Do you know that an employee swindled nearly $800,000 from the City of Cupertino, running an embezzlement scam which lasted from 2000-2014, and was finally addressed in 2018.
What is surprising is that a coterie of ex-Mayors of Cupertino, who were in the council prior till 2018, have been sending extremely inflammatory mails about the resident focussed council, which was elected for the first time in November 2018. This is the coterie which presided over this period of embezzlements and weak financial controls!
In order to avoid such scams, the residents focussed Cupertino City Council, instituted an external audit (via Moss-Adams) of the financial operations of the City. The audit identified serious gaps in the City’s Processes, and a plan to fix them has been put in place. You can read the report here
Year: 2022
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Restoring Financial Accountability in Cupertino
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Whose interests does Ava Chiao Represent?
School Closures amid Over Crowded Schools
CUSD has among the most crowded schools in the region. In spite of that there are certain elements who want to close our school campuses.
Ava Chiao & School Board Future
One such candidates is Ava Chaio for CUSD Board.Ava has stated that she supports school closure. Beyond supporting school closure, she has even proposed plans on how the land of the closed schools should be used to build housing.Ava is backed by unions who are pouring in tens of thousands of dollars to her campaign; she will not be representing the parents’ or the children’s interests on the board.
Ava is being supported by other candidates who have championed for school closure like JR Fruen. Ava has contributed to JR Fruen’s campaign.No Plans to Adress Students’ Challenges
However, we have seen little from Ava on how the problems created by over crowded schools will be addressed.Whether it is the lack of lockers in middle school, children not having table space to have their lunch (they sit on the ground), the large traffic bottlenecks, Ava has no plans to address those.School Closure & Property Values
With more than 30% of children in CUSD going to private schools, one of the major reasons why people paid premium prices for Cupertino homes is fading away. This will impact the desirability of Cupertino and will impact property prices negatively.
Save Cupertino Schools and Your Home Values
Even if you do not have school going children, your home values are strongly impacted by the quality of schools.In order to ensure that CUSD schools thrive and your homes do not lose value, please do not vote for any candidate who supports school closure.Ava Chiao has even proposed plans for how to use land under the closed schools; she has no plans on how to reduce the exodus to private schools from CUSD.To preserve home values, please vote for Govind Tatachari, Liang Chao, and Steven Scharf for Cupertino City Council, and Darcy Paul, Satheesh Madhathil & Jerry Liu for CUSD Board.
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Home Values will Decline with CUSD Decline
It is no secret that homes in CUSD command a premium to neighboring communities because of the high quality of schools. Real Estate listings in Cupertino specifically mention the Cupertino schools the children in the home will attend.
But This May Not Last Forever
In 2021 CUSD shut down three school campuses claiming a financial shortfall, even though their own projections show a surplus of over 39 Million dollars over the next five years.CUSD has the most crowded schools in Silicon Valley
And parents are now increasingly sending their children to private schoolsThe percentage of children in CUSD who are attending private schools has been rising dramatically. It has tripled in the past decade.The word is getting out that in spite of their high test scores, the overall educational experience being offered in CUSD is falling below the standards parents expect.And they are voting with their wallets, by spending tens of thousands of dollars every year to send their children to private schools.Home Values Impacted Negatively
This trend of falling confidence in CUSD schools will impact home values negatively since one of the primary reason homes command high value is not as relevant any more.We have already observed this with homes in parts of Sunnyvale School District (Cumberland area) commanding similar prices to homes in Cupertino, for homes of comparable size and age. A decade ago these homes used to about 15-20% less expensive than Cupertino.Preserve Home Values: Restore Vitality in CUSD Schools
In order to ensure that Cupertino homes command a premium value, it is important to preserve the quality of CUSD schools.- We need to roll back school closures
- We need to plan for additional capacity as the thousands of homes in the pipeline are built
Updated 12/25/2022 -
Whose Interests does JR Fruen Represent?
