Cities Index.
CC 02-07-2023 Searchable Packet.pdf

Cupertino City Council
February 7, 2023

Document
CC 02-07-2023 Searchable Packet.pdf
Meeting
February 7, 2023
Body
Cupertino City Council
Pages
51
Original file
28.8 MB
Text extracted from the city's file for reading and search. Open the original on cupertino.legistar.com. That file is the official record.

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U.S. Bank Confidential

PORTFOLIO REVIEW
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PARS/CITY OF CUPERTINO 115P - OPEB
Portfolio Overview
Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Portfolio Summary
Inv. Objective Balanced/Nontaxable-1
Total Portfolio Value $31,604,301
Net Realized Cap Gains YTD $352,076
Annual Income Projected $621,693
Current Yield 1.97%
Number of Securities 12
Portfolio Mgr. Rick Rosenthal
Portfolio Asset Allocation
Equity $19,979,136 63.22%
Fixed Income $10,057,379 31.82%
Real Assets $1,263,942 4.00%
Cash $303,844 0.96%
Invested Total $31,604,301 100.00%
63%
32%
4%
1%
Equity Fixed Income Real Assets Cash
Portfolio Model Allocation
Cash
Equivalents
Investment
Grade
High
Yield
Large
Cap U.S.

Equity
Mid Cap
U.S.

Equity
Small
Cap U.S.

Equity
Developed
Markets
Equity
Emerging
Markets
Equity
U.S.

Listed
Real
Estate
0%
10%
20%
30%
40%
50%
Portfolio

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PARS/CITY OF CUPERTINO 115P - OPEB
Equity Overview
Account: XXXXXX9600 Holdings Method: Direct and Indirect Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Equity Summary
Inv. Objective Balanced/Nontaxable-1
Total Equity Value $19,979,136
Current Yield 1.08%
Annual Income Projected $216,654
Number of Securities 6
Portfolio Mgr. Rick Rosenthal
Equity Asset Allocation
Large Cap U.S. $9,514,340 47.62%
Mid Cap U.S. $3,800,350 19.02%
Developed Markets $3,166,643 15.85%
Emerging Markets $1,919,764 9.61%
Small Cap U.S. $1,578,039 7.90%
48%
19%
16%
10%
8%
Large Cap U.S. Mid Cap U.S. Developed Markets Emerging Markets Small Cap U.S.

Bottom 5/ Top 5 Contributors (Trailing 12 Months)

BOSOXMISIXVWILXJVLIXFSSNXFSPSXBEXIXFSMDXHNACX
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%

0.0%

2.0%
Equity Global Distribution
North America
Europe
Asia
South America
Africa
Middle East

74.24%

12.92%

12.26%

0.36%

0.14%

0.08%
Equity Country Distribution
United States
Japan
United Kingdom
France
Germany

78.03%

2.93%

2.28%

2.14%

1.62%

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PARS/CITY OF CUPERTINO 115P - OPEB
Common Stock Detail
Account: XXXXXX9600 Holdings Method: Direct and Indirect Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Top 10 Common Stock Holdings
Equity (%) Port (%) Yield (%)
YTD
Return* (%)
52 Wk
Return* (%)
Apple Inc. 1.56 0.99 0.70 -26.4 -26.7
Microsoft Corporation 1.48 0.94 1.10 -28.0 -28.7
Amazon.com, Inc. 1.19 0.76 0.00 -49.6 -50.2
Alphabet Inc. Class A 1.15 0.73 0.00 -39.1 -39.7
UnitedHealth Group Incorporat… 1.12 0.71 1.30 6.9 6.5
Tesla Inc 1.08 0.69 0.00 -65.0 -65.5
Eli Lilly and Company 0.95 0.60 1.20 34.2 33.7
LVMH Moet Hennessy Louis V… 0.94 0.60 1.50 -4.7 -5.1
Visa Inc. Class A 0.93 0.59 0.80 -3.4 -3.9
Schlumberger NV 0.90 0.57 1.20 81.2 82.0
Common Stock Characteristics
Portfolio S&P 500
Market Cap - Wtd Avg $176.6B $417.5B
Market Cap - Median $10.1B $29.6B
Dividend Yield (%) 1.89 1.76
P/E NTM 15.7 16.8
P/E LTM 17.0 19.0
ROE (%) 20.8 27.7
1 Yr Beta vs. S&P Composite .85 .96
Est 3-5 Yr EPS Growth (%) 14.7 11.2
Hist 3 Yr EPS Growth (%) 16.8 18.6
Number of Securities 1928 503
Common Stock Sector Exposures
5% 10% 15% 20% 25% 30%
Communication Services
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Real Estate
Utilities
Portfolio S&P 500
Portfolio S&P 500

5.12 7.28

12.72 9.80

4.96 7.20

5.64 5.23

12.40 11.66

14.42 15.82

11.08 8.65

17.91 25.74

4.51 2.73

8.79 2.71

2.45 3.18
Common Stock Market Cap Distribution
> 50B 10B to 50B 2B to 10B 250MM to 2B < 250MM
0%
10%
20%
30%
40%
50%
60%
70%
80% Portfolio S&P 500
*Specific to the security - does not represent performance in the portfolio.

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PARS/CITY OF CUPERTINO 115P - OPEB
Fixed Income Overview
Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Fixed Income Summary
Inv. Objective Balanced/Nontaxable-1
Total Fixed Income Value $10,057,379
Current Yield 3.47%
Annual Income Projected $348,904
Number of Securities 4
Portfolio Mgr. Rick Rosenthal
Fixed Income Asset Allocation
Investment Grade $8,489,853 84.41%
High Yield $1,567,526 15.59%
84%
16%
Investment Grade High Yield
Fixed Income Sector Exposures
Mutual Funds & ETFs $10,057,379 100.00% 100%
Mutual Funds & ETFs
Fixed Income Market Value
12/31/201912/31/202012/31/202112/30/2022
Previous Close
0 2,000,000
4,000,000
6,000,000
8,000,000
10,000,000

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U.S. Bank Confidential
Custom Benchmark
Asset Class Benchmark Range Target Actual
Equities MSCI  AC World Free Index 50%‐70% 63% 63.1%
Fixed Income BBARC  Global Aggregate Index 20% ‐40% 29% 31.9% Real Estate S&P  Global REIT TR USD 0%‐15% 5% 4%
Commodities S&P  GSCI Commodity Index 0%‐10% 2% 0%
Cash FTSE 3‐Mo US T‐Bill Index 0%‐10% 1% 1%
CITY OF CUPERTINO

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Selected Period Performance
Period Ending: 12/31/2022PARS/CITY OF CUPERTINO OPEB AGG (****60596) Inception
to Date
Market Value 3 Months 1 Year 3 Years 5 Years 104 Months 07/01/2010 Total Portfolio Gross of Fees 31,638,793 6.26 -17.96 .87 2.84 4.38 5.63 Total Portfolio Net of Fees 31,638,793 6.21 -18.11 .69 2.65 4.16 City of Cupertino 8.04 -16.62 1.93 3.67 4.31 6.42
Total Equity 19,979,136 9.06 -20.40 4.51 5.43 7.42 10.28 MSCI ACWI (Net) 9.76 -18.36 4.00 5.23 6.45 8.84
U.S. Equity 14,892,729 7.15 -20.41 4.88 6.48 8.79
S&P 500 Index (Total Return) 7.56 -18.11 7.66 9.42 10.66 13.31 S&P MidCap 400 Index 10.78 -13.06 7.23 6.71 8.67 12.04
S&P SmallCap 600 Index 9.19 -16.10 5.80 5.88 8.39 12.13 Developed Markets Equity 3,166,643 18.28 -17.00 7.50 5.99 5.67 MSCI EAFE Index (Net) 17.34 -14.45 .87 1.54 2.69 5.79
Emerging Markets Equity 1,919,764 8.58 -25.82 -4.20 -3.47 -.13 MSCI Emerging Markets Index (Net) 9.70 -20.09 -2.69 -1.40 1.98 2.78 Total Fixed Income 10,090,083 1.06 -11.52 -4.74 -1.36 -.05 1.24 BBARC Global Aggregate Index 4.55 -16.25 -4.48 -1.66 -.61 .89 BBARC US Aggregate Bond Index 1.87 -13.01 -2.71 .02 1.15 1.88 Total Real Assets 1,263,942 5.29 -24.46 -.34 2.29
Real Estate 1,263,942 5.29 -24.46 -.34 2.85 5.21
S&P Global REIT Index (Gross) 7.17 -23.60 -2.38 1.98 4.15 7.82 S&P GSCI Index 3.44 25.99 10.49 6.46 -4.06 -1.12
Total Cash Equivalents 305,632 .86 1.49 .62 1.09 .75 .53 ICE BofAML US 3-Month Treasury Bill Index .84 1.46 .72 1.26 .87 .63 Pending Cash 0 .00 .00 .00 .00 .00 .00

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PARS/CITY OF CUPERTINO 115P - OPEB
Portfolio Holdings
Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Symbol
% of
Port. Price
Shares/
Units
Portfolio
Value
Cost
Basis
Unrealized
Gain/Loss
Current
Yield
Projected
Annual
Income
Total 100.0 31,604,301 30,193,427 1,410,874 1.97 621,693 Cash .96 303,844 303,844 .00 4.06 12,350
Cash Equivalents .96 303,844 303,844 .00 4.06 12,350
FIRST AM GOVT OB FD CL Z 31846V567 .96 1.00 303,844 303,844 303,844 .00 4.06 12,350 Fixed Income 31.82 10,057,379 8,974,995 1,082,384 3.47 348,904 Investment Grade 26.86 8,489,853 7,148,441 1,341,412 2.87 243,595 Mutual Funds & ETFs 26.86 8,489,853 7,148,441 1,341,412 2.87 243,595 DoubleLine Total Return Bond Fund Class I DBLTX 8.91 8.77 321,221 2,817,105 2,496,939 320,166 3.87 108,894 Fidelity U.S. Bond Index Fund FXNAX 8.95 10.18 277,707 2,827,054 1,738,442 1,088,612 2.40 67,760 TIAA-CREF Short-Term Bond Fd Institutio… TISIX 9.00 9.82 289,786 2,845,694 2,913,060 -67,366 2.35 66,940 High Yield 4.96 1,567,526 1,826,554 -259,027 6.72 105,309 Mutual Funds & ETFs 4.96 1,567,526 1,826,554 -259,027 6.72 105,309 Artisan High Income Fund - Institutional Sh… APHFX 4.96 8.41 186,388 1,567,526 1,826,554 -259,027 6.72 105,309 Equity 63.22 19,979,136 19,255,147 723,989 1.08 216,654 Large Cap U.S. Equity 30.10 9,514,340 10,979,658 -1,465,318 0.70 66,262 Mutual Funds & ETFs 30.10 9,514,340 10,979,658 -1,465,318 0.70 66,262 Harbor Capital Appreciation Fund - Retire … HNACX 15.05 62.89 75,649 4,757,576 5,421,828 -664,252 0.00 0 John Hancock Fds III Disciplined Value Fu… JVLIX 15.05 20.89 227,705 4,756,764 5,557,830 -801,066 1.39 66,262 Mid Cap U.S. Equity 12.02 3,800,350 1,466,435 2,333,915 1.59 60,553 Mutual Funds & ETFs 12.02 3,800,350 1,466,435 2,333,915 1.59 60,553 Fidelity Mid Cap Index Fund FSMDX 12.02 25.92 146,618 3,800,350 1,466,435 2,333,915 1.59 60,553 Small Cap U.S. Equity 4.99 1,578,039 1,555,728 22,312 0.35 5,579 Mutual Funds & ETFs 4.99 1,578,039 1,555,728 22,312 0.35 5,579 Boston Trust Walden Small Cap Fund BOSOX 4.99 15.56 101,416 1,578,039 1,555,728 22,312 0.35 5,579 Developed Markets Equity 10.02 3,166,643 3,607,802 -441,160 2.66 84,259 Mutual Funds & ETFs 10.02 3,166,643 3,607,802 -441,160 2.66 84,259 Fidelity International Index Fund FSPSX 10.02 41.19 76,879 3,166,643 3,607,802 -441,160 2.66 84,259 Emerging Markets Equity 6.07 1,919,764 1,645,524 274,240 0.00 0 Mutual Funds & ETFs 6.07 1,919,764 1,645,524 274,240 0.00 0 Baron Emerging Markets Fd Inst Shs BEXIX 6.07 13.04 147,221 1,919,764 1,645,524 274,240 0.00 0

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PARS/CITY OF CUPERTINO 115P - OPEB
Portfolio Holdings
Account: XXXXXX9600 Holdings Method: Direct Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Symbol
% of
Port. Price
Shares/
Units
Portfolio
Value
Cost
Basis
Unrealized
Gain/Loss
Current
Yield
Projected
Annual
Income
Real Assets 4.00 1,263,942 1,659,442 -395,500 3.46 43,784 U.S. Listed Real Estate 4.00 1,263,942 1,659,442 -395,500 3.46 43,784 iShares Core U.S. REIT ETF USRT 4.00 49.45 25,560 1,263,942 1,659,442 -395,500 3.46 43,784

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PARS/CITY OF CUPERTINO 115P- PENSION
Portfolio Overview
Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Portfolio Summary
Inv. Objective Balanced/Nontaxable-1
Total Portfolio Value $17,381,869
Net Realized Cap Gains YTD $118,233
Annual Income Projected $341,924
Current Yield 1.97%
Number of Securities 12
Portfolio Mgr. Rick Rosenthal
Portfolio Asset Allocation
Equity $10,988,150 63.22%
Fixed Income $5,531,401 31.82%
Real Assets $695,119 4.00%
Cash $167,200 0.96%
Invested Total $17,381,869 100.00%
63%
32%
4%
1%
Equity Fixed Income Real Assets Cash
Portfolio Model Allocation
Cash
Equivalents
Investment
Grade
High
Yield
Large
Cap U.S.

Equity
Mid Cap
U.S.

Equity
Small
Cap U.S.

Equity
Developed
Markets
Equity
Emerging
Markets
Equity
U.S.

Listed
Real
Estate
0%
10%
20%
30%
40%
50%
Portfolio

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PARS/CITY OF CUPERTINO 115P- PENSION
Equity Overview
Account: XXXXXX9601 Holdings Method: Direct and Indirect Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Equity Summary
Inv. Objective Balanced/Nontaxable-1
Total Equity Value $10,988,150
Current Yield 1.08%
Annual Income Projected $119,156
Number of Securities 6
Portfolio Mgr. Rick Rosenthal
Equity Asset Allocation
Large Cap U.S. $5,232,738 47.62%
Mid Cap U.S. $2,090,133 19.02%
Developed Markets $1,741,604 15.85%
Emerging Markets $1,055,786 9.61%
Small Cap U.S. $867,890 7.90%
48%
19%
16%
10%
8%
Large Cap U.S. Mid Cap U.S. Developed Markets Emerging Markets Small Cap U.S.

Bottom 5/ Top 5 Contributors (Trailing 12 Months)

BOSOXMISIXVWILXJVLIXFSSNXFSPSXBEXIXFSMDXHNACX
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%

0.0%

2.0%
Equity Global Distribution
North America
Europe
Asia
South America
Africa
Middle East

74.24%

12.92%

12.26%

0.36%

0.14%

0.08%
Equity Country Distribution
United States
Japan
United Kingdom
France
Germany

78.03%

2.93%

2.28%

2.14%

1.62%

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PARS/CITY OF CUPERTINO 115P- PENSION
Common Stock Detail
Account: XXXXXX9601 Holdings Method: Direct and Indirect Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Top 10 Common Stock Holdings
Equity (%) Port (%) Yield (%)
YTD
Return* (%)
52 Wk
Return* (%)
Apple Inc. 1.56 0.99 0.70 -26.4 -26.7
Microsoft Corporation 1.48 0.94 1.10 -28.0 -28.7
Amazon.com, Inc. 1.19 0.76 0.00 -49.6 -50.2
Alphabet Inc. Class A 1.15 0.73 0.00 -39.1 -39.7
UnitedHealth Group Incorporat… 1.12 0.71 1.30 6.9 6.5
Tesla Inc 1.08 0.69 0.00 -65.0 -65.5
Eli Lilly and Company 0.95 0.60 1.20 34.2 33.7
LVMH Moet Hennessy Louis V… 0.94 0.60 1.50 -4.7 -5.1
Visa Inc. Class A 0.93 0.59 0.80 -3.4 -3.9
Schlumberger NV 0.90 0.57 1.20 81.2 82.0
Common Stock Characteristics
Portfolio S&P 500
Market Cap - Wtd Avg $176.6B $417.5B
Market Cap - Median $10.1B $29.6B
Dividend Yield (%) 1.89 1.76
P/E NTM 15.7 16.8
P/E LTM 17.0 19.0
ROE (%) 20.8 27.7
1 Yr Beta vs. S&P Composite .85 .96
Est 3-5 Yr EPS Growth (%) 14.7 11.2
Hist 3 Yr EPS Growth (%) 16.8 18.6
Number of Securities 1928 503
Common Stock Sector Exposures
5% 10% 15% 20% 25% 30%
Communication Services
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Real Estate
Utilities
Portfolio S&P 500
Portfolio S&P 500

5.12 7.28

12.72 9.80

4.96 7.20

5.64 5.23

12.40 11.66

14.42 15.82

11.08 8.65

17.91 25.74

4.51 2.73

8.79 2.71

2.45 3.18
Common Stock Market Cap Distribution
> 50B 10B to 50B 2B to 10B 250MM to 2B < 250MM
0%
10%
20%
30%
40%
50%
60%
70%
80% Portfolio S&P 500
*Specific to the security - does not represent performance in the portfolio.

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PARS/CITY OF CUPERTINO 115P- PENSION
Fixed Income Overview
Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Fixed Income Summary
Inv. Objective Balanced/Nontaxable-1
Total Fixed Income Value $5,531,401
Current Yield 3.47%
Annual Income Projected $191,892
Number of Securities 4
Portfolio Mgr. Rick Rosenthal
Fixed Income Asset Allocation
Investment Grade $4,669,286 84.41%
High Yield $862,115 15.59%
84%
16%
Investment Grade High Yield
Fixed Income Sector Exposures
Mutual Funds & ETFs $5,531,401 100.00% 100%
Mutual Funds & ETFs
Fixed Income Market Value
12/31/2019 12/31/2020 12/31/2021 12/30/2022
Previous Close
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000

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U.S. Bank Confidential
Custom Benchmark
Asset Class Benchmark Range Target Actual
Equities MSCI  AC World Free Index 50%‐70% 63% 63.1%
Fixed Income BBARC  Global Aggregate Index 20% ‐40% 29% 31.9% Real Estate S&P  Global REIT TR USD 0%‐15% 5% 4%
Commodities S&P  GSCI Commodity Index 0%‐10% 2% 0%
Cash FTSE 3‐Mo US T‐Bill Index 0%‐10% 1% 1%
CITY OF CUPERTINO

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Selected Period Performance
Period Ending: 12/31/2022PARS/CITY OF CUPERTINO 115P- PENSION (****059601) Inception
to Date
Market Value 3 Months 1 Year 3 Years 05/01/2019
Total Portfolio Gross of Fees 17,400,839 6.26 -17.88 2.05 3.70 Total Portfolio Net of Fees 17,400,839 6.21 -18.03 1.87 3.52 City of Cupertino 8.04 -16.62 1.93 3.74
Total Equity 10,988,150 9.06 -20.39 4.54 6.03
MSCI ACWI (Net) 9.76 -18.36 4.00 5.77
U.S. Equity 8,190,760 7.15 -20.40 4.88 6.32
S&P 500 Index (Total Return) 7.56 -18.11 7.66 9.34
S&P MidCap 400 Index 10.78 -13.06 7.23 7.56
S&P SmallCap 600 Index 9.19 -16.10 5.80 6.37
Developed Markets Equity 1,741,604 18.28 -17.00 7.50 8.74 MSCI EAFE Index (Net) 17.34 -14.45 .87 2.82
Emerging Markets Equity 1,055,786 8.58 -25.82 -4.19 -2.00 MSCI Emerging Markets Index (Net) 9.70 -20.09 -2.69 -.77 Total Fixed Income 5,549,387 1.06 -11.52 -4.70 -2.42
BBARC Global Aggregate Index 4.55 -16.25 -4.48 -2.43
BBARC US Aggregate Bond Index 1.87 -13.01 -2.71 -.77
Total Real Assets 695,119 5.29 -24.37 -.28 1.89
Real Estate 695,119 5.29 -24.37 -.28 1.89
S&P Global REIT Index (Gross) 7.17 -23.60 -2.38 .43
S&P GSCI Index 3.44 25.99 10.49 8.35
Total Cash Equivalents 168,184 .86 1.34 .56 .81
ICE BofAML US 3-Month Treasury Bill Index .84 1.46 .72 .99 Pending Cash 0 .00 .00 .00 .00

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PARS/CITY OF CUPERTINO 115P- PENSION
Portfolio Holdings
Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Symbol
% of
Port. Price
Shares/
Units
Portfolio
Value
Cost
Basis
Unrealized
Gain/Loss
Current
Yield
Projected
Annual
Income
Total 100.0 17,381,869 18,137,331 -755,462 1.97 341,924 Cash .96 167,200 167,200 .00 4.06 6,796
Cash Equivalents .96 167,200 167,200 .00 4.06 6,796
FIRST AM GOVT OB FD CL Z 31846V567 .96 1.00 167,200 167,200 167,200 .00 4.06 6,796 Fixed Income 31.82 5,531,401 5,778,309 -246,909 3.47 191,892 Investment Grade 26.86 4,669,286 4,786,200 -116,914 2.87 133,973 Mutual Funds & ETFs 26.86 4,669,286 4,786,200 -116,914 2.87 133,973 DoubleLine Total Return Bond Fund Class I DBLTX 8.91 8.77 176,666 1,549,363 1,479,321 70,043 3.87 59,890 Fidelity U.S. Bond Index Fund FXNAX 8.95 10.18 152,734 1,554,835 1,706,792 -151,956 2.40 37,267 TIAA-CREF Short-Term Bond Fd Institutio… TISIX 9.00 9.82 159,378 1,565,087 1,600,088 -35,000 2.35 36,816 High Yield 4.96 862,115 992,109 -129,994 6.72 57,919
Mutual Funds & ETFs 4.96 862,115 992,109 -129,994 6.72 57,919 Artisan High Income Fund - Institutional Sh… APHFX 4.96 8.41 102,511 862,115 992,109 -129,994 6.72 57,919 Equity 63.22 10,988,150 11,301,247 -313,097 1.08 119,156 Large Cap U.S. Equity 30.10 5,232,738 6,119,761 -887,023 0.70 36,443 Mutual Funds & ETFs 30.10 5,232,738 6,119,761 -887,023 0.70 36,443 Harbor Capital Appreciation Fund - Retire … HNACX 15.05 62.89 41,606 2,616,592 3,114,299 -497,707 0.00 0 John Hancock Fds III Disciplined Value Fu… JVLIX 15.05 20.89 125,234 2,616,145 3,005,462 -389,316 1.39 36,443 Mid Cap U.S. Equity 12.02 2,090,133 1,305,598 784,535 1.59 33,303 Mutual Funds & ETFs 12.02 2,090,133 1,305,598 784,535 1.59 33,303 Fidelity Mid Cap Index Fund FSMDX 12.02 25.92 80,638 2,090,133 1,305,598 784,535 1.59 33,303 Small Cap U.S. Equity 4.99 867,890 855,569 12,321 0.35 3,068 Mutual Funds & ETFs 4.99 867,890 855,569 12,321 0.35 3,068 Boston Trust Walden Small Cap Fund BOSOX 4.99 15.56 55,777 867,890 855,569 12,321 0.35 3,068 Developed Markets Equity 10.02 1,741,604 1,934,765 -193,161 2.66 46,341 Mutual Funds & ETFs 10.02 1,741,604 1,934,765 -193,161 2.66 46,341 Fidelity International Index Fund FSPSX 10.02 41.19 42,282 1,741,604 1,934,765 -193,161 2.66 46,341 Emerging Markets Equity 6.07 1,055,786 1,085,556 -29,769 0.00 0 Mutual Funds & ETFs 6.07 1,055,786 1,085,556 -29,769 0.00 0 Baron Emerging Markets Fd Inst Shs BEXIX 6.07 13.04 80,965 1,055,786 1,085,556 -29,769 0.00 0

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PARS/CITY OF CUPERTINO 115P- PENSION
Portfolio Holdings
Account: XXXXXX9601 Holdings Method: Direct Report Date: 12/30/2022 © 2019 FactSet Research Systems Inc. All rights reserved. Past Performance is no guarantee of future results.

Not A Deposit | Not FDIC Insured | May Lose Value | Not Bank Guaranteed | Not Insured By Any Federal Government Agency Material is based on data from sources deemed to be reliable, accuracy/completeness is not guaranteed.

Holdings Date: 12/30/2022
Symbol
% of
Port. Price
Shares/
Units
Portfolio
Value
Cost
Basis
Unrealized
Gain/Loss
Current
Yield
Projected
Annual
Income
Real Assets 4.00 695,119 890,575 -195,456 3.46 24,080
U.S. Listed Real Estate 4.00 695,119 890,575 -195,456 3.46 24,080 iShares Core U.S. REIT ETF USRT 4.00 49.45 14,057 695,119 890,575 -195,456 3.46 24,080

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U.S. Bank Confidential

ECONOMIC OUTLOOK
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[ 1 ] Important disclosures provided on page 4.

Market analysis
At a glance
Easing inflation data supported positive returns for bonds and stocks last week. The pace of Federal Reserve interest rate hikes remains a key factor for both bond and stock investors.

Term of week
Valuation – The analytical process of determining the
current (or projected) worth of an asset or a company.

There are many techniques used for doing a valuation. An analyst placing a value on a company looks at the
business's management, the composition of its capital
structure, the prospect of future earnings and the market value of its assets, among other metrics.

January 17, 2023
This informational
material is provided by
U.S. Bank Asset
Management Group who
provides analysis and
research to U.S. Bank and
its affiliate U.S. Bancorp
Investments. Contact
your wealth professional
for more details.

Number of the week
10 The number of S&P 500 sectors (out of
11) with positive returns so far this year.
“Broad market valuations are fair, neither at high nor low extremes. Consensus earnings projections for 2023 remain approximately $226 per share; we expect this estimate to trend lower as more companies report fourth quarter results and offer forward guidance. At current levels, the S&P 500 trades at 17.7 times the current 2023 estimate, slightly above the historical average of 16.2, according to Bloomberg.” - Terry Sandven, Portfolio Manager, Chief Equity Strategist, U.S. Bank usbank.com
Investment products and services are:

NOT A DEPOSIT • NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

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[ 2 ] Important disclosures provided on page 4.

Global economy
Quick take: Inflation pressures continue to ease in the United States, but consumer and small business sentiment remain low. Reopening in China is sparking some inflation, while European data appears to be more stable than expected.

Our view: Our U.S. Health Check highlights positive but below-trend economic activity and decelerating momentum as the Federal Reserve (Fed) tightens monetary policy to combat elevated inflation. Our foreign scores are below median and slowing.  The Consumer Price Index fell 0.1% in December, slowing to a year-over-year rise of 6.5%. Energy prices were the primary cause of the decline; oil and gas prices continue to ease on slower demand expectations. Core prices, which exclude food and energy, rose 0.3% for the month, though the year-over-year gain of 5.7% continues its slowing pattern. Used car prices fell, while housing and rent increased 0.8%. Overall, inflation pressures are on a slowing path, as the Fed hoped.
 Consumer and business sentiment remains low. The Michigan Consumer Sentiment Index rose to 64.6, up from the record low reading in early summer. However, the level is consistent with past recessions, reflecting ongoing concerns about high energy costs. Meanwhile, the National Federation of Independent Business Small Business Optimism Index slipped to its second- lowest level since 2013. Higher labor and materials costs and lower profits are key challenges.
 Many economists expect Europe to experience growth
challenges and perhaps a recession in 2023. However, as we close the fourth quarter and enter the new year, the data is marginally better. The Eurozone sentix Investor Confidence Index improved to -17.5 in January from -21.0, and industrial production rose 1.0% in November. In the United Kingdom, retail sales rose

6.9% year-over-year in December, improving from 4.2% the previous month, and the gross domestic product rose 0.1% in November after a 0.5% gain in October, perhaps reversing the third quarter contraction.
 China’s Consumer Price Index accelerated in December, rising

1.8% for the year, up from 1.6% in November. The adjustment in coronavirus policy may drive an increase in consumer demand.

Equity markets
Quick take: U.S. equities are trending higher in the new year following positive employment and inflation reports. Consensus earnings for 2023 face downward revisions, a potential headwind to equity prices.

Our view: At present, inflation remains elevated, interest rates are rising and consensus earnings projections for 2023 are subject to downward revision as fourth quarter earnings releases ramp up.
 Early-year performance is superb and broad-based, aided by slowing inflation. The popular U.S. indices are up between 3.5% and

7.1% for the year as of Friday’s close. Ten of 11 S&P 500 sectors are in positive territory, with Real Estate, Materials, Communication Services and Consumer Discretionary up 7% or more. Healthcare is fractionally off, down 0.4%.
 Fourth quarter results are trending modestly above expectations.

While early, with only 6% of S&P 500 companies having reported, sales are up 7.2% over year-ago levels, above expectations for growth of 3.7%. Earnings are -2.4%, modestly better than expectations of -3.3%. From the money center banks that have reported so far, consumers appear to be spending on both discretionary and non-discretionary items with minimal indications of financial stress. Travel demand remains robust, despite a weaker economic environment.
 Broad market valuations are fair, neither at high nor low extremes.

