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2003-11-19
oJa,, SAMIr, ON ORANGE COUNTY SANITATION DISTRICT = 9 9 November 12, 2003 CrMC , N phone: (714)962-2411 fax: (714)962-0356 NOTICE OF MEETING www.ocsd.com mailing address: P.O. Box 8127 Fountain Valley. BOARD OF DIRECTORS 92728-8127 street address: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley,CA 9270E-7018 WEDNESDAY, NOVEMBER 19, 2003 - 7:00 P.M. Member Agencies • Cities DISTRICT'S ADMINISTRATIVE OFFICES Anaheim 10844 Ellis Avenue Brea Fountain Valley, California 92708 Buena Park Cypress Fountain Valley Fullerton Garden Grove Huntington Beach The Regular Meeting of the Board of Directors of the Orange County Sanitation Irvine La Habra District will be held at the above location, time and date. La Palma Los Alamitos Newport Beach / Orange (. Placentia Santa Ana Seal Beach Bc rd Secre ry Stanton Tustin Villa Park Yorba Linda OMTS COMMITTEE - Wednesday, December 3, 2003 at 5:00 p.m. County of Orange PDC COMMITTEE - Thursday, December 4, 2003 at 5:00 p.m. Sanitary Districts Costa Mesa JOINT GROUNDWATER REPLENISHMENT Midway City SYSTEM COOPERATIVE COMMITTEE - Monday, December 8, 2003 at 5:30 p.m. @OCWD Water Districts FAHR COMMITTEE - Wednesday, December 10, 2003 at 5:00 p.m. Irvine Ranch STEERING COMMITTEE - Wednesday, December 17, 2003 at 5:00 p.m. To maintain world-class leadership in wastewater and water resource management. NJ,� BOARD MEETING DATES Board Meeting *December 17, 2003 January 28, 2004 February 25, 2004 March 24, 2004 April 28, 2004 May 26, 2004 June 23, 2004 *July 21, 2004 August 25, 2004 September 22, 2004 October 27, 2004 *November 17, 2004 Weetinas are beina held on the third Wednesdav of the month NO. 3OF3 REPORT OF THE STEERING COMMITTEE WEDNESDAY, NOVEMBER 19, 20039 AT 5 P.M. A 1 ANNOUNCED THAT CASA WILL BE MEETING IN PALM SPRINGS IN JANUARY. u/L. THE DIRECTORS COMPENSATION TASK COMMITTEE REPORTED ON THEIR PROGRESS. 3. BLAKE ANDERSON REPORTED ON STAFFS EVALUATION OF AN UNSOLICITED PROPOSAL REGARDING ALTERNATIVE TREATMENT. HE ALSO UPDATED THE COMMITTEE ON THE PROGRESS BEING MADE IN NEGOTIATIONS WITH SAWPA. A COMPLETED AGREEMENT SHOULD BE READY FOR APPROVAL AT THE DECEMBER BOARD MEETING. r164- 4. BLAKE ALSO REPORTED THAT THE FEDERAL FISH AND WILDLIFE SERVICE IS MOVING VERY SLOWLY ON ITS ENVIRONMENTAL STUDIES RELATED TO THE SANTA ANA RIVER AND THE SARI LINE. THESE STUDIES MUST BE COMPLETED AND APPROVED AS PART OF THE ENVIRONMENTAL IMPACT STATEMENT ON THE SARI LINE IMPROVEMENTS. STAFF WILL BE MONITORING PROGRESS ON THIS ESSENTIAL WORK AND, IF NECESSARY, WILL ENLIST THE HELP OF CONGRESS AND THE ADMINSTRATION TO URGE FISH AND WILDLIFE SERVICE STAFF TO CONSIDER THIS WORK TO BE VERY HIGH PRIORITY. 5. GENERAL COUNSEL REPORTED 6. THE COMMITTEE AND STAFF DISCUSSED A PROPOSED JOINT `WATER CAMPUS' THAT WOULD INCLUDE A SINGLE COMMON ROAD CONNECTING THE OFFICES AND FACILITIES OF THE SANITATION DISTRICT, WATER DISTRICT AND MUNICIPAL WATER DISTRICT FACILITIES TOGETHER. THE CAMPUS WOULD SHARE TWO ENTRANCES: OUR EXISTING ENTRANCE ON ELLIS AND A NEW ENTRANCE ON WARD. STAFF WAS DIRECTED TO BOB GHIRELLI UPDATED THE DIRECTORS ON THE RENEWAL OF THE NPDES OCEAN DISCHARGE PERMIT. ,/8. THE COMMITTEE CONSIDERED THE CONTRACTS FOR OUR LEGISLATIVE CONSULTANTS FOR NEXT YEAR AND RECOMMENDED THAT STAFF ISSUE PURCHASE ORDERS FOR THESE SERVICES. THE STEERING COMMITTEE RECOMMENDS THAT THIS WILL COME BEFORE THE BOARD (TONIGHT UNDER THE STEERING COMMITTEE REPORT?? OR NEXT MONTH?? OR ??). AT THIS TIME I WOULD LIKE A MOTION TO 9. THE AGENDA ITEMS SCHEDULED TO BE REVIEWED BY THE WORKING COMMITTEES AT THE DECEMBER MEETINGS WERE REVIEWED. 10. THE AGENDA FOR TONIGHT'S MEETING WAS REVIEWED. 11 . THE COMMITTEE MET IN CLOSED SESSION TO REVIEW GENERAL COUNSEL'S CONTRACT PROVISIONS. Nb ACTION WAS TAKENpt?L '29 h NO. 2OF3 CHAIR'S REPORT BOARD MEETING OF NOVEMBER 19, 2003 1 . I WANT TO ANNOUNCE THE APPOINTMENT OF ? DIRECTORS BRADY AND DONAHUE TO THE COOPERATIVE PROJECTS COMMITTEE. THEY JOIN STEVE ANDERSON AND JIM FERRYMAN. THE COMMITTEE WILL CONTINUE TO REPORT TO THE FULL BOARD THROUGH THE PDC COMMITTEE. OUR COOPERATIVE PROJECTS PROGRAM PROVIDES 50% MATCHING GRANTS TO OUR MEMBER AGENCIES FOR CERTAIN QUALIFYING SEWER PROJECTS. WE WILL LOOK TO THESE FOUR FOR FUNDING RECOMMENDATIONS UNDER THE CURRENT PROGRAM AND FOR FUTURE RECOMMENDATIONS ANY CHANGES IN THE SCOPE OF THE PROGRAM. I'M CONFIDENT THAT WITH THEIR LEADERSHIP, THE PROGRAM WILL CONTINUE TO BE SUCCESSFUL. 2./ THE WORKING COMMITTEES MEETING SCHEDULE FOR / DECEMBER IS: OMTS COMMITTEE: WEDNESDAY, DECEMBER 3RD PDC COMMITTEE: THURSDAY, DECEMBER 4T" FAHR COMMITTEE: WEDNESDAY, DECEMBER 10T" ALL MEETINGS BEGIN AT 5 P.M. I ALSO WANT TO REMIND YOU THAT THE BOARD WILL MEET ON WEDNESDAY, DECEMBER 17T", ONE WEEK EARLIER THAN USUAL BECAUSE OF THE HOLIDAYS. ALL WORKING COMMITTEES WILL BE DARK IN JAN UARY. 3. ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE: November 19, 2003 TIME: 7:00 P.M. (SIMONIAN) ..................... ANDERSON................... (WILSON) ........................ BANKHEAD................... (SWAN) ............................ BRADY ........................ (YOST) ............................ CAMPBELL ................... (AMBRIZ).......................... CAVECCHE................... - (GARCIA) ......................... CHRISTY..................... (CRANDALL) .................... COLLINS .......................�/ (BOARDMAN) .................. COOK .......................... (BROADWATER).............. DALTON....................... (SHAWVER) .................... DONAHUE.....................�� (WILSON) ........................ DUVALL...................... ✓ (UNDERHILL)................... ECKENRODE.................�/ (SCHAFER) ...................... FERRYMAN................... (POE)................................ JEMPSA...................... ✓ lr���S�l���l�, 5��?l (DAVERT)......................... KAWASHIMA............... (SHEA) ............................. KROM........................ (DOW) ............................. MARSHALL.................. (HERNANDEZ) ................. MC CRACKEN............... / (FRESCHI) ....................... MC GOWAN ................. ✓ (BEAUMAN)...................... MOORE........................ (EPPERSON) ................... NEUGEBAUER.............. (KEENAN) ........................ PIERCY........................ (WEBB) ............................ RIDGEWAY................... J� (SMITH, CHUCK) ............. SILVA........................... (HERMAN)........................ WALKER....................... STAFF: Anderson G Beekman G h i re I l i Kyle Ludwin Miles Ooten Tomko � Streed OTHERS: Woodruff Nixon 09/24/03L� GAwp.dta\admin0S\D IRE CTOR\Directors Roll Call.doc x e STEERING COMMITTEE Meeting Date To Bd.of Dir. 11/19/03 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: Robert P. Ghirelli, Director of Technical Services Originator: Jim Colston, Legal & Regulatory Affairs Liaison SUBJECT: State and Federal Legislative Advocacy GENERAL MANAGER'S RECOMMENDATION (1) Establish a budget of$320,000 for state and federal legislative advocacy; (2) Authorize the General Manager to enter into a Consultant Services Agreements with ENS Resources, Inc. for a contract amount not to exceed $180,000, Mayer, Brown, Rowe & Maw, LLP for a contract amount not to exceed $60,000, and Townsend Public Affairs, Inc. for a contract amount not to exceed $60,000 for a one-year period, effective January 1, 2004 through December 31, 2004, which will provide for professional advocacy services in a form approved by General Counsel; and (3) Each contract is renewable for up to three (3) one-year periods at the discretion of the General Manager. SUMMARY On October 22, 2003, staff was directed by the Steering Committee to continue to pursue state and federal legislative activities for the purpose of obtaining grant money to support District projects and secondary treatment facilities, as well as support District legislative goals. The District presently has three lobbyist firms under contract to accomplish these goals. ENS Resources, Inc., which provides consulting services focused on the acquisition of federal funding for the secondary treatment expansion, through EPA assistance grants; Townsend Public Affairs, Inc., which provides consulting services focused on the acquisition of state funding for District projects (Fats, Oils, and Greases, Santa Ana River Interceptor line, etc.) through Propositions 13, 40, 50 and other grant sources; and Mayer, Brown, Rowe & Maw, LLP, which provides consulting services focused on state legislative initiatives to support District goals, most recently in the areas of secondary treatment, biosolids, and urban runoff. Following a presentation by these District's lobbyists, the Committee informally recommended a contract extension for all three (3) firms. The District's current agreement with these consultants expires on December 31, 2003. The proposed contract will extend the contract for one year. PRIOR COMMITTEE/BOARD ACTIONS November 20, 2002 — Board approved current contract with ENS Resources, Inc., which expires on December 31, 2003. f PROJECT/CONTRACT COST SUMMARY Professional Services ■ ENS Resources, Inc. $180,000 ■ Mayer, Brown, Rowe & Maw, LLP $60,000 ■ Townsend Public Affairs $60,000 OCSD Direct Costs (Estimated) $10,000 *OCSD Travel (Estimated) $10,000 TOTAL Budget $320,000 'Out of Town Travel Subject to District Approval Due to the complexity of this project and the need to pursue funding over multiple funding cycles, this may end up being a multi-year effort of up to five years. This contract request is for one year at a total not to exceed $300,000. If a contract extension is necessary to extend these services beyond 2004, this action will provide for up to three (3) one-year contract extensions at the discretion of the General Manager. BUDGET IMPACT ® This item has been budgeted. (Line item: G.M.'s Budget) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION At the October 22, 2003 Steering Committee meeting and the subsequent meeting of the Board of Directors, the four members of the District's lobbying team provided an update on this year's activities and a strategy for proposed future action. The team members include Eric Sapirstein (ENS Resources, Inc.), Larry Kast (Freshman Kast— subcontractor to ENS Resources, Inc.), Christopher Townsend (Townsend Public Affairs, Inc.) and Scott Baugh (Mayer Brown Rowe & Maw, LLP). ALTERNATIVES These contracts are not necessary if the Board of Directors decides it does not want to utilize consultants to pursue state and federal legislative activities for the purpose of obtaining grant money to support District projects and secondary treatment facilities, and to support District legislative goals. CEQA FINDINGS N/A x a ATTACHMENTS N/A 400NS v S A N I Tq Troy fff W � o 9 1 c � -0 ti O d crH� NE ENJQ November 19, 2003 MEMORANDUM TO: Board of Directors FROM: Bob Ooten Director of Operations & Maintenance SUBJECT: Level of Secondary Treatment and Disinfection Progress Data on the level of treatment progress and its impacts on the final effluent are attached. Historical trends for final effluent percent of secondary treatment for biochemical oxygen demand (BOD) and total suspended solids (TSS) are shown. In addition, current monthly data for BOD, TSS and disinfection effectiveness are shown on a schematic of the treatment system. All operationally available secondary treatment facilities are online. Staff continues to make in-plant adjustments and improvements to existing processes to advance toward secondary treatment standards. The final effluent is a blend of 64 percent secondary treatment and 36 percent primary treatment, which is at our target of 64 percent. During the 12 months prior to the Board's decision of July 17, 2002, the District's final effluent quality averaged 51 ppm TSS and 72 ppm BOD. During October 2003, the final effluent averaged 32 ppm TSS and 59 ppm BOD versus the secondary treatment goal of 30/30 ppm TSS and BOD. Our final effluent continues to be successfully disinfected using the temporary facility disinfection system, which has now been in operation since August 2002. The disinfection system is significantly reducing the total coliform, fecal coliform, enterococci bacteria and viruses. October 2003 results for total coliform averaged 8,300 MPN/100 mL. There was one daily total coliform value that was over the daily operational target of 180,000 MPN/100 mL total coliform at 200,000. When staff investigated the incident, there were no mechanical problems and the chlorine residual was at the target value. OCSD 0 P.O.Box 8127 0 Fountain Valley,CA 92728-8127 0 (714)962-2411 Page 2 November 19, 2003 The final effluent had a maximum 0.22 ppm chlorine residual averaged over eight hours on one day, which is well below the 1.45 ppm daily maximum compliance limit over 8 sample periods. Additional disinfection data is reported on the Web @ www.ocsd.com. The upgraded bleach/dechlorination (dechlor) facilities were approved by the Board of Directors in January 2003 and construction will be completed this winter. Commissioning tests of the new chlorination and dechlorination facilities are in progress at this time. These upgraded bleach and dechlorination facilities will be used until we determine the long-term technology that will be used for disinfection and to design and construct the new facilities. RJO:lj gAwp.dta1om18101finalVjolboard of directorslboard handouts11119031111903 board packet cover letter.doc Attachments (2) AN o° Orange County Sanitation District a r9 Operational Treatment Levels Revision 11/19/03 NE Final Effluent Monthly Data 75% Percent Secondary Treatment 72% Monthly Average 70% -67%-- 68%n-..69' 8nl .... ------ ono------------------------------------------------------ 66% 66% 65% ............................................................................ 30/6........ o •--------......... 64 ° Winter 2002 Goat=64% ° 60% ............................. ..-.----- --......-- -- - - ---- ..................................... 55% ---------------•----....-----..........------------------------------•---------------------------•-•---- ............. 50% ------------•............................................................. —........................................ 45% .............................................................................I.............................. ---------- 40% Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2002 2D03 Total Suspended Solids (TSS) Biochemical Oxygen Demand (BOD) ppm in Final Effluent ppm in Final Effluent 100 100 1998 Permit Limit=100pPm.90 so ---•-•--- . 80 ------------------------------------- 80 ------------------------------------------- ............................................................. 70 .............................,----------------------------------------------------------------------------------- 70 ------------------- -------------.- 1998 Permit Limit=60 ppm 60 s3 59 62 60 60 57 59 so ------- 50 .............................................................................................. .......... 40 36------ ---.-- 36•----...37--------3 .......38..................34------- ------ - 40 --.....................-----•----- �-..---'33 34 32 3g-------30 32 .................................•----------...............-------•--- 30 30 Secondary Standard Goal=30 ppm Secondary Standard Goal=30 ppm 20 ----•---••------------ --•----------------- •--------------------•-.------ 20 -------••---------------------------------------------- 10 ---....----...............---------••------------------------------ ........................ 0 1 0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 20D2 2003 2002 2003 A l Oraiige County Sanitation District --� Operational Treatment Levels Fiscal Year 2001 -02 Ending June 2002 Progress to Secondary Standards (Prior to July 17, 2002 Board decision) Month: October 2003 1 47% 36% Advanced Advanced Primary Ocean Pipeline Primary Ocean Pipeline Wale IFJD.cDisinfection& Mixedhlorination 53% 64% oM+n.Aug.iz,2ooz Secondary Final Effluent: Secondary BOD = 72 ppm TSS = 51 ppm Bacteria Reduction: 99.999+% Goal: 99.3% Reduction Ocean Discharge Chlorine Limit Chlorine Level Permit Limit: Daily Maximum 1.45 ppm Daily Maximum: 0.22 ppm BOD = 100 ppm (Average of 8 Samples) TSS = 60 ppm Final Effluent: Final Effluent Goal: BOD = 59 ppm BOD = 30 ppm TSS = 32 ppm TSS = 30 ppm 4 v MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, November 12, 2003, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on November 12, 2003, at 5:00 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Blake Anderson, General Manager Brian Brady, Chair Gary Streed, Director of Finance/Treasurer Roy Moore, Vice Chair Carol Beekman, Communications Services Alberta Christy Manager Bill Dalton Mike White, Controller Mike Duvall Lisa Arosteguy Joy Neugebauer Jan Collins James W. Silva Penny Kyle, Committee Secretary Shirley McCracken, Board Chair OTHERS PRESENT: Directors Absent: Thomas L. Woodruff, General Counsel Steve Anderson, Vice Board Chair Steve Filarsky, Special Labor Counsel Mike Moreland Nipa Shah Toby Weissert Ryal Wheeler (2) APPOINTMENT OF CHAIR PRO TEM Vice Chair Roy Moore opened and conducted the meeting until Chair Brady arrived. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Vice Chair Roy Moore reported that Lisa Tomko, Director of Human Resources, was attending a conference that week and would not be able to attend the FAHR Committee meeting. Minutes of the Finance, Administration and Human Resources Committee Meeting o Page 2 November 12, 2003 (5) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson announced that the third Orange County Leadership Symposium would be held January 9-11, 2004, in Lake Arrowhead. Registration materials would be provided at the November 19'h Board meeting and he encouraged all Directors to attend. (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Gary Streed, Director of Finance/Treasurer, reported that the report on how to calculate connection fees was expected to be finalized for the December 101h committee meeting. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources was not present. (8) REPORT OF COMMUNICATIONS SERVICES MANAGER The Communications Services Manager had no report. (9) REPORT OF GENERAL COUNSEL General Counsel had no report. (10) CONSENT CALENDAR ITEMS a. The Chair ordered that the October 8, 2003 minutes for the Finance, Administration and Human Resources Committee meeting be deemed approved, as mailed. b. FAHR03-87 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of October 2003. C. FAHR03-88 Receive and file Certificate of Participation (COP) Monthly Report. d. FAHR03-89 Receive and file Employment Status Report as of October 28, 2003. e. FAHR03-90 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR03-91 Recommend to the Board of Directors to receive and file the Quarterly Investment Management Program Report for the period July 1, 2003 through September 30, 2003. 'r Minutes of the Finance, Administration and Human Resources Committee Meeting b Page 3 November 12, 2003 g. FAHR03-92 Recommend to the Board of Directors to receive and file the 2003-04 First Quarter Financial Report for the period ending September 30, 2003. h. FAHR03-93 Recommend to the Board of Directors to approve SAFETY-POL 113 - Exposure Control Plan for Bloodbome Pathogens Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. i. FAHR03-94 Recommend to the Board of Directors to adopt Resolution No. OCSD 03-_, Authorizing the Director of Human Resources to Appoint or Employ Agents or Advisors to Implement and Administer District's Deferred Compensation Plan Loan Program. MOTION: It was moved, seconded and duly carried to approve the recommended actions for items specified as 10(a) through (i) under Consent Calendar. END OF CONSENT CALENDAR (11) ACTION ITEMS a. FAHR03-95 Recommend to the Board of Directors to adopt Resolution No. OCSD 03- _, Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: 1. Create the Automotive/Heavy Equipment Assistant classification at pay range 53 ($16.772 - $20.965); and, 2. Delete the Lead Collection Facilities Worker classification at pay range 66 ($23.123 -$28.904) Jan Collins, Senior Human Resources Analyst, gave a brief report outlining the need for adjustments to the classification structure, which creates one new classification and deletes one classification. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR03-96 Recommend to the Board of Directors to approve the reclassifications of eight District employees, the upgrading of one vacant position and an equity adjustment for one employee. Jan Collins, Human Resources Analyst, gave a brief report on the recommended reclassifications. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 4 November 12, 2003 C. FAHR03-97 Recommend to the Board of Directors to receive, file and approve the District's Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2003, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. Mike White, Controller, provided a brief review on the issued CAFR. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. d. FAHR03-98 Recommend to the Board of Directors to authorize staff to invest the Debt Service Reserve Fund for the 2003 Certificates of Participation through a competitive selection process to be conducted by the District's Financial Advisor, Public Resources Advisory Group, in accordance with the District's Investment Policy. Gary Streed, Director of Finance/Treasurer, reported that the proposed investment of the Debt Service Reserve Fund (DSRF) involves terms from five years to 30 years. He recommended a Forward Delivery Agreement for the investment, to be conducted by Public Resources Advisory Group, the District's Financial Advisor. This investment is expected to take place within the next six months. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. e. FAHR03-99 Recommend to the Board of Directors to: 1)Approve two additional vanpool routes for the Rideshare Program utilizing existing vans; and, 2)Approve implementation of rideshare incentives in an effort to comply with SCAQMD Rule 2202 and meet established Average Vehicle Ridership (AVR) targeted goal, at the Board's discretion and subject to change by the Board at any time. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. (12) INFORMATIONAL PRESENTATIONS a. FAHR03-100 Collecting Capital Facilities Capacity Charges as an Assessment on the Property Tax Bill Gary Streed, Director of Finance, reported that procedures have been developed for the recent policy approved by the Board of Directors allowing property owners currently on septic tanks who wish to connect to the sewer system to make annual payments for the connection fees over Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 November 12, 2003 a five year period, collected on the property tax bill. He noted that approval by the Board of Directors for each parcel will be required in order to collect the payment as a separate line item on the property tax bill. (13) CLOSED SESSION The Committee convened in Closed Session at 5:39 p.m. pursuant to Government Code Section 54957.6 to discuss and consider Agenda Item Nos. 13(a) (1) and (2). Confidential Minutes of the Closed Session held by the Finance, Administration and Human Resources Committee have been prepared in accordance with California Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the actions taken will be publicly reported at the time the approved action becomes final re Agenda Items Nos. 13(a)(1) and (2). RECONVENE IN REGULAR SESSION: At 5:49 p.m., the Committee reconvened in regular session. (14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (15) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (16) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for December 10, 2003 at 5 p.m. (17) ADJOURNMENT The Chair declared the meeting adjoumed at 5:49 p.m. Submitted by. n Penny M. Kyle FAHR Committee Sectary G:\wp.dta\agenda\FAHR\FAHR2003\1103\111203 FAHR Minutes.doc ORANGE COUNTY -1 �f • f SYMPOSIUM Fri'ca, 1 91 ' \-t,hw nJan'u auay,, 12004 UCLA Conference Center in Lake Arrowhead The 2004 symposium Orange County leadershipSym p osium Facilitator The OCLS Advisory Team ... Blake Anderson—General Manager, Eric Orange County Sanitation District Janet Huston—Director,League of California Cities,Orange County Division Alcnbaugh Wally Kruetzen—Executive Director, Transportation Corridor Agencies Art Leahy—Chief Executive Officer, Orange County Transportation Authority Dave Morgan—Orange County City Managers'Association PhGDO Tim O'Donnell—Orange County City Managers'Association Chip Prather—Chief, The OCLS Advisory Team welcomes Dr. Eric Orange County Fire Authority Jim Ruth—County Executive Officer, Allenbaugh as this year's new symposium facilita- County of Orange tor. His work in the public and private sectors as a Dana M. Smith—Executive Officer, leadership consultant and executive coach has Orange County Local Agency spanned nearly twenty-five years.He has presented Formation Commission to more than 1500 audiences and has been a guest on over 350 television and radio ...invites you, the elected regional leadership of programs focusing on succeeding Orange County, to a pioneering dialogue on in business and in life. leadership. Eric received his doctoral degree The seeds for what would become the OCLS Advi- from the University of Oregon, sory Team were sewn in 2000, when the executive where he immersed himself in a directors of seven Orange County regional agen- program emphasizing leadership cies began meeting on a regular basis to discuss and organizational behavior. He their common challenges. They soon envisioned has since built a solid career as a creating a forum that would foster the development leadership and organizational de- of working relationships between leaders who are velopment consultant for corpo- responsible for overlapping regional issues. That rate,health care,and governmen- vision would become the Orange County Leader- tal organizations. ship Symposium (OCLS). His best selling book,WAKE-UP CALLS:You Don't Over sixty elected officials attended the first annual Have to Sleepwalk Through Your Life, Love, or OCLS in January 2002.The second annual event in Career,is published in five languages.His newest January 2003 drew more than sixty participants,over book,DELIBERATE SUCCESS:RealizeYourVision half of whom attended OCLS I. with Purpose. Passion, and Performance, is al- ready available in three languages.As a former hos- OCLS has created a powerful momentum.Please join pital administrator, Dr.Allenbaugh brings a prag- us for OCLS III in January 2004! matic focus to enhancing leadership effectiveness. REGISTRATION FORM ORANGE COUNTY PARTICIPANT INFORMATION: Name: Title: SYMPOSIUM Organizational Affiliations: (check all that apply) ❑ County of Orange ❑ Orange County Fire Authority REGISTRATION INFO: ❑ Orange County Sanitation District ❑ Orange County LAFCO HOW TO REGISTER ❑ Orange County Transportation Authority ❑ League of Cities-OC If you are affiliated with one of the ❑ Orange County Transporation Corridor Agencies sponsoring agencies your investment ❑ Orange County City Managers'Association in this leadership experience is onl} $375,including symposium materials, ❑ City of lodging, and meals. Provided there is ❑ Other: space available, the .Advisory Team welcomes participants from outside of the group of sponsoring agencies. Address: The registration fee for such regis- trants is$525. City: Zip: We must receive your regis- Phone: Fax: tration by Fridaj; December 19th for you to be Included in the event. Please complete this Email address: form in its entirety and mail it to the address specified. Your agencies will SPECIAL REQUESTS: be appropriately invoiced for your registration fee. Preferred housemate: Due to program format and capacit`• limits at the conference center, sI Requests (i.e., dietary restrictions, special accommodations, etc.): posium participants are discouraged from bringing guests. TIME SCHEDULE&ATTIRE The symposium will begin promptly at 2:30 p.m. on Friday,January 9th. Please arrive around 1:30 p.m. to Please note, allguerl mo»1s am non-swokiitg. allow time to register and receive symposium materials. Also, an early arrival will enable participants to Mail completed form to: avoid the brunt of Friday afternoon traffic from Orange County to the Inland Empire.Please eat lunch prior ORANGE COUNTY LEADERSHIP SYMPOSIUM to your arrival, as dinner will not be C/o League of California Cities-OC Division served until 6:30 p.m. 600 W Santa Ana Blvd., Suite 214 Participants can expect to immerse Santa Ana, CA 92701-4542 themselves in conference sessions all FAX: (714) 972-1816 day Saturday. The symposium will adjourn around noon on Sunday. Please direct any questions and requests for it formation to We recommend that you dress in Heather Dion at (714) 972-0077 or Danielle Ball at (714) 834-6212. casual attire and bring a sweater due to possible fluctuations in room tem- led by Dr. Allenbaugh. Dr. Allenbaugh sought the The aalIcngc: participants'unique insights and perspectives and found some surprising continuity in the responses he received. P rob1cms Focus group participants highlighted the many ways 3- in which leaders come together in the spirit of col- laboration and commonality to address regional is- sues. They were quick to point out that Orange i�es t 1 o n sFacing County is home to many innovative programs and organizations. ���n1 1��� Focus group participants overwhelmingly agreed that elected officials want to give back to the com- munity,that they sought public office to create some- thing better for Orange County. In spite of this The long-term challenges facing Orange County's shared desire,participants expressed concern that leadership will compound as the county's popula- the county has many political entities but no shared tion increases by more than 700,000 people in the vision."We need a clear mission and vision for Or- next two decades,the pressures on the county's in- ange County," they said. Additionally, participants frastructure reaching critical proportions. At the worry that term limits contribute to a lack of conti- same time, the long-term goals envisioned for the nuity and loss of developed political talent,further Orange County Leadership Symposium become diluting one's ability to enact positive change. even more crucial -- to inspire a renewed sense of stewardship over Orange County, to encourage more peer-to-peer communication and interaction "-1 t the first nro stvuln,sittu►s, I learned what it takes to among the county's leaders, to infuse creative and Mur•rirr and excel as a leader in todaCs it-orld long-term vision into the OC leadership dialogue, %nt ►tern•excited ahout OCLS I//and and to leave a positive legacy to the future Orange IL•arning better•partnering methods x•ith rrri•colleagues County. so that tine might better serre Ormtge C•ounl►:" --Bc�� Perry. Now,more than at any time in Orange County's his- Mavor, Cih•.Perea tory,leaders need an open forum to develop an un- derstanding of the risks and ever-changing de- mands of leadership and to tap into a collective ca- Dr. Allenbaugh is working in close collaboration pacity to enact positive change for the future of with the Advisory Team to develop a program based Orange County. The problems and opportunities on the feedback compiled from the focus group ses- resultant from the urbanization of Orange County sion around one central theme: will require all of the county's leaders to work collaboratively toward shared solutions. Band-aid Expanding Your Leadership Influence fixes and short-term adjustments are inadequate to Strategies&Tools to Shape Your Future address the growing demands. Dr. Allenbaugh promises a fun and inclusive pro- OC ELECTEDS PARTICIPATING IN THE DESIGN gram providing pragmatic and experiential learn- OF OCLS III ing opportunities aimed at helping you, Orange Based on feedback from last year's symposium,the County leaders,build a network for addressing com- OCLS Advisory Team coordinated a series of ad- mon issues. vanced focus group sessions with this year's facili- tator,Dr.Eric Allenbaugh,inviting participants from Change is a choice.Orange County leaders are chal- OCLS I & II to engage themselves in the develop- lenged to move from"what is"to"what can be."By ment and design of OCLS III. embracing the spirit of partnership embodied by OCLS, we can make an even more significant and On October 6th, over twenty past symposium par- positive difference in shaping the Orange County ticipants gathered in one of four small focus groups of the future.Make your commitment today! 'I 7he U CIA Registration acilit0 y n ormation Nestled among the trees up 5,000 feet in the San Ber- The invitation to attend this symposium has been ex- nardino Forest,the UCLA Conference Center is located tended to the 125 members that make up the follow- on the north shore of Lake Arrowhead.The conference ing sponsoring boards and commissions:the Orange facility is made available to government and non-profit County Transportation Authority, the Orange County organizations at a substantially reduced rate. All Fire Authority,the Orange County Sanitation District, amenities are included in the registration fee,includ- the Orange County Transportation Corridor Agencies, ing participation in the symposium, meals,and lodg- the County of Orange,the Orange County Water Dis- ing. trict.the Orange County Local Agency Formation Com- mission,and the Orange County Division of the League Symposium participants will be housed in two bed- of California Cities. Members of the Orange County room,two bathroom condolets.You'll be given an op- City Managers' Association have been extended an portunity to select your own housemate when complet- invitation, as well. ing the registration form.We will do our best to ac- commodate your requests. Recognizing the fiscal challenges that municipalities will face in the coming year,the Advisory Team did its You can get more information about the UCLA Con- utmost to reduce the costs of OCLS III.As a result,the ference Center,including detailed driving directions, team was able to par down the overall expenses re- by visiting the conference center's Website at lated to the conference and is passing the savings on www.uclaconferencecenter.com. to the symposium attendees.For registrants from spon- soring agencies (listed above), the registration fee is NOTE: The Advisory $375 -- that's a savings of$150 over last year's regis- Team is closely monitor- tration fee.This fee is fully inclusive of all symposium ing the situation with the materials,lodging,and meals.Provided there is space southern California wild- available, the Advisory Team welcomes participants fires in the Lake Arrow- from outside of the group of sponsoring agencies.The head area. If a change of registration fee for such registrants is$525. venue becomes neces- sary, the Advisory Team �I I The deadline for registration is December 19th.De- will provide you updated tailed registration information is outlined on the en- logistical information as it closed registration form,including the answers to fre- becomes available. ;, .� quently asked questions.Please complete the form and mail it per the instructions provided. ORRNOE COUNTY LEADERSHIP SxmPostVM r� c/o Orange County LAFCO \ 12 Civic Center Plaza,Room 235 l ( Santa Ana,CA 92701 SIGN-IN SHEET ORANGE COUNTY SANITATION DISTRICT / �1 ? BOARD MEETING NAME ORGANIZATION/FIRM (please print) leaseprint) C 15 H:\WP.DTA\ADMIN\BS\FORMS\SIGN-IN FORKDOC Orange County Sanitation District MINUTES BOARD MEETING OCTOBER 22, 2003 .�•� s�aIr,�r�o Oda 0000 ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 i Minutes for Board Meeting Page 2 10/22/03 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on October 22, 2003, at 7:00 p.m., in the District's Administrative Offices. Following the Pledge of Allegiance and invocation the roll was called and the Secretary reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Shirley McCracken, Chair Bob Hernandez X Steve Anderson, Vice Chair Steve Simonian X Don Bankhead Leland Wilson X Brian Brady Peer A. Swan X Patricia Campbell Paul Yost A Carolyn Cavecche Steve Ambriz X Alberta Christy Mike Garcia X John Collins Larry Crandall X Debbie Cook Connie Boardman X Bill Dalton Bruce Broadwater X Brian Donahue David Shawver X Michael Duvall Keri Lynn Wilson X Norman Z. Eckenrode Constance Underhill X James M. Ferryman Arlene Schafer X Alice B. Jempsa Marilynn M. Poe X Tony Kawashima Doug Davert X Beth Krom Christina Shea X Patsy Marshall Jim Dow A Robert McGowan Richard A. Freschi X Roy Moore John Beauman X Joy Neugebauer Grace Epperson X Anna L. Piercy Tim Keenan X Tod Ridgeway Don Webb X Jim Silva Chuck Smith Paul Walker X Larry Herman STAFF MEMBERS PRESENT: Blake P. Anderson, General Manager; Penny Kyle, Board Secretary; Carol Beekman; Bob Ghirelli; Dave Ludwin; Patrick Miles; Bob Ooten; Gary Streed; Lisa Tomko OTHERS PRESENT: Thomas F. Nixon, Assistant General Counsel; Don Hughes; Scott Baugh; Larry Kast; Eric Saperstein; Chris Townsend; Randy Fuhrman; Linda Martin; Ken Ovrey; Paula Zeller; Greg Woodside; Bill Hunter Minutes for Board Meeting Page 3 10/22/03 PUBLIC COMMENTS There were none. REPORT OF THE CHAIR Chair McCracken welcomed legislative consultants Eric Saperstein, Lary Kast, Scott Baugh and Chris Townsend, who attended the Steering Committee Meeting earlier that evening. The meeting schedule for November was reviewed, and it was noted the District's administrative office would be closed on Tuesday, November 11, in observance of Veteran's Day. It was reported that the Board Meetings in November and December would be held on the third Wednesdays of the month due to the holidays. REPORT OF THE GENERAL MANAGER Blake Anderson, General Manager, announced there was one seat available for the 2004 Economic Forecast Conference for Orange County that is being held on October 28. He reported that a meeting had been held with SAWPA to negotiate an agreement based on the term sheet that was approved by the Board. Another meeting was scheduled and he expects the agreement to be ready for approval at the November 19, 2003 Board meeting. REPORT OF THE GENERAL COUNSEL Assistant General Counsel Tom Nixon reported that arguments were held today on the Crow- Winthrop litigation, which challenged the District's capital facilities capacity charges and connection fees. The Court of Appeal has 90 days to issue its decision. APPROVAL OF MINUTES The Chair ordered that the minutes of the regular meeting held September 24, 2003, be deemed approved, as written. RATIFICATION OF PAYMENT OF CLAIMS MOVED, SECONDED AND DULY CARRIED: Ratify payment of claims set forth on exhibits"A" and "B", attached hereto and made a part of these minutes. ALL DISTRICTS 09/15/03 09/30/03 Totals $7,586.575.45 $10,208,711.70 1 Minutes for Board Meeting Page 4 10/22/03 CONSENT CALENDAR 9. a. MOVED, SECONDED AND DULY CARRIED: (1)Approve Change Order No. 1 to Purchase Order No. 100536-013, issued to OCB Reprographics for Specification No. 9900-05, for an additional amount of$125,000, for a total amount not to exceed $225,000, providing for additional copying services; and, (2) Provide an additional $125,000 for all remaining renewal periods for Specification No. 9900-05, for a total annual amount not to exceed $225,000. b. MOVED, SECONDED AND DULY CARRIED: (1) Receive and file petitions from Paul Andrews and Janet Harris requesting annexation of .62 acres to Orange County Sanitation District (OCSD) in the vicinity of Orange Park Blvd. and Clark Avenue in an unincorporated area of Orange County; and, (2) Adopt Resolution No. OCSD 03-22, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-32— Andrews/Harris Annexation). C. MOVED, SECONDED AND DULY CARRIED: (1) Receive and file petition from Dirk Bedford requesting annexation of.64 acres to Orange County Sanitation District at 251 Country Hill Road, in an incorporated area of Orange County; and (2)Adopt Resolution No. OCSD 03-23, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-34— Bedford Annexation). d. MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager to execute Quitclaim Deeds to Moussa Essayli and Ward Dixon III and Miriam Dixon for two parcels in the City of Cypress in connection with Los Alamitos Sub- trunk Sewer, Contract No. 3-8, in a form approved by General Counsel. NON-CONSENT CALENDAR 11. DRAFT STEERING COMMITTEE MINUTES: A verbal report was presented by Director McCracken, Chair of the Steering Committee, re the October 22, 2003 meeting. Consent Calendar Chair McCracken reported the sub-committee that is reviewing policies and procedures for meeting expenses eligibility and Directors' compensation reported on their progress. Staff also provided an update on the biosolids program and associated costs. The Steering Committee also had an extensive discussion of the 2003 and 2004 legislative advocacy program at the state and federal levels by the four legislative advocates that were hired to assist the District. Minutes for Board Meeting Page 5 10/22/03 The federal legislative consultants, Eric Saperstein and Larry Kast, provided the Board with an update on their activities for the past year, and their plans for 2004. Their focus was to obtain federal funding for the District's secondary treatment expansion through grants from the EPA. They are continuing their efforts to get this project as a line item in the EPA's budget. Directors Silva and Ridgeway recently met with the delegation in Washington, DC, accompanied by Bob Ghirelli and the consultants, and were successful in getting the delegation to fully support the District's efforts. Scott Baugh reported he is continuing his efforts to amend the state constitution to allow the assessing of fees to treat urban runoff without a popular vote. He is also working with the District on a state-wide biosolids policy. Mr. Baugh also discussed budget impacts and how the governor-elect may address these problems. There may be some special sessions of the assembly in the fall to deal with the budget issues. Christopher Townsend reported on his firm's efforts to obtain state funding for District projects including fats, oil and grease, the Santa Ana River Interceptor, and the corrosion management program. The Chair ordered the Steering Committee Minutes for the meeting held on September 24, 2003 to be filed. Non-Consent Calendar No items considered 12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on October 1, 2003 to be filed. Director Kawashima abstained. Non-Consent Calendar No items considered. 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Planning, Design and Construction Committee Minutes for the adjourned meeting held on September 18, 2003, and the regular meeting held on October 2, 2003, to be filed. Minutes for Board Meeting Page 6 + 10/22/03 b. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 9 to Primary Clarifiers 16-31 and Related Facilities, Job No. 131-37, with Margate Construction, authorizing an addition of$187,452, increasing the total contract amount to $71,142,093. C. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 3 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an additional of$44,293 and a time extension of one calendar day, increasing the total contract amount to $30,305,227. d. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 2 for Engineering Trailer Complex at Plant No. 1, Job No. J-90, with Oved Dagan Construction, authorizing an addition of$68,331, increasing the total contract amount to $1,797,149; and, (2)Accept Job No. J-90 as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. e. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 2 to the Professional Services Agreement with Black & Veatch Corporation for additional construction support services for Short Term Ocean Outfall Bacteria Reduction, Job No. J-87, for an additional amount of$54,447, increasing the total amount not to exceed $909,128. f. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 3 for Area Classification Study Implementation Plan, Plant Nos. 1 & 2, Job No. J-35-2, with J.F. Shea Construction, Inc., authorizing an addition of$269,345, increasing the total contract amount to $14,534,262. g. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 1 to Drain System for North Pacific Coast Highway Force Main, Contract No. 5-56, with Ken Thompson, Inc., authorizing an addition of$124,300 and a time extension of 17 calendar days, increasing the total contract amount to $257,350; and, (2) Accept Contract No. 5-56 as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. h. MOVED, SECONDED AND DULY CARRIED: Approve Professional Services Agreement with Camp, Dresser& McKee providing for engineering services for Rehabilitation of Odor Control Facilities, Job No. J-71-8, for an amount not to exceed $3,197,522. i. MOVED, SECONDED AND DULY CARRIED: (1)Approve a budget increase for an additional $415,040 for Gisler-Redhill Trunk Improvements Reach "A", Contract No. 7-36, for a total of$7,066,698; an additional $670,806 for Orange Trunk Improvements, Contract No. 7-39, for a total of$5,297,929; and an Minutes for Board Meeting Page 7 10/22/03 additional $3,076,488 for Gisler-Redhill/North Trunk Improvements, Contract No. 7-41, for a total of$14,987,780; and, (2)Approve Addendum No. 1 to the Professional Services Agreement with AKM Consulting Engineers, providing for additional engineering services for Gisler- Redhill Trunk Improvements Reach"A", Contract No. 7-36; Orange Trunk Improvements, Contract No. 7-39; and Gisler-Redhill/North Trunk Improvements, Contract No. 7-41, for an additional amount of$58,320, increasing the total amount not to exceed $870,278. PDC Non-Consent Calendar No items considered. Directors questioned why Item No. 10(b), PDC03-77, was not included for approval by the Board of Directors, as recommended by the PDC Committee. Chair Donahue explained that after staff re-evaluated the schedule and time constraints, it was determined the urgency of the item was removed and there was time for this item to be considered through the usual process. The General Manager assured Directors in the future if staff needed to pull an item from going forward to the full Board after approval by a Committee, that those Committee members would be informed immediately. 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on October 8, 2003 to be filed. Director Christy abstained. b. MOVED, SECONDED AND DULY CARRIED: Receive and file Treasurer's Report for the month of September 2003. Director Christy abstained. C. MOVED, SECONDED AND DULY CARRIED: Approve SAFETY-POL-114 Hazardous Waste Management Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program. d. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 03-24, Amending Resolution No. OCSD 98-33, Amending Human Resources Policies and Procedures Manual. e. MOVED, SECONDED AND DULY CARRIED: Receive and file Communications Services Strategic Plan FY 2003-04. Minutes for Board Meeting ' Page 8 10/22/03 f. MOVED, SECONDED AND DULY CARRIED: Approve an Agreement with the Santa Ana Watershed Project Authority (SAWPA) to establish the purchase price for, and the purchase of 2.0 mgd Wastewater Treatment and Disposal Capacity Right for Desalter Brine for a total amount of$5,252,015.26, in a form approved by General Counsel. Non-Consent Calendar No items considered. 15. JOINT GROUNDWATER REPLENISHMENT SYSTEM COOPERATIVE COMMITTEE (JCC) Director Norm Eckenrode reported on items considered and approved at the September 29, 2003 meeting. JCC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Joint Groundwater Replenishment System Cooperative Committee Minutes for the meetings held on September 8, 2003 and September 29, 2003, to be filed. b. MOVED, SECONDED AND DULY CARRIED: Approve an agreement between Orange County Water District and Porter Novelli, providing for one year of additional services for the public information and outreach program for the Groundwater Replenishment System, Job No. J-36, for an amount not to exceed $900,000, to be equally cost shared with the Orange County Water District. Director Kawashima abstained. c, MOVED, SECONDED AND DULY CARRIED: (1) Approve Amendment No. 1 to the Professional Services Agreement with Montgomery Watson Harza, providing for additional construction management services for the Groundwater Replenishment System, Job No. J-36, for an additional amount of$1,423,992, increasing the total amount not to exceed $12,367,030, to be equally shared with the Orange County Water District; and, (2) Approve Amendment No. 2 to the Professional Services Agreement with Montgomery Watson Harza, providing for a cost-of-living adjustment per their contract for the Groundwater Replenishment System, Job No. J-36, for an additional amount of$523,536, increasing the total amount not to exceed $12,890,566, to be equally cost shared with the Orange County Water District. Director Anderson abstained. Minutes for Board Meeting Page 9 10/22/03 d. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 10 to the Professional Services Agreement with Camp Dresser & McKee, Inc., providing for additional design services for the Groundwater Replenishment System, Job No. J-36, for an additional amount of$305,550, increasing the total amount not to exceed $33,587,086, to be equally cost shared with the Orange County Water District. Director Anderson abstained. JCC Non-Consent Calendar No items were considered. 16. There was no closed session. ADJOURNMENT: The Chair declared the meeting adjourned at 7:48 p.m. Secretary of t e Board o irectors of Orange County Sanitaf District G:Iwp.dtaladmin\BS\Minutes1102203 draft minutes.doc Claims Paid From 09/01/03 to 09/15103 Warrant No. Vendor Amount Description Accounts Payable-Warrants 55548 County of Orange-Auditor Controller 67,559.80 2003-04 Property Attributes 55549 Orange County Sanitation District 567.336.09 Payroll EFT Reimbursement 55550 Southern California Edison 96,263.53 Power 55551 Airgas Safety 2,105.33 Safety Supplies 55552 ACGIH,Inc. 228.90 Publication 55553 American Telephone&Telegraph Corp. 79.26 Telephone Service 55554 AT&T Wireless Services-Airtime 3,544.46 Cellular Airtime 55555 AWWA 128.00 Membership-Water Environment Federation 55556 Balloons Unlimited 54.68 Meeting Expenses-Health Fair 55557 Court Order 150.00 Wage Garnishment 55558 Consumers Pipe&Supply Co. 983.87 Plumbing Supplies 55559 County of Orange-Auditor Controller 2,795.00 2003-04 Preliminary Property Tax Roll 55560 Court Trustee 69.12 Wage Garnishment 55561 Employee Benefits Specialists,Inc. 7,943.20 Reimbursed Prepaid Employee Medical&Dependent Care 55562 Court Order 525.00 Wage Garnishment 55563 Franchise Tax Board 100.00 Wage Garnishment 55564 City of Huntington Beach 31.45 Water Use 55565 Industrial Distribution Group 53.88 Key Maintenance Tracking System 55566 Intergraph Corporation 1,490.00 Engineering Meeting Registration 55567 Internal Revenue Service 450.00 Wage Garnishment 55568 Intl.Union of Oper.Eng.AFL-CIO Local 501 3,712.28 Dues Deduction 55569 Irvine Ranch Water District 19.91 Water Use 55570 Johnstone Supply 118.81 Mechanical Parts&Supplies 55571 Kushner Electroplating School 675.00 Source Control Training Registration 55572 Lab Support 3,465.26 Temporary Employment Services 55573 McMaster-Carr Supply Co. 103.86 Mechanical Parts&Supplies 55574 Midway Mfg.&Machining Co. 9,275.00 Refurbish(2)Cylinder Shafts for Hydraulic Pump 55575 National Bond&Trust 2,072.37 U.S.Savings Bonds Payroll Deductions 55576 City of Newport Beach 135.90 Water Use 55577 Nextel Communications 4,033.22 Cellular Phones&Air Time 55578 NASSCO/PACP 750.00 O&M Training Registration 55579 Orange Fluid System Technologies,Inc. 781.04 Plumbing Parts&Supplies 55580 OCEA 524.61 Dues Deduction 55581 Court Order 40.00 Wage Garnishment 55582 Court Order 296.00 Wage Garnishment 55563 Peace Officers Council of CA 1,485.00 Dues Deduction 55584 Seal Beach Chamber of Commerce 200.00 Outreach Program Tent Rental for Seal Beach Sand Castle Festival 55585 Shureluck Sales&Engineering 1,644.92 Mechanical Parts&Supplies 55586 Court Order 721.50 Wage Garnishment 55587 Snap On Industrial 258.81 Tools 55588 Steven Enterprises,Inc. 519.27 Office Supplies 55589 Summit Steel 912.41 Metal 55590 Sunset Industrial Parts 62.82 Mechanical Supplies 55591 SBC 33.67 Telephone Services 55592 Thompson Industrial Supply,Inc. 564.34 Mechanical Supplies 55593 United Way 305.00 Employee Contributions 55594 University of Arizona 10,000.00 Membership-Industry/University Cooperative Research Center(UANSF Water Quality) 55595 Verizon California 90.62 Telephone Services 55596 VWR Scientific Products Corporation 399.70 Lab Parts&Supplies 55597 WEF 170.00 Membership-Water Environment Federation ttn/2101?c EXHIBIT A G:\wp.dta4n\2101CRANE\FAHR\FAHR2003tOCT\Clalms Paid Report-091503.xis Page 1 of 9 10/10/2003 Claims Paid From 09/01/03 to 09115/03 Warrant No. Vendor Amount Description 55598 James A.Carter 295.68 Meeting/Training Expense Reimbursement 55599 Bruce A.Chapman 51.00 Meeting/Training Expense Reimbursement 55600 James E.Colston 236.66 MeefngfTralning Expense Reimbursement 55601 James M.Elo 504.50 Meeting/Training Expense Reimbursement 55602 Ricardo A.Gallegos 596.02 MeetingfTralning Expense Reimbursement 55603 Vladimir A.Kogan 289.50 Meeting/Tralning Expense Reimbursement 55604 Peter McGrath 144.00 Meeting/Tralning Expense Reimbursement 55605 Michael D.Moore 203.00 Meeting/Training Expense Reimbursement 55606 Curt V.$help 604.08 Meeting/Tralning Expense Reimbursement 55607 Calvert,Peggy 165.69 User Fee Refund Re Septic Tanks 55608 Casey,Robert 160.33 User Fee Refund Re Septic Tanks 55609 Christensen,Kelly 2,000.00 Meeting/Training Expense Reimbursement 55610 Deacon,Amos R.L.,Jr. 1,142.42 User Fee Refund Re Septic Tanks 55611 Lewis,John R. 1.539.14 User Fee Refund Re Septic Tanks 55612 Salgado,Joe 1.516.33 User Fee Refund Re Septic Tanks 55613 Unger,John 165.69 User Fee Refund Re Septic Tanks 55614 The Illustrators 2,857.75 Community Outreach Artwork of Ellis Ave.Pump Station 55615 Irvine Ranch Water District 50.00 Inspection Fee-5-54 55616 Air Products&Chemicals 26,294.06 O&M Agreement Oxy Gen Sys MO 8-8-89 55617 ADS Environmental Services,Inc. 164,314.69 Engineering Services J-73-2 55618 Basic Chemical Solutions 77,679.05 Chemicals 55619 Brown&Caldwell 38,984.26 Professional Services P1-37 and Outfall Meter Accuracy Tests 55620 California Soil Products 151,846.74 Blosolids Disposal 55621 Carollo Engineers 567.690.50 Professional Services P2-66&SP-90 55622 Kemiron Pacific,Inc. 335,756.36 Ferric Chloride MO 9-27-95 55623 Lee&Ro,Inc. 75.943.81 Professional Services 5-50,5-51,5-52&5-22-Rl 55624 M.J.Schiff&Associates,Inc. 383,453.74 Construction-Interplant Gas Line Repair 55625 MDS Consulting 26,091.00 Prof.Services-Surveying Various Capital Projects 55626 North American Digester Cleaning Svcs. 63,643.87 Cleaning of(4)Digesters at Plants 1&2 55627 Orange County Water District 953,277.47 GAP Water Use MO 10-23-96 55628 Parsons Infrastructure&Tech.Group 76,271.02 Professional Services-Strategic Planning Concepts&EMT Retreat 55629 Pioneer Americas,Inc. 223,868.59 Sodium Hypochlorite 55630 Polydyne,Inc. 94,357.95 Cationic Polymer 55631 Primary Source Office Furnishings,Inc. 30.720.32 Office Furniture&Repair&Maintenance Services 55632 RD Instruments 105,911.32 Instruments-(4)Acoustic Doppler Current Proflers(ADCP) 55633 SPX Valves&Control 33,642.14 Electric Plug Valves 55634 Tule Ranch/Magan Farms 126,703.75 Residuals Removal MO 3-29-95 55635 Water 3 Engineering,Inc. 27,782.95 Engineering Service J-67 55636 Woodruff,Spradlin&Smart 121,745.11 Legal Services MO 7-26-95 55637 Insituform Technologies,Inc. 282,118.01 Construction 5-29-Rl 55638 Oved Dagan Construction Co. 71,169.72 Construction J-90 55639 Steve P Rados,Inc. 697,485.60 Construction 1-2-4 55640 Union Bank of California 77,498.40 Construction 1-2-4,Retention 55641 Orange County Sanitation District 30,336.01 Worker's Comp.Relmb. 55642 eSysTek 360.00 Software Program Consulting-SMS Implementation 55643 A&G Industries 603.35 Stainless Steel Wash Boxes 55644 A-Plus Systems 2.580.30 Notices&Ads 55645 Accutite Fasteners,Inc. 78.40 Mechanical Parts&Supplies 55646 Agilent Technologies,Inc. 139.09 Lab Parts&Supplies 55647 Airborne Express 228.85 Air Freight 55648 Filter Supply Company 604.46 Con Gen Natural Gas Filters 55649 Alta-Robbins,Inc. 333.12 Instrument Supplies fnt21011c EXHIBIT A G:Swp.dtalfin12101CRANEIFAHRIFAHR200310CT1Claims Paid Report-091503.x1s Page 2 of 9 10/10/2003 Claims Paid From 09/01103 to 09/15/03 Warrant No. Vendor Amount Description 55650 American Airlines 2.514.00 Travel Services 55651 American Public Works Association 395.00 O&M Training Registration 55652 American Seal&Packing 286.12 Mechanical Seals 55653 American Training Resources,Inc. 537.31 Training Videos 55654 Aquarium of the Pacific 496.05 Reimbursable Employee Activity Expense 55655 Aquatic Bioassay And Consulting Labs,Inc. 1,550.00 Toxicity Testing 55656 Archie Ivy,Inc. 1,210.00 Repair of Potholes at Maintenance Shops 55657 Arizona Instrument 15,269.41 Instrument Parts&Supplies 55658 Ashbrook Corporation 308.30 Filter Press Fittings 55659 AssurX,Inc. 5,513.00 CATWEB Software Upgrades&Support 55660 Atlantis Pool Care 680.00 Service Agreement-Admin.Bldg.Atrium 55661 AAA Concept&Technologies,Inc. 4,996.40 Vehicle Wash Spinners-(24)Spinner Kits 55662 ASI Robloon Go Portion Industries 769.83 Programming&Start-Up Services for Robtoon Drives 55663 American Telephone&Telegraph Corp. 1.940.05 Telephone Conference Services 55664 American Telephone&Telegraph Corp. 26.45 Telephone Service 55665 AT&T Wireless Services 2.909.51 Wireless Phone Services 55666 ATCC 71.30 Lab Parts&Supplies 55667 B&F Supply,Inc. 3,794.00 Door Frames&Hardware 55668 Baker Tanks 3.976.00 Tank Rentals 55669 Battery Specialties 471.69 Batteries 55670 Bauer Compressors 2.219.63 Compressor Parts 55671 Ben Meadows Company,Inc. 506.12 Lab Parts&Supplies 55672 BloMerleux Vitek,Inc. 1,250.77 Lab Parts&Supplies 55673 Black&Veatch Corporation 2,003.51 Engineering Services P2-85 55674 Brand Scaffold Rental&Erection,Inc. 200.00 Scaffolding Erection&Dismantling Services at Pit.2,Scrubber Q 55675 Brenntag West,Inc. 2.245.94 Janitorial Supplies 55676 Brenton Safety,Inc. 2.119.89 Safety Supplies 55677 Business Wire 896.00 Notices&Ads 55678 BEC-Bullding Electronic Controls,Inc. 2,400.00 Fire Alarm System Maintenance Program Quarterly Inspection 55679 Cal Protection 464.00 Halon Fire System Repairs 55680 California Automatic Gate 127.50 Automatic Gate Repairs&Maintenance 55681 California Relocation Services,Inc. 78.75 Moving/Relocation Services 55662 Southern California Marine Institute 12,360.00 Ocean Monitoring Vessel Support 55683 Caitrol,Inc. 946.80 Limitorque Actuator Parts 55684 Camp Dresser&McKee,Inc. 1,251.88 Maintenance Services 55685 Capital Appraisal Service 95.00 Vehicle Accident Claim Appraisal Service 55686 Cardlock Fuels 1,141.86 Fueling District Vehicles at Local Gas Stations 55687 Coast Transmission 809.71 Vehicle Repairs 55688 Color Arts,Inc. 603.48 Vehicle Decals 55689 Columbia Analytical Services,Inc. 600.00 Analysis of Wastewater,Industrial Wastewater&Blosolids 55690 Communications Performance Group,Inc. 21,179.60 Professional Services-Hazardous Energy Control Procedures 55691 Computer Sciences Corp. 11,055.50 Consulting&Lab Services-Assay Pilot Project 55692 CompuMaster On-site 2,800.00 On-Site MS Word Training 55693 Consolidated Elect.Distributors,Inc. 1,967.33 Electrical Supplies 55694 Consumers Pipe&Supply Co. 1,130.19 Plumbing Supplies 55695 Cooper Cameron Corporation 367.82 Mechanical Parts&Supplies 55696 Corporate Express 9,466.36 Office Supplies 55697 Costa Mesa Country Club 354.06 Communications Meeting Expenses 55698 Counterpart Enterprises,Inc. 923.63 Mechanical Parts&Supplies 55699 County of Orange-Auditor Controller 429.44 Maint.Agreement-Repair/Installation of Base,Handheld&Vehicle Radios 55700 County Wholesale Electric Co. 2,345.49 Electrical Parts&Supplies 55701 Culligan of Orange County 37.50 Maint.Agreement-Can Gen Water Softener System fin/21011c EXHIBIT A G:1wp.dtalfin12101CRANEIFAHRiFAHR20031OCTtClalms Paid Report-091503.x1s Page 3 of 9 10/10/2003 Claims Paid From 09101103 to 09/15/03 Warrant No. Vendor Amount Description 55702 CGvL Engineers 1,181.75 Engineering Services SP-74 55703 CR&R,Inc. 315.00 Container Rentals 55704 County Sanitation District No.70 4,845.00 Olfactomelry Lab Expense 55705 CSMFO 50.00 Accounting Meeting Registration(California Soc.of Municipal Finance Officers) 55706 David's Tree Service 1,550.00 Tree Maint.Service 55707 Del Mar Analytical 5,905.00 Analysis of Biosollds and Wastewater 55708 Delafield Corp. 298.62 Plumbing Parts&Supplies 55709 Delta Packaging Products,Inc. 149.64 Lab Supplies 55710 Diamond H Recognition 970.63 Employee Service Awards 55711 Dickson's,Inc. 645.64 Electrical Supplies 55712 Digiterra,Inc. 4,741.00 Professional Services-FIS Upgrade 55713 Dorr-Oliver EIMCO USA,Inc. 2,203.49 Mechanical Parts&Supplies 55714 DGA Consultants,Inc. 9,541.75 Professional Services-CCTV Data Evaluation Support 55715 E.Sam Jones Distributors,Inc. 312.48 Electrical Supplies 55716 Edwin M.Perkins 4,673.51 Professional Service -Water Quality Compliance 55717 Ema,Chris 803.53 User Fee Refund Re Septic Tanks 55718 Employers Group 1,000.00 On-Site Stress Management Training 55719 Enchanter,Inc. 3.600.00 Ocean Monitoring&Oulfali Inspection&Monitoring 55720 Environmental Management Consulting 5,805.00 Prof.Services-Data Analysis&Reporting&Ventilation Measurement for Bell Press Bldg. 55721 Environmental Resource Association 1,303.60 Lab Parts&Supplies 55722 Equapac 2,179.55 Hydrochloric Acid 55723 Eurotherm Controls 2.712.45 Electrical Parts&Supplies 55724 Executive Software 1.187.94 Software Maint.Agreement 55725 ENS Resources,Inc. 15,012.00 Professional Services-Legislative Advocate 55726 ESSCO: Engineering Sales Service 6,956.34 Submersible Vortex Pump 55727 FedEx Corporation 236.36 Air Freight 55728 Filarsky&Watt,L.L.P. 2,945.00 Prof.Services-SPMT Labor Negotiation Meetings&Special Services 55729 Fine Science Tools,Inc. 251.69 Lab Parts&Supplies 55730 First American Real Estate Solutions 647.50 Annual Subscription for Orange County Property Information 55731 Fisher Scientific Company,L.L.C. 1,167.59 Lab Supplies 55732 Fitch,Inc. 3,000.00 Annual Surveillance Fee for Series 2000 A&B Certificates of Participation 55733 Five Star Metals,Inc. 343.70 Mechanical Parts&Supplies 55734 Flo-Systems,Inc. 14,112.80 Pump Supplies 55735 Foodcraft Coffee&Refreshment Services 407.20 Meeting Supplies 55736 Fountain Valley Rancho Hand Wash 686.70 Truck Wash Tickets 55737 Franklin Covey 188.42 Office Supplies 55738 Fry's Electronics 13.31 Computer Supplies 55739 G.T.Hall Company 267.68 Electrical Parts&Supplies 55740 Garland Manufacturing Co. 147.13 Mechanical Parts&Supplies 55741 Government Finance Officers Association 95.00 Accounting Training Registration 55742 Grainger,Inc. 5.963.52 Mechanical&Electrical Parts&Supplies 55743 Graybar Electric Company 34.91 Mechanical Parts&Supplies 55744 Great Western Sanitary Supplies 37.63 Janitorial Supplies 55745 Hach c/o Ponton Industries 2,528.02 Lab Parts&Supplies 55746 Harold Primrose Ice 74.00 Ice For Samples 55747 Harrington Industrial Plastics,Inc. 1,522.82 CAD Supplies 55748 Herman Miller Workplace Resource 535.00 Office Furniture 55749 Hill Brothers 19,847.51 Chemicals-Odor&Corrosion Control-Newport Trunkline 55750 Home Depot 336.42 Misc.Repair&Maintenance Material 55751 Hopkins Technical Products 340.37 Pump Supplies 55752 Hub Auto Supply 147.99 Vehicle Parts&Supplies 55753 Industrial Distribution Group 2,835.37 Mechanical Parts,Supplies&Tools fin121011c EXHIBIT A G:twp.dtattin121MCRANE\FAHRIFAHR2003kOCnCialms Paid Report-091503.x1s Page 4 of 9 10/10/2003 C Claims Paid From 09/01103 to 09/15/03 Warrant No. Vendor Amount Description 55754 Information Resources 500.00 Human Resources Service-Background Checks 55755 Insight Investments 18.841.00 Software-NAS Filer System Evaluation Storage Shelf 55756 Interstate Batteries of Cal Coast 700.75 Batteries for Vehicles&Carts 55757 Invensys Systems,Inc. 4,733.93 Instrument Parts&Supplies 55758 InExcess Awards 1,574.31 Employee Service Award Pins 55759 Iron Mountain 75.00 Bid Document Storage Fees P1-37&J-39 55760 Iron Mountain Off-Site Data Protection 387.00 Offslte Back-Up Tape Storage for NT Server 55761 ICC-International Code Council 28.70 Publication 55762 Voided Check - - 55763 J&L Industrial Supply 2,877.41 Precision Tilling Rotary Table 55764 J.G.Tucker and Son,Inc. 2,519.90 Calibration Gas 55765 Jaco Electronics 244.50 Electrical Parts&Supplies 55766 Jamison Engineering Contractors,Inc. 23,799.02 Repair Metering Box"B,"Barscreen#4,and Inspect Digesters E&H at Pit.2 55767 Jay's Catering 5.715.31 Meeting Expenses 55768 Johnstone Supply 379.37 Mechanical Parts&Supplies 55769 JPR Systems,Inc. 504.90 Mechanical Parts&Supplies 55770 Klima,Gilbert Anton 1.142.42 User Fee Refund Re Septic Tanks 55771 Konnie K.Gallery 87.82 Picture Framing Services 55772 Lab Safety Supply,Inc. 266.77 Lab Parts&Supplies 55773 Living Leadership 396.00 Accounting Training Registration 55774 Luccl's Gourmet Foods,Inc. 296.35 Meeting Expenses 55775 LA Chemlcal 4.262.56 Chemicals 55776 LINJER 9,175.43 Professional Service-DART MO 9-22-99 55777 Malcolm Plmle,Inc. 7,115.80 Professional Services 1-10 55778 McJunkln Corporation 1,244.88 Valves 55779 McMaster-Carr Supply Co. 2,164.04 Misc.Parts,Supplies&Equipment 55780 McRay Industries,Inc. 4,343.40 Mechanical Parts&Supplies 55781 Mc Welco Products 1,218.01 Truck Parts&Service-Vehicle 385 55782 Mec Analytical System 7,496.00 Toxicity Analysis 55783 Mellon Trust 23,509.19 Investment Custodian Bank Services 55784 Michael Turnipseed&Associates 3,697.50 Professional Service-Tule Ranch&Yakima Sites Study 55785 Mission Uniform Service 2,710.02 Uniform Rentals 55786 Mitchell Instrument Co. 65.00 Electrical Supplies 55787 Morton Salt 971.48 Salt 55788 Motion Industries,Inc. 4,056.50 Motor 55789 MCR Technologies,Inc. 372.63 Office Supplies 55790 National Plant Services,Inc. 11,501.50 Vacuum Truck Services 55791 Neal Supply Co. 67.34 Plumbing Supplies 55792 Nelson-Dunn,Inc. 20.99 Mechanical Parts&Supplies 55793 NetVersant of Southern California 3,573.44 Security System Maintenance 55794 Newark Electronics 1,351.93 Electrical Parts&Supplies 55795 Nicholas Natty 1,000.00 Legal Service-INS Processing 55796 Nlckey Petroleum Co.,Inc. 6,710.36 Industrial Oil&Motor Oil 55797 Ninyo&Moore Corporate Accounting 9,270.83 Professional Services-Materials Testing MO 6-24-98 55798 The Norco Companies 170.78 Mail Delivery Service 55799 Northern Tool&Equipment Company,Inc. 1.724.92 Generator 55800 Nu-Way Laser Engraving 46.00 Steel Tags 55801 Numatic Engineering 184.30 Mechanical Parts&Supplies 55802 NAFA,Inc. 415.00 Membership 55803 Northwest Aquatic Sciences,Inc. 2.291.00 Toxicity Analysis 55804 0.C.Wimdustrial Co. 364.58 Mechanical Parts&Supplies 55805 Office Depot Business Services Div. 805.33 Office Supplies tin121011c EXHIBIT A G:1wp.dta1fn52101CRANEIFAHRTAHR200310CT%Claims Paid Report-091503.)ds Page 5 of 9 10/10/2003 Claims Paid From 09/01/03 to 09115/03 Warrant No. Vendor Amount Description 55806 OneSource Distributors,Inc. 450.38 Electrical Parts&Supplies 55807 The Orange County Register 384.37 Subscription 55808 Orange County Vector Control District 130.16 Pest Control 55809 Orange Courier 94.50 Courier Services 55810 Orange Fluid System Technologies,Inc. 1,199.02 Plumbing Parts&Supplies 55811 Ortiz Fire Protection 2,655.00 Qtrly.Fire Sprinkler Inspection,Malnl.