Cupertino City Council
September 6, 2023

ATTEST:

Kirsten Squarcia, City Clerk Date
2/9/23
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EXHIBIT A
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1 City of Cupertino
City Council Procedures
Manual
Attachments:

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

2.17 Effective Date:

February 8, 2023
Responsible Departments:

City Manager’ s Office
Related Policies & Notes:

See Exhibits A–D.

1. Introduction

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

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

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

2. Selection of the Mayor and Vice Mayor

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

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

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

Removal for cause shall mean removal of a Councilmember because of such member’ s ( a) willful and continued failure substantially to perform their duties, (b) conviction for, or guilty plea to, a felony, or a crime involving moral 428
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2 turpitude, (c) abuse of illegal drugs or other controlled substances or habitual intoxication, or (d) other illegal activities. The removal should proceed with a formal warning, which states with proven evidence of the member’s failure to perform their duties and proposed corrective measures. The Mayor or Vice Mayor must be advised of the proposed cause for removal at least 72 hours before any action is taken. If the Mayor is removed from office, the Vice Mayor shall become Mayor. If either officer is removed from office, the Vice Mayor

3. Councilmember Committees and Subcommittees

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

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

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

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

4.2 Attendance at Council Meetings. At least one commission member, preferably the Chair or Vice Chair, must attend City Council meetings when the commission has an item of interest on the Council agenda, so as to be available to answer Council questions. Staff shall provide the commission with advance 429
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3 notice for the commission to select a member to attend the City Council meeting.

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

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

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

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

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

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

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

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

5. Administrative Matters

5.1 Attendance. City Councilmembers acknowledge that attendance at lawful meetings of the City Council is part of their official duty. Councilmembers shall 430
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4 make a good faith effort to attend all such meetings. Council members shall notify the Mayor or the City Clerk if they will be absent from a meeting.

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

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

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

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

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

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

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

5.5 Reimbursement. City Councilmembers may be reimbursed for expenses for travel to and lodging at conferences or meetings related to their role as a 431
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5 Councilmember as stated in the Elected Officials’ Compensation Program, as may be amended from time to time ( Exhibit A). Any additional expenses that fall outside the scope of this policy may be reimbursed only if approved by the City Council, at a public meeting before the expenses are incurred. Any request for reimbursement of expenses shall be accompanied by an expense form and receipts to document the expenditure. These documents are public records subject to disclosure under the California Public Records Act. Councilmembers shall be eligible to receive City- issued hardware and software for the conduct of official business pursuant to the Council Technology Policy (Exhibit B).

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

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

6. Relationship with City Staff

6.1 Incorporation of Municipal Code by Reference. Cupertino Municipal Code Chapter 2.17 (Exhibit D) governs the City Council’s relationship with the City Manager and their staff under the Council- Manager form of government. To the extent that the provisions of Chapter 2.17 are not set below, they are incorporated by reference into this Manual.

6.2 Council/Manager Form of Government. Under the Council/Manager form of government, the City Council sets policy direction as the direct representatives of the community with the City Manager providing the professional expertise to manage the organization and carry out the Council' s direction. The City Manager is responsible for carrying out the Council's policy direction through the day-to-day management of City functions, including the oversight of City 432
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6 operating departments. Neither individual Councilmembers nor the Council as a whole shall interfere with the City Manager’ s performance of the administrative duties conferred upon them in Cupertino Municipal Code section 2.28.040.

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

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

6.4 Individual Councilmember Influence on Staff Decisions Prohibited.

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

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

6.6 Councilmember Access to Information. City Councilmembers have free access to the flow of any information related to the operation of the City. The City Manager shall ensure that such information is communicated by staff in full and with candor to the Council. City staff will make every effort to respond in a timely and professional manner to all requests made by individual council members for information or assistance, provided that, in the judgment of the City Manager, the request is not of a magnitude either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council, based 433
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7 on the guidelines set forth in Cupertino Municipal Code section 2.17.043. The City Manager shall place requests that impose a significant workload on staff on the Council agenda for review by the full Council, along with a statement from that Councilmember as to why the information is needed. No Councilmember shall circumvent the City Manager’s direction regarding a request for information by seeking information through a Public Records Act request.

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

7. Agendas and Staff Reports

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

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

7.3 Agenda Item Descriptions. Each agenda item shall include a brief general description of the matter to be discussed ( approximately 20 words in length), including any action that may be taken under the California Environmental Quality Act, and should generally include the recommendation of the City Manager.
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8 7.4 Staff Reports. Staff reports should include the following sections:

1. Subject

2. Recommended Action

2. Reasons for Recommendation

3. Sustainability Impact

4. Fiscal Impact

5. California Environmental Quality Act

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

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

8. Meeting Procedures

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

8.2 Rules of Order. City Council meetings shall be governed by Rosenberg’ s Rules of Order except as otherwise provided by this Manual. Unless otherwise required by state law or City ordinance, decisions of the Council shall be made by a majority of members present and voting. The Mayor may impose additional reasonable procedural rules not inconsistent with Rosenberg’ s Rules 435
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9 of Order and the provisions of this Manual, unless objected to by a majority of Councilmembers present.

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

1. Call to Order

2. Pledge of Allegiance

3. Roll Call

4. Closed Session Report

5. Ceremonial Items

6. Postponements and Orders of the Day

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

8. Consent Calendar

9. Public Hearings

10. Action Calendar

11. Items Removed from the Consent Calendar

12. Council Reports and Comments

13. City Manager Report

14. Oral Communications (continued)

15. Informational Items

16. Council and Staff Comments and the Future Agenda Items

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

8.4 Consent Calendar.

8.4.1 Adding Item to Consent Calendar. The Mayor, the City Manager, the City Attorney, or the City Clerk may recommend that items appearing on the agenda be placed on the consent calendar for action by the City Council. All items placed on the consent calendar shall appear together on the agenda with the recommendation as to the action to be taken by the City Council with respect to such item. Upon the motion of any member of the City Council, all items placed upon the consent calendar 436
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10 may be acted upon together, and each shall be deemed to have received the action recommended.

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

8.5 Public Comment. An opportunity for public comment shall be provided for the consent calendar, each other agenda item under consideration, and, during regular meetings, on any matter that is within the subject matter jurisdiction of the City Council. The Mayor may consolidate public comment for related agenda items, subject to overruling by a majority vote of the Council. Nonagenda matters ( including Council and staff reports and informational items) may be addressed by the public during oral communications. Members of the public wishing to speak regarding an item shall submit a request to comment to the Clerk (“blue card”) or, where applicable, raise their hand in Zoom within nine minutes of the time the Mayor opens public comment or prior to the close of public comment on the item, whichever is earlier. Each individual speaker will ordinarily have up to three minutes to address the Council. If a speaker representing five or more members of the public in attendance and wishing to comment on the item but electing not to speak, the speaker may have up to 10 minutes to address the Council. Consolidation of time among speakers is not otherwise allowed. If a large number of speakers wish to address Council on an item, the Mayor may reduce the time allotted to each speaker consistent with the Brown Act. Twice the speaking time will be provided to any member of the public who uses a translator.

8.6 Communications with Members of the Public. The City Council may ask questions of speakers providing public comment but should avoid an extended discussion with members of the public during meetings. Additionally, when a member of the public provides comments regarding a matter that is not on the agenda, Councilmembers may ( 1) refer the speaker to staff; ( 2) refer the speaker 437
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11 to appropriate reference material; (3) request that staff report back at a future meeting; or (4) request that staff place the item on a future agenda.

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

8.7 Conduct of Meetings

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

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

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

8.8 Discussion and Deliberation

8.8.1 Ex Parte Contacts. Councilmembers shall disclose any ex parte communications prior to deliberation on a quasi- judicial matter. A quasijudicial matter is typically a hearing in which the City Council hears evidence and makes findings of fact to reach a conclusion based on the applicable law. An ex parte communication occurs when a Councilmember hearing a quasi- judicial matter communicates directly or 438
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12 indirectly with any person or party in connection with a matter before the Council, without notice and the opportunity for all parties to participate.

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

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

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

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

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

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

8.8.6 Role of the Mayor. The Mayor has the responsibility for controlling and expediting the discussion of an agenda item. It is the duty of the Mayor to 439
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13 keep the subject clearly before the Councilmembers, to rule out irrelevant discussion, and to ensure civil discussion among Councilmembers.

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

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

1. Open Public Hearing

2. Staff Report ( preferably 10 minutes)

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

4. Questions from the Council

5. Public comment

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

7. Close Public Hearing

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

1. Open Public Hearing

2. Staff Report ( preferably 10 minutes)

3. Appellant’s statement (preferably 8 minutes)

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

5. Questions from the Council

6. Public comment

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

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

9. Close Public Hearing

10. City Council discussion and vote
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14 8.11 City Council Recess Period. The City Council recess period shall begin the first Tuesday in August at 12:00 a.m. and end the Tuesday following Labor Day at 12:00 a.m. During any recess period, the City Manager is authorized to take such ministerial actions for matters of operational urgency, including such emergency actions as are necessary for the immediate preservation of the public peace, health, or safety, as would normally be taken by the City Council during the period of recess, except for those duties specifically reserved to the Council by law. This authority extends throughout the period of recess established by the City Council and includes the authority to execute agreements and make expenditures necessary for the exigent operational matters. The City Manager shall make a full and complete report to the City Council at its first regularly scheduled meeting following the period of recess of actions taken by the City Manager pursuant to this section, at which time the City Council may make such findings as may be required to ratify the actions of the City Manager. Nothing in this Section prevents the City Council from calling a special meeting during the recess period.

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

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

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

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

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

ELECTED OFFICIAL CLASSIFICATIONS:

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

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 2

SALARY SCHEDULE
As rates of pay are set forth under the Cupertino Municipal Code 2.16.020, and hereby adopted by action of the City Council, so are those rates of pay included herein as a part of this Compensation program. The inclusion herein of said rates and schedules does not affect any effective dates or otherwise reflect on the approval processes required but is shown as an integral part of this Program for completeness of record.

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

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 3

TRAINING AND CONFERENCES
I. POLICY
It is City of Cupertino policy that members of the City Council and the Council’ s commissions and committees, shall be reimbursed or receive a direct advance according to the schedules, terms and conditions as set forth herein for the expenses authorized below. This policy is established in accordance with California Government Code Sections 53232. 2 and 53232. 3.

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

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

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

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

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

5. Attending City events;

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

1. The personal portion of any trip;

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

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

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

5. Gifts of any kind for any purpose;

6. Alcoholic beverages;

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

8. Personal losses incurred while on City business.

IV. BUDGETARY LIMITATIONS
Reimbursement or advancement of expenses shall not exceed budgetary limitations.

Changes in appropriations will be done through the budget process.

V. REIMBURSEMENT AND ADVANCE SCHEDULE
A. Intent
This schedule is written with the intent that the City Councilmember, commissioner, or committee member will make every effort to find the lowest possible cost to the City for traveling on City business. For example, if paying for parking at the airport is less expensive than paying for a taxi or airport shuttle, then officials should drive their car and park at the airport; or if renting a car is lower than taking taxis at the out of town location, then a car should be rented. Air reservations should be booked in advance to obtain discounted fares. The following procedures apply whether the expense is being paid through a reimbursement or a direct advance.
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5 B. Local Area
The local area is defined to be within Santa Clara and San Mateo Counties and within a 40 mile distance from Cupertino when traveling to Alameda County.

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

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

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

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

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

Where lodging is necessary for an activity that is not related to a conference or other organized educational activity, reimbursement or advances shall be limited to the actual cost of the room at a group or government rate. In the event that a group or government 446
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6 rate is not available, lodging rates that do not exceed the median price for lodging for that area and time period listed on travel websites like www.hotels. com, www.expedia. com or an equivalent service shall be eligible for reimbursement or advancement.

F. Meals

1. No Conference
The actual cost of a meal can be claimed, within a standard of reasonableness, but receipts must be kept and submitted for the expense incurred.

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

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

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

An accounting of expenses and return of any unused advance must be reported to the City within 30 calendar days of the official’ s return on the expense report described in Section VII.
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7 VII. EXPENSE REPORT REQUIREMENTS
All expense reimbursement requests or final accounting of advances received must be approved by the City Manager or Department Head, on forms determined by the Finance Department, within 30 calendar days of an expense incurred, accompanied by a business purpose for all expenditures and a receipt for each item other than mileage. The report will be a public record subject to disclosure under the Public Records Act.

VIII. REPORTS TO CITY COUNCIL OR COMMISSIONS
At the next regular City Council or commission meeting, each councilmember or commissioner shall briefly report on publicly noticed meetings attended at City expense.

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

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

Revised 7/83, 7/85, 7/87, 7/88, 7/91, 7/92, 12/07, 7/10 448
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8 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 4

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

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

ASSOCIATION MEMBERSHIPS AND

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

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

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

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

PROGRAM
Policy No. 7

HEALTH BENEFITS PLAN CITY

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

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

Effective
January 1, 2020
City Max Health
Contribution
City Max * Dental
Contribution
City Total Max
Contribution
Employee 848.87 126.78 975.65
Employee + 1 1,443.09 126.78 1,569.87
Employee + 2 1,876.01 126.78 2,002.79
January 1, 2021 City Max Health
Contribution
City Max * Dental
Contribution
City Total Max
Contribution
Employee 891.32 126.78 1,018.10
Employee + 1 1,515.24 126.78 1,642.02
Employee + 2 1,969.81 126.78 2,096.59
January 1, 2022 City Max Health
Contribution
City Max * Dental
Contribution
City Total Max
Contribution
Employee 935.88 126.78 1,062.66
Employee + 1 1,591.01 126.78 1,717.79
Employee + 2 2,068.31 126.78 2,195.09
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11 Dental Coverage: Effective the first month after Council adoption of MOU, dental coverage is capped at $2,500.00 per dependent per annual plan year for the term of this contract.

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

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

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

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

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 10

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

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

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

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 11
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CONTRIBUTION
A. Council Members occupying office on or before December 29, 2012 Only:

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

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

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

For Council Members hired on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations only the City has contracted with CalPERS for a 2.0% @ 60 retirement formula, three year average compensation
Effective January 1, 2017, the City shall not pay the employee’ s contribution rate to the California Public Employees Retirement System ( CalPERS) and each employee shall pay the full 7% of applicable salary of the employee’ s contribution towards CalPERS.

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

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

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

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

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

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

ELECTED OFFICIALS COMPENSATION PROGRAM
Policy No. 14

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

Adopted by Action of the City Council
July, 2013
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ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 17
VISION INSURANCE – CITY CONTRIBUTION
It is the policy of the City of Cupertino to provide vision insurance under which employees and their dependents may be covered.

The premium cost for the insurance provided by the City shall not exceed $ 14.94 per month per employee. Enrollment in the plan or plans made available pursuant to this policy shall be in accordance with the provisions of the contract between the City and carrier or carriers providing vision insurance coverage, Adopted by Action of the City Council
July, 2013
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18 City of Cupertino
ELECTED OFFICIALS’ COMPENSATION PROGRAM
Policy No. 18

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

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

Technology Provision
To facilitate communications with citizens, staff and other Councilmembers, each Councilmember may elect to be issued the following technology hardware at the beginning of each term.
1 Laptop
1 Docking Station
1 Monitor
1 Webcam
1 Keyboard & Mouse
1 Phone with Voice/ Data Plan
Each Councilmember’ s issued laptop will have the following additional software applications:

Office productivity platform, e.g., Microsoft O365
Cybersecurity Tools, e.g.., end point protection and multifactor authentication Video Conferencing, e.g., Zoom
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19 Each Councilmember’ s issued phone will have the following additional software applications
Office productivity platform
Cybersecurity Tools
Video Conferencing
Issued technology hardware and software will meet current City hardware and software standards to ensure proper security, maintenance, and support.

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

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

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

City Support
Innovation & Technology staff are solely responsible to provide technical support and maintenance for issued equipment and may be reached at helpdesk@cupertino. org or 408) 777 3381. If required, Councilmembers shall bring their equipment to City Hall for repair and/ or service.

Adopted by Action of the City Council
July, 2019, January, 2023
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20 City of Cupertino
City Council
and
Planning Commission
Compensation
Effective January 1, 2017
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21 CITY OF CUPERTINO CITY COUNCIL

AND PLANNING COMMISSION
EFFECTIVE January 1, 2017
The salaries, wages or rates of pay for members of the City Council and Planning Commission are set forth below. Only the City Council can modify these rates.

Members of the City Council $ 737.54/ month
Members of the Planning Commission* $ 50.00/ meeting ( maximum $ 200 monthly) Effective first full pay period in July 2017
Members of the City Council $ 743.07/month
Members of the Planning Commission* $ 50.00/meeting ( maximum $ 200 monthly) Benefits as set forth in this document do not apply to members of the Planning Commission.
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Council
Technology
Policy
Citywide Policy Manual
Policy #
Attachments:

N/A
Effective Date:

December 12, 2022
Responsible Department:

Innovation & Technology
Related Policies & Notes:

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

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

Technology Provision
To facilitate communications with citizens, staff and other Councilmembers, each Councilmember may elect to be issued the following technology hardware at the beginning of each term.
1 Laptop
1 Docking Station
1 Monitor
1 Webcam
1 Keyboard & Mouse
1 Phone with Voice/Data Plan
Each Councilmember’ s issued laptop will have the following additional software applications:

Office productivity platform, e.g., Microsoft O365
Cybersecurity Tools, e.g.., end point protection and multifactor authentication Video Conferencing, e.g., Zoom

EXHIBIT B
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Each Councilmember’ s issued phone will have the following additional software applications
Office productivity platform
Cybersecurity Tools
Video Conferencing
Issued technology hardware and software will meet current City hardware and software standards to ensure proper security, maintenance, and support.

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

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

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

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

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

Submitted By: Approved By:

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

Date: December 11, 2022 Date:
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Vote
AYES:

NOES:

ABSENT:

ABSTAIN:

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

EXHIBIT C
RESOLUTION NO. 07-103

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO

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

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

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 5th day of June 2007, by the following vote:
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2 3
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This report is intended for the internal use of the City of Cupertino, and may not be provided to, used, or relied upon by any third parties.

FINAL REPORT
City of Cupertino

ENTERPRISE LEADERSHIP ASSESSMENT
July 14, 2023
Moss Adams LLP
999 3rd Ave, Suite 2800
Seattle, WA 98104
(206) 302-6500
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Enterprise Leadership Assessment

FOR INTERNAL USE OF THE CITY OF CUPERTINO ONLY
Table of Contents
Executive Summary 1
A. Background, Scope, and Methodology 1
B. Summary of Observations and Recommendations 1
Background, Scope, and Methodology 5
A. Background 5
B. Scope and Methodology 5
Observations and Recommendations 7
A. City Council 7
B. Commissions and Committees 22
C. City Staff 29
Appendix A: Commission and Committee Selection Criteria 34 469
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EXECUTIVE SUMMARY
The City of Cupertino (the City) is governed by a five-member City Council and managed by the City’s executive leadership team. As part of Moss Adams LLP’s (Moss Adams, we) role as the City’s outsourced internal auditor, we developed this assessment to evaluate the effectiveness of the City’s management and governance collaboration framework and provide recommendations to strengthen and streamline procedures to align with best practices for municipal leadership. As part of this work, we evaluated governance topics including:
• The Council’s capacity to set the City’s strategic direction and monitor financial sustainability • Council meeting procedures and resources
• Working relationship and collaboration between Council members, City management, and staff • Training and onboarding
• Committee and commission roles, core function, and support This assessment was conducted between March 2023 and June 2023. Analysis was informed by interviews with the City’s leadership and staff, and a review of data and documents provided by the City.

The goal of this report is to detail current conditions and provide constructive and forward-looking recommendations for how the City’s leadership team can adjust operations to align with public sector best practices.

Observations and recommendations were grouped into three areas: City Council, Commissions and Committees, and City Staff. Observations and recommendations for both areas are summarized below and provided in Section III.

OBSERVATIONS AND RECOMMENDATIONS
City Council

1. Observation
While the City has established many policies that are aligned with best practices, there are opportunities to increase the effectiveness of current policies.

Recommendations
A. Continue current efforts to review, update, and expand the City’s governance policies, including the Ethics Policy and Commission Handbook.

B. Establish a process to ensure all governance policies are reviewed at least once every five years.
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OBSERVATIONS AND RECOMMENDATIONS

2. Observation
With the adoption of the City Council Procedures Manual and other recent changes, the City has made positive progress toward increasing the effectiveness of City Council meetings. However, ongoing challenges remain to ensure that meetings are productive and timely.

Recommendation Continue current efforts to implement the City Council Procedures Manual and hold meeting participants accountable.

3. Observation There is a well-documented history of mistrust and poor communication between the Council and management.

Recommendations
A. Continue current efforts to implement recommendations from the 2023 Internal Review, with a focus on expanding the use of 1:1 pre-meetings with Council members
B. In alignment with Municipal Code guidelines, consider developing and implementing a set of practical criteria to determine when requests for information will require a significant allocation of staff time or otherwise exceed the code guidelines.

C. Continue current efforts to clarify roles and responsibilities and build productive working relationships by providing regular governance trainings and retreats.

4. Observation
The City Council onboarding and orientation process has recently been updated to increase its effectiveness. This process could be further strengthened by focusing additional attention on roles, responsibilities, and practical application of guidelines.

Recommendation Take steps to expand and strengthen the orientation process for new Council members.

5. Observation The City has established many best practice elements of a comprehensive ethics program. However, there are gaps in the City’s compliance enforcement.

Recommendation Strengthen internal processes for tracking and holding elected and appointed individuals accountable to timely completion of Form 700 Disclosures.

6. Observation
A core function of any governing body is to set and monitor the strategic direction of the organization. While the City Council has adopted a two-year Work Program to prioritize annual initiatives, it has not yet developed a longrange strategic plan.

Recommendations
A. Consider developing a long-range strategic plan to increase the City’s ability to strategically plan and advance initiatives.

B. Continue current efforts to utilize and refine the annual Work Program prioritization practice.

C. Consider expanding the City’s reporting processes to more effectively track progress toward strategic goals over time.
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OBSERVATIONS AND RECOMMENDATIONS

7. Observation
While the City has established some strong community engagement practices, interviewees noted that Council members may have an overreliance on anecdotal evidence and/or public comment that may not be representative of the wider community perspective.

Recommendations
A. Consider setting clearer expectations for the intended scope of community engagement at the start of City initiatives.

B. Continue current efforts to implement a statistically significant, representative community survey.

C. Consider providing media and crisis communication training to all Council members.

Commissions and Committees

8. Observation
The City utilizes multiple commissions and committees to support Council decision-making. There are opportunities to increase the effectiveness of some of these groups.

Recommendations
A. Establish charters, including clear roles and responsibilities, for each commission and committee that outline the group’s purpose and member roles and responsibilities.

B. Review additional opportunities to streamline governance groups.

C. Consider reviewing the names of governance groups to introduce a consistent naming convention for commission versus committee.

9. Observation
The City has documented processes to select and appoint community members to governance groups. This process could be strengthened by adding relevant qualification criteria.

Recommendation Review and establish the qualification criteria for each commission and committee member to determine if the City would benefit from adjustments.

10. Observation Commission and committee operations—including onboarding, meeting procedures, work plans, and reporting—are not always consistent or effective.

Recommendations
A. Continue efforts to expand and formalize onboarding and training expectations for both commissions and committees.

B. Clarify the process and expectation for cancelling unnecessary meetings.

C. Consider adopting the practice of requiring annual work plans for each commission and committee.

City Staff

11. Observation The staff time used to support governance groups represents a significant investment of City resources.

Recommendations
A. Review the practice of requesting department directors attend commission and committee meetings.

B. Provide training for staff liaisons annually and when a new individual takes on the liaison role.
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OBSERVATIONS AND RECOMMENDATIONS

12. Observation
City staff continue to experience a high degree of organizational change and uncertainty. Within this context, it is critical for the City’s management team to provide active communication and change management to increase support of staff.

Recommendation Identify and implement expanded communication and change management practices to improve workplace culture.
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BACKGROUND, SCOPE, AND METHODOLOGY
In recent years, the City has experienced significant organizational change and uncertainty. In particular, there has been both a high turnover rate in key leadership positions within the City and ongoing turmoil in relation to the Council/staff relationship. Two highly publicized reports have documented related issues:
• The 2022 Santa Clara County Civil Grand Jury report A House Divided: Cupertino City Council and City Staff (referred to throughout this document as the 2022 Grand Jury report) • The 2023 Review of Outstanding Issues and Concerns Raised by the Findings and Recommendations of the 2022 Santa Clara Civil Grand Jury Report (referred to in this document as the 2023 Internal Review)
Within this context, City leadership expressed interest in an assessment that could both detail current conditions and provide constructive and forward-looking recommendations for how the City’s leadership team can adjust operations to align with public sector best practices.

Moss Adams serves as the outsourced internal auditor for the City, and reports to the City Council’s Audit Committee. As part of the 2022–23 internal audit work plan, the Audit Committee approved this Enterprise Leadership Assessment.

The purpose of this assessment is to evaluate the effectiveness of the City’s management and governance collaboration framework and provide recommendations to strengthen and streamline procedures to align with best practices for municipal leadership. As part of this work, we evaluated governance topics, including:
• Council’s capacity to set the City’s strategic direction and monitor financial sustainability • Council meeting procedures and resources
• Working relationship and collaboration between Council members, City management, and staff • Training and onboarding
• Committee and commission roles, core function, and support Moss Adams conducted this engagement between March 2023 and June 2023. The project consisted of four major phases.

PHASE DESCRIPTION
1 Start-Up and
Management
 Project initiation consisted of collaborative project planning with the City and project management, including developing our scope of work and final work plan.
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PHASE DESCRIPTION
2 Fact-Finding and
Data Collection
 The second phase included interviews, document review, and best practice research. We worked with City staff to obtain the most current information and insights.
• Interviews: We conducted interviews with 23 members of City staff and City Council members.
• Document review: We received documents including policies, procedures, planning documents, reports, and others.
• Best practice research: Based on the opportunities for improvement identified, we conducted research to ascertain best practices within the public sector.
3 Analysis  Based on the information gained during our fieldwork phase, we assessed the current conditions and identified opportunities for improvement.

Leveraging best practice information and our own experience from working with similar entities, we developed practical recommendations. 4 Reporting Results  We communicated the results of our analysis with observations and recommendations presented first in a draft report that was reviewed with management to confirm the practicality and relevance of recommendations before finalizing the report.

We would like to thank City leadership and staff for their willingness to assist in this assessment. 475
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OBSERVATIONS AND RECOMMENDATIONS
Based on the input gathered from interviews, document review, focus groups, and comparisons to best practices, we prepared a comprehensive set of observations and recommendations.

1. Observation While the City has established many policies that are aligned with best practices, there are opportunities to increase the effectiveness of current policies.

Recommendation A. Continue current efforts to review, update, and expand the City’s governance policies, including the Ethics Policy and Commission Handbook.

B. Establish a process to ensure all governance policies are reviewed at least once every five years.

Best Practice
In addition to regulations and codes, many city councils have adopted formal rules of procedure to govern the conduct of their meetings and/or provide guidelines for collaboration. The motivation in adopting rules is usually to increase the efficiency and effectiveness of meetings, improve communication, and manage conflict. The basic premise in adopting rules is to ensure that governance group interactions will run smoothly and follow a generally accepted format.

These types of city council policies often cover the following categories:
• Code of conduct, ethics, or group norms
• Council meeting processes and agenda development
• Council communications with staff
• Council communication with members of the public
• Use of technology
• Conflict of interest
• Committees and commissions-specific topics
○ Purpose and relationship to City Council
○ Selection and appointment
○ Meeting processes and agenda development
○ Planning and reporting
Current Conditions
The City has adopted several governance-related policies, including the primary documents detailed below.
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City Council Procedures Manual
In February 2023, the City Council adopted Resolution 23-021 to establish the Cupertino City Council Procedures Manual. In alignment with best practice, the manual include guidelines for many processes, including communication, meeting management, decorum, and decision-making. The manual also incorporates references to the applicable sections of the Municipal Code to provide administrative guidelines to comply with relevant provisions. Interviewed staff generally noted that the Procedure Manual is a welcome improvement. However, the usefulness of this document is highly dependent on whether City Council adheres to the practices described within.

Ethics Policy
The City’s current Ethics Policy applies to City Council, appointed officials, and City staff with the purpose of promoting public confidence in the integrity, effectiveness, and fairness of City operations.

However, as noted in the 2022 Grand Jury report “the current Ethics Policy is less comprehensive [than previous versions] and ignores the subject of councilmanic interference found in the rescinded version. Thus, there are significantly fewer ethical requirements and standards for councilmembers.” The new City Council Procedures Manual strives to address this issue by stating that “City Council may enforce repeated or serious violations of the rules set forth in the Manual through a censure action placed on a Council agenda." At this time, the City Council is planning to consider revising the Ethics Policy in the first quarter of fiscal year 2024.

While the Ethics Policy references conflicts of interest, the City has not established a separate conflicts of interest policy.

Technology Use
The City adopted a Technology Use Policy in November 2018. The policy applies to City employees, elected officials, commissioners, contractors, consultants, temporary workers, interns, volunteers, and vendors using City technology resources. In alignment with best practice, the policy covers a range of topics, including cybersecurity, the California Public Records Act, confidentiality, prohibited use of technology, and violations. However, the policy has not been updated since 2018 and contains some outdated information (like a reference to pending litigation).

Commission Handbook
The City established a Commission Handbook in 2021 to provide guidance to the City’s various commissions and committees. In alignment with best practice, the handbook builds off of the tenets laid out in the municipal code and covers a range of topics, including commissions’ purpose and relationship to City Council, management, and staff, as well as commission membership, meeting processes and agenda development, and communications. However, this handbook has not been reviewed for alignment with the new City Council Procedures Manual and it is unclear whether it applies to committees.

At this time, the City Council is planning to consider revising the Commission Handbook in the first quarter of fiscal year 2024.
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Policies and Guidelines on Sister Cities, Friendship Cities, and International Cupertino Delegations for the City Of Cupertino
The City has established a policy to help guide activities around Sister Cities, Friendship Cities, and international delegations. The document outlines travel and expense guidelines for Council members who are supporting these programs. However, the City has not yet developed a general travel and expense policy for Council members.

Recommendations
• Continue current efforts to update governance policies, including:
○ Reviewing the Ethics Policy to ensure it aligns with best practice. ○ Reviewing the Commission Handbook to ensure it is aligned with other City policies, including the City Council Procedures Manual and the Ethics Policy. As part of this work, it will be important to clarify whether this handbook is relevant to City committees. ○ Considering developing a standalone conflict of interest policy that applies to Council members.
○ Considering developing a general travel and expense policy that applies to Council members. • Adopt a process to review and update governance-related policies at least once every five years. • Continue efforts to implement the City Council Procedures Manual and hold participants accountable to the policies and procedures. See the Meeting Cadence and Processes section for more details.

2. Observation With the adoption of the City Council Procedures Manual and other recent changes, the City has made positive progress toward increasing the effectiveness of City Council meetings. However, ongoing challenges remain to ensure that meetings are productive and timely.

Recommendation Continue current efforts to implement the City Council Procedures Manual and hold meeting participants accountable.

Best Practice
City council meetings play a crucial role in local governance, where elected officials convene to make decisions, address community concerns, and shape the future of their cities. Establishing best practices for meeting cadence and processes is essential to ensure efficiency, transparency, and effective decision-making. By following best practices, city councils can foster an environment that allows for informed discussions and ultimately leads to better outcomes for their communities:1,2 In general, best practices for effective public meetings include:
1 Planning and Leading Effective Meetings, NLM
2 Guide to Good Meetings, ICMA
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• Established Procedures: The city should set clear procedures for meeting structure, agenda, decision-making, conflict resolution, and use of a consent agenda. • Reasonable Cadence and Length: Meetings should be held as frequently as needed to accomplish critical work. Research indicates that shorter meetings are generally better meetings, as it becomes more difficult to maintain focus over time. • Effective Meeting Facilitation: Meetings should be led by skilled facilitator, such as the mayor or chair, to manage discussions, maintain decorum, and ensure efficient use of time. Encourage respectful and constructive dialogue among council members and establish clear rules and protocols for productive meetings.
• Preparation and Pre-Meeting Communication: Meeting participants (e.g. council, commission, or committee members) should be provided with sufficient time to review meeting materials in advance. Distribute agendas, reports, and supporting documents to allow for thorough preparation, informed discussions, and informed decision-making. Within the public sector space, 1:1 preparation meetings with management are frequently used to provide elected officials with time to ask questions and understand issues before a public meeting is held. • Engaged Participants: Meeting participants should be able to actively engage with the meeting content and respond to feedback. They should employ professionalism and follow any codes of conduct or group norms.
• Technology and Accessibility: Technology should be leveraged to enhance meeting accessibility and public engagement. Explore options for live streaming, video conferencing, or online comment submission to enable broader community engagement, especially for those unable to attend in person.

Current Conditions
In alignment with best practice for establishing procedures, the City recently adopted the City Council Procedures Manual. The manual documents processes for key items like decision-making, agenda development, decorum, communication with staff, and use of a consent calendar.

Despite the implementation of the manual, interviewed staff reported that meeting efficiency and effectiveness remains a high area of concern. Staff note that time limits are not always enforced, there is little group consensus about discussion priorities (so items with relatively minimal impact may take up significant discussion time), and items are routinely removed from the consent agenda for additional discussion.

Within this context, staff noted that agenda items were frequently bumped to the next meeting. As a result, staff reported the common experience of sitting through hours of a meeting and not being able to present their agenda item—which is both a waste of staff resources and a challenge to employee morale. To help combat this issue, the new City Council Procedures Manual has established time limits for discussion items and questions. Interviewed staff noted that this was a step in the right direction, but ongoing challenges remain.

In terms of the frequency and length of meetings, the number of City Council meetings has been high in recent years, with 63 meetings held in 2021 and 64 in 2022. Council meetings have also historically extended into late hours. Between 2020 and 2022, the average length of Council meetings was over five hours (5.1 hours in 2020, 5.7 hours in 2021, and 5.2 hours in 2022). Given that meetings start at 6:45 pm, this means that participants were routinely in meetings that ran past midnight. Long meeting lengths impact the productivity, wellness, and safety of the Council members, staff, and community participants.
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The City Attorney and the Mayor play significant roles in ensuring that the meeting agenda is adhered to and that Council conversation does not stray off topic or relitigate decisions that have already been made. Interviewees noted appreciation for the City Attorney’s and Mayor’s efforts in this area.

In alignment with best practice and regulations, the City provides agenda materials at least six days before standard Council meetings. Council members have the opportunity to ask questions through email between the time the agenda is posted and when the meeting is held. Staff responds to these questions by way of an addendum or desk item to the staff report. In addition, the City management team has expanded the practice of offering 1:1 preparation meetings to City Council members. While individual City Council members must voluntarily opt into these meetings (and Council members do not always choose to do so), staff and some members of Council report that these meetings are effective in terms of increasing communication and collaboration.

In alignment with best practice, the City provides live broadcast and on demand coverage of city meetings. In addition, members of the public may provide comments in-person, online, or via telephone.

Recommendations
• Continue current efforts to implement the City Council Procedures Manual and hold participants accountable to the policies and procedures. This will require ongoing and concerted effort on the part of the Mayor, members of City Council, City Attorney’s Office, City Clerk, and City Manager’s Office. In particular, City staff should continue to provide the Mayor with active support to ensure the Mayor is well positioned to keep meetings on track. • Continue current efforts to provide 1:1 pre-meetings between individual Council members and management for upcoming council agenda items. See the Collaboration and Relationships section for more details.