Consensus earnings projections for 2023 remain approximately $226 per share; we expect this estimate to trend lower as more companies report fourth quarter results and offer forward guidance. At current levels, the S&P 500 trades at 17.7 times the current 2023 estimate, slightly above the historical average of 16.2, according to Bloomberg.  Defensive sectors remain of near-term appeal due to recession fears. Healthcare, Utilities, Real Estate, Consumer Staples, Financials and select Energy companies have defensive characteristics, offering relatively stable growth profiles throughout varying economic environments, with many associated companies offering compelling dividend yields.
 Secular growth sectors remain well-positioned for longer-term growth. While the near-term outlook remains unclear, the longer- term prospects for Information Technology, Consumer Discretionary, Communication Services and Industrials are compelling, particularly following the 2022 price declines. The interaction of artificial intelligence, machine learning, cloud computing, sensing, multichannel retail options and massive data sets provide a platform for new tools and outcomes that extend beyond the current economic cycle.

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Bond markets
Quick take: Improving investor risk appetite and falling Treasury yields fueled positive returns across the bond market, with longer- term and riskier bonds outperforming. Inflation decelerated in December, reducing the Fed’s urgency in tightening monetary policy.

Our view: Slowing inflation reduces the risk of large interest rate increases ahead. We favor higher-than-normal exposure to high- quality bonds for their attractive return opportunities and defensive characteristics. Large yield increases over the past year improve their income return, and high-quality bonds are typically less sensitive to fluctuations in the business cycle.
 Fed officials voiced support for slowing policy tightening but reminded investors they plan to hold interest rates at high levels. The Fed’s 4.25% increase in rates over the past year has started cooling inflation, yet we anticipate additional rate hikes until the Fed becomes confident it has brought inflation under control. Recent Fed communication aligns with market
expectations of 0.25% rate hikes going forward, as opposed to the larger 0.50% and 0.75% increases seen last year. The Fed’s last interest rate projections from its December meeting indicate officials plan on holding the funding rate steady at 5.00% to 5.25% through the end of the year. However, investors expect the rate to peak just below 5% before the Fed begins cutting rates by 0.5% before the year’s end.
 The extra yield on riskier bonds fell as investor confidence recovered. The incremental yield over Treasuries on corporate and municipal bonds fell slightly below long-term averages. This extra yield compensates for credit risk and falls when investors are comfortable investing in riskier bonds. We favor higher-than- normal exposure to high-quality bonds considering recent Treasury yield increases have improved return opportunities, while limiting incentive to increase credit risk.

Real assets
Quick take: Cash-producing real assets traded mixed last week, with Real Estate and commodities outperforming and infrastructure lagging.

Our view: We continue to see value in real assets’ defensive sectors.

We favor tangible assets with stable cash flows as we move past peak earnings growth in a year during which economic growth and corporate earnings could stagnate. Commodities remain vulnerable if expectations for falling inflation and decelerating economic growth come to fruition.
 Real Estate beat the S&P 500 by 1.5% last week as interest rates declined marginally. Cell towers and offices were the top- performing sectors while retail and residential properties lagged.

Publicly traded real estate investment trust valuations incorporate likely future pressure on private property prices, providing some cushion against a challenging economic environment. However, still-higher interest rates could hamper investor returns.  Infrastructure trailed the S&P 500 by 1% last week. Airports beat the broader market by 2.75%. Utilities and rail roads were the main detractors.
 Crude oil prices rose 8% last week on hopes that China re- opening spurs demand, despite a large increase in domestic supplies. We still see the crude market as undersupplied, which should be supportive for prices over a longer time horizon, but acknowledge downside exists if the economy continues to slow.

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[ 4 ] ©2023 U.S. Bank.

This info
rmation represents the opinion of U.S. Bank Wealth Management. The views are subject to change at any time based on market or other conditions and are current as of the date indicated on the materials. This is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide specific advice or to be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation. The factual information provided has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. U.S. Bank is not affiliated or associated with any organizations mentioned.

Based on our strategic approach to creating diversified portfolios, guidelines are in place concerning the construction of portfolios and how investments should be allocated to specific asset classes based on client goals, objectives and tolerance for risk. Not all recommended asset classes will be suitable for every portfolio. Diversification and asset allocation do not guarantee returns or protect against losses.

Past performance is no guarantee of future results. All performance data, while obtained from sources deemed to be reliable, are not guaranteed for accuracy. Indexes shown are unmanaged and are not available for direct investment. The S&P 500 Index consists of 500 widely traded stocks that are considered to represent the performance of the U.S. stock market in general. The Michigan Consumer Sentiment Index is a monthly survey of consumer confidence levels in the United States conducted by the University of Michigan. The survey is based on telephone interviews that gather information on consumer expectations for the economy. The Consumer Price Index is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. It is one of the most frequently used statistics for identifying periods of inflation or deflation. The National Federation of Independent Business Small Business Optimism Index is a composite of 10 seasonally adjusted components. It provides an indication of the health of small businesses in the U.S., which account of roughly 50% of the nation's private workforce. The sentix Investor Confidence Index rates the relative six-month economic outlook for the eurozone. The data is compiled from a survey of about 2,800 investors and analysts. A reading above zero indicates optimism; below indicates pessimism.

Equity securities are subject to stock market fluctuations that occur in response to economic and business developments. International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility. Investing in fixed income securities are subject to various risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Investment in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Investments in high yield bonds offer the potential for high current income and attractive total return but involve certain risks. Changes in economic conditions or other circumstances may adversely affect a bond issuer's ability to make principal and interest payments. The municipal bond market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of the issues of municipal securities. Interest rate increases can cause the price of a bond to decrease. Income on municipal bonds is free from f ederal taxes but may be subject to the federal alternative minimum tax (AMT), state and local taxes. There are special risks associated with investments in real assets such as commodities and real estate securities. For commodities, risks may include market price fluctuations, regulatory changes, interest rate changes, credit risk, economic changes and the impact of adverse political or financial factors. Investments in real estate securities can be subject to fluctuations in the value of the underlying properties, the effect of economic conditions on real estate values, changes in interest rates and risks related to renting properties (such as rental defaults).

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Important disclosures, definitions
of terms and index descriptions
If you have questions regarding this information or wish to receive definitions of any additional terms or indexes used in this report, please contact your Portfolio Manager .
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Important disclosures (page 1 of 4)
The information provided here is not intended to replace your account statement. Your account statement is the official record of your account.

Equal Housing Lender. Credit products are offered by U.S. Bank National Association and subject to normal credit approval.

Deposit products offered by U.S. Bank National Association. Member FDIC.

For use in one-on-one meetings/presentations.

This information represents the opinion of U.S. Bank. The views are subject to change at any time based on market or other conditions and are current as of the date indicated on the materials. This is not intended to be a forecast of future events or guarantee of future results. The factual information provided has been obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness.

U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should co nsult your tax and/or legal advisor for advice and information concerning your particular situation.

Past performance is no guarantee of future results. All performance data, while obtained from sources deemed to be reliable, are not guaranteed for accuracy. Indexes shown are unmanaged and are not available for direct investment, nor are they subject to fees and expenses.

Performance reports included may show performance results gross of fees and expenses. If fees and expenses were included, the performance would be lower. If you have any questions, please speak with your relationship manager for additional information.

Based on our strategic approach to creating diversified portfolios, guidelines are in place concerning the construction of portfolios and how investments should be allocated to specific asset classes based on client goals, objectives and tolerance for risk. Not all recommended asset classes will be suitable for every portfolio. Diversification and asset allocation do not guarantee returns or protect against losses.

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Important disclosures (page 2 of 4)
Equity securities are subject to stock market fluctuations that occur in response to economic and business developments. Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies and may be expected to do so in the future. Stocks of mid-capitalization companies can be expected to be slightly less volatile than those of small-capitalization companies, but still involve substantial risk and may be subject t om o r e abrupt or erratic movements than large-capitalization companies. The value of large-capitalization stocks will rise and fall in response to the activities of the company that issued them, general market conditions and/or economic conditions. Growth investments focus on stocks of companies whose earnings/profitability are accelerating in the short term or have grown consistently over the long term. Such investments may provide minimal dividends, which could otherwise cushion stock prices in a market decline. Stock value may rise and fall significantly based, in part, on investors' perceptions of the company, rather than on fundamental analysis of the stocks. Investors should carefully consider the additional risks involved in growth investments. Value investments focus on stocks of income-producing companies whose price is low relative to one or more valuation factors, such as earnings or book value. Such investments are subject to risks th at their intrinsic values may never be realized by the market, or such stocks may turn out not to have been undervalued. Investors sh ould carefully consider the additional risks involved in value investments.

International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility.

Investments in real estate securities can be subject to fluctuations in the value of the underlying properties, the effect of economic conditions on real estate values, changes in interest rates and risks related to renting properties (such as rental defaults). There are special risks associated with an investment in commodities, including market price fluctuations, regulatory changes, interest rate changes, credit risk, economic changes and the impact of adverse political or financial factors.

Investments in fixed income securities are subject to various risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Investment in fixe di n c o m e securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Investments in high yield bonds offer the potential for high current income and attractive total return, but involve certain risks. Changes in economic conditions or other circumstances may adversely affect a bond issuer's ability to make principal and interest payments.

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Important disclosures (page 3 of 4)
The municipal bond market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of the issues of municipal securities. Interest rate increases can cause the price of a bond to decrease. In come on municipal bonds is free from federal taxes, but may be subject to the federal alternative minimum tax (AMT), state and local ta xes.

Treasury Inflation-Protected Securities (TIPS) offer a lower return compared to other similar investments and the principal value may increase or decrease with the rate of inflation. Gains in principal are taxable in that year, even though not paid out untilm a t u r i t y .

Non-financial specialty assets, such as real estate, farm, ranch and timber properties, oil, gas and mineral interests or closely-held business interests are complex and involve unique risks specific to each asset type, including the total loss of value. Special risk considerations may include natural events or disasters, complex tax considerations and lack of liquidity. Specialty assets may not be suitable for all investors.

Alternative investments very often use speculative investment and trading strategies. There is no guarantee that the investment program will be successful. Alternative investments are designed only for investors who are able to tolerate the full loss of an investment. These products are not suitable for every investor ev en if the investor does meet the financial requirements. It is important to consult with your investment professional to determine how these investments might fit your asset allocation, risk profile and tax situation. Hedge funds are speculative and involve a high degree of risk. An investment in a hedge fund involves a substantially more complicated set of risk factors than traditional investments in stocks or bonds, including the risks of using derivatives, leverage and short sales, which can magnify potential losses or gains. Restrictions exist on the ability to redeem or transfer interests in a fund. Exchange-traded funds (ETFs) are baskets of securities that are traded on an exchange like individual stocks at negotiated prices and are not individually redeemable. ETFs are designed to generally track a market index and shares may trade at a premium or a discount to the net asset value of the underlying securities. Private equity investments provide investors and funds the potential to invest directly into private companies or participate in buyouts of public companies that result in a de listing of the public equity. Investors considering an investment in privat e equity must be fully aware that these investments are illiqui db y nature, typically represent a long-term binding commitment and are not readily marketable. The valuation procedures for these holdings are often subjective in nature. Private debt investments may be either direct or indirect and are subject to significant risks, including the possibility of default, limited liquidity and the infrequent availability of independent credit ratings for private companies.

Structured products are subject to market risk and/or principal loss if sold prior to maturity or if the issuer defaults on the security.

Investors should request and review copies of Structured Products Pricing Supplements and Prospectuses prior to approving or directing an investment in these securities.

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Important disclosures (page 4 of 4)
Mutual fund investing involves risk and principal loss is possible. Investing in certain funds involves special risks, such as those related to investments in small- and mid-capitalization stocks, foreign, debt and high-yield securities and funds that focus the ir investments in a particular industry. Please refer to the fund pr ospectus for additional details pertaining to these risks. An investment in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although these funds seek to preserve the value of an inve stment at $1.00 per share, it is possible to lose money by in vesting in these funds.

Holdings of First American Funds: U.S. Bancorp Asset Management, Inc. is a registered investment advisor and subsidiary of U.S. Bank National Association. U.S. Bank National Association is a separate entity and wholly owned subsidiary of U.S. Bancorp. U.S.

Bank is not responsible for and does not guarantee the products, performance or services of U.S. Bancorp Asset Management. U.S.

Bancorp Asset Management, Inc. serves as an investment advisor to First American Funds. Holdings of Nuveen mutual funds:

Firstar Capital Corporation (Firstar Capital), an affiliate of U.S. Bancorp, holds a less-than-10 percent ownership interest in Windy City Investments Holdings, LLC which was formerly the parent of Windy City Investment Inc. and the indirect parent of Nuveen Fund Advisors, LLC which is the investment advisor to the Nuveen Mutual Funds. On October 1, 2014, Windy City Investments, Inc. was sold to Teachers Insurance and Annuity Association of America. As a result of the sale, U.S. Bancorp no longer has an indirect ownership interest in Nuveen Fund Advisors, LLC. Depending on the outcome of certain factors, Firstar Capital might in the future receive an earn-out payment in respect of its interest in Wi ndy City Investment Holdings, LLC, under the terms of the sale. Non- proprietary mutual funds: U.S. Bank may enter into agreements with other no n-proprietary mutual funds or their service providers whereby U.S. Bank provides shareholder services and/or sub-transfer agency, custodial and other administrative support services and receives compensation for these services. Compensation received by U.S. Bank directly or indirectly from mutual funds does not increase fund fees and expenses beyond what is disclosed in the fund prospectuses. For more information, review the fund prospectus.

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Definitions of report and statement terms (page 1
of 5)
Accredited Investor: Private placement securities generally require that investors be accredited due to the additional risks and speculative nature of the securities. For natural persons, the cr iteria is met by a net worth of more than $1 million (excluding primary residence) or an income of more than $200,000 individually ($300,000 jointly) for the two most recent years and a reasonable expectation for the same in the current year. For other entities , such as corporations, partnerships, trusts and employee benef it plans, the criteria is met with at least $5 million in assets. See full definition in Rule 501 of Regulation D under the Securities Ac t of 1933.

Alpha: A measure of risk-adjusted performance. A statistic measuring that portion of a stock, fund or composite's total return attributable to specific or non-market risk. Alpha measures non-market return and indicates how much value has been added or lost.

A positive Alpha indicates the fund or composite has performed better than its Beta would predict (i.e., the manager has added value above the benchmark). A negative Alpha indicates a fund or composite has underperformed given the composite's Beta.

Alternative Investments: As used by U.S. Bank, an investment considered to be outside of the traditional asset classes of long-only stocks, bonds and cash. Examples of alternative investments include hedge funds, private equity, options and financial derivatives.

Annualized Excess Return: Shows the difference between the annualized linked returns of a portfolio and the model benchmark.

Performance reports provided annualize only periods greater than one year.

Annualized or Annual Rate of Return: Represents the average annual change in the value of an investment over the periods indicated.

Batting Average: Shows how consistently the portfolio return met or beat the market.

Beta: A measure of your portfolio's risk relative to a benchmark. A portfolio with a beta of 1.5, for example, would be expected to return roughly 1.5 times the benchmark's return. A high Beta indicates a riskier portfolio.

Bond Credit Rating: A grade given to bonds by a private independent rating service that indicates their credit quality. Ratings are the opinion of Standard & Poor's or other agencies as noted and not the opinion of U.S. Bank.

Consumer Price Index (CPI): A measure of the average change in prices over time in a market basket of goods and services and is one of the most frequently used statistics for identifying periods of inflation and deflation.

Convexity to Stated Maturity: A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes. Convexity is used as a risk-management tool and helps to measure and manage the amount of market risk to which a portfolio of bonds is exposed. This version of convexity measures the rate change in duration of a bond as the yield to (stated) maturity changes.

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Definitions of report and statement terms (page 2
of 5)
Cost basis/book value: The original value of an asset at the time it was acquired. This is normally the purchase price or appraised value at the time of acquisition. This data is for information purposes only.

Cumulative Excess Return: Shows the difference between the annualized linked returns of a portfolio and the model benchmark.

Performance reports provided use unannualized returns in period s up to one year, but annualized returns for periods exceeding on e year.

Downside Capture: The downside capture ratio reflects how a portfolio compares to a benchmark during periods when the benchmark is down. A downside capture ratio of 0.80 (or 80 percent) means the portfolio has historically declined only 80 percent as much as the benchmark during down markets.

Downside Deviation: The deviation of returns that fall below a minimum acceptable return (MAR). Although the numerator includes only returns below the MAR, the denominator includes all returns in the performance period. This risk statistic is similar to the downside standard deviation except the sum is restricted to returns less than the MAR instead of the mean.

Downside Standard Deviation: The deviation of returns that fall below the mean return. Although the numerator includes only returns below the mean, the denominator includes all returns in th e performance period. This risk statistic is similar to the downside deviation except the sum is restricted to returns less than the mean instead of the minimum acceptable return (MAR).

Effective Maturity: The date of a bond’s most likely redemption, given current market conditions, taking into consideration the optional and mandatory calls, the optional, mandatory and recurring puts, and the stated maturity.

Estimated annual income: The amount of income a particular asset is anticipated to earn over the period indicted. The shares multiplied by the annual income rate.

Gain/loss calculation: If an asset was sold, the difference between the proceeds received from the sale compared to the cost of acquiring the asset. If the value of the proceeds is the higher of the two numbers, then a gain was realized. If the value of th e proceeds is the lower of the two numbers, a loss was incurred. This data is for information purposes only.

Information Ratio: The information ratio compares the average excess return of the portfolio over its associated benchmark divided by the tracking error.

M-Squared: The hypothetical return of the portfolio after it s risk has been adjusted to match a benchmark.

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Definitions of report and statement terms (page 3
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Market Value: Publicly traded assets are valued using market quotations or valuation methods from financial industry services believed by us to be reliable. Assets, that are not publicly traded, may be reflected at values from other external sources or special valuations prepared by us. Assets for which a current value is not available may be reflected as not valued, at par value, or at a nominal value. Values shown do not necessarily reflect prices at which assets could have been bought or sold. Values are updated based on internal policy and may be updated less frequently than statement generation.

Market Value Over Time: Many factors can impact the portfolio value over time, such as contributions to the account, distributions from the account, the investment of dividends and interest, th e deduction of fees and expenses, and market performance.

Modified Duration to Effective Maturity: A formula that expresses the measurable change in the value of a security in response to a change in interest rates. This version of Modified Duration takes into consideration a “horizon date/price” that is, given curr ent conditions, the most likely redemption date/price using the set of calls/puts, as well as stated maturity.

Modified Duration to Stated Maturity: A formula that expresses the measurable change in the value of a security in response to a change in interest rates. This version of Modified Duration uses stated maturity as the “horizon date/price” and ignores any potential call/put/pre- refunding, even if they are mandatory.

Price/Earnings Ratio (P/E): The P/E ratio of a company is calculated by dividing the price of the company’s stock by its trailing 12-month earnings per share. A high P/E usually indicates that the market is paying a premium for current earnings because it believes in the firm’s ability to grow its earnings. A low P/E indicates the market has less confidence that the company’s earnings will increase. Within a portfolio, P/E is the weighted average of the price/earnings ratios of the stocks in the portfolio.

Qualified Purchaser: Some private placement securities require that investors be Qualified Purchasers in addition to being Accredited Investors. For natural persons, the criteria is generally met when the client (individ ually or jointly) owns at least $5 million in investments. For other entities, such as corporations, partnerships, trusts and em ployee benefit plans, the criteria is met with at least $25 mi llion in investments though there are other eligibility tests that may appl y. See full definition in Section 2(a)(51) of the Investment Company Act of 1940.

R-Squared: Measures the portion of the risk in your portfolio th at can be attributed to the risk in the benchmark.

Realized and Unrealized Gains/Losses: Are calculated for individual tax lots based on the records we have available. Some data may be incomplete or differ from what you are required to report on your tax return. Some data used in these calculations may have beeno b t a i n e d from outside sources and cannot be verified by U.S. Bank. The da ta is intended for informational purposes only and should not be used for tax reporting purposes. Please consult with your tax or legal advisor for questions concerning your personal tax or financial situation.

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Definitions of report and statement terms (page 4
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Residual Risk: The amount of risk specific to the assets in a portfolio distinct from the market, represented by a benchmark.

Return: An indication of the past performance of your portfolio.

Sharpe Ratio: Measures of risk-adjusted return that calculates the return per unit of risk, where risk is the Standard Deviation of your portfolio. A high Sharpe ratio indicates that the portfolio is benefiting from taking risk.

Sortino Ratio: Intended to differentiate between good and bad volatility. Similar to the Sharpe ratio, except it uses downside deviation for the denominator instead of standard deviation, the use of which doesn't discriminate between up and down volatility.

Spread: The difference between the yields of two bonds with differing credit ratings (most often, a corporate bond with a certain amount of risk is compared to a standard traditionally lower risk Treasury bond). The bond spread will show the additional yield that could be earned from a bond which has a higher risk.

Standard Deviation: A measure of the volatility and risk of your portfolio. A low standard deviation indicates a portfolio with less volatile returns and therefore less inherent risk.

Time-weighted Return: The method used to calculate performance. Time-weighted return calculates period by period returns that negates the effect of external cash flows. Returns for periods of greater than one year are reported as an annualized (annual) rate of return. Returns of less than one year are reported on a cumulative return basis. Cumulative return is the aggregate amount an in vestment has gained or lost over time, independent of the period involved.

Tracking Error: A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge or mutual fund that did not wo rk as effectively as intended, creating an unexpected profit or loss instead.

Traditional Investments: As used by U.S. Bank, an investment made in equity, fixed income or cash securities, mutual funds or exchange- traded funds (ETFs) where the investor buys at a price with the goal that the investment will go up in value.

Top 10 Holdings: The 10 assets with the highest market values in the account.

Total Portfolio Gross of Fees: Represents all assets included in the calculation of the portfolio, before the deduction of trust and asset management fees, and is inclusive of all applicable third-party security fees and expenses. Details of those fees and expenses are provided in the security’s prospectus or offering documents.

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Definitions of report and statement terms (page 5
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Total Return: The rate of return that includes the realized and unrealized gains and losses plus income for the measurement period.

Treynor Ratio: Measures the performance of a sector relative to risk by dividing the return of the sector in excess of the risk-free return by the sector's Beta. The higher the Treynor ratio, the better the return relative to risk.

Turnover Percent: Indicates how frequently asset are bought and sold within a portfolio.

Turnover Ratio: The percentage of a mutual fund’s or other investment vehicle' s holdings that have been "turned over" or replaced with other holdings in a given year.

Unrealized gain (loss) — The difference between the current market value (at th e end of the statement period) and the cost to acquire the asset. If the current market value is higher than the cost, a gain is reflected. If the current market value is lower than the cost paid, a loss is reflected. This data is for information purposes only.

Upside Capture: The upside capture ratio reflects how a portfolio compares to the selected model benchmark during periods when the benchmark is up. An upside capture ratio of 1.15 (or 115 percent) means the portfolio has historically beat the benchmark by 15 percent during up markets.

Yield: The annual rate of return on an investment, expressed as a percentage. For bonds, it is the coupon rate divided by the market price.

For stocks, it is the annual dividend divided by the market price.

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Frequently used indexes (page 1 of 5)
Bloomberg Barclays 1-3 year U.S. Treasury Index: Measures the performance of the U.S. government bond market and includes public obligations of the U.S. Treasury with a maturity between one year and up to (but not including) three years.

Bloomberg Barclays 1-5 year U.S. Treasury Index: Includes all publicly issued, U.S. Treasury securities that have a remaining maturity of greater than or equal to one year and less than five years, are rated investment grade and have $250 million or more of outstanding face value.

The Bloomberg Barclays 1-5 year Municipal Index: Measures the performance of municipal bonds with time to maturity of more than one year and less than five years.

Bloomberg Barclays 7-year Municipal Index: Includes municipal bonds with a minimum credit rating of Baa that have been issued as part of a transaction of at least $50 million, have a maturity value of at least $5 million and a maturity range of four to six years.

Bloomberg Barclays Global Aggregate Index ex-U.S. Index: Measure of global investment grade debt from 24 local currency markets. This multi-currency benchmark includes Treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

Bloomberg Barclays Global Treasury ex-U.S. Index: Includes government bonds issued by investment-grade counties outside the United States, in local currencies, that have a remaining maturity of one year or more and are rated investment grade.

Bloomberg Barclays High Yield Municipal Bond Index: An unmanaged index made up of bonds that are non-investment grade, unrated or below Ba1 bonds.

Bloomberg Barclays Intermediate Aggregate Index: Consists of one- to 10-year governments, one- to 10-year corporate bonds, all mortgages and all asset-backed securities within the Aggregate Index.

Bloomberg Barclays Mortgage-Backed Securities Index: Covers agency mortgage-backed pass-through securities (both fixed-rate and hybrid adjustable-rate mortgages) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).

Bloomberg Barclays U.S. Aggregate Bond Index: Measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities.

Bloomberg Barclays U.S. Corporate Bond Index: Measures the investment grade, fixed-rate, taxable corporate bond market and includes U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers.

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Frequently used indexes (page 2 of 5)
Bloomberg Barclays U.S. Corporate High Yield Bond Index: Measures the U.S. dollar denominated, high yield, fixed-rate corporate bond market.

Bloomberg Barclays U.S. Municipal Bond Index: Measures the investment grade, U.S. dollar-denominated, fixed tax-exempt bond market. The index includes state and local general obligation, revenue, insured and pre-refunded bonds.

Bloomberg Barclays U.S. Treasury Index: Measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury.

Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index: An unmanaged index includes all publicly issued, U.S. TIPS that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding facev a l u e .

Cambridge U.S. Private Equity Index: This index is based on returns data compiled for U.S. private equity funds (including buyout, growth equity and mezzanine funds) that represent the majority of institutional capital raised by private equity partnerships formed since 1986. Returns may be delayed by up to six months. Quarterly performance is prorated based on the cube root for the months of the quarter.

Citigroup 3-Month Treasury Bills: An unmanaged index and represents monthly return equivalents of yield averages of the last three-month Treasury Bill issues.

Citigroup 6-Month Treasury Bills: An unmanaged index and represents monthly return equivalents of yield averages of the last six-month Treasury Bill issues.

Credit Suisse Leverage Loan Index: Represents tradable, senior-secured, U.S. dollar-denominated non-investment grade loans.

Dow Jones Industrial Average (DJIA): The price-weighted average of 30 significant U.S. stocks traded on the New York Stock Exchange and NASDAQ. The DJIA is the oldest and single most watched index in the world.

Dow Jones Select REIT Index: Measures the performance of publicly traded REITs and REIT-like securities in the U.S. and is a proxy for direct real estate investment, in part by excluding companies whose performance may be driven by factors other than the value of real estate.

HFRI Indices: The Hedge Fund Research, Inc. (HFRI) indexes are a series of benchmarks designed to reflect hedge fund industry performance by constructing composites of constituent funds, as reported by the hedge fund managers listed within the HFR Database.

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Frequently used indexes (page 3 of 5)
HFRI Equity Hedge Total Index: Uses the HFR (Hedge Fund Research) database and consists only of equity hedge funds with a minimum of $50 million assets under management or a 12-month track record and that reported assets in U.S. dollars.

HFRI Relative Value Fixed Income Corporate Index: Uses the HFR (Hedge Fund Research) database and consists of only relative value fixed income corporate funds with a minimum of $50 million assets under management or a 12-month track record and that reported assets in U.S. dollars.

ICE BofAML 1-3 Year Corporate Index: Tracks U.S. dollar-denominated investment grade public debt issued in the U.S. bond market with maturities of one to three years.

ICE BofAML 1-5 Year Corporate and Government Index: Tracks the performance of short-term U.S. investment grade government and corporate securities with maturities between one and five years.

ICE BofAML U.S. 7-10 Year Index: Tracks the performance of U.S. dollar denominated investment grade rated corporate debt publicly issued in the U.S. domestic market and includes all securities with a remaining term to maturity of greater than or equal to seven years and less than 10 years.

ICE BofAML Global Broad Market Index: Tracks the performance of investment grade public debt issued in the major domestic and Eurobond markets, including global bonds.

ICE BofAML U.S. High Yield Master II Index: Commonly used benchmark index for high yield corporate bonds and measures the broad high yield market.

J.P. Morgan Emerging Markets Bond Index Global (EMBI Global): Tracks total returns for traded external debt instruments in the emerging markets.

London Interbank Offered Rate (LIBOR) 3-months: The interest rate offered by a specific group of London banks for U.S. dollar deposits with a three-month maturity.

London Interbank Offered Rate (LIBOR) 9-months: The interest rate offered by a specific group of London banks for U.S. dollar deposits with a nine-month maturity.

MSCI All Country World Index (ACWI): Designed to measure the equity market performance of developed and emerging markets.

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Frequently used indexes (page 4 of 5)
Russell 2000 Value Index: Measures companies in the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2,000 firms fr om the Russell 3000 Index with the smallest market capitalizations.

Russell 3000 Index: Measures the performance of the 3,000 largest U.S. securities based on total market capitalization.

Russell Midcap Index: Measures the 800 smallest companies in the Russell 3000 Index.

Russell Midcap Growth Index: Measures companies in the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values.

Russell Midcap Value Index: Measures companies in the Russell Midcap Index having lower price-to-book ratios and lower forecasted growth values.

MSCI All County World ex-U.S. Index (ACWI, excluding United States): Tracks the performance of stocks representing developed and emerging markets around the world that collectively comprise most foreign stock markets. U.S. stocks are excluded from the index.

MSCI EAFE Index: Includes approximately 1,000 companies representing the stock markets of 21 countries in Europe, Australasia and the Far East.

MSCI Emerging Markets (EM) Index: Designed to measure equity market performance in global emerging markets.

MSCI World Index: Tracks equity market performance of developed markets through individual country indices.

NAREIT Index: Includes REITs (Real Estate Investment Trusts) listed on the New York Stock Exchange, NASDAQ and American Stock Exchange.

NASDAQ Composite Index: A market capitalization-weighted average of roughly 5,000 stocks that are electronically traded in the NASDAQ market.

NCREIF Property Index (NPI): Measures the investment performance of a very large pool of individual commercial real estate properties acquired in the private market for investment purposes only.

