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CC 03-03-2026 Searchable Packet.pdf

Cupertino City Council
March 3, 2026

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CC 03-03-2026 Searchable Packet.pdf
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March 3, 2026
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Cupertino City Council
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Text extracted from the city's file for reading and search. Open the original on cupertino.legistar.com. That file is the official record.

Tuesday, March 3, 2026
5 :30 PM

CITY OF CUPERTINO
Televised Special Meeting (5:30) and Televised Regular City Council Meeting (6:45)
10350 Torre Avenue, Council Chamber and via Teleconference; and T
eleconference Location Pursuant to Gov. Code 54953(b)(2): Boca Raton Resort, Hotel Lobby, 501 E Camino Real, Boca Raton, FL 33432 City Council

KITTY MOORE, MAYOR

LIANG CHAO, VICE MAYOR
J.R. FRUEN, COUNCILMEMBER

SHEILA MOHAN, COUNCILMEMBER
R "RAY" WANG, COUNCILMEMBER

IN PERSON AND TELECONFERENCE MEETING
For more information: (408) 777-3200 | www.cupertino.gov AGENDA
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IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION O
PTIONS TO OBSERVE:

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) Watch a live stream online at www.Cupertino.gov/youtube and www.Cupertino.org/webcast
4) Attend in person at a remote Teleconference Location noticed pursuant to Gov. Code 54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda.

OPTIONS TO PARTICIPATE AND COMMENT:

Members of the public wishing to address the City Council may do so in the following ways:
1) Appear in person for Open Session at Cupertino Community Hall.

A. During “Oral Communications”, the public may comment on matters not on the agenda, and for agendized matters, the public may comment during the public comment period for each agendized item.

B. Speakers are requested to complete a Speaker Card. While completion of Speaker Cards is voluntary and not required to attend the meeting or provide comments, it is helpful for the purposes of ensuring that all speakers are called upon.

C. Speakers must wait to be called, then proceed to the lectern/podium and speak into the microphone when recognized by the Mayor.

D. Speakers are limited to three (3) minutes each. However, the Mayor may reduce the speaking time depending on the number of people who wish to speak on an item. A speaker representing a group between 2 and 5 members of the public in attendance may have up to 2 minutes per group member to speak, up to 10 minutes maximum.

E. Please note that due to cyber security concerns, speakers are not allowed to connect any personal devices at the lectern/podium. However, speakers that wish to share a document (e.g. presentations, photographs or other documents) during oral comments may do so in one of the following ways:
a) At the overhead projector at the podium, or
b) E-mail the document to [email protected] by 3:00 p.m. and staff will advance the slides/share the documents during your oral comment.
2) Written Communications as follows:

A. E-mail comments to the City Council for Open Session at

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[email protected] a s follows:
a. E-mail comments must be received by 4:00 p.m. on the day of the meeting in order to be forwarded to the City Council before the meeting.
b. Emailed comments received following agenda publication but prior to, or during, the meeting, will be posted to the City’s website after the meeting. c. These e-mail comments will also be received by each City Councilmember, the City Manager, and the City Clerk’s Office. Comments on non-agenda items sent to any other email address will be included upon the sender's request.

B. Regular mail or hand delivered addressed to the: City Council, City Hall, 10300 Torre Avenue, Cupertino, CA 95014
3) Open Session Teleconference in one of the following ways:

A. Online via Zoom on an electronic device (Audio and Video): Speakers must register in advance by clicking on the link below to access the meeting:
https://cityofcupertino.zoom.us/webinar/register/WN_2vS2KuxbRdKBHwUPA0qDNw a) Registrants will receive a confirmation email containing information about joining the webinar.
b) Speakers will be recognized by the name they use for registration. Once recognized, speakers must click ‘unmute’ when prompted to speak.
c) Please read the following instructions about technical compatibility carefully: One can directly download the teleconference (Zoom) software or connect to the meeting in their internet browser. If a browser is used, make sure the most current and up-to-date browser, such as the following, is used: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+.

Certain functionality may be disabled in older browsers, including Internet Explorer.

B. By Phone (Audio only): No registration is required in advance and speakers may join the meeting as follows:
a) Dial 669-900-6833 and enter WEBINAR ID: 884 0254 3757 b) To “raise hand” to speak: Dial *9; When asked to unmute: Dial *6 c) Speakers will be recognized to speak by the last four digits of their phone number.

C. Via an H.323/SIP room system:

Join from an H.323/SIP room system:

H.323:
144.195.19.161 (US West)
206.247.11.121 (US East)
Meeting ID: 884 0254 3757
SIP: [email protected]
D. Online via the teleconferencing device (Audio and Video) being used to provide access

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to the meeting from a remote Teleconference Location noticed pursuant to Gov. Code 54953(
b)(2), which location, if noticed, would be stated on the cover page of this agenda. a) Speakers are required to notify the City Clerk via email to [email protected] prior to noon on the date of the meeting during which they plan to participate and comment from the remote location noticed to ensure the City Clerk is prepared to accept their comment. b) If the teleconferencing device malfunctions impeding access to the meeting from the remote location, the speaker may alternatively participate via the other options for remote participation provided above.

NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO CITY COUNCIL N
OTICE IS HEREBY GIVEN that a special meeting of the Cupertino City Council is hereby called for Tuesday, March 3, 2026, commencing at 5:30 p.m. in Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, California 95014 and via teleconference; and Teleconference Location Pursuant to Gov. Code 54953(b)(2): Boca Raton Resort, Hotel Lobby, 501 E Camino Real, Boca Raton, FL 33432. Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting."

SPECIAL MEETING
ROLL CALL - 5:30 P M
10350 Torre Avenue and via Teleconference; and Teleconference Location Pursuant to Gov.

Code 54953(b)(2): Boca Raton Resort, Hotel Lobby, 501 E Camino Real, Boca Raton, FL 33432

ACTION CALENDAR

1. Subject: Parkland Ballot Measure - Mapping, Zoning, Legal Review, and Election Considerations (Continued on February 19, 2026).

Recommended Action: Receive the report and provide direction to staff on whether to pursue development of a parkland rezoning ballot measure for consideration at the November 2026 election.

Staff Report (02-19-2026)

STUDY SESSION

2. Subject: Study Session on options to comply with state law related to No Net Loss (SB166) due to the lack of adequate capacity to accommodate the City’s moderate and lower-income Regional Housing Needs Allocation (RHNA).

Recommended Action: Receive staff’s presentation and provide direction on housing site selection strategies to address the lack of adequate capacity to accommodate the City’s moderate and lower-income Regional Housing Needs Allocation (RHNA) as required by state law.

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Staff Report
A – City Council Informational Memo re: No Net Loss dated January 30, 2026

ADJOURNMENT
R

EGULAR MEETING
CALL TO ORDER - 6:45 P M
10350 Torre Avenue and via Teleconference; and Teleconference Location Pursuant to Gov.

Code 54953(b)(2): Boca Raton Resort, Hotel Lobby, 501 E Camino Real, Boca Raton, FL 33432

PLEDGE OF ALLEGIANCE

ROLL CALL

CLOSED SESSION REPORT

CEREMONIAL ITEMS

1. Subject: Recognition of March as American Red Cross Month.

Recommended Action: Present proclamation recognizing March as American Red Cross Month.

A - Proclamation

2. S ubject: Recognition of March as Youth Art Month.

Recommended Action: P resent Proclamation recognizing March as Youth Art Month.

A - Proclamation

POSTPONEMENTS AND ORDERS OF THE DAY

3. Subject: An update on the development of the Active Transportation Plan, including a summary of Phase 2, explanations of plan edits, revised scoring criteria, and next steps. (Continued on February 19, 2026)
Recommended Action: C ontinue this item to a future meeting date.

ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Council on any matter within t
he jurisdiction of the Council and not on the agenda for discussion. Oral Communications shall be limited to 30 minutes. Additional speakers wishing to comment on non-agenda items may be given time to speak at the end of the agenda, after the City Manager's report. 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 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

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respond to statements made or questions posed by speakers. A councilmember may also ask a question f
or 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 4-6)
Items appearing on the Consent Calendar are considered routine City business and may be approved by o
ne 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.

4. S ubject: Approval of February 19, 2026 City Council meeting minutes.

Recommended Action: App rove the February 19, 2026 City Council meeting minutes.

A - Draft Minutes

5. S ubject: Receive the Monthly Treasurer's Report for January 2026.

Recommended Action: R eceive the Monthly Treasurer's Report for January 2026.

Staff Report
A – Report of City-wide Receipts, Disbursements, and Cash Balances January 2026 B – Report of City-wide Fund BalancesNet Position January 2026

6. S ubject: Receive the Monthly Treasurer's Investment Report for January 2026.

Recommended Action: Receive the Monthly Treasurer's Investment Report for January 2026.

Staff Report
A - Chandler Investment Report Jan 2026

PUBLIC HEARINGS
Government Code Section 65103.5 limi ts 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 Govt. Code Section 65103.5 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.

7. Subject: Public hearing on the abatement of public nuisance from weeds or other fire hazards pursuant to provisions of Cupertino Municipal Code Chapter 9.08 and Resolution No. 25-101.

Recommended Action: Conduct a public hearing for impacted property owners to contest the matter of proposed abatement and adopt the Resolution No. 26-023 ordering abatement of public nuisance from weeds or other fire hazards pursuant to provisions of Cupertino Municipal Code Chapter 9.08 and Resolution No. 25-101.

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Staff Report
A - Draft Resolution and Exhibit A
B - 2026 Cupertino Commencement Report (Exhibit A)
C – County Letter to Property Owners to Abate Weeds
D – County Hearing Notice to Destroy Weeds and Program Fees E – Minimum Fire Safety Standards Program Brochure
F – Return Reply Form (RRF) Sample
G - City Letter to Property Owners
H - Approved Resolution No. 25-101

8. Subject: Conduct a Noticed Public Hearing to Consider Adopting a Resolution Vacating a Portion of Public Right-of-Way Located Along the Westerly boundary of Mary Avenue (APN 326-27-053).

Recommended Action: 1. F ind the project exempt from the California Environmental Quality Act (CEQA).

2. Adopt Resolution No. 26-024 approving the vacation of a portion of public right-of-way located along the westerly boundary of Mary Ave (APN 326-27-053).

Staff Report
A - Map of Parcel To Be Vacated
B - Draft Resolution

ACTION CALENDAR

9. Subject: Consider Adopting a Resolution Declaring the Mary Avenue property (APN 326-27-053) Exempt Surplus Land under the California Surplus Land Act.

Recommended Action: 1. F ind the project exempt from the California Environmental Quality Act (CEQA).

2. Adopt Resolution No. 26-025 declaring the Mary Avenue property (APN 326-37- 053) to be exempt surplus land pursuant to the provision of the Surplus Land Act codified at California Government Code subsection 54221(f)(1)(F)(i).

Staff Report
A - Map of Parcel 1
B - Draft Resolution

10. Subject: Acceptance of City Manager’s Mid-Year Financial Report for Fiscal Year 2025-26; Approval of Budget Modification increasing appropriations by $663,616 and revenues by $149,578.

Recommended Action: 1. A ccept the City Manager’s Mid-Year Financial Report for Fiscal Year 2025-26.

2. Adopt Resolution No. 26-026 approving Budget Modification No. 2526-433, increasing appropriations by $663,616 and revenues by $149,578.

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Staff Report
A - FY 2025-26 Mid-Year Financial Report
B – Draft Resolution – Budget Appropriations
C – Description of Carryovers and Adjustments as of December 31, 2025 D – Description of Budget Transfers as of December 31, 2025 E – FY 2025-26 Mid-Year Recommended Adjustments
F – Mid-Year Performance Measures
G – FY 2025-26 Mid-Year Special Projects Update as of December 31, 2025 H - FY 2025-26 Competitive and Non-Competitive Citywide Grants Tracking I – Capital Improvement Program Project Status
J - Draft Resolution – Unrepresented Agreement Update
K – Unrepresented Employees’ Compensation Program (Clean) L – Unrepresented Employees’ Compensation Program (Redline)

11. S ubject: Fiscal Year 2026-2027 Capital Improvement Programs and Five-year Plan.

Recommended Action: Receive presentation and approve the Capital Improvement Programs Project Prioritization process and the Fiscal Year 2026-2027 Capital Improvement Programs and Five-Year Plan proposal.

Staff Report
A - CIP projects Prioritization Process
B - FY26-27 CIP projects Prioritization Matrix
C - FY 26-27 CIP New Project Narratives
D - Mid-Year CIP status report
E - Master Plans Project Lists

ITEMS REMOVED FROM THE CONSENT CALENDAR
C

ITY MANAGER REPORT

12. Subject: City Manager Report
A - City Manager's Report

ORAL COMMUNICATIONS - CONTINUED
C

OUNCILMEMBER REPORTS

13. Subject: Councilmember Reports
A - Councilmember Report, Fruen
B - Councilmember Report, Mohan
C - Councilmember Report, Moore

FUTURE AGENDA ITEMS
The Upcoming Draft Agenda Items Report is a tentative council meeting agenda calendar that lists upc
oming City Council meeting dates and tentative agenda items, all of which are subject to change.

14. S ubject: Upcoming Draft Agenda Items Report

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A - Upcoming Draft Agenda Items

ADJOURNMENT
Lobbyist Registration and Reporting Requirements: Individuals who influence or attempt to influence l
egislative 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 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

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publicly available on the City website.

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CITY OF CUPERTINO
Agenda Item
26-14890 Agenda Date: 3/3/2026
Agenda #: 1.

Subject: Parkland Ballot Measure - Mapping, Zoning, Legal Review, and Election Considerations (Continued on February 19, 2026).

Receive the report and provide direction to staff on whether to pursue development of a parkland rezoning ballot measure for consideration at the November 2026 election.

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ADMINISTRATIVE SERVICES DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220 • FAX: (408) 777-3109
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Date: February 19, 2026
Subject
Parkland Ballot Measure – Mapping, Zoning, Legal Review, and Election Considerations Recommended Action
Receive the report and provide direction to staff on whether to pursue development of a parkland rezoning ballot measure for consideration at the November 2026 election.

Background
On January 13, 2026, the City Council conducted a study session regarding a potential November 2026 ballot measure related to parkland protections and rezoning considerations. At that meeting, Council reviewed examples from other jurisdictions, including the City of Milpitas’ Measure K (2016), which requires a two-thirds voter approval to redesignate or develop land zoned for park and open space purposes.

Following discussion, Council requested additional information before determining whether to proceed with placing a measure on the November 2026 ballot. Specifically, Council directed staff to:
- Produce a comprehensive map of City parkland, recreation areas, and open space, - including current zoning designations;
- Identify any parcels with zoning inconsistencies or potential cleanup needs; - Review applicable state law protections governing abandonment or redesignation of parkland; and
- Provide information regarding election logistics, timing, and associated fiscal impacts.

This memorandum responds to Council’s request and outlines the legal framework, logistical requirements, and estimated fiscal implications associated with pursuing a parkland ballot measure.

Mapping and Zoning Analysis
A. Comprehensive Parkland and Open Space Mapping
The city currently has an up-to-date map on the website reflecting the zoning designation for each property, including city parks and open space. The map can be found at: Zoning Code and 12 CC 03-03-2026 Searchable Packet
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Planning Maps Cupertino CA. Further, the Recreation, Parks and Community Services chapter of the City’s General Plan: Community Vision 2015-2040 provides Goals, Policies and Strategies for park maintenance and development, as well as figures that map existing open space, park areas, trail linkages, and park access.

B. Zoning Consistency and Cleanup Assessment
A comprehensive review of the current sites zoned for Open Space (OS) or Public Park (PR) could be conducted to determine any conflict between site use and zoning designation , and any other areas that could be considered parkland. Currently, any property zoned OS or PR is being utilized as open space or park. Some sites may be currently utilized as open space but are zoned as Public Buildings (BA). The City could evaluate public school sites zoned BA and private recreational facilities zoned FP-o and Agricultural Residential.

C. Service Center Zoning and Land Use Review
The city’s service center site at 10555 Mary Avenue is zoned BA (Public Building) and a General Plan Land Use Designation of Public Facilities. The BA designation is for properties with public buildings on the property. No anticipated conflict with use and zoning.

Legal and Ballot Language Evaluation
A. Review of Existing State Law Protections
State law currently provides certain protective hurdles that must be met before a city may dispose of municipal parkland. These hurdles limit a City’s ability to easily abandon formally designated park land or land improved and used for public park purpose s demonstrating a city’s intent to dedicate the land as park land in the future. (See Government Code Section 38440, et seq.) Under these Government Code provisions, to abandon park land or land improved and used as park land, a city must adopt a resolution declaring its intent to do so. Then it must hold a noticed hearing regarding the proposed abandonment, after providing physical posted notice in the park area. Thereafter, members of the public may file written protests to the abandonment. Any written protest is automatically sustained, unless the city council overrules the protest by a two - thirds vote in favor of abandoning the park land. If the city council does so vote, a special election must be held to submit the question to the full electorate. A simple majority vote of the electorate is required to abandon the park land. After such majority vote, the city council is required by statute to adopt an ordinance abandoning the park land, which then allows the city to sell or otherwise dispose of the land in the same manner as any other surplus city land.

One exception to the above process applies when a city desires to trade a small portion of a park for a parcel of private land contiguous to an existing park so long as the land is of equal or greater value than the portion the city will trade. (Govt. Code Section 38441.) Under these circumstances, no public protest is required. The city council may simply vote in favor of the trade.

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B. Scope of Potential Ballot Measure
Local cities have passed ballot measures to heighten these requirements, making it more difficult for their city councils to abandon public park land. For example, the electorate of the City of Milpitas passed Measure K in 2016 with 84.5% of the vote. The Measure focused on preventing the development of residential, commercial or industrial buildings and preventing the re-zoning of land designated as “Parks and Open Space” in the City’s General Plan. Measure K requires proponents of such a development or rezoning to bring a ballot measure to the voters and obtain a two-thirds vote in favor of the change at a general election. This is a much higher standard than the simple majority vote of the electorate under current state law.

The City of Santa Clara, during the same general election in 2016, also offered a ballot measure to its electorate, Measure R, to protect the parkland within their City. Santa Clara voters passed Measure R with 89.6% of the vote. Santa Clara is a Charter City whose Charter provided minimal protections to park land pertaining mainly to notice and bidding procedures.

Both Milpitas and Santa Clara now require a two -thirds vote of the electorate to permit the transition of parkland within their city to non-park uses. Moreover, neither process requires an initial public protest to an already formulated City Council action , which is also a requirement under current state law.

Since the City of Cupertino is a General Law City, it would make sense to consider a measure similar to the Milpitas ballot measure, although an analysis of the inventory of City land included or designated as parkland or open space in the City’s General Plan should be completed to ensure the ballot measure addresses the specific land the City Council would be interested in protecting by this effort.

Election Logistics
To qualify a measure for the November 2026 General Municipal Election, the City must adhere to statutory deadlines for ballot language adoption and submission to the County of Santa Clara Registrar of Voters. These deadlines generally require Council action to place the measure on the ballot no later than early August 2026.

In advance of that deadline, sufficient time must be allocated for public outreach, stakeholder engagement, polling (if desired), legal drafting, and refinement of ballot language. Based on preliminary conversations with multiple consultants experienced in municipal ballot measures, there remains adequate time to conduct polling, public engagement, and develop compliant ballot language for placement on the November 2026 ballot, provided direction is given in early 2026.

If Council ultimately directs staff to proceed, future actions would include adoption of a resolution placing the measure on the ballot, approval of ballot language and impartial analysis procedures, and coordination with the County Registrar.

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Next Steps
Staff will return to City Council in February 2026 to formally present the information included in this memorandum and seek direction on whether to pursue placement of a parkland ballot measure on the November 2026 ballot.

If Council elects to proceed, staff will return with:
- A recommended scope of work for consultant services;
- A proposed budget appropriation; and
- A detailed work plan and timeline outlining polling, outreach, ballot language development, and required Council actions.

If Council determines not to pursue a measure at this time, no further action will be taken.

Include sustainability impact if necessary. If no impact, state “No sustainability impact.” Fiscal Impact
If Council directs staff to proceed with development of a ballot measure, the City should anticipate the following approximate costs:
- Consultant services for polling, public outreach, legal review, ballot language development, and strategic advisory services: approximately $150,000 to $200,000 based on initial discussions with multiple firms; and
- Estimated County costs to place the measure on the November 2026 ballot: approximately $150,000, based on historical costs.

These estimates are preliminary and would be refined prior to returning to Council with a consultant agreement or appropriation request.

City Work Program (CWP) Item/Description
Protections for Parkland/Consider establishing protections for parkland, similar to those adopted by the cities of Sunnyvale and Milpitas
Council Goal:

Quality of Life
California Environmental Quality Act
No California Environmental Quality Act impact.
_____________________________________
Prepared by: Jonathan Orozco, Acting Director of Administrative Services and City Treasurer Reviewed by: Benjamin Fu, Director of Community Development Chad Mosley, Director of Public Works
Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

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CITY OF CUPERTINO
Agenda Item
26-14843 Agenda Date: 3/3/2026
Agenda #: 2.

Subject: Study Session on options to comply with state law related to No Net Loss (SB166) due to the lack of adequate capacity to accommodate the City’s moderate and lower-income Regional Housing Needs Allocation (RHNA).

Receive staff’s presentation and provide direction on housing site selection strategies to address the lack of adequate capacity to accommodate the City’s moderate and lower-income Regional Housing Needs Allocation (RHNA) as required by state law.

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COMMUNITY DEVELOPMENT DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3308
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Date: March 3, 2026
Subject
Study Session on options to comply with state law related to No Net Loss (SB166) due to the lack of adequate capacity to accommodate the City’s moderate and lower-income Regional Housing Needs Allocation (RHNA)
Recommended Action
Receive staff’s presentation and provide direction on housing site selection strategies to address the lack of adequate capacity to accommodate the City’s moderate and lower-income Regional Housing Needs Allocation (RHNA) as required by state law.

Background
Due to the City’s approval of several residential developments on Housing Element Priority Housing Sites at both lower densities and with proportionally lower levels of low- and moderate- income units than anticipated in the Housing Element, the City has been unable to make the No Net Loss findings required by State law since mid-December 2025. The recent modification for the Vallco Town Center/Rise Development, which was a significant pipeline project in the Housing Element, exacerbated the No Net Loss situation further by greatly reducing the number of low - income units included in the project. Under State law, the City has 180 days from the date (December 16, 2025) that it was initially unable t o make the No Net Loss findings to amend its Housing Element and bring it into compliance as it relates to SB166 ( No Net loss law). An informational memo was provided to the City Council in January 2026 as background (see Attachment A) on this issue.

In short, No Net Loss requires that when a city approves a development on a parcel identified in its Housing Element sites inventory with fewer units, or a different mix of affordability levels, than shown in its Housing Element, the city must either:

1. Make findings that the Housing Element’s remaining sites have sufficient capacity to accommodate the remaining unmet RHNA by each income level, or

2. Identify additional sites to again have sufficient Priority Housing Sites to accommodate the remaining unmet RHNA for each income category by

3. Upzoning existing Priority Housing Sites to accommodate additional residential capacity, so long as that upzoning can be realistically developed.
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Options 2 and 3 require the Housing Element of the General Plan to be amended and, pursuant to Government Code section 65585(b), be submitted to the California Housing and Community Development Department (HCD) for its review in order to obtain certification regarding substantial compliance with State Housing Element law, similar to the process followed when the City completed its Housing Element update in 2024.

The table below quantifies the remaining unmet need for the 6 th Cycle Housing Element 2023 - 2031 RHNA, by income level, and the remaining capacity across all Priority Housing Sites by comparing the projected number of units to the proposed number of units for the projects that the City has approved so far. The third row from the bottom of the table shows the current unit deficits in the lower- and- moderate income categories.

Income Category
Lower Income
(30-80% AMI)
Moderate
(80-120% AMI)
Above Mod.
(>120% AMI)
6th Cycle RHNA Requirement 1,880 755 1,953
Units Projected – all Sites 2,037 847 2,997
Projected Surplus – all Sites 157 92 1,044
SummerHill I
(Fontana's, etc.)
Projected (50-65 du/ac) 59 24 62
Actual (20 du/ac) 0 12 47
Change -59 -12 -15
Toll Brothers
(United Furniture)
Projected (65-80 du/ac) 0 93 70
Actual (20 du/ac) 0 11 44
Change 0 -82 -26
Dividend Homes I
(Partial) (20111
Stevens Creek Blvd)
Projected (50-65 du/ac) 45 18 47
Actual (~20 du/ac) 0 6 30
Change -45 -12 -17
Mary Ave Villas
(Charities Housing)
Projected (50-65 du/ac) 40 0 0
Proposed (~50 du/ac) 40 0 0
Change 0 0 0
Vallco Town
Center/Rise
(Pipeline project)
Projected – Phase 1 581 0 1,321
Proposed – Phase 1 232 0 1,137
Change -349 0 -184
SummerHill II
(Evulich Ct)
Projected (20-35 du/ac) 31 18 35
Proposed (~20 du/ac) 0 10 41
Change -31 -8 +6
Unmet 6th Cycle RHNA 1,608 716 654
Remaining Total Units Projected 1,281 694 1,462
Total Remaining Surplus/Deficit -327 -22 808
Building Permits issued through 2025 82 61 225
* Includes Very Low- and Low-Income
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Income Category
Lower Income
(30-80% AMI)
Moderate
(80-120% AMI)
Above Mod.
(>120% AMI)
** Due to the elimination of office s.f. on the west side of the development, the market rate units on the west side are larger in size and spread across a larger footprint. As a result, the number of units in Phase 1 are reduced

While the City has a high unmet RHNA number, it can get credit for building permits issued (Building permits issued through the end of 2025 are indicated in the table above) and for projects that the City entitled on sites that are not Priority Housing Sites (pipeline projects).

Since late 2025, staff has been considering strategies to address the No Net Loss issue and refining a scope of work and budget for this effort. As of March 1, 2026, the City will have a deficit in both the lower and moderate income RHNA levels. As a result, staff recommends that the City Council consider the following options being presented to update the Priority Housing Sites Inventory and provide direction to staff.

Reasons for Recommendation and Options
Policy Considerations
One factor in the City’s No Net loss shortfall in affordable units is that the City does not have minimum residential density requirements for the development of sites that are not Priority Housing Sites. The lack of a minimum required density acts as an incentive to develop at a density that is most lucrative for certain types of projects, that currently being townhomes at a density of around 20 units/acres. Such owner-occupied developments are not required by the City’s Below Market Rate (BMR) housing program to provide lower income level units, only moderate income level units are required, and they do not provide a meaningful number of total units to help the City attain its RHNA targets. For example, projects have proposed densities as low as 17 du/ac in areas along the City’s major transportation corridors with great access to amenities (Stevens Creek Office Center/Harvest Properties), where devel opment of a maximum of 25 du/ac is allowed.

In addition to not being productive in the lower income levels, continued development at 20 du/ac would require the identification of many more sites for residential development .

Affordable housing developers are not attracted to this density and the cost of land increases significantly, since such densities are prime for market rate developers. On the other end of the spectrum, Hanover is proposing 363 units on a 2.67 acre site (~136 du/ac) (19260 and 19300 Stevens Creek Blvd). Due to the size of the units and potential future rents at this development, the City may be able to claim lower income level categorization for some of these units , despite these not being deed restricted affordable housing. The City could consider the establishment of minimum densities for sites along the commercial corridors and higher maximum densities for some sites to allow such development.
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Another factor in the No Net Loss shortfall in affordable units is the City’s RHNA calling for

57.5% of the 6th Cycle Housing Element units to be affordable to Very Low, Low and Moderate income households, while the City’s below market -rate (BMR) housing requirements are only 15% Low income units (this includes Very Low income units) for new rental developments, such as apartments, and 20% Moderate income units (this includes Median and Moderate income units) for new owner-occupied developments, such as townhomes and condominiums. This disparity in affordability levels between the RHNA and the City’s BMR requirements inevitably results in shortfalls as sites develop, unless projects on Priority Housing sites develop largely as affordable housing projects or provide BMR units at percentages greater than required by the City. Only two projects have been proposed as largely affordable housing developments – Mary Ave Villas (on property owned by the City) and Wolfe Road Teacher Housing (on property controlled by the County). In addition, it should be noted that cities must offer an in-lieu of BMR unit fee to allow developers the option to “fee out” of BMR program requirements. This further limits the production of housing units at lower income levels. However, the City should have an adequate fee to off-set the loss of housing unit production, which it currently does not.

Options for additional Priority Housing Sites
City staff has, in the past few months, been contacted by several property owners to add sites to the Priority Housing Sites Inventory. These include:
• Kimco Property (Cupertino Village) for some portions of their site (e.g. existing hotel site) at much higher densities,
• AlphaX – four sites on the northeast corner of the intersection of N. Foothill Blvd and Stevens Creek Blvd, including three parcels which will allow residential development at an existing density of 15 units per acre and one parcel with a land use density and zoning that allows single family (R1) uses.

In addition to requests from property owners, the City could consider upzoning additional non- residential sites along the major transit corridors of Stevens Creek and De Anza Blvd at higher densities for inclusion in the Priority Housing Sites Inventory. State law (AB2011) already allows residential development at certain minimum densities along defined commercial corridors.

However, since there are labor requirements associated with the use of this law, developers do not readily utilize these provisions. T he City could adopt a local version of these regulations without the labor requirements to allow the development of some of the sites along the major transportation corridors , with potential exclusions for sites that the City wishes to retain as commercial, to allow higher density residential development. While the commercial sites excluded from the local program could develop under provisions of state law, they would have to meet the higher labor standards required by the state. Identifying sites along Stevens Creek/De Anza would address issues the City has faced with locating Priority Housing Sites within residential neighborhoods (e.g. Evulich Ct., McClellan Road etc.).

Options for upzoning existing Priority Housing Sites
Some property owners have been interested in upzoning their existing Priority Housing Sites.

These include:
• Marina Plaza
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Other strategies
There may be other strategies that the City’s consultant could come up with, which are acceptable to HCD for finding compliance with state law. City staff will confer with the consultant and propose reasonable strategies at a later date.

Sustainability Impact
No sustainability impact.

Fiscal Impact
This project will involve amending the Housing Element and will include consultant costs estimated between $100,000 to $300,000 depending on the extent of the environmental review and community outreach processes. A majority of the deficit stems from changes to state law regarding applicability of SB35 and associated affordable housing requirements. In June 2024, the City entered into a Settlement Agreement related to the Vallco Town Center (Rise) development, in which the developer committed to funding long term planning efforts which arise as a result of the development. Since the current No Net loss issue stems largely from modifications made to affordability levels in the project, staff is determining the developer’s share of this planning effort’s cost.

City Work Program (CWP) Item/Description
FY 25-26 - Housing Site Inventory: Options for expanding Housing Element Site inventory to address potential shortfall in zoned capacity
Council Goal
Housing
California Environmental Quality Act
Amending the Housing Element will be subject to the California Environmental Quality Act (CEQA), but the level of CEQA review has yet to be determined.

Prepared by: Piu Ghosh, Planning Manager
Luke Connolly, Assistant Director of Community Development Reviewed by: Benjamin Fu, Director of Community Development Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – City Council Informational Memo re: No Net Loss dated January 30, 2026 21 CC 03-03-2026 Searchable Packet
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COMMUNITY DEVELOPMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3403 • FAX: (408) 777-3366
CUPERTINO.GOV

CITY COUNCIL INFORMATIONAL MEMORANDUM
Date: January 30, 2026
To: Cupertino City Council
From: Benjamin Fu, Director of Community Development
Re: Housing Element No Net Loss Law Requirements
Background:

Housing Element Update and RHNA
The City Council approved Cupertino’s 6th Cycle Housing Element update on May 14, 2024, and the California Department of Housing and C ommunity Development (HCD ) subsequently certified that the City’s Housing Element was compliant with State housing law on September 2, 2024. HCD’s certification essentially completed the City’s Housing Element update process for the 6 th Cycle planning period, which covers the years 2023-2031. The City’s Regional Housing Needs Allocation (RHNA) for the 6th Cycle was 4,588, meaning the City was required to identify potential housing sites, referred to in the Housing Element as Priority Housing Sites , that could provide the capacity for at least 4,588 total residential units and ensure that the sites’ land use designations (i.e., General Plan and zoning) would allow for this level of development. In its guidance for updating the Housing Element, HCD stipulates, but does not require , that cities include a “buffer” of 15 -30% in excess of their RHNA in order to ensure adequate housing unit capacity is maintained should sites subsequently develop at lower densities or at lower levels of affordability than anticipated.

The City’s Housing Element, certified by HCD in September 2024 , provided a unit capacity of 5,881 units, exceeding its RHNA by 28%, or 1,293 units. The RHNA requirements, however, must be met by income levels —Very Low, Low, Moderate and Above Moderate ( i.e., market rate)— not simply the total number of RHNA units. By income level, t he City’s RHNA of 4,588 breaks down as follows:
• 1,880 Very Low/Low (these income categories are combined in the Housing Element) units
• 755 Moderate units
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• 1,953 market rate units
This means that 56.5% of the City’s RHNA is in the “affordable” income categories of Very Low/Low and Moderate. While, at the time of its certification, the City’s Housing Element had a buffer of 28% based on its total RHNA of 4,588, and its total housing unit capacity of 5,881, by income category, the majority of the buffer was in the market rate income category. Specifically, at the time of the Housing Element’s certification the Very Low/Low category had a buffer of 8%, or 157 units; the Moderate category a buffer of 12%, or 92 units ; and the market rate category a buffer of 53%, o r 1,044 units. A factor that contributed to the marginal buffer in the affordable categories occurred immediately before the City’s adoption of the Housing Element when the owner of four high-density Priority Housing Sites requested that their properties not be included in the Housing Element , resulting in a loss to the sites inventory of 141 Very/Low units, 62 Moderate units and 169 market rate units.

No Net Loss Law
In order to expand the supply of housing, particularly affordable housing, and to ensure that cities did not take actions to reduce the potential capacity of new residential development, the State Legislature adopted the No Net Loss Law in 2002. The No Net Loss Law ensures that cities maintain a sufficient supply of adequate sites in the ir Housing Element sites inventor ies (i.e., Priority Housing Sites) throughout the RHNA planning period. This law was amended in 2017 by Senate Bill 166, which requires that sufficient adequate housing sites are available at all times (emphasis added) to meet a city’s remaining unmet housing needs for each income category (emphasis added). To comply with the No Net Loss Law, as cities make decisions regarding zoning and land use, or as development occurs, cities must assess their ability to accommodate new housing on the remaining Priority Housing Sites in their Housing Elements. If either land use decisions or the approval of development on Priority Housing Sites results in a shortfall of capacity to accommodate its remaining housing need for each income category a city must then add adequate sites or otherwise compensate for the capacity shortfall through the “upzoning” of existing Priority Housing Sites.

Prior to the certification of the City’s Housing Element by HCD, several residential developers submitted SB 330 (i.e., Housing Crisis Act) preliminary applications to develop new townhome projects on Priority Housing Sites at densities (generally around 20 units/acre for townhomes) lower than required by the Housing Element ; there are 58 Priority Housing Sites listed in the Housing Element, 80% of which have minimum residential densities of 50 units/per acre. The SB 330 preliminary application process allows applicants to “lock in” a property’s development standards to thos e in place at the time the ir applications were submitted. Since these Priority Housing Sites were not yet “upzoned” when the SB 330 applications were submitted developers are able to proceed with their projects and cities are precluded from denying the ir applications on the basis that they do not comply with the residential density ranges or development standards in place post-Housing Element certification.

