CC 10-06-2026 Searchable Packet.pdf — Cupertino City Council, October 6, 2026 (part 1 of 7)

Tuesday, October 6, 2026
5:45 PM

CITY OF CUPERTINO
Non-Televised Closed Session Meeting (5:45) and Televised Regular Meeting (6:45)
10300 Torre Avenue and 10350 Torre Avenue, Council Chamber and via Teleconference; and Teleconference Location Pursuant to Gov. Code 54953(b) (2): Marriott Marquis NYC , Hotel Lobby, 1535 Broadway, New York, NY 10036
City Council

KITTY MOORE, MAYOR

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

SHEILA MOHAN, COUNCILMEMBER
R "RAY" WANG, COUNCILMEMBER

IN PERSON AND TELECONFERENCE MEETING
AGENDA
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To access written translation during the meeting
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https://attend.wordly.ai/join/NVUR-8095
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Use a headset on your phone for audio or read the transcript on your device. |寞ὦ䔏㈲㜡倚㜡㔝␓柚桸ㇽ✏宥⣮ᷱ旬寢
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CONDUCT OF BUSINESS
The Mayor is the presiding officer of the City Council. Any member of the public may speak on any item on the agenda for up to three minutes. All statements and questions must be addressed to the Mayor.

City Council hearings serve as a venue for the discussion of sometimes divergent points of view. Please respect the opinions of others and refrain from cheering or clapping. That may delay the meeting or intimidate other persons wishing to express alternate views. Actions that disrupt the meeting will result in a warning, followed by removal if disruption continues.

Oral public comments will be accepted during the meeting. Comments may be made during “oral communications” for matters not on the agenda, and during the public comment period for each agenda item.

Identifying yourself is voluntary and not required to attend the meeting or provide comments.

FLOWCHART FOR HEARING ITEMS:

Mayor introduces
agenda item
Councilmembers report any site
visits or outside communications.

Speakers submit a Request to Speak
card, and are allowed up to 3 minutes
per individual. Council members may
ask questions of speakers.

Mayor invites members of
the public to speak about
the agenda item
For appeals of approvals, the
applicant may respond to
appellants presentation.

The Mayor may request a motion and
a second after the close of the public
hearing. Council then deliberates and
votes.

Mayor closes the public hearing
Councilmembers ask clarifying
questions.

PUBLIC HEARINGS
The City Council is required by law to
hold public hearings on certain matters
prior to making its decision. Notice to
interested parties is given by legal
advertisement in the local newspaper of
general circulation at least 10 calendar
days preceding the hearing date.

Applications requiring public hearings
include change of zoning, variances, use
permits, and tentative maps.

COUNCIL MEETINGS
The City Council regularly meets the first
and third Tuesdays of each month. These
meetings are held at 6:45 p.m. Closed
sessions, when needed, are normally held
at 6:00 p.m. Closed sessions cover items
such as personnel, litigation, or the sale ,
purchase, or lease of property. The law
requires certain actions taken in closed
session to be reported in open session.

Urgent business, holidays, or election
days may trigger special or adjourned
meetings. These meetings will be noticed
beforehand.

AGENDAS, MINUTES, AND PACKETS

AVAILABLE ON THE WEB
Agendas, minutes, and packets for
current and prior City Council and
Planning Commission meetings are
available at www.cupertino.org, or you
can purchase the items on CD.

CITY COUNCIL DECISION IS FINAL
Prior to seeking judicial review of any
adjudicatory (quasi‐judicial) decision,
interested persons must file a petition for
reconsideration within ten calendar days
of the date the City Clerk mails notice of
the City’s decision. Reconsideration
petitions must comply with the
requirements of Cupertino Municipal
Code §2.08.096. Contact the City Clerk’s
office for more information or go to
www.http://www.cupertino.org/index.as
px?page=125 for a reconsideration
petition form.

Mayor invites
applicant/appellant to
respond to public
comments (2 min)
City Council votes on
the agenda item
Staff reports and makes
recommendation
Applicant or Appellant
makes presentation
(up to 8 min)
Councilmembers ask
questions of staff or
applicant/appellant
Mayor opens the public hearing
City Council Agenda October 6, 2026

IN-PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION OPTIONS TO OBSERVE:

Members of the public wishing to observe the meeting may do so in one of the following ways:
1) Attend in person at Cupertino Community Hall, 10350 Torre Avenue. 2) Tune to Comcast Channel 24 or Channel 26 and AT&T U-Verse Channel 99 on your TV. 3) Watch a live stream online at www.Cupertino.gov/youtube and www.Cupertino.org/webcast
4) Attend in person at a remote Teleconference Location noticed pursuant to Gov. Code 54953(b)(2), which location, if noticed, would be stated on the cover page of this agenda.

OPTIONS TO PARTICIPATE AND COMMENT:

Members of the public wishing to address the City Council may do so in the following ways:
1) Appear in person for Closed Session in City Hall, Conference Room C or for Open Session in Cupertino Community Hall.

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

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

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

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

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

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

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

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

Certain functionality may be disabled in older browsers, including Internet Explorer. e) CLOSED SESSION REGISTRATION LINK:
https://cityofcupertino.zoom.us/webinar/register/WN_v1irdFvBTdiHe2RWIgTQMw f) OPEN SESSION REGISTRATION LINK:
https://cityofcupertino.zoom.us/webinar/register/WN_nzJqJqAXQKyzQv4I677d0A B. By Phone (Audio only): No registration is required in advance and speakers may join the meeting as follows:
a) Dial 669-900-6833
CLOSED SESSION WEBINAR ID: 823 5035 7535
OPEN SESSION WEBINAR ID: 839 4334 9939
b) To “raise hand” to speak: Dial *9; When asked to unmute: Dial *6

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c) Speakers will be recognized to speak by the last four digits of their phone number.

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

CALL TO ORDER - 5:45 P.M.
10300 Torre Avenue, Conference C and via teleconference

ROLL CALL

CLOSED SESSION

1. Subject: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (California Government Code sections 54954.5 and 54956.9) Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (1 case potential case)

2. Subject: CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(California Government Code Sections 54954.5 and 54956.8)

1. Property: 10480 Finch Avenue, Cupertino, CA

2. Agency Negotiators: Tina Kapoor, City Manager and Floy Andrews, Interim City Attorney

3. Negotiating Parties: City of Cupertino and Cupertino Union School District

4. Under Negotiation: Price and terms of payment
RECESS

OPEN SESSION
CALL TO ORDER - 6:45 P.M.
10350 Torre Avenue, Council Chamber and via Teleconference

PLEDGE OF ALLEGIANCE

ROLL CALL

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CLOSED SESSION REPORT

CEREMONIAL ITEMS

3. Subject: Recognition of the Community Development Department (Planning, Building, Housing, and Code Enforcement Divisions)
Recommended Action: Recognize the Community Development Department (Planning, Building, Housing, and Code Enforcement Divisions) A - Proclamation

POSTPONEMENTS AND ORDERS OF THE DAY

ORAL COMMUNICATIONS
This portion of the meeting is reserved for persons wishing to address the Council on any matter within the jurisdiction of the Council and not on the agenda for discussion. Oral Communications shall be limited to 30 minutes. Additional speakers wishing to comment on non-agenda items may be given time to speak at the end of the agenda, after the City Manager's report. Individual speakers are limited to three (3) minutes. As necessary, the Chair may further limit the time allowed to individual speakers, or reschedule remaining comments to the end of the meeting on a first come first heard basis, with priority given to students. In most cases, State law will prohibit the Council from discussing or making any decisions with respect to a matter not listed on the agenda. A councilmember may, however, briefly respond to statements made or questions posed by speakers. A councilmember may also ask a question for clarification, provide a reference for factual information, request staff to report back concerning a matter, or request that an item be added to a future City Council agenda in response to public comment.

CONSENT CALENDAR (Items 4-8)
Items appearing on the Consent Calendar are considered routine City business and may be approved by one motion. Typical items may include meeting minutes, awards of contracts, the ratification of accounts payable, and second readings of ordinances. Any member of the Council may request to have an item removed from the Consent Calendar based on the rules set forth in the City Council Procedures Manual. Members of the public may provide input on one or more consent calendar items when the Mayor asks for public comments on the Consent Calendar.

4. Subject: Approval of September 15, 2026 City Council meeting minutes Recommended Action: Approve the September 15, 2026 City Council meeting minutes A - Draft Minutes

5. Subject: Receipt of Monthly Treasurer's Investment Report for August 2026.

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

Staff Report
A – Chandler Investment Report August 2026

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6. Subject: Receipt of Monthly Treasurer's Report for August 2026.

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

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

7. Subject: Approval of a resolution increasing the employer's contribution for medical and hospitalization insurance consistent with the Public Employees’ Medical and Hospital Care Act (“PEMHCA” or the “Act”) for retired annuitants hired with the City of Cupertino prior to August 2004.

Recommended Action: Adopt Resolution No. 26-101 increasing the employer's contribution for medical and hospitalization insurance for retired annuitants hired with the City of Cupertino prior to August 2004.

Staff Report
A - Draft Resolution

8. Subject: Approval of a Resolution Authorizing Submittal of An Individual Grant Application for $80,000 for the Rubberized Pavement Grant Program.

Recommended Action: Adopt Resolution No. 26-102 Authorizing Submittal of An Individual Grant Application for $80,000 from the Rubberized Pavement Grant Program.

Staff Report
A – Draft Resolution

PUBLIC HEARINGS
Government Code Section 65103.5 limits the distribution of copyrighted material associated with the review of development projects. Members of the public wishing to view plans that cannot otherwise be distributed under Govt. Code Section 65103.5 may make an appointment with the Planning Division to view them at City Hall by sending an email to [email protected]. Plans will also be made available digitally during the hearing to consider the proposal.

9. Subject: Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing and approval of conduit financing for The RISE Block 5 Apartments Project

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Recommended Action: 1. Conduct the public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended (the “Code”).

2. Adopt Resolution No. 26-103 approving the issuance of Bonds by the California Municipal Finance Authority (CMFA) for the benefit of Eden Housing, Inc., a California nonprofit public benefit corporation (the “Developer”), on behalf of a limited partnership or another ownership entity to be formed by the Developer or an affiliate of the Developer (such limited partnership or other ownership entity is referred to herein as the “Borrower”), to provide financing for the Project. Such adoption is solely for the purpose of satisfying the requirements of TEFRA and the California Government Code Section 6500 (and following). The resolution will also authorize the Mayor or designee to execute the Joint Exercise of Powers Agreement with the CMFA.

Staff Report
A - Draft Resolution
B - CMFA JPA Agreement - City of Cupertino
C - TEFRA Info Memo

10. Subject: Introduction of Municipal Code Amendments to Chapter 19.08 (Definitions) to revise definitions of “attic” and “garages” and establish a new definition of “square footage” to align with state law, and associated Environmental Review. (Applicant:

City of Cupertino; Location: City-wide) (Continued from September 15, 2026) Recommended Action: Introduce and conduct the first reading of Ordinance No. 26-2286: “An Ordinance of the City Council of the City of Cupertino to Amend Municipal Code Chapter (Definitions)”.

Staff Report
A - Draft Ordinance (Clean)
B - Draft Ordinance (Redlined)

11. Subject: Consider a Use Permit, Tentative Map, Architectural and Site Approval, and Tree Removal Permit for the construction of a 35-unit townhome development to replace an existing strip mall (Coach House). The project utilizes Senate Bill 330 (SB 330) and provisions of State Density Bonus law. (Application No(s): U-2025-005, ASA-2025-014, TM-2025-006, TR-2025-030; Applicant: Joshua Vrotsos, Dividend Homes; Location: 1655 S. De Anza Boulevard and 7357 Prospect Road; APNs: 366 10 061 and 366 10 126)

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Recommended Action: 1. Find the project statutorily exempt from the California Environmental Quality Act (CEQA); and

2. Make the required findings of No Net Loss (SB 166); and

3. Approve the project by:
a. Adopting Resolution No. 26-104 approving Use Permit (U-2025-005) (Attachment A);
b. Adopting Resolution No. 26-105 approving Architectural & Site Approval Permit (ASA-2025-014) (Attachment B);
c. Adopting Resolution No. 26-106 approving Vesting Tentative Map (TM-2025-006) (Attachment C); and
d. Adopting Resolution No. 26-107 approving Tree Removal Permit (TR-2025-030) (Attachment D).

Staff Report
A - Draft Resolution U-2025-005
B - Draft Resolution ASA-2025-014
C - Draft Resolution TM-2025-006
D - Draft Resolution TR-2025-030
E - Summary of Relevant State Law
F - Site Plan and Renderings
G - Arborist Report and Peer Review
H - Summary of Density Bonus Waivers
I - CEQA Exemption Memorandum
J - Phase I Environmental Site Assessment
K - Public Comments
L - Transportation Analysis
ACTION CALENDAR - None

ITEMS REMOVED FROM THE CONSENT CALENDAR

CITY MANAGER REPORT

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

ORAL COMMUNICATIONS - CONTINUED

COUNCILMEMBER REPORTS

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

FUTURE AGENDA ITEMS

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

14. Subject: Upcoming Draft Agenda Items Report
A - Upcoming Draft Agenda Items Report

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

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

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

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

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

Any writings or documents provided to a majority of the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk’s Office located at City Hall, 10300 Torre Avenue, Cupertino, California 95014, during normal business hours; and in Council packet archives linked from the agenda/minutes page on the City web site.

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

2.08.100 written communications sent to the City Council, Commissioners or staff concerning a matter

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

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THE CITY COUNCIL AND STAFF

CITY COUNCIL
Cupertino is a General Law city organized under and subject to statutes of the State of California. It is governed by the five‐member City Council with the Mayor as the presiding officer. City Council members are elected at‐large to four‐year, overlapping terms. Each November a mayor and a vice‐mayor are selected by the City Council for a one‐ year term.

The City Council receives advice and assistance from eleven advisory bodies, which are appointed by the Council.

These are the Audit Committee, Bicycle Pedestrian Commission, Fine Arts Commission, Housing Commission, Library Commission, Parks and Recreation Commission, Planning Commission, Public Safety Commission, Sustainability Commission, Teen Commission, and Technology, Information, and Communications Commission.

Council members also serve on a variety of regional bodies, including:
∙ Association of Bay Area Governments
∙ League of California Cities
∙ Santa Clara County (SCC) Cities Association
∙ SCC Emergency Preparedness Council
∙ SCC Library District
∙ SCC Emergency Preparedness Commission
∙ Santa Clara Valley Water Commission and Water District ∙ SCC Transportation Authoritym
∙ West Valley Mayors and Managers
STAFF
The City Manager and the City Attorney are appointed by the Council. The City Manager is responsible for interpreting and carrying out Council policies and direction, and as the chief administrative officer, the City Manager coordinates the many activities of the city and appoints the professional and technical staff. The City Attorney is the advisor to the City Council as a whole.

TYPES OF COUNCIL ACTIONS

ORDINANCES
Ordinances are the means by which the City enacts its local laws. Unless an urgent situation exists, ordinances will first be presented at a Council meeting as a “first reading." At a subsequent Council meeting, there will be a “second reading and adoption." Ordinances go into effect after a waiting period of thirty days, in most cases, during which time the summary of the ordinance is published in a local newspaper approved for this purpose.

RESOLUTIONS
Resolutions and minute orders are the means by which the City Council formally adopts policies or approves specific actions. These go into effect when adopted.

APPEALS
Any interested person, including a Council member, may appeal a Planning Commission or Director of Community Development decision to the City Council. An appeal must be submitted in writing to the City Clerk within 14 calendar days of the mailing of the notice of the decision.

RECONSIDERATION
Prior to seeking judicial review of any adjudicatory (quasi‐judicial) decision, interested persons must file a petition for reconsideration within ten calendar days of the date the City Clerk mails notice of the City’s decision.

Reconsideration petitions must comply with the requirements of Cupertino Municipal Code §2.08.096. Contact the City Clerk’s office for more information or go to www.http://www.cupertino.org/index.aspx?page=125 for a reconsideration petition form.

COMMUNICATING WITH COUNCIL
(408) 777‐1389
(408) 777‐3192
(408) 777‐1316
(408) 777-1326
(408) 777‐3138
(408) 777‐3139
All Council members:

Kitty Moore
Liang Chao
J.R. Fruen
Sheila Mohan
R "Ray" Wang
Executive Assistant
City Hall
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
www.cupertino.gov (408) 777‐CITY
Please note: the City Council discourages submission of written materials on the day of the meeting as this does not provide enough time to give the materials fair evaluation. If you must provide written materials on the day of the meeting, as least one copy must be given to the City Clerk for the permanent record, and ten copies are preferred.

NEWS AND NOTICES FROM CITY HALL

OPTIONS TO VIEW AND PARTICIPATE REMOTELY
The City Channel broadcasts City Council meetings, agenda previews, public service announcements, and other programs of community interest, on Comcast Channel 24 or Channel 26 and U-verse Channel 99.

USEFUL TELEPHONE NUMBERS
City of Cupertino (City Hall) General Information and Comments (408) 777‐CITY Fire (Emergency) Santa Clara County Fire Dept.  dispatch     911 Fire (Non‐Emergency ) Santa Clara County Fire Dept. (408) 378‐4010 Garbage         Recology South Bay (408) 725‐4020
Gas & Electricity Pacific Gas & Electric (PG&E) 1‐800‐743‐5000 Recreation & Community Quinlan Community Center (408) 777‐3120 Services
Police (Emergency) Santa Clara County Sheriff dispatch 911 Police (Non‐Emergency) Santa Clara County Sheriff (408) 868‐6600 Public Health          Santa Clara County Public Health (408) 732‐3720 Sanitary Sewers        Cupertino Sanitary District         (408) 253‐7071 Water San Jose Water        (408) 279‐7900
California Water        (650) 917‐0152
Tuesday 6:45 PM (Live)
Saturday 9:00 AM
Wednesday 10:00 AM & 7:00 PM
Sunday 12:00 PM
Friday 10:00 AM & 7:00 PM
Monday 10:00 AM & 7:00 PM
City Council videos are available on demand at www.cupertino.gov. Livestream can be watched online at www.Cupertino.gov/youtube and www.Cupertino.gov/webcast. To participate remotely, view the "Options to Observe" section in the posted City Council Agenda.

AUDIO
Tune into Radio Cupertino, 1670 AM, for meeting announcements, public service messages, and emergency announcements.

NEWS, COMMUNITY INFORMATION, AND E-NOTIFICATION SIGN-UP CAN ALSO BE FOUND AT https://www.facebook.com/cityofcupertino
https://twitter.com/cityofcupertino
https://www.instagram.com/cityofcupertino
https://www.cupertino.gov/notify

CITY OF CUPERTINO
Agenda Item
26-15487 Agenda Date: 10/6/2026
Agenda #: 1.

Subject: Subject: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (California Government Code sections 54954.5 and 54956.9) Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (1 case potential case)
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CITY OF CUPERTINO
Agenda Item
26-15499 Agenda Date: 10/6/2026
Agenda #: 2.

Subject: CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(California Government Code Sections 54954.5 and 54956.8)

1. Property: 10480 Finch Avenue, Cupertino, CA

2. Agency Negotiators: Tina Kapoor, City Manager and Floy Andrews, Interim City Attorney

3. Negotiating Parties: City of Cupertino and Cupertino Union School District

4. Under Negotiation: Price and terms of payment
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CITY OF CUPERTINO
Agenda Item
26-14867 Agenda Date: 10/6/2026
Agenda #: 3.

Subject: Recognition of the Community Development Department (Planning, Building, Housing, and Code Enforcement Divisions)
Recognize the Community Development Department (Planning, Building, Housing, and Code Enforcement Divisions)
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Proclamation
WHEREAS, Community development professionals such as planners, plan check engineers, inspectors, permit technicians, code officers, and administrative support, work to improve the well-being of all people by applying professional expertise and data-driven insights to guide development that is safe, resilient, equitable, and prosperous for everyone; and
WHEREAS, Community development plays a vital role in addressing the growing housing crisis, shaping transportation systems, preserving and developing diverse housing options, promoting land use that supports sustainability, and helping communities navigate environmental, economic, and social challenges; and
WHEREAS, Effective community development depends on the long-term, comprehensive vision of elected officials, community partners, and the public working together to ensure that growth and change enhance quality of life and opportunity for all residents; and
WHEREAS, Community development not only guides Cupertino’s physical development but also helps preserve our cultural heritage, promote public health, protect natural resources, and enhance overall community well-being; and
WHEREAS, The City of Cupertino is committed to these objectives, supporting equitable housing, resilient infrastructure, vibrant public spaces, sustainable land use, and inclusive engagement, and values the importance of highlighting the Community Development Department’s contributions each October in celebration of National Community Planning Month.

THEREFORE, I, Mayor Kitty Moore, and the Cupertino City Council do hereby proclaim and acknowledge
The Community Development Department
and encourage all residents to recognize the importance of community development in shaping a sustainable, inclusive, and thriving Cupertino for generations to come.

IN WITNESS THEREOF, I have hereunto set my hand and caused the seal of the City of Cupertino to be affixed this Tuesday, October 6, 2026.
____________________________
The Honorable Kitty Moore
Mayor, City of Cupertino
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CITY OF CUPERTINO
Agenda Item
25-14685 Agenda Date: 10/6/2026
Agenda #: 4.

Subject: Approval of September 15, 2026 City Council meeting minutes Approve the September 15, 2026 City Council meeting minutes CITY OF CUPERTINO Page 1 of 1 Printed on 9/30/2026
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DRAFT MINUTES

CUPERTINO CITY COUNCIL
Tuesday, September 15, 2026
At 5:35 p.m., Mayor Moore called the Regular City Council Meeting to order in City Hall Conference Room C, 10300 Torre Avenue, Cupertino, CA 95014 and via teleconference.

ROLL CALL

Present: Mayor Kitty Moore, Vice Mayor Liang Chao (arrived at 5:41 p.m.) and Councilmembers J.R. Fruen, Sheila Mohan, and R “Ray” Wang.

In open session prior to closed session, Mayor Moore opened the public comment period regarding any closed session items on the agenda and the following members of the public spoke.

Santosh Rao (Item 2)
Mayor Moore closed the public comment period.

At 5:41 p.m. Vice Mayor Chao arrived at the meeting.

CLOSED SESSION

1. Subject: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (California Government Code Sections 54954.5 and 54956.9) Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (1 potential case)
Council met with legal counsel on the anticipated litigation.

2. Subject: CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(California Government Code Sections 54954.5 and 54956.8)

1. Property: 10480 Finch Avenue, Cupertino, CA

2. Agency Negotiators: Tina Kapoor, City Manager and Floy Andrews, Interim City Attorney
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3. Negotiating Parties: City of Cupertino and Cupertino Union School District

4. Under Negotiation: Price and terms of payment
At 6:19 p.m., Mayor Moore recused herself from this item and Vice Mayor Chao resumed chairing the meeting.

Council met with real property negotiators.

RECESS
At 6:28 p.m., Vice Mayor Chao recessed the meeting.

OPEN SESSION
At 6:47 p.m., Mayor Moore reconvened the Regular City Council Meeting and led the Pledge of Allegiance in the Cupertino Community Hall Council Chamber, 10350 Torre Avenue and via teleconference.

ROLL CALL

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

CLOSED SESSION REPORT
Interim City Attorney Floy Andrews announced that no reportable action was taken during the closed session held at 5:30 p.m. on September 15, 2026.

CEREMONIAL ITEMS

3. Subject: Recognition of Cupertino High School students on their achievements in the 2026 Future Business Leaders of America (FBLA) National Leadership Conference.

Recommended Action: Present Certificates Recognizing Cupertino High School students on their achievements in the 2026 Future Business Leaders of America (FBLA) National Leadership Conference.

Mayor Moore presented Certificates recognizing Cupertino High School students on their achievements in the 2026 Future Business Leaders of America (FBLA) National Leadership Conference.

POSTPONEMENTS AND ORDERS OF THE DAY
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4. Subject: Introduction of an Ordinance Amending Cupertino Municipal Code Chapter

19.08 (Definitions) to revise definitions of “attic” and “garages” and establish a new definition of “square footage” to align with state law, and associated Environmental Review. (Applicant: City of Cupertino; Location: City-wide) (Postponed to October 6, 2026)
Recommended Action: Continue this item to October 6, 2026.

MOTION: Fruen moved and Wang seconded to postpone Item No. 4 to October 6, 2026.

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:

O. Peper discussed the BMR application deadline.

Edward Hirshfield discussed Cupertino’s cultural center development and facilities.

Mark Fantozzi discussed statements made by a commissioner and disputed the statements.

Minna Xu and Shannon Bee discussed political signs and public safety.

Steven Scharf discussed political signs and crime.

Rhoda Fry discussed the upcoming council candidate forum at Quinlan Community Center and political signs.

Jennifer Griffin (virtually) discussed the Coach House housing development project and retail preservation.

Michael Wang (virtually) discussed political signs.

CONSENT CALENDAR (Items 5-13)
Mayor Moore opened the public comment period and, seeing no one, closed the public comment period.
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MOTION: Wang moved and Mohan seconded to approve Consent Calendar Item Nos. 5-13.

The motion passed with the following vote: Ayes: Moore, Chao, Fruen, Mohan, and Wang.

Noes: None. Abstain: None. Absent: None.

5. Subject: Approval of September 1, 2026 City Council Regular Meeting Minutes.

Recommended Action: Approve the September 1, 2026 City Council Regular Meeting Minutes.

6. Subject: Approval of September 1, 2026 City Council Special Meeting Closed Session Minutes.

Recommended Action: Approve the September 1, 2026 City Council Special Meeting Closed Session Minutes.

7. Subject: Ratifying Accounts Payable for the periods ending July 3, 2026, July 17, 2026, and July 31, 2026
Recommended Action: A. Adopt Resolution No. 26-093 ratifying Accounts Payable for the Period ending July 3, 2026;
B. Adopt Resolution No. 26-094 ratifying Accounts Payable for the Period ending July 17, 2026; and
C. Adopt Resolution No. 26-095 ratifying Accounts Payable for the Period ending July 31, 2026.

Written communications for this item included a desk item containing Attachment G, Corrected AP Payment Register for the Period Ending July 3, 2026, and Attachment H, Corrected AP Payment Register for the Period Ending July 17, 2026.

8. Subject: Ratifying Accounts Payable for the periods ending August 14, 2026, and August 28, 2026
Recommended Action: A. Adopt Resolution No. 26-096 ratifying Accounts Payable for the Period ending August 14, 2026; and
B. Adopt Resolution No. 26-097 ratifying Accounts Payable for the Period ending August 28, 2026.

9. Subject: Second reading and enactment of an ordinance amending Municipal Code Chapter 2.88 Audit Committee Duties, Powers, and Responsibilities and Related Municipal Code Updates
Recommended Action: Conduct the second reading and enact Ordinance No. 26-2285:
"AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING MUNICIPAL CODE CHAPTER 2.88 TO RENAME THE AUDIT

COMMITTEE AS THE AUDIT AND FINANCE COMMITTEE, UPDATE ITS DUTIES,

POWERS, AND RESPONSIBILITIES, AND UPDATE THE DIRECTOR OF FINANCE TITLE" to:
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1. Rename the Audit Committee as the "Audit and Finance Committee";

2. Modify Section 2.88.100(g) to read: “To review the City’s internal controls and internal audit reports.”

3. Add Section 2.88.100(i): “To review the use of emerging technologies such as artificial intelligence in the City’s financial reporting, internal controls over financial reporting, risk management, and compliance.”

4. Update Section 2.88.110 referencing Director of Administrative Services to Director of Finance

10. Subject: Receipt of Grants Management Internal Controls Review Final Report Recommended Action: Receive the Grants Management Internal Controls Review Final Report

11. Subject: Adoption of the Artificial Intelligence (AI) City Council Policy Recommended Action: Adopt Resolution No. 26-098 adopting the Artificial Intelligence (AI) City Council Policy

12. Subject: Appointment of Mayor Kitty Moore and Councilmember R “Ray” Wang to an ad-hoc Council subcommittee to serve on a committee to evaluate proposals for the City Lobbyist for the 2027-2028 legislative session.

Recommended Action: Approve the appointment of Mayor Kitty Moore and Councilmember R “Ray” Wang to an ad-hoc Council subcommittee to serve on a committee to evaluate proposals for the City Lobbyist for the 2027-2028 legislative session.

13. Subject: Approval of response to the 2025-2026 Civil Grand Jury of Santa Clara County Report entitled Pothole Damage: Improving claims processes within Santa Clara County (“Civil Grand Jury Report”)
Recommended Action: Approve the City of Cupertino’s response to that Civil Grand Jury Report.

PUBLIC HEARINGS – None

ACTION CALENDAR

14. Subject: Law Enforcement Services Agreement with the County of Santa Clara.

Recommended Action: Receive an update regarding the City's law enforcement services agreement with the County of Santa Clara, discuss the findings of the City's independent financial review, receive a proposed draft long-term agreement from the County of Santa Clara, and provide direction to staff as appropriate.

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September 10, 2026, Letter from Sheriff Jonsen; Attachment F, Draft Resolution Authorizing the City Manager to Execute a Law Enforcement Services Agreement with the County of Santa Clara; and a staff presentation.

Director of Finance Jonathan Orozco gave a presentation, and Senior Assistant City Attorney Michael Woo was also present.

Councilmembers asked questions and made comments.

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

Councilmembers asked questions and made comments.

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

1. Authorize the City Manager to negotiate and execute a long-term agreement for law enforcement services, with terms preserving the City’s rights under California Government Code Section 51350 to ensure appropriate costs to the City. Further authorize the City Manager to make reasonable efforts to address the service gap between October 1 and the anticipated October 6 Board of Supervisors action on the contract.; and

2. Adopt desk item Resolution No. 26-100 Authorizing the City Manager to Execute a Law Enforcement Services Agreement with the County of Santa Clara and Expressly Reserving the City's Rights Regarding the County's Cost Allocation Methodology.

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

At 7:54 p.m., Mayor Moore recessed the meeting. The meeting reconvened at 8:02 p.m. with all Councilmembers present.

15. Subject: Receipt of City Council Policy Review Final Report and Internal Auditor Recommendations for Council Policy Updates
Recommended Action: Receive the City Council Policy Review Final Report and provide direction on the recommendations.

Director of Finance Jonathan Orozco introduced the item, and Baker Tilly Managing Principal Colleen Rozillis and Baker Tilly Director Annie Rose Faber presented the item.

Councilmembers asked questions and made comments.
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Mayor Moore opened the public comment period and, seeing no one, closed the public comment period.

Councilmembers asked questions and made comments.

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

1. Receive the City Council Policy Review Final Report; and

2. Add the recommendations in the report including the recommendations from the Audit Committee for staff to bring back through the City Work Program for consideration in the New Year; and

3. That no further work by the Internal Auditor be conducted.

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

16. Subject: Acceptance of FY 2026-27 Internal Audit Work Program; Fourth Amendment to agreement with Baker Tilly; and, if approved, related budget modification Recommended Action: 1. Accept the FY 2026-27 Internal Audit Work Program;

2. If accepted, authorize the City Manager to execute a Fourth Amendment with Baker Tilly to extend the agreement through June 30, 2027; and

3. Adopt Resolution No. 26-099 approving Budget Modification No. 2627-449, increasing appropriations, as necessary to fund the accepted FY 2026-27 Internal Audit Work Program, by an amount to be determined by the City Council.

Written communications for this item included a presentation by Baker Tilly.

Director of Finance Jonathan Orozco introduced the item, and Acting Finance Manager Richard Wong and Baker Tilly Director Chelsea Ritchie presented the item.

Councilmembers asked questions and made comments.

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

Councilmembers asked questions and made comments.

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

1. Accept the FY 2026-27 Internal Audit Work Program with the following projects:
• Approve the required projects of $30,000 (Recommendation Validations and Program Management), and
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• Approve the first two items in tier one (Code Enforcement – 311 Response Time Review and Permitting Efficiency Study); and

2. Authorize the City Manager to execute a Fourth Amendment with Baker Tilly to extend the agreement through June 30, 2027; and

The amended motion 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

17. 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

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

FUTURE AGENDA ITEMS

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

ADJOURNMENT
At 9:10 p.m., Mayor Kitty Moore adjourned the Regular City Council Meeting.

Minutes prepared by:
__________________________
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Lauren Sapudar, City Clerk
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CITY OF CUPERTINO
Agenda Item
25-14432 Agenda Date: 10/6/2026
Agenda #: 5.

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

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

CITY OF CUPERTINO Page 1 of 1 Printed on 9/30/2026
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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: October 6, 2026
Subject
Receipt of Monthly Treasurer's Investment Report for August 2026 Recommended Action
Receive the Monthly Treasurer's Investment Report for August 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. The report provides information on the City’s investment portfolio, including portfolio performance, holdings, market conditions, and compliance with the City’s Investment Policy.

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
Reviewed by: Kirsten Squarcia, Deputy City Manager
Approved for Submission by: Tina Kapoor, City Manager
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2 Attachments:

A – Chandler Investment Report August 2026
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INVESTMENT REPORT
City of Cupertino | As of August 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. 28 CC 10-06-2026 Searchable Packet
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TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

PORTFOLIO HOLDINGS

TRANSACTIONS
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ECONOMIC UPDATE
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▪ Renewed U.S. strikes near Iran’s Strait of Hormuz pushed oil prices higher heading into September, underscoring how the ongoing U.S.–Iran conflict continues to influence global energy markets. Consequently, inflation has remained more persistent than policymakers had hoped.
▪ Following a summer of softer labor-market momentum, August payrolls staged a clear rebound, comfortably surpassing consensus expectations.
▪ The Federal Open Market Committee is scheduled to meet next on September 15-16, 2026. Although the FOMC held the Fed’s benchmark rate at 3.50% to 3.75% following the July 28-29 meeting, market participants inferred a hawkish tone from Chair Kevin Warsh during his August 28th speech at the Jackson Hole Economic Symposium, where he emphasized that the Fed “will have work to do” if price pressures remain elevated. ▪ The July FOMC meeting minutes highlighted concerns that successive supply shocks related to tariffs and the U.S.– Iran conflict have driven recent inflationary pressure. ▪ The Chandler team continues to expect the Federal Reserve to hold the federal funds rate steady through the remainder of 2026, provided that both realized and market-based measures of inflation remain contained. ▪ The U.S. Treasury curve bear-flattened in August as short-term yields rose on hawkish signals from Fed Chair Kevin Warsh and renewed Middle East tensions, while long-end yields were capped by Treasury Secretary Scott Bessent’s surprise expansion of long-duration buybacks.
▪ At August month-end, the 2-year Treasury yield had advanced to 4.34%, the 5-year to 4.50%, and the 10-year to

4.75%. The 2s–10s spread narrowed to 41 basis points, down from 45 basis points in July and 69 basis points at year-end 2025. The 3-month bill to 10-year spread also tightened, falling to 92 basis points from 97 basis points the prior month.

ECONOMIC UPDATE
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Source: U.S. Department of Labor
▪ Nonfarm payrolls advanced in August by 162,000, well above the median consensus estimate of 55,000 and a marked acceleration from July.
▪ The Bureau of Labor Statistics revised June's initial estimate of 20,000 up to 31,000, an increase of 11,000, and revised July's initial estimate of a 23,000 decline up to a gain of 21,000, a swing of 44,000, for a net two-month revision of positive 55,000 jobs. Food services, local government education, and manufacturing led job gains, while the information sector continued to shed positions, down 23,000 for the month. ▪ The unemployment rate held steady at 4.1%, leaving 7.0 million people unemployed, while the underemployment rate fell to 7.7% in August.

EMPLOYMENT
Source: U.S. Department of Labor
-400
-200
0 200
400
600
800
1,000
MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's): 162k
3-month average (000's): 1k

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%
Unemployment Rate
Unemployment Rate (U3): 4.1%
Underemployment Rate (U6): 7.7%
Rate (%)
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▪ Job openings held at 7.27 million in July, according to the Bureau of Labor Statistics, as June's estimate was revised down to 7.18 million.
▪ Durable goods manufacturing recorded the largest increase in openings, up 76,000 to a 5.2% opening rate, an ancillary but encouraging signal for a sector that has otherwise shed positions through much of the past two years.

JOB OPENINGS & LABOR TURNOVER SURVEY
Source: U.S. Department of Labor
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
U.S. Job Openings By Industry Total: 7,271k
Historical Average: 5,983k In Thousands (000's)
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Source: Bloomberg Indices
▪ West Texas Intermediate crude settled at $91.48 per barrel on September 4, while Brent crude finished at $92.68, both climbing for a second straight week as the conflict among the United States, Israel, and Iran disrupted shipping through the Strait of Hormuz, with vessel transits falling to roughly a quarter of their pace from ten days earlier.
▪ The disruption has proven more protracted than markets initially priced, and further escalation could push prices higher still, though a diplomatic resolution or increased output elsewhere could just as quickly reverse the recent advance.
▪ AAA’s national average price for regular gasoline was unchanged at $4.10 per gallon at the end of August, while diesel prices rose more sharply to $5.63 per gallon.

ENERGY MARKETS
Source: Bloomberg Indices
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate: $85.76
Dated Brent: $89.71
Price Per Barrel (WTI Spot)

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: $5.63
Average Retail Price US Gas: $4.10
($) Per Gallon
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Source: U.S. Department of Commerce
▪ Headline Consumer Price Index (CPI) inflation rose 0.1% in July and 3.4% from a year earlier. Core CPI, which excludes food and energy, increased 0.2% for the month and remained unchanged at 2.5% year over year. Energy prices fell 1.5%, reflecting a 2.9% decline in gasoline prices. ▪ The Personal Consumption Expenditures Price Index, the gauge the Federal Reserve references against its 2% target, told a firmer story, with the headline measure up 0.2% for the month and 3.7% year-over-year, and core also up 0.2% but running 3.3% annually.
▪ Inflation remains well above the Federal Reserve's longer-run objective, keeping the debate over its path unresolved. Policymakers have indicated that they are not prepared to declare victory, particularly given the risk that renewed increases in oil prices could elevate headline measures.

INFLATION
Source: U.S. Department of Labor

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: 3.4%
Core CPI YOY % Change: 2.5%
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change: 3.7%
PCE Core Deflator YOY % Change: 3.3%
Fed Target: 2%
YOY (%) Change
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Source: The Conference Board
All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09) ▪ July's Advance Retail Sales report fell -0.6% month-over-month, well below the 0.1% increase economists expected, with the control group down -0.4%. Autos and gasoline station sales drove most of the shortfall:
excluding both, sales were down a more modest -0.2%, with the remainder tied to Amazon's Prime Day, held in June rather than July this year, pulling online spending forward a month earlier. ▪ The July decline followed several strong months and left retail sales up 5.0% year-over-year. ▪ The Conference Board's Consumer Confidence Index eased to 89.4 in August from 90.2 in July. The gap between respondents calling jobs plentiful and those calling them hard to get widened to 7.5%, suggesting households still view the labor market as reasonably healthy even as broader sentiment softens.

CONSUMER
Source: U.S. Department of Commerce

0.0%

5.0%

10.0%

15.0%

20.0%
Retail Sales YOY % Change
Jul-26: 5%
YOY (%) Change
0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Consumer Confidence: 89.4
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Source: Federal Reserve Bank of Chicago
▪ The Conference Board’s Leading Economic Index edged up 0.2% in July, following a 0.1% decline in June. The increase pushed the index’s six-month growth rate into positive territory for the first time in more than four years. ▪ The Chicago Fed National Activity Index fell to -0.08 in July from +0.06 in June, lowering its three-month moving average to -0.04.
▪ Taken together, the two indicators suggest that economic growth remains near historically average levels, with neither index showing a definitive move above or below trend.

LEADING INDICATORS OF ECONOMIC ACTIVITY
Source: The Conference Board
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
Jul-26: -1.1%
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
Jul-26: -0.04
3 Month Average
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Source: S&P
▪ Housing data weakened in July, with starts falling 12.4% month over month to a seasonally adjusted annual rate of

1.239 million—well below economists’ forecast of 1.35 million. Single-family starts declined 9.9% to 808,000 units, while multifamily starts fell 16.8% to 431,000 units. In contrast, building permits rose 5.0%, suggesting builders continue to plan future projects.
▪ The S&P Cotality Case-Shiller 20-City Composite Home Price Index posted a 2.10% year-over-year gain in June, an acceleration from May's unrevised 1.6% pace, suggesting renewed firmness in home prices even as transaction volumes soften elsewhere.
▪ Freddie Mac’s average 30-year fixed mortgage rate climbed to 6.70% in late July, following a modest pullback to

6.49% in June, adding to affordability pressures for prospective homebuyers.

HOUSING
Source: U.S. Department of Commerce
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: 431k
Single Family Housing Starts: 808k
-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
Jun-26: 2.1%
YOY (%) Change
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▪ The Institute for Supply Management’s (ISM) Manufacturing Index eased to 54.6% in August from 55.6% in July, an eighth consecutive month of expansion.
▪ The Services Index climbed to 55.4% from 54.1%, for a twenty-sixth consecutive month of expansion. The services prices component jumped to 72.6%, the highest reading since August 2022, while services employment contracted for a second straight month at 47.8%.
▪ ISM surveys above 50% signal expansion, while readings below 50% signal contraction.

PURCHASING MANAGERS INDEX (PMI)
Source: Institute of Supply Management
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing: 54.6%
ISM Services: 55.4%

EXPANDING

CONTRACTING
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Source: U.S. Department of Commerce
▪ The Bureau of Economic Analysis's second estimate of second-quarter gross domestic product held real growth at an annualized 1.5%, essentially unchanged from the July advance estimate, with the agency describing the revision as less than one-tenth of a percentage point.
▪ Consumer spending and private investment—via AI related infrastructure capital expenditures—were the leading components, while government spending and rising imports subtracted from the total. A third estimate is due in September. Momentum already looks considerably attenuated versus earlier in the year.

GROSS DOMESTIC PRODUCT (GDP)
Source: U.S. Department of Commerce
Components of GDP Q3 2025 Q4 2025 Q1 2026 Q2 2026

2.3% 1.3% 0.4% 2.3%

0.0% 0.4% 1.4% 0.5%

1.6% -0.2% -0.4% -1.1%

0.2% -1.2% 0.6% -0.3%

0.2% 0.2% 0.2% 0.1%
Total 4.4% 0.5% 2.1% 1.5%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
State and Local (Consumption and Gross
Investment) -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: 1.5%
GDP YOY % Change: 2.1%
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Source: Bloomberg
▪ The Federal Reserve held its target range at 3.50% to 3.75% at the July 28 to 29 FOMC meeting, with three regional bank presidents, Beth Hammack, Neel Kashkari, and Lorie Logan, dissenting in favor of a quarter point increase, citing inflation that has stayed elevated for a protracted stretch. ▪ Federal Reserve Chair Kevin Warsh, sworn in earlier this year, reiterated his intention to wind down forward guidance at the Jackson Hole Economic Symposium, arguing markets should focus on incoming data rather than anticipated rhetoric.
▪ The Committee made no change to its balance sheet policy, continuing to reinvest holdings into treasury securities.
▪ Minutes released August 19 showed the committee discussed artificial intelligence-related effects on labor productivity and continued Middle East geopolitical risk.

FEDERAL RESERVE
Source: Federal Reserve
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
Aug-26: $6.73 mm
In $ millions

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Range: 3.50% - 3.75%
Yield (%)
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Source: Bloomberg
▪ Short-term yields have climbed faster than long-term yields over the past three months, consistent with a market recalibrating the odds of near-term Federal Reserve rate cuts against still-elevated inflation. To end August, the 2- year yield advanced to 4.34%, the 5-year to 4.50%, and the 10-year yield rose to 4.75%, narrowing the spread between the two maturities to 41 basis points from July’s 45 and 69 basis points at year-end 2025. The threemonth bill to ten-year spread also narrowed to 92 basis points from 97 the prior month. ▪ The two-year to ten-year spread has averaged near 95 basis points since 2005, underscoring how compressed the relationship between short and long maturities remains relative to that of the longer run norm.

