Cupertino City Council
July 7, 2026

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TABLE OF CONTENTS
REPORT VIABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Findings and Opinions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1.1 Scope of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1.2 Additional Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1.3 Significant Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1.4 Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1.5 Limiting Conditions/Deviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.6 Data Failure and Data Gaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1.7 Reliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.0 SITE AND VICINITY DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.1 Site Location and Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.2 On-Site Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.3 Site and Vicinity Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.4 Physical Setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3.0 HISTORICAL RECORDS REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

3.1 Aerial Photographs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

3.2 Sanborn Fire Insurance Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

3.3 City Directories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

3.4 Historical Topographic Maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.5 Chain of Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4.0 REGULATORY AGENCY RECORDS REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4.1 Local Environmental Health Department and/or State Environmental Agency . . . . . . . . . . . 19

4.2 Fire Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4.3 Building Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4.4 Planning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

4.5 Assessor's Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

4.6 Other Agencies Searched . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

4.7 Oil and Gas Wells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

4.8 Oil and Gas Pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

5.0 REGULATORY DATABASE RECORDS REVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

5.1 Records Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

5.2 Vapor Migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

5.3 Per- and Polyfluoroalkyl Substances (PFAS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

6.0 INTERVIEWS AND USER PROVIDED INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

6.1 Interviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

6.2 User Provided Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

6.3 Previous Reports and Other Provided Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

6.4 Environmental Lien and AUL Search Information Reports . . . . . . . . . . . . . . . . . . . . . . . . . 32

7.0 SITE RECONNAISSANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

7.1 Subject Property Reconnaissance Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

7.2 Adjoining Property Reconnaissance Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

8.0 NON-ASTM SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

8.1 Asbestos-Containing Building Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

8.2 Lead-Based Paint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

8.3 Naturally-Occurring Radon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

8.4 Suspect Mold or Microbial Growth Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

9.0 SIGNATURE OF ENVIRONMENTAL PROFESSIONALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

10.0 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Project No. 522669
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TABLE OF APPENDICES
APPENDIX A: FIGURES
APPENDIX B: PROPERTY PHOTOGRAPHS
APPENDIX C: REGULATORY DATABASE
APPENDIX D: HISTORICAL SOURCES
APPENDIX E: REGULATORY AGENCY RECORDS - SUBJECT PROPERTY APPENDIX F: OTHER SUPPORTING DOCUMENTATION
APPENDIX G: QUALIFICATIONS
APPENDIX H: COMMONLY USED ACRONYMS & ABBREVIATIONS
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REPORT VIABILITY
Regulatory Database January 13, 2026
Site Visit January 23, 2026
Interview(s) Property Owner: N/A
Key Site Manager: January 23, 2026
EP Declaration February 2, 2026
Environmental Lien Search
(if conducted by AEI)
N/A
Report Viability per ASTM E1527-21 July 12, 2026
The dates listed are required for Users who are using the report in connection with CERCLA liability protections. The User may have their own criteria when the report is being used for business risk purposes, and not CERCLA liability protections.

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EXECUTIVE SUMMARY
AEI Consultants (AEI) was retained by City of Cupertino to conduct a Phase I ESA in conformance with AEI's contract and the scope and limitations of ASTM Standard Practice E1527-21 and the EPA Standards and Practices for All Appropriate Inquiries (40 CFR Part 312), for the property located at 10480 Finch Avenue, Cupertino, Santa Clara County, California (the "subject property"). Any exceptions to, or deletions from, this practice are described in Sections 1.4, 1.5, and 1.6 of this report.

Pertinent subject property information is noted below:

Property Information
Site Address(es) 10480 Finch Avenue, Cupertino, Santa Clara County, California 95014
Property ID (APN or Block/Lot) 375-40-067
Location South side of Phil Lane, immediately southeast of Finch Avenue and Phil Lane intersection
Site and Building Information
Approximate Site Acreage/Source 1.48/Assessor
Number of Buildings None; vacant land
Building Construction Date(s)/Source N/A
Building Square Footage (SF)/Source N/A
Number of Floors/Stories N/A
Basement or Subgrade Area(s) None identified
Use/Occupancy of Basement or
Subgrade Area(s)
N/A
Number of Units N/A
Additional Improvements Metal fencing
Property Type Vacant Land
On-site Occupant(s) None identified
Current On-site Operations/Use None identified
Current Use of Hazardous Substances None identified
Regulatory Information
Regulatory Database Listing(s) ENVIROSTOR, RGA LUST (x2), LUST, HIST LUST, SCH, Cortese, HIST CORTESE, UST FINDER RELEASE, CERS, HWTS,
HAZNET, RCRA NonGen/NLR, FINDS (x2), ECHO
A chronological summary of historical subject property information is as follows:

Date Range Subject Property Description and Occupancy (Historical Addresses) Source(s)
1897-1902 Undeveloped land Topographic maps
1903-1938 Unknown use/Data failure; refer to Section 1.6.1 Aerial photographs, city directories, historical
topographic
maps, agency records,
interviews
1939-1953 Agricultural and residential land Aerial
photographs, topographic
maps, interviews
1956-2018 Residential land Aerial photographs,
agency records, city
directories, topographic
maps, interviews
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Date Range Subject Property Description and Occupancy (Historical Addresses) Source(s)
2018-Present Vacant land Aerial photographs, city
directories, site
observation
The immediately surrounding properties consist of the following:

Direction Tenant/Use (Address) Regulatory Database Listing(s) North Phil Lane followed by:

Single-Family Residences (19241-19271 Phil Lane,
10455 Finch Avenue)
None identified
East D. J. Sedgewick Elementary School (19200 Phil
Lane)
None identified
South D. J. Sedgewick Elementary School (19200 Phil
Lane)
None identified
West Single-Family Residences (602-644 Stendhal Lane) Yes; RCRA NonGen/NLR (630 Stendhal Lane), refer to Section 5.1
Northwest Phil Lane followed by:

Single-Family Residence (10465 Finch Avenue)
None identified

FINDINGS AND OPINIONS
Significant Data Gap(s) is defined by the current ASTM Standard E1527 as a data gap that affects the ability of the environmental professional to identify a recognized environmental condition.

AEI did not identify significant data gaps which affected our ability to identify RECs.

Recognized Environmental Condition (REC) is defined by the current ASTM Standard E1527 as (1) the presence of hazardous substances or petroleum products in, on, or at the subject property due to a release to the environment; (2) the likely presence of hazardous substances or petroleum products in, on, or at the subject property due to a release or likely release to the environment; or (3) the presence of hazardous substances or petroleum products in, on, or at the subject property under conditions that pose a material threat of a future release to the environment.
• AEI did not identify evidence of RECs during the course of this assessment.

Controlled Recognized Environmental Condition (CREC) is defined by the current ASTM Standard E1527 as a recognized environmental condition affecting the subject property that has been addressed to the satisfaction of the applicable regulatory authority or authorities with hazardous substances or petroleum products allowed to remain in place subject to implementation of required controls (for example, activity and use limitations or other property use limitations).
• AEI did not identify evidence of CRECs during the course of this assessment.

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Historical Recognized Environmental Condition (HREC) is defined by the current ASTM Standard E1527 as a previous release of hazardous substances or petroleum products affecting the subject property that has been addressed to the satisfaction of the applicable regulatory authority or authorities and meeting unrestricted use criteria established by the applicable regulatory authority or authorities without subjecting the subject property to any controls (for example, activity and use limitations or other property use limitations). • The property is listed as a closed LUST site (March 1997) related to a 500-gallon gasoline UST removed in 1996. Confirmation sampling showed petroleum hydrocarbon concentrations below current residential screening levels. The case was closed with no redevelopment conditions, constituting an HREC.
• The property is listed as a certified School Cleanup site (February 2019) under DTSC oversight. Contaminated soils containing chlordane and lead were excavated and disposed of in 2018. DTSC certified that cleanup goals were achieved and no further action is required. The unrestricted land use certification constitutes an HREC.

Other Environmental Considerations (OEC) include, but are not limited to, de minimis conditions and/or business environmental risks such as the presence of ACMs, LBP, radon, mold, and lead in drinking water, which can have a material environmental or environmentally-driven impact on the business associated with the current or planned use of a parcel of commercial real estate, not necessarily limited to those environmental issues required to be investigated in the ASTM Standard. These may also affect the liabilities and financial obligations of the client, the health and safety of site occupants, and the value and marketability of the subject property.
• AEI did not identify evidence of OECs during the course of this assessment.

CONCLUSIONS
We have performed a Phase I Environmental Site Assessment in conformance with the scope and limitations of ASTM Standard Practice E1527-21, of 10480 Finch Avenue, Cupertino, Santa Clara County, California, the subject property. Any exceptions to, or deletions from, this practice are described in Sections 1.4, 1.5, and 1.6 of this report.

This assessment has revealed no evidence of recognized environmental conditions, controlled recognized environmental conditions, or significant data gaps in connection with the subject property.

RECOMMENDATIONS
AEI recommends no further investigation for the subject property at this time.

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1.0 INTRODUCTION
This report documents the methods and findings of the Phase I Environmental Site Assessment performed in conformance with AEI's contract and scope and limitations of ASTM Standard Practice E1527-21 and the EPA Standards and Practices for All Appropriate Inquiries (40 CFR Part 312), for the property located at 10480 Finch Avenue, Cupertino, Santa Clara County, California (Appendix A: Figures and Appendix B: Property Photographs).

1.1 SCOPE OF WORK
The purpose of the Phase I ESA is to assist the client in identifying potential RECs, in accordance with the most current ASTM E1527 Standard associated with the presence of any hazardous substances or petroleum products, their use, storage, and disposal at and in the vicinity of the subject property. Property assessment activities focused on: 1) a review of federal, state, tribal, and local databases that identify and describe underground fuel tank sites, leaking underground fuel tank sites, hazardous waste generation sites, and hazardous waste storage and disposal facility sites within the ASTM approximate minimum search distance; 2) a property and surrounding site reconnaissance, and interviews with the past and present owners and current occupants and operators to identify potential environmental contamination; and 3) a review of historical sources to help ascertain previous land use at the site and in the surrounding area.

1.2 ADDITIONAL SERVICES
Other Environmental Considerations such as ACMs, LBP, lead in drinking water, radon, mold, and wetlands can result in business environmental risks for property owners which may disrupt current or planned operations or cash flow and are generally beyond the scope of a Phase I assessment as defined by the current ASTM Standard E1527. Based upon the agreed-on scope of services this ESA did not include subsurface or other invasive assessments, business environmental risks, or other services not specifically identified and discussed herein.

1.3 SIGNIFICANT ASSUMPTIONS
The following assumptions are made by AEI in this report. AEI relied on information derived from secondary sources including governmental agencies, the client, designated representatives of the client, property contact, property owner, property owner representatives, computer databases, and personal interviews. AEI has reviewed and evaluated the thoroughness and reliability of the information derived from secondary sources including government agencies, the client, designated representatives of the client, property contact, property owner, property owner representatives, computer databases, or personal interviews.

It appears that all information obtained from outside sources and reviewed for this assessment is thorough and reliable. However, AEI cannot guarantee the thoroughness or reliability of this information.

Groundwater flow, unless otherwise specified by on-site well data or well data from the subject property or nearby sites, is inferred from contour information depicted on the USGS topographic maps. AEI assumes the property has been correctly and accurately identified by the client, designated representative of the client, property contact, property owner, and property owner's representatives.

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1.4 LIMITATIONS
Property conditions, as well as local, state, tribal, and federal regulations can change significantly over time. Therefore, the recommendations and conclusions presented as a result of this assessment apply strictly to the environmental regulations and property conditions existing at the time the assessment was performed. Available information has been analyzed using currently accepted assessment techniques and it is believed that the inferences made are reasonably representative of the property. AEI makes no warranty, expressed or implied, except that the services have been performed in accordance with generally accepted environmental property assessment practices applicable at the time and location of the assessment.

Considerations identified by ASTM as beyond the scope of a Phase I ESA that may affect business environmental risk at a given property include the following: ACMs, radon, LBP, lead in drinking water, wetlands, regulatory compliance, cultural and historical resources, industrial hygiene, health and safety, ecological resources, endangered species, indoor air quality, mold, and high voltage lines. These environmental issues or conditions may warrant assessment based on the type of the property transaction; however, they are considered non-scope issues under the current ASTM Standard E1527.

If requested by the client, these non-scope issues are discussed herein. Otherwise, the purpose of this assessment is solely to satisfy one of the requirements for qualification of the innocent landowner defense, contiguous property owner or bona fide prospective purchaser under CERCLA. The current ASTM Standard E1527 and the United States EPA Standards and Practices for All Appropriate Inquiries (40 CFR Part 312) constitute the "all appropriate inquiry into the previous ownership and uses of the property consistent with good commercial or customary practice" as defined in:

1. 42 U.S.C. § 9601(35)(B), referenced in the current ASTM Standard E1527.

2. Sections 101(35)(B) (ii) and (iii) of CERCLA and referenced in the EPA Standards and Practices for All Appropriate Inquiries (40 CFR Part 312).

3. 42 U.S.C. § 9601(40) and 42 U.S.C. § 9607(q).

The Phase I Environmental Site Assessment is not, and should not be construed as, a warranty or guarantee about the presence or absence of environmental contaminants that may affect the property. Neither is the assessment intended to assure clear title to the property in question. The sole purpose of assessment into property title records is to ascertain a historical basis of prior land use. All findings, conclusions, and recommendations stated in this report are based upon facts, circumstances, and industry-accepted procedures for such services as they existed at the time this report was prepared (i.e., federal, state, and local laws, rules, regulations, market conditions, economic conditions, political climate, and other applicable matters). All findings, conclusions, and recommendations stated in this report are based on the data and information provided, current subject property use, and observations and conditions that existed on the date and time of the property reconnaissance.

Responses received from local, state, or federal agencies or other secondary sources of information after the issuance of this report may change certain facts, findings, conclusions, or circumstances to the report. A change in any fact, circumstance, or industry-accepted procedure upon which this report was based may adversely affect the findings, conclusions, and recommendations expressed in this report.

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AEI's limited radon screening, if included, is intended to provide a preliminary screening to evaluate the potential presence of elevated radon concentrations at the site. The proposed scope is not intended to define the full extent of the presence of radon at the subject property.

As such, the results should be used for lending purposes only. The recommendations and conclusions presented as a result of the limited preliminary radon screening apply strictly to the property conditions existing at the time the sampling was performed. The sample analytical results are only valid for the time, place, and condition of the site at the time of collection and AEI does not warrant that the results will be repeatable or are representative of past or future conditions.

1.5 LIMITING CONDITIONS/DEVIATIONS
The performance of this assessment was limited by the following:
• While additional assessments may have been conducted on the subject property, these documents must be provided for AEI's review in order for the information to be summarized/included in this report. Please refer to Section 6.3 for a summary of previous reports and other documentation provided to AEI during this assessment. • The User did not complete the ASTM User Questionnaire or provide the User information to AEI. AEI assumes that qualification for the LLPs is being established by the User in documentation outside of this assessment.
• At the time of the site reconnaissance, the subject property ground surface was covered with grass and fallen leaves and therefore could not be directly observed.

Based on information obtained from historical sources, including agency records, this limitation is not expected to significantly change the findings of this report. • The subject property owner was not interviewed during this assessment. Based on information obtained from other sources, including the key site manager, this limiting condition is not expected to alter the overall findings of this assessment. • The Santa Clara County Department of Environmental Health was contacted for information on the subject property in order to identify historical tenants/use, property development, and/or hazardous substance/petroleum product handling. Due to the time frame of this assessment, records were not available for review. However, based on the quality of information obtained from other sources, this limitation is not expected to significantly alter the findings of this assessment.

1.6 DATA FAILURE AND DATA GAPS
According to the current ASTM Standard E1527, data gaps occur when the Environmental Professional is unable to obtain information required by the Standard, despite good faith efforts to gather such information. Pursuant to the current ASTM Standard E1527, only significant data gaps, defined as those that affect the ability of the Environmental Professional to identify RECs, need to be documented.

Data failure is one type of data gap. According to the current ASTM Standard E1527, data failure occurs when all of the standard historical sources that are reasonably ascertainable and likely to be useful have been reviewed and yet the objectives have not been met. Pursuant to the current ASTM Standard E1527, historical sources are required to document property use back to the property's first developed use or back to 1940, whichever is earlier, or periods of five years or greater.

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1.6.1 DATA FAILURE
The following data failure was identified during the course of this assessment:

Data Failure As noted in Section 3.0, historical occupancy for the subject property was not available between the years 1903 and 1938. However, it is assumed that during this time period the subject property would have been agricultural and/or residential land, if not unimproved land. Therefore, this data failure is not expected to significantly alter the findings of this assessment.

Information/Sources
Consulted
Aerial photographs, historical topographic maps, agency records, interviews

1.6.2 SIGNIFICANT DATA GAPS
AEI did not identify significant data gaps which affected our ability to identify RECs.

1.7 RELIANCE
All reports, both verbal and written, are for the benefit of City of Cupertino. This report has no other purpose and may not be relied upon by any other person or entity without the written consent of AEI. Either verbally or in writing, third parties may come into possession of this report or all or part of the information generated as a result of this work. In the absence of a written agreement with AEI granting such rights, no third parties shall have rights of recourse or recovery whatsoever under any course of action against AEI, its officers, employees, vendors, successors or assigns.

Reliance is provided in accordance with City of Cupertino and AEI's contract and Terms and Conditions dated January 6, 2026. The limitation of liability defined in the contracted terms is the aggregate limit of AEI's liability to the client and all relying parties.

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2.0 SITE AND VICINITY DESCRIPTION

2.1 SITE LOCATION AND DESCRIPTION
Property Information
Site Address(es) 10480 Finch Avenue, Cupertino, Santa Clara County, California 95014
Property ID (APN or Block/Lot) 375-40-067
Location South side of Phil Lane, immediately southeast of Finch Avenue and Phil Lane intersection
Site and Building Information
Approximate Site Acreage/Source 1.48/Assessor
Number of Buildings None; vacant land
Building Construction Date(s)/Source N/A
Building Square Footage (SF)/Source N/A
Number of Floors/Stories N/A
Basement or Subgrade Area(s) None identified
Use/Occupancy of Basement or
Subgrade Area(s)
N/A
Number of Units N/A
Additional Improvements Metal fencing
Property Type Vacant Land
On-site Occupant(s) None identified
Current On-site Operations/Use None identified
Current Use of Hazardous Substances None identified
Regulatory Information
Regulatory Database Listing(s) ENVIROSTOR, RGA LUST (x2), LUST, HIST LUST, SCH, Cortese, HIST CORTESE, UST FINDER RELEASE, CERS, HWTS,
HAZNET, RCRA NonGen/NLR, FINDS (x2), ECHO

2.2 ON-SITE UTILITIES
Utility Source/System Information
Heating System Vacant land (natural gas available for connection) Cooling System Vacant land (electricity available for connection) Potable Water San Jose Water
Sewage Disposal/Treatment City of Cupertino/Sanitary Sewer Utility source/system information listed in the table above is provided by the key site manager, unless otherwise noted above.

2.3 SITE AND VICINITY CHARACTERISTICS
The subject property is located in a residential and commercial area of Cupertino, California. The immediately surrounding properties consist of the following:

Direction Tenant/Use (Address) Regulatory Database Listing(s) North Phil Lane followed by:

Single-Family Residences (19241-19271 Phil Lane,
10455 Finch Avenue)
None identified
East D. J. Sedgewick Elementary School (19200 Phil
Lane)
None identified
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Direction Tenant/Use (Address) Regulatory Database Listing(s) South D. J. Sedgewick Elementary School (19200 Phil
Lane)
None identified
West Single-Family Residences (602-644 Stendhal Lane) Yes; RCRA NonGen/NLR (630 Stendhal Lane), refer to Section 5.1
Northwest Phil Lane followed by:

Single-Family Residence (10465 Finch Avenue)
None identified

2.4 PHYSICAL SETTING
Geologic Unit Qa. 1 (surficial sediments): silt, fine-grained sand, and gravel deposited in an alluvial environment, represents alluvial fan deposits at base of slopes and upper fan areas, age Holocene
Source: Geologic Map of the Cupertino and San Jose West Quadrangles, Santa Clara and Santa Cruz Counties, CA, Santa Barbara Museum of Natural History, 2007
Soil Series Urban land-Elpaloalto and Stevens Creek complexes (0 to 2 percent slopes) Native soil encountered during 1996 on-site tank removal activities consisted of medium brown, firm, sandy clay with medium to low plasticity Source: USDA Soil Survey
Groundwater Flow
Direction
Northeast
Source: Topographic map interpretation
Estimated Depth to
Groundwater
Greater than 80 feet bgs
Source: Envirostor online database (February 2019 Removal Action Completion Report for subject property)
Surface waters on the
subject property or
adjoining properties
None
Note: Groundwater flow direction can be influenced locally and regionally by the presence of local wetland features, surface topography, recharge and discharge areas, horizontal and vertical inconsistencies in the types and location of subsurface soils, and proximity to water pumping wells. Depth and gradient of the water table can change seasonally in response to variation in precipitation and recharge, and over time, in response to urban development such as storm water controls, impervious surfaces, pumping wells, cleanup activities, dewatering, seawater intrusion barrier projects near the coast, and other factors.

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3.0 HISTORICAL RECORDS REVIEW
Reasonably ascertainable standard historical sources as outlined in the current ASTM Standard E1527 were used to determine previous uses and occupancies of the subject property that are likely to have led to RECs in connection with the subject property. A chronological summary of historical data found, including but not limited to aerial photographs, Sanborn fire insurance maps, historical city directories, historical topographic maps, and agency records, is as follows:

Date Range Subject Property Description and Occupancy (Historical Addresses) Source(s)
1897-1902 Undeveloped land Topographic maps
1903-1938 Unknown use/Data failure; refer to Section 1.6.1 Aerial photographs, city directories, historical
topographic
maps, agency records,
interviews
1939-1953 Agricultural and residential land Aerial
photographs, topographic
maps, interviews
1956-2018 Residential land Aerial photographs,
agency records, city
directories, topographic
maps, interviews
2018-Present Vacant land Aerial photographs, city
directories, site
observation
According to available historical sources, the subject property was identified to consist of undeveloped land as early as 1897 through at least 1902, agricultural (orchards) and residential land by 1939 to 1953, solely residential land by 1956 to 2018, and a vacant lot since 2018.

Potential environmental concerns identified in connection with subject property use are discussed in Section 4.6.

No potential environmental concerns to the subject property from adjoining or nearby properties were identified.

Based on a review of aerial photographs, there is potential that the subject property was historically used for agricultural purposes. There is a potential that agricultural chemicals, such as pesticides and fertilizers, were used on site, and that the subject property has been impacted by the use of such agricultural chemicals. The routine application of pesticides and fertilizers is not considered a release subject to CERCLA response costs. No evidence of spilling, dumping, emitting, and/or mishandling of pesticides and/or fertilizers was identified, and thus the former agricultural uses do not represent a REC.

The subject property, although currently vacant, was formerly utilized for residential purposes after cessation of agricultural (orchard) activities. Development of the subject property likely involved grading activities which would have removed near surface soils or would have potentially involved the addition of imported soils for the landscaped areas. If the subject property is redeveloped and groundbreaking activities are conducted, it would be prudent for the owner of the subject property to determine whether sampling relating to the former Project No. 522669
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agricultural use of the subject property is required by the applicable oversight agency prior to the commencement of redevelopment activities. However, AEI was not informed of any pending redevelopment plans for the subject property. Based on the presence of the site improvements, no further action related to the former agricultural use of the subject property appears warranted at this time.

Based on a review of historical sources, agricultural uses ceased on or prior to the 1970s.

As such, it is considered unlikely that biosolids containing PFAS were spread at the subject property.

If available, copies of historical sources are provided in Appendix D.

3.1 AERIAL PHOTOGRAPHS
AEI reviewed aerial photographs of the subject property and surrounding area. A search was made of the EDR collection of aerial photographs. Aerial photographs were reviewed for the following years (1939-2022, non-inclusive):

Year(s) Subject Property Description Adjoining Property Descriptions 1939,
1948,
1950
Appears developed with agricultural land
(orchards) and residential dwelling at the
northwest corner
NORTH: Appears with roadway followed by
agricultural land and a farmstead
EAST: Appears with agricultural land
SOUTH: Appears with agricultural land
WEST: Appears with agricultural land
NORTHWEST: Appears with roadway
followed by agricultural land
1956 Appears with remodeled or new residential
dwelling at the northwest corner, remainder
of parcel appears with unimproved land
NORTH: Appears with existing roadway
followed by existing residences
EAST: Appears with construction of former
school buildings
SOUTH: Appears with unimproved land
WEST: No significant changes visible
NORTHWEST: Appears with existing roadway
followed by existing residence
1963,
1968,
1974,
1982,
1991
No significant changes visible with exception
of outbuildings on southeast portion of parcel
NORTH: No significant changes visible
EAST: Appears with a school with former
buildings
SOUTH: No significant changes visible
WEST: Appears with existing residences
NORTHWEST: No significant changes visible
1998,
2006,
2010,
2014,
2018
No significant changes visible NORTH: No significant changes visible EAST: Appears with a remodeled school
SOUTH: Appears with field associated with
school to the east
WEST: No significant changes visible
NORTHWEST: No significant changes visible
2022 Appears with existing unimproved lot NORTH: No significant changes visible EAST: No significant changes visible
SOUTH: No significant changes visible
WEST: No significant changes visible
NORTHWEST: No significant changes visible
Subject property:

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• Historical agricultural land - refer to Section 3.0
Adjoining properties:
• No potential environmental concerns identified

3.2 SANBORN FIRE INSURANCE MAPS
Sanborn Fire Insurance maps were developed in the late 1800s and early 1900s for use as an assessment tool for fire insurance rates in urbanized areas. A search was made of the EDR collection of Sanborn Fire Insurance maps.

Sanborn map coverage was not available for the subject property.

3.3 CITY DIRECTORIES
A search of historical city directories was conducted for the subject property utilizing EDR.

Directories were reviewed in approximate five-year increments from 1962-2022, non-inclusive. Refer to the appendices for a complete list of historical subject property tenants identified by EDR.

The first listing for the subject property appeared in 1971. The following table summarizes the results of the city directory search for the subject property.

Subject Property
Year(s) Address - Occupant Listed
1962, 1968 Subject property street not listed
1971 10480 Finch Avenue - no listings
1976, 1981, 1985,
1992, 1995
10480 Finch Avenue - residential tenant (FA or Aida Pestarino) 2000 10480 Finch Avenue - no listings
2005, 2010, 2014 10480 Finch Avenue - residential tenant (Aida or Bart Pestarino) 2017, 2022 10480 Finch Avenue - no listings
If listed above, XXXX indicates that the address is valid but there is no occupancy information available.

The table below summarizes the search of historical city directories conducted for the adjoining properties. Refer to the appendices for a complete list of historical adjoining occupants identified during the review of city directories obtained from EDR.

Adjoining Properties
Direction Address(es) Potential Listings of Concern
North 19241-19271 Phil Lane
10455 Finch Avenue
None identified
East, South 19200 Phil Lane None identified
West 602-644 Stendhal Lane None identified
Northwest 10465 Finch Avenue None identified
Subject property:

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• No potential environmental concerns identified
Adjoining properties:
• No potential environmental concerns identified

3.4 HISTORICAL TOPOGRAPHIC MAPS
AEI reviewed historical topographic maps of the subject property and surrounding area. A search was made of the EDR collection of topographic maps. Historical topographic maps were reviewed for the following years (1889-2021, non-inclusive):

Year(s) Subject Property Description Adjoining Property Descriptions 1889 No coverage depicted NORTH: No coverage depicted
EAST: No coverage depicted
SOUTH: No coverage depicted
WEST: No coverage depicted
NORTHWEST: No coverage depicted
1887,
1899,
1902
Depicted with undeveloped land NORTH: Depicted with undeveloped land EAST: Depicted with undeveloped land
SOUTH: Depicted with undeveloped land
WEST: Depicted with undeveloped land
NORTHWEST: Depicted with roadway
followed by undeveloped land
1943,
1947
Depicted with small structure at northwest
corner, remainder of parcel depicted with
unimproved land
NORTH: No significant changes depicted
EAST: No significant changes depicted
SOUTH: No significant changes depicted
WEST: No significant changes depicted
NORTHWEST: No significant changes depicted
1948 No significant changes depicted NORTH: Depicted with agricultural land EAST: No significant changes depicted
SOUTH: No significant changes depicted
WEST: No significant changes depicted
NORTHWEST: No significant changes
depicted
1953 Depicted with agricultural land (orchard) and
small structure at northwest corner
NORTH: Depicted with mixture of
agricultural and unimproved land
EAST: Depicted with agricultural land
SOUTH: Depicted with agricultural land
followed by unimproved land
WEST: Depicted with agricultural land
NORTHWEST: Depicted with roadway
followed by agricultural land
1961 Depicted with small structure at northwest
corner, remainder of parcel depicted with
unimproved land
NORTH: Depicted with roadway followed by
shading to depict general urban land
EAST: Depicted with Sedgwick School
SOUTH: Depicted with unimproved land
WEST: No significant changes depicted
NORTHWEST: Depicted with roadway
followed by shading to depict general urban
land
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Year(s) Subject Property Description Adjoining Property Descriptions 1968,
1973,
1980
No significant changes depicted NORTH: No significant changes depicted EAST: No significant changes depicted
SOUTH: No significant changes depicted
WEST: Shaded to depict general urban land
NORTHWEST: No significant changes depicted
1995 Shaded to depict general urban land NORTH: No significant changes depicted EAST: No significant changes depicted
SOUTH: Shaded to depict general urban land
WEST: No significant changes depicted
NORTHWEST: No significant changes depicted
2012,
2015,
2021
No site-specific building improvements
depicted
Depicted with adjoining roadway only, no
site-specific building improvements depicted
Subject property:
• Historical agricultural land - refer to Section 3.0
Adjoining properties:
• No potential environmental concerns identified

3.5 CHAIN OF TITLE
Based on the quality of information obtained from other sources, a chain of title search was not performed as part of this assessment.