Between July 2025 and January 2026, the City approved three projects, all townhome developments, on Priority Housing Sites that used the SB 330 process to lock in lower densities. 23 CC 03-03-2026 Searchable Packet
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In the Housing Element, all of these sites were projected to have far more total units and higher proportions of affordab le units than were approved . For instance , the Housing Element forecasted two of the locations , the former Fontana’s Restaurant/Pizza Hut and the United Furniture sites, to provide a total of 306 units, 59 of which would be Low income units and117 Moderate income units. The approved developments, however, will only provide a total of 114 units, none being Low income and 23 Moderate income. The United Furniture site project, approved on December 16, 2025 , created a No Net Loss shortfall of one unit in the Moderate income category. The approval of the Dividend Homes townhome project on Stevens Cree k Boulevard on January 21, 2026 increased the shortfall by seven Moderate income units, such that the City is currently short eight Moderate income units.

The City currently maintains a slight surplus of 53 units in the Low income category, but this may be affected by the pending modification application for The Rise (former Vallco Mall site) , currently under review, since The Rise is included in the Housing Element as a pipeline project (meaning it has been approved but not built) that was anticipated to provide a significant amount of Low income units.

Another factor in the No Net Loss shortfall in affordable units is the City’s RHNA calling for

56.5% of the 6th Cycle Housing Element units to be affordable to Very Low, Low and Moderate income households, while the City’s below market -rate (BMR) housing requirements are 15% Low income units (this includes Very Low income units as well) for new rental developments, such as apartments, and 20% Moderate income units (this includes Median and Moderate income units) for new owner-occupied developments, such as townhomes and condominiums . This disparity in affordability levels between the RHNA and the City’s BMR requirements inevitably results in shortfalls as sites develop, unless projects on Priority Housing sites provide BMR units at percentages greater than required by the City. At present, the City has two applications for 100 percent affordable projects under review that are expected to go to hearings for approval in the next few months. Those projects are the City-owned Mary Avenue site and the County-sponsored Teacher Housing project (also known as the Simeon site) immediately north of the former Vallco Mall site.

In brief, No Net Loss requires that when a city approves a development on a parcel identified in its Housing Element sites inventory with fewer units than shown in its Housing Element, the city must either make findings that the Housing Element’s remaining sites have sufficient capacity to accommodate the remaining unmet RHNA by each income level, or identify and make available sufficient sites to accommodate the remaining unmet RHNA for each in come category to avoid remaining in a “no net loss” situation . A nother option would be to upzone existing Priority Housing Sites to accommodate additional residential capacity , so long as that upzoning can be realistically developed. These actions represent a fundamental alteration to the Housing Element, thus the Housing Element sites inventory must be amended and, pursuant to Government Code section 65585(b), be submitted to the HCD for review to ensure compliance with State Housing Element law.

Sustainability Impact
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No sustainability impact.

Fiscal Impact
This project will involve amending the Housing Element and will include consultant costs estimated between $100,000 to $300,000 depending on the extent of the environmental review and community outreach processes.

City Work Program (CWP) Item/Description
FY 25-26 - Housing Site Inventory : Options for expanding Housing Element Site inventory to address potential shortfall in zoned capacity

Council Goal:

Housing.

California Environmental Quality Act
Amending the Housing Element will be subject to the California Environmental Quality Act (CEQA), but the level of CEQA review has yet to be determined. _____________________________________
Prepared by: Luke Connolly, Assistant Director of Community Development Reviewed by: Benjamin Fu, Director of Community Development Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – HCD Memo, dated October 2, 2019, regarding No Net Loss Law 25 CC 03-03-2026 Searchable Packet
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov

Octob
er 2, 2019

MEMORANDUM FOR: Planning Directors and Interested Parties

FROM: Zachary Olmstead, Deputy Director
Division of Housing Policy Development

SUBJE
CT: No Net Loss Law
Government Code Section 65863

The purpose of Government Code Section 65863 (No Net Loss Law), is to ensure development opportunities remain available throughout the planning period to accommodate a jurisdiction’s regional housing need allocation (RHNA), especially for lower- and moderate- income households. This memorandum provides guidance on the implementation of Government Code section 65863, including amendments pursuant to Chapter 367, Statutes of 2017 (Senate Bill 166).

Summary of No Net Loss Requirements

• A jurisdiction must maintain adequate sites to accommodate its remaining unmet RHNA by each income category at all times throughout the entire planning period.

• A jurisdiction may not take any action to reduce a parcel’s residential density unless it makes findings that the remaining sites identified in its Housing Element sites inventory can accommodate the jurisdiction’s remaining unmet RHNA by each income category, or if it identifies additional sites so that there is no net loss of residential unit capacity.

• If a jurisdiction approves a development of a parcel identified in its Housing Element sites inventory with fewer units than shown in the Housing Element, it must either make findings that the Housing Element’s remaining sites have sufficient capacity to accommodate the remaining unmet RHNA by each income level, or identify and make available sufficient sites to accommodate the remaining unmet RHNA for each income category.

• A jurisdiction may not disapprove a housing project on the basis that approval of the development would trigger the identification or zoning of additional adequate sites to accommodate the remaining RHNA.

If you have any questions, or would like additional information or technical assistance, please contact the Division of Housing Policy Development at (916) 263-2911. 26 CC 03-03-2026 Searchable Packet
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Table of Contents

Background ......................................................................................................................................... 3 No Net Loss Law and Charter Cities ................................................................................................. 4 Responsibilities and Requirements Under No Net Loss Law ......................................................... 4 Maintaining Sites ................................................................................................................................ 4 Helpful Hints ...................................................................................................................................... 5 Decisions to Carefully Consider – Development Limitations ............................................................. 5 Jurisdiction Actions ........................................................................................................................... 6 Helpful Hints ...................................................................................................................................... 7 Decisions to Carefully Consider – Changes to Zoning ...................................................................... 7 Approval of Development at a Lower Density .................................................................................. 8 Helpful Hints ...................................................................................................................................... 9 Decisions to Carefully Consider – Development Approval ................................................................ 9 California Environment Quality Act (CEQA) ................................................................................... 10 Failure to Comply with No Net Loss Law ........................................................................................ 10 Resources .......................................................................................................................................... 11 Identifying your Remaining RHNA and Maintaining Capacity .......................................................... 11 No Net Loss Capacity Calculation Tool Example ............................................................................ 11 No Net Loss Law Decision Flow Chart ............................................................................................ 14 Sample Housing Element Program ................................................................................................. 16 No Net Loss Law Statute (Government Code Section 65863) ........................................................ 17

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Background

Since 1969, California has required that all jurisdictions (cities and counties) adequately plan to meet the housing needs of everyone in the community. California’s local governments meet this requirement by adopting Housing Elements as part of their general plan. To demonstrate the availability of land to accommodate future housing development, a Housing Element is required to include an inventory of housing sites, or “adequate sites”, with sufficient capacity by income level to accommodate a jurisdiction’s RHNA by income category. (Gov. Code, § 65583, subd. (a)(3).)

Example: RHNA By Income Category
Very Low Income 300 Units
Low Income 260 Units
Moderate Income 250 Units
Above Moderate Income 650 Units
Total RHNA 1,460 Units

To expand the supply of housing, including affordable housing, and to ensure jurisdictions do not take actions to reduce the potential capacity for new development, the Legislature adopted the No Net Loss Law in 2002. The No Net Loss Law ensures that a jurisdiction maintains a sufficient supply of adequate sites in the Housing Element sites inventory throughout the RHNA planning period. This law was amended by Chapter 367, Statutes of 2017 (Senate Bill 166), which requires sufficient adequate sites to be available at all times to meet a jurisdiction’s remaining unmet housing needs for each income category. To comply with the No Net Loss Law, as jurisdictions make decisions regarding zoning and land use, or development occurs, jurisdictions must assess their ability to accommodate new housing on the remaining sites in their Housing Element site inventories. A jurisdiction must add adequate sites if land use decisions or development results in a shortfall of sufficient sites to accommodate its remaining housing need for each income category.

What is an adequate site?

Pursuant to Government Code section 65583.2, an adequate site must be available and suitable to accommodate development. Factors include:

• Have infrastructure available or planned to support a housing development. • Be available to be developed in the planning period. For non-vacant sites, this means that the existing use is not an impediment to additional residential development. • Be appropriately sized (larger than half an acre and smaller than 10 acres) to accommodate lower income housing.
• For sites accommodating lower income households, the sites must have appropriate zoning as demonstrated by analysis, or by meeting prescribed densities. • Identify the number of units (capacity) that can be realistically accommodated on the site.

For more information, visit the Department’s Housing Element Building Block Webpage. 28 CC 03-03-2026 Searchable Packet
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No Net Loss Law and Charter Cities

Pursuant to Chapter 856, Statutes of 2018 (Senate Bill 1333), the No Net Loss Law applies to all jurisdictions, including charter cities. This requirement was effective on January 1, 2019, and applies to the current and subsequent Housing Element planning periods.

Responsibilities and Requirements Under No Net Loss Law

No Net Loss Law can be divided into three statutory areas of responsibility for jurisdictions to consider when making land-use decisions related to sites and capacity identified in the Housing Element to accommodate the RHNA:

• Maintaining Sites (Government Code section 65863(a))
• Jurisdiction Actions Relating to Zoning (Government Code section 65863(b)(1)) • Approval of Development at a Lower Density (Government Code section 65863(b)(2)) Maintaining Sites

A jurisdiction must ensure their Housing Element sites inventory continues to have capacity at all times to accommodate the RHNA by income group throughout the planning period. This requires a careful accounting of development on the sites identified in the Housing Element and residential projects throughout the jurisdiction. Action by the jurisdiction to modify development standards in a way that would result in a lower density, limit or stop development on sites identified in the inventory, exchange sites in the inventory, or downzone sites would trigger No Net Loss unless the jurisdiction can make the required findings or identify alternative sites.

If, at any time during the planning period, the jurisdiction finds that there is a shortfall of sites to accommodate its remaining RHNA, the jurisdiction must take immediate action to correct the shortfall by amending its Housing Element sites inventory to either include sites previously unidentified with capacity to accommodate the shortfall, or sites that have been rezoned to correct for the shortfall.

Failure to do so constitutes a violation of the No Net Loss law. Please note, Housing Element law requires the element to identify sufficient adequate sites to accommodate the RHNA for all income levels. However, many jurisdictions choose to include sites in their Housing Element inventory above and beyond what is required to accommodate RHNA, including sites that are not considered suitable to accommodate RHNA for lower-income households (e.g., sites less than one-half acre or larger than 10 acres). When making findings that the Housing Element continues to accommodate the remaining RHNA, jurisdictions should only consider capacity of sites in the inventory that was determined adequate. Jurisdictions should not consider inadequate or unsuitable sites as adequate or available to accommodate RHNA for the purposes of No Net Loss Law.

The lack of sites to accommodate the jurisdiction’s RHNA represents a fundamental alteration to the jurisdiction’s ability to meet Housing Element Law. Therefore, the amended inventory must (1) demonstrate sites to address the shortfall meet the adequate site requirements of Housing Element Law, pursuant to Government Code section 65585(b), and (2) be submitted to the California Department of Housing and Community Development (Department) for review to ensure compliance with state Housing Element Law. (Cal. Gov’t Code §65580 et seq.) (Housing Element Law).

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Helpful Hints
To ensure that su
fficient capacity exists in the Housing Element to accommodate the RHNA throughout the planning period, create a buffer in the Housing Element inventory of at least 15 to 30 percent more capacity than required, especially for capacity to accommodate the lower-income RHNA. Jurisdictions can also create a buffer by projecting capacity less than what is allowed from the maximum density to allow for some reductions in density, or rezoning additional sites above what is needed to accommodate the RHNA.

Jurisdicti
ons should keep an updated accounting of development on the sites in the inventory and throughout the jurisdiction to ascertain the impact that development has on accommodating the remaining RHNA. This can be done in any number of ways, but an example of one methodology can be found in the Resources section below, in addition to a program committing to such an update in the Housing Element.

Decisions to Carefully Consider – Development Limitations No Net Loss Law explicitly states that at no time may a jurisdiction take an action to permit or cause the sites inventory to be insufficient to meet its remaining RHNA without triggering the statute. The only exception is the 180-day timeframe for replacing capacity from the approval of a development at a lower density that results in a shortfall of sites to accommodate the RHNA (see page 8.) Therefore, a jurisdiction should carefully consider the introduction or adoption of development limitations (e.g., development standard limitations, policies or ordinances that affect the development potential of a site, development moratorium). A jurisdiction should carefully examine the effect of these types of actions on development capacity and consult with their legal counsel prior to approval.

Zoning and Developm
ent Standard Modifications – Changes in development standards may affect the potential capacity of a site. For example, an increase in parking requirements, reductions in height limitations or lot coverage, new design requirements, or modifications to set-back requirements, all impact the buildable area of a site and could reduce the housing unit potential. Zoning and development standard modifications should be carefully considered to ensure that they do not impact the potential capacity of a site in a jurisdiction’s inventory.

Growth Control Ordinances – If a jurisdiction considers adoption of an ordinance or other measure that limits growth or development potential through unit or population caps, or limits where development can occur through the use of buffers, or by phasing development, it must consider the statewide shortage of housing and the requirements of No Net Loss Law. The adoption of one or more of these types of ordinances could prevent a jurisdiction from accommodating its RHNA either by affecting a site in the inventory, or by limiting development as a whole. Proposed growth limiting ordinances should be prudently drafted so as not to impact the accommodation of the remaining RHNA throughout the planning period. Otherwise, implementation of the ordinance may violate No Net Loss Law.
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How do growth control ordinances relate to the RHNA?
Government Code section 65302.8 requires findings be made to ensure that a jurisdiction can continue to fulfill requirements of Housing Element Law, including the accommodation of the RHNA. Findings include a description of the following:
• The jurisdiction’s RHNA.
• The specif
ic housing programs and activities being undertaken by the jurisdiction to achieve RHNA objectives.
• How the public health, safety, and welfare would be promoted. • Fiscal and environmental resources available to the local jurisdiction.

Moratoriums – Pursuant to Government Code section 65858, jurisdictions may adopt a 45-day interim ordinance prohibiting any uses, including housing, that may be in conflict with a contemplated general plan, specific plan, or zoning proposal. This applies to a general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering, studying, or intends to study within a reasonable time. While the ordinance may be extended for other uses, a moratorium on the development of multifamily housing cannot be extended unless specific findings are made. In addition, regardless of its duration, a moratorium that affects sites in the Housing Element inventory may be in conflict with the No Net Loss Law, as the law requires a jurisdiction to maintain capacity at all times to accommodate the RHNA. A jurisdiction should consult counsel prior to enacting a moratorium on housing.

Jurisdiction Act
ions
Jurisdiction actions include downzoning or other actions taken by a jurisdiction to reduce a parcel’s allowable residential density. This can be done through a change in zoning or an imposition of density limitations that preclude that ability to achieve densities assumed in the Housing Element sites inventory. If the parcel to be downzoned is identified in the Housing Element, a jurisdiction must make written findings, supported by substantial evidence, that:
• The reduction is consistent with the jurisdiction’s adopted general plan, including the Housing Element. For example, this finding could be made if downzone does not change the land use and zoning designation.
• The remaining sites identified in the Housing Element are adequate to meet the requirements of Section 65583.2 and to accommodate the jurisdiction’s remaining share of the RHNA for the planning period. The finding must include a quantification of the remaining unmet need for the jurisdiction’s RHNA at each income level and the remaining capacity of sites identified in the Housing Element to accommodate that need by income level. 31 CC 03-03-2026 Searchable Packet
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If a jurisdiction cannot make these findings, it may take action to reduce the residential density of a parcel only if it identifies or rezones additional sufficient adequate sites with an equal or greater residential density in the jurisdiction so that there is sufficient residential unit capacity appropriate to accommodate the RHNA by income level. Actions to identify additional sites or rezone must occur before or concurrently with any action or approval to reduce a parcel’s density. Sites identified or rezoned must meet the following criteria:

• Must be considered an adequate site pursuant to the requirements of Government Code section 65583.2.
• If the capacity to be replaced was on a site that was zoned by-right pursuant to Government Code section 65863.2 (h) and (i), then the replacement site must also satisfy those requirements.

As these actions taken by the jurisdiction represent a fundamental alteration to the Housing Element, the Housing Element sites inventory must then be amended and, pursuant to Government Code section 65585(b), be submitted to the Department for review to ensure the compliance with state Housing Element Law, prior to, or concurrently with, any action or approval to reduce a parcel’s density.

Helpful Hints

If unsur
e as to whether new sites identified or rezoned will meet Housing Element adequate sites requirements, contact the Department’s Housing Policy Division for a Housing Element reviewer to provide technical guidance.

Rezoned si
tes may include sites previously identified in the sites inventory that are rezoned to a higher density zoning designation than identified in the sites inventory.

Decisions to Carefully Consider – Changes to Zoning

General Plan Updates – Sometimes land use inconsistencies arise during a general plan update when undertaken separately from the Housing Element. A jurisdiction updating the land use element of the general plan must consider the sites inventory of the Housing Element. If sites identified in the Housing Element site’s inventory will be downzoned as part of the general plan update, other sites must be identified or rezoned to accommodate the resulting shortfall of capacity. Under state law, the land use element must be consistent with the Housing Element, and if the land use element does not permit the density in the Housing Element, the Housing Element or land use element must be amended to achieve consistency.

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Approval of Development at a Lower Density

A jurisdiction must make written findings or identify additional site capacity if a development is allowed with a lower density than what was assumed in the sites inventory of the Housing Element.

A lower residential density sometimes results from a jurisdiction either approving a development with residential units less than what was assumed for the site or affordable to a different income category than the site was assumed to accommodate. Lower residential density could also result from another use, such as commercial being approved on a site identified in the inventory for housing regardless of what the zoning allows.

What constitutes a “lower-density”?
For jurisdictions with an adopted Housing Element found in compliance with Housing Element Law:
• Fewer units will be devel oped on the site than projected in the sites inventory (capacity) or program of the Housing Element.

For jurisdictions out of compliance with Housing Element Law:
• A density that is lower than 80 perc ent of the maximum allowable residential density for that parcel, or 80 percent of the maximum density required by Government Code section 65583.2(c)(3), whichever is greater. For more information on default densities, please see the Department’s Building Block website.

At the time of approval, the following written findings must be made, and supported by substantial evidence in the record:

• R emaining sites identified in the Housing Element are adequate to meet the jurisdiction’s remaining RHNA for the planning period by income category. • The findings should include a quantification of the remaining unmet need for the jurisdiction’s RHNA at each income level and the remaining capacity of sites identified in the Housing Element, to accommodate that need by income level.

If the approval of a development at a lower residential density results in the remaining sites capacity becoming inadequate to accommodate the RHNA by income category, a jurisdiction has up to 180 days from the approval to identify, or rezone, “sufficient additional, adequate, and available sites” to accommodate the remaining RHNA for each income category. Sites identified or rezoned must meet the following criteria:

• Must be considered an adequate site pursuant to the requirements of Government Code section 65583.2.
• If the capacity to be replaced was on a site that was zoned by-right pursuant to Government Code section 65863.2 (h) and (i), then the replacement site must also satisfy those requirements.

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A jurisdiction must report in the jurisdiction’s Annual Progress Report (APR) any sites that have been identified or rezoned to accommodate the resulting shortfall due to the approval of a development at a lower density. APRs are required to be sent to the Department by all jurisdictions by April 1, pursuant to Government Code section 65400. For more information on completing this section of the APR, see the Department Webpage and select “Annual Progress Reports.”

Who makes the findings?
The body that “takes action or approves” the jurisdiction action to reduce a parcel’s density or approve a development at a lower density would make the findings. For example, if a zoning administrator approves a development at a lower density, as part of the approval, the administrator would include the appropriate findings. For instance, if the development approval is ministerial under the Streamlined Ministerial Approval Process (SB 35, 2017), the findings should be included as part of the plan review and approval. If the City Council is approving a zone change, it must include the findings in the resolution adopting the zone change.

Helpful Hints
The jurisdiction has only 180 days to complete any rezoning needed to accommodate a shortfall of adequate sites to accommodate the RHNA due to the approval of a development at a lower density. To ensure the rezones can be completed on time, it is recommended that the jurisdiction begin the rezone process early in the development application approval process.

Jurisdic
tions may post the sites inventory on their website with the capacity estimates from the Housing Element for developers to reference when considering projects on sites identified in the Housing Element.

Decisions to Carefully Consider – Development Approval

Jurisdictions out of compliance with state Housing Element Law - No Net Loss Law provisions related to approving a lower density development applies to all jurisdictions regardless of Housing Element compliance status. A jurisdiction that has not adopted a Housing Element within 90 days of the due date, or has a Housing Element out of compliance, must still comply with No Net Loss requirements, even though they may not have a Housing Element Law compliant sites inventory. If the jurisdiction does not have a current sites inventory to compare the project unit count, the determination of lower density would be required for all new housing development.

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Denying an application - A jurisdiction may not deny a housing development application on the basis that approval of the development would trigger the identification, or zoning, of additional adequate sites to accommodate the remaining RHNA.

However, since the term “housing development” is used in the statute, it does not prevent a jurisdiction from denying a non-residential development on an identified site if it would trigger the identification, or rezoning, of additional adequate sites.

Requests for developer assistance with complying with No Net Loss Law – While the jurisdiction is solely responsible for compliance with No Net Loss Law, under limited circumstances the statute does allow a jurisdiction the option to require the applicant to assist the jurisdiction in meeting these provisions. Specifically, requests can be made if an applicant’s initial development application requests a residential density that results in the remaining sites in the sites inventory being insufficient to accommodate it remaining RHNA. A jurisdiction cannot require developer assistance if the subsequent approval process results in a reduction of units.

Types of assistance required could include help with the identification of additional sites for potential rezones or community outreach. However, requests should be balanced with the potential impact on the overall viability of the project. Overly burdensome requirements may make a development project financially infeasible and could, in effect, constitute a denial of the project or may violate the Housing Accountability Act (Government Code section 65589.5.)

California Environment Quality Act (CEQA)

The act of identifying or making available additional adequate sites, in and of itself, to comply with the statutory requirements to accommodate the remaining unmet RHNA, does not trigger a CEQA review. However, if making available additional adequate sites requires an increase in density, a rezone, or other actions that constitute a “project” under CEQA, a CEQA analysis would be required.

When approving a site at a lower residential density, the possibility of a CEQA analysis should be considered since the CEQA review must be completed within the 180-day timeline to identify and rezone additional, adequate sites to accommodate the remaining RHNA by income category. The failure to complete a timely CEQA analysis would render the additional sites inadequate to accommodate the remaining unmet RHNA. This would be a violation of No Net Loss Law and could also render the Housing Element out of compliance with state Housing Element Law.

Failure to Comply with No Net Loss Law

In addition to violating of the No Net Loss Law, the failure to ensure that there are sufficient adequate sites to accommodate the unmet RHNA by income category throughout the entire planning period is also a violation of the Housing Element Law. This is because the Housing Element will also fail to identify adequate sites to accommodate the RHNA by income category. As a result, pursuant to Government Code section 65585 (i) and (j), the Department may revoke a jurisdiction’s Housing Element compliance and/or refer the violation to the Attorney General. In addition, a third party may file an action to challenge the jurisdiction in court.
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Resources

Identifying Your Remaining RHNA and Maintaining Capacity

A jurisdiction should implement an ongoing, project-by-project evaluation of each approved residential development to ensure that sufficient adequate site capacity is available to accommodate the remaining RHNA by income category throughout the planning period. This evaluation could also be used to complete the APR required to be sent to the Department by April 1 of each year.

The evaluation procedure could utilize a spreadsheet or tool, such as the No Net Loss Capacity Calculation Tool below, to subtract the number of residential units in each approved development from the RHNA to determine the remaining unmet RHNA by income category. The total number of approved units by income category could then be subtracted from the Housing Element’s sites inventory site capacity by income category to determine the remaining site capacity.

No Net Loss Capacity Calculation Tool Example

Step 1: Determine remaining RHNA

• Identify the reported RHNA from permitted projects as reported in the Housing Element Annual Progress Report (Table B of the Annual Progress Report). If the jurisdiction has not yet completed those reports for the planning period, please go to the Departments Webpage and select “Annual
Progress Reports.”
• Identify any projects from the planning period that have received their approvals/entitlements and are anticipated to pull their building permits.
• Identify the number of units permitted or that have been approved/entitled in the current reporting year (including accessory dwelling units and other alternatives under Government Code section 65583.1.)
• Calculate the remaining RHNA to date.
• If determining potential No Net Loss capacity of a proposed development, subtract the units from the proposed development to get the remaining RHNA resulting from the proposed project.

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Example:

City A has an application for a market rate project for 75 high-end multifamily apartments. This project is being proposed on a site identified in the inventory as having the ability to accommodate a portion of its very low- and low-income RHNA.

Table A: Remaining RHNA
Very
Low-
Income
Low-
Income
Moderate-
Income
Above Moderate-
Income
RHNA 300 260 250 650
Year Reported Progress
2014 -5 -15 -2 -50
2015 -5 -100
2016 -25 -25 -20 -60
2017 -250
2018 -15 -60 -25 -75
Project
Name/APN
Projects approved/entitled anticipated to pull permits
Siempre Verde
001-256-2154, -
57 -4
Project
Name/APN
Current Year Progress
Hightop Condos
001-256-5574
-7 -75
Sunflower Apt
001-256-4475
-25 -50
Remaining RHNA To Date
230 103 198 36
Project
Name/APN
Proposed Project RHNA
Magnolia Luxury
Apt
001-256-4472
-75
Remaining RHNA with Proposed Development
230 103 198 0

Step 2: Determine remaining capacity from the Housing Element sites inventory*

• Identify the total site capacity from the Housing Element by income category. • List the capacity estimated in the Housing Element for an accessory dwelling unit (ADU), or other alternative site capacity methodology.
• List the capacity by income category as identified in the Housing Element inventory for each site identified in the inventory that has an approved/entitled or permitted project in the planning period (identified in the previous table).
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Some projects will be developed on sites not identified in the Housing Element. These sites should not be included in the table below, as their capacity was not anticipated to accommodate a portion of the RHNA. They are included in the previous calculation to determine the remaining RHNA. As a result, the additional capacity from these projects can help mitigate loss in capacity from other projects, depending on their affordability.
• For each site rezoned that was identified in the Housing Element (but does not include a project per above) identify the adjusted capacity by income as result of the zone change. • Calculate the remaining available capacity.
• Subtract the capacity identified in the inventory for the proposed development or rezone to calculate the remaining capacity in the sites inventory by income level.

Example Continued:

Table B: Remaining Capacity*
Very Low-
Income
Low-
Income
Moderate-
Income
Above
Moderate-
Income
Capacity from sites 325 370 260 800
Capacity from ADU or other
alternative site capacity
methodology
15 10
Project Name/APN Sites Inventory RHNA from Approved/Entitled or Permitted Project
001-256-4758- 868 -160
001-256-5631 -25 -25
001-256-5270 - 330 -60
Dell Webb Master Plan -250
002-40526-7785 -50 -75
002 -526 -7788 -15
001-256-5575 -25 -155
APN Capacity changes due to rezone
003-578-7584 (downzone to open
space)
-30
Remaining Sites Inventory Capacity to Date
240 125 215 330
APN Sites Inventory Capacity from Development or
Rezone
Magnolia Luxury Apt
001-256-4472
-75
Remaining Sites Inventory Capacity with Proposed Development or Rezone 240 50 215 330

* Note: For most 5th cycle Housing Elements, jurisdictions will need to make assumptions on capacity by income category based on density and the analysis provided in the Housing Element, since the 5th cycle sites are not required to be identified by income category. However, for the 6th and subsequent cycles, sites will be required to identify capacity by income level. Some jurisdictions have chosen to combine low and very low- income RHNA for purposes of calculating site capacity, which should be reflected in supporting charts.
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Step 3: Compare remaining RHNA with remaining sites inventory to determine if additional capacity will be needed.

• Input the remaining RHNA from Table A. (If this calculation is due to a proposed development, enter the remaining RHNA from the line “Remaining RHNA with Proposed Development”.) • Input the remaining sites inventory capacity with a proposed development or rezone. • Calculate the No Net Loss potential by subtracting the available capacity from the remaining RHNA. If the result is negative, there is a net loss in capacity, and the difference must be accommodated pursuant to No Net Loss Law.

Example:

Approval of the Magnolia Luxury Apartments would result in a net capacity loss of 53 units. City A would have to rezone or identify additional capacity for at least 53 low-income units.

Table C: No Net Loss Calculation
Very Low-
Income
Low-Income Moderate-
Income
Above
Moderate-
Income
Remaining Capacity (Table B) 240 50 215 330
Remaining RHNA (Table A) 230 103 198 0
No Net Loss Calculation +10 -53 +17 +330

Please note: There may be many unique circumstances that do not fall neatly into the above example. This calculation tool is meant to be a framework to help jurisdictions think about the best way to identify potential No Net Loss situations.

No Net Loss Law Decision Flow Chart

The following flow chart is intended to help visualize how to determine if a project or a decision would be subject to No Net Loss Law and its remedies. Jurisdictions should consult with legal counsel prior to final determination on whether a project or decision triggers No Net Loss requirements.

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No Net Loss Law Decision Flow Chart

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Sample Housing Element Program

Sample Program: No Net Loss of Residential Capacity to Accommodate the RHNA by Income Category (Government Code section 65863)
To ensure sufficient residential capacity is maintained to accommodate the RHNA for each income category, within one year of adoption of the Housing Element, develop and implement a formal, ongoing (project-by-project) evaluation procedure pursuant to Government Code section 65863. The evaluation procedure will track the number of extremely low-, very low-, low-, moderate-, and above moderate-income units constructed to calculate the remaining unmet RHNA. The evaluation procedure will also track the number of units built on the identified sites to determine the remaining site capacity by income category and will be updated continuously as developments are approved.

No action can be taken to reduce the density or capacity of a site (e.g., downzone, moratorium), unless other additional adequate sites are identified prior to reducing site density or capacity.

If a development is being approved on an identified site at a lower density than what was assumed for that site identified in the Housing Element, additional adequate sites must be made available within 180 days of approving the development. A program to identify the replacement sites, and take the necessary actions to make the site(s) available and ensure they are adequate sites, will be adopted prior to, or at the time of, the approval of the development.

Time Frame: Within six months of adoption of the Housing Element, develop and implement a formal ongoing evaluation procedure pursuant to Government Code section 65863.

Subsequent to adopting an evaluation procedure, monitor rezones and development of residential units, and update Housing Element sites inventory. Housing Element sites inventory is posted on the Planning Department’s website and will be updated at least once a year.

At least annually, update the sites inventory in conjunction with Housing Element Annual Reports pursuant to Government Code section 65400, as necessary.

Responsibility: Community Development Department

Funding Source: General Fund

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No Net Loss Law Statute (Government Code Section 65863)

65863.
(a) Each city, county, or city and county shall ensure that its housing element inventory described in paragraph (3) of subdivision (a) of Section 65583 or its housing element program to make sites available pursuant to paragraph (1) of subdivision (c) of Section 65583 can accommodate, at all times throughout the planning period, its remaining unmet share of the regional housing need allocated pursuant to Section 65584, except as provided in paragraph (2) of subdivision (c). At no time, except as provided in paragraph (2) of subdivision (c), shall a city, county, or city and county by administrative, quasi-judicial, legislative, or other action permit or cause its inventory of sites identified in the housing element to be insufficient to meet its remaining unmet share of the regional housing need for lower and moderate-income households.
(b) (1) No city, county, or city and county shall, by administrative, quasi-judicial, legislative, or other action, reduce, or require or permit the reduction of, the residential density for any parcel to, or allow development of any parcel at, a lower residential density, as defined in paragraphs (1) and (2) of subdivision (g), unless the city, county, or city and county makes written findings supported by substantial evidence of both of the following:
(A) The reduction is consistent with the adopted general plan, including the housing element. (B) The remaining sites identified in the housing element are adequate to meet the requirements of Section 65583.2 and to accommodate the jurisdiction’s share of the regional housing need pursuant to Section 65584. The finding shall include a quantification of the remaining unmet need for the jurisdiction’s share of the regional housing need at each income level and the remaining capacity of sites identified in the housing element to accommodate that need by income level. (2) If a city, county, or city and county, by administrative, quasi-judicial, legislative, or other action, allows development of any parcel with fewer units by income category than identified in the jurisdiction’s housing element for that parcel, the city, county, or city and county shall make a written finding supported by substantial evidence as to whether or not remaining sites identified in the housing element are adequate to meet the requirements of Section 65583.2 and to accommodate the jurisdiction’s share of the regional housing need pursuant to Section 65584. The finding shall include a quantification of the remaining unmet need for the jurisdiction’s share of the regional housing need at each income level and the remaining capacity of sites identified in the housing element to accommodate that need by income level.
(c) (1) If a reduction in residential density for any parcel would result in the remaining sites in the housing element not being adequate to meet the requirements of Section 65583.2 and to accommodate the jurisdiction’s share of the regional housing need pursuant to Section 65584, the jurisdiction may reduce the density on that parcel if it identifies sufficient additional, adequate, and available sites with an equal or greater residential density in the jurisdiction so that there is no net loss of residential unit capacity.
(2) If the approval of a development project results in fewer units by income category than identified in the jurisdiction’s housing element for that parcel and the jurisdiction does not find that the remaining sites in the housing element are adequate to accommodate the jurisdiction’s share of the regional housing need by income level, the jurisdiction shall within 180 days identify and make available additional adequate sites to accommodate the jurisdiction’s share of the regional housing need by income level. Nothing in this section shall authorize a city, county, or city and county to disapprove a housing development project on the basis that approval of the housing project would require compliance with this paragraph.
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(d) The requirements of this section shall be in addition to any other law that may restrict or limit the reduction of residential density.
(e) This section requires that a city, county, or city and county be solely responsible for compliance with this section, unless a project applicant requests in his or her initial application, as submitted, a density that would result in the remaining sites in the housing element not being adequate to accommodate the jurisdiction’s share of the regional housing need pursuant to Section 65584. In that case, the city, county, or city and county may require the project applicant to comply with this section.

