CC 12-03-2024 Searchable Packet.pdf — Cupertino City Council, December 3, 2024 (part 1 of 4)

CITY OF CUPERTINO

CITY COUNCIL
AGENDA
10300 Torre Avenue and 10350 Torre Avenue and via Teleconference Tuesday, December 3, 2024
6:15 PM
Non Televised Closed Session (6:15) and Televised Regular Meeting (6:45)

IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION Members of the public wishing to observe the meeting may do so in one of the following ways:
1) Attend in person at Cupertino Community Hall, 10350 Torre Avenue. 2) Tune to Comcast Channel 26 and AT&T U-Verse Channel 99 on your TV. 3) The meeting will also be streamed live on and online at www.Cupertino.org/youtube and www.Cupertino.org/webcast
Members of the public wishing to comment on an item on the agenda may do so in the following ways:
1) Appear in person for Closed Session in City Hall, Conference Room C or for Open Session in Cupertino Community Hall. Members of the public may provide oral public comments pertaining to the agenda prior to the beginning of Closed Session and after Roll Call.

Members of the public may provide oral public comments during the Open Session as follows:

Oral public comments will be accepted during the meeting. Comments may be made during the public comment period for each agenda item.

Members of the audience who address the City Council must come to the lectern/microphone, and are requested to complete a Speaker Card and identify themselves.

Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments.
2) E-mail comments for Closed Session or Open Session by 4:00 p.m. on Tuesday, December 3 to the Council at [email protected]. These e-mail comments will also

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be forwarded to Councilmembers by the City Clerk’s office before the meeting and posted to the City’s website after the meeting. Members of the public that wish to share a document must email [email protected] prior to the meeting.

Emailed comments that are related to an agenda item and received following the agenda publication, prior to or during the meeting, will be posted to the City’s website. 3) Open Session Teleconferencing Instructions
To address the City Council, click on the link below to register in advance and access the meeting:

Online
Register in advance for this webinar:
https://cityofcupertino.zoom.us/webinar/register/WN_LP_uxvYCSCizgNCxHS6-nQ#/ Phone
Dial: 669-900-6833 and enter Webinar ID: 925 8735 1472 (Type *9 to raise hand to speak, *6 to unmute yourself). Unregistered participants will be called on by the last four digits of their phone number.

Or an H.323/SIP room system:

H.323:
162.255.37.11 (US West)
162.255.36.11 (US East)
Meeting ID: 925 8735 1472
SIP: [email protected]
After registering, you will receive a confirmation email containing information about joining the webinar.

Please read the following instructions carefully:

1. You can directly download the teleconference software or connect to the meeting in your internet browser. If you are using your browser, make sure you are using a current and up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer.

2. You will be asked to enter an email address and a name, followed by an email with instructions on how to connect to the meeting. Your email address will not be disclosed to the public. If you wish to make an oral public comment but do not wish to provide your

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City Council Agenda December 3, 2024
name, you may enter “Cupertino Resident” or similar designation.

3. When the Mayor calls for the item on which you wish to speak, click on “raise hand,” or, if you are calling in, press *9. Speakers will be notified shortly before they are called to speak.

4. When called, please limit your remarks to the time allotted and the specific agenda topic.

5. Members of the public that wish to share a document must email [email protected] prior to the meeting. These documents will be posted to the City’s website after the meeting.

ROLL CALL - 6:15 PM
10300 Torre Avenue, Conference Room C

CLOSED SESSION

1. Subject: Conference with legal counsel - existing litigation pursuant to Government Code § 54956.9 and initiation of litigation pursuant to Government Code § 54956.9(c) (Ali et al. v. City of Cupertino et al., Santa Clara County Superior Court Case No. 24CV439697)
RECESS

OPEN SESSION
CALL TO ORDER - 6:45 PM
10350 Torre Avenue, Community Hall and via Teleconference

PLEDGE OF ALLEGIANCE

ROLL CALL

CLOSED SESSION REPORT

CEREMONIAL ITEMS

POSTPONEMENTS AND ORDERS OF THE DAY

ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Council on any matter within the jurisdiction of the Council and not on the agenda for discussion. The total time for Oral Communications will ordinarily be limited to one hour. Individual speakers are limited to three (3) minutes. As necessary, the Chair may further limit the time allowed to individual speakers, or reschedule remaining comments to the end of the meeting on a first come first heard basis, with priority

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given to students. In most cases, State law will prohibit the Council from discussing or making any decisions with respect to a matter not listed on the agenda. A councilmember may, however, briefly respond to statements made or questions posed by speakers. A councilmember may also ask a question for clarification, provide a reference for factual information, request staff to report back concerning a matter, or request that an item be added to a future City Council agenda in response to public comment.

CONSENT CALENDAR (Items 2-10)
Items appearing on the Consent Calendar are considered routine City business and may be approved by one motion. Typical items may include meeting minutes, awards of contracts, the ratification of accounts payable, and second readings of ordinances. Any member of the Council may request to have an item removed from the Consent Calendar based on the rules set forth in the City Council Procedures Manual. Members of the public may provide input on one or more consent calendar items when the Mayor asks for public comments on the Consent Calendar.

2. Subject: Resolution amending the City of Cupertino Conflict of Interest Code for officials and designated employees; Amended 2024 Local Agency Biennial Notice (Continued from November 19, 2024)
Recommended Action: 1.) Adopt Resolution No. 24-099 rescinding Resolution No. 24-083 and amending the City of Cupertino Conflict of Interest Code for officials and designated employees; and

2.) Authorize the City Manager to sign the amended 2024 Local Agency Biennial Notice Staff Report
A – Adopted Resolution No. 24-083 and 2024 Local Agency Biennial Notice B - Draft Resolution and Conflict of Interest Code (redline) C – Draft Resolution and Conflict of Interest Code (clean) D – Amended 2024 Local Agency Biennial Notice

3. Subject: Adopt the OPEB and Pension Trust Investment Policies (Continued from November 19, 2024)
Recommended Action: 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 Staff Report
A - OPEB Trust Investment Policy (Redline)
B - OPEB Trust Investment Policy (Clean)
C - OPEB Trust Investment Policy Draft Resolution
D - Pension Trust Investment Policy (Redline)
E - Pension Trust Investment Policy (Clean)
F - Pension Trust Investment Policy Draft Resolution

4. Subject: Approve the November 18, 2024 City Council minutes Recommended Action: Approve the November 18, 2024 City Council minutes A - Draft Minutes

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5. Subject: Approve the November 19, 2024 City Council minutes Recommended Action: Approve the November 19, 2024 City Council minutes A - Draft Minutes

6. Subject: Declare properties as having potential fire hazards from weeds or other potential nuisances for the Cupertino Weed Abatement Program.

Recommended Action: Adopt Resolution No. 24-111 declaring properties as having potential fire hazards from weeds or other potential nuisances (Attachment A) and set hearing on January 22, 2025 to declare a public nuisance and to consider objections for proposed removal.

Staff Report
A - Draft Resolution and Exhibit A
B – Cupertino Commencement Report (Exhibit A)

7. Subject: Receive the FY 2023-24 Annual Comprehensive Financial Report (ACFR) Recommended Action: Receive the FY 2023-24 Annual Comprehensive Financial Report (ACFR)
Staff Report
A - FY 2023-24 ACFR

8. Subject: The Fourth Amendment to the SimpliGov agreement for Business Process Automation Software.

Recommended Action: Authorize the City Manager to execute a Fourth Amendment with SimpliGov, for Business Process Automation Software, for a total not-to-exceed amount of $307,000, extending the term through March 30, 2027.

Staff Report
A - Draft Fourth Amendment 22-042
B - Third Amendment 22-042
C - Second Amendment 22-042
D - First Amendment 22-042
E - Base Agreement 22-042

9. Subject: Award a construction contract for the Light Emitting Diode (LED) Streetlight Installation Project to Bear Electrical Solutions in the amount of $628,449 and approve a third amendment to the construction management agreement with Tanko Lighting for a total contract amount not to exceed $306,914.

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Recommended Action: 1. Award a construction contract for the LED Streetlight Installation Project (budget unit 420-99-258, project number 2022-13) in the amount of $629,449 to Bear Electrical Solutions.

2. Authorize the City Manager to execute the construction contract when all conditions have been met.

3. Authorize the Director of Public Works to execute any necessary change orders up to a construction contingency amount of $62,945 (10%) for a total contract amount of $692,394.

4. Authorize the third amendment to an agreement with Tanko Lighting for ConstructionManagement and Consulting Services on various Capital Improvement Programs (CIP) Projects, by increasing the contract amount by $156,914, for a total contract amount not to exceed $306,914.

Staff Report
A - Draft Contract
B - Draft Amended Agreement Tanko Lighting

10. Subject: Approval of a contract with Alta Planning + Design, Inc. for the Development of an Active Transportation Plan (ATP) in the amount of $300,000. (PW - David Stillman)
Recommended Action: 1. Approve a contract services agreement with Alta Planning + Design, Inc. in the amount of $300,000 for the development of a citywide Active Transportation Plan.

2. Authorize the City Manager to execute the agreement and any necessary amendments within the approved budget of $330,000.

3. Authorize the City Manager to execute any change orders up to a project contingency amount of $30,000 (10%), for a total contract amount of $330,000.

Staff Report
A - Draft Contract
PUBLIC HEARINGS - None
Effective January 1, 2023, Government Code Section 65103.5 (SB 1214) limits the distribution of copyrighted material associated with the review of development projects. Members of the public wishing to view plans that cannot otherwise be distributed under SB 1214 may make an appointment with the Planning Division to view them at City Hall by sending an email to [email protected]. Plans will also be made available digitally during the hearing to consider the proposal.

ACTION CALENDAR

11. Subject: City Manager’s First Quarter Financial Report for Fiscal Year (FY) 2024-25 (Continued from November 19, 2024)

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Recommended Action: A. Accept the City Manager’s First Quarter Financial Report for Fiscal Year 2024-25; and
B. Adopt Resolution No. 24-106 approving Budget Modification No. 2425-367, increasing appropriations by $331,128 fund by unassigned fund balance.

Presenter: Kristina Alfaro, Director of Administrative Services Staff Report
A - FY24-25 First Quarter Financial Report
B - Draft Resolution
C – Description of Carryovers and Adjustments as of September 30, 2024 D – Description of Budget Transfers as of September 30, 2024 E - First Quarter Recommended Budget Adjustments
F – FY 2023-24 Special Projects Update
G – FY 2024-25 First Quarter Special Projects Update as of September 30, 2024 H – Competitive and Non-Competitive Citywide Grants Tracking I – FY 2024-25 First Quarter CIP Project Status

12. Subject: Capital Improvement Program Photovoltaic Systems Design and Installation Project.

Recommended Action: Approve the Capital Improvement Programs Photovoltaic Systems Design and Installation Project conceptual design for three City of Cupertino facilities: Community Hall, Cupertino Sports Center, and Quinlan Community Center.

Presenter: Susan Michael, Capital Improvement Programs Manager Staff Report
A - FY 24-25 CIP Project Narratives Excerpt
B - Preliminary Cost Estimates
C - Programming Cost Funding Report
D - SCCLD Letter of Support for Postponement

13. Subject: Approve the third amendment to the City Attorney’s employment contract and revise the Appointed Employees’ Compensation Program Recommended Action: A. Adopt Resolution No. 24-112 approving the third amendment to the City Attorney’s employment contract;
B. Adopt Resolution No. 24-113 to amend the Appointed Employees’ Compensation Program effective December 3, 2024; and
C. Adopt Resolution No. 24-114 approving Budget Modification No. 2425-370, increasing appropriations by $19,691, resulting in the use of unassigned fund balance of $19,691
Presenter: Kristina Alfaro, Director of Administrative Services A – Draft Resolution approving the third Amendment to City Attorney Employment Agreement B – Draft Third Amendment to the City Attorney Employment Agreement C – Draft Resolution amending Appointed Employees’ Compensation Program D – Amendments to the Appointed Employees’ Compensation Program (Redline) E – Amendments to the Appointed Employees’ Compensation Program (Clean) F – Draft Resolution approving budget modification

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ITEMS REMOVED FROM THE CONSENT CALENDAR

CITY MANAGER REPORT

ORAL COMMUNICATIONS - CONTINUED

COUNCILMEMBER REPORTS

14. Subject: Councilmember Reports
A - Councilmember Report, Fruen
B - Councilmember Report, Mohan

FUTURE AGENDA ITEMS

ADJOURNMENT
Lobbyist Registration and Reporting Requirements: Individuals who influence or attempt to influence legislative or administrative action may be required by the City of Cupertino’s lobbying ordinance (Cupertino Municipal Code Chapter 2.100) to register and report lobbying activity. Persons whose communications regarding any legislative or administrative are solely limited to appearing at or submitting testimony for any public meeting held by the City are not required to register as lobbyists.

For more information about the lobbying ordinance, please contact the City Clerk’s Office at 10300 Torre Avenue, Cupertino, CA 95014; telephone (408) 777-3223; email [email protected]; and website: www.cupertino.org/lobbyist.

The City of Cupertino has adopted the provisions of Code of Civil Procedure §1094.6; litigation challenging a final decision of the City Council must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law.

Prior to seeking judicial review of any adjudicatory (quasi-judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision. Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the City Clerk’s office for more information or go to http://www.cupertino.org/cityclerk for a reconsideration petition form.

In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request in advance by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format.

Any writings or documents provided to a majority of the Cupertino City Council after publication of

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the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, Cupertino, California 95014, during normal business hours; and in Council packet archives linked from the agenda/minutes page on the City web site.

IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section

2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website.

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CITY OF CUPERTINO
Agenda Item
24-13510 Agenda Date: 12/3/2024
Agenda #: 1.

Subject: Conference with legal counsel - existing litigation pursuant to Government Code § 54956.9 and initiation of litigation pursuant to Government Code § 54956.9(c) (Ali et al. v. City of Cupertino et al., Santa Clara County Superior Court Case No. 24CV439697) CITY OF CUPERTINO Page 1 of 1 Printed on 11/26/2024
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CITY OF CUPERTINO
Agenda Item
24-13521 Agenda Date: 12/3/2024
Agenda #: 2.

Subject: Resolution amending the City of Cupertino Conflict of Interest Code for officials and designated employees; Amended 2024 Local Agency Biennial Notice (Continued from November 19, 2024)

1.) Adopt Resolution No. 24-099 rescinding Resolution No. 24-083 and amending the City of Cupertino Conflict of Interest Code for officials and designated employees; and

2.) Authorize the City Manager to sign the amended 2024 Local Agency Biennial Notice CITY OF CUPERTINO Page 1 of 1 Printed on 11/26/2024
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1 CITY COUNCIL STAFF REPORT
Meeting: December 3, 2024
Subject
Resolution amending the City of Cupertino Conflict of Interest Code for officials and designated employees; Amended 2024 Local Agency Biennial Notice
Recommended Action

1.) Adopt Resolution No. 24-___ rescinding Resolution No. 24-083 and amending the City of Cupertino Conflict of Interest Code for officials and designated employees; and

2.) Authorize the City Manager to sign the amended 2024 Local Agency Biennial Notice Reasons for Recommendation
The Political Reform Act, Government Code Section 81000 et seq., requires that local government agencies adopt and maintain a conflict of interest code. The code establishes the categories of public officials and designated employees who must disclose certain personal assets and income which might materially affect their governmental decisions. The public officials and designated employees must file a Statement of Economic Interest (Form 700) to make disclosure of their financial interests. The amount of disclosure depends upon the scope of the official’s or employee’s duties. Positions that involve voting on matters, negotiating contracts, or making recommendations on purchases without substantive review must be included in the code.

Persons holding positions listed in Government Code section 87200 (87200 filers) include City Councilmembers, the City Attorney, the City Manager, Planning Commissioners, and persons who manage public investments. These officials and employees are required by state law to file a full disclosure Form 700.

Agencies must review their codes biennially and amend their codes when necessary.

Background
On September 4, 2024, the City Council conducted a biennial review and adopted Resolution No. 24-083 approving amendments to the City’s Conflict of Interest Code (Attachment A). The Council also directed staff to revisit the item at the second Regular Council meeting in November to consider streamlining the current code disclosure categories. Accordingly, the draft resolution (Attachment B) proposes amending the City of Cupertino Conflict of Interest Code to update the disclosure categories and list of designated positions. 12 CC 12-03-2024
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2 Cupertino, like most cities has adopted the standard model Conflict of Interest Code prepared by the Fair Political Practices Commission and codified in California Code of Regulations Title 2, Section 18730. The model code establishes substantive requirements for the disclosure of financial interests and disqualification of public officials and City employees from participating in decisions in which they might have a private financial interest. Cities adopting the model code need only adopt an appendix containing a list of designated employees subject to the disclosure requirements and specifying the scope of interest those designated employees must disclose.

Cities may further tailor their reporting requirements based on the specific structure of the organization.

Designated Positions
The conflict of interest code must specifically list positions that make or participate in making governmental decisions. The list typically includes positions involved in voting on matters, negotiating contracts, or making recommendations on purchases, policies, or budget decisions, or advising or making recommendations to decision-makers on such matters. Designated positions can only be required to disclose interests that they may affect in the course of performing the positions duties. If the designated position does not participate in decisions affecting real property, then the disclosure of interest in real property is not required. The only proposed change to the list of designated employees is to reflect the newly revised disclosure categories. The City’s Conflict of Interest Code accurately reflects positions that may make or participate in making governmental decisions for the City.

Disclosure Categories
A primary purpose of a code is to require designated positions to disclose those types of investments, interests in real property, sources of income and business positions that may be affected in their decision-making. The local agency cannot require over-disclosure by a designated employee. Many officials and employees are assigned to the broadest disclosure category because they have the broadest duties and authority. Many other filers are assigned to the lower disclosure category. In the lower disclosure category, the financial interests required to be reported are more tailored to the designated filer’s position and excludes disclosure of interest in real property.

The current code includes six disclosure categories. For simplification and consistency with practices in peer jurisdictions, the proposed draft code has been updated to include only three categories. To that end, categories 5 and 6 in the current code, which require disclosure of only department-related interests, have been deleted from the proposed draft code. Categories 3 and 4, which track interests related to city related income have been replaced by a single vendor related category (category 3). Designated employees in this category are required to disclose investments, business positions and sources of income from sources that provide goods and services utilized by the City. This change is consistent with state law and modeled after similar approaches used by the cities of Sunnyvale and Mountain View. Categories 1 and 2 remain unchanged, and cover employees who must make full disclosure under all Form 700 schedules 13 CC 12-03-2024
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3 (category 1) or who are exempt from real property disclosure requirements because they do not make decisions affecting real property interests (category 2).

Staff recommends that the City Council adopt Resolution No. 24-___, which incorporates the revisions outlined above into an updated Conflict of Interest Code. If approved, the amended 2024 Local Agency Biennial Notice (Attachment D) would be filed with the adopted resolution verifying the changes.

Disclosure Categories in Other Jurisdictions
For reference, the disclosure categories established by other jurisdictions are below:

City of Mountain View
Category 1. All investments and sources of income, including personal and business entity income, all interests in real property, and all business positions.

Category 2. All investments and business entities, sources of business entity income, and business positions of the type which, within the past two years, have contracted with the City or which may reasonably be expected to contract with the City, or which may reasonably be expected to contract with the City within one year from the date of the latest Statement Of Economic Interest to provide services, supplies, materials, machinery or equipment.

Category 3. All investments and business entities, sources of business entity income, and business positions of the type which, within the past two years, have contracted with the City or which may reasonably be expected to contract with the City, or which may reasonably be expected to contract with the City within one year from the date of the latest Statement Of Economic Interest to provide services, supplies, materials, machinery, or equipment to the designated employee’s department.

City of Sunnyvale
Category 1. A designated employee in this category must report all investments, interests in real property owned in the City of Sunnyvale, sources of income including gifts, loans and travel payments, and business entities in which he or she is a director, officer, partner, trustee, employee or holds any position of management.

Category 2. A designated employee in this category must report sources of income including gifts, loans and travel payments, and business entities in which he or she has an investment or is a director, officer, partner, trustee, employee or holds any position of management, if the business entity or source of income is of the type which has done business with the City of Sunnyvale within the previous two years.

Category 3. A designated employee in this category must report sources of income including gifts, loans and travel payments, and business entities in which he or she has an investment or is a director, officer, partner, trustee, employee or holds any position of management, if the business entity or source of income is of the type which within the previous two years has provided services, equipment, lease space, materials or supplies to the City.

Next Steps
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4 Should Council move forward with the proposed amendments, the City of Cupertino’s Conflict of Interest Code would be updated with the revised disclosure categories and list of designated positions (Attachment C). The City Manager would also be authorized to sign the amended 2024 Local Agency Biennial Notice (Attachment D). If the Council does not move forward with the proposed amendments, the City’s current Conflict of Interest Code will remain in effect. The City Council conducted a biennial review and approved the current Conflict of Interest Code on September 4, 2024 (Attachment A). The current code is in conformance with State law. The next biennial review must be conducted no later than October 1, 2026.

Sustainability Impact
The implementation of electronic filing of all Form 700s has reduced paper consumption.

Fiscal Impact
There is no fiscal impact.

California Environmental Quality Act
Not applicable.

City Work Program (CWP) Item: No
CWP Item Description: N/A
Council Goal: N/A
_____________________________________
Prepared by: Kirsten Squarcia, City Clerk
Reviewed by: Christopher Jensen, City Attorney
Approved for Submission by: Tina Kapoor, Acting City Manager Attachments:

A – Adopted Resolution No. 24-083 and 2024 Local Agency Biennial Notice B - Draft Resolution and Conflict of Interest Code (redline) C – Draft Resolution and Conflict of Interest Code (clean) D – Amended 2024 Local Agency Biennial Notice
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RESOLUTION NO. 24 083

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO RESCINDING RESOLUTION NO. 22 120 AND AMENDING THE

CITY OF CUPERTINO CONFLICT OF INTEREST CODE

FOR OFFICIALS AND DESIGNATED EMPLOYEES
WHEREAS, the Political Reform Act of 1974, Government Code section 81000 et seq. the Act” or Political Reform Act”) governs the disclosure of political campaign contributions and spending by candidates and ballot measure committees, and sets ethics rules for state and local government officials that impose strict limits on decisions or votes that affect the officials financial interests;and WHEREAS, the City Clerk isthe local filing officer forall filings and statements required by the Political Reform Act including campaign contribution and expenditure reports from candidates for City Council, controlled committees and independent expenditure committees, as well as Statements of Economic Interest from current City officials, officers and designated employees,per the Citys Conflict of Interest Code; and WHEREAS, the
Political Reform Act requires every state orlocal government agency to adopt and promulgate a Conflict of Interest Code; and WHEREAS, the City Council last updated the City’s Conflict of Interest Code on September 20,2022by adoption of Resolution No.22120; and WHEREAS, the City Council now desires to amend the City’s Conflict of Interest Code to update the list of designated positions. NOW, THEREFORE,

THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY
RESOLVE ASFOLLOWS:1.That
Resolution No.22 120 is hereby rescinded; and 2.That
the terms of Title 2 California Code of Regulations Section 18730 and any amendments toitduly adopted by the FPPC shall,along with the Code entitled, City of Cupertino Conflict of Interest Code for Officials and Designated Employees” asset forth in Exhibit A along with attached appendices A and B, in which members, consultants, and employees are 16 CC 12-03-2024
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Resolution No. 24 083

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designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the City of Cupertino; and

3. That all Statements of Economic Interest shall be filed electronically with the City Clerk.

PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 4th day of September 2024, by the following vote.

