CC 11-19-2024 Searchable Packet.pdf — Cupertino City Council, November 19, 2024 (part 4 of 4)

ACTIVE PROJECTS – SUSAN (CIP Manager) (1.0 FTE)
Project Title Description Phase, Schedule, and Status
PV Systems Design &
Installation
Design and Install photovoltaic systems at 5
City facilities.
 Phase: Design, RFQ
 Completion: April 2026
ADA Improvements This is an ongoing program funded annually to improve accessibility at all public facilities
throughout the City. (Multi-year funding)
 Phase: Ongoing
 Completion: N.A.

Undertaking improvements at Jollyman Park
BCA Implementation:

Sports Center shower
rooms renovation
Renovate Shower/Locker room facilities at
the Sports Center to address water damage
issues causing safety concerns.
 Phase: Design
 Completion: Summer 2025
Permit and construction documentation
underway for renovations to the Locker/
Shower rooms.

All Inclusive Play Area
& Adult-Assistive
Bathroom Facility
(Jollyman Park)
At Jollyman Park, Design and construct an
all-inclusive playground and an adultassistive bathroom facility adjacent to the new AIPG. (Externally Funded, in part)
 Phase: Construction
 Completion: June 2025
Construction is underway.

Lawrence-Mitty Park
and Trail Plan
Design and construct a new neighborhood
park. Located on 7.8 acres adjacent to
Saratoga Creek, near intersection of
Lawrence Expressway and Mitty Way
 Phase: Design
 Completion: Spring 2027
CEQA report (IS/MND) approved/ adopted
by Council. Design phase initiated.

Park Amenity
Improvements
Funding for various park amenities such as
benches, hydration stations, outdoor table
tennis, cornhole, shade structures, pickleball
striping, etc. (Multi-year funding).
 Phase: Design, Procurement
 Completion: Ongoing
Linda Vista DOLA hedge barrier
implementation scheduled for Spring 2025.

Jollyman Park will receive new bike racks,
trash receptables, and picnic tables. Picnic
tables for Creekside Park will be installed in
Spring 2025.

ACTIVE PROJECTS – TBD (Project Manager), projects currently reassigned to Senior Civil Engineer (below) (1.0 FTE)
Project Title Description Phase, Schedule, and Status
City Bridge
Maintenance Repairs
(BPMP)
Repair 4 bridges as recommended in the
Caltrans Bridge Report along with additional
improvements to prolong the useful life of
the bridges. The work is partially funded
(80%) through the Bridge Preventative
Maintenance Program, a federally funded
program.
 Phase: Construction
 Completion: Spring 2025
Repairs are complete at SCB at Calabazas
Creek (CC), Tantau at CC, Miller at CC. Creekadjacent work at Homestead over Stevens Creek (SC) will be completed in the Spring,
after rainy season.

Vai Avenue Outfall Repair of an outfall at Vai Avenue.  Phase: Construction  Completion: October 2024
De Anza Boulevard
Buffered Bike Lanes
Restripe De Anza Blvd to include a painted
buffered zone between the existing bike
lane and the vehicle lanes.
 Phase: Construction
 Completion: December 2024
Restriping will begin in November.

Annual Playground
Replacement
Replacement of older playground
equipment that is dated and worn. (Multiyear funding)
RFPs for Little Rancho and Canyon Oaks
playgrounds scheduled for Winter 2024/25.
611
CC 11-19-2024
611 of 784

Page 3 ends

ACTIVE PROJECTS – JASON (Senior Civil Engineer) (1.0 FTE) Project Title Description Phase, Schedule, and Status
Stevens Creek Blvd
CL IV Bikeway Phase
2A
Design and Construction of the separated
bikeway along Stevens Creek Blvd from
Wolfe Road to DeAnza Blvd. (Externally
Funded, in part)
 Phase: Bid
 Completion: Spring 2025
Phase 2A Construction will be posted for
public bid process in October. Phase 2B
Stevens Creek Blvd
CL IV Bikeway Phase
2B and Bandley
Intersection
Design and Construction of the separated
bikeway along Stevens Creek Blvd from De
Anza Blvd to US-85. This includes signal
upgrades at Bandley Drive. (Externally
Funded, in part)
 Phase: Design
 Completion: 2025-26
Design is underway; 95% complete. Grant
funding being sourced.

Tamien Innu - East
and Central
Segments
Design and construct an off-street bicycle
and pedestrian facility parallel to the I-280
HWY, from De Anza Blvd. Wolfe Road
(Central), from Wolfe Rd. to Vallco Parkway
(East) (Externally Funded)
 Phase: Design
 Completion: 2025-26
East segment will continue into Final
Documentation once Valley Water
approves the design. Design phase for
Central segment is paused while the east
segment design is finalized. The CEQA
process is complete.

McClellan Road
Bridge Replacement
Removal and replacement of the bridge on
McClellan Road near the entrance to
McClellan Ranch Preserve. (Externally
Funded)
 Phase: RFQ/RFP for Project team
 Completion: TBD
Stevens Creek Bridge
Repair
Stevens Creek Blvd Bridge over Stevens
Creek. Prepare feasibility study and PS&E to
determine and implement appropriate scour
countermeasures. (Externally Funded, in
part)
 Phase: Design
 Completion: 2025
Engineering/design is underway.

ACTIVE PROJECTS – JO ANNE (Project Manager, works in 2 PW Divisions) (0.25 FTE) Project Title Description Phase, Schedule, and Status
City Lighting LED
improvements
Implement the transition of City's streetlight
infrastructure from induction and other
fixtures to LED fixtures to meet the "Dark
Sky" Ordinance requirements and reduce
light pollution and energy cost
 Phase: Bid
 Completion: Procurement is TBD; 12-18
months installation
Public bid process is underway. Award of
Contract tentatively scheduled for
December.

Street Light
Installation - Annual
Infill
Infill of streetlights as requested by
residents. (Multi-year funding)
 Phase: Ongoing
 Completion: N.A.
612
CC 11-19-2024
612 of 784

Page 4 ends

ACTIVE PROJECTS – JIMMY (Assistant Director of Public Works) (0.0 FTE) Project Title Description Phase, Schedule, and Status
EVCS expansion -
Service Center
Design and Construction of infrastructure
for EVCS for the City’s Fleet vehicles.
 Phase: Design
 Completion: 2026
Working with PG&E and SVCE to confirm
scope of work.

BCA Implementation:

Senior Center fire
alarm system
New Fire Alarm system for the Senior
Center, and baseline specifications for other
facilities. (Externally Funded, in part)
 Phase: Design
 Completion: May 2025
Project team is working on bid
documentation.

ASSOCIATE ENGINEER –TRANSPORTATION (works in 2 PW Divisions, hiring process underway) (0.5 FTE) Project Title Description Phase, Schedule, and Status
Bollinger Road
Corridor Study
Traffic analysis, topographic and utilities
survey, and preliminary engineering of
Bollinger Road. (Externally Funded, in part)
 Phase: Analysis
 Completion: 2027
Roadway Safety
Improvements - HSIP
High Friction pavement treatment and
speed feedback signage added to seventeen
locations. (Externally Funded, in part)
 Phase: RFP and Design
 Completion: Winter 2025
School Walk Audit
Implementation
Construct infrastructure-related
improvements around schools that were
identified as part of the comprehensive
School Walk Audit study. (Externally Funded,
in part)
 Phase: Ongoing
 Completion: N.A.

More projects expected to become active in
Spring 2025.

QUEUED PROJECTS
Project Title Description Notes
Tamien Innu - West
Segment
Design and construct an off-street bicycle
and pedestrian facility parallel to the I-280
HWY, from the Don Burnett Bicycle –
Pedestrian Bridge to De Anza Blvd.

This segment is on hold until the other
segments are designed
City Hall Annex Program, plan and build facility
improvements required for interim facility
to accommodate staff while City Hall is
remodeled, as well as the long-term use of
this facility.

Design documentation is 60% complete.

Awaiting direction on City Hall project
before further action on this project.

City Hall
Improvements
Programming, Feasibility and Community
Outreach to form the basis of a renovation
strategy for the buildings.

Understanding of the overall City financial
issues and scope delineation must advance
before this project can progress.

Library Expansion
Project (landscaping
& donor wall)
Develop a design and construct a 5600 SF
addition to the existing Library building.
(Externally Funded, in part)
Grant funding ($1M) is received for
Courtyard and Landscaping scope. Staffing
required to move the project ahead. Donor
Wall repair is complete.

SV Hopper EV Parking Provide electric vehicle charging stations (EVCS) for SV Hopper (formerly VIA) fleet.

Engineering analysis complete. Cost
estimate and scoping to be finalized.
613
CC 11-19-2024
613 of 784

Page 5 ends

Upcoming projects (Unfunded):

Project FY Notes
BCA Implementation: future
projects
Ongoing Ongoing project[s] will continue to require staffing. The Building Condition Assessment Report documented the need for ~$20M worth of projects, in 2018.

Outfall Repairs FY25-26 FY25-26 proposal; Recent report shows 52 outfalls in critical need of repair.

Park Shade Structures: 5
locations included in the 5yr
CIP
FY25-26 FY25-26, as noted in the 5yr CIP program.

BBF Golf Course Irrigation &
Pond repairs: included in the
5yr CIP
FY25-26 FY25-26, as noted in the 5yr CIP program.

Memorial Park projects: AllInclusive PlaygroundFY25-26 Grant funding may be available, making a FY25-26 proposal likely.

ATP update: projects FY26-27 FY26-27 proposal. The Active Transportation Plan update will refocus prioritization of ATP projects.

Memorial Park projects:

Softball Field Lighting
FY26-27 The current system has exceeded its useful lifecycle.

Don Burnett Bridge
Architectural Lighting to LED
FY26-27 Pathway lights have been upgraded to LED, but the architectural lighting remains to be changed over.

Regnart Road Improvements,
Phase 2
FY26-27 The 2017 study identified 4 additional sites of Regnart Road in need of improvements to mitigate hillside degradation.

Bollinger Road Corridor
Construction; included in the
5yr CIP
FY28-29 FY28-29, as noted in the 5yr CIP program.

Electrification of all buildings FY28-29 The CAP calls for residents to electrify their properties. The City can lead the way by electrifying the City Facilities.

Little Rancho picnic area TBD PW/P&R had a recent request from residents, and this is indicative of future demands for unplanned projects
Pumpkin Fiesta Storm Drain
Improvements, Phase 2
FY29-30 The Storm Drain Master Plan identifies the need to upgrade additional sections of this storm drain.

City Hall project TBD Design and Construction, following programmatic development, FYTBD.

Memorial Park projects
derived from MPSP
TBD Numerous projects are possible
614
CC 11-19-2024
614 of 784

CITY OF CUPERTINO
Agenda Item
24-13489 Agenda Date:
11/19/2024 Agenda #:

15. Subject: Adopt the OPEB and Pension Trust Investment Policies A. Adopt Resolution No. 24-107 for the OPEB Trust Investment Policy; and B. Adopt Resolution No. 24-108 for the Pension Trust Investment Policy CITY OF CUPERTINO Page 1 of 1 Printed on 11/13/2024
powered by Legistar™615
CC 11-19-2024
615 of 784

CITY COUNCIL STAFF REPORT
Meeting: November 19, 2024
Subject
Adopt the OPEB and Pension Trust Investment Policies
Recommended Action
A. Adopt Resolution No. 24-XXX for the OPEB Trust Investment Policy; and B. Adopt Resolution No. 24-XXX for the Pension Trust Investment Policy Discussion
Background
In Fiscal Year (FY) 2009-10, the City established a Section 115 Trust to help fund its retiree health obligations, also known as OPEB. In FY 2017-18, the City also established a Section 115 Trust to pre-fund its pension obligations and reduce the potential impact of pension cost volatility on the City's operating budget.

OPEB and Pension Trusts
Section 115 Trust Overview
A Section 115 Trust is a tax-exempt investment tool that allows local governments to prefund pension and retiree health costs. The benefits of a Section 115 Trust include the following:
 Local control over assets: The City controls the contributions, withdrawals, investment strategy, and risk level of assets in the Trust.  Potential for higher investment returns than General Fund: Investment requirements that apply to the City's General Fund assets under Government Code 53601 are not applicable to Trust assets.
 Pension rate stabilization: Assets can be transferred to CalPERS at the City's discretion to pay for Normal Cost or Unfunded Accrued Liability (UAL) contributions and can be used to reduce or eliminate large fluctuations in the City's pension costs.
 Diversification: Trust assets will be diversified from CalPERS investments. 616
CC 11-19-2024
616 of 784
2 OPEB Trust Overview
In FY 2009-10, the City established a Section 115 Trust to help fund its retiree health obligations, also known as OPEB. Compared to a pay-as-you-go plan, the OPEB Trust allows the City to:
 Grow assets to pay future OPEB benefits.
 Earn higher returns than the General Fund.
 Reduce its total cost for providing post-employment benefits.  Reduce its Net OPEB Liability.

In July 2010, the City contributed $7.0 million in initial funding. With additional contributions of $12.3 million, total contributions to date are $19.3 million.

As of June 30, 2024, the City's OPEB Trust had a market value of $38.0 million and had earned an annualized investment return of 6.71% gross of fees since inception.

Time Period Annualized Investment Return
1 Year 13.85%
5 Year 6.54%
Since Inception 6.71%
1-Year investment returns were impacted by financial market volatility due to heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve’s pivot to a less accommodative monetary policy.

As of the June 30, 2024 measurement date, using a 6.5% discount rate, the City’s OPEB plan had an accrued liability of $40.4 million and a market value of assets of $38.0 million, resulting in an unfunded accrued liability of $2.4 million and a funded ratio of 94.1%.

Compared to June 30, 2023, the unfunded accrued liability continued to increase, and the funded ratio decreased, primarily due to changes in actuarial assumptions.

June 30, 2022 June 30, 2023* June 30, 2024*
Accrued Liability 29,871,000 35,290,000 40,389,000
Market Value of Assets 31,340,000 34,708,000 38,013,000 Unfunded Accrued Liability (1,469,000) 582,000 2,376,000 Funded Ratio 104.9% 98.4% 94.1%
*Amounts provided from Actuarial Report, as opposed to PARS provided.

Pension Trust Overview
Since pension obligations are one of the City's largest financial obligations, the City has taken proactive steps to reduce the impacts of pension cost volatility. In March 2018, the City provided options to Council to address rising pension costs. In April 2018, the City presented a long-term pension funding strategy to the Fiscal Strategic Plan Committee. In May 2018, the City adopted a Section 115 Trust, also known as a Pension Rate Stabilization 617
CC 11-19-2024
617 of 784
3 Program (PRSP), to reduce pension rate volatility on the City's budget. The Pension Trust helps the City to:
 Grow assets for future pension contributions.
 Invest assets over appropriate time horizons.
 Earn higher investment returns than the General Fund.  Reduce pension contribution volatility.
 Diversify funds from CalPERS investments.

As a fiscal sustainability measure, the City funds the Pension Trust using a more conservative discount rate of 6.25%. The City's pension funding goal is to accumulate sufficient funds in the Pension Trust to fund the difference between a 6.25% and a 7% discount rate and achieve a funded status of 80% by FY 2036-37, 20 years from the adoption of the Pension Trust. The City's projections indicated that it would need to accumulate over $42 million in the Pension Trust within 20 years to achieve its pension funding goal.

As a result, the funding strategy proposed $8.0 million in initial funding, along with additional funding of $10.0 million over the first five years. To date, the City has contributed $16.0 million, including:
 $8.0 million in FY 2018-19
 $4.0 million in FY 2019-20
 $2.0 million in FY 2020-21
 $2.0 million in FY 2021-22
As of June 30, 2024, the City's Pension Trust had a market value of $21.7 million and had earned an annualized investment return of 7.16% gross of fees since inception.

Time Period Annualized Investment Return
1 Year
5 Year

13.83%

7.28%
Since Inception 5.62%
1-Year investment returns were impacted by financial market volatility due to heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Federal Reserve’s pivot to a less accommodative monetary policy.

OPEB and Pension Trust Investment Policies
The Audit Committee is responsible for reviewing the OPEB and Pension Trust investment policies annually, appointing investment managers, and monitoring investment performance. The City Council is responsible for annually adopting the OPEB and Pension Trust investment policies.
618
CC 11-19-2024
618 of 784
4 It is not expected that the OPEB and Pension Trust investment policies will change frequently. Short-term changes in the financial markets should not require adjustments to the policies.

On October 31, 2024, the Audit Committee reviewed both proposed policies and recommended to remove the following language: “The international equity investments (including emerging markets) shall constitute no more than 20% of the total market value of the Portfolio”. The Audit Committee unanimously (3-0-2) voted to accept the policies.

Public Agency Retirement Services (PARS) is the City’s Trust Administrator and US Bank is the City’s Investment Manager for the Pension and OPEB Trusts. The Investment Manager manages the investments per the investment policies. Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules.

OPEB and Pension Trust Investment Objectives
The OPEB Trust has a “Balanced” investment objective with a target rate of return of

6.50%, and the Pension Trust has a “Balanced” investment objective with a target rate of return of 6.25%. The “Balanced” investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon. The strategic asset allocation ranges and tactical targets for this objective are listed below:
619
CC 11-19-2024
619 of 784
5 Asset Class Range Target
Fixed Income 20-40% 29%
Equities 50-70% 63%
Real Estate 0-15% 5%
Commodities 0-10% 2%
Cash 0-10% 1%
The target rates of return are based on the long-term expected rate of return for assets in the trusts and the City's time horizon for the investments.

With strong reserves and a fully funded OPEB plan, the City can maintain a long-term investment horizon with a “balanced” investment objective. There may be periods of substantial decline in investment value, and the portfolio should expect periodic volatility. However, a 6.56% return on investment is expected over the long-term, based on the current investment objective. More conservative investment objectives such as “moderate” and “moderate-conservative” would expect less volatility and declines in investment value; however, over the long term, they would also expect lower returns.

Many agencies anticipate needing to access the funds in their respective trusts sooner and invest with more emphasis on preserving capital in the near term.

The OPEB Trust has a higher discount rate than the Pension Trust because OPEB investments are expected to have a longer time horizon. OPEB obligations are generally longer in duration, and the City expects to withdraw Pension Trust funds earlier to fund CalPERS contributions. Given that changes to the CalPERS discount rate have larger effects on the City's operating budget and are farther out of the City's control, it is important that the City be able to use the Trust to pay CalPERS contributions as needed.

Sustainability Impact
There is no sustainability impact.

Fiscal Impact
There is no direct fiscal impact at this time.

California Environmental Quality Act
Not applicable.

City Work Program (CWP) Item:

Not a CWP item.

CWP Item Description:

Not Applicable.
620
CC 11-19-2024
620 of 784
6 Council Goal:

Sustainability and Fiscal Strategy
_____________________________________
Prepared by: Jonathan Orozco, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Tina Kapoor, Acting City Manager Attachments:

A – OPEB Trust Investment Policy (Redline)
B – OPEB Trust Investment Policy (Clean)
C – OPEB Investment Policy Draft Resolution
D – Pension Trust Investment Policy (Redline)
E – Pension Trust Investment Policy (Clean)
F – Pension Investment Policy Draft Resolution
621
CC 11-19-2024
621 of 784
1 | Page
Other PostEmployment Benefits
(OPEB) Investment
Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:

November 19, 2024 December 5, 2023
Responsible Department:

Administrative Services
Related Policies & Notes:

City Investment Policy, Pension Investment Policy
Overview
In response to the Government Accounting Standards Board (GASB) Statement No. 45, replaced by GASB Statement No. 74 and GASB Statement No. 75, new disclosure requirements for Other Post‐employment Benefit (OPEB) Plans, the City of Cupertino has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for certain eligible employees
Executive Summary
Account Name:   City of Cupertino OPEB Trust
Account Number:   6746035000
Investment Authority:   Full Investment Authority
Current Assets:    $40.7 33.6 million (September 2024  2023) Time Horizon:    Long‐Term
Target Rate of Return:   6.5%
Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager:   Dennis Mullins
[email protected]
513‐304‐0398
Rick Rosenthal
[email protected]
213‐359‐7954
622
CC 11-19-2024
622 of 784
2 | Page
U.S. Bank Relationship Manager: Ryan Maxey
[email protected]
503‐464‐3789
Investment Objective: ‘Balanced’
This investment objective is designed to provide a moderate amount of current income with moderate growth of capital.Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended forinvestors with a long‐term time horizon.

The strategic asset allocation ranges and tactical targets for this objective are listed below:

Investment Guidelines
Overview
This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s OPEB Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed.