The submission of an application for purposes of this subdivision does not depend on the application being deemed complete or being accepted by the city, county, or city and county. (f) This section shall not be construed to apply to parcels that, prior to January 1, 2003, were either (1) subject to a development agreement, or (2) parcels for which an application for a subdivision map had been submitted.
(g) (1) If the local jurisdiction has adopted a housing element for the current planning period that is in substantial compliance with Article 10.6 (commencing with Section 65580) of Chapter 3, for purposes of this section, “lower residential density” means the following:
(A) For sites on which the zoning designation permits residential use and that are identified in the local jurisdiction’s housing element inventory described in paragraph (3) of subdivision (a) of Section 65583, fewer units on the site than were projected by the jurisdiction to be accommodated on the site pursuant to subdivision (c) of Section 65583.2.
(B) For sites that have been or will be rezoned pursuant to the local jurisdiction’s housing element program described in paragraph (1) of subdivision (c) of Section 65583, fewer units for the site than were projected to be developed on the site in the housing element program. (2) (A) If the local jurisdiction has not adopted a housing element for the current planning period within 90 days of the deadline established by Section 65588 or the adopted housing element is not in substantial compliance with Article 10.6 (commencing with Section 65580) of Chapter 3 within 180 days of the deadline established by Section 65588, “lower residential density” means any of the following:
(i) For residentially zoned sites, a density that is lower than 80 percent of the maximum allowable residential density for that parcel or 80 percent of the maximum density required by paragraph (3) of subdivision (c) of Section 65583.2, whichever is greater. (ii) For sites on which residential and nonresidential uses are permitted, a use that would result in the development of fewer than 80 percent of the number of residential units that would be allowed under the maximum residential density for the site parcel or 80 percent of the maximum density required by paragraph (3) of subdivision (c) of Section 65583.2, whichever is greater. (B) If the council of governments fails to complete a final housing need allocation pursuant to the deadlines established by Section 65584.05, then for purposes of this paragraph, the deadline pursuant to Section 65588 shall be extended by a time period equal to the number of days of delay incurred by the council of governments in completing the final housing need allocation. (h) An action that obligates a jurisdiction to identify and make available additional adequate sites for residential development pursuant to this section creates no obligation under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) to identify, analyze, or mitigate the environmental impacts of that subsequent action to identify and make available additional adequate sites as a reasonably foreseeable consequence of that action. Nothing in this subdivision shall be construed as a determination as to whether or not the subsequent action by a city, county, or city and county to identify and make available additional 43 CC 03-03-2026 Searchable Packet
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adequate sites is a “project” for purposes of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (i) Notwithstanding Section 65803, this section shall also apply to a charter city.

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CITY OF CUPERTINO
Agenda Item
26-14887 Agenda Date: 3/3/2026
Agenda #: 1.

Subject: Recognition of March as American Red Cross Month.

Present proclamation recognizing March as American Red Cross Month.

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Proclamation
WHEREAS, In the City of Cupertino, the American Red Cross has a long history of helping our neighbors in need, as the organization’s dedication has touched millions of lives each year; and WHEREAS, March is American Red Cross Month, a special time to honor the kindness and dedication of Red Cross volunteers and donors who give their time and resources to help families and members of the community; and
WHEREAS, The American Red Cross shelters, feeds, and provides support to victims of disasters; supplies about 40 percent of the nation’s blood; teaches skills that save lives; provides international humanitarian aid; and supports military members and their families; and
WHEREAS, We applaud our heroes here in the City of Cupertino who aid the American Red Cross as they give themselves to assist their neighbors when they need a helping hand; and
WHEREAS, The City of Cupertino dedicates the month of March to all those who give to and support the American Red Cross in its mission to care for people in need and alleviate human suffering in the face of emergencies.

THEREFORE, I, Mayor Kitty Moore, and the Cupertino City Council do hereby proclaim the month of March in the City of Cupertino as American Red Cross Month
and encourage citizens of the City of Cupertino and all Americans to support this organization and its noble humanitarian mission.

IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of Cupertino to be affixed this Tuesday, March 3, 2026.

____________________________
The Honorable Kitty Moore
Mayor, City of Cupertino
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CITY OF CUPERTINO
Agenda Item
26-14842 Agenda Date: 3/3/2026
Agenda #: 2.

Subject: Recognition of March as Youth Art Month.

Present Proclamation recognizing March as Youth Art Month.

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Proclamation
WHEREAS, The City of Cupertino is committed to supporting the arts to inspire and prepare students for success in the 21st century, and to help our youth develop as productive, contributing members of a strong community; and
WHEREAS, Along with the Santa Clara County Office of Education, we share the vision of ensuring that students have access to a high-quality arts education that is culturally relevant and inclusive in all forms as part of a comprehensive education that sparks curiosity, imagination, creativity, and joy; and
WHEREAS, The month of March is recognized as Youth Arts Month in the State of California, and is an annual celebration to emphasize the value of art education for all children while encouraging support for art programs in schools; and
WHEREAS, Engagement in the arts significantly contributes to the mental health and social-emotional development of our youth, offering valuable pathways for self-expression, stress reduction, and the building of personal confidence; and
WHEREAS, Arts-learning strategies and arts integration help teachers to recognize and build upon critical thinking skills, curiosity, flexibility, communication, innovation, collaboration, and are traits required for post-secondary and workplace success; and
WHEREAS, Each March, art education is celebrated in local schools, school districts, community arts organizations, and larger communities to increase support, understanding, and interest in art education.

THEREFORE, I, Mayor Kitty Moore, and the Cupertino City Council do hereby proclaim the month of March in the City of Cupertino as Youth Arts Month
to support, encourage, and advocate for art education in our local classrooms and to celebrate students’ creativity, inspiration, and joy through artistic expression.

IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of Cupertino to be affixed this Tuesday, March 3, 2026.

____________________________
The Honorable Kitty Moore
Mayor, City of Cupertino
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CITY OF CUPERTINO
Agenda Item
26-14891 Agenda Date: 3/3/2026
Agenda #: 3.

Subject: An update on the development of the Active Transportation Plan, including a summary of Phase 2, explanations of plan edits, revised scoring criteria, and next steps. (Continued on February 19, 2026)
Continue this item to a future meeting date.

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CITY OF CUPERTINO
Agenda Item
25-14670 Agenda Date: 3/3/2026
Agenda #: 4.

Subject: Approval of February 19, 2026 City Council meeting minutes.

Approve the February 19, 2026 City Council meeting minutes.

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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Thursday, February 19, 2026

At 5:32 p.m., Mayor Moore called the Special City Council Meeting to order in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and via teleconference; and Teleconference Location Pursuant to Gov. Code 54953(b)(2): Omni Barton Creek Hotel - 8212 Barton Club Dr, Austin, Texas, 78735.

ROLL CALL

Present: Mayor Kitty Moore, Vice Mayor Liang Chao, and Councilmembers J.R. Fruen, Sheila Mohan, and R “Ray” Wang (participated virtually).

Councilmember Wang confirmed that he was in the noticed public location, that he had posted the notice of the meeting at his remote location and that no other individuals over the age of 18 were with him and that no one had indicated to him that they were intending to make public comment or address the Council.

STUDY SESSION

1. Subject: Santa Clara County Sheriff’s Office Contract Renewal Recommended Action: Receive a presentation and conduct a study session to discuss the proposed 36% increase to the Santa Clara County Sheriff’s Office (SCCSO) contract, including cost drivers, methodology changes, and regional coordination efforts with the Cities of Saratoga and Los Altos Hills.

Written communications for this item included emails to Council.

Acting Director of Administrative Services Jonathan Orozco provided a verbal report.

Councilmembers asked questions and made comments.

Mayor Moore opened the public hearing and the following members of the public spoke:

San Rao, Planning Commissioner, representing self (virtually) Peggy Griffin (virtually)
Lisa Warren (virtually)

Councilmembers asked questions and made comments.
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Mayor Moore closed the public hearing.

MOTION: Moore moved and Fruen seconded t o direct the City Manager to explore potential cost- saving measures, including those discussed under the current contract, and to assess the feasibility of establishing a Joint Powers Authority (JPA) for law enforcement services with adjacent cities. This report should include a proposed timeline outlining the necessary steps, possible implementation models, and cost estimates. This work will proceed concurrently with the ongoing meetings of the ad hoc committee. The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan and Wang. Noes: None. Abstain: None. Absent: None.

ADJOURNMENT

At 6:24 p.m., Mayor Kitty Moore adjourned the Special City Council Meeting.

REGULAR MEETING

At 6:45 p.m., Mayor Moore 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; and Teleconference Location Pursuant to Gov. Code 54953(b)(2): Omni Barton Creek Hotel - 8212 Barton Club Dr, Austin, Texas, 78735.

ROLL CALL

Present: Mayor Kitty Moore, Vice Mayor Liang Chao, and Councilmembers J.R. Fruen, Sheila Mohan, and R “Ray” Wang (participated virtually).

Councilmember Wang confirmed that he was in the noticed public location, that he had posted the notice of the meeting at his remote location and that no other individuals over the age of 18 were with him and that no one had indicated to him that they were intending to make public comment or address the Council.

CLOSED SESSION REPORT - None
CEREMONIAL ITEMS - None
POSTPONEMENTS AND ORDERS OF THE DAY - None

ORAL COMMUNICATIONS

Written communications for this item included emails to the Council.

The following members of the public spoke:
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Jennifer Griffin discussed SB 330-related development and potential reductions in retail along Stevens Creek Boulevard.

Jean Bedord discussed the use of official title and email by a Planning Commissioner and review of communication protocol for commissioners.

Belinda Hantout discussed sheriff law enforcement interactions with unhoused individuals and rental affordability.

Planning Commissioner, Santosh Rao, representing self (virtually) discussed the Mary Avenue Villas project and the City’s procedural process.

Lisa Warren (virtually) discussed the potential redevelopment of commercial sites to housing.

Rachel Rose (virtually) discussed the Mary Avenue Villas project and the City ’s procedural process.

Moore and Fruen requested an i nformational memorandum from the City Attorney to Council and commissioners on:
• Use of city vs. personal email accounts when speaking individually vs. officially, including disclaimers.
• Disclosure when personal views oppose commission positions. • Permissions for contacting agencies and contractors for agenda-related information. • Distinction between public agencies and contractors like Sheriff’s office. • Request review of past occurrences, future handling, and investigation into sheriff conduct.

CONSENT CALENDAR (Items 1-5)
Mayor Moore opened the public comment period and, seeing no one, closed the public comment period.

MOTION: Wang moved and Mohan seconded to approve Consent Calendar Items 1 -5. The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan and Wang. Noes:

None. Abstain: None. Absent: None.

1. Subject: Approval of February 3, 2026 City Council meeting minutes Recommended Action: Approve the February 3, 2026 City Council meeting minutes

2. Subject: Approval of February 10, 2026 City Council meeting minutes Recommended Action: Approve the February 10, 2026 City Council meeting minutes 53 CC 03-03-2026 Searchable Packet
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3. Subject: Ratifying Accounts Payable for the periods ending January 16, 2026, and January 30, 2026
Recommended Action: A. Adopt Resolution No. 26-019 ratifying Accounts Payable for the Period ending January 16, 2026; and
B. Adopt Resolution No. 26-020 ratifying Accounts Payable for the Period ending January 30, 2026

4. Subject: Appointment of the Sustainability Commission, Technology, Information, and Communications Commission, and Planning Commission recommendations as representatives to the Economic Development Committee
Recommended Action: Accept the following Commission recommendations to appoint representatives to the Economic Development Committee:

1. Accept the Technology, Information, and Communications Commission’s recommendation to appoint Balaram Donthi for a term expiring January 30, 2027.

2. Accept the Sustainability Commission’s recommendation to appoint Jack Carter for a term expiring January 30, 2027.

3. Accept the Planning Commission’s recommendation to appoint Tracy Kosolcharoen for a term expiring January 30, 2027.

5. Subject: Consider designation of the following positions as appointees to the PLAN JPA Board of Directors: Senior Assistant City Attorney, Board Member; and Senior Management Analyst, Board Alternate.

Recommended Action: Adopt Resolution No. 26-021 appointing the following positions to the PLAN JPA Board of Directors: Senior Assistant City Attorney, Board Member; and Senior Management Analyst, Board Alternate.

PUBLIC HEARINGS - None

ACTION CALENDAR

6. Subject: Consider (1) adopting Resolution No. 26-022 to repeal and replace Resolution No. 23-026 regarding the Legislative Review Committee (LRC), (2) adopting the 2026 Legislative Platform, and (3), amending the 2026 Council Committee Assignments to designate Vice Mayor Liang Chao and Councilmember R "Ray" Wang to the LRC, with Mayor Kitty Moore as an alternate.

Recommended Action: 1. Adopt Resolution No. 26-022 to repeal and replace Resolution No. 23-026, regarding the Legislative Review Committee

2. Adopt the 2026 Legislative Platform

3. Amend the 2026 Council Committee Assignments to designate Vice Mayor Liang Chao and Councilmember R “Ray” Wang to the LRC, with Mayor Kitty Moore as an alternate.

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Written communications for this item included a staff presentation.

Senior Management Analyst Astrid Robles gave a presentation.

Councilmembers asked questions and made comments.

Mayor Moore opened the public hearing and the following members of the public spoke:

Jennifer Griffin
Planning Commissioner, Santosh Rao, representing self (virtually) Peggy Griffin (virtually)

Councilmembers asked questions and made comments.

Mayor Moore closed the public hearing.

MOTION: Chao moved and Wang seconded to approve the staff recommendation, as amended:

1. Adopt Resolution No. 26-022 to repeal and replace Resolution No. 23-026, regarding the Legislative Review Committee.

2. Adopt the 2026 Legislative Platform.

3. Amend the 2026 Council Committee Assignments to designate Vice Mayor Liang Chao and Councilmember R “Ray” Wang to the LRC, with Mayor Kitty Moore as an alternate.

FRIENDLY AMENDMENT: Chao made a friendly amendment to:

1. Add a local authority section, similar to the one in the federal priorities, into the state legislative priorities table;

2. Add an item to monitor housing element process and RHNA area calculation, and

3. Add Proposition 36 funding description.
(Wang accepted the friendly amendment)
The amended motion passed with the following vote: Ayes: Moore, Chao, Mohan and Wang. Noes: Fruen. Abstain: None. Absent: None.

At 7:56 p.m., Mayor Moore recessed the meeting. The meeting reconvened at 8:02 p.m. with all Councilmembers present (Wang virtually).

7. Subject: Consider Potential November 2026 Revenue Ballot Measure.

Recommended Action: Receive information regarding potential revenue ballot measure options and provide direction on pursuing placement of a measure on the November 2026 ballot.
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Written communications for this item included a staff presentation.

Acting Director of Administrative Services Jonathan Orozco introduced the item.

Senior Analyst Ken Duran representing HdL gave a presentation.

Councilmembers asked questions and made comments.

Mayor Moore opened the public hearing and the following members of the public spoke:

Planning Commissioner, Santosh Rao, representing self (virtually)

Councilmembers asked questions and made comments.

Mayor Moore closed the public hearing.

MOTION: Moore moved and Chao seconded to continue this item to March 17, 2026 for further analysis of business tax, UUT , and sales tax options; look into reductions to CIP budget and staffing; and enhance Cupertino's business competitiveness. The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan and Wang. Noes:

None. Abstain: None. Absent: None.

8. Subject: Parkland Ballot Measure - Mapping, Zoning, Legal Review, and Election Considerations
Recommended Action: Receive the report and provide direction to staff on whether to pursue development of a parkland rezoning ballot measure for consideration at the November 2026 election.

Written communications for this item included emails to Council.

At 9:14 p.m., Mayor Moore recessed the meeting due to technical/computer difficulties. The meeting reconvened at 9:48 p.m. with all Councilmembers present (Wang absent).

MOTION: Moore moved and Fruen seconded to continue the meeting to March 3, 2026 due to technical/computer difficulties. The motion passed with the following vote: Ayes: Moore, Chao, Fruen, and Mohan. Noes: None. Abstain: None. Absent: Wang.

This item was continued to March 3, 2026.

STUDY SESSION
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9. Subject: An update on the development of the Active Transportation Plan, including a summary of Phase 2, explanations of plan edits, revised scoring criteria, and next steps.

Recommended Action: Receive an update on the development of the Active Transportation Plan and provide feedback on the agenda packet attachments.

Written communications for this item included a staff presentation , desk item, and emails to Council.

This item was continued to March 3, 2026.

ITEMS REMOVED FROM THE CONSENT CALENDAR – None

CITY MANAGER REPORT

10. Subject: City Manager Report

City Manager Tina Kapoor reported on recent highlights and upcoming events as provided in the published agenda.

ORAL COMMUNICATIONS - CONTINUED – None

COUNCILMEMBER REPORTS

11. Subject: Councilmember Reports

Councilmembers reported on their various committees and events as provided in the published agenda.

FUTURE AGENDA ITEMS

12. Subject: Upcoming Draft Agenda Items Report

A tentative council meeting agenda calendar was provided in the published agenda.

ADJOURNMENT

At 9:49 p.m., Mayor Kitty Moore adjourned the Regular City Council Meeting.

Minutes prepared by:

________________________________
Lauren Sapudar, Acting City Clerk

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CITY OF CUPERTINO
Agenda Item
25-14425 Agenda Date: 3/3/2026
Agenda #: 5.

Subject: Receive the Monthly Treasurer's Report for January 2026.

Receive the Monthly Treasurer's Report for January 2026.

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ADMINISTRATIVE SERVICES DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
1 CITY COUNCIL STAFF REPORT
Date: March 3, 2026

Subject
Receive the Monthly Treasurer's Report for January 2026

Recommended Action
Receive the Monthly Treasurer's Report for January 2026

Reasons for Recommendation
Background
California Government Code Section 41004 states:

Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.

The city treasurer shall file a copy with the legislative body.

The City's Municipal Code Section 2.24.030 Monthly Reports states:

The Treasurer shall make monthly reports which conform to the requirements of Government Code Section 41004. Said reports shall be delivered to the City Council, the City Manager and made available for review by such other persons who may so request.

The Treasurer's Report (report and accounting of all receipts, disbursements, and fund balances) is made available to City Council in compliance with the aforementioned requirements.

Cash vs. Accrual Basis Accounting
Cash basis accounting and accrual basis accounting differ in the way revenues and expenses are recognized and recorded, primarily with regard to their timing.

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2 recognizes revenues when they are earned (but not necessarily received) and expenses when they are incurred (but not necessarily paid). This method of accounting recognizes transactions as they occur, regardless of whether cash has been exchanged.

Receipts, disbursements, and cash balance are measured on a cash basis. The cash balance shows the total cash and investments in the City 's accounts. The ending balance is the beginning balance plus receipts minus disbursements . Journal adjustments generally include transactions recorded in other systems and imported into New World, Council- approved budget adjustments, quarterly Cost Allocation Plan (CAP) charges, and quarterly interest earnings.

Revenues, expenditures, and fund balance are measured on an accrual basis. As a result, the amount in fund balance does not mean the City has that much cash on hand. Instead, fund balance is the difference between assets and liabilities. The ending balance is the beginning balance plus revenues minus expenditures.

Treasurer's Report
The report provides an update on the City's cash and fund balances for January 2026. The report is as of February 19, 2026.

Note: Beginning balances have been updated to account for any final adjustments made as part of the month -end close that could not be completed before the prior report’s preparation. These adjustments were necessary due to time constraints associated with completing the month-end close process and generating the report.

Receipts, Disbursements, and Cash Balance
The City's General Fund ending cash and investment balance was $ 206.7 million, increasing by $ 8.0 million from the prior month. Receipts were $ 12.2 million, disbursements were $(4.2) million, and journal adjustments were $ 0.1 million for the month.

The City's total ending cash and investment balance was $314.9 million, increasing by $7.1 million from the prior month. Receipts were $12.6 million, disbursements were $(6.2 ) million, and journal adjustments were $0.6 million for the month.

Journal adjustments included the following:
• Parks and Recreation transactions imported from Active Network into New World
• Worker’s Compensation journals
• LAIF investment transfer
• Investment Earnings
• Bank Fees
• City Hall Improvement Project

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3 Fund Balance/Net Position
The City's General Fund ending fund balance was $ 143.7 million, increasing by $ 2.9 million from the prior month due to revenues of $ 15.4 million and expenditures of $12.5 million.

The City's total ending fund balance was $244.4 million, increasing by $6.3 million from the prior month due to revenues of $20.3 million and expenditures of $14.0 million.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

California Environmental Quality Act
Not applicable.
_____________________________________

Prepared by: __________________
Jonathan Orozco
Acting Director of Administrative Services and City Treasurer

Approved for Submission by: __________________
Tina Kapoor
Interim City Manager

Attachments:

A – Report of City-wide Receipts, Disbursements, and Cash Balances January 2026 B – R
eport of City-wi
de Fund Balances/Net Position January 2026

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January 2026 Report of City‐wide Receipts, Disbursements, and Cash Balances Cash and Investments (Unaudited)
Beginning Balance   Ending Balance
Fund Type Fund Number/Name as of December 31, 2025 Receipts Disbursements Journal  Adjustments as  of January 31, 2026 General Fund 100  General Fund 198,651,813                                     12,164,627              (4,242,626)                 120,630                                206,694,444 General Fund 130  Investment Fund 0                                                       ‐                               ‐                                 432,049                                432,049 Special Revenue Funds 210  Storm Drain Improvement 150,901                                            ‐                               ‐                                 1                                           150,903 Special Revenue Funds 215  Storm Drain AB1600 2,313,041                                         5,279                       ‐                                 23                                         2,318,343 Special Revenue Funds 230  Env Mgmt Cln Crk Strm Drain 255,286                                            ‐                               (108,165)                    6                                           147,128 Special Revenue Funds 260  CDBG 548,572                                            122                          (5,665)                        8                                           543,037 Special Revenue Funds 261  HCD Loan Rehab 230,372                                            ‐                               ‐                                 ‐                                           230,372 Special Revenue Funds 265  BMR Housing 4,926,432                                         350                          (84,798)                      50                                         4,842,034 Special Revenue Funds 270  Transportation Fund 14,281,952                                       293,352                   (259,138)                    (205,885)                              14,110,280 Special Revenue Funds 271  Traffic  Impact 928,399                                             6,797                       ‐                                 9                                           935,205 Special Revenue Funds 280  Park Dedication 21,127,361                                       15,000                     ‐                                 208                                       21,142,569 Special Revenue Funds 281  Tree Fund 76,038                                              ‐                               ‐                                 1                                           76,038 Debt Service Funds 365  Public Facilities Corp 2,436,800                                         ‐                               (239,800)                    ‐                                           2,197,000 Capital Project Funds 420  Capital Improvement Fund 34,304,152                                       ‐                               (43,912)                      61,348                                  34,321,589 Capital Project Funds 427  Stevens Creek Corridor Park 157,338                                            ‐                               ‐                                 ‐                                           157,338 Capital Project Funds 429  Capital Reserve* 7,142,250                                         ‐                               ‐                                 ‐                                           7,142,250 Enterprise Funds 520  Resource Recovery 4,869,881                                         140,397                   (173,968)                    51                                         4,836,361 Enterprise Funds 560  Blackberry Farm 941,956                                            ‐                               (47,221)                      52,522                                  947,257 Enterprise Funds 570  Sports Center 1,574,852                                         ‐                               (118,476)                    66,839                                  1,523,215 Enterprise Funds 580  Recreation Program 3,028,270                                         7,055                       (90,172)                      107,225                                3,052,378 Internal Service Funds 610  Innovation & Technology 3,244,439                                         106                          (348,127)                    30                                         2,896,448 Internal Service Funds 620  Workers ʹ Compensation 3,958,170                                         ‐                               (5,539)                        (27,594)                                3,925,037 Internal Service Funds 630  Vehicle/Equip Replacement 1,206,591                                         ‐                               (247,320)                    12                                         959,283 Internal Service Funds 641  Compensated Absence/LTD 427,291                                            ‐                               335                             5                                           427,631 Internal Service Funds 642  Retiree Medical 1,060,028                                         ‐                               (149,821)                    13                                         910,220 Total 307,842,186$                                   12,633,085$            (6,164,412)$               607,551$                              314,918,410$ * For reporting purposes, this fund rolls up/combines with Fund 420 Printed February 23, 2026
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January 2026 Report of City‐wide Fund Balances/Net Position (Unaudited)
Beginning Fund Balance Ending Fund Balance
Fund Type Fund Number/Name as of December 31, 2025 Revenues Expenditures as of January 31, 2026 General Fund 100  General Fund 140,813,228                                      15,376,677                         12,524,592                         143,665,313 General Fund 130  Investment Fund (473,494)                                            643,830                               ‐                                           170,336 Special Revenue Funds 210  Storm Drain Improvement 2,123,873                                          395                                      ‐                                           2,124,268 Special Revenue Funds 215  Storm Drain AB1600 1,888,096                                          10,816                                 ‐                                           1,898,912 Special Revenue Funds 230  Env  Mgmt Cln Crk Strm Drain 960,740                                             839,704                               98,658                                 1,701,786 Special Revenue Funds 260  CDBG 1,675,014                                          30,321                                 38,808                                 1,666,528 Special Revenue Funds 261  HCD Loan Rehab 222,016                                             ‐                                           ‐                                           222,016 Special Revenue Funds 265  BMR Housing 9,574,877                                          12,899                                 20,869                                 9,566,907 Special Revenue Funds 270  Transportation Fund 9,734,863                                          288,483                               147,069                               9,876,277 Special Revenue Funds 271  Traffic Impact 774,656                                             2,431                                   ‐                                           777,087 Special Revenue Funds 280  Park Dedication 18,818,906                                        100,281                               ‐                                           18,919,186 Special Revenue Funds 281  Tree Fund 79,680                                               1,274                                   ‐                                           80,954 Debt Service Funds 365  Public Facilities Corp 1,750                                                 ‐                                           ‐                                           1,750 Capital Project Funds 420  Capital Improvement Fund 20,248,943                                        2,500,000                            93,017                                 22,655,926 Capital Project Funds 427  Stevens Creek Corridor Park 157,343                                             ‐                                           ‐                                           157,343 Capital Project Funds 429  Capital Reserve* 13,744,638                                        ‐                                           ‐                                           13,744,638 Enterprise Funds 520  Resource Recovery 4,617,647                                          153,149                               129,407                               4,641,388 Enterprise Funds 560  Blackberry Farm 702,523                                             55,253                                  116,133                               641,643 Enterprise Funds 570  Sports Center 1,768,682                                          161,362                               128,441                               1,801,603 Enterprise Funds 580  Recreation Program 2,755,810                                          114,718                               68,175                                 2,802,353 Internal Service Funds 610  Innovation & Technology 2,373,462                                          8,495                                   364,094                               2,017,864 Internal Service Funds 620  Workersʹ Compensation 2,274,058                                          10,321                                 10,446                                 2,273,934 Internal Service Funds 630  Vehicle/Equip Replacement 2,757,545                                          3,162                                   56,503                                 2,704,204 Internal Service Funds 641  Compensated Absence/LTD 652,965                                             1,128                                   8,375                                   645,717 Internal Service Funds 642  Retiree Medical (147,371)                                            2,776                                   170,325                               (314,920) Total 238,100,451$                                     20,317,475$                       13,974,911$                       244,443,015$ * For reporting purposes, this fund rolls up/combines with Fund 420 Printed February 23, 2026
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CITY OF CUPERTINO
Agenda Item
25-14426 Agenda Date: 3/3/2026
Agenda #: 6.

Subject: Receive the Monthly Treasurer's Investment Report for January 2026.

Receive the Monthly Treasurer's Investment Report for January 2026.

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ADMINISTRATIVE SERVICES DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
1 CITY COUNCIL STAFF REPORT
Date: March 3, 2026

Subject
Receive the Monthly Treasurer's Investment Report for January 2026

Recommended Action
Receive the Monthly Treasurer's Investment Report for January 2026

Reasons for Recommendation
The Monthly Investment Report is a routine report provided to City Council and is provided as Attachment A with this report.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

City Work Program Item/Description
None.

Council Goal
Fiscal Strategy

California Environmental Quality Act
Not applicable.
_____________________________________

Prepared by: Jonathan Orozco, Acting Director of Administrative Services and City Treasurer
Approved for Submission by: Tina Kapoor, City Manager

Attachments:

A – Chandler Investment Report January 2026
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INVESTMENT REPORT
City of Cupertino | As of January 31, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
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TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

PORTFOLIO HOLDINGS

TRANSACTIONS
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ECONOMIC UPDATE
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▪
▪
▪
Recent economic data has signaled moderating inflation alongside a continued rebalancing in labor market conditions. Price pressures continues to run modestly above the Federal Reserve’s longer‑run objective, while the unemployment rate dropped to 4.4%. As the data flow normalizes, the Chandler team anticipates additional yield curve steepening as the Federal Reserve gradually guides the policy rate toward a more neutral range. One additional 25 basis point rate cut may come in the first half of 2026, while U.S. trade and fiscal policy continue to represent important sources of elevated market uncertainty.

The Federal Reserve’s January Federal Open Market Committee meeting concluded with policymakers leaving the target range unchanged at 3.50%–3.75% after three consecutive 25‑basis ‑point cuts at the end of 2025. However, officials remain divided on the appropriate path forward, with Governors Christopher Waller and Stephen Miran dissentingin favor of an additional reduction. The future policy regime also began to take shape as President Trump announced Kevin Warsh as his nominee for the next Federal Reserve Chair.

The US Treasury yield curve steepened in January, as the 2-year Treasury yield rose 4 basis points to 3.52%, the 5-year Treasury was up 6 basis points to 3.79%, and the 10-year Treasury yield was 7 basis points higher at 4.24%. The spread between the 2-year and 10-year Treasury yield points on the curve was 2 basis points wider from December at +71 basis points at January month-end. The spread between the 2-year Treasury and 10-year Treasury yield one year ago was +56 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +58 basis points in January versus +54 basis points in December.

ECONOMIC UPDATE
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-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The December Nonfarm Payrolls report showed weaker-than-expected job growth, with payrolls rising by 50,000 compared with the consensus estimate of 70,000. This follows a downwardly revised gain of 56,000 in November. Employment declines were most pronounced in retail trade and construction, while leisure and hospitality posted the strongest gains. Notably, the unemployment rate edged down to 4.4% after increasing to 4.6% in November.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
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0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) reported that job openings fell to 7.1 million in November from a downwardly revised 7.4 millionin October. The dropin vacancies, alongside slower hiring, suggests the labor market continues to soften, though employers remain cautious about laying off workers. The number of openings now roughly matches the number of unemployed individuals, pointing to a labor market that is approaching equilibrium.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
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0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator
YOY % Change
PCE Core Deflator
YOY % Change
Fed Target
YOY (%) Change
The Consumer Price Index (CPI) showed that inflation remained relatively subduedin December, with headline CPI and core CPI holding at

2.7% and 2.6% respectively year-over-year. Shelter has continued to play a central but gradually moderating role in services inflation.

December data keeps inflation close to the prior month’s pace and consistent with a trend of easing price pressures. The Personal Consumption Expenditures (PCE) Index for October and November, released on January 22, showed headline inflation up 0.2% for both months reflecting increase in both services and goods. Annual PCE Inflation increased 2.7% in October and 2.8% in November. Month-over- month, Core PCE rose 0.2% in both months; year-over-over Core PCE increased 2.7% followed by an increase of 2.8%.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
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0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
November Retail Sales rose 0.6% from October and 3.3% from a year earlier, while the control group measure which feeds into GDP rose a solid 0.4% on the month after an even stronger 0.8% gain in October. This confirms that underlying goods spending excluding the most volatile categories remained resilient into the start of the holiday season. The government shutdown may have weighed on consumer confidence regarding jobs, incomes, and overall financial conditions, both current and in the future. The Conference Board’s Consumer Confidence Index declined by 9.7 points to 84.5 in January from an upwardly revised 94.2 in December, sinking to its lowest level since 2014 and resuming the downtrend after a brief year‑end uptick. Consumers grew more pessimistic about both current and future business conditions and the labor market.
0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
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-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) declined 0.3% in November, marking its fourth consecutive monthly decrease after a revised 0.1% drop in October. On a year-over-year basis, the index fell 3.7%. According to the Conference Board, weak expectations among consumers led to the decline in LEI, followed by new orders. Despite strong GDP in the third quarter of 2025, the LEI continues to signal slower economic growth into 2026. The Chicago Fed National Activity Index (CFNAI) registered –0.04 in November, improving from –0.42 in October, but still signaling that U.S. economic activity remained slightly below its historical trend. The three ‑month moving average increased to –0.23 in November from –0.34 in October, indicating that underlying growth has firmed but continues to run modestly below trend. Employment ‑related indicators were negative in both November and October, pointing to a labor market that remains a mild drag on overall activity even as conditions have steadied relative to earlier in the year.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
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0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
The S&P Cotality Case-Shiller 20-City Composite Home Price Index rose 1.4% year-over-year in November remaining near the slowest annual increase since mid ‑2023. Short‑term momentum softened further, with 15 of the 20 tracked markets posting month‑over‑month price declines on a non‑seasonally adjusted basis as higher mortgage rates and stretched affordability continued to weigh on demand.

Housing starts declined in October to an annualized rate of 1.25 million units adding 875 thousand single-family home starts and 372 thousand multifamily home starts. The Freddie Mac 30‑year fixed mortgage rate continued to trend lower at 6.10% at the end of January.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
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40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
The Institute for Supply Management’s (ISM) manufacturing index slipped to 47.9 in December, down from 48.2 in November, marking continued weakness across the sector. Manufacturing activity has now been in contraction for 36 of the past 38 months, as readings below 50 indicate contraction and those above50 signal expansion. The latest decline was driven primarily by pullbacks in the Production and Inventories components. In contrast, the ISM services index remained in expansion territory, rising to 54.4 in December from 52.6 in November. Respondents attributed the improvementto seasonal strength, though many remained cautious about the potential impact of tariffs.

Source: Institute for Supply Management

SURVEY BASED MEASURES
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Components of GDP 12/24 3/25 6/25 9/25

2.6% 0.4% 1.7% 2.3%
-1.3% 3.8% -2.7% 0.0%
-0.1% -4.7% 4.8% 1.6%

0.3% -0.4% -0.4% 0.2%

0.3% 0.2% 0.3% 0.2%

1.9% -0.6% 3.8% 4.4%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product (GDP) demonstrated continued strength in the third quarter, with the third estimate showing a 4.4% annualized quarter-over-quarter increase, up from 3.8% in the second quarter. Consumer spending accelerated, alongside of upturns in investment, exports, and government spending. The stronger-than-expected result represented the fastest pace of U.S. economic expansion in two years. The consensus projection calls for 1.1% growth in the fourth quarter and 2.0% growth for the full year 2025.

GROSS DOMESTIC PRODUCT (GDP)
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Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Reserve left its benchmark interest rate unchanged in January, keeping the target range at 3.50% to 3.75% after the December quarter‑point cut that was justified by signs of softening in the labor market. Policymakers maintained a cautious tone, acknowledging that inflation has continued to moderatebut emphasizing that the outlook remains uncertain and that future adjustments will depend on incoming data. The Committee also reaffirmed its December decision to halt balance sheet runoff and to reinvest principal and interest payments from its securities holdings, signaling a desire to maintain ample reserves and support orderly market functioning while it assesses the effects of earlier tightening and recent rate cuts.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
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Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Yield Curve
Jan-26
Oct-25
Jan-25
Yield (%)
At the end of January, the 2-year yield was 8 basis points lower, and the 10-year yield was 7 basis points higher, year-over-year. The spread between the 2-year and 10-year Treasury yield pointson the curve increased to +71 basis points at January month-end versus +69 basis points at December month-end. The prior 2-year/10-year yield curve inversion, which spanned from July 2022 to August 2024, was historically long. The average historical spread (since 2005) is about +95 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was +58 basis points in January versus +54 basis points in December.