BOND YIELDS
Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year: 4.34%
5-Year: 4.50%
10-Year: 4.75%
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Aug-26
May-26
Aug-25
Yield (%)
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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 44
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of August 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 4.4 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 7.7 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
The Statement of Compliance reflects Chandler's assessment of compliance with the applicable investment policy for the assets Chandler directly manages. The report may also present assets reported to Chandler by clients, custodians, or other third parties. Chandler includes those assets in the assessment but has no discretionary authority over them, does not independently verify the information provided, and assumes no responsibility for the accuracy or completeness of that information. Questions regarding this report should be directed to the designated investment professional. 17 45
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of August 31, 2026 Rules Name Limit Actual Compliance
Status Notes

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 27.5 Compliant
Max % Issuer (MV) 5.0 1.4 Compliant
Max Maturity (Years) 5 4 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) 5 1 Compliant

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

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.8 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) 5 2 Compliant
The Statement of Compliance reflects Chandler's assessment of compliance with the applicable investment policy for the assets Chandler directly manages. The report may also present assets reported to Chandler by clients, custodians, or other third parties. Chandler includes those assets in the assessment but has no discretionary authority over them, does not independently verify the information provided, and assumes no responsibility for the accuracy or completeness of that information. Questions regarding this report should be directed to the designated investment professional. 18 46
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STATEMENT OF COMPLIANCE
City of Cupertino | Account #10659 | As of August 31, 2026 Rules Name Limit Actual Compliance
Status Notes
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
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 46.7 Compliant
Max Maturity (Years) 5 4 Compliant
The Statement of Compliance reflects Chandler's assessment of compliance with the applicable investment policy for the assets Chandler directly manages. The report may also present assets reported to Chandler by clients, custodians, or other third parties. Chandler includes those assets in the assessment but has no discretionary authority over them, does not independently verify the information provided, and assumes no responsibility for the accuracy or completeness of that information. Questions regarding this report should be directed to the designated investment professional. 19 47
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PORTFOLIO SUMMARY
City of Cupertino | Account #10659 | As of August 31, 2026 Portfolio Characteristics Account Summary Top Issuers
Average Modified Duration 2.44
Average Coupon 3.85%
Average Purchase YTM 4.14%
Average Market YTM 4.52%
Average Credit Quality* AA+
Average Final Maturity 2.83
Average Life 2.69
End Values as of
07/31/2026
End Values as of
08/31/2026
Market Value 206,702,630.60 207,329,417.02
Accrued Interest 1,715,001.08 1,529,427.95
Total Market Value 208,417,631.68 208,858,844.97
Income Earned 721,527.44 719,871.49
Cont/WD 0.00 0.00
Par 210,394,588.49 211,208,196.00
Book Value 208,751,856.94 209,628,567.41
Cost Value 207,994,491.53 208,825,767.31
United States 46.69%
Federal Home Loan Mortgage Corp 11.37%
Farm Credit System 2.52%
International Bank for Recon and Dev 1.64%
Chase Issuance Trust 1.58%
Bank of America Corporation 1.44%
JPMorgan Chase & Co. 1.43%
Amazon.com, Inc. 1.32%
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 0.22% 0.22% 0.81% 2.21% 3.57% 4.51% 1.86% -- 2.30% Benchmark Return 0.20% 0.21% 0.59% 1.95% 3.15% 4.05% 1.51% -- 2.04% *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 48
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ISSUERS
City of Cupertino | Account #10659 | As of August 31, 2026 Issuer Investment Type % Portfolio
United States US Treasury 46.69%
Federal Home Loan Mortgage Corp Agency CMBS 11.37%
Farm Credit System Agency 2.52%
International Bank for Recon and Dev Supras 1.64%
Chase Issuance Trust ABS 1.58%
Bank of America Corporation Corporate 1.44%
JPMorgan Chase & Co. Corporate 1.43%
Amazon.com, Inc. Corporate 1.32%
The Home Depot, Inc. Corporate 1.25%
Toyota Motor Corporation Corporate 1.21%
National Rural Utilities Cooperative Corporate 1.19%
Guardian Life Global Funding Corporate 1.18%
Meta Platforms, Inc. Corporate 1.14%
Deere & Company Corporate 0.97%
New York Life Insurance Company Corporate 0.96%
Northwestern Mutual Global Funding Corporate 0.95%
UnitedHealth Group Incorporated Corporate 0.92%
Federal Home Loan Banks Agency 0.91%
Simon Property Group, Inc. Corporate 0.89%
PACCAR Inc Corporate 0.85%
Chubb Limited Corporate 0.84%
Mastercard Incorporated Corporate 0.84%
State of California Muni Bonds 0.84%
American Honda Finance Corporation Corporate 0.83%
Caterpillar Inc. Corporate 0.83%
The Goldman Sachs Group, Inc. Corporate 0.81%
Bank of America Credit Card Trust ABS 0.79%
Wells Fargo & Company Money Mkt Fd 0.79%
Mercedes-Benz Auto Lease Trust ABS 0.77%
Berkshire Hathaway Inc. Corporate 0.77%
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ISSUERS
City of Cupertino | Account #10659 | As of August 31, 2026 Issuer Investment Type % Portfolio
Toyota Auto Receivables Owner Trust ABS 0.76%
Citigroup Inc. ABS 0.72%
Alphabet Inc. Corporate 0.70%
Morgan Stanley Corporate 0.70%
Realty Income Corporation Corporate 0.69%
American Express Credit Master Trust ABS 0.68%
Marsh & McLennan Companies, Inc. Corporate 0.67%
WF Card Issuance Trust ABS 0.66%
Visa Inc. Corporate 0.63%
Hyundai Motor Company Corporate 0.53%
Cargill, Incorporated Corporate 0.51%
BMW Vehicle Lease Trust ABS 0.50%
NVIDIA Corporation Corporate 0.50%
Met Tower Global Funding Corporate 0.47%
Massachusetts Mutual Life Insurance Corporate 0.47%
Pacific Life Global Funding II Corporate 0.47%
Prudential Financial, Inc. Corporate 0.47%
Hyundai Auto Lease Sec Trust ABS 0.30%
Honda Auto Receivables Owner Trust ABS 0.26%
GM Financial Securitized Term ABS 0.25%
BMW Vehicle Owner Trust ABS 0.17%
Mercedes-Benz Auto Receivables Trust ABS 0.17%
John Deere Owner Trust ABS 0.14%
WC MMF Sweep Cash 0.03%
Cash Cash 0.00%
TOTAL 100.00%
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PORTFOLIO HOLDINGS
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HOLDINGS REPORT
City of Cupertino | Account #10659 | As of August 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
89231FAD2 TAOT 2023-C A3 5.16 04/17/2028 311,387.90 11/21/2023

5.65%
310,122.89
310,920.02
100.24

4.22%
312,124.02
714.12

0.15%
1,204.00
NA/AAA
AAA

1.63 0.24
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 265,843.41 --5.64%
266,501.47
266,024.18
100.52

4.38%
267,228.45
418.70

0.13%
1,204.27
Aaa/NA
AAA

1.81 0.35
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 1,050,000.00 10/08/20254.32%
1,049,997.06
1,049,997.94

99.62 4.46%
1,046,026.80
694.75

0.50%
(3,971.14)
NA/AAA
AAA

2.07 0.83
58769FAC9 MBART 2023-2 A3 5.95
11/15/2028 352,339.62 11/29/20233.88%
359,799.31
354,589.34
100.71

4.26%
354,847.93
931.74

0.17%
258.59
NA/AAA
AAA

2.21 0.40
47800RAD5 JDOT 2024 A3 4.96 11/15/2028 284,310.93 03/25/2024

5.13%
284,177.66
284,247.52
100.34

4.25%
285,283.56
626.75

0.14%
1,036.04
Aaa/NA
AAA

2.21 0.45
05522RDH8 BACCT 2023-2 A 4.98 11/16/2026 850,000.00 01/24/2024

4.58%
858,798.83
850,652.36
100.20

4.05%
851,668.55
1,881.33

0.41%
1,016.19
Aaa/NA
AAA

0.21 0.20
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 277,849.76 05/14/20245.27%
277,816.01
277,833.11
100.47

4.37%
279,167.33
528.76

0.13%
1,334.22
NA/AAA
AAA

2.22 0.49
448970AD5 HALST 2026-A A3 3.97
12/15/2028 635,000.00 01/12/20263.98%
634,906.91
634,926.51

99.25 4.58%
630,229.88
1,120.42

0.30%
(4,696.63)
NA/AAA
AAA

2.29 1.31
36268GAD7 GMCAR 2024-1 A3 4.85
12/18/2028 524,071.11 --4.97%
523,240.07
523,658.75
100.23

4.31%
525,261.80
1,059.06

0.25%
1,603.05
Aaa/NA
AAA

2.30 0.38
161571HV9 CHAIT 241 A 4.6 01/16/2029 1,690,000.00 01/24/2024

4.61%
1,689,742.61
1,689,876.70
100.16

4.20%
1,692,734.42
3,455.11

0.82%
2,857.72
NA/AAA
AAA

2.38 0.36
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 360,090.09 06/04/20245.18%
360,035.39
360,061.20
100.43

4.37%
361,640.27
310.88

0.17%
1,579.08
Aaa/AAA
NA

2.49 0.50
58770XAD5 MBALT 2025-B A3 3.88
04/16/2029 1,045,000.00 10/16/20254.57%
1,044,828.52
1,044,870.85

99.28 4.47%
1,037,466.60
1,802.04

0.50%
(7,404.26)
NA/AAA
AAA

2.62 1.28
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 785,000.00 06/06/2024

4.93%
784,955.96
784,975.90
100.46

4.30%
788,626.70
1,720.02

0.38%
3,650.80
Aaa/AAA
NA

2.70 0.68
58770YAD3 MBALT 2026-A A3 3.93
01/15/2030 570,000.00 01/13/20263.97%
569,886.97
569,904.29

99.05 4.57%
564,564.48
995.60

0.27%
(5,339.81)
Aaa/NA
AAA

3.38 1.57
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 1,420,000.00 05/06/2025

4.28%
1,419,974.30
1,419,981.10

99.70 4.51%
1,415,766.98
2,701.16

0.68%
(4,214.12)
NA/AAA
AAA

3.62 1.53
92970QAJ4 WFCIT 2025-1 A 4.34 05/15/2030 1,365,000.00 06/03/2025

4.33%
1,364,977.34
1,364,982.98

99.77 4.52%
1,361,842.76
2,632.93

0.66%
(3,140.22)
NA/AAA
AAA

3.70 1.61
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Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
17305EHA6 CCCIT 2025-A1 A1 4.3 06/21/2030 1,500,000.00 10/09/2025

3.90%
1,515,000.00
1,510,035.53

99.57 4.55%
1,493,568.00
12,541.67

0.72%
(16,467.53)
Aaa/AAA
NA

3.80 1.70
89240QAD7 TAOT 2026-B A3 4.13 12/16/2030 760,000.00 04/14/2026

4.27%
759,839.72
759,852.26

99.05 4.69%
752,784.56
1,395.02

0.36%
(7,067.70)
Aaa/AAA
NA

4.29 1.82
89231DAD7 TAOT 2026-C A3 4.51 03/17/2031 515,000.00 07/14/2026

4.80%
514,925.12
514,926.97

99.73 4.67%
513,619.80
1,032.29

0.25%
(1,307.17)
NA/AAA
AAA

4.54 2.23
161571JA3 CHAIT 2026-1 A 4.4 05/15/2029 1,595,000.00 05/21/2026

4.45%
1,594,622.62
1,594,656.07

99.50 4.64%
1,587,071.26
3,119.11

0.77%
(7,584.82)
NA/AAA
AAA

2.70 2.49
16,184,148.75 99.79 16,121,524.14 7.78% 2.82
Total ABS 16,155,892.82 4.48% 16,166,973.60 4.44% 39,681.47 (45,449.46) 1.21 AGENCY
3130B0TY5 FEDERAL HOME LOAN BANKS 4.75
04/09/2027 1,875,000.00 04/10/20244.85%
1,870,050.00
1,874,003.66
100.34

4.18%
1,881,286.88
35,130.21

0.91%
7,283.22
Aa1/AA+
AA+

0.61 0.58
3133ERDS7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 05/06/2027 2,400,000.00 06/20/20244.55% 2,412,552.00
2,402,955.52
100.38

4.17%
2,409,160.80
36,416.67

1.16%
6,205.28
Aa1/AA+
AA+

0.68 0.66
3133EPC60 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.625 11/15/2027 2,800,000.00 11/09/20234.73% 2,789,612.00
2,796,871.51
100.41

4.27%
2,811,443.60
38,130.56

1.36%
14,572.09
Aa1/AA+
AA+

1.21 1.15
7,072,214.00 100.38 7,101,891.28 3.43% 0.87
Total Agency 7,075,000.00 4.70% 7,073,830.70 4.21% 109,677.43 28,060.58 0.83

AGENCY CMBS
3137FKUP9 FHMS K-087 A2 3.771 12/25/2028 1,924,760.08 07/01/2024

4.86%
1,841,378.88
1,882,189.06

98.11 4.60%
1,888,430.23
6,048.56

0.91%
6,241.18
Aa1/AAA
AA+

2.32 2.07
3137FL6P4 FHMS K-089 A2 3.563 01/25/2029 1,288,000.00 07/03/2024

4.70%
1,228,178.44
1,256,828.47

97.48 4.63%
1,255,595.21
3,824.29

0.61%
(1,233.26)
Aa1/AA+
AA+

2.40 2.22
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 2,000,000.00 07/03/2024

4.74%
1,801,718.75
1,896,680.57

94.73 4.65%
1,894,530.00
3,766.67

0.91%
(2,150.57)
Aa1/AA+
AAA

2.40 2.20
3137FKZZ2 FHMS K-088 A2 3.69 01/25/2029 2,550,000.00 07/17/2024

4.50%
2,465,830.08
2,505,790.06

97.80 4.63%
2,493,795.45
7,841.25

1.20%
(11,994.61)
Aaa/AA+
AA+

2.40 2.18
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 2,500,000.00 03/20/2025

4.25%
2,431,738.28
2,456,677.32

97.26 4.63%
2,431,437.50
7,302.08

1.17%
(25,239.82)
Aa1/AAA
AA+

2.56 2.30
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Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 1,953,117.68 09/19/2024

3.82%
1,884,300.80
1,913,261.24

95.93 4.65%
1,873,596.49
4,853.50

0.90%
(39,664.74)
Aa1/AA+
AAA

2.73 2.39
3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 2,200,000.00 07/17/2024

4.47%
2,039,382.82
2,109,353.77

95.18 4.66%
2,094,023.80
5,105.83

1.01%
(15,329.97)
Aa1/AA+
AAA

2.82 2.54
3137FPHK4 FHMS K-098 A2 2.425 08/25/2029 1,600,000.00 09/03/2024

4.00%
1,488,375.00
1,533,586.24

93.91 4.67%
1,502,571.20
3,233.33

0.72%
(31,015.04)
Aa1/AA+
AAA

2.98 2.72
3137FPJG1 FHMS K-099 A2 2.595 09/25/2029 1,500,000.00 06/05/2025

4.21%
1,407,011.72
1,433,992.78

94.21 4.68%
1,413,091.50
3,243.75

0.68%
(20,901.28)
Aa1/AA+
AAA

3.07 2.79
3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 2,000,000.00 06/06/2025

4.37%
1,810,078.13
1,861,066.16

91.84 4.70%
1,836,850.00
3,448.33

0.89%
(24,216.16)
Aa1/AA+
AAA

3.40 3.18
3137FTZQ3 FHMS K-110 A2 1.477 04/25/2030 1,500,000.00 09/03/2025

3.96%
1,348,652.34
1,381,174.83

89.70 4.70%
1,345,426.50
1,846.25

0.65%
(35,748.33)
Aa1/AA+
AAA

3.65 3.32
3137FWG79 FHMS K-115 A2 1.383 06/25/2030 2,000,000.00 12/10/2025

3.99%
1,787,343.75
1,821,285.20

88.54 4.72%
1,770,802.00
2,305.00

0.85%
(50,483.20)
Aa1/AA+
AAA

3.82 3.59
3137FX3Q9 FHMS K-117 A2 1.406 08/25/2030 1,000,000.00 06/03/2026

4.46%
885,820.31
892,226.43

88.21 4.73%
882,071.00
1,171.67

0.43%
(10,155.43)
Aa1/AA+
AAA

3.98 3.72
3137FXZ35 FHMS K-127 A2 2.108 01/25/2031 1,000,000.00 02/03/2026

4.11%
910,937.50
921,236.91

89.79 4.71%
897,869.00
1,756.67

0.43%
(23,367.91)
Aa1/AA+
AAA

4.40 4.07
23,330,746.80 94.37 23,580,089.89 11.37% 2.94
Total Agency CMBS 25,015,877.76 4.33% 23,865,349.03 4.66% 55,747.18 (285,259.15) 2.68 CASH
992995944 WC MMF SWEEP 53,412.81 --

1.80%
53,412.81
53,412.81

1.00 1.80%
53,412.81

0.00 0.03%

0.00 NA/NA
NA

0.00 0.00
CCYUSD Receivable 4,953.12 -- 4,953.12
4,953.12

1.00 4,953.12

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
58,365.93 1.00 58,365.93 0.03% 0.00
Total Cash 58,365.93 1.80% 58,365.93 1.80% 0.00 0.00 0.00

CORPORATE
084664CZ2 BERKSHIRE HATHAWAY FINANCE
CORP 2.3 03/15/2027 1,615,000.00 03/07/20222.30%
1,614,693.15
1,614,967.23

98.96 4.26%
1,598,283.14
17,127.97

0.77%
(16,684.10)
Aa2/AA
A+

0.54 0.52
26 54
CC 10-06-2026 Searchable Packet
54 of 1222

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
58989V2M5 MET TOWER GLOBAL FUNDING

4.0 01/14/2029 1,000,000.00 01/07/20264.05%
998,710.00
998,980.71

98.34 4.75%
983,402.00
5,222.22

0.47%
(15,578.71)
Aa3/AAAA2.37

2.22 38151LAJ9 GOLDMAN SACHS BANK USA

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

99.68 4.68%
672,871.05
7,682.40

0.32%
(2,128.95)
A1/A+
AA2.761.65
64952WFG3 NEW YORK LIFE GLOBAL FUNDING

5.0 06/06/2029 1,000,000.00 07/01/20245.12%
994,880.00
997,129.96
100.48

4.81%
1,004,760.00
11,805.56

0.48%
7,630.04
Aa1/AA+
AAA

2.76 2.53
437076BY7 THE HOME DEPOT, INC. 2.95
06/15/2029 1,663,000.00 09/17/20243.93%
1,593,203.89
1,621,952.95

95.65 4.63%
1,590,649.52
10,356.79

0.77%
(31,303.43)
A2/A
A

2.79 2.62
44891AEN3 HYUNDAI CAPITAL AMERICA 4.75
06/18/2029 1,100,000.00 06/15/20264.79%
1,098,909.75
1,098,984.36

99.20 5.06%
1,091,205.50
10,595.14

0.53%
(7,778.86)
A3/AA2.80

2.56 437076DC3 HOME DEPOT INC 4.75
06/25/2029 1,000,000.00 07/01/20244.93%
992,260.00
995,625.77
100.28

4.64%
1,002,779.00
8,708.33

0.48%
7,153.23
A2/A
A

2.82 2.52
756109CB8 REALTY INCOME CORP 4.0
07/15/2029 1,463,000.00 08/08/20244.69%
1,419,212.41
1,437,520.05

97.85 4.81%
1,431,538.19
7,477.56

0.69%
(5,981.86)
A3/ANA2.87

2.66 46647PAV8 JPMORGAN CHASE & CO 4.203
07/23/2029 1,500,000.00 09/17/20244.27%
1,496,610.00
1,498,331.56

99.04 4.94%
1,485,550.50
6,654.75

0.72%
(12,781.06)
A1/A
AA2.891.79
06051GHM4 BANK OF AMERICA CORPORATION

4.271 07/23/2029 1,500,000.00 09/17/20244.29%
1,498,710.00
1,499,365.11

99.04 5.00%
1,485,600.00
6,762.42

0.72%
(13,765.11)
A1/AAA2.89

1.79 30303M8S4 META PLATFORMS, INC. 4.3
08/15/2029 912,000.00 08/12/20244.33%
910,584.09
911,163.33

99.23 4.58%
904,990.37
1,742.93

0.44%
(6,172.96)
Aa3/AANA2.96

2.74 171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 1,750,000.00 --4.44%
1,765,746.34
1,759,416.44

99.77 4.73%
1,746,001.25
3,616.67

0.84%
(13,415.19)
A2/A
A

2.96 2.73
91324PDS8 UNITEDHEALTH GROUP INC 2.875
08/15/2029 2,000,000.00 09/17/20243.94%
1,906,080.00
1,943,448.84

94.92 4.74%
1,898,440.00
2,555.56

0.92%
(45,008.84)
A2/A+
A

2.96 2.78
02665WFQ9 AMERICAN HONDA FINANCE
CORP 4.4 09/05/2029 1,750,000.00 10/02/20244.29%
1,758,102.50
1,754,957.04

98.42 4.97%
1,722,313.25
37,644.44

0.83%
(32,643.79)
A3/BBB+
A3.012.72
40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING

4.179 09/26/2029 1,000,000.00 09/23/20244.18%
1,000,000.00
1,000,000.00

97.92 4.92%
979,220.00
17,992.92

0.47%
(20,780.00)
Aa1/AA+
NA

3.07 2.79
61748UAK8 MORGAN STANLEY 4.133
10/18/2029 1,470,000.00 10/17/20254.25%
1,470,184.60
1,470,131.52

98.40 4.83%
1,446,474.12
22,445.63

0.70%
(23,657.40)
A1/AA+3.13

1.98 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

98.41 4.82%
1,008,691.23
15,371.87

0.49%
(16,308.78)
A2/BBB+
A

3.14 1.99
14913UAU4 CATERPILLAR FINANCIAL SERVICES
CORP 4.7 11/15/2029 1,200,000.00 11/14/20244.74%
1,198,092.00
1,198,776.41

99.98 4.71%
1,199,743.20
16,606.67

0.58%
966.79
A1/A
A+

3.21 2.91
27 55
CC 10-06-2026 Searchable Packet
55 of 1222

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
64952WFK4 NEW YORK LIFE GLOBAL FUNDING

4.6 12/05/2029 1,000,000.00 12/02/20244.61%
999,430.00
999,628.22

99.35 4.82%
993,487.00
10,988.89

0.48%
(6,141.22)
Aa1/AA+
AAA

3.26 2.96
89236TNA9 TOYOTA MOTOR CREDIT CORP

4.95 01/09/2030 1,445,000.00 01/06/20255.00%
1,441,907.70
1,442,923.79
100.34

4.84%
1,449,889.88
10,331.75

0.70%
6,966.09
A1/A+
A+

3.36 3.04
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
1,001,959.50
100.12

4.91%
1,001,211.00
3,300.00

0.48%
(748.50)
A2/NA
A

3.44 3.11
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 1,400,000.00 03/11/20254.69% 1,397,340.00
1,398,117.29

99.23 4.89%
1,389,161.20
30,018.33

0.67%
(8,956.09)
A3/AA3.54

3.16 57629TBX4 MASSMUTUAL GLOBAL FUNDING
II 4.55 05/07/2030 1,000,000.00 05/01/20254.58%
998,670.00
999,021.07

98.32 5.05%
983,224.00
14,408.33

0.47%
(15,797.07)
Aa3/AA+
AA+

3.68 3.30
66815L2W8 NORTHWESTERNMUTUAL
GLOBAL FUNDING 4.6 06/03/2030 1,000,000.00 06/12/20254.51% 1,004,040.00
1,003,050.02

98.69 4.99%
986,852.00
11,244.44

0.48%
(16,198.02)
Aa1/AA+
AAA

3.76 3.37
828807DK0 SIMON PROPERTYGROUP LP 2.65
07/15/2030 2,000,000.00 08/19/20254.32%
1,853,380.00
1,884,260.30

92.00 4.95%
1,839,920.00
6,772.22

0.89%
(44,340.30)
A3/A
NA

3.87 3.60
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

97.19 5.09%
1,457,829.00
26,142.29

0.70%
(42,171.00)
Aa1/AA+
NA

4.10 3.63
24422EYF0 JOHN DEERE CAPITAL CORP 4.375
10/15/2030 1,000,000.00 11/04/20254.22%
1,006,920.00
1,005,769.86

98.33 4.83%
983,267.00
16,527.78

0.47%
(22,502.86)
A1/A
A+

4.12 3.66
141781CF9 CARGILL INC 4.125 10/23/2030 1,100,000.00 10/20/2025

4.14%
1,099,171.70
1,099,313.68

97.00 4.93%
1,066,991.20
16,133.33

0.51%
(32,322.48)
A2/A
NA

4.15 3.70
30303MAB8 META PLATFORMS INC 4.2
11/15/2030 1,500,000.00 11/13/20254.16%
1,502,895.00
1,502,429.99

96.92 5.02%
1,453,849.50
18,550.00

0.70%
(48,580.49)
Aa3/AANA4.21

3.75 74153WCZ0 PRICOA GLOBAL FUNDING I 4.35
11/25/2030 1,000,000.00 12/08/20254.36%
999,680.00
999,726.98

97.29 5.07%
972,937.00
11,600.00

0.47%
(26,789.98)
Aa3/NA
AA4.243.77
89236TPH2 TOYOTA MOTOR CREDIT CORP 4.2
01/10/2031 1,080,000.00 01/07/20264.21%
1,079,665.20
1,079,707.78

97.37 4.88%
1,051,548.48
6,426.00

0.51%
(28,159.30)
A1/A+
A+

4.36 3.90
66815L2Z1 NORTHWESTERNMUTUAL
GLOBAL FUNDING 4.3 01/13/2031 1,020,000.00 01/06/20264.30% 1,019,908.20
1,019,919.81

97.33 4.99%
992,784.36
5,848.00

0.48%
(27,135.45)
Aa1/AA+
AAA

4.37 3.90
06051GML0 BANK OF AMERICA CORPORATION

5.162 01/24/2031 1,500,000.00 08/10/20264.93%
1,510,845.00
1,510,664.54
100.36

4.97%
1,505,415.00
7,958.08

0.73%
(5,249.54)
A1/AAA4.40

3.07 6944PL3M9 PACIFIC LIFE GLOBAL FUNDING II

4.375 02/03/2031 1,000,000.00 01/29/20264.34%
1,001,380.00
1,001,221.29

97.71 4.96%
977,141.00
3,402.78

0.47%
(24,080.29)
Aa3/AAAA4.43

3.95 28
56 CC 10-06-2026 Searchable Packet
56 of 1222

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
92826CAZ5 VISA INC. 4.1 02/12/2031 1,345,000.00 02/03/2026

4.13%
1,343,197.70
1,343,396.09

97.81 4.65%
1,315,603.68
2,910.43

0.63%
(27,792.41)
Aa3/AANA4.45

4.00 02079KBK2 ALPHABET INC. 4.1 02/15/2031 1,500,000.00 02/12/2026

4.10%
1,500,087.78
1,500,077.62

96.64 4.95%
1,449,643.50
2,733.33

0.70%
(50,434.12)
Aa2/AA+
NA

4.46 4.00
24422EYL7 JOHN DEERE CAPITAL CORP 4.2
03/10/2031 1,060,000.00 03/05/20264.20%
1,059,766.80
1,059,789.15

97.10 4.92%
1,029,303.46
21,147.00

0.50%
(30,485.69)
A1/A
A+

4.52 3.98
46647PBJ4 JPMORGAN CHASE & CO 4.493
03/24/2031 1,500,000.00 08/10/20264.81%
1,480,335.00
1,480,579.94

98.37 5.53%
1,475,514.00
29,391.71

0.71%
(5,065.94)
A1/A
AA4.563.19
14913V2D9 CATERPILLAR FINANCIAL SERVICES
CORP 4.5 05/15/2031 525,000.00 05/11/20264.53%
524,280.75
524,323.68

98.28 4.91%
515,983.65
6,956.25

0.25%
(8,340.03)
A1/A
A+

4.70 4.13
57636QBL7 MASTERCARD INCORPORATED 4.6
06/08/2031 1,765,000.00 06/04/20264.62%
1,763,588.00
1,763,653.73

98.69 4.91%
1,741,867.91
18,718.81

0.84%
(21,785.82)
Aa3/A+
NA

4.77 4.19
67066GAR5 NVIDIA CORP 4.5 06/15/2031 1,065,000.00 06/15/2026

4.54%
1,062,976.50
1,063,059.75

97.69 5.05%
1,040,419.80
9,718.13

0.50%
(22,639.95)
Aa1/AA
NA

4.79 4.21
023135EC6 AMAZON.COM INC 4.8
07/09/2031 2,760,000.00 07/07/20264.83%
2,756,494.80
2,756,598.46

99.08 5.01%
2,734,734.96
19,136.00

1.32%
(21,863.50)
A1/AA
AA4.854.25
69371RU61 PACCAR FINANCIAL CORP 4.85
08/10/2031 1,765,000.00 08/03/20264.85%
1,765,000.00
1,765,000.00

99.71 4.92%
1,759,957.40
4,993.48

0.85%
(5,042.61)
A1/A+
NA

4.94 4.33
63743HGH9

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 5.0
08/15/2031
1,475,000.00
08/10/2026

5.03%
1,472,949.75
1,472,966.61

99.40 5.14%
1,466,197.20
2,868.06

0.71%
(6,769.41)
A2/NA
A

4.96 4.33
Total Corporate 57,928,000.00 4.42%
57,562,762.22
57,677,910.43

98.23 4.89%
56,887,245.48
528,595.25

27.44%
(790,664.95)

3.66 3.15

MONEY MARKET
FUND
VP4520004 WF ADV 100% TREAS MM FD-SVC
CL #008 1,635,059.49 --3.25%
1,635,059.49
1,635,059.49

1.00 3.25%
1,635,059.49

0.00 0.79%

0.00 Aaa/AAAm
NA

0.00 0.00
Total Money Market
Fund 1,635,059.49 3.25%
1,635,059.49
1,635,059.49

1.00 3.25%
1,635,059.49

0.00 0.79%

0.00 0.00

0.00 MUNICIPAL BONDS
29 57
CC 10-06-2026 Searchable Packet
57 of 1222

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
1,745,644.99

99.91 4.53%
1,738,439.22
6,525.00

0.84%
(7,205.77)
Aa2/AAAA2.92

2.70 Total Municipal
Bonds 1,740,000.00 4.38%
1,749,169.80
1,745,644.99

99.91 4.53%
1,738,439.22
6,525.00

0.84%
(7,205.77)

2.92 2.70

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
1,731,613.64

98.36 4.44%
1,721,252.75
25,427.50

0.83%
(10,360.89)
Aaa/AAA
NA

3.13 2.87
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
1,695,897.66

98.89 4.47%
1,681,141.90
31,361.46

0.81%
(14,755.76)
Aaa/AAA
NA

3.55 3.21
Total Supranational 3,450,000.00 4.23%
3,415,730.00
3,427,511.29

98.62 4.45%
3,402,394.65
56,788.96

1.64%
(25,116.64)

3.34 3.03

US TREASURY
91282CCZ2 UNITED STATES TREASURY 0.875
09/30/2026 1,400,000.00 10/18/20211.19%
1,379,054.68
1,399,663.85

99.75 3.97%
1,396,557.40
5,154.37

0.67%
(3,106.45)
Aa1/AA+
AA+

0.08 0.08
91282CDG3 UNITED STATES TREASURY 1.125
10/31/2026 1,400,000.00 11/15/20211.25%
1,391,468.75
1,399,717.04

99.54 3.93%
1,393,613.20
5,307.07

0.67%
(6,103.84)
Aa1/AA+
AA+

0.17 0.16
91282CJP7 UNITED STATES TREASURY 4.375
12/15/2026 2,000,000.00 12/28/20234.01%
2,020,078.13
2,001,948.43
100.14

3.85%
2,002,774.00
18,647.54

0.97%
825.57
Aa1/AA+
AA+

0.29 0.28
912828V98 UNITED STATES TREASURY 2.25
02/15/2027 3,000,000.00 06/29/20263.99%
2,968,007.81
2,976,770.89

99.23 3.98%
2,976,750.00
3,118.21

1.44%
(20.89)
Aa1/AA+
AA+

0.46 0.45
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 2,300,000.00 04/17/20244.77%
2,283,109.38
2,296,504.32
100.27

4.05%
2,306,115.70
39,307.38

1.11%
9,611.38
Aa1/AA+
AA+

0.62 0.60
91282CKR1 UNITED STATES TREASURY 4.5
05/15/2027 3,200,000.00 05/08/20244.65%
3,186,500.00
3,196,843.84
100.25

4.13%
3,208,064.00
42,652.17

1.55%
11,220.16
Aa1/AA+
AA+

0.70 0.68
91282CEW7 UNITED STATES TREASURY 3.25
06/30/2027 3,250,000.00 --3.18%
3,260,312.50
3,251,662.09

99.25 4.17%
3,225,657.50
18,082.54

1.56%
(26,004.59)
Aa1/AA+
AA+

0.83 0.80
91282CFB2 UNITED STATES TREASURY 2.75
07/31/2027 400,000.00 08/22/20223.12%
393,218.75
398,747.56

98.69 4.23%
394,756.40
956.52

0.19%
(3,991.16)
Aa1/AA+
AA+

0.91 0.89
30 58
CC 10-06-2026 Searchable Packet
58 of 1222

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
4,493,767.91

98.94 4.22%
4,452,435.00
388.47

2.15%
(41,332.91)
Aa1/AA+
AA+

1.00 0.97
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 3,450,000.00 --4.31%
3,421,152.34
3,443,674.09

99.88 4.24%
3,445,687.50
59,880.12

1.66%
2,013.41
Aa1/AA+
AA+

1.08 1.03
91282CFZ9 UNITED STATES TREASURY 3.875
11/30/2027 850,000.00 12/05/20223.81%
852,656.25
850,664.06

99.50 4.28%
845,783.15
8,369.36

0.41%
(4,880.91)
Aa1/AA+
AA+

1.25 1.19
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 2,750,000.00 --3.67%
2,775,107.42
2,756,786.57

99.45 4.30%
2,734,960.25
18,243.04

1.32%
(21,826.32)
Aa1/AA+
AA+

1.33 1.27
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028 3,000,000.00 02/07/20233.81%
2,957,929.69
2,988,036.11

98.90 4.31%
2,967,069.00
9,130.43

1.43%
(20,967.11)
Aa1/AA+
AA+

1.42 1.36
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028 3,700,000.00 --4.01%
3,699,113.28
3,699,774.65

99.55 4.32%
3,683,235.30
408.84

1.78%
(16,539.35)
Aa1/AA+
AA+

1.50 1.44
91282CNY3 UNITED STATES TREASURY 3.375
09/15/2028 5,000,000.00 10/28/20253.50%
4,982,812.50
4,987,828.24

98.11 4.36%
4,905,275.00
77,955.16

2.37%
(82,553.24)
Aa1/AA+
AA+

2.04 1.91
91282CQA2 UNITED STATES TREASURY 3.5
02/15/2029 4,000,000.00 04/27/20263.81%
3,966,718.75
3,970,813.90

97.95 4.39%
3,917,968.00
6,467.39

1.89%
(52,845.90)
Aa1/AA+
AA+

2.46 2.32
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 2,300,000.00 04/17/20244.62%
2,249,867.19
2,273,879.92

99.37 4.39%
2,285,445.60
39,920.08

1.10%
11,565.68
Aa1/AA+
AA+

2.58 2.38
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 2,000,000.00 07/01/20244.41%
1,985,546.88
1,991,814.65

99.59 4.41%
1,991,718.00
14,551.63

0.96%
(96.65)
Aa1/AA+
AA+

2.83 2.62
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 3,500,000.00 09/11/20243.45%
3,527,480.47
3,516,597.42

97.80 4.42%
3,422,891.50
350.48

1.65%
(93,705.92)
Aa1/AA+
AA+

3.00 2.80
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 5,000,000.00 --3.83%
4,925,039.06
4,953,498.87

97.38 4.42%
4,868,945.00
73,633.88

2.35%
(84,553.87)
Aa1/AA+
AA+

3.08 2.84
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 3,000,000.00 10/31/20244.17%
2,993,789.06
2,996,065.84

99.11 4.43%
2,973,165.00
41,698.37

1.43%
(22,900.84)
Aa1/AA+
AA+

3.17 2.89
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 4,400,000.00 --4.53%
4,369,171.88
4,379,279.43

99.82 4.43%
4,392,093.20
32,955.16

2.12%
12,813.77
Aa1/AA+
AA+

3.33 3.04
91282CMG3 UNITED STATES TREASURY 4.25
01/31/2030 4,000,000.00 02/07/20254.34%
3,983,906.25
3,988,939.98

99.38 4.45%
3,975,312.00
14,782.61

1.92%
(13,627.98)
Aa1/AA+
AA+

3.42 3.13
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 4,500,000.00 --4.01%
4,496,958.99
4,497,821.48

98.59 4.44%
4,436,541.00
497.24

2.14%
(61,280.48)
Aa1/AA+
AA+

3.50 3.22
91282CNK3 UNITED STATES TREASURY 3.875
06/30/2030 5,000,000.00 --3.78%
5,020,507.81
5,017,245.90

97.96 4.46%
4,897,850.00
33,169.16

2.36%
(119,395.90)
Aa1/AA+
AA+

3.83 3.49
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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
5,073,101.85

98.34 4.47%
4,917,190.00
17,391.30

2.37%
(155,911.85)
Aa1/AA+
AA+

3.91 3.57
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 5,000,000.00 --3.66%
4,991,425.79
4,993,166.27

96.93 4.47%
4,846,680.00
500.69

2.34%
(146,486.27)
Aa1/AA+
AA+

4.00 3.67
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 5,000,000.00 --3.59%
5,008,789.06
5,007,261.01

96.88 4.47%
4,843,750.00
76,263.66

2.34%
(163,511.01)
Aa1/AA+
AA+

4.08 3.68
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 1,750,000.00 12/15/20253.73%
1,731,816.41
1,734,418.37

96.24 4.48%
1,684,170.25
15,563.52

0.81%
(50,248.12)
Aa1/AA+
AA+

4.25 3.85
91282CQG9 UNITED STATES TREASURY 3.875
03/31/2031 3,500,000.00 05/21/20264.28%
3,438,066.41
3,441,627.42

97.48 4.49%
3,411,954.00
57,066.26

1.65%
(29,673.42)
Aa1/AA+
AA+

4.58 4.07
Total US Treasury 98,150,000.00 3.83%
97,817,570.33
97,977,921.95

98.64 4.34%
96,804,406.95
732,412.67

46.69%
(1,173,515.00)

2.49 2.30
Total Portfolio 211,208,196.00 4.14%
208,825,767.31
209,628,567.41

97.41 4.52%
207,329,417.02
1,529,427.95
100.00%
(2,299,150.39)

2.83 2.44
Total Market Value +
Accrued 208,858,844.97
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TRANSACTIONS
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TRANSACTION LEDGER
City of Cupertino | Account #10659|08/01/2026 Through 08/31/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 08/10/2026 69371RU61 1,765,000.00 PACCAR FINANCIAL CORP 4.85 08/10/2031 100.000 4.85% (1,765,000.00) 0.00 (1,765,000.00) 0.00 Purchase 08/11/2026 46647PBJ4 1,500,000.00 JPMORGAN CHASE & CO 4.493 03/24/2031 98.689 4.81% (1,480,335.00) (25,647.54) (1,505,982.54) 0.00 Purchase 08/11/2026 06051GML0 1,500,000.00

BANK OF AMERICA
CORPORATION 5.162
01/24/2031
100.723 4.93% (1,510,845.00) (3,656.42) (1,514,501.42) 0.00 Purchase 08/17/2026 63743HGH9 1,475,000.00

NATIONAL

RURAL UTILITIES

COOPERATIVE
FINANCE CORP 5.0
08/15/2031

99.861 5.03% (1,472,949.75) 0.00 (1,472,949.75) 0.00
Total Purchase 6,240,000.00 (6,229,129.75) (29,303.96) (6,258,433.71) 0.00 TOTAL
ACQUISITIONS 6,240,000.00 (6,229,129.75) (29,303.96) (6,258,433.71) 0.00

DISPOSITIONS
Sale 08/05/2026 713448FX1 (1,500,000.00) PEPSICO, INC. 4.5 07/17/2029 100.139 4.53% 1,502,085.00 3,375.00 1,505,460.00 3,456.32 Sale 08/07/2026 64952WFK4 (365,000.00)

NEW YORK LIFE
GLOBAL FUNDING 4.6
12/05/2029

99.613 4.61% 363,587.45 2,891.61 366,479.06 (1,274.00)
Sale 08/07/2026 40139LBJ1 (205,000.00)

GUARDIAN LIFE

GLOBAL FUNDING

4.179 09/26/2029

98.158 4.18% 201,223.90 3,117.42 204,341.32 (3,776.10)
Sale 08/07/2026 74153WCZ0 (750,000.00)

PRICOA GLOBAL
FUNDING I 4.35
11/25/2030

97.801 4.36% 733,507.50 6,525.00 740,032.50 (16,284.42) Sale 08/07/2026 58989V2M5 (310,000.00)

MET TOWER GLOBAL
FUNDING 4.0
01/14/2029

98.435 4.05% 305,148.50 792.22 305,940.72 (4,526.40)
Sale 08/11/2026 743315AV5 (1,500,000.00)

THE PROGRESSIVE
CORPORATION 4.0
03/01/2029

98.543 4.72% 1,478,145.00 26,666.67 1,504,811.67 2,744.03 34 62
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UNITED STATES
TREASURY 4.375
12/15/2026
100.172 4.01% 500,859.38 3,406.76 504,266.14 274.85
Total Sale (5,130,000.00) 5,084,556.73 46,774.68 5,131,331.41 (19,385.72) TOTAL
DISPOSITIONS (5,130,000.00) 5,084,556.73 46,774.68 5,131,331.41 (19,385.72) 35 63
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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. 36 64
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BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr Unsubordinated US
Treasury & Agency Index
The ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 37 65
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CITY OF CUPERTINO
Agenda Item
25-14450 Agenda Date: 10/6/2026
Agenda #: 6.

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

Receive the Monthly Treasurer's Report for August 2026.

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August 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 July 31, 2026 Receipts Disbursements Journal Adjustments as of August 31, 2026 General Fund 100 General Fund 222,769,015 8,381,574 (4,389,499) 586,473 227,347,562 General Fund 130 Investment Fund 682,330 ‐ ‐ 882,887 1,565,217 Special Revenue Funds 210 Storm Drain Improvement 154,091 ‐ ‐ 6 154,097Special Revenue Funds 215 Storm Drain AB1600 2,451,825 8,535 ‐ 93 2,460,453 Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 617,968 32,375 (57,582) 24 592,785 Special Revenue Funds 260 CDBG 710,804 116,213 (80,039) 36 747,015 Special Revenue Funds 261 HCD Loan Rehab 230,372 ‐ ‐ ‐ 230,372 Special Revenue Funds 265 BMR Housing 4,992,679 240 (6,613) 190 4,986,495 Special Revenue Funds 270 Transportation Fund 16,052,871 308,676 (122,103) 612 16,240,056 Special Revenue Funds 271 Traffic Impact 961,799 ‐ ‐ 37 961,835 Special Revenue Funds 280 Park Dedication 21,617,505 13,742 (3,827) 824 21,628,244 Special Revenue Funds 281 Tree Fund 86,488 3,300 ‐ 3 89,791Debt Service Funds 365 Public Facilities Corp (1,500) ‐ ‐ ‐ (1,500) Capital Project Funds 420 Capital Improvement Fund 33,036,327 31,875 (234,770) ‐ 32,833,432 Capital Project Funds 427 Stevens Creek Corridor Park 157,338 ‐ ‐ ‐ 157,338 Capital Project Funds 429 Capital Reserve* 7,142,250 ‐ ‐ ‐ 7,142,250 Enterprise Funds 520 Resource Recovery 4,922,524 213,575 (82,349) 188 5,053,938 Enterprise Funds 560 Blackberry Farm 817,891 2,597 (73,612) 83,837 830,713 Enterprise Funds 570 Sports Center 1,290,633 50,350 (100,079) 94,697 1,335,601 Enterprise Funds 580 Recreation Program 2,986,476 22,273 (183,516) 385,366 3,210,600 Internal Service Funds 610 Innovation & Technology 2,642,568 675 (248,745) 98 2,394,596 Internal Service Funds 620 Workersʹ Compensation 4,067,284 ‐ (5,739) (8,763) 4,052,782 Internal Service Funds 630 Vehicle/Equip Replacement 1,254,142 1,650 (55,324) 48 1,200,516 Internal Service Funds 641 Compensated Absence/LTD 20,360 ‐ 301 1 20,661 Internal Service Funds 642 Retiree Medical (91,814) ‐ (163,142) ‐ (254,956) Total $ 329,572,225 $ 9,187,650 $ (5,806,636) $ 2,026,655 $ 334,979,894 * For reporting purposes, this fund rolls up/combines with Fund 420Printed September 30, 2026For more information on funds, please see cupertino.org/fund‐structure 70 CC 10-06-2026 Searchable Packet
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August 2026 Report of City‐wide Fund Balances/Net Position (Unaudited)
Beginning Fund Balance Ending Fund Balance
Fund Type Fund Number/Name as of July 31, 2026 Revenues Expenditures as of August 31, 2026 General Fund 100 General Fund 175,423,148 2,370,431 3,617,771 174,175,808 General Fund 130 Investment Fund 682,330 882,887 ‐ 1,565,217 Special Revenue Funds 210 Storm Drain Improvement 149,153 6 ‐ 149,159 Special Revenue Funds 215 Storm Drain AB1600 2,260,526 8,628 ‐ 2,269,155 Special Revenue Funds 230 Env Mgmt Cln Crk Strm Drain 744,476 24 57,469 687,030 Special Revenue Funds 260 CDBG 1,551,720 36 5,291 1,546,465Special Revenue Funds 261 HCD Loan Rehab 231,291 ‐ ‐ 231,291 Special Revenue Funds 265 BMR Housing 9,570,972 430 6,613 9,564,788 Special Revenue Funds 270 Transportation Fund 13,056,258 309,287 101,721 13,263,825 Special Revenue Funds 271 Traffic Impact 910,773 37 ‐ 910,810 Special Revenue Funds 280 Park Dedication 20,816,961 14,566 ‐ 20,831,527Special Revenue Funds 281 Tree Fund 84,138 3,303 ‐ 87,441 Debt Service Funds 365 Public Facilities Corp 0 ‐ ‐ 0
Capital Project Funds 420 Capital Improvement Fund 26,030,013 ‐ 12,625 26,017,388Capital Project Funds 427 Stevens Creek Corridor Park 157,966 ‐ ‐ 157,966 Capital Project Funds 429 Capital Reserve* 7,025,482 ‐ ‐ 7,025,482 Enterprise Funds 520 Resource Recovery 4,461,551 143,674 70,360 4,534,864Enterprise Funds 560 Blackberry Farm 758,520 87,569 69,156 776,932 Enterprise Funds 570 Sports Center 1,170,971 88,880 83,333 1,176,518 Enterprise Funds 580 Recreation Program 2,936,634 120,502 184,522 2,872,614 Internal Service Funds 610 Innovation & Technology 1,826,696 173 246,775 1,580,095 Internal Service Funds 620 Workersʹ Compensation 2,299,922 153 12,193 2,287,882 Internal Service Funds 630 Vehicle/Equip Replacement 2,958,381 48 54,995 2,903,434 Internal Service Funds 641 Compensated Absence/LTD 41,499 9,421 9,119 41,801 Internal Service Funds 642 Retiree Medical (166,645) ‐ 163,142 (329,787) Total $ 274,982,736 $ 4,040,055 $ 4,695,086 $ 274,327,705* For reporting purposes, this fund rolls up/combines with Fund 420 Printed September 30, 2026For more information on funds, please see cupertino.org/fund‐structure 71 CC 10-06-2026 Searchable Packet
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CITY OF CUPERTINO
Agenda Item
26-15390 Agenda Date: 10/6/2026
Agenda #: 7.

Subject: Approval of a resolution increasing the employer's contribution for medical and hospitalization insurance consistent with the Public Employees’ Medical and Hospital Care Act (“PEMHCA” or the “Act”) for retired annuitants hired with the City of Cupertino prior to August 2004.

Adopt Resolution No. 26-101 increasing the employer's contribution for medical and hospitalization insurance for retired annuitants hired with the City of Cupertino prior to August 2004.

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CITY MANAGER’S OFFICE

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3120
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Date: October 6, 2026
Subject
Approval of a resolution increasing the employer's contribution for medical and hospitalization insurance consistent with the Public Employees’ Medical and Hospital Care Act (“PEMHCA” or the “Act”) for retired annuitants hired with the City of Cupertino prior to August 2004.

Recommended Action
Adopt Resolution No. 26-XXX increasing the employer's contribution for medical and hospitalization insurance for retired annuitants hired with the City of Cupertino prior to August 2004.

Background
Each year, CalPERS requires public agencies to notify them of any employer health contribution through a resolution adopted by the City Council. Under the Public Employees’ Medical and Hospital Care Act (PEMHCA), the City is subject to the equal contribution rule pursuant to Government Code section 22892(b)(1), which provides that the City’s contribution toward health insurance premiums for eligible retirees hired with the City of Cupertino prior to August 2004 must be equal to the contribution provided for active employees. Adoption of the draft resolution (Attachment A) fulfills reporting requirements associated under the Act, which provides that “a contracting agency shall perform the functions necessary to enroll its employees and submit reports as may be required by the board.”
On September 3, 2025 and October 21, 2025, the City Council approved Memorandum of Understanding (MOU) agreements revising the salary and benefits for the Operating Engineers, Local Union No. 3 and the Cupertino Employees’ Association/IFPTE Local 21 groups. The 3- year agreements specify that the City’s maximum contributions shall be tied to the CalPERS Kaiser Permanente plan increases and shall be capped at no more than 20% of any such total increase in aggregate during the course of the 2025-2028 MOU. The City's health contribution for employee medical equal to the Kaiser Permanente premiums, is shown below:
• Employee Only - $1,187.63/month
• Employee plus one dependent - $2,375.26/month
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• Employee plus 2 or more dependents - $3,087.84/month
The same benefit has been extended to the Unrepresented, Appointed, Elected Official, and Retiree Annuitants hired with the City of Cupertino prior to August 2004.

Retiree Annuitants who reach age 65 and are Medicare eligible, are placed in the CalPERS Supplement/Managed Medicare health program. Under this program, Medicare becomes primary for health coverage, significantly reducing the City’s health contribution premiums.

For example, 2027 Retiree Kaiser under the CalPERS Basic Plan is $1,187.63 per month whereas the CalPERS Medicare Kaiser Senior Advantage premium is $333.93 per month.

Reasons for Recommendation and Available Options
Adoption of the attached resolution fulfills CalPERS reporting requirements associated with the Act.

Sustainability Impact
No sustainability impact.

Fiscal Impact
The proposed adjustment will increase the City’s retiree annuitant medical contribution by approximately $4,300 in Fiscal Year 2026-27 and $8,600 for calendar year 2027. Through the Agreements approved by Council on September 3, 2025 and October 21, 2025, the City’s contribution to employee health coverage offered by Kaiser will remain at 100%, including a

1.61% increase in Kaiser premium rates from calendar year 2026.

No additional General Fund appropriation or budget adjustment is requested.

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

None
TBD Item:

No
California Environmental Quality Act
The proposed action does not constitute a project subject to CEQA. _____________________________________
Prepared by: Anna Tang-Sam, Human Resources Analyst II
Reviewed by: Jonathan Orozco, Director of Finance
Kirsten Squarcia, Deputy City Manager
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – Draft Resolution Employees and Annuitants Hired Prior to August 1, 2004 74 CC 10-06-2026 Searchable Packet
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RESOLUTION NO. ________

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

FIXING THE EMPLOYER CONTRIBUTION UNDER THE PUBLIC
EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT AT AN EQUAL

AMOUNT FOR EMPLOYEES AND ANNUITANTS
(Employees and Annuitants hired prior to August 1, 2004) WHEREAS, (1) the City of Cupertino is a contracting agency under Government Code Section 22920 and subject to the Public Employees’ Medical and Hospital Care Act (the “Act”); and
WHEREAS, (2) Government Code Section 22892(a) provides that a contracting agency subject to Act shall fix the amount of the employer contribution by resolution; and
WHEREAS, (3) Government Code Section 22892(b) provides that the employer contribution shall be an equal amount for both employees and annuitants, but may not be less than the amount prescribed by Section 22892(b) of the Act;
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby pass and adopt (a) That the employer contribution for each employee or annuitant shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of family members, in a health benefits plan up to a maximum of:

Medical Group Monthly Employer Health Contribution
Self Self + 1 Self + Family
001 Management $1187.63 $2375.26 $3087.84
002 Confidential $1187.63 $2375.26 $3087.84
003 Employees Association $1187.63 $2375.26 $3087.84
004 Operating Engineers $1187.63 $2375.26 $3087.84
005 City Attorney $1187.63 $2375.26 $3087.84
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(b) City of Cupertino has fully complied with any and all applicable provisions of Government Code Section 7507 in electing the benefits set forth above; and be it further; and
(c) That the participation of the employees and annuitants of City of Cupertino shall be subject to determination of its status as an “agency or instrumentality of the state or political subdivision of a State” that is eligible to participate in a governmental plan within the meaning of Section 414(d) of the Internal Revenue Code, upon publication of final Regulations pursuant to such Section. If it is determined that City of Cupertino would not qualify as an agency or instrumentality of the state or political subdivision of a State under such final Regulations, CalPERS may be obligated, and reserves the right to terminate the health coverage of all participants of the employer; and be it further; and (d) That the executive body appoint and direct, and it does hereby appoint and direct, City Clerk to file with City Council, to file with the Board a verified copy of this resolution, and to perform on behalf of City of Cupertino all functions required of it under the Act; and be it further; and
(e) That coverage under the Act be effective on January 1, 2027.

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

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6th day of October, 2026, by the following vote:
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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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CITY OF CUPERTINO
Agenda Item
26-15411 Agenda Date: 10/6/2026
Agenda #: 8.

Subject: Approval of a Resolution Authorizing Submittal of An Individual Grant Application for $80,000 for the Rubberized Pavement Grant Program.

Adopt Resolution No. 26-102 Authorizing Submittal of An Individual Grant Application for $80,000 from the Rubberized Pavement Grant Program.

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FINANCE DEPARTMENT

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3200
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Meeting: October 6, 2026
Subject
Approval of a Resolution Authorizing Submittal of An Individual Grant Application for $80,000 for the Rubberized Pavement Grant Program
Recommended Action
Adopt Resolution No. 26-XXX Authorizing Submittal of An Individual Grant Application for $80,000 from the Rubberized Pavement Grant Program
Background
The proposed grant application would request $80,000 from the Rubberized Pavement (Pavement) Grant Program to partially offset the cost of rubberized chip seal in the 2027 Pavement Maintenance Phase 2 Project. The Pavement Maintenance Phase 2 Project is a recurring annual roadway maintenance project that will apply rubberized chip seal across various roadway locations throughout the City. It is scheduled for construction between July 2027 and December 2027. The granting agency, CalRecycle, does not require a match.

CalRecycle's Pavement Grant Program aims to decrease adverse environmental impacts of waste tire disposal and to extend road usability, with rubberized pavement roads showing longer life cycles than roads made only with conventional materials.

The City of Cupertino adopted a Zero Waste Policy in 2017. The Policy's goal aligns with CalRecycle's goal of reducing by 90 percent the amount of waste sent to landfills. The Zero Waste Policy and the City's Climate Action Plan 2.0 recognize that disposal facilities such as landfills negatively impact human health, waste natural resources, and pass environmental liabilities on to future generations. One strategy identified is to pilot and support innovative, cost-effective programs that reduce waste generation and divert materials from landfills to their highest and best use. The Pavement Grant Program creates an opportunity for the City to address this strategy, through use of waste tires that would otherwise be in landfills.

Reasons for Recommendation and Available Options
CalRecycle requires all grant applicants to provide written evidence of authorization to apply for grant funding and recommends the use of standard language. Staff is presenting the proposed resolution to Council to comply with the granting agency requirement. If approved, the 79 CC 10-06-2026 Searchable Packet
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resolution will be submitted to CalRecycle by the October 20, 2026 deadline. The Pavement Maintenance Phase 2 Project was approved by the Council. The proposed grant opportunity aligns with the adopted Zero Waste Policy. By applying for grant funds to offset the project costs, the City avails an opportunity to leverage external funding to advance a priority project.

Based on alignment with the approved Pavement Maintenance Phase 2 Project and adopted City plans, staff recommends that Council adopt Resolution No. 26-___ (Attachment A) Authorizing Submittal of An Individual Grant Application for the Rubberized Pavement Grant Program.

Sustainability Impact
Approval of the draft resolution to apply for grant funds will facilitate a Climate Action Plan 2.0 goal to reduce 90% of all waste sent to landfills.

Fiscal Impact
There is no immediate fiscal impact associated with authorizing the grant application, and no additional appropriations are required. If awarded, the grant will increase budgeted revenue by $80,000 in revenue account 270-85-821-440-430 and will partially offset costs already budgeted for the 2027 Pavement Maintenance Phase 2 Project.

