129,394 (295,606) Other revenue 1,003,857 1,507,457 1,263,174 (244,283)
Total revenues 79,045,125 126,105,692 105,709,678 (20,396,014) Expenditures
Current
Administration 9,183,155 9,190,291 7,549,386 1,640,905
Law enforcement 14,792,448 14,792,448 14,776,409 16,039 Public and environmental affairs 1,981,299 1,949,807 1,836,725 113,082 Administrative services 4,955,568 5,314,437 5,196,299 118,138 Recreation services 6,804,768 6,725,248 4,787,914 1,937,334 Community development 9,801,449 12,157,549 9,679,182 2,478,367 Public works 22,558,616 23,627,089 20,025,442 3,601,647 Capital outlay 502,500 5,497,792 4,872,485 625,307
Total expenditures 70,579,803 79,254,661 68,723,842 10,530,819 Excess of revenues
over expenditures 8,465,322 46,851,031 36,985,836 (9,865,195) Other financing sources (uses)
Transfers in 15,000 507,832 507,831 (1)
Transfers (out) (9,948,689) (15,148,689) (15,148,689) - Total other financing sources (uses) (9,933,689) (14,640,857) (14,640,858) (1) Net change in fund balance $ (1,468,367) $ 32,210,174 22,344,978 $ (9,865,196) Beginning fund balance 74,505,813
Ending fund balance $ 96,850,791
Budgeted Amounts
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CITY OF CUPERTINO, CALIFORNIA

TRANSPORTATION SPECIAL REVENUE FUND

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
For the year ended June 30, 2021
See accompanying notes to financial statements.

33. Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Use of money and property $ - $ 24,106 - $ $ 24,106
Intergovernmental 2,898,325 3,880,625 3,481,620 (399,005) Charges for services 3,978 3,978 8,970 4,992
Other revenue 87,057 1,443,723 1,921,336 477,613
Total revenues 2,989,360 5,328,326 5,436,032 107,706
Expenditures
Current
Public works 3,875,600 3,700,019 3,164,395 535,624
Capital outlay 1,000,000 4,565,929 2,036,314 2,529,615
Total expenditures 4,875,600 8,265,948 5,200,709 3,065,239 Deficiency of revenues
under expenditures (1,886,240) (2,937,622) 235,323 3,172,945 Other financing sources (uses)
Transfers in 4,000,000 4,000,000 4,000,000 - Total other financing sources (uses) 4,000,000 4,000,000 4,000,000 - Net change in fund balance $ 2,113,760 $ 1,062,378 4,235,323 $ 3,172,945 Beginning fund balance 5,174,514
Ending fund balance $ 9,409,837
Budgeted Amounts
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CITY OF CUPERTINO, CALIFORNIA

HOUSING DEVELOPMENT SPECIAL REVENUE FUND

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
For the year ended June 30, 2021
See accompanying notes to financial statements.

34. Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes $ 3,025,898 $ 3,025,898 $ 197,661 $ (2,828,237)
Use of money and property 3,300 3,300 23,553 20,253
Intergovernmental 397,270 951,209 559,010 (392,199)
Charges for services - - 7,269 7,269
Total revenues 3,426,468 3,980,407 787,493 (3,192,914)
Expenditures
Current
Community development 1,083,266 1,951,844 1,498,508 453,336 Total expenditures 1,083,266 1,951,844 1,498,508 453,336 Deficiency of revenues
under expenditures 2,343,202 2,028,563 (711,015) (2,739,578) Other financing sources (uses)
Transfers in 200,000 - 200,000 - Total other financing
sources (uses) 200,000 - 200,000 - Net change in fund balance $ 2,343,202 $ 2,228,563 (511,015) $ (2,739,578) Beginning fund balance 8,459,128
Ending fund balance $ 7,948,113
Budgeted Amounts
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MAJOR PROPRIETARY FUNDS

35. Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City has identified the funds below as major proprietary funds for fiscal 2020 - 21.

Resources Recovery Fund: This fund accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform these services.

Recreation Programs Fund: This fund accounts for activities of the City's community centers and park facilities.

Cupertino Sports Center Fund: This fund accounts for the operation and maintenance of the Cupertino Sports Center.
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CITY OF CUPERTINO, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2021
See accompanying notes to financial statements.

36. Governmental
Cupertino Nonmajor Activities -
Resources Recreation Sports Enterprise Internal Service Recovery Programs Center Fund Totals Funds
ASSETS
Current assets
Cash and cash investments (Note 2) $ 6,369,452 $ 2,818,076 $ 2,636,289 $ 1,137,554 $ 12,961,371 $ 7,709,146 Accounts receivable 132,839 1,863 1,280 135,982 - - Total current assets 6,502,291 2,819,939 2,637,569 1,137,554 13,097,353 7,709,146 Noncurrent assets
Net OPEB asset (Note 11) 127,693 134,939 178,587 441,219 - 626,620 Capital assets (Note 5):

Nondepreciable 88,031 - 37,300 125,331 - - Depreciable, net of - accumulated depreciation 3,827 560,087 1,377,579 23,706 1,965,199 3,345,812 Total noncurrent assets 131,520 783,057 1,593,466 23,706 2,531,749 3,972,432 Total assets 6,633,811 3,602,996 4,231,035 1,161,260 15,629,102 11,681,578

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 10) 217,859 179,490 122,119 59,310 578,778 541,192 Related to OPEB (Note 11) 42,749 24,385 25,820 8,121 101,075 107,400 Total deferred outflows of resources 260,608 203,875 147,939 67,431 679,853 648,592

LIABILITIES
Current liabilities
Accounts payable and accruals 73,514 162,336 120,003 11,582 367,435 232,375 Accrued payroll and benefits 289 - - - 289 72
Due to other funds (Note 4) - - - - 539,204 - Compensated absences (Note 1): 5,219 7,907 4,274 211 17,611 46,188 Claims payable (Note 9) - - - - 245,000 - Unearned revenue 278,161 - 496,440 58,612 833,213 - Total current liabilities 79,022 448,404 620,717 70,405 1,218,548 1,062,839 Noncurrent liabilities
Compensated absences (Note 1) 64,045 97,037 52,451 2,594 216,127 328,472 Claims payable (Note 9) - - - - 1,129,000 - Net pension liability (Note 10) 1,107,110 925,796 643,636 278,020 2,954,562 2,923,481 Total noncurrent liabilities 1,171,155 1,022,833 696,087 280,614 3,170,689 4,380,953 Total liabilities 1,250,177 1,471,237 1,316,804 351,019 4,389,237 5,443,792

DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 10) 9,651 4,448 2,852 4,466 21,417 3,606 Related to OPEB (Note 11) 136,528 130,506 161,912 4,696 433,642 569,701 Total deferred inflows of resources 146,179 134,954 164,764 9,162 455,059 573,307 NET POSITION (Note 7)
Net investment in capital assets 3,827 648,118 1,414,879 23,706 2,090,530 3,345,812 Unrestricted 5,494,236 1,552,562 1,482,527 844,804 9,374,129 2,967,259 Total Net Position $ 5,498,063 $ 2,200,680 $ 2,897,406 $ 868,510 $ 11,464,659 $ 6,313,071 Business-type Activities - Enterprise Funds
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CITY OF CUPERTINO, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN NET POSITION
For the year ended June 30, 2021
See accompanying notes to financial statements.

37. Governmental
Cupertino Nonmajor Activities -
Resources Recreation Sports Enterprise Internal Service Recovery Programs Center Fund Totals Funds
Operating revenues
Charges for services $ 1,804,945 $ 508,838 $ 1,537,387 $ 564,126 $ 4,415,296 $ 4,689,465 Other 14,916 82,033 272,807 46,477 416,233 9,799
Total operating revenue 1,819,861 590,871 1,810,194 610,603 4,831,529 4,699,264 Operating expenses
Salaries and benefits 344,248 462,437 491,686 107,567 1,405,938 3,604,711 Materials and supplies 301,234 320,895 241,872 174,183 1,038,184 1,321,229 Contractual services 1,021,465 229,254 1,382,540 250,692 2,883,951 201,964 Insurance and claims and premium - - - - 862,225 - Depreciation (Note 5) 3,314 104,658 66,802 2,832 177,606 968,791 Total operating expenses 1,670,261 1,117,244 2,182,900 535,274 5,505,679 6,958,920 Operating income (loss) 149,600 (526,373) (372,706) 75,329 (674,150) (2,259,656) Nonoperating revenues
Investment Income 14,795 7,190 11,915 2,083 35,983 33,299 Gain on sale of capital assets - - - - 89,981 - Total nonoperating revenues 14,795 7,190 11,915 2,083 35,983 123,280 Income (loss) before transfers 164,395 (519,183) (360,791) 77,412 (638,167) (2,136,376) Transfers in (Note 4) 1,664,000 - 685,000 500,000 2,849,000 490,000 Changes in net position 164,395 1,144,817 324,209 577,412 2,210,833 (1,646,376) Net position - beginning of year 5,333,668 1,055,863 2,573,197 291,098 9,253,826 7,959,447 Net position - end of year $ 5,498,063 $ 2,200,680 $ 2,897,406 $ 868,510 $ 11,464,659 $ 6,313,071 Business-type Activities - Enterprise Funds
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CITY OF CUPERTINO, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
For the year ended June 30, 2021
See accompanying notes to financial statements.

38. Governmental
Cupertino Nonmajor Activities -
Resources Recreation Sports Enterprise Internal Service Recovery Programs Center Fund Totals Funds
Cash flows from operating activities
Cash received from customers $ 2,035,309 $ 632,323 $ 2,026,745 $ 646,130 $ 5,340,507 $ 4,706,264 Cash payments to suppliers for
goods and services (1,417,480) (687,146) (1,513,828) (442,996) (4,061,450) (1,634,879) Cash payments to employees for salaries
and benefits (447,491) (506,804) (512,572) (110,164) (1,577,031) (3,538,193) Cash payments for judgment and claims - - - - (1,015,225) - Net cash provided (used) by operating activities 170,338 (561,627) 345 92,970 (297,974) (1,482,033) Cash flows from noncapital financing activities
Transfers in 1,664,000 - 685,000 500,000 2,849,000 490,000 Cash flows from noncapital financing activities 1,664,000 - 685,000 500,000 2,849,000 490,000 Cash flows from capital and related financing activities Acquisition of capital assets (88,031) - (1,061,223) (1,149,254) - (661,449) Sale of capital assets - - - - 91,758 - Cash flows from capital and related (88,031) - (1,061,223) (1,149,254) - (569,691) financing activities
Cash Flows from investing activities
Interest received 14,795 7,190 11,915 2,083 35,983 33,299 Cash flows from investing activities 14,795 7,190 11,915 2,083 35,983 33,299 Net cash flows 185,133 1,021,532 (363,963) 595,053 1,437,755 (1,528,425) Cash and investments at beginning of year 6,184,319 1,796,544 3,000,252 542,501 11,523,616 9,237,571 Cash and investments at end of year $ 6,369,452 $ 2,818,076 $ 2,636,289 $ 1,137,554 $ 12,961,371 $ 7,709,146 Reconciliation of operating income (loss) to
to net cash provided by operating activities:

Operating income (loss) $ 149,600 $ (526,373) $ (372,706) $ 75,329 $ (674,150) $ (2,259,656) Adjustments to reconcile operating income to
net cash provided by operating activities:

Depreciation 3,314 104,658 66,802 2,832 177,606 $ 968,791 Change in assets, deferred outflows of
resources, liabilities and deferred inflows
of resources
Accounts receivable 215,448 (1,864) (1,220) 212,364 - 7,000 Due to retirement system 29,108 32,804 27,598 2,157 91,667 147,907 Due to OPEB system (43,549) (37,798) (46,898) (4,735) (132,980) (169,875) Accounts payable and accruals (94,781) (136,997) 110,584 (18,121) (139,315) (111,686) Unearned revenue 43,316 - 217,771 35,527 296,614 - Compensated absences (88,802) (39,373) (1,586) (19) (129,780) 88,486 Claims payable - - - - (153,000) - Net cash provided (used) by operating activities $ 170,338 $ (561,627) $ 345 $ 92,970 $ (297,974) $ (1,482,033) Business-type Activities - Enterprise Funds
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

39. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity: The City of Cupertino, California (the City) was incorporated on October 3, 1955, under the laws of the State of California. The City operates under a Council - City Manager form of government and provides services through the following departments: Administrative Services, Community Development, City Manager, Parks and Recreation, Public and Environmental Affairs, and Public Works.

Fire services are provided by the Santa Clara County Fire District, and the City contracts with the Santa Clara County Sheriff’s Department for police services, and with Recology for garbage and recycling services.

The accompanying basic financial statements include all funds and boards and commissions that are controlled by the City Council. The basic financial statements include the City's blended component unit entity for which the City is considered to be financially accountable. A blended component unit, although a legally separate entity, is in substance, part of the City's operations and so data from this unit is combined with the City.

Blended Component Unit: The Cupertino Public Facilities Corporation (the Corporation) was incorporated in May 1986, under the Nonprofit Public Benefit Corporation Law of the State of California. The Corporation was organized as a nonprofit corporation solely for the purpose of assisting the City in the acquisition, construction, and financing of public improvements which are of public benefit to the City. The Corporation, after acquiring certain properties from the City, leases these back to the City. The lease money provides the funds for the debt service for the Certificates of Participation issued by the Corporation to acquire the properties. The Corporation does not issue separate financial statements, since it is reported separately in the City's basic financial statements.

Measurement Focus, Basis of Accounting and Basis of Presentation: The City's basic financial statements are prepared in conformity with accounting principles generally accepted in the United States. The Government Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States.

Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government and distinguish between the governmental and businesstype activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities.

Expenses include direct and indirect types. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses such as depreciation, information technology, insurance and equipment replacement are included in expenses for individual activities and functions. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital needs of a particular program. Revenues that are not classified as program revenues, including taxes, are presented as general revenues. Program revenues and direct expenses related to interfund services are included and indirect expenses funded by interfund transfers are excluded from the Statement of Activities. The Statement of Net Position eliminates interfund balances between governmental funds and interfund balances between proprietary funds. 736
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

40. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Financial Statements: The fund financial statements provide information about the City's funds, including blended component units. Separate statements for each fund category — governmental and proprietary — are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

Major Funds: The City's major governmental and enterprise funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund type.

Major funds are defined as funds, which have either assets (plus deferred outflows), liabilities (plus deferred inflows), revenues or expenditures in excess of 10 percent of their fund-type total and five percent of the aggregate total for both governmental funds and enterprise funds. The General Fund is always a major fund. The City may select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:
 The General Fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund.  The Transportation Special Revenue Fund accounts for the City's gas tax, vehicle registration fees and grant revenues and expenditures related to the maintenance and construction of City streets. All revenue in this fund is restricted exclusively for street and road purposes including related engineering and administrative expenses. Management considers this fund qualitatively major and has elected to present this fund as such, even if mathematically it does not qualify per applicable GASB requirements.  The Housing Development Special Revenue Fund accounts for the Federal Housing and Community Development Grant Program activities administered through the County. Monies collected from developers that mitigate the impact of housing needs are also included. Monies in this fund are governed by the program's rules.
 The Public Facilities Corporation Debt Service Fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of City Hall, Library, Wilson Park, Memorial Park, and other City facilities.
 Capital Improvement Projects Capital Projects Fund Accounts for activities related to the acquisition or construction of major capital facilities.

The City reports the following enterprise funds as major funds in the accompanying financial statements:
 The Resources Recovery Fund accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform these services.  The Recreation Programs Fund accounts for activities of the City's community centers and park facilities.
 The Cupertino Sports Center Fund accounts for activities of the City’s sports center facility. 737
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

41. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City also reports the following fund types:
 Internal Service Funds. These funds account for workers' compensation, management information systems maintenance and replacement, equipment maintenance and replacement, retiree health costs, accrued leave payouts, and long-term disability coverage which are provided to other departments on a cost-reimbursement basis.

Basis of Accounting: The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt which are recognized as expenditures to the extent the City has provided financial resources to a debt service fund for payment of these liabilities that mature early in the following year. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from long-term debt and acquisitions under capital leases are reported as other financing sources.

Unearned revenues are considered on a full accrual basis, while unavailable revenues are based on the modified accrual measure.

Property taxes, transient occupancy taxes, utility taxes, franchise taxes, interest and special assessments are susceptible to accrual. Other receipts and taxes are recognized as revenue when the cash is received.

Sales taxes collected and held by the state at year end on behalf of the City are also recognized as revenue.

Sales tax consultant payments which are contingent on revenues collected are netted against the related revenues.

Under the terms of grant agreements, the City may fund certain programs with a combination of cost reimbursement grants, categorical block grants, and general revenue. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. Grant revenues are recognized after eligibility and billing occurs, but may be a deferred inflow if not received within sixty days of year-end. Because of the cost-reimbursement and recognition nature of some grants, certain capital project funds may carry deficit fund balances until billing and receipt of grants. The City may also front the capital outlays with cash advances from other funds.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied or assessed.

Revenue from grants is recognized as described above. Entitlement and donation revenues are recognized when cash is received.
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

42. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Budgetary Practices: The budget of the City is a detailed operating plan which identifies estimated costs and results in relation to estimated revenues. The budget includes (1) the programs, projects, services and activities to be provided during the fiscal year; (2) estimated revenue available to finance the operating plan; and (3) the estimated spending requirements of the operating plan. The budget represents a process through which policy decisions are made, implemented and controlled. The City prohibits expending funds for which there is no legal appropriation. Operating appropriations lapse at fiscal year end.

In May of each year, the City Manager submits to the City Council a proposed budget for the fiscal year beginning July 1. Public hearings on the proposed budget are held during the month of June and the budgets for all fund types are legally adopted by Resolution prior to June 30. Original budget amounts are presented on the accompanying budgetary statements include these legally adopted amounts.

The City's legal level of budgetary control is at the functional level for the general fund and at the fund level for other funds. The City Manager is responsible for controlling the City's expenditures in accordance with the adopted budget. The City Manager is authorized to administer and transfer appropriations between budget accounts within the operating budget when in his opinion such transfers become necessary for administrative purposes. Any revision which increases total appropriations must be approved by the City Council. Requests for additional personnel or capital outlay also require the approval of the City Council.

Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles. Budget information is presented for the general, special revenue and debt service funds only.

Capital projects funds are budgeted on a long-term project-by-project basis and, hence, budgets for these funds are not presented in the basic financial statements. The Traffic Impact Fund does not have a legally adopted budget. During the fiscal year, no funds had expenditures which exceeded appropriations.