BOND YIELDS
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ACCOUNT PROFILE
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OBJECTIVES
Investment Objectives
The City of Cupertino's investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed incomes securities consistent with the investment policy and California Government Code. 15 81
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of January 31, 2026 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max % (MV) 100.0 11.5 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 25.0 11.5 Compliant Max Maturity (Years) 5.0 4.4 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 7.9 Compliant
Max % Issuer (MV) 5.0 0.8 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-

NEGOTIABLE CD/TD)
Max % (MV; FDIC & Collateralized CD/TD) 30.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 25.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of January 31, 2026 Rules Name Limit Actual Compliance
Status Notes
Max % (MV) 30.0 27.0 Compliant
Max % Issuer (MV) 5.0 1.3 Compliant
Max Maturity (Years) 5 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV; FDIC & Collateralized CD/TD) 30.0 0.0 Compliant Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 3.5 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 25.0 11.5 Compliant Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 1 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 1.3 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE -BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 0.9 Compliant
Max % Issuer (MV) 5.0 0.9 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of January 31, 2026 Rules Name Limit Actual Compliance
Status Notes
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max % (MV) 10.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 2.9 Compliant
Max % Issuer (MV) 10.0 1.7 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 44.1 Compliant
Max Maturity (Years) 5 4 Compliant
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PORTFOLIO SUMMARY
Sector Allocation
Performance Review
Total Rate of Return** 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (02/01/19)
City of Cupertino 0.24% 1.01% 0.24% 5.76% 5.00% 4.67% 1.75% -- 2.41% Benchmark Return 0.16% 0.90% 0.16% 5.39% 4.41% 4.22% 1.41% -- 2.15% City of Cupertino | Account #10659 | As of January 31, 2026 Portfolio Characteristics Account Summary
Maturity Distribution
Top Issuers
Credit Quality*
Average Modified Duration 2.62
Average Coupon 3.76%
Average Purchase YTM 4.03%
Average Market YTM 3.80%
Average Credit Quality* AA+
Average Final Maturity 3.05
Average Life 2.87
End Values as
of 12/31/2025
End Values as
of 01/31/2026
Market Value 205,668,734.88 206,174,722.48
Accrued Interest 1,621,951.12 1,600,582.56
Total Market Value 207,290,686.00 207,775,305.04
Income Earned 695,391.72 438,034.24
Cont/WD 0.00 0.00
Par 205,673,731.74 206,274,386.28
Book Value 204,078,590.52 204,717,752.76
Cost Value 203,529,920.42 204,173,834.30
United States 44.12%
Federal Home Loan Mortgage Corp 11.54%
Farm Credit System 2.56%
International Bank for Recon and Dev 1.69%
Morgan Stanley 1.67%
Guardian Life Global Funding 1.31%
Wells Fargo & Company 1.29%
The Home Depot, Inc. 1.28%
*The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. **Periods over 1 year are annualized.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 19 85
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HISTORICAL AVERAGE PURCHASE YIELD
City of Cupertino | Account #10659 | As of January 31, 2026 Purchase Yield as of 01/31/26 = 4.03%
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PORTFOLIO HOLDINGS
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ISSUERS
City of Cupertino | Account #10659 | As of January 31, 2026 Issuer Investment Type % Portfolio
United States US Treasury 44.12%
Federal Home Loan Mortgage Corp Agency CMBS 11.54%
Farm Credit System Agency 2.56%
International Bank for Recon and Dev Supras 1.69%
Morgan Stanley Corporate 1.67%
Guardian Life Global Funding Corporate 1.31%
Wells Fargo & Company Money Mkt Fd 1.29%
The Home Depot, Inc. Corporate 1.28%
Toyota Motor Corporation Corporate 1.24%
Deere & Company Corporate 1.20%
Inter-American Development Bank Supras 1.19%
Meta Platforms, Inc. Corporate 1.17%
New York Life Insurance Company Corporate 1.17%
Royal Bank of Canada Corporate 1.00%
Northwestern Mutual Global Funding Corporate 0.99%
UnitedHealth Group Incorporated Corporate 0.93%
Federal Home Loan Banks Agency 0.92%
PACCAR Inc Corporate 0.91%
Simon Property Group, Inc. Corporate 0.91%
Chubb Limited Corporate 0.87%
State of California Muni Bonds 0.86%
American Honda Finance Corporation Corporate 0.86%
Cash Cash 0.85%
Pricoa Global Funding I Corporate 0.85%
Chase Issuance Trust ABS 0.83%
Bank of America Credit Card Trust ABS 0.80%
Mercedes-Benz Auto Lease Trust ABS 0.78%
Berkshire Hathaway Inc. Corporate 0.77%
PepsiCo, Inc. Corporate 0.74%
Citigroup Inc ABS 0.74%
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ISSUERS
City of Cupertino | Account #10659 | As of January 31, 2026 Issuer Investment Type % Portfolio
Prologis, Inc. Corporate 0.73%
Bank of America Corporation Corporate 0.73%
JPMorgan Chase & Co. Corporate 0.73%
The Progressive Corporation Corporate 0.73%
Realty Income Corporation Corporate 0.71%
American Express Credit Master Trust ABS 0.70%
Marsh & McLennan Companies, Inc. Corporate 0.69%
WF Card Issuance Trust ABS 0.67%
Met Tower Global Funding Corporate 0.63%
Caterpillar Inc. Corporate 0.60%
Hyundai Auto Lease Securitization Tr ABS 0.55%
Cargill, Incorporated Corporate 0.53%
BMW Vehicle Lease Trust ABS 0.51%
National Rural Utilities Cooperative Corporate 0.50%
The Goldman Sachs Group, Inc. Corporate 0.50%
Honda Auto Receivables Owner Trust ABS 0.50%
GM Financial Securitized Term ABS 0.49%
Massachusetts Mutual Life Insurance Corporate 0.49%
Pacific Mutual Holding Company Corporate 0.49%
Mastercard Incorporated Corporate 0.47%
The Charles Schwab Corporation Corporate 0.46%
Toyota Auto Receivables Owner Trust ABS 0.36%
John Deere Owner Trust ABS 0.35%
Mercedes-Benz Auto Receivables Trust ABS 0.33%
BMW Vehicle Owner Trust ABS 0.31%
Walmart Inc. Corporate 0.17%
WC MMF Sweep Money Mkt Fd 0.03%
TOTAL 100.00%
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
47800AAC4 JDOT 2022-B A3 3.74 02/16/2027 51,477.88 07/12/2022

3.77%
51,472.97
51,476.80

99.99 3.91%
51,470.73

85.57 0.02%
(6.07)
Aaa/NA
AAA

1.04 0.10
44934FAD7 HALST 2024-B A3 5.41 05/17/2027 502,715.63 05/14/2024

5.41%
502,701.65
502,709.60
100.46

4.08%
505,012.04
1,208.75

0.24%
2,302.43
NA/AAA
AAA

1.29 0.33
47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 195,168.20 10/12/2022

5.15%
195,153.05
195,163.81
100.20

4.26%
195,564.39
441.51

0.09%
400.58
Aaa/NA
AAA

1.37 0.22
89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 745,625.29 11/21/2023

5.65%
742,596.19
744,105.09
100.63

3.82%
750,354.05
1,709.97

0.36%
6,248.97
NA/AAA
AAA

2.21 0.46
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 526,551.79 --

5.64%
527,855.20
527,101.36
101.06

3.94%
532,159.04
829.32

0.26%
5,057.68
Aaa/NA
AAA

2.39 0.57
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 1,050,000.00 10/08/2025

4.32%
1,049,997.06
1,049,997.36
100.18

3.87%
1,051,894.20
694.75

0.51%
1,896.84
NA/AAA
AAA

2.65 1.31
58769FAC9 MBART 2023-2 A3 5.95
11/15/2028 679,756.08 11/29/2023

3.88%
694,147.79
686,294.12
101.28

3.67%
688,463.76
1,797.58

0.33%
2,169.64
NA/AAA
AAA

2.79 0.54
47800RAD5 JDOT 2024 A3 4.96 11/15/2028 468,509.50 03/25/2024

5.13%
468,289.89
468,377.52
100.85

4.10%
472,468.40
1,032.80

0.23%
4,090.88
Aaa/NA
AAA

2.79 0.92
05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 850,000.00 01/24/2024

4.58%
858,798.83
852,472.10
100.97

3.75%
858,262.85
1,881.33

0.42%
5,790.75
Aaa/NA
AAA

0.79 0.76
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 485,931.17 05/14/2024

5.27%
485,872.13
485,894.43
101.06

3.84%
491,097.10
924.75

0.24%
5,202.67
NA/AAA
AAA

2.80 0.71
448970AD5 HALST 26A A3 3.97 12/15/2028 635,000.00 01/12/2026

3.98%
634,906.91
634,907.88
100.21

3.89%
636,327.15
700.26

0.31%
1,419.27
NA/AAA
AAA

2.87 1.81
36268GAD7 GMCAR 2024-1 A3 4.85
12/18/2028 1,003,885.55 --

4.97%
1,002,293.63
1,002,900.19
100.65

3.73%
1,010,436.91
2,028.69

0.49%
7,536.72
Aaa/NA
AAA

2.88 0.56
161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024

4.61%
1,689,742.61
1,689,846.59
100.82

3.75%
1,703,898.56
3,455.11

0.83%
14,051.97
NA/AAA
AAA

2.96 0.92
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 635,663.84 06/04/2024

5.18%
635,567.28
635,600.95
100.91

3.73%
641,425.50
548.79

0.31%
5,824.55
Aaa/AAA
NA

3.07 0.60
58770XAD5 MBALT 2025-B A3 3.88
04/16/2029 1,045,000.00 10/16/2025

4.57%
1,044,828.52
1,044,842.27
100.11

3.85%
1,046,151.59
1,802.04

0.51%
1,309.32
NA/AAA
AAA

3.21 1.80
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 785,000.00 06/06/2024

4.93%
784,955.96
784,970.72
101.41

3.83%
796,099.12
1,720.02

0.39%
11,128.39
Aaa/AAA
NA

3.28 1.22
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
58770YAD3 MBALT 2026-A A3 3.93
01/15/2030 570,000.00 01/13/2026

3.97%
569,886.97
569,887.82
100.11

3.91%
570,600.78
622.25

0.28%
712.96
Aaa/NA
AAA

3.96 2.03
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 1,420,000.00 05/06/2025

4.28%
1,419,974.30
1,419,978.07
101.05

3.81%
1,434,867.40
2,701.16

0.70%
14,889.33
NA/AAA
AAA

4.20 2.06
92970QAJ4 WFCIT 2025-1 A 4.34 05/15/2030 1,365,000.00 06/03/2025

4.33%
1,364,977.34
1,364,980.31
101.18

3.83%
1,381,038.75
2,632.93

0.67%
16,058.44
NA/AAA
AAA

4.28 2.14
17305EHA6 CCCIT 2025-A1 A1 4.3 06/21/2030 1,500,000.00 10/09/2025

3.90%
1,515,000.00
1,513,263.96
101.03

3.84%
1,515,474.00
7,166.67

0.74%
2,210.04
Aaa/AAA
NA

4.39 2.24
16,239,018.29 100.79 16,333,066.30 7.92% 3.10
Total ABS 16,205,284.93 4.60% 16,224,770.95 3.83% 33,984.26 108,295.35 1.29 AGENCY
3130B0TY5 FEDERAL HOME LOAN BANKS 4.75
04/09/2027 1,875,000.00 04/10/2024

4.85%
1,870,050.00
1,873,043.55
101.41

3.52%
1,901,405.63
27,708.33

0.92%
28,362.08
Aa1/AA+
AA+

1.19 1.13
3133ERDS7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 05/06/2027 2,400,000.00 06/20/2024

4.55%
2,412,552.00
2,405,492.25
101.48

3.54%
2,435,479.20
26,916.67

1.18%
29,986.95
Aa1/AA+
AA+

1.26 1.21
3133EPC60 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.625 11/15/2027 2,800,000.00 11/09/2023

4.73%
2,789,612.00
2,795,364.15
101.81

3.57%
2,850,694.00
27,338.89

1.38%
55,329.85
Aa1/AA+
AA+

1.79 1.69
7,072,214.00 101.59 7,187,578.83 3.49% 1.45
Total Agency 7,075,000.00 4.70% 7,073,899.95 3.55% 81,963.89 113,678.88 1.38

AGENCY CMBS
3137BSP72 FHMS K-058 A2 2.653 08/25/2026 650,000.00 11/12/2021

1.36%
687,451.17
653,945.67

99.24 3.81%
645,067.80
1,437.04

0.31%
(8,877.87)
Aa1/AA+
AAA

0.56 0.51
3137FBBX3 FHMS K-068 A2 3.244 08/25/2027 1,000,000.00 09/28/2022

4.36%
950,664.06
984,720.69

99.18 3.69%
991,795.00
2,703.33

0.48%
7,074.31
Aaa/AA+
AA+

1.56 1.44
3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 1,941,151.70 07/01/2024

4.86%
1,857,060.41
1,887,145.24

99.76 3.80%
1,936,450.23
6,100.07

0.94%
49,304.99
Aa1/AAA
AA+

2.90 2.58
3137FL6P4 FHMS K-089 A2 3.563 01/25/2029 1,288,000.00 07/03/2024

4.70%
1,228,178.44
1,249,081.27

99.16 3.81%
1,277,180.80
3,824.29

0.62%
28,099.53
Aa1/AA+
AA+

2.99 2.75
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 2,000,000.00 07/03/2024

4.74%
1,801,718.75
1,871,002.12

95.62 3.84%
1,912,326.00
3,766.67

0.93%
41,323.88
Aa1/AA+
AAA

2.99 2.75
25 91
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 2,550,000.00 07/17/2024

4.50%
2,465,830.08
2,494,802.36

99.46 3.83%
2,536,263.15
7,841.25

1.23%
41,460.79
Aaa/AA+
AA+

2.99 2.71
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 2,500,000.00 03/20/2025

4.25%
2,431,738.28
2,446,606.70

98.88 3.85%
2,471,877.50
7,302.08

1.20%
25,270.80
Aa1/AAA
AA+

3.15 2.83
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 1,969,684.64 09/19/2024

3.82%
1,900,284.03
1,920,732.43

97.41 3.83%
1,918,640.26
4,894.67

0.93%
(2,092.16)
Aa1/AA+
AAA

3.31 2.90
3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 2,200,000.00 07/17/2024

4.47%
2,039,382.82
2,090,213.33

96.62 3.85%
2,125,664.20
5,105.83

1.03%
35,450.87
Aa1/AA+
AAA

3.40 3.08
3137FPHK4 FHMS K-098 A2 2.425 08/25/2029 1,600,000.00 09/03/2024

4.00%
1,488,375.00
1,520,365.85

95.25 3.87%
1,524,009.60
3,233.33

0.74%
3,643.75
Aa1/AA+
AAA

3.56 3.26
3137FPJG1 FHMS K-099 A2 2.595 09/25/2029 1,500,000.00 06/05/2025

4.21%
1,407,011.72
1,421,224.95

95.65 3.89%
1,434,726.00
3,243.75

0.70%
13,501.05
Aa1/AA+
AAA

3.65 3.32
3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 2,000,000.00 06/06/2025

4.37%
1,810,078.13
1,836,883.92

93.14 3.94%
1,862,864.00
3,448.33

0.90%
25,980.08
Aa1/AA+
AAA

3.98 3.72
3137FTZQ3 FHMS K-110 A2 1.477 04/25/2030 1,500,000.00 09/03/2025

3.96%
1,348,652.34
1,361,915.70

90.69 3.97%
1,360,300.50
1,846.25

0.66%
(1,615.20)
Aa1/AA+
AAA

4.23 3.87
3137FWG79 FHMS K-115 A2 1.383 06/25/2030 2,000,000.00 12/10/2025

3.99%
1,787,343.75
1,793,609.86

89.62 3.99%
1,792,378.00
2,305.00

0.87%
(1,231.86)
Aa1/AA+
AAA

4.40 4.14
23,203,768.98 96.42 23,789,543.04 11.54% 3.27
Total Agency CMBS 24,698,836.34 4.25% 23,532,250.10 3.86% 57,051.90 257,292.95 2.98 CASH
CCYUSD Payable (1,001,380.00) -- (1,001,380.00)
(1,001,380.00)

1.00 (1,001,380.00)

0.00 (0.49%)

0.00 Aaa/AAA
AAA

0.00 0.00
CCYUSD Receivable 2,754,039.44 -- 2,754,039.44
2,754,039.44

1.00 2,754,039.44

0.00 1.34%

0.00 Aaa/AAA
AAA

0.00 0.00
1,752,659.44 1.00 1,752,659.44 0.85% 0.00
Total Cash 1,752,659.44 1,752,659.44 0.00 0.00 0.00

CORPORATE
931142ER0 WALMART INC 1.05 09/17/2026 350,000.00 09/08/2021

1.09%
349,338.50
349,917.40

98.39 3.68%
344,357.30
1,367.92

0.17%
(5,560.10)
Aa2/AA
AA

0.63 0.61
26 92
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
808513BY0 CHARLES SCHWAB CORP 2.45
03/03/2027 960,000.00 03/01/2022

2.46%
959,729.90
959,937.62

98.61 3.77%
946,670.40
9,669.33

0.46%
(13,267.22)
A2/A-
A

1.08 1.05
084664CZ2 BERKSHIRE HATHAWAY FINANCE
CORP 2.3 03/15/2027 1,615,000.00 03/07/2022

2.30%
1,614,693.15
1,614,931.61

98.50 3.68%
1,590,781.46
14,032.56

0.77%
(24,150.15)
Aa2/AA
A+

1.12 1.08
24422EXZ7 JOHN DEERE CAPITAL CORP 4.65
01/07/2028 1,430,000.00 01/06/2025

4.66%
1,429,571.00
1,429,723.29
101.80

3.68%
1,455,682.80
4,433.00

0.71%
25,959.51
A1/A
A+

1.93 1.83
57636QAW4 MASTERCARD INC 4.875
03/09/2028 945,000.00 03/06/2023

4.90%
944,083.35
944,615.18
102.22

3.77%
965,949.71
18,171.56

0.47%
21,334.53
Aa3/A+
NA

2.10 1.88
61690U8E3 MORGAN STANLEY BANK NA

4.968 07/14/2028 1,950,000.00 07/17/2024

4.97%
1,950,000.00
1,950,000.00
101.30

4.26%
1,975,431.90
4,574.70

0.96%
25,431.90
Aa3/A+
AA-

2.45 1.39
69371RU20 PACCAR FINANCIAL CORP 4.0
11/07/2028 1,865,000.00 11/05/2025

4.02%
1,863,955.60
1,864,037.55
100.56

3.78%
1,875,416.03
17,406.67

0.91%
11,378.47
A1/A+
NA

2.77 2.57
58989V2M5 MET TOWER GLOBAL FUNDING

4.0 01/14/2029 1,310,000.00 01/07/2026

4.05%
1,308,310.10
1,308,337.85

99.84 4.06%
1,307,938.06
2,474.44

0.63%
(399.79)
Aa3/AA-
AA-

2.96 2.75
74340XBL4 PROLOGIS LP 4.375 02/01/2029 1,500,000.00 07/18/2024

4.68%
1,481,235.00
1,487,595.63
100.97

4.03%
1,514,523.00
32,812.50

0.73%
26,927.37
A2/A
NA

3.00 2.57
78016HZV5 ROYAL BANK OF CANADA 4.95
02/01/2029 2,000,000.00 10/31/2024

4.69%
2,019,920.00
2,014,058.16
102.75

3.97%
2,054,914.00
49,500.00

1.00%
40,855.84
A1/A
AA-

3.00 2.77
743315AV5 PROGRESSIVE CORP 4.0
03/01/2029 1,500,000.00 07/16/2024

4.72%
1,455,495.00
1,470,365.15
100.21

3.92%
1,503,207.00
25,000.00

0.73%
32,841.85
A2/A
A

3.08 2.61
64952WFG3 NEW YORK LIFE GLOBAL FUNDING

5.0 06/06/2029 1,000,000.00 07/01/2024

5.12%
994,880.00
996,526.93
102.97

4.04%
1,029,658.00
7,638.89

0.50%
33,131.07
Aa1/AA+
AAA

3.34 3.04
437076BY7 HOME DEPOT INC 2.95
06/15/2029 1,663,000.00 09/17/2024

3.93%
1,593,203.89
1,613,404.84

96.98 3.91%
1,612,855.56
6,268.59

0.78%
(549.28)
A2/A
A

3.37 3.16
437076DC3 HOME DEPOT INC 4.75
06/25/2029 1,000,000.00 07/01/2024

4.93%
992,260.00
994,723.69
102.54

3.94%
1,025,354.00
4,750.00

0.50%
30,630.31
A2/A
A

3.40 3.03
756109CB8 REALTY INCOME CORP 4.0
07/15/2029 1,463,000.00 08/08/2024

4.69%
1,419,212.41
1,432,365.71

99.76 4.08%
1,459,427.35
2,600.89

0.71%
27,061.65
A3/A-
NA

3.45 3.19
713448FX1 PEPSICO INC 4.5 07/17/2029 1,500,000.00 07/15/2024

4.53%
1,497,675.00
1,498,393.13
101.99

3.88%
1,529,796.00
2,625.00

0.74%
31,402.87
A1/A+
NA

3.46 3.11
46647PAV8 JPMORGAN CHASE & CO 4.203
07/23/2029 1,500,000.00 09/17/2024

4.27%
1,496,610.00
1,497,819.68
100.40

4.35%
1,505,935.50
1,401.00

0.73%
8,115.82
A1/A
AA-

3.47 2.33
06051GHM4 BANK OF AMERICA CORP 4.271
07/23/2029 1,500,000.00 09/17/2024

4.29%
1,498,710.00
1,499,170.32
100.47

4.39%
1,507,123.50
1,423.67

0.73%
7,953.18
A1/A-
AA-

3.47 2.33
27 93
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93 of 495

HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
30303M8S4 META PLATFORMS INC 4.3
08/15/2029 912,000.00 08/12/2024

4.33%
910,584.09
910,998.94
101.18

3.94%
922,722.38
18,082.93

0.45%
11,723.45
Aa3/AA-
NA

3.54 3.12
171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 1,750,000.00 --

4.44%
1,765,746.34
1,761,321.29
102.28

3.95%
1,789,919.25
37,522.92

0.87%
28,597.96
A2/A
A

3.54 3.10
91324PDS8 UNITEDHEALTH GROUP INC 2.875
08/15/2029 2,000,000.00 09/17/2024

3.94%
1,906,080.00
1,932,337.77

96.12 4.06%
1,922,334.00
26,513.89

0.93%
(10,003.77)
A2/A+
A

3.54 3.27
02665WFQ9 AMERICAN HONDA FINANCE
CORP 4.4 09/05/2029 1,750,000.00 10/02/2024

4.29%
1,758,102.50
1,755,912.39
100.92

4.12%
1,766,135.00
31,227.78

0.86%
10,222.61
A3/A-
NA

3.59 3.24
40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING

4.179 09/26/2029 1,205,000.00 09/23/2024

4.18%
1,205,000.00
1,205,000.00
100.10

4.15%
1,206,239.95
17,485.05

0.59%
1,239.95
Aa1/AA+
NA

3.65 3.31
61748UAK8 MORGAN STANLEY 4.133
10/18/2029 1,470,000.00 10/17/2025

4.25%
1,470,184.60
1,470,167.36

99.92 4.27%
1,468,881.33
16,707.65

0.71%
(1,286.03)
A1/A-
A+

3.71 2.51
38141GD27 GOLDMAN SACHS GROUP INC

4.153 10/21/2029 1,025,000.00 10/14/2025

4.37%
1,025,000.00
1,025,000.00

99.95 4.27%
1,024,438.30
11,824.51

0.50%
(561.70)
A2/BBB+
A

3.72 2.52
14913UAU4 CATERPILLAR FINANCIAL SERVICES
CORP 4.7 11/15/2029 1,200,000.00 11/14/2024

4.74%
1,198,092.00
1,198,554.89
102.58

3.96%
1,230,979.20
11,906.67

0.60%
32,424.31
A2/A
A+

3.79 3.42
64952WFK4 NEW YORK LIFE GLOBAL FUNDING

4.6 12/05/2029 1,365,000.00 12/02/2024

4.61%
1,364,221.95
1,364,402.19
101.68

4.12%
1,387,959.30
9,767.33

0.67%
23,557.11
Aa1/AA+
AAA

3.84 3.47
89236TNA9 TOYOTA MOTOR CREDIT CORP

4.95 01/09/2030 1,445,000.00 01/06/2025

5.00%
1,441,907.70
1,442,564.77
103.00

4.12%
1,488,341.33
4,371.13

0.72%
45,776.56
A1/A+
A+

3.94 3.55
63743HFX5

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
1,000,000.00 02/05/2025

4.88%
1,002,873.61
1,002,298.89
102.73

4.20%
1,027,293.00
23,925.00

0.50%
24,994.11
A2/NA
A

4.02 3.47
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 1,400,000.00 03/11/2025

4.69%
1,397,340.00
1,397,808.13
101.80

4.17%
1,425,200.00
24,593.33

0.69%
27,391.88
A3/A-
A-

4.12 3.59
57629TBX4 MASSMUTUAL GLOBAL FUNDING
II 4.55 05/07/2030 1,000,000.00 05/01/2025

4.58%
998,670.00
998,866.66
100.82

4.33%
1,008,239.00
10,616.67

0.49%
9,372.34
Aa3/AA+
AA+

4.26 3.80
66815L2W8 NORTHWESTERN MUTUAL
GLOBAL FUNDING 4.6 06/03/2030 1,000,000.00 06/12/2025

4.51%
1,004,040.00
1,003,521.65
101.37

4.25%
1,013,670.00
7,411.11

0.49%
10,148.35
Aa1/AA+
AAA

4.34 3.87
828807DK0 SIMON PROPERTY GROUP LP 2.65
07/15/2030 2,000,000.00 08/19/2025

4.32%
1,853,380.00
1,866,895.25

93.70 4.22%
1,874,080.00
2,355.56

0.91%
7,184.75
A3/A
NA

4.45 4.13
40139LBN2 GUARDIAN LIFE GLOBAL FUNDING

4.327 10/06/2030 1,500,000.00 09/30/2025

4.33%
1,500,000.00
1,500,000.00
100.02

4.32%
1,500,255.00
20,733.54

0.73%
255.00
Aa1/AA+
NA

4.68 4.14
28 94
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94 of 495

HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
24422EYF0 JOHN DEERE CAPITAL CORP 4.375
10/15/2030 1,000,000.00 11/04/2025

4.22%
1,006,920.00
1,006,582.63
101.08

4.12%
1,010,768.00
12,881.94

0.49%
4,185.37
A1/A
A+

4.70 4.17
141781CF9 CARGILL INC 4.125 10/23/2030 1,100,000.00 10/20/2025

4.14%
1,099,171.70
1,099,217.52

99.46 4.25%
1,094,109.50
12,352.08

0.53%
(5,108.02)
A2/A
NA

4.73 4.20
30303MAB8 META PLATFORMS INC 4.2
11/15/2030 1,500,000.00 11/13/2025

4.16%
1,502,895.00
1,502,772.29

99.82 4.24%
1,497,306.00
15,400.00

0.73%
(5,466.29)
Aa3/AA-
NA

4.79 4.25
74153WCZ0 PRICOA GLOBAL FUNDING I 4.35
11/25/2030 1,750,000.00 12/08/2025

4.36%
1,749,440.00
1,749,456.69
100.08

4.33%
1,751,447.25
13,956.25

0.85%
1,990.56
Aa3/NA
AA-

4.82 4.27
89236TPH2 TOYOTA MOTOR CREDIT CORP 4.2
01/10/2031 1,080,000.00 01/07/2026

4.21%
1,079,665.20
1,079,668.87

99.83 4.24%
1,078,130.52
2,394.00

0.52%
(1,538.35)
A1/A+
A+

4.94 4.41
66815L2Z1 NORTHWESTERN MUTUAL
GLOBAL FUNDING 4.3 01/13/2031 1,020,000.00 01/06/2026

4.30%
1,019,908.20
1,019,909.16

99.89 4.32%
1,018,860.66
2,193.00

0.49%
(1,048.50)
Aa1/AA+
AAA

4.95 4.40
6944PL3M9 PACIFIC LIFE GLOBAL FUNDING II

4.375 02/03/2031 1,000,000.00 01/29/2026

4.34%
1,001,380.00
1,001,380.00
100.12

4.35%
1,001,199.00

0.00 0.49%
(181.00)
Aa3/AA-
AA-

5.01 4.45
Total Corporate 55,523,000.00 4.34%
55,129,485.79
55,220,561.07
100.38

4.09%
55,713,529.53
540,373.06

27.02%
492,968.46

3.55 3.08

MONEY MARKET
FUND
992995944 WC MMF SWEEP 52,857.76 --

1.80%
52,857.76
52,857.76

1.00 1.80%
52,857.76

0.00 0.03%

0.00 NA/NA
NA

0.00 0.00
VP4520004 WF ADV 100% TREAS MM FD-SVC
CL #008 2,666,747.81 --

3.24%
2,666,747.81
2,666,747.81

1.00 3.24%
2,666,747.81

0.00 1.29%

0.00 Aaa/AAAm
NA

0.00 0.00
Total Money Market
Fund 2,719,605.57 3.22%
2,719,605.57
2,719,605.57

1.00 3.22%
2,719,605.57

0.00 1.32%

0.00 0.00

0.00 MUNICIPAL BONDS
13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 1,740,000.00 10/30/2024

4.38%
1,749,169.80
1,746,768.69
102.44

3.75%
1,782,496.02
39,150.00

0.86%
35,727.33
Aa2/AA-
AA

3.50 3.22
Total Municipal
Bonds 1,740,000.00 4.38%
1,749,169.80
1,746,768.69
102.44

3.75%
1,782,496.02
39,150.00

0.86%
35,727.33

3.50 3.22

SUPRANATIONAL
29 95
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
4581X0DV7 INTER-AMERICAN DEVELOPMENT
BANK 0.875 04/20/2026 2,460,000.00 04/13/2021

0.97%
2,448,733.20
2,459,518.72

99.41 3.63%
2,445,399.90
6,038.96

1.19%
(14,118.82)
Aaa/AAA
NA

0.22 0.22
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
1,750,000.00 12/12/2024

4.25%
1,721,510.00
1,728,197.42
100.57

3.71%
1,759,975.00
19,775.00

0.85%
31,777.58
Aaa/AAA
NA

3.71 3.39
459058LR2

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 4.125 03/20/2030
1,700,000.00 03/14/2025

4.20%
1,694,220.00
1,695,226.59
101.41

3.75%
1,723,978.50
25,517.71

0.84%
28,751.91
Aaa/AAA
NA

4.13 3.72
Total Supranational 5,910,000.00 2.88%
5,864,463.20
5,882,942.73
100.33

3.69%
5,929,353.40
51,331.67

2.88%
46,410.67

2.39 2.18

US TREASURY
91282CBW0 UNITED STATES TREASURY 0.75
04/30/2026 2,500,000.00 05/27/2021

0.80%
2,493,652.34
2,499,689.32

99.30 3.67%
2,482,567.50
4,816.99

1.20%
(17,121.82)
Aa1/AA+
AA+

0.24 0.24
91282CCZ2 UNITED STATES TREASURY 0.875
09/30/2026 1,400,000.00 10/18/2021

1.19%
1,379,054.68
1,397,206.52

98.23 3.62%
1,375,259.20
4,173.08

0.67%
(21,947.32)
Aa1/AA+
AA+

0.66 0.64
91282CDG3 UNITED STATES TREASURY 1.125
10/31/2026 1,400,000.00 11/15/2021

1.25%
1,391,468.75
1,398,717.25

98.18 3.64%
1,374,504.60
4,046.27

0.67%
(24,212.65)
Aa1/AA+
AA+

0.75 0.72
91282CJP7 UNITED STATES TREASURY 4.375
12/15/2026 2,500,000.00 12/28/2023

4.01%
2,525,097.66
2,507,353.01
100.67

3.58%
2,516,762.50
14,423.08

1.22%
9,409.49
Aa1/AA+
AA+

0.87 0.84
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 2,300,000.00 04/17/2024

4.77%
2,283,109.38
2,293,225.19
101.11

3.54%
2,325,516.20
30,993.13

1.13%
32,291.01
Aa1/AA+
AA+

1.20 1.15
91282CKR1 UNITED STATES TREASURY 4.5
05/15/2027 3,200,000.00 05/08/2024

4.65%
3,186,500.00
3,194,230.14
101.18

3.54%
3,237,875.20
31,027.62

1.57%
43,645.06
Aa1/AA+
AA+

1.28 1.23
91282CEW7 UNITED STATES TREASURY 3.25
06/30/2027 3,250,000.00 --

3.18%
3,260,312.50
3,252,828.85

99.62 3.53%
3,237,559.00
9,337.02

1.57%
(15,269.85)
Aa1/AA+
AA+

1.41 1.36
91282CFB2 UNITED STATES TREASURY 2.75
07/31/2027 400,000.00 08/22/2022

3.12%
393,218.75
397,950.20

98.87 3.53%
395,484.40

30.39 0.19%
(2,465.80)
Aa1/AA+
AA+

1.50 1.45
91282CFH9 UNITED STATES TREASURY 3.125
08/31/2027 4,500,000.00 --

3.28%
4,468,902.34
4,490,138.24

99.38 3.54%
4,471,875.00
59,823.90

2.17%
(18,263.24)
Aa1/AA+
AA+

1.58 1.50
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 3,450,000.00 --

4.31%
3,421,152.34
3,440,270.29
100.94

3.53%
3,482,478.30
48,480.08

1.69%
42,208.01
Aa1/AA+
AA+

1.66 1.57
91282CFZ9 UNITED STATES TREASURY 3.875
11/30/2027 850,000.00 12/05/2022

3.81%
852,656.25
850,973.47
100.59

3.54%
855,013.30
5,700.72

0.41%
4,039.83
Aa1/AA+
AA+

1.83 1.74
30 96
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 2,750,000.00 --

3.67%
2,775,107.42
2,759,746.96
100.62

3.54%
2,766,973.00
9,419.89

1.34%
7,226.04
Aa1/AA+
AA+

1.91 1.82
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028 3,000,000.00 02/07/2023

3.81%
2,957,929.69
2,983,130.22

99.93 3.53%
2,998,008.00
290.06

1.45%
14,877.78
Aa1/AA+
AA+

2.00 1.91
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028 3,700,000.00 --

4.01%
3,699,113.28
3,699,687.15
100.89

3.55%
3,733,096.50
62,961.33

1.81%
33,409.35
Aa1/AA+
AA+

2.08 1.94
91282CNY3 UNITED STATES TREASURY 3.375
09/15/2028 5,000,000.00 10/28/2025

3.50%
4,982,812.50
4,984,364.60

99.47 3.59%
4,973,635.00
64,796.27

2.41%
(10,729.60)
Aa1/AA+
AA+

2.62 2.45
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 2,300,000.00 04/17/2024

4.62%
2,249,867.19
2,268,001.51
101.46

3.63%
2,333,600.70
32,320.05

1.13%
65,599.19
Aa1/AA+
AA+

3.16 2.90
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 2,000,000.00 07/01/2024

4.41%
1,985,546.88
1,990,134.79
101.88

3.66%
2,037,578.00
7,513.81

0.99%
47,443.21
Aa1/AA+
AA+

3.41 3.14
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 3,500,000.00 09/11/2024

3.45%
3,527,480.47
3,519,810.80

99.81 3.68%
3,493,437.50
53,974.45

1.69%
(26,373.30)
Aa1/AA+
AA+

3.58 3.27
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 5,000,000.00 --

3.83%
4,925,039.06
4,944,735.99

99.36 3.69%
4,968,165.00
59,615.38

2.41%
23,429.01
Aa1/AA+
AA+

3.66 3.36
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 3,000,000.00 10/31/2024