JR Fruen is running again as a candidate for Cupertino City Council. The questions for voters to ask is:
Whose Interests does JR Fruen Represent?
This election is primarily a battle between
- Those who want to preserve their neighborhood, and vote out those who support school closures
- Those who want to serve investor’s interests which include closing schools to free up land for construction.
Who Funds JR’s Campaign?
JR has had close ties with the investor community. In 2018 he ran a PAC which received tens of thousands of dollars from investors and construction related entities:- Vallco owners $29,000.00
- Plumbers / Steamfitters Union $10,250.00
- Electrical Union $10,250.00
- Sheetmetal Union $10,000.00
- Sprinklers Union $10,700.00
His 2022 campaign contributors include:Construction Related Entities:CREPAC (California Real Estate PAC) $2500IFTPE 21 (Worker’s Union PAC) $2000Plumbers Steamfitters & Refrigeration Fitters (Worker’s Union PAC) $1000Real Estate Broker (Milpitas) $1000People who advocated for School Closures:Richard Lowenthal who sponsors and nurtures a lot of the anti-resident candidates ($4900)
Hung Wei the Cupertino Council Member who opposed the City Council writing to CUSD to reconsider school closure ($4900)Rod Sinks who made a U-Turn to not put height limits on Vallco ($1000)Lorien Cunningham the CUSD Trustee who spearheaded the campaign to close schoolsSheila Mohan who is standing for the Cupertino City Council because others asked her to unAva Chiao the CUSD candidate who wants to shut down more schools and construct over the landWho is Endorsing JR’s Campaign?
JR is endorsed by all the three CUSD trustees who voted to close CUSD schools in spite of strong opposition by the residents.
SB10: Scott Wiener endorses JR!
Senator Scott Wiener who authored SB10 which gives cities the choice to allow up to 14 units on a single family lot, has endorsed JR Fruen. JR is much more likely to to support SB10 than resident oriented candidates. Learn more about SB10 here.
What is JR’s Past Record?
As part of the Citizens’s Advisory Committee he was supportive of closing schools (and hence endorsed by all the three CUSD trustees who led the campaign to close schools)He runs an organization called Cupertino For All, which endorsed Prop-16, the proposition which was soundly defeated by the voters of California, and would have led to more discriminatory practices against Asian students.Please do not vote for JR Fruen if you do not want more schools to be shut downPlease do not vote for JR Fruen if you do not want investors to control your city and SB10 construction permittedPlease vote for Govind Tatachari, Steven Scharf & Liang Chao for Cupertino City Council
Please vote for Darcy Paul, Satheesh Madhathil & Jerry Liu for CUSD Board.
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Responsible Governance in Action: Cupertino City Council on SB9
What is SB9?
SB9 is a California state law that allows single family homeowners to split their residential lot into two separate lots. Further it permits the construction of up to two new housing units on each of the separate lots.
SB9 requires all cities to comply with the law.How did the City Respond?
In order to respect the letter and the spirit of the law the City of Cupertino has taken steps to define objective standards to govern lot splitting and the building of new units on them.Interim Urgency Ordinance
The first step was to issue an Interim Urgency Ordinance 21-2235. The city followed the following principles. (Page 4 of Staff Report [2])The key guiding principles in development of the Interim Urgency ordinance were to:
1. Preserve neighborhood character while accommodating increased density;
2. Maintain privacy protection for existing residents;
3. Minimize pedestrian, motor vehicle, and bicyclist conflicts from changes to sidewalk and roadway infrastructure necessary to accommodate increased density; and
4. Protect environmental resources while maintaining the ministerial level of review required by State law.This ordinance was temporary and is going to expire by the end of the year, 2022Public Comments & Feedback
In September 2022, the City conducted multiple sessions to gather community feedback about the interim ordinance and what changes the residents’ preferred before it became final.