Russell 1000 Index: Measures the performance of the 1,000 largest companies in the Russell 3000 Index and is representative of the U.S. large capitalization securities market.

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Frequently used indexes (page 5 of 5)
Russell 1000 Growth Index: Measures companies in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values. It includes the largest 1,000 firms in the Russell 3000 Index.

Russell 1000 Value Index: Measures companies in the Russell 1000 Index with lower price-to-book ratios and lower forecasted growth values. It includes the largest 1,000 firms in the Russell 3000 Index.

Russell 2000 Index: Measures the performance of the 2,000 smallest companies in the Russell 3000 Index and is representative of the U.S. small capitalization securities market.

Russell 2000 Growth Index: Measures companies in the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. and is representative of U.S. securities exhibiting growth characteristics. The Russell 2000 Index in cludes the 2,000 firms from the Russell 3000 Index with the smallest market capitalizations.

S&P 500 Index: Consists of 500 widely traded stocks that are considered to represent the performance of the U.S. stock market.

S&P Global ex-U.S. Property Index: Measures the investable universe of publicly traded property companies domiciled in developed and emerging markets excluding the United States. The companies included are engaged in real estate related activities such as property ownership, management, development, rental and investment.

S&P GSCI: A composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures that is broadly diversified across the spectrum of commodities.

S&P/Case-Shiller Home Price Indexes: A group of indexes that track changes in home prices throughout the United States. Case- Shiller produces indexes representing certain metropolitan statistical areas (MSA) as well as a national index.

Swiss Re Global Cat Bond Total Return Index: Tracks the aggregate performance of all U.S. dollar-denominated euros and Japanese yen-denominated catastrophe bonds, capturing all ratings, perils and triggers.

U.S. Dollar Index: Indicates the general international value of the U.S. dollar by averaging the exchange rates between the U.S. dollar and six major world currencies.

Wilshire 5000 Index: Composed of more than 6,700 publicly-traded U.S. companies and is designed to track the overall performance of the American stock markets.

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1/3/23, 2:07 PM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
January 03, 2023
LAIF Home
PMIA Average Monthly
Yields

CITY OF CUPERTINO

FINANCE MANAGER
10300 TORRE A VENUE
CUPERTINO, CA 95014
Account Number:

December 2022 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 21,170,972.93
Total Withdrawal 0 00 Ending Balance 21,170,972.93
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CITY OF CUPERTINO
Agenda Item
22-11541 Agenda Date: 2/7/2023
Agenda #: 13.

Subject: Consider adoption of a resolution establishing the Commemorative Bench Dedication Policy and waiving the commemorative fee for Marilyn Francesco Adopt Resolution No. 23-024 (Attachment A) establishing the Commemorative Bench Dedication Policy and allow a one-time waiver of the policy for Marilyn Francesco CITY OF CUPERTINO Printed on 2/1/2023Page 1 of 1
powered by Legistar™
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CITY COUNCIL STAFF REPORT
Meeting: February 7, 2023

Subject
Consider adoption of a resolution establishing the Commemorative Bench Dedication Policy and waiving the commemorative fee for Marilyn Francesco.

Recommended Action
Adopt Resolution No. 23-XXX (Attachment A) establishing the Commemorative Bench Dedication Policy and allow a one-time waiver of the policy for Marilyn Francesco.

Background
On October 17, 2017, the City Council adopted Resolution No. 17-102 to establish a Donation Policy for accepting donations and providing guidelines to govern the management and disposition of donations. The guidelines were created to ensure that monetary donations were legal, supported a public purpose and were consistent with City of Cupertino values. Although the Donation Policy included a Park and Public Improvement Donation, it did not include a specific guideline related to the donation of a bench to commemorate or recognize a person.

Staff brought an item to the Council on May 3, 2022, for consideration to approve an installation of a plaque requested by Marilyn Francesco on a bench at Memorial Park in memory of Robin Andy. The Council did not approve the recommendation and directed staff to bring back a proposed policy and procedure for consideration of requests for donation of objects on City property, including potential locations for memorial plaques.

Discussion
The attached draft Commemorative Bench Dedication Policy will serve as a guide for the acceptance and placement of commemorative benches at parks or public areas within the City.

Staff conducted research to determine the number of previously approved memorial benches and found two instances since 2015 where a memorial bench with plaque was approved by Council. The first instance was on June 2, 2015, when the City Council accepted a bench with a plaque in memory of Mrs. Virginia Logan, at Memorial Park, adjacent to the Cupertino Senior Center. The second was on September 6, 2016, when 315
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City Council accepted a donation of a bench with a plaque in memory of Erik Chen to be placed at Creekside Park.

Staff also performed research on the Commemorative Bench Dedication Policy by reviewing policies of multiple neighboring agencies: Mid-Peninsula Open Space, Town of Los Gatos, San Mateo County, City of Palo Alto, City of Saratoga, and City of Los Altos. Specifically, the evaluation compared the terms and cost of the benches to ensure the City’s proposed policy is comparable to the neighboring agencies.

The draft policy includes information related to the general rules and regulations, procurement and installation of benches, location of benches, term of dedication, cost, and approval process.

The following provides a brief description of each of the categories.

General Rules and Regulations
This section provides information related to the prohibition of dedicating a bench other than to commemorate or recognize a person. In addition, the rule stipulates that only one bench shall be dedicated to any single person or family.

Procurement and Installation
The City will purchase the bench and plaque as well as perform the installation. The installation date will be recorded in the City’s CMMS (Computerized Maintenance Management System) software, also known as CityWorks.

Bench Locations
The applicant will be required to coordinate with City staff to determine the bench location so as to not interfere with normal park use or maintenance operations and so that it is positioned to maximize and benefit an area.

Dedication Term
The dedication term is proposed to be 10 years with an option to allow the applicant to contribute an additional donation for another 10-year term for a total maximum term of 20 years.

Cost
The cost to install the bench and plaque along with maintenance for the duration of 10- years is $5,000. If the applicant chooses to extend the term to 20-years, an additional $2,500 will be collected after the expiration of the original 10-year term. These costs are meant to be cost recovery for the City and may be adjusted every five-years by the Consumer Price Index (CPI) at the City Council’s discretion.

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Approval Process
The applicant will be required to apply for City’s review and meet with City staff on site to determine the appropriate bench location. The plaque may be inscribed with a brief commemorative statement as specified in the policy. Once approved, staff will order the bench and plaque and perform the installation upon receiving payment from the applicant.

One-Time Waiver
Staff is recommending Council to waive the fee and the bench installation requirement for the applicant, Marilyn Francesco, since her application was previously brought to Council for consideration on May 3, 2022, and the applicant has already purchased a plaque. Further, this plaque would be placed on an existing bench if the waiver is approved.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact for establishing the Commemorative Bench Dedication Policy. The one- time waiver of the fee would result in the City not collecting the $5,000 fee; however, Marilyn Francesco has already purchased a plaque that meets the requirements of the policy, and installation of the plaque would require less than 1 hour of staff time to install on an existing bench.

_____________________________________

Prepared by: Jimmy Tan, Assistant Director of Public Works Reviewed by: Chad Mosley, Interim Director of Public Works Reviewed and Approved for Submission by: Pamela Wu, City Manager Attachments:

A – Draft Resolution
B – Draft Commemorative Bench Dedication Policy

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Attachment A
RESOLUTION NO. 23-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL ESTABLISHING A

COMMEMORATIVE BENCH DEDICATION POLICY

WHEREAS, the City of Cupertino wishes to establish a uniform policy and set of procedures for the acceptance of capital gifts to the City, including memorials and recognition items; and

WHEREAS, the proposed policy provides a formal process for acceptance and documentation of memorial bench donation; and

WHEREAS, the City of Cupertino wishes to ensure that the placement of bench memorials and plaques are suitable for the location proposed and that the memorial benches are appropriate for the City and can be maintained properly.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby adopts and approves the recommended Commemorative Bench Dedication Policy as set forth in Attachment B.

BE IT FURTHER RESOLVED THAT the fee established under Section VII of the Commemorative Bench Dedication policy is waived with respect to the application received from Marilyn Francesco in May 2022.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 7
th day of February 2023, by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

________
Hung Wei, Mayor
City of Cupertino

________________________
Date
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Resolution No. __________________ Attachment A

ATTEST:

________
Kirsten Squarcia, City Clerk

________________________
Date

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EXIHIBIT A

Appropriation
Amendment by
Fund
Appropriation
Amendment
Revenue
Amendment
Fund Balance
(Use of)
Capital Projects
Fund
$96,658 $0 ($96,658)
Total
Appropriation
Amendment
$96,658 $0 ($96,658)

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ATTACHMENT B

COMMEMORATIVE BENCH DEDICATION POLICY

I. PURPOSE

This policy establishes Cupertino ’s guidelines for individuals to commemorate or recognize a person with the purchase and placement of a bench approved by the City of Cupertino. This policy will serve as a guide for placement of commemorative benches in parks or public areas within the City.

With respect to commemorative benches, this policy takes precedence over Resolution No. 17-102 “Donation Policy”; and Resolution No. 17-103 “Naming of City Facilities” since these policies do not include specific guidelines to address these amenities.

II. GOVERNING RULES AND REGULATIONS

1. The Department of Public Works will accept donations for benches that commemorate or recognize a person provided that all provisions of the policy are met.

2. The Director of Public Works shall establish a procedure for applying for placement of a commemorative bench and has the authority to approve or deny any bench donation.

3. The City will only accept bench donations that commemorate, memorialize, or recognize an individual or family by name who has a direct connection to the City of Cupertino. No organizations or groups will be considered.

4. Only one bench shall be dedicated to any single person or family, unless there is a compelling reason for additional dedications as shall be determined by the Director of Public Works.

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ATTACHMENT B

III. BENCHES

1. The City will purchase a standard bench and plaque to maintain consistency through the park system and to ensure quality.

2. Following installation, all benches will be recorded in the City’s Computerized Maintenance Management System (CMMS) software. This will serve to track the installation date and maintenance history for the bench.

IV. LOCATION OF BENCHES

1. Memorial benches will be positioned to maximize their benefit to an area. The number of benches will be limited within a park so as to not interfere with normal park use or maintenance operations and shall not detract from the prime recreational purpose of an area.

3. The applicant will coordinate with city staff to determine the appropriate location of the bench. The City reserves the right to limit or prescribe bench locations as determined by the Director of Public Works.

4. The City reserves the right to remove any benches that have been damaged, and which are, in the view of City staff, beyond repair.

5. The City accepts no liability for damages to any bench from vandals or third parties.

V. PLAQUE

1. The plaque may be inscribed with a short commemorative statement recognizing or memorializing the individual or family selected by the donor (e.g., “In Memory of . . .”; “In Loving Memory of . . ."; “Dedicated to . . .”) and may include the date of dedication.

VI. TERM OF DEDICATION

1. The memorial bench dedication will have a term of 10 years with one ten- year renewal option. Should the original applicant decline to rededicate an existing bench or fail to notify the Department of Public Works of an intent to rededicate an existing bench within 60 days of the expiration date of the original 10-year term, the applicant will be contacted to pick up the commemorative plaque from the City. The retire d bench will not be available to the applicant and will be reused or recycled. It is the responsibility of the applicant or their designated representative to retrieve the removed plaque within 60 days after the end of the agreement.

2. The maximum term for any single memorial bench is 20 years, after which 322
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ATTACHMENT B

time the bench will be removed, and the location shall be available for re-use.

3. During the 10-year term, or 20-year term with additional re -dedication, the Department of Public Works will provide regular maintenance of the bench.

VII. FEE

1. The fee for the installation and maintenance of a memorial bench shall be $5,000 for a term of ten years. The fee includes the cost of the concrete bench footing or concrete pad, procurement and installation of the bench and plaque, and 10-year sponsorship of the donated bench and plaque . An additional ten-year term can be acquired for a renewal fee of $2,500 at the expiration of the first ten-year agreement.

2. Costs will adjust every five years to align with the Consumer Price Index (CPI) as determined by the Director of Public Works.

VIII. APPROVAL PROCESS

1. The applicant must submit an application to the City’s Public Works Department.

2. The applicant and City staff shall meet at the site to determine the appropriate location of the bench.

3. The Director of Public Works will review and approve or deny the proposed bench location and plaque.

4. The City staff will order the bench and plaque and perform the installation.

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ATTACHMENT B

2 The City of Cupertino acknowledges and thanks individuals and institutions who wish to donate a bench. This Application Form is intended to memorialize the understanding between the city and the Donor.

Name: E-Mail:

Mailing Address:

Home Phone: Mobile Phone: ______________________________ Fax:

Requested Location: ___________________________________________________

Memorial Bench Plaque Inscription Request:

__________________________________________________

__________________________________________________

__________________________________________________

In addition to the foregoing, the Donor understands and agrees that:
a. Once signed, this application serves as an understanding of the Commemorative Bench Dedication Policy and receipt of payment.

Signature: Date:

Name (Print): ________________________________________

FOR CITY USE ONLY
Approved/Declined by (Name/Title, Council) on (Date). 324
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CITY OF CUPERTINO
Agenda Item
22-11858 Agenda Date: 2/7/2023
Agenda #: 14.

Subject: Informational memorandum regarding retail square footage analysis of Main Street Receive the informational memorandum on the retail square footage analysis and the provisions for restaurant use at the Main Street Cupertino project
CITY OF CUPERTINO Printed on 2/1/2023Page 1 of 1
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CITY OF CUPERTINO
10300 Torre Avenue, Cupertino, California 95014 (408) 777-3308

To: City of Cupertino City Council

CC: Pamela Wu, City Manager
Luke Connolly, Acting Director of Community Development

From: Gian Paolo Martire, Senior Planner

Date: February 7, 2023

Subject: Informational update regarding retail and restaurant uses for the Main Street Mixed-Use Development

Background
The Main Street mixed -
use project (see Figure 1)
was approved by the City
Council o n September 4,
2012. The project includes
130,500 square feet of
retail, a 180 -room hotel, a
multi-level parking
garage, 260,000 square
feet of office space, and a
120-unit live/work rental
loft development.

Discussion
Like other, similar mixed-use developments, Main Street was envisioned as a place where visitors could have a range of experiences, such as dining and shopping, without the need to drive to another venue. When the Main Street project was approved, the City Council Resolution 12-098 (M-2012-03) included a condition that stated the following regarding restaurant uses onsite:

9 MAXIMUM PERCENTAGE OF RESTAURANTS
The maximum square footage of food service uses permitted within the retail space of the mixed­use development shall not be more than 40% of the total retail square footage of 130,500 square feet (or a maximum of 52,600 square feet of restaurant uses) based upon the approved development plan dated August 15, 2012 in accordance with the Main Street Cupertino-Revised Proposed Project Analysis report as Appendix A in the Second 326
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Page 2 ends

2 Addendum to the Final Certified 2009 EIR prepared by Fehr and Peers. Any future refinements to the restaurant percentage may be approved by the Director of Community Development if a subsequent parking and traffic analysis indicates that there is adequate parking for the various mixtures of uses and there are no additional and/or new significant traffic impacts compared to thresholds studied in the original 2009 Environmental Impact Report and 2012 Addendum.

In July 2015, nearly three years after Main Street was approved, Fehr& Peers , a transportation consulting firm, completed their Main Street Parking Analysis and submitted their findings to the Director of Community Development. The conclusion of their analysis was that the 40% restaurant cap is maintained by distinguishing food service uses between “restaurants” and “specialty foods.” Specialty foods is defined in the Municipal Code as , “uses such as bakeries, donut shops, ice cream stores, produce markets and meat markets, or similar establishments where food is prepared and/or sold primarily for consumption off the premises.” These specialty food uses are distinguished from restaurants, where food is generally served and eaten on the premises , and are treated as general retail not subject to the 40% restaurant cap cited in Condition #9 of the Resolution.

Over the last year there have been inquiries regarding the percentage of restaurant use s out of the total 130,500 square feet of retail space at Main Street. Presently, based on City and property owner information, the total restaurant square footage is at or slightly over 40%, being approximately 41% . If sp ecialty food uses , which would include current tenants such as Philz Coffee, Meet Fresh, and others , were considered the same as restaurants that would raise the percentage of “food service” (i.e., restaurant + specialty foods) uses to slightly over 50% of the 130,500 Main Street retail area.

Conclusion
While additional analysis could be done to refine and reconcile the differences between City and property owner data, such as minor differences that exist in the floor areas of individual tenant spaces, it can be concluded that the overall percentage of restaurant uses would not change much, if at all, for the Main Street center and that the center is presently in substantial conformance with Condition #9 of the Resolution. The 40% restaurant cap at Main Street was included in the Resolution primarily to address potential parking concerns, since restaurants typically have a higher parking demand than traditional retail uses, but the cap can also be used as a mechanism to try to retain more traditional retail uses at the location. Condition #9 of the Resolution includes a provision allowing for the Director of Community to use discretion regarding the 40% cap “if a subsequent parking and traffic analysis indicates that there is adequate parking for the various mixtures of uses and there are no additional and/or new significant traffic impacts compared to the thresholds studied in the original 2009 Environmental Impact Report and 2012 Addendum.” This provision provides flexibility to adjust the cap while ensuring impacts to the community will be avoided. 327
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CITY OF CUPERTINO
Agenda Item
23-11997 Agenda Date: 2/7/2023
Agenda #: 15.

Subject: Consider adopting Cupertino City Council Procedures Manual Approve Resolution No. 23-021, adopting Cupertino City Council Procedures Manual CITY OF CUPERTINO Printed on 2/1/2023Page 1 of 1
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CITY COUNCIL STAFF REPORT
Meeting: February 7, 2023

Subject
Consider adopting Cupertino City Council Procedures Manual Recommended Action
Approve Resolution No. 23-____, adopting Cupertino City Council Procedures Manual Discussion
The City Council has previously adopted resolutions that govern some aspects of Council procedure, such as the order of business (Resolution No. 19-062). However, the City has no comprehensive set of procedures governing the conduct of Council meetings and other Council activities. The dearth of formal procedures governing the conduct of Council meetings, Council’s relationship with advisory bodies, and various administrative matters is uncommon in peer jurisdictions.

On January 17, 2023, Council considered a draft Cupertino City Council Procedures Manual and provided preliminary feedback to staff. Following the January 17 meeting, Council provided comments on the draft Manual, which were consolidated and presented to Council and the public for consideration at a study session held on January

25. At that meeting, Council provided direction to the City Manager and City Attorney via a series of straw poll votes and approved a motion directing staff to return to Council with a revised Procedures Manual that reflects the results of the straw poll votes. Attachment A show revisions reflecting the direction provided by Council. In addition, the revised Manual reflects the City Manager’s recommendation to remove the Ceremonial Correspondence Policy for consideration as a future agenda item. Staff recommends that the adoption of the Ceremonial Correspondence Policy and revisions to other Council policies be considered for inclusion in the Fiscal Year 2024 work program.

The revised Procedures Manual includes the following sections, with noteworthy modifications or additions to current procedures or policies listed in italics:

1. Introduction. Describes the purpose of the Manual and includes statements regarding values and Brown Act compliance
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2. Selection of the Mayor and Vice Mayor. Establishes procedures for the selection and removal of the Mayor and Vice Mayor
The Mayor and Vice Mayor would be prohibited from serving consecutive terms.

A procedure for removal of the Mayor and Vice Mayor would be established.

3. Councilmember Committees and Subcommittees. Establishes procedures for the appointment and operation of Council committees and subcommittees

4. Other City Commissions and Committees. Establishes procedures for the appointment and operation of other City commissions and committees and rules regarding the relationship between Councilmembers and these advisory bodies Former Councilmembers would not be eligible to serve on commissions or commit tees for four years after their term expires.

New
rules are proposed to prevent undue influence on City commissions.

5. Administrative Matters. Addresses attendance at Council meetings, Councilmember correspondence, appointments to regional bodies, responses to public correspondence, proclamations, reimbursement of Council expenses, and Councilmember ethics training
Standards would be established for various administrative matters.

6. Relationship with City Staff. Incorporates by reference and expands upon existing rules governing Council-staff relations codified in Municipal Code Chapter 2.17
Decorum requirements relating to public criticism of staff are clarified.

A new rule is proposed to prevent Councilmembers from using the Public Records Act to circumvent limits on individual Councilmembers’ ability to influence staff workloads.

7. Agendas and Staff Reports. Establishes a process for requesting future agenda items, the process for preparation and publication of the agenda, and formats for agenda item descriptions and staff reports
New procedures are proposed to formalize the future agenda item list and agenda preparation process.

Rules for agenda item descriptions are proposed to reflect Brown Act guidelines and a recent court ruling.

Minor modifications to the format of staff reports are proposed. 330
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8. Meeting Procedures. Establishes procedures for the scheduling and conduct of Council meetings
Council would adopt a meeting schedule at the beginning of each calendar year.

Modifications to the order of business are proposed.

Changes to the process for public comment on consent items and removing items from the consent calendar are proposed.

Rules establishing procedures and time limits for public comments are proposed.

Standards for decorum would be required for Council and City staff and recommended for members of the public.

Council would be required to disclose ex parte contacts prior to deliberation on any quasi- adjudicative matter.

Standards for relevance of Council deliberations would be clarified.

A procedure would be established for allocating time to Councilmembers during deliberations, including a modification of procedural rules for limiting debate.

Limits would be imposed on beginning discussion of an agenda item after 10:30 p.m. and continuing a Council meeting after 11:00 p.m.

Public hearing procedures would be established.

Council would formally recess at a set time each year.

9. Closed Sessions. Establishes procedures for closed session meetings

10. Enforcement of Rules; Suspension of Rules. Addresses process for enforcement and suspension of the rules set forth in the Procedures Manual Staff recommends adopting the Procedures Manual, as revised based on Council’s input.

Staff further recommends that the adoption be effective on February 8, 2023 to allow time to prepare for the February 21 Council meeting.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.
_____________________________________

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Prepared by: Christopher D. Jensen, City Attorney
Approved for Submission by: Pamela Wu, City Manager

Attachments:

A - Draft Cupertino City Council Procedures Manual (redline) B - Draft Resolution
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1 City of Cupertino
City Council Procedures
Manual

Attachments:

Ex. A – Ceremonial Correspondence
Policy
Ex. BA – Elected Officials’
Compensation Program
Ex. CB – Council Technology Policy
Ex. DC – Resolution No. 07-103
Ex. ED – Municipal Code Chapter

2.17 Effective Date:

DRAFT February 8, 2023
Responsible Departments:

City Manager’s Office
Related Policies & Notes:

See Exhibits A–ED.

1. Introduction

1.1 Purpose. The purpose of this Manual is to promote communication, understanding, fairness, and trust among the members of the City Council, City staff, and members of the public concerning their roles, responsibilities, and expectations for management of the business of the City of Cupertino.

1.2 Values. Courtesy and respect for individual points of view should be practiced at all times. All Councilmembers shall respect each other’s right to disagree. All Councilmembers shall act with decorum and courtesy.

1.3 Brown Act. All actions of the City Council and City commissions, committees, and subcommittees shall comply with the Ralph M. Brown Act.

2. Selection of the Mayor and Vice Mayor

2.1 Selection of Mayor and Vice Mayor. The Mayor and Vice Mayor shall be selected annually at a special meeting on the second Thursday of December.

The Mayor and Vice Mayor shall not serve consecutive terms; provided, however, this provision shall not prevent the Vice Mayor from succeeding to the office of Mayor.

2.2 Removal of Mayor and Vice Mayor. The Mayor or Vice Mayor may be removed from office, for cause, by a 4/5ths affirmative vote of the members.

Removal for cause shall mean removal of a Councilmember because of such 333
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2 member’s (a) willful and continued failure substantially to perform their duties, (b) conviction for, or guilty plea to, a felony, or a crime involving moral turpitude, (c) abuse of illegal drugs or other controlled substances or habitual intoxication, or (d) other illegal activities. The removal should proceed with a formal warning, which states with proven evidence of the member’s failure to perform their duties and proposed corrective measures. The Mayor or Vice Mayor must be advised of the proposed cause for removal at least 72 hours before any action is taken. If the Mayor is removed from office, the Vice Mayor shall become Mayor. If either officer is removed from office, the Vice Mayor shall be appointed from among the remaining three Councilmembers.

3. Councilmember Committees and Subcommittees

3.1 Appointment. The Mayor shall appoint Councilmembers to standing and ad hoc committees and subcommittees established by the City Council, subject to ratification by the Council at its next regular meeting. It will be the responsibility of the committees and subcommittees to inform and submit recommendations to the Council.

3.2 Instructions and Expectations. The Council shall make certain that all Council committees and subcommittees are properly instructed in their assigned scope of work and responsibilities. The committee’s or subcommittee’s jurisdiction shall be defined in writing and approved by a majority of the City Council. All Council committees and subcommittees having a continuing or indefinite jurisdiction shall be subject to the Brown Act.

3.3 Reporting. Council committee and subcommittee members are to keep the Council informed of the work and progress of their committee or subcommittee. These reports or minutes shall be made in writing whenever a recommendation is made to the Council.
4 Other City Commissions and Committees

4.1 Responsibility. The Council will make appointments to City’s commissions and committees. Qualifications to serve on commissions and committees shall be set forth in the Municipal Code or by a resolution or motion of the Council that is not inconsistent with the Municipal Code. Appointment of Councilmembers to City committees shall be governed by the procedures in Section 3.
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3 4.2 Attendance at Council Meetings. At least one commission member, preferably the Chair or Vice Chair, must attend City Council meetings when the commission has an item of interest on the Council agenda, so as to be available to answer Council questions. Staff shall provide the commission with advance notice for the commission to select a member to attend the City Council meeting.

4.3 Performance Expectations. The Council shall make certain that all commissions and committees are properly instructed on their responsibilities and performance expectations. This will include the issuance of a Council- approved Commission and Committee Handbook and a mandatory annual training session for all Commission and Committee members.

4.4 Appointment. Commission and Committee applicants will be interviewed by the Council before being voted on by the Council in a noticed public meeting.

Applicants are considered by motion and appointed by a majority vote of Council. Two members of an immediate family or persons residing in the same household shall not be allowed to serve simultaneously on the same commission or committee. Immediate family members residing in the same household as a Councilmember are not eligible for appointment to any commission or committee. Former Councilmembers are not eligible for appointment to any commission or committee within four years of having served on the City Council.

4.5 Removal. The City Clerk shall remove commission or committee members for failure to comply with attendance policies adopted in the Commission and Committee Handbook Commissioner’s Handbook. Council retains full discretion to review commission and committee member performance and may take disciplinary action as needed, including removal from the commission or committee.

4.6 Undue Influence on Commissioners. Councilmembers should not attempt to influence or publicly criticize commission recommendations or to influence or lobby individual commission members on any item under their consideration.

It is important for commissions to be able to make objective recommendations to the City Council on items before them. Councilmembers that attempt to influence commission positions on an item may prejudice or hinder their role in reviewing the commission’s recommendation as a member of the City Council.

Individual Councilmembers and commissioners shall have the right to attend meetings of Cupertino commissions and other Cupertino governmental bodies but shall refrain from speaking or becoming involved in deliberations. 335
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4 5. Administrative Matters

5.1 Attendance. City Councilmembers acknowledge that attendance at lawful meetings of the City Council is part of their official duty. Councilmembers shall make a good faith effort to attend all such meetings. Council members shall notify the Mayor or the City Clerk if they will be absent from a meeting.

Council attendance will be noted in the agenda of the next regular meeting and thereafter for that calendar year, if five or more regular meetings are missed.

5.2 Correspondence. Proposed correspondence from the Mayor or other Councilmembers on City stationery should generally be reviewed by the Council in draft form prior to release. On occasion, there are urgent requests from the League of California Cities for correspondence concerning legislation directly affecting municipalities. If the Mayor and the City Manager agree that the League’s position corresponds with that of the Council, the Mayor may send a letter without first obtaining Council approval. City letterhead will be made available for routine correspondence (e.g., thank you notes). Official correspondence (including email) from Councilmembers should be respectful and professional.

5.3 Regional Bodies. The Mayor shall appoint Councilmembers to represent the City of Cupertino on regional bodies subject to ratification by the Council at its next regular meeting. The Mayor should endeavor to provide all Councilmembers a fair opportunity to represent the City. The positions taken by the appointed representatives should be in alignment with the positions that Council has taken on issues that directly impact the City of Cupertino. If an issue arises that is specific to Cupertino and Council has not taken a position, the issue should be discussed by Council prior to taking a formal position at a regional board meeting to assure that it is in alignment with Council’s position.

Council representatives to such various boards shall keep the Council informed of ongoing business through brief oral or written reports to the Council.

Councilmembers shall make a good faith effort to attend all regional meetings that require a quorum of the appointed members to convene a meeting.

Attendance should not be less than 75% of all scheduled meetings. If a Councilmember is unable to attend, they should notify their alternate as far in advance of the meeting as possible so as to allow the alternate to attend.

5.4 Responses to Public. It will be the responsibility of the City Manager to ensure a response is provided to public correspondence for informational requests addressed to the Council. Staff shall respond to all requests for services as 336
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5 appropriate, and the City Manager shall keep Council informed of the City response.

5.5 Ceremonial Correspondence. Proclamations, certificates of appreciation or recognition, and letters of recognition or support are discretionary public announcements directing attention to a local resident, organization, or event.

The Mayor may issue ceremonial proclamations, certificates, and letters as set forth in the City of Cupertino Ceremonial Correspondence Policy (Exhibit A).

5.65.5 Reimbursement. City Councilmembers may be reimbursed for expenses for travel to and lodging at conferences or meetings related to their role as a Councilmember as stated in the Elected Officials’ Compensation Program, as may be amended from time to time (Exhibit BA). Any additional expenses that fall outside the scope of this policy may be reimbursed only if approved by the City Council, at a public meeting before the expenses are incurred. Any request for reimbursement of expenses shall be accompanied by an expense form and receipts to document the expenditure. These documents are public records subject to disclosure under the California Public Records Act. Councilmembers shall be eligible to receive City-issued hardware and software for the conduct of official business pursuant to the Council Technology Policy (Exhibit CB).

