April 16, 2023, Continuing Environmental Studies program: Environmental Resource Management and Pollution Prevention: Energy, Chemicals and Waste April 20, 2023, Santa Clara Valley Water Water Ambassador Program, Moore initiatied – application approved by SCVW BOD member. Attending multi-week course on water challenges, role of Valley Water, Valley Water Projects, and Organizational structure. Deep dive into the water system.
April 22, 2023 Attended Cupertino Earth Day from 11-2:20pm and visited many booths and collected lots of information. Great to see the event growing from last year! Cupertino has a lot to be proud of regarding Bird Safe/Dark Skies, Single Use Plastics, Climate Action 2.0, Reach Codes, and more!
April 24, 2023 Attended Senator Josh Becker and San Jose Mayor Matt Mahan’s press conference in support of Transitional Housing SB 643 to help provide sites for transitional homeless housing as a step to permanent housing.
April 26, 2023 Attended Supervisor Simitian’s 8th Lehigh Cement Plant and Quarry Community meeting. Of note was the mention of a 15 M gallon spill of potable water in 2022. (That is equivalent to 46 acre-ft which is 46 times the amount of water an average family of 4 would use inside and outside in a year). Efforts underway to ensure that the plant is permanently closed and begin remediation.
April 27, 2023 Attended Santa Clara County Homelessness Prevention meeting by Destination Home. Santa Clara County Homelessness Prevention System (HPS). Emergency financial assistance was analyzed and found to be very effective. HPS has had to turn away about 2/3ds of the people seeking assistance due to lacking capacity. Since starting the Eviction Diversion and Settlement Program in April 2022, they have served 167 cases, $2.9 M award, $17,608 average award per household, demand is great. Average rent for HPS participants is $1,987/month which is an increase of 12% YOY. More than half of the households HPS serves were not earning enough income to cover their monthly rent. More cost effective to prevent homelessness than to provide for homeless. Needs more funding, Measure A does not apply to this program.
April 29, 2023 Attended Cherry Blossom Festival and toured all of the indoor exhibits. Very well-attended and organized!
April 29, 2023 Attended the Grand Opening of Berraco Coffee at Stevens Creek Blvd. and S.
Tantau across from Main Street Cupertino. This new shop is one-of-a-kind and features specialty coffee.
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April 30, 2023 Ongoing Environmental Studies Environmental Resource Management and Pollution Provention: Energy, Chemicals and Waste, this week’s topic: Solid and Medical Waste Management: Legal and Technical Aspects. Very timely subject which included an overview of MRFs and Santa Clara County landfills with multiple videos on waste processing.
May 4, 2023 Santa Clara Valley Water Water Ambassador Program, Moore initiatied – application approved by SCVW BOD member. Attending multi-week course on water challenges, role of Valley Water, Valley Water Projects, and Organizational structure.
May 6, 2023 Attended Supervisor Simitian and the City of Mountain View’s Asian American Pacific Islander AAPI Heritage Month Celebration in Mountain View. Beautiful fusion of classical and contemporary music along with classic dance, fellowship, and community celebration of the founders of the local Asian Americans for Community Involvement and AACI’s 50 years of service to the community.
May 7, 2023 Continued Environmental Resource Management and Pollution Prevention course.
Waste: Current Topics & Issues.
May 8, 2023 2-hour Budget review with Senior City Staff, provided to all Councilmembers. 820
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1 CITY COUNCIL ACTIVITY REPORT
Meeting: Tuesday, May 9, 2023
Reporting Councilmember: Mayor Hung Wei
Report Activity Dates: 4/26/23 to 5/8/23
Event Date, Title, and Description:
Event 1. April 26, 2023 at noon, West Valley Cities Mayor & City Manager Meeting Santa Clara County Board of Supervisor Joe Simitian briefed the West Valley Cities Mayors and City Managers on the history of Lehigh Cement Plant and Quarry with in-depth information on the upcoming Annual Lehigh Meeting at Cupertino Community Hall in the evening at 6:30pm.
Event 2. April 26, 2023 at 6:30pm, Annual Lehigh Meeting hosted by Supervisor Joe Simitian Attended the Annual Lehigh Meeting with updated report from Supervisor Joe Simitian, listened to Public Comments, and further discussion and report by Supervisor Joe Simitian on anticipated next steps.
Event 3. April 27, 2023 at 4pm, Fremont Union High School District Earth Day, at Cupertino High School
Attended the Fremont Union High School Earth Day at Cupertino High School.
Made a speech on green and sustainability initiatives of the City of Cupertino.
Joined a Panel of five to answer questions from students.
Event 4. April 28, 2023 at 11:30am, Pacific Clinics Hearts & Hands Luncheon Attended the Hearts & Hands Luncheon, listened to personal testimonials on how 821
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2 the various programs offered by Pacific Clinics made a difference in their lives.
State Senator David Cortese and Santa Clara County Board Supervisor Joe Simitian were also present in support of the good work of Pacific Clinics.
Event 5. April 29, 2023 at 12:15pm, Cherry Blossom Festival at Memorial Park Attended the Cherry Blossom Festival Opening Ceremony. Made a short speech in welcoming all attendees and thanking all the volunteers, especially volunteers from the Cupertino-Toyokawa Sister Cities Association, for their countless hours of hard work to make this award-winning Festival an enjoyable event for all.
Event 6. May 2, 2023 at 7:30am, Morning Chat with Mayor of Cupertino Hosted May Morning Chat with Mayor at Cupertino Country with Assistant City Manager Matt Morley present. Seven participants attended and the following topics were discussed: Bike Boulevards/Poles – do they work? Bike Education was recommended; the future of Lehigh Cement Plant & Quarry; Emergency Exit on Regnart Road
Event 7. May 3, 2023 at 2pm, E-Bike Loaner Program at De Anza College Attended the Ribbon-Cutting Ceremony at De Anza College for the very 1st E-Bike Loaner Program in the nation. This was a prime example showing that collaboration works – the project was successful from supports and actions from various organizations.
Event 8. May 5, 2023 @ noon, Cupertino Post Office Naming Ceremony Attended the naming of Cupertino Post Office in honor and in memory of Matthew Axelson, Cupertino’s very own hero. This Dedication was a salute to all men and women, and their families, for their bravery and sacrifice in protecting our liberty and freedom!
Event 9. May 5, 2023 at 2:30pm, Cities Association of Santa Clara County Executive Board Meeting
Attended the Cities Association Executive Board Meeting in Mountain View City 822
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3 Hall. Discussed renew JPA process, Bond Measure Education, and seeking feedback from nine Bay area cities on various topics.
Event 10. May 7, 2023 at 10am, Torch-Lighting Ceremony for the Taiwanese and Chinese American Athletic Tournament
Attended the Torch-Lighting Ceremony for the upcoming Athletic Tournament in July, focusing on healthy living, sportsmanship, unity, peace, and fellowship.
Event 11. May 7, 2023 at noon, Happy Mother’s Day Celebration Attended a Happy Mother’s Day Celebration honoring eight mothers who exemplified a mother’s selfless, brave, and timeless love for their children.
Event 12. May 9, 2023 at 11:30am, Cal Cities Peninsula Division Executive Board Meeting
Attended the Cal Cities Peninsula Division Executive Board Meeting, discussing upcoming events. Decisions were made to postpone the Mental Health event to a later date instead of June for more impactful results. Information on the September 27 Gianst Day event with the North Bay Division fundraising for CitiPAC will be available soon.
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CITY OF CUPERTINO
Agenda Item
23-12297 Agenda Date: 5/16/2023
Agenda #: 15.
Subject: FY 2022-2023 City Work Program Third Quarter Update Receive FY 2022-2023 City Work Program Third Quarter Update CITY OF CUPERTINO Page 1 of 1 Printed on 5/10/2023
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CITY COUNCIL
INFORMATIONAL MEMORANDUM
Meeting: May 16, 2022
Subject
FY 2022-2023 City Work Program Third Quarter Update
Recommended Action
Receive FY 2022-2023 City Work Program Third Quarter Update Background
This City Work Program update focuses on the third quarter of the FY 2022-2023 City Work Program from January through March 2023. The City Council adopted the FY 22-23 City Work Program at the May 17, 2022, City Council meeting. As requested by the City Council, the City has been providing updates on the City Work Program on a quarterly basis through the City Work Program dashboard at cupertino.org/cityworkprogram.
On March 1, 2023, the City Council held a priority setting workshop where items from the FY 22- 23 City Work Program were reviewed. Items that were part of the CIP were removed from the City Work Program and will continue on the CIP dashboard at cupertino.org/cip. Those items the Council identified as high priority are continuing on the next City Work Program and those that were a low priority were removed from consideration. A printout of these updates as well as all other third quarter updates can be found in Attachment A.
The following are highlights from the FY 22-23 City Work Program third quarter update:
Intergenerational Engagement: Staff has developed intergenerational engagement programs and events to facilitate fun and engaging opportunities across generations. Closing the Gap:
An Intergenerational Mixer was held on March 13 and included many activities related to technology, dance and fitness, sports, and history and was open to youth ages 13-17 and older adults 50 and up.
Lehigh and Stevens Creek Quarry: Monitoring and reporting of Lehigh will continue 825
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2 operationally and updates will be posted on the City webpage1 or brought to the City Council as needed. Noise and pollution sensors were installed last year, and the data is available on the public dashboard2.
Bicycle Facilities: Staff has completed researching potential locations for bike racks within the public right of way and identified potential businesses to approach about locating bike racks on private property. Staff presented to the Bicycle Pedestrian Commission (BPC) in April, to finalize the list and to recruit BPC assistance in approaching the individual businesses.
Lawson Middle School Bikeway: Staff held the second community meeting virtually on March 16. At the meeting, three potential alternatives for improving bike access and safety to the middle school were presented, and polling was performed to determine community preferences. Based on this feedback, the consultants will be further refining the two preferred alternatives with final conceptual designs and cost estimates. This was presented at the third and final community meeting on April 26. Following this meeting, the alternatives will be presented to the BPC in May.
Shuttle Bus Pilot Program Implementation: Funded in part by a generous grant from the California State Transportation Agency (CalSTA), Cupertino has partnered with the City of Santa Clara to provide an EV ride share program for both communities. This expansion is anticipated in summer 2023. This pilot program will be ending with the rollout of the EV shuttle expansion into the City of Santa Clara.
Residential and Mixed-Use Residential Design Standards: Staff is working with RRM Design Group to develop Objective Design Standards for multi-family residential and mixed-use properties. The project had been on hold due to work on the Housing Element. Presently, there is a working draft document that will be completed concurrently with the Housing Element’s adoption in January 2024.
Cybersecurity Public Education: The City's Technology, Information, and Communication Commission (TIC) has handpicked three distinguished speakers from the cybersecurity industry to deliver an hour-long presentation followed by a Q&A session, aimed at providing valuable insights to Cupertino constituents. This informative event is scheduled to take place before the end of the current fiscal year.
The next quarterly update will include a wrap-up of the FY 22-23 City Work Program and the introduction to the FY 23-25 City Work Program. This will be available early next fiscal year.
Sustainability Impact
1 https://www.cupertino.org/our-city/departments/public-works/lehigh-information 2 https://www.cupertino.org/our-city/departments/public-works/lehigh-information/lehigh-and-stevens-creekquarries-noise-and-pollution-monitoring#Resources 826
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3 There are no sustainability impacts associated with this update.
Fiscal Impact
There are no fiscal impacts associated with this update.
Prepared by: Astrid Robles, Management Analyst
Reviewed by: Tina Kapoor, Deputy City Manager
Chris Jensen, City Attorney
Matt Morley, Assistant City Manager
Approved by: Pamela Wu, City Manager
Attachments:
A – FY 22-23 City Work Program Q3 Dashboard Printout
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Power BI Desktop
Updates
#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/19 10/30/19 Researched need for ELI developmentally disabled housing and moderate income housing and determined possible City locations. 100
1.3 Planning Phase Complete 7/1/21 8/16/22 Scoped affordable housing project with non-profits/developers and worked with Public Works to determine feasibility of project on City sites. Had Council study session March 15. RFP was released in August .
100
1.4 Outreach Complete 10/1/21 8/16/22 Marketed City's capital housing funds for development of affordable housing.
100
1.5 Procurement Complete 2/9/21 1/31/23 Evaluated Notice of Financial Assistance (NOFA) applications.
One responses to the RFP was received in October and staff is evaluating next steps in the execution phase.
100
1.6 Execution Phase In Progress 1/31/23 8/30/23 Selected Developer for the Mary Avenue Site. Currently working on agreement that will be presented to Council in late summer 2023.
75 1.7 Closing Processes Future 8/30/23 11/30/23 Report to Housing Commission and City Council on project status. 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Planning
Commission
$250,000.00 $250,000.00 $8,043.00 $241,957.00 5/5/23 Community Development
1. Consider options to develop ELI and BMR housing units for Developmentally Disabled individuals on City-owned property along Mary Avenue as well as the Outback Steakhouse location. Consider strategies to preserve existing BMR units.
Identify ways to build ELI housing units for developmentally disabled. Investigate additional sites for BMR or ELI housing.
Housing
ATTACHMENT A 1
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Power BI Desktop
Updates
#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/21 8/11/21 Reviewed existing documentation 100
1.3 Procurement Complete 8/12/21 12/27/21 RFQ for Design/Consultant services completed, contract implemented.
100
1.4 Planning Phase Complete 12/23/21 4/18/22 Consultants analyzed site and developed reports and a Communications plan.
100
1.5 Outreach Complete 12/21/21 3/8/23 Implemented Communications plan. 100
1.6 Design Phase Complete 5/2/22 4/4/23 Implementing Design Phase. On April 4, 2023, City Council removed all CIP items from the City Work Program. Future updates for this item can be found at the CIP Dashboard at cupertino.org/cip.
100
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Parks and
Recreation
Commission
$5,430,000.00 $5,425,999.00 $221,472.57 $5,204,526.43 5/5/23 Public Works
1. Lawrence Mitty Park Implementation Plan
Development project for Lawrence Mitty will be included in the CIP. Programming, Outreach, & Design with outreach expected to start by Q3 FY 21-22.
Quality of Life
ATTACHMENT A 2
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research & RFQ In Progress 7/5/22 10/27/23 Review existing documentation, and design professionals RFQ.
On April 4, 2023, City Council removed all CIP items from the City Work Program. Future updates for this item can be found at the CIP Dashboard at cupertino.org/cip.
20 1.3 Planning Future 10/30/23 12/22/23 Initial planning and site analysis 0
1.4 Design Future 3/1/23 5/30/23 Develop Amphitheater design & documentation 0
1.5 Procurement Future 5/15/23 8/22/23 Implement Construction Bid process 0
1.6 Execution Future 7/31/23 1/26/24 Implement Construction 0
1.7 Closing Processes Future 1/29/24 3/8/24 Close out construction 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Parks and
Recreation
Commission
$1,150,000.00 $1,150,000.00 $0.00 $1,150,000.00 5/5/23 Public Works
1. Memorial Park Improvements - Amphitheatre
Implement a six-month and 12-month plan for Memorial Park improvements including: Amphitheater Improvements Quality of Life
ATTACHMENT A 3
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Complete 9/6/21 12/1/21 Reviewed existing documentation, developed project scope, initiated consultant contract
100
1.3 Planning Complete 12/2/21 12/21/21 Established Phasing Plan/Schedule 100
1.4 Design Complete 11/30/21 4/1/22 Reviewed and approved final design 100
1.5 Procurement Complete 4/4/22 6/24/22 Implemented RFP for construction and finalized contract 100
1.6 Execution In Progress 6/27/22 4/4/23 Direct and Manage Project Construction. On April 4, 2023, City Council removed all CIP items from the City Work Program. Future updates for this item can be found at the CIP Dashboard at cupertino.org/cip.
69 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Parks and
Recreation
Commission
$3,000,000.00 $3,000,000.00 $119,526.58 $2,880,473.42 5/5/23 Public Works
1. Memorial Park Improvements - Pond Repurposing
Implement a six-month and 12-month plan for Memorial Park improvements including: Memorial Park - Pond Repurposing Quality of Life
ATTACHMENT A 4
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Power BI Desktop
Updates
#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 9/6/21 2/4/22 Existing documentation reviewed, developed project scope 100
1.3 Procurement Complete 2/11/22 7/29/22 Implemented RFQ for Design Services 100
1.4 Planning Complete 8/26/22 12/30/22 Developed Conceptual Design plans and report 100
1.5 Design In Progress 1/2/23 4/4/23 Develop Schematic Design plan. On April 4, 2023, City Council removed all CIP items from the City Work Program. Future updates for this item can be found at the CIP Dashboard at cupertino.org/cip.
15 1.6 Execution Future 5/22/23 8/18/23 Confirm approval of design and report 0
1.7 Closing Processes Future 8/21/23 9/15/23 Close Design Process 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Parks and
Recreation
Commission
$500,000.00 $500,000.00 $0.00 $500,000.00 5/5/23 Public Works
1. Memorial Park Improvements - Specific Plan Design
Implement a six-month and 12-month plan for Memorial Park improvements including: Specific Plan Design Quality of Life
ATTACHMENT A 5
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Power BI Desktop
Updates
#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/21 1/31/22 Reviewed existing conditions documentation and municipal code requirements, worked with staff to
develop program, and researched candidates for
PM roles
100
1.3 Procurement - Design Complete 2/25/22 5/17/22 Developed and initiated contract with Design phase consultants
100
1.4 Planning Phase Complete 11/1/21 8/26/22 Developed initial scope requirements, schedule, communications plan and RFQ for design phase
100
1.5 Design and Documentation
Phase
Complete 9/6/22 4/24/23 Initiate the design process through schematic design. On April 4, 2023, City Council removed all
CIP items from the City Work Program. Future
updates for this item can be found at the CIP
Dashboard at cupertino.org/cip.
100
1.6 Procurement - Construction Complete 2/1/23 6/16/23 Developed and initiated contract with Construction phase consultants
100
1.7 Execution Phase -
Construction
Future 6/19/23 2/2/24 Implement the design/build process from design development through to construction
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large N/A $3,000,000.00 $3,000,000.00 $65,016.80 $2,934,983.20 5/5/23 Public Works
4. 10455 Torre Avenue Improvements Programming & Feasibility Program, plan, and build facility improvements, including seismic, utility and ADA upgrades, for the long-term use of this facility. The scope of work will include public outreach, programming, planning, design, and construction.
Sustainability and Fiscal Strategy
ATTACHMENT A 6
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Power BI Desktop
Updates
#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 6/1/20 9/30/21 Researched existing programs and documentation. 100
1.3 Procurement Complete 9/1/21 9/24/21 Drafted RFP and selected social services agency to develop and administer program.
100
1.4 Planning Phase Complete 9/1/21 10/29/21 Worked with social services agency to develop and finalize program guidelines.
100
1.5 Execution Phase In Progress 7/1/22 6/30/23 Launched second year of program which provided employment, housing, support, training, case management, and clothing to two additional unhoused Cupertino residents. Providing ongoing technical assistance and monitoring as the program continues. 50 1.6 Closing Processes Future 6/23/23 6/23/23 Reviewing outcomes and determining need for additional funding and resources.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Housing
Commission
$200,000.00 $200,000.00 $97,016.09 $102,983.91 2/7/23 Community Development
4. Homeless Jobs Program
Create a jobs program for up to 2 individuals for 6 months. Could involve a job in maintenance of parks or in Public Works.
Housing
ATTACHMENT A 7
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Power BI Desktop
Updates
#
Task Status Task Start Task End Update % Completed
1.2 Planning Phase In Progress 10/1/22 6/30/23 Standardize process to create DOLA trial programs. 75
1.3 Outreach Complete 10/1/22 11/9/22 Met with community DOLA group to evaluate DOLA proposals.
Two trial locations determined at Linda Vista Park and Monta Vista Park
100
1.4 Execution Phase Complete 12/5/22 4/30/23 Ran DOLA trial programs at Linda Vista Park and Monta Vista Park 100
1.5 Outreach Complete 5/2/23 5/2/23 Met with community DOLA group to evaluate a standardized processs to create DOLA trials
100
1.6 Execution Phase In Progress 5/2/23 6/30/24 Create a standardized process for DOLA trials 10
1.7 Closing Processes Future 6/2/23 6/30/24 The City Council continued this item to the FY 23-25 City Work Program and will continue into the next fiscal year.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Parks and
Recreation
Commission
$5,000.00 $5,000.00 $0.00 $5,000.00 5/8/23 Parks and
Recreation
6. Dogs Off Leash Area (DOLA)
Standardize the process to create DOLA trial programs and respond and evaluate community-driven DOLA proposals to implement additional DOLAs throughout the City.
Quality of Life
ATTACHMENT A 8
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/21 9/29/23 Reviewed existing documentation. Presented research to subcommittee and Council.
100
1.3 Planning Phase Complete 4/4/23 4/4/23 Will develop scope and budget as part of CIP FY23-28.
On April 4, 2023, City Council removed all CIP items from the City Work Program. Future updates for this item can be found at the CIP Dashboard at cupertino.org/cip.
100
1.4 Conceptual Design Phase Future 8/21/23 12/15/23 Implement Conceptual Design Phase 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large N/A $500,000.00 $500,000.00 $46,117.50 $453,882.50 5/5/23 Public Works
6. Seismic Retrofits and Upgrades to Existing City Hall (formerly "Investigate Alternatives to City Hall")
Examine seismic retrofits, upgrades, and remodels to existing City Hall.
Sustainability and Fiscal Strategy
ATTACHMENT A 9
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Future 7/1/23 7/30/23 The City Council continued this item to the FY 23-25 City Work Program and is expected to begin next fiscal year. 0 1.3 Outreach Future 12/4/23 12/30/24 Develop and Implement Communications plan 0
1.4 Execution Phase Future 12/4/23 5/31/24 Teams to analyze properties, develop report and recommendations using property information and
community input.
0 1.5 Closing Processes Future 4/29/24 5/31/24 Close Project 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Planning
Commission
$90,000.00 $90,000.00 $0.00 $90,000.00 5/5/23 Public Works
6. Study Session on City Owned Properties
Inventory and assess existing facilities and prepare a long-range planning report for three City-owned properties (Blesch, Byrne, and Stocklemeir).
Sustainability and Fiscal Strategy
ATTACHMENT A 10
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 7/1/22 7/1/23 Research resources and successful initiatives in local jurisdictions and the County.
50 1.3 Outreach Future 7/1/23 10/2/23 Outreach to be developed upon research completion 0
1.4 Planning Phase Future 10/2/23 11/30/23 Planning to be developed upon research completion 0
1.6 Design Phase Future 3/1/24 5/30/24 Design to be developed upon research completion 0
1.5 Procurement Future 11/30/23 3/1/24 Procurement to be developed upon research completion 0
1.7 Execution Phase Future 5/30/24 8/29/24 The City Council continued this item to the FY 23-25 City Work Program and clarified the project objective. Funding for this item will be considered at the budget hearing in May.
0 1.8 Closing Processes Future 8/29/24 10/30/24 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Housing
Commission
$300,000.00 $300,000.00 $71,224.06 $228,775.94 5/5/23 Community Development
6. Support for the Unhoused
Formulate a City plan to leverage County resources and advocate for funding to address the issue of the unhoused.
Housing
ATTACHMENT A 11
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 1/5/23 5/23/23 Will collect data on existing conditions and analyze. 50
1.3 Outreach In Progress 3/5/23 7/27/23 Vision Zero website developed and made live in May. Will gather feedback to identify goals and strategies at various community meetings.
10 1.4 Procurement Complete 10/11/22 12/23/22 A consultant was selected in November and contract has been executed.
100
1.5 Execution Phase In Progress 1/5/23 9/1/23 Developed draft Vision Zero policy resolution and report outline.
40 1.6 Closing Processes Future 9/1/23 9/1/23 Project will be complete upon Council adoption. The City Council continued this item to the FY 23-25 City Work
Program.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Bicycle
Pedestrian
Commission
$80,000.00 $0.00 $0.00 $0.00 5/5/23 Public Works
6. Vision Zero
Develop a Vision Zero Policy and Action Plan. The Plan will guide policies and programs with the goal of eliminating fatalities on Cupertino roadways. Special emphasis will be placed on routes to, and streets surrounding, Cupertino schools.
Transportation
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Power BI Desktop
Updates
# Task Status Task Start Task End Update
% Completed
1.2 Outreach In Progress 5/19/20 11/30/23 Conducted 28 study sessions/public hearings with Housing Commission/Planning Commission/City
Council/CEP-Strategic Advisory Committee. Housing
Element update anticipated 9/30/23. Council dissolved
the CEP- SAC on 1/25/23.
45 1.3 Procurement In Progress 3/2/21 2/28/23 First consultant complete. Second round of procurement to be completed 2/21/23.
49 1.5 Closing Processes Future 1/31/24 3/31/24 Housing Element to be completed by 12/31/23. 0
1.4 Execution Phase In Progress 11/1/21 1/31/24 Working on completing Sites Inventory, Housing Policies & Programs, Draft Housing Element document, Final
Housing Element document, & CEQA in accordance with
state law.
18 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Planning
Commission
$1,070,000.00 $1,069,248.00 $221,900.86 $847,347.14 5/3/23 Community Development
11. RHNA Related General Plan Updates and Rezoning (Housing Element) Review preliminary RHNA numbers. Look at strategies for RHNA compliance including evaluating sites for potential upzoning, and jobs-housing ratio and statistics. Identify Priority Housing sites, update Housing Element and complete rezoning by Sept. 2023.
Housing
ATTACHMENT A 13
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/22 8/1/22 Researched existing student summer internship program in other cities.
100
1.3 Planning Phase Complete 7/1/22 11/1/22 Mayor's summer internship pilot program began Summer 2022. A report summarizing this program was presented
to Council Nov. 1st and a subcommittee was formed.
100
1.4 Design Phase In Progress 12/1/22 4/4/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded
and the funds will be returning to the GF.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Teen
Commission
$15,000.00 $15,000.00 $0.00 $15,000.00 5/5/23 Administrative Services
11. Student Internship Program
Implement a trial student summer internship program with the City of Cupertino. Internships will be project-focused, with participating City departments asked to identify a specific project or projects that a student intern can undertake.
Public Engagement and Transparency
ATTACHMENT A 14
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#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/22 9/30/22 Researched 5G ordinance regulations in other cities. 100
1.3 Planning Phase In Progress 4/1/23 12/1/23 Staff is finalizing a municipal code update based on input from City Council at the 12/6/22 CC meeting. This update will govern the installation of wireless small cell facilities within the Public Right of Way. This will go to Council by the end of 2023.
15 1.4 Design Phase Future 7/1/23 12/1/23 0
1.5 Execution Phase Future 10/1/23 12/4/23 0
1.6 Closing Processes Future 1/1/24 2/14/24 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium N/A $0.00 $0.00 $0.00 $0.00 5/5/23 Public Works
13. 5G Ordinance
Adopt regulations based on aesthetics.
Quality of Life
ATTACHMENT A 15
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#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/22 7/31/22 Researched other online stores for other cities including merchandise, vendors, and fulfillment partners.
100
1.3 Outreach Complete 7/31/22 3/31/23 Promoted the store via various marketing channels to our residents, businesses, and visitors once it has become public. 100
1.4 Planning Phase Complete 9/1/22 3/31/23 Staff from various departments collaborated to select a website platform, merchandise, marketing consultant, etc.
100
1.5 Procurement Complete 11/1/22 3/31/23 Staff has received inventory and placed them on the website for sale.
100
1.6 Design Phase Complete 11/1/22 12/5/22 Staff has finalized website design and has uploaded information, data, and images for website launch.
100
1.7 Execution Phase Complete 12/1/22 5/31/23 Staff launched website in February 100
1.8 Closing Processes Complete 5/1/23 6/30/23 Staff recommends sunsetting the store by June 30 due to lukewarm interest and less than ideal sales.
100
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Arts and
Culture
Commission
$150,000.00 $145,000.00 $0.00 $145,000.00 5/8/23 City Manager's Office
14. Cupertino Store Implementation
Implement the Cupertino Store plan. For the 2022-2023 FY, the Cupertino store will be online only. Staff will present a plan to the Council on item selection and art design selection.
Public Engagement and Transparency
ATTACHMENT A 16
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# Task Status Task Start Task End Update % Completed
1.2 Research Complete 6/3/19 10/2/19 Reviewed existing documentation and objective standards. 100
1.3 Outreach Complete 6/3/19 6/3/19 Seven meetings held with Planning Commission and two meetings held with City Council in 2019 to collect comments from public, commissioners and councilmembers. City Council
delegated prioritization to City Manager.
100
1.4 Planning Phase Complete 6/3/19 6/5/19 Met approximately 15 times between Oct 2019 and Sept 2020 to prioritize and discuss each suggestion made and determine next steps.
100
1.5 Procurement Complete 9/1/20 9/21/21 Council adopted general plan and zoning code objective standards for Vallco in August and September 2019. Council adopted zoning code objective standards for P zoning and parkland dedications in Dec 2019. Third Round of amendments presented Spring 2021.
100
1.6 Execution Phase Complete 6/3/19 4/4/23 Presented third round of amendments to Council in October 2021.
Evaluating amendments related to Housing Element.
100
1.7 Closing Processes In Progress 4/4/23 4/4/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded and unused funds were allocated to fund the Housing Element.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Planning
Commission
$500,000.00 $500,000.00 $224,199.00 $275,801.00 5/5/23 Community Development
14. Review and Update General Plan (GP) and Municipal Code
1. Amend GP & MC & zoning code to provide objective standards as identified in 2019/2020 evaluation. 2.Re-evaluate the Heart of the City Specific Plan for sections of the plan that could be clarified and updated easily with objective standards.
Quality of Life
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#
Task Status Task Start Task End Update % Completed
1.2 Procurement Complete 7/1/22 12/16/22 Selected a contractor to develop and post the senior survey, and analyze survey results. Staff is reviewing agreement terms for the contract
100
1.3 Research Complete 7/1/22 10/14/22 Continued analyzing what the City is alread working on for previously identified focus items
100
1.4 Outreach Complete 1/24/23 4/25/23 Drafted outreach survey questions and have Senior Advisory Council review. Survey was posted and shared with applicable Commissions to assist with community outreach and mailed to households
100
1.5 Planning Phase In Progress 4/25/23 6/20/23 Analyze senior survey results and develop plan to address senior needs. Present summary of results to Senior Advisory Council and post on City webpage
5 1.6 Closing Processes Future 6/2/23 6/30/24 Initiate and perform marketing of existing resources to seniors based on survey results and feedback received from
Commissions. The City Council continued this item to the FY 23- 25 City Work Program.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Parks and
Recreation
Commission
$69,000.00 $34,000.00 $1,328.95 $32,671.05 5/8/23 Parks and Recreation
14. Senior Strategy
Address the needs of seniors in collaboration with the City Council and Commissions. Needs to address include technology resources, housing, food supply, transportation, and mental and physical health and wellbeing.
Public Engagement and Transparency
ATTACHMENT A 18
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# Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/4/22 11/15/22 Staff has concluded researching best practices for engagement in other cities.
100
1.3 Outreach In Progress 3/2/23 4/4/23 0
1.4 Planning Phase In Progress 4/4/23 4/4/23 0
1.5 Execution Phase In Progress 4/4/23 4/4/23 0
1.6 Closing Processes In Progress 4/4/23 4/4/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded and unused funds will be returning to the GF.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Extra Large N/A $30,000.00 $30,000.00 $0.00 $30,000.00 5/8/23 City Manager's Office
17. Integrated Plan for Community Engagement
Create Integrated Plan and Database for Community Engagement, which will include all possible outreach channels, traditional media, newspaper, social media and influencers, community leaders, community groups, HOAs, Chamber and other business groups etc.
Public Engagement and Transparency
ATTACHMENT A 19
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Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Complete 9/7/20 2/1/21 Preliminary research into IoT technologies, their use at other cities, develop/publish RFI has been completed.
100
1.3 Planning Phase Complete 2/8/21 3/24/21 Development of scope of work, project charter, risk register and project plan has been completed.
100
1.4 Procurement Complete 2/8/21 1/3/22 Procurement process along with reciept of pollution map has occurred. Stationary Air Quality and Noise vendor selected and contract complete. Procurement Process Complete
100
1.5 Execution Phase Complete 4/1/21 9/16/22 Site Review for Stationary Sensors early January. Sensors installed in March and will be monitored for the next 6 months.
100
1.6 Closing Processes Complete 9/19/22 1/12/23 Close out project. 100 Details
Project Size Commission Estimated
Budget
Allocated Budget Budget Expended/
Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Technology
Information and
Communications
Commission
$62,500.00 $62,500.00 $21,000.00 $41,500.00 5/5/23 Innovation Technology
18. Pilot - Lehigh and Stevens Creek Noise and Pollution Monitoring Utilize IOT sensors to measure noise, particulate, and pollution levels at Lehigh and Stevens Creek Quarry.
Quality of Life
ATTACHMENT A 20
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Updates
#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 10/5/22 2/15/23 Research building code requirements and bike rack and installation requirements
100
1.3 Outreach Complete 10/19/22 2/15/23 Gathering feedback from Bicycle Pedestrian Commission on strategies for approaching businesses and locating bike racks in commercial areas.
100
1.4 Planning Phase Complete 10/5/22 4/19/23 Developing bike rack location list 100
1.5 Procurement Future 5/31/23 8/2/23 Will hire contractor to install bike racks 0
1.6 Design Phase Future 5/31/23 7/11/23 Will design specification for bike rack installation 0
1.7 Execution Phase Future 7/11/23 10/6/23 Install bike racks and develop recommendations for building code changes
0 1.8 Closing Processes Future 10/6/23 10/6/23 Project will be complete once bike racks are installed and recommendations are reviewed.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Bicycle
Pedestrian
Commission
$50,000.00 $50,000.00 $0.00 $50,000.00 5/5/23 Public Works
19. Bicycle Facilities.
Increase the inventory of bicycle facilities and amenities, such as bike racks, citywide.
Transportation
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# Task Status Task Start Task End Update % Completed
1.2 Research Complete 11/2/20 3/1/22 Researched Legal and other requirements if system is leased, sold or City Operated in the future.
100
1.3 Planning Phase In Progress 9/21/21 8/6/24 In July 2021, Council directed staff to proceed with an RFP for a new long-term lease. Was brought back for Council consideration in November 2021. RFP issued on 12/14/21. RFP process was cancelled on 3/3/22 and current lease was extended for 2 years. 35 1.4 Closing Processes Future 10/1/23 8/6/24 The City will be issuing a Request for Proposal during the Fall of 2023 to procure a company for continued operation of the Municipal Water System.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium N/A $150,000.00 $181,500.00 $151,632.00 $29,868.00 5/5/23 Public Works
19. Municipal Water System
To analyze and recommend options for the continued operation of the system currently and at the end of lease with San Jose Water Company in November 2022.
Sustainability and Fiscal Strategy
ATTACHMENT A 22
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#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 6/15/21 7/20/21 Compiled data from past work and existing conditions at this site 100
1.3 Planning Phase Complete 6/15/21 10/15/21 Engaged consultants for study of two options and developed scope for each
100
1.4 Procurement Complete 10/18/21 11/15/21 Executed a contract with the consultant(s) for the golf course feasibility study to include an updated scope of work.
100
1.5 Execution Phase Complete 10/20/21 11/21/22 Consultants assessed two options (minor golf course improvements and “return to habitat”) and financial impacts for each. The reports were shared with the community in May-July 2022 via in-person and online surveys and meetings. The results were presented
100
1.6 Outreach Complete 10/20/21 11/1/22 Conducted online survey, in-person and virtual community outreach efforts.
100
1.7 Closing Processes Complete 1/17/23 2/21/23 Future updates for this item can be found at the CIP Dashboard at cupertino.org/cip
100
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Parks and
Recreation
Commission
$100,000.00 $76,400.00 $59,880.81 $16,519.19 5/5/23 Parks and Recreation
21. Blackberry Farm Golf Course Needs Assessment
Determine short-term and long-term improvements to the golf course and amenities Quality of Life
ATTACHMENT A 23
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Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Complete 3/1/20 3/30/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded and unused funds will be returning to the GF.
100
1.3 Planning Phase In Progress 3/1/22 3/30/23 0
1.4 Design Phase In Progress 2/1/23 3/30/23 0
1.5 Execution Phase In Progress 1/30/23 6/30/23 0
1.6 Closing Processes Future 6/30/23 6/30/23 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Planning
Commission
$10,000.00 $10,000.00 $0.00 $10,000.00 5/5/23 Community Development
21. Development Accountability
Analyze methods to limit the implementation timeline for entitled/future projects and encourage development. Monitor implementation of development agreements and conditions of approval. Review and establish accountability in the project approval process.
Quality of Life
ATTACHMENT A 24
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Updates
# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 10/1/22 4/15/23 Benchmarking research and conversations with peer jurisdictions. 60
1.3 Outreach In Progress 3/1/23 6/1/23 Will develop and deliver outreach campaign in Spring 2023. 10
1.4 Planning Phase In Progress 11/1/22 3/31/23 Project planning and scheduling underway. 15
1.5 Procurement In Progress 1/3/23 2/3/23 Will search for and select consultant early 2023. 5
1.6 Execution Phase In Progress 4/1/23 6/30/23 The City Council did not prioritize this item for next year. This item will continue as part of the Climate Action Plan operations. 0 1.7 Closing Processes Future 6/1/23 6/30/23 Council will consider and adopt final policy. 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Sustainability
Commission
$50,000.00 $50,000.00 $0.00 $50,000.00 5/09/23 City Manager's Office
21. Electrification Study
Conduct public outreach, policy research, and coordinate with regional efforts to develop policy options for electrification of Cupertino's buildings and transportation systems.
Sustainability and Fiscal Strategy
ATTACHMENT A 25
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#
Task Status Task Start Task End Update % Completed
1.2 Procurement Complete 10/9/20 4/6/21 RFP sent out in Oct 2020. Proposals evaluated and RRM Design Group was selected to develop Objective Design Standards for multi-family residential and mixed-use properties.
100
1.3 Outreach In Progress 6/1/21 11/30/23 Outreach plan under development. 15
1.4 Execution Phase In Progress 6/1/21 11/30/23 The project had been on hold due to work on the Housing Element.
Presently, there is a working draft document that will need to be completed concurrently with the Housing Element’s adoption in January 2024.
50 1.5 Closing Processes Future 11/30/23 3/18/25 Finalize Documents for Posting on Website. 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Planning
Commission
$240,000.00 $240,000.00 $40,547.50 $199,452.50 5/5/23 Community Development
21. Residential and Mixed Use Residential Design Standards Create objective design standards for residential and mixed-use residential projects, including ensuring adequate buffers from neighboring low-density residential development.
Quality of Life
ATTACHMENT A 26
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# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 3/1/23 4/4/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded and unused funds will be returning to the GF.
0 1.3 Outreach In Progress 4/4/23 4/4/23 0
1.4 Closing Processes In Progress 4/4/23 4/4/23 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Library
Commission
$12,000.00 $12,000.00 $0.00 $12,000.00 5/8/23 City Manager's Office
25. Community Engagement on Alternative Transportation and Parking Educate and encourage resident use of alternative transportation to the Library. Install signage to point to overflow parking at Eaton Elementary school.
Public Engagement and Transparency
ATTACHMENT A 27
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Updates
# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 7/1/22 6/30/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded.
0 1.3 Outreach In Progress 8/1/22 6/30/23 0
1.4 Planning Phase In Progress 9/1/22 6/30/23 0
1.6 Design Phase In Progress 12/1/22 6/30/23 0
1.5 Procurement In Progress 10/1/22 6/30/23 0
1.7 Execution Phase In Progress 3/1/23 6/30/23 0
1.8 Closing Processes Future 6/1/23 6/30/23 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Economic
Development
Committee
$40,000.00 $0.00 $0.00 $0.00 5/8/23 City Manager's
Office
25. Visitor Center
Develop an online visitor center/guide so that visitors to Cupertino know where to go. Ideally a (digital) map to identify locations to visit or for photo ops to post on social media.
Public Engagement and Transparency
ATTACHMENT A 28
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# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 7/1/22 5/15/23 Looking into other city and organization RFPs 50
1.3 Procurement Future 5/15/23 7/11/23 Will develop RFP in 2023. 0
1.4 Execution Phase Future 6/1/23 6/1/24 Will analyze tax measures and evaluate after Council direction. 0
1.5 Closing Processes Future 6/1/24 7/1/24 Adopted measure will be placed on 2024 ballot. 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium N/A $50,000.00 $50,000.00 $0.00 $50,000.00 5/5/23 Administrative Services
27. Analyze Potential Revenue Measures
Analyze potential revenue measures, such as transient occupancy tax, sales tax, property tax, and utility users tax, to address possible future financing challenges.
Sustainability and Fiscal Strategy
ATTACHMENT A 29
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# Task Status Task Start Task End Update % Completed
1.2 Outreach Complete 11/2/22 11/2/22 Presented to Library Commissions previous completed events which included Artist Awards, Library Art Wall, Recology Exhibit, Coming Out Exhibit, Herstory 2
100
1.3 Planning Complete 1/1/23 1/31/23 Worked with Arts and Culture Commission to update the artist awards displayed at the Library
100
1.5 Planning Complete 3/1/23 3/31/23 Partnered with Cupertino Poet Laureate to establish event calendar for FY2023-2024
100
1.4 Execution Phase Complete 2/1/23 2/28/23 Updated artist display awards at the Library 100
1.6 Execution Phase Complete 4/22/23 4/30/23 Hosted events to celebrate National Poetry Month 100
1.7 Closing Processes Complete 5/3/23 5/3/23 Provided annual update to Library Commission 100 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Small Library
Commission
$10,000.00 $10,000.00 $0.00 $10,000.00 5/4/23 Parks and Recreation
27. Artwork at the Library, Exhibits, Poetry and Art Day Collaborate with groups such as the Arts and Culture Commission and Cupertino Poet Laureate to display artwork, including exhibits, at the Library.
Quality of Life
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# Task Status Task Start Task End Update % Completed
1.2 Research Complete 2/1/23 4/4/23 This item has concluded as it has been addressed by State law and is obsolete.
100
1.3 Planning Phase In Progress 4/5/23 5/2/23 0
1.4 Execution Phase In Progress 5/3/23 6/2/23 0
1.5 Closing Processes Future 6/5/23 6/14/23 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Small N/A $15,000.00 $15,000.00 $0.00 $15,000.00 5/5/23 Innovation Technology
27. Hybrid Meeting for City Council and Commission Meetings Develop policy and infrastrcture to allow hybrid meetings for both City Council, Commission meetings and future community workshops.
This allows seniors, caretakers, parents with young children to participate and speak.
Innovation Technology
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# Task Status Task Start Task End Update % Completed
1.2 Research Complete 11/10/22 2/9/23 Collected data and meeting with school staff 100
1.3 Outreach In Progress 11/10/22 5/17/23 Held a total of three community meetings and preparing to present to the Bike Ped Commission in May.
75 1.4 Planning Phase In Progress 1/19/23 5/17/23 Develop alternatives 20
1.5 Design Phase Future 5/17/23 6/20/23 Final memo summarizing alternative development process 0
1.6 Closing Processes Future 6/20/23 6/20/23 Present alternatives to City Council in May 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Bicycle
Pedestrian
Commission
$40,000.00 $40,000.00 $0.00 $40,000.00 5/5/23 Public Works
27. Lawson Middle School Bikeway
Retain consultant to prepare feasibility study which will evaluate alternatives that provide a separated bike path for students riding to Lawson Middle School. Feasibility cost will be $40,000.
Transportation
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# Task Status Task Start Task End Update % Completed
1.2 Research Complete 8/3/22 12/7/22 TIC Subcommitte established. Peformed research on event type and possbile speakers
100
1.3 Outreach In Progress 12/19/22 5/30/23 The City's TIC Commission has handpicked three distinguished speakers from the cybersecurity industry to deliver an hour-long presentation followed by a Q&A session, aimed at providing valuable insights to Cupertino constituents.
71 1.4 Planning Phase Complete 12/8/22 12/14/22 This informative event is scheduled to take place before the end of the current fiscal year.
100
1.5 Execution Phase In Progress 1/5/23 5/31/23 Project in progress. Kick-off Meeting held 50
1.6 Closing Processes Future 6/30/23 6/30/23 On Schedule 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Small Technology
Information and
Communications
Commission
$7,500.00 $7,500.00 $0.00 $7,500.00 5/5/23 Innovation
Technology
31. Cybersecurity Public Education
Provide education on cybersecurity to City residents, guests and businesses.
Public Engagement and Transparency
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# Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/22 10/15/22 Reviewed FY 21-22 program 100
1.3 Planning Phase Complete 10/15/22 12/15/22 Evaluating FY 22-23 proposal in coordination with program partners
100
1.4 Procurement Complete 12/15/22 1/12/23 Executed contract to initiate program 100
1.5 Execution Phase Complete 1/30/23 4/4/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded and unused funds will be returning to the GF.
100
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Housing
Commission
$25,000.00 $25,000.00 $0.00 $25,000.00 5/5/23 Community Development
31. Housing Program for De Anza College Students
Continue participation in De Anza College’s student housing assistance program.
Housing
ATTACHMENT A 34
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# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 7/15/22 4/4/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded and unused funds will be returning to the GF.
0 1.3 Outreach In Progress 3/1/23 4/4/23 0
1.4 Design Phase In Progress 4/4/23 4/4/23 0
1.5 Execution Phase In Progress 4/4/23 4/4/23 0
1.6 Closing Processes In Progress 4/4/23 4/4/23 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Public Safety
Commission
$12,000.00 $12,000.00 $0.00 $12,000.00 5/8/23 City Manager's Office
31. Safe Gun Storage Ordinance
Research best practices for safe gun storage from neighboring jurisdictions. Adopt safe gun storage ordinance to increase public safety for residents.
Quality of Life
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# Task Status Task Start Task End Update % Completed
1.2 Research Complete 10/29/19 11/20/21 Compiled research on various shuttle options, conducted community surveys, spoke with West Sacramento staff and other Via jurisdictions, met with several transit vendors.
100
1.3 Outreach Complete 10/29/19 11/30/21 Conducted numerous pop-up events, including at Senior Center, library, and other locations citywide.
100
1.4 Planning Phase Complete 10/29/19 11/30/21 Continued outreach to likely riders and locations of interest, Caltrain, De Anza college, etc.
100
1.6 Design Phase Complete 10/29/19 11/20/21 Pilot designed. 100
1.5 Procurement Complete 10/29/19 11/30/21 Met with various vendors including MV transportation, Altrans, chariot, etc.
100
1.7 Execution Phase In Progress 10/29/19 6/30/23 Funded in part by a generous grant from the California State Transportation Agency (CalSTA), Cupertino has partnered with the City of Santa Clara to provide an EV ride share program for both communities. This expansion is anticipated in summer 2023. 20 1.8 Closing Processes Future 6/30/23 6/30/23 This pilot program will be ending with the rollout of the EV shuttle expansion into the City of Santa Clara.
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large N/A $1,750,000.00 $1,750,000.00 $1,122,915.97 $627,084.03 5/5/23 Public Works
31. Shuttle Bus Pilot Program Implementation
Community shuttle bus 18-month pilot program to increase connectivity throughout the City, nearby medical locations, and Caltrain in Sunnyvale. Explore complimentary opportunities to expand into other cities.
Transportation
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Updates
# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 7/1/22 4/4/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded.