The purpose of this document is threefold.
 First, it will set forth an investment structure for managing the Portfolio assets. This structure is expected to produce an appropriate level of overall diversification and total investment return over the investment time horizon.  Second, it will serve as to encourage effective communications between the organization and parties involved with investment management decisions.  Third, these guidelines will provide a framework to measure ongoing investment performance.

Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of Asset Class Range
Benchmark
Target
Fixed Income 20‐40% 29%
Equities 50‐70% 63%
Real Estate 0‐15% 5%
Commodities 0‐10% 2%
Cash 0‐10% 1%
623
CC 11-19-2024
623 of 784
3 | Page
their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to.

Diversification
Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country.

The following parameters shall be adhered to in managing the portfolio:

Equity & Growth Assets
 The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap).  At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio.
 The international equity investments (including emerging markets) shall constitute no more than 20% of the total market value of the Portfolio  The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio.
 The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio.
 Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio
Permitted Asset Classes and Security Types
Fixed Income & Cash Equivalent Investments:
 Domestic Certificates of Deposit (rated A‐1/P‐1 or better)  Domestic Commercial Paper (rated A‐1/P‐1 or better)
624
CC 11-19-2024
624 of 784
4 | Page
 Floating Rate Notes
 Money Market Mutual Funds
 U.S. Treasury Bonds, Bills and Notes
 U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds  Treasury Inflation‐Protected Securities (TIPS)
 Municipal Bonds and Notes
 Corporate Bonds
 Mortgage‐Backed Bonds (MBS)
 Asset‐Backed Bonds (ABS)
 High‐Yield Bonds (rated B‐/B3 or better)
 Dollar denominated Foreign Bonds and Notes
 Bond Mutual Funds
Equity Investments:
 Common & Preferred Stocks
 American Depository Receipts (ADRs)
 Domestic and International Equity Mutual Funds (Open and Closed)  Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments:
 Commodities Mutual Funds or Exchange Traded Notes (ETNs)  REIT Investment or Pooled Strategy or Fund of REITs
 Registered Hedge Funds or Hedge Fund of Funds
Prohibited Asset Classes and Transactions
The Investment Manager is prohibited from purchasing or holding any of the following types of investments:
 Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above
 Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions
 Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor  Investments for the purpose of exercising control of management  Direct or indirect exposure to cryptocurrencies
 Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions
Duties and Responsibilities
1) CITY OF CUPERTINO AUDIT COMMITTEE
a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy).
625
CC 11-19-2024
625 of 784
5 | Page
b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy.
d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. 2) CITY OF CUPERTINO CITY COUNCIL
a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER
The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including:
a) Manage the day‐to‐day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein.
b) Exercise full investment discretion and prudence in the selection and diversification of investments.
c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal.
d) Provide on a quarterly basis the following investment reporting:
(i) Year‐to‐date rate of return
(ii) Annualized one, three, five, etc. rates of return
e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives.

Investment Policy Statement Review
The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short‐term changes in the financial markets should not require adjustments to the Policy.

If at any time the Portfolio Managerfinds the above guidelines too restrictive or possibly injurious to investmentreturns, they should communicate that information immediately to the City’s Audit Committee.
626
CC 11-19-2024
626 of 784
6 | Page
Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 11.19.2024 City Manager’s signature: _______________________________ Date: _______________________________
Director of Administrative Services’ signature: _______________________________ Date: _______________________________
627
CC 11-19-2024
627 of 784
1 | P a g e
Other PostEmployment Benefits
(OPEB) Investment
Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:

November 19, 2024
Responsible Department:

Administrative Services
Related Policies & Notes:

City Investment Policy, Pension Investment Policy
Overview
In response to the Government Accounting Standards Board (GASB) Statement No. 45, replaced by GASB Statement No. 74 and GASB Statement No. 75, new disclosure requirements for Other Post-employment Benefit (OPEB) Plans, the City of Cupertino has adopted a Section 115 Trust and Plan that seeks to satisfy these liabilities for certain eligible employees
Executive Summary
Account Name: City of Cupertino OPEB Trust
Account Number: 6746035000
Investment Authority: Full Investment Authority
Current Assets: $40.7 million (September 2024)
Time Horizon: Long-Term
Target Rate of Return: 6.5%
Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins
[email protected]
513-304-0398
U.S. Bank Relationship Manager: Ryan Maxey
[email protected]
503-464-3789
628
CC 11-19-2024
628 of 784
2 | P a g e
Investment Objective: ‘Balanced’
This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon.

The strategic asset allocation ranges and tactical targets for this objective are listed below:

Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to.

Asset Class Range
Benchmark
Target
Fixed Income 20-40% 29%
Equities 50-70% 63%
Real Estate 0-15% 5%
Commodities 0-10% 2%
Cash 0-10% 1%
629
CC 11-19-2024
629 of 784
3 | P a g e
Diversification
Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country.

The following parameters shall be adhered to in managing the portfolio:

Equity & Growth Assets
 The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap).  At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio.
 The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio.
 The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio.
 Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio
Permitted Asset Classes and Security Types
Fixed Income & Cash Equivalent Investments:
 Domestic Certificates of Deposit (rated A-1/P-1 or better)  Domestic Commercial Paper (rated A-1/P-1 or better)
 Floating Rate Notes
 Money Market Mutual Funds
 U.S. Treasury Bonds, Bills and Notes
 U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds  Treasury Inflation-Protected Securities (TIPS)
 Municipal Bonds and Notes
 Corporate Bonds
 Mortgage-Backed Bonds (MBS)
630
CC 11-19-2024
630 of 784
4 | P a g e
 Asset-Backed Bonds (ABS)
 High-Yield Bonds (rated B-/B3 or better)
 Dollar denominated Foreign Bonds and Notes
 Bond Mutual Funds
Equity Investments:
 Common & Preferred Stocks
 American Depository Receipts (ADRs)
 Domestic and International Equity Mutual Funds (Open and Closed)  Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments:
 Commodities Mutual Funds or Exchange Traded Notes (ETNs)  REIT Investment or Pooled Strategy or Fund of REITs
 Registered Hedge Funds or Hedge Fund of Funds
Prohibited Asset Classes and Transactions
The Investment Manager is prohibited from purchasing or holding any of the following types of investments:
 Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above
 Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions
 Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor  Investments for the purpose of exercising control of management  Direct or indirect exposure to cryptocurrencies
 Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions
Duties and Responsibilities
1) CITY OF CUPERTINO AUDIT COMMITTEE
a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy).
b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy.
d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. 631
CC 11-19-2024
631 of 784
5 | P a g e
2) CITY OF CUPERTINO CITY COUNCIL
a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER
The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including:
a) Manage the day-to-day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein.
b) Exercise full investment discretion and prudence in the selection and diversification of investments.
c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal.
d) Provide on a quarterly basis the following investment reporting:
(i) Year-to-date rate of return
(ii) Annualized one, three, five, etc. rates of return
e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives.

Investment Policy Statement Review
The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the Policy.

City Manager’s signature: _______________________________ Date: _______________________________
632
CC 11-19-2024
632 of 784
6 | P a g e
Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 11.19.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________
633
CC 11-19-2024
633 of 784
RESOLUTION NO. 24-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ACCEPTING THE CITY INVESTMENT POLICY FOR THE OTHER POSTEMPLOYMENT BENEFITS TRUST WHEREAS, the City’s Other Post-Employment Benefit Trust, established for sole purpose to benefit the general public, has available funds to invest in accordance with principles of sound treasury management; and
WHEREAS, the City invests funds in accordance with provisions of California Government Code Section 53600; and
WHEREAS, the City’s Audit Committee reviewed and accepted the attached City Investment Policy for the Other Post-Employment Benefits Trust on October 31, 2024.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino accepts the attached City Investment Policy for the Other Post-Employment Benefits Trust dated November 19, 2024.

BE IT FURTHER RESOLVED that this Resolution is not a project under the requirements of the California Environmental Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in the environment. In the event that this Resolution is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility that the action approved may have a significant effect on the environment. CEQA applies only to actions which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the proposed action to accept the City’s Investment Policy would have no or only a de minimis effect on the environment. The foregoing determination is made by the City Council in its independent judgment.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of November 2024, by the following vote:

Vote Members of the City Council
AYES:

NOES:
634
CC 11-19-2024
634 of 784
ABSENT:

ABSTAIN:

SIGNED:
________
Sheila Mohan, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________
Kirsten Squarcia, City Clerk
________________________
Date
635
CC 11-19-2024
635 of 784
1 | Page
Pension Trust
Investment Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:

November 19, 2024 December 5, 2023
Responsible Department:

Administrative Services
Related Policies & Notes:

N/A
Investment Policy Statement
Overview
The City has established a Section 115 Trust with PARS to assist in stabilizing the potential impact of pension cost volatility on the City’s operating budget. The City intends to use the Section 115 Trust to pre‐fund pension costs and proactively address the unfunded liability. The City’s goal is to have sufficient assets in the trust to increase the funded status to over 80% within 20 years, as well as fund the difference between a 7.0% and 6.25% discount rate.

Executive Summary
Account Name:   City of Cupertino Pension Trust
Account Number:   6746050100
Investment Authority:   Full Investment Authority
Current Assets:    $23.0 18.5 Million (September 20242023) Time Horizon:    Long‐Term
Target Rate of Return:   6.25%
Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager:   Dennis Mullins
[email protected]
513‐304‐0398
Rick Rosenthal
[email protected]
213‐359‐7954
U.S. Bank Relationship Manager: Ryan Maxey
[email protected]
503‐464‐3789
636
CC 11-19-2024
636 of 784
2 | Page
Investment Objective: ‘Balanced’
This investment objective is designed to provide a moderate amount of current income with moderate growth of capital.Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended forinvestors with a long‐term time horizon.

The strategic asset allocation ranges and tactical targets for this objective are listed below:

Investment Guidelines
Overview
This document defines the investment policy, guidelines and performance objectives applicable to the assets of The City of Cupertino’s Pension Trust. The goal of this Policy is to create an investment framework within which the assets can be actively yet prudently managed.

Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations Asset Class Range
Benchmark
Target
Fixed Income 20‐40% 29%
Equities 50‐70% 63%
Real Estate 0‐15% 5%
Commodities 0‐10% 2%
Cash 0‐10% 1%
637
CC 11-19-2024
637 of 784
3 | Page
from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to.

The following parameters shall be adhered to in managing the portfolio:

Fixed Income Assets
 The fixed income investments are to maintain intermediate‐term average weighted duration, between three‐seven years.
 At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations.  The direct high‐yield portion shall constitute no more than 10% of the total market value of the Portfolio.
 Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio
Equity & Growth Assets
 The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap).  At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio.
 The international equity investments (including emerging markets) shall constitute no more than 20% of the total market value of the Portfolio  The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio.
 The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio.
 Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio
Permitted Asset Classes and Security Types
Fixed Income & Cash Equivalent Investments:
 Domestic Certificates of Deposit (rated A‐1/P‐1 or better)  Domestic Commercial Paper (rated A‐1/P‐1 or better)
 Floating Rate Notes
 Money Market Mutual Funds
 U.S. Treasury Bonds, Bills and Notes
638
CC 11-19-2024
638 of 784
4 | Page
 U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds  Treasury Inflation‐Protected Securities (TIPS)
 Municipal Bonds and Notes
 Corporate Bonds
 Mortgage‐Backed Bonds (MBS)
 Asset‐Backed Bonds (ABS)
 High‐Yield Bonds (rated B‐/B3 or better)
 Dollar denominated Foreign Bonds and Notes
 Bond Mutual Funds
Equity Investments:
 Common & Preferred Stocks
 American Depository Receipts (ADRs)
 Domestic and International Equity Mutual Funds (Open and Closed)  Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments:
 Commodities Mutual Funds or Exchange Traded Notes (ETNs)  REIT Investment or Pooled Strategy or Fund of REITs
 Registered Hedge Funds or Hedge Fund of Funds
Prohibited Asset Classes and Transactions
The Investment Manager is prohibited from purchasing or holding any of the following types of investments:
 Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above
 Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions
 Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor  Investments for the purpose of exercising control of management  Direct or indirect exposure to cryptocurrencies
 Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions
Duties and Responsibilities
1) CITY OF CUPERTINO AUDIT COMMITTEE
a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy).
b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. 639
CC 11-19-2024
639 of 784
5 | Page
c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy.
d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. 2) CITY OF CUPERTINO CITY COUNCIL
a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER
The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including:
a) Manage the day‐to‐day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein.
b) Exercise full investment discretion and prudence in the selection and diversification of investments.
c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal.
d) Provide on a quarterly basis the following investment reporting:
(i) Year‐to‐date rate of return
(ii) Annualized one, three, five, etc. rates of return
e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives.

If at any time the Portfolio Managerfinds the above guidelines too restrictive or possibly injurious to investmentreturns, they should communicate that information immediately to the City’s Audit Committee.
640
CC 11-19-2024
640 of 784
6 | Page
Revisions: 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 11.24.2024 City Manager’s signature: _______________________________ Date: _______________________________
Director of Administrative Services’ signature: _______________________________ Date: _______________________________
641
CC 11-19-2024
641 of 784
1 | P a g e
Pension Trust
Investment Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:

November 19, 2024
Responsible Department:

Administrative Services
Related Policies & Notes:

N/A
Investment Policy Statement
Overview
The City has established a Section 115 Trust with PARS to assist in stabilizing the potential impact of pension cost volatility on the City’s operating budget. The City intends to use the Section 115 Trust to pre-fund pension costs and proactively address the unfunded liability. The City’s goal is to have sufficient assets in the trust to increase the funded status to over 80% within 20 years, as well as fund the difference between a 7.0% and 6.25% discount rate.

Executive Summary
Account Name: City of Cupertino Pension Trust
Account Number: 6746050100
Investment Authority: Full Investment Authority
Current Assets: $23.0 Million (September 2024)
Time Horizon: Long-Term
Target Rate of Return: 6.25%
Communication Schedule: Meetings will be conducted at least quarterly U.S. Bank Portfolio Manager: Dennis Mullins
[email protected]
513-304-0398
U.S. Bank Relationship Manager: Ryan Maxey
[email protected]
503-464-3789
642
CC 11-19-2024
642 of 784
2 | P a g e
Investment Objective: ‘Balanced’
This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficient tolerance for price and return volatility and substantial periodic declines in investment value. This objective is recommended for investors with a long-term time horizon.

The strategic asset allocation ranges and tactical targets for this objective are listed below:

Within the constraints imposed by these policies, Investment Managers are expected to comply with all applicable fiduciary and due diligence requirements under the “prudent investor” rules, which state: “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” All applicable laws, rules and regulations from various local, state, federal and international political entities that may impact the Portfolio are to be adhered to.

Asset Class Range
Benchmark
Target
Fixed Income 20-40% 29%
Equities 50-70% 63%
Real Estate 0-15% 5%
Commodities 0-10% 2%
Cash 0-10% 1%
643
CC 11-19-2024
643 of 784
3 | P a g e
Diversification
Your Portfolio Manager is responsible for maintaining the balance between the various asset classes based on the investment objective’s strategic asset allocation. As a general policy, the Investment Manager will maintain reasonable diversification at all times by asset class, credit quality, issuer, sector, industry, and country.

The following parameters shall be adhered to in managing the portfolio:

Fixed Income Assets
 The fixed income investments are to maintain intermediate-term average weighted duration, between three-seven years.
 At the time of purchase, no single fixed income issuer shall exceed 2% of the total market value of the Portfolio, with the exception of U.S. Treasury or Agency obligations.  The direct high-yield portion shall constitute no more than 10% of the total market value of the Portfolio.
 Hedged fixed income positions shall constitute no more than 10% of the total market value of the Portfolio
Equity & Growth Assets
 The domestic equity investments are expected to be diversified at all times by size, industry, sector, and style (Large Cap, Mid Cap, and Small Cap).  At the time of purchase, no individual equity security shall exceed 2% of the total market value of the Portfolio.
 The real estate investments shall be captured through the use of diversified mutual funds or ETFs investing in REITs; and shall constitute no more than 15% of the total market value of the Portfolio.
 The commodities investments shall be captured through the use of diversified mutual funds or ETFs; and shall constitute no more than 10% of the total market value of the Portfolio.
 Hedged equity positions shall constitute no more than 10% of the total market value of the Portfolio
Permitted Asset Classes and Security Types
Fixed Income & Cash Equivalent Investments:
 Domestic Certificates of Deposit (rated A-1/P-1 or better)  Domestic Commercial Paper (rated A-1/P-1 or better)
 Floating Rate Notes
 Money Market Mutual Funds
 U.S. Treasury Bonds, Bills and Notes
 U.S. Agency (and Instrumentality) Discount Notes, Notes, and Bonds  Treasury Inflation-Protected Securities (TIPS)
 Municipal Bonds and Notes
 Corporate Bonds
 Mortgage-Backed Bonds (MBS)
644
CC 11-19-2024
644 of 784
4 | P a g e
 Asset-Backed Bonds (ABS)
 High-Yield Bonds (rated B-/B3 or better)
 Dollar denominated Foreign Bonds and Notes
 Bond Mutual Funds
Equity Investments:
 Common & Preferred Stocks
 American Depository Receipts (ADRs)
 Domestic and International Equity Mutual Funds (Open and Closed)  Emerging Market Equity Funds or Exchange Traded Funds (ETFs) Alternative Investments:
 Commodities Mutual Funds or Exchange Traded Notes (ETNs)  REIT Investment or Pooled Strategy or Fund of REITs
 Registered Hedge Funds or Hedge Fund of Funds
Prohibited Asset Classes and Transactions
The Investment Manager is prohibited from purchasing or holding any of the following types of investments:
 Partnerships unless investing in Master Limited Partnerships invested in a mutual fund and limited in scope and allocation of Portfolio based on asset class limitations of table above
 Letter stock and other unregistered securities; physical commodities or other commodity contracts; and short sales or margin transactions
 Investments in the equity securities of any company with a record of less than three years continuous operation, including the operation of any predecessor  Investments for the purpose of exercising control of management  Direct or indirect exposure to cryptocurrencies
 Leveraged securities, other than registered Hedged Equity and Hedged Fixed Income positions
Duties and Responsibilities
1) CITY OF CUPERTINO AUDIT COMMITTEE
a) Establish, approve, and maintain investment objectives, guidelines, and policies (including this Policy).
b) Appoint Investment Managers who can be reasonably expected to adhere to the investment guidelines and meet the investment objectives as established. c) Monitor the investment performance of the Portfolio and compare actual investment performance relative to an appropriate benchmark index given the stated investment guidelines and objectives set forth in this Policy.
d) Conduct a formal review of the Portfolio’s asset allocation, investment structure and performance annually or more frequently as the need arises. e) Periodically review the Portfolio performance against objectives. 645
CC 11-19-2024
645 of 784
5 | P a g e
2) CITY OF CUPERTINO CITY COUNCIL
a) Adopt the Policy by resolution of the City Council on an annual basis. 3) PORTFOLIO MANAGER
The Portfolio Manager will be responsible for carrying out the activities related to the Portfolio in accordance with the Policy including:
a) Manage the day-to-day investment of Portfolio assets in accordance with the Policy guidelines and objectives included herein.
b) Exercise full investment discretion and prudence in the selection and diversification of investments.
c) Promptly bring to the attention of the City Treasurer or designee any investment that is subsequently downgraded and fails to meet the quality guidelines, along with a recommendation of retention or disposal.
d) Provide on a quarterly basis the following investment reporting:
(i) Year-to-date rate of return
(ii) Annualized one, three, five, etc. rates of return
e) Provide annually to the City’s Audit Committee a commentary and analysis of investment performance to include an evaluation of the current and future investment environment and potential impact of the investment environment on achievement of investment objectives.

Investment Policy Statement Review
The City’s Audit Committee will review and the Cupertino City Council will adopt this Investment Policy Statement at least annually to determine whether stated investment objectives are still relevant and the continued feasibility of achieving the same. It is not expected that the Policy will change frequently. In particular, short-term changes in the financial markets should not require adjustments to the Policy.