5.75.6 Council Training. Any member of the City Council and City commissions or advisory committees formed by the City Council shall receive ethics and anti-harassment training required by state law. New members must receive the training within their first year of service and shall comply with ongoing training requirements imposed by state law. Members shall attend training sessions that are offered locally in the immediate vicinity of Santa Clara County or , by completing online a state-approved public service ethics education program, or through a state-approved training which may be provided at a conference attended by the member. The City Clerk shall keep ethics training records for five years.

5.85.7 Mayor’s Initiative Budget. The Mayor may use the Mayor’s initiative budget established as part of the City Manager’s discretionary fund for projects that the Mayor deems appropriate during the Mayor’s term of office, subject to the requirements of Resolution No. 07-103 (Exhibit DC). The amount of the Mayor’s initiative budget is determined by the City Council. 337
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6 6. Relationship with City Staff

6.1 Incorporation of Municipal Code by Reference. Cupertino Municipal Code Chapter 2.17 (Exhibit ED) governs the City Council’s relationship with the City Manager and their staff under the Council-Manager form of government.

To the extent that the provisions of Chapter 2.17 are not set below, they are incorporated by reference into this Manual.

6.2 Council/Manager Form of Government. Under the Council/Manager form of government, the City Council sets policy direction as the direct representatives of the community with the City Manager providing the professional expertise to manage the organization and carry out the Council's direction. The City Manager is responsible for carrying out the Council's policy direction through the day-to-day management of City functions, including the oversight of City operating departments. Neither individual Councilmembers nor the Council as a whole shall interfere with the City Manager’s performance of the administrative duties conferred upon them in Cupertino Municipal Code section 2.28.040.

6.3 Council-Manager Relations. The City Council and its members shall deal with the administrative services of the City only through the City Manager, except for the purpose of inquiry, and neither the City Council nor any Councilmember shall give orders to any subordinates of the City Manager.

The City Manager shall take instructions from the City Council only when given at a duly held meeting of the City Council, and no individual Councilmember shall give any instructions to the City Manager.

6.4 Individual Councilmember Influence on Staff Decisions Prohibited.

Individual Councilmembers shall not attempt to influence staff decisions, recommendations, workloads, and schedules, and department priorities without prior knowledge and approval of the City Council. If a Councilmember wishes to influence the actions, decisions, recommendations, workloads, work schedules and priorities of staff, that member must prevail upon the City Council to do so as a matter of Council policy.

6.5 Decorum. All Councilmembers and City staff shall treat each other with dignity, courtesy, and respect. In exercising the City Council’s policymaking authority, Councilmembers must often critique, modify, or reject a staff recommendation. While thorough vetting and criticism of staff policy recommendations or decisions is a necessary component of Council’s policymaking role, criticism should focus on the policy recommendations and 338
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7 decisions and should avoid personal attacks. Councilmembers shall refrain from publicly criticizing the general abilities, character, or motivations of any staff member and should share any such concerns privately with the City Manager or City Attorney.

6.6 Councilmember Access to Information. City Councilmembers have free access to the flow of any information related to the operation of the City. The City Manager shall ensure that such information is communicated by staff in full and with candor to the Council. City staff will make every effort to respond in a timely and professional manner to all requests made by individual council members for information or assistance, provided that, in the judgment of the City Manager, the request is not of a magnitude either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council, based on the guidelines set forth in Cupertino Municipal Code section 2.17.043. The City Manager shall place requests that impose a significant workload on staff on the Council agenda for review by the full Council, along with a statement from that Councilmember as to why the information is needed. No Councilmember shall circumvent the City Manager’s direction regarding a request for information by seeking information through a Public Records Act request.

6.7 Authority of City Council. Nothing in this Manual shall limit the City Council’s power to accept, reject, amend, or otherwise guide and direct staff actions, decisions, recommendations, workloads and schedules, department priorities, and the conduct of city business through the office of the City Manager. This power cannot be delegated to individual Councilmembers, nor to committees composed of Councilmembers consisting of less than a quorum of the City Council.

7. Agendas and Staff Reports

7.1 Future Agenda Items. The City Manager, the City Attorney, the Mayor, or any two Councilmembers may request that an item be added to a future agenda for Council action. The City Manager shall provide a quarterly report to Council regarding the status of future agenda items, which may include a request to remove items from the list of future agenda items. Any item may be removed for the future agenda items list by a majority vote of the City Council.

7.2 Preparation of Agenda. The City Clerk shall prepare the agenda in consultation with the City Manager, the Mayor, and the City Attorney. Absent 339
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8 exigent circumstances, an item will be scheduled for Council action no sooner than 14 days after receipt of a request to add the item to the future agenda items list. Any item requiring preparation of a staff report requires City Manager approval or, in case of a report prepared by City Attorney’s Office staff, City Attorney approval, before being added to an agenda. The Mayor, in consultation with the City Manager and the City Clerk, shall determine the order of items on the agenda.

7.3 Agenda Item Descriptions. Each agenda item shall include a brief general description of the matter to be discussed (approximately 20 words in length), including any action that may be taken under the California Environmental Quality Act, and should generally include the recommendation of the City Manager.

7.4 Staff Reports. Staff reports should include the following sections:

1. Subject

2. Recommended Action

2. Reasons for Recommendation

3. Sustainability Impact

4. Fiscal Impact

5. California Environmental Quality Act

7.5 Agenda Publication. Agenda packets for a regular meeting should be published and delivered to Councilmembers no later than the Thursday Wednesday prior to a Tuesday Council meeting. Councilmembers are encouraged to contact staff in advance for answers to questions regarding an agenda packet. Written communications addressed to Council shall be forwarded to Council and made available to members of the public, consistent with the requirements of the Brown Act.

7.6 Supplemental Materials. Supplemental reports and materials received by the City Clerk after the agenda is published but before 12:00 p.m. on the Monday prior to the City Council meeting shall be published and delivered to Councilmembers at 5:00 p.m. on Monday. Supplemental reports and materials received by the City Clerk after 12:00 p.m. on Monday but before 4:00 p.m. on the day of the meeting shall be published and delivered to Councilmembers prior to the Council meeting. Council questions and staff-prepared responses will be included in supplemental materials provided to Council and the public. 340
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9 8. Meeting Procedures

8.1 Meeting Schedule. The City Council conducts its regular meetings on the first and third Tuesdays of the month, except when Council is in recess. At the second regular meeting in January, the City Council will approve the schedule of meetings for the calendar year, which in addition to the regular meeting schedule may include the cancellation of regular meetings and the addition of special meetings and study sessions. This practice does not, however, preclude the Mayor or a majority of the members of the City Council from calling additional meetings pursuant to the Brown Act.

8.2 Seating of Councilmembers. For meetings held in Council Chambers at Community Hall, the Mayor shall be seated at the center of the dais and the Vice Mayor shall be seated immediately to the Mayor’s left. The remaining Councilmembers shall be seated in order of seniority as follows: (1) the seat immediately to the right of the Mayor; (2) the last seat on left side of the dais; (3) the last seat on the right side of the dais. Seniority shall be based on the number of consecutive years of service on the City Council. If two members have equal seniority based on service, the member with the higher vote count in their most recent election is considered to have higher seniority.

8.38.2 Rules of Order. City Council meetings shall be governed by Rosenberg’s Rules of Order except as otherwise provided by this Manual. Unless otherwise required by state law or City ordinance, decisions of the Council shall be made by a majority of members present and voting. The Mayor may impose additional reasonable procedural rules not inconsistent with Rosenberg’s Rules of Order and the provisions of this Manual, unless objected to by a majority of Councilmembers present.

8.48.3 Order of Business. The order of agenda items for regular Council meetings is as follows:

1. Call to Order

2. Pledge of Allegiance

3. Roll Call

4. Closed Session Report

5. Ceremonial Items

6. Oral Communications (public comment on non-agenda matters)

7. Consent Calendar

8. Public Hearings

9. Action Calendar

10. Council Reports and Comments
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10 11. City Manager Report

12. Informational Items

13. Adjournment

1. Call to Order

2. Pledge of Allegiance

3. Roll Call

4. Closed Session Report

5. Ceremonial Items

6. Postponements and Orders of the Day

7. Oral Communications (public comment on non‐agenda matters)

8. Consent Calendar

9. Public Hearings

10. Action Calendar

11. Items Removed from the Consent Calendar

12. Council Reports and Comments

13. City Manager Report

14. Oral Communications (continued)

15. Informational Items

16. Council and Staff Comments and the Future Agenda Items

17. Adjournment

Oral communications shall be limited to 30 minutes. Additional speakers wishing to comment on non-agenda items may be given time to speak at the end of the agenda, after the City Manager’s report. In the absence of an objection made by a majority of Councilmembers present and voting, the Mayor may modify the order of business to facilitate the fair and efficient conduct of Council meetings.

8.58.4 Consent Calendar.

8.5.18.4.1 Adding Item to Consent Calendar. The Mayor, the City Manager, the City Attorney, or the City Clerk may recommend that items appearing on the agenda be placed on the consent calendar for action by the City Council. In addition, any item may be placed on the consent calendar by a majority vote of the City Council. All items placed on the consent calendar shall appear together on the agenda with the recommendation as to the action to be taken by the City Council with respect to such item. Upon the motion of any member of the City Council, all items placed upon the consent calendar may be acted upon together, and each shall be deemed to have received the action 342
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11 recommended. Items may be removed from the consent calendar only by a member of the City Council.

8.5.28.4.2 Removing Item from Consent Calendar. Items may be removed from the consent calendar only by a member of the City Council. Any member of the City Council who would like to remove any item from the consent calendar shall notify the City Manager and the City Clerk prior to the meeting; provided, however, each Councilmember may remove one item from the consent calendar without providing notice before the Council meeting begins. Although members of the City Council are encouraged to ask questions and share concerns about the agenda item with staff before the meeting, they are not required to do so. Items removed from the consent calendar shall be placed at the end of the agenda for consideration.

8.68.5 Public Comment. An opportunity for public comment shall be provided for the consent calendar, each other agenda item under consideration, and, during regular meetings, on any matter that is within the subject matter jurisdiction of the City Council. The Mayor may consolidate public comment for related agenda items, subject to overruling by a majority vote of the Council. Non-agenda matters (including Council and staff reports and informational items) may be addressed by the public during oral communications. Members of the public wishing to speak regarding an item shall submit a request to comment to the Clerk (“blue card”) or, where applicable, raise their hand in Zoom within five nine minutes of the time the Mayor opens public comment or prior to the close of public comment on the item, whichever is earlier. Each individual speaker will ordinarily have up to three minutes to address the Council. If a speaker representing five or more members of the public in attendance and wishing to comment on the item but electing not to speak, the speaker may have up to 10 minutes to address the Council. Consolidation of time among speakers is not otherwise allowed. No member of the public may be allocated more than a combined total of 10 minutes to speak during a Council meeting. If a large number of speakers wish to address Council on an item, the Mayor may reduce the time allotted to each speaker consistent with the Brown Act. Twice the speaking time will be provided to any member of the public who uses a translator.

8.78.6 Communications with Members of the Public. The City Council may ask questions of speakers providing public comment but should avoid an extended discussion with members of the public during meetings. Additionally, when a 343
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12 member of the public provides comments regarding a matter that is not on the agenda, Councilmembers may (1) refer the speaker to staff; (2) refer the speaker to appropriate reference material; (3) request that staff report back at a future meeting; or (4) request that staff place the item on a future agenda.

Councilmembers should not otherwise respond to or comment on an item of business that is not on the agenda. City staff should generally avoid responding to comments or questions from members of the public during Council meetings, although the City Manager or City Attorney may offer to arrange a time to discuss the subject matter of public comments with members of the public subsequent to the Council meeting.

8.88.7 Conduct of Meetings

8.8.18.7.1 Councilmembers. Members of the City Council value and recognize the importance of the trust invested in them by the public to accomplish the business of the City. Councilmembers shall accord courtesy to each other, to City employees, and to members of the public appearing before the City Council.

8.8.28.7.2 City Employees. City staff shall observe the same rules of decorum applicable to the City Council. City staff shall act at all times in a businesslike and professional manner towards Councilmembers and members of the public.

8.8.38.7.3 Members of the Public. Members of the public attending City Council meetings are encouraged to treat Councilmembers, City staff, and other members of the public with the same courtesy that Councilmembers and City staff must accord to them. Any members of the public who engages in conduct that disrupts a City Council meeting shall be removed from the meeting. Nothing in this Manual or any rules of conduct that may be adopted by the City Council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the City, or of the acts or omissions of the City Council, City advisory bodies, or City staff.

8.98.8 Discussion and Deliberation

8.9.18.8.1 Ex Parte Contacts. Councilmembers shall disclose any ex parte contacts prior to deliberation on a quasi-adjudicative matter ex parte communications prior to deliberation on a quasi-judicial matter. A quasi- judicial matter is typically a hearing in which the City Council hears 344
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13 evidence and makes findings of fact to reach a conclusion based on the applicable law. An ex parte communication occurs when a Councilmember hearing a quasi-judicial matter communicates directly or indirectly with any person or party in connection with a matter before the Council, without notice and the opportunity for all parties to participate.

8.9.28.8.2 Relevance. All discussion must be relevant to the issue before the City Council. A Councilmember is given the floor only for the purpose of discussing the pending matter; discussion which departs from the item agendized for discussion is out of order. Councilmembers should avoid repetition and shall not discuss matters that are not on the agenda.

Arguments for or against a measure should be stated as concisely as possible.

8.9.38.8.3 Council Questions and Deliberations. Councilmembers may obtain the floor by seeking recognition from the Mayor. Following presentations to Council on an agenda item, Councilmembers shall each be given 5 minutes to ask questions of any presenter. The Mayor may allow additional time for questions where appropriate. Following public comment, the Mayor may request that a motion be made and seconded.

After the motion has been stated to the Council and seconded, any member of the Council has a right to discuss the motion after obtaining the floor. A member who has been recognized should limit their time to 5 minutes. Councilmembers may obtain the floor by seeking recognition from the Mayor. Following presentations to Council on an agenda item, Councilmembers shall each be given five minutes to ask questions of any presenter. The Mayor may allow additional time for questions where appropriate. Following public comment, the Mayor may request that a motion be made and seconded. After the motion has been stated to the Council and seconded, any member of the Council has a right to discuss the motion after obtaining the floor. A member who has been recognized shall limit their time to five minutes. The Mayor may allow additional time for questions where appropriate. This rule shall displace any conflicting rule in the City’s adopted rules of procedure.

8.9.48.8.4 Opportunity for Equal Participation. It is the policy of the Council to encourage the full, fair participation of all members of the Council in discussions and deliberations. The Mayor may impose reasonable limits on the time any Councilmember is permitted to speak to advance this policy. In addition, all Councilmembers wishing to be recognized should 345
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14 be given an opportunity to speak before any member is allowed to speak a second time.

8.9.58.8.5 Civility. While it is appropriate to vigorously debate a motion, its nature, or its consequences, Councilmembers shall avoid attacks on the motives, character, or personality of other Councilmembers, City staff, and members of the public. The Mayor shall rule out of order any Councilmember who engages in such attacks.

8.9.68.8.6 Role of the Mayor. The Mayor has the responsibility for controlling and expediting the discussion of an agenda item. It is the duty of the Mayor to keep the subject clearly before the Councilmembers, to rule out irrelevant discussion, and to ensure civil discussion among Councilmembers.

8.108.9 Meeting Length. Meetings of the City Council shall adjourn by 11:00 p.m. unless the time of adjournment is extended by a vote of a majority of the City Council. Discussion of an agenda item shall not begin after 10:30 p.m. Any motion to extend the meeting beyond 11:00 p.m. shall include a list of specific agenda items to be discussed or approved and shall specify the order these items shall be considered. If a meeting continues past 11:00 p.m., it shall end at 11:30 p.m. All meetings shall be adjourned at 11:30 p.m. unless by a 2/3 vote of a majority of the City Council suspends this rule and votes affirmatively to extend the meeting past 11:30 p.m. Following the adjournment of the meeting, any remaining items on the agenda shall be continued to the next regular meeting of the City Council.

8.118.10 Public Hearing Procedures. The order of proceeding where there is a public hearing item (non-appeal items) before the City Council shall be as follows:

1. Open Public Hearing

2. Staff Report (preferably ≤ 10 minutes)

3. Applicant’s presentation (where applicable) (preferably ≤ 8 minutes)

4. Questions from the Council

5. Public comment

6. Applicant’s response to public comment (where applicable) (preferably 2 minutes)

7. Close Public Hearing

8. City Council discussion and vote
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15 Where the public hearing involves an appeal of a decision to the City Council, the order of proceeding shall be as follows:

1. Open Public Hearing

2. Staff Report (preferably ≤ 10 minutes)

3. Appellant’s statement (preferably ≤ 8 minutes)

4. Applicant’s statement (where applicable) (preferably ≤ 8 minutes)

5. Questions from the Council

6. Public comment

7. Applicant’s response to public comment (where applicable) (preferably 2 minutes)

8. Appellant’s response to public comment (preferably 2 minutes)

9. Close Public Hearing

10. City Council discussion and vote

8.128.11 City Council Recess Period. The City Council recess period shall begin the first Tuesday in August at 12:00 a.m. and end the Tuesday following Labor Day at 12:00 a.m. During any recess period, the City Manager is authorized to take such ministerial actions for matters of operational urgency, including such emergency actions as are necessary for the immediate preservation of the public peace, health, or safety, as would normally be taken by the City Council during the period of recess, except for those duties specifically reserved to the Council by law. This authority extends throughout the period of recess established by the City Council and includes the authority to execute agreements and make expenditures necessary for the exigent operational matters. The City Manager shall make a full and complete report to the City Council at its first regularly scheduled meeting following the period of recess of actions taken by the City Manager pursuant to this section, at which time the City Council may make such findings as may be required to ratify the actions of the City Manager. Nothing in this Section prevents the City Council from calling a special meeting during the recess period.

9. Closed Sessions
A closed session may be held at any regular or special meeting for any purpose authorized by the Brown Act. The City Attorney will schedule closed session meetings in consultation with the Mayor and the City Manager. Public comment shall be received in open session prior to a closed session. To ensure strict compliance with the Brown Act, the City Attorney or the City Attorney’s designee shall report out in public session any reportable action taken during closed session 347
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16 and any other information from closed session authorized to be disclosed based on a majority vote of the City Council.

10. Enforcement of Rules; Suspension of Rules
The City Council may enforce repeated or serious violations of the rules set forth in this Manual through a censure action placed on a Council agenda. Nothing in this Manual shall be cited to invalidate a properly noticed and acted upon action of the City Council. Any rule set forth in this Manual may be suspended by a 2/3 three votes of the Council.
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RESOLUTION NO. 23-________

A RESOLUTION OF THE CUPERTINO CITY COUNCIL ADOPTING

CUPERTINO CITY COUNCIL PROCEDURES MANUAL

WHEREAS, the Cupertino City Counc il has identified a need to adopt policies and procedures governing the conduct of Council meetings and other Council activities; and

WHEREAS, on February 7, 2023, th e City Council considered proposed policies and procedures at a duly noticed regular meeting of the City Council.

NOW, THEREFORE, BE IT RESOLVED that:

1. The City Council hereby adopts the Cupertino City Council Procedures Manual attached hereto as Exhibit A. The Procedures Manual shall be effective on February 8, 2023.

2. Resolution No. 19-062 and any other proc edures, policies, or rules that are inconsistent with the Council Procedures adopted herein are hereby repealed and rescinded.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 7
th day of February, 2023, by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

________
Hung Wei, Mayor
City of Cupertino

________________________
Date
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Resolution No. __________________

Page 2 ends

ATTEST:

________
Kirsten Squarcia, City Clerk

________________________
Date

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EXHIBIT A
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1 City of Cupertino
City Council Procedures
Manual

Attachments:

Ex. A – Elected Officials’
Compensation Program
Ex. B – Council Technology Policy
Ex. C – Resolution No. 07-103
Ex. D – Municipal Code Chapter

2.17 Effective Date:

February 8, 2023
Responsible Departments:

City Manager’s Office
Related Policies & Notes:

See Exhibits A–D.

1. Introduction

1.1 Purpose. The purpose of this Manual is to promote communication, understanding, fairness, and trust among the members of the City Council, City staff, and members of the public concerning their roles, responsibilities, and expectations for management of the business of the City of Cupertino.

1.2 Values. Courtesy and respect for individual points of view should be practiced at all times. All Councilmembers shall respect each other’s right to disagree. All Councilmembers shall act with decorum and courtesy.

1.3 Brown Act. All actions of the City Council and City commissions, committees, and subcommittees shall comply with the Ralph M. Brown Act.

2. Selection of the Mayor and Vice Mayor

2.1 Selection of Mayor and Vice Mayor. The Mayor and Vice Mayor shall be selected annually at a special meeting on the second Thursday of December.

The Mayor and Vice Mayor shall not serve consecutive terms; provided, however, this provision shall not prevent the Vice Mayor from succeeding to the office of Mayor.

2.2 Removal of Mayor and Vice Mayor. The Mayor or Vice Mayor may be removed from office, for cause, by a 4/5ths affirmative vote of the members.

Removal for cause shall mean removal of a Councilmember because of such member’s (a) willful and continued failure substantially to perform their duties, (b) conviction for, or guilty plea to, a felony, or a crime involving moral 352
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2 turpitude, (c) abuse of illegal drugs or other controlled substances or habitual intoxication, or (d) other illegal activities. The removal should proceed with a formal warning, which states with proven evidence of the member’s failure to perform their duties and proposed corrective measures. The Mayor or Vice Mayor must be advised of the proposed cause for removal at least 72 hours before any action is taken. If the Mayor is removed from office, the Vice Mayor shall become Mayor. If either officer is removed from office, the Vice Mayor shall be appointed from among the remaining three Councilmembers.

3. Councilmember Committees and Subcommittees

3.1 Appointment. The Mayor shall appoint Councilmembers to standing and ad hoc committees and subcommittees established by the City Council, subject to ratification by the Council at its next regular meeting. It will be the responsibility of the committees and subcommittees to inform and submit recommendations to the Council.

3.2 Instructions and Expectations. The Council shall make certain that all Council committees and subcommittees are properly instructed in their assigned scope of work and responsibilities. The committee’s or subcommittee’s jurisdiction shall be defined in writing and approved by a majority of the City Council. All Council committees and subcommittees having a continuing or indefinite jurisdiction shall be subject to the Brown Act.

3.3 Reporting. Council committee and subcommittee members are to keep the Council informed of the work and progress of their committee or subcommittee. These reports or minutes shall be made in writing whenever a recommendation is made to the Council.
4 Other City Commissions and Committees

4.1 Responsibility. The Council will make appointments to City’s commissions and committees. Qualifications to serve on commissions and committees shall be set forth in the Municipal Code or by a resolution or motion of the Council that is not inconsistent with the Municipal Code. Appointment of Councilmembers to City committees shall be governed by the procedures in Section 3.

4.2 Attendance at Council Meetings. At least one commission member, preferably the Chair or Vice Chair, must attend City Council meetings when the commission has an item of interest on the Council agenda, so as to be available 353
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3 to answer Council questions. Staff shall provide the commission with advance notice for the commission to select a member to attend the City Council meeting.

4.3 Performance Expectations. The Council shall make certain that all commissions and committees are properly instructed on their responsibilities and performance expectations. This will include the issuance of a Council- approved Commission and Committee Handbook and a mandatory annual training session for all Commission and Committee members.

4.4 Appointment. Commission and Committee applicants will be interviewed by the Council before being voted on by the Council in a noticed public meeting.

Applicants are considered by motion and appointed by a majority vote of Council. Two members of an immediate family or persons residing in the same household shall not be allowed to serve simultaneously on the same commission or committee. Immediate family members residing in the same household as a Councilmember are not eligible for appointment to any commission or committee. Former Councilmembers are not eligible for appointment to any commission or committee within four years of having served on the City Council.

4.5 Removal. The City Clerk shall remove commission members for failure to comply with attendance policies adopted in the Commissioner’s Handbook.

Council retains full discretion to review commission and committee member performance and may take disciplinary action as needed, including removal from the commission or committee.

4.6 Undue Influence on Commissioners. Councilmembers should not attempt to influence or publicly criticize commission recommendations or to influence or lobby individual commission members on any item under their consideration.

It is important for commissions to be able to make objective recommendations to the City Council on items before them. Councilmembers that attempt to influence commission positions on an item may prejudice or hinder their role in reviewing the commission’s recommendation as a member of the City Council.

Individual Councilmembers shall have the right to attend meetings of Cupertino commissions and other Cupertino governmental bodies but shall refrain from speaking or becoming involved in deliberations. 354
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4 5. Administrative Matters

5.1 Attendance. City Councilmembers acknowledge that attendance at lawful meetings of the City Council is part of their official duty. Councilmembers shall make a good faith effort to attend all such meetings. Council members shall notify the Mayor or the City Clerk if they will be absent from a meeting.

Council attendance will be noted in the agenda of the next regular meeting and thereafter for that calendar year, if five or more regular meetings are missed.

5.2 Correspondence. Proposed correspondence from the Mayor or other Councilmembers on City stationery should generally be reviewed by the Council in draft form prior to release. On occasion, there are urgent requests from the League of California Cities for correspondence concerning legislation directly affecting municipalities. If the Mayor and the City Manager agree that the League’s position corresponds with that of the Council, the Mayor may send a letter without first obtaining Council approval. City letterhead will be made available for routine correspondence (e.g., thank you notes). Official correspondence (including email) from Councilmembers should be respectful and professional.

5.3 Regional Bodies. The Mayor shall appoint Councilmembers to represent the City of Cupertino on regional bodies subject to ratification by the Council at its next regular meeting. The Mayor should endeavor to provide all Councilmembers a fair opportunity to represent the City. The positions taken by the appointed representatives should be in alignment with the positions that Council has taken on issues that directly impact the City of Cupertino. If an issue arises that is specific to Cupertino and Council has not taken a position, the issue should be discussed by Council prior to taking a formal position at a regional board meeting to assure that it is in alignment with Council’s position.

Council representatives to such various boards shall keep the Council informed of ongoing business through brief oral or written reports to the Council.

Councilmembers shall make a good faith effort to attend all regional meetings that require a quorum of the appointed members to convene a meeting.

Attendance should not be less than 75% of all scheduled meetings. If a Councilmember is unable to attend, they should notify their alternate as far in advance of the meeting as possible so as to allow the alternate to attend.

5.4 Responses to Public. It will be the responsibility of the City Manager to ensure a response is provided to public correspondence for informational requests addressed to the Council. Staff shall respond to all requests for services as 355
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5 appropriate, and the City Manager shall keep Council informed of the City response.

5.5 Reimbursement. City Councilmembers may be reimbursed for expenses for travel to and lodging at conferences or meetings related to their role as a Councilmember as stated in the Elected Officials’ Compensation Program, as may be amended from time to time (Exhibit A). Any additional expenses that fall outside the scope of this policy may be reimbursed only if approved by the City Council, at a public meeting before the expenses are incurred. Any request for reimbursement of expenses shall be accompanied by an expense form and receipts to document the expenditure. These documents are public records subject to disclosure under the California Public Records Act. Councilmembers shall be eligible to receive City-issued hardware and software for the conduct of official business pursuant to the Council Technology Policy (Exhibit B).

5.6 Council Training. Any member of the City Council and City commissions or advisory committees formed by the City Council shall receive ethics and anti- harassment training required by state law. New members must receive the training within their first year of service and shall comply with ongoing training requirements imposed by state law. Members shall attend training sessions that are offered locally in the immediate vicinity of Santa Clara County, by completing online a state-approved public service ethics education program, or through a state-approved training which may be provided at a conference attended by the member. The City Clerk shall keep ethics training records for five years.

5.7 Mayor’s Initiative Budget. The Mayor may use the Mayor’s initiative budget established as part of the City Manager’s discretionary fund for projects that the Mayor deems appropriate during the Mayor’s term of office, subject to the requirements of Resolution No. 07-103 (Exhibit C). The amount of the Mayor’s initiative budget is determined by the City Council.

6. Relationship with City Staff

6.1 Incorporation of Municipal Code by Reference. Cupertino Municipal Code Chapter 2.17 (Exhibit D) governs the City Council’s relationship with the City Manager and their staff under the Council-Manager form of government. To the extent that the provisions of Chapter 2.17 are not set below, they are incorporated by reference into this Manual.
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6 6.2 Council/Manager Form of Government. Under the Council/Manager form of government, the City Council sets policy direction as the direct representatives of the community with the City Manager providing the professional expertise to manage the organization and carry out the Council's direction. The City Manager is responsible for carrying out the Council's policy direction through the day-to-day management of City functions, including the oversight of City operating departments. Neither individual Councilmembers nor the Council as a whole shall interfere with the City Manager’s performance of the administrative duties conferred upon them in Cupertino Municipal Code section 2.28.040.

6.3 Council-Manager Relations. The City Council and its members shall deal with the administrative services of the City only through the City Manager, except for the purpose of inquiry, and neither the City Council nor any Councilmember shall give orders to any subordinates of the City Manager.

The City Manager shall take instructions from the City Council only when given at a duly held meeting of the City Council, and no individual Councilmember shall give any instructions to the City Manager.

6.4 Individual Councilmember Influence on Staff Decisions Prohibited.

Individual Councilmembers shall not attempt to influence staff decisions, recommendations, workloads, and schedules, and department priorities without prior knowledge and approval of the City Council. If a Councilmember wishes to influence the actions, decisions, recommendations, workloads, work schedules and priorities of staff, that member must prevail upon the City Council to do so as a matter of Council policy.

6.5 Decorum. All Councilmembers and City staff shall treat each other with dignity, courtesy, and respect. In exercising the City Council’s policymaking authority, Councilmembers must often critique, modify, or reject a staff recommendation. While thorough vetting and criticism of staff policy recommendations or decisions is a necessary component of Council’s policymaking role, criticism should focus on the policy recommendations and decisions and should avoid personal attacks. Councilmembers shall refrain from publicly criticizing the general abilities, character, or motivations of any staff member and should share any such concerns privately with the City Manager or City Attorney.