0 1.3 Outreach In Progress 7/1/22 4/4/23 0
1.4 Planning Phase In Progress 7/1/22 4/4/23 0
1.6 Design Phase In Progress 7/1/22 4/4/23 0
1.5 Procurement In Progress 7/1/22 4/4/23 0
1.7 Execution Phase In Progress 7/1/22 4/4/23 0
1.8 Closing Processes In Progress 7/1/22 4/4/23 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Economic
Development
Committee
$0.00 $0.00 $0.00 $0.00 5/8/23 City Manager's
Office
35. Youth Who Work
Encourage more youth and young adults in schools to work and also help small businesses to reduce the burden caused higher minimum wages. For example, the City could provide $2/hour to compensate local small businesses.
Quality of Life
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Power BI Desktop
Updates
#
Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/22 11/30/22 Staff researched intergenerational program ideas and evaluated benefits. Information was presented to the Teen Commission, Parks & Recreation Commission, and Senior Advisory Council 100
1.3 Outreach Complete 11/28/22 2/2/23 Outreach to youth volunteer groups and the school district regarding volunteer work
100
1.4 Planning Phase Complete 12/5/22 1/6/23 Staff developed implementation strategy for intergenerational engagement program
100
1.5 Outreach In Progress 1/17/23 6/23/23 Information about intergenerational events will be posted on social media, schools, on the City's Spring Recreation Guide and newsletter
65 1.6 Execution Phase In Progress 1/23/23 6/23/23 Staff to prepare and hold intergenerational events. Staff held the Intergenerational Mixer on 3/13/23.
59 1.7 Closing Processes Future 6/1/23 6/30/23 Continue developing and offer on-going programs at the Senior Center
0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Teen
Commission
$20,000.00 $20,000.00 $0.00 $20,000.00 5/9/23 Parks and Recreation
35. Intergenerational Engagement
Many seniors have a wealth of lifelong experiences. Many teens do not have grandparents nearby. Activities cross generations could benefit both. Schools could engage seniors in the community to attend school open house or serve as volunteers.
Public Engagement and Transparency
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/1/22 2/24/23 Staff are researching best practices in other jurisdictions and analyzing organizational benefits of use
100
1.3 Outreach In Progress 2/27/23 5/30/23 Staff will conduct outreach to include public meetings, surveying and engagement with the Public Safety Commission
15 1.4 Planning Phase In Progress 12/15/22 5/30/23 Staff will develop project charter, scope and communication plan 15
1.6 Design Phase Future 5/30/23 6/30/23 Program draft will be developed based on results of research and outreach
0 1.5 Procurement Future 5/30/23 6/28/23 Request and evaluate proposals, select vendor and finalize contract
0 1.7 Execution Phase Future 6/1/23 6/30/23 License plate leader program will be presented to City Council 0
1.8 Closing Processes Future 6/30/23 7/10/23 The City Council continued this item to the FY 23-25 City Work Program as part of the Public Safety Initiative project. 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Public Safety
Commission
$60,000.00 $60,000.00 $0.00 $60,000.00 5/5/23 City Manager's Office
35. License Plate Readers
Conduct research, engage in outreach, identify location for placement and estimate cost of implementing an Automated License Plate Reader (ALPR) system in Cupertino.
Quality of Life
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 5/13/20 12/30/22 Conducting research on surrounding jurisdictions 75
1.3 Planning Phase In Progress 12/1/20 4/4/23 The City Council did not prioritize this item for the FY 2023-25 City Work Program. This item was concluded and unused funds will be returning to the GF.
43 1.4 Execution Phase In Progress 4/4/23 4/4/23 0
1.5 Closing Processes In Progress 4/4/23 4/4/23 0
Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Small Planning
Commission
$25,000.00 $25,000.00 $0.00 $25,000.00 5/5/23 Community Development
35. Sign Ordinance Update
Update existing provisions, particularly in the temporary sign regulations.
Quality of Life
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Complete 9/1/20 11/19/20 Research of current scope and scope in other cities complete. 100
1.3 Outreach Complete 11/19/20 4/30/21 Presented research results to Environmental Review Committee (ERC) on 4/16/21.
100
1.4 Execution Phase Complete 4/16/21 3/7/23 On 1/25 the City Council voted to dissolve the Environmental Review Committee. The second reading of the ordinance was approved by Council on 3/7/2023.
100
1.5 Closing Processes Complete 3/7/23 4/30/23 Project has concluded 100 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Small Environmental
Review
Committee
$0.00 $0.00 $0.00 $0.00 5/09/23 City Manager's
Office
Consider New Commissions and Committees - Review Environmental Review Committee
Review the scope of the ERC.
Public Engagement and Transparency
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research Complete 7/7/20 12/15/20 Research existing documentation and processes of other jurisdictions.
100
1.3 Outreach Complete 7/7/20 11/5/20 Council Study Session on 7/7/2020 100
1.4 Execution Phase Complete 10/1/20 5/12/21 Prepared materials for hearings 100
1.5 Closing Processes In Progress 12/8/20 6/30/23 PC hearing on 1/12/21 with recommendation presented to Council on 2/2/21. Went back to Council on 8/17/21. Project pending Housing Element completion.
75 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Small Planning
Commission
$6,500.00 $6,500.00 $1,145.00 $5,355.00 2/27/23 Community Development
General Plan Authorization Process
Evaluate the existing City Council authorization process for General Plan Amendment projects.
Quality of Life
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.2 Research In Progress 10/11/21 1/30/23 Staff to continue research on the affects of pandemic on retail. 77
1.3 Outreach In Progress 11/1/21 1/30/23 Gather data on market strenghts and trends. 75
1.4 Planning Phase In Progress 2/11/22 3/30/23 Coordinating with Retail Consultant to finalize research materials for Council study session.
70 1.5 Execution Phase In Progress 4/1/23 6/30/23 This item will continue as part of operations. 0
1.6 Closing Processes Future 6/30/23 6/30/23 This item will continue as part of operations. 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium Planning
Commission
$50,000.00 $50,000.00 $10,000.00 $40,000.00 5/09/23 City Manager's Office
Study Session on Regulating Diversified Retail Use
Identify ways to encourage retail diversity and vital services, find creative solutions to retenant vacant spaces and to attract independent operators. Evaluate pros and cons of Retail Formula Ordinances in other cities.
Quality of Life
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.3 Research Complete 7/1/21 8/25/21 Established the scope and desired result of the report 100
1.5 Design Phase In Progress 12/1/21 8/2/23 Prepared, reviewed, and finalized the assessment report 23
1.4 Procurement Complete 8/26/21 11/30/21 Selected consultant and executed agreement 100
1.6 Closing Processes In Progress 8/2/22 12/30/23 Council approved the implementation of the findings as a project in the FY 22-23 CIP. Report was presented to Council in September 2022, and Council requested additional information.
Return to Council with update planned for end of 2023.
20 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Medium N/A $50,000.00 $50,000.00 $6,500.00 $43,500.00 5/09/23 Public Works City Light Transition Assessment
Assess the costs, benefits, and opportunities of transitioning the City's streetlight infrastructure, and other City operated lights, from induction to LED fixtures. LEDs would allow lights to be turned down and the assessment will evaluate the efficacy Sustainability and Fiscal Strategy
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Power BI Desktop
Updates
# Task Status Task Start Task End Update % Completed
1.5 Research Complete 7/1/21 8/31/21 Compiled requested modifications and verify legal standing and how other Cities handle the issue.
100
1.6 Planning Phase Complete 11/1/21 11/29/21 Put together modified regulations and City Ordinance 100
1.7 Execution Phase In Progress 11/30/21 12/30/23 Present regulations and ordinance to City Council for approval by end of 2023
35 1.8 Closing Processes In Progress 5/2/23 12/30/23 Complete Second Reading of ordinance and close project. 0 Details
Project Size Commission Estimated Budget Allocated Budget Budget Expended/ Encumbered
Budget Remaining Last
Updated
Lead Department
Large Technology
Information and
Communications
Commission
$250,000.00 $250,000.00 $0.00 $250,000.00 5/09/23 Public Works Revisit 5G. Including but not limited to, recording, responding to complaints, transparency on existing applications
Council review existing 5G policy and make alterations as they deem fit. Suggested areas to explore: 1)Spacing between small cell sites and 2) study the City's ability to mandate multi-tenant small cells. Staff is to record all resident concerns on a Resident Concern Record.
Staff is to add a street image for the 5G cell location and fill out the questionnaire 2. Staff is to meet with the cell providers monthly or as needed based on additional resident concerns and give the cell provider the sum total of Resident Concern Records and then report back to City Council. Staff is to continue to update the City Managers spreadsheet of updated status for nearby cities 5G cells in residential areas.
Quality of Life
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CITY OF CUPERTINO
Agenda Item
23-12270 Agenda Date: 5/16/2023
Agenda #: 16.
Subject: Receive the Library Construction Audit Report
Receive the Library Construction Audit Report
CITY OF CUPERTINO Page 1 of 1 Printed on 5/10/2023
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CITY COUNCIL STAFF REPORT
Meeting: May 16, 2023
Subject
Receive the Library Expansion Project Construction Audit Final Report Recommended Action
Receive the Library Expansion Project Construction Audit Final Report Reasons for Recommendation
Background
In Fiscal Year (FY) 2019-20, the City began an internal audit program. On September 3, 2019, the City issued a Request for Proposal (RFP) for internal audit services. After reviewing the proposals, the evaluation committee selected Moss Adams as the City’s Internal Auditor. Moss Adams serves as the City’s designated Internal Auditor and conducts projects focusing on:
Risks
Internal controls
Efficiency and effectiveness
Best practices
Compliance
The internal audit charter was approved by the Audit Committee on February 11, 2020, and the City Council on July 7, 2020.
Roles of Audit Committee and City Council
The Audit Committee and City Council approve the annual audit work plan, review audit report findings and recommendations, and monitor the implementation of recommendations.
Enterprise Risk Assessment
Moss Adams conducted an Enterprise Risk Assessment (ERA) in 2020 to analyze the City's risk areas. For each risk category assessed, the risk assessment included an overview of the risk condition in the City, including the current risk level, likelihood, impact, preparedness, and trajectory.
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The Enterprise Risk Assessment identified high, moderate-to-high, and moderate risk categories. Moss Adams presented the Enterprise Risk Assessment to the Audit Committee on February 22, 2021 and May 24, 2021, and to the City Council on July 20, 2021. The Library Construction Audit addresses contracting, which is one of the high risk categories, and was included in the FY 2022-23 internal audit work plan.
Project Background
As identified in the City’s annual internal audit work plan, Moss Adams conducted a construction audit of the Cupertino Library Expansion project (library construction audit) to:
Review reporting, project accounting consistency controls, and related construction controls
Identify non-compliant project charges and change orders Identify control improvement opportunities
The primary focus of the library construction cost audit was to evaluate construction controls for the Project to determine their reasonableness and adherence to the terms of the construction contract. The report reflects practices observed and cost documentation reviewed through July 31, 2022. As part of the construction audit, the internal auditors completed the following procedures:
• Reviewed payment documentation and calculations to assess the adequacy of supporting documentation for the DBE
• Assessed internal controls surrounding the DBE’s and City’s processes • Reviewed Contract terms and identified areas not properly implemented • Reviewed Contract terms and identified areas of potential improvements • Reviewed select subcontractor agreements for compliance with prime contract requirements
• Analyzed change orders including markup testing
• Reviewed Conditional Release and insurance documentation • Reviewed skilled workforce requirement documentation
• Performed other miscellaneous testing procedures as necessary • Conducted interviews as necessary
• Reviewed the DBE’s and subcontractors’ Certificates of Insurance • Checked subcontractors’ state licenses
Project Results
During the library construction audit of the Cupertino Library Expansion project, Moss Adams identified $327 in questioned costs, as well as several project control opportunities.
Questioned costs are charges that are not allowable per the construction contract between the City and the contractor. Overall, the results of the audit are consistent with a positive audit. Eight of the nine audit observations relate to recommendations surrounding improvements and enhancements to the City’s existing procedures and control 875
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environment to support continued consistency amongst City Project Management personnel.
As part of this audit, Moss Adams also identified several positive practices that the City has in place, including:
• Project management teams consist of experienced construction professionals. • Contractor project expenditure documentation was effectively sourced, maintained, and managed.
• Strong collaboration and good working relationship between City and Contractor project management personnel was observed.
Management Response
Management agrees with some observations and recommendations. Those can be found in Section IV, pages 8-17.
Next Steps
Staff will evaluate recommendations and where appropriate begin implementing the report’s recommendations. Internal audit status reports are available on the City’s website at cupertino.org/internal-audit.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact. The City’s Internal Audit contract is included in the contracts category of the accounting program in the FY 2022-23 Adopted Budget. _____________________________________
Prepared by: Thomas Leung, Budget Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – Library Construction Audit Final Report
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Proprietary & Confidential
FINAL REPORT
City of Cupertino
CUPERTINO LIBRARY EXPANSION PROJECT CONSTRUCTION AUDIT
April 20, 2023
Moss Adams LLP
101 Second Street, Suite 900
San Francisco, CA 94105
(415) 956-1500
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April 20, 2023
Pamela Wu
City Manager, City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Dear Pamela:
Thank you for the opportunity to perform the construction close-out audit for the Cupertino Library Expansion project. This report summarizes the results of our close-out audit and project controls review.
This engagement was performed in accordance with the Standards for Consulting Services established by the American Institute of Certified Public Accountants. The scope of this engagement is outlined in the body of our report. This report was developed based on information from our review of construction projects and records.
This report is intended solely for the use of the City of Cupertino, and may not be provided to, used, or relied upon by any third parties. Moss Adams LLP does not accept any responsibility to any other party to whom this report may be shown or into whose hands it may come.
We appreciate the opportunity to help you continuously improve your construction program performance. Please do not hesitate to contact us if you have any questions or need further assistance regarding this important matter.
Sincerely,
Moss Adams LLP
San Francisco, CA
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Cupertino Library Expansion Project Construction Audit Report
FOR INTERNAL USE OF THE CITY OF CUPERTINO ONLY
Table of Contents
Executive Summary 1
Objective and Scope 3
Project Overview 4
Detailed Observations and Recommendations 5
Appendix A: Skilled and Trained Workforce Documentation Controls 15
Appendix C: Payment Application Controls 17
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EXECUTIVE SUMMARY
During the construction close-out audit of the City of Cupertino’s (the City) Cupertino Library Expansion (the Project), Moss Adams LLP (Moss Adams, we, our) identified $327 in questioned costs, as well as project control opportunities. Questioned costs are charges that are not allowable per the construction contract (the Contract) between the City and Rodan Builders, Inc. (the DBE).
Overall, the results of the audit are consistent with a positive audit, with eight of the nine observations relating to recommendations surrounding improvements and enhancements to the City’s existing procedures and control environment to supported continued consistency amongst City Project Management personnel. As part of this audit, we also identified several good practices relating to the capital project, including:
• Project management teams consist of experienced construction professionals. • Contractor project expenditures documentation was effectively sourced, maintained, and managed.
• Strong collaboration and good working relationship among City and Contractor project management personnel was observed.
The table below summarizes the questioned and unsupported costs identified during our review.
Summary observations and future improvement opportunities have also been provided below.
OBSERVATION NO. QUESTIONED AND UNSUPPORTED COSTS COSTS CHARGED 1 Questioned Non-Compliant Change Order, Foreman Rate $327 Total Questioned and Unsupported Amounts $327
1. Questioned Non-Compliant Change Order, Foreman Rate - The DBE charged the City for Foreman labor rates in excess of actual costs as determined by DBE payroll reports, resulting in $326.83 of questioned labor costs (see Observation No. 1 in the report body for further information).
2. Contract Compliance -Excessive Change Order Markups - The methodology implemented to revise the scope included within PCO 19R2 may have led to $5,853.75 of unnecessary DBE fee markups (see Observation No. 2 in the report body for further information).
3. Contract Compliance – Inadequate Skilled Labor Documentation Control - The DBE did not adequately report compliance with Skilled and Trained Workforce documentation requirements (see Observation No. 3 in the report body for further information).
4. Contract Compliance – Payment Application Controls - Select payment applications reviewed were not fully executed (see Observation No. 4 in the report body for further information).
5. Contract Compliance – Inadequate Lien Waiver Controls - The DBE’s support did not include a conditional lien waiver for one payment application reviewed (see Observation No. 5 in the report body for further information).
6. Contract Compliance – Inadequate Flow Down Provisions - The DBE did not include the prime contract flow down clause in its subcontracts (see Observation No. 6 in the report body for further information).
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7. Contract Compliance Design-Builder (DBE) Self-Performed Change Order Delivery Method - The DBE did not sufficiently substantiate it’s self-performed costs in its requests for extra work, resulting in $14,681.67 of unsupported costs (see Observation No. 7 in the report body for further information).
8. Contract Compliance – Inadequate Drawing Rights Secured Confirmation - The DBE did not provide the City with evidence of right of use for the Project’s design (see Observation No. 8 in the report body for further information).
9. Contract Compliance – Incorrect Payment Application Calculations - The DBE included a calculation error as part of Design Application No. 8D (see Observation No. 9 in the report body for further information).
Contract Type and Cost of Work Definitions Process Improvement: On future projects of this size, or larger, the City should continue to evaluate the City’s ability to use a Guaranteed Maximum Price (GMP) contract type with a right-to-audit clauses with strong cost of work definitions for cost types such as labor, equipment, direct cost, materials, insurance markups and fees to support the City with budget management and cost control on major capital projects.
Deductive Change Order Markups Process Improvement: The City’s prime contract does not appear to allow the City to recuperate the full cost benefit of deductive change orders. Contract Article 6.3 states, “Time and materials compensation for increased costs or Extra Work (but not decreased costs or deleted Work), will include allowed markup for overhead, profit, and other indirect costs.” Several instances were observed where deductive change orders did not include the associated deduction in fees and markups as stipulated in the Contract. However, allowing the City to recover markups on reduced scopes would be beneficial to the project and the City.
Project Oversight Process Improvement: The City’s agreement with Griffin Structures, the City’s Representative, was executed in late October 2020, while the first application for payment from the DBE was submitted at the end of September 2020. The City should continue to evaluate adequate staffing levels on other projects and engaging representatives early enough to ensure appropriate levels of skills and expertise are available to successful guide a project during the critical early phases.
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OBJECTIVE AND SCOPE
The primary focus of the close-out construction cost audit was to evaluate construction controls for the Project to determine their reasonableness and adherence to the terms of the construction contract. This report reflects practices observed and cost documentation reviewed through July 31, 2022. As part of the construction audit, we performed the following procedures:
• Reviewed payment documentation and calculations to assess the adequacy of supporting documentation for the DBE
• Assessed internal controls surrounding the DBE’s and City’s processes • Reviewed Contract terms and identified areas not properly implemented • Reviewed Contract terms and identified areas of potential improvements • Reviewed select subcontractor agreements for compliance with prime contract requirements • Analyzed change orders including markup testing
• Reviewed lien release and insurance documentation
• Reviewed skilled workforce requirement documentation
• Performed other miscellaneous testing procedures as necessary • Conducted interviews as necessary
• Reviewed the DBE’s and subcontractors’ Certificates of Insurance • Checked subcontractors’ state licenses
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PROJECT OVERVIEW
We performed this review using the most current contractor payment application, which was Construction Phase Payment Application No. 15C through July 31, 2022. The following table provides a summary of the Project billing and costs reviewed as part of the audit:
PAYMENT
APPLICATION SERIES
CONTRACT
AMOUNT AMOUNT BILLED
PERCENTAGE
COMPLETE
COST REVIEWED
THROUGH
Design Phase $648,014.55 $648,014.55 100% 6/30/2021
Construction Phase $6,314,069.67 $6,314,069.67 100% 7/31/2022 Total $6,962,084.22 $6,962,084.22 100% 7/31/2022
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DETAILED OBSERVATIONS AND RECOMMENDATIONS
This section provides the details of our observations, risks, and recommendations as well as City responses. The following audit observations have been ranked as high, medium, or low priority based upon our analysis and experience with respect to probability and potential impact on the construction project costs, schedule, and scope goals. 1 Questioned Non-Compliant Change Order, Foreman Rate MEDIUM -
HIGH RISK
The DBE charged the City for Foreman labor rates in excess of actual costs as determined by DBE payroll reports, resulting in $326.83 of questioned labor costs. We reviewed change orders 01 through 08 totaling $485,916.22. Based on our review, we observed two instances where labor rates did not align with DBE payroll reports provided. Article 6.3.C.1 of the Contract states the allowable labor cost on change orders is, “15% for overhead and profit.” The table below summarizes the labor billings and excess charges:
Potential Change Order (PCO)/
Owner Change Order (OCO) Description Labor Billing Rate Labor Cost Rate per
Labor Reporting
Labor Billing Rate vs
Cost Rate Variance
PCO 09/06 8 Foreman labor hours $119/hr $99/hr $20/hr
PCO 10/07 6 Foreman labor hours $119/hr $99/hr $20/hr
Subtotal $280.00
Self-Performed Mark-up
at 15%
$42.00
Bond Mark-up at 1.5% $4.83
Total 14 labor hours $326.83
Per additional inquiry with the contractor, “it appears our superintendent mis-labeled on of our employees as a foreman on the T&M tags.”; no additional documentation is available. Absent further clarification or documentation to support the excessive labor rate, we are unable to confirm the appropriateness of the overbilled amount, resulting in questioned billings in excess of actual costs incurred totaling $326.83. 884
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Recommendation The City should implement change order management controls to prevent charging change order labor rates in excess of contractually allowable amounts, as required by the Contract terms. The City should consider seeking credit for excess labor charges.
Contractor Response I do not have any additional documentation to provide. It appears our superintendent mis-labeled one of our employees as a foreman on the T&M tags.
City Response The City will consider change order cost management controls that align with the City’s assessment of risk. 2 Contract Compliance – Excessive Change Order Markups MEDIUM -
HIGH RISK
The methodology implemented by the DBE to revise the scope as included within PCO 19R2 may have led to unnecessary DBE fee markups. In summary, when calculating PCO 19R2, the DBE credited the original budget of $35,000 without returning DBE markups (as allowed by Article 6.3 for decreased costs or deleted work) and applied DBE markups on the full value of added scope, not the net difference, resulting in the DBE collecting a fee on both the original $35,000 budget as well as the added scope totaling $5,853.75 summarized in the table below:
Original Budget for Donor Wall Markups
$35,000.00 -
Self-Performed Markup Rate of 15% - $5,250.00
Bond and Insurance Rate of 1.5% - $603.75
Total $5,853.75
The original project budget included $35,000 for the “Donor Wall,” which was increased as part of OCO No. 7 (PCO 20R1) to $81,283.37 of DBE selfperformed work costs. Also included within OCO No. 7 (PCO 19R2) was an “Art Wall” in the amount of $66,559.65 (self-performed work costs only).
In moving forward with both the “Art Wall” and the “Donor Wall” at the change order values, the DBE elected to no longer utilize the $35,000 initial budget for the “Donor Wall” and credited this amount within PCO 19R2. Due to contract Article 6.3, the DBE was able to keep all fee and all associated markups, though the initial $35,000 budget for the “Donor Wall” was fully credited within PCO 19R2. In addition to earning these markups on deleted work, the DBE was able to earn markups on the added change order budgets for both the new value of the “Donor Wall” ($81,283.37) and the “Art Wall” ($66,559.65). Implementing a methodology where deleted scopes of work do not proportionately affect the DBE’s markups has allowed them to decrease the budget and re-add the same scope at a higher value; affording them the opportunity to make fee and markups in both instances. 885
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In the future, the net effect of changes should be subject to fee. If that had been the case for this Project, the City would have avoided paying the DBE $5,853.75 in fees, bonds, and insurance markups.
Recommendation The City should review change order management controls and associated contract language to prevent incurring excessive fee markups. The City should consider whether it is worthwhile to pursue cost recovery of markups associated with the PCOs identified.
Contractor Response n/a
City Response The contractor and the City provided consistent information on how the change order process worked. The City understands that the change order process was not clear to the auditor after the fact and will explore options for revision.
The change orders expenses were in alignment with the agreement between the contractor and the City and thus no additional exchange of funds is warranted.
3 Contract Compliance – Skilled Labor Documentation Control MEDIUM RISK The DBE did not adequately report compliance with Skilled and Trained Workforce documentation requirements. Contract Article 8.3(A)2 states, “The application for payment for Construction Services must also include the monthly report documenting compliance with the Skilled and Trained Workforce requirements pursuant to Public Contract Code§ 2602, and as specified In Section 9.6.” Furthermore, Article 6.4 states, “Services on the Project that fall within an apprenticeable occupations in the building and construction trades, in accordance with Public Contract Code§ 2600 et seq.
DBE, members of the Design-Build Team providing Construction Services, and Subcontractors of every tier will comply with these requirements. DBE will provide City with a monthly report while the Project is being constructed evidencing that the DBE, its Design-Build Team (as applicable).” The audit team requested the Skilled and Trained Workforce documentation from the DBE multiple times; the DBE provided two certificates. One certificate was associated with Payment Application No. 15C (July 2022) and another undated one was not directly associated with a payment application. Per inquiry with the DBE, no additional documentation was available. See Appendix A for a listing of payment application Skilled and Trained Workforce documentation received. Absent further documentation from the DBE, it is unclear if Skilled and Trained Workforce documentation was provided during the course of construction as required per state law. 886
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Recommendation The DBE should implement billing controls to ensure adequate skilled labor documentation, as required by the Contract terms. For example, the City should ensure that all Skilled and Trained Workforce documentation is consistently reported in the monthly application for payment with the appropriate level of detail required to ensure compliance with Public Contract Code. Compliance with this requirement should be tracked by the City and Project Management for compliance.
Contractor Response I do not have any additional documentation to provide.
City Response The CIP practice is that the City PM confirms that the certified payroll has been submitted to DIR; and they request/file the monthly certified payroll record throughout the life of the project. We will confirm that this practice is implemented consistently across the CIP construction projects.
4 Contract Compliance – Select payment applications reviewed were not fully executed MEDIUM RISK During our review of payment applications, we identified some payment applications were not fully executed. Contract Article 8.3 states, “DBE will submit to the Project Manager for approval, a monthly application for payment for Work performed.” Per inquiry with the DBE, no additional documentation is available. The following table summarizes the three instances where payment application approvals were deficient (see Appendix B for a listing of payment application execution statuses):
Project Phase Payment Application Number DBE Signature Provided as Required?
Griffin Structures’ Signature as
Required?
Design 1 N N [1]
Design 2 N Y
Design 3 N Y
[1] It appears that the payment application was submitted prior to Griffin Structures’ agreement with the City being in place.
Recommendation The DBE should implement billing controls to ensure adequate sign-offs, as required by the Contract terms. The City and its project managers should require the DBE to fully execute all payment applications prior to submission.
Contractor Response I do not have any additional documentation to provide. 887
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City Response The City will ensure all future payment applications are fully executed. 5 Contract Compliance – Inadequate Conditional Waiver Controls MEDIUM RISK During our review of the DBE’s payment applications, we were unable to identify a conditional waiver for one payment application. Per inquiry with the DBE, no additional conditional waiver documentation is available. Contract Article 8.3(A)2 states, If requested by the Project Manager, each application for payment for Construction Services must also be accompanied by an executed Conditional Waiver and Release Upon Progress Payment, using the form specified in Civil Code 8132 for each Subcontractor that performed Work during the period covered by that application.” Conditional waivers from general contractors (or in this case, the DBE) can be an important tool because they provide proof that the contractor has been paid for their work on a construction project and can afford to pay their subcontractors and suppliers in a timely manner. By signing a conditional waiver, the contractor is releasing their right to file a mechanics lien against the property if they have not been fully compensated for their services.
This helps to reduce the risk of financial disputes between the property owner and the contractor, and ensures that all parties involved are protected.
While public capital projects may be subject to a different method of claim remedy, requiring conditional waivers with each payment application is a best practice even when the project is public works.
Additionally, 32 of the 45 conditional waivers reviewed were executed by the Project Engineer while the balance was executed by either the Project Manager or the CFO. The contract does not state which persons have the responsibility to act on behalf on the DBE, and it is unclear if the Project Engineer would have the authority to act on behalf of the DBE.
Recommendation As a best practice and consistent with contractual language, the DBE should obtain and provide to the City conditional waivers from each subcontractor and material supplier once payment is made to support the City ensuring all parties are being paid timely and there are payment issues which may be an indicator of performance issues. At the end of a subcontractor’s work, or at the Project’s completion, conditional waivers for all subcontractors should be obtained to validate full payment for performance of the Contract and mitigate potential exposures for the City. Additionally, the City should consider updating policies and procedures to develop a methodology with project management personnel to determine which subcontractors are required to provide conditional waivers based on initial subcontracting plan including attributes such as contract size and or scope complexity.
Contractor Response I do not have any additional documentation to provide.
City Response The City assumes that the auditor is using “lien waiver” as a shorthand for the conditional waiver and release upon payment which is authorized under Civil Code section 8132 (since mechanics liens do not apply to public property).
Section 8.3(A)(2) of the General Conditions authorizes but does not require the project manager to request that each 888
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application for a progress payment be accompanied by a Conditional Waiver and Release Upon Progress Payment.
Unconditional waiver and releases are similarly addressed in Section 8.3(B)(2). 6 Contract Compliance – Flow Down Contract Provisions Not Included in Subcontracts LOW - MEDIUM RISK
Based on our review of the sample subcontracts, the DBE did not include the prime contract flow down clause in its subcontracts. Contract Article
2.5.B states, “Subcontractor to be bound to the provisions of the Contract Documents as they apply to the Subcontractor’s portion(s) of the Work, and to likewise bind their subcontractors or suppliers.” The audit team sampled the mechanical, electrical, and plumbing subcontracts and of the three subcontracts. None of the subcontracts appeared to have language tying vendors to these prime contract obligations. The following table summarizes the documents reviewed:
Subcontractor
Identified DBE Document Reviewed
Flow Down
Clause
Identified? Auditor Methodology Notes
Environmental Systems
Inc.
‘20-1110 _Work
Authorization_ESI_HVAC’
N Document appears to be the scope of work for the subcontract, but did not include the contractual flow down provision requirement.
Atlas Pellizzari ‘20-1110 _Work
Authorization_Atlas’
N Document appears to be the scope of work for the subcontract, but did not include the contractual flow down provision requirement.
Environmental Systems
Inc.
‘20-1110 _Work
Authorization_ESI_Plumbing_R
1’
N Document appears to be the scope of work for the subcontract, but did not include the contractual flow down provision requirement. ‘SubPack WITH EXHIBITS’ N Document appears to be the typical exhibits package to accompany a subcontractor’s scope of work, but did not include the contractual flow down provision requirement.
Additionally, in its subcontracts, the DBE did not include the required language as mandated by Exhibit A-A, Shelter In Place and Social Distancing Requirements, which states, “Contractor shall include the terms of this Exhibit in all subcontracts and require any agents, subcontractors, or subconsultants to comply with its provisions.” However, our review of the DBE's typical subcontract exhibits and scope of work did not provide evidence of Covid-19 safety exhibits. It is important to confirm the inclusion of this exhibit to ensure that proper safety measures are being implemented on the Project site.
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In prime construction contracts, flow down clauses are crucial because they outline the duties and obligations of the parties participating in a project.
These clauses ensure subcontractors and suppliers are subject to the terms and conditions of the prime contract. Flow down clauses frequently contain stipulations relating to payment terms, insurance conditions, special warranty requirements (Article 11.2.D page 73), special safety requirements, and dispute-resolution processes. These clauses make sure that suppliers and subcontractors are adhering to the requirements of the prime contract and are aware of their responsibilities not only to the contractor but also to the client. Though the DBE bears the risk by not including the flow down clause, in the event of a dispute, the responsible subcontractor party would be obligated to engage and bear the cost of their noncompliance, leading to better outcomes for the City and DBE.
Recommendation The City should consider implementing contract administration controls to ensure flow down contract provisions, are included within contracts, as required by the Contract terms. For example, the City should request a copy of a typical subcontract agreement template ahead of the DBE’s buyout process to confirm compliance with flow down requirements.
For subcontracts already executed, the DBE could issue subcontract change orders modifying the subcontract agreement terms and conditions.
Contractor Response n/a
City Response The City will consider the recommendation to request a subcontract agreement template. 7 Contract Compliance Self-Performed Work Change Order Delivery Method LOW - MEDIUM RISK
During our review of self-performed work change orders, we were unable to identify the change order delivery method (i.e. lump sum, T&M, etc.). Per Article 6.3 of the contract, adjustments to contract price, “The amount of any increase or decrease in the Contract Price will be determined based on one of the following methods, listed below in eh order listed with unit pricing taking precedence over the other methods… (A) Unit Pricing… (B) Lump Sum… (C) Time and Materials…” Upon enquiry with the DBE, they responded that change orders were intended to be lump sum and not T&M, meaning costs were not specifically tracked in a method to easily provide itemized cost documentation. The change order forms observed on the project did not explicitly make reference to the change order delivery method (T&M, Lump Sum, or other). It has been observed that self-performed labor scopes were not identified as lump sum values, and some of the charges lack the necessary level of substantiation. Within each extra work detail breakdown provided, we often observed lines identified as Lump Sum (LS) as well as lines indicating Time and Material (T&M) charges. These charges may be reasonable and warranted for the proper completion of the scope, but do not meet the Contract requirements for supporting documentation. Based on several requests throughout the audit, we were unable to obtain the requested substantiation documentation.
Recommendation The City should evaluate the T&M and allowance use within the change orders identified for cost substantiation and reasonableness as required by the Contract. The City should consider developing change order forms and update as needed to include information such as change type (e.g., cost plus not to exceed, T&M, lump sum, unit price, etc.), 890
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itemized change amounts, percentages, descriptions, change responsibilities, schedule impacts, dates of approval, subtotals, and totals to enhance internal change order controls and to support contract compliance.
Contractor Response In general, I’m not going to be able to provide the backup you’re looking for in regards to small tools. Our superintendents order tools as needed, and as you can see from the attached invoice for example it’s extremely difficult, if not impossible, to allocate those costs perfectly per Change Order. Because of this, we use a percentage of labor costs to cover small tools expense.
PCO 10 – see invoices for rented excavator & rented chipping hammer. All other equipment was Rodan owned, not rentals.
PCO 19 – this was a lump sum PCO, so I do not have the invoice off hand. Attached is an invoice example of our cost for boom lift rental.
PCO 20 – this was a lump sum PCO, so I do not have the invoice off hand.
PCO 23 – this was a lump sum PCO, so I do not have the invoice off hand. Attached s an invoice example of our cost for concrete disposal (not including trucking to/from dump). I’m not sure if the attached concrete invoice is for this scope, but it has similar yardage to what was estimated.
PCO 25 – this was a lump sum PCO. No plants were ever specified or purchased, so no backup available.
PCO 27 – this was a lump sum PCO. No plants were ever specified or purchased, so no backup available.
PCO 29 – this was a lump sum PCO, so I do not have the invoice off hand.
PCO 30 – this was a lump sum PCO, so I do not have the invoice off hand.
PCO 32 – this was a lump sum PCO, so I do not have the invoice off hand.
City Response The City will consider this recommendation; the City’s current Change Order form contains many of these items. 891
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8 Contract Compliance – Drawing Rights Secured Confirmation LOW - MEDIUM RISK
The DBE did not provide the City with evidence of right of use for the Project’s design. Contract Article 2.3.D.4 states, regarding the Ownership of Design Documents, “DBE will obtain from its Subcontractors and Subconsultants rights and rights of use that correspond to the rights given by DBE to City in this Contract and DBE must provide evidence that such rights have been secured.” In a construction project, the right of use is typically granted to the owner or contractor, who has the legal right to access and use and reproduce the design drawings, specifications, and other documents related to the project. The right of use agreement typically outlines the responsibilities and obligations of the parties involved and specifies the conditions under which the design documents can be used. The right of use helps to protect the intellectual property rights of the designers and engineers who created the design documents. Without clear definitions of the right of use, disputes over ownership and control of the design documents could arise.
Having the right to use the drawings also allows the City to freely use plans and renderings for marketing purposes without infringing on the intellectual property rights of the architect or other parties who created the drawings. Upon request, the DBE provided correspondence between itself and the Project’s architect stating that such rights would have been implied with the executed design agreements; however, there was no proof that the City was provided with such confirmation as required by the contract.
Recommendation The City should consider including more specific contract language regarding the right of use and ensuring that all parties involved in the Project’s design understand their responsibilities regarding their design documents. If deemed necessary at this point in the Project, the City should request that the DBE obtain the necessary documentation from its subcontractors and subconsultants to secure the rights of use for the City.
Contractor Response n/a
City Response Section 2.3(D) of the General Conditions broadly confers that all ownership rights, including copyrights and possessory rights, in the Design Documents (as defined) as well as additional documents accrue to the City: “DBE is deemed to have conveyed the copyright in any Design Documents (at any stage of development), Shop Drawings, as-builts, or other documents (in paper or electronic form) developed by DBE for the Project, and City will retain all rights to such works, including the right to possession.” Section 2.5(B) of the General Conditions further provides that all Subcontractors (as defined) must be bound to all applicable provisions in the Contract Documents (as defined). Provided that each subcontract includes a provision to that effect, it is not necessary to itemize each provision in order to legally bind the Subcontractors to the provisions of Section 2.3(D) (or other provisions of the Contract Documents), particularly if the Contract Documents are incorporated by reference into the subcontracts. 892
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9 Contract Compliance – Incorrect Payment Application Calculations LOW RISK The DBE included a calculation error as part of Design Phase Application No. 8D. The DBE modified the G702 Original Contract Sum to include the original contract value plus the value of contract change order (CCO) #01. The CCO #01 value was also appropriately included on the “net by change orders” line of the G702, which resulted in duplicated contract sum/budget on the payment application. This appears to have been noted by the City as part of its review process but the payment application was not revised before the City finalized and processed. The error does not appear to have led to an overbilling of the Contract.
The following table summarizes the variance in Design Phase Application No. 8D:
G703 Line Value Note
1. ORIGINAL CONTRACT SUM $648,014.55 Value for CCO #01 is inaccurately included here. The original contract amount per the Contract is $645,000.
2. Net change by Change Orders $3,014.55 The accurate value for CCO#01.
3. CONTRACT SUM TO DATE (LINE 1 + 2) $651,029.10 The contract sum is inaccurate due to the double-counting of CCO #01 in both lines 1 and 2 above.
4. TOTAL COMPLETED & STORED TO DATE $648,014.55 Correct value Recommendation Billing controls should be implemented to ensure accurate calculations within payment application submissions, as required by the Contract terms payment applications with material calculation errors should be revised prior to finalization and processing to avoid overbillings and overpayment.
Contractor Response n/a
City Response The City will consider the recommendation. 893
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APPENDIX A: SKILLED AND TRAINED WORKFORCE DOCUMENTATION
CONTROLS
The following table indicates the Skilled and Trained Workforce documentation received (Y) and missing (N) (see Observation No. 3 for more detail):
PHASE
PAYMENT
APPLICATION
NUMBER
SKILLED AND TRAINED
WORKFORCE
DOCUMENTATION
Design 1 N
Design 2 N
Design 3 N
Design 4 N
Design 5 N
Design 6 N
Design 7 N
Design 8 N
Construction 1 N
Construction 2 N
Construction 3 N
Construction 4 N
Construction 5 N
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PHASE
PAYMENT
APPLICATION
NUMBER
SKILLED AND TRAINED
WORKFORCE
DOCUMENTATION
Construction 6 N
Construction 7 N
Construction 8 N
Construction 9 N
Construction 10 N
Construction 11 N
Construction 12 N
Construction 13 N
Construction 14 N
Construction 15 Y
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APPENDIX C: PAYMENT APPLICATION CONTROLS
The following table summarizes the payment application approval statuses per Project phase (see Observation No. 4 for additional detail).
PROJECT PHASE
PAYMENT APPLICATION
NUMBER
DBE SIGNATURE PROVIDED AS
REQUIRED?
GRIFFIN STRUCTURES
SIGNATURE AS REQUIRED?
Design 1 N N [1]
Design 2 N Y
Design 3 N Y
Design 4 Y Y
Design 5 Y Y
Design 6 Y Y
Design 7 Y Y
Design 8 Y Y
Construction 1 Y Y
Construction 2 Y Y
Construction 3 Y Y
Construction 4 Y Y
Construction 5 Y Y
Construction 6 Y Y
Construction 7 Y Y
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PROJECT PHASE
PAYMENT APPLICATION
NUMBER
DBE SIGNATURE PROVIDED AS
REQUIRED?
GRIFFIN STRUCTURES
SIGNATURE AS REQUIRED?
Construction 8 Y Y
Construction 9 Y Y
Construction 10 Y Y
Construction 11 Y Y
Construction 12 Y Y
Construction 13 Y Y
Construction 14 Y Y
[1] It appears that the payment application was submitted prior to Griffin Structures’ agreement with the City being in place and executed. 897
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CITY OF CUPERTINO
Agenda Item
23-12296 Agenda Date: 5/16/2023
Agenda #: 17.
Subject: Receive the Monthly Treasurer's Investment Report for March and April 2023 Receive the Monthly Treasurer's Investment Report for March and April 2023 CITY OF CUPERTINO Page 1 of 1 Printed on 5/10/2023
powered by Legistar™899
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CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending March 31, 2023
City of Cupertino
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SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Portfolio Holdings
SECTION 4 Transactions
Table of Contents As of March 31, 2023
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SECTION | Section 1 | Economic Update
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Economic Update
Economic trends have been decelerating along with tighter financial conditions and restrictive monetary policy. Recent data suggests positive but below trend growth this year. Although the pace of job growth is moderating, labor markets remain solid, and the U.S. consumer has demonstrated resiliency. Market participants and the Federal Reserve are maintaining very divergent views regarding the future trajectory of monetary policy. Given the cumulative effects of tighter monetary policy and stress in the banking sector, we believe the Federal Reserve is likely near a pause in their rate hiking campaign. If moderate growth continues, we believe the Fed will likely maintain the Federal Funds rate in restrictive territory until inflationary pressures subside.
At the March meeting, the Federal Open Market Committee voted unanimously to raise the target federal funds rate by
0.25% to a range of 4.75 – 5.00%. Fed Chair Powell reiterated the committee’s focus on bringing down inflation to their 2% target; however, the committee softened language about "ongoing increases" in rates in the prior statement to "some additional policy firming may be appropriate". The statement also emphasized that the U.S. banking system is “sound and resilient” and acknowledged the tightening of financial conditions. The Chandler team believes the FOMC is likely near a pause in their rate hiking cycle.
In March, the yield curve inversion narrowed. The 2-year Treasury yield plummeted 79 basis points to 4.03%, the 5-year Treasury yield plunged 61 basis points to 3.58%, and the 10-year Treasury yield fell 45 basis points to 3.47%. The inversion between the 2-year Treasury yield and 10-year Treasury yield declined to -56 basis points at March month-end versus -90 basis points at February month-end. There was no spread between the 2-year Treasury and 10-year Treasury yield one year ago – the yields were approximately equal. The inversion between 3-month and 10-year Treasuries widened to -128 in March from -89 basis points in February. The shape of the yield curve indicates that the probability of recession is increasing.
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Source: US Department of Labor Source: US Department of Labor Employment
The U.S. economy added 236,000 jobs in March, and the prior two months were revised downward by 17,000. Although the pace of job growth is moderating, employment remains strong, with the three-month moving average payrolls at 345,000 and the six-month moving average at 315,000. The private sector reported broad gains, led by leisure and hospitality. The unemployment rate fell to 3.5% due to a sharp rise in the number of people employed, and the participation rate increased to 62.6% from 62.5% in February. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 6.7% from the prior month at 6.8%. Average hourly earnings rose 4.2% year-over-year in March, down from a 4.6% increase in February. Job Openings dipped to 9.9 million, the first drop below 10 million since May of 2021. While the overall pace of hiring is slowing, levels remain consistent with a solid labor market.
0 100
200
300
400
500
600
700
800
900
1,000
MOM Change In (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
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Source: US Department of Labor Source: US Department of Commerce Inflation
The Consumer Price Index (CPI) increased in March 0.1% month-over-month and 5.0% year-over-year, down from 6.0% in February. The Core CPI, which excludes volatile food and energy components, rose 0.4% month-over-month and 5.6% year-over-year, accelerating from 5.5% in February. Housing remained the largest factor in headline CPI representing 60% of the increase. The Personal Consumption Expenditures (PCE) index rose 5.0% year-over-year in February, improving from a 5.3% year-over-year gain in January. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 4.6% year-over-year in February, the smallest increase since October 2021. Inflationary trends are declining but remain above the Fed's 2% target.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YOY( %) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY( %) Change
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Advance Retail Sales fell more than expected month-over-month at -1.0% in March, which translated to a year-over-year deceleration to 2.9% from 5.9% in February. The report indicated a broad-based cooling in discretionary spending as consumers are becoming more cautious about the outlook for the US economy. The Conference Board’s Consumer Confidence Index unexpectedly increased to 104.2 in March from 103.4 in February. While high inflation and recession concerns remain top of mind for many consumers, the strong labor market and low unemployment continue to support the strength in Consumer Confidence.
Source: US Department of Commerce Source: The Conference Board
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YOY (%) Change
80 90
100
110
120
130
140
Index Level
Consumer Confidence
Consumer
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Source: The Conference Board Source: Federal Reserve Bank of Chicago Economic Activity
The Conference Board’s Leading Economic Index (LEI) remained in negative territory for the eleventh consecutive month at -0.3% in February, unchanged from -0.3% in January. The LEI was down 6.5% year-over-year in February versus down 5.9% year-over-year in January. The consistent decline month-over-month continues to signal future contraction in the economy. The Chicago Fed National Activity Index (CFNAI) declined to -0.19 in February from +0.23 in January. On a 3-month moving average basis, the CFNAI increased to -0.13 in February from -0.27 in January, indicating a rate of growth below the historical average trend. -0.50
-0.25
0.00 0.25
0.50 0.75
1.00 Chicago Fed National Activity Index (CFNAI)
3 Month Average
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
Leading Economic Indicators (LEI)
MOM ( %) Change
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Source: US Department of Commerce Source: S&P
Housing
0 200
400
600
800
1000
1200
1400
1600
1800
2000
MOM Change (In Thousands of Units)
Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
21.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
YOY( %) Change
Total housing starts rose 9.8% month-over-month in February to 1,450,000 units and were down 18.4% compared to February 2022. Starts for both single-family and multi-family homes increased as mortgage rates declined from recent peaks. The 30-year fixed rate mortgage fell to an average of 6.24% according to Freddie Mac, down from a peak of 7.08% in October, but up from 4.67% a year ago. According to the Case-Shiller 20-City Home Price Index, the year-over-year increase continued its declining rate of gain to +2.55% in January from +4.62% in December, clearly displaying the impact of higher mortgage rates year-over-year, which have reduced demand for homebuying as affordability has declined. This is the lowest rate of annual appreciation since December 2019. 8 908
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Source: Institute for Supply Management Source: Federal Reserve Manufacturing
The Institute for Supply Management (ISM) manufacturing index fell to 46.3 in March from 47.7 in February. This is the fifth consecutive month of readings below 50.0, which is indicative of contraction in the manufacturing sector. All components weakened, including the headline, new orders, employment, and prices. Industrial production rose 0.4% in March due to an 8.4% increase in utilities production, as demand increased for heating. This equates to a +0.5% increase in industrial production from the prior year. Capacity utilization increased to 79.8% in March from an upwardly revised 79.6% in February, inching above its 1972-2021 average of 79.6%. 40 42
44 46
48 50
52 54
56 58
60 62
64 66
Institute of Supply Management Purchasing Manager Index
EXPANDING
CONTRACTING
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Industrial Production
YOY( %) Change
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Source: US Department of Commerce Source: US Department of Commerce 3/22 6/22 9/22 12/22
0.9% 1.4% 1.5% 0.7%
1.0% -2.8% -1.8% 0.8%
-3.1% 1.2% 2.9% 0.4%
-0.4% -0.2% 0.2% 0.4%
0.0% -0.1% 0.4% 0.3%
-1.6% -0.6% 3.3% 2.6%
Net Exports and Imports
Total
Gross Private Domestic Investment
Personal Consumption Expenditures
Components of GDP
Federal Government Expenditures
State and Local (Consumption and Gross
Investment) -35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
According to the third estimate, fourth quarter 2022 GDP growth was revised downward to 2.6% from 2.7%. The revision lower was primarily due to weaker growth in personal consumption expenditures and a wider trade gap in net exports. The consensus estimate calls for 1.6% growth in the first quarter and 1.0% growth for the full year 2023. 10 910
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Federal Reserve
Source: Federal Reserve Source: Bloomberg
At the March meeting, the Federal Open Market Committee voted unanimously to raise the target federal funds rate by 0.25% to a range of
4.75 – 5.00%. Fed Chair Powell reiterated the committee’s focus on bringing down inflation to their 2% target; however, the committee softened language about "ongoing increases" in rates in the prior statement to "some additional policy firming may be appropriate". The statement also emphasized that the U.S. banking system is “sound and resilient” and acknowledged the tightening in financial conditions.