City Manager’s signature: _______________________________ Date: _______________________________
646
CC 11-19-2024
646 of 784
6 | P a g e
Revisions: 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 11.19.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________
647
CC 11-19-2024
647 of 784
RESOLUTION NO. 24-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO

ACCEPTING THE CITY INVESTMENT POLICY FOR THE PENSION TRUST WHEREAS, the City’s Pension Trust, established for sole purpose to benefit the general public, has available funds to invest in accordance with principles of sound treasury management; and
WHEREAS, the City invests funds in accordance with provisions of California Government Code Section 53600; and
WHEREAS, the City’s Audit Committee reviewed and accepted the attached City Investment Policy for the Pension Trust on October 31, 2024.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino accepts the attached City Investment Policy for the Pension Trust dated November 19, 2024.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of November 2024, by the following vote:

Vote Members of the City Council
AYES:

NOES:

ABSENT: 648
CC 11-19-2024
648 of 784
ABSTAIN:

CITY OF CUPERTINO
Agenda Item
24-13471 Agenda Date:
11/19/2024 Agenda #:

16. Subject: Adopt an allocation plan for funds uncommitted from the Sales Tax Repayment reserve Option A:

A. Adopt Option A
Option B:

A. Adopt Option B
B. Adopt Resolution No. 24-109 approving budget modification No. 2425-366, increasing appropriations by $11,688,705
C. Adopt Resolution No. 24-110 amending the Unrepresented Employees’ Compensation Program D. Approve new three-year limited term Grants Analyst position for grants management E. Approve new Assistant Director of Administrative Services, Grants Analyst, Senior Business Systems Analyst and Supervising Code Enforcement classifications Option C:

A. Adopt Option C
B. Adopt Resolution No. 24-109 approving budget modification No. 2425-366, increasing appropriations by $11,688,705
C. Adopt Resolution No. 24-110 amending the Unrepresented Employees’ Compensation Program D. Approve new three-year limited term Grants Analyst position for grants management E. Approve new Assistant Director of Administrative Services, Grants Analyst, Senior Business Systems Analyst and Supervising Code Enforcement classifications CITY OF CUPERTINO Page 1 of 1 Printed on 11/13/2024
powered by Legistar™650
CC 11-19-2024
650 of 784

CITY COUNCIL STAFF REPORT
Meeting: November 19, 2024
Subject
Allocation plan for funds uncommitted from the Sales Tax Repayment reserve Recommended Action
Option A:

A. Adopt Option A
Option B:

A. Adopt Option B
B. Adopt Resolution No. 24-XXX approving budget modification No. 2425-366, increasing appropriations by $11,688,705
C. Adopt Resolution No. 24-XXX amending the Unrepresented Employees’ Compensation Program
D. Approve new three-year limited term Grants Analyst position for grants management E. Approve new Assistant Director of Administrative Services, Grants Analyst, Senior Business Systems Analyst and Supervising Code Enforcement classifications Option C:

A. Adopt Option C
B. Adopt Resolution No. 24-XXX approving budget modification No. 2425-366, increasing appropriations by $11,688,705
C. Adopt Resolution No. 24-XXX amending the Unrepresented Employees’ Compensation Program
D. Approve new three-year limited term Grants Analyst position for grants management E. Approve new Assistant Director of Administrative Services, Grants Analyst, Senior Business Systems Analyst and Supervising Code Enforcement classifications Reasons for Recommendation
City staff evaluated feedback received from the October 15 Council meeting, reviewed budget surveys collected during the last two fiscal years of budget reductions and received 651
CC 11-19-2024
651 of 784
department feedback to develop a preliminary plan to mitigate the impact of budget cuts implemented in the Fiscal Year 2023-24 and 2024-25 budgets.

The preliminary plan outlines guiding principles that were considered before presenting for Council consideration and areas of focus to ensure the recommended allocation options include variable funding for the community, staff, and capital investments for the City.

Background
On October 4, 2024, the City finalized a settlement agreement with the California Department of Tax and Fee Administration (CDTFA) resolving the CDTFA’s proposed reallocation of disputed sales tax received by the City. On October 15, 2024, the Council approved staff recommendation to uncommit $74.5 million in funds set aside for the potential repayment of disputed sales tax previously received by the City. The purpose of this proposed allocation plan is to provide Council options for the potential one-time allocation of the $74.5 million that is now unassigned (Attachment A). As explained in detail in the allocation plans, the options presented by staff attempt to balance the City’s need for long-term investment and the desire to restore certain reductions with the need for long-term fiscal prudence, given the reduction in future sales and use tax revenues that the City will experience.

The options include potential funding for infrastructure projects, restoring reduced services, and setting some funding aside. The need for additional classifications results in no new positions except the limited-term Grants Analyst. The request for one three-year limited term Grants Analyst position to assist with grant applications, tracking and reporting along with purchasing support may be funded via donation, but if not is anticipated to be cost recovery via grants obtained. The need for staffing changes is due to reductions made either being too deep to continue the work already allocated, or because of how duties and responsibilities have been redistributed due to contract and staffing reductions.

All options presented are summarized in the table below. Additional details are included in the Allocation Plan (Attachment A).

Allocation Plan Capital Fund
Reserve
Allocations for
current use
General Fund
Reserves
Option A
Option B
Option C
Next Steps
Based on the direction that Council provides, staff will make all changes in the financial system and updates on the funds will be provided as part of the mid-year financial report. 652
CC 11-19-2024
652 of 784
Sustainability Impact
No Sustainability Impact.

Fiscal Impact
Should City Council approve an option that includes current allocations as listed in Attachment E, appropriations would increase by $11,688,705. Funding for these increased expenses will come from unassigned fund balance that, with the recommended funding additions, is estimated to end Fiscal Year 2024-25 with $154.3 million. Should Council approve an option with no current year allocations, estimated year-end fund balance will remain unchanged from the first quarter report and is estimated at $166 million in the general fund.

City Work Program (CWP) Item:

No
CWP Item Description:

Not Applicable.

Council Goal:

Sustainability and Fiscal Strategy
California Environmental Quality Act:

Not Applicable.

Prepared by: Jonathan Orozco, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Christopher Jensen, City Attorney
Approved for Submission by: Tina Kapoor, Acting City Manager Attachments:

A – One-time Funds Allocation Plan Fiscal Year 2024-25
B - Committed, Unassigned Fund Balance, and Use of One Time Funds Policy Options A and B (Redline)
C - Option A Committed, Unassigned Fund Balance, and Use of One Time Funds Policy (Clean)
D – Option B Committed, Unassigned Fund Balance, and Use of One Time Funds Policy (Clean)
E – Detailed allocation plan for current use
F – Budget Resolution
G – Assistant Director of Administrative Services Position Description H – Grants Management Analyst Position Description
I – Code Enforcement Supervisor Position Description
J – Senior Business Systems Analyst Position Description 653
CC 11-19-2024
653 of 784
K – Unrepresented Employees’ Compensation Program (Redline) L – Draft Resolution Amending the Unrepresented Employees’ Compensation Program M – Unfunded CIP List
654
CC 11-19-2024
654 of 784
Attachment A
One-time Funds Allocation Plan
Fiscal Year 2024-25
Background
Due to a favorable negotiated settlement, the Council has uncommitted $74.5 million dollars in one-time funds. The options outlined in this plan are intended to provide the Council with recommendations for how these dollars can be allocated. In creating the three different potential options for allocating these dollars, staff developed Areas of Focus and Guiding Principles that have influenced the allocation plan options discussed in this report. Staff also reviewed prior budget surveys to assess areas that the community wanted to scale back on or retain, and lastly reviewed service level reductions and unmet needs to develop potential use of these dollars in the current fiscal year.

Areas of Focus
Staff reviewed reductions made to date and the following focus areas were identified to ensure the recommended allocation options included variable funding for the community, staff, and City infrastructure:

I. Restoring Community Benefits – Prioritizes adding back any community benefits that had been reduced where practical, and where ongoing funding is minimal to not increase the structural deficit.

II. Restoring Reduced Services – Prioritizes restoring reduced services where practical, and where ongoing funding is minimal to not increase the structural deficit.

III. Investing in Employees – Prioritizes funding for training and development, reclassifications where necessary to align with new duties and responsibilities because of budget reductions and, new positions where practical and where ongoing funding is minimal to not increase the structural deficit.

IV. Enhancements – This includes any new funding requests that are not a restored budget reduction.

Guiding Principles
I. One-time funds should be allocated for one-time expenses that result in ongoing savings and/or efficiencies.1

1 Examples of this include funding for pavement and retiree health unfunded actuarial liability made when the City received one-time funds related to the sale of Pruneridge Ave. These decisions paid off during our most recent budget reductions when the city could significantly reduce spending on pavement with minimal impacts and was able to use the funding in the retirement health fund to cover two years of costs. Both of these significantly assisted in balancing the budget. 655
CC 11-19-2024
655 of 784
II. One-time funds should be allocated for one-time expenses, even if that allocation doesn’t result in ongoing savings and/or efficiencies.

III. Funds should be held for future use when immediate needs are not present.

IV. Limited use of funds on ongoing expenses to limit increasing the structural deficit.

Allocation Plan Options
Staff has developed three options for Council consideration for the allocation of or reserving the funds. The highlights of each plan are summarized in the table below:

Allocation Plan Capital Fund
Reserve
Allocations for
current use
General Fund
Reserves
Option A
Option B
Option C
OPTION A – No allocation recommendations; funds are to be held in a new committed reserve.

Under this option, the City Council would create a “Reserve for Future Use,” committing funds for future needs to be determined by the City Council. This reserve would be drawn down as the funds are expended and would not be replenished, as these are one-time funds resulting from the uncommitted sales tax repayment reserve.

As outlined on page 167 of the Fiscal Year 2024-25 Final Budget, committed reserves “include amounts that can be spent only for specific purposes determined by formal action of the City’s highest decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) that imposed the constraint originally.” The City currently faces operational needs, such as aging infrastructure, that—if left unaddressed—could lead to additional operational costs not currently included in the forecast.

However, holding these funds as a reserve for future needs carries certain financial limitations due to inflation. The following tables provide a 10-year historical comparison of inflation against annualized returns from the 1-5 Year Treasury and Agency Index benchmark (provided by Chandler Asset Management) and the Local Agency Investment Fund (LAIF). The inflation rate is based on data from the U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers: All Items in San Francisco-Oakland-Hayward, CA.

Below are two charts comparing the effects of inflation on investing uncommitted funds against two benchmarks for investment vehicles currently utilized by the City. As shown in the first chart, which compares inflation to long-term investments, the purchasing power of the $74.5 million reserve would decline by approximately $10 million over 10 years if interest is reinvested. This decline is even steeper, over $20 million, if the interest is instead used to support operations. The 656
CC 11-19-2024
656 of 784
second chart presents a similar comparison with LAIF returns, where the purchasing power of the $74.5 million reserve decreases by around $13 million if interest is reinvested over 10 years and by more than $20 million if the interest supports operations. 657
CC 11-19-2024
657 of 784
This analysis demonstrates that inflation continues to outpace investment returns, making this holding strategy unsustainable over the long term. The California Government Code imposes restrictions on the types and durations of investments allowed, which limits potential returns and underscores the priority of safety and liquidity over yield. Given these constraints, this option may not provide the necessary growth to preserve the reserve’s purchasing power for future needs.

OPTION B – Allocates funds for spending, allocates funds in a committed reserve in the General Fund, and any remaining funds are transferred to the Capital Reserve. This option provides a balanced approach to how these funds might be used. Allocating funds for aging infrastructure, departmental needs and leveraging one-time dollars to provide ongoing savings and or efficiencies. This option also sets aside funding to cover the structural deficits in the 10-year forecast.

Allocations for Future Use:

Area of
Focus
Guiding
Principal
Description Allocation
One-time
Allocation
Ongoing
Enhancement Hold funds for
future use
Transfer to the Capital
Reserve. Public works staff
will return at a future date
with a spending plan for
$31,811,295 $0
658
CC 11-19-2024
658 of 784
these dollars. It is
anticipated that based on
the list of projects
presented and
subsequently adopted
additional staffing may be
necessary to support an
increase in the CIP
projects. See attachment M
for unfunded CIP list.

Enhancement Hold funds for
future use
Create a committed
reserve in the General
Fund for estimated
deficits in the 10-year
forecast. Funds are
estimated for use
beginning in FY 2028-29
through FY 2033-34.

Should alternate revenue
sources and or additional
reduced spending be
identified to produce a
balanced budget in all
years of the forecast, staff
would return to Council
to uncommit these funds.
$31,000,000 $0
Total Allocations for Future Use $62,811,295 $0
Allocations for Current Use, see Attachment E for more detail:

Area of Focus Guiding
Principal
Description Allocation
One-Time
Allocation
Ongoing
Restoring of
Community
Benefits
N/A All but one community
benefit item was not
reduced
$0 $0
Restoring
Reduced
Service
N/A Staff is still determining
the workability of
increasing any reduced
service and will return
later with a proposal if
needed.
$0 $0
Investing in
Employees
One-time funds
with ongoing
Invest $10 million
towards CalPERS
$10,769,166 $175,500
659
CC 11-19-2024
659 of 784
Area of Focus Guiding
Principal
Description Allocation
One-Time
Allocation
Ongoing
savings or
efficiencies,
and limit
ongoing
expenses
unfunded actuarial
liability payment
(following section for
more detail.) Purchase of
a new Enterprise
Resource Planning
Software (Finance/HR)
and increases to training
funding citywide to 50%
of what was originally
reduced (ongoing).

Enhancements One-time funds
with ongoing
savings or
efficiencies
Staffing study $66,000 $0
One-time funds Purchase of goods,
studies, software and
enhance physical safety
controls at City Hall.
$500,000
Limit ongoing
expenses
New limited term Grants
analyst and new
classifications
$0 $178,039
Total all allocations for immediate use $11,335,166 $353,539 CalPERS One-Time Allocation to Unfunded Actuarial Liability (UAL) UAL is defined by CalPERS as “the amortized dollar amount needed to fund past service credit earned (or accrued) for members who are currently receiving benefits, active members, and for members entitled to deferred benefits, as of the valuation date.” To address this liability, the City is considering a one-time Additional Discretionary Payment (ADP) of $10 million. If implemented, this ADP is projected to decrease the City’s cash outflows over the next 10 years by approximately $13 million, resulting in net savings of $3 million. The estimated impact on retirement payments is illustrated in the chart below.
660
CC 11-19-2024
660 of 784
In addition to cash flow savings, this one-time payment would immediately improve the funded status of the City’s retirement plan, raising it from 67% to 75% in the first year. Although the funded status improvement narrows over the 10-year forecast, the ADP maintains a higher funded status than without the payment, as shown in the table below.

Note: Projections in the charts are provided by CalPERS’ Managing Employer Contributions Tool. -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
CalPERS Projected Annual UAL Payments
Annual UAL Payment (Original) Annual UAL Payment (w/ ADP)

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%
CalPERS Projected Funding Status
Funded Status Funded Status (w/ ADP)
661
CC 11-19-2024
661 of 784
OPTION C – Allocates funds for all current year budget requests and transfers all remaining funds to Capital Reserve for future use. This transfer would bring the Capital Reserve total to an estimated $65.7 million. This option leaves no funds from the sales tax payment reserve in the unassigned category. All funds after funding requests are met would be moved to the Capital Reserve Fund.

This option transfers all funds to the Capital Reserve for future spending and allocates no funds to a reserve or unassigned account to fund potential structural deficits in the out years, leaving the city vulnerable to future budget reductions.

Description Allocation
One-Time
Allocation
Ongoing
Fund all allocations in the
Allocations for Current Use table
above (green).
$11,335,166 $353,539
Transfer remaining balance to
Capital Reserve to fund future
Capital Improvement Plan (CIP)
projects.
$62,811,295 -
Total Reserve Recommendations $74,146,461 $353,539
GRAND TOTAL OPTION C $74,146,461 $353,539
In conclusion, three options are presented for Council consideration. With council direction, staff will bring updates on the funds based on council direction as part of the FY 2024-25 MidYear Financial Report. 662
CC 11-19-2024
662 of 784
Attachment B
Committed, Unassigned Fund Balance, and Use of One Time Funds Policy
Purpose
To establish assigned and unassigned fund balance and one-time use policies.

Scope
The General Fund and Capital Funds.

Policy
To maintain sufficient committed and unassigned fund balance (General Fund only) in each fund for the ability to meet the following economic uncertainties:

Economic Uncertainty Reserve – $21,329,593 and represents two months of General Fund (GF) expenditures excluding transfers out plus a two year drop in total general fund revenue of 13% or approximately 1.5 months, excluding the use of reserves. Transfers out are primarily used to fund Capital Projects and do not represent on-going expenditures.

This assignment will change from year to year based on budgeted general fund expenditures and revenues.
 Mitigate short-term economic downturns and volatility in revenues (2 years or less)
 Sustain city services in the event of an emergency
 Meet requirements for debt reserves
 Meet operating cash flow requirements as a result of delay in the receipt of taxes, grant proceeds and other operating revenues
PERS – $19,088,859 and represents the funds restricted for the City's pension obligations.

In response to the increasing retirement costs based on actuarial forecasts, the City created a secondary pension trust to help stabilize the impact of pension cost volatility on the City's operating budget. To fund this secondary trust, the City made an initial contribution. After that, the annual contributions are determined based on the difference between CalPERS' current discount rate and a more conservative rate determined by the City. This difference will then be transferred to the pension trust and used exclusively for the benefit of members in the plan.

The primary goal of establishing this secondary trust is to ensure that the City can continue to provide its employees with the retirement benefits they have earned while maintaining fiscal responsibility. By using a more conservative rate for calculating 663
CC 11-19-2024
663 of 784
Attachment B
contributions, the City can better anticipate and manage pension costs and mitigate potential negative impacts on the City's budget.

Funds in this trust are technically “restricted” under Governmental Accounting Standards Board (GASB) Statement No. 54 in that the funds are legally restricted to be used for retirement costs; however, the timing for which these funds may be used is only at the discretion of City Council.

Sustainability Reserve – Cupertino’s Sustainability Division oversees the City’s Climate Action Plan (CAP), which defines strategies to reduce greenhouse gas emissions, and provides residents, businesses and schools with programs and services focused on energy efficiency, renewable energy, water conservation, alternative transportation and other sustainable actions. The City receives rebates for projects that successfully meet the eligibility requirements such as energy or water efficiency. If the rebates were not initially budgeted, they are categorized as committed fund balance in the General Fund. The purpose of this reserve is to help support future sustainability projects/programs.

Reserve for Future Use – $74,500,000 and represents funds that were uncommitted from the Sales Tax Repayment reserve. These funds are for future use, as determined by action of the City Council.

Or
Deficits Funding -- $31,000,000 and represents the sum of projected deficits in the most recent (Fiscal Year 2024-25) General Fund forecast in the adopted budget. These funds may only be used to fund deficits should they materialize.

Unassigned – $500,000 and represents 1% of the total general fund operating budget. This assignment may change from year to year based on budgeted general fund expenditures.
 Absorb unanticipated operating needs that arise during the fiscal year that were not anticipated during the budget process
 Absorb unexpected claims or litigation settlements
Capital Improvement – $5,000,000 and represents average dollars spent for capital projects in the last three fiscal years. This assignment may change from year to year based on actuals dollars spent on capital projects and anticipated future capital project needs.  Meet future capital project needs so as to minimize future debt obligations 664
CC 11-19-2024
664 of 784
Attachment B
The City shall not use fund balances/reserves in lieu of revenues to pay for ongoing expenses except as specifically provided in the City’s reserve policy.

The chart below summarizes reserve policy levels as described above:

Funding
Priority Reserve
Reserve
Level1 Escalator2 Description

GENERAL FUND
1 Economic
Uncertainty
Reserve
$18,000,000
GF Budgeted
Operating
Expenditures3 GF
Budgeted
Revenue4
For economic
downturns and
major revenue
changes.
2 PERS $19,088,859
Budgeted
Citywide
Retirement Costs
For pension costs.
3 Sustainability
Reserve $127,891 GF Budget Revenue4
For future
sustainability
projects/programs.
4 Future Use $74,500,000
None,
Uncommitted
Sales Tax
Repayment
Reserve Funds
For future use as
determined by
City Council
4 Deficit Funding $31,000,000
None, will be
updated as
forecast is
updated
To fund structural
deficits in the 10
year forecast.
45 Unassigned $500,000
Budgeted GF
Operating
Expenditures3
For mid-year
budget
adjustments and
redeployment into
the five year
budget.
665
CC 11-19-2024
665 of 784
Attachment B

CAPITAL PROJECTS FUNDS
6 Capital
Improvement $5,000,000 None
Reserves set aside
for future capital
projects.
1 As of June 30, 2023
2 Rounded to the nearest hundred thousand
3 Excludes Transfers Out
4 Excludes the use of reserves
Changes to Committed Fund Balance – All reserves listed in this policy, with the exception of the PERS restricted reserve, are classified as Committed Fund Balance under GASB Statement No. 54. Committed fund balance is comprised of amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Changes to committed fund balances must be approved by City Council. This policy will be reviewed annually as part of the budget process.