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

Environmental Sustainability, Fiscal Strategy
TBD Item:

No
California Environmental Quality Act
The proposed action does not constitute a “project” subject to CEQA. _____________________________________
Prepared by: Veena Raghavan, Grants Analyst
Reviewed by: Jonathan Orozco, Director of Finance
Kirsten Squarcia, Deputy City Manager
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – Draft Resolution Authorizing Submittal of An Individual Grant Application for the Rubberized Pavement Grant Program
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RESOLUTION NO. 26-

A RESOLUTION OF THE CUPERTINO CITY COUNCIL AUTHORIZING

SUBMITTAL OF AN INDIVIDUAL GRANT APPLICATION FOR THE

RUBBERIZED PAVEMENT GRANT PROGRAM
This resolution authorizes City of Cupertino staff to complete and submit an application for the Rubberized Pavement Grant Program operated by the Department of Resources Recycling and Recovery (CalRecycle), for the 2027 Pavement Maintenance Phase 2 Project.

WHEREAS, the California Public Resources Code authorizes the Department of Resources Recycling and Recovery (CalRecycle) to administer various Grant Programs; and
WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the Grant Programs; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle Grants; and WHEREAS, the City of Cupertino is requesting $80,000 from the CalRecycle Rubberized Pavement Grant Program; and
WHEREAS, the CalRecycle Rubberized Pavement Grant Program does not require a local match; and
WHEREAS, the City of Cupertino (Applicant) intends to enter into a Grant Agreement with the CalRecycle should grant funds be awarded; and NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby:

1. Authorize submittal of an individual grant application for the City of Cupertino to the Rubberized Pavement Grant Program operated by CalRecycle

2. Authorize Veena Raghavan, Grants Analyst; Saurabh Nijhawan, Senior Civil Engineer; and/or Chad Mosley, Director of Public Works to submit 81 CC 10-06-2026 Searchable Packet
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Resolution No. __________________

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an application for the Rubberized Pavement Grant Program operated by CalRecycle

3. Authorize the City Manager or their designee, in this case, Chad Mosley, Director of Public Works, as Signature Authority to execute in the name of City of Cupertino all grant documents, including but not limited to, applications, agreements, amendments, and requests for payment, necessary to secure grant funds and implement the approved grant project.

4. Approve the acceptance of grant funds from the Rubberized Pavement Grant Program, if the appropriate authorities award grant funding for the Project;

5. Approve these authorizations as effective for five years from the date of adoption.

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

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6th day of October, 2026, by the following vote:

Members of the City Council
AYES:

NOES:
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Resolution No. __________________

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ABSENT:

ABSTAIN:

SIGNED:
___________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
ATTEST:
_____________
Lauren Sapudar, City Clerk
________________________
Date
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CITY OF CUPERTINO
Agenda Item
26-15362 Agenda Date: 10/6/2026
Agenda #: 9.

Subject: Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing and approval of conduit financing for The RISE Block 5 Apartments Project

1. Conduct the public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended (the “Code”).

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CITY COUNCIL STAFF REPORT
October 6, 2026
Subject
Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing and approval of conduit financing for The RISE Block 5 Apartments Project Recommended Action

1. Conduct the public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended (the “Code”).

2. Adopt Resolution No. 26-___ approving the issuance of Bonds by the California Municipal Finance Authority (CMFA) for the benefit of Eden Housing, Inc., a California nonprofit public benefit corporation (the “Developer”), on behalf of a limited partnership or another ownership entity to be formed by the Developer or an affiliate of the Developer (such limited partnership or other ownership entity is referred to herein as the “Borrower”), to provide financing for the Project. Such adoption is solely for the purpose of satisfying the requirements of TEFRA and the California Government Code Section 6500 (and following). The resolution will also authorize the Mayor or designee to execute the Joint Exercise of Powers Agreement with the CMFA.

Executive Summary
The Rise Block 5 apartments project consists of 174 very low-income units, 58 low-income units, and 2 manager units of affordable housing to be developed as a phase of the Master Affordable Housing Agreement and Declaration of Restrictive Covenants (Master Affordable Housing Agreement) of the Vallco Rise project. The City Council is required to conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA”), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $135,000,000 (the “Bonds”), to (1) finance and refinance the costs of the acquisition, construction, improvement and equipping of a 234-unit affordable rental housing facility (the “Project”) to be located at 10123 North Wolfe Road, north of Vallco Parkway, on a portion of the site of the former Vallco Mall within the City and to be owned and operated by the Borrower, and to (2) pay certain expenses in connection with the issuance of the Bonds. 85 CC 10-06-2026 Searchable Packet
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The draft resolution (Attachment A), if adopted, would allow the City to become a member of the CMFA through execution of a joint exercise of powers agreement, would approve the financing for the Project by the CMFA, and would result in a payment to the City’s general fund of approximately $24,000, representing 25% of the issuance fee collected by CMFA.

Reasons for Recommendation
Issuance of tax credit financing bonds would support the financing of the construction of the RISE Block 5 affordable housing project. The development of the RISE Block 5 would contribute to the City’s 2023-2031 Housing Element Regional Housing Needs Allocation (RHNA) goals of producing very low and low-income housing. This action will demonstrate progress for meeting the following Housing Element Strategies: HE-2.3.1 (Support Affordable Housing Development) and HE-2.3.5 (Housing Resources).

Staff recommends that the City Council conduct the TEFRA Hearing, execute the Joint Exercise of Powers Agreement of the CMFA, and adopt the draft resolution approving the issuance of the Bonds by the CMFA to support the development of affordable housing.

Background
California Municipal Finance Authority
The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities have become members of CMFA.

The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.

TEFRA Hearing
The Borrower requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $135,000,000 of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance and refinance (1) the costs of the acquisition, construction, improvement and equipping of a 234-unit affordable rental housing facility (the “Project”) to be located at 10123 North Wolfe Road, north of Vallco Parkway, on a portion of the site of the former Vallco Mall within the City and to be owned and operated by the Borrower; and (2) pay certain expenses in connection with the issuance of the Bonds.

In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City must conduct a public hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for 86 CC 10-06-2026 Searchable Packet
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the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

Discussion
Execution of the Joint Exercise of Powers Agreement
In order for the CMFA to have the authority to serve as the issuer of the bonds for the Project, it is necessary for the City to become a member of the CMFA. Included as Attachment B to this report is the CMFA’s standard Joint Exercise of Powers Agreement that must be executed by the City in connection with the Bond issuance.

The Joint Exercise of Powers Agreement provides that the CMFA is a public entity, separate and apart from any of its members, all of whom have executed the agreement.

The debts, liabilities and obligations of the CMFA do not constitute debts, liabilities or obligations of any CMFA member.

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, or moral obligation, liability or responsibility for the Project or for the repayment of the Bonds used to finance of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be repaid solely from funds provided by the Borrower.

There are no costs associated with membership in the CMFA and the City will have no financial liability associated with its membership in the CMFA. In addition, participation by the City in the CMFA will not impact the City’s appropriations limits, nor will it constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing, adopting the draft resolution and executing the Joint Exercise of Powers Agreement of the CMFA, no other participation or activity of the City or the City Council with respect to the issuance of the Bonds will be required.

The Joint Exercise of Powers Agreement expressly provides that any member may withdraw, at anytime, from such agreement upon written notice to the Board of Directors of the CMFA. If the City becomes a member of the CMFA and the Bonds are issued, the City could subsequently withdraw from the CMFA by providing written notice to the Board of Directors of the CMFA.

Finally, this project satisfies the qualifications set forth in Cal. Gov. Code section 65913.4, enacted by Senate Bill 35. As such, the project qualifies for the streamlined, ministerial approval process outlined in that statue. If Council fails to approve the CMFA Bond financing, upon challenge a Court might conclude that such failure constitutes a project “denial” in violation of SB 35, resulting in the array of substantial penalties imposed on cities that deny projects in violation of SB 35.
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California Environmental Quality Act (CEQA)
The proposed action does not constitute a “project” subject to CEQA.

Sustainability Impact
No sustainability impact.

Fiscal Impact
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. The City of Cupertino will receive 25% of the issuance fee, which may be used for any lawful purpose of the City.

City Work Program (CWP) Item/Description
Preserve existing and develop new BMR/ELI Housing.

City Council Goal
Housing.
_____________________________________
Prepared by: Nicky Vu, Senior Housing Coordinator
Reviewed by: Luke Connolly, Assistant Director of Community Development Benjamin Fu, Director of Community Development
Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A – Draft Resolution 26-XXX (Rise Block 5 JPA CMFA Bond Issuance) B – Proposed CMFA JPA Agreement – City of Cupertino
C – Procedures and Municipal Protections under California Municipal Finance Authority Conduit Bond Issuances
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RESOLUTION NO. ________

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF A JOINT

EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA

MUNICIPAL FINANCE AUTHORITY AND APPROVING A PLAN OF

FINANCE FOR THE ISSUANCE OF REVENUE BONDS BY THE

AUTHORITY TO FINANCE AND REFINANCE A QUALIFIED

RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF EDEN HOUSING, INC. OR A LIMITED PARTNERSHIP OR OTHER OWNERSHIP ENTITY TO

BE FORMED BY IT, AND CERTAIN OTHER MATTERS RELATING

THERETO
WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”), certain public agencies (the “Members”) have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”) in order to form the California Municipal Finance Authority (the “Authority”), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, the City of Cupertino (the “City”), has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and
WHEREAS, there is now before this City Council (the “City Council”) the form of the Agreement; and
WHEREAS, the Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing the construction or rehabilitation of capital projects; and
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to be formed by the Developer or an affiliate of the Developer (such limited partnership or other ownership entity being referred to herein as the “Borrower”), has requested that the Authority undertake a plan of finance for the issuance of revenue bonds in the maximum principal amount not to exceed $135,000,000 outstanding (the “Bonds”), to finance and refinance (1) the costs of the acquisition, construction, improvement and equipping of a 234-unit affordable rental housing facility (the “Project”) to be located at 10123 North Wolfe Road, north of Vallco Parkway, on a portion of the site of the former Vallco Mall within the City and to be owned and operated by the Borrower; and (2) pay certain expenses in connection with the issuance of the Bonds; and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), requires that an “applicable elected representative” of a governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the plan of finance for the Project, including the issuance of the Bonds, and approve such plan of finance following such hearing; and
WHEREAS, the Authority has determined that the City Council is an “applicable elected representative” for purposes of holding such hearing; and WHEREAS, the Authority has requested that the City Council approve the plan of finance for the Project, including the issuance of the Bonds by the Authority, in order to satisfy the public approval requirement of Section 147(f) of the Code and, the requirements of Section 4 of the Agreement; and
WHEREAS, notice of such public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the plan of finance for the Project and the Authority’s issuance of the Bonds; and WHEREAS, it is in the public interest and for the public benefit that the City Council approve the plan of finance for the Project, including the issuance of the Bonds by the Authority, for the aforesaid purposes;
NOW, THEREFORE, BE IT RESOLVED by the City Council as follows:

Section 1. The foregoing recitals are true and correct. 90 CC 10-06-2026 Searchable Packet
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Section 2. The Agreement is hereby approved and the Mayor, City Manager or the designee thereof is hereby authorized and directed to execute said document, and the City Clerk or such Clerk’s designee is hereby authorized and directed to attest thereto.

Section 3. The City Council hereby approves the plan of finance for the issuance of the Bonds by the Authority, to finance and refinance the Project. It is the purpose and intent of the City Council that this resolution constitute approval of the plan of finance for the Project for the issuance of the Bonds, (a) by the “applicable elected representative” of a governmental unit having jurisdiction over the area in which the Project is to be located in accordance with Section 147(f) of the Code and (b) by the City Council in accordance with Section 4 of the Agreement.

Section 4. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.

Section 5. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

Section 6. The executing officers(s), the Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.

Section 7. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel:

Ronald E. Lee, Esq.

Jones Hall LLP
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4 West 4th Avenue, Suite 406
San Mateo, CA 94402
Section 8. This resolution shall take effect immediately upon its passage.

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

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6
th day of October, 2026, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
___________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
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ATTEST:
_____________
Lauren Sapudar, City Clerk
________________________
Date
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JOINT EXERCISE OF POWERS AGREEMENT

RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY
THIS AGREEMENT, dated as of January 1, 2004, among the parties executing this Agreement (all such parties, except those which have withdrawn as provided herein, are referred to as the “Members” and those parties initially executing this Agreement are referred to as the “Initial Members”):

WITNESSETH
WHEREAS, pursuant to Title 1, Division 7, Chapter 5 of the California Government Code (in effect as of the date hereof and as the same may from time to time be amended or supplemented, the “Joint Exercise of Powers Act”), two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and WHEREAS, each of the Members is a “public agency” as that term is defined in Section 6500 of the Joint Exercise of Powers Act; and
WHEREAS, each of the Members is empowered by law to promote economic, cultural and community development, including, without limitation, the promotion of opportunities for the creation or retention of employment, the stimulation of economic activity, the increase of the tax base, and the promotion of opportunities for education, cultural improvement and public health, safety and general welfare; and
WHEREAS, each of the Members may accomplish the purposes and objectives described in the preceding preamble by various means, including through making grants, loans or providing other financial assistance to governmental and nonprofit organizations; and WHEREAS, each Member is also empowered by law to acquire and dispose of real property for a public purpose; and
WHEREAS, the Joint Exercise of Powers Act authorizes the Members to create a joint exercise of powers entity with the authority to exercise any powers common to the Members, as specified in this Agreement and to exercise the additional powers granted to it in the Joint Exercise of Powers Act and any other applicable provisions of the laws of the State of California; and
WHEREAS, a public entity established pursuant to the Joint Exercise of Powers Act is empowered to issue or execute bonds, notes, commercial paper or any other evidences of indebtedness, including leases or installment sale agreements or certificates of participation therein (herein “Bonds”), and to otherwise undertake financing programs under the Joint Exercise of Powers Act or other applicable provisions of the laws of the State of California to accomplish its public purposes; and
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WHEREAS, the Members have determined to specifically authorize a public entity authorized pursuant to the Joint Exercise of Powers Act to issue Bonds pursuant to the Joint Exercise of Powers Act or other applicable provisions of the laws of the State of California; and WHEREAS, it is the desire of the Members to use a public entity established pursuant to the Joint Exercise of Powers Act to undertake the financing and/or refinancing of projects of any nature, including, but not limited to, capital or working capital projects, insurance, liability or retirement programs or facilitating Members use of existing or new financial instruments and mechanisms; and
WHEREAS, it is further the intention of the Members that the projects undertaken will result in significant public benefits to the inhabitants of the jurisdictions of the Members; and WHEREAS, by this Agreement, each Member desires to create and establish the “California Municipal Finance Authority” for the purposes set forth herein and to exercise the powers provided herein;
NOW, THEREFORE, the Members, for and in consideration of the mutual promises and agreements herein contained, do agree as follows:

Section 1. Purpose.

This Agreement is made pursuant to the provisions of the Joint Exercise of Powers Act.

The purpose of this Agreement is to establish a public entity for the joint exercise of powers common to the Members and for the exercise of additional powers given to a joint powers entity under the Joint Powers Act or any other applicable law, including, but not limited to, the issuance of Bonds for any purpose or activity permitted under the Joint Exercise of Powers Act or any other applicable law. Such purpose will be accomplished and said power exercised in the manner hereinafter set forth.

Section 2. Term.

This Agreement shall become effective in accordance with Section 17 as of the date hereof and shall continue in full force and effect until such time as it is terminated in writing by all the Members; provided, however, that this Agreement shall not terminate or be terminated until all Bonds issued or caused to be issued by the Authority (defined below) shall no longer be outstanding under the terms of the indenture, trust agreement or other instrument pursuant to which such Bonds are issued, or unless a successor to the Authority assumes all of the Authority’s debts, liabilities and obligastions.

Section 3. Authority.

A. CREATION AND POWERS OF AUTHORITY.

Pursuant to the Joint Exercise of Powers Act, there is hereby created a public entity to be known as the “California Municipal Finance Authority” (the “Authority”), and said Authority shall be a public entity separate and apart from the Members. Its 95 CC 10-06-2026 Searchable Packet
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debts, liabilities and obligations do not constitute debts, liabilities or obligations of any Members.

B. BOARD.

The Authority shall be administered by the Board of Directors (the “Board,” or the “Directors” and each a “Director”) of the California Foundation for Stronger Communities, a nonprofit public benefit corporation organized under the laws of the State of California (the “Foundation”), with each such Director serving in his or her individual capacity as a Director of the Board. The Board shall be the administering agency of this Agreement and, as such, shall be vested with the powers set forth herein, and shall administer this Agreement in accordance with the purposes and functions provided herein. The number of Directors, the appointment of Directors, alternates and successors, their respective terms of office, and all other provisions relating to the qualification and office of the Directors shall be as provided in the Articles and Bylaws of the Foundation, or by resolution of the Board adopted in accordance with the Bylaws of the Foundation.

All references in this Agreement to any Director shall be deemed to refer to and include the applicable alternate Director, if any, when so acting in place of a regularly appointed Director.

Directors may receive reasonable compensation for serving as such, and shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a Director, if the Board shall determine that such expenses shall be reimbursed and there are unencumbered funds available for such purpose.

The Foundation may be removed as administering agent hereunder and replaced at any time by amendment of this Agreement approved as provided in Section 16; provided that a successor administering agent of this Agreement has been appointed and accepted its duties and responsibilities under this Agreement.

C. OFFICERS; DUTIES; OFFICIAL BONDS.

The officers of the Authority shall be the Chair, Vice-Chair, Secretary and Treasurer (defined below). The Board, in its capacity as administering agent of this Agreement, shall elect a Chair, a Vice-Chair, and a Secretary of the Authority from among Directors to serve until such officer is re-elected or a successor to such office is elected by the Board. The Board shall appoint one or more of its officers or employees to serve as treasurer, auditor, and controller of the Authority (the “Treasurer”) pursuant to Section 6505.6 of the Joint Exercise of Powers Act to serve until such officer is re-elected or a successor to such office is elected by the Board.

Subject to the applicable provisions of any resolution, indenture, trust agreement or other instrument or proceeding authorizing or securing Bonds (each such resolution, indenture, trust agreement, instrument and proceeding being herein referred to as an “Indenture”) providing for a trustee or other fiscal agent, and except as may otherwise be 96 CC 10-06-2026 Searchable Packet
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specified by resolution of the Board, the Treasurer is designated as the depositary of the Authority to have custody of all money of the Authority, from whatever source derived and shall have the powers, duties and responsibilities specified in Sections 6505, 6505.5 and 6509.5 of the Joint Exercise of Powers Act.

The Treasurer of the Authority is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond with the Secretary of the Authority in the amount specified by resolution of the Board but in no event less than $1,000.

The Board shall have the power to appoint such other officers and employees as it may deem necessary and to retain independent counsel, consultants and accountants.

The Board shall have the power, by resolution, to the extent permitted by the Joint Exercise of Power Act or any other applicable law, to delegate any of its functions to one or more of the Directors or officers, employees or agents of the Authority and to cause any of said Directors, officers, employees or agents to take any actions and execute any documents or instruments for and in the name and on behalf of the Board or the Authority.

D. MEETINGS OF THE BOARD.
(1) Ralph M. Brown Act.

All meetings of the Board, including, without limitation, regular, adjourned regular, special, and adjourned special meetings shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the Government Code of the State of California), or any successor legislation hereinafter enacted (the “Brown Act”).
(2) Regular Meetings.

The Board shall provide for its regular meetings; provided, however, it shall hold at least one regular meeting each year. The date, hour and place of the holding of the regular meetings shall be fixed by resolution of the Board. To the extent permitted by the Brown Act, such meetings may be held by telephone conference.
(3) Special Meetings.

Special meetings of the Board may be called in accordance with the provisions of Section 54956 of the Government Code of the State of California. To the extent permitted by the Brown Act, such meetings may be held by telephone conference.
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(4) Minutes.

The Secretary of the Authority shall cause to be kept minutes of the regular, adjourned regular, special, and adjourned special meetings of the Board and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Director.
(5) Quorum.

A majority of the Board shall constitute a quorum for the transaction of business. No action may be taken by the Board except upon the affirmative vote of a majority of the Directors constituting a quorum, except that less than a quorum may adjourn a meeting to another time and place.

E. RULES AND REGULATIONS.

The Authority may adopt, from time to time, by resolution of the Board such rules and regulations for the conduct of its meetings and affairs as may be required.

Section 4. Powers.

The Authority shall have the power, in its own name, to exercise the common powers of the Members and to exercise all additional powers given to a joint powers entity under any of the laws of the State of California, including, but not limited to, the Joint Exercise of Powers Act, for any purpose authorized under this Agreement. Such powers shall include the common powers specified in this Agreement and may be exercised in the manner and according to the method provided in this Agreement. The Authority is hereby authorized to do all acts necessary for the exercise of such power, including, but not limited to, any of all of the following: to make and enter into contracts; to employ agents and employees; to acquire, construct, provide for maintenance and operation of, or maintain and operate, any buildings, works or improvements; to acquire, hold or dispose of property wherever located; to incur debts, liabilities or obligations; to receive gifts, contributions and donations of property, funds, services, and other forms of assistance from person, firms, corporations and any governmental entity; to sue and be sued in its own name; to make grants, loans or provide other financial assistance to governmental and nonprofit organizations (e.g., the Members or the Foundation) to accomplish any of its purposes; and generally to do any and all things necessary or convenient to accomplish its purposes.

Without limiting the generality of the foregoing, the Authority may issue or cause to be issued Bonds, and pledge any property or revenues as security to the extent permitted under the Joint Exercise of Powers Act, or any other applicable provision of law; provided, however, the Authority shall not issue Bonds with respect to any project located in the jurisdiction of one or more Members unless the governing body of any such Member, or its duly authorized representative, shall approve, conditionally or unconditionally, the project, including the issuance of Bonds therefor. Such approval may be evidenced by resolution, certificate, order, report or such other means of written approval of such project as may be selected by the Member (or its authorized representative) whose approval is required. No such approval shall be required in 98 CC 10-06-2026 Searchable Packet
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connection with Bonds that refund Bonds previously issued by the Authority and approved by the governing board of a Member.

The manner in which the Authority shall exercise its powers and perform its duties is and shall be subject to the restrictions upon the manner in which a California general law city could exercise such powers and perform such duties. The manner in which the Authority shall exercise its powers and perform its duties shall not be subject to any restrictions applicable to the manner in which any other public agency could exercise such powers or perform such duties, whether such agency is a party to this Agreement or not.

Section 5. Fiscal Year.

For the purposes of this Agreement, the term “Fiscal Year” shall mean the fiscal year as established from time to time by resolution of the Board, being, at the date of this Agreement, the period from July 1 to and including the following June 30, except for the first Fiscal Year which shall be the period from the date of this Agreement to June 30, 2004.

Section 6. Disposition of Assets.

At the end of the term hereof or upon the earlier termination of this Agreement as set forth in Section 2, after payment of all expenses and liabilities of the Authority, all property of the Authority both real and personal shall automatically vest in the Members in the manner and amount determined by the Board in its sole discretion and shall thereafter remain the sole property of the Members; provided, however, that any surplus money on hand shall be returned in proportion to the contributions made by the Members.

Section 7. Bonds.

From time to time the Authority shall issue Bonds, in one or more series, for the purpose of exercising its powers and raising the funds necessary to carry out its purposes under this Agreement.

The services of bond counsel, financing consultants and other consultants and advisors working on the projects and/or their financing shall be used by the Authority. The expenses of the Board shall be paid from the proceeds of the Bonds or any other unencumbered funds of the Authority available for such purpose.

Section 8. Bonds Only Limited and Special Obligations of Authority.

The Bonds, together with the interest and premium, if any, thereon, shall not be deemed to constitute a debt of any Member or pledge of the faith and credit of the Members or the Authority. The Bonds shall be only special obligations of the Authority, and the Authority shall under no circumstances be obligated to pay the Bonds except from revenues and other funds pledged therefor. Neither the Members nor the Authority shall be obligated to pay the principal of, premium, if any, or interest on the Bonds, or other costs incidental thereto, except from the revenues and funds pledged therefor, and neither the faith and credit nor the taxing power of the Members nor the faith and credit of the Authority shall be pledged to the payment of the 99 CC 10-06-2026 Searchable Packet
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principal of, premium, if any, or interest on the Bonds nor shall the Members or the Authority in any manner be obligated to make any appropriation for such payment.

No covenant or agreement contained in any Bond or related document shall be deemed to be a covenant or agreement of any Director, or any officer, employee or agent of the Authority in his or her individual capacity and neither the Board of the Authority nor any Director or officer thereof executing the Bonds shall be liable personally on any Bond or be subject to any personal liability or accountability by reason of the issuance of any Bonds.

Section 9. Accounts and Reports.

All funds of the Authority shall be strictly accounted for. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice and by any provision of any Indenture (to the extent such duties are not assigned to a trustee of Bonds).

The books and records of the Authority shall be open to inspection at all reasonable times by each Member.

The Treasurer of the Authority shall cause an independent audit to be made of the books of accounts and financial records of the Authority by a certified public accountant or public accountant in compliance with the provisions of Section 6505 of the Joint Exercise of Powers Act. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the Government Code of the State of California and shall conform to generally accepted auditing standards. When such an audit of accounts and records is made by a certified public accountant or public accountant, a report thereof shall be filed as a public record with each Member and also with the county auditor of each county in which a Member is located; provided, however, that to the extent permitted by law, the Authority may, instead of filing such report with each Member and such county auditor, elect to post such report as a public record electronically on a website designated by the Authority. Such report if made shall be filed within 12 months of the end of the Fiscal Year or Years under examination.

The Treasurer is hereby directed to report in writing on the first day of July, October, January, and April of each year to the Board and the Members which report shall describe the amount of money held by the Treasurer for the Authority, the amount of receipts since the last such report, and the amount paid out since the last such report (which may exclude amounts held by a trustee or other fiduciary in connection with any Bonds to the extent that such trustee or other fiduciary provided regular reports covering such amounts.) Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants in making an audit pursuant to this Section, shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for that purpose.

In any Fiscal Year the Board may, by resolution adopted by unanimous vote, replace the annual special audit with an audit covering a two-year period. 100
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Section 10. Funds.

Subject to the applicable provisions of any Indenture, which may provide for a trustee or other fiduciary to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds pursuant to the accounting procedures developed under Sections 3.C and 9, and shall make the disbursements required by this Agreement or otherwise necessary to carry out any of the provisions of purposes of this Agreement.

Section 11. Notices.

Notices and other communications hereunder to the Members shall be sufficient if delivered to the clerk of the governing body of each Member; provided, however, that to the extent permitted by law, the Authority may, provide notices and other communications and postings electronically (including, without limitation, through email or by posting to a website).

Section 12. Additional Members/Withdrawal of Members.

Qualifying public agencies may be added as parties to this Agreement and become Members upon: (1) the filing by such public agency with the Authority of an executed counterpart of this Agreement, together with a copy of the resolution of the governing body of such public agency approving this Agreement and the execution and delivery hereof; and (2) adoption of a resolution of the Board approving the addition of such public agency as a Member.

Upon satisfaction of such conditions, the Board shall file such executed counterpart of this Agreement as an amendment hereto, effective upon such filing.

A Member may withdraw from this Agreement upon written notice to the Board; provided, however, that no such withdrawal shall result in the dissolution of the Authority so long as any Bonds remain outstanding. Any such withdrawal shall be effective only upon receipt of the notice of withdrawal by the Board which shall acknowledge receipt of such notice of withdrawal in writing and shall file such notice as an amendment to this Agreement effective upon such filing.

Section 13. Indemnification.

To the full extent permitted by law, the Board may authorize indemnification by the Authority of any person who is or was a Director or an officer, employee of other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a Director or an officer, employee or other agent of the Authority, against expenses, including attorneys fees, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful and, in the case of an action by or in the right of the Authority, acted with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.
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Section 14. Contributions and Advances.

Contributions or advances of public funds and of the use of personnel, equipment or property may be made to the Authority by the Members for any of the purposes of this Agreement. Payment of public funds may be made to defray the cost of any such contribution or advance. Any such advance may be made subject to repayment, and in such case shall be repaid, in the manner agreed upon by the Authority and the Member making such advance at the time of such advance. It is mutually understood and agreed to that no Member has any obligation to make advances or contributions to the Authority to provide for the costs and expenses of administration of the Authority, even though any Member may do so. The Members understand and agree that a portion of the funds of the Authority that otherwise may be allocated or distributed to the Members may instead be used to make grants, loans or provide other financial assistance to governmental units and nonprofit organizations (e.g., the Foundation) to accomplish any of the governmental unit’s or nonprofit organization's purposes.

Section 15. Immunities.

All of the privileges and immunities from liabilities, exemptions from laws, ordinances and rules, and other benefits which apply to the activity of officers, agents or employees of Members when performing their respective functions within the territorial limits of their respective public agencies, shall apply to the same degree and extent to the Directors, officers, employees, agents or other representatives of the Authority while engaged in the performance of any of their functions or duties under the provisions of this Agreement.

Section 16. Amendments.

Except as provided in Section 12 above, this Agreement shall not be amended, modified, or altered, unless the negative consent of each of the Members is obtained. To obtain the negative consent of each of the Members, the following negative consent procedure shall be followed: (a) the Authority shall provide each Member with a notice at least sixty (60) days prior to the date such proposed amendment is to become effective explaining the nature of such proposed amendment and this negative consent procedure; (b) the Authority shall provide each Member who did not respond a reminder notice with a notice at least thirty (30) days prior to the date such proposed amendment is to become effective; and (c) if no Member objects to the proposed amendment in writing within sixty (60) days after the initial notice, the proposed amendment shall become effective with respect to all Members.

Section 17. Effectiveness.

This Agreement shall become effective and be in full force and effect and a legal, valid and binding obligation of each of the Members on the date that the Board shall have received from two of the Initial Members an executed counterpart of this Agreement, together with a certified copy of a resolution of the governing body of each such Initial Member approving this Agreement and the execution and delivery hereof.
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Section 18. Partial Invalidity.

If any one or more of the terms, provisions, promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, each and all of the remaining terms, provisions, promises, covenants and conditions of this Agreement shall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law.

Section 19. Successors.

This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, no Member may assign any right or obligation hereunder without the consent of the other Members.

Section 20. Miscellaneous.

This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

The section headings herein are for convenience only and are not to be construed as modifying or governing the language in the section referred to.

Wherever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld.

This Agreement shall be governed under the laws of the State of California.

This Agreement is the complete and exclusive statement of the agreement among the Members, which supercedes and merges all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct, between and among the Members relating to the subject matter of this Agreement.
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IN WITNESS WHEREOF, the City of Cupertino has caused this Agreement to be executed and attested by its duly authorized representatives as of the ___ day of _____________, 2025.

Member:

CITY OF CUPERTINO
By
Name: Tina Kapoor
Title: City Manager
ATTEST:

By
Name: Lauren Sapudar
Title: City Clerk
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1 CITY ATTORNEY’S OFFICE

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

CITY COUNCIL INFORMATIONAL MEMORANDUM
September 30, 2026
To: Cupertino City Council
From: Floy Andrews, Interim City Attorney and John Cardenas, Special Counsel Re: Procedures and Municipal Protections under California Municipal Finance Authority Conduit Bond Issuances
Summary: This Informational Memorandum describes the California Municipal Finance Authority (CMFA) procedural protections afforded local governments when issuing conduit bonds for affordable housing and community projects. The CMFA operates as an independent public entity, ensuring its financial debts and legal obligations remain completely separate from its member cities. Because bonds are issued on a conduit basis, the private borrower bears sole repayment responsibility, insulating the host city from any debt liability. Member cities maintain the right to unilaterally withdraw from the agreement at any time without facing exit fees or trailing financial obligations.

A. CMFA Authority and Conduit Bond Issuance Processes
The CMFA is a joint exercise of powers authority and public entity of the State of California. It functions to assist local governments, non-profit organizations, and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living, economic development, and charitable activities throughout California. A joint exercise of powers agreement (JPA) under the California Government Code Section 6500 (and following) provides authority for the CMFA to issue bonds for a project; the host municipality must execute this agreement to become a formal member.

Acting as a conduit issuer means the CMFA serves as the municipal issuer of the bonds on behalf of a private entity (the Borrower) to secure financing for community projects like affordable housing. The bonds are the sole responsibility of the Borrower, meaning the city incurs no debt, financial liabilities, or legal obligations for the repayment of the bonds. 105
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2 To facilitate a conduit issuance, the host city must conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA), adopt an approving resolution, and execute the Joint Exercise of Powers Agreement. Outside of these specific administrative approvals, no further participation or activity from the City Council is required.

Becoming a member and approving conduit financing carries no cost or financial exposure to the city. Instead, through its conduit issuance activities, the CMFA shares a portion of its received issuance fees back with the member community's general fund, which can be used for any lawful municipal purpose.

B. JPA Agreement
The JPA for the CMFA is published and publicly accessible. As a public entity formed under the California Joint Exercise of Powers Act (California Government Code Section 6500 et seq.), its founding documents are public records.

Because hundreds of California cities, counties, and special districts have joined the CMFA, the standard CMFA Joint Exercise of Powers Agreement is routinely published online within city council meeting packets, staff reports, and public archives. The foundational January 1, 2004 agreement is also published as part of historical regulatory disclosures, such as public comments submitted to the U.S. Securities and Exchange Commission (SEC).

The standard, published text of the JPA agreement relating to the CMFA contains clauses that explicitly protect member municipalities and clarify operational flexibility. The JPA agreement contains explicit language establishing that the CMFA is an independent public entity distinct from the cities and counties that join it. The text provides that the debts, liabilities, and obligations of the CMFA do not constitute debts, liabilities, or obligations of the individual member agencies executing the agreement.1 Because bonds are issued on a "conduit" basis on behalf of private borrowers (such as affordable housing developers), the text ensures that the bonds are the sole responsibility of the borrower.2 Member cities have no financial, legal, or contractual obligation for the repayment of any bonds issued through the authority.

Unlike other regional infrastructure JPAs that lock member agencies into long-term funding obligations, the CMFA agreement is designed with flexibility to accommodate hundreds of municipal members across the state. Any member city, county, or special district can unilaterally withdraw from the agreement at any time by providing written notice to the Board of Directors of the CMFA. There are no financial exit fees or trailing funding obligations 1 Section 3.A of the agreement text explicitly states: "said Authority shall be a public entity separate and apart from the Members. Its debts, liabilities and obligations do not constitute debts, liabilities or obligations of any Members.".
2 Section 8 ("Bonds") of the CMFA JPA Agreement provides that the principal, premium, or interest on issued conduit bonds shall never constitute an obligation of the member municipalities or require municipal appropriations.
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3 associated with leaving. The withdrawal of a hosting city does not disrupt or accelerate any conduit bonds already actively issued and outstanding; those agreements remain tied to the specific project borrower independently.

The agreement itself is streamlined (typically only a few pages long) and contains the following structural sections:

1. Recitals: Citing California Government Code Sections 6500 et seq. as the authorizing framework.

2. Section 1 (Purpose): Defining the goal of assisting with taxable and tax-exempt financing.

3. Section 2 (Term & Termination): Detailing how the authority persists until dissolved by all members.

4. Section 3 (Authority Creation & Powers): Outlining the formal separation of the authority from its members.

5. Section 7 (Individual Capacity Liability): Explicitly stating that no board members, directors, or officers can be held personally liable for bond issuances.

6. Execution Page: A basic signatory block for the joining city's Mayor, City Clerk, and approved City Attorney.

C. Conduit Instruments
Participating municipalities have absolutely zero financial obligation, debt liability, or repayment responsibility for any bonds issued through the CMFA. The bonds are issued as "conduit" instruments, meaning the private developer or nonprofit organization (the Borrower) is solely responsible for the repayment of the principal, interest, and premium. All financing and bond documents must contain clear, explicit disclaimers stating that the bonds are not obligations of the city or the State of California, but are to be paid for entirely from funds provided by the Borrower.

Participation in the CMFA does not count against a city's constitutional debt or appropriations limits. It does not impact the municipal credit rating, nor can any city general funds or taxpayer revenues ever be used or attached to satisfy a bond default. The city's role is administrative in hosting the mandatory public hearing and passing a local resolution to allow the financing to proceed inside its borders.

D. Fee Mechanics
A participating city incurs no fees or costs for the bond issuance. The operational framework of the CMFA provides that participating local governments are entirely insulated from any administrative or upfront expenses. All legal fees, underwriter fees, project design costs, and general closing costs are paid directly out of the bond proceeds or funded up-front by the private developer/borrower. There is no fee for a city to sign the Joint Exercise of Powers Agreement, nor is there a charge for holding the required TEFRA public hearing. 107
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4 The CMFA charges an issuance fee to the developer and legally shares 25% of that fee directly back with the host city's General Fund. This cash grant can be used for any lawful municipal purpose. The mechanism and percentage breakdown of the fee-sharing program are published directly within the authority's official scheduling policies and municipal disclosures. The obligation to distribute a portion of the closing proceeds to local governments is codified in the California Municipal Finance Authority Fee Schedule Notes.3 When a city files a Conduit Financing Staff Report to join or authorize an issuance, the required text describes how proceed revenue arrives at the local treasury.
.
_____________________________________
Prepared by: John Cardenas, Special Counsel
Reviewed by: Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
3 Note 1 of the Official CMFA Fee Schedule Document states:"CMFA shares 25% of all Issuance Fees with the Host Municipality for each transaction." The CMFA website states, "The CMFA shares 25% of all issuance fees directly with its member communities. In addition, a grant equal to 25% of the issuance fee is made to the California Foundation for Stronger Communities (“CFSC”) to fund charities designated by the member communities."
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CITY OF CUPERTINO
Agenda Item
26-15393 Agenda Date: 10/6/2026
Agenda #: 10.

Subject: Introduction of Municipal Code Amendments to Chapter 19.08 (Definitions) to revise definitions of “attic” and “garages” and establish a new definition of “square footage” to align with state law, and associated Environmental Review. (Applicant: City of Cupertino; Location: City-wide) (Continued from September 15, 2026)
Introduce and conduct the first reading of Ordinance No. 26-2286: “An Ordinance of the City Council of the City of Cupertino to Amend Municipal Code Chapter (Definitions)”.

CITY OF CUPERTINO Page 1 of 1 Printed on 9/30/2026
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OFFICE OF THE CITY ATTORNEY

CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3120
CUPERTINO.GOV

CITY COUNCIL STAFF REPORT
Meeting: October 6, 2026
Subject
Introduction of Municipal Code Amendments to Chapter 19.08 (Definitions) to revise definitions of “attic” and “garages” and establish a new definition of “square footage” to align with state law, and associated Environmental Review. (Applicant: City of Cupertino; Location:

City-wide)
Recommended Action
Introduce and conduct the first reading of Ordinance No. 26-____: “An Ordinance of the City Council of the City of Cupertino to amend Municipal Code Chapter 19.08 (Definitions).” Background
This Ordinance was discussed by the Planning Commission on July 28, 2026. The Planning Commission moved to adopt the resolution, voting 5-0, recommending that the City Council adopt the Ordinance with minor edits.

The City’s evaluation of recent housing developments under state law required calculations for residential to office space ratios, which highlighted a gap between the City’s Municipal Code and state law. Under the streamlined ministerial approval process of California Government Code Section (GCS) 65913.4 (Senate Bill 35), the City is required to verify that at least two-thirds of the project's total "square footage" is designated for residential use. However, because the Municipal Code lacks a formal, standalone definition for "square footage," staff has historically relied on the existing code definition for "floor area" in its Municipal Code Section 19.08.030(F) for this calculation.

While substituting "floor area" for “square footage” served as a functional way forward in previous project evaluations, it exposed areas of the Municipal Code where further clarification would provide greater certainty thereby avoiding potentially costly and time consuming litigation to decide the result. State housing laws and local development standards calculate and use spatial metrics differently. The reliance on a "floor area" framework, designed for standard local zoning rather than state-mandated ministerial pathways, particularly for multi-family and mixed-use developments, underscores the need for a distinct definition of "square footage" for future state-streamlined applications.
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To prevent future interpretation conflicts and ensure code consistency, the City Attorney recommends adding a clear definition for "square footage" and updating definitions of "attic" and "garage, residential." Modifying these secondary definitions ensures that unconditioned or auxiliary residential zones, such as low-clearance attic spaces and specialized residential parking structures, are explicitly accounted for or exempted correctly depending on the specific calculation metric applied. These revisions leave unchanged the applicability of the definition to the type of residential housing (e.g., single family, townhome, duplex). Codifying these revisions will align Cupertino’s local ordinances with evolving state housing legislations, streamline the review of complex development programs, and protect the City from future administrative ambiguities.

Reasons for Recommendation and Available Options
The primary reason for adopting a standalone definition of "square footage" is to align local regulations with state housing laws like GCS 65913.4 and 65589.5 without disrupting local planning metrics. Currently, Cupertino’s local definition of "floor area" is designed to regulate floor area ratios (FAR) and "development allocations" for commercial, office, and hotel spaces.

Development allocation is a system built into the City’s General Plan which establishes a citywide floor area for non-residential development rather than a parcel level FAR. A project is granted development allocation if analysis determines that environmental impacts, particularly transportation impacts, are adequately addressed. Environmental impacts of development are not impacted by accessory facilities such as structured or surface parking – since these facilities by themselves do not generate traffic. Therefore, accessory parking facilities were not intended to be included within these metrics and modifying the existing local "floor area" definition to accommodate state streamlining ratios would compromise the City's longstanding environmental and zoning frameworks.

A specific definition of "square footage" resolves ambiguities regarding the treatment of mixeduse spaces and aboveground parking structures. State law, including the Building Code, requires that square footage calculations cannot include underground spaces, but it remains permissive regarding aboveground parking facilities. The proposed definition complies with the requirements of state law. The proposed definition additionally clearly establishes how areas like shared elevators, hallways, and lobbies are proportionally allocated based on the ratio of exclusively residential to non-residential spaces to dispel any ambiguity. Note that this change would apply only to new applications after its effective date.

Amending the definition of a "residential garage" is necessary to correctly distinguish the intended application of this definition. The original intent of including residential garages in floor area calculations was to ensure that development within lower density neighborhoods would be limited in size and mass. However, because the existing code vaguely defines a garage as any enclosed building storing motor vehicles, residential structured parking facilities (garages) were technically "included" in the project's floor area, while it excluded any nonresidential structured parking facilities – which was not the intent of the definition. The revised definition explicitly narrows a residential garage to single level or detached structures serving small-scale residential units, and excluding parking structures with drive aisles and maneuvering areas from the standard floor area calculation – aligning with the original intent of the municipal code.
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Finally, refining the definition of an "attic" provides objective physical parameters to prevent using unconditioned spaces to manipulate floor area metrics. The current definition simply identifies an attic as an unconditioned and uninhabitable area between the ceiling and the roof.

The proposed update adds enforceable criteria: an attic must be unfinished, lack permanent stairs from the floor below, and feature no operable windows. If an upper-level space fails to meet these parameters, it cannot be categorized as an exempt attic and must instead be fully counted as both floor area and square footage, ensuring accurate building volume calculations.

Based on the findings outlined above, the recommended action is to adopt the draft Ordinance.

California Environmental Quality Act
This Ordinance is not a project under the requirements of the California Quality Act of 1970, together with related State CEQA Guidelines (collectively, “CEQA”) because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment. CEQA applies only to projects which have the potential of causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the amendments to the City Code would have no or only a de minimis impact on the environment. The foregoing determination is made by the City Council in its independent judgment.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

TBD Item:

Yes.

City Work Program (CWP) Item/Description
None.

Council Goal:

Good Governance; Housing; Quality of Life
_____________________________________
Prepared by: John Cardenas, Special Counsel
Reviewed by: Piu Ghosh, Planning Manager
Floy Andrews, Interim City Attorney
Luke Connolly, Assistant Director of Community Development Benjamin Fu, Director of Community Development
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
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A – Draft Ordinance (clean version)
B – Redline Changes to Ordinance
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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO TO AMEND MUNICIPAL CODE CHAPTER 19.08 (DEFINITIONS)
The City Council of the City of Cupertino finds that:

1. The City Council of the City of Cupertino held a duly noticed public hearing on October 6, 2026, and after considering all testimony and written materials provided in connection with that hearing introduced this ordinance and waived the reading thereof.

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

SECTION 1. Adoption.

The Cupertino Municipal Code is further amended as set forth in Attachment A.

SECTION 2: Severability and Continuity.

The City Council declares that each section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this ordinance. If any section, sub-section, paragraph, sub-paragraph, sentence, clause or phrase of this ordinance is held invalid, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of such portion, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino Municipal Code, these provisions shall be construed as continuations of those provisions and not as an amendment to or readoption of the earlier provisions.

SECTION 3: Effective Date.

This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937.
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SECTION 4: Publication.

The City Clerk shall give notice of adoption of this Ordinance as required by law.

Pursuant to Government Code Section 36933, a summary of this Ordinance may be prepared by the City Clerk and published in lieu of publication of the entire text. The City Clerk shall post in the office of the City Clerk a certified copy of the full text of the Ordinance listing the names of the City Council members voting for and against the ordinance.

INTRODUCED at a regular meeting of the Cupertino City Council on October 6, 2026 and ENACTED at a regular meeting of the Cupertino City Council on October 6, 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
APPROVED AS TO FORM:

Floy Andrews, City Attorney Date
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ATTACHMENT A - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CUPERTINO TO AMEND
MUNICIPAL CODE CHAPTER 19.08 (DEFINITIONS)

19.08.030 Definitions.
"Attic" means an area between the ceiling and roof of a structure, which is unconditioned (not heated or cooled) and uninhabitable of any story and roof of a structure that does not have operable windows or permanent stairs, directly from the floor below, and is unfinished, unconditioned (not heated or cooled), and not habitable.
"Garage, Residential" means an accessory building (completely enclosed) or an attached building used primarily for the storage of motor vehicles a completely enclosed space for the storage of motor vehicles that serves a single-family home, townhome, duplex, triplex, or residential unit. A residential garage shall be located on a single floor within the primary structure or a detached accessory structure. “Garage, residential” does not include any structured parking facilities or facilities which incorporate drive aisles, and/or turning or maneuvering area for motor vehicles.
“Square footage,” for the purpose of applicability of state law to a development project, means the total area measured from the exterior surface of the exterior walls of all primary and accessory structures. Each floor of a structure shall be included. Areas that are not enclosed by walls must be included if they fall within the horizontal projection of both the roof above and the floor below. Square footage excludes attics and all underground spaces, including underground parking facilities. In a mixed-use development, square footage shall be attributed to residential or non-residential use based on a detailed description of each area’s specific function. Areas accessible to both residential and non-residential uses (such as shared elevators, hallways, or lobbies) shall be allocated proportionally based on the ratio of exclusively residential to exclusively non-residential square footage within the development.
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Ordinance No.

Page

ATTACHMENT B - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CUPERTINO TO AMEND
MUNICIPAL CODE CHAPTER 19.08 (DEFINITIONS)
The sections of the Cupertino Municipal Code set forth below are amended or adopted as follows:

Text added to existing provisions is shown in bold double-underlined text (example) and text to be deleted in shown in strikethrough (example). Text in existing provisions is not amended or readopted by this Ordinance. Text in italics is explanatory and is not an amendment to the Code.

1. Amendments to Title 19 concerning Land Use

19.08.030 Definitions.
"Attic" means an area between the ceiling and roof of a structure, which is unconditioned (not heated or cooled) and uninhabitable of any story and roof of a structure that does not have operable windows or permanent stairs, directly from the floor below, and is unfinished, unconditioned (not heated or cooled), and not habitable. "Garage, Residential" means an accessory building (completely enclosed) or an attached building used primarily for the storage of motor vehicles a completely enclosed space for the storage of motor vehicles that serves a single-family home, townhome, duplex, triplex, or residential unit. A residential garage shall be located on a single floor within the primary structure or a detached accessory structure. “Garage, residential” does not include any structured parking facilities or facilities which incorporate drive aisles, and/or turning or maneuvering area for motor vehicles.
“Square footage,” for the purpose of applicability of state law to a development project, means the total area measured from the exterior surface of the exterior walls of all primary and accessory structures. Each floor of a structure shall be included. Areas that are not enclosed by walls must be included if they fall within the horizontal projection of both the roof above and the floor below. Square footage excludes attics and all underground spaces, including underground parking facilities. In a mixed-use development, square footage shall be attributed to residential or non-residential use based on a detailed description of each area’s specific function. Areas accessible to both residential and non-residential uses (such as shared elevators, hallways, or lobbies) shall be allocated proportionally based on the ratio of exclusively residential to exclusively non-residential square footage within the development.
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CITY OF CUPERTINO
Agenda Item
26-15408 Agenda Date: 10/6/2026
Agenda #: 11.

Subject: Consider a Use Permit, Tentative Map, Architectural and Site Approval, and Tree Removal Permit for the construction of a 35-unit townhome development to replace an existing strip mall (Coach House). The project utilizes Senate Bill 330 (SB 330) and provisions of State Density Bonus law. (Application No(s): U-2025- 005, ASA-2025-014, TM-2025-006, TR-2025-030; Applicant: Joshua Vrotsos, Dividend Homes; Location: 1655 S.

De Anza Boulevard and 7357 Prospect Road; APNs: 366 10 061 and 366 10 126)

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

2. Make the required findings of No Net Loss (SB 166); and

3. Approve the project by:
a. Adopting Resolution No. 26-104 approving Use Permit (U-2025-005) (Attachment A); b. Adopting Resolution No. 26-105 approving Architectural & Site Approval Permit (ASA-2025-014) (Attachment B);
c. Adopting Resolution No. 26-106 approving Vesting Tentative Map (TM-2025-006) (Attachment C); and d. Adopting Resolution No. 26-107 approving Tree Removal Permit (TR-2025-030) (Attachment D).

CITY OF CUPERTINO Page 1 of 1 Printed on 9/30/2026
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COMMUNITY DEVELOPMENT DEPARTMENT

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

CITY COUNCIL STAFF REPORT
Date: October 6, 2026
Subject
Consider a Use Permit, Tentative Map, Architectural and Site Approval, and Tree Removal Permit for the construction of a 35-unit townhome development to replace an existing strip mall (Coach House). The project utilizes Senate Bill 330 (SB 330) and provisions of State Density Bonus law. (Application No(s): U-2025-005, ASA-2025-014, TM-2025-006, TR-2025-030; Applicant:

Joshua Vrotsos, Dividend Homes; Location: 1655 S. De Anza Boulevard and 7357 Prospect Road; APNs: 366 10 061 and 366 10 126)
Recommended Action

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

2. Make the required findings of No Net Loss (SB 166); and

3. Approve the project by:
a. Adopting Resolution No. 26-XXX approving Use Permit (U-2025-005) (Attachment A); b. Adopting Resolution No. 26-XXX approving Architectural & Site Approval Permit (ASA2025-014) (Attachment B); c. Adopting Resolution No. 26-XXX approving Vesting Tentative Map (TM-2025-006) (Attachment C); and
d. Adopting Resolution No. 26-XXX approving Tree Removal Permit (TR-2025-030) (Attachment D).