Cash and Investments: The City pools its cash resources, consisting of cash and investments, of all funds for investment except for restricted funds generally held by an outside fiscal agent. Cash amounts are reported net of outstanding warrants. Investments are stated at fair value, except for money market mutual funds which are reported at amortized cost. Adjustments to fair value, as well as dividend and interest income received is recorded by the City in its governmental funds in the Use of money and property caption while proprietary funds report these items as Investment income.

Capital Assets: Capital assets are recorded at cost or estimated historical cost if purchased or constructed.

Donated capital assets are recorded at their estimated acquisition value on the date donated. Public domain (infrastructure) capital assets consisting of roads, bridges, curbs, gutters, medians, sidewalks, drainage and lighting systems have been capitalized and depreciated. Capital assets are defined as assets with an initial individual cost of more than $5,000 for general capital assets and $100,000 for intangible assets.

Depreciation is recorded using the straight-line method over the following useful lives:

Buildings 15 – 25 years
Improvements 10 – 15 years
Vehicles 4 – 10 years
Street equipment 3 – 20 years
Water equipment 3 – 50 years
Office equipment 3 – 5 years
Road, curbs, gutters, sidewalks, medians and bridges 30 – 40 years Streetlights 20 years
Storm drain structure and mains 40 years
Traffic signals 20 years
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

43. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Major outlays for capital assets and improvements are capitalized as projects are constructed. For enterprise funds, interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Some capital assets may be acquired using federal and state grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.

Claims and Judgment Payable: Claims and judgments payable are accrued when the liability is incurred and the amount can be reasonably estimated. Claims and judgments payable are recorded in an internal service fund for workers' compensation and long-term disability, and other claims and judgments are recorded in the General Fund or enterprise funds, as appropriate.

Compensated Absences: Compensated absences comprise vested accumulated vacation and sick leave.

The City's liability for compensated absences is recorded in governmental or business-type activities as appropriate. The liability for compensated absences is determined annually. For all governmental funds, amounts expected to be "permanently liquidated," such as what is due to be paid because of a realized employment action, are recorded as fund liabilities; the long-term portion is recorded in the Statement of Net Position.

Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences are liquidated primarily by the General Fund, using the Compensated Absences and Long-Term Disability internal service fund to account for termination payouts.

The changes in compensated absences for the year ended June 30, 2021 were as follows:

Governmental Business-Type
Activities Activities Total
Beginning balance $ 5,147,792 $ 363,518 $ 5,511,311
Additions 824,175 (102,841) 721,334
Reductions (676,771) (26,940) (703,711)
Ending balance $ 5,295,199 $ 233,737 $ 5,528,934
Current portion $ 652,810 $ 17,611 $ 670,421
Non-current portion $ 4,642,386 $ 216,127 $ 4,858,513
Deferred Outflows/Inflows of Resources: In addition to assets, the statement of financial position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports differences between expected and actual experience, changes in pension and OPEB assumptions, loss on pension and OPEB investments, and contributions made subsequent to the measurement date as well. Differences between expected and actual experience and changes in pension and OPEB plan assumptions are deferred and amortized over the average of the expected remaining service lives of employees who are provided with benefits through the pension and OPEB plans. Loss on pension and OPEB investments are deferred and amortized over five years. Employer contributions made subsequent to the measurement date and change in proportionate share are deferred and recognized as a reduction of the net pension and net OPEB liability in the subsequent reporting year. 740
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

44. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In addition to liabilities, the statement of financial position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Under the accrual basis of accounting differences between expected and actual experience are deferred and amortized over the average of the expected remaining service lives of all employees who are provided with benefits through the pension and OPEB plans.

Property Tax Calendar: All property taxes are levied and collected by the County of Santa Clara. Secured taxes are levied on July 1, are due in two installments on November 1 and February 1 and become delinquent after December 10 and April 10. Unsecured taxes are levied on July 1 and become delinquent on August 31. The lien date for secured and unsecured property taxes is January 1.

The City, in fiscal year 1993-94, adopted an alternative method of property tax distribution (the "Teeter Plan"). Under this method, the City receives 100 percent of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives remittances as a series of advances made by the County during the year.

Interfund Transactions: Transactions constituting reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.

Statement of Cash Flows: For purposes of reporting cash flows for the City's proprietary funds, pooled cash and investments are considered cash equivalents as the proprietary funds can access pooled cash and investments in a manner similar to a demand deposit account.

Prepaid Items: Prepaid items are reported under the consumption method, which recognizes the expenditures/expense in the period associated with the service rendered or goods consumed.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates.

Implementation of Governmental Accounting Standards Board (GASB) Pronouncements: Management adopted the provisions of the following Governmental Accounting Standards Board (GASB) Statements, which became effective during the year ended June 30, 2021.

In January 2017, the GASB issued Statement 84, Fiduciary Activities. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. This Statement is now effective for the City’s fiscal year ended June 30, 2021. The implementation of this standard specifically impacted the financial statement presentation of the fiduciary fund financial statements. The City participates in the Public Agency Retirement System (PARS) Public Agencies Post Retirement Health Care Plan Trust Program (PARS Trust), an agent-multiple employer irrevocable trust established to fund other postemployment benefits. 741
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

45. NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The PARS Trust functions for the benefit of the employees. The City funds all PARS Trust costs based on actuarial valuations for its specific portion of the PARS Trust as opposed to the PARS Trust as a whole.

Previously, the City reported in its fiduciary fund financial statements the PARS Trust that pertains to the City as well as OPEB benefit payments of the Plan initiated by the City but reimbursed to the PARS Trust in accordance with GASB Statement 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as the City reviewed the PARS Trust separately issued financial statements and determined that inclusion of the City OPEB Plan component unit financial statements and related disclosures as a City trust fund were necessary as omission would have been misleading. However, with the implementation of GASB Statement 84, this is no longer considered applicable. As such, the fiduciary fund financial statements are no longer included in the financial statements of the City.

Fair Value Measurements: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs — other than quoted prices included within level 1 — that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

46. NOTE 2 – CASH AND INVESTMENTS
Primary Government: The City's pooled idle funds are invested pursuant to investment policy guidelines adopted by the City Council. The objectives of the policy are to invest funds to the fullest extent possible and to invest in accordance with the provisions of the California Government Code with the priority of safety, liquidity and yield. The policy addresses the safekeeping of securities, types of investment instruments, diversification, maturities, reporting requirements, and internal control. The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the Statement of Net Position and the balance sheet as "cash and investments." Policies: California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110 percent of the City's cash on deposit, or first trust deed mortgage notes with a market value of 150 percent of the deposit, as collateral for these deposits. Under California Law, this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution.

The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.

Security instruments owned by the City are held in safekeeping by a third party custodian acting as agent for the City under the terms of a custody agreement.

The City's investments are carried at fair value with the exception of money market mutual funds, which are carried at amortized cost. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in investment income for that fiscal year.

Classification: The City's total cash and investments, at fair value, are presented on the financial statements in the following allocation:

Primary Government
Cash and investments $ 180,771,652
Restricted cash and investments:

Held by fiscal agent for pension 18,491,004
Held by fiscal agent for bond repayments 8,333
Total cash and investments $ 199,270,989
The bank value of the City’s cash deposits is $19,281,316 with cash per books of $19,459,827. All deposits in excess of FDIC coverage limits were collateralized with securities at year end. 743
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

47. NOTE 2 – CASH AND INVESTMENTS (Continued)
Authorized Investments by the City: The City's Investment Policy and the California Government Code allow the City to invest its pooled idle funds in the following, under limits and provisions that address interest rate risk, credit risk, and concentration of credit risk. This does not include the City's investments of debt proceeds held by fiscal agents that are governed by the provisions of debt agreements of the City.

Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment Type Maturity Quality Portfolio One Issuer U.S. Treasury Obligations 5 years N/A None None
U.S. Agency Securities * 5 years N/A None None
California Local Agency Investment
Fund (LAIF) N/A N/A Up to $65 million None
Non-negotiable Certificates of
Deposits (time deposits) 5 years N/A 30%*** 10% of portfolio; 5% of issuer’s net worth **
State of California registered state
warrants, treasury notes, or bonds 5 years N/A None None California local agency bonds, notes,
warrants, or other obligations 5 years N/A None None
Bond issued by the local agency 5 years N/A None None
Bankers' Acceptances 180 days N/A 40% None
Commercial Paper 270 days A-1+P-1 25% 10% of portfolio; 5% of issuer’s net worth; 10% of
outstanding paper of
Issuer. **
Negotiable Certificates of Deposit 5 years N/A 30% 10% of portfolio; 5% of issuer’s net worth. **
Repurchase Agreements 1 year N/A None 10% of portfolio; 5% of issuer’s net worth. **
Medium Term Corporate Notes 5 years A or better 30% 10% of portfolio; 5% of issuer’s net worth. **
Money market mutual funds investing
in U.S. Treasury, Government Agency
securities or repurchase agreements
collateralized by U.S. Treasury or
Government Agency securities 5 years Aaa/AAA 20% None
Supranationals 5 years AA or better 30% 10% of portfolio * Securities issued by agencies of the federal government such as the Government National Mortgage Association (GNMA), the Federal Farm Credit System (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Student Loan Marketing Association (SLMA), and the Federal Home Loan Mortgage Association (FHLMC). ** Represents restriction in which the City's investment policy is more restrictive than the California Government Code. *** 30% maximum percent of portfolio if using a private sector entity to assist in the placement of the time deposits. No maximum for others.

Authorized Investments by Debt Agreements: The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinances, bond indentures or State statutes. The City's Investment Policy allows investments of bond proceeds to be governed by provisions of the related bond indentures. The following identifies the investment types that are authorized for investments held by fiscal agents under the terms of the bond indentures of the related debt issue:
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

48. NOTE 2 – CASH AND INVESTMENTS (Continued)
Minimum Maximum
Maximum Credit Percentage of
Authorized Investment Type Maturity Quality Portfolio
Cash or obligations of the U.S. including U.S. Treasury obligations N/A N/A None Federal agencies obligations which represent
full faith and credit of the U.S. N/A N/A None
Direct federal agencies obligations which are not
fully guaranteed by the full faith and credit of the U.S. N/A N/A None U.S. dollar denominated deposit accounts, federal funds and bankers' acceptances with domestic commercial banks 360 days P-1, A-1+, A-1 None Commercial Paper 270 days P-1, A-1 None
Money market funds N/A Aaam or AAAm-G None
Pre-refunded municipal obligations that are not callable prior to maturity or as to which irrevocable instructions have been Highest given to call on the date specified in the notice N/A rating category None Municipal obligations or General obligations of states N/A Aaa, AAA, A2, A None California Local Agency Investment Fund (LAIF) N/A N/A Up to $65 million Shares in a California common law trust established pursuant to Title 1, Division 7, Chapter 5 of the California Government Code which invests exclusively in investments permitted by Section 53635 of Title 5, Division 2, Chapter of the California Government Code, as it may be amended. N/A N/A None
Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates.

Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date:
12 Months 13 to More than
Investment Type or less 24 Months 24 Months Total
U.S. Treasury Securities $ 1,275,250 $ 4,098,360 $ 27,757,105 $ 33,130,715 Corporate Notes 7,328,970 - 20,629,828 27,958,798
U.S. Agency Notes
Federal Home Loan Mortgage Corporation 1,518,360 2,343,312 7,886,280 11,747,952 Federal National Mortgage Association - 15,806,748 - 15,806,748 Federal Home Loan Banks 1,305,733 2,045,180 5,472,576 8,823,489 Federal Farm Credit Banks 1,339,986 4,239,160 - 5,579,146 Local Agency Investment Fund 21,001,116 - 21,001,116 - Municipal Bonds 796,570 796,570 Asset-Backed Securities 1,367,843 - 9,836,186 11,204,029 Negotiable Certificates of Deposit 3,352,320 - - 3,352,320 Supranationals 7,283,885 - - 7,283,885
Collateralized Mortgage Obligations - 3,170,720 - 3,170,720 Money Market Mutual Funds - Restricted for Pension (PARS) 18,491,004 - 18,491,004 - Money Market Mutual Funds 11,464,670 - - 11,464,670 Total Investments $ 67,032,324 $ 17,183,665 $ 95,595,173 179,811,162 Cash in banks and on hand 19,459,827
Total Cash and Investments
$ 199,270,989
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

49. NOTE 2 – CASH AND INVESTMENTS (Continued)
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are U.S. Treasuries, Federal Agency obligations, time deposits, negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. These investments had weighted average maturity of 191 days.

Money market mutual funds are available for withdrawal on demand. At June 30, 2021, money market mutual funds, used for pooled investment and held by fiscal agent purposes, had a weighted average maturity of 46 days or less.

Fair Value Hierarchy: The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2021:

Investments by Fair Value Level Level 1 Level 2 Total
U.S. Treasury Securities $ 33,130,715 - $ $ 33,130,715
Corporate Notes 27,958,798 - 27,958,798
U.S. Agency Notes - Federal Home Loan Mortgage Corporation 11,747,952 - 11,747,952 Federal National Mortgage Association 15,806,748 - 15,806,748 Federal Home Loan Banks 8,823,489 - 8,823,489
Federal Farm Credit Banks 5,579,146 - 5,579,146
Asset-Backed Securities 11,204,029 - 11,204,029
Collateralized Mortgage Obligations 3,170,720 - 3,170,720 Supranationals 7,283,885 - 7,283,885
Negotiable Certificates of Deposit 3,352,320 - 3,352,320 Municipal Bonds - 796,570 796,570
Total Investments $ - 128,854,372 $ 128,854,372
Investments Measured at Amortized Cost:

Money Market Mutual Funds 11,464,670
Money Market Mutual Funds - Restricted for Pension (PARS) 18,491,004 Investments Exempt from Fair Value Hierarchy:

Local Agency Investment Fund 21,001,116
Cash in banks and on hand 19,459,827
Total Cash and Investments $ 199,270,989
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

50. NOTE 2 – CASH AND INVESTMENTS (Continued)
Investments classified in Level 1 of the fair value hierarchy include securities valued using quoted prices in active markets. Federal Agency Securities and other U.S. Treasury Securities, classified in Level 2 of the fair value hierarchy are valued using matrix pricing techniques maintained by various pricing vendors.

Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices.

Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian bank. The California Local Agency Investment Fund (LAIF) is valued using factors provided in the Pooled Money Investment Account (PMIA) Performance Report by the State Treasurer’s Office. Money market funds and negotiable certificates of deposit are exempt from fair value measurement and are reported at amortized cost.

Credit Risk: Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2021 for each investment type, including those with fiscal agents, as provided by Moody's ratings:

Investment Type Ratings Total
Money Market Mutual Funds Aaa 29,955,674 $
Corporate Notes A1,A2,A3 27,958,798 U.S. Agency Notes
Federal Home Loan Mortgage Corporation Aaa 11,747,952 Federal National Mortgage Association Aaa 15,806,748 Federal Home Loan Banks Aaa 8,823,489 Federal Farm Credit Banks Aaa 5,579,146 Asset-Backed Securities Aaa 11,204,029 Collateralized Mortgage Obligations Aaa 3,170,720 Negotiable Certificates of Deposit Aaa 3,352,320 Supranationals Aaa 7,283,885
Municipal Bonds Aa2 796,570
U.S. Treasury Securities Aaa 33,130,715 Not Rated:

Local Agency Investment Fund Not Rated 21,001,116 Total Investments $179,811,162 Concentration of Credit Risk: The City's investment policy contains certain limitations on the amount that can be invested in any one issuer. In certain categories, these limitations are more restrictive than those required by California Government Code Sections 53600 et seq. Excluding those issued or explicitly guaranteed by the U.S. government and investments in the local agency investment fund and mutual funds, the City had the following investments that represent five percent or more of total City-wide investments:

Issuer Investment Type Amount
Federal Home Loan Mortgage Corporation (FHLMC) U.S. Agency Notes $11,747,952 Federal Home Loan Banks (FHLB) U.S. Agency Notes 8,823,489 Federal National Mortgage Association (FNMA) U.S. Agency Notes 15,806,748 747
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

51. NOTE 3 – LOANS RECEIVABLE
Housing Program Loans: On June 30, 1995, the City loaned $821,000 to Community Housing Developers, a California nonprofit public benefit corporation. The note bears interest at three percent per annum, compounded annually, payable to the extent of surplus cash, and all unpaid principal and interest due June 30, 2035. As of June 30, 2021, the balance remaining on the loan was $821,000. The loan was issued using resources in the Housing Development Fund and is considered governmental activities.

On June 6, 1996, the City loaned $320,000 to Cupertino Community Services, a California nonprofit public benefit corporation. The note bears interest at three percent per annum and due on July 14, 2026. As of June 30, 2021, the balance on the loan was $158,057. The loan was issued using resources in the Housing Development Fund and is considered governmental activities.

On September 11, 2017 the City loaned $3,672,000 to Stevens Creek, L.P., a California limited partnership.

The note bears interest at three percent per annum for 55 years. After the completion of construction of the development, no later than April 30th of each calendar year, the Developer shall make repayments of the loan in an amount equal to the City loan percentage of the lenders’ share of residual receipts. The payments shall be credited first against accrued interest and then against outstanding principal of the loan, and shall be accompanied by the developer’s report of residual receipts. As of June 30, 2021, the balance remaining on the loan was $3,672,000. The loan was issued using resources in the Housing Development Fund and is considered governmental activities.

In addition to these loans, the City has $40,120 in housing and other loans receivable as of June 30, 2021.

These loans bear interest at three to six percent and are due by June 30, 2025. The loan was issued using resources in the Housing Development Fund and is considered governmental activities. 748
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

52. NOTE 4 – INTERFUND TRANSACTIONS
Transfers between funds during the fiscal year ended June 30, 2021 were as follows:

Fund Making Transfers Fund Receiving Transfers Amount Transferred General Fund Transportation Special Revenue Fund $3,800,000 (D) ` Housing Special Revenue Fund 200,000 (G)
Public Financing Corporation Debt Service Fund 3,169,138 (B,D) Capital Improvement Projects Capital Projects Fund 5,000,000 (A) Non-major Enterprise Funds 450,000 (D)
Cupertino Sports Center Fund 660,000 (D)
Recreation Programs Fund 1,379,551 (D)
Internal Service Funds 490,000 (E)
Public Facilities Corporation Debt Service Fund General Fund 492,831 Capital Improvements Projects
Capital Projects Fund Transportation Special Revenue Fund 200,000 (A) Cupertino Sports Center Fund 25,000 (A)
Recreation Programs Fund 284,449 (C)
Non-Major Enterprise Funds 50,000 (A)
Non-major Governmental Funds General Fund 15,000 (F)
Total Interfund Transfers $16,215,969
The reasons for these transfers are set forth below:
(A) To fund capital projects.
(B) For annual lease payment for 2012 Certificates of Participation debt service. (C) To support state-mandated activities including complaint response and enforcement programs. (D) Operating subsidy from General Fund.
(E) To fund IT operations, personnel costs associated with staffing special project, and compensated absences and retiree health. (F) To fund purchase of trees
(G) To fund Homelessness Encampment Services.