One specific area of feedback was on flag lots: many residents expressed that the city permit the creation of flag logs when the existing lot is larger than a typical lot. As a result the City is now proposing a revised draft which clearly defined rules on when the lot split could be used to create flag lots (Pages 6-7 of Staff Report [2])Transparency & Objective Standards
While the city does not control what laws are passed at the state-level, we do have influence on how the laws are interpreted. The objective standards allow for clear guidelines, which reduce uncertainty both for the property developers and the residents.The City also demonstrated how the residents have a say on how the objective standards are set by incorporating the suggestions on flag lots.Thank You, City Council!
Laws which bring objectivity and reduce discretion enable a level playing field, for all developers and property owners. That transparency ensures that special interests are not able to exert influence to get undue favors for themselves, without incorporating the interests of the residents, especially the neighbors of the property under redevelopment.[1] https://www.myhomestead.com/sb9-handbook-for-homeowners -
Sheila Mohan: Sponsored by those who Closed CUSD Schools!
Sheila Mohan is one of the candidates for the Cupertino City Council Elections.Is she the right choice for our city?Supported by those who forced CUSD School Closure
- Councilwomen Hung Wei expressed strong opposition to the City Council writing to CUSD to review their decision to close schools. Hung Wei is actively campaigning for Sheila
- Sheila is endorsed by CUSD board member Sylvia Leong who advocated for school closure.
She has little skin in the game to empathize with the children and parents who are affected by CUSD anti-children decisions.Why is Sheila Running?
Sheila’s last term as a commissioner ended more than 15 years ago (Jan 2007, Library Commission). .
Embezzlement Scam
In 2013-2014 Sheila was employed by the City of Cupertino as Finance Director; this overlapped with the period where there was a major embezzlement scam in the city ($790K). She has conveniently chosen not to mention that even though that was her most recent engagement with the city!And a recent audit of the city’s processes showed big gaps in financial processes something the Finance Director overseas.As residents’ we did wonder why Sheila who had withdrawn her engagement with the city many years ago, chose to run for City Council in 2022?But the mystery seems to have cleared itself!
A recent article Sheila says, that she is running because some people asked her to run!“So, when longterm city leaders asked her to run for office, Mohan polled her family. They were all in. Mohan says her 14 year old granddaughter supported her decision so she could “tell my friends that my grandmother is running for city council!”Sheila is also endorsed by ex-mayors who were on city council when the embezzlement occurred, and who are endorsing the school-closures.Campaign Paid for By…
A Google Search for Sheila Mohan resulted in an advertisement paid for Santa Clara County Supervisor Cindy Chavez’ campaign for Mayor of San Jose!
Her campaign has a lot of construction industry interests, including air-conditioning and electrical companies, plumbing unions, and ex-officials who have been promoting the school closing trustees.
Sheila is also NOT participating int he City of Cupertino’s Voluntary Campaign Expenditure Limit Program.
Questions to Think About?:
Why does her campaign has to be financed by an out of town politician?Why her donors include construction industry and unions?Why she is not participating in the voluntary campaign spending limit program?It is obvious that Sheila is running to rubber-stamp investor interests.Is Sheila the Right Choice?
Sheila’s outreach towards the community has been limited, her website does not have much specifics on policy positions and also hides that she was the Finance Director when the embezzlement was happening.Given what is at stake here, we the residents should not take a chance on a candidate whose campaign is being sponsored by those advocating for CUSD school closure.Please vote for those who have a taken public stand against school closure.
Please vote for Govind Tatachari, Steven Scharf & Liang Chao for Cupertino City Council
Together they can take steps to roll-back the school closure, and also prepare the City to welcome future residents, who will make the many thousands of new residences in the pipeline, their home. -
Responsible Governance in Action: Cupertino City Council on SB9
What is SB9?
SB9 is a California state law that allows single family homeowners to split their residential lot into two separate lots. Further it permits the construction of up to two new housing units on each of the separate lots.