Members of the City Council
AYES: Mohan, Fruen, Chao, Moore
NOES: None
ABSENT: Wei
ABSTAIN: None
SIGNED:

Sheila Mohan, Mayor
City of Cupertino
Date
ATTEST:

Kirsten Squarcia, City Clerk Date
9/11/2024
9/11/2024
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EXHIBIT A

CITY OF CUPERTINO CONFLICT OF INTEREST CODE

FOR OFFICIALS AND DESIGNATED EMPLOYEES
The Political Reform Act, Government Code section 81000 et seq. requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission has adopted a regulation, 2 Cal. Code Regs. section 18730, which contains the terms of a standard conflict of interest code. It can be incorporated by reference and may be amended by the Fair Political Practices Commission after public notice and hearings to conform to amendments to the Political Reform Act. Therefore, the terms of 2 Cal. Code Regs. section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference and, along with the attached Appendices A and B in which members, consultants, and employees are designated and disclosure categories are set forth shall constitute the conflict of interest code of the City of Cupertino.

Officials and designated employees under Government Code section 87200 shall file electronic statements of economic interests Form 700) with the City Clerk who will make the statements available for public inspection and reproduction. Gov.

Code, 81008,)
Upon receipt of the statements Form 700) of the City of Cupertino City Council, City Manager, City Attorney, City Treasurer, and Planning Commissioners, the agency shall electronically forward the original of these statements to the Fair Political Practices Commission. The City Clerk will electronically retain original statements for all other designated employees.

It has been determined that the positions listed below manage public investments and will file a statement of economic interests Form 700) pursuant to Government Code section 87200:

City Treasurer Director of Administrative Services)
Deputy City Treasurer Finance Manager)
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APPENDIX A

DESIGNATED POSITIONS AND

APPLICABLE REPORTABLE INTEREST CATEGORIES
Title Assigned Disclosure Category

ADMINISTRATIVE SERVICES, FINANCE HUMAN RESOURCES
Director of Administrative Services
Treasurer)
1 Gov. Code 87200 filer)
Finance Manager Deputy City
Treasurer)
1 Gov. Code 87200 filer)
Human Resources Manager 2
Budget Manager 2
Purchasing Manager 2
Senior Management Analyst 5
Human Resources Analyst I/II 5
Accountant I/II 5
Senior Accountant 5
Account Clerk I/II 5
Accounting Technician 5

APPOINTED OR ELECTED OFFICIALS COMMISSIONS
City Council 1 Gov. Code 87200 filers)
Audit Committee 2
Bicycle Pedestrian Commission 4
Arts and Culture Commission 4
Housing Commission 1
Library Commission 4
Parks and Recreation Commission 4
Planning Commission 1 Gov. Code 87200 filers)
Public Safety Commission 4
Sustainability Commission 4
Technology, Information,
Communications Commission
3 CITY ATTORNEY’ S OFFICE
City Attorney 1 Gov. Code 87200 filer)
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Title Assigned Disclosure Category
Senior Assistant City Attorney 1
Assistant City Attorney 1
Legal Services Manager 1
CITY MANAGER’S OFFICE
City Manager 1
Assistant City Manager 1
Deputy City Manager 1
Administration
Management Analyst 6
Senior Management Analyst 6
Executive Assistant to the City Manager 6
City Clerk’s Office
City Clerk 1
Deputy City Clerk 1
Communications Public Information
Communications and Marketing
Coordinator
Emergency Management
Assistant to the City Manager 1
Management Analyst 6
Community Relations Coordinator 6
Economic Development
Economic Development Manager 6

COMMUNITY DEVELOPMENT
Director of Community Development 1
Assistant Director of Community
Development
1 Planning
Planning Manager 1
Senior Planner 1
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Title Assigned Disclosure Category
Associate Planner 6
Assistant Planner 6
Management Analyst 6
Permit Technician 6
Building
Building Official 4
Deputy Building Official 4
Senior Building Inspector 4
Building Inspector 4
Permit Technician 6
Plan Check Engineer 6
Housing
Housing Manager 1
Senior Housing Coordinator 6
Code Enforcement
Senior Code Enforcement Officer 4
Code Enforcement Officer 4
Consultants
Consultants see Appendix B
definitions)
As determined by City Manager

INNOVATION TECHNOLOGY
Chief Technology Officer 1
Innovation and Technology Manager 5
Business Systems Analyst 5
Multimedia Communication Specialist 3
Management Analyst 6

PUBLIC WORKS
Director of Public Works 1
Assistant Director of Public Works 1
Capital Improvement Programs
Manager
1 Transportation Manager 1
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Title Assigned Disclosure Category
Senior Public Works Project Manager 1
Public Works Projects Manager 1
Environmental Programs Manager 1
Service Center Superintendent 5
Public Works Supervisor 6
City Engineer 1
Public Works Inspector 6
Senior Management Analyst 6
Management Analyst 6
Environmental Services Environmental Affairs
Environmental Programs Manager 1
Environmental Programs Specialist 5
Environmental Programs Assistant 5
Environmental Compliance Technician 6
Traffic Engineering
Senior Planner
Transit and Transportation)
1 Assistant Engineer 4
Transportation Manager 1
Senior Civil Engineer 1
Associate Civil Engineer 4
Senior Engineering Technician 6
Engineering Technician 6
Environmental Programs Assistant Safe
Routes to School)
5 PARKS AND RECREATION
Director of Parks and Recreation 1
Recreation Manager 5
Senior Management Analyst 6
Management Analyst 6
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Appendix B

DISCLOSURE CATEGORIES AND DEFINITIONS

1. FULL DISCLOSURE
What to report? All investments, positions in business entities, sources of income including gifts, loans, and travel payments), and interests in real property.

What Form 700 schedules? All Schedules A through E)

2. ALL INCOME
What to report?All investments, positions in business entities, and sources of income including gifts, loans, and travel payments).

What Form 700 schedules? A, C, D, E

3. CITY RELATED INCOME
What to report? All investments, positions in business entities, and sources of income including gifts, loans, and travel payments) if the source provides goods or services of the type utilized by or subject to the review or approval of the City.

What Form 700 schedules? A, C, D, E

4. CITY RELATED INCOME, REAL PROPERTY
What to report? All investments, positions in business entities, and sources of income including gifts, loans, and travel payments) if the source provides goods or services, of the type utilized by or subject to the review or approval of the City and all interests in real property.

What Form 700 schedules? All Schedules A through E)

5. DEPARTMENT RELATED INCOME
What to report?All investments, positions, in business entities, and sources of income including gifts, loans, and travel payments) if the source provides goods or services of the type utilized by or subject to the review or approval of the department in which that person is employed.

What Form 700 schedules? A, C, D, E

6. DEPARTMENT RELATED INCOME REAL PROPERTY
What to report?All investments, positions in business entities, and sources of income including gifts, loans, and travel payments) if the source provides goods or services of the type utilized by or subject to the review or approval of 23 CC 12-03-2024
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the department in which that person is employed, and all interests in real property.

What Form 700 schedules?All Schedules A through E)
Definitions
For the purposes of these disclosure categories, the definitions and regulations contained in the Political Reform Act, Government Code Sections 81000 et seq., and the Fair Political Practices Commission regulations at 2 Cal. Code Regs. Section 18730 shall apply.
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RESOLUTION NO. 24‐___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO RESCINDING RESOLUTION NO. 24‐083 AND AMENDING THE

CITY OF CUPERTINO CONFLICT OF INTEREST CODE

FOR OFFICIALS AND DESIGNATED EMPLOYEES
WHEREAS, the Political Reform Act of 1974, Government Code section 81000 et seq. (the “Act” or “Political Reform Act”), governs the disclosure of political campaign contributions and spending by candidates and ballot measure committees, and sets ethics rules for state and local government officials that impose limits on decisions or votes that affect the officialʹs financial interests; and WHEREAS, the City Clerk is the local filing officer for all filings and statements required by the Political Reform Act including campaign contribution and expenditure reports from candidates for City Council, controlled committees, and independent expenditure committees, as well as Statements of Economic Interest from current City officials and designated employees, per the Cityʹs Conflict of Interest Code; and WHEREAS, the Political Reform Act requires every state or local government agency to adopt and promulgate a Conflict of Interest Code; and WHEREAS, the City Council last updated the City’s Conflict of Interest Code on September 4, 2024 by adoption of Resolution No. 24‐083; and WHEREAS, the City Council now desires to amend the City’s Conflict of Interest Code to update the disclosure categories and the list of designated positions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY RESOLVE AS FOLLOWS:

1. That Resolution No. 24‐083 is hereby rescinded; and

2. That the terms of Title 2 California Code of Regulations section 18730 and any amendments to it duly adopted by the FPPC shall, along with the Code entitled, “City of Cupertino Conflict of Interest Code for Officials and Designated Employees” as set forth in Exhibit A along with attached Appendices A and B, in which members, consultants, and employees are 26 CC 12-03-2024
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Resolution No. 24‐___

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designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the City of Cupertino; and

3. That all Statements of Economic Interest shall be filed electronically with the City Clerk.

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
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EXHIBIT A

CITY OF CUPERTINO CONFLICT OF INTEREST CODE

Officials and designated employees under Government Code section 87200 shall file electronic statements of economic interests (Form 700) with the City Clerk who will make the statements available for public inspection and reproduction. (Gov.

Code, § 81008,)
Upon receipt of the statements (Form 700) of the City of Cupertino City Council, City Manager, City Attorney, City Treasurer, and Planning Commissioners, the agency shall electronically forward the original of these statements to the Fair Political Practices Commission. The City Clerk will electronically retain original statements for all other designated employees.

It has been determined that the positions listed below manage public investments and will file a statement of economic interests (Form 700) pursuant to Government Code section 87200:

City Treasurer (Director of Administrative Services)
Deputy City Treasurer (Finance Manager)

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APPENDIX A

DESIGNATED POSITIONS AND

APPLICABLE REPORTABLE INTEREST CATEGORIES
Title Assigned Disclosure Category

ADMINISTRATIVE SERVICES, FINANCE & HUMAN RESOURCES
Director of Administrative Services
(Treasurer)
1 (Gov. Code § 87200 filer)
Finance Manager (Deputy City
Treasurer)
1 (Gov. Code § 87200 filer)
Human Resources Manager 2
Budget Manager 2
Purchasing Manager 2
Senior Management Analyst 53
Human Resources Analyst I/II 53
Accountant I/II 53
Senior Accountant 53
Account Clerk I/II 53
Accounting Technician 53

APPOINTED OR ELECTED OFFICIALS & COMMISSIONS
City Council 1 (Gov. Code § 87200 filers)
Audit Committee 2
Bicycle Pedestrian Commission 41
Arts and Culture Commission 41
Housing Commission 1
Library Commission 41
Parks and Recreation Commission 41
Planning Commission 1 (Gov. Code § 87200 filers)
Public Safety Commission 41
Sustainability Commission 41
Technology, Information, &
Communications Commission
3 CITY ATTORNEY’S OFFICE
City Attorney 1 (Gov. Code § 87200 filer)

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Title Assigned Disclosure Category
Senior Assistant City Attorney 1
Assistant City Attorney 1
Legal Services Manager 1
CITY MANAGER’S OFFICE
City Manager 1
Assistant City Manager 1
Deputy City Manager 1
Administration
Management Analyst 61
Senior Management Analyst 61
Executive Assistant to the City Manager 61
City Clerk’s Office
City Clerk 1
Deputy City Clerk 1
Communications & Public Information
Communications and Marketing
Coordinator
1 Emergency Management
Assistant to the City Manager 1
Management Analyst 61
Community Relations Coordinator 61
Economic Development
Economic Development Manager 61

COMMUNITY DEVELOPMENT
Director of Community Development 1
Assistant Director of Community
Development
1 Planning
Planning Manager 1
Senior Planner 1
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Title Assigned Disclosure Category
Associate Planner 61
Assistant Planner 61
Management Analyst 61
Permit Technician 61
Building
Building Official 41
Deputy Building Official 41
Senior Building Inspector 41
Building Inspector 41
Permit Technician 61
Plan Check Engineer 61
Housing
Housing Manager 1
Senior Housing Coordinator 61
Code Enforcement
Senior Code Enforcement Officer 4
Code Enforcement Officer 4
Consultants
Consultants (see Appendix B
definitions)
As determined by City Manager

INNOVATION & TECHNOLOGY
Chief Technology Officer 1
Innovation and Technology Manager 53
Business Systems Analyst 53
Multimedia Communication Specialist 3
Management Analyst 61

PUBLIC WORKS
Director of Public Works 1
Assistant Director of Public Works 1
Capital Improvement Programs
Manager
1 Transportation Manager 1
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Title Assigned Disclosure Category
Senior Public Works Project Manager 1
Public Works Projects Manager 1
Environmental Programs Manager 1
Service Center Superintendent 53
Public Works Supervisor 61
City Engineer 1
Public Works Inspector 61
Senior Management Analyst 61
Management Analyst 61
Environmental Services & Environmental Affairs
Environmental Programs Manager 1
Environmental Programs Specialist 53
Environmental Programs Assistant 53
Environmental Compliance Technician 61
Traffic & Engineering
Senior Planner
(Transit and Transportation)
1 Assistant Engineer 41
Transportation Manager 1
Senior Civil Engineer 1
Associate Civil Engineer 41
Senior Engineering Technician 6
Engineering Technician 6
Environmental Programs Assistant (Safe
Routes to School)
53 PARKS AND RECREATION
Director of Parks and Recreation 1
Recreation Manager 53
Senior Management Analyst 61
Management Analyst 61

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Appendix B

DISCLOSURE CATEGORIES AND DEFINITIONS

1. FULL DISCLOSURECategory 1
What to report? All investments, positions in business entities, sources of income (including gifts, loans, and travel payments), and interests in real property.

What Form 700 schedules? All Schedules (A through E)

2. ALL INCOMECategory 2
What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments).

What Form 700 schedules? A, C, D, E

3. CITY‐RELATED INCOMECategory 3
What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments) from sources of the type that provide services, supplies, materials, machinery or equipment to the Cityif the source provides goods or services of the type utilized by or subject to the review or approval of the City.

What Form 700 schedules? A, C, D, E

4. CITY‐RELATED INCOME, REAL PROPERTY
What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments) if the source provides goods or services, of the type utilized by or subject to the review or approval of the City and all interests in real property.

What Form 700 schedules? All Schedules (A through E)

5. DEPARTMENT‐RELATED INCOME
What to report? All investments, positions, in business entities, and sources of income (including gifts, loans, and travel payments) if the source provides goods or services of the type utilized by or subject to the review or approval of the department in which that person is employed.

What Form 700 schedules? A, C, D, E

6. DEPARTMENT‐RELATED INCOME & REAL PROPERTY
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goods or services of the type utilized by or subject to the review or approval of the department in which that person is employed, and all interests in real property.

What Form 700 schedules? All Schedules (A through E)
Definitions
For the purposes of these disclosure categories, the definitions and regulations contained in the Political Reform Act, Government Code sections 81000 et seq., and the Fair Political Practices Commission regulations, 2 Cal. Code Regs. section 18730, shall apply.
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RESOLUTION NO. 24-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO RESCINDING RESOLUTION NO. 24-083 AND AMENDING THE

CITY OF CUPERTINO CONFLICT OF INTEREST CODE

FOR OFFICIALS AND DESIGNATED EMPLOYEES
WHEREAS, the Political Reform Act of 1974, Government Code section 81000 et seq. (the “Act” or “Political Reform Act”), governs the disclosure of political campaign contributions and spending by candidates and ballot measure committees, and sets ethics rules for state and local government officials that impose limits on decisions or votes that affect the official's financial interests; and WHEREAS, the City Clerk is the local filing officer for all filings and statements required by the Political Reform Act including campaign contribution and expenditure reports from candidates for City Council, controlled committees, and independent expenditure committees, as well as Statements of Economic Interest from current City officials and designated employees, per the City's Conflict of Interest Code; and WHEREAS, the Political Reform Act requires every state or local government agency to adopt and promulgate a Conflict of Interest Code; and WHEREAS, the City Council last updated the City’s Conflict of Interest Code on September 4, 2024 by adoption of Resolution No. 24-083; and WHEREAS, the City Council now desires to amend the City’s Conflict of Interest Code to update the disclosure categories and the list of designated positions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES HEREBY RESOLVE AS FOLLOWS:

1. That Resolution No. 24-083 is hereby rescinded; and

Page 2 ends

designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the City of Cupertino; and

3. That all Statements of Economic Interest shall be filed electronically with the City Clerk.

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
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EXHIBIT A

CITY OF CUPERTINO CONFLICT OF INTEREST CODE

It has been determined that the positions listed below manage public investments and will file a statement of economic interests (Form 700) pursuant to Government Code section 87200:

City Treasurer (Director of Administrative Services)
Deputy City Treasurer (Finance Manager)

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APPENDIX A

DESIGNATED POSITIONS AND

APPLICABLE REPORTABLE INTEREST CATEGORIES
Title Assigned Disclosure Category

ADMINISTRATIVE SERVICES, FINANCE & HUMAN RESOURCES
Director of Administrative Services
(Treasurer)
1 (Gov. Code § 87200 filer)
Finance Manager (Deputy City
Treasurer)
1 (Gov. Code § 87200 filer)
Human Resources Manager 2
Budget Manager 2
Purchasing Manager 2
Senior Management Analyst 3
Human Resources Analyst I/II 3
Accountant I/II 3
Senior Accountant 3
Account Clerk I/II 3
Accounting Technician 3

APPOINTED OR ELECTED OFFICIALS & COMMISSIONS
City Council 1 (Gov. Code § 87200 filers)
Audit Committee 2
Bicycle Pedestrian Commission 1
Arts and Culture Commission 1
Housing Commission 1
Library Commission 1
Parks and Recreation Commission 1
Planning Commission 1 (Gov. Code § 87200 filers)
Public Safety Commission 1
Sustainability Commission 1
Technology, Information, &
Communications Commission
3 CITY ATTORNEY’S OFFICE
City Attorney 1 (Gov. Code § 87200 filer)
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Title Assigned Disclosure Category
Senior Assistant City Attorney 1
Assistant City Attorney 1
Legal Services Manager 1
CITY MANAGER’S OFFICE
City Manager 1
Assistant City Manager 1
Deputy City Manager 1
Administration
Management Analyst 1
Senior Management Analyst 1
Executive Assistant to the City Manager 1
City Clerk’s Office
City Clerk 1
Deputy City Clerk 1
Communications & Public Information
Communications and Marketing
Coordinator
1 Emergency Management
Assistant to the City Manager 1
Management Analyst 1
Community Relations Coordinator 1
Economic Development
Economic Development Manager 1

COMMUNITY DEVELOPMENT
Director of Community Development 1
Assistant Director of Community
Development
1 Planning
Planning Manager 1
Senior Planner 1
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Title Assigned Disclosure Category
Associate Planner 1
Assistant Planner 1
Management Analyst 1
Permit Technician 1
Building
Building Official 1
Deputy Building Official 1
Senior Building Inspector 1
Building Inspector 1
Permit Technician 1
Plan Check Engineer 1
Housing
Housing Manager 1
Senior Housing Coordinator 1
Code Enforcement
Senior Code Enforcement Officer 4
Code Enforcement Officer 4
Consultants
Consultants (see Appendix B
definitions)
As determined by City Manager

INNOVATION & TECHNOLOGY
Chief Technology Officer 1
Innovation and Technology Manager 3
Business Systems Analyst 3
Multimedia Communication Specialist 3
Management Analyst 1

PUBLIC WORKS
Director of Public Works 1
Assistant Director of Public Works 1
Capital Improvement Programs
Manager
1 Transportation Manager 1
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Title Assigned Disclosure Category
Senior Public Works Project Manager 1
Public Works Projects Manager 1
Environmental Programs Manager 1
Service Center Superintendent 3
Public Works Supervisor 1
City Engineer 1
Public Works Inspector 1
Senior Management Analyst 1
Management Analyst 1
Environmental Services & Environmental Affairs
Environmental Programs Manager 1
Environmental Programs Specialist 3
Environmental Programs Assistant 3
Environmental Compliance Technician 1
Traffic & Engineering
Senior Planner
(Transit and Transportation)
1 Assistant Engineer 1
Transportation Manager 1
Senior Civil Engineer 1
Associate Civil Engineer 1
Senior Engineering Technician 6
Engineering Technician 6
Environmental Programs Assistant (Safe
Routes to School)
3 PARKS AND RECREATION
Director of Parks and Recreation 1
Recreation Manager 3
Senior Management Analyst 1
Management Analyst 1
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Appendix B

DISCLOSURE CATEGORIES AND DEFINITIONS

1. Category 1
What to report? All investments, positions in business entities, sources of income (including gifts, loans, and travel payments), and interests in real property.

What Form 700 schedules? All Schedules (A through E)

2. Category 2
What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments).

What Form 700 schedules? A, C, D, E

3. Category 3
What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments) from sources of the type that provide services, supplies, materials, machinery or equipment to the City.

What Form 700 schedules? A, C, D, E
Definitions
For the purposes of these disclosure categories, the definitions and regulations contained in the Political Reform Act, Government Code sections 81000 et seq., and the Fair Political Practices Commission regulations, 2 Cal. Code Regs. section 18730, shall apply.
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www.fppc.ca.gov
FPPC Advice: [email protected] (866.275.3772)

Page 1 of 1 ends

Name of Agency:

Mailing Address:

Contact Person: Phone No.

Email: Alternate Email:

Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency’s code includes disclosure by those agency officials who make or participate in making governmental decisions.

This agency has reviewed its conflict of interest code and has determined that (check one BOX):
An amendment is required. The following amendments are necessary:
(Check all that apply.)
{ Include new positions
{ Revise disclosure categories
{ Revise the titles of existing positions
{ Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions
{ Other (describe)
The code is currently under review by the code reviewing body. No amendment is required. (If your code is over five years old, amendments may be necessary.)
Verification (to be completed if no amendment is required) This agency’s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 1, 2024, or by the date specified by your agency, if earlier, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.

Amended 2024 Local Agency Biennial Notice
City of Cupertino
10300 Torre Avenue
Kirsten Squarcia, City Clerk 408-777-3223
[email protected] [email protected]
✔
✔
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CITY OF CUPERTINO
Agenda Item
24-13520 Agenda Date: 12/3/2024
Agenda #: 3.

Subject: Adopt the OPEB and Pension Trust Investment Policies (Continued from November 19, 2024) 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 11/26/2024
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CITY COUNCIL STAFF REPORT
Meeting: December 3, 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. 45 CC 12-03-2024
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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 46 CC 12-03-2024
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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.
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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.