Current Interfund Balances: Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. As of June 30, 2021, the Equipment Revolving Internal Service Fund owed the General Fund $539,204.

Interfund Advances: Interfund advances are balances between funds that are not expected to be repaid within the current fiscal year. As of June 30, 2021, the General Fund advanced $3,000,000 to the Capital Improvement Projects Capital Projects Fund for advance funding of planned projects that will be repaid in subsequent years.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

53. NOTE 5 – CAPITAL ASSETS
A summary of changes in governmental activities capital assets is as follows:

Balance at Balance at
July 1, 2020 Additions Deletions Transfers June 30, 2021 Governmental activities:

Capital assets not being depreciated:

Land $ 62,045,969 $ 2,740,700 $ - $ 64,786,669 - $
Easements 19,615,039 - - 19,615,039 - Construction in progress 5,315,170 15,707,748 (5,071,922) - 15,950,996 Total general government capital
assets not being depreciated 86,976,178 18,448,448 (5,071,922) - 100,352,704 Capital assets being depreciated:

Buildings 46,207,927 - 332,630 - 46,540,557
Improvements other than buildings 58,557,845 - 2,571,857 - 61,129,702 Machinery and equipment 4,149,407 (12,773) - 203,807 4,340,441 Roads, curbs, gutters, sidewalks, medians
and bridges 177,971,273 - 1,802,320 - 179,773,593
Streetlights 9,058,330 - 161,308 - 9,219,638
Storm drain structure and mains 37,373,158 - - 37,373,158 - Traffic signals 6,418,246 - - 6,418,246 - Total capital assets being depreciated 339,736,186 (12,773) - 5,071,922 344,795,335 Less accumulated depreciation for:

Buildings (30,193,858) (1,768,781) - (31,962,639) -
Improvements other than buildings (41,075,643) (2,301,680) - (43,377,323) - Machinery and equipment (2,795,651) (282,140) 12,772 (3,065,019) - Roads, curbs, gutters, sidewalks, medians and bridges (110,258,263) (2,613,878) - (112,872,141) - Streetlights (7,469,142) (130,676) - (7,599,818) - Storm drain structure and mains (33,110,382) (431,927) - (33,542,309) - Traffic signals (5,688,539) (112,576) - (5,801,115) - Total accumulated depreciation (230,591,478) (7,641,658) 12,772 (238,220,364) - Total general government capital assets being depreciated, net 109,144,708 (7,641,658) 5,071,922 (1) 106,574,971 Internal service fund capital assets:

Capital assets not being depreciated:

Construction in progress 214,666 661,449 (876,115) - - Total internal fund capital assets not being depreciated 214,666 661,449 (876,115) - - Capital assets being depreciated:

Machinery and equipment 11,422,217 (80,081) - 876,115 12,218,251 Less accumulated depreciation (7,981,952) (968,791) 78,304 (8,872,439) - Total internal fund capital assets being depreciated, net 3,440,265 (968,791) (1,777) 876,115 3,345,812 Governmental activities capital assets, net $199,775,817 $ 10,499,448 $ (1,778) $ 210,273,487 - $ 750
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

54. NOTE 5 – CAPITAL ASSETS (Continued)
Balance at Balance at
July 1, 2020 Additions Deletions Transfers June 30, 2021 Business-type activities:

Capital assets not being depreciated:

Construction in progress $ 1,149,254 - $ $ (1,023,923) - $ $ 125,331 Total capital assets not being depreciated 1,149,254 - (1,023,923) - 125,331 Capital assets being depreciated:

Buildings 1,006,002 - 1,023,923 - 2,029,925
Improvements other than buildings 2,089,743 - - 2,089,743 - Machinery and equipment 711,119 - - 711,119 - Total capital assets being depreciated 3,806,864 - 1,023,923 - 4,830,787 Less accumulated depreciation for:

Buildings (432,036) (52,398) - (484,434) -
Improvements other than buildings (1,653,421) (99,788) - (1,753,209) - Machinery and equipment (602,525) (25,420) - (627,945) - Total accumulated depreciation (2,687,982) (177,606) - (2,865,588) - Total capital assets being depreciated, net 1,118,882 (177,606) 1,023,923 - 1,965,199 Business-type activity capital assets, net $ 1,118,882 $ 971,648 $ - $ 2,090,530 - $ Depreciation expense was charged to functions and programs based on their usage of the related assets.

Depreciation expense was charged to governmental activities as follows:

Governmental Activities
Administration $ 187,220
Public and Environment Affairs 16,047
Administrative Services 29,038
Parks and Recreation 166,588
Public Works 7,242,765

Total $ 7,641,658
Depreciation expense was charged to the business-type activities as follows:

Business-Type Activities
Resources Recovery $ 3,314
Blackberry Farm 2,832
Cupertino Sports Center 66,802
Recreation Program 104,658
Total $ 177,606
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

55. NOTE 6 – LONG-TERM DEBT
Cupertino Public Facilities Corporation Certificates of Participation:

Original Balance Balance
Issue June 30, June 30, Current
Amount 2020 Additions Retirements 2021 Portion
2012 Refinancing Certificates
of Participation

0.350-3.125%, due
07/01/2030 $43,940,000 27,010,000 $ $ 27,010,000 - $ $ - $ - 2020A Certificates of Participation
4%, due 06/01/2030 $22,040,000 22,040,000 - 2,140,000 19,900,000 1,880,000 Issuance Premium 3,878,704 - 430,967 3,447,737 - Total long-term debt $27,010,000 $25,918,704 $29,580,967 $23,347,737 $1,880,000 The Cupertino Public Facilities Corporation issued Certificates of Participation to provide financing for the construction of the Community Center, improvements of the City Hall and the Library in July 1986; purchase of Wilson Park in 1989; finance the Memorial Park Expansion in 1990; and purchase the Blackberry Farm and Fremont Older site in 1991. The Cupertino Public Facilities Corporation, as lessor, leased real property to the City (under the Lease Agreement with the lessee) and assigned the base rental payments to the trustee for the benefit of the owners of the certificates of participation. The rental payments which represent the pledged revenues are scheduled to be sufficient in both time and amount, when the principal and interest of the certificates are due, which was the case for the year ended June 30, 2021.

On May 9, 2012, $43,940,000 principal amount of 2012 Refinancing Certificates of Participation (2012 COPs) were issued to refund the 2002 COPs, to fund a reserve fund for the 2012 COPs, and pay costs incurred in connection with issuance.

On September 29, 2020, $22,040,000 principal amount of 2020A Certificates of Participation (2020 COPs) were issued to refund the 2012 COPs and pay costs incurred in connection with issuance. The proceeds were placed into an escrow account, along with funds from the City’s 2012 COPs Reserve and on October 30, 2020, the 2012 COPS were prepaid, resulting no amounts outstanding as of June 30, 2021 for the 2012 COPs. The result of the transaction was an economic gain of $3,133,819.

The 2020A COPs are payable by a pledge of revenues from the lease payments payable by the City pursuant to the Lease Agreement between the Cupertino Public Facilities Corporation and the City for the use and possession of the Site and Facility as described in the Lease Agreement. The City also covenanted in the Lease Agreement to include all lease payments in its annual budget. Total debt service payments remaining on the 2020 COPs is $24,088,000 payable through June 1, 2030. For the year ended June 30, 2021, the bonds had $2,140,000 of principal and $799,047 interest due. 752
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

56. NOTE 6 – LONG-TERM DEBT (Continued)
Annual debt service requirements for the 2020A COPS are shown below:

NOTE 7 – NET POSITION AND FUND BALANCES
Net Position is measured on the full accrual basis while Fund Balance is measured on the modified accrual basis.

Net Position: The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows:

Net investment in capital assets - This category groups all capital assets including, infrastructure, into one component of net position. Accumulated depreciation and outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted - This category represents net position that has external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted - This category represents net position of the City that do not meet the definition of "net investment in capital assets" or "restricted."
Fund Balances: As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the followings:

Nonspendable Fund Balance - includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash, for example: prepaid items, property held for resale and long term notes receivable.

Restricted Fund Balance - includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

For the Year
Ending June 30 Principal Interest
2022 $ 1,880,000 $ 796,000
2023 1,955,000 720,800
2024 2,035,000 642,600
2025 2,115,000 561,200
2026 2,200,000 476,600
2027-2030 9,715,000 990,800
Total $ 19,900,000 $ 4,188,000
Governmental Activities
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

57. NOTE 7 – NET POSITION AND FUND BALANCES (Continued) Committed Fund Balance - includes amounts that can only be used for the specific purposes determined by a formal action of the City's highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) that imposed the constraint originally.

Assigned Fund Balance - comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. Through the adopted budget, the City Council establishes assigned fund balance policy levels and also sets the means and priority for the City Manager to fund these levels.

Unassigned Fund Balance - is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Only the General Fund reports unassigned positive fund balance. A governmental fund other than the General Fund may report a negative unassigned fund balance if expenditures incurred for a specific purpose exceed the amounts that are restricted, committed or assigned to those purposes.

In circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, the fund balance in General Fund will generally be used in the order of restricted, unassigned, and then assigned reserves. In other governmental funds, the order will generally be restricted and then assigned.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

58. NOTE 7 – NET POSITION AND FUND BALANCES (Continued) Fund balances for all major and nonmajor governmental funds as of June 30, 2021, were distributed as follows:

Public Capital Other
Housing Facilities Improvements Governmental
General Transportation Development Corporation Projects Funds Total Nonspendable:

Loans receivable $ 444,346 $ - $ - $ - $ - $ 444,346 - $ Advances to other funds 3,000,000 - - - - 3,000,000 - Subtotal 3,444,346 - - - - 3,444,346 - Restricted for:

Public access television 1,418,472 - - - - 1,418,472 - Debt service 13,392 - - - - 13,392 - PRSP Section 115 Trust 18,491,004 - - - - 18,491,004 - Public safety power shutoff 217,551 - - - - 217,551 - Debt service - - 63,350 - - 63,350 - Storm drain system - - - - 4,084,025 - 4,084,025 Parks and open space - - - - 9,708,675 - 9,708,675
Environmental management - - - - 1,887,623 - 1,887,623
Streets and road projects 9,409,837 - - - 468,998 - 9,878,835 Housing programs - 7,948,113 - - - 7,948,113 - Subtotal 20,140,419 9,409,837 7,948,113 63,350 16,149,321 - 53,711,040 Committed for:

Economic uncertainty I 19,000,000 - - - - 19,000,000 - Sustainability Reserve 127,891 - - - - 127,891 - Subtotal 19,127,891 - - - - 19,127,891 - Assigned to:

Encumbrances 4,906,139 - - - - 4,906,139 - Capital projects - - - 36,859,117 - 179,057 37,038,174 Subtotal 4,906,139 - - 36,859,117 - 179,057 41,944,313
Unassigned 49,231,996 - - - - 49,231,996 - Total $ 96,850,791 $ 9,409,837 $ 7,948,113 $ 36,859,117 63,350 $ $ 16,328,378 $ 167,459,586 NOTE 8 – COMMITMENTS AND CONTINGENCIES
Federal and State Grant: The City participates in a number of federal and state grant programs subject to financial and compliance audits by the grantors or their representatives. Audits of certain grant programs, including those for the year ended June 30, 2021, have yet to be conducted. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time.

Management believes that such disallowances, if any, would not have a material effect on the financial statements.

Encumbrances: The City uses encumbrances to control expenditure commitments for the year.

Encumbrances represent commitments related to executor contracts not yet performed and purchase orders not yet filled. Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year end are not accounted for as expenditures and liabilities, but as restricted, or assigned fund balance. 755
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

59. NOTE 8 – COMMITMENTS AND CONTINGENCIES (Continued)
As of June 30, 2021, the City had the following encumbrances outstanding:

Governmental Funds:

General Fund $ 4,906,139
Transportation Special Revenue Fund 2,313,039
Housing Development Special Revenue Fund 13,933
Capital Improvements Projects Capital Projects Fund 9,149,569 Other Governmental Funds 87,145
Total Encumbrances $ 16,469,824
Lease Agreement with County of Santa Clara: The City has an agreement (commitment), expired in 2020 but still being honored, to lease a building to the County of Santa Clara for the purpose of providing library service to the City's residents. The lease requires a minimum annual payment of $120,000 adjusted for Cupertino's portion of book circulation and increase of assessed valuation. This is an operating lease with a renewable option. The City is currently negotiating the terms with the Santa Clara County Library District JPA to renew the operating lease. At June 30, 2021, the cost and carrying value of the building which opened in October 2004, is $21,952,133 and $7,182,100 respectively, with $14,770,033 in accumulated depreciation.

Consulting Agreement for Sales Taxes: The City entered into agreements (commitments) with two companies to provide services consisting of the assessment and creation of new sales and use tax revenue sources for the City. The City agreed to pay the companies based on a sliding scale payment schedule dependent on the level of new sales tax revenue realized by the City as defined in the consulting agreements. These agreements qualify as tax abatements under the provisions of GASB Statement 77.

However, due to legal restrictions per the California Revenue and Taxation Code, Section 7056, additional disclosures cannot be provided.

Santa Clara County Vehicle Registration Fee (VRF): The City is required to report VRF revenues, expenditures and fund balances as of the year ended June 30, 2021:

VRF Balance as of July 1, 2020 $ -
VRF Revenue 382,102
VRF Interest -
VRF Expended (382,102)
VRF Balance as of June 30, 2021 $ -
NOTE 9 – LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT General and Property Liability: The City is self-insured for the first $250,000 of general and property liability for each occurrence, and the excess (up to $10,000,000 for each occurrence and annual aggregate) is covered through the City's participation in the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA – formerly the Association of Bay Area Governments Pooled Liability Assurance Network or ABAG PLAN). The risk pool consists of 28 agencies within the San Francisco Bay Area. The stated purpose of the PLAN JPA is to provide certain levels of liability insurance coverage, claims management, risk management services, and legal defense to its participating members. PLAN JPA is governed by a Board of Directors, which comprises officials appointed by each participating member. Premiums paid to PLAN JPA are subject to possible refund based on the results of actuarial studies and approval by the Board of Directors. Complete financial statements for PLAN JPA may be obtained from their offices at the following address: PLAN JPA, c/o Sedgwick, 1750 Creekside Oaks Drive Suite 200, Sacramento, CA, 95833.

Premiums are revised each year based on the City's claims experience and risk exposure. For the year ended June 30, 2021, the City paid ABAG PLAN premiums of $639,636. 756
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

60. NOTE 9 – LIABILITIES UNDER SELF-INSURANCE AND RISK MANAGEMENT (Continued) Workers' Compensation Liability: The City belongs to the CSAC Excess Insurance Authority (EIA), a joint power authority which provides excess workers' compensation liability claims coverage above the City's self-insured retention of $500,000 per occurrence. Losses above the self-insured retention are pooled with excess reinsurance purchased to a $50,000,000 statutory limit. EIA was established in 1979 for the purpose of creating a risk management pool for all California public entities. EIA is governed by a Board of Directors consisting of representatives of its member public entities. Complete financial statements for ETA may be obtained from their offices at the following address: CSAC Excess Insurance Authority, Finance Department, EIA 75 Iron Point Circle, Suite 200, Folsom, CA 95630. For the year ended June 30, 2021, the City paid premiums of $100,967.

It is the City's practice to obtain biennial actuarial studies for the self-insured workers' compensation liability.

The claims liabilities included in the workers' compensation internal service fund is based on the results of actuarial studies and include amounts for claims incurred but not reported and loss adjustment expenses.

Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of payouts, and other economic and social factors. Inflation of 2.5 percent, annual rate of return of two percent, claim severity increase at 2.5 percent were assumed. In the current year, management used actuarial estimates based on a 90 percent confidence level.

Settlements have not exceeded insurance coverage in the past three years.

Changes in the balances of workers' compensation and general claims liabilities during the years ended June 30 are as follows:
2021 2020
Claims liability, beginning of year $ 1,527,000 $ 1,553,277 Incurred claims and changes in estimate (117,896) 127,471 Claim payments and credits (35,104) (153,478)
Total claims liability, end of year 1,374,000 1,527,000 Less current portion (245,000) (274,000)
Non-current portion $ 1,129,000 $ 1,253,000
NOTE 10 – DEFINED BENEFIT PENSION PLAN
Plan Descriptions and Summary of Balances by Plan: The City has one defined benefit pension plan. The Miscellaneous Plan (Plan) is an Agent-Multiple Employer Plan. Benefit provisions under the Plan is established by State statute and City Ordinance. All qualified permanent and probationary employees are eligible to participate in the Plan for which they are an eligible member based on their employment position with the City.

The Plan is administered by the California Public Employees' Retirement System (CalPERS) which acts as a common investment and administrative agent for its participating member employers. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

61. NOTE 10 – DEFINED BENEFIT PENSION PLAN (Continued)
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Miscellaneous Plan and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Below is a summary of the deferred outflows of resources, net pension liabilities and deferred inflows of resources by Plan:

Deferred Outflows Net Pension Deferred Inflows
of Resources Liability of Resources
Miscellaneous $ 9,202,043 $ 48,513,020 $ 121,088
Benefits Provided: CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012. The Plans' provisions and benefits in effect at June 30, 2021, are summarized as follows:

Hire date
Prior to On or after
January 1, 2013 January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Minimum retirement age 50 52
Monthly benefits, as a % of eligible compensation 2% to 2.7% 1% to 2% Required employee contribution rates 8.00% 6.25%
Required employer contribution rates 23.54% 25.653%
Employees Covered: As of the June 30, 2020 actuarial valuation date (most current), the following employees were covered by the benefit terms of the Plan:

Inactive employees or beneficiaries currently receiving benefits 239 Inactive employees entitled to but not yet receiving benefits 150 Active employees 197
Total 586
Contributions: Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 758
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

62. NOTE 10 – DEFINED BENEFIT PENSION PLAN (Continued)
Net Pension Liability: The City's net pension liability for the Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020 using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions: The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.63%
Payroll Growth 2.88%
Projected Salary Increase Varies by Entry Age and Service (1) Investment Rate of Return 7.25% (2)
Derived using CaIPERS' Membership
Mortality Data for all Funds (3)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses and administrative expenses, including inflation (3) The mortality table used was developed based on CaIPERS' specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the CaIPERS 2017 experience study report available on CaIPERS website.