&Certification for Fire Sprinkler Sys.at Pits.1&2 55812 Oxygen Service Company 1,893.59 Specialty Gases 55813 OCB Reprographics 115.47 Printing Service-MO 1/26/00 55814 OCDM Marketing 963.92 Processing Fees-Public Notice Mailing&Postage 55815 P.L.Hawn Company,Inc. 2,515.36 Air Filters 55816 Pace Analytic Services 975.00 Lab Analyses of Wastewater&Biosolids 55817 Pacific Coast Parts Distribution,Inc_ 145.40 Electrical Parts&Supplies 55818 Pacific Mechanical Supply 1.890.61 Plumbing Supplies 55819 Parker Supply Company 3,573.33 Mechanical Parts,Supplies&Repairs 55820 Partners Consulting Services 9,420.00 FIS On-Site Support-One World XE Migratlon Project 55821 Parts Unlimited 53.34 Automotive Repair Parts 55822 Peak Technologies 302.68 Lab Parts&Supplies 55823 PenValve 1,276.97 Plumbing Parts&Supplies 55824 The Perkin Elmer Corp. 8,023.45 Lab Parts&Supplies 55825 Port Supply 401.73 Mechanical Parts&Supplies 55826 Profit Techniques,Inc. 24.78 Publication 55827 Projects Partners 2,238.40 Temporary Employment Services 55828 PCS Express,Inc. 110.00 Courier Service 55829 PSI Plastic Sales&Installation 2,276.76 Plumbing Parts&Supplies 55830 PVF Sales,Inc. 141.71 Plumbing Parts&Supplies 55831 Radius Maps 1,575.00 Radius Map&Ownership Listings 55832 Rainbow Disposal Co. 2,551.92 Trash Removal 55833 Rainin Instrument Co.,Inc. 567.42 Instrument Repair&Calibration Service 55834 Realtlme Systems Corporation 281.25 Software Consulting Services-CRISP 55835 R.A.Reed Electric 1,009.47 Motor Repair&Cleaning Services 55836 Retrofit Parts&Components,Inc. 394.27 Mechanical Parts&Supplies 55837 Ricoh Business System 1,623.90 Color Copier Lease 55838 RMS Engineering&Design,Inc. 14,120.00 Engineering Services J-89 and N&S Scrubber Complex Caustic Tank Pad 55839 RPM Electric Motors 1,713.78 Motor Repairs 55840 RS Hughes Co,Inc. 138.57 Paint Supplies 55841 Safetycare,Inc. 474.10 Safety Video 55842 Scicon Technologies Corp. 191.42 Instrument Supplies 55843 Science Applications Intl.,Corp. 22,241.52 Ocean Monitoring P-185&P-179 55844 Sea-Gear Corporation 135.00 Lab Parts&Supplies 55845 Sewer Equipment Company of America 764.60 Mechanical Parts,Supplies&Tools 55846 Shamrock Supply Co.,Inc. 2.544.61 Tool Cart&Mechanical Supplies 55847 Shimadzu Scientific Instruments,Inc. 112.29 Lab Parts&Supplies 55648 Shureluck Sales&Engineering 1,474.37 Mechanical Parts&Supplies 55849 Smith Pipe&Supply 1,005.57 Plumbing Parts&Supplies 55850 South Coast Systems,Inc. 13,147.00 Professional Services-Anoxic Gas Floatation Pilot Test 55851 Sparkletts 1,646.37 Drinking Water/Cooler Rentals 55852 Spex Certlprep,Inc. 342.05 Lab Supplies 55853 Stack Computer,Inc. 7,289.29 Windows Server Software&Support Services 55854 Stanley Pest Control 50.00 Pest Control 55855 Stanley Steamer International,Inc. 435.00 Carpet Cleaning Services 55856 Sterling Art 32.70 Art Supplies 55857 Strata Intemational,Inc. 505.46 Chemicals fin/210/1c EXHIBIT A G:1wp.thatfln12101CRANEIFAHRIFAHR20031OCT1Clatms Paid Report-091503.xis Page 6 of 9 10/10/2003 Claims Paid From 09/01103 to 09/15/03 Warrant No. Vendor Amount Description 55858 Summit Steel 140.01 Metal 55859 Sunset Ford 69.28 Auto Parts&Supplies 55860 Sunset Industrial Parts 1,644.39 Mechanical Parts&Supplies 55861 SC Field Technical Services 7,716.34 Valves 55862 SPEC Services,Inc. 19,583.12 Engineering Services J-33.1 55863 Taylor-Dunn 1,771.54 Electric Cart Parts 55864 Techno Coatings 12,045.00 Painting Services-Admin.Building 2nd Floor 55865 Teletrac,Inc. 245.00 Monthly Airtime Service&Software/Hardware Maintenance for Vehicle Tracking System 55866 Terminix International Co. 655.00 Pest Control 55867 Tetra Tech,Inc. 110.00 Source Control Training Registration 55868 The Walking Man,Inc. 700.00 Public Outreach Program Re Bushard&Warner Ave.Projects 55869 Thomas V.Gerlinger 2,790.00 Lab Analyses 55870 Thompson Industrial Supply,Inc. 2,125.45 Mechanical Supplies 55871 ThyssenKrupp Elevator 3.735.00 Elevator Maintenance 55872 Tony's Lock&Safe Service&Sales 303.92 Locks&Keys 55873 Townsend Public Affairs 5,000.00 Legislative&Executive Advocacy for Grant Funding 55874 Tran Consulting Engineers 4.460.00 Engineering Services 5-46 55875 Tri-State Seminar On-the-River 100.00 Engineering and O&M Training Registration 55876 Truck&Auto Supply,Inc. 46.77 Automotive Supplies 55877 Teksystems 12,920.00 Temporary Employment Services 55878 U.S.Geological Survey 9,097.63 Professional Services-Current Meter Deployment 55879 U.S Postal Service 5,000.00 Postage 55880 The Unisource Corporation 7,030.26 Office Supplies 55881 United Parcel Service 18.85 Parcel Services 55882 United Pumping Service 1.924.75 Polymer Tank Cleaning Services at Dewatering Bldg. 55883 Veme's Plumbing 802.69 Maint.Service-Replacement of Backflow Devices 55884 Veritas Software Global Corp 664.54 Server Back-up Software 55885 VWR Scientific Products Corporation 9.809.34 Lab Supplies 55886 The Wackenhut Corporation 19,029.75 Security Guards 55887 Waxle Sanitary Supply 732.95 Janitorial Supplies 55868 Weber Scientific 281.29 Lab Supplies 55869 WEF 438.00 Membership-Water Environment Federation 55890 WEFTEC 695.00 Project Management Oi<ce Meeting Registration 55891 Xerox Corporation 13,140.72 Fax&Copier Leases 55892 Zee Medical 677.26 Safety Supplies 55893 Carol T.Beekman 260.56 Meetingfrrafning Expense Reimbursement 55894 Michael J.Boess 536.75 Meeting/iraining Expense Reimbursement 55895 William D.Cassidy 504.73 Meeting/Training Expense Reimbursement 55896 Ronald C.Cortez 685.78 Meeting/Tralning Expense Reimbursement 55897 Keith W.Cdscuolo 60.00 Meeting/Tralning Expense Reimbursement 55898 Chuck M.Forman 801.32 MeeUng/Tralning Expense Reimbursement 55899 Eric A.Giraud 605.38 Meeting/Trainfng Expense Reimbursement 55900 Ingrid G.Hellebrand 273.10 MeetingfTraining Expense Reimbursement 55901 Tyler T.Hoang 685.78 Meeting/Training Expense Reimbursement 55902 Deirdre E.Hunter 615.23 Meeting/Training Expense Reimbursement 55903 David A.Ludwin 235.00 Meetfng/Tralning Expense Reimbursement 55904 Selwyn D.Mansell 576.38 MeeUngrrralnfng Expense Reimbursement 55905 Robert Ooten 130.02 MeetIng/Training Expense Reimbursement 55906 William F.Pierce 614.46 Meeting/Training Expense Reimbursement 55907 Douglas M.Stewart 837.59 MeeUngfrralning Expense Reimbursement 55908 Patrick A.Sullivan 294.22 Meetingfrralning Expense Reimbursement 55909 Joseph F.Vailone 85.00 Meeting/Tralnfng Expense Reimbursement tin/210/lc EXHIBIT A G.%wp.dtaVin121MCRANEiFAHRTAH11200310CTtC!aims Paid Report-091503.xls Page 7 of 9 10/10/2003 Claims Paid From 09/01/03 to 09/15/03 Warrant No. Vendor Amount Description 55910 Tadeo G.Vitko 40.99 Meetingrrralning Expense Reimbursement 55911 Michael Vuong 685.78 MeetingfTralning Expense Reimbursement 55912 Simon L.Watson 674.25 Meeting/Training Expense Reimbursement 55913 Aldrich,Richard 1,233.71 User Fee Refund Re Septic Tanks 55914 Amtech Elevator Services 452.54 Vehicle Damage Claim Settlement 55915 Bernd,James 1.211.89 User Fee Refund Re Septic Tanks 55916 Braze,Edward G. 1,142.42 User Fee Refund Re Septic Tanks 55917 Bruck,Betty M. 1,233.71 User Fee Refund Re Septic Tanks 55918 Burke,Judilh 803.53 User Fee Refund Re Septic Tanks 55919 Cannon,Daniel 1,233.71 User Fee Refund Re Septic Tanks 55920 Carleton,Adam 1,612.05 User Fee Refund Re Septic Tanks 55921 Cerlfko,George 803.53 User Fee Refund Re Septic Tanks 55922 Coad,DR Thomas F. 1,233.71 User Fee Refund Re Septic Tanks 55923 Corey,Robert James 1,233.71 User Fee Refund Re Septic Tanks 55924 Cortez,Edgar 803.53 User Fee Refund Re Septic Tanks 55925 Foree,J.Michael 803.53 User Fee Refund Re Septic Tanks 55926 Forney,Audrey N. 803.53 User Fee Refund Re Septic Tanks 55927 Franczyk,Kenneth C. 803.53 User Fee Refund Re Septic Tanks 55928 Franks,Beulah P. 1,233.71 User Fee Refund Re Septic Tanks 55929 Green,Marie 803.53 User Fee Refund Re Septic Tanks 55930 Halns,Wesley or Mary Kathryn 803.53 User Fee Refund Re Septic Tanks 55931 Hammond,Greg or Sheri 803.53 User Fee Refund Re Septic Tanks 55932 Hernandez,Rudy 803.53 User Fee Refund Re Septic Tanks 55933 Higgins,Barbara 803.53 User Fee Refund Re Septic Tanks 55934 Johnson,William F. 803.53 User Fee Refund Re Septic Tanks 55935 Kincannon,Patricia 1,142.42 User Fee Refund Re Septic Tanks 55936 Thuytrang,Le 1,233.71 User Fee Refund Re Septic Tanks 55937 Lipps,Bernadette E. 1.142.42 User Fee Refund Re Septic Tanks 55938 Nagel,Greta 1,142.42 User Fee Refund Re Septic Tanks 55939 Orange County Sanitation District 1,321.40 Petty Cash Reimb. 55940 Peale,Clifford 803.53 User Fee Refund Re Septic Tanks 55941 Perklns,Floyd 803.53 User Fee Refund Re Septic Tanks 55942 Porter,Elizabeth J. 117.37 User Fee Refund Re Septic Tanks 55943 Porter,Michael Lee,ST. 1,233.71 User Fee Refund Re Septic Tanks 55944 Saporito,Leo L. 1.233.71 User Fee Refund Re Septic Tanks 55945 Saucedo,Robert 803.53 User Fee Refund Re Septic Tanks 55946 Slotnik,Josephine(Hamilton) 803.53 User Fee Refund Re Septic Tanks 55947 Smith,Steele Clarke 1,233.71 User Fee Refund Re Septic Tanks 55948 Soulerin,Robert E. 1,142.42 User Fee Refund Re Septic Tanks 55949 Spicer,William or Joyce 803.53 User Fee Refund Re Septic Tanks 55950 Stanard,Ray 803.53 User Fee Refund Re Septic Tanks 55951 Talbert,Elizabeth 1,142.42 User Fee Refund Re Septic Tanks 55952 Talyor,Lee A. 803.53 User Fee Refund Re Septic Tanks 55953 Tanji,G.Dean 803.53 User Fee Refund Re Septic Tanks 55954 Vining,Warren 803.53 User Fee Refund Re Septic Tanks 55955 Virus,Dale D. 1,142.42 User Fee Refund Re Septic Tanks 55956 Walre,Helen 1,211.89 User Fee Refund Re Septic Tanks 55957 Yablonka,Jerry D. 803.53 User Fee Refund Re Septic Tanks Total Accounts Payable-Warrants $ 6,439,289.68 Payroll Disbursements fin/210nc EXHIBIT A G:\wp.dla\fin\210\CRANE\FAHR\FAHR20031CCT\Ctaims Paid Report-091503.xls Page 8 of 9 10/10/2003 Claims Paid From 09101103 to 09/15/03 Warrant No. Vendor Amount Description 30763-30858 Employee Paychecks $ 127,737.34 Biweekly Payroll 09/03/03 30859-30859 Interim Paycheck 28.03 OCERS Adjustment 89002-89498 Direct Deposit Statements 858,107.73 Biweekly Payroll 09/03/03 Total Payroll Disbursements $ 985,873.10 Wire Transfer Pa ments JP Morgan Chase Bank 28,614.72 August Interest Payment on 1993 Certificates of Participation JP Morgan Chase Bank 132,797.95 August Societe Generale Swap Payment on 1993 Certificates of Participation Total Wire Transfer Payments $ 161,412.67 Total Claims Paid 09/01103-09115103 $ 7.586.575.45 fin/21011c EXHIBIT A GAwp.dtalfin12101CRANE%FAHRIFAHR20031OCTtClaims Pald Report-091503.xis Page 9 of 9 10/10/2003 Claims Paid From 09/16103 to 09/30103 Warrant No. Vendor Amount Description Accounts Payable-Warrants 55958 Kaiser Foundation Health Plan $ 50,801.76 Medical Insurance Premium 55959 So.Cal.Gas Company 25,547.72 Natural Gas 55960 Fidelity National Title 50,000.00 Purchase&Sale Agreement Rocky Paint Station-Project 5-50 55961 Orange County Sanitation District 599.773.27 Payroll EFT Reimbursement 55962 Advance Business Graphics 181.06 Office Supplies 55963 Airgas Safety 5.060.00 Safety Supplies&Tools 55964 American Express 23,170.87 Purchasing Card Program,Misc.Supplies&Services 55965 Aquarium Doctor 195.80 Human Resources Aquarium Service 55966 Arnold D.Purisch,Ph.D.,Inc. 96.00 Professional Services-Employee/Confidential 55967 Association of Compost Producers 10,000.00 Membership 55968 ASAE 325.00 Compliance Meeting Registration 55969 AT&T Universal Biller 3,276.57 Telephone Service 55970 American Telephone&Telegraph Corp. 128.52 Telephone Service 55971 Bureau of National Affairs,Inc. 1,112.00 Publication 55972 Callan Associates,Inc. 3,550.00 Investment Advisor 55973 Court Order 150.00 Wage Garnishment 55974 Comm Vault Systems,Inc. 7,795.82 Software Support&Maintenance Contract 55975 Communications Performance Group,Inc. 4,800.00 Professional Services-Safety Contractor Qualification Package Development 55976 Cornerstone Systems,Inc. 3,982.44 Software Upgrade 55977 Court Trustee 69.12 Wage Garnishment 55978 Electra-Bond,Inc. 9,966.88 Fusion Bonding/Epoxy Coating Service 55979 Employee Benefits Specialists,Inc. 8,546.25 Reimbursed Prepaid Employee Medical&Dependent Care 55980 Court Order 525.00 Wage Garnishment 55981 Franchise Tax Board 100.00 Wage Garnishment 55982 Graybar Eloclric Company 65.23 Electrical Parts&Supplies 55983 Guarantee Records Management 1,907.43 Off-Site Records Storage 55984 Industrial Distribution Group 37.45 Mechanical Parts&Supplies 55985 Internal Revenue Service 450.00 Wage Garnishment 55986 Intl.Union of Oper.Eng.AFL-CIO Local 501 3,751.72 Dues Deduction 55987 ISI,Inc. 1,663.00 Service Agreement -Communication Equipment 55986 Los Angeles County 1.172.50 Sewer Service Conn.Agreement MO 9/23/98 55989 McMaster-Care Supply Co. 1,267.27 Mechanical Parts&Supplies 55990 Midway Mfg&Machining Co. 16,205.28 Repairs&Maintenance Services and Materials 55991 National Bond&Trust 2,195.45 U.S.Savings Bonds Payroll Deductions 55992 National Safety Council 589.90 Membership 55993 NHRA-National Human Resources Assoc. 150.00 Human Resources Training Registration 55994 The Orange County Register 1,831.14 Subscription 55995 Orange Courier 62.20 Courier Services 55996 OCEA 533.86 Dues Deduction 55997 Pacific Bell/WorldCom 17.33 Telephone Service 55998 Court Order 40.00 Wage Garnishment 55999 Court Order 296.00 Wage Garnishment 56000 Peace Officers Council of CA 1,494.00 Dues Deduction 56001 Pre-Paid Legal Services,Inc. 470.92 Employee Legal Service Insurance Premium 56002 Prodata 295.00 Software Maintenance 56003 Quinn Shepherd Machinery 408.59 Catapillar Air Filters 56004 Reliastar 9,421.05 Employee Medical Health Premium G:\wp.dtaHln1210\CRANE\FAHR\FAHR2003\OCT\Claims Paid Report-093003.xls EXHIBIT B fin/21011c Page 1 of 7 10/10/2003 Claims Paid From 09116/03 to 09/30103 Warrant No. Vendor Amount Description 56005 Richard Chang Associates,Inc. 4,798.40 Employee Development Training Registration 56006 Shureluck Sales&Engineering 273.39 Mechanical Parts&Supplies 56007 Court Order 721.50 Wage Garnishment 56008 Southern California Edison 9.878.45 Power 56009 Southern California Water 78.99 Water Use 56010 Summit Stool 262.64 Metal 56011 SPEC Services,Inc. 19,757.09 Engineering Services J-33-1 56012 Thompson Industrial Supply,Inc. 5.481.63 Motor&Pump 56013 Truesdall Laboratories,Inc. 50.00 Analysis of Blosollds and Wastewater 56014 The UnIsource Corporation 201.93 Office Supplies 56015 United Way 305.00 Employee Contributions 56016 UFLEF-University of Florida Leadership 395.00 Compliance Meeting Registration 56017 Verizon California 3,342.18 Telephone Services 56018 Vision Service Plan-(CA) 8,990.52 Vision Service Premium 56019 WEFTEC 695.00 Engineering Meeting Registration 56020 Xerox Corporation 9,664.58 Copier Leases 56021 3CMA 350.00 Membership 56022 Lary Gibson 320.00 MeetinglTrafning Expense Reimbursement 56023 Air Products&Chemicals 26,294.06 O&M Agreement Oxy Gen Sys MO 8-8-89 56024 Basic Chemical Solutions 54,448.91 Sodium Bisulfile&Sodium Hydroxide 56025 Black&Veatch Corporation 30,085.88 Engineering Services J-77 56026 Boyle Engineering Corporation 101,123.88 Engineering Services 1-2-4 56027 Brown&Caldwell 87,469.90 Professional Services-2-41,Plant O&M Manual,and SOP 56028 California Soil Products 50,350.57 Blosollds Disposal 56029 City of Fountain Valley 26,583.18 Water Use 56030 Coral Energy Resources,L.P. 125,377.20 Natural Gas 56031 Dell Computer 32,325.00 (30)Computers 56032 Delta Dental 55.306.43 Dental Insurance Plan 56033 IPMC do Parsons 1,196,674.00 Engineering Services-Integrated Program Management Consultant 56034 Kemlron Pacific,Inc. 216,249.54 Ferric Chloride MO 9-27-95 56035 Kforce,Inc. 37,748.42 Temporary Employment Services 56036 Margate Construction,Inc. 2,597,003.00 Construction P1-37 56037 Moreland&Associates 30,210.79 Auditing Services MO 3-8-95 56038 Pioneer Americas,Inc. 225,252.27 Sodium Hypochlorlte 56039 Potydyne,Inc. 58,727.74 Calionlc Polymer MO 3-11-92 56040 RBF Consulting 33,612.94 Engineering Services 2-24-1 56041 South Coast Air Quality Management Dist. 36,015.08 Annual Emission,Operation&Misc.Fees 56042 Southern California Edison 28,645.71 Power 56043 Synagro Technologies,Inc. 442,993.30 Residuals Removal MO 3-29-95 56044 Tule RanchlMagan Farms 222,694.55 Residuals Removal MO 3-29-95 56045 U.S.Metro Group,Inc. 26,235.00 Janitorial&Floor Maintenance at Plants 1&2 56046 U.S.Peroxide 285,967.27 Hydrogen Peroxide 56047 Xerxes Corporation 69,138.87 (2)Caustic Storage Tanks wlAccessories and Hardware 56048 J.F.Shea Construction,Inc. 1,099,945.14 Construction P2-85 56049 Ken Thompson,Inc. 34,686.59 Construction 5-56 56050 S.S.Mechanical Corp. 97.838.63 Construction J-40-6 56051 Able Scale Repair 600.00 Qtrly.Scale Inspections and Certifications at Pits.1&2 56052 AccuSlandard,Inc. 562.62 Lab Parts&Supplies G:1wp.dtaUM2101CRANEIFAHRIFAHR200310CTClaims Paid Report-093003.xls EXHIBIT B finl21011c Page 2 of 7 10/10/2003 e Claims Paid From 09/16/03 to 09/30/03 Warrant No. Vendor Amount Description 56053 Advance Business Graphics 155.98 Printing 56054 Air Llquide America Corp. 824.26 Specialty Gases 56055 Airgas-West 6.20 Demurrage 56056 Airgas Safety,Inc. 261.35 Safety Supplies&Equipment 56057 Alhambra Foundry Co.,Ltd. 4,299.23 Manhole Frames&Covers 56058 Aon Consulting 10,990.00 Professional Services-OCERS Labor Management Program 56059 Appleone Employment Service 19,542.31 Temporary Employment Services 56060 Aquarium Doctor 97.90 Human Resources Aquarium Service 56061 Arch Wireless 1.703.62 Airtime,Service&Equipment 56062 Awards&Trophies Company 118.58 Plaques&Awards 56063 ACS Hydraulics,Inc. 927.29 Hydraulic Motor Repair Service 56064 AKM Consulting Engineers 7,489.81 Professional Services 7-36,7-39,7-41 -Trunk Sewer Improvements 56065 API Fund For Payroll Education,Inc. 868.00 Accounting Training Registration 56066 American Telephone&Telegraph Corp. 1,369.35 Telephone Service 56067 Baker Tanks 560.00 Tank Rentals 56068 Bar Tech Telecom,Incorporated 149.26 Telephone Accessories 56069 Brenton Safety,Inc. 1,408.80 Electrical Parts&Supplies 56070 Bush&Associates,Inc. 1,124.00 Surveying Services MO 6-25-97 56071 California Automatic Gale 871.33 Automatic Gale Repairs at Garfield Exit 56072 California Industrial Supplies 481.27 Mechanical Parts&Supplies 56073 CalCoast 295.00 Compliance Meeting Registration 56074 Cardlock Fuels 835.16 Fueling District Vehicles at Local Gas Stations 56075 Carleton Engineers&Consultants,Inc. 2.565.00 Engineering Services-Air Quality 56076 City of Tustin 543.20 Permit Fee for Project J-73-2 56077 Clickguard Corporation 1.621.23 Printer Service Agreement 56078 Coast Fire Equipment 10,762.22 Annual Fire Extinguisher Inspection&Maint.at Pits.1&2 and Pump Stations 56079 Coast Rubber Stamp,Mfg. 354.33 Stationery&Office Supplies 56080 Color Arts,Inc. 2,278.44 Vehicle Decals 56081 Communications Performance Group,Inc. 4,500.00 Prof.Serv.-Chemical Engineering Operating Procedures 56082 Compressor Components Of California 8,930.00 Heat Exchanger Repairs&Malnt. 56083 Computer Protection Technology,Inc. 19,725.00 Computer Malnt.Agreement 56084 Consolidated Elect.Distributors,Inc. 1,458.24 Electrical Supplies 56085 Consumers Pipe&Supply Co. 574.43 Plumbing Supplies 56086 Cooper Cameron Corporation 109.86 Engine Supplies 56087 CoreMedla 1,007.00 Safety Videos 56088 Corporate Express 2,683.22 Office Supplies 56089 Cortech Engineering 8,849.13 Diaphragm Metering Pump&Stroke Actuators 56090 Cost Containment Solutions 3,350.02 Worker's Comp.Services 56091 County of Orange-Auditor Controller 1,666.31 Maint.Agreement-Repaldinstallation of Base,Handheld&Vehicle Radios 56092 County Wholesale Electric Co. 1.824.74 Electrical Parts&Supplies 56093 Cummins Allison Corp. 999.32 Accounting Equipment Malnl.Agreement 56094 Cytec Industries,Inc. 18,026.37 Anionic Polymer Spec.No.9798-18 56095 CGvI-Engineers 3,137.00 Engineering Services SP-74 56095 CH2MHill 738.54 Engineering Services J-87 56097 CR&R,Inc. 2.520.00 Container Rentals 56098 CWEA Membership 92.00 Membership-Calif.Water Environment Assoc. 56099 David's Tree Service 5,485.00 Tree Maint.Service 56100 Del Mar Analytical 5,994.50 Analysis of Blosolids and Wastewater G:1wp.dta1fn12101CRANEIFAHRIFAHR2003\OC'RCIaims Paid Report-093003.x1s EXHIBIT B On1210nc Page 3 of 7 10/1012003 Claims Paid From 09/16/03 to 09/30/03 Warrant No. Vendor Amount Description 56101 Denies,Inc. 495.62 Mechanical Parts&Supplies 56102 Diamond H Recognition 111.81 Employee Servioe Awards 56103 Dunn-Edwards Corporation 187.10 Paint Supplies 56104 DAE Instruments 871.31 Instrument Parts&Supplies 56105 DLT Solutions,Inc. 4,787.55 Software 56106 E.Sam Jones Distributors,Inc. 506.43 Electrical Supplies 56107 Ecology Control Industries 12,813.13 Hazardous Waste Disposal 56108 Edinger Medical Group,Inc. 500.00 Medical Screening 56109 Electra-Bond 2,612.94 Fusion Bonding Services 56110 En Pointe Technologies 2,014.93 Computer Hardware 56111 Enchanter,Inc. 2,700.00 Ocean Monitoring,Outfall Inspection&Maintenance 56112 Environmental Microbiology Consulting 3,400.00 Professional Services J40-6 56113 Environmental Resource Association 127.80 Lab Supplies 56114 FedEx Corporation 37.30 Air Freight 56115 FileNET Conference Headquarters 1,395.00 Planning Meeting Registration 56116 Fisher Scientific Company,L.L.C. 5,565.25 Lab Parts&Supplies 56117 Flow Science,Inc. 10.950.00 Professional Services-Calibration of 48"Magnetic Flow Meter at Pit.1,78"Diversion Line 56118 Fluid Tech.A Div.of FLW,Inc. 409.19 Electrical Parts&Supplies 56119 Foodcraft Coffee&Refreshment Services 700.64 Meeting Supplies 56120 Fountain Valley Paints,Inc. 25.43 Paint Supplies 56121 Franklin Covey 30.43 Office Supplies 56122 Fry s Electronics 302.90 Computer Supplies 56123 Garland Manufacturing Co. 2,739.50 Mechanical Parts&Supplies 56124 Garratt-Callahan Company 2,388.35 Chemicals 56125 Gary H.Hunt Group 5,000.00 Professional Services-Facilitator Re SAWPAIOCSD Issues 56126 George Yardley Co. 1,689.99 Lab Supplies 56127 Glass Tech Supplies,Inc. 581.85 Lab Parts&Supplies 56128 Goldenwest Window Service 2,462.00 Window Cleaning Service-Spec.#990015 56129 Grafix Training&Consulting 4,631.50 On-Site Acrobat Training 56130 Grainger,Inc. 1,802.98 Electrical&Mechanical Parts&Tools 56131 Graybar Electric Company 13,037.75 Hardware/Software Upgrade of Modlcon Controllers 56132 Harold Primrose Ice 74.00 Ice For Samples 56133 Harrington Industrial Plastics,Inc, 888.43 Instrument Parts&Supplies 56134 The Holman Group 891.00 Employee Assistance Program Premium 56135 Home Depot 614.87 Misc.Repair&Maintenance Material 56136 IDEXX Laboratories,Inc. 2,672.20 Lab Parts&Supplies 56137 Imperial Flange&Fitting Co.,Inc. 829.85 Mechanical Parts&Supplies 56138 Industrial Distribution Group 560.24 Mechanical Parts&Supplies 56139 Industrial Metal Supply 237.37 Metal 56140 Invensys Systems,Inc. 2,239.07 Instrument Supplies 56141 IECOC 30.00 Communications Meeting Registration 56142 J&L Industrial Supply 553.16 Instrument Parts&Supplies 56143 J.G.Tucker and Son,Inc. 150.40 Pump Supplies 56144 Jack Higgins 3.000.00 Human Resources Hiring&Interviewing Workshop 56145 Jamison Engineering Contractors,Inc. 2.058.11 Construction-Excavate Pipe at Pit.2 56146 Jays Catering 1,299.18 Meeting Expenses 56147 JPR Systems,Inc. 870.38 Instrument Parts&Supplies 56148 J2 Printing Services 249.98 Printing G:1wp.dta\in\2101CRANE\FAHR\FAHR200310CT\Claims Paid Report-093003AS EXHIBIT B fin121011c Page 4 of 7 10/10/2003 Claims Paid From 09/16/03 to 09/30/03 Warrant No. Vendor Amount Description 56149 Kaman Industrial Technologies 272.05 Instrument Parts&Supplies 56150 Kathco Products 1,862.29 Safety Supplies 56151 Lexis-Nexis 93.70 Books&Publications 56152 Lucci's Gourmet Foods,Inc. 123.45 Meeting Expense 56153 LINJER 2,160.80 Professional Service-DART MO 9-22-99 56154 Maintenance Technology Corp 588.10 Mechanical Supplies 56155 Mantek 346.04 Pest Control Supplies 56156 McMaster-Carr Supply Co. 7,749.83 Mechanical Parts,Supplies&Tools 56157 Midway Mfg&Machining Co. 3.040.00 Mechanical Repairs&Maintenance 56158 Milltronics,Inc. 873.46 Mechanical Parts&Supplies 56159 Mission Uniform Service 5,069.83 Uniform Rentals 56160 MCR Technologies,Inc. 724.83 Instrument Parts&Supplies 56161 MS Abrasive Cleaning Equipment,Inc. 226.98 Instrument Parts&Supplies 56162 National Instruments 107.75 Instrument Repairs&Maintenance 56163 National Plant Services,Inc. 21,160.00 Vacuum Truck Services 56164 National Safety Council 480.84 On-Site Defensive Driving Training 56165 Neal Supply Co. 1,156.97 Plumbing Supplies 56166 Newark Electronics 360.86 Instrument Supplies 56167 Newport Office Equipment 90.00 Typewriter Repair 56168 Nickey Petroleum Co.,Inc. 389.72 Turbine and Industrial Oil 56169 Ninyo&Moore Corporate Accounting 16.979.97 Materials Testing,Inspection&Geotechnical Engineering Services 56170 The Norco Companies 170.78 Mail Delivery Service 56171 O'Connor Sales,Inc. 8,536.33 Valves 56172 Office Depot Business Services Div. 380.66 Office Supplies 56173 Omega Industrial Supply,Inc. 568.06 Janitorial Supplies 56174 OneSource Distributors,Inc. 406.22 Electrical Parts&Supplies 56175 Orange County Public Affairs Assoc. 45.00 Membership 56176 The Orange County Register 3,358.24 Subscription 56177 Orange Fluid System Technologies,Inc. 567.47 Plumbing Supplies 56178 Oxygen Service Company 872.58 Specialty Gases 56179 OCB Reprographics 1,498.10 Printing Service-MO 1/26/00 56180 P.L.Hawn Company,Inc. 46.81 Electrical Supplies 56181 Pace Analytic Services 1,300.00 Lab Analyses 56182 Pacific Bell Internet Services 328.86 Internet Service 56183 Pacific Mechanical Supply 606.79 Plumbing Supplies 56184 Partners Consulting Services 14,640.00 FIS On-Site Support-One World XE Migration Project 56185 Patriot Video Productions 2,923.75 Video 56186 Pearpoint,Inc. 347.65 Repair&Maintenance of CCTV Camera 56187 PenValve 500.39 Plumbing Parts&Supplies 56188 Perkin-Elmer Corp. 301.71 Lab Parts&Supplies 56189 Postmaster General 150.00 Annual Business Reply Permit Fee 56190 Powerflo Products,Inc. 1,513.60 Pump Supplies 56191 Primary Source Office Furnishings,Inc. 6,748.02 Office Furniture 56192 Progressive Business Publications 230.00 Subscription 56193 Projects Partners 6,267.52 Temporary Employment Services 56194 Putzmeister 1,787.72 Pump Supplies 56195 PCS Express,Inc. 55.90 Courier Service 56196 PSI 134.30 Hardware G:\wp.dtaVin\210\CRANEIFAHRIFAHR2003\OCnClatms Paid Report-093003.x1s EXHIBIT 6 fin/2101fc Page 5 of 7 10/10/2003 Claims Paid From 09/16103 to 09/30103 Warrant No. Vendor Amount Description 56197 Pump Engineering Wor QAlr California 241.17 Pump Supplies 56198 Quinn Shepherd Machinery 139.51 Mechanical Parts&Supplies 56199 Ralnin Instrument,L.L.C. 807.70 Lab Parts&Supplies 56200 Reliastar Bankers Security Life Ins. 9,999.66 Employee Life Ins.Premium,Short-Term Disability&Cancer Ins.Payroll Deductions 56201 Retrofit Parts&Components,Inc. 140.04 Mechanical Parts&Supplies 56202 RM Automation clo RM Controls 100.39 Chart Paper 56203 RPM Electric Motors 5,576.02 Motor Repairs 56204 RS Hughes Co,Inc. 410.99 Paint Supplies 56205 S&J Supply Co.,Inc. 137.52 Plumbing Supplies 56206 Scottei Voice&Data,Inc. 2,284.80 Telephone System Maintenance 56207 Shamrock Supply Co.,Inc. 2,035.59 Tools&Absorbent Oil 56208 SheshunoH 289.95 Subscription 56209 Shureluck Sales&Engineering 1,787.78 Mechanical&Hardware Supplies 56210 Sigma-Aldrich,Inc. 204.03 Lab Parts&Supplies 56211 Skalar,Inc. 1,350.11 Lab Parts&Supplies 56212 Smith-Emery Company 1,440.00 Solis&Material Testing 56213 Snap-On Tools,Inc. 235.03 Seat Creeper&Headrests 56214 SoftCholce Corp. 6.296.94 Software 56215 Sparkletts 1.785.06 Drinking Water/Cooler Rentals 56216 Sperling Instruments,Inc. 2,516.91 Flow Meter 56217 St Croix Sensory,Inc. 10,920.00 Olfactometry Measurement Equipment,Software&Training 56218 Stanley Steamer International,Inc. 825,00 Carpet Cleaning Services 56219 Summit Steel 2,320.76 Metal 56220 Sunset Industrial Parts 1,659.56 Mechanical and Plumbing Parts&Supplies 56221 Super Chem Corporation 487.63 Chemicals 56222 Symcas-TSG 1.384.18 SCADA System VAX Service Agreement 56223 SBC 18.97 Telephone Services 56224 SC Field Technical Services 1,869.68 Manhole Covers 56225 SMRP-Society for Maintenance&Rel. 1,015.00 O&M Meeting Registration 56226 Teletrac,Inc. 119.18 Monthly Air-Time Service Fee&Software/Hardware Maint.For Vehicle Tracking Sys. 56227 Tetra Tech,Inc. 8,735.61 Professional Service 11-22 56228 Textile Engineering Associates 15,930.00 Belt Press Supplies 56229 The Conference Board 39.00 Subscription 56230 Thermo Electron Scientific Instruments 11,791.00 Lab Instrument Maintenance Agreement 56231 Thomas S.Gedinger 450.00 Lab Analyses 56232 Thompson Industrial Supply,Inc. 4,804.57 Motor&Mechanical Supplies 56233 Time Warner Communication 40A7 Cable Services 56234 Tony s Lock&Safe Service&Sales 196.24 Locks&Keys 56235 Tropical Plaza Nursery,Inc. 9,014.09 Contract Groundskeeping MO 5-11-94 56236 Truesdell Laboratories,Inc. 50.00 Analysis of Blosoilds and Wastewater 56237 US Filter Corporation 1,159.00 Service Agreement-Lab Purification System 56238 U.S.Geological Survey 15,868.64 Prof.Serv.-Deploy Current Meter 56239 Ultra Scientific 76.14 Lab Parts&Supplies 56240 Underground Service Alert of So.Calif. 350.00 Maintenance Agreement-Underground Mileage Charge 56241 United Parcel Service 57.47 Parcel Services 56242 United States Treasury 10,117.01 Professional Services J-85-Naval Post Graduate School 56243 Valverde Construction,Inc. 443.73 Construction-Emergency Sink Hole Street Repairs on Arroyo 56244 The Vantage Group,L.L.C. 24,880.00 Temporary Employment Service G:1wp.dtaUIM2101CRANEIFAHRIFAHR2003\OCT1CIaims Paid Report-093003.)Js EXHIBIT B fin/21011c Page 6 of 7 10/10/2003 e � Claims Paid From 09/16/03 to 09130/03 Warrant No. Vendor Amount Description 56245 Vedzon California 3,234.61 Telephone Services 56246 Veme's Plumbing 4,658.44 Service Contract-Repairs,Testing&Cert.of Backfiow Devices at Pits.1,2&Pump Sta. 56247 Vertex Business Systems 8.081.25 Software&License-Vertex Payroll Tax 56248 Vortex Corp. 2,079.90 Door Maintenance&Inspections 56249 VWR Sclenll0c Products Corporation 6.442.48 Lab Parts&Supplies 56250 The Wackenhut Corporation 11,636.06 Security Guards 56251 Water Environment Federation 1,500.00 Prof.Services-Bfosolids Audit 56252 Waters Corporation 5,349.80 Lab Parts&Supplies 56253 Waxle Sanitary Supply 409.63 Janitorial Supplies 56254 Weather&Wind Instrument Co. 1,026.78 Wind Sock Frame 56255 Weber Scientific 349.99 Lab Supplies 56256 Wilson Supply,Inc. 1,235.21 Plumbing Parts&Supplies 56257 WEF 268.00 Membership-Water Environment Federation 56258 York International 712.42 Instrument Repairs&Maintenance 55259 Karen I.Baroldi 142.96 Meetingfrraining Expense Reimbursement 56260 Shabbir S.Basrai 117.00 Meeting/Training Expense Reimbursement 56261 Judith M.Bucher 285.92 Meeting/Training Expense Reimbursement 56262 Deon M.Carrico 143.00 Meeting/Training Expense Reimbursement 56263 Ricardo A.Gallegos 341.14 Meeting/Training Expense Reimbursement 56264 Eric A.Glraud 320.95 Meeting/rraining Expense Reimbursement 56265 Deirdre E.Hunter 773.70 Meeting/Tratning Expense Reimbursement 56266 Vladimir A.Kogan 295.00 Meeting/rratning Expense Reimbursement 56267 Larry E.Lazorek 46.00 Meetinglrraining Expense Reimbursement 56268 Vincent S.Lockyer 142.37 Meeting/Training Expense Reimbursement 56269 Matthew P.Smith 160.00 Meeting/rrafning Expense Reimbursement 56270 Douglas M.Stewart 1,269.12 Meeting/Trafning Expense Reimbursement 56271 Dept.of Fish&Game 381.75 Permit Fee-SARI Line 56272 Howard,Steven 3,000.00 Employee Computer Loan Program 56273 Karels,Dean 1,151.50 Employee Computer Loan Program 56274 Michael J.Mengel 365.00 Meeting/Training Expense Reimbursement 56275 Orange County Sanitation District 1,032.41 Petty Cash Reimb. Total Accounts Payable-Warrants $ 8,852,881.34 Payroll Disbursements 30860-30969 Employee Paychecks $ 152,995.77 Biweekly Payroll 9117/03 30970-31182 Interim Paychecks 274,531.56 Retroactive Salary Adjustments&Termination Paycheck 31183-31183 Interim Paycheck 323.85 Reissue Lost Check 88504-89001 Direct Deposit Statements 927,979.18 Biweekly Payroll 9/17/03 Total Payroll Disbursements $ 1,355,830.36 Wire Transfer Payments None $ - Total Wire Transfer Payments $ Total Claims Paid 09/16103-09130103 $ 10,208,711.70 G:twp.dtaltin1210%CRANEIFAHR\FAHR200310CTIClaims Paid Report-093003.xls EXHIBIT B 0n1210ne Page 7 of 7 10/10/2003 • AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING November 19, 2003 - 7:00 P.M. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Board for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item or because there is a need to take immediate action, which need came to the attention of the Board subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at(714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). 1. Invocation and Pledge of Allegiance (Director Jim Silva) 2. Roll Call 3. Consideration of motion to receive and file minute excerpts of member agencies relating to appointment of Directors, if any. (See listing in Board Meeting folders) 4. Appointment of Chair pro tem, if necessary 5. Public Comments: All persons wishing to address the Board on specific agenda items or matters of general interest should do so at this time. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Board of Directors except as authorized by Section 54954.2(b). 11/19/03 Page 2 6. The Chair, General Manager and General Counsel present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. a. Report of Chair; consideration of Resolutions or commendations, presentations and awards b. Report of General Manager C. Report of General Counsel 7. If no corrections or amendments are made, the minutes for the regular meeting held on October 22, 2003 will be deemed approved as mailed and be so ordered by the Chair. 8. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 10/15/03 10/31/03 Totals $11,112,700.19 $11,370,272.71 DIRECTORS: Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving OCSD. This requires that you identify the contributor by name. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with OCSD. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. CONSENT CALENDAR All matters placed on the Consent Calendar are considered as not requiring discussion or further explanation and unless any particular item is requested to be removed from the Consent Calendar by a Director, staff member or member of the public in attendance, there will be no separate discussion of these items. All items on the Consent Calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular order of business. Members of the public who wish to remove an item from the Consent Calendar shall, upon recognition by the Chair, state their name, address and designate by number the item to be removed from the Consent Calendar. The Chair will determine if any items are to be deleted from the Consent Calendar. 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: 11/19/03 Page 3 a. (1) Receive and file petition from Bill Tovatt requesting to annex 1.02 acres to Orange County Sanitation District (OCSD) in the vicinity of Randall Street and Clark Street in an unincorporated area of Orange County; and, (2) Adopt Resolution No. OCSD 03-25, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-33 —Tovatt Annexation). b. (1) Receive and file petition from Ken Kirkland requesting to annex 0.31 acres to Orange County Sanitation District (OCSD) in the vicinity of Randall Street and Clark Street in an unincorporated area of Orange County; and, (2) Adopt Resolution No. OCSD 03-26, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-35 — Kirkland Annexation). END OF CONSENT CALENDAR 10. Consideration of items deleted from Consent Calendar, if any. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on October 22, 2003 to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the November 19, 2003 meeting. C. Consideration of items deleted from Steering Committee Consent Calendar, if any. 12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMTS Consent Calendar a. Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on November 5, 2003 to be filed. b. Receive and file Final Report for Corrosion Management Assessment Study, Specification No. CS-2002-80-13D, dated September 2003, prepared by M.J. Schiff&Associates, Inc. 11/19/03 Page 4 OMTS Non-Consent Calendar C. Consideration of items deleted from OMTS Committee Consent Calendar, if any. 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. Order draft Planning, Design and Construction Committee Minutes for the meeting held on November 6, 2003 to be filed. b. (1) Ratify Change Order No. 1 to Rehabilitation of 36-inch Forcemain (B) Between Bitter Point Pump Station and Junction Box, Contract No. 5-29-R1, with Insituform Technologies, Inc., authorizing a deduction of$15,529, decreasing the total contract amount to $1,536,941; and, (2) Accept Contract No. 5-29-R1 as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. C. Ratify Change Order No. 10 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$56,041, increasing the total contract amount to $71,198,134. d. Ratify Change Order No. 4 to Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, with J.F. Shea Construction, Inc., authorizing an addition of 5197,094, increasing the total contract amount to $14,731,356, e. (1) Approve a budget Amendment of $4,222,000 for Long Term Monitoring Program, Job No. J-73-2, for a project budget of$7,074,000; and, (2) Approve Amendment No. 2 to the Professional Services Agreement with ADS Environmental Services for additional flow monitoring and analysis for an additional amount of $125,000, increasing the total amount not to exceed $6,337,400. f. Approve Amendment No. 1, to the Professional Services Agreement with Malcolm Pirnie, Inc., for Ellis Avenue Pump Station Rehabilitation, Job No. 1-10, providing for additional design engineering services for an additional amount of $400,055, increasing the total amount not to exceed $3,586,082. g. Approve Amendment No. 3 to the Professional Services Agreement with Tetra Tech, Inc. for the Warner Avenue Relief Sewer, Contract No. 11-22, providing for additional engineering services during construction, for an additional amount of $78,500, increasing the total amount not to exceed $440,979. h. Approve Amendment No. 5 to the Professional Services Agreement with Black & Veatch Corporation for additional construction support services for Effluent Pump Station Annex, Job No. J-77, for an additional amount of $1,776,417, increasing the total amount not to exceed to $6,164,240. 11/19/03 Page 5 PDC Non-Consent Calendar i. Consideration of items deleted from PDC Committee Consent Calendar, if any 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR) FAHR Consent Calendar a. Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on November 12, 2003 to be filed. (Minutes to be distributed at 11/19102 Board Meeting.) b. Receive and file Treasurer's Report for the month of October 2003. C. Receive and file the Quarterly Investment Management Program Report for the period July 1, 2003 through September 30, 2003. d. Receive and file the 2003-04 First Quarter Financial Report for the period ending September 30, 2003. e. Approve SAFETY-POL 113 - Exposure Control Plan for Bloodborne Pathogens Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. f. Adopt Resolution No. OCSD 03-27, Authorizing the Director of Human Resources to Appoint or Employ Agents or Advisors to Implement and Administer District's Deferred Compensation Plan Loan Program. g. Adopt Resolution No. OCSD 03-28, Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: 1. Create the Automotive/Heavy Equipment Assistant classification at pay range 53 ($16.772 - $20.965); and, 2. Delete the Lead Collection Facilities Worker classification at pay grade 66 ($23.123 - $28.904). h. Approve the reclassifications of eight District employees, the upgrading of one vacant position and an equity adjustment for one employee. i. Receive, file and approve the District's Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2003, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. j. Authorize staff to invest the Debt Service Reserve Fund for the 2003 Certificates of Participation through a competitive selection process to be conducted by the District's Financial Advisor, Public Resources Advisory Group, in accordance with the District's Investment Policy. 11/19/03 Page 6 k. (1) Approve two additional vanpool routes for the Rideshare Program utilizing existing vans; and, (2) Approve implementation of rideshare incentives in an effort to comply with SCAQMD Rule 2202 and meet established Average Vehicle Ridership (AVR) targeted goal, at the Board's discretion and subject to change by the Board at any time. FAHR Non-Consent Calendar I. Consideration of items deleted frorn FAHR Consent Calendar, if any. 15. JOINT GROUNDWATER REPLENISHMENT SYSTEM COOPERATIVE COMMITTEE (JCC) JCC Consent Calendar a. Order Joint Groundwater Replenishment System Cooperative Committee Minutes for the meeting held on October 13, 2003 to be filed. b. Authorize award of a construction contract by the Orange County Water District (OCWD) to Colich Construction LP, for construction of Groundwater Replenishment System (GWRS) Unit II Pipeline Project, Contract No. GWRS-2003-4, for an amount not to exceed $16,084,005, with OCWD and Orange County Sanitation District paying equal shares of $8,042,003. JCC Non-Consent Calendar C. Consideration of items deleted from JCC Consent Calendar, if any. NON-CONSENT CALENDAR 16. Closed Session CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. a. Convene in closed session, if necessary 11/19/03 Page 7 1. Confer with Lisa Tomko, Director of Human Resources, and Steve Filarsky, Special Labor Counsel, re Meet and Confer Update re Orange County Employees Association (Government Code Section 54957.6). 2. Confer with Lisa Tomko, Director of Human Resources, and Steve Filarsky, Special Labor Counsel, re Meet and Confer Update re Supervisor and Professional Management Team Group (Government Code Section 54957.6). b. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session 17. Matters which a Director may wish to place on a future agenda for action and staff report. 18. Other business and communications or supplemental agenda items, if any 19. Future Meeting Date: The next Board of Directors regular meeting is scheduled for December 17, 2003, at 7:00 p.m. 20. Adjournments :NOTICE TO DIRECTORS: To place items on the agenda for the Regular Meeting of the Board of Directors, items shall be submitted to the Board Secretary no later than the close of business 14 days )preceding the Board meeting. The Board Secretary shall include on the agenda all items submitted by :'Directors, the General Manager and General Counsel and all formal communications. i General Manager Blake Anderson (714)593-7110 banderson cDocsd.com Board Secretary Penny Kyle (714)593-7130 pkyle .ocsd.com Director/Engineering David Ludwin (714)593-7300 dludwint)ocsd.com Director/Finance/Treasurer Gary Streed (714)593-7550 gstreed .ocsd.com Director/Human Resources Lisa Tomko (714)593-7145 Itomko .ocsd.com 'Director/Information Technology Patrick Miles (714)593-7280 pmiles(o)ocsd.com Director/Operations& Maintenance Bob Ooten (714)593-7020 rooten(o)ocsd.com `:.Director/Technical Services Bob Ghirelli (714)593-7400 rahirellina.ocsd.com !Communications Services Mgr. Carol Beekman (714)593-7120 cbeekman(@ocsd.com ;General Counsel Thomas L.Woodruff 714 564-2605 tlw wss law.com (.........)..............................-� �........................................... G:\wp.dta\agenda\Board Agendas\2003 Board Agendas\111903 agenda.doc BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 11/19/03 AGENDA REPORT Item Number Item Number 8 Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Lenora Crane, Executive Assistant SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vote. CONFLICT OF INTEREST NOTIFICATION Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with the District. In general, you must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor. For the specifics of Government Code Section 84308. please see your Director's Handbook or call the office of General Counsel. SUMMARY See attached listing. PRIOR COMMITTEE/BOARD ACTIONS N/A ATTACHMENTS 1. Copies of Claims Paid reports from 10/01/03— 10/15/03 and 10/16/03 — 10/31/03 G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 8.ClaimsPaid.doc Revised: 06/04/03 P' s Claims Paid From 10/01103 to 10115103 Warrant No. Vendor Amount Description Accounts Payable-Warrants 56276 Carollo Engineers $ 41,029.46 Professional Services-Coordinated Commercial Enterprise Study 56277 Orange County Sanitation District 800,510.69 Payroll EFT Reimbursement 56278 Paulus Engineering,Inc. 68,249.00 Engineering Service-Sewer Repair 56279 Perona,Langer,Beck,Lallande&Serbin 65,000.00 Claim Settlement-Personnel Issue 56280 Southern California Edison 115,378.33 Power 56281 Southern California Edison 85,870.37 Power 56282 UBS Financial Services,Inc. 39,172.19 Remarking Fees-Series 2000A Certificates of Participation 56283 UC Regents 30,000.00 Membership-Coastal Water Research&Modeling Project 56284 Airgas Safety,Inc. 4,572.74 Safety Supplies&Equipment 56285 Allied Packing&Rubber,Inc. 121.04 Plumbing Parts&Supplies 56286 American Telephone&Telegraph Corp. 166.72 Telephone Service 56287 AT&T Wireless Services-Airtime 4,122.58 Cellular Phone Service 56288 Carollo Engineers 1,753.50 Professional Services-Rate Fee Study 56289 Court Order 150.00 Wage Garnishment 56290 County Wholesale Electric Co. 163.50 Electrical Parts&Supplies 56291 Court Trustee 69.12 Wage Garnishment 56292 Duigarian,Dick 2,107.21 Reconciliation User Fee Refund Program 56293 Employee Benefits Specialists,Inc. 7,898.20 Reimbursed Prepaid Employee Medical&Dependent Care 56294 Environmental Management Consulting 3,915.00 Prof.Serv.-Data Analysis&Reporting&Ventilation Measurement for Bell Press Bldg. 56295 Court Order 525.00 Wage Garnishment 56296 Franchise Tax Board 100.00 Wage Garnishment 56297 FLW,Inc. 509.44 Mechanical Parts&Supplies 56298 Government Finance Officers Association 50.00 Publication 56299 City of Huntington Beach 30.00 Water Use 56300 Industrial Metal Supply 580.73 Metal 56301 Internal Revenue Service 450.00 Wage Garnishment 56302 Intl.Union of Oper.Eng.AFL-CIO Local 501 3,731.22 Dues Deduction 56303 Irvine Ranch Water District 76.50 Water Use 56304 Living Leadership 1,323.00 Mechanical Maintenance Training Registration 56305 Maintenance Technology Corp. 343.10 Mechanical Supplies 56306 McMaster-Carr Supply Co. 3,658.22 Mechanical Parts,Tools&Supplies 56307 National Bond&Trust 2,045.44 U.S.Savings Bonds Payroll Deductions 56308 Nextel Communications 4,540.04 Cellular Phones&Air Time 56309 Orange Fluid System Technologies,Inc. 496.10 Lab Parts&Supplies 56310 OCEA 552.36 Dues Deduction 56311 Pacific Industrial Supply 126.15 Instrument Parts&Supplies 56312 Court Order 40.00 Wage Garnishment 56313 Court Order 296.00 Wage Garnishment 56314 Peace Officers Council of CA 1,530.00 Dues Deduction 56315 PenValve 437.01 Mechanical Parts&Supplies 56316 Posner,Allen 6,176.70 Reconciliation User Fee Refund Program 56317 Sancon Engineering,Inc. 7,975.00 Construction-Emergency Lining of Failed 8"VCP Lining 56318 City of Seal Beach Finance Dept. 177.76 Water Use 56319 James W.Silva 789.37 Meetingrrraining Expense Reimbursement 56320 Court Order 721.50 Wage Garnishment 56321 Southern California Edison Co. 14,298.91 Construction-Relocation of Edison Line-Garden Grove 56322 Summit Steel 1,131.36 Metal 56323 SBC 1,278.66 Telephone Services 56324 Thompson Industrial Supply,Inc. 5,262.97 Mechanical Parts&Supplies 56325 Lisa L.Tomko 666.01 Meetingfrraining Expense Reimbursement fn1210fic EXHIBIT A G:texcel.dta15n1220WPSHARE1Galms Paid Report102-0310alms Paid Report-101503.)ds Page 1 of 10 11/1012003 Claims Paid From 10101/03 to 10115/03 Warrant No. Vendor Amount Description 56326 United Way 305.00 Employee Contributions 56327 Verizon California 635.55 Telephone Services 56328 Voided Check - - 56329 Nicholas J.Arhontes 417.31 Meeting/Training Expense Reimbursement 56330 Michael A.Berdis 313.83 Meetingfrraining Expense Reimbursement 56331 Thomas M.Blanda 863.76 Meeting/Training Expense Reimbursement 56332 James A.Carter 147.84 Meeting/Training Expense Reimbursement 56333 William D.Cassidy 100.00 Meeting/Training Expense Reimbursement 56334 Ronald C.Cortez 523.36 Meeting/Training Expense Reimbursement 56335 Allan P.Dumlao 629.81 Meeting/Training Expense Reimbursement 56336 James M.Elo 320.25 Meeting/Training Expense Reimbursement 56337 Tim H.Hopkins 34.00 Meeting/Training Expense Reimbursement 56338 Chandra R.Johannesson 275.00 Meeting/Training Expense Reimbursement 56339 Dean R.Karels 31.00 Meeting/Training Expense Reimbursement 56340 Selwyn D.Mansell 378.66 Meeting/Training Expense Reimbursement 56341 Michael N.Morey 280.80 Meeting/Training Expense Reimbursement 56342 Peter M.Morrison 541.61 Meeting/Training Expense Reimbursement 56343 Samuel L.Mowbray 809.37 Meeting/Training Expense Reimbursement 56344 James C.Mullins 150.00 Meeting/Training Expense Reimbursement 56345 Umesh N.Murthy 150.00 Meeting/Training Expense Reimbursement 56346 Edmund L.Pendleton 82.00 Meeting/Training Expense Reimbursement 56347 Rodney K.Petersen 304.91 Meeting/Training Expense Reimbursement 56348 William F.Pierce 393.16 Meeting/Training Expense Reimbursement 56349 Jeffrey T.Reed 943.28 Meeting/Training Expense Reimbursement 56350 Henry R.Salgado 616.11 Meeting/Training Expense Reimbursement 56351 Curt V.Shelp 281.60 Meeting/Training Expense Reimbursement 56352 Jean E.Tappan 118.62 Meetingf rraining Expense Reimbursement 56353 Charles F.Winsor 170.00 Meeting/Training Expense Reimbursement 56354 County of Orange-Auditor Controller 720.00 Maint.Agreement-Repair/Installation of Base,Handheld&Vehicle Radios 56355 Crane,Lenora 1,671.80 Employee Computer Loan Program 56356 Luna,Lourdes 2.091.79 Employee Computer Loan Program 56357 WEFTEC 100.00 Project Management Office Meeting Registration 56358 ADS Environmental Services,Inc. 64,243.47 Professional Services J-73-2 56359 Black&Veatch Corporation 326,504.46 Engineering Services P1-76,J-71-3&P2-85 56360 Blue Cross of California 650,452.92 Medical Insurance Premium 56361 California Soil Products 48,325.29 Biosolids Disposal 56362 Carollo Engineers 47,321.39 Professional Services-Coordinated Commercial Enterprise Study 56363 Carollo Engineers 523,873.90 Professional Services-Microfiitration Demonstration Project&P2-66 56364 Delta Dental 55,474.96 Dental Insurance Plan 56365 Fluor Enterprises,Inc. 56,125.29 Engineering Services J-84 56366 Hill Brothers 49,579.68 Chemicals-Odor&Corrosion Control-Newport Trunkline 56367 Jamison Engineering Contractors,Inc. 54,799.21 Constr.-Gas FlapfVari.Loc.;Install Concrete Box,Manhole Cover Repair;Junction Box Investigation 56368 Kaiser Foundation Health Plan 50,801.76 Medical Insurance Premium 56369 Malcolm Pimie,Inc. 55,824.38 Professional Services 1-10&J-79 56370 Mooring Systems,Inc. 41,678.00 (4)Trawl Resistant Bottom Mounts&Edge Tech Deck Unit 56371 Orange County Water District 60,783.42 GAP Water Use MO 10-23-96 56372 RBF Consulting 30,028.10 Engineering Services 2-24-1 56373 Science Applications Intl.,Corp. 54,032.92 Professional Services-Ocean Monitoring P-179&P-185 56374 Southern California Material Handling 32,960.60 (1)Pneumatic Tire Forklift 56375 Tule Ranch/Magan Farms 155,498.53 Residuals Removal MO 3-29-95 56376 U.S.Metro Group,Inc. 26,235.00 Janitorial&Floor Maintenance at Plants 1&2 56377 Waste Markets 99,943.22 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mat'I.Removal en1210rtc EXHIBIT A 1. G:%excel.dtalfin12201APSHARE\Claims Paid Report=-=Claims Paid Report-101503.xis Page 2 of 10 11110/200�' Claims Paid From 10101103 to 10115103 Warrant No. Vendor Amount Description 56378 Woodruff,Spradlin&Smart 112,565.75 Legal Services MO 7-26-95 56379 ARB,Inc. 1,113,237.18 Construction 11-22 56380 Cora Constructors 456,120.00 Construction 7-7-2 56381 Steve P Rados,Inc. 741,690.90 Construction 1-24 56382 Union Bank of California 82,410.10 Construction 1-24,Retention 56383 Kienow Associates,Inc. 27,451.51 Litigation Services-Bushard Trunk Sewer Rehabilitation 56384 A&G Industries 858.39 Stainless Steel Wash Boxes 56385 A Tint of Glass 368.00 Window Tinting 56386 Abatix Environmental Corp. 220.89 Hardware 56387 Adamson Industries 257.95 Lab Parts&Supplies 56388 Advanced Engine Technology Corporation 3,774.67 Engine Parts&Supplies 56389 Agilent Technologies,Inc. 1,347.76 Lab Parts&Supplies 56390 Airborne Express 75.64 Air Freight 56391 Airgas Safety,Inc. 959.86 Safety Supplies&Equipment 56392 Allied Packing&Rubber,Inc. 1,963.14 Mechanical Supplies 56393 Alta-Robbins,Inc. 53.50 Instrument Supplies 56394 Aluminum Precision 588.50 Reconciliation User Fee Refund Program 56395 American Industrial Supply,Inc. 685.58 Insecticide 56396 American Machinery&Blade,Inc. 2,347.46 Professional Services-Asbestos Study 56397 Archie Ivy,Inc. 2,835.00 Mechanical Parts&Supplies 56398 Atlantis Pool Care 750.00 Service Agreement-Admin.Bldg.Atrium 56399 Awards&Trophies Company 26.27 Plaques 56400 ABB Automation,Inc. 775.24 Flow Meter Repairs 56401 AMSA 695.00 Compliance Meeting Registration 56402 Robicon Corporation 519.83 Prof.Serv.-Programming&Complete Start-Up of Robicon Drives 56403 American Telephone&Telegraph Corp. 82.46 Telephone Service 56404 AT&T Wireless-TITAN 676.76 Cellular Phone Equipment&Accessories 56405 AT&T Wireless Services 3,066.75 Wireless Phone Services 56406 Baker Tanks 3.136.00 Tank Rentals 56407 Battery Specialties 608.23 Batteries 56408 Ben Meadows Company,Inc. 19.84 Lab Supplies 56409 BioMerieux Vitek,Inc. 1,078.86 Lab Supplies 56410 BioSpherical Instruments,Inc. 172.69 Instrument Maint. 56411 Brown&Caldwell 200.00 Notices&Ads 56412 Bush&Associates,Inc. 1,260.00 Surveying Services MO6-25-97 56413 BC Wire Rope&Rigging 597.32 Rigging Devices&Certification 56414 California Auto Collision 1,396.59 Vehicle Repairs-V-328 56415 California Relocation Services,Inc. 1,357.51 Moving/Relocation Services 56416 California State University Institute 11,404.50 Ocean Monitoring Vessel Support 56417 Caltrol,Inc. 4,123.32 Mechanical Repairs&Maintenance 56418 CaICOFI 300.00 Compliance Training Registration 56419 Ce112Cell 484.90 Cellular Phone Equipment&Accessories 56420 Center for Creative Growth 4,600.00 Professional Services-O&M Executive&Management Coaching 56421 Certified Truck Bodies 10,193.37 Installation of Generator on Truck Bed&Misc.Parts-V-527 56422 Charles P.Crowley Co. 140.96 Instrument Parts 56423 Clickguard Corporation 222.75 Printer Service Agreement 56424 Coast Fire Equipment 1,363.56 Fire Extinguishers 56425 Coast Rubber Stamp,Mfg. 77.58 Stationery&Office Supplies 56426 Columbia Analytical Services,Inc. 850.00 Analysis of Industrial Wastewater,Wastewater&Biosolids 56427 Communications Supply Corp_ 243.95 Electrical Parts&Supplies 56428 Compressor Components of California 3,744.00 Coil Cleaning&Testing&Compressor Parts 56429 Computer Sciences Corp. 10.756.61 Consulting&Lab Services-Assay Pilot Project fin12109c EXHIBIT A G:lexcel.dtalfin122044PSHARE\Ciaims Paid Report102-030aims Paid Repot-101503.xls Page 3 of 10 11/10/2003 Claims Paid From 10101103 to 10116/03 Warrant No. Vendor Amount Description 56430 Con-Way Western Express 282.52 Freight 56431 Consolidated Elect.Distributors 3,789.82 Electrical Fixtures,Parts&Supplies 56432 Consumers Pipe&Supply Co. 104.94 Plumbing Supplies 56433 Cooper Camerion Corporation 6,585.63 Cen Gen Engine Parts 56434 Corporate Express Imaging 2,401.70 Computer Supplies 56435 Corporate Express 4,715.74 Office Supplies 56436 Counterpart Enterprises,Inc. 830.03 Mechanical Parts&Supplies 56437 County Wholesale Electric Co. 454.80 Electrical Parts&Supplies 56438 CEM Corporation 1,400.16 Lab Supplies 56439 CEPA Company 125.00 Lab Equipment Maint.Service 56440 CGvL Engineers 3,757.28 Engineering Services P1-94 56441 CR&R,Inc. 315.00 Container Rentals 56442 County Sanitation District No.70 6,290.00 Olfactometry Lab Expense 56443 CSMFO 100.00 Membership 56444 CWEA 150.00 Notices&Ads 56445 CWEA Membership 97.00 Membership-Calif.Water Environment Assoc. 56446 David's Tree Service 5,875.00 Tree Maint.Service 56447 Del Mar Analytical 2,555.00 Analysis of Biosolids and Wastewater 56448 Diamond H Recognition 111.61 Employee Service Awards 56449 Document Control Solutions,Inc. 2,108.00 Software Support 56450 Dunn-Edwards Corporation 316.61 Paint Supplies 56451 DGA Consultants,Inc. 4,697.00 Engineering Services-CCTV Data Evaluation Support 56452 DMARK Corporation 4,240.97 Workbench&Accessories 56453 E.Sam Jones Distributors,Inc. 2,301.15 Electrical Supplies 56454 Ecology Control Industries 1,297.33 Hazardous Waste Services 56455 Ecology Tire,Inc. 338.50 Waste Management-Tires 56456 Edinger Medical Group,Inc. 1,000.00 Medical Screening 56457 Electro-Test,Inc. 10,285.80 Professional Services J-33-1 56458 Employers Group 3,009.40 Membership 56459 Employers Group Service Corp. 1,750.00 Human Resources On-Site Training 56460 Employment Development Dept. 2,338.27 State Unemployment Tax 56461 Enchanter,Inc. 2,700.00 Ocean Monitoring&Outfall Inspection&Maintenance 56462 Eriez Magnetics 2,787.01 Lifting Magnets 56463 ENS Resources,Inc. 15,000.00 Professional Services-Legislative Advocate 56464 FedEx Corporation 138.14 Air Freight 56465 Filarsky&Watt,L.L.P. 4,275.00 Prof.Services-OCSD Bargaining Group Labor Negotiation Meetings&Special Services 56466 First American Real Estate Solutions 647.50 Subscription to Orange County Property Information 56467 Fisher Scientific 16,064.64 Lab Parts&Supplies 56466 Flomax Products,Inc. 922.77 Mechanical Parts&Supplies 56469 Fortis Benefits Insurance Company 21,514.87 Long Term&Short-Term Disability Ins.Premium 56470 Franklin Covey 269.05 Office Supplies 56471 Fry's Electronics 977.80 Computer Supplies 56472 G.F.O.A. 95.00 Accounting Training Registration 56473 Garratt-Callahan Company 4,086.75 Chemicals 56474 General Petroleum 17,761.01 Unleaded Gasoline 56475 Gerhardt's,Inc. 2,568.61 Mechanical Parts&Supplies 56476 Getinge Castle 911.24 Lab Parts&Supplies 56477 Golden State Controls 751.18 Electrical Parts&Supplies SCA78 Grafix Training&Consulting 4,631.50 On-Site Adobe Acrobat Training 56479 Grainger,Inc. 7,221.93 Electrical Parts&Supplies 56480 Haaker Equipment Company 168.14 Misc.Vehicle Repairs,Parts&Service 56481 Hach Go Ponton Industries 1,353.97 Lab Parts&Supplies fin1210Ac EXHIBIT A t G:lexcel.dta0n1220L4PSHARE1Gaims Paid Report102-031Claims Paid Report-101503.xIs Page 4 of 10 11/10/200 i .. Claims Paid From 10/01103 to 10115103 Warrant No. Vendor Amount Description 56482 Hach Company 1,960.50 Lab Supplies 56483 Harbour Engineering Group 15,604.00 (4)14"Gould Pump Impellers 56484 Harold Primrose Ice 55.50 Ice For Samples 56485 Harrington Industrial Plastics,Inc. 308.53 Plumbing Supplies 56486 Heat Technology Products 4,703.04 Mechanical Parts,Supplies&Repairs 56487 Herman Miller Workplace Resource 7.24 Office Supplies 56488 Home Depot 193.30 Misc.Repair&Maintenance Material 56489 Hopkins Technical Products 498.92 Pump Supplies 56490 Hub Auto Supply 500.87 Vehicle Parts&Supplies 56491 HI Standard Automotive 388.77 Automotive Parts,Supplies&Repairs 56492 Industrial Distribution Group 1,501.28 Mechanical Parts&Supplies 56493 Industrial Threaded Products,Inc. 3,033.64 Mechanical Parts&Supplies 56494 Information Resources 875.00 Human Resources Service-Background Checks 56495 Insight Investments 4,697.90 Electrical Parts&Supplies 56496 Inlratek Computer,Inc. 8,760.00 IBM Network Support 56497 Invensys Systems,Inc. 5,258.91 Electrical Parts&Supplies 56498 Ionics Instrument Business Group 2,507.20 Lab Supplies 56499 Iron Mountain 75.00 Bid Document Storage Fees P1-37&J-39 56500 Iron Mountain Off-Site Data Protection 234.00 Offsite Back-Up Tape Storage for NT Server 56501 ISCO,Inc. 9,051.00 Instrument Parts&Supplies 56502 IPI GrammTech,Inc. 13,612.50 Software Maint.Agreement 56503 J E Phillips Company,Inc. 4,195.79 Electrical Parts&Supplies 56504 J.G.Tucker and Son,Inc. 1,300.27 Cell Chlorine for Cal 2000 Generator 56505 J.L.Wingert Co. 1,508.65 Electrical Supplies 56506 Jay's Catering 775.26 Meeting Expenses 56507 Jensen Instrument Co. 1,667.73 Mechanical Parts&Supplies 56508 Johnson&Associates,L.L.C. 5,000.00 Professional Services-2003 Benchmark Survey Update 56509 Johnstone Supply 17.34 Water Filters 56510 JPMorgan Chase Bank 8,798.00 Annual Administration Fees for 1993 Refunding Certificates of Participation 56511 Kforce,Inc. 5,822.31 Temporary Employment Services 56512 Kroy,L.L.C. 81.30 Stationery&Office Supplies 56513 KW Communications 5,257.50 Community Outreach Re Bushard Trunkline Replacement Project 56514 Lee&Re,Inc. 1,993.99 Professional Services P1-93 56515 Lucci's Gourmet Foods,Inc. 106.63 Meeting Expense 56516 LINJER 1,792.52 Professional Service-DART MO 9-22-99 56517 M.J.Schiff&Associates,Inc. 3,456.00 Professional Services-Corrosion Assessment Study 56518 MassMutual Michel Financial Group 3,950.64 Executive Disability Plan Premium 56519 Mc Junkin Corp—Ontario Branch 517.74 Valves 56520 McBain Instruments 13026 Microscope Service&Parts 56521 McMahan Business Interiors 676.02 Computer Cabinet 56522 McMaster-Carr Supply Co. 3,807A8 Mechanical Parts&Supplies 56523 McRay Industries,Inc. 4,060.45 Mechanical Parts&Supplies 56524 Mechanical Seal Repair,Inc. 802.62 Mechanical Seal Repair 56525 Medlin Controls Co. 1,365.77 Instrument Supplies 56526 Michael Asner Consulting 450.00 Purchasing Training Registration 56527 Mid-West Associates 5,471.94 Mechanical Parts&Supplies 56528 Midway Mfg&Machining Co- 1,240.00 Mechanical Repairs&Maintenance 56529 Mission Uniform Service 4,341.04 Uniform Rentals 56530 Motor Cargo 135.25 Freight 56531 Myers Power Products,Inc. 84.35 Electrical Supplies 56532 MARMAC Field Services,Inc. 22,934.10 Professional Services 5-56 56533 MGD Technologies,Inc. 18,300.00 Temporary Flow Monitoring flnr21011c EXHIBIT A G:lexcel.dta1ftnV201APSHARE%Claims Paid Report102-031Clalms Paid Report-101503.xis Page 5 of 10 11/10/2D03 Claims Paid From 10/01103 to 10115/03 Warrant No. Vendor Amount Description 56534 Mine Safety Appliances 1,167.46 Instrument Parts&Supplies 56535 National Institute of Standards&Technology 1,184.00 Lab Parts&Supplies 56536 National Plant Services,Inc. 440.00 Vacuum Truck Services 56537 Neal Supply Co. 7.65 Plumbing Supplies 56538 Network Associates,Inc. 3,556.77 Software Upgrade 56539 NetVersant of Southern California 5,559.86 Security System Maintenance 56540 New Hermes,Inc. 247.17 Mechanical Parts&Supplies 56541 Newark Electronics 156.44 Instrument Supplies 56542 Nicholas Netty 605.00 I.N.S.Permit Fees 56543 Nickey Petroleum Co.,Inc. 741.45 Turbine Oil 56544 Northern Tool&Equipment Company,Inc. 109.34 Battery&Tray for Honda Generator 56545 Nu-Way Laser Engraving 138.40 Steel Tags 56546 Office Depot Business Services Div. 2.757.52 Office Supplies 56547 Omega Industrial Supply,Inc. 1,093.80 Janitorial Supplies 56548 OneSource Distributors,Inc. 1,073.69 Electrical Parts&Supplies 56549 Orange County Hose Company 293.45 Hose Supplies&Parts 56550 The Orange County Register 3,284.08 Subscription 56551 Orange Fluid System Technologies,Inc. 92.00 Plumbing Supplies 56552 Osterbauer Compressor 1,118.49 Mechanical Supplies 56553 Oxygen Service Company 2,772.20 Specialty Gases 56554 OCASSE 99.00 Safety&Health Meeting Registration 56555 OCDM Marketing 5,725.50 Processing Fees-Public Notice Mailing&Postage 56556 ORE Offshore 9,899.68 Coastal Acoustic Release Transponder 56557 P.L.Hawn Company,Inc. 185.67 Electrical Supplies 56558 Pacific Industrial Supply 606.47 Small Tools 56559 Pacific Parts&Controls,Inc. 236.62 Electrical Supplies 56560 Pacific Process Equipment,Inc. 123.35 Mechanical Parts&Supplies 56561 Parker Hannifin Corporation 224.14 Mechanical Parts&Supplies 56562 Parker Supply Company 20,045.71 Mechanical Parts&Supplies 56563 Parkhouse Tire,Inc. 3,607.98 Tires 56564 Paulus Engineering,Inc. 8,837.00 Construction-Sink Hole Repairs on Beach Blvd. 56565 Pen Valve 2,618.25 Plumbing Parts&Supplies 56566 Perrna Pure,Inc. 72.37 Lab Parts&Supplies 56567 PinnacleOne Institute 675.00 Engineering&Construction Training Registration 56568 Power Design 8,490.70 Power Supply 56569 Pre-Paid Legal Services,Inc. 463.45 Employee Legal Service Insurance Premium 56570 Primary Source Office Furnishings,Inc. 4,505.52 Office Furniture 56571 Process Equipment Company 879.15 Pump Supplies 56572 Projects Partners 1,119.20 Temporary Employment Services 56573 PCS Express,Inc. 110.00 Courier Service 56574 PRSA-Orange County Chapter 75.00 Notices&Ads 56575 Quinn Shepard Machinery 32.81 Catapiilar Oil Filters 56576 R&R Instrumentation,Inc. 1,040.40 Instrument Supplies 56577 R.W.Beck 3,233.80 Professional Services P1-90 56578 Rainin Instrument,L.L.C. 540.37 Lab Parts&Supplies 56579 Reliastar 9,403.70 Employee Medical Health Premium 56580 Relizon Company 387.90 Publication 56581 RemedyTemp,Inc. 2,397.44 Temporary Employment Services 56562 Retrofit Parts&Components,Inc. 3,805.59 Mechanical Parts&Supplies 56583 RPM Electric Motors 967.46 Repairs&Maintenance Service 56584 S&J Supply Co.,Inc. 1,034.40 Pump Supplies 56585 Safety-Kleen 500.20 Parts Washer Lease&Service fin12104c EXHIBIT G:%excel.dta1fin172044PSHARE1Gaims Paid Report102-031CIaims Paid Report-101503.x1s Page 6 of 10 11/1012003 Claims Paid From 10101103 to 10/15103 Warrant No. Vendor Amount Description 56586 Saint-Gobain Performance Plastics Corp. 2,771.24 Lab Parts&Supplies 56587 Sancon Engineering,Inc. 2,030.00 Construction-Pump Out(3)Air Jumpers 56588 Schwing America,Inc. 29.12 Pump Supplies 56589 Scottel Voice&Data,Inc. 2,284.80 Telephone System Maintenance 56590 Sethco Division I Met-Pro Corp 1,156.93 Pump Supplies 56591 Shamrock Supply Co.,Inc. 528.08 Painting Supplies 56592 Shasta Electric,L.P. 23,180.49 Construction-Electrical Cable Removal 56593 Sigma-Aldrich,Inc. 136.79 Lab Parts&Supplies 56594 Smardan Supply Company/Orange Coast 213.13 Mechanical Parts&Supplies 56595 Smith Pipe&Supply 587.92 Plumbing Supplies 56596 Smith-Emery Company 82.00 Concrete&Other Materials Testing 56597 Sparing Instruments,Inc. 2,362.29 Mechanical Parts&Supplies 56598 Spex Certiprep,Inc. 308.74 Lab Parts&Supplies 56599 Stanley Steamer International,Inc. 581.35 Carpet Cleaning Services 56600 Strata International,Inc. 505.46 Chemicals 56601 Summit Steel 863.36 Metal 56602 Sunset Ford 12.61 Automotive Parts&Service 56603 Sunset Industrial Parts 4,679.38 Mechanical Supplies 56604 Super Power Products 775.80 Janitorial Supplies 56605 Systime Computer Corp. 17,975.00 Professional Services-J D Edwards One World XE Implementation 56606 SC Field Technical Services 2.675.95 Flame Arrester 56607 SETAC 500.00 Compliance Meeting Registration 56608 SPX Valves&Control 4,929.78 Valves 56609 T&C Industrial Controls,Inc. 929.24 Electrical Supplies 56610 Tekdraulics,Inc. 2,076.08 Mechanical Supplies 56611 Teledyne Electronic Tech. 175.81 Instrument Parts 56612 Terminix International 3,045.00 Pest Control 56613 Terminix International Co.