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4.0 REGULATORY AGENCY RECORDS REVIEW
Local and state agencies, such as environmental health departments, fire prevention bureaus, and building and planning departments are contacted to identify any current or previous reports of hazardous substance use, storage, and/or unauthorized releases that may have impacted the subject property. In addition, information pertaining to AULs, defined as legal or physical restrictions, or limitations on the use of, or access to, a site or facility, is requested.

4.1 LOCAL ENVIRONMENTAL HEALTH DEPARTMENT AND/OR STATE ENVIRONMENTAL AGENCY Agency Date
Contacted
Method of
Contact
Name & Title
of Contact Agency Response
Santa Clara County Department of
Environmental Health (SCCDEH)
January
16, 2026
Online Tanaya Farahi Response pending,
refer to Section 1.5

4.2 FIRE DEPARTMENT
Agency Date
Contacted
Method of
Contact
Name & Title of
Contact Agency Response
Santa Clara County Fire
Department (SCCFD)
September 11,
2025
Email SCCFD Staff Records discussed
below
The only document on file was the case closure letter prepared by the Santa Clara Valley Water District for the on-site Leaking Underground Storage Tank (LUST) case closed in March 1997; refer to Section 4.6 for further discussion.

EDR LIGHTBOX FIRE & EMERGENCY INCIDENT DATA
EDR Lightbox did not list any fire and emergency incidents for the subject property.

4.3 BUILDING DEPARTMENT
Agency Date
Contacted
Method of
Contact
Name & Title of
Contact Agency Response
Cupertino Building
Department (CBD)
January 16,
2026
Online September 11, 2025 Records discussed
below
Records Summary
Year(s) Owner/Applicant Description of Permit and Building Use 1991 Aida Pestarino Water heater/plumbing improvements
Evidence indicating current or prior use or storage of hazardous substances was not on file for the subject property with the CBD.

Records Summary - EDR LightBox Building Permits
Year(s) Owner/Applicant Description of Permit and Building Use 1993 Not available Re-roofing work
Evidence indicating current or prior use or storage of hazardous substances was not identified in the building permits available via EDR LightBox.

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4.4 PLANNING DEPARTMENT
Agency Date
Contacted
Method
of
Contact
Name &
Title of
Contact
Agency Response
Cupertino
Planning
Department
(CPD)
January
16, 2026
Online September
11, 2025
The subject property is zoned "R1-6" for Single-Family
Residential land use. No evidence indicating the
existence of AULs on file for the subject property

4.5 ASSESSOR'S OFFICE
Agency Date
Contacted
Method of
Contact
Name & Title of
Contact Agency Response
Santa Clara County
Assessor's Office
January 26,
2026
Online N/A Information obtained is
discussed below
Records Summary
APN(s) 375-40-067
Acreage 1.48 acres
Construction Date 1956 (former building)
Building Square
Footage
2,754 square feet (former building)
Current Owner Not provided

4.6 OTHER AGENCIES SEARCHED
Agency Date
Contacted
Method
of
Contact
Name & Title of Contact Agency
Response
CA State Water Resources
Control Board (SWRCB)
GeoTracker
January
26, 2026
Online https://geotracker.waterboards.ca.gov Records
discussed
below
SWRCB GeoTracker PFAS Map January
26, 2026
Online N/A No
subject
property
records on
file
SWRCB GeoTracker Historical
Hazardous Substance Storage
Information
January
26, 2026
Online N/A No
subject
property
records on
file
CA Department of Toxic
Substances Control (DTSC)
Hazardous Waste Tracking
System (HWTS)
January
26, 2026
Online N/A Records
discussed
below
CA DTSC EnviroStor January
26, 2026
Online https://www.envirostor.dtsc.ca.gov Records
discussed
below
CalEPA Regulated Site Portal January
26, 2026
Online N/A Records
discussed
below
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Agency Date
Contacted
Method
of
Contact
Name & Title of Contact Agency
Response
Bay Area Air Quality
Management District
(BAAQMD)
January
16, 2026
Email Rochele Henderson, Public Records
Section
No
subject
property
records on
file
Valley Water (formerly Santa
Clara Valley Water District)
Well Database
January
26, 2026
Online https://gis.valleywater.org/wellinfo/ No
subject
property
records on
file
Valley Water (formerly Santa
Clara Valley Water District)
Historic Solvent Case
Database
January
26, 2026
Online https://www.valleywater.org/
accordion/fuel-leaks-and-solvents
No
subject
property
records on
file
CA SWRCB GeoTracker Online Database
The subject property, identified as Ms. Aida M. Pestarino, is listed in the Geotracker database as a Leaking Underground Storage Tank (LUST) site with a status of "Completed-Closed" as of March 1997 relating to a release of gasoline which impacted soil only. The following case history is based on information available on the Geotracker database, including the case closure summary.

One single-wall, bare steel 500-gallon gasoline UST, located on the northeast portion of the parcel, was removed in August 1996. At the time of its removal, the owner stated that the UST had been drained of its liquid at some time in the past and had not been used for approximately 20 years. Following removal of the UST, the resulting excavation cavity measured approximately 5 feet wide by 8 feet long by 7 feet deep. Only a minor odor of petroleum hydrocarbons was detected. No standing water was observed in the bottom or seeping from the sides of the excavation. In addition, about 10 feet of steel vent, fill and product lines were removed from the UST area. No product was observed in these lines during removal. A dispenser was not present at the time of the UST removal. Two confirmation soil samples were collected under the excavated UST, one from under the north end and one from under the south end. The samples were collected from native soils by backhoe bucket at depths of approximately one foot below the bottom of the UST. Considerable effort was made to retrieve these samples from the locations observed, believed, or most likely to contain the highest petroleum hydrocarbon concentrations. The two samples were analyzed for Total Petroleum Hydrocarbons as gasoline (TPHg), benzene, toluene, ethylbenzene, xylenes, and methyl tertiary butyl ether (MTBE). The excavation was backfilled to grade with approximately 15 cubic yards of clean native fill.

TPHg, benzene, toluene, ethylbenzene, and xylenes were detected in the confirmation soil samples at maximum concentrations of 60 parts per million (ppm), 0.081 ppm, 0.030 ppm,

0.13 ppm, and 0.094 ppm, respectively. The maximum residual concentrations of benzene and ethylbenzene at concentrations of 0.081 ppm and 0.13 ppm, respectively, do not exceed 2025 shallow soil residential direct contact Environmental Screening Levels (ESLs) prescribed by the SF Bay CSWRCB.

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Based on review of work performed above and analytical results of the confirmation soil samples, the Santa Clara Valley Water District (SCVWD) concluded that due to the low levels of hydrocarbons reported at the site, the agency believed that with time residual pollution would naturally attenuate and did not require any further corrective action at the time. The SCVWD issued case closure with no redevelopment conditions for the LUST case in a letter dated March 26, 1997.

Based on the regulatory status and analytical results of the soil confirmation samples from native soil underlying the UST excavation cavity, the closed LUST case is not expected to represent evidence of a REC. The existence of a closed LUST case with no redevelopment conditions for the subject property constitutes an HREC.

CalEPA DTSC HWTS Online Database
According to the database, Aida Pestarino manifested 0.25-tons of other empty containers >= 30-gallons in 1996 and Sedgwick Elementary School manifested 0.69-tons of asbestos-containing waste in 2018. It is expected that the waste manifested in 1996 was generated as part of UST-removal activities (discussed above) while the waste manifested in 2018 was generated during demolition of the former on-site residential structures.

CalEPA DTSC Envirostor Online Database
The subject property, identified as Sedgwick Elementary School Expansion Project, is listed in the Envirostor database as a School Cleanup site with a status of "Certified" as of February 2019. The following case history is based on information available on the Envirostor database, including the September 2015 Preliminary Environmental Assessment (PEA) and the February 2019 certification letter.

In preparation for potential expansion of Sedgwick School, the Cupertino Union School District entered an Environmental Oversight Agreement (EPA) with the CalEPA DTSC in March 2015.

The expansion property will not increase the number of students or classrooms at the existing Sedgwick Elementary School. Potable water and sewer services will continue to be provided by the local municipality. Historically, the subject property operated as an orchard from 1939 to 1956 and had been used as residential property since 1956. Two small, single-room dwellings were located to the south of a workshop. The dwellings were of wood-frame construction, resting on concrete blocks. A 500-gallon gasoline UST was removed from the subject property in 1996. The Santa Clara Valley Water District subsequently issued a March 1997 case closure letter stating that no further action related to the UST release was required.

A Preliminary Environmental Assessment (PEA) and Supplemental Site Investigation (SSI) were completed to investigate and delineate, respectively, the subject property for the following environmental conditions that may pose a threat to human health or the environment: 1) organochlorine pesticides (OCPs) and arsenic in soils from historic agricultural use, 2) lead in soils from weathering of lead-based paint potentially used on existing and historic on-site building structures, 3) OCPs in soils from potential termiticide use around existing and historic on-site building structures with wood components, 4) polychlorinated biphenyls (PCBs) in soils from the weathering of sealant compounds used in existing and historic building structures, and 5) volatile organic compounds (VOCs) and total petroleum hydrocarbons as gasoline in soils from former on-site UST.

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Results of the PEA soil gas assessment from a single soil vapor probe within the former UST tankhold identified low level concentrations of benzene, toluene, ethylbenzene, total xylenes (BTEX), and 2-hexanone. However, none of the VOC constituents exceeded their respective human health screening levels. The results of the PEA screening level risk assessment calculated that the total risk from COPCs identified in soil gas was estimated to be 8.6 x 10-9, which does not provide an increased cancer risk of greater than 1 in 1,000,000 (>10-6).

The cumulative hazard is estimated to be 0.0003, which does not provide a significant health hazard (>1). Therefore, further assessment and/or remediation regarding VOCs identified in soil gas at the subject property was not warranted.

The results of the PEA screening level risk assessment estimated the total risk from chemicals of concern (COCs) identified in soils at the subject property to be 3.2 x 10(-5), which provides an increased cancer risk of greater than 1 in 1,000,000. The total health hazard from COCs identified in soils at the subject property was estimated to be 0.46, which does not provide an increased health hazard (i.e., >1 ). Therefore, a response action to reduce or eliminate the chlordane- and lead-impacted soils in the area of the workshop/single-room dwelling and residence was recommended. The purpose of the response action was to mitigate potential risk to human health and the environment by the excavation and off-site disposal of soils containing concentrations of chlordane and lead exceeding the DTSC-modified screening level for chlordane and lead of 0.43 milligrams per kilogram (mg/kg) and 80 mg/kg, respectively. A screening-level human health risk assessment was conducted using the unrestricted land-use scenario. The Removal Action Workplan (RAW) activities focused on excavating approximately 300 cubic yards of chlordane- and lead-contaminated soils. According to the Removal Action Completion Report (RACR), response action field activities were completed in October 2018.

Confirmation soil sampling and chemical analyses were conducted when the planned soil excavation activities were completed. Confirmation soil samples were collected from the bottom and side walls of the excavation areas and were chemically analyzed by an analytical laboratory for the presence of OCPs and lead. The results of the confirmation soil sampling and subsequent screening level risk assessment indicated that the objectives and cleanup goals of the response action had been met. Excavated soil was temporarily stockpiled on-site and characterized for waste disposal. Approximately 257 tons (approximately 160 cy) of soils classified as non-hazardous waste were transported to Republic Services, Inc. Newby Island Landfill Facility located in Milpitas, Santa Clara County, California for disposal. The actual volume of soils removed from the subject property was less than the estimated volume (300 cy) due to the discovery of deep concrete foundation walls, at several locations, that reduced the area of interior excavation and volume of soils requiring removal.

The total risk from OCPs identified in soil confirmation samples collected at the subject property was estimated to be 5.02 x 10-1, which does not present an increased cancer risk of greater than 1 in 1,000,000 (>1 o-6). The total health hazard index from COCs identified in soils at the subject property was estimated to be 0.01, which does not present an increased health hazard index (i.e., >1 ). Therefore, further remediation at the subject property for OCPs in soils was not warranted. Lead concentrations reported in confirmation soil samples collected at the subject property ranged from 8.2 to 55 mg/kg. Using the calculated 95 percent upper confidence limit for lead of 24 mg/kg, a risk assessment was performed using the DTSC lead risk assessment spreadsheet model (LeadSpread Version 8). Based on the LeadSpread output, exposure to the lead concentrations detected at the property will result in a 90th percentile blood lead concentration of 0.6 micrograms per deciliter in children, which is below the Office of Environmental Health Hazard Assessment's blood toxicity level of 1 micrograms per liter.

Therefore, further remediation for lead in soils at the property was not warranted.

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Confirmation soil sample results verified that removal action objectives and cleanup goals were achieved and that the subject property no longer poses an unacceptable risk to human health or the environment.

The DTSC approved the revised RACR and certified that all response actions have been completed and further removal/remedial actions are not necessary for the subject property in a letter dated February 28, 2019.

Based on the regulatory status and soil gas/soil human health screening discussed above, the closed Envirostor case is not expected to represent evidence of a REC. The certification was based on unrestricted land use which constitutes an HREC for the subject property.

CalEPA Regulated Site Portal
The subject property, identified as Pestarino Property, is listed as a LUST site issued closure by local regulatory authorities in March 1997; refer to the above LUST case for further discussion.

The subject property, identified as Sedgwick Elementary School Expansion Project, is listed as a School Cleanup site issued closure by local regulatory authorities; refer to the above Envirostor case for further discussion.

No other agencies were contacted during the course of this assessment.

4.7 OIL AND GAS WELLS
Agency Date
Referenced Resource Oil or gas wells located within 500 feet of the subject property
California Geologic Energy
Management Division (CalGEM)
January 26,
2026
CalGEM
Map
No

4.8 OIL AND GAS PIPELINES
Agency Date
Referenced Resource Pipelines located within 500 feet of the subject property
National Pipeline Mapping
System (NPMS)
January 26,
2026
NPMS Public Map
Viewer
No
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5.0 REGULATORY DATABASE RECORDS REVIEW
AEI contracted EDR to conduct a search of publicly available information from federal, state, tribal, and local databases containing known and suspected sites of environmental contamination and sites of potential environmental significance. Data gathered during the current regulatory database search is compiled by EDR into one regulatory database report.

Location information for listed sites is designated using geocoded information provided by federal, state, or local agencies and commonly used mapping databases with the exception of "Orphan" sites. Due to poor or inadequate address information, Orphan sites are identified but not geocoded/mapped by EDR, rather, information is provided based upon vicinity zip codes, city name, and state. The minimum search distance from the federal and state environmental records database listings specified in the current ASTM Standard E1527 is included in Section

5.1. A copy of the regulatory database report, which includes detailed descriptions of the databases noted below as well as the total number of sites identified, is included in Appendix C of this report.

In determining if a listed site is a potential environmental concern to the subject property, AEI generally applies the following criteria to classify the site as lower potential environmental concern: 1) the site only holds an operating permit (which does not imply a release), 2) the site's distance from, and/or topographic position relative to, the subject property, and/or 3) the site has recently been granted "No Further Action" by the appropriate regulatory agency.

Regulatory database listings associated with the subject property, adjoining properties and/ or nearby sites of concern that were determined to warrant additional discussion, if any, are identified and further discussed in Section 5.1.

5.1 RECORDS SUMMARY
Database
Search
Distance
(Miles)
Subject
Property
Adjoining
Property
Other Nearby Sites
of Concern
Federal NPL (Superfund) sites 1.0
Federal Delisted NPL sites 0.5
Federal CERCLA removals/orders
sites

0.5 Federal CERCLA sites with NFRAP 0.5
Federal RCRA facilities undergoing
Corrective Action

1.0 Federal RCRA TSD facilities 0.5
Federal RCRA generators (LQG,

SQG, VSQG)
SP/ADJ
Federal RCRA NonGen/NLR sites SP/ADJ  
Federal IC/EC sites SP
Federal ERNS sites SP
State/tribal "Superfund" equivalent
sites

1.0 State/tribal hazardous waste
facilities

0.5 
State/tribal landfill and solid waste
disposal facilities

0.5 State/tribal leaking storage tanks 0.5 
State/tribal registered storage
tanks
SP/ADJ
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Database
Search
Distance
(Miles)
Subject
Property
Adjoining
Property
Other Nearby Sites
of Concern
State/tribal voluntary cleanup sites 0.5
State/tribal IC/EC registries SP
State/tribal brownfield sites 0.5
Orphans N/A
Additional Environmental Record
lists
SP/ADJ 
Facility Name Pestarino Property, Sedgwick Elementary
Address 10480 Finch Avenue
Distance & Direction Subject Property
Hydrologic Position N/A
Databases Listed ENVIROSTOR, RGA LUST (x2), LUST, HIST LUST, SCH, Cortese, HIST CORTESE, UST FINDER RELEASE, CERS, HWTS, HAZNET, RCRA NonGen/NLR, FINDS (x2), ECHO
Comments According to the regulatory database, Pestarino Property is listed as a LUST site issued closure by a Santa Clara County agency in March 1997. Aida Pestarino manifested other empty containers >= 30-gallons in 1996, expected to have been generated as part of UST removal activities.

Sedgwick Elementary School is listed as a School Cleanup site with a status of "Certified" issued by the CalEPA DTSC in February 2019. Sedgwick Elementary manifested asbestos-containing waste in 2018, expected to have been generated during demolition of the former on-site residential structures.

Listings are discussed in detail in Section 4.6.

Review of the above information did not reveal any evidence of RECs, although HRECs were identified as a result of the case closures.

Facility Name 630 Stendhal Lane
Address 630 Stendhal Lane
Distance & Direction Adjoining to the west
Hydrologic Position Up-gradient
Databases Listed RCRA NonGen/NLR
Comments According to the regulatory database, 630 Stendhal Lane is listed as a nongenerator of RCRA waste in January 2019 with no historic generator or violation data. No other pertinent information is included.

No unauthorized releases are associated with the above facility name. Based on the lack of a documented release, the review of regulatory agency files for this site was not deemed necessary, and the site does not represent a REC.

5.2 VAPOR MIGRATION
A vapor encroachment condition (VEC) is the presence or likely presence of Chemical(s) of Concern (COC) vapors in the vadose zone of the subject property caused by the release of vapors from contaminated soil and/or groundwater either on or near the subject property.

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AEI conducted a limited screening for potential VECs that may affect the subject property. The VEC screening focused on the current and historical usage of the subject property and also utilized the aforementioned regulatory agency database report provided by EDR to evaluate identified Chemicals of Concern (COCs), including petroleum hydrocarbons.

Determination of AOC
To identify the area of concern (AOC) for contaminated sites with non-petroleum hydrocarbon COCs, AEI utilized the approximate minimum search distance defined by the current ASTM E2600 of 1,760 feet (1/3 mile) from the subject property boundary for COC-contaminated sites. For sites contaminated with petroleum hydrocarbon COCs, AEI utilized the AOC approximate minimum search distance of 528 feet (1/10 mile). The AOC was adjusted accordingly based on review of physical setting characteristics, known release information, property and land features, groundwater flow direction, and soil type, et al.

ASTM's Vapor Encroachment guidance indicates that when groundwater flow direction can be estimated or determined, the cross-gradient or downgradient radius distances can be significantly reduced. AEI calculated the reduced AOC distances when considering groundwater flow direction by utilizing the following default distances, which were determined using the Buonicore Methodology:

Non-petroleum hydrocarbon COCs:
• 1,760 feet in the upgradient direction
• 365 feet in the cross-gradient direction
• 100 feet in the downgradient direction
Petroleum hydrocarbon COCs if Light, Non-Aqueous Phase Liquid, (LNAPL, i.e. floating product) is suspected:
• 528 feet in the upgradient direction
• 165 feet in the cross-gradient direction
• 100 feet in the downgradient direction
Petroleum hydrocarbon COCs if LNAPL is not suspected:
• 528 feet in the upgradient direction
• 95 feet in the cross-gradient direction
• 30 feet in the downgradient position
Additional adjustment of the AOC may be conducted based on AEI's professional judgment.

Conclusions
Source VEC
Identified
VEC Not
Identified Comments
Subject Property  N/A
Adjoining and/or Nearby Site(s)  N/A
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5.3 PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS)
As defined in Section 3.2.36 of the current ASTM Standard E1527, hazardous substance means “those substances defined as a hazardous substance pursuant to CERCLA 42 USC § 9601(14), as interpreted by EPA regulations and the courts.” Hazardous substances that are not defined (or not yet defined) as hazardous substances under CERCLA are outside of the scope of the current ASTM Standard E1527.

On July 8, 2024, the Final EPA rule became effective that designates perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) as CERCLA hazardous substances. Per the current ASTM Standard E1527, once this rule went into effect, these substances are evaluated within the scope of this standard, and a release or likely release of PFOA and/or PFOS is considered a REC.

Other than PFOA/PFOS, compounds classified as PFAS are not currently classified as hazardous substances under CERCLA, and thus the potential presence of PFAS (other than PFOA/PFOS) is outside of the scope of the current ASTM Standard E1527, and does not constitute a REC at this time. However, the report User should be aware that regulatory criteria and classifications are subject to change.

AEI's research of potential PFAS contamination focuses on the release/likely release of PFOA/ PFOS. However, if additional information pertaining to other PFAS is identified, AEI will also assess/discuss these compounds, as deemed applicable/appropriate within the scope of this investigation.

It should be noted that AEI's screening of PFOA/PFOS and other PFAS is based solely on review of the resources cited within this report. Identification, or lack thereof, is not a warranty that PFOA/PFOS or other PFAS contamination is present or absent at a site. Additionally, it should be noted that given the evolving nature of science and regulatory oversight of PFOA/PFOS and other PFAS, additional sources of contamination may exist at the subject property, adjoining properties and/or other nearby sites that were not identified by the limited data and screening tools cited within this report.

5.3.1 POTENTIAL ON-SITE PFAS SOURCES/CONCERNS
AEI researched the standard historical and regulatory sources cited within this report to determine if a release or likely release of PFOA/PFOS has occurred at the subject property.

A voluntary industry phaseout of PFOA and PFOS was first implemented in the late 1990s and was fully implemented for PFOS by 2002 and PFOA by 2015. Although PFOA and PFOS have been generally phased out since 2015, studies have found that precursor PFAS in wastewater treatment systems may form PFOA and PFOS. As such, even after 2015, the presence of PFAS in wastewater discharges is considered a likely source of PFOA and PFOS contamination.

Potential Source Yes No
Past or present industrial operations that potentially included the use of PFAS (if "yes" see Potential PFAS Sources from Industrial Uses section/table below) 
The use or discharge of AFFF (if "yes" see Potential Sources of AFFF section/table below)  Electroplating (1950s-present)
NOTE: Electroplating (specifically hard chromium plating) is an industrial activity where PFAS-containing mist suppressants may have been used

Agricultural uses, specifically 1970s-present that included application of biosolids/WWTP sludge that potentially contained PFAS  Project No. 522669
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Potential Source Yes No
Wastewater treatment plant (WWTP) (1960s-present) 
Landfill operations / waste disposal areas (1960s-present)  Mining / quarrying / oil production 
Commercial carwash (1989-2010) 
Dry cleaner and/or commercial laundry (1970s-2010) 
Based on a review of historical sources, the subject property was historical used for agricultural uses. However, agricultural uses ceased on or prior to the 1970s. As such, it is considered unlikely that biosolids containing PFAS were spread at the subject property.

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6.0 INTERVIEWS AND USER PROVIDED INFORMATION

6.1 INTERVIEWS
Pursuant to the current ASTM Standard E1527, the following interviews were performed during this assessment in order to obtain information indicating RECs in connection with the subject property.

6.1.1 INTERVIEW WITH OWNER
Name Cupertino Union School District, c/o Superintendent Date Interviewed N/A
Method of Contact N/A
Year First Associated
w/Property
2017 (per PropertyShark.com)
Notes Not interviewed; refer to Section 1.5

6.1.2 INTERVIEW WITH KEY SITE MANAGER
Name Mr. Jason Bocanegra, Cupertino Union School District, Maintenance & Grounds Operations Manager
Date Interviewed January 23, 2026
Method of Contact Telephone
Year First Associated
w/Property
2019
Notes Interviewed; see below
Interview Summary Mr. Bocanegra stated that the subject property was historically occupied by a single-family residence. Mr. Bocanegra was not aware of any environmental issues associated with the subject property, nor any existing or former UST, ASTs, oil-water separators, sumps, septic tanks, or wells.

Mr. Jason Bocanegra, Cupertino Union School District, Maintenance & Grounds Operations Manager was asked if they were aware of any of the following:

Yes No
Any knowledge of USTs, clarifiers or oil/water separators, sumps, or other subsurface features. 
Any knowledge of previous environmental investigations conducted on site.  Any knowledge of current or past industrial operations and/or other operations which would involve the use of hazardous substances and/or petroleum products.

Any known plans for site redevelopment or change in site use.  Any pending, threatened, or past litigation relevant to hazardous substances or petroleum products in, on, or from the property. 
Any pending, threatened or past administrative proceedings relevant to hazardous substances or petroleum products in, on, or from the property.  Any notices from any governmental entity regarding any possible violation of environmental laws or possible liability relating to hazardous substances or petroleum products.

Any incidents of flooding, leaks, or other water intrusion, and/or complaints related to indoor air quality. 
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6.1.3 PAST OWNERS, OPERATORS, AND OCCUPANTS
AEI did not attempt to interview past owners, operators, and occupants of the subject property because information from these sources would likely be duplicative of information already obtained from other sources.

6.1.4 INTERVIEW WITH OTHERS
Information obtained during interviews with local government officials is incorporated into the appropriate segments of this report.

6.2 USER PROVIDED INFORMATION
User provided information is intended to help identify the possibility of RECs in connection with the subject property. According to the current ASTM Standard E1527 and the EPA Standards and Practices for All Appropriate Inquiries (40 CFR Part 312), certain items should be researched by the prospective landowner or grantee, and the results of such inquiries may be provided to the Environmental Professional. The responsibility for qualifying for LLPs by conducting the inquiries ultimately rests with the User, and providing the information to the Environmental Professional would be prudent if such information is available.

The User did not complete the ASTM User Questionnaire or provide the User information to AEI.

AEI assumes that qualification for the LLPs is being established by the User in documentation outside of this assessment.

Question Response/ Comment

1. Environmental liens that are filed or recorded against the property (40 CFR 312.25)
Did a search of recorded land title records (or judicial records where appropriate) identify any environmental liens filed or recorded against the property under federal, tribal, state or local law?
Information not
provided

2. Activity and use limitations that are in place on the property or that have been filed or recorded against the property (40 CFR 312.26(a)(1)(v) and vi)).

Did a search of recorded land title records (or judicial records where appropriate) identify any AULs, such as engineering controls, land use restrictions or institutional controls that are in place at the property and/or have been filed or recorded against the property under federal, tribal, state or local law?
Information not
provided

3. Specialized knowledge or experience of the person seeking to qualify for the LLP (40 CFR 312.28).

Do you have any specialized knowledge or experience related to the property or nearby properties? For example, are you involved in the same line of business as the current or former occupants of the property or an adjoining property so that you would have specialized knowledge of the chemicals and processes used by this type of business?
Information not
provided

4. Relationship of the purchase price to the fair market value of the property if it were not contaminated (40 CFR 312.29).