Executive Summary
This report outlines a project proposed by Dividend Homes for a 35-unit housing development on an existing commercial parcel. The report covers the applicable State laws, including the Housing Accountability Act, Housing Crisis Act, and Density Bonus law, and local standards applicable to the project. The report also includes a summary of the Planning Commission hearing on September 8, 2026, including public comment, and the Planning Commission’s discussion. Finally, the report summarizes the findings necessary for the Council to act on the project.
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2 Discussion
Project Data
General Plan Land Use
Designation
South De Anza Special Area
Commercial/Office/Residential
Special Planning Area South Saratoga-Sunnyvale Road Conceptual Zoning Plan Zoning Designation P (CG, RES 5-15)
Lot Area 2 Acres (Gross) | 1.67 Acres (Net)
Allowed/Required Proposed
Maximum Density Up to 15 units per acre 26.5 units per acre (density bonus)
Height of Structures 30' (General Plan) 44’-9” (waiver) Slope Line 1:1 waiver
Setbacks
Front
(S. De Anza Blvd) 35’ from face of curb
Bldgs. 2 & 4 (waiver)
1st: 27’-5”
2nd: 29’-5”
3rd: 29’-5”
South Property Line
(Prospect Rd.) 20’ from property line Bldg. 5 (waiver): 7’ -6” Interior Side 6’ from property line
Bldgs. 5
1 st: 18’-0”
2 nd: 16’-6”
3 rd: 16’-6”
Bldgs. 1-4
1 st: 13’-0”
2 nd: 11’-6”
3 rd: 11’-6”
West Property Line
1 st Story: 15-20’
2 nd Story: 30’
3 rd Story: 50’
Bldg. 5
1 st: 36’-0”
2 nd: 34’-0"
3 rd: 34’-0”
(waiver)
Bldgs. 1 & 3
1 st: 46’-6”
2 nd: 48’-6”
3 rd: 48'-6”
(waiver)
Landscape Strip(s)
Landscape Setback (from
curb line at S. De Anza) 35-50’ 27'-5” (waiver)
Landscape Parkway
(between curb & sidewalk
along S. De Anza)
10-15’ 8’ (waiver)
Landscape setback (from
curb line at Prospect Rd.) 25’ 20.6’ (waiver)
Landscape Buffer
(Between New Development
& Existing Residential
Uses)
15-20’ Varying between 5-9’ (waiver)
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3 Background
The 1.67 net-acre project site is
comprised of two parcels (1655 S. De
Anza Boulevard and 7357 Prospect
Road) that form an “L” shape that
abuts two streets, S. De Anza
Boulevard and Prospect Road. The
project site is bounded by the city of
San José to the east and the city of
Saratoga to the south.

The site shares a property line with
Cupertino Corporate Center to the
north3. A Valero Gas Station and the
ICAN Intervention Center for Autism Needs are situated adjacent to the site‘s L-shape on the 1 The applicable General Plan can be found online at: https://www.cupertino.gov/YourCity/Departments/Community-Development/Planning/General-Plan/General-Plan-CommunityVision 2 The applicable version of the South Saratoga-Sunnyvale Road Conceptual Zoning Plan can be found online at: https://www.cupertino.gov/files/assets/city/v/1/departments/documents/communitydevelopment/planning/land-use-plans/south-sartogasunnyvale-conceptual-zoning-plan.pdf 3 A separate housing development project is proposed on this site and is under review by the City.

Usable Open Space
Private 60 square feet per unit and no
dimension less than 6 feet
316 – 515 square feet per unit on
roof decks with no dimensions
less than 6’
Project Consistency with:

General Plan1
Consistent under SB 330 and state Density Bonus law. Density Bonus law is utilized to allow for additional units over the base density. A Density Bonus waiver is requested for building height.

A Density Bonus concession is requested to not include any nonresidential uses.

Special Area Plan2
Consistent under state Density Bonus law. Density bonus waivers are requested for South Saratoga-Sunnyvale Road Conceptual Zoning Plan standards related to landscape setbacks, building height, and public improvements.

Zoning
Consistent under SB 330 and state Density Bonus law. Density Bonus waivers are requested for lot coverage, floor area ratio, building height, setbacks, and design requirements.
*The project utilizes the provisions of SB 330 (as discussed later in the report), and therefore only those development standards, regulations, and fees in place at the time of the SB 330 Preliminary Application submittal may be applied to the project.

Figure 1: Project site outlined in red.

PR
R1-6
R3/TH)
P(CG,
RES, 5-15)
P(CG
R3, TH)
Site
Prospect Rd.

City of
San José
S. De Anza Blvd
N
City of
Saratoga
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4 northwest corner of Prospect and De Anza, and a mix of commercial uses are located across both Prospect Road and De Anza Boulevard, respectively, in the cities of Saratoga and San José. Singlefamily residential uses are located immediately to the west of the site (see Figure 1).

The property is currently developed with a 13,500-square-foot, single-story commercial building with a surface parking lot and ornamental landscaping. The building is divided into four tenant spaces, two of which are vacant, and two that are currently occupied by KML Pharmacy and Four Seasons Seafood (market). In June 2023, the City approved a mixed-use development (TM-2021- 003, ASA-2021-004, DP-2021-002, U-2021-001, and TR-2022-006) consisting of 34 residential units (a mix of 23 condominiums and 11 townhomes) and 7,482 square feet of commercial space on the property. Despite the approval, the applicant for that project did not proceed with development.

On September 12, 2025, the City received an SB 330 Preliminary Application from the current applicant, Dividend Homes, to redevelop the site. The applicant subsequently submitted a formal project application on September 29, 2025, within 180 days of the submission of the SB-330 Preliminary Application, which granted it certain vesting privileges under State law. This includes vesting of the development standards of the General Plan, South Saratoga-Sunnyvale Road Conceptual Zoning Plan Area, and Planned Development “P” zoning designation, as they were in September of 2025.

The proposed project consists of 35 townhome-style condominiums dispersed into five, sevenplex structures. As a 100% residential project, review is limited by several applicable State laws, including the Housing Accountability Act, the Housing Crisis Act (SB330), and Density Bonus Law (see Attachment E).

While the first two State laws apply because the project meets the definition of a “housing development project,” State density bonus law (SDBL) applies because the project includes qualifying amounts of affordable housing. Twenty percent4 of the base density residential units, will be affordable to either very low and moderate/median-income households, consistent with the City’s Below Market Rate (BMR) requirements, making the project eligible for all applicable benefits of SDBL. Furthermore, because the applicant is providing three very-low income BMR units, the project is eligible for a thirty-five percent density increase over the base density, allowing the applicant to construct up to ten additional units on site, for a total of 36 units. An applicant may also elect to utilize waivers, concessions, or the reduced parking standards allowed under SDBL. This project includes a request for 11 waivers and one concession from applicable standards of the General Plan, South Saratoga-Sunnyvale Road Conceptual Zoning Plan, and Zoning Code. These requests are discussed later in this report.

Project Proposal
The 35-unit townhome-condominium development consists of five, three-story 7-plex buildings.

Each unit will include fourth-floor access to rooftop decks. The units, inclusive of garage space, 4 The project is required to include 5.2 BMR units (20% of 26 units). In accordance with the City’s BMR program, 5 units will be provided on site, and the remaining 0.2 units will be addressed through payment of an in-lieu fee.
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5 vary in size, with townhomes ranging between 2,137 square feet and 2,704 square feet. The proposal includes five affordable units, the details of which, including affordability levels and locations, are discussed later in the staff report.

Based on the scope of project, the following entitlements are required: a Use Permit, Architectural and Site Approval, a Tree Removal Permit, and a Vesting Tentative Map.

Architecture and Site Design
As shown in Figure 2, the site is accessed
by two driveways – one off S. De Anza
Boulevard and one off Prospect Road. Two
buildings front S. De Anza Boulevard, on
either side of the main entryway, with two
additional buildings located behind them.

Each of these four structures is oriented
perpendicular to S. De Anza Boulevard.

The fifth building, with a north-south
orientation, fronts Prospect Road (see
Attachment F: Site Plan and Renderings5).

Each of the proposed buildings offer the
same mixture of unit types, ranging from
three- to four-bedroom homes with twocar garages, and additional parking provided on-site. The garages are accessed via driveways, minimizing their visual impact from public streets. Larger open space areas are provided between Buildings 1 and 2 and between Buildings 3 and 4.

The architectural design is consistent across all buildings. The buildings reflect a contemporary modern design, with flat roofs and rectangular shapes. The buildings incorporate a stacked second and third story cantilever, approximately two feet over the width of the building’s first floor, while the length of the first floor extends two feet past the second and third stories above.

The buildings feature two different material and color schedules to enhance the visual interest of the site – Styles A and B. Style A incorporates vertical panels, light stone masonry veneer, black fiber cement panels and smooth stamped stucco. Style B incorporates vertical and horizontal panels, with a brick masonry veneer and black fiber cement panels. The materials and colors are intended to accentuate changes in building planes and add visual interest the façades. 5 Due to limitations of Government Code § 65103.5, the distribution of copyrighted material associated with the review of development projects is limited. Plans have been emailed under separate cover to allow the Commissioners to review the proposed plans. Commissioners and Councilmembers cannot share plans with outside parties, including community members. The public is able to make an appointment with the Planning Division to view these plans at City Hall.

Median /Moderate
BMR Units
Very Low Income
BMR Units
Figure 2: Site Plan
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6 Buildings 1, 3 and 5 have facades that face the western property line that is shared with existing single-family residences. The second and third floors of Building 5 are setback 34 feet from the western property line. The first floors of Buildings 1 and 3 are set back 46.5 feet, with an increased step back on the second and third floors of 2 feet from the western property line.

Each unit includes a roof deck to provide private outdoor space, with some units also offering second-floor balconies. To reduce privacy impacts, the existing mature landscaping that extends the length of the western property line will be retained and protected in place. Additional privacy planting is proposed to fill gaps that currently exist. All rooftop decks on Building 5 are proposed along the eastern side of the roof footprint, with the western side of the roof reserved for future solar panel use. Only two units located in Buildings 1 and 3 (Units 1 and 15) will have westernfacing views from the roof decks. However, second and third floors of both of these buildings are setback 48.5 feet from the western property line and will have the existing and proposed landscaping to help obscure off-sight views. None of the proposed second-story balconies are located on the western façades that face adjacent single-family residences.

The trees proposed for the interior of the site are a mixture of evergreen and deciduous species, providing both year-round flowers and greenery. The primary water classification for new trees and landscape on the site fall within low to medium water usage. Shrubs will be utilized to screen all above ground utilities, to the extent permitted by PG&E. The interior pedestrian concrete walkways will have a decorative stone stamped design in warm earthtone colors. The common areas will be landscaped and planted with shade trees, with ornamental arbors and bollard lighting along the paseos along the perimeter.

An eight-foot-tall sound wall will be constructed between the new townhomes and commercial businesses located south and south-east of the project. In addition, a new seven foot “good neighbor” fence will be provided along the north property line and the existing fence and retaining wall will remain in place along the west property line, buffering the single-family residences. Retaining this western fence will help preserve the existing densely-planted Italian cypress trees on the project site and the redwood trees and private landscaping located on the adjacent residential lots.

The public art location is proposed at the north-east corner of the site, within the proposed 14’-5” front setback. A 10-foot by 10-foot public access easement has been dedicated on the tentative map for the future public art piece location. The project also includes proposed improvements to the public right-of-way with 5-foot-wide detached sidewalks and a landscape buffer along both South De Anza Boulevard and Prospect Road.
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7 Analysis
General Plan Compliance
The proposed project is a residential development, consistent with the site’s General Plan Land Use Designation of Commercial/Office/Residential6. The General Plan designation allows a maximum residential density of 15 dwelling units per acre, which equates to 26 units for the 1.67- acre site. The applicant, however, is using State Density Bonus Law by providing very-low income units on site to increase the permitted density to 26.5 units per acre, allowing for a total of 35 townhome units. This density bonus is discussed in further detail later in this staff report.

The City’s General Plan Land Use Element Strategies LU-1.3.1 (1) and LU-22.2 require all mixeduse areas with commercial zoning to provide retail as a substantial component of a project. Since the proposed project consists entirely of residential development, the applicant is requesting the use of a Density Bonus concession to eliminate the requirement that retail be a substantial component of the project. The applicant is also requesting a Density Bonus waiver from the General Plan’s maximum building height requirements. The requests for the Density Bonus concession and waivers are discussed in further detail in the Density Bonus section below.

South De Anza Special Area — Non-Residential Development Allocation The proposed housing development would replace the commercial uses on site. Upon the demolition of any structure, if it is a category with a specified Development Allocation in the General Plan, the square footage of the building is added to the available Development Allocation in the applicable Special Area. Therefore, upon demolition, the commercial building’s square footage will be returned to the S. De Anza Special Area, Commercial Development Allocation.

The General Plan Land Use Element, Table LU-1: Citywide Non-Residential Development Allocation for 2014-2040, indicates that the S. De Anza Special Area is currently built out to the maximum allowed commercial square footage of 352,283 square feet. Therefore, while there is currently no commercial development allocation in this Special Area, 13,485 square feet, the area of the existing commercial building, would become available for future development in this area when the building is demolished.

Staff has evaluated the project’s consistency with the General Plan and concludes that, based on the conformance with the General Plan Land Use designation for the site, the general alignment of design with applicable General Plan requirements, notwithstanding the limitations of State law, and the absence of environmental impacts as analyzed in the Notice of Exemption memo (see Environmental Review section below), the proposed project supports several of the City’s General Plan goals, as outlined below.
6 While the General Plan requires the development of the property using the Commercial Centers and Mixed-use Village concept, when a residential development is proposed, state law, under SB330 prohibits the City from applying any non-objective standards. The General Plan language describing the Mixed-use Village concept is subjective and therefore, cannot be applied to the project. In addition, since this project utilizes the provision of Density Bonus, the developer would have the option to invoke unlimited waivers to propose the 100% residential project, as designed.
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8 • Policy LU-1.1: Land Use and Transportation. Focus higher land use intensities and densities within a half-mile of public transit service, and along major corridors. • Policy LU-2.2: Pedestrian-Oriented Public Spaces. Require developments to incorporate pedestrian-scaled elements along the street and within the development such as parks, plazas, active uses along the street, active uses, entries, outdoor dining and public art. • Strategy LU-7.1.2: Gateways. Promote placement of visible artwork in gateways to the city.
• Strategy LU-3.3.10: Buildings Taller Than 30 Feet in Neighborhoods. Allow construction of buildings taller than 30 feet in Neighborhoods only if the buildings abut an arterial or major collector or if allowed by State law.
• Policy LU-22.3: Parcel Assembly. Highly encourage assembly of parcels to resolve the fragmented and narrow lot pattern and encourage high-quality development with adequate buffers for neighborhoods.
• Policy LU-22.4: Streetscape and Connectivity. South De Anza is envisioned as a walkable, bikeable boulevard with sidewalks, street trees and roadway improvements for bike lanes and pedestrian crossings. Side streets are also envisioned with pedestrian and bicycle improvements to ensure walkable connections from adjacent neighborhoods. • Policy LU-22.5: Shared Access. Since South De Anza is a heavily traveled route, properties in the same block should be connected with auto and pedestrian access through shared access easements to reduce impacts on the corridor.
• Policy LU-22.8: Neighborhood Buffer. Provide building transitions, setbacks and/or landscaping to buffer development from adjoining single- family residential uses. • Policy LU-27.8: Protection. Protect residential neighborhoods from noise, traffic, light, glare, odors and visually intrusive effects from more intense development with landscape buffers, site and building design, setbacks and other appropriate measures. • Policy INF 2.4.2 Development. Require undergrounding of all utility lines in new developments and highly encourage undergrounding in remodels or redevelopment of major projects.
• Strategy HE-2.3.7: Density Bonus Ordinance. The City will encourage use of density bonuses and incentives, as applicable, for housing developments which include:
o Five percent of the total units of a housing development, for rental or sale to very low income households, as defined in Section 50105 of the Health and Safety Code.

Conceptual Zoning Plan and Municipal Code compliance
The project site is in the South Saratoga-Sunnyvale Road Conceptual Zoning Plan7 area. The City’s Conceptual Plan establishes building heights, setbacks, and other development requirements for projects within this area. The project incorporates some site design requirements, which are 7 See the South Sunnyvale-Saratoga Conceptual Zoning Plan. 126
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9 consistent with the remaining applicable requirements of the South Saratoga-Sunnyvale Road Conceptual Zoning plan, such as requirements for first floor building heights, first and second story step backs, vehicular circulation, tree protection, and sidewalk improvements.

The site is zoned P (CG, RES 5-15) – Planned Development with General Commercial and Residential uses at a density between 5-15 units per acre. The “P” zoning designation is described in Cupertino Municipal Code, Chapter 19.80, Planned Development Zones. The “P” zoning designation is intended to provide a means of guiding land development within the city that is uniquely suited for planned coordination of use and development. Where townhome style residential development is proposed in the “P” zoning district, and where the Specific Plan is silent, development must adhere to Townhome (TH) zoning regulations.

Parking
The City’s Municipal Code (Chapter 19.124) requires townhome projects to provide at least one parking space per unit. As with most new townhome proposals, the project includes two-car garages for each unit, providing a total of 70 garage parking spaces, where only 35 spaces are required onsite. Additionally, the project includes seven uncovered guest spaces, for a total of 77 parking spaces on site.

Tree Removal and Replacement
The arborist surveyed a total of 79 trees located on and directly adjacent to the project site. The project site contains 51 on-site trees and 28 off-site trees. The 28 off-site trees consist of one London Plane City street tree and 27 trees of various species located along shared property lines to the north, south, and west. The proposal includes the removal of 15 on-site development trees and 1 City street tree. The on-site tree removals include five Italian Cypress, one Chinese Photinia, and nine Hollywood Junipers.

An arborist report was prepared for the applicant by Davey Resource Group, Inc. and was peer reviewed by the City’s consultant, FocalPoint Arboriculture Consulting (Attachment G). The report and peer review concluded that 10 of the trees proposed for removal would be within the new driveway and drive aisle, four would be impacted by the location of the new five-foot-wide detached public sidewalk off Prospect Road, and two would be impacted by the new sound wall proposed between the commercial uses and new housing development and cannot be preserved or otherwise adequately protected during construction. The remaining 36 on-site development trees and 27 off-site trees are proposed to remain and will be protected in place during the project’s construction.

The applicant proposes to replace 15 development trees with 22 new on-site trees of various species. The existing street tree proposed to be removed will be replaced with two new street trees located in the new landscape parkstrip along Prospect Road. All replacement trees will be either 24 or 36-inch box in size, consistent with Municipal Code tree replacement requirements.

The City’s requirements for tree replacement for Protected Trees, consistent with Cupertino Municipal Code Section 14.18.160 (A), are as follows:
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10 Protected Tree Replacement Table
Tree
ID # Common Name DBH (inches)
Tree Replacement
CMC 14.18.160 Proposed Tree Replacement
293 Italian Cypress 7.7" 1- 24" box (1) 24"-box Eastern Redbud 294 Italian Cypress 11.1" 1- 24" box (1) 24"-box Eastern Redbud 295 Italian Cypress 14.9" Two 24" box trees
or One 36" box tree (2) 24"-box Flaxleaf Paperbark
296 Italian Cypress 18.4" Two 24" box trees
or One 36" box tree (2) 24"-box Flaxleaf Paperbark
301 Italian Cypress 17" Two 24" box trees
or One 36" box tree (2) 24"-box Flaxleaf Paperbark
302 Chinese Photinia 5,6,4,4" Two 24" box trees
or One 36" box tree (2) 24"-box Flaxleaf Paperbark
303 Hollywood Juniper 31.4" Two 24" box trees
or One 36" box tree
(1) 36" box tree Arbutus
Marina
304 Hollywood Juniper 14.3" Two 24" box trees
or One 36" box tree (2) 24"-box Flaxleaf Paperbark
305 Hollywood Juniper 12.6" Two 24" box trees
or One 36" box tree (2) 24"-box Flaxleaf Paperbark
306 Hollywood Juniper 16.8" Two 24" box trees
or One 36" box tree
(1) 36" box tree Arbutus
Marina
307 Hollywood Juniper 13.5" Two 24" box trees
or One 36" box tree (2) 24"-box Flaxleaf Paperbark
308 Hollywood Juniper 18" Two 24" box trees
or One 36" box tree
(1) 36" box tree Arbutus
Marina
309 Hollywood Juniper 20.5" Two 24" box trees
or One 36" box tree
(1) 36" box tree Arbutus
Marina
310 Hollywood Juniper 20.4" Two 24" box trees
or One 36" box tree
(1) 36" box tree Arbutus
Marina
311 Hollywood Juniper 23.1" Two 24" box trees
or One 36" box tree
(1) 36" box tree Arbutus
Marina
Total:
(28) 24" box trees or
(13) 36" box trees & (2) 24" box trees
or any combination thereof
(6) 36" box tree &
(16) 24" box trees
Vesting Tentative Map
The application for the Vesting Tentative Map includes the condominium subdivision of the two existing lots to create 35 condominium parcels for the proposed townhome units. The map also includes additional roadway and future reciprocal access easements between the subject site and the property located directly to the north (APN 366-10-133) to support vehicular and pedestrian ingress, egress, and emergency access between the two developments. The approval of a vesting tentative map confers a vested right to proceed with development in substantial compliance with 128
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11 the City's ordinances, policies, and standards in effect at the date the application was deemed complete.

Conditional Use Permit
The South Sunnyvale-Saratoga Conceptual Zoning Plan requires a Conditional Use Permit for new construction, redevelopment, or changes in the existing land use. Since the applicant proposes to demolish the existing commercial building to construct a new residential townhome development a Conditional Use Permit is included in this review to address the requirement.

Park Land Dedication
Under Cupertino Municipal Code Section 13.08.060(A), proposed developments containing 50 or fewer units shall pay an in-lieu fee for the required park land dedication based on Municipal Code Chapter 13.08 requirements. Per the applicable fee schedule8, the applicant is subject to pay $54,000 per unit, totaling $1,620,000, based on 30 new market-rate units. Consistent with the City’s Housing Element and Below Market Rate Mitigation Manual, the five proposed affordable units are exempt from paying parkland dedication fees.

Below Market Rate (BMR) Housing Program
The project includes five BMR units, or 20% of the 26 base density units. The project provides the required number of units, including those at deeper affordability levels. New owner-occupied developments, such as townhomes, are required to provide 20% of their BMR units at moderateand median-income levels. However, the proposed project provides three very-low-income units at a “deeper” level of affordability. As such, the applicant has met the requirements of the BMR Housing Mitigation Manual. The following table indicates the affordable unit count by affordability level:

Area Median Income (AMI) Range Provided Required
<50 % (Very-low income) 3 0
Between 50 and 80% (Low-income) 0 0
Between 80 and 100% (Median income) 1 3
Between 80-120 (Moderate income) 1 2
Total 5 5
A condition of approval has been included to ensure the recordation of a regulatory agreement with the City, prior to occupancy. This agreement will require that the designated BMR units be for sale to households at the specified income levels for a 99-year term.

Compliance with BMR Unit Comparability & Dispersion Requirement The BMR Manual requires that the BMR units be designed as follows:
• The units shall be comparable to market-rate units in terms of unit type, number of bedrooms per unit, quality of exterior appearance and overall quality of construction. 8 Due to the SB330 nature of the project, the payable Park Fees are those in effect as of September 2025. 129
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12 • The unit size should be generally representative of the unit sizes within the market-rate portion of residential project.
• Interior features and finishes in affordable units shall be durable, of good quality and consistent with contemporary standards for new housing.

The following table demonstrates the proposed units within the development buildings by income level, type, and size:
# of Units # of Bedrooms # of Bathrooms Average Unit Size BMR Units
2 3 3.5 2,704 square feet
3 3 3.5 2,137 square feet
Market-Rate
Units
13 3 3.5 2,137 square feet
5 3 2.5 2,449 square feet
2 4 3.5 2,704 square feet
5 4 3.5 2,645 square feet
5 4 3.5 2,638 square feet
The project has been determined to be consistent with the BMR Manual section 2.3.4. The affordable units will be dispersed throughout project, with only one building not having any BMR units, and will be comparable to the market rate units in both unit type and size.

Additionally, there is no indication on the plans that the exterior finishes of the BMR units will be any different from the market rate units. As such, it is expected that they will be of the same quality; however, as allowed in the BMR manual, the affordable units may have different interior finishes.

Density Bonus
The applicant proposes to increase the permitted density on site from the maximum 15 dwelling units per acre to 26.5 dwelling units per acre by utilizing State Density Bonus Law (SDBL). By providing three very low-income units on site the applicant is eligible to construct up to 35% over the base density permitted under the General Plan. The three very low-income units make up approximately 11% of the 26-base density units, making the project eligible for a 35% density bonus. This equates to 10 bonus9 units on site, allowing the applicant to construct up to 36 units in total. In this housing development application, the applicant has proposed to construct 35 townhome units.

Density Bonus Waivers and Concessions
The project is eligible for Density Bonus waivers and concessions consistent with the City of Cupertino Municipal Code Chapter (CMC) 19.56 Density Bonus and SDBL. The project includes requests for 11 waivers.
9 State Density Bonus Law, Government Code § 65915 (q) Each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number. The Legislature finds and declares that this provision is declaratory of existing law.
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13 Section 19.56.070 of the City’s Density Bonus Ordinance (“Findings") requires that, before approving an application which includes a request for a density bonus, waivers, or reduction in parking standards, the decision-making body must determine that the proposal is consistent with SDBL by making the following findings10, as applicable:

1. That the housing development is eligible for the density bonus being requested as well as any incentives or concessions, waivers or reductions in parking standards that are requested.

2. That the development standard(s) for which the waiver(s) are requested would have the effect of physically precluding the construction of the housing development with the density bonus and incentives or concessions permitted, if a waiver was not requested.

The City may not deny a waiver of a development standard that would physically preclude the construction of the project as it is designed, unless it is found that the waiver or reduction would have a specific, adverse impact upon health or safety, for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact, or would have an adverse impact on any real property that is listed in the California Register of Historical Resources.

Waivers Requested
As a density bonus project, the applicant may submit proposals for an unlimited number of waivers, or reduction of development standards, that would have the effect of physically precluding the construction of the project, as designed (Government Code Section 65915(e)). As previously noted, a city may not deny a proposed project based on the theory that another project, with a similar number of units, might be designed differently and accommodated without waivers of development standards.

The applicant has requested 11 waivers to increase floor area and building height, reduce setbacks and landscape buffers, and to modify required site and building design standards. These waivers are itemized and outlined in further detail in Attachment H.

Concession Request
As a density bonus project with at least 10% of its units reserved for sale to very-low-income households11, the applicant may submit requests for up to two concessions. Concessions allow an applicant to deviate from development regulations when such regulations have the potential to make the project economically infeasible to build. The applicant has requested one concession, as follows:

1. General Plan Land Use Element Strategies LU-1.3.1 (1) and LU-22.2 Land Use Element Strategy LU-1.3.1 (1) states that “all mixed-use areas with commercial zoning will require retail as a substantial component.” Strategy LU-22.2 states that 10 Government Code § 65915 (d)(4): The city, county, or city and county shall bear the burden of proof for the denial of a requested concession or incentive.
11 The applicant proposes that 11% of the base units be deed restricted to households at very-low-income levels. State law specifies that developments which provide at least 10 percent of the base units for very low-income households are eligible for up to two incentives or concessions (Government Code § 65915(d)(2)(B)).
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14 “[South De Anza Special Area will remain predominantly] General commercial and retail uses, with limited commercial office, office and residential uses.” As the project site is located in the South De Anza Special Area, in a mixed-use zoning district (i.e.

P(CG, Res 5 - 15)), it is required to provide retail as a substantial component of the project. Therefore, to accommodate the proposed 100% residential development the applicant is requesting that this standard not be applied through the use of a Density Bonus concession. The applicant noted that “providing commercial uses [on site] would negatively impact the financial viability of the project. Based on the current commercial real estate market, commercial [use] is not a viable alternative. Furthermore, the introduction of commercial uses on the site and its associated parking would reduce the amount of land left for the development of the residential portion of the site.” Therefore, eliminating the dedicated retail, office or other commercial space would result in identifiable and actual cost reductions to provide affordable housing costs.

No Net Loss Discussion (SB166)
California Government Code Section 65863 (No Net Loss Law) requires cities to ensure development opportunities remain available to accommodate the City’s regional housing need allocation (RHNA), especially for lower- and moderate- income households by maintaining adequate sites to accommodate the unmet RHNA for each income category. Through the 6th Cycle Housing Element’s adoption in May 2024, the City’s projected net new housing units on this site in Table B4-2: Pending Projects (also referred to as “pipeline projects”). Proposed under a previous application, the project consisted of a mixed-use development of 34 residential units and 7,482 square feet of commercial space. The City included in the RHNA the number of units, by income category, that were expected to be developed on the site at that time. While the site is not limited to the commercial square footage and housing density proposed under the previous application, the City is nonetheless required to evaluate the project’s impact on expected housing production under Government Code Section 65863.

Under No Net Loss Law, at the time of a project’s approval, the decision-making body must make the following findings:

1. That the remaining sites identified in the Housing Element are adequate to meet the jurisdiction’s remaining RHNA for the planning period, by income category.

2. A quantification of the remaining unmet need for the jurisdiction’s RHNA at each income level and the remaining capacity of sites identified in the Housing Element, to accommodate that need by income level.

In the event the City is unable to make the findings of No Net Loss, the City must either concurrently with, or within 180 days of approval of a housing development project at a lower density or different mix of housing affordability, identify another Priority Housing Site(s) or increase the density of an existing Priority Housing Site(s) to ensure that adequate sites are available to accommodate its RHNA.

The City is able to make the findings of No Net Loss with the approval of this project. The Housing Table B4-2: Pending Project Table estimated under the previous application, a total of 132
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15 thirty-four new housing units, inclusive of one moderate12 unit and three lower income units, would be developed on this site. The new development application proposes a total of thirty-five net new units, and provides one additional moderate income level unit, for a total of two Moderate units and three very-low income units. The new project meets the requirements of the City’s BMR Housing Mitigation Manual and allows the project to utilize SDBL.

Other Department/Agency Review
The City’s Building Division, Public Works Department, Environmental Services Division, Transportation Division, VTA, Cupertino Sanitary District, and the Santa Clara County Fire Department have reviewed and conditioned the project.

Environmental Review
California Environmental Quality Act (CEQA)
The applicant requested that the development be reviewed in accordance with Assembly Bill (AB) 130, signed into law and effective on June 30, 2025, and codified in Public Resources Code (PRC) Section 21080.66. This law exempts qualifying infill housing development from CEQA review, creating a new statutory exemption. This exemption applies to any required permits, entitlements, or other discretionary approvals for a broad range of housing types. The attached CEQA Exemption Memorandum (Attachment I) demonstrates that the proposed project meets the requirements of PRC Section 21080.66 and is organized as follows:
• Infill Criteria. The project’s consistency with the allowed housing development type defined in PRC Section 21080.66(a), subdivisions (1) through (5) and (8). • Environmental Criteria. The project’s consistency with the individual environmental requirements pursuant to PRC Section 21080.66(a), subdivisions (6) and (7). • Tribal Cultural Resources. The project’s consistency with the tribal notification and outreach requirements pursuant to PRC Section 21080.66(b). • Hazardous Materials. The project’s consistency with the requirements for the identification and treatment of hazardous materials pursuant to PRC Section 21080.66(c). • Other Requirements. The project’s consistency with the Labor Code requirements and eligibility of a housing development project for a density bonus, incentives or concessions, waivers or reductions of development standards, and reduced parking ratios pursuant to PRC Sections 21080.66(d) and (e), respectively.

As analyzed in Section 3.2 of the attached CEQA Exemption Memorandum, Public Resources Code Section 21080.66, the proposed project meets the criteria for statutory exemption, including providing a Phase I Environmental Site Assessment (see Attachment J). Accordingly, this document finds that a Notice of Exemption is appropriate for the proposed project pursuant to CEQA Guidelines Section 15062.

City Standard Environmental Requirements
In October 2019, the City adopted Chapter 17.08 of the Municipal Code which outlines standard environmental requirements to address the potential impacts of construction projects on areas of 12 “Moderate” designation, for purposes of state law, includes both Moderate- and Median-income units. 133
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16 environmental concern, including air quality, hazardous materials, biological resources, cultural resources, water quality, noise, paleontological resources and availability of utilities. Chapter

17.08 also requires the City to conduct a third-party peer review of any applicant- provided reports, with the applicant bearing all associated costs. For this project, the applicant provided a Phase I and Phase II Environmental Site Assessment (ESA), in accordance with Chapter 17.08.

The resultant third-party peer review of Phase I and Phase II ESA reports concluded that there were no hazardous materials that require remediation (see Attachment J). In addition to the requirement for an ESA, Chapter 17.08 requires that the applicant comply with standard conditions of approval related to Biological Resources, Cultural Resources, Noise, Air Quality, which have been incorporated into the draft resolutions.

Public Outreach and Noticing
The following table is a summary of the noticing done for this project:

Notice of Public Hearing, Site Notice & Legal Ad Agenda ▪ Site Signage (14 days prior to hearing)
▪ Legal ad placed in newspaper (at least 10 days prior to the hearing)
▪ Public hearing notices were mailed to property owners within 500 feet of the project site (10 days prior to hearing) ▪ Posted on the City’s official
notice bulletin board (five
days prior to hearing)
▪ Posted on the City’s website
(five days prior to hearing)
The applicant completed community outreach to residents and property owners on June 11, 2026.

The two existing tenants are on month-to-month leases and were notified of the property owner’s intent to redevelop the site through the previous mixed-use development application submitted to the City in 2021.

In addition, City staff has conducted business outreach to the existing tenants and is engaged in assisting with relocation assistance by identifying and sharing information on available retail spaces for lease within the city.

Public Comment
Prior to this staff report being drafted, staff received two comments related to the project, which are attached as Attachment K. One of the comments was written in support of the project and the other comment requested information about the project’s status.

Planning Commission Review
On September 8, 2026, the Planning Commission conducted a public hearing regarding the proposed project. The Commissioners asked questions, which staff and the applicant responded to, about several topics, including project noticing, impacts to traffic, the proposed connection to the property to the north, standards and requirements within the Conceptual Plan, Phase I ESA report and conclusions, landscaping and screening requirements, and concerns about the loss of retail on the site. Staff and the applicant provided additional information related to the proposed connection to the property to the north, noting that the connection would be made only once the northern property is developed and that the proposed connection is aligned with the City’s 134
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17 General Plan policies for inter-block connectivity and increased pedestrian access. Based on feedback from the Commission, the project’s transportation analysis has been included as Attachment L.

After discussion, the Planning Commission, with a 5-0 vote, adopted resolutions recommending that the City Council approve the project without modification.

Reasons for Recommendation and Available Options
Staff and the Planning Commission recommend approval of the project, as proposed, because the project and its conditions of approval support the findings for approval of the proposed project, consistent with the General Plan, South Sunnyvale-Saratoga Conceptual Zoning Plan, and Chapters 14.18, 18.16, 19.36, 19.40, 19.56, and 19.168 of the Cupertino Municipal Code.

Sustainability Impact
The project was reviewed by the Sustainability Division and the applicant completed the required Climate Action Plan Consistency Checklist. The project has been found to be exempt from CEQA through a statutory exemption and, therefore, it is expected that there will be no sustainability impact.

Fiscal Impact
A Fiscal Impact Analysis was provided by the applicant and peer reviewed by the City’s thirdparty consultant. The peer review of the Fiscal Impact Analysis concluded that the overall fiscal benefit is net positive. The net impact on the General Fund would be positive, resulting in $4,348 to $16,770 per year.

City Work Program (CWP) Item/Description
Not applicable.

Council Goal
Housing.

California Environmental Quality Act
As discussed in the Environmental Review section of this report (see above), the project is statutorily exempt from the California Environmental Quality Act (CEQA). _____________________________________
Prepared by: Emi Sugiyama, Senior Planner
Reviewed by: Luke Connolly, Assistant Director of Community Development Benjamin Fu, Director of Community Development
Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:

A. Draft Resolution for U-2025-005
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18 B. Draft Resolution for ASA-2025-014
C. Draft Resolution for TM-2025-006
D. Draft Resolution for TR-2025-030
E. Summary of Relevant State Law
F. Project Site Plan and Renderings
G. Arborist Report and Peer Review
H. Summary of Requested Density Bonus Waiver
I. CEQA Exemption Memorandum
J. Phase I Environmental Site Assessment
K. Public Comments
L. Transportation Analysis
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RESOLUTION NO.

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

APPROVING A USE PERMIT FOR A NEW RESIDENTIAL
DEVELOPMENT PROJECT CONSISTING OF 35-TOWNHOMECONDOMINIUM UNITS ON TWO CONTIGUOUS PARCELS TOTALING 1.67-ACRES, INCLUDING TREE REMOVALS AND
REPLACEMENTS LOCATED AT 1655 S. DE ANZA BLVD.

AND 7357 PROSPECT ROAD; APNS: 366-10-061 and -126
SECTION I: PROJECT DESCRIPTION
Application No.: U-2025-005
Applicant: Joshua Vrotsos (Dividend Homes)
Property Owner: Prospect Venture, LLC
Location: 1655 S. De Anza Blvd. & 7357 Prospect Road;
APNs: 366-10-061 and -126
SECTION II: FINDINGS FOR A USE PERMIT:

WHEREAS, the City of Cupertino received an application for a Use Permit as described in Section I of this resolution; and
WHEREAS, the project is determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(1) of the CEQA Guidelines because the proposed project would meet the requirements of the Public Resources Code (PRC) Section 21080.66(a); and
WHEREAS, on September 8, 2026, the Planning Commission held a duly noticed public hearing to receive staff’s presentation and public testimony, and to consider the information contained in the Exemption Memorandum along with all staff reports, other pertinent documents, and all written and oral statements received prior to and at the public hearing; and
WHEREAS, on September 8, 2026 the Planning Commission recommended on a 5-0 vote that the City Council approve the Use Permit (U-2025-005) in substantially similar form to the Resolution presented (Resolution No. 2026-20), approve the Architectural and Site Approval Permit (ASA-2025-014) in substantially similar form to the Resolution presented (Resolution No. 2026-19), approve the Vesting Tentative Map (TM-2025-006) in substantially similar form to the Resolution presented (Resolution No. 2026-21), and 137
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approve the Tree Removal Permit (TR-2025-030), in substantially similar form to the Resolution presented (Resolution No. 2026-22); and
WHEREAS, all necessary public notices having been given as required by the City of Cupertino Municipal Code and the Government Code, and the Planning Commission held at least one public hearing in regard to this application, and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Resolution; and
WHEREAS, the applicant has met the burden of proofrequired to support the application for a Use Permit; and
WHEREAS, the City Council finds as follows with regard to this application:

1. The proposed development, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience; The project is consistent with the land use designations in the General Plan, Zoning Ordinance, and the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. The project is conditioned to comply with the Environmental Protection Standards of Cupertino Municipal Code. Chapter 17.04. The project has access to all utilities including sewer, water etc. The project must meet all Fire and Building Code requirements, which will be further reviewed prior to issuance of building permits. Therefore, the project will not be detrimental or injurious to properties or improvements in the vicinity, and will not be detrimental to public health, safety, general welfare, or convenience.

2. The proposed development and/or use will be located and conducted in a manner in accord with the Cupertino Comprehensive General Plan, underlying zoning regulations, and the purpose of this title and complies with the California Environmental Quality Act (CEQA).

An SB330 Preliminary Application was submitted for this project in September 2025, locking in the development standards in effect at that time. The General Plan land use designation for the property is Commercial/Office/Residential with a maximum residential density of 15 dwelling units per acre. The residential use is proposed at 26.5 dwelling units per acre and is consistent with the General Plan density as the appropriate amount of affordable housing incorporated in the project allows the project additional or “bonus” units through state density bonus law. The applicant is requesting waivers for the development of this site to allow residential uses, with reduced setbacks, increased building height, reduced building step-back heights (massing), increased FAR, and reduced landscape setbacks, than required or allowed, as the case may be, by the South Saratoga-Sunnyvale Road Conceptual Zoning Plan and the City’s Municipal Code standards. The proposed development has met 138
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all other applicable development standards of the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. The project is further conditioned to comply with the Environmental Protection Standards of Cupertino Municipal Code Chapter 17.04. In addition, under the CEQA Guidelines Section 15061(b)(1) (Statutory Exemption), the project has been found to be Statutorily Exempt from CEQA because the proposed project would meet the requirements of the Public Resources Code (PRC) Section 21080.66(a), as further documented in the memorandum prepared by the City’s environmental consultant, PlaceWorks. Therefore, the proposed development will be located and conducted in accordance with the General Plan and underlying zoning regulations and complies with the California Environmental Quality Act (CEQA).

NOW, THEREFORE, BE IT RESOLVED:

The application for a Use Permit, Application No. U-2025-005, is hereby approved, and that the conclusions upon which the findings and conditions specified in this Resolution are based and contained in the Public Hearing record concerning Application no. U-2025-005 as set forth in the Minutes of the City Council Meeting of October 6, 2026 Meeting, and are incorporated by reference as though fully set forth herein.

SECTION III: CONDITIONS ADMINISTERED BY THE COMMUNITY
DEVELOPMENT DEPT.

1. APPROVED EXHIBITS
Approval is based on the plan set entitled “1655 S De Anza Blvd Major Architectural and Site Approval Application Cupertino, CA” consisting of 74 sheets labeled as, P.1– P.5, A.1 – A.27, TM1.0, C2.0-C7.3, T1.0 - T1.4, L1.1 – L3.2, INT1, INT2, PrPM1, PrSL1 and PrSL2, drawn by Dahlin [Architect] Group, BKF [Civil] Engineering and Michael Arnone [Landscape Architect] + Associates, except as may be amended by conditions in this resolution.

2. ACCURACY OF PROJECT PLANS
The applicant/property owner is responsible to verify all pertinent property data including but not limited to property boundary locations, building setbacks, property size, building square footage, any relevant easements 139
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and/or construction records. Any misrepresentation of any property data may invalidate this approval and may require additional review.

3. CONCURRENT APPROVAL CONDITIONS
The conditions of approval contained in file nos. TM-2025-006, ASA-2025-014, and TR-2025-030 shall be applicable to this approval.

4. ANNOTATION OF THE CONDITIONS OF APPROVAL
The conditions of approval set forth shall be incorporated into and annotated on the first page of the building plans.

5. USE APPROVAL AND PROJECT AMENDMENTS
Approval is hereby granted to allow a change of use from commercial to residential; and for demolition and construction for a proposed new development per the Sunnyvale Road Conceptual Zoning Plan area COA (16)(b). The Planning Commission shall review amendments to the project considered major by the Director of Community Development.

6. DENSITY BONUS WAIVERS AND CONCESSIONS
As allowed through the state’s Density Bonus law, the project is eligible for two concessions/incentives and unlimited waivers, as approved via this permit.

The project is granted one concession and 11 waivers as requested and to the extent indicated on the approved project plans as follows:
a. Concession to allow a 100% residential development where a mixed use development is required; and
b. Waiver to deviate from the General Plan’s 1:1 Building Plane Slope Line Standard (Community Form Diagram, LU-2).
c. Waiver to exceed the 85% Floor Area Ratio standard (CMC 19.46.070(B)).; and
d. Waiver to exceed the 30-Foot Height Limitation (General Plan Figure LU2)).; and e. Waiver to exceed the three story Building Story Limit (COA 18(a) of the S.

Sunnyvale-Saratoga Conceptual Zoning Plan & CMC 19.46.070 TH Combining District); and
f. Waiver to reduce the required 35-foot Front Setback measured from curb at S. De Anza Blvd. and 20-foot Front Setback measured from property line on Prospect Road. (CMC 19.36.070(C)(1)); and
g. Waiver to not meet the Design Requirements of the zoning code(CMC

19.46.070(F)(1)).; and
h. Waiver to deviate from the Site & Building Design COA 17. of the S.

Sunnyvale-Saratoga Conceptual Zoning Plan, that requires buildings to be 140
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placed contiguous to the required landscape buffer outlined in COA 19(d); and
i. Waiver to reduce the required 15-20 foot Landscape buffer between new buildings and existing single-family residential areas in COA 19(d) of S.

Sunnyvale-Saratoga Conceptual Zoning Plan.; and
j. Waiver to reduce the minimum 50’ Building Step-back required in COA 18(c) South Sunnyvale-Saratoga Conceptual Zoning Plan for third floors; and
k. Waiver to reduce the required 35 foot landscape setback area on S. De Anza Blvd and 25 foot landscape setback area on Prospect Rd. in COA 19(a) and (c) of S. Sunnyvale-Saratoga Conceptual Zoning Plan.
l. Waiver to reduce the required 10-15 foot landscape parkway strip required on S. De Anza Blvd as a Public Improvement in CAO 24(c). of the S.

Sunnyvale-Saratoga Conceptual Zoning Plan.

7. CONSULTATION WITH OTHER DEPARTMENTS
The applicant is responsible to consult with other departments and/or agencies with regard to the proposed project for additional conditions and requirements. Any misrepresentation of any submitted data may invalidate an approval by the Community Development Department.

8. INDEMNIFICATION
As part of the application, to the fullest extent permitted by law, the applicant shall agree to indemnify, defend with the attorneys of the City’s choice, and hold harmless the City, its City Council, and its officers, employees, and agents (collectively, the “indemnified parties”) from and against any liability, claim, action, cause of action, suit, damages, judgment, lien, levy, or proceeding (collectively referred to as “proceeding”) brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant related to any Ordinance, Resolution, or action approving the project, the related entitlements, environmental review documents, finding or determinations, or any other permit or approval authorized for the project.

The indemnification shall include but not be limited to damages, fees, and costs awarded against the City, if any, and cost of suit, attorneys’ fees, and other costs, liabilities, and expenses incurred in connection with such proceeding whether incurred by the Applicant, the City, or the parties initiating or bringing such proceeding.

The applicant shall agree to (without limitation) reimburse the City its actual attorneys’ fees and costs incurred in defense of the litigation. Such attorneys’ fees and costs shall include amounts paid to the City’s outside counsel and 141
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shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the litigation reasonably incurred by City. The applicant shall likewise agree to indemnify, defend, and hold harmless the indemnified parties from and against any damages, attorneys’ fees, or costs awards, including attorneys’ fees awarded under Code of Civil Procedure section 1021.5, assessed or awarded against the indemnified parties. The Applicant shall cooperate with the City to enter a Reimbursement Agreement to govern any such reimbursement.

The Applicant shall agree to (without limitation) reimburse the City for all costs incurred in additional investigation or study of, or for supplementing, redrafting, revising, or amending, any document (such as an Environmental Impact Report, negative declaration, specific plan, or general plan amendment) if made necessary by proceedings challenging the project approvals and related environmental review, if the applicant desires to continue to pursue the project.

The Applicant shall agree that the City shall have no liability to the Applicant for business interruption, punitive, speculative, or consequential damages.

9. NOTICE OF FEES, DEDICATIONS, RESERVATIONS, OR OTHER

EXACTIONS
The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions.

Pursuant to Government Code Section 66020(d) (1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), has begun. If you fail to file a protest within this 90-day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6th day of October, 2026, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:
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SIGNED:

Kitty Moore, Mayor
City of Cupertino
Date
ATTEST:

Lauren Sapudar, City Clerk Date
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RESOLUTION NO.

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

APPROVING AN ARCHITECTURAL AND SITE APPROVAL PERMIT

FOR A NEW RESIDENTIAL DEVELOPMENT PROJECT
CONSISTING OF 35-TOWNHOME-CONDOMINIUM UNITS
ON TWO ADJACENT PARCELS TOTALING 1.67-ACRES,

INCLUDING TREE REMOVALS AND REPLACEMENTS,
LOCATED AT 1655 S. DE ANZA BLVD. AND 7357 PROSPECT ROAD; APNS: 366-10-061 & -126
SECTION I: PROJECT DESCRIPTION
Application No.: ASA-2025-014
Applicant: Joshua Vrotsos (Dividend Homes)
Property Owner: Prospect Venture, LLC
Location: 1655 S. De Anza Blvd. & 7357 Prospect Road;
APNs: 366-10-061 & -126
SECTION II: FINDINGS FOR ARCHITECTURAL AND SITE APPROVAL:

WHEREAS, the Planning Commission of the City of Cupertino received an application for an Architectural and Site Approval Permit as described in Section I of this resolution; and
WHEREAS, the project is determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(1) of the CEQA Guidelines because the proposed project would meet the requirements of the Public Resources Code (PRC) Section 21080.66(a); and
WHEREAS, on September 8, 2026, the Planning Commission held a duly noticed public hearing to receive staff’s presentation and public testimony, and to consider the information contained in the Exemption Memorandum along with all staff reports, other pertinent documents, and all written and oral statements received prior to and at the public hearing; and
WHEREAS, on September 8, 2026 the Planning Commission recommended on a 5-0 vote that the City Council approve the Use Permit (U-2025-005) in substantially similar form to the Resolution presented (Resolution No. 2026-20), approve the Architectural and Site Approval Permit (ASA-2025-014) in substantially similar form to the Resolution presented (Resolution No. 2026-19), approve the Vesting Tentative Map (TM-2025-006) in substantially similar form to the Resolution presented 144
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(Resolution No. 2026-21), and approve the Tree Removal Permit (TR-2025-030), in substantially similar form to the Resolution presented (Resolution No. 2026-22); and WHEREAS, all necessary public notices having been given as required by the City of Cupertino Municipal Code and the Government Code, and the Planning Commission held at least one public hearing in regard to this application; and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Resolution; and
WHEREAS, the applicant has met the burden of proof required to support the application for an Architectural and Site Approval Permit; and WHEREAS, the City Council finds as follows with regard to this application:

1. The proposal, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience;
The project is consistent with the land use designations in the General Plan, Zoning Ordinance, and the South Saratoga-Sunnyvale Road Conceptual Zoning Plan. The project is conditioned to comply with the Environmental Protection Standards of Cupertino Municipal Code. Chapter 17.04. The project has access to all utilities including sewer, water etc. The project must meet all Fire and Building Code requirements, which will be further reviewed prior to issuance of building permits. Therefore, the project will not be detrimental or injurious to properties or improvements in the vicinity, and will not be detrimental to public health, safety, general welfare, or convenience.

2. The proposal is consistent with the purposes of Chapter 19.168, the General Plan, any specific plan, zoning ordinances, applicable planned development permit, conditional use permits, variances, subdivision maps or other entitlements to use which regulate the subject property including, but not limited to, adherence to the following specific criteria:
a) Abrupt changes in building scale should be avoided. A gradual transition related to height and bulk should be achieved between new and existing buildings.