This section has been expanded to address supplemental questions and concerns that were received shortly before the City Council Meeting.

The rationale for removing the 20% cap on international equity investments was to better align the portfolio with its performance benchmark, the MSCI All Cap World Index, which consists of approximately 65% US stocks and 35% non-US stocks. This adjustment ensures that the portfolio’s performance is more directly comparable to the benchmark and allows for greater diversification. If the restriction is removed, the current allocation to non-US equities would be approximately 25%, with the potential to increase at the portfolio manager’s discretion, within the scope of the policy’s overall investment objectives.

The Audit Committee reviewed and recommended this change, emphasizing the importance of alignment with the benchmark and maintaining the portfolio’s “Balanced” investment objective. It is important to note that all investments, including international equities, must comply with the policy’s stated principles of prudent investment, which prioritize diversification, risk management, and long-term returns.

While the removal of the cap provides additional flexibility, the City retains oversight through its investment policies and portfolio manager reporting requirements.

Additionally, the City Council can provide further direction regarding specific criteria or restrictions for international equity investments in future policy reviews, ensuring that investments align with the City’s broader goals and values.

An alternative to removing the cap would be to adjust the performance benchmark to align with a 20% international equity maximum allocation. However, this would limit the portfolio’s ability to match the diversification and returns of the MSCI All Cap World Index.

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. 48 CC 12-03-2024
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5 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:

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.

Next Steps
If the proposed investment policy changes are approved, the portfolio manager will strategically incorporate these changes into the investment strategy, aligning the portfolio 49 CC 12-03-2024
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6 allocations with the updated policy guidelines. This includes rebalancing investments as necessary to optimize performance while adhering to the revised policy framework.

If the proposed changes are not approved, the portfolio manager will continue to manage the portfolio based on the existing investment policy. However, maintaining the current policy may limit the portfolio’s ability to align with performance benchmarks, such as the MSCI All Cap World Index, potentially impacting long-term returns and diversification opportunities.

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.

Council Goal:

Sustainability and Fiscal Strategy
_____________________________________
Prepared by: Jonathan Orozco, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Tina Kapoor, Interim Assistant City Manager
Approved for Submission by: Pamela Wu, 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
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Other PostEmployment Benefits
(OPEB) Investment
Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:

December 3, 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
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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%
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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)
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 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).
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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.
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Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 City Manager’s signature: _______________________________ Date: _______________________________
Director of Administrative Services’ signature: _______________________________ Date: _______________________________
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Other PostEmployment Benefits
(OPEB) Investment
Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:

December 3, 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
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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%
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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)
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 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. 60 CC 12-03-2024
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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: _______________________________
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Revisions: 6.5.2018, 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________
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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 December 3, 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 3rd day of December 2024, by the following vote:

Vote Members of the City Council
AYES:

NOES:
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ABSENT:

ABSTAIN:

SIGNED:
________
Sheila Mohan, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________

Kirsten Squarcia, City Clerk
________________________
Date
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Pension Trust
Investment Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:

December 3, 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
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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%
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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
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 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. 68 CC 12-03-2024
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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.
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Revisions: 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 City Manager’s signature: _______________________________ Date: _______________________________
Director of Administrative Services’ signature: _______________________________ Date: _______________________________
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Pension Trust
Investment Policy
Citywide Policy Manual
Attachments: N/A
Effective Date:

December 3, 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
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Investment Objective: ‘Balanced’
This investment objective is designed to provide a moderate amount of current income with moderate growth of capital. Investors should have sufficienttolerance 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%
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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)
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 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. 74 CC 12-03-2024
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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: _______________________________
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Revisions: 11.19.2019, 11.17.2020, 12.7.2021, 12.06.2022, 12.05.2023, 12.03.2024 Director of Administrative Services’ signature: _______________________________ Date: _______________________________
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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 December 3, 2024.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 3rd day of December 2024, by the following vote:

Vote Members of the City Council
AYES:

NOES:

ABSENT: 77
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ABSTAIN:

SIGNED:
________
Sheila Mohan, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________

Kirsten Squarcia, City Clerk
________________________
Date
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CITY OF CUPERTINO
Agenda Item
24-13490 Agenda Date: 12/3/2024
Agenda #: 4.

Subject: Approve the November 18, 2024 City Council minutes Approve the November 18, 2024 City Council minutes
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Monday, November 18, 2024

SPECIAL MEETING
At 5:01 p.m., Mayor Sheila Mohan called the Special City Council Meeting to order in Cupertino City Hall Conference Room C, 10300 Torre Avenue and via teleconference.

ROLL CALL

Present: Mayor Sheila Mohan, Vice Mayor J.R. Fruen, and Councilmembers Liang Chao, Kitty Moore, and Hung Wei (participated remotely). Absent: none.

In open session prior to closed session, Mayor Mohan opened the public comment period regarding any item on the agenda. The following members of the public requested to speak:

Lisa Warren
Mayor Mohan closed the public comment period.

CLOSED SESSION

1. Subject: Public Employee Performance Evaluation (Gov. Code § 54957(b)(1)); Title: City Manager
Written communications for this item included emails to Council.

Council conducted the Performance Evaluation for City Manager.

2. Subject: Public Employee Performance Evaluation (Gov. Code § 54957(b)(1)); Title: City Attorney
Written communications for this item included emails to Council.

Council conducted the Performance Evaluation for City Attorney. 80 CC 12-03-2024
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City Council Minutes November 18, 2024

OPEN SESSION REPORT REGARDING CLOSED SESSION
City Clerk Kirsten Squarcia conducted the open session report regarding the closed session.

City Clerk Squarcia reported that there was no reportable action.

ADJOURNMENT
At 9:46 p.m., Mayor Mohan adjourned the Special City Council Meeting.

Minutes prepared by:
_________________________
Kirsten Squarcia, City Clerk
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CITY OF CUPERTINO
Agenda Item
23-12665 Agenda Date: 12/3/2024
Agenda #: 5.

Subject: Approve the November 19, 2024 City Council minutes Approve the November 19, 2024 City Council minutes
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Tuesday, November 19, 2024
At 6:46 p.m., Mayor Sheila Mohan called the Regular City Council Meeting to order and led the Pledge of Allegiance in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and via teleconference.

ROLL CALL

Present: Mayor Sheila Mohan, Vice Mayor J.R. Fruen, and Councilmembers Liang Chao, Kitty Moore, and Hung Wei (participated remotely). Absent: None.

CLOSED SESSION REPORT
City Attorney Chris Jensen conducted the closed session report. City Attorney Jensen reported that there was nothing to report.

CEREMONIAL ITEMS

1. Subject: Recognition of November 30, 2024 as Small Business Saturday Recommended Action: Recognize November 30, 2024 as Small Business Saturday Mayor Mohan recognized November 30, 2024 as Small Business Saturday.

PRESENTATIONS

2. Subject: Annual Report of the Technology, Information, and Communications Commission
Recommended Action: Receive report of annual activities of the Technology, Information, and Communications Commission
Written communications for this item included a presentation.

Technology, Information, and Communications Commission Chair Prabir Mohanty gave a presentation.
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Council received the report of annual activities of the Technology, Information, and Communications Commission.

3. Subject: Presentation from Cupertino Bhubaneswar Sister City Recommended Action: Receive presentation from Cupertino Bhubaneswar Sister City Written communications for this item included a presentation.

Cupertino Bhubaneswar Sister City Initiative Co-founder Mahesh Pakala gave a presentation.

Council received the presentation from Cupertino Bhubaneswar Sister City.

4. Subject: Presentation from Cupertino Toyokawa Sister City Recommended Action: Receive presentation from Cupertino Toyokawa Sister City Written communications for this item included a presentation.

Cupertino-Toyokawa Sister Cities President Alyssa Sakkas shared a video presentation and the 2024 student delegation provided comments.

Council received the presentation from Cupertino Toyokawa Sister City.

POSTPONEMENTS AND ORDERS OF THE DAY – None

ORAL COMMUNICATIONS
Written communications for this item included emails forwarded by Councilmembers.

The following members of the public spoke:

David Lim discussed pickleball courts at Memorial Park.

Keith Kreft discussed the proposed development on Linda Vista Drive.

Lakshmi, representing Ambedkar King Study Circle (AKSC), discussed caste discrimination.

Shan My Gavel, representing Ambedkar King Study Circle (AKSC), discussed caste discrimination.

Karthikeyan, representing Ambedkar King Study Circle (AKSC), discussed caste 84 CC 12-03-2024
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discrimination.

Jean Bedord discussed the City Manager and City Attorney performance evaluations.

Louise Saadati discussed the City Manager and City Attorney performance evaluations.

David discussed the rezoning of Linda Vista Drive.

San R discussed various topics including Councilmembers, Council actions, and the election.

Debbie Timmers discussed the City Manager and City Attorney performance evaluations.

Lisa discussed the City Manager and City Attorney performance evaluations.

Sashi Begur discussed various topics including SB 403, transparency, Council actions, and rezoning.

Mayor Mohan closed the public comment period.

CONSENT CALENDAR (Items 5-15)
Items 12 and 14 were removed from the Consent Calendar by Councilmember Chao and items 7 and 15 were removed by Councilmember Moore.

MOTION: Fruen moved (no second) to approve the items on the Consent Calendar except for as indicated. The motion carried with the following vote: Ayes: Mohan, Fruen, Chao, Moore, and Wei. Noes: None. Abstain: None. Absent: None.

Items 7, 12, 14, and 15 were placed after the Action Calendar for consideration per rule.

5. Subject: Approve the October 15, 2024 City Council minutes Recommended Action: Approve the October 15, 2024 City Council minutes

6. Subject: Approve the October 23, 2024 City Council minutes Recommended Action: Approve the October 23, 2024 City Council minutes

8. Subject: Ratifying Accounts Payable for the periods ending October 4, 2024; October 11, 2024; October 18, 2024; and October 25, 2024
Recommended Action: A. Adopt Resolution No. 24-100 ratifying Accounts Payable for the Period ending October 4, 2024;
B. Adopt Resolution No. 24-101 ratifying Accounts Payable for the Period ending 85 CC 12-03-2024
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October 11, 2024;
C. Adopt Resolution No. 24-102 ratifying Accounts Payable for the Period ending October 18, 2024; and
D. Adopt Resolution No. 24-103 ratifying Accounts Payable for the Period ending October 25, 2024
Written communications for this item included emails to Council.

9. Subject: Adoption of amendments to Cupertino Municipal Code Chapter 2.32 (Planning Commission), Chapter 2.74 (Technology, Information, and Communications Commission), Chapter 2.86 (Housing Commission), Chapter 11.08 (Bicycles), and Chapter 13.04 (Parks), and repeal of Municipal Code Chapter 15.04 (Waterworks System - Rates and Charges).

Recommended Action: Conduct the second reading of and adopt Ordinance No. 24-2267: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO REPEALING MUNICIPAL CODE CHAPTER 15.04 AND AMENDING MUNICIPAL CODE CHAPTERS 2.32, 2,74, 2.86, 11.08, AND 13.04.”

10. Subject: Mitigation Fee Act - the Annual & Five-Year Report for Fiscal Year (FY) 2023-2024
Recommended Action: Adopt Resolution No. 24-104 entitled "A Resolution of the City of Cupertino City Council approving the Annual and Five-Year Mitigation Fee Report for Fiscal Year ending June 30, 2024, and making required findings" to:

1. Make the required findings; and

2. Approve the Annual & Five-Year Mitigation Fee Report for the Fiscal Year ending June 30, 2024, as required by Government Code Section 66000 et seq.

Written communications for this item included emails to Council.

11. Subject: Adopt a maximum rate schedule for Rate Period Five (RP 5) for Recology to provide recycling, organics, and solid waste collection, recycling and organics processing services, and transport for disposal as calculated using the allowed and approved methodology in the Franchise Agreement (Attachment A) Recommended Action: Adopt Resolution No. 24-105 (Attachment B) to:
1) Adopt a maximum rate schedule for RP 5 for Recology to provide recycling, organics, and solid waste collection, recycling and organics processing services, and transport for disposal pursuant to the Franchise Agreement (Attachment A (FA Exhibit E1)); and
2) Authorize the use of $394,465 of restricted-use Enterprise Funds to smooth and mitigate the RP 5 adjustment

13. Subject: First Amendment to contract with Azteca Systems, LLC., for Cityworks, 86 CC 12-03-2024
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Cupertino’s Asset Management System subscription service, for a total not-to-exceed amount of $362,584.37, and extending the contract date to December 30, 2028.

Recommended Action: Authorize the City Manager to execute a First Amendment of the contract with Azteca Systems, LLC., for Cityworks, Cupertino’s Asset Management System subscription service, for a total not-to-exceed amount of $362,584.37 and extending the contract date to December 30, 2028.

At 8:03 p.m. Mayor Mohan recessed the meeting. The meeting reconvened at 8:15 p.m. with all councilmembers present.

PUBLIC HEARINGS - None

ACTION CALENDAR

16. Subject: Adopt an 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. 24-109 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 Written communications for this item included a supplemental report with staff responses to councilmember questions and emails to Council. 87 CC 12-03-2024
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Director of Administrative Services Kristina Alfaro gave a presentation.

Councilmembers asked questions and made comments.

Mayor Mohan opened the public comment period and the following members of the public spoke.

Sujatha Venkatraman, representing West Valley Community Services Rhoda Fry
San R
Lisa
Mayor Mohan closed the public comment period.

MOTION: Chao moved and Moore seconded to adopt Option A, do nothing and bring the item back to Council in January to consider budget allocations holistically in every area, including the areas where Council made reductions in the last year and any areas that might need a new allocation, with a study session in January for Council and public consideration; and revisit the items before the final budget adoption in June. Chao amended the motion to allocate $10 million for a CalPERS Additional Discretionary Payment (ADP) and retain the rest of the motion as is (Moore declined the amendment and it was not included in the motion). Council did not vote on this motion.

SUBSTITUTE MOTION: Chao moved and Fruen seconded a substitute motion to adopt Option A, with the remaining amount placed into a committed reserve fund, and a $10 million allocation for a CalPERS Additional Discretionary Payment (ADP). Chao amended the substitute motion to bring the item back to Council in January to consider the budget allocation holistically in every area, including the reductions made by Council last year, with a study session in January for Council and public consideration (Fruen accepted the amendment). The amended substitute motion carried with the following vote: Ayes: Mohan, Fruen, Chao, and Wei. Noes: Moore. Abstain: None.

Absent: None.

Chao requested an informational memo providing information on funding by other jurisdictions in CalPERS and how the City compares, combined with the City's investment in Public Agency Retirement Services (PARs).

MOTION: Fruen moved and Moore seconded to reorder the agenda items to hear items 12, 14, 15, and 7. The motion carried with the following vote: Ayes: Mohan, Fruen, Chao, Moore, and Wei.

Noes: None. Abstain: None. Absent: None.
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ITEMS REMOVED FROM THE CONSENT CALENDAR

12. Subject: Award a contract to Lifetime Activities Inc. for Sports Center Instruction, Court Maintenance, and Retail Services at the Cupertino Sports Center for a total not-to-exceed amount of $24,000,000.

Recommended Action: 1. Award a 10-Year contract to Lifetime Activities Inc. to provide Sports Center Instruction, Court Maintenance, and Retail Services at the Cupertino Sports Center for a total not-to-exceed amount of $24,000,000 with the estimated revenue amount of $3,450,000; and

2. Authorize the City Manager to execute the contract with Lifetime Activities Inc. consistent with City Council direction.

Written communications for this item included a supplemental report with staff responses to councilmember questions and emails to Council.

This item was pulled from the consent calendar for discussion.

Mayor Mohan opened the public comment period and the following members of the public spoke.

Randy Kunkee
Vidya
Sri
Andrew Wu
San R
Vitaly Gorin
Kaz Shin
Lisa
Felix Katsman
Mayor Mohan closed the public comment period.

MOTION: Chao moved to extend the current contract with Lifetime Activities for another six months and conduct another Request for Proposal (RFP) to clarify for applicants what flexible options can be proposed, such as different percentage of revenue, one-time donation, or any other options applicants can propose; and to provide more information on the City's operation and expectations, with more information on the quality of coaches available, rated by high, medium, and beginner levels. Council did not vote on this motion.

MODIFIED MOTION: Chao moved and Moore seconded a modified motion to reject the proposal with Lifetime Activities and bring the item back to the next Council meeting to 89 CC 12-03-2024
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consider extending the current contract for six months and revising the Request for Proposal (RFP) to clarify what flexible options can be proposed by applicants, such as different percentage of revenue, one-time donation, or any other options applicants can propose; and to provide more information on the City's operation and expectations, with more information on the quality of coaches available, rated by high, medium, and beginner levels. Moore made a friendly amendment to review the percentage of revenue that the City receives and provide a staff report explaining the reasons for the reduction in the Projected City New Revenue. (Chao consented to the friendly amendment). Council did not vote on this motion.

SUBSTITUTE MOTION: Mohan moved and Fruen seconded a substitute motion to:

1. Award a 5-Year contract to Lifetime Activities Inc. to provide Sports Center Instruction, Court Maintenance, and Retail Services; and

2. Authorize the City Manager to execute the contract with Lifetime Activities Inc. consistent with City Council direction.

The substitute motion carried with the following vote: Ayes: Mohan, Fruen, Moore, and Wei. Noes: Chao. Abstain: None. Absent: None.

ADJOURNMENT
At 10:45 p.m., Mayor Mohan adjourned the Regular City Council Meeting per rule. There was no Council discussion on the remaining agenda items.

14. Subject: City Manager’s First Quarter Financial Report for Fiscal Year (FY) 2024-25 Recommended Action: A. Accept the City Manager’s First Quarter Financial Report for Fiscal Year 2024-25; and
B. Adopt Resolution No. 24-106 approving Budget Modification No. 2425-367, increasing appropriations by $331,128 fund by unassigned fund balance.

Written communications for this item included a supplemental report with staff responses to councilmember questions, Attachment J - Competitive Grants Revised, and emails to Council.

This item was pulled from the consent calendar for discussion.

This item was continued to the December 3, 2024 Regular City Council Meeting per rule.

15. Subject: Adopt the OPEB and Pension Trust Investment Policies Recommended Action: 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 This item was pulled from the consent calendar for discussion. 90 CC 12-03-2024
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This item was continued to the December 3, 2024 Regular City Council Meeting per rule.

7. Subject: Resolution amending the City of Cupertino Conflict of Interest Code for officials and designated employees; Amended 2024 Local Agency Biennial Notice Recommended Action: 1.) Adopt Resolution No. 24-099 rescinding Resolution No. 24-083 and amending the City of Cupertino Conflict of Interest Code for officials and designated employees; and

2.) Authorize the City Manager to sign the amended 2024 Local Agency Biennial Notice Written communications for this item included emails to Council.

This item was pulled from the consent calendar for discussion.

This item was continued to the December 3, 2024 Regular City Council Meeting per rule.

CITY MANAGER REPORT
Council did not hear this item.

ORAL COMMUNICATIONS - CONTINUED – None

COUNCILMEMBER REPORTS

17. Subject: Councilmember Reports
Councilmembers reported on their various committees and events as provided in the published agenda.

FUTURE AGENDA ITEMS
Council did not hear this item.

Minutes prepared by:
_________________________
Kirsten Squarcia, City Clerk
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CITY OF CUPERTINO
Agenda Item
24-13430 Agenda Date: 12/3/2024
Agenda #: 6.

Subject: Declare properties as having potential fire hazards from weeds or other potential nuisances for the Cupertino Weed Abatement Program.

Adopt Resolution No. 24-111 declaring properties as having potential fire hazards from weeds or other potential nuisances (Attachment A) and set hearing on January 22, 2025 to declare a public nuisance and to consider objections for proposed removal.

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1 CITY COUNCIL STAFF REPORT
Meeting: December 3, 2024
Subject
Declare properties as having potential fire hazards from weeds or other potential nuisances for the Cupertino Weed Abatement Program.

Recommended Action
Adopt Resolution No. 24-____ declaring properties as having potential fire hazards from weeds or other potential nuisances (Attachment A) and set hearing on January 22, 2025 to declare a public nuisance and to consider objections for proposed removal.

Reasons for Recommendation
The Cupertino Weed Abatement Program is in place to prevent fire hazards and other nuisances posed by vegetative growth (weeds) and the accumulation of combustible materials. This program is managed by the Santa Clara County Department of Agriculture. Cupertino Municipal Code Chapter 9.08 requires property owners to remove or destroy weeds on their property for fire and public health protection. Cupertino Municipal Code Section 9.08.020 states:

Whenever any weeds are growing upon any private property or properties or in any street or alley within the City. The City Council shall pass a resolution declaring the same to be a public nuisance and order the County Agricultural Commissioner to give notice of the passage of such resolution as provided in this chapter, and state therein that, unless such nuisance is abated without delay by the destruction or removal of such weeds, the work of abating such nuisance will be done by the County Agricultural Commissioner, and the expense thereof assessed upon the lots and lands from which, and/or in the front and rear of which, such weeds have been destroyed or removed. Such resolution shall fix the time and place for hearing any objections to the proposed destruction or removal of the weeds.

The weed abatement process is in place to notify the property owners of this responsibility, authorize the County to remove the weeds if the property owner does not do so, and allow the County to recover the costs of abatement.
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2 Process for Weed Abatement Program Outlined
The weed abatement process consists of nine steps that begin in November and go through August of each year, as shown on the following list. Step One of the process is for the City Council to adopt a resolution declaring properties as having potential fire hazards from weeds or other potential nuisances and to set a hearing on January 22, 2025, to declare a public nuisance and to consider objections for proposed removal. On November 1, 2024, the County filed with the City the report of properties that have been identified as being noncompliant with the abatement program requirements (Attachment B, Exhibit A in Resolution).

The steps in the process are outlined below:

1. County prepares a report of all properties that have been non-compliant in removing weeds in the last three years and provides that report to the City and the City sets a January hearing date (November-December) (Attachment B, Exhibit A in Resolution).

2. County sends a notice to the property owners on the report notifying them of the hearing date and explaining that they must remove or destroy weeds by the abatement deadline of April 30, 2025 or it will be done for them, with cost of the abatement plus administrative costs assessed to their property (December).

3. City sends a courtesy letter to property owners listed on the report, notifying them of the hearing and the abatement deadline. (January).

4. City Council holds the hearing to consider objections by property owners and adopts a resolution declaring weeds a public nuisance and ordering abatement (January).

5. County sends a courtesy letter to property owners listed on the report, notifying them again of the abatement deadline, and noting that they will work with the property owner to be sure the weeds are removed (January-February).

6. City sends a courtesy letter to property owners listed on the report, reminding them of the abatement deadline (March).

7. After April 30, the properties are inspected by the County to verify that weeds were removed and proceeds with abatement if the property fails the inspection. The County makes a report of all costs associated with the abatement and provides that report to the City (June-July).