6.6 Councilmember Access to Information. City Councilmembers have free access to the flow of any information related to the operation of the City. The City Manager shall ensure that such information is communicated by staff in 357
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7 full and with candor to the Council. City staff will make every effort to respond in a timely and professional manner to all requests made by individual council members for information or assistance, provided that, in the judgment of the City Manager, the request is not of a magnitude either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council, based on the guidelines set forth in Cupertino Municipal Code section 2.17.043. The City Manager shall place requests that impose a significant workload on staff on the Council agenda for review by the full Council, along with a statement from that Councilmember as to why the information is needed. No Councilmember shall circumvent the City Manager’s direction regarding a request for information by seeking information through a Public Records Act request.

6.7 Authority of City Council. Nothing in this Manual shall limit the City Council’s power to accept, reject, amend, or otherwise guide and direct staff actions, decisions, recommendations, workloads and schedules, department priorities, and the conduct of city business through the office of the City Manager. This power cannot be delegated to individual Councilmembers, nor to committees composed of Councilmembers consisting of less than a quorum of the City Council.

7. Agendas and Staff Reports

7.1 Future Agenda Items. The City Manager, the City Attorney, the Mayor, or any two Councilmembers may request that an item be added to a future agenda for Council action. The City Manager shall provide a quarterly report to Council regarding the status of future agenda items, which may include a request to remove items from the list of future agenda items. Any item may be removed for the future agenda items list by a majority vote of the City Council.

7.2 Preparation of Agenda. The City Clerk shall prepare the agenda in consultation with the City Manager, the Mayor, and the City Attorney. Absent exigent circumstances, an item will be scheduled for Council action no sooner than 14 days after receipt of a request to add the item to the future agenda items list. Any item requiring preparation of a staff report requires City Manager approval or, in case of a report prepared by City Attorney’s Office staff, City Attorney approval, before being added to an agenda. The Mayor, in consultation with the City Manager and the City Clerk, shall determine the order of items on the agenda.
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8 7.3 Agenda Item Descriptions. Each agenda item shall include a brief general description of the matter to be discussed (approximately 20 words in length), including any action that may be taken under the California Environmental Quality Act, and should generally include the recommendation of the City Manager.

7.4 Staff Reports. Staff reports should include the following sections:

1. Subject

2. Recommended Action

2. Reasons for Recommendation

3. Sustainability Impact

4. Fiscal Impact

5. California Environmental Quality Act

7.5 Agenda Publication. Agenda packets for a regular meeting should be published and delivered to Councilmembers no later than the Wednesday prior to a Tuesday Council meeting. Councilmembers are encouraged to contact staff in advance for answers to questions regarding an agenda packet. Written communications addressed to Council shall be forwarded to Council and made available to members of the public, consistent with the requirements of the Brown Act.

7.6 Supplemental Materials. Supplemental reports and materials received by the City Clerk after the agenda is published but before 12:00 p.m. on the Monday prior to the City Council meeting shall be published and delivered to Councilmembers at 5:00 p.m. on Monday. Supplemental reports and materials received by the City Clerk after 12:00 p.m. on Monday but before 4:00 p.m. on the day of the meeting shall be published and delivered to Councilmembers prior to the Council meeting. Council questions and staff-prepared responses will be included in supplemental materials provided to Council and the public.

8. Meeting Procedures

8.1 Meeting Schedule. The City Council conducts its regular meetings on the first and third Tuesdays of the month, except when Council is in recess. At the second regular meeting in January, the City Council will approve the schedule of meetings for the calendar year, which in addition to the regular meeting schedule may include the cancellation of regular meetings and the addition of special meetings and study sessions. This practice does not, however, preclude the Mayor or a majority of the members of the City Council from calling additional meetings pursuant to the Brown Act.
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9 8.2 Rules of Order. City Council meetings shall be governed by Rosenberg’s Rules of Order except as otherwise provided by this Manual. Unless otherwise required by state law or City ordinance, decisions of the Council shall be made by a majority of members present and voting. The Mayor may impose additional reasonable procedural rules not inconsistent with Rosenberg’s Rules of Order and the provisions of this Manual, unless objected to by a majority of Councilmembers present.

8.3 Order of Business. The order of agenda items for regular Council meetings is as follows:

1. Call to Order

2. Pledge of Allegiance

3. Roll Call

4. Closed Session Report

5. Ceremonial Items

6. Postponements and Orders of the Day

7. Oral Communications (public comment on non‐agenda matters)

8. Consent Calendar

9. Public Hearings

10. Action Calendar

11. Items Removed from the Consent Calendar

12. Council Reports and Comments

13. City Manager Report

14. Oral Communications (continued)

15. Informational Items

16. Council and Staff Comments and the Future Agenda Items

17. Adjournment

Oral communications shall be limited to 30 minutes. Additional speakers wishing to comment on non-agenda items may be given time to speak at the end of the agenda, after the City Manager’s report. In the absence of an objection made by a majority of Councilmembers present and voting, the Mayor may modify the order of business to facilitate the fair and efficient conduct of Council meetings.

8.4 Consent Calendar.

8.4.1 Adding Item to Consent Calendar. The Mayor, the City Manager, the City Attorney, or the City Clerk may recommend that items appearing on the agenda be placed on the consent calendar for action by the City 360
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10 Council. All items placed on the consent calendar shall appear together on the agenda with the recommendation as to the action to be taken by the City Council with respect to such item. Upon the motion of any member of the City Council, all items placed upon the consent calendar may be acted upon together, and each shall be deemed to have received the action recommended.

8.4.2 Removing Item from Consent Calendar. Items may be removed from the consent calendar only by a member of the City Council. Any member of the City Council who would like to remove any item from the consent calendar shall notify the City Manager and the City Clerk prior to the meeting; provided, however, each Councilmember may remove one item from the consent calendar without providing notice before the Council meeting begins. Although members of the City Council are encouraged to ask questions and share concerns about the agenda item with staff before the meeting, they are not required to do so. Items removed from the consent calendar shall be placed at the end of the agenda for consideration.

8.5 Public Comment. An opportunity for public comment shall be provided for the consent calendar, each other agenda item under consideration, and, during regular meetings, on any matter that is within the subject matter jurisdiction of the City Council. The Mayor may consolidate public comment for related agenda items, subject to overruling by a majority vote of the Council. Non- agenda matters (including Council and staff reports and informational items) may be addressed by the public during oral communications. Members of the public wishing to speak regarding an item shall submit a request to comment to the Clerk (“blue card”) or, where applicable, raise their hand in Zoom within nine minutes of the time the Mayor opens public comment or prior to the close of public comment on the item, whichever is earlier. Each individual speaker will ordinarily have up to three minutes to address the Council. If a speaker representing five or more members of the public in attendance and wishing to comment on the item but electing not to speak, the speaker may have up to 10 minutes to address the Council. Consolidation of time among speakers is not otherwise allowed. If a large number of speakers wish to address Council on an item, the Mayor may reduce the time allotted to each speaker consistent with the Brown Act. Twice the speaking time will be provided to any member of the public who uses a translator.
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11 8.6 Communications with Members of the Public. The City Council may ask questions of speakers providing public comment but should avoid an extended discussion with members of the public during meetings. Additionally, when a member of the public provides comments regarding a matter that is not on the agenda, Councilmembers may (1) refer the speaker to staff; (2) refer the speaker to appropriate reference material; (3) request that staff report back at a future meeting; or (4) request that staff place the item on a future agenda.

Councilmembers should not otherwise respond to or comment on an item of business that is not on the agenda. City staff should generally avoid responding to comments or questions from members of the public during Council meetings, although the City Manager or City Attorney may offer to arrange a time to discuss the subject matter of public comments with members of the public subsequent to the Council meeting.

8.7 Conduct of Meetings

8.7.1 Councilmembers. Members of the City Council value and recognize the importance of the trust invested in them by the public to accomplish the business of the City. Councilmembers shall accord courtesy to each other, to City employees, and to members of the public appearing before the City Council.

8.7.2 City Employees. City staff shall observe the same rules of decorum applicable to the City Council. City staff shall act at all times in a businesslike and professional manner towards Councilmembers and members of the public.

8.7.3 Members of the Public. Members of the public attending City Council meetings are encouraged to treat Councilmembers, City staff, and other members of the public with the same courtesy that Councilmembers and City staff must accord to them. Any members of the public who engages in conduct that disrupts a City Council meeting shall be removed from the meeting. Nothing in this Manual or any rules of conduct that may be adopted by the City Council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the City, or of the acts or omissions of the City Council, City advisory bodies, or City staff.

8.8 Discussion and Deliberation

8.8.1 Ex Parte Contacts. Councilmembers shall disclose any ex parte communications prior to deliberation on a quasi-judicial matter. A quasi- 362
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12 judicial matter is typically a hearing in which the City Council hears evidence and makes findings of fact to reach a conclusion based on the applicable law. An ex parte communication occurs when a Councilmember hearing a quasi-judicial matter communicates directly or indirectly with any person or party in connection with a matter before the Council, without notice and the opportunity for all parties to participate.

8.8.2 Relevance. All discussion must be relevant to the issue before the City Council. A Councilmember is given the floor only for the purpose of discussing the pending matter; discussion which departs from the item agendized for discussion is out of order. Councilmembers should avoid repetition and shall not discuss matters that are not on the agenda.

Arguments for or against a measure should be stated as concisely as possible.

8.8.3 Council Questions and Deliberations. Councilmembers may obtain the floor by seeking recognition from the Mayor. Following presentations to Council on an agenda item, Councilmembers shall each be given five minutes to ask questions of any presenter. The Mayor may allow additional time for questions where appropriate. Following public comment, the Mayor may request that a motion be made and seconded.

After the motion has been stated to the Council and seconded, any member of the Council has a right to discuss the motion after obtaining the floor. A member who has been recognized shall limit their time to five minutes. The Mayor may allow additional time for questions where appropriate. This rule shall displace any conflicting rule in the City’s adopted rules of procedure.

8.8.4 Opportunity for Equal Participation. It is the policy of the Council to encourage the full, fair participation of all members of the Council in discussions and deliberations. The Mayor may impose reasonable limits on the time any Councilmember is permitted to speak to advance this policy. In addition, all Councilmembers wishing to be recognized should be given an opportunity to speak before any member is allowed to speak a second time.

8.8.5 Civility. While it is appropriate to vigorously debate a motion, its nature, or its consequences, Councilmembers shall avoid attacks on the motives, character, or personality of other Councilmembers, City staff, and members of the public. The Mayor shall rule out of order any Councilmember who engages in such attacks.
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13 8.8.6 Role of the Mayor. The Mayor has the responsibility for controlling and expediting the discussion of an agenda item. It is the duty of the Mayor to keep the subject clearly before the Councilmembers, to rule out irrelevant discussion, and to ensure civil discussion among Councilmembers.

8.9 Meeting Length. Meetings of the City Council shall adjourn by 11:00 p.m. unless the time of adjournment is extended by a vote of a majority of the City Council. Discussion of an agenda item shall not begin after 10:30 p.m. Any motion to extend the meeting beyond 11:00 p.m. shall include a list of specific agenda items to be discussed or approved and shall specify the order these items shall be considered. If a meeting continues past 11:00 p.m., it shall end at 11:30 p.m. All meetings shall be adjourned at 11:30 p.m. unless by a vote of a majority of the City Council suspends this rule and votes affirmatively to extend the meeting past 11:30 p.m. Following the adjournment of the meeting, any remaining items on the agenda shall be continued to the next regular meeting of the City Council.

8.10 Public Hearing Procedures. The order of proceeding where there is a public hearing item (non-appeal items) before the City Council shall be as follows:

1. Open Public Hearing

2. Staff Report (preferably ≤ 10 minutes)

3. Applicant’s presentation (where applicable) (preferably ≤ 8 minutes)

4. Questions from the Council

5. Public comment

6. Applicant’s response to public comment (where applicable) (preferably 2 minutes)

7. Close Public Hearing

8. City Council discussion and vote
Where the public hearing involves an appeal of a decision to the City Council, the order of proceeding shall be as follows:

1. Open Public Hearing

2. Staff Report (preferably ≤ 10 minutes)

3. Appellant’s statement (preferably ≤ 8 minutes)

4. Applicant’s statement (where applicable) (preferably ≤ 8 minutes)

5. Questions from the Council

6. Public comment

7. Applicant’s response to public comment (where applicable) (preferably 2 minutes)

8. Appellant’s response to public comment (preferably 2 minutes) 364
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14 9. Close Public Hearing

10. City Council discussion and vote

8.11 City Council Recess Period. The City Council recess period shall begin the first Tuesday in August at 12:00 a.m. and end the Tuesday following Labor Day at 12:00 a.m. During any recess period, the City Manager is authorized to take such ministerial actions for matters of operational urgency, including such emergency actions as are necessary for the immediate preservation of the public peace, health, or safety, as would normally be taken by the City Council during the period of recess, except for those duties specifically reserved to the Council by law. This authority extends throughout the period of recess established by the City Council and includes the authority to execute agreements and make expenditures necessary for the exigent operational matters. The City Manager shall make a full and complete report to the City Council at its first regularly scheduled meeting following the period of recess of actions taken by the City Manager pursuant to this section, at which time the City Council may make such findings as may be required to ratify the actions of the City Manager. Nothing in this Section prevents the City Council from calling a special meeting during the recess period.

9. Closed Sessions
A closed session may be held at any regular or special meeting for any purpose authorized by the Brown Act. The City Attorney will schedule closed session meetings in consultation with the Mayor and the City Manager. Public comment shall be received in open session prior to a closed session. To ensure strict compliance with the Brown Act, the City Attorney or the City Attorney’s designee shall report out in public session any reportable action taken during closed session and any other information from closed session authorized to be disclosed based on a majority vote of the City Council.

10. Enforcement of Rules; Suspension of Rules
The City Council may enforce repeated or serious violations of the rules set forth in this Manual through a censure action placed on a Council agenda. Nothing in this Manual shall be cited to invalidate a properly noticed and acted upon action of the City Council. Any rule set forth in this Manual may be suspended by three votes of the Council.
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1 EXHIBIT A
City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 1

PROGRAM PURPOSE AND DEFINITIONS FOR ELIGIBILITY
It is City of Cupertino policy that those certain persons holding positions hereinafter defined and designated as elected official positions shall be eligible for participation under the Elected Officials Compensation Program as hereby adopted by action of the City Council and as same may be amended or as otherwise modified from time to time.

Eligibility for inclusion with this Compensation program is limited to persons holding positions as elected officials. These are designated by the voters and may be modified as circumstances warrant.

The pos
ition in the following classification has been designated as elected official.

ELECTED OFFICIAL CLASSIFICATIONS:

Classification Title City
Council Member
Adopted by Action of the City Council,
July 2013
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2 City of Cupertino

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 2

SALARY SCHEDULE

As rates of pay are set forth under the Cupertino Municipal Code 2.1 6.020, and hereby adopted by action of the City Council, so are those rates of pay included herein as a part of this Compensation program. The inclusion herein of said rates and schedules does not affect any effective dates or otherwise reflect on the approval processes required but is shown as an integral part of this Program for completeness of record.

Adopted by Action of the City Council
July, 2013, October 2016
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3 City of Cupertino

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 3

TRAINING AND CONFERENCES
I. POLICY

It is City of Cupertino policy that members of the City Council and the Council’s commissions and committees, shall be reimbursed or receive a direct advance according to the schedules, terms and conditions as set forth herein for the expenses authorized below. This policy is established in accordance with California Government Code Sections 53232.2 and 53232.3.

III. AUTHORIZED EXPENSES

The City Council and their commission and committee members can receive reimbursements or advances toward actual and necessary expenses incurred by participating in the following activities or events:

1. Communicating with representatives of regional, state and national government on City adopted policy positions;

2. Attending seminars, conferences, and training to improve skill and information levels;

3. Participating in regional, state and national organizations whose activities affect the City’s interests (such as the League of California Cities);

4. Attending International Conferences, budget limited to $2,500 per fiscal year, provided there is a benefit to the City;

5. Attending City events;

1. Attending functions of other local civic or community organizations where there is a clear nexus between the event and the member’s attendance as an official representative of the City. Purely social events, service club dues and meals, and political or charitable contributions or events would be excluded. For purposes of this section, reimbursable fundraisers and events include, but are not limited to, Cupertino Union School District, Fremont Union High School District, Foothill‐ De Anza Community College District, Silicon Valley Leadership Group, Cupertino American Cancer Society (ACS) Relay for Life and Cupertino Chamber of Commerce activities.
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4 The City will not reimburse or advance payment toward expenses including, but not limited to:

1. The personal portion of any trip;

2. Family expenses, including those of a partner when accompanying Council or commission member on City related business, as well as child or pet related expenses.

3. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa treatments, etc.

4. Meals and entertainment paid on behalf of third parties outside of the City;

5. Gifts of any kind for any purpose;

6. Alcoholic beverages;

7. Non‐mileage personal automobile expenses including repairs, insurance, gasoline, traffic citations; and

8. Personal losses incurred while on City business.

IV. BUDGETARY LIMITATIONS

Reimbursement or advancement of expenses shall not exceed budgetary limitations.

Changes in appropriations will be done through the budget process.

V. REIMBURSEMENT AND ADVANCE SCHEDULE

A. Intent

This schedule is written with the intent that the City Councilmember, commissioner, or committee member will make every effort to find the lowest possible cost to the City for traveling on City business. For example, if paying for parking at the airport is less expensive than paying for a taxi or airport shuttle, then officials should drive their car and park at the airport; or if renting a car is lower than taking taxis at the out‐of‐town location, then a car should be rented. Air reservations should be booked in advance to obtain discounted fares. The following procedures apply whether the expense is being paid through a reimbursement or a direct advance.
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5 B. Local Area

The local area is defined to be within Santa Clara and San Mateo Counties and within a 40 mile distance from Cupertino when traveling to Alameda County.

C. Registration

The City will pay the registration fee for authorized attendance at a convention, conference, seminar or meeting.

D. Transportation

The City will pay transportation costs on the basis of the lowest cost intent stated in paragraph A. Eligible transportation costs include airfare (with coach fare being the maximum), van or taxi service to and from the attendee’s home and airport, destination or airport parking charges, taxi and shuttle services at the out‐of‐town location, trains, tolls, or rental cars. Use of a personal automobile for City business shall be reimbursed or advanced at the rate per mile in effect for such use, except in no case shall it exceed air coach fare if the vehicle is being used for getting to the destination. Government or group rates offered by a provider of transportation must be used when available.

E. Lodging

Hotel or lodging expenses of the City official resulting from the authorized event or activity defined in this policy will be reimbursed or advanced if the lodging and event occur outside the local area. Not covered will be lodging expenses related to person(s) who are accompanying the City member, but who themselves are not on City business.

In this instance, for example, the difference between single and multiple occupancy rates for a room will not be reimbursed.

Where the lodging is in connection with a conference or other organized educational activity, City‐paid lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, providing that lodging at the group rate is available at the time of booking. If the group rate at the conference hotel is not available, then the non‐conference lodging policy described in the next paragraph should be followed to find another comparable hotel.

Where lodging is necessary for an activity that is not related to a conference or other organized educational activity, reimbursement or advances shall be limited to the actual cost of the room at a group or government rate. In the event that a group or government 370
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6 rate is not available, lodging rates that do not exceed the median price for lodging for that area and time period listed on travel websites like www.hotels.com , www.expedia.com or an equivalent service shall be eligible for reimbursement or advancement.

F. Meals

1. No Conference

The actual cost of a meal can be claimed, within a standard of reasonableness, but receipts must be kept and submitted for the expense incurred.

2. As Part of a Conference

When City officials are attending a conference or other organized educational activity, they shall be reimbursed or advanced for meals not provided by the activity, on an actual cost basis. The actual cost rate shall follow the rules described in the meals with no conference paragraph.

G. Other Expenses

Payments toward or reimbursement of other expenses related to authorized activities or events shall be limited to the actual costs consistent with the application of reasonable standards. Receipts must be kept and submitted for all expenses.

VI. DIRECT CASH ADVANCE POLICY

From time to time, it may be necessary for a City official to request a direct cash advance to cover anticipated expenses while traveling or doing business on the City’s behalf. Such request for an advance should be submitted to the City Manager or Department Head no less than seven days prior to the need for the advance with the following information: 1) Purpose of the expenditure; 2) The anticipated amount of the expenditure (for example, hotel rates, meal costs, and transportation expenses); and 3) The dates of the expenditure.

An accounting of expenses and return of any unused advance must be reported to the City within 30 calendar days of the official’s return on the expense report described in Section VII.

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7 VII. EXPENSE REPORT REQUIREMENTS

All expense reimbursement requests or final accounting of advances received must be approved by the City Manager or Department Head, on forms determined by the Finance Department, within 30 calendar days of an expense incurred, accompanied by a business purpose for all expenditures and a receipt for each item other than mileage. The report will be a public record subject to disclosure under the Public Records Act.

VIII. REPORTS TO CITY COUNCIL OR COMMISSIONS

At the next regular City Council or commission meeting, each councilmember or commissioner shall briefly report on publicly noticed meetings attended at City expense.

If multiple members attended the meeting, a joint report may be made.

IX. POLICY VIOLATIONS

Violations of this policy including falsifying expense reports may result in any or all of the following: (1) loss of reimbursement privileges, (2) demand for restitution to the City, (3) civil penalties of up to $1,000 per day and three times the value of the resources used, and 4) prosecution for misuse of public resources.

Revised 7/83, 7/85, 7/87, 7/88, 7/91, 7/92, 12/07, 7/10 372
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8 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 4

MILEAGE REIMBURSEMENTS

It is City of Cupertino policy that eligible persons under this Compensation Program shall be compensated fairly for the use of personal automotive vehicles on City business. Those persons who occasionally are required to use their personal automobiles for City business shall be reimbursed for such use at the established IRS rates. Submission of reimbursement requests must be approved by the City Manager.

Adopted by Action of the City Council
July, 2013
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9 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 5

ASSOCIATION MEMBERSHIPS AND

PROFESSIONAL PUBLICATIONS

It is City of Cupertino policy that eligible persons under this Compensation Program shall be entitled to City sponsored association memberships as well as receiving subscriptions to professional and technical publications. Such sponsorship, however, shall be conditioned upon the several factors as set forth below.

Each association for which membership is claimed must be directly related to the field of endeavor of the person to be benefited. Each claim for City sponsored membership shall be submitted with their concurrence to the City Manager for approval.

Subscriptions to or purchase of professional and technical publications may be provided at City expense when such have been authorized by the City Manager providing the subject matter and material generally contained therein are related to municipal governmental operations.

Adopted by Action of the City Council
July, 2013
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10 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION

PROGRAM
Policy No. 7
HEALTH BENEFITS PLAN ‐ CITY

CONTRIBUTION
It is the policy of the City of Cupertino to provide group hospital and medical insurance under which the elected official positions and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees and their families through comprehensive health plans available only through employer sponsorship.

Although the premium cost for the insurance provided remains the ultimate responsibility of the employee in these positions, the City shall contribute the amounts listed below towards the premium or pay the full cost of the premium if less tha n the stated amounts. If the premium amounts for any employee covered by this policy are less than the amounts listed below per month, the difference between the premium amount and the stated amounts will be retained by the City.

Effective
January 1, 2020
City Max Health
Contribution
City Max *Dental
Contribution
City Total Max
Contribution
Employee 848.87 126.78 975.65
Employee +1 1,443.09 126.78 1,569.87
Employee +2 1,876.01 126.78 2,002.79

January 1, 2021 City Max Health
Contribution
City Max *Dental
Contribution
City Total Max
Contribution
Employee 891.32 126.78 1,018.10
Employee +1 1,515.24 126.78 1,642.02
Employee +2 1,969.81 126.78 2,096.59

January 1, 2022 City Max Health
Contribution
City Max *Dental
Contribution
City Total Max
Contribution
Employee 935.88 126.78 1,062.66
Employee +1 1,591.01 126.78 1,717.79
Employee +2 2,068.31 126.78 2,195.09

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11 *Dental Coverage: Effective the first month after Council adoption of MOU, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract.

.

Adopted by Action of the City Council
July, 2013, October 2016, July 2019,
December 2019, January, 2023
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12 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 9

LIFE INSURANCE

It is the policy of the City of Cupertino to provide life insurance benefits to the elected officials to a maximum of $16,000.

The elected officials may enroll in the life insurance program offered if eligible under the contract provisions of the policy and the personnel rules of the City. The full cost of premiums for these programs shall be paid by the City for such individuals.

Adopted by Action of the City Council
July, 2013
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13 City of Cupertino

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 10

DEFERRED COMPENSATION

It is the policy of the City of Cupertino to provide equitable current compensation and reasonable retirement security for the elected officials for services performed for the City. The City participates in the California Public Employees’ Retirement System (PERS) and deferred compensation plans have been established. Both the elected official and City may make contributions from current earnings to these plans. The purpose of this policy is to promote means by which compensation may be provided in such manner and form to best meet the requirements of the City and the needs of the elected officials. .

The City shall maintain and administer means by which the elected officials in these positions may defer portions of their current earnings for future utilization. Usage of such plans shall be subject to such agreements, rules and procedures as are necessary to properly administer each plan. Individual contributions to such plans may be made in such amounts as felt proper and necessary to the elected official. The City contributions shall be as determined by the City Council.

Adopted by Action of the City Council
July, 2013
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14 City of Cupertino

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 11
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CONTRIBUTION
A. Co uncil M embers occupying office on or bef ore December 29, 2 012 Only:

For
Council Members occupying office on or be fore December 29, 2012, the City has contracted with CalPERS for a 2.7% @55 retirement formula.

Effective in the first full pay period in July 2017, each employee sh all pay the f ull 8.0% of applicable salary of the employee’s contribution towards CalPERS.

B.

Council Members occupying office on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations
Only.

F
or Council Members hired on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic me mber under C a lPERS R egulations only the City has contracted with CalPERS for a 2.0% @ 60 retirement formula, three year average compensation
Effective January 1, 2017, the City sh all n ot pay the employee’s contribution rate to the C
alifornia Public Employe es R etirement System (CalPERS) and each employee shall pay th
e full 7% of applicable salary of the employee’s con tribution tow ards CalPERS.

C. For Council members occupying office on of after January 1, 2013, or former CalPERS employees that do not qualify as Classic employees hired by the City of Cupertino on or after January 1,
2013
For Council Members occupying office on or after January 1, 2013 Cal PERS has by statute implemented a 2% @ 62 formula, three year average and employees in this category shall pay 50% of the normal cost rate as determined by CalPERS.

Adopted by Action of the City Council
J
uly, 2013, October 2016, July 2019
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15 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 12

DENTAL INSURANCE ‐ CITY CONTRIBUTION

It is the policy of the City of Cupertino to provide dental insurance under which the elected official positions and their dependents may be covered.

The premium cost for the insurance provided by the City shall not exceed $126.78* per month per individual. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with Personnel Rules of the City and the provisions of the contract for such insurance between the City and carrier or carriers.

*Dental Coverage: Effective the first month after Council adoption of agreement, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract.

Adopted by Action of City Council
July, 2013, October 2016, July 2019
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16 City of Cupertino

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 14

EMPLOYEE ASSISTANCE PROGRAM

It is the policy of the City of Cupertino to provide an Employee Assistance Program for the benefit of the elected officials and their eligible dependents. The purpose of this program is to provide professional assistance and counseling concerning financial, legal, pre‐retirement, and other matters of a personal nature.

Adopted by Action of the City Council
July, 2013
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17 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 17

VISION INSURANCE – CITY CONTRIBUTION

It is the policy of the City of Cupertino to provide vision insurance under which employees and their dependents may be covered.

The premium cost for the insurance provided by the City shall not exceed $14.94 per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with the provisions of the contract between the City and carrier or carriers providing vision insurance coverage,

Adopted by Action of the City Council
July, 2013

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18 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 18

TECHNOLOGY POLICY

Purpose
This policy establishes guidelines and standards regarding the provision of technology hardware and software for Councilmembers.

Scope and Applicability
This policy applies to all City Councilmembers for the provision and maintenance of City issued technology hardware and software This technology is in addition to City technology equipment and software residing within the Mayor's and Council's office at City Hall.

Technology Provision
To facilitate communications with citizens, staff and other Councilmembers, each Councilmember may elect to be issued the following technology hardware at the beginning of each term.
• 1 Laptop
• 1 Docking Station
• 1 Monitor
• 1 Webcam
• 1 Keyboard & Mouse
• 1 Phone with Voice/Data Plan
Each Councilmember’s issued laptop will have the following additional software applications:
• Office productivity platform, e.g., Microsoft O365
• Cybersecurity Tools, e.g.., end point protection and multifactor authentication • Video Conferencing, e.g., Zoom
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19 Each Councilmember’s issued phone will have the following additional software applications
• Office productivity platform
• Cybersecurity Tools
• Video Conferencing

Issued technology hardware and software will meet current City hardware and software standards to ensure proper security, maintenance, and support.

Councilmembers who wish to not use City issued equipment must provide written acknowledgement that the technology they will use has current antivirus software and all software applications are up to date from a cyber security standpoint.

Councilmembers use the issued equipment for the performance of official City business. Data contained within the equipment is public property and considered a public record, therefore subject to all Public Records Act and Brown Act policies.

Councilmembers, upon completion of their term, will return all issued equipment to the Innovation & Technology Department. City equipment and/or software is not available for purchase.

City Support
Innovation & Technology staff are solely responsible to provide technical support and maintenance for issued equipment and may be reached at
[email protected] or
(408) 777‐3 381. If required, Councilmembers shall bring their equipment to City Hall for repair and/or service.