Does the purchase price being paid for this property reasonably reflect the fair market value of the property? If you conclude that there is a difference, have you considered whether the lower purchase price is because contamination is known or believed to be present at the property?
Information not
provided
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Question Response/ Comment

5. Commonly known or reasonably ascertainable information about the property (40 CFR 312.30).

Are you aware of commonly known or reasonably ascertainable information about the property that would help the environmental professional to identify conditions indicative of releases or threatened releases? For example:
(a) Do you know the past uses of the property?
(b) Do you know of specific chemicals that are present or once were present at the property?
(c) Do you know of spills or other chemical releases that have taken place at the property?
(d) Do you know of any environmental cleanups that have taken place at the property?
Information not
provided

6. The degree of obviousness of the presence or likely presence of contamination at the property, and the ability to detect the contamination by appropriate investigation (40 CFR 312.31).

Based on your knowledge and experience related to the property, are there any obvious indicators that point to the presence or likely presence of contamination at the property?
Information not
provided
Purpose/reason for conducting Phase I ESA: Information not provided; AEI
assumes the purpose
is to qualify for an
LLP to CERCLA
liability

6.3 PREVIOUS REPORTS AND OTHER PROVIDED DOCUMENTATION
No prior reports or other relevant documentation in association with the subject property was made available to AEI during the course of this assessment.

6.4 ENVIRONMENTAL LIEN AND AUL SEARCH INFORMATION REPORTS To meet the requirements of 40 CFR 312.20 and 312.25, a search for the existence of environmental liens and AULs that are filed or recorded against the subject property must be conducted. The current ASTM Standard E1527 recognizes two acceptable methods to meet this requirement:
• Method 1 consists of a review of title documents by the User (or a title professional engaged by the User) for environmental liens and AULs.

Note: this method must be completed by the User (or a title professional engaged by the User), and thus cannot be completed by AEI.

Refer to Section 6.2 User Provided Information for information (if any) provided by the User via the User Questionnaire.
• Method 2 consists of obtaining and relying on title search information reports designed to search for environmental liens and AULs.

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Note: these reports are not included within the scope of the current ASTM E1527 Standard. Thus, these reports can only be obtained by a consultant if explicitly added to the agreed upon scope of work between the consultant and the client.

The inclusion of a title search information report designed to search for environmental liens and AULs was not part of AEI’s approved scope of services.

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7.0 SITE RECONNAISSANCE
Site Reconnaissance Date January 23, 2026
AEI Site Assessor(s) Adrian Angel
Property Escort(s)/
Relationship(s) to Property
Mr. Jason Bocanegra/Maintenance & Grounds Operations Manager for the Cupertino Union School District
Units/Areas Observed Ground surface of subject property Area(s) not accessed and
reason(s)
None
Other Physical Constraints
• Volume of vegetation
Refer to Section 1.5 for discussion of limiting condition(s) General Observations The subject property consists of vacant land on a roughly squareshaped parcel. No improvements were observed with the exception of metal perimeter fencing. No hazardous materials or features of concern were observed on-site.

Reconnaissance Findings Summary
Feature
Observed on
Subject Property
(see Section 7.1)
Observed on
Adjoining Property
(see Section 7.2)
Regulated Hazardous Substances/Wastes and/or Petroleum
Products in Connection with Property Use (including drums, totes, and intermediate bulk containers)
Aboveground/Underground Hazardous Substance or
Petroleum Product Storage Tanks (ASTs/USTs)
Hazardous Substance and Petroleum Product Containers Not in Connection with Property Use
Unidentified Substance Containers
Electrical or Mechanical Equipment Likely to Contain Fluids Interior Stains or Corrosion
Strong, Pungent, or Noxious Odors
Pools of Liquid
Drains, Sumps, and Clarifiers 
Pits, Ponds, and Lagoons
Stained Soil or Pavement
Stressed Vegetation
Solid Waste Disposal or Evidence of Fill Materials
Waste Water Discharges
Wells
Septic Systems or Cesspools
Biomedical Wastes
Other

7.1 SUBJECT PROPERTY RECONNAISSANCE FINDINGS
During the site reconnaissance, AEI did not observe any of the items listed in the above Reconnaissance Findings Summary table.

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7.2 ADJOINING PROPERTY RECONNAISSANCE FINDINGS
During the site reconnaissance, AEI observed the items listed in the above Reconnaissance Findings Summary table, which are further discussed below.

7.2.1 DRAINS, SUMPS, AND CLARIFIERS
Several storm drains were observed in the parking areas of the adjoining properties and adjoining roadways. AEI did not observe evidence of hazardous substances or petroleum products in the vicinity of the drains. Based on the use of the drains solely for storm water runoff, the presence of the drains is not considered evidence of a REC.

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8.0 NON-ASTM SERVICES

8.1 ASBESTOS-CONTAINING BUILDING MATERIALS
The subject property is currently vacant land or lacks structures. Consequently, no building components containing suspect asbestos containing materials were identified during the site inspection.

8.2 LEAD-BASED PAINT
The subject property is currently vacant land or lacks structures. Consequently, AEI did not observe building components likely to contain suspect LBP during the site reconnaissance.

8.3 NATURALLY-OCCURRING RADON
Radon is a naturally-occurring, odorless, and invisible radioactive gas. According to the United States EPA, radon is the second leading cause of lung cancer. Natural radon levels vary and are closely related to geologic formations, soils, and foundation construction. Radon may enter buildings through basement sumps or other openings such as cracks and other holes in foundations.

US EPA Map
In 1993 the United States EPA prepared a map to assist national, state, and local organizations to target their resources and to implement radon-resistant building codes. The Map of Radon Zones should not be used to determine if individual buildings need to be tested. The map identifies counties of the US with the greatest potential for elevated indoor radon levels based on indoor radon measurement data, geology, soil parameters, and foundation types. The map divides the country into three radon zones based on potential radon accumulation, but is not to be considered predictive of radon accumulation.

The 1993 EPA map identifies the following three radon zones:
• Zone 1 - Average indoor radon levels may be greater than 4.0 pCi/L • Zone 2 - Average indoor radon levels may be between 2.0 and 4.0 pCi/L • Zone 3 - Average indoor radon levels may be less than 2.0 pCi/L It is important to note that elevated levels of radon can be found in all three zones, and the EPA and other agencies recommend site-specific testing to determine radon levels at a specific property.

It should also be noted that EPA's 1993 Map of Radon Zones was based on limited data collected prior to 1993 and therefore may be supplemented with available state-developed or other data to further understand the radon potential for a specific area.

According to the US EPA, the assigned radon zone level for the County is Zone 2, which predicts an average indoor screening level between 2.0 pCi/L and 4.0 pCi/L, which is below or at the action level of 4.0 pCi/L assigned by the US EPA.

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According to additional data obtained from California Department of Health Services Radon Database, of 93 tests conducted in the subject property zip code (95014) in 2016, 4 of the tests were above 4.0 pCi/L. While a relatively small percentage of the test results exceeded the EPA threshold, the majority of the locations sampled were below 4.0 pCi/L.

Radon sampling would be necessary to determine site-specific radon conditions. Radon sampling was not requested as part of this assessment.

8.4 SUSPECT MOLD OR MICROBIAL GROWTH CONDITIONS
The subject property is currently vacant land or lacks structures. Consequently, suspect mold was not addressed as part of this assessment.

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9.0 SIGNATURE OF ENVIRONMENTAL PROFESSIONALS
We declare that, to the best of our professional knowledge and belief, we meet the definition of Environmental Professional as defined in § 312.10 of 40 CFR Part 312.

We have the specific qualifications based on education, training, and experience to assess a property of the nature, history and setting of the subject property. We have developed and performed the all appropriate inquiries in conformance with the standards and practices set forth in 40 CFR Part 312.

Prepared By: Reviewed By:

Adrian Angel Cameron Stanley, PG
Associate Geoscientist Senior Author
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10.0 REFERENCES
Item Date(s) Source
Soils Information Accessed January 2026 USDA Web Soil Survey http://websoilsurvey.nrcs.usda.gov/
app/WebSoilSurvey.aspx
Depth to Groundwater
Information
February 2019 Removal Action Completion Report,
Sedgwick Elementary School
Expansion Project, 10480 Finch
Avenue, Cupertino, CA, prepared by
Padre Associates Inc.

Aerial Photographs 1939-2022, non-inclusive EDR
Sanborn Map Report/Search September 10, 2025 EDR
City Directories 1962-2022, non-inclusive EDR
Historical Topographic Maps 1889-2021, non-inclusive EDR Environmental Health Department January 16, 2026 Santa Clara County Department of Environmental Health
Fire Department September 11, 2025 Santa Clara County Fire Department Building Department January 16, 2026 Cupertino Building Department Planning Department January 16, 2026 Cupertino Planning Department Assessor's Information and Parcel
Map
January 26, 2026 Santa Clara County
Other Agencies Searched January 16, 2026 (BAAQMD)
January 26, 2026 (others)
SWRCB GeoTracker, DTSC
HWTS, DTSC EnviroStor, CalEPA
Regulated Site Portal, and Valley
Water (formerly Santa Clara Valley
Water District)
Oil and Gas Wells January 26, 2026 California Geologic Energy Management Division
Oil and Gas Pipelines January 26, 2026 NPMS Public Map Viewer https://www.npms.phmsa.dot.gov/
PublicViewer/composite.jsf
Regulatory Database Report January 13, 2026 EDR
Interview with Key Site Manager January 23, 2026 Mr. Jason Bocanegra, Cupertino Union School District, Maintenance
& Grounds Operations Manager
Radon Zone Information 1993 US EPA Map of Radon Zones
https://www.epa.gov/radon
Additional Radon Information 2016 California Department of Health Services Radon Database
https://www.cdph.ca.gov/
Programs/CEH/DRSEM/Pages/EMB/
Radon/Radon-Test-Results.aspx
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01276.0032 2158401.2
RESOLUTION NO. 26-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL APPROVING THE

EXCHANGE AGREEMENT FOR THE FINCH PROPERTY, AUTHORIZING
EXECUTION OF RELATED DOCUMENTS, APPROVING ALLOCATION OF $10.4

MILLION FOR ACQUISITION OF THE PROPERTY, AND FINDING SUCH

ACTION EXEMPT FROM THE REQUIREMENTS OF CEQA
WHEREAS, the Cupertino Union School District (“CUSD”) owns certain real property located at 10480 Finch Avenue in Cupertino, commonly referred to as the “Finch Property;” and
WHEREAS, in 2020, the City Council considered whether to investigate a potential acquisition of the Finch Property from CUSD, which property is located next to Sedgwick Elementary School; and
WHEREAS, at its July 1, 2025 meeting, the City Council appointed the City Manager and Interim City Attorney to negotiate a potential purchase of the Finch Property; and WHEREAS, following Council direction, the City Manager and Interim City Attorney engaged in negotiations with CUSD regarding the City’s acquisition of the Finch Property; and
WHEREAS, the City and CUSD retained a qualified real estate appraiser, who prepared an appraisal valuing the Finch Property at $10.4 million; and WHEREAS, the City and CUSD have negotiated an Exchange Agreement providing for the City’s acquisition of the Finch Property at a purchase price of $10.4 million, subject to the terms and conditions set forth therein; and
WHEREAS, the City Council has reviewed the staff report, the salient terms of the proposed Exchange Agreement, and related supporting materials; and WHEREAS, the project is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to section 15316 of the CEQA Guidelines and section 15316 of the California Code of Regulations, because the project consists of the acquisition of land in order to establish a park and no management plan for the park has been prepared. The proposed acquisition is also categorically exempt from CEQA pursuant to CEQA Guidelines section 15325, because the project consists of the acquisition of an interest in land in order to preserve open space or lands for park purposes. The proposed acquisition is also categorically exempt from CEQA pursuant to section 15061(b)(3) because it can be seen with certainty that there is no possibility that the acquisition of the 296
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01276.0032 2158401.2
property, as proposed, may have a significant effect on the environment. Furthermore, the City is not approving any development project at this time, and any future use of the property will be subject to separate CEQA review, if required.

WHEREAS, the record also reflects prior environmental review and remediation oversight by the state Department of Toxic Substances Control (“DTSC”). On February 28, 2019, DTSC approved a Removal Action Completion Report concluding that all response actions at the Property had been completed and that further removal/remediation actions were not necessary. On May 3, 2019, DTSC issued a Removal Action Certification for the property, which certified completion of the remedial work. Recently, on February 2, 2026, the City obtained a Phase 1Environmental Site Assessment, which concluded that no evidence of Recognized Environmental Conditions (RECs) exist at the site and advised that no further investigation of the property was recommended; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino does hereby resolve as follows:

1. The foregoing recitals are true and correct and are incorporated herein by reference.

2. The City Council approves the Exchange Agreement, attached hereto, between the City of Cupertino and Cupertino Union School District for acquisition of the Finch Property, substantially in the form presented to the City Council.

3. The City Manager, or designee, is authorized to execute the Exchange Agreement and any escrow instructions, certificates, closing documents, and other ancillary documents necessary to consummate the transaction, in a form approved by the Interim City Attorney.

4. The City Council approves allocation of $10.4 million from the Park Land Fund for acquisition of the Finch Property, together with such additional amounts as may be necessary for customary closing costs and related transaction expenses.

5. The City Council finds that the approval of the Exchange Agreement is exempt from CEQA pursuant to CEQA Guidelines sections 15316, 15325, and 15061(b)(3), as set forth above.

6. This resolution may be reviewed, modified, or revoked by subsequent action of the City Council at any time, consistent with applicable law. 297
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7. This resolution shall become effective immediately upon adoption.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 7th day of July, 2026, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
ATTEST:
________
Lauren Sapudar, City Clerk
________________________
Date
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1 EXCHANGE AGREEMENT AND JOINT ESCROW INSTRUCTIONS
THIS EXCHANGE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is entered into this __ day of ______, 2026 (“Effective Date”) by and between the CUPERTINO UNION SCHOOL DISTRICT, a public school district duly organized and validly existing under the Constitution and the laws of the State of California (“District”) and the CITY OF CUPERTINO, a California municipal corporation (“City”). District and City are sometimes hereinafter referred to individually as a "Party" and collectively as the “Parties.”

RECITALS
A. The District is the owner in fee, of approximately 1.48 acres of vacant land located at 10480 Finch Avenue, Cupertino, California 95014, commonly known as Assessor Parcel Number 375-40-067, and as more particularly described in the legal description attached to this Agreement as Exhibit A and depicted on Exhibit A-1 attached hereto (“District Property”).

B. Section 17536 of the Education Code authorizes the District’s Governing Board (“Board”) to exchange any of its real property for real property of another person or private business firm upon such terms and conditions as the Parties may agree, and in accordance with the procedural requirements of Education Code section 17536 et seq.

C. The District desires to exchange the District Property for real property to be selected by the District as set forth in this Agreement (“Exchange Property”) in accordance with the terms and conditions of this Agreement. Upon selection of the Exchange Property, pursuant to the terms of this Agreement, a legal description of the Exchange Property shall be attached to this Agreement as Exhibit A-2 The District Property and the Exchange Property are sometimes hereinafter referred to collectively as the "Properties" or each a “Property.” D. This Agreement shall be effective upon the last to occur of:
(i) the Board adopts a resolution by two-thirds vote of its members at a duly called Board meeting declaring its intent to enter into this exchange agreement with the City, in accordance with Education Code section 17537, and declared the District Property exempt surplus land within the meaning of Government Code sections 54221(b)(1) and 54221(f)(1)(C) (“Resolution of Intention”); and
(ii) The City Council adopts a resolution for the acquisition of the District Property pursuant to applicable law.

AGREEMENT
NOW THEREFORE, in consideration of the covenants and agreements set forth in this Agreement and incorporating the recitals above, the Parties agree as follows:

ARTICLE 1

EXCHANGE OF DISTRICT PROPERTY AND EXCHANGE PROPERTY

1.1 Agreement to Exchange. Subject to all the terms, conditions, and provisions of this Agreement, and for the consideration herein set forth, District and City agree to exchange the District Property and the Exchange Property, respectively, each including, without limitation, such Party's interest, if any, in all mineral, oil, gas and other hydrocarbon substances on and under the properties as well as all development rights, air rights, water, water rights and water 299
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2 stock relating to the Properties and any other easements, rights-of-way or appurtenances, used in connection with the beneficial use and enjoyment of the Properties.

1.2 Identification of Exchange Property. During the term of this Agreement, the District shall use good faith efforts to identify the Exchange Property. Within five (5) days after the expiration of the City Due Diligence Period (defined in Section 2.2.1), City shall provide the names of three (3) real estate brokers with extensive experience in commercial/residential income producing properties and with whom City has previously transacted business. The District, at its discretion and its financial responsibility, may utilize the services of all, some or none of the named brokers to identify potential exchange properties. City may also identify one or more properties currently owned by City (the “City Properties” or a “City Property”) for consideration by the District in accordance with Section 2 of this Agreement. City shall provide the District with the Due Diligence Materials (as defined in Section 2.1) for the City Properties, if any, and City's valuation of the fair market value of the interest to be acquired by the District in the City Properties, if any. Although City agrees to cooperate with the District in the selection of the Exchange Property, it is the responsibility of the District to identify the Exchange Property pursuant to this Agreement and to determine whether the fair market value of the Exchange Property (including the City Properties) is of equal value to the District Property. If the Exchange Property ultimately selected by the District is not a City Property, the District, not City, shall be solely responsible for contracting directly with the Property Owner of such Exchange Property.

City does not intend to, and is not required by this Agreement to, ever take title to any Exchange Property. Therefore, City shall not have any liability or obligation with respect to any circumstance or condition on any Exchange Property, whether before or after the Close of Escrow (as defined in Section 3.2). Without limiting the foregoing, City shall not have any liability for any act, condition or circumstance that the District or any of its employees, agents, representatives or contractors commits, creates or discovers on or at any Exchange Property, nor any obligation or liability to any Property Owner (as defined in Section 2.3.1.1) other than as expressly set forth in this Agreement.

1.3 Consideration. It is the intent of the Parties that the Exchange Property shall be of equal value to the District Property, and the District Property shall be conveyed in consideration for the Exchange Property. The value of the Exchange Property (“EP Exchange Value”) shall not exceed the DP Exchange Value (as defined in Section 1.3.1 below) unless the District determines, in its sole discretion, that it is willing to acquire a property worth more than the DP Exchange Value. In the event the Exchange Property is worth less than the DP Exchange Value, City shall pay to the District in cash the difference between the DP Exchange Value and the EP Exchange Value (“Additional Cash”). In the event the Exchange Property is worth more than the DP Exchange Value, the District shall be responsible for the payment of the difference between the EP Exchange Value and the DP Exchange Value. Notwithstanding the foregoing, in the event that the District has not identified the Exchange Property in sufficient time to permit the simultaneous closing of the Exchange Property with the closing of the District Property by the Closing Date (as defined in Section 3.2), City shall have the right to acquire the District Property for the cash consideration of the DP Exchange Value; provided, however, that the net proceeds of the DP Exchange Value (“DP Exchange Value Net Proceeds”) shall remain in a Holding Escrow (as defined in Section 3.2) after the Closing pursuant to Section 3.2 until such time as the District identifies and acquires the Exchange Property or the District determines, at its absolute sole discretion, that the DP Exchange Value New Proceeds shall be released to the District. The District shall not be subject to any penalty, fine, or additional charge for failure to identify the Exchange Property by the Closing Date. The District's failure to identify the Exchange Property shall not be construed as a breach of this Agreement or a condition to the District’s obligation to close on the transfer of the District Property to City.

1.3.1 District Property Exchange Value; No Additional Consideration. City and the District agree that the District Property valuation (“DP Exchange Value”) shall be Ten 300
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3 Million Four Hundred Thousand Dollars ($10,400,000). No further consideration or compensation shall be required by either Party except as expressly set forth in this Agreement.

1.4 Initial Deposit. Within three (3) business days after the Opening of Escrow, City shall deposit into Escrow the sum of Fifty Thousand Dollars ($50,000) (“Initial Deposit”). The Initial Deposit shall remain in Escrow and, following the expiration of the City Due Diligence Period, shall be deemed liquidated damages (pursuant to Section 6.1). If City timely terminates this Agreement on or before the expiration of the City Due Diligence Period in accordance with this Agreement, Escrow Holder shall return the Initial Deposit to the City.

ARTICLE 2

INSPECTIONS AND REVIEW

2.1 Delivery of Due Diligence Materials. Within ten (10) business days after the Opening of Escrow (as defined in Section 3.1), the District shall deliver to City, without representation or warranty as to the accuracy of the information contained therein, any and all documents, reports, agreements, or other items in its possession or control relating to the District Property or within its agents’ or representatives’ possession or control, including but not limited to (collectively, the "Due Diligence Materials"): (i) copies of surveys, engineering studies, plans, soil reports, environmental reports, maps, leases, service contracts or other material documents relating to the condition of the District Property that are in District's possession or control; and (ii) pursuant to Section 2.6, approved a Title Report. Within ten (10) days after City has identified any City Properties, City shall deliver to the District, without representation or warranty as to the accuracy of the information contained therein, copies of the Due Diligence Materials relating to the City Properties. Any Due Diligence Materials shall be provided to the other Party without any recourse or liability of any type or nature. Each Party assumes all risk of any kind with regard to the use of and reliance upon any of the Due Diligence Materials provided by the other Party. Neither Party is relying upon the other Party for any information related to, concerning, or involving the respective properties for this transaction, including, without limitation, the fair market value of the Properties.

2.2 Inspections.

2.2.1 City Due Diligence Period. The due diligence period for City shall begin on City's receipt of the Due Diligence Materials required to be delivered by the District pursuant to Section 2.1 and last until 5:00 p.m. Pacific Time on the date sixty (60) days thereafter ("City Due Diligence Period"). During the term of the Agreement, including without limitation during the City Due Diligence Period, City and its representatives, agents, engineers, consultants, contractors, and designees shall have the right to enter onto the District Property, for purposes of examining, inspecting and investigating the District Property and the feasibility of using the District Property for City's intended purposes, including the site, soil, subsurface soils, drainage, seismic and other geological and topographical matters, location of asbestos, toxic substances, hazardous materials or wastes, if any, and, at City's sole and absolute discretion, determining whether the District Property is acceptable to City. During the term of the Agreement, including without limitation during the City Due Diligence Period, City may, in City's sole and absolute discretion and cost, perform without limitation: (i) completion of environmental tests and studies, such as without limitation, a Phase I and Phase II environmental site assessments, and any additional tests, studies and assessments desired by City; (ii) engineering evaluations, including geotechnical evaluation, if needed or desired; (iii) compliance with the California Environmental Quality Act (“CEQA”), if applicable; (iv) any other surveys, engineering and soils tests and other tests, studies or inspections deemed necessary by City in its sole discretion and obtained at City's expense; and (v) review of any information and materials provided by the District pursuant to Section 2.1 above or elsewhere in this Agreement. City shall provide the District with copies of any third party inspection report prepared pursuant to this section. If City 301
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4 determines, in its sole judgment and discretion, that the District Property is not suitable for its intended purposes, City may, by written notice to District prior to the expiration of the City Due Diligence Period, terminate this Agreement and cancel the Escrow pursuant to Section 2.5.1.

2.2 District Due Diligence Period. The District shall have the same inspection rights as set forth in Section 2.1, including a sixty (60) day due diligence period ("District Due Diligence Period"), with respect to the Exchange Property(ies). If the Exchange Property is a City Property, the District’s review of the physical condition and feasibility of the Exchange Property(ies), may at the District’s sole and absolute discretion and cost, include without limitation: (i) completion of environmental tests and studies, such as without limitation, a Phase I and Phase II environmental site assessments, and any additional tests, studies and assessments desired by the District; (ii) engineering evaluations, including geotechnical evaluation, if needed or desired; (iii) compliance with the CEQA if applicable; (iv) any other surveys, engineering and soils tests and other tests, studies or inspections deemed necessary by the District in its sole discretion and obtained at the District’s expense; and (v) review of any information and materials provided by other Parties pursuant to Section 2.1 above or elsewhere in this Agreement. The District Due Diligence Period shall begin on the date the Exchange Property is identified by the District, as confirmed in writing to City. The Parties acknowledge and agree that the District may conduct due diligence for more than one potential Exchange Property and that the provisions set forth in this Section 2.2 shall apply to each such Exchange Property.

2.3 Conditions of Access to District Property and Exchange Property for Inspections. City and its agents, representatives and designees shall have the right with respect to the District Property, and the District and its agents, representatives and designees shall have the right with respect to the Exchange Property, if the Exchange Property is a City Property, to access such property during the term of this Agreement, including the Due Diligence Period, in accordance with the following terms and conditions:

2.3.1.1 Such Party (“Inspecting Party”) shall provide the Party that owns the applicable Property (“Property Owner”) with written notice of the dates on which the Inspecting Party or its representatives or designees intend to access the Exchange Property at least two (2) business days in advance of any access to the Exchange Property. Property Owner or its representative may be present for any inspections, tests or studies.

2.3.1.2 The Inspecting Party will permit only employees, agents, licensed contractors, consultants or other individuals who have a reasonable reason to be on the Property to enter upon the Exchange Property as a result of the Inspecting such Party’s actions.

2.3.1.3 The Inspecting Party will assume full responsibility for proper characterization, manifesting, storage and disposal of any materials or wastes generated as a result of any sampling conducted by or for the Inspecting Party, and following written request will provide the Party Owner a copy of documents evidencing these actions.

2.3.1.4 The Inspecting Party agrees to comply with all applicable laws, regulations, rules and permits pertaining to its investigations and testing on and of Exchange Property or any part thereof, including, but not limited to, the Occupational Health & Safety Act and all applicable environmental, health and safety laws and regulations, whether federal, state or local. The Inspecting Party shall obtain or cause its consultants to obtain, at Inspecting Party's sole cost and expense prior to commencement of any investigative activities on the Exchange Property, a policy of commercial general liability insurance covering liability of the Inspecting Party for claims of personal injury or property damage caused during any of Inspecting Party's investigative activities. Such policy of insurance shall be an occurrence policy and shall have liability limits of not less than Two Million Dollars ($2,000,000.00) combined single limit per 302
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5 occurrence for bodily injury, personal injury and property damage liability. Such insurance policy shall name Property Owner as an additional insured. The Inspecting Party agrees to indemnify, defend and hold harmless the Property Owner from any and all damages, claims, losses, liabilities, causes of action, proceedings, costs and expenses of any kind whatsoever (including, without limitation, attorneys' fees and fees of expert witnesses) for physical damage or personal injury to the extent caused by Inspecting Party or its agents, assignees, designees or representatives during their entry on the Property prior to the Close of Escrow; provided, however, the foregoing indemnity shall not apply with respect to any claims arising out of the mere discovery of any adverse condition at the Property, any preexisting conditions at the Exchange Property or any acts or omissions of Property Owner, its officers, directors, owners, agents or employees. The foregoing indemnity shall survive the Close of Escrow or the earlier termination of this Agreement.

2.3.1.5 Upon an Inspecting Party’s completion of any investigations and testing on and of an Exchange Property, the Inspecting Party shall promptly restore the Property to substantially the condition it was in prior to engaging in the work, including the repair or replacement of any and all physical damage to the Exchange Property to the extent caused by and during the Inspecting Party’s access; provided, however, that in no event shall an Inspecting Party have any obligation pursuant to this Section to remedy any pre-existing condition on or under the Exchange Property. The Inspecting Party agrees to promptly pay before delinquency for any and all labor and materials expended or used by the Inspecting Party or its agents, representatives or designees in connection with any and all investigations on a Property. In the event any mechanics’ liens are placed on an Exchange Property resulting from work by an Inspecting Party or its agents, representatives or designees, the Inspecting Party will take prompt action to remove or bond over such liens at the Inspecting Party’s sole expense and will indemnify, defend, protect and hold the Party Owner harmless from and against all such claims.

2.3.2 Extension of Due Diligence Periods. The Parties acknowledge that the activities contemplated during the City and District Due Diligence Periods shall be completed within the applicable Due Diligence Periods provided for in this Agreement, unless otherwise agreed by the Parties in writing.