Powell indicated that the extent of these effects is uncertain but speculated that tighter credit conditions could be equivalent to a rate hike or more. The Summary of Economic Projections was little changed, with the consensus target federal funds rate rising to 5.1% by the end of 2023 (implying one more quarter point hike), falling to 4.3% in 2024 (up from 4.1% previously), and declining to 3.1% by the end of 2025. No rate cuts were in the Fed’s base case for this year, contrary to the market consensus. Although projections imply policymakers are winding down interest rate hikes, the statement clearly reflected optionality for the Fed to remain data dependent. The Chandler team believes the Fed is likely near a pause in their rate hiking cycle.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
Effective Federal Funds Rate
Yield (%)
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
In $ millions
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Source: Bloomberg Source: Bloomberg
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Mar-23
Dec-22
Mar-22
Yield (%)
Bond Yields
At the end of March, the 2-year Treasury yield was 169 basis points higher, and the 10-Year Treasury yield was about 113 basis points higher, year-over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -56 basis points at March month-end versus -90 basis points at February month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3- month and 10-year Treasuries widened to -128 in March from -89 basis points in February. The shape of the yield curve indicates that the probability of recession is increasing.
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Section 2| SECTION | Section 2 | Account Profile
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Objectives
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.
Investment Objectives
The City of Cupertino’s investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities consistent with the investment policy and California Government Code.
As of March 31, 2023
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Compliance As of March 31, 2023
Category Standard Comment
Treasury Issues No Limitation Complies
Agency Issues 25% per Agency/GSE issuer; 20% max agency callable securities; Issued by Federal Agencies or U.S. Government Sponsored Enterprise obligations. Complies
Supranational "AA" rating category or better by a NRSRO; 30% maximum; 10% max per issuer; USD denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB. Complies Municipal Securities
"A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Obligations of the City, State of California, and any local agency within the State of California; Obligations of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states in addition to California.
Complies
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S. Complies Asset Backed/ Mortgage Backed/
Collateralized Mortgage Obligation
"AA" rating category or better by a NRSRO; 20% maximum; 5% max per issuer on Asset-Backed or Commercial Mortgage security; There is no issuer limitation on any Mortgage security where the issuer is the U.S. Treasury or a Federal Agency/GSE .
Complies
Negotiable Certificates of Deposit
(NCDs)
No rating required if amount of the NCD is insured up to the FDIC limit; If above FDIC insured limit, requires "A-1" shortterm rated or "A" long-term rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by nationally or state chartered banks, state or federal savings associations, or state or federal credit unions, or by a federally licensed or state-licensed branch of a foreign bank.
Complies
Certificates of Deposit (CDs)/Time
Deposit (TDs)
30% maximum; 5% max per issuer; Certificates of Deposit, Time Deposit, non-negotiable, and collateralized in accordance with California Government Code. Complies
Banker’s Acceptances "A-1" short-term rated or better by a NRSRO; or "A" long-term rating category or better by a NRSRO; 40% maximum; 5% max per issuer; 180 days max maturity Complies
Commercial Paper
"A-1" short term rated or better a NRSRO; "A" long-term issuer rating category or better by a NRSRO; 25% maximum; 5% max per issuer; 270 days max maturity; Issued by corporations organized and operating in the U.S. with assets > $500 million; 10% max outstanding paper of the issuing corporation.
Complies
Money Market Funds
20% maximum; Daily money market funds administered for or by trustees, paying agents and custodian banks contracted by a City of Cupertino as allowed under California Government Code; Only funds holding U.S. Treasury obligations, Government agency obligations or repurchase agreements collateralized by U.S. Treasury or Government agency obligations can be utilized.
Complies
Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 15 915
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Compliance As of March 31, 2023
Category Standard Comment
Repurchase Agreements 1 year max maturity; 102% collateralized; A PSA Master Repurchase Agreement is required between City of Cupertino and the broke/dealer or financial institution for all repurchase agreements; Not used by investment adviser Complies Prohibited Securities
Reverse Repurchase Agreement; Common stocks; Long-term (> 5 years maturity) notes and bonds; Special circumstances arise that necessitate purchase of securities beyond the 5-year limitation. On such occasions, request must be approved by City Council prior to purchase; Futures/Options; Inverse floaters; Ranges notes, Mortgage-derived, Interest-only strips; Zero interest accrual securities; Purchasing/selling securities on margin; Foreign currency denominated securities.
Complies
Minimum Budgeted Operating
Expenditures in Short Term Investments
Minimum 6 months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements Complies
Max Per Issuer 5% per issuer, unless otherwise specified in the policy Complies Maximum maturity 5 years Complies
City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 16 916
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Portfolio Summary As of March 31, 2023
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Portfolio Characteristics
City of Cupertino
03/31/23 12/31/22
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.62 2.69 2.67
Average Modified Duration 2.50 2.31 2.28
Average Purchase Yield n/a 1.88% 1.70%
Average Market Yield 4.02% 4.41% 4.63%
Average Quality** AAA AA/Aa1 AA/Aa1
Total Market Value 149,670,106 147,282,846
*ICE BofA 1-5 Yr US Treasury & Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
As of March 31, 2023
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City of Cupertino
Sector Distribution
ABS
12.2%
Agency
15.5%
CMO
3.8%
Corporate
27.1%
Money Market
Fund
0.5%
Municipal Bonds
0.5%
Supranational
6.3%
US Treasury
34.1%
March 31, 2023 December 31, 2022
ABS
13.4%
Agency
17.2%
CMO
3.9%
Corporate
27.2%
Money Market
Fund
0.5%
Municipal Bonds
0.5%
Supranational
6.3%
US Treasury
31.0%
As of March 31, 2023
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Duration Allocation As of March 31, 2023
City of Cupertino
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 03/31/23 1.3% 1.5% 6.1% 36.9% 30.8% 10.2% 13.2% 0.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years ABS
Agency
CMO
Corporate
Money Market Fund
Municipal Bonds
Supranational
US Treasury
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Portfolio Allocation & Duration Changes
City of Cupertino
As of March 31, 2023
Benchmark: ICE BofA 1-5 Yr US Treasury & Agency Index
92.2% 92.5%
95.6% 96.2%
98.6% 100.8% 99.3%
96.2%
80.0%
85.0%
90.0%
95.0%
100.0%
105.0%
110.0%
06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 Duration as a % of the Benchmark
0.5%
0.5%
3.9%
6.3%
13.4%
17.2%
27.2%
31.0%
0.5%
0.5%
3.8%
6.3%
12.2%
15.5%
27.1%
34.1%
Money Market
Fund
Municipal Bonds
CMO
Supranational
ABS
Agency
Corporate
US Treasury
Portfolio Allocation
03/31/23
12/31/22
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Issue Name Investment Type % Portfolio
Government of United States US Treasury 34.06%
Federal National Mortgage Association Agency 8.85%
Federal Home Loan Mortgage Corp Agency 4.36%
Federal Home Loan Mortgage Corp CMO 3.83%
Inter-American Dev Bank Supranational 3.33%
Federal Home Loan Bank Agency 2.30%
American Express ABS ABS 1.88%
John Deere ABS ABS 1.86%
Hyundai Auto Receivables ABS 1.75%
Royal Bank of Canada Corporate 1.67%
Toyota Motor Corp Corporate 1.61%
Bank of New York Corporate 1.55%
Bank of America Corp Corporate 1.55%
International Finance Corp Supranational 1.54%
JP Morgan Chase & Co Corporate 1.54%
Intl Bank Recon and Development Supranational 1.47%
Toronto Dominion Holdings Corporate 1.42%
Northwestern Mutual Glbl Corporate 1.29%
Paccar Financial Corporate 1.25%
GM Financial Automobile Leasing Trust ABS 1.19%
Bank of Montreal Chicago Corporate 1.16%
Amazon.com Inc Corporate 1.14%
Metlife Inc Corporate 1.13%
Salesforce.com Inc Corporate 1.12%
Prudential Financial Inc Corporate 1.11%
Air Products & Chemicals Corporate 1.11%
United Health Group Inc Corporate 1.08%
New York Life Global Funding Corporate 1.06%
Honda ABS ABS 1.03%
Berkshire Hathaway Corporate 1.02%
Toyota Lease Owner Trust ABS 0.97%
Guardian Life Global Funding Corporate 0.85%
US Bancorp Corporate 0.81%
Toyota ABS ABS 0.76%
Caterpillar Inc Corporate 0.71%
Hyundai Auto Lease Securitization ABS 0.71%
GM Financial Securitized Term Auto Trust ABS 0.66%
MasterCard Inc Corporate 0.65%
Issuers
City of Cupertino – Account #10659
As of March 31, 2023
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Issue Name Investment Type % Portfolio
Mass Mutual Insurance Corporate 0.60%
Charles Schwab Corp/The Corporate 0.58%
State of California Municipal Bonds 0.50%
BMW Vehicle Lease Trust ABS 0.49%
Wells Fargo 100% Treasury MMKT Fund Money Market Fund 0.48% Northern Trust Corp Corporate 0.45%
Morgan Stanley Corporate 0.41%
Verizon Master Trust ABS 0.38%
BMW ABS ABS 0.35%
Wal-Mart Stores Corporate 0.21%
Verizon Owner Trust ABS 0.17%
Nissan ABS ABS 0.02%
TOTAL 100.00%
Issuers
City of Cupertino – Account #10659
As of March 31, 2023
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AAA AA A <A NR
03/31/23 15.3% 58.5% 18.7% 0.0% 7.6%
12/31/22 16.0% 57.1% 18.8% 0.0% 8.0%
Source: S&P Ratings
March 31, 2023 vs. December 31, 2022
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
AAA AA A <A NR
03/31/23 12/31/22
Quality Distribution
City of Cupertino
As of March 31, 2023
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0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ City of Cupertino ICE BofA 1-5 Yr US Treasury & Agency Index Portfolio Compared to the Benchmark
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 1.3% 1.5% 6.1% 36.9% 30.8% 10.2% 13.2% 0.0%
Benchmark* 0.0% 0.0% 1.7% 35.8% 27.9% 20.2% 14.4% 0.0%
*ICE BofA 1-5 Yr US Treasury & Agency Index
Duration Distribution
City of Cupertino
As of March 31, 2023
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Total Rate of Return Annualized Since Inception January 31, 2019 Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Investment Performance
City of Cupertino
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
12 months 2 years 3 years 5 years 10 years Since Inception City of Cupertino ICE BofA 1-5 Yr US Treasury & Agency Index Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
City of Cupertino 1.64% -0.26% -1.95% -0.71% N/A N/A 0.86% ICE BofA 1-5 Yr US Treasury & Agency Index 1.81% -0.38% -2.06% -1.40% N/A N/A 0.78% As of March 31, 2023
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Purchase Yield as of 03/31/23 = 1.88%
0.00 0.50
1.00 1.50
2.00 2.50
Percent (%)
Historical Average Purchase Yield
City of Cupertino
As of March 31, 2023
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SECTION | Section 3 | Portfolio Holdings
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Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
89238EAC0 Toyota Lease Owner Trust 2021-A A3
0.390% Due 04/22/2024
332,089.16 03/23/2022
2.16%
325,447.37
329,989.18
99.05 5.58%
328,936.97
39.57 0.22%
(1,052.21)
Aaa / AAA
NR
1.06 0.18
44891VAC5 Hyundai Auto Lease Trust 2021-B A3
0.330% Due 06/17/2024
541,121.52 06/08/2021
0.34%
541,040.35
541,105.01
98.80 5.96%
534,628.60
79.36 0.36%
(6,476.41)
Aaa / AAA
NR
1.22 0.21
65479JAD5 Nissan Auto Receivables Owner 2019-C A3
1.930% Due 07/15/2024
33,753.24 Various
1.70%
33,920.69
33,804.32
99.86 6.61%
33,706.05
28.96 0.02%
(98.27)
Aaa / AAA
NR
1.29 0.03
43813DAC2 Honda Auto Receivables 2020-2 A3
0.820% Due 07/15/2024
34,769.09 05/18/2020
0.83%
34,766.36
34,768.24
99.00 5.34%
34,421.72
12.67 0.02%
(346.52)
Aaa / AAA
NR
1.29 0.22
47789KAC7 John Deere Owner Trust 2020-A A3
1.100% Due 08/15/2024
29,181.72 03/04/2020
1.11%
29,179.94
29,181.17
99.57 5.28%
29,054.98
14.27 0.02%
(126.19)
Aaa / NR
AAA
1.38 0.10
43813KAC6 Honda Auto Receivables Trust 2020-3 A3
0.370% Due 10/18/2024
206,120.78 09/22/2020
0.38%
206,090.50
206,114.67
98.22 5.37%
202,451.00
27.54 0.14%
(3,663.67)
NR / AAA
AAA
1.55 0.35
36262XAC8 GM Financial Auto Lease Trust 2021-3 A2
0.390% Due 10/21/2024
879,250.27 08/10/2021
0.39%
879,238.32
879,246.30
97.98 5.51%
861,501.72
104.78
0.58%
(17,744.58)
NR / AAA
AAA
1.56 0.39
47787NAC3 John Deere Owner Trust 2020-B A3
0.510% Due 11/15/2024
59,352.21 07/14/2020
0.52%
59,343.16
59,350.15
99.01 4.91%
58,761.71
13.45 0.04%
(588.44)
Aaa / NR
AAA
1.63 0.22
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3
0.330% Due 12/26/2024
303,787.63 09/08/2021
0.34%
303,756.27
303,777.52
98.01 5.83%
297,734.66
16.71 0.20%
(6,042.86)
Aaa / NR
AAA
1.74 0.36
89236XAC0 Toyota Auto Receivables 2020-D A3
0.350% Due 01/15/2025
151,883.81 10/06/2020
0.36%
151,855.52
151,871.89
98.39 5.80%
149,444.25
23.63 0.10%
(2,427.64)
NR / AAA
AAA
1.80 0.29
44891WAC3 Hyundai Auto Lease Trust 2022-A A3
1.160% Due 01/15/2025
540,000.00 01/11/2022
1.16%
539,988.07
539,994.45
97.25 5.60%
525,140.82
278.40
0.35%
(14,853.63)
Aaa / AAA
NR
1.80 0.62
92290BAA9 Verizon Owner Trust 2020-B A
0.470% Due 02/20/2025
263,143.40 08/04/2020
0.48%
263,088.13
263,120.30
98.86 5.33%
260,140.41
37.79 0.17%
(2,979.89)
Aaa / NR
AAA
1.90 0.23
89238LAC4 Toyota Lease Owner Trust 2022-A A3
1.960% Due 02/20/2025
1,150,000.00 02/23/2022
1.98%
1,149,818.99
1,149,904.23
97.04 5.54%
1,115,918.60
688.72
0.75%
(33,985.63)
NR / AAA
AAA
1.90 0.83
36265MAC9 GM Financial Auto Lease Trust 2022-1 A3
1.900% Due 03/20/2025
945,000.00 02/15/2022
1.91%
944,991.87
944,996.02
97.34 5.41%
919,870.56
548.63
0.61%
(25,125.46)
Aaa / NR
AAA
1.97 0.76
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
450,000.00 01/11/2022
1.11%
449,932.73
449,969.66
97.50 5.66%
438,764.85
82.50 0.29%
(11,204.81)
NR / AAA
AAA
1.99 0.55
43813GAC5 Honda Auto Receivables Trust 2021-1 A3
0.270% Due 04/21/2025
162,041.83 02/17/2021
0.27%
162,038.87
162,040.89
97.27 5.87%
157,620.03
12.15 0.11%
(4,420.86)
Aaa / NR
AAA
2.06 0.48
89240BAC2 Toyota Auto Receivables Owners 2021-A A3
0.260% Due 05/15/2025
590,848.46 02/02/2021
0.27%
590,738.80
590,814.62
97.46 5.57%
575,832.05
68.28 0.38%
(14,982.57)
Aaa / NR
AAA
2.13 0.48
As of March 31, 2023
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Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
44933LAC7 Hyundai Auto Receivables Trust 2021-A A3
0.380% Due 09/15/2025
392,283.30 04/20/2021
0.38%
392,242.03
392,268.10
97.24 5.26%
381,457.85
66.25 0.25%
(10,810.25)
NR / AAA
AAA
2.46 0.56
43815GAC3 Honda Auto Receivables Trust 2021-4 A3
0.880% Due 01/21/2026
460,000.00 11/16/2021
0.89%
459,903.03
459,943.37
95.51 5.26%
439,345.08
112.44
0.29%
(20,598.29)
Aaa / NR
AAA
2.81 1.03
47789QAC4 John Deere Owner Trust 2021-B A3
0.520% Due 03/16/2026
580,000.00 07/13/2021
0.52%
579,948.26
579,972.29
95.67 5.59%
554,865.70
134.04
0.37%
(25,106.59)
Aaa / NR
AAA
2.96 0.86
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
430,000.00 11/09/2021
0.71%
429,990.84
429,994.71
95.33 5.42%
409,919.43
135.69
0.27%
(20,075.28)
NR / AAA
AAA
3.04 1.00
43815BAC4 Honda Auto Receivables Trust 2022-1 A3
1.880% Due 05/15/2026
740,000.00 02/15/2022
1.89%
739,888.70
739,926.71
95.88 4.95%
709,483.88
618.31
0.47%
(30,442.83)
Aaa / AAA
NR
3.13 1.36
44935FAD6 Hyundai Auto Receivables Trust 2021-C A3
0.740% Due 05/15/2026
1,330,000.00 Various
2.03%
1,296,371.65
1,308,620.05
95.40 5.49%
1,268,845.28
437.42
0.85%
(39,774.77)
NR / AAA
AAA
3.13 0.97
05602RAD3 BMW Vehicle Owner Trust 2022-A A3
3.210% Due 08/25/2026
530,000.00 05/10/2022
3.23%
529,972.44
529,980.17
97.71 4.90%
517,885.79
283.55
0.35%
(12,094.38)
Aaa / AAA
NR
3.41 1.38
362554AC1 GM Financial Securitized Term 2021-4 A3
0.680% Due 09/16/2026
350,000.00 10/13/2021
0.68%
349,991.08
349,994.86
94.86 5.77%
332,024.70
99.17 0.22%
(17,970.16)
Aaa / AAA
NR
3.47 1.02
47787JAC2 John Deere Owner Trust 2022-A A3
2.320% Due 09/16/2026
450,000.00 03/10/2022
2.34%
449,900.46
449,930.11
96.65 5.05%
434,938.95
464.00
0.29%
(14,991.16)
Aaa / NR
AAA
3.47 1.24
448977AD0 Hyundai Auto Receivables Trust 2022-A A3
2.220% Due 10/15/2026
1,010,000.00 03/09/2022
2.23%
1,009,961.12
1,009,973.60
96.14 5.00%
970,973.60
996.53
0.65%
(39,000.00)
NR / AAA
AAA
3.55 1.41
380146AC4 GM Financial Auto Receivables 2022-1 A3
1.260% Due 11/16/2026
295,000.00 01/11/2022
1.27%
294,974.36
294,983.60
95.01 5.68%
280,288.35
154.88
0.19%
(14,695.25)
NR / AAA
AAA
3.63 1.14
362585AC5 GM Financial Securitized ART 2022-2 A3
3.100% Due 02/16/2027
390,000.00 04/05/2022
3.13%
389,918.49
389,941.47
96.84 5.16%
377,662.35
503.75
0.25%
(12,279.12)
Aaa / AAA
NR
3.88 1.56
47800AAC4 John Deere Owner Trust 2022-B A3
3.740% Due 02/16/2027
655,000.00 07/12/2022
3.77%
654,937.45
654,949.66
98.07 4.89%
642,376.84
1,088.76
0.43%
(12,572.82)
Aaa / NR
AAA
3.88 1.72
02589BAA8 American Express Credit Accoun 22-1 A
2.210% Due 03/15/2027
1,545,000.00 03/21/2022
2.69%
1,524,359.77
1,531,454.85
95.46 4.70%
1,474,798.29
1,517.53
0.99%
(56,656.56)
Aaa / NR
AAA
3.96 1.86
02582JJT8 American Express Credit Trust 2022-2 A
3.390% Due 05/17/2027
1,375,000.00 05/17/2022
3.42%
1,374,695.85
1,374,783.15
97.66 4.60%
1,342,783.75
2,071.67
0.90%
(31,999.40)
NR / AAA
AAA
4.13 1.99
47800BAC2 John Deere Owner Trust 2022-C A3
5.090% Due 06/15/2027
1,050,000.00 10/12/2022
5.15%
1,049,918.52
1,049,928.53
100.81
4.74%
1,058,522.85
2,375.33
0.71%
8,594.32
Aaa / NR
AAA
4.21 1.98
As of March 31, 2023
30 930
CC 05-16-2023
930 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
92348KAV5 Verizon Master Trust 2022-5 A1A
3.720% Due 07/20/2027
570,000.00 08/02/2022
3.75%
569,974.92
569,980.69
98.64 5.10%
562,220.64
647.90
0.38%
(7,760.05)
NR / AAA
AAA
4.31 1.32
TOTAL ABS 18,824,626.42 2.03%
18,762,184.91
18,786,674.54 5.23%
18,282,322.31
13,784.63
12.22%
(504,352.23)
Aaa / AAA
AAA
2.94 1.11
Agency
3137EAFA2 FHLMC Note
0.250% Due 12/04/2023
855,000.00 12/02/2020
0.28%
854,153.55
854,809.07
96.98 4.85%
829,173.87
694.69
0.55%
(25,635.20)
Aaa / AA+
AAA
0.68 0.66
3130A1XJ2 FHLB Note
2.875% Due 06/14/2024
1,500,000.00 06/18/2019
1.96%
1,564,890.20
1,515,670.52
98.11 4.50%
1,471,660.50
12,817.70
0.99%
(44,010.02)
Aaa / AA+
NR
1.21 1.16
3135G0V75 FNMA Note
1.750% Due 07/02/2024
1,500,000.00 07/16/2019
1.96%
1,484,895.00
1,496,182.07
96.48 4.67%
1,447,206.00
6,489.58
0.97%
(48,976.07)
Aaa / AA+
AAA
1.26 1.21
3130A2UW4 FHLB Note
2.875% Due 09/13/2024
2,000,000.00 09/13/2019
1.79%
2,103,380.00
2,030,095.82
98.07 4.26%
1,961,428.00
2,875.00
1.31%
(68,667.82)
Aaa / AA+
AAA
1.46 1.40
3135G0W66 FNMA Note
1.625% Due 10/15/2024
1,975,000.00 Various
1.73%
1,965,802.75
1,972,084.20
96.09 4.28%
1,897,771.58
14,798.79
1.28%
(74,312.62)
Aaa / AA+
AAA
1.55 1.48
3135G0X24 FNMA Note
1.625% Due 01/07/2025
1,295,000.00 Various
1.38%
1,309,953.95
1,300,500.90
95.59 4.24%
1,237,934.53
4,910.21
0.83%
(62,566.37)
Aaa / AA+
AAA
1.78 1.71
3137EAEP0 FHLMC Note
1.500% Due 02/12/2025
2,365,000.00 02/13/2020
1.52%
2,363,178.95
2,364,318.48
95.19 4.21%
2,251,236.41
4,828.54
1.51%
(113,082.07)
Aaa / AA+
AAA
1.87 1.80
3135G03U5 FNMA Note
0.625% Due 04/22/2025
1,860,000.00 04/22/2020
0.67%
1,856,168.40
1,858,420.31
92.98 4.22%
1,729,349.88
5,134.38
1.16%
(129,070.43)
Aaa / AA+
AAA
2.06 2.00
3135G04Z3 FNMA Note
0.500% Due 06/17/2025
2,500,000.00 Various
0.50%
2,499,227.30
2,499,751.23
92.41 4.13%
2,310,277.50
3,611.11
1.55%
(189,473.73)
Aaa / AA+
AAA
2.22 2.15
3137EAEU9 FHLMC Note
0.375% Due 07/21/2025
1,250,000.00 07/21/2020
0.48%
1,243,775.00
1,247,126.40
92.00 4.04%
1,150,037.50
911.46
0.77%
(97,088.90)
Aaa / AA+
AAA
2.31 2.25
3135G05X7 FNMA Note
0.375% Due 08/25/2025
2,500,000.00 Various
0.48%
2,487,983.75
2,494,055.94
91.55 4.11%
2,288,837.51
937.51
1.53%
(205,218.43)
Aaa / AA+
AAA
2.41 2.34
3137EAEX3 FHLMC Note
0.375% Due 09/23/2025
2,500,000.00 Various
0.46%
2,489,362.80
2,494,605.84
91.36 4.08%
2,284,012.50
208.33
1.53%
(210,593.34)
Aaa / AA+
AAA
2.48 2.42
3135G06G3 FNMA Note
0.500% Due 11/07/2025
2,500,000.00 Various
0.56%
2,492,700.00
2,496,186.54
91.49 3.98%
2,287,272.50
5,000.00
1.53%
(208,914.04)
Aaa / AA+
AAA
2.61 2.53
TOTAL Agency 24,600,000.00 1.03%
24,715,471.65
24,623,807.32 4.23%
23,146,198.28
63,217.30
15.51%
(1,477,609.04)
Aaa / AA+
AAA
1.94 1.88
As of March 31, 2023
31 931
CC 05-16-2023
931 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
CMO
3137BFE98 FHLMC K041 A2
3.171% Due 10/25/2024
1,300,000.00 07/01/2021
0.72%
1,398,414.06
1,345,710.08
97.50 4.85%
1,267,458.40
3,435.25
0.85%
(78,251.68)
Aaa / AAA
AAA
1.57 1.40
3137BLMZ8 FHLMC K049 A2
3.010% Due 07/25/2025
1,000,000.00 07/01/2021
0.87%
1,079,687.50
1,045,019.33
96.78 4.50%
967,814.00
2,508.33
0.65%
(77,205.33)
NR / NR
AAA
2.32 2.08
3137BLW95 FHLMC K050 A2
3.334% Due 08/25/2025
950,000.00 11/16/2021
1.17%
1,018,132.81
993,017.98
97.39 4.50%
925,178.40
2,639.42
0.62%
(67,839.58)
NR / NR
AAA
2.41 2.12
3137BM7C4 FHLMC K051 A2
3.308% Due 09/25/2025
440,000.00 03/15/2022
2.21%
453,079.69
449,154.75
97.29 4.48%
428,072.48
1,212.93
0.29%
(21,082.27)
NR / NR
AAA
2.49 2.20
3137BN6G4 FHLMC KO53
2.995% Due 12/25/2025
570,000.00 03/15/2022
2.29%
582,001.17
578,700.41
96.45 4.42%
549,750.18
1,422.63
0.37%
(28,950.23)
NR / NR
AAA
2.74 2.42
3137BSP72 FHLMC K058 A2
2.653% Due 08/25/2026
650,000.00 11/12/2021
1.35%
687,451.17
676,551.53
94.81 4.30%
616,276.70
1,437.04
0.41%
(60,274.83)
NR / NR
AAA
3.41 3.14
3137FBBX3 FHLMC K068 A2
3.244% Due 08/25/2027
1,000,000.00 09/28/2022
4.41%
950,664.06
955,701.20
96.10 4.22%
961,006.00
2,703.33
0.64%
5,304.80
Aaa / NR
NR
4.41 3.95
TOTAL CMO 5,910,000.00 1.74%
6,169,430.46
6,043,855.28 4.50%
5,715,556.16
15,358.93
3.83%
(328,299.12)
Aaa / AAA
AAA
2.69 2.40
Corporate
89114QCA4 Toronto Dominion Bank Note
2.650% Due 06/12/2024
1,500,000.00 09/11/2019
2.24%
1,527,255.00
1,506,884.48
97.21 5.08%
1,458,156.00
12,035.42
0.98%
(48,728.48)
A1 / A
AA1.201.15
06367TQW3 Bank of Montreal Note
0.625% Due 07/09/2024
600,000.00 02/09/2022
1.89%
582,216.00
590,592.08
94.55 5.10%
567,309.60
854.17
0.38%
(23,282.48)
A2 / AAA1.28
1.24 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022
0.625% Due 07/15/2024
1,760,000.00 Various
0.87%
1,748,937.40
1,754,558.20
94.98 4.68%
1,671,626.88
2,322.23
1.12%
(82,931.32)
A2 / A+
NR
1.29 1.25
78013XZU5 Royal Bank of Canada Note
2.550% Due 07/16/2024
1,500,000.00 Various
1.98%
1,533,359.18
1,510,478.41
96.74 5.18%
1,451,172.00
7,968.76
0.97%
(59,306.41)
A1 / A
AA1.301.24
91159HHX1 US Bancorp Callable Note Cont 6/28/2024
2.400% Due 07/30/2024
1,250,000.00 10/10/2019
2.07%
1,268,262.50
1,254,826.06
96.13 5.45%
1,201,583.75
5,083.33
0.81%
(53,242.31)
A2 / A+
A+
1.33 1.28
009158AV8 Air Products & Chemicals Callable Note Cont 4/30/2024
3.350% Due 07/31/2024
1,675,000.00 08/07/2019
2.07%
1,771,212.00
1,697,018.39
98.38 4.61%
1,647,880.08
9,507.95
1.11%
(49,138.31)
A2 / A
NR
1.34 1.28
69371RR40 Paccar Financial Corp Note
0.500% Due 08/09/2024
680,000.00 08/03/2021
0.52%
679,632.80
679,833.82
94.35 4.85%
641,605.84
491.11
0.43%
(38,227.98)
A1 / A+
NR
1.36 1.32
As of March 31, 2023
32 932
CC 05-16-2023
932 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
69371RQ25 Paccar Financial Corp Note
2.150% Due 08/15/2024
370,000.00 08/08/2019
2.20%
369,182.30
369,775.32
96.45 4.85%
356,872.40
1,016.47
0.24%
(12,902.92)
A1 / A+
NR
1.38 1.32
14913Q3B3 Caterpillar Finl Service Note
2.150% Due 11/08/2024
1,100,000.00 01/28/2020
1.92%
1,111,517.00
1,103,876.42
96.35 4.54%
1,059,841.20
9,394.31
0.71%
(44,035.22)
A2 / A
A
1.61 1.54
74153WCQ0 Pricoa Global Funding Note
1.150% Due 12/06/2024
885,000.00 12/01/2021
1.19%
884,088.45
884,487.57
94.30 4.72%
834,537.30
3,251.15
0.56%
(49,950.27)
Aa3 / AAAA1.69
1.62 89114TZL9 Toronto-Dominion Bank Note
1.450% Due 01/10/2025
700,000.00 03/15/2022
2.79%
674,737.00
684,057.33
94.09 4.97%
658,662.20
2,283.75
0.44%
(25,395.13)
A1 / A
NR
1.78 1.71
89236TJT3 Toyota Motor Credit Corp Note
1.450% Due 01/13/2025
1,215,000.00 01/10/2022
1.50%
1,213,371.90
1,214,029.97
94.67 4.60%
1,150,210.13
3,817.13
0.77%
(63,819.84)
A1 / A+
A+
1.79 1.72
64952WEK5 New York Life Global Note
1.450% Due 01/14/2025
1,680,000.00 01/11/2022
1.49%
1,678,185.60
1,678,917.32
94.47 4.71%
1,587,114.48
5,210.33
1.06%
(91,802.84)
Aaa / AA+
AAA
1.79 1.72
69371RR73 Paccar Financial Corp Note
2.850% Due 04/07/2025
885,000.00 03/31/2022
2.86%
884,769.90
884,845.27
96.54 4.67%
854,389.62
12,190.88
0.58%
(30,455.65)
A1 / A+
NR
2.02 1.90
78016EZ59 Royal Bank of Canada Note
3.375% Due 04/14/2025
1,050,000.00 04/07/2022
3.39%
1,049,611.50
1,049,736.27
97.04 4.92%
1,018,959.90
16,439.06
0.69%
(30,776.37)
A1 / A
AA2.041.91
06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/2025
3.350% Due 04/25/2025
1,370,000.00 04/19/2022
3.35%
1,369,808.20
1,369,867.75
96.30 5.26%
1,319,346.99
19,887.83
0.89%
(50,520.76)
A1 / A
AA2.071.93
06367WB85 Bank of Montreal Note
1.850% Due 05/01/2025
1,240,000.00 07/23/2021
0.85%
1,285,656.80
1,265,287.35
93.66 5.10%
1,161,369.12
9,558.33
0.78%
(103,918.23)
A2 / AAA2.09
1.99 46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024
0.824% Due 06/01/2025
1,370,000.00 05/24/2021
0.78%
1,371,773.90
1,370,691.11
94.76 5.37%
1,298,227.08
3,762.93
0.87%
(72,464.03)
A1 / AAA2.17
2.08 46647PCK0 JP Morgan Chase & Co Callable Note Cont 6/23/2024
0.969% Due 06/23/2025
655,000.00 Various
0.95%
655,406.85
655,166.83
94.73 5.36%
620,483.47
1,727.78
0.42%
(34,683.36)
A1 / AAA2.23
2.13 66815L2J7 Northwestern Mutual Glbl Note
4.000% Due 07/01/2025
1,170,000.00 06/27/2022
4.01%
1,169,602.20
1,169,701.65
98.53 4.69%
1,152,855.99
11,700.00
0.78%
(16,845.66)
Aaa / AA+
AAA
2.25 2.10
74153WCM9 Pricoa Global Funding Note
0.800% Due 09/01/2025
904,000.00 04/06/2022
3.26%
832,972.72
853,445.96
90.72 4.92%
820,140.44
602.67
0.55%
(33,305.52)
Aa3 / AAAA2.42
2.34 06406HCQ0 Bank of New York Callable Note Cont 10/18/2025
3.950% Due 11/18/2025
1,000,000.00 04/05/2022
3.20%
1,024,910.00
1,017,977.68
96.71 5.30%
967,124.00
14,593.06
0.66%
(50,853.68)
A1 / A
AA2.642.42
40139LBC6 Guardian Life Glob Fun Note
0.875% Due 12/10/2025
1,400,000.00 Various
1.12%
1,385,860.00
1,390,889.78
90.19 4.80%
1,262,657.20
3,777.08
0.85%
(128,232.58)
Aa1 / AA+
NR
2.70 2.59
As of March 31, 2023
33 933
CC 05-16-2023
933 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
66815L2A6 Northwestern Mutual Glbl Note
0.800% Due 01/14/2026
850,000.00 12/06/2021
1.47%
827,449.50
834,660.24
89.92 4.70%
764,347.20
1,454.44
0.51%
(70,313.04)
Aaa / AA+
AAA
2.79 2.69
06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025
2.015% Due 02/13/2026
600,000.00 05/24/2021
1.05%
620,988.00
610,563.50
93.69 5.61%
562,140.60
1,612.00
0.38%
(48,422.90)
A2 / AAA2.88
1.79 46647PBK1 JP Morgan Chase & Co Callable Note Cont 4/22/2025
2.083% Due 04/22/2026
401,000.00 05/20/2021
1.11%
415,969.33
408,877.49
93.57 5.42%
375,228.53
3,689.17
0.25%
(33,648.96)
A1 / AAA3.06
1.95 6174468Q5 Morgan Stanley Callable Note Cont 4/28/2025
2.188% Due 04/28/2026
650,000.00 05/23/2022
4.82%
615,699.50
623,138.45
93.83 5.36%
609,868.35
6,044.35
0.41%
(13,270.10)
A1 / AA+3.08
1.97 023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026
1.000% Due 05/12/2026
1,875,000.00 05/10/2021
1.09%
1,866,900.00
1,869,956.35
90.66 4.23%
1,699,951.88
7,239.58
1.14%
(170,004.47)
A1 / AA
AA3.123.00
91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026
1.150% Due 05/15/2026
1,035,000.00 Various
1.37%
1,025,051.35
1,027,947.22
90.93 4.29%
941,073.75
4,496.50
0.63%
(86,873.47)
A3 / A+
A
3.13 2.99
89236TJK2 Toyota Motor Credit Corp Note
1.125% Due 06/18/2026
1,385,000.00 06/15/2021
1.13%
1,384,390.60
1,384,608.20
90.18 4.44%
1,248,936.22
4,457.97
0.84%
(135,671.98)
A1 / A+
A+
3.22 3.08
06051GJD2 Bank of America Corp Callable Note Cont 6/19/2025
1.319% Due 06/19/2026
700,000.00 07/16/2021
1.27%
701,274.00
700,721.64
91.41 5.48%
639,877.00
2,616.02
0.43%
(60,844.64)
A2 / AAA3.22
2.13 57629WDE7 Mass Mutual Global funding Note
1.200% Due 07/16/2026
1,000,000.00 08/19/2021
1.15%
1,002,230.00
1,001,499.14
88.88 4.90%
888,756.00
2,500.00
0.60%
(112,743.14)
Aa3 / AA+
AA+
3.30 3.15
58989V2D5 Met Tower Global Funding Note
1.250% Due 09/14/2026
770,000.00 09/07/2021
1.27%
769,291.60
769,510.40
88.74 4.83%
683,288.76
454.51
0.46%
(86,221.64)
Aa3 / AAAA3.46
3.30 931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026
1.050% Due 09/17/2026
350,000.00 09/08/2021
1.09%
349,338.50
349,541.73
90.15 4.13%
315,512.40
142.92
0.21%
(34,029.33)
Aa2 / AA
AA
3.47 3.33
59217GER6 Metlife Note
1.875% Due 01/11/2027
1,115,000.00 01/03/2022
1.90%
1,113,728.90
1,114,038.67
89.36 5.00%
996,336.13
4,645.83
0.67%
(117,702.54)
Aa3 / AAAA3.79
3.55 808513BY0 Charles Schwab Corp Callable Note Cont 2/3/2027
2.450% Due 03/03/2027
960,000.00 03/01/2022
2.46%
959,729.90
959,787.09
89.57 5.44%
859,878.72
1,829.34
0.58%
(99,908.37)
A2 / A
A
3.93 3.65
084664CZ2 Berkshire Hathaway Callable Note Cont 2/15/2027
2.300% Due 03/15/2027
1,615,000.00 03/07/2022
2.30%
1,614,693.15
1,614,757.34
94.68 3.76%
1,529,046.47
1,650.89
1.02%
(85,710.87)
Aa2 / AA
A+
3.96 3.72
As of March 31, 2023
34 934
CC 05-16-2023
934 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
06051GHT9 Bank of America Corp Callable Note 1X 4/23/2026
3.559% Due 04/23/2027
1,150,000.00 Various
4.85%
1,114,222.54
1,119,155.62
94.98 5.35%
1,092,272.30
17,963.07
0.74%
(26,883.32)
A2 / AAA4.07
2.80 665859AW4 Northern Trust Company Callable Note Cont 4/10/2027
4.000% Due 05/10/2027
670,000.00 05/05/2022
4.04%
668,914.60
669,108.38
97.97 4.55%
656,368.18
10,496.67
0.45%
(12,740.20)
A2 / A+
A+
4.11 3.68
91324PEG3 United Health Group Inc Callable Note Cont 4/15/2027
3.700% Due 05/15/2027
675,000.00 05/17/2022
3.69%
675,316.70
675,261.74
97.81 4.28%
660,241.13
9,435.00
0.45%
(15,020.61)
A3 / A+
A
4.13 3.72
57636QAW4 MasterCard Inc Callable Note Cont 2/9/28
4.875% Due 03/09/2028
945,000.00 03/06/2023
4.90%
944,083.35
944,094.89
102.92
4.20%
972,633.69
2,815.31
0.65%
28,538.80
Aa3 / A+
NR
4.95 4.29
TOTAL Corporate 42,705,000.00 2.08%
42,741,600.72
42,634,173.11 4.84%
40,257,882.98
241,019.30
27.06%
(2,376,290.13)
A1 / A+
AA2.482.26
Money Market Fund
94975H270 Wells Fargo 100% Treasury Money Mkt Fund 724,920.33 Various
4.15%
724,920.33
724,920.33
1.00 4.15%
724,920.33
0.00 0.48%
0.00 Aaa / AAA
NR
0.00 0.00
TOTAL Money Market Fund 724,920.33 4.15%
724,920.33
724,920.33 4.15%
724,920.33
0.00 0.48%
0.00 Aaa / AAA
NR
0.00 0.00
Municipal Bonds
13063DRK6 California State Taxable GO
2.400% Due 10/01/2024
755,000.00 10/16/2019
1.91%
772,342.35
760,277.69
96.96 4.52%
732,070.65
9,060.00
0.50%
(28,207.04)
Aa2 / AAAA1.51
1.43 TOTAL Municipal Bonds 755,000.00 1.91%
772,342.35
760,277.69 4.52%
732,070.65
9,060.00
0.50%
(28,207.04)
Aa2 / AAAA1.51
1.43 Supranational
4581X0DP0 Inter-American Dev Bank Note
0.250% Due 11/15/2023
2,800,000.00 07/01/2021
0.37%
2,792,300.00
2,797,963.34
97.17 4.92%
2,720,830.00
2,644.44
1.82%
(77,133.34)
Aaa / AAA
NR
0.63 0.61
45950KCT5 International Finance Corp Note
0.375% Due 07/16/2025
2,500,000.00 05/27/2021
0.66%
2,471,150.00
2,483,965.84
92.19 3.98%
2,304,650.00
1,953.13
1.54%
(179,315.84)
Aaa / AAA
NR
2.30 2.24
459058JL8 Intl. Bank Recon & Development Note
0.500% Due 10/28/2025
2,400,000.00 Various
0.60%
2,388,859.25
2,393,893.71
91.64 3.95%
2,199,264.00
5,100.01
1.47%
(194,629.71)
Aaa / AAA
AAA
2.58 2.51
As of March 31, 2023
35 935
CC 05-16-2023
935 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
4581X0DV7 Inter-American Dev Bank Note
0.875% Due 04/20/2026
2,460,000.00 04/13/2021
0.97%
2,448,733.20
2,453,120.22
91.35 3.91%
2,247,180.48
9,626.46
1.51%
(205,939.74)
Aaa / AAA
AAA
3.06 2.95
TOTAL Supranational 10,160,000.00 0.64%
10,101,042.45
10,128,943.11 4.22%
9,471,924.48
19,324.04
6.34%
(657,018.63)
Aaa / AAA
AAA
2.06 2.00
US Treasury
912828X70 US Treasury Note
2.000% Due 04/30/2024
1,700,000.00 06/10/2019
1.92%
1,705,976.56
1,701,322.54
97.25 4.63%
1,653,316.30
14,276.24
1.11%
(48,006.24)
Aaa / AA+
AAA
1.08 1.04
912828XX3 US Treasury Note
2.000% Due 06/30/2024
2,000,000.00 Various
1.80%
2,018,574.22
2,004,797.55
97.03 4.46%
1,940,626.00
10,055.25
1.30%
(64,171.55)
Aaa / AA+
AAA
1.25 1.21
912828D56 US Treasury Note
2.375% Due 08/15/2024
1,700,000.00 09/18/2019
1.71%
1,753,191.41
1,714,900.72
97.34 4.39%
1,654,710.30
5,018.99
1.11%
(60,190.42)
Aaa / AA+
AAA
1.38 1.33
912828YY0 US Treasury Note
1.750% Due 12/31/2024
2,100,000.00 03/15/2022
1.97%
2,087,203.13
2,091,978.46
95.94 4.18%
2,014,687.50
9,238.26
1.35%
(77,290.96)
Aaa / AA+
AAA
1.76 1.69
912828ZC7 US Treasury Note
1.125% Due 02/28/2025
1,500,000.00 03/18/2020
0.81%
1,523,144.53
1,508,952.98
94.55 4.11%
1,418,320.50
1,467.39
0.95%
(90,632.48)
Aaa / AA+
AAA
1.92 1.86
91282CED9 US Treasury Note
1.750% Due 03/15/2025
3,100,000.00 Various
2.23%
3,057,617.20
3,071,931.63
95.65 4.09%
2,965,100.40
2,506.11
1.98%
(106,831.23)
Aaa / AA+
AAA
1.96 1.89
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
2,500,000.00 03/21/2022
2.24%
2,360,839.85
2,406,817.87
92.75 4.04%
2,318,750.00
3,936.46
1.55%
(88,067.87)
Aaa / AA+
AAA
2.08 2.03
91282CAB7 US Treasury Note
0.250% Due 07/31/2025
1,500,000.00 03/12/2021
0.72%
1,469,765.63
1,483,890.13
91.83 3.94%
1,377,480.00
621.55
0.92%
(106,410.13)
Aaa / AA+
AAA
2.34 2.29
91282CAM3 US Treasury Note
0.250% Due 09/30/2025
2,400,000.00 Various
0.56%
2,366,140.63
2,381,498.42
91.51 3.84%
2,196,280.80
16.39 1.47%
(185,217.62)
Aaa / AA+
AAA
2.50 2.45
91282CAT8 US Treasury Note
0.250% Due 10/31/2025
2,450,000.00 Various
0.49%
2,422,492.19
2,435,115.43
91.18 3.87%
2,233,807.10
2,571.82
1.49%
(201,308.33)
Aaa / AA+
AAA
2.59 2.52
91282CAZ4 US Treasury Note
0.375% Due 11/30/2025
2,250,000.00 03/26/2021
0.77%
2,209,658.20
2,226,981.30
91.22 3.87%
2,052,423.00
2,827.95
1.37%
(174,558.30)
Aaa / AA+
AAA
2.67 2.60
91282CBH3 US Treasury Note
0.375% Due 01/31/2026
2,500,000.00 05/27/2021
0.75%
2,456,445.31
2,473,597.04
90.78 3.84%
2,269,432.50
1,553.87
1.52%
(204,164.54)
Aaa / AA+
AAA
2.84 2.77
91282CBW0 US Treasury Note
0.750% Due 04/30/2026
2,500,000.00 05/27/2021
0.80%
2,493,652.34
2,496,028.30
91.16 3.82%
2,279,102.50
7,872.93
1.53%
(216,925.80)
Aaa / AA+
AAA
3.08 2.98
91282CCZ2 US Treasury Note
0.875% Due 09/30/2026
1,400,000.00 10/18/2021
1.19%
1,379,054.68
1,385,186.43
90.56 3.78%
1,267,875.00
33.47 0.85%
(117,311.43)
Aaa / AA+
AAA
3.50 3.39
91282CDG3 US Treasury Note
1.125% Due 10/31/2026
1,400,000.00 11/15/2021
1.25%
1,391,468.75
1,393,826.75
91.21 3.77%
1,276,898.00
6,613.26
0.86%
(116,928.75)
Aaa / AA+
AAA
3.59 3.44
As of March 31, 2023
36 936
CC 05-16-2023
936 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CEW7 US Treasury Note
3.250% Due 06/30/2027
3,250,000.00 Various
3.18%
3,260,312.50
3,258,536.10
98.27 3.69%
3,193,885.50
26,552.13
2.15%
(64,650.60)
Aaa / AA+
AAA
4.25 3.90
91282CFB2 US Treasury Note
2.750% Due 07/31/2027
400,000.00 08/22/2022
3.12%
393,218.75
394,049.95
96.30 3.68%
385,218.80
1,823.20
0.26%
(8,831.15)
Aaa / AA+
AAA
4.34 4.02
91282CFH9 US Treasury Note
3.125% Due 08/31/2027
4,500,000.00 Various
3.28%
4,468,902.34
4,472,383.65
97.81 3.67%
4,401,562.50
12,228.26
2.95%
(70,821.15)
Aaa / AA+
AAA
4.42 4.07
91282CFM8 US Treasury Note
4.125% Due 09/30/2027
3,450,000.00 Various
4.31%
3,421,152.34
3,423,620.62
101.88
3.67%
3,514,956.60
388.83
2.35%
91,335.98
Aaa / AA+
AAA
4.50 4.08
91282CFZ9 US Treasury Note
3.875% Due 11/30/2027
850,000.00 12/05/2022
3.81%
852,656.25
852,486.95
101.04
3.63%
858,832.35
11,039.49
0.58%
6,345.40
Aaa / AA+
AAA
4.67 4.19
91282CGC9 US Treasury Note
3.875% Due 12/31/2027
2,750,000.00 Various
3.67%
2,775,107.42
2,774,227.76
101.05
3.63%
2,778,897.00
26,787.81
1.87%
4,669.24
Aaa / AA+
AAA
4.76 4.27
91282CGH8 US Treasury Note
3.500% Due 01/31/2028
3,000,000.00 02/07/2023
3.81%
2,957,929.69
2,959,133.02
99.48 3.62%
2,984,298.00
17,403.31
2.01%
25,164.98
Aaa / AA+
AAA
4.84 4.39
91282CGP0 US Treasury Note
4.000% Due 02/29/2028
3,700,000.00 Various
4.00%
3,699,113.28
3,699,259.15
101.71
3.62%
3,763,303.30
12,869.57
2.52%
64,044.15
Aaa / AA+
AAA
4.92 4.42
TOTAL US Treasury 52,900,000.00 2.29%
52,523,617.20
52,610,522.75 3.87%
50,799,763.95
177,702.54
34.06%
(1,810,758.80)
Aaa / AA+
AAA
3.28 3.06
TOTAL PORTFOLIO 156,579,546.75 1.88%
156,510,610.07
156,313,174.13 4.41%
149,130,639.14
539,466.74
100.00%
(7,182,534.99)
Aa1 / AA
AAA
2.69 2.31
TOTAL MARKET VALUE PLUS ACCRUALS 149,670,105.88
As of March 31, 2023
37 937
CC 05-16-2023
937 of 1145
SECTION | Section 4 | Transactions
38 938
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938 of 1145
Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount InterestPur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 01/06/2023 91282CGC9 750,000.00 US Treasury Note
3.875% Due: 12/31/2027
99.660 3.95% 747,451.17 481.70 747,932.87 0.00
Purchase 01/26/2023 91282CGC9 2,000,000.00 US Treasury Note
3.875% Due: 12/31/2027
101.383 3.57% 2,027,656.25 5,566.30 2,033,222.55 0.00
Purchase 02/08/2023 91282CGH8 3,000,000.00 US Treasury Note
3.5% Due: 01/31/2028
98.598 3.81% 2,957,929.69 2,320.44 2,960,250.13 0.00
Purchase 02/28/2023 91282CGP0 2,100,000.00 US Treasury Note 4% Due: 02/29/2028
99.285 4.16% 2,084,988.28 0.00 2,084,988.28 0.00
Purchase 03/09/2023 57636QAW4 945,000.00 MasterCard Inc Callable Note Cont 2/9/28
4.875% Due: 03/09/2028
99.903 4.90% 944,083.35 0.00 944,083.35 0.00
Purchase 03/17/2023 91282CGP0 1,600,000.00 US Treasury Note 4% Due: 02/29/2028
100.883 3.80% 1,614,125.00 2,956.52 1,617,081.52 0.00
Subtotal 10,395,000.00 10,376,233.74 11,324.96 10,387,558.70 0.00 TOTAL ACQUISITIONS 10,395,000.00 10,376,233.74 11,324.96 10,387,558.70 0.00
DISPOSITIONS
Sale 01/26/2023 912828V23 1,500,000.00 US Treasury Note
2.25% Due: 12/31/2023
97.762 1.80% 1,466,425.78 2,424.03 1,468,849.81 -39,625.84 Sale 02/08/2023 3137EAFA2 900,000.00 FHLMC Note
0.25% Due: 12/04/2023
96.198 0.28% 865,782.00 400.00 866,182.00 -33,974.70
Sale 02/08/2023 912828B66 2,000,000.00 US Treasury Note
2.75% Due: 02/15/2024
97.910 1.96% 1,958,203.13 26,453.80 1,984,656.93 -53,653.49 Sale 02/24/2023 3130A0XE5 1,500,000.00 FHLB Note
3.25% Due: 03/08/2024
98.041 2.27% 1,470,615.00 22,479.17 1,493,094.17 -43,641.63 Sale 03/09/2023 24422EVN6 830,000.00 John Deere Capital Corp Note
0.45% Due: 01/17/2024
95.959 0.47% 796,459.70 539.50 796,999.20 -33,363.90
December 31, 2022 through March 31, 2023
As of March 31, 2023
39 939
CC 05-16-2023
939 of 1145
Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount InterestPur/Sold Total Amount Gain/Loss Sale 03/15/2023 91282CBR1 1,450,000.00 US Treasury Note
0.25% Due: 03/15/2024
95.648 0.33% 1,386,902.34 0.00 1,386,902.34 -61,907.58
Sale 03/16/2023 24422EVN6 200,000.00 John Deere Capital Corp Note
0.45% Due: 01/17/2024
96.120 0.47% 192,240.00 147.50 192,387.50 -7,718.44
Subtotal 8,380,000.00 8,136,627.95 52,444.00 8,189,071.95 -273,885.58 TOTAL DISPOSITIONS 8,380,000.00 8,136,627.95 52,444.00 8,189,071.95 -273,885.58 December 31, 2022 through March 31, 2023
As of March 31, 2023
40 940
CC 05-16-2023
940 of 1145
Important Disclosures
2023 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.
Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account.
As of March 31, 2023
41 941
CC 05-16-2023
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Benchmark Disclosures
ICE BofA 1-5 Yr US Treasury & Agency Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.
As of March 31, 2023
42 942
CC 05-16-2023
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CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending April 30, 2023
City of Cupertino
943
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943 of 1145
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Portfolio Holdings
SECTION 4 Transactions
Table of Contents As of April 30, 2023
1 944
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SECTION | Section 1 | Economic Update
2 945
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Economic Update
Economic trends have been decelerating along with tighter financial conditions and restrictive monetary policy. Recent data suggests positive but below trend growth this year. Although the pace of job growth is moderating, labor markets remain solid, and the U.S. consumer has demonstrated resiliency. Market participants and the Federal Reserve are maintaining very divergent views regarding the future trajectory of monetary policy. Given the cumulative effects of tighter monetary policy and stress in the banking sector, we believe the Federal Reserve is likely near a pause in their rate hiking campaign. If moderate growth continues, we believe the Fed will likely maintain the Federal Funds rate in restrictive territory until inflationary pressures subside.
At the March meeting, the Federal Open Market Committee voted unanimously to raise the target federal funds rate by
0.25% to a range of 4.75 – 5.00%. Fed Chair Powell reiterated the committee’s focus on bringing down inflation to their 2% target; however, the committee softened language about "ongoing increases" in rates in the prior statement to "some additional policy firming may be appropriate". The statement also emphasized that the U.S. banking system is “sound and resilient” and acknowledged the tightening of financial conditions. The Chandler team believes the FOMC is likely near a pause in their rate hiking cycle.
In April, the yield curve inversion widened. The 2-year Treasury yield fell 2 basis points to 4.01%, the 5-year Treasury yield dropped 9 basis points to 3.49%, and the 10-year Treasury yield fell 5 basis points to 3.43%. The inversion between the 2- year Treasury yield and 10-year Treasury yield declined to -58 basis points at April month end versus -56 basis points at March month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was +22 basis points.
The inversion between 3-month and 10-year Treasuries widened to -163 basis points in April from -128 in March. The shape of the yield curve indicates that the probability of recession is increasing. 3 946
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Source: US Department of Labor Source: US Department of Labor Employment
The U.S. economy added 236,000 jobs in March, and the prior two months were revised downward by 17,000. Although the pace of job growth is moderating, employment remains strong, with the three-month moving average payrolls at 345,000 and the six-month moving average at 315,000. The private sector reported broad gains, led by leisure and hospitality. The unemployment rate fell to 3.5% due to a sharp rise in the number of people employed, and the participation rate increased to 62.6% from 62.5% in February. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 6.7% from the prior month at 6.8%. Average hourly earnings rose 4.2% year-over-year in March, down from a 4.6% increase in February. Job Openings dipped to 9.9 million, the first drop below 10 million since May of 2021. While the overall pace of hiring is slowing, levels remain consistent with a solid labor market.
0 100
200
300
400
500
600
700
800
900
1,000
MOM Change In (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
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Source: US Department of Labor Source: US Department of Commerce Inflation
The Consumer Price Index (CPI) increased in March 0.1% month-over-month and 5.0% year-over-year, down from 6.0% in February. The Core CPI, which excludes volatile food and energy components, rose 0.4% month-over-month and 5.6% year-over-year, accelerating from 5.5% in February. Housing remained the largest factor in headline CPI representing 60% of the increase. The Personal Consumption Expenditures (PCE) index rose 4.2% year-over-year in March, improving from a 5.1% year-over-year gain in February. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 4.6% year-over-year in March, down slightly from a 4.7% increase in February. Inflationary trends are declining, but the return to the Fed's 2% target remains uneven with high service-sector inflation and strong wage growth as headwinds.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YOY( %) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY( %) Change
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Federal Reserve
Source: Federal Reserve Source: Bloomberg
At the March meeting, the Federal Open Market Committee voted unanimously to raise the target federal funds rate by 0.25% to a range of
4.75 – 5.00%. Fed Chair Powell reiterated the committee’s focus on bringing down inflation to their 2% target; however, the committee softened language about "ongoing increases" in rates in the prior statement to "some additional policy firming may be appropriate". The statement also emphasized that the U.S. banking system is “sound and resilient” and acknowledged the tightening in financial conditions.
Powell indicated that the extent of these effects is uncertain but speculated that tighter credit conditions could be equivalent to a rate hike or more. The Summary of Economic Projections was little changed, with the consensus target federal funds rate rising to 5.1% by the end of 2023 (implying one more quarter point hike), falling to 4.3% in 2024 (up from 4.1% previously), and declining to 3.1% by the end of 2025. No rate cuts were in the Fed’s base case for this year, contrary to the market consensus. Although projections imply policymakers are winding down interest rate hikes, the statement clearly reflected optionality for the Fed to remain data dependent. The Chandler team believes the Fed is likely near a pause in their rate hiking cycle.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
Effective Federal Funds Rate
Yield (%)
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
In $ millions
6 949
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Source: Bloomberg Source: Bloomberg
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Apr-23
Jan-23
Apr-22
Yield (%)
Bond Yields
At the end of April, the 2-year Treasury yield was 129 basis points higher, and the 10-Year Treasury yield was about 49 basis points higher, yearover-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -58 basis points at April month-end versus - 56 basis points at March month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3-month and 10-year Treasuries widened to -163 basis points in April from -128 in March. The shape of the yield curve indicates that the probability of recession is increasing.
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Section 2| SECTION | Section 2 | Account Profile
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Objectives
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.
Investment Objectives
The City of Cupertino’s investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities consistent with the investment policy and California Government Code.
As of April 30, 2023
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Compliance As of April 30, 2023
Category Standard Comment
Treasury Issues No Limitation Complies
Agency Issues 25% per Agency/GSE issuer; 20% max agency callable securities; Issued by Federal Agencies or U.S. Government Sponsored Enterprise obligations. Complies
Supranational "AA" rating category or better by a NRSRO; 30% maximum; 10% max per issuer; USD denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB. Complies Municipal Securities
"A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Obligations of the City, State of California, and any local agency within the State of California; Obligations of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states in addition to California.
Complies
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S. Complies Asset Backed/ Mortgage Backed/
Collateralized Mortgage Obligation
"AA" rating category or better by a NRSRO; 20% maximum; 5% max per issuer on Asset-Backed or Commercial Mortgage security; There is no issuer limitation on any Mortgage security where the issuer is the U.S. Treasury or a Federal Agency/GSE .
Complies
Negotiable Certificates of Deposit
(NCDs)
No rating required if amount of the NCD is insured up to the FDIC limit; If above FDIC insured limit, requires "A-1" shortterm rated or "A" long-term rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by nationally or state chartered banks, state or federal savings associations, or state or federal credit unions, or by a federally licensed or state-licensed branch of a foreign bank.
Complies
Certificates of Deposit (CDs)/Time
Deposit (TDs)
30% maximum; 5% max per issuer; Certificates of Deposit, Time Deposit, non-negotiable, and collateralized in accordance with California Government Code. Complies
Banker’s Acceptances "A-1" short-term rated or better by a NRSRO; or "A" long-term rating category or better by a NRSRO; 40% maximum; 5% max per issuer; 180 days max maturity Complies
Commercial Paper
"A-1" short term rated or better a NRSRO; "A" long-term issuer rating category or better by a NRSRO; 25% maximum; 5% max per issuer; 270 days max maturity; Issued by corporations organized and operating in the U.S. with assets > $500 million; 10% max outstanding paper of the issuing corporation.
Complies
Money Market Funds
20% maximum; Daily money market funds administered for or by trustees, paying agents and custodian banks contracted by a City of Cupertino as allowed under California Government Code; Only funds holding U.S. Treasury obligations, Government agency obligations or repurchase agreements collateralized by U.S. Treasury or Government agency obligations can be utilized.
Complies
Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 10 953
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Compliance As of April 30, 2023
Category Standard Comment
Repurchase Agreements 1 year max maturity; 102% collateralized; A PSA Master Repurchase Agreement is required between City of Cupertino and the broke/dealer or financial institution for all repurchase agreements; Not used by investment adviser Complies Prohibited Securities
Reverse Repurchase Agreement; Common stocks; Long-term (> 5 years maturity) notes and bonds; Special circumstances arise that necessitate purchase of securities beyond the 5-year limitation. On such occasions, request must be approved by City Council prior to purchase; Futures/Options; Inverse floaters; Ranges notes, Mortgage-derived, Interest-only strips; Zero interest accrual securities; Purchasing/selling securities on margin; Foreign currency denominated securities.
Complies
Minimum Budgeted Operating
Expenditures in Short Term Investments
Minimum 6 months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements Complies
Max Per Issuer 5% per issuer, unless otherwise specified in the policy Complies Maximum maturity 5 years Complies
City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 11 954
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Portfolio Summary – City of Cupertino #10659 As of April 30, 2023 12 955
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Purchase Yield as of 04/30/23 = 1.90%
0.00 0.50
1.00 1.50
2.00 2.50
Percent (%)
Historical Average Purchase Yield
City of Cupertino
As of April 30, 2023
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SECTION | Section 3 | Portfolio Holdings
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Issue Name Investment Type % Portfolio
Government of United States US Treasury 34.06%
Federal National Mortgage Association Agency 8.82%
Federal Home Loan Mortgage Corp Agency 4.35%
Federal Home Loan Mortgage Corp CMO 3.82%
Inter-American Dev Bank Supranational 3.32%
Federal Home Loan Bank Agency 2.30%
American Express ABS ABS 1.88%
John Deere ABS ABS 1.84%
Hyundai Auto Receivables ABS 1.73%
Royal Bank of Canada Corporate 1.66%
Toyota Motor Corp Corporate 1.61%
Bank of New York Corporate 1.54%
Bank of America Corp Corporate 1.54%
JP Morgan Chase & Co Corporate 1.54%
International Finance Corp Supranational 1.53%
Intl Bank Recon and Development Supranational 1.47%
Toronto Dominion Holdings Corporate 1.42%
Northwestern Mutual Glbl Corporate 1.29%
Paccar Financial Corporate 1.24%
Bank of Montreal Chicago Corporate 1.16%
Amazon.com Inc Corporate 1.14%
Metlife Inc Corporate 1.13%
GM Financial Automobile Leasing Trust ABS 1.13%
Salesforce.com Inc Corporate 1.12%
Air Products & Chemicals Corporate 1.11%
Prudential Financial Inc Corporate 1.10%
United Health Group Inc Corporate 1.08%
New York Life Global Funding Corporate 1.06%
Berkshire Hathaway Corporate 1.03%
Wells Fargo 100% Treasury MMKT Fund Money Market Fund 1.02% Honda ABS ABS 1.00%
Toyota Lease Owner Trust ABS 0.90%
Guardian Life Global Funding Corporate 0.84%
US Bancorp Corporate 0.81%
Caterpillar Inc Corporate 0.71%
Toyota ABS ABS 0.71%
GM Financial Securitized Term Auto Trust ABS 0.66%
MasterCard Inc Corporate 0.66%
Issuers
City of Cupertino – Account #10659
As of April 30, 2023
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Issue Name Investment Type % Portfolio
Hyundai Auto Lease Securitization ABS 0.63%
Mass Mutual Insurance Corporate 0.60%
Charles Schwab Corp/The Corporate 0.58%
State of California Municipal Bonds 0.49%
BMW Vehicle Lease Trust ABS 0.47%
Northern Trust Corp Corporate 0.45%
Morgan Stanley Corporate 0.41%
Verizon Master Trust ABS 0.37%
BMW ABS ABS 0.34%
Wal-Mart Stores Corporate 0.21%
Verizon Owner Trust ABS 0.14%
TOTAL 100.00%
Issuers
City of Cupertino – Account #10659
As of April 30, 2023
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Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
89238EAC0 Toyota Lease Owner Trust 2021-A A3
0.390% Due 04/22/2024
243,630.00 03/23/2022
2.16%
238,757.12
242,357.83
99.10 6.24%
241,447.28
29.03 0.16%
(910.55)
Aaa / AAA
NR
0.98 0.15
44891VAC5 Hyundai Auto Lease Trust 2021-B A3
0.330% Due 06/17/2024
429,061.00 06/08/2021
0.34%
428,996.61
429,050.23
98.98 5.94%
424,700.85
62.93 0.28%
(4,349.38)
Aaa / AAA
NR
1.13 0.18
43813DAC2 Honda Auto Receivables 2020-2 A3
0.820% Due 07/15/2024
27,838.00 05/18/2020
0.83%
27,835.90
27,837.45
99.14 5.42%
27,598.96
10.15 0.02%
(238.49)
Aaa / AAA
NR
1.21 0.19
47789KAC7 John Deere Owner Trust 2020-A A3
1.100% Due 08/15/2024
21,190.00 03/04/2020
1.11%
21,188.34
21,189.25
99.74 4.34%
21,134.81
10.36 0.01%
(54.44)
Aaa / NR
AAA
1.30 0.08
43813KAC6 Honda Auto Receivables Trust 2020-3 A3
0.370% Due 10/18/2024
179,232.00 09/22/2020
0.38%
179,205.58
179,227.29
98.20 5.95%
175,997.13
23.95 0.12%
(3,230.16)
NR / AAA
AAA
1.47 0.32
36262XAC8 GM Financial Auto Lease Trust 2021-3 A2
0.390% Due 10/21/2024
785,230.00 08/10/2021
0.39%
785,219.56
785,227.05
98.06 5.77%
770,030.53
93.57 0.51%
(15,196.52)
NR / AAA
AAA
1.48 0.36
47787NAC3 John Deere Owner Trust 2020-B A3
0.510% Due 11/15/2024
47,094.00 07/14/2020
0.52%
47,086.99
47,092.71
99.13 4.64%
46,682.33
10.67 0.03%
(410.38)
Aaa / NR
AAA
1.55 0.21
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3
0.330% Due 12/26/2024
264,651.00 09/08/2021
0.34%
264,623.30
264,642.80
98.22 5.84%
259,937.46
14.56 0.17%
(4,705.34)
Aaa / NR
AAA
1.66 0.32
89236XAC0 Toyota Auto Receivables 2020-D A3
0.350% Due 01/15/2025
130,075.00 10/06/2020
0.36%
130,050.70
130,065.19
98.59 5.61%
128,244.51
20.23 0.09%
(1,820.68)
NR / AAA
AAA
1.72 0.27
44891WAC3 Hyundai Auto Lease Trust 2022-A A3
1.160% Due 01/15/2025
540,000.00 01/11/2022
1.16%
539,988.07
539,994.89
97.55 5.71%
526,764.06
278.40
0.35%
(13,230.83)
Aaa / AAA
NR
1.72 0.54
92290BAA9 Verizon Owner Trust 2020-B A
0.470% Due 02/20/2025
205,016.00 08/04/2020
0.48%
204,972.59
204,998.43
98.97 5.49%
202,902.76
29.44 0.14%
(2,095.67)
Aaa / NR
AAA
1.81 0.20
89238LAC4 Toyota Lease Owner Trust 2022-A A3
1.960% Due 02/20/2025
1,150,000.00 02/23/2022
1.98%
1,149,818.99
1,149,910.68
97.13 5.82%
1,116,998.45
688.72
0.74%
(32,912.23)
NR / AAA
AAA
1.81 0.75
36265MAC9 GM Financial Auto Lease Trust 2022-1 A3
1.900% Due 03/20/2025
945,000.00 02/15/2022
1.91%
944,991.87
944,996.33
97.49 5.63%
921,253.10
548.63
0.61%
(23,743.23)
Aaa / NR
AAA
1.89 0.68
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
449,960.00 01/11/2022
1.11%
449,892.92
449,932.38
97.83 5.77%
440,187.04
82.49 0.29%
(9,745.34)
NR / AAA
AAA
1.90 0.46
43813GAC5 Honda Auto Receivables Trust 2021-1 A3
0.270% Due 04/21/2025
146,811.00 02/17/2021
0.27%
146,808.54
146,810.44
97.35 6.03%
142,926.30
11.01 0.10%
(3,884.14)
Aaa / NR
AAA
1.98 0.46
89240BAC2 Toyota Auto Receivables Owners 2021-A A3
0.260% Due 05/15/2025
536,618.00 02/02/2021
0.27%
536,518.23
536,589.73
97.56 5.54%
523,517.37
62.01 0.35%
(13,072.36)
Aaa / NR
AAA
2.04 0.46
44933LAC7 Hyundai Auto Receivables Trust 2021-A A3
0.380% Due 09/15/2025
361,267.00 04/20/2021
0.38%
361,228.95
361,253.98
97.26 5.45%
351,374.03
61.01 0.23%
(9,879.95)
NR / AAA
AAA
2.38 0.54
As of April 30, 2023
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Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
43815GAC3 Honda Auto Receivables Trust 2021-4 A3
0.880% Due 01/21/2026
460,000.00 11/16/2021
0.89%
459,903.03
459,945.83
95.51 5.58%
439,351.98
112.44
0.29%
(20,593.85)
Aaa / NR
AAA
2.73 0.96
47789QAC4 John Deere Owner Trust 2021-B A3
0.520% Due 03/16/2026
580,000.00 07/13/2021
0.52%
579,948.26
579,973.45
95.90 5.62%
556,206.08
134.04
0.37%
(23,767.37)
Aaa / NR
AAA
2.88 0.80
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
430,000.00 11/09/2021
0.71%
429,990.84
429,994.94
95.37 5.69%
410,085.84
135.69
0.27%
(19,909.10)
NR / AAA
AAA
2.96 0.93
43815BAC4 Honda Auto Receivables Trust 2022-1 A3
1.880% Due 05/15/2026
740,000.00 02/15/2022
1.89%
739,888.70
739,929.55
95.97 5.05%
710,171.35
618.31
0.47%
(29,758.20)
Aaa / AAA
NR
3.04 1.29
44935FAD6 Hyundai Auto Receivables Trust 2021-C A3
0.740% Due 05/15/2026
1,330,000.00 Various
2.03%
1,296,371.65
1,309,599.28
95.62 5.57%
1,271,714.08
437.42
0.85%
(37,885.20)
NR / AAA
AAA
3.04 0.91
05602RAD3 BMW Vehicle Owner Trust 2022-A A3
3.210% Due 08/25/2026
530,000.00 05/10/2022
3.23%
529,972.44
529,980.90
97.45 5.21%
516,490.30
283.55
0.34%
(13,490.60)
Aaa / AAA
NR
3.32 1.30
362554AC1 GM Financial Securitized Term 2021-4 A3
0.680% Due 09/16/2026
350,000.00 10/13/2021
0.68%
349,991.08
349,995.08
95.14 5.77%
332,977.75
99.17 0.22%
(17,017.33)
Aaa / AAA
NR
3.38 0.96
47787JAC2 John Deere Owner Trust 2022-A A3
2.320% Due 09/16/2026
450,000.00 03/10/2022
2.34%
449,900.46
449,932.45
96.33 5.41%
433,505.25
464.00
0.29%
(16,427.20)
Aaa / NR
AAA
3.38 1.20
448977AD0 Hyundai Auto Receivables Trust 2022-A A3
2.220% Due 10/15/2026
1,010,000.00 03/09/2022
2.23%
1,009,961.12
1,009,974.58
96.20 5.25%
971,656.36
996.53
0.65%
(38,318.22)
NR / AAA
AAA
3.46 1.27
380146AC4 GM Financial Auto Receivables 2022-1 A3
1.260% Due 11/16/2026
295,000.00 01/11/2022
1.27%
294,974.36
294,984.23
95.34 5.55%
281,254.48
154.88
0.19%
(13,729.75)
NR / AAA
AAA
3.55 1.10
362585AC5 GM Financial Securitized ART 2022-2 A3
3.100% Due 02/16/2027
390,000.00 04/05/2022
3.13%
389,918.49
389,943.42
97.22 5.01%
379,153.71
503.75
0.25%
(10,789.71)
Aaa / AAA
NR
3.80 1.48
47800AAC4 John Deere Owner Trust 2022-B A3
3.740% Due 02/16/2027
655,000.00 07/12/2022
3.77%
654,937.45
654,951.10
98.03 4.96%
642,070.30
1,088.76
0.43%
(12,880.80)
Aaa / NR
AAA
3.80 1.66
02589BAA8 American Express Credit Accoun 22-1 A
2.210% Due 03/15/2027
1,545,000.00 03/21/2022
2.69%
1,524,359.77
1,532,023.97
95.54 4.75%
1,476,123.90
1,517.53
0.98%
(55,900.07)
Aaa / NR
AAA
3.88 1.79
02582JJT8 American Express Credit Trust 2022-2 A
3.390% Due 05/17/2027
1,375,000.00 05/17/2022
3.42%
1,374,695.85
1,374,791.54
97.81 4.56%
1,344,913.63
2,071.67
0.90%
(29,877.91)
NR / AAA
AAA
4.05 1.92
47800BAC2 John Deere Owner Trust 2022-C A3
5.090% Due 06/15/2027
1,050,000.00 10/12/2022
5.15%
1,049,918.52
1,049,930.36
100.87
4.67%
1,059,099.30
2,375.33
0.71%
9,168.94
Aaa / NR
AAA
4.13 1.83
92348KAV5 Verizon Master Trust 2022-5 A1A
3.720% Due 07/20/2027
570,000.00 08/02/2022
3.75%
569,974.92
569,981.43
98.63 5.18%
562,196.13
647.90
0.37%
(7,785.30)
NR / AAA
AAA
4.22 1.25
TOTAL ABS 18,222,673.00 2.07%
18,161,891.20
18,187,108.77 5.34%
17,708,667.41
13,678.13
11.79%
(478,441.36)
Aaa / AAA
AAA
2.91 1.07
As of April 30, 2023
18 961
CC 05-16-2023
961 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Agency
3137EAFA2 FHLMC Note
0.250% Due 12/04/2023
855,000.00 12/02/2020
0.28%
854,153.55
854,832.26
97.24 5.03%
831,363.53
872.81
0.55%
(23,468.73)
Aaa / AA+
AAA
0.60 0.58
3130A1XJ2 FHLB Note
2.875% Due 06/14/2024
1,500,000.00 06/18/2019
1.96%
1,564,890.20
1,514,602.08
98.04 4.69%
1,470,538.51
16,411.46
0.99%
(44,063.57)
Aaa / AA+
NR
1.13 1.08
3135G0V75 FNMA Note
1.750% Due 07/02/2024
1,500,000.00 07/16/2019
1.96%
1,484,895.00
1,496,432.15
96.80 4.58%
1,451,968.50
8,677.08
0.97%
(44,463.65)
Aaa / AA+
AAA
1.18 1.13
3130A2UW4 FHLB Note
2.875% Due 09/13/2024
2,000,000.00 09/13/2019
1.79%
2,103,380.00
2,028,395.49
97.74 4.59%
1,954,836.00
7,666.67
1.31%
(73,559.49)
Aaa / AA+
AAA
1.38 1.32
3135G0W66 FNMA Note
1.625% Due 10/15/2024
1,975,000.00 Various
1.73%
1,965,802.75
1,972,239.56
95.87 4.59%
1,893,416.70
1,426.39
1.26%
(78,822.86)
Aaa / AA+
AAA
1.46 1.41
3135G0X24 FNMA Note
1.625% Due 01/07/2025
1,295,000.00 Various
1.38%
1,309,953.95
1,300,245.83
95.59 4.37%
1,237,847.77
6,663.86
0.83%
(62,398.06)
Aaa / AA+
AAA
1.69 1.63
3137EAEP0 FHLMC Note
1.500% Due 02/12/2025
2,365,000.00 02/13/2020
1.52%
2,363,178.95
2,364,348.41
95.36 4.23%
2,255,195.42
7,784.79
1.51%
(109,152.99)
Aaa / AA+
AAA
1.79 1.72
3135G03U5 FNMA Note
0.625% Due 04/22/2025
1,860,000.00 04/22/2020
0.67%
1,856,168.40
1,858,483.33
93.30 4.19%
1,735,292.58
290.63
1.15%
(123,190.75)
Aaa / AA+
AAA
1.98 1.93
3135G04Z3 FNMA Note
0.500% Due 06/17/2025
2,500,000.00 Various
0.50%
2,499,227.30
2,499,760.46
92.75 4.09%
2,318,820.00
4,652.78
1.55%
(180,940.46)
Aaa / AA+
AAA
2.13 2.08
3137EAEU9 FHLMC Note
0.375% Due 07/21/2025
1,250,000.00 07/21/2020
0.48%
1,243,775.00
1,247,228.78
92.21 4.07%
1,152,607.50
1,302.08
0.77%
(94,621.28)
Aaa / AA+
AAA
2.23 2.17
3135G05X7 FNMA Note
0.375% Due 08/25/2025
2,500,000.00 Various
0.48%
2,487,983.75
2,494,259.26
91.95 4.05%
2,298,712.51
1,718.75
1.53%
(195,546.75)
Aaa / AA+
AAA
2.32 2.26
3137EAEX3 FHLMC Note
0.375% Due 09/23/2025
2,500,000.00 Various
0.46%
2,489,362.80
2,494,784.45
91.69 4.05%
2,292,277.50
989.58
1.53%
(202,506.95)
Aaa / AA+
AAA
2.40 2.34
3135G06G3 FNMA Note
0.500% Due 11/07/2025
2,500,000.00 Various
0.56%
2,492,700.00
2,496,306.84
91.86 3.93%
2,296,375.00
6,041.67
1.53%
(199,931.84)
Aaa / AA+
AAA
2.53 2.45
TOTAL Agency 24,600,000.00 1.03%
24,715,471.65
24,621,918.90 4.29%
23,189,251.52
64,498.55
15.47%
(1,432,667.38)
Aaa / AA+
AAA
1.86 1.80
CMO
3137BFE98 FHLMC K041 A2
3.171% Due 10/25/2024
1,300,000.00 07/01/2021
0.72%
1,398,414.06
1,343,212.26
97.47 4.96%
1,267,050.20
3,435.25
0.85%
(76,162.06)
Aaa / AAA
AAA
1.49 1.32
3137BLMZ8 FHLMC K049 A2
3.010% Due 07/25/2025
1,000,000.00 07/01/2021
0.87%
1,079,687.50
1,043,376.29
96.96 4.46%
969,631.33
2,508.33
0.65%
(73,744.96)
NR / NR
AAA
2.24 2.00
As of April 30, 2023
19 962
CC 05-16-2023
962 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
3137BLW95 FHLMC K050 A2
3.334% Due 08/25/2025
950,000.00 11/16/2021
1.17%
1,018,132.81
991,505.04
97.55 4.45%
926,770.60
2,639.42
0.62%
(64,734.44)
NR / NR
AAA
2.32 2.05
3137BM7C4 FHLMC K051 A2
3.308% Due 09/25/2025
440,000.00 03/15/2022
2.21%
453,079.69
448,844.07
97.47 4.43%
428,865.36
1,212.93
0.29%
(19,978.71)
NR / NR
AAA
2.41 2.13
3137BN6G4 FHLMC KO53
2.995% Due 12/25/2025
570,000.00 03/15/2022
2.29%
582,001.17
578,439.14
96.66 4.37%
550,946.63
1,422.63
0.37%
(27,492.51)
NR / NR
AAA
2.66 2.35
3137BSP72 FHLMC K058 A2
2.653% Due 08/25/2026
650,000.00 11/12/2021
1.35%
687,451.17
675,897.55
95.18 4.21%
618,690.80
1,437.04
0.41%
(57,206.75)
NR / NR
AAA
3.32 3.07
3137FBBX3 FHLMC K068 A2
3.244% Due 08/25/2027
1,000,000.00 09/28/2022
4.41%
950,664.06
956,540.72
96.45 4.14%
964,457.00
2,703.33
0.64%
7,916.28
Aaa / NR
NR
4.32 3.89
TOTAL CMO 5,910,000.00 1.74%
6,169,430.46
6,037,815.07 4.48%
5,726,411.92
15,358.93
3.82%
(311,403.15)
Aaa / AAA
AAA
2.61 2.34
Corporate
89114QCA4 Toronto Dominion Bank Note
2.650% Due 06/12/2024
1,500,000.00 09/11/2019
2.24%
1,527,255.00
1,506,412.94
97.19 5.27%
1,457,833.50
15,347.92
0.98%
(48,579.44)
A1 / A
AA1.121.07
06367TQW3 Bank of Montreal Note
0.625% Due 07/09/2024
600,000.00 02/09/2022
1.89%
582,216.00
591,199.04
94.79 5.19%
568,734.60
1,166.67
0.38%
(22,464.44)
A2 / AAA1.19
1.16 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022
0.625% Due 07/15/2024
1,760,000.00 Various
0.87%
1,748,937.40
1,754,904.81
95.37 4.61%
1,678,496.16
3,238.88
1.12%
(76,408.65)
A2 / A+
NR
1.21 1.18
78013XZU5 Royal Bank of Canada Note
2.550% Due 07/16/2024
1,500,000.00 Various
1.99%
1,533,359.18
1,509,812.41
97.04 5.09%
1,455,672.00
11,156.26
0.98%
(54,140.41)
A1 / A
AA1.211.16
91159HHX1 US Bancorp Callable Note Cont 6/28/2024
2.400% Due 07/30/2024
1,250,000.00 10/10/2019
2.07%
1,268,262.50
1,254,507.16
96.55 5.28%
1,206,918.75
7,583.33
0.81%
(47,588.41)
A3 / A+
A+
1.25 1.20
009158AV8 Air Products & Chemicals Callable Note Cont 4/30/2024
3.350% Due 07/31/2024
1,675,000.00 08/07/2019
2.07%
1,771,212.00
1,695,346.11
98.39 4.69%
1,648,035.85
14,183.99
1.11%
(47,310.26)
A2 / A
NR
1.25 1.20
69371RR40 Paccar Financial Corp Note
0.500% Due 08/09/2024
680,000.00 08/03/2021
0.52%
679,632.80
679,843.87
94.68 4.85%
643,828.08
774.44
0.43%
(36,015.79)
A1 / A+
NR
1.28 1.24
69371RQ25 Paccar Financial Corp Note
2.150% Due 08/15/2024
370,000.00 08/08/2019
2.20%
369,182.30
369,788.75
96.75 4.78%
357,957.61
1,679.39
0.24%
(11,831.14)
A1 / A+
NR
1.30 1.25
14913Q3B3 Caterpillar Finl Service Note
2.150% Due 11/08/2024
1,100,000.00 01/28/2020
1.92%
1,111,517.00
1,103,678.31
96.49 4.56%
1,061,407.60
11,365.14
0.71%
(42,270.71)
A2 / A
A
1.53 1.46
74153WCQ0 Pricoa Global Funding Note
1.150% Due 12/06/2024
885,000.00 12/01/2021
1.19%
884,088.45
884,512.56
93.94 5.15%
831,324.75
4,099.27
0.56%
(53,187.81)
Aa3 / AAAA1.61
1.54 As of April 30, 2023
20 963
CC 05-16-2023
963 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
89114TZL9 Toronto-Dominion Bank Note
1.450% Due 01/10/2025
700,000.00 03/15/2022
2.79%
674,737.00
684,793.15
94.40 4.93%
660,796.50
3,129.58
0.44%
(23,996.65)
A1 / A
NR
1.70 1.63
89236TJT3 Toyota Motor Credit Corp Note
1.450% Due 01/13/2025
1,215,000.00 01/10/2022
1.50%
1,213,371.90
1,214,074.54
94.91 4.59%
1,153,207.53
5,285.25
0.77%
(60,867.01)
A1 / A+
A+
1.71 1.64
64952WEK5 New York Life Global Note
1.450% Due 01/14/2025
1,680,000.00 01/11/2022
1.49%
1,678,185.60
1,678,966.98
94.47 4.86%
1,587,176.64
7,240.33
1.06%
(91,790.34)
Aaa / AA+
AAA
1.71 1.64
69371RR73 Paccar Financial Corp Note
2.850% Due 04/07/2025
885,000.00 03/31/2022
2.86%
884,769.90
884,851.57
96.74 4.63%
856,182.63
1,681.50
0.57%
(28,668.94)
A1 / A+
NR
1.94 1.85
78016EZ59 Royal Bank of Canada Note
3.375% Due 04/14/2025
1,050,000.00 04/07/2022
3.39%
1,049,611.50
1,049,746.91
97.22 4.88%
1,020,828.90
1,673.44
0.68%
(28,918.01)
A1 / A
AA1.961.86
06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/2025
3.350% Due 04/25/2025
1,370,000.00 04/19/2022
3.35%
1,369,808.20
1,369,873.01
96.97 4.97%
1,328,516.40
764.92
0.88%
(41,356.61)
A1 / A
AA1.991.89
06367WB85 Bank of Montreal Note
1.850% Due 05/01/2025
1,240,000.00 07/23/2021
0.85%
1,285,656.80
1,264,290.48
94.17 4.94%
1,167,670.80
11,470.00
0.78%
(96,619.68)
A2 / AAA2.01
1.91 46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024
0.824% Due 06/01/2025
1,370,000.00 05/24/2021
0.78%
1,371,773.90
1,370,642.55
95.01 5.54%
1,301,620.56
4,703.67
0.87%
(69,021.99)
A1 / AAA2.09
1.99 46647PCK0 JP Morgan Chase & Co Callable Note Cont 6/23/2024
0.969% Due 06/23/2025
655,000.00 Various
0.95%
655,406.85
655,155.68
94.82 5.60%
621,076.90
2,256.70
0.41%
(34,078.78)
A1 / AAA2.15
2.05 66815L2J7 Northwestern Mutual Glbl Note
4.000% Due 07/01/2025
1,170,000.00 06/27/2022
4.01%
1,169,602.20
1,169,712.54
98.29 4.84%
1,150,016.40
15,600.00
0.78%
(19,696.14)
Aaa / AA+
AAA
2.17 2.02
74153WCM9 Pricoa Global Funding Note
0.800% Due 09/01/2025
904,000.00 04/06/2022
3.26%
832,972.72
855,161.60
91.07 4.89%
823,310.77
1,205.33
0.55%
(31,850.83)
Aa3 / AAAA2.34
2.26 06406HCQ0 Bank of New York Callable Note Cont 10/18/2025
3.950% Due 11/18/2025
1,000,000.00 04/05/2022
3.20%
1,024,910.00
1,017,398.38
97.08 5.19%
970,763.00
17,884.72
0.66%
(46,635.38)
A1 / A
AA2.562.34
40139LBC6 Guardian Life Glob Fun Note
0.875% Due 12/10/2025
1,400,000.00 Various
1.12%
1,385,860.00
1,391,167.53
90.29 4.88%
1,264,061.40
4,797.92
0.84%
(127,106.13)
Aa1 / AA+
NR
2.62 2.51
66815L2A6 Northwestern Mutual Glbl Note
0.800% Due 01/14/2026
850,000.00 12/06/2021
1.47%
827,449.50
835,111.85
90.44 4.60%
768,698.35
2,021.11
0.51%
(66,413.50)
Aaa / AA+
AAA
2.71 2.61
06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025
2.015% Due 02/13/2026
600,000.00 05/24/2021
1.05%
620,988.00
610,100.19
94.05 5.56%
564,312.00
2,619.50
0.38%
(45,788.19)
A2 / AAA2.79
1.71 As of April 30, 2023
21 964
CC 05-16-2023
964 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
46647PBK1 JP Morgan Chase & Co Callable Note Cont 4/22/2025
2.083% Due 04/22/2026
401,000.00 05/20/2021
1.11%
415,969.33
408,563.23
94.22 5.20%
377,819.39
208.82
0.25%
(30,743.84)
A1 / AAA2.98
1.90 6174468Q5 Morgan Stanley Callable Note Cont 4/28/2025
2.188% Due 04/28/2026
650,000.00 05/23/2022
4.80%
615,699.50
623,856.03
94.14 5.32%
611,917.80
118.52
0.41%
(11,938.23)
A1 / AA+3.00
1.91 023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026
1.000% Due 05/12/2026
1,875,000.00 05/10/2021
1.09%
1,866,900.00
1,870,089.43
91.25 4.10%
1,710,858.75
8,802.08
1.14%
(159,230.68)
A1 / AA
AA3.042.92
91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026
1.150% Due 05/15/2026
1,035,000.00 Various
1.37%
1,025,051.35
1,028,132.33
91.61 4.11%
948,169.71
5,488.37
0.63%
(79,962.62)
A3 / A+
A
3.04 2.92
89236TJK2 Toyota Motor Credit Corp Note
1.125% Due 06/18/2026
1,385,000.00 06/15/2021
1.13%
1,384,390.60
1,384,618.21
90.71 4.33%
1,256,383.36
5,756.41
0.84%
(128,234.85)
A1 / A+
A+
3.14 3.01
06051GJD2 Bank of America Corp Callable Note Cont 6/19/2025
1.319% Due 06/19/2026
700,000.00 07/16/2021
1.27%
701,274.00
700,694.91
91.47 5.61%
640,297.00
3,385.43
0.43%
(60,397.91)
A2 / AAA3.14
2.04 57629WDE7 Mass Mutual Global funding Note
1.200% Due 07/16/2026
1,000,000.00 08/19/2021
1.15%
1,002,230.00
1,001,461.72
89.24 4.86%
892,383.00
3,500.00
0.60%
(109,078.72)
Aa3 / AA+
AA+
3.21 3.07
58989V2D5 Met Tower Global Funding Note
1.250% Due 09/14/2026
770,000.00 09/07/2021
1.27%
769,291.60
769,522.04
89.17 4.76%
686,629.02
1,256.60
0.46%
(82,893.02)
Aa3 / AAAA3.38
3.23 931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026
1.050% Due 09/17/2026
350,000.00 09/08/2021
1.09%
349,338.50
349,552.60
90.58 4.06%
317,039.10
449.17
0.21%
(32,513.50)
Aa2 / AA
AA
3.39 3.26
59217GER6 Metlife Note
1.875% Due 01/11/2027
1,115,000.00 01/03/2022
1.90%
1,113,728.90
1,114,059.55
90.05 4.85%
1,004,075.34
6,388.02
0.67%
(109,984.21)
Aa3 / AAAA3.70
3.48 808513BY0 Charles Schwab Corp Callable Note Cont 2/3/2027
2.450% Due 03/03/2027
960,000.00 03/01/2022
2.46%
959,729.90
959,791.45
90.64 5.17%
870,124.80
3,789.33
0.58%
(89,666.65)
A2 / AA3.84
3.57 084664CZ2 Berkshire Hathaway Callable Note Cont 2/15/2027
2.300% Due 03/15/2027
1,615,000.00 03/07/2022
2.30%
1,614,693.15
1,614,762.38
95.38 3.59%
1,540,359.55
4,746.31
1.03%
(74,402.83)
Aa2 / AA
A+
3.88 3.65
06051GHT9 Bank of America Corp Callable Note 1X 4/23/2026
3.559% Due 04/23/2027
1,150,000.00 Various
4.87%
1,114,222.54
1,119,779.57
95.37 5.26%
1,096,766.50
909.53
0.73%
(23,013.07)
A2 / AAA3.98
2.78 665859AW4 Northern Trust Company Callable Note Cont 4/10/2027
4.000% Due 05/10/2027
670,000.00 05/05/2022
4.04%
668,914.60
669,126.21
98.20 4.49%
657,954.74
12,730.00
0.45%
(11,171.47)
A2 / A+
A+
4.03 3.61
As of April 30, 2023
22 965
CC 05-16-2023
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Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91324PEG3 United Health Group Inc Callable Note Cont 4/15/2027
3.700% Due 05/15/2027
675,000.00 05/17/2022
3.69%
675,316.70
675,256.52
98.13 4.21%
662,395.05
11,516.25
0.45%
(12,861.47)
A3 / A+
A
4.04 3.65
57636QAW4 MasterCard Inc Callable Note Cont 2/9/28
4.875% Due 03/09/2028
945,000.00 03/06/2023
4.90%
944,083.35
944,109.94
103.73
4.01%
980,275.91
6,654.38
0.66%
36,165.97
Aa3 / A+
NR
4.86 4.21
TOTAL Corporate 42,705,000.00 2.08%
42,741,600.72
42,634,429.04 4.80%
40,401,896.70
228,628.48
27.03%
(2,232,532.34)
A1 / A+
AA2.402.19
Money Market Fund
94975H270 Wells Fargo 100% Treasury Money Mkt Fund 1,527,845.00 Various
4.27%
1,527,844.52
1,527,844.52
1.00 4.27%
1,527,844.52
0.00 1.02%
0.00 Aaa / AAA
NR
0.00 0.00
TOTAL Money Market Fund 1,527,845.00 4.27%
1,527,844.52
1,527,844.52 4.27%
1,527,844.52
0.00 1.02%
0.00 Aaa / AAA
NR
0.00 0.00
Municipal Bonds
13063DRK6 California State Taxable GO
2.400% Due 10/01/2024
755,000.00 10/16/2019
1.91%
772,342.35
759,989.29
96.68 4.85%
729,925.70
1,510.00
0.49%
(30,063.59)
Aa2 / AAAA1.42
1.37 TOTAL Municipal Bonds 755,000.00 1.91%
772,342.35
759,989.29 4.85%
729,925.70
1,510.00
0.49%
(30,063.59)
Aa2 / AAAA1.42
1.37 Supranational
4581X0DP0 Inter-American Dev Bank Note
0.250% Due 11/15/2023
2,800,000.00 07/01/2021
0.37%
2,792,300.00
2,798,231.32
97.43 5.13%
2,727,978.40
3,227.78
1.82%
(70,252.92)
Aaa / AAA
NR
0.55 0.53
45950KCT5 International Finance Corp Note
0.375% Due 07/16/2025
2,500,000.00 05/27/2021
0.66%
2,471,150.00
2,484,540.54
91.85 4.28%
2,296,157.50
2,734.38
1.53%
(188,383.04)
Aaa / AAA
NR
2.21 2.16
459058JL8 Intl. Bank Recon & Development Note
0.500% Due 10/28/2025
2,400,000.00 Various
0.60%
2,388,859.25
2,394,088.38
91.96 3.91%
2,207,114.41
100.00
1.47%
(186,973.97)
Aaa / AAA
AAA
2.50 2.43
4581X0DV7 Inter-American Dev Bank Note
0.875% Due 04/20/2026
2,460,000.00 04/13/2021
0.97%
2,448,733.20
2,453,305.32
91.73 3.85%
2,256,565.38
657.71
1.50%
(196,739.94)
Aaa / AAA
AAA
2.98 2.88
TOTAL Supranational 10,160,000.00 0.64%
10,101,042.45
10,130,165.56 4.33%
9,487,815.69
6,719.87
6.32%
(642,349.87)
Aaa / AAA
AAA
1.98 1.92
US Treasury
912828X70 US Treasury Note
2.000% Due 04/30/2024
1,700,000.00 06/10/2019
1.92%
1,705,976.56
1,701,222.10
97.24 4.86%
1,653,051.10
92.39 1.10%
(48,171.00)
Aaa / AA+
AAA
1.00 0.97
As of April 30, 2023
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Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
912828XX3 US Treasury Note
2.000% Due 06/30/2024
2,000,000.00 Various
1.80%
2,018,574.22
2,004,481.92
96.99 4.67%
1,939,844.00
13,370.16
1.30%
(64,637.92)
Aaa / AA+
AAA
1.17 1.13
912828D56 US Treasury Note
2.375% Due 08/15/2024
1,700,000.00 09/18/2019
1.71%
1,753,191.41
1,714,010.24
97.30 4.54%
1,654,047.30
8,364.99
1.11%
(59,962.94)
Aaa / AA+
AAA
1.30 1.25
912828YY0 US Treasury Note
1.750% Due 12/31/2024
2,100,000.00 03/15/2022
1.97%
2,087,203.13
2,092,354.47
96.01 4.25%
2,016,163.80
12,283.84
1.35%
(76,190.67)
Aaa / AA+
AAA
1.67 1.61
912828ZC7 US Treasury Note
1.125% Due 02/28/2025
1,500,000.00 03/18/2020
0.81%
1,523,144.53
1,508,568.73
94.72 4.14%
1,420,782.00
2,843.07
0.95%
(87,786.73)
Aaa / AA+
AAA
1.84 1.78
91282CED9 US Treasury Note
1.750% Due 03/15/2025
3,100,000.00 Various
2.23%
3,057,617.20
3,073,110.97
95.73 4.14%
2,967,766.40
6,928.66
1.98%
(105,344.57)
Aaa / AA+
AAA
1.88 1.81
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
2,500,000.00 03/21/2022
2.24%
2,360,839.85
2,410,496.11
93.00 4.05%
2,325,000.00
25.48 1.55%
(85,496.11)
Aaa / AA+
AAA
2.00 1.95
91282CAB7 US Treasury Note
0.250% Due 07/31/2025
1,500,000.00 03/12/2021
0.72%
1,469,765.63
1,484,457.38
92.12 3.94%
1,381,816.50
932.32
0.92%
(102,640.88)
Aaa / AA+
AAA
2.25 2.20
91282CAM3 US Treasury Note
0.250% Due 09/30/2025
2,400,000.00 Various
0.56%
2,366,140.63
2,382,106.35
91.81 3.83%
2,203,500.00
508.20
1.47%
(178,606.35)
Aaa / AA+
AAA
2.42 2.37
91282CAT8 US Treasury Note
0.250% Due 10/31/2025
2,450,000.00 Various
0.49%
2,422,492.19
2,435,588.46
91.48 3.86%
2,241,176.70
16.65 1.49%
(194,411.76)
Aaa / AA+
AAA
2.51 2.45
91282CAZ4 US Treasury Note
0.375% Due 11/30/2025
2,250,000.00 03/26/2021
0.77%
2,209,658.20
2,227,690.30
91.58 3.83%
2,060,507.25
3,523.35
1.37%
(167,183.05)
Aaa / AA+
AAA
2.59 2.52
91282CBH3 US Treasury Note
0.375% Due 01/31/2026
2,500,000.00 05/27/2021
0.75%
2,456,445.31
2,474,361.60
91.15 3.79%
2,278,807.50
2,330.80
1.52%
(195,554.10)
Aaa / AA+
AAA
2.76 2.69
91282CBW0 US Treasury Note
0.750% Due 04/30/2026
2,500,000.00 05/27/2021
0.80%
2,493,652.34
2,496,134.21
91.61 3.73%
2,290,235.00
50.95 1.52%
(205,899.21)
Aaa / AA+
AAA
3.00 2.92
91282CCZ2 US Treasury Note
0.875% Due 09/30/2026
1,400,000.00 10/18/2021
1.19%
1,379,054.68
1,385,534.17
91.14 3.65%
1,276,023.00
1,037.57
0.85%
(109,511.17)
Aaa / AA+
AAA
3.42 3.31
91282CDG3 US Treasury Note
1.125% Due 10/31/2026
1,400,000.00 11/15/2021
1.25%
1,391,468.75
1,393,968.23
91.72 3.67%
1,284,063.20
42.80 0.85%
(109,905.03)
Aaa / AA+
AAA
3.51 3.38
91282CEW7 US Treasury Note
3.250% Due 06/30/2027
3,250,000.00 Various
3.18%
3,260,312.50
3,258,370.99
98.68 3.59%
3,207,217.00
35,305.59
2.16%
(51,153.99)
Aaa / AA+
AAA
4.17 3.82
91282CFB2 US Treasury Note
2.750% Due 07/31/2027
400,000.00 08/22/2022
3.12%
393,218.75
394,162.78
96.75 3.58%
386,984.40
2,734.81
0.26%
(7,178.38)
Aaa / AA+
AAA
4.25 3.94
91282CFH9 US Treasury Note
3.125% Due 08/31/2027
4,500,000.00 Various
3.28%
4,468,902.34
4,472,897.28
98.24 3.57%
4,420,899.00
23,692.26
2.96%
(51,998.28)
Aaa / AA+
AAA
4.34 3.99
91282CFM8 US Treasury Note
4.125% Due 09/30/2027
3,450,000.00 Various
4.31%
3,421,152.34
3,424,102.29
102.26
3.57%
3,528,028.65
12,053.79
2.36%
103,926.36
Aaa / AA+
AAA
4.42 4.00
As of April 30, 2023
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Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CFZ9 US Treasury Note
3.875% Due 11/30/2027
850,000.00 12/05/2022
3.81%
852,656.25
852,443.17
101.45
3.53%
862,285.05
13,754.12
0.58%
9,841.88
Aaa / AA+
AAA
4.59 4.11
91282CGC9 US Treasury Note
3.875% Due 12/31/2027
2,750,000.00 Various
3.67%
2,775,107.42
2,773,808.83
101.44
3.54%
2,789,638.50
35,618.96
1.88%
15,829.67
Aaa / AA+
AAA
4.67 4.19
91282CGH8 US Treasury Note
3.500% Due 01/31/2028
3,000,000.00 02/07/2023
3.81%
2,957,929.69
2,959,827.25
99.89 3.53%
2,996,601.00
26,104.97
2.01%
36,773.75
Aaa / AA+
AAA
4.76 4.31
91282CGP0 US Treasury Note
4.000% Due 02/29/2028
3,700,000.00 Various
4.00%
3,699,113.28
3,699,271.54
102.20
3.50%
3,781,514.70
24,934.78
2.53%
82,243.16
Aaa / AA+
AAA
4.84 4.34
TOTAL US Treasury 52,900,000.00 2.29%
52,523,617.20
52,618,969.37 3.84%
50,965,952.05
226,550.51
34.06%
(1,653,017.32)
Aaa / AA+
AAA
3.20 2.98
TOTAL PORTFOLIO 156,780,518.00 1.90%
156,713,240.55
156,518,240.52 4.41%
149,737,765.51
556,944.47
100.00%
(6,780,475.01)
Aa1 / AA
AAA
2.60 2.23
TOTAL MARKET VALUE PLUS ACCRUALS 150,294,709.98
As of April 30, 2023
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SECTION | Section 4 | Transactions
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Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount InterestPur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 02/08/2023 91282CGH8 3,000,000.00 US Treasury Note 4% Due: 01/31/2028
99.000 3.81% 2,957,929.69 2,320.00 2,960,249.69 0.00
Purchase 02/28/2023 91282CGP0 2,100,000.00 US Treasury Note 4% Due: 02/29/2028
99.000 4.16% 2,084,988.28 0.00 2,084,988.28 0.00
Purchase 03/09/2023 57636QAW4 945,000.00 MasterCard Inc Callable Note Cont 2/9/28 5% Due: 03/09/2028
100.000 4.90% 944,083.35 0.00 944,083.35 0.00
Purchase 03/17/2023 91282CGP0 1,600,000.00 US Treasury Note 4% Due: 02/29/2028
101.000 3.80% 1,614,125.00 2,957.00 1,617,082.00 0.00
Subtotal 7,645,000.00 7,601,126.32 5,277.00 7,606,403.32 0.00 TOTAL ACQUISITIONS 7,645,000.00 7,601,126.32 5,277.00 7,606,403.32 0.00
DISPOSITIONS
Sale 02/08/2023 3137EAFA2 900,000.00 FHLMC Note
Due: 12/04/2023
96.000 0.28% 865,782.00 400.00 866,182.00 -33,975.00
Sale 02/08/2023 912828B66 2,000,000.00 US Treasury Note 3% Due: 02/15/2024
98.000 1.96% 1,958,203.13 26,454.00 1,984,657.13 -53,653.00 Sale 02/24/2023 3130A0XE5 1,500,000.00 FHLB Note
3% Due: 03/08/2024
98.000 2.27% 1,470,615.00 22,479.00 1,493,094.00 -43,642.00 Sale 03/09/2023 24422EVN6 830,000.00 John Deere Capital Corp Note Due: 01/17/2024
96.000 0.47% 796,459.70 540.00 796,999.70 -33,364.00
Sale 03/15/2023 91282CBR1 1,450,000.00 US Treasury Note Due: 03/15/2024
96.000 0.33% 1,386,902.34 0.00 1,386,902.34 -61,908.00
January 31, 2023 through April 30, 2023
As of April 30, 2023
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Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount InterestPur/Sold Total Amount Gain/Loss Sale 03/16/2023 24422EVN6 200,000.00 John Deere Capital Corp Note Due: 01/17/2024
96.000 0.47% 192,240.00 148.00 192,388.00 -7,718.00
Subtotal 6,880,000.00 6,670,202.17 50,021.00 6,720,223.17 -234,260.00 TOTAL DISPOSITIONS 6,880,000.00 6,670,202.17 50,021.00 6,720,223.17 -234,260.00 January 31, 2023 through April 30, 2023
As of April 30, 2023
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Important Disclosures
2023 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.
Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account.
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Benchmark Disclosures
ICE BofA 1-5 Yr US Treasury & Agency Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.
As of April 30, 2023
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CITY OF CUPERTINO
Agenda Item
23-12302 Agenda Date: 5/16/2023
Agenda #: 18.
Subject: Receive the Monthly Treasurer's Report for March 2023 Receive the Monthly Treasurer's Report for March 2023
CITY OF CUPERTINO Page 1 of 1 Printed on 5/10/2023
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1 CITY COUNCIL STAFF REPORT
Meeting: May 16, 2023
Subject
Receive the Monthly Treasurer's Report for March 2023
Recommended Action
Receive the Monthly Treasurer's Report for March 2023
Reasons for Recommendation
Background
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.
The City's Municipal Code Section 2.24.030 Monthly Reports 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, the City Manager and made available for review by such other persons who may so request.
Lastly, the City's Municipal Code Section 2.88.100 Duties–Powers–Responsibilities lists one of the powers and functions of the Audit Committee is "to review the monthly Treasurer's report."
Per the referenced code provisions, a Treasurer's Report (report and accounting of all receipts, disbursements, and fund balances) shall be submitted to the Audit Committee and City Council every month.
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2 Cash vs. Accrual Basis Accounting
Cash basis accounting and accrual basis accounting differ in the way revenues and expenses are recognized and recorded, primarily with regard to their timing.
Under cash basis accounting, revenues are recorded when payment is received, and expenses are recorded when payment is made. This method of accounting recognizes transactions only when cash changes hands. In contrast, accrual basis accounting recognizes revenues when they are earned (but not necessarily received) and expenses when they are incurred (but not necessarily paid). This method of accounting recognizes transactions as they occur, regardless of whether cash has been exchanged.
Receipts, disbursements, and cash balance are measured on a cash basis. The cash balance shows the total cash and investments in the City's accounts. The ending balance is the beginning balance plus receipts minus disbursements. Journal adjustments generally include transactions recorded in other systems and imported into New World, Councilapproved budget adjustments, quarterly Cost Allocation Plan (CAP) charges, and quarterly interest earnings.
Revenues, expenditures, and fund balance are measured on an accrual basis. As a result, the amount in fund balance does not mean the City has that much cash on hand. Instead, fund balance is the difference between assets and liabilities. The ending balance is the beginning balance plus revenues minus expenditures.
Treasurer's Report
The report provides an update on the City's cash and fund balances for March 2023. The report is as of April 30, 2023.
Receipts, Disbursements, and Cash Balance
The City's General Fund ending cash and investment balance was $123.0 million, increasing by $1.7 million from the prior month. Receipts were $7.1 million, disbursements were $(5.4) million, and journal adjustments were $(9,559) for the month.
The City's total ending cash and investment balance was $228.3 million, increasing by $1.4 million from the prior month. Receipts were $7.6 million, disbursements were $(7.4) million, and journal adjustments were $1.2 million for the month.
Journal adjustments included the following:
Parks and Recreation transactions imported from Active Network into New World Bank Fees
Workers’ Compensation transactions
Cost Allocation Plan Quarterly Charges
Correction of GL Accounts for SB2 Planning grant
Revenue recognition from ADA Curb ramp work completed at I-280/Junipero Serra Channel Trail
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3 Fund Balance/Net Position
The City's General Fund ending fund balance was $111.1 million, decreasing by $0.7 million from the prior month due to revenues of $7.0 million and expenditures of $7.7 million.
The City's total ending fund balance was $211.0 million, decreasing by $0.9 million from the prior month due to revenues of $9.3 million and expenditures of $10.2 million.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: __________________
Thomas Leung
Budget Manager
Reviewed by: __________________
Kristina Alfaro
Director of Administrative Services
Approved for Submission by: __________________
Pamela Wu
City Manager
Attachments:
A – Report of City-wide Receipts, Disbursements, and Cash Balances March 2023 B – Report of City‐wide Fund Balances/Net Position March 2023 977
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March 2023 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments
Beginning Balance
Fund Type Fund Number/Name as of February 28, 2023 Receipts Disbursements Journal Adjustments Ending Balance as
of March 31, 2023
General Fund 100 General Fund 121,254,703 7,131,508 (5,392,628) (9,559) 122,984,024General Fund 130 Investment Fund 189,996 ‐ ‐ (143,434) 46,562 Special Revenue Funds 210 Storm Drain Improvement 2,156,363 ‐ (6,693) 9,512 2,159,182 Special Revenue Funds 215 Storm Drain AB1600 1,835,477 9,874 ‐ 8,166 1,853,517 Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 1,140,537 23,606 (89,391) (81,278) 993,474Special Revenue Funds 260 CDBG 606,325 59,387 (13,098) 3,517 656,131 Special Revenue Funds 261 HCD Loan Rehab 222,300 ‐ ‐ ‐ 222,300Special Revenue Funds 265 BMR Housing 5,497,920 3,000 (35,081) (13,254) 5,452,585 Special Revenue Funds 270 Transportation Fund 11,591,636 232,101 (124,752) (116,722) 11,582,262 Special Revenue Funds 271 Traffic Impact 763,167 ‐ ‐ 3,409 766,576Special Revenue Funds 280 Park Dedication 19,738,430 30,000 (3,276) 87,974 19,853,128 Special Revenue Funds 281 Tree Fund 74,039 481 ‐ 336 74,856Debt Service Funds 365 Public Facilities Corp 2,322,250 ‐ ‐ ‐ 2,322,250Capital Project Funds 420 Capital Improvement Fund 27,108,125 ‐ (349,162) 46,146 26,805,109 Capital Project Funds 427 Stevens Creek Corridor Park 160,639 ‐ ‐ ‐ 160,639Capital Project Funds 429 Capital Reserve* 11,637,046 ‐ ‐ ‐ 11,637,046Enterprise Funds 520 Resource Recovery 5,557,963 123,429 (132,622) (35,085) 5,513,686 Enterprise Funds 560 Blackberry Farm 1,087,452 888 (106,176) 10,810 992,973 Enterprise Funds 570 Sports Center 1,958,728 ‐ (407,370) 153,181 1,704,539 Enterprise Funds 580 Recreation Program 3,523,639 ‐ (110,853) 107,570 3,520,356 Internal Service Funds 610 Innovation & Technology 3,553,950 ‐ (438,632) 633,434 3,748,753 Internal Service Funds 620 Workersʹ Compensation 3,738,725 ‐ (3,177) 106,879 3,842,427 Internal Service Funds 630 Vehicle/Equip Replacement 1,096,695 ‐ (76,197) 394,769 1,415,266 Internal Service Funds 641 Compensated Absence/LTD 1,040,717 ‐ (8,044) 1,726 1,034,399 Internal Service Funds 642 Retiree Medical (897,399) ‐ (116,336) (3,696) (1,017,430)Total $ 226,959,424 $ 7,614,274 $ (7,413,487) $ 1,164,401 $ 228,324,612 * For reporting purposes, this fund rolls up/combines with Fund 420Printed April 30, 2023For more information on funds, please see cupertino.org/fund‐structure 978
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March 2023 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance
Fund Type Fund Number/Name as of February 28, 2023 Revenues Expenditures as of March 31, 2023 General Fund 100 General Fund 111,732,185 7,015,690 7,686,082 111,061,793 General Fund 130 Investment Fund 229,425 ‐ ‐ 229,425
Special Revenue Funds 210 Storm Drain Improvement 2,156,363 9,512 6,693 2,159,182Special Revenue Funds 215 Storm Drain AB1600 1,835,477 18,040 ‐ 1,853,517Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 1,172,458 5,111 167,737 1,009,832 Special Revenue Funds 260 CDBG 1,131,803 62,696 13,388 1,181,111 Special Revenue Funds 261 HCD Loan Rehab 222,300 ‐ ‐ 222,300 Special Revenue Funds 265 BMR Housing 5,497,720 27,063 72,197 5,452,585 Special Revenue Funds 270 Transportation Fund 11,583,150 298,555 311,326 11,570,379Special Revenue Funds 271 Traffic Impact 763,167 3,409 ‐ 766,576 Special Revenue Funds 280 Park Dedication 19,738,430 117,974 3,276 19,853,128 Special Revenue Funds 281 Tree Fund 74,039 817 ‐ 74,856 Debt Service Funds 365 Public Facilities Corp 2,322,250 ‐ ‐ 2,322,250 Capital Project Funds 420 Capital Improvement Fund 23,999,072 46,146 254,634 23,790,584Capital Project Funds 427 Stevens Creek Corridor Park 160,639 ‐ ‐ 160,639 Capital Project Funds 429 Capital Reserve* 11,637,046 ‐ ‐ 11,637,046 Enterprise Funds 520 Resource Recovery 4,690,718 147,810 191,913 4,646,614Enterprise Funds 560 Blackberry Farm 762,947 35,739 93,969 704,717 Enterprise Funds 570 Sports Center 2,240,371 226,771 547,802 1,919,340 Enterprise Funds 580 Recreation Program 3,020,857 132,121 163,009 2,989,969 Internal Service Funds 610 Innovation & Technology 2,325,592 637,556 440,470 2,522,678Internal Service Funds 620 Workersʹ Compensation 2,109,529 125,915 22,213 2,213,231Internal Service Funds 630 Vehicle/Equip Replacement 2,310,962 398,197 81,570 2,627,588Internal Service Funds 641 Compensated Absence/LTD 1,040,717 4,540 10,858 1,034,399 Internal Service Funds 642 Retiree Medical (897,399) ‐ 120,031 (1,017,430) Total $ 211,859,819 $ 9,313,663 $ 10,187,172 $ 210,986,310 * For reporting purposes, this fund rolls up/combines with Fund 420 Printed April 30, 2023For more information on funds, please see cupertino.org/fund‐structure 979
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CITY OF CUPERTINO
Agenda Item
22-11722 Agenda Date: 5/16/2023
Agenda #: 19.
Subject: Receive the Monthly Treasurer's Report for April 2023 Receive the Monthly Treasurer's Report for April 2023
CITY OF CUPERTINO Page 1 of 1 Printed on 5/10/2023
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1 CITY COUNCIL STAFF REPORT
Meeting: May 16, 2023
Subject
Receive the Monthly Treasurer's Report for April 2023
Recommended Action
Receive the Monthly Treasurer's Report for April 2023
Reasons for Recommendation
Background
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.
The City's Municipal Code Section 2.24.030 Monthly Reports 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, the City Manager and made available for review by such other persons who may so request.
Lastly, the City's Municipal Code Section 2.88.100 Duties–Powers–Responsibilities lists one of the powers and functions of the Audit Committee is "to review the monthly Treasurer's report."
Per the referenced code provisions, a Treasurer's Report (report and accounting of all receipts, disbursements, and fund balances) shall be submitted to the Audit Committee and City Council every month.
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2 Cash vs. Accrual Basis Accounting
Cash basis accounting and accrual basis accounting differ in the way revenues and expenses are recognized and recorded, primarily with regard to their timing.
Under cash basis accounting, revenues are recorded when payment is received, and expenses are recorded when payment is made. This method of accounting recognizes transactions only when cash changes hands. In contrast, accrual basis accounting recognizes revenues when they are earned (but not necessarily received) and expenses when they are incurred (but not necessarily paid). This method of accounting recognizes transactions as they occur, regardless of whether cash has been exchanged.
Receipts, disbursements, and cash balance are measured on a cash basis. The cash balance shows the total cash and investments in the City's accounts. The ending balance is the beginning balance plus receipts minus disbursements. Journal adjustments generally include transactions recorded in other systems and imported into New World, Councilapproved budget adjustments, quarterly Cost Allocation Plan (CAP) charges, and quarterly interest earnings.
Revenues, expenditures, and fund balance are measured on an accrual basis. As a result, the amount in fund balance does not mean the City has that much cash on hand. Instead, fund balance is the difference between assets and liabilities. The ending balance is the beginning balance plus revenues minus expenditures.
Treasurer's Report
The report provides an update on the City's cash and fund balances for April 2023. The report is as of April 30, 2023.
Receipts, Disbursements, and Cash Balance
The City's General Fund ending cash and investment balance was $126.7 million, increasing by $3.8 million from the prior month. Receipts were $8.7 million, disbursements were $(5.0) million, and journal adjustments were $48,836 for the month.
The City's total ending cash and investment balance was $231.6 million, increasing by $3.3 million from the prior month. Receipts were $9.1 million, disbursements were $(6.5) million, and journal adjustments were $646,000 million for the month.
Journal adjustments included the following:
Parks and Recreation transactions imported from Active Network into New World LAIF Quarterly Interest deposit
Revenue recognition from ADA Curb ramp work completed at I-280/Junipero Serra Channel Trail
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3 Fund Balance/Net Position
The City's General Fund ending fund balance was $118.7 million, increasing by $7.7 million from the prior month due to revenues of $12.4 million and expenditures of $4.7 million.
The City's total ending fund balance was $218.0 million, increasing by $7.0 million from the prior month due to revenues of $13.2 million and expenditures of $6.2 million.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: __________________
Thomas Leung
Budget Manager
Reviewed by: __________________
Kristina Alfaro
Director of Administrative Services
Approved for Submission by: __________________
Pamela Wu
City Manager
Attachments:
A – Report of City-wide Receipts, Disbursements, and Cash Balances April 2023 B – Report of City‐wide Fund Balances/Net Position April 2023 983
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April 2023 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments
Beginning Balance Ending Balance
Fund Type Fund Number/Name as of March 31, 2023 Receipts Disbursements Journal Adjustments as of April 30, 2023 General Fund 100 General Fund 122,984,024 8,670,952 (4,959,824) 48,836 126,743,988 General Fund 130 Investment Fund 46,562 ‐ ‐ 143,434 189,996 Special Revenue Funds 210 Storm Drain Improvement 2,159,182 ‐ ‐ ‐ 2,159,182 Special Revenue Funds 215 Storm Drain AB1600 1,853,517 5,982 ‐ ‐ 1,859,499Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 993,474 23,108 (81,313) ‐ 935,269 Special Revenue Funds 260 CDBG 656,131 662 (23,230) ‐ 633,563 Special Revenue Funds 261 HCD Loan Rehab 222,300 ‐ ‐ ‐ 222,300 Special Revenue Funds 265 BMR Housing 5,452,585 ‐ (66,740) ‐ 5,385,846 Special Revenue Funds 270 Transportation Fund 11,582,262 218,292 (137,522) ‐ 11,663,032Special Revenue Funds 271 Traffic Impact 766,576 ‐ ‐ ‐ 766,576 Special Revenue Funds 280 Park Dedication 19,853,128 ‐ (2,634) ‐ 19,850,494 Special Revenue Funds 281 Tree Fund 74,856 ‐ ‐ ‐ 74,856 Debt Service Funds 365 Public Facilities Corp 2,322,250 ‐ ‐ ‐ 2,322,250 Capital Project Funds 420 Capital Improvement Fund 26,805,109 ‐ (80,786) 3,807 26,728,130Capital Project Funds 427 Stevens Creek Corridor Park 160,639 ‐ (1,245) ‐ 159,394 Capital Project Funds 429 Capital Reserve* 11,637,046 ‐ ‐ ‐ 11,637,046 Enterprise Funds 520 Resource Recovery 5,513,686 149,314 (136,524) ‐ 5,526,476Enterprise Funds 560 Blackberry Farm 992,973 ‐ (30,604) 45,309 1,007,678Enterprise Funds 570 Sports Center 1,704,539 1,200 (303,886) 248,507 1,650,360Enterprise Funds 580 Recreation Program 3,520,356 1,810 (99,209) 156,229 3,579,187Internal Service Funds 610 Innovation & Technology 3,748,753 20 (351,812) ‐ 3,396,961Internal Service Funds 620 Workersʹ Compensation 3,842,427 ‐ (3,302) ‐ 3,839,125Internal Service Funds 630 Vehicle/Equip Replacement 1,415,266 16,791 (64,962) ‐ 1,367,095 Internal Service Funds 641 Compensated Absence/LTD 1,034,399 ‐ 794 ‐ 1,035,193 Internal Service Funds 642 Retiree Medical (1,017,430) ‐ (118,638) ‐ (1,136,068) Total $ 228,324,612 $ 9,088,130 $ (6,461,437) $ 646,123 $ 231,597,428 * For reporting purposes, this fund rolls up/combines with Fund 420Printed April 30, 2023For more information on funds, please see cupertino.org/fund‐structure 984
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April 2023 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance
Fund Type Fund Number/Name as of March 31, 2023 Revenues Expenditures as of April 30, 2023 General Fund 100 General Fund 111,061,793 12,355,855 4,684,086 118,733,561 General Fund 130 Investment Fund 229,425 ‐ ‐ 229,425
Special Revenue Funds 210 Storm Drain Improvement 2,159,182 ‐ ‐ 2,159,182 Special Revenue Funds 215 Storm Drain AB1600 1,853,517 5,982 ‐ 1,859,499 Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 1,009,832 22,414 82,063 950,183 Special Revenue Funds 260 CDBG 1,181,111 162 23,230 1,158,043 Special Revenue Funds 261 HCD Loan Rehab 222,300 ‐ ‐ 222,300 Special Revenue Funds 265 BMR Housing 5,452,585 234 66,973 5,385,846 Special Revenue Funds 270 Transportation Fund 11,570,379 258,292 125,969 11,702,702 Special Revenue Funds 271 Traffic Impact 766,576 ‐ ‐ 766,576 Special Revenue Funds 280 Park Dedication 19,853,128 ‐ 2,634 19,850,494 Special Revenue Funds 281 Tree Fund 74,856 ‐ ‐ 74,856
Debt Service Funds 365 Public Facilities Corp 2,322,250 ‐ ‐ 2,322,250 Capital Project Funds 420 Capital Improvement Fund 23,790,584 3,807 75,680 23,718,712 Capital Project Funds 427 Stevens Creek Corridor Park 160,639 ‐ 1,245 159,394Capital Project Funds 429 Capital Reserve* 11,637,046 ‐ ‐ 11,637,046 Enterprise Funds 520 Resource Recovery 4,646,614 149,314 138,085 4,657,843 Enterprise Funds 560 Blackberry Farm 704,717 46,273 30,582 720,409 Enterprise Funds 570 Sports Center 1,919,340 207,969 277,842 1,849,466 Enterprise Funds 580 Recreation Program 2,989,969 102,578 99,061 2,993,486 Internal Service Funds 610 Innovation & Technology 2,522,678 ‐ 353,987 2,168,691 Internal Service Funds 620 Workersʹ Compensation 2,213,231 ‐ 3,302 2,209,929 Internal Service Funds 630 Vehicle/Equip Replacement 2,627,588 16,738 63,483 2,580,843 Internal Service Funds 641 Compensated Absence/LTD 1,034,399 8,942 8,148 1,035,193 Internal Service Funds 642 Retiree Medical (1,017,430) ‐ 118,638 (1,136,068) Total $ 210,986,310 $ 13,178,559 $ 6,155,007 $ 218,009,862 * For reporting purposes, this fund rolls up/combines with Fund 420 Printed April 30, 2023For more information on funds, please see cupertino.org/fund‐structure 985
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CITY OF CUPERTINO
Agenda Item
22-11724 Agenda Date: 5/16/2023
Agenda #: 20.
Subject: Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2023 Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2023 CITY OF CUPERTINO Page 1 of 1 Printed on 5/10/2023
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CITY COUNCIL STAFF REPORT
Meeting: May 16, 2023
Subject
Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2023 Recommended Action
Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2023 Reasons for Recommendation
Background
On May 19, 2022, the City Council approved the City Investment Policy. Per the City's Investment Policy, the Treasurer shall submit a quarterly investment report to the City Council approximately 45 days following the end of the quarter. In addition to the quarterly investment reports, monthly transaction reports are submitted to the City Council within 30 days of the end of the reporting period per California Government Code Section 53607. The quarterly investment report offers a more extensive discussion of the City's economy, cash flow, and investments.
The City's Municipal Code Section 2.24.050 Investment Authority states that the Treasurer shall make a monthly report of all investment transactions to the City Council. Lastly, the City's Municipal Code Section 2.88.100 Duties–Powers–Responsibilities lists one of the powers and functions of the Audit Committee is "to review the monthly Treasurer's report."
Per the referenced code provisions, a Treasurer's Investment Report shall be submitted to the Audit Committee and City Council every month.
Treasurer's Investment Report
The report provides an update on the City's investment portfolio for the month ending March 31, 2023. The report is as of April 19, 2023.
The attached statements include balances and transactions of the City's investments with the Local Agency Investment Fund (LAIF) and Chandler Asset Management. The Chandler investment report provides information on the investment type, issuer, 987
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2 purchase date, maturity date, cost value, par value, and market value for each security, as well as the weighted average maturity and weighted average yield of all investments.
While not governed by the City's Investment Policy, statements for the Public Agency Retirement Services (PARS) Section 115 Trusts are also attached per a request from the Treasurer's Report sub-committee.
The City's General Ledger cash and investments balance was $227.6 million, a $7.5 million increase from the prior quarter.
Cash and Investments – General Ledger Balance
Fund Type Quarter Ending
December 31, 2022
Quarter Ending
March 31, 2023
General Fund 115,442,515 122,552,380
Special Revenue 42,733,978 43,420,733
Debt Service 2,322,250 2,322,250
Capital Projects 39,211,578 38,602,793
Enterprise 11,711,735 11,700,833
Internal Service 9,609,945 8,979,838
Total $221,031,999 $227,578,827
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3 The $227.6 million in cash and investments includes $39.4 million in cash, $21.2 million in cash equivalents, $149.7 million in investments, and $17.2 million restricted for funding pension costs.
The City pools cash for all funds except restricted funds. However, the City accounts for interest earnings, revenues, and expenditures separately for each fund to adequately meet the purpose and restrictions of each funding source. Pooling funds is a common and appropriate practice used in public agencies. By pooling funds, the City can benefit from economies of scale, diversification, liquidity, and ease of administration. 989
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4 Cash and Investments – General Ledger Balance
Quarter Ending
December 31,
2022
Quarter Ending
March 31, 2023
% of
Portfolio
Cash in banks and on hand
Operating Checking (Wells Fargo) 32,900,568 39,338,553 17% Workers' Compensation Checking (Wells Fargo) 31,453 29,999 0% Payroll Checking (Wells Fargo) - - 0%
Restricted for Bond Repayments1(BNY Mellon) - - 0%
Petty Cash and Change 5,000 4,700 0%
Cash Equivalents
Local Agency Investment Fund 21,131,545 21,242,141 9%
Investments
Investments (Chandler) 149,723,383 149,723,383 66%
Restricted for Pension2(PARS) 17,240,051 17,240,051 8%
Total Cash and Investments3 $221,031,999 $227,578,827 100% 1 Cash held by fiscal agent for bond repayments
2 In accordance with GASB 67/68, the assets in the Section 115 Pension Trust are reported as restricted cash and investments in the General Fund. The assets can only be used to fund CalPERS costs. 3 Assets in the Section 115 OPEB Trust are excluded as the City cannot use these assets to fund its own operations. The assets are held in trust for retirees' post-employment health benefits.
The table below shows the bank balances for the City's cash and investments. Bank and General Ledger balances differ due to timing. Bank balances do not include outstanding checks and deposits in transit. The General Ledger is updated quarterly with interest earnings and annually with the year-end investment market values.
Cash and Investments – Bank Balance
Quarter Ending
December 31,
2022
Quarter Ending
March 31, 2023
% of
Portfolio
Cash in banks and on hand
Operating Checking (Wells Fargo) 33,821,218 39,553,713 17% Workers' Compensation Checking (Wells Fargo) 33,538 31,312 0% Payroll Checking (Wells Fargo) - - 0%
Restricted for Bond Repayments1(BNY Mellon) 8,333 - 0%
Cash Equivalents
Local Agency Investment Fund 21,170,973 21,281,569 9%
Investments
Investments (Chandler) 147,282,846 149,670,106 65%
Restricted for Pension2(PARS) 17,395,501 18,329,961 8%
Total Cash and Investments3 $219,712,409 $228,866,661 100% 990
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5 1 Cash held by fiscal agent for bond repayments
2 In accordance with GASB 67/68, the assets in the Section 115 Pension Trust are reported as restricted cash and investments in the General Fund. The assets can only be used to fund CalPERS costs. 3 Assets in the Section 115 OPEB Trust are excluded as the City cannot use these assets to fund its own operations. The assets are held in trust for retirees' post-employment health benefits.
Local Agency Investment Fund (LAIF)
LAIF is an investment pool administered by the State of California Treasurer and governed by California Government Code. The City can withdraw funds from LAIF at any time. As a result, the City uses LAIF for short-term investment, liquidity, and yield.
The City's LAIF account had a balance of $21.3 million. The quarterly interest rate was
2.74%. The City did not make any deposits or withdrawals in the quarter ending March 2023.
Investment Portfolio
In FY 2018-19, the City conducted a Request for Proposal (RFP) for investment management services and selected Chandler Asset Management. Under the City's Treasurer's direction, Chandler Asset Management manages the City's investment portfolio in accordance with the City's investment objectives. The City's investment objectives, in order of priority, are to provide:
Safety to ensure the preservation of capital in the overall portfolio Sufficient liquidity for cash needs
A market rate of return consistent with the investment program The performance objective is to earn a total rate of return through a market cycle equal to or above the return on the benchmark index. Chandler Asset Management invests in highquality fixed-income securities consistent with the City's Investment Policy and California Government Code to achieve the objective.
The portfolio's market value was $149.7 million, compared to $147.3 million at the end of the previous quarter. The table below includes historical comparisons of the City's portfolio:
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6 December
31, 2022
January 31,
2023
February 28,
2023
March 31,
2023
Market Value 147,282,846 148,742,480 147,258,241 149,670,106 Par Value 156,155,965 156,310,484 156,479,011 156,579,547 Book Value 155,929,700 156,105,058 156,193,550 156,313,174 Average Maturity 2.62 years 2.66 years 2.71 years 2.69 years Average Modified Duration 2.28 2.28 2.32 2.31
Average Purchase Yield 1.70% 1.73% 1.81% 1.88%
Average Market Yield 4.63% 4.39% 4.89% 4.41%
Average Quality1 AA/Aa1 AA/Aa1 AA/Aa1 AA/Aa1
1 S&P and Moody's respectively
The portfolio's market value fluctuates depending on interest rates. When interest rates decrease after an investment is purchased, the market value of the investment increases.
In contrast, when interest rates increase after an investment is purchased, the market value of the investment decreases. At the time of purchase, the City intends to hold all investments until maturity, meaning that changes in market value will not impact the City's investment principal. If the market value decreases, the City will incur an unrealized loss. However, the loss will only be realized if the City sells its investments before their maturity. The market values for the portfolio were provided by Chandler Asset Management.
Section 115 Trust Investment Portfolio
The City established Section 115 Trusts to reduce pension rate volatility and pre-fund Other Post-Employment Benefits (OPEB) costs. These trusts are a tax-exempt investment tool that local governments can use to set aside funds for pension and retiree health costs.
Contributions made to the trust can only be used to fund retirement plans.
Investments in the Section 115 Trusts are governed by separate investment policies, which are distinct from the City's Investment Policy. On December 6, 2022, City Council approved the Pension Trust Investment Policy and OPEB Trust Investment Policy. Public Agency Retirement Services (PARS) administers the trust, while US Bank manages the investments in accordance with the approved investment policies.
Both Section 115 Trusts are invested in "balanced" portfolios. The investment objective is designed to provide a moderate amount of current income with moderate growth of capital. This type of investment strategy is generally recommended for investors with a long-term time horizon. The strategic asset allocation ranges for this investment objective are:
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7 Asset Class Range Target
Equities 50-70% 63%
Fixed Income 20-40% 29%
Real Estate 0-15% 5%
Commodities 0-10% 2%
Cash 0-10% 1%
The Section 115 Pension Trust had a balance of $18.3 million, an increase of $0.9 million from the prior quarter due to investment gains. The Section 115 OPEB Trust had a balance of $33.3 million, an increase of $1.7 million from the prior month due to investment gains.
The quarterly investment returns were 5.46% for both the Pension Trust and OPEB Trust.
Analysis
The City compares its portfolio to LAIF and one-year and two-year Treasury yields. Yield comparisons for the one-year Treasury, two-year Treasury, LAIF, and City average are presented below:
In March, one-year and two-year Treasury yields dropped. The yield curve remained inverted and the spread between the two-year and 10-year Treasury yield became more inverted. The one-year and two-year Treasury yields were 4.64% and 4.06%, respectively.
The one-year Treasury yield decreased by 9 basis points, and the two-year Treasury yield decreased by 35 basis points from December 31, 2022. The yield of the City's investment portfolio was 4.41%, lower than the one-year Treasury yield but higher than LAIF and two-year Treasury yield.
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8 Cash Flow History
Historical revenues, expenditures, and liquidity ratios are presented below:
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9 portfolio's investment structure is complete, so the City anticipates the ratio of cash and cash equivalents to revenues and expenditures to continue to flatten out moving forward.
While a formal liquidity level has not been established, significant and consistent fluctuations in the ratio may indicate that additional funds should be invested or, conversely, that investments should be liquidated. In recent years, sufficient liquidity levels for operating revenues and expenditures have approximated a ratio of 1.0. In March 2022, the City transferred $15.0 million from the operating account to the investment portfolio, which reduced the March 2022 liquidity ratios.
As of March 31, 2023, the liquidity ratio was 3.3 and 2.0 for revenues and expenditures, respectively. The City will monitor inflows and outflows during the fourth quarter of FY 2022-23 and bring recommendations for the City's investment portfolio as necessary and applicable.
As of March 31, 2023, the City had $60.6 million in cash and cash equivalents in the bank and on hand. Based on the cash flow forecast, the City maintains the ability to meet its expenditure requirements for the next six months.
Cash Flow Forecast
Applying three-year historical trend data for each of the City's revenue and expenditure line items to the FY 2022-23 Adopted Budget, the City estimated the following cash flow forecast for FY 2022-23:
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10 The purpose of this cash flow and liquidity forecast is to illustrate the timing of the City's revenues and expenditures throughout a fiscal year using historical trend data. The first quarter of the fiscal year experiences expenditures exceeding revenues since the City begins receiving its property tax distributions in November and April of the respective fiscal year. In January and April, the City receives additional property tax revenues due to the Vehicle License Fee (VLF) swap. In June, the City tends to experience higher 996
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11 activities, particularly expenditures, due to the year-end close and accrual process. From one fiscal year to the next, the City typically incurs one-time special project or capital expenditure costs. The timing of these costs is more difficult to pinpoint in a particular month.
From a cash flow analysis perspective, the Adopted and Amended Budgets are efficient planning tools for determining cash flow needs for a single fiscal year. If a budget is adopted at a position in which revenues and expenditures are balanced, then it is reasonable to conclude cash flow is unlikely to be of concern. Beyond one fiscal year, a City prepares a twenty-year forward-looking forecast using historical and prospective assumptions. This forecast model is incorporated and presented to the City Council as part of the City's Adopted Budget.
Compliance
All of the City's investments comply with state law and the City's Investment Policy. In compliance with California Government Code 53646 (b)(3), the City maintains the ability to meet its expenditure requirements for the next six months.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: __________________
Thomas Leung
Budget Manager
Reviewed by: __________________
Kristina Alfaro
Director of Administrative Services and City Treasurer
Approved for Submission by: __________________
Matt Morley
Assistant City Manager
Attachments:
A – Chandler Investment Report March 2023
B – Chandler Custodial Statement March 2023
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12 C – PARS Pension and OPEB Account Statement March 2023 D – LAIF Account Statement March 2023
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CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending March 31, 2023
City of Cupertino
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SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Portfolio Holdings
SECTION 4 Transactions
Table of Contents As of March 31, 2023
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SECTION | Section 1 | Economic Update
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Economic Update
Economic trends have been decelerating along with tighter financial conditions and restrictive monetary policy. Recent data suggests positive but below trend growth this year. Although the pace of job growth is moderating, labor markets remain solid, and the U.S. consumer has demonstrated resiliency. Market participants and the Federal Reserve are maintaining very divergent views regarding the future trajectory of monetary policy. Given the cumulative effects of tighter monetary policy and stress in the banking sector, we believe the Federal Reserve is likely near a pause in their rate hiking campaign. If moderate growth continues, we believe the Fed will likely maintain the Federal Funds rate in restrictive territory until inflationary pressures subside.
At the March meeting, the Federal Open Market Committee voted unanimously to raise the target federal funds rate by
0.25% to a range of 4.75 – 5.00%. Fed Chair Powell reiterated the committee’s focus on bringing down inflation to their 2% target; however, the committee softened language about "ongoing increases" in rates in the prior statement to "some additional policy firming may be appropriate". The statement also emphasized that the U.S. banking system is “sound and resilient” and acknowledged the tightening of financial conditions. The Chandler team believes the FOMC is likely near a pause in their rate hiking cycle.
In March, the yield curve inversion narrowed. The 2-year Treasury yield plummeted 79 basis points to 4.03%, the 5-year Treasury yield plunged 61 basis points to 3.58%, and the 10-year Treasury yield fell 45 basis points to 3.47%. The inversion between the 2-year Treasury yield and 10-year Treasury yield declined to -56 basis points at March month-end versus -90 basis points at February month-end. There was no spread between the 2-year Treasury and 10-year Treasury yield one year ago – the yields were approximately equal. The inversion between 3-month and 10-year Treasuries widened to -128 in March from -89 basis points in February. The shape of the yield curve indicates that the probability of recession is increasing.
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Source: US Department of Labor Source: US Department of Labor Employment
The U.S. economy added 236,000 jobs in March, and the prior two months were revised downward by 17,000. Although the pace of job growth is moderating, employment remains strong, with the three-month moving average payrolls at 345,000 and the six-month moving average at 315,000. The private sector reported broad gains, led by leisure and hospitality. The unemployment rate fell to 3.5% due to a sharp rise in the number of people employed, and the participation rate increased to 62.6% from 62.5% in February. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 6.7% from the prior month at 6.8%. Average hourly earnings rose 4.2% year-over-year in March, down from a 4.6% increase in February. Job Openings dipped to 9.9 million, the first drop below 10 million since May of 2021. While the overall pace of hiring is slowing, levels remain consistent with a solid labor market.
0 100
200
300
400
500
600
700
800
900
1,000
MOM Change In (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
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Source: US Department of Labor Source: US Department of Commerce Inflation
The Consumer Price Index (CPI) increased in March 0.1% month-over-month and 5.0% year-over-year, down from 6.0% in February. The Core CPI, which excludes volatile food and energy components, rose 0.4% month-over-month and 5.6% year-over-year, accelerating from 5.5% in February. Housing remained the largest factor in headline CPI representing 60% of the increase. The Personal Consumption Expenditures (PCE) index rose 5.0% year-over-year in February, improving from a 5.3% year-over-year gain in January. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 4.6% year-over-year in February, the smallest increase since October 2021. Inflationary trends are declining but remain above the Fed's 2% target.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YOY( %) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY( %) Change
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Advance Retail Sales fell more than expected month-over-month at -1.0% in March, which translated to a year-over-year deceleration to 2.9% from 5.9% in February. The report indicated a broad-based cooling in discretionary spending as consumers are becoming more cautious about the outlook for the US economy. The Conference Board’s Consumer Confidence Index unexpectedly increased to 104.2 in March from 103.4 in February. While high inflation and recession concerns remain top of mind for many consumers, the strong labor market and low unemployment continue to support the strength in Consumer Confidence.