All five structures proposed are taller than the maximum height allowed by the General Plan and have reduced setbacks that are less than those required by the South Sunnyvale-Saratoga Conceptual Zoning Plan and the Municipal Code. The provisions of state law density bonus law allow the applicant to waive development standards which would otherwise preclude the applicant from building the project they designed since the proposed project includes specified amounts of affordable housing. The City does not have the ability to require changes to the proposed project to meet any of the development standards that they have requested waivers from. However, the proposed 145
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townhome development will incorporate on site landscaping, both on the interior and toward the exterior of the development, to provide partial visual screening of the proposed buildings, which will still comply with Fire Department emergency ingress/egress standards for access to second and third story windows. b) In order to preserve design harmony between new and existing building and in order to preserve and enhance property values, the materials, textures and colors of new building should harmonize with adjacent development by being consistent or compatible with design and color schemes with the future character of the neighborhoods and purposes of the zone in which they are situated. The location, height and materials of walls, fencing, hedges and screen planting should harmonize with adjacent development. Unsightly storage areas, utility installations and unsightly elements of parking lots should be concealed. The planting of ground cover or various types of pavements should be used to prevent dust and erosion, and the unnecessary destruction of existing healthy trees should be avoided. Lighting for development should be adequate to meet safety requirements as specified by the engineering and building departments and provide shielding to prevent spill-over light to adjoining property owners.

The design for each proposed structure is the same. The buildings reflect a modern design, with flat roofs and rectangular shape. The second and third stories cantilever approximately two feet over the footprint of the building’s first floor in all directions.

The materials and colors are strategically used to accentuate changes in planes, adding visual interest to each façade. The buildings utilize two different material and color schedules to enhance the visual interest on the site. Both styles incorporate fiber cement panels, stucco and offer changes in color to add interest. The trees proposed for the interior of the site are a mixture of evergreen and deciduous species, providing both year-round flowers and/or greenery. The primary water use classification for new trees and landscape on site is low to medium. Shrubs will be utilized to screen all above ground utilities, to the extent permitted by PG&E regulations. Lighting for the development will be reviewed as part of the project construction documents to ensure that they meet safety requirements while avoiding spill-over light to adjacent properties and must meet applicable Dark Sky standards. The proposed windows are consistent with the City’s bird-safe ordinance as well.
c) The number, location, color, size, height, lighting and landscaping of outdoor advertising signs and structures shall minimize traffic hazards and shall positively affect the general appearance of the neighborhood and harmonize with adjacent development; and
No signage is proposed as part of this project.
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d) With respect to new projects within existing residential neighborhoods, new development should be designed to protect residents from noise, traffic, light and visually intrusive effects by use of buffering, setbacks, landscaping, walls and other appropriate design measures.

Each unit includes a roof deck to provide private outdoor space, with some units with second-floor balconies. To reduce privacy impacts, the mature landscaping that extends the entire length of the western property line will be retained and protected in place; Additional privacy planting is proposed where openings exist. None of the proposed balconies are located on the western facing facades. All seven rooftop decks on building 5 have been located along the eastern side of the roof footprint, with the western side of the roof reserved for future solar use. Only two units, located in Buildings 1 and 3 respectively, (Units 1 and 15) will have western-facing views from the roof decks.

However, the decks are setback approximately 48.5 feet from the western property line.

Additionally, the existing and proposed landscaping will help obscure off-sight views.

The second and third floors of the three buildings, Buildings 1, 3 and 5, closest to the neighboring residences are setback between 34 feet and 48.5 feet from the western property line.

NOW, THEREFORE, BE IT RESOLVED:

The application for an Architectural and Site Approval, Application No. ASA-2025- 014, is hereby approved, and that the subconclusions upon which the findings and conditions specified in this Resolution are based and contained in the Public Hearing record concerning Application no. ASA-2025-014 as set forth in the Minutes of the City Council Meeting of October 6, 2026, and are incorporated by reference as though fully set forth herein.

SECTION III: CONDITIONS ADMINISTERED BY THE COMMUNITY
DEVELOPMENT DEPT.

1. APPROVED EXHIBITS
Approval is based on the plan set entitled “1655 S De Anza Blvd Major Architectural and Site Approval Application Cupertino, CA” consisting of 74 sheets labeled as, P.1– P.5, A.1 – A.27, TM1.0, C2.0-C7.3, T1.0 - T1.4, L1.1 – L3.2, INT1, INT2, PrPM1, PrSL1 and PrSL2, drawn by Dahlin [Architect] Group, BKF 147
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[Civil] Engineering and Michael Arnone [Landscape Architect] + Associates, except as may be amended by conditions in this resolution.

2. ACCURACY OF PROJECT PLANS
The applicant/property owner is responsible for verifying all pertinent property data including but not limited to property boundary locations, building setbacks, property size, building square footage, any relevant easements and/or construction records. Any misrepresentation of any property data may invalidate this approval and may require additional review.

3. CONCURRENT APPROVAL CONDITIONS
The conditions of approval contained in file nos. TM-2025-006, U-2025-005, and TR-2025-030 shall be applicable to this approval.

4. ANNOTATION OF THE CONDITIONS OF APPROVAL
The conditions of approval set forth shall be incorporated into and annotated on the first page of the building plans.

5. DEVELOPMENT APPROVAL
The project is granted approval to construct:
a. 35 townhomes, with 5 townhomes dedicated as units affordable to households as follows: one moderate income, one median-income, and three very low income.
b. 70 enclosed residential garage parking spaces;
c. 7 open guest parking spaces;
d. 35 enclosed residential garage bicycle spaces;
e. 4 short term bicycle spaces with racks? in the common area(s); f. Landscaping in designated locations with the use of the approved plant palate, including native and drought-tolerant plants;
g. Vegetated stormwater treatment facilities with the use of native plants; h. 327-515 square feet/per unit of private open space on second floor balconies and/or roof top decks;
i. 18,677 square feet of landscaped area;
j. Screened mechanical equipment;
k. Underground utilities;
l. Screening six-foot-tall “good neighbor” fence on the western property line and eight-foot-tall sound wall separating the proposed residential uses from existing commercial uses on the northern, southern and south-east property lines, in areas where required.
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6. DENSITY BONUS WAIVERS AND CONCESSIONS
As allowed through the state’s Density Bonus law, the project is eligible for two concessions and unlimited waivers, as approved via this permit. The project is granted one concession and 11 waivers as requested and to the extent indicated on the approved project plans, as follows:
a. Concession to allow a 100% residential development where a mixed-use development is required; and
b. Waiver to deviate from the General Plan’s 1:1 Building Plane Slope Line Standard (Community Form Diagram, LU-2).
c. Waiver to exceed the 85% Floor Area Ratio standard (CMC 19.46.070(B)).; and
d. Waiver to exceed the 30-Foot Height Limitation (General Plan Figure LU2)).; and e. Waiver to exceed the three-story Building Story Limit (COA 18(a) of the S.

19.46.070(F)(1)).; and
h. Waiver to deviate from the Site & Building Design COA 17. of the S.

Sunnyvale-Saratoga Conceptual Zoning Plan, that requires buildings to be placed contiguous to the required landscape buffer outlined in COA 19(d); and
i. Waiver to reduce the required 15–20-foot Landscape buffer between new buildings and existing single-family residential areas in COA 19(d) of S.

Sunnyvale-Saratoga Conceptual Zoning Plan.; and
j. Waiver to reduce the minimum 50’ Building Step-back required in COA 18(c) South Sunnyvale-Saratoga Conceptual Zoning Plan for third floors; and
k. Waiver to reduce the required 35-foot landscape setback area on S. De Anza Blvd and 25-foot landscape setback area on Prospect Rd. in COA 19(a) and (c) of S. Sunnyvale-Saratoga Conceptual Zoning Plan.
l. Waiver to reduce the required 10–15-foot landscape parkway strip required on S. De Anza Blvd as a Public Improvement in CAO 24(c). of the S.

Sunnyvale-Saratoga Conceptual Zoning Plan.
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7. DEVELOPMENT ALLOCATION
The approval of this project results in the reallocation (General Plan 2015-2040, LU-1) of 13,485 square feet of retail commercial back to the South De Anza Special Area.

8. AFFORDABLE UNITS
The Project is required to provide 5.2 BMR units (20% of 26 base units).

Pursuant to the City’s BMR program, 5 units will be provided on site, and 0.2 units will be paid in in-lieu fee. The project shall include 5 units affordable to households as follows: 1 median-income (80-100% of Area Median Income), and 1 moderate-income (100-120% of Area Median Income) and 3 very lowincome (Less than < 50% of Area Median Income) as determined by the City’s BMR Mitigation Manual.

9. BMR AGREEMENT
Prior to the recordation of a final map or issuance of any residential building permit, an affordable housing agreement shall be recorded against the property. The affordable housing agreement shall include, but not be limited to the following, in compliance with the BMR Housing Mitigation Manual:
a. Total number of BMR units, type, location (site map), square footage, number of bedrooms, and construction scheduling of market-rate and BMR units;
b. Provisions to ensure concurrent construction and completion of BMR units and market-rate units;
c. Affordability levels for each BMR unit;
d. Price for BMR units as provided for in the BMR mitigation manual; e. Provisions for income certification and screening of potential occupants of BMR units;
f. Restriction control mechanism;
g. Financing of ongoing administrative and monitoring costs; h. Other reasonably required provisions to implement the Affordable Housing Plan.

10. BMR UNIT TERMS OF AFFORDABILITY
Prior to occupancy, the proposed project shall record covenants that require the units to be sold at prices that are affordable to moderate and median levels for a period not less than 99 years from the date of first occupancy of the unit.

11. FINAL ARCHITECTURAL DETAILS & EXTERIOR BUILDING MATERIALS The final building exterior plan shall closely resemble the details shown on the original approved plans. The final building design and exterior treatment 150
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plans (including but not limited to details on exterior color, materials, architectural treatments, doors, windows, lighting fixtures, and/or embellishments) shall be reviewed and approved by the Director of Community Development prior to issuance of building permits and through an in-field mock-up of colors prior to application to ensure quality and consistency. Any exterior changes determined to be substantial by the Director of Community Development shall either require a modification to this permit or a new permit based on the extent of the change.

Future changes to the exterior building materials/treatments must be reviewed and approved by the Property Owner’s Association. However, any changes to the building materials that do not match the approved materials shall require an amendment to this permit or a new permit.

12. BICYCLE PARKING
The applicant shall provide bicycle parking and bike racks for the project in accordance with the approved plans and with the City’s Parking Regulations under Chapter 19.124 of the Cupertino Municipal Code.

13. BUILDING AND FIRE CODE
The applicant shall apply for and obtain building permits to allow the construction of the approved project. The applicant shall provide information and plans to allow the Building Official and the Fire Marshall or their designee that the proposed plans comply with Building and Fire Codes in effect at the time of application for a building permit.

14. PRE-CONSTRUCTION MEETING AND CONSTRUCTION MANAGEMENT PLAN
A demolition and construction management plan shall be submitted and reviewed prior to building permit issuance. Prior to commencement of construction activities, the applicant shall arrange for a pre-construction meeting with the pertinent departments (Building, Planning, and Public Works) to review the prepared construction management plan, to ensure that construction complies with the conditions of approval, staging of construction equipment is appropriate, tree protection measures are in place, public access routes are identified, and noise and dust control measures are established. The plan shall include but not be limited to the following:
a. Appropriate construction staging area
b. Hours of construction
c. Compliance with the City noise ordinance
d. Best management practices
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e. Staging of construction equipment shall not occur within 50 feet of any residential property.
f. Any other measures as determined to be appropriate by the Director of Community Development

15. DEMOLITION REQUIREMENTS
All demolished building and site materials shall be recycled to the maximum extent feasible subject to the Building Official. The applicant shall provide evidence that materials were recycled prior to issuance of final demolition permits.

16. GRADING AND CONSTRUCTION HOURS AND NOISE LIMITS
a. All grading activities shall be limited to the dry season (April 15 to October 1), unless permitted otherwise by the Director of Public works. b. Construction hours and noise limits shall be compliant with all requirements of Chapter 10.48 of the Cupertino Municipal Code. c. Grading, street construction, underground utility and demolition hours for work done more than 750 feet away from residential areas shall be limited to Monday through Friday, 7 a.m. to 8 p.m. and Saturday and Sunday, 9 a.m. to 6 p.m. Grading, street construction, demolition or underground utility work within 750 feet of residential areas shall not occur on Saturdays, Sundays, holidays, and during the nighttime period as defined in Section

10.48.053(b) of the Municipal Code.
d. Construction activities shall be limited to Monday through Friday, 7 a.m. to 8 p.m. and Saturday and Sunday, 9 a.m. to 6 p.m. Construction activities are not allowed on holidays as defined in Chapter 10.48 of the Municipal Code. Nighttime construction is allowed if compliant with nighttime standards of Section 10.48 of the Cupertino Municipal Code. e. Rules and regulations pertaining to all construction activities and limitations identified in this permit, along with the name and telephone number of an applicant appointed disturbance coordinator, shall be posted in a prominent location at the entrance to the job site. f. The applicant shall be responsible for educating all contractors and subcontractors of said construction restrictions.

The applicant shall comply with the above grading and construction hours and noise limit requirements unless otherwise indicated.

17. FORMATION OF A HOMEOWNER’S ASSOCIATION
A Homeowner’s Association shall be formed to maintain the common areas of the property. The Conditions, Covenants and Restrictions (CC&Rs) shall be 152
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reviewed and approved by the Director of Community Development and the City Attorney prior to recordation. The following terms shall be incorporated into the Association’s Conditions, Covenants and Restrictions:
▪ The members/board shall meet at a minimum of once/year. ▪ The Association dues shall cover:
o Maintenance of common area on the property, in compliance with the approved project and conditions of approval, including hardscaping, landscaping (including development trees) private streets, parking, landscaping and accessory facilities and amenities, such as trash bins/areas, common amenity areas, tree grates, outside trash bins, fences, etc.
o Building and site repair on a regular schedule, or as otherwise necessary, and building renovation and replacement as necessary to ensure that the property is maintained.
o Permits, including tree removal permits, required for maintenance and repair of facilities and other improvements in the common areas. ▪ Any changes to the CC&R’s must be reviewed and approved by the City. ▪ Disbanding of the Association shall require an amendment to the permit.

18. RECIPROCAL INGRESS/EGRESS EASEMENT
The applicant shall record an appropriate deed restriction running with the land, subject to approval of the City Attorney, for all parcels that share a common private roadway with, including the parcel to the north of the subject site. The deed restriction shall provide for necessary reciprocal ingress and egress easements to and from the affected parcels. The easements shall be recorded prior to final map recordation.

19. ROAD MAINTENANCE AGREEMENT
A reciprocal maintenance agreement shall be required for all parcels that share a common private roadway with one or more other parcels within the tract.

The agreement shall be recorded in conjunction with recordation of the final map and shall be subject to prior approval as to form and content by the City Attorney.

20. PUBLIC ACCESS REQUIREMENTS
In accordance with Mobility Element Policies M-2.5 and M-3.2 of the 2015-2040 Cupertino General Plan in effect in January 2024, the applicant shall maintain public access to the privately maintained streets and walkways where public access easements are shown on the Vesting Tentative Map. 153
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21. PUBLIC ART REQUIREMENT
Public art shall be provided for the project in accordance with General Plan Policy 2-66 and the City’s Public Art Ordinance (Chapter 19.148 of the Cupertino Municipal Code). The minimum expenditure for the artwork, including, but not limited to design, fabrication, and installation is one (1) percent of the construction valuation for valuation in excess of $100 million.

The project pro forma shall be provided to the City to confirm the project budget. The public art plans (including location and design) shall be reviewed by the Fine Arts Commission during the building permit stage, in advance of final occupancy. Once approved by the Fine Arts Commission, the public artwork shall be installed to the satisfaction of the City prior to final occupancy.

In the event the developer or property owner determines that the placement of artwork on a particular property may not be feasible, the developer or property owner may apply to the City for an in-lieu payment alternative as indicated in Chapter 19.148 of the Cupertino Municipal Code, subject to review of the Fine Arts Commission and the City Council. The in-lieu payment shall be 1.25% of the construction valuation.

22. PUBLIC ART MAINTENANCE REQUIREMENT
In accordance with the requirements of Municipal Code Chapter 19.128, the property owner shall maintain approved public artwork in good condition continuously after its installation, as determined appropriate by the City.

Maintenance shall include all related landscaping, lighting, and upkeep, including the identification plaque. Artwork required or approved cannot be removed, except for required maintenance or repair, unless approved by the City; at which time the City may require replacement or relocation of the artwork. In the event that the artwork is relocated in the public right-of-way, a maintenance agreement with the City shall be required.

23. SETBACK AND LANDSCAPE AREAS
Approved setback and landscaped areas shall remain free and clear of any accessory structures that have not been approved as part of this project.

24. FENCING

1. Fences and sound walls must end at the face of buildings and may not extend past the face of buildings fronting S. De Anza Blvd. and Prospect Road.

2. Existing fencing that is leaning and/or is in poor condition along the western property line must be repaired prior to building permit issuance.

3. No fencing shall be constructed between units.
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25. PRIVACY LANDSCAPE
Tree IDs 2, 3, 4, 252 - 261 are neighboring trees located on private properties that extend along the western property line that is shared with existing singlefamily uses. The neighboring trees consist of (5) Australian Brush Cherry (syzygium paniculatum) at 35 feet tall and (8) Coast Redwoods (sequoia sempervirens) ranging from 40 to 60 feet tall. The neighboring trees may serve as privacy landscape in-lieu of on-site privacy plantings in these locations (refer to sheet T-1.0 Existing Tree Map in the approved plans). In the event that the privacy planting be removed, die or damaged in the future, the Townhome HOA shall provide replacement planting(s) on site in the same location(s), subject to approval of the City of Cupertino.

26. RESIDENTIAL SCREENING COVENANT
The property owner shall record a covenant on this property to inform future property owners of the residential screening measures and tree protection requirements consistent with the approved plans and reference these in the Property Owner Association documentation. The precise language will be subject to approval by the Director of Community Development. Proof of recordation must be submitted to the Community Development Department prior to final occupancy of the residence.

27. LANDSCAPE INSTALLATION REPORT
The project is subject to all provisions delineated in the Landscape Ordinance (CMC, Chapter 14.15). A landscape installation audit shall be conducted by a certified landscape professional after the landscaping and irrigation system have been installed. The findings of the assessment shall be consolidated into a landscape installation report.

The landscape installation report shall include but is not limited to: inspection to confirm that the landscaping and irrigation system are installed as specified in the landscape and irrigation design plan, system tune-up, system test with distribution uniformity, reporting overspray or run-off that causes overland flow, and preparation of an irrigation schedule.

The landscape installation report shall include the following statement: “The landscape and irrigation system have been installed as specified in the landscape and irrigation design plan and complies with the criteria of the ordinance and the permit.”

28. LANDSCAPE AND IRRIGATION MAINTENANCE
Per the Landscape Ordinance (CMC, Chapter 14.15), a maintenance schedule shall be established and submitted to the Director of Community Development 155
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or his/her designee, either with the landscape application package, with the landscape installation report, or any time before the landscape installation report is submitted.
a. Schedules should take into account water requirements for the plant establishment period and water requirements for established landscapes. b. Maintenance shall include, but not be limited to, the following: routine inspection; pressure testing, adjustment and repair of the irrigation system; aerating and de-thatching turf areas; replenishing mulch; fertilizing; pruning; replanting of failed plants; weeding; pest control; and removing obstructions to emission devices.
c. Failed plants shall be replaced with the same or functionally equivalent plants that may be size-adjusted as appropriate for the stage of growth of the overall installation. Failing plants shall either be replaced or be revived through appropriate adjustments in water, nutrients, pest control or other factors as recommended by a landscaping professional.

29. LANDSCAPE PROJECT SUBMITTAL
Prior to issuance of building permits, the applicant shall submit a full Landscape Documentation Package, per sections 14.15.050 A, B, C, and D of the Landscape Ordinance, for projects with landscape area 500 square feet or more or elect to submit a Prescriptive Compliance Application per sections

14.15.040 A, B, and C for projects with landscape area between 500 square feet and 2,500 square feet. The Landscape Documentation Package or Prescriptive Compliance Application shall be reviewed and approved to the satisfaction of the Director of Community Development prior to issuance of building permits, and additional requirements per sections 14.15.040 D, E, F, and G or 14.15.050 E, F, G, H, and I will be required to be reviewed and approved prior to final inspections.

30. LANDSCAPE AND IRRIGATION PLANS
The applicant shall submit detailed landscape and irrigation plans to be reviewed and approved by Community Development prior to issuance of building permits. The landscape plan shall include water conservation and pesticide reduction measures in conformance with Chapter 14.15, Landscape Ordinance, and the pesticide control measures referenced in Chapter 9.18, Stormwater Pollution Prevention and Watershed Protection, of the Cupertino Municipal Code.
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31. SITE IMPROVEMENTS
All proposed site improvements shall be completed prior to final occupancy of any structures approved in conjunction with the project.

32. DARK SKY COMPLIANCE AND/OR BIRD SAFE COMPLIANCE
Prior to issuance of Building Permits, the applicant/property owner shall submit final plans in compliance with the approved lighting plans to comply with development standards of Cupertino Municipal Code Section 19.102.030 Bird-Safe Development Requirements and Section 19.102.040 Outdoor Lighting Requirements. In the event changes are proposed from the approved plans, said changes must be reviewed and approved by the Director of Community Development or their designee. The applicant shall provide all documentation required to determine compliance with the Municipal Code.

The final lighting plan (including a detailed photometric plan) shall be reviewed and approved by the Director of Community Development prior to building permit issuance. A report from a licensed lighting engineer may be required to confirm all exterior lighting throughout the site complies with the City’s Ordinance.

33. TRANSFORMERS ON PRIVATE PROPERTY
Electrical transformers, telephone cabinets and similar equipment shall be placed in underground vaults, inside buildings, or as required by PG&E. The developer must receive written approval from both the Public Works Department and the Community Development Department prior to installation of any above ground equipment. Should above ground equipment be permitted by the City, equipment and enclosures shall be screened with fencing and landscaping such that said equipment shall not encroach into the public right of way and is not visible from public street areas, as determined by the Community Development Department Transformers shall not be located in the front or side building setback area, unless it is the only acceptable location allowed by PG&E.

34. UTILITY STRUCTURE PLAN
Prior to issuance of building permits, the applicant shall work with staff to provide a detailed utility plan to demonstrate screening or undergrounding of all new utility structures [including, but not limited to backflow preventers (BFP), fire department connections (FDC), post-indicator valves (PIV), and gas meters] to the satisfaction of the Director of Community Development, Public Works, Fire Department, and applicable utility agencies. 157
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35. EQUIPMENT SCREENING
All mechanical and other equipment on the building or on the site shall be screened so they are not visible from public street areas or adjoining developments. The height of the screening shall be taller than the height of the mechanical equipment that it is designed to screen but may not exceed the overall height approved of that structure. A line-of-sight plan may be required to demonstrate that the equipment will not be visible from any public right-ofway. The location of the equipment and necessary screening shall be reviewed and approved by the Director of Community Development prior to issuance of building permits.

36. VOLATILE ORGANIC COMPOUND EMISSIONS FROM PAINT
Prior to issuance of the first building permit, the Applicant shall include a note on all plans where paint specifications or other design specifications are listed, that the project design will incorporate only low-VOC paint (i.e., 50 grams per liter [g/L] or less) for interior and exterior wall architectural coatings.

37. AVOID NESTING BIRDS DURING CONSTRUCTION
Prior to issuance of any demolition, grading and building permit, indicate the following on all construction plans:
a. Demolition, construction, ground-disturbing, and tree removal/pruning activities shall be scheduled to be completed prior to nesting season (February 1 through August 31), if feasible.
b. If demolition, construction, ground-disturbing, or tree removal/pruning activities occur during the nesting season (February 1 and August 31), preconstruction surveys shall be conducted as follows:
i. No more than 7 days prior to the start of demolition, construction, ground-disturbing, or tree removal/pruning activities, in order to identify any active nests with eggs or young birds on the site and surrounding area within 100 feet of construction or tree removal activities.
ii. Preconstruction surveys shall be repeated at 14-day intervals until demolition, construction, ground-disturbing, or tree removal/pruning activities have been initiated in the area, after which surveys can be stopped. As part of the preconstruction survey(s), the surveyor shall inspect all trees and other possible nesting habitats in, and immediately adjacent to, the construction areas for active nests, while ensuring that they do not disturb the nests as follows:
1) For projects that require the demolition or construction one singlefamily residence, ground disturbing activities affecting areas of up to 158
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500 square feet, or the removal of up to three trees, the property owner or a tree removal contractor, if necessary, is permitted to conduct the preconstruction surveys to identify if there are any active nests. If any active nests with eggs or young birds are identified, the project applicant shall retain a qualified ornithologist or biologist to identify protective measures.
2) For any other demolition, construction and ground disturbing activity or the removal of four or more trees, a qualified ornithologist or biologist shall be retained by the project applicant to conduct the preconstruction surveys.
iii. If the preconstruction survey does not identify any active nests with eggs or young birds that would be affected by demolition, construction, ground-disturbing or tree removal/pruning activities, no further mitigating action is required. If an active nest containing eggs or young birds is found sufficiently close to work areas to be disturbed by these activities, their locations shall be documented, and the qualified ornithologist or biologist shall identify protective measures to be implemented under their direction until the nests no longer contain eggs or young birds.
iv. Protective measures may include, but are not limited to, establishment of clearly delineated exclusion zones (i.e., demarcated by identifiable fencing, such as orange construction fencing or equivalent) around each nest location as determined by the qualified ornithologist or biologist, taking into account the species of birds nesting, their tolerance for disturbance and proximity to existing development. In general, exclusion zones shall be a minimum of 300 feet for raptors and 75 feet for passerines and other birds. The active nest within an exclusion zone shall be monitored on a weekly basis throughout the nesting season to identify signs of disturbance and confirm nesting status. The radius of an exclusion zone may be increased by the qualified ornithologist or biologist, if project activities are determined to be adversely affecting the nesting birds. Exclusion zones may be reduced by the qualified ornithologist or biologist only in consultation with California Department of Fish and Wildlife. The protection measures and buffers shall remain in effect until the young have left the nest and are foraging independently or the nest is no longer active.
v. A final report on nesting birds and raptors, including survey methodology, survey date(s), map of identified active nests (if any), and protection measures (if required), shall be prepared by the qualified ornithologist or biologist and submitted to the Director of Community 159
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Development or his or her designee, through the appropriate permit review process (e.g., demolition, construction, tree removal, etc.), and be completed to the satisfaction of the Community Development Director prior to the start of demolition, construction, ground-disturbing, or tree removal/pruning activities.

38. INTERIOR NOISE STANDARDS
For multi-family residential development, interior noise levels attributable to exterior sources shall not exceed applicable Building Code standards. Each residential unit shall be designed in accordance with the recommendations of a certified acoustical engineer, and building permit plans shall include those recommendations for review and verification by the Building Official. Units shall be constructed using good-quality construction practices and properly installed equipment to ensure that the interior average day-night noise level does not exceed 45 dBA.

For non-residential development, interior noise levels shall be evaluated and designed by a certified acoustical engineer to meet CalGreen Acoustical Control requirements. The certified acoustical engineer’s recommendations shall be included in the building permit plans for review and verification by the Building Official.

Mixed use development shall apply the applicable interior noise level standard to residential and non-residential portions of the project Prior to issuance of a certificate of occupancy, the applicant shall submit post-construction monitoring or reporting, prepared by a certified acoustical engineer, documenting compliance with the applicable interior noise level standards.

39. NOISE LEVELS AND ABATEMENT
Project uses and all equipment installed on the site shall comply with the City’s Community Noise Control Ordinance at all times. Installation of any mechanical or other equipment shall be evaluated to determine that the installation meets the City’s Community Noise Control Ordinance. Any documentation or studies required to determine this shall be provided by the applicant as his/her sole expense. Should the project exceed any of the stipulated maximum noise levels outlined in the City’s Community Noise Control Ordinance, an acoustical engineer may be required to submit noise attenuation measures to the satisfaction of the Director of Community Development at the applicant’s expense.
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40. NOISE AND VIBRATION NOTICE
At least 10 days prior to the start of any demolition, ground disturbing, or construction activities, the project applicant/contractor shall send notices of the planned activity by first class mail as follows:
a. For projects on sites that are more than 0.5 acres or four or more residential units the notices shall be sent to off-site businesses and residents within 500 feet of the project site;
b. For projects on sites between 0.25 to 0.5 acres, or two or three residential units (not including Accessory Dwelling Units) notices shall be sent to offsite businesses and residents within 250 feet of the project site; or c. For projects on sites less than 0.25 acres or one residential unit, the notices shall be sent to off-site businesses and residents within 100 feet of the project site.

The notification shall include a brief description of the project, the activities that would occur, the hours when activity would occur, and the construction period’s overall duration. The notification should include the telephone numbers of the contractor’s authorized representatives that are assigned to respond in the event of a noise or vibration complaint. The City will provide mailing addresses for the Applicant’s use. The project applicant shall provide the City with evidence of mailing of the notice, upon request. If pile driving, see additional noticing requirements below.

41. NOISE AND VIBRATION SIGNAGE
At least 10 days prior to the start of any demolition, ground disturbing, or construction activities, the project applicant/contractor shall ensure that a sign measuring at least four feet by six feet shall be posted on construction fencing at the entrance(s) to the job site, clearly visible to the public, and include the following:
a. Permitted construction days and hours;
b. A description of proposed construction activities;
c. Telephone numbers of the City’s and contractor’s authorized representatives that are assigned to respond in the event of a noise or vibration complaint; and
d. Contact information for City’s and contractor’s authorized representatives that are assigned to respond in the event of a complaint related to fugitive dust, pursuant to the requirements for compliance with BAAQMD’s CEQA Air Quality Guidelines.

If the authorized contractor’s representative receives a complaint, they shall investigate, take appropriate corrective action, and report the complaint and 161
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the action taken to the City within three business days of receiving the complaint.

42. NOISE DURING CONSTRUCTION
Prior to issuance of any demolition, grading or building permit, the applicant must include on plans a note that, during project construction, the project applicant shall incorporate the following measures to reduce noise during construction and demolition activity:
a. The project applicant and contractors shall prepare and submit a Construction Noise Control Plan to the City’s Planning Department for review and approval prior to issuance of the first permit. The Construction Noise Plan shall demonstrate compliance with daytime and nighttime decibel limits pursuant to Chapter 10.48 (Community Noise Control) of Cupertino Municipal Code. The details of the Construction Noise Control Plan shall be included in the applicable construction documents and implemented by the on-site Construction Manager. Noise reduction measures selected and implemented shall be based on the type of construction equipment used on the site, distance of construction activities from sensitive receptor(s), site terrain, and other features on and surrounding the site (e.g., trees, built environment) and may include, but not be limited to, temporary construction noise attenuation walls, highquality mufflers. During the entire active construction period, the Construction Noise Control Plan shall demonstrate that compliance with the specified noise control requirements for construction equipment and tools will reduce construction noise in compliance with the City’s daytime and nighttime decibel limits.
b. Select haul routes that avoid the greatest amount of sensitive use areas and submit to the City of Cupertino Public Works Department for approval prior to the start of the construction phase.
c. Signs will be posted at the job site entrance(s), within the on-site construction zones, and along queueing lanes (if any) to reinforce the prohibition of unnecessary engine idling. All other equipment will be turned off if not in use for more than 5 minutes.
d. During the entire active construction period and to the extent feasible, the use of noise producing signals, including horns, whistles, alarms, and bells will be for safety warning purposes only. The construction manager will use smart back-up alarms, which automatically adjust the alarm level based on the background noise level or switch off back-up alarms and replace with human spotters in compliance with all safety requirements and law. 162
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43. EXCESSIVE NOISE AND VIBRATIONS
The project does not intend to conduct the following activities within the screening distance to buildings or structures: pile driving within 100 feet, vibratory roller within 25 feet, or other heavy equipment (e.g., bulldozer) within 15 feet; and for historical structures: pile driving within 135 feet, vibratory roller within 40 feet, or other heavy equipment within 20 feet as indicated with project materials. Should such equipment be used within the screening distances outlined in Chapter 17.04, additional studies and review are required by the City prior to such equipment use.

Per General Plan Policy HS-8.3, construction contractors shall use the best available technology to minimize excessive noise and vibration from construction equipment such as pile drivers, jack hammers, and vibratory rollers during construction. Per General Plan Policy HS-8.3, construction contractors shall use the best available technology to minimize excessive noise and vibration from construction equipment such as pile drivers, jack hammers, and vibratory rollers during construction.

44. FUGITIVE DUST CONTROL
Prior to issuance of the any demolition, grading, or building permit, include on all permit plans, the full text of each of the Bay Area Air Quality Management District’s Basic Control Measures from the latest version of BAAQMD’s CEQA Air Quality Guidelines, as subsequently revised, supplemented, or replaced, to control fugitive dust (i.e., particulate matter PM2.5 and PM10) during demolition, ground disturbing activities and/or construction.

45. CALIFORNIA NATIVE AMERICAN TRIBAL PROTECTIONS
Prior to issuance of any demolition, grading, or building permit, the applicant shall demonstrate to the satisfaction of the Director of Community Development that the project complies with the requirements of Public Resources Code Section 21080.66. Compliance with this condition shall be ongoing throughout all ground-disturbing and restoration activities.

Requested by California Native American tribes Tamien Nation and Muwekma Ohlone Tribe of the SF Bay Area, the Applicant shall retain and fund tribal monitoring during all ground-disturbing activities. The designated tribal monitor shall be selected by the tribe(s) and shall comply with the applicant’s site access and workplace safety requirements. The applicant shall compensate the tribal monitor at a reasonable rate, determined in good faith, that aligns with customary compensation for cultural resource monitoring, taking into account factors such as the scope and duration of the project. 163
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Tribal cultural resources shall be avoided where feasible, in accordance with subdivision (a) of Section 21084.3. In furtherance of this requirement, where feasible, the project applicant shall provide deference to tribal preferences regarding access to spiritual, ceremonial, and burial sites, and incorporate tribal traditional knowledge in the protection and sustainable use of tribal cultural resources and landscapes.

All identification, treatment, and documentation of tribal cultural resources shall be conducted in a culturally appropriate manner consistent with Public Resources Code Section 21083.9.

Prior to permit issuance, the Applicant shall complete a California Historical Resources Information System (CHRIS) archaeological records search and a tribal cultural records search for the project site and shall submit a Sacred Lands Inventory Request to the Native American Heritage Commission.

The project shall comply with California Health and Safety Code Section 7050.5 and Public Resources Code Section 5097.98, including immediate cessation of work in the event of the discovery of human remains or burial resources and treatment in accordance with applicable law and consultation with the appropriate California Native American tribe.

Where applicable to the environmental context of the site, the applicant shall incorporate tribal ecological knowledge into any habitat restoration or landscape management measures associated with the project.

46. ARCHAEOLOGICAL RESOURCES AND TRIBAL CULTURAL RESOURCES Prior to the issuance of any demolition, grading or building permit involving soil disturbance, the project applicant shall provide written verification, including the materials provided to contractors and construction crews, to the City confirming that contractors and construction crews have been notified of basic archaeological site indicators, the potential for discovery of archaeological resources, laws pertaining to these resources, and procedures for protecting these resources as follows:
a. Basic archaeological site indicators that may include, but are not limited to, darker than surrounding soils of a friable nature; evidence of fires (ash, charcoal, fire affected rock or earth); concentrations of stone, bone, or shellfish; artifacts of stone, bone, or shellfish; evidence of living surfaces (e.g., floors); and burials, either human or animal.
b. The potential for undiscovered archaeological resources or tribal cultural resources on site.
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c. The laws protecting these resources and associated penalties, including, but not limited to, the Native American Graves Protection and Repatriation Act of 1990, Public Resources Code Section 5097, and California Health and Safety Code Section 7050 and Section 7052.
d. The protection procedures to follow should construction crews discover cultural resources during project-related earthwork, include the following:
i. All soil disturbing work within 25 feet of the find shall cease. ii. The project applicant shall retain a qualified archaeologist to provide and implement a plan for survey, subsurface investigation, as needed, to define the deposit, and assessment of the remainder of the site within the project area to determine whether the resource is significant and would be affected by the project.
iii. Any potential archaeological or tribal cultural resources found during construction activities shall be recorded on appropriate California Department of Parks and Recreation forms by a qualified archaeologist.

If the resource is a tribal cultural resource, the consulting archaeologist shall consult with the appropriate tribe, as determined by the Native American Heritage Commission, to evaluate the significance of the resource and to recommend appropriate and feasible avoidance, testing, preservation or mitigation measures, in light of factors such as the significance of the find, proposed project design, costs, and other considerations. The archeologist shall perform this evaluation in consultation with the tribe.

47. HUMAN REMAINS AND NATIVE AMERICAN BURIALS
Prior to issuance of any demolition, grading and building permits that involve soil disturbance, include on plans a note that, during project construction, the project applicant shall comply with California Health and Safety Code Section 7050.5 and California Public Resources Code Section 5097.98. a. In the event of discovering human remains during construction activities, there shall be no further excavation or disturbance of the site within a 100- foot radius of the remains, or any nearby area reasonably suspected to overlie adjacent remains.
b. The Santa Clara County Coroner shall be notified immediately and shall make a determination as to whether the remains are Native American. c. If the Santa Clara County Coroner determines that the remains are not subject to his authority, he shall notify the Native American Heritage Commission (NAHC) within 24 hours.
d. The NAHC shall attempt to identify descendants (Most Likely Descendant) of the deceased Native American.
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e. The Most Likely Descendant has 48 hours following access to the project site to make recommendations or preferences regarding the disposition of the remains. If the Most Likely Descendant does not make recommendations within 48 hours after being allowed access to the project site, the owner shall, with appropriate dignity, reinter the remains in an area of the property secure from further disturbance and provide documentation about this determination and the location of the remains to the NAHC and the City of Cupertino. Alternatively, if the owner does not accept the Most Likely Descendant’s recommendations, the owner or the descendant may request mediation by the NAHC. Construction shall halt until the mediation has concluded.

48. GREEN BUILDING
The project shall be constructed in accordance with the City’s Green Building Ordinance (Chapter 16.58 of the Cupertino Municipal Code). The applicant shall obtain LEED Silver certification, be GPR certified at a minimum of 50 points, or an alternative reference standard in accordance with the ordinance since the building size is over 50,000 square feet. Third party LEED or GPR certification or alternative reference standard is required per the ordinance criteria and costs associated with third-party review shall be paid by the applicant.

49. CONSULTATION WITH OTHER DEPARTMENTS
The applicant is responsible for consulting with other departments and/or agencies with regard to the proposed project for additional conditions and requirements. Any misrepresentation of any submitted data may invalidate an approval by the Community Development Department.

50. INDEMNIFICATION
As part of the application, to the fullest extent permitted by law, the applicant shall agree to indemnify, defend with the attorneys of the City’s choice, and hold harmless the City, its City Council, and its officers, employees, and agents (collectively, the “indemnified parties”) from and against any liability, claim, action, cause of action, suit, damages, judgment, lien, levy, or proceeding (collectively referred to as “proceeding”) brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant related to any Ordinance, Resolution, or action approving the project, the related entitlements, environmental review documents, finding or determinations, or any other permit or approval authorized for the project.

The indemnification shall include but not be limited to damages, fees, and costs 166
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awarded against the City, if any, and cost of suit, attorneys’ fees, and other costs, liabilities, and expenses incurred in connection with such proceeding whether incurred by the Applicant, the City, or the parties initiating or bringing such proceeding.

The applicant shall agree to (without limitation) reimburse the City its actual attorneys’ fees and costs incurred in defense of the litigation. Such attorneys’ fees and costs shall include amounts paid to the City’s outside counsel and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the litigation reasonably incurred by City. The applicant shall likewise agree to indemnify, defend, and hold harmless the indemnified parties from and against any damages, attorneys’ fees, or costs awards, including attorneys’ fees awarded under Code of Civil Procedure section 1021.5, assessed or awarded against the indemnified parties. The Applicant shall cooperate with the City to enter a Reimbursement Agreement to govern any such reimbursement.

The Applicant shall agree that the City shall have no liability to the Applicant for business interruption, punitive, speculative, or consequential damages.

51. NOTICE OF FEES, DEDICATIONS, RESERVATIONS, OR OTHER

EXACTIONS
The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions.

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Except for otherwise noted, the following conditions must be completed and/or submitted prior to Final Map recordation.

52. TREET IMPROVEMENTS & DEDICATION
Roadway dedication in fee title and street improvements along the project frontage will be required to the satisfaction of the Director of Public Works.

Street improvements, grading and drainage plans must be completed and approved prior to Final map approval.

Street improvements may include, but not be limited to, new detached sidewalks, new ADA ramps, driveways, storm drain lateral, street tree installations, and streetlight and/or pedestrian push button relocation. All improvements must be completed and accepted by the City prior to Building Final Occupancy or Street Improvement Encroachment Permit acceptance whichever comes first.

Additional comments will be provided and shall be incorporated prior to Final Map approval.

53. ACCEPTANCE OF PROPERTY RIGHTS
The Public Works Director, or his/her designee, shall have the authority to accept all offers of dedications, easements, quitclaims and other property rights and interests on behalf of the City.

54. PEDESTRIAN AND BICYCLE IMPROVEMENTS
The developer shall provide pedestrian and bicycle related improvements (e.g. walkway and bicycle racks, etc.) consistent with the Cupertino Bicycle Transportation Plan and the Pedestrian Transportation Plan, and as approved by the Director of Public Works. All improvements must be completed and accepted by the City prior to Building Final Occupancy or Street Improvement Encroachment Permit acceptance whichever comes first.

55. STREET LIGHTING INSTALLATION
Street lighting shall be installed and shall be as approved by the Director of Public Works. Lighting fixtures shall be positioned so as to preclude glare and other forms of visual interference to adjoining properties, and shall be no higher than the maximum height permitted by the zone in which the site is located.

56. GRADING
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Grading shall be as approved and required by the Director of Public Works in accordance with Chapter 16.08 of the Cupertino Municipal Code. 401 Certifications and 404 permits maybe required. Please contact Army Corp of Engineers and/or Regional Water Quality Control Board as appropriate.

57. DRAINAGE
Drainage shall be provided to the satisfaction of the Director of Public Works and satisfy any requirements from the environmental analysis. Hydrology and pre- and post-development hydraulic calculations must be provided to indicate whether additional storm water control measures are to be constructed or renovated. The storm drain system may include, but is not limited to, subsurface storage of peak stormwater flows (as needed), bioretention basins, vegetated swales, and hydrodynamic separators to reduce the amount of runoff from the site and improve water quality. The storm drain system shall be designed to detain water on-site (e.g., via buried pipes, retention systems or other approved systems and improvements) as necessary to avoid an increase of the ten percent flood water surface elevation to the satisfaction of the Director of Public Works. Any storm water overflows or surface sheeting should be directed away from neighboring private properties and to the public right of way as much as reasonably possible.

All storm drain inlets shall be clearly marked with the words “No Dumping – Flows to Creek” using permanently affixed metal medallions or equivalent, as approved by the Environmental Programs Division.

Additional comments will be provided and shall be incorporated prior to Final Map approval.

58. C.3 REQUIREMENTS
C.3 regulated improvements are required for all projects creating and/or replacing 5,000 S.F. or more of impervious surface, collectively over the entire project site. The developer shall reserve a minimum of 4% of developable surface area for the placement of low impact development measures, for storm water treatment, unless an alternative storm water treatment plan, that satisfies C.3 requirements, is approved by the Director of Public Works.

The developer must include the use and maintenance of site design, source control and storm water treatment Best Management Practices (BMPs), which must be designed per approved numeric sizing criteria. A Storm Water Management Plan and a Storm Water Facilities Operation, Maintenance and 169
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Easement Agreement, and certification of ongoing operation and maintenance of treatment BMPs are each required.

All storm water management plans are required to obtain certification from a City approved third party reviewer.

59. SUBDIVISION AGREEMENT
The project developer shall enter into an Subdivision agreement with the City of Cupertino providing for payment of fees, including but not limited to checking and inspection fees, storm drain fees, transportation impact fees, park dedication fees and fees for under grounding of utilities. Said agreement and fees shall be executed and paid prior to issuance of Final Map approval.

Fees:
a. Checking & Inspection Fees: Per current fee schedule ($6,203 or 5% of ___________________________improvement costs)
b. Grading Permit: Per current fee schedule ($5,365 or 6% of improvement costs)
c. Tract Map Fee: Per current fee schedule ($15,013)
d. Storm Drainage Fee: Per current fee schedule (residential: $4,548 per AC + $345 per unit)
e. Transportation Impact Fee: Per current fee schedule: (residential: $4,215 per unit)
f. Park Fees: Per current fee schedule: $54,000 per unit ($1,620,000 based on 30 new units, 5 BMR
are waived.
g. Storm Management Plan Fee Per current fee schedule ($2,432) h. Street Tree Fee: By Developer or Per current fee schedule:
$562 per tree
i. Developer contribution: $12,500 fee for the future development of a _______________________ Gateway monument sign at the median ___________________________of De Anza Blvd.

Bonds:
a. Faithful Performance Bond: 100% of Off-site and On-site Improvements b. Labor & Material Bond: 100% of Off-site and On-site Improvement c. On-site Grading Bond: 100% of site improvements.

The fees described above are imposed based upon the current fee schedule adopted by the City Council. However, the fees imposed herein may be modified at the time of recordation of a final map or issuance of a building permit in the 170
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event of said change or changes, the fees changed at that time will reflect the then current fee schedule.

60. FINAL MAP
A final map will be subject to City Council approval and shall be recorded prior to issuance of building permits. Existing buildings must be demolished prior to recordation of the final map as building(s) cannot straddle between lot lines.

61. TRANSPORTATION
The Project is subject to the payment of Transportation Impact Fees under City’s Transportation Impact Fee Program (CMC Chapter 14.02).

62. PARKS
The residential project is subject to the payment of park fees in-lieu of park land dedication under City’s Park Land Dedication Fee (CMC Chapter 13.08).

63. SURVEYS
A Boundary Survey and a horizontal control plan will be required for all new construction to ensure the proposed building will be set based on the boundary survey and setback requirements.

64. TRASH, RECYCLING AND COMPOST ENCLOSURES
Trash enclosure plans must be designed in accordance with the City’s “Public Works Guidelines posted at www.cupertino.org/nowaste, and to the satisfaction of the Environmental Programs Manager. Clearance by the Public Works Department is required prior to obtaining a building permit (CMC

9.18.210 H & K).

Applicant shall enter into an agreement with the City that indemnifies and holds harmless both the City and the refuse and recycling collection company (Recology) from and against any harm, damage or maintenance that may occur or become necessary to onsite paving stone driveway surfaces.

65. OPERATIONS & MAINTENANCE AGREEMENT
Developer shall enter into an Operations & Maintenance Agreement with the City before Final Map approval. The Agreement shall include the operation and maintenance for non-standard appurtenances in the public road right-ofway that may include, but is not limited to, sidewalk, pavers, and street lights.

66. UNDERGROUND UTILITIES
Developer shall comply with the requirements of the Underground Utilities Ordinance No. 331 and other related Ordinances and regulations of the City of 171
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Cupertino, and shall coordinate with affected utility providers for installation of underground utility devices. Developer shall submit detailed plans showing utility underground provisions. Said plans shall be subject to prior approval of the affected Utility provider and the Director of Public Works.

67. TRANSFORMERS & CABINETS
Electrical transformers, telephone cabinets and similar equipment shall be placed in underground vaults. The developer must receive written approval from both the Public Works Department and the Community Development Department prior to installation of any above ground equipment. Should above ground equipment be permitted by the City, equipment and enclosures shall be screened with fencing and landscaping such that said equipment is not visible from public street areas, as determined by the Community Development Department. Transformers shall not be located in the front or side building setback area.

68. WATER BACKFLOW PREVENTERS
Domestic and Fire Water Backflow preventers and similar above ground equipment shall be placed away from the public right of way and site driveways to a location approved by the Cupertino Planning Department, Santa Clara County Fire Department and the water company.

69. BEST MANAGEMENT PRACTICES
Utilize Best Management Practices (BMPs), as required by the State Water Resources Control Board, for construction activity, which disturbs soil. BMP plans shall be included in grading and street improvement plans.

70. NPDES CONSTRUCTION GENERAL PERMIT
When and where it is required by the State Water Resources Control Board (SWRCB), the developer must obtain a Notice of Intent (NOI) from the SWRCB, which encompasses preparation of a Storm Water Pollution Prevention Plan (SWPPP), use of construction Best Management Practices (BMPs) to control storm water runoff quality, and BMP inspection and maintenance.

71. EROSION CONTROL PLAN
Developer must provide an approved erosion control plan by a Registered Civil Engineer. This plan should include all erosion control measures used to retain materials on site. Erosion control notes shall be stated on the plans.

72. WORK SCHEDULE
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Every 6 months, the developer shall submit a work schedule to the City to show the timetable for all grading/erosion control work in conjunction with this project.

73. TRAFFIC CONTROL PLAN
The developer must submit a traffic control plan by a Registered Traffic Engineer to be approved by the City. The plan shall include a temporary traffic control plan for work in the right of way as well as a routing plan for all vehicles used during construction. All traffic control signs must be reviewed and approved by the City prior to commencement of work. The City has adopted Manual on Uniform Traffic Control Devices (MUTCD) standards for all signage and striping work throughout the City.

74. STREET TREES
Street trees shall be planted within the Public Right of Way to the satisfaction of the Director of Public Works and shall be of a type approved by the City in accordance with Ordinance No. 125.

75. FIRE PROTECTION
Fire sprinklers shall be installed in any new construction.

76. SANTA CLARA COUNTY FIRE DEPARTMENT
A letter of clearance for the project shall be obtained from the Santa Clara County Fire Department prior to issuance of building permits. Clearance should include written approval of the location of any proposed Fire Backflow Preventers, Fire Department Connections and Fire Hydrants (typically Backflow Preventers should be located on private property adjacent to the public right of way, and fire department connections must be located within 100’ of a Fire Hydrant).

77. FIRE HYDRANT
Fire hydrants shall be located as required by the City and Santa Clara County Fire Department as needed.

78. SAN JOSE WATER SERVICE COMPANY CLEARANCE
Provide San Jose Water Service Company approval for water connection, service capability and location and layout of water lines and backflow preventers before Final Map approval.

79. DEDICATION OF UNDERGROUND WATER RIGHTS
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Developer shall “quit claim” to the City all rights to pump, take or otherwise extract water from the underground basin or any underground strata in the Santa Clara Valley.

80. SANITARY DISTRICT
A letter of clearance or sign off of street improvement plans for the project shall be obtained from the Cupertino Sanitary District prior to Final Map approval.

81. UTILITY EASEMENTS
Clearance approvals from the agencies with easements on the property (including PG&E, AT&T, and San Jose Water Company, and/or equivalent agencies) will be required prior to Final Map approval.