8. City notifies the property owners listed on the assessment report, notifying them of the hearing date (July-August).
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3 9. City Council holds a hearing, considers any disputes, and adopts a resolution placing a lien assessment on the properties to allow the County to recover the cost of weed and/or brush abatement (July)
The attached draft resolution (Attachment A) will declare the listed properties as being a potential fire hazard due to weeds and/or combustible materials, or a potential nuisance due to weeds that are noxious, dangerous, or pose health risks. If Council adopts the resolution, property owners on the report will receive notices from the County and the City indicating that public nuisance declared their property must be abated, and that the City Council will conduct a public hearing on January 22, 2025 in order to consider objections to the proposed abatement.

Next Steps
During the public hearing on January 22, the Council will be asked to approve the Weed Abatement Program report and to declare a public nuisance. If approved, the County will be authorized to perform an inspection of the properties on the report to determine if the property has met the Weed Abatement Program requirements. Property owners will have until April 30, 2025 to abate their property. If the Council does not move forward with declaring properties as having potential fire hazards from weeds and set a hearing on January 22, the County will not proceed with notifying property owners of their responsibility to remove or destroy weeds on their property by the abatement deadline. If the Council does not conduct a public hearing for properties listed on the Weed Abatement Program report and declare a nuisance, the County will not proceed with inspecting the properties on the report to determine if the property has met the Weed Abatement Program requirements.

Fiscal Impact
No fiscal impact.

Sustainability Impact
There is no sustainability impact.

California Environmental Quality Act
The weed abatement program is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15304 (minor alterations to land) and section 15321 (enforcement actions by regulatory agencies).
_____________________________________
Reviewed by: Kirsten Squarcia, City Clerk
Reviewed by: Tina Kapoor, Interim Assistant City Manager Approved for Submission by: Pamela Wu, City Manager
Attachments:

A - Draft Resolution and Exhibit A
B – Cupertino Commencement Report (Exhibit A)
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RESOLUTION NO. 24-____

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

DECLARING WEEDS ON CERTAIN DESCRIBED PROPERTY TO BE A

POTENTIAL FIRE HAZARD OR OTHER POTENTIAL NUISANCES AND

SETTING A HEARING TO DECLARE PUBLIC NUISANCE AND FOR

OBJECTIONS TO PROPOSED REMOVAL
WHEREAS, weeds as described in Chapter 9.08 of the Cupertino Municipal Code are growing in the City of Cupertino upon certain streets, sidewalks, highways, roads and private property; and
WHEREAS, said weeds are undesirable, noxious, and dangerous and/or due to their rapid growth are or may become a fire menace; as such, said weeds constitute a potential public nuisance under state law and Chapter 9.08 of the Cupertino Municipal Code; and
WHEREAS, property owners and other persons occupying or having charge or control of any building, lot, or premises within the City are required to remove weeds in accordance with the provisions of Chapter 9.08 of the Cupertino Municipal Code;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cupertino as follows:

1. Weeds growing upon any private property or in any street or alley within the City in violation of Cupertino Municipal Code, Chapter 9.08 constitute a public nuisance;

2. The weeds found on the streets, sidewalks, highways, roads and private property, which properties are identified by common names or by reference to the tract, block, lot, code area, and parcel number on the report prepared by the County Agricultural Commissioner and attached hereto as Exhibit A, are declared as having potential fire hazards or other potential nuisances due to weeds that are noxious, dangerous, or pose health risks;

3. That the 22nd day of January, 2025, at the hour of 6:45 p.m., or as soon thereafter as the matter can be heard, in the Council Chamber in the Community Hall, City of Cupertino and via teleconference, with details on 96 CC 12-03-2024
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Resolution No. 24-____

Page 2 ends

how to attend the meeting appearing on the City Council agenda for that date, are hereby set as the time and place to determine whether the condition is a public nuisance and where all property owners having any objections to the proposed removal of such weeds may be heard;

4. That the Agricultural Commissioner is hereby designated and ordered to give notice of the adoption of this resolution, in the manner and form provided in Chapter 9.08 of the Cupertino Municipal Code.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 3rd day of December 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
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CITY OF CUPERTINO Exhibit A
1 10213 MINER PL 316-26-065 CHIANG ALEX H AND ANNE 10213 MINER PL CUPERTINO CA 95014-2201 2 21001 HAZELBROOK DR 326-28-095 JAGANATHAN, RAMESH AND 21001 HAZELBROOK DR CUPERTINO CA 95014-1628 3 10301 BEARDON DR 326-30-042 CHEN, WENHAU HORUS TRUSTEE & 20711 FARGO DR CUPERTINO CA 95014-1903 4 20847 GARDEN GATE DR 326-30-048 PADMANABAN, GOVINDARAJ A 20847 GARDEN GATE DR CUPERTINO CA 95014-1807 5 10467 GLENCOE DR 326-30-106 ZHAI, JLANJUN AND WEI , LI 11566 FALLCREEK SPRING CT CUPERTINO CA 95014-5118 6 10450 GLENCOE DR 326-30-139 WOODWARD, DOUGLAS C TRUSTEE 10450 GLENCOE DR CUPERTINO CA 95014-1816 7 22645 SAN JUAN RD 342-17-067 MULLEN, EVA JO TRUSTEE PO BOX 835 CUPERTINO CA 95015-0835 8 10611 SANTA LUCIA RD 342-17-095 HUNTS, SUSAN E ET AL 10611 SANTA LUCIA RD CUPERTINO CA 95014-3937 9 EL CERRITO RD 342-21-004 ITEM, WERNER TRUSTEE & ET AL 22670 SAN JUAN RD CUPERTINO CA 95014-3933 10 (LAND ONLY) 342-45-001 CHAMBERLAIN, JACK T TRUSTEE 655 SKYWAY UNIT 230 SAN CARLOS CA 94070 11 23025 VOSS AVE 342-50-015 SAMPATH, NANDAKUMAR AND 23025 VOSS AVE CUPERTINO CA 95014-2661 12 VOSS AVE 342-50-019 CHAMBERLAIN, JACK T TRUSTEE 655 SKYWAY 230 SAN CARLOS CA 94070 13 22540 STEVENS BL 342-66-001 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 14 22536 STEVENS BL 342-66-002 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 15 22532 STEVENS BL 342-66-003 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 16 22528 STEVENS BL 342-66-004 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 17 22524 STEVENS BL 342-66-005 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 18 21542 REGNART RD 356-23-040 LI, XUESONG AND TU , YITSEN 21542 REGNART RD CUPERTINO CA 95014-4819 19 22028 LINDY LN 356-27-007 THOMAS, TONY G AND MATHEW , 22028 LINDY LN CUPERTINO CA 95014-4811 20 22090 LINDY LN 356-27-020 HANGGI, EVELYN B TRUSTEE 61145 WARD RD BEND OR 97702 21 22032 LINDY LN 356-27-025 DE, KALPAJIT AND MAJUMDER , 22032 LINDY LN CUPERTINO CA 95014-4811 22 22400 JANICE AV 357-01-051 HSU HUI-CHI AND LAI HSIU-CHEN ET 22400 JANICE AVE CUPERTINO CA 95014 23 10164 S FOOTHILL BLV 357-01-091 MCKERNAN, DANIEL S AND 10164 S FOOTHILL BLVD CUPERTINO CA 95014-2602 24 10209 CARMEN RD 357-02-001 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-2707 24 records of 104 Santa Clara County Weed Abatement Program Page 1 98 CC 12-03-2024
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CITY OF CUPERTINO Exhibit A
25 10290 MIRA VISTA RD 357-02-024 YEN JOSEPH JENKUN AND LI 10290 MIRA VISTA RD CUPERTINO CA 95014-2705 26 22284 PALM AVE 357-04-032 WATANABE, RYOJI AND LI , LILY C 22284 PALM AVE CUPERTINO CA 95014-2709 27 10234 SCENIC BLV 357-08-052 XIE, WEI ET AL 18255 CLEMSON AVE SARATOGA CA 95070 28 10234 SCENIC BLV 357-08-053 XIE, WEI ET AL 18255 CLEMSON AVE SARATOGA CA 95070 29 10234 SCENIC BLV 357-08-054 XIE, WEI ET AL 18255 CLEMSON AVE SARATOGA CA 95070 30 20950 STEVENS BL 359-07-006 BARTELS PROPERTIES ET AL 865 COTTON ST MENLO PARK CA 94025-5610 31 10476 S STELLING RD 359-13-136 WU, YUN JUNG AND CHIN-YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-1809 32 10468 S STELLING RD 359-13-137 WU, YUN JUNG AND CHIN-YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-1809 33 7540 MCCLELLAN RD 359-19-043 TIWARI, ANOOP KUMAR TRUSTEE & 7540 MCCLELLAN RD CUPERTINO CA 95014-2943 34 20860 MCCLELLAN RD 359-20-030 ALPHAMCCLELLAN LLC 97 BOSTON AVE SAN JOSE CA 95128-1911 35 CRANBERRY DR 362-02-048 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 36 CRANBERRY DR 362-04-058 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 37 RAINBOW DR 362-09-026 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 38 7898 FIESTA LN 362-15-012 KRIMSON COAST HOLDINGS LLC 1509 LAURELWOOD SAN JOSE CA 95138-0000 39 362-16-037 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 40 362-19-033 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 41 362-31-030 ALMASI, AZITA TRUSTEE & ET AL 965 LAUREL GLEN DR PALO ALTO CA 94304-1323 42 S STELLING RD 366-09-028 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 43 STAUFFER LN 366-09-053 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 44 1258 S STELLING RD 366-11-109 VASAVAKUL, THAVEESINN AND 1258 S STELLING RD CUPERTINO CA 95014-5257 45 21670 RAINBOW CT 366-38-005 CHELLADURAI, JAYAKUMAR AND 21670 RAINBOW CT CUPERTINO CA 95014-4829 46 22365 REGNART RD 366-40-004 KOLLIPARA, RAVINDRANATH AND 22365 REGNART RD CUPERTINO CA 95014-4824 47 22033 REGNART RD 366-46-005 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-4979 48 22045 REGNART RD 366-46-006 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-4979 48 records of 104 Santa Clara County Weed Abatement Program Page 2 99 CC 12-03-2024
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CITY OF CUPERTINO Exhibit A
49 19990 S HALL CT 369-04-017 LAMBIE, RICHARD H TRUSTEE 367 S BAYWOOD AVE SAN JOSE CA 95128 50 6611 JOHN DR 369-24-024 HU, PING AND WEI 6611 JOHN DR CUPERTINO CA 95014-4562 51 898 BRENT DR 369-24-025 KUOK, CHUN FREDERICK 898 BRENT DR CUPERTINO CA 95014-4553 52 885 BETLIN AVE 369-27-028 LEE, TSUNG-EN TRUSTEE & ET AL 701 SENECA ST PALO ALTO CA 94301 53 10539 S BLANEY AVE 369-33-001 CHANG, MINGO M AND YOUNG , 10539 S BLANEY AVE CUPERTINO CA 95014-4542 54 10710 10710 S DE 369-37-028 APRICOT VILLAGE LLC 991 W HEDDING ST SAN JOSE CA 95126-1257 55 19361 PHIL LN 375-05-029 LI, YIMIN AND HUANG , YUANYUAN 19361 PHIL LN CUPERTINO CA 95014-3429 56 10067 S TANTAU AVE 375-07-007 WU, HUNGJEN HENRY 10067 S TANTAU AVE CUPERTINO CA 95014-3541 57 19160 COZETTE LN 375-07-022 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-2707 58 10080 S TANTAU AVE 375-07-042 MAHAJAN, HAMENT AND MANJU 10080 S TANTAU AVE CUPERTINO CA 95014-3542 59 10177 JUDY AVE 375-07-056 YANG, YI-NING 10177 JUDY AVE CUPERTINO CA 95014-3522 60 19148 LOREE AVE 375-08-002 LO, SHIHCHE AND WANG , PEICHEN 19148 LOREE AVE CUPERTINO CA 95014-3539 61 10399 S TANTAU AVE 375-08-026 GUY, JOY M TRUSTEE 1174 CANYONWOOD CT APT WALNUT CREEK CA 94595-3629 62 10024 BRET AVE 375-11-047 10024 BRET LLC 1028 POLK AVE SUNNYVALE CA 94086-7440 63 10200 STERN AV 375-12-002 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 64 18904 ARATA WA 375-13-003 WU, BENJAMIN HONG AND 20988 FAIRWOODS CT CUPERTINO CA 95014-4200 65 10365 MORETTI DR 375-14-011 LOK, JAMES S AND JANE F TRUSTEE 3926 KINGRIDGE DR SAN MATEO CA 94403 66 10360 MORETTI DR 375-15-005 BHARDWAJ, AMIT AND MANGAL , 10360 MORETTI DR CUPERTINO CA 95014-3639 67 10464 MORETTI DR 375-16-042 PENTA-LOURDUSAMY, LEEMA J 375 MINUTE ARMS RD UNION NJ 07083-9125 68 18731 BARNHART AVE 375-17-048 XIE, DEPING AND SUN , HUAMIN 18731 BARNHART AVE CUPERTINO CA 95014-3803 69 18755 BARNHART AVE 375-17-051 JOHNSON, ALLEN R 1220 TASMAN DR SPC 513 SUNNYVALE CA 94089 70 10361 JOHNSON AV 375-18-039 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 71 10542 STERLING BL 375-23-032 HSU ALLEN K AND CINDY S TRUSTEE 10229 SCENIC BLVD CUPERTINO CA 95014-2724 72 10460 STERLING BLV 375-23-041 ZHANG, AILI 10460 STERLING BLVD CUPERTINO CA 95014-3832 72 records of 104 Santa Clara County Weed Abatement Program Page 3 100
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CITY OF CUPERTINO Exhibit A
73 10308 STERLING BLV 375-24-017 HAO, STEVE MIN AND SUN , QING 6962 BOLLINGER RD SAN JOSE CA 95129-2847 74 18621 RUNO CT 375-25-023 WANG, HENG-YUAN AND LEE , 18621 RUNO CT CUPERTINO CA 95014-3865 75 18730 BARNHART AVE 375-27-001 VASILIEV, OLGA 18730 BARNHART AVE CUPERTINO CA 95014-3804 76 18781 TUGGLE AVE 375-27-025 CAMPBELL, MICHAEL D P O BOX 5345 SAN JOSE CA 95150-5345 77 18760 BARNHART AV 375-27-041 HALL, MARTHA S 18760 BARNHART AVE CUPERTINO CA 95014-3804 78 10589 GASCOIGNE DR 375-28-011 ZHAI, JIANJUN 11566 FALLCREEK SPRING CT CUPERTINO C CA 95014-5118 79 10624 JOHNSON AVE 375-28-026 ANANTH, SHARATH AND BHAT , 10624 JOHNSON AVE CUPERTINO CA 95014-3817 80 10692 GASCOIGNE DR 375-29-020 YU, DONALD AND JEWELEEH 10692 GASCOIGNE DR CUPERTINO CA 95014-3846 81 10750 MINETTE DR 375-31-038 WU, JENNIFER AND LIU , JAMES 10136 ENGLISH OAK WAY CUPERTINO CA 95014-5609 82 10740 MINETTE DR 375-31-039 CHEN, HUNG JUNG AND LI , MEI YI 10740 MINETTE DR CUPERTINO CA 95014-3615 83 10728 CARVER DR 375-32-010 MYOUNG, SOUNG HO AND LEE , EUN 10728 CARVER DR CUPERTINO CA 95014-3609 84 10630 CARVER DR 375-32-020 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 85 10616 CARVER DR 375-32-021 YETTAW, JACKIE A AND JERRI L 10616 CARVER DR CUPERTINO CA 95014-3607 86 18870 TUGGLE AVE 375-32-024 DELA CRUZ, SHERWIN PETER L 18870 TUGGLE AVE CUPERTINO CA 95014-3626 87 18880 PENDERGAST AVE 375-33-044 HONG, GEORGE AND TSE , CINDY 18880 PENDERGAST AVE CUPERTINO CA 95014-3621 88 10657 MORENGO DR 375-34-013 ORTIZ, ROSA F ET AL 10657 MORENGO DR CUPERTINO CA 95014-3513 89 10670 MORENGO DR 375-34-058 CHANG, SSU-CHIA TRUSTEE & ET AL 10670 MORENGO DR CUPERTINO CA 95014-3514 90 18830 HUNTER WA 375-35-001 THOMPSON, LARRY L AND SHIRLEY 40133 CANYON HEIGHTS DR FREMONT CA 94539-3008 91 19050 MEIGGS LN 375-35-053 KIM, MINKYU AND HEEJUNG 19050 MEIGGS LN CUPERTINO CA 95014-3511 92 19040 MEIGGS LN 375-35-054 ZHOU, JINING AND GAO , LIKE 19040 MEIGGS LN CUPERTINO CA 95014-3511 93 10650 JOHANSEN DR 375-36-008 JUDOPRASETIJO, AGOES H AND 13953 SHADOW OAKS WAY SARATOGA CA 95070-5541 94 10627 CULBERTSON DR 375-36-027 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 95 19141 MEIGGS LN 375-37-001 XU, HU AND WU , LINA 1301 LASSEN AVE MILPITAS CA 95035-6406 96 10720 S TANTAU AVE 375-37-002 QIN, ZUDIAN AND SUN , HAIXIA 10720 S TANTAU AVE CUPERTINO CA 95014-0000 96 records of 104 Santa Clara County Weed Abatement Program Page 4 101
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CITY OF CUPERTINO Exhibit A
97 10524 S TANTAU AVE 375-37-020 LIU, XIONG AND GUO , YAQIONG 10524 S TANTAU AVE CUPERTINO CA 95014-0000 98 10593 JOHANSEN DR 375-37-053 BURTZLAFF, JAMES L PO BOX 464 CUPERTINO CA 95015-0464 99 10605 JOHANSEN DR 375-37-055 YUEN, ALAN K AND CHEUNG , 22277 CRESCENT RD CUPERTINO CA 95014-0000 100 10611 JOHANSEN DR 375-37-056 SHINOHARA, YOSHIKAZU AND 10611 JOHANSEN DR CUPERTINO CA 95014-3508 101 891 S TANTAU AVE 375-38-044 HUANG, ZERY-KUEN AND YU-MEI 891 S TANTAU AVE CUPERTINO CA 95014-4648 102 947 S TANTAU AVE 375-38-051 LIANG, SIDNEY 947 S TANTAU AVE CUPERTINO CA 95014-4601 103 604 MILLER AVE 375-42-016 JAN, SEAWAY AND HUNG , CHIA YING604 MILLER AVE CUPERTINO CA 95014-4640 104 605 PHIL CT 375-42-017 KEDILAYA, SHASHI AND 605 PHIL CT CUPERTINO CA 95014-4654 104 records of 104 Santa Clara County Weed Abatement Program Page 5 102
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CITY OF CUPERTINO Exhibit A
1 10213 MINER PL 316-26-065 CHIANG ALEX H AND ANNE 10213 MINER PL CUPERTINO CA 95014-2201 2 21001 HAZELBROOK DR 326-28-095 JAGANATHAN, RAMESH AND 21001 HAZELBROOK DR CUPERTINO CA 95014-1628 3 10301 BEARDON DR 326-30-042 CHEN, WENHAU HORUS TRUSTEE & 20711 FARGO DR CUPERTINO CA 95014-1903 4 20847 GARDEN GATE DR 326-30-048 PADMANABAN, GOVINDARAJ A 20847 GARDEN GATE DR CUPERTINO CA 95014-1807 5 10467 GLENCOE DR 326-30-106 ZHAI, JLANJUN AND WEI , LI 11566 FALLCREEK SPRING CT CUPERTINO CA 95014-5118 6 10450 GLENCOE DR 326-30-139 WOODWARD, DOUGLAS C TRUSTEE 10450 GLENCOE DR CUPERTINO CA 95014-1816 7 22645 SAN JUAN RD 342-17-067 MULLEN, EVA JO TRUSTEE PO BOX 835 CUPERTINO CA 95015-0835 8 10611 SANTA LUCIA RD 342-17-095 HUNTS, SUSAN E ET AL 10611 SANTA LUCIA RD CUPERTINO CA 95014-3937 9 EL CERRITO RD 342-21-004 ITEM, WERNER TRUSTEE & ET AL 22670 SAN JUAN RD CUPERTINO CA 95014-3933 10 (LAND ONLY) 342-45-001 CHAMBERLAIN, JACK T TRUSTEE 655 SKYWAY UNIT 230 SAN CARLOS CA 94070 11 23025 VOSS AVE 342-50-015 SAMPATH, NANDAKUMAR AND 23025 VOSS AVE CUPERTINO CA 95014-2661 12 VOSS AVE 342-50-019 CHAMBERLAIN, JACK T TRUSTEE 655 SKYWAY 230 SAN CARLOS CA 94070 13 22540 STEVENS BL 342-66-001 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 14 22536 STEVENS BL 342-66-002 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 15 22532 STEVENS BL 342-66-003 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 16 22528 STEVENS BL 342-66-004 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 17 22524 STEVENS BL 342-66-005 ALAN ENTERPRISE LLC 1177 CALIFORNIA ST UNIT SAN FRANCISCO CA 94108 18 21542 REGNART RD 356-23-040 LI, XUESONG AND TU , YITSEN 21542 REGNART RD CUPERTINO CA 95014-4819 19 22028 LINDY LN 356-27-007 THOMAS, TONY G AND MATHEW , 22028 LINDY LN CUPERTINO CA 95014-4811 20 22090 LINDY LN 356-27-020 HANGGI, EVELYN B TRUSTEE 61145 WARD RD BEND OR 97702 21 22032 LINDY LN 356-27-025 DE, KALPAJIT AND MAJUMDER , 22032 LINDY LN CUPERTINO CA 95014-4811 22 22400 JANICE AV 357-01-051 HSU HUI-CHI AND LAI HSIU-CHEN ET 22400 JANICE AVE CUPERTINO CA 95014 23 10164 S FOOTHILL BLV 357-01-091 MCKERNAN, DANIEL S AND 10164 S FOOTHILL BLVD CUPERTINO CA 95014-2602 24 10209 CARMEN RD 357-02-001 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-2707 24 records of 104 Santa Clara County Weed Abatement Program Page 1 103
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CITY OF CUPERTINO Exhibit A
25 10290 MIRA VISTA RD 357-02-024 YEN JOSEPH JENKUN AND LI 10290 MIRA VISTA RD CUPERTINO CA 95014-2705 26 22284 PALM AVE 357-04-032 WATANABE, RYOJI AND LI , LILY C 22284 PALM AVE CUPERTINO CA 95014-2709 27 10234 SCENIC BLV 357-08-052 XIE, WEI ET AL 18255 CLEMSON AVE SARATOGA CA 95070 28 10234 SCENIC BLV 357-08-053 XIE, WEI ET AL 18255 CLEMSON AVE SARATOGA CA 95070 29 10234 SCENIC BLV 357-08-054 XIE, WEI ET AL 18255 CLEMSON AVE SARATOGA CA 95070 30 20950 STEVENS BL 359-07-006 BARTELS PROPERTIES ET AL 865 COTTON ST MENLO PARK CA 94025-5610 31 10476 S STELLING RD 359-13-136 WU, YUN JUNG AND CHIN-YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-1809 32 10468 S STELLING RD 359-13-137 WU, YUN JUNG AND CHIN-YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-1809 33 7540 MCCLELLAN RD 359-19-043 TIWARI, ANOOP KUMAR TRUSTEE & 7540 MCCLELLAN RD CUPERTINO CA 95014-2943 34 20860 MCCLELLAN RD 359-20-030 ALPHAMCCLELLAN LLC 97 BOSTON AVE SAN JOSE CA 95128-1911 35 CRANBERRY DR 362-02-048 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 36 CRANBERRY DR 362-04-058 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 37 RAINBOW DR 362-09-026 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 38 7898 FIESTA LN 362-15-012 KRIMSON COAST HOLDINGS LLC 1509 LAURELWOOD SAN JOSE CA 95138-0000 39 362-16-037 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 40 362-19-033 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 41 362-31-030 ALMASI, AZITA TRUSTEE & ET AL 965 LAUREL GLEN DR PALO ALTO CA 94304-1323 42 S STELLING RD 366-09-028 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 43 STAUFFER LN 366-09-053 UNION PACIFIC CORP 10031 FOOTHILLS BLVD ROSEVILLE CA 95747 44 1258 S STELLING RD 366-11-109 VASAVAKUL, THAVEESINN AND 1258 S STELLING RD CUPERTINO CA 95014-5257 45 21670 RAINBOW CT 366-38-005 CHELLADURAI, JAYAKUMAR AND 21670 RAINBOW CT CUPERTINO CA 95014-4829 46 22365 REGNART RD 366-40-004 KOLLIPARA, RAVINDRANATH AND 22365 REGNART RD CUPERTINO CA 95014-4824 47 22033 REGNART RD 366-46-005 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-4979 48 22045 REGNART RD 366-46-006 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-4979 48 records of 104 Santa Clara County Weed Abatement Program Page 2 104
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CITY OF CUPERTINO Exhibit A
49 19990 S HALL CT 369-04-017 LAMBIE, RICHARD H TRUSTEE 367 S BAYWOOD AVE SAN JOSE CA 95128 50 6611 JOHN DR 369-24-024 HU, PING AND WEI 6611 JOHN DR CUPERTINO CA 95014-4562 51 898 BRENT DR 369-24-025 KUOK, CHUN FREDERICK 898 BRENT DR CUPERTINO CA 95014-4553 52 885 BETLIN AVE 369-27-028 LEE, TSUNG-EN TRUSTEE & ET AL 701 SENECA ST PALO ALTO CA 94301 53 10539 S BLANEY AVE 369-33-001 CHANG, MINGO M AND YOUNG , 10539 S BLANEY AVE CUPERTINO CA 95014-4542 54 10710 10710 S DE 369-37-028 APRICOT VILLAGE LLC 991 W HEDDING ST SAN JOSE CA 95126-1257 55 19361 PHIL LN 375-05-029 LI, YIMIN AND HUANG , YUANYUAN 19361 PHIL LN CUPERTINO CA 95014-3429 56 10067 S TANTAU AVE 375-07-007 WU, HUNGJEN HENRY 10067 S TANTAU AVE CUPERTINO CA 95014-3541 57 19160 COZETTE LN 375-07-022 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-2707 58 10080 S TANTAU AVE 375-07-042 MAHAJAN, HAMENT AND MANJU 10080 S TANTAU AVE CUPERTINO CA 95014-3542 59 10177 JUDY AVE 375-07-056 YANG, YI-NING 10177 JUDY AVE CUPERTINO CA 95014-3522 60 19148 LOREE AVE 375-08-002 LO, SHIHCHE AND WANG , PEICHEN 19148 LOREE AVE CUPERTINO CA 95014-3539 61 10399 S TANTAU AVE 375-08-026 GUY, JOY M TRUSTEE 1174 CANYONWOOD CT APT WALNUT CREEK CA 94595-3629 62 10024 BRET AVE 375-11-047 10024 BRET LLC 1028 POLK AVE SUNNYVALE CA 94086-7440 63 10200 STERN AV 375-12-002 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 64 18904 ARATA WA 375-13-003 WU, BENJAMIN HONG AND 20988 FAIRWOODS CT CUPERTINO CA 95014-4200 65 10365 MORETTI DR 375-14-011 LOK, JAMES S AND JANE F TRUSTEE 3926 KINGRIDGE DR SAN MATEO CA 94403 66 10360 MORETTI DR 375-15-005 BHARDWAJ, AMIT AND MANGAL , 10360 MORETTI DR CUPERTINO CA 95014-3639 67 10464 MORETTI DR 375-16-042 PENTA-LOURDUSAMY, LEEMA J 375 MINUTE ARMS RD UNION NJ 07083-9125 68 18731 BARNHART AVE 375-17-048 XIE, DEPING AND SUN , HUAMIN 18731 BARNHART AVE CUPERTINO CA 95014-3803 69 18755 BARNHART AVE 375-17-051 JOHNSON, ALLEN R 1220 TASMAN DR SPC 513 SUNNYVALE CA 94089 70 10361 JOHNSON AV 375-18-039 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 71 10542 STERLING BL 375-23-032 HSU ALLEN K AND CINDY S TRUSTEE 10229 SCENIC BLVD CUPERTINO CA 95014-2724 72 10460 STERLING BLV 375-23-041 ZHANG, AILI 10460 STERLING BLVD CUPERTINO CA 95014-3832 72 records of 104 Santa Clara County Weed Abatement Program Page 3 105
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COMMENCEMENT REPORT
CITY OF CUPERTINO Exhibit A
73 10308 STERLING BLV 375-24-017 HAO, STEVE MIN AND SUN , QING 6962 BOLLINGER RD SAN JOSE CA 95129-2847 74 18621 RUNO CT 375-25-023 WANG, HENG-YUAN AND LEE , 18621 RUNO CT CUPERTINO CA 95014-3865 75 18730 BARNHART AVE 375-27-001 VASILIEV, OLGA 18730 BARNHART AVE CUPERTINO CA 95014-3804 76 18781 TUGGLE AVE 375-27-025 CAMPBELL, MICHAEL D P O BOX 5345 SAN JOSE CA 95150-5345 77 18760 BARNHART AV 375-27-041 HALL, MARTHA S 18760 BARNHART AVE CUPERTINO CA 95014-3804 78 10589 GASCOIGNE DR 375-28-011 ZHAI, JIANJUN 11566 FALLCREEK SPRING CT CUPERTINO C CA 95014-5118 79 10624 JOHNSON AVE 375-28-026 ANANTH, SHARATH AND BHAT , 10624 JOHNSON AVE CUPERTINO CA 95014-3817 80 10692 GASCOIGNE DR 375-29-020 YU, DONALD AND JEWELEEH 10692 GASCOIGNE DR CUPERTINO CA 95014-3846 81 10750 MINETTE DR 375-31-038 WU, JENNIFER AND LIU , JAMES 10136 ENGLISH OAK WAY CUPERTINO CA 95014-5609 82 10740 MINETTE DR 375-31-039 CHEN, HUNG JUNG AND LI , MEI YI 10740 MINETTE DR CUPERTINO CA 95014-3615 83 10728 CARVER DR 375-32-010 MYOUNG, SOUNG HO AND LEE , EUN 10728 CARVER DR CUPERTINO CA 95014-3609 84 10630 CARVER DR 375-32-020 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 85 10616 CARVER DR 375-32-021 YETTAW, JACKIE A AND JERRI L 10616 CARVER DR CUPERTINO CA 95014-3607 86 18870 TUGGLE AVE 375-32-024 DELA CRUZ, SHERWIN PETER L 18870 TUGGLE AVE CUPERTINO CA 95014-3626 87 18880 PENDERGAST AVE 375-33-044 HONG, GEORGE AND TSE , CINDY 18880 PENDERGAST AVE CUPERTINO CA 95014-3621 88 10657 MORENGO DR 375-34-013 ORTIZ, ROSA F ET AL 10657 MORENGO DR CUPERTINO CA 95014-3513 89 10670 MORENGO DR 375-34-058 CHANG, SSU-CHIA TRUSTEE & ET AL 10670 MORENGO DR CUPERTINO CA 95014-3514 90 18830 HUNTER WA 375-35-001 THOMPSON, LARRY L AND SHIRLEY 40133 CANYON HEIGHTS DR FREMONT CA 94539-3008 91 19050 MEIGGS LN 375-35-053 KIM, MINKYU AND HEEJUNG 19050 MEIGGS LN CUPERTINO CA 95014-3511 92 19040 MEIGGS LN 375-35-054 ZHOU, JINING AND GAO , LIKE 19040 MEIGGS LN CUPERTINO CA 95014-3511 93 10650 JOHANSEN DR 375-36-008 JUDOPRASETIJO, AGOES H AND 13953 SHADOW OAKS WAY SARATOGA CA 95070-5541 94 10627 CULBERTSON DR 375-36-027 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 95 19141 MEIGGS LN 375-37-001 XU, HU AND WU , LINA 1301 LASSEN AVE MILPITAS CA 95035-6406 96 10720 S TANTAU AVE 375-37-002 QIN, ZUDIAN AND SUN , HAIXIA 10720 S TANTAU AVE CUPERTINO CA 95014-0000 96 records of 104 Santa Clara County Weed Abatement Program Page 4 106
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CITY OF CUPERTINO
Agenda Item
24-13524 Agenda Date: 12/3/2024
Agenda #: 7.