2.4 AS-IS Acquisition. Based on the inspection rights set forth in the preceding paragraphs and in reliance on the due diligence of each Party, the District and City acknowledge and agree that, except for the limited warranties and representations expressly set forth in this Agreement, the exchange of the Properties is made solely on an AS- IS WHERE-IS BASIS, WITH ABSOLUTELY NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED. But for the foregoing understanding and agreement, the Parties would not have entered into this transaction. Each Party acknowledges that due to the expertise, experience and business acumen of both Parties and their respective consultants, each Party has the ability to conduct a complete and thorough due diligence of the respective Properties and would not close the transaction unless totally satisfied with the respective Property, and has otherwise conducted an exhaustive and complete due diligence which would enable the taking of the respective Property in an AS-IS WHERE-IS BASIS WITH ABSOLUTELY NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED. (except as specifically set forth in this Agreement.)

2.5 Termination During Due Diligence Period.

2.5.1 City’s Termination Notice. If, for any reason, City, in its sole and absolute discretion is dissatisfied with the District Property, City shall notify District and Escrow Holder in writing ("City's Termination Notice") on or before the expiration of the City Due Diligence Period of City's desire to terminate this Agreement and cancel the Escrow. Should City elect to terminate the Agreement before or at the conclusion of the City Due Diligence Period, then Escrow Holder shall immediately return the Initial Deposit to City and the District and City shall 303
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6 share equally in any cancellation costs imposed by the Escrow Holder, and neither Party shall have any further liability or obligations under this Agreement except as expressly stated to survive termination. City’s failure to deliver the City’s Termination Notice on or before the expiration of the City Due Diligence Period shall be conclusively deemed City’s approval of the District Property.

2.5.2 District’s Due Diligence Notice. District shall notify City and Escrow Holder in writing ("District's Due Diligence Notice") on or before the expiration of the District Due Diligence Period of District's approval or disapproval of the Due Diligence Materials applicable to the Exchange Property, the condition of the Exchange Property and District's investigations with respect thereto. District's disapproval of any of said items shall constitute District's election to terminate the Exchange Property transaction and cancel that Escrow. District's failure to deliver District's Due Diligence Notice on or before the expiration of the District Due Diligence Period shall be conclusively deemed District's approval thereof, provided District fails to deliver District's Due Diligence Notice within ten (10) days after District's receipt of written notice by City of said failure to deliver District's Due Diligence Notice on or before the expiration of the Due Diligence Period. In the event the District disapproves of the Exchange Property, the District shall continue to use good faith efforts to identify the Exchange Property in sufficient time to permit the Closing to occur by the Closing Date. However, if the District does not identify or is not prepared to close on the Exchange Property by the Closing Date, the provisions of Section 1.3 of this Agreement shall control.

2.6 Title Review. During each Parties' respective Due Diligence Period, each Party shall obtain a preliminary title report for each respective Property, together with copies of all written instruments creating the exceptions specified therein, and plat maps plotting all easements specified therein (collectively, and together with the Title Report delivered pursuant to Section

2.1, the "Title Reports"). City shall notify District in writing ("City's Objection Notice") no later than ten (10) days after City's receipt of the Title Report for the District Property of any objections City may have to the title exceptions contained in the Title Report for the District Property, which notice shall set forth the explanation for the disapproval and requested tasks and timelines to address the disapproved items. City's failure to provide District with a City's Objection Notice within said period shall constitute City's approval of all exceptions to title shown on the Title Report for the District Property, provided District provides City ten (10) days written notice of said failure to deliver City's Objection Notice within said period. District shall have a period of ten (10) days after receipt of City's Objection Notice in which to deliver written notice to City ("District's Notice") of District's election to either (i) agree to remove or cure the objected to items prior to the Close of Escrow, or (ii) decline to remove or cure any such title exceptions. If the District is unable or unwilling to eliminate the Defect (or to commit to do so by Close of Escrow) during such time period, then except with respect to Forbidden Defects, City's sole remedy shall be to elect, by written notice to the District and Escrow Agent on or before the date ten (10) business days after the later of the expiration of such 10-day period or the date the District gives City and Escrow Agent written notice that the District will not eliminate the Defect on or before the Close of Escrow, to either (a) terminate this Agreement, or (b) waive the Defect. Furthermore, for the purpose of this paragraph, District's cure may include the acquisition by District, at District's expense, of a title insurance endorsement related to the objected to exception reasonably acceptable to City. Any extension of the time to review the Title Report for the District Property shall only occur in strict accordance with the following paragraph. Except as otherwise provided in this Agreement, if this Agreement is cancelled pursuant to this paragraph, the earnest money and any interest thereon shall be refunded to City, this Agreement shall thereupon be null and void and of no force or effect and City and the District shall have no further obligations or liabilities hereunder. Notwithstanding the foregoing, District represents, warrants and agrees with respect to the District Property that as of the Close of Escrow the District Property shall not be subject to any of the following (hereinafter referred to as “Forbidden Defects”): (a) any mortgages, deeds of trust, security agreements, 304
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7 judgments, liens, or claims of lien, except for the lien of current real property taxes not yet due and payable; (b) any options, rights of first refusal or other title matters customarily deemed in the County in which the District Property is located to render real property unmarketable, (c) any leases or rights of possession; and (d) any Defects that the District has committed to eliminate on or before the Close of Escrow. In addition, District represents, warrants and agrees that as of the Close of Escrow, the District Property shall not be subject to any leases, rental agreements or other rights of occupancy of any kind, whether oral or written.

Upon the issuance of any amendment or supplement to the Title Report for the District Property which adds additional exceptions, or adds any new requirement, the foregoing right of review and approval shall also apply to said amendment or supplement; provided, however, that City's initial period of review and approval or disapproval of any such additional exceptions shall be limited to ten (10) business days following City's and its counsel's receipt of the instrument(s) creating such additional exceptions. The foregoing extension shall only be allowed for and pertain to the review of the new matter and City shall not be entitled to object to any exception that was in a previous title report for which the time for objection has already come and passed.

If the Exchange Property (i.e., the property acquired by the District) is a City Property (within the meaning of Section 1.2), then, in reciprocal nature with the foregoing, District shall notify City in writing ("District's Objection Notice") on or before the expiration of the Due Diligence Period of any objections District may have to the title exceptions contained in the Title Report for the City Property. District's failure to provide City with a District's Objection Notice within said period shall constitute District's approval of all exceptions to title shown on the Title Report for the City Property, provided City provides District ten (10) days written notice of said failure to deliver District's Objection Notice within said period. City shall have a period of ten (10) days after receipt of District's Objection Notice in which to deliver written notice to District ("City's Notice") of City's election to either (i) agree to remove or cure the objected to items prior to the Close of Escrow, or (ii) decline to remove or cure any such title exceptions. If City notifies District of its election to decline to remove and cure the objected to items, District shall have the right, by written notice delivered to City within ten (10) days after District's receipt of City's Notice, to agree to either (i) accept the City Property as the Exchange Property subject to the objected to items, in which event District shall take title at the Close of Escrow subject to the objected to items, without any adjustment to or credit against the EP Exchange Value or (ii) to continue to use good faith efforts to identify other Exchange Property for which the condition of title is acceptable to District in sufficient time to permit the Closing to occur by the Closing Date, then City may acquire the District Property for cash in accordance with Section 1.3 of this Agreement. Furthermore, for the purpose of this paragraph, City's cure may include the acquisition by City at City's expense a title insurance endorsement related to the objected to exception reasonably acceptable to the District. Any extension of the time to review the Title Report for the Exchange Property shall only occur in strict accordance with the following paragraph.

Upon the issuance of any amendment or supplement to the Title Report for the Exchange Property which adds additional exceptions, or adds any new requirement, the foregoing right of review and approval shall also apply to said amendment or supplement; provided, however, that District's initial period of review and approval or disapproval of any such additional exceptions shall be limited to ten (10) business days following District's and its counsel's receipt of the instrument(s) creating such additional exceptions. The foregoing extension shall only be allowed for and pertain to the review of the new matter and District shall not be entitled to object to any previously known exception or requirement for which the time for objection has already come and passed.

2.7 Existing Leases or Contracts on the District Property. After the Effective Date and prior to the Close of Escrow, the District shall, at the District’s expense, terminate all leases and 305
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8 rights of occupancy and any other contract on the District Property and all tenants and occupants shall vacate the District Property on or before the date thirty (30) days prior to the date of the close of escrow.

2.8 Natural Hazard Disclosure Report. Upon Opening of Escrow, Escrow Holder shall order and deliver to City a commercial natural hazard disclosure report from Disclosure Source for the District Property (“District Property NHD Report”). The District shall be responsible to pay for the District Property NHD Report. Upon location of an Exchange Property, Escrow Holder shall order at the District’s expense a NHD Report for the Exchange Property and deliver same to the District.

ARTICLE 3
ESCROW

3.1 Opening of Escrow. Within two (2) business days following the execution of this Agreement by District and City, the Parties shall open an escrow ("Escrow") with Chicago Title Company ("Escrow Holder"), at its offices located at 344 Walnut Avenue, Suite 116, Fremont, California, 94538; Attn: Vicky Guo at [email protected] or 510-494-7106, by causing an executed copy of this Agreement to be delivered to Escrow Holder. Escrow shall be deemed open on the date that a fully executed copy of this Agreement is delivered to Escrow Holder (“Opening of Escrow”). Escrow Holder shall sign and accept this Agreement on the execution page and provide the date of Opening of Escrow to each of the Parties pursuant to Section 8.4. Chicago Title Company (“Title Company”) shall also provide title insurance services as provided in this Agreement.

3.2 Close of Escrow; Closing Date. Escrow shall close on the date thirty (30) days after the expiration of the City Due Diligence Period (“Closing Date”), unless mutually extended by the Parties in writing, provided that the conditions to Closing described in Section 4 below have been satisfied. The terms the "Close of Escrow", and/or the “Closing” are used herein to mean the date the respective Grant Deed (as the term is defined in Section 3.4) are recorded in the Office of the County Recorder of Santa Clara County. Possession of the District Property shall be delivered to City at the Close of Escrow free and clear of all tenancies, lessees, occupants, licensees, and all possessory rights of any kind or nature. At the Close of Escrow, either (i) possession of the Exchange Property (and the Additional Cash, if applicable) shall be delivered to District free and clear of all tenancies, lessees, occupants, licensees, and all possessory rights of any kind or nature, except for any Permitted Exceptions, as set forth and defined in Section

4.1.4, or (ii) the DP Exchange Value New Proceeds shall be delivered to District or held in a postclosing holding Escrow (“Holding Escrow”) until an Exchange Property is identified and acquired, in the sole and absolute discretion of District, which shall be made evident by appropriate instructions to the Escrow Holder. The City shall have no rights with respect to the Holding Escrow.

3.3 Escrow Instructions. Only Sections 1, 2.6, 2.8, 3, 4.1, 4.2, 4.4, 4.5, 4.7, 5.3 and 8 constitute the escrow instructions to Escrow Holder. If required by Escrow Holder, the District and City agree to execute Escrow Holder’s standard escrow instructions, provided that the same are consistent with and do not conflict with the provisions of this Agreement. In the event of any such conflict, the provisions of this Agreement shall prevail as between the Parties. The terms and conditions in sections of this Agreement not specifically referenced above are additional matters for information of Escrow Holder, but about which Escrow Holder need not be concerned.

Buyer and Seller will receive Escrow Holder’s general provisions directly from Escrow Holder and will execute such provision upon Escrow Holder’s request. To the extent that the general provisions are inconsistent or conflict with this Agreement, the general provisions will control as to the duties and obligations of Escrow Holder only. The Parties agree to execute additional instructions, documents and forms provide by Escrow Holder that are reasonably necessary to 306
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9 close Escrow.

Escrow Holder shall deliver the City Title Policy to the City and instruct the Santa Clara County Recorder to mail the City Grant Deed to City at the address set forth in Section 8.4 after recordation. All funds received in this Escrow shall be deposited in one or more general escrow accounts of the Escrow Holder with any bank doing business in Santa Clara County, California, and may be disbursed to any other general escrow account or accounts. All disbursements shall be according to that Party’s instructions.

All funds deposited in Escrow shall be in “Good Funds” which means a wire transfer of funds, cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California.

3.4 Deliveries by City. No later than 1:00 p.m. on the business day preceding the Closing Date, if the Exchange Property is a City Property, City shall deliver to Escrow Holder:
(a) A grant deed to be attached as Exhibit “B-1” to this Agreement (“Grant Deed – Exchange Property”) conveying to District fee simple title to the Exchange Property, duly executed and acknowledged by the City, or owner of the Exchange Property;
(b) The Certificate of Acceptance in the form attached to the Grant Deed – District Property (as defined in Section 3.5);
(c) A certificate of non-foreign status in the form as required by Escrow Holder pursuant to Section 3.6.6;
(d) A Preliminary Change of Ownership (“PCOR”) as required by the County of Santa Clara for the District Property; and
(e) Any and all other sums (in Good Funds) and documents required by Escrow Holder to carry out and close the Escrow pursuant to this Agreement, including City's portion of prorations, if any.

3.5 Deliveries by District. No later than 1:00 p.m. on the business day preceding the Closing Date, District shall deliver to Escrow Holder:
(a) A grant deed in the form of Exhibit “B-2” attached to this Agreement ("Grant Deed – District Property") conveying to the City fee simple title to the District Property, duly executed and acknowledged by District;
(b) The Certificate of Acceptance in the form attached to the Grant Deed – Exchange Property (as defined in Section 3.4);
(c) A certificate of non-foreign status in the form required by Escrow Holder to be executed by the District pursuant to Section 3.6.6;
(d) A PCOR for the Exchange Property, if applicable; and (e) All other sums and documents required by Escrow Holder to carry out and close the Escrow pursuant to this Agreement, including the Escrow fees and District's portion of prorations, if any, and to close the transaction related to the Exchange Property if applicable.
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10 3.6 Closing, Recording and Disbursements. On or before the Closing Date, and when all of the conditions precedent to the Close of Escrow set forth in Section 4 of this Agreement have been satisfied or waived, in whole or in part, in writing, Escrow Holder shall take the actions set forth in this Section 3.6.

3.6.1 Recording. Escrow Holder shall cause the Grant Deeds to be recorded in the Official Records of Santa Clara County, California.

3.6.2 Disbursement of Funds. Escrow Holder shall disburse or hold the DP Exchange Value, less prorations and costs chargeable to District, if any, in accordance with the District's instructions which may be in a Holding Escrow.

3.6.3 Title Policy. Escrow Holder shall deliver (i) the City Title Policy (as defined in Section 4.2.4) to City; and (ii) the Exchange Title Policy (as defined in Section 4.1.4) to District.

3.6.4 Delivery of Documents to District and City. Escrow Holder shall deliver to the respective Parties a conformed copy of the respective Grant Deeds and any other documents (or copies thereof) deposited by the other Party with Escrow Holder pursuant to this Agreement.

The original of the Grant Deeds shall be returned to the respective Parties after recordation.

3.6.5 Real Property Taxes. With respect to the District Property, both Parties are tax exempt entities so real estate taxes do not need to be prorated. With respect to the Exchange Property which is not a City Property, the real estate taxes shall be prorated.

3.6.6 Non-Foreign Certificate. On or before Close of Escrow, each Party will deposit with Escrow Agent certificates in form reasonably satisfactory to Escrow Agent that provides the information required by Section 1445 of the Internal Revenue Code of 1986, as amended, and by Sections 18805 and 26131 of the California Revenue and Taxation Code, for an exemption to the withholding of taxes under those Sections, if and to the extent that such federal and/or state Sections are applicable. If a Party fails to provide any such required certificate, funds may be withheld from it in accordance with those Sections.

3.7 Payment of Costs.
a. District Property. With respect to the District Property, District shall pay (i)cost of the NHD Report, (ii) any transfer fees, and (iii) ½ of escrow fees. With respect to the District Property, City shall pay: (i) City Title Policy; (ii) any additional title charges pursuant to Section

4.2.4; and (iii) ½ of escrow fees.

Note to Escrow: No recording fees shall be charged as both Parties are exempt pursuant to Government Code Section 27387. In addition, the conveyance in this Agreement is exempt from documentary transfer tax pursuant to California Revenue and Taxation Code Section 11922 because the City, grantee, is a political subdivision acquiring title to the District Property. b. Exchange Property. With respect to the Exchange Property, the Property Owner shall pay (i) the NHD Report, (ii) any transfer fees, (iii) the Exchange Property Title Policy (as specified in Section 2.6), and (iv) ½ of escrow fees. With respect to the Exchange Property, District shall pay: (i) any additional title charges pursuant to Section 4.1.4; and (ii) ½ of escrow fees. District shall also pay all additional escrow fees imposed by Escrow for the Holding Escrow. c. Closing Statement. At least two (2) business days prior to the Closing Date, Escrow Holder shall furnish the District and the City with a preliminary Escrow closing statement which shall include each Party’s respective shares of costs with respect to the District Property. The preliminary closing statement shall be approved in writing by the Parties. As soon as reasonably 308
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11 possible following the Close of Escrow, Escrow Holder shall deliver a copy of the final Escrow closing statement to the parties.
d. Escrow Cancellation Fees. If this Agreement and the Escrow are terminated by a Party pursuant to a provision in this Agreement, the Parties shall split the escrow cancellation fee. If this Agreement and the Escrow are terminated due to a default by a Party, the default Party shall be solely responsible to pay the escrow cancellation fee. e. Attorney’s Fees. Each Party shall be responsible to pay the attorney fees of its legal counsel in the preparation and negotiation of this Agreement.

3.8 Authority of Executive Director. The Executive Director of the District or his/her designee, in his/her sole and exclusive discretion on behalf of the District, shall have authority to approve written requests for extending any deadline, waiving any requirements or amending this Agreement on behalf of the District.

3.9 Authority of City Manager. The City Manager of the City or his/her designee, in his/her sole and exclusive discretion on behalf of the City, shall have authority to approve written requests for extending any deadline, waiving any requirements or amending this Agreement on behalf of the City.

ARTICLE 4

CONDITIONS PRECEDENT TO CLOSE OF ESCROW

4.1 Conditions Precedent to District's Obligations. District's obligation to transfer the District Property and Close Escrow, are subject to the satisfaction or written waiver, in whole or in part, by District of each of the conditions precedent set forth in this Section 4.1.

4.1.1 Identity of Exchange Property. Subject to Section 1.2 of this Agreement, the District shall have identified the Exchange Property in sufficient time to permit the Closing to occur by the Closing Date; provided, however that if the District has not identified the Exchange Property in sufficient time to permit the Closing to occur by the Closing Date, or if the condition set forth in Section 4.1.4 is not satisfied by the Closing Date, City may acquire the District Property for cash in accordance with Section 1.3 of this Agreement.

4.1.2 City's Performance. City shall have performed all of the obligations required by the terms of this Agreement to be performed by City on or before the Close of Escrow. In the event District alleges that City is in default, District shall notify City in writing and describe in reasonable detail the alleged default in detail. City shall have a reasonable time, but not more than fifteen (15) business days, to cure any alleged default.

4.1.3 City Deliveries Made. City has deposited with Escrow Holder all documents required of City by this Agreement.

4.1.4 Exchange Property Title Policy. The Title Company has committed to issue to District an ALTA non-extended title policy, or at District's choice, an ALTA extended coverage owner's policy of title insurance ("Exchange Property Title Policy"), with liability in the amount of the EP Exchange Value, or greater if required in District's sole discretion but at District’s expense, showing fee title to the Exchange Property vested in the District, subject only to:
(a) the standard printed exceptions and exclusions contained in the form of the Title Policy specified by District as commonly used by Title Company; 309
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12 (b) title exceptions approved by District pursuant to Section 2.5; (c) title exceptions resulting from documents being recorded or delivered through Escrow pursuant to this Agreement; and
(d) any other exceptions approved in writing by District in its sole and absolute discretion.

The terms of sub-sections (a) through (d), inclusive, being herein collectively referred to as the "Permitted Exceptions."

4.1.5 Representations and Warranties. All representations and warranties made by City in this Agreement are true and correct as of the Closing as though made at that time. All such representations and warranties by City shall survive the Close of Escrow and recording of the grant deed for a period of eighteen (18) months.

4.2 Conditions Precedent to City's Obligations. City's obligation to exchange for the District Property, upon the Close of Escrow, shall be subject to the satisfaction or written waiver, in whole or in part, by City of each of the conditions precedent set forth in this Section 4.2.

4.2.1 District's Performance. The District shall have performed all of the obligations required by the terms of this Agreement to be performed by the District on or before the Close of Escrow. In the event City alleges that District is in default, City shall notify District in writing and describe in reasonable detail the alleged default in detail. District shall have a reasonable time, but not more than fifteen (15) business days, to cure any alleged default.

4.2.2 District Deliveries Made. District has deposited with Escrow Holder all documents required of District by this Agreement.

4.2.4 City Title Policy. Title Company has committed to issue to City an ALTA non extended, or at City's choice, an ALTA extended coverage owner's policy of title insurance ("City Title Policy"), with liability in the amount of the DP Exchange Value, showing fee title to the District Property vested in City, at City’s sole cost and expense and subject only to:
(a) the standard printed exceptions and exclusions contained in the form of the Title Policy specified by District as commonly used by Title Company; (b) title exceptions approved by City pursuant to Section 2.5 of this Agreement;
(c) title exceptions resulting from documents being recorded or delivered through Escrow pursuant to this Agreement; and
(d) any other exceptions approved in writing by City in its sole and absolute discretion.

The terms of sub-sections (a) through (d), inclusive, being herein collectively referred to as the "Permitted Exceptions."

4.2.5 Representations and Warranties. All representations and warranties made by District in this Agreement shall be true and correct as of the Closing as though made at that time. All such representations and warranties by the District shall survive the Close of Escrow and recording of the grant deed for a period of eighteen (18) months. 310
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13 4.2.6 Existing Leases. On or before the date thirty (30) days prior to the Close of Escrow, the District shall vacate all portions of the District Property and shall terminate all leases, rental agreements and other rights of occupancy encumbering the District Property and shall be ready, willing and able to deliver the District Property to City at Close of Escrow free and clear of all leases, agreements, occupancies and occupants.

4.2.7 Exchange Property Owner Obligations. If the Exchange Property has been identified, the Property Owner shall have performed all of the obligations to be performed by the Property Owner pursuant to or required by the terms of this Agreement as well as any other agreement relating to the transfer of the Exchange Property.

4.2.8 Personal Property. Prior to the Close of Escrow, the District shall remove or cause to be removed from the District Property all personal property currently located on the District Property. However, if there is any personal property on the District Property as of the date scheduled for the Close of Escrow, then in addition to all other rights and remedies available to City at law or in equity (a) if City nevertheless elects to close Escrow, then upon the Close of Escrow, such personal property shall be deemed abandoned by the District and, at the election of City, shall be the property of City, and (b) upon written demand from City, whether before or after the Close of Escrow, the District, at the District’s expense, immediately shall remove any such personal property from the District Property.

4.3 Hazardous Materials; Environmental Compliance. As a result of the Parties' respective inspections pursuant to Section 2.2, each Party intends to satisfy itself that the District Property and Exchange Property, as applicable, is not in violation of any federal, state, or local law, ordinance, or regulation relating to Hazardous Materials, industrial hygiene, or to the environmental conditions on, under, or about the respective District Property or Exchange Property, or any portion thereof, including, but not limited to, soil and groundwater conditions ("Environmental Laws"). If, at any time prior to the expiration of the City Due Diligence Period, City determines that the District Property, or any portion thereof, is in violation of said Environmental Laws, City may elect to terminate this Agreement and cancel the Escrow by delivering written notice to that effect to the District and Escrow Holder, thereby rendering this entire Agreement invalid, void, and unenforceable. If at any time prior to the expiration of the District Due Diligence Period, the District determines that the Exchange Property, or any portion thereof, is in violation of said Environmental Laws, the District shall have the right to continue to locate an alternative Exchange Property or, at the District's sole discretion, have the DP Exchange Value retained in escrow at the Closing pursuant to Section 1.3, but in no event shall the District be permitted to terminate this Agreement solely on such basis so long as the District has the option to continue to locate an alternative Exchange Property or receive the DP Exchange Value in cash. The term "Hazardous Materials" when used in this Agreement shall mean any hazardous waste, hazardous substance, hazardous materials or toxic substances as defined, as of the Closing Date, in any federal, state, or local statute, ordinance, rule, or regulation applicable to the Property, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (Title 42 United States Code sections 9601- 9675), the Resource Conservation and Recovery Act (Title 42 United States Code sections 6901- 6992k), the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health and Safety Code sections 25300-25395), Hazardous Waste Control Law (Health and Safety Code section 25100-25250.25); the Hazardous Materials Transportation Act, as amended (Title 49 United States Code sections 1801-1819); and any substance defined as "hazardous waste" in Health and Safety Code section 25117 or as a "hazardous substance" in Health and Safety Code section 25316, and in the regulations adopted and publications promulgated under these laws. The term Hazardous Materials shall also include asbestos or asbestos-containing materials, radon gas, and petroleum or petroleum fractions, whether or not defined as a hazardous waste or hazardous substance in any such statute, ordinance, rule, or regulation as of the Closing Date. 311
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14 4.4 Satisfaction of Conditions. Where satisfaction of any of the foregoing conditions requires action by District or City, each Party shall use its diligent best efforts, in good faith, and at its own cost, to satisfy such condition. Where satisfaction of any of the foregoing conditions requires the approval of a Party, such approval shall be in such Party's sole and absolute discretion.

4.5 Waiver. District may at any time or times, at its election, waive any of the conditions set forth in Section 4.1 above to its obligations hereunder, but any such waiver shall be effective only if contained in a writing signed by District and delivered to City. City may at any time or times, at its election, waive any of the conditions set forth in Section 4.2 above to its obligations hereunder, but any such waiver shall be effective only if contained in a writing signed by City and delivered to District.

4.6 Compliance with California Law. The Close of Escrow shall be conditioned upon compliance with all applicable California laws relating to the acquisition of real property.

4.7 Failure of Contingency. Neither Party shall be obligated to close Escrow pursuant to this Agreement unless and until all contingencies in its favor set forth in this Agreement are satisfied or waived in writing. To the extent that the failure of a contingency in a Party’s favor is the result of a breach or default by another Party, the non-defaulting Party(ies) shall have all rights and remedies provided in this Agreement against the defaulting Party.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES-BROKERAGE COMMISSIONS

5.1 District's Representations and Warranties. District hereby makes the following representations and warranties to City, each of which (i) is material and relied upon by City in making its determination to enter into this Agreement, (ii) is to the actual knowledge of District true in all respects as of the Effective Date and shall be true in all respects on the Closing Date, and (iii) shall survive the Close of Escrow for eighteen (18) months:
(a) The District is a school district duly organized and validly existing under the laws of the State of California, and this Agreement and the execution and delivery thereof by the person designated below have been specifically authorized by the Board. District has full right, power, and authority to enter into this Agreement and to perform District's obligations hereunder. This Agreement and all other documents delivered by District to City now or at the Close of Escrow, have been or will be duly executed and delivered by District and are legal, valid, and binding obligations of District, sufficient to convey to City good and marketable title to the District Property, are enforceable in accordance with their respective terms, and do not materially violate any provision of any agreement to which District is a party.
(b) There are no pending or known threatened actions, suits, writs, injunctions, decrees, legal proceedings or governmental investigations against or affecting the District Property or relating to the ownership, maintenance, use or operation of the District Property.
(c) The District has not received any written notices nor has any actual knowledge of any violation of any laws, ordinances, rules, regulations or requirements of any governmental agency, body or subdivision affecting or relating to the District Property.
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15 (d) There are no written leases, rights of first refusal, or other agreements relating to the right of possession and/or occupancy and/or use of or otherwise affecting the District Property by any person or entity, except for matters of record approved by City pursuant to Section 2.5.
(e) District is not actually aware that the District Property, or District, are in violation of any applicable Federal, State or local statute, ordinance, order, requirement, law, or regulation materially adversely affecting the District Property or construction of any improvement thereon. District has received no written notice of any such violation of applicable law. City shall make its own independent determination of the feasibility of the use of the District Property for City's intended use.
(f) District has not personally caused or knowingly permitted any contamination by Hazardous Materials (as defined in Section 4.3) to occur on, at, about, or within the District Property, or any portion thereof, or otherwise knows of any such contamination of Hazardous Materials on, at, about, or within the District Property, or any portion thereof.
(g) The District has not received any written notice from any governmental agency or entity of, and has no knowledge of, any pending, threatened or contemplated action of eminent domain or any other public or quasi-public taking in connection with the District Property.
(h) The District has no knowledge of any existing, pending, threatened or contemplated actions or circumstances that would materially interfere with the development of the District Property for City's intended purposes, other than as expressly stated in this Agreement.