#2474 910.00 Pest Control 56614 Thomas V.Gerlinger 1,385.00 Lab Analyses 56615 Thompson Industrial Supply,Inc. 1,741.61 Mechanical Parts&Supplies 56616 Time Motion Tools 236.67 Tools 56617 Time Warner Communication 40.47 Cable Services 56618 Times Community News 350.00 Notices&Ads 56619 Todd Painting,Inc. 2,908.80 Painting Services-Electrical&Instrumentation Bldg.6 56620 Tony's Lock&Safe Service&Sales 71.85 Locks&Keys 56621 Toshiba International Corporation 106.54 Electrical Repairs 56622 Townsend Public Affairs 5,000.00 Legislative&Executive Advocate for Grant Funding 56623 Tropical Plaza Nursery,Inc. 11,170.09 Contract Groundskeeping MO 5-11-94 56624 Truck&Auto Supply,Inc. 688.54 Automotive Supplies 56625 Truesdail Laboratories,Inc. 2,220.00 Analysis of Biosolids and Wastewater 56626 TEKsystems 13,371.00 Temporary Employment Services 56627 US Filter Corporation 1,159.00 Service Agreement-Lab Purification System 56628 Ultra Scientific 319.70 Lab Supplies 56629 United Parcel Service 1,088.25 Parcel Services 56630 United States Treasury 2,929.78 Professional Services J-85-Naval Post Graduate School 56631 UC Regents 1,245.00 Human Resources Training Registration 56632 US Filter Westates Carbon 1,679.84 200 Series Carbon Absorber 56633 The Vantage Group,L.L.C. 13,346.00 Temporary Employment Service 56634 Varian,Inc. 2,367.10 Lab Parts&Supplies 56635 Veme's Plumbing 175.00 Service Contract-Testing&Cert.Backflow Devices at Plts. 1&2&Pump Sta. 56636 Village Nurseries 29.08 Landscaping Supplies 56637 Vision Service Plan-(CA) 9,007.20 Vision Service Premium fin1210Ac EXHIBIT A G:lexcel.dtaUn\2201APSHARE1Gaims Paid Report102-030aims Paid Report-101503.x1s Page 7 of 10 11110/2003 Claims Paid From 10101103 to 10/15/03 Warrant No. Vendor Amount Description 56638 VWR Scientific Products Corporation 6,914.91 Lab Parts&Supplies 56639 The Wackenhut Corporation 17,204.85 Security Guards 56640 Waco Filters 2,018.04 Filters 56641 Water 3 Engineering,Inc. 13,171.63 Engineering Service J-67 56642 Waxie Sanitary Supply 651.99 Janitorial Supplies 56643 Weber Scientific 369.35 Lab Supplies 56644 Western States Controls 1,895.66 Mechanical Parts&Supplies 56645 WEF 1,608.00 Membership-Water Environment Federation 56646 Xerox Corp-OMNI 3,848.16 Fax Machine 56647 Xerox Corporation 11,677.10 Fax&Copier Leases 56648 XESystems,Inc, 825.00 Xerox Synergix Scan System Maintenance Agreement 56649 York International 361.53 Oil&Filters 56650 Zee Medical 90.51 Safety Supplies 56651 Unity Constructors 14,487.30 Construction 7-14-4 56652 Juan J.Ambriz 328.64 Meeting/Training Expense Reimbursement 56653 Emilio Adston 457.48 Meeting/Training Expense Reimbursement 56654 Layne T.Baroldi 149.75 Meeting/Training Expense Reimbursement 56655 James L.Burror 131.00 Meeting/Training Expense Reimbursement 56656 James A.Carter 237.93 Meeting/Training Expense Reimbursement 56657 George A.Charette 488.12 Meeting/Training Expense Reimbursement 56658 Peter Cheffs 392.18 Meeting/Training Expense Reimbursement 56659 Donald R.Cleveland 194.07 Meeting/Training Expense Reimbursement 56660 Philip F.Cordova 302.30 Meeting/training Expense Reimbursement 56661 Carla D.Dillon 304.88 Meetingrrraining Expense Reimbursement 56662 John B.Falkenstein 312.87 Meeting/Training Expense Reimbursement 56663 David P.Francis 272.45 Meeting/Training Expense Reimbursement 56664 Roy A.Hendy 501.81 Meeting/Training Expense Reimbursement 56665 TylerT.Hoang 504.55 Meeting/Training Expense Reimbursement 56666 Deirdre E.Hunter 610.21 Meet ingfrraining Expense Reimbursement 56667 Chandra R.Johannesson 169.00 Meeting/Training Expense Reimbursement 56668 Voided Check - - 56669 Michael J.McCusker 391.56 Meeting/rraining Expense Reimbursement 56670 John Mirkovich 488.33 Meeting/Training Expense Reimbursement 56671 Joseph W.Park,Jr. 479.12 Meeting/Training Expense Reimbursement 56672 Steven D.Pelletier 509.53 Meetingrrraining Expense Reimbursement 56673 Wiliam F.Pierce 274.99 Meeting/Training Expense Reimbursement 56674 Michael Reideler 328.15 Meeting/Training Expense Reimbursement 56675 Roy J.Reynolds 306.48 Meeting/Training Expense Reimbursement 56676 Darren J.Schuler 280.18 Meetingrrraining Expense Reimbursement 56677 Robert J.Taylor 507.10 Meeting/Training Expense Reimbursement 56678 Mary S.Thompson 346.00 Meeting/Training Expense Reimbursement 56679 Steven M.Thornburg 462.79 Meeting/Training Expense Reimbursement 56680 Joseph F.Vallone 215.87 Meeting/rraining Expense Reimbursement 56681 Marco Polo S.Velasco 517.76 Meeting/Training Expense Reimbursement 56682 Michael Vuong 530.47 Meeting/Training Expense Reimbursement 56683 Thomas Walker 276.63 Meeting/Training Expense Reimbursement 56684 Lawrence A.Wigington 333.30 Meeting/Training Expense Reimbursement 56685 Robyn A.Wilcox 256.82 Meeting/Training Expense Reimbursement 56686 Morris C.Ying 253.69 Meeting/Training Expense Reimbursement 56687 K&K,Inc. 2,164.36 User Fee Refund Re Septic Tanks 56688 Maclay TR 803.53 User Fee Refund Re Septic Tanks 56689 Orange County Sanitation District 957.02 Petty Cash Reimb. fin/21011c EXHIBIT A G:lexcel.dtaVin\2204APSHARE1Claims Paid RepoM02.031Claims Paid Report-101503.xfs Page 8 of 10 11/10/203 Claims Paid From 10101103 to 10115/03 Warrant No. Vendor Amount Description 56690 Wild Rivers Waterpark 1,629.00 Employee Deposit Transfer 56691 Orange County Sanitation District 610,729.60 Payroll EFT Reimbursement 56692 Orange County Water District 801,877.05 Construction-Joint GWRS Project J-36 56693 Orange County Sanitation District 33,627.28 Worker's Comp.Reimb. 56694 Allied Packing&Rubber,Inc. 1,937.67 Plumbing Supplies 56695 American Airlines 1,761.00 Travel Services 56696 Association of Calif.Water Agencies 190.00 Communications Training Registration 56697 American Telephone&Telegraph Corp. 62.09 Telephone Service 56698 Boxwood Technology,Inc. 125.00 Notices&Ads 56699 BAF Industries 1,531.03 Reconciliation User Fee Refund Program 56700 Court Order 150.00 Wage Garnishment 56701 Consumers Pipe&Supply Co. 27.07 Plumbing Supplies 56702 Court Trustee 69.12 Wage Garnishment 56703 Dawson Company 844.45 Mechanical Parts&Supplies 56704 Dept.of Fish&Game 127.25 Permit-SARI Line Maint. 56705 Electra-Bond,Inc. 80.81 Valve Coating 56706 Employee Benefits Specialists,Inc. 7,898.20 Reimbursed Prepaid Employee Medical&Dependent Care 56707 Employers Group 220.00 On-Site Performance Review Training 56708 Engineering Central 49.99 Notices&Ads 56709 Carla Louise Eroles 445.00 Wage Garnishment 56710 City of Fountain Valley 1,129.00 Building Permit-J-89 56711 Franchise Tax Board 100.00 Wage Garnishment 56712 Franchise Tax Board 175.00 Wage Garnishment 56713 City of Fullerton 225.53 Water Use 56714 Graybar Electric Company 114.06 Electrical Parts&Supplies 56715 City of Huntington Beach 24,036.44 Water Use 56716 Industrial Metal Supply 139.30 Metal 56717 Internal Revenue Service 450.00 Wage Garnishment 56718 Intl.Union of Oper.Eng.AFL-CIO Local 501 3,691.78 Dues Deduction 56719 Ionics Instrument Business Group 421.39 Lab Parts&Supplies 56720 Jaco Electronics 5.08 Electrical Parts&Supplies 56721 John Mangiapane 300.00 Repair Service-Trawl Nets 56722 Maintenance Technology Corp 39.30 Hardware 56723 McMaster-Carr Supply Co. 340.36 Mechanical Parts&Supplies 56724 Midway Mfg&Machining Co. 6.961.00 Repairs&Maintenance Service 56725 Milltronics Go RMB Engineering 4,180.58 Electrical Supplies 56726 The Mission Viejo News,Inc. 1,014.00 Notices&Ads 56727 Moody's Investor's Service 5,500.00 COP Rating Maintenance Fees 56728 Moreland&Associates 3,501.00 Auditing Services MO 3-8-95 56729 National Bond&Trust 2,045.44 U.S.Savings Bonds Payroll Deductions 56730 Orange Fluid System Technologies,Inc. 982.60 Plumbing Parts&Supplies 56731 OCEA 561.61 Dues Deduction 56732 Pack Bell/WorldCom 15.59 Telephone Service 56733 Court Order 40.00 Wage Garnishment 56734 Court Order 296.00 Wage Garnishment 56735 Peace Officers Council of CA 1,566.00 Dues Deduction 56736 PenValve 260.04 Plumbing Parts&Supplies 56737 Pleion Corp.#2 801.13 Reconciliation User Fee Refund Program 56738 Primavera Systems,Inc. 3,840.00 Software Maint. 56739 PAPA 110.00 0&M Training Registration 56740 RBC Transport Dynamics 808.10 Reconciliation User Fee Refund Program 56741 Shureluck Sales&Engineering 156.60 Mechanical Parts&Supplies rnr210nc EXHIBIT A G:\excel.dtaUn\220%APSHARE%Clalms Paid Report\02-03\Claims Paid Report-101503.xis Page 9 of 10 11/10/2003 Claims Paid From 10/01103 to 10/16103 Warrant No. Vendor Amount Description 56742 Court Order 721.50 Wage Garnishment 56743 So.Cal.Gas Company 24.269.17 Natural Gas 56744 South Bay Chrome Sales 23.55 Reconciliation User Fee Refund Program 56745 Southern Califomia Edison 1,390.21 Power 56746 State Board of Equalization 208.91 Underground Petroleum Storage Tank Fee 56747 SBC 20.54 Telephone Services 56748 Thompson Industrial Supply,Inc. 1,558.44 Mechanical Supplies 56749 The Unisource Corporation 555.19 Office Supplies 56750 United Way 305.00 Employee Contributions 56751 Verizon California 6,267.51 Telephone Services 56752 XZX Electronics,Inc. 59.06 Reconciliation User Fee Refund Program 56753 Marc A.Brown 404.30 Meeting/Training Expense Reimbursement 56754 Keith W.Criscuolo 46.00 Meeting/Training Expense Reimbursement 56755 Thomas D.DoDderer 461.73 Meeting/rraining Expense Reimbursement 56756 Mark A.Esquer 144.39 Meeting/Training Expense Reimbursement 56757 Tim H.Hopkins 116.00 Meeting/Training Expense Reimbursement 56758 John D.Linder 230.00 Meeting/Training Expense Reimbursement 56759 Henry E.Lorimer 251.74 Meeting/rraining Expense Reimbursement 56760 Robert Michna 102.33 Meeting/Training Expense Reimbursement 56761 Fred J.O'Brien 320.75 Meeting/Training Expense Reimbursement 56762 Robert Ooten 298.02 Meeting/Training Expense Reimbursement 56763 Rory Rea 112.50 Meeting/Training Expense Reimbursement 56764 Brian K.Reed 366.68 Meeting/Training Expense Reimbursement 56765 Douglas M.Stewart 130.24 Meeting/Training Expense Reimbursement 56766 Michael D.White 250.00 Meeting/rraining Expense Reimbursement 56767 Hughes Associates,Inc. 12,478.80 Prof.Services J-33-1A Total Accounts Payable-Warrants $ 8,742,861.69 Payroll Disbursements 31184-31271 Employee Paychecks $ 135,318.44 Biweekly Payroll 10/01/03 31272-31382 Employee Paychecks 156,703.39 Biweekly Payroll 10/15/03 31383-31392 Interim Paychecks 103,262.35 Retroactive Salary Adjustments,IDEA Awards&Payroll Adjustment 90006-90504 Direct Deposit Statements 874,737.10 Biweekly Payroll 10/01/03 90505-91014 Direct Deposit Statements 938,456.31 Biweekly Payroll 10/15/03 Total Payroll Disbursements $ 2,208,477.59 Wire Transfer Payments JP Morgan Chase Bank $ 30,076.66 September Interest Payment on 1993 Certificates of Participation JP Morgan Chase Bank 131,284.25 September Societe Generale Swap Payment on 1993 Certificates of Participation Total Wire Transfer Payments $ 161,360.91 Total Claims Paid 10101103-10115/03 $ 11,112,700.19 fin/210/Ic EXHIBIT, _ G.lexcel.dtalfin1220WPSHARE1Claims Paid Report102-031CIaims Paid Report-101503.x1s Page 10 of 10 11110/2003 Claims Paid From 10/16/03 to 10131/03 Warrant No. Vendor Amount Description Accounts Payable-Warrants 56768 Atkins Americas,Inc. $ 32,900.00 Professional Services J40.6 56769 Basic Chemical Solutions,L.L.C. 32,133.49 Sodium Bisulfite 56770 Bell Land Surveying 47,575.07 Professional Surveying Services-Various Capital Projects 56771 Black&Veatch Corporation 107,862.06 Engineering Services J-77, J-87,P146-2&P1-76 56772 Brown&Caldwell 86,483.64 Professional Services 1-98 56773 City of Huntington Beach 767,556.75 Cooperative Projects Reimbursements 56774 City of Santa Ana 271,000.00 Cooperative Projects Reimbursements 56775 E.I.Du Pont De Nemours and Company 67,118.00 Painting Maint.Services MO 4-22-98 56776 Environmental Science Associates 51,383.21 Professional Services J40-5 56777 Fortis Benefits Insurance Company 40,758.77 Long-Term&Short-Term Disability Ins.Premium 56778 Hill Brothers 28,522.19 Chemicals-Odor&Corrosion Control-Newport Trunkline 56779 Jazz Semiconductor 43,682.09 Reconciliation User Fee Refund Program 56780 Kemiron Pacific,Inc. 258,277.86 Ferric Chloride MO 9-27-95 56781 Kforce,Inc. 41,927.76 Temporary Employment Services 56782 Knott's Berry Farm Foods 41,290.82 Reconciliation User Fee Refund Program 56783 Lee&Ro,Inc. 38,397.89 Professional Services 5-50,5-51&5-52 56784 Municipal Water Dist.of Orange County 341,337.44 Water Use Efficiency Program MO 9-22-99 56785 MDS Consulting 25,277.01 Prof.Services-Surveying Various Capital Projects 56786 Partners Consulting Services 28,200.00 FIS On-Site Support-One World XE Migration Project 56787 Pioneer Americas,Inc. 455,093.45 Sodium Hypochlorite 56788 Polydyne,Inc. 73,010.72 Cationic Polymer MO 3-11-92 56789 Southern Contracting Company 45,164.00 Construction J-33-1 56790 SPS Technologies 31,588.03 Reconciliation User Fee Refund Program 56791 The Trane Company 37,066.00 Heating&Air Conditioning Installation 56792 Tule RanchlMagan Farms 152,106.30 Residuals Removal MO 3-29-95 56793 U.S.Peroxide 322,558.29 Hydrogen Peroxide 56794 J R Filanc Construction 1,656,973.44 Construction P1-76 56795 J F Shea Construction,Inc. 1,174,230.73 Construction P2-85,J-87&J-35-2 56796 Margate Construction,Inc. 1,858,289.00 Construction P1-37 56797 eSysTek 480.00 Software 56798 Abrasive Engineering Tool&Equipment 91.32 Hardware 56799 Accurate Circuit Engineering 666.96 Reconciliation User Fee Refund Program 56800 Accurate Metal Fabricators,Inc. 324.63 Reconciliation User Fee Refund Program 56801 Accutite Fasteners,Inc. 114.21 Mechanical Parts&Supplies 56802 Adamson Industries 1,805.68 Lab Parts&Supplies 56803 Advance Tech Plating#2 44.26 Reconciliation User Fee Refund Program 56804 Advanced Measurements&Controls,Inc. 3,868.00 Instrument Parts&Supplies 56805 Air Industries Corporation 1,064.09 Reconciliation User Fee Refund Program 56806 Air Industries 7,253.43 Reconciliation User Fee Refund Program 56807 Air Liquide America Corp. 763.13 Specialty Gases 56808 Airco Filter Service 539.27 Fuel Filters 56809 Airgas-West 6.60 Demurrage 56810 Airgas Safety,Inc. 9,031.07 Safety Supplies&Equipment 56811 All Metal Paint Stripping Inc.#2 2,607.23 Reconciliation User Fee Refund Program 56812 Allied Pacific Metal Stamping 881.65 Reconciliation User Fee Refund Program 56813 Alloy Die casting 604.44 Reconciliation User Fee Refund Program 56814 Almatron Electronics 471.32 Reconciliation User Fee Refund Program G:\excel.dta1fn1220%PSHARE1Claims Paid Reportk02-03%Claims Paid Report-103103.xis EXHIBIT B fin/210Ac Page 1 of 10 11110/2003 Claims Paid From 10/16103 to 10/31103 Warrant No. Vendor Amount Description 56815 Alum-A-Therm 109.04 Reconciliation User Fee Refund Program 56816 Aluminum Forge 1,630.15 Reconciliation User Fee Refund Program 56817 Amcor-Sunclipse,Inc. 3,811.57 Reconciliation User Fee Refund Program 56818 American Express 23,160.17 Purchasing Card Program,Misc.Supplies&Services 56819 American Fildelity Assurance Company 132.00 Employee Voluntary Cancer Insurance 56820 American Public Works Association 520.00 Communication Meeting Registration/O&M Membership 56821 Amerimax Building Products,Inc. 830.38 Reconciliation User Fee Refund Program 56822 Ametek Aerospace 18.82 Reconciliation User Fee Refund Program 56823 Anaheim Extrusion Co.,Inc. 176.24 Reconciliation User Fee Refund Program 56824 Anaheim General Hospital 122.35 Reconciliation User Fee Refund Program 56825 City of Anaheim-Water Services 11,064.88 Reconciliation User Fee Refund Program 56826 Analytical Products Group,Inc. 865.00 Lab Supplies 56827 Appleone Employment Service 12,295.33 Temporary Employment Services 56828 Aqua-Con 600.51 Reconciliation User Fee Refund Program 56829 Aquatic Bioassay And Consulting Labs,Inc. 1,550.00 Toxicity Testing 56830 Arnold Electronics#1 4,504.38 Reconciliation User Fee Refund Program 56831 Arrowhead Products 4,286.82 Reconciliation User Fee Refund Program 56832 Autodesk University/Enterprise Events 1,245.00 Planning Meeting Registration 56833 API Basco 2,310.51 Electrical Parts&Supplies 56834 APW Enclosure Systems 3,545.07 Reconciliation User Fee Refund Program 56835 APW Enclosure Systems,LLC(South St) 1,642.45 Reconciliation User Fee Refund Program 56836 ARO Services 146.24 Reconciliation User Fee Refund Program 56837 ASSE American Soc.of Safety Engineers 570.00 Safety&Health Meeting Registration 56838 AWSI 166.00 Department of Transportation Training Program 56839 B.Braun Medical,Inc. 7,357.02 Reconciliation User Fee Refund Program 56840 Basic Chemical Solutions 1,880.69 Sodium Bisulfite 56841 Battery Specialties 261.83 Batteries 56842 Bauer Compressors 152.46 Compressor Parts 56843 Bazz Houston Co. 732.53 Reconciliation User Fee Refund Program 56844 Bearing Inspection,Inc. 89.75 Reconciliation User Fee Refund Program 56845 Beckman Coulter,Inc. 7,296.62 Reconciliation User Fee Refund Program 56846 BioMerieux Vitek,Inc. 219.75 Lab Parts&Supplies 56847 Boeing-Anaheim 12,822.76 Reconciliation User Fee Refund Program 56848 Boeing Company,The 9,324.21 Reconciliation User Fee Refund Program 56849 Bondlogistix,L.L.C. 8,100.00 Prof.Serv.-Preparation of Interim Arbitrage Rebate Report Series 2000E COPS 56850 Brenntag West,Inc. 1,000.78 Janitorial Supplies 56851 Brenton Safety,Inc. 334.03 Safety Supplies 56852 Bristol Industries 1,644.12 Reconciliation User Fee Refund Program 56853 Bush&Associates,Inc. 4,264.00 Surveying Services MO 6-25-97 56854 Cal-Aurum Industries 5.32 Reconciliation User Fee Refund Program 56855 Cal-Glass,Inc. 80.60 Lab Equipment Maint.Service 56856 Cal-Tronics Circuit Inc.-Santa Ana 128.36 Reconciliation User Fee Refund Program 56857 California Automatic Gate 782.19 Automatic Gate Maintenance-Both Plants 56858 California Bank&Trust 5,018.00 Construction J-33-1A,Retention 56859 Caltrol,Inc. 323.25 Mechanical Parts,Supplies&Repairs 56860 Cardlock Fuels 1,093.38 Fueling District Vehicles at Local Gas Stations 56861 Cargill,Inc. 21.45 Reconciliation User Fee Refund Program 56862 Carl Warren&Co. 514.22 Insurance Claims Administrator G:%excel.dta%in1220%PSHARE1Galms Paid Report102-031CIsims Paid Report-103103.xis EXHIBIT 8, _ fin/210Ac Page 2 of 10 11/10/2003 Claims Paid From 10116/03 to 10131103 Warrant No. Vendor Amount Description 56863 Carleton Engineers&Consultants,Inc. 175.01 Engineering Services-Air Quality 56864 Carollo Engineers 14,419.53 Professional Services Pl-60&132-60 56865 Catalina Cylinders 2,635.81 Reconciliation User Fee Refund Program 56866 Ce112CeII 52.09 Communication Equipment 56867 Center for Creative Growth 2,300.00 Professional Services-O&M Management Coaching 56868 Chapman Hospital 348.19 Reconciliation User Fee Refund Program 56869 Cheek Engineering&Stamping 826.16 Reconciliation User Fee Refund Program 56870 City of La Habra 4,500.00 Cooperative Projects Reimbursements 56671 City of Los Alamitos 4,649.06 Connection Fee Duplicate Payment Refund 56872 Cleugh's Rhubarb 18,357.62 Reconciliation User Fee Refund Program 56873 Clickguard Corporation 158.25 Printer Service Agreement 56874 Coast Fire Equipment 226.09 Fire Extinguisher Maintenance&Service 56875 Color Arts,Inc. 1,210.40 Vehicle Decals 56876 Columbia Analytical Services,Inc. 1,100.00 Analyses of Wastewater,Industrial Wastewater&Biosolids 56877 Huntington Beach Medical Center 197.09 Reconciliation User Fee Refund Program 56878 Columbia Wiest Anaheim Medical Center 951.93 Reconciliation User Fee Refund Program 56879 Commercial Roof Management,Inc. 2,000.00 Skylight Replacement 56880 Communications Performance Group,Inc. 9,200.00 Prof.Serv.-Rev.to Elec.Emerg.Oper.Procedures at Pit.1&Load Shedding Proc.at Pit.2 56881 Computer Protection Technology,Inc. 2,984.90 Computer Maintenance 56882 Consolidated Elect.Distributors,Inc. 3,205.52 Electrical Supplies 56883 Consumers Pipe&Supply Co. 314.06 Plumbing Supplies 56884 Control Factors-Seattle,Inc. 994.80 Mechanical Parts&Supplies 56885 Coordinated Wire Rope&Rigging 295.02 Rigging Supplies 56886 Corporate Express Imaging 345.83 Computer Supplies 56887 Corporate Express 925.55 Office Supplies 56888 Cortech Engineering 3,934.22 Pump Supplies 66889 Counterpart Enterprises,Inc. 130.57 Cen Gen Air Filters 56890 County Wholesale Electric Co. 9.09 Electrical Parts&Supplies 56891 Crescent Chemical Co.,Inc. 260.72 Lab Parts&Supplies 56892 Criterion Machine Works 897.94 Reconciliation User Fee Refund Program 56893 Crockett Container Corp. 1,885.46 Reconciliation User Fee Refund Program 56894 Custom Control Sensors 121.02 Electrical Supplies 56895 CEPA Company 223.28 Lab Equipment Maint.Service 56896 CR&R,Inc. 2,205.00 Container Rentals 56897 CRC RIM,Inc. 6,988.46 Reconciliation User Fee Refund Program 56898 CWEA Membership 231.00 Membership-Calif.Water Environment Assoc. 56899 Dapper Tire Co. 587.95 Truck Tires 56900 Data Aire,Inc. 1,212.87 Reconciliation User Fee Refund Program 56901 Day Wireless Systems 1,050.00 Professional Services-Microwave System Repairs 56902 Del Mar Analytical 2,136.00 Analysis of Biosolids and Wastewater 56903 Delphi Automotive Systems,L.L.C. 17,310.13 Reconciliation User Fee Refund Program 56904 Derm Cosmetic Labs,Inc. 1,878.66 Reconciliation User Fee Refund Program 56905 Diamond H Recognition 72.44 Employee Service Awards 56906 DigiPhoto 10.95 Photographic Services 56907 Dionex Corporation 1,895.21 Lab Parts&Supplies 56908 Ditty Drum Co.,Inc. 93.13 Reconciliation User Fee Refund Program 56909 Ducommun Aerostructures 3,813.53 Reconciliation User Fee Refund Program 56910 Dunn-Edwards Corporation 37.93 Paint Supplies G:lexcel.dtalfin12MtAPSHARE1Gaims Paid Reporr102-0310aims Paid Report-103103.xts EXHIBIT B firv21011c Page 3 of 10 11/10/2003 Claims Paid From 10116/03 to 10131/03 Warrant No. Vendor Amount Description 57007 Milbank West,Inc. 385.03 Reconciliation User Fee Refund Program 57008 Millett Industries 146.51 Reconciliation User Fee Refund Program 57009 Mission Uniform Service 2,973.08 Uniform Rentals 57010 Monogram Systems 2,813.77 Reconciliation User Fee Refund Program 57011 Murnetta Circuits 463.98 Reconciliation User Fee Refund Program 57012 MAG-TROL,Inc. 2,998.68 Electrical Supplies 57013 Nelco Products,Inc. 2,522.89 Reconciliation User Fee Refund Program 57014 NetVersant of Southern California 3,675.43 Installation of Camera at GWRS Gate-J-36 57015 Newark Electronics 331.38 Electrical Parts&Supplies 57016 Newport Corporation 11,007.63 Reconciliation User Fee Refund Program 57017 Nickey Petroleum Co.,Inc. 1,069.17 Machine Oil 57018 Ninyo&Moore Corporate Accounting 10,081.16 Professional Services-Materials Testing,Inspection&Geotechnical Engineering 57019 The Norco Companies 170.78 Mail Delivery Service 57020 Nu-Way Laser Engraving 269.10 Steel Tags 57021 Office Depot Business Services Div. 1,012.42 Office Supplies 57022 Ohmart/VEGA Corp. 2,133.18 Freight -Hazardous Materials 57023 OneSource Distributors,Inc. 353.78 Electrical Parts&Supplies 57024 Ora Beth Scott 76.51 Reconciliation User Fee Refund Program 57025 Orange County Hose Company 33.60 Hose Supplies&Parts 57026 Orange Courier 189.00 Courier Services 57027 Orange Fluid System Technologies,Inc. 1,646.64 Plumbing Parts&Supplies 57028 Oxygen Service Company 2,469.99 Specialty Gases 57029 P.L.Hawn Company,Inc. 1,027.94 Electrical Supplies 57030 Pacific Mechanical Supply 560.90 Plumbing Supplies 57031 Pacifica Aerospace Corp. 1,867.43 Reconciliation User Fee Refund Program 57032 Parker Hannifin Corporation 126.01 Mechanical Parts&Supplies 57033 Parker Supply Company 1,268.92 Mechanical Parts&Supplies 57034 Peak Technologies 2,485.90 Lab Parts&Supplies 57035 PenValve 426.75 Mechanical Parts&Supplies 57036 Pepsi-Cola Bottling 9,139.89 Reconciliation User Fee Refund Program 57037 Performance Powder,Inc. 93.85 Reconciliation User Fee Refund Program 57038 Perkin Elmer Corporation 474.67 Lab Parts&Supplies 57039 Perma Pure,Inc. 217.22 Fillers 57040 Pico Farad,Inc. 838.96 Reconciliation User Fee Refund Program 57041 Pilkington Aerospace 10,564.63 Reconciliation User Fee Refund Program 57042 Pitney Bowes 538.35 Repairs&Maintenance Service-Pitney Bowes Letter Opener 57043 Powdercoat Services 88.73 Reconciliation User Fee Refund Program 57044 Powdercoat Services#2 287.64 Reconciliation User Fee Refund Program 57045 Powdercoat Services#4 25.62 Reconciliation User Fee Refund Program 57046 Power Electro Supply Co.,Inc. 232.12 Electrical Supplies 57047 Precision Painting 731.86 Reconciliation User Fee Refund Program 57048 California Fineblanking Corp. 204.76 Reconciliation User Fee Refund Program 57049 Precon,Inc. 104.31 Reconciliation User Fee Refund Program 57050 Primary Source Office Furnishings,Inc. 15,435.19 Office Furniture 57051 Propipe 815.30 CCTV Sewerline Inspection 57052 Prudential Overall Supply 135.22 Reconciliation User Fee Refund Program 57053 Pure Chem Products Co. 111.76 Reconciliation User Fee Refund Program 57054 Putzmeister-America 328.79 Mechanical Parts&Supplies G:lexcel.dta1fin12201APSHARMClaims Paid Report102-031Claims Paid Report-103103.xls EXHIBIT 13 fin121011c Page 6 of 10 11110/2003 Claims Paid From 10116/03 to 10131103 Warrant No. Vendor Amount Description 56863 Carleton Engineers&Consultants,Inc. 175.01 Engineering Services-Air Quality 56864 Carollo Engineers 14,419.53 Professional Services P1-60&132-60 56865 Catalina Cylinders 2,635.81 Reconciliation User Fee Refund Program 56866 Ce112CeII 52.09 Communication Equipment 56867 Center for Creative Growth 2,300.00 Professional Services-0&M Management Coaching 56868 Chapman Hospital 348.19 Reconciliation User Fee Refund Program 56869 Cheek Engineering&Stamping 826.16 Reconciliation User Fee Refund Program 56870 City of La Habra 4,500.00 Cooperative Projects Reimbursements 56871 City of Los Alamitos 4,649.06 Connection Fee Duplicate Payment Refund 56872 Cleugh's Rhubarb 18,357.62 Reconciliation User Fee Refund Program 56873 Clickguard Corporation 158.25 Printer Service Agreement 56874 Coast Fire Equipment 226.09 Fire Extinguisher Maintenance&Service 56875 Color Arts,Inc. 1,210.40 Vehicle Decals 56876 Columbia Analytical Services,Inc. 1,100.00 Analyses of Wastewater,Industrial Wastewater&Biosolids 56877 Huntington Beach Medical Center 197.09 Reconciliation User Fee Refund Program 56878 Columbia West Anaheim Medical Center 951.93 Reconciliation User Fee Refund Program 56879 Commercial Roof Management,Inc. 2,000.00 Skylight Replacement 56880 Communications Performance Group,Inc. 9,200.00 Prof.Serv.-Rev.to Elec.Emerg.Oper.Procedures at Pit.1&Load Shedding Proc.at Pit.2 56881 Computer Protection Technology,Inc. 2.984.90 Computer Maintenance 56882 Consolidated Elect.Distributors,Inc. 3,205.52 Electrical Supplies 56883 Consumers Pipe&Supply Co. 314.06 Plumbing Supplies 56884 Control Factors-Seattle,Inc. 994.80 Mechanical Parts&Supplies 56885 Coordinated Wire Rope&Rigging 295.02 Rigging Supplies 56886 Corporate Express Imaging 345.83 Computer Supplies 56887 Corporate Express 925.55 Office Supplies 56888 Cortech Engineering 3,934.22 Pump Supplies 56889 Counterpart Enterprises,Inc. 130.57 Cen Gen Air Filters 56890 County Wholesale Electric Co. 9.09 Electrical Parts&Supplies 56891 Crescent Chemical Co.,Inc. 260.72 Lab Parts&Supplies 56892 Criterion Machine Works 897.94 Reconciliation User Fee Refund Program 56893 Crockett Container Corp. 1,885A6 Reconciliation User Fee Refund Program 56894 Custom Control Sensors 121.02 Electrical Supplies 56895 CEPA Company 223.28 Lab Equipment Maint.Service 56896 CR&R,Inc. 2,205.00 Container Rentals 56897 CRC RIM,Inc. 6.988.46 Reconciliation User Fee Refund Program 56898 CWEA Membership 231.00 Membership-Calif.Water Environment Assoc. 56899 Dapper Tire Co. 587.95 Truck Tires 56900 Data Aire,Inc. 1,212.87 Reconciliation User Fee Refund Program 56901 Day W4reless Systems 1.050.00 Professional Services-Microwave System Repairs 56902 Del Mar Analytical 2,136.00 Analysis of Biosolids and Wastewater 56903 Delphi Automotive Systems,L.L.C. 17,310.13 Reconciliation User Fee Refund Program 56904 Derm Cosmetic Labs,Inc. 1,878.66 Reconciliation User Fee Refund Program 56905 Diamond H Recognition 72.44 Employee Service Awards 56906 DigiPhoto 10.95 Photographic Services 56907 Dionex Corporation 1,895.21 Lab Parts&Supplies 56908 Ditty Drum Co.,Inc. 93.13 Reconciliation User Fee Refund Program 56909 Ducommun Aerostructures 3,813.53 Reconciliation User Fee Refund Program 56910 Dunn-Edwards Corporation 37.93 Paint Supplies G:lexcel.dta\in\2201APSHARE1Gaims Paid Report\02-0310aims Paid Report-103103.xts EXHIBIT B fn/21011c Page 3 of 10 11/10/2003 Claims Paid From 10/16103 to 10131103 Warrant No. Vendor Amount Description 56911 E.Sam Jones Distributors,Inc. 916.96 Electrical Supplies 56912 Eaton Corporation/MSC Products 2.009.09 Reconciliation User Fee Refund Program 56913 El Metate,Inc. 5,827.93 Reconciliation User Fee Refund Program 56914 Electro Numerics,Inc. 1.417.03 Electrical Supplies 56915 Electro-Test,Inc. 2,100.00 Professional Services-Electrical Acceptance Testing 56916 Embee,Inc.#1 1,480.61 Reconciliation User Fee Refund Program 56917 Embee,Inc.#2 206.13 Reconciliation User Fee Refund Program 56918 Embee,Inc.#3 1,179.75 Reconciliation User Fee Refund Program 56919 Empire Pipe Cleaning&Equipment,Inc. 15,240.38 Sewer Line Cleaning&Testing 56920 Employee Benefits Specialists,Inc. 607.60 Reimbursed Prepaid Employee Medical&Dependent Care 56921 Enchanter,Inc. 3,600.00 Ocean Monitoring&Outfall Inspection&Maintenance 56922 Engravers Ink Company 32.90 Reimbursed User Fee Refund Program 56923 Environmental Express 99.88 Lab Supplies 56924 Environmental Microbiology Consulting 7,310.00 Professional Services J-40-6 56925 Environmental Resource Association 1,162.90 Lab Supplies 56926 Fabrication Concepts Corporation 4,148.49 Reconciliation User Fee Refund Program 56927 FedEx Corporation 100.59 Air Freight 56928 Fineline Circuits&Tech. 49.22 Reconciliation User Fee Refund Program 56929 Fisher Scientific Company,L.L.C. 7,065.07 Lab Parts&Supplies 56930 Flat and Vertical,Inc. 135.00 Concrete Cutting 56931 Foodcraft Coffee&Refreshment Services 732.25 Meeting Supplies 56932 Fountain Valley Camera 9.84 Photographic Services 56933 Franklin Covey 94.55 Office Supplies 56934 Fry's Electronics 115.97 Computer Supplies 56935 Fullerton Plating 102.69 Reconciliation User Fee Refund Program 56936 FMH Investor Group 2,956.20 Reconciliation User Fee Refund Program 56937 Gardner Lithograph OOB'D 7/31/03 1,279.22 Reconciliation User Fee Refund Program 56938 Garratt-Callahan Company 113.14 Chemicals 56939 Getinge Castle 532.00 lab Instrument Maintenance 56940 Gierlich-Mitchell,Inc. 6,605.08 Mechanical Parts&Supplies 56941 Golden State Controls 358.14 Electrical Parts&Supplies 56942 Gomtech Electronics 216.48 Reconciliation User Fee Refund Program 56943 Gorilla's Polishing and Plating Corp. 49.06 Reconciliation User Fee Refund Program 56944 Grafix Training&Consulting 215.00 On-Site Acrobat Training 56945 Graybar Electric Company 14,481.60 Computer Soltware/Hardware 56946 Guy L.Warden&Sans 302.09 Pump Supplies 56947 H Koch&Sons 2,569.83 Reconciliation User Fee Refund Program 56948 Hamilton Materials 972.46 Reconciliation User Fee Refund Program 56949 Harbor Truck Bodies,Inc. 106.53 Reconciliation User Fee Refund Program 56950 Harold Primrose Ice 74.00 Ice For Samples 56951 Harte-Hanks Shoppers 4,724.29 Reconciliation User Fee Refund Program 56952 The Hartwell Corporation 507.81 Reconciliation User Fee Refund Program 56953 Hasco Oil Co.,Inc. 193.73 Lube Oil 56954 Hawk Industrial Uniform 1,009.26 Reconciliation User Fee Refund Program 56955 Heat Technology Products 10,469.14 Mechanical Parts&Supplies 56956 Hilti,Inc. 1,092.55 Tools 56957 The Holman Group 897.48 Employee Assistance Program Premium 56958 Home Depot 1,271.64 Misc.Repair&Maintenance Material G:lexcel.dtatn12201APSHARE%Claims Paid Reporl102-0MCIaims Paid Report-103103.)ds EXHIBIT fin/21011c Page 4 of 10 11/1012003 Claims Paid From 10/16/03 to 10131103 , Warrant No. Vendor Amount Description 56959 Hub Auto Supply 247.77 Vehicle Parts&Supplies 56960 Hyatt Die Casting&Engineering Corp. 1,853.01 Reconciliation User Fee Refund Program 56961 Industrial Distribution Group 481.33 Electrical&Painting Supplies 56962 Industrial Metal Supply 120.15 Metal 56963 Intergraph Corporation 387.90 Software Maint.Agreement 56964 Interstate Batteries of Cal Coast 1,016.19 Batteries for Vehicles&Carts 56965 Invensys Systems,Inc. 362.60 Instrument Supplies 56966 Irvine Pipe&Supply 756.44 Mechanical Parts&Supplies 56967 Irvine Ranch Water District 41.70 Water Use 56968 Irvine Sensors Corp. 4,222.30 Reconciliation User Fee Refund Program 56969 Jamison Engineering Contractors,Inc. 11,128.03 Prof.Services P2-74&Various Repairs&Maintenance Services 56970 Jay's Catering 3,122.52 Meeting Expenses 56971 Jefferson Smurfit Corp.(U.S.) 2,261.68 Reconciliation User Fee Refund Program 56972 Jellco Container,Inc. 1,092.65 Reconciliation User Fee Refund Program 56973 Johnson Controls Inc. 11,899.64 Reconciliation User Fee Refund Program 56974 Johnstone Supply 696.56 Electrical Supplies 56975 Kelly Paper 99.51 Paper 56976 Kenlen Specialities,Inc. 130.85 Reconciliation User Fee Refund Program 56977 Kent Automotive 326.31 Automotive Parts&Supplies 56978 Kirkhill Rubber 2,689.03 Reconciliation User Fee Refund Program 56979 Kirkhill Rubber Company(South) 11,215.28 Reconciliation User Fee Refund Program 56980 KCA Electronics,Inc. 343.84 Reconciliation User Fee Refund Program 56981 KW Communications 5,603.31 Community Outreach Re Bushard Trunkline Replacement Project 56982 Leach Corp. 2,987.09 Reconciliation User Fee Refund Program 56983 Los Angeles Times 9,540.00 Reconciliation User Fee Refund Program 56984 Lucci's Gourmet Foods,Inc. 230.18 Meeting Expense 56985 M.S.Bellows 140.63 Reconciliation User Fee Refund Program 56986 Marden Susco,Inc. 534.63 Mechanical Parts&Supplies 56987 Margaretis Textile Service 3,532.20 Reconciliation User Fee Refund Program 56988 Mark Optics,Inc. 267.92 Reconciliation User Fee Refund Program 56989 Maruchan,Inc. 16,878.11 Reconciliation User Fee Refund Program 56990 Mask Technology,Inc. 16.96 Reconciliation User Fee Refund Program 56991 Material Control,Inc. 1,515.66 Mechanical Parts&Supplies 56992 Mayer,Brown,Rowe&Maw,L.L.P. 5,000.00 Legislative Advocacy Services 56993 Mc Junkin Corp—Ontario Branch 125.31 Plumbing Supplies 56994 McMaster-Carr Supply Co. 377.13 Mechanical&Lab Parts&Supplies 56995 Mead Westvaco Packaging 11,735.75 Reconciliation User Fee Refund Program 56996 Mec Analytical System 8,433.00 Toxicity Analysis 56997 Medeva Pharmaceuticals CA,Inc. 2,564.58 Reconciliation User Fee Refund Program 56998 Medlin Controls Co. 1,454.58 Instrument Supplies 56999 Medtronic Heartvalve Division,Inc. 7,226.76 Reconciliation User Fee Refund Program 57000 Mesa Consolidated Water District 3,528.82 Reconciliation User Fee Refund Program 57001 Michael Asner Consulting 1,350.00 Prof.Serv.-Develop RFP Handbook &Internal Policies&Procedures for Purchasing Div. 57002 Micrometals,Inc.#2 944.22 Reconciliation User Fee Refund Program 57003 MicroSemi 1,438.63 Reconciliation User Fee Refund Program 57004 Microsemi Intergrated Products 1,587.77 Reconciliation User Fee Refund Program 57005 Mid-West Associates 250.38 Pump Supplies 57006 Midway Mfg.&Machining Co. 6.734.38 Mechanical Parts&Supplies G:lexcel.dtal in1220%PSHARE1Gaims Paid Report102-03tClaims Paid Report-103103.xis EXHIBIT B firv21011c Page 5 of 10 11/10/2003 Claims Paid From 10/16/03 to 10/31/03 Warrant No. Vendor Amount Description 57007 Milbank West,Inc. 385.03 Reconciliation User Fee Refund Program 57008 Millett Industries 146.51 Reconciliation User Fee Refund Program 57009 Mission Uniform Service 2,973.08 Uniform Rentals 57010 Monogram Systems 2,813.77 Reconciliation User Fee Refund Program 57011 Murrietta Circuits 463.98 Reconciliation User Fee Refund Program 57012 MAG-TROL,Inc. 2,998.68 Electrical Supplies 57013 Nelco Products,Inc. 2,522.89 Reconciliation User Fee Refund Program 57014 NetVersant of Southern California 3,675.43 Installation of Camera at GWRS Gate-J-36 57015 Newark Electronics 331.38 Electrical Parts&Supplies 57016 Newport Corporation 11,007.63 Reconciliation User Fee Refund Program 57017 Nickey Petroleum Co.,Inc. 1,069.17 Machine Oil 57018 Ninyo&Moore Corporate Accounting 10,081.16 Professional Services-Materials Testing,Inspection&Geotechnical Engineering 57019 The Norco Companies 170.78 Mail Delivery Service 57020 Nu-Way Laser Engraving 269.10 Steel Tags 57021 Office Depot Business Services Div. 1.012.42 Office Supplies 57022 Ohmart/VEGA Corp. 2,133.18 Freight -Hazardous Materials 57023 OneSource Distributors,Inc. 353.78 Electrical Parts&Supplies 57024 Ora Beth Scott 76.51 Reconciliation User Fee Refund Program 57025 Orange County Hose Company 33.60 Hose Supplies&Parts 57026 Orange Courier 189.00 Courier Services 57027 Orange Fluid System Technologies,Inc. 1,646.64 Plumbing Parts&Supplies 57028 Oxygen Service Company 2,469.99 Specialty Gases 57029 P.L.Hawn Company,Inc. 1,027.94 Electrical Supplies 57030 Pacific Mechanical Supply 560.90 Plumbing Supplies 57031 Pacifica Aerospace Corp. 1,867.43 Reconciliation User Fee Refund Program 57032 Parker Hannifin Corporation 126.01 Mechanical Parts&Supplies 57033 Parker Supply Company 1,268.92 Mechanical Parts&Supplies 57034 Peak Technologies 2,485.90 Lab Parts&Supplies 57035 PenValve 426.75 Mechanical Parts&Supplies 57036 Pepsi-Cola Bottling 9,139.89 Reconciliation User Fee Refund Program 57037 Performance Powder,Inc. 93.85 Reconciliation User Fee Refund Program 57038 Perkin Elmer Corporation 474.67 Lab Parts&Supplies 57039 Perma Pure,Inc. 217.22 Filters 57040 Pico Farad,Inc. 838.96 Reconciliation User Fee Refund Program 57041 Pilkington Aerospace 10,564.63 Reconciliation User Fee Refund Program 57042 Pitney Bowes 538.35 Repairs&Maintenance Service-Pitney Bowes Letter Opener 57043 Powdercoat Services 88.73 Reconciliation User Fee Refund Program 57044 Powdercoat Services#2 287.64 Reconciliation User Fee Refund Program 57045 Powdercoat Services#4 25.62 Reconciliation User Fee Refund Program 57046 Power Electro Supply Co.,Inc. 232.12 Electrical Supplies 57047 Precision Painting 731.86 Reconciliation User Fee Refund Program 57048 California Fineblanking Corp. 204.76 Reconciliation User Fee Refund Program 57049 Precon,Inc. 104.31 Reconciliation User Fee Refund Program 57050 Primary Source Office Furnishings,Inc. 15,435.19 Office Furniture 57051 Propipe 815.30 CCTV Sewerline Inspection 57052 Prudential Overall Supply 135.22 Reconciliation User Fee Refund Program 57053 Pure Chem Products Co. 111.76 Reconciliation User Fee Refund Program 57054 Putzmeister-America 328.79 Mechanical Parts&Supplies G:kexcel.dtalfin12201APSHARE1Claims Paid Reportt02-031Claims Paid Report-103103.x1s EXHIBIT 3 _ fin/210Ac Page 6 of 10 11110P2003 F Claims Paid From 10/16103 to 10/31103 Warrant No. Vendor Amount Description 57055 PC Magazine 69.97 Subscription 57056 PCG Industries 1,675.00 Mechanical Repairs&Maintenance Service 57057 PSI 325.54 Plumbing Parts&Supplies 57058 Quality Aluminum Forge 426.53 Reconciliation User Fee Refund Program 57059 R.W.Beck 976.80 Professional Services P1-90 57060 R.L.Abbott&Associates 3,000.00 Kern County Biosolids Consulting Services 57061 Railmakers,Inc. 40.79 Reconciliation User Fee Refund Program 57062 Rainbow Disposal Co. 5,826.40 Trash Removal 57063 Rainin Instrument,L.L.C. 119.53 Lab Parts&Supplies 57064 Reid Metal Finishing 391.33 Reconciliation User Fee Refund Program 57065 Reliastar Bankers Security Life Ins. 9,925.22 Employee Life Ins.Premium,Short-Term Disability&Cancer Ins.Payroll Deductions 57066 RemedyTemp,Inc. 3,219.66 Temporary Employment Services 57067 Retrofit Parts&Components,Inc. 652.19 Mechanical Parts&Supplies 57068 Revere Transducers 512.60 Reconciliation User Fee Refund Program 57069 Ricoh Business System 16.18 Color Copier Lease&Maintenance 57070 Ricoh Electronics#2 6,044.56 Reconciliation User Fee Refund Program 57071 Rigifiex Technology,Inc. 144.72 Reconciliation User Fee Refund Program 57072 RBF Consulting 24,459.69 Engineering Services 2-41 57073 RM Automation c/o RM Controls 97.39 Instrument Supplies 57074 RS Hughes Co,Inc. 50.88 Paint Supplies 57075 RTR Industries,L.LC. 590.10 Reconciliation User Fee Refund Program 57076 S&J Supply Co.,Inc. 137.52 Plumbing Parts&Supplies 57077 Safety-Kleen 485.66 Parts Washer Lease&Service 57078 Sancon Engineering,Inc. 3,450.00 Construction-Manhole Raising on Ellis Ave. 57079 Santana Services 19.96 Reconciliation User Fee Refund Program 57080 Scientific Spray Finishes 80.25 Reconciliation User Fee Refund Program 57081 Scisorek&Sons Flavors,Inc. 1,565.68 Reconciliation User Fee Refund Program 57082 Sechrist Industries Inc. 983.92 Reconciliation User Fee Refund Program 57083 Semicoa 281.14 Reconciliation User Fee Refund Program 57084 Serrano Water District 660.61 Reconciliation User Fee Refund Program 57085 Shepard Brothers,Inc. 9,272.07 Reconciliation User Fee Refund Program 57086 Shureluck Sales&Engineering 987.84 Mechanical Parts&Supplies 57087 Siemens Building Technologies 145.00 Professional Services-Admin Bldg.Automation System 57088 Sierra Spring Water 933.51 Reconciliation User Fee Refund Program 57089 Sioux Honey Assoc Co-op 11,818.77 Reconciliation User Fee Refund Program 57090 Snap-On Tools,Inc. 148.85 Tools 57091 So California Edison 1,656.63 Reconciliation User Fee Refund Program 57092 SoftChoice 2,715.04 Software 57093 South Coast Air Quality Management Dist. 3,349.44 Annual Emission,Operation&Misc.Fees 57094 South Coast Circuits,Inc. 654.02 Reconciliation User Fee Refund Program 57095 South Coast Oil Company 193.14 Reconciliation User Fee Refund Program 57096 Sparkletts 1,522.17 Drinking Water/Cooler Rentals 57097 St.John Knits,Inc. 10,991.48 Reconciliation User Fee Refund Program 57098 Stanley Steamer International,Inc. 510.00 Carpet Cleaning Services 57099 Summit Steel 101.25 Metal 57100 Sunclipse,Inc./Corru Kraft 21,441.08 Reconciliation User Fee Refund Program 57101 Sunset Ford 81.39 Auto Parts&Service 57102 Sunset Industrial Parts 158.41 Mechanical Supplies G:lexcel.dtalfin1220lAPSHARE1Claims Paid Report\02-030aims Paid Report-103103.xls EXHIBIT B fin/210Rc Page 7 of 10 11/10/2003 Claims Paid From 10/16103 to 10/31103 Warrant No. Vendor Amount Description 57103 Symcas-TSG 1,381.60 SCADA System VAX Service Agreement 57104 South Coast Environmental Co. 7,193.02 Cen Gen Emissions Testing Service 57105 SKC-West,Inc. 832.72 Safety Supplies 57106 SPX Valves&Control 2,265.33 Valves 57107 Tac West,Inc. 2,988.01 Reconciliation User Fee Refund Program 57108 Taormina Industries,Inc. 169.26 Reconciliation User Fee Refund Program 57109 Taormina Industries,Inc.94 379.31 Reconciliation User Fee Refund Program 57110 Taylor-Dunn 3,995.61 Electric Cart Parts 57111 Teletrac,Inc. 245.00 Monthly Air-Time Service Fee&Software/Hardware Maint.For Vehicle Tracking Sys. 57112 Terminix International Co.#2474 385.00 Pest Control 57113 Tetra Tech,Inc. 2,260.93 Professional Services 7-37 57114 Textron Aerospace 3.847.24 Reconciliation User Fee Refund Program 57115 The Walking Man,Inc. 1,050.00 Public Outreach Program-Bushard Project Door Hangers 57116 Thermal-Vac Technology 9.75 Reconciliation User Fee Refund Program 57117 Thermco Systems,Inc. 996.00 Reconciliation User Fee Refund Program 57118 Thompson Industrial Supply,Inc. 4,914.12 Mechanical Supplies 57119 ThyssenKrupp Elevator 2,321.00 Elevator Maintenance 57120 Tierra Tractor 2,700.00 Tree Planting Services 57121 Times Community News 106.25 Notices&Ads 57122 Tony's Lock&Safe Service&Sales 76.70 Locks&Keys 57123 Townsend Public Affairs 5,000.00 Legislative&Executive Advocate for Grant Funding 57124 Toytoa Racing Development#2 1,560.45 Reconciliation User Fee Refund Program 57125 Transline Technology,Inc. 27.66 Reconciliation User Fee Refund Program 57126 Trim-Lok 234.41 Reconciliation User Fee Refund Program 57127 Truck&Auto Supply,Inc. 103.26 Truck&Auto Parts 57128 Truesdail Laboratories,Inc. 50.00 Analysis of Biosolids and Wastewater 57129 City of Tustin Water Service 4,268.41 Reconciliation User Fee Refund Program 57130 Teksystems 20,915.00 Temporary Employment Services 57131 TTM Technologies,Inc. 279.80 Reconciliation User Fee Refund Program 57132 US Filter Corporation 280.00 Service Agreement-Lab Purification System 57133 U.W.M.C.Hospital Corp.-Anaheim 244.19 Reconciliation User Fee Refund Program 57134 Ultra Scientific 122.50 Lab Supplies 57135 Ultra Wheel Company 538.82 Reconciliation User Fee Refund Program 57136 United Circuit Technology 1,173.54 Reconciliation User Fee Refund Program 57137 United Parcel Service 27.19 Parcel Services 57138 Universal Circuits,Inc.' 860.64 Reconciliation User Fee Refund Program 57139 The Vantage Group,L.L.C. 12,440.00 Temporary Employment Service 57140 Vapex,Inc. 11,296.00 Instrument Parts,Supplies&Maintenance 57141 Velie Circuits,Inc. 1,003.77 Reconciliation User Fee Refund Program 57142 Vencor,Inc. 8,797.52 Reconciliation User Fee Refund Program 57143 Verne's Plumbing 7,498.25 Service Contract-Backflow Device Repairs&Lab Waterline Repairs 57144 Villa Park Orchards Assoc. 777.88 Reconciliation User Fee Refund Program 57145 VWR Scientific Products Corporation 2,899.95 Lab Supplies 57146 West American Rubber Company 7,666.50 Reconciliation User Fee Refund Program 57147 Weyerhauser Company 20,661.45 Reconciliation User Fee Refund Program 57148 Wfnonics 1.760.14 Reconciliation User Fee Refund Program 57149 Wnonics(Brea) 54.63 Reconciliation User Fee Refund Program 57150 Wintec,L.L.C. 39.18 Reconciliation User Fee Refund Program G:lexcel.dtalfinl2201APSHARE1Claims Paid Reportl02-031CIalms Paid Report-103103.xls EXHIBIT B _ finr210nc Page 8 of 10 11110r2003 Claims Paid From 10116/03 to 10/31103 Warrant No. Vendor Amount Description 57151 Xerox Corp-OMNI 21.00 Fax Lease 57152 Xerox Corporation 11.620.94 Fax&Copier Leases 57153 Zymark Corporation 10,000.00 Service Agreement-Lab Zymate Robotic System 57154 Deon M.Carrico 298.65 MeetinglTraining Expense Reimbursement 57155 Marilyn M.Farnsworth 404.30 Meetingfrraining Expense Reimbursement 57156 Victoria L.Henn 116.68 Meetingfrraining Expense Reimbursement 57157 Orange County Sanitation District 911.98 Petty Cash Reimb. 57158 Airgas Safety 305.03 Safety Supplies&Equipment 57159 ASSE American Sec.of Safety Engineers 1,120.00 Meetingffraining Expense Reimbursement 57160 American Telephone&Telegraph Corp. 1,252.58 Telephone Service 57161 American Telephone&Telegraph Corp. 393.27 Telephone Service 57162 AT&T Wireless Services-Airtime 301.92 Cellular Airtime 57163 BNB Engineering,Inc. 1,328.00 Construction 11-22 57164 Carl Warren&Co. 305.65 Insurance Claims Administrator 57165 Center For Urban Infrasructure Comm. 215.00 Air Quality Meeting Registration 57166 Communications Performance Group,Inc. 7,900.00 Prof.Serv.-Develop Chemical Emergency Operating Procedures 57167 Compressor Components of California 5,301.30 Mechanical Paris&Supplies 57168 Corporate Express 83.68 Office Supplies 57169 County of Orange-Auditor Controller 33.00 Encroachment Permit 7-36 57170 Court Trustee 69.12 Wage Garnishment 57171 CPI International 748.87 Lab Supplies 57172 CWEA-SARBS,Inc. 65.00 Operations Meeting Registration 57173 Department of Motor Vehicles 127.00 Vehicle Registration 57174 Employee Benefits Specialists,Inc. 7,898.20 Reimbursed Prepaid Employee Medical&Dependent Care 57175 Five Star Metals,Inc. 343.70 Mechanical Parts&Supplies 57176 Franchise Tax Board 100.00 Wage Garnishment 57177 Internal Revenue Service 450.00 Wage Garnishment 57178 Jamison Engineering Contractors,Inc. 12,714.30 Professional Services-Removal of Caustic Tank at Scrubbers H&1 57179 League Of CA Cities 435.00 Membership 57180 McMaster-Carr Supply Co. 2,510.56 Plumbing Parts,Supplies&Tools 57181 Midway Mfg&Machining Co. 2,160.39 Professional Services-Install(3)Liners In Air Compressor Cylinders 57182 Mobile Air Conditioning Society 200.00 Membership 57183 Michael D.Moore 224.98 Meeting/Training Expense Reimbursement 57184 National Bond&Trust 2,045.44 U.S.Savings Bonds Payroll Deductions 57185 The Orange County Register 11,360.09 Reconciliation User Fee Refund Program 57186 Orange Fluid System Technologies,Inc. 188.24 Plumbing Parts&Supplies 57187 OCEA 580.11 Dues Deduction 57188 Parker Hannifin Corporation 58.43 Regulator Filters 57189 PenValve 224.91 Mechanical Parts&Supplies 57190 Piatecorp#2 170.96 Reconciliation User Fee Refund Program 57191 Primary Source Office Fumishings,Inc. 10,715.79 Office Furniture 57192 Ricoh Electronics 270.37 Reconciliation User Fee Refund Program 57193 Tod W.Ridgeway 383.75 Meeting/Training Expense Reimbursement 57194 Shureluck Sales&Engineering 80.91 Mechanical Parts&Supplies 57195 Society for HR Management 160.00 Membership 57196 South Coast Circuits 94 1,845.49 Reconciliation User Fee Refund Program 57197 Southern California Edison 34.60 Power 57198 Spinitar 25.00 Freight G:lexcel.dtalfin12201APSHARE1Clafms Paid Reportk02-031CIaims Paid Report-103103.xls EXHIBIT B fin/210nc Page 9 of 10 11/10/2003 Claims Paid From 10/16103 to 10/31103 Warrant No. Vendor Amount Description 57199 Summit Steel 461.16 Metal 57200 SBC 1,092.63 Telephone Services 57201 United Way 305.00 Employee Contributions 57202 Valverde Construction,Inc. 5,319.14 Construction-Sewertine Repairs at Newport Beach 57203 Verizon California 1,185.81 Telephone Services 57204 Verteq Process Systems 870.06 Reconciliation User Fee Refund Program 57205 Michael J.Barrett 144.26 Meeting/Training Expense Reimbursement 57206 Shabbir S.Basrai 137.93 Meeting/Training Expense Reimbursement 57207 Michael J.Boess 297.60 Meeting/Training Expense Reimbursement 57208 James M.Elo 167.52 Meeting/Training Expense Reimbursement 57209 Darrell S.Ennis 202.65 Meeting/Training Expense Reimbursement 57210 Mila S.Kleinbergs 267.80 Acoustic Enclosure for Ultrasonic Test Unit 57211 Matthew P.Smith 1,502.93 Meeting/Training Expense Reimbursement 57212 Moms C.Ying 1,893.41 Meeting/Training Expense Reimbursement 57213 Amezcua,Gerardo 2,095.13 Employee Computer Loan Program 57214 Castillo,Mark&Fry's Electronics 1,520.00 Employee Computer Loan Program 57215 McElroy,Tomm 1,214.85 Employee Computer Loan Program 57216 Ralph,Allen 2,064.68 Employee Computer Loan Program 57217 Grande Tortilla 30,414.84 Reconciliation User Fee Refund Program 57218 Orange County Business Council 50,000.00 Membership 57219 Orange County Sanitation District 680,065.30 Payroll EFT Reimbursement 57220 Southern California Edison 139,346.46 Power 57221 Unity Constructors 6.572.30 Construction 7-14-4,Retention Total Accounts Payable-Warrants $ 10,103,534.83 Payroll Disbursements 31393-31482 Employee Paychecks $ 143,151.92 Biweekly Payroll 10/29/03 91015-91516 Direct Deposit Statements 944,946.00 Biweekly Payroll 10/29/03 Total Payroll Disbursements $ 1,088,097.92 Wire Transfer Payments U.S.Bank $ 178,639.96 October Interest Payment on Series 2000 Certificates of Participation Total Wire Transfer Payments $ 178,639.96 Total Claims Paid 10116/03-10/31103 $ 11,370,272.71 G:Iexcel.dta1fn1220WPSHARE1Claims Paid Report102-031CIaims Paid Report-103103.xis EXHIBIT B _ rnr21011c Page 10 of 10 11110r20M, BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 11/19/03 AGENDA REPORT Item Number Item Number 9a Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Bob Chenowith, Senior Engineering Associate SUBJECT: PROPOSED ANNEXATION NO. OCSD-33 —TOVATT ANNEXATION GENERAL MANAGER'S RECOMMENDATION (1) Receive and file petition from Bill Tovatt to annex 1 .02 acres to Orange County Sanitation District (OCSD) near the intersection of Randall Street and Clark Street in an unincorporated area of Orange County; and (2) Adopt Resolution No. OCSD 03-25, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-33 — Tovatt Annexation). SUMMARY • OCSD received a request from Bill Tovatt to annex 1 .02 acres to OCSD. This parcel will be connected to an existing OCSD 21-inch sewer on Randall Street. • This parcel will be annexed to the City of Orange. The property has an existing five-bedroom house with an existing septic system that will be removed after annexation and connection to the OCSD sewer. • OCSD has collected the sewer inspection and sewer capacity fees for this property. PROJECT/CONTRACT COST SUMMARY This annexation is in accordance with the terms of the negotiated agreement with the County of Orange regarding A.B.8 Tax Exchange for annexing properties. The Board of Directors approved this action and it became effective March 14, 1989. Under this Tax Exchange, OCSD does not receive a percentage of the basic levy, and instead, collects a higher annexation fee. The fee of $9,033.66 includes the following: LAFCO Processing Fee $ 1 ,150.00 OCSD Processing Fee 500.00 State Board of Equalization Processing Fee 350.00 CA Environmental Quality Act Filing Fee 43.00 OCSD sewer capacity fee existing (5) bedroom home 2,530.00 OCSD sewer inspection fee 500.00 OCSD Annexation Acreage Fee (1 .02 acres) $ 3,960.66 TOTAL ANNEXATION FEE $ 9,033.66 PRIOR COMMITTEE/BOARD ACTIONS N/A BUDGET IMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS Notice of Exemption will be filed. ATTACHMENTS 1 . Exhibit A Legal Description 2. Exhibit B Map RLC:sa G:�ntglobal\Agenda Draft Reports\Joint Boards\TovattAnnexation.doc Revised: 8120101 Page 2 EXHIBIT "A" OCSD-33 Tovatt Annexation No. DA-03-20 to the Orange County Sanitation District 1 That portion of land situated in the Unincorporated Territory of the County of Orange, State of California, 2 being all of Parcel 2,as shown on a map thereof filed in Book 22, Page 43 of Parcel Maps, in the Office 3 of the County Recorder of said County, more particularly described as follows: 4 Beginning at an angle point in the existing boundary of the Orange County Sanitation District(OCSD), 5 as established by the" Schley Annexation, No. DA 00-12" to said District, said angle point,being the 6 westerly terminus of that certain course described as"N80°39'51"E (radial)30.00"'in said annexation, 7 said point also being the most northeasterly comer of said Parcel 2, a tie to said point bears South 8 46045'39"East 1215.77 feet from Orange County Horizontal Control Station GPS No. 3192, having a 9 coordinate value(U.S. Survey foot)of North 2243089.237 and East 6095869.521,based upon the to California Coordinate System(CCS 83),Zone VI, 1983 NAD( 1991.35 epoch OCS GPS Adjustment)as I 1 said GPS No. 3192 is shown on Tract 13833 filed in Book 690,pages 21-24 of Miscellaneous Maps of 12 Records of said County; 13 THENCE leaving said district boundary and"Schley Annexation"and continuing in a generally 14 southwesterly,westerly, southwesterly, southerly,easterly and northeasterly direction along the boundary 15 of said Parcel 2 the following courses; 16 South 819 F41"West,4.73 feet; 17 THENCE,South 43°16'21"West, 88.43 feet; 18 THENCE South 29°56'21"West, 19.37 feet; 19 THENCE South 86°21'53"West, 36.16 feet; 20 THENCE South 29°56'21"West, 19.55 feet; 21 THENCE South 12°06'21"West,43.00 feet; 22 THENCE South 23°16'21"West, 115.00 feet; 23 THENCE South 08°28'19"East, 33.00 feet; 24 THENCE South 89012'39"East, 171.13 feet; 25 26 27 Page 1 of 3 EXHIBIT"A" OCSD-33 Tov att Annexation No. DA-03-20 to the Orange County Sanitation District 1 THENCE North 57°45'41"East, 119.59 feet to a non-tangent intersection with the West line of said 2 district boundary and"Schley Annexation", said intersection point being on a curve concave easterly and 3 having a radius of 430.00 feet,a radial line of said curve through said point bears North 48°46'51"East, 4 also being a point in the westerly right-of-way line of Randall Street, 60.00 feed wide, as shown on said 5 annexation, said point also being northwesterly along said curve 65.69 feet from the southeasterly 6 terminus thereof as shown on said annexation. 7 THENCE northwesterly along said curve and said westerly line of the Schley Annexation through a 8 central angle of 32°44'50"a distance of 245.76 feet to the POINT OF BEGINNING 9 10 11 Unless otherwise noted, all distances are ground and are based upon the California Coordinate System 12 (CCS 83), Zone VI, 1983 NAD(1991.35 EPOCH OCS GPS Adjustment). To obtain grid distances, 13 multiply the ground distances by 0.99997284. 14 is 16 The above-described parcel of land contains 1.02 acres,more or less. 17 18 All as shown on Exhibit"B"attached hereto and by this reference,made a part thereof. 19 This document was prepared by me or 20 21 under my direction and supervision. �►ND S 22 �Tlt K' Dated this_day of A)!)L"Emff)= , 2003 ; .W 23 C.1V 7 � U 2 EXP.6130106 Z 24 ll� Michael K.Sullivan L.S.6254 N0.6254 Q 25 My license expires 6-30-06 el. 26 27 Page 2 of 3 EXHIBIT"A" OCSD-33 Tovatt Annexation No. DA-03-20 to the Orange County Sanitation District I 2 This document does meet the approval of 3 4 the Orange County Surveyor's Office D 9 G 5 John Canas, County Surveyor 'K.Sv<(�F�� 6 Dated this 7 Tyday of A,10 vi_^I96e,2003 . 3 EXP 0 Z 7 AL �� ` NQ.6254 q. 8 Per:Michael K. Sullivan,Deputy County Surveyor L.S. 6254,My license expires 6-30-06 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Page 3 of 3 EXHIBIT "B" SHEET 1 OF 1 NG2243089.237 OCSD-33 TOVATT ANNEXATION No, DA 03-20 TO THE ORANGE COUNTY SANITATION DISTRICT SANTIAGO CANYON RON, NE___-) - r`f SAS G01 ONE D (' r~ 1 p 46.45 T9•• MOST NE'LY COR © / SURVEYOR'S STATEMENT o AND 9L 1� PCL.2 PMB 22/43 G� S,jj, // THIS PROPOSAL WAS PREPARED BY ME OR Vr 2 / UNDER MY IRECMI [ON. OB MYCLICENSE EXPIRESN6/30/200654 N0.6254 (N80.39'51"E 30.00'rad.) \ OF�\ 30. 30' 1 Q �`Ory WESTERLY LINE �e,S SCHLEY ANNEXATION' COUNTY SURVEYOR'S STATEMENT v \• VX.SI/'I NOTES.• 2 � �� THIS PROPOSAL DOES MEET THE APROVAL OF THE `cj4 3 0 ' Z ORANGE COUNTY SURVEYORS OFFICE. 4 % Q O DATED TH I S 77?I DAY OF NO✓`r•1l3i/C 2003. EX?WOW z A.P.N. 379-541-02 1• SBl°31'41"W 4.73' JOHN CANAS. COUNTY SURVEYOR 2 • S29°56'21W 19.37- qo �`/ THIS PARCEL OF LAND CONTAINS 3 $86°21'53"W 36.16' No.625'4 r � � f�/�! _� 1.02 ACRES. MORE OR LESS. 5 4 • S29°56'21"W 19.55' o �� 'v)g OF 5 S12'06'21"W 43.00' BY: MICHAEL K. SULLIVAN. DEPUTY COUNTY SURVEYOR L.S. 6254. MY LICENSE EXPIRES 6/30/2006. in $ 3 zo \ 30' LEGEN O "SCHLEY ANNEXATION"NO.DA-00-12 TO �•N�0.1� �•�B. ORANGE COUNTY SANITATION DISTRICT. 19"E \ $OB°28' � �\ © "ANNEXATION N0.107 (HUFF)" TO ORANGE 33.00' \l5toa 6`ss9% \ COUNTY SANITATION DISTRICT NO.7 S89°12'39"E 171.13' p6 \ t I RECORD PER ADJOINING ANNEXATION ANNEXATION BOUNDARY SCALE 1" a 50' \ \ \ \\ EXISTING ORANGE COUNTY SANITATION UNLESS OTHERWISE NOTED. ALL DISTANCES ON THIS MAP ARE DISTRICT (O.C.S.D.)BOUNDARY. 50' 0' 25' 50' GROUND AND ARE BASED UPON THE CALIFORNIA COORDINATE SYSTEM (CCS83). ZONE V1. 