Subject: Receive the FY 2023-24 Annual Comprehensive Financial Report (ACFR) Receive the FY 2023-24 Annual Comprehensive Financial Report (ACFR) CITY OF CUPERTINO Page 1 of 1 Printed on 11/26/2024
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CITY COUNCIL STAFF REPORT
Meeting: December 3, 2024
Subject
Receive the FY 2023-24 Annual Comprehensive Financial Report (ACFR) Recommended Action
Receive the FY 2023-24 Annual Comprehensive Financial Report (ACFR) Reasons for Recommendation
Background
The City of Cupertino is in the second year of a five-year contract with The Pun Group (TPG) for conducting its annual financial audits. Building upon the experience from the previous audit cycle, TPG and City staff have implemented enhanced efficiencies to streamline the audit process. These improvements have facilitated a more seamless and timely preparation of the Annual Comprehensive Financial Report (ACFR), ensuring that the City's financial statements are presented accurately and timely.

The annual audit is performed in accordance with the Governmental Accounting Standards Board (GASB) requirements and other applicable accounting principles.

Annual Comprehensive Financial Report
TPG audited the City’s accompanying financial statements as of and for the year ended June 30, 2024. During the audit, procedures were performed to obtain audit evidence regarding amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design appropriate audit procedures. Audit procedures are not designed to express an opinion on the effectiveness of the entity’s internal control.

TPG expressed an unmodified (or clean) opinion, stating “the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then 109
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ended in accordance with accounting principles generally accepted in the United States of America. (see FY 2023-24 ACFR, page 1).

TPG also issued an Independent Auditor’s Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (GAGAS Report). The purpose of this report is solely to describe the scope of the auditor’s testing of internal control over financial reporting and the results of that testing and not to provide an opinion on the effectiveness of the entity’s internal control or compliance. The report disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standard.

The ACFR for the fiscal year ended June 30, 2024, has been prepared in accordance with GASB requirements. The report provides a comprehensive overview of the City's financial position and includes the following sections:

Introductory Section: Offers general information about the City's structure and the nature of its operations.

Financial Section: Contains the independent auditor's report, management's discussion and analysis, basic financial statements, and supplementary information.

Statistical Section: Presents additional financial and demographic information to provide context for understanding the City's financial health.

On November 25, 2024, the City’s Audit Committee reviewed the ACFR and unanimously (3-0-2) voted to accept the financial report.

Next Steps
If the FY 2023-24 ACFR is accepted, the finalized report will be submitted to the Government Finance Officers Association (GFOA) for consideration for the Certificate of Achievement for Excellence in Financial Reporting. Additionally, the report will be provided to stakeholders, including rating agencies and other interested parties, to demonstrate the City’s financial accountability and transparency.

If the ACFR is not accepted, the City may fail to meet critical reporting deadlines, including the GFOA submission deadline of December 31 and the debt covenant reporting deadline of March 31. While infrequent delays in meeting these deadlines may not have material effects, a pattern of late submissions could negatively impact the City’s credit ratings, access to favorable financing terms, and reputation for sound financial management.
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Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.
_____________________________________
Prepared by: Jonathan Orozco, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – FY 2023-24 ACFR
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CITY OF CUPERTINO
Agenda Item
24-13440 Agenda Date: 12/3/2024
Agenda #: 8.

Subject: The Fourth Amendment to the SimpliGov agreement for Business Process Automation Software.

Authorize the City Manager to execute a Fourth Amendment with SimpliGov, for Business Process Automation Software, for a total not-to-exceed amount of $307,000, extending the term through March 30, 2027.

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1 CITY COUNCIL STAFF REPORT
Meeting: December 3, 2024
Subject
The Fourth Amendment to the SimpliGov agreement for Business Process Automation Software.

Recommended Actions
Authorize the City Manager to execute a Fourth Amendment with SimpliGov, for Business Process Automation Software, for a total not‐to‐exceed amount of $307,000, extending the term through March 30, 2027.

Reasons for Recommendation
In January 2022, the Innovation & Technology Department (I&T) identified a need for services to implement business process automation, specifically the ability to remotely route, review, and authorize confidential information using electronic approval.

Through an RFQ process, the SimpliGov platform emerged as it best fir for the City’s needs based on its fully integrated electronic approval functionality, role‐based permission settings to control access to sensitive data, automatic archiving, open API, and alignment with data security best practice standards. The platformʹs no‐code/low‐ code solution empowered Cupertino to rapidly and efficiently construct and deploy dependable digital forms, meeting the escalating demand.

SimpliGov’s original agreement and three subsequent amendments were authorized by the City Manager and executed by the Chief Technology Officer with an expiration date of March 30, 2026, for a total amount of $197,000. The fourth amendment is for one year of subscription costs and three years of support and development cost. As you can see in the second table, development costs were added in subsequent amendments to meet the process digitization needs of the city.

Agreement Execution
Date
Subscription Subscription
Cost (Yearly)
Support &
Developm
ent Cost
Total
Contract
Amount
Contrac
t Term
Expiratio
n Date
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2 Original
Agreement
March 30,
2022 20k*3 $60,000 $30,000 $90,000 3 yrs
30-Mar25
First
Amendment
March 16,
2023 $12,000 $102,000
Remaini
ng 3 yrs
30-Mar25
Second
Amendment
July 20,
2023 $30,000 $132,000
Remaini
ng 3 yrs
30-Mar25
Third
Amendment
February
17, 2024 $20,000 $45,000 $197,000
Extende
d 1 yr
30-Mar26
Proposed 4th
Amendment Pending $20,000 $90,000 $307,000
Extende
d 1 yr
30-Mar27
SUBTOTALS $100,000 $207,000
Given SimpliGovʹs established success, staff proficiency in the system (acquired through extensive training and workflow development), and substantial investment in integration with Laserfiche, SharePoint, Power Apps, and PowerBI, I&T staff strongly recommend maintaining SimpliGov over exploring alternatives. Substituting SimpliGov with in‐house solutions or products from other vendors would significantly escalate costs and time expenditure, presenting a less efficient long‐term solution. This transition would necessitate recreating over 45 automated digital workflows solutions, temporarily relying on static processes during system implementation, training for a new system, and reconstructing operational processes. The associated staff training, workflow disruptions, and time lapses before implementing the new solution would incur a notable cost for the city, impeding momentum and staff efficiency.

Moreover, SimpliGov has surpassed staff expectations of a workflow automation system. Based on the cost, staff time, and the demonstrated effectiveness of the existing SimpliGov platform, staff recommends that the City Council authorize the City Manager to execute an amendment to the existing contract to increase the not‐to‐exceed amount to $307,000. Staff will continue to evaluate the performance and value of the SimpliGov platform to determine if a competitive procurement for business process automation software would be appropriate in the future.

Sustainability Impact
SimpliGov software has reduced the volume of paper used for work management, conserving natural resources, and reducing greenhouse gases generated during the 308
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3 production and disposal of paper. Implementation of paperless office strategies like this one is prioritized in Cupertino’s Climate Action Plan (MSW‐1).

City Work Program (CWP) Item: No

CWP Item Description: NA

Council Goal: NA
Fiscal Impact
The historical base budget for this item has been $32,000. However, due to the consistent increase in development costs exceeding this amount, we are requesting an $18,000 increase to the base budget. This adjustment would allocate $20,000 for annual subscription costs and $30,000 for annual support and development expenses.

California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: Teri Gerhardt, CGCIO, Chief Technology Officer Reviewed by: Chistopher Jensen, City Attorney
Tina Kapoor, Interim Assistant City Manager
Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – Draft Fourth Amendment 22‐042
B – Third Amendment 22‐042
C – Second Amendment 22‐042
D – First Amendment 22‐042
E – Base Agreement 22‐042
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1 FOURTH AMENDMENT TO AGREEMENT 22-042

BETWEEN THE CITY OF CUPERTINO AND
SIMPLIGOV, LLC., FOR WORKFLOW

AUTOMATION SERVICES
This Fourth Amendment to Agreement 22-042 between the City of Cupertino and SIMPLIGOV, LLC., is by and between the CITY OF CUPERTINO, a municipal corporation (hereinafter "City") and SIMPLIGOV, LLC., a Limited Liability Company (“Contractor”) whose address is 1724 10th Street, Suite 115, Sacramento, CA 95811, and is made with reference to the following:

RECITALS:

A. On 3/30/22 Agreement 22-042 (“Agreement”) was entered into by and between City and Contractor for Workflow Automation Services.

B. On 3/16/23 First Amendment to Agreement 22-042 (“Agreement”) was entered into by and between City and Contractor for Workflow Automation Services.

C. On 7/20/23 Second Amendment to Agreement 22-042 (“Agreement”) was entered into by and between City and Contractor for Workflow Automation Services.

D. On 2/16/24 Third Amendment to Agreement 22-042 (“Agreement”) was entered into by and between City and Contractor for Workflow Automation Services.

E. City and Contractor desire to modify the Agreement on the terms and conditions set forth herein.

NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:

TERM

1. The term of this agreement shall commence on the last date signed below (Effective Date”).

The term of this agreement is 5 years, with a term expiring on March 30, 2027, unless the agreement is terminated prior thereto under the provisions of Section 16. The City’s appropriate department head or City Manager may extend the term through a written amendment to this Agreement, provided such extension does not include additional contract funds. Extensions requiring additional contract funds are subject to the City’s purchasing policy.

SCOPE OF SERVICES AND CONDITIONS THEREOF

2. Subject to the terms and conditions set forth in this Agreement, Software Provider shall perform each and every service to the schedule of performance set forth in the SLA4 (collectively “Services”).

ATTACHMENT A
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2 COMPENSATION TO SOFTWARE PROVIDER

3. Software Provider shall be compensated for services performed pursuant to this Agreement in a total amount not to exceed $307,000.00. The payments specified in this section shall be the only payments to be made to Software Provider for services rendered pursuant to this Agreement. Software Provider shall invoice City according to the following schedule of milestones/deliverables:

Milestone/Deliverables Total Amount
FY22 Subscription & Support - March 30, 2022 – March 29, 2023 $30,000 Upon First Amendment – Support $12,000
FY23 Subscription & Support - March 30, 2023 – March 29, 2024 $30,000 Upon Second Amendment –Support $30,000
FY24 Subscription & Support - March 30, 2024 – March 29, 2025 $30,000 Upon Third Amendment – Support $45,000
Upon Fourth Amendment – Support $30,000
FY25 Subscription - March 30, 2025 – March 29, 2026 $20,000 FY25 Support – March 30, 2025 – March 29, 2026 $30,000
FY26 Subscription - March 30, 2026 – March 29, 2027 $20,000 FY26 Support – March 30, 2026 – March 29, 2027 $30,000
NOT-TO-EXCEED $307,000
City shall pay Contractor within thirty (30) days after receipt of Service Provider’s invoice. City shall return to Contractor any payment request determined not to be a proper payment request as soon as practicable, but not later than seven (7) days after receipt, and shall explain in writing the reasons why the payment request is not proper.

Except as expressly modified herein, all other terms and covenants set forth in the Agreement shall remain the same and shall be in full force and effect.

SIGNATURES CONTINUE IN NEXT PAGE
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3 IN WITNESS WHEREOF, the parties hereto have caused this modification of Agreement to be executed.

CITY OF CUPERTINO
By
Title
Date

APPROVED AS TO FORM

City Attorney
ATTEST:

City Clerk
Date

SIMPLIGOV LLC
By
Title
Date

EXPENDITURE DISTRIBUTION
Item Amount
Base Agreement $90,000
First Amendment $12,000
Second Amendment $30,000
Third Amendment $65,000
Fourth Amendment $110,000
Total $307,000
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SimpliGov QuoteBudgetary Quote
Customer Details
Contact Name Marilyn Pavlov
Contact Title Management Analyst
Organization City of Cupertino, CA (CACUP)
Address 10300 Torre Ave Cupertino CA 95014
Phone (408) 777-3238
Email [email protected]
SimpliGov Sales Representative Details Quote Details
Name Deal Desk Quote Number QD-00589A
Title Deal Desk Quote Date 09/06/2024
Seller SimpliGov, LLC Quote Type Direct
Address 1724 10th St., Suite115
Sacramento CA 95811 Quote Expiration 03/29/2027
Phone (415) 569-0753 Customer Ref
Email [email protected] Contract Ref
SKU Description Discounted Price Quantity Extended Price 1 SGELA-S-R
Year 5 - SimpliGov Automation Platform Base Subscription includes unlimited workflows
and analytics bundle 12 month subscription. Includes 20,000 transactions and .25 TBs
of storage.* Hosted in the Azure Government Cloud and
includes 4 environments
(staging, preproduction, training and production). (Term Dates: 03/30/2026 thru 03/30/2027)
$20,000.00 1 $20,000.00
2 IMPLT&M-A Year 3 SimpliGov Implementation Services (Term Dates: 12/03/2024 thru 03/29/2025) $200.00 150 $30,000.00 3 IMPLT&M-A Year 4 SimpliGov Implementation Services (Term Dates: 03/30/2025 thru 03/29/2026) $200.00 150 $30,000.00 4 IMPLT&M-A Year 5 SimpliGov Implementation Services (Term Dates: 03/30/2026 thru 03/29/2027) $200.00 150 $30,000.00 Total Price $110,000.00
Workflow: A workflow consists of a form and a unique business process.

Workflow Initiation (WI): Each WI is tracked with a unique Workflow ID. A Workflow ID is created when a user starts a workflow and is kept consistent throughout the entire process, regardless of the workflow outcome. If a new business process is triggered within an existing workflow (a “child initiation”), the child is considered a unique WI with a unique Workflow ID.

Workflow Transaction (WT): Any action (single or multiple), associated with a workflow process is considered a WT. Actions related to the workflow process include, but are not limited to form submissions, form interactions, reviews, approvals electronic signatures, API calls, workflow stage user interactions, and collaboration interactions.

SimpliSign Workflow Initiation (SSWI): Initiation of a workflow that has SimpliSign features enabled triggers a single SSWI regardless of how many users, stages, signers, signatures, or documents are included.

Exception: Provisioning a simple HTML signature pad in a form, without the coverage of a digital certificate, does not incur an SSWI.

