You should check this out - Environmental Services: Water. Believe it or not, water in sunnyvale comes from 4 different sources. The 2 major ones being S.F.P.U.C. read more
Tap water is safe to drink. Water purveyors are highly regulated. As you mentioned, assuming all the home’s internal plumbing is up to code, there shouldn't be any problem with the water. read more
Water Fluoridation The San Francisco Public Utilities Commission fluoridates the water it provides to the City of Sunnyvale in response to the California's Fluoridated Drinking Water Act, Assembly Bill 733, which became law in 1995 and required water systems with 10,000 or more service connections to fluoridate once funding was available. read more