All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015, including updates to salary increase, mortality and retirement rates. Further details of the Experience Study can be found on the CaIPERS website under Forms and Publications.

Change of Assumptions: None in 2021.

Discount Rate: The discount rate used to measure the total pension liability was 7.15 percent for the Plan.

To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaIPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets.

Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 759
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

63. NOTE 10 – DEFINED BENEFIT PENSION PLAN (Continued)
In determining the long-term expected rate of return, CaIPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

Asset Class
New
Strategic
Allocation
Real Return
Years 1 - 10(a)
Real Return
Years 11+(b)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) An expected inflation of 2.00% used for this period. (b) An expected inflation of 2.92% used for this period.

The table above reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

These rates of return (presented as geometric means) are net of administrative expenses.

Changes in Net Pension Liability: The changes in the Net Pension Liability for the City's Miscellaneous Plan are as follows:
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

64. NOTE 10 – DEFINED BENEFIT PENSION PLAN (Continued)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balance at June 30, 2019 $ 145,432,153 $ 99,333,623 $ 46,098,530 Changes in the year:

Service cost 3,241,719 - 3,241,719
Interest on the total pension liability 10,302,395 10,302,395 - Change of Assumptions - - - Differences between actual and expected experience 444,188 - 444,188 Contribution - employer 5,308,580 - (5,308,580)
Contribution - employee 1,429,446 - (1,429,446)
Net investment income 4,975,822 - (4,975,822)
Administrative expenses - (140,036) 140,036
Other miscellaneous income/(expenses) - - -
Benefit payments, including refunds of employee
contributions (6,815,494) (6,815,494) -
Net changes 7,172,808 4,758,318 2,414,490
Balance at June 30, 2020 $ 152,604,961 $ 104,091,941 $ 48,513,020 Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following presents the net pension liability of the City, calculated using the discount rate for the Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Miscellaneous
1% Decrease 6.15%
Net Pension Liability $ 68,586,079
Current Discount Rate 7.15%
Net Pension Liability $ 48,513,020
1% Increase 8.15%
Net Pension Liability $ 31,903,241
Pension Plan Fiduciary Net Position: Detailed information about the Plan's fiduciary net position is available in the separately issued CalPERS financial reports.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

65. NOTE 10 – DEFINED BENEFIT PENSION PLAN (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions: For the year ended June 30, 2021, the City recognized pension expense of $8,113,684. As of June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 5,957,573 $ - Differences between actual and expected experience 2,331,941 - Changes in assumptions - 121,088
Net differences between projected and actual earnings
on plan investments 912,519 -
Total $ 9,202,043 $ 121,088
The $5,957,573 of contributions for the fiscal year ended June 30, 2021 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2021 $ 983,031
2022 1,111,471
2023 607,690
2024 421,191
$ 3,123,382
NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description: Permanent employees who retire under the City's CaIPERS retirement plan are, pursuant to their respective collective bargaining agreements, eligible to have their medical insurance premiums paid by the City. Retirees receive the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefit plan provided by CalPERS up to the maximum received by active employees in their respective bargaining unit.

The City contracts with CaIPERS for this insured-benefit plan established under the state Public Employees' Medical and Hospital Care Act (PEMHCA). The plan offers employees and retirees three CalPERS' selffunded options, setup as insurance risk pools, or offers various third-party insured health plans. The plan's medical benefits and premium rates are established by CalPERS and the insurance providers. The City contribution is established by City resolution. Retirees and active employees pay the difference between the premium rate and the City's contribution. Premiums and City contributions are based on the plan and coverage selected by actives and retirees, with the City's potential contribution ranging from zero to $1,605 per month per employee or retiree. The responsibility for benefit payments has transferred to the insurers and the City does not guarantee the benefits in the event of default by the insurers. A comprehensive annual financial report of CalPERS, inclusive of their benefit plans, is available at www.calpers.ca.gov. 762
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

66. NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) The City participates in the Public Agency Retirement System (PARS) Public Agencies Post Retirement Health Care Plan Trust Program (PARS Trust), an agent-multiple employer irrevocable trust established to fund other postemployment benefits. The City Council adopted the PARS Public Agencies Post-Retirement Health Care Plan Trust, including the PARS Public Agencies Post-Retirement Health Care Plan, to fund medical insurance costs for its retired employees, effective February 17, 2010. The City Council appointed the City Treasurer, or his/her successor or his/her designee as the City’s plan administrator. The plan administrator is authorized to execute the PARS legal documents on behalf of the City and to take whatever additional actions necessary to maintain the City’s participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City’s PARS Plan. The PARS Trust is approved by the Internal Revenue Code Section 115 and invests funds in equity, bond, and money market mutual funds.

Copies of PARS Trust annual financial report is available at the City's Finance Department.

An employee is eligible for lifetime medical benefits under the OPEB Plan, along with his/her spouse or declared domestic partner at the time of retirement, if all criteria listed below are met:
 The employee was hired or the City Council member was elected prior to August 1, 2004, and the employee has five or more full-time years of service and the City Council member has five or more years of elected service with the City of Cupertino; or  The employee was hired or the City Council member was elected on or after August 1, 2004, and the employee has ten or more full-time and/or elected years of CalPERS service, five years of which must be from the City of Cupertino; and
 The employee is eligible for retirement as defined under the CaIPERS retirement system; and the employee retires from the City of Cupertino.

In addition, the eligible employee's dependent children at the time of retirement who are under 23 years old are eligible for medical benefits. In addition to extending the eligibility of dependents from age 23 to age 26 in accordance with the recent healthcare reform act, effective July 1, 2010, employees that retire or resign from service with the City of Cupertino and who are not eligible for retiree medical benefits can continue on the City's medical and dental plans provided that they pay the premiums in full.

Plan membership: At January 1, 2021 (the latest information available), Plan membership consisted of the following:

Inactive plan members or beneficiaries currently receiving benefit payments 148 Inactive plan members entitled to but not yet receiving benefit payments 0 Active plan members 173
321
Contributions: OPEB Plan contributions are set by the adopted budget. The cost of the benefits provided by the OPEB Plan is currently being paid by the City on a fully pre-funded basis. Based on the actuarial valuation date of January 1, 2021, the annual required contribution rate is 0.54 percent of annual covered payroll. For the year ended June 30, 2021, the City paid $1,550,000 in healthcare premium payments. Plan members are not required to contribute to the plan.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

67. NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) Net OPEB Liability of the City: The components of the net OPEB liability of the City as of June 30, 2021 (expressed in thousands) were as follows:

Total OPEB liability $ 28,626
Plan fiduciary net position 38,025
City's net OPEB liability (asset) $ (9,399)
Plan fiduciary net position as a percentage of the total OPEB liability 133% Investment rate of return: The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class.

These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the target asset allocation as of June 30, 2021 (see the discussion of the Plan’s investment policy) are summarized in the following table:

Long-Term Expected
Asset Class Real Rate of Return
Fixed income – core 0.69%
Fixed income – high yield 3.06%
Equities – domestic 6.88%
Equities – developed foreign 6.73%
Equities – emerging foreign 8.60%
Real estate 4.89%
Commodities 3.37%
Cash 0.44%
Investment policy: The Plan’s policy in regard to the allocation of invested assets is established and may be amended by the Plan’s Board by a majority vote of its members. It is the policy of the Plan Board to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes. The Plan’s investment policy discourages the use of cash equivalents, except for liquidity purposes, and aims to refrain from dramatically shifting asset class allocations over short time spans. The following was the Board’s adopted asset allocation policy as of June 30, 2021:

Asset Class Target Allocation
Fixed income 29%
Equities 62%
Real estate 6%
Commodities 2%
Cash 1%
Total 100%
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

68. NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) Concentrations: The Plan did not have investments outside of mutual funds that comprise five percent or more of the Plan’s total fiduciary net position.

Rate of return: For the year ended June 30, 2021, the annual money-weighted rate of return on investments, net of investment expense, was 5.28 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

Actuarial assumptions: The total OPEB liability was determined by an actuarial valuation as of January 1, 2021, using the previously listed actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. Mortality rates were based on the CalPERS mortality assumptions.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with long-term perspective of the calculations.

The other significant actuarial assumptions used to prepare the City's January 1, 2021 actuarial valuation include the following:

Valuation date: January 1, 2021
Measurement date: June 30, 2021
Actuarial Cost Method: Entry Age Normal
Amortization Method: Level percent of pay closed
Amortization Period: 10 year
Asset Valuation Method: Market value
Actuarial Assumptions:

Discount Rate 6.50%
Payroll Growth 3.00%
Ultimate Rate of Medical Inflation 4.50%
Mortality (1) CalPERS mortality assumptions
Health Care Trend The annual cost of healthcare is
expected to decrease from

6.5% in 2020 to 4.5% from 2076
and later.
(1) 2017 CalPERS Experience Study, Recipients with attained age of 50 Discount rate: The discount rate used to measure the total OPEB liability was 6.5 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. 765
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

69. NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) Changes in the Net OPEB Liability: The changes in the City’s net OPEB liability (asset) are (in thousands):

Net Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
Balance at July 1, 2020 $ 31,338 $ 29,370 $ 1,968
Changes in the year
Service cost 844 - 844
Interest on the total OPEB liability 2,042 - 2,042
Change of assumptions 640 - 640
Differences between actual and
expected experience (4,688) - (4,688)
Contribution – employer - 1,550 (1,550)
Contribution – employee - - -
Net investment income - 8,776 (8,776)
Administrative expenses - (121) 121
Benefit payments, including refunds of
Employee contributions (1,550) (1,550) -
Net changes (2,712) 8,655 (11,367)
Balance at June 30, 2021 $ 28,626 $ 38,025 $ (9,399)
Sensitivity of the net OPEB liability (asset) to changes in the discount rate: The following presents the net OPEB asset of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one-percentage-point lower (5.5 percent) or one-percentage-point higher (7.5 percent) than the current discount rate (expressed in thousands):
1% Current 1%
Decrease Discount Rate Increase

5.50% 6.50% 7.50%
City of Cupertino’s net OPEB liability
(asset) for the plan $ (5,806) $ (9,399) $ (12,383)
Sensitivity of the net OPEB liability (asset) to changes in the healthcare cost trend rates: The following presents the net OPEB asset of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are one-percentage-point lower (decreasing to 3.5 percent) or one-percentage-point higher (increasing to 5.5 percent) than the current healthcare cost trend rates (expressed in thousands):

Current
1% Healthcare Cost 1%
Decrease Trend Rate Increase
City of Cupertino’s net OPEB liability
(asset) for the plan $ (12,598) $ (9,399) $ (5,469)
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

70. NOTE 11 – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) OPEB Expense and Deferred Inflows of Resources Related to OPEB: For the year ended June 30, 2021, the City recognized OPEB expense of $(990,000). As of June 30, 2021, the City reported deferred inflows of resources related to OPEB from the following sources (in thousands):

Deferred Outflows Deferred Inflows
of Resources of Resources
Net difference between projected and actual
earnings on investments $ - $ 4,269
Differences between expected and actual experience - 4,473 Changes in assumption 1,569 15
$ 1,569 $ 8,757
Amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows (in thousands):

Year Ended Deferred Inflows
June 30 of Resources
2022 $ (1,820)
2023 (1,706)
2024 (1,479)
2025 (2,183)
Total $ (7,188)
NOTE 12 – CONCENTRATION RISK
The City has an economic dependency on revenues generated directly or indirectly from one company. For the year ended June 30, 2021, more than 10 percent of the City General Fund's total revenues are derived from the company. The City's operations would be adversely impacted if there are any significant declines in taxes received from the company.

NOTE 13 – UPCOMING GASB PRONOUCEMENTS
In June 2017, the GASB issued Statement 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. This Statement is now effective for the City’s fiscal year ended June 30, 2022 due to the postponement impacts of GASB Statement 95.

Management has not determined what impact, if any, this statement will have on its financial statements. 767
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CITY OF CUPERTINO, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

71. NOTE 13 – UPCOMING GASB PRONOUCEMENTS (Continued)
In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. This Statement is now effective for the City’s fiscal year ended June 30, 2022 due to the postponement impacts of GASB Statement 95. Management has not determined what impact, if any, this statement will have on its financial statements.”
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. This Statement is effective for the City’s fiscal year ended June 30, 2022. Management has not determined what impact, if any, this statement will have on its financial statements.

In January 2020, GASB issued Statement No. 92, Omnibus 2021. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB statements. Upon the City’s adoption of GASB Statement No 95, effective date for the Statement was delayed for the City until their fiscal year ended June 30, 2022, with the exception of paragraphs 11 and 13 which are now effective and the City has implemented with no material impact to the City’s financial statements. Management has not yet determined the impact of the remainder of this statement on the City’s financial statements.

In March 2021, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The primary objectives of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. Upon the City’s adoption of GASB Statement No 95, effective date for the Statement was delayed for the City until their fiscal year ended June 30, 2022. Management has not yet determined the impact of this statement on the City’s financial statements.

In March 2021, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objectives of this Statement is improve financial reporting by addressing issues related to public-private and public-public partnership arrangements. This Statement also provides guidance for accounting and financial reporting for availability payments arrangements. The requirements of this Statement are effective for the City’s fiscal year ended June 30, 2023. Management has not yet determined the impact of this statement on the City’s financial statements.

In May 2021, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements.

This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The requirements of this Statement are effective for the City’s fiscal year ended June 30, 2023. Management has not yet determined the impact of this statement on the City’s financial statements.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021
(Continued)

72. NOTE 13 – UPCOMING GASB PRONOUCEMENTS (Continued)
In June 2021, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this Statement are effective for the City’s fiscal year ended June 30, 2022, with the exception of paragraphs 4 and 5 which are now effective and the City has implemented with no material impact to the City’s financial statements. Management has not yet determined the impact of the remainder of this statement on the City’s financial statements.

NOTE 14 – COVID-19 IMPACT
In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments have adversely affected workforces, customers, economies, and financial markets globally. It has also disrupted the normal operations of many governments, including the City of Cupertino. The City expects this outbreak to impact the City’s operations for future reporting periods; however, it is not possible for the City to predict the duration or magnitude of the adverse results of the outbreak and its effects on the City’s operations. In response to the global pandemic, the Federal government initiated two federal relief programs designed to provide direct funding to states and cities.

The first program, the Coronavirus Aid, Relief, and Economic Security (CARES) Act established a $150 billion Coronavirus Relief Fund. Federal law specifies that these funds may only be used for unbudgeted costs incurred between March 1, 2020 and December 31, 2020. Control Section 11.90 of the 2021 Budget Act extended the expenditures deadline for cities, counties and community colleges to September 1, 2021.

The Budget Act authorized the California Department of Finance to allocate $1,289,065,000 to address the public health and public safety impacts of COVID19, including homelessness. Pursuant to the provisions of Control Section 11.90, cities with populations between 300,000 and 500,000 were allocated $225 million and cities with populations less than 300,000 were allocated $275 million. Allocations generally for cities were derived using the proportional share of the State population. The City of Cupertino’s nonrecurring allocation of $735,259 was received in July 2020. The CARES Act established six eligible expense categories, as follows: (A) Medical Expenses; (B) Public Health Expenses; (C) Substantially Dedicated Payroll Expenses; (D) Comply with Public Health Measures and Mitigate the Effects of COVID19; (E) Economic Support; or (F) Other.
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NOTES TO BASIC FINANCIAL STATEMENTS
For the year ended June 30, 2021

73. NOTE 14 – COVID-19 IMPACT (Continued)
The entire CARES Act amount of the $759,259 was recognized as revenue in FY 2020/21 and categorized as Operating Grants and Contributions in the Statement of Activities Schedule, and Intergovernmental Revenues in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance Schedule. On March 11, 2021, the second program, the American Rescue Plan Act (ARPA) was signed into law by President Biden. The $1.9 trillion package (the Act) provides financial aid to families, governments, businesses, schools, nonprofits and others impacted by the COVID-19 public health crisis.

Of the $1.9 trillion, $350 billion is being directed toward state and local governments. All 19,000 municipal governments are entitled to a direct, noncompetitive federal formula grant from the U.S. Treasury Department. The portion allocated to cities, towns, and villages totals $65.1 billion. The Act will allocate $9,694,773 to the City over a two year period. The first tranche payment of $4,847,387 was received on May 19, 2021, and the second payment no earlier than 12 months after the first payment. Section 603.