1983 NAD (1991.35 EPOCH OCS - INDICATES OCS HORIZONTAL CON7ROL STATION AS FILED GPS ADJUSTMENT). TO OBTAIN GRID DISTANCE. MULTIPLY IN THE OFFICE OF THE ORANGE COUNTY SURVEYOR. GROUND DISTANCE BY 0.99997284. BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 11/19/03 AGENDA REPORT Item Number Item Number 9(b Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Bob Chenowith, Senior Engineering Associate SUBJECT: PROPOSED ANNEXATION NO. OCSD-35 — KIRKLAND ANNEXATION GENERAL MANAGER'S RECOMMENDATION (1) Receive and file petition from Ken Kirkland to annex 0.31 acres to Orange County Sanitation District (OCSD) near the intersection of Randall Street and Clark Street in an unincorporated area of Orange County; and (2) Adopt Resolution No. OCSD 03-26, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-35 — Kirkland Annexation). SUMMARY • OCSD received a request from Ken Kirkland to annex 0.31 acres to OCSD. This vacant parcel will be annexed to the City of Orange. This is a vacant piece of land. • The property owner will extend an existing City of Orange sewer up Randall Street to serve this parcel. The property owner will pay all costs to extend this new sewer. • The City of Orange will collect sewer inspection fees, and the new sewer will be built per City of Orange construction standards. The City of Orange will collect the sewer capacity fees for this property when the property owner acquires building permits in the future. PROJECT/CONTRACT COST SUMMARY This annexation is in accordance with the terms of the negotiated agreement with the County of Orange regarding A.B.8 Tax Exchange for annexing properties. The Board of Directors approved this action and it became effective March 14, 1989. Under this Tax Exchange, OCSD does not receive a percentage of the basic levy, and instead, collects a higher annexation fee. The fee of $5,876.00 includes the following: LAFCO Processing Fee $ 1 ,150.00 OCSD Processing Fee 500.00 State Board of Equalization Processing Fee 300.00 CA Environmental Quality Act Filing Fee 43.00 OCSD Annexation Acreage Fee $ 3.883.00 TOTAL ANNEXATION FEE $ 5,876.00 PRIOR COMMITTEE/BOARD ACTIONS N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS Notice of Exemption will be filed. ATTACHMENTS 1 . Exhibit A Legal Description 2. Exhibit B Map RLC:sa G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 9(b).Annexation 35.doc Revised: 8i20.'01 Page 2 W EXHIBIT"A" OCSD-35 Kirkland Annexation No. DA-03-22 to the Orange County Sanitation District 1 That portion of land situated in the Unincorporated Territory of the County of Orange, State of California, 2 being all of Lot 65 and a portion of Lot 66 and Lot A(Randall Street)of Tract No. 752,as shown on a 3 map thereof filed in Book 25,Pages 12 through 14,inclusive,of Miscellaneous Maps, in the Office of the 4 County Recorder of said County,more particularly described as follows: 5 Beginning at an angle point in the existing boundary of the Orange County Sanitation District(OCSD), 6 as established by the"OCSD- 12, Galentine Annexation, No. OCSD 00-07" to said District, said angle 7 point,being the northwesterly terminus of that certain course described as"N08°42'00"W 116.00"'of 8 said district. 9 THENCE leaving said Annexation,northerly along the prolongation of the west line of said Annexation, 1 o being the centerline of Randall Street, 80 feet wide,as shown on said Tract 752, North 08°28'19"West 11 64.00 feet,to the intersection with the westerly prolongation of the north line of Parcel 1,as shown on a 12 map recorded in the Office of the County Recorder of said County,in Book 57,Page 26 of Parcel Maps, 13 tie to said point bears South 64°23'19"East 945.74 feet from Orange County Horizontal Control Station 14 GPS No. 3192,having a coordinate value(U.S. Survey foot)of North 2243089.237 and East 15 6095869.521,based upon the California Coordinate System(CCS 83),Zone VI, 1983 NAD( 1991.35 16 epoch OCS GPS Adjustment)as said GPS No.3192 is shown on Tract 13833 filed in Book 690,pages 17 21-24 of Miscellaneous Maps of Records of said County, said point also being the True Point of 18 Beginning. 19 THENCE continuing along the centerline of Randall Street North 08°28'19"West to the intersection with 20 the westerly prolongation of the North line of Lot 65 of said Tract 752; 21 THENCE leaving said centerline of Randall Street,North 81031'41"East, 190.00 feet, along said 22 westerly prolongation and the North line of Lot 65 of said Tract, to the northeast corner of Lot 65; 23 THENCE South 08'28'19"East, 70.00 feet along the East line of said Lots 65 and 66,to the northeast 24 corner of Parcel 1, P.M.B. 57/26; 25 THENCE South 819 P41"West, along the North line of said Parcel 1, and it's westerly prolongation, 26 190.00 feet to the True Point of Beginning 27 Page 1 of 2 �o V EXHIBIT"A" OCSD-35 Kirkland Annexation No. DA-03-22 to the Orange County Sanitation District I Unless otherwise noted, all distances are ground and are based upon the California Coordinate System 2 (CCS 83),Zone VI, 1983 NAD(1991.35 EPOCH OCS GPS Adjustment).To obtain grid distances, 3 multiply the ground distances by 0.99997284. 4 5 The above-described parcel of land contains 0.31 acres,more or less. 6 7 All as shown on Exhibit"B"attached hereto and by this reference, made a part thereof. 8 9 to This document was prepared by me or I under my direction and supervision. K. 12 Dated this&da of A) 'VIGNOE� 20 ��G� �9 t 3 — y 03 �EXP.6/30/06 Z 15 Michael K.Sullivan L.S. 62S4 My license expires 6-30-06 16 17 18 This document does meet the approval of 19 ��5���K.s� G the Orange County Surveyor's Office 20 U �7 Op , John Canas,County Surveyor EXP.6/30/06 Z 21 y Dated this 6 day of NC-✓j=Y4��_��2003 1 NO.6254 22 C,A1,,\ 23 `'G�/.l�'� /. Per: Michael K. Sullivan,Deputy County Surveyor 24 L.S. 6254,My license expires 6-30-06 25 26 27 Page 2 of 2 EXHIBIT IJBII SHEET IOF 1 OCSD-35 KIRKLAND ANNEXATION No. DA 03-22 TO THE ORANGE COUNTY SANITATION DISTRICT GPS No.3192 N 2243089.237 609 869.521 I ON ROAD lJ C t�� v 1 SANt1A���Y �� AN`(ONROAf_ v 1 40' c;.:::c;yxi==xaT a', T RRE 0-x: it NORTH LINE , NE cc', I - - N LOT 65 , LOT 65 14 SCALE 1` 50' 1 41,.E 190.00' N �( `y 31' rn w ' Ss4 23 o N ,i 50, 0' 25' 50' o? (� (tte) 94S,�4, O ___ LOTS 65 to o t°-14}., 190.00' `�N Pci°� NOTES: , w - SB 3 , NORTH LINE A.P.N. 379-582-14 PCL I '` "- '� THIS PARCEL OF LAND CONTAINS SURVEYOR'S STATEMENT 'S P�a 0.31 ACRES. MORE OR LESS. THIS PROPOSAL WAS PREPARED BY ME OR 'fYK'S�(LF UNDER MY DIRECTION. •� Vd` L UNLESS OTHERWISE NOTED. ALL DISTANCES y O8 ON THIS MAP ARE GROUND AND ARE BASED Il�� �EXP.6I30106Z UPON THE CALIFORNIA COORDINATE SYSTEM MICHAEL K. SULLIVAN• L.S. 6254 O ICCS831. ZONE Vi. 1983 NAD (1991.35 EPOCH MY LICENSE EXPIRES 6/30/2006 Z OCS GPS ADJUSTMENT).TO OBTAIN CR10 .\� NO.6254 Q s0 DISTANCE. MULTIPLY GROUND DISTANCE 9 OF F 91 BY 0.99997284. O N O 6 O f I f I I I COUNTY SURVEYOR'S STATEMENT 1 40' 1 ao' LEGEND THIS PROPOSAL DOES MEET THE APROVAL OF THE ORANGE COUNTy SuRVEYORS OFFICE. Q `cam DATED THIS 6 7-Ft DAY OF 42"L Mdr� 2003. V� y 9 ` OCSD-12 GALENTINE ANNEXATION NO.OCSO 00-07 JOHN CANAS. COUNTY SURVEYOR UP Br3DroS Z I 1I A TO ORANGE COUNTY SANITATION DISTRICT. N0.6254 4 (> RECORD PER ADJOINING ANNEXATION BY: MICHAEL K. SULLIVAN. DEPUTY COUNTY SURVEYOR `'g7lc ANNEXATION BOUNDARY L.S. 6254. MY LICENSE EXPIRES G/30/2006. OF \ \ \ \ EXISTING ORANGE COUNTY SANITATION DISTRICT (O.C.S.D.)BOUNDARY. - INDICATES OCS HORIZONTAL CONTROL STATION AS FILED IN THE OFFICE OF THE ORANGE COUNTY SURVEYOR. DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, October 22, 2003 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, October 22, 2003 at 4 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: Thomas Nixon, General Counsel Shirley McCracken, Chair Don Hughes Steve Anderson, Vice Chair Scott Baugh Jim Ferryman, Chairman, OMTS Committee Larry Kast Brian Donahue, Chairman, PDC Committee Eric Saperstein Brian Brady, Chairman, FAHR Committee Chris Townsend Jim Silva, County Supervisor Chris Massey Norm Eckenrode, Past Board Chair Mike Moore Tod Ridgeway, Director, Guest Sonja Wassgren Gerhardt Van Dreis Directors Absent: Randy Fuhrman None STAFF PRESENT: Blake Anderson, General Manager Bob Ghirelli, Director of Technical Services Patrick Miles, Director of Information Technology Carol Beekman, Communications Services Manager Jim Colston, Legal and Regulatory Affairs Liaison Layne Baroldi, Legal and Regulatory Affairs Liaison Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Gerhardt Van Dreis stated that he had submitted an unsolicited joint venture proposal to operate secondary treatment processes and has not received a reply. Chair McCracken asked staff to prepare a response. a Minutes of the Steering Committee Page 2 October 22, 2003 Randy Fuhrman asked the legislative consultants to discuss how they will deal with trying to get funding when there are so many other issues also seeking the same funds. He also asked that alternative treatment processes be considered and stated he was interested in the directors' compensation discussion. (4) RECEIVE, FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the September 24, 2003 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken asked Directors Brady and Anderson to provide an update on their review of the Directors reimbursement policies. They provided a draft with only three major changes: definition of what constitutes a meeting; how meetings are authorized; and how much compensation is received. Blake will ask Lisa Tomko, Gary Streed and General Counsel to review the proposed changes and it will be returned to the Steering Committee in November for further consideration before presentation to the Board. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson said that he was pulling agenda item 6.A. Chair McCracken stated that Tom Woodruff will be addressing the Board on the subject in November in Closed Session. A breakdown of litigation fees will be provided at that time. Mr. Anderson announced that there were still seats available for the 2004 Economic Forecast Conference for Orange County that is being held on October 28. He reported that meetings are ongoing with SAW PA to negotiate an agreement based on the term sheet that was approved by the Board. There is another meeting scheduled for October 24 and he hopes to bring the agreement to the Board in November. EMT and staff are working together on strategic planning activities. This process should take another 16 to 20 weeks and will be used during the preparation of the 2004-05 budget. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Nixon reported that the arguments were held today in the appeal hearing on the Crow-Winthrop case was held today. The judge has 90 days to make an opinion. General Counsel Tom Woodruff represented the District. (8) DISCUSSION ITEMS (Items A-D) A. Update on Biosolids Program and Costs Layne Baroldi reported on ongoing activities and what is planned until such time as the Biosolids Management Strategic Plan is approved. One-half of the Minutes of the Steering Committee Page 3 October 22, 2003 biosolids is going to Tule Ranch at a cost of between $33-35/ton. Staff was asked to prepare a detailed breakdown of the contract terms and costs for the November 5, 2003 OMTS Committee meeting. B. Legislative Briefing by Consultants Chair McCracken commented that during 2003 legislative calendar the District hired four legislative advocates to assist the agency in forwarding its legislative agenda and respond to legislation of interest to the District. Each of those consultants provided the Committee with a brief update on the status of their efforts. Our federal legislative consultants, Eric Saperstein and Larry Kast (partner of John Freshman), updated the committee on their activities for the past year and their plans for 2004. Their consulting services focused on acquisition of federal funding for the secondary treatment expansion through EPA assistance grants. They have been building support for our request with the Orange County and California delegation in Washington and will continue to work to get this project into the EPA budget as a line item. The first year is always the hardest. Congressman Christopher Cox has asked to keep this project in view and has indicated that he will speak to the Chair of the Appropriations Committee to help him understand the project and the need for funding. It is important that the message be reinforced to our Washington delegation. Directors Jim Silva and Tod Ridgeway reported on their trip to Washington, DC. They were accompanied by Bob Ghirelli and our federal legislative consultants. They appreciated the work that the consultants did to set up the various meetings with the delegates and staff members, which were very focused and effective. Director McCracken thanked Directors Silva and Ridgeway for making the trip to Washington last week to help sell our project. It is important that through our consultants we are vigilant in our efforts to keep our goals in mind. Scott Baugh reported on the state legislative initiatives he was working on and most recently, his activities in the areas of biosolids and urban runoff funding. He will continue to work to amend the state constitution to allow the assessing of fees to treat urban runoff. There is a need to educate the public and those organizations that have expressed concerns, such as Howard Jarvis and the Orange County Taxpayers. Mr. Baugh is also working with the District on a state-wide biosolids policy, using a two-year bill that is now "parked"at our request of the author, Ken Maddox. If the State Water Board takes on the issue through language in its General Order for Biosolids, then the bill won't be necessary. He also discussed budget impacts and how the governor-elect may address these problems. There may be some special sessions of the assembly this fall to deal with the budget issues. Christopher Townsend and his firm are focused on acquisition of state funding for District projects including fats, oil and greases, Santa Ana River Interceptor line and other projects through Propositions 40 and 50 and other grant sources. He indicated that all of the Proposition 50 money has been given to the Department of Water Resources for distribution. They will be working to get funds identified for the District. After a brief question and answer period, the Directors agreed that the services provided by the three firms could not be accomplished with OCSD staff alone and felt that all Minutes of the Steering Committee Page 4 October 22, 2003 were representing the District professionally and effectively. Mr. Saperstein stressed that continued participation by the Directors will be required to make the team effective. He also thanked the staff for their assistance and responsiveness in providing such high-quality information for them. B. The Agenda Items scheduled to be reviewed by the Board's working committees in November were reviewed. Director Brady asked if the MOUs were going to be presented to the FAHR Committee in November. Mr. Anderson said that he was happy to report that all of the bargaining units have signed and the MOUs will be presented to the directors in November. C. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Director Eckenrode announced that he met with the mayor of Anaheim, Curt Pringle, and briefly discussed the GW R System project. Mayor Pringle has asked to meet with the general managers of the Orange County Water District and the Sanitation District to discuss this project and the possibility of landscaping the settling basins. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, November 19, 2003 at 5 p.m., one week earlier than usual. The next Board Meeting is scheduled for Wednesday, November 19, 2003 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:42 p.m. in Closed Session, pursuant to Sections 54957.6 to discuss the General Manager's performance evaluation and compensation. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with Government Code tl Minutes of the Steering Committee Page 5 October 22, 2003 Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:55 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. Su fitted by: J 'a4 Tappan ring Committee Secretary Gawp.dtalagendalSleering Committee10310CT1 f02203 draft SC Mlnotes.doc \ vl MINUTES OF THE OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE Orange County Sanitation District Wednesday, November 5, 2003 — 5:00 P.M. A meeting of the Operations, Maintenance and Technical Services Committee of the Orange County Sanitation District was held on November 5, 2003, in the District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: OMTS Directors Present: Staff Present: James M. Ferryman, Chair Blake Anderson, General Manager Anna Piercy, Vice Chair Bob Ghirelli, Director of Technical Services Don Bankhead Bob Ooten, Director of Operations & Maintenance Carolyn Cavecche Patrick Miles, Director of Information Technology Debbie Cook Mark Esquer Tony Kawashima Jim Burror Tod Ridgeway Layne Baroldi Paul Walker Penny Kyle, Committee Secretary Shirley McCracken, Board Chair Steve Anderson, Board Vice Chair Others: OMTS Directors Absent: Fred Soroushian, CH2MHill (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were none. (4) REPORT OF THE COMMITTEE CHAIR The Committee Chair had no report. (5) REPORT OF THE GENERAL MANAGER Blake Anderson, General Manager, reported that staff had been contacted by the General Manager of Metropolitan Water District to see if OCSD would participate in a facilitated meeting with Kern County Water Agencies concerning Class A biosolids management zones in Kern Minutes of the Operations, Maintenance , , and Technical Services Committee Page 2 October 1, 2003 County. The meeting participants would also include the City of Los Angeles and the County Sanitation Districts of Los Angeles. A meeting is expected to be held within the next few weeks. Staff is looking into the possibility of using biosolids, along with seed, to assist in restoring the lands ravaged by the recent fires in Southern California. It was noted that biosolids have successfully been used to restore strip mining lands in the Midwest and forests in the Seattle, Washington area for the last several years. Bob Ghirelli, Director of Technical Services, reported the US Geological Survey has requested the District to assist them with water quality monitoring after the first rains because of the fires and the tremendous amount of sediment flow expected, to better understand what the impact would be when it reaches the ocean. (6) CONSENT CALENDAR ITEMS a. The minutes of the October 1, 2003 Operations, Maintenance and Technical Services Committee meeting were approved as drafted and ordered filed. b. OMTS03-49 Receive and file Technical Services Monthly Report, which focuses on regulatory, biosolids and performance, measures for the Technical Services Department. C. OMTS03-50 Receive and file Operations & Maintenance Monthly Report, which focuses on compliance, financial data and performance measures for the Operations and Maintenance Department. Motion: Moved, seconded and duly carried to approve the recommended actions for items specified as 6(a) through (c) under Consent Calendar. (7) ACTION ITEMS a. OMTS03-51 Recommend to the Board of Directors to receive and file Final Report for Corrosion Management Assessment Study, Specification No. CS-2002-80-13D, dated September 2003, prepared by M.J. Schiff and Associates, Inc. Motion: Moved, seconded and duly carried to recommend approval to the Board of Directors. (8) INFORMATIONAL ITEMS a. OMTS03-52 Long Range Biosolids Management Plan Jim Burror provided an overview on the District's current biosolids reuse policy, as well as a strategy to implement the policy based on recommendations from the Long Range Biosolids Management Plan. Fred Soroushian of CH2M Hill presented information on the diversification reuse policy, as well as discussing costs for biosolids management options. Minutes of the Operations, Maintenance and Technical Services Committee Page 3 October 1, 2003 b. OMTS03-53 Tule Ranch Biosolids Management Update Layne Baroldi provided an update on Tule Ranch's management of biosolids. Also discussed was the development of a Class A biosolids chemical stabilization technology that is currently being utilized on the farm. Mr. Baroldi also provided a cost comparison utilizing Tule Ranch and other options currently utilized to manage the District's biosolids. It was noted that Tule Ranch was the primary fail safe market in the Long- Term Biosolids Master Plan. (9) REPORT OF DIRECTOR OF INFORMATION TECHNOLOGY The Director of Information Technology had no report. (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE The Director of Operations and Maintenance had no report. (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES The Director of Technical Services had no report. (12) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) FUTURE MEETING DATES The next Operations, Maintenance and Technical Services Committee meeting is scheduled for December 3, 2003 at 5 p.m. (15) CLOSED SESSION There was no closed session. Minutes of the Operations, Maintenance and Technical Services Committee Page 4 October 1, 2003 (16) ADJOURNMENT The Chair declared the meeting adjourned at 6:24 p.m. Submitted by: Penny M. Ky Operations, l0laintenancef nd Technical Services Committee Secretary GAwp.dta\agenda\0MTS\2003\1103\110503 OMTS Minutes.doc O MTS COMMITTEE Meeting Date To Bd. of Dir. . •i 11/5/03 11/19/03 AGENDA REPORT Item Number Item Number OMTS03-51 12 b Orange County Sanitation District FROM: Robert J. Ooten, Director of Operations and Maintenance Originator: Barbara Collins, Principal Analyst SUBJECT: FINAL REPORT for CORROSION MANAGEMENT ASSESSMENT STUDY, SPECIFICATION NO. CS-2002-80-BD GENERAL MANAGER'S RECOMMENDATION Receive and file the Final Report for Corrosion Management Assessment Study. Specification No. CS-2002-80-13D. dated September 2003. prepared by M. J. Schiff & Associates. Inc. SUMMARY • The District required the services of a corrosion system expert in order to perform an evaluation of the existing District facilities and to provide recommendations for developing a comprehensive corrosion management program • In April 2002. the District contracted with M. J. Schiff & Associates, Inc. in association with Villalobos and Associates Consulting Engineers, for the purpose of conducting a Corrosion Control Program Assessment Study of the two treatment plants, interplant pipelines, and the collection systems. • The assessment study completes the first phase of a three phase effort to implement a corrosion management program and provides the groundwork for the program development and implementation phases. • The report recommended the following: - Continue use of materials selection and standard specification and design guidelines for coatings and linings. - Continue use of chemical inhibitors in the trunk sewers and the treatment plants for odor and corrosion control. - Continue to conduct periodic condition assessments of plant and collection systems. - Expanded and extended use of protective coatings (paints, etc.) to control internal pipeline and concrete vessel corrosion. - Implement industry standard corrosion monitoring practices to provide guidance on the effectiveness of inhibitor materials. G,\wp.dtatagenda\Board Agenda Reports\2003 Board Agenda Reports\1103\I1em 12(b).Corrosion Report.doc Revised: 06/04/03 Page 1 Expand the use of cathodic—type corrosion protection systems for metal pipelines and structures. Over the next seven years, conduct about $6.5 million of facility inspections. studies, and spot repairs as outlined in the assessment report. - Develop a team of technical and field staff assigned to manage the corrosion program and conduct periodic inspections of District facilities. - Make the District's corrosion program proactive versus reactive in order to reduce overall lifecycle costs. - Develop a cradle to grave approach for capital improvement and new facility planning, design, construction. operations. and decommissioning. - Complete the remaining two phases toward implementing the corrosion management program. PRIOR COMMITTEE/BOARD ACTIONS A consulting services agreement with M. J. Schiff & Associates. Inc. for the development of a corrosion management program was approved at the March 22. 2002 Board Meeting. PROJECT/CONTRACT COST SUMMARY The recommended consulting services for Phase I of the Corrosion Management Program were estimated to be $145.000, and the project was completed for the estimated amount. Estimates of the cost savings associated with well developed corrosion control programs on buildings, wastewater structures, pipelines and various other facilities range from $5 to $25 for each $1 expended. Most public agencies that have implemented corrosion control programs quote a savings value of $7 for each $1 spent. BUDGET IMPACT X This item has been budgeted. (Line item: 32001-02) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) G:\wp.dtMagenda\Board Agenda Reports\2003 Board Agenda Reports\11011tem 12(b).Corrosion Report.doc Revised: 06/04/03 Page 2 ADDITIONAL INFORMATION An Executive Summary of the report is attached. The full report is on file in the Board Secretary's office and will be posted on the District's Website @ www.ocsd.com. To request a copy of the full report in CD format, please contact Bob Ooten at 714-593-7020. ALTERNATIVES Continue with ongoing operations and maintenance programs that do not optimize corrosion control in the District collection systems and treatment facilities. CEQA FINDINGS NA ATTACHMENTS Executive Summary— Final Report for Corrosion Management Assessment Study, Specification No. CS-2002-80-BD G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1101Item 12(b).Corrosion Report.doc Revised: 06/04/03 Page 3 ORANGE COUNTY SANITATION DISTRICT ATTACHMENT 1 CORROSION MANAGEMENT ASSESSMENT STUDY EXECUTIVE SUMMARY Prepared by: M. J. Schiff & Associates, Inc. —September 2003 The Orange County Sanitation District (OCSD or The District) contracted on April 25, 2002 with M.J. Schiff & Associates, Inc. (MJS&A) in association with V&A Consulting Engineers (V&A) for the purpose of conducting a corrosion control program assessment study of the two treatment plants, interplant pipelines, and collections systems throughout Orange County. Continuous and effective operation of the District's facilities is critical to the health and safety of Orange County's citizens and the local environment. In addition, political and environmental situations have raised the awareness and consequences associated with releases and spills, a few of which have been due to corrosion. Management of corrosion on facilities and assets is a necessary part of the essential public services that the District provides to their customers and stakeholders. Corrosion management is an essential part of asset management. Once constructed, corrosion is generally the life limiting mechanism for these civil infrastructure assets due to the service life expectations (50 to 100 years). Over the 50+ years that the District has been in operation, the value of the Districts infrastructure assets has increased. The replacement value of the assets of the District was predicted to be $4 Billion by Parsons/GHD in their Asset Management Strategic Plan completed in late 2002. The District has roughly half of that amount in assets at this time ($2 Billion). The additional $2 Billion in assets will be the result of capital improvement projects currently planned. The overall Corrosion Management Program has been divided into three phases by the District. The goal of the overall program is to implement and maintain a comprehensive Corrosion Management Program from this point forward. Phase I (this project) is the Programmatic Assessment. The objective of this Phase I project was to assess where the District is in terms of managing corrosion and establish the requirements (strategy, budget and schedule) for the development and implementation of an overall Corrosion Management Program. The project also provides recommendations for the management of the Corrosion Management Program by the District and the staffing requirements to run the program. The recommendations from Phase I project will provide guidance as to recommended schedules and costs for the initiation of the overall corrosion management program and the Phase II assessments on District assets. OCSD/810/PJ G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 12(b).1.doc 1 11/12/2003 Phase II will be to conduct the Physical Condition Assessments on Critical Assets identified in Phase I. Phase III will encompass the actual remediation and rehabilitation for implementation for the assets. Once the Phase II assessments are complete, design projects and capital improvements to restore, repair and maintain District assets will be develop as part of Phase III of the program. Phase I of the project consisted of the following elements: 1. Review Existing Procedures, Guidelines and Documentation 2. Workshops and Interviews with District Field and Management Personnel 3. Field Surveys/Case Study Assessments on Selected District Assets to Determine Effectiveness of Current Corrosion Management/Control Practices 4. Research on Sources of Stray Current within the District Boundaries 5. Development of an Overall Corrosion Control Strategy 6. Development and Presentation of Corrosion Management Program Options 7. Description of Recommended Corrosion Control Program/Model and Phase II Projects 8. Preparation of a Report of Findings and Recommendations for 5-year Planning Horizon The following is a summary of observations and conclusions of the Study/Assessment: The District's approach to corrosion control has, in the past, been addressed on a piecemeal or project by project basis. The present form of the "management" of the corrosion control program has resulted in unpredictable and uncontrolled failures in various systems. Currently and historically, the District's corrosion control program has been driven by responses to incidents or urgent needs, rather than systematically identifying and managing of the District's facilities, assets and resources. What is needed is a holistic, comprehensive corrosion control program to improve control, prevention and prediction of corrosion. Such a program would look at District facilities from a financing, planning, design, operation and maintenance and final disposal or replacement point of view. From a technical standpoint rather than a management standpoint, there are some very good things that OCSD has done and continues to do to minimize corrosion damage when compared to other wastewater utilities. These include: • Use of materials selection and standard specifications/design guidelines, coatings/linings OCSD/810/PJ G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 12(b).i.doc 2 11/12/2003 i • Inhibitors for odor and corrosion control • Periodic condition assessments of plant and collection system assets These practices have prevented corrosion in the past at the District and will continue to be an important part of the corrosion control program along with other aspects. It is the opinion of the project team based on our review of the District's practices that the following would significantly improve corrosion management and control at the District: • Expanded and extended use of inhibitors to control internal corrosion. Inhibitors are a cost effective methods (perhaps the only way) to prevent internal corrosion on existing structures both in the collection systems and plant facilities, continued and expanded use of inhibitors with monitoring for their effectiveness on reducing corrosion damage is warranted. • Implement internal and external corrosion monitoring practices using existing technology used in other industries (oil & gas). This will expedite the District's goals for establishing inhibitor treatment procedures and practices by providing feedback on inhibitor effectiveness and persistence under actual collection system and plant system conditions. • Programmed maintenance repairs on existing and accessible lining systems. • Capital improvement projects (CIP) on existing coating/lining systems • Application of cathodic protection to critical metallic pipelines in the collection system and plant piping. Unfortunately, the District's previous practice of installing metallic pipelines, particularly ductile iron pipe (DIP), without intentional electrical bonding will be a major source of external corrosion management problems in the future when cathodic protection is necessary to extend the life of these assets in the collection system. • There needs to be improved District/personal ownership of the corrosion control efforts. The District needs to make a commitment to corrosion control and management. As long as the District is in existence, a corrosion control program will be required. Further, as the District's assets age, corrosion management will be more important as part of integrated asset management and asset life extension programs. A successful corrosion control program must have these elements. This approach has proven to be the successful for other public entities. • From an organizational standpoint, the Project team believes that the operations and maintenance department is the appropriate place for corrosion management to be located. Coordination will be required with engineering, planning, and asset management, but ultimately the responsibility and focus of corrosion management should be in the O&M Department. OCSD/810/PJ G:1wp.dta\agenda\Board Agenda Reports12003 Board Agenda Reports1110311tem 12(b).i.doc 3 11/12/2003 1 • The first step in developing improved ownership will be to establish a single point of contact for corrosion management and responsibility at the District. This person would be responsible for coordinating the efforts of District personnel, contractors, consultants and others. It is more important for this person to be familiar with wastewater operations and District facilities/procedures than be an expert in any one or all areas of corrosion control. In particular, the person will have to coordinate efforts between departments since assessments and condition tracking are largely the responsibility of Operations and Maintenance and the development and execution of CIP projects to improve the condition of the assets is the responsibility of engineering. • In order to jump start the program, the efforts and attention of the corrosion manager should not be divided, particularly in the early stages of the developing program (3 to 5 years). The plan should be to increase District resources during this period to develop a core of group (manager with two engineers and a technician). Once the core is established, consultants and contractors could be used to supplement District staff as needed to meet the needs of construction, operations and maintenance projects. • The reactive type of corrosion management program lacks focus and consistency and is expensive and environmentally risky, since problems are dealt with in an emergency fashion. Becoming proactive versus reactive will decrease overall lifecycle costs. One method for managing corrosion that is gaining favor in both municipal and for-profit business is to prioritize decisions based on risk. Risk is the product of likelihood (probability) and consequence for a given event. This project begins the process of a Corrosion Control Program based on corrosion risk management for the Districts assets. Initial projects for Phases II and III were developed, budgets provided and schedules identified. While the scope for this Phase I study was not intended to produce projects for Phase III, the projects identified for Phase III were obvious from our investigation and are necessary to be underway as soon as possible to improve and control corrosion in critical District facilities. The total estimated cost for the listed Phase 11 and Phase I I I projects described is approximately $6.5 Million. In addition, the Phase II assessments and programs will develop and require additional Phase III projects (and more similar Phase II type projects) to be planned and budgeted. The following is a summary of the how the recommended Phase II and III projects breakdown by categories: OCSD/810/PJ G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 12(b).1.doc 4 11/12/2003 Table 1 : Summary of Recommended Costs by Category Category of Expense Estimated Cost $M Repairs Previously 2.40 Recommended by Studies Collection Systems 2.00 Assessments and Studies Overhaul of Design Guidelines 0.10 and Standard Specs GIS Coordination of Corrosion 0.25 and Condition Assessment Information Training of OCSD Staff and 0.20 Personnel On Call Repairs During Planned 0.45 Assessments Outfall Monitoring 0.10 On-call Consulting Services and 0.40 Services on Program Start-up Contingencies on Construction 0.60 Costs Total 6.5 The projects in Phase II and Phase III are the beginning of a process. It will probably take the District 7 to 10 years to "catch up" on deferred maintenance and engineering related to corrosion. If the District makes and maintains the commitment, then the benefits will accumulate each and every year forward. Estimates of the cost savings for corrosion control programs on civil engineering infrastructure range from $5 to $25 for each $1 expended, with the most often quoted value of $7 saving for each $1 spent. Assuming this leverage, the $6.51VI spent on corrosion in the next 5 years will save $45.5M. The path forward is first to change the District culture towards corrosion as an inevitable cost of doing business and to better utilize District resources (personnel, standards, policies and procedures) and external resources to minimize corrosion risk and maintain the net asset value of the District's facilities. This phase of the program provided a framework and samples for development of a holistic rather than project orientation for OCSD/810/PJ G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1101Item 12(b).i.doc 5 11/12/2003 1 corrosion control. The concepts and plans put forth as a result of this project have proven to be the successful path forward for other public entities. Ultimately, personal responsibility and accountability for corrosion asset management as well as other forms of asset management and protection are in order to improve the overall asset life and performance. It will be necessary to make a cultural and paradigm shift in order meet the needs of the corrosion program. Corrosion Management Assessment Study Participants Specification No. CS-2002-80BD Consultants Orange County Sanitation District M.J. Schiff& Associates, Inc. (Alphabetical Order Graham Bell, P.E. Blake Anderson Kerri Howell, PE Nick Arhontes Eric Frechette, EIT Shabbir Basrai Adrineh Avedisian Brian Bin man Robert Pannell Patrick Carnahan V&A Consulting Engineers, Inc. William Cassidy Jose Villalobos, PE Chris Cervellone Paul Sciuto, PE Doug Cooke Glenn Willson, PE Mark Es uer Kevin Kra'ewski John Finias John Gonzalez Tod Haynes Dave Heinz Vicki Henn Deirdre Hunter Terry Krie David Ludwin Mike McCusker Peter Morrison Bob Ooten Jeff Peterson Ed Ratled e Ed Torres Mike Vuon Marco polo Velasco Rod Wade Simon Watson Chuck Winsor Ernest Yeboah OCSD/810/PJ G:1wp.dtalagenda\Board Agenda Reports12003 Board Agenda Reports1110311tem 12(b).1.doc 6 11/12/2003 DRAFT MINUTES OF PLANNING, DESIGN, AND CONSTRUCTION COMMITTEE MEETING Orange County Sanitation District Thursday, November 6, 2003, at 5 p.m. A meeting of the Planning, Design, and Construction Committee of the Orange County Sanitation District was held on Thursday, November 6, 2003, at 5 p.m., in the District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: PDC COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Blake Anderson, General Manager Brian Donahue, Chair David Ludwin, Director of Engineering Alice Jempsa, Vice Chair Bob Ooten, Director of Operations & Patty Campbell Maintenance John Collins John Linder, Construction Manager Norm Eckenrode Chris Cervellone, Construction Supervisor Patsy Marshall Jim Herberg, Engineering Manager Bob McGowan Matt Smith, Acting Engineering Manager Shirley McCracken, Board Chair Carol Beekman, Communications Services Manager Directors Absent: Chris Cervellone, Construction Supervisor Beth Krom Jim Burror, Senior Engineer Steve Anderson, Board Vice Chair David May, Project Manager Simon Watson, Maintenance Manager Jennifer Cabral, Public Information Specialist Layne Baroldi, Legislative and Regulatory Affairs Specialist Jean Tappan, Committee Secretary OTHERS PRESENT: Fred Soroushian (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. A PDC Committee Minutes Page 2 November 6, 2003 (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Brian Donahue did not make a report. (5) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson did not make a report. (6) REPORT OF THE DIRECTOR OF ENGINEERING Director of Engineering David Ludwin reported on the status of the Biosolids Truck Loading Facility construction project at Plant 2. The completion is about two years behind schedule and the contractor has filed for bankruptcy protection. Liquidated damages and other payments are being withheld. Staff is working with the surety to get the job completed. Jennifer Cabral provided an update on the construction outreach activities and the results. Jim Herberg described the CEQA process for the Ellis Avenue Pump Station and the public notifications. Bob Ooten and Simon Watson updated the Committee on the O&M DART reinvention project that has been completed after seven years of planning and implementation. The treatment plant portion is done and staff is now concentrating on the collections system, which should be done in two years. Mr. Watson described the work flow improvements and the next steps, including a new computerized maintenance management system to more efficiently deal with the data, and a district-wide asset management program that will be staff driven. (7) REPORT OF GENERAL COUNSEL General Counsel was not present. (8) CONSENT CALENDAR (Items a-i) It was moved, seconded and approved to pull items h. and i.from the Consent Calendar for additional discussion. a. MOVED, SECONDED AND DULY CARRIED: Receive, file, and approve draft minutes of the October 2, 2003 Planning, Design, and Construction Committee meeting. b. CHANGE ORDER REPORTS Attached are the Monthly Change Order Report and the Report of Construction Contracts with Potential Change Orders over Five Percent (5%). This is an information only item. Action on change orders that require PDC Committee or Board approval will be taken separately. There are four change orders this month for PDC Committee approval. 4 PDC Committee Minutes Page 3 November 6, 2003 C. PSA AND ADDENDA REPORT Attached is the PSA and Addenda Report. This is an information only item. Action on PSAs and Addenda that require PDC Committee or Board approval will be taken separately. There were no PSAs and no Addenda approved by the General Manager from September 19 through October 23, 2003. d. FACILITIES ENGINEERING CONSULTANT ACTIVITY REPORT Attached is the Facilities Engineering Consultant Activity Report. This is an information only item. e. SANTA ANA RIVER INTERCEPTOR RELOCATION AND PROTECTION STATUS REPORT Attached is the Santa Ana River Interceptor(SARI) Relocation and Protection Status Report. This is an information only item. f. PDC03-80 MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 1 to Warner Avenue Relief Sewer, Contract No. 11-22, with ARB, Inc., authorizing an addition of$153,000 and a time extension of 10 calendar days, increasing the total contract amount to $5,242,040. This item is for Planning, Design, and Construction Committee approval per delegated authority by Board Resolution 99-23. g. PDC03-81 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to (1) Ratify Change Order No. 1 to Rehabilitation of 36-inch Force Main (B) between Bitter Point Pump Station and Junction Box, Contract No. 5-29-R1, with Insituform Technologies, Inc., authorizing a deduction of$15,529, decreasing the total contract amount to $1,536,941; and (2) Accept Contract No. 5-29-R1 as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. h. PDC03-82 Recommend to the Board of Directors to ratify Change Order No. 10 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$56,041, increasing the total contract amount to $71,198,134. After clarifying the reasons for the changes, it was moved, seconded and duly carried to approve the recommended action. i. PDC03-83 Recommend to the Board of Directors to ratify Change Order No. 4 to Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, with J.F. Shea Construction, Inc., authorizing an addition of $197,094, increasing the total contract amount to $14,731,356. After clarifying the reasons for the changes, it was moved, seconded and duly carried to approve the recommended action. PDC Committee Minutes Page 4 November 6, 2003 (9) INFORMATIONAL ITEMS (Items a-b) a. PDC03-84 Long Range Biosolids Management Plan, Job No. J-40-7 Jim Burror provided an update on the status of the contract with CH2M Hill. An overview of the District's current biosolids reuse policy was presented, as well as a strategy to implement the policy based on recommendations from the Long Range Biosolids Management Plan. Layne Baroldi provided background information on the plan and announced that the governor-elect has named an Orange Countian, A. G. Kawamura the State's Secretary of Agriculture The diversification reuse policy and costs were discussed and RFPs are being developed for disposal options. b. PDC03-85 Capital Improvement Program Validation for FY 2004-05 Jim Herberg briefed the Directors on the steps staff took last year to validate the CIP for FY 2003-04. Staff plans to use the same process this year to validate the CIP for FY 2004-05 to confirm building the right projects at the right time. The goal is to reduce CIP costs in the next four years. Funds are available in the IPMC contract for the support necessary to complete this process. (10) ACTION ITEMS (Items a-d) a. PDC03-86 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to (1)Approve a budget Amendment of $4,222,000 for Long Term Monitoring Program, Job No. J-73-2, for a project budget of $7,074,000; and (2) Approve Amendment No. 2 to the Professional Services Agreement with ADS Environmental Services for additional flow monitoring and analysis for an additional amount of$125,000, increasing the total amount not to exceed $6,337,400. b. PDC03-87 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 1 to the Professional Services Agreement with Malcolm Pirnie, Inc., for Ellis Avenue Pump Station Rehabilitation, Job No. 1-10, providing for additional design engineering services for an additional amount of $400,055, increasing the total amount not to exceed $3,586,082. C. PDC03-88 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 3 to the Professional Services Agreement with Tetra Tech, Inc. for the Warner Avenue Relief Sewer, 9 PDC Committee Minutes ' Page 5 November 6, 2003 Contract No. 11-22, providing for additional engineering services during construction, for an additional amount of$78,500, increasing the total amount not to exceed $440,979. d. PDC03-89 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 5 to the Professional Services Agreement with Black & Veatch Corporation for additional construction support services for Effluent Pump Station Annex, Job No. J-77, for an additional amount of$1,776,417, increasing the total amount not to exceed to $6,164,240. (11) CLOSED SESSION There was no closed session. (12) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (13) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (15) FUTURE MEETINGS DATES The next Planning, Design, and Construction Committee Meeting is scheduled for Thursday, December 4, 2003 at 5 p.m. PDC Committee Minutes 1 Page 6 November 6, 2003 (16) ADJOURNMENT The Chair declared the meeting adjourned at 6:47 p.m. Submitted by: Jjg(aa Tappan C Committee Secretary G:\wp.dtatagenda\PDC\2003\Minutes\710603 draft PDC Minutes.doc r PDC COMMITTEE Meeting Date To Bd.of Dir. 11/05/03 11/19/03 AGENDA REPORT Item Number Item Number PDC03-81 13(b) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Bud Palmquist, Senior Engineer SUBJECT: REHABILITATION OF 36-INCH FORCEMAIN (B) BETWEEN BITTER POINT PUMP STATION AND JUNCTION BOX, CONTRACT NO. 5-29-R1 GENERAL MANAGER'S RECOMMENDATION (1) Ratify Change Order No. 1 to Rehabilitation of 36-inch Forcemain (B) Between Bitter Point Pump Station and Junction Box, Contract No. 5-29-R1, with Insituform Technologies, Inc., authorizing a deduction of $15,529, decreasing the total contract amount to S1,536.941 ; and (2) Accept Contract No. 5-29-R1 as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. SUMMARY Background • This project includes the rehabilitation of the section of Forcemain (B) of the Pacific Coast Highway Forcemain System between Bitter Point Pump Station and the junction structure adjacent to the Santa Ana River, the installation of cured in place pipe lining (CIPP) in a portion of an existing 42-inch siphon under the Santa Ana River, the preservation of 4.600 feet of existing 24-inch Forcemain (C) with a slurry coating to prevent corrosion, and the abandonment of 2,000 feet of an existing 24- inch ductile iron force main. • Lee & Ro, Inc. prepared the plans and specifications in October, 2002, and the contract was awarded to Insituform Technologies, Inc. on November 20, 2002. • This change order is for the Adjustment of Engineers Quantities. There are no errors and omissions associated with this change order. Liquidated damages on this project are $750 per day and there are no bonus provisions. Contract Schedule Contract Start Date February 3, 2003 Original Contract Completion Date August 1, 2003 Total Number of Change Orders to Date 1 Current Contract Completion Date August 1 , 2003 Actual Completion Date August 1, 2003 Days Subject to Liquidated Damages 0 Revised: 06/04/03 Page 1 Change Order Content Item Description Amount Days Type 1 Adjustment of Engineer's Quantities ($15,529) 0 Other Total Change Order No. 1 ($15,529) 0 Please see the attached Change Order for additional information. Job Completion The project is 100°,o complete. PRIOR COMMITTEE/BOARD ACTIONS The contract was awarded by the Board of Directors on November 20. 2002. PROJECT/CONTRACT COST SUMMARY Original Contract Price $1,552,470 Previously Authorized Changes $0.00 This Change $(15,529) Change Orders to Date $(15,529) Percentage Decrease to Date (1.00%) Amended Contract Price $1,536,941 Funds will need to be reallocated from the Construction Phase to cover the expenditures to date for the Preliminary Design, Commissioning, and Close-Out Phases. The total budget of $1 ,996,000 will not change. BUDGET IMPACT ® This item has been budgeted. (FY 2003/2004: section 8, Page 17) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None ALTERNATIVES None Revised: 06/04/03 Page 2 CEQA FINDINGS This project is covered in the previously approved Master Plan/EIR. The project is exempt per CEQA Guideline Sections 15301(b) (d) 15303(d), and 15304 for Collection Facilities Engineering Projects. The Notice of Exemption was filed on August 6, 2002 with the County of Orange. ATTACHMENTS 1. Budget Information Table 2. Change Order Status Report 3. Change Order BP:lc G:\ntglobal\Agenda Draft Reports\PDC\5-29-R1 C01 COA Agenda Report110503.doc Revised: 06/04103 Page 3 BUDGET INFORMATION TABLE REHABILITATION OF 36-INCH FORCEMAIN(B)BETWEEN BITTERPOINT PUMP STATION AND JUNCTION BOX CONTRACT NO.5-29-Rl ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESTIMATED PROJECT/PHASE AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED TO AUTHORIZATION TOTAL EXPE1401TURE BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE !DECREASE Phase I-Project D"el em $ 5 Phase 2-Pretiminary Dovan 8,323 S 8.323 1.000 S 7.323 S 8.323 S 8,323 Phase 3-Devpn S 151.000 S 151.000 S 151,000 S 99,000 S 99,000 S 95,816 Phase 4-ConsMxllon S 1,770,000 S 1.770.000 S 14.92 S 1.7554073 S 1770.000 $ (14.927) S 1.755.073 S 1,701.230 Phase 5-cm-sslon' $ 3,000 S 3.000 S 4.274 S 7,274 S 3.000 $ 4274 S 7.274 S 7.274 Phase 6-Ctowoul S 3.000 $ 3.000 S 2.330 S 5.330 S 3,000 S 2330 S 5.330 S 6.330 Phase 7-ContIngency S 69.000 $ 69,000 S 69,000 S PROJECT TOTAL I996,000 $ 1,996,000 S - $ 1.996.000 1.876.00 S (i 0001 S 1.875.000 S 1.817,972 Reimbursable Coos PROJECT NET S 1 996,000 S 1.996.000 $ - $ 1.996.000 - 1.876.000 S (1.000) S 1.875,000 I S 1,817,972 PSAIConlracl �,,u S 60.000 1$ 60,000 $ S �1. 0 59,290 S S 59.2 59.100 00onact $ 1.740.000 S 1.592.470 S 1.5S2.470 $ (15.529) S 1.536.941 1 S 1.383.598 REHABILITATION OF 36-INCH FORCEMAIN(B)BETWEEN BITTER POINT PUMP STATION AND JUNCTION BOX CONTRACT NO.5-29-R1 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED ITEM DATE COST TO DATE INCREASE TIME TIME TO DATE (CUMULATIVE) (DAYS) (DAYS) CONTRACT 2/3/2003 $ 1,552,470.00 $ 1,552,470.00 0.00% 180 180 77 000, Page 1 of 3 ORANGE COUNTY SANITATION DISTRICT 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Insituform Technoligies, Inc. C.O. No. One (1) Date: Nov. 19 2003 Job: Rehabilitation of 36-Inch Forcemain (B) Between Bitterpoint Pump Station and Junction Box Consultant: Lee & Ro Amount of this Change Order(Deduct) $ 1( 5,529) In accordance with contract provisions, the following changes in the contract and/or contract work are hereby authorized and as compensation, the following additions to or deductions from the contract price are hereby approved. ITEM -ADJUSTMENT OF ENGINEERS'S QUANTITIES Item Unit Description From To Diff. Total 4 Actual Utility relocation allowance $30,000 $16,740 ($13,260) ($13,260) Cost 14 L.S. Misc. requirements of contract documents $10,000 $ 7,731 ($ 2,269) ($ 2,269) CREDIT THIS CHANGE ORDER ITEM: $(15,529.00) TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL CREDIT COST THIS CHANGE ORDER: $(15,529.00) TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days Page 2of3 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Insituform Technoligies, Inc. C.O. No. One (1) Date: Nov. 19, 2003 Job: Rehabilitation of 36-Inch Forcemain (B) Between Bitterpoint Pump Station and Junction Box Consultant: Lee & Ro The additional work contained within this Change Ordercan be performed incidental to the prime work and within the time allotted for the original Contract and any extensions to the Contract time made by this and all previously issued Change Orders. It is therefore mutually agreed that no time is required for this Change Order, and no direct or indirect, incidental or consequential costs,expenses, losses or damages have been or will be incurred by Contractor, except as expressly granted and approved by this Change Order. SUMMARY OF CONTRACT TIME Original Contract Date: February 3, 2003 Original Contract Time: 180 Calendar Days Original Completion Date: August 1, 2003 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: 0 Calendar Days Revised Contract Time: 180 Calendar Days Revised Final Completion Due Date: August 1, 2003 Time Subject to Liquidated Damages: N/A Actual Final Completion Date: August 1, 2003 Original Contract Price $1,552,470.00 Prev. Authorized Changes $ 0.00 This Change (Add)(Deduct) $ (15,529.00) Amended Contract Price $1,536,941.00) Page 3 of 3 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Insituform Technoligies, Inc. C.O. No. One (1) Date: Nov. 19, 2003 Job: Rehabilitation of 36-Inch Forcemain (B) Between Bitterpoint Pump Station and Junction Box Consultant: Lee & Ro Board Authorization Date: November 19, 2003 ORANGE COUNTY SANITATION DISTRICT Recommended by: John Linder, P.E. Construction Manager Date Approved by: David Ludwin, P.E. Director of Engineering Date Accepted by: INSITUFORM TECHNOLOGIES, INC. Contractor Date EDMS:003756073 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/06/03 11/19/03 AGENDA REPORT Item Number Item Number PDC03-82 13(c Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Dean Fisher. Senior Engineer SUBJECT: PRIMARY CLARIFIERS 16-31 AND RELATED FACILITIES, JOB NO. P1-37 GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 10 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of $56,041, increasing the total contract amount to S71 ,198,134. SUMMARY Background • Job Number P1-37, Primary Clarifiers 16-31 and Related Facilities, includes the construction of 16 new primary clarifiers with all support equipment, improvements to existing Primary Clarifiers 6-15, and improvements to Primary Clarifiers 1-5. • Brown and Caldwell prepared the plans and specifications and the contract was awarded to Margate Construction on October 24, 2001 . • This change order includes 11 items of additional work, and 2 items of deleted work. There are no errors and 4 omissions associated with this change order. Liquidated damages on this project are $3,000 per day and there are no bonus provisions. Contract Schedule Contract Start Date January 7, 2002 Original Contract Completion Date November 7, 2005 Total Number of Change Orders to Date 10 Current Contract Completion Date April 8, 2006 Actual Completion Date N/A Days Subject to Liquidated Damages 0 Page 1 b Change Order Content Item Description Amount I Days Type 1 Security Barricades 9341 0 Other 2 Sludge Collector Structural Support 1,757 0 Design Change 3 Influent Channel Opening 7,899 0 Design Change 4 Top Deck Structural Connections 5,758 0 Omission 5 PVC Ball Valve Operators 0 0 Omission 6 Drain Line Connection (-2,200 0 Design Change 7 Station Battery Upgrade 4,825 0 Design Change 8 Centerfeed Channel Shoring 1,515 0 Omission 9 Power Building 7 Exterior Finish -6,576 0 Design Change 10 Dilute Sludge Pump Motor Cables 5,136 0 Omission 11 Unsuitable Materials Removal 13,452 0 Changed Condition 12 Power Bldg 7 Paving and Drainage 17,960 0 Design Change 13 Paving Modifications 5,581 0 Changed Condition Total Change Order $56,041 0 Job Completion The project is 601-o complete. PRIOR COMMITTEE/BOARD ACTIONS The contract was awarded by the Board of Directors on October 24, 2001 . Please refer to the attached Change Order Status Report for more information on previous change orders. PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 70,366,000 Previously Authorized Changes S 776,093 This Change S 56,041 Change Orders to Date S 832,134 Percentage Increase to Date 1 .18 % Amended Contract Price S 71.198,134 BUDGETIMPACT ® This item has been budgeted. (Line item: Section 8, CIP. P1-37) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Page 2 d ADDITIONAL INFORMATION None. ALTERNATIVES No alternatives are proposed. CEQA FINDINGS This project was included in the Strategic Plan EIR that was certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. ATTACHMENTS 1. Budget Information Table 2. Change Order Status Report 3. Change Order 4. Location and Photo Description of Change Order GC:ms GAntglobaMgenda Draft Reports\PDC\P1-37 AR 092503.doc Page 3 BUDGET INFORMATION TABLE Primary Clarifiers No.16-31 and Related Facilities Job No.P1-37 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS .THIS PROPOSED ESTIMATED ESTIMATED PROJECTIPHASE AUTHORIZED PROJECT BUDGET REIASED AUTHORIZED AUTHORIZATION TOTAL EXPENDITURE TO EXPENDED BUDGET BUDGET INCREASE BUDGET TO DATE REQUEST AUTHORIZATIOti DATE TO DATE('..) Phase I-Pr --t Dew 77.000 77.000 77,000 $ 7.000 S 76.974 100•. Phase 2-Prelnlunary Door n S 315o00 7 315.000 315,000 S 315o0C $ 315.552 100-. Phase 3-Design S 4,542,000 4.542.000 4.542.000 S 4.542000 $ 4.546.501 100•. Phase 4-Construdion S 77.487.935 C.;1 77.543,976 --487.935 > ;(•.(1lI S 77,543.976 S 43.399.983 56•. Phases-Commissionin s 2811880 281,880 $ Phase 6-Closew: S 50.000 S 50 000 S Phase 7-Contnaenn S 5.807.1e5 S s751.— S PROJECT TOTAL S s 88.561.000 38561.000 S 82121.935 $ 56.041 S 82.477.976 $ -W 339,010 59•. Reimbumade Costs PROJECT NET I S S 88.561.000 $ > E8.561,000 S 82.421935 S -66,041 S 02.477.976 S 48,339A10 59 PSA/Contmct ��,sPSA S 5.205904 5205.904 S 5.205.904 S 5.205.904 S 4.570.221 ctlon(..OntraCl $ 71.1-*093 $ 58.041 1 71.198.134 $ 71.142.093 $ 66,041 S 71.198,134 S 35.217.897 49•. ' Note:Authonzed Funds and Expenditures to Date in Phase 4 include Construction AdministinUon and Inspection costs from previous phasing prior to 71V03. CHANGE ORDER STATUS REPORT PRIMARY CLARIFIERS 16-31 AND RELATED FACILITIES JOB NO.P1-37 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE (DAYS) (DAYS) CONTRACT 6/2 311 9 9 9 $ 70,366,000.00 $ 70,366,000.00 0.00 1400 1400 CO NO.1 12/19/2001 $ - $ 70,366,000.00 0.00 0 1400 `CO NO.2 8/1/2002 $ 75,214.00 $ 70,441,214.00 0.11 49 1449 CO NO.3 10/21/2002 $ 48,736.00 $ 70,489,950.00 0.18 0 1449 CO NO.4 12/18/2002 $ 356,059.00 $ 70,846,009.00 0.68 82 1531 CO NO.5 2/26/2003 $ 33,527.00 $ 70,879,536.00 0.73 0 1531 CO NO.6 4/23/2003 $ 54,992.00 $ 70,934,528.00 0.81 21 1552 CO NO.7 6/25/2003 $ 14,750.00 $ 70,949,278.00 0.83 0 1552 CO NO.8 8/27/2003 $ 5,363.00 $ 70,954,641.00 0.84 0 1552 CO NO.9 10/22/2003 $ 187,452.00 $ 71,142,093.00 1.10 0 1552 "Q9! b �,,�0. ;�now�`�04 )t�9,1552 Approved by PDC Committee per delegated authority by Board Resolution 99-23 Approved by General Manager per delegated authority by Board Resolution 99-23 a Page 1 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY,CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Ten 10 Date: November 19, 2003 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell Amount of this Change Order(Add)(DedUet) $56,041.00 In accordance with contract provisions,the following changes in the contract and/or contract work are hereby authorized and as compensation, the following additions to or deductions from the contract price are hereby approved. ITEM 1 —SECURITY BARRICADES This item provided temporary vehicle security barricades at Plant 1. Several concrete "K" rail barricades were installed at (5) entry gates on 3/20/03, 4/02/03, and 5/21/03. This work was not included in the contract, and was requested by District security personnel for compliance with threat level "Orange"warnings issued by the US Department of Homeland Security. The work was accomplished on contractor's force account pursuant to Section 48 (B) 2 of the General Requirements (Reference FCO-P137-72). ADDED COST THIS CHANGE ORDER ITEM: $934.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 2—SLUDGE COLLECTOR STRUCTURAL SUPPORT This item provides additional structural support for the Primary Clarifiers 16-31 sludge collector drive mechanisms. Stainless steel plates embedded in the clarifier walls support the collector drives. For each plate, (2) 4"x 3/8"stainless steel bolts and (4) 12"x 3/8"stainless steel bolts were welded to the embed portion of the plates, for a total of (32) 4" bolts and (64) 12" bolts. Staff determined that this additional anchorage was warranted as added insurance at a minimal cost. The work was accomplished on contractor's force account pursuant to Section 48 (B)2 of the General Requirements (Reference FCO-P137-78). ADDED COST THIS CHANGE ORDER ITEM: $1,757.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 3— INFLUENT CHANNEL OPENING This item modifies the detail specified for sealing (2) existing 60-inch openings in the invert of the east and west Influent channels. The specified design provided a concrete fill with waterstop. This change adds a stainless steel plate and gasket. Staff recommends this design enhancement in order to avoid the possibility of leakage between the wet influent channels and the dry galleries below. The costs associated with this Change Order item were negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-13137-113). ADDED COST THIS CHANGE ORDER ITEM: $7,899.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days .p Page 2 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Ten 10 Date: November 19, 2003 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell ITEM 4—TOP DECK STRUCTURAL CONNECTIONS This item provides additional concrete reinforcement associated with the connection of the proposed Primary Clarifiers 16-31 to the existing Primary Clarifiers 6-15 top deck. It was not possible to construct this connection as shown on the plans. The angle between the existing top deck slope and the new deck slope prevented insertion of the reinforcing steel into the existing couplers, and the existing couplers did not match the size of dowels required by the plans. The work includes butt welding of splice bars, added threaded dowels, and field cutting dowels. The costs associated with this Change Order item were negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-121). ADDED COST THIS CHANGE ORDER ITEM: $5,758.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 5— PVC BALL VALVE OPERATORS This item replaces the specified PVC ball valve operators and their associated electrical circuits. This change is necessary in order to provide the appropriate operators to the specified valves. The operators originally specified have a minimum torque output of 380 ft-Ibs, while the specified ball valves are designed for only 3 to 33 ft-Ibs. Replacing the operator with a lighter-duty model also required a power circuit change from 480 volts to 120 volts. The originally specified operator was supplied with an integral control panel, but the lighter duty operator is not, and requires the purchase and installation of an additional panel.The net results of the changes in this item is no additional cost to the Contract. The costs associated with this Change Order item were negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-PI37-124). ADDED COST THIS CHANGE ORDER ITEM: $0.