CC 05-09-2023
#1
Fact Finding Report
Written Communications
From: Eric Schaefer
To: City Council; Pamela Wu; City Clerk
Subject: Cupertino City Council meeting May 9, 2023 agenda item 1: Barry Chang set the standard Date: Monday, May 8, 2023 1:04:01 PM
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Council members ,
In 2018, then City Council member Barry Chang engaged in "councilmanic" behavior that was more egregious than any of the allegations against current council members Liang Chiao and Kitty Moore:
The former City Attorney of Cupertino, Randolph Hom, filed a claim with the City for wrongful termination, which cited that he was silenced by the City over his objection to the approval of the Vallco project due to numerous violations of state law SB35. Hom's suit included complaints of explicit statements by Councilman Barry Chang, who threatened adverse action against Mr. Hom unless Hom allowed the Vallco Development proposal to be pushed through. The City settled the suit by paying a significant compensation to Hom. Barry Chang represented the council majority opinion regarding Vallco (which included Chang, Vaidhyanathan, and Sinks), and the council took no disciplinary action against Chang.
If the egregious and costly behavior of Barry Chang is a standard for council disciplinary action of its own members for "councilmanic" oversight, then clearly Moore and Chiao merit no disciplinary action.
City Clerk:
Please include this letter as part of the written communication for the City Council meeting agenda item 1 on May 9, 2023.
Thank you for your consideration.
--
Eric Schaefer
Cupertino resident
From: Tracey Edwards
To: Cupertino City Manager"s Office; City Clerk; City Council; Hung Wei; Sheila Mohan; Liang Chao; J.R. Fruen; Kitty Moore; Tracey Edwards
Subject: Public comment on violations of the City of Cupertino Municipal Code and City policies, Council, May 9, Special Meeting
Date: Saturday, May 6, 2023 8:47:58 AM
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Dear Honorable Mayor Hung Wei, Vice-mayor Sheila Mohan, Councilmembers, et al,
Immediately below are the remarks the League plans to make at the Council’s special session on Tuesday, May 9
th.
These remarks will be made on behalf of the League of Women Voters Cupertino-Sunnyvale.
Sincerely
Tracey Edwards
Remarks
My name is Tracey Edwards and I am the co-president of the League of Women Voters Cupertino-Sunnyvale.
It is important to remember why we are here today:
The Santa Clara County Civil Grand Jury received multiple complaints concerning the behavior of the City of Cupertino councilmembers toward City staff.
The complaints were serious enough that the Grand Jury undertook an investigation resulting in the report entitled “A House Divided”.
Some of the Council members raised concerns about the Grand Jury investigative process and accuracy of remarks made in the Grand Jury report.
In response the Council hired an outside attorney to investigate and review the conclusions in the Civil Grand Jury report. Attorney Daube, through her work, confirmed the findings of the Grand Jury.
We should also remember that the Civil Grand Jury is an important County watchdog organization. As an investigative body, the Grand Jury examines complaints about the actions or performance of city, county agencies, or public officials. The Grand Jury exists to ensure that the best interests of Santa Clara county residents are being served.
The City of Cupertino had the right to challenge the findings of the Grand Jury and did through their own independent investigation.
The process has concluded and it is now time to take the appropriate actions to remedy the findings of the Grand Jury as confirmed by the independent investigation.
Rather than complain lets applaud good governance in action. This was a process that demonstrated the most fundamental and critical tenets of good governance; accountability, leadership, integrity, stewardship, and transparency.
We encourage the Council to embrace the recommendations made in the reports and turn their full attention to improving the workings of our city.
These remarks are respectfully submitted by the League of Women Voters of Cupertino- Sunnyvale.
Tracey Edwards
H: +1 408 733 5570
M: +1 408 888 9411
[email protected]
Respect science, respect nature, respect each other.
From: Pamela Hershey
To: Kitty Moore; Liang Chao; City Clerk
Subject: Fwd: Support for Chao and Moore
Date: Monday, May 8, 2023 8:33:14 PM
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
---------- Forwarded message ---------
From: Pam Hershey <[email protected]>
Date: Mon, May 8, 2023 at 8:30 PM
Subject: Re: Support for Chao and Moore
To: Pamela Hershey <[email protected]
>
On Monday, May 8, 2023 at 08:15:27 PM PDT, Pam Hershey <[email protected]> wrote:
On Monday, May 8, 2023 at 07:58:12 PM PDT, Pamela Hershey <[email protected]> wrote:
My name is Pamela Hershey and i have been following the city council and staff for many years. the city council meetings as well. It is a fact that Kitty Moore and Liang Chao have brought a positive change to Cupertino by asking hard questions and by doing intensive research that they shared with the public help our community be safer and healthier.
Cupertino voters elected Council Members Moore and Chao because they study the issues, ask the questions, and
consider the options that residents care about most. By asking questions it ensures that all options and views are on the table . To me that what I would want my representative to do in order to make an informative opinion.
For example, the site at Vallco has been listed as a
hazardous waste site by the EIR but the city staff chose to ignore it. Actually, I live in very close proximity to Vallco I am so thankful for Kitty Moore's persistence and research to take action for the safety of the residents. Since the public was misled into believing that Vallco had a clean bill of health yet behind the scenes, the staff was doing a Pier Review
exploring the contamination. It was kept a secret for two years. I am not sure why the staff allowed the developer to demolish and move contaminated soil before final results were received, Therefore, it the removal of this contaminated soil put myself my and family in harms way as we had to breathe it for many months.
Also, hoping we do not have any health issues because we were not warned about this toxic site before they demolished or ever.
I truly have to commend and thank Kitty Moore and
Liang Chao for being resident -focused council members.
A concerned resident since 1967
Pamela Hershey
From: Rhoda Fry
To: City Clerk; City Council
Subject: NEW!!!: For City Council 5/9/2023 Agenda Item 1 Date: Tuesday, May 9, 2023 1:00:54 PM
Attachments: Revised Presentation Rhoda Fry 2023-05--09.pdf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Hi City Clerk –
This is my new and improved version for tonight.
Please discard the previous one, if possible.
Looking forward to your helping display my slides.
Thank You,
Rhoda Fry
From: Rhoda Fry <[email protected]>
Sent: Tuesday, May 9, 2023 8:46 AM
To: 'City Clerk' <[email protected]>; '[email protected]' <[email protected]> Subject: For City Council 5/9/2023 Agenda Item 1
Dear City Clerk,
Please include the contents of the attached for public comment on City Council 5/9/2023 Agenda Item 1.
Please also show these slides this evening when it is my turn to speak (I might split the deck with another speaker as well) – you are a good page turner!
Maybe tonight you can tell me how I can do this on my own in the future.
Grateful,
Rhoda Fry
Instead of squabbling,
Set your differences aside
and Work on the Budget
Remember Who You Work for - The Citizens of Cupertino
Image from Page 9 of the Budget
Citizens of
Cupertino
After 4 years of Stellar Service
to our Community,
all of a sudden, Councilmembers
Chao and Moore are being vilified
WHY?