CORONAVIRUS LOCAL FISCAL RECOCERY FUND of the Act identified four eligible uses for funding, as follows: (A) to respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; (B) to respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the metropolitan city, non-entitlement unit of local government, or county that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work; (C) for the provision of government services to the extent of the reduction in revenue of such metropolitan city, non-entitlement unit of local government, or county due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the metropolitan city, non-entitlement unit of local government, or county prior to the emergency; or (D) to make necessary investments in water, sewer, or broadband infrastructure. Initial revenue loss estimates amounted to $29 million through December 31, 2023 and as a result, the Cupertino City Council approved the use of ARP funds for revenue loss. As of and for the fiscal year ending June 30, 2021, the $4.8 million received in May 2021 was recorded as unearned revenue. The City plans to recognize revenues for both tranches of payment in FY 21/22. In accordance with the Treasury’s Final Rule, a standard allowance for revenue loss of up to $10 million may be elected. Recipients that select the standard allowance may use that amount for government services. The City anticipates recognizing these revenues in the General Fund and using them to support continued government services.
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REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
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CITY OF CUPERTINO, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY

AND RELATED RATIOS
For the year ended June 30, 2021

74. Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total Pension Liability
Service Cost $ 2,504,228 $ 2,444,939 $ 2,525,314 $ 2,895,549 $ 3,058,629 $ 3,324,361 $ 3,241,719 Interest 7,349,943 7,789,134 8,253,983 8,619,588 9,065,322 9,800,245 10,302,395 Changes of benefit terms - - - - - - - Differences between expected and actual experience 372,917 - 696,347 (182,397) 1,184,340 4,144,384 444,188 Changes in assumptions (1,883,633) - 7,125,558 - (847,606) - - Benefit payments, including refunds of employee contributions (4,351,614) (4,637,005) (5,151,298) (5,346,890) (6,051,845) (6,193,271) (6,815,494) Net change in total pension liability 5,502,557 4,086,352 6,324,346 13,111,408 6,408,840 11,075,719 7,172,808 Total pension liability - beginning 98,922,931 104,425,488 108,511,840 114,836,186 127,947,594 134,356,434 145,432,153 Total pension liability - ending (a) $ 104,425,488 $ 108,511,840 $ 114,836,186 $ 127,947,594 $ 134,356,434 $ 145,432,153 $152,604,961 Plan fiduciary net position
Contributions - employer $ 2,891,986 $ 3,301,642 $ 3,659,170 $ 4,183,822 $ 4,263,020 $ 4,654,841 $ 5,308,580 Contributions - employee 1,061,884 1,149,894 1,169,921 1,236,052 1,506,888 1,364,731 1,429,446 Net investment income 11,379,985 1,724,204 466,704 8,749,288 7,347,936 6,096,968 4,975,822 Benefit payments, including refunds of employee contributions (4,351,614) (4,637,005) (5,151,298) (5,346,890) (6,051,845) (6,193,271) (6,815,494) Administrative expense (87,780) - (47,536) (115,304) (392,346) (66,707) (140,036) Other miscellaneous Income/(Expense) - - - - - 216 - Net change in plan fiduciary net position 10,982,241 1,450,955 96,961 8,706,968 6,673,653 5,856,778 4,758,318 Plan fiduciary net position - beginning 65,566,067 76,548,308 77,999,263 78,096,224 86,803,192 93,476,845 99,333,623 Plan fiduciary net position - ending (b) $ 76,548,308 $ 77,999,263 $ 78,096,224 $ 86,803,192 $ 93,476,845 $ 99,333,623 $104,091,941 Net pension liability - ending (a)-(b) $ 27,877,180 $ 30,512,577 $ 36,739,962 $ 41,144,402 $ 40,879,589 $ 46,098,530 $ 48,513,020 Plan fiduciary net position as a percentage of the total pension liability 73.30% 71.88% 68.01% 67.84% 69.57% 68.30% 68.21% Covered payroll $ 13,080,327 $ 13,504,966 $ 14,336,969 $ 15,595,136 $ 16,809,349 $ 19,664,057 $ 19,871,414 Net pension liability as percentage of covered payroll 213.12% 225.94% 256.26% 263.83% 243.20% 234.43% 244.13% Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation, therefore only six years are shown.

Source: CalPERS Accounting Valuation
Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after the actuarial valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions. None in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions from December 2017. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes.

In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan Last 10 years*
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CITY OF CUPERTINO, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS - PENSION
For the year ended June 30, 2021

75. 2015 2016 2017 2018 2019 2020 2021 Actuarially determined contribution $ 3,608,853 $ 3,659,170 $ 4,183,821 $ 4,263,020 $ 4,654,841 $ 5,308,577 $ 5,957,573 Contributions in relation to the actuarially determined contributions (3,608,853) (3,659,170) (4,183,821) (4,263,020) (4,654,841) (5,308,577) (5,957,573) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 13,504,966 $ 14,336,969 $ 15,595,136 $ 16,809,349 $ 19,664,057 $ 19,871,414 $ 20,103,210 Contributions as a percentage of covered payroll 26.72% 25.52% 26.83% 25.36% 23.67% 26.71% 29.63% Notes to Schedule Valuation date: 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age Amortization method Level percentage of payroll, closed Remaining amortization period 19 Years as of the Valuation Date Asset valuation method 15 Year Smoothed Market Inflation 2.65%
Salary increases Varies by Entry age and Service
Investment rate of return
Retirement age
Mortality
* - Fiscal year 2015 was the 1st year of implementation, therefore only six years are shown.

Source: City of Cupertino's general ledger and CalPERS Actuarial Valuation Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation, therefore only three years are shown.

Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan Last 10 years*
Source: CalPERS Accounting Valuation

7.25% Net of Pension Plan
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries.

Benefit changes. The figures above do not include any liability impact that may have resulted from plan changes which occurred after the actuarial valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions. None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions from December 2017. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
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CITY OF CUPERTINO, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY

AND RELATED RATIOS
For the year ended June 30, 2021

76. 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Total OPEB liability
Service cost $ 908 $ 1,008 $ 865 $ 1,009 $ 844
Interest 1,781 1,876 2,005 1,985 2,042
Changes of benefit terms - - - - - Differences between expected and actual experience - (1,808) - (4,688) - Changes of assumptions - - (37) 1,412 640 Benefit payments (1,333) (1,419) (1,423) (1,141) (1,550) Net change in total OPEB liability 1,356 1,465 (398) 3,265 (2,712) Total OPEB liability - beginning 25,650 27,006 28,471 28,073 31,338 Total OPEB liability - ending (a) $ 27,006 $ 28,471 $ 28,073 $ 31,338 $ 28,626 Plan fiduciary net position
Contributions - employer 1,333 1,419 1,423 1,141 1,550
Net investment income 2,960 2,365 1,259 219 8,776
Benefit payments (1,333) (1,419) (1,423) (1,141) (1,550) Administrative expense (49) (54) (97) (67) (121)
Net change in fiduciary net position 2,911 2,311 1,162 152 8,655 Plan fiduciary net position - beginning 22,834 25,745 28,056 29,218 29,370 Plan fiduciary net position - ending (b) $ 25,745 $ 28,056 $ 29,218 $ 29,370 $ 38,025

2.65%
Net OPEB liability (asset) - ending (a-b) $ 1,261 $ 415 $ (1,145) $ 1,968 $ (9,399) Plan fiduciary net position as a percentage of the total OPEB liability 95.33% 98.54% 104.08% 93.72% 132.83% Covered payroll $ 17,255 $ 19,153 $ 20,086 $ 21,643 $ 23,082 Net OPEB liability (asset) as a percentage of covered payroll 7.31% 2.17% -5.70% 9.09% -40.72% Notes to schedule:
* - Fiscal year 2017 was the 1st year of implementation, therefore only five years are shown.

Expressed in thousands
Single Employer Defined Benefit OPEB Plan
Last 10 years*
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CITY OF CUPERTINO, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS - OPEB
For the year ended June 30, 2021

77. 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Actuarially determined contribution $ 1,117 $ 1,362 $ 1,300 $ 1,401 $ 124 Contributions in relation to the actuarially determined contributions 1,333 1,419 1,423 1,141 1,550 Contribution deficiency (excess) $ (216) $ (57) $ (123) $ 260 $ (1,426) Covered payroll $ 17,255 $ 19,153 $ 20,086 $ 21,643 $ 23,082 Contributions as a percentage of covered payroll 7.73% 7.41% 7.08% 5.27% 6.72% Notes to schedule:
* - Fiscal year 2017 was the 1st year of implementation, therefore only five years are shown.

Valuation Date 1/1/2021
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method 2.65%
Remaining amortization period Varies by Entry age and Service Asset valuation method Market Value of Assets
Discount rate 6.50%
Amortization growth rate 2.75%
Ultimate rate of medical inflation 4.30%
Salary increases 2.75% plus merit component based on years of service Mortality CalPERS mortality assumptions
Expressed in thousands
Single Employer Defined Benefit OPEB Plan
Last 10 years*
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MAJOR GOVERNMENTAL FUNDS OTHER

THAN THE GENERAL FUND AND SPECIAL

REVENUE FUNDS

78. This section is provided for the presentation of budget-to-actual statements for the Public Facilities Corporation Debt Service Fund. Although the fund is considered to be a major government fund, budgetto-actual information in the basic financial statements is limited to the General Fund and major Special Revenue Funds. All other major governmental fund schedules with such information are therefore included as Supplemental Information. The Capital Projects Funds are budgeted on a major project length basis and therefore not comparable on an annual basis.

CITY OF CUPERTINO, CALIFORNIA

PUBLIC FACILITIES CORPORATION DEBT SERVICE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
For the year ended June 30, 2021

79. Variance
Positive
Original Final Actual (Negative)
Revenues
Use of money and property $ - $ - $ 332 $ 332
Total revenues - - 332 332
Expenditures
Debt service:

Principal 2,355,000 2,140,000 2,140,000 -
Interest and fiscal charges 814,138 807,080 798,747 8,333 Total expenditures 3,169,138 2,947,080 2,938,747 8,333
Excess (deficiency) of revenues
over expenditures (3,169,138) (2,947,080) (2,938,415) 8,665 Other financing sources (uses)
Proceeds from debt issuance 22,040,000 - 22,040,000 - Proceeds from debt issuance premium 3,878,704 - 3,878,704 - Payment to refunding agent (27,279,118) - (27,279,118) - Transfers in 3,169,138 3,169,138 3,169,138 - Transfers out (492,832) - (492,831) 1 Total other financing sources (uses) 3,169,138 1,315,892 1,315,893 1 Net change in fund balance $ (1,631,188) - $ (1,622,522) $ 8,666 Beginning fund balance 1,685,872
Ending fund balance $ 63,350
Budgeted Amounts
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NON-MAJOR GOVERNMENTAL FUNDS

80. All funds not considered as major funds on the Fund Financial Statements are consolidated in one column entitled "Other Governmental Funds." These non-major funds are identified and included in this supplementary section and includes the City's Special Revenue Funds and Capital Project Funds.

The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Storm Drain Improvement — Accounts for the construction and maintenance of storm drain facilities including drainage and sanitary sewer facilities. Revenues were collected from developers as a result of connections to the storm drainage sewer system.

Park Dedication — Accounts for the activity granted by the business and professions code of the State of California in accordance with the open space and conservation element of the City's General Plan. Revenues of this fund are restricted for the acquisition, improvement, expansion and implementation of the City's parks and recreation facilities.

Environmental Management / Clean Creeks — Accounts for all activities related to operating the non-point source pollution program. A parcel tax provides revenues.

Traffic Impact – Accounts for development impact fees and related that ensure that new development and redevelopment projects pay their “fair share” to mitigate traffic impacts.

Capital Projects Funds account for the financial resources committed to the construction or improvement of major facilities.

Stevens Creek Corridor Park Capital Projects Fund — Accounts for the design and construction of the Stevens Creek Corridor Park projects.
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NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2021

81. Total
Storm Environmental Nonmajor
Drain Park Management/ Traffic Stevens Creek Governmental Improvement Dedication Clean Creeks Impact Corridor Park Funds Assets
Cash and investments $ 4,084,025 $ 9,708,075 $ 1,874,887 $ 468,998 $ 179,937 $ 16,315,922 Accounts receivable - 600 21,561 - - 22,161
Total assets $ 4,084,025 $ 9,708,675 $ 1,896,448 $ 468,998 $ 179,937 $ 16,338,083 Liabilities
Accounts payable and
accruals $ - $ - $ 8,825 $ - $ 880 $ 9,705
Total liabilities - - 8,825 - 880 9,705
Fund balances
Restricted 4,084,025 9,708,675 1,887,623 468,998 16,149,321 - Assigned - - - 179,057 - 179,057 Total fund balances 4,084,025 9,708,675 1,887,623 468,998 179,057 16,328,378 Total liabilities and
fund balances $ 4,084,025 $ 9,708,675 $ 1,896,448 $ 468,998 $ 179,937 $ 16,338,083 Fund
Capital Projects
Special Revenue Funds
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CITY OF CUPERTINO, CALIFORNIA

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES
For the year ended June 30, 2021

82. Fund
Total
Storm Environmental Nonmajor
Drain Park Management/ Traffic Stevens Creek Governmental Improvement Dedication Clean Creeks Impact Corridor Park Funds Revenues
Taxes $ 81,471 $ 104,201 $ - $ - $ 185,672 - $
Use of money and property 9,547 23,188 263 1,151 (2,136) 32,013 Charges for services - 1,475,982 4 226,728 1,702,714 - Fines and forfeitures - - 5,065 - - 5,065 Other revenue - 600 - - - 600
Total revenues 91,018 127,993 1,481,310 227,879 (2,136) 1,926,064 Expenditures
Current:

Public works 1,000 1,374,667 - - 2,651 1,378,318
Capital outlay 2,749,741 - - - 13,200 2,762,941
Total expenditures 1,000 2,749,741 1,374,667 - 15,851 4,141,259 Excess of revenues over
(under) expenditures 90,018 (2,621,748) 106,643 227,879 (17,987) (2,215,195) Other finances sources (uses)
Transfers in - - - - - - Transfers out (15,000) - - - - (15,000) Total other financing sources (uses) (15,000) - - - - (15,000) Net change in fund balances 90,018 (2,636,748) 106,643 227,879 (17,987) (2,230,195) Beginning fund balances 3,994,007 12,345,423 1,780,980 241,119 197,044 18,558,573 Ending fund balances $ 4,084,025 $ 9,708,675 $ 1,887,623 $ 468,998 $ 179,057 $ 16,328,378 Special Revenue Funds
Capital Projects
780
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NON-MAJOR GOVERNMENTAL FUNDS

SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL
For the year ended June 30, 2021
(Continued)

83. Variance
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Taxes $ 76,984 $ 76,984 $ 81,471 $ 4,487
Use of money and property - - 9,547 9,547
Charges for services - - - - Fines for forfeitures - - - - Other revenue - - - - Total revenues 76,984 76,984 91,018 14,034 Expenditures
Current:

Public works 1,000 1,000 1,000 - Capital outlay - - - - Total expenditures 1,000 1,000 1,000 - Excess (deficiency) of revenues over expenditures 75,984 75,984 90,018 14,034
Other financing sources (uses)
Transfers (out) - - - - Total other financing sources (uses) - - - - Net change in fund balance $ 75,984 $ 75,984 90,018 $ 14,034 Beginning fund balance 3,994,007
Ending fund balance $ 4,084,025
Storm Drain Improvement
Special Revenue Funds
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NON-MAJOR GOVERNMENTAL FUNDS

SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL
For the year ended June 30, 2021
(Continued)

84. Variance
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Taxes $ - $ 104,201 - $ $ 104,201
Use of money and property - 23,188 - 23,188
Charges for services - - 4 4
Fines for forfeitures - - - - Other revenue - - 600 600 Total revenues - 127,993 - 127,993
Expenditures
Current:

Public works - - - - Capital outlay 9,541 2,749,741 2,749,741 - Total expenditures 9,541 2,749,741 2,749,741 - Excess (deficiency) of revenues over expenditures (9,541) (2,749,741) (2,621,748) 127,993 Other financing sources (uses)
Transfers (out) (15,000) (15,000) (15,000) - Total other financing sources (uses) (15,000) (15,000) (15,000) - Net change in fund balance $ (24,541) $ (2,764,741) (2,636,748) $ 127,993 Beginning fund balance 12,345,423
Ending fund balance $ 9,708,675
Park Dedication
Special Revenue Funds
782
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CITY OF CUPERTINO, CALIFORNIA

NON-MAJOR GOVERNMENTAL FUNDS

SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL
For the year ended June 30, 2021

85. Variance
Original Final Positive
Budget Budget Actual (Negative)
Revenues
Taxes $ - $ - $ - $ - Use of money and property 905 905 263 (642) Charges for services 1,522,493 1,553,406 1,475,982 (77,424) Fines for forfeitures 10,000 10,000 5,065 (4,935)
Other revenue - - - - Total revenues 1,533,398 1,564,311 1,481,310 (83,001) Expenditures
Current:

Public works 1,794,154 1,693,783 1,374,667 319,116
Capital outlay - - - - Total expenditures 1,794,154 1,693,783 1,374,667 319,116 Excess (deficiency) of revenues
over expenditures (260,756) (129,472) 106,643 236,115
Other financing sources (uses)
Transfers (out) - - - - Total other financing sources (uses) - - - - Net change in fund balance $ (260,756) $ (129,472) 106,643 $ 236,115 Beginning fund balance 1,780,980
Ending fund balance $ 1,887,623
Environmental Management/Clean Creeks
Special Revenue Funds
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NON-MAJOR ENTERPRISE FUND

86. Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City has identified the fund below as a nonmajor proprietary fund for fiscal 2020-21.

Blackberry Farm Fund: This fund accounts for activities related to operating the City-owned golf course. 784
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NON-MAJOR ENTERPRISE FUND

COMBINING STATEMENT OF NET POSITION
For the year ended June 30, 2021

87. Blackberry
Farm
ASSETS
Current assets
Cash and cash investments (Note 2) $ 1,137,554
Total current assets 1,137,554
Noncurrent assets
Capital assets (Note 5):

Depreciable, net of
accumulated depreciation 23,706
Total non current assets 23,706
Total assets 1,161,260

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 10) 59,310
Related to OPEB (Note 11) 8,121
Total deferred outflows of resources 67,431

LIABILITIES
Current liabilities
Accounts payable and accruals 11,582
Compensated absences (Note 1) 211
Unearned revenue 58,612
Total current liabilities 70,405
Noncurrent liabilities
Compensated absences (Note 1) 2,594
Net pension liability (Note 10) 278,020
Total noncurrent liabilities 280,614
Total liabilities 351,019

DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 10) 4,466
Related to OPEB (Note 11) 4,696
Total deferred inflows of resources 9,162
NET POSITION (Note 7)
Net investment in capital assets 23,706
Unrestricted 844,804
Total Net Position $ 868,510
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NON-MAJOR ENTERPRISE FUND

COMBINING STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN NET POSITION
For the year ended June 30, 2021

88. Blackberry
Farm
Operating revenues
Charges for services $ 564,126
Other 46,477
Total operating revenue 610,603
Operating expenses
Salaries and benefits 107,567
Materials and supplies 174,183
Contractual services 250,692
Depreciation (Note 5) 2,832
Total operating expenses 535,274
Operating income (loss) 75,329
Nonoperating revenues
Investment income 2,083
Total nonoperating revenues 2,083
Income (loss) before transfers 77,412
Transfers in (Note 4) 500,000
Changes in net position 577,412
Net position - beginning of year 291,098
Net position - end of year $ 868,510
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NON-MAJOR ENTERPRISE FUND

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2021

89. Blackberry
Farm
Cash flows from operating activities
Cash received from customers $ 646,130
Cash payments to suppliers for
goods and services (442,996)
Cash payments to employees for salaries and benefits (110,164) Net cash provided (used) by operating activities 92,970 Cash flows from noncapital financing activities
Transfers in 500,000
Cash flows from noncapital financing activities 500,000 Cash Flows from Investing Activities
Interest received 2,083
Cash flows from investing activities 2,083
Net cash flows 595,053
Cash and investments at beginning of year 542,501
Cash and investments at end of year $ 1,137,554
Reconciliation of operating income (loss) to
to net cash provided by operating activities:

Operating income (loss) $ 75,329
Adjustments to reconcile operating income to
net cash provided by operating activities:

Depreciation 2,832
Change in assets, deferred outflows of resources, liabilities, and deferred inflows of resources
Due to retirement system 2,157
Due to OPEB system (4,735)
Accounts payable and accruals (18,121)
Unearned revenue 35,527
Compensated absences (19)
Net cash provided (used) by operating activities $ 92,970 787
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INTERNAL SERVICE FUNDS

90. Internal Service Funds are used to finance and account for special activities and services provided by one department or program to other departments of the City on a cost reimbursement basis.