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 6— DRAIN LINE CONNECTION This item provides a credit to change the location of the specified chemical area drain line connection to the existing sewer. The specified design provided a new 6" line connecting to the existing Waste Side Stream sewer manhole at the intersection of North Perimeter Road and Fuentes Road. This alternate connects to the existing 8" polymer facility drain line south of the new construction. This change reduces disruption to Plant operations and eliminates costs associated with excavation, shoring, paving, sidewalk, and curb and gutter replacement. The costs associated with this Change Order item were negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-125). CREDIT THIS CHANGE ORDER ITEM: $(2,200.00) TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days a. Page 3 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Ten 10 Date: November 19, 2003 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell ITEM 7—STATION BATTERY UPGRADE This item provides a maintenance free station battery in Power Building #7, in lieu of the specified battery. This change was requested by the District Operations department in order to reduce future costs associated with battery maintenance. This upgrade eliminates the need for monitoring and maintenance of liquid levels in the batteries, and provides a battery with a longer service life. The costs associated with this Change Order item were negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-128). ADDED COST THIS CHANGE ORDER ITEM: $4,825.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 8—CENTERFEED CHANNEL SHORING This item provides modifications to shoring at the north end of the Phase 1 Centerfeed Channel. This work is required in order to eliminate conflicts between Phase 1 conduit installation and shoring supporting the new centerfeed channel. The shoring supports a cantilevered portion of the new centerfeed channel, and must remain until Phase 2 improvements are completed. This requirement was not specified in the Contract Documents. The costs associated with this Change Order item were negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-130). ADDED COST THIS CHANGE ORDER ITEM: $1,515.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 9— POWER BUILDING 7 EXTERIOR FINISH This item modifies the exterior finish of Power Building 7 from the specified Exterior Insulation and Finish System (EIFS) to a stucco finish. This change provides a more durable and impact resistant finish at a lower cost to the District, and also will match the finish of the similar existing buildings at the District. The costs associated with this Change Order item were negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-132). CREDIT THIS CHANGE ORDER ITEM: $(6,576.00) TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 10— DILUTE SLUDGE PUMP MOTOR CABLES This item changes the size of power cables for each of the (6) dilute sludge pumps from #8 AWG to #4 AWG. Per the National Electric Code (NEC), the minimum size cable for the 50 horsepower pumps is #4. The plans specified #8. This change is necessary for compliance with codes regarding equipment safety, and was discovered prior to the ordering of the specified cables. The costs associated with this Change Order item were negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FC0-P137-133). Page 4 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Ten 10 Date: November 19, 2003 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell ADDED COST THIS CHANGE ORDER ITEM: $5,136.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 11 — UNSUITABLE MATERIALS REMOVAL This item provides for the removal of 18-inches of undisclosed unsuitable soils below the proposed chemical facility, and replacement with select material. The soils consultant determined that the material was unsuitable, and recommended replacement with select material. The work was accomplished on contractor's force account pursuant to Section 48 (B) 2 of the General Requirements (Reference FCO-P137-90). ADDED COST THIS CHANGE ORDER ITEM: $13,452.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 12— POWER BUILDING 7 PAVING AND DRAINAGE This item modifies the paving and drainage around Power Building #7 to provide a uniform ground surface. The installation of an electrical vault next to an existing drainage basin created uneven ground surfaces and a potential vehicular hazard. To improve this condition, the basin was moved 30 feet north of it's original location, allowing the surrounding area to be raised. This additional paving provided a uniform finished surface between the existing paving, the drainage basin,the vault manholes, and the building. This change includes approximately 1,000 SF of additional paving, (1) new TxT drainage basin, (30) feet of 8-inch PVC pipe, and a connection to the existing drainage system. The work was accomplished on contractor's force account pursuant to Section 48 (B) 2 of the General Requirements (Reference FCO-P137-98, FCO-P137-106). ADDED COST THIS CHANGE ORDER ITEM: $17,960.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 13—PAVING MODIFICATIONS This item provides additional asphalt removal and base related to joining existing pavement sections in Fuentes Road. During construction, it was discovered that the existing pavement section was thicker than anticipated. The specifications require sawcutting and removal of the existing pavement edge in orderto provide a uniform surface for joining the new pavement. Because of the existing pavement was thicker than anticipated, there was more material to remove and more base needed in order to bring the foundation up to the subgrade level. The work was accomplished on contractor's force account pursuant to Section 48 (B) 2 of the General Requirements (Reference FCO-P137-116). ADDED COST THIS CHANGE ORDER ITEM: $5,581.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL ADDED COST THIS CHANGE ORDER: $56,041.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days Page 5of6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Ten 10 Date: November 19, 2003 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell The additional work contained in this Change Order can be performed incidental to the prime work and within the time allotted for the original Contract and any extensions to the Contract time made by this and all previously issued Change Orders. It is therefore mutually agreed that no extension of time to perform the work is required for this Change Order. District and Contractor agree that the added cost described above constitutes full and equitable consideration for all the impacts incurred by the Contractor, and no other direct or indirect, incidental or consequential costs, expenses, losses or damages have been or will be incurred by Contractor, except as expressly granted and approved by this Change Order. SUMMARY OF CONTRACT TIME Original Contract Date: January 7, 2002 Original Contract Time: 1,400 Days Original Completion Date: November 7,2005 Time Extension this C.O.: 0 Days Total Contract Time Extension: 152 Days Revised Contract Time: 1552 Days Revised Final Completion Due Date: April 8, 2006 Time Subject to Liquidated Damages: N/A Actual Final Completion Date: N/A Original Contract Price $ 70,366,000.00 Prev. Authorized Changes $ 776,093.00 This Change (Add) (Deduet) $ 56,041.00 Amended Contract Price $ 71,198,134.00 I I I I " t Page 6 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Ten 10 Date: November 19, 2003 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell Board Authorization Date: November 19, 2003 ORANGE COUNTY SANITATION DISTRICT Recommended by: John D. Linder, P.E. Date Construction Manager Approved by: David A. Ludwin, P.E. Date Director of Engineering Accepted by: MARGATE CONSTRUCTION Contractor Date EDMS/003755733 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/06/2003 11/19/2003 AGENDA REPORT Item Number Item Number PDC03-83 13(d) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Julian Sabri, Engineer SUBJECT: AREA CLASSIFICATION STUDY IMPLEMENTATION PLAN PLANT NOS. 1 and 2, JOB NO. J-35-2 GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 4 to Area Classification Study Implementation Plan. Plant Nos. 1 and 2, Job No. J-35-2, with J.F. Shea Construction, Inc., authorizing an addition of $197,094, increasing the total contract amount to $14,731 ,356. SUMMARY Background • This project upgrades Plant Nos. 1 and 2 to comply with the National Electrical Code (NEC) by utilizing NFPA 820 Standard. The work includes modification of ventilation systems to meet the code requirements, replacement or modification of electrical systems, installation of a fire alarm system in the tunnels, and replacement/ relocation of digester and natural gas piping. • The plans and specifications were prepared by Parsons/Lee & Ro and the contract was awarded to J.F. Shea Construction, Inc., on June 26, 2002. • Change Order No. 4 includes three items of added work. There are no errors and three omissions associated with this change order. Liquidated damages on this contract are $3,000 per day and there are no bonus provisions. Contract Schedule Contract Start Date September 16, 2002 Original Contract Completion Date June 17, 2005 Total Number of Change Orders to Date 4 Current Contract Completion Date June 17. 2005 Actual Completion Date N/A Days Subject to Liquidated Damages N/A Page 1 4 Change Order No. 4 Content Item Description Amount Days Type No. 1 Electrical Modifications at Plant No. 1 $91 ,041 0 Omission 2 Electrical Modifications at Plant No. 2 10,123 0 Omission 3 Mechanical/Structural Modifications 95,930 0 Omission at Plant Nos. 1 and 2 Total — Change Order No. 4 $197,094 0 Item 1 includes added explosion proof conduit seals, junction boxes, conduit and fittings that were not shown on the contract documents. These items were necessary to bring the conduit system into compliance with NFPA 820 (National Fire Protection Association) code. Item 3 modifies roof pads and adds supports for new roof-mounted ventilation fans at digester pump rooms and clarifiers. After field observations, during the construction phase, the design consultant determined that additional supports were required to reinforce the existing concrete roofs, to account for the holes that were cut for the new HVAC duct penetrations. Job Completion This project is now 53% complete. PRIOR COMMITTEE/BOARD ACTIONS The contract was awarded by the Board of Directors on June 26, 2002. Please refer to the attached Change Order Status Report for information on all previous change orders. PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 14,066,442 Previously Authorized Changes $ 467,820 This Change $ 197,094 Change Orders to Date $ 664,913 Percentage Increase to Date 4.73% Final Contract Price $ 14,731,356 Funds for this change order will be transferred form Phase-3 (Design) to Phase-4 (Construction). BUDGETIMPACT ® This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Page 2 ADDITIONAL INFORMATION None ALTERNATIVES None CEQA FINDINGS This project is categorically exempt from CEQA requirements ATTACHMENTS 1. Budget Information Table 2. Change Order Status Report 3. Change Order 4. Location and Photo Description of Change Order JBF:dm WntgfobaMgenda Draft Reports\PDC\J-35-2 CO#4 ARA= Page 3 f v t, BUDGET INFORMATION TABLE AREA CLASSIFICATION STUDY IMPLEMENTATION PLAN PLANT NOS.1&2 JOB NO.J-35-2 ORIGINAL CURRENT PROPOSED PROPOSED RINDS THIS PROPOSED ESTIMATED E571S1ATED PROJECT/PHASE AUTHORIZED PROJECT BUDGET REVISED AUTHORIZEOTO AUT14DAMATION TOTAL EXPENDITURE EXPENDEDTO BUDGET BUDGET INCREASE BUDGET DATE REOUEST AUTHORIZATION TO DATE DATE(%) /DECREASE Phut-Pm—D-4 t S 106.0DO S S 106OOD $ 106.000 $ 106.D00 100•. Phase 2-Pnhm. S 682.0001 S S 682 OOD I S S82.000 I S 682.0DO 100•. Phase 3-D S 3.745.000 S 4.837,000 S 12532000 S 2.3O5.000 S 2.305,000 $ 2.305.000 S 2.286.508 99•. Phan 4-Cmt9t.0 S 21.307.170 S 14.689.000 S 2.532000 17221,000 S 14,689000 2:532ODD 17221000 $ 68260714 51•. Phase 5-Gornmmawn $ 281.328 S 281,000 S S 2811000 - S - S Phase 6-Cb6a-Ou S 70.332 S 70.000 S - S 70.000 S Pt—7- S 3 153.170 S 1.406.000 S 1.406.000 S PROJECT TOTAL 29.345.000 S 21.283.000 S S 21.283.000 5 17.782.000 S 2,132.. S 20.314.000 S 11.901222 59•. ReimlwrsoMa Corsts PROJECT NET 5 29.345.000 S 21.283000 1$ S 21.283.000 I I S 17.782.000 I S 2.532.000 1$ 20.314,000 1 S 11,901.222 59•. PSA/Co tract D nPA S 3Al 1,411 S 3411411 3.411411 11 S 3.411.411 3.411,411 1 S 3,019,281 89'. Can91n1clron ContraG S 14,066,442 1$ 14,534.262 1 S 197.004 $ 14.731.356 S 14.534.262 1 S 197,004 $ 14,731.356 1$ 7,818,499 53•. >i a CHANGE ORDER STATUS REPORT Area Classification Study Implementation Plan,Plants 1 and 2 Job No.J-35-2 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE (CUMULATIVE) (DAYS) (DAYS) CONTRACT 9/16/2002 $ 14,066,442.00 $ 14,066,442.00 0.00% 1006 1006 CO NO.1" 5/1/2003 $ 115,280.00 $ 14,181,722.00 0.82% 0 1006 CO NO.2" 9/4/2003 $ 83,195.00 $ 14,264,917.00 1.41% 0 1006 CO NO.3 10/22/2003 $ 269,345.00 $ 14,534,262.00 3.33% 0 1006 9 ( $.. 14,731',3SS;00 4.73/0 CO:N0.4 "Pendin $ 97,094: I 00° Approval by PDC Committee per Delegated Authority By Board Resolution 99-23 a Page 1 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: J.F. Shea Construction, Inc. C.O. No.: Four 4 Date: November 19, 2003 Job: Area Classification Study Implementation Plan, Plants 1 and 2, Job No. J-35-2 Consultant: Parsons/Lee & Ro Amount of this Change Order(Add)(Dedust) $197,094.00 In accordance with contract provisions,the following changes in the contract and/or contract work are hereby authorized and as compensation therefor, the following additions to or deductions from the contract price are hereby approved. ITEM 1 — ELECTRICAL MODIFICATIONS AT PLANT NO. 1 The Contractor was directed to furnish labor, materials and install electrical modifications that meet classified area requirements and were not shown on the contract documents. A summary of the items and associated costs is as follows: Item Quantity Cost Reference a) Add receptacle seals on the main floor and basement of the gas compressor basement. 6 $ 1,702 FCO No. 10 b) Change conduit fittings, boxes, devices to explosion proof and replace conductors on the main floor of the gas compressor building. varied items 17,258 FCO No. 15 c) Research conduits and conductors at primary sedimentation basins 1 and 2 to determine area classification requirements. The conduit systems were not shown on the contract drawings. varied items 4,027 FCO No. 41 d) Add explosion proof seals and flex conduit at sedimentation basins 1 and 2. The dome/cover areas were not shown on the contract drawings. varied items 15,483 FCO No. 43 e) Research existing conduits and conductors at primary clarifiers 3, 4, and 5 to determine area classification requirements. The conduit systems were not shown on the contract drawings. varied items 5,398 FCO No. 55 f) Add explosion proof seals to 3/a"and 1" conduits on the top deck of the grit chambers. The conduits were not shown on the contract documents to be upgraded to the new area classification. 10 7,444 FCO No. 77 g) Add conductors at primary sedimentation basins 1 and 2. The contract drawings did not show the correct number of conductors and sizes to be replaced. 9,125 LF 16,797 FCO No. 78 h) Add additional 1 1/2" control conduit and conductors between the RIO panel and MCC CGA at the gas compressor building. This was not shown on the contract documents. 13,000 LF 20,484 FCO No. 87 Page 2 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: J.F. Shea Construction, Inc. C.O. No.: Four 4 Date: November 19, 2003 Job: Area Classification Study Implementation Plan, Plants 1 and 2, Job No. J-35-2 Consultant: Parsons/Lee & Ro Item Quanti Cost Reference i) Relocate 3/4'conduit and conductors on the side of The precast bridge between digesters 9 & 10. 20 LF 2,448 FCO No. 127 This additional work was negotiated with the Contractor pursuant to Section 43 (B) 1) of the General Requirements, Division 01. ADDED COST THIS CHANGE ORDER ITEM: $91,041.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 2 — ELECTRICAL MODIFICATIONS AT PLANT NO. 2 The Contractor was directed to furnish labor, materials and install electrical modifications that meet classified area requirements and were not shown on the contract documents. A summary of the items and associated costs is as follows: Item Quanti Cost Reference a) Relocate new programmable logic controller(PLC) in power building 3A control room. The location shown on the contract drawings was already occupied by existing equipment. 1 $ 2,948 FCO No. 52 b) Relocate lighting control panel "LCPU"from digester L&M outside the MCC room. It was necessary to Relocate the lighting panel to provide space for a new remote input output (RIO) cabinet. 1 7,175 FCO No. 86 This additional work was negotiated with the Contractor pursuant to Section 43 (B) 1) of the General Requirements, Division 01. ADDED COST THIS CHANGE ORDER ITEM: $10,123.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days CS A Page 3 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: J.F. Shea Construction, Inc. C.O. No.: Four 4 Date: November 19, 2003 Job: Area Classification Study Implementation Plan, Plants 1 and 2, Job No. J-35-2 Consultant: Parsons/Lee & Ro ITEM 3—MECHANICAUSTRUCTURAL MODIFICATIONS AT PLANT NOS. 1 AND 2 The Contractor was directed to furnish labor, materials and install mechanical and structural modifications that meet classified area requirements and were not shown on the contract documents. A summary of the items and associated costs is as follows: Item Quantity Cost Reference a) Modify existing bridge between digesters O and T to install new digester gas pipe supports at Plant No. 2. 1 $ 1,442 FCO No. 4 b) Furnish and install panic door hardware on seven new fiberglass doors located at Plant Nos. 1 and 2. 7 1,657 FCO No. 6 c) Reroute new gas piping on the roof of digester 15, to not exceed maximum pipe support height at Plant No. 1. 1 2,066 FCO No. 42 d) Coat fan wheels for corrosion protection on 4 HVAC heat pumps located at Plants 1 and 2. 4 3,174 FCO No. 81 e) Add platform extensions to increase landing area on each side of bridge No. 1 on digester 11 at Plant No. 1. 2 5,716 FCO No. 83 f) Furnish and install hatch with support frame and modify ladder at digesters E&H and I&J pump rooms at Plant No. 2. 2 4,575 FCO No. 108 g) Furnish water resistant wall board for partitions in locations shown on the contract drawings at Plant Nos. 1 and 2. Process areas require water resistant wall board. all locations 443 FCO No. 133 h) Modify side mounted pipe supports on digesters E&F at Plant No. 2, to avoid interference with the existing walkway. 7 581 FCO No. 134 i) Modify fan roof pads and roof supports at digester pump rooms, electrical rooms, metering and diversion structure, bin loading, and primary clarifiers at Plant No. 1. 7 19,764 FCO No. 137 j) Modify fan roof pads and roof supports at digester pump rooms and clarifier pump rooms at Plant No. 2. 12 31,815 FCO No. 138 k) Modify entry wall and railing at digester I&J pump room at Plant No. 2. 1 (207) FCO No. 157 1) Relocate bridge No. 4 and reduce width on digesters E&H, due to conflict with new digester pipe lines at Plant No. 2. 1 9,040 FCO No. 162 m) Construct concrete filter pads for air supply filters located on digesters C&D and F&G and primary clarifiers L&M and P&Q at Plant No. 2. Filter pads were not shown on the contract drawings 4 3,289 FCO No. 174 0 Page 4 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: J.F. Shea Construction, Inc. C.O. No.: Four 4 Date: November 19, 2003 Job: Area Classification Study Implementation Plan, Plants 1 and 2, Job No. J-35-2 Consultant: Parsons/Lee & Ro Item Quanti Cost Reference n) Change overflow box caulked seals to welded flange box connections at digesters C,D,E,F,H,J,L,M, and P at Plant No. 2. Overflow boxes were shown as concrete on the contract drawings but were actually constructed of stainless steel. These boxes were changed on a recent project which was not completed at the bid time of this project. 9 4,338 FCO No. 182 o) Furnish and install 2 additional steel support beams and connections at the gas compressor building at Plant No. 2. The new support beams were not shown on the contract drawings and were added to provide additional support for installation on new gas piping on the roof. 2 8,237 FCO No. 185 This additional work was negotiated with the Contractor pursuant to Section 43 (B) 1) of the General Requirements, Division 01. ADDED COST THIS CHANGE ORDER ITEM: $95,930.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL COSTS THIS CHANGE ORDER: $197,094.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days s ' Page 5 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: J.F. Shea Construction, Inc. C.O. No.: Four 4 Date: November 19, 2003 Job: Area Classification Study Implementation Plan, Plants 1 and 2, Job No. J-35-2 Consultant: Parsons/Lee & Ro The additional work contained within this Change Order can be performed incidental to the prime work and within the time allotted for the original Contract and any extensions to the Contract time made by this and all previously issued Change Orders. It is therefore mutually agreed that no extension of time to perform the work is required for this Change Order, and that no direct or indirect, incidental or consequential costs, expenses, losses or damages have been or will be incurred by Contractor, except as expressly granted and approved by this Change Order. SUMMARY OF CONTRACT TIME Original Contract Date: September 16, 2002 Original Contract Time: 1,006 Calendar Days Original Completion Date: June 17, 2005 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: 0 Calendar Days Revised Contract Time: 0 Calendar Days Revised Completion Date: Not Applicable Time Subject to Liquidated Damages: Not Applicable Actual Final Completion Date: Not Applicable Original Contract Price $ 14,066,442.00 Prev. Authorized Changes $ 467,820.00 This Change (Add) (DedUGt) $ 197,094.00 Amended Contract Price $ 14,731,356.00 1 i . Page 6 of 6 ' ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: J.F. Shea Construction, Inc. C.O. No.: Four 4 Date: November 19, 2003 Job: Area Classification Study Implementation Plan, Plants 1 and 2, Job No. J-35-2 Consultant: Parsons/Lee & Ro Board of Directors Authorization Date: November 19,2003 ORANGE COUNTY SANITATION DISTRICT Submitted by: John D. Linder, P.E. Date Construction Manager Approved by: David A. Ludwin, P.E. Date Director of Engineering Accepted by: J.F. SHEA CONSTRUCTION, INC. Contractor Date EDMS 003755558 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/06/03 11/19/03 AGENDA REPORT Item Number Item Number PDC03-86 13(e) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Pam Koester, Project Manager SUBJECT: Long Term Flow Monitoring Program, Job No. J-73-2 GENERAL MANAGER'S RECOMMENDATION (1) Approve a budget Amendment of $4,222,000 for Long Term Monitoring Program. Job No. J-73-2, for a project budget of S7,074,000: and (2) Approve Amendment No. 2 to the Professional Services Agreement with ADS Environmental Services for additional flow monitoring and analysis for an additional amount of $125,000, increasing the total amount not to exceed $6,337,400. SUMMARY • The Orange County Sanitation District (District) initiated a comprehensive program to reduce wet weather flows caused by rain dependent infiltration and inflow (1/1) as part of the implementation of the District's Strategic Plan. One of the key elements of this program was the Long Term Flow Monitoring Program, Job No. J-73-2. • The Long Term Flow Monitoring Program, Job No. J-73-2, consists of locating flow meters throughout the District to monitor flows on a continuous basis for a period of five years. A Professional Services Agreement (PSA) was awarded to ADS Environmental Services (ADS) by the District's Board of Directors on October 25. 2000, in the amount of $6,187,400 to perform the flow monitoring activities. This contract was subsequently increased by $25,000 to $6,212,400 by Amendment No. 1 , as shown in the attached PSA Status Report. • During the Capital Improvement Program (CIP) validation process last fall, the "costs to date" of $4,220,000 were inadvertently left out of the project budget and only the future costs were included. • In order to complete this project in accordance with its objectives, it is requested that the current budget be increased by $4,222,000, from $2,852,000 back to the original budget amount of S7,074,000. • As part of the Program, it is necessary to remove and reinstall meters when sewers need to be cleaned. In addition, there are times when meters need to be relocated to get better data. It is requested that $125,000 be added to ADS's contract to pay for such activities as they occur. This would increase their fee from S6,212,400 to $6,337,400. GAwp.dtWagenda\Board Agenda Reports\2003 Board Agenda Reports\1103Utem 13(e).J-73.2.doc Revised: 06/04/03 Page 1 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/06/03 11/19/03 AGENDA REPORT Item Number Item Number PDC03-86 13(e) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Pam Koester, Project Manager SUBJECT: Long Term Flow Monitoring Program, Job No. J-73-2 GENERAL MANAGER'S RECOMMENDATION (1) Approve a budget Amendment of $4,222,000 for Long Term Monitoring Program, Job No. J-73-2, for a project budget of S7,074,000: and (2) Approve Amendment No. 2 to the Professional Services Agreement with ADS Environmental Services for additional flow monitoring and analysis for an additional amount of $125,000, increasing the total amount not to exceed $6,337,400. SUMMARY • The Orange County Sanitation District (District) initiated a comprehensive program to reduce wet weather flows caused by rain dependent infiltration and inflow (1/1) as part of the implementation of the District's Strategic Plan. One of the key elements of this program was the Long Term Flow Monitoring Program, Job No. J-73-2. • The Long Term Flow Monitoring Program, Job No. J-73-2, consists of locating flow meters throughout the District to monitor flows on a continuous basis for a period of five years. A Professional Services Agreement (PSA) was awarded to ADS Environmental Services (ADS) by the District's Board of Directors on October 25. 2000, in the amount of S6,187,400 to perform the flow monitoring activities. This contract was subsequently increased by $25,000 to $6,212,400 by Amendment No. 1, as shown in the attached PSA Status Report. • During the Capital Improvement Program (CIP) validation process last fall, the "costs to date" of S4,220,000 were inadvertently left out of the project budget and only the future costs were included. • In order to complete this project in accordance with its objectives, it is requested that the current budget be increased by $4,222,000, from S2,852,000 back to the original budget amount of S7,074,000. • As part of the Program, it is necessary to remove and reinstall meters when sewers need to be cleaned. In addition, there are times when meters need to be relocated to get better data. It is requested that $125,000 be added to ADS's contract to pay for such activities as they occur. This would increase their fee from S6,212,400 to $6,337,400. G:\wp.dta\agenda\Board Agenda Repons'2003 Board Agenda Reports\1101Ilem 13(e).J-73-2.doc Revised: 06/04/03 Page 1 PRIOR COMMITTEE/BOARD ACTIONS April 24, 2002- Board of Directors approval of a sole source purchase order to AT&T in the amount of $165,000 for phone services related to the Long Term Flow Monitoring Program. PROJECT/CONTRACT COST SUMMARY See the attached Budget Information Table. Approval is being requested to increase the project budget by $4,222,000 from $2,852,000 back to the original project budget amount of $7,074,000. Further, approval is being requested to increase ADS Environmental Services (ADS) contract by $125.000 from $6,212,400 to $6,337,400. BUDGET IMPACT ❑ This item has been budgeted. (Line item: Section 8, Page 142) ® This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) As shown on the Budget Information Table, 54,156,569 has been spent to date on this project. The requested additional budget is needed to restore the budget to its original amount and allow the transfer of funds from contingency to the design consultant. The transfer of funds is reflected in the attached Budget Information Table. ADDITIONAL INFORMATION The purpose of the Long Term Flow Monitoring Program, Job No. J-73-2, is to identify major sources of infiltration and inflow (1/1) in the Orange County Sanitation District's (District) trunk sewers and local agency tributary sewers. The Program consists of collecting wastewater flow data at 150 locations throughout the District over a five-year period. Before the current Capital Improvement Program (CIP) validation process was completed last fall, the original total approved budget for this project was 57,074,000 of which 56,212,400 was for ADS Environmental Services to conduct the flow monitoring; $494,000 was for District staff; and $367,600 was set aside as contingency. During the current year's budgeting process, the "costs to date" were inadvertently left out of the 2003-04 Capital Improvement Program Budget. Hence, the total Project Budget in the 2003-04 Budget Book is now being shown as $2,852,000 instead of the required $7,074,000. In order to meet one of the District's primary Strategic Plan goals of reducing 1/1 over the next 20 years by 20%. it is essential that entire original budget for the Long Term Flow Monitoring Program, Job No. J-73-2, be reinstated. The ADS contract includes a clause that requires the District to pay ADS $1,000 each time a meter is taken out and replaced during routine sewer cleaning. This process has occurred numerous times since the beginning of the project, and will continue to occur G:\wp.dta\agenda\Board Agenda Repons\2003 Board Agenda Repor1s\1103\I1em 13(e).J-73-2.doc Revised: 06/04/03 Page 2 4 over the flow monitoring period. In addition, there are several instances where due to changes in flow diversion settings, it has become necessary to relocate some of the meters to better monitor the flows at these locations. It is anticipated that more flow meter relocations may be needed in the future. It is recommended that $125,000 be added to ADS Environmental Services (ADS) contract to cover the cost of taking the meters out of service or relocating them, and to conduct additional flow data analysis. ADS would only be allowed to spend these funds upon written authorization by Orange County Sanitation District (District) staff. This request would increase the PSA amount from $6,212,400 to $6,337,400. ALTERNATIVES Do not approve the budget requests. Not approving the budget requests would not allow the District to realize one of its important Strategic Plan goals. In addition, it would create an accounting problem because two ADS invoices have yet to be paid and District staff continues to charge to the project. CEQA FINDINGS This project is categorically exempt. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report PK:sa G:\ntglobal\Agenda Draft Reports\PDC\J-73-2 Agenda Report 9-4-03.doc G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 13(e).J-73.2.doc Revised: 06/04/03 Page 3 BUDGET INFORMATION TABLE LONG TERh7 FLOW MONITORING PROGRAM Job No.J-73-2 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESnMATED PROJECT:P BUDGET HASE AUTHORIZED PROJECT REVISED AUTHORIZED TO AUTNORtZATIOtJ TOTAL EXPENDITURE BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE /DECREASE Phase 1-Project Deve 58,000 S 60012 $ 60012 60.012 60.012 $ 60.012 Phase 2-Prelimirla Deslnn 2.000 S 787 S 767 S 787 787 S 787 Phase 3-Dell n S 33.000 S 38,104 $ 36.t04 S 36.104 £ 36,104 S 36,104 Phase 4.Const—bon S 6,613,400 $ 2.852.000 $ 3,872,497 S 6.724,497 $ 6.599.497 $ 125,000 $ 6,724.497 $ 4.078,189 Phase 5-Commissionm Phase 6.ClosrOut S 10.000 $ 10,000 S 10,000 S 10.000 Phase 7•Comingo-y S 367,600 $ 242.800 S 24,2 PROJECT TOTAL S 7 074.000 S 2.852,000 S 4,222000 $ 7.074.000 �7.1. 125.000 $ 6.B31 J0- 4,175.091 Reimbursable Costs I I I 18,523 PROJECT NET S 7D74000 1 S 2.352,000 $ 4.222.000 S 7.074.000 S 6.706,400 1$ 125.000 I S 6.831.400 $ 4.1_•�-- PSA/Contract Design PSA-Flow Monitmng $ 6209.000 S 2.852.ODD S 3A95.400 $ 6.337400 1 S 6.212.400 $125.000 S6.337.400 I S 3.924,3F0 ConstmcWn Contmel EDMS:003757555 Professional Services Agreement Status Report Long Term Flow Monitoring Program Job No. J-73-2 Total Project Budget: $7,074,400 Consultant: ADS Environmental, Inc. Start Date of Project: October 26, 2000 Date Addendum Description Cost Accumulated Costs Long Term Flow Monitoring Program including identification of monitoring sites; installation of 10/25/00 Original PSA flow monitors; and flow data collection and $6,187,400 $ 6,187,400 maintenance of flow meters for a period of 5 years *Amendment Additional data collection and conversion of 11/06/01 No 1 mapping database (GIS format). $25,000 $6,212,400 Proposed Amendment Additional flow meter relocations and data $125,000 $6,337,400 No. 2 analysis *General Manager Approval PK:sa EDMS: C03753551 Revised 091703 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/06/03 11/19/03 AGENDA REPORT Item Number Item Number PDC03-87 13 Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: David May, Project Manager SUBJECT: ELLIS AVENUE PUMP STATION REHABILITATION, JOB NO. 1-10 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 1 to the Professional Services Agreement with Malcom Pirnie, Inc., for Ellis Avenue Pump Station Rehabilitation, Job No. 1-10, providing for additional design engineering services for an additional amount of $400,055, increasing the total amount not to exceed $3,586,082. SUMMARY The requested Professional Services Agreement (PSA) amendment is based upon the following: • Pump station site investigation activities have increased in addition to those originally scoped. The increase in activities occurred as a result of two separate drivers. First, eight sites were investigated versus six sites originally scoped. This was the result of an Orange County Sanitation District (District) request after the PSA and original Scope of Work were awarded. Second, the District received substantial public input and inquiry into the sites considered and investigated resulting in three more sites (11 total) being considered. • Staff requested additional work to coordinate with Job No. 1-2-4, Bushard Trunk Sewer Replacement. • Staff has requested MPI to investigate the potential to divert flows destined for the Santa Ana River Interceptor (SARI) Trunk to the Newhope Trunk to potentially increase flows to Plant No. 1 . • The length of preliminary design has increased. Associated project management tasks have increased correspondingly. • The District will receive a credit of $13,300 for wet weather flow monitoring services not performed. PRIOR COMMITTEE/BOARD ACTIONS See attached PSA Status Report. G:vr;p.dta\agenda%Board Agenda ReportsM03 Board Agenda Reports\1103\Item 13(f),I-10.doc Revised: 06/04/03 Page 1 PROJECT/CONTRACT COST SUMMARY The total budget estimate for Ellis Avenue Pump Station Rehabilitation, Job No. 1-10, is S33.837.000. This request is for $400,055 for Amendment No. 1 to the PSA. If approved, the amendment will bring the PSA total to 53,586,082. Authorized funds will be moved from Contingency to the Preliminary Engineering Phase to cover the additional cost. See attached Budget Information Table for more information. The requested Amendment only covers additional services to date and through the Preliminary Design Phase. It is expected that PSA amendment requests will be made in the future for additional design and construction management services. BUDGET IMPACT ® This Item has been budgeted. (Line item: Project 1-10. Page 8-46 of 2003/2004 FY Budget Book) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Both Orange County Sanitation District's (District) 1989 Master Plan and 1999 Strategic Plan recommended equalizing flows to Plant Nos. 1 and 2 to provide the lowest overall new facilities capital cost program. The District's decision to change to full secondary treatment does not affect the recommendation. Each plan included moving treatment of SARI flows from Plant No. 2 to Plant No. 1 to balance the flows between the plants. However, the Department of Health Services (DHS) has since required that SARI flows continue to be treated at Plant No. 2. This is because the Plant No. 1 secondary effluent is the influent for Water Factory 21 and the Groundwater Replenishment System (GWRS). The District has begun the design to replace the current Ellis Avenue Pump Station to balance flows between the plants in concert with the DHS requirement to treat SARI flows at Plant No. 2. The originally contracted preliminary and final design services for the project consist of the following major elements: • Abandonment of the current Ellis Avenue Pump Station. The existing Ellis Avenue Pump Station was built in 1952 and was last rehabilitated in 1987. • Design of a new Ellis Avenue Pump Station and related site facilities. • Design of a new 84-inch interplant trunk sewer to divert ultimate SARI flows to Plant No. 2. • Design of diversion structures necessary to divert flows from the Miller Holder, Knott, and Magnolia Trunks to the new Ellis Avenue Pump Station. G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 13(f),I•10.doc Revised: 06104/03 Page 2 1 • Investigation into the diversion of flows away from the SARI Trunk to the Euclid and Newhope Trunks to reduce the amount of residential effluent flows in the SARI Trunk. To date, the District has initiated preliminary design services and the preparation of a Supplemental Environmental Impact Report (SEIR) for the project. Preliminary design cannot complete until the final SEIR has been prepared and is ready for Board certification. During the course of preliminary design and the preparation of the SEIR, MPI has been requested to provide additional engineering services. The additional services requested will aid the development of the SEIR and refine the District's engineering design. The following specific PSA amendment elements are proposed for approval by the Board: A. Project Schedule Extension: The scope of the PSA is requested to be amended to include additional project management services associated with the extended preliminary design schedule length. B. Additional SARI/Newhope Evaluation: The scope of the PSA is requested to be amended to include additional evaluation of the SARI/Newhope Trunk Sewers and the possibility of diverting flows intended for the SARI Trunk to the Newhope Trunk. C. Bushard Street Diversion Box Evaluation: The scope of the PSA is requested to be amended to include an evaluation of the Diversion Box to be installed in Bushard Street as part of Job No. 1-2-4. Staff has requested that MPI evaluate potential Diversion Box structural changes to meet Job No. 1-2-4 needs as well as Job No 1-10 needs. The completed analysis will optimize the Diversion Boxes for both projects. D. Additional Pump Station Site Evaluation (Prior to SEIR Public Input): The scope of the PSA is requested to be amended to include additional site evaluation services for the proposed Ellis Avenue Pump Station. The original PSA was based on screening six total sites to determine the four most feasible, and performing a detailed evaluation of the four most feasible sites. Early in preliminary design, one of the six original sites was eliminated from the screening process and three new sites were added, making a total of eight sites to be initially screened. The eight sites were screened to the four most feasible sites. The four most feasible sites received detailed evaluation. In addition to the number of sites screened, the District required additional qualitative criteria to be considered in the initial screening, which was in addition to the criteria proposed in the original PSA Scope of Work. All criteria, including the additional criteria, were used to screen the eight initial sites. The use of the criteria in the initial screening of the eight sites was more extensive than the original PSA Scope of Work included. The original PSA Scope of Work required fewer criterions to be evaluated in the first screening of sites considered. E. Bushard / Miller Holder Trunk Sewer Corrosion Study: The scope of the PSA is requested to be amended to include an evaluation of the corrosion potential for the Bushard and Miller Holder Trunk Sewers that will result when diverting flows to the Ellis Avenue Pump Station. Diverting flows will "dry up" a portion of the downstream piping of the trunks, exposing unlined pipe to corrosive conditions. The length of piping affected, and the period of exposure to corrosive conditions will be evaluated. G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\11011tem 13(f),I-10.dx Revised: 06/04/03 Page 3 r Modeling and additional engineering analysis will be used to determine the parameters and a technical memorandum will be produced to document the results of the evaluation. F. Pump Station Capacity Evaluation: The scope of the PSA is requested to be amended to include an evaluation of existing and projected flows to Plant Nos. 1 and 2 and to verify the basis of design for the proposed Ellis Avenue Pump Station. This additional evaluation will include the latest District Strategic Plan information, CIP Validation results, and other planning information that was not available at the time the original PSA was awarded. Basic planning assumptions changed that need to be accounted for in the design of the Ellis Avenue Pump Station. Accounting for these changed assumptions will ensure that the Pump Station is designed to meet all District criteria and constraints currently known. G. Additional Pump Station Site Investigation (After SEIR Public Input): The scope of the PSA is requested to be amended to include additional site investigation services for the proposed Ellis Avenue Pump Station. The additional investigation proposed under this task is to respond to public comment received at the August 25, 2003 public scoping meeting. The public was present to provide comment on the District's Notice of Preparation (NOP), mailed on August 8, 2003. The NOP is the first step in the SEIR process required by the California Environmental Quality Act (CEQA). The public requested that additional sites be considered as part of the screening process. H. Plant No. 1 Diversion Tunnel Design: To be determined later and not included in this amendment request. I. Relocate Upstream Diversion to Heil Avenue: To be determined later and not included in this amendment request. Amendment requests A, B, D, E, F,G, and H are described in detail in the attached Proposed Amendment Requests with corresponding schedule amendment numbering (i.e. Schedule A corresponds to Amendment Request A described above). ALTERNATIVES Do not approve the requested amendments and move forward with the schedule delays and project information deficiencies that will result. Additionally, move forward with no additional investigation of pump station capacity, corrosion, flow diversions, and diversion box design criteria. The reduced amount of information would carry the risk of potential change orders on this project or additional future District projects to address the issues being investigated at this time. CEQA FINDINGS An SEIR is currently being prepared and is expected to come before the Orange County Board of Directors for certification in approximately June, 2004. G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\11031ftem 13ftl-10.doc Revised: 06/04/03 Page 4 ATTACHMENTS 1. Budget Information Table 2. PSA Status Report 3. Summary of Proposed Fees DM:ba G:\ntglobal\Agenda Draft Reports\PDC\I-10 AR_PSA Amendment No 1_110603.doc G:\wp.dtalagenda\Board Agenda Reporls\2003 Board Agenda Repons\1103Ntem 13(f),I-10.doc Revised:06/04/03 Page 5 e v BUDGET INFORMATION TABLE Replacement of the Ellis Avenue Pump Station Contract No.1-10 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED PROJECTITASK AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED AUTHORIZATION TOTAL EXPENDITURE EXPENDED BUDGET BUDGET INCREASE BUDGET TO DATE REQUEST AUTHORIZATION TO DATE TO DATE('.) Project Development 30.000 S 30.000 S 30,000 S 30,000 S 30,000 0°0 Studies/Pa—Min 97,000 S 97.000 S 97.000 S 97,000 $ 97,000 0°< Design Consultant 1,800,000 $ 14800.000 $ 1.386.027 $ 301861027 S 3186,027 S 3AM027 09a Des' n Staff 290,000 $ 290.000 S 290.000 S 290,000 S 290.000 0°e Property Purchase S 500,000 $ 5D0.000 S 500.000 Construction Contract $ 18,848,000 S 18848.000 $ t8,848.000 S Construction Administration S 419,000 $ 419,000 1 419,000 $ Construction Inspection $ 526,000 $ 526.000 S 526.D00 Contlnoencv $ 4,590,000 $ 4.590.000 S n,386.027 S 30203.973 PROJECT TOTAL $ 27,100,000 $ 27.100.000 $ S 27.100.000 1 S 3.603,CJ S 3.603.027 Reimbursable Costs PROJECT NET I S 27.100,000 I S 27.100.000 1 S - S 27 100 000 11$ S 3.603,027 S 3.603.027 $ - - Professional Services Agreement Status Report Job No. 1-10 Total Project Budget: $33,837,000 Consultant: Malcolm Pirnie, Inc. Start Date of Project: December 5, 2002 Date Amendment Description Cost Accumulated Costs 9-25-2002 Original PSA Engineering & Construction Support Services $3,186,027 $3,186,027 Pending 1 Additional Engineering Services $400,055 $3,586,082 EDMS: 003753570 11/12/03 Revised 05/14/98 a Orange County Sanitation District Contract No.1-10 Replacement of the Ellis Avenue Pump Station Original Pro osaI Submitted May 20 2003 Schedule Description Hours Burden Overhead Profit Subtotal Direct Subs Total No. Labor Costs A Project Schedule Extension 921 55,786 $ 52,997 8,594 $117,377 $ 423 $ 18.273 $136.073 B Additional SARI/Newhope Evaluation 91 $ 51,718 $ 49,132 $ 7,967 $108,817 $ 983 $ 126,596 $236.396 C OCWD Water Line 66 $ 35,472 $ 33,698 $ 5,464 $ 74,634 $ 900 $ 18,000 $ 93.534 D Bushard Street Diversion Box Evaluation 647 $ 34,741 $ 33.004 $ 5.352 $ 73,097 $ 704 $ 53.503 $127.304 E Additional Pump Station Site Evaluation 69 $ 34.223 $ 32.512 $ 5.271 $ 72,006 $1.494 $ - $ 73,500 F Bushard/Millor Holder Corrosion Study 125 $ 8,035 $ 7,633 $ 1,238 $ 16,906 $ 94 $ 18,290 $ 35.290 G Pump Station Capacity Evaluation 366 $ 24,092 $ 22,888 $ 3,711 $ 50,691 $ 309 $ - $ 51,000 ota s ,662 Revised Proposal Submitted June 20,2003 Schedule Description Hours Burden Overhead Profit Subtotal Direct Subs Total No. Labor Costs A Project Schedule Extension 98 $ 67,357 $ 63.990 $10,377 $141.724 $1,176 $ 16.600 $159.500 B Additional SARI/Newhope Evaluation 1,559 $ 81,435 $ 77.363 $12.545 $171.343 $1,453 $ 87.204 $260,000 C OCWD Water Line $ $ $ $ $ $ $ D Bushard Street Diversion Box Evaluation 623 $ 33.501 $ 31,825 $ 5,161 $ 70,487 $ 713 $ 57,800 $129,000 E Additional Pump Station Site Evaluation 674 $ 33.255 31.592 $ 5,123 $ 69.970 $1,530 $ $ 71,500 F Bushard/Miller Holder Corrosion Stud 88 $ 5,763 $ 5.475 $ 888 $ 12126 $ 174 $ 25 200 $ 37,500 G PumpStation Ca ci Evaluation 3 21.442 $ 20 370 $ 3.304 $ 45.116 $ 384 $ 45.500 ata s Negotiated Amount based on August 12 2003 Tel hone Conversation Schedule Description Hours Burden Overhead Profit Subtotal Direct Subs Total No. I Labor I Costs A Project Schedule Extension 855 $ 61,492 $ 58,417 $ 9.473 $129.382 $1 018 $ 16,600 $147,000 B Additional SARI/Newhope Evaluation 50 $ 3,589 $ 3,409 $ 553 $ 7.551 $ 49 $ 25,000 $ 32,600 C OCWD Water Line 0 $ $ $ $ $ $ D Bushard Street Diversion Box Evaluation 136 $ 7,725 $ 7,339 $ 1,191 $ 16.255 $ $ $ 16,255 E Additional Pump Station Site Evaluation 62 $ 30,830 $ 29.289 $ 4,749 $ 64.868 $ 632 $ $ 65.500 F Bushard/Miller Holder Corrosion Study1 5,763 $ 5,475 $ 888 $ 12,126 $ 174 $ 25.200 $ 37.500 G Pump Station Capacity Evaluation 26 $ 18,409 $ 17,468 $ 2,836 $ 38.733 $ 267 $ 39.000 H Additional PumpStation Site Investigation 52 $ 30,175 $ 28 667 $ 4,649 $ 63,491 $ 284 $ 11,725 $ 75,500 Delete Wet Weather Flow Monitoring 0 (13,300) (13,3001 ota s Other Pending Changes Schedule Description Hours Burden Overhead Profit Subtotal I Direct Subs Total No. I I Labor I Costs Plant No.1 Diversion Trunk Tunnel Design ? ? Pump Station Cut-off Wall Design ? ? PDC COMMITTEE fleeting Date To Bd.of Dir. 11/06/03 11/19/03 AGENDA REPORT Item Number Item Number PDC03-88 13 Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Hardat Khublall, Engineer SUBJECT: WARNER AVENUE RELIEF SEWER, CONTRACT NO. 11-22 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 3 to the Professional Services Agreement with Tetra Tech, Inc. for the Warner Avenue Relief Sewer, Contract No. 11-22, providing for additional engineering services during construction, for an additional amount of S78,500, increasing the total amount not to exceed $440.979. SUMMARY • This project, located in the City of Huntington Beach, consists of improvements to relieve hydraulic deficiencies on two separate reaches of the existing Warner Avenue Relief Sewer and to relieve deficiencies in the overall sewer drainage basin tributary to that trunk sewer. The 1999 Strategic Plan Environmental Impact Report identified these two reaches of the Warner Avenue Sewer to be hydraulically deficient, and in need of replacement. • The Construction of this new sewer line along Warner Avenue has impacted the City of Huntington Beach (City) and its residents. Staff, supported by the Design Consultant, are working together with the City and the Contractor to resolve a variety of issues including alignment and Traffic Control changes. • This estimated amount of $78,500 includes additional Engineering Construction Support Services to provide shop drawing reviews, preparation of field design changes, attending meetings, and responding to Requests for Information (RFI). • The fees proposed for construction support services are estimates prepared by Tetra Tech, Inc., and District staff and are based on experience with similar projects of this size. All work performed and billed will be on an as requested basis by District staff to support the project. PRIOR COMMITTEE/BOARD ACTIONS 1. Approval of a budget increase by the Board of Directors on March 27, 2002 in the amount of $2,118,000. 2. Award of a Construction Contract to ARB, Inc. on May 28, 2002. 3. See attached Professional Services Agreement (PSA) Status Report. R,,,sed. 8'1098 Page 1 PROJECT/CONTRACT COST SUMMARY A Budget Authorization of $78,500 is requested from Phase 4 Construction Budget increasing the proposed total Authorization for Phase 4 Construction to $6,134,000 and the Consultant's PSA to $440,979. A budget reallocation authorization of $2,200 is also requested to be moved from contingency to Phase 2 Preliminary Design, increasing the proposed total authorization for Phase 2 Design to 54,200. Refer to the attached Budget Information Table and PSA Status Report. BUDGET IMPACT ® This Item has been budgeted. (Line item: Warner Avenue Relief Sewer, Section 8, page 40) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION The construction support services budget estimated by the Design Consultant in the amount of S22,000 was too low. The complex nature of this project has caused the Design Consultant to spend much more time than what was budgeted for initially. This estimated budget Amendment No. 3 of $78,500 is recommended to cover the Design Consultant's cost for the remainder of the Contract. ALTERNATIVES No alternatives are being presented. CEQA FINDINGS This project is included in the 1999 Strategic Plan Program Environmental Impact Report that was certified on October 27, 1999, and a Notice of Determination was filed on October 29, 1999. ATTACHMENTS 1 . Budget Information Table 2. PSA Status Report 3. Consultant's Letter HK:ba:jo:ba GiAntglobal\Agenda Draft Reports\PDC\11-22 AR Amendment 3.doc Revised: 811098 Page 2 BUDGET INFORMATION TABLE WARNER AVENUE RELIEF SEWER CONTRACT NO.11-22 ORIGIJEAL CURRENT PROPOSED PROPOSED FUtJDS THIS PROPOSED ESTIMATED PROJECT%PHASE AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED TO AUTHOR17ATIOU TOTAL EXPENDITURE BUDGET BUDGET DECREASE DECREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE ! Phase 1-Project Development S 10.200 S 50 000 $ 50.000 S 50.000 i 50.000 $ 48,718 Phase 2.Prelm—P S 10000. 2000 S 2= S 4200 S 2.000 S S 4.2W S 4.167 Phase 3-Dn n S 400 000 S 680.000 S 680.00c) $ 362,479 S 362,479 S 635.929 Phase 4-Consttucbon S 2.6969600 S 6.134.000 $ 6,134000 $ 6,055.500 S 79.500 $ 6,134.0W S 1.205,306 Phase 5•C---ng S 128 000 S 128 000 S 128.000 $ $ Phase 6•Close•Out S 37.000 $ 37.000 S I I$ S Phase 7•Contingemy S 929.500 $ 449.000 $ (2.2001 S 446.800 $ PROJECT TOTAL S 4.211300 S 7480.000 S - S 7480.0W 6.469.979 S 80.700 S 6.550.679 S 1,8"An —bursable Cost' PROJECT NLT 1$ 4,211.3W S 7480.000 S S 7480.000 1 S 6,469,979 1$ 80.700 S 6.550.879 S t.894.122 PSA/Contrect Des PSA S 282479 $ 362.479 S 78.500 $ 440.979 11 S 382479 1 S 78,500 S 440979 S 282480 C—t.c an Contract s 5.089.040 1 S 5242.040 1 S S 5242.040 11 S 5.242.=I S S 42.040 I S Professional Services Agreement Status Report Warner Avenue Relief Sewer Contract No.11-22 Total Project Budget: $7,480,000 Consultant: Tetra Tech, Inc. Start Date of Project: April 1,2000 Date Amendment Description Cost accumulated Costs 3/22/2000 Original PSA Design Warner Avenue Relief Sewer $224,800 $224 800 Incorporation of 2,700 LF of City sewer into 3/28/2001 No. 1 design,and structural design of pipeline $57,679 $282,479 transition structure 9/24/2003 1 No.2 lAdditionall Design Services 1 $80 000 1 $362 479 Pending No.3 JAdditionall Construction Support 1 $78 500 1 $440 979 a TETRA TECH, INC. Infrastructure Services Group September 29,2003 Mr.Hardat Khublall Project Manager Orange County Sanitation District 10844 Ellis Avenue(P.O.Box 8127) Fountain Valley,CA 92728-8127 Reference: Warner Avenue Relief Sewer,Contract No. 11-22 Additional Construction Support Services Dear Mr. Khublall: Tetra Tech, Inc. has been providing construction support services for the Warner Avenue Relief Sewer since May 2003. As of the date of this correspondence,we have fulfilled our responsibilities as contained within our original scope of work. The following correspondence summarizes our recommended budget to provide construction support services until the completion of the construction of the Warner Relief Sewer Project. However, it should be noted that it is impossible to estimate the amount of questions and support the District will need to complete the project. Conflicts, concerns and permitting issues may arise at anytime during the construction. The following recommended budget is only our best guess of the services that may be required. Original Scope of Services The following is a summary of our existing Construction Services scope of work: Sub-task 4.1 Pre-Construction Meeting: Attend a pre-construction conference scheduled by the District. Tetra Tech attended the Pre- Construction Conference held on July 10, 2003. Sub-task 4.2 Submittals: Review shop and work drawings submitted by the Contractor. Assume 20 submittals.As of the date of this correspondence, we have reviewed a total of 18 shop drawing submittals with several requiring more than two re-submittals. Sub-task 4.3 Consultation: Furnish consultation and advise to District staff including responding to requests for information and requests for clarifications. (Assume 50 hours of project management time). As of the date of this correspondence, Tetra Tech has responded to 15 RFls and have prepared the following memorandums: two memos summarizing bypass capacities; summary of field conditions at siphon bore pit and along Warner Avenue; sequence of pouring of encasement of the triple barrel; minimum cover at Graham; clearance of siphon casing and reduction in size of casing, existing 16241 Laguna Canyon Road,Suite 200,Irvine.CA 92618 Tel 949.727.7099 Fax 949.727.7097 www.tetratech.com 0 TETRA TECH, INC. Infrastructure Services Group Mr. Hardat Khublall September 29,2003 Page 2 inverts and slopes as part of the spill prevention submittal; and several memos regarding the requested modifications to the siphon design. In addition, Tetra Tech has revised the downstream side of the siphon to flatten the slope including the relocation of the City's water main and extension of the existing 8-inch sewer lateral at the proposed receiving pit. These changes required three new sheets and modification to an existing detail. These plans were processed through the City of Huntington Beach for approval. Sub-task 4.4 Meetings: Attend meeting to resolve construction issues as requested by District staff. (Assume two monthly meetings at 2 hours per meeting throughout construction duration). We assumed ten meetings within our original proposal. As of the date of this correspondence, Tetra Tech has attended 13 meetings with the District and/or City of Huntington Beach. Sub-task 4.5 Record Drawings: Prepare record drawings when construction work has been completed and accepted by the District. Tetra Tech has not performed this work. Sub-task 4.6 Change Orders: Assist District with Change Orders as needed (assume 20 hours project management time). Tetra Tech has assisted the District in the preparation of the change order drawings for the modifications of the siphon and water main relocation work,providing opinions as to whether the change order was warranted, and assistance with cost estimates. Recommended Budget The following correspondence summarizes our recommended budget to provide construction support services until the completion of the construction of the Warner Relief Sewer Project. Item No. 1: Revised Alignment from Greentree Lane to Bolsa Chica Street During the 60% design review process, the City of Huntington Beach requested the proposed Warner Avenue Relief Sewer be located between the City's existing 8-inch water main and existing 8-inch sewer between Greentree Lane and Bolsa Chica Street. Based on pothole data, the existing 8-inch water main wanders in its horizontal alignment within this section of the project. Therefore, we will no longer be able to maintain a 4-foot OD to OD clearance between the proposed sewer and existing water main. The City has provided conceptual approval to relocate the Warner Avenue Relief Sewer to about 24 feet off the curb face. Relocating the sewer will require the following plan modifications: • Plan and profile Sheets P5 through P7 and Sheet P13. • Detail 3 on Sheet D1, Details 1, 2, 3, 4, 5 and 6 on Sheet D3, profiles 2, 3, 4, 5 and 6 on Sheet D10, and profile 1 on Sheet D11. 4 TETRA TECH,INC. Infrastructure Services Group Mr.Hardat Khublall September 29, 2003 Page 3 • Paving plan on Sheet P 15 and P 16. • Paving Section B on Sheet D9. • Six(6)Sheets of Traffic Control Plans Coordination with City of Huntington Beach for approval. • Revised quantities and survey data. Item No. 2: Water Main Relocation Plan at Los Patos Avenue and Bolsa Chica Street Based on field utility markings, there is a conflict with the proposed sewer and the existing water main at the intersection of Los Patos Avenue and Bolsa Chica Street. It is our understanding that the City of Huntington Beach will approve the relocation of the water main. Tetra Tech will prepare a water main relocation plan for approval by the City. Item No. 3: Additional Submittals We are assuming that we will be required to review an additional ten (10) shop/work drawings submittals. We have assumed that each submittal will require a second review. Item No. 4: Additional Consultation We are assuming that we will be required to respond to an additional 15 RFIs. In addition, we are assuming a minimum of two hours per week to provide consultation and advice to the District staff for the remaining duration of the construction contract(another 50 weeks). Item No. S: Additional Meetings We are assuming two meetings per month at two hours per meeting for the duration of the construction contract(additional 25 meetings). Item No. 6. Record Drawings We will prepare record drawings as required per our original scope of services when construction work has been completed and accepted by the District. Due to the quantity of changes,the effort to prepare the record drawings will be substantially more than originally estimated. Item No. 7: Change Orders We are assuming the District will require our assistance on at least an additional eight (8) change order requests. Included within our work will be the preparation of any change order drawings, providing opinions as to whether the change order is warranted and assistance with cost estimates. Summary It is impossible to estimate the amount of questions and support the District will need to complete the project. Conflicts, concerns and permitting issues may arise at anytime during the construction. However, the following recommended budget is our best guess of the services that may be required to provide construction support services until the completion of the construction of the Warner Relief Sewer Project. TETRATECH, INC. Infrastructure Services Group Mr.Hardat Khublall September 29, 2003 Page 4 Consulting Services Including: Burdened labor: $25,084 Overhead at 170%: $42,643 Profit(includes overhead and burdened labor)at 9.8%: $ 6.637 Subtotal—Consulting Services including burdened labor,overhead and profit,not-to-exceed: $74,364 Direct Costs, not-to-exceed: 4,136 Total,not-to-exceed: $78,500 We have included on the following page a detailed staff hourly breakdown of the additional work. As always,please do not hesitate to call if you have any questions or desire additional information. Sinc ly, T66m Epperson, P.E. Project Manager TLE/cg J A3663\0002U-021 tle.doc(l 00) Attachment c Chuck Winsor,OCSD ORANGE COUNTY SANITATION DISTRICT Warner Avenue Relief Server Additional Construction Support Services rr: I I Item 1: Revised Alignment from Greentree Lane to Balsa Chica Street Plan&Profile Sheets P5 through P7&P13 I1 6 1 16 1 30 6 1 62 Revise Details Sheet D1 D3&D10 21 8 12 24 1 46 Revise aving Plan(Sheet P15&P161 2 6 1 1 8 Revise Pa ing Section B on Sheet 09 # :#2 2 4 Six 61 Traffic Control Sheets 2 24 40 66 Coordination with City of Huntin ton Beach 6 4 4 i 1 3 27 Revised Ouantities and Surv,�v Data 1 4 1 9 Subtotal 12 I z4 60 1 110 2 1 14 1 222 I Item 2:Water Main Relocation Plan at Los Patos and Bolsa Chica Prepare Water Main Relocation Plan 2 1 a 1 4 1 8 1 1 18 Coordination with City of Huntington Beach 2 2 2 4 1 4 15 Revised Ouantifies and Survey Data 2 2 1 5 Subtotal 4 1 6 1 8 1 14 I 21 4 38 I Item 3:Additional Submittals Additional Submittals fasquriprl 1f11 20 20 48 Subtotal a 20 4 20 : 48 Item 4:Additional Consultation RP and to RFI's additional 15 10 6 16 Consultation/Answer Questi ns 12 hours/wkl 66 3a 100 ubtotall 76 40 1 116 I Item 5:Additional Meetings Atlend additional meetings(nssumerl 25 40 10 50 Subtotal 40 10 1 50 I Item 6: Record Drawings PrPoare Rncord Dray.ings a 4 60 14 82 Subtotal a 4 60 14 -82 Item 7: Chan a Orders Assist with Change Orders additional 8 32 16 8 1 16 8 8 88 han P or.-r f)laetinoc assume 161 32 4 36 Subtotall 64 16 6 16 12 8 12.1 Totals 000 120 80 200 20 60 680 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/06/03 11 19/03 AGENDA REPORT Item Number Item Number PDC03-89 13(h Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Umesh Murthy, Engineer SUBJECT: EFFLUENT PUMP STATION ANNEX, JOB NO. J-77 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 5 to the Professional Services Agreement with Black & Veatch Corporation for additional construction support services for Effluent Pump Station Annex, Job No. J-77, for an additional amount of $1 ,776,417, increasing the total amount not to exceed to $6,164,240. SUMMARY • The Effluent Pump Station Annex (ESPA), Job No. J-77, will replace the existing Foster Booster Pump Station with a new pumping facility that is capable of providing adequate backup capacity to the existing Ocean Outfall Booster Station (OOBS) during excess flow events and routine maintenance. EPSA will also accommodate the pumping of secondary treated water exclusively through the 78-Inch outfall during excess flow events. • Black & Veatch Corporation (B&V) prepared the plans and specifications for this project and the construction contract was awarded to J.F. Shea Construction Inc. on September 24, 2003 for S44,735,518. Construction is expected to begin in November 2003 and is expected to last in excess of three years. • Construction support services from B&V are necessary during the construction phase. This work includes review of shop drawings, requests for information, preparation of record drawings, and assistance in commissioning and initial operation of the new facilities. • The fees proposed for construction support services are estimates prepared by B&V and District staff and are based on experience with other projects of this size. All work performed and billed will be on an as requested basis by District staff to support the project. PRIOR COMMITTEE/BOARD ACTIONS 1 . Award of the Construction Contract to J.F. Shea Corporation, September 2003. 