3. Observation There is a well-documented history of mistrust and poor communication between the Council and management.

Recommendation A. Continue current efforts to implement recommendations from the 2023 Internal Review, with a focus on expanding the use of 1:1 premeetings with Council members B. In alignment with Municipal Code guidelines, consider developing and implementing a set of practical criteria to determine when requests for information will require a significant allocation of staff time or otherwise exceed the code guidelines.

C. Continue current efforts to clarify roles and responsibilities and build productive working relationships by providing regular governance trainings and retreats.
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Best Practice
City council collaboration, productive group dynamics, and trust in management are vital aspects of effective local governance. The following are characteristics that are commonly found in high-function governance teams: 3,4
• Defined Roles and Responsibilities: Clearly defined roles help council members and staff avoid confusion, ensure accountability, and enables efficient collaboration. For cities like Cupertino that have chosen to operate under the Council-Manager form of government, operational responsibilities are delegated to the City Manager from City Council, while City Council is responsible to guide the strategic direction of the organization by setting policy, providing oversight, and supporting City staff.5
• Mutual Respect: Mutual respect and professionalism are baseline requirements for healthy working relationships. This behavior is characterized by open communication, active listening, adherence to codes of conduct or group norms, respect for roles, appreciation for diverse viewpoints, active preparation, and commitment to working in collaboration to move the organization toward its goals.
• Clear Communication: Focused, concise, and direct communication can provide a strong foundation for building trusting and productive relationships. • Collaboration with Staff: Productive relationships between council and staff often begin with respecting roles, recognizing individual expertise, and showing support for city employees.

Current Conditions
As reported by staff and Council members, and documented in both the 2022 Grand Jury report and the City’s subsequent 2023 Internal Review, there are varying opinions within City Council about the ultimate role that Council members are meant to play. For example, it is apparent that some Council members perceive the oversight role to encompass highly operational work, like conducting independent research or analysis. This type of behavior both causes tension with staff as it is a clear signal that their expertise and work is not trusted; it is also a poor use of time and ultimately a distraction from the more critical work of the Council. While oversight is a critical component of good governance, it must be predicated on a baseline trust that the City Manager has hired competent and qualified staff to perform operational functions.

In alignment with best practice, City management does provide training related to roles and responsibilities to help onboard new members of City Council. See the City Council Onboarding and Training section for more details.

In regard to mutual respect, there is a well-documented history of mistrust and conflict between Council and management. While interviewed staff report some positive progress in recent months, there are still regular challenges in terms of professionalism, respect, and positive intent. There is a strong need to rebuild trust within the Council and between the Council and management.

In terms of communication, one of the most frequently cited ongoing challenges is related to email requests from Council members. As documented in the 2023 Internal Review and reported by interviewed staff, several Council members have continued the practice of sending a high volume of 3 Building the Best Relationship with Your Council, ICMA 4 Strategies for creating a more collaborative, effective council, Western City. 5 Making it Work: The Essentials of Council-Manager Relations, ICMA 481
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emails, averaging 50-70 initial emails per week, not counting any follow-up emails. This practice is ineffective for communication purposes, creates significant workload for staff, and is widely perceived to be an obstruction tactic. Council members at times request responses to questions posed by the public as if they were the Council members’ own. This pass-through of information requests without vetting creates work efforts where it may not be effective or even considered in the decision-making process.

The City’s Municipal Code provision § 2.17.043 clarifies that the City Manager may determine when individual council member requests are overly onerous (and thus should be directed to staff through a collective instruction from the entire City Council). The code states that the following guidelines should be considered when making this judgement:

A. Is the request specific and limited in scope so that staff can respond without altering other priorities and with only minimal delay to other assignments? B. Is the request a "one time" work requirement, as opposed to an on-going work requirement? C. Does the response to a request require a significant allocation of staff resources (generally defined as consisting of more than one staff person, or a single staff person working on the request in excess of two hours)?
However, staff report that it has been challenging to exercise these guidelines in a practical, consistent, and productive way.

Several interviewed staff noted that it has been extremely challenging to accomplish operational work given the number of staff hours required to respond to these requests, in addition to preparing staff reports and materials for regular Council meetings. As noted in the Meeting Cadence and Processes section, the City management team has expanded the practice of offering 1:1 preparation meetings to City Council members as an option for more efficient and direct communication.

In alignment with best practice, the City has implemented City Council retreats as an opportunity for ongoing relationship building and professional development.

Recommendations
• Moss Adams concurs with the recommendations to improve collaboration made within the 2023 Internal Review. In particular, the City and individual councilmembers should continue efforts to utilize the 1:1 meetings as a more efficient means of sharing information. • In alignment with the City’s Municipal Code provision § 2.17.043, the City Manager should consider developing a set of practical criteria to determine when individual Council member requests for information exceeds standard guidelines as outlined in the code. Ideally, this type of criteria could provide a consistent, objective, and efficient means to evaluate incoming requests. • Continue current efforts to clarify roles and responsibilities and build productive working relationships by providing regular governance trainings, retreats, and strategic planning work sessions.
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4. Observation The City Council onboarding and orientation process has recently been updated to increase its effectiveness. This process could be further strengthened by focusing additional attention on roles, responsibilities, and practical application of guidelines.

Recommendation Take steps to expand and strengthen the orientation process for new Council members.

Best Practice
Onboarding, orientation, and training for new city council members are critical to their successful integration into their roles and the effective functioning of the council as a whole. By implementing a robust onboarding and training program, cities can equip new council members with the knowledge, skills, and resources needed to navigate their roles effectively. This contributes to a cohesive council, enhances decision-making, and strengthens the council's ability to serve the community.6 Comprehensive onboarding support typically involved the following components:
• Orientation Program: The organizations should develop a comprehensive orientation program to familiarize new council members with their roles, responsibilities, and the governance structure.

The program should address:
○ Overview of the council's purpose, functions, codes, and legal obligations ○ Insights into the local community's history, demographics, priorities, and challenges ○ Definition of roles and responsibilities of council members, including their specific duties, expectations, areas of focus, and understanding of how their role contributes to the overall work of the group
• Ethics, Policies, and Procedures Training: The organization should offer training on key policies and procedures that govern council operations. Guidance should be provided on meeting protocols, code of conduct, ethical standards, and conflict of interest guidelines. The organization should ensure that new council members understand their legal obligations, including compliance with relevant legislation and regulations.
• Financial and Budgetary Training: The organization should provide training on municipal budget processes, financial management, and fiscal responsibilities, and help council members understand the budgetary constraints, revenue sources, and expenditure allocation. The training should also familiarize them with financial reports, audits, and accountability mechanisms to ensure effective stewardship of public funds.
• Support from Staff or Liaisons: The onboarding process should be provided in collaboration with staff members or designated liaisons who can provide guidance and support to new council members. Ensure that staff are available to address questions, provide administrative assistance, and facilitate access to necessary resources or expertise. • Continuous Learning and Professional Development: Ongoing learning opportunities for council members should be provided to enhance their skills and knowledge in governance, leadership, 6 Making it Work: The Essentials of Council-Manager Relations, ICMA 483
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and effective decision-making. Encourage participation in workshops, conferences, and training programs that promote professional growth.

Current Conditions
In alignment with best practice, the City has established a two-day orientation program coordinated by the City Clerk’s Office. The program consists of several intensive sessions that cover topics including the Council’s core functions, roles and responsibilities, regulatory requirements (like Brown Act rules), meeting procedures, and a deep dive with department heads presenting on the purpose and mission of their respective departments. This work is collaboratively supported by the City Manager’s Office, City Attorney’s Office, City Clerk’s Office, and the department directors.

Interviewees noted several opportunities to continue to improve the onboarding process, including:
• Spacing out information so that new members are not fatigued by information overload over the course of a few days
• Providing refresher trainings throughout the year
• Providing peer-to-peer learning opportunities where new members can receive input and guidance from more veteran members
• Increasing practical examples and scenarios to help increase the practical applicability of the trainings
• Requesting full participation of all Council members (this year one member of council chose not to participate in the orientation)
In alignment with best practice, the City does offer opportunities for Council members to engage in ongoing professional development opportunities on an ad hoc basis.

Recommendations
• Continue to expand and strengthen the orientation process for new Council members. In particular, the City may benefit from extending the onboarding timeline, providing refresher trainings throughout the year, and adding scenario exercises to increase the practical applicability of trainings.

5. Observation The City has established many best practice elements of a comprehensive ethics program. However, there are gaps in the City’s compliance enforcement.

Recommendation Strengthen internal processes for tracking and holding elected and appointed individuals accountable to timely completion of Form 700 Disclosures.

Best Practice
The role of elected officials—and government as a whole—is to serve the public interest. When government representatives act ethically and avoid engaging in behavior that promotes any private 484
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interests, they are acting for the common good. To foster an ethical operating environment, it is common for cities to establish the following components:
• A Fraud, Waste, and Abuse Program, including an ethics hotline where members of the public and the city government can report issues for investigation • Disclosure of potential conflicts of interest (primarily accomplished via Form 700 within the state of California)
• Trainings and expert advice on government ethics (including topics like the Brown Act) • Processes to track and report on compliance with standard disclosures and regulations • Commitment from leadership to hold all parties accountable, including Council, Committee, and Commission members
• An ethics policy that applies to all elected and appointed officials, as well as staff Current Conditions
In alignment with best practice, the City has implemented the following:
• A formal Fraud, Waste, and Abuse Program and related ethics hotline was implemented in 2022. • The City provides required ethics and anti-harassment training for Council, Committee, and Commission members as required by state law, and the City Attorney provides expert counsel as needed. In addition, Council members are given the opportunity to participate in ethics education at League of Cities conferences.
• The City Clerk’s Office and City Attorney’s Office provide guidance to elected and appointed officials in filling out the Form 700 Disclosures and complying with other regulations.

Several interviewed staff reported that at least one Commission member had not filed their Form 700 Disclosure. While the City Clerk’s office has been aware of this issue for over a year and made efforts to correct the issue, it has not yet been resolved. This indicates that there are gaps in the current process to hold participants accountable for compliance in this area.

Recommendations
• Strengthen internal processes for tracking and holding elected and appointed individuals accountable to timely completion of Form 700 Disclosures and any other required documentation.

If governance group members have not completed this form in a timely manner, they should face disciplinary action up to and including removal from their position. • See the Policies and Procedures section for more details on the City’s Ethics Policy. 485
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6. Observation A core function of any governing body is to set and monitor the strategic direction of the organization. While the City Council has adopted a twoyear Work Program to prioritize annual initiatives, it has not yet developed a long-range strategic plan.

Recommendation A. Consider developing a long-range strategic plan to increase the City’s ability to strategically plan and advance initiatives.

B. Continue current efforts to utilize and refine the annual Work Program prioritization practice.

C. Consider expanding the City’s reporting processes to more effectively track progress toward strategic goals over time.

Best Practice
A core function of any governing body is to set and monitor the strategic direction of the organization.

Within this context, it is best practice for City leadership to develop a multi-year strategic plan and then select key priorities via a collaborative process between Council and management on an annual basis.7,8 By grounding work in the long-term vision for the community and core mission of City government, the City Council can ensure that resources are strategically allocated to support longterm success. In addition, strategic plans can help provide consistency of vision and direction—even as members of the Council or the management team exit the organization.

Typically, strong strategic plans are characterized by:
• Long-Term Vision: The organization should have a clear vision statement that captures the longterm aspirations for the community. Strategic plans also typically incorporate mission and value statements.
• Policy-Level Guidance from Council: The governing body should be actively involved in shaping the plan by setting high-level policy guidance and broad goals. Within this setting, the management team should be responsible for determining and implementing the best means to achieve these objectives.
• Public Input: The City serves the community, so planning activities should take the community’s needs into consideration. Seeking community input during the planning process is critical. • Annual Prioritization: All organizations have resource constraints. As such, realistic plans should prioritize activities in a clear order to help guide resource allocation. An annual review of goals and a process to prioritize work for the upcoming fiscal year ensures that work is guided by longterm strategies and responsive to emergent needs. • Link to Financial Data: Planning should be linked a long-range financial plan that forecasts revenue, identifies unfunded liabilities, determines long-term debt capacity, analyzes external economic environment, and determines the long-term impacts of priorities and goals.9 7 GFAO Strategic Planning
8 Strategic Planning Revisited, ICMA.
9 GFAO Planning Resource Center
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• Equity Considerations: Equity should be incorporated into every step of the strategic planning process to ensure that all members of the community are represented and have a voice in the process.
• Outcome-Based Key Performance Indicators: Strong plans include key performance indicators (KPIs) and metrics to measure progress and success. Ideally, KPIs are primarily focused on the ultimate outcomes the organization is hoping to achieve, rather than output measures of activities. With this type of tool, leadership can regularly monitor and evaluate the city's performance to track the achievement of strategic goals.

Current Conditions
The City does not currently utilize an organization-wide, long-range strategic plan that lays out a vision for the City and guides priorities, projects, and resource allocation. This is in part due to high turnover in the City Manager’s Office, which has limited organizational capacity to perform long-term strategic work. However, the City has adopted many related planning elements:
• Strategic Goals: In February 2020, the City Council established a number of strategic goals to provide a framework for City priorities and guide annual development of the Work Program— including Public Engagement and Transparency, Transportation, Housing, Sustainability, and Quality of Life.
• Annual Work Program: The City has established an annual Work Program process that identifies and selects priority projects and initiatives that fall outside the City’s regular operations for execution within the following year.
○ The Work Program document includes information about the project title, objective, estimated budget, allocated budget, and related department, commission, goal category, and General Plan Guiding Principles.
○ In the past, the Work Program has expanded to include a high number of unprioritized items.

To combat this issue, City management established a new facilitated prioritization process in 2023. This step is a significant improvement in terms of alignment with best practice. • Other Guiding Plans: In addition to the Work Program, the City has many individual plans for work that line up with many of the best practice criteria above. Examples include the General Plan, Capital Improvement Program, and Climate Action Plan.
• Financial Forecast: In alignment with best practice, the City has developed a 10-year financial forecast to address various expenditure and revenue components and assumptions. • Progress Reporting: In alignment with best practice, the City has developed a dashboard to transparently communicate progress toward completing the City’s Work Program projects. This is commendable. In addition, the City reports on department-specific KPIs as part of the budget process.

Based on staff interviews, staff reports, and a review of documentation there are several interconnected challenges or areas of misalignment with best practice in relation to the City’s planning environment:
• Given the lack of a long-range strategic planning framework, some staff noted that Work Program items and Council priorities are not always clearly linked with the City’s big-picture goals. In addition, many interviewees were not aware of the City’s 2020 strategic goals. This may indicate that this framework is not providing sufficient specificity and/or is not being widely utilized to guide decision-making.
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• City Council has a tendency toward more tactical and operational initiatives, rather than staying at the policy level to align the City with its vision. Ideally, the Council should be setting high-level goals and objectives and the management team should be responsible for determining the best means to accomplish the end.
• The City’s Work Program has sometimes created new ongoing programs without sufficient or identified resources to support them. This results in staff taking on additional workload without appropriate support. This indicates that planning activities are not sufficiently tied to resource allocation decisions.
• The Work Program does not explicitly incorporate equity considerations. This indicates that there may be blind spots in relation to the City’s understanding and approach to solving issues. • While public input has historically been actively solicited as part of the Work Program process, this step was forgone this year in order to tackle the backlog of critical work and make progress.

This is reasonable given the circumstances, but the City should reintroduce public input in the future.
• While the City reports on progress toward Work Program activities and includes KPIs in its budget, the organization has not yet established outcome-based performance measures to track progress toward high-level goals. As a result, progress reporting is often reliant on measures of activities or outputs—rather than focusing on the long-term outcomes that the City is hoping to create.

Recommendations
• Consider developing a long-range strategic plan—that builds upon the City’s current goals and vision—to increase the City’s ability to plan and advance initiatives. • Continue to utilize and refine the annual prioritization practice, with a focus on determining what is achievable considering the City’s staffing and funding resources within a given fiscal year. • Implement the practice of reviewing progress toward strategic goals on a quarterly or semi-annual basis. As part of this work, the City should identify outcome-based performance measure to track and report on progress. In addition, the expanded use of performance dashboards, indicators, and other standardized reporting tools would strengthen the City Council’s ability to provide appropriate oversight and track progress over time.
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7. Observation While the City has established some strong community engagement practices, interviewees noted that Council members may have an overreliance on anecdotal evidence and/or public comment that may not be representative of the wider community perspective.

Recommendation A. Consider setting clearer expectations for the intended scope of community engagement at the start of City initiatives.

B. Continue current efforts to implement a statistically significant, representative community survey.

C. Consider providing media and crisis communication training to all Council members.

Best Practice
Community engagement is an essential component of a well-run local government. By utilizing community input, local governments can improve decision-making, ensure transparency, foster community participation, and build trust with community members.10,11 Successful community engagement programs are multi-pronged, and often include a combination of the following practices:
• Public meeting and hearings (often required by regulation) • Focus groups or work sessions
• Social media, web pages, or mobile applications
• Email, newsletters, text, or other digital communication • Advisory boards, committees, or commissions
• Volunteer programs
• Representative community surveys12,13
• Collaboration with representative community partners
For crisis situations, it is best practice to have a dedicated point of contact for communication with the public. In addition, many cities provide media training to council members to ensure they are wellprepared to engage as needed.

Current Conditions
In alignment with best practice, the City has invested in a centralized communication team that is responsible for managing various communication channels, including social media and media outlets.

The City has also established some creative programs to engage with residents, such as the Cupertino Block Leader Program which was developed as a collaborative way to work with residents 10 Community Engagement and Public Strategy, ICMA
11 Building an Effective Community Engagement Strategy, ICMA 12 ICMA, The Voice of the Public
13 Bloomberg Cities, Five Secrets of Successful Community Surveys 489
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to enhance community preparedness, communication, and resilience at the neighborhood level. The City also regularly solicits input from the community regarding specific projects. For example, for significant policy initiatives such as updating the building code, the City actively seeks public feedback through surveys, focus groups, and other methods.

However, the City has not established a standardized approach to what constitutes comprehensive or sufficient community input for a given initiative. As a result, staff report that at times City Council has repeatedly requested additional avenues for community feedback, which has heightened workloads.

In alignment with regulations, the City provides space for public comment at regular City Council meetings and other venues. Interviewed staff and some Council members report that comments made by community members at public meetings are sometimes interpreted to be representative of the views of all stakeholders and to be factual without substantive validation. Within this context, community members with the means, ability, access, and interest in participating in public comment may receive oversized responses to their issues.

In recent years, the City has not utilized a representative community survey to gather wholistic information about community perception of City services. However, a survey of this type is budgeted and planned for the 2024 fiscal year. By returning to this practice, the City can help provide context for individual public input and help ground decision-making in majority interests, rather than relying on individual feedback provided via the public comment process. Ideally, the City will continue to administer community surveys on an annual basis and ask similar questions each year. In this way, City leadership will both establish a baseline and receive comprehensive insight into trends.

In terms of crisis communication, City policy dictates that the Mayor is the designated spokesperson for the Council. However, Council members have not been provided with media training and some staff report that there have been instances of Council members sharing comments with the media without notifying City staff.

Recommendations
• Consider implementing processes to set clearer expectations for the scope of community engagement at the start of major City initiatives. This may take the form of staff establishing baseline definitions for appropriate levels of community engagement for different types of projects or proactively documenting the intended outreach plan associated with major projects. • Continue current efforts to implement a statistically significant, representative community survey to gather baseline information about resident’s needs, interests, and perception of City services. • Consider providing media and crisis communication training to all Council members. As part of this training, it would be beneficial to clarify individual roles and responsibilities, including those of the Mayor and Vice Mayor.
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8. Observation The City utilizes multiple commissions and committees to support Council decision-making. There are opportunities to increase the effectiveness of some of these groups.

Recommendation A. Establish charters, including clear roles and responsibilities, for each commission and committee that outline the group’s purpose and member roles and responsibilities.

B. Review additional opportunities to streamline governance groups.

C. Consider reviewing the names of governance groups to introduce a consistent naming convention for commission versus committee.

Best Practice
Commissions and committees play an important role in local government by acting in an advisory capacity, providing in-depth analyses, and making recommendations to inform city council decisionmaking.14 These types of governance groups are an effective way of involving citizens in the engagement process of local government.

In terms of committee and commission structure, the following are best practices for effective use of these types of groups:
• Each group should have a clearly defined purpose, scope of authority (including whether groups are meant to be advisory, regulatory, or operational), responsibilities, and legal obligations. This information is typically defined within municipal code and/or via charters or other formal documents.
• Leadership should regularly evaluate the existing governance group structure and ability to adjust it based on the organization or community’s changing governance needs. • While there is no established standard for the ideal number of governance groups, leadership groups should consider the following factors when deciding to add, eliminate, or combine groups:
○ Is this group fulfilling a high-priority need for our community? ○ Is this group fulfilling a distinct purpose for our community or could additional scope and/or responsibilities be added to a current group?
○ Do we have sufficient staff to effectively support this group? Governance groups are sometimes called boards, commissions, committees, or councils depending on their function. Frequently, the term “commission” is used to indicate a group that has powers and duties established by ordinance and have either regulatory or functional responsibilities. The term “committee” is frequently used to denote a group that is advisory in nature. However, the terminology used is often a matter of local preference.15
14 Local Government Citizen Advisory Boards, MRSC
15 Maryland Municipal League: Citizen Boards, Commissions and Committees 491
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Current Conditions
The City has established various committees and commissions to address specific areas of focus.

There are ten commissions tasked with advising the City Council in the formation of policy. With the exception of the Planning Commission, all other commissions function in a strictly advisory role to the City Council, as is appropriate and consistent with best practices. Commissions include:
• Arts and Culture Commission
• Bicycle Pedestrian Commission
• Housing Commission
• Library Commission
• Parks and Recreation Commission
• Planning Commission
• Public Safety Commission
• Sustainability Commission
• Technology, Information, and Communications Commission • Teen Commission
The City also has three committees and a council. Generally, one or two Council members are assigned as members, and the committees may include members from the public or staff. With the exception of the Administrative Hearing Committee (which conducts administrative hearings), the purpose of the committees is to review specific topics affecting the City and make recommendations to the City Council.
• Administrative Hearing Committee
• Audit Committee
• Disaster Council
• Sister City Committee
The City Council also occasionally creates topic-specific, time-delimited subcommittees (which are usually led by two Council members) to address a particular concern.

In alignment with best practice, the City reviewed the purpose and number of governance groups in early 2023. Based on staff recommendations, the City Council consolidated or eliminated several groups to reduce the overall number of governance groups from 17 to 13 (per City Council Ordinance No. 23-2247). A recent staff report determined that cities in Santa Clara County on average support 12 commissions and committees, not including any active council subcommittees. As such, the City is now significantly closer to the local average.

In terms of the core function of the City’s governance groups, almost all groups (regardless of whether they are named “commission” or “committee”) are advisory bodies. With the exception of the Administrative Hearing Committee, the foundational duties of all other governance groups are codified in the City’s Municipal Code. However, the City has not yet established the process of developing individual charters to outline the group’s purpose and member roles and responsibilities. 492
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Staff report that there have been ongoing challenges ensuring that all governance group members understand the scope of their authority. It was frequently reported that certain group members believe they have the authority to direct staff on administrative matters or assign work tasks. This is a breach of the group’s actual authority, and can create tension when staff members are put in a position to deny or redirect the work requests.

In addition, interviewees noted that several groups often do not have significant volumes of work, which can create challenges to keeping members productively engaged. The following groups were noted:
• Public Safety Commission
• Sustainability Commission
• Teen Commission
Recommendations
• Establish charters for each commission and committee that outline the group’s purpose and member roles and responsibilities in more detail than is currently provided in the Municipal Code.

In particular, it will be critical to outline what the advisory function fully entails and clarify that commissions and committees cannot direct staff work or assign tasks. • Review additional opportunities to streamline governance groups. In particular, the City should evaluate the following:
○ Housing Commission: It is common for Housing Commissions to be combined with Planning Commissions, given the highly interrelated areas of work.16 ○ Library Commission: The local library system is administered by the Santa Clara Library District, rather than the City. Within this structure, it is questionable whether a Library Commission supports a core function of the City. To provide input on time-specific topics like the location of a new library within the City, it may be more effective to utilize an ad hoc committee or work group.
○ Public Safety Commission: Consider reviewing the core function of the Public Safety Commission. While fire and police services are provided by the County (and therefore not directly managed by the City), this commission also advises on issues related to traffic and general public safety.
○ Teen and Sustainability Commissions: Consider reviewing the Teen Commission and Sustainability Commission to determine if this work may be better carried out through alternative structures and/or whether fewer annual meetings may be appropriate. • Consider reviewing the names of governance groups to introduce a consistent naming convention for commission versus committee. Given that the majority of the groups are advisory in nature, it may be beneficial to rename the commissions to “committees.” The Planning Commission would be the primary exception to this, as the group’s core function is not solely advisory. 16 Housing Data: Housing Committees
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9. Observation The City has documented processes to select and appoint community members to governance groups. This process could be strengthened by adding relevant qualification criteria.

Recommendation Review and establish the qualification criteria for each commission and committee member to determine if the City would benefit from adjustments.

Best Practice
When appointing community members to governance groups, it is best practice to document guidelines for position recruitment, evaluation, and selection.17,18 Documents typically address the following:
• Appointment Process: The organization should establish a transparent and fair appointment process for committee or commission members. Define the roles of the governing body (such as the mayor, city council, or relevant authority) in appointing or approving members. Most processes utilize both a written submission and some type of interview process to assess qualifications and fit.
• Terms and Staggering: The organization should document the terms of committee or commission members. There are advantages to limiting the length and number of terms for which members can serve. Limiting terms can help avoid overrepresentation of interest groups. However, term limits may also result in the exit of members who have the most experience. By staggering terms, the organization can maintain institutional memory while allowing for new members to join regularly. In addition, another common best practice is to require governance group members to wait a period of time (usually one or two term lengths) before applying for new governance roles.

This helps to ensure broad representation on governance groups. • Composition and Diversity: The organization should document the size and composition of the committee or commission based on the requirements of the work to be done. It is best practice to strive for diversity in membership. Equity principles suggests that membership be representative of the community at large (in terms of sex, race, ethnicity, and geography) in order to promote inclusivity, robust decision-making, and community representation. • Expertise and Qualifications: Some municipalities require only that its governance group members reside in or own a business in the city and demonstrate an interest in the committee subject matter. However, some governance groups—like the Planning Commission—may benefit from specialized expertise or a minimum baseline knowledge within their membership. In particular, groups charged with oversight responsibilities or that deal in highly technical topics often require some degree of subject-matter familiarity from some or all members. This ensures that members can contribute effectively and make informed recommendations, in collaboration with the subject matter expertise that staff provide.
17 Maryland Municipal League: Citizen Boards, Commissions and Committees 18 Local Government Citizen Advisory Boards, MRSC
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Current Conditions
The processes to select and appoint members of commissions and committees is outlined via various City Council resolutions. For example, Resolution 16-137 establishes processes related to recruitment and appointments. In alignment with best practice, the City has also taken steps to expand diversity within the governance groups by adopting Resolution 03-203, which affirms the intention to embrace the City’s demographic diversity when making appointments.

The Municipal Code outlines some considerations for selection criteria for some, but not all, groups.

For example, the Housing Commission chapter notes criteria that the Council should prioritize when appointing members (like applicants who are familiar with the operation of affordable housing or who are renters). However, several groups do not have clear standards or criteria for minimum qualifications for positions within groups that would benefit from technical expertise. Notably, the Planning Commission does not have any documented criteria. Without minimum (or even desired) qualification requirements, it is difficult to ensure that applicants have subject matter familiarity related to the governing group on which they serve.

The City does not currently require governance group members to wait a period of time before applying for new governance roles. As such, governance group members can serve in multiple consecutive positions across various groups.

Recommendations
• Review the qualification criteria for each commission and committee to determine if the City would benefit from adjustments:
○ Consider establishing qualification criteria for select groups to help ensure that the City’s advisory groups contain members with baseline subject matter familiarity to productively engage in their advisory capacity.
○ Consider establishing a waiting period for current governance group members looking to apply for new positions. The goal of this shift would be to encourage broader participation and representation within governance groups.
○ Consider adopting standard commission and committee member interview questions that are germane to their roles and responsibilities.
• Appendix A contains a summary of the current selection criteria for each group as documented in the City’s Municipal Code.
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10. Observation Commission and committee operations—including onboarding, meeting procedures, work plans, and reporting—are not always consistent or effective.

Recommendation A. Continue efforts to expand and formalize onboarding and training expectations for both commissions and committees.

B. Clarify the process and expectation for cancelling unnecessary meetings.

C. Consider adopting the practice of requiring annual work plans for each commission and committee.

Best Practice
Onboarding and Training
Onboarding and training for new commission or committee members are crucial for smooth integration into their roles and the effective functioning of the commission or committee. By implementing a robust onboarding and training program, commissions or committees can facilitate effective participation and engagement of new members. This leads to informed decision-making, collaboration, and overall success of the group’s work in serving the community.

In most aspects, governance group orientations often follow a similar (if abbreviated) format to that of Council orientations (see the City Council Onboarding and Training section). However, committee and commission orientations often focus on additional areas:
• Subject Matter Training: Governance group orientation typically includes some degree of subject matter training or resources to help new members familiarize themselves with the area of focus of the commission or committee. By providing background information, relevant research, and resources, new members can build their knowledge and expertise in their respective areas. • Roles and Responsibilities: Clarifying the roles and responsibilities of the governance group chair, members, and staff can be helpful to support smooth operations. In particular, the chair will play a large role in ensuring productive meetings by facilitating discussions and keeping the group focused.
• Staff Support: Governance group orientations should clearly outline what type of support the group will receive from their staff liaison, as well as introduce other important staff contacts (like the City Clerk’s Office).

Meeting Procedures
Commission and committee meeting procedures should be established in code and/or other formal documents. In terms of meeting cadence, there are no established standards for meeting frequency.

Rather the cadence should be based on the needs of the committee or commission’s function. If there is not active work to accomplish, the group should have a provision to cancel unnecessary meetings. 496
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Annual Work Plans
It is best practice for advisory groups to develop an annual work plan that outlines the group’s priorities, timelines, and any relevant deliverables.19 Regular review of progress and adjustment to the work plan may be required over the course of the year. This type of planning document can help ensure groups are focused on the highest priority work and reduce scope expansion. Given that advisory groups do not have assigned staff to complete operational work, it is important to note that the annual work plans can only refer to work that group members will produce themselves. In addition, work plans should be aligned with and support major City goals, priorities, and/or Work Program items.

Reporting
The reporting structure and expectations for how commissions or committees share information with City Council should be documented. Establishing clear lines of communication and reporting to the governing body ensures that recommendations are documented and considered in decision-making processes. Committees and commissions usually communicate with the governing body and the public by means of written reports, public hearings, and/or verbal communication. In addition, the new Council Procedures Manual requires that at least one commission member be present at Council meetings when the commission’s recommendations are being considered to help facilitate direct communication.

Current Conditions
Onboarding and Training
The City has developed a general onboarding presentation for commissions. The focus of the onboarding presentation is the material covered in the Commission Handbook, including structure of government; commission purpose; attendance; public meetings (Brown Act); conflicts of interest; parliamentary procedures; ethics; City Work Program; and communications.

However, there are opportunities to enhance the effectiveness of the onboarding process. • It is unclear whether this training is presented to committees. • As noted in the Commission and Committee Structure section, there have been ongoing challenges ensuring that all governance group members understand that their core function is advisory in nature and that they cannot direct staff on administrative matters or assign work tasks. • Interviewed staff noted that the current orientation is fairly short and does not go into depth on any issues. The training does not touch on specific responsibilities. For example, some staff noted that the role of the chair is often not specifically addressed, and note-taking processes vary by group.

Meeting Procedures
Meeting cadence varies widely by group, which is to be expected given their differing scopes. Staff report that groups which meet frequently (once or twice per month) have frequently resisted the idea of cancelling meetings when there are no active agenda items. This suggests that additional training 19 Local Government Citizen Advisory Boards, MRSC
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and guidance from staff on this issue may be beneficial to make better use of staff and governing group members’ time, and that meeting frequency could be evaluated.

Work Plans
The City does not require annual work plans for any of their governance groups. In the absence of defined priorities or clear direction from Council, some interviewees noted that governing groups will occasionally find new projects to take on that are outside the scope of the group’s intended role.

Reporting
The City hosts a monthly meeting where all commissions can report on progress and upcoming activities to the Mayor.

Recommendations
• Continue efforts to expand and formalize onboarding and training expectations for both commissions and committees. In particular, it may be helpful to expand the current orientation process and establish consistent processes to provide subject matter training for relevant groups.

Providing opportunities for peer-to-peer learning across governance groups may also be helpful. • Provide additional support for groups that meet frequently (at least once per month) to clarify the process and expectation for cancelling unnecessary meetings. It may be beneficial to introduce a regular check-in between the chair and staff liaison when finalizing agendas to determine if there is a need for the subsequent meeting.
• Consider adopting the practice of requiring annual work plans for each commission and committee, that aligns with City’s goals, priorities, and/or Work Program. The development of annual work plans would need to be supported by staff to ensure they are targeted, meaningful, and reasonable in scope. In many cities, staff liaisons develop draft work plans that are then reviewed, edited, and approved by the group they support.

11. Observation The staff time used to support governance groups represents a significant investment of City resources.

Recommendation A. Review the practice of requesting department directors attend commission and committee meetings.

B. Provide training for staff liaisons annually and when a new individual takes on the liaison role.

Best Practice
Staff support is a crucial element to ensure governance groups can operate smoothly, leverage expertise, and make informed decisions. Staff from across the organization may support different elements of the governance groups, including:
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• Administrative support for meetings (including agenda development, meeting logistics, and taking meeting minutes)
• Compliance support
• Legal advice
• Subject matter expertise
• Training and onboarding
It is common practice to assign a specific staff liaison to provide the primary administrative support and subject matter expertise. Within this setting, it is critical to support liaisons with documentation and training on processes, responsibilities, and expectations.

The most critical best practice is to ensure that roles and responsibilities are clearly defined for all parties. Both staff and governance group members should understand their specific duties, expectations, areas of expertise, and limitations.

Current Conditions
In alignment with best practice, the City has established staff liaison roles to support each commission and committee. In the instances where staff liaison roles are not already filled by a department director, some department directors have recently been asked to participate in these meetings in addition to the staff liaison. While the intention behind this shift was to provide additional support to staff, some interviewees noted that this has created challenges to the staff liaison’s authority and sense of responsibility. When department directors are present, it can undermine the staff liaison’s position and can create confusion about roles.

Supporting governance groups requires significant investment of staff time and City resources. A 2023 review performed by the City estimated that required annual staff liaison time to provide this support totaled more than 4,600 hours.20 In addition to staff liaison hours, the report notes that the “City Clerk’s Office spends significant time (over 1,000 hours) per year on administrative duties for commissions such as orientation, training, and assisting with agendas. The City Attorney’s Office also supports certain commission and committee items and staffs the Planning Commission.” Some interviewed staff reported significant challenges to accomplishing the workload associated with supporting these groups. In particular, the City Clerk’s Office has been struggling with understaffing, which has had a negative impact of their ability to both support governance groups and accomplish other work priorities.