4.17%
2,993,789.06
2,995,344.35
101.48

3.70%
3,044,532.00
31,792.13

1.48%
49,187.65
Aa1/AA+
AA+

3.75 3.41
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 4,400,000.00 --

4.53%
4,369,171.88
4,375,669.94
102.38

3.71%
4,504,843.20
17,016.57

2.18%
129,173.26
Aa1/AA+
AA+

3.91 3.56
91282CMG3 UNITED STATES TREASURY 4.25
01/31/2030 4,000,000.00 02/07/2025

4.34%
3,983,906.25
3,987,061.19
101.95

3.72%
4,078,124.00
469.61

1.98%
91,062.81
Aa1/AA+
AA+

4.00 3.65
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 4,500,000.00 --

4.01%
4,496,958.99
4,497,459.54
101.01

3.73%
4,545,526.50
76,574.59

2.20%
48,066.96
Aa1/AA+
AA+

4.08 3.67
91282CNK3 UNITED STATES TREASURY 3.875
06/30/2030 5,000,000.00 --

3.78%
5,020,507.81
5,019,861.16
100.47

3.76%
5,023,635.00
17,127.07

2.44%
3,773.84
Aa1/AA+
AA+

4.41 4.01
91282CHR5 UNITED STATES TREASURY 4.0
07/31/2030 5,000,000.00 10/23/2025

3.59%
5,089,062.50
5,083,946.91
100.97

3.76%
5,048,635.00
552.49

2.45%
(35,311.91)
Aa1/AA+
AA+

4.50 4.08
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 5,000,000.00 --

3.66%
4,991,425.79
4,992,173.98

99.37 3.78%
4,968,360.00
77,106.35

2.41%
(23,813.98)
Aa1/AA+
AA+

4.58 4.11
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 5,000,000.00 --

3.59%
5,008,789.06
5,008,294.12

99.33 3.78%
4,966,405.00
61,744.51

2.41%
(41,889.12)
Aa1/AA+
AA+

4.66 4.19
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 1,750,000.00 12/15/2025

3.73%
1,731,816.41
1,732,288.58

98.71 3.79%
1,727,440.75
10,600.96

0.84%
(4,847.83)
Aa1/AA+
AA+

4.83 4.37
31 97
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of January 31, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total US Treasury 90,650,000.00 3.73%
90,443,449.23
90,564,294.26
100.36

3.65%
90,966,890.35
796,727.79

44.12%
402,596.09

2.98 2.74
Total Portfolio 206,274,386.28 4.03%
204,173,834.30
204,717,752.76

97.85 3.80%
206,174,722.48
1,600,582.56
100.00%
1,456,969.73

3.05 2.62
Total Market Value +
Accrued 207,775,305.04
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TRANSACTIONS
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TRANSACTION LEDGER
City of Cupertino | Account #10659|01/01/2026 Through 01/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 01/12/2026 89236TPH2 1,080,000.00

TOYOTA MOTOR
CREDIT CORP 4.2
01/10/2031

99.969 4.21% (1,079,665.20) 0.00 (1,079,665.20) 0.00
Purchase 01/13/2026 66815L2Z1 1,020,000.00

NORTHWESTERN

MUTUAL GLOBAL
FUNDING 4.3
01/13/2031

99.991 4.30% (1,019,908.20) 0.00 (1,019,908.20) 0.00
Purchase 01/14/2026 58989V2M5 1,310,000.00

MET TOWER GLOBAL
FUNDING 4.0
01/14/2029

99.871 4.05% (1,308,310.10) 0.00 (1,308,310.10) 0.00
Purchase 01/21/2026 448970AD5 635,000.00 HALST 26A A3 3.97 12/15/2028 99.985 3.98% (634,906.91) 0.00 (634,906.91) 0.00 Purchase 01/21/2026 58770YAD3 570,000.00 MBALT 2026-A A3 3.93 01/15/2030 99.980 3.97% (569,886.97) 0.00 (569,886.97) 0.00 Purchase 02/03/2026 6944PL3M9 1,000,000.00

PACIFIC LIFE GLOBAL
FUNDING II 4.375
02/03/2031
100.138 4.34% (1,001,380.00) 0.00 (1,001,380.00) 0.00
Total Purchase 5,615,000.00 (5,614,057.38) 0.00 (5,614,057.38) 0.00 TOTAL
ACQUISITIONS 5,615,000.00 (5,614,057.38) 0.00 (5,614,057.38) 0.00

DISPOSITIONS
Maturity 01/31/2026 91282CBH3 (2,500,000.00)

UNITED STATES
TREASURY 0.375
01/31/2026
100.000 0.75% 2,500,000.00 0.00 2,500,000.00 0.00
Total Maturity (2,500,000.00) 2,500,000.00 0.00 2,500,000.00 0.00 Sale 01/09/2026 58989V2D5 (770,000.00)

MET TOWER GLOBAL
FUNDING 1.25
09/14/2026

98.183 1.27% 756,009.10 3,074.65 759,083.75 (13,894.69) Sale 01/09/2026 59217GER6 (1,115,000.00)

METROPOLITAN LIFE

GLOBAL FUNDING I

1.875 01/11/2027

98.059 1.90% 1,093,357.85 10,336.98 1,103,694.83 (21,386.68) Sale 01/09/2026 57629WDE7 (1,000,000.00)

MASSMUTUAL GLOBAL
FUNDING II 1.2
07/16/2026

98.592 1.15% 985,920.00 5,766.67 991,686.67 (14,314.47) 34 100
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TRANSACTION LEDGER
City of Cupertino | Account #10659|01/01/2026 Through 01/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 01/09/2026 89236TJK2 (1,385,000.00)

TOYOTA MOTOR
CREDIT CORP 1.125
06/18/2026

98.805 1.13% 1,368,449.25 908.91 1,369,358.16 (16,497.35) Sale 01/30/2026 14913UAL4 (1,000,000.00)

CATERPILLAR

FINANCIAL SERVICES
CORP 5.0 05/14/2027
101.638 5.04% 1,016,380.00 10,555.56 1,026,935.56 16,838.71 Total Sale (5,270,000.00) 5,220,116.20 30,642.77 5,250,758.97 (49,254.48) TOTAL
DISPOSITIONS (7,770,000.00) 7,720,116.20 30,642.77 7,750,758.97 (49,254.48) 35 101
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IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 36 102
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BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr Unsubordinated US
Treasury & Agency Index
The ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 37 103
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CITY OF CUPERTINO
Agenda Item
25-14401 Agenda Date: 3/3/2026
Agenda #: 7.

Subject: P ublic hearing on the abatement of public nuisance from weeds or other fire hazards pursuant to provisions of Cupertino Municipal Code Chapter 9.08 and Resolution No. 25-101.

Conduct a public hearing for impacted property owners to contest the matter of proposed abatement and adopt the Resolution No. 26-023 ordering abatement of public nuisance from weeds or other fire hazards pursuant to provisions of Cupertino Municipal Code Chapter 9.08 and Resolution No. 25-101.

CITY OF CUPERTINO Printed on 2/26/2026Page 1 of 1
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1 CITY COUNCIL STAFF REPORT
Meeting: March 3, 2026

Subject
Public hearing on the abatement of public nuisance from weeds or other fire hazards pursuant to provisions of Cupertino Municipal Code Chapter 9.08 and Resolution No. 25-101.

Recommended Action
Conduct a public hearing for impacted property owners to contest the matter of proposed abatement and adopt the Draft Resolution ordering abatement of public nuisance from weeds or other fire hazards pursuant to provisions of Cupertino Municipal Code Chapter 9.08 and Resolution No. 25-101.

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 Chapter 9.08.020 states the following:

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.

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2 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.

How Parcels are Added to the Program
Parcels are added to the program through requests from members of the public, jurisdictional referrals, or when an inspector identifies a non -compliant property. Newly identified parcels enter an “add year,” which serves as a notification and education period for property owners to understand program requirements or contest inclusion. No fees are applied during the add year.

Following the add year, parcels enter a three -year monitoring period during which they must maintain Minimum Fire Safety Standards (Attachment E). Parcels are subject to an annual inspection fee during the monitoring years. If a parcel fails inspection, the monitoring period resets to ensure three consecutive years of compliance. County inspectors conduct inspections multiple times per year, with the primary inspection window running from April 30 through October 31. Properties are expected to remain compliant year-round.

Brush Abatement Program
The Brush Abatement Program is managed by the Santa Clara County Fire Department and is separate from the Weed Abatement Program. Section 16.40.200 of the Cupertino Municipal Code requires property owners in the locally adopted Wildland -Urban Interface Fir e Area (WUI) to maintain effective defensible space by removing brush, flammable vegetation and combustible growth as required by the fire code official due to steepness of terrain or other conditions. The County is authorized to remove the brush if the property owner does not do so and to recover the cost of abatement from the property owner.

On December 2, 2025, the Council adopted Resolution No. 25-101, declaring the growth of weeds or the accumulation of garden refuse, cuttings and other combustible trash upon private properties to be a potential fire hazard and a public nuisance. These properties are identified on the Weed Abatement Program Commencement Report prepared by the County ( Attachment B, Exhibit A in Resolution). If the Council wishes to adopt the Draft Resolution (Attachment A) ordering abatement of public nuisance, property owners on the Report will have until April 30, 2025 to abate any potential fire hazards on their property.

On January 14, 2026, the County mailed a notice to property owners listed on the Weed Abatement Program Commencement Report (Attachment C) indicating that their property must be cleared of hazards according to Minimum Fire Safety Standards (Attachment E), and that the City Council would conduct a public hearing on March 3, 2026 in order to consider all property owners having any objections to the proposed removal . City notices outlining the same information were mailed on February 19, 2026 (Attachment G).

Process for Weed Abatement Program Outlined
The process consists of nine steps that begin in November/December and go through July of each year, as shown on the following list. At this time the process is at Step No. 4. 106
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3 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 hearing date. The County filed the report on January 14, 2026 (Attachment B, Exhibit A in Resolution). Please note that the City’s hearing was scheduled for March, rather than the customary January date, because the County of Santa Clara did not have its 2026 fee schedule approved by the Board of Supervisors until January 6, 2026. This timing required the City to shift the hearing schedule accordingly (November).

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, 2026 or it will be done for them, with cost of the abatement plus administrative costs assessed to their property (January).

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

4. City Council holds the hearing to consider objections by property owners and adopts a resolution declaring weeds a public nuisance and ordering abatement. (March) Please note that the City’s hearing date has been shifted from the typical January timeframe to March to accommodate the revised timeline for Step 1.

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

6. After April 30, the properties are inspected by the County to verify that weeds were removed. The County sends a subsequent letter to property owners listed on the report, after an inspection determines that they are out of compliance; and proceeds with abatement if the property fails the inspection.

7. 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).

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).

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4 On November 21, 2023, the Council approved service level reductions defunding the Weed Abatement subsidy of $8,600 annually. All parcels in the Weed Abatement Program will be subject to a county inspection fee of $296.00. In previous years, the County administrative fee was waived for any property that was abated before the April 30 deadline. The waived fees would be billed to the City by the County to cover their cost of servicing the property. The City will no longer cover these costs.

Fiscal Impact
There is no fiscal impact at this step in the process. In January, the County Board of Supervisors approved its 2026 fee schedule, including increased service fees for the Weed Abatement Program. The updated program fees will take effect in June. Any costs associated with the program are charged to property owners, as determined at the lien assessment hearing in July.

The City Council holds the 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.

Sustainability Impact
There is no sustainability impact.

California Environmental Quality Act
Not applicable.

City Work Program (CWP) Item: No

CWP Item Description: N/A

Council Goal: N/A

_____________________________________

Prepared by: Lauren Sapudar, Acting City Clerk
Reviewed by: Kirsten Squarcia, Deputy City Manager
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – Draft Resolution and Exhibit A
B – 2026 Cupertino Commencement Report (Exhibit A)
C – County Letter to Property Owners to Abate Weeds
D – County Hearing Notice to Destroy Weeds and Program Fees E – Minimum Fire Safety Standards Program Brochure
F – Return Reply Form (RRF) Sample
G – City Letter to Property Owners
H – Approved Resolution No. 25-101
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RESOLUTION NO. 26-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO

ORDERING ABATEMENT OF PUBLIC NUISANCE PURSUANT TO
PROVISIONS OF CUPERTINO MUNICIPAL CODE CHAPTER 9.08 AND RESOLUTION NO. 25-101
WHEREAS, the City Council has declared that the growth of weeds, the accumulation of garden refuse, cuttings and other combustible trash upon the private properties as described in Resolution No. 2 5-101 adopted December 2, 2025, to be a potential public nuisance ( see Weed Abatement Program Commencement Report as Exhibit A); and

WHEREAS, after due notice, a public hearing/meeting thereon was held at the regular meeting of the City Council on March 3, 2026 to allow the impacted property owners to contest the matter; and
WHEREAS, from the evidence presented, both oral and written, at the public hearing/meeting of March 3, 2026, it is in the best interests of the City to acquire jurisdiction over the existing nuisances which have not been abated, and for the City to abate said nuisance in accordance with the law.

NOW, THEREFORE, BE IT RESOLVED:

1. That the Agricultural Commissioner of Santa Clara County is hereby ordered to abate such nuisance or cause the same to be abated by having the weeds destroyed or removed by cutting, discing, chemical spraying or any other method determined by them; that all debris, whether in piles or scattered, be hauled away;

2. That the Agricultural Commissioner and their deputies, assistants, employees, contracting agents or other representatives shall have express authorization to enter upon private properties for the purpose of causing the public nuisance to be abated, in accordance with all applicable legal requirements; and

3. That any affected property owners shall have the right to destroy or remove such weeds or debris themselves or have the same destroyed or removed at their own expense provided that such destruction or removal shall have been completed prior to the arrival of the Agricultural Commissioner or their 109
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Resolution No. 26-

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authorized representative to destroy or remove them by the Parcel Abatement Deadline of April 30, 2026.

BE IT FURTHER RESOLVED:

1. That the Agricultural Commissioner shall keep account of abating said nuisance and embody such account in a report and assessment list to the City Council, which shall be filed with the City Clerk.

2. Said reports of costs, hearing and collection procedures involved shall be provided as stated in Chapter 9.08.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino on the 3rd day of March, 2026 by the following vote:

Vote Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

Kitty Moore, Mayor
City of Cupertino

Date
ATTEST:

Lauren Sapudar, Acting City Clerk

Date

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1 10213 MINER PL 316-26-065 CHIANG ALEX H AND ANNE 10213 MINER PL CUPERTINO CA 95014-2201 2 10143 MINER PL 316-26-072 GALLI ROBERT J 10143 MINER PLACE CUPERTINO CA 95014 3 10033 HILLCREST RD 326-16-014 ISLAM MOHAMMAD KAMRUL AND 10033 HILLCREST RD CUPERTINO CA 95014-1021 4 326-20-039 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802 5 326-20-040 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802 6 10039 PENINSULA Av 326-25-050 DUAN RUIYUAN AND TAN JINGHUA 10039 PENINSULA AVE Cupertino CA 95014 7 10301 BEARDON DR 326-30-042 CHEN, WENHAU HORUS TRUSTEE & 20711 FARGO DR CUPERTINO CA 95014-1903 8 20847 GARDEN GATE DR 326-30-048 PADMANABAN, GOVINDARAJ A 20847 GARDEN GATE DR CUPERTINO CA 95014-1807 9 10467 GLENCOE DR 326-30-106 WEI , LI 10467 GLENCOE DR CUPERTINO CA 95014-1875 10 10450 GLENCOE DR 326-30-139 WOODWARD, DOUGLAS C TRUSTEE 10450 GLENCOE DR CUPERTINO CA 95014-1816 11 326-35-068 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802 12 22645 SAN JUAN RD 342-17-067 MULLEN, EVA JO TRUSTEE 22645 SAN JUAN ROAD CUPERTINO CA 95015-0835 13 10611 SANTA LUCIA RD 342-17-095 HUNTS, SUSAN E ET AL 10611 SANTA LUCIA RD CUPERTINO CA 95014-3937 14 EL CERRITO RD 342-21-004 ITEM, WERNER TRUSTEE & ET AL 22670 SAN JUAN RD CUPERTINO CA 95014-3933 15 VOSS AVE 342-45-001 CHAMBERLAIN, JACK T TRUSTEE 655 SKYWAY UNIT 230 SAN CARLOS CA 94070 16 23025 VOSS AVE 342-50-015 SAMPATH, NANDAKUMAR AND 23025 VOSS AVE CUPERTINO CA 95014-2661 17 21542 REGNART RD 356-23-040 LI, XUESONG AND TU , YITSEN 21542 REGNART RD CUPERTINO CA 95014-4819 18 21710 REGNART RD 356-23-057 REGNART LLC 3163 HAWKCREST CIR SAN JOSE CA 95135 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 THE 2009 AGRAWAL FAMILY TRUST 1074 NOVEMBER DRIVE CUPERTINO CA 95014 21 22400 JANICE AV 357-01-051 HSU HUI-CHI AND LAI HSIU-CHEN ET 22400 JANICE AVE CUPERTINO CA 95014 22 10164 S FOOTHILL BLV 357-01-091 MCKERNAN, DANIEL S AND 10164 S FOOTHILL BLVD CUPERTINO CA 95014-2602 23 10209 CARMEN RD 357-02-001 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-2707 24 10290 MIRA VISTA RD 357-02-024 YEN JOSEPH JENKUN AND LI 10290 MIRA VISTA RD CUPERTINO CA 95014-2705

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25 10234 SCENIC BLV 357-08-052 SCENIC DISTRICT LLC 20846 DUNBAR AVE CUPERTINO CA 95014 26 10234 SCENIC BLV 357-08-053 SCENIC DISTRICT LLC 20846 DUNBAR AVE CUPERTINO CA 95014 27 10234 SCENIC BLV 357-08-054 SCENIC DISTRICT LLC 10234 SCENIC BL CUPERTINO CA 95014 28 20950 STEVENS BL 359-07-006 BARTELS PROPERTIES ET AL 865 COTTON ST MENLO PARK CA 94025-5610 29 20865 MCCLELLAN RD 359-13-019 20865 MCCLELLAN LLC 200 CENTER ST EL SEGUNDO CA 90245 30 10476 S STELLING RD 359-13-136 WU, YUN JUNG AND CHIN-YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-1809 31 10468 S STELLING RD 359-13-137 WU, YUN JUNG AND CHIN-YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-1809 32 7540 MCCLELLAN RD 359-19-043 TIWAIR FAMILY REVOCABLE TRUST 10976 LINDA VISTA DRIVE CUPERTINO CA 95014-4771 33 20860 MCCLELLAN RD 359-20-030 ALPHAMCCLELLAN LLC 97 BOSTON AVE SAN JOSE CA 95128-1911 34 CRANBERRY DR 362-02-048 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 35 CRANBERRY DR 362-04-058 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 36 RAINBOW DR 362-09-026 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 37 7898 FIESTA LN 362-15-012 KRIMSON COAST HOLDINGS LLC 1509 LAURELWOOD SAN JOSE CA 95138-0000 38 362-16-037 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 39 362-19-033 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 40 CLEO AVE 362-31-030 ALMASI, AZITA TRUSTEE & ET AL 965 LAUREL GLEN DR PALO ALTO CA 94304-1323 41 S STELLING RD 366-09-028 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 42 STAUFFER LN 366-09-053 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 43 1258 S STELLING RD 366-11-109 VASAVAKUL, THAVEESINN AND 1258 S STELLING RD CUPERTINO CA 95014-5257 44 21670 RAINBOW CT 366-38-005 CHELLADURAI, JAYAKUMAR AND 21670 RAINBOW CT CUPERTINO CA 95014-4829 45 22365 REGNART RD 366-40-004 KOLLIPARA, RAVINDRANATH AND 22365 REGNART RD CUPERTINO CA 95014-4824 46 22033 REGNART RD 366-46-005 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-4979 47 22045 REGNART RD 366-46-006 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-4979 48 19990 HALL CT 369-04-017 LAMBIE, RICHARD H TRUSTEE 367 S BAYWOOD AVE SAN JOSE CA 95128

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49 898 BRENT DR 369-24-025 KUOK, CHUN FREDERICK 898 BRENT DR CUPERTINO CA 95014-4553 50 885 BETLIN AVE 369-27-028 LEE, TSUNG-EN TRUSTEE & ET AL 701 SENECA ST PALO ALTO CA 94301 51 10539 S BLANEY AVE 369-33-001 CHANG, MINGO M AND YOUNG , 10539 S BLANEY AVE CUPERTINO CA 95014-4542 52 10710 S. DE ANZA BLV 369-37-028 APRICOT VILLAGE LLC 991 W HEDDING ST SAN JOSE CA 95126-1257 53 19361 PHIL LN 375-05-029 LI, YIMIN AND HUANG , YUANYUAN 19361 PHIL LN CUPERTINO CA 95014-3429 54 10067 S TANTAU AVE 375-07-007 WU, HUNGJEN HENRY 10067 S TANTAU AVE CUPERTINO CA 95014-3541 55 19160 COZETTE LN 375-07-022 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-2707 56 10080 S TANTAU AVE 375-07-042 MAHAJAN, HAMENT AND MANJU 10080 S TANTAU AVE CUPERTINO CA 95014-3542 57 10177 JUDY AVE 375-07-056 YANG, YI-NING 10177 JUDY AVE CUPERTINO CA 95014-3522 58 19148 LOREE AVE 375-08-002 LO, SHIHCHE AND WANG , PEICHEN 19148 LOREE AVE CUPERTINO CA 95014-3539 59 10024 BRET AVE 375-11-047 10024 BRET LLC 1028 POLK AVE SUNNYVALE CA 94086-7440 60 10200 STERN AV 375-12-002 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 61 18921 ARATA WY 375-12-041 CHEN BILONG 18921 ARATA WAY CUPERTINO CA 95014-3670 62 18904 ARATA WA 375-13-003 WU, BENJAMIN HONG AND 20988 FAIRWOODS CT CUPERTINO CA 95014-4200 63 18815 TILSON AV 375-16-034 LI BEI 18815 TILSON AVE CUPERTINO CA 95014-2808 64 18731 BARNHART AVE 375-17-048 XIE, DEPING AND SUN , HUAMIN 18731 BARNHART AVE CUPERTINO CA 95014-3803 65 18755 BARNHART AVE 375-17-051 JOHNSON, ALLEN R 1220 TASMAN DR SPC 513 SUNNYVALE CA 94089 66 10361 JOHNSON AV 375-18-039 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 67 10542 STERLING BL 375-23-032 STERLING REALTY LLC 10542 STERLING BLVD CUPERTINO CA 95014-3834 68 10460 STERLING BLV 375-23-041 ZHANG, AILI 10460 STERLING BLVD CUPERTINO CA 95014-3832 69 10308 STERLING BLV 375-24-017 HAO, STEVE MIN AND SUN , QING 6962 BOLLINGER RD SAN JOSE CA 95129-2847 70 18621 RUNO CT 375-25-023 WANG, HENG-YUAN AND LEE , 18621 RUNO CT CUPERTINO CA 95014-3865 71 18730 BARNHART AVE 375-27-001 VASILIEV, OLGA 18730 BARNHART AVE CUPERTINO CA 95014-3804 72 18781 TUGGLE AVE 375-27-025 CAMPBELL, MICHAEL D P O BOX 5345 SAN JOSE CA 95150-5345 113
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73 18760 BARNHART AV 375-27-041 HALL, MARTHA S 18760 BARNHART AVE CUPERTINO CA 95014-3804 74 10740 MINETTE DR 375-31-039 CHEN, HUNG JUNG AND LI , MEI YI 10740 MINETTE DR CUPERTINO CA 95014-3615 75 10728 CARVER DR 375-32-010 MYOUNG, SOUNG HO AND LEE , EUN 10728 CARVER DR CUPERTINO CA 95014-3609 76 10630 CARVER DR 375-32-020 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 77 10616 CARVER DR 375-32-021 YETTAW, JACKIE A AND JERRI L 10616 CARVER DR CUPERTINO CA 95014-3607 78 18870 TUGGLE AVE 375-32-024 DELA CRUZ, SHERWIN PETER L 18870 TUGGLE AVE CUPERTINO CA 95014-3626 79 10510 CULBERTSON Dr 375-33-001 CULBERTON PRIME LLC 13428 CHRISTIE DR SARATOGA CA 95070-5103 80 18880 PENDERGAST AVE 375-33-044 HONG, GEORGE AND TSE , CINDY 18880 PENDERGAST AVE CUPERTINO CA 95014-3621 81 10657 MORENGO DR 375-34-013 ORTIZ, ROSA F ET AL 10657 MORENGO DR CUPERTINO CA 95014-3513 82 10670 MORENGO DR 375-34-058 CHANG, SSU-CHIA TRUSTEE & ET AL 10670 MORENGO DR CUPERTINO CA 95014-3514 83 18830 HUNTER WA 375-35-001 THOMPSON, LARRY L AND SHIRLEY 40133 CANYON HEIGHTS DR FREMONT CA 94539-3008 84 10650 JOHANSEN DR 375-36-008 JUDOPRASETIJO, AGOES H AND 13953 SHADOW OAKS WAY SARATOGA CA 95070-5541 85 10627 CULBERTSON DR 375-36-027 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 86 19141 MEIGGS LN 375-37-001 XU, HU AND WU , LINA 1301 LASSEN AVE MILPITAS CA 95035-6406 87 10720 S TANTAU AVE 375-37-002 QIN, ZUDIAN AND SUN , HAIXIA 10720 S TANTAU AVE CUPERTINO CA 95014-0000 88 10524 S TANTAU AVE 375-37-020 LIU, XIONG AND GUO , YAQIONG 10524 S TANTAU AVE CUPERTINO CA 95014-0000 89 10593 JOHANSEN DR 375-37-053 BURTZLAFF, JAMES L PO BOX 464 CUPERTINO CA 95015-0464 90 10611 JOHANSEN DR 375-37-056 SHINOHARA, YOSHIKAZU AND 10611 JOHANSEN DR CUPERTINO CA 95014-3508 91 891 S TANTAU AVE 375-38-044 HUANG, ZERY-KUEN AND YU-MEI 891 S TANTAU AVE CUPERTINO CA 95014-4648 92 947 S TANTAU AVE 375-38-051 LIANG, SIDNEY 947 S TANTAU AVE CUPERTINO CA 95014-4601 93 604 MILLER AVE 375-42-016 JAN, SEAWAY AND HUNG , CHIA YING604 MILLER AVE CUPERTINO CA 95014-4640 94 605 PHIL CT 375-42-017 KEDILAYA, SHASHI AND 605 PHIL CT CUPERTINO CA 95014-4654

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CHIANG ALEX H AND ANNE 10213 MINER PL CUPERTINO CA 95014-220110213 MINER PL 316-26-0651 GALLI ROBERT J 10143 MINER PLACE CUPERTINO CA 9501410143 MINER PL 316-26-0722 ISLAM MOHAMMAD KAMRUL AND 10033 HILLCREST RD CUPERTINO CA 95014-102110033 HILLCREST RD 326-16-0143 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802326-20-0394 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802326-20-0405 DUAN RUIYUAN AND TAN JINGHUA 10039 PENINSULA AVE Cupertino CA 9501410039 PENINSULA Av 326-25-0506 CHEN, WENHAU HORUS TRUSTEE & 20711 FARGO DR CUPERTINO CA 95014-190310301 BEARDON DR 326-30-0427 PADMANABAN, GOVINDARAJ A 20847 GARDEN GATE DR CUPERTINO CA 95014-180720847 GARDEN GATE DR 326-30-0488 WEI , LI 10467 GLENCOE DR CUPERTINO CA 95014-187510467 GLENCOE DR 326-30-1069 WOODWARD, DOUGLAS C TRUSTEE 10450 GLENCOE DR CUPERTINO CA 95014-181610450 GLENCOE DR 326-30-13910 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802326-35-06811 MULLEN, EVA JO TRUSTEE 22645 SAN JUAN ROAD CUPERTINO CA 95015-083522645 SAN JUAN RD 342-17-06712 HUNTS, SUSAN E ET AL 10611 SANTA LUCIA RD CUPERTINO CA 95014-393710611 SANTA LUCIA RD 342-17-09513 ITEM, WERNER TRUSTEE & ET AL 22670 SAN JUAN RD CUPERTINO CA 95014-3933EL CERRITO RD 342-21-00414 CHAMBERLAIN, JACK T TRUSTEE 655 SKYWAY UNIT 230 SAN CARLOS CA 94070VOSS AVE 342-45-00115 SAMPATH, NANDAKUMAR AND 23025 VOSS AVE CUPERTINO CA 95014-266123025 VOSS AVE 342-50-01516 LI, XUESONG AND TU , YITSEN 21542 REGNART RD CUPERTINO CA 95014-481921542 REGNART RD 356-23-04017 REGNART LLC 3163 HAWKCREST CIR SAN JOSE CA 9513521710 REGNART RD 356-23-05718 THOMAS, TONY G AND MATHEW , 22028 LINDY LN CUPERTINO CA 95014-481122028 LINDY LN 356-27-00719 THE 2009 AGRAWAL FAMILY TRUST 1074 NOVEMBER DRIVE CUPERTINO CA 9501422090 LINDY LN 356-27-02020 HSU HUI-CHI AND LAI HSIU-CHEN ET 22400 JANICE AVE CUPERTINO CA 9501422400 JANICE AV 357-01-05121 MCKERNAN, DANIEL S AND 10164 S FOOTHILL BLVD CUPERTINO CA 95014-260210164 FOOTHILLS BLV 357-01-09122 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-270710209 CARMEN RD 357-02-00123 YEN JOSEPH JENKUN AND LI 10290 MIRA VISTA RD CUPERTINO CA 95014-270510290 MIRA VISTA RD 357-02-02424

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SCENIC DISTRICT LLC 20846 DUNBAR AVE CUPERTINO CA 9501410234 SCENIC BLV 357-08-05225 SCENIC DISTRICT LLC 20846 DUNBAR AVE CUPERTINO CA 9501410234 SCENIC BLV 357-08-05326 SCENIC DISTRICT LLC 10234 SCENIC BL CUPERTINO CA 9501410234 SCENIC BLV 357-08-05427 BARTELS PROPERTIES ET AL 865 COTTON ST MENLO PARK CA 94025-561020950 STEVENS BL 359-07-00628 20865 MCCLELLAN LLC 200 CENTER ST EL SEGUNDO CA 9024520865 MCCLELLAN RD 359-13-01929 WU, YUN JUNG AND CHIN-YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-180910476 STELLINGS RD 359-13-13630 WU, YUN JUNG AND CHIN-YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-180910468 STELLINGS RD 359-13-13731 TIWAIR FAMILY REVOCABLE TRUST 10976 LINDA VISTA DRIVE CUPERTINO CA 95014-47717540 MCCLELLAN RD 359-19-04332 ALPHAMCCLELLAN LLC 97 BOSTON AVE SAN JOSE CA 95128-191120860 MCCLELLAN RD 359-20-03033 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179CRANBERRY DR 362-02-04834 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179CRANBERRY DR 362-04-05835 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179RAINBOW DR 362-09-02636 KRIMSON COAST HOLDINGS LLC 1509 LAURELWOOD SAN JOSE CA 95138-00007898 FIESTA LN 362-15-01237 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179362-16-03738 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179362-19-03339 ALMASI, AZITA TRUSTEE & ET AL 965 LAUREL GLEN DR PALO ALTO CA 94304-1323CLEO AVE 362-31-03040 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179STELLINGS RD 366-09-02841 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179STAUFFER LN 366-09-05342 VASAVAKUL, THAVEESINN AND 1258 S STELLING RD CUPERTINO CA 95014-52571258 STELLINGS RD 366-11-10943 CHELLADURAI, JAYAKUMAR AND 21670 RAINBOW CT CUPERTINO CA 95014-482921670 RAINBOW CT 366-38-00544 KOLLIPARA, RAVINDRANATH AND 22365 REGNART RD CUPERTINO CA 95014-482422365 REGNART RD 366-40-00445 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-497922033 REGNART RD 366-46-00546 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-497922045 REGNART RD 366-46-00647 LAMBIE, RICHARD H TRUSTEE 367 S BAYWOOD AVE SAN JOSE CA 9512819990 HALL CT 369-04-01748

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CITY OF CUPERTINO
COMMENCEMENT REPORT Exhibit A
KUOK, CHUN FREDERICK 898 BRENT DR CUPERTINO CA 95014-4553898 BRENT DR 369-24-02549 LEE, TSUNG-EN TRUSTEE & ET AL 701 SENECA ST PALO ALTO CA 94301885 BETLIN AVE 369-27-02850 CHANG, MINGO M AND YOUNG , 10539 S BLANEY AVE CUPERTINO CA 95014-454210539 BLANEYS AVE 369-33-00151 APRICOT VILLAGE LLC 991 W HEDDING ST SAN JOSE CA 95126-125710710 DE ANZAS. BLV 369-37-02852 LI, YIMIN AND HUANG , YUANYUAN 19361 PHIL LN CUPERTINO CA 95014-342919361 PHIL LN 375-05-02953 WU, HUNGJEN HENRY 10067 S TANTAU AVE CUPERTINO CA 95014-354110067 TANTAUS AVE 375-07-00754 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-270719160 COZETTE LN 375-07-02255 MAHAJAN, HAMENT AND MANJU 10080 S TANTAU AVE CUPERTINO CA 95014-354210080 TANTAUS AVE 375-07-04256 YANG, YI-NING 10177 JUDY AVE CUPERTINO CA 95014-352210177 JUDY AVE 375-07-05657 LO, SHIHCHE AND WANG , PEICHEN 19148 LOREE AVE CUPERTINO CA 95014-353919148 LOREE AVE 375-08-00258 10024 BRET LLC 1028 POLK AVE SUNNYVALE CA 94086-744010024 BRET AVE 375-11-04759 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-203210200 STERN AV 375-12-00260 CHEN BILONG 18921 ARATA WAY CUPERTINO CA 95014-367018921 ARATA WY 375-12-04161 WU, BENJAMIN HONG AND 20988 FAIRWOODS CT CUPERTINO CA 95014-420018904 ARATA WA 375-13-00362 LI BEI 18815 TILSON AVE CUPERTINO CA 95014-280818815 TILSON AV 375-16-03463 XIE, DEPING AND SUN , HUAMIN 18731 BA RNHART AVE CUPERTINO CA 95014-380318731 BARNHART AVE 375-17-04864 JOHNSON, ALLEN R 1220 TASMAN DR SPC 513 SUNNYVALE CA 9408918755 BARNHART AVE 375-17-05165 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-203210361 JOHNSON AV 375-18-03966 STERLING REALTY LLC 10542 STERLING BLVD CUPERTINO CA 95014-383410542 STERLING BL 375-23-03267 ZHANG, AILI 10460 STERLING BLVD CUPERTINO CA 95014-383210460 STERLING BLV 375-23-04168 HAO, STEVE MIN AND SUN , QING 6962 BOLLINGER RD SAN JOSE CA 95129-284710308 STERLING BLV 375-24-01769 WANG, HENG-YUAN AND LEE , 18621 RUNO CT CUPERTINO CA 95014-386518621 RUNO CT 375-25-02370 VASILIEV, OLGA 18730 BARNHART AVE CUPERTINO CA 95014-380418730 BARNHART AVE 375-27-00171 CAMPBELL, MICHAEL D P O BOX 5345 SAN JOSE CA 95150-534518781 TUGGLE AVE 375-27-02572

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Situs APN CITY/STATE
2026 WEED ABATEMENT PROGRAM

CITY OF CUPERTINO
COMMENCEMENT REPORT Exhibit A
HALL, MARTHA S 18760 BARNHART AVE CUPERTINO CA 95014-380418760 BARNHART AV 375-27-04173 CHEN, HUNG JUNG AND LI , MEI YI 10740 MINETTE DR CUPERTINO CA 95014-361510740 MINETTE DR 375-31-03974 MYOUNG, SOUNG HO AND LEE , EUN 10728 CARVER DR CUPERTINO CA 95014-360910728 CARVER DR 375-32-01075 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-203210630 CARVER DR 375-32-02076 YETTAW, JACKIE A AND JERRI L 10616 CARVER DR CUPERTINO CA 95014-360710616 CARVER DR 375-32-02177 DELA CRUZ, SHERWIN PETER L 18870 TUGGLE AVE CUPERTINO CA 95014-362618870 TUGGLE AVE 375-32-02478 CULBERTON PRIME LLC 13428 CHRISTIE DR SARATOGA CA 95070-510310510 CULBERTSON Dr 375-33-00179 HONG, GEORGE AND TSE , CINDY 18880 PENDERGAST AVE CUPERTINO CA 95014-362118880 PENDERGAST AVE 375-33-04480 ORTIZ, ROSA F ET AL 10657 MORENGO DR CUPERTINO CA 95014-351310657 MORENGO DR 375-34-01381 CHANG, SSU-CHIA TRUSTEE & ET AL 10670 MORENGO DR CUPERTINO CA 95014-351410670 MORENGO DR 375-34-05882 THOMPSON, LARRY L AND SHIRLEY 40133 C ANYON HEIGHTS DR FREMONT CA 94539-300818830 HUNTER WA 375-35-00183 JUDOPRASETIJO, AGOES H AND 13953 SHADOW OAKS WAY SARATOGA CA 95070-554110650 JOHANSEN DR 375-36-00884 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-203210627 CULBERTSON DR 375-36-02785 XU, HU AND WU , LINA 1301 LASSEN AVE MILPITAS CA 95035-640619141 MEIGGS LN 375-37-00186 QIN, ZUDIAN AND SUN , HAIXIA 10720 S TANTAU AVE CUPERTINO CA 95014-000010720 TANTAUS AVE 375-37-00287 LIU, XIONG AND GUO , YAQIONG 10524 S TANTAU AVE CUPERTINO CA 95014-000010524 TANTAUS AVE 375-37-02088 BURTZLAFF, JAMES L PO BOX 464 CUPERTINO CA 95015-046410593 JOHANSEN DR 375-37-05389 SHINOHARA, YOSHIKAZU AND 10611 JOHANSEN DR CUPERTINO CA 95014-350810611 JOHANSEN DR 375-37-05690 HUANG, ZERY-KUEN AND YU-MEI 891 S TANTAU AVE CUPERTINO CA 95014-4648891 TANTAUS AVE 375-38-04491 LIANG, SIDNEY 947 S TANTAU AVE CUPERTINO CA 95014-4601947 TANTAUS AVE 375-38-05192 JAN, SEAWAY AND HUNG , CHIA YING604 MILLER AVE CUPERTINO CA 95014-4640604 MILLER AVE 375-42-01693 KEDILAYA, SHASHI AND 605 PHIL CT CUPERTINO CA 95014-4654605 PHIL CT 375-42-01794

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County of Santa Clara
Consumer and Environmental Protection Agency

Agriculture and Environmental Management
1553 Berger Drive, Building 1 San Jose, CA 95112
80 W. Highland Avenue, Building K San Martin, CA 95046
12425 Monterey Road, San Martin, CA 95046

Mosquito and Vector Control District
1580 Berger Drive, San Jose, CA 95112 https://cepa.santaclaracounty.gov

Board of Supervisors: Sylvia Arenas, Betty Duong, Otto Lee, Susan Ellenberg, Margaret Abe-Koga County Executive: James R. Williams

IMPORTANT NOTICE TO ABATE WEEDS
January 14, 2026

Dear Property Owner:

Fire safety is crucial for protecting lives, preserving property, ensuring community well-being, and minimizing environmental impact. Removing fire hazards from your property is a proactive step to reduce the risk of injury, death, and significant damage. Effective prevention and preparedness measures not only save lives but also help safeguard our environment and reduce economic losses. Maintaining proper clearance requirements, known as Minimum Fire Safety Standards, is a shared responsibility. Since fire doesn't respect property boundaries, your local city (or County if in unincorporated areas) works with the County of Santa Clara Weed Abatement Program to ensure that all properties meet these Minimum Fire Safety Standards obligations. You are receiving this notice because our team has identified your property as being subject to the Weed Abatement Program. Please review the information carefully, and feel free to reach out for clarification or additional information.