The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund are eliminated by netting them against the operations of the City departments that generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presented separately in the Fund financial statements.

Information Technology - Accounts for the activities related to the maintenance and replacement of the City's technology infrastructure.

Workers' Compensation - Accounts for the activities in support of the self-insured workers' compensation program.

Equipment Revolving - Accounts for the activities related to the maintenance and replacement of the City's vehicle fleet and other equipment.

Compensated Absences and Long-Term Disability - Accounts for accrued leave payouts and the City's long term disability insurance program.

Retiree Medical - Accounts for funds set-aside for other post-employment retirement benefits. 788
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INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
For the year ended June 30, 2021

91. Compensated
Absences and
Information Workers' Equipment Long-Term Retiree
Technology Compensation Revolving Disability Medical Total ASSETS
Current assets:

Cash and investments $ 2,497,050 $ 3,976,757 $ 408,079 $ 669,671 $ 157,589 $ 7,709,146 Total current assets 2,497,050 3,976,757 408,079 669,671 157,589 7,709,146 Noncurrent assets:

Net OPEB asset (Note 11) 474,902 5,001 146,717 - - 626,620 Capital assets (Note 5):

Capital assets, depreciable net
of accumulated depreciation 868,003 - 2,477,809 - - 3,345,812 Total noncurrent assets 1,342,905 5,001 2,624,526 - - 3,972,432 Total assets 3,839,955 3,981,758 3,032,605 669,671 157,589 11,681,578

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 10) 401,132 13,826 126,234 - - 541,192 Related to OPEB (Note 11) 79,652 2,079 25,669 - - 107,400 Total deferred outflows of resources 480,784 15,905 151,903 - - 648,592

LIABILITIES
Current liabilities
Accounts payable and accruals 206,651 - 25,724 - - 232,375 Accrued payroll and benefits - - 72 - - 72
Due to other funds - - 539,204 - - 539,204
Compensated absences 39,873 1,311 5,004 - - 46,188
Claims payable - 245,000 - - - 245,000
Total current liabilities 246,524 246,311 570,004 - - 1,062,839 Noncurrent liabilities
Compensated absences 283,554 9,336 35,582 - - 328,472
Claims payable - 1,129,000 - - - 1,129,000
Net pension liability (Note 10) 2,216,081 67,621 639,779 - - 2,923,481 Total noncurrent liabilities 2,499,635 1,205,957 675,361 - - 4,380,953 Total liabilities 2,746,159 1,452,268 1,245,365 - - 5,443,792

DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 10) 2,878 189 539 - - 3,606
Related to OPEB (Note 11) 428,063 4,860 136,778 - - 569,701 Total deferred inflows of resources 430,941 5,049 137,317 - - 573,307

NET POSITION
Net investment in capital assets 868,003 - 2,477,809 - - 3,345,812 Unrestricted 275,636 2,540,346 (675,983) 669,671 157,589 2,967,259 Total net position $ 1,143,639 $ 2,540,346 $ 1,801,826 $ 669,671 $ 157,589 $ 6,313,071 789
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INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN NET POSITION
For the year ended June 30, 2021

92. Compensated
Absences and
Information Workers' Equipment Long-Term Retiree
Technology Compensation Revolving Disability Medical Total Operating revenues
Charges for services $ 2,681,434 $ 246,379 $ 1,633,518 $ 128,134 $ 4,689,465 - $ Other - - 9,799 - - 9,799
Total operating revenues 2,681,434 246,379 1,643,317 128,134 - 4,699,264 Operating expenses Salaries and related expenses 1,915,383 38,415 430,839 1,220,074 - 3,604,711 Materials and supplies 980,049 24,572 297,859 7,767 10,982 1,321,229 Contractual services 126,221 - 75,743 - - 201,964
Insurance claims and premiums - 35,104 - 827,121 - 862,225 Depreciation 299,745 - 669,046 - - 968,791
Total operating expenses 3,321,398 98,091 1,473,487 834,888 1,231,056 6,958,920 Operating income (loss) (639,964) 148,288 169,830 (706,754) (1,231,056) (2,259,656) Nonoperating revenue (expenses)
Interest income 9,344 9,914 2,033 4,157 7,851 33,299
Gain on sale of capital assets - - 89,981 - - 89,981
Total nonoperating
revenue (expenses) 9,344 9,914 92,014 4,157 7,851 123,280 Income (loss) before transfers (630,620) 158,202 261,844 (702,597) (1,223,205) (2,136,376) Transfers in 245,000 - 6,000 193,000 46,000 490,000
Change in net position (385,620) 158,202 267,844 (509,597) (1,177,205) (1,646,376) Beginning net position 1,529,259 2,382,144 1,533,982 1,179,268 1,334,794 7,959,447 Ending net position $ 1,143,639 $ 2,540,346 $ 1,801,826 $ 669,671 $ 157,589 $ 6,313,071 790
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INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2021
(Continued)

93. Compensated
Absences and
Information Workers' Equipment Long-Term Retiree
Technology Compensation Revolving Disability Medical Total Cash flows from operating activities
Cash received from customers $ 2,681,434 $ 253,379 $ 1,643,317 $ 128,134 $ 4,706,264 - $ Cash payments to suppliers for
goods and services (1,131,712) (24,572) (445,563) (22,050) (10,982) (1,634,879) Cash payments to employees (1,840,491) (37,099) (440,529) (1,220,074) - (3,538,193) Cash payment for judgment
and claims (188,104) - - (827,121) (1,015,225) - Net cash from operating activities (290,769) 3,604 757,225 (721,037) (1,231,056) (1,482,033) Cash flows from noncapital
financing activities
Transfers in 245,000 - 6,000 193,000 46,000 490,000
Net cash from noncapital
financing activities 245,000 - 6,000 193,000 46,000 490,000 Cash flows from capital and related
financing activities
Acquisition of capital assets (212,512) (448,937) - - (661,449) - Sale of capital assets - - 91,758 - - 91,758 Net cash from capital and related
financing activities (212,512) (357,179) - - (569,691) - Cash flows from investing activities Interest received 9,344 9,914 2,033 4,157 7,851 33,299
Net cash flows from
investing activities 9,344 9,914 2,033 4,157 7,851 33,299 Net cash flows (248,937) 13,518 408,079 (523,880) (1,177,205) (1,528,425) Cash and investments beginning of year 2,745,987 3,963,239 1,193,551 - 1,334,794 9,237,571 Cash and investments end of year $ 2,497,050 $ 3,976,757 $ 408,079 $ 669,671 $ 157,589 $ 7,709,146 791
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INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
For the year ended June 30, 2021

94. Compensated
Absences and
Information Workers' Equipment Long-Term Retiree
Technology Compensation Revolving Disability Medical Total Reconciliation of operating income (loss)
to net cash flows from operating activities
Operating income (loss) $ (639,964) $ 148,288 $ 169,830 $ (706,754) $ (1,231,056) $ (2,259,656) Adjustments to reconcile operating
income (loss) to net cash flows
from operating activities
Depreciation 299,745 - 669,046 - 968,791 - Change in assets, deferred outflows of resources, liabilities and deferred inflows of resources
Accounts receivable - 7,000 - - - 7,000
Due to retirement system 116,645 2,587 28,675 - 147,907 - Due to OPEB system (124,054) (2,851) (42,970) - (169,875) - Accounts payable and accruals (25,442) - (71,961) (14,283) (111,686) - Compensated absences 82,301 1,580 4,605 - - 88,486 Claims payable (153,000) - - - (153,000) - Cash flows from operating activities $ (290,769) $ 3,604 $ 757,225 $ (721,037) $ (1,231,056) $ (1,482,033) 792
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95. STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:

1. Net Position/Assets by Component

2. Changes in Net Position/Assets

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant own-source revenue, property tax.

1. Assessed and Estimated Actual Value of Taxable Property

2. Direct and Overlapping Property Tax Rates

3. Principal Property Taxpayers

4. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:

1. Ratios of Outstanding Debt by Type

2. Direct and Overlapping Bonded Debt

3. Legal Debt Margin Information

4. Ratio of General Bonded Debt Outstanding
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

1. Demographic and Economic Statistics

2. 2021 Employer Ranking
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:

1. Full-Time Equivalent Employees by Function/Program

2. Operating Indicators by Function/Program

3. Capital Assets Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental Activities
Net investment in capital assets $ 117,440,257 $ 116,343,918 $ 122,081,223 $ 131,425,677 $ 148,168,074 $ 153,239,534 $ 167,606,366 $ 170,973,897 $ 177,128,134 $ 186,503,116 Restricted 7,572,865 8,351,118 24,232,367 38,327,705 34,861,807 34,991,692 32,073,195 45,405,508 48,005,800 53,711,040 Unrestricted 38,117,361 47,558,701 63,150,548 51,003,950 51,164,063 59,385,309 50,457,871 51,190,017 66,493,336 83,458,299 Total governmental activities net position/assets 163,130,483 172,253,737 209,464,138 220,757,332 234,193,944 247,616,535 250,137,432 267,569,422 291,627,270 323,672,455 Business-Type Activities
Net investment in capital assets 824,687 762,013 1,110,414 2,079,561 1,708,183 1,972,169 1,597,700 1,318,744 1,118,882 2,090,530 Unrestricted 10,057,331 10,865,479 10,292,210 6,604,578 7,375,444 9,092,584 8,051,015 6,737,758 8,134,944 9,374,129 Total business-type activities net position/assets 10,882,018 11,627,492 11,402,624 8,684,139 9,083,627 11,064,753 9,648,715 8,056,502 9,253,826 11,464,659 Primary Government
Net investment in capital assets 118,264,944 117,105,931 123,191,637 133,505,238 149,876,257 155,211,703 169,204,066 172,292,641 178,247,016 188,593,646 Restricted 7,572,865 8,351,118 24,232,367 38,327,705 34,861,807 34,991,692 32,073,195 45,405,508 48,005,800 53,711,040 Unrestricted 48,174,692 58,424,180 73,442,758 57,608,528 58,539,507 68,477,893 58,508,886 57,927,775 74,628,280 92,832,428 (1), (2) $ 174,012,501 $ 183,881,229 $ 220,866,762 $ 229,441,471 $ 243,277,571 $ 258,681,288 $ 259,786,147 $ 275,625,924 $ 300,881,096 $ 335,137,114 (1) Represents net assets thru June 30, 2012 and net position after that. (2) Noted that restatements due to prior period adjustments and changes in accounting principles are not reflected in the prior year balances.

Fiscal Year Ended June 30

CITY OF CUPERTINO
Net Positions/Assets by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
(Unaudited)

96. 794
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental Activities:

Administration $ 1,837,072 $ 2,367,255 $ 4,529,539 $ 3,286,919 $ 3,710,388 $ 2,873,744 $ 5,612,733 $ 6,849,046 $ 7,974,520 $ 3,637,467 Law enforcement 8,776,633 9,274,536 10,062,192 10,705,328 11,316,271 12,528,328 12,674,042 13,381,113 14,698,130 15,211,646 Public and environmental affairs 1,743,151 1,595,982 512,895 649,442 575,260 1,884,165 3,244,846 3,210,343 3,637,354 1,721,729 Administrative services 4,309,503 4,171,440 2,662,008 4,300,336 2,994,611 5,898,479 4,415,647 4,290,818 5,175,596 5,358,183 Recreation services 4,577,243 4,473,861 4,866,974 5,365,282 5,758,194 10,651,557 9,352,551 7,389,915 8,763,194 1,182,662 Community development 4,922,237 4,676,273 9,108,949 5,976,797 6,259,734 13,775,591 16,789,351 10,470,973 10,286,317 11,495,788 Public works 20,387,508 22,149,063 21,143,331 27,893,361 31,313,396 32,491,244 28,995,382 31,870,165 33,339,191 41,870,240 Interest on long-term debt 1,837,655 1,256,922 1,130,428 1,120,138 1,077,538 1,035,738 993,038 949,438 882,837 397,682 Total governmental activities expense 48,391,002 49,965,332 54,016,316 59,297,603 63,005,392 81,138,846 82,077,590 78,411,811 84,757,139 80,875,397 Business-Type Activities:

Resources recovery 1,566,229 1,764,993 2,159,047 2,548,461 2,997,200 2,991,177 2,594,511 1,735,885 2,213,404 1,670,261 Blackberry farm 460,698 463,336 571,000 547,185 576,177 597,406 656,112 645,469 663,663 535,274 Cupertino sports center 1,897,611 2,011,483 2,221,703 2,269,420 2,299,210 2,159,243 2,633,748 3,036,037 2,883,903 2,182,900 Recreation programs 1,985,618 2,025,416 2,730,765 2,342,457 3,136,011 2,351,501 3,232,593 2,923,336 3,141,225 1,117,244 Total business-type activities expense 5,910,156 6,265,228 7,682,515 7,707,523 9,008,598 8,099,327 9,116,964 8,340,727 8,902,195 5,505,679 Total primary government expense 54,301,158 56,230,560 61,698,831 67,005,126 72,013,990 89,238,173 91,194,554 86,752,538 93,659,334 86,381,076 Program Revenues
Governmental Activities:

Charges for services:

Administration 6,454 5,676 1,087,393 322,534 369,069 3,992,716 5,062,988 1,319,395 2,091,811 2,387,412 Law enforcement 696,498 637,595 725,631 590,378 664,483 603,194 732,544 889,923 1,102,888 550,051 Public and environmental affairs - - - 41,352 41,352 - - - - - Administrative services - - - 481,616 359,148 3,565,627 2,635,885 3,113,731 3,889,180 5,232,679 Recreation services 1,166,323 970,292 955,081 1,798,134 1,421,185 2,016,159 1,589,134 1,563,262 1,309,906 264,426 Community development 4,919,216 6,765,564 6,649,292 8,511,745 10,534,457 10,902,822 8,598,935 7,470,690 5,859,847 5,736,587 Public works 503,225 593,501 7,916,897 2,869,357 6,358,870 6,873,487 4,720,646 4,504,104 5,657,315 3,966,206 Operating grants and contributions 2,508,917 2,752,493 10,000,131 6,002,617 1,851,282 2,313,632 4,819,696 2,557,470 5,794,443 5,998,209 Capital grants and contributions 780,761 719,880 569,159 4,022,190 362,491 245,288 271,587 1,082,243 1,046,756 1,792,376 Total governmental activities program revenue 10,581,394 12,445,001 27,903,584 24,639,923 21,962,337 30,512,925 28,431,415 22,500,818 26,752,146 25,927,946 Business-Type Activities:

Charges for services:

Resources recovery 1,727,783 1,882,517 2,074,251 2,591,276 2,664,888 2,792,190 2,559,862 1,750,279 1,821,677 1,819,861 Blackberry farm 411,056 386,753 302,472 388,091 334,529 325,224 345,667 316,615 338,212 610,603 Cupertino sports center 1,965,684 2,150,139 2,188,127 2,152,498 2,224,146 2,238,023 2,403,665 2,349,468 2,365,667 1,810,194 Recreation programs 2,325,705 2,409,720 2,480,209 2,532,800 2,466,336 2,778,588 2,516,678 1,986,781 1,588,576 590,871 Operating grants and contributions - - - - - - - - - -
Total business-type activities program revenue 6,430,228 6,829,129 7,045,059 7,664,665 7,689,899 8,134,025 7,825,872 6,403,143 6,114,132 4,831,529 Total primary government program revenue 17,011,622 19,274,130 34,948,643 32,304,588 29,652,236 38,646,950 36,257,287 28,903,961 32,866,278 30,759,475 (continued)
Fiscal Year Ended June 30

CITY OF CUPERTINO
Change in Net Positions/Assets
Last Ten Fiscal Years
(Accrual basis of accounting)
(Unaudited)

97. 795
CC 05-17-2022
795 of 2420
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net (Expense) Revenue:

Governmental activities $ (37,809,608) $ (37,520,331) $ (26,112,732) $ (34,657,680) $ (41,043,055) $ (50,625,921) $ (53,646,175) $ (55,910,993) $ (58,004,993) $ (54,947,451) Business-Type activities 520,072 563,901 (637,456) (42,858) (1,318,699) 34,698 (1,291,092) (1,937,584) (2,788,063) (674,150) Total primary government net expense (37,289,536) (36,956,430) (26,750,188) (34,700,538) (42,361,754) (50,591,223) (54,937,267) (57,848,577) (60,793,056) (55,621,601) General Revenues and Transfers
Governmental Activities:

Taxes:

Property taxes 7,479,132 8,793,110 9,169,183 - 11,864,027 13,251,840 14,881,533 17,082,005 18,117,304 19,197,994 Property taxes in lieu of motor vehicle fee 4,487,412 4,772,355 5,289,476 - 6,330,436 6,967,237 7,552,272 8,219,090 8,489,541 9,079,845 Incremental property tax 202,793 - - - - - - - - -
Sales tax 17,326 18,721,193 19,794,036 - 21,350,056 26,932,012 26,164,531 24,901,779 35,657,214 42,581,070 Transient occupancy tax 3,112,934 3,768,504 4,590,156 - 5,852,244 6,023,681 6,810,718 8,901,337 7,286,083 2,141,058 Utility user tax 3,264,896 2,994,526 3,098,639 - 3,370,830 3,082,407 3,146,398 3,089,922 3,182,086 3,074,358 Franchise tax 2,808,136 2,848,950 2,775,892 - 3,478,024 3,409,572 3,563,820 3,445,253 3,418,908 3,368,286 Other taxes 1,377,211 4,561,219 18,791,559 - 2,818,019 3,258,118 1,943,652 3,299,587 1,774,235 3,022,333 Intergovernmental (1) 29,064 30,256 25,294 - 24,111 26,118 31,013 28,844 47,391 43,675 Investment earnings 61,096 176,782 133,243 40,751 807,287 694,730 916,638 3,258,550 5,690,723 4,147,907 Miscellaneous 82,684 126,690 57,005 (2) 219,053 2,004,906 1,834,492 1,187,741 1,922,356 3,185,110 Gain on sale of capital assets - - - 23,715,897 580 - 740,570 3,875 - - Extraordinary items (2) (1,130,797) - - - - - - - - -
Transfers - fund closings (3) - - - - - 272,011 - - - - Transfers 207,000 (150,000) (401,350) 872,340 (1,635,000) (1,874,120) 107,030 (75,000) (3,523,000) (2,849,000) Total governmental activities 21,998,887 46,643,585 63,323,133 24,628,986 54,479,667 64,048,512 67,692,667 73,342,983 82,062,841 86,992,636 Business-Type Activities:

Investment earnings 12,338 31,573 11,238 42,531 82,187 59,012 75,663 270,371 462,387 35,983 Transfers (207,000) 150,000 401,350 (872,340) 1,635,000 1,874,120 (107,030) 75,000 3,523,000 2,849,000 Total business-type activities (194,662) 181,573 412,588 (829,809) 1,717,187 1,933,132 (31,367) 345,371 3,985,387 2,884,983 Total primary government 21,804,225 46,825,158 63,735,721 23,799,177 56,196,854 65,981,644 67,661,300 73,688,354 86,048,228 89,877,619 Change in Net Position/Assets (4)
Governmental activities (15,810,721) 9,123,254 37,210,401 (10,028,694) 13,436,612 13,422,591 14,046,492 17,431,990 24,057,848 32,045,185 Business-Type activities 325,410 745,474 (224,868) (872,667) 398,488 1,967,830 (1,322,459) (1,592,213) 1,197,324 2,210,833 Total primary government $ (15,485,311) $ 9,868,728 $ 36,985,533 $ (10,901,361) $ 13,835,100 $ 15,390,421 $ 12,724,033 $ 15,839,777 $ 25,255,172 $ 34,256,018 (1) The 2006 state take-away of sales taxes, property taxes and vehicle license fees is reported in this category. (2) Asset transfer to Successor to Redevelopment Agency fiduciary trust in 2012. (3) Asset and liability transfer from the closed City Channel/Web Internal Service Fund in 2017. (4) Representes changes in net assets thru fiscal year ended June 30, 2012 and changes in net position after that.