SimpliSign Transaction (SST): Initiation of a SimpliSign Transaction within the SimpliSign eSignature module. A single SimpliSign Transaction is counted regardless of the number of signers, or documents included.

Terms of Use: Services listed on this Order Form are provided under the online terms of service found at https://www.simpligov.com/master-subscription-agreement/ (the "Terms and Conditions")
Payment Terms: Subscription fees shall be invoiced annually in advance on the first day of delivery. Implementation services fees shall be invoiced monthly in arrears against hours delivered.

Technical Support Service Guidelines

1. Liaison. Client will appoint a technical liaison to communicate with SimpliGov with respect to the resolution of technical problems (the “Liaison”), who shall complete reasonable training with SimpliGov to enable the Liaison to train users and correct problems caused by user error, assist users with the resolution of known issues, and obtain sufficient information from user’s to adequately report problems to SimpliGov. Client may change such liaison from time to time at reasonable intervals upon written notice to SimpliGov and completion of applicable training by the successor Liaison. SimpliGov will not be obligated to respond or provide technical support to any person other than the designated liaison.

2. Technical Support Hours and Methods. SimpliGov shall use commercially reasonable efforts to provide email and phone technical support to Client’s Liaison during regular business hours, M-F 9 a.m. to 5 p.m. Pacific Time. Problems may be reported any time, however, SimpliGov will not be obligated to assign work after business hours (9 a.m. to 5 p.m. Pacific Time) to problems that are not classified as Priority 1/ASAP.

3. Holidays. SimpliGov observes the following holidays: New Year’s Day, Martin Luther King Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Eve Day, and Christmas Day.

4. Priority. Upon receiving a call or request, SimpliGov will classify and prioritize the problem according to the following criteria (it being understood that in the event that SimpliGov completes a workaround that relegates the applicable problem to a lower priority level, the service levels applicable to that lower priority level will apply going forward):

Priority Description Response Time Target Resolution Time Priority 1/ - ASAP
The issue renders the mission critical real-time processing features and functionalities of the SimpliGov Automation Platform Services completely unavailable, unresponsive, or inoperable, and there is no workaround. 4 business hours 1 business day
SLA4
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Priority 1
Process cannot complete and there is no workaround, but the condition does not interrupt all functions of the SimpliGov Automation Platform Services.
1 business day 10 business days
Priority 2 Process cannot complete, but there is a workaround that allows Client to use the SimpliGov Automation Platform Services. 2 business days 15 business days Priority 3 This priority addresses “cosmetic” type calls with no financial or processing impact. 5 business days One month

5. Client Responsibilities. During the Subscription Term, Client shall: (i) provide supervision, control and management of the use of the SimpliGov Automation Platform Services; (ii) document and promptly report all errors or malfunctions; and (iii) take all steps reasonably necessary to carry out procedures for the rectification of errors or malfunctions within a reasonable time after such procedures have been received from SimpliGov.

Service Level Agreement

1. Scheduled Downtime. When needed, SimpliGov will schedule downtime for routine maintenance or system upgrades (“Scheduled Downtime”) for the Service.

SimpliGov shall exercise commercially reasonable efforts to schedule Scheduled Downtime outside of peak traffic periods. SimpliGov will use commercially reasonable efforts to notify Client’s designated contact at least one calendar week prior to the occurrence of Scheduled Downtime.

2. Uptime Commitment.

A. The Services will be accessible 98% of the time, 7 days per week, and 24 hours per day (“Uptime Commitment”), as calculated over a calendar month. Uptime Commitment shall not apply to, and SimpliGov will not be responsible for, any downtime which: 1) lasts less than 15 minutes; 2) results from Scheduled Downtime; 3) results from the failure of communication or telephone access service or other outside service or equipment or software not the fault of SimpliGov, including without limitation general network outages; 4) is caused by a third party not under SimpliGov’s control; 5) is a result of causes beyond the reasonable control of SimpliGov; or 6) results from failures of the system or the Client API Kit.

B. If SimpliGov fails to meet its Uptime Commitment in any given month, Client’s sole remedy and SimpliGov’s entire liability will be for SimpliGov to credit Client’s account with “Service Level Credits”, to be applied against Client’s next billing period as follows:

No. of Hours Below Uptime Commitment Service Level Credits 1 hours to 2 hours 1 day prorated monthly Subscription Fees > 2 hours to 24 hours 3 days prorated monthly Subscription Fees C. To receive a Service Level Credit, Client must submit a written request for a Service Level Credit to Client’s designated account manager or the SimpliGov support team. To be eligible, the request must (i) include the dates and times of each incident of downtime experienced by Client in the preceding month; and (ii) be received by SimpliGov within ten business days after the end of the billing cycle in which the downtime occurred.

D. Upon receipt of a Service Level Credit request in compliance with the above requirements, SimpliGov shall have 30 days to review the request and to validate the information provided. If SimpliGov determines in good faith that the Services failed to meet the Uptime Commitment as alleged in such a request, then SimpliGov will apply such Service Level Credits to Client’s immediately succeeding billing period. Client’s failure to comply with the provisions of Section 2.C. above will disqualify it from receiving a Service Level Credit.
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Contract No. ________

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Updated: August 2024
Exhibit B: Insurance Requirements and Proof of Insurance Proof of insurance coverage described below is attached to this Exhibit, with City named as additional insured.

1. MINIMUM SCOPE AND LIMITS OF REQUIRED INSURANCE POLICIES Additional Insureds:

The City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers (“Additional Insureds”) are to be covered as additional insureds on Consultant’s Commercial General Liability and Cyber Liability policies. General Liability coverage can be provided in the form of an endorsement to Consultant’s insurance (at least as broad as ISO Form CG 20 10 (11/ 85) or both CG 20 10 and CG 20 37 forms, if later editions are used).

Primary Coverage:

Coverage afforded to City/Additional Insureds shall be primary insurance. Any insurance or selfinsurance maintained by City, its officers, officials, employees, or volunteers shall be excess of Software Provider’s insurance and shall not contribute to it.

Notice of Cancellation:

Each insurance policy shall state that coverage shall not be canceled or allowed to expire, except with written notice to City 30 days in advance or 10 days in advance if due to non-payment of premiums.

Workers' Compensation:

As required by the State of California, with Statutory Limits and Employer’s Liability Insurance of no less than $1,000,000 per occurrence for bodily injury or disease.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of City for all work performed by Software Provider, its employees, agents, and subconsultants.

General Liability:

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Updated: August 2024
shall be at least as broad as ISO Form CG 20 01 (04/13). c. The limits of insurance required may be satisfied by a combination of primary and umbrella or excess insurance, provided each policy complies with the requirements set forth in this Agreement. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect City as a named insured.

Automobile Liability
ISO CA 00 01 covering any auto (including owned, hired, and non-owned autos) with limits no less than $1,000,000 per accident for bodily injury and property damage.

Cyber Liability:

Insurance, with limits not less than:
$2,000,000 each occurrence
$2,000,000 aggregate - all other
Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Software Provider in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion, and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

If the Software Provider maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Software Provider. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

2. ABSENCE OF INSURANCE COVERAGE.

City may direct Software Provider to immediately cease all activities with respect to this Agreement if it determines that Software Provider fails to carry, in full force and effect, all insurance policies with coverages at or above the limits specified in this Agreement. At the City’s discretion, under conditions of lapse, City may purchase appropriate insurance and charge all costs related to such policy to Software Provider.

3. PROOF OF INSURANCE COVERAGE AND COVERAGE VERIFICATION.

A Certificate of Insurance, on an Accord form, and completed coverage verification shall be provided to City by each of Software Provider's insurance companies as evidence of the stipulated coverages prior to the Commencement Date of this Agreement, and annually thereafter for the term of this Agreement. Insurance shall be placed with insurers admitted in the 316
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Contract No. ________

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State of California and with an AM Best rating of A-VII or higher.

4. SUBCONTRACTORS
Software Provider shall require and verify that all subconsultants maintain insurance that meet the requirements of this Contract, including naming the City as an additional insured on subconsultant’s insurance policies.

5. HIGHER INSURANCE LIMITS
If Software Provider maintains broader coverage and/or higher limits than the minimums shown above, City shall be entitled to coverage for the higher insurance limits maintained by Software Provider.

6. ADEQUACY OF COVERAGE
City reserves the right to modify these insurance requirements/coverage based on the nature of the risk, prior experience, insurer or other special circumstances, with not less than ninety (90) days prior written notice.
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1 THIRD AMENDMENT TO AGREEMENT 22-042

BETWEEN THE CITY OF CUPERTINO AND
SIMPLIGOV, LLC., FOR WORKFLOW AUTOMATION

SERVICES
This Third Amendment to Agreement 22-042 between the City of Cupertino and SIMPLIGOV, LLC., is by and between the CITY OF CUPERTINO, a municipal corporation hereinafter "City") and SIMPLIGOV, LLC., a Limited Liability Company (“ Contractor”) whose address is 1724 10th Street, Suite 115, Sacramento, CA 95811, and is made with reference to the following:

RECITALS:

A. On 3/30/22 Agreement 22-042 (“Agreement”) was entered into by and between City and Contractor for Workflow Automation Services.

B. On 3/16/23 First Amendment to Agreement 22-042 (“ Agreement”) was entered into by and between City and Contractor for Workflow Automation Services.

C. On 7/20/23 Second Amendment to Agreement 22-042 (“Agreement”) was entered into by and between City and Contractor for Workflow Automation Services.

D. City and Contractor desire to modify the Agreement on the terms and conditions set forth herein.

NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows:

TERM

1. The term of this agreement shall commence on the last date signed below ( Effective Date”). The term of this agreement is 4 years, with a term expiring on March 30, 2026, unless the agreement is terminated prior thereto under the provisions of Section 16. The City’ s appropriate department head or City Manager may extend the term through a written amendment to this Agreement, provided such extension does not include additional contract funds. Extensions requiring additional contract funds are subject to the City’s purchasing policy.

SCOPE OF SERVICES AND CONDITIONS THEREOF

2. Subject to the terms and conditions set forth in this Agreement, Software Provider shall perform each and every service to the schedule of performance set forth in the SLA3 (collectively “Services”).

COMPENSATION TO SOFTWARE PROVIDER

3. Software Provider shall be compensated for services performed pursuant to this Agreement in a total amount not to exceed $ 197,000. 00. The payments specified in this section shall be the only payments to be made to Software Provider for services rendered pursuant to this Agreement.

Software Provider shall invoice City according to the following schedule of milestones/deliverables:
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2 Milestone/ Deliverables Total Amount
Upon Contract Execution $ 30,000
Upon First Amendment $ 12,000
March 2023 $ 30,000
Upon Second Amendment $ 30,000
March 2024 $ 30,000
Upon Third Amendment $ 45,000
March 2025 $ 20,000
Total $ 197,000
City shall pay Contractor within thirty (30) days after receipt of Service Provider’ s invoice. City shall return to Contractor any payment request determined not to be a proper payment request as soon as practicable, but not later than seven (7) days after receipt, and shall explain in writing the reasons why the payment request is not proper.

Except as expressly modified herein, all other terms and covenants set forth in the Agreement shall remain the same and shall be in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this modification of Agreement to be executed.

CITY OF CUPERTINO
By
Title
Date

APPROVED AS TO FORM
City Attorney
ATTEST:

City Clerk
Date

SIMPLIGOV LLC
By
Title
Date
Michael Concannon
Managing Partner
Feb 16, 2024
Christopher D. Jensen
CTO
Feb 16, 2024
Feb 16, 2024
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3 EXPENDITURE DISTRIBUTION
Item Amount
Base Agreement $ 90,000
First Amendment $ 12,000
Second Amendment $ 30,000
Third Amendment $ 65,000
Total $ 197,000
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Contact Name
Contact Title
Company
Address Address
Phone
Email
Unit Price Term (Yrs) Quantity Extended Price
1 20,000.00$ 1.00 1 20,000$
2 200.00$ - 200 40,000$
3 5,000.00$ - 1 5,000$
25,000$
40,000$
65,000$
Additional storage is available if needed at $3k/TB
1724 10th Street, Suite 115, Sacramento, CA 95811
Contact Title Manager-Innovation Technology Regional Sales Director Organization City of Cupertino SimpliGov, LLC
Statement of Work
Customer Details SimpliGov Sales Representative Details Contact Name Teri Gerhardt Troy Bare
Phone 408.777.3311 916.712.0793
Email [email protected] [email protected]
SKU Description
Total Implementation Price
Total Year 4 Price

SAPGOVPL
Year 4: SimpliGov Automation Platform Base Subscription includes unlimited workflows and analytics bundle 12 month subscription. Includes 20,000 transactions and .25 TBs of storage.* Hosted in the Azure Government Cloud and includes 4 environments staging, preproduction, training and production).

SAPPROSVC
SimpliGov Platform Success (Per hour) - Provides SimpliGov Automation Platform implementation, training, supervision, program implementation, project development & management, design, configuration, product development support across multi-functional project implementation teams. Work to be directed and approved by customer.

Total Year 4 Subscription Price
FTS-KI 12 month subscription for SIMPLIGOV PLATFORM FORM TRANSLATION SERVICES -

KEY INCLUDED
SLA3
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Technical Support Service Guidelines
Priority
Response
Time
Target
Resolution
Time
Priority 1/ -
ASAP
4 business
hours
1 business
day
Priority 1
1 business
day
10 business
days
Priority 2
2 business
days
15 business
days
Priority 3
5 business
days
One month
Service Level Agreement

1. Liaison. Client will appoint a technical liaison to communicate with SimpliGov with respect to the resolution of technical problems ( the “ Liaison”), who shall complete reasonable training with SimpliGov to enable the Liaison to train users and correct problems caused by user error, assist users with the resolution of known issues, and obtain sufficient information from user’ s to adequately report problems to SimpliGov. Client may change such liaison from time to time at reasonable intervals upon written notice to SimpliGov and completion of applicable training by the successor Liaison. SimpliGov will not be obligated to respond or provide technical support to any person other than the designated liaison.

2. Technical Support Hours and Methods. SimpliGov shall use commercially reasonable efforts to provide email and phone technical support to Client’ s Liaison during regular business hours, M-F 9 a.m. to 5 p.m. Pacific Time. Problems may be reported any time, however, SimpliGov will not be obligated to assign work after business hours ( 9 a.m. to 5 p.m. Pacific Time) to problems that are not classified as Priority 1/ASAP.

3. Holidays. SimpliGov observes the following holidays: New Year’ s Day, Martin Luther King Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Eve Day, and Christmas Day.

4. Priority. Upon receiving a call or request, SimpliGov will classify and prioritize the problem according to the following criteria ( it being understood that in the event that SimpliGov completes a workaround that relegates the applicable problem to a lower priority level, the service levels applicable to that lower priority level will apply going forward):

5. Client Responsibilities. During the Subscription Term, Client shall: ( i) provide supervision, control and management of the use of the SimpliGov Automation Platform Services; ( ii) document and promptly report all errors or malfunctions; and (iii) take all steps reasonably necessary to carry out procedures for the rectification of errors or malfunctions within a reasonable time after such procedures have been received from SimpliGov.

The issue renders the mission critical real-time processing features and functionalities of the SimpliGov Automation Platform Services completely unavailable, unresponsive, or inoperable, and there is no workaround.

Description
Process cannot complete and there is no workaround, but the condition does not interrupt all functions of the SimpliGov Automation Platform Services.

Process cannot complete, but there is a workaround that allows Client to use the SimpliGov Automation Platform Services.

This priority addresses “ cosmetic” type calls with no financial or processing impact.

A. The Services will be accessible 98% of the time, 7 days per week, and 24 hours per day (“ Uptime Commitment”), as calculated over a calendar month. Uptime Commitment shall not apply to, and SimpliGov will not be responsible for, any downtime which: 1) lasts less than 15 minutes; 2) results from Scheduled Downtime; 3) results from the failure of communication or telephone access service or other outside service or equipment or software not the fault of SimpliGov, including without limitation general network outages; 4) is caused by a third party not under SimpliGov’ s control; 5) is a result of causes beyond the reasonable control of SimpliGov; or 6) results from failures of the system or the Client API Kit.

B. If SimpliGov fails to meet its Uptime Commitment in any given month, Client’ s sole remedy and SimpliGov’ s entire liability will be for SimpliGov to credit Client’ s account with “ Service Level Credits”, to be applied against Client’ s next billing period as follows:

C. To receive a Service Level Credit, Client must submit a written request for a Service Level Credit to Client’s designated account manager or the SimpliGov support team. To be eligible, the request must (i) include the dates and times of each incident of downtime experienced by Client in the preceding month; and ( ii) be received by SimpliGov within ten business days after the end of the billing cycle in which the downtime occurred.

D. Upon receipt of a Service Level Credit request in compliance with the above requirements, SimpliGov shall have 30 days to review the request and to validate the information provided. If SimpliGov determines in good faith that the Services failed to meet the Uptime Commitment as alleged in such a request, then SimpliGov will apply such Service Level Credits to Client’ s immediately succeeding billing period. Client’ s failure to comply with the provisions of Section 2.C. above will disqualify it from receiving a Service Level Credit.

1. Scheduled Downtime. When needed, SimpliGov will schedule downtime for routine maintenance or system upgrades (“ Scheduled Downtime”) for the Service. SimpliGov shall exercise commercially reasonable efforts to schedule Scheduled Downtime outside of peak traffic periods. SimpliGov will use commercially reasonable efforts to notify Client’ s designated contact at least one calendar week prior to the occurrence of Scheduled Downtime.

2. Uptime Commitment.
1 hours to 2 hours
2 hours to 24 hours
Service Level Credits
1 day prorated monthly Subscription Fees
3 days prorated monthly Subscription Fees
No. of Hours Below Uptime Commitment
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Contract No.

Exhibit B: Insurance Requirements and Proof 0f Insurance Proof of insurance coverage described below is attached t0 this Exhibit, With City named as additional insured.

1. MINIMUM SCOPE AND LIMITS OF REQUIRED INSURANCE POLICIES Additional Insureds:

The City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers (“ Additional Insureds”) are to be covered as additional insureds on Consultant’ s Commercial General Liability and Cyber Liability policies. General Liability coverage can be provided in the form of an endorsement to Consultant’ s insurance ( at least as broad as ISO Form CG 20 10 ( 1 1/ 85) 0r both CG 20 10 and CG 20 37 forms, iflater editions are used).

Primary Coverage:

Coverage afforded t0 City/ Additional Insureds shall be primary insurance. Any insurance 0r selfinsurance maintained by City, its officers, officials, employees, or volunteers shall be excess 0f Software Provider’ s insurance and shall not contribute to it.

Notice 0f Cancellation:

Each insurance policy shall state that coverage shall not be canceled or allowed to expire, except With written notice t0 City 30 days in advance or 10 days in advance if due t0 non—payment 0f premiums.

Workers' Compensation:

As required by the State 0f California, with Statutory Limits and Employer’ s Liability Insurance ofno less than $ 1, 000, 000 per occurrence for bodily injury 0r disease.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of City for all work performed by Software Provider, its employees, agents, and subconsultants.

General Liability:

For bodily injury, property damage, personal injury liability for premises operations, products and completed operations, contractual liability, and personal and advertising injury with limits no less than $ 2, 000, 000 per occurrence ( ISO Form CG 00 01). If a general aggregate limit applies, either the general aggregate limit shall apply separately t0 this project/ location ( ISO Form CG 25 03 or 25 04) 0r it shall be twice the required occurrence limit. a It shall be a requirement that any available insurance proceeds broader than or in excess of the specifiedminimum insurance coverage requirements and/ or limits shall be made available t0 the Additional Insured and shall be ( i) the minimum coverage/ limits specified in this agreement; 0r ( ii) the broader coverage and maximum limits of coverage of any insurance policy, Whichever is greater.
b. Additional Insured coverage under Software Provider’ s policy shall be " primary and non- contributory," will not seek contribution from City’ s insurance/ self—insurance, and shall be at least as broad as ISO Form CG 20 10 ( 04/ 13). 351
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Contract No.
c The limits 0f insurance required may be satisfiedby a combination 0f primary and umbrella or excess insurance, provided each policy complies with the requirements set forth in this Agreement. Any umbrella or excess insurance shall contain 0r be endorsed t0 contain a provision that such coverage shall also apply 0n a primary basis for the benefit of City before the City’ s own insurance 0r self—insurance shall be called upon t0 protect City as a namedinsured.

Automobile Liability
ISO CA 00 01 covering any auto ( including owned, hired, and non- owned autos) with limits n0 less than $1, 000, 000 per accident for bodily injury and property damage.

Cyber Liability:

Insurance, with limits not less than:
2, 000, 000 each occurrence
2, 000, 000 aggregate - all other
Coverage shall be sufficientlybroad to respond t0 the duties and obligations as is undertaken by Software Provider in this Agreement and shall include, but not be limited t0, claims involving infringement of intellectual property, including but not limited t0 infringement 0f copyright, trademark, trade dress, invasion of privacy Violations, information theft, damage to or destruction of electronic information, release 0f private information, alteration of electronic information, extortion, and network security. The policy shall provide coverage for breach response costs as well as regulatory finesand penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

If the Software Provider maintains broader coverage and/ or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/ or higher limits maintained by the Software Provider. Any available insurance proceeds in excess of the specified minimum limits 0f insurance and coverage shall be available t0 the City.

2. ABSENCE OF INSURANCE COVERAGE.

City may direct Software Provider to immediately cease all activities with respect to this Agreement if it determines that Software Provider fails t0 carry, in full force and effect, all insurance policies with coverages at or above the limits specified in this Agreement. At the City’ s discretion, under conditions of lapse, City may purchase appropriate insurance and charge all costs related to such policy to Software Provider.

3. PROOF OF INSURANCE COVERAGE AND COVERAGE VERIFICATION.

A Certificateof Insurance, 0n an Accord form, and completed coverage verification shall be provided t0 City by each of Software Provider' s insurance companies as evidence 0f the stipulated coverages prior t0 the Commencement Date 0f this Agreement, and annually thereafter for the term 0f this Agreement. A11 0f the insurance companies providing insurance for Software Provider shall be licensed to d0 insurance business in the State of California and shall have, and provide evidence of, a Best Rating Service rate 0f A2VH 0r above. 352
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4. SUBCONTRACTORS
Software Provider shall require and verify that all subconsultants maintain insurance that meet the requirements 0f this Contract, including naming the City as an additional insured 0n subconsultant’ s insurance policies.

5. HIGHER INSURANCE LIMITS
If Software Provider maintains broader coverage and/ or higher limits than the minimums shown above, City shall be entitled t0 coverage for the higher insurance limits maintained by Software Provider.

6. ADEQUACY OF COVERAGE
City reserves the right t0 modify these insurance requirements/ coverage based 0n the nature of the risk, prior experience, insurer 0r other special circumstances, With not less than ninety ( 90) days prior written notice.
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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

Countersigned by
Authorized Representative
Form WC 04 03 06 ( 1) Printed in U.S.A.