Source: US Department of Commerce Source: The Conference Board
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YOY (%) Change
80 90
100
110
120
130
140
Index Level
Consumer Confidence
Consumer
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Source: The Conference Board Source: Federal Reserve Bank of Chicago Economic Activity
The Conference Board’s Leading Economic Index (LEI) remained in negative territory for the eleventh consecutive month at -0.3% in February, unchanged from -0.3% in January. The LEI was down 6.5% year-over-year in February versus down 5.9% year-over-year in January. The consistent decline month-over-month continues to signal future contraction in the economy. The Chicago Fed National Activity Index (CFNAI) declined to -0.19 in February from +0.23 in January. On a 3-month moving average basis, the CFNAI increased to -0.13 in February from -0.27 in January, indicating a rate of growth below the historical average trend. -0.50
-0.25
0.00 0.25
0.50 0.75
1.00 Chicago Fed National Activity Index (CFNAI)
3 Month Average
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
Leading Economic Indicators (LEI)
MOM ( %) Change
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Source: US Department of Commerce Source: S&P
Housing
0 200
400
600
800
1000
1200
1400
1600
1800
2000
MOM Change (In Thousands of Units)
Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
21.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
YOY( %) Change
Total housing starts rose 9.8% month-over-month in February to 1,450,000 units and were down 18.4% compared to February 2022. Starts for both single-family and multi-family homes increased as mortgage rates declined from recent peaks. The 30-year fixed rate mortgage fell to an average of 6.24% according to Freddie Mac, down from a peak of 7.08% in October, but up from 4.67% a year ago. According to the Case-Shiller 20-City Home Price Index, the year-over-year increase continued its declining rate of gain to +2.55% in January from +4.62% in December, clearly displaying the impact of higher mortgage rates year-over-year, which have reduced demand for homebuying as affordability has declined. This is the lowest rate of annual appreciation since December 2019. 8 1007
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Source: Institute for Supply Management Source: Federal Reserve Manufacturing
The Institute for Supply Management (ISM) manufacturing index fell to 46.3 in March from 47.7 in February. This is the fifth consecutive month of readings below 50.0, which is indicative of contraction in the manufacturing sector. All components weakened, including the headline, new orders, employment, and prices. Industrial production rose 0.4% in March due to an 8.4% increase in utilities production, as demand increased for heating. This equates to a +0.5% increase in industrial production from the prior year. Capacity utilization increased to 79.8% in March from an upwardly revised 79.6% in February, inching above its 1972-2021 average of 79.6%. 40 42
44 46
48 50
52 54
56 58
60 62
64 66
Institute of Supply Management Purchasing Manager Index
EXPANDING
CONTRACTING
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Industrial Production
YOY( %) Change
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Source: US Department of Commerce Source: US Department of Commerce 3/22 6/22 9/22 12/22
0.9% 1.4% 1.5% 0.7%
1.0% -2.8% -1.8% 0.8%
-3.1% 1.2% 2.9% 0.4%
-0.4% -0.2% 0.2% 0.4%
0.0% -0.1% 0.4% 0.3%
-1.6% -0.6% 3.3% 2.6%
Net Exports and Imports
Total
Gross Private Domestic Investment
Personal Consumption Expenditures
Components of GDP
Federal Government Expenditures
State and Local (Consumption and Gross
Investment) -35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
According to the third estimate, fourth quarter 2022 GDP growth was revised downward to 2.6% from 2.7%. The revision lower was primarily due to weaker growth in personal consumption expenditures and a wider trade gap in net exports. The consensus estimate calls for 1.6% growth in the first quarter and 1.0% growth for the full year 2023. 10 1009
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Federal Reserve
Source: Federal Reserve Source: Bloomberg
At the March meeting, the Federal Open Market Committee voted unanimously to raise the target federal funds rate by 0.25% to a range of
4.75 – 5.00%. Fed Chair Powell reiterated the committee’s focus on bringing down inflation to their 2% target; however, the committee softened language about "ongoing increases" in rates in the prior statement to "some additional policy firming may be appropriate". The statement also emphasized that the U.S. banking system is “sound and resilient” and acknowledged the tightening in financial conditions.
Powell indicated that the extent of these effects is uncertain but speculated that tighter credit conditions could be equivalent to a rate hike or more. The Summary of Economic Projections was little changed, with the consensus target federal funds rate rising to 5.1% by the end of 2023 (implying one more quarter point hike), falling to 4.3% in 2024 (up from 4.1% previously), and declining to 3.1% by the end of 2025. No rate cuts were in the Fed’s base case for this year, contrary to the market consensus. Although projections imply policymakers are winding down interest rate hikes, the statement clearly reflected optionality for the Fed to remain data dependent. The Chandler team believes the Fed is likely near a pause in their rate hiking cycle.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
Effective Federal Funds Rate
Yield (%)
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
In $ millions
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Source: Bloomberg Source: Bloomberg
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Mar-23
Dec-22
Mar-22
Yield (%)
Bond Yields
At the end of March, the 2-year Treasury yield was 169 basis points higher, and the 10-Year Treasury yield was about 113 basis points higher, year-over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield narrowed to -56 basis points at March month-end versus -90 basis points at February month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3- month and 10-year Treasuries widened to -128 in March from -89 basis points in February. The shape of the yield curve indicates that the probability of recession is increasing.
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Section 2| SECTION | Section 2 | Account Profile
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Objectives
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.
Investment Objectives
The City of Cupertino’s investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.
Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities consistent with the investment policy and California Government Code.
As of March 31, 2023
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Compliance As of March 31, 2023
Category Standard Comment
Treasury Issues No Limitation Complies
Agency Issues 25% per Agency/GSE issuer; 20% max agency callable securities; Issued by Federal Agencies or U.S. Government Sponsored Enterprise obligations. Complies
Supranational "AA" rating category or better by a NRSRO; 30% maximum; 10% max per issuer; USD denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, or IADB. Complies Municipal Securities
"A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Obligations of the City, State of California, and any local agency within the State of California; Obligations of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states in addition to California.
Complies
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S. Complies Asset Backed/ Mortgage Backed/
Collateralized Mortgage Obligation
"AA" rating category or better by a NRSRO; 20% maximum; 5% max per issuer on Asset-Backed or Commercial Mortgage security; There is no issuer limitation on any Mortgage security where the issuer is the U.S. Treasury or a Federal Agency/GSE .
Complies
Negotiable Certificates of Deposit
(NCDs)
No rating required if amount of the NCD is insured up to the FDIC limit; If above FDIC insured limit, requires "A-1" shortterm rated or "A" long-term rating category or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by nationally or state chartered banks, state or federal savings associations, or state or federal credit unions, or by a federally licensed or state-licensed branch of a foreign bank.
Complies
Certificates of Deposit (CDs)/Time
Deposit (TDs)
30% maximum; 5% max per issuer; Certificates of Deposit, Time Deposit, non-negotiable, and collateralized in accordance with California Government Code. Complies
Banker’s Acceptances "A-1" short-term rated or better by a NRSRO; or "A" long-term rating category or better by a NRSRO; 40% maximum; 5% max per issuer; 180 days max maturity Complies
Commercial Paper
"A-1" short term rated or better a NRSRO; "A" long-term issuer rating category or better by a NRSRO; 25% maximum; 5% max per issuer; 270 days max maturity; Issued by corporations organized and operating in the U.S. with assets > $500 million; 10% max outstanding paper of the issuing corporation.
Complies
Money Market Funds
20% maximum; Daily money market funds administered for or by trustees, paying agents and custodian banks contracted by a City of Cupertino as allowed under California Government Code; Only funds holding U.S. Treasury obligations, Government agency obligations or repurchase agreements collateralized by U.S. Treasury or Government agency obligations can be utilized.
Complies
Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 15 1014
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Compliance As of March 31, 2023
Category Standard Comment
Repurchase Agreements 1 year max maturity; 102% collateralized; A PSA Master Repurchase Agreement is required between City of Cupertino and the broke/dealer or financial institution for all repurchase agreements; Not used by investment adviser Complies Prohibited Securities
Reverse Repurchase Agreement; Common stocks; Long-term (> 5 years maturity) notes and bonds; Special circumstances arise that necessitate purchase of securities beyond the 5-year limitation. On such occasions, request must be approved by City Council prior to purchase; Futures/Options; Inverse floaters; Ranges notes, Mortgage-derived, Interest-only strips; Zero interest accrual securities; Purchasing/selling securities on margin; Foreign currency denominated securities.
Complies
Minimum Budgeted Operating
Expenditures in Short Term Investments
Minimum 6 months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements Complies
Max Per Issuer 5% per issuer, unless otherwise specified in the policy Complies Maximum maturity 5 years Complies
City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 16 1015
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Portfolio Summary As of March 31, 2023
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Portfolio Characteristics
City of Cupertino
03/31/23 12/31/22
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.62 2.69 2.67
Average Modified Duration 2.50 2.31 2.28
Average Purchase Yield n/a 1.88% 1.70%
Average Market Yield 4.02% 4.41% 4.63%
Average Quality** AAA AA/Aa1 AA/Aa1
Total Market Value 149,670,106 147,282,846
*ICE BofA 1-5 Yr US Treasury & Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
As of March 31, 2023
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City of Cupertino
Sector Distribution
ABS
12.2%
Agency
15.5%
CMO
3.8%
Corporate
27.1%
Money Market
Fund
0.5%
Municipal Bonds
0.5%
Supranational
6.3%
US Treasury
34.1%
March 31, 2023 December 31, 2022
ABS
13.4%
Agency
17.2%
CMO
3.9%
Corporate
27.2%
Money Market
Fund
0.5%
Municipal Bonds
0.5%
Supranational
6.3%
US Treasury
31.0%
As of March 31, 2023
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Duration Allocation As of March 31, 2023
City of Cupertino
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 03/31/23 1.3% 1.5% 6.1% 36.9% 30.8% 10.2% 13.2% 0.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years ABS
Agency
CMO
Corporate
Money Market Fund
Municipal Bonds
Supranational
US Treasury
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Portfolio Allocation & Duration Changes
City of Cupertino
As of March 31, 2023
Benchmark: ICE BofA 1-5 Yr US Treasury & Agency Index
92.2% 92.5%
95.6% 96.2%
98.6% 100.8% 99.3%
96.2%
80.0%
85.0%
90.0%
95.0%
100.0%
105.0%
110.0%
06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 Duration as a % of the Benchmark
0.5%
0.5%
3.9%
6.3%
13.4%
17.2%
27.2%
31.0%
0.5%
0.5%
3.8%
6.3%
12.2%
15.5%
27.1%
34.1%
Money Market
Fund
Municipal Bonds
CMO
Supranational
ABS
Agency
Corporate
US Treasury
Portfolio Allocation
03/31/23
12/31/22
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Issue Name Investment Type % Portfolio
Government of United States US Treasury 34.06%
Federal National Mortgage Association Agency 8.85%
Federal Home Loan Mortgage Corp Agency 4.36%
Federal Home Loan Mortgage Corp CMO 3.83%
Inter-American Dev Bank Supranational 3.33%
Federal Home Loan Bank Agency 2.30%
American Express ABS ABS 1.88%
John Deere ABS ABS 1.86%
Hyundai Auto Receivables ABS 1.75%
Royal Bank of Canada Corporate 1.67%
Toyota Motor Corp Corporate 1.61%
Bank of New York Corporate 1.55%
Bank of America Corp Corporate 1.55%
International Finance Corp Supranational 1.54%
JP Morgan Chase & Co Corporate 1.54%
Intl Bank Recon and Development Supranational 1.47%
Toronto Dominion Holdings Corporate 1.42%
Northwestern Mutual Glbl Corporate 1.29%
Paccar Financial Corporate 1.25%
GM Financial Automobile Leasing Trust ABS 1.19%
Bank of Montreal Chicago Corporate 1.16%
Amazon.com Inc Corporate 1.14%
Metlife Inc Corporate 1.13%
Salesforce.com Inc Corporate 1.12%
Prudential Financial Inc Corporate 1.11%
Air Products & Chemicals Corporate 1.11%
United Health Group Inc Corporate 1.08%
New York Life Global Funding Corporate 1.06%
Honda ABS ABS 1.03%
Berkshire Hathaway Corporate 1.02%
Toyota Lease Owner Trust ABS 0.97%
Guardian Life Global Funding Corporate 0.85%
US Bancorp Corporate 0.81%
Toyota ABS ABS 0.76%
Caterpillar Inc Corporate 0.71%
Hyundai Auto Lease Securitization ABS 0.71%
GM Financial Securitized Term Auto Trust ABS 0.66%
MasterCard Inc Corporate 0.65%
Issuers
City of Cupertino – Account #10659
As of March 31, 2023
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Issue Name Investment Type % Portfolio
Mass Mutual Insurance Corporate 0.60%
Charles Schwab Corp/The Corporate 0.58%
State of California Municipal Bonds 0.50%
BMW Vehicle Lease Trust ABS 0.49%
Wells Fargo 100% Treasury MMKT Fund Money Market Fund 0.48% Northern Trust Corp Corporate 0.45%
Morgan Stanley Corporate 0.41%
Verizon Master Trust ABS 0.38%
BMW ABS ABS 0.35%
Wal-Mart Stores Corporate 0.21%
Verizon Owner Trust ABS 0.17%
Nissan ABS ABS 0.02%
TOTAL 100.00%
Issuers
City of Cupertino – Account #10659
As of March 31, 2023
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AAA AA A <A NR
03/31/23 15.3% 58.5% 18.7% 0.0% 7.6%
12/31/22 16.0% 57.1% 18.8% 0.0% 8.0%
Source: S&P Ratings
March 31, 2023 vs. December 31, 2022
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
AAA AA A <A NR
03/31/23 12/31/22
Quality Distribution
City of Cupertino
As of March 31, 2023
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0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ City of Cupertino ICE BofA 1-5 Yr US Treasury & Agency Index Portfolio Compared to the Benchmark
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 1.3% 1.5% 6.1% 36.9% 30.8% 10.2% 13.2% 0.0%
Benchmark* 0.0% 0.0% 1.7% 35.8% 27.9% 20.2% 14.4% 0.0%
*ICE BofA 1-5 Yr US Treasury & Agency Index
Duration Distribution
City of Cupertino
As of March 31, 2023
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Total Rate of Return Annualized Since Inception January 31, 2019 Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Investment Performance
City of Cupertino
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
12 months 2 years 3 years 5 years 10 years Since Inception City of Cupertino ICE BofA 1-5 Yr US Treasury & Agency Index Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
City of Cupertino 1.64% -0.26% -1.95% -0.71% N/A N/A 0.86% ICE BofA 1-5 Yr US Treasury & Agency Index 1.81% -0.38% -2.06% -1.40% N/A N/A 0.78% As of March 31, 2023
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Purchase Yield as of 03/31/23 = 1.88%
0.00 0.50
1.00 1.50
2.00 2.50
Percent (%)
Historical Average Purchase Yield
City of Cupertino
As of March 31, 2023
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SECTION | Section 3 | Portfolio Holdings
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Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
ABS
89238EAC0 Toyota Lease Owner Trust 2021-A A3
0.390% Due 04/22/2024
332,089.16 03/23/2022
2.16%
325,447.37
329,989.18
99.05 5.58%
328,936.97
39.57 0.22%
(1,052.21)
Aaa / AAA
NR
1.06 0.18
44891VAC5 Hyundai Auto Lease Trust 2021-B A3
0.330% Due 06/17/2024
541,121.52 06/08/2021
0.34%
541,040.35
541,105.01
98.80 5.96%
534,628.60
79.36 0.36%
(6,476.41)
Aaa / AAA
NR
1.22 0.21
65479JAD5 Nissan Auto Receivables Owner 2019-C A3
1.930% Due 07/15/2024
33,753.24 Various
1.70%
33,920.69
33,804.32
99.86 6.61%
33,706.05
28.96 0.02%
(98.27)
Aaa / AAA
NR
1.29 0.03
43813DAC2 Honda Auto Receivables 2020-2 A3
0.820% Due 07/15/2024
34,769.09 05/18/2020
0.83%
34,766.36
34,768.24
99.00 5.34%
34,421.72
12.67 0.02%
(346.52)
Aaa / AAA
NR
1.29 0.22
47789KAC7 John Deere Owner Trust 2020-A A3
1.100% Due 08/15/2024
29,181.72 03/04/2020
1.11%
29,179.94
29,181.17
99.57 5.28%
29,054.98
14.27 0.02%
(126.19)
Aaa / NR
AAA
1.38 0.10
43813KAC6 Honda Auto Receivables Trust 2020-3 A3
0.370% Due 10/18/2024
206,120.78 09/22/2020
0.38%
206,090.50
206,114.67
98.22 5.37%
202,451.00
27.54 0.14%
(3,663.67)
NR / AAA
AAA
1.55 0.35
36262XAC8 GM Financial Auto Lease Trust 2021-3 A2
0.390% Due 10/21/2024
879,250.27 08/10/2021
0.39%
879,238.32
879,246.30
97.98 5.51%
861,501.72
104.78
0.58%
(17,744.58)
NR / AAA
AAA
1.56 0.39
47787NAC3 John Deere Owner Trust 2020-B A3
0.510% Due 11/15/2024
59,352.21 07/14/2020
0.52%
59,343.16
59,350.15
99.01 4.91%
58,761.71
13.45 0.04%
(588.44)
Aaa / NR
AAA
1.63 0.22
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3
0.330% Due 12/26/2024
303,787.63 09/08/2021
0.34%
303,756.27
303,777.52
98.01 5.83%
297,734.66
16.71 0.20%
(6,042.86)
Aaa / NR
AAA
1.74 0.36
89236XAC0 Toyota Auto Receivables 2020-D A3
0.350% Due 01/15/2025
151,883.81 10/06/2020
0.36%
151,855.52
151,871.89
98.39 5.80%
149,444.25
23.63 0.10%
(2,427.64)
NR / AAA
AAA
1.80 0.29
44891WAC3 Hyundai Auto Lease Trust 2022-A A3
1.160% Due 01/15/2025
540,000.00 01/11/2022
1.16%
539,988.07
539,994.45
97.25 5.60%
525,140.82
278.40
0.35%
(14,853.63)
Aaa / AAA
NR
1.80 0.62
92290BAA9 Verizon Owner Trust 2020-B A
0.470% Due 02/20/2025
263,143.40 08/04/2020
0.48%
263,088.13
263,120.30
98.86 5.33%
260,140.41
37.79 0.17%
(2,979.89)
Aaa / NR
AAA
1.90 0.23
89238LAC4 Toyota Lease Owner Trust 2022-A A3
1.960% Due 02/20/2025
1,150,000.00 02/23/2022
1.98%
1,149,818.99
1,149,904.23
97.04 5.54%
1,115,918.60
688.72
0.75%
(33,985.63)
NR / AAA
AAA
1.90 0.83
36265MAC9 GM Financial Auto Lease Trust 2022-1 A3
1.900% Due 03/20/2025
945,000.00 02/15/2022
1.91%
944,991.87
944,996.02
97.34 5.41%
919,870.56
548.63
0.61%
(25,125.46)
Aaa / NR
AAA
1.97 0.76
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
450,000.00 01/11/2022
1.11%
449,932.73
449,969.66
97.50 5.66%
438,764.85
82.50 0.29%
(11,204.81)
NR / AAA
AAA
1.99 0.55
43813GAC5 Honda Auto Receivables Trust 2021-1 A3
0.270% Due 04/21/2025
162,041.83 02/17/2021
0.27%
162,038.87
162,040.89
97.27 5.87%
157,620.03
12.15 0.11%
(4,420.86)
Aaa / NR
AAA
2.06 0.48
89240BAC2 Toyota Auto Receivables Owners 2021-A A3
0.260% Due 05/15/2025
590,848.46 02/02/2021
0.27%
590,738.80
590,814.62
97.46 5.57%
575,832.05
68.28 0.38%
(14,982.57)
Aaa / NR
AAA
2.13 0.48
As of March 31, 2023
29 1028
CC 05-16-2023
1028 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
44933LAC7 Hyundai Auto Receivables Trust 2021-A A3
0.380% Due 09/15/2025
392,283.30 04/20/2021
0.38%
392,242.03
392,268.10
97.24 5.26%
381,457.85
66.25 0.25%
(10,810.25)
NR / AAA
AAA
2.46 0.56
43815GAC3 Honda Auto Receivables Trust 2021-4 A3
0.880% Due 01/21/2026
460,000.00 11/16/2021
0.89%
459,903.03
459,943.37
95.51 5.26%
439,345.08
112.44
0.29%
(20,598.29)
Aaa / NR
AAA
2.81 1.03
47789QAC4 John Deere Owner Trust 2021-B A3
0.520% Due 03/16/2026
580,000.00 07/13/2021
0.52%
579,948.26
579,972.29
95.67 5.59%
554,865.70
134.04
0.37%
(25,106.59)
Aaa / NR
AAA
2.96 0.86
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
430,000.00 11/09/2021
0.71%
429,990.84
429,994.71
95.33 5.42%
409,919.43
135.69
0.27%
(20,075.28)
NR / AAA
AAA
3.04 1.00
43815BAC4 Honda Auto Receivables Trust 2022-1 A3
1.880% Due 05/15/2026
740,000.00 02/15/2022
1.89%
739,888.70
739,926.71
95.88 4.95%
709,483.88
618.31
0.47%
(30,442.83)
Aaa / AAA
NR
3.13 1.36
44935FAD6 Hyundai Auto Receivables Trust 2021-C A3
0.740% Due 05/15/2026
1,330,000.00 Various
2.03%
1,296,371.65
1,308,620.05
95.40 5.49%
1,268,845.28
437.42
0.85%
(39,774.77)
NR / AAA
AAA
3.13 0.97
05602RAD3 BMW Vehicle Owner Trust 2022-A A3
3.210% Due 08/25/2026
530,000.00 05/10/2022
3.23%
529,972.44
529,980.17
97.71 4.90%
517,885.79
283.55
0.35%
(12,094.38)
Aaa / AAA
NR
3.41 1.38
362554AC1 GM Financial Securitized Term 2021-4 A3
0.680% Due 09/16/2026
350,000.00 10/13/2021
0.68%
349,991.08
349,994.86
94.86 5.77%
332,024.70
99.17 0.22%
(17,970.16)
Aaa / AAA
NR
3.47 1.02
47787JAC2 John Deere Owner Trust 2022-A A3
2.320% Due 09/16/2026
450,000.00 03/10/2022
2.34%
449,900.46
449,930.11
96.65 5.05%
434,938.95
464.00
0.29%
(14,991.16)
Aaa / NR
AAA
3.47 1.24
448977AD0 Hyundai Auto Receivables Trust 2022-A A3
2.220% Due 10/15/2026
1,010,000.00 03/09/2022
2.23%
1,009,961.12
1,009,973.60
96.14 5.00%
970,973.60
996.53
0.65%
(39,000.00)
NR / AAA
AAA
3.55 1.41
380146AC4 GM Financial Auto Receivables 2022-1 A3
1.260% Due 11/16/2026
295,000.00 01/11/2022
1.27%
294,974.36
294,983.60
95.01 5.68%
280,288.35
154.88
0.19%
(14,695.25)
NR / AAA
AAA
3.63 1.14
362585AC5 GM Financial Securitized ART 2022-2 A3
3.100% Due 02/16/2027
390,000.00 04/05/2022
3.13%
389,918.49
389,941.47
96.84 5.16%
377,662.35
503.75
0.25%
(12,279.12)
Aaa / AAA
NR
3.88 1.56
47800AAC4 John Deere Owner Trust 2022-B A3
3.740% Due 02/16/2027
655,000.00 07/12/2022
3.77%
654,937.45
654,949.66
98.07 4.89%
642,376.84
1,088.76
0.43%
(12,572.82)
Aaa / NR
AAA
3.88 1.72
02589BAA8 American Express Credit Accoun 22-1 A
2.210% Due 03/15/2027
1,545,000.00 03/21/2022
2.69%
1,524,359.77
1,531,454.85
95.46 4.70%
1,474,798.29
1,517.53
0.99%
(56,656.56)
Aaa / NR
AAA
3.96 1.86
02582JJT8 American Express Credit Trust 2022-2 A
3.390% Due 05/17/2027
1,375,000.00 05/17/2022
3.42%
1,374,695.85
1,374,783.15
97.66 4.60%
1,342,783.75
2,071.67
0.90%
(31,999.40)
NR / AAA
AAA
4.13 1.99
47800BAC2 John Deere Owner Trust 2022-C A3
5.090% Due 06/15/2027
1,050,000.00 10/12/2022
5.15%
1,049,918.52
1,049,928.53
100.81
4.74%
1,058,522.85
2,375.33
0.71%
8,594.32
Aaa / NR
AAA
4.21 1.98
As of March 31, 2023
30 1029
CC 05-16-2023
1029 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
92348KAV5 Verizon Master Trust 2022-5 A1A
3.720% Due 07/20/2027
570,000.00 08/02/2022
3.75%
569,974.92
569,980.69
98.64 5.10%
562,220.64
647.90
0.38%
(7,760.05)
NR / AAA
AAA
4.31 1.32
TOTAL ABS 18,824,626.42 2.03%
18,762,184.91
18,786,674.54 5.23%
18,282,322.31
13,784.63
12.22%
(504,352.23)
Aaa / AAA
AAA
2.94 1.11
Agency
3137EAFA2 FHLMC Note
0.250% Due 12/04/2023
855,000.00 12/02/2020
0.28%
854,153.55
854,809.07
96.98 4.85%
829,173.87
694.69
0.55%
(25,635.20)
Aaa / AA+
AAA
0.68 0.66
3130A1XJ2 FHLB Note
2.875% Due 06/14/2024
1,500,000.00 06/18/2019
1.96%
1,564,890.20
1,515,670.52
98.11 4.50%
1,471,660.50
12,817.70
0.99%
(44,010.02)
Aaa / AA+
NR
1.21 1.16
3135G0V75 FNMA Note
1.750% Due 07/02/2024
1,500,000.00 07/16/2019
1.96%
1,484,895.00
1,496,182.07
96.48 4.67%
1,447,206.00
6,489.58
0.97%
(48,976.07)
Aaa / AA+
AAA
1.26 1.21
3130A2UW4 FHLB Note
2.875% Due 09/13/2024
2,000,000.00 09/13/2019
1.79%
2,103,380.00
2,030,095.82
98.07 4.26%
1,961,428.00
2,875.00
1.31%
(68,667.82)
Aaa / AA+
AAA
1.46 1.40
3135G0W66 FNMA Note
1.625% Due 10/15/2024
1,975,000.00 Various
1.73%
1,965,802.75
1,972,084.20
96.09 4.28%
1,897,771.58
14,798.79
1.28%
(74,312.62)
Aaa / AA+
AAA
1.55 1.48
3135G0X24 FNMA Note
1.625% Due 01/07/2025
1,295,000.00 Various
1.38%
1,309,953.95
1,300,500.90
95.59 4.24%
1,237,934.53
4,910.21
0.83%
(62,566.37)
Aaa / AA+
AAA
1.78 1.71
3137EAEP0 FHLMC Note
1.500% Due 02/12/2025
2,365,000.00 02/13/2020
1.52%
2,363,178.95
2,364,318.48
95.19 4.21%
2,251,236.41
4,828.54
1.51%
(113,082.07)
Aaa / AA+
AAA
1.87 1.80
3135G03U5 FNMA Note
0.625% Due 04/22/2025
1,860,000.00 04/22/2020
0.67%
1,856,168.40
1,858,420.31
92.98 4.22%
1,729,349.88
5,134.38
1.16%
(129,070.43)
Aaa / AA+
AAA
2.06 2.00
3135G04Z3 FNMA Note
0.500% Due 06/17/2025
2,500,000.00 Various
0.50%
2,499,227.30
2,499,751.23
92.41 4.13%
2,310,277.50
3,611.11
1.55%
(189,473.73)
Aaa / AA+
AAA
2.22 2.15
3137EAEU9 FHLMC Note
0.375% Due 07/21/2025
1,250,000.00 07/21/2020
0.48%
1,243,775.00
1,247,126.40
92.00 4.04%
1,150,037.50
911.46
0.77%
(97,088.90)
Aaa / AA+
AAA
2.31 2.25
3135G05X7 FNMA Note
0.375% Due 08/25/2025
2,500,000.00 Various
0.48%
2,487,983.75
2,494,055.94
91.55 4.11%
2,288,837.51
937.51
1.53%
(205,218.43)
Aaa / AA+
AAA
2.41 2.34
3137EAEX3 FHLMC Note
0.375% Due 09/23/2025
2,500,000.00 Various
0.46%
2,489,362.80
2,494,605.84
91.36 4.08%
2,284,012.50
208.33
1.53%
(210,593.34)
Aaa / AA+
AAA
2.48 2.42
3135G06G3 FNMA Note
0.500% Due 11/07/2025
2,500,000.00 Various
0.56%
2,492,700.00
2,496,186.54
91.49 3.98%
2,287,272.50
5,000.00
1.53%
(208,914.04)
Aaa / AA+
AAA
2.61 2.53
TOTAL Agency 24,600,000.00 1.03%
24,715,471.65
24,623,807.32 4.23%
23,146,198.28
63,217.30
15.51%
(1,477,609.04)
Aaa / AA+
AAA
1.94 1.88
As of March 31, 2023
31 1030
CC 05-16-2023
1030 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
CMO
3137BFE98 FHLMC K041 A2
3.171% Due 10/25/2024
1,300,000.00 07/01/2021
0.72%
1,398,414.06
1,345,710.08
97.50 4.85%
1,267,458.40
3,435.25
0.85%
(78,251.68)
Aaa / AAA
AAA
1.57 1.40
3137BLMZ8 FHLMC K049 A2
3.010% Due 07/25/2025
1,000,000.00 07/01/2021
0.87%
1,079,687.50
1,045,019.33
96.78 4.50%
967,814.00
2,508.33
0.65%
(77,205.33)
NR / NR
AAA
2.32 2.08
3137BLW95 FHLMC K050 A2
3.334% Due 08/25/2025
950,000.00 11/16/2021
1.17%
1,018,132.81
993,017.98
97.39 4.50%
925,178.40
2,639.42
0.62%
(67,839.58)
NR / NR
AAA
2.41 2.12
3137BM7C4 FHLMC K051 A2
3.308% Due 09/25/2025
440,000.00 03/15/2022
2.21%
453,079.69
449,154.75
97.29 4.48%
428,072.48
1,212.93
0.29%
(21,082.27)
NR / NR
AAA
2.49 2.20
3137BN6G4 FHLMC KO53
2.995% Due 12/25/2025
570,000.00 03/15/2022
2.29%
582,001.17
578,700.41
96.45 4.42%
549,750.18
1,422.63
0.37%
(28,950.23)
NR / NR
AAA
2.74 2.42
3137BSP72 FHLMC K058 A2
2.653% Due 08/25/2026
650,000.00 11/12/2021
1.35%
687,451.17
676,551.53
94.81 4.30%
616,276.70
1,437.04
0.41%
(60,274.83)
NR / NR
AAA
3.41 3.14
3137FBBX3 FHLMC K068 A2
3.244% Due 08/25/2027
1,000,000.00 09/28/2022
4.41%
950,664.06
955,701.20
96.10 4.22%
961,006.00
2,703.33
0.64%
5,304.80
Aaa / NR
NR
4.41 3.95
TOTAL CMO 5,910,000.00 1.74%
6,169,430.46
6,043,855.28 4.50%
5,715,556.16
15,358.93
3.83%
(328,299.12)
Aaa / AAA
AAA
2.69 2.40
Corporate
89114QCA4 Toronto Dominion Bank Note
2.650% Due 06/12/2024
1,500,000.00 09/11/2019
2.24%
1,527,255.00
1,506,884.48
97.21 5.08%
1,458,156.00
12,035.42
0.98%
(48,728.48)
A1 / A
AA1.201.15
06367TQW3 Bank of Montreal Note
0.625% Due 07/09/2024
600,000.00 02/09/2022
1.89%
582,216.00
590,592.08
94.55 5.10%
567,309.60
854.17
0.38%
(23,282.48)
A2 / AAA1.28
1.24 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022
0.625% Due 07/15/2024
1,760,000.00 Various
0.87%
1,748,937.40
1,754,558.20
94.98 4.68%
1,671,626.88
2,322.23
1.12%
(82,931.32)
A2 / A+
NR
1.29 1.25
78013XZU5 Royal Bank of Canada Note
2.550% Due 07/16/2024
1,500,000.00 Various
1.98%
1,533,359.18
1,510,478.41
96.74 5.18%
1,451,172.00
7,968.76
0.97%
(59,306.41)
A1 / A
AA1.301.24
91159HHX1 US Bancorp Callable Note Cont 6/28/2024
2.400% Due 07/30/2024
1,250,000.00 10/10/2019
2.07%
1,268,262.50
1,254,826.06
96.13 5.45%
1,201,583.75
5,083.33
0.81%
(53,242.31)
A2 / A+
A+
1.33 1.28
009158AV8 Air Products & Chemicals Callable Note Cont 4/30/2024
3.350% Due 07/31/2024
1,675,000.00 08/07/2019
2.07%
1,771,212.00
1,697,018.39
98.38 4.61%
1,647,880.08
9,507.95
1.11%
(49,138.31)
A2 / A
NR
1.34 1.28
69371RR40 Paccar Financial Corp Note
0.500% Due 08/09/2024
680,000.00 08/03/2021
0.52%
679,632.80
679,833.82
94.35 4.85%
641,605.84
491.11
0.43%
(38,227.98)
A1 / A+
NR
1.36 1.32
As of March 31, 2023
32 1031
CC 05-16-2023
1031 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
69371RQ25 Paccar Financial Corp Note
2.150% Due 08/15/2024
370,000.00 08/08/2019
2.20%
369,182.30
369,775.32
96.45 4.85%
356,872.40
1,016.47
0.24%
(12,902.92)
A1 / A+
NR
1.38 1.32
14913Q3B3 Caterpillar Finl Service Note
2.150% Due 11/08/2024
1,100,000.00 01/28/2020
1.92%
1,111,517.00
1,103,876.42
96.35 4.54%
1,059,841.20
9,394.31
0.71%
(44,035.22)
A2 / A
A
1.61 1.54
74153WCQ0 Pricoa Global Funding Note
1.150% Due 12/06/2024
885,000.00 12/01/2021
1.19%
884,088.45
884,487.57
94.30 4.72%
834,537.30
3,251.15
0.56%
(49,950.27)
Aa3 / AAAA1.69
1.62 89114TZL9 Toronto-Dominion Bank Note
1.450% Due 01/10/2025
700,000.00 03/15/2022
2.79%
674,737.00
684,057.33
94.09 4.97%
658,662.20
2,283.75
0.44%
(25,395.13)
A1 / A
NR
1.78 1.71
89236TJT3 Toyota Motor Credit Corp Note
1.450% Due 01/13/2025
1,215,000.00 01/10/2022
1.50%
1,213,371.90
1,214,029.97
94.67 4.60%
1,150,210.13
3,817.13
0.77%
(63,819.84)
A1 / A+
A+
1.79 1.72
64952WEK5 New York Life Global Note
1.450% Due 01/14/2025
1,680,000.00 01/11/2022
1.49%
1,678,185.60
1,678,917.32
94.47 4.71%
1,587,114.48
5,210.33
1.06%
(91,802.84)
Aaa / AA+
AAA
1.79 1.72
69371RR73 Paccar Financial Corp Note
2.850% Due 04/07/2025
885,000.00 03/31/2022
2.86%
884,769.90
884,845.27
96.54 4.67%
854,389.62
12,190.88
0.58%
(30,455.65)
A1 / A+
NR
2.02 1.90
78016EZ59 Royal Bank of Canada Note
3.375% Due 04/14/2025
1,050,000.00 04/07/2022
3.39%
1,049,611.50
1,049,736.27
97.04 4.92%
1,018,959.90
16,439.06
0.69%
(30,776.37)
A1 / A
AA2.041.91
06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/2025
3.350% Due 04/25/2025
1,370,000.00 04/19/2022
3.35%
1,369,808.20
1,369,867.75
96.30 5.26%
1,319,346.99
19,887.83
0.89%
(50,520.76)
A1 / A
AA2.071.93
06367WB85 Bank of Montreal Note
1.850% Due 05/01/2025
1,240,000.00 07/23/2021
0.85%
1,285,656.80
1,265,287.35
93.66 5.10%
1,161,369.12
9,558.33
0.78%
(103,918.23)
A2 / AAA2.09
1.99 46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024
0.824% Due 06/01/2025
1,370,000.00 05/24/2021
0.78%
1,371,773.90
1,370,691.11
94.76 5.37%
1,298,227.08
3,762.93
0.87%
(72,464.03)
A1 / AAA2.17
2.08 46647PCK0 JP Morgan Chase & Co Callable Note Cont 6/23/2024
0.969% Due 06/23/2025
655,000.00 Various
0.95%
655,406.85
655,166.83
94.73 5.36%
620,483.47
1,727.78
0.42%
(34,683.36)
A1 / AAA2.23
2.13 66815L2J7 Northwestern Mutual Glbl Note
4.000% Due 07/01/2025
1,170,000.00 06/27/2022
4.01%
1,169,602.20
1,169,701.65
98.53 4.69%
1,152,855.99
11,700.00
0.78%
(16,845.66)
Aaa / AA+
AAA
2.25 2.10
74153WCM9 Pricoa Global Funding Note
0.800% Due 09/01/2025
904,000.00 04/06/2022
3.26%
832,972.72
853,445.96
90.72 4.92%
820,140.44
602.67
0.55%
(33,305.52)
Aa3 / AAAA2.42
2.34 06406HCQ0 Bank of New York Callable Note Cont 10/18/2025
3.950% Due 11/18/2025
1,000,000.00 04/05/2022
3.20%
1,024,910.00
1,017,977.68
96.71 5.30%
967,124.00
14,593.06
0.66%
(50,853.68)
A1 / A
AA2.642.42
40139LBC6 Guardian Life Glob Fun Note
0.875% Due 12/10/2025
1,400,000.00 Various
1.12%
1,385,860.00
1,390,889.78
90.19 4.80%
1,262,657.20
3,777.08
0.85%
(128,232.58)
Aa1 / AA+
NR
2.70 2.59
As of March 31, 2023
33 1032
CC 05-16-2023
1032 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
66815L2A6 Northwestern Mutual Glbl Note
0.800% Due 01/14/2026
850,000.00 12/06/2021
1.47%
827,449.50
834,660.24
89.92 4.70%
764,347.20
1,454.44
0.51%
(70,313.04)
Aaa / AA+
AAA
2.79 2.69
06051GHY8 Bank of America Corp Callable Note Cont 2/13/2025
2.015% Due 02/13/2026
600,000.00 05/24/2021
1.05%
620,988.00
610,563.50
93.69 5.61%
562,140.60
1,612.00
0.38%
(48,422.90)
A2 / AAA2.88
1.79 46647PBK1 JP Morgan Chase & Co Callable Note Cont 4/22/2025
2.083% Due 04/22/2026
401,000.00 05/20/2021
1.11%
415,969.33
408,877.49
93.57 5.42%
375,228.53
3,689.17
0.25%
(33,648.96)
A1 / AAA3.06
1.95 6174468Q5 Morgan Stanley Callable Note Cont 4/28/2025
2.188% Due 04/28/2026
650,000.00 05/23/2022
4.82%
615,699.50
623,138.45
93.83 5.36%
609,868.35
6,044.35
0.41%
(13,270.10)
A1 / AA+3.08
1.97 023135BX3 Amazon.com Inc Callable Note Cont 4/12/2026
1.000% Due 05/12/2026
1,875,000.00 05/10/2021
1.09%
1,866,900.00
1,869,956.35
90.66 4.23%
1,699,951.88
7,239.58
1.14%
(170,004.47)
A1 / AA
AA3.123.00
91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026
1.150% Due 05/15/2026
1,035,000.00 Various
1.37%
1,025,051.35
1,027,947.22
90.93 4.29%
941,073.75
4,496.50
0.63%
(86,873.47)
A3 / A+
A
3.13 2.99
89236TJK2 Toyota Motor Credit Corp Note
1.125% Due 06/18/2026
1,385,000.00 06/15/2021
1.13%
1,384,390.60
1,384,608.20
90.18 4.44%
1,248,936.22
4,457.97
0.84%
(135,671.98)
A1 / A+
A+
3.22 3.08
06051GJD2 Bank of America Corp Callable Note Cont 6/19/2025
1.319% Due 06/19/2026
700,000.00 07/16/2021
1.27%
701,274.00
700,721.64
91.41 5.48%
639,877.00
2,616.02
0.43%
(60,844.64)
A2 / AAA3.22
2.13 57629WDE7 Mass Mutual Global funding Note
1.200% Due 07/16/2026
1,000,000.00 08/19/2021
1.15%
1,002,230.00
1,001,499.14
88.88 4.90%
888,756.00
2,500.00
0.60%
(112,743.14)
Aa3 / AA+
AA+
3.30 3.15
58989V2D5 Met Tower Global Funding Note
1.250% Due 09/14/2026
770,000.00 09/07/2021
1.27%
769,291.60
769,510.40
88.74 4.83%
683,288.76
454.51
0.46%
(86,221.64)
Aa3 / AAAA3.46
3.30 931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026
1.050% Due 09/17/2026
350,000.00 09/08/2021
1.09%
349,338.50
349,541.73
90.15 4.13%
315,512.40
142.92
0.21%
(34,029.33)
Aa2 / AA
AA
3.47 3.33
59217GER6 Metlife Note
1.875% Due 01/11/2027
1,115,000.00 01/03/2022
1.90%
1,113,728.90
1,114,038.67
89.36 5.00%
996,336.13
4,645.83
0.67%
(117,702.54)
Aa3 / AAAA3.79
3.55 808513BY0 Charles Schwab Corp Callable Note Cont 2/3/2027
2.450% Due 03/03/2027
960,000.00 03/01/2022
2.46%
959,729.90
959,787.09
89.57 5.44%
859,878.72
1,829.34
0.58%
(99,908.37)
A2 / A
A
3.93 3.65
084664CZ2 Berkshire Hathaway Callable Note Cont 2/15/2027
2.300% Due 03/15/2027
1,615,000.00 03/07/2022
2.30%
1,614,693.15
1,614,757.34
94.68 3.76%
1,529,046.47
1,650.89
1.02%
(85,710.87)
Aa2 / AA
A+
3.96 3.72
As of March 31, 2023
34 1033
CC 05-16-2023
1033 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
06051GHT9 Bank of America Corp Callable Note 1X 4/23/2026
3.559% Due 04/23/2027
1,150,000.00 Various
4.85%
1,114,222.54
1,119,155.62
94.98 5.35%
1,092,272.30
17,963.07
0.74%
(26,883.32)
A2 / AAA4.07
2.80 665859AW4 Northern Trust Company Callable Note Cont 4/10/2027
4.000% Due 05/10/2027
670,000.00 05/05/2022
4.04%
668,914.60
669,108.38
97.97 4.55%
656,368.18
10,496.67
0.45%
(12,740.20)
A2 / A+
A+
4.11 3.68
91324PEG3 United Health Group Inc Callable Note Cont 4/15/2027
3.700% Due 05/15/2027
675,000.00 05/17/2022
3.69%
675,316.70
675,261.74
97.81 4.28%
660,241.13
9,435.00
0.45%
(15,020.61)
A3 / A+
A
4.13 3.72
57636QAW4 MasterCard Inc Callable Note Cont 2/9/28
4.875% Due 03/09/2028
945,000.00 03/06/2023
4.90%
944,083.35
944,094.89
102.92
4.20%
972,633.69
2,815.31
0.65%
28,538.80
Aa3 / A+
NR
4.95 4.29
TOTAL Corporate 42,705,000.00 2.08%
42,741,600.72
42,634,173.11 4.84%
40,257,882.98
241,019.30
27.06%
(2,376,290.13)
A1 / A+
AA2.482.26
Money Market Fund
94975H270 Wells Fargo 100% Treasury Money Mkt Fund 724,920.33 Various
4.15%
724,920.33
724,920.33
1.00 4.15%
724,920.33
0.00 0.48%
0.00 Aaa / AAA
NR
0.00 0.00
TOTAL Money Market Fund 724,920.33 4.15%
724,920.33
724,920.33 4.15%
724,920.33
0.00 0.48%
0.00 Aaa / AAA
NR
0.00 0.00
Municipal Bonds
13063DRK6 California State Taxable GO
2.400% Due 10/01/2024
755,000.00 10/16/2019
1.91%
772,342.35
760,277.69
96.96 4.52%
732,070.65
9,060.00
0.50%
(28,207.04)
Aa2 / AAAA1.51
1.43 TOTAL Municipal Bonds 755,000.00 1.91%
772,342.35
760,277.69 4.52%
732,070.65
9,060.00
0.50%
(28,207.04)
Aa2 / AAAA1.51
1.43 Supranational
4581X0DP0 Inter-American Dev Bank Note
0.250% Due 11/15/2023
2,800,000.00 07/01/2021
0.37%
2,792,300.00
2,797,963.34
97.17 4.92%
2,720,830.00
2,644.44
1.82%
(77,133.34)
Aaa / AAA
NR
0.63 0.61
45950KCT5 International Finance Corp Note
0.375% Due 07/16/2025
2,500,000.00 05/27/2021
0.66%
2,471,150.00
2,483,965.84
92.19 3.98%
2,304,650.00
1,953.13
1.54%
(179,315.84)
Aaa / AAA
NR
2.30 2.24
459058JL8 Intl. Bank Recon & Development Note
0.500% Due 10/28/2025
2,400,000.00 Various
0.60%
2,388,859.25
2,393,893.71
91.64 3.95%
2,199,264.00
5,100.01
1.47%
(194,629.71)
Aaa / AAA
AAA
2.58 2.51
As of March 31, 2023
35 1034
CC 05-16-2023
1034 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
4581X0DV7 Inter-American Dev Bank Note
0.875% Due 04/20/2026
2,460,000.00 04/13/2021
0.97%
2,448,733.20
2,453,120.22
91.35 3.91%
2,247,180.48
9,626.46
1.51%
(205,939.74)
Aaa / AAA
AAA
3.06 2.95
TOTAL Supranational 10,160,000.00 0.64%
10,101,042.45
10,128,943.11 4.22%
9,471,924.48
19,324.04
6.34%
(657,018.63)
Aaa / AAA
AAA
2.06 2.00
US Treasury
912828X70 US Treasury Note
2.000% Due 04/30/2024
1,700,000.00 06/10/2019
1.92%
1,705,976.56
1,701,322.54
97.25 4.63%
1,653,316.30
14,276.24
1.11%
(48,006.24)
Aaa / AA+
AAA
1.08 1.04
912828XX3 US Treasury Note
2.000% Due 06/30/2024
2,000,000.00 Various
1.80%
2,018,574.22
2,004,797.55
97.03 4.46%
1,940,626.00
10,055.25
1.30%
(64,171.55)
Aaa / AA+
AAA
1.25 1.21
912828D56 US Treasury Note
2.375% Due 08/15/2024
1,700,000.00 09/18/2019
1.71%
1,753,191.41
1,714,900.72
97.34 4.39%
1,654,710.30
5,018.99
1.11%
(60,190.42)
Aaa / AA+
AAA
1.38 1.33
912828YY0 US Treasury Note
1.750% Due 12/31/2024
2,100,000.00 03/15/2022
1.97%
2,087,203.13
2,091,978.46
95.94 4.18%
2,014,687.50
9,238.26
1.35%
(77,290.96)
Aaa / AA+
AAA
1.76 1.69
912828ZC7 US Treasury Note
1.125% Due 02/28/2025
1,500,000.00 03/18/2020
0.81%
1,523,144.53
1,508,952.98
94.55 4.11%
1,418,320.50
1,467.39
0.95%
(90,632.48)
Aaa / AA+
AAA
1.92 1.86
91282CED9 US Treasury Note
1.750% Due 03/15/2025
3,100,000.00 Various
2.23%
3,057,617.20
3,071,931.63
95.65 4.09%
2,965,100.40
2,506.11
1.98%
(106,831.23)
Aaa / AA+
AAA
1.96 1.89
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
2,500,000.00 03/21/2022
2.24%
2,360,839.85
2,406,817.87
92.75 4.04%
2,318,750.00
3,936.46
1.55%
(88,067.87)
Aaa / AA+
AAA
2.08 2.03
91282CAB7 US Treasury Note
0.250% Due 07/31/2025
1,500,000.00 03/12/2021
0.72%
1,469,765.63
1,483,890.13
91.83 3.94%
1,377,480.00
621.55
0.92%
(106,410.13)
Aaa / AA+
AAA
2.34 2.29
91282CAM3 US Treasury Note
0.250% Due 09/30/2025
2,400,000.00 Various
0.56%
2,366,140.63
2,381,498.42
91.51 3.84%
2,196,280.80
16.39 1.47%
(185,217.62)
Aaa / AA+
AAA
2.50 2.45
91282CAT8 US Treasury Note
0.250% Due 10/31/2025
2,450,000.00 Various
0.49%
2,422,492.19
2,435,115.43
91.18 3.87%
2,233,807.10
2,571.82
1.49%
(201,308.33)
Aaa / AA+
AAA
2.59 2.52
91282CAZ4 US Treasury Note
0.375% Due 11/30/2025
2,250,000.00 03/26/2021
0.77%
2,209,658.20
2,226,981.30
91.22 3.87%
2,052,423.00
2,827.95
1.37%
(174,558.30)
Aaa / AA+
AAA
2.67 2.60
91282CBH3 US Treasury Note
0.375% Due 01/31/2026
2,500,000.00 05/27/2021
0.75%
2,456,445.31
2,473,597.04
90.78 3.84%
2,269,432.50
1,553.87
1.52%
(204,164.54)
Aaa / AA+
AAA
2.84 2.77
91282CBW0 US Treasury Note
0.750% Due 04/30/2026
2,500,000.00 05/27/2021
0.80%
2,493,652.34
2,496,028.30
91.16 3.82%
2,279,102.50
7,872.93
1.53%
(216,925.80)
Aaa / AA+
AAA
3.08 2.98
91282CCZ2 US Treasury Note
0.875% Due 09/30/2026
1,400,000.00 10/18/2021
1.19%
1,379,054.68
1,385,186.43
90.56 3.78%
1,267,875.00
33.47 0.85%
(117,311.43)
Aaa / AA+
AAA
3.50 3.39
91282CDG3 US Treasury Note
1.125% Due 10/31/2026
1,400,000.00 11/15/2021
1.25%
1,391,468.75
1,393,826.75
91.21 3.77%
1,276,898.00
6,613.26
0.86%
(116,928.75)
Aaa / AA+
AAA
3.59 3.44
As of March 31, 2023
36 1035
CC 05-16-2023
1035 of 1145
Holdings Report
City of Cupertino - Account #10659
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.
Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
91282CEW7 US Treasury Note
3.250% Due 06/30/2027
3,250,000.00 Various
3.18%
3,260,312.50
3,258,536.10
98.27 3.69%
3,193,885.50
26,552.13
2.15%
(64,650.60)
Aaa / AA+
AAA
4.25 3.90
91282CFB2 US Treasury Note
2.750% Due 07/31/2027
400,000.00 08/22/2022
3.12%
393,218.75
394,049.95
96.30 3.68%
385,218.80
1,823.20
0.26%
(8,831.15)
Aaa / AA+
AAA
4.34 4.02
91282CFH9 US Treasury Note
3.125% Due 08/31/2027
4,500,000.00 Various
3.28%
4,468,902.34
4,472,383.65
97.81 3.67%
4,401,562.50
12,228.26
2.95%
(70,821.15)
Aaa / AA+
AAA
4.42 4.07
91282CFM8 US Treasury Note
4.125% Due 09/30/2027
3,450,000.00 Various
4.31%
3,421,152.34
3,423,620.62
101.88
3.67%
3,514,956.60
388.83
2.35%
91,335.98
Aaa / AA+
AAA
4.50 4.08
91282CFZ9 US Treasury Note
3.875% Due 11/30/2027
850,000.00 12/05/2022
3.81%
852,656.25
852,486.95
101.04
3.63%
858,832.35
11,039.49
0.58%
6,345.40
Aaa / AA+
AAA
4.67 4.19
91282CGC9 US Treasury Note
3.875% Due 12/31/2027
2,750,000.00 Various
3.67%
2,775,107.42
2,774,227.76
101.05
3.63%
2,778,897.00
26,787.81
1.87%
4,669.24
Aaa / AA+
AAA
4.76 4.27
91282CGH8 US Treasury Note
3.500% Due 01/31/2028
3,000,000.00 02/07/2023
3.81%
2,957,929.69
2,959,133.02
99.48 3.62%
2,984,298.00
17,403.31
2.01%
25,164.98
Aaa / AA+
AAA
4.84 4.39
91282CGP0 US Treasury Note
4.000% Due 02/29/2028
3,700,000.00 Various
4.00%
3,699,113.28
3,699,259.15
101.71
3.62%
3,763,303.30
12,869.57
2.52%
64,044.15
Aaa / AA+
AAA
4.92 4.42
TOTAL US Treasury 52,900,000.00 2.29%
52,523,617.20
52,610,522.75 3.87%
50,799,763.95
177,702.54
34.06%
(1,810,758.80)
Aaa / AA+
AAA
3.28 3.06
TOTAL PORTFOLIO 156,579,546.75 1.88%
156,510,610.07
156,313,174.13 4.41%
149,130,639.14
539,466.74
100.00%
(7,182,534.99)
Aa1 / AA
AAA
2.69 2.31
TOTAL MARKET VALUE PLUS ACCRUALS 149,670,105.88
As of March 31, 2023
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SECTION | Section 4 | Transactions
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Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount InterestPur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 01/06/2023 91282CGC9 750,000.00 US Treasury Note
3.875% Due: 12/31/2027
99.660 3.95% 747,451.17 481.70 747,932.87 0.00
Purchase 01/26/2023 91282CGC9 2,000,000.00 US Treasury Note
3.875% Due: 12/31/2027
101.383 3.57% 2,027,656.25 5,566.30 2,033,222.55 0.00
Purchase 02/08/2023 91282CGH8 3,000,000.00 US Treasury Note
3.5% Due: 01/31/2028
98.598 3.81% 2,957,929.69 2,320.44 2,960,250.13 0.00
Purchase 02/28/2023 91282CGP0 2,100,000.00 US Treasury Note 4% Due: 02/29/2028
99.285 4.16% 2,084,988.28 0.00 2,084,988.28 0.00
Purchase 03/09/2023 57636QAW4 945,000.00 MasterCard Inc Callable Note Cont 2/9/28
4.875% Due: 03/09/2028
99.903 4.90% 944,083.35 0.00 944,083.35 0.00
Purchase 03/17/2023 91282CGP0 1,600,000.00 US Treasury Note 4% Due: 02/29/2028
100.883 3.80% 1,614,125.00 2,956.52 1,617,081.52 0.00
Subtotal 10,395,000.00 10,376,233.74 11,324.96 10,387,558.70 0.00 TOTAL ACQUISITIONS 10,395,000.00 10,376,233.74 11,324.96 10,387,558.70 0.00
DISPOSITIONS
Sale 01/26/2023 912828V23 1,500,000.00 US Treasury Note
2.25% Due: 12/31/2023
97.762 1.80% 1,466,425.78 2,424.03 1,468,849.81 -39,625.84 Sale 02/08/2023 3137EAFA2 900,000.00 FHLMC Note
0.25% Due: 12/04/2023
96.198 0.28% 865,782.00 400.00 866,182.00 -33,974.70
Sale 02/08/2023 912828B66 2,000,000.00 US Treasury Note
2.75% Due: 02/15/2024
97.910 1.96% 1,958,203.13 26,453.80 1,984,656.93 -53,653.49 Sale 02/24/2023 3130A0XE5 1,500,000.00 FHLB Note
3.25% Due: 03/08/2024
98.041 2.27% 1,470,615.00 22,479.17 1,493,094.17 -43,641.63 Sale 03/09/2023 24422EVN6 830,000.00 John Deere Capital Corp Note
0.45% Due: 01/17/2024
95.959 0.47% 796,459.70 539.50 796,999.20 -33,363.90
December 31, 2022 through March 31, 2023
As of March 31, 2023
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Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount InterestPur/Sold Total Amount Gain/Loss Sale 03/15/2023 91282CBR1 1,450,000.00 US Treasury Note
0.25% Due: 03/15/2024
95.648 0.33% 1,386,902.34 0.00 1,386,902.34 -61,907.58
Sale 03/16/2023 24422EVN6 200,000.00 John Deere Capital Corp Note
0.45% Due: 01/17/2024
96.120 0.47% 192,240.00 147.50 192,387.50 -7,718.44
Subtotal 8,380,000.00 8,136,627.95 52,444.00 8,189,071.95 -273,885.58 TOTAL DISPOSITIONS 8,380,000.00 8,136,627.95 52,444.00 8,189,071.95 -273,885.58 December 31, 2022 through March 31, 2023
As of March 31, 2023
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Important Disclosures
2023 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.
Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account.
As of March 31, 2023
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Benchmark Disclosures
ICE BofA 1-5 Yr US Treasury & Agency Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.
As of March 31, 2023
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INVESTMENT AND INSURANCE PRODUCTS ARE:
• NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE • SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED
PCS - SAN FRANCISCO CA
510 N VALLEY MILLS DRIVE, SUITE 400
WACO, TX 76710-6075
CITY OF CUPERTINO -
CHANDLER ASSET MANAGEMENT
MONTHLY STATEMENT
MARCH 1, 2023 THROUGH MARCH 31, 2023
ACCOUNT MANAGER: MICHAEL J WADE
TELEPHONE NUMBER: 515-878-6110
PFGEDD INVESTMENT CONTACT: IMR/RYLIE HAY
TELEPHONE NUMBER:
ADMINISTRATOR: BELINDA CONWAY
TELEPHONE NUMBER: 254-265-6137
09123 SE
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Custody and trust services are provided by Principal Bank®, Member FDIC, and/or Principal Trust Company®. These services are provided under the trade name Principal® Custody Solutions. Principal Trust Company is a trade name of Delaware Charter Guarantee & T nk and Principal Trust Company are members of the Principal Financial Group®, Des Moines, IA 50392.
ASSET VALUATION PRACTICES
VALUES REFLECTED FOR PUBLICLY TRADED ASSETS ARE OBTAINED FROM UNAFFILIATED SOURCES. IN SITUATIONS WHERE AN ASSET VALUE CANNOT BE
PROVIDED BY OUR UNAFFILIATED PRICING SOURCES, SUCH AS BUT NOT LIMITED TO NON-PUBLICLY TRADED ASSETS, THE CUSTOMER OR THEIR DESIGNATED REPRESENTATIVE MUST PROVIDE THE UPDATED VALUE. IF PRINCIPAL CUSTODY SOLUTIONS DOES NOT RECEIVE AN UPDATED VALUE, OR IS UNABLE TO USE THE VALUE PROVIDED, THE LAST REPORTED VALUE WILL CONTINUE TO BE REPORTED. VALUES OBTAINED FROM THE CUSTOMER OR THEIR DESIGNATED REPRESENTATIVE SHOULD NOT BE CONSIDERED TO BE CERTIFIED BY PRINCIPAL BANK/PRINCIPAL TRUST COMPANY, AS APPLICABLE.
SPECIAL INVESTMENTS
"SPECIAL INVESTMENTS" ARE ASSETS NOT HELD IN CUSTODY BY PRINCIPAL BANK/PRINCIPAL TRUST COMPANY BUT WHOSE VALUE MAY BE SHOWN ON ACCOUNT STATEMENTS. EXAMPLES OF SPECIAL INVESTMENTS INCLUDE, BUT ARE NOT LIMITED TO, COMMON OR COLLECTIVE FUNDS NOT ADMINISTERED BY PRINCIPAL BANK/PRINCIPAL TRUST COMPANY (OR THEIR AFFILIATES), HEDGE FUNDS, LIMITED PARTNERSHIPS, AND OTHER UNREGISTERED SECURITIES.
AT THE DIRECTION OF AND AS A MATTER OF CONVENIENCE TO ITS CLIENTS, PRINCIPAL BANK/PRINCIPAL TRUST COMPANY MAY BE REPORT SPECIAL INVESTMENTS AS A RECORDKEEPING ITEM ON ACCOUNT STATEMENTS, AT NOMINAL VALUE OR SUCH OTHER VALUE PROVIDED BY CLIENTS/EXTERNAL SOURCES.
NEITHER PRINCIPAL BANK NOR PRINCIPAL TRUST COMPANY IS RESPONSIBLE FOR THE ACCURACY OF INFORMATION PROVIDED BY EXTERNAL SOURCES, AND
DOES NOT CERTIFY THAT INFORMATION PROVIDED BY THESE EXTERNAL SOURCES IS TRUE OR CORRECT FOR THE SPECIAL INVESTMENTS REFLECTED IN YOUR ACCOUNT.
TRADE CONFIRMS
PURSUANT TO FEDERAL REGULATION, MONTHLY OR QUARTERLY ACCOUNT STATEMENTS THAT INCLUDE INVESTMENT TRANSACTION DETAILS MAY BE PROVIDED IN LIEU OF SEPARATE TRADE CONFIRMATIONS. SEPARATE TRADE CONFIRMS MAY BE OBTAINED AT NO ADDITIONAL COST UPON WRITTEN REQUEST TO THE ACCOUNT MANAGER.
UNCLAIMED PROPERTY DESIGNATED REPRESENTATIVE NOTIFICATION
YOUR PROPERTY MAY BE TRANSFERRED TO THE APPROPRIATE STATE IF NO ACTIVITY OCCURS IN THE ACCOUNT WITHIN THE TIME PERIOD SPECIFIED BY STATE LAW. IF YOUR STATE OF RESIDENCE ALLOWS, YOU MAY DESIGNATE A REPRESENTATIVE FOR THE PURPOSE OF RECEIVING NOTICE OF ACCOUNT INACTIVITY BY PROVIDING THE NAME AND MAILING OR EMAIL ADDRESS OF A REPRESENTATIVE. THE DESIGNATED REPRESENTATIVE DOES NOT HAVE ANY RIGHTS TO YOUR ACCOUNT. PLEASE REFER TO YOUR STATE'S UNCLAIMED PROPERTY WEBSITE FOR MORE INFORMATION AND INSTRUCTIONS ON HOW TO DESIGNATE A REPRESENTATIVE FOR NOTICE.
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TABLE OF CONTENTS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ PAGE
REPORT NAME NUMBER
ASSET SUMMARY .................................................................................. 1 STATEMENT OF ASSETS AND LIABILITIES ............................................................ 2 CASH SUMMARY ................................................................................... 20 STATEMENT OF TRANSACTIONS ...................................................................... 21 1044
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PAGE 1
ASSET SUMMARY CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
ASSET SUMMARY
% TOTAL UNREALIZED ESTIMATED CURRENT ACCRUED
INVESTMENT CATEGORY COST VALUE MARKET VALUE MARKET GAIN/LOSS ANNUAL INCOME YIELD INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH 0.00 0.00 0.00
CASH EQUIVALENTS 724,920.33 724,920.33 0.49 0.00 29,214 4.03 1,523.96 BONDS AND NOTES 155,785,689.74 148,410,822.34 99.51 7,374,867.40- 2,853,941 1.92 539,438.77 TOTAL INVESTMENTS 156,510,610.07 149,135,742.67 100.00 7,374,867.40- 2,883,155 1.93 540,962.73 TOTAL ACCRUALS 540,962.73 540,962.73
===================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 157,051,572.80 149,676,705.40 7,374,867.40- 2,883,155 1.93 540,962.73 1045
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PAGE 2
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
CASH EQUIVALENTS
675,492.47 ALLSPRING 100% TREASURY 675,492.47 675,492.47 0.45 0.00 1,506.20 MONEY MARKET FUND - #008 1.0000 1.0000
49,427.86 PRINCIPAL PUBLIC DEPOSIT SWEEP 49,427.86 49,427.86 0.03 0.00 17.76 PROGRAM 1.0000 1.0000
TOTAL CASH EQUIVALENTS 724,920.33 724,920.33 0.49 0.00 1,523.96
BOND & NOTES
1,675,000 AIR PRODUCTS & CHEMICALS 1,771,212.00 1,647,881.75 1.10 123,330.25- 9,507.95 DTD 07/31/14 3.350 07/31/2024 105.7440 98.3810
MOODY'S RATING A2
CUSIP 009158AV8
1,875,000 AMAZON.COM INC 1,866,900.00 1,699,950.00 1.14 166,950.00- 7,239.58 DTD 05/12/21 1.000 05/12/2026 99.5680 90.6640
MOODY'S RATING A1
CUSIP 023135BX3
1,375,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,374,695.85 1,342,783.75 0.90 31,912.10- 2,071.67 ASSET BCKD SEC SER 2022-2 CL A 99.9779 97.6570
DTD 05/24/2022 3.390% 05/17/2027
NON CALLABLE
CUSIP 02582JJT8
1,545,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,524,359.77 1,474,795.20 0.99 49,564.57- 1,517.53 ASSET BCKD SEC SER 2022-1 CL A 98.6641 95.4560
DTD 03/18/2022 2.210% 03/15/2027
NON CALLABLE
MOODY'S RATING AAA
CUSIP 02589BAA8
1,150,000 BANK OF AMERICA CORP 1,114,222.54 1,092,270.00 0.73 21,952.54- 17,963.06 MED TERM NOTE 96.8889 94.9800
DTD 04/23/19 04/23/2027
MOODY'S RATING A2
CUSIP 06051GHT9
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PAGE 3
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 600,000 BANK OF AMERICA CORP 620,988.00 562,140.00 0.38 58,848.00- 1,612.00 MED TERM NOTE 103.4980 93.6900
DTD 02/13/20 02/13/2026
MOODY'S RATING A2
CUSIP 06051GHY8
700,000 BANK OF AMERICA CORP 701,274.00 639,877.00 0.43 61,397.00- 2,616.02 MED TERM NOTE 100.1820 91.4110
DTD 06/19/20 06/19/2026
MOODY'S RATING A2
CUSIP 06051GJD2
600,000 BANK OF MONTREAL 582,216.00 567,312.00 0.38 14,904.00- 854.17 MED TERM NOTE 97.0360 94.5520
DTD 07/09/21 0.625 07/09/2024
MOODY'S RATING A2
CUSIP 06367TQW3
1,240,000 BANK OF MONTREAL 1,285,656.80 1,161,371.60 0.78 124,285.20- 9,558.33 MED TERM NOTE 103.6820 93.6590
DTD 04/27/20 1.850 05/01/2025
MOODY'S RATING A2
CUSIP 06367WB85
1,000,000 BANK OF NEW YORK MELLON 1,024,910.00 967,120.00 0.65 57,790.00- 14,593.06 MED TERM NOTE 102.4910 96.7120
DTD 11/18/13 3.950 11/18/2025
MOODY'S RATING A1
CUSIP 06406HCQ0
1,370,000 BANK OF NY MELLON CORP 1,369,808.20 1,319,351.10 0.88 50,457.10- 19,887.83 DTD 04/26/2022 3.350% 04/25/2025 99.9860 96.3030
CALLABLE
MOODY'S RATING A1
CUSIP 06406RBC0
1,615,000 BERKSHIRE HATHAWAY FIN 1,614,693.15 1,529,049.70 1.03 85,643.45- 1,650.89 DTD 03/15/2022 2.300% 03/15/2027 99.9810 94.6780
CALLABLE
MOODY'S RATING AA2
CUSIP 084664CZ2
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PAGE 4
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 450,000 BMW VEHICLE LEASE TRUST 449,932.73 438,763.50 0.29 11,169.23- 82.50 SER 2022-1 CL A3 *0 DAY DELAY* 99.9851 97.5030
DTD 01/19/22 1.100 03/25/2025
CUSIP 05601XAC3
303,787.63 BMW VEHICLE LEASE TRUST 303,756.27 297,736.18 0.20 6,020.09- 13.92 SER 2021-2 CL A3 *0 DAY DELAY* 99.9897 98.0080
DTD 09/15/21 0.330 12/26/2024
MOODY'S RATING AAA
CUSIP 09690AAC7
530,000 BMW VEHICLE OWNER TRUST 529,972.44 517,884.20 0.35 12,088.24- 283.55 ASSET BCKD SEC SER 2022-A CL A3 99.9948 97.7140
DTD 05/18/2022 3.210% 08/25/2026
CALLABLE
MOODY'S RATING AAA
CUSIP 05602RAD3
755,000 CALIFORNIA ST 772,342.35 732,070.65 0.49 40,271.70- 9,060.00 TXBL-REF 102.2970 96.9630
DTD 10/24/19 2.400 10/01/2024
MOODY'S RATING AA2
CUSIP 13063DRK6
1,100,000 CATERPILLAR FINL SERVICE 1,111,517.00 1,059,839.00 0.71 51,678.00- 9,394.31 MED TERM NOTE 101.0470 96.3490
DTD 11/08/19 2.150 11/08/2024
MOODY'S RATING A2
CUSIP 14913Q3B3
960,000 CHARLES SCHWAB CORP 959,729.90 859,881.60 0.58 99,848.30- 1,829.33 DTD 03/03/2022 2.450% 03/03/2027 99.9719 89.5710
CALLABLE
MOODY'S RATING A2
CUSIP 808513BY0
1,500,000 FED HOME LN BK 1,564,890.20 1,471,665.00 0.99 93,225.20- 12,817.71 DTD 05/08/14 2.875 06/14/2024 104.3260 98.1110
MOODY'S RATING AAA
CUSIP 3130A1XJ2
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PAGE 5
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,000,000 FED HOME LN BK 2,103,380.00 1,961,420.00 1.32 141,960.00- 2,875.00 DTD 08/15/14 2.875 09/13/2024 105.1690 98.0710
MOODY'S RATING AAA
CUSIP 3130A2UW4
1,300,000 FED HOME LN MTG CORP 1,398,414.06 1,267,461.00 0.85 130,953.06- 3,435.25 SER KO41 CL A2 *24 DAY DELAY* 107.5703 97.4970
DTD 12/01/14 3.171 10/25/2024
CUSIP 3137BFE98
2,365,000 FED HOME LN MTG CORP 2,363,178.95 2,251,243.50 1.51 111,935.45- 4,828.54 DTD 02/14/20 1.500 02/12/2025 99.9230 95.1900
MOODY'S RATING AAA
CUSIP 3137EAEP0
1,250,000 FED HOME LN MTG CORP 1,243,775.00 1,150,037.50 0.77 93,737.50- 911.46 SER USD 99.5020 92.0030
DTD 07/23/20 0.375 07/21/2025
MOODY'S RATING AAA
CUSIP 3137EAEU9
2,500,000 FED HOME LN MTG CORP 2,489,362.80 2,284,025.00 1.53 205,337.80- 208.33 DTD 09/25/20 0.375 09/23/2025 99.5745 91.3610
MOODY'S RATING AAA
CUSIP 3137EAEX3
855,000 FED HOME LN MTG CORP 854,153.55 829,170.45 0.56 24,983.10- 694.69 DTD 12/04/20 0.250 12/04/2023 99.9010 96.9790
MOODY'S RATING AAA
CUSIP 3137EAFA2
1,500,000 FED NATL MTG ASSN 1,484,895.00 1,447,200.00 0.97 37,695.00- 6,489.58 DTD 07/08/19 1.750 07/02/2024 98.9930 96.4800
MOODY'S RATING AAA
CUSIP 3135G0V75
1,975,000 FED NATL MTG ASSN 1,965,802.75 1,897,777.50 1.27 68,025.25- 14,798.78 DTD 10/18/19 1.625 10/15/2024 99.5343 96.0900
MOODY'S RATING AAA
CUSIP 3135G0W66
1049
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PAGE 6
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,295,000 FED NATL MTG ASSN 1,309,953.95 1,237,929.35 0.83 72,024.60- 4,910.21 DTD 01/10/20 1.625 01/07/2025 101.1548 95.5930
MOODY'S RATING AAA
CUSIP 3135G0X24
1,860,000 FED NATL MTG ASSN 1,856,168.40 1,729,353.60 1.16 126,814.80- 5,134.38 DTD 04/24/20 0.625 04/22/2025 99.7940 92.9760
MOODY'S RATING AAA
CUSIP 3135G03U5
2,500,000 FED NATL MTG ASSN 2,499,227.30 2,310,275.00 1.55 188,952.30- 3,611.11 DTD 06/19/20 0.500 06/17/2025 99.9691 92.4110
MOODY'S RATING AAA
CUSIP 3135G04Z3
2,500,000 FED NATL MTG ASSN 2,487,983.75 2,288,850.00 1.53 199,133.75- 937.50 DTD 08/27/20 0.375 08/25/2025 99.5194 91.5540
MOODY'S RATING AAA
CUSIP 3135G05X7
2,500,000 FED NATL MTG ASSN 2,492,700.00 2,287,275.00 1.53 205,425.00- 5,000.00 DTD 11/12/20 0.500 11/07/2025 99.7080 91.4910
MOODY'S RATING AAA
CUSIP 3135G06G3
1,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,079,687.50 967,810.00 0.65 111,877.50- 2,508.33 SER K049 CL A2 *24 DAY DELAY* 107.9688 96.7810
DTD 10/01/15 3.010 08/25/2025
CUSIP 3137BLMZ8
950,000 FHLMC MULTIFAMILY STRUCTURED P 1,018,132.81 925,176.50 0.62 92,956.31- 2,639.42 SER K050 CL A2 *24 DAY DELAY* 107.1719 97.3870
DTD 11/01/15 08/25/2025
CUSIP 3137BLW95
440,000 FHLMC MULTIFAMILY STRUCTURED P 453,079.69 428,071.60 0.29 25,008.09- 1,212.93 SER K051 CL A2 *24 DAY DELAY* 102.9727 97.2890
DTD 12/01/15 3.308 09/25/2025
CUSIP 3137BM7C4
1050
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 570,000 FHLMC MULTIFAMILY STRUCTURED P 582,001.17 549,747.90 0.37 32,253.27- 1,422.63 SER K053 CL A2 *24 DAY DELAY* 102.1055 96.4470
DTD 03/01/16 2.995 12/25/2025
CUSIP 3137BN6G4
650,000 FHLMC MULTIFAMILY STRUCTURED P 687,451.17 616,278.00 0.41 71,173.17- 1,437.04 SER K058 CL A2 *24 DAY DELAY* 105.7617 94.8120
DTD 11/01/16 2.653 08/25/2026
CUSIP 3137BSP72
1,000,000 FHLMC MULTIFAMILY STRUCTURED P 950,664.06 961,010.00 0.64 10,345.94 2,703.33 SER K068 CL A2 *24 DAY DELAY* 95.0664 96.1010
DTD 10/01/17 3.244 08/25/2027
MOODY'S RATING AAA
CUSIP 3137FBBX3
879,250.27 GM FINANCIAL AUTOMOBILE LEASIN 879,238.32 861,498.21 0.58 17,740.11- 95.25 SER 2021-3 CL A3 *0 DAY DELAY* 99.9987 97.9810
DTD 08/18/21 0.390 10/21/2024
CUSIP 36262XAC8
945,000 GM FINANCIAL AUTOMOBILE LEASIN 944,991.87 919,872.45 0.62 25,119.42- 534.19 SER 2022-1 CL A3 *0 DAY DELAY* 99.9992 97.3410
DTD 02/23/22 1.850 03/20/2025
MOODY'S RATING AAA
CUSIP 36265MAC9
350,000 GM FINANCIAL SECURITIZED TERM 349,991.08 332,024.00 0.22 17,967.08- 99.17 SER 2021-4 CL A3 *0 DAY DELAY* 99.9975 94.8640
DTD 10/21/21 0.680 09/16/2026
MOODY'S RATING AAA
CUSIP 362554AC1
390,000 GM FINANCIAL SECURITIZED TERM 389,918.49 377,664.30 0.25 12,254.19- 503.75 ASSET BCKD SEC SER 2022-2 CL A3 99.9791 96.8370
DTD 04/13/2022 3.100% 02/16/2027
CALLABLE
MOODY'S RATING AAA
CUSIP 362585AC5
1051
CC 05-16-2023
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PAGE 8
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 295,000 GM FINANCIAL SECURITIZED TERM 294,974.36 280,288.35 0.19 14,686.01- 154.88 SER 2022-1 CL A3 *0 DAY DELAY* 99.9913 95.0130
DTD 01/19/22 1.260 11/16/2026
CUSIP 380146AC4
1,400,000 GUARDIAN LIFE GLOB FUND 1,385,860.00 1,262,660.00 0.85 123,200.00- 3,777.08 144A PRIV PLCMT 0.875 12/10/2025 98.9900 90.1900
MOODY'S RATING AA1
CUSIP 40139LBC6
34,769.09 HONDA AUTO RECEIVABLES OWNER T 34,766.36 34,421.75 0.02 344.61- 12.67 SER 2020-2 CL A3 *0 DAY DELAY* 99.9922 99.0010
DTD 05/27/20 0.820 07/15/2024
MOODY'S RATING AAA
CUSIP 43813DAC2
162,041.83 HONDA AUTO RECEIVABLES OWNER T 162,038.87 157,619.71 0.11 4,419.16- 12.15 SER 2021-1 CL A3 *0 DAY DELAY* 99.9982 97.2710
DTD 02/24/21 0.270 04/21/2025
MOODY'S RATING AAA
CUSIP 43813GAC5
206,120.78 HONDA AUTO RECEIVABLES OWNER T 206,090.50 202,451.83 0.14 3,638.67- 27.54 SER 2020-3 CL A3 *0 DAY DELAY* 99.9853 98.2200
DTD 09/29/20 0.370 10/18/2024
CUSIP 43813KAC6
740,000 HONDA AUTO RECEIVABLES OWNER T 739,888.70 709,482.40 0.48 30,406.30- 618.31 SER 2022-1 CL A3 *0 DAY DELAY* 99.9850 95.8760
DTD 02/23/22 1.000 05/15/2026
MOODY'S RATING AAA
CUSIP 43815BAC4
460,000 HONDA AUTO RECEIVABLES OWNER T 459,903.03 439,346.00 0.29 20,557.03- 112.44 SER 2021-4 CL A3 *0 DAY DELAY* 99.9789 95.5100
DTD 11/24/21 0.880 01/21/2026
MOODY'S RATING AAA
CUSIP 43815GAC3
1052
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 541,121.52 HYUNDAI AUTO LEASE SECURITIZAT 541,040.35 534,628.06 0.36 6,412.29- 69.44 SER 2021-B CL A3 *0 DAY DELAY* 99.9850 98.8000
144A PRIV PLCMT 0.330 06/17/2024
MOODY'S RATING AAA
CUSIP 44891VAC5
540,000 HYUNDAI AUTO LEASE SECURITIZAT 539,988.07 525,139.20 0.35 14,848.87- 278.40 SER 2022-A CL A3 *0 DAY DELAY* 99.9978 97.2480
144A PRIV PLCMT 1.160 01/15/2025
MOODY'S RATING AAA
CUSIP 44891WAC3
1,010,000 HYUNDAI AUTO RECEIVABLES TRUST 1,009,961.12 970,973.60 0.65 38,987.52- 996.53 ASSET BCKD SEC SER 2022-A CL A3 99.9962 96.1360
DTD 03/16/2022 2.220% 10/15/2026
CALLABLE
CUSIP 448977AD0
392,283.3 HYUNDAI AUTO RECEIVABLES TRUST 392,242.03 381,456.28 0.26 10,785.75- 66.25 SER 2021-A CL A3 *0 DAY DELAY* 99.9895 97.2400
DTD 04/28/21 0.380 09/15/2025
CUSIP 44933LAC7
1,330,000 HYUNDAI AUTO RECEIVABLES TRUST 1,296,371.65 1,268,846.60 0.85 27,525.05- 437.42 SER 2021-C CL A3 *0 DAY DELAY* 97.4716 95.4020
DTD 11/17/21 0.740 05/15/2026
CUSIP 44935FAD6
2,800,000 INTER-AMERICAN DEVEL BK 2,792,300.00 2,720,844.00 1.82 71,456.00- 2,644.44 DTD 09/02/20 0.250 11/15/2023 99.7250 97.1730
MOODY'S RATING AAA
CUSIP 4581X0DP0
2,460,000 INTER-AMERICAN DEVEL BK 2,448,733.20 2,247,185.40 1.51 201,547.80- 9,626.46 DTD 04/20/21 0.875 04/20/2026 99.5420 91.3490
MOODY'S RATING AAA
CUSIP 4581X0DV7
1053
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,400,000 INTL BK RECON & DEVELOP 2,388,859.25 2,199,264.00 1.47 189,595.25- 5,100.00 DTD 10/28/20 0.500 10/28/2025 99.5358 91.6360
MOODY'S RATING AAA
CUSIP 459058JL8
2,500,000 INTL FINANCE CORP 2,471,150.00 2,304,650.00 1.55 166,500.00- 1,953.13 DTD 07/16/20 0.375 07/16/2025 98.8460 92.1860
MOODY'S RATING AAA
CUSIP 45950KCT5
450,000 JOHN DEERE OWNER TRUST 449,900.46 434,938.50 0.29 14,961.96- 464.00 ASSET BCKD SEC SER 2022-A CL A3 99.9779 96.6530
DTD 03/16/2022 2.320% 09/16/2026
NON CALLABLE
MOODY'S RATING AAA
CUSIP 47787JAC2
59,352.21 JOHN DEERE OWNER TRUST 59,343.16 58,761.66 0.04 581.50- 13.45 SER 2020-B CL A3 *0 DAY DELAY* 99.9848 99.0050
DTD 07/22/20 0.510 11/15/2024
MOODY'S RATING AAA
CUSIP 47787NAC3
29,181.72 JOHN DEERE OWNER TRUST 29,179.94 29,055.07 0.02 124.87- 14.27 SER 2020-A CL A3 *0 DAY DELAY* 99.9939 99.5660
DTD 03/11/20 1.100 08/15/2024
MOODY'S RATING AAA
CUSIP 47789KAC7
580,000 JOHN DEERE OWNER TRUST 579,948.26 554,862.80 0.37 25,085.46- 125.67 SER 2021-B CL A3 *0 DAY DELAY* 99.9911 95.6660
DTD 07/21/21 0.520 03/16/2026
MOODY'S RATING AAA
CUSIP 47789QAC4
655,000 JOHN DEERE OWNER TRUST 654,937.45 642,378.15 0.43 12,559.30- 1,088.76 ASSET BCKD SEC SER 2022-B CL A3 99.9905 98.0730
DTD 07/20/2022 3.740% 02/16/2027
NON CALLABLE
MOODY'S RATING AAA
CUSIP 47800AAC4
1054
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,050,000 JOHN DEERE OWNER TRUST 1,049,918.52 1,058,526.00 0.71 8,607.48 2,375.33 ASSET BCKD SEC SER 2022-C CL A3 99.9923 100.8120
DTD 10/19/2022 5.090% 06/15/2027
CALLABLE
MOODY'S RATING AAA
CUSIP 47800BAC2
655,000 JPMORGAN CHASE & 655,406.85 620,481.50 0.42 34,925.35- 1,727.78 SER F2F 100.0621 94.7300
DTD 06/23/21 06/23/2025
MOODY'S RATING A1
CUSIP 46647PCK0
401,000 JPMORGAN CHASE & CO 415,969.33 375,227.73 0.25 40,741.60- 3,689.17 DTD 04/22/20 04/22/2026 103.7330 93.5730
MOODY'S RATING A1
CUSIP 46647PBK1
1,370,000 JPMORGAN CHASE & CO 1,371,773.90 1,298,225.70 0.87 73,548.20- 3,762.93 DTD 06/01/21 06/01/2025 100.1295 94.7610
MOODY'S RATING A1
CUSIP 46647PCH7
1,000,000 MASSMUTUAL GLOBAL FUNDIN 1,002,230.00 888,760.00 0.60 113,470.00- 2,500.00 144A PRIV PLCMT 1.200 07/16/2026 100.2230 88.8760
MOODY'S RATING AA3
CUSIP 57629WDE7
945,000 MASTERCARD INC 944,083.35 974,143.80 0.65 30,060.45 2,815.31 DTD 03/09/2023 4.875% 03/09/2028 99.9030 103.0840
CALLABLE
MOODY'S RATING AA3
CUSIP 57636QAW4
1,115,000 MET LIFE GLOB FUNDING I 1,113,728.90 996,341.70 0.67 117,387.20- 4,645.83 144A PRIV PLCMT 1.875 01/11/2027 99.8860 89.3580
MOODY'S RATING AA3
CUSIP 59217GER6
1055
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PAGE 12
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 770,000 MET TOWER GLOBAL FUNDING 769,291.60 683,290.30 0.46 86,001.30- 454.51 144A PRIV PLCMT 1.250 09/14/2026 99.9080 88.7390
MOODY'S RATING AA3
CUSIP 58989V2D5
650,000 MORGAN STANLEY 615,699.50 609,869.00 0.41 5,830.50- 6,044.35 DTD 04/28/20 04/28/2026 94.7230 93.8260
MOODY'S RATING A1
CUSIP 6174468Q5
1,680,000 NEW YORK LIFE GLOBAL FDG 1,678,185.60 1,587,112.80 1.06 91,072.80- 5,210.33 144A PRIV PLCMT 1.450 01/14/2025 99.8920 94.4710
MOODY'S RATING AAA
CUSIP 64952WEK5
33,753.24 NISSAN AUTO RECEIVABLES OWNER 33,920.69 33,705.99 0.02 214.70- 28.95 SER 2019-C CL A3 *0 DAY DELAY* 100.4961 99.8600
DTD 10/23/19 1.930 07/15/2024
MOODY'S RATING AAA
CUSIP 65479JAD5
670,000 NORTHERN TRUST CORP 668,914.60 656,365.50 0.44 12,549.10- 10,496.67 DTD 05/10/2022 4.000% 05/10/2027 99.8380 97.9650
CALLABLE
MOODY'S RATING A2
CUSIP 665859AW4
850,000 NORTHWESTERN MUTUAL GLBL 827,449.50 764,345.50 0.51 63,104.00- 1,454.44 144A PRIV PLCMT 0.800 01/14/2026 97.3470 89.9230
MOODY'S RATING AAA
CUSIP 66815L2A6
1,170,000 NORTHWESTERN MUTUAL GLBL 1,169,602.20 1,152,859.50 0.77 16,742.70- 11,700.00 DTD 07/01/2022 4.000% 07/01/2025 99.9660 98.5350
NON CALLABLE
144A PRIVATE PLACEMENT
MOODY'S RATING AAA
CUSIP 66815L2J7
1056
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 370,000 PACCAR FINANCIAL CORP 369,182.30 356,872.40 0.24 12,309.90- 1,016.47 MED TERM NOTE 99.7790 96.4520
DTD 08/15/19 2.150 08/15/2024
MOODY'S RATING A1
CUSIP 69371RQ25
680,000 PACCAR FINANCIAL CORP 679,632.80 641,607.20 0.43 38,025.60- 491.11 MED TERM NOTE 99.9460 94.3540
DTD 08/09/21 0.500 08/09/2024
MOODY'S RATING A1
CUSIP 69371RR40
885,000 PACCAR FINANCIAL CORP 884,769.90 854,387.85 0.57 30,382.05- 12,190.88 DTD 04/07/2022 2.850% 04/07/2025 99.9740 96.5410
NON CALLABLE
MOODY'S RATING A1
CUSIP 69371RR73
904,000 PRICOA GLOBAL FUNDING 1 832,972.72 820,144.96 0.55 12,827.76- 602.67 144A PRIV PLCMT 0.800 09/01/2025 92.1430 90.7240
MOODY'S RATING AA3
CUSIP 74153WCM9
885,000 PRICOA GLOBAL FUNDING 1 884,088.45 834,537.30 0.56 49,551.15- 3,251.15 144A PRIV PLCMT 1.150 12/06/2024 99.8970 94.2980
MOODY'S RATING AA3
CUSIP 74153WCQ0
1,500,000 ROYAL BANK OF CANADA 1,533,359.18 1,451,175.00 0.97 82,184.18- 7,968.75 DTD 07/16/19 2.550 07/16/2024 102.2240 96.7450
MOODY'S RATING A1
CUSIP 78013XZU5
1,050,000 ROYAL BANK OF CANADA 1,049,611.50 1,018,962.00 0.68 30,649.50- 16,439.06 MEDIUM TERM NOTE 99.9630 97.0440
CONVERTIBLE
DTD 04/14/2022 3.375% 04/14/2025
NON CALLABLE
MOODY'S RATING A1
CUSIP 78016EZ59
1057
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,760,000 SALESFORCE.COM INC 1,748,937.40 1,671,630.40 1.12 77,307.00- 2,322.22 DTD 07/12/21 0.625 07/15/2024 99.3715 94.9790
MOODY'S RATING A2
CUSIP 79466LAG9
1,500,000 TORONTO-DOMINION BANK 1,527,255.00 1,458,150.00 0.98 69,105.00- 12,035.42 MED TERM NOTE 101.8170 97.2100
DTD 06/12/19 2.650 06/12/2024
MOODY'S RATING A1
CUSIP 89114QCA4
700,000 TORONTO-DOMINION BANK 674,737.00 658,665.00 0.44 16,072.00- 2,283.75 MED TERM NOTE SER FXD 96.3910 94.0950
DTD 01/12/22 1.450 01/10/2025
MOODY'S RATING A1
CUSIP 89114TZL9
151,883.81 TOYOTA AUTO RECEIVABLES OWNER 151,855.52 149,444.56 0.10 2,410.96- 23.63 SER 2020-D CL A3 *0 DAY DELAY* 99.9814 98.3940
DTD 10/13/20 0.350 01/15/2025
CUSIP 89236XAC0
430,000 TOYOTA AUTO RECEIVABLES OWNER 429,990.84 409,919.00 0.27 20,071.84- 135.69 SER 2021-D CL A3 *0 DAY DELAY* 99.9979 95.3300
DTD 11/15/21 0.710 04/15/2026
CUSIP 89238JAC9
590,848.46 TOYOTA AUTO RECEIVABLES OWNER 590,738.80 575,829.09 0.39 14,909.71- 68.28 SER 2021-A CL A3 *0 DAY DELAY* 99.9815 97.4580
DTD 02/08/21 0.260 05/15/2025
MOODY'S RATING AAA
CUSIP 89240BAC2
332,089.16 TOYOTA LEASE OWNER TRUST 325,447.37 328,937.63 0.22 3,490.26 32.38 SER 2021-A CL A3 *0 DAY DELAY* 98.0000 99.0510
144A PRIV PLCMT 0.390 04/22/2024
MOODY'S RATING AAA
CUSIP 89238EAC0
1058
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,150,000 TOYOTA LEASE OWNER TRUST 1,149,818.99 1,115,914.00 0.75 33,904.99- 688.72 ASSET BCKD SEC SER 2022-A CL A3 99.9843 97.0360
DTD 02/28/2022 1.960% 02/20/2025
CALLABLE
144A PRIVATE PLACEMENT
CUSIP 89238LAC4
1,385,000 TOYOTA MOTOR CREDIT CORP 1,384,390.60 1,248,937.60 0.84 135,453.00- 4,457.97 MED TERM NOTE 99.9560 90.1760
DTD 06/18/21 1.125 06/18/2026
MOODY'S RATING A1
CUSIP 89236TJK2
1,215,000 TOYOTA MOTOR CREDIT CORP 1,213,371.90 1,150,216.20 0.77 63,155.70- 3,817.13 DTD 01/13/22 1.450 01/13/2025 99.8660 94.6680
MOODY'S RATING A1
CUSIP 89236TJT3
3,100,000 UNITED STATES TREASURY NOTES 3,057,617.20 2,965,088.00 1.99 92,529.20- 2,506.11 DTD 03/15/2022 1.750% 03/15/2025 98.6328 95.6480
MOODY'S RATING AAA
CUSIP 91282CED9
3,250,000 UNITED STATES TREASURY NOTES 3,260,312.50 3,193,872.50 2.14 66,440.00- 26,552.14 DTD 06/30/2022 3.250% 06/30/2027 100.3173 98.2730
MOODY'S RATING AAA
CUSIP 91282CEW7
400,000 UNITED STATES TREASURY NOTES 393,218.75 385,220.00 0.26 7,998.75- 1,823.20 DTD 07/31/2022 2.750% 07/31/2027 98.3047 96.3050
MOODY'S RATING AAA
CUSIP 91282CFB2
4,500,000 UNITED STATES TREASURY NOTES 4,468,902.34 4,401,585.00 2.95 67,317.34- 12,228.26 DTD 08/31/2022 3.125% 08/31/2027 99.3090 97.8130
MOODY'S RATING AAA
CUSIP 91282CFH9
1059
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 3,450,000 UNITED STATES TREASURY NOTES 3,421,152.34 3,514,963.50 2.36 93,811.16 388.83 DTD 09/30/2022 4.125% 09/30/2027 99.1639 101.8830
MOODY'S RATING AAA
CUSIP 91282CFM8
850,000 UNITED STATES TREASURY NOTES 852,656.25 858,831.50 0.58 6,175.25 11,039.49 DTD 11/30/2022 3.875% 11/30/2027 100.3125 101.0390
MOODY'S RATING AAA
CUSIP 91282CFZ9
2,750,000 UNITED STATES TREASURY NOTES 2,775,107.42 2,778,902.50 1.86 3,795.08 26,787.81 DTD 12/31/2022 3.875% 12/31/2027 100.9130 101.0510
MOODY'S RATING AAA
CUSIP 91282CGC9
3,000,000 UNITED STATES TREASURY NOTES 2,957,929.69 2,984,310.00 2.00 26,380.31 17,403.32 DTD 01/31/2023 3.500% 01/31/2028 98.5977 99.4770
MOODY'S RATING AAA
CUSIP 91282CGH8
3,700,000 UNITED STATES TREASURY NOTES 3,699,113.28 3,766,785.00 2.53 67,671.72 12,869.57 DTD 02/28/2023 4.000% 02/29/2028 99.9760 101.8050
MOODY'S RATING AAA
CUSIP 91282CGP0
1,035,000 UNITEDHEALTH GROUP INC 1,025,051.35 941,073.75 0.63 83,977.60- 4,496.50 DTD 05/19/21 1.150 05/15/2026 99.0388 90.9250
MOODY'S RATING A3
CUSIP 91324PEC2
675,000 UNITEDHEALTH GROUP INC 675,316.70 660,244.50 0.44 15,072.20- 9,435.00 DTD 05/20/2022 3.700% 05/15/2027 100.0469 97.8140
CALLABLE
MOODY'S RATING A3
CUSIP 91324PEG3
1,250,000 US BANCORP 1,268,262.50 1,201,587.50 0.81 66,675.00- 5,083.33 DTD 07/29/19 2.400 07/30/2024 101.4610 96.1270
MOODY'S RATING A2
CUSIP 91159HHX1
1060
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,500,000 US TREASURY NOTE 1,469,765.63 1,377,480.00 0.92 92,285.63- 621.55 DTD 07/31/20 0.250 07/31/2025 97.9844 91.8320
MOODY'S RATING AAA
CUSIP 91282CAB7
2,400,000 US TREASURY NOTE 2,366,140.63 2,196,288.00 1.47 169,852.63- 16.39 DTD 09/30/20 0.250 09/30/2025 98.5892 91.5120
MOODY'S RATING AAA
CUSIP 91282CAM3
2,450,000 US TREASURY NOTE 2,422,492.19 2,233,812.00 1.50 188,680.19- 2,571.82 DTD 10/31/20 0.250 10/31/2025 98.8772 91.1760
MOODY'S RATING AAA
CUSIP 91282CAT8
2,250,000 US TREASURY NOTE 2,209,658.20 2,052,427.50 1.38 157,230.70- 2,827.95 DTD 11/30/20 0.375 11/30/2025 98.2070 91.2190
MOODY'S RATING AAA
CUSIP 91282CAZ4
2,500,000 US TREASURY NOTE 2,456,445.31 2,269,425.00 1.52 187,020.31- 1,553.87 DTD 02/01/21 0.375 01/31/2026 98.2578 90.7770
MOODY'S RATING AAA
CUSIP 91282CBH3
2,500,000 US TREASURY NOTE 2,493,652.34 2,279,100.00 1.53 214,552.34- 7,872.93 DTD 04/30/21 0.750 04/30/2026 99.7461 91.1640
MOODY'S RATING AAA
CUSIP 91282CBW0
1,400,000 US TREASURY NOTE 1,379,054.68 1,267,882.00 0.85 111,172.68- 33.47 DTD 09/30/21 0.875 09/30/2026 98.5039 90.5630
MOODY'S RATING AAA
CUSIP 91282CCZ2
1,400,000 US TREASURY NOTE 1,391,468.75 1,276,898.00 0.86 114,570.75- 6,613.26 DTD 11/01/21 1.125 10/31/2026 99.3906 91.2070
CUSIP 91282CDG3
1061
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,700,000 US TREASURY NOTE 1,753,191.41 1,654,712.00 1.11 98,479.41- 5,018.99 DTD 08/15/14 2.375 08/15/2024 103.1289 97.3360
MOODY'S RATING AAA
CUSIP 912828D56
2,000,000 US TREASURY NOTE 2,018,574.22 1,940,620.00 1.30 77,954.22- 10,055.25 DTD 06/30/17 2.000 06/30/2024 100.9287 97.0310
MOODY'S RATING AAA
CUSIP 912828XX3
1,700,000 US TREASURY NOTE 1,705,976.56 1,653,318.00 1.11 52,658.56- 14,276.24 DTD 05/01/17 2.000 04/30/2024 100.3516 97.2540
MOODY'S RATING AAA
CUSIP 912828X70
2,100,000 US TREASURY NOTE 2,087,203.13 2,014,698.00 1.35 72,505.13- 9,238.26 DTD 12/31/19 1.750 12/31/2024 99.3906 95.9380
CUSIP 912828YY0
1,500,000 US TREASURY NOTE 1,523,144.53 1,418,325.00 0.95 104,819.53- 1,491.71 DTD 03/02/20 1.125 02/28/2025 101.5430 94.5550
MOODY'S RATING AAA
CUSIP 912828ZC7
2,500,000 US TREASURY NOTE 2,360,839.85 2,318,750.00 1.55 42,089.85- 3,936.46 DTD 04/30/20 0.375 04/30/2025 94.4336 92.7500
MOODY'S RATING AAA
CUSIP 912828ZL7
570,000 VERIZON MASTER TRUST 569,974.92 562,219.50 0.38 7,755.42- 647.90 ASSET BCKD SEC SER 2022-5 CL A1A 99.9956 98.6350
DTD 08/11/2022 VAR CPN 07/20/2027
CALLABLE
CUSIP 92348KAV5
263,143.4 VERIZON OWNER TRUST 263,088.13 260,140.93 0.17 2,947.20- 37.79 SER 2020-B CL A *0 DAY DELAY* 99.9790 98.8590
DTD 08/12/20 0.470 02/20/2025
MOODY'S RATING AAA
CUSIP 92290BAA9
1062
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PAGE 19
STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED
PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 350,000 WALMART INC 349,338.50 315,511.00 0.21 33,827.50- 142.92 DTD 09/17/21 1.050 09/17/2026 99.8110 90.1460
MOODY'S RATING AA2
CUSIP 931142ER0
TOTAL BOND & NOTES 155,785,689.74 148,410,822.34 99.51 7,374,867.40- 539,438.77 ====================================================================================================================================== TOTAL INVESTMENTS 156,510,610.07 149,135,742.67 100.00 7,374,867.40- 540,962.73 TOTAL ACCRUALS 540,962.73 540,962.73
====================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 157,051,572.80 149,676,705.40 1063
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PAGE 20
CASH SUMMARY CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
CASH SUMMARY
DESCRIPTION PRINCIPAL CASH INCOME CASH
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 0.00
RECEIPTS
NET INTEREST COLLECTED 0.00 227,208.96
TRANSFER RECEIPTS 227,208.96 0.00
SALES 2,909,398.19 0.00
CASH MANAGEMENT SALES 1,814,925.23 0.00
TOTAL CASH RECEIPTS 4,951,532.38 227,208.96
DISBURSEMENTS
INVESTMENT MANAGEMENT EXPENSES 9,066.69- 0.00
TRANSFER DISBURSEMENTS 0.00 227,208.96-
PURCHASES 2,558,208.35- 0.00
CASH MANAGEMENT PURCHASES 2,384,257.34- 0.00
TOTAL CASH DISBURSEMENTS 4,951,532.38- 227,208.96-
ENDING BALANCE 0.00 0.00
________________________________________________________________________________________________________________________________________ 1064
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STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 156,391,276.44
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
CASH EQUIVALENTS
03/01/23 INTEREST RECEIVED 1,579.31
AS 100% TREAS MM FD-SVC CL #008
INTEREST FROM 2/1/23 TO 2/28/23
03/01/23 INTEREST RECEIVED 10.56
PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
INTEREST FROM 2/1/23 TO 2/28/23
03/31/23 2,340,726.97 CASH SWEEP PURCHASES FOR STMT PERIOD 2,340,726.97- 2,340,726.97 AS 100% TREAS MM FD-SVC CL #008
11 TRANSACTIONS
03/31/23 43,530.37 CASH SWEEP PURCHASES FOR STMT PERIOD 43,530.37- 43,530.37
PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
2 TRANSACTIONS
03/31/23 1,814,925.23- CASH SWEEP SALES FOR STMT PERIOD 1,814,925.23 1,814,925.23- AS 100% TREAS MM FD-SVC CL #008
5 TRANSACTIONS
BONDS & NOTES
03/15/23 INTEREST RECEIVED 2,845.38
AMERICAN EXPRES ABS 2.210% 3/15/27
CUSIP 02589BAA8
$0.00184/PV ON 1,545,000.00 PV
DUE 3/15/23
03/15/23 INTEREST RECEIVED 3,884.38
AMERICAN EXPRESS ABS 3.390% 5/17/27
CUSIP 02582JJT8
$0.00283/PV ON 1,375,000.00 PV
DUE 3/15/23
1065
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PAGE 22
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/23 INTEREST RECEIVED 18,572.50
BERKSHIRE HATH 2.300% 3/15/27
CUSIP 084664CZ2
INTEREST ON 1,615,000.000 UNITS
03/27/23 INTEREST RECEIVED 93.36
BMW VEHICLE LEASE TR 0.330% 12/26/24
CUSIP 09690AAC7
$0.00027/PV ON 339,486.60 PV
DUE 3/25/23
03/27/23 35,698.97- PAID DOWN 35,698.97 35,695.29- 3.68 BMW VEHICLE LEASE TR 0.330% 12/26/24
CUSIP 09690AAC7
TO SETTLE ON 03/27/2023
03/27/23 INTEREST RECEIVED 412.50
BMW VEHICLE LEASE TR 1.100% 3/25/25
CUSIP 05601XAC3
$0.00092/PV ON 450,000.00 PV
DUE 3/25/23
03/27/23 INTEREST RECEIVED 1,417.75
BMW VEHICLE OWN ABS 3.210% 8/25/26
CUSIP 05602RAD3
$0.00268/PV ON 530,000.00 PV
DUE 3/25/23
03/03/23 INTEREST RECEIVED 11,760.00
CHARLES SCHWAB CORP 2.450% 3/03/27
CUSIP 808513BY0
INTEREST ON 960,000.000 UNITS
03/13/23 INTEREST RECEIVED 28,750.00
FED HOME LN BK 2.875% 9/13/24
CUSIP 3130A2UW4
INTEREST ON 2,000,000.000 UNITS
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STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/23/23 INTEREST RECEIVED 4,687.50
FED HOME LN MTG CORP 0.375% 9/23/25
CUSIP 3137EAEX3
INTEREST ON 2,500,000.000 UNITS
03/27/23 INTEREST RECEIVED 3,435.25
FED HOME LN MTG CORP 3.171% 10/25/24
CUSIP 3137BFE98
$0.00264/PV ON 1,300,000.00 PV
DUE 3/25/23
03/27/23 INTEREST RECEIVED 1,437.04
FHLMC MULTIFAMILY ST 2.653% 8/25/26
CUSIP 3137BSP72
$0.00221/PV ON 650,000.00 PV
DUE 3/25/23
03/27/23 INTEREST RECEIVED 1,422.62
FHLMC MULTIFAMILY ST 2.995% 12/25/25
CUSIP 3137BN6G4
$0.00250/PV ON 570,000.00 PV
DUE 3/25/23
03/27/23 INTEREST RECEIVED 2,508.33
FHLMC MULTIFAMILY ST 3.010% 8/25/25
CUSIP 3137BLMZ8
$0.00251/PV ON 1,000,000.00 PV
DUE 3/25/23
03/27/23 INTEREST RECEIVED 2,703.33
FHLMC MULTIFAMILY ST 3.244% 8/25/27
CUSIP 3137FBBX3
$0.00270/PV ON 1,000,000.00 PV
DUE 3/25/23
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STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/27/23 INTEREST RECEIVED 1,212.93
FHLMC MULTIFAMILY ST 3.308% 9/25/25
CUSIP 3137BM7C4
$0.00276/PV ON 440,000.00 PV
DUE 3/25/23
03/16/23 INTEREST RECEIVED 1,007.50
GM FINANCIAL ABS 3.100% 2/16/27
CUSIP 362585AC5
$0.00258/PV ON 390,000.00 PV
DUE 3/16/23
03/20/23 INTEREST RECEIVED 310.37
GM FINANCIAL AUTOMOB 0.390% 10/21/24
CUSIP 36262XAC8
$0.00033/PV ON 954,985.74 PV
DUE 3/20/23
03/20/23 75,735.47- PAID DOWN 75,735.47 75,734.44- 1.03 GM FINANCIAL AUTOMOB 0.390% 10/21/24
CUSIP 36262XAC8
03/20/23 INTEREST RECEIVED 1,496.25
GM FINANCIAL AUTOMOB 1.850% 3/20/25
CUSIP 36265MAC9
$0.00158/PV ON 945,000.00 PV
DUE 3/20/23
03/16/23 INTEREST RECEIVED 198.33
GM FINANCIAL SECURIT 0.680% 9/16/26
CUSIP 362554AC1
$0.00057/PV ON 350,000.00 PV
DUE 3/16/23
03/16/23 INTEREST RECEIVED 309.75
GM FINANCIAL SECURIT 1.260% 11/16/26
CUSIP 380146AC4
$0.00105/PV ON 295,000.00 PV
DUE 3/16/23
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STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/21/23 INTEREST RECEIVED 39.67
HONDA AUTO RECEIVABL 0.270% 4/21/25
CUSIP 43813GAC5
$0.00022/PV ON 176,319.93 PV
DUE 3/21/23
03/21/23 14,278.1- PAID DOWN 14,278.10 14,277.84- 0.26
HONDA AUTO RECEIVABL 0.270% 4/21/25
CUSIP 43813GAC5
03/20/23 INTEREST RECEIVED 71.67
HONDA AUTO RECEIVABL 0.370% 10/18/24
CUSIP 43813KAC6
$0.00031/PV ON 232,437.33 PV
DUE 3/18/23
03/20/23 26,316.55- PAID DOWN 26,316.55 26,312.68- 3.87 HONDA AUTO RECEIVABL 0.370% 10/18/24