If District becomes aware of any act or circumstance which would change or render incorrect, in whole or in part, any representation or warranty made by District hereunder, whether as of the Effective Date or any time thereafter through the Closing Date, District will give immediate written notice of such changed fact or circumstance to City, but such notice shall not release District of any liabilities or obligations with respect thereto. For the purpose of the foregoing warranties and representations, the knowledge requirement shall be based on actual written notice to District's designated person in a form which would provide actual notice to a person without a duty of inquiry. The District's designated person is solely limited to Carrie Andrews personally and does not include her or any of District's agents, advisors or consultants.

5.2 City's Representations and Warranties. City hereby makes the following representations and warranties to District, each of which (i) is material and relied upon by District in making its determination to enter into this Agreement, (ii) is to the actual knowledge of City true in all respects as of the Effective Date and shall be true in all respects on the Closing Date, and (iii) shall survive the Close of Escrow for eighteen (18) months. With respect to any warranty or representation set forth in Section 5.2(b) through (f), inclusive, related to the “Exchange Property” such representation and warranty shall only apply if the Exchange Property (i.e., the property acquired by the District) is owned by City (i.e., one of the City Properties as defined in Section 1.2):
(a) City has full right, power, and authority to enter into this Agreement and to perform City's obligations hereunder. This Agreement and all other documents delivered by City to District now or at the Close of Escrow, have been or will be duly executed and delivered by City and are legal, valid, and binding obligations of City, sufficient to convey to District good and marketable title to the Exchange 313
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16 Property, if it is a City Property, are enforceable in accordance with their respective terms, and do not materially violate any provision of any agreement to which City is a Party.
(b) There are no pending or known threatened actions, suits, writs, injunctions, decrees, legal proceedings or governmental investigations against or affecting the Exchange Property or relating to the ownership, maintenance, use or operation of the Exchange Property.
(c) City has not received any written notices nor has any actual knowledge of any violation of any laws, ordinances, rules, regulations or requirements of any governmental agency, body or subdivision affecting or relating to the Exchange Property.
(d) There are no written leases, rights of first refusal, or other agreements relating to the right of possession and/or occupancy of the Exchange Property by any person or entity, except for matters of record approved by District pursuant to Section

2.5. (e) City is not actually aware that the Exchange Property, or City, are in violation of any applicable Federal, State or local statute, ordinance, order, requirement, law, or regulation materially adversely affecting the Exchange Property or construction of any improvement thereon. City has received no written notice of any such violation of applicable law. District shall make its own independent determination of the feasibility of the use of the Exchange Property for District's intended use. (f) City has not personally caused or knowingly permitted any contamination by Hazardous Materials (as defined in Section 4.3) to occur on, at, about, or within the Exchange Property, or any portion thereof, or otherwise knows of any such contamination of Hazardous Materials on, at, about, or within the Exchange Property, or any portion thereof.
(g) City has not received any written notice from any governmental agency, or entity of, and has no knowledge of, any pending, threatened or contemplated action of eminent domain or any other public or quasi-public taking in connection with the Exchange Property, if the Exchange Property is owned by City. (h) City has no knowledge of any existing, pending, threatened or contemplated actions or circumstances that would materially interfere with the District’s use of the Exchange Property, if the Exchange Property is owned by City, other than as expressly stated in this Agreement.

If City becomes aware of any act or circumstance which would change or render incorrect, in whole or in part, any representation or warranty made by City hereunder, whether as of the Effective Date or any time thereafter through the Closing Date, City will give immediate written notice of such changed fact or circumstance to District, but such notice shall not release City of any liabilities or obligations with respect thereto. For the purpose of the foregoing warranties and representations, the knowledge requirement shall be based on actual written notice to City's designated person in a form which would provide actual notice to a person without a duty of inquiry. City's designated person shall be the City Manager, personally, and shall not include any of City's agents, advisors or consultants.

5.3 Brokerage Commissions. There shall be no real estate commissions paid or owed by either District or City. Each Party represents and warrants to the other that it has not dealt with 314
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17 any broker, agent or finder in connection with this Agreement in any manner that would give rise to any claim for brokerage commissions or finder's fees against the other Party. Each Party shall indemnify, defend and hold harmless the other Party from and against any and all costs and liabilities including, without limitation attorneys' fees, for causes of action or proceedings which may be instituted by any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the indemnifying Party in connection with this Agreement.

The foregoing representation and indemnity shall survive the termination of this Agreement.

ARTICLE 6

DEFAULT

6.1 Liquidated Damages. BOTH PARTIES ACKNOWLEDGE AND AGREE THAT

DAMAGES THE DISTRICT SHALL SUSTAIN AS A RESULT OF ANY SUCH DEFAULT WILL BE EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN. THE PARTIES HEREBY

AGREE THAT LIQUIDATED DAMAGES IN THE AMOUNT OF THE INITIAL DEPOSIT (AS SET FORTH IN SECTION 1.4) SHALL BE RELEASED TO THE DISTRICT. CITY AND THE

DISTRICT AGREE THAT THE DISTRICT'S RIGHT TO RETAIN THE INITIAL DEPOSIT

SHALL BE THE SOLE REMEDY OF THE DISTRICT IN THE EVENT OF SUCH A DEFAULT UNDER THIS AGREEMENT BY CITY. THE PAYMENT OF SUCH AMOUNT IS NOT

INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE §3275 OR §3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO THE DISTRICT UNDER CALIFORNIA CIVIL CODE §§1671, 1676 AND 1677. THE DISTRICT WAIVES ANY RIGHT TO SPECIFICALLY ENFORCE CITY’S

OBLIGATION TO PURCHASE THE DISTRICT PROPERTY (INCLUDING WITHOUT LIMITATION THE PROVISIONS OF CIVIL CODE SECTIONS 1680 AND 3389), AND

WAIVES ANY RIGHT TO SEEK, CLAIM OR OBTAIN PUNITIVE DAMAGES OR SPECIAL OR

CONSEQUENTIAL DAMAGES OR ANY OTHER DAMAGES OR REMEDY FOR SUCH A BREACH BY CITY. NOTHING IN THIS AGREEMENT SHALL BE DEEMED TO LIMIT CITY’S LIABILITY TO THE DISTRICT UNDER THE INDEMNIFICATION IN SECTION 2.2 ABOVE OR FOR ATTORNEYS' FEES AND COSTS AS PROVIDED IN SECTION 8.3 BELOW. ANY

AND ALL BREACHES OR DEFAULTS BY CITY OF ANY NATURE OR KIND SHALL BE SUBJECT TO NOTICE AND RIGHT TO CURE WITHIN THE FIFTEEN (15) DAY CURE PERIOD SET FORTH IN SECTION 4.1.2.

DISTRICT’S INITIALS ____ CITY’S INITIALS ___

6.2 District's Default. In the event the District shall breach or default under any of the terms and provisions of this Agreement (after any applicable notice and 15-day cure period set forth in Section 4.2.1), City shall have the right, but not the obligation, in addition to any other rights or remedies which it may have at law or in equity, to (a) terminate this Agreement and the Escrow created hereby, in which event the Initial Deposit, and City shall be entitled to the immediate refund of any funds deposited by City into Escrow or released to District for or related to the District Property, including all interest earned thereon; and thereafter neither Party will have any further rights or obligations hereunder except those which are expressly stated to survive such termination, or (b) pursue the right of specific performance to obtain the District Property. For clarification, City shall have the right to terminate this Agreement and receive the Initial Deposit without prejudice to City’s claims against the District for the District’s breach of this Agreement.
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18 ARTICLE 7

RIGHT OF FIRST REFUSAL
INTENTIONALLY DELETED.

ARTICLE 8

MISCELLANEOUS

8.1 Costs of Inspections. All costs related to the Parties' due diligence inspections and testing, and production of and/or reproduction of the Due Diligence Materials shall be the sole responsibility of the Party expending such costs.

8.2 California Law. This Agreement shall be governed by and the rights, duties and obligations of the parties shall be determined and enforced in accordance with the laws of the State of California.

8.3 Attorneys' Fees. If either Party files any action or brings any proceedings against the other(s) arising out of this Agreement, or is made a party to any action or proceeding brought by a third party in connection with this Agreement, then, as between the Parties, the prevailing party shall be entitled to recover, in addition to its costs of suit and damages, reasonable attorneys' fees to be fixed by the court. The “prevailing party” shall be the Party who is entitled to recover its costs of suit, whether or not suit proceeds to final judgment.

8.4 Notice. Any notice required or permitted to be given under this Agreement shall be deemed to have been given, served and received if given in writing and personally delivered or either deposited in the United States mail, registered or certified mail, postage prepaid, return receipt required, or sent by overnight delivery, or electronic mail addressed as follows:

To District: Cupertino Union School District
10301 Vista Drive
Cupertino, CA 95014
Attn: Superintendent
With a copy to: Dannis Woliver Kelley
200 California Street, Suite 400
San Francisco, CA 94111
Attn: Clarissa R. Canady, Esq.

Email: [email protected]
To City: City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Attn: City Manager
Email: [email protected]
With a copy to: City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Attn: Floy Andrews, City Attorney
Email: [email protected]
Any notice personally given shall be effective upon receipt. Any notice sent by overnight delivery service shall be effective the business day next following delivery thereof to the overnight delivery service. Any notice given by mail shall be effective three (3) business days after deposit 316
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19 in the United States mail. Copied recipients of notices may be provided their copies via email. If transmitted by email (with a PDF attachment), notice shall be given effective upon confirmation of transmission during normal business hours or, if transmission after normal business hours, then on the following business day.

8.5 Authority. The person(s) executing this Agreement warrant on behalf of a Party that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which said Party is bound.

8.6 Execution in Counterpart. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all Parties hereto, notwithstanding that all Parties are not signatories to the original or the same counterpart.

8.7 Assignment. No Party shall, voluntarily or by operation of law, assign, or otherwise transfer any of its rights or obligations under this Agreement, including, without limitation, transferring ownership of any Property to another Party (except as provided in this Agreement), without obtaining the prior written consent of the other Party, which consent may be withheld by the other Party in its sole discretion. The preceding sentence shall not apply to retaining agents, consultants or subcontractors to perform some of a Party’s obligations under this Agreement for and on behalf of such Party.

8.8 Third Party Beneficiaries. Nothing in this Agreement shall be construed to confer any rights upon any person or entity not a signatory to this Agreement.

8.9 Binding on Heirs. This Agreement shall be binding upon the Parties hereto and their respective heirs, representatives, transferees, successors, and assigns.

8.10 Time of the Essence. Time is of the essence for each provision of this Agreement in which time is an element.

8.11 Time. All periods of time referred to in this Agreement shall include all Saturdays, Sundays and state or national holidays, unless the period of time specifies business days, provided that if the date or last date to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or state or national holiday, such act or notice may be timely performed or given on the next succeeding day that is not a Saturday, Sunday or state or national holiday.

8.12 Cooperation with Further Documents. The Parties each acknowledge that it may be necessary to execute documents other than those specifically referred to in this Agreement to complete the transaction. Both Parties hereby agree to cooperate with each other by executing such other documents or taking such other action as may be reasonably necessary to complete this transaction in accordance with the intent of the Parties as evidenced in this Agreement.

8.13 Condemnation. In the event the District Property is taken, in whole or in part, or designated to be taken by condemnation proceedings, or proceedings in lieu thereof, prior to the Close of Escrow, City shall have until the Close of Escrow within which to elect to either cancel this Agreement and receive a refund of City's Initial Deposit or to Close Escrow without reduction in the DP Exchange Value, in which event the District shall assign to City all rights to condemnation awards in form reasonably satisfactory to City.

8.14 Entire Agreement of Parties. This Agreement constitutes the entire Agreement between the parties and supersedes all prior discussions, negotiations and agreements, whether 317
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20 oral or written. This Agreement may be amended or modified only by a written instrument executed by the Parties.

8.15 Waiver. No waiver by a Party of any provision of this Agreement shall be considered a waiver of any other provision or of any subsequent breach of the same or any other provision, including the time for performance of any such provision. The exercise by a Party of any remedy provided in this Agreement or at law shall not prevent the exercise by that Party of any other remedy provided in this Agreement or at law or in equity, except as otherwise expressly provided in this Agreement.

8.16 Effect of Recitals. The Recitals above are deemed true and correct, are hereby incorporated into this Section as though fully set forth herein, and the Parties acknowledge and agree that they are each bound by same.

8.17 Section References. Any reference to any section of this Agreement cited without a decimal includes all sections following the cited section. For example, a reference to Section 5 includes 5.1, 5.1(a) et seq.

8.18 Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

8.19 Venue. Any actions or proceedings arising under, growing out of, or in any way related to this Agreement shall be instituted and prosecuted only in courts located in the County of Santa Clara, State of California, and each Party expressly waives its right, under part II, title IV of the California Code of Civil Procedure, to cause any such actions or proceedings to be instituted or prosecuted elsewhere.

8.20 Interpretation. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto.

8.21 Covenants to Survive Escrow. The covenants and agreements contained in this Agreement that by their terms or nature are intended to survive the Close of Escrow shall survive the Close of Escrow.

8.22 Conflicts of Interest. No director, officer, official, representative, agent or employee of District or City shall have any financial interest, direct or indirect, in this Agreement.

8.23 Nondiscrimination. There shall be no discrimination by the Parties against any person on account of race, color, religion, sex, marital status, national origin, or ancestry in the performance of their respective obligations under this Agreement.

8.24 Rights and Remedies are Cumulative. Except as may be otherwise expressly stated in this Agreement (which includes the liquidated damage provision in Section 6.1), the rights and remedies of the Parties are cumulative, and the exercise by any Party of one or more of its right or remedies shall not preclude the exercise by it, at the same time or at different times, of any other rights or remedies for the same default or any other default by another Party.

8.25 Parties Represented by Counsel. The Parties acknowledge that: (a) neither Party is in a significantly disparate bargaining position in relation to the other Party; and (b) the District and City are each represented by legal counsel in connection with the transactions contemplated by this Agreement.
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21 8.26 Electronic Execution. This Agreement may be executed electronically in compliance with UETA and ESIGN using a qualified national service provider such as DocuSign or AdobeSign.

8.27 Exhibits. Exhibits A, A-1, A-2, and B-2 , attached hereto, as well as B-1, to be attached, are incorporated herein by reference.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized officers, as of the Effective Date.

DISTRICT:

CUPERTINO UNION SCHOOL DISTRICT, a
public school district
By: _____________________
Satheesh Madhathil, Board President
Dated: _________________, 2026
ATTEST:

By: ____________________
Sylvia Leong, Board Clerk
APPROVED AS TO FORM:

DANNIS WOLIVER KELLEY
By: _________________
Clarissa Canady, Esq.

District Counsel
ACCEPTED BY ESCROW HOLDER:

CHICAGO TITLE COMPANY,
a California corporation
By: _________________________
__________, Escrow Officer
Escrow Opened Date: _____________,
2026
CITY:

CITY OF CUPERTINO,
a California municipal corporation
By: _______________________
Tina Kapoor, City Manager
Date: _________________, 2026
ATTEST:

By: ___________
Lauren Sapudar, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
By: __________________________
Floy Andrews, City Attorney
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1 EXHIBIT A
Legal Description of District Property
That certain real property in the City of Cupertino, County of Santa Clara, State of California legally described as follows
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1 EXHIBIT A-1
Visual Depiction of District Property
District Property
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1 EXHIBIT A-2
Legal Description of the Exchange Property
[Exhibit to be completed after the Effective Date pursuant to Section 1.2 if Exchange Property is confirmed by District.]
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1 EXHIBIT B-1
Grant Deed – Exchange Property
[Exhibit to be completed after the Effective Date pursuant to Section 3.4 if Exchange Property is confirmed by District.]
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EXHIBIT B-2
Grant Deed – District Property

FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
City Clerk
_________________________________________________________________________

GRANT DEED
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, CUPERTINO UNION SCHOOL DISTRICT, a public school district duly organized and validly existing under the Constitution and the laws of the State of California (“Grantor”) hereby grants to the CITY OF CUPERTINO, a California municipal corporation (“Grantee”) that certain real property in the City of Cupertino, County of Santa Clara, State of California, legally described on Exhibit A attached hereto and incorporated herein by reference (“Property”).

IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.

GRANTOR:

CUPERTINO UNION SCHOOL DISTRICT, a
public school district
By: _____________________
Satheesh Madhathil,
Board President
Dated: _________________, 2026
ATTEST:

By: ________________
Sylvia Leong, Board Clerk
APN 375-40-067 (Space Above This Line for Recorder’s Office Use Only)

THE UNDERSIGNED GRANTOR
DECLARES:

Documentary Transfer Tax is: $-0-
pursuant to R&T Code Section 11922
(Exempt from Recording Fee per Gov. Code
§6103)

NOT TO BE EXECUTED UNTIL CLOSING
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CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by Grant Deed executed by CUPERTINO UNION SCHOOL DISTRICT, a public school district duly organized and validly existing under the Constitution and the laws of the State of California as “Grantor” to the CITY OF CUPERTINO, a municipal corporation (“City”), is hereby accepted by the undersigned officer and agent of City and the City consents to the recording of the Grant Deed.

Signed and dated on _____________, 2026 at City of Cupertino, California.

CITY:

CITY OF CUPERTINO, a municipal corporation
By: ___________________________
Tina Kapoor, City Manager
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1 EXHIBIT A TO GRANT DEED

LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Cupertino, County of Santa Clara, State of California legally described as follows:
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1 STATE OF CALIFORNIA )
) ss.

COUNTY OF ____________ )
On _________________, 2026 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
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CITY OF CUPERTINO
Agenda Item
26-15232 Agenda Date: 7/7/2026
Agenda #: 5.

Subject: Approval of June 15, 2026 City Council meeting minutes.

Approve the June 15, 2026 City Council meeting minutes.

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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Monday, June 15, 2026

SPECIAL MEETING
At 5:03 p.m., Mayor Moore called the special City Council Meeting to order in City Hall Conference Room C, 10300 Torre Avenue, Cupertino, CA 95014 and Teleconference Location Pursuant to Gov. Code 54953(b)(2): Palazzo Hotel Lobby 3325 Las Vegas Blvd S, Las Vegas, NV 89109.

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 and that the location was open to the public. He further confirmed that he had posted the notice of the meeting at his remote location, 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 comments or address the Council.

Mayor Moore opened the public comment period and, seeing no one, closed the public comment period.

CLOSED SESSION

1. Subject: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9 (1 case)
Council met with legal counsel on the anticipated litigation.

OPEN SESSION REPORT REGARDING CLOSED SESSION
No report was given.
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ADJOURNMENT
At 6:24 p.m., Mayor Kitty Moore adjourned the Special City Council Meeting.

Minutes prepared by:
_________________________
Lauren Sapudar, City Clerk
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CITY OF CUPERTINO
Agenda Item
25-14678 Agenda Date: 7/7/2026
Agenda #: 6.

Subject: Approval of June 16, 2026 City Council meeting minutes.

Approve the June 16, 2026 City Council meeting minutes.

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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Tuesday, June 16, 2026

SPECIAL MEETING
At 5:45 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): Fairfield by Marriott Inn & Suites, Hotel Lobby Business Center, 130 W 400 S, Salt Lake City, UT 84101.

ROLL CALL

Present: Mayor Kitty Moore, Vice Mayor Liang Chao, and Councilmembers J.R. Fruen (participated virtually), Sheila Mohan and R “Ray” Wang (5:47 p.m.).

Councilmember Fruen confirmed that he was in the noticed public location and that the location was open to the public. He further confirmed that he had posted the notice of the meeting at his remote location, 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 comments or address the Council.

STUDY SESSION

1. Subject: A study session for City Council to consider existing designations, zoning corrections, and state law protections for recreational facilities and parkland sites.

Recommended Action: Receive presentation and provide direction.

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

Senior Planner, Gian Martire gave a presentation and Assistant Director of Community Development, Luke Connolly was also present.

Councilmembers asked clarifying questions.

Mayor Moore opened the public comment period and, seeing no one, closed the public 334
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comment period.

Councilmembers asked questions and made comments.

MOTION: Moore moved and Chao seconded to direct staff to return to Council with the following proposed zoning and land use designation changes with site maps, and include any other applicable parcels not included on the list provided in the staff report. • APN 326-01-051: Need map and further discussion.
• APN 326-37-047: PR, Parks and Open Space
• APN 356-07-059: PR, Parks and Open Space
• APN 356-05-005: PR, Parks and Open Space
• APN 326-17-004: PR, Parks and Open Space (as is)
• APN 323-36-021: R1C, Public Facilities (as is)
• APN 357-12-001: PR, Parks and Open Space
• Blackberry Farm Golf Course: PR, Parks and Open Space (as is) • Blackberry Farm Park: PR, Parks and Open Space (as is) • Canyon Oak Park: PR, Parks and Open Space
• City Hall Annex: BA, Public Facilities
• Civic Center: Broken out to include:
 Library: PR, Parks and Open Space
 Civic Center Plaza: PR, Parks and Open Space
• Corp Yard: BA, Public Facilities (as is)
• Creekside Park: PR, Parks and Open Space
• Cupertino Sports Center: PR, Parks and Open Space (as is) • Franco Park: PR, Parks and Open Space; BA Public Facilities, (Traffic Yard) (as is) • Hoover Park: PR, Parks and Open Space (as is)
• Jollyman Park: PR, Parks and Open Space (as is)
• Lawrence Mitty: PR, Parks and Open Space (as is)
• Linda Vista Park: PR, Parks and Open Space (as is)
• Little Rancho Park: PR, Parks and Open Space
• Mary Avenue Villas: R4, Residential – High/Very High Density (as is) • McClellan Ranch: PR, Parks and Open Space (as is)
• Memorial Park: PR, Parks and Open Space
• Monta Vista Recreation Center: PR, Parks and Open Space (as is) • Municipal Water Tanks: BA, Public Facilities (as is)
• Nathan Hall Tank House: PR, Parks and Open Space (as is) • Portal Park: PR, Parks and Open Space designation (as is) • Quinlan Community Center: PR, Parks and Open Space
• San Jose Water Company: BA, Public Facilities
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the size of each lot. (Moore accepted the friendly amendment) FRIENDLY AMENDMENT: Moore made a friendly amendment directing staff to include more information about P(BA) vs. BA zoning designations. (Chao accepted the friendly amendment)
The motion, as amended, passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan and Wang. Noes: None. Abstain: None. Absent: None.

ADJOURNMENT
At 6:33 p.m., Mayor Kitty Moore adjourned the Special City Council Meeting.

REGULAR MEETING

CALL TO ORDER
At 6:47 p.m., Mayor Moore called the Regular 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): Fairfield by Marriott Inn & Suites, Hotel Lobby Business Center, 130 W 400 S, Salt Lake City, UT 84101.

ROLL CALL

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

Councilmember Fruen confirmed that he was in the noticed public location and that the location was open to the public. He further confirmed that he had posted the notice of the meeting at his remote location, 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 comments or address the Council.

CLOSED SESSION REPORT
City Attorney Floy Andrews announced no reportable action taken during the closed session held on June 15, 2026, at 5:00 p.m.

CEREMONIAL ITEMS – None

POSTPONEMENTS AND ORDERS OF THE DAY
MOTION: Moore moved and Fruen seconded to reorder the agenda to hear Item No. 7 prior 336
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to Item No. 6. The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan and Wang. Noes: None. Abstain: None. Absent: None.

ORAL COMMUNICATIONS
Written communications for this item included emails to the Council.

The following members of the public spoke:

Sonali Padgaonkar and Deepali Pathak, representing Elder Aid, discussed the Elder Aid organization.

Connie Cunningham (virtually) discussed ICE detention center locations.

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 Item Nos. 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 June 2, 2026 City Council meeting minutes.

Recommended Action: Approve the June 2, 2026 City Council meeting minutes.

2. Subject: Ratifying Accounts Payable for the periods ending May 8, 2026, and May 22, 2026
Recommended Action: A. Adopt Resolution No. 26-073 ratifying Accounts Payable for the Period ending May 8, 2026; and
B. Adopt Resolution No. 26-074 ratifying Accounts Payable for the Period ending May 22, 2026.

3. Subject: Rescheduling the India Independence Day Flag Raising event from August 14 to August 17, 2026.

Recommended Action: Approve rescheduling the India Independence Day Flag Raising event from August 14, 2026, to August 17, 2026, and authorize the City Manager to approve subsequent event date adjustments, if necessary.

4. Subject: Adoption of support position on Assembly Bill 2346 (Wilson) E-Bike Safety 337
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and authorize the Mayor to send letters to the State legislature.

Recommended Action: Adopt support position on Assembly Bill 2346 (Wilson) E-Bike Safety and authorize the Mayor to send letters to the State legislature.

5. Subject: Appointment of Councilmember R "Ray" Wang in place of Vice Mayor Liang Chao on the ad-hoc Council subcommittee to negotiate the agreement for law enforcement services with the Santa Clara County Sheriff’s Office and as alternate representative to the multi-jurisdictional Sheriff’s Office Contract Negotiations Ad-Hoc committee comprised of one representative from the City Councils of Cupertino, Saratoga and Los Altos Hills.

Recommended Action: Consider the following:

1. Appoint Councilmember R “Ray” Wang in place of Vice Mayor Liang Chao on the ad-hoc subcommittee to negotiate the agreement for law enforcement services with the Santa Clara County Sheriff’s Office; and

2. Appoint Councilmember Wang as alternate in place of Vice Mayor Chao to the multi-jurisdictional Sheriff’s Office Contract Negotiations Ad-Hoc committee comprised of one representative from the City Councils of Cupertino, Saratoga and Los Altos Hills.

ACTION CALENDAR

7. Subject: Amend the Existing Agreement with Santa Clara County for Law Enforcement Services.

Recommended Action: 1. Authorize the City Manager to continue negotiations and execute an amendment:
a. extending the term of the current agreement for Law Enforcement Services to September 30, 2026; and
b. revising the cost methodology as proposed by the County to increase the contract in an amount not to exceed $6.4 million.

As noted under Postponements and Orders of the Day, this item was reordered to be heard prior to Item No. 6.

Written communications for this item included emails to Council, staff presentation, and desk item with staff answers to councilmember questions.

Acting Director of Administrative Services Jonathan Orozco gave a presentation and Assistant City Attorney Michael Woo was also present.

Councilmembers asked questions and made comments.
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Mayor Moore opened the public comment period and the following members of the public spoke:

Superintendent Graham Clark, along with Board of Trustee Danny Choi, Principals Janice Chen (Lynbrook), Ben Clausnitzer (Monta Vista), and Dr. Denae Nurnberg (Homestead), spoke on behalf of the Fremont Union High School District.

San Rao (virtually)
Vinay Mylar (virtually)
Councilmembers asked questions and made comments.

Mayor Moore closed the public comment period.

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

1. Authorize the City Manager to continue negotiations and execute an amendment:
a. extending the term of the current agreement for Law Enforcement Services to September 30, 2026; and
b. revising the cost methodology as proposed by the County to increase the contract in an amount not to exceed $6.4 million.
c. with an amendment to direct the City Manager to engage with the school superintendents and Fremont Union High School District (FUHSD) to explore alternatives for cost sharing the School Resource Officers (SRO’s).

The motion, as amended, passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan, and Wang. Noes: None. Abstain: None. Absent: None.

At 8:17 p.m., Mayor Moore recessed the meeting. The meeting reconvened at 8:27 p.m. with all Councilmembers present (Fruen virtually).

PUBLIC HEARINGS

6. Subject: Consideration of Recommended Operating and Capital Improvement Program Budgets for Fiscal Year (FY) 2026-27, adoption of the Operating and Capital Improvement Program Budgets for FY 2026-27, establishment of the Appropriation Limit, and related actions.

Recommended Action: 1. Adopt Resolution No. 26-075 establishing an Operating Budget of $141,318,264 for FY 2026-27, which includes the following changes to the FY 2026-27 Proposed Budget, published on May 4, 2026:
a. Approve the operating budget of $141,293,145 outlined in the FY 2026-27 Proposed 339
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Budget.
b. Approve a reduction in appropriations of $47,000 for recurring Chamber of Commerce funding agreement
c. Approve additional appropriations of $25,000 for City Work Program Special Projects PR & Strategic Comm Strategy
d. Approve additional appropriations of $34,119 for the Council approved salary adjustment of Senior Assistant City Attorney
e. Approve additional appropriations of $13,000 for RISE Housing Solutions f. Approve the allocation of $200,000 for RISE Housing funds to be budgeted in the General Fund previously funded in Special Revenue Fund as approved by Council on May 19, 2026
g. Approve a reduction in revenues of ($224,320) relating to at-risk ERAF property tax h. Approve additional revenues of $15,000 for Law Enforcement related administrative fees
i. Approve any other recommended changes as directed by City Council

2. Adopt Resolution No. 26-076 establishing a Capital Improvement Program Budget of $14,235,000 for FY 2026-27.

3. Adopt Resolution No. 26-077 establishing an Appropriation Limit of $148,461,383 for FY 2026-27.

Written communications for this item included emails to Council, updated staff presentation, and supplemental report and desk item with staff answers to councilmember questions.