January 17 Staff Report – Staff Liaison Hour Summary21
Commission Annual Staff
Liaison Hours
Committee Annual Staff
Liaison Hours
Bicycle Pedestrian 240 Administrative Hearing
Committee
30 Arts and Culture 200 Audit Committee 230
20 City Council Staff Report January 17: Study Session to consider modifying Municipal Code Title 2 regarding compositions and responsibilities of existing Commissions and Committees 21 City Council Staff Report January 17: Study Session to consider modifying Municipal Code Title 2 regarding compositions and responsibilities of existing Commissions and Committees 499
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Commission Annual Staff
Liaison Hours
Committee Annual Staff
Liaison Hours
Housing 220 Disaster Council 30
Library 350 Economic Development 60
Parks and Recreation 750 Environmental Review 80
Planning 1100 Design Review 40
Public Safety 200 Legislative Review 400
Sustainability 220 Total 870
TICC 120
Teen 300
Total 3,740
In alignment with best practice, the City has documented the liaison duties and expectations.

However, the City does not provide annual trainings for new and returning staff liaisons.

Recommendations
• Review the practice of requesting department directors attend commission and committee meetings. If it is determined that this practice does make sense within the City’s operating environment, it will be critical to distinguish between the role of the staff liaison and the department director. If both department directors and staff liaisons are to attend the meeting, clear expectations for roles and responsibilities should be delineated and communicated.

Department directors should reinforce the expertise and role of the staff liaison, while supporting staff in managing the effective function of the commission. • Provide training for staff liaisons at least annually, and when a new individual takes on the liaison role. Ideally, this training would include key meeting protocols, roles and responsibilities, City policies, and tactics to help the groups stay focused on priorities, reinforce appropriate roles and responsibilities, and address conflicts.
• Continue efforts to right-size the number of committees and commissions to more effectively utilize staff time. See Commission and Committee Structure section for more details. 500
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12. Observation City staff continue to experience a high degree of organizational change and uncertainty. Within this context, it is critical for the City’s management team to provide active communication and change management to increase support of staff.

Recommendation Identify and implement expanded communication and change management practices to improve workplace culture.

Best Practice
Effective communication and change management with city staff are crucial for successful organizational operations and implementation of new initiatives:22, 23, 24 The following are common best practices to help staff navigate significant organizational change or upheaval:
• Transparent Communication: Foster a culture of transparent communication by providing regular updates, sharing information, and actively engaging with staff members. Be open about organizational goals, changes, and challenges, and encourage two-way communication where staff can ask questions, share feedback, and express concerns. • Clear and Timely Messaging: Ensure that messages about organizational changes, new initiatives, or important updates are clear, concise, and timely. Use multiple communication channels, such as staff meetings, emails, intranet, or newsletters, to reach staff members effectively. Tailor messages to different departments or levels of the organization, as needed. • Change Management Strategy: For any major organizational change, develop a change management strategy to guide the related communications. This strategy should include:
○ A clear vision/message that communicates why the change is taking place. Without a clear understanding of the need for change, it is difficult to gain buy-in. ○ A communication plan that outlines the specific communication milestones, methods, and responsible parties. The communication plan should clearly identify what is changing, how it is changing, who will be affected, how City customers will be affected, and when the change will occur.
○ Mechanisms for staff involvement and feedback. Wherever possible, employees should be engaged prior to announcing new changes to define the problem, provide input on potential concerns, and provide suggestions to improve implementation. ○ Training programs, if relevant, to build new staff knowledge and skills. • Staff Involvement and Empowerment: Involve staff members in the change process by soliciting their input, ideas, and concerns. Encourage their active participation in decision-making, problemsolving, and identifying areas for improvement. Empower staff by providing opportunities for training, skill development, and growth aligned with the changes being implemented. • Feedback and Recognition: Create mechanisms for staff to provide feedback on the change process and the impact it has on their work. Actively listen to their concerns, address issues 22 Council-Staff Communication Guidelines, ICMA
23 Preparing for a Culture of Change and Innovation, ICMA 24 Mistakes to Avoid When Communicating Change, ICMA
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promptly, and acknowledge their contributions and efforts. Recognize and reward staff members who adapt well to change and contribute positively to organizational goals.

Current Conditions
The City has undergone and continues to experience a high degree of organizational change and uncertainty. In particular, the high turnover in key leadership positions within the City and the ongoing turmoil in relation to Council/staff relationships has reportedly resulted in low employee morale and a strong (and understandable) resistance to additional change.

Some interviewed staff reported the need for strong levels of communication for leadership and a desire for more engagement and inclusion in decision-making processes—especially on topics that greatly impact staff such as flexible work arrangements. Within this environment, it becomes highly important that the City’s management team is engaged in active communication, change management, and support of staff to help the organization weather change and improve the workplace culture.

Recommendations
• The City’s management team should collaborate to identify and implement expanded communication and change management practices as a means of supporting staff and helping to improve workplace culture. Options may include:
○ Communication Alignment: The City’s leadership team may benefit from establishing specific processes to explicitly identify what information needs to be shared with staff and who is responsible for sharing it. This can be as simple as a checklist that is used at the end of each management team meeting to discuss:
− What information (if any) needs to be communicated out to staff? − Who is responsible for communicating it (individual vs. all department directors)? − How will the message be shared (email, verbal, etc.)? − When will the information go out?
○ Engagement Surveys: Regular (quarterly or semi-annual) employee engagement surveys can provide a means to track baseline and trends. By reviewing and acting upon feedback, the leadership team can continue to build trust with staff. ○ Change Management Training: The City’s management team may benefit from training on communication and change management best practices. By participating in such trainings as a team, City management can then develop a shared vocabulary and begin to identify opportunities to make positive changes to current communication practices.

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APPENDIX A: COMMISSION AND COMMITTEE

SELECTION CRITERIA
The following table contains a summary of the current selection criteria for each governance group as documented in the City’s Municipal Code.

Governance Group Title Selection Criteria
Administrative Hearing
Committee
• N/A
Arts and Culture Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Three members must be City residents
• Membership will be drawn to represent the arts, citizens and business community on an approximately equal basis
Audit Committee • A minimum of two and a maximum of three at large members cannot be officials or employees of the City
• A minimum of two and a maximum of three at large
members cannot cohabitate or be related to a member of
the Committee, the City Manager, or the staff persons
assigned to the Committee
• Members must be a City resident, apart from the at-large member
• In selecting an at-large member, the City Council shall give priority to individuals who have substantial
accounting, audit, or investment experience, preferably in connection with a governmental agency
Bicycle Pedestrian Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Members must be City residents
Disaster Council • N/A
Housing Commission • The commission will include four community members and one representative from a Cupertino business
• Members cannot be an official or employee of the City 503
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Governance Group Title Selection Criteria
• Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Members must be City residents, apart from the
representative of a business
• The business representative must represent a business that is located in the City
• In selection of community members, the City Council may give priority to:
○ Applicants who represent the Community
Development Block Grant (CDBG) target areas as
described in the City's Consolidated Plan;
○ Applicants who are familiar with the operation of
affordable housing;
○ Applicants who represent non-profit community
organizations; and
○ Applicants who are knowledgeable about the housing
needs of groups targeted for affordable housing
development which include, but are not limited to, the
following:
− Seniors
− Single parent families
− Homeless persons
− Families of low income
− Disabled persons
− Renters
− First time homebuyers
Library Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
Parks and Recreation
Commission
• Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Members must be City residents
Planning Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
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Governance Group Title Selection Criteria
• Members must be City residents
• Members must be qualified electors in the City
Public Safety Commission • Members cannot be an official or employee of the City • Members cannot be part of the Sheriff’s Department of the County, either regular or reserve, or members of the
Central Fire Protection District
• Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• Members must be City residents
Sister City Committee • N/A
Sustainability Commission • Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
• The Commission must include:
○ One representative from a Cupertino-based business,
○ One representative from a Cupertino-based primary,
secondary, or higher educational institution, and
○ Three community members.
• Members must be City residents, apart from the business and educational institution representatives
• Business and educational institution representatives must represent organizations that are located in the City
• In selection of community members, the City Council may give priority to:
○ Applicants who represent the target sectors and
partners as described in the Cupertino Climate Action
Plan (hereinafter referred to in this Chapter as "CAP") ○ Applicants who are familiar with climate change
mitigation and adaptation strategies, greenhouse gas
emissions inventories, resource and utility
conservation, sustainability, and behavior change
○ Applicants who represent non-profit community
organizations and environmental interest groups
Technology, Information, and
Communications Commission
• Members cannot be an official or employee of the City • Members cannot cohabitate or be related to a member of the Commission, the City Manager, or the staff persons
assigned to the Commission
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Governance Group Title Selection Criteria
• Members must be qualified electors in the City
Teen Commission • Members cannot be an official or employee of the City • Members cannot be related to any official or employee of the City
• Members must be City residents
• Members must include at least one person from each
public middle school and public high school in Cupertino, if possible
• Members may attend schools outside of the City limits, or be schooled at home
• Members must be in the 8th through 11th grade at time of appointment
• Members should reflect the broadest possible
representation of Cupertino youth
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CITY OF CUPERTINO
Agenda Item
23-12287 Agenda Date: 9/6/2023
Agenda #: 9.

Subject: Councilmember Reports
CITY OF CUPERTINO Page 1 of 1 Printed on 8/29/2023
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1 CITY COUNCIL ACTIVITY REPORT
Meeting:  Wednesday, September 6, 2023
Reporting Councilmember:  Councilmember J.R. Fruen
Report Activity Dates:  7/11/23 to 8/28/23
Event Date, Title, and Description:

Event 1. July 19, 2023 – Council Preparation Session on Housing Element – I participated in a preparatory session with staff about the Housing Element update, anticipated timelines, and expectations for the July 25, 2023, council study session on the matter.

Event 2. July 21, 2023 – Meeting with Constituent – I met with Krishna Nathan for a discussion of affordable housing and public policy as part of a BSA requirement for a merit badge.

Event 3. July 24, 2023 – Audit Committee Meeting – Vice‐Mayor Mohan and I attended the Audit Committee meeting in our capacity as members of the committee. The most notable item of review was the Enterprise Leadership Assessment Final Report. Moss Adams, the city’s contract auditor, reported out two standout observations: (1) that the Council Procedures Manual has significantly addressed many concerns about the conduct of meetings and overall efficacy of direction to staff, but that it must be fully implemented in order to be effective; and (2) that a culture of mistrust between some councilmembers and staff continues to persist. The report makes a host of recommendations to improve the overall governance of the city and will be reviewed by council.

Event 4. July 25, 2023 – Meeting with Melinda Coy and Jose Jauregui of the California Department of Housing and Community Development – I met with Cupertino’s Housing Element reviewer at HCD and his supervisor to better understand their views of Cupertino’s Housing Element challenges and opportunities, and to gain added insight into the requirements for Cupertino to obtain certification.
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2 Event 5. July 31, 2023 – Meeting with Constituent – I met with Adit Singh, a Cupertino resident and rising senior at Mitty High School, to discuss his ideas about destigmatizing access to mental health resources among parents.

Event 6. August 6, 2023 – Toyokawa Bell Ringing Remembrance Ceremony – Mayor Wei and I joined the Cupertino – Toyokawa Sister Cities Association for their annual bell‐ringing ceremony in Memorial Park to commemorate the bombings of Japanese cities, including the bombing of Toyokawa, during the Second World War. The Consul General of Japan, Yasushi Noguchi, attended the event and made heartfelt remarks.

Event 7. August 8, 2023 – Friends of the Stevens Creek Trail Commemorative Quilt Unveiling – Mayor Wei and I joined board members of the Friends of the Stevens Creek Trail to unveil a quilt honoring Trailblazers Race and the 30th anniversary of the organization. The next Trailblazers Race is set for September 24:
https://www.mercurynews.com/2023/06/25/trailblazing‐quilt‐celebrates‐friends‐of‐stevens‐ creek‐trails‐30th‐anniversary/
Event 8. August 10, 2023 – VTA Policy Advisory Committee Meeting – I joined in my capacity as Cupertino’s representative on the Committee. In addition to regular housekeeping items, the Committee spent considerable time on VTA’s transit‐oriented development transportation demand management program for developments intended to occur on VTA‐owned land. A key point of discussion was whether to require issuance of funded Clipper cards to all residents of housing developments on VTA land or just those in affordable housing. The Committee ultimately voted recommend issuance to all residents in order to spur interest in transit use and maximize revenue to VTA. The Committee also reviewed the VTA Climate Action and Adaptation Plan. The meeting agenda and related media are available here:
http://santaclaravta.iqm2.com/Citizens/Detail_Meeting.aspx?ID=3808 Event 9. August 13, 2023 – Coffee & Cupertino (Housing Element) – I joined members of the public for a coffee talk on the topic of the Housing Element update hosted by Cupertino for All at Main Street.

Event 10. August 15, 2023 – Cupertino Historical Society Board Meeting – I attended the Society’s board meeting in my capacity as council’s delegate to the Society’s Advisory Board. It was Manny Valerio’s first full session as interim executive director.

Event 11. August 17, 2023 – First Amendment Training – I participated in the city’s First Amendment Training, which focused on how to best interact with First Amendment auditors. 510
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3 Event 12. Augst 18, 20223 – India Flag Raising Ceremony – Together with Mayor Wei and Consul General of India, I participated in the India Flag Raising Ceremony hosted by the Cupertino – Bhubaneswar Sister City Initiative. The ceremony consisted of flag raisings of both the U.S. and Indian flags alongside performances of each country’s national anthem.

Event 13. August 23, 2023 – Santa Clara Valley Water Commission Meeting – I took part in this meeting as Cupertino’s representative on the Commission. This special meeting took place at the Silicon Valley Advanced Water Purification Center on Zanker Road in north San Jose.

Most of the agenda passed swiftly on consent. At the conclusion of the meeting, Valley Water staff took commissioners on a tour of the Advanced Water Purification Center. The agenda and related materials are available here: https://s3.us‐west‐1.amazonaws.com/valleywater.org.us‐ west‐1/s3fs‐public/SCVWC‐Agenda‐08232023.pdf
Event 14. August 24, 2023 – MTC‐ABAG Webinar “Investing in the Future of Bay Area Housing” – This was an informative webinar that focused on the financing of affordable housing and the structure a future bond to support the Bay Area Housing Finance Authority would take. The webinar is now available on BAHFA’s website.

Event 15. August 24, 2023 – Champions of Change Celebration – I attended this annual fundraiser hosted by Working Partnerships USA to honor changemakers and champions of workers’ rights in the South Bay and beyond.

Event 16. August 26, 2023 – Cupertino Night Market – Together with Mayor Wei and the City Manager, I attended the Cupertino Night Market, a joint effort of De Anza College, the Cupertino Chamber of Commerce, and the Asian American Business Council. The event was well‐attended and featured a variety of performers in addition to food and goods available for sale.

Event 17. August 27, 2023 – Silicon Valley Pride – I joined other elected officials in marching in the 2023 Silicon Valley Pride parade in celebration of the LGBTQ+ community.

Event 18. August 27, 2023 – Global Elegance by Cupertino Rotary – Alongside Mayor Wei, I attended Cupertino Rotary’s annual Global Elegance event to celebrate the organization’s humanitarian achievements and to raise funds for future such endeavors.

Event 19. August 28, 2023 – Briefing from Don Cecil and Emily Douglas re ENGIE – I met with two representatives of ENGIE to discuss opportunities in sustainable electrical power production in Cupertino.
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1 CITY COUNCIL ACTIVITY REPORT
Meeting:  Wednesday, September 6, 2023
Reporting Councilmember:  Mayor Hung Wei
Report Activity Dates:  7/11/23 to 8/28/23
Event Date, Title, and Description:

Event 1.  July 12, 2023, @7am, Keynote Speaker at De Anza Optimist Club of Cupertino Meeting Spoke at Optimist Club’s Meeting at Cupertino County Inn on City issues and answered questions.

Event 2.  July 12, 2023, @9:30am, Prep Session with City Staff on Street Light Transition Assessment Report
City Staff presented the Street Light Transition Assessment Report with Q&A Event 3.  July 13, 2023, @noon, Webinar on” CA’s New Campaign Contribution Regulations – What local governments need to know?”
Attended the Webinar to learn about the new campaign contribution regulations.

Event 4.  July 13, 2023, @1pm, Webinar on “The End of Affirmative Action – What’s Next?” Attended the webinar hosted by Silicon Valley Leadership Group on Affirmative Action.

Event 5.  July 15, 2023, @6pm, Taiwan Vox Native Children’s Choir Performance Attended the Taiwan Vox Native Children’s Choir Performance at San Jose Performing Art Center with Councilmembers Chao and Moore also attending. 512
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2 Event 6.  July 16, 2023, @9am, met with Indian American Community Members regarding SB403
Met with Satish and a group of Indian American community members to listen to their concerns on SB403 @ Panera Bread in Cupertino
Event 7.  July 16, 2023, @2pm, 20th Anniversary Celebration of Joyful Melodies Music School in Cupertino
Attended the 20th Anniversary of Joyful Melodies Music School to celebrate its promoting music enjoyment for 20 years with performances from students to teachers.

Event 8.  July 17, 2023, @1pm, Housing Element In‐Person Discussion with City Staff Met with City Staff to go over the Housing Element and asked questions/received Staff input.

Event 9.  July 18, 2023, @noon, API Leaders Summit hosted by Assemblymember Evan Low Attended the API Leaders Summit meeting at Hong’s Gourmet in Saratoga hosted by Assemblymember Evan Low with candid conversations on issues facing the API communities.

Event 10.  July 19, 2023, @8am, Coffee Chat with Local New Businesses hosted by the Cupertino Chamber of Commerce
Attended the very 1st Coffee Chat with local new business owners at the Cupertino Chamber of Commerce with Deputy City Manager Tina Kapoor leading the conversations.

Event 11.  July 19, 2023, @10:30am, met with student interns led by Don Sun Met with student interns led by Don Sun in Cupertino Library for a presentation of the City of Cupertino and answered questions.

Event 12.  July 20, 2023, @5:30pm, Taiwanese Businesses Networking Social @ Sun Design Attended the Networking Social at Sun Design, a local Cupertino business, to welcome business networking opportunities in Cupertino, encourage collaboration cross Silicon Valley areas, and to introduce the City of Cupertino to owners whose business is not located in Cupertino.
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3 Event 13.  July 21, 2023, @ 9:45am, Interview with Kevin Duggan for Council Workshop Interviewed with Kevin Duggan to prepare for Council Workshop.et Event 14.  July 26, 2023, @ 4:00pm, met with Interns from the Cupertino Chamber of Commerce Met with Interns from the Cupertino Chamber of Commerce, introduced the City of Cupertino and answered questions.

Event 15.  July 27, 2023, @10:30am, Taiwan College Students’ visit to the City Hall 41 college students from Taiwan, led by Dr. Michael Chang, visited the City Hall, learned about Cupertino and asked questions.

Event 16.  July 29, 2023, @9am, Northern CA Chinese Culture‐Athletic Federation the Eagle Claw Martial Arts Invitational Tournament Opening Ceremony Attended the Opening Ceremony of the Eagle Claw Martial Arts Invitational Tournament at Sequoia High School in Redwood City and presented a Certificate of Appreciation from the City of Cupertino
Event 17.  July 29, 2023, from 11am‐2pm SVYCA (Silicon Valley Youth Climate Action) Youth Leadership Summit @ De Anza College
Attended the SVYCA Youth Leadership Summit and participated in two sessions on climate action initiatives.

Event 18.  July 30, 2023, @10am, TCAAT Torch‐Lighting and Opening Ceremony Attended the Torch‐Lighting and Opening Ceremony of the Taiwanese Chinese American Athletic Tournament at Cupertino High School, representing the City of Cupertino, and presented a Certificate of Congratulations.

Event 19.  July 31, 2023, @7am, Congressman Ro Khanna’s Town Hall in West San Jose Attended Congressman Ro Khanna’s Town Hall at the Chinese American Performing Arts Center in West San Jose and presented Volunteer Appreciation Certificates to local students.

Event 20.  August 1, 2023, @7:30am‐8:30am, Morning Chat w/Mayor at Cupertino County Inn 514
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4 Hosted the monthly Morning Chat w/Mayor at Cupertino Country Inn with 19 attendees. Also attending were Chad Mosely, Director of Public Works, and Stanley Kao, Trustee of Fremont Union High School District. Trustee Kao reported on the declining enrollment issues of FUHSD as well as the intention to transition Governing Board elections from its current At‐Large Elections to By‐Trustee Area Elections. Issues brought up by the attendees included Code Enforcement, Library Parking, BMR rent increase, Pickle Ball Court nets, and state budget.

Event 21. August 1, 2023, @1pm, Silicon Valley Clean Energy Finance & Administration Committee Meeting
Attended the SVCE Finance & Administration Committee Meeting, received reports on various finance/investment as well as clean energy facilities updates.

Event 22.  August 1, 2023, from 5pm to 8pm, National Night Out Visited National Night Out gatherings at various Cupertino locations, starting with the Starbucks by the Post Office and ending at Baxley Court.  Met and chatted with neighbors who got together to connect and build community.

Event 23.  August 2, 2023, @ 10am, Ribbon Cutting @ Camp Via West Attended the Ribbon Cutting of an athletic/basketball court facility at Camp Via West, serving children and adults of all abilities.

Event 24.  August 4, 2023, @10am ZOOM Webinar with Santa Clara County Assessor Larry Stone
Attended the webinar hosted by County Assessor Larry Stone on Outdoor Space Assessment Event 25.  August 4, 2023, @2pm, Cities Association of Santa Clara County Executive Board Meeting
Attended the Executive Board Meeting of the Cities Association of Santa Clara County, Discussion topics included the unhoused issues, housing elements, and JPA formation.

Event 26.  August 6, 2023, @12:20pm, meeting with the Consul General of Japan at the City Hall to view the Cupertino Rotary rabbit dedicated to the City of Toyokawa 515
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5 Met with the Consul General of Japan to view and take pictures of the Rabbit dedicated to Cupertino Sister City Toyokawa
Event 27.  August 6, 2023, @12:30pm BBQ and @2pm Bell Ringing for World Peace at Memorial Park
Attended the Annual Bell Ringing for World Peace hosted by Cupertino’s Sister City Toyokawa with a BBQ preceding the Bell Ringing.

Event 28.  August 8, 2023, @2pm, Viewing of the Commemorative Quilt from Friends of Stevens Creek Trails at Cupertino Library
Attended the viewing of the Commemorative Quilt from Friends of Stevens Creek Trails with Board President and members of Friends of Stevens Creek Trail.

Event 29.  August 10, 2023, @9am, ZOOM with Kelly Kline, Stanford University Associate Vice President for Local Government Affairs and City Manager Pamela Wu City Manager Wu and I ZOOM met with Kelly Kline to receive updates from Stanford University on a broad discussion on education, traffic, housing, and environmental initiatives, to discover common grounds and opportunities to collaborate.

Event 30.  August 10. 2023, @6pm, Cities Association of Santa Clara County Regional Housing Bond Symposium @ Santa Clara County Board of Directors Chamber Attended the Regional Housing Bond Symposium hosted by the Cities Association of Santa Clara County in partnership with SV@Home & Working Partnerships USA.

Event 31.  August 11, 2023, @10:30am Santa Clara County Mayors Meeting & @11:30am Tour the Evelyn Safe Parking Program Lot in Mountain View
Attended the Santa Clara County Mayors Meeting with a presentation by Mountain View City staff on Mountain View’s Safe Parking Program, followed by a tour of the Evelyn Safe Parking Lot.

Event 32.  August 11, 2023, @4pm, Taiwanese Bistro Grand Opening & Ribbon Cutting Attended the Grand Opening and Ribbon Cutting of Taiwanese Bistro in Cupertino. 516
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6 Event 33.  August 12, 2023, @9am, Northern CA Chinese Culture‐Athletic Federation Sporting Event Opening Ceremony @ Sequoia High School
Attended and cheered on the Opening Ceremony Parade of the Annual NCCCAF  Sporting Event at Sequoia High School in Redwood City.

Event 34.  August 12, 2023, @11:30am, Cupertino Kung‐Fu Club Wrestling Tournament Award Ceremony at Monta Vista Park
Attended the Award Ceremony of the Wrestling Tournament hosted by the Cupertino Kung‐ Fu Club with students from a good range of ages.

Event 35.  August 12, 2023, @3:30pm, The Association of Indo Americans Independence Day Celebration at Discovery Meadow Park
Attended the Independence Day Celebration hosted by the Association of Indo Americans at Discovery Meadow Park in San Jose and met with India Consul General Nagendra Prasad.

Event 36.  August 13, 2023, @11am, Borty Scout Troop 476 Celebration 65 Years of Scouting Attended the 65 Years Celebration of Scouting with Boy Scout Troop 476 at St. Joseph Church in Cupertino with many proud seasoned Scout Masters attending.

Event 37.  August 13, 2023, @4:30pm, Silicon Valley Korean American Federation Grand Opening Celebration of its facility at San Tomas Park
Attended the Brand Opening and Ribbon Cutting of its new facility hosted by the Silicon Valley Korean American Federation with singing and dancing performances in celebration of the Korean Independence Day.

Event 38.  August 18, 2023, @11am, Legislative Appreciation Luncheon hosted by Mid‐ Peninsula Open Space District @ Cooley Landing Park & Education Center Attended the Legislative Appreciation Luncheon and networked with elected officials in Santa Clara and San Mateo Counties with a presentation from Mid‐Peninsula Open Space District on future planning on trails across the region.

Event 39.  August 18, 2023, @ 4pm, Indian Flag Raising Ceremony at Cupertino Civic Plaza 517
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7 Attended the Indian Flag Raising Ceremony in celebration of the India Independence Day hosted by the Cupertino‐Bhubaneswar Sister City Initiative.

Event 40.  August 19, 2023, @10:30am, the 76th Independence Day of India Celebration @ Ponderosa Park in Sunnyvale
Attended a neighborhood celebration of India Independence Day at Ponderosa Park in Sunnyvale.

Event 41.  August 23, 2023, @7:45am, meeting with neighbors and observing morning traffic and parking situations at Tesselations School in Cupertino Met with neighbors to observe the morning traffic and parking situations at Tesselations School located at the Regnart School site.  Also met with the Head of Tesselations School who was outside observing too.  I chatted briefly with the Head of School to exchange concerns on traffic and parking issues.

Event 42.  August 24, 2023, @4pm, meeting with a Cupertino Block Leader to exchange ideas Met with a Block Leader to receive feedback and exchange ideas on Cupertino’s Block Leader and Neighborhood Watch Programs.

Event 43.  August 26, 2023, @11am, Shin Shin Educational Foundation’s Annual Reporting and Celebration event
Attended the Annual event hosted by the Shin Shin Educational Foundation.  Board President reported on activities in 2023 and celebrated successes by volunteers in providing education needs to schools in rural China.

Event 44.  August 26, 2023, @3pm, Cupertino Night Market @ De Anza College Attended the Night Market hosted by AABC (Asian American Business Council) of the Cupertino Chamber of Commerce at De Anza College with continuous performances, a variety of merchandise venders, and 15+ food trucks serving residents and visitors from 3pm to 10pm.

Event 45.  August 27, 2023, @8:30pm, Interview by Scouts Interviewed by two scouts and answered their questions on government and civic engagement for fulfill one of the Scout’s badge requirements on civic engagement. 518
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8 Event 46.  August 27, 2023, @10:30am, High School Interact Club Presidents Training Meeting Attended the training meeting of 100+ Interact Club Presidents from high schools across the Bay areas @ Warm Springs Community Center in Fremont, and gave a speech on Leadership, Giving Back to the Community, and Civic Engagement.

Event 47.  August 27, 2023 @ noon, Monte Sereno’s City Picnic @ Vasona Park Attended the City Picnic hosted by the Mayor of Monte Sereno with networking opportunities with local elected officials as well as Valley Water, Silicon Valley Clean Energy, San Jose Water, and other agencies in Santa Clara County.

Event 48.  August 27, 2023, @2pm, Marimba Concert hosted by UChannel TV Youth Chamber @ Quinlan Center
Attended a fabulous Marimba Concert with City Manager Pamela Wu at Quinlan Community Center which showcased youth talent, passion, and dedication in music appreciation and enjoyment.

Event 49.  August 27, 2023, @6pm, Global Elegance hosted by the Rotary Club of Cupertino Attended the annual Global Elegance, showcasing world community service projects championed by members of the Rotary Club of Cupertino in collaboration and partnership with non‐profit organizations world‐wide.

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CITY OF CUPERTINO
Agenda Item
23-12532 Agenda Date: 9/6/2023
Agenda #: 10.

Subject: Update on renewed Friendship City Organizations Receive update on renewed Friendship City Organizations CITY OF CUPERTINO Page 1 of 1 Printed on 8/29/2023
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CITY COUNCIL INFORMATIONAL MEMORANDUM
Meeting: September 6, 2023
To: Cupertino City Council
From: City Manager’s Office
Re: Update on the Renewed Friendship City Organizations Background
The Cupertino City Council established its Friendship City program in September 2016.

Although less formal than a Sister City relationship, a Friendship City relationship is an additional way to foster cultural exchange at a local level.

The Friendship City relationships between Cupertino and the affiliate cities are coordinated and managed by local committees comprised of community members.

These committees maintain communication with the affiliate city, while coordinating and implementing activities related to the Friendship City Program.

Each Friendship City relationship is established for a two-year period. In 2021, the City approved the following Friendship City relationships:
 New Taipei City, Taiwan
 Taichung, Taiwan
 Tongxiang, People’s Republic of China
 Xianning, People’s Republic of China
 Yilan, Taiwan
In July, staff reached out to the above-mentioned Friendship Cities to begin the renewal process for these relationships. All Friendship Cities, with the exception of Yilan, Taiwan, responded to the request expressing their interest to renew and provided the necessary documentation, as outlined in the Sister and Friendship City policy (Attachment A). The renewal documents serve to document the activities of each organization and meet the requirements for renewal from the Sister City Policy. The renewal documents are included in this memo as Attachments B, C, D, and E.

Staff has reviewed the applications and the City Manager has approved the renewal in alignment with the less formal structure of these agreements and to help facilitate the 521
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process. These four Friendship City relationships are now renewed for another two years until August 2025.

Staff intends on providing proposed revisions to the Sister and Friendship City policy to Council later this year. At that time, the Council may wish to further refine the processes identified in the policy to facilitate these relationships.

Sustainability Impact
None.

Fiscal Impact
The Sister and Friendship City policy (Attachment A) states that Friendship Cities are not eligible for City funding. Although there will be staff time involved to facilitate the Friendship City program, fiscal impacts to the City general fund are minimal. _____________________________________
Prepared by: Astrid Robles, Senior Management Analyst
Reviewed by: Tina Kapoor, Deputy City Manager
Matt Morley, Assistant City Manager
Christopher D. Jensen, City Attorney
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – Sister and Friendship City Policy
B – New Taipei City Renewal Documents
C – Taichung Renewal Documents
D – Tongxiang Renewal Documents
E – Xianning Renewal Documents
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Council Policy
CITY OF POLICIES AND GUIDELINES ON Attachments:

SISTER CITIES, FRIENDSHIP

CITIES, AND INTERNATIONAL

CUPERTINO

DELEGATIONS

FOR THE CITY OF CUPERTINO
Effective Date: Responsible Department:

November 20, 2018 City Manager' s Office
Related Policies & Notes:

Prior versions: 2005, 2013, 2016
Background:

Currently, Cupertino has four active Sister Cities registered with Sister Cities International; the cities of Toyokawa, Japan; Hsinchu, Taiwan; Copertino, Italy; and Bhubaneswar, India. In addition, Cupertino has established several Friendship City relationships and attracts many international delegations for cultural, educational, business, and economic development reasons.

SISTER CITIES
Intent of Sister City Affiliations:

The City recognizes the value of developing people- to-people contacts as a way to further international communication and understanding. Sister City partnerships have proved very successful in fostering educational, technical, economic, and cultural exchanges.

Sister City relationships are effective only when organizations of interested residents in one community work with interested residents in another city to promote communication and understanding among people of different cultures.

The ideal affiliation should involve a large number of citizens and organizations in both cities, engaging in exchanges of people, ideas and cultures on a long-term, continuing basis.

The City intends to provide limited financial support to those Sister City Committees that operate student exchange programs. Those Sister City organizations which do not operate student exchange programs shall be completely financially independent from the City, except for limited City facility use.
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Sister City Citizen Committee Responsibilities ( Receiving City Support):

Identify, manage, coordinate, and implement all activities related to the Sister.

City Program.

Establish a formal, incorporated 501( c)( 3) structure, with officers and appropriate functional subcommittees.

Solicit donations and in-kind contributions from the local community as appropriate.

Maintain communication with the affiliate Sister City Committee, ensuring the counterpart committee is equally committed to the program.

Finance activities from fundraising efforts and resources other than public funding, including all travel and program expenses, postage, fax, copying, and printing costs for events in which the City is participating. This includes fundraising or securing gifts for special celebrations, such as anniversaries.

Prepare a detailed budget including funds raised through fundraising efforts and public (City) funding for events and activities and keep track of expenses. The budget should show funds available and should identify adequate, ongoing funding sources for program activities.

Work with City staff at least two months in advance in arranging official promotional gifts and meetings for foreign delegations. For local groups traveling abroad and bringing promotional gifts, similar notice is required, unless waived by the City Manager.

Meet the following eligibility requirements/ annually submit to staff liaison:
o Proof of 501( c)( 3) status
o Detailed accounting of prior year actual revenue and expenses o Summary of prior year activities
o Proposed budget plan
o Fundraising plan
Sister City Citizen Committee Responsibilities ( Not Receiving City Support):

Identify, manage, coordinate and implement all activities related to the Sister City Program.

Establish a formal, incorporated 501 ( c) ( 3) structure, with officers and appropriate functional sub committees.

Solicit donations and in-kind contributions from the local community as appropriate.

Maintain communication with the affiliate Sister City Committee, ensuring the counterpart committee is equally committed to the program. 524
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City of Cupertino Responsibilities (With regard to City supported Sister City Committees):

Coordinated through the City Manager' s Office, the City will serve as a support for programs and activities by:

Providing for set-up and complimentary access to a large City facility for three community events per Sister City per fiscal year. All cost of food, drinks, and materials are the responsibility of the Sister City Committee.

Accepting gifts from the Sister City. Said gifts are the property of the City and shall be displayed at a City facility or distributed at the City's discretion.

Providing up to $2,500 per year for a Sister City with a student exchange program of 5 to 9 student delegates and up to $5,000 per year for a Sister City with a student exchange program of 10 or more student delegates.

Coordinated through the City Manager' s Office, the City will serve as a support for Sister City programs and activities by:

Providing access to postage, fax, copying, and printing equipment to Sister City Committee members for support of Sister City events in which the City is participating. City staff is not responsible for preparing mailings or printed materials.

Providing the use of meeting room space (up to 18 per calendar year) at no cost to the Sister City Committee for related activities. Meeting room space does not include Cupertino Community Hall or the Quinlan Community Center' s Cupertino Room.

Providing City promotional gift items typically given at community events to government representatives from visiting countries. These include, but are not limited to: logoed t-shirts, pens, reusable bags, and lapel pins. The cost of each promotional gift or gift bag shall not exceed $25. Additional gifts presented to members of a Sister City delegation are the responsibility of the Sister City Committee.

Facilitating participation of City officials.

City of Cupertino Responsibilities (With regard to non-City supported Sister City Committees):

The City shall maintain registration with the Sister Cities International organization.