82. RECIPROCAL EASEMENT AMENDMENT
Developer shall provide the recorded amended reciprocal easement document prior to Final Map recordation.

83. LANDSCAPE MAINTENANCE DISTRICT
In the event that a Landscape Maintenance District is established for the medians along South De Anza Boulevard, the property owner shall agree to join and participate in the district, including payment of the corresponding fees.

SECTION V: CONDITIONS ADMINISTERED BY THE CUPERTINO SANITARY

DISTRICT

84. INSTALLERS AGREEMENT
The property owner shall enter into an Installer’s Agreement with the District for the construction of the proposed sewer infrastructure and associated fees prior to issuance of Building Permits.

The following fees will be required during the Building Permit phase as part of the Installer’s Agreement:
a. Sewer Connection Fee: The property owner shall pay all required Cupertino Sanitary District Sewer Connection Fees – New Townhome/Condominium ($9,859.00/per unit) (O.C.7201).
b. Treatment Plant Capacity Fee: Cupertino Sanitary District Treatment Plant Capacity Fee – Townhouse/Condominium ($3,495) is required for the subject improvements. (O.C. 7202).
c. Peak Wastewater Flow Mitigation Fee
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d. District Administration, Engineering, and Inspection Fees (including permit processing, plan check, and permanent disconnecting and capping fees for existing lateral O.C. 7101)

85. DESIGN REQUIREMENTS
a. Parcels 366-10-061 and 366-10-126 will be joined into one large parcel for the commercial and garage buildings. Each townhome will have their own parcel number.
b. Each unit must have a separate Property Line Cleanout on its lateral.

Maintain a minimum horizontal separation of 10 feet between sewer and water service lines.
c. All off-site and on-site sewer manholes must be constructed in accordance with District standards.
d. Sewer line gradients must be clearly shown and maintain a minimum slope of 2%.
e. An approved backflow device (IAPMO or UPC approved) is required IF the lowest finished floor with plumbing is less than (1’) foot above the rim of the nearest upstream manhole (O.C. 4105).
f. Trees should be planted 10' from the sanitary sewer line to prevent root intrusion. Alternatively, the sewer line should be sleeved to protect the pipe from root intrusion.
g. Building Permit Phase – Sewer Plan and profile views of all on-site sanitary sewer manholes, sewer mains, and laterals are required.

1. Please refer to District Standard Details for the proposed sanitary sewer works and connections.

86. THE FOLLOWING CORRECTIONS/CLARIFICATIONS SHALL BE MADE IN THE BUILDING PERMIT PLANS.
a. Sheet C5.0: Please show the existing sanitary sewer lateral on the plans and indicate that it will be abandoned and permanently capped at its connection to the existing sanitary sewer mainline/manholes. (The proposed development is shown to have an entirely new sanitary sewer system.) For reference, the existing lateral is 4-inch diameter VCP, 31 feet long, and located approximately 6 feet from the right property line. b. Sheet C5.0: Please show the following existing sanitary sewer facilities, see details below for reference:
i. Upstream MH T-560: Rim Elev. 301.00; Invert/Outlet Elev. =291.35; Depth 9.65 ft.
ii. Downstream MH PROS-01 (replaced FI-T-55F): Rim Elev. 303.75; Depth = 9.24 ft.
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iii. Existing sanitary sewer mainline along S. De Anza Blvd.: approximately 156 feet of 10-inch-diameter VCP.
c. Sheet C5.0, C5.1 & C5.2: Sanitary Sewer Laterals. Laterals shown in the plan views are connected to both sides of the sanitary sewer mainline at the same station. The District does not allow this configuration. Please stagger or offset the lateral connections along the mainline and maintain a minimum 2-foot clear separation between lateral connections. Please provide the lateral locations and elevations accordingly.
d. Sheet C5.0, C5.1 & C5.2: Sanitary Sewer Laterals. Provide the sanitary sewer lateral depth (from the PLCO to the sanitary sewer main) , diameter and elevations for all proposed laterals.
e. Sheet C5.0, C5.1 & C5.2: Manhole Details. Provide a sanitary sewer manhole (SSMH) channel detail for all proposed new manholes.
f. Sheet C5.0, C5.1 & C5.2: Manhole Details. Clearly label the proposed new manholes as SSMH #1, SSMH #2, and SSMH #3. Please provide the pipe invert/flowline elevations at the manholes. Clearly identify the invert elevations as “INV” on the plans. The indicated INV elevation shall represent the pipe invert/flowline elevation at the manhole. g. Sheet C5.0, C5.1 & C5.2: Manhole Details. Provide the location of each proposed SSMH, including the distance to the nearest upstream or downstream manhole.
h. Sheet C5.0, C5.1 & C5.2: Vertical Clearance. Show the vertical clearance between the bottom of the storm drain, including other utilities, and the top of the proposed sanitary sewer (SS). Provide sufficient dimensions/elevations on the profile to demonstrate the available clearance.

87. EASEMENTS
a. As the proposed sewer lines will be located on private property, the District will require an easement on these parcels for the installation of the sanitary sewer mainlines and laterals.
b. Sanitary Sewer Easements must be granted to CuSD for all mainlines located within the property.
c. The applicant must provide a Plat and Legal Description of the Public Sanitary Sewer Easement for District review.
d. The District will allow removal of sanitary sewer easement (SSE) if the sewer improvements are located within a proposed Public Utility Easement (PUE) shown and recorded on the Final Map.
e. The easement deed must be prepared, executed, and recorded with the County Recorder’s Office prior to project acceptance.
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88. ADDITIONAL REQUIREMENTS
a. Approval of the Building Permit is subject to available system capacity at the time of review.
b. A sand/oil separator is required if a trash enclosure is being installed. c. The installation of interior grease traps or exterior grease interceptors may be required for commercial buildings, contingent upon their intended use. d. Storm water surface or roof drains and other general surface water runoff shall not be discharged to the sanitary sewer.
e. The cleanout is required to be protected with a (G-5) Christy Box. If the cleanout is installed in the driveway or may be subject to traffic, the District strongly recommends the lid to have a traffic rated bolt-down grate. The box must be set and conform to the pavement finished grade. The cleanout must not be covered up by pavers or any other materials that will make the cleanout inaccessible. (O.C. 4101).

SECTION VI: CONDITIONS ADMINISTERED BY THE SANTA CLARA

COUNTY FIRE DEPARTMENT

89. FIRE SPRINKLERS REQUIRED
(As noted on sheet P.1) Approved automatic sprinkler systems in new and existing buildings and structures shall be provided in the locations described in this Section or in Sections 903.2.1 through 903.2.18 whichever is the more restrictive. For the purposes of this section, firewalls used to separate building areas shall be constructed in accordance with the California Building Code and shall be without openings or penetrations. NOTE: The owner(s), occupant(s) and any contractor(s) or subcontractor(s) are responsible for consulting with the water purveyor of record in order to determine if any modification or upgrade of the existing water service is required. A State of California licensed (C-16) Fire Protection Contractor shall submit plans, calculations, a completed permit application and appropriate fees to this department for review and approval prior to beginning their work. CFC Sec. 903.2. NFPA 13 sprinklers will be provided.

90. FIRE ALARM
Fire alarm requirements will be determined during building permit phase.

91. REQUIRED FIRE FLOW
The fire flow for this project is 3750 GPM at 20 psi residual pressure. If an automatic fire sprinkler system will be installed, the fire flow will be reduced by 50%, establishing a required adjusted fire flow of 1875 GPM at 20 psi residual pressure. Note: The minimum required number and spacing of the 177
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hydrants shall be in accordance with CFC Table C102.1. Hydrant spotting plan approved PC 260491, provide documentation from a local water purveyor confirming the required fire flow of 1875 GPM @ 20 psi residual from new fire hydrant located within 400’ of the farthest exterior corner of the structure during building permit.

92. PUBLIC/PRIVATE FIRE HYDRANT REQUIRED
(As note on sheet C7.0) Provide a public/private fire hydrant at a final location to be determined jointly by the Fire Department and San Jose Water Company.

Maximum distance of 250 feet from the building frontage, 500 ft between hydrants and a maximum of 100 feet from the FDC, with a minimum hydrant flow of 1875 GPM @ 20 psi residual. Fire hydrants shall be provided along required fire apparatus access roads and adjacent public streets. CFC Sec. 507, and Appendix B and associated Tables, and Appendix C.

93. FIRE HYDRANT SYSTEMS REQUIRED
(As note on sheet C7.0) Where a portion of the facility or building hereafter constructed or moved into or within the jurisdiction is more than 400 feet from a hydrant on a fire apparatus access road, as measured by an approved route around the exterior of the facility or building, onsite fire hydrants and mains shall be provided where required by the fire code official. Exception: For Group R-3 and Group U occupancies the distance requirement shall be 600 feet. For buildings equipped throughout with an approved automatic sprinkler system installed in accordance with Section 903.3.1.1, 903.3.1.2 or 903.3.1.3, the distance requirement shall be not more than 600 feet. [CFC, Section 507.5.1]. Three new public hydrants noted on sheet C7.0.

94. FIRE DEPARTMENT CONNECTION
(As noted on sheet C7.0) The fire department connection (FDC) for the structure in support of the sprinkler system shall be installed at the street on the street address side of the building. It shall be located within 100 feet of a public fire hydrant and within ten (10) feet of the main PIV (unless otherwise approved by the Chief due to practical difficulties). FDC's shall be equipped with a minimum of two (2), two-and-one-half (2- 1/2”) inch national standard threaded inlet couplings. Orientation of the FDC shall be such that hose lines may be readily and conveniently attached to the inlets without interference.

FDC's shall be painted safety yellow [SCCFD, SP-2 Standard].

95. FIRE DEPARTMENT ROADWAY TURNAROUND REQUIRED
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(As noted on sheet C7.0) Dead-end fire apparatus access roads in excess of 150 feet (45,720mm) shall be provided with width and turnaround provisions as determined by the Fire Code Official.

96. FIRE APPARATUS (ENGINE)ACCESS ROADWAY REQUIRED
(As noted on sheet C7.0) Provide an access roadway with a paved all-weather surface, a minimum unobstructed width of 20 feet, vertical clearance of 13 feet 6 inches, minimum circulating turning radius of 30 feet inside, 50 feet outside, and a maximum slope of 15%. Surface shall be capable of supporting 75K pounds. Installations shall conform to Fire Department Standard Details and Specifications sheet A-1. CFC Sec. 503.

97. BUILDINGS AND FACILITIES ACCESS
(As noted on sheet C7.0) Approved fire apparatus access roads shall be provided for every facility, building or portion of a building hereafter constructed or moved into or with the jurisdiction. The fire apparatus access road shall comply with the requirements of this section and shall extend to within 150 feet of all portions of the facility and all portions of the exterior walls of the first story of the building as measured by an approved route around the exterior of the building or facility. [CFC, Section 503.1.1].

98. REQUIRED AERIAL ACCESS
(As noted on sheet A.7.1 and sheet C7.0) Where the vertical distance between the grade plane and the highest roof surface exceeds 30 feet (9144 mm), approved aerial fire apparatus access roads shall be provided. For purposes of this section, the highest roof surface shall be determined by measurement to the eave of a pitched roof, the intersection of the roof to the exterior wall, or the top of parapet walls, whichever is greater. Exception: Where approved by the fire code official, buildings of Type IA, Type IB or Type IIA construction equipped throughout with an automatic sprinkler systemin accordance with Section 903.3.1.1 and having firefighter access through an enclosed stairway with a Class I stand pipe from the lowest level of fire department vehicle access to all roof surfaces. Overhead utility and power lines shall not be located within the aerial fire apparatus access roadway. Width: Fire apparatus access roads shall have a minimum unobstructed width of 26 feet (7925) in the immediate vicinity of any building or portion of building more than 30 feet (9144 mm) in height. Proximity to building: At least one of the required access routes meeting this condition shall be located within a minimum of 15 feet (4572) and a maximum of 30 feet (9144mm) from the building, and shall be positioned 179
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parallel to one entire side of the building, as approved by the fire code official [CFC Chp. 5 and SCCFD SD&S A-1].

99. FIRE LANES REQUIRED
(As noted on sheet C7.0) The minimum clear width of fire department access roads shall be 20 feet. Fire apparatus access roads shall be designated and marked as a fire lane as set forth in Section 22500.1 of the California Vehicle Code.
100.GROUND LADDER ACCESS
(As shown on sheet C7.0 and L.2.0) Ground-ladder rescue from second and third floor rooms with egress windows, shall be made possible for fire department operations. With the climbing angle of seventy-five degrees maintained, an approximate walkway width along either side of the building shall be no less than seven feet clear. Landscaping shall not be allowed to interfere with the required access. CFC Sec. 503 and 1031.2 NFPA 1932 Sec.

5.1.8 through 5.1.9. Ladder access (one for each emergency egress window) of an all-weather supportive surface along with an approved access walkway leading from the fire apparatus access road to them, shall be provided. 101.WATER SUPPLY REQUIREMENTS
Potable water supplies shall be protected from contamination caused by fire protection water supplies. It is the responsibility of the applicant and any contractors and subcontractors to contact the water purveyor supplying the site of such project, and to comply with the requirements of that purveyor.

Such requirements shall be incorporated into the design of any water-based fire protection systems, and/or fire suppression water supply systems or storage containers that may be physically connected in any manner to an appliance capable of causing contamination of the potable water supply of the purveyor of record. Final approval of the system(s) under consideration will not be granted by this office until compliance with the requirements of the water purveyor of record are documented by that purveyor as having been met by the applicant(s). 2025 CFC Sec. 903.3.5 and Health and Safety Code 13114.7.
102.ADDRESS IDENTIFICATION
New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible from the street or road fronting the property. These numbers shall contrast with their background. Where required by the fire code official, address numbers shall be provided in additional approved 180
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locations to facilitate emergency response. Address numbers shall be Arabic numbers or alphabetical letters. Numbers shall be a minimum of 6 inches high with a minimum stroke width of 0.5 inch (12.7 mm). Where access is by means of a private road and the building cannot be viewed from the public way, a monument, pole or other sign or means shall be used to identify the structure.

Address numbers shall be maintained. CFC Sec. 505.1.
103.CONSTRUCTION SITE FIRE SAFETY
All construction sites must comply with applicable provisions of the CFC Chapter 33 and our Standard Detail and Specification S1-7. Provide appropriate notations on subsequent plan submittals, as appropriate to the project. CFC Chp. 33.

SECTION VII: CONDITIONS ADMINISTERED BY THE ENVIRONMENTAL

PROGRAMS DIVISION
104.TRASH ENCLOSURE
All wet waste businesses, defined as a business that produces food, organic and/or liquid wastes, must include a covered trash enclosure to accommodate all waste containers including compactors (landfill, recycling, organics, and cooking oil/grease). The trash enclosure must be designed and constructed in accordance with the “Guidelines for Non-Residential Building Trash and Recycling Enclosures”. If a property does not have a trash enclosure, has one that does not have roof, or is of inadequate size for all tenant space on the property, construction of a new or modification of an existing one must be included with the plan set submitted during the review process. The trash enclosure must be designed or modified to accommodate all waste containers in use by all occupants of the property, not merely the tenant making application for the building or development permit.
105.WASTE TRIOS AND CIGARETTE URNS
One permanently installed exterior waste receptacle trio (landfill, recycle, compost) and cigarette urn, designed for public use must be installed on the property and shown on the plans submitted. One trio set and cigarette urn satisfies the requirement for up to four adjacent businesses on one property.

The receptacle openings and cigarette urn must be sufficiently covered to prevent rainwater intrusion.
106.FULL TRASH CAPTURE STORM DRAIN SYSTEMS
For projects located in moderate and high trash management areas as defined by the City of Cupertino Trash Management Area Map or are adjacent to a 181
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creek, full trash capture systems are required. Fueling stations, automotive, light industrial or other uses which may have fine particulate or liquid based pollutants (including cooking oils/grease) may require an additional media and/or hydrocarbon filter fitted to the trash capture system. Topographical flow maps of the property identifying all storm drain inlets, underground storm water flow lines, and all connections with the City’s storm drain system and any adjacent property are required to be submitted during plan review.

All full trash capture systems installed must be selected from the California State Water Resources Control Board approved list. Please refer to the Certified Trash Full Capture Systems List of Trash Treatment Control Devices to find a suitable system to treat the entire property. The design of the trash control system may be required to be reviewed and stamped by a registered Civil Engineer. Devices must be installed and maintained (cleaned) according to the manufacturer specifications and to ensure that they are operated at a level necessary to maintain their designation as a full-capture system as required by the City of Cupertino and San Francisco Bay Region Municipal Regional Stormwater Permit (NPDES No. CAS612008) Order No. R2-2015- 0049 (MRP) Provision C.10.b.i. The property owner must provide official written record of cleaning and maintenance to the City upon request during periodic City inspections.
107.STORM DRAIN INLET LABELING
All exterior storm drain inlets on the property shall be clearly marked with “No Dumping Flows to Creek” or “No Dumping Flows to Bay”. 108.DESIGNATED SMOKING AREAS
If smoking is permitted on the property, the designated smoking area(s) must be identified on the plans and an appropriate number of cigarette urns with rainwater covers are required. If smoking is not permitted on the property an appropriate number of cigarette urns with rainwater covers must be provided on private property immediately adjacent to the sidewalk to prevent discarded cigarettes from being disposed of on the sidewalk and street. 109.EXTERIOR COPPER
The exterior use of copper for roofing materials, rain gutters, downspouts, or any ornamental enhancement is prohibited. Small copper adornments such as door handles or fence post caps are exempted.
110.CONSTRUCTION AND DEMOLITION MATERIAL RECYCLING AND

RECOVERY
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All construction, demolition, and renovation projects are required to submit a completed Debris Recovery Plan (DRP) in Green Halo demonstrating that a minimum of 65% of the waste material generated will be recycled consistent with the provisions of the California Green Building Standards Code and the Cupertino Municipal Code. If a project includes both demolition and construction under separate permits, DRPs are required for each permit. 111.PCB ASSESSMENT AND MITIGATION IN ADVANCE OF DEMOLITION If demolition of an existing building(s) is planned, PCB testing and remediation is required prior to obtaining a demolition permit. Buildings constructed or remodeled from January 1, 1950 to December 31, 1980 must undergo representative sample testing and analysis by a certified analytical laboratory for PCB presence. A report on these findings must be submitted to the Environmental Programs Division. This requirement does not apply to remodeling and single-family residential and/or wood frame structures:
however, all demolition permit applicants must complete the PCB Screening Assessment Form to determine if the structure being demolished is deemed an applicable structure. No demolition permit will be issued until all required forms and reports have been satisfactorily submitted and approved by the Environmental Programs Division.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino on this 6th day of October, 2026, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:
________
Kitty Moore, Mayor
City of Cupertino
________________________
Date
ATTEST:
________________________ ________________________
Date
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Lauren Sapudar, City Clerk
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RESOLUTION NO.

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

APPROVING A VESTING TENTATIVE MAP FOR A

NEW RESIDENTIAL DEVELOPMENT PROJECT
CONSISTING OF 35-TOWNHOME-CONDOMINIUM UNITS,
ON TWO ADJACENT PARCELS, TOTALING 1.67-ACRES
LOCATED AT 1655 S. DE ANZA BLVD. AND 7357 PROSPECT ROAD; APNS: 366-10-061 & -126
SECTION I: PROJECT DESCRIPTION
Application No.: TM-2025-006
Applicant: Joshua Vrotsos (Dividend Homes)
Property Owner: Prospect Venture, LLC
Location: 1655 S. De Anza Blvd. & 7357 Prospect Road;
APNs: 366-10-061 & -126
SECTION II: FINDINGS FOR A TENTATIVE MAP:

WHEREAS, the Planning Commission of the City of Cupertino received an application for a Tentative Map as described in Section I of this resolution; and WHEREAS, the project is determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(1) of the CEQA Guidelines because the proposed project would meet the requirements of the Public Resources Code (PRC) Section 21080.66(a); and
WHEREAS, on September 8, 2026, the Planning Commission held a duly noticed public hearing to receive staff’s presentation and public testimony, and to consider the information contained in the Exemption Memorandum along with all staff reports, other pertinent documents, and all written and oral statements received prior to and at the public hearing; and
WHEREAS, on September 8, 2026 the Planning Commission recommended on a 5-0 vote that the City Council approve the Use Permit (U-2025-005) in substantially similar form to the Resolution presented (Resolution No. 2026-20), approve the Architectural and Site Approval Permit (ASA-2025-014) in substantially similar form to the Resolution presented (Resolution No. 2026-19), approve the Vesting Tentative Map (TM-2025-006) in substantially similar form to the Resolution presented (Resolution No. 2026-21), and approve the Tree Removal Permit (TR-2025-030), in substantially similar form to the Resolution presented (Resolution No. 2026-22); and
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WHEREAS, all necessary public notices having been given as required by the City of Cupertino Municipal Code and the Government Code, and the Planning Commission held at least one public hearing in regard to this application; and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Resolution; and
WHEREAS, the applicant has met the burden of proof required to support the application for a Tentative Map; and
WHEREAS, the City Council finds as follows with regard to this application:
a. That the proposed subdivision map is consistent with the City of Cupertino General Plan.

The subject property is consistent with the General Plan since the property is utilizing State Density Bonus Law to allow 26.5 dwelling units per acre, where the General Plan only allows 15 dwelling units an acre. Pursuant to CA GCS 65915(f)(2) which entitles the project to a 35% density bonus for providing 11.5% very low-income units on site. b. That the design and improvements of the proposed subdivision are consistent with the General Plan.

The off-site improvements are consistent with the City’s General Plan and South Sunnyvale-Saratoga Conceptual Zoning Plan policies related to applicable right-of-way design, undergrounding of utilities, interior circulation and applicable building setbacks and lot coverage standards. While the development is required to have a 35-50 foot landscape setback area from the curb on S. De Anza Blvd, and 25 foot landscape setback from the curb on Prospect Rd., state density bonus law requires the City to waive local development standards to accommodate a project that provides specific amounts of affordable housing, and still consider the design consistent with the General Plan and Specific Plan.
c. That the site is physically suitable for the type of development contemplated under the approved subdivision.

The proposed tentative map is compatible with the adjoining land uses and no physical constraints are present that would conflict with the anticipated land use and development.

Moreover, there are no topographical anomalies that differentiate this property from adjacent properties, the site is located on the valley floor and is not listed within any environmentally sensitive zone.
d. That the site is physically suitable for the intensity of development contemplated under the approved subdivision.
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The subject property is physically suitable in size and shape and in conformance to development standards and is configured to accommodate a multi-unit development like the one proposed.
e. That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish and wildlife or their habitat.

The design of the subdivision and proposed improvements will not injure fish and wildlife or their habitat because the property is a previously developed site, with no fish and wildlife habitat in the vicinity; the site is located in an urbanized area where residential land use is allowed.
f. That the design of the subdivision or the type of improvements associated therewith are not likely to cause serious public health problems.

The proposed subdivision design and improvements will not cause serious public health problems. The project has access to sewer connections, water services and electric services.

The on-site and off-site improvements improve neighborhood walkability through improved parkway and sidewalk construction with size-appropriate driveway curb-cuts and street and private tree planting. The design of the project aligns with the City’s Vision Zero policies in subdivision design.
g. That the design of the subdivision and its associated improvements will not conflict with easements acquired by the public at large for access through or use of property within the proposed subdivision.

No easement or right-of-way exists currently that would be impeded or conflict with the proposed subdivision. New public access easements will be required to address General Plan Mobility Element Policies M-2.5 and M-3.5.2, and Land Use Element Strategy LU22.5, as identified on the approved map. These easements shall be maintained to allow for public access through the property.

NOW, THEREFORE, BE IT RESOLVED:

The application for a Vesting Tentative Map, Application No. TM-2025-006, is hereby approved, and that the sub-conclusions upon which the findings and conditions specified in this Resolution are based and contained in the Public Hearing record concerning Application No. TM-2025-006 as set forth in the Minutes of the City Council Meeting of 187
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October 6, 2026 meeting, and are incorporated by reference as though fully set forth herein.

SECTION III: CONDITIONS ADMINISTERED BY THE COMMUNITY
DEVELOPMENT DEPT.

2. ACCURACY OF PROJECT PLANS
The applicant/property owner is responsible to verify all pertinent property data including but not limited to property boundary locations, building setbacks, property size, building square footage, any relevant easements and/or construction records. Any misrepresentation of any property data may invalidate this approval and may require additional review.

3. CONCURRENT APPROVAL CONDITIONS
The conditions of approval contained in file nos. U-2025-005, ASA-2025-014, and TR-2025-030 shall be applicable to this approval.

4. ANNOTATION OF THE CONDITIONS OF APPROVAL
The conditions of approval set forth shall be incorporated into and annotated on the first page of the building plans.

5. PUBLIC ACCESS REQUIREMENTS
In accordance with Mobility Element Policies M-2.5 and M-3.2 of the 2015-2040 Cupertino General Plan in effect in January 2024, the applicant shall maintain public access to the privately maintained streets and walkways where public access easements are shown on the Vesting Tentative Map.

6. CONSULTATION WITH OTHER DEPARTMENTS
The applicant is responsible to consult with other departments and/or agencies with regard to the proposed project for additional conditions and requirements.

Any misrepresentation of any submitted data may invalidate an approval by the Community Development Department.
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7. INDEMNIFICATION
As part of the application, to the fullest extent permitted by law, the applicant shall agree to indemnify, defend with the attorneys of the City’s choice, and hold harmless the City, its City Council, and its officers, employees, and agents (collectively, the “indemnified parties”) from and against any liability, claim, action, cause of action, suit, damages, judgment, lien, levy, or proceeding (collectively referred to as “proceeding”) brought by a third party against one or more of the indemnified parties or one or more of the indemnified parties and the applicant related to any Ordinance, Resolution, or action approving the project, the related entitlements, environmental review documents, finding or determinations, or any other permit or approval authorized for the project. The indemnification shall include but not be limited to damages, fees, and costs awarded against the City, if any, and cost of suit, attorneys’ fees, and other costs, liabilities, and expenses incurred in connection with such proceeding whether incurred by the Applicant, the City, or the parties initiating or bringing such proceeding.

The applicant shall agree to (without limitation) reimburse the City its actual attorneys’ fees and costs incurred in defense of the litigation. Such attorneys’ fees and costs shall include amounts paid to the City’s outside counsel and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the litigation reasonably incurred by City. The applicant shall likewise agree to indemnify, defend, and hold harmless the indemnified parties from and against any damages, attorneys’ fees, or costs awards, including attorneys’ fees awarded under Code of Civil Procedure section 1021.5, assessed or awarded against the indemnified parties. The Applicant shall cooperate with the City to enter a Reimbursement Agreement to govern any such reimbursement.

The Applicant shall agree that the City shall have no liability to the Applicant for business interruption, punitive, speculative, or consequential damages.

8. NOTICE OF FEES, DEDICATIONS, RESERVATIONS, OR OTHER EXACTIONS The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant 189
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to Government Code Section 66020(d) (1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), has begun. If you fail to file a protest within this 90-day period complying with all of the requirements of Section 66020, you will be legally barred from later challenging such exactions.

SECTION IV: CONDITIONS ADMINISTERED BY THE PUBLIC WORKS DEPT.

Except for otherwise noted, the following conditions must be completed and/or submitted prior to Final Map recordation.

9. STREET IMPROVEMENTS & DEDICATION
Roadway dedication in fee title and street improvements along the project frontage will be required to the satisfaction of the Director of Public Works. Street improvements, grading and drainage plans must be completed and approved prior to Final map approval.

Street improvements may include, but not be limited to, new detached sidewalk, new ADA ramp, driveways, storm drain lateral, street tree installations, and street light and/or pedestrian push button relocation. All improvements must be completed and accepted by the City prior to Building Final Occupancy or Street Improvement Encroachment Permit acceptance whichever comes first.

Additional comments will be provided and shall be incorporated prior to Final Map approval.

10. ACCEPTANCE OF PROPERTY RIGHTS
The Public Works Director, or his/her designee, shall have the authority to accept all offers of dedications, easements, quitclaims and other property rights and interests on behalf of the City.

11. PEDESTRIAN AND BICYCLE IMPROVEMENTS
Developer shall provide pedestrian and bicycle related improvements (e.g. walkway and bicycle racks, etc.) consistent with the Cupertino Bicycle Transportation Plan and the Pedestrian Transportation Plan, and as approved by the Director of Public Works. All improvements must be completed and accepted by the City prior to Building Final Occupancy or Street Improvement Encroachment Permit acceptance whichever comes first.
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12. STREET LIGHTING INSTALLATION
Street lighting shall be installed and shall be as approved by the Director of Public Works. Lighting fixtures shall be positioned so as to preclude glare and other forms of visual interference to adjoining properties, and shall be no higher than the maximum height permitted by the zone in which the site is located.

13. GRADING
Grading shall be as approved and required by the Director of Public Works in accordance with Chapter 16.08 of the Cupertino Municipal Code. 401 Certifications and 404 permits maybe required. Please contact Army Corp of Engineers and/or Regional Water Quality Control Board as appropriate.

14. DRAINAGE
Drainage shall be provided to the satisfaction of the Director of Public Works and satisfy any requirements from the environmental analysis. Hydrology and preand post-development hydraulic calculations must be provided to indicate whether additional storm water control measures are to be constructed or renovated. The storm drain system may include, but is not limited to, subsurface storage of peak stormwater flows (as needed), bioretention basins, vegetated swales, and hydrodynamic separators to reduce the amount of runoff from the site and improve water quality. The storm drain system shall be designed to detain water on-site (e.g., via buried pipes, retention systems or other approved systems and improvements) as necessary to avoid an increase of the ten percent flood water surface elevation to the satisfaction of the Director of Public Works. Any storm water overflows or surface sheeting should be directed away from neighboring private properties and to the public right of way as much as reasonably possible.

Additional comments will be provided and shall be incorporated prior to Final Map approval.

15. C.3 REQUIREMENTS
C.3 regulated improvements are required for all projects creating and/or replacing 5,000 S.F. or more of impervious surface, collectively over the entire project site.

The developer shall reserve a minimum of 4% of developable surface area for the placement of low impact development measures, for storm water treatment, 191
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unless an alternative storm water treatment plan, that satisfies C.3 requirements, is approved by the Director of Public Works.

The developer must include the use and maintenance of site design, source control and storm water treatment Best Management Practices (BMPs), which must be designed per approved numeric sizing criteria. A Storm Water Management Plan and a Storm Water Facilities Operation, Maintenance and Easement Agreement, and certification of ongoing operation and maintenance of treatment BMPs are each required.

All storm water management plans are required to obtain certification from a City approved third party reviewer.

16. SUBDIVISION AGREEMENT
The project developer shall enter into an Subdivision agreement with the City of Cupertino providing for payment of fees, including but not limited to checking and inspection fees, storm drain fees, transportation impact fees, park dedication fees and fees for under grounding of utilities. Said agreement and fees shall be executed and paid prior to issuance of Final Map approval.

Fees:
a. Checking & Inspection Fees: Per current fee schedule ($6,203 or 5% of ___________________________improvement costs)
b. Grading Permit: Per current fee schedule ($5,365 or 6% of improvement costs)
c. Tract Map Fee: Per current fee schedule ($15,013)
d. Storm Drainage Fee: Per current fee schedule (residential: $4,548 per AC + $345 per unit)
e. Transportation Impact Fee: Per current fee schedule: (residential: $4,215 per unit)
f. Park Fees: Per current fee schedule: $54,000 per unit ($1,620,000 based on 30 new units, 5 BMR are
waived.
g. Storm Management Plan Fee Per current fee schedule ($2,432) h. Street Tree Fee: By Developer or Per current fee schedule:
$562 per tree
i. Developer contribution: $12,500 fee for the future development of a _______________________ Gateway monument sign at the median ___________________________ of De Anza Blvd.
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Bonds:
a. Faithful Performance Bond: 100% of Off-site and On-site Improvements b. Labor & Material Bond: 100% of Off-site and On-site Improvement c. On-site Grading Bond: 100% of site improvements.

The fees described above are imposed based upon the current fee schedule adopted by the City Council. However, the fees imposed herein may be modified at the time of recordation of a final map or issuance of a building permit in the event of said change or changes, the fees changed at that time will reflect the then current fee schedule.

17. FINAL MAP
A final map will be subject to City Council approval and shall be recorded prior to issuance of building permits. Existing buildings must be demolished prior to recordation of the final map as building(s) cannot straddle between lot lines.

18. TRANSPORTATION
The Project is subject to the payment of Transportation Impact Fees under City’s Transportation Impact Fee Program (Chapter 14.02 of the Cupertino Municipal Code).

19. PARKS
The residential project is subject to the payment of park fees in-lieu of park land dedication under City’s Park Land Dedication Fee (Chapter 13.08 of the Cupertino Municipal Code).

20. SURVEYS
A Boundary Survey and a horizontal control plan will be required for all new construction to ensure the proposed building will be set based on the boundary survey and setback requirements.

21. TRASH, RECYCLING AND COMPOST ENCLOSURES
Trash enclosure plans must be designed in accordance with the City’s “Public Works Guidelines posted at www.cupertino.org/nowaste, and to the satisfaction of the Environmental Programs Manager. Clearance by the Public Works Department is required prior to obtaining a building permit (CMC 9.18.210 H & K).

Applicant shall enter into an agreement with the City that indemnifies and holds harmless both the City and the refuse and recycling collection company (Recology) 193
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from and against any harm, damage or maintenance that may occur or become necessary to onsite paving stone driveway surfaces.

22. OPERATIONS & MAINTENANCE AGREEMENT
Developer shall enter into an Operations & Maintenance Agreement with the City before Final Map approval. The Agreement shall include the operation and maintenance for non-standard appurtenances in the public road right-of-way that may include, but is not limited to, sidewalk, pavers, and street lights.

23. UNDERGROUND UTILITIES
Developer shall comply with the requirements of the Underground Utilities Ordinance No. 331 and other related Ordinances and regulations of the City of Cupertino, and shall coordinate with affected utility providers for installation of underground utility devices. Developer shall submit detailed plans showing utility underground provisions. Said plans shall be subject to prior approval of the affected Utility provider and the Director of Public Works.

24. TRANSFORMERS & CABINETS
Electrical transformers, telephone cabinets and similar equipment shall be placed in underground vaults. The developer must receive written approval from both the Public Works Department and the Community Development Department prior to installation of any above ground equipment. Should above ground equipment be permitted by the City, equipment and enclosures shall be screened with fencing and landscaping such that said equipment is not visible from public street areas, as determined by the Community Development Department.

Transformers shall not be located in the front or side building setback area.

25. WATER BACKFLOW PREVENTERS
Domestic and Fire Water Backflow preventers and similar above ground equipment shall be placed away from the public right of way and site driveways to a location approved by the Cupertino Planning Department, Santa Clara County Fire Department and the water company.

26. BEST MANAGEMENT PRACTICES
Utilize Best Management Practices (BMPs), as required by the State Water Resources Control Board, for construction activity, which disturbs soil. BMP plans shall be included in grading and street improvement plans.

27. NPDES CONSTRUCTION GENERAL PERMIT
When and where it is required by the State Water Resources Control Board (SWRCB), the developer must obtain a Notice of Intent (NOI) from the SWRCB, 194
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which encompasses preparation of a Storm Water Pollution Prevention Plan (SWPPP), use of construction Best Management Practices (BMPs) to control storm water runoff quality, and BMP inspection and maintenance.

28. EROSION CONTROL PLAN
Developer must provide an approved erosion control plan by a Registered Civil Engineer. This plan should include all erosion control measures used to retain materials on site. Erosion control notes shall be stated on the plans.

29. WORK SCHEDULE
Every 6 months, the developer shall submit a work schedule to the City to show the timetable for all grading/erosion control work in conjunction with this project.

30. TRAFFIC CONTROL PLAN
The developer must submit a traffic control plan by a Registered Traffic Engineer to be approved by the City. The plan shall include a temporary traffic control plan for work in the right of way as well as a routing plan for all vehicles used during construction. All traffic control signs must be reviewed and approved by the City prior to commencement of work. The City has adopted Manual on Uniform Traffic Control Devices (MUTCD) standards for all signage and striping work throughout the City.

31. STREET TREES
Street trees shall be planted within the Public Right of Way to the satisfaction of the Director of Public Works and shall be of a type approved by the City in accordance with Ordinance No. 125.

32. FIRE PROTECTION
Fire sprinklers shall be installed in any new construction to the approval of the City.

33. SANTA CLARA COUNTY FIRE DEPARTMENT
A letter of clearance for the project shall be obtained from the Santa Clara County Fire Department prior to issuance of building permits. Clearance should include written approval of the location of any proposed Fire Backflow Preventers, Fire Department Connections and Fire Hydrants (typically Backflow Preventers should be located on private property adjacent to the public right of way, and fire department connections must be located within 100’ of a Fire Hydrant). 195
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34. FIRE HYDRANT
Fire hydrants shall be located as required by the City and Santa Clara County Fire Department as needed.

35. SAN JOSE WATER SERVICE COMPANY CLEARANCE
Provide San Jose Water Service Company approval for water connection, service capability and location and layout of water lines and backflow preventers before Final Map approval.

36. DEDICATION OF UNDERGROUND WATER RIGHTS
Developer shall “quit claim” to the City all rights to pump, take or otherwise extract water from the underground basin or any underground strata in the Santa Clara Valley.

37. SANITARY DISTRICT
A letter of clearance or sign off of street improvement plans for the project shall be obtained from the Cupertino Sanitary District prior to Final Map approval.

38. UTILITY EASEMENTS
Clearance approvals from the agencies with easements on the property (including PG&E, AT&T, and San Jose Water Company, and/or equivalent agencies) will be required prior to Final Map approval.

39. RECIPROCAL EASEMENT AMENDMENT
Developer shall provide the recorded amended reciprocal easement document prior to Final Map recordation.

40. LANDSCAPE MAINTENANCE DISTRICT
In the event that a Landscape Maintenance District is established for the medians along South De Anza Boulevard, the property owner shall agree to join and participate in the district, including payment of the corresponding fees.

SECTION V: CONDITIONS ADMINISTERED BY THE CUPERTINO SANITARY

DISTRICT

41. INSTALLERS AGREEMENT
The property owner shall enter into an Installer’s Agreement with the District for the construction of the proposed sewer infrastructure and associated fees prior to issuance of Building Permits.

The following fees will be required during the Building Permit phase as part of the Installer’s Agreement:
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a. Sewer Connection Fee: The property owner shall pay all required Cupertino Sanitary District Sewer Connection Fees – New Townhome/Condominium ($9,859.00/per unit) (O.C.7201).
b. Treatment Plant Capacity Fee: Cupertino Sanitary District Treatment Plant Capacity Fee – Townhouse/Condominium ($3,495) is required for the subject improvements. (O.C. 7202).
c. Peak Wastewater Flow Mitigation Fee
d. District Administration, Engineering, and Inspection Fees (including permit processing, plan check, and permanent disconnecting and capping fees for existing lateral O.C. 7101)

42. Design Requirements
a. Parcels 366-10-061 and 366-10-126 will be joined into one large parcel for the commercial and garage buildings. Each townhome will have their own parcel number.
b. Each unit must have a separate Property Line Cleanout on its lateral. Maintain a minimum horizontal separation of 10 feet between sewer and water service lines.
c. All off-site and on-site sewer manholes must be constructed in accordance with District standards.
d. Sewer line gradients must be clearly shown and maintain a minimum slope of 2%.
e. An approved backflow device (IAPMO or UPC approved) is required IF the lowest finished floor with plumbing is less than (1’) foot above the rim of the nearest upstream manhole (O.C. 4105).
f. Trees should be planted 10' from the sanitary sewer line to prevent root intrusion. Alternatively, the sewer line should be sleeved to protect the pipe from root intrusion.
g. Building Permit Phase – Sewer Plan and profile views of all on-site sanitary sewer manholes, sewer mains, and laterals are required. h. Please refer to District Standard Details for the proposed sanitary sewer works and connections.

43. MODIFICATIONS TO BUILDING PERMIT PLANS:

The following corrections/Clarifications Shall be made in the Building Permit Plans.
a. Sheet C5.0: Please show the existing sanitary sewer lateral on the plans and indicate that it will be abandoned and permanently capped at its connection to the existing sanitary sewer mainline/manholes. (The proposed development is shown to have an entirely new sanitary sewer system.) For 197
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reference, the existing lateral is 4-inch diameter VCP, 31 feet long, and located approximately 6 feet from the right property line. b. Sheet C5.0: Please show the following existing sanitary sewer facilities, see details below for reference:
i. Upstream MH T-560: Rim Elev. 301.00; Invert/Outlet Elev. =291.35; Depth 9.65 ft.
ii. Downstream MH PROS-01 (replaced FI-T-55F): Rim Elev. 303.75; Depth = 9.24 ft.
iii. Existing sanitary sewer mainline along S. De Anza Blvd.: approximately 156 feet of 10-inch-diameter VCP.
c. Sheet C5.0, C5.1 & C5.2: Sanitary Sewer Laterals. Laterals shown in the plan views are connected to both sides of the sanitary sewer mainline at the same station. The District does not allow this configuration. Please stagger or offset the lateral connections along the mainline and maintain a minimum 2-foot clear separation between lateral connections. Please provide the lateral locations and elevations accordingly.
d. Sheet C5.0, C5.1 & C5.2: Sanitary Sewer Laterals. Provide the sanitary sewer lateral depth (from the PLCO to the sanitary sewer main) , diameter and elevations for all proposed laterals.
e. Sheet C5.0, C5.1 & C5.2: Manhole Details. Provide a sanitary sewer manhole (SSMH) channel detail for all proposed new manholes.
f. Sheet C5.0, C5.1 & C5.2: Manhole Details. Clearly label the proposed new manholes as SSMH #1, SSMH #2, and SSMH #3. Please provide the pipe invert/flowline elevations at the manholes. Clearly identify the invert elevations as “INV” on the plans. The indicated INV elevation shall represent the pipe invert/flowline elevation at the manhole. g. Sheet C5.0, C5.1 & C5.2: Manhole Details. Provide the location of each proposed SSMH, including the distance to the nearest upstream or downstream manhole.
h. Sheet C5.0, C5.1 & C5.2: Vertical Clearance. Show the vertical clearance between the bottom of the storm drain, including other utilities, and the top of the proposed sanitary sewer (SS). Provide sufficient dimensions/elevations on the profile to demonstrate the available clearance.

44. EASEMENTS
a. As the proposed sewer lines will be located on private property, the District will require an easement on these parcels for the installation of the sanitary sewer mainlines and laterals.
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b. Sanitary Sewer Easements must be granted to CuSD for all mainlines located within the property.
c. The applicant must provide a Plat and Legal Description of the Public Sanitary Sewer Easement for District review.
d. The District will allow removal of sanitary sewer easement (SSE) if the sewer improvements are located within a proposed Public Utility Easement (PUE) shown and recorded on the Final Map.
e. The easement deed must be prepared, executed, and recorded with the County Recorder’s Office prior to project acceptance.

45. ADDITIONAL REQUIREMENTS
a. Approval of the Building Permit is subject to available system capacity at the time of review.
b. A sand/oil separator is required if a trash enclosure is being installed. c. The installation of interior grease traps or exterior grease interceptors may be required for commercial buildings, contingent upon their intended use. d. Storm water surface or roof drains and other general surface water runoff shall not be discharged to the sanitary sewer.
e. The cleanout is required to be protected with a (G-5) Christy Box. If the cleanout is installed in the driveway or may be subject to traffic, the District strongly recommends the lid to have a traffic rated bolt-down grate. The box must be set and conform to the pavement finished grade. The cleanout must not be covered up by pavers or any other materials that will make the cleanout inaccessible. (O.C. 4101).

CITY ENGINEER'S CERTIFICATE OF

ACCEPTANCE OF ENGINEERING/SURVEYING CONDITIONS
(Section 66474.18 California Government Code)
I hereby certify that the engineering and surveying conditions specified in Section IV. of this Resolution conforms to generally accepted engineering practices. ___________________________
Chad Mosley, Assistant Director of Public Works
City Engineer CA License 66077
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6th day of October, 2026, by the following vote:

Members of the City Council
AYES:

NOES:

ABSENT:

ABSTAIN:

A RESOLUTION OF THE CUPERTINO CITY COUNCIL

APPROVING A TREE REMOVAL PERMIT FOR THE REMOVAL AND
REPLACEMENT OF 16 DEVELOPMENT TREES
LOCATED AT 1655 S. DE ANZA BLVD. AND 7357 PROSPECT ROAD; APNS: 366-10-061& -126
SECTION I: PROJECT DESCRIPTION
Application No.: TR-2025-030
Applicant: Joshua Vrotsos (Dividend Homes)
Property Owner: Prospect Venture, LLC
Location: 1655 S. De Anza Blvd. & 7357 Prospect Road.;
APNs: 366-10-061 & -126
SECTION II: FINDINGS FOR A TREE REMOVAL PERMIT:

WHEREAS, the Planning Commission of the City of Cupertino received an application for a Tree Removal Permit as described in Section I of this resolution; and WHEREAS, the project is determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(1) of the CEQA Guidelines because the proposed project would meet the requirements of the Public Resources Code (PRC) Section 21080.66(a); and
WHEREAS, on September 8, 2026 , the Planning Commission held a duly noticed public hearing to receive staff’s presentation and public testimony, and to consider the information contained in the Exemption Memorandum along with all staff reports, other pertinent documents, and all written and oral statements received prior to and at the public hearing; and
WHEREAS, on September 8, 2026 the Planning Commission recommended on a 5-0 vote that the City Council approve the Use Permit (U-2025-005) in substantially similar form to the Resolution presented (Resolution No. 2026-20), approve the Architectural and Site Approval Permit (ASA-2025-014) in substantially similar form to the Resolution presented (Resolution No. 2026-19), approve the Vesting Tentative Map (TM-2025-006) in substantially similar form to the Resolution presented (Resolution No. 2026-21), and approve the Tree Removal Permit (TR-2025-030), in substantially similar form to the Resolution presented (Resolution No. 2026-22); and
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WHEREAS, all necessary public notices having been given as required by the City of Cupertino Municipal Code and the Government Code, and the Planning Commission held at least one public hearing in regard to this application; and WHEREAS, the City Council of the City of Cupertino is the decision-making body for this Resolution; and
WHEREAS, the applicant has met the burden of proof required to support the application for a Tree Removal Permit; and
WHEREAS, the City Council finds as follows with regard to this application:
a) That the location of the trees restricts the economic enjoyment of the property by severely limiting the use of property in a manner not typically experienced by owners of similarly zoned and situated property, and the applicant has demonstrated to the satisfaction of the approval authority that there are no reasonable alternatives to preserve the tree(s).

To accommodate for the new development’s structures, walkways and internal street network, the existing trees cannot be preserved in their locations. The applicant proposes to provide replacement trees throughout the site, in conformance with the Municipal Code Ordinance requirements. The project proposes to locate the replacement trees where tree coverage is needed, while protecting all off site trees on private property that are adjacent to the project site.

NOW, THEREFORE, BE IT RESOLVED:

That after careful consideration of maps, facts, exhibits, testimony and other evidence submitted in this matter, subject to the conditions which are enumerated in this Resolution, beginning on PAGE 3 herein, and subject to the conditions contained in all other Resolutions approved for this Project
The application for a Tree Removal Permit, Application No. TR-2025-030, is hereby approved, and that the sub-conclusions upon which the findings and conditions specified in this Resolution are based are contained in the Public Hearing record concerning Application no. TR-2025-030 as set forth in the Minutes of the City Council Meeting of October 6, 2026 Meeting, and are incorporated by reference as though fully set forth herein.

SECTION III: CONDITIONS ADMINISTERED BY THE COMMUNITY DEVELOPMENT DEPT.

1. APPROVED EXHIBITS
Approval is based on the plan set entitled “1655 S De Anza Blvd Major 202
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Architectural and Site Approval Application Cupertino, CA” consisting of 74 sheets labeled as, P.1– P.5, A.1 – A.27, TM1.0, C2.0-C7.3, T1.0 - T1.4, L1.1 – L3.2, INT1, INT2, PrPM1, PrSL1 and PrSL2, drawn by Dahlin [Architect] Group, BKF [Civil] Engineering and Michael Arnone [Landscape Architect] + Associates, except as may be amended by conditions in this resolution.

3. CONCURRENT APPROVAL CONDITIONS
The conditions of approval contained in file nos. TM-2025-006, ASA-2025-014, and U-2025-005 shall be applicable to this approval.

4. ANNOTATION OF THE CONDITIONS OF APPROVAL
The conditions of approval set forth shall be incorporated into and annotated on the first page of the building plans.

5. TREE RETENTION
In accordance with the approved, peer-reviewed arborist report for this project, the applicant is required to retain and protect in-place the following on-site trees:
a. Thirty-two (32) Italian Cypress, tree IDs 263-275, 277-279, 281-292 & 297-300, b. Three (3) Hollywood Juniper, tree IDs 262, 276 & 280, and c. One (1) Coast Redwood, tree ID 312.

Additionally, the applicant is required to retain and protect in-place the following offsite trees:
a. Four (4) Eucalyptus, tree IDs 245, 248, 249 & 494.
b. Two (2) London Plane, tree IDs 246 & 247.
c. Five (5) Australian Brush Cherry, tree IDs 252-256.
d. Three (3) Elms, tree IDs 1, 313 & 314.
e. Four (4) Coast Live Oaks, tree IDs 243, 244, 250 & 251. f. Eight (9) Coast Redwoods, tree IDs, 2, 3, 4, 242 & 257-261.

Tree IDs 242-251 & 494 are located on the neighboring property to the north, 1601 S.

De Anza Blvd., and has an active application (ASA-2025-017) on file with the city to redevelop the site with a new housing development. The neighboring project scope includes the removal of all on-site trees along the shared property line between the 203
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two sites. Until this neighboring project is approved for removal and demolition of the site and improvements occurs, the property owner of 1655 S. De Anza is required to implement tree protection measures.

6. TREE PROTECTION ZONES AND MEASURES AND SOUND WALL
CONSTRUCTION MEASURES:

Tree Protection Zones (TPZ) shall be established, and maintained continuously unless allowed below, as follows during the duration of construction:
a. Tree IDs 242-251 and 494 are located on the neighboring property to the north, 1601 S. De Anza Blvd.
i. Tree protection fencing should be installed along the edge of the canopy line of the trees located along the existing wall along the north property line. The fencing may only be temporarily removed to remove the existing hardscape under the existing tree canopy. The fencing must be re-installed immediately upon removal of the hardscape.
ii. Once the fencing is re-installed, any excavation or grading that occurs within the TPZ must be done under the ISA-certified Project Arborist’s supervision.