Replenishment process – Should the City need to utilize any of the committed fund balances listed in this policy, a recommendation will be brought to City Council for approval and a plan to replenish the committed balance will be developed in conjunction with its use.

Excess – Funding of these reserves will come generally from one-time revenues, annual net income, and transfers from other reserves that exceed policy levels. They will be funded in the following priority order with any remaining funds to be placed in the Capital Reserve:
1) Economic Uncertainty Reserve
2) PERS
3) Sustainability Reserve
4) Unassigned
Revised October 15, 2024 November 19, 2024
666
CC 11-19-2024
666 of 784
Attachment C
Committed, Unassigned Fund Balance, and Use of One Time Funds Policy
Purpose
To establish assigned and unassigned fund balance and one-time use policies.

Scope
The General Fund and Capital Funds.

Policy
To maintain sufficient committed and unassigned fund balance (General Fund only) in each fund for the ability to meet the following economic uncertainties:

The primary goal of establishing this secondary trust is to ensure that the City can continue to provide its employees with the retirement benefits they have earned while maintaining fiscal responsibility. By using a more conservative rate for calculating 667
CC 11-19-2024
667 of 784
Attachment C
contributions, the City can better anticipate and manage pension costs and mitigate potential negative impacts on the City's budget.

Reserve for Future Use – $74,500,000 and represents funds that were uncommitted from the Sales Tax Repayment reserve. These fund are for future use, as determined by action of the City Council.

Unassigned – $500,000 and represents 1% of the total general fund operating budget. This assignment may change from year to year based on budgeted general fund expenditures.
 Absorb unanticipated operating needs that arise during the fiscal year that were not anticipated during the budget process
 Absorb unexpected claims or litigation settlements
Capital Improvement – $5,000,000 and represents average dollars spent for capital projects in the last three fiscal years. This assignment may change from year to year based on actuals dollars spent on capital projects and anticipated future capital project needs.  Meet future capital project needs so as to minimize future debt obligations The City shall not use fund balances/reserves in lieu of revenues to pay for ongoing expenses except as specifically provided in the City’s reserve policy.

The chart below summarizes reserve policy levels as described above:
668
CC 11-19-2024
668 of 784
Attachment C
Funding
Priority Reserve
Reserve
Level1 Escalator2 Description

GENERAL FUND
1 Economic
Uncertainty
Reserve
$18,000,000
GF Budgeted
Operating
Expenditures3 GF
Budgeted
Revenue4
For economic
downturns and
major revenue
changes.
2 PERS $19,088,859
Budgeted
Citywide
Retirement Costs
For pension costs.
3 Sustainability
Reserve $127,891 GF Budget Revenue4
For future
sustainability
projects/programs.
4 Future Use $74,500,000
None,
Uncommitted
Sales Tax
Repayment
Reserve Funds
For future use as
determined by
City Council
5 Unassigned $500,000
Budgeted GF
Operating
Expenditures3
For mid-year
budget
adjustments and
redeployment into
the five year
budget.

CAPITAL PROJECTS FUNDS
6 Capital
Improvement $5,000,000 None
Reserves set aside
for future capital
projects.
1 As of June 30, 2023
669
CC 11-19-2024
669 of 784
Attachment C
2 Rounded to the nearest hundred thousand
3 Excludes Transfers Out
4 Excludes the use of reserves
Changes to Committed Fund Balance – All reserves listed in this policy, with the exception of the PERS restricted reserve, are classified as Committed Fund Balance under GASB Statement No. 54. Committed fund balance is comprised of amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Changes to committed fund balances must be approved by City Council. This policy will be reviewed annually as part of the budget process.

Scope
The General Fund and Capital Funds.

Policy
To maintain sufficient committed and unassigned fund balance (General Fund only) in each fund for the ability to meet the following economic uncertainties:

The primary goal of establishing this secondary trust is to ensure that the City can continue to provide its employees with the retirement benefits they have earned while maintaining fiscal responsibility. By using a more conservative rate for calculating 671
CC 11-19-2024
671 of 784
Attachment D
contributions, the City can better anticipate and manage pension costs and mitigate potential negative impacts on the City's budget.

Deficits Funding -- $31,000,000 and represents the sum of projected deficits in the most recent (Fiscal Year 2024-25) General Fund forecast in the adopted budget. These funds may only be used to fund deficits should they materialize.

Unassigned – $500,000 and represents 1% of the total general fund operating budget. This assignment may change from year to year based on budgeted general fund expenditures.
 Absorb unanticipated operating needs that arise during the fiscal year that were not anticipated during the budget process
 Absorb unexpected claims or litigation settlements
Capital Improvement – $5,000,000 and represents average dollars spent for capital projects in the last three fiscal years. This assignment may change from year to year based on actuals dollars spent on capital projects and anticipated future capital project needs.  Meet future capital project needs so as to minimize future debt obligations The City shall not use fund balances/reserves in lieu of revenues to pay for ongoing expenses except as specifically provided in the City’s reserve policy.

The chart below summarizes reserve policy levels as described above:
672
CC 11-19-2024
672 of 784
Attachment D
Funding
Priority Reserve
Reserve
Level1 Escalator2 Description

GENERAL FUND
1 Economic
Uncertainty
Reserve
$18,000,000
GF Budgeted
Operating
Expenditures3 GF
Budgeted
Revenue4
For economic
downturns and
major revenue
changes.
2 PERS $19,088,859
Budgeted
Citywide
Retirement Costs
For pension costs.
3 Sustainability
Reserve $127,891 GF Budget Revenue4
For future
sustainability
projects/programs.
4 Deficit Funding $31,000,000
None, will be
updated as
forecast is
updated
To fund structural
deficits in the 10
year forecast.
5 Unassigned $500,000
Budgeted GF
Operating
Expenditures3
For mid-year
budget
adjustments and
redeployment into
the five year
budget.

CAPITAL PROJECTS FUNDS
6 Capital
Improvement $5,000,000 None
Reserves set aside
for future capital
projects.
1 As of June 30, 2023
2 Rounded to the nearest hundred thousand
673
CC 11-19-2024
673 of 784
Attachment D
3 Excludes Transfers Out
4 Excludes the use of reserves
Changes to Committed Fund Balance – All reserves listed in this policy, with the exception of the PERS restricted reserve, are classified as Committed Fund Balance under GASB Statement No. 54. Committed fund balance is comprised of amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. Changes to committed fund balances must be approved by City Council. This policy will be reviewed annually as part of the budget process.

Excess – Funding of these reserves will come generally from one-time revenues, annual net income, and transfers from other reserves that exceed policy levels. They will be funded in the following priority order with any remaining funds to be placed in the Capital Reserve:
1) Economic Uncertainty Reserve
2) PERS
3) Sustainability Reserve
4) Unassigned
Revised November 19, 2024
674
CC 11-19-2024
674 of 784
Detailed Allocation Plan for Future Use Attachment E
Area of Focus Guiding Principal Department Description Allocation One‐Time
Allocation
Ongoing
Unfunded Need
FY24‐25 Final
Budget (Y/N)
Investing in Employees One‐time funds with long term
efficiencies
I&T One‐time costs for the acquisition of a new Enterprise Resource Planning (ERP) software (Finance and HR system) ‐ includes system purchase and consulting services.

The City’s current system is scheduled for discontinuation on Tyler’s roadmap, and transitioning to a new system will provide additional operational efficiencies.

Additional funding request for this item are expected to be included in FY 2025‐26 Budget that include additional limited term staffing to assist with implementation and, increased annual costs of approximately $250,000. Those are not requested now as they will not be necessary in the current fiscal year.
$769,166 $0 Y
Enhancement Limit ongoing expenses Admin Services New limited term position, Grants Analyst to assist the City with apply for, tracking and reporting grants and some purchasing support. This position is expected to be funded via a donation.
$0 $132,177 N
Enhancement Limit ongoing expenses Community Development Add new classification of Code Enforcement Supervisor while deleting an existing vacancy through internal promotion. No new position is necessary. This division manager position is needed for operational and organizational purposes. The department has seen an increase in community inquiries, complaints, and investigations which resulted in Sr. Code Enforcement officers taking on additional responsibilities. Organizational improvements are necessary to maintain service level to the community and further improve efficiency. $0 $23,530 N
Enhancement Limit ongoing expenses I&T Add new classification of Senior Business Systems Analyst. The department will promote from within and there is no new position requested. This classification is necessary to fill the gap left by the unfilled GIS Manager position due to budget cuts. $0 $17,332 N
Investing in Employees One‐time funds with long term
efficiencies
Citywide One‐time payment to CalPERS retirement system toward the City’ unfunded actuarial liability.
$10,000,000 $0 N
Investing in Employees Limit ongoing expenses Citywide Adds back reduced training budgeted to approximately 50% of the reduction amount. $0 $175,500 N Enhancement One‐time Funds Admin Services Citywide Classification and Compensation Study. The last full study was completed in 2018. This study would look at classifications citywide ensuring all employees are working in and compensated for the work they perform in the appropriate classification . $200,000 $0 N
Enhancement One‐time Funds Admin Services Consultant to draft training presentations for citywide staff including contract development, contract negotiations, Request for Proposal use. As recommended in procurement internal audit and to continue with updates to the procurement processes. $20,000 $0 Y
Enhancement Limit ongoing expenses Admin Services Diversity Equity and Inclusion (DEI) funding for up to 5 city sponsored events $0 $5,000 N Enhancement One‐time Funds I&T The I&T Department is requesting $180k for Phase 1 and $100k for Phase 2 of a project to enhance physical security and access controls at City of Cupertino facilities.

Phase 1 involves electrifying 24 doors, adding access control readers, and installing multi‐ lens security cameras at key locations. These upgrades will strengthen security by automating access controls, enhancing monitoring, and reducing reliance on physical keys, which do not provide entry or exit tracking.

Phase 2 will focus on achieving full integration of physical security systems, including alarms, cameras, door readers, and log management. This phase will involve working with partners for advanced configuration, system integration, and comprehensive testing to ensure all components work seamlessly together. The main objectives of the project, including complete system integration, will only be fully realized with the completion of Phase 2.
$280,000 $0 N
Enhancement One‐time funds with long term
efficiencies
Public Works Funds will be used for an analysis to help develop a strategy that optimizes staff levels, organizational structure, and job classifications to help retain qualified staff and ensure that core services and operational requirements are being delivered in a timely and cost‐ effective manner.
$66,000 $0 N
$11,335,166 $353,539
675
CC 11-19-2024
675 of 784
RESOLUTION NO. 24-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2024-25 BY

APPROPRIATING, TRANSFERRING, AND UNAPPROPRIATING MONIES

FOR SPECIFIED FUNDS
WHEREAS, the orderly administration of municipal government depends on a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and
WHEREAS, accomplishing City Council directives, projects and programs, and performing staff duties and responsibilities likewise depends on the monies available for that purpose; and
WHEREAS, the City Manager has determined that the balances from the funds specified in this resolution are adequate to cover the proposed amended appropriations, and therefore recommends the fund reallocations described herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the recommended fund reallocations and ratifies the attached amended appropriations as set forth in Exhibit A [Options B/ Option C].

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of November 2024, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:
676
CC 11-19-2024
676 of 784
Resolution No. __________________

Page 2 ends

SIGNED:
________
Sheila Mohan, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Kirsten Squarcia, City Clerk
________________________
Date
677
CC 11-19-2024
677 of 784
Attachment F
Option B
Exhibit A
Appropriation
Amendment by Fund
Appropriation
Amendment
Revenue
Amendment
Fund Balance
(Use of)
General Fund $43,500,000 $ ($43,500,000)
Special Revenue Funds $- $- $-
Capital Projects Funds $- $31,811,295 $31,811,295
Enterprise Funds $- $- $-
Internal Service Funds $280,000 $280,000 $0
Total Appropriation
Amendment All Funds $43,780,000 $63,091,295 ($11,688,705) Option C
Exhibit A
Appropriation
Amendment by Fund
Appropriation
Amendment
Revenue
Amendment
Fund
Balance
(Use of)
General Fund $74,500,000 $0 ($74,500,000)
Special Revenue Funds $- $- $-
Capital Projects Funds $- $62,811,295 $62,811,295
Enterprise Funds $- $- $-
Internal Service Funds $280,000 $280,000 $0
Total Appropriation
Amendment All Funds $74,780,000 $63,091,295 ($11,688,705) 678
CC 11-19-2024
678 of 784
Assistant Director of Administrative Services
Definition
Under general direction of the Director of Administrative Services, the Assistant Director plans, manages, organizes, directs the functions and activities of the Finance, Purchasing and Budget divisions. This position is responsible for general accounting, financial reporting, budget development, business licensing, short- and long-term fiscal services and purchasing activities; and performs related work as required.

Class Characteristics
This is a management classification with responsibility for directing, planning and organizing activities and services of the Department which may include budget and analysis, treasury, financial management, accounting, revenue and payroll. This position has responsibility for managing departmental operations and assisting in the fiscal management of the City. This class is further distinguished from the Director of Administrative Services in that the latter has overall responsibility for all functions of the Department and for developing, implementing, and interpreting public policy.

Supervision Received and Exercised
Receives general direction from the Director of Administrative Services. May exercise direct and general supervision over professional, technical, and administrative support staff.

Typical Job Functions
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.

Plan, manage and direct the daily operations of the Finance, Purchasing and Budget Divisions.

Develop and implement finance and budget strategic plans, policies, procedures and standards.

Oversees the treasury function, including managing the City’s investment strategy and portfolio.

Oversees the City’s debt issuance and management policy.

Assist the Human Resources Division in preparing calculations for proposals involved in labor negotiations and analyzing fiscal impacts to the budget.

Plan, organize, direct and coordinate the City's budget processes and prepare the City's budget and various non-departmental budgets.

Forecast revenues and expenditures for the City's General Fund and other funds using trend analysis or other appropriate econometric models/softwares.
679
CC 11-19-2024
679 of 784
Assistant Director of Administrative Services

Page 2 of 5 ends

Prepare and update the 10-year financial forecast and other long-term projections.

Work and develop collaborative working relationships with other City departments and other agencies.

Prepare financial and budgetary materials for City Manager and Council Budget Review Sessions, public hearings, and Council meetings; participates in the development of financial planning strategies; directs and/or performs a compilation of data.

Develop budget policy and formulate recommendations to the Director and assist in the implementation of the budget policy and other Department policies.

Coordinate the integration of budget amendments/transfers in the budget system, revenue, and expenditure analysis, and quarterly budget status reports.

Develop procedures to facilitate monitoring revenues, expenditures, encumbrances, and capital projects in compliance with federal, state, and municipal ordinances.

Review and approve, within delegated authority limits, requests for budgetary changes and contractual services by City departments' staff and/or directors during the fiscal year.

Conduct complex budgetary and financially oriented research, studies, and reports.

Work with external and internal audit staff in reviewing and analyzing financial records, operational systems, and controls.

Work with department heads and their designees to identify and solve budget issues.

Assist department and division heads in developing, presenting, and amending their budgets.

Direct staff activities related to budget preparation, completion, evaluation, and ongoing review.

Supervise staff activities related to investment, debt management, and risk management.

Develops and standardizes procedures and methods to improve and continuously monitor the efficiency and effectiveness of assigned programs, service delivery methods, and procedures; assesses and monitors workload, administrative and support systems, and internal reporting relationships; identifies opportunities for improvement and makes recommendations to the Director of Administrative Services.

Hire, train, motivate and evaluate staff. Assign work activities, projects, and programs; monitor work flow; and review and evaluate work products.

Provides highly complex staff assistance to the Director of Administrative Services; develops and reviews staff reports and other necessary correspondence related to assigned activities and services; presents reports to Council, various commissions, and committees.

Act as Director of Administrative Services Director as assigned. 680
CC 11-19-2024
680 of 784
Assistant Director of Administrative Services

Page 3 of 5 ends

Performs other duties as assigned.

Qualifications
Knowledge of:

Principles and practices of governmental accounting and municipal budget development and management (operating and CIP).

Audit, revenue and expenditure forecasting, financial analysis and internal financial control processes.

Investment of public funds; debt management; and financial analysis, including revenue forecasting and long-range financial planning.

Principles and practices of financial policy development and implementation, revenue forecasting, financial control systems and methodology, laws, rules and regulations that apply to local government fiscal operations, sources of revenue, and expenditures typical of local government.

Research methods and statistical analysis.

Complex spreadsheets and database applications.

Business computer user and database applications and automated financial management systems.

English usage, grammar, spelling, vocabulary, and punctuation.

Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.

General operations, public policy, and fiscal complexities of local government.

Ability to:

Manage and monitor the City’s budget process.

Prepare comprehensive, concise and accurate budget, accounting, purchasing, financial and statistical reports.

Communicate complex financial information, analyze problems, and prepare effective written and oral reports.

Demonstrate a high level of proficiency in various software applications, including integration of the budget and publication software, advanced level spreadsheets, databases, and presentation software programs.

Effectively representing the City in contacts with governmental agencies, community groups, and various business, professional, educational, regulatory, and legislative organizations.

Prepare and present clear, complete, accurate, concise, and logical written and oral reports.

Work effectively in time-sensitive situations and meet deadlines; coordinate multiple projects and complex tasks simultaneously.

Conduct complex research projects, evaluate alternatives and present sound recommendations 681
CC 11-19-2024
681 of 784
Assistant Director of Administrative Services

Page 4 of 5 ends

Plan, organize, assign, review, and evaluate the work of staff; train staff in work procedures.

Interpret, analyze, apply, explain, and ensure compliance with Federal, State, local and department policies, procedures, laws, and regulations.

Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience
Any combination of experience and training that would provide the required knowledge and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to graduation from an accredited four-year college or university with major coursework in accounting, finance, business or public administration, or a related field and five (5) years of management and/or administrative budgeting, accounting or related finance field experience, including at least three years of experience performing complex financial and budgetary analysis in a supervisory role. Possession of a Master’s degree in Public/Business Administration or finance degree is highly desirable. A CPA is preferred.

Physical Demands
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard, typewriter keyboard, or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information.

Environmental Elements
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances.

Working Conditions
May be required to attend Commission, Committee, and Council meetings outside of regular work hours.

FLSA: Exempt
Est. 11/2024
682
CC 11-19-2024
682 of 784
Grants Management Analyst
Definition
Under general supervision, provides critical administrative, budgetary, and grant-related support across various City departments; analyzes programmatic practices, policies and procedures and conducts in-depth analyses to recommend improvements in program operations; conducts needs analyses, feasibility studies, and evaluations for assigned projects and programs; develops, summarizes, and maintains administrative and fiscal records; collaborates with City staff and external stakeholders to coordinate efforts, manages all aspect of grant applications, including compiling and submitting required information and documents, to ensure grant-funded project requirements are met; and performs related work as required.

Supervision Received and Exercised
Receives general supervision from assigned management personnel. May exercise direct and general supervision over assigned technical and office support staff.

Manages all aspects of grant application submittal, reporting, and ongoing compliance within City policy; collaborates with appropriate staff to identify projects eligible for grant funding; prepares and submits grant applications and tracks project progress with department assistance; coordinates with departments to compile and submit documentation to ensure grant, legal and regulatory compliance while meeting reporting requirements; identifies reporting requirements of the grant including the timelines for submittal (i.e. weekly, monthly, annually); establishes means to collect grant data for accurate financial reporting.

Assists in conducting feasibility studies to determine grant opportunities, using data analysis to recommend potential projects and process improvements; monitors changes in legislation that may affect grant programs; implement changes to maintain compliance and avoid substantial fines or loss of grant award; provides financial administration of grant funds by assisting in the development of project budgets; tracks financial data, ensuring compliance with grantor requirements and regulatory guidelines; ensures reporting for City, state, and federal applicable laws, regulations, and professional accounting practices are met.

Assists in developing goals, objectives, policies, procedures, work standards, methods of operations and administrative control systems; participates in the implementation of these new or revised systems, procedures, and policies; compiles and analyzes data and makes recommendations regarding staffing, equipment, software and facility needs; performs professional-level administrative and programmatic work in such areas as reporting, purchasing, and program evaluation. 683
CC 11-19-2024
683 of 784
Grants Management Analyst

Page 2 of 4 ends

Identify and ensure procurement guidelines and requirements for grant-funded projects align with City policy and procedures and grantor requirements; assists in the preparation of requests for proposals and bids; assists with preparing and submitting City Manager and City Council agenda reports and various other commission, committee, and staff reports, resolutions, ordinances, and correspondence regarding assigned activities; maintains accurate records and files; develops storage of records and retention schedules.