We Elected Them to:
• Think Independently
• Ask Tough Questions,
• and Get Results
They Have Succeeded
As chair of our Planning Commission,
I have advocated for residents’
interests. Applying my civil
engineering background to complex
planning issues, I have brought
accountability through training, policy
changes and thorough evaluations of
statutory requirements.
• Residents Before Special Interests
• Integrity First
• Residents are the Drivers
• Family and Schools are the Center
• Healthy Environment
0 Civil Engineer (PE, Licensed in California)
Paralegal and Environmental Studies (145 hours)
Appointed Cupertino Planning Commission Chair
• Santa Clara Valley Transportation Authority Policy Advisory Committee (elected by peers to leadership positions)
• League of California Cities - Peninsula Division
• Silicon Valley Regional Interoperability Authority
• Santa Clara County Cities Association
• Cupertino: Audit Committee, Environmental Review
Committee, Legislative Review Committee
Computer Science Ph.D. Princeton University
Computer Engineering MS National Chiao Tung University
Elected Cupertino Union School District Board Member
• League of California Cities - Peninsula Division
• School Partnership and School Liaison (CUSD, FUHSD, De Anza • Santa Clara County Cities Association
• Santa Clara/Santa Cruz Airport/Community Aircraft Noise • Cupertino: Audit Committee, Legislative Review Committee, Disaster Council, Economic Development Committee,
Environmental Review Committee
QUALIFIED, EXPERIENCED, EFFECTIVE COUNCIL MEMBERS
The House Divided Report Reiterated Finance Troubles in Moss-Adams Report • The City has weak or non-existent internal financial controls • Deficiencies have existed for several years and pose potentially serious operating and financial risks to the City • The Audit Committee Plan needs to be “vetted” by the Council Report Recommends Vetting of City Staff Work!!!
• Vetted = Critically Review and Evaluate for Official Approval • Different viewpoints and double-checking by
Councilmembers and Residents creates a better outcome
Our City is Better Because Chao and Moore Asked Questions “gray area between information requests”
• Pressed for compliant City financial reporting
• Discovered payments for services that had not been rendered • Prevented construction on sites that are not suitable for habitation The LAST THING a Board Needs is YES MEN
We Need to Strike a Balance . . .
How Did We Get Here?
Failure to Communicate Effectively and Resolve Differences in a Timely Manner “City staff’s disregard of this City ordinance [for mandatory financial disclosures] in the past added to the perception of City Council that staff was not competently fulfilling their job responsibilities” Why Didn’t Human Resources or City Manager Address Alleged Communications Issues Timely? • Reports miss the fact that COVID created a challenging work environment for all • Reports miss the fact that Staff knew in December 2021 that City was facing financial difficulty, signaling that it could be a good time to find other work • Report mentions that only one person who left took a lesser job; this implies others who left fared better February 21, 2023, Councilmember Fruen motioned for a new work item:
“The City Attorney will investigate and report back on other violations of the Municipal Code with respect to council-staff and commissioner-staff relations so that the City Council may establish policy
to correct or prevent such violations in future
Civil Grand Jury: “Few, if any, Recommendations Implemented” • Until Kitty Moore repeatedly raised concerns, financial reports were not posted timely • Violation of Cupertino Municipal Code 2.24.030 and California Government Law 41004 • Did the City Attorney refer the City Treasurer to the District Attorney? Of course not, that would be counterproductive
• We get along; we fix things
“Few, if any, of those recommendations [by the Moss Adams Financial Audit] have been implemented” “Fiscal and financial risk management oversight is a key area of responsibility of every city council. Good governance requires that city councils routinely review the financial operations of the city, identify areas of weakness and/or risk, and oversee effective policies and procedures for implementation by city managers.” Establish Policy or Punitive Measures?
Fruen Motion: “City Council May Establish Policy”
1. Avoid “governance by email.” This requires bilateral cooperation and response with candor. Q&A reports with packets are helpful. Written record helps to clarify.
2. Improve Relations Highly recommend Arbinger Training
3. Rely on Staff Decisions made in a vacuum are doomed for failure. It is okay to double-check and communicate findings appropriately. 'Yes Men' Hinder Success. Relying on staff got us the Public Storage building that fails to comply with the N. De Anza Special Area of the General Plan and got us hideous signage that fails to comply with the Municipal Code. And no oversight of hazmat at Vallco.
4. Use City Work Program Note, Councilmember Fruen motioned for new work program item. OK?
5. Develop Ethics Code
6. Rosenberg’s Training
7. Explore Ways for Councilmembers to obtain the information they need to make informed decisions Mostly Agree with Recommendations
Beautiful Things Can Happen when People Work Together
Citizens of Cupertino
City CouncilCity Staff
We need all 5 Councilmembers to work
together. Each brings a unique set of skills.
Chao and Moore were elected for their
attentiveness to Cupertino Resident needs
and commitment to understanding the issues
thoroughly before recommending policy.
• FOCUS ON STRENGTHS
• RESOLVE WEAKNESSES
• BUILD TRUST CIRCLE BETWEEN
CITIZENS, COUNCIL & STAFF
Fix City Hall “City staff voiced concern that
their workplace, City Hall, had not been
renovated and seismically improved”
2020-2022 Council set City Hall renovation
plans in motion, only to have them stalled by
the 2022-2024 Council.
Arbinger
Institute
Training
From: Rhoda Fry
To: City Clerk; City Council
Subject: Another item for 5/9/2023 agenda item #1
Date: Tuesday, May 9, 2023 2:07:42 PM
Attachments: Show Me the Money - Financial Transparency Needed Grand Jury Report.pdf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Dear City Clerk,
Please included the text of the attached for public comment for agenda item #1 5/9/2023 This report demonstrates Councilmember Moore’s contributions to the betterment of our City by asking questions
Sincerely,
Rhoda Fry
Release date here Page 0 of 22
SHOW ME THE MONEY:
FINANCIAL TRANSPARENCY NEEDED
2022 Santa Clara County
Civil Grand Jury
December 14, 2022
SHOW ME THE MONE Y: FINANCIAL TRANSPARENCY NEEDED
TABLE OF CONTENTS
GLOSSARY AND ABBREVIATIONS ...................................................................................... 2 SUMMARY ................................................................................................................................... 3 BACKGROUND ........................................................................................................................... 4 METHODOLOGY ....................................................................................................................... 5 INVESTIGATION ........................................................................................................................ 6 CONCLUSION ........................................................................................................................... 11 FINDINGS AND RECOMMENDATIONS ............................................................................. 12 REQUIRED RESPONSES ......................................................................................................... 15 APPENDIX ................................................................................................................................. 16 REFERENCES ............................................................................................................................ 19
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GLOSSARY AND ABBREVIATIONS
Government Code, Section
41004
California Government Code section 41004 states :
“Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and
accounting of all receipts, disbursements, and fund
balances. The city treasurer shall file a copy with the legislative body.”