De Anza Blvd.
i. Tree protection fencing should be installed along the edge of the planting strip. If the planter is replaced, then an excavation or grading that occurs should be done under an ISA certified Project arborist’s supervision. ii. Once the fencing is re-installed, any excavation or grading including that required for sound wall installation under (iii) below, that occurs within the TPZ should be done under ISA-certified Project Arborist supervision onsite.

Impacts are expected to be moderate due to the amount of work occurring with the TPZ of the tree. The following are required to ensure the highest chance of survival of this tree:
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i. The tree protection fencing shall be installed at the dripline of the tree. ii. The fencing may only be temporarily removed when the existing hardscape is removed with ISA-certified Project Arborist supervision. Fence must be reinstalled immediately upon removal of the existing hardscape. Once the work is completed, the fencing shall be re-installed at the dripline of the tree promptly upon removal of the hardscape.
iii. Once the fencing is re-installed, any excavation or grading including that required for sound wall installation under (iv) below, that occurs within the TPZ should be done under ISA-certified Project Arborist supervision onsite.

Any roots 2-inches or greater in diameter may only be removed with the approval of the ISA certified Project Arborist under their supervision and all recommendations must be followed.
iv. The proposed sound wall shall be installed with a pier and beam to reduce root pruning impacts. This design must be included on all building permit plans which are to be reviewed for compliance prior to issuance of building permits by the Planning Division. During the installation of the footing, the ISA-certified Project Arborist shall monitor the work, the project applicant must allow the arborist the discretion to approve or deny the pruning of large roots in order to retain this tree, this will ensure that less than 25% of the roots are impacted by the proposed project.
d. Tree IDs 297-300 are located on-site and are proposed to be retained and protected in place. The impacts are expected to be low to moderate since work may occur within the TPZ of the trees to be retained.
i. The tree protection fencing will be installed along the dripline of the trees. The fencing may only temporarily be removed when the existing hardscape is removed with ISA-certified Project Arborist supervision. The fencing shall be promptly re-installed upon completion of the hardscape removal along the dripline of the tree.
ii. Once the fencing is re-installed, any excavation or grading including that required for sound wall installation under (iii) below, that occurs within the TPZ should be done under ISA-certified Project Arborist supervision onsite.

The fencing shall be promptly re-installed upon completion of the hardscape removal.
iii. Upon re-installation of the fence, any excavation or grading that occurs within the TPZ shall only be done under ISA-certified Project Arborist supervision onsite. Any roots 2-inches or greater in diameter may only be removed with the approval of the ISA-certified Project Arborist under their supervision and all recommendations must be followed.
f. Tree ID 3 is located on a neighboring property to the west and is expected to have none to low impacts. The tree will be protected by the existing fence that is in place along the shared property line. Additionally, tree protection fencing is proposed at adjacent trees located on site, no additional tree protection fencing needs to be installed for tree ID 3.
g. Tree ID 4 is located in the public rights-of-ways but is not a Public Works city street tree. The tree currently helps to obscure offsite views between the existing singlefamily home to the west and the subject site. i. Tree protection fencing shall be installed along the edge of the property line. It may not be removed during the course of construction unless approved plans indicate construction with the TPZ. Any excavation or grading that occurs within the TPZ shall be done under the ISA-certified Project Arborist supervision.
ii. Any roots 2-inches or greater in diameter may only be removed with the approval of the ISA certified Project Arborist under their supervision and all recommendations must be followed.
h. Tree IDs 262-292 are located on-site and are proposed to be retained and protected in place. All trees are located along west property line at the edge of the parking lot. The trees are all expected to have low to moderate impacts due to work occurring within the TPZ of the trees to be retained.
i. The tree protection fencing shall be installed along the dripline of the trees. The fencing may only be temporarily removed when the existing hardscape is removed with ISA-certified Project Arborist supervision onsite. The fencing shall be promptly re-installed upon completion of the hardscape removal along the dripline of the tree.
ii. Once the fencing is re-installed, any excavation or grading including that required for sound wall installation under (iii) below, that occurs within the 206
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TPZ should be done under ISA-certified Project Arborist supervision onsite.

7. TREE REPLACEMENT SIZE
The applicant shall provide adequate tree replacements for trees proposed to be removed in conformance with the replacement guidelines per Cupertino Municipal Code Section 14.18.160. The required tree replacement for the project is thirteen (13) 36” box trees or twenty-eight (28) 24” box trees, or a combination thereof that meets the minimum requirements. If the planting schedule is modified, the size of the proposed replacement trees shall be consistent with the following requirements of the City’s Protected Tree Ordinance unless deemed infeasible by the Director of Community Development in consultation with the City’s Consulting Arborist, at applicant cost:
• Diameter of trunk size of removed tree up to 12 inches shall be replaced with one 24-inch box tree;
• Over 12 inches and up to 36 inches shall be replaced by two 24-inch box tree or one 36-inch box tree; and
• Over 36 inches shall be replaced with one 36-inch box tree.

Should it be determined that planting of replacement trees in the quantity or a portion of the quantity specified above cannot be accomplished in accordance with best forestry management practices, the applicant shall pay an in-lieu fee for each tree not replaced on-site in accordance with the in-lieu fee requirements outlined in Municipal Code Section 14.18.160(B).

8. ARBORIST REVIEW
Prior to building permit issuance, any modifications to the approved landscape plan including, but not limited to, the number, location, and species of replacement trees, shall be reviewed and approved by the City in consultation with the City’s Consulting Arborist, at the applicant’s cost. All replacement trees shall be planted prior to final building inspection. The Applicant shall provide the Department of Community Development adequate documentation, including, but not limited to, photographs, receipts or invoices, to verify that replacement trees have been planted. The City’s consulting arborist shall inspect the trees after planting and a report ascertaining the 207
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good health of the trees mentioned above shall be provided prior to issuance of final occupancy for any of the residential units.

9. TREE PROTECTION
a. The project applicant shall retain an ISA-certified Project Arborist to be onsite for any construction activity, grading and or excavation in the Tree Protection Zone (TPZ)
b. As part of the demolition or building permit drawings, a tree protection plan shall be prepared by the ISA-certified project arborist for the trees to be retained. In addition, the following measures shall be added, at a minimum, to the protection plan:
• Install TPZ fencing at the calculated TPZ listed in Table 2 of the Arborist Report, at the pavement edge of the trees to be retained and remain in place for the entirety of the project. Access into the TPZ should not be allowed unless determined to be necessary and only under the supervision of an ISA-certified project arborist. The fence shall be a minimum of five feet in height and shall be set securely in place. The fence shall be of a sturdy but open material (i.e., chain link), to allow visibility to the trunk for inspections and safety. The fence shall be in place until construction has been completed. There shall be no storage of any kind within the protective fencing. TPZs shall be constructed in such a fashion as to not be easily moved or dismantled. • As the proposed building(s) are within the TPZ’s, the fencing may be moved in as needed but should be returned to the TPZ edge as soon as possible. • “Tree Protection Area - Keep Out” or similar signs shall accompany the TPZ fencing every 15 feet and include contact information to report violations. • Any excavation within the TPZ must be hand-dug, or done with pneumatic air spade or hydro-vac, and should be monitored by the ISA-Certified Project Arborist. All impacts shall be documented.
• Any roots >2-inch diameter may only be pruned with review and approval from the ISA-certified Project Arborist who must be onsite to observe the work. • All heavy equipment must remain outside of the TPZ. No stockpiling of materials, vehicular traffic, or storage of equipment or machinery shall be allowed inside the TPZ.
• All pruning shall be done by a Certified Arborist or Certified Tree Worker in accordance with the Best Management Practices for Pruning (International Society of Arboriculture, 2002) and adhere to the most recent editions of the American National Standard for Tree Care Operations (Z133.1 and Pruning (A300).
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• TPZs shall remain in place for the entirety of the project and only removed, temporarily or otherwise, by the ISA Certified Project Arborist after submission and approval of intent.
• Trees on-site shall be irrigated regularly.
• If the soil within the TPZ is compacted, then aerate the soil using an air spade to alleviate compaction and promote the flow of oxygen and water to the roots. • Add a 3-inch layer of mulch to the portion of the root zone protected by the TPZ. Be sure not to cover/bury the tree root collar. Mulch aids the soil in water retention and also helps insulate the soil from hot and cold weather extremes. • Where possible, add a 4-6-inch layer of wood chips over any parts of a root zone not protected by the TPZ. This will aid in reducing the impact of soil compaction from foot traffic and/or heavy equipment during the upcoming construction activities.
c. The tree protection measures shall be inspected and approved by the ISA-certified project arborist prior to issuance of demolition, grading or building permits. d. A report ascertaining the good health of the trees mentioned above shall be provided by the applicant’s arborist, to be peer reviewed by the City’s Consulting Arborist, prior to issuance of final occupancy.

10. PROTECTED TREES
The applicant and future property owners understand that the replacement trees and all other trees approved with this development may not be removed without the prior approval by the Community Development Department of a Tree Removal Permit and that they shall be responsible for ensuring the proper maintenance and care of the trees. The applicant shall also disclose the location and species of all replacement and development trees on site upon sale of the property.

11. CONSULTATION WITH OTHER DEPARTMENTS
The applicant is responsible for consulting with other departments and/or agencies with regard to the proposed project for additional conditions and requirements. Any misrepresentation of any submitted data may invalidate an approval by the Community Development Department.

12. INDEMNIFICATION
As part of the application, to the fullest extent permitted by law, the applicant shall agree to indemnify, defend with the attorneys of the City’s choice, and hold harmless the City, its City Council, and its officers, employees, and agents (collectively, the “indemnified parties”) from and against any liability, claim, action, cause of action, suit, damages, judgment, lien, levy, or proceeding (collectively referred to as “proceeding”) brought by a third party against one or 209
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more of the indemnified parties or one or more of the indemnified parties and the applicant related to any Ordinance, Resolution, or action approving the project, the related entitlements, environmental review documents, finding or determinations, or any other permit or approval authorized for the project. The indemnification shall include but not be limited to damages, fees, and costs awarded against the City, if any, and cost of suit, attorneys’ fees, and other costs, liabilities, and expenses incurred in connection with such proceeding whether incurred by the Applicant, the City, or the parties initiating or bringing such proceeding.

The applicant shall agree to (without limitation) reimburse the City its actual attorneys’ fees and costs incurred in defense of the litigation. Such attorneys’ fees and costs shall include amounts paid to the City’s outside counsel and shall include City Attorney time and overhead costs and other City staff overhead costs and any costs directly related to the litigation reasonably incurred by City. The applicant shall likewise agree to indemnify, defend, and hold harmless the indemnified parties from and against any damages, attorneys’ fees, or costs awards, including attorneys’ fees awarded under Code of Civil Procedure section 1021.5, assessed or awarded against the indemnified parties. The Applicant shall cooperate with the City to enter a Reimbursement Agreement to govern any such reimbursement.

The Applicant shall agree that the City shall have no liability to the Applicant for business interruption, punitive, speculative, or consequential damages.

13. NOTICE OF FEES, DEDICATIONS, RESERVATIONS, OR OTHER EXACTIONS The Conditions of Project Approval set forth herein may include certain fees, dedication requirements, reservation requirements, and other exactions. Pursuant to Government Code Section 66020(d) (1), these Conditions constitute written notice of a statement of the amount of such fees, and a description of the dedications, reservations, and other exactions. You are hereby further notified that the 90-day approval period in which you may protest these fees, dedications, reservations, and other exactions, pursuant to Government Code Section 66020(a), has begun. If you fail to file a protest within this 90-day period complying with 210
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all of the requirements of Section 66020, you will be legally barred from later challenging such exactions.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 6th day of October, 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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Housing Accountability Act (HAA)
The Housing Accountability Act (HAA), codified in California Government Code § 65589.5, prohibits cities from disapproving, or adding conditions of approval that would render infeasible, a housing development project unless the proposal is found to be in violation of an objective general plan or zoning standard, unless otherwise waived or reduced through use of the Density Bonus law, or the project will result in a specific adverse impact to public health and safety. While changes to the project may be applied by the decision-making, or hearing body to further applicable City goals, policies, and strategies – any changes required by the decision-making, or hearing body that are not based on objective standards may not result in making the project, as proposed, infeasible or reduce the number of housing units.

Housing Crisis Act (HCA)
The Housing Crisis Act (HCA), adopted in 2019 under Senate Bill 330, and amended in 2021 by Senate Bill 8, broadly aims to address actions that would decrease or delay the approval and development of new housing by requiring the timely processing of permits by local agencies. Among many components, the law includes a provision to allow applicants to vest ("lock-in") fees, ordinances, policies, and standards that are in effect at the time of submittal of a SB330 preliminary application to the City. Only the limited information specified in State law is required for the submittal of a SB330 preliminary application. Further, the law prohibits the City from conducting more than five hearings, or meetings, in connection with the approval of a housing development project.

State Density Bonus Law (SDBL)
California’s Density Bonus Law (SDBL), codified in California Government Code § 65915- 65918, aims to promote and facilitate the creation of affordable units in new housing projects by allowing:
• A density "bonus" that allows for an increase to a property’s base density (I.e., more market rate units than allowed by the density, as determined by the specific percentage and level of affordability of the affordable units included in a project.); • Unlimited waivers to development standards that would physically preclude the construction of the project as designed (I.e., modifications or elimination of any development standard);
• Concessions that modify development standards to achieve an identifiable and actual cost reduction (i.e., Specified number of incentives as identified in state law based on the level of affordability and percentage of affordable units ); and • Reduced parking standards. Parking standards identified in state law by project type, proximity of transit facilities, affordability level of the development (or affordable units) and/or number of bedrooms ).
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PRELIMINARY SITE PLAN
C3.0
160 West Santa Clara, Suite 800
San Jose, CA 95112
408-467-9100
20250884
08-27-2026
JOB NO.

DATE
12-31-27
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Corporate Headquarters
1500 North Mantua Street
P.O. Box 5193
Kent, OH 4240-5193
330-673-5685
Toll Free 1-800-828-8312
Fax: 330-673-0860
Western Region Office
6005 Capistrano Ave.

Atascadero, CA 93422

August 10, 2026
Joshua Vrotsos
Dividend Homes, Inc.

[email protected]
RE: Supplemental Arborist Report for trees at 1655 De Anza Blvd., Cupertino, CA.

Dear Joshua,
Thank you for contacting Davey Resource Group (DRG) regarding your project listed above. In support of your objectives, Davey Resource Group is providing you with this letter regarding a supplemental arborist report to support the previous arborist report by Ray Morneau, dated August 2025 and updated March 2026.

The inspection and tree protection measures at your project site to help ensure the resilience and longevity of the trees beyond construction.

A DRG International Society of Arboriculture (ISA) Certified Arborist #WE-14060A conducted the site visit on June 4, 2026. Five (5) new trees were assessed and sixty four (64) trees were re-assessed for a total of sixty nine (69) trees. DRG conducted an additional site visit on August 5, 2026 to re-assess the ten (10) remaining trees on the property. There are a total of seventy nine (79) trees assessed. DRG assessed and developed a tree protection plan for specific trees identified by the client and the City of Cupertino as related to the alternative proposed development at 1655 De Anza Blvd. in Cupertino, CA.

Trees #242-252 have different tags vs tree #’s due to the trees being physically tagged with the numbers #452, 488-498 on them rather than the previous number system that Ray used.

The remaining ten (10) trees (#241,303-311) were not originally requested by the client for reassessment and were not part of the original scope of work. DRG has since then assessed the remaining trees.

Photo documentation of the new trees are included with this letter. The client or the City of Cupertino may request additional photos.

Any work performed within the tree protection zone, such as trenching, should be monitored by an ISA Certified Arborist.

Please feel free to contact me if you would like more information or have any questions.

Sincerely,
Sabrina Huey
ISA Certified Arborist ® WE-14060A
TRAQ Qualified
Davey Resource Group, Inc.
www.daveyresourcegroup.com
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Arborist and Tree
Protection Report
1655 De Anza Blvd., Cupertino
June 2026
Prepared For:

Joshua Vrotsos
Divided Homes, Inc
Prepared By:

Davey Resource Group, Inc.

Sabrina Huey
ISA Certified Arborist
WE-14060A
ISA Tree Risk Assessment Qualified
Notice of Disclaimer
Inventory data provided by Davey Resource Group is based on visual recording at the time of inspection. Visual records do not include testing or analysis and do not include aerial or subterranean inspection. Davey Resource group is not responsible for discovery or identification of hidden or otherwise non-observable risks. Records may not remain accurate after inspection due to variable deterioration of inventoried material and site disturbance. Davey Resource Group provides no warranty with respect to the fitness of the urban forest for any use or purpose whatsoever or for future outcomes of the inventoried trees. 1655 De Anza Blvd., Cupertino 1 June 2026 - Updated Aug 2026 216
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Summary
In May 2026, Davey Resource Group (DRG) was contacted by Joshua Vrotsos of Divided Homes to conduct a site verification of the existing tree inventory made by Ray Morneau dated August 2025 and updated March 2026. DRG assessed and developed a tree protection plan for specific trees identified by the client and the City of Cupertino as related to the alternative proposed development at 1655 De Anza Blvd. in Cupertino, CA.

On June 4, 2026, an International Society of Arboriculture (ISA) Certified Arborist (Sabrina Huey, #WE-14060A) from Davey Resource Group conducted the evaluation of five (5) new trees were assessed and sixty four (64) trees were re-assessed. On August 5, 2026 ten (10) remaining trees were re-assessed for a total of seventy nine (79) trees. Trees on and off the property that may be impacted by the project were assessed. Current plans and previous arborist reports reference the removal of trees located on 1601 S De Anza Blvd due to a separate project. The City of Cupertino requested tree protection measures for the trees to be retained, and the assessment of missing trees from the first assessment. The tree protection measures requested by the City are outlined in this report.

This report focuses on tree protection recommendations for tree preservation to help guide work around them and to reduce potential impacts on the trees. The trees identified for preservation should be monitored by a Certified Arborist at the end of construction and ongoing as needed.

Introduction
Assignment
The arborist visually assessed the specified trees on the site expected to be impacted, the environment beneath the driplines, and site conditions. Following data collection, specific tree preservation plans were determined to better ensure survivability during the planned project. This report establishes the condition of the trees and their canopies within the project area. The arborist visually assessed each tree on the site, and the required tree attributes were collected. Following data collection, specific tree preservation plan elements were calculated that identified each tree's critical and structural root zones (CRZ and SRZ) to better ensure survivability during the planned development. The trees were also photo documented so that any change in condition can be evaluated if needed.

Limits of the Assignment
Many factors can limit specific and accurate data when performing evaluations of trees, their conditions, and potential for failure or response to site disturbances. No soil or tissue testing was performed. All observations were made from the ground on June 4, 2026 and August 5, 2026. The determinations and recommendations presented here are based on current data and conditions that existed at the time of the evaluation and cannot be a predictor of the ultimate outcome for the evaluated trees in the future. No physical inspection of the upper canopy, sounding, resistance drilling, soil excavation to expose roots, or other technologies were used in the evaluation of the trees. Only trees specified by the client were observed. Plans dated 8-4-2026, titled T-1.0 were used as reference for arborist recommendations.

Observations
Methods
Data was collected by an International Society of Arboriculture (ISA) Certified Arborist (WE-14060A) on June 4, 2026 and on August 5, 2026. The results were used to determine the Tree Protection Zone (TPZ) and any other tree protection measures required during construction. The location and dripline of all trees four inches or greater in diameter at standard height (DSH, 4.5 ft. above grade) were documented. 1655 De Anza Blvd., Cupertino 2 June 2026 - Updated Aug 2026 217
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A visual inspection was used to develop the findings, conclusions, and recommendations found in this report. Data collection included measuring the diameter of significant trees at approximately 54 inches above grade (DBH), height estimation (+/- 5ft), average dripline distance, a visual assessment of tree condition, structure, and health, and a photographic record. A rating percentage (0-100%) was assigned for each tree’s health, structure, and form, and the lowest percentage was used as the overall tree condition. Using the lowest of the above factors together with the arborist’s best judgment, the general condition of each tree was recorded in one of the following categories, adapted from the rating system established by the International Society of Arboriculture and the 10th Edition of the Council of Tree & Landscape Appraisers (CTLA) Guide for Plant Appraisal 1 Condition: Condition ratings were based on but not limited to (1) the condition and environment of the tree’s root crown; (2) the condition of the trunk, including decay, injury, callusing, or presence of fungus sporophore; (3) the condition of the limbs, including the strength of crotches, amount of deadwood, hollow areas, and whether they bore excessive weight; (4) the condition and growth rate history of the twigs, including pest damage and diseases; (5) the leaf appearance, including abnormal size and density as well as pest and disease damage.

Using an average of the above factors together with the arborist’s best judgment, the general condition of each tree was recorded in one of the following categories, adapted from the rating system established by the International Society of Arboriculture and the 10th Edition of the Council of Tree & Landscape Appraisers (CTLA) Guide for Plant Appraisal1 :
● Excellent: High vigor and near-perfect health with little or no twig dieback, discoloration, or defoliation. It is nearly ideal and free of structural defects. It is a nearly ideal form for the species and is generally symmetrical. ● Good: Vigor is typical for the species and has no significant damage due to disease or pests. Twig dieback, discoloration, or defoliation is minor. Well-developed structure with minor defects that can be corrected easily. Minor asymmetries/deviations from species norm. Function and aesthetics are not compromised. ● Fair: Reduced vigor. Damage due to insects or diseases may be significant and associated with defoliation, but is not likely to be fatal. Twig dieback, defoliation, discoloration, and/or dead branches may comprise up to 50% of the canopy, a single structural defect of a significant nature or multiple moderate defects; structural defects are impractical to correct or require multiple treatments over several years, or major asymmetries/deviations from species norm. Function and aesthetics are compromised. ● Poor: Unhealthy and declining in appearance. Poor vigor, low foliage density, and poor foliage color are present. Potentially fatal pest infestation. Extensive twig or branch dieback. A single serious structural defect or multiple significant defects. Observed structural problems cannot be corrected. The tree is often a largely asymmetrical or abnormal form. The form detracts from the aesthetics or intended use to a significant degree.
● Very Poor: Poor vigor and appears to be dying. Little live foliage. Single or multiple severe structural defects. It is visually unappealing and offers little to no functionality in the landscape. ● Dead
Analysis & Recommendations
The City of Cupertino requested alternative plans to retain the trees along 1601 S De Anza Blvd., Cupertino. The City of Cupertino also requested some additional information on some trees that were missing on the previous arborist report.

While the majority of the trees do not fall under the specimen tree species list, the client will want to follow up with the City of Cupertino to determine if the trees were part of the required trees requirements. Unless otherwise noted below, all retained trees shall be protected in accordance with the General Tree Protection Measures provided in the following section. The City of Cupertino defines the Tree Protection Zone (TPZ) as the dripline of the tree, and must follow the requirements, unless approved otherwise.
1 Council of Tree and Landscape Appraisers. (2019). Guide for Plant Appraisal, 10th Edition, Second Printing. Atlanta, GA: International Society of Arboriculture.
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Trees #303-311 and 241 are all trees in the footprint of the proposed buildings, landscape, road and driveway. Removal of the trees is required under these plans. The client should follow up with the City of Cupertino to see if trees #303-311 are part of a required tree development. If the trees are part of a required tree program a permit is required for the removal of the trees. Tree #241 is a city owned tree and a permit is required for the removal of the tree.

Should the neighboring property owners retain trees #242-249, and 1 all on the neighboring property of 1601 S De Anza Blvd. The new proposed work is about 10 ft away from the retaining wall. There is a storm drain and walkway within 5 ft of the property line, but is further away than the proposed retaining wall. The drain is about 15-20 ft away from the closest tree. The storm drain work will occur outside of the structural root zone. Due to the size of the trees the impacts of the combined work is expected to be moderate. The proposed work of the retaining wall will encroach within 5-6 ft of the structural root zone of trees #242 and 244. This will affect about 10-15% of the structural root zone.

The trees are likely to survive the proposed work, following the following arborist recommendations. There is an existing wall that separates the property from the trees. Should the trees be retained then tree protection fencing should be installed along the existing wall along the edge of the canopy. The fencing should temporarily be removed when the existing hardscape is removed. Once the fencing is back in place, any excavation or grading that occurs within the TPZ should be done under arborist supervision. Any roots 2-inches or greater in diameter should only be removed with the approval of the onsite arborist. The trees have been continuously pruned for the existing wall clearance, and is not likely to need any additional canopy clearances for the proposed work. The client should take extra care to protect this tree and make any additional changes needed to retain the tree due to the size of the trees and the trees belonging to a neighboring property.

Should the neighboring property owners retain trees. Trees #250-251 are along the proposed driveway in the neighboring property. The trees are expected to have high impacts from the proposed work, and the client may want to consider possible removal of the trees. A permit and approval from the property owners is required for the removal of the trees. If the client were to update the plans to reduce impacts to these two trees, the fencing recommendations would be to have the fencing installed along the existing wall along the edge of the canopy. The fencing should temporarily be removed when the existing hardscape is removed. Once the fencing is back in place, any excavation or grading that occurs within the TPZ should be done under arborist supervision. Any roots 2-inches or greater in diameter should only be removed with the approval of the onsite arborist. The plans do not indicate any buildings being built near by these trees, but the trees could use a trim to raise the canopy for vehicle clearances. Tree #251 is completely clear and will not require much of a canopy clearance. Tree #250 has a relatively low canopy, but currently meets vehicle clearances. It is likely that the tree would require some additional clearances and would prune about 30% of the canopy which is greater than the industry standard and in the City of Cupertino considered excessive pruning. This tree is in fair condition as well as being on the neighboring property. If the property owners elect to retain the trees, pruning should initially be limited to the minimum necessary for clearance and should be monitored by an on-site arborist. After a twelve-month period, additional clearance pruning may be considered if Tree #250 remains in fair or better condition. The client should take extra care to protect this tree and make any additional changes needed to retain the tree due to the size of the trees and the trees belonging to a neighboring property.

Trees #313-314, and 2 are all neighboring trees that are located in planting strips. The tree protection fencing should be installed along the edge of the planting strip. The impacts are expected to be low to moderate. Although work may occur within the SRZ of the trees to be retained, it is estimated to occur outside of the planting strip. The trees are likely to survive the proposed work, following the following arborist recommendations. If the planter is replaced, then an excavation or grading that occurs should be done under arborist supervision. The proposed sound wall should be installed with a pier and beam to reduce root pruning impacts. During the installation of the footing, the project arborist should monitor the work. The impacts of the footing and the replaced planting strip should be low due to the size of the trees and the previous locations that the trees are planted in. Any excavation or grading that occurs within the TPZ should be done under arborist supervision. Any roots 2-inches or greater in diameter should only be removed 1655 De Anza Blvd., Cupertino 4 June 2026 - Updated Aug 2026 219
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with the approval of the onsite arborist. The client should take extra care to protect this tree and make any additional changes needed to retain the tree due to the tree belonging to a neighboring property.

Tree #312 is a large redwood tree. The fencing should be installed along the dripline of the tree. Impacts are expected to be moderate due to the amount of work occurring with the SRZ of the tree. The tree is likely to survive the proposed work, following the following arborist recommendations. The fencing should temporarily be removed when the existing hardscape is removed with onsite arborist supervision. Once the work is completed, the fencing should be installed back along the dripline of the tree. Once the fencing is back in place, any excavation or grading that occurs within the TPZ should be done under arborist supervision. Any roots 2-inches or greater in diameter should only be removed with the approval of the onsite arborist. The proposed sound wall should be installed with a pier and beam to reduce root pruning impacts. During the installation of the footing, the project arborist should monitor the work, the project should allow the arborist to approve or deny the pruning of large roots in order to retain this tree, this will ensure that less than 25% of the roots are impacted by the proposed project.

Trees 301-302 are trees that are recommended for removal due to conflicts with the sound wall. The client should follow up with the City of Cupertino to see if the trees are part of a required tree development. If the tree is part of a required tree program a permit is required for the removal of the trees.

Trees #297-300 all line the property and are all to be retained. While work is occurring within the CRZ of the trees to be retained, the impacts due to the pier and beam work are expected to be low to moderate. The trees are likely to survive the proposed work, following the following arborist recommendations. The tree protection fencing will be installed outside of the dripline of the trees. The impacts are expected to be low to moderate since work may occur within the SRZ of the trees to be retained. The fencing should temporarily be removed when the existing hardscape is removed with onsite arborist supervision. Once the work is completed, the fencing should be installed back along the dripline of the tree. The proposed sound wall should be installed with a pier and beam to reduce root pruning impacts.

During the installation of the footing, the project arborist should monitor the work. Any excavation or grading that occurs within the TPZ should be done under arborist supervision. Any roots 2-inches or greater in diameter should only be removed with the approval of the onsite arborist.

Trees #252-261, and 2 are all neighboring trees that are in an elevated wall along the edge of the property. The impacts are expected to be low to moderate since work may occur within the SRZ of the trees to be retained. The trees are likely to survive the proposed work, following the following arborist recommendations. The fencing should temporarily be removed when the existing hardscape is removed with onsite arborist supervision. Once the work is completed, the fencing should be installed back along the dripline of the tree. Once the fencing is back in place, any excavation or grading that occurs within the TPZ should be done under arborist supervision. Any roots 2-inches or greater in diameter should only be removed with the approval of the onsite arborist.

Trees #262-292 are all trees located along the edge of the parking lot. The trees are all expected to have low to moderate impacts due to work occurring with the SRZ of the trees to be retained. The trees are likely to survive the proposed work, following the following arborist recommendations. The fencing should temporarily be removed when the existing hardscape is removed with onsite arborist supervision. Once the work is completed, the fencing should be installed back along the dripline of the tree. The proposed sound wall should be installed with a pier and beam to reduce root pruning impacts. During the installation of the footing, the project arborist should monitor the work. Any excavation or grading that occurs within the TPZ should be done under arborist supervision. Any roots 2-inches or greater in diameter should only be removed with the approval of the onsite arborist.

Tree #3 is a neighboring tree that is expected to have none to low impacts. The tree is likely to survive the proposed work, following the following arborist recommendations. The tree will be protected due to the fencing around the surrounding trees, no additional tree protection fencing needs to be installed. 1655 De Anza Blvd., Cupertino 5 June 2026 - Updated Aug 2026 220
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Tree #4 is a neighboring tree that is 8 ft away from the property line. The proposed work is about 6 ft away from the tree. The work impacts are expected to be moderate since work is proposed within the SRZ of the tree to be retained.

The tree is likely to survive the proposed work, following the following arborist recommendations. The tree protection fencing should be installed along the edge of the property line. Any excavation or grading that occurs within the TPZ should be done under arborist supervision. Any roots 2-inches or greater in diameter should only be removed with the approval of the onsite arborist. The client should take extra care to protect this tree and make any additional changes needed to retain the tree due to the size of the tree and the tree belonging to a neighboring property.

Trees 293-296 are to be removed due to the condition of the trees and the trees being in the footprint of the proposed work. The client will want to follow up with the City of Cupertino to see if the trees are part of a required tree development. If the tree is part of a required tree program a permit is required for the removal of the trees.

In addition to site specific recommendations above, the following sections identify general best practice recommendations for tree preservation.
● Install Tree Protection Zone (TPZ) fencing at the calculated TPZ listed in Table 2 below and the report written by Ray Morneau, at the pavement edge, or designated Limit of Disturbance (LOD) of the trees to be retained and remain in place for the entirety of the project. Access into the TPZ should not be allowed unless determined to be necessary and only under the supervision of a certified arborist. The tree protection area may be reduced by following tree protection measures. The fence shall be a minimum of five feet in height and shall be set securely in place. The fence shall be of a sturdy but open material (i.e., chain link), to allow visibility to the trunk for inspections and safety. The fence shall be in place until construction has been completed. There shall be no storage of any kind within the protective fencing. TPZs shall be constructed in such a fashion as to not be easily moved or dismantled. ● As the proposed additions are within the TPZ’s, the fencing may be moved in as needed but should be returned to the TPZ edge as soon as possible. The tree protection area may be reduced by following tree protection measures.
● “Tree Protection Area - Keep Out” or similar signs shall accompany the TPZ fencing every 15 feet and include contact information to report violations.
● Access into the TPZ should not be allowed unless determined to be necessary and only under the supervision of a certified arborist.
● Any excavation within the TPZ’s must be hand-dug, or done with pneumatic air spade or hydro-vac, and should be monitored by a Certified Arborist. All impacts shall be documented. ● Any roots >2-inch diameter may only be pruned with approval from the on-site arborist. ● All heavy equipment must remain outside of the TPZ. No stockpiling of materials, vehicular traffic, or storage of equipment or machinery shall be allowed inside the TPZ. ● All pruning shall be done by a Certified Arborist or Certified Tree Worker in accordance with the Best Management Practices for Pruning (International Society of Arboriculture, 2002) and adhere to the most recent editions of the American National Standard for Tree Care Operations (Z133.1 and Pruning (A300). ● TPZs shall remain in place for the entirety of the project and only removed, temporarily or otherwise, by an ISA Certified Arborist after submission and approval of intent. ● Trees should be irrigated regularly.
● If the soil within the TPZ is compacted, then aerate the soil using an air spade to alleviate compaction and promote the flow of oxygen and water to the roots.
● Add a 3-inch layer of mulch to the portion of the root zone protected by the TPZ. Be sure not to cover/bury the tree root collar. Mulch aids the soil in water retention and also helps insulate the soil from hot and cold weather extremes.
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● Where possible, add a 4-6-inch layer of wood chips over any parts of a root zone not protected by the TPZ.

This aids in reducing the impact of soil compaction from foot traffic and/or heavy equipment during the upcoming construction activities.

Appendix A – Location Map
Map 1. Aerial view of site and tree locations.
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Map 2. Aerial view of the updated site and tree locations. 1655 De Anza Blvd., Cupertino 8 June 2026 - Updated Aug 2026 223
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Map 3. Close up of trees 242-248 and 494
Map 4. Close up of trees 246-261 and 2.
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Map 5. Close up of trees #262-287, 3, and 297-302.

Map 6. Close up of trees #265-296, 4, and 297-300.
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Map 7. Close up of trees #299-302, 312-314, and 1.

Map 8. Close up of additional trees #303-311, and 241.
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Appendix B – Tree Data Table
Table 1. Tree Inventory & Condition Assessment June 2026 - Additional treesAugust 2026 80-100% - Good; 51-79% - Fair; 30-50% - Poor; 1-29% - Critical; 0 - Dead Tree
Tag
Tree # DBH Tree Species
Conditi
on
Health
(%)
Structur
e (%)
Form
(%)
Canopy
Radius
(ft)
Heigh
t (ft) Notes
498 242 30
Redwood
Sequoia
sempervirens
Poor 60 40 40 16 25
Neighbor's tree. Along the edge
of the property line and
previously topped for
powerlines.
497 243 25
Coast live oak
Quercus agrifolia Poor 60 40 40 20 25
Neighbor's tree. Along the edge
of the property line and
previously topped for
powerlines. Poor form due to
co-dom removal.
496 244 32
Coast live oak
Quercus agrifolia Fair 60 60 55 25 25
Neighbor's tree. Along the edge
of the property line and
previously topped for
powerlines.
495 245 18
Eucalyptus
Eucalyptus
camaldulensis
Fair 60 60 55 10 30
Neighbor's tree. Along the edge
of the property line and
previously topped for
powerlines. The tree is about 4
ft away from the fence, and has
a lean.
494 494 14
Eucalyptus
Eucalyptus
camaldulensis
Poor 55 60 40 12 25
Neighbor's tree. Along the edge
of the property line and
previously topped for
powerlines. The tree is about 3
ft away from the fence.
493 246 15
London plane
Platanus acerfolia Fair 60 60 55 26 25
Neighbor's tree. Along the edge
of the property line and
previously topped for
powerlines. The tree is about 3
ft away from the fence.
452 247 15
London plane
Platanus acerfolia Fair 60 60 55 24 30
Neighbor's tree. Along the edge
of the property line and
previously topped for
powerlines. The tree is about 3
ft away from the fence.
491 248 29
Eucalyptus
Eucalyptus
camaldulensis
Fair 60 60 60 20 45
Neighbor's tree. The tree is
about 2 ft away from the fence.
490 249 22
Eucalyptus
Eucalyptus
camaldulensis
Fair 55 55 55 18 45
Neighbor's tree. The tree is
about 2 ft away from the fence.
489 250 32 Coast live oak Fair 60 60 60 28 35 Neighbor’s tree. The tree is 1655 De Anza Blvd., Cupertino 12 June 2026 - Updated Aug 2026 227
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Quercus agrifolia growing between the fence line.

Possible decay in the main
branch.
488 251 16
Coast live oak
Quercus agrifolia Fair 60 60 60 16 30
Neighbor’s tree. The tree is
about 6 ft away from the fence,
and has a lean for
over-crowding.
314 314 10
Elm
Ulmus spp. Fair 60 60 60 10 20
Along the edge of property lines,
in a planting strip.
313 313 7.5
Elm
Ulmus spp. Fair 55 60 60 6 15
Along the edge of property lines,
in a planting strip.Decay in
branches.
1 9.5
Elm
Ulmus spp. Fair 55 60 60 6 20
Along the edge of property lines,
in a planting strip. Poor previous
pruning.
312 312 33
Redwood
Sequoia
sempervirens
Poor 50 60 60 16 60
In the planter in the parking lot.

Showing signs of stress.
302 302
5,4,4,
3,3,3
Photinia
Photinia serrulata Fair 60 60 60 12 15 In the parking lot planting strip. 301 301 17
Italian cypress
Cupressus
sempervirens
Good 80 80 80 6 45 In the parking lot planting strip.
300 300 25
Italian cypress
Cupressus
sempervirens
Good 80 80 80 6 45 In the parking lot planting strip.
299 299 24
Italian cypress
Cupressus
sempervirens
Good 80 80 80 6 45 In the parking lot planting strip.
298 298 19
Italian cypress
Cupressus
sempervirens
Good 80 80 80 6 45 In the parking lot planting strip.
297 297 26
Italian cypress
Cupressus
sempervirens
Good 80 80 80 6 45 In the parking lot planting strip.
252 252 11
Australian brush
Syzygium
paniculatum
Poor 50 50 50 4 35
Neighbor’s tree in an elevated
retaining wall.
253 253 8
Australian brush
Syzygium
paniculatum
Poor 50 50 50 4 35
Neighbor’s tree in an elevated
retaining wall.
254 254 8
Australian brush
Syzygium
paniculatum
Poor 50 50 50 4 35
Neighbor’s tree in an elevated
retaining wall.
255 255
2,2,2,
4,4
Australian brush
Syzygium
paniculatum
Poor 50 50 50 4 35
Neighbor’s tree in an elevated
retaining wall.
256 256 7
Australian brush
Syzygium
paniculatum
Poor 50 50 50 4 35
Neighbor’s tree in an elevated
retaining wall.
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257 257 30
Redwood
Sequoia
sempervirens
Fair 55 60 60 16 50
Neighbor’s tree in an elevated
retaining wall.
258 258 16
Redwood
Sequoia
sempervirens
Fair 55 60 60 16 50
Neighbor’s tree in an elevated
retaining wall.
2 10
Redwood
Sequoia
sempervirens
Poor 40 40 40 6 40
Neighbor’s tree in an elevated
retaining wall.
259 259 30
Redwood
Sequoia
sempervirens
Fair 60 60 60 16 60
Neighbor’s tree in an elevated
retaining wall.
260 260 24
Redwood
Sequoia
sempervirens
Fair 55 60 60 16 50
Neighbor’s tree in an elevated
retaining wall.
261 261 15
Redwood
Sequoia
sempervirens
Fair 55 60 60 16 50
Neighbor’s tree in an elevated
retaining wall.
262 262 15
Juniper
Juniperus chinensis Poor 40 60 60 12 20
Along the edge of the existing
parking lot.
263 263 13
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 60
Along the edge of the existing
parking lot.
264 264 13
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 60
Along the edge of the existing
parking lot.
3 36
Redwood
Sequoia
sempervirens
Fair 60 60 60 16 60
Neighbor’s tree in an elevated
retaining wall.
265 265 11
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
266 266 10.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
267 267 11
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
268 268 10
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
269 269 10.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
270 270 10
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
271 271 10.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
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272 272 13
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
273 273 14
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
274 274 13
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
275 275 12
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
276 276 8
Juniper
Juniperus chinensis Fair 60 60 60 4 10
Along the edge of the existing
parking lot.
277 277 12
Italian cypress
Cupressus
sempervirens
Poor 40 60 60 4 50
Along the edge of the existing
parking lot.
278 278 10.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
279 279 11.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
280 280 12
Juniper
Juniperus chinensis Poor 40 60 60 4 50
Along the edge of the existing
parking lot.
281 281 13.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
282 282 11
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
283 283 10.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
284 284 14
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
285 285 16
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
286 286 12
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
287 287 14
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
288 288 14
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
289 289 14
Italian cypress
Cupressus
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
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sempervirens
290 290 14
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
291 291 14.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
292 292 10.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
293 293 8
Italian cypress
Cupressus
sempervirens
Critical 15 50 50 4 50
Along the edge of the existing
parking lot.
294 294 11
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
295 295 15
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
296 296 18.5
Italian cypress
Cupressus
sempervirens
Good 80 80 80 4 50
Along the edge of the existing
parking lot.
4 27
Redwood
Sequoia
sempervirens
Fair 75 75 75 18 60
Neighbor’s tree at the front of
the property, about 8 ft away
from the property line.
303 303 13,20
Juniper
Juniperus chinensis
Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
304 304 15
Juniper
Juniperus chinensis Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
305 305 13
Juniper
Juniperus chinensis Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
306 306 17
Juniper
Juniperus chinensis Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
307 307 14
Juniper
Juniperus chinensis Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
308 308 18
Juniper
Juniperus chinensis Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
309 309 21
Juniper
Juniperus chinensis Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
310 310 15,12
Juniper
Juniperus chinensis Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
311 311 24
Juniper
Juniperus chinensis Fair 60 60 60 16 30
In planter in the footprint of the
proposed work.
241 241 13
London plane
Platanus acerifolia Fair 80 60 60
13 40
In planter in the footprint of the
proposed work and overgrown.

City owned tree.
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Table 2. Tree Root Zones and Tree Protection Zone
Tree Tag Tree # DBH Common
Name
Structural Root
Zone
Critical Root
Zone
Tree Protection
Zone
498 242 30
Redwood
Sequoia
sempervirens
15 30 16
497 243 25
Coast live oak
Quercus
agrifolia
13 25 20
496 244 32
Coast live oak
Quercus
agrifolia
16 32 25
495 245 18
Eucalyptus
Eucalyptus
camaldulensis
9 18 10
494 494 14
Eucalyptus
Eucalyptus
camaldulensis
7 14 12
493 246 15
London plane
Platanus
acerfolia
8 15 26
452 247 15
London plane
Platanus
acerfolia
8 15 24
491 248 29
Eucalyptus
Eucalyptus
camaldulensis
15 29 20
490 249 22
Eucalyptus
Eucalyptus
camaldulensis
11 22 18
489 250 32
Coast live oak
Quercus
agrifolia
16 32 28
488 251 16
Coast live oak
Quercus
agrifolia
8 16 16
314 314 10
Elm
Ulmus spp. 5 10 10
313 313 7.5
Elm
Ulmus spp. 4 8 6
1 9.5
Elm
Ulmus spp. 5 10 6
312 312 33
Redwood
Sequoia
sempervirens
17 33 16
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Tree Tag Tree # DBH Common
Name
Structural Root
Zone
Critical Root
Zone
Tree Protection
Zone
302 302
5,4,4,3,3,
3 Photinia
Photinia
serrulata
7 14 12
301 301 17
Italian cypress
Cupressus
sempervirens
9 17 6
300 300 25
Italian cypress
Cupressus
sempervirens
13 25 6
299 299 24
Italian cypress
Cupressus
sempervirens
12 24 6
298 298 19
Italian cypress
Cupressus
sempervirens
10 19 6
297 297 26
Italian cypress
Cupressus
sempervirens
13 26 6
252 252 11
Australian brush
Syzygium
paniculatum
6 11 4
253 253 8
Australian brush
Syzygium
paniculatum
4 8 4
254 254 8
Australian brush
Syzygium
paniculatum
4 8 4
255 255 2,2,2,4,4
Australian brush
Syzygium
paniculatum
4 8 4
256 256 7
Australian brush
Syzygium
paniculatum
4 7 4
257 257 30
Redwood
Sequoia
sempervirens
15 30 16
258 258 16
Redwood
Sequoia
sempervirens
8 16 16
2 10
Redwood
Sequoia
sempervirens
5 10 6
259 259 30
Redwood
Sequoia
sempervirens
15 30 16
260 260 24
Redwood
Sequoia
sempervirens
12 24 16
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Tree Tag Tree # DBH Common
Name
Structural Root
Zone
Critical Root
Zone
Tree Protection
Zone
261 261 15
Redwood
Sequoia
sempervirens
8 15 16
262 262 15
Juniper
Juniperus
chinensis
8 15 12
263 263 13
Italian cypress
Cupressus
sempervirens
7 13 4
264 264 13
Italian cypress
Cupressus
sempervirens
7 13 4
3 36
Redwood
Sequoia
sempervirens
18 36 16
265 265 11
Italian cypress
Cupressus
sempervirens
6 11 4
266 266 10.5
Italian cypress
Cupressus
sempervirens
6 11 4
267 267 11
Italian cypress
Cupressus
sempervirens
6 11 4
268 268 10
Italian cypress
Cupressus
sempervirens
5 10 4
269 269 10.5
Italian cypress
Cupressus
sempervirens
6 11 4
270 270 10
Italian cypress
Cupressus
sempervirens
5 10 4
271 271 10.5
Italian cypress
Cupressus
sempervirens
6 11 4
272 272 13
Italian cypress
Cupressus
sempervirens
7 13 4
273 273 14
Italian cypress
Cupressus
sempervirens
7 14 4
274 274 13
Italian cypress
Cupressus
sempervirens
7 13 4
275 275 12
Italian cypress
Cupressus
sempervirens
6 12 4
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Tree Tag Tree # DBH Common
Name
Structural Root
Zone
Critical Root
Zone
Tree Protection
Zone
276 276 8
Juniper
Juniperus
chinensis
4 8 4
277 277 12
Italian cypress
Cupressus
sempervirens
6 12 4
278 278 10.5
Italian cypress
Cupressus
sempervirens
6 11 4
279 279 11.5
Italian cypress
Cupressus
sempervirens
6 12 4
280 280 12
Juniper
Juniperus
chinensis
6 12 4
281 281 13.5
Italian cypress
Cupressus
sempervirens
7 14 4
282 282 11
Italian cypress
Cupressus
sempervirens
6 11 4
283 283 10.5
Italian cypress
Cupressus
sempervirens
6 11 4
284 284 14
Italian cypress
Cupressus
sempervirens
7 14 4
285 285 16
Italian cypress
Cupressus
sempervirens
8 18 4
286 286 12
Italian cypress
Cupressus
sempervirens
6 12 4
287 287 14
Italian cypress
Cupressus
sempervirens
7 14 4
288 288 14
Italian cypress
Cupressus
sempervirens
7 14 4
289 289 14
Italian cypress
Cupressus
sempervirens
7 14 4
290 290 14
Italian cypress
Cupressus
sempervirens
7 14 4
291 291 14.5
Italian cypress
Cupressus
sempervirens
8 15 4
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Tree Tag Tree # DBH Common
Name
Structural Root
Zone
Critical Root
Zone
Tree Protection
Zone
292 292 10.5
Italian cypress
Cupressus
sempervirens
6 11 4
293 293 8
Italian cypress
Cupressus
sempervirens
4 8 4
294 294 11
Italian cypress
Cupressus
sempervirens
6 11 4
295 295 15
Italian cypress
Cupressus
sempervirens
8 15 4
296 296 18.5
Italian cypress
Cupressus
sempervirens
10 19 4
4 27
Redwood
Sequoia
sempervirens
14 27 18
303 303 13,20
Juniper
Juniperus
chinensis
14 27 16
304 304 15
Juniper
Juniperus
chinensis
8 15 16
305 305 13
Juniper
Juniperus
chinensis
7 13 16
306 306 17
Juniper
Juniperus
chinensis
9 17 16
307 307 14
Juniper
Juniperus
chinensis
7 14 16
308 308 18
Juniper
Juniperus
chinensis
9 18 16
309 309 21
Juniper
Juniperus
chinensis
11 21 16
310 310 15,12
Juniper
Juniperus
chinensis
11 21 16
311 311 24
Juniper
Juniperus
chinensis
12 24 16
241 241 13
London plane
Platanus
acerifolia
7 13 13
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Table 3. Photographic Table of Trees Proposed for Removal Tree # Common Name Photo
241 London plane
303 Juniper
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Tree # Common Name Photo
304 Juniper
302 Photinia
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Tree # Common Name Photo
301 Italian cypress
305 Juniper
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Tree # Common Name Photo
306 Juniper
307 Juniper
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Tree # Common Name Photo
293 Italian cypress
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Tree # Common Name Photo
294 Italian cypress
295 Italian cypress
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Tree # Common Name Photo
296 Italian cypress
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Tree # Common Name Photo
308 Juniper
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Tree # Common Name Photo
309 Juniper
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Tree # Common Name Photo
310 Juniper
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Tree # Common Name Photo
311 Juniper
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Appendix C – Photos

1. View of tree 494.
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2. View of tree #1.
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3. View of the trunk of tree #2.
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4. View of tree #3, between trees #264 and 265.
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5. View of tree #4, behind trees #293-296.
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6. View of trees #305-311.
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7. Recent view of tree #250 and 251.
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Nicole Harrison • ISA Certified Arborist #WE-6500AM • (530) 305-0165 Focal Point Arboriculture Consulting 1 (530) 305-0165

MEMORANDUM
DESCRIPTION: Arborist Report Peer Review, Second Round Comments PROJECT NAME: 1655 De Anza, Cupertino
DATE: Final August 17, 2026
Summary of outstanding items from the 2nd Review:

1. Tree 250 and 251. The revised arborist report appears to address the comments stating ‘It is likely that the tree would require some additional clearances and would prune about 30% of the canopy which is greater than the industry standard and in the City of Cupertino considered excessive pruning.

Comment addressed.

2. Trees 242 and 244, also along the north property line. Storm drain and concrete walkway within 5’ of property line. Comment addressed.

3. Trees 297-300 Soundwall impacts. Comment addressed.

4. Approved development trees proposed for removal require a photograph(s) of each tree, (14.18.110 A.2.a). a. Please provide a photographic table of the trees proposed for removal. Comment addressed.

5. Tree Replacement Table, sheet T1.0, to be updated for the final status of trees 250 and 251. Comment addressed.

Project Arborist:

Nicole Harrison
ISA Certified Arborist #WC-6500AM, TRAQ
ASCA Registered Consulting Arborist #719
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Density Bonus Waivers for 1655 S. De Anza Boulevard
The applicant has requested the following 11 waivers:

1. Maximum Floor Area (CMC 19.46.070(B))
Townhome Building Development Regulations set a maximum floor area ratio (FAR) of

8.5:1.0, or 85% of the proposed net lot size. The proposed FAR is 163% of the net lot area, nearly twice the allowable FAR of the TH zoning district. The applicant states that imposing the 85% FAR restriction on the site for which waivers have been requested would result in the loss of 17 units, nearly half of the 35 units proposed.