SB9 requires all cities to comply with the law.
How did the City Respond?
In order to respect the letter and the spirit of the law the City of Cupertino has taken steps to define objective standards to govern lot splitting and the building of new units on them.
Interim Urgency Ordinance
The first step was to issue an Interim Urgency Ordinance 21-2235. The city followed the following principles. (Page 4 of Staff Report [2])
The key guiding principles in development of the Interim Urgency ordinance were to:
1. Preserve neighborhood character while accommodating increased density;
2. Maintain privacy protection for existing residents;
3. Minimize pedestrian, motor vehicle, and bicyclist conflicts from changes to sidewalk and roadway infrastructure necessary to accommodate increased density; and
4. Protect environmental resources while maintaining the ministerial level of review required by State law.This ordinance was temporary and is going to expire by the end of the year, 2022
Public Comments & Feedback
In September 2022, the City conducted multiple sessions to gather community feedback about the interim ordinance and what changes the residents’ preferred before it became final.
One specific area of feedback was on flag lots: many residents expressed that the city permit the creation of flag logs when the existing lot is larger than a typical lot. As a result the City is now proposing a revised draft which clearly defined rules on when the lot split could be used to create flag lots (Pages 6-7 of Staff Report [2])
Transparency & Objective Standards
While the city does not control what laws are passed at the state-level, we do have influence on how the laws are interpreted. The objective standards allow for clear guidelines, which reduce uncertainty both for the property developers and the residents.
The City also demonstrated how the residents have a say on how the objective standards are set by incorporating the suggestions on flag lots.
Thank You, City Council!
Laws which bring objectivity and reduce discretion enable a level playing field, for all developers and property owners. That transparency ensures that special interests are not able to exert influence to get undue favors for themselves, without incorporating the interests of the residents, especially the neighbors of the property under redevelopment.
[1] https://www.myhomestead.com/sb9-handbook-for-homeowners
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Why some entities want to shut down Cupertino Schools?
This post will provide background information about why some entities in the community want to close our schools
Real Estate Values
Real estate in CUSD commands premium prices, often 30-50% more than what you could get within 10 miles. Thanks to the excellent schools and the suburban feel, it is also a city where real estate retains values much better during downturns.Land for Future Development
For investors, Cupertino is an ideal place to earn high returns with low risks; land to build is highly coveted by them.CUSD schools are one of the last reserves of open land in and around Cupertino. For investors, being able to build on that land can mean a windfall in profits since real-estate in CUSD commands premium pricing.CUSD Board: Predisposed to Closure
Instead of working for the interests of the children and the community, three members of the CUSD board have been working to close schools.
For the parents involved in the process, it was clear the board was not exploring options to keep schools open; even the charter given to the Citizen Advisory Committee was restricted to determine which schools to close. And even that was stage-managed to close certain schools.And the claim the enrollment is declining because of lack of housing is also not supported by data; the enrollment drop far exceeds the decline in the population of children in CUSD.Some parents did a deep dive into the books, and realized the case for closing schools for financial reasons was marginal at best. In addition, any financial reason to close CUSD schools has completely fallen apart with additional state funding [2].
However, the process has not been rolled back. The three members of the CUSD board who voted to close schools also faced a recall effort[1].
All three school-closure supporting CUSD board members are endorsing JR Fruen [3].
Sheila Mohan has also been endorsed by Sylvia Leong [4].
Overcrowded Cupertino Schools
Closing schools would mean even greater crowding on already overcrowded campuses, children having to travel greater distances leading to reduced use of walk/bike methods, and much greater traffic in the remaining campuses. It would also be disruptive to students who will give up their friends’ & teachers and attend different schools.
Rolling Back School Closure
To roll back the decisions, it’s critical that both the City Council and CUSD Board retain a majority of resident focussed board members who will ensure the schools stay open, and not those who are sponsored by investor interests who want to close schools.