Serves as a primary liaison with employees, public, and private organizations, community groups, and other organizations; provides information and assistance to the public regarding the assigned programs and services; receives and responds to complaints and questions relating to assigned area of responsibility; reviews problems and recommends corrective actions.

Collects, compiles, and analyzes information from various sources on a variety of specialized topics related to programs administered by the position or by management staff including complex financial, budget, or administrative issues or questions; prepares comprehensive technical records to present and interpret data, identify alternatives, and make and justify recommendations.

Performs other duties as assigned.

Qualifications
Knowledge of:

Principles of municipal government management, including grant funding, administration, and disbursement procedures.

Project and program management, analytical methods, and report preparation, particularly in purchasing, personnel, risk management, finance, and budgeting.

Organizational and management practices for developing and implementing policies and procedures.

Basic supervision principles, including work planning, evaluation, and staff training.

Public administration as it relates to program and unit operations.

Research methods, data analysis, and reporting techniques for municipal programs and services.

Federal elective pay provisions and process for applying credits to local government.

Relevant federal, state, and local laws, regulations, and codes.

Public agency budget development, financial management, and contract administration.

Record-keeping practices and modern office methods, including standard computer applications.

Effective communication skills, including grammar and vocabulary.

Strategies for providing excellent customer service to the public, vendors, and City staff. 684
CC 11-19-2024
684 of 784
Grants Management Analyst

Page 3 of 4 ends

Techniques for working effectively with diverse stakeholders, including governmental agencies and community groups.

Ability to:

Research administrative topics like grants, contracts, budgets, and operational alternatives; analyze and present data effectively.

Assist in the development of goals, objectives, policies, procedures and work standards for the department or citywide.

Develop, improve, and implement goals, objectives, policies, and procedures for the department or City.

Train staff in work procedures.

Recommend and implement operational improvements in policies, procedures, and methods.

Prepare clear reports, correspondence, and documentation; organize and maintain record-keeping systems.

Interpret, explain, and ensure compliance with City policies and procedures, complex laws, codes, regulations, and ordinances.

Conduct complex research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.

Represent the City in meetings with government agencies, community groups, and businesses.

Establish and maintain a variety of filing, record-keeping, and tracking systems.

Organize and prioritize a variety of projects and multiple tasks in an effective and timely manner; organize own work, set priorities, and meet critical time deadlines.

Operate modern office equipment and specialized software; communicate clearly in person, by phone, and in writing.

Exercise initiative, sound judgment, and discretion within legal and policy guidelines.

Build and maintain positive relationships with City staff, the public, and external stakeholders.

Education and Experience
Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to graduation from an accredited four-year college or university with major coursework in business administration, public administration, or a related field and one (1) year of responsible administrative experience in municipal government. Grant management experience desirable.

Licenses and Certifications
Possession of, or ability to obtain, a valid California Driver’s License by time of appointment. 685
CC 11-19-2024
685 of 784
Grants Management Analyst

Page 4 of 4 ends

Physical Demands
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; to operate a motor vehicle and to visit various District and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard, typewriter keyboard, or calculator and to operate standard office equipment.

Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects up to 25 pounds.

Environmental Elements
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances.

FLSA: Exempt
Est. 10/2024
686
CC 11-19-2024
686 of 784
Code Enforcement Supervisor
Definition
The Code Enforcement Supervisor plans, organizes, directs, and coordinates the activities of the Code Enforcement Division within the Community Development Department, including enforcing City codes and ordinances related to the use, maintenance, and safety of land and structures, coordinating code enforcement activities with other divisions, departments, and public agencies; and providing guidance and assistance to the Community Development Director and/or Building Official on Code Enforcement matters. The incumbent in this position will manage all day-to-day program activities and will be responsible for the daily supervision of the Code Enforcement Division staff. This working manager will also spend time in the field to successfully implement the City’s Code Enforcement-related objectives.

Class Characteristics
This classification supervises Code Enforcement Officers under general supervision of the Building Official or the Community Development Director. This classification coordinates activities in the receipt, investigation, and enforcement of the municipal code and other California State codes related to zoning, building and fire life safety. This classification also evaluates existing policies and procedures and recommends necessary modifications to ensure the City’s current informational handouts are up to date and consistent with State regulations. This classification is also distinguished from the Senior Code Enforcement Officer classification by the responsibility assumed as a working supervisor in supervising and coordinating assignment and personnel and providing technical guidance to other Code Enforcement staff.

Supervision Received and Exercised
Receives direction from the Community Development Director and/or Building Official. This classification exercises direct supervision over professional and technical Code Enforcement staff.

Oversees and participatesin the development of the code enforcement work plan; assigns work activities, projects and programs; monitors workflow; reviews and evaluates work products, methods and procedures; prepares progress reports.

Conducts field inspections to determine compliance and manages more complex, controversial and time sensitive enforcement cases.

Receives, records, responds to, and investigates complaints from the public and staff regarding violations of municipal, building, and zoning codes and ordinances such as noise, graffiti abatement, property maintenance, animal nuisance, parking enforcement, sign enforcement, and traffic control; documents 687
CC 11-19-2024
687 of 784
Code Enforcement Supervisor

Page 2 of 5 ends

violations; researches ownership records, prior complaints, municipal codes and ordinances, and state regulations to establish whether a violation has occurred.

Performs field inspections and investigations of residential, industrial, and/or commercial properties to determine compliance with applicable codes, laws, specifications, and conditions of approval. Perform inspections during special events and/or special target enforcement areas.

Operates and maintains a variety of tools, equipment, and vehicles in the enforcement of State and City codes.

Reviews planning entitlement conditions of approval, conduct annuals reviews, ensures compliance with environmental mitigation measures researches and prepares technical and administrative reports; prepares written correspondence.

Develops and implements code enforcement division goals, objectives, policies, and procedures.

Plans, organizes and oversees code enforcement activities including field investigations, citation issuance, and case closure or resolution for commercial, industrial, and residential properties.

May also be required to assist the Sheriff’s Office with various non-enforcement type of duties including, but not limited to, traffic control, animal complaints, massage parlor inspections, lost and found property, and other duties as requested.

Supervise and report on performances metrics for program activities such as volume, case closure rates, response times, etc.

Supervise appropriate abatement actions and coordinates with the City Attorney’s Office to prepare cases for legal action and court testimony.

Participates in the investigation, preparation, and presentation of cases for legal action, and hearings and court activities related to case prosecution.

Participates in activities related to substandard housing investigation, inspections, citation, and compliance.

Provides information and serve as liaison to representatives from state, federal and other local agencies.

Meets with representatives of the community to explain functions, policies, and operations, and to mediate or resolve conflicts and/or respond to questions.

Attends occasional evening meetings and present to City Council and other boards and commissions as needed, and Administrative Hearings.

Prepares public education outreach informational materials related to code enforcement functions utilizing computer and graphic programs.
688
CC 11-19-2024
688 of 784
Code Enforcement Supervisor

Page 3 of 5 ends

Supervises, trains, mentors, and evaluates assigned personnel, and providestraining to code enforcement staff to ensure uniform application of policies and procedures, and governing codes, rules, and regulations.

Represents the division and department to outside agencies and organizations; participates in outside community and professional groups and committees; provides technical assistance as necessary.

Builds and maintains positive working relationships with colleagues, other City employees and the public using principles of good customer service.

Knowledge of:

Legal procedures involved in the enforcement of building codes and ordinances.

Principles of supervision and training.

English usage, grammar, spelling, vocabulary, and punctuation.

Applicable Federal, State, and local laws, rules, regulations, ordinances, standards, and procedures relevant to code enforcement.

Principles, practices, methods, and techniques of code violation research, investigation, and compliance.

Methods and procedures used in code compliance including citation issuance procedures.

Safe and efficient work practices related to field inspection and enforcement duties.

Practices for documenting inspections, correcting violations, and carrying through on compliance procedures.

Basic requirements of zoning and building related codes, ordinances, and regulations.

Legal descriptions and boundary maps of real property and legal terminology as used in code compliance.

Occupational hazards and standard safety practices necessary in the area of code compliance.

Research and report writing methods, techniques, and procedures.

Principles and procedures of record-keeping and preparation of correspondence and presentations.

Windows, Outlook, Word, Excel, and PowerPoint software applications.

Permitting/Inspection/Code Enforcement software and other job-related computer programs.

Modern office practices, methods, and radio and computer equipment and applications related to the work.
689
CC 11-19-2024
689 of 784
Code Enforcement Supervisor

Page 4 of 5 ends

Techniques for effectively representing the City in contacts with governmental agencies, community groups, various business, professional, and regulatory organizations, and with property owners, developers, contractors, and the public.

Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.

Ability to:

Work independently and schedule and coordinate own workload, set priorities, and meet critical time deadlines; on a continuous basis, sit at a desk for short periods of time.

Read, explain, and enforce codes, ordinances, policies and regulations, identify and respond to issues and concerns of the public, City staff, and other stakeholders.

Investigate and document violations, enforce codes and ordinances, determine and implement an appropriate course of action including, but not limited to issuing warnings and/or citations.

Apply, explain, and ensure compliance with applicable Federal, State, and local codes, ordinances, policies and regulations.

Respond to inquiries, complaints, and requests for service in a fair, tactful, and timely manner.

Effectively represent the City in meetings with governmental agencies, community groups, and various businesses, professional, and regulatory organizations and in meetings with individuals.

Prepare and present clear, concise and comprehensive verbal and written reports, correspondences, and other written materials.

Maintain accurate logs, records, and written records of work performed.

Analyze complex situations, problems and data, and use sound judgment in making decisions.

Safely and effectively use and operate tools, equipment, and vehicles required for the work.

Operate modern office equipment and permitting, inspection, code enforcement software applications programs.

Intermittently stand, walk, bend, kneel and squat while conducting inspections, use telephone, and write or use a keyboard to communicate through written means.

Lift or carry weight of 30 pounds or less.

Build and maintain positive working relationships with co-workers, other City employees and the public using principles of quality customer service.

Use English effectively to communicate in person, over the telephone, and in writing. 690
CC 11-19-2024
690 of 784
Code Enforcement Supervisor

Page 5 of 5 ends

Use tact, initiative, prudence, and independent judgment within general policy and legal guidelines in politically sensitive situations.

Interpret and train code enforcement staff on Federal, State, and local codes, ordinances, policies and regulations.

Equivalent to a Bachelor's degree from an accredited college or university with major course work in public administration, planning, public policy, urban studies, land development or a related field; and, Five years of increasingly responsible experience in related municipal code enforcement dealing with the public. Minimum of one year of supervisory or lead responsibility.

Licenses and Certifications
Possession of a valid California Driver’s License and certification through the California Association of Code Enforcement Officers (CACEO). When assigned to positions working directly with the Sheriff’s Office, Livescan and Department of Justice (DOJ) training will be required and provided.

Physical Demands
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; and to inspect various City sites, including traversing uneven terrain, climbing ladders, stairs, and other temporary or construction access points. Must operate a motor vehicle. Vision to read printed materials and a computer screen, and make inspections. Hearing and speech to communicate in person, before groups, and over the telephone or radio. This is partially an office and partially a field operations classification. Standing for prolonged periods of time and frequent walking between work areas is required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification bend, stoop, kneel, reach, and climb to perform work. Employees must possess the ability to lift, carry, push, and pull materials and objects weighing up to 30 pounds, or heavier weights with the use of proper equipment.

Environmental Elements
Employees work partially in an office environment with moderate noise levels and controlled temperature conditions, and partially in the field and are occasionally exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, and hazardous physical substances and fumes. Employees may interact with upset staff and/or public and private representatives and contractors in interpreting and enforcing departmental policies and procedures.

Working Conditions
May be required to work various shifts during emergencies or special occasions on evenings, weekends, and holidays.

FLSA: Exempt
Est. 11/2024
691
CC 11-19-2024
691 of 784
Senior Business Systems Analyst
Definition
Under General supervision, performs advanced systems maintenance, operational duties, and modification of application systems. Serving as a key liaison between system users, information technology staff, vendors, and service providers, the role requires a high level of expertise in providing technical and analytical support while delivering comprehensive training to system users. Responsible for complex system administration functions, ensuring security and optimizing the effective operation of diverse automated files, records, and databases. Additionally, this position serves in a key role, managing, leading, planning, executing, and completing information technology services projects both interdepartmental and citywide. initiatives.

Class Characteristics
This is a highly specialized position that combines deep technical expertise with strategic business acumen.

The incumbent will possess a comprehensive understanding of business systems architecture, data analysis, and project management. This position is responsible for the conceptual and operational facets of adapting information systems to business needs and effectively communicating those needs to information system professionals. This position performs in-depth review and analysis of various information technology strategies to automate operational processes and resolve organizational issues.

Incumbents take a key leadership role in strategic decision-making processes, with a significant impact on the business’s technological direction. They are expected to provide leadership and guidance to other analysts and work closely with senior management. Additionally, the incumbent guides teams of analysts and collaborates with stakeholders across the organization to ensure alignment with business strategies.

This classification is distinguished from Innovation Technology Manager, as the latter assumes full management responsibility
The Senior Business Systems Analyst differs from the Business Systems Analyst by applying specialized expertise to tackle complex, often undefined assignments involving multiple teams or departments. This role leads or supports concurrent projects across diverse applications and business domains, managing multi-stakeholder work streams in various technical environments.

Supervision Received and Exercised
Works under the general direction of I&T Manager or department head.

Exercised: Provides leadership and guidance to a team of business analysts and technical staff. May directly supervise junior analysts, offering mentorship and professional development support.

Essential Duties
Management retains the right to add, modify, change, or rescind work assignments and make reasonable accommodations for qualified employees to perform job functions. 692
CC 11-19-2024
692 of 784
 Conducts various system user and work groups, identifying complex user needs and addressing operational, programmatic, and/or regulatory changes affecting application requirements and related issues.
 Leads the modification of existing systems or implements new systems, developing, writing, and disseminating procedures that leverage new or modified system applications. Evaluates system modifications in response to operational, program, and/or regulatory changes.  Develops internal procedures used with business systems and team enterprise standards.

Maintains ongoing documentation of the appropriate business solutions for various reporting or data extract needs.
 Responds to requests for assistance related to department and/or program systems and software applications. Determines the severity of problems, resolving them or referring to appropriate personnel or vendors for resolution.
 Directs the work of software vendors to identify and resolve intricate programming and operational problems. Coordinates the scheduling of corrective patches and upgrades between vendors and staff, interacting with vendors, external agencies, auditors, or other staff to obtain requested data or special reports.
 Undertakes advanced software application research, development, conversion, installation, and maintenance projects through the entire project life cycle. This includes conception and initiation, definition and planning, launch and execution, monitoring and controlling, and close-out.  Facilitates and conducts advanced business process redesign or technical design sessions and/or focus groups for the design and implementation of new processes or systems.  Develops consultant requests for proposals and qualifications for professional services. Evaluates proposals and recommends project awards. Develops and reviews contract terms and amendments, ensuring contractor compliance with City and department standards and specifications, as well as time and budget estimates.
 Creates analytical applications and reports based on detailed user specifications.  Provides analytical and technical support/coaching for requests, projects, or initiatives.  Stays abreast of new trends and innovations in technology related to information technology operations. Researches, recommends, and evaluates vendor solutions and technologies.

Implements improvements and collaborates with staff to maintain, revise, or enhance operations and systems.
 Authors and maintains user and technical operating instructions and documentation. Prepares training materials and conducts formal and informal training programs on the use and operation of applications, advising on best practices.
 Provides continuous training and mentoring to lower-level staff in areas of responsibility.  Performs other duties as assigned.

Knowledge of:
 Principles and practices of excellent customer service.  Principles and practices of project management, identifying technology needs and issues, researching, and evaluating technology, applications, and the most effective courses of action, and implementing solutions.
 Principles and practices of relational database management and systems integration analysis and programming.
693
CC 11-19-2024
693 of 784
 Advanced principles and practices of information technology applications, systems, and infrastructure analysis, design, and management.
 Principles and practices of programmatic analysis and report preparation.  Principles and practices of vendor relationship management.  Department policies, programs, and practices.
 Complex citywide and interdepartmental information technology services projects.  The organization, operation, and functions of the department as necessary to assume assigned responsibilities and to determine the appropriate point of escalation.  Advanced principles and practices of Business Intelligence (BI), reporting, data warehousing and scripting.
 Applicable federal, state, and local laws, regulatory codes, ordinances, and procedures relevant to the assigned area of responsibility.

Possession of a bachelor's degree from an accredited college or university in Computer Science, Information Technology, Science, Business, or a related field and six (6) years of experience with report writing tools and systems, including three (3) years at a level comparable to the City's Business Systems Analyst classification. Alternatively, relevant analytical, administrative, lead, supervisory, or management experience that includes interpreting rules and regulations, gathering data, formulating recommendations, and report writing may substitute for education on a year-for-year basis, combined with eight (8) years of experience with business intelligence tools creating analytical applications, scripts, and reports.

Licenses and Certifications
Possession of a valid California Class C Driver’s License is required at time of hiring and for duration of employment.

Working Conditions
May be required to attend Commission/Committee/Council or community events meetings outside of regular work hours.

Physical Demands
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer. Vision to read printed materials and a computer screen, and hearing and speech to communicate in person and over the telephone. Standing in and walking between work areas is frequently required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification frequently bend, stoop, kneel, and reach to perform assigned duties, as well as push and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects up to 25 pounds with the use of proper equipment.
694
CC 11-19-2024
694 of 784
Environmental Elements
Employees work in an office environment with moderate levels, controlled temperature conditions, and no direct exposure to hazardous physical substances.

FLSA: Exempt
Est. 11/2024
695
CC 11-19-2024
695 of 784
1 City of Cupertino
UNREPRESENTED EMPLOYEES’ 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 either as management or confidential positions shall be eligible for participation under the Unrepresented Employees 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.

It is the stated purpose of this Compensation Program to give recognition to and to differentiate those eligible employees from represented employees who achieve economic gain and other conditions of employment through negotiation. It is the intent that through this policy and those which are adopted or as may be modified or rescinded from time to time such recognition may be given.

Eligibility for inclusion with this Compensation program is limited to persons holding positions as management or confidential employees as defined under section 2.52.290 of the Cupertino Municipal Code. These are as designated by the Appointing Authority and may be modified as circumstances warrant.

Although subject to change in accordance with provision of the Personnel Code, the positions in the following classifications have been designated as unrepresented.

MANAGEMENT AND CONFIDENTIAL CLASSIFICATIONS:

Classification Title
Accountant I
Accountant II
Accounting Technician
Administrative Assistant
Assistant City Attorney
Assistant City Manager
Assistant Director of Administrative Services
Assistant Director of Community Development
Assistant Director of Public Works
Assistant Director of Parks and Recreation
Assistant to the City Manager
Budget Manager
Building Official
Business Systems Analyst/Program Manager
Capital Improvement Program Manager
Chief Technology Officer/Director of Information Services (Department Head) City Clerk
696
CC 11-19-2024
696 of 784
2 City Engineer
Code Enforcement Supervisor
Community Relations Coordinator
Deputy Building Official
Deputy City Attorney
Deputy City Clerk
Deputy City Manager
Director of Administrative Services (Department Head)
Director of Community Development (Department Head)
Director of Parks and Recreation (Department Head)
Director of Public Works
Economic Development Manager
Emergency Services Coordinator
Environmental Programs Manager
Executive Assistant to the City Attorney
Executive Assistant to the City Manager
Finance Manager
GIS Coordinator
GIS Program Manager
Grants Management Analyst
Human Resources Analyst I
Human Resources Analyst II
Human Resources Assistant
Human Resources Manager
Human Resources Technician
Information Technology Assistant
Innovation and Technology Manager– Applications
Innovation and Technology Manager - Infrastructure
Legal Services Manager
Management Analyst
Network Specialist
Park Restoration and Improvement Manager
Permit Center Manager
Planning Manager
Public Information Officer
Public Affairs Manager
Public Works Projects Manager
Public Works Supervisor
Purchasing Manager
Recreation Manager
Recreation Supervisor
Senior Accountant
Senior Assistant City Attorney
Senior Business Systems Analyst
Senior Civil Engineer
697
CC 11-19-2024
697 of 784
3 Senior Management Analyst
Senior Public Works Project Manager
Service Center Superintendent
Special Project Executive
Transportation Manager
Web Specialist
In the event of any inconsistency between the Compensation Program and any Employment Contracts, the provisions of the Employment Contract and any amendments thereto control.