2. 30-Foot Height Limitation (General Plan Figure LU-2) The General Plan Community Form Diagram in General Plan Figure LU-2 requires that developments in the South De Anza Special Area be limited to a maximum height of 30 feet, while the South Sunnyvale-Saratoga Conceptual Plan limits building heights to 40 feet. CMC section 19.46.070 Townhome (TH) Development Standards has a maximum building height of 30 feet. Accordingly, the applicant has requested a waiver for all five buildings to increase the maximum building height allowed for the townhouse buildings, as follows:

Building No. Total Building Height
(to 4th Story Penthouse)
Bldg. 1 43’-9”
Bldg. 2 43’-9”
Bldg. 3 44’-9”
Bldg. 4 44’-9”
Bldg. 5 44’-9”
The applicant states that imposing building heights for which waivers have been requested would result in changing the height and design of the buildings, resulting in the removal of all third floors and private open space in the form of rooftop decks, which is not consistent with the project, as it is proposed.

3. Three Story Height Limitation (COA 18)(a) of S. Sunnyvale-Saratoga Conceptual Plan and CMC section 19.46.070
Both the South Sunnyvale-Saratoga Conceptual Plan and CMC section 19.46.070 Townhome (TH) Development Standards limit building heights to three stories. The applicant has requested a waiver for all five buildings to increase the maximum number of stories from three to four. The fourth floor of each building will consist of the rooftop deck and, for some units, small storage areas.

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waivers have been requested would result in changing the height and design of the buildings. This would result in the removal of all private open space in the form of rooftop decks, which is not consistent with the project, as it is proposed.

4. Front Setback (CMC 19.36.070(C)(1)) Project with Five of More Units The R-3 Zoning District regulations require that developments have a minimum front setback of 35 feet from the face of the street curb if the project site abuts an arterial street or major collector and 20 feet from the property line if the project site abuts any other street. Buildings 2 and 4 front S. De Anza Boulevard, which is a major collector street per Figure M-2 of the City’s Mobility Element. The following table indicates the required setback and the proposed setbacks for the two buildings for which waivers are requested:

Buildings Required Front Setback Proposed Front Setback 2 & 4 35’ from face of curb 27’-5” from face of curb
5* 20’ from property line* 7’-6” from property line*
* The plans apply a street-side setback along Prospect Road. Street side setbacks only apply to corner lots, which this property is not. As a result, the requested waiver has been re-assigned to be a front setback waiver along Prospect Road.

The applicant states that imposing the front setback requirements would result in the elimination of units, reduced floor areas of the remaining units, or a substantial change to the design of the buildings, which is not consistent with the project, as it is proposed.

5. Design Requirements (CMC 19.46.070(F)(1))
The Municipal Code requires that new developments select at least two design features from the three outlined below. The project complies with one requirement for a front architectural feature; however, it does not meet the requirements for either a stairway with a minimum of three steps or a pitched roof with a minimum slope of 3:12. a. Front Architectural Feature (e.g., stoop, front porch). b. Stairway with at least three stairs leading to the front entrance. c. Pitched roof with a slope of at least 3:12.

Absent of this waiver, incorporating the standards above would require a substantial change to the design of Buildings 2, 4 and 5, which is not consistent with the project, as it is proposed.

6. Site & Building Design (COA 17) of S. Sunnyvale-Saratoga Conceptual Zoning Plan COA 17 of the South Sunnyvale-Saratoga Conceptual Zoning Plan requires that developments provide a 20’ landscape buffer between parking lots and existing singlefamily development. The nearest uncovered parking stall on site is located 190 feet away from the westerly property line, the property line shared with a single-family neighborhood. However, the proposed drive aisle is located immediately adjacent to this 257
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property line.

Additionally, COA 17 requires that buildings be placed contiguous to the required landscape buffer outlined in COA 19 below to minimize privacy intrusion into adjoining rear yards of single-family homes. The project has been designed to address potential privacy concerns by retaining the existing mature landscape specimens along the westerly property line and by providing additional privacy planting. However, the project does not fully meet COA 19 Site & Design Standards for landscape buffer, as described below, and is therefore not consistent with this requirement.

The applicant states that imposing the landscape buffer would result in the elimination of units, reduced floor areas of units, or a substantial change to the design of the buildings and site circulation which is not consistent with the project, as it is proposed.

7. Landscape Requirements (COA 19(d)) of S. Sunnyvale-Saratoga Conceptual Zoning Plan
The South Sunnyvale-Saratoga Conceptual Zoning Plan requires that developments provide a 15-20’ landscape buffer between new buildings and existing single-family residential areas to minimize privacy intrusion into adjoining rear yards of single-family homes. The project has been designed to address potential privacy concerns by retaining the existing mature landscape along the westerly property line and by providing additional privacy planting. However, the project does not fully meet COA 19(d) Landscape Requirements for landscape buffer as outlined in the chart below:

Building Required
Landscape Buffer
Proposed
Landscape Buffer
Building Setback from
Westerly Property Line
1 15-20 Feet 5 Feet 46.5’
3 15-20 Feet 5 Feet 46.5’
5 15-20 Feet 9 Feet 36’
The applicant states that imposing the landscape buffer would result in the elimination of units, the reduced floor areas of units, or substantial changes to the design of the buildings and site circulation, which is not consistent with the project, as it is proposed.

8. Building [Step Back] Height (COA 18) of S. Sunnyvale-Saratoga Conceptual Zoning Plan
The South Sunnyvale-Saratoga Conceptual Zoning Plan requires a 50-foot setback for third floor portions of buildings. The following table indicates the required vs proposed setbacks for the three buildings for which waivers are requested:
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Building
Required Third
Floor Setback
(waiver)
Proposed Building
Setback from Westerly
Property Line
1 & 3 50 Feet 46.5’
5 50 Feet 34’
According to the applicant, absent this waiver, applying these setbacks to the project would result in the loss of nine units and/or a substantial change to the design of the buildings.

9. Landscape Requirements (COA 19 (a) and (c)) of S. Sunnyvale-Saratoga Conceptual Zoning Plan
The South Sunnyvale-Saratoga Conceptual Zoning Plan requires new development to provide landscaped setback areas adjacent to the public right-of-way. While the project has been designed to provide landscaped areas adjacent to the public rights-of-way, these do not meet the required depth outlined in COA 19 of the plan.

Building Required Landscape Setback
(measured from face of curb)
Proposed Landscape Setback
(measured from face of curb)
2 & 4 35-50 Feet (S. De Anza Blvd.) 27.4 Feet
5 25 Feet (Prospect Road) 20.6 Feet
The applicant has requested a waiver to allow for a reduced landscape setback area for Buildings 2, 4, and 5. Like the preceding setback waivers, the applicant states that adhering to this requirement would result in the elimination of units, reduced floor areas, or a substantial change to the design of the buildings, which is not consistent with the project as it is proposed.

10. Public Improvements (CAO 24(c)) S. Sunnyvale-Saratoga Conceptual Zoning Plan The applicant seeks a waiver from the 10- to 15-foot landscape parkway strip required on S. De Anza Boulevard. The following table indicates the required setbacks and the proposed setbacks for minimum parkway width for which waiver is request:

Required Landscape Parkway
(measured from face of curb)
Proposed Landscape Parkway
(measured from face of curb)
10-15 Feet 8 Feet
The application of this setback standard would result in the redesign of the project as currently proposed. Moreover, providing a wider parkway would require increasing the right-of-way dedication on site, resulting in the shifting of bioretention basins, the public sidewalk and safety vision triangle locations further west of the site. The shifting of the biorientation basins would conflict with the proposed building footprints and would 259
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result in reduced floor areas of units 14 and 28 and require substantial change to the design of Buildings 2 and 4. Furthermore, the shifting of the vision triangle would directly conflict with the proposed public art location and three-foot height limitation for structures within the safety vision triangle.

11. Building Planes Maintained Under a 1:1 Slope Line (General Plan, Figure LU-2) The General Plan requires that new developments maintain the building(s) below a 1:1 slope line drawn from the arterial/boulevard curb line. The applicant is requesting a waiver from this standard for buildings 2 and 4. The project, as designed, does not comply with the 1:1 slope line. The project will need a waiver from this. Imposing this requirement would result in the elimination of the roof deck and fourth-story penthouse access and cause a substantial re-design of the project. 260
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City of Cupertino
1655 SOUTH DE ANZA BOULEVARD

RESIDENTIAL DEVELOPMENT PROJECT
August 2026 | CEQA Exemption Memorandum
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August 2026 | CEQA Exemption Memorandum
1655 SOUTH DE ANZA BOULEVARD

RESIDENTIAL DEVELOPMENT PROJECT
for City of Cupertino
City of Cupertino
Contact: Danielle Condit, Associate Planner
10300 Torre Avenue
Cupertino, California 95014
408.777.3214
Prepared by:

PlaceWorks
Contact: Annika Kiemm, Associate
2040 Bancroft Way #400
Berkeley, California 94704
510.848.3815
www.placeworks.com
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AUGUST 2026 i

TABLE OF CONTENTS

1. Introduction ......................................................................................................1

1.1 Statutory Exemptions.............................................................................................. 1

2. Project Description............................................................................................3

2.1 Regional Location.................................................................................................... 3

2.2 Project Site .............................................................................................................. 3

2.3 Land Use and Zoning Designations......................................................................... 3

2.4 Proposed Project..................................................................................................... 5

3. Findings Concerning CEQA Exemption................................................................6

3.1 Public Resources Code Section 21080.66 ............................................................... 6

3.2 Analysis in Support of Findings............................................................................... 6

3.3 Conclusion............................................................................................................. 22

Tables
Table 1Infill Requirements and Project Consistency ...................................................................... 7 Table 2Environmental Criteria and Project Consistency .............................................................. 11 Table 3Tribal Notification, Outreach, and Consultation Initiation................................................ 16

SOURCES
All documents cited in this report and used in its preparation are hereby incorporated by reference into this document. Copies of documents referenced herein are available for review at the City of Cupertino Community Development Department at 10300 Torre Avenue, Cupertino, California 95014.
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1. INTRODUCTION
This section describes the standards for determining a significant effect on the environment from construction and operation of the proposed 1655 South De Anza Boulevard Residential Development (proposed project) pursuant to the requirements of the California Environmental Quality Act (CEQA). The City of Cupertino (City) is the lead agency for the proposed project.

1.1 STATUTORY EXEMPTIONS
Once a lead agency determined that an activity is a project subject to CEQA, the lead agency must determine whether the project is exempt from CEQA. Pursuant to State CEQA Guidelines Section 15061(b), a project is exempt from CEQA if at least one of five criteria is met:

1. The project is exempt by statute (see, e.g., Article 18, commencing with Section 15260).

2. The project is exempt pursuant to a categorical exemption (see Article 19, commencing with Section 15300) and the application of that categorical exemption is not barred by one of the exceptions set forth in Section 15300.2.

3. The activity is covered by the common-sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

4. The project will be rejected or disapproved by a public agency (see Section 15270(b)).

5. The project is exempt pursuant to the provisions of Article 12.5 of Chapter 3.

The proposed project would be exempt as a “statutory” exemption under State CEQA Guidelines Section 15061(b)(1) because the proposed project would meet the requirements of the Public Resources Code (PRC) Section 21080.66(a), as further discussed in Section 3, Findings Concerning CEQA Exemption.

This document has been prepared to demonstrate CEQA compliance as it pertains to the proposed project. This document also provides information to decision makers regarding a finding that the proposed project is exempt under CEQA. 265
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2. PROJECT DESCRIPTION

2.1 REGIONAL LOCATION
The project site is in the city of Cupertino, approximately 38 miles southeast of the city and county of San Francisco. Cupertino is on the western edge of Santa Clara County and north of the city of Saratoga, east of unincorporated Santa Clara County, south of the city of Sunnyvale, and west of the city of San José. Regional access to the project site is provided by State Route 85 (SR-85) via South De Anza Boulevard from the north and Prospect Road from the east. The City is also supported by Santa Clara Valley Transportation Authority (VTA) bus service and Caltrain via the Sunnyvale, Lawrence, and Santa Clara Caltrain stations.

2.2 PROJECT SITE
The 1.67-acre project site is at 1655 South De Anza Boulevard, on the northwest corner of South De Anza Boulevard and Prospect Road, in an urbanized area. The project site is 260 feet north of Cupertino’s southern border with the City of Saratoga, just south of Prospect Road where South De Anza Boulevard turns into Saratoga Sunnyvale Road; and 160 feet west of Cupertino’s eastern border with the City of San José, just east of South De Anza Boulevard.

The project site is currently developed with a commercial building with a surface parking lot with ornamental landscaping. On-site commercial uses include a commercial building housing four commercial units, including two occupied units and two vacant units. The units are occupied by Four Seasons Seafood, a commercial market use, and KML Pharmacy, a commercial pharmacy use. These tenants have been notified of the development application and are on month-to-month leases. The site is bound by commercial development to the north, South De Anza Boulevard and commercial development to the east, commercial development and Prospect Road to the south, and single-family residential development to the west. The project site is within a quarter-mile walking distance of VTA Bus Route 51.

2.3 LAND USE AND ZONING DESIGNATIONS
The project site is assigned Assessor’s Parcel Numbers (APNs) 366-10-061 and 366-10-126. The developer has submitted a preliminary application pursuant to the Housing Crisis Act of 2019, commonly referred to by its legislative number, Senate Bill (SB) 330. This act vests the standards that are in place at the time a preliminary application for a housing project is submitted and 267
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prevents jurisdictions from imposing or enforcing new design standards on housing projects that are not objective. As such, the proposed project is subject to the regulations in place at the time the project’s preliminary application was submitted on September 12, 2025, and the formal application on September 29, 2025, which are:
 General Plan Land Use: Commercial/Office/Residential within the South De Anza Special Area.
 Specific Plan: South Sunnyvale-Saratoga Conceptual Plan.  Zoning District: Planned Development with General Commercial and Multiple-Family Residential (P[CG, Res 5-15]) within the South Sunnyvale-Saratoga Conceptual Plan.  Density: 15 dwelling units per acre (maximum).
 Height: 30 feet per General Plan Figure LU-2.

Pursuant to the State Density Bonus Law and the City’s Density Bonus ordinance (Cupertino Municipal Code [CMC] Chapter 19.56, Density Bonus), the project applicant has requested the following, to the extent needed to comply with applicable objective standards:
 A density bonus to increase allowed residential density of the project site.  A waiver from CMC 19.46.070(B) requiring a maximum floor area ratio (FAR) of 85 percent of the proposed net lot size.
 A waiver from General Plan Figure LU-2 requiring a 30-foot height maximum development standard.
 A waiver from Condition of Approval (COA) (18)(a) of the S. Sunnyvale-Saratoga Conceptual Plan and CMC section 19.46.070, which limits building heights to three stories.  A waiver from CMC 19.36.070(C)(1) requiring that developments have a minimum front setback of 35 feet from face of street curb if the project site abuts an arterial street or major collector.
 A waiver from CMC 19.36.070(C)(1) requiring that developments not located on an arterial or major collector street, shall have a minimum front setback of 20 feet from the front property line.
 A waiver from CMC 19.46.070(F)(1) requiring that new developments select at least two design features from the three identified, including front architectural feature, stairway with at least three stairs leading to the front entrance, and pitched roof with a slope of at least 3:12.
 A waiver from COA 17 of the S. Sunnyvale-Saratoga Conceptual Plan requiring that developments provide a 20-foot landscape buffer between parking lots and existing singlefamily development.  A waiver from COA 19 of the S. Sunnyvale-Saratoga Conceptual Plan requiring that developments provide a 15- to 20-foot landscape buffer between new buildings and existing 268
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single-family residential areas to minimize privacy intrusion into adjoining rear yards of single-family homes.
 A waiver from COA 18 of the S. Sunnyvale-Saratoga Conceptual Plan requiring a 50-foot setback for third floor portions of buildings.
 A waiver from COA 19(a) and (c) of the S. Sunnyvale-Saratoga Conceptual Plan requiring new development to provide landscaped setback areas adjacent to the public right-of-way.  A waiver from COA 24(c) of the S. Sunnyvale-Saratoga Conceptual Plan requiring a 10- to 15- foot landscape parkway strip on S. De Anza Boulevard.
 A waiver from General Plan, Figure LU-2 for building planes maintained under a 1:1 slope line.
 One (1) concession to not have to provide commercial uses on the site.

2.4 PROPOSED PROJECT
The project applicant, Dividend Homes, Inc., is proposing a residential development that would involve the demolition of the existing commercial building and the construction of 35 units in five, seven-plex townhome buildings. The proposed project would include 30 market-rate units, three units at the very low-income level, and two units at a moderate-income level, with a total building floor area of 94,215 square feet.

The townhomes would have three to four bedrooms and 2.5 to 3.5 bathrooms ranging in size from 2,137 to 2,704 square feet, with two-car garages. Each building would be three to four stories and a maximum of 44 feet, 9 inches tall at the highest point as measured from the finished floor. The proposed project would provide 77 on-site vehicle parking spaces, with private two-car parking spaces for each unit and seven additional guest spaces. Each unit would have a second-floor balcony and roof deck, providing 327 to 515 square feet of private outdoor space per unit.
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AUGUST 2026 6

3. FINDINGS CONCERNING CEQA EXEMPTION

3.1 PUBLIC RESOURCES CODE SECTION 21080.66
Assembly Bill (AB) 130, signed into law on June 30, 2025, and codified in Public Resources Code (PRC) Section 21080.66, exempts qualifying infill housing development from CEQA review, creating a new statutory exemption. This exemption applies to any required permits, entitlements, or other discretionary approvals for a broad range of housing types. This section demonstrates that the proposed project meets the requirements of PRC Section 21080.66 and is organized as follows:
 Infill Requirements. This section describes the project’s consistency with the allowed housing development type defined in PRC Section 21080.66(a), subdivisions (1) through (5) and (8).
 Environmental Criteria. This section describes the individual environmental requirements pursuant to PRC Section 21080.66(a), subdivisions (6) and (7).  Tribal Cultural Resources. This section describes the tribal notification and outreach requirements pursuant to PRC Section 21080.66(b).
 Environmental Assessment (Hazardous Materials). This section describes the requirements for the identification and treatment of hazardous materials pursuant to PRC Section 21080.66(c).
 Other Requirements. This section describes the Labor Code requirements and eligibility of a housing development project for a density bonus, incentives or concessions, waivers or reductions of development standards, and reduced parking ratios pursuant to PRC Sections 21080.66(d) and (e), respectively.

3.2 ANALYSIS IN SUPPORT OF FINDINGS
Infill Requirements
Table 1, Infill Requirements and Project Consistency, demonstrates that the proposed project meets the requirements of PRC Section 21080.66(a), which specifically defines a “housing development project” in Government Code Sections 65905.5(b) and 65589.5(h)(2). 270
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Table 1 Infill Requirements and Project Consistency
Infill Requirements Consistency Determination
PRC Section 21080.66(a). Use Type.

The project meets the definition of a “housing development project” pursuant to Government Code Sections 65905.5(b) and 65589.5(h)(2).

The project meets any of the following criteria for a housing development:
 Residential units only
 Mixed-use development which includes residential and non-residential uses that meet any of the following criteria:
o At least two-thirds of the project's new or converted square footage is designated for residential use
o At least 50 percent of the project's new or converted square footage is designated for residential use and the project meets both of the following:
- The project includes at least 500 net new residential units - No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging1

o At least 50 percent of the net new or converted square footage is designated for residential use and the project meets all of the following:
- The project includes at least 500 net new residential units - The project includes the demolition or conversion of at least 100,000 square feet of non-residential use
- The project includes the demolition of at least 50 percent of the existing non-residential uses on the site
- No portion of the project is designated for transient lodging, except a portion of the project may be designated for use as a residential hotel (as described above)
 Transitional housing or supportive housing; or
Consistent. The proposed project includes the construction of 35 residential units only.
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Table 1 Infill Requirements and Project Consistency
Infill Requirements Consistency Determination
 Farmworker housing, as defined in California Health and Safety Code Section 50199.7(h)
PRC Section 21080.66(a)(1): Size.

A project site does not exceed 20 acres or four acres for a builder’s remedy project as defined in Government Code Section 65589.5(h)(11), or a housing development project or emergency shelter that meets the criteria in Government Code Section 65589.5(d)(5) as it read before January 1, 2025.

Consistent. The project site is 1.67 acres and does not exceed 20 acres.

PRC Section 21080.66(a)(2): Location. The project site is within the boundaries of an incorporated municipality or an urban area, as defined by the United States Census Bureau. Based on the U.S. Census Bureau’s criteria for urban areas, an area must encompass at least 5,000 people or at least 2,000 housing units to be considered an urban area. In addition, an area must have 425 housing units per square mile, which defines the initial urban core. Two hundred (200) units per square mile shall fill in the remainder of the urban area. Each urban area shall contain at least one high-density nucleus, with 1,275 housing units per square mile. 2 Consistent. The project site is within the city of Cupertino, an incorporated city.

PRC Section 21080.66(a)(3): Urban Development. The project site meets any of the following criteria:
 The site has been previously developed with an urban use;  At least 75 percent of the perimeter of the site adjoins parcels developed with urban uses;
 At least 75 percent of the area within a one-quarter mile radius of the site is developed with urban uses;
 At least three sides of the site are developed with urban uses and at least two-thirds of the site’s perimeter adjoins parcels that are developed with urban uses (for sites with four sides)
Consistent. The project site is developed with urban uses, including an existing commercial building and a paved surface parking lot. The project site is surrounded by urban uses and paved public streets, including commercial and residential uses that adjoin the northern and western boundaries of the site, South De Anza Boulevard and commercial development, which adjoin the eastern boundary of the site, and Prospect Road and commercial development that adjoin the southern boundary of the site. In addition, surrounding land uses within one-quarter mile of the site are developed with urban uses. 272
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Table 1 Infill Requirements and Project Consistency
Infill Requirements Consistency Determination
PRC Section 21080.66(a)(4): General Plan or Zoning Consistency. The project is consistent with the applicable general plan or zoning ordinance, and any local coastal program as applicable.

If the zoning and general plan are not consistent with one another, the project would satisfy this requirement if it were consistent with one.

The approval of a density bonus, incentives or concessions, waivers or reductions of development standards, and reduced parking ratios shall not be the basis for determining that the project is inconsistent with this requirement.

Consistent. The project site is within the General Plan South De Anza Special Area, and the General Plan land use designation is Commercial/Office/Residential. The project site is also within the South Sunnyvale-Saratoga Conceptual Zoning Plan, and the zoning district is Planned Development with General Commercial and Multiple-Family Residential (P[CG, Res 5-15]). The General Plan land use designation allows residential development at a density of up to 15 dwelling units per acre, and the zoning district allows residential development.

Consistent with the General Plan, the South De Anza Special Area allows residential development at a density of 5 to 15 dwelling units per acre for parcels south of SR-85. As proposed, 11.5 percent of the residential units are very low income, which correlates to a 35 percent density bonus per the State Density Bonus Law and CMC Chapter

19.56. Accordingly, the project would result in a residential density of

26.5 dwelling units per acre, which is within the density allowed for the project site under the density bonus, which allows for up to 36 units.

The proposed maximum building height of 44 feet, 9 inches, is consistent with the General Plan’s 30-foot height limit allowed for the site with the applicable density bonus waiver.

PRC Section 21080.66(a)(5): Density. The project will be at least one-half of the following applicable density specified in Government Code Section 65583.2(c)(3)(B), to accommodate housing for lower income households3  At least 15 units per acre allowed for sites within an incorporated city within a non-metropolitan county and for a non-metropolitan county that has a micropolitan area
 At least 10 units per acre allowed for sites within an unincorporated area in a non-metropolitan county not included in the above requirement
Consistent. The proposed site is in a metropolitan county (i.e., Santa Clara County). Therefore, the minimum density requirement under PRC Section 21080.66(a)(5) is at least one half of 30 dwelling units per acre.

The project would have a residential density of 26.5 dwelling units per acre.
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Table 1 Infill Requirements and Project Consistency
Infill Requirements Consistency Determination
 At least 20 units per acre allowed for sites within suburban jurisdictions  At least 30 units per acre allowed for sites within a jurisdiction in a metropolitan county.

PRC Section 21080.66(a)(8): Lodging Uses.

For a project that was deemed complete pursuant Government Code Section 65589.5(h)(5) on or after January 1, 2025, no portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging. For the purposes of this section, “other transient lodging” does not include either of the following:
 A residential hotel, as defined in Section 50519 of the Health and Safety Code.
 After the issuance of a certificate of occupancy, a resident’s use or marketing of a unit as short-term lodging, as defined in Section 17568.8 of the Business and Professions Code, in a manner consistent with local law.

Consistent. The proposed project would not include hotel, motel, bed and breakfast inn, or other transient lodging uses.

Notes:
1 For a project that was deemed complete pursuant to Government Code Section 65589.5(h)(5) on or after January 1, 2025, no portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging. Other transient lodging does not include either of the following: a residential hotel, as defined in Section 50519 of the Health and Safety Code, or a resident’s use or marketing of a unit as short-term lodging, as defined in Section 17568.8 of the Business and Professions Code.
2 United States Census Bureau, 2026, April 7 (accessed), Redefining Urban Areas following the 2020 Census, https://www.census.gov/newsroom/blogs/randomsamplings/2022/12/redefining-urban-areas-following-2020-census.html. 3 California Legislative Information, 2026, April 7 (accessed), Government Code – GOV: ARTICLE 10.6. Housing Elements [65580 - 65589.11], https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65583.2.&nodeTreePath=12.1.10.10&lawCode=GOV. 274
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Environmental Criteria
Pursuant to PRC Section 21080.66(a), the project site must meet the environmental criteria identified in Government Code Section 65913.4(a)(6). These environmental criteria and the proposed project’s consistency are detailed in Table 2, Environmental Criteria and Project Consistency. As shown in Table 2, the project site would meet the environmental criteria.

Table 2 Environmental Criteria and Project Consistency
Environmental Criteria Consistency Determination
PRC Section 21080.66(a)(6)
Coastal Zone. The project site cannot be located in a
coastal zone, as defined in the Public Resources Code
(PRC) Division 20.

Consistent. The project site is not in a coastal
zone. It is approximately 20 miles east of the
Pacific Ocean. The California Coastal
Commission designates the boundary of
coastal zones to extend 3 nautical miles
offshore and does not include the project
site.1
Farmland. The project site cannot be located on
either prime farmland or farmland of statewide
importance, as defined pursuant to United States
Department of Agriculture land inventory and
monitoring criteria, as modified for California, and
designated on the maps prepared by the Farmland
Mapping and Monitoring Program of the
Department of Conservation, or land zoned or
designated for agricultural protection or
preservation by a local ballot measure that was
approved by the voters of that jurisdiction.

Consistent. The project site is not on prime
farmland or farmland of statewide
importance. The California Department of
Conservation designates the city of Cupertino
as Urban and Built-Up Land.2 Additionally, as
discussed in Section 2.3, Land Use and Zoning
Designations, the project site is not zoned for
agricultural uses.

Wetlands. The project site cannot be located on
wetlands, as defined in the United States Fish and
Wildlife Service Manual, Part 660 FW 2.

Consistent. The U.S. Fish and Wildlife Service
does not identify any wetlands on the project
site.3
Fire Hazard Severity Zone. The project site cannot be
within a very high fire hazard severity zone (FHSZ), as determined by the Department of Forestry and Fire
Protection (CAL FIRE) pursuant to Government Code
Section 51178, or within a high or very high FHSZ as
indicated on maps adopted by CAL FIRE pursuant to
PRC Section 4202. This requirement does not apply
to sites that have adopted fire hazard mitigation
measures pursuant to existing building standards or
Consistent. The project site is not within a
very high FHSZ, as designated by CAL FIRE. It
is approximately 1.5 miles southeast of a very
high FHSZ in a Local Responsibility Area, and 2
miles east of lands that CAL FIRE designates
as a very high FHSZ in a State Responsibility
Area.4
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Table 2 Environmental Criteria and Project Consistency
Environmental Criteria Consistency Determination
state fire mitigation measures applicable to the
development.

Hazardous Waste Site. The project site cannot be on
a hazardous waste site that is listed pursuant
to Government Code Section 65962.5 (Cortese List)
or a hazardous waste site designated by the
Department of Toxic Substances Control (DTSC)
pursuant to Health and Safety Code Section 25356
(EnviroStor online database), unless DTSC has
cleared the site for residential use or residential
mixed uses.

Consistent. The project site is not included on
the Hazardous Waste and Substances Site List
(Cortese), pursuant to Government Code
Section 65962.5.5 Additionally, the project site
is not listed on any of the following California
Environmental Protection Agency’s (CalEPA)
Cortese List Data Resources:6
 List of Hazardous Waste and Substances
sites from Department of Toxic Substances
Control (DTSC) EnviroStor database5
 List of Leaking Underground Storage Tank
sites from the State Water Board’s
GeoTracker database7
 List of solid waste disposal sites identified
by the Water Board with waste
constituents above hazardous waste levels
outside the waste management unit8
 List of Site Cleanup Program Sites on the
Cortese List from the Water Boards9
 List of hazardous waste facilities subject to
corrective action pursuant to Section
25187.5 of the Health and Safety Code,
identified by DTSC10
Earthquake Fault Zone. The project site cannot be
within a delineated earthquake fault zone as
determined by the State Geologist in any official
maps published by the State Geologist, unless the
development complies with applicable seismic
protection building code standards adopted by the
California Building Standards Commission under the
California Building Standards Law of Health and
Safety Code Division 13, and by any local building
department under Title 2 of the Government Code,
Division 1, Chapter 12.2.

Consistent. The California Geological Survey
does not map an earthquake fault zone in or
near the project site.11
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Table 2 Environmental Criteria and Project Consistency
Environmental Criteria Consistency Determination
Federal Emergency Management Agency (FEMA)
Designations. The project site cannot be within a
special flood hazard area subject to inundation by
the 1 percent annual chance flood (100-year flood)
as determined by FEMA in any official maps
published by FEMA, unless either of the following
are met:
 The site has been subject to a Letter of Map
Revision prepared by FEMA and issued to the
local jurisdiction.
 The site meets FEMA requirements necessary to
meet minimum flood plain management criteria
of the National Flood Insurance Program.

The project site also cannot be within a regulatory
floodway as determined by FEMA in any official
maps published by FEMA, unless the development
has received a no-rise certification in accordance
with Title 44 of the Code of Federal Regulations,
Section 60.3(d)(3).

Consistent. FEMA’s Flood Insurance Rate Map
designates the project site as an Area of
Minimal Flood Hazard, Zone X. The project
site is not within a regulatory floodway.12
Conservation Plan. The project site cannot be on
lands identified for conservation in an adopted
natural community conservation plan pursuant to
the Natural Community Conservation Planning Act,
habitat conservation plan pursuant to the federal
Endangered Species Act of 1973, or other adopted
natural resource protection plan.

Consistent. The Santa Clara Valley Habitat
Plan boundaries cover a small portion of
Cupertino. The project site is immediately
adjacent to the western boundary of the plan
area but is entirely outside the boundaries of
the plan area.
13 Special Status Species Habitat. The project site
cannot be located in a habitat for protected species
identified as candidate, sensitive, or species of
special status by state or federal agencies, fully
protected species, or species protected by the
federal Endangered Species Act of 1973, the
California Endangered Species Act, or the Native
Plant Protection Act.

Consistent. The U.S. Forest Service Existing
Vegetation: Region 05 mapping program
classifies the project site as “urban,” which
tends to have low to poor wildlife habitat
value due to replacement of natural
communities, fragmentation of remaining
open space areas and parks, and intensive
human disturbance.14 The California Natural
Diversity Database has no record of specialstatus plant and animal species on the project site or urbanized areas within a one-mile area
surrounding the site.15, 16 There are no natural
lands within a one-mile area of the project
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Table 2 Environmental Criteria and Project Consistency
Environmental Criteria Consistency Determination
site. The project site consists of commercial
development and a surface parking lot, and
has no value as habitat for endangered, rare,
or threatened species.

Lands under Conservation Easement. The project
site cannot be on lands under conservation
easement.

Consistent. The project site is not within a
conservation easement.17
PRC Section 21080.66(a)(7)
Historic Structure. Pursuant to PRC Section
21080.66(a)(7), the project cannot require the
demolition of historic structure that was placed on a
national, state, or local historic register before the
date a preliminary application was submitted for the
project.

Consistent. The project would include the
demolition of the existing commercial
building on the project site. The existing
building on the project site is not currently
listed on the National Register of Historic
Places18 or the list of California Register of
Historical Resources,19 or the most recent list
of Cupertino historically significant
resources.20
Sources:

1. California Coastal Commission, 2019, Maps: Coastal Zone Boundary, April 1, 2026 (accessed), https://www.coastal.ca.gov/maps/czb/.

2. California Department of Conservation, 2022, California Important Farmland Finder, April 1, 2026 (accessed), https://maps.conservation.ca.gov/DLRP/CIFF/.

3. United States Fish and Wildlife Service, National Wetlands Inventory, 2026, April 1 (accessed), https://fwsprimary.wim.usgs.gov/wetlands/apps/wetlands-mapper/.

4. California Department of Forestry and Fire Protection, 2026, April 1 (accessed), Fire Hazard Severity Zone Viewer, https://experience.arcgis.com/experience/6a9cb66bb1824cd98756812af41292a0.

5. California Department of Toxic Substances Control, 2026, April 1 (accessed), Hazardous Waste and Substances Site List (Cortese),
https://www.envirostor.dtsc.ca.gov/public/search?cmd=search&reporttype=CORTESE&site_type=CSITES,FUDS &status=ACT,BKLG,COM&reporttitle=HAZARDOUS+WASTE+AND+SUBSTANCES+SITE+LIST+%28CORTESE%29.

6. California Environmental Protection Agency, 2026, April 1 (accessed), Cortese List Data Resources, https://calepa.ca.gov/SiteCleanup/CorteseList/.

7. State Water Resources Control Board, 2026, April 1 (accessed), GeoTracker, https://geotracker.waterboards.ca.gov/search?CMD=search&case_number=&business_name=&main_street_n ame=&city=&zip=&county=&SITE_TYPE=LUFT&oilfield=&STATUS=&BRANCH=&MASTER_BASE=&Search=Search.

8. California Environmental Protection Agency, 2026, April 1 (accessed), Sites Identified with Waste Constituents Above Hazardous Waste Levels Outside the Waste Management Unit, https://calepa.ca.gov/wpcontent/uploads/2026/02/CorteseList-Solid-Waste-Facilities_2026.pdf. 278
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9. California Environmental Protection Agency, 2026, April 1 (accessed), 2026 Cortese List – Site Cleanup Program, https://calepa.ca.gov/wp-content/uploads/2026/03/2026_scp_cortese.list_lat.long_.pdf.

10. California Environmental Protection Agency, 2026, April 1 (accessed), Cortese List: Section 65962.5(a), https:// calepa.ca.gov/sitecleanup/corteselist/section-65962-5a/.

11. California Geological Survey, 2026, April 1 (accessed), Earthquake Zones of Required Investigation, https://maps.conservation.ca.gov/cgs/informationwarehouse/eqzapp/.

12. Federal Emergency Management Agency, 2009, May 18, FEMA Flood Map Service Center: Search by Address, April 1, 2026 (accessed),
https://msc.fema.gov/portal/search.

13. Santa Clara Valley Habitat Agency, 2013, Santa Clara Valley Habitat Plan Geobrowser, April 1, 2026 (accessed), https://scvha.maps.arcgis.com/apps/webappviewer/index.html?id=f2268679c2fa49489e3f7d6e8377837e.

14. U.S. Forest Service, 2026, April 1 (accessed), Existing Vegetation: Region 05, https://usfs.maps.arcgis.com/apps/mapviewer/index.html?layers=760dce5f2a0648d7a92d2a5499b8d566.

15. California Natural Diversity Database, 2026, April 3 (accessed), CNDDB Maps and Data, https://wildlife.ca.gov/Data/CNDDB/Maps-and-Data.

16. City of Cupertino, 2024, June 18, General Plan Amendment, Housing Element Update, and Associated Rezoning EIR, State Clearinghouse No. 2014032007, Chapter 4.3, Biological Resources, Figure 4.3-2, SpecialStatus Plant and Animal Species, page 4.3-10.

17. California Natural Resources Agency, 2026, April 1 (accessed), California Conservation Easement Database (CCED) Viewer, https://gis.cnra.ca.gov/apps/cced/.

18. National Park Service, 2025, August 5, National Register of Database and Research, April 1, 2026 (accessed), https://www.nps.gov/subjects/nationalregister/database-research.htm#table.

19. California Office of Historic Preservation, 2026, April 2 (accessed), California Historical Resources, https://ohp.parks.ca.gov/ListedResources/?view=county&criteria=43.

20. City of Cupertino, 2024, Cupertino General Plan: Community Vision 2015-2040, Chapter 3, Land Use and Community Character Element, Figure LU-3, Historic Resources, page LU-26, https://www.cupertino.gov/YourCity/Departments/Community-Development/Planning/General-Plan/General-Plan-CommunityVision#docaccess-f0c70bca2c8cfef3d8c6b45c2850dbf0651f7ba00a4e143071328fcb941a7c44.

Tribal Cultural Resources

TRIBAL OUTREACH AND CONSULTATION
PRC Section 21080.66(b) requires local government to provide formal notification via certified mail and email to each California Native American tribe that is traditionally and culturally affiliated with the project site as an invitation to consult on the proposed project, its location, and the potential for the project to impact tribal cultural resources pursuant to one of the following deadlines:
 Within 14 days of the application for the project being deemed complete, pursuant to Government Code Section 65589.5(h)(5).
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 Within 14 days of notifying the local government that the project is eligible to be exempt from this division pursuant to this section for projects whose applications were deemed complete before July 1, 2026.

Tribal Notification
The City received a request to be notified about projects in the city of Cupertino from the Tamien Nation on May 28, 2021, as the city is within the geographic area with which they are traditionally and culturally affiliated. The City routinely notifies the Tamien Nation of all applicable projects pursuant to the Native American Historic Resource Protection Act, commonly referred to as it’s legislative bill number, AB 52. In addition, the City sent a request to the Native American Heritage Commission (NAHC) for a Tribal Contacts List on August 4, 2025.

The NAHC provided a consultation list with a total of 22 contacts for 9 tribes that are traditionally and culturally affiliated with the geographic area of the city of Cupertino on August 5, 2025, as listed:
 Amah Mutsun Tribal Band  Muwekma Ohlone Tribe of the SF Bay Area  Amah Mutsun Tribal Band of Mission San
Juan Bautista
 Northern Valley Yokut / Ohlone Tribe
 Tamien Nation
 Costanoan Rumsen Carmel Tribe  The Ohlone Indian Tribe  Indian Canyon Mutsun Band of Costanoan  Wuksachi Indian Tribe/Eshom Valley Band The applicant notified the City that the proposed project is eligible to be exempt pursuant to PRC Section 21080.66 on February 2, 2026. On February 16, 2026, the City sent outreach request letters via certified mail and email for each tribal contact provided. Table 3, Tribal Notification, Outreach, and Consultation Initiation, shows the contacts that requested consultation.

Table 3 Tribal Notification, Outreach, and Consultation Initiation Tribe Name Tribe Contact
Date of
Response
Date of
Consultation
Initiation
Amah Mutsun Tribal Band Ed Ketchum, Vice-Chairperson -- -- Amah Mutsun Tribal Band of
Mission San Juan Bautista
Garry Zimmer, Senior Cultural Monitor
and Consultant -- --
Amah Mutsun Tribal Band of
Mission San Juan Bautista
Shelby Brown, Senior Cultural Monitor
& Consultant, Councilwoman -- --
Amah Mutsun Tribal Band of
Mission San Juan Bautista
Christopher Zimmer, Senior Cultural
Monitor and Consultant, Councilman -- --
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Table 3 Tribal Notification, Outreach, and Consultation Initiation Tribe Name Tribe Contact
Date of
Response
Date of
Consultation
Initiation
Amah Mutsun Tribal Band of
Mission San Juan Bautista
Michelle Zimmer, Senior Cultural
Monitor and Consultant -- --
Amah Mutsun Tribal Band of
Mission San Juan Bautista Irenne Zwierlein, Chairperson -- -- Costanoan Rumsen Carmel Tribe Carla Munoz, Tribal Council -- -- Costanoan Rumsen Carmel Tribe Samuel Rodriguez, Cultural Resource Officer -- --
Costanoan Rumsen Carmel Tribe Henry Muñoz, Cultural Resource Officer -- --
Indian Canyon Mutsun Band of
Costanoan
Ann Marie Sayers, Retired Honorable
Elder -- --
Indian Canyon Mutsun Band of
Costanoan
Kanyon Sayers-Roods, Tribal
Chairwoman 3/17/26 3/31/2026
Muwekma Ohlone Tribe of the
SF Bay Area Bernadette Quiroz, MLD Tribal Rep. 2/23/26 3/9/26 Muwekma Ohlone Tribe of the
SF Bay Area Charlene Nijmeh, Chairperson -- --
Northern Valley Yokut / Ohlone
Tribe Katherine Perez, Chairperson -- --
Northern Valley Yokut / Ohlone
Tribe
Timothy Perez, Tribal Compliance
Officer -- --
Tamien Nation Lillian Camarena, Secretary 3/5/26 3/19/26 Tamien Nation Quirina Geary, Chairperson -- --
Tamien Nation Johnathan Wasaka Costillas, THPO -- --
The Ohlone Indian Tribe Desiree Vigil, THPO -- --
The Ohlone Indian Tribe Andrew Galvan, Chairperson -- -- The Ohlone Indian Tribe Vincent Medina, Cultural Leader -- -- Wuksachi Indian Tribe/ Eshom
Valley Band Kenneth Woodrow, Chairperson -- --
Source: Native American Heritage Commission, August 2025.

Note. Where no dates are identified, no response was received so consultation was not initiated. 281
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Sacred Lands File Search
Concurrently with the tribal contact list provided on February 12, 2026, the City also requested a Sacred Lands File (SLF) search. There are no known cultural resources on the project site and the results of the SLF search conducted by Mathew Lin, MPP, Cultural Resources Analyst, of the NAHC, on February 12, 2026, were negative.

PROTECTION OF TRIBAL CULTURAL RESOURCES
Pursuant to PRC Section 21080.66(b)(4)(A), the project applicant is required to comply with any enforceable agreements reached during the project consultation.

As a result of project consultation, the Muwekma Ohlone Tribe of the SF Bay Area formally recommended: (1) tribal monitoring during all ground-disturbing activities; and (2) implementation of cultural sensitivity training for all project personnel prior to the start of work.

In addition, the Tamien Nation formally recommended: (1) tribal cultural monitoring for all ground disturbing activities; (2) tribal cultural awareness training; and (3) archaeological monitoring. The Indian Canyon Mutsun Band of Costanoan did not provide a response to the opportunity to formally consult with the City during the 45-day period following the initial request for consultation.

No mutual agreement between the California Native American tribes and the project applicant was made . Thus, pursuant to PRC Section 21080.66(b)(4)(B), the following measures are required as a binding condition to be completed by the project applicant prior to issuance of building permits:
 Monitor and Avoid Tribal Cultural Resources. Pursuant to PRC Section 21080.66(b)(4)(B)(i), (ii), (iii), (iv), and (vi), the following measures are required for the protection of tribal cultural resources:
 Tribal Monitor. The project shall include tribal monitoring during all grounddisturbing activities, as follows:
- The California Native American tribe shall designate the monitor. - The tribal monitor shall comply with the applicant’s site access and workplace safety requirements.
- The applicant shall compensate the tribal monitor at a reasonable rate, determined in good faith, that aligns with customary compensation for cultural resource monitoring, considering factors such as the scope and duration of the project.
 Avoid Tribal Cultural Resources. Tribal cultural resources shall be avoided where feasible, in accordance with PRC Section 21084.3(a). In furtherance of this 282
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requirement, where feasible, the project applicant shall provide deference to tribal preferences regarding access to spiritual, ceremonial, and burial sites, and incorporate tribal traditional knowledge in the protection and sustainable use of tribal cultural resources and landscapes.
 Treatment and Documentation. All treatment and documentation of tribal cultural resources shall be conducted in a culturally appropriate manner, consistent with PRC Section 21083.9.
 Records Search. A California Historical Resources Information System archaeological records search and a tribal cultural records search shall be completed for the project site.
 Human Remains. The project shall comply with Section 7050.5 of the Health and Safety Code and Section 5097.98, including immediate work stoppage upon discovery of human remains or burial grounds, and treatment in accordance with applicable law and in consultation with the affected California Native American tribe.

As explained in the Tribal Outreach and Consultation section, pursuant to PRC Section 21080.66(b)(4)(B)(v), a Sacred Lands Inventory request was completed, and this requirement has been fulfilled for the proposed project. No enforceable agreements meeting the definition as provided in PRC Section 21080.66(b)(5)(B) were agreed upon during the consultation period.

TRIBAL CULTURAL RESOURCES CONSISTENCY SUMMARY
The City completed the tribal outreach requirements pursuant to PRC Section 21080.66(b)(1) through (3) and conditioned the project to implement the requirements of PRC Section 21080.66(b)(4). As such, the project is consistent with the tribal outreach and consultation and protection of tribal cultural resources requirements described in PRC Section 21080.66(b).

Environmental Assessment (Hazardous Materials)

PHASE I ENVIRONMENTAL SITE ASSESSMENT
PRC Section 21080.66(c)(1)(A) states that local government shall require the project applicant to complete a Phase I Environmental Site Assessment (ESA) as a condition of approval for the development, as defined in Section 78090 of the Health and Safety Code. Based on PRC Section 21080.66(c)(1)(B), if a recognized environmental condition (REC) is found, the project applicant shall complete a preliminary endangerment assessment1 (in accordance with the California Health and Safety Code Section 78095), prepared by an environmental assessor to determine 1 Based on the California Health and Safety Code Section 78095, preliminary endangerment assessment includes the following activities: sampling and analysis of a site; a preliminary determination of the type and extent of hazardous material contamination of a site; and a preliminary evaluation of the risks the hazardous materials contamination of a site may pose to public health or the environment. 283
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the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity. Pursuant to PRC Section 21080.66(c)(1)(C), if a release of a hazardous substance is found to exist on the site, the release shall be removed, or any effects of the release shall be mitigated to levels required by current federal and State statutory and regulatory standards before the local government issues a certificate of occupancy. Pursuant to PRC Section 21080.66(c)(1)(D), if a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and State statutory and regulatory standards before the local government issues a certificate of occupancy.

HAZARDOUS MATERIALS CONSISTENCY REQUIREMENTS
A Phase I ESA was prepared and third-party peer reviewed as part of the City’s requirements in Cupertino Municipal Code Chapter 17.04, Standard Environmental Protection Requirements, that identifies standard environmental protection requirements that all construction projects must meet. The results of the Phase I ESA did not find any RECs. The Phase I ESA identified a historical REC (HREC) on the property adjoining the project to the south. In 2004, Santa Clara County issued a closure letter for the property. As a result, the Phase I ESA concluded that no further investigation is recommended. Accordingly, the project is consistent with the PRC Section 21080.66(c)(1) criteria regarding hazardous materials.

PROXIMITY TO FREEWAYS
For projects within 500 feet of a freeway, PRC Section 21080.66(c)(2) requires:
 The building shall have a centralized heating, ventilation, and air-conditioning (HVAC) system.
 The outdoor air intakes for the HVAC system shall face away from the freeway.  The building shall provide air filtration media for outside and return air that provides a minimum efficiency reporting value of 16.
 The air filtration media shall be replaced at the manufacturer’s designated interval.  The building shall not have any balconies facing the freeway.

Project Consistency. The project site is approximately 1,700 feet west of SR-85, which is the nearest freeway to the project site; therefore, the proposed project is not subject to PRC Section 21080.66(c)(2) criteria.
284
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1655 SOUTH DE ANZA BOULEVARD RESIDENTIAL DEVELOPMENT PROJECT

CEQA EXEMPTION MEMORANDUM

CITY OF CUPERTINO

3. FINDINGS CONCERNING CEQA EXEMPTION
AUGUST 2026 21
Other Requirements

LABOR CODE
PRC Section 21080.66(d) includes additional labor requirements for housing development projects, including:
 The payment of at least the general prevailing rate of per-diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations, to construction workers employed in the execution of a 100 percent affordable housing development project.
 Compliance with the labor standards outlined in Government Code Section 65913.4(a)(8) for buildings over 85 feet in height above grade.
 Compliance with the labor standards of Government Code Section 65912.130 for projects of 50 units or greater in the city and county of San Francisco, for any construction craft where at least 50 percent of the units in market-rate multifamily housing projects that received their certificate of occupancy between 2022 and 2024, inclusive, were built by workers that were paid not less than the general prevailing rate of per-diem wages.  Extension of Labor Code Section 218.8 to the project applicant in addition to the direct contractor or subcontractor.
 Allowance of a joint labor-management cooperation committee to undertake specific actions to court.

Project Consistency. The proposed project is not a 100 percent affordable housing development, over 85 feet in height above grade, or in the city or county of San Francsico. The proposed project would comply with the Labor Code and the Business and Professions Code described previously.

ELIGIBILITY FOR MODIFICATIONS OF DEVELOPMENT STANDARDS
As stated in PRC Section 21080.66(e), this PRC section does not affect the eligibility of a housing development project for a density bonus, incentives or concessions, waivers or reductions of development standards, and reduced parking ratios pursuant to Government Code Section 65915. Therefore, the applicability of this statutory exemption does not prohibit the proposed project from requesting waivers, exceptions, or reductions described in Section 2.3, Land Use and Zoning Designations.
285
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1655 SOUTH DE ANZA BOULEVARD RESIDENTIAL DEVELOPMENT PROJECT

CEQA EXEMPTION MEMORANDUM

CITY OF CUPERTINO

3. FINDINGS CONCERNING CEQA EXEMPTION
22 PlaceWorks

3.3 CONCLUSION
As analyzed in Section 3.1, Public Resources Code Section 21080.66, the proposed project meets the criteria for statutory exemption. Accordingly, this document finds that a Notice of Exemption is appropriate for the proposed project pursuant to CEQA Guidelines Section 15062. 286
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1655 SOUTH DE ANZA BOULEVARD RESIDENTIAL DEVELOPMENT PROJECT

CEQA EXEMPTION MEMORANDUM

CITY OF CUPERTINO

3. FINDINGS CONCERNING CEQA EXEMPTION
AUGUST 2026 23
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Cupertino City CouncilOctober 6, 2026

Cupertino City Council
October 6, 2026