Process Date: 04/01/23 Policy Expiration Date: 05/11/24

WAIVER OF OUR RIGHT TO RECOVER FROM

OTHERS ENDORSEMENT - CALIFORNIA
Policy Number: 57 WEC AB5D4X Endorsement Number:

Effective Date: 05/11/23 Effective hour is the same as stated on the Information Page of the policy.

Named Insured and Address: Simpligov, LLC
1724 10TH ST UNIT 115
SACRAMENTO CA 95811
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule.( This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.

The additional premium for this endorsement shall be 2 % of the California workers' compensation premium otherwise due on such remuneration.

SCHEDULE
Person or Organization Job Description
Any person or organization for whom you are required by written contract or agreement to obtain this waiver of rights from us
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02/13/2024
Newfront
777 Mariners Island Blvd.

Suite 250
San Mateo CA 94404
Amy Nguyen
650) 412- 7526 ( 650) 488- 8566
Amy.Nguyen@newfront. com
Simpligov, LLC
1724 10th St Unit 115
Sacramento CA 95811
Sentinel Insurance Company Ltd 11000
Progressive Companies
Rated by Multiple Companies 00914
Lloyd’ s of London
CL2421358333
A Y Y 57SBABO4218 06/25/2023 06/25/2024
2,000, 000
1,000, 000
10,000
2,000, 000
4,000, 000
4,000, 000
B 01856800 02/26/2024 08/26/2024
1,000, 000
A
10,000
57SBABO4218 06/25/2023 06/25/2024
3,000, 000
3,000, 000
C Y Y 57WECAB5D4X 05/11/2023 05/11/2024
1,000, 000
1,000, 000
1,000, 000
D
E&O with Cyber Liability
W23C0F230601 07/06/2023 07/06/2024
Each Claim $ 5,000, 000
Aggregate $ 5,000, 000
Retention $ 15,000
City of Cupertino, its City Council, officers, officials, employees, agents, servants and volunteers are included as additional insured on General Liability policy per the attached form. Waiver of Subrogation applies to General Liability and Workers Compensation policies per the attached forms.

City of Cupertino
10300 Torre Avenue
Cupertino CA 95014- 3202

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER( S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A :

NAIC #
NAME:

CONTACT
A/C, No):

FAX
E-MAIL
ADDRESS:

PRODUCER
A/C, No, Ext):

PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy( ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement( s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER( S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:

Per accident)
Ea accident)
N / A
SUBR
WVD
ADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

PROPERTY DAMAGE
BODILY INJURY ( Per accident)
BODILY INJURY ( Per person)

COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOSAUTOS ONLY

NON-OWNED

SCHEDULEDOWNED

ANY AUTO

AUTOMOBILE LIABILITY
Y / N

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY
OFFICER/ MEMBER EXCLUDED?
Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/ PARTNER/ EXECUTIVE
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTHSTATUTEPER

MM/DD/YYYY) LIMITS(

POLICY EXP

MM/DD/YYYY)

POLICY EFF

INSURANCELTR NUMBERTYPE OF POLICY
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES ( ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB $ EACH OCCURRENCE

AGGREGATE
OCCUR

CLAIMS- MADE
DED RETENTION $

PRODUCTS - COMP/ OP AGG

GENERAL AGGREGATE

PERSONAL & ADV INJURY
MED EXP ( Any one person)

EACH OCCURRENCE

DAMAGE TO RENTED
PREMISES ( Ea occurrence)

COMMERCIAL GENERAL LIABILITY

CLAIMS- MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:

POLICY
PROJECT LOC

CERTIFICATE OF LIABILITY INSURANCE

DATE ( MM/ DD/ YYYY)

CANCELLATION

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
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Form SS 00 08 04 05
2005, The Hartford

BUSINESS LIABILITY COVERAGE FORM
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Form SS 00 08 04 05

QUICK REFERENCE

BUSINESS LIABILITY COVERAGE FORM

READ YOUR POLICY CAREFULLY
BUSINESS LIABILITY COVERAGE FORM Beginning on Page
A. COVERAGES 1
Business Liability 1
Medical Expenses 2
Coverage Extension - Supplementary Payments 2
B. EXCLUSIONS 3
C. WHO IS AN INSURED 10
D. LIABILITY AND MEDICAL EXPENSES
LIMITS OF INSURANCE 14
E. LIABILITY AND MEDICAL EXPENSES GENERAL CONDITIONS 15

1. Bankruptcy 15

2. Duties In The Event Of Occurrence, Offense, Claim Or Suit 15

3. Financial Responsibility Laws 16

4. Legal Action Against Us 16

5. Separation Of Insureds 16

6. Representations 16

7. Other Insurance 16

8. Transfer Of Rights Of Recovery Against Others To Us 17 F. OPTIONAL ADDITIONAL INSURED COVERAGES 18
Additional Insureds 18
G. LIABILITY AND MEDICAL EXPENSES DEFINITIONS 20
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BUSINESS LIABILITY COVERAGE FORM

Page 2 of 24 ends

2) Receives a written or verbal demand or
claim for damages because of the "bodily
injury" or "property damage"; or
3) Becomes aware by any other means that
bodily injury" or " property damage" has
occurred or has begun to occur.
d. Damages because of "bodily injury" include
damages claimed by any person or
organization for care, loss of services or
death resulting at any time from the " bodily
injury".
e. Incidental Medical Malpractice
1)" Bodily injury" arising out of the
rendering of or failure to render
professional health care services as a
physician, dentist, nurse, emergency
medical technician or paramedic shall
be deemed to be caused by an
occurrence", but only if:
a) The physician, dentist, nurse,
emergency medical technician or
paramedic is employed by you to
provide such services; and
b) You are not engaged in the
business or occupation of providing
such services.
2) For the purpose of determining the
limits of insurance for incidental medical
malpractice, any act or omission
together with all related acts or
omissions in the furnishing of these
services to any one person will be
considered one "occurrence".

2. MEDICAL EXPENSES
Insuring Agreement
a. We will pay medical expenses as described
below for " bodily injury" caused by an
accident:
1) On premises you own or rent;
2) On ways next to premises you own or
rent; or
3) Because of your operations;
provided that:
1) The accident takes place in the
coverage territory" and during the
policy period;
2) The expenses are incurred and reported
to us within three years of the date of
the accident; and
3) The injured person submits to
examination, at our expense, by
physicians of our choice as often as we
reasonably require.
b. We will make these payments regardless of
fault. These payments will not exceed the
applicable limit of insurance. We will pay
reasonable expenses for:
1) First aid administered at the time of an
accident;
2) Necessary medical, surgical, x-ray and
dental services, including prosthetic
devices; and
3) Necessary ambulance, hospital,
professional nursing and funeral
services.

3. COVERAGE EXTENSION -

SUPPLEMENTARY PAYMENTS
a. We will pay, with respect to any claim or
suit" we investigate or settle, or any " suit"
against an insured we defend:
1) All expenses we incur.
2) Up to $ 1,000 for the cost of bail bonds
required because of accidents or traffic
law violations arising out of the use of
any vehicle to which Business Liability
Coverage for "bodily injury" applies. We
do not have to furnish these bonds.
3) The cost of appeal bonds or bonds to
release attachments, but only for bond
amounts within the applicable limit of
insurance. We do not have to furnish
these bonds.
4) All reasonable expenses incurred by the
insured at our request to assist us in the
investigation or defense of the claim or
suit", including actual loss of earnings
up to $ 500 a day because of time off
from work.
5) All costs taxed against the insured in
the "suit".
6) Prejudgment interest awarded against
the insured on that part of the judgment
we pay. If we make an offer to pay the
applicable limit of insurance, we will not
pay any prejudgment interest based on
that period of time after the offer.
7) All interest on the full amount of any
judgment that accrues after entry of the
judgment and before we have paid,
offered to pay, or deposited in court the
part of the judgment that is within the
applicable limit of insurance.

Any amounts paid under ( 1) through ( 7)
above will not reduce the limits of insurance.
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BUSINESS LIABILITY COVERAGE FORM
Form SS 00 08 04 05 Page 3 of 24
b. If we defend an insured against a " suit"
and an indemnitee of the insured is also
named as a party to the " suit", we will
defend that indemnitee if all of the
following conditions are met:
1) The " suit" against the indemnitee
seeks damages for which the insured
has assumed the liability of the
indemnitee in a contract or agreement
that is an "insured contract";
2) This insurance applies to such liability
assumed by the insured;
3) The obligation to defend, or the cost of
the defense of, that indemnitee, has
also been assumed by the insured in
the same " insured contract";
4) The allegations in the " suit" and the
information we know about the
occurrence" are such that no conflict
appears to exist between the interests
of the insured and the interest of the
indemnitee;
5) The indemnitee and the insured ask
us to conduct and control the defense
of that indemnitee against such " suit"
and agree that we can assign the
same counsel to defend the insured
and the indemnitee; and
6) The indemnitee:
a) Agrees in writing to:
i) Cooperate with us in the
investigation, settlement or
defense of the "suit";
ii) Immediately send us copies of
any demands, notices,
summonses or legal papers
received in connection with
the "suit";
iii) Notify any other insurer whose
coverage is available to the
indemnitee; and
iv) Cooperate with us with
respect to coordinating other
applicable insurance available
to the indemnitee; and
b) Provides us with written
authorization to:
i) Obtain records and other
information related to the
suit"; and
ii) Conduct and control the
defense of the indemnitee in
such " suit".

So long as the above conditions are met,
attorneys' fees incurred by us in the
defense of that indemnitee, necessary
litigation expenses incurred by us and
necessary litigation expenses incurred
by the indemnitee at our request will be
paid as Supplementary Payments.

Notwithstanding the provisions of
Paragraph 1.b.(b) of Section B.–
Exclusions, such payments will not be
deemed to be damages for " bodily
injury" and " property damage" and will
not reduce the Limits of Insurance.

Our obligation to defend an insured' s
indemnitee and to pay for attorneys' fees
and necessary litigation expenses as
Supplementary Payments ends when:
1) We have used up the applicable limit
of insurance in the payment of
judgments or settlements; or
2) The conditions set forth above, or the
terms of the agreement described in
Paragraph ( 6) above, are no longer met.

B. EXCLUSIONS

1. Applicable To Business Liability Coverage
This insurance does not apply to:
a. Expected Or Intended Injury
1)" Bodily injury" or " property damage"
expected or intended from the
standpoint of the insured. This
exclusion does not apply to " bodily
injury" or " property damage" resulting
from the use of reasonable force to
protect persons or property; or
2)" Personal and advertising injury" arising
out of an offense committed by, at the
direction of or with the consent or
acquiescence of the insured with the
expectation of inflicting " personal and
advertising injury".
b. Contractual Liability
1)" Bodily injury" or "property damage"; or
2)" Personal and advertising injury"
for which the insured is obligated to pay
damages by reason of the assumption of
liability in a contract or agreement.

This exclusion does not apply to liability
for damages because of:
a)" Bodily injury"," property damage" or
personal and advertising injury" that
the insured would have in the
absence of the contract or
agreement; or
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b)" Bodily injury" or "property damage"
assumed in a contract or agreement
that is an " insured contract",
provided the " bodily injury" or
property damage" occurs
subsequent to the execution of the
contract or agreement. Solely for
the purpose of liability assumed in
an " insured contract", reasonable
attorneys' fees and necessary
litigation expenses incurred by or for
a party other than an insured are
deemed to be damages because of
bodily injury" or "property damage"
provided:
i) Liability to such party for, or for
the cost of, that party’s defense
has also been assumed in the
same "insured contract", and
ii) Such attorneys' fees and
litigation expenses are for
defense of that party against a
civil or alternative dispute
resolution proceeding in which
damages to which this
insurance applies are alleged.
c. Liquor Liability
Bodily injury" or " property damage" for
which any insured may be held liable by
reason of:
1) Causing or contributing to the
intoxication of any person;
2) The furnishing of alcoholic beverages to
a person under the legal drinking age or
under the influence of alcohol; or
3) Any statute, ordinance or regulation
relating to the sale, gift, distribution or
use of alcoholic beverages.

This exclusion applies only if you are in the
business of manufacturing, distributing,
selling, serving or furnishing alcoholic
beverages.
d. Workers' Compensation And Similar
Laws
Any obligation of the insured under a
workers' compensation, disability benefits
or unemployment compensation law or
any similar law.
e. Employer’ s Liability
Bodily injury" to:
1) An " employee" of the insured arising
out of and in the course of:
a) Employment by the insured; or
b) Performing duties related to the
conduct of the insured’ s business, or
2) The spouse, child, parent, brother or
sister of that " employee" as a
consequence of (1) above.

This exclusion does not apply to liability
assumed by the insured under an "insured
contract".
f. Pollution
1)" Bodily injury"," property damage" or
personal and advertising injury"
arising out of the actual, alleged or
threatened discharge, dispersal,
seepage, migration, release or escape
of "pollutants":
a) At or from any premises, site or
location which is or was at any
time owned or occupied by, or
rented or loaned to any insured.

However, this subparagraph does
not apply to:
i)" Bodily injury" if sustained within
a building and caused by
smoke, fumes, vapor or soot
produced by or originating from
equipment that is used to heat,
cool or dehumidify the building,
or equipment that is used to
heat water for personal use, by
the building's occupants or their
guests;
ii)" Bodily injury" or " property
damage" for which you may be
held liable, if you are a
contractor and the owner or
lessee of such premises, site or
location has been added to your
policy as an additional insured
with respect to your ongoing
operations performed for that
additional insured at that
premises, site or location and
such premises, site or location
is not and never was owned or
occupied by, or rented or
loaned to, any insured, other
than that additional insured; or
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BUSINESS LIABILITY COVERAGE FORM
Form SS 00 08 04 05 Page 5 of 24
iii)"Bodily injury" or " property
damage" arising out of heat,
smoke or fumes from a
hostile fire";
b) At or from any premises, site or
location which is or was at any
time used by or for any insured or
others for the handling, storage,
disposal, processing or treatment
of waste;
c) Which are or were at any time
transported, handled, stored,
treated, disposed of, or processed
as waste by or for:
i) Any insured; or
ii) Any person or organization for
whom you may be legally
responsible;
d) At or from any premises, site or
location on which any insured or
any contractors or subcontractors
working directly or indirectly on
any insured' s behalf are
performing operations if the
pollutants" are brought on or to
the premises, site or location in
connection with such operations
by such insured, contractor or
subcontractor. However, this
subparagraph does not apply to:
i)" Bodily injury" or " property
damage" arising out of the
escape of fuels, lubricants or
other operating fluids which are
needed to perform the normal
electrical, hydraulic or
mechanical functions
necessary for the operation of
mobile equipment" or its parts,
if such fuels, lubricants or other
operating fluids escape from a
vehicle part designed to hold,
store or receive them. This
exception does not apply if the
bodily injury" or " property
damage" arises out of the
intentional discharge, dispersal
or release of the fuels,
lubricants or other operating
fluids, or if such fuels,
lubricants or other operating
fluids are brought on or to the
premises, site or location with
the intent that they be
discharged, dispersed or
released as part of the
operations being performed
by such insured, contractor or
subcontractor;
ii)" Bodily injury" or " property
damage" sustained within a
building and caused by the
release of gases, fumes or
vapors from materials brought
into that building in connection
with operations being performed
by you or on your behalf by a
contractor or subcontractor; or
iii)"Bodily injury" or " property
damage" arising out of heat,
smoke or fumes from a
hostile fire"; or
e) At or from any premises, site or
location on which any insured or any
contractors or subcontractors
working directly or indirectly on any
insured’ s behalf are performing
operations if the operations are to
test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize,
or in any way respond to, or assess
the effects of," pollutants".
2) Any loss, cost or expense arising out
of any:
a) Request, demand, order or statutory
or regulatory requirement that any
insured or others test for, monitor,
clean up, remove, contain, treat,
detoxify or neutralize, or in any way
respond to, or assess the effects of,
pollutants"; or
b) Claim or suit by or on behalf of a
governmental authority for
damages because of testing for,
monitoring, cleaning up, removing,
containing, treating, detoxifying or
neutralizing, or in any way
responding to, or assessing the
effects of," pollutants".

However, this paragraph does not
apply to liability for damages because
of " property damage" that the insured
would have in the absence of such
request, demand, order or statutory or
regulatory requirement, or such claim
or " suit" by or on behalf of a
governmental authority.
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g. Aircraft, Auto Or Watercraft
Bodily injury" or " property damage" arising
out of the ownership, maintenance, use or
entrustment to others of any aircraft," auto"
or watercraft owned or operated by or rented
or loaned to any insured. Use includes
operation and "loading or unloading".

This exclusion applies even if the claims
against any insured allege negligence or
other wrongdoing in the supervision, hiring,
employment, training or monitoring of others
by that insured, if the " occurrence" which
caused the " bodily injury" or " property
damage" involved the ownership,
maintenance, use or entrustment to others of
any aircraft," auto" or watercraft that is
owned or operated by or rented or loaned to
any insured.

This exclusion does not apply to:
1) A watercraft while ashore on premises
you own or rent;
2) A watercraft you do not own that is:
a) Less than 51 feet long; and
b) Not being used to carry persons
for a charge;
3) Parking an " auto" on, or on the ways
next to, premises you own or rent,
provided the "auto" is not owned by or
rented or loaned to you or the insured;
4) Liability assumed under any " insured
contract" for the ownership,
maintenance or use of aircraft or
watercraft;
5)" Bodily injury" or " property damage"
arising out of the operation of any of
the equipment listed in Paragraph f.(2)
or f.(3) of the definition of " mobile
equipment"; or
6) An aircraft that is not owned by any
insured and is hired, chartered or loaned
with a paid crew. However, this
exception does not apply if the insured
has any other insurance for such "bodily
injury" or " property damage", whether
the other insurance is primary, excess,
contingent or on any other basis.
h. Mobile Equipment
Bodily injury" or " property damage"
arising out of:
1) The transportation of "mobile equipment"
by an " auto" owned or operated by or
rented or loaned to any insured; or
2) The use of " mobile equipment" in, or
while in practice or preparation for, a
prearranged racing, speed or
demolition contest or in any stunting
activity.
i. War
Bodily injury"," property damage" or
personal and advertising injury", however
caused, arising, directly or indirectly, out of:
1) War, including undeclared or civil war;
2) Warlike action by a military force,
including action in hindering or
defending against an actual or
expected attack, by any government,
sovereign or other authority using
military personnel or other agents; or
3) Insurrection, rebellion, revolution,
usurped power, or action taken by
governmental authority in hindering or
defending against any of these.
j. Professional Services
Bodily injury"," property damage" or
personal and advertising injury" arising
out of the rendering of or failure to render
any professional service. This includes
but is not limited to:
1) Legal, accounting or advertising
services;
2) Preparing, approving, or failing to
prepare or approve maps, shop
drawings, opinions, reports, surveys,
field orders, change orders, designs or
drawings and specifications;
3) Supervisory, inspection, architectural
or engineering activities;
4) Medical, surgical, dental, x-ray or
nursing services treatment, advice or
instruction;
5) Any health or therapeutic service
treatment, advice or instruction;
6) Any service, treatment, advice or
instruction for the purpose of
appearance or skin enhancement, hair
removal or replacement or personal
grooming;
7) Optical or hearing aid services
including the prescribing, preparation,
fitting, demonstration or distribution of
ophthalmic lenses and similar
products or hearing aid devices;
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8) Optometry or optometric services
including but not limited to examination
of the eyes and the prescribing,
preparation, fitting,demonstration or
distribution of ophthalmic lenses and
similar products;
9) Any:
a) Body piercing ( not including ear
piercing);
b) Tattooing, including but not limited
to the insertion of pigments into or
under the skin; and
c) Similar services;
10) Services in the practice of pharmacy;
and
11) Computer consulting, design or
programming services, including web
site design.

Paragraphs ( 4) and (5) of this exclusion do
not apply to the Incidental Medical
Malpractice coverage afforded under
Paragraph 1.e. in Section A.- Coverages.
k. Damage To Property
Property damage" to:
1) Property you own, rent or occupy,
including any costs or expenses
incurred by you, or any other person,
organization or entity, for repair,
replacement, enhancement,
restoration or maintenance of such
property for any reason, including
prevention of injury to a person or
damage to another' s property;
2) Premises you sell, give away or
abandon, if the "property damage" arises
out of any part of those premises;
3) Property loaned to you;
4) Personal property in the care, custody
or control of the insured;
5) That particular part of real property on
which you or any contractors or
subcontractors working directly or
indirectly on your behalf are performing
operations, if the " property damage"
arises out of those operations; or
6) That particular part of any property
that must be restored, repaired or
replaced because " your work" was
incorrectly performed on it.

Paragraphs ( 1),( 3) and ( 4) of this
exclusion do not apply to " property
damage"( other than damage by fire) to
premises, including the contents of such
premises, rented to you for a period of 7 or
fewer consecutive days. A separate Limit
of Insurance applies to Damage To
Premises Rented To You as described in
Section D.- Limits Of Insurance.

Paragraph ( 2) of this exclusion does not
apply if the premises are " your work" and
were never occupied, rented or held for
rental by you.

Paragraphs ( 3) and (4) of this exclusion do
not apply to the use of elevators.

Paragraphs ( 3),( 4),( 5) and ( 6) of this
exclusion do not apply to liability assumed
under a sidetrack agreement.

Paragraphs ( 3) and (4) of this exclusion do
not apply to " property damage" to
borrowed equipment while not being used
to perform operations at a job site.

Paragraph ( 6) of this exclusion does not
apply to "property damage" included in the
products- completed operations hazard".
l. Damage To Your Product
Property damage" to " your product"
arising out of it or any part of it.
m. Damage To Your Work
Property damage" to " your work" arising
out of it or any part of it and included in the
products- completed operations hazard".

This exclusion does not apply if the
damaged work or the work out of which
the damage arises was performed on your
behalf by a subcontractor.
n. Damage To Impaired Property Or
Property Not Physically Injured
Property damage" to " impaired property"
or property that has not been physically
injured, arising out of:
1) A defect, deficiency, inadequacy or
dangerous condition in " your product"
or "your work"; or
2) A delay or failure by you or anyone
acting on your behalf to perform a
contract or agreement in accordance
with its terms.

This exclusion does not apply to the loss
of use of other property arising out of
sudden and accidental physical injury to
your product" or " your work" after it has
been put to its intended use.
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o. Recall Of Products, Work Or Impaired
Property
Damages claimed for any loss, cost or
expense incurred by you or others for the
loss of use, withdrawal, recall, inspection,
repair, replacement, adjustment, removal
or disposal of:
1)" Your product";
2)" Your work"; or
3)" Impaired property";
if such product, work or property is
withdrawn or recalled from the market or
from use by any person or organization
because of a known or suspected defect,
deficiency, inadequacy or dangerous
condition in it.
p. Personal And Advertising Injury
Personal and advertising injury":
1) Arising out of oral, written or electronic
publication of material, if done by or at
the direction of the insured with
knowledge of its falsity;
2) Arising out of oral, written or electronic
publication of material whose first
publication took place before the
beginning of the policy period;
3) Arising out of a criminal act committed
by or at the direction of the insured;
4) Arising out of any breach of contract,
except an implied contract to use
another’s " advertising idea" in your
advertisement";
5) Arising out of the failure of goods,
products or services to conform with
any statement of quality or
performance made in your
advertisement";
6) Arising out of the wrong description of
the price of goods, products or services;
7) Arising out of any violation of any
intellectual property rights such as
copyright, patent, trademark, trade
name, trade secret, service mark or
other designation of origin or
authenticity.