The governing body for your property may adopt a resolution declaring that it contains fire hazards due to weeds or other debris. Following this action, the governing body will hold a public Commencement Hearing as part of a public meeting to consider an abatement order. This order will require you to remove any hazardous vegetation or combustible debris before the deadline outlined in the enclosed Weed Abatement Program Schedule. The public Commencement Hearing will take place on the date and at the location stated in the enclosed Notice to Destroy. This hearing will provide you with an opportunity to raise any objections or concerns regarding this requirement and the inclusion of your property in the Weed Abatement Program.

If you believe your property includes an environmentally sensitive habitat, please check the box on the blue Return Reply Form and provide any additional information on the Return Reply Form to assist us in determining the best approach to abating your property from fire hazards.

If, after the public Commencement Hearing, the Weed Abatement Program is approved for your property, the County is authorized by your city, and the California Health and Safety Code sections §14875-14922 to inspect your property to confirm that it has been cleared of hazards and is compliant with Minimum Fire Safety Standards (see enclosed brochure).

Inspections will begin after the abatement deadline for your jurisdiction. This notice does not relieve you of your responsibility to complete the necessary work before your jurisdiction's deadline. All properties designated to be part of the Weed Abatement Program will have a $296 annual inspection fee to cover the cost of the program. This $296 cost will be included on your property tax bill as a special assessment.

In addition to the $296 annual inspection fee, if the parcel is found non-compliant at the time of our inspection, the parcel will be assessed a processing fee of $953 per parcel, and the property will be scheduled for abatement by the County- designated contractor. You will not incur additional charges if the abatement work is completed before the County- designated contractor arrives. However, should the County-designated contractor perform the abatement work, the parcel will incur the cost associated with the contractor's work plus an additional County administrative fee of $1,383 per parcel.

For those parcels requiring a warrant, a fee of $3,006 per parcel will be assessed.

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2 The County will use the lowest cost method of abatement considering the physical characteristics of your property and any other environmental or related concerns. Fees are detailed on the price list included in the Notice to Destroy. The total amount of fees incurred will be included as a special assessment on your property tax bill following confirmation of the charges by your city (or the County if the parcel is in an unincorporated area) at a public Assessment Hearing. This Assessment Hearing will be scheduled in the summer, with the exact date determined by your governing body. Typically, Assessment Hearing information is posted at the physical location of the governing body (typically at a city hall building or other government center and most also publish this information on their websites) prior to the meeting.

You can avoid all costs, other than the $296 annual inspection fee, by completing the abatement work yourself according to Minimum Fire Safety Standards (see enclosed brochure) prior to the abatement deadline for your jurisdiction and maintaining the Minimum Fire Safety Standards for the duration of fire season, which typically runs March through October. Parcels will be removed from the program after three consecutive years of voluntary compliance (work completed by parcel owner prior to the deadline and confirmed by our inspection).

In preparation for this program, please complete and return the enclosed blue Return Reply Form so we are notified of your plans for abating your property.

If you designate on your Return Reply Form that you intend to abate the weeds yourself, you need to complete the abatement before the deadline listed on the attached abatement program schedule and maintain fire-safe conditions for the duration of the fire season. Responding that you intend to provide maintenance does not release you from this responsibility to have the maintenance completed before your deadline and repeated as necessary to maintain Minimum Fire Safe Standards. The County will abate hazardous vegetation as required after the deadline for your jurisdiction at your cost.

Enclosed you will find the following information:

Return Reply Form specific to your parcel. Please complete and return it to us.

Notice to Destroy Weeds informing you of an upcoming public Commencement Hearing (that you may attend if you have any objections to the proposed removal of hazardous vegetation or debris from your parcel). Your jurisdiction may offer you the ability to participate in this meeting virtually; please confirm directly with your jurisdiction.

Weed Abatement Program Schedule for your city with current County abatement fees.

County of Santa Clara Weed Abatement Brochure.

Please be aware that any abatement performed by the County must comply with all applicable regulations. If your property falls within an area designated as possible habitat for burrowing owls or any other protected species of bird or animal, the methods used to remove vegetation may be regulated by specific laws or local ordinances.

If you are no longer the parcel owner identified by this mailing, please notify us immediately at (408) 282-3145. If you sell your parcel after the date of this letter, it is your responsibility to notify the new owner and include the obligation to pay any abatement costs in your sale agreement. Without taking this action, you will be responsible for all hazard abatement charges assessed to the parcel.

Our goals are voluntary compliance with the Minimum Fire Safety Standards and that all properties remain safe from fire. If you have any questions or need on-site advice to help you achieve compliance with the Minimum Fire Safety Standards, please call us at (408) 282-3145.

Sincerely,

Garik Iosilevsky, Weed Abatement Manager
Consumer and Environmental Protection Agency
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TRA 13
Notice to
Destroy
Weeds

NOTICE IS HEREBY GIVEN that on December 2, 2025 pursuant to the provisions of Section 9.08 of the Cupertino Municipal Code, the City Council passed a resolution declaring that all weeds growing upon any private property or in any public street or alley, as defined in Section 9.08.010 of the Cupertino Municipal Code constitute a public nuisance, which nuisance must be abated by the destruction or removal thereof.

NOTICE IS FURTHER GIVEN that property owners shall without delay, remove all such weeds from their property and the abutting half of the street in front and alleys, if any, behind such property and between the lot lines thereof as extended, or such weeds w ill be destroyed or removed and such nuisance abated by the County Consumer and Environmental Protection Agency, in which case the cost of such destruction or removal will, including but not limited to administration costs, be assessed upon the lots and lands from which, or from the front or rear of which, such weeds shall have been destroyed or removed and such cost will constitute a lien upon such lots or lands until paid and will be collected upon the next tax roll upon which general municipal taxes are collected. All property owners having any objections to the proposed destruction or removal of such weeds are hereby notified to attend a meeting of said City to be held in the Council Chambers of City Hall, located at 10300 Torre Ave., Cupertino, California, on Tuesday, March 3, 2026 at 6:45 p.m., or as soon thereafter as the matter can be heard, when their objections will be heard and given due consideration.

The language and format for this notice is required by California Health and Safety Code Sections 14891 Et. Seq.
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CITY OF CUPERTINO WEED ABATEMENT PROGRAM SCHEDULE

March 3, 2026 Public hearing to consider objections to Abatement List.

April 30, 2026 PARCEL ABATEMENT DEADLINE
Parcel must be free from hazardous vegetation by this date or Inspector will order abatement.

July/August 2026 Assessment Hearing date to be scheduled by City Council.

2026 COUNTY WEED ABATEMENT FEES

Properties in the Weed Abatement Program, you will be responsible for an annual inspection fee of $296.00 per parcel.

Please be advised that the property owner of any parcel found to be non-compliant on or after the April 30th deadline may be charged a work order processing fee of $953.00 and the property will be scheduled for abatement by the County contractor. If you complete the abatement work before the County contractor performs the abatement, you will not incur further charges. Should the abatement work be performed by a County contractor, you will be assessed the contractor’s charges plus a County administrative fee of $1,383.00 per parcel.

For those parcels requiring a warrant a fee of $3,006.00 per parcel will be assessed.

2026 COUNTY CONTRACTOR’S WEED ABATEMENT PRICE LIST

A) Disc Work**

PARCEL SIZE: 1st Disc + 2nd Disc = Total Discs 0-12,500 sq.ft. $291-$425 $149-$180 $440-$605 12,501sq.ft.- 43,560sq.ft. $338-$425 $149-$225 $487-$650 Larger than 1 Acre $152-$309 $130-$151 $282-$460 (PER ACRE)

** It is required that parcels be disced twice a year. The cost for the first discing is higher due to additional work normally required during the first discing.

B) HANDWORK $5.09-$5.73 PER 100 Square Feet (SF) C) FLAIL 6 Foot Mower $6.40-10.97 PER 1,000 SF MOWING 12 Foot Mower $6.40-10.97 PER 1,000 SF D) LOADER WORK $153-$185 PER HOUR
E) DUMP TRUCK $141-$185 PER HOUR
F) BRUSH WORK $4.80-$5.47 PER 100 SF
G) DUMP FEE 100%
Added to orders with debris removal at 100% of the dump site charge. .

*Please note this program does not offer herbicide application as a method of abatement. 122
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Minimum Fire Safety
Standards You
Should Know About
1553 Berger Drive, San José, CA 95112
Protect what’s important—your loved
ones, your pets, and your property.

Recognize potential fire hazards and
apply these Minimum Fire Safety
Standards.

We help protect our community from
fire dangers. Our goal is to ensure that
properties are free from fire hazards,
such as overgrown vegetation and
debris, to minimize the spread of fires.

About the County of
Santa Clara Weed
Abatement Program
You Can Help Prevent
Fires in Your
Neighborhood
[email protected]
(408) 282-3145
cepascc.org/weed-abatement
Contact Us
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Scan or visit the link to view
the complete list of Minimum
Fire Safety Standards.

1. Tall Grass, Weeds, and
Flammable Vegetation
Keep weeds, grass, and brush below
6 inches in height.

2. Flammable Debris
Keep your property clear of debris such
as trash, wood, and dead plants.

3. Overgrown Trees
Keep branches at least 10 feet from
chimneys, 6 feet off the ground, and
clear from under the eaves of houses.4. Dead Vegetation on Roofs Keep roofs and gutters clear of leaves
and debris. Remove dead trees and
vegetation.
cepascc.org/fire-safety
I received a notice that
my property is on the
Weed Abatement Program.

What happens next?
A Weed Abatement inspector will visit
your property annually for at least
three years to determine if it is in
compliance with the Minimum Fire
Safety Standards.

If a violation is found on your
property, you have two weeks to
correct it before we return for
another inspection. If you don't
correct it or contact us, we may
take necessary steps to bring
your property into compliance.

This will result in additional costs
beyond the annual inspection
fees.

If your property is in compliance
and remains compliant during
our annual inspections, you will
only be charged the annual
inspection fee for three
consecutive years.

Minimum Fire Safety Standards
Keep your property and neighborhood safe from fires. T o be in compliance with the County’s Weed Abatement Program, follow the Minimum Fire S afety Standards:

Refer to the Weed Abatement
notice letter for details.Español | 中⽂ | Tiếng Việt | Tagalog 125
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2026 Return Reply Form
IMPORTANT: Please complete this form and mail back to the Weed Abatement Program within 15 days of receipt of this notice.Thank you. 87TRA:

AT&T COMMS OF CALIF INC
Parcel Number Site Address

AT&T COMMS OF CALIF INC
1090 E DUANE AVE
SUNNYVALE CA 94085-2623
Please check the box that
applies for each parcel
(see explanations below):

ABC
*825-02-138*
825-02-138 73 SOUTH SAN MARTIN
Please provide any additional information such as new owners, presence of piping, irrigation, crops or other improvement.

If your property is fenced/locked, please provide instructions on how to enter the property. If you are no longer the owner of the property identified by this mailing, please notify the County immediately. If you sell your property after December 1st, 2025, it is your responsibility to notify the new owner and to include the obligation to pay any abatement costs in your agreement of sale. Without taking this action, you will be liable for all hazard abatement charges assessed to the property.

Thank you
Date Day time phoneName (please print)Signature
A
B
C
I am no longer the owner of this property, and the new owner information is listed below. Please return Reply Form immediately.

I intend to maintain this parcel in a manner consistent with the Minimum Fire Safety Standards from April 1, 2025 through the end of the fire season (typically runs through October). All parcels on the abatement list remain subject to inspection and fee to ascertain compliance. Non-compliance by the deadline will result in an Inspection fee and the abatement of weeds by the County contractor and the resulting charges added to the property tax.

I request that the County Contractor perform weed abatement work on this parcel. Charges for this work will be added to my property tax bill. (All County fees Apply)
( )
Please check if you feel this parcel is environmentaly sensitive SAMPLE
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February 19, 2026

Re: Weed Abatement Season Commenc ement – March 3, 2026 Public Hearing for Nuisance Declaration and Abatement Order

Dear Property Owner,

You are receiving this letter, because your property is currently listed on the Weed Abatement Program inspection list pursuant to Section 9.08 of the Cupertino Municipal Code. On Tuesday, March 03, 2026, the Cupertino City Council will hold a public hearing to consider declaring properties on the list as having potential fire hazards from weeds or other combustible debris a public nuisance and authorizing the Santa Clara County Department of Agriculture to abate the nuisance or remove hazardous vegetation following the abatement deadline specified below. Property owners may raise objections to the declaration by writing to the City Council in advance of the meeting or speaking during the meeting. The Council meets at 6:45 p.m., in the Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, CA 95014 and via teleconference. Details on how to attend the meeting will appear on the City Council Agenda for that date.

About the Weed Abatement Program

The Santa Clara County Department of Agriculture and Environmental Management and the City of Cupertino are working together to prevent fire hazards posed by vegetative growth and accumulation of combustible materials.

All properties in Cupertino are subject to the requirements of the Weed Abatement Program. Property owners are required to keep their property free of fire hazards—such as weeds — throughout the year. However, the Minimum Fire Safety Standards (MFSS) are required to be met each year by April 30 and then maintained throughout the year. Please see the reverse side of this page for the complete MFSS guidelines.

All parcels in the Weed Abatement Program will be subject to a county inspection fee of $296.00. In addition to the $296.00 annual inspection fee, if the parcel is found non - compliant at the time of our inspection, the parcel will be assessed a processing fee of $953.00 per parcel, and the property will be scheduled for abatement by the County - designated contractor. You will not incur additional charges if the abatement work is completed before the County -designated contractor arrives. However, should the County-designated contractor perform the abatement work, the parcel will incur the cost associated with the contractor's work plus an additional County administrative fee of 127
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$1,383.00 per parcel. For those parcels requiring a warrant, a fee of $3,006.00 per parcel will be assessed.

WEED ABATEMENT PROGRAM STANDARDS

The clearance requirements for the Weed Abatement program are referred to as the Minimum Fire Safety Standards (MFSS).

Minimum Fire Safety Standards (MFSS)

1. Vegetation must not exceed 6 inches in height any time after the compliance deadline

2. Maintain grasses and weeds below six (6) inches for ten feet horizontally on both sides of all roadways, including driveways and all access routes.

3. Clear flammable vegetation a minimum of thirty feet around any structure, occupied or not. Ornamental vegetation should be kept clear of dead material. Some conditions, such as slopes, may require up to 100 feet of clearance.

4. Parcels up to one acre shall be completely abated. Parcels one to five acres require 30-foot clearance around structures and perimeter property lines. Additional 30- foot cross fuel breaks may also be required.

5. Parcels larger than five acres require 30- foot clearance around structure and perimeter property lines in addition to 30-foot cross breaks as needed to separate the remaining vegetation into sections no larger than five acres.

6. Keep property clear of accumulation of combustible debris, such as trash, wood, and dead vegetation. Stacked firewood and neatly piled yard waste is not considered to be combustible debris.

7. Keep vegetation cleared from under the eaves of houses.

8. Trim tree branches to at least 10 feet from the structure and chimney.

9. Clear leaves, pine needles, and debris from roof and gutters.

If the compliance work identified for your property involves brush or weed removal, you may request the services of the approved County of Santa Clara abatement contractor. If you are interested in this service, please call the Hazardous Vegetation Service line at (408) 282-3145 to request more information and/or to schedule an inspection appointment for a cost estimate.

If you have any questions about the information on this notice, please contact the Santa Clara County Department of Agriculture, Hazardous Vegetation Management Program at (408) 918-4600.

Sincerely,

Lauren Sapudar
Acting City Clerk
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OF

FICE OF THE CITY CLERK
CIT
Y HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3223 • FAX: (408) 777-3366
AFFID

AVIT OF MAILING
No
tice of Hearing on Report and Assessment for Weed Abatement Mel
issa Robertson, Administrative Assistant, declares as follows:
• Th
at she is a citizen of the United States, over the age of 18 years, that at all times herein mentioned was an employee / agent of the City of Cupertino. • Tha
t on February 19, 2026 she deposited in the United States Post Office, California, a Notice of Hearing, a copy of which is attached hereto. • Th
at said mailing list has been provided by the Agricultural Commissioner and lists the owners of property who are entitled to Notice of Hearing on Report and Assessment for Weed Abatement.
• Th
at on said day, there was a regular communication by Unites States mail between Cupertino, California and the addresses shown on the attached mailing list.

I d
eclare under penalty of perjury that the
foregoing is true and correct.

Dat
e:__2/19/2026____________________
By: Melissa Robertson
Cu
pertino City Hall
10300 Torre Avenue
Cupertino, CA 95014
(408) 777-3223
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RESOLUTION NO. 25 101

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 3rd day of March, 2026, 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 how to attend the 130
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Resolution No. 25 101

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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 2nd day of December 2025 by the following vote:

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

Liang Chao, Mayor
City of Cupertino
Date
ATTEST:

Kirsten Squarcia, City Clerk Date
12/ 11/2025
12/11/2025
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2026 WEED ABATEMENT PROGRAM

CITY OF CUPERTINO
COMMENCEMENT REPORT Exhibit A
Situs APN CITY/ STATE
24 records of 94 Santa Clara County Weed Abatement Program Page 1 1 10213 MINER PL 316- 26- 065 CHIANG ALEX H AND ANNE 10213 MINER PL CUPERTINO CA 95014-2201 2 10143 MINER PL 316- 26- 072 GALLI ROBERT J 10143 MINER PLACE CUPERTINO CA 95014 3 10033 HILLCREST RD 326- 16- 014 ISLAM MOHAMMAD KAMRUL AND 10033 HILLCREST RD CUPERTINO CA 95014-1021 4 326- 20- 039 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802 5 326- 20- 040 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802 6 10039 PENINSULA Av 326- 25- 050 DUAN RUIYUAN AND TAN JINGHUA 10039 PENINSULA AVE Cupertino CA 95014 7 10301 BEARDON DR 326- 30- 042 CHEN, WENHAU HORUS TRUSTEE & 20711 FARGO DR CUPERTINO CA 95014-1903 8 20847 GARDEN GATE DR 326- 30- 048 PADMANABAN, GOVINDARAJ A 20847 GARDEN GATE DR CUPERTINO CA 95014-1807 9 10467 GLENCOE DR 326- 30- 106 WEI , LI 10467 GLENCOE DR CUPERTINO CA 95014-1875 10 10450 GLENCOE DR 326- 30- 139 WOODWARD, DOUGLAS C TRUSTEE 10450 GLENCOE DR CUPERTINO CA 95014-1816 11 326- 35- 068 SOUTHERN PACIFIC 200 S Adams St. Anaheim CA 92802 12 22645 SAN JUAN RD 342- 17- 067 MULLEN, EVA JO TRUSTEE 22645 SAN JUAN ROAD CUPERTINO CA 95015-0835 13 10611 SANTA LUCIA RD 342- 17- 095 HUNTS, SUSAN E ET AL 10611 SANTA LUCIA RD CUPERTINO CA 95014-3937 14 EL CERRITO RD 342- 21- 004 ITEM, WERNER TRUSTEE & ET AL 22670 SAN JUAN RD CUPERTINO CA 95014-3933 15 VOSS AVE 342- 45- 001 CHAMBERLAIN, JACK T TRUSTEE 655 SKYWAY UNIT 230 SAN CARLOS CA 94070 16 23025 VOSS AVE 342- 50- 015 SAMPATH, NANDAKUMAR AND 23025 VOSS AVE CUPERTINO CA 95014-2661 17 21542 REGNART RD 356- 23- 040 LI, XUESONG AND TU , YITSEN 21542 REGNART RD CUPERTINO CA 95014-4819 18 21710 REGNART RD 356- 23- 057 REGNART LLC 3163 HAWKCREST CIR SAN JOSE CA 95135 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 THE 2009 AGRAWAL FAMILY TRUST 1074 NOVEMBER DRIVE CUPERTINO CA 95014 21 22400 JANICE AV 357- 01- 051 HSU HUI- CHI AND LAI HSIU- CHEN ET 22400 JANICE AVE CUPERTINO CA 95014 22 10164 S FOOTHILL BLV 357- 01- 091 MCKERNAN, DANIEL S AND 10164 S FOOTHILL BLVD CUPERTINO CA 95014-2602 23 10209 CARMEN RD 357- 02- 001 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-2707 24 10290 MIRA VISTA RD 357- 02- 024 YEN JOSEPH JENKUN AND LI 10290 MIRA VISTA RD CUPERTINO CA 95014-2705 132
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COMMENCEMENT REPORT Exhibit A
Situs APN CITY/ STATE
24 records of 94 Santa Clara County Weed Abatement Program Page 2 25 10234 SCENIC BLV 357- 08- 052 SCENIC DISTRICT LLC 20846 DUNBAR AVE CUPERTINO CA 95014 26 10234 SCENIC BLV 357- 08- 053 SCENIC DISTRICT LLC 20846 DUNBAR AVE CUPERTINO CA 95014 27 10234 SCENIC BLV 357- 08- 054 SCENIC DISTRICT LLC 10234 SCENIC BL CUPERTINO CA 95014 28 20950 STEVENS BL 359- 07- 006 BARTELS PROPERTIES ET AL 865 COTTON ST MENLO PARK CA 94025-5610 29 20865 MCCLELLAN RD 359- 13- 019 20865 MCCLELLAN LLC 200 CENTER ST EL SEGUNDO CA 90245 30 10476 S STELLING RD 359- 13- 136 WU, YUN JUNG AND CHIN- YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-1809 31 10468 S STELLING RD 359- 13- 137 WU, YUN JUNG AND CHIN- YUN 20985 GARDEN GATE DR CUPERTINO CA 95014-1809 32 7540 MCCLELLAN RD 359- 19- 043 TIWAIR FAMILY REVOCABLE TRUST 10976 LINDA VISTA DRIVE CUPERTINO CA 95014-4771 33 20860 MCCLELLAN RD 359- 20- 030 ALPHAMCCLELLAN LLC 97 BOSTON AVE SAN JOSE CA 95128-1911 34 CRANBERRY DR 362- 02- 048 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 35 CRANBERRY DR 362- 04- 058 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 36 RAINBOW DR 362- 09- 026 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 37 7898 FIESTA LN 362- 15- 012 KRIMSON COAST HOLDINGS LLC 1509 LAURELWOOD SAN JOSE CA 95138-0000 38 362- 16- 037 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 39 362- 19- 033 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 40 CLEO AVE 362- 31- 030 ALMASI, AZITA TRUSTEE & ET AL 965 LAUREL GLEN DR PALO ALTO CA 94304-1323 41 S STELLING RD 366- 09- 028 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 42 STAUFFER LN 366- 09- 053 UNION PACIFIC RAILROAD 1400 DOUGLAS ST. STOP 1690 OMAHA NE 68179 43 1258 S STELLING RD 366- 11- 109 VASAVAKUL, THAVEESINN AND 1258 S STELLING RD CUPERTINO CA 95014-5257 44 21670 RAINBOW CT 366- 38- 005 CHELLADURAI, JAYAKUMAR AND 21670 RAINBOW CT CUPERTINO CA 95014-4829 45 22365 REGNART RD 366- 40- 004 KOLLIPARA, RAVINDRANATH AND 22365 REGNART RD CUPERTINO CA 95014-4824 46 22033 REGNART RD 366- 46- 005 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-4979 47 22045 REGNART RD 366- 46- 006 BIGLER, ROBERT A AND PUNITA P 11230 BUBB RD CUPERTINO CA 95014-4979 48 19990 HALL CT 369- 04- 017 LAMBIE, RICHARD H TRUSTEE 367 S BAYWOOD AVE SAN JOSE CA 95128 133
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COMMENCEMENT REPORT Exhibit A
Situs APN CITY/ STATE
72 records of 94 Santa Clara County Weed Abatement Program Page 3 49 898 BRENT DR 369- 24- 025 KUOK, CHUN FREDERICK 898 BRENT DR CUPERTINO CA 95014-4553 50 885 BETLIN AVE 369- 27- 028 LEE, TSUNG- EN TRUSTEE & ET AL 701 SENECA ST PALO ALTO CA 94301 51 10539 S BLANEY AVE 369- 33- 001 CHANG, MINGO M AND YOUNG , 10539 S BLANEY AVE CUPERTINO CA 95014-4542 52 10710 S. DE ANZA BLV 369- 37- 028 APRICOT VILLAGE LLC 991 W HEDDING ST SAN JOSE CA 95126-1257 53 19361 PHIL LN 375- 05- 029 LI, YIMIN AND HUANG , YUANYUAN 19361 PHIL LN CUPERTINO CA 95014-3429 54 10067 S TANTAU AVE 375- 07- 007 WU, HUNGJEN HENRY 10067 S TANTAU AVE CUPERTINO CA 95014-3541 55 19160 COZETTE LN 375- 07- 022 HSU, TRACY TRUSTEE 22330 SANTA PAULA AVE CUPERTINO CA 95014-2707 56 10080 S TANTAU AVE 375- 07- 042 MAHAJAN, HAMENT AND MANJU 10080 S TANTAU AVE CUPERTINO CA 95014-3542 57 10177 JUDY AVE 375- 07- 056 YANG, YI- NING 10177 JUDY AVE CUPERTINO CA 95014-3522 58 19148 LOREE AVE 375- 08- 002 LO, SHIHCHE AND WANG , PEICHEN 19148 LOREE AVE CUPERTINO CA 95014-3539 59 10024 BRET AVE 375- 11- 047 10024 BRET LLC 1028 POLK AVE SUNNYVALE CA 94086-7440 60 10200 STERN AV 375- 12- 002 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 61 18921 ARATA WY 375- 12- 041 CHEN BILONG 18921 ARATA WAY CUPERTINO CA 95014-3670 62 18904 ARATA WA 375- 13- 003 WU, BENJAMIN HONG AND 20988 FAIRWOODS CT CUPERTINO CA 95014-4200 63 18815 TILSON AV 375- 16- 034 LI BEI 18815 TILSON AVE CUPERTINO CA 95014-2808 64 18731 BARNHART AVE 375- 17- 048 XIE, DEPING AND SUN , HUAMIN 18731 BARNHART AVE CUPERTINO CA 95014-3803 65 18755 BARNHART AVE 375- 17- 051 JOHNSON, ALLEN R 1220 TASMAN DR SPC 513 SUNNYVALE CA 94089 66 10361 JOHNSON AV 375- 18- 039 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 67 10542 STERLING BL 375- 23- 032 STERLING REALTY LLC 10542 STERLING BLVD CUPERTINO CA 95014-3834 68 10460 STERLING BLV 375- 23- 041 ZHANG, AILI 10460 STERLING BLVD CUPERTINO CA 95014-3832 69 10308 STERLING BLV 375- 24- 017 HAO, STEVE MIN AND SUN , QING 6962 BOLLINGER RD SAN JOSE CA 95129-2847 70 18621 RUNO CT 375- 25- 023 WANG, HENG- YUAN AND LEE , 18621 RUNO CT CUPERTINO CA 95014-3865 71 18730 BARNHART AVE 375- 27- 001 VASILIEV, OLGA 18730 BARNHART AVE CUPERTINO CA 95014-3804 72 18781 TUGGLE AVE 375- 27- 025 CAMPBELL, MICHAEL D P O BOX 5345 SAN JOSE CA 95150-5345 134
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COMMENCEMENT REPORT Exhibit A
Situs APN CITY/ STATE
94 records of 94 Santa Clara County Weed Abatement Program Page 4 73 18760 BARNHART AV 375- 27- 041 HALL, MARTHA S 18760 BARNHART AVE CUPERTINO CA 95014-3804 74 10740 MINETTE DR 375- 31- 039 CHEN, HUNG JUNG AND LI , MEI YI 10740 MINETTE DR CUPERTINO CA 95014-3615 75 10728 CARVER DR 375- 32- 010 MYOUNG, SOUNG HO AND LEE , EUN 10728 CARVER DR CUPERTINO CA 95014-3609 76 10630 CARVER DR 375- 32- 020 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 77 10616 CARVER DR 375- 32- 021 YETTAW, JACKIE A AND JERRI L 10616 CARVER DR CUPERTINO CA 95014-3607 78 18870 TUGGLE AVE 375- 32- 024 DELA CRUZ, SHERWIN PETER L 18870 TUGGLE AVE CUPERTINO CA 95014-3626 79 10510 CULBERTSON Dr 375- 33- 001 CULBERTON PRIME LLC 13428 CHRISTIE DR SARATOGA CA 95070-5103 80 18880 PENDERGAST AVE 375- 33- 044 HONG, GEORGE AND TSE , CINDY 18880 PENDERGAST AVE CUPERTINO CA 95014-3621 81 10657 MORENGO DR 375- 34- 013 ORTIZ, ROSA F ET AL 10657 MORENGO DR CUPERTINO CA 95014-3513 82 10670 MORENGO DR 375- 34- 058 CHANG, SSU-CHIA TRUSTEE & ET AL 10670 MORENGO DR CUPERTINO CA 95014-3514 83 18830 HUNTER WA 375- 35- 001 THOMPSON, LARRY L AND SHIRLEY 40133 CANYON HEIGHTS DR FREMONT CA 94539-3008 84 10650 JOHANSEN DR 375- 36- 008 JUDOPRASETIJO, AGOES H AND 13953 SHADOW OAKS WAY SARATOGA CA 95070-5541 85 10627 CULBERTSON DR 375- 36- 027 MC GRATH PATRICK W 1184 VALELAKE CT SUNNYVALE CA 94089-2032 86 19141 MEIGGS LN 375- 37- 001 XU, HU AND WU , LINA 1301 LASSEN AVE MILPITAS CA 95035-6406 87 10720 S TANTAU AVE 375- 37- 002 QIN, ZUDIAN AND SUN , HAIXIA 10720 S TANTAU AVE CUPERTINO CA 95014-0000 88 10524 S TANTAU AVE 375- 37- 020 LIU, XIONG AND GUO , YAQIONG 10524 S TANTAU AVE CUPERTINO CA 95014-0000 89 10593 JOHANSEN DR 375- 37- 053 BURTZLAFF, JAMES L PO BOX 464 CUPERTINO CA 95015-0464 90 10611 JOHANSEN DR 375- 37- 056 SHINOHARA, YOSHIKAZU AND 10611 JOHANSEN DR CUPERTINO CA 95014-3508 91 891 S TANTAU AVE 375- 38- 044 HUANG, ZERY- KUEN AND YU- MEI 891 S TANTAU AVE CUPERTINO CA 95014-4648 92 947 S TANTAU AVE 375- 38- 051 LIANG, SIDNEY 947 S TANTAU AVE CUPERTINO CA 95014-4601 93 604 MILLER AVE 375- 42- 016 JAN, SEAWAY AND HUNG , CHIA YING604 MILLER AVE CUPERTINO CA 95014-4640 94 605 PHIL CT 375- 42- 017 KEDILAYA, SHASHI AND 605 PHIL CT CUPERTINO CA 95014-4654 135
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CITY OF CUPERTINO
Agenda Item
26-14789 Agenda Date: 3/3/2026
Agenda #: 8.