Provide the use of meeting room space ( up to 4 per calendar year) at no cost to the Sister City Committee for related activities. For additional meeting room uses, non-City supported Sister City Committees shall be charged the facility use 525
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resident rate on the rental of any City facility. Meeting room space does not include Cupertino Community Hall or the Quinlan Community Center' s Cupertino Room.

Travel and Program Expenses:

Program Expenses:

The City Council will, as part of its annual budget adoption process, establish a program budget for anticipated City supported Sister City program activities.

This budget will include up to $2, 500 for a Sister City with a student exchange program of 5 to 9 student delegates and up to $5,000 for a Sister City with a student exchange program of 10 or more student delegates, as funds allow. An additional $5,000 will be considered for adult delegation visits every 5 years. This adopted budget, less the cost of the Sister City membership fee, will be remitted to the Committee once an accounting of the prior year expenditures have been received and reviewed by the Finance Department. These funds represent the City' s sole monetary commitment each fiscal year with the exception of the items listed above.

Travel Expenses:

The City will pay for 50% of one trip per year, per Councilmember, provided the trip is in conjunction with an official delegation.

All other Council or City Staff travel for Sister City programs must be funded by Sister City Committee fundraising activities, or by the individual traveling council or staff member, unless authorized in advance by the City Council.

New Affiliations:

To ensure that there is a broad base of community support for a global partnership, the citizen committee responsible for implementing the Sister City Program should include at least 10 active Cupertino residents who are committed to making a new affiliation successful.

No more than one Sister City relationship may be established in any given country.

Proposal Process
The new Sister City Committee will prepare and submit the following to the City of Cupertino:

Detailed demographic profile of the prospective city
Application for a formal, incorporated 501( c)( 3) structure, with officers and appropriate subcommittees
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Documentation of broad-based community support, with a minimum of 10 members on the organizing committee
A preliminary program plan outlining objectives and funding sources If the City Council adopts a resolution establishing a new Sister City relationship, the City shall register that new Sister City with Sister Cities International. If the proposed new Sister City Committee desires to operate a student exchange program (with a minimum of 5 student delegates and open to any school within the Cupertino Union School District and/ or Fremont Union High School District boundaries) and demonstrates that it can meet its responsibilities as a City supported Sister City Committee, the City shall adjust the budget for the following year to provide for appropriate financial support.

Terminating a Sister City Affiliation
While regrettable, it is sometimes necessary for a city to terminate a Sister City affiliation. Sister City affiliations are meant to be long-standing, official city linkages that involve extensive community participation beyond government. For a variety of reasons, a Sister City relationship may lose community interest and support, and Cupertino or the Sister City may opt to terminate the Sister City relationship.

If a Sister City affiliation is inactive for a period of three years and there is a lack of community support for the Sister City relationship to continue, the City may initiate the process to terminate the Sister City affiliation with the Sister City and Sister Cities International.

FRIENDSHIP CITIES
Intent of Friendship City Affiliations:

The City recognizes the value of developing people-to-people contacts as a way to further international communication and understanding. Friendship City partnerships can be effective in fostering increased global cooperation and communication.

Friendship cities may be established, however, they will not be considered official Sister Cities and are not eligible for City funding.

New Affiliations:

All proposed Friendship City relationships must have Councilmember and community sponsorship and be approved by the City Council. The Friendship City will submit a Friendship City application to the City of Cupertino, which requires sponsorship from a Council Member and a citizen' s committee to ensure the new affiliation is successful. If approved, the City will issue a signed Letter of Intent establishing the Friendship City 527
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relationship.

A Friendship City affiliation will be effective for two years and may be renewed every two years.

Friendship City Committee Responsibilities:

Identify, manage, coordinate, and implement all activities related to the Friendship City program.

Maintain communication with the affiliate Friendship City, ensuring the counterpart is equally committed.

Work with city staff at least two months in advance in arranging official promotional gifts and meetings for foreign delegations. For local groups traveling abroad and bringing city gifts, similar notice is required, unless waived by the City Manager.

City of Cupertino Responsibilities:

Coordinated through the City Manager' s Office, the City will:

Issue a signed Letter of Intent establishing the Friendship City relationship in an effort to assist international delegation visits from the Friendship City Provide City promotional items typically given at community events to government representatives from visiting countries as the budget allows. These may include, but are not limited to: City t-shirts, pens, reusable bags, and lapel pins, to the extent there remains a budgeted amount to purchase such gifts and promotional items.

Facilitate meetings with City officials.

Conduct tours of city facilities.

Travel and Program Expenses:

Friendship City travel and program expenses will be treated as those of international delegations and will follow the guidelines outlined in this policy in the " Travel and Program Expenses" section under " INTERNATIONAL DELEGATIONS."
Renewal of Friendship City Relationship
Friendship City renewals should be requested by an official of the Friendship City with support of the Friendship City Committee. The Friendship City Committee should submit a renewal application, which includes:
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Intent to renew letter from Friendship City official on official letterhead.

Summary of Friendship City delegation visits to Cupertino hosted by the Committee over the last two years.

Summary of Cupertino delegation visits hosted by the Friendship City.

Description of activities held and outcomes.

How the relationship has been mutually beneficial for Cupertino and the friendship community.

An updated profile of the Friendship City Committee.

Notification of the intent to renew the Friendship City relationship should be sent to the City at least 60 days in advance to ensure sufficient time to process the renewal. Friendship City Committees will also be expected to prepare a presentation to the City Council when the renewal is being considered.

Terminating a Friendship City Affiliation:

A Friendship City affiliation will be effective for two years. After two years, the Friendship City affiliation will automatically expire unless renewed.

While regrettable, it is sometimes necessary for a city to terminate a Friendship City affiliation prior to the end of the two year term. For a variety of reasons a Friendship City relationship may no longer be mutually beneficial, and Cupertino or the Friendship City may opt to terminate the Friendship City relationship.

INTERNATIONAL DELEGATIONS
Intent of International Delegations:

The City recognizes the value of developing people- to-people contacts as a way to further international communication and understanding.

Delegations must contact city staff at least 60 days in advance in arranging meetings, unless waived by the City Manager.

City of Cupertino Responsibilities:

Coordinated through the City Manager' s Office, the City will:

Provide City promotional items typically given at community events to government representatives from visiting countries. These may include, but are not limited to: City t-shirts, pens, reusable bags, and lapel pins, to the extent there remains a budgeted amount to purchase such gifts and promotional items.

Facilitate meetings with City officials.

Conduct tours of city facilities.
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Travel and Program Expenses:

Program ExpensesThe City Council will, as part of its annual budget adoption process, establish a program budget for promotional items for delegations. Promotional gifts or gift bags shall not exceed the cost of$ 25 each.

Councilmembers on an official delegation visit to a Sister City or Friendship City typically present a gift to the host city dignitary, such as the Mayor. This host-city dignitary gift should not exceed $ 200.

Travel ExpensesInternational travel shall be at the expense of the traveling Councilmember unless authorized in advance by the City Council.
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Tiny Kapoor
Deputy City Manager
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
July 22, 2023
Board of Directors
Jerry Liu, President
Angela Chen, Treasurer
Gilbert Wong, Secretary
21837 Lomita Avenue
Cupertino, California
95014
United States of America
www.cupertinonewtaipei.org
Dear Ms. Kapoor,
On behalf of the Cupertino-New Taipei Friendship City
Association, I am writing to formally request the renewal of the Friendship City status between the City of Cupertino and New Taipei City. Attached are the supporting material for this request as outlined in your email of July 12, 2023. Please feel free to reach out if there are any questions or any additional material that we can provide.

Best Regards,
Jerry Liu
(408) 314-9909
[email protected]
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Cuperno-New Taipei Friendship City Renewal Applicaon
● Summary of New Taipei City delegation visited Cupertino hosted by the committee over the last two years. If none, please explain why.

Due to the impact of global pandemics, the New Taipei City only opened for delegaons/students to visit foreign countries in early 2023. The acvies outlined in bullet #3 covers all informaon for this secon.
● Summary of Cupertino delegation visits hosted by the CNTFCA. If none, please explain why not.

On October 7th, 2022, CNTFCA Board Member Angela Chen visited the Department of Educaon of New Taipei City, bringing a leer, proclamaon and gis from Cuperno to New Taipei City.

On April 19th, 2023, the CNTFCA facilitated a visit of Cuperno mayor’s delegaon of six members to New Taipei City. The leaders of the two cies exchanged informaon and updates of their cies, and both emphasized the importance of connuing to strengthen the friendship between the two cies.
● Description of activities held and outcomes. If none, please explain why not.

The Cuperno New Taipei City Friendship City Associaon (CNTFCA) helped facilitate and advocated for a Memorandum of Understanding between the Ministry of Educaon for New Taipei City (NTC) and the Cuperno Union School District (CUSD) Board of Educaon which was signed on August 2022. In April 2023, a group of middle students, teachers, and educaon officials from New Taipei City spent a week at Lawson Middle School where the NTC students were able to spend me with Cuperno students and mutually learn from each other. There is a return visit planned for the Fall of 2023 for teachers and administrators from CUSD to visit New Taipei City and spend me with their students and educators.
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● How the relationship has been mutually beneficial for Cupertino and the Friendship Community.

The formal relaonship between Cuperno and New Taipei City has facilitated sponsorship and support for the mutual informaon exchanges and visits between leaders/educators and students of the two cies. This has enabled both communies to beer understand each other’s cultures and learn from best pracces from both sides. The acvies that CNTFCA has facilitated have been welcomed by educators in both communies, and there are plans in place to expand these exchanges to addional schools in both cies in 2024.
● An Updated Profile of the Friendship City Committee
The Cuperno-New Taipei Friendship City Associaon is a Non-Profit Organizaon with 501.3.(C) tax status. The CNTFCA partners with staff of New Taipei City and local organizaons to conduct culture, city operaon, and educaon exchange acvies.

The current CNTFCA Administrave Board consists of three key posions including President Jerry Liu , Treasurer Angela Chen and Secretary Gilbert Wong. 536
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Cupertino Taichung Friendship Cities Renew Presentation 537
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Letter of intent - Renewal Cupertino TaiChung Friendship Cities City of Cupertino and City of TaiChung have been established great relationship for almost a decade.

This letter of intent is to continue the partnership with City of Cupertino to foster cultural, educational, economic, and social ties between the two cities.

Thank you for the time and consideration from City of Cupertino for the renewal.

Sincerely
Weini Liem
President of Cupertino Taichung Friendship Cities association 538
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Summary for TaiChung visits to Cupertino hosted
by the Committee during 2021 and 2022
● TaiChung Municipal Chung Shan Junior High school Baseball team visited Bay Area to attend 2022 Little League Baseball World Series in Aug 2022
● TaiChung National Chung Hsing University Chancellor visited Cupertino and Bay Area in May 2023
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Summary for Cupertino visits TaiChung City
hosted by the Committee during 2021 and 2022
● Visited TaiChung City when CONVID-19 is under control ● Four CTFC members visited TaiChung City in September 2022.

Taichung city official extended a cordial welcome
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Activities and Outcomes
● Hosted an online conference for both Cupertino Junior high schoolers and TaiChung Junior high schoolers. There were more than 60 Junior senior high schoolers participated in the event in April 2021 ● Participated Cupertino City “Kids’ N Fun“ festival in August 2021 ● Hosted an online conference for both Cupertino high schoolers and TaiChung high schoolers. There were more than 80 senior high schoolers participated in the event in October 2021
● Donate hundred of toys to the fire department in December 2021 ● 541
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Activities and Outcomes
● Participated Chinese New Year Culture event in Jan 2022 ● Hosted an online conference for both Cupertino high schoolers and TaiChung high schoolers. There were more than 80 senior high schoolers participated in the event in October 2022
● Holded a symposium on “Online lectures before the Election” in November 2022
● Donate hundred of toys to the fire department in December 2022 ●
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2023 Events & Activities Planning
Spring
● Chinese New Year celebration event
Summer
● Host conference for Cupertino residents to introduce Chinese Food Culture and application of Soy Sauce.
● Cupertino Young musicians hold a Summer xylophone concert 543
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2023 Events & Activities Planning
Fall
● Hosting online conference for Cupertino high schoolers and TaiChung high schoolers
Winter
● Show appreciation to Cupertino Union School District and Police Department 544
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Establish good relationship to benefit both
Cupertino and TaiChung Cities
● Fostering a growth relationship for Cupertino and Taichung cities via the activities, events and exchange student programs
● Enable Cupertino residents and community members to learn different culture and education systems
● Continue to promote virtual events via internet conference tools to preserve the strong relationship during the pandemic
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2023-2024 Cupertino and Taichung Friendship
Cities Committee
● President: Weini Liem
● First Vice President: Carol Wang
● Chief Secretary: Pingping Lee
● Chief Financial Officer: Diana Tang
● Council Members: Ann Tzeng, Lillian Tsai, Hsin-Ling Tsai, Polly Hu, Chiou-Pying Cheng and Meichen Lin
● Chief Advisor: Anita Fu
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Cupertino-Tongxiang July, 28, 2023
Friendship City Association
Dear Ms. Kapoor,
On behalf of the Cuperno-Tongxiang Friendship City Associaon, I am wring to request the renewal of the Friendship City status between the City of Cuperno and the City of Tongxiang.

We sincerely hope to connue the formal friendship-city relaons between Cuperno and Tongxiang to provide opportunies and encourage culture, trade and educaon exchanges between the two cies. I believe our friendship will foster posive communicaon and mutually beneficial acvies.

Below is the supporng material to respond to requests outlined in your email of July 12, 2023. Please feel free to contact me if there are any quesons or more informaon is needed.

Sincerely,
Angela Chen
408-858-2368
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Cuperno-Tongxiang Friendship City Renewal Applicaon:
● Summary of your Friendship delegaon visits to Cuperno hosted by the Commiee over the last two years. If none, please explain why not.

All internaonal exchanges and local group gatherings and events were on hold due to the global pamdemic. There have been no vising acvies since 2020.
● Summary of Cuperno delegaon visits hosted by the Friendship City Associaon. If none, please explain why not.

All internaonal exchanges and local group gatherings and events were on hold due to the global pamdemic. There have been no vising acvies since 2020.
● Descripon of acvies held and Outcomes. If none, please explain why not.

In the beginning of the global padenmic and during the shelter-in-place period, there was a severe shortage of face masks. Friends of Tongxiang City sent face masks to us as a support for the friendship city. Also, in the past two years, we oen met/talked online to discuss future exchange plans. ● How the relaonship has been mutually beneficial for Cuperno and the Friendship Community.

Since the establishment of the formal Friendship City relaonship in 2017, Tongxiang City built a statue of two connected city logos (as pictured in the Leerhead on top of this document), which resides in a popular city park for residents of Tongxiang to view and recognize the importance of the friendship between the two cies. Cuperno city officials aended the annual Internaonal Economic and Trade Fair in Tongxiang from 2017 unl the Covid hit in 2020. In 2018, a group of Silicon Valley local business owners joined Cuperno city officials to aend Tongxiang’s Internaonal Trade Conference. They explored business opportunies that could expand the potenal for new investments and cooperaon. Tongxiang City hopes for further post-pandemic exchanges in all areas with Cuperno and connues the friendship between the two cies .
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The acvies facilitated by the Cuperno-Tongxiang Friendship City Associaon enabled both communies to beer understand each other’s culture and learn best pracces from both sides.
● An Updated Profile of the Friendship City Commiee.

The Friendship City Committee: Cupertino-Tongxiang
Friendship City Association
Vision: Promote mutual understanding and cooperation
through direct city-to-city, person-to-person connections.

Mission: Work to create friendly relationships based on culture, education, information and trade exchanges.

Name of person requesting continuation of the
friendship city relationship: Angela Chen
Title: President of the Cupertino – Tongxiang Friendship City Association
Name of person requesting continuation of the
friendship city relationship: Peggy Chien
Title: Co-President of the Cupertino – Tongxiang Friendship City Association
Introduction of Tongxiang Friendship City:

Name and Country of the Friendship City: Tongxiang City, Zhejiang Province, People’s Republic of China
Tongxiang is a city located in northern Zhejiang Province at the geographical center of the Shanghai-Hangzhou-Suzhou (Huhangsu) triangle. The Huhangsu triangle is formed by 3 major cities all within one hour of automobile transportation among one another. It is a nationally targeted economic development area.

Thanks to its premium geographical location, the city enjoys a great market potential for development of local industries. The city is focusing on economic growth through high technology development. They would like to learn more from Cupertino and Cupertino can benefit from resources and supplies available from Tongxiang.

Tongxiang City Profile:

The Tongxiang area has been known as the land of fish and rice of China. It is the home of the silk industry, and a place of beautiful scenery and rich cultural heritage.

The city boasts many historic and cultural sites, including the ancient town-in-water of Wuzhen, the famous Fuyan Temple, the former residence of Mao Dun – a renowned novelist, YuanYuanTang – the former residence of artist Feng Zikai, and the Juntao Art Institute in honor of artist Qian Juntao.

Tongxiang is also known for its splendid legacies of the Majiabang and Liangzhu Cultures of the Neolithic Age and a water town culture nurtured by rivers and canals.

Tongxiang New Industrial Development Zone: The Tongxiang Municipal Government always adopts an enterprise-oriented approach and provides support for businesses in every stage of development through a one-stop administrative system, with 549
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positive actions to implement supporting policies, reduce the burden on enterprises, develop industrial clusters and attract excellent professionals. As the initiator of a three-in-one governance pattern (i.e. a combination of rule by law, rule by morality and self governance) in China, Tongxiang has been trying to involve more civil forces to improve its public services and is growing into an important investment destination with unique competitive advantages in the Yangtze River Delta region. Having retained its historic charm and vigor, Tongxiang is now shining more brilliantly than ever. With the aim of building a city performing excellently in manufacturing, services and internet economy, it has been striving to develop into an influential ″city of innovation″, enabling business development and entrepreneurship in the Yangtze River Delta region.

City of Tongxiang’s contact information:

Tongxiang City Bureau of Commerce
No. 6, Zhenxing East Road (East), Wutong Street, Tongxiang City, Zhejiang Province, China
Telephone Number: 0573-88107162 Fax 0573-88110321
Frie
Revealing the Statue of Friendship with the two city logos connected together represenng friends forever
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Dear Ms. Wei Hong, Mayor of Cupertino,
In 2018, through the introduction of Mr. Song
Min, Chairman of Cupertino-Xianning Sister City
Committee, Xianning and your city became sister
cities. Over the years, leaders from both municipal
governments have visited each other numerous
times and engaged in various forms of exchange
and cooperation, such as library book donations and
youth art exchanges.

In November 2022, on the occasion of preparing
for the first "Together for a Better Future" Youth
Calligraphy and Painting Festival of International
Sister Cities in Xianning, Mr. Darcy Paul, the then
Mayor of Cupertino, wrote a letter to Mr. Yang Jun,
the Mayor of Xianning, wishing the festival great
success and expressing sincere wishes for
continued exchanges and friendship between the
two cities in the future. I firmly believe that with
your strong support, the sister-city relations
between the two cities will be further strengthened.

Meanwhile, we cordially invite you and your
delegation to attend the "Meet in Mid-Autumn
Festival · Hubei International Exchange Week"
organized by the People's Government of Hubei
Province from September 23 to 28, 2023, and visit
Xianning at your convenience.

I am glad to hear that in October this year, the
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US-China Cultural Communications Association will
organize ten American painters, including those
from Cupertino, to visit Xianning. They will hold an
art exhibition entitled "China in the Eyes of
Americans: Telling the Story of Xianning with
Paintbrushes" in both Cupertino and Xianning. I
sincerely wish for the complete success of this
event!
May the friendship between our two cities
endure, businesses thrive and people find
happiness.

Director of Foreign Affairs Office of
Xianning Municipal People's Government
July 4, 2023
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• Summary of Friendship City delegation visits to Cupertino hosted by the Committee over the last two years.

In November 2022, entrusted by the foreign affairs Office of Xianning Municipal People's Government, Mr. Song Min, Chairman of the Cupertino-Xianning Friendship City Committee, paid a visit to the staff of Cupertino Municipal Government, Cupertino City Council, and Friendship City Committee on the occasion of Thanksgiving Day. To this end, our city specially designed the festival greeting cards signed by the leaders of the Foreign Affairs Office of Xianning Municipal People's Government and mailed characteristic gifts of Xianning to strengthen contact and enhance friendship.
• Summary of Cupertino delegation visits hosted by the Friendship City.

In May 2021, in order to enhance mutual understanding and exchanges between teenagers in Xianning and Cupertino, Xianning collected the excellent works of 19 students from Wenquan Middle School to participate in the "Father in My Eyes" Painting Exhibition - 2021 Post-epidemic Art Exhibition Series by Chinese &American Youth sponsored by US-China Cultural Communication Association. Darcy Paul, the former mayor of Cupertino, wrote to students at Wenquan Middle School: "I am writing to thank you for your outstanding efforts in the field of art and promoting friendly relations between Cupertino, California, United States of America and Xianning, Hubei Province, China."
In March 2023, Xianning held the first "Together for a Better Future" Youth Calligraphy and Painting Festival of International Sister Cities. 116 artworks from seven international sister/friendship cities of Xianning, including Cupertino, were collected for the exhibition. Darcy Paul, the then Mayor of Cupertino, sent a congratulatory video and letter. Students from Cupertino created 17 excellent artworks for the exhibition, which significantly enhanced the mutual understanding among teenagers from the two cities and yielded positive results and influence.

It is glad to hear that in October this year, the US-China Cultural Communications Association (Cupertino-Xianning Sister City Committee will organize ten American painters, including those from Cupertino, to visit Xianning. They will hold an art exhibition entitled "China in the Eyes of Americans: Telling the Story of Xianning with Paint Brushes" in both Cupertino and Xianning. I sincerely wish for the complete success of this event!
Meanwhile, we cordially invite the Mayor, vice Mayor, and city of council of Cupertino and your delegation to attend the "Meet in Mid-Autumn Festival · Hubei International Exchange Week" organized by the People's Government of Hubei Province from September 23 to 28, 2023, and visit Xianning at your convenience。
• Description of activities held and outcomes.

Activities and outcomes included above.
• How the relationship has been mutually beneficial for Cupertino and the friendship community.
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The activities listed above show how the friendship city relationship has benefited youth particularly in the arts for both Xianning and Cupertino. • An updated profile of the Friendship City Committee.

Located in the south bank of the Yangtze River, Xianning is called “the southern gateway to Hubei” and it is a city known as the “Fragrant City and Hot Spring Capital”. The Chinese phrase “Xianning” appeared for the first time in the book of Changes, meaning “peace in all corners”.

Xianning is famous for its three historical reasons. Firstly, it is one of the three birthplaces of the Chinese Ancient Tea Horse Road. Famous people such as Empress Dowager Cixi and Karl Marx both talked about tea of Xianning. Secondly, the Battle of Red Cliffs took place in Chibi City (a county-level city of Xianning City) is a typical example in the Chinese history of defeating enemy troops with a force inferior in number as well as in power. Thirdly, the Tingsiqiao Battle, which took place during the Northern Expedition in Xian’an District of Xianning City, showed the Iron Army Spirit that overawed the enemy.

Nowadays Xianning owns three characteristics. The first is fragrance. Xianning is Chinese hometown of sweet osmanthus which is the city flower because of its national-leading species quantity, number of ancient trees, planting base area, fresh osmanthus production and quality.

Besides sweet osmanthus, Xianning is also famous for its wine, bamboo, tea and camellia. All the fragrance of these local resources makes Xianning the Fragrant City of China. The second is its virescence. Because the forest coverage rate of Xianning is 54.2%, and excellent air quality days exceed more than 350 throughout the year, negative oxygen ion content is high in the local place. Xianning Successively won the Prize of China Habitat Environment Model, Chinese Best Living City, Attractive city, Virescence Model City, Garden City. Besides it ranks among the first tourism standardization demonstration cities throughout the country together with Suzhou, Qingdao, and Lijiang. The third is convenient transportation for its 138 kilometers golden waterway of Yangtze River, 1 hour expressway to Wuhan Tianhe airport, and 313 kilometers highway. At present, Xianning takes the lead in entering into a High-speed Era especially for the opening of Wuhan-Guangzhou high-speed railway and Wuhan-Xianning inter-city railway.

Being rich in resources, Xianning has a relative advantage in cost which is far lower than that in the richer coastal areas, including costs in labor, water, electricity, gas and land. Xianning has an abundant of water resources, with water here of Class B and hot springs running all over the year. Xianning also has a favorable industrial chain with its relatively complete industrial system.

There are now many enterprises both at home and abroad which rank top 500 in the world in Xianning, such as Red Bull of Thailand, Uni-president Corporation of Taiwan, China Resources Enterprise of Hong Kong, and Country Garden Holdings of Guangdong Province. Xianning is also, with the idea of “Enterprises and entrepreneurs rank first”, aiming at creating a highly-efficient government environment. It is trying to spread the notion of welcoming business trade and respecting businessmen. Xianning has been awarded “Financial Credit City of Hubei” for 11 years in a row. The city is now progressing towards the target of “promoting green rise, building a robust city in Southern Hubei, making it a “Fragrant City and Hot Spring Capital” as well as an important hub city in the Nanchang-Wuhan-Changsha city cluster. In 2013, the GDP of Xianning reached 87.211 billion Yuan, up 10.6% than the previous year. And for years the growing rate of 554
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Xianning’s major economic indicator has been higher than that of the average level of the whole province. Just like a teenager growing fast, Xianning is enjoying a sound momentum of development, full of vigor and vitality.
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CITY OF CUPERTINO
Agenda Item
22-11732 Agenda Date: 9/6/2023
Agenda #: 11.

Subject: Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2023 Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2023 CITY OF CUPERTINO Page 1 of 1 Printed on 8/29/2023
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CITY COUNCIL STAFF REPORT
Meeting: September 6, 2023
Subject
Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2023 Recommended Action
Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2023 Reasons for Recommendation
Background
On April 24, 2023, the Audit Committee accepted the City’s Investment Policy. Committee member Fruen asked given the date of the letter, does it incorporate the needs for increased liquidity. Chandler noted that the change to the policy does not affect the liquidity rate or the change in strategy. On May 16, 2023, 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 quarterly Treasurer's Investment report."
Per the referenced code provisions, a Treasurer's Investment Report shall be submitted to the City Council quarterly.

Treasurer's Investment Report
The report provides an update on the City's investment portfolio for the month ending June 30, 2023. The report is as of July 17, 2023.
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2 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, 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 $236.4 million, a $8.1 million increase from the prior quarter.

Cash and Investments – General Ledger Balance
Fund Type Quarter Ending
March 31, 2023
Quarter Ending
June 30, 2023
General Fund 124,016,386 136,789,896
Special Revenue 43,657,350 42,474,048
Debt Service 2,322,250 6,850
Capital Projects 37,802,793 38,625,890
Enterprise 11,746,044 11,487,826
Internal Service 8,779,054 7,045,655
Total $228,323,878 $236,430,164
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3 The $236.4 million in cash and investments includes $47.3 million in cash, $21.4 million in cash equivalents, $150.5 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. 559
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4 Cash and Investments – General Ledger Balance
Quarter Ending
March 31, 2023
Quarter Ending
June 30, 2023
% of
Portfolio
Cash in banks and on hand
Operating Checking (Wells Fargo) 39,300,196 47,251,612 20% Workers' Compensation Checking (Wells Fargo) 29,999 42,548 0% Payroll Checking (Wells Fargo) - - 0%
Restricted for Bond Repayments1(BNY Mellon) - - 0%
Petty Cash and Change 4,700 3,586 0%
Cash Equivalents
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5 Local Agency Investment Fund 21,242,141 21,385,575 9% Investments
Investments (Chandler) 150,506,791 150,506,791 64%
Restricted for Pension2(PARS) 17,240,051 17,240,051 7%
Total Cash and Investments3 $228,323,878 $236,430,164 100% 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
March 31, 2023
Quarter Ending
June 30, 2023
% of
Portfolio
Cash in banks and on hand
Operating Checking (Wells Fargo) 39,553,713 47,980,304 20% Workers' Compensation Checking (Wells Fargo) 31,312 38,002 0% Payroll Checking (Wells Fargo) - - 0%
Restricted for Bond Repayments1(BNY Mellon) - - 0%
Cash Equivalents
Local Agency Investment Fund 21,281,569 21,425,004 9%
Investments
Investments (Chandler) 149,670,106 149,161,767 63%
Restricted for Pension2(PARS) 18,329,961 19,088,859 8%
Total Cash and Investments3 $228,866,661 $237,693,936 100% 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.

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. 561
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6 The City's LAIF account had a balance of $21.4 million. The quarterly interest rate was

3.36%. The City did not make any deposits or withdrawals in the quarter ending June 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 $149.2 million, compared to $149.7 million at the end of the previous quarter. The table below includes historical comparisons of the City's portfolio:
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7 March 31,
2023
June 30, 2023
Market Value 149,670,106 149,161,767
Par Value 156,579,547 157,278,641
Book Value 156,313,174 156,959,650
Average Maturity 2.69 years 2.42 years
Average Modified Duration 2.31 2.06
Average Purchase Yield 1.88% 1.95%
Average Market Yield 4.41% 5.11%
Average Quality1 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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8 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 $19.1 million, an increase of $0.8 million from the prior quarter due to investment gains. The Section 115 OPEB Trust had a balance of $34.7 million, an increase of $1.4 million from the prior quarter due to investment gains.

The quarterly investment returns were 4.23% 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 June, one-year and two-year Treasury yields increased. 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 5.40% and 4.87%, respectively.

The one-year Treasury yield increased by 76 basis points, and the two-year Treasury yield increased by 81 basis points from March 31, 2023. The yield of the City's investment 564
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9 portfolio was 5.11%, lower than the one-year Treasury yield but higher than the two-year Treasury yield and LAIF.

Cash Flow History
Historical revenues, expenditures, and liquidity ratios are presented below:
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10 As the City's portfolio becomes more or less liquid over time, the ratio of cash and cash equivalents to revenues and expenditures will increase or decrease, respectively. The 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 June 30, 2023, the liquidity ratio was 2.5 and 2.9 for revenues and expenditures, respectively. The City will monitor inflows and outflows during FY 2023-24 and bring recommendations for the City's investment portfolio as necessary and applicable.

As of June 30, 2023, the City had $68.7 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 2023-24 Adopted Budget, the City estimated the following cash flow forecast for FY 2023-24:
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11 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 567
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12 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 long-term 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: __________________
Pamela Wu
City Manager
Attachments:

A – Chandler Investment Report June 2023
B – Chandler Custodial Statement June 2023
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13 C – PARS Pension and OPEB Account Statement June 2023 D – LAIF Account Statement June 2023
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CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com

INVESTMENT REPORT
Period Ending June 30, 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 June 30, 2023
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SECTION | Section 1 | Economic Update
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Economic Update



Recent economic data continues to suggest 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. Inflationary trends are subsiding, but core levels remain well above the Fed’s target. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will remain data dependent as they tread cautiously going forward.

At the June meeting, the Federal Open Market Committee paused in their rate hiking campaign after ten straight rate increases and left the target Federal Funds rate in the current range of 5.00 - 5.25%. Market participants viewed the FOMC’s decision as a ‘hawkish’ pause, expecting further tightening in the future, primarily based on the updated release of the FOMC’s Summary of Economic Projections (SEP) forecast which reflected a stronger economic outlook and higher rates compared to the March forecast. We believe the resiliency of future economic data will determine if the Federal Reserve can stay on hold for a period of time or will be forced to tighten policy further to bring inflation back down towards their 2% policy objective.

The yield curve remained inverted in June. The 2-year Treasury yield surged 50 basis points to 4.90%, the 5-year Treasury yield rose 40 basis points to 4.16%, and the 10-year Treasury yield increased 19 basis points to 3.84%. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -106 basis points at June month-end versus -76 basis points at May month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was +6 basis points.

The inversion between 3-month and 10-year Treasuries narrowed to -146 basis points in June from -176 basis points in May.