Budget Manager Toni Oasay-Anderson gave a presentation and Acting Director of Administrative Services Jonathan Orozco was also present.

Councilmembers asked questions and made comments.

Chao requested staff provide a staffing level chart comparable to those included in prior adopted budget documents. Staff indicated that the chart would be included in the FY 2026-27 Budget document and provided in an informational memorandum.

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

Dena H., Meaghan W., and another speaker, representing Cupertino Pickleball Club.

Marshall, Mark, and Tom.

Mary Hanesell, Joyce Tsai, and Susan Bloomfield, representing Memorial Park 340
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Pickleball.

Tom Cunningham, Connie Chin, Doug Gor, and Wes Aoki, representing Memorial Park Pickleball Club.

Bianca Guerroro, Cathy Chiu and Danielle Wu, representing Cupertino Pickleball Club.

San Rao (virtually).

Councilmembers asked questions and made comments.

Mayor Moore closed the public hearing.

MOTION: Wang moved to approve the Pickleball Sound Attenuation Capital Improvement Project (CIP) at $50,000. (There was no second, and the motion was not considered).

SUBSTITUTE MOTION: Mohan moved and Fruen seconded to approve the Pickleball Sound Attenuation Capital Improvement Project (CIP) as presented. The substitute motion failed with the following vote: Ayes: Fruen and Mohan. Noes: Moore, Chao, and Wang. Abstain: None. Absent: None.

MOTION: Moore moved and Chao seconded to:

1. Continue the pickleball pilot program; provide a three-month update on the pilot program, particularly regarding enforcement, refer the pickleball noise issue to the Parks and Recreation Commission; and

2. Along with staff, come up with an array of options, including municipal code restrictions on the placement of additional pickleball courts near sensitive receptors; and

3. Allocate $10,000 for professional noise study to determine whether a sound wall at Memorial Park would reduce noise levels from both the bleachers and pickleball courts sufficiently to meet the municipal code noise ordinance; and

4. Remove funding for the sound wall until additional information and direction are available. The results of the noise study shall be referred to the Parks and Recreation Commission for discussion, including review of the impacts of the sound frequency.

FRIENDLY AMENDMENT: Chao made a friendly amendment to delay the pilot and send this to the Parks and Recreation Commission to decide the parameters of a pilot and then implement a pilot for three months. (Moore declined the friendly amendment, and it was not included in the motion).

FRIENDLY AMENDMENT: Moore made a friendly amendment to update the funding allocation from $10,000 to $15,000 based on the current noise study estimate. (Chao 341
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accepted the friendly amendment, and it was included in the motion).

The motion, as amended, passed with the following vote: Ayes: Moore, Chao, and Wang. Noes: Fruen and Mohan. Abstain: None. Absent: None.

MOTION: Mayor Moore moved to call the question. The motion passed with the following vote: Ayes: Moore, Chao, and Wang. Noes: Fruen and Mohan. Abstain:

None. Absent: None.

MOTION: Chao moved and Moore seconded the staff recommendation Item 1, as amended, to:

1. Adopt Resolution No. 26-075 establishing an Operating Budget of $141,318,264 for FY 2026-27, which includes the following changes to the FY 2026-27 Proposed Budget, published on May 4, 2026:
a. Approve the operating budget of $141,293,145 outlined in the FY 2026-27 Proposed Budget and
b. Approve a reduction in appropriations of $47,000 for recurring Chamber of Commerce funding agreement; and
c. Approve additional appropriations of $25,000 for City Work Program Public Engagement Strategy; and
d. Approve additional appropriations of $34,119 for the Council approved salary adjustment of Senior Assistant City Attorney; and
e. Approve additional appropriations of $13,000 for RISE Housing Solutions; and f. Approve the allocation of $200,000 for RISE Housing funds to be budgeted in the General Fund previously funded in Special Revenue Fund as approved by Council on May 19, 2026; and
g. Approve a reduction in revenues of ($224,320) relating to at-risk ERAF property tax; and
h. Approve additional revenues of $15,000 for Law Enforcement related administrative fees; and
i. Approve any other recommended changes as directed by City Council; and a. With an amendment to remove Community Grant Funding allocations for Fremont Union High Schools Foundation ($8,500) and the Rotary Club of Cupertino ($3,000), and to allocate $5,000 to American Legion Post 642 Cupertino Wreaths Across America program and $2,500 to Cupertino Host Lions Club Fish-A-Thon; and
b. With an amendment to defund $60,000 for Automated License Plate Readers (ALPR), as presented.

The motion, as amended, passed with the following vote: Ayes: Moore, Chao, and Wang. Noes: Fruen and Mohan. Abstain: None. Absent: None.

MOTION: Moore moved and Fruen seconded to extend the meeting to continue hearing 342
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Item No. 6. The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan, and Wang. Noes: None. Abstain: None. Absent: None.

Fruen and Wang added a future Study Session to return at the First Quarter FY 2026-27 Budget Update with cost estimates and implementation options for wildfire preparedness, mitigation, evacuation, and home-hardening initiatives.

MOTION: Moore moved and Wang seconded the staff recommendation Items 2 and 3, as amended, to:

2. Adopt Resolution No. 26-076 establishing a Capital Improvement Program Budget of $14,235,000 for FY 2026-27, with the amendment to reduce the funding allocation for the Pickleball Sound Attenuation Capital Improvement Project (CIP) to $15,000 to conduct only a noise study; and

3. Adopt Resolution No. 26-077 establishing an Appropriation Limit of $148,461,383 for FY 2026-27.

The motion, as amended, passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan, and Wang. Noes: None. Abstain: None. Absent: None.

ITEMS REMOVED FROM THE CONSENT CALENDAR – None

CITY MANAGER REPORT

8. Subject: City Manager Report
City Manager Tina Kapoor included the City Manager Newsletter, which includes recent highlights and upcoming events as provided in the published agenda.

ORAL COMMUNICATIONS – CONTINUED – None

COUNCILMEMBER REPORTS

9. Subject: Councilmember Reports
Councilmembers included reports on their various committees and events as provided in the published agenda.

FUTURE AGENDA ITEMS
As noted under Item No. 7:
• Vice Mayor Chao requested that staff provide a staffing level chart comparable to those 343
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included in prior adopted budget documents. Staff indicated that the chart would be included in the FY 2026-27 Budget document and provided in an informational memorandum.
• Councilmembers Fruen and Wang requested a Study Session to return with the First Quarter FY 2026-27 Budget Update to review cost estimates and implementation options for wildfire preparedness, mitigation, evacuation, and home-hardening initiatives.

10. Subject: Upcoming Draft Agenda Items Report
A tentative Council meeting agenda calendar was provided in the published agenda.

ADJOURNMENT
At 10:36 p.m., Mayor Kitty Moore adjourned the Regular City Council Meeting.

Minutes prepared by:
________________________________
Lauren Sapudar, City Clerk
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CITY OF CUPERTINO
Agenda Item
25-14430 Agenda Date: 7/7/2026
Agenda #: 7.

Subject: Receipt of the Monthly Treasurer's Investment Report for May 2026.

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

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FINANCE DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
1 CITY COUNCIL STAFF REPORT
Date: July 7, 2026
Subject
Receipt of Monthly Treasurerʹs Investment Report for May 2026 Recommended Action
Receive the Monthly Treasurerʹs Investment Report for May 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, Finance Director
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

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

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. 347 CC 07-07-2026 Searchable Packet
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TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
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ECONOMIC UPDATE
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▪
▪
▪
The conflict in Iran continues to influence global markets, with Brent crude reaching a four-year high in late April before easing in May amid speculation of a truce. Headline inflation has accelerated, diverging from more stable core measures, while consumer sentiment has weakened due to ongoing uncertainty. Meanwhile, the labor market remains stable. Taken together, the Iran-driven energy shock and steady employment conditions have further narrowed the window for near-term policy easing, prompting the Chandler team to extend its expected timeline for rate cuts beyond our six-month investment horizon.

The Federal Open Market Committee (FOMC) held the federal funds rate at 3.50% to 3.75% at the April meeting on an 8-4 vote, the most dissents at any meeting since October 1992. Governor Stephen Miran sought a quarter-point cut, while Beth Hammack, Neel Kashkari, and Lorie Logan opposed maintaining an easing bias. The session concluded Jerome Powell's tenure as Chairman of the Federal Reserve, with Kevin Warsh sworn in as Chair on May 22nd. Powell will remain on the Board of Governors. April meeting minutes revealed a shift away from prior dovish guidance, with members debating whether rate hikes may be required if inflation pressures persist.

The Treasury yield curve flattened modestly through May month-end, as the 2-year yield finished at 4.00% and the 10-year yield settled at

4.44%, leaving the spread between the 2-year and 10-year points at +44 basis points. That margin narrowed from +50 basis points at the end of April and +69 basis points at the close of 2025, as front-end yields advanced more than long-end yields. The spread between the 3- month and 10-year points stood at +76 basis points. The curve's positive slope reflects a market that expects the Federal Reserve to hold short rates in place over the coming months, even as longer yields continue to embed the uncertainty of higher inflation alongside the outlook for growth.

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

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The April Employment Situation report showed nonfarm payrolls (NFP) rose by 115,000, comfortably above the 65,000 forecast, while the unemployment rate held at 4.3%. February payrolls were revised down 23,000 to a loss of 156,000 (originally reported at -92,000 and previously revised to -133,000), and March payrolls were revised up 7,000 to a gain of 185,000, for a net revision of -16,000. The labor force participation rate dropped to 61.8%, the lowest since October 2021.

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 Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics reported 6.9 million job openings for the March period, little changed from February. The ratio of job openings to unemployed workers held at 0.94, well below the pre-pandemic norm of

1.20 and far from the 2022 cycle peak near 2.00. Quits totaled 3.2 million, and total separations reached 5.4 million. The hires bounce was concentrated in transportation, warehousing, and accommodation. Together with the cooling employment readings in both ISM surveys, the JOLTS data reinforce the picture of a labor market that has rebalanced toward looser conditions even as headline payroll growth remains positive.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
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Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Energy markets remained the dominant macro story in April, with prices pushed higher by the U.S. naval blockade of Iranian ports and the effective closure of the Strait of Hormuz. Cushing West Texas Intermediate (WTI) crude settled April 30 at $105.07 per barrel and Dated Brent finished at $114.01, after Brent traded as high as $126 intraday. Both benchmarks have appreciated nearly 60% since the conflict began February 28. The AAA national average for regular gasoline reached $4.300 per gallon on April 30, the highest level in nearly four years and $1.12 above the year-ago figure, with a 27-cent jump over the prior week. Diesel held near $5.35 per gallon for the week ending April 27 per the Energy Information Administration.

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
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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

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
The Iran conflict continued to push energy prices higher in April. The Consumer Price Index (CPI) rose 0.6% month over month, lifting the headline year-over-year rate to 3.8%, the fastest pace since May 2023 and well above March’s 3.3% reading. Core CPI increased 0.4% on the month and 2.8% year over year. The Personal Consumption Expenditures (PCE) price index also remained firm in April, rising 0.4% month over month and 3.8% year over year, while the core measure increased 0.2% on the month and 3.3% from a year earlier. Energy remains the primary driver of inflation, with the CPI energy component up 17.9% over the past twelve months and gasoline up 28.4%. Goods inflation has reaccelerated amid tariff pressures and higher oil prices, while services inflation has moderated. Overall, the breadth of price increases makes the policy outlook more complicated.

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
Perhaps tax refunds are providing a cushion for consumers facing higher gasoline and food prices amid recent inflationary pressure. April retail sales rose 0.5% month over month and 4.9% year over year, consistent with continued—though decelerating—household spending despite the energy shock. More than 40% of the increase in retail sales in April came from higher gasoline spending. The Conference Board’s Consumer Confidence Index rose to 93.1 in May, down from a revised 93.8 in April. The survey period captured the temporary ceasefire and an equity market rebound, which partially offset the energy price anxiety that had previously weighed on near-term consumer sentiment.
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 Leading Economic Index (LEI) rose 0.1% in April to 97.4, following a 0.6% decline in March. The modest increase was driven by gains in equity prices, the ISM New Orders Index, and consumer expectations, partially offset by continued weakness in building permits and the labor differential. The Chicago Fed National Activity Index (CFNAI) also increased to +0.14 in April from a revised -0.15 in March, marking its strongest reading in over a year. The pickup lifted the three-month moving average to +0.03, returning to positive territory for the first time since April 2025 and signaling economic activity slightly above its historical trend.

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 Census Bureau reported total housing starts at 1.465 million in April, down 2.8% from March butup 4.6% from a year earlier. Singlefamily starts declined to 930,000 units, while multifamily starts rose to 535,000. March starts were revised higher to 1.507 million. The S&P CoreLogic Case-Shiller 20-City Composite Home Price Index rose 0.8% over the year at March month-end, with half of metro areas posting annual declines. Seattle led to the downside at -2.5%, while Chicago topped the list at +6.1% year-over-year.

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 surveys continue to convey strengthening momentum in the manufacturing sector, as the ISM Manufacturing Index advanced to 54.0 in May, its highest reading in four years. The April ISM Services Purchasing Managers Index fell 0.4 points to 53.6 from March's 54.0, marking the twenty-second consecutive month of expansion. Fourteen of the eighteen industries tracked reported growth in April, down from fifteen in March, and consumer-facing industries flagged softening demand.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)
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Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 1.0%
-2.7% 0.0% 0.4% 1.2%

4.8% 1.6% -0.2% -1.3%
-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 1.6%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce The Bureau of Economic Analysis released its second estimate of Q1 2026 real GDP growth at 1.6% annualized, revised down from the 2.0% advance estimate. The 0.4% downward revision reflected weaker inventory investment. Growth was driven by exports, private investment, consumer spending, and government spending, while rising imports subtracted from GDP.

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 Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50 to 3.75% on April 29 by an 8-to-4 vote, the most divided meeting since 1992. Governor Stephen Miran sought a quarter-point reduction, while Presidents Beth Hammack, Neel Kashkari, and Lorie Logan supported the hold but opposed retaining an easing bias amid energy-driven inflation. Chair Jerome Powell characterized the dispersion as natural given the unusually compressed sequence of supply shocks. Powell will remain on the Board of Governors past May 15, while the April session marked Chair Jerome Powell's last meeting before Kevin Warsh succeeded him on May 22.

The Federal Reserve will continue to reinvest principal and interest proceeds from balance sheet assets into U.S. Treasury Securities.

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 (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
May-26
Feb-26
May-25
Yield (%)
At May month-end the 2-year Treasury yield finished at 4.00% and the 10-year Treasury yield settled at 4.44%, leaving the spread between the 2-year and 10-year points on the curve at +44 basis points. That margin narrowed from +69 basis points at the close of 2025, a year-todate flattening driven by the 2-year yield advancing roughly 53 basis points while the 10-year yield rose about 28 basis points as the Iran conflict tempered dovish monetary policy expectations. The spread between the 3-month and 10-year points stood at +76 basis points. The simultaneous presence of a positively sloped curve and elevated absolute yields reflected a market calibrating both persistent inflation risk and the prospect of policy remaining restrictive.

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. 16 363
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of May 31, 2026 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max % (MV) 100.0 11.3 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 25.0 11.3 Compliant Max Maturity (Years) 5.0 4.7 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 8.1 Compliant
Max % Issuer (MV) 5.0 1.6 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 (NONNEGOTIABLE 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 May 31, 2026 Rules Name Limit Actual Compliance
Status Notes
Max% (MV) 30.0 27.5 Compliant
Max% Issuer (MV) 5.0 1.7 Compliant
Max Maturity (Years)54 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 11.3 Compliant Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years)51 Compliant

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

MONEY MARKET MUTUAL FUNDS
Max% (MV) 20.0 0.5 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 0.8 Compliant
Max% Issuer (MV) 5.0 0.8 Compliant
Max Maturity (Years)53 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 May 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 1.7 Compliant
Max % Issuer (MV) 10.0 1.7 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 46.9 Compliant
Max Maturity (Years) 5 4 Compliant
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PORTFOLIO SUMMARY
City of Cupertino | Account #10659 | As of May 31, 2026 Portfolio Characteristics Account Summary Top Issuers
Average Modified Duration 2.53
Average Coupon 3.81%
Average Purchase YTM 4.09%
Average Market YTM 4.19%
Average Credit Quality* AA+
Average Final Maturity 2.94
Average Life 2.79
End Values as of
02/28/2026
End Values as of
05/31/2026
Market Value 207,990,852.81 206,688,538.45
Accrued Interest 1,474,068.58 1,749,412.65
Total Market Value 209,464,921.39 208,437,951.10
Income Earned 1,653,776.36 2,437,672.25
Cont/WD 0.00 0.00
Par 207,146,288.30 208,928,512.71
Book Value 205,526,481.72 207,337,555.21
Cost Value 204,980,764.26 206,664,263.84
United States 46.94%
Federal Home Loan Mortgage Corp 11.34%
Farm Credit System 2.54%
International Bank for Recon and Dev 1.66%
Morgan Stanley 1.65%
Chase Issuance Trust 1.60%
Guardian Life Global Funding 1.29%
The Home Depot, Inc. 1.26%
Sector Allocation Maturity Distribution Credit Quality* Performance Review
Total Rate of Return** 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (02/01/19)
City of Cupertino 0.11% (0.47%) 0.59% 3.83% 4.88% 4.54% 1.83% -- 2.34% Benchmark Return 0.03% (0.57%) 0.38% 3.41% 4.39% 4.07% 1.48% -- 2.08% *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 20 367
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ISSUERS
City of Cupertino | Account #10659 | As of May 31, 2026 Issuer Investment Type% Portfolio
United States US Treasury 46.94%
Federal Home Loan Mortgage Corp Agency CMBS 11.34%
Farm Credit System Agency 2.54%
International Bank for Recon and Dev Supras 1.66%
Morgan Stanley Corporate 1.65%
Chase Issuance Trust ABS 1.60%
Guardian Life Global Funding Corporate 1.29%
The Home Depot, Inc. Corporate 1.26%
Toyota Motor Corporation Corporate 1.23%
Meta Platforms, Inc. Corporate 1.16%
New York Life Insurance Company Corporate 1.15%
Deere& Company Corporate 0.99%
Northwestern Mutual Global Funding Corporate 0.97%
UnitedHealth Group Incorporated Corporate 0.92%
Federal Home Loan Banks Agency 0.91%
Simon Property Group, Inc. Corporate 0.90%
PACCAR Inc Corporate 0.90%
Chubb Limited Corporate 0.85%
State of California Muni Bonds 0.85%
Caterpillar Inc. Corporate 0.84%
American Honda Finance Corporation Corporate 0.84%
Prudential Financial, Inc. Corporate 0.84%
The Goldman Sachs Group, Inc. Corporate 0.82%
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 0.73%
Citigroup Inc ABS 0.73%
Prologis, Inc. Corporate 0.73%
Bank of America Corporation Corporate 0.72%
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ISSUERS
City of Cupertino | Account #10659 | As of May 31, 2026 Issuer Investment Type % Portfolio
The Progressive Corporation Corporate 0.72%
JPMorgan Chase & Co. Corporate 0.72%
Alphabet Inc. Corporate 0.72%
Realty Income Corporation Corporate 0.70%
American Express Credit Master Trust ABS 0.69%
Marsh & McLennan Companies, Inc. Corporate 0.68%
WF Card Issuance Trust ABS 0.66%
Salesforce, Inc. Corporate 0.66%
Visa Inc. Corporate 0.65%
Met Tower Global Funding Corporate 0.63%
Toyota Auto Receivables Owner Trust ABS 0.60%
Cargill, Incorporated Corporate 0.52%
BMW Vehicle Lease Trust ABS 0.51%
Nat Rural Util Coop Fin Corp Corporate 0.49%
Massachusetts Mutual Life Insurance Corporate 0.48%
Pacific Life Global Funding II Corporate 0.48%
Wells Fargo & Company Money Mkt Fd 0.47%
The Charles Schwab Corporation Corporate 0.46%
Hyundai Auto Lease Sec Trust ABS 0.41%
Honda Auto Receivables Owner Trust ABS 0.35%
GM Financial Securitized Term ABS 0.35%
Mercedes-Benz Auto Receivables Trust ABS 0.23%
BMW Vehicle Owner Trust ABS 0.23%
John Deere Owner Trust ABS 0.18%
WC MMF Sweep Cash 0.03%
Cash Cash -0.30%
TOTAL 100.00%
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HISTORICAL AVERAGE PURCHASE YIELD
City of Cupertino | Account #10659 | As of May 31, 2026 Purchase Yield as of 05/31/26 = 4.09%
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PORTFOLIO HOLDINGS
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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
44934FAD7 HALST 2024-B A3 5.41 05/17/2027 208,943.15 05/14/2024

5.41%
208,937.34
208,941.28
100.17

3.84%
209,307.96
502.39

0.10%
366.68
NA/AAA
AAA

0.96 0.11
47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 29,462.25 10/12/2022

5.15%
29,459.96
29,461.75
100.05

3.80%
29,477.28

66.65 0.01%

15.53 Aaa/NA
AAA

1.04 0.04
89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 485,833.22 11/21/2023

5.65%
483,859.53
484,990.16
100.40

4.04%
487,764.41
1,114.18

0.24%
2,774.25
NA/AAA
AAA

1.88 0.34
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 367,107.02 --5.64%
368,015.75
367,416.09
100.75

4.15%
369,876.48
578.19

0.18%
2,460.39
Aaa/NA
AAA

2.06 0.45
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 1,050,000.00 10/08/20254.32%
1,049,997.06
1,049,997.69

99.80 4.19%
1,047,899.27
694.75

0.51%
(2,098.42)
NA/AAA
AAA

2.32 1.05
58769FAC9 MBART 2023-2 A3 5.95
11/15/2028 475,909.87 11/29/20233.88%
485,985.77
479,632.12
100.88

4.13%
480,085.02
1,258.52

0.23%
452.90
NA/AAA
AAA

2.46 0.46
47800RAD5 JDOT 2024 A3 4.96 11/15/2028 349,626.44 03/25/2024

5.13%
349,462.56
349,539.57
100.54

3.96%
351,523.51
770.73

0.17%
1,983.95
Aaa/NA
AAA

2.46 0.52
05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 850,000.00 01/24/2024

4.58%
858,798.83
851,442.06
100.48

3.94%
854,108.90
1,881.33

0.41%
2,666.84
Aaa/NA
AAA

0.46 0.44
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 360,217.87 05/14/20245.27%
360,174.10
360,193.83
100.71

4.05%
362,778.66
685.51

0.18%
2,584.83
NA/AAA
AAA

2.47 0.56
448970AD5 HALST 2026-A A3 3.97
12/15/2028 635,000.00 01/12/20263.98%
634,906.91
634,918.43

99.57 4.28%
632,262.26
1,120.42

0.31%
(2,656.16)
NA/AAA
AAA

2.54 1.55
36268GAD7 GMCAR 2024-1 A3 4.85
12/18/2028 717,162.42 --4.97%
716,025.18
716,537.53
100.36

4.16%
719,735.60
1,449.27

0.35%
3,198.07
Aaa/NA
AAA

2.55 0.48
161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024

4.61%
1,689,742.61
1,689,863.63
100.39

4.00%
1,696,592.52
3,455.11

0.82%
6,728.89
NA/AAA
AAA

2.63 0.60
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 469,022.46 06/04/20245.18%
468,951.21
468,981.02
100.64

4.07%
472,002.63
404.92

0.23%
3,021.61
Aaa/AAA
NA

2.74 0.55
58770XAD5 MBALT 2025-B A3 3.88
04/16/2029 1,045,000.00 10/16/20254.57%
1,044,828.52
1,044,858.45

99.52 4.23%
1,039,972.71
1,802.04

0.50%
(4,885.73)
NA/AAA
AAA

2.88 1.49
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 785,000.00 06/06/2024

4.93%
784,955.96
784,973.65
100.86

4.04%
791,754.85
1,720.02

0.38%
6,781.19
Aaa/AAA
NA

2.96 0.91
58770YAD3 MBALT 2026-A A3 3.93
01/15/2030 570,000.00 01/13/20263.97%
569,886.97
569,897.15

99.43 4.27%
566,774.43
995.60

0.27%
(3,122.72)
Aaa/NA
AAA

3.63 1.86
25 372
CC 07-07-2026 Searchable Packet
376 of 511

HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 1,420,000.00 05/06/2025

4.28%
1,419,974.30
1,419,979.79
100.16

4.23%
1,422,277.68
2,701.16

0.69%
2,297.89
NA/AAA
AAA

3.87 1.76
92970QAJ4 WFCIT 2025-1 A 4.34 05/15/2030 1,365,000.00 06/03/2025

4.33%
1,364,977.34
1,364,981.82
100.19

4.28%
1,367,540.81
2,632.93

0.66%
2,558.99
NA/AAA
AAA

3.96 1.84
17305EHA6 CCCIT 2025-A1 A1 4.3 06/21/2030 1,500,000.00 10/09/2025

3.90%
1,515,000.00
1,511,436.55
100.04

4.28%
1,500,666.30
28,666.67

0.73%
(10,770.25)
Aaa/AAA
NA

4.06 1.91
89240QAD7 TAOT 2026-B A3 4.13 12/16/2030 760,000.00 04/14/2026

4.27%
759,839.72
759,843.59

99.55 4.37%
756,603.26
1,395.02

0.37%
(3,240.33)
Aaa/AAA
NA

4.54 2.21
161571JA3 CHAIT 2026-1 A 4.4 05/15/2029 1,595,000.00 05/21/2026

4.45%
1,594,622.62
1,594,624.01
100.35

4.31%
1,600,582.50
584.83

0.77%
5,958.49
NA/NA
AAA

2.96 2.72
16,758,402.23 100.19 16,759,587.03 8.11% 2.95
Total ABS 16,728,284.70 4.51% 16,742,510.15 4.17% 54,480.26 17,076.87 1.33 AGENCY
3130B0TY5 FEDERAL HOME LOAN BANKS 4.75
04/09/2027 1,875,000.00 04/10/20244.85%
1,870,050.00
1,873,587.01
100.81

3.77%
1,890,196.88
12,864.58

0.91%
16,609.87
Aa1/AA+
AA+

0.86 0.83
3133ERDS7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 05/06/2027 2,400,000.00 06/20/20244.55% 2,412,552.00
2,404,056.37
100.77

3.90%
2,418,505.20
7,916.67

1.17%
14,448.83
Aa1/AA+
AA+

0.93 0.90
3133EPC60 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.625 11/15/2027 2,800,000.00 11/09/20234.73% 2,789,612.00
2,796,217.37
100.79

4.06%
2,822,232.00
5,755.56

1.37%
26,014.63
Aa1/AA+
AA+

1.46 1.39
7,072,214.00 100.79 7,130,934.08 3.45% 1.12
Total Agency 7,075,000.00 4.70% 7,073,860.75 3.93% 26,536.81 57,073.33 1.08

AGENCY CMBS
3137BSP72 FHMS K-058 A2 2.653 08/25/2026 600,204.32 11/12/2021

1.36%
634,786.40
601,432.20

99.56 4.07%
597,547.21
1,326.95

0.29%
(3,884.99)
Aa1/AA+
AAA

0.24 0.19
3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 1,931,607.36 07/01/2024

4.86%
1,847,929.53
1,884,103.30

98.75 4.24%
1,907,431.36
6,070.08

0.92%
23,328.06
Aa1/AAA
AA+

2.57 2.29
3137FL6P4 FHMS K-089 A2 3.563 01/25/2029 1,288,000.00 07/03/2024

4.70%
1,228,178.44
1,253,466.48

98.07 4.29%
1,263,104.25
3,824.29

0.61%
9,637.77
Aa1/AA+
AA+

2.65 2.44
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 2,000,000.00 07/03/2024

4.74%
1,801,718.75
1,885,537.09

95.00 4.30%
1,900,052.00
3,766.67

0.92%
14,514.91
Aa1/AA+
AAA

2.65 2.44
26 373
CC 07-07-2026 Searchable Packet
377 of 511

HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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
2,501,021.81