Treasurer’s Reports
The reports required by Government Code section 41004
may have various styles and titles. For purposes of this report, the Civil Grand Jury will refer to these reports throughout as "treasurer's reports."
Charter City
Article XI, section 3(a) of the California Constitution authorizes the adoption of a city charter and provides that the charter has the force and effect of state law. Article XI, section 5(a), the "home rule" provision, grants to charter cities the ability to govern over "municipal affairs."
There are six c harter cities in Santa Clara County: San José, Palo Alto, Santa Clara, Sunnyvale, Gilroy, and
Mountain View.
General Law City
A general law city may only have a form of government
authorized by state general law . A city that has not
adopted a charter is bound by the state’s general laws even with respect to municipal affairs.
There are nine general law cities and towns in Santa Clara County: Los Altos, Los Altos Hills, Los Gatos , Milpitas, Campbell, Monte Sereno, Cupertino, Saratoga and
Morgan Hill. The scope of this investigation is limited to general law cities.
GAAP Generally Accepted Accounting Principles : a set of accounting rules and s tandards established by the
accounting industry.
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SUMMARY
General law cities in California are required to comply with California Government Code section 41004 (Section 41004), which states, “at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.
The city treasurer shall file a copy with the legislative body.” The benefit of the law is to ensure financial accountability and public transparency as well as to foster better fiscal affairs. Treasurer's reports provide city c ouncils with timely and accurate financial information necessary to make reliable and sound decisions.
The 2022 Santa Clara County Civil Grand Jury (Civil Grand Jury) found that there is widespread noncompliance with this state requirement throughout Santa Clara County (County) by the general law cities . As of the date of this report, six of the nine general law cities 1 in the County are noncompliant with this state law: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno. Additionally, the City of Cupertino was initially noncompliant until the city took corrective action during the Civil Grand Jury’s investigation. The City of Saratoga and City of Morgan Hill were the only two cities compliant prior to the investigation.
Based on responses from city officials, the Civil Grand Jury determined that there is a widespread misunderstanding among these general law cities in the County regarding Section 41004 reporting requirements. The Civil Grand Jury recommends that the noncompliant cities – Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno – comply with Section 41004.
1 The Town of Los Altos Hills and the Town of Los Gatos are general law cities.
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BACKGROUND
The State Legislature established the office of c ity treasurer by enactment of California Government Code, Title 4 - Government of Cities, Division 3 - Other Officers, Chapter 3 - City Treasurer. The statutory duties for city treasurers may generally be found in the following sections:
Section 41001: The city treasurer shall receive and safely keep all money the treasurer receives.
Section 41002: (a) The city treasurer shall comply with all laws governing the deposit and securing of public funds and the handling of trust funds in their possession; and (b) if the city has issued bonds, the city treasurer shall use a system of accounting and auditing that adheres to generally accepted accounting principles.
Section 41003: The city treasurer shall pay out money only on warrants signed by legally designated persons.
Section 41004: Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.
The city treasurer shall file a copy with the legislative body.
Pursuant to California Government Code section 36502, the city treasurer is an elective office.
California Government Code section 36508 and California Elections Code section 9222 permit cities to submit to the electors the question of whether the city treasurer position should be an appointive office. In that instance, the financial duties assigned by the state statutes to the city treasurer are transferred from an elected tr easurer to an appointed officer if approved by the electorate. Only one general law city in the County, Morgan Hill, continues to have an elected city treasurer, who serves for four years. All other cities in the County have opted to assign city treasurer duties to senior administrative staff.
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METHODOLOGY
Upon receiving a complaint regarding G overnment Code section 41004 noncompliance in Cupertino, the Civil Grand Jury decided to expand the investigation to review all nine general law cities in the C ounty: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, Monte Sereno, Cupertino, Saratoga, and Morgan Hill. From March to August 2022, the Civil Grand Jury began the process by polling these Cities to determine if they produced treasurer’s reports.
The Civil Grand Jury took the following steps:
• Contacted a total of 22 officials across nine cities who were responsible for tasks relevant to the topic of this report.
• Reviewed relevant sections of the California Government Code, California Elections Code, and examined the ordinances, policies, and memos of each city relevant to their city treasurer duties.
• Reviewed published city council and city committee agendas relevant to Section 41004.
• Reviewed other relevant city documents, including but not limited to financial audits, city organizational charts, and relevant job descriptions.
• Verified the six most recent treasurer’s reports of each city, if submitted.
The Civil Grand Jury inspected the contents of each report to verify the inclusion of the required elements: monthly disbursements, receipts, and fund balances. The Civil Grand Jury also determined whether the reports were published at least once each month to be compliant with Section 41004.
It should be noted that most cities do not call their report “Treasurer’s Report.” Appendix A provides links to examples of compliant Section 41004 reports, showcasing variations in terms of report name, style, layout, and appearance.
The Civil Grand Jury used the 2011-2012 Solano County Civil Grand Jury report entitled “City Treasurer Functional Review” as a reference for this report.
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INVESTIGATION
All interviews and email correspondence were designed to determine if general law cities complied with Section 41004. To be deemed compliant, a city must produce a financial document at least once each month that details all of the following: monthly disbursements, receipts, and fund balances – and must be filed with the legislative body. Six months of repor ts were requested to verify an existing track record. Data collection and verification took place from March to July 2022.
The results of this investigation are depicted in Table 1 below.
Table 1. Section 41004 Compliance Among Nine General Law Cities
City/Town Compliant Noncompliant
Los Altos X
Los Altos Hills X
Los Gatos X
Milpitas X
Campbell X
Monte Sereno X
Cupertino X*
Saratoga X
Morgan Hill X
*During the investigation, Cupertino started complying with Section 41004.
There are a number of reasons for cities’ noncompliance:
• Some cities were under the impression that the Section 41004 mandate was a discretionary guideline.
• Others adopted the practice of other cities that did not produce the requisite monthly reports.
However, the primary error among the cities was that they produced abbreviated reports that omitted required information such as receipts, disbursements, and fund balances. Some of the deficient reports lacked substance, with abbreviated information presented without context or details.
The Civil Grand Jury believes there is no fiscal impact involved in complying with Section 41004.
Outside resources should not be required since existing staff already make some financial reports, collect this type of data, and should be able to produce treasurer’s reports. Therefore, each of the deficient cities can be compliant with minimal effort or burden.
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Noncompliant Cities and Towns
Los Altos
The City of Los Altos does not have an elected city treasurer. Further, the Los Altos Municipal Code does not specifically state which official performs the duties of a city treasurer . Los Altos Municipal Code Section 2.01.060, however, provides that the city manager is the administrative head of the city and is specifically empowered “keep the council at all times fully advised as to the financial condition and needs of the city.” In the City of Los Altos, monthly treasurer’s reports are not prepared and submitted to the city clerk in accordance with Section 41004.
