ADMINISTRATIVE SERVICES DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
MANAGEMENT REPORT
February 3, 2026
Subject
Follow‐up on November 17, 2025 Management Report, Filing Requirements, and Regular Meeting Schedule
Recommended Action
Receive the update on responses to questions posed by the Corporation Board on November 17, 2025, and adopt Resolution No. 2026‐1 establishing a new time for regular annual meetings.
Background
At the November 17, 2025, meeting of the Cupertino Public Facilities Corporation, the Board received a Management Report from staff and requested additional follow‐up on several administrative and compliance‐related items. The purpose of the February 3, 2026, special meeting is to provide clarifications on those issues and seek formal action on the annual meeting schedule.
Follow‐Up Items and Staff Responses:
1. IRS Form 8038‐G Filing Requirements
Staff has reviewed IRS guidance and confirmed that Form 8038‐G is filed at the time of debt issuance. As outlined in the ʺWhen to Fileʺ section of the IRS Instructions for Form
8038‐G (10/2021), the form is submitted once the City issues tax‐exempt bonds, such as the 2020 Certificates of Participation (COPs). No additional annual filings of Form 8038‐G are required.
2. Tax‐Exempt Status and Bondholder Impact
Following consultation with subject matter experts and legal counsel, staff confirmed that
the temporary lapse in the Corporation’s tax‐exempt status did not affect the 2020 COPs’ tax‐exempt standing nor the rights or obligations of the bondholders. The integrity of the debt issuance remains intact.
3. Annual Meeting Schedule Update
Per direction from the Board, attached is Resolution No. 2026‐1, which updates the time and date for regular meetings of the Corporation to be held annually each November. This replaces Resolution No. 87‐2 and reflects the Corporationʹs current meeting cadence and reporting needs.
4. Statement of Information
To improve internal controls and align with best practices, staff recommends that the Corporation’s annual Statement of Information be prepared by City staff and signed by either the Finance Manager or Administrative Services Director going forward.
5. Form 990 Filings
Staff has contacted accounting firms to assist with preparation and submission of IRS Form 990 filings. While there is ongoing discussion regarding the specific financial information to include for the fiscal year in which the 2020 COPs were issued, prior‐year returns will be based on annual Financial Transaction Reports submitted to the State Controller’s Office, as these reports provide the most accurate and consistent source of Corporation activity.
6. Ongoing Information Gathering
Staff is continuing to compile additional information in response to board inquiries, including clarification of the Corporation’s CEO and Clerk roles, board fiduciary responsibilities, and options for future debt issuance. This information may be presented
at the upcoming special meeting or included in a future informational report once available.
Next Steps
Staff will continue to work with the City’s legal and tax‐exempt bond counsel, Stradling Yocca Carlson & Rauth LLP, to explore options related to filing exemptions and the Corporation’s ongoing compliance requirements. Any material updates or developments will be presented to the Board at a future meeting or through a written update, as appropriate.
Sustainability Impact
No sustainability impact.
Fiscal Impact
Any additional expenditures needed to come into compliance will be assumed within existing budget appropriations.
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: Jonathan Orozco, Acting Director of Administrative Services Reviewed by: Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
A – Resolution 2026‐1
B – Management Report to the Board (11‐19‐2024)
C ‐ Management Report to the Board (11‐17‐2025)
D – Informational Memo (12‐06‐2023)
E ‐ Informational Memo (04‐08‐2024)
F ‐ Informational Memo (04‐25‐2024)
G – Tax Exempt Reinstatement Letter