2. Please see the attached Professional Service Agreement (PSA) Status Report. G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 13(h).J--n.doc Revised: 06/04/03 Page 1 PROJECT/CONTRACT COST SUMMARY r Authorization of an additional $1,776,417 is being requested to B&V's Professional Services Agreement (PSA) as indicated in the attached Budget Information Table. BUDGETIMPACT ® This item has been budgeted. (Line item: Section 8 - Page 73) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION The proposed Amendment No. 5 is for providing additional construction support services, not included in the PSA or Amendment Nos. 1, 2, 3 and 4 and includes the following: 1. Preparation of conformed drawings 2. Review of additional shop drawings. 3. Preparation of responses to request for information (RFI) from contractor. 4. Attendance at progress meetings and site visits. 5. Preparation of record drawings. 6. Start up and initial operation of facilities. The PSA and Amendment Nos. 1 through 4 include S475,478 for construction support services on this project. Proposed Amendment No. 5 of S1 ,776,417 will increase the total cost for construction support services to S2,251 ,895 (5.031% of the construction contract). The attached proposal letter from B&V provides details for the construction support services. ALTERNATIVES No alternatives are proposed. CEQA FINDINGS The rehabilitation of the Foster Booster Pump Station was included in the 1999 Strategic Plan Environmental Impact Report (EIR). The EIR was certified on October 27, 1999, and a Notice of Determination was filed on October 29,1999. A Supplemental Environmental Impact Report (SEIR) was completed for update of the Program Environmental Impact Report to reflect replacement of the Foster Booster Pump Station rather than the rehabilitation indicated in the 1999 Strategic Plan Environmental Impact Report. The SEIR was approved by the Board in December of 2002. ATTACHMENTS 1 . Budget Information Table 2. Professional Services Agreement Status Report 3. Proposal letter and fee Wwp.dWagenda`.Board Agenda Reports\2003 Board Agenda ReportsO 1011tem 13(h).J•ii.doe Revised: 06/04/03 Page 2 BUDGET INFORMATION TABLE Effluent Pump Station Annex JOB NO.J-77 ORIGINALL CURRENT PROPOSED PROPOSED FUNDS : THIS : PROPOSED ESTIMATED DGET PROJECTIPHASE AUTHORIZED PROJECT B INCREASE REVISED AUTHORREDTO AUTHORIZATION TOTAL EXPENDRURE BUDGET BUDGET S CREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE Phase 1-Project Development S 21.000 S 21.000 S 21,000 S 2.100 S 2,100 S 2.058 Phase 2-Preliminary Desi n S 1.258 000 S 60.045 S 60,045 $ 60,045 $ - S 60,045 $ 60.045 Phase 3-Design $ 3.501.000 $ 4,387,823 S 4.387 823 $ 4.387,823 $ 4.387,823 $ 4.280.918 Phase 4-Construction S 43,745.000 S 51.791,650 S 51.791.650 S 48.139.649 $ 48.139,649 $ 32.000 Phase 5.Commissioning S 376,000 $ 376,000 $ 376,000 S 376,000 $ 376.000 S Phase 6-Close-Out $ 94.000 S 94.000 S 94,000 S 94.000 S 94.000 $ Phase 7-Contingency S 1 762 000 S 1.762.000 S 1.762 000 S PROJECT TOTAL S 50,757,000 S 58,492.518 $ - S 58,492.518 $ 53.059.617 $ - $ 53.059,617 S 4,375,021 Reimbursable Costs PROJECT NET 1$ 50.757,000 1 S 56.492.518 $ $ 58,492.518 11 S 53,059.617 1 $ S 53,059,617 1$ 4,375.021 PSA/Contract Desi n/Const.Support PSA S 2.208.810 $ 6,164.240 1 S - S 6.164.240 11 S 4,387.823 1 S 1.776 417 S 6.164,240 1 S 3.633.158 Construction Contract $ 44.735.518 1$ 44.735.518 1$ - S 44,735,518 1 S 44 735,518 1$ - S 44.735,518 003756361 Professional Services Agreement Status Report Effluent Pump Station Annex Job No. J-77 Total Project Budget: $50,757,000 Consultant: Black & Veatch Engineers Start Date of Project: May 25, 2000 Date Addendum Description Cost Accumulated Costs 5/25/00 Original Effluent Pump Station Annex, Job No. J-77 $2,208,810 $2,208,810 PSA 8/27/01 Addendum Provide Additional Preliminary and Final Design $1,273,113 $3,481,923 #1 Work, & Addition of Emergency Backup Power and Structure. 5/22/02 Addendum Provide Additional Scope Items to include I&C $229,600 $3,711,523 #2 Upgrade, Utility Location, Demolition of FPS, 42" Siphon, 96" BFV Replacement, and North Entry Gate Modification. 11/20/02 Addendum Provide Additional Scope Items to include $304,000 $4,015,523 #3 Redesign of SPF; I&C Upgrades; Fire Protection; Additional Landscaping; Security, Telephone, and PDA Sy stems; and, Specifications Upgrades. 6/25/03 Addendum Upgrade to Revision E Standard for I&C, $372,300 $4,387,823 #4 Coordination with Parallel Projects, and Additional Items Due to DS#3 Review Comments Pending Addendum Provide Construction Support Services Through $ $ #5 Remainder of Project RW:sa EDMS 003742122 11/12/03 Revised 05/14/98 a BLACK & VEATCH 800 Wilshire Blvd. Black& Veatch Corporation Suite 600 Los Angeles,California 90017 USA Tel:)213)312.3300 Fax:)213)312.3399 Mr.Umesh Murthy B&V Project 98071 Orange County Sanitation District B&V File B.1.0 10844 Ellis Avenue October 3, 2003 Fountain Valley,CA 92708-7018 Subject: Job No.J-77,Contract Addendum No.5—Revision B Dear Mr.Murthy: This memorandum details the proposed scope of services and fee estimate for the construction phase services associated with Project J-77,Effluent Pump Station Annex(EPSA).Our original contract and the associated amendments, which responded to the scope of work contained in the original Request for Proposals, included a total of$475,478 for construction phase services. Because of the size, scope, and schedule of this project, this amount will be inadequate for Black & Veatch to provide the services the District currently requires of its consultants during construction. Additionally, very little of this amount was authorized for the team's subconsultants, namely SPEC Services, who will assist with the electrical and instrumentation and control (I&C) disciplines, and Ninyo & Moore, the project's geotechnical engineer. The following scope of work and fee estimate was developed based on our understanding of your current requirements for consultants during construction phase services. Please contact me if the services detailed in the following scope of work are not necessary,or if additional services are required. Conformed Drawings The as-bid contract documents will be "conformed" to reflect the wdif cations made by addenda. The contract drawings will be revised in accordance with the District policy outlined in the Design Guidelines and the appropriate revision information will be updated in the title block of'die drawing. The specifications will be modified in "track-changes" mode to document the changes trade during the bid addenda. One set of camera ready full-size drawings printed on bond paper and one set of camera ready specifications will be provided to the District. A compact disc of native format electronic files, e.g. AutoCAD drawing files for contract drawings,will also be provided. The total amount requested for this task is $104,923 ($76,823 for Black & Veatch and $28,100 for Spec Services).These services were not accounted for in the existing amended contract. Pre-Construction Conference Black & Veatch will attend the pre-construction conference and walkthrough with the District. Black & Veatch assumes that five members of the design team (two from Black & Veatch, two from SPEC Services, and one from Ninyo & Moore) will attend the meeting for the entire day to assist the District and respond to Contractor questions. The project team members in attendance will also review and comment on the District-prepared meeting minutes. building a World of difference- 0 Orange County Sanitation District October 3,2003 Mr.Umesh Murthy Page 2 The total amount requested for this task is $5,225 ($2,825 for Black & Veatch, $1,600 for Spec Services, and$800 for Ninyo &Moore). The existing amended contract amount for these services is $3,283 ($923 in the Original Contract and $2,360 in Addendum No. 1). The resulting request for this task is for an additional $1,942 ($458 credit from Black & Veatch to the District, $1,600 for Spec Services, and$800 for Ninyo&Moore). Shop Drawing Submittals In accordance with Section 1.2.11.2 of the Design Guidelines (Revision D), Black & Veatch expects all submittals to be routed through the District. These submittals will likely include manufacturer product and equipment information, vendor and laboratory reports, operations and maintenance manuals, certifications, and material tests and inspections to verify compliance with the contract documents. In addition there are several I&C submittals that the Contractor will be required to submit, e.g. record Loop Drawings. However, because the District is conducting the programming for this project, it is assumed that the databases, i.e. the EID and SAT, will be updated and/or verified by the District. SPEC Services will perform the final coordination analysis for the Electrical Transient Analyzer Program(ETAP). Black& Veatch estimates approximately 500 submittals for a project of this scope and magnitude. Black & Veatch will submit one electronic and hard copy of its submittal comments to the District and in accordance with the Design Guidelines Revision D,and will review standard equipment submittals within 14 days and complex submittals within 20 days. Each submittal is estimated to require four and a half hours of review by the team's engineers and management. For the purposes of this addendum, it is assumed that SPEC Services will provide engineering services to review 175 shop drawing submittals and Ninyo&Moore will review 12 shop drawing submittals. The total amount requested for this task is $362,231 ($264,731 for Black & Veatch, $91,500 for Spec Services, and $6,000 for Ninyo & Moore). The existing amended contract amount for these services is $154,815(In the original contract$1035 was approved for"Lab Reports and Miscellaneous Documents", $52,720 was approved for "O&M Manuals", and $3740 was approved for "Submittals". In the contract addendum no. 1, $10,600 was approved for "Lab Reports and Miscellaneous Documents", $40,040 was approved for "O&M Manuals", and $46,680 (with $8,000 for SPEC Service) was approved for "Submittals"). The resulting request for this task is $207,416 ($117,916 for Black & Veatch, $83,500 for Spec Services,and$6,000 for Ninyo&Moore). Site Inspections Section 1.2.11.2 of the Design Guidelines Revision D indicates that, "(the) Consultant shall also assist OCSD in...conducting special on-site inspections at OCSD request." Specialized site inspections are also expected periodically for the inspection of the stone column installation, observation of the vibration monitoring and noise mitigation programs, and the California Building Code (CBC) "Structural Observation"services. As indicated in our correspondence dated January 22, 2003, Black & Veatch assumes that all CBC "Special Inspection" services will be provided by the District. Black & Veatch estimates that"Structural Observation" services and the subsequent reports will be required for 8 months. It is assumed that these services will be provided once a week for the eight month period.Each of the 32 inspections and reports will require and estimated eight hours in the field and four hours in the office to prepare the associated report.These services will be preformed by a qualified structural engineer. tl Orange County Sanitation District October 3,2003 Mr.Umesh Murthy Page 3 Similarly, special inspection and testing services will also be provided during the stone column and injection grouting installation. Ninyo & Moore will assist Black & Veatch in providing these inspection and testing services. In addition, they will assist Black & Veatch in the evaluation of the vibration monitoring and noise mitigation programs,as required.The field observation and testing services assumes that the stone column and compaction grouting will be performed in 36 days during normal 8 hour work days. For the purposes of this proposal Ninyo &Moore will provide a representative full-time during the stone column and compaction grouting operations. For the purposes of this proposal, Black & Veatch assumes the noise and vibration programs will require 2 hours per week. Additionally, it is assumed that additional site inspections, as required by the District and as detailed in the aforementioned Design Guidelines,will be provided four hours per week for the three and one-half year construction period. The total amount requested for this task is $309,043 ($265,407 for Black & Veatch and $43,636 for Ninyo&Moore).These services were not accounted for in the existing amended contract. Requests-For-Information and Change Orders For a project of this size and scope, Black & Veatch estimates that the Contractor will submit 400 Requests for Information (RFIs) resulting in 40 change orders. Each RFI is estimated to require four hours of review by the team's engineers and management. In addition, each change order is estimated to require eight hours of review and development by the team's engineers and management. For the purposes of this addendum, it is assumed that SPEC Services will provide engineering services to review 150 RFIs and 20 change orders and Ninyo&Moore will review 5 RFIs and prepare 1 change order. The total amount requested for this task is $269,444 ($175,144 for Black & Veatch, $91,000 for Spec Services, and $3,300 for Ninyo & Moore). The existing amended contract amount for these services is $53,760 (In the original contract $15,600 was approved for RF1s. In the contract addendum no. 1, $38,160 was approved for RFIs (with$13,000 for SPEC Services).).The resulting request for this task is $215,684($134,384 for Black&Veatch, $78,000 for SPEC Services,and$3,300 for Ninyo&Moore). Construction Progress Meeting General Requirement 19 of the Contract Documents requires the Contractor to meet regularly with the District. Included in these meetings, is a weekly construction progress meeting. Black &Veatch assumes that the Contractor and the District will conduct this weekly meeting throughout the estimated three and one-half year construction period,and will attend at the request of the District Project Manager. Black& Veatch assumes that it will provide one representatives at each of the meetings attended and will provide a second representative for some of those meetings. Black & Veatch also assumes that SPEC Services will provide a representative at each meeting requested by the District Project Manager and Ninyo & Moore will provide a representative at 15 of these meetings. In addition, the aforementioned General Requirements clause includes monthly submittal meetings and quarterly safety meetings.Black&Veatch assumes that two representatives will also attend the estimated 42 monthly submittal meetings and 14 quarterly safety meetings.Four hours is assumed for each meeting. The total amount requested for this task is $462,420 ($341,220 for Black & Veatch, $112,200 for Spec Services, and $9,000 for Ninyo & Moore). The existing amended contract amount for these services is $62,670 ($11,790 in the Original Contract and $50,880 in Addendum No. 1). The resulting request for this task is $399,750 ($278,550 for Black &Veatch, $112,200 for SPEC Services, and $9,000 for Ninyo &Moore). 0 Orange County Sanitation District October 3,2003 Mr.Umesh Murthy Page 4 Construction Progress Inspections and Reports Section 1.2.11.2 indicates that, "At the 25, 50, 75, and 100 percent completion points of construction, the Consultant shall review the construction change orders and inspect the marked-up sets of drawings maintained by the Contractor and inspected by OCSD staff. Based on the findings, the Consultant shall prepare a written report on the completeness of the marked up drawings." If the District is interested in these services, they can be provided as supplemental services. Additionally, if the District is interested in these services consideration should be given to conducting the progress inspections at the at the end of each phase of construction. Startup Assistance and Training Section 1.2.11.2 of the Design Guidelines indicates that, "A document containing start-up requirements, procedures and schedule shall be prepared and submitted to OCSD for review and comment. All comments shall be incorporated in the start-up document. A meeting shall be held to review the start-up procedures and schedule and to coordinate activities. The Consultant shall be available and offer advice on the start-up procedures, operation of the equipment, troubleshooting, and computer operations, when a manufacturer's representative is on-site to assist in the start-up of major equipment." The District's existing O&M manual will be revised to incorporate the primary equipment components which include the EPSA pumps,motors,and variable frequency drives,as well as the standby diesel generators.Because the primary facilities will be installed at the end of Stage 1 construction, Black&Veatch assumes that the O&M manual revisions and startup assistance and training will only need to be provided prior to the startup of the Stage I facilities. Additional training and services can also be provided as supplemental services during later stages of the project, if required. The startup and operations document referenced in the Design Guidelines will also provide the basis for the O&M training classes.The document will include: • Basis of design criteria and description of the control systems • Narrative description of the function of each system and the interrelationship between systems • Operating parameters and procedures such as manual, remote, automatic operations, start-up and shutdown, and normal and abnormal operating procedures • Process flow diagrams with equipment numbers and instrument tag names • Review of general maintenance and troubleshooting procedures (equipment vendors will provide the detailed maintenance and troubleshooting requirements as part of their services) This document, along with the proposed revision to the District's O&M manual, will be developed and reviewed by the District prior to distribution to the District's O&M staff. As indicated in the Design Guidelines, Black & Veatch team members will attend the manufacturer's training services for the primary equipment components and will provide comprehensive startup training for the four O&M shifts in five separate four hour sessions. Black & Veatch will utilize the aforementioned O&M manual revisions and startup document as basis for the training classes. The total amount requested for this task is $300,376 ($200,376 for Black & Veatch and $100,000 for Spec Services). The existing amended contract amount for these services is $47,330 (In the original contract $8550 was approved for "Startup Assistance and Training", $860 was approved for "O&M Manuals and Training", and$12,200 was approved for"Fraining Services". In the contract addendum no. 1, $19,120 was approved for "Startup Assistance and Training" (with $10,000 for SPEC Services) and $6,600 was approved for "Training Services"). The resulting request for this task is $253,046 ($163,046 for Black&Veatch and$90,000 for SPEC Services). 4 Orange County Sanitation District October 3,2003 Mr.Umesh Murthy Page 5 Record Drawing Creation Record contract drawings will be created to depict the "as-built" conditions at the end of the project. Section 1.2.11.2 indicates that, 'The Consultant shall be responsible for converting the Contractor- generated drawings to the OCSD-required electronic formats. The Consultant shall also identify errors and omissions and shall incorporate their corrections into the respective shop drawings and construction drawings..." Further, the guidelines indicate that the Consultant shall "verify (that) the Contractor generated drawings...and other deviations from the original work are correctly reflected in the...Record Drawings..." Because Black & Veatch will not be providing detailed management and oversight of the Contractor and inspection of the work in the field, the aforementioned record drawing preparation and verification process will be based largely on the information supplied to Black& Veatch by the District. The level of accuracy and completeness from this process is in line with the District's Design Guidelines which go on to state, "Since OCSD will carry out the inspection of the project, some of the above modifications to the Drawings will/may be based upon information supplied to the Consultant by OCSD staff." As indicated in our conversation on June 3,2003, the record drawings will be not be sealed by a Professional Engineer as indicated in the Design Guidelines. Instead,the record drawings will be stamped as follows, "This drawing was originally approved for construction by (name) on (date) and sealed by (name) A licensed Professional Engineer in the State of California (license number)". One hard copy and one electronic copy of the final record drawings will be provided to the District. The drawings will be printed full-size on mylar media and the electronic files will be provided in the native file format, e.g. AutoCAD. In order to provide these services,Black&Veatch estimates that each drawing (including loop drawings) will require four hours of review and development by the team's engineers and management and an additional four hours by the team's drafters. Similar to other recent projects, it is assumed that the District will convert the project files into the District standard baseline files. The total amount requested for this-- task is $438,233 ($191,533 for Black & Veatch and $246,700 for Spec Services). The existing amended contract amount for these services is $153,620 (In the original contract $11,140 was approved to review as-builts and $61,l 20 was approved to prepare record drawings.. In the contract addendum no. 1, $13,000 was approved to review as-builts and$68,360 was approved to prepare record drawing (with $27,000 for SPEC Services). The resulting request for this task is $284,613 ($64,913 for Black & Veatch and $219,700 for SPEC Services). Contract Closeout Black & Veatch can assist the District in closing out the construction contract including developing the final punchlist, negotiating claims, etc. If the District is interested in these services they can be provided as supplemental services. Summary The total fee estimate for the aforementioned scope of services is $2,232,895. As previously mentioned, $475,478 was previously approved for construction management services. The resulting request for the construction management services detailed in the aforementioned scope of work is $1,757,417. A breakdown of the total fee follows.The fees are based on overhead, burden, and profit rates established in the contract. A Orange County Sanitation District October 3,2003 Mr.Umesh Murthy Page 6 Consulting Services for Black& Veatch,including: • burdened labor at 44% $446,357 • direct expenses $165,278 • overhead at 138% $427,758 • profit at 5%(includes overhead and burdened labor) $61,188 Subtotal—Consulting Services, including burdened labor, $1,100,581 overhead,and profit, not to exceed Subconsultant Services for SPEC Services,including: • burdened labor at 40% $407,659 • overhead at 58% $168,887 • profit at 6.33%(includes overhead and burdened labor) $36,553 Subtotal—Subconsulting Services, including burdened labor, $613,100 overhead,and profit,not to exceed Subconsultant Services for Ninyo& Moore: Subtotal—Subconsulting Services,including burdened labor, $62,736 overhead,and profit,not to exceed TOTAL,not to exceed $1,776,417 This information is presented contractually as follows: Labor Category Current Contract Amount As Amended Agreement Including Amended By Addendum No. 4 Addendum No.5 Engineering Services (direct labor at hourly rates plus overhead at $ 2,437,373 $3,311,488 138%), Not to Exceed Subconsultant Fees and Costs, Not $1,467,703 $2,143,539 to Exceed Profit $ 170,616 $231,804 Direct Costs,Not to Exceed $ 312,131 $477,409 Total, Not to Exceed $4,387,823 $6,164,240 Orange County Sanitation District October 3,2003 Mr.Umesh Murthy Page 7 Black & Veatch has truly enjoyed working with the District throughout the design phase of the project and looks forward to continuing to provide our services during construction. Black& Veatch can provide a variety of construction management and inspection services not included in this scope of work, including continuous on-site inspection, laboratory testing, etc. If services detailed in the following scope of work are not necessary, or if additional services are required, please do not hesitate to contact me to discuss the services and associated fees. If you have any questions or comments please feel free to contact me at 213-312-3300. Very truly yours, BLACK&VEATCH CORPORATION James H.Clark,PE Vice President Project Manager OCSD J-77 EPSA Addendum No.5 Fee Estimate-Revision B Staff Hours and Fee-Black&Vetatrh Promew Hourly Previous Total Contract Project Project Design Lead Design Design Subtotal Additional Description Manager Engineer Manager Engineer Engineer Operation CAD Clerical Hours Labor Costs SPEC Services Ninyo&Moore Computer DirectsTotal CM Fee Contracts Addendum 15 spmwisiand Addeds Fee Estimated 6"Role S 270 $ 196 $ 135 $ 150 $ 96 $ 135 S 90 S 75 1 Holm Fee Hours Fee $9.00 Ccnfomned Drawl s 12 61 57 57 170 170 40 566 S 65,294 281 $ 28 100 f 5,094 S 6,435 S 104 923 S 104 923 Pre-Constructon Conference 8 a 16 S Z568 16 S 1,600 8 S 800 S 144 S 113 S 5,225 S 3,283 S 1.942 Submittals 78 78 313 313 626 500 1,909 S 222,483 915 S 91,300 60 S 6,000 S 17.177 S 23072 S 36 1 S 154.915 S 207.416 special Site inapaction,s 83 83 114 94 374 748 S 103 190 S 729 1$ 3.590 S 113 508 S 113.508 Structural Observation 352 32 394 s 53 S 3.456 S 2.064 S 60,720 S 60.720 Geotechn'icaOStaneColumns 240 240 S 32,400 415 S 41,508 S 2,160 S 1,090 S 77,148 S 77.149 ration/Noisa Monfloring Program 374 374 $ 50.490 21 S 2,128' S 3,366 S 1.693 S 57,667 S 57.667 RFISIChange Orders 71 71 142 142 708 250 1,382 S 159222 910 S 91,000 33 S 3,300 S 12,437 S 1,496 S 269A44 S 53.760 f 215.684 Consimcuon Progress Meelln s 393 393 972 1,757 S 330.200 1122 $ 1=00 90 S 9,000 S 15,813 S 13,207 S 462,420 $ 62,670 S 399.750 Startup Assistance and Training 100 100 160 160 160 5610 1.240 S 182,160 1000 S 100 ow S 11,160 $ 7,056 f 300.376 $ 47,330 S 253.046 Record Drawing Creation 85 85 85 85 340 1 680 170 1,530 S 169,375 2467 S 246,700 S 13.770 $ 8388 S 439.233 IS 153.620 S 294.613 Total hours 921 979 2,464 1,202 2,378 560 850 992 10.145 6711 627 Total Fees S 221.783 S 163.324 S 332,685 S 180,250 S 228 240 S 75,600 S 76,300 S 74,4110 f 1,35 781 f 671 100 f 6 736 f 91,305 f 73,973 S 1,893 S 475,478 S 1.776,417 Black&Veatch Addendum No.5 Total S 1,100,581 Spec Services Addendum No.5 Total S 613,100 Nioyo&Moore Addendum No.5 Total S 62,736 Black&Veatch Total CM Fee S 1,518,0S9 _ Spec Services Total CM Fee S 671,100 Mayo&Moore Total CM Fee S 62,736 Total CM As A Percent Of Fstimated S44.7M Construction Cori 5.03% Addendum No.5 As A Percent OrFstimated S44.7M Contraction Coat 3.97% The FAHR minutes of the meeting held November 12 , 2003 were not available for this mailing . These minutes will be distributed at the November 19 , 2003 Board of Directors meeting . Once the minutes are finalized , they will also be available on the District's website (www. ocsd . com ) . FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAHR03-87 14 b Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael White, Controller SUBJECT: TREASURER'S REPORT FOR THE MONTH OF OCTOBER 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of October 2003. SUMMARY Pacific Investment Management Co. (PIMCO), serves as the District's professional external money manager, and Mellon Trust serves as the District's third-party custodian bank for the investment program. Some funds are also deposited in the State of California Local Agency Investment Fund for liquidity. The District's Investment Policy, adopted by the Board, includes reporting requirements as listed down the left most column of the attached PIMCO Monthly Report for the "Liquid Operating Monies" and for the "Long-Term Operating Monies" portfolios. The District's external money manager is operating in compliance with the requirements of the Investment Policy. The portfolio contains no reverse repurchase agreements. As shown on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for the Long-Term Operating Monies, there is a investment policy compliance exception pertaining to the holding of two securities within PIMCO's Long-Term Operating Monies Portfolio that had an acceptable rating at the time of purchase but has since fallen below the minimum rating allowed by the investment policy. The District's investment policy requires a minimum rating of A3 by Moody's or A- by S&P, with at least a BBB rating in the event of a split rating, at the time of purchase. The first of these rating exceptions pertains to the holding of a United Airlines (UAL) Asset Backed Security with a par value of $1.6 million, representing 0.4 percent of the portfolio holdings, whose rating from Moody's has fallen several times, from A3 to BA1, then to BA3, B3, B, and finally to CA. Likewise, the rating from Standard & Poor's has also fallen several times, first from A- to BBB, then to BB, then to B+, B-, and finally to CCC+. Although these ratings are less than what is required at the time of purchase, PIMCO believes, based on the financial strength of UAL and the underlying collateral of the security, that the District would suffer an unwarranted loss if the security was sold at this time. The second ratings exception pertains to the holding of a $5 million par of the Philip Morris-Altria corporate bond with an April 2004 maturity, representing 1.3 percent of the portfolio holdings, whose rating with Moody's has fallen from A2 to Baal and then to C Tocurnents and Settings\pope\Local Settings\Temporary Internet Fi1es\0LKBF\I1em 14(b).TREASRPT2.doc Page 1 Baa2, and with S&P from A- to BBB. PIMCO believes based on the underlying assets of the parent company, that the District would again suffer an unwarranted loss if the security was sold at this time. The District's investment policy does not require any action because of"credit watch" notices or the decline in credit standing. However, PIMCO will continue to monitor the credit for these two securities very closely. Historical cost and current market values are shown as estimated by both PIMCO and Mellon Trust. The District's portfolios are priced to market ("mark-to-market") as of the last day of each reporting period. The slight differences in value are related to minor variations in pricing assumptions by the valuation sources at the estimate date. BUDGET IMPACT ❑ This item has been budgeted. (Line item: Not applicable (information item) ADDITIONAL INFORMATION Schedules are attached summarizing the detail for both the short-term and long-term investment portfolios for the reporting period. In addition, a consolidated report of posted investment portfolio transactions for the month is attached. The attached yield analysis report is presented as a monitoring and reporting enhancement. In this report, yield calculations based on book values and market values are shown for individual holdings, as well as for each portfolio. Mellon Trust, the District's custodian bank, is the source for these reports. Transactions that were pending settlement at month end may not be reflected. Also provided is a summary of monthly investment balances and transactions within the State of California Local Agency Investment Fund (LAIF). In addition, the remaining $117.6 million proceeds from the 2003 COP debt issuance available for future capital improvements is being managed and invested by PIMCO with Union Bank of California serving as the Trustee. When combined with the reserves of the existing outstanding debt issues, total debt service reserves with trustees totals $179,510,406. These reports accurately reflect all District investments and are in compliance with California Government Code Section 53646 and the District's Investment Policy. Sufficient liquidity and anticipated revenues are available to meet budgeted expenditures for the next six months. The table on the following page details the book balances of the District's investment accounts at month-end. A graphical representation of month-end balances is shown on the attached bar chart. CADocurnents and SellingslpopelLocal Settings\Temporary Internet FIIQs\OLKBRItem 14(b).TREASRPT2.doc Page 2 Book Balances Estimated Investment Accounts October 31,2003 Yield(%) ' State of Calif.LAW $ 35,500,246 1.60 Union Bank Checking Account 724,723 0.94(1) PIMCO—Short-term Portfolio 37,478,445 1.40 PIMCO-Long-term Portfolio 380,081,334 2.84 Petty Cash 5,000 N/A TOTAL $453,7.119,748 2.63 Debt Service Reserves w/Trustees $179,, 406 2.11 (1) This is the annualized yield for the month of September. The October annualized rate was not available as of the date of this report. ATTACHMENTS 1. Graph of Monthly Investment Balances by Type — Last Six Months 2. Investment Transactions and Balances in the State Local Agency Investment Fund 3. PIMCO Monthly Investment Recap &Yield Analysis Report 4. PIMCO Performance Monitoring Report— Liquid Operating Monies 5. PIMCO Performance Monitoring Report— Long-Term Operating Monies 6. Mellon Trust Asset Summary by Asset Type with Sectors — Liquid Operating Monies 7. Mellon Trust Asset Summary by Asset Type with Sectors— L-T Operating Monies 8. Mellon Trust Yield Analysis Report 9. Mellon Trust Asset Detail —Consolidated 10.Mellon Trust Transaction Detail - Consolidated MW:lc C:1Documents and Settings%popeltocal SettingslTemporary internet ReMOLlBRltem 14(b).TREASRPMdoc Page 3 Prepared by Finance, 10/8/2003, 10:41 AM Monthly Investment Balances by Type- Last Six Months $700,000,000 ............................... i $600,000,000 i $500,000,000 -- - -- $400,000,000 - - F $300,000,000 $200,000,000 $100,000,000 S $O April May June July August September 2003 2004 2003 2003 2003 2003 O PIMCO- Long-term ®PIMCO- Short-term ®COP Debt Reserves ®LAIF 0 Bank Accts 0 Petty Cash G:\excel.dta\fin\220\white\Treasury Management\Monthly Investment Balances Graph.xls K Y Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2003 Par Value Book Value Market Value Rate Yield Balance September 1,2003 $33,946,098 $33,946,098 $33,946,098 1.632 1.632 Deposits: 9/19/2003 12,600,000 12,600,000 12,600,000 1.632 1.632 Withdrawals: 9/3/2003 (300,000) (300,000) (300,000) 1.632 1.632 9/10/2003 (4,300,000) (4,300,000) (4,300,000) 1.632 1.632 9/17/2003 (2,000,000) (2,000,000) (2,000,000) 1.632 1.632 9/24/2003 (5,700,000) (5,700,000) (5,700,000) 1.632 1.632 Total Withdrawls (12,300,000) (12,300,000) (12,300,000) 1.632 1.632 Balance September 30,2003 $34,246,098 $34,246,098 $34,246,098 1.632 1.632 v P I M C O October 6, 2003 Mr. Mike White, CPA Controller Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Dear Mike: The following is a description of events in the bond markets during the month of September in addition to an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Tenn, Liquid, and COP Proceeds portfolios over the period. Also included is a section on our outlook and preferred strategies to be pursued in your portfolios during the coming months. Bond Market Re a": The bond market rallied during September, as most fixed-income sectors posted strong returns. U.S. Treasuries returned 3.02%, while the S&P 500 was down 1.06% for the month. Yields declined across maturities, with bonds maturing between 2 and 10 years outperforming both shorter and longer maturities. Mortgage backed securities performed well, returning 1.70%, but trailed Treasuries by 6 basis points after adjusting for duration. Corporate bonds also performed well as the Lehman Credit Index returned 3.49%, for a duration-adjusted excess return of 41 basis points. Lower quality investment grade names outperformed as BBB-rated bonds led Treasuries by 57 basis points on a duration-adjusted basis. The Federal Reserve elected to keep rates unchanged, citing weakening labor markets and a benign inflation outlook. Nonetheless, consumers boosted their spending in August as federal government tax relief helped boost Americans'disposable income. Personal income rose by 0.2% after climbing a revised 0.3% in July, and personal consumption increased 0.8% after rising by a revised 0.9%. Spending on durable goods advanced 2.8% in August, following an increase of 3.3% in July. In spite of the increases in spending and income, the University of Michigan's index of consumer sentiment fell to 88.2 from 89.3, the third decline in four months. Manufacturing remains sluggish, as capacity utilization was unchanged at 74.6 percent, and the Institute for Supply Management's factory index declined to 51.2 from 58.9. y Mr. Mike White, CPA October 6, 2003 Orange County Sanitation District Page 2 Treasury yield changes during the month of September are summarized as follows: ■ 3-month bills: -3 basis point to 0.94% ■ 6-month bills: -4 basis points to 1.00% ■ 2-year notes: -51 basis points to 1.46% ■ 5-year notes: -64 basis points to 2.83% ■ 10-year notes: -53 basis points to 3.94% ■ 30-year notes: -34 basis points to 4.88% Performance Attribution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 1.62 percent for the month of September, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 3 basis points. The following points summarize returns for the period ended September 30: • The Long-Term portfolio outperformed the benchmark by 3 basis points for the month but lagged by 17 basis points for the year-to-date period. • Portfolio duration, near the index, was neutral for performance. • Yield curve positioning, with an emphasis on intermediate maturity issues,was slightly positive for performance as yields fell most in this portion of the yield curve. • An underweight exposure to Treasuries was negative, as the sector rallied strongly during the month. • Exposure to mortgage-backed securities was negative for relative performance as the sector underperformed Treasuries on a duration-adjusted basis. • Corporate issues were positive for performance as the sector continued to perform strongly relative to other bond market sectors; however, an underweight exposure relative to the benchmark was negative. Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.13 percent during the month of September, outperforming the 3- month Treasury Bill Index by 5 basis points for the month. The following points summarize returns for the period ending September 30: • The Liquid portfolio outperformed the benchmark by 5 basis points for the month and by 12 basis points for the year-to-date period. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. Y Mr. Mike White, CPA October 6, 2003 Orange County Sanitation District Page 3 "2003 COP Proceeds—Future Construction"Portfolio The COP Proceeds portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.14 percent during the month of September, outperforming the 3- month Treasury Bill Index by 6 basis points for the month. The following points summarize returns for the period ending September 30: • The Liquid portfolio outperformed the benchmark by 6 basis points for the month. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. Outlook and StraWY: PIMCO is optimistic about the cyclical outlook, forecasting an upturn in the U.S. economy over the next six to 12 months with a positive spillover effect into global demand. This revival will, however, either exacerbate or fail to redress secular imbalances such as the U.S. current account deficit, structural rigidities in Europe and huge public sector debt in Japan. Confronting these problems will constrain growth, making PIMCO pessimistic about the sustainability of the upturn beyond a cyclical time frame. Inflation will be contained by slack in labor markets and industrial capacity as well as productivity growth. Tame inflation will help keep interest rates range-bound over the next year, with 10-year Treasury yields hovering around 4% to 5%. There will be volatility within this range, however, as markets reassess prospects for sustainable growth. Key elements of PIMCO's forecast are: • Disposable personal income will get a boost from federal tax cuts and the lagged impact of the mortgage refinancing boom. ■ The Federal Reserve will support recovery by keeping the federal funds rate at l percent for at least the next year. ■ It remains unclear whether corporate risk appetites will revive enough to fuel the rebound in capital spending and hiring that is critical for sustained growth. ■ Growth prospects are improved in Europe, helped by the U.S. recovery and tax cuts in Germany. Growth will remain below potential,however,held back by rigid product and labor markets. ■ External demand is sparking a recovery in Japan,especially among globally competitive Japanese corporations, which are paying higher real wages and investing surplus cash in China. A rally in Japanese stocks has bolstered the balance sheets of Japan's troubled banks. • China, struggling to employ workers shifting from agricultural labor and away from state-owned firms, will continue its export-driven economic policy for now. It will help fund the U.S.trade deficit on favorable terms and resist a currency revaluation. Caution is warranted given potential volatility around economic releases and full valuations in core bond sectors. Even so, we see ample opportunity to add value. With rates expected to be stable, we will target near-index duration but we will take modest exposure on the short end of J Mr. Mike White, CPA October 6, 2003 Orange County Sanitation District Page 4 the yield curve as markets are pricing in more restrictive central bank policies than we foresee. A short maturity focus will allow PIMCO to reap gains by "rolling down" the steep short/intermediate maturity yield curve. Another way to exploit the steep curve is to buy bonds with longer settlement periods and invest cash backing the unsettled issues in short term debt with relatively high yields. Mortgage-backed bonds are fairly priced now, so we will limit exposure to this sector. We will remain underweight in corporate bonds, which generally offer slim yield premiums for the credit risk we see. Outside these core strategies, however, real return bonds remain compelling as a long term holding given their historically attractive real yields and ability to hedge secular inflation risk. We look forward to discussing these and other topics with you in the near future. Best regards, Christine Telish, CFA John M. Miller, CFA Vice President Senior Vice President Orange County Sanitation District for the month ending September 30, 2003 Total Return Account-203 With Accrued Interest Without Accrued Interest Market Value 385,934,399 382,630,380 Book Value 377,810,436 374.506,417 Yield to Maturity 2.83 2.85 Short Term Account-603 With Accrued Interest Without Accrued Interest Market Value 37,953,653 37,486,333 Book Value 38,581,010 38.113.690 Yield to Maturity 1.43 1.39 2003 COP Proceeds - Future Construction - 2203 With Accrued Interest Without Accrued interest Market Value 129,942,230 129,655,812 Book Value 129,943,524 129,657,106 Yield to Maturity 1.43 1.43 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 September 2003) Page 1 of 1 Liquid Operating Monies(603) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • $37,953,653 PIMCO • Mellon $37,950,138 Historical Cost: • PIMCO $38,581,010 • Mellon $38,581,018 15.1.2 MODIFIED DURATION Of Portfolio: 0.25 Of Index: 0.20 15.1.3 1% INTEREST RATE CHANGE Dollar Impact(gain/loss)of I%Change: $94,884 15.1.4 REVERSE REPOS %of Portfolio in Reverse Repos: (see attached schedule) 0% 15.1.5 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: 57% 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: "AAA" 15.1.7 SECURITIES BELOW "A" RATING %of Portfolio Below"A": 0% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" Yes 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%)by Portfolio Index Period: I Month: 0.13 0.08 3 Months: 0.28 0.25 12 Months: 1.47 1.22 Fiscal Year-to-Date: 0.28 0.25 Commentary • The Liquid portfolio outperfonned the benchmark by 5 basis points for the month and by 25 basis points for the last 12 months. • PIN1C0's emphasis on higher yielding securities such as commercial paper and short-terni notes contributed to performance. G:\ivp.diaUlti\220\iihileXTrtasum NJgntW1Q0800-03--09.R1'edoc MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 September-2003) Page 1 of 3 Long-Tenn Operating Monies(203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $385,934,399 • Mellon $385,928,623 Historical Cost: • PIMCO $377,810,436 • Mellon $378,364,688 15.1.2 MODIFIED DURATION Of Portfolio: 2.31 Of Index: 2.38 15.1.3 1% INTEREST RATE CHANGE Dollar Impact(gain/loss)of I%Change: $8,915,085 15.1.4 REVERSE REPOS %of Portfolio in Reverse Repos: (see attached schedule) 0% 15.1.5 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: 17% 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: AAA 15.1.7 SECURITIES BELOW "A" RATING %of Portfolio Below"A": 1% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" No* 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%)by Portfolio Index Period: I Month: 1.62 1.59 3 Months: 0.34 0.34 12 Months: 4.09 4.55 Fiscal Year-to-Date: 0.34 0.34 • The Lang-Term portfolio outperformed the benchmark by 3 basis points for the month,but lagged by 46 basis points over the last 12 months. • Portfolio duration,near the index,was neutral for performance. • Yield curve positioning,with an emphasis on intermediate maturity issues,was slightly positive for performance as yields fell most in this portion of the yield curve. • An underweight exposure to Treasuries was negative,as the sector rallied strongly during the month. • Exposure to Mortgage-backed securities was negative for relative performance as the sector underperformed Treasuries on a duration-adjusted basis. • Corporate issues were positive for performance as the sector continued to perform strongly relative to other bond market sectors;however,an underweight exposure relative to the benchmark was negative. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (foa-the month ended 30 September 2003) Page 2 of 3 *Compliance Issues: $1,600,000 par of United Airlines(UAL)Pass-Through 2001-1-C(Enhanced Equipment Trust Certificate(EETC)-909317BC2),6.831%coupon,9/1/2008 maturity,representing 0.4%of the portfolio holdings on a par basis was purchased on 8/10/2001;and subsequently downgraded by Moody's from A3 to BAI (on 9/18/2001)and S&P from A-to BBB (on 9/20/2001). The security was further downgraded by Moody's from BAI to BA3 (on 12/21/2001)and by S&P from BBB to BB (on 6/28/02). Following news of the possible bankruptcy filing,the security was further downgraded in August(133 Moody's,B+by S&P). On November 29,2002,S&P further downgraded this issue to B,and shortly thereafter on December 9,2002,downgraded the issue one notch further to B-. On August 7,2003,S&P downgraded the issue to CCC+,while Moody's followed suit on August 28,2003 with a downgrade to CA. The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB rating in the event of a split. On September 24,UAL posted$105 million profit for the month of August and said it continued to generate positive cash flow in the month and met the requirements of its debtor- in-possession financing for the seventh straight month. This followed a comment from the CFO in mid-September regarding UAL's need to resolve four major issues before filing an updated business plan to the federal government seeking loan guarantees. He commented that there was no specific timetable by which UAL planned to file the updated plan with the Federal Air Transportation Stabilization Board(ATSB). This agency was charged with handing out tip to$10 billion in government-backed loans to worthy airlines. UAL applied for such backing of a$2 billion loan in the summer of 2002,but was rejected late last year prompting it to file for bankruptcy. The CFO said that the four issues that need to be resolved center on pensions,a contractual agreement with Atlantic Coast Airlines, municipal bond litigation and rejection of aircraft leases under what is known as section 1110 of the bankruptcy code. Under the agency's mandate,the government can back 90 percent of the private sector loan but the airline must arrange the other 10 percent on its own. Now,as Chapter 11 process continues to unfold,UAL has begun its search for exit financing and intends to apply to the government for the loan guarantees to raise cash needed to get out of bankruptcy. The CFO also said UAL may seek to raise more than$2 billion in financing through other means,but declined to specify in what form or through what capital markets. After the war in Iraq and the deadly SARS pummeled airline revenues earlier this year,the CFO commented that the revenue environment has improved significantly,aiding UAL in updating its business plan as part of the Chapter 11 exit strategy. PIMCO continues to negotiate with UAL on the District's holdings and currently lead an ad hoc committee. This has been an extremely complicated effort due to the complex nature of UAL's bankruptcy. These negotiations have required PIMCO's analysts access to non-public information and they are now at a point in these workout negotiations where restructuring options are being discussed. Details on the options are non-public information and therefore sharing them results in parties becoming restricted. In light of this extremely complicated bankruptcy,PIMCO will continue to strive to act in the most prudent manner to obtain maximum recovery. 5,000,000 par of Philip Morris-Altria NT(cusip 718154CH8).4/l/2004 maturity,representing 1.3%of the portfolio holdings on a par basis was purchased on 8/6/2001 at a price of 105.26. This security was subsequently downgraded by Moody's from A2 to Baal on 4/01/2003,and then from Baal to Baa2 on 4/23/03. The security was downgraded by S&P from A-to BBB on 4/10/2003. The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB rating in the event of a split. The Philip Morris USA downgrade activity was a result of a negative court judgment and its associated bonding requirement. In the Miles case,named after the initial plaintiff in the class-action lawsuit,an Illinois court fined Philip Morris$10.3 billion for allegedly deceiving smokers into thinking that"light"cigarettes were safer than regular cigarettes. The company,now a subsidiary of Altria,has said that the lawsuit was flawed and that it planned to appeal the ruling and the class certification order that preceded it. Prior to the judgment,PIMCO's analysis of Altria(the holding company and issuer of the debt)shows investment grade credit metrics even excluding in its entirety Philip Morris USA(the domestic tobacco subsidiary and the entity subject to all of the legal suits). The analysis was based on the assumption that the horizon of any final verdict would be years in the future,while the company would generated significant cash flow in the interim. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 30 September 2003) Page 3 of 3 On September 16,the Illinois Supreme Court said it would hear an appeal of the$10.1 billion verdict against Altria and also reinstated an earlier requirement that it post$6.8 billion while it appeals the class action case,rather than the$12 billion as initially required. The development settles months of uncertainty following a significant March decision in Madison County Circuit Court when Judge Nicholas Byron awarded$10.1 billion to plaintiffs who claimed Philip Morris USA misled them into believing the company's so called light cigarettes were less harmful than full-flavored cigarettes. PIMCO believes management is unlikely to sacrifice good subsidiaries to fund the bad one,which would create a bad precedent for future court cases. PIMCO has continued to hold their positions at the holding company(Altria)level,but have suspended any additional purchases until greater clarity emerges on the likelihood of various outcomes. Split Rated Securities Still In Compliance: The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB in the event of a split rating. •$4,000,000 par of Ford Motor Credit securities($3 million represented by cusip 345397SJ3 maturing 7/16/04 and$1 million represented by cusip 345397GV9 maturing 5115105), representing 1.0%of the portfolio holdings on a par basis. The securities were downgraded on 10/16/2001 by S&P from A to BBB+;and now carry a Moody's rating of A3 after a further downgrade from A2 on 1/16/2002 and an S&P rating of BBB after a further downgrade from BBB+on 10/25/2002. •$3,000,000 par of General Motors Acceptance Corp securities(cusip 370425SD3)maturing on August 28,2007,representing 0.8%of the portfolio holdings on a par basis. The securities were downgraded on 10/16/2001 by S&P from A to BBB+,and a further downgrade to BBB occurring on 10/16/2002. The securities now carry a Moody's rating of A3 after a further downgrade from A2 on 6/14/03. •$3,500,000 par of Virginia Electric Power NT securities(cusip 927804EN0),maturing in 2006,represents 0.9%of the portfolio holdings on a par basis. The security was downgraded on 10/21/2002 by S&P from A-to BBB+,but continues to carry a Moody's rating of A3. G:\wp.dtayn5220bvhitelTreasitry Mgmfl1,T0800-03-09.RPT.doc '...................................................._.........._.............................................................................-..................................................... ................ ... ..... .. ................ .............. ., .. ................_---------�_ Y-_ ,.-.------_-- Asset Summary Report ID:GL825 Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LI UID OPER-PIMCO-OCSF07511102 9 ..................................._ ......................_...___............._...._....._.._..._._._......_9�30[2003_._.. ......_...._............................................................._..............._............._._........ ....._......_._._....................._status;_Fnv...... ........-----------.....------ ........... .... Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S.DOLLAR INTEREST 468,854.70 468,854.70 1.24% 0.00 CERTIFICATES OF DEPOSIT-DOMESTIC 1,400,000.000 1.400.000.00 1,400,000.00 3.69% 0.00 FED HM LOAN BNK-LESS THAN 1YR 6.100.000.000 6,081,765.24 6,081,765.24 16.03% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 1 6,200,000.000 6,171,369.67 6,171,369.67 16.26% 0.00 FNMA ISSUES- LESS THAN IYR 3.300.000.000 3,288,893.54 3,288,893.54 8.67% 0.00 MUTUAL FUNDS 175.658.110 175.658.11 175.658.11 0.460/a 0.00 TREASURY BILLS- LESS THAN IYR 1,200,000.000 1,194,191.67 1,194,191.67 3.150/0 0.00 U.S.DOLLAR 18,375,658.110 18,780,732.93 18,780,732.93 49.49% 0.00 CASH&CASH EQUIVALENTS 18,375,658.110 18,780,732.93 18,780,732.93 49.49% 0.00 FIXED INCOME SECURITIES U.S.DOLLAR BANKING&FINANCE 4,950,000.000 5,121,180.00 5,036,662.50 13.27% -84,517.50 INDUSTRIAL 300.000.000 308.808.00 302.013.00 0.800/0 -6,795.00 U.S.AGENCIES 7.200.000.000 7,441,266.00 7,293,131.32 19.22% -148.134.68 U.S.GOVERNMENTS 5,800,000.000 6,251,984.38 5,877,952.00 15.49% -374.032.38 UTILITY-TELEPHONE 650,000.000 677,046.50 659,646.00 1.74% -17,400.50 U.S.DOLLAR 18,900,000.000 19,800,284.88 19,169,404.82 50.51% -630,880.06 FIXED INCOME SECURITIES 18,900,000.000 19,800,284.88 19,169,404.82 50.51% -630,880.06 TOTAL ASSETS-BASE: 37,275,658.110 38,581,017.81 37,950,137.75 100.000/0 -630,980.06 1 Workbench ..........__----...._.........................._........._.......................................................................__......._.__........__...........__.........................._...............................................................................-........................................................................................................................................._........................................................................................................._............................... ..... _-............ .......y _ Report ID:GL8251 Asset Summary Base Currency:USD 3 by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER PIMCO. OCSF07522202 __. .._. 9�30/2003__ _......___...... .. ........._ Status.FINAL............. .. Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S.DOLLAR CASH -180,169.24 -180,169.24 -0.05% 0.00 PENDING TRADES -24.662,805.47 -24,662,805.47 -6.39% 0.00 INTEREST 3.332.359.74 3,332,359.74 0.W/o 0.00 COMMERCIAL PAPER- DISCOUNT 3.400.000.000 3,388,394.44 3,388,394.44 0.880/0 0.00 FED HM LOAN BNK- LESS THAN IYR 32,300,000.000 32,183,468.43 32.183.468.43 8.34% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 1 9,700,000.000 9,672,980.11 9,672,980.11 2.51% 0.00 FNMA ISSUES-LESS THAN 1YR 42.800.000.000 42,651,438.17 42,651,438.17 11.05% 0.00 MUTUAL FUNDS 143.053.620 143.053.62 143.053.62 0.04% 0.00 TREASURY BILLS-LESS THAN 1YR 4,500,000.000 4,478,218.75 4,478,218.75 1.160/0 0.00 U.S. DOLLAR 92,843,053.620 71,006,938.55 71,006,938.55 18.40% 0.00 CASH&CASH EQUIVALENTS 92,843,053.620 71,006,938.55 71,006,938.55 18.40% 0.00 FIXED INCOME SECURITIES U.S.DOLLAR ABS-AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 244,000.00 0.06% -1.356,000.00 BANKING&FINANCE 32.335.000,000 33,468,411.00 34,442,367.45 8.92% 973,956.45 COLLATERALIZED MORTGAGE OBLIGATION 2.504.229.760 2,504,229.76 2,718,717.04 0.70% 214.487.28 FHLMC MULTICLASS 1,198,327.690 1.199.604.37 1,246,776.08 0.32% 47.171.71 FHLMC POOLS 194,797.030 195,424.71 200,869.18 0.050/0 5.444.47 FNMA POOLS 47,749,442.050 48,990,910.44 49.207.916.28 12.75% 217.005.84 GNMA MULTI FAMILY POOLS 3,718,877.150 3,700,333.93 3,779,028.74 0.980/0 78,694.81 GNMA SINGLE FAMILY POOLS 11,850,348.080 12,071,678.59 12,432,369.33 3.22% 360,690.74 INDUSTRIAL 12,000,000.000 12,458,780.00 12.436.500.00 3.22% -22,280.00 INFLATION INDEXED SECURITIES 34.241.230.000 34.258.241.71 38.367.363.32 9.94% 4,109,121.61 PVT PLACEMENTS-MORE THN 1YR 752,000.000 826,199.84 826,199.84 0.21% 0.00 U.S.AGENCIES 41,204,132.880 42,280,838.46 44,547,779.14 11.54% 2,266,940.68 U.S.GOVERNMENTS 92,597,276.280 100,770,646.50 100,926,237.71 26.15% 155.591.21 UTILITY-ELECTRIC 6,500,000.000 6,438,210.00 6.967.160.00 1.81% 528,950.00 UTILITY-TELEPHONE 6,000,000.000 6,594,240.00 6,578,400.00 1.70% -15,840.00 U.S.DOLLAR 294,445,660.920 307,357,749.31 314,921,684.11 81.60% 7,563,934.80 1 Workbench ......._.._._...._._......................_._............._._....__._.......,.._......,........._._.....__._..._........._....__._._...._._._...._._._......._...._...._._._._..._._._..........__._......_.............................._........................................._........................._._._...._._._._._...._.........._._._.....................__.._......_._._...._._._........_._..._._._......................................................................................................_.............. Asset Summary Report ID:GL8251 ry Base Currency:USD I by Asset Type with Sectors Alternate Base Currency: Exchange Rate: I LONG TERM OAER PIMCO..OCSF07522202 1 _.... ...... _...._._ ...._.........._............