Adopted by Action of the City Council
July, 2019, January, 2023
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20 City of Cupertino

City Council
and
Planning Commission
Compensation

Effective January 1, 2017
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21 CITY OF CUPERTINO CITY COUNCIL

AND PLANNING COMMISSION
EFFECTIVE January 1, 2017

The salaries, wages or rates of pay for members of the City Council and Planning Commission are set forth below. Only the City Council can modify these rates.

Members of the City Council $737.54/month
Members of the Planning Commission* $50.00/meeting (maximum $200 monthly)

Effective first full pay period in July 2017
Members of the City Council $743.07/month
Members of the Planning Commission* $50.00/meeting (maximum $200 monthly)

*Benefits as set forth in this document do not apply to members of the Planning Commission.
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Council
Technology
Policy
Citywide Policy Manual
Policy #
Attachments:

N/A
Effective Date:

December 12, 2022
Responsible Department:

Innovation & Technology
Related Policies & Notes:

This policy supersedes previous Council Technology Polices from 2005, 2012, and 2018 Purpose
This policy establishes guidelines and standards regarding the provision of technology hardware and software for Councilmembers.

Scope and Applicability
This policy applies to all City Councilmembers for the provision and maintenance of City issued technology hardware and software This technology is in addition to City technology equipment and software residing within the Mayor's and Council's office at City Hall.

Technology Provision
To facilitate communications with citizens, staff and other Councilmembers, each Councilmember may elect to be issued the following technology hardware at the beginning of each term.
• 1 Laptop
• 1 Docking Station
• 1 Monitor
• 1 Webcam
• 1 Keyboard & Mouse
• 1 Phone with Voice/Data Plan
Each Councilmember’s issued laptop wil l have the following additional software applications:
• Office productivity platform, e.g., Microsoft O365
• Cybersecurity Tools, e.g.., end point protection and multifactor authentication • Video Conferencing, e.g., Zoom

EXHIBIT B
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Each Councilmember’s issued phone will have the following additional software applications
• Office productivity platform
• Cybersecurity Tools
• Video Conferencing
Issued t echnology hardware and software will meet current City hardware and software standards to ensure proper security, maintenance, and support.

Councilmembers who wish t o not use City issued equipment must provide w ritten acknowledgement that the technology they will use has current antivirus software and all software applications are up to date from a cyber security standpoint.

Councilmembers use the issued equipment for the performance of official City business .

Data contained within the equipment is public property and considered a public record, therefore subject to all Public Records Act and Brown Act policies.

Councilmembers, upon completion of their term, will return all issued equipment to the Innovation & Technology Department. City equipment and/or software is not available for purchase.

City Support
Innovation & Technology staff are solely responsible to provide t echnical support and maintenance for issued equipment and may be reached at [email protected] or (408) 777-3381. If required, Councilmembers shall bring their equipment to City Hall for repair and/or service.

Submitted By: Approved By:

Printed Name: Bill Mitchell Printed Name: Pamela Wu Title: CTO Title: City Manager
Signature: Signature:

Date: December 11, 2022 Date:
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Vote
AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
ls/Kimberly Smith
City Clerk
Members of the City Council
Wang, Kwok, Lowenthal, Mahoney, Sandoval
None
None
None
APPROVED:
ls/Kris Wang
Mayor, City of Cupertino

EXHIBIT C
RESOLUTION NO. 07-103

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO

PROVIDING FOR A DISCRETIONARY FUND TO BE ADMINISTERED BY THE CITY MANAGER TO PROVIDE A ll?UNDING SOURCE FOR PROJECTS

THAT THE MAYOR MAY WISH TO PROPOSE FROM TIME TO TIME
DURING THE MAYOR'S TERM OF.OFFICE
WHEREAS, The City Council wishes to provide a small source of funds for projects that may be proposed at the discretion of the Mayor during the Mayor's term of office; and,
WHEREAS, The City Council wishes to establish a Mayor's initiative budget that will be included as part of the City Manager's Office budget in the City Manager's discretionary account; and,
WHEREAS, The City Council wishes to determine, as part of the budget process, the amount of funding for the duration of the Mayoral term; NOW,
THEREFORE, BE IT RESOLVED by the City Council of the City of Cupertino that Mayor's initiative budget is established in an amount to be determined by the City Council as part of the City Manager's discretionary fund to be used for projects that the Mayor deems appropriate during the Mayor's term of office; and, BE IT FURTHER RESOLVED that the decision to spend money on a Mayor's project will be jointly determined by the Mayor and the City Manager, except that the City Manager may, at his or her sole discretion escalate the spending decision to the City Council if he or she determines that to be necessary or appropriate; and, BE IT FURTHER RESOLVED that the City Council will be advised by an item on
the Council Agenda prior to the date of the Mayor's State of the City Address, of any new project or initiative that the Mayor may wish to propose during the State of the City Address.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 5th day of June 2007, by the following vote:
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CITY OF CUPERTINO
Agenda Item
22-11650 Agenda Date: 2/7/2023
Agenda #: 16.

Subject: Consider an appeal of the Planning Commission’s decision to deny Sign Exception to allow three (3) wall signs where two (2) are permitted and to further allow two (2) of the three (3) wall signs to be oriented towards the freeway on two separate storage facility buildings. (Application No(s): EXC-2022-003; Applicant(s): David Ford, All Sign Services; Location: 20565 Valley Green Dr.; APN: 326-10-044) Conduct a public hearing and adopt Resolution No. 23-025 (Attachment A) upholding the appeal in part, approve one of the two-requested freeway-oriented signs, and deny the requested Sign Exception
CITY OF CUPERTINO Printed on 2/1/2023Page 1 of 1
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CITY COUNCIL STAFF REPORT
Meeting: February 7, 2023
Subject
Consider an appeal of the Planning Commission’s decision to deny a Sign Exception at a storage facility . (Application No(s): EXC -2022-003; Applicant(s): David Ford, All Sign Services; Location: 20565 Valley Green Dr.; APN: 326-10-044).

Recommended Actions
Conduct a public hearing and adopt a resolution (Attachment 1) upholding the appeal in part, approve one of the two -requested freeway-oriented signs, and deny the requested Sign Exception.

Project Data:

General Plan Designation: Industrial/Residential
Special Area: North De Anza Special Area
Master Plan/Conceptual Plan: North De Anza Conceptual Zoning Plan Zoning Designation: P (CG, ML, Res) Planned Development with General Commercial, Industrial, and Residential Intent
Property Area: 2.995 acres / 130,462 sq. ft.

Building Area: 263,671 sq. ft.

Signs Allowed Proposed
Wall Signs 2 3
Freeway Oriented Signs 1 2
Project Consistency with
General Plan: Yes
Zoning: Yes, with approval of exception
Environmental Assessment: Categorically Exempt

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Background
On June 18, 2019, City Council
approved development
permits to allow the
demolition of an existing
storage facility and the
construction of a new storage
facility (Public Storage)
consisting of two four -story
buildings and associated site
improvements.1 Signage was
not included in the permit application and was not approved at the time.

On June 2, 2022, the developer applied for a Sign Exception (EXC-2022-003) to allow:
 A total of three (3) wall signs where a maximum
of two (2) are permitted for a single business;
and
 Of the three wall signs, two (2) are freeway-
oriented where only one is permitted subject to
Planning Commission approval.

Figures 1, 2 and 3 show the proposed locations of
the three wall signs.

On October 11, 2022, the Planning Commission unanimously adopted (5-0-0) Resolution No. 6962 (Attachment C) denying the proposed Sign Exception. The Planning Commission found that the proposed project would be:

1 Development Permit (DP-2018-03), Architectural Site Approval (ASA-2018-04), Fence Exception (EXC- 2018-01), and Tree Removal Permit (TR-2019-11)
Building One

Building Two
Figure 1: Site plan and Proposed Wall Sign locations
Figure 2 View of location of Sign 1.

Figure 3 View of proposed location of signs 2 & 3.
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(a) inconsistent with the intent of the sign (CMC Chapter 19.104) and bird safety (CMC Chapter 19.102) ordinances,
(b) a potential safety hazard to motorists, and
(c) potentially preclude consideration of this portion of I -280 being designated as a scenic freeway.

On October 21, 2022, the project’s sign consultant, David Ford of All Sign Services, on behalf of Public Storage, appealed the Planning Commission’s decision (Attachment B) to deny the sign exception. The basis of the appellant’s appeal of the Planning Commission’s decision is summarized below:

1. The Planning Commission decision was based on inaccurate information regarding CEQA requirements, Dark Sky restrictions, and Highway 280’s potential designation as a scenic highway.

2. The absence of a discussion by Planning Commissioners on the required find ings to allow the proposed signage as outlined in the Planning Department staff report, which was supported by the applicant.

Council’s review of the Planning Commission’s determination is de novo, The Council may affirm or modify the Commission’s decision based on evidence presented at the public hearing, including any evidence in the record.

Discussion
Since signage details were not included in the original Planning Permit for the development of the storage facility, staff reviewed the signage proposals at the time the applicant applied for the sign permit, which is not uncommon for commercial and industrial projects. All of the signs discussed in this report would be building -mounted, their specifications are as follows:
 “Sign 1”, proposed on the east elevation of Building One , is not oriented toward I - 280 (see Figure 2);
 “Sign 2”, also on Building One , proposed on the north elevation, is oriented for visibility from I-280 (See Figure 3);
 “Sign 3” is proposed on the north elevation of Building Two and, like “Sign 2,” is oriented toward I-280 (see Figure 3).

Per the Sign Ordinance, all wall or building-mounted signs proposed within 660 feet of a “landscaped freeway” (measured from edge of right-of-way), and oriented towards that freeway must be approved by the Planning Commission. Both “Sign 2” and “Sign 3” are proposed within 100 feet of I-280, which meets the definition of a landscaped freeway. A 395
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Sign Exception is required when more than one freeway -oriented sign is proposed by a single business.

In Table 1, below, the proposed signs are evaluated in comparison with the relevant, permitted sign regulations for wall-mounted signs for commercial and industrial uses as listed in the Sign Ordinance (CMC 19.104).

Table 1 Summary of regulations as it relates to each sign.

Permitted Proposed Signs
Sign One Sign Two Sign Three
Number of
Wall Signs
One sign per business with
exterior frontage. One
additional for:

- Businesses with no ground
sign and adjacent to more than
one street or shopping center
driveway.

- Sign directed to interior of
project and not visible from
any public right- of-way.

- Single tenant building pad
with more than 5,000 s.f.

Permitted One additional sign may be
permitted since the property
does not have a ground sign
and is adjacent to more than
one street.

A single business is not
permitted to have a third wall
sign.

Maximum
Size and
length of
Sign
1 s.f. per linear ft of store
frontage on which sign is
located.

Maximum Area = 200 s.f.

Minimum Area = 20 s.f.
52 sq. ft. on a
81-foot
frontage
159 sq. ft. on a
324-foot
frontage
165 sq. ft. on a
322-foot
frontage
Length - 70% of store frontage
maximum
29% 13% 14%
Freeway
Oriented
Signs
- 1 per business/tenant in a
building occupied by two or
more tenants

- Maximum two
Not a
freeway-
oriented
sign.

Freeway Oriented sign – needs
Planning Commission
approval.

Illumination
Restrictions
250 foot-lamberts 88.8 foot-lamberts

The applicant proposes that all the signs consist of individual channel letters with an acrylic face and be internally illuminated with LED lighting. White lettering indicating 396
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the company’s name, “Public Storage,” will be centrally placed within an orange background. As noted, above, in Table 1, all three proposed signs comply with the criteria for size and illumination.

To support an exception to the Sign Ordinance, one of the findings that must be made is that the exception requested will require the least modification of the prescribed regulations and the minimum variance to accomplish the purpose. Planning staff does not believe having three wall signs, two of which are freeway oriented, meets this finding for the following reasons:
 Allowing three wall signs is more than the number (2) of wall signs permitted for a building occupied by a single business. “Sign Two” and “Sign Three” are adjacent to a driveway and either one individually would comply with CMC 19.104. In other words, either “Sign 2” or “Sign 3”, but not both, would be allowable.  Only buildings with more than one business are allowed up to two freeway - oriented signs under CMC section 19.104.200 . This exception re quest to allow two freeway-oriented signs on buildings occupied by the same business would therefore be at variance with the Sign Ordinance.

Further, allowing more than one wall-mounted sign to a single business is contrary to the intent and purpose of the Sign Ordinance (CMC 19.104), which seeks to balance the architectural and aesthetic harmony of signs into the overall building design but st ill allow for good sign visibility for both the public and the needs of businesses , without over-signage. Accordingly, staff recommends that the City Council allow the single - tenant applicant, Public Storage, one building-mounted sign oriented to I-280, but not the installation of a second freeway -facing sign on the storage facility. Either “Sign 2” or “Sign 3” are consistent with section 19.104; both signs should no t be permitted . Staff further recommends that the appellant/applicant be permitted to choose which of the two signs (“Sign 2” or “Sign 3”) it would prefer to have approved through the exception, since each proposed sign complies with the Sign Ordinance criteria for size and illumination.

As such, Staff recommends that the City Council partially uphold the appeal and allow one freeway -oriented wall sign, consistent with staff’s prior recommendation at the Planning Commission’s regular meeting on October 11, 2022.

Staff also recommends that the following findings be made to deny the second Sign Exception.

A. That the literal enforcement of the provisions of this title will result in restrictions inconsistent with the spirit and intent of this title;
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CMC 19.10 4 (Sign Ordinance) has allowances for multiple wall signs on the different facades, as well as standards for freeway-oriented signage. Allowing the exception for a sign on the north façade of either Building One or Building Two is consistent with the spirit and intent of the Ordinance. However, allowing two freeway-oriented signs would permit a sign beyond the maximum number of signs allowed facing a busy thoroughfare, such as I -280, and would also allocate multiple signs to a single business which is contr ary to the intent and purpose of this Chapter to provide architectural and aesthetic harmony of signs, as they relate to building design and surrounding landscaping; as well as, regulations of sign dimensions and quantity which will allow for good visibili ty for the public and the needs of the business.

B. That the granting of the exception will not result in a condition which is materially detrimental to the public health, safety, or welfare; and The sizes and location of the signs will not result in a situation that is materially detrimental to the public health, safety, or welfare to the community, as the sizes of the signs and their illumination are below the maximums standards established in the Municipal Code.

C. That the exception to be granted is one that will require the least modification of the prescribed regulations and the minimum variance that will accomplish the purpose.

Allowing both “Sign 2” along the north elevation of Building One and “Sign Three” along the north elevation of Building 2, is beyond the allowed number of wall signs, as well as beyond the number of allowed freeway-oriented signs. The exception would therefore require a greater modification and variance to CMC 19.104 (Signs Ordinance). However, allowing either “Sign 2” or “Sign 3” is consistent with the Municipal Code.

Other Department/Agency Review
The City’s Building Division, Public Works Department, Environmental Services Division, Sheriff’s Department, Cupertino Sanitary District, and the Santa Clara County Fire Department have reviewed and conditioned the project.

Environmental Review
The development project was found to be categorically exempt from the requirements of the California Environmental Quality Act (CEQA) as an in-fill development project. Cal.

Code Regs., tit. 14, § 15332 (“CEQA Guidelines” § 15332) by City Council on June 18, 2019.

The installation of signage do es not alter the determination that the project is exempt under section 15332. Additionally, because the project was consistent with the General Plan designation and zoning for the site, it was allowed for streamlining under CEQA 398
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Guidelines Section 15183. As the buildings are currently built, this project could also be categorically exempt under CEQA Guidelines section 15301 (Existing Facilities).

Public Noticing
The following table is a summary of the noticing done for this project:

Notice of Public Hearing, Site Notice & Legal Ad Agenda  Site Signage (10 days prior to the hearing)
 Legal ad placed in newspaper (at least 10 days prior to the hearing)
 Public hearing notices were mailed to property owners within 300 feet of the project site (10 days p rior to the hearing)
 Posted on the City’s
official notice bulletin
board (one week prior to
the hearing)
 Posted on the City of
Cupertino’s website
(one week prior to the
hearing)
Public Comment
Public Comments were received as part of the Planning Commission review. Please review Attachment D.

Fiscal Impacts
No fiscal impact.

Sustainability Impacts
The proposed project would not conflict any goals or measures to reduce greenhouse gas emissions in the Climate Action Plan.

Next Steps
The City Council’s decision will be final unless reconsidered within 10 days of the decision. The applicant may apply for building permits at that time.

Prepared by: Gian Paolo Martire, Senior Planner
Reviewed by: Piu Ghosh, Planning Manager
Luke Connolly, Acting Director of Community Development Christopher Jensen, City Attorney
Approved for Submission by: Pamela Wu, City Manager
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ATTACHMENTS:

A. Draft Resolution for EXC-2022-003
B. Appeal Form
C. Planning Commission Resolution 6962
D. Public Comments
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RESOLUTION NO. ________

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

UPHOLDING THE APPEAL IN PART, APPROVE ONE OF THE TWO-

REQUESTED FREEWAY-ORIENTED SIGNS, AND DENY THE REQUESTED SIGN EXCEPTION LOCATED AT 20565 VALLEY GREEN DR.
________________________________________________________________________ ____________________________________________________________________ WHEREAS, the Planning Commission of the City of Cupertino received an application for a Sign Exception (EXC-2022-003) to allow three (3) wall signs where two (2) are permitted and to further allow two (2) freeway -oriented signs on two separate buildings occupied by the same business, Public Storage (“applicant”) ; and
WHEREAS, the necessary public notices have been given as required by the Procedural Ordinance of the City of Cupertino, and the Planning Commission has held at least one public hearing in regard to the application; and WHEREAS, on October 11, 2022, the Planning Commission denied on a 5-0 vote the Sign Exception (EXC-2022-003) in substantially similar form to the Resolution presented (Resolution No. 6962); and
WHEREAS, on October 21, 2022, the project’s sign consultant, David Ford of All Sign Services, on behalf o f Public Storage, appealed the Planning Commission’s decision to deny the sign exception; and
WHEREAS, all necessary public notices having been given as required by the City of Cupertino Municipal Code and the Government Code, and the Planning Commission held at least one public hearing in regard to this application, and WHEREAS, on February 7, 2023, the City Council held a public hearing to consider the Project; and
WHEREAS, the City Council of the City of Cupertino is the decision-making body for the appeal of the Planning Commission decision.

NOW, THEREFORE, BE IT RESOLVED as follows:

1. The applicant has met the burden of proof required to support approval of an application for one freeway-oriented wall sign pursuant to Municipal Code section 19.104.200(A).

2. The applicant has not met the burden of proof required to support the approval of a Sign Exception for a second freeway-oriented sign/third wall sign.
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3. Pursuant to Municipal Code section 19.104.290, the City Council finds the following with regard to the application:

A. That the literal enforcement of the provisions of this title will result in restrictions inconsistent with the spirit and intent of this title; CMC 19.104 (Sign Ordinance) has allowances for multiple wall signs on the different facades, as well as standards for freeway -oriented signage. Allowing the exception for a sign on the north façade of either Building One or Building Two is consistent with the spirit and intent of the Ordinance. However , allowing two freeway-oriented signs would permit a sign beyond the maximum number of signs allowed facing a busy thoroughfare, such as I -280, and would also allocate multiple signs to a single business which is contrary to the intent and purpose of this Chapter to provide architectural and aesthetic harmony of signs, as they relate to building design and surrounding landscaping; as well as, regulations of sign dimensions and quantity which will allow for good visibility for the public and the needs of the business.

B. That the granting of the exception will not result in a condition which is materially detrimental to the public health, safety, or welfare; and The sizes and location of the signs will not result in a situation that is materially detrimental to the public health, safety, or welfare to the community, as the sizes of the signs and their illumination are below the maximums standards established in the Municipal Code.

C. That the exception to be granted is one that will require the least modification of the prescribed regulations and the minimum variance that will accomplish the purpose.

Allowing both “Sign 2” along the north elevation of Building One and “Sign Three” along the north elevation of Building 2, is beyond the allowed number of wall signs, as well as beyond the number of allowed freeway-oriented signs. The exception would therefore require a greater modification and variance to CMC 19.104 (Signs Ordinance). However, allowing either “Sign 2” or “Sign 3” is consistent with the Municipal Code.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council does hereby uphold the appeal in part, approve one of the two -requested freeway - oriented signs, and deny the requested sign exception for a second freeway - oriented sign.

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NOW, THEREFORE, BE IT FURTHER RESOLVED that the foregoing recitals are true and correct and are included herein by reference as findings.

CONDITIONS ADMINISTERED BY THE COMMUNITY DEVELOPMENT DEPT.

1. APPROVED EXHIBITS
Approval is based on the plan set received on June 3, 2022 entitled, “Public Storage”, drawn by Image National Signs, consisting of ten (10) sheets labeled “1-7, and VINYL”; except as may be amended by conditions in this resolution.

2. MODIFCATION OF SCOPE
The Planning Commission at its hearing approved only the Sign Exception for one freeway-oriented sign.

2. ACCURACY OF PROJECT PLANS
The applicant/property owner is responsible to verify all pertinent property data including but not limited to property bound ary locations, building setbacks, property size, building square footage, any relevant easements and/or construction records. Any misrepresentation of any property data may invalidate this approval and may require additional review.

3. EXCEPTION APPROVAL
A Sign Exception is hereby granted to allow a new freeway-oriented wall sign.

4. ILLUMINATION INTENSITY AND HOURS OF ILLUMINATION
The intensity of all signs shall not exceed 250 foot -lamberts. All illuminated signs shall be turned off by 11:00 p.m. A letter from the business operator shall be provided prior to final building permit approval acknowledging this condition of approval and incorporated in the building permit plans.

5. LIGHTING INTENSITY ADJUSTMENT
The City reserves the right to require the applicant to utilize dimming technology to adjust the lighting intensity of the sign when deemed necessary.

6. SIGN PERMITS REQUIRED
The applicant shall consult with the City’s Building Division to obtain the necessary sign permits for this project.

7. CONSULTATION WITH OTHER DEPARTMENTS
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The applicant is responsible to consult with other departments and/or agencies with regard to the proposed project for additional conditions and requirements. Any misrepresentation of any submitted data may invalidate an approval by the Community Development Department.

8. GRADING AND CONSTRUCTION HOURS AND NOISE LIMITS
a. All grading activities shall be limited to the dry season (April 15 to October 1), unless permitted otherwise by the Director of Public works. b. Construction hours and nois e limits shall be compliant with all requirements of Chapter 10.48 of the Cupertino Municipal Code. c. Grading, street construction, underground utility and demolition hours for work done more than 750 feet away from residential areas shall be limited to Mond ay through Friday, 7 a.m. to 8 p.m. and Saturday and Sunday, 9 a.m. to 6 p.m. Grading, street construction, demolition or underground utility work within 750 feet of residential areas shall not occur on Saturdays, Sundays, holidays, and during the nighttime period as defined in Section 10.48.053(b) of the Municipal Code. d. Construction activities shall be limited to Monday through Friday, 7 a.m. to 8 p.m. and Saturday and Sunday, 9 a.m. to 6 p.m. Construction activities are not allowed on holidays as defined in Chapter 10.48 of the Municipal Code. Night time construction is allowed if compliant with nighttime standards of Section 10.48 of the Cupertino Municipal Code. e. Rules and regulations pertaining to all construction activities and limitations identified in this permit, along with the name and telephone number of an applicant appointed disturbance coordinator, shall be posted in a prominent location at the entrance to the job site. f. The applicant shall be responsible for educating all contractors and subcontractors of said construction restrictions.

The applicant shall comply with the above grading and construction hours and noise limit requirements unless otherwise indicated.

9. NOISE AND VIBRATION NOTICE
At least 10 days prior to the start of any demolition, ground disturbing, or construction activities, the project applicant/contractor shall send notices of the planned activity by first class mail to off -site businesses and residents within 500 feet of th e project site. The City will provide a template notice and mailing addresses for the Applicant’s use. The notice must be approved by City staff prior to sending. The project applicant shall provide the City with evidence of mailing of the notice, upon request.
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Please note that, if pile driving, the requirements for noticing and monitoring outlined in City Code Section 17.04.050 G (3) shall apply.

10. NOISE AND VIBRATION SIGNAGE
At least 10 days prior to the start of any demolition, ground disturbing, or construction activities, the project applicant/contractor shall ensure that a sign measuring at least four feet by six feet shall be posted on construction fencing at the entrance(s) to the job site, clearly visible to the public, and include the following:
a. Permitted construction days and hours;
b. A description of proposed construction activities;
c. Telephone numbers of the City’s and contractor’s authorized representatives that are assigned to respond in the event of a noise or vibration complaint; and
d. Contact in formation for City’s and contractor’s authorized representatives that are assigned to respond in the event of a complaint related to fugitive dust, pursuant to the requirements for compliance with BAAQMD’s CEQA Air Quality Guidelines.

If the authorized contractor’s representative receives a complaint, they shall investigate, take appropriate corrective action, and report the complaint and the action taken to the City within three business days of receiving the complaint.

11. NOISE DURING CONSTRUCTION
Prior to issuance of any demolition, grading or building permit, include on plans a note that, during project construction, the project applic ant shall incorporate the following measures to reduce noise during construction and demolition activity:
a. The project applicant and contractors shall prepare and submit a Construction Noise Control Plan to the City’s Planning Department for review and appr oval prior to issuance of the first permit. The Construction Noise Plan shall demonstrate compliance with daytime and nighttime decibel limits pursuant to Chapter 10.48 (Community Noise Control) of Cupertino Municipal Code. The details of the Construction Noise Control Plan shall be included in the applicable construction documents and implemented by the on -site Construction Manager. Noise reduction measures selected and implemented shall be based on the type of construction equipment used on the site, dist ance 405
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of construction activities from sensitive receptor(s), site terrain, and other features on and surrounding the site (e.g., trees, built environment) and may include, but not be limited to, temporary construction noise attenuation walls, high quality m ufflers. During the entire active construction period, the Construction Noise Control Plan shall demonstrate that compliance with the specified noise control requirements for construction equipment and tools will reduce construction noise in compliance with the City’s daytime and nighttime decibel limits.
b. Select haul routes that avoid the greatest amount of sensitive use areas and submit to the City of Cupertino Public Works Department for approval prior to the start of the construction phase.
c. Signs will be posted at the job site entrance(s), within the on -site construction zones, and along queueing lanes (if any) to reinforce the prohibition of unnecessary engine idling. All other equipment will be turned off if not in use for more than 5 minutes.
d. During the entire active construction period and to the extent feasible, the use of noise producing signals, including horns, whistles, alarms, and bells will be for safety warning purposes only. The construction manager will use smart back-up alarms, which automatically adjust the alarm level based on the background noise level or switch off back -up alarms and replace with human spotters in compliance with all safety requirements and law.

12. DARK SKY COMPLIANCE
Prior to issuance of Building Permits, the applicant/property owner shall submit final plans in compliance with the approved lighting plans to comply with development standards of Cupertino Municipal Code Section

19.102.040 Outdoor Lighting Requirements. In the event changes are proposed from the a pproved plans, said changes must be reviewed and approved by the Director of Community Development or their designee.

The applicant shall provide all documentation required to determine compliance with the Municipal Code.

13. FUGITIVE DUST CONTROL
Prior to issuance of the any demolition, grading, or building permit, include on all permit plans, the full text of each of the Bay Area Air Quality Management District’s Basic Control Measures from the latest version of BAAQMD’s CEQA Air Quality Guidelines , as subsequently revised, 406
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supplemented, or replaced, to control fugitive dust (i.e., particulate matter PM2.5 and PM10) during demolition, gro und disturbing activities and/or construction.

14. INDEMNIFICATION
As part of the application, to the fullest extent permitted by law, the applicant shall agree to indemnify, defend with the attorneys of the City’s choice, and hold harmless the City, its City Council, and its officers, employees, and agents (collectively, the “indemnified parties”) from and against any liability, claim, action, cause of action, suit, damages, judgment, lien, levy, or proceeding (collectively referred to as “proceeding”) brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant related to any Ordinance, Resolution, or action approving the project, the related entitlements, environmental review documents, finding or determinations, or any other permit or approval authorized for the project.

The indemnification shall include but not be limited to damages, fees, and costs awarded against the City, if any, and cost of suit, attorneys’ fees, and other costs, lia bilities, and expenses incurred in connection with such proceeding whether incurred by the Applicant, the City, or the parties initiating or bringing such proceeding.

The applicant shall agree to (without limitation) reimburse the City its actual attorneys’ fees and costs incurred in defense of the litigation. Such attorneys’ fees and costs shall include amounts paid to the City’s outside counsel and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs direct ly related to the litigation reasonably incurred by City. The applicant shall likewise agree to indemnify, defend, and hold harmless the indemnified parties from and against any damages, attorneys’ fees, or costs awards, including attorneys’ fees awarded under Code of Civil Procedure section 1021.5, assessed or awarded against the indemnified parties. The Applicant shall cooperate with the City to enter a Reimbursement Agreement to govern any such reimbursement.

The Applicant shall agree to (without limitation) reimburse the City for all costs incurred in additional investigation or study of, or for supplementing, redrafting, revising, or amending, any document (such as an Environmental Impact Report, negative declaration, specific plan, or general plan amendment) if made necessary by proceedings challenging the project approvals and 407
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related environmental review, if the applicant desires to continue to pursue the project.

The Applicant shall agree that the City shall have no liability to the Applicant for business interruption, punitive, speculative, or consequential damages.

15. NOTICE OF FEES, DEDICATIONS, RESERVATIONS, OR OTHER

EXACTIONS
The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this ____day of _________, ____, by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

________
Hung Wei, Mayor
City of Cupertino

________________________
Date
ATTEST:

________
Kirsten Squarcia, City Clerk

________________________
Date

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CUPERTINO CITY CLERK

CUPERTINO APPEAL FORM

1. Application No.: __ E_X_C_-_20_2_2_-_0_0_3 ________________ _

2. Applicant(s) Name: _D_a_v1_·d_F_o_r_d __________________ _

3. Project Planner: __ G_1_·a_n_M_a_rt_i_re ___________________ _

4. Appellant(s) Name: David Ford
Address: 124 Allimore Ct., Roseville, CA 95747
Phone Number: 510-387-0546
Email: ___ d_a_v_e-'@=--a_lls_i-=g_n_s_e_rv_ic_e_s_._co_m _______________ _

5. Please check one:

6. 7.