98.40 4.29%
2,509,115.85
7,841.25

1.21%
8,094.04
Aaa/AA+
AA+

2.65 2.40
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 2,500,000.00 03/20/2025

4.25%
2,431,738.28
2,452,307.05

97.86 4.29%
2,446,382.50
7,302.08

1.18%
(5,924.55)
Aa1/AAA
AA+

2.82 2.53
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 1,960,062.68 09/19/2024

3.82%
1,891,001.10
1,916,282.57

96.46 4.30%
1,890,739.18
4,870.76

0.91%
(25,543.39)
Aa1/AA+
AAA

2.98 2.61
3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 2,200,000.00 07/17/2024

4.47%
2,039,382.82
2,101,047.54

95.68 4.32%
2,105,067.80
5,105.83

1.02%
4,020.26
Aa1/AA+
AAA

3.07 2.77
3137FPHK4 FHMS K-098 A2 2.425 08/25/2029 1,600,000.00 09/03/2024

4.00%
1,488,375.00
1,527,849.09

94.41 4.32%
1,510,636.00
3,233.33

0.73%
(17,213.09)
Aa1/AA+
AAA

3.24 2.96
3137FPJG1 FHMS K-099 A2 2.595 09/25/2029 1,500,000.00 06/05/2025

4.21%
1,407,011.72
1,428,452.02

94.78 4.32%
1,421,652.00
3,243.75

0.69%
(6,800.02)
Aa1/AA+
AAA

3.32 3.02
3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 2,000,000.00 06/06/2025

4.37%
1,810,078.13
1,850,571.98

92.41 4.34%
1,848,134.00
3,448.33

0.89%
(2,437.98)
Aa1/AA+
AAA

3.65 3.41
3137FTZQ3 FHMS K-110 A2 1.477 04/25/2030 1,500,000.00 09/03/2025

3.96%
1,348,652.34
1,372,817.09

90.15 4.35%
1,352,298.00
1,846.25

0.65%
(20,519.09)
Aa1/AA+
AAA

3.90 3.56
3137FWG79 FHMS K-115 A2 1.383 06/25/2030 2,000,000.00 12/10/2025

3.99%
1,787,343.75
1,809,275.15

89.05 4.37%
1,781,070.00
2,305.00

0.86%
(28,205.15)
Aa1/AA+
AAA

4.07 3.83
3137FXZ35 FHMS K-127 A2 2.108 01/25/2031 1,000,000.00 02/03/2026

4.11%
910,937.50
916,659.39

90.49 4.39%
904,888.20
1,756.67

0.44%
(11,771.19)
Aa1/AA+
AAA

4.65 4.30
23,092,963.84 95.27 23,438,118.36 11.34% 3.08
Total Agency CMBS 24,629,874.36 4.25% 23,500,822.78 4.31% 55,941.24 (62,704.42) 2.81 CASH
992995944 WC MMF SWEEP 53,171.21 --

2.85%
53,171.21
53,171.21

1.00 1.80%
53,171.21

0.00 0.03%

0.00 NA/NA
NA

0.00 0.00
CCYUSD Payable (675,000.00) -- (675,000.00)
(675,000.00)

1.00 (675,000.00)

0.00 (0.33%)

0.00 Aaa/AAA
AAA

0.00 0.00
CCYUSD Receivable 57,237.47 -- 57,237.47
57,237.47

1.00 57,237.47

0.00 0.03%

0.00 Aaa/AAA
AAA

0.00 0.00
(564,591.32) 1.00 (564,591.32) (0.27%) 0.00
Total Cash (564,591.32) 2.85% (564,591.32) 1.80% 0.00 0.00 0.00 27 374
CC 07-07-2026 Searchable Packet
378 of 511

HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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

CORPORATE
808513BY0 CHARLES SCHWAB CORP 2.45
03/03/2027 960,000.00 03/01/20222.46%
959,729.90
959,955.04

98.78 4.10%
948,276.48
5,749.33

0.46%
(11,678.56)
A2/AA0.76

0.73 084664CZ2 BERKSHIRE HATHAWAY FINANCE
CORP 2.3 03/15/2027 1,615,000.00 03/07/20222.30%
1,614,693.15
1,614,951.77

98.62 4.09%
1,592,711.39
7,841.72

0.77%
(22,240.39)
Aa2/AA
A+

0.79 0.77
79466LAQ7 SALESFORCE INC 4.5 03/15/2028 1,355,000.00 03/12/2026

4.37%
1,358,284.45
1,357,911.22
100.09

4.44%
1,356,209.80
13,211.25

0.66%
(1,701.42)
A2/A+
NA

1.79 1.61
61690U8E3 MORGAN STANLEY BANK NA

4.968 07/14/2028 1,950,000.00 07/17/20244.97%
1,950,000.00
1,950,000.00
100.63

4.47%
1,962,253.80
36,866.70

0.95%
12,253.80
Aa3/A+
AA

2.12 1.06
69371RU20 PACCAR FINANCIAL CORP 4.0
11/07/2028 1,865,000.00 11/05/20254.02%
1,863,955.60
1,864,151.90

99.71 4.12%
1,859,647.13
4,973.33

0.90%
(4,504.77)
A1/A+
NA

2.44 2.29
58989V2M5 MET TOWER GLOBAL FUNDING

4.0 01/14/2029 1,310,000.00 01/07/20264.05%
1,308,310.10
1,308,522.88

98.74 4.51%
1,293,509.72
19,941.11

0.63%
(15,013.16)
Aa3/AAAA2.62

2.42 74340XBL4 PROLOGIS LP 4.375 02/01/2029 1,500,000.00 07/18/2024

4.68%
1,481,235.00
1,488,953.78

99.99 4.38%
1,499,913.00
21,875.00

0.73%
10,959.22
A2/A
NA

2.67 2.46
743315AV5 PROGRESSIVE CORP 4.0
03/01/2029 1,500,000.00 07/16/20244.72%
1,455,495.00
1,473,529.02

99.36 4.25%
1,490,340.00
15,000.00

0.72%
16,810.98
A2/A
A

2.75 2.55
38151LAJ9 GOLDMAN SACHS BANK USA

4.656 06/03/2029 675,000.00 05/27/20264.57%
675,000.00
675,000.00
100.13

4.52%
675,859.28

0.00 0.33%
859.28
A1/A+
AA3.011.89
64952WFG3 NEW YORK LIFE GLOBAL FUNDING

5.0 06/06/2029 1,000,000.00 07/01/20245.12%
994,880.00
996,868.27
101.50

4.46%
1,015,005.00
24,305.56

0.49%
18,136.73
Aa1/AA+
AAA

3.02 2.71
437076BY7 HOME DEPOT INC 2.95
06/15/2029 1,663,000.00 09/17/20243.93%
1,593,203.89
1,618,243.40

96.20 4.30%
1,599,741.14
22,621.42

0.77%
(18,502.25)
A2/A
A

3.04 2.83
437076DC3 HOME DEPOT INC 4.75
06/25/2029 1,000,000.00 07/01/20244.93%
992,260.00
995,234.30
101.27

4.30%
1,012,747.00
20,583.33

0.49%
17,512.70
A2/A
A

3.07 2.70
756109CB8 REALTY INCOME CORP 4.0
07/15/2029 1,463,000.00 08/08/20244.69%
1,419,212.41
1,435,283.26

98.45 4.54%
1,440,373.24
22,107.56

0.70%
5,089.98
A3/ANA3.12

2.86 713448FX1 PEPSICO INC 4.5 07/17/2029 1,500,000.00 07/15/2024

4.53%
1,497,675.00
1,498,545.92
100.65

4.28%
1,509,678.00
25,125.00

0.73%
11,132.08
A1/A+
NA

3.13 2.77
46647PAV8 JPMORGAN CHASE & CO 4.203
07/23/2029 1,500,000.00 09/17/20244.27%
1,496,610.00
1,498,109.42

99.29 4.75%
1,489,300.50
22,416.00

0.72%
(8,808.92)
A1/A
AA3.152.00
06051GHM4 BANK OF AMERICA CORP 4.271
07/23/2029 1,500,000.00 09/17/20244.29%
1,498,710.00
1,499,280.58

99.41 4.77%
1,491,088.50
22,778.67

0.72%
(8,192.08)
A1/AAA3.15

2.00 28
375
CC 07-07-2026 Searchable Packet
379 of 511

HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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 08/12/20244.33%
910,584.09
911,091.99
100.11

4.26%
912,985.87
11,546.93

0.44%
1,893.88
Aa3/AANA3.21

2.93 171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 1,750,000.00 --4.44%
1,765,746.34
1,760,243.07
100.75

4.40%
1,763,097.88
23,960.42

0.85%
2,854.80
A2/A
A

3.21 2.84
91324PDS8 UNITEDHEALTH GROUP INC 2.875
08/15/2029 2,000,000.00 09/17/20243.94%
1,906,080.00
1,938,627.05

95.52 4.39%
1,910,402.00
16,930.56

0.92%
(28,225.05)
A2/A+
A

3.21 2.99
02665WFQ9 AMERICAN HONDA FINANCE
CORP 4.4 09/05/2029 1,750,000.00 10/02/20244.29%
1,758,102.50
1,755,371.62

99.08 4.71%
1,733,865.00
18,394.44

0.84%
(21,506.62)
A3/BBB+
A3.272.97
40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING

4.179 09/26/2029 1,205,000.00 09/23/20244.18%
1,205,000.00
1,205,000.00

98.99 4.51%
1,192,805.40
9,092.23

0.58%
(12,194.60)
Aa1/AA+
NA

3.32 3.04
61748UAK8 MORGAN STANLEY 4.133
10/18/2029 1,470,000.00 10/17/20254.25%
1,470,184.60
1,470,147.07

98.85 4.62%
1,453,143.08
7,256.86

0.70%
(17,003.99)
A1/AA+3.38

2.23 38141GD27 GOLDMAN SACHS GROUP INC

4.153 10/21/2029 1,025,000.00 10/14/20254.37%
1,025,000.00
1,025,000.00

98.80 4.64%
1,012,697.59
4,729.81

0.49%
(12,302.41)
A2/BBB+
A

3.39 2.24
14913UAU4 CATERPILLAR FINANCIAL SERVICES
CORP 4.7 11/15/2029 1,200,000.00 11/14/20244.74%
1,198,092.00
1,198,680.28
101.10

4.35%
1,213,158.00
2,506.67

0.59%
14,477.72
A1/A
A+

3.46 3.16
64952WFK4 NEW YORK LIFE GLOBAL FUNDING

4.6 12/05/2029 1,365,000.00 12/02/20244.61%
1,364,221.95
1,364,453.32
100.27

4.52%
1,368,677.31
30,697.33

0.66%
4,223.99
Aa1/AA+
AAA

3.51 3.14
89236TNA9 TOYOTA MOTOR CREDIT CORP

4.95 01/09/2030 1,445,000.00 01/06/20255.00%
1,441,907.70
1,442,767.99
101.54

4.48%
1,467,264.56
28,213.63

0.71%
24,496.57
A1/A+
A+

3.61 3.21
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
1,002,106.78
101.39

4.54%
1,013,863.00
15,675.00

0.49%
11,756.22
A2/NA
A

3.69 3.22
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 1,400,000.00 03/11/20254.69% 1,397,340.00
1,397,983.13
100.17

4.60%
1,402,389.80
13,743.33

0.68%
4,406.68
A3/AA3.79

3.34 57629TBX4 MASSMUTUAL GLOBAL FUNDING
II 4.55 05/07/2030 1,000,000.00 05/01/20254.58%
998,670.00
998,954.06

99.57 4.67%
995,749.00
3,033.33

0.48%
(3,205.06)
Aa3/AA+
AA+

3.93 3.55
66815L2W8 NORTHWESTERNMUTUAL
GLOBAL FUNDING 4.6 06/03/2030 1,000,000.00 06/12/20254.51% 1,004,040.00
1,003,254.69
100.09

4.57%
1,000,917.00
22,744.44

0.48%
(2,337.69)
Aa1/AA+
AAA

4.01 3.54
828807DK0 SIMON PROPERTY GROUP LP 2.65
07/15/2030 2,000,000.00 08/19/20254.32%
1,853,380.00
1,876,724.53

93.00 4.53%
1,860,044.00
20,022.22

0.90%
(16,680.53)
A3/A
NA

4.12 3.80
40139LBN2 GUARDIAN LIFE GLOBAL FUNDING

4.327 10/06/2030 1,500,000.00 09/30/20254.33%
1,500,000.00
1,500,000.00

98.73 4.65%
1,480,887.00
9,916.04

0.72%
(19,113.00)
Aa1/AA+
NA

4.35 3.89
29 376
CC 07-07-2026 Searchable Packet
380 of 511

HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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 11/04/20254.22%
1,006,920.00
1,006,122.57

99.61 4.47%
996,075.07
5,590.28

0.48%
(10,047.50)
A1/A
A+

4.38 3.92
141781CF9 CARGILL INC 4.125 10/23/2030 1,100,000.00 10/20/2025

4.14%
1,099,171.70
1,099,271.95

98.29 4.56%
1,081,218.60
4,789.58

0.52%
(18,053.35)
A2/A
NA

4.40 3.95
30303MAB8 META PLATFORMS INC 4.2
11/15/2030 1,500,000.00 11/13/20254.16%
1,502,895.00
1,502,578.54

98.72 4.52%
1,480,743.95
2,800.00

0.72%
(21,834.59)
Aa3/AANA4.46

4.01 74153WCZ0 PRICOA GLOBAL FUNDING I 4.35
11/25/2030 1,750,000.00 12/08/20254.36%
1,749,440.00
1,749,493.77

98.68 4.68%
1,726,903.50
1,268.75

0.84%
(22,590.27)
Aa3/NA
AA4.494.02
89236TPH2 TOYOTA MOTOR CREDIT CORP 4.2
01/10/2031 1,080,000.00 01/07/20264.21%
1,079,665.20
1,079,690.90

98.61 4.54%
1,064,969.64
17,514.00

0.52%
(14,721.26)
A1/A+
A+

4.61 4.07
66815L2Z1 NORTHWESTERNMUTUAL
GLOBAL FUNDING 4.3 01/13/2031 1,020,000.00 01/06/20264.30% 1,019,908.20
1,019,915.19

98.77 4.60%
1,007,499.90
16,813.00

0.49%
(12,415.29)
Aa1/AA+
AAA

4.62 4.07
6944PL3M9 PACIFIC LIFE GLOBAL FUNDING II

4.375 02/03/2031 1,000,000.00 01/29/20264.34%
1,001,380.00
1,001,290.82

99.05 4.60%
990,478.00
14,340.28

0.48%
(10,812.82)
Aa3/AAAA4.68

4.12 92826CAZ5 VISA INC 4.1 02/12/2031 1,345,000.00 02/03/2026

4.13%
1,343,197.70
1,343,305.29

99.41 4.24%
1,337,060.40
16,696.68

0.65%
(6,244.89)
Aa3/AANA4.70

4.18 02079KBK2 ALPHABET INC 4.1 02/15/2031 1,500,000.00 02/12/2026

4.10%
1,500,087.78
1,500,082.39

98.66 4.42%
1,479,838.04
18,450.00

0.72%
(20,244.35)
Aa2/AA+
NA

4.71 4.18
24422EYL7 JOHN DEERE CAPITAL CORP 4.2
03/10/2031 1,060,000.00 03/05/20264.20%
1,059,766.80
1,059,777.40

98.70 4.50%
1,046,261.62
10,017.00

0.51%
(13,515.78)
A1/A
A+

4.77 4.24
14913V2D9 CATERPILLAR FINANCIAL SERVICES
CORP 4.5 05/15/2031 525,000.00 05/11/20264.53%
524,280.75
524,287.45

99.83 4.54%
524,081.25
1,050.00

0.25%
(206.20)
A1/A
A+

4.96 4.39
Total Corporate 57,258,000.00 4.32%
56,847,190.42
56,970,762.59

99.15 4.47%
56,753,730.42
633,188.79

27.46%
(217,032.17)

3.40 2.94

MONEY MARKET
FUND
VP4520004 WF ADV 100% TREAS MM FD-SVC
CL #008 961,944.97 --0.01%
961,944.97
961,944.97

1.00 3.19%
961,944.97

0.00 0.47%

0.00 Aaa/AAAm
NA

0.00 0.00
Total Money Market
Fund 961,944.97 0.01%
961,944.97
961,944.97

1.00 3.19%
961,944.97

0.00 0.47%

0.00 0.00

0.00 MUNICIPAL BONDS
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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
13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 1,740,000.00 10/30/2024

4.38%
1,749,169.80
1,746,132.64
100.90

4.19%
1,755,581.70
26,100.00

0.85%
9,449.07
Aa2/AAAA3.17

2.88 Total Municipal
Bonds 1,740,000.00 4.38%
1,749,169.80
1,746,132.64
100.90

4.19%
1,755,581.70
26,100.00

0.85%
9,449.07

3.17 2.88

SUPRANATIONAL
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
1,730,131.13

99.28 4.10%
1,737,459.50
8,470.00

0.84%
7,328.37
Aaa/AAA
NA

3.38 3.12
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
1,695,606.44
100.02

4.12%
1,700,261.80
13,830.21

0.82%
4,655.36
Aaa/AAA
NA

3.80 3.46
Total Supranational 3,450,000.00 4.23%
3,415,730.00
3,425,737.57

99.65 4.11%
3,437,721.30
22,300.21

1.66%
11,983.73

3.59 3.29

US TREASURY
912797UB1 UNITED STATES TREASURY
06/23/2026 2,000,000.00 02/25/20263.68%
1,976,657.85
1,995,610.88

99.78 3.69%
1,995,558.00

0.00 0.97%
(52.88)
P-1/A-1+
F1+

0.06 0.06
91282CCZ2 UNITED STATES TREASURY 0.875
09/30/2026 1,400,000.00 10/18/20211.19%
1,379,054.68
1,398,597.46

99.07 3.73%
1,386,929.68
2,075.14

0.67%
(11,667.78)
Aa1/AA+
AA+

0.33 0.33
91282CDG3 UNITED STATES TREASURY 1.125
10/31/2026 1,400,000.00 11/15/20211.25%
1,391,468.75
1,399,283.17

98.91 3.81%
1,384,673.82
1,369.57

0.67%
(14,609.35)
Aa1/AA+
AA+

0.42 0.41
91282CJP7 UNITED STATES TREASURY 4.375
12/15/2026 2,500,000.00 12/28/20234.01%
2,525,097.66
2,504,569.54
100.32

3.76%
2,508,032.23
50,480.77

1.21%
3,462.69
Aa1/AA+
AA+

0.54 0.52
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 2,300,000.00 04/17/20244.77%
2,283,109.38
2,295,081.30
100.54

3.86%
2,312,398.43
13,290.98

1.12%
17,317.12
Aa1/AA+
AA+

0.87 0.84
91282CKR1 UNITED STATES TREASURY 4.5
05/15/2027 3,200,000.00 05/08/20244.65%
3,186,500.00
3,195,709.59
100.54

3.92%
3,217,224.99
6,652.17

1.56%
21,515.40
Aa1/AA+
AA+

0.96 0.92
91282CEW7 UNITED STATES TREASURY 3.25
06/30/2027 3,250,000.00 --3.18%
3,260,312.50
3,252,168.42

99.30 3.91%
3,227,402.36
44,350.83

1.56%
(24,766.06)
Aa1/AA+
AA+

1.08 1.04
91282CFB2 UNITED STATES TREASURY 2.75
07/31/2027 400,000.00 08/22/20223.12%
393,218.75
398,401.53

98.66 3.93%
394,640.80
3,676.80

0.19%
(3,760.73)
Aa1/AA+
AA+

1.17 1.12
31 378
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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
91282CFH9 UNITED STATES TREASURY 3.125
08/31/2027 4,500,000.00 --3.28%
4,468,902.34
4,492,192.77

99.01 3.94%
4,455,527.36
35,538.38

2.16%
(36,665.42)
Aa1/AA+
AA+

1.25 1.20
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 3,450,000.00 --4.31%
3,421,152.34
3,442,196.97
100.22

3.95%
3,457,681.63
24,107.58

1.67%
15,484.66
Aa1/AA+
AA+

1.33 1.28
91282CFZ9 UNITED STATES TREASURY 3.875
11/30/2027 850,000.00 12/05/20223.81%
852,656.25
850,798.33

99.84 3.99%
848,638.67

89.99 0.41%
(2,159.66)
Aa1/AA+
AA+

1.50 1.44
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 2,750,000.00 --3.67%
2,775,107.42
2,758,071.27

99.82 3.99%
2,745,058.58
44,744.48

1.33%
(13,012.69)
Aa1/AA+
AA+

1.59 1.49
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028 3,000,000.00 02/07/20233.81%
2,957,929.69
2,985,907.14

99.20 4.00%
2,976,093.75
35,096.69

1.44%
(9,813.39)
Aa1/AA+
AA+

1.67 1.58
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028 3,700,000.00 --4.01%
3,699,113.28
3,699,736.68
100.01

3.99%
3,700,289.04
37,402.17

1.79%
552.36
Aa1/AA+
AA+

1.75 1.66
91282CNY3 UNITED STATES TREASURY 3.375
09/15/2028 5,000,000.00 10/28/20253.50%
4,982,812.50
4,986,325.15

98.58 4.03%
4,928,906.25
35,767.66

2.38%
(57,418.90)
Aa1/AA+
AA+

2.29 2.16
91282CQA2 UNITED STATES TREASURY 3.5
02/15/2029 4,000,000.00 04/27/20263.81%
3,966,718.75
3,967,823.79

98.60 4.05%
3,944,064.00
40,994.48

1.91%
(23,759.79)
Aa1/AA+
AA+

2.71 2.53
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 2,300,000.00 04/17/20244.62%
2,249,867.19
2,271,328.91
100.18

4.05%
2,304,222.66
16,071.72

1.11%
32,893.75
Aa1/AA+
AA+

2.83 2.63
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 2,000,000.00 07/01/20244.41%
1,985,546.88
1,991,085.66
100.53

4.06%
2,010,625.00
35,690.61

0.97%
19,539.34
Aa1/AA+
AA+

3.08 2.81
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 3,500,000.00 09/11/20243.45%
3,527,480.47
3,517,991.90

98.63 4.08%
3,452,148.42
32,063.52

1.67%
(65,843.48)
Aa1/AA+
AA+

3.25 3.00
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 5,000,000.00 --3.83%
4,925,039.06
4,949,696.11

98.21 4.08%
4,910,351.55
29,644.81

2.38%
(39,344.56)
Aa1/AA+
AA+

3.33 3.09
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 3,000,000.00 10/31/20244.17%
2,993,789.06
2,995,752.74
100.12

4.09%
3,003,632.82
10,760.87

1.45%
7,880.08
Aa1/AA+
AA+

3.42 3.14
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 4,400,000.00 --4.53%
4,369,171.88
4,377,713.05
100.94

4.09%
4,441,421.86
80,828.73

2.15%
63,708.82
Aa1/AA+
AA+

3.59 3.23
91282CMG3 UNITED STATES TREASURY 4.25
01/31/2030 4,000,000.00 02/07/20254.34%
3,983,906.25
3,988,124.66
100.52

4.10%
4,020,624.00
56,823.20

1.95%
32,499.34
Aa1/AA+
AA+

3.67 3.32
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 4,500,000.00 --4.01%
4,496,958.99
4,497,664.41

99.66 4.10%
4,484,882.79
45,489.13

2.17%
(12,781.62)
Aa1/AA+
AA+

3.75 3.41
91282CNK3 UNITED STATES TREASURY 3.875
06/30/2030 5,000,000.00 --3.78%
5,020,507.81
5,018,380.82

99.11 4.11%
4,955,664.05
81,353.59

2.40%
(62,716.77)
Aa1/AA+
AA+

4.08 3.68
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of May 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
91282CHR5 UNITED STATES TREASURY 4.0
07/31/2030 5,000,000.00 10/23/20253.59%
5,089,062.50
5,077,808.19

99.55 4.12%
4,977,540.00
66,850.83

2.41%
(100,268.19)
Aa1/AA+
AA+

4.17 3.75
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 5,000,000.00 --3.66%
4,991,425.79
4,992,735.65

98.08 4.12%
4,903,906.25
45,805.03

2.37%
(88,829.40)
Aa1/AA+
AA+

4.25 3.86
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 5,000,000.00 --3.59%
5,008,789.06
5,007,709.34

98.05 4.12%
4,902,343.75
30,703.55

2.37%
(105,365.59)
Aa1/AA+
AA+

4.33 3.94
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 1,750,000.00 12/15/20253.73%
1,731,816.41
1,733,494.12

97.44 4.13%
1,705,224.50
167.35

0.83%
(28,269.62)
Aa1/AA+
AA+

4.50 4.11
91282CQG9 UNITED STATES TREASURY 3.875
03/31/2031 3,500,000.00 05/21/20264.28%
3,438,066.41
3,438,415.53

98.85 4.14%
3,459,804.67
22,974.73

1.67%
21,389.14
Aa1/AA+
AA+

4.83 4.33
Total US Treasury 97,650,000.00 3.83%
97,331,239.90
97,480,375.09

99.36 4.03%
97,015,511.92
930,865.35

46.94%
(464,863.17)

2.75 2.52
Total Portfolio 208,928,512.71 4.09%
206,664,263.84
207,337,555.21

98.78 4.19%
206,688,538.45
1,749,412.65
100.00%
(649,016.75)

2.94 2.53
Total Market Value +
Accrued 208,437,951.10
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TRANSACTIONS
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TRANSACTION LEDGER
City of Cupertino | Account #10659|03/01/2026 Through 05/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 03/10/2026 24422EYL7 1,060,000.00 JOHN DEERE CAPITAL CORP 4.2 03/10/2031 99.978 4.20% (1,059,766.80) 0.00 (1,059,766.80) 0.00 Purchase 03/13/2026 79466LAQ7 680,000.00 SALESFORCE INC 4.5 03/15/2028 100.214 4.38% (681,455.20) 0.00 (681,455.20) 0.00 Purchase 03/13/2026 79466LAQ7 675,000.00 SALESFORCE INC 4.5 03/15/2028 100.271 4.35% (676,829.25) 0.00 (676,829.25) 0.00 Purchase 04/21/2026 89240QAD7 760,000.00 TAOT 2026-B A3 4.13 12/16/2030 99.979 4.27% (759,839.72) 0.00 (759,839.72) 0.00 Purchase 04/28/2026 91282CQA2 4,000,000.00

UNITED STATES
TREASURY 3.5
02/15/2029

99.168 3.81% (3,966,718.75) (27,845.30) (3,994,564.05) 0.00 Purchase 05/15/2026 14913V2D9 525,000.00

CATERPILLAR

FINANCIAL SERVICES
CORP 4.5 05/15/2031

99.863 4.53% (524,280.75) 0.00 (524,280.75) 0.00
Purchase 05/22/2026 91282CQG9 3,500,000.00

UNITED STATES
TREASURY 3.875
03/31/2031

98.230 4.28% (3,438,066.41) (19,269.13) (3,457,335.54) 0.00 Purchase 05/28/2026 161571JA3 1,595,000.00 CHAIT 2026-1 A 4.4 05/15/2029 99.976 4.45% (1,594,622.62) 0.00 (1,594,622.62) 0.00 Purchase 06/03/2026 38151LAJ9 675,000.00

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% (675,000.00) 0.00 (675,000.00) 0.00
Purchase 06/03/2026 38151LAJ9 (675,000.00)

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% 675,000.00 0.00 0.00 0.00
Purchase 06/03/2026 38151LAJ9 675,000.00

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% (675,000.00) 0.00 0.00 0.00
Total Purchase 13,470,000.00 (13,376,579.50) (47,114.43) (13,423,693.93) 0.00 TOTAL
ACQUISITIONS 13,470,000.00 (13,376,579.50) (47,114.43) (13,423,693.93) 0.00

DISPOSITIONS
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TRANSACTION LEDGER
City of Cupertino | Account #10659|03/01/2026 Through 05/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss Maturity 04/20/2026 4581X0DV7 (2,460,000.00)

INTER-AMERICAN

DEVELOPMENT BANK

0.875 04/20/2026
100.000 0.97% 2,460,000.00 0.00 2,460,000.00 0.00
Maturity 04/30/2026 91282CBW0 (2,500,000.00)

UNITED STATES
TREASURY 0.75
04/30/2026
100.000 0.80% 2,500,000.00 0.00 2,500,000.00 0.00
Total Maturity (4,960,000.00) 4,960,000.00 0.00 4,960,000.00 0.00 Sale 04/17/2026 931142ER0 (350,000.00) WALMART INC 1.05 09/17/2026 98.797 1.09% 345,789.50 306.25 346,095.75 (4,155.07) Sale 04/17/2026 57636QAW4 (945,000.00) MASTERCARD INC

4.875 03/09/2028 101.604 4.90% 960,157.80 4,862.81 965,020.61 15,504.99 Sale 05/12/2026 78016HZV5 (2,000,000.00)

ROYAL BANK OF
CANADA 4.95
02/01/2029
101.596 4.69% 2,031,920.00 27,775.00 2,059,695.00 19,144.52 Total Sale (3,295,000.00) 3,337,867.30 32,944.06 3,370,811.36 30,494.44 TOTAL
DISPOSITIONS (8,255,000.00) 8,297,867.30 32,944.06 8,330,811.36 30,494.44 36 383
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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 “asis” 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.

LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yieldsrepresent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end. 37 384
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BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr US Treasury & Agency
Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than 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. 38 385
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CITY OF CUPERTINO
Agenda Item
25-14448 Agenda Date: 7/7/2026
Agenda #: 8.

Subject: Receipt of the Monthly Treasurer's Report for May 2026.

Receive the Monthly Treasurer's Report for May 2026.

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FINANCE DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3220
CUPERTINO.GOV
1 CITY COUNCIL STAFF REPORT
Date: July 7, 2026
Subject
Receipt of the Monthly Treasurer's Report for May 2026
Recommended Action
Receive the Monthly Treasurer's Report for May 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.

Under cash basis accounting, revenues are recorded when payment is received, and expenses are recorded when payment is made. This method of accounting recognizes transactions only when cash changes hands. In contrast, accrual basis accounting 387
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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, Councilapproved budget adjustments, quarterly Cost Allocation Plan (CAP) charges, and quarterly interest earnings.

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

Treasurer's Report
The report provides an update on the City's cash and fund balances for May 2026. The report is as of June 30, 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 $217.4 million, increasing by $8.9 million from the prior month. Receipts were $13.7 million, disbursements were $(5.8) million, and journal adjustments were $1.0 million for the month.

The City's total ending cash and investment balance was $326.5 million, increasing by $

4.7 million from the prior month. Receipts were $14.2 million, disbursements were $(11.3) million, and journal adjustments were $1.8 million for the month.

Journal adjustments included the following:
• Parks and Recreation transactions imported from Active Network into New World
• Worker’s Compensation journals
• Investment Earnings
• Bank Reconciliation
• Investment Transfers to CalFIT
• Bank Fees
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3 Fund Balance/Net Position
The City's General Fund ending fund balance was $152.6 million, increasing by $8.0 million from the prior month due to revenues of $14.3 million and expenditures of $6.3 million.

The City's total ending fund balance was $247.8 million, increasing by $3.8 million from the prior month due to revenues of $15.6 million and expenditures of $11.8 million.

Sustainability Impact
No sustainability impact.

City Work Program (CWP) Item/Description:

N/A
Council Goal:

Fiscal Strategy
Fiscal Impact
No fiscal impact.

California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: __________________
Jonathan Orozco
Finance Director
Approved for Submission by: __________________
Tina Kapoor
City Manager
Attachments:

A – Report of City-wide Receipts, Disbursements, and Cash Balances May 2026 B – Report of City‐wide Fund Balances/Net Position May 2026 389
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May 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 April 30, 2026 Receipts Disbursements Journal Adjustments as of May 31, 2026 General Fund 100 General Fund 208,445,162 13,724,779 (5,774,516) 965,194 217,360,619 General Fund 130 Investment Fund 452,481 ‐ ‐ 525,264 977,745 Special Revenue Funds 210 Storm Drain Improvement 152,828 ‐ ‐ 2 152,830 Special Revenue Funds 215 Storm Drain AB1600 2,370,838 3,846 ‐ 35 2,374,720Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 700,580 1,560 (109,184) 10 592,967 Special Revenue Funds 260 CDBG 732,766 29,685 (37,277) 14 725,188Special Revenue Funds 261 HCD Loan Rehab 230,372 ‐ ‐ ‐ 230,372 Special Revenue Funds 265 BMR Housing 4,781,988 ‐ (60,857) 71 4,721,203 Special Revenue Funds 270 Transportation Fund 15,993,676 280,574 (216,146) 239 16,058,342Special Revenue Funds 271 Traffic Impact 953,916 ‐ ‐ 14 953,930 Special Revenue Funds 280 Park Dedication 21,432,517 15,000 (6,867) 320 21,440,970 Special Revenue Funds 281 Tree Fund 81,908 ‐ ‐ 1 81,909 Debt Service Funds 365 Public Facilities Corp 2,436,800 ‐ (2,438,300) ‐ (1,500) Capital Project Funds 420 Capital Improvement Fund 36,231,799 ‐ (1,663,432) ‐ 34,568,368 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 5,043,102 143,486 (139,194) 75 5,047,470Enterprise Funds 560 Blackberry Farm 842,423 3,276 (75,602) 72,905 843,001 Enterprise Funds 570 Sports Center 1,469,100 35,116 (108,193) 84,824 1,480,847 Enterprise Funds 580 Recreation Program 3,262,020 4,275 (104,574) 142,876 3,304,597Internal Service Funds 610 Innovation & Technology 3,001,183 ‐ (328,699) 45 2,672,528Internal Service Funds 620 Workersʹ Compensation 4,085,326 ‐ (7,307) (5,595) 4,072,424 Internal Service Funds 630 Vehicle/Equip Replacement 1,259,454 ‐ (102,429) 19 1,157,044Internal Service Funds 641 Compensated Absence/LTD 100,996 ‐ 9,413 2 110,411 Internal Service Funds 642 Retiree Medical 401,686 ‐ (164,010) 6 237,682 Total $ 321,762,511 $ 14,241,596 $ (11,327,175) $ 1,786,322 $ 326,463,254 * For reporting purposes, this fund rolls up/combines with Fund 420Printed June 30, 2026For more information on funds, please see cupertino.org/fund‐structure 390
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May 2026 Report of City‐wide Fund Balances/Net Position (Unaudited)
Beginning Fund Balance Ending Fund Balance
Fund Type Fund Number/Name as of April 30, 2026 Revenues Expenditures as of May 31, 2026 General Fund 100 General Fund 144,572,165 14,282,242 6,299,327 152,555,081 General Fund 130 Investment Fund 681,905 525,264 ‐ 1,207,170Special Revenue Funds 210 Storm Drain Improvement 2,123,519 2 ‐ 2,123,522Special Revenue Funds 215 Storm Drain AB1600 1,885,165 3,881 ‐ 1,889,047 Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 1,127,475 10 116,312 1,011,174 Special Revenue Funds 260 CDBG 1,710,280 29,699 37,277 1,702,701 Special Revenue Funds 261 HCD Loan Rehab 222,016 ‐ ‐ 222,016Special Revenue Funds 265 BMR Housing 9,478,467 71 60,857 9,417,682 Special Revenue Funds 270 Transportation Fund 10,570,648 280,812 216,973 10,634,487 Special Revenue Funds 271 Traffic Impact 779,295 14 ‐ 779,310 Special Revenue Funds 280 Park Dedication 18,769,500 15,320 6,867 18,777,953 Special Revenue Funds 281 Tree Fund 80,074 1 ‐ 80,075
Debt Service Funds 365 Public Facilities Corp 1,750 ‐ 2,438,300 (2,436,550) Capital Project Funds 420 Capital Improvement Fund 20,946,549 ‐ 1,741,245 19,205,304 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 4,863,045 143,561 139,194 4,867,413 Enterprise Funds 560 Blackberry Farm 725,116 81,590 76,634 730,072 Enterprise Funds 570 Sports Center 1,905,452 124,722 109,187 1,920,987 Enterprise Funds 580 Recreation Program 2,991,125 136,333 104,635 3,022,823 Internal Service Funds 610 Innovation & Technology 1,476,954 45 328,699 1,148,299 Internal Service Funds 620 Workersʹ Compensation 2,129,705 61 12,963 2,116,803 Internal Service Funds 630 Vehicle/Equip Replacement 2,417,785 19 102,429 2,315,375 Internal Service Funds 641 Compensated Absence/LTD 712,874 18,146 8,731 722,289 Internal Service Funds 642 Retiree Medical (161,826) ‐ ‐ (161,826) Total $ 243,911,023 $ 15,641,796 $ 11,799,631 $ 247,753,187* For reporting purposes, this fund rolls up/combines with Fund 420 Printed June 30, 2026For more information on funds, please see cupertino.org/fund‐structure 391
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CITY OF CUPERTINO
Agenda Item
26-14969 Agenda Date: 7/7/2026
Agenda #: 9.

Subject: Bi-Annual Strategic Planning Process.

Approve the Bi-Annual Strategic Planning Process as presented at the February 28, 2026 Special City Council meeting.

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CITY COUNCIL STAFF REPORT
Meeting: July 7, 2026
Subject
Bi-Annual Strategic Planning Process.

Recommended Action
Approve the Bi-Annual Strategic Planning Process as presented at the February 28, 2026 Special City Council meeting.

Description
On February 28, 2026, a special meeting was held covering City Council governance and strategic planning. The focus of the strategic planning portion of the meeting was to review the Strategic Vision Framework that Council unanimously adopted in March 2025 and to present a proposal for maintaining the strategic plan, including key milestones during the two-year planning process.

The Strategic Vision Framework that Council adopted in 2025 is intended to guide decision making and long-term planning for the City, as well as to establish priorities for the City Work Program (CWP). These priorities were established through the adoption of six Council goals (Public Engagement & Transparency, Transportation, Housing, Quality of Life, Environmental Sustainability, and Fiscal Strategy) and three focus areas (Fiscal Resilience, Small Business Revitalization, and Emergency Management). The FY 2025-26 and 2026-27 CWP was developed in support of these goals and focus areas.

The main purpose of the strategic planning portion of the February 28 workshop was to present a proposal for an ongoing maintenance plan for the Strategic Vision Framework to establish a consistent process, set expectations for key milestones, and align resources amongst the CWP, operating budget, and 5-year Capital Improvement Program (CIP).

Staff’s proposal contemplated this maintenance plan retaining the key elements of the Strategic Vision Framework, including maintaining a two-year planning cycle to ensure continuity across election cycles. It is important to note, however, that the plan includes 393
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regular updates on the CWP that will allow for adjustments or reprioritizations at Council’s discretion.

Key components of the target timeline and major deliverables that were proposed include a Council strategic planning workshop bi-annually, with semi-annual updates to the CWP that align with operating budget and 5-year CIP timelines. The entire targeted timeline and major deliverables are included as Attachment A. These timelines and deliverables have been updated based on Council feedback provided at the workshop, which predominantly consists of clarifications and additional information.

If the proposed process is not approved, staff will continue existing practice in implementing Council direction. Future strategic planning milestones and CWP updates would continue to be brought to Council as necessary, rather than through a Council approved planning process. Approval of the proposed process is intended to improve the efficiency and predictability of long-term strategic planning.

Sustainability Impact
There is no sustainability impact related to this agenda item.

Fiscal Impact
There is no direct fiscal impact related to this agenda item. The fiscal impact of the City Work Program will be identified as a part of the overall process to develop the strategic plan and the City Work Program.

City Work Program (CWP) Item/Description
None.

Council Goal:

Public Engagement and Transparency, Quality of Life
California Environmental Quality Act
Not applicable.
_____________________________________
Prepared by: Kirsten Squarcia, Deputy City Manager
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – Target Timeline and Major Deliverables
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Fiscal Year 2026-2027
Timeline and Milestones
Sept/Oct
2026
Dec
2026
Jan/Feb
2027
Feb/Mar
2027
Mar/Apr
2027
May
2027
Mid-cycle (end of Year 1) update on CWP
Annual new Mayor and Council orientation
Query Councilmembers on initiatives for
upcoming strategic planning workshop in
March
Staff consolidates initial priorities identified
by Council and develops high-level
resource estimates
Mid-year operating budget review
CWP update - opportunity for adjustments
or reprioritization of initiatives
Preliminary review of 5-year CIP
Bi-annual Council priority setting
workshop in March
Study session to introduce proposed
operating budget (FY 2027-28) in April
Delivery of operating budget to Council
Council approval of new CWP (FY 2027-28
through FY 2028-29)
Study session on substantially complete 5-
year CIP
June
2027 Public hearing and adoption of operating
budget
Public hearing and adoption of 5-year CIP July
2026
Begin implementation of Year Two of
existing City Work Program (CWP) initiatives
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Fiscal Year 2027-2028
Timeline and Milestones
Close out out report on prior CWP
Brief update of new CWP
CIP update to Council
Begin implementation of new
City Work Program
Annual New Mayor and Council
orientation
Mid-year budget update
CWP update with opportunity to adjust
or reprioritize as needed
Preliminary preview of 5-year CIP
Sept/Oct
2027
Nov
2027
Dec
2027
Apr
2028
July
2027
Feb/Mar
2028
May
2028
June
2028
Introduction of proposed
operating budget (FY 2028-29)
Delivery of operating budget
Delivery of 5-year CIP
Public hearing and adoption of
operating budget
Public hearing and adoption of 5-year
CIP
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CITY OF CUPERTINO
Agenda Item
26-15096 Agenda Date: 7/7/2026
Agenda #: 10.

Subject: Review of Future agenda items requested by City Councilmembers (“TBD List”).

Review the TBD list and accept the staff recommendations for all items.

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CITY MANAGER’S OFFICE

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3212
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Date: July 7, 2026
Subject
Review of future agenda items requested by City Councilmembers (“TBD List”).

Recommended Action
Review the TBD list and accept the staff recommendations for all items.

Reasons for Recommendation and Available Options
As required per the City Council’s adopted Procedures Manual, the City Manager provides a quarterly report to Council regarding the status of future agenda items. These are items that the Mayor or at least two Councilmembers have requested to be added to a future City Council agenda.

Background
On March 17, Council reviewed the TBD list and accepted the staff recommendations for all 29 items. Since that meeting, 14 items have been removed while seven items have been added to the TBD list for consideration.

The updated TBD list is included as Attachment A with staff recommendations for all 22 items.

A majority vote of the City Council can either agendize an item for discussion at a future date or remove an item from the list, as outlined in the Council Procedures Manual.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

City Work Program (CWP) Item/Description
None
Council Goal:

Public Engagement and Transparency
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California Environmental Quality Act
No California Environmental Quality Act impact.
_____________________________________
Prepared by: Astrid Robles, Assistant to the City Manager Reviewed by: Kirsten Squarcia, Deputy City Manager
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – TBD List as of July 2026
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A - TBD List as of July 2026
# Requested Item Requestor/
Seconder
Date
Requested Recommendation
Date
Council
Approved
1 Study Session on enterprise fund i.e. at BBF and
McClellan Ranch
Requestor:

Moore
Seconder:

Chao
Added in
agenda
review;
clarified
and
bifurcated
3/5/26 via
agenda
review
Staff will issue an info memo on
this topic and schedule a
subsequent study session if needed
12/1/25
approved by
council to
agendize
2 Study Session to review the Arts & Culture
Commission’s recommendation to the Municipal
Code standards for art in public and private
development, including the standards in the
Municipal Code and developing an Art-in-lieu fee
policy. (Application No. MCA-2025-003)
Added by
City Council
Added at
10/21/25 CC
Meeting
Staff recommends removing this
item from this list once it has been
heard by the City Council.
12/1/25
approved by
council to
agendize
3 Approval process for any entity to place their
logo, name, brand, on any City property
Requestor:

Chao
Seconder:

Moore
11/13/25 in
agenda
review
This item is scheduled for the July
21 City Council meeting. Staff
recommends removing this item
from this list once it has been heard
by the City Council.
12/1/25
approved by
council to
agendize
4 Veterans Day Event Support Requestor:

Moore
Seconder:

Chao
11/13/25 in
agenda
review
Staff recommends removing this
item from this list once it has been
heard by the City Council.
12/1/25
approved by
council to
agendize
5 Veterans Day Memorial Maintenance Requestor:

Moore
Seconder:

Chao
11/13/25 in
agenda
review
Staff will issue an info memo on
this topic and recommends
removing this item from this list.
12/1/25
approved by
council to
agendize
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A - TBD List as of July 2026
# Requested Item Requestor/
Seconder
Date
Requested Recommendation
Date
Council
Approved
6 Study Session on Santa Clara County Wolfe Road
Housing Project
Requestor:

Chao
Seconder:

Moore
12/2/25
Added by
email
Council received a presentation
from the County in March. Staff
recommends removing this item
from this list.

N/A
7 Uncashed Checks/Unclaimed Funds Policy Added by
Mayor
Moore
2/5/26 in
agenda
review
Staff is amending this
administrative policy and will be
issuing an info memo clarifying the
workflow and adding transparency
by creating a website that will be
linked in the memo. Staff
recommends removing this item
from this list once it has been
amended.

N/A
8 Revise BMR manual to give preference to longtime residents. This is especially needed for the IDD population who grew up in Cupertino.

Research changing the term of the BMRs to match
the 99 years in the Housing Element, look at being
interpreted as only for the for sale.

Requestor:

Chao
Seconder:

Moore
2/6/26
Added by
email and
modified
3/5/26 in
agenda
review
Staff will present this item to
Council pending legal review. Staff
recommends removing this item
from this list once it has been heard
by the City Council.

N/A
9 Discuss eBike and eScooter safety concerns:

1. Define the Class 1,2, and 3 bike/scooter
categories;

2. Matrix comparing State and cities' laws with
two options for Cupertino;

3. A Report explaining the two options.

E-bike and E-scooter (including dockless) rental
and safety regulations ordinance
Requestor:

Moore
Seconder:

Chao
2/19/26
Added by
email and
modified
4/20/26 in
Agenda
Review
Staff held a community meeting to
discuss safety and address concerns
and provided outreach and
education materials on the website.

Staff will continue to do more
education on this topic. Staff will
bring a draft ordinance for Council
consideration and recommends
N/A
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A - TBD List as of July 2026
# Requested Item Requestor/
Seconder
Date
Requested Recommendation
Date
Council
Approved
removing this item after it has been
heard by Council.
10 Fire hazard severity zone mitigation and
coordination with Mid-Pen and Supervisor AbeKoga
Requestor:

Moore
Seconder:

Chao
3/5/26 in
agenda
review
Council formed an informal ad-hoc
subcommittee around this topic
with Councilmember Wang and
Fruen. Their work is underway
therefore staff recommends
removing this item from this list.

N/A
11 Red-Light Camera and Speed Enforcement
Technologies. Provide information on why this
program was not cost-effective for the City in
2004, any new technologies that may be available,
and details on installing a red-light camera at De
Anza Boulevard and Stevens Creek Boulevard
Added by
Mayor
Moore and
City
Manager
3/5/26 in
agenda
review
Modified
on 4/20/26
in agenda
review
Staff recommends removing this
item from this list as this is a City
Work Program item.

N/A
12 Crossing guard services Added by
Mayor
Moore
3/5/26 in
agenda
review
Staff issued an info memo on this
topic on June 26 and recommends
removing this item from this list.

N/A
13 Review of Cupertino Historical Society Contract Added by Mayor
Moore
3/5/26 in
agenda
review
Staff will be issuing an info memo
on this topic. Council can agendize
this item if desired, if not, staff
recommends removing this item
from this list.

N/A
14 Study session on Stevens Creek Quarry & Lehigh
noise concerns and outdoor rock crushing plant
operated by Vulcan Materials
Added by
Mayor
Moore
3/10/26 after
meeting
with
resident
Staff recommends removing this
item from this list once it has been
heard by the City Council.

N/A
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A - TBD List as of July 2026
# Requested Item Requestor/
Seconder
Date
Requested Recommendation
Date
Council
Approved
15 Study Session on budgetary tracking of various
fees AB 1600/in-lieu fees and SB 1 funds
Requestor:

Moore
Seconder:

Chao
10/27/25
Added in
agenda
review
Staff will issue an info memo on
this topic and subsequent study
session if needed
N/A
16 Discussion to protect the Finch property and have
it rezoned as park land
Requestor:

Wang
Seconder:

Chao
4/30/26
Added via
email
This item to be considered after
purchase of Finch Property is
complete. Staff recommends
removing this item from this list
once it has been heard by the City
Council.

N/A
17 Pickleball:

1. Private Courts: new and conversions Online
videos and resources showing residential
backyard pickleball court installations;
Potential zoning and residential compliance
considerations for backyard pickleball courts

2. Public Courts:
a. Consider providing more pickleball
courts at the Sports Center om the side
along Stevens Creek, away from the
Commons residential area. (Thus, please
consider this option when restricting the
courts at Sports Center, one of the CIP
projects)
b. Consider working with De Anza College
so the pickleball nets are available for
their existing 6 pickleball voters.
c. And consider any other options for
pickleball courts
Requestor:

Moore
Seconder:

Chao
5/18/26
Added via
email and
Modified
6/18/26
Staff recommends removing this
item from this list once it has been
heard by the City Council.

N/A
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A - TBD List as of July 2026
# Requested Item Requestor/
Seconder
Date
Requested Recommendation
Date
Council
Approved
18 Municipal Code Amendments regarding cleanup
of the Floor Area Ratio Definitions in the CMC

19.08.030
Moore 5/29/26
Added via
email
This item is scheduled to go to the
Planning Commission then go to
Council in fall 2026. Staff
recommends removing this item
from this list once it has been heard
by the City Council.

N/A
19 Study session on California's Assembly Bill 1572
(AB 1572) prohibiting the use of potable
(drinking) water to irrigate non-functional turf at
commercial, industrial, and institutional
properties, as well as common areas and HOAs
Requestor:

Moore
6/5/26
Added in
agenda
review
This item is scheduled to come to
Council in the fall following the
legislative session. Staff
recommends removing this item
from this list once it has been heard
by the City Council.

N/A
20 Discussion of a Public Safety, Library, Public
Facility Impact Fee
Requestor:

Moore
6/9/26
Added
verbally
Staff recommends removing this
item from this list once it has been
heard by the City Council.

N/A
21 Study Session to return with the First Quarter FY
2026-27 Budget Update to review cost estimates
and implementation options for wildfire
preparedness, mitigation, evacuation, and homehardening initiatives.

Requestor:

Fruen
Seconder:

Wang
6/16/26 City
Council
Meeting
Staff recommends removing this
item from this list once it has been
heard by the City Council.

N/A
22 Data Center Zoning Requestor:

Moore
6/25/26
Added via
email
Staff will be issuing an info memo
on this topic. Council can agendize
this item if desired, if not, staff
recommends removing this item
from this list.

N/A
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CITY OF CUPERTINO
Agenda Item
26-15211 Agenda Date: 7/7/2026
Agenda #: 11.

Subject: Approval of a Final Map, Subdivision Improvement Agreement, and Related Easement Actions for the 59-Unit Valencia Development Project (Tract No. 10676; Applicant: SummerHill Stevens Creek LLC; Location: Formerly 20770, 20830 and 20840 Stevens Creek Blvd; APN: 359-08-031) Adopt Resolution No. 26-079 (Attachment A):
1) Approving the final map consisting of Tract No. 10676; 2) Accepting the street dedication and public easements, and the abandonment of unnecessary public easements as shown on the map; and
3) Authorizing the City Engineer to execute and record the Subdivision Improvement Agreement.

CITY OF CUPERTINO Page 1 of 1 Printed on 7/2/2026
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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: July 7, 2026
Subject
Approval of a Final Map, Subdivision Improvement Agreement, and Related Easement Actions for the 59-Unit Valencia Development Project (Tract No. 10676; Applicant: SummerHill Stevens Creek LLC; Location: Formerly 20770, 20830 and 20840 Stevens Creek Blvd; APN: 359-08-031) Recommended Action
Adopt Resolution No. 26-XXX (Attachment A):
1) Approving the final map consisting of Tract No. 10676; 2) Accepting the street dedication and public easements, and the abandonment of unnecessary public easements as shown on the map; and
3) Authorizing the City Engineer to execute and record the Subdivision Improvement Agreement.

Background
The Valencia Development Project is comprised of one existing parcel that will be subdivided into 13 parcels for 59 townhome-style condominium units. The project would demolish the existing onsite buildings, construct eight separate 3-story residential buildings, and install street improvements along the Stevens Creek Boulevard frontage, including new curb, gutter, sidewalk, and green stormwater infrastructure within the parkstrip. On July 1, 2025, the City Council adopted Resolution No. 25-053 approving the Development Permit (DP-2024-002) and Resolution No. 25-056 approving the Vesting Tentative Map (TM-2024-001) for the Valencia Development Project.

In May 2025, prior to planning approval, the applicant proceeded at risk and submitted the final map for review. Concurrently, the applicant submitted a demolition permit application for demolition of the existing buildings, and building permit applications for the onsite and offsite improvements. The applicant was issued a demolition permit in June 2026, and the demolition work will be completed prior to the recordation of the final map. The building permit applications have been approved and are ready to be issued following the recordation of the final map. 406
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Reasons for Recommendation and Available Options
Final Map
The proposed final map (Attachment B) includes a public street dedication in fee title and various public easements necessary to accommodate the approved use. The map also abandons unnecessary public easements.

Based on staff’s review, the final map is in substantial compliance with the approved tentative map and conforms to the requirements of the Subdivision Map Act and the Cupertino Municipal Code (CMC). Under the Subdivision Map Act and the Cupertino Municipal Code, approval of the final map is a ministerial act (CMC § 18.16.200(B); Gov. Code § 66458, 66474.1). Staff recommends that the City Council approve the final map.

Subdivision Improvement Agreement
The applicant has executed a Subdivision Improvement Agreement (SIA) (Attachment C) with the City. The SIA and the associated improvement plans include, as required by the conditions of approval to the Tentative Map, new curb, gutter, detached sidewalk, driveway aprons, street trees, green stormwater infrastructure within the park strip, and various utility connections consistent with City standards, along the project’s Stevens Creek Boulevard property frontage.

Pursuant to CMC § 18.32, the SIA requires the applicant to construct these improvements and provide security for their completion. The proposed SIA also sets out a schedule for the applicant’s payment of various City fees and bonds. This schedule follows the deadlines set in the Cupertino Municipal Code. Staff therefore recommends that the City Council authorize the City Engineer to execute and record the SIA.

Sustainability Impact
No sustainability impact.

Fiscal Impact
As part of the Vesting Tentative Map approval, the project will be generating the following revenue: Parkland Dedication In-Lieu Fees (Fund 280) – $2,538,000, Transportation Impact Fees (Fund 271) – $11,637, Storm Drainage Fees (Fund 215) – $33,420, and other various cost recovery permitting fees. A revenue budget adjustment is not required.

City Work Program (CWP) Item/Description
None
Council Goal:

Quality of Life, 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
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Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – Draft Resolution
B – Final Map
C – Subdivision Improvement Agreement
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RESOLUTION NO. 26-XXX

A RESOLUTION OF THE CUPERTINO CITY COUNCIL
APPROVING THE FINAL MAP – TRACT NO. 10676, ACCEPTING THE

PUBLIC STREET AND PUBLIC EASEMENTS OFFERED FOR DEDICATION,

ABANDONING UNNECESSARY PUBLIC EASEMENTS, AND

AUTHORIZING THE CITY ENGINEER TO EXECUTE AND RECORD THE

SUBDIVISION IMPROVEMENT AGREEMENT FOR THE VALENCIA
DEVELOPMENT PROJECT LOCATED AT FORMERLY 20770, 20830 AND 20840 STEVENS CREEK BOULEVARD (APN: 359-08-0321)
WHEREAS, on July 1, 2025, the City Council adopted Resolution No. 25- 056 approving a Vesting Tentative Map for a 13-lot subdivision for condominium purposes for 59 townhome-style units; and
WHEREAS, the proposed final map conforms to the requirements of the Subdivision Map Act and the Cupertino Municipal Code and is in substantial compliance with the approved Vesting Tentative Map; and WHEREAS, the Valencia Development Project, including the Vesting Tentative Map and Final Map, is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15332 of the CEQA Guidelines; and
WHEREAS, certain public easements are to be abandoned as they are made unnecessary by the proposed public roadway dedication in fee title as shown on the Final Map; thereby preserving all rights and protections for any public utilities within the area; and
WHEREAS, public roadway dedication and public easements are necessary to accommodate the approved use of the property and have been offered for dedication and granted with the map; and
WHEREAS, the Subdivision Improvement Agreement has been presented to the City Council in a form ready to be executed; and WHEREAS, the Final Map for the property located at formerly 20770, 20830, and 20840 Stevens Creek Boulevard has been presented to the City Council. 409
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Resolution No. 26-XXX