Adopted by Action of the
City Council, April 1, 1974
Revised 10/74, 3/78, 6/81, 6/82, 7/85, 7/87, 1/89, 7/90, 4/91, 5/91, 7/92, 6/95, 6/96, 7/99, 6/02, 7/04, 6/05, 04/07, 7/10, 10/12, 12/12, 7/13,11/13,12/13,3/14, 7/14, 11/15, 6/16, 10/16, 11/16, 6/17, 10/17, 7/19, 6/22, 8/22, 3/23, 11/23, 11/24 698
CC 11-19-2024
698 of 784
4 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 2

SALARY SCHEDULE

AND OTHER SALARY RATES
It is City of Cupertino policy that eligible persons under this Compensation Program shall be compensated for services rendered to and on behalf of the City on the basis of equity of pay for duties and responsibilities assigned, meritorious service and comparability with similar work in other public and private employment in the same labor market; all of which is contingent upon the City’s ability to pay consistent with its fiscal policies.

Retroactive to the first full pay period after July 1, 2023, a 3.5% salary increase will be added to the salary range of each classification in this unit. There shall be no further salary increase for FY24/25.

See Attachment A for a list of paygrades.

Adopted by Action
of the City Council
April 1, 1974
Revised 8/78, 7/79, 6/80, 7/92, 6/95, 10/12, 7/13, 10/16, 7/19, 8/22, 11/23 699
CC 11-19-2024
699 of 784
5 City of Cupertino
UNREPRESENTED EMPLOYEES’COMPENSATION PROGRAM
Policy No. 3

TRAINING AND CONFERENCES
I. POLICY
A. Management Personnel
It is City of Cupertino policy that eligible persons under this Compensation Program shall be reimbursed or receive advances in accordance with the schedules, terms and conditions as set forth herein for attendance at conferences, meetings and training sessions as defined below for each. It is the intent of this policy to encourage the continuing education and awareness of said persons in the technical improvements and innovations in their fields of endeavor as they apply to the City or to implement a City approved strategy for attracting and retaining businesses in the City. One means of implementing this encouragement is through a formal reimbursement and advance schedule for authorized attendance at such conferences, meetings and training sessions.

B. Non-Management Personnel
When authorized by their supervisor, a non-management person may attend a conference, meeting or training session subject to the stated terms and conditions included herein for each with payment toward or reimbursement of certain expenses incurred as defined below for each.

II DEFINITIONS
A. Conferences
A conference is an annual meeting of a work related organization the membership of which may be held in the name of the City or the individual.

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. Meetings
A “meeting” shall mean a convention, conference, seminar, workshop, meal, or like assembly having to do with municipal government operations. An employee serving on a panel for interviews of job applicants shall not come under this definition. 700
CC 11-19-2024
700 of 784
6 D. Training Session
A training session is any type of seminar or workshop the attendance at which is for the purpose of obtaining information of a work related nature to benefit the City’s operations or to enhance the attendee’s capabilities in the discharge of assigned duties and responsibilities.

III REIMBURSEMENT AND ADVANCE PAYMENT SCHEDULE
A. Intent
This schedule is written with the intent that the employee 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 that paying for a taxi or airport shuttle, then the employee 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; or 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.

B. Registration
Registration fees for authorized attendance at a meeting or training session will be paid by the City.

C. 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.

Reimbursement or advances for use of a personal automobile on City business within a local area will not be made so as to supplement that already being paid to those persons receiving a monthly mileage allowance.

D. Lodging
Hotel or lodging expenses of the employee resulting from the authorized event or activity defined in this policy will be reimbursed or advanced if the lodging and event occurs outside of 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 701
CC 11-19-2024
701 of 784
7 instance, for example, the difference between single and multiple occupancy rates for a room will not be reimbursed.

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 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.

E. Meals

1. With No Conference
Payments toward or reimbursement of meals related to authorized activities or events shall be at the Internal Revenue Service per diem rate for meals and incidental expenses for a given location, as stated by IRS publications 463 and 1542 and by the U.S. General Services Administration. The per diem shall be split among meals as reasonably desired and reduced accordingly for less than full travel days. If per diem is claimed, no receipts are necessary. Alternatively, 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 personnel are attending a conference or other organized educational activity, they shall be reimbursed or advanced for meals not provided by the activity, on a per diem or actual cost basis. The per diem and actual cost rate shall follow the rules described in the meals with no conference paragraph.

F. Other Expenses
Payments toward or reimbursement of expenses at such functions shall be limited to the actual costs consistent with the application of reasonable standards.

Other reasonable expenses related to business purposes shall be paid consistent with this policy.

No payments shall be made unless, where available, receipts are kept and submitted for all expenses incurred. When receipts are not available, qualifying expenditures shall be reimbursed upon signing of an affidavit of expenditure. 702
CC 11-19-2024
702 of 784
8 No payment shall be made for any expenses incurred which are of a personal nature or not within a standard of reasonableness for the situation as may be defined by the Finance Department.

G. Non-Reimbursable Expenses
The City will not reimburse or advance payment toward expenses including, but not limited to:

1. The personal portion of any trip;

2. Political or charitable contributions or events;

3. Family expenses, including those of a partner when accompanying the employee on Cityrelated business, as well as child or pet-related expenses;

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

5. Gifts of any kind for any purpose;

6. Service club meals; of those besides economic development staff;

7. Alcoholic beverages;

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

9. Personal losses incurred while on City business.

IV ATTENDANCE AUTHORIZATION
A. Budgetary Limitations
Notwithstanding any attendance authorization contained herein, reimbursement or advances for expenses relative to conferences, meeting or training sessions shall not exceed the budgetary limitations.

B. Conference Attendance
Attendance at conferences or seminars by employees must be approved by their supervisor.

C. Meetings
Any employee, management or non-management, may attend a meeting when authorized by their supervisor.

D. Training Sessions
703
CC 11-19-2024
703 of 784
9 Any employee, management or non-management, may attend a training session when authorized by their supervisor.

V. FUNDING
A. Appropriation Policy
It shall be the policy of the City to appropriate funds subject to availability of resources.

B. Training Sessions
Payments toward or reimbursement of expenses incurred in attendance at training sessions, will be appropriated annually through the budget process.

VI. DIRECT CASH ADVANCE POLICY
From time to time, it may be necessary for a City employee 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 their supervisor 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 employee’s return on the expense report described in Section VII.

VII. EXPENSE REPORT REQUIREMENTS
All expense reimbursement requests or final accounting of advances received must be approved by their supervisor, on forms determined by the Finance Department, within 30 calendar days of an expense incurred, and accompanied by a business purpose for all expenditures and a receipt for each non- per diem item.

Revised 7/83, 7/85, 7/87, 7/88, 7/91, 7/92, 12/07,7/10
704
CC 11-19-2024
704 of 784
10 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 4

AUTOMOBILE ALLOWANCES AND

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. In many instances the use of personal vehicles is a condition of employment due to the absence of sufficient City owned vehicles for general transportation purposes. It is not intended, however, that such a condition of employment should work an undue hardship. For this reason, the following policies shall apply for mileage reimbursements.

Those persons who occasionally are required to use their personal automobiles for City business shall be reimbursed for such use at an appropriate rate established by the City Council.

Submission of reimbursement requests must be approved by the Department Head.

Employees in the following classifications shall be paid on a monthly basis the following automobile allowance:

Classification Allowance
Director of Administrative Services 300.00
Director of Community Development 300.00
Assistant City Manager 300.00
Director of Parks and Recreation 300.00
Director of Public Works 300.00
Chief Technology Officer/ 300.00
Director of Information Services
Special Project Executive 300.00
City Clerk 250.00
Senior Civil Engineer 250.00
Assistant Director of Public Works 250.00
City Engineer 250.00
Transportation Manager 250.00
Assistant Director of Parks and Recreation 200.00
Public Affairs Manager 200.00
Deputy City Manager 200.00
Recreation Supervisor 200.00
Recreation Manager 200.00
Employees receiving automobile allowance shall be eligible for reimbursement for travel that exceeds two hundred miles round trip.
705
CC 11-19-2024
705 of 784
11 Adopted by Action of the City Council
April 1, 1974
Revised 7/74, 5/79, 6/80, 7/81, 8/84, 7/87, 1/89, 7/90,7/92, 6/96, 8/99, 6/00, 9/01, 1/02, 6/02, 10/07, 7/10, 7/11, 10/12, 12/12, 7/13, 11/15, 10/16, 11/16, 6/17, 7/19, 8/22, 3/23 706
CC 11-19-2024
706 of 784
12 City of Cupertino
UNREPRESENTED EMPLOYEES’ 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 by or through the Department Head 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 Department Head providing the subject matter and material generally contained therein are related to municipal governmental operations.

Adopted by Action of
the City Council
April 1, 1974
Revised
7/92
707
CC 11-19-2024
707 of 784
13 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 6

OVERTIME WORKED
EXEMPT POSITIONS:

Management and non-represented professional employees are ineligible for overtime payments for time worked in excess of what otherwise would be considered as a normal work day or work week for other employees. However, no deduction from leave balances are made when such an employee is absent for less than a regular work day as long as the employee has his/her supervisor’s approval. Nothing in this policy precludes the alternative work schedule, which may include an absence of a full eight hour day, when forty hours have been worked in the same seven day work period.

NON-EXEMPT POSITIONS:

Confidential employees are eligible for overtime or compensation time, at their discretion, for the time worked in excess of 40 hours per week. Nothing in this policy precludes the alternative work schedule, which may include an absence of a full eight hour day, where forty hours have been worked in the same seven day period.

COMPENSATORY TIME OFF
At the employee’s discretion, compensatory time (CTO) may be granted for overtime worked at the rate of time and one-half for each hour worked in lieu of compensation in cash.

Employees, who have previously earned CTO, shall be allowed to schedule CTO at the employee’s discretion provided (1) that prior supervisory approval has been obtained and (2) the request is made in writing.

CTO may be accrued for up to 80 hours per calendar year. Any CTO earned exceeding 80 hours will be paid at the rate of time and one-half. An employee may carry over the unused balance into the next calendar year. Any unused carryover balance will be automatically paid out at the end of the calendar year.

An employee may exercise his/her option twice each calendar year to convert any/or all accumulated compensatory time to cash.
708
CC 11-19-2024
708 of 784
14 STANDBY COMPENSATION
Employees in the classification of Information and Technology Assistant who are required to be available during their off-shift hours for possible recall for emergency service shall be compensated $300.00 per 128 hours. Minimum staffing and skill qualifications for standby assignment shall be determined by the City.

Adopted by Action of
the City Council
April 1, 1974
Revised
6/80, 7/91, 7/92, 6/96, 7/97, 4/07, 7/13, 10/16, 8/22
709
CC 11-19-2024
709 of 784
15 City of Cupertino
UNREPRESENTED EMPLOYEES’COMPENSATION PROGRAM
Policy No. 7

HEALTH BENEFITS PLAN - EMPLOYER CONTRIBUTION
It is the policy of the City of Cupertino to provide group hospital and medical insurance under which employees in Management and Confidential 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.

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 included in the employee’s gross pay.

Effective January 1, 2024, for each participating employee, the City shall contribute the maximum toward premium cost per month for health and dental during the term of this agreement as follows:

January 1, 2024 City Max
Health
Contribution
City Max
Dental
Contribution
City Total Max Contribution
Employee $1,021.41 $126.78 $1,148.19
Employee + 1 $2,042.82 $126.78 $2,169.6
Employee + 2 $2,655.67 $126.78 $2,782.45
Required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee.

Health In-Lieu Payments
City agrees to pay a monthly amount of three hundred seventy-five ($375.00) per month to the employee who can demonstrate that they have equivalent health coverage through their 710
CC 11-19-2024
710 of 784
16 spouse, parent, or other group coverage and who request this cash payment in lieu of health insurance coverage.
*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
September 16, 1974
Revised
7/75, 7/76, 7/77, 8/78, 7/79, 6/80, 6/81, 7/81, 6/82, 7/83, 7/84, 7/88, 7/89, 7/90, 7/91, 7/92, 6/95, 7/97, 7/99, 6/00, 6/02, 7/04, 6/05, 4/07,12/12, 7/13, 10/16, 7/19, 12/19, 8/22 711
CC 11-19-2024
711 of 784
17 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 8

FIXED HOLIDAYS
It is the policy of the City of Cupertino to recognize days of historical and national significance as holidays of the City without loss of pay or benefits. Recognizing the desirable times throughout the year, it is the policy of the City of Cupertino to provide days off in lieu of holidays for management and confidential employees at such times as are convenient for each employee and supervisor, when such policy is compatible with the workload and schedule of the City.

The City provides the following fixed paid holidays for eligible employees covered by this agreement:

1. New Year’s Day

2. Martin Luther King Day

3. Lunar New Year

4. Presidents’ Day

5. Cesar Chavez Day

6. Memorial Day

7. Juneteenth

8. Independence Day

9. Labor Day

10. Veteran’s Day

11. Thanksgiving Day

12. Day Following Thanksgiving

13. Christmas Eve

14. Christmas Day

15. New Year’s Eve
For Calendar Year 2023, Unrepresented and Appointed employees will receive one (1) floating holiday in lieu of Lunar New Year holiday. Said floating holiday is “use it or lose it” and must be used by December 31, 2023. If said floating holiday is not used by the last full pay period in December 2023, it shall be automatically cashed out in the first full pay period in January 2024.

When a holiday falls on a Sunday, the following Monday shall be observed as the non-work day.

When a holiday falls on a Saturday, the previous Friday shall be observed as the non-work day.

FLOATING HOLIDAY
In addition to the paid holidays, employees occupying these positions shall be provided 20 floating hours per calendar year as non-work time with full pay and benefits. Employees may accumulate floating holiday hours up to two times their annual accrual. 712
CC 11-19-2024
712 of 784
18 Adopted by Action of
the City Council
July 7, 1975
Revised 6/80, 6/89, 7/92, 7/99, 7/13, 8/22, 11/23
713
CC 11-19-2024
713 of 784
19 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 9

LIFE, LONG TERM DISABILITY INSURANCE, AND SHORT TERM DISABILITY

INSURANCE
It is the policy of the City of Cupertino to make available group insurance for Management and Confidential employees that will mitigate the personal and family financial hardships resulting from continuing disability that prevents an employee from performing gainfully in his or her occupation. It is further the policy of the City of Cupertino to provide life insurance benefits in an amount of two and one half times the employee’s annual salary to a maximum of $250,000.00.

Employees occupying unrepresented positions may enroll in the disability income program and 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 employees.

Adopted by Action of
the City Council
September 16, 1976
Revised 7/76, 6/80, 6/81, 6/82, 6/92, 10/16
714
CC 11-19-2024
714 of 784
20 City of Cupertino
UNREPRESENTED EMPLOYEES’ 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 management and confidential employees 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 employee and employer 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 individual employees, thereby increasing the ability, to attract and retain competent management and confidential employees.

Employee contributions to such plans may be made in such amounts as felt proper and necessary to the employee. Employer contributions shall be as determined by the City Council.

Adopted by Action of
the City Council
July 7, 1975
Revised 6/80, 7/87, 7/92, 7/99
715
CC 11-19-2024
715 of 784
21 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 11
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CONTRIBUTION
A. Employees hired on or before December 29, 2012 Only:

For employees hired on or before December 29, 2012, the City has contracted with CalPERS for a 2.7% @55 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. For Employees hired by the City of Cupertino on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations Only:

For Employees hired by the City of Cupertino 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 October 1, 2016, 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 new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as Classic members Only:

For new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as classic members as defined by CalPERS, 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
June, 1981
Revised 6/87, 6/89, 7/90, 7/91, 7/92, 6/03, 7/04, 4/07, 7/10, 10/12, 12/12, 7/13, 10/16, 7/19 716
CC 11-19-2024
716 of 784
22 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 12

DENTAL INSURANCE - EMPLOYER CONTRIBUTION
It is the policy of the City of Cupertino to provide dental insurance under which employees in Management and Confidential positions and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees.

The premium cost for the insurance provided by the City shall not exceed $126.78* per month per employee. 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 1, 1983
Revised 7/87, 7/88, 7/89, 7/90, 7/91, 7/92, 6/95, 7/99, 4/07, 10/12, 10/16, 7/19 717
CC 11-19-2024
717 of 784
23 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 13

ADMINISTRATIVE LEAVE
The department heads and executive level staff shall receive eighty (80) hours of administrative leave with pay per year. Unrepresented employees exempt from the provisions of the Fair Labor Standards Act shall receive forty (40) hours of administrative leave with pay per year.

Employees may accumulate administrative leave hours up to two times their annual accrual.

Employees shall be eligible to convert up to 80 hours of administrative leave to pay one time each calendar year.

Adopted by Action of
the City Council
July, 1988
Revised
7/92, 7/97, 7/99, 7/10, 12/12, 10/16, 8/22, 3/23
718
CC 11-19-2024
718 of 784
24 City of Cupertino
UNREPRESENTED EMPLOYEES’ 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 Management and Confidential employees 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
June 17, 1996
719
CC 11-19-2024
719 of 784
25 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 15

VACATION ACCUMULATION
The department heads and executive level staff shall earn vacation hours under the same vacation accumulation schedule as all other employees. Credit shall be provided for previous public sector service time on a year-for-year basis as to annual vacation accumulation. Credit shall only be given for completed years of service. Public service credit shall not apply to any other supplemental benefit. Employee(s) affected by this policy will have the responsibility of providing certification as to previous public sector service.

Benefited full-time employees accrue vacation in accordance with the following schedule.

Benefited employees who work less than a full-time work schedule accrue vacation in accordance with the following schedule on a pro-rated basis.

Service Time Annual Accruals Maximum Accrual
0 - 3 Years 80 Hours 160 Hours
4 - 9 Years 120 Hours 240 Hours
10 – 14 Years 160 Hours 272 Hours
15 – 19 Years 176 Hours 320 Hours
20 + Years 192 Hours 352 Hours
An employee may accrue no more vacation credit than what is listed above.

VACATION CREDITS
The hiring manager, with the approval of the department head and the City Manager, may offer a vacation bank of up to 120 hours of vacation to a prospective candidate in the Unrepresented group. These hours do not vest for payoff purposes if the employee leaves service.

Adopted by Action of the City Council
July 7, 1997
Revised 6/99, 7/10, 12/12, 7/13, 10/16, 3/23
720
CC 11-19-2024
720 of 784
26 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 16

HOUSING ASSISTANCE PROGRAM
Housing assistance may be offered to the department heads pursuant to Resolution No. 15-092.

Adopted by Action of the City Council
July 7, 1997
Revised 7/99, 7/10, 8/12, 10/15
721
CC 11-19-2024
721 of 784
27 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 17
VISION INSURANCE – EMPLOYER CONTRIBUTION
It is the policy of the City of Cupertino to provide vision insurance under which employees and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees.

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 1997
Revised 7/99, 6/02, 6/03, 7/10, 10/12
722
CC 11-19-2024
722 of 784
28 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 18

WORK OUT OF CLASSIFICATION/WORK IN DUAL CLASSIFICATION
Work Out of Classification – Temporary assignment, approved in advance by the department head, to a classification in a higher pay grade shall be compensated at the Step 1 rate of the higher classification or at a rate five (5) percent greater than that of the regular position, whichever is greater, for the number of hours assigned. In order to qualify for out-of-classification pay, an employee shall work a minimum of four (4) hours per day in the temporary assignment.

An employee may be assigned to work out of class in a higher classification when there is a vacant position for which a recruitment is being, or will be, conducted. Out of class assignments may not exceed 960 hours in a fiscal year. Compensation for work performed in an out-of-class capacity is included for purposes of calculating CalPERS compensation, however, this is at the discretion of CalPERS and future changes to CalPERS regulations would supersede the language of this section.

An employee may receive acting pay for working in a higher classification where a vacancy does not exist, in the case of an incumbent being on vacation or leave of absence, or due to the employee being asked to perform higher level work on any other temporary basis. Acting pay is not included for purposes of calculating CalPERS compensation.

The higher rate of pay shall be used in computing overtime when authorized overtime is worked in a non-exempt, out of class or acting work assignment. When a non-exempt employee is working out of class or acting in an exempt position for 20 hours or more in a work week, the employee will be ineligible to receive overtime pay for any and all hours worked in the exempt classification during that work week.