Fiscal Year Ended June 30

CITY OF CUPERTINO
Change in Net Positions/Assets
Last Ten Fiscal Years
(Accrual basis of accounting)
(Unaudited)

98. 796
CC 05-17-2022
796 of 2420
2012 2013 2014 2015 2016 2017 2018 2019 (2) 2020 2021
General Fund
Nonspendable $ 1,003,438 $ 956,827 $ 3,363,065 $ 938,245 $ 937,381 $ 876,939 $ 464,893 $ 454,188 $ 3,449,341 $ 3,444,346 Restricted 695,564 725,903 - 761,653 888,374 1,016,771 1,254,578 9,469,670 14,324,757 20,140,419 Committed - - - - - 19,000,000 19,122,754 19,123,397 19,127,891 19,127,891 Assigned 17,729,297 16,400,000 16,400,000 28,849,679 20,500,000 4,638,181 9,963,310 1,979,202 3,176,882 4,906,139 Unassigned 6,669,379 17,961,579 23,197,378 8,774,966 29,869,085 28,057,799 21,704,922 27,896,128 34,426,942 49,231,996 Total General Fund 26,097,678 36,044,309 42,960,443 39,324,543 52,194,840 53,589,690 52,510,457 58,922,585 74,505,813 96,850,791 All Other Governmental Funds
Nonspendable - - - - - - - - - -
Restricted 6,877,301 7,625,215 24,232,367 37,566,052 33,973,433 33,974,921 30,818,617 35,935,838 33,681,043 33,570,621 Committed - - - 1,398,665 1,398,665 1,398,665 - - - -
Assigned 3,646,073 5,299,904 7,619,534 20,671,116 15,344,191 25,305,974 29,129,616 33,211,946 40,551,131 37,038,174 Unassigned - - (2,280,961) - - - - - - -
Total All Other Governmental Funds 10,523,374 12,925,119 29,570,940 59,635,833 50,716,289 60,679,560 59,948,233 69,147,784 74,232,174 70,608,795 Total Governmental Funds $ 36,621,052 $ 48,969,428 $ 72,531,383 $ 98,960,376 $ 102,911,129 $ 114,269,250 $ 112,458,690 $ 128,070,369 $ 148,737,987 $ 167,459,586 (1) The City implemented GASB Statement No. 54 under which governmental fund balances are reported as nonspendable, restricted, committed, assigned and unassigned compared to reserved and unreserved (2) The City established a trust to fund Other Post-Employment Benefit contributions, which is classified as a restriction in fund balance.

Fiscal Year Ended June 30

CITY OF CUPERTINO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting
(Unaudited)

99. 797
CC 05-17-2022
797 of 2420
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes $ 40,265,944 $ 48,382,570 $ 72,211,724 $ 55,134,238 $ 55,462,956 $ 62,924,867 $ 64,062,924 $ 68,938,973 $ 77,925,371 $ 82,464,944 Use of money and property 661,602 744,196 764,299 915,933 1,654,702 1,425,629 1,543,818 3,896,813 6,259,342 4,447,970 Intergovernmental 2,678,888 2,841,407 3,069,400 7,210,562 2,532,025 2,585,038 5,122,296 3,668,557 6,888,590 7,834,260 Licenses and permits 2,900,936 3,502,617 3,679,943 3,170,445 3,073,110 2,536,925 2,757,928 4,102,665 4,692,847 4,068,238 Charges for services 3,273,946 4,515,066 10,744,113 5,203,371 17,249,123 24,103,167 15,638,247 13,385,698 13,937,950 13,601,302 Fines and forfeitures 661,899 560,417 616,889 554,002 564,903 603,194 602,934 534,012 344,008 134,459 Other 264,302 57,828 545,052 542,429 1,289,013 2,004,904 1,834,492 1,187,741 1,922,356 3,185,110 Total revenues 50,707,517 60,604,101 91,631,420 72,730,980 81,825,832 96,183,724 91,562,639 95,714,459 111,970,464 115,736,283 Expenditures:

Current:

Administration 1,533,070 2,005,176 3,957,739 3,897,701 4,053,741 5,942,633 4,943,052 6,294,111 6,951,541 7,549,386 Law enforcement 8,445,917 8,783,885 9,626,121 10,283,772 10,988,735 11,939,095 12,362,621 13,108,732 14,151,413 14,776,409 Public and environmental affairs 1,659,856 1,486,910 477,852 624,295 544,718 1,864,746 2,835,768 2,843,540 3,223,185 1,836,725 Administrative services 4,103,982 3,772,714 2,444,670 3,226,164 2,811,117 5,054,539 4,430,300 4,197,582 4,617,787 5,196,299 Recreation services 4,319,983 4,083,822 4,536,519 5,047,548 5,441,200 9,361,934 8,686,076 8,996,118 7,688,935 4,787,914 Community development 4,762,229 4,395,601 8,424,254 5,180,659 6,102,820 7,431,292 12,907,086 9,359,835 9,310,827 11,177,690 Public works 12,528,194 13,996,516 17,469,627 14,625,038 15,078,174 18,623,585 18,191,714 19,955,579 22,445,948 24,568,155 Capital Outlay 3,523,047 4,684,676 7,110,974 21,760,899 26,171,127 18,731,165 23,395,112 10,528,246 12,644,373 19,483,945 Debt service:

Principal repayment - 1,920,000 2,040,000 2,055,000 2,090,000 2,135,000 2,180,000 2,220,000 2,290,000 2,140,000 Interest and fiscal charges 1,837,665 1,256,922 1,130,428 1,120,138 1,077,538 1,035,738 993,038 949,438 882,837 798,747 Payment to refunded debt escrow agent 44,897,800 - - - - - - - - - Total expenditures 87,611,743 46,386,222 57,218,184 67,821,214 74,359,170 82,119,727 90,924,767 78,453,181 84,206,846 92,315,270 Excess (deficiency) of revenues over
(under) expenditures (36,904,226) 14,217,879 34,413,236 4,909,766 7,466,662 14,063,997 637,872 17,261,278 27,763,618 23,421,013 Other Financing Sources (Uses)
Proceeds from debt issuance 44,823,839 - - - - - - - - 22,040,000 Proceeds from debt issuance premium - - - - - - - - - 3,878,704 Payments to refunding agent - - - - - - - - - (27,279,118) Proceeds from sale of capital assets 421 - 37,569 23,814,257 580 - 872,250 3,875 - - Transfers in 6,484,426 8,438,707 13,610,304 39,408,990 11,905,724 26,446,090 31,028,218 19,407,613 35,208,276 12,876,969 Transfers in - fund closing - - - - - 260,374 - - - -
Transfers out (7,692,426) (10,308,210) (24,499,154) (39,177,284) (15,422,213) (29,412,340) (34,348,900) (21,061,087) (42,304,276) (16,215,969) Total other financing sources (uses) 43,616,260 (1,869,503) (10,851,281) 24,045,963 (3,515,909) (2,705,876) (2,448,432) (1,649,599) (7,096,000) (4,699,414) Extraordinary Item
Asset transferred to Successor Agencies - (1,130,797) - - - - - - - - Change in fund balances $ 6,712,034 $ 11,217,579 $ 23,561,955 $ 28,955,729 $ 3,950,753 $ 11,358,121 $ (1,810,560) $ 15,611,679 $ 20,667,618 $ 18,721,599 Debt service as a percentage of
noncapital expenditures (1) 55.6% 7.6% 6.3% 6.9% 6.6% 5.0% 4.7% 4.7% 4.4% 4.0% (1) Noncapital expenditures is total expenditures less capital assets added each year to the statement of net position/assets.

Fiscal Year Ended June 30

CITY OF CUPERTINO
Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
(Unaudited)
100. 798
CC 05-17-2022
798 of 2420
State Board of Total Assessed & Direct
Total Equalization Secured Est. Full Market Tax
Fiscal Year Secured (a) Unsecured (a) Non-Unitary Exemptions Valuation (a) Rate 2007 10,794,991,704 381,307,801 213,610 94,957,979 11,176,513,115 5.74% 2012 $ 13,219,574,367 $ 527,310,319 $ 1,390,000 $ 96,081,912 $ 13,748,274,686 6.24% 2013 13,882,147,291 738,243,050 1,390,000 108,468,872 14,621,780,341 6.20% 2014 15,391,656,690 813,117,019 1,390,000 113,744,809 16,206,163,709 5.62% 2015 16,133,637,244 965,141,148 - 119,476,276 17,098,778,392 5.61% 2016 18,308,720,226 1,086,786,901 - 114,223,063 19,395,507,127 5.59% 2017 20,196,258,418 1,150,311,942 - 118,257,368 21,346,570,360 5.98% 2018 22,024,906,420 1,114,123,426 - 122,805,695 23,139,029,846 6.19% 2019 23,402,123,229 1,779,936,377 - 125,245,819 25,182,059,606 6.38% 2020 24,370,718,536 1,641,863,322 - 138,025,761 26,012,581,858 6.50% 2021 25,397,331,860 2,423,984,683 - 145,644,653 27,821,316,543 6.46% (a) Net of exemptions
Source: HdL, Coren & Cone
Data Source: Santa Clara County Assessor 2011-12 - 2020-21 Combined Tax Rolls

CITY OF CUPERTINO
(Unaudited)
Last Ten Fiscal Years
Assessed and Estimated Actual Value of Taxable Property $0
$2
$4
$6
$8
$10
$12
$14
$16
$18 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Billions Secured Property Unsecured Property
101. 799
CC 05-17-2022
799 of 2420
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018-19 2019-20 2020-21 Basic Levy¹ 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Co. Housing Bond 2016 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.01266 0.01050 0.01000 0.00000 County Bond 2008 Hospital Facility 0.00470 0.00510 0.00350 0.00910 0.00880 0.00860 0.00820 0.00720 0.00690 0.00690 County Library Retirement Levy 0.00240 0.00240 0.00240 0.00240 0.00240 0.00240 0.00240 0.00240 0.00240 0.00240 County Retirement Levy 0.03880 0.03880 0.03880 0.03880 0.03880 0.03880 0.03880 0.03880 0.03880 0.03880 Cupertino Elementary 0.02900 0.05980 0.05250 0.05400 0.05190 0.05090 0.04960 0.03970 0.04150 0.04030 El Camino Hospital 2003 0.01290 0.01290 0.01290 0.01290 0.01290 0.01290 0.01000 0.01000 0.01000 0.01000 Foothill De Anza College 0.02970 0.02870 0.02900 0.02760 0.02400 0.02340 0.02200 0.02170 0.02080 0.03640 Fremont High 0.04150 0.03900 0.04050 0.03960 0.05250 0.04030 0.04640 0.04300 0.04790 0.04780 Los Gatos-Saratoga High 1998 0.03810 0.03680 0.03510 0.05160 0.04230 0.04690 0.04570 0.03040 0.01770 0.01930 MidPeninsula Open Space 2014 0.00000 0.00000 0.00000 0.00000 0.00080 0.00060 0.00090 0.00180 0.00160 0.00150 Santa Clara Unified 0.08360 0.08190 0.07070 0.07040 0.09420 0.08180 0.08280 0.07070 0.11760 0.10450 Santa Clara Valley Water District 0.00640 0.00690 0.00700 0.00650 0.00570 0.00860 0.00620 0.00420 0.00410 0.00370 Saratoga Elementary 0.04440 0.04520 0.04500 0.04580 0.04490 0.04560 0.04580 0.04580 0.04640 0.04850 West Valley College 0.01370 0.02890 0.02550 0.01200 0.02320 0.01960 0.02000 0.01980 0.01860 0.03110 Total Direct & Overlapping² Tax Rates 1.34520 1.38640 1.36290 1.37070 1.40240 1.38040 1.39146 1.34600 1.39530 1.39120 City's Share of 1% Levy Per Prop 13³ 0.05650 0.05652 0.05626 0.05617 0.05571 0.05962 0.06148 0.06320 0.06531 0.06515 General Obiligation Debt Rate
Redevelopment Rate⁴ 1.04760
Total Direct Rate⁵ 0.06238 0.06204 0.05623 0.05610 0.05588 0.05976 0.06187 0.06381 0.06499 0.06463 Notes:
²Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.

Data Source: Santa Clara County Assessor 2011/12 - 2020/21 Tax Rate Table

THE CITY OF CUPERTINO
Direct and Overlapping Property Tax Rates
(Rate per $100 of taxable value)
Last 10 Fiscal Years
³City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city.

ERAF general fund tax shifts may not be included in tax ratio figues.

Agency
⁴Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. ⁵Total Direct Rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.
¹In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 102. 800
CC 05-17-2022
800 of 2420
2021 Percentage of 2012 Percentage of
Assessed Total Assessed Assessed Total Assessed
Valuation Valuation Valuation Valuation
Apple Inc. $ 7,092,034,206 25.49% $ 916,229,008 9.36%
Main Street Cupertino 368,688,300 1.33% - 0.75%
Vallco Property Owner LLC 311,083,000 1.12% 92,759,700 1.63% Cupertino City Center 276,811,408 0.99% 136,245,008 0.73% Cupertino Property Development 208,775,727 0.75% - 0.58% Swift Results Way LLC 184,947,832 0.66% - 0.00%
Mission West Properties LP II ETAL 143,225,274 0.51% - 0.67% PR Cupertino Gateway LLC 133,326,728 0.48% - -
Markham Apartments LP 106,337,637 0.38% - -
Cupertino Hotel Owner LLC 99,134,506 0.36% - -
Total $ 8,924,364,618 32.07% $ 1,145,233,716 13.72%
Source: HdL, Coren & Cone

CITY OF CUPERTINO
Principal Property Taxpayers
Current Year and Ten Years Ago
(Unaudited)
Taxpayer
103. 801
CC 05-17-2022
801 of 2420
Percent of
Percent Delinquent Total Total Tax
Fiscal Total Current Tax of Levy Tax Tax Collections
Year Tax Levy Collections Collected (1) Collections (1) Collections to Tax Levy 2007 6,717,048 6,717,048 100.00% - 6,717,048 100.00%
2012 $ 7,681,925 $ 7,681,925 100.00% $ - $ 7,681,925 100.00% 2013 8,199,752 8,199,752 100.00% - 8,199,752 100.00%
2014 9,169,183 9,169,183 100.00% - 9,169,183 100.00%
2015 10,178,734 10,178,734 100.00% - 10,178,734 100.00% 2016 11,864,026 11,864,026 100.00% - 11,864,026 100.00% 2017 13,308,884 13,308,884 100.00% - 13,308,884 100.00% 2018 13,172,425 13,172,425 100.00% - 13,172,425 100.00% 2019 16,049,112 16,049,112 100.00% - 16,049,112 100.00% 2020 18,117,304 18,117,304 100.00% - 18,117,304 100.00% 2021 19,197,994 19,197,994 100.00% - 19,197,994 100.00% (1) Per the Teeter Plan, the City receives 100% of the tax levy, while the County receives delinquencies and penalties.