_..............................9�30/2003.........................._._. ....._Status:FINAL Net Unrealized Cost Market Value %of Gain/Loss Description Shares Par Base Base Total Base FIXED INCOME SECURITIES 294,445,660.920 307,357,749.31 314,921,684.11 81.600/0 7,563,934.80 TOTAL ASSETS-BASE: 387,288,714.540 378,364,687.86 385,928,622.66 100.000/0 7,563,934.80 2 Workbeneh YLDANAL YIELD ANALYSIS PAGE i 1 OCSF07511102 2003/09/30 RUN DATE i 10/06/03 DISTRICT: LIQUID OPERATING RUN TIME f 10.31.55 PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH 6 CASH EQUIVALENTS 500,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.532 497,660.00 2.71 313384NJ4 MAT 10/24/2003 A-1+ 497,660.00 1.33 1,500,000.00 FEDERAL HOME LN BKS CONS DISC .000 .000 P-1 99.736 1,496,037.72 8.16 313384NPO MAT 10/29/2003 A-1+ 1,496,037.72 3.99 3,100,000.00 FEDERAL HOME LN BKS CONS DISC .000 .000 P-1 99.788 3,093,442.53 16.89 313384PL7 MAT 11/19/2003 A-1+ 3,093,442.53 8.25 1,000,000.00 FEDERAL HOME LN BKS CINS DISC .000 .000 P-1 99.462 994,625.00 5.43 313384UK3 MAT 03/17/2004 A-1+ 994,625.00 2.65 2,400,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.721 2,393,314.67 13.06 313396PT4 MAT 11/26/2003 A-1+ 2,393,314.67 6.39 3,800,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.422 3,778,055.00 20.63 313396U24 MAT 03/31/2004 A-1+ 3,778,055.00 10.08 1,000,000.00 FEDERAL NATL MTG ASSN DISC .000 .000 P-1 99.468 994,677.08 5.43 313588PD1 MAT 11/12/2003 A-1+ 994,677.08 2.65 2,300,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.749 2,294,216.46 12.52 313588PL3 MAT 11/19/2003 A-1+ 2,294,216.46 6.12 1,200,000.00 U S TREASURY BILL .000 .000 P-1 99.516 1,194,191.67 6.52 912795PK1 DUE 02/12/2004 DD 08/14/2003 A-1+ 1,194,191.67 3.19 1,400,000.00 WELLS FARGO BK NA INSTL C/D .000 1.060 100.000 1,400,000.00 7.64 94975UXB8 1.060% 10/23/2003 DD 09/23/03 1,400,000.00 3.74 175,658.11 DREYFUS TREASURY CASH MGMT .000 .798 AAA 100.000 175,658.11 .95 996085247 AAA 175,658.11 .47 -------- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 .027 18,3ll,878.23 100.00 18,311,878.23 48.86 FIXED INCOME SECURITIES 1,000,000.00 ASSOCIATES CORP NORTH AMER .000 5.658 AA1 102.515 1,041,290.00 5.34 046003KA6 5.800% 04/20/2004 DD 04/20/99 AA- 1,025,150.00 2.74 YLDANAL YIELD ANALYSIS PAGE s 2 0CSF07511102 2003/09/30 RUN DATE 10/06/03 DISTRICT: LIQUID OPERATING RUN TIME s 10.31.55 ----------------------------------------------------------------------------------------------------------------------------- PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 650,000.00 BELL ATLANTIC-NEW JERSEY INC .000 5.789 AA3 101.484 677,046.50 3.44 077858AA6 5.875% 02/01/2004 DD 02/01/94 A+ 659,646.00 1.76 300,000.00 COLGATE PALMOLIVE MTN TR 00058 .000 5.235 AA3 100.671 308,808.00 1.57 19416QCK4 5.270% 12/01/2003 DD 11/24/98 AA- 302,013.00 .81 1,350,000.00 FEDERAL FARM CR BKS CONS SYSTE .000 5.330 AAA 101.316 1,399,963.50 7.13 31331H6G7 6.40% 01/23/2004 DD O1/01/1999 AAA 1,367,760.06 3.65 550,000.00 FEDERAL FARM CR BKS CONS MTN .000 4.998 AAA 100.032 565,229.50 2.87 31331RC78 5.000% 10/02/2003 DD 10/02/98 AAA 550,178.42 1.47 1,100,000.00 FEDERAL HOME LN MTG CORP DEB .000 3.701 AAA 101.323 1,125,905.00 5.81 3134A4PH1 3.750% 04/15/2004 DD 04/15/02 AAA 1,114,558.28 2.97 4,200,000.00 FEDERAL NAIL MTG ASSN DEBS .000 5.052 AAA 101.444 4,350,168.00 22.22 31359HEMI 5.125% 02/13/2004 DD 02/08/99 AAA 4,260,634.56 11.37 1,000,000.00 GENERAL ELEC CAP MTN #TR 00545 .000 1.239 AAA 100.062 1,001,089.00 5.21 36962GYS7 VAR RT 05/20/2004 DD 05/20/02 AAA 1,000,620.00 2.67 1,000,000.00 LEHMAN BROS HLDGS INC .000 6.453 A2 102.672 1,045,590.00 5.35 524908BZ2 6.625% 04/01/2004 DD 03/26/99 A 1,026,710.00 2.74 500,000.00 PAINE WEBBER GROUP INC NTS .000 6.396 AA2 100.843 519,405.00 2.63 695629CE3 6.450% 12/01/2003 DD 12/01/98 AA+ 504,215:00 1.35 1,000,000.00 US BANCORP MTN #TR 00119 .000 5.035 AA3 102.829 1,046,310.00 5.36 91159HEY2 6.000% 05/15/2004 DD 05/10/99 A+ 1,028,280.00 2.74 5,800,000.00 U S TREASURY BONDS .000 11.718 AAA 101.344 6,251,984.38 30.66 912810DG0 11.875% 11/15/2003 DD 10/05/83 AAA 5,877,952.00 15.68 YLDANAL YIELD ANALYSIS PAGE i 3 OCSF07511102 2003/09/30 RUN DATE i 10/06/03 DISTRICT: LIQUID OPERATING RUN TIME t 10.31.55 ------------------------------------------------------------------------------------------------------------------------------ PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 450,000.00 WELLS FARGO 6 CO SUBNT 1.615 6.102 AA2 100.375 467,496.00 2.35 949740BY9 6.125% 11/01/2003 DD 11/01/93 A 451,687.50 1.21 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .007 5.725 19,800,284.88 100.00 19,169,404.82 51.16 -------- ------- ----------------- --------- TOTAL .003 2.801 38,112,163.11 100.00 37,481,283.05 100.00 ------------------ --------- YLDANAL YIELD ANALYSIS PAGE s 4 OCSF07522202 2003/09/30 RUN DATE 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME s 10.31.55 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH 6 CASH EQUIVALENTS 4,400,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.761 4,389,473.00 4.74 313384MUO MAT 10/10/2003 A-1+ 4,389,473.00 1.08 12,000,000.00 FEDERAL HOME LN BKS CONS DISC .000 .000 P-1 99.747 11,969,666.67 12.93 313384MZ9 MAT 10/15/2003 A-1+ 11,969,666.67 2.94 3,800,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.740 3,790,115.88 4.09 313384NJ4 MAT 10/24/2003 A-1+ 3,790,115.88 .93 2,000,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.433 1,968,663.33 2.14 313384NY1 MAT 11/07/2003 A-1+ 1,988,663.33 .49 3,400,000.00 FEDERAL HOME LN BKS CINS DISC .000 .000 P-1 99.460 3,381,623.47 3.65 313384UK3 MAT 03/17/2004 A-1+ 3,381,623.47 .83 6,700,000.00 FEDERAL HOME LN BKS CONS DISC .000 .000 P-1 99.462 6,663,926.08 7.20 313384UM9 MAT 03/19/2004 A-1+ 6,663,926.08 1.64 9,700,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.721 9,672,900.11 10.45 313396PT4 MAT 11/26/2003 A-1+ 9,672,980.11 2.37 13,700,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.745 13,665,023.14 14.77 313588MZ5 MAT 10/15/2003 A-1+ 13,665,023.14 3.35 11,300,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.733 11,269,873.65 12.18 313588PL3 MAT 11/19/2003 A-1+ 11,269,873.65 2.77 200,000.00 FEDERAL NATL MTG ASSN DISC .000 .000 P-1 99.637 199,274.00 .21 313588QA6 A-1+ 199,274.00 .05 800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.663 797,301.63 .86 313588QN8 MAT 12/15/2003 A-1+ 797,301.63 .20 200,000.00 FEDERAL NATL MTG ASSN DISC NT .000 .000 P-1 99.553 199,106.00 .21 313588TF2 A-1+ 199,106.00 .05 9,500,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.553 9,457,535.00 10.22 313588TGO HAT 02/19/2004 A-1+ 9,457,535.00 2.32 500,000.00 FEDERAL NATL MTG ASSN DISCUNT .000 .000 P-1 99.550 497,750.00 .53 313588TL9 MAT 02/23/2004 A-1+ 497,750.00 .12 YLDANAL YIELD ANALYSIS PAGE t 5 OCSF07522202 2003/09/30 RUN DATE t 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME t 10.31.55 PAR VALUE YT14 AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.556 1,792,008.00 1.93 313588TM7 MAT 02/24/2004 A-1+ 1,792,008.00 .44 1,800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.441 1,789,946.75 1.93 313588TN5 MAT 02/25/2004 A-1+ 1,789,946.75 .44 3,000,000.00 FEDERAL NATL MTG ASSN DISC .000 .000 P-1 99.454 2,983,620.00 3.22 313588UK9 A-1+ 2,983,620.00 .73 600,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.662 597,974.33 .64 36959JYCl 11/12/2003 597,974.33 .15 2,800,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.658 2,790,420.11 3.01 36959JZA4 12/10/2003 2,790,420.11 .68 4,500,000.00 U S TREASURY BILL .000 .000 P-1 99.516 4,478,218.75 4.94 912795PKI DUE 02/12/2004 DO 08/14/2003 A-1+ 4,478,218.75 1.10 143,053.62 DREYFUS TREASURY CASH MGMT .000 .798 AAA 100.000 143,053.62 .15 996085247 AAA 143,053.62 .04 -------- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 .000 92,517,553.52 100.00 92,517,553.52 22.72 FIRED INCOME SECURITIES 752,000.00 AIG SUNAMERICA GLOBAL REG S .000 5.325 109.867 826,199.84 .26 U00907AA0 5.850% 08/01/2008 DO 08/08/01 826,199.94 .20 23,000,000.00 COMMIT TO PUR FNMA SF MTG .000 4.881 AAA 102.438 23,331,250.00 7.48 01F0504A1 5.000% 10/01/2018 DO 10/01/03 AAA 23,560,625.00 5.78 1,500,000.00 COMMIT TO PUR FNMA SF MTG .000 5.814 AAA 103.203 1,534,375.00 .49 0IF0606AS 6.000% 10/01/2033 DO 10/01/03 AAA 1,548,046.80 .38 900,000.00 BEAR STEARNS MTN t TR 00459 .000 1.419 A2 100.062 899,406.00 .28 073928VC4 VAR RT 12/01/2003 DO 08/17/01 A 900,558.00 .22 1,500,000.00 CIT GROUP INC NEW SR NT .000 5.074 A2 108.406 1,527,135.00 .51 125581AD0 5.500% 11/30/2007 DO 12/02/02 A 1,626,090.00 .40 YLDANAL YIELD ANALYSIS PAGE s 6 OCSF07522202 2003/09/30 RUN DATE s 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME s 10.31.55 PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 9 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 5,000,000.00 CITIGROUP INC GLOBAL SUB NT .000 5.240 AA2 107.343 5,333,600.00 1.70 172967BP5 5.625% 08/27/2012 DD 08/26/02 A+ 5,367,150.00 1.32 108,193.21 FHLMC GROUP #G4-0353 .000 7.327 AAA 102.361 110,931.86 .03 3128DBMA2 7.500% 10/01/2004 DD 03/01/99 AAA 110,747.12 .03 7,500,000.00 FEDERAL HOME LN BK CONS BDS .000 6.615 AAA 107.713 7,997,625.00 2.56 3133MAUN7 7.125% 02/15/2005 DD 02/08/00 AAA 8,078,509.50 1.98 86,603.82 FHLMC GROUP #78-6064 .000 3.696 AAA 104.062 84,492.85 .02 31348SWZ3 6.384% 01/01/2028 DD 12/01/97 AAA 90,122.06 .02 11,350,000.00 FEDERAL NATL MTG ASSN DEBS .000 4.845 AAA 108.363 11,521,271.50 3.90 31359MJX2 5.250% 06/15/2006 DD 06/22/01 AAA 12,299,225.47 3.02 897,867.52 FNMA POOL 10254510 .000 4.871 AAA 102.645 924,803.55 .29 31371KVB4 5.000% 11/01/2017 DD 10/01/02 AAA 921,611.90 .23 187,647.80 FNMA POOL 10254631 .000 4.871 AAA 102.645 193,277.24 .06 31371KY47 5.000% 02/01/2018 DD 01/01/03 AAA 192,610.20 .05 168,398.70 FNMA POOL #0254760 .000 4.871 AAA 102.645 173,450.66 .05 31371KSV9 5.000% 06/01/2010 DD 05/01/03 AAA 172,852.05 .04 71,002.84 FNMA POOL #0254866 .000 4.871 AAA 102.645 73,956.93 .02 31371LCB3 5.000% 09/01/2018 DD 08/01/03 AAA 73,701.69 .02 245,061.28 FNMA POOL #0323980 .000 5.727 AAA 104.758 255,859.30 .08 31374T2M0 6.000% 04/01/2014 DD 09/01/99 AAA 256,720.83 .06 36,290.11 FNMA POOL #0357328 .000 4.877 AAA 102.532 37,378.82 .01 31376J4M8 5.000% 01/01/2018 DD 01/01/03 AAA 37,208.90 .01 84,340.76 FNHA POOL #0456482 .000 5.724 AAA 104.920 88,057.02 .02 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 88,406.25 .02 241,995.39 FNMA POOL #0509649 .000 5.724 AAA 104.820 252,658.31 .08 31383QEWO 6.000% 09/01/2014 DD 09/01/99 AAA 253,660.32 .06 194,825.10 FNMA POOL #0535451 .000 5.727 AAA 104.758 203,409.58 .06 31384VZQS 6.000% 06/01/2015 DD 07/01/00 AAA 204,094.51 .05 4,267,050.99 FNMA POOL #0535672 .000 5.727 AAA 104.758 4,455,067.93 1.41 31384WCH1 6.000% 01/01/2016 DD 12/01/00 AAA 4,470,069.17 1.10 YLDANAL YIELD ANALYSIS PAGE i 7 OCSF07522202 2003/09/30 RUN DATE s 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME i 10.31.55 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,440,144.82 FNMA POOL #0545296 .000 5.738 AAA 104.570 1,503,601.19 .47 31385HXZO 6.000% 11/01/2016 DD 10/01/01 AAA 1,505,963.90 .37 119,286.93 FNMA POOL #0545580 .000 5.734 AAA 104.633 124,543.01 .03 31385JCR7 6.000% 03/01/2027 DD 03/01/02 AAA 124,813.27 .03 230,876.56 FNMA POOL 10545990 .000 5.023 AAA 103.039 240,111.62 .07 31385JRT7 6.000% 11/01/2032 DD 10/01/02 AAA 237,892.14 .06 205,828.73 FNMA POOL f0555101 .000 5.738 AAA 104.570 214,898.05 .06 31385WU23 6.000% 10/01/2017 DD 11/01/02 AAA 215,235.74 .05 914,332.11 FNMA POOL #0555285 .000 5.803 AAA 103.395 9SO,905.40 .30 31385W2S7 6.000% 03/01/2033 DD 02/01/03 AAA 945,369.39 .23 403,365.36 FNHA POOL #0555363 .000 4.871 AAA 102.645 415,466.32 .13 31385W5Y1 5.000% 04/01/2018 DD 03/01/03 AAA 414,032.48 .10 902,305.29 FNMA POOL #0555528 .000 5.803 AAA 103.395 938,397.51 .29 31385XD95 6.000% 04/01/2033 DD 05/01/03 AAA 932,934.31 .23 339,493.05 FNMA POOL #0555545 .000 4.871 AAA 102.645 349,677.84 .11 31385XES2 5.000% 06/01/2018 DD 05/01/03 AAA 348,471.05 .09 905,629.54 FNMA POOL #0555640 .000 5.803 AAA 103.395 941,854.72 .29 31385XHRI 6.000% 07/01/2033 DD 06/01/03 AAA 936,371.41 .23 79,020.96 FNMA POOL #0576386 .000 5.768 AAA 104.028 82,502.82 .02 31386XJ72 6.000% OS/01/2016 DD 05/01/01 AAA 82,203.86 .02 224,094.92 FNMA POOL #0576739 .000 5.734 AAA 104.633 233,969.10 .07 31386XV86 6.000% 04/01/2016 DD 04/01/01 AAA 234,476.81 .06 264,776.77 FNMA POOL #0580898 .000 5.734 AAA 104.633 276,443.49 .08 31387DJ91 6.000% 05/01/2016 DD 05/01/01 AAA 277,043.37 .07 210,597.71 FNMA POOL #0594002 .000 5.734 AAA 104.633 219,877.17 .06 31387T3KB 6.000% 07/01/2016 DD 07/01/01 AAA 220,354.30 .05 268,419.45 FNMA POOL #0597376 .000 5.738 AAA 104.570 280,246.68 .08 31387XT96 6.000% 09/01/2016 DD 08/01/01 AAA 280,687.05 .07 202,673.50 FNMA POOL #0605259 .000 5.738 AAA 104.570 211,603.80 .06 31388HMG1 6.000% 09/01/2016 DD 09/01/01 AAA 211,936.31 .05 YLDANAL YIELD ANALYSIS PAGE : 8 OCSF07522202 2003/09/30 RUN DATE : 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 10.31.55 eccaccoaaaaa=aaa=a�xccaae==e=-aaac=Dee===a==Dace.-aaaccaa-=eea:=ea-ace=eneacacaWcaaacaa-aria==aca-c==e____`_�__=====naaaaaca=a_. PAR VALUE YrM AT CURRENT MOODY MARKET TOTAL COST/ TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- - ------- -------- ------ ---------- 151,460.24 FNMA POOL 10608366 .000 5.734 AAA 104.633 158,133.95 .05 3138OLZ78 6.000% 10/01/2016 DD 09/01/01 AAA 158,477.11 .04 172,684.62 FNMA POOL #0616734 .000 5.734 AAA 104.633 180,293.53 .05 31388WEF9 6.000% 12/01/2016 DD 12/01/01 AAA 180,684.77 .04 216,112.72 FNMA POOL #0630812 .000 5.763 AAA 104.112 225,635.18 .07 31389NYH2 6.000% 02/01/2017 DD 02/01/02 AAA 224,997.07 .06 971,978.16 FNMA POOL #0632376 .000 5.730 AAA 104.720 1,014,805.96 .32 31389QQ50 6.000% 07/01/2017 DD 07/01/02 AAA 1,017,858.54 .25 557,031.03 FNMA POOL #0653116 .000 5.730 AAA 104.720 581,576.05 .18 31390QSDB 6.000% 07/01/2017 DD 07/01/02 AAA 583,325.46 .14 242,834.96 FNMA POOL #0673280 .000 5.738 AAA 104.570 253,534.87 .08 31391P6R2 6.000% 08/01/2017 DD 11/01/02 AAA 253,933.27 .06 609,214.14 FNMA POOL #0681309 .000 4.871 AAA 102.645 627,490.56 .19 31391Y3S4 5.000% 02/01/2018 DO 02/01/03 AAA 625,324.99 .15 76,565.99 FNMA POOL #0681334 .000 4.871 AAA 102.645 78,862.97 .02 31391Y4T1 5.000% 02/01/2018 DD O1/01/03 AAA 78,590.80 .02 38,763.51 FNMA POOL #0685665 .000 4.871 AAA 102.645 39,926.42 .01 31400EW22 5.000% 02/01/2018 DD 02/01/03 AAA 39,788.62 .01 330,350.03 FNMA POOL #0686318 .000 4.871 AAA 202.645 340,260.53 .10 31400FPB7 5.000% 03/01/2018 DD 03/01/03 AAA 339,086.24 .08 131,275.19 FNMA POOL #0688739 .000 4.871 AAA 102.645 135,213.44 .04 31400JEL9 5.000% 06/01/2018 DO 06/01/03 AAA 134,746.80 .03 776,638.16 FNMA POOL #0693834 .000 4.871 AAA 102.645 799,937.30 .25 31400PY74 5.000% 03/01/2018 DD 03/01/03 AAA 797,176.59 .20 294,023.47 FNMA POOL #0695852 .000 4.871 AAA 102.645 302,844.17 .09 31400SBV0 5.000% 05/01/2018 DD 05/01/03 AAA 301,799.01 .07 877,339.71 FNMA POOL #0695889 .000 4.871 AAA 102.645 903,659.90 .28 31400SC23 5.000% 05/01/2018 DD 05/01/03 AAA 900,541.22 .22 28,882.46 FNMA POOL #0697026 .000 4.871 AAA 102.645 29,748.94 .00 31400TLF2 5.000% 05/01/2018 DD 04/01/03 AAA 29,646.27 .01 YLDANAL YIELD ANALYSIS PAGE : 9 OCSF07522202 2003/09/30 RUN DATE : 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 10.31.55 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 138,264.69 FNMA POOL #0698939 .000 5.728 AAA 104.745 144,356.98 .04 31400VPY2 6.000% 09/01/2017 DD 03/01/03 AAA 144,825.78 .04 294,427.33 FNMA POOL #0702210 .000 4.875 AAA 102.557 303,260.15 .09 31401ADP9 5.000% 05/01/2018 DD 05/01/03 AAA 301,955.29 .07 84,890.02 FNMA POOL #0703195 .000 5.714 AAA 105.008 88,630.49 .02 31401BGC3 6.000% 01/01/2017 DD 04/01/03 AAA 89,141.15 .02 312,665.02 FNMA POOL #0709146 .000 4.871 AAA 102.645 322,044.97 .10 31401HZM7 5.000% 06/01/2018 DD 06/01/03 AAA 320,933.54 .08 834,646.06 FNMA POOL #0710235 .000 4.871 AAA 102.645 859,685.45 .27 31401KBCO 5.000% 06/01/2018 DD 06/01/03 AAA 856,718.53 .21 27,298.34 FNMA POOL #0713344 .000 4.871 AAA 102.645 28,117.29 .00 31401NP52 5.000% 06/01/2018 DD 06/01/03 AAA 28,020.25 .01 2,651,557.74 FNMA POOL #0720369 .000 4.875 AAA 102.557 2,731,104.47 .86 31401WJNO 5.000% 06/01/2018 DD 06/01/03 AAA 2,719,353.17 .67 324,411.47 FNMA POOL #0721629 .000 4.862 AAA 102.832 334,143.82 .10 31401XVW4 5.000% 07/01/2018 DD 06/01/03 AAA 333,598.90 .08 438,461.74 GNMA POOL #0596612 .000 6.177 AAA 105.223 460,179.30 .14 36200BYH4 6.500% 09/15/2032 DD 09/01/02 AAA 461,361.11 .11 1,480,019.82 GNMA POOL #0569358 .000 6.206 AAA 104.735 1,514,707.78 .49 362000QK3 6.500% 04/15/2032 DD 04/01/02 AAA 1,550,091.77 .38 64,629.32 GNMA POOL #0569685 .000 6.176 AAA 105.254 67,830.49 .02 3620002S2 6.500% 02/15/2032 DD 02/01/02 AAA 68,024.89 .02 108,542.02 GNMA POOL #0570019 .000 6.177 AAA 105.223 113,918.25 .03 3620ORG48 6.500% 07/15/2032 DD 07/01/02 AAA 114,210.80 .03 710,211.24 GNMA POOL #0574323 .000 6.176 AAA 105.254 745,388.89 .23 36200WAY7 6.500% 12/15/2031 DD 12/01/01 AAA 747,525.10 .18 70,464.87 GNMA POOL #0575364 .000 6.176 AAA 105.254 73,955.08 .02 36200XFD6 6.500% 11/15/2031 DD 11/01/01 AAA 74,167.03 .02 27,102.45 GNMA POOL #0587117 .000 6.177 AAA 105.223 28,444.87 .00 36201HG22 6.500% 06/15/2032 DD 06/01/02 AAA 28,517.92 .01 YLDANAL YIELD ANALYSIS PAGE s 10 OCSF07522202 2003/09/30 RUN DATE : 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME s 10.31.55 ----------------------------------------------------------------------------------------------------------------------------- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOT( YIELD S-P PRICE MARKET VALUE $ TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 80,817.68 GNMA POOL 10587439 .000 6.177 AAA 105.223 84,820.69 .02 36201MS45 6.500% 11/15/2032 DD 12/01/02 AAA 85,038.51 .02 18,104.46 GNHA POOL 10421389 .000 6.159 AAA 105.535 19,001.20 .00 36206UC23 6.500% 04/15/2026 DD 04/01/96 AAA 19,106.57 .00 27,092.30 GNMA POOL #0449851 .000 6.202 AAA 104.797 28,434.22 .00 36208FWLO 6.500% 01/15/2028 DD 01/01/98 AAA 28,391.85 .01 89,231.28 GNMA POOL #0466845 .000 6.263 AAA 105.473 93,651.02 .02 36209BTA6 6.500% 06/15/2028 DD 06/01/98 AAA 94,114.60 .02 677,509.66 GNMA POOL #0468052 .000 6.163 AAA 105.473 711,067.56 .22 36209C5M4 6.500% 07/15/202B DD 07/01/98 AAA 714,587.46 .18 262,214.03 GNMA POOL #0476041 .000 6.163 AAA 105.473 274,792.11 .08 36209MZE7 6.500% 06/15/2028 DD 06/01/98 AAA 276,564.11 .07 217,313.68 GNMA POOL #0478626 .000 6.168 AAA 105.379 227,737.95 .07 362090VT9 6.500% 01/15/2029 DD 01/01/99 AAA 229,002.79 .06 249,614.15 GNMA POOL #0480598 .000 6.168 AAA 105.379 261,587.84 .08 36209S3F6 6.500% 10/15/2028 DD 10/01/98 AAA 263,040.67 .06 558,777.46 GNMA POOL #0485527 .000 6.176 AAA 105.254 586,454.41 .18 36209YLG1 6.500% 06/15/2031 DD 06/01/01 AAA 588,135.12 .14 633,585.27 GNMA POOL #0485610 .000 6.176 AAA 105.254 664,967.54 .21 36209YN38 6.500% 07/15/2031 DD 07/01/01 AAA 666,873.27 .16 133,203.96 GNMA POOL #0485682 .000 6.176 AAA 105.254 139,801.72 .04 36209YRB6 6.500% 08/15/2031 DD 08/01/01 AAA 140,202.38 .03 140,291.53 GNMA POOL #0485703 .000 6.176 AAA 105.254 147,240.35 .04 36209YRY6 6.500% 08/15/2031 DD 08/01/01 AAA 147,662.32 .04 16,446.65 GNMA POOL #0512235 .000 6.172 AAA 105.316 17,261.27 .00 36211GBC6 6.500% 11/15/2029 DD 11/01/99 AAA 17,321.02 .00 244,244.12 GNMA POOL #0514326 .000 6.168 AAA 105.379 255,960.20 .08 36211JLF2 6.500% 07/15/2029 DD 07/01/99 AAA 257,381.79 .06 67,280.20 GNMA POOL #0530053 .000 6.209 AAA 104.682 70,612.68 .02 36212CZS3 6.500% 04/15/2031 DD 04/01/01 AAA 70,430.04 .02 YLDANAL YIELD ANALYSIS PAGE i 11 OCSF07522202 2003/09/30 RUN DATE i 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME i 10.31.55 PAR VALUE YTMS AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOT( YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 69,192.13 GNMA POOL #0530290 .000 6.176 AAA 105.254 72,511.20 .02 36212DC31 6.500% 03/15/2031 DD 04/01/01 AAA 72,827.42 .02 135,383.08 GNMA POOL #0537885 .000 6.176 AAA 105.254 142,088.77 .04 36212MRE1 6.500% 02/15/2031 DD 02/01/01 AAA 142,495.99 .03 16,205.48 GNMA POOL #0547512 .000 6.176 AAA 105.254 17,008.16 .00 36212YGV9 6.500% 04/15/2031 DD 04/01/01 AAA 17,056.90 .00 128,829.58 GNMA POOL #0547715 .000 6.176 AAA 105.254 135,009.37 .04 36212YN82 6.500% 02/15/2031 DD 02/01/01 AAA 135,598.17 .03 91,658.21 GNMA POOL #0552322 .000 6.176 AAA 105.254 96,198.16 .03 36213ESK3 6.500% 01/15/2032 DD 01/01/02 AAA 96,473.85 .02 727,214.83 GNMA POOL #0552466 .000 6.206 AAA 104.735 763,234.69 .24 36213EW36 6.500% 03/15/2032 DD 03/01/02 AAA 761,645.02 .19 555,614.68 GNMA POOL #0552659 .000 6.177 AAA 105.223 583,134.96 .18 36213E5U6 6.500% 07/15/2032 DD 07/01/02 AAA 584,632.55 .14 569,397.17 GNMA POOL #0561017 .000 6.176 AAA 105.254 597,600.13 .19 36213QG29 6.500% 07/15/2031 DD 07/01/01 AAA 599,312.78 .15 306,886.75 GNMA II POOL 10080395 .000 3.447 AAA 101.524 304,105.59 .09 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 311,562.32 .08 2,778,689.78 GNMA II POOL 1080408X .000 3.449 AAA 101.469 2,750,468.71 .89 36225CN28 6.500% 05/20/2030 DD 05/01/00 AAA 2,819,515.68 .69 3,000,000.00 GTE NORTH INC DEB SER A .000 5.920 Al 101.359 3,063,750.00 .96 362337AD9 6.000% 01/15/2004 DD 01/15/94 A+ 3,040,770.00 .75 5,000,000.00 GENERAL ELEC CAP MTN #TR 00575 .000 5.188 AAA 105.046 5,203,500.00 1.66 36962GZY3 5.450% 01/15/2013 DD 12/06/02 AAA 5,252,300.00 1.29 3,000,000.00 GENERAL MTRS ACCEP CORP SR NT .000 5.793 A3 105.734 3,064,350.00 1.00 370425SD3 6.125% 08/28/2007 DD OB/29/02 BBB 3,172,020.00 .70 3,000,000.00 GOLDMAN SACHS GROUP INC SR NT .000 3.987 AA3 103.453 3,030,030.00 .98 38141GCS1 4.125% 01/15/2008 DD 01/13/03 A+ 3,103,590.00 .76 1,635,000.00 HOUSEHOLD FIN CORP NT .000 5.734 Al 111.187 1,772,820.00 .57 441812JW5 6.375% 10/15/2011 DD 10/23/01 A 1,817,907.45 .45 YLDANAL YIELD ANALYSIS PAGE s 12 OCSF07522202 2003/09/30 RUN DATE s 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME s 10.31.55 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 3,000,000.00 JP MORGAN CHASE 6 CO SUB NT .000 5.383 A2 106.812 3,127,260.00 1.01 46625HAT7 5.750% 01/02/2013 DD 11/25/02 A 3,204,360.00 .79 3,200,000.00 MORGAN STANLEY NT .000 3.592 AA3 100.921 3,195,648.00 1.02 617446HW2 3.625% 04/01/2008 DD 03/06/03 A+ 3,229,472.00 .79 3,000,000.00 NATIONAL RURAL UTILS COOP FIN .000 6.183 A2 117.265 3,465,480.00 1.11 637432CU7 7.250% 03/01/2012 DD 03/07/02 A 3,517,950.00 .86 5,000,000.00 PHILIP MORRIS COS INC NTS .000 7.336 BAA2 102.234 5,263,000.00 1.62 718154CH8 7.500% 04/01/2004 DD 04/01/97 BBB 5,111,700.00 1.25 3,497,276.28 SBA GTD DEV PARTN 2001-20C 1 .000 5.783 AAA 109.640 3,497,276.20 1.21 83162CLJO 6.340% 03/01/2021 AAA 3,834,413.71 .94 2,504,229.76 SBA GTD PARTN CTFS SBIC-PS 01 .000 6.116 AAA 108.565 2,504,229.76 .86 831641DD4 6.640% 02/10/2011 DD 02/21/01 NR 2,718,717.04 .67 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .000 44.793 CA 15.250 1,600,000.00 .07 909317BC2 6.831% 03/01/2010 DD 08/22/01 A- 244,000.00 .06 20,000,000.00 U S TREASURY NOTES .000 5.510 AAA 113.438 22,620,312.50 7.20 9128272JO 06.250% 02/15/2007 DD 02/15/97 AAA 22,687,500.00 5.57 3,414,810.00 US TREASURY INFLATION INDEX NT .000 3.228 AAA 112.281 3,725,779.05 1.21 9128273T7 3.625% 01/15/2008 DD 01/15/98 AAA 3,834,191.35 .94 14,576,900.00 US TREASURY INFLATION INDEX NT .000 3.391 AAA 114.281 16,209,968.79 5.28 9128274Y5 3.875% 01/15/2009 DD 01/15/99 AAA 16,658,699.97 4.09 57,100,000.00 U S TREASURY NOTES .000 5.283 AAA 108.844 62,782,901.47 19.73 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 62,149,924.00 15.25 12,000,000.00 U S TREASURY NT .000 3.183 AAA 102.120 11,970,156.25 3.89 912828BG4 3.250% 08/15/2008 DD 08/15/03 AAA 12,254,400.00 3.01 3,000,000.00 VERI20N GLOBAL FDG CORP GLOBAL .000 6.254 A2 117.921 3,530,490.00 1.12 92344GAT3 7.375% 09/01/2012 DD 08/26/02 A+ 3,537,630.00 .87 3,500,000.00 VIRGINIA ELEC & PWR 01 SER A .000 5.304 A3 108.406 3,487,680.00 1.20 927804ENO 5.750% 03/31/2006 DD 03/27/01 BBB+ 3,794,210.00 .93 16,249,520.00 US TREASURY INFLATION INDEX NT 3.817 3.068 AAA 110.000 14,322,493.87 5.67 9128272M3 3.375% 01/15/2007 DD 01/15/97 AAA 17,874,472.00 4.39 YLDANAL YIELD ANALYSIS PAGE t 13 OCSF07522202 2003/09/30 RUN DATE t 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME t 10.31.55 -c=ooc=vo-=�aa=ax=a=aa.-a=aaao=c=o=a=occvcn= PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 15,500,000.00 FEDERAL NATL MTG ASSN DEBS 5.967 6.602 AAA 107.918 16,154,410.00 5.31 31359MFHI 7.125% 02/15/2005 DD 02/14/00 AAA 16,727,317.90 4.11 1,198,327.69 FHLHC MULTICLASS MTG SER E3 A 6.316 3.832 AAA 104.043 1,199,604.37 .39 3133TCE95 VAR RT 09/15/2032 DD 12/01/97 AAA 1,246,776.08 .31 833,712.13 GNMA GTD REMIC TR 2000-9 FH 6.320 1.610 AAA 100.652 833,712.13 .26 3837H4NX9 VAR RT 02/16/2030 AAA 039,147.93 .21 9,534.53 GNMA POOL 00500917 6.369 5.757 AAA 104.223 9,050.35 .00 36210SPA0 6.000% 04/15/2029 DD 04/01/99 AAA 9,937.14 .00 40,584.40 GNMA POOL #0506636 6.369 5.757 AAA 104.223 38,523.47 .01 36210YY90 6.000% 04/15/2029 DD 04/01/99 AAA 42,298.14 .01 407,572.69 GNMA POOL #0503388 6.389 5.753 AAA 104.285 386,875.64 .13 36210VF55 6.000% 03/15/2029 DD 03/01/99 AAA 425,037.83 .10 12,734.52 GNMA POOL #0499153 6.389 5.753 AAA 104.285 12,087.84 .00 36210QQE5 6.000% 02/15/2029 DD 02/01/99 AAA 13,280.21 .00 474,521.43 GNHA POOL #0496461 6.390 5.753 AAA 104.285 450,424.63 .15 36210MQN4 6.000% 01/15/2029 DD O1/01/99 AAA 494,855.43 .12 127,477.80 GNMA POOL #0491103 6.390 5.753 AAA 104.285 121,004.33 .04 36210FRY4 6.000% 01/15/2029 DD O1/01/99 AAA 132,940.43 .03 13,369.44 GNMA POOL #0486720 6.390 5.753 AAA 104.205 12,690.53 .00 36210AVM6 6.000% 12/15/2028 DD 12/01/98 AAA 13,942.34 .00 27,232.78 GNMA POOL #0497343 6.390 5.753 AAA 104.285 25,849.87 .00 36210NP45 6.000% 12/15/2028 DD 12/01/98 AAA 28,399.75 .01 18,066.59 GNMA POOL #0469688 6.391 5.753 AAA 104.285 17,149.14 .00 36209EXRO 6.000% 11/15/2028 DD 11/01/98 AAA 18,840.77 .00 22,978.80 GNMA POOL 10467279 6.391 5.753 AAA 104.285 21,811.91 .00 36209CCQ7 6.000% 10/15/2028 DD 10/01/98 AAA 23,963.48 .01 42,651.16 GNMA POOL #0457814 6.391 5.753 AAA 104.285 40,485.27 .01 36208QSB3 6.000% 10/15/2028 DD 10/01/98 AAA 44,478.83 .01 456,573.97 GNMA POOL #0467286 6.391 5.753 AAA 104.285 433,388.57 .15 36209CCX2 6.000% 10/15/2028 DD 10/01/98 AAA 476,138.90 .12 YLDANAL YIELD ANALYSIS PAGE 14 OCSF07522202 2003/09/30 RUN DATE t 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME t 10.31.55 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 569,849.09 GNNA POOL #0465555 6.392 5.753 AAA 104.285 540,911.46 .18 36209AE48 6.000% 09/15/2028 DD 09/01/98 AAA 594,268.04 .15 15,410.30 GNMA POOL #0483452 6.392 5.753 AAA 104.285 14,627.75 .00 36209WBV3 6.000% 09/15/2028 DD 09/01/96 AAA 16,070.66 .00 507,061.96 GNMA POOL #0465546 6.392 5.753 AAA 104.285 481,312.72 .16 36209AET3 6.000% 08/15/2028 DD 08/01/98 AAA 528,790.38 .13 443,140.07 GNMA POOL #0468339 6.392 5.753 AAA 104.285 420,636.88 .14 36209DHQO 6.000% 08/15/2028 DD 08/01/98 AAA 462,129.33 .11 29,506.10 GNMA POOL #0438057 6.393 5.753 AAA 104.285 28,007.76 .00 36207PTN9 6.000% 05/15/2028 DD 05/01/98 AAA 30,770.48 .01 23,429.40 GNMA POOL #0468330 6.393 5.753 AAA 104.285 22,239.62 .00 36209DHF4 6.000% 05/15/2028 DD 05/01/98 AAA 24,433.39 .01 2,972,208.22 FHLMC MULTICLASS CTF SER 1620Z 6.499 5.636 AAA 106.458 2,816,068.28 1.00 3133T17A4 6.000% 11/15/2023 DD 11/01/93 AAA 3,164,153.43 .78 370,815.57 GNMA II POOL i080088M 6.705 4.292 AAA 101.926 378,927.17 .12 36225CC20 7.375% 06/20/2027 DD 06/01/97 AAA 377,958.22 .09 2,000,000.00 MARSH 6 MCLENNAN COS INC SR NT 6.717 6.393 A2 103.625 1,992,280.00 .65 57174BABB 6.625% 06/15/2004 DD 06/14/99 AA- 2,072,500.00 .51 3,000,000.00 FORD MTR CR CO GLOBAL LANDMARK 6.739 6.478 A3 103.421 2,995,080.00 .98 345397SJ3 6.700% 07/16/2004 DD 07/16/99 BBB 3,102,630.00 .76 2,500,000.00 COUNTRYWIDE HOME LNS INC NT 6.866 6.602 A3 103.750 2,498,400.00 .82 22237UABO 6.850% 06/15/2004 DD 06/24/99 A 2,593,750.00 .64 262,485.05 GNMA II POOL #0080023 6.992 5.469 AAA 102.860 266,832.46 .08 36225CAZ9 VAR RT 12/20/2026 DD 12/01/96 AAA 269,992.52 .07 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7.113 5.687 AAA 116.489 2,030,133.00 .77 31359MEY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,446,261.23 .60 1,000,000.00 FORD MOTOR CR CO NT 7.502 6.412 A3 105.265 965,170.00 .33 345397GV9 6.750% 05/15/2005 DD 05/24/93 BBB 1,052,650.00 .26 948,212.53 WMP/HUNTOON PAIGE #000-11150 7.684 7.161 AAA 104.741 927,618.55 .31 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 993,163.68 .24 YLDANAL YIELD ANALYSIS PAGE 15 OCSF07522202 2003/09/30 RUN DATE s 10/06/03 DISTRICT: LONG—TERM OPERATING RUN TIME : 10.31.55 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S—P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 3,000,000.00 PACIFICORP SECD MTN /TR 00115 7.709 6.902 A3 105.765 2,950,530.00 1.00 69512EEU5 7.300% 10/22/2004 DD 10/22/92 A 3,172,950.00 .78 1,600,000.00 ALLSTATE CORP SR NT 7.967 7.183 Al 109.640 1,594,032.00 .55 020002AL5 7.875% 05/01/2005 DD 05/01/00 A+ 1,754,240.00 .43 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .381 5.168 307,357,749.31 100.00 314,921,694.11 77.28 -------- ------- ----------------- --------- TOTAL .357 4.846 399,875,302.83 100.00 407,439,237.63 100.00 ----------------- --------- -............ ...... ---------.._.--........ ....._...... ......_... ... ._.._.__ _......... .... _.._ -- - —- —— Asset Detail Report ID: GL8013� Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base U.S.DOLLAR CASH&CASH EQUIVALENTS CASH -180,169.24 -180.169.24 -0.04% 0.00 PAYABLE FOR INVESTMENTS -24.865.625.00 -24,865.625.00 -5.87% 0.00 PURCHASED INTEREST RECEIVABLE 3,801,214.44 3,801,214.44 0.90% 0.00 RECEIVABLE FOR INVESTMENTS 202.819.53 202.819.53 0.050/6 0.00 SOLD FEDERAL HOME LN BK CONS DISC 99.7608 4,400,000.000 4,389,473.00 4,389,473.00 1.04% 0.00 NMAT 10/10/2003SEC ID: 313384MUO FEDERAL HOME LN BKS CONS 99.7472 12,000,000.000 11,969,666.67 11,969,666.67 2.82% 0.00 DISCMAT 10/15/2003SEC ID: 313384MZ9 FEDERAL HOME LN BK CONS DISC 99.7399 4.300.000.000 4,287,775.88 4,287,775.88 1.01% 0.00 NMAT 10/24/2003SEC ID: 313384NJ4 FEDERAL HOME LN BKS CONS 99.7358 1.500.000.000 1,496,037.71 1,496,037.71 0.35% 0.00 DISCMAT 10/29/2003SEC ID: 313384NPO FEDERAL HOME LN BK CONS DISC 99.4332 2,000,000.000 1,988,663.33 1,988,663.33 0.47% 0.00 NMAT 11/07/2003SEC ID: 313384NYI FEDERAL HOME LN BKS CONS 99.7885 3,100.000,000 3.093.442.53 3.093.442.53 0.73% 0.00 DISCMAT 11/19/2003SEC ID: 313384PL7 FEDERAL HOME LN BKS CINS 99.4625 4,400,000.000 4,376,248.47 4,376,248.47 1.03% 0.00 DISCMAT 03/17/2004SEC ID: 313384UK3 FEDERAL HOME LN BKS CONS 99.4616 6.700.000.000 6.663.926.08 6,663,926.08 1.57% 0.00 DISCMAT03/19/2004SEC ID: 313384UM9 FEDERAL HOME LN MTG CORP 99.7214 12,100,000.000 12.066.294.78 12.066.294.78 2.850% 0.00 DISCMAT 11/26/2003SEC ID: 313396PT4 FEDERAL HOME LN MTG CORP 99.4225 3,800,000.000 3.778.055.00 3,778,055.00 0.89% 0.00 DISCMAT 03/31/2004SEC ID: 313396UZ4 1 Workbench _...... _..__._....__......_._.__..�....._... _ _ _...—....— — --...._....__...---._._._...- ---........................_.............__......__......._..._..........._....._.._...__...._._._._.............._.....-__...............__-_._.._......_..._.....-_-..........._....__........._..._..._....._.._....- .....__._..__..... ......._.........._...------ -....._.. Report ID: GL8013 Asset Detail Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FEDERAL NATL MTG ASSN 99.7447 13,700,000.000 13,665,023.14 13,665,023.14 3.22% 0.00 DISCOUNT 4AT 10/15/2003SEC ID:313588MZ5 FEDERAL NATL MTG ASSN DISCMAT 99.4677 1,000,000.000 994.677.08 994.677.08 0.23% 0.00 11/12/2003SEC ID: 313588PDI FEDERAL NATL MTG ASSN 99.7485 13,600,000.000 13,564,090.11 13,564,090.11 3.20% 0.00 DISCOUNTMAT 11/19/2003SEC ID:313588PL3 FEDERAL NATL MTG ASSN DISCSEC 99.6370 200.000.000 199.274.00 199,274.00 0.05% 0.00 ID:313588QA6 FEDERAL NATL MTG ASSN 99.6627 800,000.000 797.301.63 797.301.63 0.190/0 0.00 DISCOUNTMAT 12/15/2003SEC ID:313588QN8 FEDERAL NATL MTG ASSN DISC 99.5530 200,000.000 199,106.00 199,106.00 0.05% 0.00 NTSEC ID: 313588TF2 FEDERAL NATL MTG ASSN 99.5530 9,500,000.000 9.457.535.00 9.457.535.00 2.23% 0.00 DISCOUNTMAT 02/19/2004SEC ID: 313588TG0 FEDERAL NATL MTG ASSN 99.5500 500.000.000 497.750.00 497,750.00 0.12% 0.00 DISCUNTMAT 02/23/2004SEC ID: 313588TL9 FEDERAL NATL MTG ASSN 99.5560 1,800,000.000 1,792,008.00 1,792,008.00 0.42% 0.00 DISCOUNTMAT 02/24/2004SEC ID:313588TM7 FEDERAL NATL MTG ASSN 99.4415 1.800.000,000 1.789.946.75 1,789,946.75 0.42% 0.00 DISCOUNTMAT 02/25/2004SEC ID:313588TN5 FEDERAL NATL MTG ASSN DISCSEC 99.4540 3,000,000.000 2,983,620.00 2,983,620.00 0.70% 0.00 ID: 313588UK9 GENERAL ELEC CAP 99.6624 600.000.000 597,974.33 597,974.33 0.14% 0.00 DISC I I/12/2003SEC ID: 36959JYC1 GENERAL ELEC CAP 99.6579 2,800,000.000 2,790,420.11 2,790,420.11 0.66% 0.00 DISC 12/10/2003SEC ID: 36959JZA4 U S TREASURY BILLDUE 99.5160 5,700,000.000 5,672,410.42 5,672,410.42 1.34% 0.00 02/12/2004 DD 08/14/2003SEC ID:912795PK1 2 Workbench _..._.._..._....._._........_............_...__.._ _...._._..._._......__.......-_....._.._..___..........._......._........._.._..---..__._......___......_......__................... Asset Detail Report ID: GLaols Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base WELLS FARGO BK NA INSTL C/D 1. 100.0000 1.400.000.000 1,400,000.00 1,400,000.00 0.33% 0.00 060% 10/23/2003 DD 09/23/03SEC ID:94975UXB8 DREYFUS TREASURY CASH 100.0000 318.711.730 318.711.73 318,711.73 0.080/0 0.00 MGMTSEC ID:996085247 TOTAL CASH&CASH EQUIVALENTS 111,218,711.730 89,787,671.48 89,787,671.48 21.18% 0.00 FIXED INCOME SECURITIES AIG SUNAMERICA GLOBAL REG S 5. 109.8670 752,000.000 826,199.84 826,199.84 0.190/0 0.00 850%08/01/2008 DD 08/08/OISEC ID:U00907AA0 COMMIT TO PUR FNMA SF MTG 5. 102.4375 23,000,000.000 23,331,250.00 23,560,625.00 5.56% 229.375.00 000% 10/01/2018 DD 10/0 1/03SEC ID:0 1 F0504A I COMMIT TO PUR FNMA SF MTG 6. 103.2031 1.500.000.000 1,534,375.00 1.548.046.80 0.37% 13.671.80 000% 10/01/2033 DD 10/01/03SEC ID:0IF0606A8 ALLSTATE CORP SR NT7.875% 109.6400 1,600,000.000 1,594,032.00 1,754,240.00 0.41% 160.208.00 05/01/2005 DD 05/01/OOSECID: 020002AL5 ASSOCIATES CORP NORTH AMERS. 102.5150 1,000,000.000 1,041,290.00 1,025,150.00 0.24% -16.140.00 800%04/20/2004 DD 04/20/99SEC ID:046003KA6 BEAR STEARNS MTN#TR 100.0620 900,000.000 899,406.00 900.558.00 0.21% 1,152.00 00459VAR RT 12/01/2003 DD 08/17/OISEC ID:073928VC4 BELL ATLANTIC-NEW JERSEY INC5. 101.4840 650,000.000 677.046.50 659,646.00 0.16% -17.400.50 875%02/01/2004 DD 02/01/94SEC ID:077858AA6 C1T GROUP INC NEW SR NT 5.500% 108.4060 1.500.000.000 1.527.135.00 1,626,090.00 0.38% 98.955.00 11/30/2007 DD 12/02/02SECID: 125581AD0 CITIGROUP INC GLOBAL SUB NTS. 107.3430 5,000,000.000 5,333,600.00 5.367.150.00 1.27% 33.550.00 625%08/27/2012 DD 08/26/02SEC ID: 172967BP5 COLGATE PALMOLIVE MTN TR 100.6710 300,000.000 308.808.00 302.013.00 0.07% -6,795.00 000585.270% 12/01/2003 DD I I/24/98SEC ID: 19416QCK4 COUNTRYWIDE HOME LNS INC NT6. 103.7500 2,500,000.000 2,498,400.00 2,593,750.00 0.61% 95,350.00 850%06/15/2004 DD 06/24/99SEC ID:22237UAB8 3 Workbench ...............__._....___......_.....-__....__.._.__.__........._..__.._._..._._...._ ._._......._.._...__........._..._...._.__......._._........ ......._..._._.... __...._........_....._....._ .._._...... _.__._.._ .._....................._......._._.....Y.__�...___.�.-._..___..._ € Asset Detail Report ID: GL8013 Base Currency: USD ! by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Status: FINAL ..........................._............................................................................................................................................................................................................................................................................................................................. .........................................................I.............. ..................... ..................................................................................._....... --......_........ __...__.. Net Unrealized Price Cost Market Value % of Gain/Loss Description BaSe Shares Par Base Base Total Base WMP/HUNTOON PAIGE#000- 104.7406 948.212.530 927,618.55 993,163.68 0.23% 65,545.13 111507.500% 12/01/2030 DD 10/21/99SEC ID:302998GE3 FHLMC GROUP#G4-0353 7.500% 102.3605 108.193.210 110,931.86 110.747.12 0.03% -184.74 10/01/2004 DD 03/01/99SEC ID: 3128DBMA2 FEDERAL HOME LN BK CONS BDS7. 107.7135 7,500,000.000 7,997,625.00 8,078,509.50 1.91% 80.884.50 125%02/15/2005 DD 02/08/OOSEC ID:3133MAUN7 FHLMC MULTICLASS MTG SER E3 104.0430 1.198.327.690 1,199,604.37 1,246,776.08 0.291/16 47,171.71 AVAR RT 08/15/2032 DD 12/01/97SEC ID: 3133TCE95 FHLMC MUL71CLASS CTF SER 106.4580 2.972.208.220 2.816.068.28 3,164,153.43 0.75% 348,085.15 1620Z6.0000/o 11/15/2023 DD 11/O1/93SEC ID:3133T17A4 FEDERAL FARM CR BKS CONS 101.3156 1,350,000.000 1,399,963.50 1,367,760.06 0.32% -32,203.44 SYSTE6.40%01/23/2004 DD O1/01/1999SEC ID:31331H6G7 FEDERAL FARM CR BKS CONS MTN 100.0324 550,000.000 565.229.50 550,178.42 0.130/0 -15.051.08 5.000% 10/02/2003 DD 10/02/98SEC ID:31331RC78 FEDERAL HOME LN MTG CORP DEB 101.3235 1.100.000.000 1.125.905.00 1,114,558.28 0.26% -11,346.72 3.750%04/15/2004 DD 04/15/02SEC ID: 3134A4PH1 FHLMC GROUP#78-6064 6.384% 104.0625 86.603.820 84,492.85 90,122.06 0.02% 5.629.21 O1/01/2028 DD 12/01/97SECID: 31348SWZ3 FEDERAL NATL MTG ASSN DEBS5. 101.4437 4.200.000.000 4.350.168.00 4,260,634.56 1.01% -89.533.44 125%02/13/2004 DD 02/08/99SEC ID:31359MEM 1 FEDERAL NATL MTG ASSN DEBS6. 116.4886 2.100.000.000 2,030,133.00 2,446,261.23 0.58% 416,128.23 625%09/15/2009 DD 09/01/99SEC ID:31359MEY5 FEDERAL NATL MTG ASSN DEBS7. 107.9182 15.500.000.000 16.154.410.00 16,727,317.90 3.95% 572,907.90 125%02/15/2005 DD 02/14/OOSEC ID: 31359MFHI FEDERAL NATL MTG ASSN DEBS5. 108.3632 11,350,000.000 11,521,271.50 12.299.225.47 2.90% 777,953.97 250%06/15/2006 DD 06/22/01SEC ID:31359MJX2 4 Workbench .........................._ .. ............. _ ............_._......................................_........ .... .......... --- ... _ _ -- ---- -_-__ Asset Detail Report ID: GL8013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0254510 5.000% 102.6445 897,867.520 924,803.55 921,611.90 0.22% -3.191.65 11/01/2017 DD 10/01/02SEC ID: 31371KVB4 FNMA POOL#0254631 5.000% 102.6445 187.647.800 193.277.24 192.610.20 0.050/0 -667.04 02/01/2018 DD 01/O1/03SECID: 31371KY47 FNMA POOL#0254760 5.000% 102.6445 168.398.700 173.450.66 172.852.05 0.04% -598.61 06/O1/2018 DD 05/01/03SEC ID: 31371K5V9 FNMA POOL#0254866 5.000% 102.6445 71.802.840 73.956.93 73,701.69 0.02% -255.24 09/01/2018 DD 08/01/03SECID- 31371LCB3 FNMA POOL#0323980 6.000% 104.7578 245,061.280 255.859.30 256,720.83 0.06% 861.53 04/01/2014 DD 09/01/99SECID: 31374T2M0 FNMA POOL#0357328 5.000% 102.5315 36,290.110 37,378.81 37,208.80 0.01% -170.01 01/01/2018 DD 01/01/03SEC ID: 31376J4M8 FNMA POOL#0456482 6.000% 104.8203 84,340.760 88.057.02 88.406.25 0.021/10 349.23 02/01/2014 DD 02/01/99SEC ID: 31381CCT2 FNMA POOL#0509649 6.0000/6 104.8203 241.995.390 252.658.31 253,660.32 0.06% 1,002.01 09/01/2014 DD 09/01/99SECID: 31383QEW0 FNMA POOL#0535451 6.000D/o 104.7578 194,825.100 203,409.58 204,094.51 0.05% 684.93 06/01/2015 DD 07/01/OOSEC ID: 31384VZQ8 FNMA POOL#0535672 6.000% 104.7578 4.267,050.990 4.455.067.93 4.470.069.17 1.050/0 15.001.24 01/01/2016 DD 12/01/OOSEC ID: 31384WCH 1 FNMA POOL#0545296 6.000% 104.5703 1,440.144.820 1.503,601.19 1,505.963.90 0.36% 2,362.71 11/01/2016 DD 10/01/01SECID: 31385HXZ0 FNMA POOL#0545580 6.000% 104.6328 119.286.930 124.543.01 124.813.27 0.03% 270.26 03/01/2017 DD 03/01/02SECID: 31385JCR7 FNMA POOL#0545998 6.000% 103.0387 230,876.560 240.111.62 237.892.14 0.06% -2,219.48 11/01/2032 DD 10/01/02SECID: 31385JRT7 5 Workbench --.........---- ........._....._.... ......------- --......... --._.._......._..._....._.. -...__..... __..._._....._....._..._......._...._._.__.._..__._._....._�... ---................. -- � ---- - -- Asset Detail Report m: Ol,S013 Base Currency: USD by Currency Alternate Base Currency: OCM-CONSOLIDATED-OCS000010000 9/30/2003 Exchange Rate: status. FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0555101 6.000% 104.5703 205.828.730 214.898.05 215.235.74 0.05% 337.69 10/01/2017 DD 11/0 1/02SEC ID: 31385WU23 FNMA POOL#0555285 6.000% 103.3945 914.332.110 950.905.40 945,369.39 0.22% -5.536.01 03/01/2033 DD 02/01/03SEC ID: 31385W2S7 FNMA POOL#0555363 5.000% 102.6445 403.365.360 415,466.32 414.032.48 0.100/0 -1.433.84 04/01/2018 DD 03/01/03SECID: 31385W5Y 1 FNMA POOL#0555528 6.000% 103.3945 902,305.290 938.397.51 932.934.31 0.22% -5.463.20 04/01/2033 DD 05/01/03SECID: 31385XD95 FNMA POOL#0555545 5.000% 102.6445 339,493.050 349,677.84 348,471.05 0.080/0 -1,206.79 06/01/2018 DD 05/01/03SECID: 31385XES2 FNMA POOL#0555640 6.000% 103.3945 905.629.540 941,854.72 936.371.41 0.22% -5,483.31 07/01/2033 DD 06/01/03SECID: 31385XHRI FNMA POOL#0576386 6.000% 104.0279 79.020.960 82.502.82 82.203.86 0.02% -298.96 05/01/2016 DD 05/01/OISECID: 31386XJ72 FNMA POOL#0576739 6.000% 104.6328 224.094.920 233,969.10 234,476.81 0.06% 507.71 04/01/2016 DD 04/01/OISECID: 31386XV86 FNMA POOL#0580888 6.000% 104.6328 264.776.770 276,443.49 277,043.37 0.07% 599.88 05/01/2016 DD 05/01/0 ISEC ID: 31387DJ91 FNMA POOL#0594002 6.0000/a 104.6328 210,597.710 219.877.17 220.354.30 0.050/0 477.13 07/01/2016 DD 07/01/01SEC ID: 31387T3K8 FNMA POOL#0597376 6.000% 104.5703 268.419.450 280.246.68 280,687.05 0.07% 440.37 09/01/2016 DD 08/01/0 1 SEC ID: 31387XT96 FNMA POOL#0605259 6.000% 104.5703 202,673.500 211.603.80 211,936.31 0.05% 332.51 09/01/2016 DD 09/01/OISECID: 31388HMG 1 FNMA POOL#0608366 6.000% 104.6328 151.460.240 158.133.95 158.477.11 0.04% 343.16 10/01/2016 DD 09/01/0 1 SEC ID: 31388LZ78 6 Workbench ............ .......... _ _ ---- -._........_._......_._........__.. ... ........._._...__.....__ —_ _ Re cy: E Asset Detail Base Cupnrr ED. Us o13` by Currency Alternate Base Currency: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Exchange Rate: Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0616734 6.000% 104.6328 172,684.620 180,293.53 180,684.77 0.04% 391.24 12/01/2016 DD 12/01/01SECID: 31388WEF9 FNMA POOL#0630812 6.000% 104.1110 216,112.720 225.635.18 224.997.07 0.05% -638.11 02/01/2017 DD 02/01/02SECID: 31389NYH2 FNMA POOL#0632376 6.000% 104.7203 971.978.160 1,014,805.96 1,017,858.54 0.24% 3.052.58 07/01/2017 DD 07/01/02SECID: 31389QQ50 FNMA POOL#0653116 6.000% 104.7203 557,031.830 581,576.05 583,325.46 0.14% 1,749.41 07/01/2017 DD 07/01/02SECID: 31390QSD8 FNMA POOL#0673280 6.000% 104.5703 242,834.960 253.534.87 253,933.27 0.06% 398.40 08/01/2017 DD 11/O1/02SECID: 31391P6R2 FNMA POOL#0681309 5.000% 102.6445 609.214.140 627.490.56 625,324.99 0.1511/0 -2,165.57 02/01/2018 DD 02/01/03SEC ID: 31391Y3S4 FNMA POOL#0681334 5.000% 102.6445 76,565.990 78.862.97 78.590.80 0.02% -272.17 02/01/2018 DD 01/01/03SEC ID: 31391Y4T1 FNMA POOL#0685665 5.000% 102.6445 38,763.510 39,926.42 39,788.62 0.01% -137.80 02/01/2018 DD 02/01/03SECID: 31400EW22 FNMA POOL#0686318 5.000% 102.6445 330,350.030 340.260.53 339.086.24 0.080/0 -1,174.29 03/01/2018 DD 03/01/03SEC ID: 31400FPB7 FNMA POOL#0688739 5.000% 102.6445 131,275.190 135.213.44 134.746.80 0.03% -466.64 06/01/2018 DD 06/01/03SECID: 31400JEL9 FNMA POOL#0693834 5.000% 102.6445 776,638.160 799,937.30 797,176.59 0.190/0 -2.760.71 03/01/2018 DD 03/01/03SECID: 3140OPY74 FNMA POOL#0695852 5.000% 102.6445 294.023.470 302,844.17 301,799.01 0.07% -1.045.16 05/01/2018 DD 05/01/03SECID: 31400SBVO FNMA POOL#0695889 5.000% 102.6445 877.339.710 903.659.90 900.541.22 0.21% -3,118.68 05/01/2018 DD 05/01/03SEC ID: 31400SC23 7 Workbench ..........--.......-----------�..._--- _ ----- - _... .._........ ....... ... ._._..._._.__ .._ ....._.. ` Asset Detail Report m: GLS013 1 Base Currency: USD f by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Status: FnvAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base FNMA POOL#0697026 5.000% 102.6445 28.882.460 29.748.94 29.646.27 0.01% -102.67 05/01/2018 DD 04/01/03SEC ID: 31400TLF2 FNMA POOL#0698939 6.000% 104.7453 138.264.690 144,356.98 144,825.78 0.03% 468.80 09/01/2017 DD 03/01/03SECID: 31400VPY2 FNMA POOL#0702210 5.000% 102.5568 294,427.330 303,260.15 301.955.29 0.07% -1.304.86 05/01/2018 DD 05/01/03SECID: 31401ADP9 FNMA POOL#0703195 6.000% 105.0078 84,890.020 88,630.49 89.141.15 0.02% 510.66 01/01/2017 DD 04/01/03SECID: 31401BGC3 FNMA POOL#0709148 5.000% 102.6445 312,665.020 322.044.97 320,933.54 0.08% -1.111.43 06/01/2018 DD 06/01/03SECID: 31401HZM7 FNMA POOL#0710235 5.000% 102.6445 834.646.060 859.685.45 856,718.53 0.20% -2,966.92 06/01/2018 DD 06/01/03SECID: 31401KBC8 FNMA POOL#0713344 5.000% 102.6445 27.298.340 28.117.29 28.020.25 0.01% -97.04 06/01/2018 DD 06/01/03SECID: 31401NP52 FNMA POOL#0720369 5.000% 102.5568 2.651.557.740 2,731.104.47 2.719,353.17 0.64% -11,751.30 06/01/2018 DD 06/01/03SEC ID: 31401WJN0 FNMA POOL#0721629 5.000% 102.8320 324.411.470 334.143.82 333,598.90 0.080/0 -544.92 07/01/2018 DD 06/01/03SECID: 31401XVW4 FORD MOTOR CR CO NT6.750% 105.2650 1.000,000.000 965.170.00 1.052,650.00 0.25% 87.480.00 05/15/2005 DD 05/24/93SECID: 345397GV9 FORD MTR CR CO GLOBAL 103.4210 3,000,000.000 2,995.080.00 3.102,630.00 0.73% 107,550.00 LANDMARK6.700%07/16/2004 DD 07/16/99SEC ID:345397SJ3 GNMA POOL#0596612 6.500% 105.2227 438,461.740 460,179.30 461,361.11 0.11% 1,181.81 09/15/2032 DD 09/0 1/02SEC ID: 36200BYH4 GNMA POOL#0569358 6.500% 104.7345 1,480,019.820 1,514,707.78 1.550,091.77 0.37% 35,383.99 04/15/2032 DD 04/01/02SEC ID: 3620099K3 8 Workbench ..--.......---..-_....__.....------.. -- --... -- -- ...------ - -.......__.......__ -- _........ -....-- - - ..._.__._...._..-....._....... ....__.... Asset Detail Report ID: GL8013 ' Base Currency: USD by Currency Alternate Base Currency: OCSD-CONSO MATED-OCS000010000 9/30/2003 Exchange Rate: Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description BBSe Shares Par Base Base Total Base GNMA POOL#0569685 6.5009/0 105.2539 64.629.320 67,830.49 68.024.89 0.02% 194.40 02/15/2032 DD 02/01/02SECID: 36200Q2S2 GNMA POOL#0570019 6.500% 105.2227 108.542.020 113,918.25 114,210.80 0.03% 292.55 07/15/2032 DD 07/01/02SECID: 3620ORG48 GNMA POOL#0574323 6.500% 105.2539 710.211.240 745.388.89 747.525.10 0.180/0 2.136.21 12/15/2031 DD 12/01/01SECID: 36200WAY7 GNMA POOL#0575364 6.5009/0 105.2539 70,464.870 73,955.08 74.167.03 0.02% 211.95 11/15/2031 DD 11/01/01SECID: 36200XFD6 GNMA POOL#0587117 6.500% 105.2227 27.102.450 28,444.87 28,517.92 0.01% 73.05 06/15/2032 DD 06/01/02SEC ID: 36201 MG22 GNMA POOL#0587439 6.500% 105.2227 80,817.680 84,820.68 85.038.51 0.02% 217.83 11/15/2032 DD 12/01/02SECID: 36201MS45 GNMA POOL#0421389 6.500% 105.5352 18.104.460 19.001.20 19,106.57 0.000/0 105.37 04/15/2026 DD 04/01/96SECID: 36206UC23 GNMA POOL#0438057 6.000% 104.2852 29.506.100 28.007.76 30.770.48 0.01% 2,762.72 05/15/2028 DD 05/01/98SECID: 36207PTN9 GNMA POOL#0449851 6.500% 104.7968 27.092.300 28.434.22 28.391.85 0.01% -42.37 01/15/2028 DD 01/01/98SECID: 36208FWLO GNMA POOL#0457814 6.000% 104.2852 42,651.160 40.485.27 44,478.83 0.01% 3,993.56 10/15/2028 DD 10/0 1/98SEC ID: 36208QSB3 GNMA POOL#0465546 6.000% 104.2852 507.061.960 481,312.72 528,790.38 0.12% 47,477.66 08/15/2028 DD 08/01/98SEC ID: 36209AET3 GNMA POOL#0465555 6.000% 104.2852 569.849.090 540,911.46 594,268.04 0.14% 53,356.58 09/15/2028 DD 09/01/98SECID: 36209AE48 GNMA POOL#0466845 6.500% 105.4727 89.231.280 93,651.02 94.114.60 0.02% 463.58 06/15/2028 DD 06/01/98SECID: 36209BTA6 9 Workbench .. ............._........................_..._..__...._...------*..........-_.._..... _...._..._... _.._......_.._._.._....._._...................._._......_..._............_._....- ........_......... ........_..............._..........._...._..._..._...- - ......_...._........... Asset Detail Report ID: GL8013 Base Currency: USD Alternate Base Currency: by Currency Exchange Rate: OCSD-CONSOLIDAMD-OCSG00010000 9/30/2003 Status: FINAL .........................................................................................................................................................................................................................................................................-.................................................................................................................................................................................................................................................._ Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL#0467279 6.0009/6 104.2852 22,978.800 21,811.91 23.963.48 0.01% 2.151.57 10/15/2028 DD 10/0 1/98SEC ID: 36209CCQ7 GNMA POOL#0467286 6.000% 104.2852 456.573.970 433,388.57 476,138.90 0.11% 42.750.33 10/15/2028 DD 10/0 1/98SEC ID: 36209CCX2 GNMA POOL#0468052 6.500% 105.4727 677.509.660 711.067.56 714.587.46 0.17% 3.519.90 07/15/2028 DD 07/01/98SECID: 36209C5M4 GNMA POOL#0468330 6.0W,16 104.2852 23.429.400 22.239.62 24,433.39 0.01% 2.193.77 05/15/2028 DD 05/01/98SECID: 36209DHF4 GNMA POOL#0468339 6.000% 104.2852 443.140.070 420.636.88 462,129.33 0.11% 41,492.45 08/15/2028 DD 08/01/98SECID: 36209DHQO GNMA POOL#0469688 6.000% 104.2852 18.066.590 17.149.14 18.840.77 0.000/0 1,691.63 11/15/2028 DD 11/01/98SECID: 36209EXR8 GNMA POOL#0476041 6.500% 105.4727 262.214.030 274.792.11 276.564.11 0.07% 1.772.00 06/15/2028 DD 06/01/98SEC ID: 36209MZE7 GNMA POOL#0478626 6.500% 105.3789 217.313.680 227,737.95 229,002.79 0.050/0 1.264.84 01/15/2029 DD O1/O1/99SECID: 36209QVT9 GNMA POOL#0480598 6.500% 105.3789 249,614.150 261,587.84 263,040.67 0.06% 1,452.83 10/15/2028 DD 10/0 1/98SEC ID: 36209S3F6 GNMA POOL#0483452 6.000% 104.2852 15.410.300 14.627.75 16.070.66 0.000/0 1.442.91 09/15/2028 DD 09/01/98SECID: 36209WBV3 GNMA POOL#0485527 6.500% 105.2539 558,777.460 586,454.41 588.135.12 0.14% 1.680.71 06/15/2031 DD 06/01/OI SEC ID: 36209YLGI GNMA POOL#0485610 6.500% 105.2539 633.585.270 664,967.54 666.873.27 0.16% 1,905.73 07/15/2031 DD 07/01/0 1 SEC ID: 36209YN38 GNMA POOL#0485682 6.500% 105.2539 133,203.960 139.801.72 140,202.38 0.030/0 400.66 08/15/2031 DD 08/01/01SECID: 36209YRB6 10 Worlcbenckf 3._...__.___.___..__._ ..._.__._...----.......__.......__......___.___._.......____._.-.._..-._. _�. Report ID: GL8013- Asset Detail Base Currency: USD by Currency Alternate Base Currency: 3 Exchange Rate: OCSD-CONSOLIDATED-OCS000010000 9/30/2003 Status: pTNA, Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL#0485703 6.500% 105.2539 140.291.530 147.240.35 147,662.32 0.03% 421.97 08/15/2031 DD 08/01/0ISECID: 36209YRY6 GNMA POOL#0486720 6.000% 104.2852 13,369.440 12,690.53 13.942.34 0.000/0 1,251.81 12/15/2028 DD 12/01/98SECID: 36210AVM6 GNMA POOL#0491 103 6.000% 104.2852 127.477.800 121,004.33 132,940.43 0.03% 11.936.10 01/15/2029 DD 0 1/0 1/99SEC ID: 36210FRY4 GNMA POOL#0496461 6.000% 104.2852 474,521.430 450.424.63 494,855.43 0.12% 44.430.80 01/15/2029 DD 01/01/99SECID: 3621 OMQN4 GNMA POOL#0497343 6.000% 104.2852 27,232.780 25,849.87 28.399.75 0.01% 2.549.88 12/15/2028 DD 12/01/98SEC ID: 3621ONP45 GNMA POOL#0499153 6.000% 104.2852 12.734.520 12.087.84 13,280.21 0.000/0 1.192.37 02/15/2029 DD 02/01/99SECID: 36210QQE5 GNMA POOL#0500917 6.000% 104.2227 9.534.530 9.050.35 9.937.14 0.000/0 886.79 04/15/2029 DD 04/01/99SEC ID: 36210SPAO GNMA POOL#0503388 6.000% 104.2852 407.572.690 386.875.64 425.037.83 0.100/0 38,162.19 03/15/2029 DD 03/01/99SECID: 36210VF55 GNMA POOL#0506636 6.000% 104.2227 40.584.400 38.523.47 42.298.14 0.01% 3,774.67 04/15/2029 DD 04/01/99SEC ID: 36210YY90 GNMA POOL#0512235 6.500D/o 105.3164 16,446.650 17.261.27 17,321.02 0.000/0 59.75 11/15/2029 DD 11/01/99SEC ID: 36211GBC6 GNMA POOL#0514326 6.500% 105.3789 244,244.120 255,960.20 257,381.79 0.06% 1,421.59 07/15/2029 DD 07/01/99SEC ID: 36211JLF2 GNMA POOL#0530053 6.5000/10 104.6817 67.280.200 70.612.68 70,430.04 0.02% -182.64 04/15/2031 DD 04/01/0ISECID: 36212CZS3 GNMA POOL#0530290 6.500% 105.2539 69.192.130 72.511.20 72.827.42 0.02% 316.22 03/15/2031 DD 04/01/01SECID: 36212DC31 11 Workbench _._........____......_---.__._._._.......__.._...__.__.....___._.___........_........._...._....__...._.__.........__. ._._ .__. ______--... ..._._ _-.. ___..__. _..--____. Report ID: GL8013 Asset Detail Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Status: FINAL .............................................._................_....................................._.._........................_............. ._._..._...__. ..........._._._........................_......_._._.........._..........._..._........_..----.._...._.._._..........._._ ...................._....._.._......._.._........._............._........................._.........._.._.........__. .. Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base GNMA POOL#0537885 6.500% 105.2539 135.383.080 142,088.77 142.495.99 0.03% 407.22 02/15/2031 DD 02/01/01 SEC ID: 36212MRE 1 GNMA POOL#0547512 6.500% 105.2539 16,205.480 17.008.16 17.056.90 0.000/0 48.74 04/15/2031 DD 04/01/0 1 SEC ID: 36212YGV9 GNMA POOL#0547715 6.500% 105.2539 128,829.580 135.009.37 135.598.17 0.03% 588.80 02/15/2031 DD 02/01/01SECID: 36212YN82 GNMA POOL#0552322 6.500% 105.2539 91,658.210 96,198.16 96,473.85 0.02% 275.69 01/15/2032 DD O1/01/02SECID: 36213ESK3 GNMA POOL#0552466 6.500% 104.7345 727.214.830 763,234.69 761.645.02 0.18% -1,589.67 03/15/2032 DD 03/01/02SECID: 36213EW36 GNMA POOL#0552659 6.500% 105.2227 555,614.680 583,134.96 584,632.55 0.14% 1,497.59 07/15/2032 DD 07/01/02SEC ID: 36213E5U6 GNMA POOL#0561017 6.500% 105.2539 569.397.170 597.600.13 599,312.78 0.14% 1.712.65 07/15/2031 DD 07/01/01SEC ID: 36213QG29 GNMA II POOL#0080023VAR RT 102.8602 262,485.050 266,832.46 269.992.52 0.06% 3.160.06 12/20/2026 DD 12/01/96SECID: 36225CAZ9 GNMA II POOL#080088M 7.375% 101.9262 370.815.570 378,927.17 377.958.22 0.090/0 -968.95 06/20/2027 DD 06/01/97SEC ID: 36225CC20 GNMA II POOL#0080395VAR RT 101.5236 306,886.750 304.105.59 311.562.32 0.07% 7.456.73 04/20/2030 DD 04/01/00SECID: 36225CNM4 GNMA 11 POOL#080408X 6.500% 101.4693 2,778,689.780 2.750.468.71 2,819,515.68 0.67% 69.046.97 05/20/2030 DD 05/01/00SEC ID: 36225CN28 GTE NORTH INC DEB SER A6.0009/b 101.3590 3.000.000.000 3,063,750.00 3,040,770.00 0.72% -22,980.00 01/15/2004 DD O1/15/94SECID: 362337AD9 GENERAL ELEC CAP MTN#TR 100.0620 1,000,000.000 1,001,089.00 1,000,620.00 0.24% -469.00 00545VAR RT 05/20/2004 DD 05/20/02SEC ID:36962GYS7 12 Wbrkbenc(i -..__._..__..__...._......-..........-............................._......__....... ._._..._._..._._.... ----------- .--........_.................. _.__..._._........_ -.........- _.......__.-... _ - -........ - --......_ ------ Asset Detail Report ID: GL3013' Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOZMATED-OCSG00010000 9/30/2003 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base GENERAL ELEC CAP MTN#TR 105.0460 5,000,000.000 5,203,500.00 5,252,300.00 1.24% 48.800.00 00575 5.4500/16 01/15/2013 DD 12/06/02SEC ID:36962GZY3 GENERAL MTRS ACCEP CORP SR NT 105.7340 3,000,000.000 3.064.350.00 3,172,020.00 0.75% 107,670.00 6.125%08/28/2007 DD O8/29/02SEC ID:370425SD3 GOLDMAN SACHS GROUP INC SR NT 103.4530 3,000,000.000 3.030.030.00 3.103.590.00 0.73% 73.560.00 4.125%01/15/2008 DD 01/13/03SEC ID:38141GCSI GNMA GTD REMIC TR 2000-9 100.6520 833,712.130 833,712.13 839,147.93 0.209/6 5.435.80 FHVAR RT 02/16/2030SEC ID: 3837H4NX9 HOUSEHOLD FIN CORP NT 6.375% 111.1870 1.635.000.000 1.772.820.00 1.817.907.45 0.43% 45.087.45 10/15/2011 DD 10/23/01SECID: 441812JW5 JP MORGAN CHASE&CO SUB NTS. 106.8120 3,000,000.000 3.127.260.00 3,204,360.00 0.76% 77,100.00 750%01/02/2013 DD 11/25/02SEC ID:46625HAT7 LEHMAN BROS HLDGS INC6.625% 102.6710 1,000,000.000 1.045.590.00 1.026.710.00 0.24% -18.880.00 04/01/2004 DD 03/26/99SEC ID: 524908BZ2 MARSH&MCLENNAN COS INC SR 103.6250 2,000,000.000 1,992,280.00 2,072,500.00 0.49% 80,220.00 NT6.625%06/15/2004 DD 06/14/99SEC ID: 571748AB8 MORGAN STANLEY NT 3.625% 100.9210 3,200,000.000 3,195,648.00 3,229,472.00 0.76% 33.824.00 04/01/2008 DD 03/06/03SEC ID: 617446HW2 NATIONAL RURAL UTILS COOP FIN 117.2650 3.000.000.000 3.465.480.00 3.517.950.00 0.83% 52.470.00 7.250%03/01/2012 DD 03/07/02SEC ID:637432CU7 PACIFICORP SECD MTN#TR 00115 105.7650 3,000,000,000 2,950,530.00 3,172,950.00 0.75% 222,420.00 7.300% 10/22/2004 DD 10/22/92SEC ID:69512EEU5 PAINE WEBBER GROUP INC NTS6. 100.8430 500.000.000 519,405.00 504.215.00 0.12% -15,190.00 45016 12/01/2003 DD 12/01/98SEC ID:695629CE3 PHILIP MORRIS COS INC NTS 7. 102.2340 5,000,000.000 5,263,000.00 5,111,700.00 1.21% -151,300.00 500%04/01/2004 DD 04/01/97SEC ID:718154CH8 13 Workbench Asset Detail Report ID: G1 s013 Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Status: FINAL Net Unrealized Price Cost Market Value % of Gain/Loss Description Base Shares Par Base Base Total Base SBA GTD DEV PARTN 2001-20C 16. 109.6400 3.497.276.280 3,497,276.28 3.834.413.71 0.900/0 337,137.43 340%03/01/2021SECID: 83162CW0 SBA GTD PARTN CTFS SBIC-PS 01 108.5650 2,504,229.760 2,504,229.76 2.718.717.04 0.64% 214,487.28 6.6409/o 02/10/2011 DD 02/21/01SEC ID:831641DD4 UNITED AIRLS PASSTHRU 01-1 C 6. 15.2500 1,600,000.000 1,600,000.00 244.000.00 0.06% -1.356,000.00 831%03/01/2010 DD 08/22/01SEC ID:909317BC2 US BANCORP MTN#TR 001196. 102.8280 1.000.000.000 1,046,310.00 1,028,280.00 0.24% -18.030.00 000%05/15/2004 DD 05/10/99SEC ID:91159HEY2 U S TREASURY BONDS11.875% 101.3440 5,800,000.000 6.251.984.38 5,877,952.00 1.39% -374.032.38 11/15/2003 DD 10/05/83SECID: 91281ODGO U S TREASURY NOTES06.250% 113.4375 20,000,000.000 22.620.312.50 22,687,500.00 5.35% 67,187.50 02/15/2007 DD 02/15/97SECID: 912827WO US TREASURY INFLATION INDEX 110.0000 16,249,520.000 14.322.493.87 17,874,472.00 4.22% 3.551.978.13 NT 3.375%01/15/2007 DD 01/15/97SEC ID:9128272M3 US TREASURY INFLATION INDEX NT 112.2813 3,414,810.000 3,725,779.05 3,834,191.35 0.900/0 108,412.30 3.625%01/15/2008 DD 0 1/15/98SEC ID:9128273T7 US TREASURY INFLATION INDEX NT 114.2815 14.576.900.000 16.209.968.79 16,658,699.97 3.930/0 448.731.18 3.875%01/15/2009 DD 01/15/99SEC ID:9128274Y5 U S TREASURY NOTES05.750% 108.8440 57,100,000.000 62,782,901.47 62,149,924.00 14.66% -632.977.47 11/15/2005 DD 11/15/00SECID: 9128276N7 U S TREASURY NT 3.250D/o 102.1200 12,000,000.000 11,870,156.25 12,254,400.00 2.89% 384,243.75 08/15/2008 DD 08/15/03SEC ID: 912828BG4 VERIZON GLOBAL FDG CORP 117.9210 3,000,000.000 3.530.490.00 3,537,630.00 0.83% 7.140.00 GLOBAL 7.375%09/01/2012 DD 08/26/02SEC ID:92344GAT3 VIRGINIA ELEC&PWR 01 SER A5. 108.4060 3,500,000.000 3,487,680.00 3,794,210.00 0.900/0 306.530.00 750%03/31/2006 DD 03/27/01SEC ID:927804ENO 14 lVorkbeneb ..._......... - ..-..- -._......_._.....- _.......__..._.....___......—.....__... __......----•----......__._.—......----•- -- Report ID: GL8013 Asset Detail Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: i OCSD-CONSOLIDATED-OCSG00010000 9/30/2003 Status: FINAL Net Unrealized Price Cost Market Value %of Gain/Loss Description Base Shares Par Base Base Total Base WELLS FARGO&CO SUBNT6.125% 100.3750 450.000.000 467,496.00 451,687.50 0.11% -15.808.50 11/01/2003 DD 11/01/93SEC ID: 949740BY9 TOTAL FIRED INCOME SECURITIES 313,345,660.920 327,158,034.19 334,091,088.93 78.82% 6,933,054.74 TOTAL ASSETS U.S. DOLLAR 424,564,372.650 416,945,705.67 423,878,760.41 100.00% 6,933,054.74 TOTAL ASSETS-BASE: 424,564,372.650 416,945,705.67 423,878,760.41 100.000/0 6,933,054.74 15 Workbench - - - _. _....... _ .._ -- - ._..._ _._...-- _.. ..--- ...._..._... ---- ................_.._......... .._._..._.........................-: _.. - Transaction Detail Report ID: EQ/B009 Reportedby Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSC100010000 9/2/2003 - 9/30/2003 status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base PURCHASES CASH 86 CASH EQUIVALENTS U.S.DOLLAR B FEDERAL HOME LN BKS CONS DISC MAT 9/26/2003 99.8432 1,500,000,000 1,497,648.75 -1,497,648.75 0.00 11/19/2003SEC ID:313384PL7BROKER: 9/26/2003 CREDIT SUISSE FIRST BOSTON CORP,N 9/26/2003 YOCSF07511102: LIQUID OPER-PIMCO B FEDERAL HOME LN BKS CINS DISC MAT 9/18/2003 99.4595 3,400,000.000 3,381,623.47 -3,381,623.47 0.00 03/17/2004SEC ID:313384UK3BROKER:JP 9/18/2003 MORGAN CHASE BK/HSBCI,NEW 9/18/2003 YORKOCSF07522202: LONG TERM OPER- B 1%AL HOME LN BKS CINS DISC MAT 9/18/2003 99.4625 1,000,000.000 994,625.00 -994,625.00 0.00 03/17/2004SEC ID:313384UK3BROKER:JP 9/19/2003 MORGAN CHASE BK/HSBCI,NEW 9/18/2003 YORKOCSF07511102:LIQUID OPER-PIMCO B FEDERAL HOME LN BKS CONS DISC MAT 9/19/2003 99.4616 6,700,000.000 6,663,926.08 -6,663,926.08 0.00 03/19/2004SEC ID:313384UM9BROKER: 9/19/2003 UBS SECURITIES LLC,NEW 9/19/2003 YORKOCSF07522202:LONG TERM OPER- B W 9AL HOME LN MTG CORP DISC MAT 9/24/2003 99.4225 3,800,000.000 3,778,055.00 -3,778,055.00 0.00 03/31/2004SEC ID:313396UZ4BROKER: 9/24/2003 GOLDMAN SACHS&CO,NYOCSF07511102: 9/24/2003 LIQUID OPER-PIMCO B FEDERAL NATL MTG ASSN DISC NTSEC ID: 9/22/2003 99.5530 200,000.000 199,106.00 -199,106.00 0.00 313588TF2BROKER:MERRILL LYNCH 9/22/2003 PIERCE FENNER SMITH INC 9/22/2003 NYOCSF07522202:LONG TERM OPER-PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 9/23/2003 99.5530 9,500,000.000 9,457,535.00 -9,457,535.00 0.00 02/19/2004SEC ID:313588TGOBROKER: 9/23/2003 LEHMAN GOVT SECS INC,NYOCSF07522202:9/23/2003 LONG TERM OPER-PIMCO B FEDERAL NATL MTG ASSN DISCUNT MAT 9/26/2003 99.5500 500,000.000 497,750.00 -497,750.00 0.00 02/23/2004SEC ID:313588TL9BROKER: 9/26/2003 GOLDMAN SACHS&CO,NYOCSF07522202: 9/26/2003 LONG TERM OPER-PIMCO B FEDERAL NATL MTG ASSN DISCOUNT MAT 9/29/2003 99.5560 1,800,000.000 1,792,008.00 -1,792,008.00 0.00 02/24/2004SEC ID:313588TM7BROKER: 9/29/2003 LEHMAN GOVT SECS INC,NYOCSF07522202:9/29/2003 LONG TERM OPER-PIMCO 1 Workbench .................... ............._ ....... Transaction Detail Report 11): EWB009 Reportedby Transaction Category Base Currency: USD OCSD-CONSOLiDATED-OCS000010000 9/2/2003 - 9/30/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B FEDERAL NATL MTG ASSN DISCOUNT MAT 9/2/2003 99.4476 1,200,000.000 1,193,370.67 -1,193,370.67 0.00 02/25/2004SEC ID:313588TN5BROKER: 9/2/2003 UBS SECURITIES LLC,NEW 9/2/2003 YORKOCSF07522202: LONG TERM OPER- B FR&9AL NATL MTG ASSN DISCSEC ID: 9/17/2003 99.4540 3,000,000.000 2,983,620.00 -2,983,620.00 0.00 313588UK9BROKER: GOLDMAN SACHS& 9/17/2003 CO,NYOCSF07522202: LONG TERM OPER- 9/17/2003 PIMCO B WELLS FARGO BK NA INSTL C/D 1.060% 9/23/2003 100.0000 1,400,000.000 1,400,000.00 -1,400,000.00 0.00 10/23/2003 DD 09/23/03SECID: 9/23/2003 94975UXB8BROKER:BANC OF AMERICA 9/23/2003 SEC LLC,SAN FRANCISCOOCSF07511102: B bhqYwRM-F*1%00.970%09/05/2003 9/4/2003 100.0000 3,200,000.000 3,200,000.00 -3,200.000.00 0.00 DD 09/04/03SEC ID: 99409WO58BROKER: 9/4/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/4/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.900%09/08/2003 9/5/2003 100.0000 3,200,000.000 3,200,000.00 -3,200,000.00 0.00 DD 09/05/03SEC ID: 99409X734BROKER: 9/5/2003 LEHMAN GOVT SECS INC, NYOCSF07511102:9/5/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.970%09/09/2003 9/8/2003 100.0000 3,200,000.000 3,200,000.00 -3,200,000.00 0.00 DD 09/08/03SEC ID:99409Y906BROKER: 9/8/2003 LEHMAN GOVT SECS INC, NYOCSF07511102:9/8/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.930%09/10/2003 9/9/2003 100.0000 3,200,000.000 3,200,000.00 -3,200,000.00 0.00 DD 09/09/03SEC ID:9941OA327BROKER: 9/9/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/9/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.930%09/11/2003 9/10/2003 100.0000 3,200,000.000 3,200,000.00 -3,200,000.00 0.00 DD 09/10/03SEC ID:9941OB739BROKER: 9/10/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/10/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.990%09/12/2003 9/11/2003 100.0000 3,200,000.000 3,200,000.00 -3,200,000.00 0.00 DD 09/11/03SEC ID:99410D065BROKER: 9/11/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/11/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 01.000%09/15/2003 9/12/2003 100.0000 3,200,000.000 3,200,000.00 -3,200,000.00 0.00 DD 09/12/03SEC ID: 994 1 OE337BROKER: 9/12/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/12/2003 LIQUID OPER-PIMCO 2 Workbench Transaction Detail Report M: EWB009 Reportedby Transaction Category Base Currency: USD OCSD•CONSOLIDATED-OCSG00010000 9/2/2003 - 9/30/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B LEHMAN CAT 2 REPO 01.100%09/16/2003 9/15/2003 100.0000 3,900,000.000 3,900,000.00 -3,900,000.00 0.00 DD 09/15/03SEC ID:9941OF730BROKER: 9/15/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/15/2003 LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 00.990% 9/16/2003 100.0000 3,900,000.000 3,900,000.00 -3,900,000.00 0.00 09/17/2003 DD 09/16/03SECID: 9/16/2003 9941OF953BROKER: CREDIT SUISSE FIRST 9/16/2003 BOSTON CORP,N YOCSF07511102: LIQUID B ERRA"9ff 2 REPO 00.930%09/18/2003 9/17/2003 100.0000 2,900,000.000 2,900,000.00 -2,900,000.00 0.00 DD 09/17/03SEC ID: 9941OJ385BROKER: 9/17/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/17/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.950%09/19/2003 9/18/2003 100.0000 2,900,000.000 2,900,000.00 -2,900,000.00 0.00 DD 09/18/03SEC ID: 9941OK879BROKER: 9/18/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/18/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.920%09/22/2003 9/19/2003 100.0000 4,400,000.000 4,400,000.00 -4,400,000.00 0.00 DD 09/19/03SEC ID:994IOM255BROKER: 9/19/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/19/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.960%09/23/2003 9/22/2003 100.0000 4,300,000.000 4,300,000.00 -4,300,000.00 0.00 DD 09/22/03SEC ID: 99410N600BROKER: 9/22/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/22/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.960%09/24/2003 9/23/2003 100.0000 5,300,000.000 5,300,000.00 -5,300,000.00 0.00 DD 09/23/03SEC ID: 99410QO17BROKER: 9/23/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/23/2003 LIQUID OPER-PIMCO B LEHMAN CAT 2 REPO 00.980%09/25/2003 9/24/2003 100.0000 1,500,000.000 1,500,000.00 -1,500,000.00 0.00 DD 09/24/03SEC ID: 9941OR387BROKER: 9/24/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/24/2003 LIQUID OPER-PIMCO B CREDIT SUISSE FB REPO 01.000% 9/25/2003 100.0000 1,500,000.000 1,500,000.00 -1,500,000.00 0.00 09/26/2003 DD 09/25/03SECID: 9/25/2003 9941ORS77BROKER: CREDIT SUISSE FIRST 9/25/2003 BOSTON CORP,N YOCSF07511102: LIQUID B SK01IRWEASURY CASH MGMTSEC ID: 9/3/2003 1.0000 55,303.460 55,303.46 -55,303.46 0.00 9960852470CSF07522202: LONG TERM 9/3/2003 OPER-PIMCO 9/3/2003 3 Workbench ...........-........... ....... ......... Transaction Detail Report ID: EWB009 Reportedby Transaction Category Base Currency: USD OCSD-CONSOLMATED-OCSCi00010000 9/2/2003 9/30/2003 Status: FINAL ........... .................... .......... .......... ------- ------- ....... Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMTSEC ID: 9/4/2003 1.0000 979,979.310 979,979.31 -979,979.31 0.00 9960852470CSF07511102: LIQUID OPER- 9/4/2003 PIMCO 9/4/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/5/2003 1.0000 86.220 86.22 -86.22 0.00 9960852470CSF07511102: LIQUID OPER- 9/5/2003 PIMCO 9/5/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/10/2003 1.0000 3,090,000.000 3,090,000.00 -3,090,000,00 0.00 9960852470CSF07522202:LONG TERM 9/10/2003 OPER-PIMCO 9/10/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/11/2003 1.0000 173,871.760 173,871.76 -173,871.76 0.00 9960852470CSF07511102: LIQUID OPER- 9/11/2003 PIMCO 9/11/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/12/2003 1.0000 88.000 88.00 -88.00 0.00 9960852470CSF07511102: LIQUID OPER- 9/12/2003 PIMCO 9/12/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/15/2003 1.0000 1,489,709.340 1,489,709.34 -1,489,709.34 0.00 9960852470CSF07522202: LONG TERM 9/15/2003 OPER-PIMCO 9/15/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/16/2003 1.0000 119.170 119.17 -119.17 0.00 9960852470CSF07511102: LIQUID OPER- 9/16/2003 PIMCO 9/16/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/16/2003 1.0000 3,768,968.830 3,768,968.83 -3,768,968.83 0.00 9960852470CSF07522202: LONG TERM 9/16/2003 OPER-PIMCO 9/16/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/18/2003 1.0000 74.920 74.92 -74.92 0.00 9960852470CSF07511102: LIQUID OPER- 9/18/2003 PIMCO 9/18/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/19/2003 1.0000 4,305,451.530 4,305,451.53 -4,305,451.53 0.00 9960852470CSF07511102: LIQUID OPER- 9/19/2003 PIMCO 9/19/2003 4 Workbench Transaction Detail Report m: EWB009 Reportedby Transaction Category Base Currency: USD OCSD-CONSOLIDA TED-OCSGDGO 10000 9/2/2003 - 9/30/2003 status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B DREYFUS TREASURY CASH MGMTSEC ID: 9/23/2003 1.0000 242,465.000 242,465.00 -242,465.00 0.00 9960852470CSF07522202: LONG TERM 9/23/2003 OPER-PIMCO 9/23/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/23/2003 1.0000 114.670 114.67 -114.67 0.00 9960852470CSF07511102: LIQUID OPER- 9/23/2003 PIMCO 9/23/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/24/2003 1.0000 22,086,330 22,086.33 -22,086.33 0.00 9960852470CSF07511102: LIQUID OPER- 9/24/2003 PIMCO 9/24/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/25/2003 1.0000 40.830 40.83 -40.83 0.00 9960852470CSF07511102: LIQUID OPER- 9/25/2003 PIMCO 9/25/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/25/2003 1.0000 1,972,474.150 1,972,474.15 -1,972,474.15 0.00 9960852470CSF07522202: LONGTERM 9/25/2003 OPER-PIMCO 9/25/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/26/2003 1.0000 2,392.920 2,392.92 -2,392.92 0.00 9960852470CSF07511102: LIQUID OPER- 9/26/2003 PIMCO 9/26/2003 B DREYFUS TREASURY CASH MGMTSEC ID: 9/30/2003 1.0000 107,324.350 107,324.35 -107,324.35 0.00 9960852470CSF07522202:LONG TERM 9/30/2003 OPER-PIMCO 9/30/2003 TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR: 103,210,550.790 103,049,818.76 -103,049,818.76 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: 103,210,550.790 103,049,818.76 -103,049,818.76 0.00 FIXED INCOME SECURITIES U.S.DOLLAR B COMMIT TO PUR FNMA SF MTG 5.000% 9/12/2003 101.6875 3,000,000.000 3,050,625.00 -3,050,625.00 0.00 10/01/2018 DD 10/0 1/03SEC ID: 10/20/2003 01FO504AIBROKER: BEAR STEARNS&CO 9/12/2003 INC,NYOCSF07522202: LONG TERM OPER- PIMCO 5 Workbench Transaction Detail Report ID: EWBOO9 Reportedby Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCSG00010000 9/2/2003 - 9/30/2003 status: FINAL Trade Date _ _........ .........._ ._ _. ..._._. Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base B COMMIT TO PUR FNMA SF MTG 5.000% 9/15/2003 101.3750 2,000,000.000 2,027,500.00 -2,027,500.00 0.00 10/01/2018 DD 10/01/03SECID: 10/20/2003 01170504A113ROKER: LEHMAN GOVT SECS 9/15/2003 INC,NYOCSF07522202: LONG TERM OPER- B UMIT TO PUR FNMA SF MTG 5.000% 9/15/2003 101.4063 18,000,000.000 18,253,125.00 -18,253,125.00 0.00 10/01/2018 DD 10/01/03SECID: 10/20/2003 O1F0504A1BROKER: CREDIT SUISSE FIRST 9/15/2003 BOSTON CORP,N YOCSF07522202:LONG B Z&Wg-?i*CIMASFMTG 6.000% 9/11/2003 102.3125 1,000,000.000 1,023,125.00 -1,023,125.00 0.00 10/01/2033 DD 10/01/03SECID: 10/15/2003 0 1 F0606A8BROKER: CREDIT SUISSE FIRST 9/11/2003 BOSTON CORP,N YOCSF07522202: LONG B F&WW LAMA SF MTG 6.000% 9/11/2003 102.2500 500,000.000 511,250.00 -511,250.00 0.00 10/01/2033 DD 10/01/03SECID: 10/15/2003 0 1 F0606A8BROKER: CITIGROUPGBL 9/11/2003 MKTS/SALOMON,NEW YORKOCSF07522202: B b KEiG A2M&PIWn?