Subject: Conduct a Noticed Public Hearing to Consider Adopting a Resolution Vacating a Portion of Public Right-of-Way Located Along the Westerly boundary of Mary Avenue (APN 326-27-053).

1. Find the project exempt from the California Environmental Quality Act (CEQA).

2. Adopt Resolution No. 26-024 approving the vacation of a portion of public right-of-way located along the westerly boundary of Mary Ave (APN 326-27-053).

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PUBLIC WORKS DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-5732
TELEPHONE: (408) 777-3354
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Date: March 3, 2026
Subject
Conduct a Noticed Public Hearing to Consider Adopting a Resolution Vacating a Portion of Public Right-of-Way Located Along the Westerly boundary of Mary Avenue (APN 326-27-053) Recommended Action

1. Find the project exempt from the California Environmental Quality Act (CEQA)

2. Adopt Resolution No. 26 -XXX approving the vacation of a portion of public right -of-way located along the westerly boundary of Mary Ave (APN 326-27-053) Background
On February 3, 2026, the City Council adopted Resolution No. 26-016 approving the Architectural & Site Approval Permit (ASA-2025-006) to allow for the development of forty (39) below market rate units and one manager’s unit on the Mary Avenue project site (APN 326 -27-053). Of these units, nineteen (19) will be for residents with intellectual or developmental disabilities.

The Mary Avenue project site is Site ID 10 of the General Plan’s Housing Element, adopted by the City on May 14, 2024, and which the California Department of Housing and Community Development found in substantial compliance with the State Housing Element L aw (Gov. Code § 65580 et seq) on September 4, 2024. The site is in the Garden Gate neighborhood and is located east of Highway 85. Presently, the site is a parcel carved out from 0.79 acres of underutilized right-of-way, owned by the City of Cupertino, adj acent to Highway 85, that includes some on - street parking. Neighboring uses include multi -family residential uses, a dog park, condominiums, and Highway 85. Refer to Attachment A.

To facilitate the project’s construction, the City must vacate this portion of Mary Avenue. “Vacation” of a street means the City would terminate the public interest within this portion of public right-of-way. The California Streets and Highways Code (SHC) requires the City Council to conduct a public hearing and adopt a resolution of vacation . The SHC also requires the following notices to be published and posted:

1. Notice of the hearing on the proposed vacation shall be published for at least two successive weeks prior to the hearing in a daily, semiweekly, or weekly newspaper.

On February 13, 2026, the Cupertino Courier began posting a legal ad notice of the public hearing. 137
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2. At least two weeks before the day set for the hearing, the City shall post conspicuously , notices of the vacation along the line of the street proposed to be vacated. The notices shall be posted not more than 300 feet apart, but at least three notices shall be posted.

On February 13, 2026, staff physically posted four notices at the property as required. Said posting was confirmed through an affidavit filed with the City Clerk.

3. All public entities having any right, title, or interest in the public street being vacated have been notified.

Staff notified the public utility companies (AT&T, Comcast, Cupertino Sanitary District, PG&E, and San Jose Water Company) of the proposed vacation and obtained no-objection letters from each entity.

Additionally, pursuant to Government Code Section 65402(a), the Planning Commission is required to review certain proposed vacations for consistency with the City’s General Plan. On February 10, 2026, the Planning Commission adopted Resolution No. 2026-01 finding that the Mary Avenue public right-of-way vacation (APN 326-27-053) is consistent with the General Plan.

Reasons for Recommendation and Available Options
Staff has determined that adoption of the resolution to vacate the Mary Avenue project site (APN 326-27-053) to facilitate the housing envisioned in the Housing and Land Use Elements of the City’s General Plan can occur without adverse effect. If the City Council d oes not adopt the resolution, the approved development project would not be able to move forward with construction.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

City Work Program (CWP) Item/Description
Yes, FY 21-22
Develop New BMR/ELI Housing: Develop ELI (extremely low income) and BMR housing units for developmentally disabled individuals (IDD) on City-owned property as well as the County- owned sites.

Council Goal:

Housing
California Environmental Quality Act
No California Environmental Quality Act impact.
_____________________________________
Prepared by: Jennifer Chu, Senior Civil Engineer
Reviewed by: Chad Mosley, Director of Public Works
Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – Map of Parcel To Be Vacated
B – Draft Resolution
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RESOLUTION NO. 26-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

VACATING A PORTION OF PUBLIC RIGHT-OF-WAY LOCATED
ALONG THE WESTERLY EDGE OF MARY AVENUE (APN 326-27-053) AS PROVIDED IN SECTIONS 8320-8325 OF

CALIFORNIA STREETS AND HIGHWAYS CODE
_______________________________________________________________________ WHEREAS, the real property at issue is wholly owned by the City of Cupertino and is situated along the westerly edge of Mary Avenue, between Stevens Creek Boulevard and Lubec Street, in the City of Cupertino (APN 326-27- 053) (“Property”). The Property is more particularly described as Parcel 1 shown on that certain Parcel Map filed for record in the Office of the Recorder of the Co
unty of Santa Clara, State of California, on May 2, 2023, in Book 953 of Maps, Pages 53 and 54 (“Parcel Map”), attached hereto and as further described in Exhibit A; and
WHEREAS, all of Parcel 1 contained within the current public right-of-way is depicted on the Parcel Map, which shall be vacated (“Vacation Area”) to allow for the
construction of an affordable housing project identified in the Housing Element of the City’s General Plan as the Mary Avenue project; and WHEREAS, the City previously entered into a Disposition and Development Agreement (“DDA”) pertaining to the Mary Avenue project, which prior decision to enter into the DDA has no binding effect or limitation on the City Council’s ability to exercise its discretion with regard to the current design as to whether the Vacation Area is unnecessary for a present or prospective public use as the
City entered into the DDA with the clear understanding that the DDA is contingent upon the City separately finding the Vacation Area to be unnecessary for
the present or prospective public use , pursuant to California Streets and Highways Code section 8324(b);
WHEREAS, on February 10, 2026, the Planning Commission found the Vacation Area of the proposed vacation to be consistent with the City’s adopted General Plan pursuant to California Government Code section 65402 and adopted Planning Commission Resolution No. 2026-01 so finding; and WHEREAS, t he proposed roadway desig n after t he Vacatio n Ar ea is vacated from the public right-of-way incorporates sidewalks, roadway lanes, and 140
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bicycle lanes that meet all applicable design standards, including requirements for width and materials. The design maintains adequate access throughout the area and does not result in any obstruction to public access; and

WHEREAS, all public utilities having any right, title, or interest in the right-of-way have been notified of the City ’s planned vacation, including AT&T, Comcast, Cupertino Sanitary District, PG&E, and San Jose Water Company , and “no-objection” letters have been obtained from each entity.

WHEREAS, a city may initiate vacation proceedings by noticing a public hearing and posting signs as to the date, time, and place of the public hearing at which the city will consider said vacation, in accordance with California Streets and Highways Code sections 8320; 8322; and 8323; and

WHEREAS, pursuant to California Streets and Highways Code section 8324(a), a public hearing was held on March 3, 2026 at which time the City Council received testimony and evidence from all persons interested in the proposed street vacation who indicated their desire to be heard , from all persons protesting the same who indicated their desire to be heard, and from members of City staff, wherein this City Council considered all of the evidence submitted concerning the proposed vacation of the Vacation Area; and

WHEREAS, the City Council now desires to approve the vacation of the Vacation Aea subject to the reservations , conditions and exemptions set forth herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby find and resolve as follows:

Section 1: The City Council has duly considered the full record before it, including the staff report and presentation, facts, exhibits, public testimony , the findings of the Planning Commission contained in the adopted Planning Commission Resolution No. 2026-001, and other evidence and materials submitted or provided to the Council, in compliance with California Streets and Highways Code section 8324(a), and the City Council understood at the time the Council approved the DDA, that the legal effect of the DDA would be contingent upon independently finding the Vacation Area unnecessary for present or prospective public use.

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Section 2: T he recitals set forth above are found to be true and correct and are incorporated herein by reference.

Section 3: The City has performed an environmental assessment for the Mary Avenue housing project, and the City hereby determines that it falls within the Categorical Exemption set forth in Section 15332 of the Guidelines for Implementation of the California Environmental Quality Act (“CEQA Guidelines”) which exempts Class 32 Infill Development Projects because (a) the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; (b) the proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; (c) the project site has no value, as habitat for endangered, rare or threatened species; (d) approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the site can be adequately served by all required utilities and public services. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project and, specifically, this project does not present any unusual circumstances. The proposed vacation of the Vacation Area does not constitute a separate project under CEQA and is an implementation action within the scope of the affordable housing development project. Based on the whole of the administrative record, the City Council determines the project is categorically exempt from CEQA pursuant to the Class 32 exemption.

Section 4. The City Clerk published notice and posted signs declaring said intention, and the date, time, and place of a public hearing t o be held to consider said vacation of the Vacation Area , in accordance with California Streets and Highways Code sections 8320, 8322, and 8323; and

Section 5. The proposed roadway design incorporates sidewalks, roadway lanes, and bicycle lanes that meet all applicable design standards, including requirements for width and materials. The design maintains adequate access throughout the area and does not result in any obstruction to public access.

Section 6: Based on all the evidence submitted, the Vacation Area as described in the notice of hearing is unnecessary for present or prospective public use, pursuant to California Streets and Highways Code section 8324(b).

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Section 7. The City Council does hereby vacate the Vacation Area, as described and depicted on the Parcel Map.

Section 8. Pursuant to California Streets and Highway Code section 8340(c), the City of Cupertino reserves for the benefit of public utility companies and excepts from the foregoing vacation the permanent public utility easement shown on the Parcel Map, and its correlating rights in connection with such easement existing in, under, or over the Vacation Area, unless quitclaimed or released by the owner thereof. The correlated rights include, but are not limited to, at any time, and from time to time, to excavate for, construct, reconstruct, maintain, operate, replace, remove, renew, inspect and use the public utility facilities, including, but not limited to electric, gas and communication facilities, the ingress to and egress from the public utility facilities, and also the right to trim and cut down trees and other vegetation that may be a hazard to the public utility facilities. The area shall be kept open and free of buildings, structures, wells or other obstructions. .

Section 9. City staff is directed to cause a certified copy of this Resolution, attested by the City Cler k under the seal of the City, to be recorded in the Office of the County Recorder of Santa Clara County, upon notification from the Director of Public Works that the Developer of the Mary Avenue Project, as defined in that certain Disposition and Development Agreement executed on February 3, 2026 and approved by City Council Resolution No. 26-018, has met all precedent conditions as set forth therein.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 3rd day of March, 2026, by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

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SIGNED:

___________
Kitty Moore, Mayor
City of Cupertino

________________________
Date
ATTEST:

_____________
Lauren Sapudar, Acting City Clerk

________________________
Date

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EXHIBIT A

LEGAL DESCRIPTION
Real property in the City of Cupertino, County of Santa Clara, State of California, described as follows:

All of Parcel 1, as shown on that certain Parcel Map filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on May 2, 2023, in Book 953 of Maps, Pages 53 and 54.

APN: 326-27-053
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Exhibit A
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CITY OF CUPERTINO
Agenda Item
26-14859 Agenda Date: 3/3/2026
Agenda #: 9.

Subject: Consider Adopting a Resolution Declaring the Mary Avenue property (APN 326-27-053) Exempt Surplus Land under the California Surplus Land Act.

1. Find the project exempt from the California Environmental Quality Act (CEQA).

2. Adopt Resolution No. 26-025 declaring the Mary Avenue property (APN 326-37-053) to be exempt surplus land pursuant to the provision of the Surplus Land Act codified at California Government Code subsection 54221(f)(1)(F)(i).

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CITY ATTORNEY’S OFFICE

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3403
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Date: March 3, 2026
Subject
Consider Adopting a Resolution Declaring the Mary Avenue property (APN 326-27-053) Exempt Surplus Land under the California Surplus Land Act

Recommended Actions:

1. Find the project exempt from the California Environmental Quality Act (CEQA)

2. Adopt Resolution No. 26-XXX declaring the Mary Avenue property (APN 326-37-053) to be exempt surplus land pursuant to the provision of the Surplus Land Act codified at California Government Code subsection 54221(f)(1)(F)(i) Background
The Mary Avenue property (APN 326 -27-053) is located in the Garden Gate neighborhood, east of Highway 85 and is depicted on Attachment A to the Resolution attached hereto. The Mary Avenue project site is listed as Site 10 of the Housing Element contained in the City’s General Plan, which the City Council adopted in May 2024. Thereafter, the State’s Housing and Community Development Department found the City’s Housing Eleme nt to be in substantial compliance with State Housing Element Laws (Gov. Code § 65580 et seq).

The real property at issue is situated along the westerly edge o f Mary Avenue, between Stevens Creek Boulevard and Lubec Street , in the City of Cupertino (APN 326-27-053) (“Property”) and includes 0.79 acres of right-of-way, owned by the City of Cupertino, including some on -street parking. Neighboring uses include multi -family residential uses, a dog park, condominiums, and Highway 85.

On February 3, 2026, the City Council voted to enter into a contingent Development and Disposition Agreement (“DDA”) with Mary Avenue, L.P., a California limited partnership (“Developer”). Under the DDA, certain contingencies must be satisfied before the C ity may transfer the City-owned property to the Developer, including finding the Property to be exempt surplus land under the state’s Surplus Land Act, and vacating 0.79 acres of public right -of-way contained within the project site. Only after satisfaction of these contingencies, may a transfer of property be perfected.

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The City Council adopted Resolution No. 26 -016 approving the Architectural & Site Approval Permit (ASA-2025-006) to allow for the development of the Mary Avenue project, a 40-unit project on the Mary Avenue project site (“Project”). Thirty-nine (39) of those units will be below market rate with nineteen (19) for residents with intellectual or developmental disabilities. One unit is reserved for a manager with no rent charged.

Additionally, pursuant to Government Code Section 65402( c), the Planning Commission reviewed the proposed disposition of the Property . On February 10, 2026, the Planning Commission adopted Resolution No. 2026-01finding that disposition of the Mary Avenue project site (APN 326-27-053) to be consistent with the General Plan.

Surplus Land Act (“SLA”) Exemption
Pursuant to California Department of Housing and Community Development (“HCD”) Regulations Section 103(c), the governing board of a local agency may declare the property to be “exempt surplus land” at a regular public meeting and such declaration must be supported by written findings demonstrating that the land meets one of the statutory exemption requirements.

The Project qualifies for a statutory exemption pursuant to Government Code Section 54221(f)(1)(F) as the land will be developed for a housing development that restricts 100 percent of the residential rental units to households of low, very low, and extremely low income for a minimum of 99 years , meeting the thresholds of the exemption. In no event shall the maximum affordable rent level be higher than 20 percent below the median market rents or sales prices for the neighborhood in which the site is located. An affordable housing covenant which shall set forth these requirements shall run with the land.

Adoption of a declaration of exempt surplus land satisfies City’s statutory obligations under the SLA and authorizes the City to proceed with the disposition process for the Property. Transfer of title will not occur until the closing, and after all conditions set forth in the DDA have been satisfied.

Upon adoption of the resolution declaring the Property as exempt surplus, City must send the resolution and the Disposition and Development Agreement (“DDA”) to HCD for review. HCD has 30 days to respond to City confirming the Property is exempt under the SLA. Receipt of the HCD notice is a condition precedent to City’s obligations in the DDA.

Reasons for Recommendation and Available Options
Staff recommends adoption of the resolution declaring the Property to be exempt surplus land to facilitate the housing envisioned in the Housing and Land Use Elements of City’s General Plan without adverse effect. Such findings satisfy the City’s procedural obligations under the Surplus Land Act and authorize City to proceed toward disposition of the Property in accordance with the Project’s financing timeline and regulatory commitments. 149
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Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

City Work Program (CWP) Item/Description
Yes, FY 21-22
Develop New BMR/ELI Housing: Develop ELI (extremely low income) and BMR housing units for developmentally disabled individuals (IDD) on City-owned property as well as the County- owned sites.

Council Goal:

Housing
California Environmental Quality Act
No California Environmental Quality Act impact.
_____________________________________
Prepared by: Floy Andrews, Interim City Attorney
Reviewed by: Chad Mosley, Director of Public Works
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – Map of Parcel 1
B – Draft Resolution

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RESOLUTION NO. 26-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL DECLARING

CERTAIN CITY-OWNED REAL PROPERTY LOCATED AT MARY AVENUE, IN THE CITY OF CUPERTINO (APN: 326-27-053) TO BE EXEMPT SURPLUS

LAND UNDER THE SURPLUS LAND ACT
WHEREAS, the real property at issue is situated along the westerly edge of Mary Avenue, between Stevens Creek Boulevard and Lubec Street , in the City of Cupertino (APN 326-27-053) (“Property”); is more particularly described as Parcel 1 shown on that certain Parcel Map filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on May 2, 2023, in Book 953 of Maps, Pages 53 and 54 (“Parcel Map”) , attached hereto and as further shown in Exhibit A; and is wholly owned in fee simple by the City of Cupertino; and WHEREAS, the City of Cupertino (“City”) is considering issuing a declaration that the Property is “exempt surplus land” to allow the Property to be developed as the Mary Avenue housing project , which is included in t he City of Cupertino General Plan (Community Vision 2015 -2040) and the associated Housing Element, which lists the Property as priority housing Site 10; and WHEREAS, the Housing Element indicates that priority housing Site 10 is a new parcel carved out from unused right-of-way owned by the City of Cupertino and adjacent to Highway 85 that includes on -street parking. The City’s Housing Element anticipates the disposition of the Property, including the vacation of the on-street parking for the purpose of developing a 40 -unit, two -story affordable (100% Low and Very Low Income) housing project, consisting of 39 below market residential units, of which 19 units will be reserved for residents with intellectual or developmental disabilities, and one manager’s unit; and WHEREAS, the Surplus Land Act (California Government Code section 54220 et seq.) governs the disposition of a city’s surplus land and imposes upon a city the requirement that the city declare the land to be either “surplus land” or “exempt surplus land” under California Government Code section 54221(b)(1), and if not exempt, the city must comply with certain noticing procedures befo re disposing of the surplus land; and
WHEREAS, if surplus land meets the specific conditions for the exemption in the Surplus Land Act , codified at California Government Code subsection 152
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Resolution No. __________________
Page
54221(f)(1)(F)(i) (the “Exemption”) , the city is relieved of the t hose noticing procedures, and
WHEREAS, that Exemption applies if (i) the surplus land is to be used for the development of a housing project that restricts 100 percent of the residential rentable units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households at an affordable rent for at least 55 years, as well as caping the maximum affordable rent at less than 20 percent below of the median market rents for the neighborhood in which the housing is located ; and (ii) a covenant or restriction declaring those restrictions is recorded against the Property , which covenant must run with the land and be enforceable against the Property and the owner of the Property during the term of the covenant; and
WHEREAS, the City previously entered into a Disposition and Development Agreement (the “DDA”) pertaining to the Mary Avenue housing project, which prior decision to enter into the DDA has no binding effect on the City Council’s ability to exercise its discretion with regard to the current decision of whether to declare the land to be exempt surplus land as the City entered into the DDA with the clear understanding that the DDA is contingent upon the City separately finding the land to be exempt surplus land under California Government Code section 54221(b)(1);
WHEREAS, the City now desires to declare the Property to be “ exempt surplus land” as the Property is not necessary for the City’s use and the conditions for the Exemption will be met, as the Property is slated to be conveyed to a California non-profit limited partnership, Mary Avenue L.P., that plans to develop the Project as 100% affordable housing , which satisfies the requirements of the Exemption including entering into a Regulatory Agreement containing covenants so restricting the Property, which will be recorded against the Property and will be enforceable against any owner who violates the covenant and each successor in interest who continues the violation;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino does hereby find and report as follows:

Section 1: The City Council has duly considered the full record before it, including the staff report and presentation, facts, exhibits, public testimony and other evidence and materials submitted or provided to the Council. Furthermore, the 153
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Resolution No. __________________
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recitals set forth above are found to be true and correct and are incorporated herein by reference.

Section 2: The City has performed an environmental assessment for the Mary Avenue housing project, and the City hereby determines that it falls within the Categorical Exemption set forth in Section 15332 of the Guidelines for Implementation of the California Environmental Quality Act (“CEQA Guidelines”) which exempts Class 32 Infill Development Projects because (a) the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; (b) the proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; (c) the project site has no value, as habitat for endangered, rare or threatened species; (d) approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the site can be adequately served by all required utilities and public services. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project and, specifically, this project does not present any unusual circumstances . The proposed declaration of exempt surplus land does not constitute a separate project under CEQA and is an implementation action within the scope of the affordable housing development project. Based on the whole of the administrative record, the City Council determines the project is categorically exempt from CEQA pursuant to the Class 32 exemption.

Section 3. The Property is not necessary for the City’s use, pursuant to California Government Code section 54221(b)(1) as 1) the City has previously designated the property for development of a 100 percent affordable housing project with dedicated units for persons with intellectual or developmental disabilities, and 2) the portions of the current public right -of-way which will be vacated (“Vacation Area”) proposed roadway design containing portions of the public --way after the Vacation Area is vacated from the public right -of-way incorporates sidewalks, roadway lanes, and bicycle lanes that meet all applicable design standards, including requirements for width and materials. The design maintains adequate access throughout the area and does not result in any obstruction to public access; and
Section 4. In accordance with state law, based on the evidence in the public record, the Property will developed as a 100 percent affordable housing project with all rentable residential units restricted to persons and families of low or moderate 154
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Resolution No. __________________
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income, such that at least 75 percent of the rentable residential units will be restricted to lower income households at an affordable rent for more than 55 years and in no event shall the maximum affordable rent level be higher than 20 percent below the median market rents for the local neighborhood, in compliance with the exemption codified at California Government Code subsection 54221(f)(1)(F)(i).

Section 5: The City’s General Plan and associated Housing Element explicitly anticipate the disposition of the Property, including vacation of the on -street parking for the purpose of developing a 40 -unit, two-story affordable (100% Low and Very Low Income) housing project, consisting of 39 below market residential units, of which 19 units will be reserved for residents with intellectual or developmental disabilities, and 1 manager’s unit.

Section 6: The proposed roadway design after development incorporates sidewalks, roadway lanes, and bicycle lanes that meet all applicable design standards, including requirements for width and materials. The design maintains adequate access throughout the area and does not result in any obstruction to public access.

Section 7: The Property is “exempt surplus land”, as the Property is to be conveyed in fee to a nonprofit developer for the development of affordable housing that will be governed by a Regulatory Agreement , a ttached hereto as Attachment B , in accordance with the requirements of California Government Code section 54221(f)(1)(F)(i), that shall be recorded against the Property when the Property is transferred to the developer and which (i) restricts the affordability of the residential rental units for 99 years; (ii) prevent s the maximum affordable rent level from being higher than 2 0 percent below the median market rents for the neighborhood in which the site is located, and (iii) shall run with the land and be enforceable against the Property and any owner of the Property who violates the covenant.

Section 8: The City Manager or her designee is authorized to do all things which she may deem necessary or proper to effectuate the purposes of this Resolution.

Such actions include, but are not limited to , filing appropriate information with the California Department of Housing and Community Development in accordance with the Act.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 3rd day of March, 2026 by the following vote:
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Resolution No. __________________
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Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Lauren Sapudar, Acting City Clerk
________________________
Date
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Exhibit A
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CITY OF CUPERTINO
Agenda Item
25-14459 Agenda Date: 3/3/2026
Agenda #: 10.

Subject: Acceptance of City Manager’s Mid-Year Financial Report for Fiscal Year 2025-26; Approval of Budget Modification increasing appropriations by $663,616 and revenues by $149,578.

1. Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2025-26.

2. Adopt Resolution No. 26-026 approving Budget Modification No. 2526-433, increasing appropriations by $663,616 and revenues by $149,578.

CITY OF CUPERTINO Printed on 2/26/2026Page 1 of 1
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ADMINISTRATIVE SERVICES DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Meeting: March 3, 2026

Subject
Acceptance of City Manager’s Mid-Year Financial Report for Fiscal Year 2025-26; Approval of Budget Modification increasing appropriations by $663,616 and revenues by $149,578

Recommended Action

1. Accept the City Manager’s Mid-Year Financial Report for Fiscal Year 2025-26

2. Adopt Resolution No. 2 6-XXX approving Budget Modification No. 2526-433, increasing appropriations by $663,616 and revenues by $149,578

Executive Summary
The Mid-Year Financial Report for Fiscal Year (FY) 2025 -26 provides an update on the City’s financial status as of December 31, 2025. The City has updated its 10-Year Financial Forecast to reflect revised revenue and expenditure assumptions, establishing a new baseline projection as well as a second scenario incorporating the proposed 36% increase to the Sheriff’s contract. Under the revised scenario, the City anticipates ongoing structural deficits beginning in FY 20 26-27. Additional details are provided l ater in this report.

The FY 202 5-26 Amended Budget across all funds as of Mid-Year is $228.9 million, increasing from an adopted budget of $136.1 million due to carryovers and encumbrances from the last fiscal year, in addition to Council-approved budget adjustments in the first two quarters of the fiscal year.

As of Mid-Year FY 2025-26, General Fund revenue was $0.8 million, or 2%, higher than Mid-Year FY 2024-25, primarily due to the receipt of a $3.7 million transportation grant from Apple . The increase is also attributed to the timing of tax sharing agreement payments which led to higher sales taxes in the first half of the year; the first two quarters of sales tax rebates will be paid and reflected in third quarter report. These increases are offset by a decrease in Other Financing Sources primarily due to revenues received from the sale of the Byrne property in the prior mid-year period. Mid-Year expenditures were $4.1 million, or 7% lower than last year, primarily due to a City Council approved one - 159
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2 time Additional Discretionary Payment to CalPERS to address the City’s Unfunded Accrued Liability retirement costs in the prior mid-year period. This decrease is offset by increases in the following areas: restart annual Capital Reserve funding transfer , legal services, law enforcement contract costs, and community shuttle rate increases/increased ridership.

Key recommendations from the report include the following proposed budget adjustments:

• Legal Services costs due to the emergence of new and unforeseen legal matters • Control Room Build - Fund Transfer from General Fund to Internal Service Fund (PEG Funded)

Reasons for Recommendation
Background
On June 3, 202 5, the City Council adopted the FY 2025 -26 Adopted Budget, a $136.1 million spending plan funded by $133.7 million in revenue and $ 2.4 million in fund balance. The adopted budget reflected a $ 68,966 increase from the proposed budget as illustrated below.

Budget Actions Amount
Proposed Budget & Capital Improvement Program (Including Transfers) 135,997,435$
Final Budget Hearing & Adoption
Operating Changes 68,966
FY 2025-26 Adopted Budget 136,066,401$
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3 As described in the City Manager’s First Quarter Financial Report, the budget was revised to account for encumbrances and carryover appropriations . As part of the FY 2024 -25 year-end close, additional funds were carried forward to FY 2025-26, amounting to $18.2 million in encumbrances and $68.3 million in budget carryovers. 1 The largest encumbrances were for Capital Projects ($8.2 million), and the largest carryovers were for General Fund ($28.1 million). Furthermore, the FY 20 25-26 Amended Budget includes Council-approved budget adjustments from July 1 to December 31 , 202 5, totaling $228,948,923 across all fund s primarily due to negotiated increases for all bargaining groups. Please refer to Attachment C for details on the carryovers.

The amended budget at the end of mid-year is $228.9 million, funded with $186.2 million in revenue and $42.7 million in fund balance. The amended budget is the adopted budget, plus encumbrances, carryovers, and Council -approved budget adjustments . The reflection of carryovers and encumbrances in the amended budget is a standard practice in municipal budgeting and aligns with the amounts in previous years, which have been approximately $80 million. Carryovers and encumbrances are appropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations.

Mid-Year Summary of Budget Adjustments by Fund

1 Encumbrances are outstanding commitments tied to unfilled purchase orders or contracts, which are rolled over to the following fiscal year until those obligations are fulfilled or terminated. Budget carryovers are unencumbered funds for unfinished projects carried over to the following fiscal year to be spent for the same purpose for which they were approved.

Fund
FY 2025-26
Adopted
Budget Carryovers Encumbrances
Adjustments
Approved in 1st
and 2nd Quarters
FY 2025-26 Amended
Budget as of
December 31, 2025
General 99,189,741 28,105,391 7,162,543 3,261,850 137,719,525 Special Revenue 10,810,122 17,269,837 1,604,982 135,181 29,820,122 Debt Service 2,676,600 - - - 2,676,600 Capital Projects 4,225,000 22,691,140 8,198,536 2,538,284 37,652,960 Enterprise 9,153,170 181,612 535,558 123,005 9,993,345 Internal Service 10,011,768 96,963 712,952 264,688 11,086,371 Total All Funds 136,066,401$ 68,344,943$ 18,214,571$ 6,323,008$ 228,948,923$ 161
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4 General Fund
Forecast
The updated General Fund forecast, reflecting carryovers from the prior fiscal year and Council-approved appropriations through the end of the second quarter, remains largely consistent with the FY 2025 -26 Adopted Budget’s forecast. Major appropriation changes are summarized in Attachment C and discussed in greater detail in the Background section of this report.

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5 Under the updated baseline assumptions, the City’s 10-year forecast (FY 2025-26 through FY 2034-35) reflects a structurally balanced budget for eight years, through FY 2032 -33.

However, the final three years of the forecast now reflect structural deficits, compared to the prior forecast which showed deficits only in the last two years.

The updated forecast does not include the following:
- Additional projected costs associated with the City Hall project - Extension of the Utility Users Tax (UUT), which is set to sunset in FY 2030-31 - Potential revenue measures currently under Council discussion (next scheduled discussion: March 17)
- The proposed 36% increase to the Sheriff’s contract
- Potential business license revenue increase as a result from the City’s amnesty program

Although sales tax revenues are trending stronger than budgeted, staff recommends waiting until the third quarter, when additional disbursement data has been received from the California Department of Tax and Fee Administration (CDTFA) , before proposing any formal revenue adjustments.

This updated forecast reflects the City’s ongoing efforts to align expenditures with sustainable revenue levels following the $30 million CDTFA settlement. Over the past two fiscal years, the City implemented approximately $23.8 million in ongoing reductio ns, including staffing realignments, materials and contract reductions, transfer adjustments, and capital reserve deferrals. Additional structural refinements — including updated 163
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6 vacancy assumptions, property tax trends, franchise fee projections, water lease revenue, and the $10 million CalPERS Additional Discretionary Payment (ADP) — have stabilized near-term fiscal conditions.

However, even with these efforts, structural pressure reemerges in the later years of the forecast. The scheduled sunset of the UUT in FY 2030-31 and the absence of new ongoing revenues create long-term fiscal vulnerability. As the City moves forward in th e budget process, continued focus on controlling ongoing expenditures and prioritizing one -time uses of surplus funds will be critical to maintaining fiscal stability.

Forecast - Sheriff’s Contract Scenario

A second forecast scenario is provided below incorporating the proposed 36% increase to the Sheriff’s contract beginning in FY 2026-27.

Under this scenario, the City would experience structural deficits across all forecast years.

Because the proposed increase represents an ongoing expenditure adjustment rather than a one-time cost, it would immediately shift the City from near-term structural balance into sustained deficits absent offsetting reductions or new revenue.

Staff continues to coordinate regionally with Saratoga and Los Altos Hills and engage Santa Clara County to better understand the methodology changes contributing to the increase, including reallocation of Records and Investigative Services, adjustments to productive hour assumptions, updated sworn compensation costs, and expanded overhead allocations.
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7 If implemented as proposed, the contract increase would significantly accelerate the City’s structural imbalance and require difficult policy decisions related to service levels, expenditure reductions, or revenue enhancements. Staff will continue refining long-term projections, evaluating cost containment options, and returning to Council with updated financial scenarios as negotiations and policy discussions evolve.

General Fund at Mid-Year

4-Year Comparison of Revenues, Expenditures, and Changes to Fund Balance ($ in millions)

FY 2025-26 General Fund Mid-Year Update
The General Fund's year-end actuals show that the City’s revenues have historically exceeded expenditures, leading to the increase in fund balance. In addition, the City's encumbrance and budget carryover process typically led to increases in year-end fund balance. Historically, when this was not the case, it was not due to a structural deficit but the transfer of excess fund balance from the General Fund to the Capital Reserve per the City's Fund Balance policy. By continuing to monitor and manage its financial resources effectively, the City can ensure that it maintains a healthy fund balance in the General Fund.

Revenue
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8 General Fund revenue is $0.8 million, or 2%, higher than the same time last year due to changes in the City’s revenue sources as shown in the following table.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Revenues General Fund

Sales Tax revenue as of mid-year totals $7.8 million, representing a 24% increase compared to the second quarter of the prior fiscal year. This increase is primarily attributable to the timing of payments related to the City’s tax sharing agreements. While the agree ments were in effect in the prior year, associated rebates had not yet been paid during the comparable period. The rebates for the current fiscal year will be paid and reflected in the third quarter.

Property Tax revenue is slightly higher than last year by approximately $142,000, or 1%.

According to the HdL, the City’s property tax consultant, the citywide growth in value in the 2025-26 assessment roll is $1.21 billion, an increase of 3.6%. With the first 7 months of sales data processed for 2025, Single Family Residentials are selling for 4.57% less than in the previous calendar year. Prices for the full calendar year 2023 increased 10.24%. Prices are still being driven by higher interest rates and fewer properties being offered for sale.

Staff will continue to monitor this top revenue source and may recommend adjustments as part of the Third Quarter Financial Report.

The City’s property tax base remains strong , and HdL is currently projecting growth in property taxes over the next five years, as shown in the table below.

Revenue Category
Mid-Year
2025
Mid-Year
2026 Variance ($) Variance (%)
05 - Sales tax 6,253,234 7,771,677 1,518,444 24% 10 - Property tax 9,533,057 9,675,458 142,401 1% 15 - Transient occupancy 2,517,307 2,643,176 125,869 5% 20 - Utility tax 1,747,222 1,671,264 (75,958) -4% 25 - Franchise fees 828,043 1,024,238 196,196 24% 30 - Other taxes 903,132 592,468 (310,663) -34% 35 - Licenses and permits 2,704,260 3,174,439 470,179 17% 40 - Use of money and property 5,620,126 4,274,815 (1,345,311) -24% 45 - Intergovernmental revenue 1,593,094 4,285,139 2,692,045 169% 50 - Charges for services 7,219,090 7,013,364 (205,726) -3% 55 - Fines and forfeitures 157,093 99,778 (57,315) -36% 60 - Miscellaneous 1,445,733 390,653 (1,055,080) -73% 65 - Transfers in 15,000 15,000 - 0%
70 - Other financing sources 1,331,275 77,921 (1,253,355) -94% Total 41,867,665$ 42,709,392$ 841,726$ 2% FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28
31,223,141 32,324,317 33,606,651 35,024,886 36,531,087 166
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9 Transient Occupancy Tax (TOT) revenue increased by $126,000, or 5%, compared to the prior mid-year period, primarily due to higher average daily room rates. The chart below illustrates recent trends in both average daily rates and occupancy levels. While occupancy experienced a slight decline in 2025 compared to 2024, the increase in room rates more than offset the decrease, resulting in overall revenue growth.