Note: Do not use this form for Administrativ e Citation decisions (1 .16), Petitions for Reconsideration (2 .08.096), or Damage to Public Trees (14.12) a. Appeals regarding Title 19 (Zoning) and 14.18 (Protected Private Trees):
□ Administrative decision (14 calendar days after decision to appeal) ~ Planning Commission decision (14 calendar days after decision to appeal) □ Design Review Committee decision (14 calendar days after decision to appeal) b. Other appeals:

D Director of Community Development decision regarding Tentative Maps (18.20) (14 calendar days after decision to appeal)
□ Street Improvements (14.04) (30 calendar days after date of decision to appeal) □ Code Enforcement regarding Massage Permits (9.06) (5 business days after receipt of notice of decision to appeal)
□ Solicitor's Identification Permit (5.20) (10 calendar days after denial notice to appeal)
Date of decision or mailing of notice of decision: __ 1_0_/_1_1_/2_2 ________ _ Specifically state the grounds and basis for appeal: The Planning Commission decision was based on inaccurate information regarding CEQA requirements, Dark Sky restrictions, and Highway 280 designation as a scenic highway.

C:\ Users\A bigailA \A pp Data\ Local\M icrosoft \ Wind ows\INe tCache\ Content.Outl ook \85Y01ECJ\App eal form FY 21-22 fee.docx
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As planning staff stated in the Commission meeting the signs are exempt from CEQA requirements, the building construction went through the CEQA review process and was approved.

The Commission also noted that the sign would not be in compliance with the city's Dark Sky requirements but signs are exempt if they meet the required 250-ft lambert requirement which staff noted is the case for this proposal.

Several members of the public and some Commission members were concerned that the sign faces a potential Scenic Highway section of 280 and approving the sign could jeopardize that designation. Staff noted that there is no indication from Caltrans on when that review process could take place, how long it would take to complete , and that an illuminated sign would have any effect on that decision (staff mentioned other illuminated freeway signs in Cupertino as well as San Jose along this section of highway 280).

There was also no discussion by any Planning Commission members on the required findings to allow the proposed signage as outlined in the Planning Department staff report which was supported by the applicant. (Attach additional pages if necessar y)
7 , -" IL 0 u (} ~ tt 3 '1 . oo ~ 1,.-2- ,- 1 /
Please complete form, includ e appeal fee of ~ pursuant to Resolution No. 2b024;--2":t=cr57 ($716.37 for massage application appeals), and return to the attention of the City Clerk , 10300.

Torre Avenue, Cupertino, CaLif;miTuUL.
/ I
~-Signature(s): :i
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Please complete form, include ppeal fee of $347.00 pursua t to Resolution No . 22-049 ($716.37 for massage applic tion appeals), and return t the attention of the City Clerk, 10300 Torre Avenue, Cupertino, alifornia (408) 777-3223.

Signature(s): ---- ------- -------------------- -

19.12.170 Appeals.

A. An appeal may be filed by any person, firm or corporation aggrieved or affected by any grant, denial, modification or revocation of any permit, or any determination or interpretation related to any provision of this title .

B. Filing:

1. An appeal shall be in writing on forms prescribed by the City and shall be filed during regular office hours with the City Clerk within fourteen calendar days after the City decision or if a notice of decision is not required, from the date of the decision or determination, under this title. An appeal not filed within such time shall be barred. The appeal shall state the grounds and basis thereof.

2. Appeals under this chapter are subject to an appeal fee as prescribed by resolution of the City Council.

C. Noticing: Notice of hearing shall be given in the same manner in which the original notice was given. If a project with no noticing is appealed, appropriate noticing shall be determined by the Director of Community Development.

D. Appeal hearing body shall be determined in accord with Section 19.12.030.

E. Decision of the appeal hearing body: The decision or determination of the appeal hearing body on any appeal shall be final and effective immediately.

F. Notice of Decision: Notice of the appeal hearing body's decision shall be mailed to the original applicant, to the person filing the appeal, and to any other person who has filed a written request with the City Clerk.
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PAYMENT DATE
10/21/2022

COLLECTION STATION
Finance_Counter 2

RECEIVED FROM
David Ford

DESCRIPTION

PAYMENT CODE
Appeal
Printed by: Min Zhao
X

RECEIPT DESCRIPTION
Appeal
Appeal _Fee.. ... ...... ... . . .. .. . ........... .

Total Cash
Total Check
Total Charge
Total Wire
Total Other
Total Remitted
Change
Total Received
Customer Copy

Page 1 of 1 ends

$0.00
$0.00
$347.00
$0.00
$0.00
$347.00
$0.00
$347.00
Total Amount:

BATCH NO.
2023-04000399
RECEIPT NO.
2023-00000700

CASHIER
Min Zhao

ENTRY DATE
10/21/2022 03:45:05 PM

TRANSACTION AMOUNT
$347.00
$347.00
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RESOLUTION   N O.  6962
OF  THE  PLAN N IN G   COMMISSION   OF  THE  CITY  OF  CUPERTIN O DEN YIN G   A  SIG N   EXCEPTION   ON   TWO  SEPARATE  STORAG E  FACILITY BUILDIN G S  LOCATED  AT  20565  VALLEY   G REEN   DR.

S
ECTION I:   PROJECT DESCRIPTION
A
pplication No.: EXC‐2022‐003
Applicant:  David Ford (All Sign Services)
Location: 20565 Valley Green Dr.; APN: 326‐10‐044
SECTION II:   FINDINGS FOR DENIAL:

W
HEREAS, the Planning Commission of the City of Cupertino received an application for  a   Sign  Exception  (EXC‐2022‐003)  to  allow   three  (3)  wall  signs  where  two  (2)  are permitted and to further allow  two (2) freeway‐oriented signs on two separate buildings.; and
WHEREAS, the necessary public notices have been given as required by the Procedural Ordinance of the City of Cupertino, and the Planning Commission has held at least one public hearing in regard to the application; and
WHEREAS,  the  Planning  Commission  is  the  approval  authority  for  this  project  and  is granted the authority by the Municipal Code to exercise its independent judgment, based on the record before it, for purposes of the California Environmental Quality Act; and NOW, THEREFORE, BE IT RESOLVED:

That  after  careful  consideration  of  maps,  facts,  exhibits,  testimony  and  other  evidence submitted in this matter, the Planning Commission of the City of Cupertino:

1. Denies  the  Sign  Permit  (EXC‐2022‐003)  because  the  following  findings  pursuant  to CMC 19.104 cannot be made:

A. That the literal enforcement of the provisions of this title will result in restrictions inconsistent with the spirit and intent of this title;
Although CMC  19.104 Signs in some circumstances allows multiple wall signs, and has adopted  standards  for  freeway‐oriented  signage,  allowing  the  latter  in  this  specific location, whether illuminated and non‐illuminated, would be contrary to the intent and purpose  of   the  adopted  regulations.  These  regulations are  adopted  with  the  intent  of providing architectural and aesthetic harmony of  signs as they relate to building design and surrounding landscaping, as well as regulations of  sign dimensions and quantity which will allow for good visibility for the public and the needs of  the business while 414
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providing  for  the  safety  of   the  public  by  minimizing  distraction  to  the  motorist  and pedestrian. The proposed freeway facing signs, whether illuminated or not, serve only as advertising rather than wayfinding/business identification and, if  illuminated, would be a distraction to freeway motorists.

B. That  the  granting  of  the  exception  will  not  result  in  a   condition  which  is materially detrimental to the public health, safety, or welfare; and The location of  Signs Two and Three along the north elevations of  Buildings One and Two could result in a situation that is materially detrimental to the public health, safety, or welfare to the community by potentially precluding the City from designating this portion  of   I‐280  as  a   scenic  freeway,  while  also  causing  conflict  with  the  Bird‐Safe development requirements of  CMC  19.102 Glass and Lighting Standards.

C. That the exception to be granted is one that will require the least modification of the prescribed regulations and the minimum  variance that will accomplish the purpose.

As the application requests are above the number of  allowed freeway‐oriented signs, the exception would require a greater modification and variance to CMC  19.104 Signs than would typically be supported.

PASSED  AND  ADOPTED this  11th  day  of  October  2022,  at  a   regular  Meeting  of  the P
lanning  Commission  Committee  of  the  City  of  Cupertino,  State  of  California,  by  the following roll call vote:

AYES: COMMISSIONERS:  Scharf, Madhdhipatla, Kapil, Saxena, Wang NOES: COMMISSIONERS: None
ABSTAIN: COMMISSIONERS: None
ABSENT: COMISSIONERS: None
ATTEST:          APPROVED:

P
iu Ghosh          Steven Scharf
Planning Manager        Chair, Planning Commission
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/17 /6 /5 /39 /15 /3/13 /22 /i255 /29 /14 /14 /6 /3 /39 /19 /18 /i255/0/16/i255 /51 /13 /16 /5 /i255 /8 /52 /10 /i255 /11 /9 /8 /53 /10 /i255 /12 /15 /2 /36 /i255 /12 /3 /13 /16 /1 /15 /18 /i255 /19 /14 /14 /6 /3 /39 /5 /30 /i255 /19 /i255 /38 /5 /39 /5 /18 /3 /14/21/5/16 /2 /i255 /17 /5 /6/21/15/2 /i255 /54 /38 /17 /46 /11 /9 /8 /52 /46 /9 /55 /56 /10 /29 /6 /1 /28 /15 /2 /5/1 /2 /13 /6 /19 /18 /i255 /32 /15 /2 /5 /i255 /29 /14 /14 /6 /3 /39 /19 /18 /i255 /54 /29 /32 /29 /46 /11 /9 /8 /52 /46 /9 /57 /56 /10 /i255 /58 /5 /16 /1 /5 /i255 /47 /44 /1 /5 /14 /2 /15 /3 /16 /i255 /54 /47 /59 /12 /46 /11 /9 /8 /52 /46 /9 /8 /56 /10 /i255 /19 /16 /30 /i255 /41 /6 /5 /5 /i255 /25 /5/21/3/39 /19 /18 /i255 /17 /5 /6/21/15/2 /54 /41 /25 /46 /11 /9/8 /53 /46 /8 /8 /56 /i255 /2 /3 /i255 /19 /18 /18 /3 /31 /i255 /2 /28 /5 /i255 /1 /3 /16 /22 /2 /6 /13 /1 /2 /15 /3 /16 /i255 /3 /40 /i255 /19 /i255 /16 /5 /31 /i255 /22 /2 /3 /6 /19 /20 /5 /i255 /40 /19 /1 /15 /18 /15 /2 /36 /i255 /1 /3 /16 /22 /15 /22 /2 /15 /16 /20 /i255 /3 /40 /i255 /2 /31 /3 /i255 /54 /11 /56 /i255 /40 /3 /13 /6 /i255 /54 /57 /56 /i255 /22 /2 /3 /6 /36 /4 /13 /15 /18 /30 /15 /16/20 /22 /24 /i255 /32 /15 /20 /16 /19 /20 /5 /i255 /30 /5 /2 /19 /15 /18 /22 /i255 /31 /5 /6 /5 /i255 /5 /44 /1 /18 /13 /30 /5 /30 /i255 /40 /6 /3/21/i255/2 /28 /3 /22 /5 /i255 /14 /5 /6/21/15/2 /i255 /19 /14 /14 /18 /15 /1 /19 /2 /15 /3 /16 /22 /24 /i255 /32 /2 /19 /40 /40 /i255 /28 /19 /22 /i255 /16 /3 /31 /i255 /5 /39 /19 /18 /13 /19 /2 /5 /30 /i255 /22 /15 /20/16 /19 /20 /5 /14 /6 /3 /14 /3 /22/19 /18 /22 /24 /i255/0/13/6 /i255 /1 /3 /16 /1 /5 /6 /16 /22 /i255 /19 /6 /5 /i255 /40 /3 /1 /13 /22 /5 /30 /i255 /3 /16 /i255 /2 /28 /5 /i255 /18 /15 /20 /28 /2 /15 /16 /20 /i255 /3 /40 /i255 /2 /28 /5 /i255 /14 /6 /3 /14 /3 /22 /5 /30 /i255 /22 /15 /20 /16 /22 /10 /i255 /19 /16 /30 /i255 /31 /5 /i255 /19 /22 /45 /i255 /2 /28 /5 /i255 /1 /3/21/21/15/22 /22/15 /3 /16 /16 /3 /2 /i255 /2 /3 /i255 /19/14 /14 /6 /3 /39 /5 /i255 /18 /15 /20 /28 /2 /15 /16 /20 /i255 /3 /16 /i255 /19 /16 /36 /i255 /22 /15 /20 /16 /24 /8 /24 /12 /15 /2 /36/i255 /12 /3 /30 /5
/12 /15 /2 /36 /i255 /1 /3/30 /5 /i255 /22 /5 /1 /2 /15 /3 /16 /i255 /8 /53 /24 /8 /9 /57 /24 /11 /11 /9 /i255 /i255 /i255 /38 /5 /22 /15 /20 /16 /i255 /12 /6 /15 /2 /5 /6 /15 /19 /60 /17 /5 /6/21/19/16 /5 /16 /2 /i255 /32 /15 /20 /16 /22 /10/37/24/i255 /14 /6 /3 /39 /15 /30 /5 /22 /10 /i255 /61 /41 /28 /5 /i255 /22 /15 /20 /16 /62 /22 /i255 /1 /3 /18 /3 /6 /i255 /19 /16 /30 /15 /18 /18 /13/21/15/16/19 /2 /15 /3 /16 /i255 /22 /28 /19 /18 /18 /i255 /16 /3 /2 /i255 /14 /6 /3 /30 /13 /1 /5 /i255 /30 /15 /22 /2 /6 /19 /1 /2 /15 /3 /16 /i255 /2 /3 /i255/21/3/2 /3 /6 /15 /22 /2 /22 /i255 /3 /6 /i255 /16 /5 /19 /6 /4 /36 /i255 /6 /5 /22 /15 /30 /5 /16 /2 /22 /24 /63 /54/0/6/30 /24 /i255 /11/8 /46 /11 /11 /55 /57 /10 /i255 /29 /2 /2 /24 /i255 /29 /i255 /54 /64 /i255 /53 /10 /i255 /14 /19 /6 /2 /56 /10 /i255 /11 /9 /11 /8 /65 /i255/0/6/30 /24 /i255 /11 /9 /52 /33 /10 /i255 /64 /i255 /11 /i255 /54 /14 /19 /6 /2 /56 /10 /i255 /11 /9 /8 /8 /56 /41 /28 /5 /i255 /15 /16 /2/5 /16 /2 /i255 /3 /40 /i255 /40 /6 /5 /5 /31 /19 /36 /i255 /40 /19 /1 /15 /16 /20 /i255 /22 /15 /20 /16 /22 /i255 /15 /22 /i255 /1 /18 /5 /19 /6 /18 /36 /i255 /2 /3 /i255 /30 /15 /22 /2 /6 /19 /1 /2 /i255/21/3/2 /3 /6 /15 /22 /2 /22 /i255 /19 /16 /30 /i255 /30 /6 /19 /31 /i255 /2 /28 /5 /15 /6 /i255 /19 /2 /2 /5 /16 /2 /15 /3 /16 /24 /i255 /41 /28 /13 /22 /10 /i255 /40 /6 /5 /5 /31/19 /36 /40 /19 /1 /15 /16 /20 /i255/22 /15 /20 /16 /22 /10 /i255 /5 /22 /14 /5 /1 /15 /19 /18 /18 /36 /i255 /15 /18 /18 /13/21/15/16 /19 /2 /5 /30 /i255 /22 /15 /20 /16 /22 /10 /i255 /19 /6 /5 /i255 /16 /3 /2 /i255 /1 /3 /16 /22 /15 /22 /2 /5 /16 /2 /i255 /31 /15 /2 /28 /i255 /12 /13 /14 /5 /6 /2 /15 /16 /3 /66 /22 /i255 /30 /5 /22 /15 /20 /16 /i255 /1 /6 /15 /2 /5 /6 /15 /19 /24 /11 /24 /12 /47 /50/29
/43/5/i255 /4 /5/18 /15 /5 /39 /5 /i255 /2 /28 /19 /2 /i255 /2 /28 /5 /i255 /14 /6 /3 /14 /3 /22 /5 /30 /i255 /40 /6 /5 /5 /31 /19 /36 /i255 /40 /19 /1 /15 /16 /20 /i255 /15 /18 /18 /13/21/15/16 /19 /2 /5 /30 /i255 /22 /15 /20 /16 /22 /i255/21/13/22 /2 /i255 /6 /5 /49 /13 /15 /6 /5 /i255 /12 /47/50/29/i255 /6 /5 /39 /15 /5 /31 /i255 /19 /16 /30 /i255 /14 /13 /4 /18 /15 /1 /3 /13 /2 /6 /5 /19/1 /28 /i255 /2 /3 /i255 /19 /16 /19 /18 /36 /42 /5 /i255 /19 /16 /30 /i255/21/15/2 /15 /20 /19 /2 /5 /i255 /15/21/14/19 /1 /2 /22 /i255 /2 /3 /i255 /2 /28 /5 /i255 /22 /1 /5 /16 /15 /1 /i255 /49 /13 /19 /18 /15 /2 /36 /i255 /3 /40 /i255 /2 /28 /5 /i255 /27 /46 /11 /52 /9 /i255 /1 /3 /6 /6 /15 /30 /3 /6 /24 418
CC 02-07-2023
418 of 491
/0 /1 /2 /3 /4 /5 /2 /6 /2 /3 /i255 /8 /9 /10 /i255 /11 /1 /i255 /12 /6 /1 /2 /6 /i255 /13 /14 /6 /4 /6 /i255 /13 /15 /16 /1 /2 /17 /18 /i255 /11 /1 /19 /14 /16 /20 /11 /1 /21 /i255 /2 /22 /3 /i255 /5 /3 /19 /2 /11 /15 /1 /i255 /6 /14 /15 /1 /21 /i255 /13 /16 /23 /3 /4 /2 /11 /1 /15 /18 /i255 /11 /5 /i255 /3 /14 /11 /21 /11 /24 /14 /3 /i255 /25 /15 /4 /i255 /12 /19 /3 /1 /11 /19 /i255 /26 /11 /21 /22 /27 /6 /17 /20 /3 /5 /11 /21 /1 /6 /2 /11 /15 /1 /i255 /28 /5 /3 /3 /i255 /29 /11 /21 /16 /4 /3 /i255 /30 /31 /32 /i255 /33 /14 /3 /19 /2 /4 /15 /1 /11 /19 /18 /i255 /20 /11 /21 /11 /2 /6 /14 /i255 /6 /1 /20 /i255 /11 /14 /14 /16/34/11/1 /6 /2 /3 /20 /i255 /5 /11 /21 /1 /5 /i255 /19 /14 /16 /2 /2 /3 /4 /i255 /6 /1 /20 /i255 /20 /3 /21 /4 /6 /20 /3 /i255 /35 /11 /5 /16 /6 /14 /i255 /36 /16 /6 /14 /11 /2 /17 /i255 /6 /1 /20 /6 /3 /5 /2 /22 /3/2 /11 /19 /i255 /4 /3 /5 /15 /16 /4 /19 /3 /5 /32 /i255 /0 /37 /8 /9 /10 /i255 /11 /1 /i255 /2 /22 /11 /5 /i255 /5 /3 /19 /2 /11 /15 /1 /i255 /22 /6 /5 /i255 /27 /11 /20 /3 /i255 /5 /22 /15 /16 /14 /20 /3 /4 /5 /18 /i255 /24 /3 /4/34/5/i255 /6 /1 /20 /i255 /2 /4 /3 /3 /5 /i255 /6 /14 /14 /i255 /11 /1 /2 /3 /1 /20 /3 /20 /i255 /2 /15 /i255 /19 /4 /3 /6 /2 /3/i255 /6 /35 /11 /5 /16 /6 /14 /i255/24 /16 /25 /25 /3 /4 /i255 /6 /14 /15 /1 /21 /i255 /2 /22 /3 /i255 /25 /4 /3 /3 /27 /6 /17 /18 /i255 /6 /1 /20 /i255 /14 /11/34/11/2 /i255 /35 /11 /5 /16 /6 /14 /i255 /11 /1 /2 /3 /4 /25 /3 /4 /3 /1 /19 /3 /i255 /25 /4 /15/34/i255/24 /16 /5 /11 /1 /3 /5 /5 /3 /5 /i255 /6 /1 /20 /i255 /16 /4 /24 /6 /1 /i255 /6 /19 /2 /11 /35 /11 /2 /11 /3 /5 /i255 /28 /5 /3/3 /29 /11 /21 /16 /4 /3/i255 /8 /31 /32 /i255 /38 /22 /3 /i255 /11/34/23/6 /19 /2 /5 /i255 /15 /25 /i255 /0 /37 /8 /9 /10 /i255 /25 /6 /19 /11 /1 /21 /i255 /11 /14 /14 /16/34/11/1 /6 /2 /3 /20 /i255 /5 /11 /21 /1 /5 /i255 /5 /22 /15 /16 /14 /20 /i255 /24 /3 /i255 /6 /1 /6 /14 /17 /39 /3 /20 /i255 /11 /1 /i255 /6 /i255 /23 /16 /24 /14 /11 /19 /i255 /13 /33/40/41/i255 /23 /4 /15 /19 /3 /5/5 /32 /29 /11 /21 /16 /4 /3/i255 /30 /42
/29 /11 /21 /16 /4 /3/i255 /8 /42
/38 /22 /6 /1 /43 /i255/17 /15 /16 /i255 /25 /15 /4 /i255 /17 /15 /16 /4 /i255 /6 /2 /2 /3 /1 /2 /11 /15 /1 /18 /44 /6 /1 /11 /i255 /29/11 /5 /19 /22 /3 /4
/12 /6 /1 /2 /6 /i255/13 /14 /6 /4 /6 /i255 /45 /6 /14 /14 /3 /17 /i255 /41 /16 /20 /16 /24 /15 /1 /i255 /12 /15 /19 /11 /3 /2 /17 /33 /1 /35 /11 /4 /15 /1/34/3/1 /2 /6 /14 /i255 /41 /20 /35 /15 /19 /6 /19 /17 /i255 /41 /5 /5 /11 /5 /2 /6 /1 /2 419
CC 02-07-2023
419 of 491
/0
/1 /2 /3 /4 /5 /i255 /1 /4 /7 /8 /3 /9 /4 /10
/11 /8 /7 /12 /13 /14 /15 /16/17/18/19/i255 /21 /22 /23 /24 /24 /25 /24 /26 /i255 /27 /28/29/29/25/30 /30 /25 /28 /24 /i255/31/32/32 /33 /25 /24 /26 /34 /35 /36/37/38/i255 /40 /41 /42 /43 /44 /i255 /45 /46 /47 /48/46 /49 /50 /51 /52 /i255 /53/54 /41 /42 /43 /44 /43 /46 /47 /48 /46 /49/55/48/56/41/57 /47 /58 /54 /51 /56/59 /i255 /i255 /60 /61 /62 /63 /38 /i255 /64 /41 /42 /65 /49 /66 /41 /44 /67 /i255 /68/54 /42 /51 /69 /46 /49 /i255 /70 /67 /i255 /71 /72 /71 /71 /i255 /73 /74 /72 /75 /i255 /76/77/i255 /78 /36 /38 /i255 /79 /41 /49 /54 /44 /i255 /80 /41 /65 /47 /i255 /53/79/80 /41 /65 /47/55/54/65 /81 /46 /49 /42 /57 /52 /51 /58 /51 /49 /48/59 /82 /i255 /83 /57 /41 /52 /48 /i255 /40 /43 /41 /51 /i255 /53/83 /57 /41 /52 /48 /40 /43 /41 /51/55/54/65 /81 /46 /49 /42 /57 /52 /51 /58 /51 /49 /48/59 /82 /i255 /84 /57 /42 /42 /44 /i255/77/51/51 /49 /46 /i255 /53/84/56/51/51 /49 /46 /55/54 /65 /81 /46 /49 /42 /57 /52 /51 /58 /51 /49 /48/59 /82 /i255 /45 /65 /52 /48 /i255/85/46/57 /i255 /53/45/85/46/57/55/54/65 /81 /46 /49 /42 /57 /52 /51 /58 /51 /49 /48/59 /82 /i255 /86 /51 /52 /i255 /87 /51 /69 /46 /49 /42 /i255/85/57/47 /47 /46 /44 /i255 /53/86/85/57/47 /47 /46 /44/55/54/65 /81 /46 /49 /42 /57 /52 /51 /58 /51 /49 /48/59 /82 /i255 /40 /57 /42 /44 /i255 /40 /47 /46 /49 /88 /i255 /53/40 /57 /42 /44 /40 /47 /46 /49 /88/55/54/65/81 /46 /49 /42 /57 /52 /51 /58 /51 /49 /48/59 /i255 /60 /89 /90 /91 /61 /92 /63 /38 /i255 /93 /94 /66 /74 /i255 /80 /47 /41/52 /52 /57 /52 /48 /i255 /40 /51/56/56/57/50 /50 /57 /51 /52 /i255/77/46/46 /42 /57 /52 /48 /i255 /i255
/40 /76 /95 /96 /97 /68 /98 /74/i255 /96 /43 /57 /50 /i255 /46/56/41/57 /47 /i255 /51 /49 /57 /48 /57 /52 /41 /42 /46 /66 /i255 /99 /49 /51/56/i255/51 /65 /42 /50 /57 /66 /46 /i255 /51 /99 /i255 /42 /43 /46 /i255 /51 /49 /48 /41 /52 /57 /100 /41 /42 /57 /51 /52 /58 /i255 /79 /51 /i255 /52 /51 /42 /i255 /54 /47 /57 /54 /88 /i255 /47 /57 /52 /88 /50 /i255 /51 /49 /i255 /51 /81 /46 /52 /i255 /41 /42 /42 /41 /54 /43/56/46/52 /42 /50 /i255 /65 /52 /47 /46 /50 /50 /i255 /44 /51 /65 /i255 /49 /46/54 /51 /48 /52 /57 /100 /46 /i255 /42 /43 /46 /i255 /50 /46 /52 /66 /46 /49 /i255 /41 /52 /66 /i255 /88 /52 /51 /94/i255 /42 /43 /46 /i255 /54 /51 /52 /42 /46 /52 /42 /i255 /57 /50 /i255 /50 /41 /99 /46 /58 /i255 /i255
/45 /46 /47 /47 /51 /i255 /76 /47 /47 /i255 /46 /50 /81 /46 /54 /57 /41 /47/47 /44 /i255 /40 /57 /42 /44 /i255 /40 /47 /46 /49 /88 /67 /i255 /i255 /i255
/80 /47 /46 /41 /50 /46 /i255 /99 /51 /49 /94 /41 /49 /66 /i255 /42 /43/57 /50 /i255 /46 /101/56/41/57 /47 /i255/56/46/50 /50 /41 /48 /46 /i255 /42 /51 /i255 /42 /43 /46 /i255 /80 /47 /41 /52 /52 /57 /52 /48 /i255 /40 /51/56/56/57/50 /50 /57 /51 /52 /67 /i255 /40 /57 /42 /44 /i255 /40 /51 /65 /52 /54 /57 /47 /i255 /41 /52 /66 /i255 /42 /51 /i255 /41 /52 /44 /i255 /51 /52 /46 /i255 /46 /47 /50 /46 /i255 /42 /43 /41 /42 /i255 /57 /50 /i255 /57/52 /102 /51 /47 /102 /46 /66 /i255 /94 /57 /42 /43 /i255 /42 /43 /46 /50 /46 /i255/56/41/42 /42 /46 /49 /50 /i255 /57 /42 /i255 /50/46 /46/56/50/i255 /42 /43 /41 /42 /i255 /42 /43 /57 /50 /i255 /57 /50 /i255 /42 /43 /46 /i255 /i255 /51 /52 /47 /44 /i255 /94 /41 /44 /i255 /42 /51 /i255 /54 /51 /52 /42/41 /54 /42 /i255 /46 /102 /46 /49 /44 /51 /52 /46 /58 /i255 /96 /43 /41 /52 /88 /50 /67 /i255 /i255
/40 /41 /42 /43 /44 /i255 /45 /46 /47 /48 /46 /49 /50 /51 /52 /i255/101 /i255 /103 /72 /70 /101 /71 /104 /75 /101 /72 /103 /105 /72 /i255 /i255 /i255
/i255
/i255 /i255
/i255
/i255
/i255
/101 /101 /101 /101 /101 /101 /101 /101 /101 /101 /i255 /93 /51 /49 /94 /41 /49 /66 /46 /66 /i255/56/46/50 /50 /41 /48 /46 /i255 /101 /101 /101 /101 /101 /101 /101 /101 /101 /i255 /93 /49 /51/56/74/i255 /106 /107 /63 /108 /109 /i255 /111 /61 /112 /113/61 /35 /114 /36 /62 /i255 /53/54 /41 /42 /43 /44 /43 /46 /47 /48 /46 /49/55/48/56/41/57 /47 /58 /54 /51 /56/59 /i255 /79 /41 /42 /46 /74 /i255 /64 /41 /42 /67 /i255 /68 /54 /42 /i255 /70 /67 /i255/71 /72 /71 /71 /i255 /41 /42 /i255 /115 /74 /116 /71 /i255 /76/77/i255 /64 /65 /69 /117 /46 /54 /42 /74 /i255 /87 /46 /74 /i255 /80 /47 /41 /52/52 /57 /52 /48 /i255 /40 /51/56/56/57/50 /50 /57 /51 /52 /i255/77/46/46 /42 /57 /52 /48 /i255 /96 /51 /74 /i255 /53/54 /65 /81 /46 /49 /42 /57 /52 /51 /55/81 /65 /69 /47 /57 /54 /58 /48 /51 /102 /66 /46 /47 /57 /102 /46 /49 /44 /58 /54 /51 /56/59 /i255 /i255
/45 /46 /47 /47 /51 /67 /i255 /i255
/i255
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420
CC 02-07-2023
420 of 491
/0
/1 /i255 /3 /4 /5 /6 /i255 /7 /3 /8 /9 /i255 /10 /5 /5 /11 /9 /5 /i255 /3 /12 /13 /i255 /7 /3 /8 /9 /i255 /7 /3 /13 /i255 /10 /5 /5 /11 /9 /5 /i255 /3 /14 /6 /11 /15 /i255 /15 /7 /9 /i255 /16 /17 /17 /4 /9 /i255 /18 /6/19/17/11 /15 /9 /20 /i255 /21 /i255 /22 /i255 /23 /i255 /24 /3 /25 /10 /4 /10 /15 /26 /i255 /12 /9 /27 /15 /i255 /15 /6 /i255/19/26/i255 /7 /6/19/9/i255 /24 /6 /20 /i255 /26 /9 /3 /20 /5 /i255 /15 /7 /9 /26 /i255 /7 /3 /8 /9 /i255 /14 /9 /9 /12 /i255 /17 /6 /4 /4 /11 /15 /10 /12 /28 /i255 /15 /7 /9 /i255 /7 /6/19/9/5 /i255 /12 /9 /3 /20 /14 /26 /i255 /3 /12 /13 /i255 /1 /i255 /i255 /29 /6 /11 /4 /13 /i255 /4 /10 /30 /9 /i255 /15 /6 /i255 /5 /9 /9 /i255 /15 /7 /9/19/i255/19/6/8 /9 /13 /i255 /15 /7 /10 /5 /i255 /14 /11 /10 /4 /13 /10 /12 /28 /i255 /10 /5 /i255 /31 /6 /12 /9 /13 /i255 /24 /6 /20 /i255 /25 /6/19/19/9/20 /25 /10 /3 /4 /i255 /3 /12 /13 /i255 /20 /9 /5 /10 /13 /9 /12 /15 /10 /3 /4 /i255 /10 /15 /i255 /10 /5 /i255 /12 /6 /15 /i255 /31 /6 /12 /9 /13 /i255 /24 /6 /20 /i255 /10 /12 /13 /11 /5 /15 /20 /10 /3 /4 /i255 /3 /12 /13 /i255 /15 /7 /3 /15 /i255 /10 /5 /i255 /29 /7 /3 /15 /i255 /15 /7 /10 /5 /i255 /21 /i255 /22 /i255 /23 /i255 /32 /3 /25 /10 /4 /10 /15 /26 /i255 /10 /5 /i255 /5 /6 /i255 /17 /4 /9 /3 /5 /9 /i255 /i255 /5 /9 /9 /i255 /29 /7 /3 /15 /i255 /26 /6 /11 /i255 /25 /3 /12 /i255 /13 /6 /i255 /3 /14 /6 /11 /15 /i255 /15 /7 /10 /5 /i255/19/26/i255 /24 /3/19/10/4 /26 /i255 /3 /12 /13 /i255 /1 /i255 /7 /3 /8 /9 /i255 /5 /11 /24 /24 /9 /20 /9 /13 /i255 /4 /6 /12 /28 /i255 /9 /12 /6 /11 /28 /7 /i255 /24 /20 /6/19/i255/15 /7 /9 /10 /20 /i255 /17 /6 /4 /4 /11 /15 /10 /6 /12 /i255 /15 /6 /i255 /15 /7 /9 /i255 /16 /10 /20 /33 /i255/34/3/15 /9 /20 /i255 /3 /12 /13 /i255 /35 /6 /10 /4 /36 /i255 /16 /17 /17 /4 /9 /i255 /10 /12 /5 /15 /3 /4 /4/9 /13 /i255 /3 /i255/19/3/5 /5 /10 /8 /9 /i255 /37 /38 /16 /18 /i255 /5 /26 /5 /15 /9/19/i255 /6 /12 /i255 /15 /6 /17 /i255 /6 /24 /i255 /15 /7 /10 /5 /i255 /14 /11 /10/4 /13 /10 /12 /28 /i255 /5 /6 /i255 /10 /15 /i255 /10 /5 /i255/8 /9 /20 /26 /i255 /9 /8 /10 /13 /9 /12 /15 /i255 /29 /7 /3 /15 /i255 /10 /5 /i255 /28 /6 /10 /12 /28 /i255 /6 /12 /i255 /10 /12 /i255 /5 /9 /25 /20 /9 /15 /i255 /15 /7 /9 /i255 /32 /10 /20 /9 /i255 /23 /9 /17 /3 /20 /15/19/9/12 /15 /i255 /29 /10 /4 /4 /i255 /12 /6 /15 /i255 /3 /25 /15 /i255 /10 /12 /i255 /3/12 /26 /i255 /29 /3 /26 /i255 /15 /6 /i255 /5 /15 /6 /17 /i255 /15 /7 /10 /5 /36 /i255 /1 /12 /i255 /15 /7 /9 /i255 /17 /3 /5 /15 /i255 /15/7 /9 /i255 /39 /16 /16 /40/41/23/i255 /3 /12 /13 /i255 /15 /7 /9 /i255 /42 /43 /16 /i255 /7 /3 /8 /9 /i255 /13 /6 /12 /9 /i255 /12 /6 /15 /7 /10 /12 /28 /i255 /15 /6 /i255 /25 /6 /20 /20 /9 /25/15 /i255 /15 /7 /10 /5 /i255 /17 /20 /6 /14 /4 /9/19/i255/5 /6 /i255 /1 /i255 /29 /10 /4 /4 /i255 /14 /9 /i255 /14 /20 /10 /12 /28 /10 /12 /28 /i255 /15 /7 /10 /5 /i255 /14 /9 /24 /6 /20 /9 /i255 /15 /7 /9 /i255 /18 /10 /15 /26 /i255 /6 /24 /i255 /18 /11 /17 /9 /20 /15 /10 /12 /6 /44 /5 /i255 /18 /10 /15 /26 /i255 /18 /6 /11 /12 /25 /10 /4 /36 /i255 /i255 /i255
/43 /4 /9 /3 /5 /9 /i255 /17 /20 /6 /8 /10 /13 /9 /i255 /19/26/i255 /25 /6 /12 /25 /9 /20 /12 /5 /i255 /15 /6 /i255 /15 /7 /9 /i255 /25 /6/19/19/10/5 /5 /10 /6 /12 /5 /i255 /24 /6 /20 /i255 /15 /7 /9 /10 /20 /i255 /20 /9 /8 /10 /9 /29 /i255/19/9/9 /15 /10 /12 /28 /5 /i255 /15 /7 /3 /15 /i255 /12 /9 /9 /13 /i255 /15 /6 /i255 /14 /9 /i255 /25 /6 /12 /13 /11 /25 /15 /9 /13 /i255 /3 /15 /i255 /18/10 /15 /26 /i255 /37 /3 /4 /4 /i255 /14 /11 /15 /i255 /10 /24 /i255 /26 /6 /11 /i255 /29 /10 /5 /7 /i255 /15 /6 /i255 /7 /3 /8 /9/i255 /15 /7 /9/19/i255/3 /4 /5 /6 /i255 /6 /12 /i255 /15 /7 /9 /i255 /29 /9 /14 /i255 /15 /7 /3 /15 /i255 /10 /5 /i255 /6 /30 /i255 /29 /10 /15 /7 /i255/19/9/36 /i255 /1 /i255 /29/6 /11 /4 /13 /i255 /3 /4 /5 /6 /i255 /4 /10 /30 /9 /i255 /15 /6 /i255 /5 /15 /20 /9 /5 /5 /i255 /15 /7 /3 /15 /i255 /7 /3 /8 /10 /12 /28 /i255/19/9/9 /15 /10 /12 /28 /i255 /6 /24 /i255 /3 /12 /26 /i255 /30 /10 /12 /13 /i255 /9 /5 /17 /9 /25 /10 /3 /4 /4 /26 /i255 /15 /7 /9 /i255 /18 /10 /15 /26 /i255 /18 /6 /11 /12 /25 /10 /4 /i255/19/9/9 /15 /10/12 /28 /5 /i255 /15 /7 /3 /15 /i255 /4 /3 /5 /15 /i255 /4 /3 /15 /9 /i255 /10 /12 /15 /6 /i255 /15 /7 /9 /i255 /9 /8 /9 /12/10 /12 /28 /i255 /13 /6 /9 /5 /i255 /12 /6 /15 /i255 /3 /25 /25 /6/19/6/13 /3 /15 /9 /i255 /3 /4 /4 /i255 /6 /24 /i255 /15 /7 /9 /i255 /17 /11 /14 /4 /10 /25 /44 /5/i255 /12 /9 /9 /13 /5 /i255 /3 /12 /13 /i255 /8 /10 /9 /29 /5 /i255 /17 /4 /9 /3 /5 /9 /i255 /5 /9 /15 /i255 /11 /17 /i255 /3 /i255 /45 /46 /47 /46 /46 /i255 /43/41/i255/4 /10/19/10/15 /36 /i255 /i255 /i255
/1 /i255 /3 /4 /5 /6 /i255 /3 /5 /30 /i255 /15 /7 /3 /15 /i255 /15 /7 /9/i255 /18 /10 /15 /26 /i255 /25 /6 /11 /12 /25 /10 /4 /i255 /6 /4 /13 /i255 /3 /12 /13 /i255 /12 /9 /29 /i255/19/9 /19/14/9 /20 /5 /i255 /25 /6/19/10/12 /28 /i255 /10 /12 /i255 /29 /10 /4 /4 /i255 /20 /9 /25 /9 /10 /8 /9 /i255/19/26/i255 /25 /6/19/19/9/12 /15 /5 /i255 /24 /20 /6/19/i255/15 /7 /10 /5 /i255 /9 /48/19/3/10 /4 /i255/19/9/5 /5 /3 /28 /9 /36 /i255 /49 /7 /9 /5 /9 /i255/19/3/15 /15 /9 /20 /5 /i255 /3 /20/9 /i255 /5 /9 /20 /10 /6 /11 /5 /i255 /3 /12 /13 /i255 /1 /i255 /3 /4 /5 /6 /i255 /7 /3 /8 /9 /i255 /3 /i255 /28 /20 /9 /3 /15 /i255 /13 /9 /3 /4 /i255/19/6/20 /9 /i255 /10 /5 /5 /11 /9 /5/i255 /15 /7 /3 /15 /i255 /1 /i255 /7 /3 /8 /9 /i255 /25 /6 /12 /5 /15 /3 /12 /15 /4 /26 /i255 /14 /9 /9 /12 /i255 /5 /9 /12 /13 /10 /12 /28 /i255 /9 /48/19/3/10 /4 /5 /i255 /15 /6 /i255 /15 /7 /9 /i255 /18 /10 /15 /26 /i255 /3 /12 /13 /i255 /18 /6 /11 /12 /25 /10 /4 /i255 /3 /14 /6 /11 /15 /i255 /15 /7 /3 /15 /i255 /7 /3 /8 /9 /i255 /12 /6 /15 /i255/14 /9 /9 /12 /i255 /20 /9 /25 /15 /10 /24 /10 /9 /13 /36 /i255 /i255
/1 /i255 /3 /5 /30 /i255 /15 /7 /3 /15 /i255 /5 /6/19/9/6 /12/9 /i255 /28 /9 /15 /i255 /14 /3 /25 /30 /i255 /15 /6 /i255/19/9/i255 /16 /35 /16 /43 /50 /i255 /i255
/49 /7 /3 /12 /30 /5 /33 /i255
/18 /3 /15 /7 /26 /i255 /37 /9 /4 /28 /9 /20 /5 /6 /12 /i255/48 /i255 /42 /12 /8 /10 /20 /6 /12/19/9/12 /15 /3 /4 /i255 /42 /12 /24 /6 /20 /25 /9/19/9/12 /15 /i255 /16 /13 /8 /6 /25 /3 /15 /9 /i255 /18 /16 /43 /48 /18 /10 /15 /10 /31 /9 /12 /5 /i255 /16 /28 /3/10 /12 /5 /15 /i255 /43 /6 /4 /4 /6 /15 /10 /6 /12 /i255 /51 /46 /52 /48 /53 /54 /55 /48 /46 /51 /56 /46 /i255 /i255 /i255 /i255
/i255
/i255
/57 /12 /i255 /32 /20 /10 /33 /i255/57 /25 /15 /i255 /58 /33 /i255 /53 /46 /53 /53 /i255 /3 /15 /i255 /54 /47 /46 /46 /i255 /43/41/i255/18 /10 /15 /26 /i255 /6 /24 /i255 /18 /11 /17 /9 /20 /15 /10 /12 /6 /i255 /59/25 /11 /17 /9 /20 /15 /10 /12 /6/60/17/11 /14 /4 /10 /25 /36 /28 /6 /8 /13 /9 /4 /10 /8 /9 /20 /26 /36 /25 /6 /19/61 /i255 /29 /20 /6 /15 /9 /47 /i255 /62 /63 /64 /65 /66 /67/68/69 /i255 /71 /72 /73 /74 /75 /64 /76 /i255 /77 /77 /i255 /67 /73 /i255 /78 /79 /80 /81 /i255/82/83/84/83/i255 /i255 /i255
/i255
/85 /67 /86 /87 /88/89/i255 /73 /76 /74 /63 /75 /90 /64 /i255 /86 /87 /64 /91 /87 /88/89/i255 /73 /92 /87 /65 /i255 /64/84/67/87 /90 /93 /i255 /94 /87 /64 /91 /i255 /87 /73 /i255 /67 /65 /i255 /67 /i255/95/64/75 /i255 /82 /67/89/64 /83 /i255 /i255
/i255
/i255
/97 /98 /99 /100 /100 /101 /100 /102 /i255/104/105/106/106/101/107 /107 /101 /105 /100 /i255/108/109/109 /110 /101 /100 /102 /i255 /111 /112 /109 /107 /113 /99 /114 /115 /i255/116/117/110 /105 /118 /109 /119 /i255 /120 /120 /i255 /99 /110 /i255 /121 /122 /123 /124 /i255 /125 /126/106/126/i255 /127 /128 /i255 /130 /131 /132 /133 /134 /135 /131 /130 /i255 /136 /128 /130 /i255 /135 /137 /133 /134 /i255 /135 /131 /138 /131 /139 /128 /140 /136 /131 /130 /131 /140 /139 /131 /i255/141/131/131 /135 /133 /140 /132 /142 /i255 /143 /138 /131 /144 /134 /131 /i255 /130 /131 /136 /131 /130 /i255 /135 /128 /i255 /135 /137 /131 /i255 /144 /132 /131 /140 /145 /144 /i255 /138 /133 /140 /146 /131 /145 /i255 /147 /131 /138 /128/148/149/i255 /i255 /i255
421
CC 02-07-2023
421 of 491
422
CC 02-07-2023
422 of 491
/0
/1 /2 /3 /4 /5 /i255 /1 /4 /7 /8 /3 /9 /4 /10
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/i255
/104 /79 /88 /96 /81 /86 /81 /84 /99 /105 /i255
/111 /86 /79 /83 /88 /i255 /104 /96 /78/82/79/90 /89 /i255 /i255
/i255
/113 /113 /i255 /i255
/114 /115 /i255 /117 /118 /119 /120 /i255 /120 /121 /115 /122 /118 /123 /122 /i255 /124 /115 /125 /121 /i255 /120 /121 /126 /127 /128 /123 /124 /129 /i255 /130 /126 /123 /121 /115 /131 /115 /132 /122 /i255/133/132/132 /126 /123 /118 /i255 /120 /121 /118 /127 /118 /134 /122 /118 /135 /i255 /128 /125 /122 /115 /136 /128 /122 /126 /123 /i255 /135 /115/137/134/119 /115 /128 /135 /i255 /115 /132 /i255 /122 /117 /126 /131 /i255 /120 /126 /123 /122 /125 /121 /118 /i255 /132 /121 /115/136/i255/122 /117 /118 /i255 /138 /134 /122 /118 /121 /134 /118 /122 /139 /120 /117 /115 /122 /115
/i255
/141 /142 /143 /144/145 /i255 /147 /148 /149/150/143/151 /152/i255 /153 /154 /155/156 /157 /158 /i255 /160 /161 /162 /i255 /163 /162 /164 /154 /157 /160 /157 /158 /i255 /165 /156 /166 /167 /157 /168 /154 /166/i255 /169 /170 /171/172 /173 /i255 /174 /174 /170 /175 /176 /170 /177 /178 /i255 /179 /i255 /180 /166 /167 /167 /161 /181 /154 /154 /168 /182 /156 /155 /155 /183 /184 /154 /166 /180/i255 /185 /186 /187/186 /188 /189 /190 /191 /192 /193 /194 /i255 /196 /197 /i255 /198 /186 /190 /189 /199 /i255 /200 /201 /i255 /202 /189 /200 /191 /186 /203 /191 /192 /193 /194 /i255 /187 /200 /203 /190 /187 /i255 /193 /190 /191 /204 /189 /186 /205 /i255/i255 /206/186/191/i255 /191 /192 /203 /207 /186 /191 /199/i255 /201 /200 /189 /i255 /200 /204 /189 /i255 /208 /190 /191 /204 /189 /186 /209 /199 /i255 /210 /193 /199 /202 /192 /189 /190 /191 /192 /200 /193 /i255 /186 /211 /191 /189 /190 /212 /190 /194 /190 /193 /213 /190 /i255 /200 /193 /i255 /214 /186 /202 /191 /186/215/188/186 /189 /i255 /216 /217 /191 /218/219 /i255 /i255 /i255
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423
CC 02-07-2023
423 of 491
/0
/1 /2 /3 /4 /5 /i255 /1 /4 /7 /8 /3 /9 /4 /10
/11 /3 /12/13/14 /15 /16 /17 /18 /19 /i255 /15 /18 /21 /22 /17 /23 /18 /24 /25 /26 /10 /27 /14 /28 /19 /22 /17 /29 /30 /18 /16 /31 /i255/32/33/34 /35 /21 /36 /17 /i255 /37 /38 /31 /i255 /39 /40 /39 /39 /i255 /37 /40 /41 /38 /38 /i255 /42 /43 /44 /12 /14 /45 /19 /35 /30 /18 /i255 /46 /17 /16
/25 /8 /7 /47 /26 /48 /27 /14/45 /49 /41 /i255/50/19/16 /i255 /30 /23 /30 /24 /51 /34 /i255/52/16/i255 /33 /35/52/52/36/24 /34 /29 /i255/52/18/53 /36 /i255 /23 /34 /i255 /23 /24 /34 /35 /i255 /34 /19 /36 /i255 /54 /22 /21 /55 /23 /33 /i255 /17 /36 /33 /35 /17 /30 /56 /57 /58 /59 /60 /61 /i255 /58 /63 /64 /65 /66 /i255 /67 /68 /69 /i255 /70 /63/67 /68 /68 /59 /68 /71 /i255 /58 /72/73/73/59/74 /74 /59 /72 /68 /i255/73/72/75 /64 /69 /i255 /60 /72 /i255 /76 /77 /77 /78 /i255 /i255
/79 /72 /72 /69 /i255/73/72/65 /68 /59 /68 /71 /i255 /80 /81/72 /69 /67 /82 /i255 /i255
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/93 /64 /74 /60 /82 /i255
/98/99/100 /101 /102 /i255/98/101/104 /105 /100 /106 /101 /107 /i255 /108 /109/110/111/112 /111 /113 /114 /115 /116 /114 /111 /117 /118 /i255 /108 /113 /113 /111 /113 /114 /116 /112 /114 /i255 /120/121/110/110/122/112 /111 /114 /123 /i255 /124 /118 /117 /118 /125 /121 /126/110/118/112 /114 /i255 /127 /123 /115 /116 /128 /127/129/127/122 /126 /118 /115 /114 /111 /112 /121 /130 /121 /115 /131/i255 /132 /133 /134 /135 /136 /i255 /137 /137 /137 /138 /139 /140 /137 /133/i255 /i255
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/141 /142 /143/144/145/i255 /80 /81 /72 /69 /67 /i255 /96 /65 /61/i255 /146 /85 /65 /61 /81 /72 /84 /74 /64/147/64/67 /65 /60 /81 /63 /59 /68 /66 /90 /68 /64 /60 /148 /i255 /i255 /149 /150 /151 /152 /145 /i255 /83 /81 /84 /65 /74 /69 /67 /61 /82 /i255 /153/77 /60 /72 /76 /64 /65 /i255 /154 /155 /82 /i255 /156 /157 /156 /156 /i255 /154 /157 /158 /157 /159 /i255 /160/161/i255 /162 /143 /145 /i255 /58 /59 /60 /61 /i255 /58 /63 /64 /65 /66 /i255 /146 /58 /59/60 /61 /58 /63 /64 /65 /66/147/77/84 /86 /64 /65 /60 /59 /68 /72 /90 /72 /65 /71 /148 /95 /i255 /58 /59 /60 /61 /i255 /72 /85 /i255 /58 /84 /86 /64 /65 /60 /59 /68 /72 /i255 /70 /63 /67 /68 /68 /59 /68 /71 /i255 /58 /72/73/73/59/74 /74 /59 /72 /68 /i255 /146 /70 /63 /67 /68 /68 /59 /68 /71 /58 /72/73/73/59/74 /74 /59 /72 /68 /147/77 /84 /86 /64 /65 /60 /59 /68 /72 /90 /72 /65 /71 /148 /i255 /149 /163 /164 /165 /150 /166 /152 /145 /i255/167/81/61 /i255 /69 /59 /69/68 /168 /60 /i255/73/61/i255 /77 /72/73/73/64/68 /60 /74 /i255/73/67/66 /64 /i255 /59 /60 /i255 /59 /68 /60 /72 /i255 /60 /81 /64 /i255 /86 /84 /76 /63 /59 /77 /i255 /65 /64 /77 /72 /65 /69 /169 /i255 /i255
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/80 /81 /72 /69 /67 /i255
/141 /142 /143/144/145/i255 /80 /81 /72 /69 /67 /i255 /96 /65 /61/i255 /174/73/67/59 /63 /60 /72 /158 /85 /65 /61 /81 /72 /84 /74 /64/147/64/67 /65 /60 /81 /63 /59 /68 /66 /90 /68 /64 /60/175 /i255 /i255 /149 /150 /151 /152 /145 /i255 /88 /84 /68 /69 /67 /61 /82 /i255 /153 /77/60 /72 /76 /64 /65 /i255 /176 /82 /i255 /156 /157 /156 /156 /i255 /154 /158 /157 /157 /i255 /160/161/i255 /162 /143 /145 /i255 /168 /86 /63 /67 /68 /68 /59 /68 /71 /77 /72 /73/73/59/74 /74 /59 /72 /68/147/77/84 /86 /64 /65 /60 /59 /68 /72 /90 /72 /65 /71 /168 /i255 /146/86 /63 /67 /68 /68 /59 /68 /71 /77 /72/73/73/59/74 /74 /59 /72 /68/147/77/84 /86 /64 /65 /60 /59 /68 /72 /90 /72 /65 /71/148 /i255 /177 /166 /145 /i255 /168 /58 /59 /60 /61 /i255 /58 /63 /64 /65 /66 /168 /i255 /146/58/59 /60 /61 /58 /63 /64 /65 /66/147/77/84 /86 /64 /65 /60 /59 /68 /72 /90 /72 /65 /71/148 /i255 /149 /163 /164 /165 /150 /166 /152 /145 /i255 /70 /63 /67 /68 /68 /59 /68 /71/i255 /58 /72/73/73/59/74 /74 /59 /72 /68 /i255 /154 /157 /178 /154 /154 /178 /156 /156 /i255 /160 /71 /64 /68 /69 /67 /i255 /91 /60 /64/73/i255/179 /156 /i255 /171 /72 /60 /i255 /59 /68 /i255 /96 /67 /75 /72 /65 /i255 /72 /85 /i255 /88 /59 /71 /68 /i255 /180 /181 /64/73/86/60 /59 /72 /68 /i255 /i255
/182 /183 /184 /185 /i255 /187 /188 /184 /189 /189 /190 /189 /191 /i255 /192 /193/194/194/190/195 /195 /190 /193 /189 /196 /i255 /i255
424
CC 02-07-2023
424 of 491
/0
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CITY OF CUPERTINO
Agenda Item
22-11872 Agenda Date: 2/7/2023
Agenda #: 17.

Subject: Consider approval of response to 2022 Civil Grand Jury of Santa Clara County Report entitled, “ A House Divided"
Approve response to 2022 Civil Grand Jury of Santa Clara County Report entitled, “A House Divided" CITY OF CUPERTINO Printed on 2/1/2023Page 1 of 1
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CITY ATTORNEY’S OFFICE

CITY HALL
10300 TORRE AVENUE• CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3195 • FAX: (408) 777- 3366
EMAIL: [email protected]
1 CITY COUNCIL STAFF REPORT
Meeting: February 7, 2023
Subject
Consider approval of response to th e 202 2 Civil Grand Jury of Santa Clara County Report entitled “A House Divided: Cupertino City Council an d City Staff ” Recommended Action
Approve the response to the 2022 Civil Grand Jury of Santa Clara County Report entitled “A House Divided: Cupertino City Council and City Staff”
Discussion
On
December 19, 2022, the 2022 Civil Grand Jury of Santa Clara County released a report on various aspects of governance in the City of Cupertino (Attachment A). Topics discussed in the Grand Jury Report include:
• Co
ucilmanic interference and mutual distrust between Council and staff • Failure to provide monthly treasury reports in compliance with Government Code section 41004
• Fiscal and risk management issues
• City staff turnover
• The City’s Ethics Policy
Th
e preparation of monthly treasurer reports was addressed in a separate Grand Jury Report released on December 14, 2022 and in the City’s response to that report dated January 18, 2023.

The
December 19 Grand Jury Report includes the following findings and recommendations:

Fi
nding 1
The City has a culture of distrust between the councilmembers and City staff that is creating dysfunction.
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2 Recommendation 1
The City should develop or acquire a good governance training and development program for both existing and newly elected councilmembers and existing and new staff members to address: (i) their role, responsibilities, and the relevant laws that specify and/or limit their function; (ii) the division of responsibilities between councilmembers and staff as directed by the Cupertino Municipal Code; and (iii) the necessity of morale building to create a stronger, more effective, and respectful relationship between City staff and councilmembers. Recommendation 1 should be implemented by March 31, 2023.

Finding 2
The dysfunction prevalent between the City Council and City staff has negatively impacted City operations, including the continuing loss of skilled and experienced personnel. The City has a reputation of having a difficult work environment, making recruiting of highly qualified applicants difficult.

Recommendation 2
The City should hire a consultant to study staff morale and make recommendations to improve retention of employees and quality of the working environment. To the extent legally permissible, the study and recommendations should be published for public revie w. Recommendation 2 should be implemented by July 31, 2023.

Finding 3
The City has not taken sufficient steps to improve the City’s financial risk profile as recommended by its retained Internal Auditor.

Recommendation 3a
The City should implement the work plan identified in the May 2022 Fiscal Policy Inventory and Gap Analysis Report developed by the City’s internal audit firm, Moss Adams LLP, to address policy and procedural gaps and weaknesses.

Recommendation 3a should be implemented by July 31, 2023.

Recommendation 3b
The City should employ the use of continuing annual internal audits to assess progress in the development and implementation of new or modified policies and procedures to comply with
internal audit risk reduction and mitigation recommendations. Recommendation 3b should be implemented by July 31, 2023.

Finding 4
A comprehensive Code of Ethics not only provides guidance and baseline standards for ethical behavior, it includes sanctions and consequences for 430
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3 deviations from the standard. The City’s Ethics Policy is generic and lacks enforcement provisions and therefore fails to provide a framework to address ramifications for policy violations.

Recommendation 4a
The City should establish an independent Public Ethics Commissi on with guidance from experts in applied ethics, such as the Markkula Center for Applied Ethics at Santa Clara University, to: (i) develop and implement a robust government ethics training program for all councilmembers; and (ii) evaluate a best practices enforceable Code of Ethics and Conduct Policy that governs all councilmembers and appointed officials for consideration by the City Council.

This recommendation should be implemented by March 31, 2023.

Recommendation 4b
The City should reinstate enforcement procedures to enable the City Council and the public to file complaints and testify at public hearings to help remediate ethics violations. This revision should include a procedure for public admonishment, revocation of special privileges, or censure. T his recommendation should be implemented by March 31, 2023.

Recommendation 4c
The City Council should engage a conflict resolution professional to help enhance mutual understanding and respect amongst all stakeholders. This recommendation should be implem ented by January 31, 2023, and should be repeated at least once per year.

Recommendation 4d
The City should publish its current Ethics Policy on the City website by January 31, 2023.

Pursuant to California Penal Code section 933(c), the City must respond to the Grand Jury Report’s findings and recommendations by March 20, 2023. A draft response for the City Council’s consideration is included as Attachment B. The proposed response focuses of the findings and recommendations made by the Grand Jury and does not evaluate the accuracy of other factual conclusions in the Grand Jury Report. Staff seeks Council input into the draft response and regarding implementation of the Grand Jury’s recommendations. With the exception of recommended revisions to the Ethics Policy, much of the content of the recommendations is consistent with policy direction that Council has previously provided or operational actions that have been or will be undertaken by the City Manager. If approved by the City Council, the response to the Grand Jury Report will be submitted to the Presiding Judge of the Santa Clara County Superior Court before the response deadline.

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4 Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

_____________________________________

Prepared by: Christopher D. Jensen, City Attorney
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A - Civil Grand Jury of Santa Clara County Report
B – Draft Response to Civil Grand Jury of Santa Clara County

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Release date here Page 0 of 51

h

A HOUSE DIVIDED:

CUPERTINO CITY COUNCIL AND CITY STAFF
2022 Santa Clara County
Civil Grand Jury
December 19, 2022
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Page 1 of 51 ends
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