All requests for out of class pay or acting pay must be approved by the Director of Administrative Services or his/her designee.

Adopted by Action of the City Council
October 2016
Revised 7/19
723
CC 11-19-2024
723 of 784
29 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 19

EDUCATION REIMBURSEMENT PROGRAM
It is the intent of the City to recognize the value of continuing education and professional development of its employees; and to adopt an Education Reimbursement Program which will encourage employees to avail themselves of City job related educational opportunities that will advance their knowledge and interests in the direction of their career path. Courses should either: a) maintain or improve job skills in the employee’s current position; b) be expressly required by the City or by law; or c) prepare the employee to become a competitive applicant for a different position with the City.

The Education Reimbursement Program is a benefit to all full time benefited employees who have completed the required probationary period and provides education reimbursement of up to two thousand dollars($2,000) per calendar year for the cost of registration, required textbooks and/or materials and parking. Employees who wish to seek reimbursement from the City for educational program costs shall provide a written request for reimbursement in advance of enrollment to the Human Resources Division. The form provided shall include the type of training, sponsoring organization or institution, meeting times and costs. Human Resources and the employee’s department head will make the determination if the chosen education program is eligible for reimbursement.

No employee shall receive any reimbursement until they have provided satisfactory proof of successful completion of the coursework with a grade of “C” or above, or “Pass” in the case of a Pass/Fail course. Such proof of completion shall be provided within 30 days of the conclusion of the course.

Education reimbursement is a taxable benefit under IRS Code. Education reimbursement will be applied to the calendar year in which the course is passed and satisfactory proof of completion is submitted.

Mandatory or annual coursework, attendance at conferences and training required to maintain job specific certifications or proficiencies are not included in the Education Reimbursement Program.

Adopted by Action of the City Council
July 2019
724
CC 11-19-2024
724 of 784
30 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 20

Programs allowing for preregistration will be reimbursed after completion of the program, including those allowing for or requiring preregistration in the calendar year prior to reimbursement. Reimbursements shall be applied to the year in which they are received.

Benefited employees will also receive a free employee-only annual Cupertino Sports Center membership. Part-time benefited employees will have the annual amount of Recreation Bucks prorated based on number of hours worked. Recreation Bucks are a taxable benefit under IRS Code, and must be used by the employee within the calendar year and are non-transferrable.

City employees are eligible to participate in the City’s wellness program as provided for in the City’s Administrative Rules and Regulations.

Adopted by Action of the City Council
July 2019
725
CC 11-19-2024
725 of 784
31 Listing of Unrepresented Classifications by
Salary Rate or Pay Grades
Effective July 1, 2013 (Res. No. 13-061)
Amended 11/19/ 13 (Res. No. 13-099)
Amended 12/17/13 (Res. No. 13-108)
Amended 3/18/14 (Res. No. 14-130)
Amended 11/3/14 (Res. No. 14-209)
Amended 11/3/2015 (Res. No. 15-099)
Amended 6/21/16 (Res. No. 16-064)
Amended 10/4/16 (Res. No. 16-104 – Not adopted)
Amended 10/18/16 (Res. No. 16-108)
Amended 11/15/16 (Res. No. 16-128)
Amended 6/20/17 (Res. No. 17-056)
Amended 10/17/17 (Res. No. 17-101)
Amended 7/16/19 (Res. No. 19-086)
Amended 11/19/19 (Res. No. 19-140)
Amended 6/7/22 (Res. No. 22-067 on 6/9/22)
Amended 8/16/22 (Res. No. 22-103)
Amended 3/7/23 (Res. No.23-028 )
Amended 11/19/24 (Res. No.24-XXX)
726
CC 11-19-2024
726 of 784
32 ATTACHMENT A

SALARY SCHEDULE
Salary Effective First Full Pay Period of July, 2023 November 19, 2024 Classification Step1 Step2 Step3 Step4 Step5
ACCOUNTANT I $46.60 $48.93 $51.38 $53.95 $56.65
ACCOUNTANT II $51.37 $53.94 $56.64 $59.47 $62.44
ACCOUNTING TECHNICIAN $46.22 $48.53 $50.96 $53.51 $56.18 ADMINISTRATIVE ASSISTANT $40.65 $42.68 $44.82 $47.06 $49.41 ASSISTANT CITY ATTORNEY $92.83 $97.48 $102.35 $107.47 $112.84 ASSISTANT CITY MGR $126.92 $133.27 $139.93 $146.93 $154.27 ASSISTANT DIRECTOR OF ADMIN SERV $90.80 $95.34 $100.11 $105.12 $110.37 ASSISTANT DIRECTOR COMM DEV $90.80 $95.34 $100.11 $105.12 $110.37 ASSISTANT TO THE CITY MANAGER $74.68 $78.41 $82.33 $86.45 $90.77 ASST DIR PUBLIC WORKS ENG $94.47 $99.19 $104.15 $109.36 $114.82 ASST DIR RECREATION COMM SVCS $90.80 $95.34 $100.11 $105.12 $110.37 BUDGET MANAGER $84.91 $89.15 $93.61 $98.29 $103.20
BUILDING OFFICIAL $85.34 $89.60 $94.08 $98.79 $103.73
BUSINESS SYSTEMS ANALYST $65.89 $69.18 $72.64 $76.28 $80.09 CAPITAL IMPV PROGRAM MGR $84.81 $89.05 $93.51 $98.18 $103.09 CHIEF TECHNOLOGY OFFICER $112.10 $117.71 $123.60 $129.78 $136.26 CITY CLERK $75.73 $79.51 $83.49 $87.66 $92.05
CITY ENGINEER $94.47 $99.19 $104.15 $109.36 $114.82
CODE ENFORCEMENT SUPERVISOR $73.82 $77.51 $81.39 $85.46 $89.73

COMMUNITY RELATIONS
COORDINATOR $46.86 $49.21 $51.67 $54.25 $56.96
DEPARTMENT HEAD $112.10 $117.71 $123.60 $129.78 $136.26 DEPUTY BUILDING OFFICIAL $73.82 $77.51 $81.39 $85.46 $89.73 DEPUTY CITY ATTORNEY $66.80 $70.14 $73.64 $77.33 $81.19 DEPUTY CITY CLERK $54.04 $56.74 $59.58 $62.55 $65.68
DEPUTY CITY MANAGER $90.80 $95.34 $100.11 $105.12 $110.37 DIRECTOR OF ADMIN SERVICES $112.10 $117.71 $123.60 $129.78 $136.26 DIRECTOR OF COMM DEVELOPMENT $112.10 $117.71 $123.60 $129.78 $136.26 DIRECTOR OF PARKS AND RECREATION $112.10 $117.71 $123.60 $129.78 $136.26 DIRECTOR OF PUBLIC WORKS $115.38 $121.15 $127.21 $133.57 $140.25 ECONOMIC DEVELOPMENT MANAGER $81.52 $85.59 $89.87 $94.37 $99.08 EMERGENCY SERVICES COORDINATOR $66.26 $69.57 $73.05 $76.71 $80.54

ENVIRONMENTAL PROGRAMS
MANAGER $84.81 $89.05 $93.51 $98.18 $103.09
727
CC 11-19-2024
727 of 784
33 EXEC ASST TO CITY MANAGER $47.77 $50.15 $52.66 $55.30 $58.06 EXEC ASST TO THE CITY ATTNY $46.59 $48.93 $51.38 $53.94 $56.64 FINANCE MANAGER $84.91 $89.15 $93.61 $98.29 $103.20
GIS COORDINATOR $48.71 $51.15 $53.71 $56.39 $59.21
GIS PROGRAM MANAGER $83.91 $88.11 $92.52 $97.14 $102.00 GRANTS MANAGEMENT ANALYST $61.81 $64.90 $68.14 $71.55 $75.12 HUMAN RESOURCE ANALYST I $56.06 $58.86 $61.80 $64.90 $68.14 HUMAN RESOURCES ANALYST II $61.81 $64.90 $68.14 $71.55 $75.12 HUMAN RESOURCES ASSISTANT $33.76 $35.45 $37.22 $39.08 $41.03 HUMAN RESOURCES MANAGER $84.91 $89.15 $93.61 $98.29 $103.20 HUMAN RESOURCES TECHNICIAN $46.22 $48.53 $50.96 $53.51 $56.18 I.T. ASSISTANT $45.46 $47.73 $50.12 $52.62 $55.25
INNOVATION AND TECHNOLOGY MGR $83.91 $88.11 $92.52 $97.14 $102.00 LEGAL SERVICES MANAGER $48.12 $50.53 $53.05 $55.71 $58.49 MANAGEMENT ANALYST $56.54 $59.37 $62.34 $65.45 $68.72
NETWORK SPECIALIST $58.16 $61.06 $64.12 $67.32 $70.69
PARK RESTORATION IMPV MGR $79.33 $83.29 $87.46 $91.83 $96.42 PERMIT CENTER MANAGER $73.82 $77.51 $81.39 $85.46 $89.73 PLANNING MANAGER $85.34 $89.60 $94.08 $98.79 $103.73
PUBLIC AFFAIRS MANAGER $72.94 $76.58 $80.41 $84.43 $88.66 PUBLIC INFORMATION OFFICER $72.86 $76.50 $80.33 $84.34 $88.56 PUBLIC WORKS PROJECT MANAGER $69.73 $73.22 $76.88 $80.72 $84.76 PUBLIC WORKS SUPERVISOR $58.78 $61.71 $64.80 $68.04 $71.44 PURCHASING MANAGER $84.91 $89.15 $93.61 $98.29 $103.20
RECREATION MANAGER $60.01 $63.01 $66.16 $69.46 $72.94
RECREATION SUPERVISOR $54.43 $57.15 $60.01 $63.01 $66.16 SENIOR ACCOUNTANT $59.48 $62.45 $65.57 $68.85 $72.30
SENIOR ASSISTANT CITY ATTORNEY $102.13 $107.24 $112.60 $118.23 $124.14 SENIOR CIVIL ENGINEER $79.66 $83.64 $87.82 $92.22 $96.83 SENIOR BUSINESS SYSTEMS ANALYST $70.50 $74.02 $77.73 $81.62 $85.69 SENIOR MANAGEMENT ANALYST $61.81 $64.90 $68.14 $71.55 $75.13 SENIOR PUBLIC WORKS PROJECT MGR $73.21 $76.88 $80.72 $84.76 $88.99 SERVICE CENTER SUPERINTENDENT $75.15 $78.91 $82.86 $87.00 $91.35 SPECIAL PROJECT EXECUTIVE $112.10 $117.71 $123.60 $129.78 $136.26 TRANSPORTATION MANAGER $84.81 $89.05 $93.51 $98.18 $103.09 WEB SPECIALIST $51.42 $53.99 $56.69 $59.53 $62.50
728
CC 11-19-2024
728 of 784
Exhibit A
RESOLUTION NO. 24-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL APPROVING THE REVISED UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM

AND SALARY SCHEDULE
WHEREAS, the City Council desires to revise the classification plan and salary schedule in the Unrepresented Employees’ Compensation Programs adopted by City Council Resolution No. 24-XXX
NOW, THEREFORE, BE IT RESOLVED that

1. The City Council hereby adopts the revised classification plan and salary schedule for unrepresented employees, as shown in Exhibit A.

2. The City Manager is hereby authorized to update the Unrepresented Employees’ Compensation Programs to incorporate the revised classification plan and salary schedule.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 19th day of November 2024 by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Sheila Mohan, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Kirsten Squarcia, City Clerk
________________________
Date
729
CC 11-19-2024
729 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 1

Although subject to change in accordance with provision of the Personnel Code, the positions in the following classifications have been designated as unrepresented.

MANAGEMENT AND CONFIDENTIAL CLASSIFICATIONS:

Classification Title
Accountant I
Accountant II
Accounting Technician
Administrative Assistant
Assistant City Attorney
Assistant City Manager
Assistant Director of Administrative Services
Assistant Director of Community Development
Assistant Director of Public Works
Assistant Director of Parks and Recreation
Assistant to the City Manager
Budget Manager
Building Official
Business Systems Analyst/Program Manager
Capital Improvement Program Manager
730
CC 11-19-2024
730 of 784
Exhibit A
Chief Technology Officer/Director of Information Services (Department Head) City Clerk
City Engineer
Code Enforcement Supervisor
Community Relations Coordinator
Deputy Building Official
Deputy City Attorney
Deputy City Clerk
Deputy City Manager
Director of Administrative Services (Department Head)
Director of Community Development (Department Head)
Director of Parks and Recreation (Department Head)
Director of Public Works
Economic Development Manager
Emergency Services Coordinator
Environmental Programs Manager
Executive Assistant to the City Attorney
Executive Assistant to the City Manager
Finance Manager
GIS Coordinator
GIS Program Manager
Grants Management Analyst
Human Resources Analyst I
Human Resources Analyst II
Human Resources Assistant
Human Resources Manager
Human Resources Technician
Information Technology Assistant
Innovation and Technology Manager – Applications
Innovation and Technology Manager - Infrastructure
Legal Services Manager
Management Analyst
Network Specialist
Park Restoration and Improvement Manager
Permit Center Manager
Planning Manager
Public Information Officer
Public Affairs Manager
Public Works Projects Manager
Public Works Supervisor
Purchasing Manager
Recreation Manager
Recreation Supervisor
731
CC 11-19-2024
731 of 784
Exhibit A
Senior Accountant
Senior Assistant City Attorney
Senior Business Systems Analyst
Senior Civil Engineer
Senior Management Analyst
Senior Public Works Project Manager
Service Center Superintendent
Special Project Executive
Transportation Manager
Web Specialist
In the event of any inconsistency between the Compensation Program and any Employment Contracts, the provisions of the Employment Contract and any amendments thereto control.

Adopted by Action of the
City Council, April 1, 1974
Revised 10/74, 3/78, 6/81, 6/82, 7/85, 7/87, 1/89, 7/90, 4/91, 5/91, 7/92, 6/95, 6/96, 7/99, 6/02, 7/04, 6/05, 04/07, 7/10, 10/12, 12/12, 7/13,11/13,12/13,3/14, 7/14, 11/15, 6/16, 10/16, 11/16, 6/17, 10/17, 7/19, 6/22, 8/22, 3/23, 11/23, 11/24 City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 2

SALARY SCHEDULE

See Attachment A for a list of paygrades.
732
CC 11-19-2024
732 of 784
Exhibit A
Adopted by Action
of the City Council
April 1, 1974
Revised 8/78, 7/79, 6/80, 7/92, 6/95, 10/12, 7/13, 10/16, 7/19, 8/22, 11/23 City of Cupertino
UNREPRESENTED EMPLOYEES’COMPENSATION PROGRAM
Policy No. 3

II DEFINITIONS
A. Conferences
A conference is an annual meeting of a work related organization the membership of which may be held in the name of the City or the individual.

B. Local Area
The local area is defined to be within Santa Clara and San Mateo Counties and within a 733
CC 11-19-2024
733 of 784
Exhibit A
40- mile distance from Cupertino when traveling to Alameda County.

D. Training Session
A training session is any type of seminar or workshop the attendance at which is for the purpose of obtaining information of a work related nature to benefit the City’s operations or to enhance the attendee’s capabilities in the discharge of assigned duties and responsibilities.

B. Registration
Registration fees for authorized attendance at a meeting or training session will be paid by the City.

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.

E. Meals

2. As Part of a Conference
735
CC 11-19-2024
735 of 784
Exhibit A
When City personnel are attending a conference or other organized educational activity, they shall be reimbursed or advanced for meals not provided by the activity, on a per diem or actual cost basis. The per diem and actual cost rate shall follow the rules described in the meals with no conference paragraph.

F. Other Expenses
Payments toward or reimbursement of expenses at such functions shall be limited to the actual costs consistent with the application of reasonable standards.

Other reasonable expenses related to business purposes shall be paid consistent with this policy.

No payment shall be made for any expenses incurred which are of a personal nature or not within a standard of reasonableness for the situation as may be defined by the Finance Department.

G. Non-Reimbursable Expenses
The City will not reimburse or advance payment toward expenses including, but not limited to:

1. The personal portion of any trip;

2. Political or charitable contributions or events;

3. Family expenses, including those of a partner when accompanying the employee on City-related business, as well as child or pet-related expenses;

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

5. Gifts of any kind for any purpose;

6. Service club meals; of those besides economic development staff;

7. Alcoholic beverages;

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

9. Personal losses incurred while on City business.

IV ATTENDANCE AUTHORIZATION
736
CC 11-19-2024
736 of 784
Exhibit A
A. Budgetary Limitations
Notwithstanding any attendance authorization contained herein, reimbursement or advances for expenses relative to conferences, meeting or training sessions shall not exceed the budgetary limitations.

B. Conference Attendance
Attendance at conferences or seminars by employees must be approved by their supervisor.

C. Meetings
Any employee, management or non-management, may attend a meeting when authorized by their supervisor.

D. Training Sessions
Any employee, management or non-management, may attend a training session when authorized by their supervisor.

V. FUNDING
A. Appropriation Policy
It shall be the policy of the City to appropriate funds subject to availability of resources.

B. Training Sessions
Payments toward or reimbursement of expenses incurred in attendance at training sessions, will be appropriated annually through the budget process.

Revised 7/83, 7/85, 7/87, 7/88, 7/91, 7/92, 12/07,7/10
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 4

AUTOMOBILE ALLOWANCES AND

Those persons who occasionally are required to use their personal automobiles for City business shall be reimbursed for such use at an appropriate rate established by the City Council. Submission of reimbursement requests must be approved by the Department Head.

Employees in the following classifications shall be paid on a monthly basis the following automobile allowance:

Adopted by Action of the City Council
April 1, 1974
Revised 7/74, 5/79, 6/80, 7/81, 8/84, 7/87, 1/89, 7/90,7/92, 6/96, 8/99, 6/00, 9/01, 1/02, 6/02, 10/07, 7/10, 7/11, 10/12, 12/12, 7/13, 11/15, 10/16, 11/16, 6/17, 7/19, 8/22, 3/23 739
CC 11-19-2024
739 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 5

ASSOCIATION MEMBERSHIPS AND

Adopted by Action of
the City Council
April 1, 1974
Revised
7/92
740
CC 11-19-2024
740 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 6

OVERTIME WORKED
EXEMPT POSITIONS:

NON-EXEMPT POSITIONS:

COMPENSATORY TIME OFF
At the employee’s discretion, compensatory time (CTO) may be granted for overtime worked at the rate of time and one-half for each hour worked in lieu of compensation in cash.

An employee may exercise his/her option twice each calendar year to convert any/or all accumulated compensatory time to cash.
741
CC 11-19-2024
741 of 784
Exhibit A

STANDBY COMPENSATION
Employees in the classification of Information and Technology Assistant who are required to be available during their off-shift hours for possible recall for emergency service shall be compensated $300.00 per 128 hours. Minimum staffing and skill qualifications for standby assignment shall be determined by the City.

Adopted by Action of
the City Council
April 1, 1974
Revised
6/80, 7/91, 7/92, 6/96, 7/97, 4/07, 7/13, 10/16, 8/22
742
CC 11-19-2024
742 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’COMPENSATION PROGRAM
Policy No. 7

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 included in the employee’s gross pay.

Effective January 1, 2024, for each participating employee, the City shall contribute the maximum toward premium cost per month for health and dental during the term of this agreement as follows:

With regards to any change in the monthly medical plan premium charged by CalPERS in the plan year 2025 compared to the plan year 2024, the City’s maximum contributions shall be capped at no more than 6%. Any required contribution amounts exceeding the premium contribution of the City are the responsibility of the employee. 743
CC 11-19-2024
743 of 784
Exhibit A
Health In-Lieu Payments
City agrees to pay a monthly amount of three hundred seventy-five ($375.00) per month to the employee who can demonstrate that they have equivalent health coverage through their spouse, parent, or other group coverage and who request this cash payment in lieu of health insurance coverage.
*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
September 16, 1974
Revised
7/75, 7/76, 7/77, 8/78, 7/79, 6/80, 6/81, 7/81, 6/82, 7/83, 7/84, 7/88, 7/89, 7/90, 7/91, 7/92, 6/95, 7/97, 7/99, 6/00, 6/02, 7/04, 6/05, 4/07,12/12, 7/13, 10/16, 7/19, 12/19, 8/22 744
CC 11-19-2024
744 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 8

The City provides the following fixed paid holidays for eligible employees covered by this agreement:

1. New Year’s Day

2. Martin Luther King Day

3. Lunar New Year

4. Presidents’ Day

5. Cesar Chavez Day

6. Memorial Day

7. Juneteenth

8. Independence Day

9. Labor Day

10. Veteran’s Day

11. Thanksgiving Day

12. Day Following Thanksgiving

13. Christmas Eve

14. Christmas Day

When a holiday falls on a Sunday, the following Monday shall be observed as the non-work day. When a holiday falls on a Saturday, the previous Friday shall be observed as the nonwork day. 745
CC 11-19-2024
745 of 784
Exhibit A

Adopted by Action of
the City Council
July 7, 1975
Revised 6/80, 6/89, 7/92, 7/99, 7/13, 8/22, 11/23
746
CC 11-19-2024
746 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 9

LIFE, LONG TERM DISABILITY INSURANCE, AND SHORT TERM DISABILITY

Adopted by Action of
the City Council
September 16, 1976
Revised 7/76, 6/80, 6/81, 6/82, 6/92, 10/16
747
CC 11-19-2024
747 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 10

The City shall maintain and administer means by which employees 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. Employee contributions to such plans may be made in such amounts as felt proper and necessary to the employee. Employer contributions shall be as determined by the City Council.