Please vote for those who have taken a public stand against school closure.
Please vote for Govind Tatachari, Steven Scharf & Liang Chao for Cupertino City Council
Please vote for Darcy Paul, Satheesh Madhathil & Jerry Liu for CUSD Board.
Together they can take steps to roll-back the school closure, and also prepare the City to support the future residents who will make the 1000s of new residences in the pipeline their home.
[1] https://www.recallcusdboard.org/
[2] https://edsource.org/2022/20-billion-more-for-schools-community-colleges-under-gov-newsoms-revised-budget/672382
[3] https://www.jr4cupertino.com/endorsements
[4] https://www.sheilamohan.com/meet-sheila
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SB10: 10 (+4) Units on Single Family Lot
What does SB10 Permit?
The SB10 law allows a 10 unit apartment building (upto 14 units including ADUs/JADUs) [1] on a single family lot located within half a mile of transit. Most of Cupertino is within half mile of public transit (VTA) on Stevens Creek Blvd, De Anza Blvd, Foothill Blvd etc.Unlike other laws like SB9 and SB35, SB10 is not mandatory. Local cities can chose to implement it or not.City Council Ordinance
To permit the construction of 14 unit buildings on single family lots, all the City Council needs to do is to pass an ordinance permitting such construction. The ordinance will override any restriction due to voter approved resolutions.SB10 effectively allows the City Council to enable construction of multi-story, 14 unit buildings in a lot currently occupied by a single family home. [2]
Flashback: Height Limits at Vallco
During the Fall of 2017, Cupertino Council Members Darcy Paul and Steven Scharf had proposed that the city enact height limits on buildings in commercial areas. The proposal was welcomed by Rod Sinks.However, when it came to vote two weeks later Rod, Savita & Barry voted against it.You can watch the video below to understand how, in November 2017, the City Council ignored residents’ interest to permit buildings without height limits.That failure to not put any height limits, allowed Vallco investors to propose a design with 26 story high towers in their SB35 proposal. [3]
Why does it Matter: History Can Repeat Itself
Like the Vallco case, an investor friendly council can also relax height and Floor Area Ratio limits in our single family neighborhoods,
That would allow the construction of multi-storied buildings with 14 residential units, on the lot next to your single family home!For investors buying a lot for $2M and building up to 14 units, each selling for $1-$1.5M+ is a windfall.JR Fruen: Whose Interests do you think he will represent?
Endorsed by the Author of SB10Senator Scott Weiner, who gets the highest amount of funding from real estate interests, and is the author or co-author of SB9, SB10 and SB35 bills has endorsed JR Fruen.Note that Cupertino is well ahead of most nearby cities when it comes to housing obligations; something Scott Wiener failed to mention.
Funded by Vallco
J R Fruen, used to run a PAC which received $29,000 [4] from Vallco investors in 2018. He represents the same investor interests’ who influenced the city to not put any reasonable height limit on the Vallco property.
Cupertino For All: Support for SB Laws
JR Fruen is the co-founder of Cupertino for All.
Please do not vote for candidates like JR Fruen, who will be inclined to permit SB10 projects; it can mean the end of Cupertino’s Single Family Home Districts. -
CUSD Enrollment Decline Outpaces Demographics
We are often told that CUSD is closing schools because enrollment is declining. How much of that is true?
Lets dig in to the data:
1. Child Population in CUSD (and neighboring districts)
Source:kidsdata.org
2. School Enrollment in CUSD (and neighboring districts)
Source: kidsdata.org
CUSD Enrollment Drop far Outpaces Demographic
Note that the drop in CUSD enrollment far exceeds the slight drop in the number of school going children. That is because many parents are frustrated with the school board policies, including those which have led to some of the most overcrowded schools in the region.
The percentage of CUSD school children going to private schools has grown 3x over the past 10 years.
We need to fix our public schools, and not make matters worse by closing more of them.