CUSIP 43813KAC6
AT $16,544.8838 ON TRADE DATE 03/18/2023
TO SETTLE ON 03/20/2023
03/15/23 INTEREST RECEIVED 28.23
HONDA AUTO RECEIVABL 0.820% 7/15/24
CUSIP 43813DAC2
$0.00068/PV ON 41,317.49 PV
DUE 3/15/23
03/15/23 6,548.4- PAID DOWN 6,548.40 6,547.88- 0.52
HONDA AUTO RECEIVABL 0.820% 7/15/24
CUSIP 43813DAC2
03/21/23 INTEREST RECEIVED 337.33
HONDA AUTO RECEIVABL 0.880% 1/21/26
CUSIP 43815GAC3
$0.00073/PV ON 460,000.00 PV
DUE 3/21/23
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STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/23 INTEREST RECEIVED 1,159.33
HONDA AUTO RECEIVABL 1.000% 5/15/26
CUSIP 43815BAC4
$0.00157/PV ON 740,000.00 PV
DUE 3/15/23
03/15/23 INTEREST RECEIVED 172.28
HYUNDAI AUTO LEASE 0.330% 6/17/24
CUSIP 44891VAC5
$0.00027/PV ON 626,456.51 PV
DUE 3/15/23
03/15/23 85,334.99- PAID DOWN 85,334.99 85,322.19- 12.80 HYUNDAI AUTO LEASE 0.330% 6/17/24
CUSIP 44891VAC5
AT $3.6765 ON TRADE DATE 03/15/2023
03/15/23 INTEREST RECEIVED 522.00
HYUNDAI AUTO LEASE 1.160% 1/15/25
CUSIP 44891WAC3
03/15/23 INTEREST RECEIVED 1,868.50
HYUNDAI AUTO REC ABS 2.220% 10/15/26
CUSIP 448977AD0
$0.00185/PV ON 1,010,000.00 PV
DUE 3/15/23
03/15/23 INTEREST RECEIVED 133.36
HYUNDAI AUTO RECEIVA 0.380% 9/15/25
CUSIP 44933LAC7
$0.00032/PV ON 421,138.95 PV
DUE 3/15/23
03/15/23 28,855.65- PAID DOWN 28,855.65 28,852.61- 3.04 HYUNDAI AUTO RECEIVA 0.380% 9/15/25
CUSIP 44933LAC7
1070
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STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/23 INTEREST RECEIVED 820.17
HYUNDAI AUTO RECEIVA 0.740% 5/15/26
CUSIP 44935FAD6
$0.00062/PV ON 1,330,000.00 PV
DUE 3/15/23
03/09/23 830,000- SOLD 796,459.70 829,410.70- 32,951.00- JOHN DEERE CAPITAL 0.450% 1/17/24
CUSIP 24422EVN6
AT $95.9590 ON TRADE DATE 03/07/2023
TO SETTLE ON 03/09/2023
PERSHING LLC
03/09/23 ACCRUED INTEREST ON SALE 539.50
JOHN DEERE CAPITAL 0.450% 1/17/24
CUSIP 24422EVN6
03/16/23 200,000- SOLD 192,240.00 199,858.00- 7,618.00- JOHN DEERE CAPITAL 0.450% 1/17/24
CUSIP 24422EVN6
AT $96.1200 ON TRADE DATE 03/14/2023
TO SETTLE ON 03/16/2023
TORONTO DOMINION BANK
03/16/23 ACCRUED INTEREST ON SALE 147.50
JOHN DEERE CAPITAL 0.450% 1/17/24
CUSIP 24422EVN6
03/15/23 INTEREST RECEIVED 4,453.75
JOHN DEERE OWNE ABS 5.090% 6/15/27
CUSIP 47800BAC2
$0.00424/PV ON 1,050,000.00 PV
DUE 3/15/23
03/15/23 INTEREST RECEIVED 870.00
JOHN DEERE OWNER ABS 2.320% 9/16/26
CUSIP 47787JAC2
$0.00193/PV ON 450,000.00 PV
DUE 3/15/23
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PAGE 28
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/23 INTEREST RECEIVED 2,041.42
JOHN DEERE OWNER ABS 3.740% 2/16/27
CUSIP 47800AAC4
$0.00312/PV ON 655,000.00 PV
DUE 3/15/23
03/15/23 INTEREST RECEIVED 29.82
JOHN DEERE OWNER TRU 0.510% 11/15/24
CUSIP 47787NAC3
$0.00042/PV ON 70,156.18 PV
DUE 3/15/23
03/15/23 10,803.97- PAID DOWN 10,803.97 10,802.32- 1.65 JOHN DEERE OWNER TRU 0.510% 11/15/24
CUSIP 47787NAC3
03/15/23 INTEREST RECEIVED 251.33
JOHN DEERE OWNER TRU 0.520% 3/16/26
CUSIP 47789QAC4
$0.00043/PV ON 580,000.00 PV
DUE 3/15/23
03/15/23 INTEREST RECEIVED 34.47
JOHN DEERE OWNER TRU 1.100% 8/15/24
CUSIP 47789KAC7
$0.00092/PV ON 37,608.01 PV
DUE 3/15/23
03/15/23 8,426.29- PAID DOWN 8,426.29 8,425.77- 0.52
JOHN DEERE OWNER TRU 1.100% 8/15/24
CUSIP 47789KAC7
03/13/23 0.01- DELIVERED
JOHN DEERE OWNER TRU 2.210% 12/15/23
CUSIP 477870AC3
DELETION OF WORTHLESS
1072
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PAGE 29
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/09/23 945,000 PURCHASED 944,083.35- 944,083.35
MASTERCARD INC 4.875% 3/09/28
CUSIP 57636QAW4
AT $99.9030 ON TRADE DATE 03/06/2023
TO SETTLE ON 03/09/2023
J.P. MORGAN SECURITIES INC., -
03/15/23 INTEREST RECEIVED 120.27
NISSAN AUTO RECEIVAB 1.930% 7/15/24
CUSIP 65479JAD5
$0.00161/PV ON 74,774.12 PV
DUE 3/15/23
03/15/23 41,020.88- PAID DOWN 41,020.88 41,224.38- 203.50- NISSAN AUTO RECEIVAB 1.930% 7/15/24
CUSIP 65479JAD5
03/14/23 INTEREST RECEIVED 4,812.50
P/P MET TOWER GLOBAL 1.250% 9/14/26
CUSIP 58989V2D5
INTEREST ON 770,000.000 UNITS
03/01/23 INTEREST RECEIVED 3,616.00
P/P PRICOA GLOBAL FU 0.800% 9/01/25
CUSIP 74153WCM9
INTEREST ON 904,000.000 UNITS
03/15/23 INTEREST RECEIVED 139.03
TOYOTA AUTO RECEIVAB 0.260% 5/15/25
CUSIP 89240BAC2
$0.00022/PV ON 641,680.32 PV
DUE 3/15/23
03/15/23 50,831.86- PAID DOWN 50,831.86 50,822.43- 9.43 TOYOTA AUTO RECEIVAB 0.260% 5/15/25
CUSIP 89240BAC2
1073
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PAGE 30
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/15/23 INTEREST RECEIVED 50.24
TOYOTA AUTO RECEIVAB 0.350% 1/15/25
CUSIP 89236XAC0
$0.00029/PV ON 172,260.09 PV
DUE 3/15/23
03/15/23 20,376.28- PAID DOWN 20,376.28 20,372.48- 3.80 TOYOTA AUTO RECEIVAB 0.350% 1/15/25
CUSIP 89236XAC0
03/15/23 INTEREST RECEIVED 254.42
TOYOTA AUTO RECEIVAB 0.710% 4/15/26
CUSIP 89238JAC9
$0.00059/PV ON 430,000.00 PV
DUE 3/15/23
03/20/23 INTEREST RECEIVED 1,878.33
TOYOTA LEASE OWN ABS 1.960% 2/20/25
CUSIP 89238LAC4
$0.00163/PV ON 1,150,000.00 PV
DUE 3/20/23
03/20/23 INTEREST RECEIVED 132.27
TOYOTA LEASE OWNER 0.390% 4/22/24
CUSIP 89238EAC0
$0.00032/PV ON 406,975.24 PV
DUE 3/20/23
03/20/23 74,886.08- PAID DOWN 74,886.08 73,388.36- 1,497.72 TOYOTA LEASE OWNER 0.390% 4/22/24
CUSIP 89238EAC0
03/15/23 INTEREST RECEIVED 27,125.00
U.S. TREASURY NOTES 1.750% 3/15/25
CUSIP 91282CED9
INTEREST ON 3,100,000.000 UNITS
1074
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PAGE 31
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/17/23 1,600,000 PURCHASED 1,614,125.00- 1,614,125.00 U.S. TREASURY NOTES 4.000% 2/29/28
CUSIP 91282CGP0
AT $100.8828 ON TRADE DATE 03/14/2023
TO SETTLE ON 03/17/2023
CITADEL DERIVATIVES GROUP LLC
03/17/23 ACCRUED INTEREST ON PURCHASE 2,956.52-
U.S. TREASURY NOTES 4.000% 2/29/28
CUSIP 91282CGP0
03/31/23 INTEREST RECEIVED 71,156.25
U.S. TREASURY NOTES 4.125% 9/30/27
CUSIP 91282CFM8
INTEREST ON 3,450,000.000 UNITS
03/15/23 INTEREST RECEIVED 1,812.50
US TREASURY NOTE 0.250% 3/15/24
SEDOL BMDB780
INTEREST ON 1,450,000.000 UNITS
03/15/23 1,450,000- SOLD 1,386,902.34 1,446,488.28- 59,585.94- US TREASURY NOTE 0.250% 3/15/24
SEDOL BMDB780
AT $95.6484 ON TRADE DATE 03/14/2023
TO SETTLE ON 03/15/2023
BMOCM/BONDS
03/31/23 INTEREST RECEIVED 3,000.00
US TREASURY NOTE 0.250% 9/30/25
CUSIP 91282CAM3
INTEREST ON 2,400,000.000 UNITS
03/31/23 INTEREST RECEIVED 6,125.00
US TREASURY NOTE 0.875% 9/30/26
CUSIP 91282CCZ2
INTEREST ON 1,400,000.000 UNITS
1075
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PAGE 32
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/20/23 INTEREST RECEIVED 1,767.00
VERIZON MAST ABS V-M 3.720% 7/20/27
CUSIP 92348KAV5
$0.00310/PV ON 570,000.00 PV
DUE 3/20/23
03/20/23 INTEREST RECEIVED 124.48
VERIZON OWNER TRUST 0.470% 2/20/25
CUSIP 92290BAA9
$0.00039/PV ON 317,826.06 PV
DUE 3/20/23
03/20/23 54,682.66- PAID DOWN 54,682.66 54,671.18- 11.48 VERIZON OWNER TRUST 0.470% 2/20/25
CUSIP 92290BAA9
03/27/23 INTEREST RECEIVED 2,639.42
VR FHLMC MULTIFAMI 3.334% 8/25/25
CUSIP 3137BLW95
$0.00278/PV ON 950,000.00 PV
DUE 3/25/23
03/17/23 INTEREST RECEIVED 1,837.50
WALMART INC 1.050% 9/17/26
CUSIP 931142ER0
INTEREST ON 350,000.000 UNITS
TRANSFER RECEIPTS
03/01/23 ADDITION TO ACCOUNT 5,205.87
TRANSFER FROM INCOME
03/03/23 ADDITION TO ACCOUNT 11,760.00
TRANSFER FROM INCOME
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PAGE 33
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 03/09/23 ADDITION TO ACCOUNT 539.50
TRANSFER FROM INCOME
03/13/23 ADDITION TO ACCOUNT 28,750.00
TRANSFER FROM INCOME
03/14/23 ADDITION TO ACCOUNT 4,812.50
TRANSFER FROM INCOME
03/15/23 ADDITION TO ACCOUNT 65,203.60
TRANSFER FROM INCOME
03/16/23 ADDITION TO ACCOUNT 3,647.86
TRANSFER FROM INCOME
03/20/23 ADDITION TO ACCOUNT 4,661.35
TRANSFER FROM INCOME
03/21/23 ADDITION TO ACCOUNT 377.00
TRANSFER FROM INCOME
03/23/23 ADDITION TO ACCOUNT 4,687.50
TRANSFER FROM INCOME
03/27/23 ADDITION TO ACCOUNT 17,282.53
TRANSFER FROM INCOME
03/31/23 ADDITION TO ACCOUNT 80,281.25
TRANSFER FROM INCOME
INVESTMENT MANAGEMENT EXPENSES
03/06/23 INVESTMENT MGMT FEE 9,066.69-
PAID TO CHANDLER ASSET MANAGEMENT INC
INV 2302CUPERTIN CHANDLER ASSET
MGMT FEE
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INVESTMENT AND INSURANCE PRODUCTS ARE:
• NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT, OBLIGATION OF, OR GUARANTEED BY ANY BANK OR BANKING AFFILIATE • SUBJECT TO INVESTMENT RISKS AND MAY LOSE VALUE, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED PAGE 34
STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD MARCH 1, 2023 THROUGH MARCH 31, 2023
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯
STATEMENT OF TRANSACTIONS
REALIZED
DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
TRANSFER DISBURSEMENTS
03/01/23 TRANSFER TO PRINCIPAL 5,205.87-
03/03/23 TRANSFER TO PRINCIPAL 11,760.00-
03/09/23 TRANSFER TO PRINCIPAL 539.50-
03/13/23 TRANSFER TO PRINCIPAL 28,750.00-
03/14/23 TRANSFER TO PRINCIPAL 4,812.50-
03/15/23 TRANSFER TO PRINCIPAL 65,203.60-
03/16/23 TRANSFER TO PRINCIPAL 3,647.86-
03/20/23 TRANSFER TO PRINCIPAL 4,661.35-
03/21/23 TRANSFER TO PRINCIPAL 377.00-
03/23/23 TRANSFER TO PRINCIPAL 4,687.50-
03/27/23 TRANSFER TO PRINCIPAL 17,282.53-
03/31/23 TRANSFER TO PRINCIPAL 80,281.25-
================================================================================================================= ENDING BALANCE 0.00 156,510,610.07
¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
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CITY OF CUPERTINO
PARS Post-Employment Benefits Trust 3/1/2023 to 3/31/2023 Kristina Alfaro
Director of Administrative Services
City of Cupertino
10300 Torre Ave.
Cupertino, CA 95014
Account Summary
Source 3/1/2023 Contributions Earnings Expenses Distributions Transfers 3/31/2023 OPEB 1001 $32,793,001.99 $0.00 $544,884.96 $9,735.30 $0.00 $0.00 $33,328,151.65 PENSION 1002 $18,035,635.06 $0.00 $299,680.39 $5,354.25 $0.00 $0.00 $18,329,961.20 Totals $50,828,637.05 $0.00 $844,565.35 $15,089.55 $0.00 $0.00 $51,658,112.85 Investment Selection
Source
OPEB
PENSION
Investment Objective
Source
OPEB
PENSION
Investment Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years OPEB 1.66% 5.46% -7.26% 9.78% 4.07% 5.29% 6/21/2010
PENSION 1.66% 5.46% -7.25% 9.42% - - 3/26/2019
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Balance as of
Individual account based on US Bank Balanced MM. Dual goals are to provide a moderate amount of current income with moderate capital growth.
Income production and longer term growth of capital.
City of Cupertino - PEN
Plan's Inception Date
Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
Individual account based on US Bank Balanced MM. Dual goals are to provide a moderate amount of current income with moderate capital growth.
Income production and longer term growth of capital.
Account Report for the Period
Balance as of
City of Cupertino - OPEB
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4/3/23, 8:45 AM 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
April 03, 2023
LAIF Home
PMIA Average Monthly
Yields
CITY OF CUPERTINO
FINANCE MANAGER
10300 TORRE AVENUE
CUPERTINO, CA 95014
Account Number:
March 2023 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 21,281,569.38
Total Withdrawal 0 00 Ending Balance 21,281,569.38
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CITY OF CUPERTINO
Agenda Item
23-12190 Agenda Date: 5/16/2023
Agenda #: 21.
Subject: Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental reports.
Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental reports.
CITY OF CUPERTINO Page 1 of 1 Printed on 5/10/2023
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CITY COUNCIL STAFF REPORT
Meeting: May 16, 2023
Subject
Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental reports.
Recommended Action
Receive the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and related supplemental reports.
Discussion
The City of Cupertino’s external auditor, Crowe LLP, audited the City’s accompanying financial statements as of and for the year ended June 30, 2022. During the audit, procedures were performed to obtain audit evidence regarding amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design appropriate audit procedures. Audit procedures are not designed to express an opinion on the effectiveness of the entity’s internal control.
The audit committee reviewed the ACFR as part of the March 27, 2023 meeting. The Management Discussion and Analysis section has been updated since that meeting to incorporate feedback received including, small grammatical error corrections, and corrected language on the appointment of the treasurer. Additional information was also added regarding the variance for the Administration department in Table 2 of the report.
Crowe LLP expressed an unmodified (or clean) opinion, stating “the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, the Transportation Special Revenue Fund, and the Housing Development Special Revenue Fund for the year then ended in 1082
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accordance with accounting principles generally accepted in the United States of America” (see FY 2021-22 ACFR, page 1).
Crowe LLP also issued an Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (GAGAS Report). The purpose of this report is solely to describe the scope of the auditor’s testing of internal control over financial reporting and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance.
The report disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standard.
The City of Cupertino engaged Crowe LLP to perform an Agreed-Upon-Procedures (AUP) on the City’s Appropriations Limit Worksheet related to the City’s compliance with Section 1.5 of Article XIIIB of the California Constitution during the period ending June 30, 2022. City Council adopted Resolution 21-054, establishing an Appropriations Limit of $114,666,491 for FY 2021-22; no exceptions were noted.
The City of Cupertino engaged Crowe LLP to perform an AUP on the 2019 Clean Water and Storm Protection Fee for the City of Cupertino; no exceptions were noted.
The City of Cupertino engaged Crowe LLP to perform an AUP on the City’s investment policy dated May 2021; exception was noted relating to nominal variances in the March 2022 investment report between the investment and custodial reports. The City's investment manager, Chandler Asset Management, and its custodian, Wells Fargo, have reported different values for the same bonds. The differences are due to a combination of factors, including rounding, timing, and the use of different bond pricing data providers.
While the values are similar, the difference can occur because each data provider may employ different methodologies and sources for pricing the bonds.
Lastly, the City of Cupertino engaged Crowe LLP to perform a Single Audit on the City’s federally funded program, COVID-19 – American Rescue Plan Act of 2021, in accordance with GAAS, Government Auditing Standards, and requirements under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Crowe LLP expressed an unmodified opinion, noting a reporting compliance deficiency; management has implemented controls mitigating the deficiency.
Sustainability Impact
No sustainability impact.
Fiscal Impact
No fiscal impact.
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_____________________________________
Prepared by: Jonathan Orozco, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Pamela Wu, City Manager
Attachments:
A – FY 2021-22 ACFR
B – FY 2021-22 Management Letter
C – FY 2021-22 SAS 114
D – FY 2021-22 Single Audit
E – FY 2021-22 GANN AUP Report
F – FY 2021-22 Investment AUP Report
G – FY 2021-22 Storm Drain AUP Report
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FISCAL YEAR
2021 - 2022
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1. To the Honorable Mayor and City Council
City of Cupertino, California
In planning and performing our audit of the financial statements of City of Cupertino, California (“City”) as of and for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified certain matters that we wish to communicate to you. Matters communicated in this letter are classified as follows:
x Deficiency – A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis.
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2. The purpose of this letter is solely to describe the scope of our testing of internal control over financial reporting and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. This letter is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Accordingly, this letter is not suitable for any other purpose.
Crowe LLP
Costa Mesa, California
March 31, 2023
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1. To the Honorable Mayor and City Council
City of Cupertino, California
Professional standards require that we communicate certain matters to keep you adequately informed about matters related to the financial statement audit that are, in our professional judgment, significant and relevant to your responsibilities in overseeing the financial reporting process. We communicate such matters in this report.
AUDITOR’S RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE
UNITED STATES OF AMERICA
Our responsibility is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. The audit of the financial statements does not relieve you of your responsibilities and does not relieve management of their responsibilities. Refer to our engagement letter with the City of Cupertino, California (City) for further information on the responsibilities of management and of Crowe LLP.
AUDITOR’S RESPONSIBILITY UNDER GOVERNMENT AUDITING STANDARDS As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of the City’s compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts or disclosures. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
COMMUNICATIONS REGARDING OUR INDEPENDENCE FROM THE CITY Auditing standards generally accepted in the United States of America require independence for all audits, and we confirm that we are independent auditors with respect to the City under the independence requirements established by the American Institute of Certified Public Accountants.
Additionally, we wish to communicate that we have the following relationships with the City that do not impair our independence but which, in our professional judgment, may reasonably be thought to bear on our independence and that we gave significant consideration to in reaching the conclusion that our independence has not been impaired.
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7. We are pleased to serve the City as its independent auditors and look forward to our continued relationship.
We provide the above information to assist you in performing your oversight responsibilities and would be pleased to discuss this letter or any matters further, should you desire. This letter is intended solely for the information and use of the Mayor and City Council and, if appropriate, management, and is not intended to be and should not be used by anyone other than these specified parties.
Crowe LLP
Costa Mesa, California
March 31, 2023
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CC 05-16-2023
1108 of 1145
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CC 05-16-2023
1109 of 1145
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2. Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Crowe LLP
Costa Mesa, California
March 31, 2023
1115
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5. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
The City is responsible for preparing a corrective action plan to address each audit finding included in our auditor's report. The City's corrective action plan was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on it.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 31, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Crowe LLP
Costa Mesa, California
March 31, 2023
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INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES To the Honorable Mayor and City Council
City of Cupertino, California
10300 Torre Avenue
Cupertino, California 95014-3202
Ladies and Gentlemen:
We have performed the procedures enumerated in Appendix A on the Appropriations Limit Worksheet (“Worksheet”) of the City of Cupertino, California (the “City”), related to the City’s compliance with Section
1.5 of Article XIIIB of the California Constitution during the period ending June 30, 2022. The City’s management is responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting users in understanding the Worksheet. We make no representation regarding the appropriateness of the procedures either for the purpose for which this report has been requested or for any other purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. An agreed-upon procedures engagement involves performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed.
The procedures and the associated findings are contained in Appendix A.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Honorable Mayor and the City Council and is not intended to be and should not be used by anyone other than these specified parties.
Crowe LLP
Costa Mesa, California
March 31, 2023
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INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES To the Honorable Mayor and City Council
City of Cupertino, California
10300 Torre Avenue
Cupertino, California 95014-3202
Ladies and Gentlemen:
We have performed the procedures enumerated in Appendix A on the Investment Policy of the City of Cupertino, California (the “City”). The City’s management is responsible for the Investment Policy.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting users in understanding the Investment Policy. We make no representation regarding the appropriateness of the procedures either for the purpose for which this report has been requested or for any other purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. An agreed-upon procedures engagement involves performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed.
The procedures and the associated findings are contained in Appendix A.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Investment Policy.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City and is not intended to be, and should not be, used by anyone other than the specified party.
Crowe LLP
Costa Mesa, California
March 31, 2023
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REPORT OF INDEPENDENT ACCOUNTANTS ON APPLYING AGREED-UPON
PROCEDURES
To the Honorable Mayor and City Council
City of Cupertino, California
10300 Torre Avenue
Cupertino, California 95014-3202
Ladies and Gentlemen:
We have performed the procedures enumerated in Appendix A on the 2019 Clean Water and Storm Protection Fee of the City of Cupertino, California (the “City”). The City’s management is responsible for the 2019 Clean Water and Storm Protection Fee.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting users in understanding the 2019 Clean Water and Storm Protection Fee. We make no representation regarding the appropriateness of the procedures either for the purpose for which this report has been requested or for any other purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. An agreed-upon procedures engagement involves performing specific procedures that the engaging party has agreed to and acknowledged to be appropriate for the intended purpose of the engagement and reporting on findings based on the procedures performed.
The procedures and the associated findings are contained in Appendix A.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the 219 Clean Water and Storm Protection Fee. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City and is not intended to be and should not be used by anyone other than these specified parties.
Crowe LLP
Costa Mesa, California
March 31, 2023
1131
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CITY OF CUPERTINO
Agenda Item
23-12313 Agenda Date: 5/16/2023
Agenda #: 22.
Subject: Receive the report regarding the 2023 Cupertino-Hsinchu Sister City Association Student Exchange Program and Adult Delegation Visit
Receive the report regarding the 2023 Cupertino-Hsinchu Sister City Association Student Exchange Program and Adult Delegation Visit
CITY OF CUPERTINO Page 1 of 1 Printed on 5/10/2023
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Cupertino-Hsinchu Sister City Association Student Exchange Program 2023 To the Cupertino City Council:
Honorable Mayor Hung Wei
Honorable Vice Mayor Sheila Mohan
Councilmember Liang Chao
Councilmember J.R. Fruen
Councilmember Kitty Moore
The Cupertino-Hsinchu Sister City Association, CHSCA, is pleased to present to the Cupertino City Council our Student Exchange Program April 2023 Report.
Our student exchange program dates back to 2004 when the first student exchange with our Sister City - Hsinchu, Taiwan occurred. The exchange activities were put on hold in 2020 due to Covid-19. After a 3 year hiatus, we are excited to restart our program this year.
This year’s Student Delegation included 20 students from the Cupertino Union School District (CUSD) and Fremont Union High School District (FUHSD) for a one week visit to Hsinchu from April 15th to April 23rd, 2023. During this trip we were also joined by our Mayor, City Staff, and school-district Board Members which allowed our group to show more aspects of our student program in Hsinchu.
The goal of the CHSCA Student Exchange program is to provide 7th-12th graders from our city and 2 school districts the opportunity to stay with a host family in Hsinchu, attend local schools to experience the education system in Taiwan, learn of the history of Hsinchu and Taiwan, and most importantly establish lifelong friendships between our students and host families.
Hsinchu is known as the Silicon Valley of Taiwan and with over 300 tech companies in the Hsinchu Science and Technology Park, this exchange allows students to see how connected our two cities are while experiencing Taiwanese culture firsthand. This report will highlight the major activities of our trip. It also attached a link to our 2023 CHSCA Student Delegation Website which provides more detailed information regarding our trip to our students’ families. The information includes student journals where each student was asked to chronicle their experiences throughout the week, and a photo gallery that highlights many of the activities our students participated during the week.
This year’s delegation consisted of 20 students, 5 from FUSHD and 15 from CUSD, a teacher chaperone, Dr. Jennifer Lashier, who is the Principal of CUSD's Chinese Language Immersion Program at Muir Elementary School, and our CHSCA members: President Janice Sung, Vice President Angela Chen, Vice President Chia-Ching Lin, and Student Coordinator Angelo Noguera. We were fortunate that 3 of our students are returning from our 2020 Delegation which was canceled due to Covid-19.
Prior to our trip in April, the students participated in 5 cultural training sessions to learn about Taiwanese culture, prepared a skit to highlight our life and culture here in Cupertino, and connected virtually with their host families before arriving in Taiwan. Our meetings were facilitated by members of our group who worked with our families in Cupertino, city and education officials in Hsinchu, and acted as primary contacts for our host families should any 1135
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issues arise. These meetings help make sure our students are prepared for their time in Hsinchu with our delegation and host families.
Official Delegation Visit to Hsinchu City Hall on April 17, 2023 Though our student exchange was only a week long, thanks to the Hsinchu City Education Officials and our host school for this year, Hsinke Junior High School, students were able to experience various aspects of student life in Hsinchu. The week consisted of our official delegation meeting with Hsinchu City Hall Officials, a day trip to Taipei and its surrounding areas, 3 days of school with their host student, and time to explore Hsinchu with their host families.
Our adult delegation was able to participate in many student activities as well as meetings with various city and education leaders to observe the educational system in Taiwan and share our own experiences working in the classroom. Our program tries to immerse students as much as possible in the culture of Hsinchu so that they become part of the Hsinchu family rather than just an outside observer.
A major component of our program is having students experience school life in Hsinchu.
Not only did students take classes with their host students, but our whole student delegation was able to visit several schools in the area to experience the unique classes and electives junior and high schools have to offer. During our first school visit to Fuli Junior High School on Monday, April 17th our whole delegation participated in classes on glass blowing, traditional dance, and archery. We are very fortunate to have created a strong relationship with Fuli over 1136
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the years to help provide our students with this unique opportunity of working with students at the school to create glass charms and decorations while learning archery from a team coached by an Olympic Medalist. The next school we visited as a delegation was Peiying Junior High on Wednesday, April 19th, where students constructed two plastic sculptures from laser cut plastics and wood materials all made at the school. Students finished off their sculptures by inserting LED lights and keychain rings.
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Student Delegation visit to Fuli Junior High School on April 17th, 2023 1138
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Delegation Visit to Pei-Ying Junior High School on April 19, 2023 With our visit to our host school Hsinke Junior High School on Thursday April 20th, students participated in Taiko drumming and clay sculpting. Even in the short time our students were in the Taiko Drumming class, they were able to learn a short routine and play alongside Hsinke students. Our City Council and School Board members were able to visit the clay sculpting class and see how our students alongside Hsinke students crafted clay hedgehog magnets that students were able to take home after completion. During the week, students were immersed in what a typical school day would be, collaborated with host school students to participate in clubs and electives, and took time to chat and learn from each other about their school life. Many of our students were provided school uniforms, introduced to the entire school, and had a chance to speak to their classes about their life in the Bay Area. Each of our host schools go above and beyond welcoming our students and make sure our students feel comfortable and a valued member of the student body. Creating positive relationships is the same in any culture and these student visits to the various schools in Hsinchu will hopefully lay a foundation for future communication and collaboration between our students and two cities. 1139
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City and Student Delegation Visit to Hsinke Junior High School on April 20th 2023 As well as participating in class at their host school, our students have a chance to immerse themselves in Taiwan and Hsinchu’s culture through living and exploring Taiwan with their host family for the week. On Tuesday, April 18th, our students along with their host students took a day trip on Taiwan’s High Speed Rail to Taipei to visit the National Palace museum to view artifacts and learn about the history of Ancient China. Afterwards, our delegation visited the towns of Jiufen and Pingxi to stroll through traditional street markets, sample local delicacies, and create special sky lanterns with their wishes written on them to send up into the sky. The day was capped off with a special dinner at Ding Tai Fung and exploring Taipei 101 to see the modern city of Taipei at night. It is during this first whole day our students spent with their host student that we see our delegation and Hsinchu students open up and bond with each other.
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Delegation Visit to Taipei, Jiufen and Pingxi on April 18th, 2023 The most memorable experiences developed during our trip are made through the time students spend with their host families. Upon landing in Hsinchu on Sunday 4/16, our students were greeted by all our host families at Hsinke Junior High and after a short meeting were off to explore the city. Throughout our program’s history, we have always been thankful for the generosity of our host families as they take in our students and make them part of their own family. When our chaperones visit students during the week, students share about their visit to local stores and restaurants, travel to other areas outside of Hsinchu, participate in karaoke nights with other members of our delegation and host students, and enjoy the unique sites and histories Hsinchu has to offer. It is not uncommon that we run into our students in the city taking selfies, drinking Pearl Milk Tea, and laughing with their host student. These relationships that have been developed over the week are recognized in our Farewell Dinner on Friday, 4/21 where each school principal, family, and members of the programs from both Hsinchu and Cupertino were recognized for all the work put in to make this special for everyone. The pictures shown in this report and our website only highlight a few of the laughs, smiles, performances, and tears that were on display as we celebrated our last few days together. It is after the Farewell Dinner and our send off on Sunday 4/23 that as an organization we are proud to say we have been able to create a positive experience for all those involved during this exchange activity. We are fortunate to hear back from past exchange students regarding their experiences, and we hope to continue to create these memorable experiences and long lasting friendships. 1143
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Farewell Recognition Part on April 21st, 2023
While the adult delegation participated in many of our student activities, our CHSCA members also visited many of the schools in the area, including reconnecting with many past host schools, principals, and staff. On Wednesday April 19th, we visited The Affiliated Experimental Elementary School of National Tsing Hua University which focuses on visual art and some of the student’s work has been displayed in the Cupertino Library in the past.
Chaperones were able to make custom buttons that highlighted one of the unique activities or locations in Hsinchu such as dragon boat racing, meatballs, or old shopping districts. With our Mayor, City Manager, and school board members we visited The National Experimental High School (NEHS) at Hsinchu Science Park. This school also hosts the International Bilingual 1144
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School at Hsinchu Science Park and in collaboration with the Hsinchu Science Park offers a mix of Western and Taiwanese education systems to support the science park and families who work at the various companies headquartered there. CHSCA started our relationship with the school over 6 years ago. With its mix of the traditional Taiwanese classes and school experiences along with Western Education practices such as Advanced Placement Classes, Content and Area standards used in the Bilingual Department, and the close proximity to the Hsinchu Science Park, NEHS highlights how globalization creates more opportunities and connections in education while building on the strengths of the area to create strong and unique education opportunities for all.
On April 22nd, our final full day in Hsinchu, the adult delegation traveled to Tainan to visit the National Cheng Kung University to learn about the numerous local technology startups in the area as well as listen to products being developed locally. Our group then traveled to Southern Taiwan Science Park to learn about the various local and global tech companies that call this area their home. After bidding farewell to our Mayor and her group, our group traveled to Kaohsiung to reconnect with the former Principal of NEHS and now principal of the I-Shou International School. What stood out about our visit to I-Shou was the focus on STEM with work areas such as Makerspace, Woodshop, Video and Media Production Rooms, Robotic Workshops, and collaboration rooms to allow students the freedom to pursue their creative views while exchanging ideas with others. It is through school visits like this one as well as the other schools during our trip, that our adult delegation is able to continue our relationship with educational leaders in Hsinchu. We hope to welcome these teachers and principals who hosted us in our October 2023 Exchange in Cupertino to continue to share our ideas and strengthen the bonds between our two cities.
As an association, the return of our student exchange program to Hsinchu after 3 years was a moment we were looking forward to. Though the global pandemic has brought numerous challenges and uncertainties in international travel, we are proud to say that upon returning to Cupertino, our trip was a resounding success for all those involved. We are forever grateful to our host families, schools, and city officials in Hsinchu for taking us in with open arms and going above and beyond in taking care of each and every one of us during our week. Being able to reconnect in person with Hsinchu and witness the positive experiences that all of our students were able to create lays a great foundation for future exchanges, including resuming our Host Family Program this coming October 2023 where we hope to welcome many of the Hsinchu students who hosted our students in April.
We would also like to show our thanks and appreciation to our Mayor, the City and School Board Delegation who spent time visiting our students in school as well as touring parts of Hsinchu and Taiwan. The support from our city as well as school districts help ensure a positive and healthy program for students in the future and we look forward to continuing to share our students' experiences in years to come.
Sincerely,
Cupertino-Hsinchu Sister City Association
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