Source: City of Cupertino

CITY OF CUPERTINO
Property Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited)
104. 802
CC 05-17-2022
802 of 2420
Percentage
of Estimated % of
Fiscal Certificates Actual Market Value Personal
Year of Participation of Taxable Property Per Capita Income 2007 49,740,000 0.45% 929 1.60%
2012 $ 43,940,000 0.27% $ 744 1.56%
2013 42,020,000 0.26% 705 1.41%
2014 39,980,000 0.23% 671 1.38%
2015 37,925,000 0.20% 633 1.28%
2016 35,835,000 0.18% 598 1.21%
2017 33,700,000 0.15% 579 1.02%
2018 31,520,000 0.12% 525 0.87%
2019 29,300,000 0.11% 488 0.81%
2020 27,010,000 0.10% 451 0.71%
2021 22,040,000 0.08% 370 0.54%
Source: City of Cupertino

CITY OF CUPERTINO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Unaudited)
105. 803
CC 05-17-2022
803 of 2420
$ 27,821,316,543
Total Debt % City’s Share of
6/30/2021 Applicable (1) Debt 6/30/21
Santa Clara County $ 991,587,000 5.096% $ 50,531,274
Santa Clara County General Fund Obligations 812,685,000 5.096% 41,414,428 Santa Clara County Pension Obligations 341,399,000 5.096% 17,397,693 Santa Clara County Board of Education Certificates of Participation 2,670,000 5.096% 136,063 Foothill-DeAnza Community College District 1,251,133,487 13.454% 168,327,499 West Valley Community College District 635,310,000 1.634% 10,380,965 West Valley-Mission Community College District General Fund Obligations 62,200,000 1.634% 1,016,348 Santa Clara Unified School District 1,081,495,000 3.813% 41,237,404 Santa Clara County Vector Control District Certificates of Participation 1,756,000 5.096% 89,486 Fremont Union High School District 617,160,088 29.883% 184,425,949 Cupertino Union School District 274,238,303 50.963% 139,760,066 El Camino Hospital District 116,290,000 1.056% 1,228,022 Midpeninsula Regional Open Space District and General Fund Obligations 192,400,600 8.134% 15,649,865 Santa Clara Valley Water District Benefit Assessment 65,000,000 5.096% 3,312,400 Total Overlapping Tax and Assessment Debt 6,445,324,478 674,907,463 Direct Debt: City of Cupertino Certificates of Participation 22,040,000 100.000% 22,040,000 Total Direct and Overlapping General Fund Debt 22,040,000 22,040,000 Totals by Category: (3)
Total Direct Debt 22,040,000 22,040,000
Total Overlapping Debt 6,445,324,478 674,907,463
Combined Total Debt $ 6,467,364,478 $ 696,947,463
Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 2.43%

0.08%
Combined Total Debt 2.51%
(1)
(2) Principal amount as of 6/30/21.
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Direct and Overlapping Bonded Debt

CITY OF CUPERTINO
Sources: HdL, Coren & Cone
Overlapping Tax and Assessment Debt:
(Unaudited)
2020-21 Assessed Valuation
June 30, 2021
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable 106. 804
CC 05-17-2022
804 of 2420
Total net debt
Total Net Legal applicable to the
Fiscal Debt Debt Applicable Debt limit as a % of
Year Limit to Limit Margin debt limit
2007 408,373,114 - 408,373,114 -
2012 $ 495,734,039 $ - $ 495,734,039 $ -
2013 520,580,523 - 520,580,523 -
2014 577,187,126 - 577,187,126 -
2015 605,011,397 - 605,011,397 -
2016 686,577,008 - 686,577,008 -
2017 757,359,691 - 757,359,691 -
2018 825,933,991 - 825,933,991 -
2019 877,579,621 - 877,579,621 -
2020 913,901,945 - 913,901,945 -
2021 952,399,945 - 952,399,945 -
Debt Limit:

Secured property assessed value, net of exempt real property $ 25,397,331,860 Adjusted valuation - 25% of assessed valuation 6,349,332,965 Debt limit - 15% of adjusted valuation 952,399,945
Amount of Debt Subject to Limit:

Total Bonded Debt 22,040,000
Less: Certificates of Participation not subject to debt limit (22,040,000) Amount of debt subject to limit -
Legal Debt Margin $ 952,399,945
Source: City of Cupertino
Last Ten Fiscal Years
Note: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

CITY OF CUPERTINO
Legal Debt Margin Information
(Unaudited)
107. 805
CC 05-17-2022
805 of 2420
Ratio of General
Fiscal Assessed General Bonded Debt Bonded Debt to
Year Population Value Bonded Debt Per Capita Assessed Value 2007 53,549 11,176,513,115 - - - 2012 59,022 $ 13,748,274,686 $ - $ - $ -
2013 59,620 14,621,780,341 - - -
2014 59,946 17,098,778,392 - - -
2015 59,777 19,395,507,127 - - -
2016 58,185 19,395,507,127 - - -
2017 58,917 21,346,570,360 - - -
2018 60,091 23,139,029,846 - - -
2019 59,879 25,182,059,606 - - -
2020 59,549 27,821,316,543 - - -
2021 60,656 27,821,316,543 - - -
Sources: HdL, Coren & Cone

CITY OF CUPERTINO
Ratio of General Bonded Debt
Last Ten Fiscal Years
(Unaudited)
108. 806
CC 05-17-2022
806 of 2420
Fiscal
Year
City
Population
(1)
County
Population
(1)
City
Population
% of County
City Personal
Income (2)
Per
Capita
Personal
Income
(2)
**Public
School
Enrollment
City
Unemploy
ment Rate
(%) (3)
County
Unemploy
ment Rate
(%) (3)
Median
Age (4)
% of
Population
Over 25
with High
School
Degree
% of
Population
Over 25
with
Bachelor's
Degree
2011-12 59,022 1,809,378 3.26% 2,818,655,000 47,756 10,625 6.3% - 39.2 97.0% 74.7% 2012-13 59,620 1,842,254 3.24% 2,985,829,000 50,081 29,699 4.1% 8.4% 39.5 96.7% 75.5% 2013-14 59,946 1,868,558 3.21% 3,090,636,000 51,557 29,904 3.4% 6.8% 40.0 96.2% 74.2% 2014-15 59,777 1,889,638 3.16% 3,186,772,000 53,311 29,871 4.2% 3.8% 40.0 96.5% 74.6% 2015-16 58,185 1,927,888 3.02% 3,340,132,000 57,405 29,684 3.4% 4.2% 40.2 96.5% 75.6% 2016-17 58,917 1,938,180 3.04% 3,486,805,000 59,181 29,467 3.0% 3.8% 40.6 96.7% 76.0% 2017-18 60,091 1,938,153 3.10% 3,620,255,000 60,246 29,255 3.3% 3.8% 40.7 97.1% 76.6% 2018-19 59,879 1,937,570 3.09% 3,821,320,000 63,817 29,240 2.6% 2.3% 41.1 97.1% 77.2% 2019-20 59,549 1,927,852 3.09% 4,114,967,000 69,102 29,550 2.4% 10.7% 41.1 97.2% 78.1% 2020-21 60,656 1,936,259 3.13% 4,378,045,000 74,485 30,900 4.9% 5.2% 41.6 97.2% 78.8% Notes and Data Sources:

Population: California State Department of Finance. Unemployment Data: California Employment Development Department Income, Age, and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 201- and later - Income, Age and education Data - US Census Bureau, most recent American Community Survey **Reported Public School Enrollment reflects the total number of students in the Fremont Union High School District and Cupertino Union School District.

Previously published reports included Fremont Union High School District only.

City of Cupertino
Demographic and Economic Statistics
Last Ten Fiscal Years
109. 807
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807 of 2420

CITY OF CUPERTINO
2021 Employer Ranking
(Unaudited)
Employer Ranking Employer_________________ Ranking
Apple 1 Panasonic Corporation 11
Cupertino Union School District 2 Pleasant View Convalescent Hospital 12 Corinthian International Parking Services, Inc. 3 Sunny Retirement Home 13 Synophic Systems Inc. 4 City of Cupertino 14
De Anza Community College District 5 Ch Cupertino Owner LLC 15 Target Stores, Inc. 6 Zend Technologies Usa, Inc. 16
Fremont Union High School District 7 Mist Systems, Inc. 17 Forum Healthcare Center 8 County of Santa Clara 18
Whole Foods Market 9 Cupertino Lessee LLC 19
Mobileum, Inc. 10 Posh Bakery Inc. 20
Source: InfoUSA
110. 808
CC 05-17-2022
808 of 2420
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Council and Commissions 1.47 1.52 1.57 1.55 1.60 1.55 2.35 2.35 2.51 2.53 Administration 5.05 5.05 10.75 10.75 10.85 10.57 14.12 15.47 15.15 17.85 Innovation & Technology 6.95 6.90 11.00 10.25 11.40 13.95 14.55 15.05 14.95 11.93 Administrative Services 22.48 22.26 11.00 12.00 12.30 12.30 12.00 14.00 16.00 15.90 Parks & Recreation 29.78 29.53 29.48 31.28 32.18 33.08 35.13 34.80 32.10 31.90 Community Development 23.43 23.90 24.83 24.80 27.30 28.18 28.08 28.13 28.29 28.49 Public Works 73.59 73.59 74.12 77.12 82.12 84.12 84.52 84.95 88.75 90.15 Law Enforcement 0.00 0.00 2.00 2.00 2.00 2.00 2.00 2.00 0.00 0.00 Total 162.75 162.75 164.75 169.75 179.75 185.75 192.75 196.75 197.75 198.75 Source: City of Cupertino Budget

CITY OF CUPERTINO
Full-Time Equivalent City Employees by Function/Program Last Ten Fiscal Years
(Unaudited)
0 50
100
150
200
250
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Works
Community
Development
Parks &
Recreation
Administrative
Services
Innovation &
Technology
Administration
Council and
Commissions
111. 809
CC 05-17-2022
809 of 2420
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Law Enforcement Sheriff Response
Priority One-Respond within 5 minutes 4.84 Min. 3.76 Min. 4.30 Min. 4.90 Min. 4.90 Min. 5.07 Min 4.23 Min. 4.39 Min. 3.51 Min. 3.10 Min.

Priority Two-Respond within 9 minutes 6.44 Min. 5.98 Min. 6.39 Min. 6.56 Min. 6.56 Min. 8.00 Min. 7.49 Min. 6.23 Min. 6.37 Min. 5.96 Min.

Priority Three-Respond within 20 minutes 10.62 Min. 10.29 Min. 10.76 Min. 10.52 Min. 10.52 Min. 15.79 Min 14.79 Min. 12.11 Min. 11.96 Min. 12.05 Min.

Public Works
Street Sweeping 575 Curb Miles 575 Curb Miles 575 Curb Miles 575 Curb Miles 575 Curb Miles 534 Curb Miles 534 Curb Miles 534 Curb Miles 534 Curb Miles 534 Curb Miles Street Maintenance 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call Number of development permit applications received 428 434 428 230 Number of encroachment permits received 121 136 134 548 Storm Drain Inlets Inspected/Cleaned 815 1063 1638 1802 Roadway Signs Repaired/Replaced 404 721 346 1151
Number of trees planted vs. removed 53/67 155/192 164/190 197/187 Parks & Recreation
Number of reservations at Quinlan Center 560 402 526 0
Number of rounds of golf at BBF Golf Course 28,193 27,205 28,952 43,650 Sports Center Memberships 1,776 1,852 1,950 2,000 1,989 2,015 1,850 1,952 1,802 1,792 Number of Senior Center classes offered 246 320 258 76
Senior Center Memberships 2,470 2,456 2,623 2,549 2,493 2,094 2,260 2,171 2,171 1,528 Quinlan Community Center Rental Revenue $133,000 $120,000 $109,342 $110,033 $104,150 $128,778 $72,948 $139,590 $139,590 $0 Community Development
Approved Building Plan Sets 93% Within 5 Days 92% Within 5 Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days Discretionary Land Use Applications 99% Within 21 Days 99% Within 21 Days 99% Within 21 Work Days 99% Within 21 Work Days 99% Within 21 Work Days 99% Within 21 Work Days 99% Within 21 Work Days 99% Within 21 Work Days 99% Within 21 Work Days 99% Within 21 Work Days Public Notice of Upcoming Projects 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days 100% Within 10 Days Number of preliminary reviews 82 90 110 163
Number of planning applications received 169 138 194 237 Number of permits received 2322 2,321 2,534 2,497
Number of inspections requested 16026 13,625 14,596 13,787 Administrative Services
Accounts Payable Processing 7 Days 7 Days 7 Days 7 Days 7 Days 7 Days 7 Days 7 Days 7 Days 7 Days Business License Renewal Certificates 3 Days 3 Days 3 Days 3 Days 3 Days 3 Days 3 Days 3 Days 3 Days 3 Days Number of regular recruitments 21 21 28 24
Number of new hires 26 16 14 21
Number of temporary new hires 101 105 38 17
Number of vendor checks processes 6793 6,536 5,906 4,457 Number of payroll checks process 10387 10,301 10,802 7,816 Number of business license applications 1294 1,154 1,032 1,061 Number of journal entries posted 2830 4,521 4,558 3,915 Number of receipts processed 9766 13,913 18,992 10,367
Library
Volumes in Collection - - - 361817 364,557 369,924 367,979 367,101 368,461 350,088 Annual Gate Count - - - 869762 880,894 835,073 873,862 904,349 620,007 128,912 Annual Circulation Children's Items - - - 1474996 1,544,095 1,448,265 1,453,173 1,535,842 1,192,880 1,207,878 Annual Circulation Adult and Teen Items - - - 999766 1,032,326 950,453 980,609 1,049,166 831,114 750,602 Adult Classes and Events - - - 209 215 242 206 207 396 459 Adult Classes and Events Attendence - - - 11860 8,855 9,242 7,622 8,304 9,986 19,223 Teen Classes and Events - - - 52 78 66 79 52 57 31
Teen Classes and Events Attendence - - - 3393 3,135 2,571 2,495 1,283 8,495 7,151 Children's Classes and Events - - - 458 493 440 426 424 477 464 Children's Classes and Events Attendence - - - 25529 28,532 25,857 24,675 22,851 26,032 52,634 Volunteer Hours - - - 11786 10,000 9,645 10,302 10,191 6,592 465 Sources: City of Cupertino and Santa Clara County Library District Function/Program

CITY OF CUPERTINO
Operating Indicators by Function/Program
Last Ten Fiscal Years
(Unaudited)
112. 810
CC 05-17-2022
810 of 2420
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Works
Centerlane Miles of Streets 142 142 142 142 142 142 142 142 142 142 Streetlights 2,950 2,950 2,950 2,950 2,950 2,950 2,950 2,950 2,950 2,950 Traffic Signals 39 48 48 48 48 48 52 52 52 52
Culture & Recreation
Parks and Open Spaces 19 19 21 21 21 21 21 21 21 21
Park and Landscape Acreage 169 169 169 169 169 169 169 169 169 169 City Trails 1 1 3 3 3 3 3 3 3 3
Golf Courses 1 1 1 1 1 1 1 1 1 1
Community Center 1 1 1 1 1 1 1 1 1 1
Community Hall 1 1 1 1 1 1 1 1 1 1
Senior Center 1 1 1 1 1 1 1 1 1 1
Sports Center 1 1 1 1 1 1 1 1 1 1
Swimming Pools 1 1 1 1 1 1 1 1 1 1
Tennis Courts 17 17 17 28 28 28 28 28 28 28
Sports Fields 41 41 41 41 41 41 41 41 41 41
City Library 1 1 1 1 1 1 1 1 1 1
Source: City of Cupertino
Function/Program

CITY OF CUPERTINO
Capital Assets Statistics by Function/Program
Last Ten Fiscal Years
(Unaudited)
113. 811
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811 of 2420
History
“This place of San Joseph Cupertino has good water and much firewood, but nothing suitable for a settlement because it is among the hills very near to the range of cedars which I mentioned yesterday, and lacks level lands.”
When Spanish explorer San Juan Bautista De Anza traveled through California in 1776, he and his party documented these words about the land surrounding Stevens Creek, named back then as Arroyo San Joseph Cupertino. However, first impressions can often be misleading.

Underneath the spiny, overgrown bush was a completely different land waiting to be uncovered. During this time, the area was populated by Native Americans who hunted and gathered, prospering from the abundant resources the land had to offer.

It wasn’t until 1848 when the first American settler, Elijah Stephens, a blacksmith from South Carolina, moved to the area—at this time, named simply ‘West Side’ and primarily owned by the government. After crossing over the Sierra Nevada in wagons, he discovered the true value of the land underneath the bush, and proceeded to purchase over 300 acres of farmland to grow grapes and blackberries. Stephens pioneered the way for farmers, which established West Side as an agricultural hot spot. The land Stephens owned eventually became Blackberry Farm, and the road, creek, and reservoir were all named after him, although misspelled.

In early West Side, many of the newest advances in agriculture were being developed. Settlers were drawn to the land because of its rich earth, where they were able to grow products that competed on the world market. Once the bush had been cleared, they grew grapes, which covered the West Valley area with vineyards by the late 1800s. By the 1900s, a plant louse called Phylloxera spread throughout the vineyards, attacking the roots of the grape vines, killing the grapes and putting a halt to wine production. As a solution, nearly everything was replanted with fruit orchards. When the fruit trees blossomed, visitors would come to the orchards for “The Valley of Heart’s Delight” festivals, which celebrated the prosperous agriculture of the West Valley area.

Apart from the farmland, West Side was primarily known as a crossroads, an intersection between Saratoga-Sunnyvale Road and Stevens Creek. This served as a way station for travelers to pass through while going from town to town. As more people came to West Side to take advantage of the rich farm land, more family holdings gathered around the cross-roads.

Starting off as just a post office and home union store, West Side’s humble cross-roads brought many diverse communities, all attracted by the preferable climate and profitable market for crops.

As more people were drawn to the area around the cross-roads, the orchards were gradually replaced with modern houses for workers. The population steadily grew, and the face of West Side changed, progressing to a more modern town. The community wanted to rename the city, as to not confuse it with other cities, as well as establish a unique identity. John T. Doyle, a 812
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lawyer from San Francisco, and writer of historical anthologies on the area, chose the name “Cupertino” after the original name of the creek.

After the post-World War II population boom, the growing community petitioned for Cupertino to become an incorporated town. Members of the community were worried that the alternative to incorporation was to have parts of Cupertino annexed by surrounding cities, splitting up the community and erasing the local culture. To preserve the rural atmosphere, lower taxes for farmers, start a local government, and prepare for growth, Cupertino voted for incorporation. In 1955, Cupertino officially became the 13th city in Santa Clara County.

By the 1970s, Cupertino once again began to undergo dramatic changes. The growing community attracted several large technology corporations. Lockheed Martin, HP, Intel, and many other big names established themselves in the Silicon Valley. Apple Inc. was founded in Cupertino in 1976 and quickly grew into the tech giant it’s known for today.

In the late 20th century, Cupertino and the surrounding areas experienced another surge in population growth, this time due to the immigration of people from Asian countries.

Immigration laws at the time were in the favor of families looking to move to the Silicon Valley.

People immigrated here for a variety of reasons—whether they were aspiring for career prospects with major tech companies, or striving for a quality education for their children, everyone who immigrated here had a common goal: to find opportunities to work hard for a better life for themselves and their families.
2020 Community Economic Profile
Cupertino, with a population of 66,762 and City limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the Bay Area.

Economic health is an essential component to maintaining a balanced city, which provides highlevel opportunities and services that create and help sustain a sense of community and quality of life. Public and private interests must be mutual so that success as a partnership is a direct reflection of success as a community. The cornerstone of this partnership is a cooperative and responsive government that fosters residential and business prosperity and strengthens working relationships among all sectors of the community.

Because Cupertino is a mature, 93% built-out city, the City of Cupertino focuses on business retention and revitalization. Cupertino is world renowned as the home of high-tech giants, such as Apple, Inc. and Seagate Technologies, and as a community with stellar public schools. De Anza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for attracting local and international students. The City’s proactive economic development efforts have resulted in an innovative environment for startups and growing companies to thrive. The City strives to retain and attract local companies through active outreach and a responsive and customer-oriented entitlement process. 813
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Cupertino is excited to have a number of new mixed-use development projects offering more retail and dining options, as well as provide additional housing opportunities to meet the needs of the growing community.

Cupertino City CouncilMay 17, 2022

Cupertino City Council
May 17, 2022