Jan, unfortunately Santa Clara county seems to be the most restrictive county in the state. They are very strict, at least regarding the cottage food laws.
In short, this cottage food law would not apply to you. Not that it would matter anyway… Santa Clara’s cottage food permit fees are very expensive.
Fortunately, there is an exemption for these types of events in California’s Retail Food Code. On page 90, in Chapter 11, section 114339(b):
“Notwithstanding subdivision (a), nonpotentially hazardous beverages and baked goods may be offered for sale, sold, or given away by a nonprofit charitable organization or by an established club or organization that operates under the authorization of a school or educational facility for fundraising purposes at community events.”
So based on that, you should be able to hold your event without a license. Most states have an exemption like this for these types of events, but your county does have the authority to override that state ruling. Let’s hope that’s not the case.