At the time of the Civil Grand Jury inquiry in June 2022, the City of Los Altos did not submit any treasurer’s reports. According to the C ity of Los Altos , Government Code section 37208 indemnified them from the Section 41004 mandate. However, the language of Government Code Section 37208 refers to payroll warrants or checks and makes no mention of the reporting required by Section 41004, which requires a report of “receipts, disbursements and general fund balances.” Moreover, the language of Government Code Section 37208 neither excuses a city from complying with Section 41004 nor makes any reference to Section 41004.
Further, the city erroneously noted that its Generally Accepted Accounting Principles (GAAP) policy on financial reporting excused noncompliance with Section 41004 reporting requirements.
In 2015, t he city adopted a “Financial Policy” that reads in part, “The city’s accounting and financial reports are to be maintained in accordance with GAAP. ” GAAP accounting does not address the Section 41004 mandated requirements.
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The Civil Grand Jury determined that the C ity of Los Altos does not produce t reasurer’s reports and thus is noncompliant.
Los Altos Hills
The Town of Los Altos Hills does not have an elected city treasurer. The town’s Municipal Code is silent on who performs the duties of the t reasurer; however, the Civil Grand Jury learned that the treasurer responsibilities fall to the director of administrative services.
The Civil Grand Jury received monthly treasurer ’s reports in June 2022. Upon inspection, however, they contained only disbursements and lacked receipts as well as fund balances; thus the reports are incomplete and noncompliant.
Los Gatos
The Town of Los Gatos does not have an elected city treasurer. The town’s Municipal Code Section 2.30.035 delegates the responsibility of the treasurer and the ability to assign those duties to the town manager. The director of finance is responsible for the town’s financial matters. The Town of Los Gatos produces quarterly reports, not monthly reports as required by Section 41004.
While the disbursements, receipts, and fund balances are in the reports, they must be published at least once each month to comply with Section 41004. Because the production intervals are quarterly, the Town of Los Gatos is not in compliance.
Milpitas
The City of Milpitas does not have an elected city treasurer. Milpitas Municipal Code section VI- 1-3.02 vests the duties of a city treasure r with the city manager, who is empowered to appoint a city treasurer pursuant to Section VI-1-3.04. In the City of Milpitas, the finance director produces weekly disbursement reports, quarterly receipt and investment reports for the general and special districts’ funds, and annual reports for all other reporting.
At the time of inquiry in June 2022, the Civil Grand Jury noted well -prepared reports. However, the frequency of report submission does not meet Section 41004 criteria, which requires monthly reports. Reports showing all receipts, disbursements, and fund balances must be filed with the city clerk at least once each month. Due to submission infrequency, the C ity of Milpitas is not in compliance.
Campbell
In November of 2010, voters in the C ity of Campbell approved Measure O, which changed the office of the city treasurer (and city clerk) from an elected to an appointed office. The City of
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Campbell’s Municipal Code is silent on who has officially assumed those duties.2 The Civil Grand Jury learned that the city’s finance director has the responsibilities of a treasurer and oversees the preparation of financial reports. The reports are prepared by the accounting clerk, reviewed by the finance manager and the finance director, and approved by the city manager for inclusion in the council packet.
At the time of inquiry in June 2022, 21 reports were submitted. The submitted documents had no payroll records and accounts payable balances with paid or disbursed funds. Additionally, the required information was not published at least once each month.
The City of Cam pbell’s submitted reports do not comply with S ection 41004 because disbursements, receipts, and balances are not filed at least once each month.
Monte Sereno
The City of Monte Sereno does not have an elected city treasurer. The Monte Sereno Municipal Code section 2.04.010 designates the c ity manager as the director of finance and tasks the c ity manager with “performing all duties of City treasurer as set forth in Government Code sections 41000 et seq.” At the time of inquiry in June 2022, six treasurer ’s reports were received by the Civil Grand Jury. While the reports did contain the required fund balances, the receipts and disbursements were not compliant with the Section 41004 requirement.
Compliant Cities
Cupertino
The City of Cupertino does not have an elected city treasurer. The City of Cupertino’s Municipal Code section 2.24.030 states:
The treasurer shall make monthly reports which conform to the requirements of Government Code Section 41004. Said reports shall be delivered to the City Council, city manager and made available for review by such other persons who may so request.
Until 2022, no staff member for the City of Cupertino had been preparing and delivering a monthly treasurer’s report to the Cupertino City council. However, during the Civil Grand Jury's
2 The City of Campbell’s Municipal Code does not appear to have been updated. The City of Campbell’s Municipal Code section 2.08.010 still states that the elected officers shall be those designated by general laws, which includes a city treasurer. Further, the code has other references to an elected city treasurer. (See Sections 2.16.040 [city treasurer compensation] and 2.16.010 [establishment of salaries].)
SHOW ME THE MONE Y: FINANCIAL TRANSPARENCY NEEDED
investigation, the belated monthly t reasurer’s reports for January and February 2022 were published and placed on the Cupertino Audit Committee agenda.
The Civil Grand Jury recognizes the action taken by the City of Cupertino as soon as it was brought to their attention. The City of Cupertino is now compliant with Section 41004 as of March 2022, despite the stated history of not submitting the required reports.
Saratoga
The City of Saratoga does not have an elected city treasurer. The City of Saratoga Municipal Code section 2-20.035 states that the city manager shall serve as the city treasurer and be responsible for “other duties and responsibilities as required by law to be performed by the City Treasurer.” Thus, the city manager is responsible for the preparation and submission of monthly treasurer’s reports.
The Civil Grand Jury verified in June 2022 that regular monthly treasurer’s reports are filed with the City of Saratoga and are fully compliant with Section 41004. These reports can also be found by the public on the city’s website. An example is shown in Appendix A.
Morgan Hill
The City of Morgan Hill has an elected city treasurer. The treasurer, in conjunction with the finance director, prepares the treasurer’s reports.
The Civil Grand Jury verified in June 2022 that regular monthly treasurer’s reports are produced.
The reports contain all the required components of disbursements, receipts, and fund balances.
Thus, the C ity of Morgan Hill is compliant with Section 41004. A compliant Morgan Hill treasurer’s report is shown in Appendix A.
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CONCLUSION
Within the County, there is widespread noncompliance with California Government Code section 41004 by the general law cities. The Civil Grand Jury commends the cities of Saratoga and Morgan Hill for being in full compliance and notes the City of Cupertino’s quick action to become compliant. The Civil Grand Jury recommends that the noncompliant cities of Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno comply with Section 41004. This is to be done by producing treasurer’s reports at least once each month containing the required disbursements, receipts, and fund balance information. The benefit of implementing this recommendation overshadows any limited cost impact since existing staff could compile the report. In short , there is great benefit in producing these reports , as they improve financial transparency to the residents of the cities.
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FINDINGS AND RECOMMENDATIONS
It is recommended that noncompliant cities start producing treasurer’s reports as required by law.
Some cities produce abbreviated information that does not include requisite financial information as defined in state Government Code section 41004. Some cities produce requisite reports, but not on a monthly basis.