The shape of the yield curve indicates that the probability of recession is increasing. 3 573
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Source: US Department of Labor Source: US Department of Labor Employment
The latest US jobs report showed mixed signals regarding the state of the labor market in May. The U.S. economy added 339,000 jobs in May, following an upward revision of 41,000 to 294,000 jobs for the month of April. The pace of job growth remains healthy with the three-month moving average payrolls at 283,000 and the six-month moving average at 302,000. The unemployment rate increased to 3.7% on a decline in household employment, while the labor force participation rate remained at 62.6% in May. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, increased to 6.7% from the prior month at

6.6%. Average hourly earnings decelerated to 4.3% year-over-year in May, down from a 4.4% increase in March. Job Openings in April edged up to 10.1 million and separations decreased to 5.7 million, indicating continuing demand for labor. While the longer-term trend 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 May by 0.1% month-over-month and 4.0% year-over-year, down from 4.9% in April. The Core CPI, which excludes volatile food and energy components, remained firm at 0.4% month-over-month and 5.3% year-over-year, decelerating modestly from 5.5% in April. The Personal Consumption Expenditures (PCE) index rose 3.8% year-over-year in May, down from a 4.3% gain in April. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 4.6% year-over-year in May, down slightly from a 4.7% increase in April. Core inflation remains stubbornly elevated above the Fed's 2% target, with 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 June meeting, the Federal Open Market Committee paused in their rate hiking campaign after ten straight rate increases and left the target Federal Funds rate in the current range of 5.00 - 5.25%. Market participants viewed the FOMC’s decision as a ‘hawkish’ pause, expecting further tightening in the future, primarily based on the updated release of the FOMC’s Summary of Economic Projections (SEP) forecast. The SEP is forecasting higher GDP, a lower unemployment rate, and higher PCE inflation compared to the March 2023 forecast. The median forecast for the Fed Funds rate was also increased to 5.6% in June, compared to the prior forecast of 5.1% in March, suggesting another 50 basis points of tightening in 2023. We believe the resiliency of future economic data will determine if the Federal Reserve can stay on hold for a period of time or will be forced to tighten policy further to bring inflation back down towards their 2% policy objective.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%
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
Jun-23
Mar-23
Jun-22
Yield (%)
Bond Yields
At the end of June, the 2-year Treasury yield was 194 basis points higher, and the 10-Year Treasury yield was about 82 basis points higher, yearover-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -106 basis points at June month-end versus - 76 basis points at May month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -146 basis points in June from -176 basis points in May. 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 June 30, 2023
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Compliance As of June 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. 10 580
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Compliance As of June 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. 11 581
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Portfolio Summary – City of Cupertino #10659 As of June 30, 2023 12 582
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Purchase Yield as of 06/30/23 = 1.95%

0.00 0.50

1.00 1.50

2.00 2.50
Percent (%)
Historical Average Purchase Yield
City of Cupertino
As of June 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 35.67%
Federal National Mortgage Association Agency 8.82%
Federal Home Loan Mortgage Corp Agency 4.36%
Federal Home Loan Mortgage Corp CMO 3.80%
Inter-American Dev Bank Supranational 3.33%
Federal Home Loan Bank Agency 2.30%
American Express ABS ABS 1.87%
John Deere ABS ABS 1.76%
Hyundai Auto Receivables ABS 1.71%
Royal Bank of Canada Corporate 1.67%
Toyota Motor Corp Corporate 1.60%
Bank of America Corp Corporate 1.55%
JP Morgan Chase & Co Corporate 1.54%
Bank of New York Corporate 1.54%
International Finance Corp Supranational 1.54%
Intl Bank Recon and Development Supranational 1.46%
Toronto Dominion Holdings Corporate 1.42%
Northwestern Mutual Glbl Corporate 1.29%
Paccar Financial Corporate 1.25%
Bank of Montreal Chicago Corporate 1.16%
Amazon.com Inc Corporate 1.13%
Salesforce.com Inc Corporate 1.13%
Metlife Inc Corporate 1.13%
Air Products & Chemicals Corporate 1.11%
Prudential Financial Inc Corporate 1.10%
United Health Group Inc Corporate 1.07%
New York Life Global Funding Corporate 1.07%
GM Financial Automobile Leasing Trust ABS 1.02%
Berkshire Hathaway Corporate 1.02%
Honda ABS ABS 0.95%
Guardian Life Global Funding Corporate 0.84%
US Bancorp Corporate 0.82%
Toyota Lease Owner Trust ABS 0.82%
Caterpillar Inc Corporate 0.71%
GM Financial Securitized Term Auto Trust ABS 0.67%
MasterCard Inc Corporate 0.65%
Toyota ABS ABS 0.63%
Mass Mutual Insurance Corporate 0.60%
Issuers
City of Cupertino – Account #10659
As of June 30, 2023
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Issue Name Investment Type % Portfolio
Charles Schwab Corp/The Corporate 0.58%
Hyundai Auto Lease Securitization ABS 0.52%
State of California Municipal Bonds 0.49%
Northern Trust Corp Corporate 0.44%
Morgan Stanley Corporate 0.41%
Verizon Master Trust ABS 0.38%
BMW Vehicle Lease Trust ABS 0.37%
BMW ABS ABS 0.35%
Wal-Mart Stores Corporate 0.21%
Wells Fargo 100% Treasury MMKT Fund Money Market Fund 0.13% Verizon Owner Trust ABS 0.07%
TOTAL 100.00%
Issuers
City of Cupertino – Account #10659
As of June 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
91,167.99 03/23/2022

2.16%
89,344.63
90,896.50

99.69 6.22%
90,883.09

10.86 0.06%
(13.41)
Aaa / AAA
NR

0.81 0.05
44891VAC5 Hyundai Auto Lease Trust 2021-B A3

0.330% Due 06/17/2024
239,581.62 06/08/2021

0.34%
239,545.68
239,578.29

99.45 6.07%
238,259.37

35.14 0.16%
(1,318.92)
Aaa / AAA
NR

0.97 0.10
43813DAC2 Honda Auto Receivables 2020-2 A3

0.820% Due 07/15/2024
15,563.04 05/18/2020

0.83%
15,561.82
15,562.73

99.49 5.66%
15,484.40

5.67 0.01%
(78.33)
Aaa / AAA
NR

1.04 0.10
47789KAC7 John Deere Owner Trust 2020-A A3

1.100% Due 08/15/2024
1,999.85 03/04/2020

1.11%
1,999.73
1,999.82

99.83 7.52%
1,996.36

0.98 0.00%
(3.46)
Aaa / NR
AAA

1.13 0.03
43813KAC6 Honda Auto Receivables Trust 2020-3 A3

0.370% Due 10/18/2024
132,905.15 09/22/2020

0.38%
132,885.62
132,902.76

98.61 5.95%
131,063.75

17.76 0.09%
(1,839.01)

NR / AAA
AAA

1.30 0.25
36262XAC8 GM Financial Auto Lease Trust 2021-3 A2

0.390% Due 10/21/2024
605,741.63 08/10/2021

0.39%
605,733.40
605,739.74

98.59 5.86%
597,221.27

72.18 0.40%
(8,518.47)

NR / AAA
AAA

1.31 0.25
47787NAC3 John Deere Owner Trust 2020-B A3

0.510% Due 11/15/2024
24,012.85 07/14/2020

0.52%
24,009.19
24,012.28

99.28 5.17%
23,840.32

5.44 0.02%
(171.96)
Aaa / NR
AAA

1.38 0.15
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3

0.330% Due 12/26/2024
190,761.46 09/08/2021

0.34%
190,741.76
190,757.26

98.70 6.39%
188,290.72

10.49 0.13%
(2,466.54)
Aaa / NR
AAA

1.49 0.21
89236XAC0 Toyota Auto Receivables 2020-D A3

0.350% Due 01/15/2025
91,064.31 10/06/2020

0.36%
91,047.34
91,058.15

98.94 6.01%
90,097.39

14.17 0.06%
(960.76)

NR / AAA
AAA

1.55 0.19
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
539,995.78

98.22 5.87%
530,395.56
278.40

0.36%
(9,600.22)
Aaa / AAA
NR

1.55 0.38
92290BAA9 Verizon Owner Trust 2020-B A

0.470% Due 02/20/2025
110,213.94 08/04/2020

0.48%
110,190.79
110,205.54

99.30 5.63%
109,445.09

15.83 0.07%
(760.45)
Aaa / NR
AAA

1.65 0.13
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
1,149,923.77

97.81 5.92%
1,124,764.40
688.72

0.75%
(25,159.37)

NR / AAA
AAA

1.65 0.56
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
944,996.96

98.05 5.87%
926,603.69
548.63

0.62%
(18,393.27)
Aaa / NR
AAA

1.72 0.49
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3

1.100% Due 03/25/2025
367,689.92 01/11/2022

1.11%
367,634.96
367,671.42

98.29 5.84%
361,402.42

67.41 0.24%
(6,269.00)

NR / AAA
AAA

1.74 0.36
43813GAC5 Honda Auto Receivables Trust 2021-1 A3

0.270% Due 04/21/2025
119,274.80 02/17/2021

0.27%
119,272.63
119,274.29

97.65 6.18%
116,475.07

8.95 0.08%
(2,799.22)
Aaa / NR
AAA

1.81 0.39
89240BAC2 Toyota Auto Receivables Owners 2021-A A3

0.260% Due 05/15/2025
439,862.73 02/02/2021

0.27%
439,781.10
439,844.11

97.82 5.87%
430,262.29

50.83 0.29%
(9,581.82)
Aaa / NR
AAA

1.88 0.39
44933LAC7 Hyundai Auto Receivables Trust 2021-A A3

0.380% Due 09/15/2025
304,823.89 04/20/2021

0.38%
304,791.82
304,814.70

97.38 6.00%
296,830.19

51.48 0.20%
(7,984.51)

NR / AAA
AAA

2.21 0.46
As of June 30, 2023
17 587
CC 09-06-2023
587 of 674
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
459,950.82

95.98 5.92%
441,499.26
112.44

0.30%
(18,451.56)
Aaa / NR
AAA

2.56 0.80
47789QAC4 John Deere Owner Trust 2021-B A3

0.520% Due 03/16/2026
501,919.07 07/13/2021

0.52%
501,874.29
501,898.14

95.80 6.12%
480,831.94
116.00

0.32%
(21,066.20)
Aaa / NR
AAA

2.71 0.75
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
429,995.41

95.77 6.14%
411,795.09
135.69

0.28%
(18,200.32)

NR / AAA
AAA

2.79 0.78
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
739,935.32

95.55 5.87%
707,074.44
618.31

0.47%
(32,860.88)
Aaa / AAA
NR

2.88 1.13
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
1,311,590.39

96.07 5.87%
1,277,697.76
437.42

0.86%
(33,892.63)

NR / AAA
AAA

2.88 0.77
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
529,982.38

97.22 5.76%
515,273.95
283.55

0.35%
(14,708.43)
Aaa / AAA
NR

3.16 1.10
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
349,995.52

95.50 6.14%
334,267.15

99.17 0.22%
(15,728.37)
Aaa / AAA
NR

3.22 0.82
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
449,937.19

96.32 5.88%
433,454.85
464.00

0.29%
(16,482.34)
Aaa / NR
AAA

3.22 1.04
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
1,009,976.58

95.98 5.78%
969,371.74
996.53

0.65%
(40,604.84)

NR / AAA
AAA

3.30 1.14
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
294,985.52

95.52 5.90%
281,786.66
154.88

0.19%
(13,198.86)

NR / AAA
AAA

3.38 0.97
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
389,947.40

96.77 5.72%
377,383.89
503.75

0.25%
(12,563.51)
Aaa / AAA
NR

3.64 1.25
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
654,954.02

97.15 5.73%
636,361.32
1,088.76

0.43%
(18,592.70)
Aaa / NR
AAA

3.64 1.46
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
1,533,181.19

94.73 5.53%
1,463,637.21
1,517.53

0.98%
(69,543.98)
Aaa / NR
AAA

3.71 1.62
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
1,374,808.61

96.51 5.43%
1,326,956.13
2,071.67

0.89%
(47,852.48)

NR / AAA
AAA

3.88 1.75
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
1,049,934.08

99.21 5.61%
1,041,673.50
2,375.33

0.70%
(8,260.58)
Aaa / NR
AAA

3.96 1.69
92348KAV5 Verizon Master Trust 2022-5 A1A

3.720% Due 07/20/2027
570,000.00 08/02/2022

3.75%
569,974.92
569,982.94

98.78 5.25%
563,053.98
647.90

0.38%
(6,928.96)

NR / AAA
AAA

4.06 1.09
TOTAL ABS 17,051,582.25 2.17%
16,993,972.37
17,020,289.61 5.79%
16,535,434.25
13,505.87

11.09%
(484,855.36)
Aaa / AAA
AAA

2.82 0.97
As of June 30, 2023
18 588
CC 09-06-2023
588 of 674
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
854,879.41

97.84 5.41%
836,534.57
160.31

0.56%
(18,344.84)
Aaa / AA+
AAA

0.43 0.42
3130A1XJ2 FHLB Note

2.875% Due 06/14/2024
1,500,000.00 06/18/2019

1.96%
1,564,890.20
1,512,429.57

97.57 5.52%
1,463,544.00
2,036.46

0.98%
(48,885.57)
Aaa / AA+
NR

0.96 0.92
3135G0V75 FNMA Note

1.750% Due 07/02/2024
1,500,000.00 07/16/2019

1.96%
1,484,895.00
1,496,940.65

96.43 5.44%
1,446,480.00
13,052.08

0.98%
(50,460.65)
Aaa / AA+
AAA

1.01 0.97
3130A2UW4 FHLB Note

2.875% Due 09/13/2024
2,000,000.00 09/13/2019

1.79%
2,103,380.00
2,024,938.16

97.17 5.33%
1,943,320.00
17,250.00

1.31%
(81,618.16)
Aaa / AA+
AAA

1.21 1.15
3135G0W66 FNMA Note

1.625% Due 10/15/2024
1,975,000.00 Various

1.73%
1,965,802.75
1,972,555.49

95.41 5.35%
1,884,375.15
6,775.35

1.27%
(88,180.34)
Aaa / AA+
AAA

1.30 1.25
3135G0X24 FNMA Note

1.625% Due 01/07/2025
1,295,000.00 Various

1.38%
1,309,953.95
1,299,727.20

94.82 5.22%
1,227,873.68
10,171.14

0.83%
(71,853.52)
Aaa / AA+
AAA

1.53 1.46
3137EAEP0 FHLMC Note

1.500% Due 02/12/2025
2,365,000.00 02/13/2020

1.52%
2,363,178.95
2,364,409.28

94.40 5.16%
2,232,498.51
13,697.29

1.51%
(131,910.77)
Aaa / AA+
AAA

1.62 1.55
3135G03U5 FNMA Note

0.625% Due 04/22/2025
1,860,000.00 04/22/2020

0.67%
1,856,168.40
1,858,611.47

92.48 5.02%
1,720,157.76
2,228.13

1.15%
(138,453.71)
Aaa / AA+
AAA

1.81 1.76
3135G04Z3 FNMA Note

0.500% Due 06/17/2025
2,500,000.00 Various

0.50%
2,499,227.30
2,499,779.25

91.81 4.93%
2,295,207.50
486.11

1.54%
(204,571.75)
Aaa / AA+
AAA

1.97 1.91
3137EAEU9 FHLMC Note

0.375% Due 07/21/2025
1,250,000.00 07/21/2020

0.48%
1,243,775.00
1,247,436.97

91.24 4.90%
1,140,486.25
2,083.33

0.77%
(106,950.72)
Aaa / AA+
AAA

2.06 2.00
3135G05X7 FNMA Note

0.375% Due 08/25/2025
2,500,000.00 Various

0.48%
2,487,983.75
2,494,672.71

90.99 4.83%
2,274,872.51
3,281.25

1.53%
(219,800.20)
Aaa / AA+
AAA

2.16 2.09
3137EAEX3 FHLMC Note

0.375% Due 09/23/2025
2,500,000.00 Various

0.46%
2,489,362.80
2,495,147.64

90.74 4.80%
2,268,417.50
2,552.08

1.52%
(226,730.14)
Aaa / AA+
AAA

2.24 2.17
3135G06G3 FNMA Note

0.500% Due 11/07/2025
2,500,000.00 Various

0.56%
2,492,700.00
2,496,551.45

90.63 4.76%
2,265,792.50
1,875.00

1.52%
(230,758.95)
Aaa / AA+
AAA

2.36 2.29
TOTAL Agency 24,600,000.00 1.03%
24,715,471.65
24,618,079.25 5.09%
22,999,559.93
75,648.53

15.47%
(1,618,519.32)
Aaa / AA+
AAA

1.69 1.63
CMO
3137BFE98 FHLMC K041 A2

3.171% Due 10/25/2024
1,300,000.00 07/01/2021

0.72%
1,398,414.06
1,338,133.37

97.07 5.56%
1,261,926.90
3,435.25

0.85%
(76,206.47)
Aaa / AAA
AAA

1.32 1.16
3137BLMZ8 FHLMC K049 A2

3.010% Due 07/25/2025
1,000,000.00 07/01/2021

0.87%
1,079,687.50
1,040,035.44

95.78 5.26%
957,834.00
2,508.33

0.64%
(82,201.44)

NR / NR
AAA

2.07 1.83
As of June 30, 2023
19 589
CC 09-06-2023
589 of 674
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
988,428.72

96.28 5.24%
914,660.00
2,639.42

0.61%
(73,768.72)

NR / NR
AAA

2.16 1.88
3137BM7C4 FHLMC K051 A2

3.308% Due 09/25/2025
440,000.00 03/15/2022

2.22%
453,079.69
448,212.35

96.15 5.21%
423,060.88
242.59

0.28%
(25,151.47)

NR / NR
AAA

2.24 1.96
3137BN6G4 FHLMC KO53

2.995% Due 12/25/2025
570,000.00 03/15/2022

2.29%
582,001.17
577,907.88

95.27 5.13%
543,042.42
1,422.63

0.37%
(34,865.46)

NR / NR
AAA

2.49 2.18
3137BSP72 FHLMC K058 A2

2.653% Due 08/25/2026
650,000.00 11/12/2021

1.35%
687,451.17
674,567.79

93.62 4.87%
608,522.20
1,437.04

0.41%
(66,045.59)

NR / NR
AAA

3.16 2.90
3137FBBX3 FHLMC K068 A2

3.244% Due 08/25/2027
1,000,000.00 09/28/2022

4.41%
950,664.06
958,247.75

94.54 4.71%
945,408.00
2,703.33

0.64%
(12,839.75)
Aaa / NR
NR

4.16 3.72
TOTAL CMO 5,910,000.00 1.74%
6,169,430.46
6,025,533.30 5.17%
5,654,454.40
14,388.59

3.80%
(371,078.90)
Aaa / AAA
AAA

2.44 2.16
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
1,505,454.14

96.98 5.97%
1,454,667.00
2,097.92

0.98%
(50,787.14)
A1 / A
AA0.950.92
06367TQW3 Bank of Montreal Note

0.625% Due 07/09/2024
600,000.00 02/09/2022

1.89%
582,216.00
592,433.20

94.98 5.74%
569,871.00
1,791.67

0.38%
(22,562.20)
A2 / AAA1.03

0.99 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
1,755,609.59

95.19 5.44%
1,675,340.48
5,072.23

1.13%
(80,269.11)
A2 / A+
NR

1.04 1.01
78013XZU5 Royal Bank of Canada Note

2.550% Due 07/16/2024
1,500,000.00 Various

1.99%
1,533,359.18
1,508,458.20

96.92 5.62%
1,453,839.00
17,531.26

0.99%
(54,619.20)
A1 / A
AA1.051.00
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
1,253,858.72

96.46 5.82%
1,205,688.75
12,583.33

0.82%
(48,169.97)
A3 / A
A

1.08 1.03
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
1,691,945.80

97.42 5.84%
1,631,707.95
23,536.08

1.11%
(60,237.85)
A2 / A
NR

1.09 1.03
69371RR40 Paccar Financial Corp Note

0.500% Due 08/09/2024
680,000.00 08/03/2021

0.52%
679,632.80
679,864.31

94.67 5.52%
643,745.80
1,341.11

0.43%
(36,118.51)
A1 / A+
NR

1.11 1.07
69371RQ25 Paccar Financial Corp Note

2.150% Due 08/15/2024
370,000.00 08/08/2019

2.20%
369,182.30
369,816.05

96.26 5.62%
356,163.48
3,005.22

0.24%
(13,652.57)
A1 / A+
NR

1.13 1.08
14913Q3B3 Caterpillar Finl Service Note

2.150% Due 11/08/2024
1,100,000.00 01/28/2020

1.92%
1,111,517.00
1,103,275.48

95.82 5.38%
1,054,061.80
3,481.81

0.71%
(49,213.68)
A2 / A
A+

1.36 1.30
74153WCQ0 Pricoa Global Funding Note

1.150% Due 12/06/2024
885,000.00 12/01/2021

1.19%
884,088.45
884,563.39

93.57 5.89%
828,122.82
706.77

0.56%
(56,440.57)
Aa3 / AAAA1.44

1.38 As of June 30, 2023
20 590
CC 09-06-2023
590 of 674
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
686,289.30

94.13 5.51%
658,921.90
4,821.25

0.44%
(27,367.40)
A1 / A
NR

1.53 1.46
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
1,214,165.15

94.32 5.35%
1,146,014.73
8,221.50

0.77%
(68,150.42)
A1 / A+
A+

1.54 1.47
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
1,679,067.97

93.96 5.60%
1,578,559.92
11,300.33

1.07%
(100,508.05)
Aaa / AA+
AAA

1.55 1.48
69371RR73 Paccar Financial Corp Note

2.850% Due 04/07/2025
885,000.00 03/31/2022

2.86%
884,769.90
884,864.38

95.71 5.42%
847,036.16
5,885.25

0.57%
(37,828.22)
A1 / A+
NR

1.77 1.68
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
1,049,768.53

96.27 5.59%
1,010,808.75
7,579.69

0.68%
(38,959.78)
A1 / A
AA1.791.69
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
1,369,883.69

96.16 5.60%
1,317,345.42
8,414.08

0.89%
(52,538.27)
A1 / A
AA1.821.72
06367WB85 Bank of Montreal Note

1.850% Due 05/01/2025
1,240,000.00 07/23/2021

0.85%
1,285,656.80
1,262,263.51

93.42 5.67%
1,158,357.16
3,823.33

0.78%
(103,906.35)
A2 / AAA1.84

1.76 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
1,370,543.83

95.06 6.07%
1,302,372.70
940.73

0.87%
(68,171.13)
A1 / AAA1.92

1.83 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
655,133.02

94.92 6.08%
621,735.83
141.05

0.42%
(33,397.19)
A1 / AAA1.98

1.89 66815L2J7 Northwestern Mutual Glbl Note

4.000% Due 07/01/2025
1,170,000.00 06/27/2022

4.01%
1,169,602.20
1,169,734.68

96.85 5.69%
1,133,145.00
23,400.00

0.78%
(36,589.68)
Aaa / AA+
AAA

2.01 1.85
74153WCM9 Pricoa Global Funding Note

0.800% Due 09/01/2025
904,000.00 04/06/2022

3.26%
832,972.72
858,650.05

89.92 5.81%
812,833.41
2,410.67

0.55%
(45,816.64)
Aa3 / AAAA2.18

2.09 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
1,016,220.47

96.39 5.59%
963,887.00
4,718.06

0.65%
(52,333.47)
A1 / A
AA2.392.22
40139LBC6 Guardian Life Glob Fun Note

0.875% Due 12/10/2025
1,400,000.00 Various

1.12%
1,385,860.00
1,391,732.29

89.00 5.76%
1,246,018.20
714.58

0.84%
(145,714.09)
Aa1 / AA+
NR

2.45 2.35
66815L2A6 Northwestern Mutual Glbl Note

0.800% Due 01/14/2026
850,000.00 12/06/2021

1.47%
827,449.50
836,030.13

89.12 5.45%
757,516.60
3,154.44

0.51%
(78,513.53)
Aaa / AA+
AAA

2.55 2.44
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
609,158.12

93.65 6.20%
561,882.00
4,634.50

0.38%
(47,276.12)
A1 / AAA2.63

1.54 As of June 30, 2023
21 591
CC 09-06-2023
591 of 674
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
407,924.23

93.65 5.83%
375,537.30
1,600.96

0.25%
(32,386.93)
A1 / AAA2.81

1.73 6174468Q5 Morgan Stanley Callable Note Cont 4/28/2025

2.188% Due 04/28/2026
650,000.00 05/23/2022

4.87%
615,699.50
625,315.12

93.87 5.77%
610,160.20
2,488.85

0.41%
(15,154.92)
A1 / AA+2.83

1.74 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
1,870,360.02

89.90 4.81%
1,685,675.63
2,552.08

1.13%
(184,684.39)
A1 / AA
AA2.872.76
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
1,028,508.73

90.43 4.75%
935,955.68
1,520.88

0.63%
(92,553.05)
A3 / A+
A

2.88 2.76
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
1,384,638.57

89.41 5.01%
1,238,357.59
562.66

0.83%
(146,280.98)
A1 / A+
A+

2.97 2.85
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
700,640.56

91.60 5.90%
641,213.30
307.77

0.43%
(59,427.26)
A1 / AAA2.97

1.89 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
1,001,385.64

88.39 5.38%
883,944.00
5,500.00

0.60%
(117,441.64)
Aa3 / AA+
AA+

3.05 2.90
58989V2D5 Met Tower Global Funding Note

1.250% Due 09/14/2026
770,000.00 09/07/2021

1.27%
769,291.60
769,545.71

87.49 5.57%
673,647.59
2,860.76

0.45%
(95,898.12)
Aa3 / AAAA3.21

3.05 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
349,574.70

89.28 4.68%
312,489.80
1,061.67

0.21%
(37,084.90)
Aa2 / AA
AA

3.22 3.08
59217GER6 Metlife Note

1.875% Due 01/11/2027
1,115,000.00 01/03/2022

1.90%
1,113,728.90
1,114,102.02

89.09 5.30%
993,324.51
9,872.40

0.67%
(120,777.51)
Aa3 / AAAA3.54

3.30 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
959,800.30

89.58 5.63%
859,940.16
7,709.34

0.58%
(99,860.14)
A2 / AA3.68

3.40 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
1,614,772.64

93.51 4.21%
1,510,186.50
10,937.14

1.02%
(104,586.14)
Aa2 / AA
A+

3.71 3.47
06051GHT9 Bank of America Corp Callable Note 1X 4/23/2026

3.559% Due 04/23/2027
1,150,000.00 Various

4.92%
1,114,222.54
1,121,048.29

94.81 5.58%
1,090,282.80
7,730.94

0.74%
(30,765.49)
A1 / AAA3.82

2.61 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
669,162.47

96.34 5.05%
645,459.91
3,796.67

0.44%
(23,702.56)
A2 / A+
A+

3.86 3.50
As of June 30, 2023
22 592
CC 09-06-2023
592 of 674
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
675,245.91

96.40 4.73%
650,689.88
3,191.25

0.44%
(24,556.03)
A3 / A+
A

3.88 3.54
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
944,140.55
101.13

4.60%
955,687.95
14,332.50

0.65%
11,547.40
Aa3 / A+
NR

4.70 4.03
TOTAL Corporate 42,705,000.00 2.08%
42,741,600.72
42,634,949.46 5.47%
40,052,195.66
237,332.73

27.01%
(2,582,753.80)
A1 / A+
AA2.232.03
Money Market Fund
94975H270 Wells Fargo 100% Treasury Money Mkt Fund

197,058.62 Various

4.69%
197,058.62
197,058.62

1.00 4.69%
197,058.62

0.00 0.13%

0.00 Aaa / AAA
NR

0.00 0.00
TOTAL Money Market Fund 197,058.62 4.69%
197,058.62
197,058.62 4.69%
197,058.62

0.00 0.13%

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
759,402.88

96.17 5.60%
726,120.50
4,530.00

0.49%
(33,282.38)
Aa2 / AAAA1.26

1.20 TOTAL Municipal Bonds 755,000.00 1.91%
772,342.35
759,402.88 5.60%
726,120.50
4,530.00

0.49%
(33,282.38)
Aa2 / AAAA1.26

1.20 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
2,798,776.22

98.13 5.32%
2,747,746.40
894.44

1.84%
(51,029.82)
Aaa / AAA
NR

0.38 0.37
45950KCT5 International Finance Corp Note

0.375% Due 07/16/2025
2,500,000.00 05/27/2021

0.66%
2,471,150.00
2,485,709.10

91.44 4.82%
2,286,050.00
4,296.88

1.54%
(199,659.10)
Aaa / AAA
NR

2.05 1.99
459058JL8 Intl. Bank Recon & Development Note

0.500% Due 10/28/2025
2,400,000.00 Various

0.60%
2,388,859.25
2,394,484.23

90.76 4.74%
2,178,333.61
2,100.01

1.46%
(216,150.62)
Aaa / AAA
AAA

2.33 2.26
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
2,453,681.71

90.21 4.64%
2,219,195.52
4,245.21

1.49%
(234,486.19)
Aaa / AAA
AAA

2.81 2.71
TOTAL Supranational 10,160,000.00 0.64%
10,101,042.45
10,132,651.26 4.90%
9,431,325.53
11,536.54

6.33%
(701,325.73)
Aaa / AAA
AAA

1.81 1.75
US Treasury
912796YT0 US Treasury Bill

4.888% Due 11/02/2023
1,500,000.00 05/08/2023

5.08%
1,463,954.69
1,474,747.92

98.32 5.08%
1,474,747.92

0.00 0.99%

0.00 P-1 / A-1+
F-1+

0.34 0.33
As of June 30, 2023
23 593
CC 09-06-2023
593 of 674
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
912796ZN2 US Treasury Bill

5.228% Due 12/28/2023
1,500,000.00 06/28/2023

5.44%
1,460,358.13
1,460,793.75

97.39 5.44%
1,460,793.75

0.00 0.98%

0.00 P-1 / A-1+
F-1+

0.50 0.48
912828X70 US Treasury Note

2.000% Due 04/30/2024
1,700,000.00 06/10/2019

1.92%
1,705,976.56
1,701,017.86

97.22 5.45%
1,652,785.90
5,728.26

1.11%
(48,231.96)
Aaa / AA+
AAA

0.84 0.81
912828XX3 US Treasury Note

2.000% Due 06/30/2024
2,000,000.00 Various

1.80%
2,018,574.22
2,003,840.14

96.70 5.43%
1,934,062.00
108.69

1.30%
(69,778.14)
Aaa / AA+
AAA

1.00 0.97
912828D56 US Treasury Note

2.375% Due 08/15/2024
1,700,000.00 09/18/2019

1.71%
1,753,191.41
1,712,199.59

96.77 5.36%
1,645,081.50
15,168.51

1.11%
(67,118.09)
Aaa / AA+
AAA

1.13 1.08
912828YY0 US Treasury Note

1.750% Due 12/31/2024
2,100,000.00 03/15/2022

1.97%
2,087,203.13
2,093,119.02

95.07 5.21%
1,996,476.30

99.86 1.34%
(96,642.72)
Aaa / AA+
AAA

1.51 1.45
912828ZC7 US Treasury Note

1.125% Due 02/28/2025
1,500,000.00 03/18/2020

0.81%
1,523,144.53
1,507,787.42

93.73 5.09%
1,405,957.50
5,640.29

0.95%
(101,829.92)
Aaa / AA+
AAA

1.67 1.61
91282CED9 US Treasury Note

1.750% Due 03/15/2025
3,100,000.00 Various

2.23%
3,057,617.20
3,075,508.97

94.59 5.09%
2,932,407.80
15,921.20

1.98%
(143,101.17)
Aaa / AA+
AAA

1.71 1.64
912828ZL7 US Treasury Note

0.375% Due 04/30/2025
2,500,000.00 03/21/2022

2.24%
2,360,839.85
2,417,975.21

92.01 4.99%
2,300,195.00
1,579.48

1.54%
(117,780.21)
Aaa / AA+
AAA

1.84 1.78
91282CAB7 US Treasury Note

0.250% Due 07/31/2025
1,500,000.00 03/12/2021

0.72%
1,469,765.63
1,485,610.78

91.00 4.84%
1,364,941.50
1,564.23

0.92%
(120,669.28)
Aaa / AA+
AAA

2.09 2.03
91282CAM3 US Treasury Note

0.250% Due 09/30/2025
2,400,000.00 Various

0.56%
2,366,140.63
2,383,342.50

90.57 4.71%
2,173,780.80
1,508.20

1.46%
(209,561.70)
Aaa / AA+
AAA

2.25 2.19
91282CAT8 US Treasury Note

0.250% Due 10/31/2025
2,450,000.00 Various

0.49%
2,422,492.19
2,436,550.27

90.25 4.71%
2,211,125.00
1,031.93

1.48%
(225,425.27)
Aaa / AA+
AAA

2.34 2.27
91282CAZ4 US Treasury Note

0.375% Due 11/30/2025
2,250,000.00 03/26/2021

0.77%
2,209,658.20
2,229,131.92

90.27 4.68%
2,030,976.00
714.65

1.36%
(198,155.92)
Aaa / AA+
AAA

2.42 2.35
91282CBH3 US Treasury Note

0.375% Due 01/31/2026
2,500,000.00 05/27/2021

0.75%
2,456,445.31
2,475,916.22

89.78 4.61%
2,244,532.50
3,910.57

1.51%
(231,383.72)
Aaa / AA+
AAA

2.59 2.51
91282CBW0 US Treasury Note

0.750% Due 04/30/2026
2,500,000.00 05/27/2021

0.80%
2,493,652.34
2,496,349.57

90.05 4.53%
2,251,172.50
3,158.97

1.51%
(245,177.07)
Aaa / AA+
AAA

2.84 2.74
91282CCZ2 US Treasury Note

0.875% Due 09/30/2026
1,400,000.00 10/18/2021

1.19%
1,379,054.68
1,386,241.23

89.47 4.39%
1,252,563.20
3,079.23

0.84%
(133,678.03)
Aaa / AA+
AAA

3.25 3.13
91282CDG3 US Treasury Note

1.125% Due 10/31/2026
1,400,000.00 11/15/2021

1.25%
1,391,468.75
1,394,255.91

89.92 4.41%
1,258,906.60
2,653.53

0.85%
(135,349.31)
Aaa / AA+
AAA

3.34 3.20
91282CEW7 US Treasury Note

3.250% Due 06/30/2027
3,250,000.00 Various

3.18%
3,260,312.50
3,258,035.26

96.17 4.30%
3,125,586.75
287.02

2.10%
(132,448.51)
Aaa / AA+
AAA

4.00 3.70
91282CFB2 US Treasury Note

2.750% Due 07/31/2027
400,000.00 08/22/2022

3.12%
393,218.75
394,392.21

94.28 4.29%
377,109.20
4,588.40

0.26%
(17,283.01)
Aaa / AA+
AAA

4.09 3.76
As of June 30, 2023
24 594
CC 09-06-2023
594 of 674
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
91282CFH9 US Treasury Note

3.125% Due 08/31/2027
4,500,000.00 Various

3.28%
4,468,902.34
4,473,941.67

95.64 4.28%
4,303,651.50
47,002.38

2.92%
(170,290.17)
Aaa / AA+
AAA

4.17 3.81
91282CFM8 US Treasury Note

4.125% Due 09/30/2027
3,450,000.00 Various

4.31%
3,421,152.34
3,425,081.68

99.44 4.27%
3,430,728.30
35,772.54

2.32%
5,646.62
Aaa / AA+
AAA

4.25 3.82
91282CFZ9 US Treasury Note

3.875% Due 11/30/2027
850,000.00 12/05/2022

3.81%
852,656.25
852,354.14

98.58 4.23%
837,947.00
2,789.79

0.56%
(14,407.14)
Aaa / AA+
AAA

4.42 4.00
91282CGC9 US Treasury Note

3.875% Due 12/31/2027
2,750,000.00 Various

3.67%
2,775,107.42
2,772,957.03

98.60 4.22%
2,711,436.75
289.57

1.82%
(61,520.28)
Aaa / AA+
AAA

4.51 4.08
91282CGH8 US Treasury Note

3.500% Due 01/31/2028
3,000,000.00 02/07/2023

3.81%
2,957,929.69
2,961,238.85

97.11 4.20%
2,913,165.00
43,798.34

1.98%
(48,073.85)
Aaa / AA+
AAA

4.59 4.12
91282CGP0 US Treasury Note

4.000% Due 02/29/2028
3,700,000.00 Various

4.00%
3,699,113.28
3,699,296.71

99.26 4.17%
3,672,682.90
49,467.39

2.50%
(26,613.81)
Aaa / AA+
AAA

4.67 4.16
TOTAL US Treasury 55,900,000.00 2.45%
55,447,930.02
55,571,685.83 4.66%
52,962,813.17
245,863.03

35.67%
(2,608,872.66)
Aaa / AA+
AAA

2.88 2.68
TOTAL PORTFOLIO 157,278,640.87 1.95%
157,138,848.64
156,959,650.21 5.11%
148,558,962.06
602,805.29
100.00%
(8,400,688.15)
Aa1 / AA
AAA

2.42 2.06
TOTAL MARKET VALUE PLUS ACCRUALS 149,161,767.35
As of June 30, 2023
25 595
CC 09-06-2023
595 of 674
SECTION | Section 4 | Transactions
26 596
CC 09-06-2023
596 of 674
Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 05/09/2023 912796YT0 1,500,000.00 US Treasury Bill

4.888% Due: 11/02/2023

97.597 5.08% 1,463,954.69 0.00 1,463,954.69 0.00
Purchase 06/29/2023 912796ZN2 1,500,000.00 US Treasury Bill

5.228% Due: 12/28/2023

97.357 5.44% 1,460,358.13 0.00 1,460,358.13 0.00
Subtotal 3,000,000.00 2,924,312.82 0.00 2,924,312.82 0.00 TOTAL ACQUISITIONS 3,000,000.00 2,924,312.82 0.00 2,924,312.82 0.00 March 31, 2023 through June 30, 2023
As of June 30, 2023
27 597
CC 09-06-2023
597 of 674
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 June 30, 2023
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Benchmark Disclosures
ICE BofA 1-3 Yr US Treasury & Agency Index
The ICE BofA 1-3 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 three 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 June 30, 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

ACCOUNT NUMBER

MONTHLY STATEMENT
JUNE 1, 2023 THROUGH JUNE 30, 2023
ACCOUNT MANAGER: MICHAEL J WADE
TELEPHONE NUMBER: 515-878-6110
PFGEDD INVESTMENT CONTACT: IMR/DOE SLANGER
TELEPHONE NUMBER:

ADMINISTRATOR: BELINDA CONWAY
TELEPHONE NUMBER: 254-265-6137
18223 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 & Trust Company. Principal Bank 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 JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯ PAGE

REPORT NAME NUMBER
ASSET SUMMARY .................................................................................. 1 STATEMENT OF ASSETS AND LIABILITIES ............................................................ 2 CASH SUMMARY ................................................................................... 20 STATEMENT OF TRANSACTIONS ...................................................................... 21 602
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PAGE 1

ASSET SUMMARY CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

ASSET SUMMARY
% TOTAL UNREALIZED ESTIMATED CURRENT ACCRUED

INVESTMENT CATEGORY COST VALUE MARKET VALUE MARKET GAIN/LOSS ANNUAL INCOME YIELD INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ CASH 20,000.00 20,000.00 0.01
CASH EQUIVALENTS 3,101,371.44 3,111,778.62 2.09 10,407.18 161,175 5.18 3,785.19 BONDS AND NOTES 154,017,477.20 145,426,456.81 97.89 8,591,020.39- 2,845,924 1.96 603,833.31 TOTAL INVESTMENTS 157,138,848.64 148,558,235.43 100.00 8,580,613.21- 3,007,099 2.02 607,618.50 TOTAL ACCRUALS 607,618.50 607,618.50
===================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 157,746,467.14 149,165,853.93 8,580,613.21- 3,007,099 2.02 607,618.50 603
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PAGE 2

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ INCOME CASH 20,000.00 20,000.00 0.01

CASH EQUIVALENTS
127,399.02 ALLSPRING 100% TREASURY 127,399.02 127,399.02 0.09 0.00 3,675.02 MONEY MARKET FUND - #008 1.0000 1.0000
49,659.6 PRINCIPAL PUBLIC DEPOSIT SWEEP 49,659.60 49,659.60 0.03 0.00 110.17 PROGRAM 1.0000 1.0000
1,500,000 UNITED STATES TREASURY BILLS 1,463,954.69 1,473,555.00 0.99 9,600.31 0.00 DTD 11/03/2022 DUE 11/02/2023 97.5970 98.2370
CUSIP 912796YT0
1,500,000 UNITED STATES TREASURY BILLS 1,460,358.13 1,461,165.00 0.98 806.87 0.00 DTD 12/29/2022 DUE 12/28/2023 97.3572 97.4110
CUSIP 912796ZN2
TOTAL CASH EQUIVALENTS 3,101,371.44 3,111,778.62 2.09 10,407.18 3,785.19

BOND & NOTES
1,675,000 AIR PRODUCTS & CHEMICALS 1,771,212.00 1,631,701.25 1.10 139,510.75- 23,536.08 DTD 07/31/14 3.350 07/31/2024 105.7440 97.4150
MOODY'S RATING A2
CUSIP 009158AV8
1,875,000 AMAZON.COM INC 1,866,900.00 1,685,681.25 1.13 181,218.75- 2,552.08 DTD 05/12/21 1.000 05/12/2026 99.5680 89.9030
MOODY'S RATING A1
CUSIP 023135BX3
1,375,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,374,695.85 1,326,957.50 0.89 47,738.35- 2,071.67 ASSET BCKD SEC SER 2022-2 CL A 99.9779 96.5060
DTD 05/24/2022 3.390% 05/17/2027

NON CALLABLE
CUSIP 02582JJT8
604
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PAGE 3

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,545,000 AMERICAN EXPRESS CREDIT ACCOUNT 1,524,359.77 1,463,640.30 0.99 60,719.47- 1,517.53 ASSET BCKD SEC SER 2022-1 CL A 98.6641 94.7340
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 1,090,280.50 0.73 23,942.04- 7,730.94 MED TERM NOTE 96.8889 94.8070
DTD 04/23/19 04/23/2027
MOODY'S RATING A1
CUSIP 06051GHT9
600,000 BANK OF AMERICA CORP 620,988.00 561,882.00 0.38 59,106.00- 4,634.50 MED TERM NOTE 103.4980 93.6470
DTD 02/13/20 02/13/2026
MOODY'S RATING A1
CUSIP 06051GHY8
700,000 BANK OF AMERICA CORP 701,274.00 641,214.00 0.43 60,060.00- 307.77 MED TERM NOTE 100.1820 91.6020
DTD 06/19/20 06/19/2026
MOODY'S RATING A1
CUSIP 06051GJD2
600,000 BANK OF MONTREAL 582,216.00 569,874.00 0.38 12,342.00- 1,791.67 MED TERM NOTE 97.0360 94.9790
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 1,158,358.40 0.78 127,298.40- 3,823.33 MED TERM NOTE 103.6820 93.4160
DTD 04/27/20 1.850 05/01/2025
MOODY'S RATING A2
CUSIP 06367WB85
605
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,000,000 BANK OF NEW YORK MELLON 1,024,910.00 963,890.00 0.65 61,020.00- 4,718.06 MED TERM NOTE 102.4910 96.3890
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 1,317,350.90 0.89 52,457.30- 8,414.08 DTD 04/26/2022 3.350% 04/25/2025 99.9860 96.1570

CALLABLE
MOODY'S RATING A1
CUSIP 06406RBC0
1,615,000 BERKSHIRE HATHAWAY FIN 1,614,693.15 1,510,186.50 1.02 104,506.65- 10,937.14 DTD 03/15/2022 2.300% 03/15/2027 99.9810 93.5100

CALLABLE
MOODY'S RATING AA2
CUSIP 084664CZ2
367,689.92 BMW VEHICLE LEASE TRUST 367,634.96 361,402.42 0.24 6,232.54- 67.41 SER 2022-1 CL A3 *0 DAY DELAY* 99.9851 98.2900
DTD 01/19/22 1.100 03/25/2025
CUSIP 05601XAC3
190,761.46 BMW VEHICLE LEASE TRUST 190,741.76 188,291.10 0.13 2,450.66- 8.74 SER 2021-2 CL A3 *0 DAY DELAY* 99.9897 98.7050
DTD 09/15/21 0.330 12/26/2024

MOODY'S RATING AAA
CUSIP 09690AAC7
530,000 BMW VEHICLE OWNER TRUST 529,972.44 515,276.60 0.35 14,695.84- 283.55 ASSET BCKD SEC SER 2022-A CL A3 99.9948 97.2220
DTD 05/18/2022 3.210% 08/25/2026

CALLABLE

MOODY'S RATING AAA
CUSIP 05602RAD3
755,000 CALIFORNIA ST 772,342.35 726,121.25 0.49 46,221.10- 4,530.00 TXBL-REF 102.2970 96.1750
DTD 10/24/19 2.400 10/01/2024
MOODY'S RATING AA2
CUSIP 13063DRK6
606
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,100,000 CATERPILLAR FINL SERVICE 1,111,517.00 1,054,064.00 0.71 57,453.00- 3,481.81 MED TERM NOTE 101.0470 95.8240
DTD 11/08/19 2.150 11/08/2024
MOODY'S RATING A2
CUSIP 14913Q3B3
960,000 CHARLES SCHWAB CORP 959,729.90 859,939.20 0.58 99,790.70- 7,709.33 DTD 03/03/2022 2.450% 03/03/2027 99.9719 89.5770

CALLABLE
MOODY'S RATING A2
CUSIP 808513BY0
1,500,000 FED HOME LN BK 1,564,890.20 1,463,550.00 0.99 101,340.20- 2,036.46 DTD 05/08/14 2.875 06/14/2024 104.3260 97.5700

MOODY'S RATING AAA
CUSIP 3130A1XJ2
2,000,000 FED HOME LN BK 2,103,380.00 1,943,320.00 1.31 160,060.00- 17,250.00 DTD 08/15/14 2.875 09/13/2024 105.1690 97.1660

MOODY'S RATING AAA
CUSIP 3130A2UW4
1,300,000 FED HOME LN MTG CORP 1,398,414.06 1,261,923.00 0.85 136,491.06- 3,435.25 SER KO41 CL A2 *24 DAY DELAY* 107.5703 97.0710
DTD 12/01/14 3.171 10/25/2024
CUSIP 3137BFE98
2,365,000 FED HOME LN MTG CORP 2,363,178.95 2,232,489.05 1.50 130,689.90- 13,697.29 DTD 02/14/20 1.500 02/12/2025 99.9230 94.3970

MOODY'S RATING AAA
CUSIP 3137EAEP0
1,250,000 FED HOME LN MTG CORP 1,243,775.00 1,140,487.50 0.77 103,287.50- 2,083.33 SER USD 99.5020 91.2390
DTD 07/23/20 0.375 07/21/2025

MOODY'S RATING AAA
CUSIP 3137EAEU9
607
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,500,000 FED HOME LN MTG CORP 2,489,362.80 2,268,425.00 1.53 220,937.80- 2,552.08 DTD 09/25/20 0.375 09/23/2025 99.5745 90.7370

MOODY'S RATING AAA
CUSIP 3137EAEX3
855,000 FED HOME LN MTG CORP 854,153.55 836,532.00 0.56 17,621.55- 160.31 DTD 12/04/20 0.250 12/04/2023 99.9010 97.8400

MOODY'S RATING AAA
CUSIP 3137EAFA2
1,500,000 FED NATL MTG ASSN 1,484,895.00 1,446,480.00 0.97 38,415.00- 13,052.08 DTD 07/08/19 1.750 07/02/2024 98.9930 96.4320

MOODY'S RATING AAA
CUSIP 3135G0V75
1,975,000 FED NATL MTG ASSN 1,965,802.75 1,884,367.25 1.27 81,435.50- 6,775.35 DTD 10/18/19 1.625 10/15/2024 99.5343 95.4110

MOODY'S RATING AAA
CUSIP 3135G0W66
1,295,000 FED NATL MTG ASSN 1,309,953.95 1,227,880.15 0.83 82,073.80- 10,171.15 DTD 01/10/20 1.625 01/07/2025 101.1548 94.8170

MOODY'S RATING AAA
CUSIP 3135G0X24
1,860,000 FED NATL MTG ASSN 1,856,168.40 1,720,165.20 1.16 136,003.20- 2,228.13 DTD 04/24/20 0.625 04/22/2025 99.7940 92.4820

MOODY'S RATING AAA
CUSIP 3135G03U5
2,500,000 FED NATL MTG ASSN 2,499,227.30 2,295,200.00 1.54 204,027.30- 486.11 DTD 06/19/20 0.500 06/17/2025 99.9691 91.8080

MOODY'S RATING AAA
CUSIP 3135G04Z3
2,500,000 FED NATL MTG ASSN 2,487,983.75 2,274,875.00 1.53 213,108.75- 3,281.25 DTD 08/27/20 0.375 08/25/2025 99.5194 90.9950

MOODY'S RATING AAA
CUSIP 3135G05X7
608
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STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 2,500,000 FED NATL MTG ASSN 2,492,700.00 2,265,800.00 1.53 226,900.00- 1,875.00 DTD 11/12/20 0.500 11/07/2025 99.7080 90.6320

MOODY'S RATING AAA
CUSIP 3135G06G3
1,000,000 FHLMC MULTIFAMILY STRUCTURED P 1,079,687.50 957,830.00 0.64 121,857.50- 2,508.33 SER K049 CL A2 *24 DAY DELAY* 107.9688 95.7830
DTD 10/01/15 3.010 08/25/2025
CUSIP 3137BLMZ8
950,000 FHLMC MULTIFAMILY STRUCTURED P 1,018,132.81 914,660.00 0.62 103,472.81- 2,639.42 SER K050 CL A2 *24 DAY DELAY* 107.1719 96.2800
DTD 11/01/15 08/25/2025
CUSIP 3137BLW95
440,000 FHLMC MULTIFAMILY STRUCTURED P 453,079.69 423,060.00 0.28 30,019.69- 1,212.93 SER K051 CL A2 *24 DAY DELAY* 102.9727 96.1500
DTD 12/01/15 3.308 09/25/2025
CUSIP 3137BM7C4
570,000 FHLMC MULTIFAMILY STRUCTURED P 582,001.17 543,044.70 0.37 38,956.47- 1,422.63 SER K053 CL A2 *24 DAY DELAY* 102.1055 95.2710
DTD 03/01/16 2.995 12/25/2025
CUSIP 3137BN6G4
650,000 FHLMC MULTIFAMILY STRUCTURED P 687,451.17 608,523.50 0.41 78,927.67- 1,437.04 SER K058 CL A2 *24 DAY DELAY* 105.7617 93.6190
DTD 11/01/16 2.653 08/25/2026
CUSIP 3137BSP72
1,000,000 FHLMC MULTIFAMILY STRUCTURED P 950,664.06 945,410.00 0.64 5,254.06- 2,703.33 SER K068 CL A2 *24 DAY DELAY* 95.0664 94.5410
DTD 10/01/17 3.244 08/25/2027

MOODY'S RATING AAA
CUSIP 3137FBBX3
605,741.63 GM FINANCIAL AUTOMOBILE LEASIN 605,733.40 597,218.85 0.40 8,514.55- 65.62 SER 2021-3 CL A3 *0 DAY DELAY* 99.9987 98.5930
DTD 08/18/21 0.390 10/21/2024
CUSIP 36262XAC8
609
CC 09-06-2023
609 of 674
PAGE 8

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 945,000 GM FINANCIAL AUTOMOBILE LEASIN 944,991.87 926,600.85 0.62 18,391.02- 534.19 SER 2022-1 CL A3 *0 DAY DELAY* 99.9992 98.0530
DTD 02/23/22 1.850 03/20/2025

MOODY'S RATING AAA
CUSIP 36265MAC9
350,000 GM FINANCIAL SECURITIZED TERM 349,991.08 334,267.50 0.23 15,723.58- 99.17 SER 2021-4 CL A3 *0 DAY DELAY* 99.9975 95.5050
DTD 10/21/21 0.680 09/16/2026

MOODY'S RATING AAA
CUSIP 362554AC1
390,000 GM FINANCIAL SECURITIZED TERM 389,918.49 377,383.50 0.25 12,534.99- 503.75 ASSET BCKD SEC SER 2022-2 CL A3 99.9791 96.7650
DTD 04/13/2022 3.100% 02/16/2027

CALLABLE

MOODY'S RATING AAA
CUSIP 362585AC5
295,000 GM FINANCIAL SECURITIZED TERM 294,974.36 281,786.95 0.19 13,187.41- 154.88 SER 2022-1 CL A3 *0 DAY DELAY* 99.9913 95.5210
DTD 01/19/22 1.260 11/16/2026
CUSIP 380146AC4
1,400,000 GUARDIAN LIFE GLOB FUND 1,385,860.00 1,246,014.00 0.84 139,846.00- 714.58 144A PRIV PLCMT 0.875 12/10/2025 98.9900 89.0010
MOODY'S RATING AA1
CUSIP 40139LBC6
15,563.04 HONDA AUTO RECEIVABLES OWNER T 15,561.82 15,484.45 0.01 77.37- 5.67 SER 2020-2 CL A3 *0 DAY DELAY* 99.9922 99.4950
DTD 05/27/20 0.820 07/15/2024

MOODY'S RATING AAA
CUSIP 43813DAC2
119,274.8 HONDA AUTO RECEIVABLES OWNER T 119,272.63 116,475.42 0.08 2,797.21- 8.95 SER 2021-1 CL A3 *0 DAY DELAY* 99.9982 97.6530
DTD 02/24/21 0.270 04/21/2025

MOODY'S RATING AAA
CUSIP 43813GAC5
610
CC 09-06-2023
610 of 674
PAGE 9

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 132,905.15 HONDA AUTO RECEIVABLES OWNER T 132,885.62 131,063.08 0.09 1,822.54- 17.76 SER 2020-3 CL A3 *0 DAY DELAY* 99.9853 98.6140
DTD 09/29/20 0.370 10/18/2024
CUSIP 43813KAC6
740,000 HONDA AUTO RECEIVABLES OWNER T 739,888.70 707,077.40 0.48 32,811.30- 618.31 SER 2022-1 CL A3 *0 DAY DELAY* 99.9850 95.5510
DTD 02/23/22 1.000 05/15/2026

MOODY'S RATING AAA
CUSIP 43815BAC4
460,000 HONDA AUTO RECEIVABLES OWNER T 459,903.03 441,498.80 0.30 18,404.23- 112.44 SER 2021-4 CL A3 *0 DAY DELAY* 99.9789 95.9780
DTD 11/24/21 0.880 01/21/2026

MOODY'S RATING AAA
CUSIP 43815GAC3
239,581.62 HYUNDAI AUTO LEASE SECURITIZAT 239,545.68 238,259.13 0.16 1,286.55- 30.75 SER 2021-B CL A3 *0 DAY DELAY* 99.9850 99.4480
144A PRIV PLCMT 0.330 06/17/2024

MOODY'S RATING AAA
CUSIP 44891VAC5
540,000 HYUNDAI AUTO LEASE SECURITIZAT 539,988.07 530,393.40 0.36 9,594.67- 278.40 SER 2022-A CL A3 *0 DAY DELAY* 99.9978 98.2210
144A PRIV PLCMT 1.160 01/15/2025

MOODY'S RATING AAA
CUSIP 44891WAC3
1,010,000 HYUNDAI AUTO RECEIVABLES TRUST 1,009,961.12 969,367.70 0.65 40,593.42- 996.53 ASSET BCKD SEC SER 2022-A CL A3 99.9962 95.9770
DTD 03/16/2022 2.220% 10/15/2026

CALLABLE
CUSIP 448977AD0
304,823.89 HYUNDAI AUTO RECEIVABLES TRUST 304,791.82 296,831.41 0.20 7,960.41- 51.48 SER 2021-A CL A3 *0 DAY DELAY* 99.9895 97.3780
DTD 04/28/21 0.380 09/15/2025
CUSIP 44933LAC7
611
CC 09-06-2023
611 of 674
PAGE 10

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,330,000 HYUNDAI AUTO RECEIVABLES TRUST 1,296,371.65 1,277,691.10 0.86 18,680.55- 437.42 SER 2021-C CL A3 *0 DAY DELAY* 97.4716 96.0670
DTD 11/17/21 0.740 05/15/2026
CUSIP 44935FAD6
2,800,000 INTER-AMERICAN DEVEL BK 2,792,300.00 2,747,752.00 1.85 44,548.00- 894.44 DTD 09/02/20 0.250 11/15/2023 99.7250 98.1340

MOODY'S RATING AAA
CUSIP 4581X0DP0
2,460,000 INTER-AMERICAN DEVEL BK 2,448,733.20 2,219,190.60 1.49 229,542.60- 4,245.21 DTD 04/20/21 0.875 04/20/2026 99.5420 90.2110

MOODY'S RATING AAA
CUSIP 4581X0DV7
2,400,000 INTL BK RECON & DEVELOP 2,388,859.25 2,178,336.00 1.47 210,523.25- 2,100.00 DTD 10/28/20 0.500 10/28/2025 99.5358 90.7640

MOODY'S RATING AAA
CUSIP 459058JL8
2,500,000 INTL FINANCE CORP 2,471,150.00 2,286,050.00 1.54 185,100.00- 4,296.88 DTD 07/16/20 0.375 07/16/2025 98.8460 91.4420

MOODY'S RATING AAA
CUSIP 45950KCT5
450,000 JOHN DEERE OWNER TRUST 449,900.46 433,453.50 0.29 16,446.96- 464.00 ASSET BCKD SEC SER 2022-A CL A3 99.9779 96.3230
DTD 03/16/2022 2.320% 09/16/2026

NON CALLABLE

MOODY'S RATING AAA
CUSIP 47787JAC2
24,012.85 JOHN DEERE OWNER TRUST 24,009.19 23,840.44 0.02 168.75- 5.44 SER 2020-B CL A3 *0 DAY DELAY* 99.9848 99.2820
DTD 07/22/20 0.510 11/15/2024

MOODY'S RATING AAA
CUSIP 47787NAC3
612
CC 09-06-2023
612 of 674
PAGE 11

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,999.85 JOHN DEERE OWNER TRUST 1,999.73 1,996.37 0.00 3.36- 0.98 SER 2020-A CL A3 *0 DAY DELAY* 99.9940 99.8260
DTD 03/11/20 1.100 08/15/2024

MOODY'S RATING AAA
CUSIP 47789KAC7
501,919.07 JOHN DEERE OWNER TRUST 501,874.29 480,833.45 0.32 21,040.84- 108.75 SER 2021-B CL A3 *0 DAY DELAY* 99.9911 95.7990
DTD 07/21/21 0.520 03/16/2026

MOODY'S RATING AAA
CUSIP 47789QAC4
655,000 JOHN DEERE OWNER TRUST 654,937.45 636,358.70 0.43 18,578.75- 1,088.76 ASSET BCKD SEC SER 2022-B CL A3 99.9905 97.1540
DTD 07/20/2022 3.740% 02/16/2027

NON CALLABLE

MOODY'S RATING AAA
CUSIP 47800AAC4
1,050,000 JOHN DEERE OWNER TRUST 1,049,918.52 1,041,673.50 0.70 8,245.02- 2,375.33 ASSET BCKD SEC SER 2022-C CL A3 99.9923 99.2070
DTD 10/19/2022 5.090% 06/15/2027

CALLABLE

MOODY'S RATING AAA
CUSIP 47800BAC2
655,000 JPMORGAN CHASE & 655,406.85 621,739.10 0.42 33,667.75- 141.04 SER F2F 100.0621 94.9220
DTD 06/23/21 06/23/2025
MOODY'S RATING A1
CUSIP 46647PCK0
401,000 JPMORGAN CHASE & CO 415,969.33 375,536.50 0.25 40,432.83- 1,600.96 DTD 04/22/20 04/22/2026 103.7330 93.6500
MOODY'S RATING A1
CUSIP 46647PBK1
613
CC 09-06-2023
613 of 674
PAGE 12

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,370,000 JPMORGAN CHASE & CO 1,371,773.90 1,302,376.80 0.88 69,397.10- 940.73 DTD 06/01/21 06/01/2025 100.1295 95.0640
MOODY'S RATING A1
CUSIP 46647PCH7
1,000,000 MASSMUTUAL GLOBAL FUNDIN 1,002,230.00 883,940.00 0.60 118,290.00- 5,500.00 144A PRIV PLCMT 1.200 07/16/2026 100.2230 88.3940
MOODY'S RATING AA3
CUSIP 57629WDE7
945,000 MASTERCARD INC 944,083.35 955,687.95 0.64 11,604.60 14,332.50 DTD 03/09/2023 4.875% 03/09/2028 99.9030 101.1310

CALLABLE
MOODY'S RATING AA3
CUSIP 57636QAW4
1,115,000 MET LIFE GLOB FUNDING I 1,113,728.90 993,320.05 0.67 120,408.85- 9,872.40 144A PRIV PLCMT 1.875 01/11/2027 99.8860 89.0870
MOODY'S RATING AA3
CUSIP 59217GER6
770,000 MET TOWER GLOBAL FUNDING 769,291.60 673,649.90 0.45 95,641.70- 2,860.76 144A PRIV PLCMT 1.250 09/14/2026 99.9080 87.4870
MOODY'S RATING AA3
CUSIP 58989V2D5
650,000 MORGAN STANLEY 615,699.50 610,161.50 0.41 5,538.00- 2,488.85 DTD 04/28/20 04/28/2026 94.7230 93.8710
MOODY'S RATING A1
CUSIP 6174468Q5
1,680,000 NEW YORK LIFE GLOBAL FDG 1,678,185.60 1,578,561.60 1.06 99,624.00- 11,300.33 144A PRIV PLCMT 1.450 01/14/2025 99.8920 93.9620

MOODY'S RATING AAA
CUSIP 64952WEK5
670,000 NORTHERN TRUST CORP 668,914.60 645,457.90 0.43 23,456.70- 3,796.67 DTD 05/10/2022 4.000% 05/10/2027 99.8380 96.3370

CALLABLE
MOODY'S RATING A2
CUSIP 665859AW4
614
CC 09-06-2023
614 of 674
PAGE 13

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 850,000 NORTHWESTERN MUTUAL GLBL 827,449.50 757,520.00 0.51 69,929.50- 3,154.44 144A PRIV PLCMT 0.800 01/14/2026 97.3470 89.1200

MOODY'S RATING AAA
CUSIP 66815L2A6
1,170,000 NORTHWESTERN MUTUAL GLBL 1,169,602.20 1,133,145.00 0.76 36,457.20- 23,400.00 DTD 07/01/2022 4.000% 07/01/2025 99.9660 96.8500

NON CALLABLE
144A PRIVATE PLACEMENT

MOODY'S RATING AAA
CUSIP 66815L2J7
370,000 PACCAR FINANCIAL CORP 369,182.30 356,162.00 0.24 13,020.30- 3,005.22 MED TERM NOTE 99.7790 96.2600
DTD 08/15/19 2.150 08/15/2024
MOODY'S RATING A1
CUSIP 69371RQ25
680,000 PACCAR FINANCIAL CORP 679,632.80 643,749.20 0.43 35,883.60- 1,341.11 MED TERM NOTE 99.9460 94.6690
DTD 08/09/21 0.500 08/09/2024
MOODY'S RATING A1
CUSIP 69371RR40
885,000 PACCAR FINANCIAL CORP 884,769.90 847,033.50 0.57 37,736.40- 5,885.25 DTD 04/07/2022 2.850% 04/07/2025 99.9740 95.7100

NON CALLABLE
MOODY'S RATING A1
CUSIP 69371RR73
904,000 PRICOA GLOBAL FUNDING 1 832,972.72 812,831.60 0.55 20,141.12- 2,410.67 144A PRIV PLCMT 0.800 09/01/2025 92.1430 89.9150
MOODY'S RATING AA3
CUSIP 74153WCM9
885,000 PRICOA GLOBAL FUNDING 1 884,088.45 828,121.05 0.56 55,967.40- 706.77 144A PRIV PLCMT 1.150 12/06/2024 99.8970 93.5730
MOODY'S RATING AA3
CUSIP 74153WCQ0
615
CC 09-06-2023
615 of 674
PAGE 14

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

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 ROYAL BANK OF CANADA 1,533,359.18 1,453,845.00 0.98 79,514.18- 17,531.25 DTD 07/16/19 2.550 07/16/2024 102.2240 96.9230
MOODY'S RATING A1
CUSIP 78013XZU5
1,050,000 ROYAL BANK OF CANADA 1,049,611.50 1,010,814.00 0.68 38,797.50- 7,579.69 MEDIUM TERM NOTE 99.9630 96.2680

CONVERTIBLE
DTD 04/14/2022 3.375% 04/14/2025

NON CALLABLE
MOODY'S RATING A1
CUSIP 78016EZ59
1,760,000 SALESFORCE.COM INC 1,748,937.40 1,675,344.00 1.13 73,593.40- 5,072.22 DTD 07/12/21 0.625 07/15/2024 99.3715 95.1900
MOODY'S RATING A2
CUSIP 79466LAG9
1,500,000 TORONTO-DOMINION BANK 1,527,255.00 1,454,670.00 0.98 72,585.00- 2,097.92 MED TERM NOTE 101.8170 96.9780
DTD 06/12/19 2.650 06/12/2024
MOODY'S RATING A1
CUSIP 89114QCA4
700,000 TORONTO-DOMINION BANK 674,737.00 658,924.00 0.44 15,813.00- 4,821.25 MED TERM NOTE SER FXD 96.3910 94.1320
DTD 01/12/22 1.450 01/10/2025
MOODY'S RATING A1
CUSIP 89114TZL9
91,064.31 TOYOTA AUTO RECEIVABLES OWNER 91,047.34 90,097.21 0.06 950.13- 14.17 SER 2020-D CL A3 *0 DAY DELAY* 99.9814 98.9380
DTD 10/13/20 0.350 01/15/2025
CUSIP 89236XAC0
430,000 TOYOTA AUTO RECEIVABLES OWNER 429,990.84 411,793.80 0.28 18,197.04- 135.69 SER 2021-D CL A3 *0 DAY DELAY* 99.9979 95.7660
DTD 11/15/21 0.710 04/15/2026
CUSIP 89238JAC9
616
CC 09-06-2023
616 of 674
PAGE 15

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 439,862.73 TOYOTA AUTO RECEIVABLES OWNER 439,781.10 430,260.53 0.29 9,520.57- 50.83 SER 2021-A CL A3 *0 DAY DELAY* 99.9815 97.8170
DTD 02/08/21 0.260 05/15/2025

MOODY'S RATING AAA
CUSIP 89240BAC2
91,167.99 TOYOTA LEASE OWNER TRUST 89,344.63 90,883.55 0.06 1,538.92 8.89 SER 2021-A CL A3 *0 DAY DELAY* 98.0000 99.6880
144A PRIV PLCMT 0.390 04/22/2024

MOODY'S RATING AAA
CUSIP 89238EAC0
1,150,000 TOYOTA LEASE OWNER TRUST 1,149,818.99 1,124,769.00 0.76 25,049.99- 688.72 ASSET BCKD SEC SER 2022-A CL A3 99.9843 97.8060
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 1,238,356.20 0.83 146,034.40- 562.66 MED TERM NOTE 99.9560 89.4120
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 1,146,012.30 0.77 67,359.60- 8,221.50 DTD 01/13/22 1.450 01/13/2025 99.8660 94.3220
MOODY'S RATING A1
CUSIP 89236TJT3
3,100,000 UNITED STATES TREASURY NOTES 3,057,617.20 2,932,414.00 1.97 125,203.20- 15,921.20 DTD 03/15/2022 1.750% 03/15/2025 98.6328 94.5940

MOODY'S RATING AAA
CUSIP 91282CED9
3,250,000 UNITED STATES TREASURY NOTES 3,260,312.50 3,125,590.00 2.10 134,722.50- 287.02 DTD 06/30/2022 3.250% 06/30/2027 100.3173 96.1720

MOODY'S RATING AAA
CUSIP 91282CEW7
617
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PAGE 16

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 400,000 UNITED STATES TREASURY NOTES 393,218.75 377,108.00 0.25 16,110.75- 4,588.40 DTD 07/31/2022 2.750% 07/31/2027 98.3047 94.2770

MOODY'S RATING AAA
CUSIP 91282CFB2
4,500,000 UNITED STATES TREASURY NOTES 4,468,902.34 4,303,665.00 2.90 165,237.34- 47,002.38 DTD 08/31/2022 3.125% 08/31/2027 99.3090 95.6370

MOODY'S RATING AAA
CUSIP 91282CFH9
3,450,000 UNITED STATES TREASURY NOTES 3,421,152.34 3,430,714.50 2.31 9,562.16 35,772.54 DTD 09/30/2022 4.125% 09/30/2027 99.1639 99.4410

MOODY'S RATING AAA
CUSIP 91282CFM8
850,000 UNITED STATES TREASURY NOTES 852,656.25 837,947.00 0.56 14,709.25- 2,789.79 DTD 11/30/2022 3.875% 11/30/2027 100.3125 98.5820

MOODY'S RATING AAA
CUSIP 91282CFZ9
2,750,000 UNITED STATES TREASURY NOTES 2,775,107.42 2,711,445.00 1.83 63,662.42- 289.57 DTD 12/31/2022 3.875% 12/31/2027 100.9130 98.5980

MOODY'S RATING AAA
CUSIP 91282CGC9
3,000,000 UNITED STATES TREASURY NOTES 2,957,929.69 2,913,180.00 1.96 44,749.69- 43,798.34 DTD 01/31/2023 3.500% 01/31/2028 98.5977 97.1060

MOODY'S RATING AAA
CUSIP 91282CGH8
3,700,000 UNITED STATES TREASURY NOTES 3,699,113.28 3,672,694.00 2.47 26,419.28- 49,467.39 DTD 02/28/2023 4.000% 02/29/2028 99.9760 99.2620

MOODY'S RATING AAA
CUSIP 91282CGP0
1,035,000 UNITEDHEALTH GROUP INC 1,025,051.35 935,960.85 0.63 89,090.50- 1,520.87 DTD 05/19/21 1.150 05/15/2026 99.0388 90.4310
MOODY'S RATING A3
CUSIP 91324PEC2
618
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PAGE 17

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 675,000 UNITEDHEALTH GROUP INC 675,316.70 650,693.25 0.44 24,623.45- 3,191.25 DTD 05/20/2022 3.700% 05/15/2027 100.0469 96.3990

CALLABLE
MOODY'S RATING A3
CUSIP 91324PEG3
1,250,000 US BANCORP 1,268,262.50 1,205,687.50 0.81 62,575.00- 12,583.33 DTD 07/29/19 2.400 07/30/2024 101.4610 96.4550
MOODY'S RATING A3
CUSIP 91159HHX1
1,500,000 US TREASURY NOTE 1,469,765.63 1,364,940.00 0.92 104,825.63- 1,564.23 DTD 07/31/20 0.250 07/31/2025 97.9844 90.9960

MOODY'S RATING AAA
CUSIP 91282CAB7
2,400,000 US TREASURY NOTE 2,366,140.63 2,173,776.00 1.46 192,364.63- 1,508.20 DTD 09/30/20 0.250 09/30/2025 98.5892 90.5740

MOODY'S RATING AAA
CUSIP 91282CAM3
2,450,000 US TREASURY NOTE 2,422,492.19 2,211,125.00 1.49 211,367.19- 1,031.93 DTD 10/31/20 0.250 10/31/2025 98.8772 90.2500

MOODY'S RATING AAA
CUSIP 91282CAT8
2,250,000 US TREASURY NOTE 2,209,658.20 2,030,985.00 1.37 178,673.20- 714.65 DTD 11/30/20 0.375 11/30/2025 98.2070 90.2660

MOODY'S RATING AAA
CUSIP 91282CAZ4
2,500,000 US TREASURY NOTE 2,456,445.31 2,244,525.00 1.51 211,920.31- 3,910.57 DTD 02/01/21 0.375 01/31/2026 98.2578 89.7810

MOODY'S RATING AAA
CUSIP 91282CBH3
2,500,000 US TREASURY NOTE 2,493,652.34 2,251,175.00 1.52 242,477.34- 3,158.97 DTD 04/30/21 0.750 04/30/2026 99.7461 90.0470

MOODY'S RATING AAA
CUSIP 91282CBW0
619
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PAGE 18

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF ASSETS AND LIABILITIES
COST VALUE MARKET VALUE % TOTAL UNREALIZED

PAR VALUE/SHARES DESCRIPTION / UNIT COST / UNIT PRICE MARKET GAIN/LOSS ACCRUED INCOME ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 1,400,000 US TREASURY NOTE 1,379,054.68 1,252,566.00 0.84 126,488.68- 3,079.24 DTD 09/30/21 0.875 09/30/2026 98.5039 89.4690

MOODY'S RATING AAA
CUSIP 91282CCZ2
1,400,000 US TREASURY NOTE 1,391,468.75 1,258,908.00 0.85 132,560.75- 2,653.53 DTD 11/01/21 1.125 10/31/2026 99.3906 89.9220
CUSIP 91282CDG3
1,700,000 US TREASURY NOTE 1,753,191.41 1,645,090.00 1.11 108,101.41- 15,168.51 DTD 08/15/14 2.375 08/15/2024 103.1289 96.7700

MOODY'S RATING AAA
CUSIP 912828D56
2,000,000 US TREASURY NOTE 2,018,574.22 1,934,060.00 1.30 84,514.22- 109.29 DTD 06/30/17 2.000 06/30/2024 100.9287 96.7030

MOODY'S RATING AAA
CUSIP 912828XX3
1,700,000 US TREASURY NOTE 1,705,976.56 1,652,791.00 1.11 53,185.56- 5,728.26 DTD 05/01/17 2.000 04/30/2024 100.3516 97.2230