Adopted by Action of
the City Council
July 7, 1975
Revised 6/80, 7/87, 7/92, 7/99
748
CC 11-19-2024
748 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 11
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM CONTRIBUTION
A. Employees hired on or before December 29, 2012 Only:

For employees hired on or before December 29, 2012, the City has contracted with CalPERS for a 2.7% @55 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. For Employees hired by the City of Cupertino on December 30, 2012 or December 31, 2012 or a current CalPERS employee who qualifies as a classic member under CalPERS Regulations Only:

C. For new employees hired by the City of Cupertino on or after January 1, 2013 and do not qualify as Classic members Only:

Adopted by Action of
the City Council
June, 1981
Revised 6/87, 6/89, 7/90, 7/91, 7/92, 6/03, 7/04, 4/07, 7/10, 10/12, 12/12, 7/13, 10/16, 7/19 749
CC 11-19-2024
749 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 12

Adopted by Action of
City Council
July 1, 1983
Revised 7/87, 7/88, 7/89, 7/90, 7/91, 7/92, 6/95, 7/99, 4/07, 10/12, 10/16, 7/19 750
CC 11-19-2024
750 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 13

Employees may accumulate administrative leave hours up to two times their annual accrual.

Employees shall be eligible to convert up to 80 hours of administrative leave to pay one time each calendar year.

Adopted by Action of
the City Council
July, 1988
Revised
7/92, 7/97, 7/99, 7/10, 12/12, 10/16, 8/22, 3/23
751
CC 11-19-2024
751 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 14

Adopted by Action of the City Council
June 17, 1996
752
CC 11-19-2024
752 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 15

Benefited full-time employees accrue vacation in accordance with the following schedule.

Benefited employees who work less than a full-time work schedule accrue vacation in accordance with the following schedule on a pro-rated basis.

Adopted by Action of the City Council
July 7, 1997
Revised 6/99, 7/10, 12/12, 7/13, 10/16, 3/23
753
CC 11-19-2024
753 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 16

HOUSING ASSISTANCE PROGRAM
Housing assistance may be offered to the department heads pursuant to Resolution No. 15- 092.

Adopted by Action of the City Council
July 7, 1997
Revised 7/99, 7/10, 8/12, 10/15
754
CC 11-19-2024
754 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 17
VISION INSURANCE – EMPLOYER CONTRIBUTION
It is the policy of the City of Cupertino to provide vision insurance under which employees and their dependents may be covered. The purpose of this program is to promote and preserve the health of employees.

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 1997
Revised 7/99, 6/02, 6/03, 7/10, 10/12
755
CC 11-19-2024
755 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 18

WORK OUT OF CLASSIFICATION/WORK IN DUAL CLASSIFICATION
Work Out of Classification – Temporary assignment, approved in advance by the department head, to a classification in a higher pay grade shall be compensated at the Step 1 rate of the higher classification or at a rate five (5) percent greater than that of the regular position, whichever is greater, for the number of hours assigned. In order to qualify for outof-classification pay, an employee shall work a minimum of four (4) hours per day in the temporary assignment.

Acting pay is not included for purposes of calculating CalPERS compensation.

All requests for out of class pay or acting pay must be approved by the Director of Administrative Services or his/her designee.

Adopted by Action of the City Council
October 2016
Revised 7/19
756
CC 11-19-2024
756 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 19

Courses should either: a) maintain or improve job skills in the employee’s current position; b) be expressly required by the City or by law; or c) prepare the employee to become a competitive applicant for a different position with the City.

Mandatory or annual coursework, attendance at conferences and training required to maintain job specific certifications or proficiencies are not included in the Education Reimbursement Program.

Adopted by Action of the City Council
July 2019
757
CC 11-19-2024
757 of 784
Exhibit A
City of Cupertino
UNREPRESENTED EMPLOYEES’ COMPENSATION PROGRAM
Policy No. 20

CITY SPONSORED RECREATION AND WELLNESS PROGRAMS
Unrepresented employees shall have the privilege of enrollment in City sponsored recreation programs at the City residents’ fee structure and in preference to non-residents wishing to enroll. Each calendar year, employees and family members on the employee’s dental plan are eligible to be reimbursed up to $500 per employee in Rec Bucks. Employees shall be reimbursed for approved recreation services in accordance with the City’s Recreation Buck Policies. Programs allowing for preregistration will be reimbursed after completion of the program, including those allowing for or requiring preregistration in the calendar year prior to reimbursement. Reimbursements shall be applied to the year in which they are received. Benefited employees will also receive a free employee-only annual Cupertino Sports Center membership. Part-time benefited employees will have the annual amount of Recreation Bucks prorated based on number of hours worked. Recreation Bucks are a taxable benefit under IRS Code, and must be used by the employee within the calendar year and are non-transferrable.

City employees are eligible to participate in the City’s wellness program as provided for in the City’s Administrative Rules and Regulations.

Adopted by Action of the City Council
July 2019
758
CC 11-19-2024
758 of 784
Exhibit A
Listing of Unrepresented Classifications by
Salary Rate or Pay Grades
Effective July 1, 2013 (Res. No. 13-061)
Amended 11/19/ 13 (Res. No. 13-099)
Amended 12/17/13 (Res. No. 13-108)
Amended 3/18/14 (Res. No. 14-130)
Amended 11/3/14 (Res. No. 14-209)
Amended 11/3/2015 (Res. No. 15-099)
Amended 6/21/16 (Res. No. 16-064)
Amended 10/4/16 (Res. No. 16-104 – Not adopted)
Amended 10/18/16 (Res. No. 16-108)
Amended 11/15/16 (Res. No. 16-128)
Amended 6/20/17 (Res. No. 17-056)
Amended 10/17/17 (Res. No. 17-101)
Amended 7/16/19 (Res. No. 19-086)
Amended 11/19/19 (Res. No. 19-140)
Amended 6/7/22 (Res. No. 22-067 on 6/9/22)
Amended 8/16/22 (Res. No. 22-103)
Amended 3/7/23 (Res. No.23-028)
Amended 11/19/24 (Res. No.24-XXX)
759
CC 11-19-2024
759 of 784
Exhibit A

ATTACHMENT A

SALARY SCHEDULE
Salary Effective November 19, 2024
Classification Step1 Step2 Step3 Step4 Step5
ACCOUNTANT I $46.60 $48.93 $51.38 $53.95 $56.65
ACCOUNTANT II $51.37 $53.94 $56.64 $59.47 $62.44
ACCOUNTING TECHNICIAN $46.22 $48.53 $50.96 $53.51 $56.18 ADMINISTRATIVE ASSISTANT $40.65 $42.68 $44.82 $47.06 $49.41 ASSISTANT CITY ATTORNEY $92.83 $97.48 $102.35 $107.47 $112.84 ASSISTANT CITY MGR $126.92 $133.27 $139.93 $146.93 $154.27 ASSISTANT DIRECTOR OF ADMIN SERV $90.80 $95.34 $100.11 $105.12 $110.37 ASSISTANT DIRECTOR COMM DEV $90.80 $95.34 $100.11 $105.12 $110.37 ASSISTANT TO THE CITY MANAGER $74.68 $78.41 $82.33 $86.45 $90.77 ASST DIR PUBLIC WORKS ENG $94.47 $99.19 $104.15 $109.36 $114.82 ASST DIR RECREATION COMM SVCS $90.80 $95.34 $100.11 $105.12 $110.37 BUDGET MANAGER $84.91 $89.15 $93.61 $98.29 $103.20
BUILDING OFFICIAL $85.34 $89.60 $94.08 $98.79 $103.73
BUSINESS SYSTEMS ANALYST $65.89 $69.18 $72.64 $76.28 $80.09 CAPITAL IMPV PROGRAM MGR $84.81 $89.05 $93.51 $98.18 $103.09 CHIEF TECHNOLOGY OFFICER $112.10 $117.71 $123.60 $129.78 $136.26 CITY CLERK $75.73 $79.51 $83.49 $87.66 $92.05
CITY ENGINEER $94.47 $99.19 $104.15 $109.36 $114.82
CODE ENFORCEMENT SUPERVISOR $73.82 $77.51 $81.39 $85.46 $89.73

ENVIRONMENTAL PROGRAMS
MANAGER $84.81 $89.05 $93.51 $98.18 $103.09
EXEC ASST TO CITY MANAGER $47.77 $50.15 $52.66 $55.30 $58.06 EXEC ASST TO THE CITY ATTNY $46.59 $48.93 $51.38 $53.94 $56.64 760
CC 11-19-2024
760 of 784
Exhibit A
FINANCE MANAGER $84.91 $89.15 $93.61 $98.29 $103.20
GIS COORDINATOR $48.71 $51.15 $53.71 $56.39 $59.21
GIS PROGRAM MANAGER $83.91 $88.11 $92.52 $97.14 $102.00 GRANTS MANAGEMENT ANALYST $61.81 $64.90 $68.14 $71.55 $75.12 HUMAN RESOURCE ANALYST I $56.06 $58.86 $61.80 $64.90 $68.14 HUMAN RESOURCES ANALYST II $61.81 $64.90 $68.14 $71.55 $75.12 HUMAN RESOURCES ASSISTANT $33.76 $35.45 $37.22 $39.08 $41.03 HUMAN RESOURCES MANAGER $84.91 $89.15 $93.61 $98.29 $103.20 HUMAN RESOURCES TECHNICIAN $46.22 $48.53 $50.96 $53.51 $56.18 I.T. ASSISTANT $45.46 $47.73 $50.12 $52.62 $55.25
INNOVATION AND TECHNOLOGY MGR $83.91 $88.11 $92.52 $97.14 $102.00 LEGAL SERVICES MANAGER $48.12 $50.53 $53.05 $55.71 $58.49 MANAGEMENT ANALYST $56.54 $59.37 $62.34 $65.45 $68.72
NETWORK SPECIALIST $58.16 $61.06 $64.12 $67.32 $70.69
PARK RESTORATION IMPV MGR $79.33 $83.29 $87.46 $91.83 $96.42 PERMIT CENTER MANAGER $73.82 $77.51 $81.39 $85.46 $89.73 PLANNING MANAGER $85.34 $89.60 $94.08 $98.79 $103.73
PUBLIC AFFAIRS MANAGER $72.94 $76.58 $80.41 $84.43 $88.66 PUBLIC INFORMATION OFFICER $72.86 $76.50 $80.33 $84.34 $88.56 PUBLIC WORKS PROJECT MANAGER $69.73 $73.22 $76.88 $80.72 $84.76 PUBLIC WORKS SUPERVISOR $58.78 $61.71 $64.80 $68.04 $71.44 PURCHASING MANAGER $84.91 $89.15 $93.61 $98.29 $103.20
RECREATION MANAGER $60.01 $63.01 $66.16 $69.46 $72.94
RECREATION SUPERVISOR $54.43 $57.15 $60.01 $63.01 $66.16 SENIOR ACCOUNTANT $59.48 $62.45 $65.57 $68.85 $72.30
SENIOR ASSISTANT CITY ATTORNEY $102.13 $107.24 $112.60 $118.23 $124.14 SENIOR CIVIL ENGINEER $79.66 $83.64 $87.82 $92.22 $96.83 SENIOR BUSINESS SYSTEMS ANALYST $70.50 $74.02 $77.73 $81.62 $85.69 SENIOR MANAGEMENT ANALYST $61.81 $64.90 $68.14 $71.55 $75.13 SENIOR PUBLIC WORKS PROJECT MGR $73.21 $76.88 $80.72 $84.76 $88.99 SERVICE CENTER SUPERINTENDENT $75.15 $78.91 $82.86 $87.00 $91.35 SPECIAL PROJECT EXECUTIVE $112.10 $117.71 $123.60 $129.78 $136.26 TRANSPORTATION MANAGER $84.81 $89.05 $93.51 $98.18 $103.09 WEB SPECIALIST $51.42 $53.99 $56.69 $59.53 $62.50
761
CC 11-19-2024
761 of 784
CAPITAL IMPROVEMENT PROGRAMS - FISCAL YEAR 2024/25 ▪ 5 YEAR PLAN Title
(Bold items are added FY24-
25 proposal)
Estimated Project
Cost Project Description Project Justification Prioritization Accessibility Dashboard $200,000 Update the findings of the 2015 ADA self-evaluation report.

The ADA evaluation report is 7 years
old now, and there have been
updated building/accessibility codes
put in place.

This project will update the report
and digitize the results to facilitate
updates, going forward.

The 2015 report needs to be
updated, and Staff proposes to
create a dashboard to facilitate
updates to the tables/report data.

Staffing will be be situated to
address this project next FY. Priority
as a means to improve safe and
accessible conditions in the City.

Blackberry Farms Golf
Course - Club House (FY
23-24)
If the Golf Course is reconfigured, it
is likely that a new location for the
"club house" and/or Pro Shop is
more beneficial. Will be
reconsidered when the BBF Golf
Course Improvements direction is
given.

City Hall Design and Construction of a new or
renovated City Hall.

Existing building requires seismic
retrofit, the infrastructural systems
are antiquated, and the space
planning is not appropriate for
current workplaces practices. Parking
areas require expansion.

Priority for Safety criteria and
ongoing operations. Seismic retrofit
and systems upgrades are needed.

Community Hall
Improvements
Originally a part of the City Hall
project, to allow for the
consideration of the EOC on the
property. Since some upgrades to
the pantry could facilitate hosting
larger events in the Hall, this project
may be reconsidered once City Hall
project direction is obtained.

Multi-Site Sustainable
Infrastructure: Audit &
Upgrades
$500,000 Develop recommendations for a
portfolio-wide facility upgrades for
heating and cooling systems,
emergency power systems, and
renewable energy sources.

The RFQ process for energy service
companies (ESCO's) to perform audit
and
initiate improvements was
completed in 2022. Project was
defunded in 2023. More grant
funding may be available in the
future.

Originally funded in FY20-21, this
was a priority project to address CAP
goals. Many aspects of the previous
project are addressed in the current
EVCS and PV systems projects.

Senior Center Expansion
(FY19-20)
$25,000,000 Major project: can be reconsidered
after existing major projects are
underway.

Service Center –
Replacement
Administration Building
with EOC (FY19-20)
$16,000,000 Major project: can be reconsidered
after existing major projects are
underway.

PROJECT LISTS FROM PREVIOUS YEARS
3/06/2024 Attachment M Page 1 of 6
762
CC 11-19-2024
762 of 784
CAPITAL IMPROVEMENT PROGRAMS - FISCAL YEAR 2024/25 ▪ 5 YEAR PLAN Title
(Bold items are added FY24-
25 proposal)
Estimated Project
Cost Project Description Project Justification Prioritization Service Center Shed No.
3 Improvements (FY19-
20)
$1,700,000 The project was designed and put
out for public bid, and the costs
came back at three times engineer's
estimate.

Major project (coupled with Admin
Bldg. replacement): can be
reconsidered after existing major
projects are underway.

Stocklmeir House – New
Sewer Lateral (FY19-20)
$100,000 Stocklmeir House direction under
review in an existing project.

Stocklmeir Legacy Farm
– Phase 1 Improvements
(FY19-20)
$400,000 Stocklmeir House direction under
review in Existing Project.

Aquatics Facility (FY19-
20)
$50,000,000 Major project: can be reconsidered
after existing major projects are
underway.

Blackberry Farm – Play
Area Improvements
(FY19-20)
$250,000 Proposed scope adds resilient play
surface. Renovated older
playgrounds is a larger priority.

Blackberry Farm –
Splash Pad (FY19-20) (FY
20-21)
$690,000 Proposed in FY21-22, deemed too
expensive by Council. Currently the
drought conditions are not
conducive to water features.

Gymnasium Complex
(FY19-20)
$35,000,000 Major project: can be reconsidered
after existing major projects are
underway.

Healing Garden – Design
and Construction (FY19-
20)
$1,000,000 Can be included as part of other
garden/landscaping projects (e.g.

Library landscaping, and/or future
Community Garden projects).

Jollyman Park Pathway
Installation (FY19-20)
$750,000 Project can be re-examined after the
AIPG is installed.

Labyrinth Program or
Similar (FY 20-21)
Can [also] be included as part of
other garden/landscaping projects
(e.g. Library landscaping, and/or
future Community Garden projects).

Linda Vista Park
Improvements (FY19-20)
Upgrades to shade structures, park
amenities and playgrounds are
underway.

Major Recreation
Facilities: Use and
Market Analysis (FY 22-
23)
Council rejected this proposal.

McClellan Ranch – Barn
Renovation (FY19-20)
$3,250,000 Renovations to a historic building in
the flood zone will be very costly.

McClellan Ranch
Preserve EEC Aquatic
Habitat (FY19-20)
$175,000 Scope feasibility is questionable.

Operational costs may also increase
due to the addition of this facility.
3/06/2024 Attachment M Page 2 of 6
763
CC 11-19-2024
763 of 784
CAPITAL IMPROVEMENT PROGRAMS - FISCAL YEAR 2024/25 ▪ 5 YEAR PLAN Title
(Bold items are added FY24-
25 proposal)
Estimated Project
Cost Project Description Project Justification Prioritization McClellan Ranch
Preserve Stevens Creek
Access (FY19-20)
$750,000 Proposal was not accepted. This
work would require permits from SC
Valley Water District, Army Corp
Engrs., Fish/Wildlife, Regional Water
Control Board, FEMA, etc.

Memorial Park projects
(Note: complete
renovation of the park
will exceed the $20M
indicated here.)
$20,000,000 Implement projects from the MPSP
(see above)
New projects are a low priority in the
short term.

New Neighborhood
Parks (FY19-20)
$20,000,000 One new neighborhood park
established at Lawrence-Mitty. The
acquisition of land and development
of new parks can be reconsidered
after Lawrence-Mitty, Memorial Park
and City Hall projects are underway.
(No report was potential sites and/or
feasibility was completed.)
Park Pathways $3,500,000 Improvements to existing park
pathways, converting a majority of
the paths from asphalt to concrete;
and design and installation of new
pathways in some locations.

Concrete pathways are more stable,
less difficult to maintain, and
environmentally more
advantageous.

New pathways are a low priority, PW
Operations will propose Special
project funding to repair existing
paths.

Performing Arts Center
(FY19-20)
$77,000,000 Major project: can be reconsidered
after existing major projects are
underway.

Portal Park
Improvements (FY19-20)
$750,000 Upgrades to shade structures, park
amenities and playgrounds are
underway. The existing building is
not useful in its current
configuration, and parking is not
adequate to support activities.

Recreation Facilities
Monument Signs (FY19-
20)
$200,000 The Sign program (design standards)
were developed but the signs were
not implemented.

Wilson Park
Improvements (FY19-20)
$750,000 Full-sized basketball Court and
Community Garden projects are
underway at Wilson Park.

BBF Golf Course - Water
Treatment plant (FY 23-
24)
Requested by a resident: more
follow-up is required before this can
become a CIP project.

Creek Infall/Outfall
Restoration (FY19-20)
Storm Drain Outfall Review project is
underway now (in Operations)
($480,000)
3/06/2024 Attachment M Page 3 of 6
764
CC 11-19-2024
764 of 784
CAPITAL IMPROVEMENT PROGRAMS - FISCAL YEAR 2024/25 ▪ 5 YEAR PLAN Title
(Bold items are added FY24-
25 proposal)
Estimated Project
Cost Project Description Project Justification Prioritization Fiber Expansion - 14
Traffic Sigs.
$1,849,050 Expand fiber network to include 14
traffic signals.