Finding 1
The City of Los Altos is not submitting monthly treasurer’s reports in compliance with California Government Code section 41004.
Recommendation 1
The City of Los Altos should comply with Government Code section 41004 by submitting monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances and by filing those reports with the city. This recommendation should be implemented by March 15, 2023.
Finding 2
The City of Los Altos does not produce t reasurer’s reports in compliance with California Government Code section 41004. The reason provided for non- compliance was that the City of Los Altos’ financial policy does not require the preparation and submission of treasurer’s reports.
It is an erroneous belief that internal policies excuse compliance with Government Code section 41004.
Recommendation 2
The City of Los Altos should amend its financial policy to require that monthly treasurer’s reports be prepared and submit ted in accordance with California Government Code section 41004 by March 15, 2023.
Finding 3
The Town of Los Altos Hills produces monthly treasurer’s reports but the content of those reports lacks monthly disbursements, receipts, and fund balances required by California Government Code section 41004.
Recommendation 3
The Town of Los Altos Hills shoul d update their existing monthly reports to include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 4
The Town of Los Gatos produced reports that contain the required content but does not produce the treasurer’s reports on a monthly basis as required by California Government Code section 41004.
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Recommendation 4
The Town of Los Gatos should produce its reports on a monthly basis to comply with California Government Code section 41004 by March 15, 2023.
Finding 5
The City of Milpitas does not produce monthly t reasurer’s reports as required by California Government Code section 41004.
Recommendation 5
The Civil Grand Jury recommends that the C ity of Milpitas comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 6
The City of Campbell does not produce monthly t reasurer’s reports as required by California Government Code section 41004.
Recommendation 6
The City of Campbell should comply with California Government Code section 41004 by producing monthly t reasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 7
The City of Monte Sereno does not produce monthly treasurer’s reports as required by California Government Code section 41004.
Recommendation 7
The City of Monte Sereno should comply with California Government Code section 41004 by producing monthly t reasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 8
When the Civil Grand Jury began this investigation, the City of Cupertino was not in compliance with California Government Code section 41004. However, s tarting in March 2022, the C ity of Cupertino began producing treasurer’s reports compliant with Section 41004.
Recommendation 8
The City of Cupertino should maintain compliance with California Government Code section 41004. Continued compliance is recommended.
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Finding 9
The Civil Grand Jury commends the C ity of Saratoga for producing monthly treasurer’s reports that include disbursements, receipts, and fund balances. The City of Saratoga is in full compliance with California Government Code section 41004.
Recommendation 9
No recommendation.
Finding 10
The Civil Grand Jury commends the elected city treasurer for producing monthly t reasurer’s reports that include monthly disbursements, receipts, and fund balances. The City of Morgan Hill is in full compliance with California Government Code section 41004.
Recommendation 10
No recommendation.
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REQUIRED RESPONSES
Pursuant to California Penal Code section 933(b) et seq. and California Penal Code section 933.05, the Civil Grand Jury requests responses from the following governing bodies:
Responding Agency Findings Recommendations
City of Los Altos 1, 2 1, 2
Responding Agency Findings Recommendations
Town of Los Altos Hills 3 3
Responding Agency Findings Recommendations
Town of Los Gatos 4 4
Responding Agency Findings Recommendations
City of Milpitas 5 5
Responding Agency Findings Recommendations
City of Campbell 6 6
Responding Agency Findings Recommendations
City of Monte Sereno 7 7
Responding Agency Findings Recommendations
City of Cupertino 8 8
Responding Agency Findings Recommendations
City of Saratoga 9
Responding Agency Findings Recommendations
City Treasurer of Morgan Hill 10
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APPENDIX A: EXAMPLES OF COMPLIANT TREASURER’S
REPORTS
On the following pages are two examples of monthly treasurer’s reports that contain the required disbursements, receipts, and starting and ending f und balances and are therefore compliant with California Government Code section 41004. They are included to show that there are various names and formats that the reports may take. Following the examples are links to the full reports for ease of access.
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Example 1. Page 3 of 7 from Saratoga August 2022 Treasurer’s Report
https://legistarweb-
production.s3.amazonaws.com/uploads/attachment/pdf/1578630/Treasurer_Report_for_August_ 2022.pdf
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Example 2. Page 12 of 21 from Morgan Hill March 2022 Financial and Investment Report
https://www.morgan-hill.ca.gov/DocumentCenter/View/40944/March-2022-Financial-and- Investment-Report-PDF
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REFERENCES
Bibliography
Campbell City Council meetings: December 7, 2021-June 7, 2022. Regular agenda item from the Finance Department, titled Approving Bills and Claims. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: February 1, 2022. Regular agenda item from the F inance Department, titled Investment Report – Quarter Ending December 2021. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: May 3, 2022. Regular agenda item from the Finance Department, titled Investment Report – Quarter Ending March 2022. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meetings: December 7, 2021 – June 7, 2022. Regular agenda item from the Finance Department, titled Monthly Investmen t Transactions Report. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: April 25, 2022, Study Session Meeting of the Campbell City Council. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
City of Cupertino, A- Payments to Chamber Jan 2015- Mar 2022. Report, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Cupertino Administrative Services Department Finance Division, Fiscal Year 2019- 2020 Comprehensive Annual Financial Report. https://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Cupertino, Audit Committee meeting, May 23, 2022. https://cupertino.legistar.com/MeetingDetail.aspx?ID=923553&GUID=0C41F4A6-93D2-4B90- AAEB-7E5FF0F1EF8C&Search= (Accessed November 28, 2022).
City of Cupertino, B- Festivals – City Fees Waived & City Expenses. Report, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting , April 21, 2022: March 2022 Report of City -wide Fund Balances/Net Position. http://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting April 21, 2022: March 2022 Report of City -wide Receipts, Disbursements, and Cash Balances Cash Investments. htt p://cupertino.legistar.com/ (Accessed November 28, 2022).
SHOW ME THE MONE Y: FINANCIAL TRANSPARENCY NEEDED
Cupertino City Council meeting, April 25, 2022. Administrative Services Department, Audit Committee Staff Report for March, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting, May 3, 2022. City Manager’s Office, City Council Staff Report. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting, May 19, 2022. Amended Agenda of the Cupertino City Council. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino Office of the City Clerk, Notice of Adjournment of the May 17, 2022. Notice, May 17, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino, Payment Register. Report, December 21, 2021. http://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino, Resolution NO. 22- 015. Resolution, 2022. http://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Lancaster, Excerpt from A Quick Summary for the Press and Researchers, https://www.cityoflancasterca.org/home/showpublisheddocument/10103/635775792210230000 (Accessed November 28, 2022).
Los Altos City Council meetings, Januar y, 2022 – May, 2022. Monthly Disbursement Listing. https://www.losaltosca.gov/calendar/month?field_microsite_tid=2131&field_microsite_tid_1=Al l (Accessed November 28, 2022).