However, this exclusion does not
apply to infringement, in your
advertisement", of
a) Copyright;
b) Slogan, unless the slogan is also
a trademark, trade name, service
mark or other designation of origin
or authenticity; or
c) Title of any literary or artistic work;
8) Arising out of an offense committed by
an insured whose business is:
a) Advertising, broadcasting,
publishing or telecasting;
b) Designing or determining content
of web sites for others; or
c) An Internet search, access,
content or service provider.

However, this exclusion does not
apply to Paragraphs a., b. and c.
under the definition of " personal and
advertising injury" in Section G.–
Liability And Medical Expenses
Definitions.

For the purposes of this exclusion,
placing an " advertisement" for or
linking to others on your web site, by
itself, is not considered the business
of advertising, broadcasting,
publishing or telecasting;
9) Arising out of an electronic chat room
or bulletin board the insured hosts,
owns, or over which the insured
exercises control;
10) Arising out of the unauthorized use of
another' s name or product in your e-mail
address, domain name or metatags, or
any other similar tactics to mislead
another' s potential customers;
11) Arising out of the violation of a
person' s right of privacy created by
any state or federal act.

However, this exclusion does not
apply to liability for damages that the
insured would have in the absence of
such state or federal act;
12) Arising out of:
a) An " advertisement" for others on
your web site;
b) Placing a link to a web site of
others on your web site;
c) Content from a web site of others
displayed within a frame or border
on your web site. Content includes
information, code, sounds, text,
graphics or images; or
d) Computer code, software or
programming used to enable:
i) Your web site; or
ii) The presentation or functionality
of an " advertisement" or other
content on your web site;
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13) Arising out of a violation of any antitrust law;
14) Arising out of the fluctuation in price or
value of any stocks, bonds or other
securities; or
15) Arising out of discrimination or
humiliation committed by or at the
direction of any " executive officer",
director, stockholder, partner or
member of the insured.
q. Electronic Data
Damages arising out of the loss of, loss of
use of, damage to, corruption of, inability
to access, or inability to manipulate
electronic data".
r. Employment- Related Practices
Bodily injury" or "personal and advertising
injury" to:
1) A person arising out of any:
a) Refusal to employ that person;
b) Termination of that person' s
employment; or
c) Employment- related practices,
policies, acts or omissions, such as
coercion, demotion, evaluation,
reassignment, discipline,
defamation, harassment, humiliation
or discrimination directed at that
person; or
2) The spouse, child, parent, brother or
sister of that person as a
consequence of " bodily injury" or
personal and advertising injury" to the
person at whom any of the
employment- related practices
described in Paragraphs ( a),( b), or (c)
above is directed.

This exclusion applies:
1) Whether the insured may be liable as
an employer or in any other capacity;
and
2) To any obligation to share damages
with or repay someone else who must
pay damages because of the injury.
s. Asbestos
1)" Bodily injury"," property damage" or
personal and advertising injury"
arising out of the "asbestos hazard".
2) Any damages, judgments, settlements,
loss, costs or expenses that:
a) May be awarded or incurred by
reason of any claim or suit
alleging actual or threatened injury
or damage of any nature or kind to
persons or property which would
not have occurred in whole or in
part but for the "asbestos hazard";
b) Arise out of any request, demand,
order or statutory or regulatory
requirement that any insured or
others test for, monitor, clean up,
remove, encapsulate, contain,
treat, detoxify or neutralize or in
any way respond to or assess the
effects of an "asbestos hazard"; or
c) Arise out of any claim or suit for
damages because of testing for,
monitoring, cleaning up, removing,
encapsulating, containing, treating,
detoxifying or neutralizing or in any
way responding to or assessing the
effects of an "asbestos hazard".
t. Violation Of Statutes That Govern EMails, Fax, Phone Calls Or Other Methods Of Sending Material Or
Information
Bodily injury"," property damage", or
personal and advertising injury" arising
directly or indirectly out of any action or
omission that violates or is alleged to
violate:
1) The Telephone Consumer Protection
Act (TCPA), including any amendment
of or addition to such law;
2) The CAN-SPAM Act of 2003, including
any amendment of or addition to such
law; or
3) Any statute, ordinance or regulation,
other than the TCPA or CAN-SPAM Act
of 2003, that prohibits or limits the
sending, transmitting, communicating or
distribution of material or information.

Damage To Premises Rented To You –
Exception For Damage By Fire, Lightning
or Explosion
Exclusions c. through h. and k. through o. do
not apply to damage by fire, lightning or
explosion to premises rented to you or
temporarily occupied by you with permission of
the owner. A separate Limit of Insurance
applies to this coverage as described in
Section D.- Liability And Medical Expenses
Limits Of Insurance.
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2. Applicable To Medical Expenses Coverage
We will not pay expenses for "bodily injury":
a. Any Insured
To any insured, except " volunteer workers".
b. Hired Person
To a person hired to do work for or on behalf
of any insured or a tenant of any insured.
c. Injury On Normally Occupied Premises
To a person injured on that part of
premises you own or rent that the person
normally occupies.
d. Workers' Compensation And Similar
Laws
To a person, whether or not an
employee" of any insured, if benefits for
the " bodily injury" are payable or must be
provided under a workers' compensation
or disability benefits law or a similar law.
e. Athletics Activities
To a person injured while practicing,
instructing or participating in any physical
exercises or games, sports or athletic
contests.
f. Products- Completed Operations Hazard
Included with the " products- completed
operations hazard".
g. Business Liability Exclusions
Excluded under Business Liability Coverage.

C. WHO IS AN INSURED

1. If you are designated in the Declarations as:
a. An individual, you and your spouse are
insureds, but only with respect to the
conduct of a business of which you are the
sole owner.
b. A partnership or joint venture, you are an
insured. Your members, your partners, and
their spouses are also insureds, but only with
respect to the conduct of your business.
c. A limited liability company, you are an
insured. Your members are also insureds,
but only with respect to the conduct of your
business. Your managers are insureds, but
only with respect to their duties as your
managers.
d. An organization other than a partnership,
joint venture or limited liability company, you
are an insured. Your "executive officers" and
directors are insureds, but only with respect
to their duties as your officers or directors.

Your stockholders are also insureds, but only
with respect to their liability as stockholders.
e. A trust, you are an insured. Your trustees
are also insureds, but only with respect to
their duties as trustees.

2. Each of the following is also an insured:
a. Employees And Volunteer Workers
Your " volunteer workers" only while
performing duties related to the conduct of
your business, or your " employees", other
than either your " executive officers"( if you
are an organization other than a
partnership, joint venture or limited liability
company) or your managers ( if you are a
limited liability company), but only for acts
within the scope of their employment by
you or while performing duties related to
the conduct of your business.

However, none of these " employees" or
volunteer workers" are insureds for:
1)" Bodily injury" or " personal and
advertising injury":
a) To you, to your partners or
members ( if you are a partnership
or joint venture), to your members
if you are a limited liability
company), or to a co-"employee"
while in the course of his or her
employment or performing duties
related to the conduct of your
business, or to your other
volunteer workers" while
performing duties related to the
conduct of your business;
b) To the spouse, child, parent,
brother or sister of that coemployee" or that " volunteer worker" as a consequence of
Paragraph ( 1)(a) above;
c) For which there is any obligation
to share damages with or repay
someone else who must pay
damages because of the injury
described in Paragraphs ( 1)(a) or
b) above; or
d) Arising out of his or her providing
or failing to provide professional
health care services.

If you are not in the business of
providing professional health care
services, Paragraph ( d) does not apply
to any nurse, emergency medical
technician or paramedic employed by
you to provide such services.
2)" Property damage" to property:
a) Owned, occupied or used by,
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b) Rented to, in the care, custody or
control of, or over which physical
control is being exercised for any
purpose by you, any of your
employees"," volunteer workers",
any partner or member ( if you are
a partnership or joint venture), or
any member ( if you are a limited
liability company).
b. Real Estate Manager
Any person ( other than your " employee" or
volunteer worker"), or any organization
while acting as your real estate manager.
c. Temporary Custodians Of Your
Property
Any person or organization having proper
temporary custody of your property if you
die, but only:
1) With respect to liability arising out of the
maintenance or use of that property; and
2) Until your legal representative has
been appointed.
d. Legal Representative If You Die
Your legal representative if you die, but
only with respect to duties as such. That
representative will have all your rights and
duties under this insurance.
e. Unnamed Subsidiary
Any subsidiary and subsidiary thereof, of
yours which is a legally incorporated entity
of which you own a financial interest of
more than 50% of the voting stock on the
effective date of this Coverage Part.

The insurance afforded herein for any
subsidiary not shown in the Declarations
as a named insured does not apply to
injury or damage with respect to which an
insured under this insurance is also an
insured under another policy or would be
an insured under such policy but for its
termination or upon the exhaustion of its
limits of insurance.

3. Newly Acquired Or Formed Organization
Any organization you newly acquire or form,
other than a partnership, joint venture or
limited liability company, and over which you
maintain financial interest of more than 50% of
the voting stock, will qualify as a Named
Insured if there is no other similar insurance
available to that organization. However:
a. Coverage under this provision is afforded
only until the 180th day after you acquire
or form the organization or the end of the
policy period, whichever is earlier; and
b. Coverage under this provision does not
apply to:
1)" Bodily injury" or " property damage"
that occurred; or
2)" Personal and advertising injury"
arising out of an offense committed
before you acquired or formed the
organization.

4. Operator Of Mobile Equipment
With respect to "mobile equipment" registered in
your name under any motor vehicle registration
law, any person is an insured while driving such
equipment along a public highway with your
permission. Any other person or organization
responsible for the conduct of such person is
also an insured, but only with respect to liability
arising out of the operation of the equipment, and
only if no other insurance of any kind is available
to that person or organization for this liability.

However, no person or organization is an insured
with respect to:
a." Bodily injury" to a co-"employee" of the
person driving the equipment; or
b." Property damage" to property owned by,
rented to, in the charge of or occupied by
you or the employer of any person who is
an insured under this provision.

5. Operator of Nonowned Watercraft
With respect to watercraft you do not own that
is less than 51 feet long and is not being used
to carry persons for a charge, any person is an
insured while operating such watercraft with
your permission. Any other person or
organization responsible for the conduct of
such person is also an insured, but only with
respect to liability arising out of the operation
of the watercraft, and only if no other
insurance of any kind is available to that
person or organization for this liability.

However, no person or organization is an
insured with respect to:
a." Bodily injury" to a co-"employee" of the
person operating the watercraft; or
b." Property damage" to property owned by,
rented to, in the charge of or occupied by
you or the employer of any person who is
an insured under this provision.

6. Additional Insureds When Required By
Written Contract, Written Agreement Or
Permit
The person( s) or organization( s) identified in
Paragraphs a. through f. below are additional
insureds when you have agreed, in a written
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contract, written agreement or because of a
permit issued by a state or political
subdivision, that such person or organization
be added as an additional insured on your
policy, provided the injury or damage occurs
subsequent to the execution of the contract or
agreement, or the issuance of the permit.

A person or organization is an additional
insured under this provision only for that
period of time required by the contract,
agreement or permit.

However, no such person or organization is an
additional insured under this provision if such
person or organization is included as an
additional insured by an endorsement issued
by us and made a part of this Coverage Part,
including all persons or organizations added
as additional insureds under the specific
additional insured coverage grants in Section
F.– Optional Additional Insured Coverages.
a. Vendors
Any person(s) or organization( s)( referred to
below as vendor), but only with respect to
bodily injury" or " property damage" arising
out of " your products" which are distributed
or sold in the regular course of the vendor's
business and only if this Coverage Part
provides coverage for " bodily injury" or
property damage" included within the
products- completed operations hazard".
1) The insurance afforded to the vendor
is subject to the following additional
exclusions:

This insurance does not apply to:
a)" Bodily injury" or " property
damage" for which the vendor is
obligated to pay damages by
reason of the assumption of
liability in a contract or agreement.

This exclusion does not apply to
liability for damages that the
vendor would have in the absence
of the contract or agreement;
b) Any express warranty
unauthorized by you;
c) Any physical or chemical change
in the product made intentionally
by the vendor;
d) Repackaging, except when
unpacked solely for the purpose of
inspection, demonstration, testing,
or the substitution of parts under
instructions from the manufacturer,
and then repackaged in the
original container;
e) Any failure to make such
inspections, adjustments, tests or
servicing as the vendor has
agreed to make or normally
undertakes to make in the usual
course of business, in connection
with the distribution or sale of the
products;
f) Demonstration, installation,
servicing or repair operations,
except such operations performed
at the vendor' s premises in
connection with the sale of the
product;
g) Products which, after distribution
or sale by you, have been labeled
or relabeled or used as a
container, part or ingredient of any
other thing or substance by or for
the vendor; or
h)" Bodily injury" or " property
damage" arising out of the sole
negligence of the vendor for its
own acts or omissions or those of
its employees or anyone else
acting on its behalf. However, this
exclusion does not apply to:
i) The exceptions contained in
Subparagraphs ( d) or (f);or
ii) Such inspections, adjustments,
tests or servicing as the vendor
has agreed to make or normally
undertakes to make in the usual
course of business, in
connection with the distribution
or sale of the products.
2) This insurance does not apply to any
insured person or organization from
whom you have acquired such products,
or any ingredient, part or container,
entering into, accompanying or
containing such products.
b. Lessors Of Equipment
1) Any person or organization from
whom you lease equipment; but only
with respect to their liability for "bodily
injury"," property damage" or
personal and advertising injury"
caused, in whole or in part, by your
maintenance, operation or use of
equipment leased to you by such
person or organization.
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2) With respect to the insurance afforded
to these additional insureds, this
insurance does not apply to any
occurrence" which takes place after
you cease to lease that equipment.
c. Lessors Of Land Or Premises
1) Any person or organization from
whom you lease land or premises, but
only with respect to liability arising out
of the ownership, maintenance or use
of that part of the land or premises
leased to you.
2) With respect to the insurance afforded
to these additional insureds, this
insurance does not apply to:
a) Any " occurrence" which takes
place after you cease to lease that
land or be a tenant in that
premises; or
b) Structural alterations, new
construction or demolition
operations performed by or on
behalf of such person or
organization.
d. Architects, Engineers Or Surveyors
1) Any architect, engineer, or surveyor, but
only with respect to liability for " bodily
injury"," property damage" or " personal
and advertising injury" caused, in whole
or in part, by your acts or omissions or
the acts or omissions of those acting on
your behalf:
a) In connection with your premises;
or
b) In the performance of your
ongoing operations performed by
you or on your behalf.
2) With respect to the insurance afforded
to these additional insureds, the
following additional exclusion applies:

This insurance does not apply to
bodily injury"," property damage" or
personal and advertising injury"
arising out of the rendering of or the
failure to render any professional
services by or for you, including:
a) The preparing, approving, or
failure to prepare or approve,
maps, shop drawings, opinions,
reports, surveys, field orders,
change orders, designs or
drawings and specifications; or
b) Supervisory, inspection,
architectural or engineering
activities.
e. Permits Issued By State Or Political
Subdivisions
1) Any state or political subdivision, but
only with respect to operations
performed by you or on your behalf for
which the state or political subdivision
has issued a permit.
2) With respect to the insurance afforded
to these additional insureds, this
insurance does not apply to:
a)" Bodily injury"," property damage"
or " personal and advertising
injury" arising out of operations
performed for the state or
municipality; or
b)" Bodily injury" or "property damage"
included within the " productscompleted operations hazard". f. Any Other Party
1) Any other person or organization who
is not an insured under Paragraphs a.
through e. above, but only with
respect to liability for " bodily injury",
property damage" or " personal and
advertising injury" caused, in whole or
in part, by your acts or omissions or
the acts or omissions of those acting
on your behalf:
a) In the performance of your
ongoing operations;
b) In connection with your premises
owned by or rented to you; or
c) In connection with " your work" and
included within the " productscompleted operations hazard", but only if
i) The written contract or written
agreement requires you to
provide such coverage to
such additional insured; and
ii) This Coverage Part provides
coverage for " bodily injury" or
property damage" included
within the " productscompleted operations hazard".
2) With respect to the insurance afforded
to these additional insureds, this
insurance does not apply to:

Bodily injury"," property damage" or
personal and advertising injury"
arising out of the rendering of, or the
failure to render, any professional
architectural, engineering or surveying
services, including:
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a) The preparing, approving, or
failure to prepare or approve,
maps, shop drawings, opinions,
reports, surveys, field orders,
change orders, designs or
drawings and specifications; or
b) Supervisory, inspection,
architectural or engineering
activities.

The limits of insurance that apply to additional
insureds are described in Section D.– Limits
Of Insurance.

How this insurance applies when other
insurance is available to an additional insured
is described in the Other Insurance Condition
in Section E.– Liability And Medical Expenses
General Conditions.

No person or organization is an insured with
respect to the conduct of any current or past
partnership, joint venture or limited liability
company that is not shown as a Named Insured in
the Declarations.

D. LIABILITY AND MEDICAL EXPENSES

LIMITS OF INSURANCE

1. The Most We Will Pay
The Limits of Insurance shown in the
Declarations and the rules below fix the most
we will pay regardless of the number of:
a. Insureds;
b. Claims made or "suits" brought; or
c. Persons or organizations making claims or
bringing " suits".

2. Aggregate Limits
The most we will pay for:
a. Damages because of " bodily injury" and
property damage" included in the
products- completed operations hazard" is
the Products- Completed Operations
Aggregate Limit shown in the
Declarations.
b. Damages because of all other " bodily
injury"," property damage" or " personal
and advertising injury", including medical
expenses, is the General Aggregate Limit
shown in the Declarations.

This General Aggregate Limit applies
separately to each of your " locations"
owned by or rented to you.

Location" means premises involving the
same or connecting lots, or premises
whose connection is interrupted only by a
street, roadway or right-of-way of a
railroad.

This General Aggregate limit does not
apply to " property damage" to premises
while rented to you or temporarily
occupied by you with permission of the
owner, arising out of fire, lightning or
explosion.

3. Each Occurrence Limit
Subject to 2.a. or 2.b above, whichever
applies, the most we will pay for the sum of all
damages because of all " bodily injury",
property damage" and medical expenses
arising out of any one " occurrence" is the
Liability and Medical Expenses Limit shown in
the Declarations.

The most we will pay for all medical expenses
because of " bodily injury" sustained by any
one person is the Medical Expenses Limit
shown in the Declarations.

4. Personal And Advertising Injury Limit
Subject to 2.b. above, the most we will pay for
the sum of all damages because of all
personal and advertising injury" sustained by
any one person or organization is the Personal
and Advertising Injury Limit shown in the
Declarations.

5. Damage To Premises Rented To You Limit
The Damage To Premises Rented To You
Limit is the most we will pay under Business
Liability Coverage for damages because of
property damage" to any one premis es, while
rented to you, or in the case of damage by fire,
lightning or explosion, while rented to you or
temporarily occupied by you with permission of
the owner.

In the case of damage by fire, lightning or
explosion, the Damage to Premises Rented To
You Limit applies to all damage proximately
caused by the same event, whether such
damage results from fire, lightning or explosion
or any combination of these.

6. How Limits Apply To Additional Insureds
The most we will pay on behalf of a person or
organization who is an additional insured
under this Coverage Part is the lesser of:
a. The limits of insurance specified in a
written contract, written agreement or
permit issued by a state or political
subdivision; or
b. The Limits of Insurance shown in the
Declarations.

Such amount shall be a part of and not in
addition to the Limits of Insurance shown in
the Declarations and described in this Section.
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If more than one limit of insurance under this
policy and any endorsements attached thereto
applies to any claim or "suit", the most we will pay
under this policy and the endorsements is the
single highest limit of liability of all coverages
applicable to such claim or " suit". However, this
paragraph does not apply to the Medical Expenses
limit set forth in Paragraph 3. above.

The Limits of Insurance of this Coverage Part apply
separately to each consecutive annual period and to
any remaining period of less than 12 months, starting
with the beginning of the policy period shown in the
Declarations, unless the policy period is extended
after issuance for an additional period of less than 12 months. In that case, the additional period will be
deemed part of the last preceding period for purposes
of determining the Limits of Insurance.

E. LIABILITY AND MEDICAL EXPENSES

GENERAL CONDITIONS

1. Bankruptcy
Bankruptcy or insolvency of the insured or of
the insured' s estate will not relieve us of our
obligations under this Coverage Part.

2. Duties In The Event Of Occurrence,
Offense, Claim Or Suit
a. Notice Of Occurrence Or Offense
You or any additional insured must see to
it that we are notified as soon as
practicable of an " occurrence" or an
offense which may result in a claim. To
the extent possible, notice should include:
1) How, when and where the "occurrence"
or offense took place;
2) The names and addresses of any
injured persons and witnesses; and
3) The nature and location of any injury
or damage arising out of the
occurrence" or offense.
b. Notice Of Claim
If a claim is made or " suit" is brought
against any insured, you or any additional
insured must:
1) Immediately record the specifics of the
claim or " suit" and the date received;
and
2) Notify us as soon as practicable.

You or any additional insured must see to
it that we receive a written notice of the
claim or "suit" as soon as practicable.
c. Assistance And Cooperation Of The
Insured
You and any other involved insured must:
1) Immediately send us copies of any
demands, notices, summonses or
legal papers received in connection
with the claim or "suit";
2) Authorize us to obtain records and
other information;
3) Cooperate with us in the investigation,
settlement of the claim or defense
against the "suit"; and
4) Assist us, upon our request, in the
enforcement of any right against any
person or organization that may be
liable to the insured because of injury
or damage to which this insurance
may also apply.
d. Obligations At The Insured's Own Cost
No insured will, except at that insured's own
cost, voluntarily make a payment, assume
any obligation, or incur any expense, other
than for first aid, without our consent.
e. Additional Insured' s Other Insurance
If we cover a claim or " suit" under this
Coverage Part that may also be covered
by other insurance available to an
additional insured, such additional insured
must submit such claim or " suit" to the
other insurer for defense and indemnity.

However, this provision does not apply to
the extent that you have agreed in a
written contract, written agreement or
permit that this insurance is primary and
non-contributory with the additional
insured' s own insurance.
f. Knowledge Of An Occurrence, Offense,
Claim Or Suit
Paragraphs a. and b. apply to you or to
any additional insured only when such
occurrence", offense, claim or " suit" is
known to:
1) You or any additional insured that is
an individual;
2) Any partner, if you or an additional
insured is a partnership;
3) Any manager, if you or an additional
insured is a limited liability company;
4) Any " executive officer" or insurance
manager, if you or an additional
insured is a corporation;
5) Any trustee, if you or an additional
insured is a trust; or
6) Any elected or appointed offic ial, if you
or an additional insured is a political
subdivision or public entity.
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Cupertino City CouncilDecember 3, 2024

Cupertino City Council
December 3, 2024