Average Daily Rates and Occupancy Rates by Month
Hotels in Cupertino

Utility Tax (UUT) decreased by approximately $76,000, or 4%, primarily due to the timing of payments recorded.

Franchise Fees increased by approximately $196,000, or 24%, due to fluctuations in construction activity and billing cadence.

Other Taxes decreased by approximately $311,000, or 34%, primarily due to the transition of business license administration to HdL and the timing of remittances being received and recorded by the City. This decrease is timing-related rather than structural. Staff will continue to closely monitor this revenue cat egory to ensure collections are aligned with expectations in future quarters.

Licenses and Permits increased by approximately $470,000, or 17%, due to an increase in the number of permits received this mid-year period.

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10 Use of Money and Property decreased by approximately $1.3 million, or 24%, largely due to the reversal of the $2.8 million mark -to-market adjustment recorded as a year -end entry in FY 2023 -24, resulting in a temporary positive revenue impact in the prior mid -year period FY 2024-25.

Intergovernmental Revenue increased by $2.7 million, or 169%, over the same period last year primarily due to the receipt of a $3.7 million transportation grant from Apple, offset by less monies received for state grants this mid-year period.

Charges for Services decreased by $206,000, or 3%, driven mainly by decreases in costs for general service fees related to library maintenance, offset by an increase in planning fees and cost allocation plan methodology.

Fines and Forfeitures decreased by $57,000, or 32%, due to an increase in revenues related to parking fines compared to the same period last year.

Miscellaneous Revenue decreased by approximately $1.1 million, or 73%, primarily due to the timing of the Apple donation for sheriff services.

Transfers In remained consistent with the prior mid-year period.

Other Financing Sources decreased by $1.3 million, or 94%, due to revenues received from the sale of the Byrne property in the prior mid-year period.

Expenditures
Expenditures in the General Fund decreased by $4.1 million, or 7%, when compared to the same time last year. The following table shows the differences between General Fund expenditures as of the mid-year in the current fiscal year and the prior fiscal year:

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Expenditures General Fund

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11 Salary increased by approximately $0.6 million, or 6%, from the previous mid-year period due to contract negotiation increases in the current mid-year period.

Benefits decreased by approximately $10.5 million, or 69%, primarily due to a City Council approved one-time Additional Discretionary Payment to CalPERS to address the City’s Unfunded Accrued Liability retirement costs in the prior mid-year period.

Materials remained relatively consistent with the prior mid-year period.

Contract Services increased by approximately $1.4 million, or 10%, primarily driven by outsourcing legal services, law enforcement contract costs, and community shuttle rate increases and increased ridership.

Cost Allocation remained relatively consistent with the prior mid-year period.

Capital Outlay increased by approximately $48,000, or 149%, due to a building maintenance project at the service center.

Special Projects increased by approximately $620,000, or 100%, due to fluctuations in one- time expenditures. It’s important to note that staff has not adjusted projects in this category to align with the Special Project policy thus expenses in this category include all special projects, including development and City Work Program items.

Contingencies increased by $4,000, or 144%. As of December 31, 2025, the City Manager’s Discretionary Fund has been used for Property Appraisal Services for 10480 Finch Avenue.

Transfers Out increased by approximately $ 3.2 million , or 43%, primarily due to an increase in transfers to restart annual Capital Reserve funding transfer. Interfund transfers are the movement of cash between one or more funds. As part of the Adopted Budget process, transfers from the General Fund to other City funds serve as operating subsidies to ensure each fund has a positive fund balance at the end of the fiscal year.

Expenditure Category
Mid-Year
2025
Mid-Year
2026 Variance ($) Variance (%)
05 - Employee compensation 10,566,467 11,165,494 599,026 6% 10 - Employee benefits 15,264,471 4,799,606 (10,464,865) -69% 15 - Materials 2,813,766 2,963,067 149,300 5% 20 - Contract services 14,256,813 15,613,313 1,356,499 10% 25 - Cost allocation 5,319,290 5,549,229 229,939 4% 30 - Capital outlays 32,349 80,484 48,135 149% 31 - Special projects 623,226 1,243,515 620,290 100% 35 - Contingencies 3,035 7,400 4,365 144% 45 - Transfer out 7,403,168 10,594,653 3,191,485 43% 50 - Other financing uses 247,521 467,509 219,988 89% Total 56,530,107$ 52,484,270$ (4,045,837)$ -7% 169
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12 Other Financing Uses increased by approximately $220,000, or 89%, due to a higher volume of on-call contracts in the Community Development Department for plan reviews and inspections, and an increase in special contracts for current planning. Special contracts are for vendors that do not have on -call master agreements, typically for larger projects and for contracts with larger dollar amounts.

Special Revenue Funds
Revenue
Special Revenue Funds revenue is $0.6 million, or 9%, lower than the same time last year primarily due to a decrease in use of money and property and transfers in.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Revenues Special Revenue Funds

Other Taxes increased by approximately $90,000, or 104%, primarily due to an increase in storm drain fees and park dedication fees received compared to the prior mid-year period.

Use of Money and Property decreased by approximately $665,000, or 60%, primarily due to no mark-to-market adjustment, mirroring the impact seen in the General Fund.

Intergovernmental Revenue increased by approximately $441,000, or 13%, due primarily to Measure B Transportation fund street pavement maintenance.

Charges for services increased by approximately $ 11,000, or 20%, primarily due to engineering fees revenues received for traffic impact and tree funds citywide.

Fines and forfeitures were relatively unchanged from last year.

Miscellaneous revenues increased by $787 or 394% primarily due to increase i n miscellaneous revenue and admin fees.

Transfers In decreased by approximately $0.5 million, or 20%, due to decreased transfers in from general fund for roadway safety improvements, Bollinger Road corridors and non departmental for Bridge rehab minor.

Revenue Category
Mid-Year
2025
Mid-Year
2026 Variance ($) Variance (%)
30 - Other taxes 86,517 176,480 89,963 104% 40 - Use of money and property 1,116,291 451,563 (664,728) -60% 45 - Intergovernmental revenue 3,527,541 3,968,843 441,302 13% 50 - Charges for services 54,491 65,439 10,948 20% 55 - Fines and forfeitures 0 208 208 N/A 60 - Miscellaneous 200 987 787 394%
65 - Transfers in 2,595,150 2,067,000 (528,150) -20% Total 7,380,189$ 6,730,519$ (649,670)$ -9% 170
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13 Expenditures
Special Revenue Funds expenditures are $0.2 million, or 4%, higher than the same time last year due primarily to increases in contract services, capital outlays and transfers out.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Expenditures Special Revenue Funds

Salary decreased by approximately $15,000, or 2%, due to vacancy savings.

Benefits decreased by $62,000 or 14%, from last year due to decreases in retirement costs.

Materials decreased by $5,000, or 2%, due to decreases in small tools and equipment and general supplies expenditures compared to the same period last year.

Contract Service s increased by approximately $ 24,000, or 11%, primarily due to environmental storm drain maintenance and BMR housing services.

Cost Allocation decreased by approximately $10,000, or 1%, primarily due to decrease in City Manager, Finance and Human Resources CAP Charges.

Capital Outlays increased by approximately $74,000, or 6%, largely attributed to SB1 Road expenditures.

Special Projects decreased by approximately $ 31,000, or 6%, due to decreases in the rainwater capture, CUSD joint use cost share, and annual asphalt project.

Transfers Out increased by $206,032, or 1,374%, due to transfers for McClellan Road Separated Bike Ph3 and Bollinger Road Corridor CIP projects.

Debt Service Funds
Revenue
Debt Service Funds revenue is similar to last year.

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14 Comparison of FY 2024-25 and FY 2025-26 Mid-Year Revenues Debt Service Funds

Expenditures
Debt Service Funds expenditures are similar to last year.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Expenditures Debt Service Funds

Capital Projects Funds
Revenue
Capital Projects Funds revenue is lower than last year primarily due to decreases in use of money and property and transfers in from the general fund.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Revenues Capital Projects Funds

Capital Projects funds differ from year to year based on projects that have been approved or worked on in a given fiscal year.

Expenditures
Capital Projects Funds expenditures are $6.8 million, or 64%, lower than last year due to a decrease in transfers to the capital reserve to fund capital projects.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Expenditures Revenue Category
Mid-Year
2025
Mid-Year
2026 Variance ($) Variance (%)
65 - Transfers in 2,676,200 2,676,600 400 0% Total 2,676,200$ 2,676,600$ 400$ 0% Expenditure Category
Mid-Year
2025
Mid-Year
2026 Variance ($) Variance (%)
20 - Contract services 1,500 1,500 - 0% 40 - Debt services 280,600 238,300 (42,300) -15% Total 282,100$ 239,800$ (42,300)$ -15% Revenue Category
Mid-Year
2025
Mid-Year
2026 Variance ($) Variance (%)
40 - Use of money and property 657,685 - (657,685) -100% 45 - Intergovernmental revenue 21,365 212,230 190,865 893% 65 - Transfers in 7,785,000 4,244,316 (3,540,684) -45% Grand Total 8,464,050 4,456,546 (4,007,504) -47% 172
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15 Capital Projects Funds

Capital Projects funds differ from year to year based on projects that have been approved or worked on in a given fiscal year.

Enterprise Funds
Revenue
Enterprise Funds revenue is $593,000, or 17%, higher than the same time last year due primarily to an increase in transfer in.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Revenues Enterprise Funds

Use of Money and Property decreased by approximately $0.2 million, or 40%, primarily due to decrease in mark-to-market cash in bank . Balances will continue to flow and are anticipated to end within projections.

Charges for services increased by approximately $42,000, or 2%, primarily due to enterprise services, engineering, and other service fees.

Transfers In increased by approximately $0.7 million due to transfers from t he General Fund.

Expenditures
Enterprise Funds expenditures are $0.2 million, or 6%, lower than the same time last year due primarily to a decrease in special projects and employee salary and benefits.

Expenditure Category Mid-Year
2025
Mid-Year
2026
Variance ($) Variance (%)
20 - Contract services 9,690 5,526 (4,164) -43% 30 - Capital outlays 2,098,518 1,815,741 (282,777) -13% 45 - Transfer out 8,547,580 2,038,284 (6,509,296) -76% Grand Total 10,655,788$ 3,859,551$ (6,796,237)$ -64% Revenue Category
Mid-Year
2025
Mid-Year
2026 Variance ($) Variance (%)
40 - Use of money and property 427,282 257,253 (170,029) -40% 45 - Intergovernmental revenue - - - N/A 50 - Charges for services 2,505,137 2,547,204 42,066 2% 65 - Transfers in 514,000 1,235,000 721,000 140% Grand Total 3,446,419$ 4,039,456$ 593,037$ 17% 173
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16 Comparison of FY 2024-25 and FY 2025-26 Mid-Year Expenditures Enterprise Funds

Salary and Benefits decreased by approximately $ 172,000, or 12%, primarily due to vacancies.

Materials increased by appr oximately $ 42,000, or 20%, prim arily due to Cal Recycle payment program administration expenses.

Contract Services decreased by approximately $14,000, or 1%, primarily due to decrease in expenses in general services for environmental programs resource recovery and bank charges.

Cost Allocation increased by approximately $35,000, or 4%, primarily due to increase IT reimbursement and Finance cost allocation.

Special Projects decreased by approximately $95,000, or 87%, due to projects that differ in scope and timing from year to year.

Internal Service Funds
Revenue
Internal Service Funds revenue is $0.5 million, or 9%, higher than the same time last year due to increased charges for services and transfers in.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Revenues Internal Service Funds

Use of Money and Property decreased by approximately $87,000, or 47%, due to decrease in mark-to-market adjustments.

Expenditure Category Mid-Year
2025
Mid-Year
2026
Variance ($) Variance (%)
05 - Employee compensation 1,008,717 895,439 (113,278) -11% 10 - Employee benefits 403,365 344,362 (59,002) -15% 15 - Materials 204,328 246,120 41,792 20% 20 - Contract services 1,208,854 1,194,547 (14,307) -1% 25 - Cost allocation 788,715 823,281 34,566 4% 31 - Special projects 110,165 14,602 (95,563) -87% Grand Total 3,724,144$ 3,518,351$ (205,792)$ -6% Revenue Category
Mid-Year
2025
Mid-Year
2026 Variance ($) Variance (%)
40 - Use of money and property 184,223 97,489 (86,733) -47% 50 - Charges for services 2,408,179 2,712,128 303,948 13% 60 - Miscellaneous - 4,295 4,295 N/A 65 - Transfers in 2,380,398 2,616,053 235,655 10% 70 - Other financing sources 251,991 276,764 24,773 10% Total 5,224,791$ 5,706,729$ 481,938$ 9% 174
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17 Charges for Services increased by approximately $3 03,000, or 1 3%, primarily due to Innovation Technology related Cost Allocation charges.

Miscellaneous remains relatively unchanged from the prior fiscal year.

Transfers In increased by approximately $236,000, or 10%, due to increase in compensated absence and retiree medical expenses.

Other Financing Sources increased by approximately $25,000 due to workers compensation charges being billed to departments and received as revenue in this fund.

Expenditures
Internal Service Funds expenditures are $0.9 million, or 26%, higher than the same time last year due primarily to an increase in materials, salaries, and cost allocation offset by decrease in contract services.

Comparison of FY 2024-25 and FY 2025-26 Mid-Year Expenditures Internal Service Funds

Salary and Benefits increased by approximately $288,000, or 15%, due to filling vacancies and increase in employee health insurance and retirees health insurance premiums.

Materials increased by $ 265,000, or 71%, main ly due to an increase in small tools and equipment costs, software, and conference and training expenses.

Contract Services decreased approximately $117,000, or 13%, largely due to a decrease in general service agreements.

Cost Allocation increased by approximately $284,000, or 186%, primarily due to Human Resources and Finance related CAP charges.

Special Projects increased by approximately $193,000, or 77%, primarily due to fixed asset acquisition.

Budget Adjustment Requests
Expenditure Category Mid-Year
2025
Mid-Year
2026
Variance ($) Variance
(%)
05 - Employee compensation 808,373 930,929 122,555 15% 10 - Employee benefits 1,082,838 1,248,745 165,907 15% 15 - Materials 372,637 637,516 264,880 71% 20 - Contract services 897,792 780,883 (116,909) -13% 25 - Cost allocation 152,230 435,924 283,695 186% 31 - Special projects 252,434 446,107 193,673 77% Grand Total 3,566,303$ 4,480,104$ 913,801$ 26% 175
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18 The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure they stay within their budget appropriations. In case of any variance, they can request budget adjustments as necessary as part of the quarterly reports.

The budget adjustment requests are summarized in the table below and are also provided in this report as Attachment D.

Administration – CAO – Contract Services
The City Attorney is appointed by the City Council to manage the legal affairs of the City.

The CAO is requesting $410,000 for Legal Services as costs have increased this year due to unique circumstances, including various personnel matters, an important interpleader case, a complicated City-sponsored affordable housing project and builder’s remedy cases.

Administration – City Attorney’s Office ( CAO) – Senior Assistant City Attorney Salary Alignment to Department Director – remainder of FY 2026 The CAO is requesting an increase to salaries and benefits for the remainder of Fiscal Year 2026 in the amount of $ 10,461 to align the salary of the Senior Assistant City Attorney .

This alignment reflects the elevation of that classification as a member of the City’s Executive Management Team and increased responsibilities including review and revision of department staff reports, review of an increasing volume of Public Records Act requests and appointment as the Board member to PLAN and its concomitant Department Revenue Expenditure
Change in Fund
Balance Proposal
Administration - City
Attorney's Office
- 410,000 (410,000) City Attorney's Office Contract Services
Administration - City
Attorney's Office
- 10,461 (10,461) Senior Assistant City Attorney salary alignment - remainder of FY
2026
Admin Services - 75,000 (75,000) Finance consulting, additional auditing and tax services pun group
Innovation & Technology - 15,000 (15,000) ADA Closed Captioning Parks & Recreation 18,478 15,944 2,534 Hidden Treasures Proceeds Public Works - 6,111 (6,111) Emergency HVAC Compressor Replacement
Non-Departmental - 131,100 (131,100) IT PEG Transfer Out TOTAL GENERAL FUND 18,478 663,616 (645,138) Innovation & Technology 131,100 - 131,100 IT PEG Transfer In

TOTAL INTERNAL
SERVICE FUND 131,100 - 131,100 TOTAL ALL FUNDS $ 149,578 $ 663,616 $ (514,038) 176
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19 responsibilities in risk and insurance management. This alignment will result in an ongoing expense of approximately $35,000 for future fiscal years.

Admin Services – Finance consulting, additional auditing and tax services The Department is requesting a one-time increase of $75,000 for financial consulting from HdL and additional auditing and tax services from The Pun Group.

Parks & Recreation -Hidden Treasures Proceeds
The Department is requesting $18,478 in additional appropriations from the 2025 Hidden Treasures Event to reimburse the costs to run the program and continue to support the Stay Active Fund. This proposal also includes allocation of a $300 donation receive d for the Stay Active Fund, as requested by the donor. The Stay Active Fund helps members ages 50 and over remain active and engaged at the Cupertino Senior Center. This fund provides financial assistance through scholarships for members to offset the cost of a Senior Center membership and registration for classes and events. This fund is also utilized to bring in specialized speakers, secure educational films, and purchase resource materials, etc . for events and programs that promote prevention and preparedness of aging issues such as the Health Fair. If not approved, the funds will not be utilized to recoup the costs to produce the event or support the Stay Active Fund.

I&T – Closed Captioning
The Department is requesting a one-time increase of $15,000 to support closed captioning for the City’s public-facing video content and virtual meetings to meet upcoming federal accessibility requirements. Effective April 24, 2026, the Americans with Disabilities Act (ADA) Title II requires public entities serving populations of 50,000 or more to ensure digital content—including prerecorded and live videos—is accessible in accordance with WCAG 2.1 Level AA standards, which include accurate closed captioning. The requested funding will support compliant captioning services, reduce legal and compliance risk, and ensure equitable access to public information for individuals who are deaf or hard of hearing. This investment advances the City’s commitment to accessibility, inclusivity, and transparent public communication. As part of the request, an ongoing budget of $5,000 is requested.

I&T - Video - Fund transfer between different funds
As part of Q1, The Department received $131,100 in additional appropriations to cover expenses for the new Control Room build. This funding was used for infrastructure replacements—specifically, servers and network equipment that had reached end of life.

The expenses were required to complete implementation, testing, and transition to the new system. The replacements are funded through PEG-allocated project expenses.

Since the funds were allocated to the Internal Services Fund 610 -34-310, Council must authorize the transfer of $131,000 from the General Fund to the Internal Services Fund (610) for the expenses to be reimbursed via PEG funds at end of FY2026. 177
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20 Public Works - HVAC System Compressor Replacement
The Department is requesting a one -time increase of
$6,111.00 in additional appropriations for HVAC System Compressor Replacement for Quinlan Community Center (QCC). The compressor failed and reached the end of its useful life. If this is not approved, the QCC will continue to experience inconsistent temperature control, ongoing equipment failures and higher energy and maintenance costs. System performance will remain suboptimal, increasing user complaints and the likelihood of unplanned repairs.

Fund Balance
The General Fund’s audited ending fund balance for FY 2024 -25 is $181.8 million, a 15.7 million increase from FY 2023 -24 actuals primarily due to the prior year ending with expenditure savings that outpaced revenue decreases. Expenditure savings were primarily because of salary and contract savings along with increased revenues across almost all revenue categories, primarily due to increased investment earnings.

As of mid-year, staff anticipate the General Fund will end FY 2025-26 with $178.7 million in fund balance, an increase of $ 22.7 million from the FY 2025 -26 Adopted Budget fund balance projection. The increase from the Adopted Budget is a result of both year -end revenues exceeding expenditures and budget savings achieved in the prior fiscal year. It’s important to note that the on ly portion available for use, according to City policy, is unassigned funds. Committed funds are set aside for specific purposes determined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers. Assigned funds are reserved for encumbrances. Of the total fund balance, $62.7 million is unassigned and available to be used.

Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection revenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and the revenues are recognized.

General Fund Classification of Fund Balance ($ in millions)

*Mid-Year Year-End Projections assume budgeted revenues and expenditures are fully collected and incurred. Fund balances do not consider City Council actions after December 31, 2025. Adjustments to Committed fund balance are made as part of the year- end closing process.

Classification
Actual
2023-24
Actual
2024-25
Adopted Budget
2025-26
1st Quarter Projection
2025-26
Mid-Year Year End
Projection
2025-26
Non Spendable 3.4$ 4.0$ 3.5$ 4.0$ 4.0$ Restricted 23.3 25.8 22.1 24.8 25.8 Committed 108.6 88.6 87.2 88.6 86.1 Assigned 4.7 7.3 - - - Unassigned 26.0 56.1 43.3 65.5 62.7 TOTAL FUND BALANCE 166.1$ 181.8$ 156.0$ 183.0$ 178.7$ 178
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21 Per the City’s Fund Balance Policy, unassigned fund balance over $500,000 is to be used in the following order to replenish committed/restricted fund balances with any remaining balances to be placed in the Capital Reserve:

1. Economic Uncertainty Reserve

2. CalPERS Reserve (Section 115 Pension Trust)

3. Sustainability Reserve

4. Unassigned

As of mid-year, all priority areas are fully funded.

Staffing
As of December 31, 2025, the FY 2025-26 Amended Budget includes a total of 211 full-time equivalent (FTE) positions. No additional full-time equivalent positions are requested as part of mid-year.

Performance Measures
The Mid-Year Financial Report includes updated performance measures that are in line with the best practices of both government and private industry . Workload indicators were removed as part of Baker Tilly’s, the City’s internal auditor, recommendation. These measures have been designed to provide a comprehensive understanding of the City's performance and progress toward achieving its goals and objectives. Attachment F provides an overview of the status of the performance measures as of mid-year. This information is critical to effective decision -making and ensures that resources are being used in the most efficient and effective way possible.

City Manager Discretionary Fund
In the FY 2025-26 Adopted Budget, City Council approved $50,000 in funding for the City Manager Discretionary Fund. The quarterly financial reports will detail the City Manager’s use of the discretionary fund and may include recommendations to replenish depending on the extent and nature of use. As of December 31, 2025, the City Manager’s Discretionary Fund has been used for Property Appraisal Services for 10480 Finch Avenue at a cost of $7,400.

Carryovers and Budget Adjustments
The quarterly financial reports provide details on carryovers and budget adjustments.

Encumbrances are outstanding commitments tied to unfilled purchase orders or contracts, which are rolled over to the following fiscal year until those obligations are fulfilled or terminated. Budget carryovers are unencumbered funds for unfinished projects carried over to the following fiscal year to be spent for the same purpose for which they were approved. Budget adjustments are amendments to the budget that are approved by Council via resolution. The amended budget is the adopted budget, plus encumbrances, budget carryovers, and Council -approved budget adjustments. Revenue 179
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22 and expenditure carryover processes are handled similarly. See Attachment C for details on carryovers and budget adjustments.

Special Projects
The quarterly financial reports provide a status update on special projects including the budget, amount spent, and estimated completion date. Special projects are operational projects, often one-time, that are budgeted in separate accounts for transparency and ease of tracking. If a special project is not completed by the end of a fiscal year, staff may request a carryover to the subsequent fisc al year. Fixed assets have been removed from the list as they are not one -time special projects but the purchase of a fixed asset. Fixed assets are generally items over $5,000 with a useful life of over 5 years or more. Projects included in this reporting category now align with the City Council Special Project Policy.

See Attachment G.

Grants
The quarterly financial reports provide a status update on all active grants and any completed projects for which funding is yet to be received. Active grants are those that have not yet been fully closed out with the granting agency.

Below is a high-level summary of the grant tracking document. Please refer to Attachment H for complete grant tracking updates.

Competitive Grants Non-Competitive Grants
Active Grants 15 20
Pending Results 0 0
Total Grant Dollars Awarded $28,859,428 $4,054,938

Staff will continue to provide additional updates on the status of grants as part of the quarterly financial reports.

Capital Improvement Plan
Public Works staff will bring the Capital Improvement Program FY 2026-27 proposal to City Council in March 2026, for review and later inclusion in the FY 202 6-27 Budget discussions.

CIP Project Status
The quarterly financial reports provide a revised estimate and update on Capital Improvement Program (CIP) projects. As of mid -year, the Public Works Department is not requesting any revisions to the capital budget. See Attachment I for the status of projects.

City Work Program
On December 1, 2025 , Council added six new projects to the FY 2025-27 City Work Program. These have been incorporated into the two -year CWP and any funding needs, if any, will be presented as part of proposed budget study sessions in May 2026. 180
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23 Other Budget Items
Sheriff’s Contract Increase
The complete impact of the Sheriff contract increase is not yet known. Staff is continuing to negotiate and provide updates as additional information becomes available, as noted in the earlier forecast section of this report.

Reorganization of Insurance Administration from Human Resources to City Attorney’s Office As part of ongoing City operational alignment, the Insurance Administration Program was transferred from Administrative Services to the City Attorney’s Office. The City Attorney’s Office maintains day-to-day contact with PLAN JPA (the City’s self-insurance pool) and serves as the Board appointees to PLAN. In addition, the City Attorney’s Office oversees and manages the City’s general liability and property insurance programs. Given this existing oversight and regular coordination with PLAN JPA, consolidati ng the Insurance Administration Program within the City Attorney’s Office improves efficiency, streamlines communications, and ensures consistent management of the City’s risk mitigation and insurance functions.

Reorganization of Human Resources Division from Administrative Services to City Manager’s Office
The Human Resources Division has been reassigned from the Administrative Services Department to the City Manager’s Office. In this structure, Human Resources provides direct support to the City Manager and delivers strategic and operational services and continues to support the policy direction of the City Council. This change strengthens coordination across departments and enhances the City’s ability to address citywide priorities and workforce needs.

Development Services Division Salary Savings for 3rd Party Inspection Services Following the retirement of a Public Works Inspector, the Public Works Department expects to fill the position permanently in April, creating a 3–4 month vacancy. Because existing staff cannot fully absorb the additional workload, the Department proposes hiring temporary inspection services at an estimated cost of $73,600 which includes contingency. These costs would be covered by salary savings from the vacant position, allowing the Department to maintain service levels without exceeding the approved budget. Without using these savings, additional appropriations or service delays may occur.

Sustainability Impact
No sustainability impact.

Fiscal Impact
The Mid-Year Financial Report shows the City is positioned as anticipated . City staff recommends adjustments of $ 663,616 in new appropriations, funded by $ 149,578 in revenues and $514,038 in one-time fund balance. The City will continue to monitor its 181
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24 revenue and expenditure trends closely to ensure it remains on track toward achieving its budgetary goals and objectives.

City Work Program (CWP) Item/Description:

None

Council Goal:

Public Engagement and Transparency, Fiscal Strategy

California Environmental Quality Act
Not applicable.

_____________________________________

Prepared by: Toni Oasay-Anderson, Acting Budget Manager Reviewed by: Jonathan Orozco, Acting Director of Administrative Services Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – FY 2025-26 Mid-Year Financial Report
B – Draft Resolution – Budget Appropriations
C – Description of Carryovers and Adjustments as of December 31, 2025 D – Description of Budget Transfers as of December 31, 2025 E – FY 2025-26 Mid-Year Recommended Adjustments
F – Mid-Year Performance Measures
G – FY 2025-26 Mid-Year Special Projects Update as of December 31, 2025 H – FY 2025-26 Competitive and Non-Competitive Citywide Grants Tracking I – Capital Improvement Program Project Status
J - Draft Resolution – Unrepresented Agreement Update
K – Unrepresented Employees’ Compensation Program (Clean) L – Unrepresented Employees’ Compensation Program (Redline)

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This Financial Report is interactive. Click on a chart to learn more.

Background
On June 3, 2025, the City Council adopted the FY 2025-26 Adopted Budget, a $136.1 million spending plan funded by $133.7 million in revenue and $2.4 million in fund balance. The adopted budget reflected a $68,966 increase from the proposed budget.

As described in the City Manager’s First Quarter Financial Report, the budget was revised to account for encumbrances and carryover appropriations. As part of the FY 2024-25 year-end close, additional funds were carried forward to FY 2025-26, amounting to $18.2 million in encumbrances and $68.3 million in budget carryovers. The largest encumbrances were for Capital Projects ($8.2 million), and the largest carryovers were for General Fund ($28.1 million).

Furthermore, the FY 2025-26 Amended Budget includes Council-approved budget adjustments from July 1 to December 31, 2025, totaling $228,948,923 across all funds primarily due to negotiated increases for all bargaining groups

The amended budget at the end of mid-year is $228.9 million, funded with $186.2 million in revenue and $42.7 million in fund balance. The amended budget is the adopted budget, plus encumbrances, carryovers, and Council-approved budget adjustments. The reflection of carryovers and encumbrances in the amended budget is a standard practice in municipal budgeting and aligns with the amounts in previous years, which have been approximately $80 million. Carryovers and encumbrances are appropriations approved in prior years but have not yet been spent and are still required for ongoing projects or obligations.

CITY OF CUPERTINO
FY 2025-26 Mid-Year Financial Report
The Administrative Services Department is pleased to present the Mid-Year Financial Report for Fiscal Year 2024-25, covering the period from July 1, 2025 to December 31, 2025. This report serves as an update on the City's financial standing, providing the City Council, City leadership, and the public with important insights on the City's fiscal status.

The City is committed to providing accurate and timely financial information, and this report reflects its ongoing efforts to maintain transparency and accountability. 183
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Amended Budget
2023-24
Adopted Budget
2023-24
Amended
Budget Q2
2023-24
Amended
Budget Q4
2024-25
Amended
Budget Q1
2024-25
Amended
Budget Q3
2025-26
Amended
Budget Q2
Fiscal Y ear

0.0 50.0M
100.0M
150.0M
200.0MDollars
Public Works
Capital Projects
Community Development
Law Enforcement
Non Departmental
Parks and Recreation
Administrative Services
Innovation & Technology
Administration
Council and Commissions
Community Development
Flow of Funds Chart (in Millions)
General Fund Revenues, Expenditures, and Fund Balance
To date the City’s financial statement audit has yet to be issued and revenue, expenditure, and fund balance totals listed in this report are preliminary and subject to change after a full review by the City’s auditors. City staff does not anticipate many if any changes from the auditors. 184
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December
2020-21
Actual
2021-22
Amended
Budget Q2
June
2021-22
Actual
December
2022-23
Actual
2023-24
Adopted Budget
December
2023-24
Actual
2024-25
Adopted Budget
2025-26
Amended
Budget Q2
December
2025-26
Actual
Fiscal Y ear

0.0 100.0M

25.0M

50.0M

75.0M
125.0MDollars
Revenues
Expenses
-$9,709,408.28
Revenues Less Expenses in Dec 2025
-$15M
-$10M
-$5M
$0
$5M
$10M
Dec 2021 Dec 2023 Dec 2025
$15,741,940.31
Revenues Less Expenses in Jun 2025
$0
$5M
$10M
$15M
$20M
$25M
$30M
Jun 2021 Jun 2023 Jun 2025
General Fund Revenue and Expenditure Trends
As of December 31, 2025, General Fund revenues have totaled $134.6 million, representing 31.74% of the budgeted revenue. This is below the mid-year revenue range of the past three years, which was between 33% and 405%. General Fund expenditures have totaled $137.6 million, which is 38.08% of the budgeted appropriations*. This is below the mid-year expenditure range of the previous three years, which was between 43% and 53% of year-end actual expenditures. To ensure fiscal stability, staff will continue to closely monitor leading revenue sources throughout the year.

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General Fund Revenues - Mid- Y ear Actuals vs Budget
Data Updated Feb 20, 2026, 11:35 AM
12/2020 12/2021 12/202212/202312/202412/2025

31.74%
In Revenues of $134,564,941.00 Budgeted through Dec 2025 General Fund Expenses - Mid- Y ear Actuals vs Budget
Data Updated Feb 20, 2026, 11:35 AM
12/2020 12/2021 12/202212/202312/202412/2025

38.08%
In Expenses of $137,641,838.00 Budgeted through Dec 2025 $42,709,391.70
Revenues in Dec 2025
$0
$20M
$40M
$60M
$80M
$100M
$120M
Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2025
$52,418,799.98
Expenses in Dec 2025
$0
$20M
$40M
$60M
$80M
$100M
Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec 2025
$42,709,391.70
Revenues in Dec 2025
Property Tax
Sales Tax
Charges for ...

Other
Use of Money
Intergovernm...
$52,418,799.98
Expenses in Dec 2025
Contract Ser...

Employee Com...

Other
Employee Ben...

Cost Allocat...

Transfers Ou...

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General Fund Classification of Fund Balance
As of mid-year, staff anticipate the General Fund will end FY 2025-26 with $185 million in fund balance, an increase of $29.0 million from the FY 2025-26 Adopted Budget fund balance projection. The increase from the Adopted Budget is a result of both year-end revenues exceeding expenditures and budget savings achieved in the prior fiscal year.

It’s important to note that the only portion available for use, according to City policy, is unassigned funds. Committed funds are set aside for specific purposes determined by City Council resolution. Restricted funds, such as the Section 115 Pension Trust, are allocated for specific purposes stipulated by external resource providers.

Assigned funds are reserved for encumbrances. Of the total fund balance, $89.7 million is unassigned and available to be used.

Approximately $10.7 million of unassigned fund balance is attributed to Vallco Town Center plan check and building inspection revenues that were carried over. These revenues will continue to be carried over each year until the services are rendered, and the revenues are recognized.

Recommended Adjustments
The City's departments regularly evaluate their budget expenditures throughout the fiscal year to ensure they stay within their budget appropriations. In case of any variance, they can request budget adjustments as necessary as part of the quarterly reports.

The budget adjustment requests are summarized in the table below. 187
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Summary
The Mid-Year Financial Report shows the City is positioned as anticipated. City staff recommends adjustments of $663,616 in new appropriations, funded by $149,578 in revenues and $514,038 in one-time fund balance. The City will continue to monitor its revenue and expenditure trends closely to ensure it remains on track toward achieving its budgetary goals and objectives.

City of Cupertino, California
Cupertino City Hall
10300 Torre Avenue
Cupertino, CA 95014-3202
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RESOLUTION NO. 26-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2025-26 BY

APPROPRIATING, TRANSFERRING, AND UNAPPROPRIATING MONIES

FOR SPECIFIED FUNDS

WHEREAS, the orderly administration of municipal government depends on a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and

WHEREAS, accomplishing City Council directives, projects and programs, and performing staff duties and responsibilities likewise depends on the monies available for that purpose; and

WHEREAS, the City Manager has determined that the balances from the funds specified in this resolution are adequate to cover the proposed amended appropriations, and therefore recommends the fund reallocations described herein.

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

PASSED AND ADOPTED at a special meeting of the City Council of the City of Cupertino this 3
rd day of March 2026, by the following vote:

Members of the City Council

AYES:

NOES:

ABSENT:

ABSTAIN:

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Resolution No. __________________

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