Los Altos City Council meeting, May 24, 2022. Quarterly Investment Portfolio Report – Quarter Ended March 31, 2022. https://www.losaltosca.gov/citycouncil/page/city-council-meeting-155 (Accessed November 28, 2022).
Los Altos City Council meeting, March 8, 2022. Quarterly Investment Portfolio Report – Quarter Ended December 31, 2021. https://mccmeetingspublic.blob.core.usgovcloudapi.net/losaltosca- meet-419c5823741c494d9706451908d3061f/ITEM-Attachment-001- 0979a9a16c5c4dc898b8e8d7d4d4a6e1.pdf (Accessed November 28, 2022).
Los Gatos Town Council meeting, February 15, 2022. Second Quarter Investment Report (October through December 2021) for Fiscal Year 2021/22.
https://mccmeetings.blob.core.usgovcloudapi.net/losgatos-pubu/MEET-Packet- 94e86df454424b8b95ccc3f6eff96e41.pdf (Accessed November 28, 2022).
Los Gatos Town Council meeting, May 17, 2022. Third Quarter Investment Report (January through March 2022) for Fiscal Year 2021/22
https://mccmeetings.blob.core.usgovcloudapi.net/losgatos-pubu/MEET-Packet- 997ea555609c4af9b94eeb28b34fc7e3.pdf (Accessed November 28, 2022).
Monte Sereno City Council meetings: December 28, 2021 – June 3, 2022. Regular agenda item from the Finance Department submitting the monthly Treasurer’s Report. https://montesereno.civicweb.net (Accessed November 28, 2022).
SHOW ME THE MONE Y: FINANCIAL TRANSPARENCY NEEDED
City of Morgan Hill Finance Division, Monthly Financial and Investment Reports . March 31, 2022. https://www.morgan-hill.ca.gov/DocumentCenter/View/40944/March-2022-Financial-and- Investment-Report-PDF (Accessed November 28, 2022).
City of Saratoga Administrative Services, Treasurer’s Report for the Month Ended August 31, 2022. Final Report, October 5, 2022. https://legistarweb- production.s3.amazonaws.com/uploads/attachment/pdf/1578630/Treasurer_Report_for_August_ 2022.pdf (Accessed November 28, 2022).
Solano County 2011-2012 Grand Jury, City Treasurer Functional Review . Final Report, January 12, 2012. https://solano.courts.ca.gov/wp-content/uploads/2020/01/111227-City-Treasurer- Final.pdf (Accessed November 28, 2022).
California Government Code Sections 34000 – 45345.
Los Gatos Municipal Code 2.30.035.
Milpitas Municipal Code VI-1-3.04.
Interviews
Interviews were conducted with 16 individuals between April 25, 2022, and June 16, 2022.
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This report was ADOPTED by the 2022 Santa Clara County Civil Grand Jury on this 14th day of December, 2022.
______________________________
Karen Enzensperger
Foreperson
From: Sean Hughes
To: City Clerk
Subject: Written Comment for Special Session on May 9th 2023 - Support Staff Recommendations Date: Tuesday, May 9, 2023 2:31:32 PM
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Hello,
I would like to submit the below for written comment on today's session:
I am emailing in support of Council’s adoption of the seven recommendations given in the staff report for the Special Session on May 9th, 2023. If deemed necessary by Council during the special session I also support further measures such as censure or referral to the district attorney’s office in order to prevent further violations of the municipal code, especially in light of recent interactions witnessed following the report.
Effective organization relies on trust and delegation. Thanks to the publication of this report, the public can confirm what many have witnessed in the past few years: a lack of trust and breakdown in the efficiency of Cupertino’s governance. Even in light of the information in this report, there still is a disturbing lack of acknowledgement and personal accountability by former Mayor Darcy Paul (indicated in Public Comment on May 2, 2023), and Councilmembers Chao and Moore (indicated in comment on the Item debating waiving of attorney-client privilege to make the report public, and again during following items such as the park in-lieu fees discussion).
The first step in addressing a problem is recognizing the problem exists. The reluctance of these individuals to accept these findings, and to recognize the problems they continue to create, reinforce the need for further action. I support any actions this Council finds suitable to prevent further violations of the municipal code. At the very least, for the staff’s sake, we should do all we can to improve the City’s working environment and governance functions.
Moreover, we have too many important issues at hand to be hampered by Councilmember Chao and Moore’s misunderstanding of their job role, governance by email, and disrespect of city staff. As recommended in the report, I hope that Council can focus on actions and solutions for preventing further violations, and moving forward with trust in the City staff.
Finally, as a side note I would like to point to the subsection 5 of Finding 1, where the report concludes that “The abusive and controlling behavior of former Mayor, Darcy Paul, and former Planning Commissioner Wang, is substantiated in email communications between [them] and staff”. (pg 15). As a concerned member of the public I am vindicated that our prior protestations were not without merit, and I hope it is clear the record reflects that this Council made a justified decision in the removal of former Commissioner Wang from his appointment.
Regards,
Sean
From: Jean Bedord <[email protected]>
Sent: Tuesday, May 9, 2023 2:28 PM
To: Cupertino City Manager's Office <[email protected]>; City Clerk <[email protected]>; City Council <[email protected]>; Hung Wei <[email protected]>; Sheila Mohan <[email protected]>; Liang Chao <[email protected]>; J.R. Fruen <[email protected]>; Kitty Moore <[email protected]>; City Attorney's Office <[email protected]> Subject: #1 Public Comment Fact Finding Report, Council, May 9, 2023: Fractured Communication
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Honorable Mayor Hung Wei, Vice-mayor Sheila Mohan, Councilmembers, et al ,
Thank you for this commendable Fact Finding Report. Independent verification of the Civil Grand Jury findings is important in addressing the dysfunction between the council and city staff. However, scope of the "governance by email" was greatly understated. The investigator only reviewed about 1,500 email documents. It did not address the excessive use of councilmember PRA requests to obtain information, mostly irrelevant to their job role, requiring hours and hours of staff time to attempt to fulfill such requests.
PRA requests are handled in two ways: (1) the city's Online Public Records Portal https://cityofcupertinoca.nextrequest.com/ (identified by PRA yy-nnn) and (2) Via email (identified by PRyynnn). I submitted a request PRA 23- 12 https://cityofcupertinoca.nextrequest.com/requests/23-12 using the online portal with the following request:
Please provide copies of all Public Records Requests and the results by the following council members.
1. Councilmember Kitty Moore
2. Councilmember Liang Chao
The time period is July 1, 2022 to present.
One of the email threads retrieved (see attachment) was from PR22109 submitted by Councilmember Liang Chao regarding the Block Leader program.. The city clerk was faced with the task of reviewing 7,300 emails in addition to other documents . This was the PRA request itself.
Followed by an extension of the request:
As an information professional, I question the value of the majority of this information:
* Why back to 2014? That's 9 years ago, and the person who managed it retired. As of summer 2022, the program has been restructured, so this information is irrelevant.