MOODY'S RATING AAA
CUSIP 912828X70
2,100,000 US TREASURY NOTE 2,087,203.13 1,996,470.00 1.34 90,733.13- 99.86 DTD 12/31/19 1.750 12/31/2024 99.3906 95.0700
CUSIP 912828YY0
1,500,000 US TREASURY NOTE 1,523,144.53 1,405,965.00 0.95 117,179.53- 5,733.77 DTD 03/02/20 1.125 02/28/2025 101.5430 93.7310

MOODY'S RATING AAA
CUSIP 912828ZC7
2,500,000 US TREASURY NOTE 2,360,839.85 2,300,200.00 1.55 60,639.85- 1,579.48 DTD 04/30/20 0.375 04/30/2025 94.4336 92.0080

MOODY'S RATING AAA
CUSIP 912828ZL7
620
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PAGE 19

STATEMENT OF ASSETS AND LIABILITIES CITY OF CUPERTINO
AS OF JUNE 30, 2023 ACCOUNT NUMBER
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

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 VERIZON MASTER TRUST 569,974.92 563,051.70 0.38 6,923.22- 647.90 ASSET BCKD SEC SER 2022-5 CL A1A 99.9956 98.7810
DTD 08/11/2022 VAR CPN 07/20/2027

CALLABLE
CUSIP 92348KAV5
110,213.94 VERIZON OWNER TRUST 110,190.79 109,444.65 0.07 746.14- 15.83 SER 2020-B CL A *0 DAY DELAY* 99.9790 99.3020
DTD 08/12/20 0.470 02/20/2025

MOODY'S RATING AAA
CUSIP 92290BAA9
350,000 WALMART INC 349,338.50 312,490.50 0.21 36,848.00- 1,061.67 DTD 09/17/21 1.050 09/17/2026 99.8110 89.2830
MOODY'S RATING AA2
CUSIP 931142ER0
TOTAL BOND & NOTES 154,017,477.20 145,426,456.81 97.89 8,591,020.39- 603,833.31 ====================================================================================================================================== TOTAL INVESTMENTS 157,138,848.64 148,558,235.43 100.00 8,580,613.21- 607,618.50 TOTAL ACCRUALS 607,618.50 607,618.50
====================================================================================================================================== TOTAL ACCRUALS AND INVESTMENTS 157,746,467.14 149,165,853.93 621
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PAGE 20

CASH SUMMARY CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

CASH SUMMARY

DESCRIPTION PRINCIPAL CASH INCOME CASH
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 0.00

RECEIPTS
NET INTEREST COLLECTED 0.00 272,391.20
TRANSFER RECEIPTS 252,391.20 0.00
SALES 591,254.89 0.00
CASH MANAGEMENT SALES 1,469,637.67 0.00
TOTAL CASH RECEIPTS 2,313,283.76 272,391.20

DISBURSEMENTS
INVESTMENT MANAGEMENT EXPENSES 9,168.78- 0.00
TRANSFER DISBURSEMENTS 0.00 252,391.20-
PURCHASES 1,460,358.13- 0.00
CASH MANAGEMENT PURCHASES 843,756.85- 0.00
TOTAL CASH DISBURSEMENTS 2,313,283.76- 252,391.20-
ENDING BALANCE 0.00 20,000.00
________________________________________________________________________________________________________________________________________ 622
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PAGE 21

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ BEGINNING BALANCE 0.00 156,873,924.60
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯

CASH EQUIVALENTS
06/01/23 INTEREST RECEIVED 2,657.33
AS 100% TREAS MM FD-SVC CL #008
INTEREST FROM 5/1/23 TO 5/31/23
06/01/23 INTEREST RECEIVED 110.76

PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
INTEREST FROM 5/1/23 TO 5/31/23
06/29/23 1,500,000 PURCHASED 1,460,358.13- 1,460,358.13 U.S. TREASURY BILLS 12/28/23
CUSIP 912796ZN2
AT $97.3572 ON TRADE DATE 06/28/2023
TO SETTLE ON 06/29/2023

MERRILL LYNCH,PIERCE,FENNER
06/30/23 843,646.09 CASH SWEEP PURCHASES FOR STMT PERIOD 843,646.09- 843,646.09 AS 100% TREAS MM FD-SVC CL #008
13 TRANSACTIONS
06/30/23 110.76 CASH SWEEP PURCHASES FOR STMT PERIOD 110.76- 110.76

PRINCIPAL PUBLIC DEPOSIT SWEEP PRGRM
1 TRANSACTIONS
06/30/23 1,469,637.67- CASH SWEEP SALES FOR STMT PERIOD 1,469,637.67 1,469,637.67- AS 100% TREAS MM FD-SVC CL #008
3 TRANSACTIONS

BONDS & NOTES
06/15/23 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 6/15/23
623
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PAGE 22

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/15/23 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 6/15/23
06/26/23 INTEREST RECEIVED 63.10
BMW VEHICLE LEASE TR 0.330% 12/26/24
CUSIP 09690AAC7
$0.00015/PV ON 229,453.89 PV
DUE 6/25/23
06/26/23 38,692.43- PAID DOWN 38,692.43 38,688.44- 3.99 BMW VEHICLE LEASE TR 0.330% 12/26/24
CUSIP 09690AAC7
TO SETTLE ON 06/26/2023
06/26/23 INTEREST RECEIVED 378.07
BMW VEHICLE LEASE TR 1.100% 3/25/25
CUSIP 05601XAC3
$0.00084/PV ON 412,445.09 PV
DUE 6/25/23
06/26/23 44,755.17- PAID DOWN 44,755.17 44,748.48- 6.69 BMW VEHICLE LEASE TR 1.100% 3/25/25
CUSIP 05601XAC3
TO SETTLE ON 06/26/2023
06/26/23 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 6/25/23
06/14/23 INTEREST RECEIVED 21,562.50
FED HOME LN BK 2.875% 6/14/24
CUSIP 3130A1XJ2
INTEREST ON 1,500,000.000 UNITS
624
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PAGE 23

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/05/23 INTEREST RECEIVED 1,068.75
FED HOME LN MTG CORP 0.250% 12/04/23
CUSIP 3137EAFA2
INTEREST ON 855,000.000 UNITS
06/26/23 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 6/25/23
06/20/23 INTEREST RECEIVED 6,250.00
FED NATL MTG ASSN 0.500% 6/17/25
CUSIP 3135G04Z3
INTEREST ON 2,500,000.000 UNITS
06/26/23 INTEREST RECEIVED 1,437.04
FHLMC MULTIFAMILY ST 2.653% 8/25/26
CUSIP 3137BSP72
$0.00221/PV ON 650,000.00 PV
DUE 6/25/23
06/26/23 INTEREST RECEIVED 1,422.62
FHLMC MULTIFAMILY ST 2.995% 12/25/25
CUSIP 3137BN6G4
$0.00250/PV ON 570,000.00 PV
DUE 6/25/23
06/26/23 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 6/25/23
06/26/23 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 6/25/23
625
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625 of 674
PAGE 24

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/26/23 INTEREST RECEIVED 1,212.93
FHLMC MULTIFAMILY ST 3.308% 9/25/25
CUSIP 3137BM7C4
$0.00276/PV ON 440,000.00 PV
DUE 6/25/23
06/16/23 INTEREST RECEIVED 1,007.50
GM FINANCIAL ABS 3.100% 2/16/27
CUSIP 362585AC5
$0.00258/PV ON 390,000.00 PV
DUE 6/16/23
06/20/23 INTEREST RECEIVED 227.08
GM FINANCIAL AUTOMOB 0.390% 10/21/24
CUSIP 36262XAC8
$0.00024/PV ON 698,702.49 PV
DUE 6/20/23
06/20/23 92,960.86- PAID DOWN 92,960.86 92,959.60- 1.26 GM FINANCIAL AUTOMOB 0.390% 10/21/24
CUSIP 36262XAC8
06/20/23 INTEREST RECEIVED 1,496.25
GM FINANCIAL AUTOMOB 1.850% 3/20/25
CUSIP 36265MAC9
$0.00158/PV ON 945,000.00 PV
DUE 6/20/23
06/16/23 INTEREST RECEIVED 198.33
GM FINANCIAL SECURIT 0.680% 9/16/26
CUSIP 362554AC1
$0.00057/PV ON 350,000.00 PV
DUE 6/16/23
06/16/23 INTEREST RECEIVED 309.75
GM FINANCIAL SECURIT 1.260% 11/16/26
CUSIP 380146AC4
$0.00105/PV ON 295,000.00 PV
DUE 6/16/23
626
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626 of 674
PAGE 25

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/21/23 INTEREST RECEIVED 30.01
HONDA AUTO RECEIVABL 0.270% 4/21/25
CUSIP 43813GAC5
$0.00010/PV ON 133,366.83 PV
DUE 6/21/23
06/21/23 14,092.03- PAID DOWN 14,092.03 14,091.77- 0.26 HONDA AUTO RECEIVABL 0.270% 4/21/25
CUSIP 43813GAC5
06/20/23 INTEREST RECEIVED 48.12
HONDA AUTO RECEIVABL 0.370% 10/18/24
CUSIP 43813KAC6
$0.00008/PV ON 156,079.61 PV
DUE 6/18/23
06/20/23 23,174.46- PAID DOWN 23,174.46 23,171.06- 3.40 HONDA AUTO RECEIVABL 0.370% 10/18/24
CUSIP 43813KAC6
TO SETTLE ON 06/20/2023
06/15/23 INTEREST RECEIVED 14.77
HONDA AUTO RECEIVABL 0.820% 7/15/24
CUSIP 43813DAC2
$0.00008/PV ON 21,609.87 PV
DUE 6/15/23
06/15/23 6,046.83- PAID DOWN 6,046.83 6,046.35- 0.48
HONDA AUTO RECEIVABL 0.820% 7/15/24
CUSIP 43813DAC2
06/21/23 INTEREST RECEIVED 337.33
HONDA AUTO RECEIVABL 0.880% 1/21/26
CUSIP 43815GAC3
$0.00073/PV ON 460,000.00 PV
DUE 6/21/23
627
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627 of 674
PAGE 26

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/15/23 INTEREST RECEIVED 1,159.33
HONDA AUTO RECEIVABL 1.000% 5/15/26
CUSIP 43815BAC4
$0.00157/PV ON 740,000.00 PV
DUE 6/15/23
06/15/23 INTEREST RECEIVED 93.16
HYUNDAI AUTO LEASE 0.330% 6/17/24
CUSIP 44891VAC5
$0.00012/PV ON 338,772.61 PV
DUE 6/15/23
06/15/23 99,190.99- PAID DOWN 99,190.99 99,176.11- 14.88 HYUNDAI AUTO LEASE 0.330% 6/17/24
CUSIP 44891VAC5
06/15/23 INTEREST RECEIVED 522.00
HYUNDAI AUTO LEASE 1.160% 1/15/25
CUSIP 44891WAC3
$0.00097/PV ON 540,000.00 PV
DUE 6/15/23
06/15/23 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 6/15/23
06/15/23 INTEREST RECEIVED 105.56
HYUNDAI AUTO RECEIVA 0.380% 9/15/25
CUSIP 44933LAC7
$0.00020/PV ON 333,348.94 PV
DUE 6/15/23
06/15/23 28,525.05- PAID DOWN 28,525.05 28,522.05- 3.00 HYUNDAI AUTO RECEIVA 0.380% 9/15/25
CUSIP 44933LAC7
628
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628 of 674
PAGE 27

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/15/23 INTEREST RECEIVED 820.17
HYUNDAI AUTO RECEIVA 0.740% 5/15/26
CUSIP 44935FAD6
$0.00062/PV ON 1,330,000.00 PV
DUE 6/15/23
06/15/23 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 6/15/23
06/15/23 INTEREST RECEIVED 870.00
JOHN DEERE OWNER ABS 2.320% 9/16/26
CUSIP 47787JAC2
$0.00193/PV ON 450,000.00 PV
DUE 6/15/23
06/15/23 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 6/15/23
06/15/23 INTEREST RECEIVED 13.39
JOHN DEERE OWNER TRU 0.510% 11/15/24
CUSIP 47787NAC3
$0.00005/PV ON 31,500.09 PV
DUE 6/15/23
06/15/23 7,487.24- PAID DOWN 7,487.24 7,486.10- 1.14
JOHN DEERE OWNER TRU 0.510% 11/15/24
CUSIP 47787NAC3
06/15/23 INTEREST RECEIVED 230.58
JOHN DEERE OWNER TRU 0.520% 3/16/26
CUSIP 47789QAC4
$0.00040/PV ON 532,107.31 PV
DUE 6/15/23
629
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629 of 674
PAGE 28

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/15/23 30,188.24- PAID DOWN 30,188.24 30,185.55- 2.69 JOHN DEERE OWNER TRU 0.520% 3/16/26
CUSIP 47789QAC4
06/15/23 INTEREST RECEIVED 8.76
JOHN DEERE OWNER TRU 1.100% 8/15/24
CUSIP 47789KAC7
$0.00003/PV ON 9,551.14 PV
DUE 6/15/23
06/15/23 7,551.29- PAID DOWN 7,551.29 7,550.83- 0.46
JOHN DEERE OWNER TRU 1.100% 8/15/24
CUSIP 47789KAC7
06/12/23 INTEREST RECEIVED 6,125.00
P/P GUARDIAN LIFE GL 0.875% 12/10/25
CUSIP 40139LBC6
INTEREST ON 1,400,000.000 UNITS
06/06/23 INTEREST RECEIVED 5,088.75
P/P PRICOA GLOBAL FU 1.150% 12/06/24
CUSIP 74153WCQ0
INTEREST ON 885,000.000 UNITS
06/12/23 INTEREST RECEIVED 19,875.00
TORONTO-DOMINION BAN 2.650% 6/12/24
CUSIP 89114QCA4
INTEREST ON 1,500,000.000 UNITS
06/15/23 INTEREST RECEIVED 106.12
TOYOTA AUTO RECEIVAB 0.260% 5/15/25
CUSIP 89240BAC2
$0.00010/PV ON 489,800.99 PV
DUE 6/15/23
630
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630 of 674
PAGE 29

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/15/23 49,938.26- PAID DOWN 49,938.26 49,928.99- 9.27 TOYOTA AUTO RECEIVAB 0.260% 5/15/25
CUSIP 89240BAC2
06/15/23 INTEREST RECEIVED 32.36
TOYOTA AUTO RECEIVAB 0.350% 1/15/25
CUSIP 89236XAC0
$0.00007/PV ON 110,948.03 PV
DUE 6/15/23
06/15/23 19,883.72- PAID DOWN 19,883.72 19,880.02- 3.70 TOYOTA AUTO RECEIVAB 0.350% 1/15/25
CUSIP 89236XAC0
06/15/23 INTEREST RECEIVED 254.42
TOYOTA AUTO RECEIVAB 0.710% 4/15/26
CUSIP 89238JAC9
$0.00059/PV ON 430,000.00 PV
DUE 6/15/23
06/20/23 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 6/20/23
06/20/23 INTEREST RECEIVED 56.29
TOYOTA LEASE OWNER 0.390% 4/22/24
CUSIP 89238EAC0
$0.00008/PV ON 173,196.70 PV
DUE 6/20/23
06/20/23 82,028.71- PAID DOWN 82,028.71 80,388.13- 1,640.58 TOYOTA LEASE OWNER 0.390% 4/22/24
CUSIP 89238EAC0
631
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631 of 674
PAGE 30

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/20/23 INTEREST RECEIVED 7,790.63
TOYOTA MOTOR CREDIT 1.125% 6/18/26
CUSIP 89236TJK2
INTEREST ON 1,385,000.000 UNITS
06/30/23 INTEREST RECEIVED 52,812.50
U.S. TREASURY NOTES 3.250% 6/30/27
CUSIP 91282CEW7
INTEREST ON 3,250,000.000 UNITS
06/30/23 INTEREST RECEIVED 53,281.25
U.S. TREASURY NOTES 3.875% 12/31/27
CUSIP 91282CGC9
INTEREST ON 2,750,000.000 UNITS
06/30/23 INTEREST RECEIVED 18,375.00
US TREASURY NOTE 1.750% 12/31/24
CUSIP 912828YY0
INTEREST ON 2,100,000.000 UNITS
06/30/23 INTEREST RECEIVED 20,000.00
US TREASURY NOTE 2.000% 6/30/24
CUSIP 912828XX3
INTEREST ON 2,000,000.000 UNITS
06/20/23 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 6/20/23
06/20/23 INTEREST RECEIVED 61.47
VERIZON OWNER TRUST 0.470% 2/20/25
CUSIP 92290BAA9
$0.00008/PV ON 156,953.55 PV
DUE 6/20/23
632
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632 of 674
PAGE 31

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/20/23 46,739.61- PAID DOWN 46,739.61 46,729.79- 9.82 VERIZON OWNER TRUST 0.470% 2/20/25
CUSIP 92290BAA9
06/20/23 INTEREST RECEIVED 4,616.50
VR BANK OF AMERICA 1.319% 6/19/26
CUSIP 06051GJD2
INTEREST ON 700,000.000 UNITS
06/26/23 INTEREST RECEIVED 2,639.42
VR FHLMC MULTIFAMI 3.334% 8/25/25
CUSIP 3137BLW95
$0.00278/PV ON 950,000.00 PV
DUE 6/25/23
06/01/23 INTEREST RECEIVED 5,644.40
VR JPMORGAN CHASE & 0.824% 6/01/25
CUSIP 46647PCH7
INTEREST ON 1,370,000.000 UNITS
06/23/23 INTEREST RECEIVED 3,173.48
VR JPMORGAN CHASE & 0.969% 6/23/25
CUSIP 46647PCK0
INTEREST ON 655,000.000 UNITS

TRANSFER RECEIPTS
06/01/23 ADDITION TO ACCOUNT 8,412.49

TRANSFER FROM INCOME
06/05/23 ADDITION TO ACCOUNT 1,068.75

TRANSFER FROM INCOME
06/06/23 ADDITION TO ACCOUNT 5,088.75

TRANSFER FROM INCOME
633
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633 of 674
PAGE 32

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ 06/12/23 ADDITION TO ACCOUNT 26,000.00

TRANSFER FROM INCOME
06/14/23 ADDITION TO ACCOUNT 21,562.50

TRANSFER FROM INCOME
06/15/23 ADDITION TO ACCOUNT 19,324.05

TRANSFER FROM INCOME
06/16/23 ADDITION TO ACCOUNT 1,515.58

TRANSFER FROM INCOME
06/20/23 ADDITION TO ACCOUNT 19,575.17

TRANSFER FROM INCOME
06/21/23 ADDITION TO ACCOUNT 4,983.84

TRANSFER FROM INCOME
06/23/23 ADDITION TO ACCOUNT 3,173.48

TRANSFER FROM INCOME
06/26/23 ADDITION TO ACCOUNT 17,217.84

TRANSFER FROM INCOME
06/30/23 ADDITION TO ACCOUNT 124,468.75

TRANSFER FROM INCOME

INVESTMENT MANAGEMENT EXPENSES
06/06/23 INVESTMENT MGMT FEE 9,168.78-

PAID TO CHANDLER ASSET MANAGEMENT INC

CHANDLER ASSET MGMT FEE INV
2305CUPERTIN
634
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634 of 674
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 33

STATEMENT OF TRANSACTIONS CITY OF CUPERTINO
FOR THE PERIOD JUNE 1, 2023 THROUGH JUNE 30, 2023 ACCOUNT NUMBER ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯

STATEMENT OF TRANSACTIONS

REALIZED

DATE PAR VALUE/SHARES DESCRIPTION CASH COST VALUE GAIN/LOSS ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯

TRANSFER DISBURSEMENTS
06/01/23 TRANSFER TO PRINCIPAL 8,412.49-
06/05/23 TRANSFER TO PRINCIPAL 1,068.75-
06/06/23 TRANSFER TO PRINCIPAL 5,088.75-
06/12/23 TRANSFER TO PRINCIPAL 26,000.00-
06/14/23 TRANSFER TO PRINCIPAL 21,562.50-
06/15/23 TRANSFER TO PRINCIPAL 19,324.05-
06/16/23 TRANSFER TO PRINCIPAL 1,515.58-
06/20/23 TRANSFER TO PRINCIPAL 19,575.17-
06/21/23 TRANSFER TO PRINCIPAL 4,983.84-
06/23/23 TRANSFER TO PRINCIPAL 3,173.48-
06/26/23 TRANSFER TO PRINCIPAL 17,217.84-
06/30/23 TRANSFER TO PRINCIPAL 124,468.75-
================================================================================================================= ENDING BALANCE 20,000.00 157,118,848.64
¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
635
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CITY OF CUPERTINO
PARS Post-Employment Benefits Trust 6/1/2023 to 6/30/2023 Kristina Alfaro
Director of Administrative Services
City of Cupertino
10300 Torre Ave.

Cupertino, CA 95014
Account Summary
Source 6/1/2023 Contributions Earnings Expenses Distributions Transfers 6/30/2023 OPEB 1001 $33,223,791.44 $0.00 $1,494,014.92 $9,799.99 $0.00 $0.00 $34,708,006.37 PENSION 1002 $18,272,565.03 $0.00 $821,684.19 $5,389.83 $0.00 $0.00 $19,088,859.39 Totals $51,496,356.47 $0.00 $2,315,699.11 $15,189.82 $0.00 $0.00 $53,796,865.76 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 4.50% 4.23% 11.14% 6.09% 4.72% 5.77% 6/21/2010
PENSION 4.50% 4.23% 11.12% 6.05% - - 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 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
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
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7/3/23, 10:56 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
July 03, 2023
LAIF Home
PMIA Average Monthly
Yields

CITY OF CUPERTINO

FINANCE MANAGER
10300 TORRE AVENUE
CUPERTINO, CA 95014
Account Number:

June 2023 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 21,425,003.72
Total Withdrawal 0 00 Ending Balance 21,425,003.72
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CITY OF CUPERTINO
Agenda Item
22-11734 Agenda Date: 9/6/2023
Agenda #: 12.

Subject: Receive the Monthly Treasurer's Report for July 2023 Receive the Monthly Treasurer's Report for July 2023
CITY OF CUPERTINO Page 1 of 1 Printed on 8/29/2023
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1 CITY COUNCIL STAFF REPORT
Meeting: September 6, 2023
Subject
Receive the Monthly Treasurer's Report for July 2023
Recommended Action
Receive the Monthly Treasurer's Report for July 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.

Per the referenced code provisions, a Treasurer's Report (report and accounting of all receipts, disbursements, and fund balances) shall be submitted to the 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 July 2023. The report is as of August 8, 2023.

Receipts, Disbursements, and Cash Balance
The City's General Fund ending cash and investment balance was $138.6 million, increasing by $2.2 million from the prior month. Receipts were $8.5 million, disbursements were $(6.4) million, and journal adjustments were $41,491 for the month.

The City's total ending cash and investment balance was $238.6 million, increasing by $1.5 million from the prior month. Receipts were $9.0 million, disbursements were $(9.2) million, and journal adjustments were $1.7 million for the month.

Journal adjustments included the following:
 Parks and Recreation transactions imported from Active Network into New World
 LAIF Quarterly Interest Deposit
 City Council approved budget adjustment for Regnart Road Improvement Project
 Reversal of the City’s July UAL allocation
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3 Fund Balance/Net Position
The City's General Fund ending fund balance was $125.7 million, decreasing by $3.6 million from the prior month due to revenues of $0.6 million and expenditures of $4.2 million.

The City's total ending fund balance was $221.8 million, decreasing by $4.0 million from the prior month due to revenues of $2.3 million and expenditures of $6.3 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 July 2023 B – Report of City‐wide Fund Balances/Net Position July 2023 641
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July 2023 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments
Beginning Balance Ending Balance
Fund Type Fund Number/Name as of June 30, 2023 Receipts Disbursements Journal Adjustments as of July 31, 2023 General Fund 100 General Fund 136,424,339 8,544,526 (6,417,801) 41,491 138,592,555 General Fund 130 Investment Fund 189,996 ‐ ‐ 168,216 358,213 Special Revenue Funds 210 Storm Drain Improvement 2,148,045 ‐ (6,240) ‐ 2,141,805 Special Revenue Funds 215 Storm Drain AB1600 1,888,161 6,360 ‐ ‐ 1,894,521Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 1,193,812 12,172 (87,713) 3,965 1,122,235 Special Revenue Funds 260 CDBG 631,040 ‐ (48,324) 104 582,819Special Revenue Funds 261 HCD Loan Rehab 222,300 ‐ ‐ ‐ 222,300 Special Revenue Funds 265 BMR Housing 5,294,955 ‐ (81,867) 831 5,213,919 Special Revenue Funds 270 Transportation Fund 11,354,739 254,656 (1,092,317) 8,164 10,525,242 Special Revenue Funds 271 Traffic Impact 769,449 ‐ ‐ ‐ 769,449 Special Revenue Funds 280 Park Dedication 18,776,897 ‐ (4,816) ‐ 18,772,081 Special Revenue Funds 281 Tree Fund 77,553 1,443 ‐ ‐ 78,996Debt Service Funds 365 Public Facilities Corp 6,850 ‐ ‐ ‐ 6,850 Capital Project Funds 420 Capital Improvement Fund 24,533,260 ‐ (261,703) 876,766 25,148,322 Capital Project Funds 427 Stevens Creek Corridor Park 158,146 ‐ ‐ ‐ 158,146 Capital Project Funds 429 Capital Reserve* 13,953,210 ‐ ‐ ‐ 13,953,210 Enterprise Funds 520 Resource Recovery 5,353,124 222,326 (139,402) 3,415 5,439,462Enterprise Funds 560 Blackberry Farm 867,870 ‐ (38,455) 75,587 905,002Enterprise Funds 570 Sports Center 1,629,942 ‐ (295,090) 268,832 1,603,685Enterprise Funds 580 Recreation Program 3,468,473 ‐ (167,668) 247,115 3,547,920Internal Service Funds 610 Innovation & Technology 3,414,564 ‐ (205,801) 11,627 3,220,390Internal Service Funds 620 Workersʹ Compensation 3,888,036 ‐ (155,070) 256 3,733,223 Internal Service Funds 630 Vehicle/Equip Replacement 1,463,749 ‐ (110,186) 2,719 1,356,281Internal Service Funds 641 Compensated Absence/LTD 724,995 ‐ 189 ‐ 725,184 Internal Service Funds 642 Retiree Medical (1,369,103) ‐ (112,105) ‐ (1,481,208) Total $ 237,064,402 $ 9,041,483 $ (9,224,370) $ 1,709,086 $ 238,590,601 * For reporting purposes, this fund rolls up/combines with Fund 420Printed August 08, 2023For more information on funds, please see cupertino.org/fund‐structure 642
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July 2023 Report of City‐wide Fund Balances/Net Position Beginning Fund Balance Ending Fund Balance
Fund Type Fund Number/Name as of June 30, 2023 Revenues Expenditures as of July 31, 2023 General Fund 100 General Fund 129,318,250 574,945 4,219,243 125,673,952 General Fund 130 Investment Fund 229,425 ‐ ‐ 229,425
Special Revenue Funds 210 Storm Drain Improvement 2,140,100 ‐ ‐ 2,140,100 Special Revenue Funds 215 Storm Drain AB1600 1,872,123 6,360 ‐ 1,878,483 Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 855,531 49,890 195,209 710,211 Special Revenue Funds 260 CDBG 1,143,163 ‐ 1,173 1,141,991 Special Revenue Funds 261 HCD Loan Rehab 222,300 ‐ ‐ 222,300 Special Revenue Funds 265 BMR Housing 5,308,215 ‐ 9,381 5,298,835 Special Revenue Funds 270 Transportation Fund 11,445,366 ‐ 110,384 11,334,982 Special Revenue Funds 271 Traffic Impact 766,576 ‐ ‐ 766,576 Special Revenue Funds 280 Park Dedication 18,678,878 ‐ ‐ 18,678,878 Special Revenue Funds 281 Tree Fund 76,299 1,443 ‐ 77,742 Debt Service Funds 365 Public Facilities Corp 2,322,250 ‐ ‐ 2,322,250 Capital Project Funds 420 Capital Improvement Fund 21,579,164 876,766 98,688 22,357,242 Capital Project Funds 427 Stevens Creek Corridor Park 158,146 ‐ ‐ 158,146 Capital Project Funds 429 Capital Reserve* 13,953,210 ‐ 876,766 13,076,444 Enterprise Funds 520 Resource Recovery 4,598,417 ‐ 43,914 4,554,503 Enterprise Funds 560 Blackberry Farm 578,902 67,352 19,930 626,324 Enterprise Funds 570 Sports Center 1,978,606 319,178 232,225 2,065,559 Enterprise Funds 580 Recreation Program 2,906,858 371,189 91,024 3,187,023Internal Service Funds 610 Innovation & Technology 1,809,410 ‐ 152,551 1,656,859 Internal Service Funds 620 Workersʹ Compensation 2,184,612 ‐ 154,814 2,029,799 Internal Service Funds 630 Vehicle/Equip Replacement 2,169,528 ‐ 59,716 2,109,812Internal Service Funds 641 Compensated Absence/LTD 790,565 8,331 8,142 790,754 Internal Service Funds 642 Retiree Medical (1,250,810) ‐ ‐ (1,250,810) Total $ 225,835,084 $ 2,275,454 $ 6,273,160 $ 221,837,379 * For reporting purposes, this fund rolls up/combines with Fund 420 Printed August 08, 2023For more information on funds, please see cupertino.org/fund‐structure 643
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CITY OF CUPERTINO
Agenda Item
23-12373 Agenda Date: 9/6/2023
Agenda #: 13.

Subject: Receive the Monthly Treasurer's Investment Report for July 2023 Receive the Monthly Treasurer's Investment Report for July 2023 CITY OF CUPERTINO Page 1 of 1 Printed on 8/29/2023
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CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com

INVESTMENT REPORT
Period Ending July 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 July 31, 2023
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SECTION | Section 1 | Economic Update
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Economic Update



Recent economic data continues to suggest 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. Inflationary trends are subsiding, but core levels remain well above the Fed’s target. Given the cumulative effects of restrictive monetary policy and tighter financial conditions, we believe the economy will gradually soften and the Fed will remain data dependent as they tread cautiously going forward.

As anticipated at the July meeting, the Federal Open Market Committee voted unanimously to raise the Federal Funds rate by 0.25% to a target range of 5.25 - 5.50%, the highest level in over 20 years. Fed Chair Powell maintained that the FOMC will remain data dependent going forward, and that they do not anticipate a recession, leaving the option open for the possibility of additional rate hikes in the future if needed.

The yield curve remained inverted in June. The 2-year Treasury yield surged 50 basis points to 4.90%, the 5-year Treasury yield rose 40 basis points to 4.16%, and the 10-year Treasury yield increased 19 basis points to 3.84%. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -106 basis points at June month-end versus -76 basis points at May month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was +6 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -146 basis points in June from -176 basis points in May. The shape of the yield curve indicates that the probability of recession is increasing.
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Employment
-400
-200
0 200
400
600
800
1,000 MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added 209,000 jobs in June, falling short of consensus expectations, and the last two months were revised downward by 110,000 jobs. Although decelerating, the pace of job growth remains healthy with the three-month moving average payrolls at 244,000 and the six-month moving average at 278,000. The unemployment rate declined to 3.6% in June from 3.7% in May, while the labor force participation rate remained at 62.6%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, increased to 6.9% from the prior month at 6.7%. Average hourly earnings remained at 4.4% year-over-year in June, unchanged from an upwardly revised 4.4% increase in May. While the longer-term trend of hiring is slowing, levels remain consistent with a solid labor market.

Source: US Department of Labor Source: US Department of Labor 4 649
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Inflation

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

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
Fed Target
YOY (%) Change
The Consumer Price Index (CPI) increased in June by 0.2% month-over-month and 3.0% year-over-year, down from 4.0% in May. The Core CPI, which excludes volatile food and energy components, was up 0.2% month-over-month and 4.8% year-over-year, decelerating modestly from 5.3% in May. The Personal Consumption Expenditures (PCE) index rose 3.0% year-over-year in June, down from a 3.8% gain in May. Core PCE, the Federal Reserve’s preferred inflation gauge, increased 4.1% year-over-year in June, down from a 4.6% increase in May. Core inflation is decelerating but remains above the Fed's 2% target.

Source: US Department of Labor Source: US Department of Commerce 5 650
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Federal Reserve
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
As anticipated at the July meeting, the Federal Open Market Committee voted unanimously to raise the Federal Funds rate by 0.25% to a target range of 5.25 - 5.50%, the highest level in over 20 years. Fed Chair Powell maintained that the FOMC will remain data dependent going forward, and that they do not anticipate a recession, leaving the option open for the possibility of additional rate hikes in the future if needed. The Fed continued to focus on achieving price stability and bringing inflation down toward their 2% policy objective. We believe the resiliency of future economic data will determine if the Federal Reserve can stay on hold for a period of time or will tighten policy further to curb inflation.