Councilmember Chao's request was dated Nov. 18, 2022.
* Requests for communications for non-specific members of the public will retrieve many, many irrelevant documents which have to be reviewed by the city clerk and legal. * Block leaders come and go, so only block maps and lists are relevant, not historical ones, which may have been ephemeral.
* Does some of the information requested even exist? Searching for non-existent data is time-consuming.
* Councilmember Chao claims that she doesn't have time to read council communications, so does she have time to go through the voluminous information provided by the PRA and make sense of it?
This is a project, not a PRA, and should be treated as such. A face-to-face meeting between staff and Councilmember Chao was needed to determine the "question behind the question" to clarify and narrow the scope of work to actual relevant documents that would satisfy her question instead of the proverbial "fishing expedition". In my experience, email is NOT effective in defining information needs . The end result of such poorly constructed queries is a huge amount of work by staff but no relevant answers. -------------------------------------------------
On June 21, 2022, I submitted PRA 22-71 to the city through the PRA portal for PRAs submitted for the first months of
2022; https://cityofcupertinoca.nextrequest.com/requests/22-71. See the attachment which shows that the city provided 525 documents for 17 separate PRA requests (15 from Councilmember Kitty Moore and 2 from Councilmember Liang Chao) for the first 6 months of 2022.
This was PRA2044. Why? Isn't this a "fishing expedition"?
March 2022 account statements for each account the
City has, such as the Chandler account (which is
primarily bonds), USBank accounts (OPEB, Section 115
Trust, checking accounts, credit card accounts), Home
Depot account, Office Depot account, the p‐card
account, and any other accounts the city may have for
savings, various brokerage (like Chandler and USBank),
checking, or credit cards (whether with USbank, Home
Depot, Office Depot, or others).
This was PRA 22050- these invoices have been paid -- why are they being dredged up in 2023?: Each of these documents had to be reviewed and redacted by the city clerk.
Significant support from finance was required.
City Council Budget invoices for each of the 2021 Actual amounts for Charges for Services, Miscellaneous
Revenue, Employee Compensation, Employee Benefits,
Materials, Contract Services, and Special Projects; City Manager Budget invoices for each of the 2021 Actual
amounts for Intergovernmental Revenue, Charges for
Services, Employee Compensation, Employee Benefits,
Materials, Contract Services and show each contract
being charged, and Special Projects.
Councilmember Moore is a council member, not an auditor, nor does she have any municipal finance expertise - why isn't she talking directly with the finance manager? More importantly, what questions will these documents answer? Are the hours of scarce staff time justified by the end result? As noted on Pg. 16 of the Fact Finding Report:
" However, Councilmembers Moore and Chao's duties as councilpersons are, in accordance with the Municipal Code, separate and distinct from the performing of independent work as a City auditor, planner, housing specialist, or financial consultant, especially without approval by the entire City Council. "
These requests are a significant drain on city resources, and should be filtered for approval of the council. More importantly, information requests need more vetting. As a library professional, I'm quite familiar with the skill of a reference librarian who can determine "the question behind the question" with a reference interview. It's almost never the original request! As a business analyst, I found that an in-depth interview often reduced a request from a 2-3 month project to less than a week. It's too hard for staff members to figure out the actual information that Councilmembers Liang Chao and Kitty Moore are asking for. Other than simple queries, finding the right information is an iterative process.
Councilmembers Liang Chao and Kitty Moore should commit to actually talk with city staff regarding their information needs, instead of "throwing it over the wall" and expecting the city clerk to read their minds on documents which could actually provide answers instead of a data dump.
For public transparency and the council, I recommend that the city manager provide a report of all information requests (person requesting the formation and the subject), including PRAs and face-to-face by council members, in the City Manager Report for each meeting so the public knows how its dollars are being spent.
Warm regards,
Jean Bedord
Cupertino resident
From: [email protected]
To: Cupertino City Manager"s Office; City Clerk
Cc: City Council
Subject: Probe takes Cupertino leaders to task
Date: Tuesday, May 9, 2023 3:05:33 PM
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Hello all,
I read this article in the SJMN today:
The Mercury News
None of this comes as a surprise to me.
Watching the 3 members of Better Cupertino on the previous and current council, both live and on replays, this captures their not so hidden agenda and modus operandi.
They claimed the Civil Grand Jury report was flawed.
Today, I expect to hear similar comments from them regarding Linda Daube’s independent investigative report.
I don’t know how to resolve this lingering issue ……
Maybe some disciplinary action ?
Maybe forgiveness if some remorse is shown ?
Definitely hope they do not run for reelection.
We need to correct the bad rep our City has garnered in the local press.
Clearly all of it cannot be deemed “false” !
And one more thing as Steve Jobs used to say ……..
If the Vallco development had been approved back in 2014, we would have soon be benefitting from the sales/use/property tax generated, and it would have offset the shortfall we are currently facing with the SBOE reshuffling the sales tax revenue paid by Apple.
Mike Malik
[email protected]
Cell: 408.464.1039
From: Liang Chao
To: City Clerk
Cc: Pamela Wu
Subject: Statement to be read as soon as the meeting starts Date: Tuesday, May 9, 2023 3:58:05 PM
I'd like to request the following statement be read in the beginning of the meeting as soon as the roll call is done.
And please enter this into the written communication.
Thank you.
+=====
My company has an important internal event today, which requires all hands on deck. As the Mayor and the City Manager are aware, before the legal deadline to post the agenda, I had requested a start time of 6:45pm as any regular council meeting, but this request was denied.
I will join tonight's meeting as soon as I am able, which will likely be at 6:45pm. I respectfully request that no substantive action be taken until I am present. =====
Liang Chao
Council Member
City Council
[email protected]
408-777-3192
From: Liang Chao
To: City Clerk
Subject: Liang Chao"s statement
Date: Tuesday, May 9, 2023 9:09:27 PM
Please enter this into the May 9 meeting record.
\This is the statement I read tonight.
========
Citizens of Cupertino, City Council, City Staff
Under the Constitution, which I have sworn to protect and support, it is my responsibility as an elected City Councilmember to lead the city. Cupertino voters have elected me to lead and supervise the running of the City. My constitutional duties necessarily include obtaining information about all actions of the City as appropriate in my judgment as elected representative. The highest duty of every Councilmember is to serve the best interests of the residents, not the best interests of power brokers.
The highest duty of all City staff is to serve the interests of Cupertino residents represented by the elected City Council members, including providing information as and when requested by a member of the City Council. I very much appreciate the hard and dedicated work provided by City staff day-in, day out. And I trust that they are fully capable in answering questions to support their findings. And I trust that they appreciate public and council inputs and questions in order to arrive at the best policies for our constituents.