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
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Bond Yields
Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Yield Curve
Jun-23
Mar-23
Jun-22
Yield (%)
At the end of June, the 2-year Treasury yield was 194 basis points higher, and the 10-Year Treasury yield was about 82 basis points higher, year-over-year. The inversion between the 2-year Treasury yield and 10-year Treasury yield widened to -106 basis points at June month-end versus -76 basis points at May month-end. The average historical spread (since 2003) is about +130 basis points. The inversion between 3-month and 10-year Treasuries narrowed to -146 basis points in June from -176 basis points in May. The shape of the yield curve indicates that the probability of recession is increasing. 7 652
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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 July 31, 2023
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Compliance As of July 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" short-term 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 statelicensed 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 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 City of Cupertino
Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. 10 655
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Compliance As of July 31, 2023
Category Standard Comment
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. 11 656
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Portfolio Summary – City of Cupertino #10659 As of July 31, 2023 12 657
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Purchase Yield as of 07/31/23 = 1.98%

0.00 0.50

1.00 1.50

2.00 2.50
Percent (%)
Historical Average Purchase Yield
City of Cupertino
As of July 31, 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 36.24%
Federal National Mortgage Association Agency 8.80%
Federal Home Loan Mortgage Corp Agency 4.35%
Federal Home Loan Mortgage Corp CMO 3.79%
Inter-American Dev Bank Supranational 3.33%
Federal Home Loan Bank Agency 2.30%
American Express ABS ABS 1.87%
John Deere ABS ABS 1.73%
Hyundai Auto Receivables ABS 1.67%
Royal Bank of Canada Corporate 1.66%
Toyota Motor Corp Corporate 1.60%
Bank of America Corp Corporate 1.55%
JP Morgan Chase & Co Corporate 1.55%
Bank of New York Corporate 1.54%
International Finance Corp Supranational 1.53%
Intl Bank Recon and Development Supranational 1.46%
Toronto Dominion Holdings Corporate 1.42%
Northwestern Mutual Glbl Corporate 1.27%
Paccar Financial Corporate 1.25%
Bank of Montreal Chicago Corporate 1.16%
Amazon.com Inc Corporate 1.13%
Salesforce.com Inc Corporate 1.12%
Metlife Inc Corporate 1.12%
Prudential Financial Inc Corporate 1.10%
Air Products & Chemicals Corporate 1.10%
United Health Group Inc Corporate 1.07%
New York Life Global Funding Corporate 1.06%
Berkshire Hathaway Corporate 1.01%
GM Financial Automobile Leasing Trust ABS 0.96%
Honda ABS ABS 0.91%
Guardian Life Global Funding Corporate 0.84%
US Bancorp Corporate 0.81%
Toyota Lease Owner Trust ABS 0.76%
Caterpillar Inc Corporate 0.71%
GM Financial Securitized Term Auto Trust ABS 0.66%
MasterCard Inc Corporate 0.65%
Mass Mutual Insurance Corporate 0.59%
Charles Schwab Corp/The Corporate 0.59%
Issuers
City of Cupertino – Account #10659
As of July 31, 2023
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Issue Name Investment Type % Portfolio
Toyota ABS ABS 0.58%
State of California Municipal Bonds 0.49%
Hyundai Auto Lease Securitization ABS 0.45%
Northern Trust Corp Corporate 0.44%
Morgan Stanley Corporate 0.41%
Verizon Master Trust ABS 0.38%
BMW ABS ABS 0.35%
BMW Vehicle Lease Trust ABS 0.31%
Wal-Mart Stores Corporate 0.21%
Wells Fargo 100% Treasury MMKT Fund Money Market Fund 0.09% Verizon Owner Trust ABS 0.05%
TOTAL 100.00%
Issuers
City of Cupertino – Account #10659
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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
12,679.25 03/23/2022

2.16%
12,425.66
12,655.94

99.80 4.43%
12,653.98

1.51 0.01%
(1.96)
Aaa / AAA
NR

0.73 0.05
44891VAC5 Hyundai Auto Lease Trust 2021-B A3

0.330% Due 06/17/2024
144,543.33 06/08/2021

0.34%
144,521.65
144,542.14

99.70 4.84%
144,110.86

21.20 0.10%
(431.28)
Aaa / AAA
NR

0.88 0.07
43813DAC2 Honda Auto Receivables 2020-2 A3

0.820% Due 07/15/2024
9,649.21 05/18/2020

0.83%
9,648.45
9,649.03

99.66 5.55%
9,616.37

3.52 0.01%
(32.66)
Aaa / AAA
NR

0.96 0.07
43813KAC6 Honda Auto Receivables Trust 2020-3 A3

0.370% Due 10/18/2024
110,189.27 09/22/2020

0.38%
110,173.08
110,187.73

98.79 5.87%
108,858.96

14.72 0.07%
(1,328.77)

NR / AAA
AAA

1.22 0.22
36262XAC8 GM Financial Auto Lease Trust 2021-3 A2

0.390% Due 10/21/2024
512,709.49 08/10/2021

0.39%
512,702.52
512,708.14

98.86 5.68%
506,865.63

61.10 0.34%
(5,842.51)

NR / AAA
AAA

1.23 0.21
47787NAC3 John Deere Owner Trust 2020-B A3

0.510% Due 11/15/2024
18,243.00 07/14/2020

0.52%
18,240.22
18,242.64

99.44 5.09%
18,141.57

4.14 0.01%
(101.07)
Aaa / NR
AAA

1.30 0.12
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3

0.330% Due 12/26/2024
152,085.48 09/08/2021

0.34%
152,069.77
152,082.72

99.03 5.61%
150,609.80

8.36 0.10%
(1,472.92)
Aaa / NR
AAA

1.41 0.18
89236XAC0 Toyota Auto Receivables 2020-D A3

0.350% Due 01/15/2025
72,990.94 10/06/2020

0.36%
72,977.34
72,986.28

99.10 5.75%
72,335.78

11.35 0.05%
(650.50)

NR / AAA
AAA

1.46 0.16
44891WAC3 Hyundai Auto Lease Trust 2022-A A3

1.160% Due 01/15/2025
534,669.44 01/11/2022

1.16%
534,657.63
534,665.71

98.57 5.74%
527,010.30
275.65

0.35%
(7,655.41)
Aaa / AAA
NR

1.46 0.31
92290BAA9 Verizon Owner Trust 2020-B A

0.470% Due 02/20/2025
69,872.27 08/04/2020

0.48%
69,857.59
69,867.22

99.47 5.13%
69,504.11

10.03 0.05%
(363.11)
Aaa / NR
AAA

1.56 0.11
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
1,149,930.43

98.13 5.93%
1,128,477.75
688.72

0.75%
(21,452.68)

NR / AAA
AAA

1.56 0.47
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
944,997.28

98.41 5.79%
929,932.92
548.63

0.62%
(15,064.36)
Aaa / NR
AAA

1.64 0.41
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3

1.100% Due 03/25/2025
324,637.96 01/11/2022

1.11%
324,589.44
324,623.51

98.49 5.71%
319,750.21

59.52 0.21%
(4,873.30)

NR / AAA
AAA

1.65 0.32
43813GAC5 Honda Auto Receivables Trust 2021-1 A3

0.270% Due 04/21/2025
106,385.05 02/17/2021

0.27%
106,383.11
106,384.65

97.95 5.74%
104,200.43

7.98 0.07%
(2,184.22)
Aaa / NR
AAA

1.73 0.37
89240BAC2 Toyota Auto Receivables Owners 2021-A A3

0.260% Due 05/15/2025
392,571.00 02/02/2021

0.27%
392,498.15
392,556.38

98.04 5.69%
384,858.95

45.36 0.26%
(7,697.43)
Aaa / NR
AAA

1.79 0.36
44933LAC7 Hyundai Auto Receivables Trust 2021-A A3

0.380% Due 09/15/2025
276,704.96 04/20/2021

0.38%
276,675.85
276,697.43

97.55 5.94%
269,928.74

46.73 0.18%
(6,768.69)

NR / AAA
AAA

2.13 0.44
43815GAC3 Honda Auto Receivables Trust 2021-4 A3

0.880% Due 01/21/2026
448,455.07 11/16/2021

0.89%
448,360.53
448,409.60

96.34 5.78%
432,022.33
109.62

0.29%
(16,387.27)
Aaa / NR
AAA

2.48 0.75
As of July 31, 2023
17 662
CC 09-06-2023
662 of 674
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
47789QAC4 John Deere Owner Trust 2021-B A3

0.520% Due 03/16/2026
479,665.46 07/13/2021

0.52%
479,622.67
479,646.46

96.03 6.04%
460,630.42
110.86

0.31%
(19,016.04)
Aaa / NR
AAA

2.63 0.72
89238JAC9 Toyota Auto Receivables Trust 2021-D A3

0.710% Due 04/15/2026
420,135.52 11/09/2021

0.71%
420,126.57
420,131.27

96.19 5.87%
404,122.05
132.58

0.27%
(16,009.22)

NR / AAA
AAA

2.71 0.74
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
739,938.25

95.90 5.78%
709,663.71
618.31

0.47%
(30,274.54)
Aaa / AAA
NR

2.79 1.06
44935FAD6 Hyundai Auto Receivables Trust 2021-C A3

0.740% Due 05/15/2026
1,300,532.02 Various

2.03%
1,267,648.75
1,283,519.76

96.37 5.85%
1,253,294.09
427.73

0.84%
(30,225.67)

NR / AAA
AAA

2.79 0.71
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
529,983.13

97.48 5.62%
516,663.08
283.55

0.35%
(13,320.05)
Aaa / AAA
NR

3.07 1.06
362554AC1 GM Financial Securitized Term 2021-4 A3

0.680% Due 09/16/2026
338,171.03 10/13/2021

0.68%
338,162.41
338,166.91

95.88 5.90%
324,249.54

95.82 0.22%
(13,917.37)
Aaa / AAA
NR

3.13 0.79
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
449,939.61

96.55 5.82%
434,479.50
464.00

0.29%
(15,460.11)
Aaa / NR
AAA

3.13 0.99
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
1,009,977.60

96.42 5.58%
973,796.56
996.53

0.65%
(36,181.04)

NR / AAA
AAA

3.21 1.08
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
294,986.18

95.78 5.92%
282,550.12
154.88

0.19%
(12,436.06)

NR / AAA
AAA

3.30 0.91
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
389,949.41

97.06 5.60%
378,531.27
503.75

0.25%
(11,418.14)
Aaa / AAA
NR

3.55 1.19
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
654,955.51

97.30 5.73%
637,290.77
1,088.76

0.43%
(17,664.74)
Aaa / NR
AAA

3.55 1.39
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
1,533,769.29

95.02 5.49%
1,468,029.65
1,517.53

0.98%
(65,739.64)
Aaa / NR
AAA

3.62 1.55
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
1,374,817.29

96.77 5.35%
1,330,549.00
2,071.67

0.89%
(44,268.29)

NR / AAA
AAA

3.80 1.69
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
1,049,935.98

99.17 5.65%
1,041,331.20
2,375.33

0.70%
(8,604.78)
Aaa / NR
AAA

3.88 1.63
92348KAV5 Verizon Master Trust 2022-5 A1A

3.720% Due 07/20/2027
570,000.00 08/02/2022

3.75%
569,974.92
569,983.71

99.05 5.09%
564,559.35
647.90

0.38%
(5,424.36)

NR / AAA
AAA

3.97 1.02
TOTAL ABS 16,429,889.75 2.22%
16,374,654.33
16,400,887.19 5.67%
15,968,619.00
13,407.34

10.67%
(432,268.19)
Aaa / AAA
AAA

2.79 0.93
Agency
3137EAFA2 FHLMC Note

0.250% Due 12/04/2023
855,000.00 12/02/2020

0.28%
854,153.55
854,903.37

98.28 5.39%
840,253.82
338.44

0.56%
(14,649.55)
Aaa / AA+
AAA

0.35 0.34
As of July 31, 2023
18 663
CC 09-06-2023
663 of 674
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
3130A1XJ2 FHLB Note

2.875% Due 06/14/2024
1,500,000.00 06/18/2019

1.96%
1,564,890.20
1,511,325.51

97.83 5.46%
1,467,478.51
5,630.21

0.98%
(43,847.00)
Aaa / AA+
NR

0.87 0.84
3135G0V75 FNMA Note

1.750% Due 07/02/2024
1,500,000.00 07/16/2019

1.96%
1,484,895.00
1,497,199.07

96.68 5.50%
1,450,186.50
2,114.58

0.97%
(47,012.57)
Aaa / AA+
AAA

0.92 0.89
3130A2UW4 FHLB Note

2.875% Due 09/13/2024
2,000,000.00 09/13/2019

1.79%
2,103,380.00
2,023,181.15

97.28 5.42%
1,945,558.00
22,041.67

1.31%
(77,623.15)
Aaa / AA+
AAA

1.12 1.07
3135G0W66 FNMA Note

1.625% Due 10/15/2024
1,975,000.00 Various

1.73%
1,965,802.75
1,972,716.04

95.71 5.34%
1,890,357.43
9,449.83

1.27%
(82,358.61)
Aaa / AA+
AAA

1.21 1.16
3135G0X24 FNMA Note

1.625% Due 01/07/2025
1,295,000.00 Various

1.38%
1,309,953.95
1,299,463.63

95.12 5.20%
1,231,850.62
1,402.92

0.82%
(67,613.01)
Aaa / AA+
AAA

1.44 1.38
3137EAEP0 FHLMC Note

1.500% Due 02/12/2025
2,365,000.00 02/13/2020

1.52%
2,363,178.95
2,364,440.21

94.72 5.13%
2,240,092.53
16,653.54

1.51%
(124,347.68)
Aaa / AA+
AAA

1.54 1.47
3135G03U5 FNMA Note

0.625% Due 04/22/2025
1,860,000.00 04/22/2020

0.67%
1,856,168.40
1,858,676.59

92.70 5.10%
1,724,173.50
3,196.88

1.15%
(134,503.09)
Aaa / AA+
AAA

1.73 1.67
3135G04Z3 FNMA Note

0.500% Due 06/17/2025
2,500,000.00 Various

0.50%
2,499,227.30
2,499,788.79

92.03 5.00%
2,300,750.00
1,527.78

1.54%
(199,038.79)
Aaa / AA+
AAA

1.88 1.82
3137EAEU9 FHLMC Note

0.375% Due 07/21/2025
1,250,000.00 07/21/2020

0.48%
1,243,775.00
1,247,542.76

91.54 4.93%
1,144,221.25
130.21

0.76%
(103,321.51)
Aaa / AA+
AAA

1.98 1.92
3135G05X7 FNMA Note

0.375% Due 08/25/2025
2,500,000.00 Various

0.48%
2,487,983.75
2,494,882.82

91.18 4.91%
2,279,575.00
4,062.51

1.53%
(215,307.82)
Aaa / AA+
AAA

2.07 2.01
3137EAEX3 FHLMC Note

0.375% Due 09/23/2025
2,500,000.00 Various

0.46%
2,489,362.80
2,495,332.20

90.98 4.85%
2,274,560.00
3,333.33

1.52%
(220,772.20)
Aaa / AA+
AAA

2.15 2.08
3135G06G3 FNMA Note

0.500% Due 11/07/2025
2,500,000.00 Various

0.56%
2,492,700.00
2,496,675.75

90.76 4.86%
2,268,932.50
2,916.67

1.52%
(227,743.25)
Aaa / AA+
AAA

2.27 2.20
TOTAL Agency 24,600,000.00 1.03%
24,715,471.65
24,616,127.89 5.13%
23,057,989.66
72,798.57

15.45%
(1,558,138.23)
Aaa / AA+
AAA

1.60 1.55
CMO
3137BFE98 FHLMC K041 A2

3.171% Due 10/25/2024
1,300,000.00 07/01/2021

0.72%
1,398,414.06
1,335,552.29

97.22 5.58%
1,263,853.50
3,435.25

0.85%
(71,698.79)
Aaa / AAA
AAA

1.24 1.09
3137BLMZ8 FHLMC K049 A2

3.010% Due 07/25/2025
1,000,000.00 07/01/2021

0.87%
1,079,687.50
1,038,337.63

95.87 5.29%
958,720.00
2,508.33

0.64%
(79,617.63)

NR / NR
AAA

1.99 1.76
3137BLW95 FHLMC K050 A2

3.334% Due 08/25/2025
950,000.00 11/16/2021

1.17%
1,018,132.81
986,865.35

96.31 5.30%
914,902.32
2,639.42

0.61%
(71,963.03)

NR / NR
AAA

2.07 1.81
As of July 31, 2023
19 664
CC 09-06-2023
664 of 674
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
3137BM7C4 FHLMC K051 A2

3.308% Due 09/25/2025
440,000.00 03/15/2022

2.21%
453,079.69
447,891.31

96.19 5.26%
423,223.24
1,212.93

0.28%
(24,668.07)

NR / NR
AAA

2.16 1.89
3137BN6G4 FHLMC KO53

2.995% Due 12/25/2025
570,000.00 03/15/2022

2.29%
582,001.17
577,637.90

95.31 5.18%
543,251.04
1,422.63

0.36%
(34,386.86)

NR / NR
AAA

2.41 2.11
3137BSP72 FHLMC K058 A2

2.653% Due 08/25/2026
650,000.00 11/12/2021

1.35%
687,451.17
673,892.02

93.58 4.93%
608,249.85
1,437.04

0.41%
(65,642.17)

NR / NR
AAA

3.07 2.83
3137FBBX3 FHLMC K068 A2

3.244% Due 08/25/2027
1,000,000.00 09/28/2022

4.41%
950,664.06
959,115.25

94.16 4.84%
941,639.00
2,703.33

0.63%
(17,476.25)
Aaa / NR
NR

4.07 3.65
TOTAL CMO 5,910,000.00 1.74%
6,169,430.46
6,019,291.75 5.23%
5,653,838.95
15,358.93

3.79%
(365,452.80)
Aaa / AAA
AAA

2.35 2.09
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
1,504,966.89

97.37 5.81%
1,460,526.00
5,410.42

0.98%
(44,440.89)
A1 / A
AA0.870.83
06367TQW3 Bank of Montreal Note

0.625% Due 07/09/2024
600,000.00 02/09/2022

1.89%
582,216.00
593,060.40

95.34 5.80%
572,024.40
229.17

0.38%
(21,036.00)
A2 / AAA0.94

0.91 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
1,755,967.75

95.53 5.49%
1,681,394.88
488.88

1.12%
(74,572.87)
A2 / A+
NR

0.96 0.93
78013XZU5 Royal Bank of Canada Note

2.550% Due 07/16/2024
1,500,000.00 Various

1.99%
1,533,359.18
1,507,770.00

97.03 5.78%
1,455,429.00
1,593.76

0.97%
(52,341.00)
A1 / A
AA0.960.93
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
1,253,529.19

96.87 5.67%
1,210,821.25

83.33 0.81%
(42,707.94)
A3 / A
A

1.00 0.97
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
1,690,217.77

97.91 5.53%
1,640,014.28
155.87

1.10%
(50,203.49)
A2 / A
NR

1.00 0.97
69371RR40 Paccar Financial Corp Note

0.500% Due 08/09/2024
680,000.00 08/03/2021

0.52%
679,632.80
679,874.70

95.06 5.54%
646,417.52
1,624.44

0.43%
(33,457.18)
A1 / A+
NR

1.03 0.99
69371RQ25 Paccar Financial Corp Note

2.150% Due 08/15/2024
370,000.00 08/08/2019

2.20%
369,182.30
369,829.93

96.62 5.54%
357,484.75
3,668.14

0.24%
(12,345.18)
A1 / A+
NR

1.04 1.00
14913Q3B3 Caterpillar Finl Service Note

2.150% Due 11/08/2024
1,100,000.00 01/28/2020

1.92%
1,111,517.00
1,103,070.76

96.12 5.35%
1,057,334.30
5,452.64

0.71%
(45,736.46)
A2 / A
A+

1.28 1.22
74153WCQ0 Pricoa Global Funding Note

1.150% Due 12/06/2024
885,000.00 12/01/2021

1.19%
884,088.45
884,589.22

93.88 5.94%
830,840.66
1,554.90

0.56%
(53,748.56)
Aa3 / AAAA1.35

1.30 89114TZL9 Toronto-Dominion Bank Note

1.450% Due 01/10/2025
700,000.00 03/15/2022

2.79%
674,737.00
687,049.65

94.49 5.48%
661,399.20
592.08

0.44%
(25,650.45)
A1 / A
NR

1.45 1.39
As of July 31, 2023
20 665
CC 09-06-2023
665 of 674
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
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
1,214,211.20

94.70 5.29%
1,150,640.24
880.88

0.77%
(63,570.96)
A1 / A+
A+

1.46 1.40
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
1,679,119.29

94.26 5.62%
1,583,594.88
1,150.33

1.06%
(95,524.41)
Aaa / AA+
AAA

1.46 1.40
69371RR73 Paccar Financial Corp Note

2.850% Due 04/07/2025
885,000.00 03/31/2022

2.86%
884,769.90
884,870.88

96.10 5.30%
850,501.82
7,987.13

0.57%
(34,369.06)
A1 / A+
NR

1.69 1.60
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
1,049,779.52

96.46 5.58%
1,012,821.60
10,532.81

0.68%
(36,957.92)
A1 / A
AA1.711.61
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
1,369,889.12

96.26 5.64%
1,318,741.45
12,238.67

0.89%
(51,147.67)
A1 / A
AA1.741.64
06367WB85 Bank of Montreal Note

1.850% Due 05/01/2025
1,240,000.00 07/23/2021

0.85%
1,285,656.80
1,261,233.40

93.83 5.60%
1,163,484.56
5,735.00

0.78%
(97,748.84)
A2 / AAA1.75

1.67 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
1,370,493.65

95.65 5.97%
1,310,437.88
1,881.47

0.88%
(60,055.77)
A1 / AAA1.84

1.75 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
655,121.50

95.49 5.99%
625,456.88
669.96

0.42%
(29,664.62)
A1 / AAA1.90

1.81 66815L2J7 Northwestern Mutual Glbl Note

4.000% Due 07/01/2025
1,170,000.00 06/27/2022

4.01%
1,169,602.20
1,169,745.93

97.09 5.62%
1,135,901.52
3,900.00

0.76%
(33,844.41)
Aaa / AA+
AAA

1.92 1.81
74153WCM9 Pricoa Global Funding Note

0.800% Due 09/01/2025
904,000.00 04/06/2022

3.26%
832,972.72
860,422.88

90.50 5.70%
818,086.55
3,013.33

0.55%
(42,336.33)
Aa3 / AAAA2.09

2.00 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
1,015,621.85

97.05 5.32%
970,467.00
8,009.72

0.65%
(45,154.85)
A1 / A
AA2.302.14
40139LBC6 Guardian Life Glob Fun Note

0.875% Due 12/10/2025
1,400,000.00 Various

1.12%
1,385,860.00
1,392,019.29

89.36 5.76%
1,251,028.80
1,735.42

0.84%
(140,990.49)
Aa1 / AA+
NR

2.36 2.27
66815L2A6 Northwestern Mutual Glbl Note

0.800% Due 01/14/2026
850,000.00 12/06/2021

1.47%
827,449.50
836,496.80

89.47 5.44%
760,532.40
321.11

0.51%
(75,964.40)
Aaa / AA+
AAA

2.46 2.37
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
608,679.36

94.41 5.87%
566,485.80
5,642.00

0.38%
(42,193.56)
A1 / AAA2.54

1.46 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
407,599.49

94.04 5.75%
377,108.02
2,297.03

0.25%
(30,491.47)
A1 / AAA2.73

1.65 As of July 31, 2023
21 666
CC 09-06-2023
666 of 674
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
6174468Q5 Morgan Stanley Callable Note Cont 4/28/2025

2.188% Due 04/28/2026
650,000.00 05/23/2022

4.93%
615,699.50
626,056.62

94.09 5.79%
611,565.50
3,674.02

0.41%
(14,491.12)
A1 / AA+2.75

1.66 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
1,870,497.54

90.30 4.77%
1,693,051.88
4,114.58

1.13%
(177,445.66)
A1 / AA
AA2.782.68
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
1,028,700.01

90.53 4.82%
936,992.75
2,512.74

0.63%
(91,707.26)
A2 / A+
A

2.79 2.68
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
1,384,648.91

89.88 4.94%
1,244,846.31
1,861.09

0.83%
(139,802.60)
A1 / A+
A+

2.88 2.77
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
700,612.95

91.87 5.94%
643,067.60
1,077.18

0.43%
(57,545.35)
A1 / AAA2.89

1.81 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
1,001,346.98

88.50 5.46%
884,981.00
500.00

0.59%
(116,365.98)
Aa3 / AA+
AA+

2.96 2.83
58989V2D5 Met Tower Global Funding Note

1.250% Due 09/14/2026
770,000.00 09/07/2021

1.27%
769,291.60
769,557.73

87.61 5.64%
674,566.97
3,662.85

0.45%
(94,990.76)
Aa3 / AAAA3.13

2.97 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
349,585.93

89.60 4.66%
313,609.10
1,367.92

0.21%
(35,976.83)
Aa2 / AA
AA

3.13 3.00
59217GER6 Metlife Note

1.875% Due 01/11/2027
1,115,000.00 01/03/2022

1.90%
1,113,728.90
1,114,123.60

89.13 5.37%
993,767.17
1,161.46

0.66%
(120,356.43)
Aa3 / AAAA3.45

3.25 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
959,804.81

90.32 5.46%
867,063.36
9,669.33

0.59%
(92,741.45)
A2 / AA3.59

3.32 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
1,614,777.84

93.02 4.40%
1,502,303.69
14,032.56

1.01%
(112,474.15)
Aa2 / AA
A+

3.62 3.38
06051GHT9 Bank of America Corp Callable Note 1X 4/23/2026

3.559% Due 04/23/2027
1,150,000.00 Various

4.94%
1,114,222.54
1,121,693.05

94.92 5.59%
1,091,531.70
11,141.65

0.74%
(30,161.35)
A1 / AAA3.73

2.53 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
669,180.90

96.67 4.98%
647,657.51
6,030.00

0.44%
(21,523.39)
A2 / A+
A+

3.78 3.42
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
675,240.53

96.59 4.69%
652,011.53
5,272.50

0.44%
(23,229.00)
A2 / A+
A

3.79 3.46
As of July 31, 2023
22 667
CC 09-06-2023
667 of 674
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
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
944,156.10
101.05

4.61%
954,931.01
18,171.56

0.65%
10,774.91
Aa3 / A+
NR

4.61 3.95
TOTAL Corporate 42,705,000.00 2.08%
42,741,600.72
42,635,213.92 5.44%
40,180,922.72
171,097.93

26.95%
(2,454,291.20)
A1 / A+
AA2.151.95
Money Market Fund
94975H270 Wells Fargo 100% Treasury Money Mkt Fund

136,431.06 Various

4.83%
136,431.06
136,431.06

1.00 4.83%
136,431.06

0.00 0.09%

0.00 Aaa / AAA
NR

0.00 0.00
TOTAL Money Market Fund 136,431.06 4.83%
136,431.06
136,431.06 4.83%
136,431.06

0.00 0.09%

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
759,104.87

96.52 5.51%
728,753.18
6,040.00

0.49%
(30,351.69)
Aa2 / AAAA1.17

1.12 TOTAL Municipal Bonds 755,000.00 1.91%
772,342.35
759,104.87 5.51%
728,753.18
6,040.00

0.49%
(30,351.69)
Aa2 / AAAA1.17

1.12 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
2,799,053.13

98.51 5.50%
2,758,207.20
1,477.78

1.84%
(40,845.93)
Aaa / AAA
NR

0.29 0.28
45950KCT5 International Finance Corp Note

0.375% Due 07/16/2025
2,500,000.00 05/27/2021

0.66%
2,471,150.00
2,486,302.95

91.58 4.94%
2,289,532.50
390.63

1.53%
(196,770.45)
Aaa / AAA
NR

1.96 1.91
459058JL8 Intl. Bank Recon & Development Note

0.500% Due 10/28/2025
2,400,000.00 Various

0.60%
2,388,859.25
2,394,685.39

90.89 4.84%
2,181,352.81
3,100.00

1.46%
(213,332.58)
Aaa / AAA
AAA

2.25 2.18
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
2,453,872.98

90.41 4.67%
2,223,987.60
6,038.96

1.49%
(229,885.38)
Aaa / AAA
AAA

2.72 2.62
TOTAL Supranational 10,160,000.00 0.64%
10,101,042.45
10,133,914.45 5.01%
9,453,080.11
11,007.37

6.32%
(680,834.34)
Aaa / AAA
AAA

1.72 1.66
US Treasury
912796YT0 US Treasury Bill

4.888% Due 11/02/2023
1,500,000.00 05/08/2023

5.08%
1,463,954.69
1,481,060.94

98.74 5.08%
1,481,060.94

0.00 0.99%

0.00 P-1 / A-1+
F-1+

0.26 0.25
912796ZN2 US Treasury Bill

5.228% Due 12/28/2023
1,500,000.00 06/28/2023

5.44%
1,460,358.13
1,467,545.94

97.84 5.44%
1,467,545.94

0.00 0.98%

0.00 P-1 / A-1+
F-1+

0.41 0.40
As of July 31, 2023
23 668
CC 09-06-2023
668 of 674
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
912828X70 US Treasury Note

2.000% Due 04/30/2024
1,700,000.00 06/10/2019

1.92%
1,705,976.56
1,700,914.06

97.53 5.40%
1,658,032.10
8,592.39

1.11%
(42,881.96)
Aaa / AA+
AAA

0.75 0.73
912828XX3 US Treasury Note

2.000% Due 06/30/2024
2,000,000.00 Various

1.80%
2,018,574.22
2,003,513.99

96.98 5.42%
1,939,610.00
3,478.27

1.30%
(63,903.99)
Aaa / AA+
AAA

0.92 0.89
912797GB7 US Treasury Bill

5.119% Due 07/11/2024
1,000,000.00 07/27/2023

5.39%
950,378.99
950,947.71

95.09 5.39%
950,947.71

0.00 0.64%

0.00 P-1 / A-1+
F-1+

0.95 0.92
912828D56 US Treasury Note

2.375% Due 08/15/2024
1,700,000.00 09/18/2019

1.71%
1,753,191.41
1,711,279.43

96.96 5.41%
1,648,401.60
18,626.04

1.11%
(62,877.83)
Aaa / AA+
AAA

1.04 1.00
912828YY0 US Treasury Note

1.750% Due 12/31/2024
2,100,000.00 03/15/2022

1.97%
2,087,203.13
2,093,507.56

95.30 5.24%
2,001,316.80
3,195.65

1.34%
(92,190.76)
Aaa / AA+
AAA

1.42 1.37
912828ZC7 US Treasury Note

1.125% Due 02/28/2025
1,500,000.00 03/18/2020

0.81%
1,523,144.53
1,507,390.37

93.98 5.13%
1,409,707.50
7,061.82

0.95%
(97,682.87)
Aaa / AA+
AAA

1.58 1.53
91282CED9 US Treasury Note

1.750% Due 03/15/2025
3,100,000.00 Various

2.23%
3,057,617.20
3,076,727.62

94.81 5.12%
2,939,187.50
20,491.16

1.98%
(137,540.12)
Aaa / AA+
AAA

1.62 1.56
912828ZL7 US Treasury Note

0.375% Due 04/30/2025
2,500,000.00 03/21/2022

2.24%
2,360,839.85
2,421,776.06

92.29 5.03%
2,307,325.00
2,369.23

1.54%
(114,451.06)
Aaa / AA+
AAA

1.75 1.70
91282CAB7 US Treasury Note

0.250% Due 07/31/2025
1,500,000.00 03/12/2021

0.72%
1,469,765.63
1,486,196.94

91.26 4.89%
1,368,867.00

10.19 0.91%
(117,329.94)
Aaa / AA+
AAA

2.00 1.95
91282CAM3 US Treasury Note

0.250% Due 09/30/2025
2,400,000.00 Various

0.56%
2,366,140.63
2,383,970.70

90.79 4.78%
2,178,938.40
2,016.40

1.46%
(205,032.30)
Aaa / AA+
AAA

2.17 2.11
91282CAT8 US Treasury Note

0.250% Due 10/31/2025
2,450,000.00 Various

0.49%
2,422,492.19
2,437,039.08

90.47 4.77%
2,216,485.60
1,547.90

1.48%
(220,553.48)
Aaa / AA+
AAA

2.25 2.19
91282CAZ4 US Treasury Note

0.375% Due 11/30/2025
2,250,000.00 03/26/2021

0.77%
2,209,658.20
2,229,864.55

90.48 4.73%
2,035,811.25
1,429.30

1.36%
(194,053.30)
Aaa / AA+
AAA

2.34 2.27
91282CBH3 US Treasury Note

0.375% Due 01/31/2026
2,500,000.00 05/27/2021

0.75%
2,456,445.31
2,476,706.27

90.00 4.66%
2,250,000.00

25.48 1.50%
(226,706.27)
Aaa / AA+
AAA

2.51 2.43
91282CBW0 US Treasury Note

0.750% Due 04/30/2026
2,500,000.00 05/27/2021

0.80%
2,493,652.34
2,496,459.01

90.22 4.57%
2,255,567.50
4,738.45

1.51%
(240,891.51)
Aaa / AA+
AAA

2.75 2.66
91282CCZ2 US Treasury Note

0.875% Due 09/30/2026
1,400,000.00 10/18/2021

1.19%
1,379,054.68
1,386,600.56

89.61 4.43%
1,254,531.60
4,116.80

0.84%
(132,068.96)
Aaa / AA+
AAA

3.17 3.05
91282CDG3 US Treasury Note

1.125% Due 10/31/2026
1,400,000.00 11/15/2021

1.25%
1,391,468.75
1,394,402.10

90.07 4.44%
1,261,038.80
3,980.30

0.84%
(133,363.30)
Aaa / AA+
AAA

3.25 3.12
91282CEW7 US Treasury Note

3.250% Due 06/30/2027
3,250,000.00 Various

3.18%
3,260,312.50
3,257,864.65

96.17 4.32%
3,125,460.00
9,184.78

2.09%
(132,404.65)
Aaa / AA+
AAA

3.92 3.62
91282CFB2 US Treasury Note

2.750% Due 07/31/2027
400,000.00 08/22/2022

3.12%
393,218.75
394,508.80

94.29 4.32%
377,172.00

29.89 0.25%
(17,336.80)
Aaa / AA+
AAA

4.00 3.73
As of July 31, 2023
24 669
CC 09-06-2023
669 of 674
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
91282CFH9 US Treasury Note

3.125% Due 08/31/2027
4,500,000.00 Various

3.28%
4,468,902.34
4,474,472.41

95.62 4.31%
4,302,949.50
58,848.51

2.91%
(171,522.91)
Aaa / AA+
AAA

4.09 3.73
91282CFM8 US Treasury Note

4.125% Due 09/30/2027
3,450,000.00 Various

4.31%
3,421,152.34
3,425,579.41

99.34 4.30%
3,427,361.10
47,826.33

2.32%
1,781.69
Aaa / AA+
AAA

4.17 3.74
91282CFZ9 US Treasury Note

3.875% Due 11/30/2027
850,000.00 12/05/2022

3.81%
852,656.25
852,308.89

98.46 4.27%
836,917.65
5,579.58

0.56%
(15,391.24)
Aaa / AA+
AAA

4.34 3.92
91282CGC9 US Treasury Note

3.875% Due 12/31/2027
2,750,000.00 Various

3.67%
2,775,107.42
2,772,524.13

98.48 4.26%
2,708,106.50
9,266.30

1.81%
(64,417.63)
Aaa / AA+
AAA

4.42 4.00
91282CGH8 US Treasury Note

3.500% Due 01/31/2028
3,000,000.00 02/07/2023

3.81%
2,957,929.69
2,961,956.22

97.00 4.24%
2,909,883.00
285.33

1.94%
(52,073.22)
Aaa / AA+
AAA

4.51 4.11
91282CGP0 US Treasury Note

4.000% Due 02/29/2028
3,700,000.00 Various

4.00%
3,699,113.28
3,699,309.51

99.10 4.22%
3,666,759.20
61,934.78

2.49%
(32,550.31)
Aaa / AA+
AAA

4.59 4.08
TOTAL US Treasury 56,900,000.00 2.50%
56,398,309.01
56,544,426.91 4.70%
53,978,984.19
274,634.88

36.24%
(2,565,442.72)
Aaa / AA+
AAA

2.76 2.57
TOTAL PORTFOLIO 157,596,320.81 1.98%
157,409,282.03
157,245,398.04 5.11%
149,158,618.87
564,345.02
100.00%
(8,086,779.17)
Aa1 / AA
AAA

2.33 1.98
TOTAL MARKET VALUE PLUS ACCRUALS 149,722,963.89
As of July 31, 2023
25 670
CC 09-06-2023
670 of 674
SECTION | Section 4 | Transactions
26 671
CC 09-06-2023
671 of 674
Transaction Ledger
City of Cupertino - Account #10659
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 05/09/2023 912796YT0 1,500,000.00 US Treasury Bill

4.888% Due: 11/02/2023

97.597 5.08% 1,463,954.69 0.00 1,463,954.69 0.00
Purchase 06/29/2023 912796ZN2 1,500,000.00 US Treasury Bill

5.228% Due: 12/28/2023

97.357 5.44% 1,460,358.13 0.00 1,460,358.13 0.00
Purchase 07/28/2023 912797GB7 1,000,000.00 US Treasury Bill

5.119% Due: 07/11/2024

95.038 5.39% 950,378.99 0.00 950,378.99 0.00
Subtotal 4,000,000.00 3,874,691.81 0.00 3,874,691.81 0.00 TOTAL ACQUISITIONS 4,000,000.00 3,874,691.81 0.00 3,874,691.81 0.00 April 30, 2023 through July 31, 2023
As of July 31, 2023
27 672
CC 09-06-2023
672 of 674
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 July 31, 2023
28 673
CC 09-06-2023
673 of 674
Benchmark Disclosures
ICE BofA 1-3 Yr US Treasury & Agency Index
The ICE BofA 1-3 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 three 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 July 31, 2023
29 674
CC 09-06-2023
674 of 674