I will continue to ask questions, analyze the information, and vote on policies based on thorough research, critical to making informed decisions. I have always directed my questions to the City Manager and will continue to do so. The political power brokers have tried to influence and muzzle the city council and staff through anonymous undisclosed interviews. The expectation that council members are here solely to rubber stamp is precisely what is wrong with the government, and that is precisely why I stepped up to serve on Cupertino City Council. I will continue to speak up and serve Cupertino residents.
As an immigrant who has seen first-hand how democracy can be hollowed out behind the scenes, I will protect and defend the Constitution - of the People, by the People and For the People - to the best of my abilities. Democracy is a privilege that I have sworn an oath as an elected official to stand up for and to protect.
THANK YOU.
Liang Chao
Council Member
City Council
[email protected]
408-777-3192
From: Kirsten Squarcia
To: Christopher Jensen; City Clerk; Pamela Wu
Subject: FW: Written Communications Item 1 Today
Date: Tuesday, May 9, 2023 5:25:45 PM
Attachments: Written Communications for City Council Special Meeting of May 9.pdf image001.png
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Kirsten Squarcia
City Clerk
City Manager's Office
[email protected]
(408) 777-3225
From: Kitty Moore <[email protected]>
Sent: Tuesday, May 9, 2023 4:03 PM
To: Kirsten Squarcia <[email protected]>
Subject: Written Communications Item 1 Today
Dear City Clerk,
Please provide the attachment to Written Communications for tonight’s meeting.
Thank you,
Kitty Moore
Representing myself only
Kitty Moore
Councilmember
City Council
[email protected]
(408) 777-1389
Written Communications for City Council Special Meeting of May 9, 2023 Agenda Item 1 Comments: 1. The Fact-Finding Report appears to blame Staff turnover on Councilmembers and does not consider employees who may have been concerned about the December 2021 revelation of the CDTFA Audit which is resulting in massive cuts and staffing reductions, or Staff departure for other opportunities for career advancement, but tries to blame Councilmembers who have been serving during a pandemic and working from home. 2. The Fact-Finding Report provides an incomplete accounting regarding concerns I have had over the nearly 4.5 years which I have served and points only to the 14-year embezzlement which was discovered 4 years after it ended and had multiple internal controls suggestions for improvement which have become addressed through the assistance of the Council approved Moss Adams assessments and recommendations to the City. Other areas of concern have included failure to provide financial reports per Municipal Code and State Law, certain approvals, contracts, payments, enforcement of conditions, appropriations, and various purchases. a. I will mention the most recent concern since I brought it up last week, which is the $600k appropriated to Library Services in the current FY 23 Budget. In doing my Budget prep I found that the City has not had to pay for extra Library hours since FY 2018-19 yet was still appropriating these funds. The current Proposed Budget has now been corrected. b. Everyone is familiar with my work noticing the hazardous waste problems at Vallco. That developer finally agreed 3 years after they obtained approval from the City to bypass CEQA in 2018 with an SB 35 project, and 2 years after stating the project had a ‘clean bill of health’ in Spring of 2019, to SCCDEH regulatory oversight to protect the workers and residents when they begin cleanup. What they may not know is that the City Staff did not inform the Council or Public for the same two years that they were conducting peer reviews. 3. There appears to have been a shift from the original motion to have a secondary investigation regarding “House Divided” which was made February 21, 2023 by Councilmember Fruen, seconded by Mayor Wei and received a majority vote by Fruen, Wei, and Mohan with Chao abstaining and Moore voting no is as follows: “…that the City Attorney will investigate and report back on other violations of the Municipal Code with respect to council-staff and commissioner-staff relations so that the City Council may establish policy to correct or prevent such violations in future.” On May 2, 2023 the same Council Majority voted to waive the important Attorney-Client privilege which damages the confidence in speaking to the City Attorney.
The Staff Report for today’s meeting on the topic states something which holds a different meaning from the February 21, 2023 Council majority direction: “If the City Council determines that the recommendations above and/or similar measures it may consider do not address the Councilmember conduct at issue, including violations of Municipal Code Chapter 2.17, Council may consider other remedies, including procedural changes to avoid future violations of the Municipal Code, censure, and/or referral to the District Attorney.” The new version of Council direction includes remedies including referral to the District Attorney. Thank you, Kitty Moore Representing myself only From: Liang Chao
To: City Clerk
Subject: Fw: Statement to be read as soon as the meeting starts Date: Tuesday, May 9, 2023 9:14:41 PM
Please enter this into the written communication for the May 9 meeting. This is a written record of what I said in the meeting:
After all of the public comment, during thee break, a member of the public told me that the statement I sent in about the reason I have to arrive late was not read by either the City Manager or the City Clerk.
So, after the break, I made the following statement:
----------
I just learned that the statement I sent to the City Manager and the City Clerk to be read right after the roll call was not read.
I am going to read that statement now.
"My company has an important internal event today, which requires all hands on deck. As the Mayor and the City Manager are aware, before the legal deadline to post the agenda, I had requested a start time of 6:45pm as any regular council meeting, but this request was denied.
I will join tonight's meeting as soon as I am able, which will likely be at 6:45pm. I respectfully request that no substantive action be taken until I am present." Thank you.
Liang Chao
Council Member
City Council
[email protected]
408-777-3192
From: Pamela Wu <[email protected]>
Sent: Tuesday, May 9, 2023 4:20 PM
To: Liang Chao <[email protected]>; City Clerk <[email protected]> Subject: RE: Statement to be read as soon as the meeting starts Councilmember Chao,
We are in receipt of your request.
Pamela
Pamela Wu
City Manager
City Manager's Office
[email protected]
(408)777-1322
From: Liang Chao <[email protected]>
Sent: Tuesday, May 9, 2023 3:58 PM
To: City Clerk <[email protected]>
Cc: Pamela Wu <[email protected]>
Subject: Statement to be read as soon as the meeting starts I'd like to request the following statement be read in the beginning of the meeting as soon as the roll call is done.
And please enter this into the written communication.
Thank you.
+=====
My company has an important internal event today, which requires all hands on deck.
As the Mayor and the City Manager are aware, before the legal deadline to post the agenda, I had requested a start time of 6:45pm as any regular council meeting, but this request was denied.
I will join tonight's meeting as soon as I am able, which will likely be at 6:45pm. I respectfully request that no substantive action be taken until I am present. =====
Liang Chao
Council Member
City Council
[email protected]
408-777-3192
From: Kirsten Squarcia
To: City Clerk
Subject: CC 5-9 #1 written communications
Date: Wednesday, May 10, 2023 7:57:52 AM
Attachments: Scan May 10, 2023 at 7.52 AM.pdf
Created and shared using Scanner Pro. Get the app
Kirsten Squarcia
City Clerk
City Manager's Office
[email protected]
(408) 777-3225
From: Kirsten Squarcia
To: City Clerk
Subject: CC 5-9 #1 written communications
Date: Wednesday, May 10, 2023 8:00:34 AM
Attachments: Scan May 10, 2023 at 7.57 AM.pdf
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Kirsten Squarcia
City Clerk
City Manager's Office
[email protected]
(408) 777-3225