#TR 00545 VAR RT 9/17/2003 100.1089 1,000,000.000 1,001,089.00 -1,001,089.00 0.00 05/20/2004 DD 05/20/02SECID: g 17 2003 36962GYS7BROKER:BANC OFAMERICA SEC9/17/2003 LLC, SAN FRANCISCOOCSF07511102: LIQUID IB 8IWEC CAP MTN#TR 00545 VAR RT 9/17/2003 100.1089 0.000 0.00 -956.67 0.00 05/20/2004 DD 05/20/02SECID: 9/17/2003 36962GYS7BROKER: BANC OF AMERICA SEC 9/17/2003 LLC,SAN FRANCISCOOCSF07511102: LIQUID OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR 25,500,000.000 25,866,714.00 -25,867,670.67 0.00 TOTAL FIXED INCOME SECURITIES BASE: 25,500,000.000 25,866,714.00 -25,867,670.67 0.00 TOTAL PURCHASES BASE: 128,710,550.790 128,916,532.76 -128,917,489.43 0.00 SALES CASH&CASH EQUIVALENTS U.S.DOLLAR S LEHMAN CAT 2 REPO 00.970%09/05/2003 9/5/2003 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 DD 09/04/03SEC ID:99409W058BROKER: 9/5/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/5/2003 LIQUID OPER-PIMCO 6 Workbench' Transaction Detail Report ID: EWB009 Reportedby Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCS000010000 9/2/2003 - 9/30/2003 Status: FINAL __-......._- -.--- ____---. ___..... -• -__----.. Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS LEHMAN CAT 2 REPO 00.970%09/05/2003 9/5/2003 100.0000 0.000 0.00 86.22 0.00 DD 09/04/03SEC ID:99409WO58BROKER: 9/5/2003 LEHMAN GOUT SECS INC,NYOCSF07511102:9/5/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.900%09/08/2003 9/8/2003 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 DD 09/05/03SEC ID:99409X734BROKER: 9/8/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/8/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.900%09/08/2003 9/8/2003 100.0000 0.000 0.00 240.00 0.00 DD 09/05/03SEC ID: 99409X734BROKER: 9/8/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/8/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.970%09/09/2003 9/9/2003 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 DD 09/08/03SEC ID:99409Y906BROKER: 9/9/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/9/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.970%09/09/2003 9/9/2003 100.0000 0.000 0.00 86.22 0.00 DD 09/08/03SEC ID:99409Y906BROKER: 9/9/2003 LEHMAN GOVT SECS INC, NYOCSF07511102:9/9/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.930%09/10/2003 9/10/2003 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 DD 09/09/03SEC ID:9941OA327BROKER: 9/10/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/10/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.930%09/10/2003 9/10/2003 100.0000 0.000 0.00 82.67 0.00 DD 09/09/03SEC ID:9941OA327BROKER: 9/10/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/10/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.930%09/11/2003 9/11/2003 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 DD 09/10/03SEC ID:9941OB739BROKER: 9/11/2003 LEHMAN GOVT SECS INC, NYOCSF07511102:9/11/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.930%09/11/2003 9/11/2003 100.0000 0.000 0.00 82.67 0.00 DD 09/10/03SEC ID:9941OB739BROKER: 9/11/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/11/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.990%09/12/2003 9/12/2003 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 DD 09/11/03SEC ID: 99410DO65BROKER: 9/12/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/12/2003 LIQUID OPER-PIMCO 7 Workbench Transaction Detail Report ID: EWB009 Reportedby Transaction Category Base Currency: USD 0CSD-00NS0LIDA7ED-OCS000010000 9/2/2003 - 9/30/2003 status:FINAL Trade Date Tran Settle Date Price Cost Amount Net (fain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS LEHMAN CAT 2 REPO 00.990%09/12/2003 9/12/2003 100.0000 0.000 0.00 88.00 0.00 DD 09/11/03SEC ID:99410D065BROKER: 9/12/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/12/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 01.000%09/15/2003 9/15/2003 100.0000 -3,200,000.000 -3,200,000.00 3,200,000.00 0.00 DD 09/12/03SEC ID: 99410E337BROKER: 9/15/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/15/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.000%09/15/2003 9/15/2003 100.0000 0.000 0.00 266.67 0.00 DD 09/12/03SEC ID: 99410E337BROKER: 9/15/2003 LEHMAN GOVT SECS INC, NYOCSF07511102:9/15/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 01.100%09/16/2003 9/16/2003 100.0000 -3,900,000.000 -3,900,000.00 3,900,000.00 0.00 DD 09/15/03SEC ID:9941OF730BROKER: 9/16/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/16/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.100%09/16/2003 9/16/2003 100.0000 0.000 0.00 119.17 0.00 DD 09/15/03SEC ID: 9941OF730BROKER: 9/16/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/16/2003 LIQUID OPER-PIMCO S CREDIT SUISSE FB REPO 00.990% 9/17/2003 100.0000 -3,900,000.000 -3,900,000.00 3,900,000.00 0.00 09/17/2003 DD 09/16/03SECID: 9/17/2003 994 1 OF953BROKER:CREDIT SUISSE FIRST 9/17/2003 BOSTON CORP,N YOCSF07511102: LIQUID IS efNIFWASE FB REPO 00.990% 9/17/2003 100.0000 0.000 0.00 107.25 0.00 09/17/2003 DD 09/16/03SECID: 9/17/2003 994 1 OF953BROKER: CREDIT SUISSE FIRST 9/17/2003 BOSTON CORP,N YOCSF07511102: LIQUID S 29H09MR 2 REPO 00.930%09/18/2003 9/18/2003 100.0000 -2,900,000.000 -2,900,000.00 2,900,000.00 0.00 DD 09/17/03SEC ID: 994 1 OJ385BROKER: 9/18/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/18/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.930%09/18/2003 9/18/2003 100.0000 0.000 0.00 74.92 0.00 DD 09/17/03SEC ID: 9941OJ385BROKER: 9/18/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/18/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.950%09/19/2003 9/19/2003 100.0000 -2,900,000.000 -2,900,000.00 2,900,000.00 0.00 DD 09/18/03SEC ID: 9941OK879BROKER: 9/19/2003 LEHMAN GOVT SECS INC, NYOCSF07511102:9/19/2003 LIQUID OPER-PIMCO 8 Workbench Transaction DetailPteport m; EWs009 Reportedby Transaction Category Base Currency: USD 0C9D6C0NS0LWATBD-OCS000010000 9/2/2003 - 9/30/2003 status: FINAL, Trade Date _....._._..__.._�._... Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS LEHMAN CAT 2 REPO 00.950%09/19/2003 9/19/2003 100.0000 0.000 0.00 76.53 0.00 DD 09/18/03SEC ID:9941OK879BROKER: 9/19/2003 LEHMAN GOUT SECS INC,NYOCSF07511102:9/19/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.920%09/22/2003 9/22/2003 100.0000 -4,400,000.000 -4,400,000.00 4,400,000.00 0.00 DD 09/19/03SEC ID: 9941OM255BROKER: 9/22/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/22/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.920%09/22/2003 9/22/2003 100.0000 0.000 0.00 337.33 0.00 DD 09/19/03SEC ID: 9941OM255BROKER: 9/22/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/22/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.960%09/23/2003 9/23/2003 100.0000 -4,300,000.000 -4,300,000.00 4,300,000.00 0.00 DD 09/22/03SEC ID: 9941ON600BROKER: 9/23/2003 LEHMAN GOVT SECS INC, NYOCSF07511102:9/23/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.960%09/23/2003 9/23/2003 100.0000 0.000 0.00 114.67 0.00 DD 09/22/03SEC ID: 9941ON600BROKER: 9/23/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/23/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.960%09/24/2003 9/24/2003 100.0000 -5,300,000,000 -5,300,000.00 5,300,000.00 0.00 DD 09/23/03SEC ID:994100017BROKER: 9/24/2003 LEHMAN GOVT SECS INC, NYOCSF07511102:9/24/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.960%09/24/2003 9/24/2003 100.0000 0.000 0.00 141.33 0.00 DD 09/23/03SEC ID:99410QO17BROKER: 9/24/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/24/2003 LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 00.980%09/25/2003 9/25/2003 100.0000 -1,500,000.000 -1,500,000.00 1,500,000.00 0.00 DD 09/24/03SEC ID:9941OR387BROKER: 9/25/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/25/2003 LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 00.980%09/25/2003 9/25/2003 100.0000 0.000 0.00 40.83 0.00 DD 09/24/03SEC ID:9941OR387BROKER: 9/25/2003 LEHMAN GOVT SECS INC,NYOCSF07511102:9/25/2003 LIQUID OPER-PIMCO S CREDIT SUISSE FB REPO 01.000% 9/26/2003 100.0000 -1,500,000.000 -1,500,000.00 1,500,000.00 0.00 09/26/2003 DD 09/25/03SECID: 9/26/2003 9941OR577BROKER: CREDIT SUISSE FIRST 9/26/2003 BOSTON CORP,N YOCSF07511102: LIQUID OPER-PIMCO 9 Workbench ......-............... ..._.. Transaction Detail Report ID: EWB009 Reportedby Transaction Category Base Currency: USD OCSD-CORSOLIDATED-OCS000010000 9/2/2003 - 9/30/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IS CREDIT SUISSE FB REPO 01.000% 9/26/2003 100.0000 0.000 0.00 41.67 0.00 09/26/2003 DD 09/25/03SECID: 9/26/2003 9941OR577BROKER: CREDIT SUISSE FIRST 9/26/2003 BOSTON CORP,N YOCSF07511102:LIQUID S SREMNWEASURY CASH MGMTSEC ID: 9/2/2003 1.0000 -561,059.270 -561,059.27 561,059.27 0.00 9960852470CSF07522202: LONG TERM 9/2/2003 OPER-PIMCO 9/2/2003 S DREYFUS TREASURY CASH MGMTSEC ID: 9/8/2003 1.0000 -980,065.530 -980,065.53 980,065.53 0.00 9960852470CSF07511102: LIQUID OPER- 9/8/2003 PIMCO 9/8/2003 S DREYFUS TREASURY CASH MGMTSEC ID: 9/11/2003 1.0000 -3,097,081.790 -3,097,081.79 3,097,081.79 0.00 9960852470CSF07522202:LONG TERM 9/11/2003 OPER-PIMCO 9/11/2003 S DREYFUS TREASURY CASH MGMTSEC ID: 9/15/2003 1.0000 -26,513.330 -26,513.33 26,513.33 0.00 9960852470CSF07511102: LIQUID OPER- 9/15/2003 PIMCO 9/15/2003 S DREYFUS TREASURY CASH MGMTSEC ID: 9/17/2003 1.0000 -1,938.420 -11938.42 1,938.42 0.00 9960852470CSF07511102: LIQUID OPER- 9/17/2003 PIMCO 9/17/2003 S DREYFUS TREASURY CASH MGMTSEC ID: 9/17/2003 1.0000 -2,982,161.300 -2,982,161.30 2,982,161.30 0.00 9960852470CSF07522202: LONG TERM 9/17/2003 OPER-PIMCO 9/17/2003 S DREYFUS TREASURY CASH MGMTSEC ID: 9/18/2003 1.0000 -2,954,865.650 -2,954,865.65 2,954,865.65 0.00 9960852470CSF07522202:LONG TERM 9/18/2003 OPER-PIMCO 9/18/2003 S DREYFUS TREASURY CASH MGMTSEC ID: 9/19/2003 1.0000 -61,008.030 -61,008.03 61,008.03 0.00 9960852470CSF07522202: LONG TERM 9/19/2003 OPER-PIMCO 9/19/2003 S DREYFUS TREASURY CASH MGMTSEC ID: 9/22/2003 1.0000 -4,298,535.170 -4,298,535.17 4,298,535.17 0.00 9960852470CSF07511102: LIQUID OPER- 9/22/2003 PIMCO 9/22/2003 10 Wbrkbench- t puag)laoA I I I 00WId-H2dO WN31 EOOZ/T T/6 0"01:ZOZZZSLOASOOA N'dHOO NO.LSOH £OOZ/ST/6 'I'SMI3 2SSIfIS, 1=10 :HZXOHEI I 69090d T 0 =ai 03SE0/10/60 QQ££OZ/T0/60 SZ'T8L'OT SZ'90b'9Z0'T 00'5;Z9'910'T- 000'000'000'1- 90b9'ZOI £OOZ/11/6 %000'9 O,LW AS VW%MaL§Ad9rRffi S C006/91/6 ONO'I :ZOZZZSLOASOOA N'dHOO NO.LSOG EOOZ/SI/6 'I'SNIJ 3SSInS,LIU2RIO 2I2XOZIHti6bOSOAIO :QI 33SE0/T0/60 QQ 8IOZ/10/60 OL'E86'9Z£ 00'9L£'60£'8T O£'16£'Z86'LI- 000'000'000'8T- 88IL'T01 COWS /6 %OOO'S O.LW AS VWN3 8nd 011I813M S EOOZ/S I/6 -X3dO WN211 ONO'I :ZOZZZSLO.3SOOAN'ONI £OOZ/8i/6 SOBS,LAOO NVWH3'T :HHXO2IHfi6bOSOAIO :GI 33SEO/I0/60 QQ 8IOZ/10/60 S9'b8L'SE £T'SZ8'EEO'Z Sb'Eb0`866'1 000'000'000'Z- V169'I0I E006/SI/6 %000'S O,LW AS VWNd Sfld O,L,Llb$W S £OOZ/ZI/6 -H3dO WN2119NO'I:ZOZZZSLOASOOAN'ONI EOOZ/8I/6 00 V SNHV3.IS 2TV2U :H9XOHElV6bOS0dT0 :GI 09S£0/I0/60 QQ 8TOZ/10/60 Lb'686'E9 691, O'T90'E FZ'S90'L66'Z- 000'000'000'E- Z9£0'ZOI £OOZ/ZI/6 %000'S O,LW AS VWN,d Hnd O.L,LIWWOO S Hv'I'Ioa s n s3I,LIrIn3as awo3mi amn3 00'0 T£'SB6'6SZ'OL 9T'ZS6`LSZ'OL- 09T'ZS6'LSZ'OL- :3SVE S,LN3'IVAM63 HSVO V HSVO'IV.LO.L 00'0 TE'8E6`68Z'OL 9T'ZS6'LSZ'OL- 091'ZS6`LSZ`OL- :HV'I'IOa 'S'n S.LN3'IVAMOR HSVO 98 HSVO'IV.LO.L £OOZ/0£/6 00WId EOOZ/0£/6 -2I3dO(Ilnbl'I :ZOT T i SLOdSOOLbZS80966 00'0 01'5;65;`T 0I'S6S'i- 00U9691- 0000'1 EOOZ/OE/6 :QI O3SLW`JW HSVO ANnSVaHLSndA9HCI S EOOZ/6Z/6 OOWId-S2dO £006/6Z/6 WZISI,ONOI :ZOZZZSL09SOOLi7ZS80966 00'0 00'800'Z6L'I 00'800'Z6L'I- 000'800'Z6L'I- 0000'1 EOOZ/6Z/6 :QI02SIWDW HSVO kNf1SV9N.LSfl3A32IQ S EOOZ/9Z/6 00WId-d2dO £OOZ/9Z/6 WZIZJ,ONO I :ZOZZZSLOdSOOLbZS80966 00'0 b9'SO£'16t, b9'S0E`16b- Ob9'SO£'16b- 0000'1 £OOZ/9Z/6 :ui cros .WJW Hsvo ksnsva I.L snAA32IQ S £OOZ/ZZ/6 O3WId-H9dO £OOZ/ZZ/6 WX21ONOI :ZOZZZSLOdSOOLbZ980966 00'0 £6'b18'6 £6•*,T8'6- 0£6'b18'6- 0000'1 £OOZ/ZZ/6 :QI 096LWOW HSVO A2If1SV32I.LSnAA2HG S asug asua aqua sud/sems asBg o4va popodoH uol4dlsasaa adAl ssaI/ulu) :tax ;unouty ;s03 O3TJd a;ua 09;89 UW L a;uQ apui'L ----- .._.. ._._.... -._._..... - .__........_...._._.-. .... . .... ._._._...._......_. . __._... . _. 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Transaction Detail Report In: EWB009 Reportedby Transaction Category Base Currency: USD OWD6CONSOLWATED-OCS000010000 9/2/2003 - 9/30/2003 Status: FINAL __...... _ .._._..........._-_.............._...._.. ._._...... .. _.._....__ ........_.. .....................-- —..._.�_..--...._-.. Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base TOTAL FIXED INCOME SECURITIES U.S. DOLLAR -24,668,550.150 -24,688,417.16 25,117,977.97 428,000.87 TOTAL FIXED INCOME SECURITIES BASE: -24,668,550.150 -24,688,417.16 25,117,977.97 428,000.87 TOTAL SALES BASE: -94,926,502.310 -94,946,369.32 95,377,916.28 428,000.87 PRINCIPAL PAYMENTS FIXED INCOME SECURITIES U.S.DOLLAR PD GNMA GTD REMIC TR 2000-9 FH VAR RT 9/16/2003 100.0000 -37,407.830 -37,407.83 37,407.83 0.00 02/16/2030SECID: 9/16/2003 3837H4NX90CSF07522202:LONG TERM 9/16/2003 OPER-PIMCO MATURITIES CASH 8s CASH EQUIVALENTS U.S.DOLLAR MT FEDERAL AGRIC MTG CORP DISCOUN 9/23/2003 100.0000 -9,700,000.000 -9,692,078.33 9,692,078.33 0.00 0.000%09/23/2003 DD 09/23/02SEC ID: 9/23/2003 31315KMB30CSF07522202: LONG TERM 9/23/2003 OPER-PIMCO MT FEDERAL AGRIC MTG CORP DISCOUN 9/23/2003 100.0000 -2,400,000.000 -2,398,040.00 2,398,040.00 0.00 0.000%09/23/2003 DD 09/23/02SECID: 9/23/2003 31315KMB30CSF07511102: LIQUID OPER- 9/23/2003 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/19/2003 100.0000 -2,400,000.000 -2,398,368.00 2,398,368.00 0.00 09/19/2003SECID: 9/19/2003 313384LX50CSF07511102: LIQUID OPER- 9/19/2003 PIMCO MT FEDERAL HOME LN BK CONS DISC N MAT 9/19/2003 100.0000 -9,700,000.000 -9,693,404.00 9,693,404.00 0.00 09/19/2003SECID: 9/19/2003 313384LX50CSF07522202: LONG TERM 9/19/2003 OPER-PIMCO MT U S TREASURY BILL 0.000%09/04/2003 DD 9/4/2003 100.0000 -3,200,000.000 -3,199,504.00 3,199,504.00 0.00 03/06/03SEC ID:912795NL10CSF07511102:9/4/2003 LIQUID OPER-PIMCO 9/4/2003 TOTAL CASH 8s CASH EQUIVALENTS U.S.DOLLAR _27,400,000.000 -27,381,394.33 27,381,394.33 0.00 13 Workbench ........... ...... ....... Transaction Detail Report ID: EWB009 Reportedby Transaction Category Base Currency: USD OWD6CONSOLIDATED-OCSG00010000 9/2/2003 - 9/30/2003 Status: FINAL .......................................I................. .............................. ...... ................. ...............I.................. . ...... ..................... ------- ...... Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date— Base Shares/Par Base Base Base TOTAL CASH&CASH EQUIVALENTS BASE: -27,400,000.000 -27,381,394.33 27,381,394.33 0.00 FIXED INCOME SECURITIES U.S.DOLLAR MT PROCTER&GAMBLE CO NTS 5.250% 9/15/2003 100.0000 -656,000.000 -672,278.56 656,000.00 -16,278.56 09/15/2003 DD 09/28/98SEC ID: 9/15/2003 742718BK40CSF)07511102: LIQUID OPER- 9/15/2003 PIMCO TOTAL MATURITIES BASE: -28,056,000.000 -28,053,672.89 28,037,394.33 -16,278.56 CORPORATE ACTIONS FIXED INCOME SECURITIES U.S.DOLLAR CAL FHLMC MULTICLASS CTF T1 1 A6 6.500% 9/25/2003 100.0000 -134,761.080 -134,820.91 134,761.08 -59.83 09/25/2018SEC ID: 9/25/2003 3133TDPV20CSF07522202:LONG TERM 9/25/2003 OPER-PIMCO INTEREST CASH&CASH EQUIVALENTS U.S.DOLLAR IT FEDERAL AGRIC MTG CORP DISCOUN 9/23/2003 0.000 7,921.67 7,921.67 0.00 0.000%09/23/2003 DD 09/23/02SEC ID: 9/23/2003 31315KMB30CSF07522202:LONG TERM 9/23/2003 OPER-PIMCO IT FEDERAL AGRIC MTG,CORP DISCOUN 9/23/2003 0.000 1,960.00 1,960.00 0.00 0.000%09/23/2003 DD 09/23/02SEC ID: 9/23/2003 31315KMB30CSF07511102: LIQUID OPER- 9/23/2003 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/19/2003 2,400,000.000 1,632.00 1,632.00 0.00 09/19/2003SEC ID: 9/19/2003 313384LXSOCSF07511102:LIQUID OPER- 9/19/2003 PIMCO IT FEDERAL HOME LN BK CONS DISC N MAT 9/19/2003 9,700,000.000 6,596.00 6,596.00 0.00 09/19/2003SEC ID: 9/19/2003 313384LX50CSF07522202:LONG TERM 9/19/2003 OPER-PIMCO IT U S TREASURY BILL 0.000%09/04/2003 DD 9/4/2003 3,200,000.000 496.00 496.00 0.00 03/06/03SEC ID:912795NL10CSF07511102:9/4/2003 LIQUID OPER-PIMCO 9/4/2003 14 Workbench Transaction Detail Report ID: EWB009 Reportedby Transaction Category Base Currencq: USD OCSD-CONSOLIDATED-OCSG00010000 9/2/2003 - 9/30/2003 status:FINAL Trade Date --.................- Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base CD SHORT TERM FDS INT ADJ NET OF 9/30/2003 0.000 14.71 14.71 0.00 OVERNIGHT INTERESTSEC ID: 9/30/2003 990000PJ40CSF07522202: LONG TERM 9/30/2003 OPER-PIMCO CW SHORT TERM FDS INT ADJ NET OF 9/30/2003 0.000 -1,595.10 -1,595.10 0.00 OVERNIGHT INTERESTSEC ID: 9/30/2003 990000PJ40CSF07511102:LIQUID OPER- 9/30/2003 PIMCO IT DREYFUS TREASURY CASH MGMTSEC ID: 9/3/2003 0.000 655.46 655.46 0.00 9960852470CSF07522202: LONG TERM 9/1/2003 OPER-PIMCO 9/3/2003 IT DREYFUS TREASURY CASH MGMTSEC ID: 9/3/2003 0.000 332.27 332.27 0.00 9960852470CSF07511102: LIQUID OPER- 9/1/2003 PIMCO 9/3/2003 IT BSDT-LATE MONEY DEPOSIT ACCTSEC ID: 9/2/2003 0.000 0.22 0.22 0.00 9960870940CSF07522202:LONG TERM 9/1/2003 OPER-PIMCO 9/2/2003 TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR: 15,300,000.000 18,013.23 18,013.23 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: 15,300,000.000 18,013.23 18,013.23 0.00 FIXED INCOME SECURITIES U.S.DOLLAR IT WMP/HUNTOON PAIGE 4000-11150 7.500% 9/30/2003 753.590 5,931.04 5,931.04 0.00 12/01/2030 DD 10/21/99SECID: 9/1/2003 302998GE30CSF07522202: LONG TERM 9/30/2003 OPER-PIMCO IT FHLMC GROUP#G4-0353 7.500% 9/15/2003 3,159.450 695.95 695.95 0.00 10/01/2004 DD 03/01/99SECID: 9/1/2003 3128DBMA20CSF07522202: LONG TERM 9/15/2003 OPER-PIMCO IT FHLMC MULTICLASS MTG SER E3 A VAR RT 9/15/2003 35,440.500 4,311.85 4,311.85 0.00 08/15/2032 DD 12/01/97SECID: 8/1/2003 3133TCE950CSF07522202:LONG TERM 9/15/2003 OPER-PIMCO 15 Workbench tpuagxloM 91 £OOZ/SZ/6 OOWId-HSdO EOOZ/i/6 M31 JN07 :ZOZZZSL03SOOUOOTBETE QIO3S66/I0/ZO QQ tTOZ/TO/ZO 00'0 0£'L6t, 0£'L6b OOO'OZT'ST EOOZ/SZ/6 %OOO'9 ZSt,99tO#'100d VWNd ILI EOOZ/9Z/6 OOWId-HZdO EOOZ/T/6 W2IS,L JN0'I •ZOZZZSL03SOOSWbf'9LEIE QIOSSEO/TO/TO QQ 81OZ/10/10 00'0 tL'b19,9 bL*tT9'9 OTO'ZO9'b EOOZ/9Z/6 %000'S 8ZELSEO#'IOOd VWN3 11 £OOZ/SZ/6 OOWId-HSdO £OOZ/T/6 MS'L ONO'I�ZOZZZSLOMOOMU'LET£ QI OSS66/10/60 QQ bTOZ/TO/tO 00'0 ZL'SEE'T ZL'SEE'T OZ8'ZSO'ZZ EOOZ/SZ/6 %000'9 086EZE0#'IOOd VWN.d 11 EOOZ/SZ/6 OOWId-212dO EOOZ/T/6 M131 JN01I :ZOZZZSLO,gSOOESO'ITLETS QIOSSEO/TO/80 QQ 8TOZ/10/60 00'0 99'OOE 99,00E 091'9S£ £OOZ/SZ/6 0/6000'9 998bSZO#'I00d VWN,d 11 EOOZ/SZ/6 OOWId-HSdO £OOZ/T/6 WN21L ONO'I :ZOZZZSLOdSO06ASXTLEI£ (ITOSSEO/TO/S0 QQ 8TOZ/10/90 00'0 t7T'6TL VT'6TL Ot�O'S6T't £OOZ/SZ/6 %000'S 09LbSZO#'I00d VWN.d J.I £OOZ/S T/6 OOWId-2I2dO £OOZ/Si/6 WN3.L OMO'I :ZOZZZ9LOJSOOSA3W6SETE QIO3S66/TO/60 QQ 60OZ/91/60 00'0 OS'Z99'69 09'Z99'69 000'000'OOT'Z EOOZ/91/6 %GZ9'9SGSQNSSV'J.LW'I'Mlivmz(isa LI £OOZ/81/6 OOWId-HSdO EOOZ/T/S W1121 ON0'T :ZOZZZSLOdSOOEZMS8tb£T£ OI03SL6/TO/ZT QQ SZOZ/TO/TO 00'0 L9'ZSZ L9'Z8Z 0£0'9LT'T £OOZ/8T/6 %b8E'9 t,909-8L#df1OaO OW'IHd .LI £OOZ/ST/6 OOWId-S2dO £OOZ/i/6 W931 JNOT:ZOZZZSL03SOObVLT.LE£TE GIOSS£6/TO/TT QQ EZOZ/ST/IT 00'0 OT'L8L't7l OT'L8L'tbl 001*LSL'i7T £OOZ/91/6 9/6000'9 ZOZ9T Z13S 1LO SSV'IOIL'InW OW'IH3 .LT £OOZ/SZ/6 OOW Id-HSdO £OOZ/I/6 W 2'L JNO'[ :ZOZZZSLOdSOOZAdQ,LE£TE (I1 OSS8IOZ/SZ/60 00'0 96'6ZL 96'6ZL 000'0 £OOZ/SZ/6 %005;'9 9V 111 dJO SSV'IOIL'IfIW OW1H9 .LI £OOZ/ST/6 OOWId-N3dO £OOZ/T/8 Mad,ONO'I :ZOZUSLOASOOS6SO,L£EIC QI OSSL6/10/ZT QQ Z£OZ/91/80 00'0 Sb'8 917'8 OSti'8 £OOZ/ST/6 .LH NVA V ES E21S rO.LW SSV'IOIL'IfIW OW'IH9 .II asug asug aqua — —s8d/90313gS ---aqua — a;uQ papodag uopdposaa ad1, ssori/UTND lam ;unomV 4800 aaud a418Q ap;aS uu=y a;sQ opwiy ,TVMl3 '8"'8's EOOZ/0E/6 - 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£OOZ/SI/6 OOWId-2I3dO £OOZ/I/6 W alONO'I:ZOZZZSLOASOOZZOWTOZ9£ QI03SZO/I0/90 QQ Z£OZ/SI/90 00'0 9b'£9i 9b'£91 090'bL0'£ £OOZ/91/6 %009'9 LITL8S0#'IOOd VWNO ,LI £OOZ/ST/6 OOWId-2T3dO £OOZ/I/6 WSS�ONO'I:ZOZZZSL03SOO9GdX00Z9£ QIOSSIO/TO/ii as i£OZ/SI/ii 00'0 OZ'L£b OZ'LEti OTZ'6bZ'0I £OOZ/SI/6 %OOS'9 b9£SLSO#100d HWNJ 11 £OOZ/ST/6 00WId-2ISdO £OOZ/i/6 Waal JNOI:ZOZZZSLOdSOOLAHMOOZ9£ QIOSSTO/TO/Zi QQ i£OZ/ST/ZI 00'0 L9'60I'b L9'6Ei'b OLO'S£0'b8 £OOZ/91/6 %009'9 £Z£i7LSO#'100d VWNO .LI £OOZ/ZZ/6 OOWId-USdO £OOZ/i/6 Mail ONO'I•ZOZZZSL03SO08b SOM9£ GIOSSZO/i0/LO QQ Z£OZ/SIILO 00'0 Z£'£99 Z£'£99 Ob8'916'£T EOOZ/ZZ/6 %009'9 61004900100d VWNO ,LI £OOZ/S T/6 OOWId-2I2dO £OOZ/I/6 Waal`JNO'I :ZOZZZSLOdSOOZSZa00Z9£ :QIOSSZO/IO/ZO OQ Z£OZ/SI/ZO 00'0 LO'88£ LO'88£ OTS'bI0'L £OOZ/ST/6 %OOS'9 9896990#'I00d HWNJ ILI £OOZ/SI/6 OOWId-2ISdO £OOZ/I/6 WSS'I'ONO'I :ZOZZZSLOdSO0£}Iaa00Z9£ GIOSSZO/IO/b0 QQ Z£OZ/91/170 00'0 £T'I06'8 6I'T06'S 09Z'S9Z'£9T £OOZ/91/6 %009'9 8S£6990#100cl HWNO ILI £OOZ/SI/6 O3WId-S3dO £OOZ/T/6 WSMOMO'I :ZOZZZSLOdSOOWAS00Z9£ QIOSSZO/TO/60 QQ Z£OZ/SI/60 00'0 b6'TL6'Z b6'1L6'Z Ob9'£OZ`OTI £OOZ/91/6 %009'9 Z199690#'IOOd HWNO LI £OOZ/97,/6 OOWId-2ISdO £OOZ/I/6 Waal ONO'I :ZOZZZSMISOOS3H IIObi£ GIOSS£0/I0/90 QQ 8i0Z/10/90 00'0 bb'LZS'£ btb'LZS'£ OZT'Ob6'II £OOZ/SZ/6 %000'2 S£ZOTLO#'IOOd HWN.d ILI EOOZ/SZ/6 OOWId-HZdO £OOZ/T/6 WN31ON01I •ZOZZZSL03SO0£OJSTObi£ GIOSS£0/IO/b0 QQ LIOZ/10/t0 00'0 £9'8Zb £9'8Zb 098'S£8 £OOZ/SZ/6 %000'9 961£OLO#'100d HWN.d ILI £OOZ/SZ/6 OOWId-USdO £OOZ/T/6 WSS,LONO'I :ZOZZZSLOASOOZAdA00bI£ GIOSSEO/TO/£0 QQ LIOZ/10/60 00'0 ZT'769 Z11,69 06Z'6SS £00Z/SZ/6 %000'9 6£68690#100d VWNd 11 aqua aqua aqua iud/saiurtg aqua — a4va pavodag u0pdF=asaQ adA, ssoZ/UJUD 40M ;nnouxd 4800 aa�d avea amaS uusy a;uQ apBs,L �xz3 'g B's EOOZ/OE/6 - EOOZ/Z/6 000010000930-asayatzosrloo-asoo asn :6ouamno oseg Ajo2apaa uopossuvil Agpapodag 600aM3 :aI:podag unwa uonolesulm L Transaction Detail Report M: EWB009 Reportedby Transaction Category Base Currency: USD OCSD-CONSOLIDATED-OCS000010000 9/2/2003 - 9/30/2003 Status: FINAL ......_. ..____..__ _. ._._.._._ _._....__.__.__ Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base 1T GNMA POOL#0587439 6.500% 9/15/2003 12,496.440 505.45 505.45 0.00 11/15/2032 DD 12/01/02SECID: 9/1/2003 36201MS450CSF07522202: LONG TERM 9/15/2003 OPER-PIMCO IT GNMA POOL#0421389 6.500% 9/15/2003 2,258.620 110.30 110.30 0.00 04/15/2026 DD 04/01/96SECID: 9/1/2003 36206UC230CSF07522202: LONG TERM OPER-PIMCO 9/15/2003 IT GNMA POOL#0438057 6.000% 9/15/2003 40.540 147.73 147.73 0.00 05/15/2028 DD 05/01/98SECID: 9/1/2003 36207PTN90CSF07522202:LONG TERM 9/15/2003 O PER-PIMCO IT GNMA POOL#0449851 6.500% 9/15/2003 5,085.980 174.30 174.30 0.00 01/15/2028 DD 01/O1/98SECID: 9/1/2003 36208FWLOOCSF07522202:LONG TERM 9/15/2003 OPER-PIMCO IT GNMA POOL#0457814 6.000% 9/15/2003 4,128.020 233.90 233.90 0.00 10/15/2028 DD 10/01/98SEC ID: 9/1/2003 36208QSB30CSF07522202: LONG TERM 9/15/2003 OPER-PIMCO IT GNMA POOL#0465546 6.0000/a 9/15/2003 85,189.230 2,961.26 2,961.26 0.00 08/15/2028 DD 08/01/98SECID: 9/1/2003 36209AET30CSF07522202: LONG TERM 9/15/2003 OPER-PIMCO IT GNMA POOL#0465555 6.000% 9/15/2003 17,776.120 2,938.13 2,938.13 0.00 09/15/2028 DD 09/01/98SECID: 9/1/2003 36209AE480CSF07522202:LONG TERM 9/15/2003 OPER-PIMCO IT GNMA POOL#0466845 6.500% 9/15/2003 5,841.430 514.98 514.98 0.00 06/15/2028 DD 06/01/98SECID: 9/1/2003 36209BTA60CSF07522202: LONGTERM 9/15/2003 OPER-PIMCO IT GNMA POOL#0467279 6,000% 9/15/2003 228.160 116.03 116.03 0.00 10/15/2028 DD 10/0 1/98SEC ID: 9/1/2003 36209CCQ70CSF07522202: LONG TERM 9/15/2003 OPER-PIMCO IT GNMA POOL#0467286 6.000% 9/15/2003 39,063.300 2,478.19 2,478.19 0.00 10/15/2028 DD 10/0 1/98SEC ID: 9/1/2003 36209CCX20CSF07522202: LONG TERM 9/15/2003 OPER-PIMCO 21 Workbench a{�uaq�Jq� ZZ £OOZ/SI/6 00WId-HSdO EOOZ/i/6 YOMDNO'I•ZOZZZSLOASO08ENA60M QIOSS10/10/LO QQ TEOZ/SiILO 00'0 ZO'9L0'b ZO'9LO'b OLL'0I6'8II 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Transaction Detail Report ID: EWB009 Reportedby Transaction Category Base Currency USD OCSD-CONSOLIDATED-OCSGO0010000 9/2/2003 - 9/30/2003 Status: FINAL Trade Date Tran Settle Date Price Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base IT SBA GTD DEV PARTN 2001-20C 1 6.340% 9/2/2003 182,080.630 121,355.55 121,355.55 0.00 03/01/2021SECID: 9/1/2003 83162CI.JOOCSF07522202:LONG TERM OPER-PIMCO 9/2/2003 IT UNITED AIRLS PASSTHRU 01-1 C 6.831% 9/2/2003 1,600,000.000 54,648.00 54,648.00 0.00 03/01/2010 DD 08/22/01SECID: 9/1/2003 909317BC20CSF07522202:LONG TERM 9/2/2003 OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.375% 9/30/2003 0.000 17,640.00 17,640.00 0.00 01/15/2007 DD O1/15/97SECID: 9128272M30CSF07522202: LONG TERM 9/30/2003 OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.625% 9/30/2003 0.000 3,690.00 3,690.00 0.00 01/15/2008 DD 01/15/98SEC ID: 9128273T70CSF07522202: LONG TERM OPER-PIMCO 9/30/2003 CD US TREASURY INFLATION INDEX NT 3.875% 9/30/2003 0.000 15,860.00 15,860.00 0.00 01/15/2009 DD 01/15/99SECID: 9128274Y50CSF07522202: LONG TERM 9/30/2003 OPER-PIMCO IT VERIZON GLOBAL FDG CORP GLOBAL 9/2/2003 3,000,000.000 110,625.00 110,625.00 0.00 7.375%09/01/2012 DD 08/26/02SECID: 9/1/2003 92344GAT30CSF07522202: LONG TERM 9/2/2003 OPER-PIMCO IT VIRGINIA ELEC&PWR 01 SER A 5.750% 9/30/2003 3,500,000.000 100,625.00 100,625.00 0.00 03/31/2006 DD 03/27/01SECID: 9/30/2003 927804ENOOCSF07522202: LONG TERM 9/30/2003 OPER-PIMCO TOTAL FIRED INCOME SECURITIES U.S.DOLLAR 20,122,103.310 943,217.10 943,217.10 0.00 TOTAL FIXED INCOME SECURITIES BASE: 20,122,103.310 943,217.10 943,217.10 0.00 TOTAL INTEREST BASE: 35,422,103.310 961,230.33 961,230.33 0.00 TOTAL TRANSACTIONS: 40,977,982.880 6,70S,492.14 -4,368,779.58 411,662.48 26 4iWkbenair FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAHR03-91 14(c) Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: QUARTERLY INVESTMENT MANAGEMENT PROGRAM REPORT FOR THE PERIOD JULY 1 , 2003 THROUGH SEPTEMBER 30, 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file the Quarterly Investment Management Program Report for the period July 1 , 2003 through September 30, 2003. SUMMARY Section 15.0 of the District's Investment Policy includes monthly and quarterly reporting requirements for the District's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by PIMCO, the District's external money manager. The ongoing monitoring of the District's investment program by staff and Callan Associates, the District's independent investment advisor, indicates that the District's investments are in compliance with the District's adopted Investment Policy and the California Government Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for the District to meet budgeted expenditures for the next six months. The District's portfolios do not include any reverse repurchase agreements or derivative securities. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) G:\wp.dta\agenda!FAHR\FAHR2003\1103\03-91,0tly Investment Report.doc Revised: 8/20/98 Page 1 ADDITIONAL INFORMATION Performance Reports The Quarterly Strategy Review, prepared by PIMCO, and the Investment Measurement Service Quarterly Review, prepared by Callan Associates, are attached for reference. Also attached are Long-Term and Liquid Operating Monies Summary of Performance Data and Portfolio Statistics charts that depict the performance results, estimated yield and duration, credit quality, and sector diversification of the District's portfolios, as of July 1 , 2003 and September 30, 2003. The Liquid Operating Monies portfolio, with an average maturity of 90 days, consists entirely of cash equivalent investments such as U.S. Treasuries and corporate discount notes. Portfolio Performance Summary The following table presents a performance summary of the District's portfolios as compared to their benchmarks for the period July 1 through September 30, 2003. Portfolio Performance Summary Quarter Ended September 30,2003 Liquid Operating Monies(°o) Long-Term Operating Monies(%) Total Rate Total Rate of of Return Benchmark('' Return Benchmark(') 3 Months 0.29 0.25 0.34 0.34 6 Months 0.60 0.53 1.80 2.00 9 Months 0.96 0.83 2.98 3.16 12 Months 1.47 1.22 4.09 4.55 Since inception 30 Sept.95 4.77 4.27 6.70 6.68 Market Value S38.OM $385.9M Average Quality "AAA" "AAA" Current Yield(°o) 4.2 4.4 Estimated Yield to Maturity(go) 1.3 2.5 Quarterly Deposits(Withdrawals) S(28.71M $54.1 M Estimated Annual Income $1.5M S16.OM (1) Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index ■ Long-Term Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. Liquid Long-Term Quarter Operating Operating Ending Monies($M) Monies($M) 31 Dec.02 64.3 321.2 31 Mar.03 49.6 325.0 30 June 03 66.5 329.7 30 Sept.03 38.0 385.9 G:\wp.dta\agenda\FAHR\FAHR2003\1103\03-91.Otly Investment Report.doc Revised: 8/20/98 Page 2 e District's Investment Account Balances as of September 30, 2003 74 Book Balances Estimated Investment Accounts September 30,2003 Yield(%) State of Calif. LAIF $ 34,246,098 1.64 Union Bank Checking Account 1,485,007 0.94 PIMCO—Short-term Portfolio 37,481,283 1.43 PIMCO-Long-term Portfolio 382,596,263 2.83 Petty Cash 5,000 N/A TOTAL $455 813 651 2.62 Debt Service Reserves w/Trustees $191.580.843 1.84 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Historical Yield Curve Graph 2. PIMCO Quarterly Report 3. Quarter End Portfolio Market Value Bar Chart 4. Summary of Performance Data and Portfolio Statistics — Liquid Operating Monies 5. Summary of Performance Data and Portfolio Statistics— L-T Operating Monies 6. Asset Summary by Asset Type — Liquid Operating Portfolio 7. Asset Summary by Asset Type — Long Term Portfolio 8. Investment Listing of Liquid Operating and L-T Portfolios (Yield Analysis Report). 9. Investment Transactions and Balances in LAIF 10. Callan Report (separate bound document) 11. PIMCO Report (separate bound document) G:\wp.dta\agenda\FAHR\FAHR2003\1103\03.91.otly Investment Reporl.doc Revised: 8/20/98 Page 3 Prepared by Finance, 11/5/2003, 10:44 AM HISTORICAL YIELD CURVE 5.25 5.00 4.75 4.50 4.25 4.00 3.75 3.60 .Z 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0 E E N CO) qt to f- 0 CO) 31-Mar-03 30-Jun-03 f 30-Sep-03 G:\excel.dta\fin\2220\geggikFinance\HistoricalTREASURYyieldcurve a P I M C O 840 Newport Center Drive Suite 300 Newport Beach,CA 92660 Tel: 949,720.6000 Fax:949.720.1376 October 30,2003 Mr. Mike White Controller Orange County Sanitation District 10844 Ellis Avenue Administration Building Fountain Valley, CA 92708-7018 Re: 3rd Quarter 2003 Report Dear Mike: The following is a description of events in the bond markets during the 3rd quarter of 2003 and an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term, Liquid, and COP Proceeds portfolios over the period. We have also included a section on strategies to be pursued in your portfolios during the coming months. Bond Market Recap: High Grade Bonds Lose Ground In Volatile Third Quarter Most investment grade bonds lost ground in the third quarter because of a sharp rise in interest rates in July, the worst month in the U.S. government bond market in more than 23 years. Yields on benchmark 10-year Treasuries soared more than 130 basis points in July, reversing a rally that had seen the 10-year yield plunge to a 45-year low near 3 percent in June. Though bonds bounced back later in the quarter, the damage in July was enough to push returns for the broad market into negative territory for the full period, as the Lehman Brothers Aggregate Bond Index posted a modest loss of 0.15 percent. The July swoon came amid expectations for stronger economic growth in the second half of 2003 and worries about higher interest rates. The trigger for the sell-off was a suggestion by the Federal Reserve that it was less inclined to pursue a so-called "unconventional"approach to reflating the economy than it had previously led investors to believe. Demand for Treasuries fell because this approach entails driving down longer term interest rates by purchasing Treasuries further out the yield curve. The 10-year Treasury yield finished the quarter at 3.95 percent, up 43 basis points from the prior quarter but not far from where it started the year. Bonds bounced back later in the third quarter as lingering overcapacity, weak labor markets and faster productivity growth gave investors confidence that inflation would remain well contained. Corporate managers not yet convinced that economic growth will accelerate remained cautious about investment and hiring. Their reluctance contributed to rapid labor productivity growth as companies squeezed more out of their existing capital stock and employees. In a soft labor market, companies captured the gains from this enhanced productivity in the form of higher profits. V Highest Yielding Bonds Weather Market Turbulence in Q3 The following is a summary of fixed income sector performance: • Mortgages lagged Treasuries on a like-duration basis during a volatile period in the mortgage market. Mortgage rates rose during the quarter and refinancing volume slowed by more than 70 percent from record highs reached in May.As refinancing slowed, mortgages' durations extended from historically low levels at the start of the quarter. This volatility caused mortgage yield premiums to widen substantially in July. The sector recovered later in the period, however, as rates stabilized and then fell. Demand from banks attracted to mortgages' relatively high yields and strong credit quality supported the market later in the period. ■ Corporate bonds, particularly lower-grade issues, held up better than Treasuries and mortgages, as firming corporate profits boosted investor demand. BBB-rated bonds continued to fare well relative to their higher-rated counterparts. Differences in average credit premiums between BBBs and AAs fell to only 58 basis points, near their historical average, from more than 160 basis points late in 2002. ■ Emerging market bonds continued to outperform during the quarter as their high yields cushioned investors against Treasury volatility. The rally was broad based, as many issuers have improved their credit fundamentals, leading to compressed credit premiums. • Treasuries lagged most developed bond markets even though rates rose worldwide during the third quarter. The U.S. was more influenced by technical factors, such as speculation about potential Fed purchases of Treasury bonds,than were other markets. Performance Attribution: Long Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District turned in a 0.34 percent return over the quarter, as did its benchmark, the Merrill Lynch 1-5 year Government Corporate Index. This portfolio's performance was due in part to the following factors: • Above-index duration early in the quarter was negative as rates rose; we allowed mortgage durations to lengthen in order to retain mortgages' attractive yields and credit quality ■ A broader-than-index curve structure was negative for the quarter as yields rose most on maturities outside the index,especially in July ■ A mortgage emphasis detracted from returns as mortgages were adversely affected by high levels of volatility ■ Corporate holdings were positive as rising profits stimulated investor demand; positive security selection of telecom and auto issues further enhanced returns ■ A tactical allocation to real return bonds was positive as real yields rose less than those on nominal Treasuries 2 i Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District turned in a 0.29 percent return over the quarter,outperforming the 3-month Treasury Bill Index by 4 basis points. This portfolio's performance was due in part to the following factors: ■ Near-index duration was neutral for returns ■ A corporate emphasis was positive as rising profits stimulated investor demand; positive security selection of telecom issues added to returns ■ Use of higher yielding securities such as commercial paper and short-term notes contributed to performance 112003 COP Proceeds—Future Construction"Portfolio The COP Proceeds portfolio that PIMCO manages on behalf of Orange County Sanitation District funded in late August and turned in a 0.14 percent return in the month of September. The portfolio outperformed the 3-month Treasury Bill Index by 6 basis points for the partial quarter period despite a volatile quarter in bond markets. This portfolio's performance was due in part to the following factors: ■ Near-index duration was neutral for returns ■ A corporate emphasis was positive as rising profits stimulated investor demand ■ Use of higher yielding securities such as commercial paper and short-term notes contributed to performance Economic Outlook: Economy to Improve Near Term But Sustainability in Doubt PIMCO is optimistic about the cyclical outlook, forecasting an upturn in the U.S. over the next 6 to 12 months with a positive spillover effect into global demand. This revival will, however, either exacerbate or fail to redress secular imbalances such as the U.S. current account deficit, structural rigidities in Europe and huge public sector debt in Japan. We are pessimistic that the upturn will be sustained beyond a cyclical time frame because confronting these imbalances will constrain growth. Weak labor markets, low capacity utilization and rapid productivity growth will keep inflation tame over the next year. With inflation under control, interest rates will fluctuate near current levels, with the 10- year Treasury yield hovering close to 4 percent. There will be volatility around economic releases, however, as markets reassess prospects for growth.Key elements of PIMCO's forecast are: ■ Disposable personal income will get a boost from federal tax cuts and the lagged impact of the mortgage-refinancing boom. The Federal Reserve will support recovery by keeping the federal funds rate at 1 percent for at least the next year. 3 ■ Recent strength in riskier asset classes will bolster confidence among investors and make corporate balance sheet repair, already well advanced, easier to accomplish. It remains unclear, however, whether corporate risk appetites will revive enough to fuel the rebound in capital spending and hiring that is critical for sustained growth. ■ Growth prospects are improved in Europe, helped by the U.S. recovery and tax cuts in Germany. Growth will remain below potential,however,held back by rigid product and labor markets. Stronger external demand is sparking a recovery in Japan, especially among globally competitive Japanese corporations. A rally in Japanese stocks has bolstered the balance sheets of Japan's troubled banks. ■ China, struggling to employ workers leaving farms and troubled state-owned firms, will continue its export-driven economic policy. To keep its exports competitive, China will help fund the U.S. trade deficit on favorable terms and resist a currency revaluation. Over the longer run,however,China will allow its own consumers to gain from a stronger currency, implying a weaker dollar and eventual upward pressure on U.S. interest rates. Ample Opportunities To Add Value in Fixed Income Markets With no clear trend expected in rates in the near term, we will target near-index duration. However, we will take exposure to the short end of the U.S. and European yield curves as markets price in more restrictive central bank policies than we foresee. A steep yield curve presents the opportunity to reap gains via"roll down," or price appreciation that arises as bonds are revalued at successively lower yields as they approach maturity. Another way to exploit the steep curve is to buy bonds with longer settlement periods and invest cash backing the unsettled issues in short-term debt with relatively high yields. Mortgage-backed bonds are fairly priced, so we will target a near-index weighting. We will remain underweight in corporates, because they generally pay slim yield premiums for credit risk Outside these core strategies, however, real return, municipal and emerging market bonds remain compelling. TIPS offer attractive yields relative to long-run averages and hedge against secular inflation risk. Municipal issues provide yields near those of taxable debt and are less vulnerable to selling from non-U.S. investors than Treasuries. High quality emerging market bonds also enhance portfolio yield and will benefit from a pickup in growth in developed economies in the near term. Strategy: The following list highlights the strategies that will be used in the Long Term portfolio in the coming months: ■ Target near-index duration because we foresee no clear trend in interest rates in the near term ■ Retain broader-than-index curve position to enhance yield given a steep yield curve; this strategy will also benefit from"roll-down,"or price appreciation as bonds are revalued at lower yields over time ■ Retain emphasis on mortgages to benefit from their long-term structural advantages; add value through coupon selection ■ Hold corporates to capture attractive yields vs. Treasuries, but do not increase allocations; many corporate issues offer slim credit premiums in a challenging economic environment ■ Hold TIPS, which offer yields above long-term averages and provide a hedge against secular inflation risk 4 The following list highlights the strategies that will be used in the Liquid and COP Proceeds portfolios in the coming months: ■ Target duration slightly above the benchmark to capture extra yield available due to a steep yield curve ■ Take modest exposure to short maturity U.S. issues as markets price in more restrictive central bank policies than we foresee ■ In a challenging economic environment, limit corporate holdings to issues with attractive yields, compelling valuations and solid credit characteristics We hope you find this information useful. Please feel free to call us with any questions. Sincerely, Christine Telish,CFA John M.Miller,CFA Vice President Vice President 5 OCSD Investment Management Program Quarter End Portfolio Values {Marked-to-Market} $450,000,000 —- $400,000,000 -— — — $350,000,000 — — — --- -- — $300,000,000 — $250,000,000 $200,000,000 - - — — $150,000,000 $100,000,000 $50,000,000 $0 30 Jun 02 30 Sep 02 31 Dec 02 31 Mar 03 30 Jun 03 30 Sep 03 131-iquid Operating Monies 171-ong-Term Operating Monies Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Liquid Operating Portfolio 5-Year Return vs.Standard Deviation 11 r 10 Performance 'Periods Ended 1 r 1 ®®® • 6 x Total Portfolio' E Cui rou PAL 1-3 Yr. 9 P °' 6 Before Fees(%) 4.77 4.25 3.30 1.47 0.96 0.60 0.29 0: 10-Yr.Strip 1 ♦ Treasury f After Fees(%) 4.63 4.10 3.15 1.32 0.84 0.51 0.23 " 5 4 ■Portfolio c Index 3 Citigroup 3 Month T-Bill Index(%)Z 4.27 3.68 2.73 1.22 0.83 0.53 0.25 1 21 1 � 0 1 2 3 4 5 6 7 8 9 10 11 Standard Deviation of Relum2I%) %of Market Value %of Duration Summary Information Total Market Value($MM) 66.5 38.0 Government 23 38 39 40 Quarterly Contributions($MM) 16.8 -28.7 Mortgages 0 0 0 0 Estimated Annual Income($MM) 2.2 1.5 Corporates 16 16 34 22 Estimated Yield to Maturity(%) 1.3 1.3 High Yield 0 0 0 0 Estimated Duration(yrs) 0.3 0.3 Non U.S.$Developed 0 0 0 0 Average Maturity(yrs) 0.3 0.3 Emerging Markets 0 0 0 0 Average Quality AAA AAA Other 0 0 0 0 Average Coupon(%) 3.4 4.2 Net Cash Money Markets 61 46 27 38 Tracking Error(3 yrs..%)3 0.2 0.2 Total 100 100 100 100 Information Ratio(3 yrs.)4 3.3 2.8 Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Long Term Portfolio 5-Year Return vs.Standard Deviation 9 - i Performance 7 81 I Periods Ended 1 11 1 . . . . o g ! Y Index X LBAG Total Portfolio' � Portfolio 5 Before Fees(%) 6.70 6.09 7.22 4.09 2.98 1.80 0.34 After Fees(%) 6.55 5.94 7.06 3.93 2.88 1.73 0.30 m 4 Citigroup 3- c 3 Mo c Q Merrill 1-5 Year Gov't.Corp. (%)2 6.68 6.29 7.74 4.55 3.16 2.00 0.34 2 1 I 0 - 0 1 2 3 4 5 6 7 8 9 Standard Deviation of Return2(%) %of Market Value %of Duration Summary Informallon1 11 1 Ir . r . 1 11 1 11 1 11 1 11 Total Market Value(SMM) 329.7 385.9 Government 46 47 55 53 Quarterly Contributions($MM) 0.0 54.1 Mortgages 8 17 7 18 Estimated Annual Income($MM) 14.6 16-0 Corporates 14 11 31 25 Estimated Yield to Maturity(%) 2.2 2.5 High Yield 0 0 0 0 Estimated Duration(yrs) 2.1 2.3 Non U.S.S Developed 0 0 0 0 Benchmark Duration(yrs) 2.4 2.4 Emerging Markets 0 0 0 0 Average Maturity(yrs) 2.5 2.7 Other 0 0 0 0 Average Quality AAA AAA Net Cash Equivalents 32 25 7 4 Average Coupon(%) 4.8 4.4 Total 100 100 100 100 Tracking Error(3 yrs.,%)3 0.6 0.7 Information Ratio(3 yrs.)' -0.9 -0 7 Asset Summary Report ID:GL8251 Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LIQUID OPER-PIMCO-OCSF07511102 _ _ _ _ 9/30l aq _ _ Status:FINAL - ---- ---- --- — -- — — - Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S. DOLLAR INTEREST 468,854.70 468,854.70 1.24% 0.00 CERTIFICATES OF DEPOSIT-DOMESTIC 1,400,000.000 1,400,000.00 1,400,000.00 3.69% 0.00 FED HM LOAN BNK-LESS THAN 1YR 6,100,000.000 6,081,765.24 6,081,765.24 16.03% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 1 6,200,000.000 6,171,369.67 6,171,369.67 16.26% 0.00 FNMA ISSUES- LESS THAN IYR 3,300,000.000 3,288,893.54 3,288,893.54 8.67% 0.00 MUTUAL FUNDS 175,658.110 175,658.11 175,658.11 0.46% 0.00 TREASURY BILLS- LESS THAN IYR 1,200,000.000 1,194,191.67 1,194,191.67 3.15% 0.00 U.S. DOLLAR 18,375,658.110 18,780,732.93 18,780,732.93 49.49% 0.00 CASH&CASH EQUIVALENTS 18,375,658.110 18,780,732.93 18,780,732.93 49.49% 0.00 FIXED INCOME SECURITIES U.S. DOLLAR BANKING&FINANCE 4,950,000.000 5,121,180.00 5,036,662.50 13.27% -84,517.50 INDUSTRIAL 300,000.000 308,808.00 302,013.00 0.80% -6,795.00 U.S.AGENCIES 7,200,000.000 7,441,266.00 7,293,131.32 19.22% -148,134.68 U.S. GOVERNMENTS 5,800,000.000 6,251,984.38 5,877,952.00 15.49% -374,032.38 UTILITY-TELEPHONE 650,000.000 677,046.50 659,646.00 1.74% -17,400.50 U.S. DOLLAR 18,900,000.000 19,800,284.88 19,169,404.82 50.51% -630,880.06 FIXED INCOME SECURITIES 18,900,000,000 19,800,284.88 19,169,404.82 50.51% -630,880.06 TOTAL ASSETS-BASE: 37,275,658.110 38,581,017.81 37,950,137.75 100.00% -630,880.06 1 Workbench — — —v��--- - - --- --- Report ID:GL8251 Asset Summary Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LLONGTEMRMM OPER PIMCO`OCSF07522202 /30/2003 Status:FINAL --- — —�------- ---- Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S. DOLLAR CASH -180,169.24 -180,169.24 -0.05% 0.00 PENDING TRADES -24,662,805.47 -24,662,805.47 -6.39% 0.00 INTEREST 3,332,359.74 3,332,359.74 0.86% 0.00 COMMERCIAL PAPER- DISCOUNT 3,400,000.000 3,388,394.44 3,388,394.44 0.88% 0.00 FED HM LOAN BNK-LESS THAN 1YR 32,300,000.000 32,183,468.43 32,183,468.43 8.34% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 1 9,700,000.000 9,672,980.11 9,672,980.11 2.51% 0.00 FNMA ISSUES-LESS THAN 1YR 42,800,000.000 42,651,438.17 42,651,438.17 11.05% 0.00 MUTUAL FUNDS 143,053.620 143,053.62 143,053.62 0.04% 0.00 TREASURY BILLS-LESS THAN IYR 4,500,000.000 4,478,218.75 4,478,218.75 1.16% 0.00 U.S. DOLLAR 92,843,053.620 71,006,938.55 71,006,938.55 18.40% 0.00 CASH&CASH EQUIVALENTS 92,843,053.620 71,006,938.55 71,006,938.55 18.40% 0.00 FIXED INCOME SECURITIES U.S. DOLLAR ABS-AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 244,000.00 0.06% -1,356,000.00. BANKING&FINANCE 32,335,000.000 33,468,411.00 34,442,367.45 8.92% 973,956.45 COLLATERALIZED MORTGAGE OBLIGATION 2,504,229.760 2,504,229.76 2,718,717.04 0.70% 214,487.28 FHLMC MULTICLASS 1,198,327.690 1,199,604.37 1,246,776.08 0.32% 47,171.71 FHLMC POOLS 194,797.030 195,424.71 200,869.18 0.05% 5,444.47 FNMA POOLS 47,749,442.050 48,990,910.44 49,207,916.28 12.75% 217,005.84 GNMA MULTI FAMILY POOLS 3,718,877.150 3,700,333.93 3,779,028.74 0.98% 78,694.81 GNMA SINGLE FAMILY POOLS 11,850,348.080 12,071,678.59 12,432,369.33 3.22% 360,690.74 INDUSTRIAL 12,000,000.000 12,458,780.00 12,436,500.00 3.22% -22,280.00 INFLATION INDEXED SECURITIES 34,241,230.000 34,258,241.71 38,367,363.32 9.94% 4,109,121.61 PVT PLACEMENTS-MORE THN 1YR 752,000.000 826,199.84 826,199.84 0.21% 0.00 U.S.AGENCIES 41,204,132.880 42,280,838.46 44,547,779.14 11.54% 2,266,940.68 U.S. GOVERNMENTS 92,597,276.280 100,770,646.50 100,926,237.71 26.15% 155,591.21 UTILITY-ELECTRIC 6,500,000.000 6,438,210.00 6,967,160.00 1.81% 528,950.00 UTILITY-TELEPHONE 6,000,000.000 6,594,240.00 6,578,400.00 1.70% -15,840.00 U.S.DOLLAR 294,445,660.920 307,357,749.31 314,921,684.11 81.60% 7,563,934.80 1 Workben.4 Report ID:GL8251 Asset Summary Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER-PIMCO-OCSF07522202 _ /30/2003 Status:FINAL ---�---- —— Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base FIXED INCOME SECURITIES 294,445,660.920 307,357,749.31 314,921,684.11 81.60% 7,563,934.80 TOTAL ASSETS-BASE: 387,288,714,540 378,364,687.86 385,928,622.66 100.00% 7,563,934.80 2 Workbench YLDANAL YIELD ANALYSIS PAGE t 1 OCSF07511102 2003/09/30 RUN DATE t 10/06/03 DISTRICT: LIQUID OPERATING RUN TIME t 10.31.55 PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ 6 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- -------^ ------- -------- ------------ ---------- CASH 6 CASH EQUIVALENTS 500,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.532 497,660.00 2.71 313384NJ4 MAT 10/24/2003 A-1+ 497,660.00 1.33 1,500,000.00 FEDERAL HONE LN BKS CONS DISC .000 .000 P-1 99.736 1,496,037.71 8.16 313384NPO MAT 10/29/2003 A-1+ 1,496,037.71 3.99 3,100,000.00 FEDERAL HOME LN BKS CONS DISC .000 .000 P-1 99.788 3,093,442.53 16.89 313384PL7 MAT 11/19/2003 A-1+ 3,093,442.53 8.25 1,000,000.00 FEDERAL HOME LN BKS CINS DISC .000 .000 P-1 99.462 994,625.00 5.43 313384UK3 HAT 03/17/2004 A-1+ 994,625.00 2.65 2,400,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.721 2,393,314.67 13.06 313396PT4 HAT 11/26/2003 A-1+ 2,393,314.67 6.39 3,800,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.422 3,778,055.00 20.63 313396UZ4 MAT 03/31/2004 A-1+ 3,779,055.00 10.08 1,000,000.00 FEDERAL NATL MTG ASSN DISC .000 .000 P-1 99.468 994,677.08 5.43 313588PDI MAT 11/12/2003 A-l+ 994,677.00 2.65 2,300,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.749 2,294,216.46 12.52 313588PL3 HAT 11/19/2003 A-l+ 2,294,216.46 6.12 1,200,000.00 U S TREASURY BILL .000 .000 P-1 99.516 1,194,191.67 6.52 912795PK1 DUE 02/12/2004 DD 00/14/2003 A-1+ 1,194,191.67 3.19 1,400,000.00 WELLS FARGO BK NA INSTL C/D .000 1.060 100.000 1,400,000.00 7.64 94975UXBB 1.060% 10/23/2003 DD 09/23/03 1,400,000.00 3.74 175,658.11 DREYFUS TREASURY CASH MGMT .000 .798 AAA 100.000 175,658.11 .95 996085247 AAA 175,658.11 .47 -------- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 .027 18,311,878.23 100.00 18,311,878.23 48.86 FIXED INCOME SECURITIES 1,000,000.00 ASSOCIATES CORP NORTH AMER .000 5.658 AA1 102.515 1,041,290.00 5.34 046003KA6 5.800% 04/20/2004 DD 04/20/99 AA- 1,025,150.00 2.74 YLDANAL YIELD ANALYSIS PAGE : 2 OCSF07511102 2003/09/30 RUN DATE : 10/06/03 DISTRICT: LIQUID OPERATING RUN TIME : 10.31.55 =•••- PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 650,000.00 BELL ATLANTIC-NEW JERSEY INC .000 5.789 AA3 101.484 677,046.50 3.44 077858AA6 5.875% 02/01/2004 DD 02/01/94 A+ 659,646.00 1.76 300,000.00 COLGATE PALHOLIVE MTN TR 00058 .000 5.235 AA3 100.671 309,809.00 1.57 19416QCK4 5.270% 12/01/2003 DD 11/24/90 AA- 302,013.00 .81 1,350,000.00 FEDERAL FARM CR BKS CONS SYSTE .000 5.330 AAA 101.316 1,399,963.50 7.13 31331H6G7 6.40% 01/23/2004 DO 01/01/1999 AAA 1,367,760.06 3.65 550,000.00 FEDERAL FARM CR BKS CONS MTN .000 4.998 AAA 100.032 565,229.50 2.87 3133IRC78 5.000% 10/02/2003 DO 10/02/98 AAA 550,178.42 1.47 1,100,000.00 FEDERAL HOME LN HTG CORP DEB .000 3.701 AAA 101.323 1,125,905.00 5.81 3134A4PH1 3.750% 04/15/2004 DD 04/15/02 AAA 1,114,558.29 2.97 4,200,000.00 FEDERAL NATL MTG ASSN DEBS .000 5.052 AAA 101.444 4,350,168.00 22.22 31359MEM1 5.125% 02/13/2004 DD 02/08/99 AAA 4,260,634.56 11.37 1,000,000.00 GENERAL ELEC CAP MTN #TR 00545 .000 1.239 AAA 100.062 1,001,089.00 5.21 36962GYS7 VAR RT 05/20/2004 DO 05/20/02 AAA 1,000,620.00 2.67 1,000,000.00 LEHMAN BROS HLDGS INC .000 6.453 A2 102.671 1,045,590.00 5.35 524908BZ2 6.625% 04/01/2004 DD 03/26/99 A 1,026,710.00 2.74 500,000.00 PAINE WEBBER GROUP INC NTS .000 6.396 AA2 100.843 519,405.00 2.63 695629CE3 6.450% 12/01/2003 DD 12/01/98 AA+ 504,215:00 1.35 1,000,000.00 US BANCORP MTN #TR 00119 .000 5.835 AA3 102.828 1,046,310.00 5.36 91159HEY2 6.000% 05/15/2004 DD 05/10/99 A+ 1,028,280.00 2.74 5,800,000.00 U S TREASURY BONDS .000 11.718 AAA 101.344 6,251,984.38 30.66 91281ODGO 11.875% 11/15/2003 DD 10/05/83 AAA 5,877,952.00 15.68 YLDANAL YIELD ANALYSIS PAGE : 3 OCSF07511102 2003/09/30 RUN DATE : 10/06/03 DISTRICT: LIQUID OPERATING RUN TINE : 10.31.55 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE $ TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 450,000.00 WELLS FARGO & CO SUBNT 1.615 6.102 AA2 100.375 467,496.00 2.35 949740BY9 6.125% 11/01/2003 DD 11/01/93 A 451,687.50 1.21 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .007 5.725 19,800,284.88 100.00 19,169,404.82 51.16 -------- ------- ----------------- --------- TOTAL .003 2.801 38,112,163.11 100.00 37,481,283.05 100.00 T) a YLDANAL YIELD ANALYSIS PAGE : 4 OCSF07522202 2003/09/30 RUN DATE t 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME 2 10.31.55 PAR VALUE YTN AT CURRENT MOODY MARKET TOTAL COST/ 6 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- - ------ ------- -------- ------------ ---------- CASH 6 CASH EQUIVALENTS 4,400,000.00 FEDERAL HOME LN SK CONS DISC N .000 .000 P-1 99.761 4,389,473.00 4.74 313384MUO HAT 10/10/2003 A-1+ 4,389,473.00 1.08 12,000,000.00 FEDERAL HOME LN BKS CONS DISC .000 .000 P-1 99.747 11,969,666.67 12.93 313384MZ9 HAT 10/15/2003 A-1+ 11,969,666.67 2.94 3,800,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.740 3,790,115.88 4.09 313384NJ4 HAT 10/24/2003 A-1+ 3,790,115.88 .93 2,000,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.433 1,988,663.33 2.14 313384NY1 MAT 11/07/2003 A-l+ 1,988,663.33 .49 3,400,000.00 FEDERAL HOME LN BKS GINS DISC .000 .000 P-1 99.460 3,381,623.47 3.65 313384UK3 MAT 03/17/2004 A-l+ 3,381,623.47 .83 6,700,000.00 FEDERAL ROHE LN BKS CONS DISC .000 .000 P-1 99.462 6,663,926.08 7.20 313384UH9 HAT 03/19/2004 A-l+ 6,663,926.08 1.64 9,700,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.721 9,672,980.11 10.45 313396PT4 HAT 11/26/2003 A-1+ 9,672,980.11 2.37 13,700,000.00 FEDERAL NATL HTG ASSN DISCOUNT .000 .000 P-1 99.745 13,665,023.14 14.77 31358814Z5 HAT 10/15/2003 A-1+ 13,665,023.14 3.35 11,300,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.733 11,269,873.65 12.18 313588PL3 HAT 11/19/2003 A-l+ 11,269,873.65 2.77 200,000.00 FEDERAL NATL MTG ASSN DISC .000 .000 P-1 99.637 199,274.00 .21 313588QA6 A-l+ 199,274.00 .05 800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.663 797,301.63 .86 31358SONS HAT 12/15/2003 A-l+ 797,301.63 .20 200,000.00 FEDERAL NATL MTG ASSN DISC NT .000 .000 P-1 99.553 199,106.00 .21 313588TF2 A-1+ 199,106.00 .05 9,500,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.553 9,457,535.00 10.22 313588TGO HAT 02/19/2004 A-l+ 9,457,535.00 2.32 500,000.00 FEDERAL NATL MTG ASSN DISCUNT .000 .000 P-1 99.550 497,750.00 .53 313588TL9 HAT 02/23/2004 A-1+ 497,750.00 .12 YLDANAL YIELD ANALYSIS PAGE t 5 OCSF07522202 20D3/09/30 RUN DATE t 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME t 10.31.55 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.556 1,792,008.00 1.93 313588TM7 MAT 02/24/2004 A-1+ 1,792,008.00 .44 1,800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.441 1,789,946.75 1.93 313588TN5 MAT 02/25/2004 A-1+ 1,789,946.75 .44 3,000,000.00 FEDERAL NATL MTG ASSN DISC .000 .000 P-1 99.454 2,983,620.00 3.22 313588UK9 A-1+ 2,983,620.00 .73 600,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.662 597,974.33 .64 36959JYCl 11/12/2003 597,974.33 .15 2,800,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.650 2,790,420.11 3.01 36959JZA4 12/10/2003 2,790,420.11 .68 4,500,000.00 U S TREASURY BILL .000 .000 P-1 99.516 4,479,218.75 4.84 912795PKI DUE 02/12/2004 DD 08/14/2003 A-1+ 4,478,218.75 1.10 143,053.62 DREYFUS TREASURY CASH MGMT .000 .798 AAA 100.000 143,053.62 .15 996085247 AAA 143,053.62 .04 ---�---- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 .000 92,517,553.52 100.00 92,517,553.52 22.72 FIXED INCOME SECURITIES 752,000.00 AIG SUNA14ERICA GLOBAL REG S .000 5.325 109.867 826,199.84 .26 000907AAO 5.850% 08/01/2008 DD 08/08/01 826,199.84 .20 23,000,000.00 COMMIT TO PUR FNMA SF MTG .000 4.881 AAA 102.438 23,331,250.00 7.48 01F0504AI 5.000% 10/01/2018 DD 10/01/03 AAA 23,560,625.00 5.78 1,500,000.00 COMMIT TO PUR FNMA SF MTG .000 5.814 AAA 103.203 1,534,375.00 .49 01FO606AB 6.000% 10/01/2033 DD 10/01/03 AAA 1,548,046.80 .38 900,000.00 BEAR STEARNS MTN # TR 00459 .000 1.419 A2 100.062 899,406.00 .20 073928VC4 VAR RT 12/01/2003 DD 08/17/01 A 900,558.00 .22 1,500,000.00 CIT GROUP INC NEW SR HT .000 5.074 A2 108.406 1,527,135.00 .51 125581ADO 5.500% 11/30/2007 DD 12/02/02 A 1,626,090.00 .40 YLDANAL YIELD ANALYSIS PAGE s 6 OCSF07522202 2003/09/30 RUN DATE s 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 10.31.55 PAR VALUE Y'T'M AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- - ------ ------- -------- ------------ ---------- 5,000,000.00 CITIGROUP INC GLOBAL SUB NT .000 5.240 AA2 107.343 5,333,600.00 1.70 172967BP5 5.625% 09/27/2012 DD 08/26/02 A+ 5,367,150.00 1.32 100,193.21 FHLMC GROUP #G4-0353 .000 7.327 AAA 102.361 110,931.86 .03 3128DBMA2 7.500% 10/01/2004 DD 03/01/99 AAA 120,747.12 .03 7,500,000.00 FEDERAL HOME LN BK CONS BDS .000 6.615 AAA 107.713 7,997,625.00 2.56 3133MAUN7 7.125% 02/15/2005 DD 02/08/00 AAA 8,078,509.50 1.98 86,603.82 FHLMC GROUP #78-6064 .000 3.696 AAA 104.062 84,492.85 .02 31348SWZ3 6.384% 01/01/2028 DD 12/01/97 AAA 90,122.06 .02 11,350,000.00 FEDERAL NATL MTG ASSN DEBS .000 4.645 AAA 108.363 11,521,271.50 3.90 31359MJR2 5.250% 06/15/2006 DD 06/22/01 AAA 12,299,225.47 3.02 897,867.52 FNMA POOL #0254510 .000 4.871 AAA 102.645 924,803.55 .29 31371KVB4 5.000% 11/01/2017 DD 10/01/02 AAA 921,611.90 .23 187,647.80 FNMA POOL #0254631 .000 4.871 AAA 102.645 193,277.24 .06 31371KY47 5.000% 02/01/2018 DD 01/01/03 AAA 192,620.20 .05 168,390.70 FNMA POOL 00254760 .000 4.871 AAA 102.645 173,450.66 .05 3137lK5V9 5.000% 06/01/2018 DD 05/01/03 AAA 172,852.05 .04 71,802.84 FNMA POOL 10254866 .000 4.871 AAA 102.645 73,956.93 .02 31371LCB3 5.000% 09/01/2018 DD 08/01/03 AAA 73,701.69 .02 245,061.28 FNMA POOL 10323980 .000 5.727 AAA 104.758 255,859.30 .08 31374T2M0 6.000% 04/01/2014 DD 09/01/99 AAA 256,720.83 .06 36,290.11 FNMA POOL #0357328 .000 4.877 AAA 102.532 37,378.81 .01 31376J4M8 5.000% 01/01/2019 DD 01/01/03 AAA 37,208.80 .01 84,340.76 FNMA POOL #0456482 .000 5.724 AAA 104.820 88,057.02 .02 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 88,406.25 .02 241,995.39 FNMA POOL #0509649 .000 5.724 AAA 104.820 252,658.31 .08 31383OBWO 6.000% 09/01/2014 DD 09/01/99 AAA 253,660.32 .06 194,825.10 FNMA POOL #0535451 .000 5.727 AAA 104.758 203,409.58 .06 31384VZQB 6.000% 06/01/2015 DD 07/01/00 AAA 204,094.51 .05 4,267,050.99 FNMA POOL #0535672 .000 5.727 AAA 104.758 4,455,067.93 1.41 31304WCHI 6.000% 01/01/2016 DD 12/01/00 AAA 4,470,069.17 1.10 YLDANAL YIELD ANALYSIS PAGE 7 OCSF07522202 2003/09/30 RUN DATE : 10/06/03 DISTRICT: LONG-TERN OPERATING RUN TIME t 10.31.55 v=aao=a-a==o=a==a==coact=a=ca=========-ca=c======-a==acc c_o=_e======aaaaacacaaaas..act-act==an=aaa=.-aaaaaaassa=a�aaaascoa-a=caaa= PAR VALUE Y TH AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOON YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,440,144.82 FNMA POOL #0545296 .000 5.738 AAA 104.570 1,503,601.19 .47 31385HXZO 6.000% 11/01/2016 DD 10/01/01 AAA 1,505,963.90 .37 119,286.93 FNHA POOL 10545580 .000 5.734 AAA 104.633 124,543.01 .03 31385JCR7 6.000% 03/01/2017 DD 03/01/02 AAA 124,813.27 .03 230,876.56 FNMA POOL 10545998 .000 5.823 AAA 103.039 240,111.62 .07 31385JRT7 6.000% 11/01/2032 DD 10/01/02 AAA 237,892.14 .06 205,820.73 FNMA POOL 10555101 .000 5.739 AAA 104.570 214,998.05 .06 3138SWU23 6.000% 10/01/2017 DD 11/01/02 AAA 215,235.74 .05 914,332.11 FNMA POOL 10555285 .000 5.803 AAA 103.395 950,905.40 .30 31385W2S7 6.000% 03/01/2033 DD 02/01/03 AAA 945,369.39 .23 403,365.36 FNMA POOL #0555363 .000 4.871 AAA 102.645 415,466.32 .13 31385W5Y1 5.000% 04/01/2018 DD 03/01/03 AAA 414,032.48 .10 902,305.29 FNMA POOL #0555528 .000 5.803 AAA 103.395 938,397.51 .29 31385XD95 6.000% 04/01/2033 DD 05/01/03 AAA 932,934.31 .23 339,493.05 FNMA POOL 10555545 .000 4.871 AAA 102.645 349,677.94 .11 31385XES2 5.000% 06/01/2018 DD 05/01/03 AAA 348,471.05 .09 905,629.54 FNHA POOL 10555640 .000 5.803 AAA 103.395 941,854.72 .29 31385XHRI 6.000% 07/01/2033 DD 06/01/03 AAA 936,371.41 .23 79,020.96 FNMA POOL #0576386 .000 5.768 AAA 104.028 82,502.82 .02 31386XJ72 6.000% 05/01/2016 DD 05/01/01 AAA 92,203.86 .02 224,094.92 FNMA POOL #0576739 .000 5.734 AAA 104.633 233,969.10 .07 31386XV86 6.000% 04/01/2016 DD 04/01/01 AAA 234,476.81 .06 264,776.77 FNMA POOL #0580888 .000 5.734 AAA 104.633 276,443.49 .08 31387DJ91 6.000% 05/01/2016 DD 05/01/01 AAA 277,043.37 .07 210,597.71 FNMA POOL #0594002 .000 5.734 AAA 104.633 219,877.17 .06 31387T3K8 6.000% 07/01/2016 DD 07/01/01 AAA 220,354.30 .05 268,419.45 FNMA POOL #0597376 .000 5.738 AAA 104.570 280,246.68 .08 31387XT96 6.000% 09/01/2016 DD 08/01/01 AAA 280,687.05 .07 202,673.50 FNHA POOL #0605259 .000 5.738 AAA 104.570 211,603.80 .06 31388HHGI 6.000% 09/01/2016 DD 09/01/01 AAA 211,936.31 .05 YLDANAL YIELD ANALYSIS PAGE s 8 OCSF07522202 2003/09/30 RUN DATE s 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TINE : 10.31.55 --_�__.-._---_._---_...------------------- -----...-_�_a_!___;�_s¢a===aaa==a=s=assssssaosssnassoaaosasaaaaaaaaaaaaaaaaaaaa---^--aaa- PAR VALUE YT'N AT CURRENT MOODY MARKET TOTAL COST/ 6 TYPE SECURITY ID SECURITY DESCRIPTION B04t( YIELD S-P PRICE MARKET VALUE 6 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 151,460.24 FNMA POOL #0608366 .000 5.734 AAA 104.633 158,133.95 .05 313SULZ78 6.000% 10/01/2016 DD 09/01/01 AAA 158,477.11 .04 172,684.62 FNMA POOL #0616734 .000 5.734 AAA 104.633 180,293.53 .05 31388WEF9 6.000% 12/01/2016 DD 12/01/01 AAA 180,684.77 .04 216,112.72 FNMA POOL #0630812 .000 5.763 AAA 104.111 225,635.10 .07 31389NYH2 6.000% 02/01/2017 DD 02/01/02 AAA 224,997.07 .06 971,978.16 FNMA POOL #0632376 .000 5.730 AAA 104.720 1,014,805.96 .32 313890050 6.000% 07/01/2017 DD 07/01/02 AAA 1,017,858.54 .25 557,031.83 FNHA POOL #0653116 .000 5.730 AAA 104.720 581,576.05 .18 31390QSDB 6.000% 07/01/2017 DD 07/01/02 AAA 583,325.46 .14 242,834.96 FNMA POOL #0673280 .000 5.738 AAA 104.570 253,534.87 .08 31391P6R2 6.000% 00/01/2017 DD 11/01/02 AAA 253,933.27 .06 609,214.14 FNMA POOL #0681309 .000 4.871 AAA 102.645 627,490.56 .19 31391Y3S4 5.000% 02/01/2018 DD 02/01/03 AAA 625,324.99 .15 76,565.99 FNMA POOL #0691334 .000 4.871 AAA 102.645 79,962.97 .02 31391Y4T1 5.000% 02/01/2018 DD 01/01/03 AAA 78,590.80 .02 30,763.51 FNMA POOL #0685665 .000 4.871 AAA 102.645 39,926.42 .01 31400EW22 S.000% 02/01/2018 DD 02/01/03 AAA 39,798.62 .01 330,350.03 FNMA POOL #0686310 .000 4.671 AAA 102.645 340,260.53 .10 31400FP87 5.000% 03/01/2019 DD 03/01/03 AAA 339,086.24 .08 131,275.19 FNMA POOL #0688739 .000 4.871 AAA 102.645 135,213.44 .04 3140OJEL9 5.000% 06/01/2018 DD 06/01/03 AAA 134,746.80 .03 776,630.16 FNMA POOL #0693834 .000 4.871 AAA 102.645 799,937.30 .25 3140OPY74 5.000% 03/01/2019 DD 03/01/03 AAA 797,176.59 .20 294,023.47 FNMA POOL 00695852 .000 4.871 AAA 102.645 302,944.17 .09 31400SBVO 5.000% 05/01/2010 DD 05/01/03 AAA 301,799.01 .07 871,339.71 FNMA POOL #0695889 .000 4.871 AAA 102.645 903,659.90 .28 31400SC23 5.000% 05/01/2018 DD 05/01/03 AAA 900,541.22 .22 28,882.46 FNMA POOL #0697026 .000 4.871 AAA 102.645 29,748.94 .00 3140OTLF2 5.000% 05/01/2018 DD 04/01/03 AAA 29,646.27 .01 YLDANAL YIELD ANALYSIS PAGE s 9 OCSF07522202 20D3/09/30 RUN DATE s 10/06/03 DISTRICTS LONG-TERM OPERATING RUN TINE s 10.31.55 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 138,264.69 FNMA POOL 10698939 .000 5.728 AAA 104.745 144,356.98 .04 31400VPY2 6.000% 09/01/2017 DD 03/01/03 AAA 144,825.78 .04 294,427.33 FNMA POOL #0702210 .000 4.875 AAA 102.557 303,260.15 .09 31401ADP9 5.000% 05/01/2018 DD 05/01/03 AAA 301,955.29 .07 84,890.02 FNMA POOL #0703195 .000 5.714 AAA 105.008 88,630.49 .02 31401BGC3 6.000% 01/01/2017 DD 04/01/03 AAA 89,141.15 .D2 312,665.02 FNMA POOL 10709148 .000 4.871 AAA 102.645 322,044.97 .10 31401HZM7 5.000% 06/01/2018 DD 06/01/03 AAA 320,933.54 .08 834,646.06 FNMA POOL #0710235 .000 4.871 AAA 102.645 859,685.45 .27 31401KBCS 5.000% 06/01/2010 DD 06/01/03 AAA 856,718.53 .21 27,298.34 FNMA POOL #0713344 .000 4.871 AAA 102.645 28,117.29 .00 3140INP52 5.000% 06/01/2018 DD 06/01/03 AAA 28,020.25 .01 2,651,557.74 FNMA POOL #0720369 .000 4.875 AAA 102.557 2,731,104.47 .86 31401WJNO 5.000% 06/01/2018 DD 06/01/03 AAA 2,719,353.17 .67 324,411.47 FNMA POOL #0721629 .000 4.862 AAA 102.832 334,143.82 .10 31401XVW4 5.000% 07/01/2018 DD 06/01/03 AAA 333,598.90 .08 438,461.74 GNMA POOL #0596612 .000 6.177 AAA 105.223 460,179.30 .14 36200BYH4 6.500% 09/25/2032 DD 09/01/02 AAA 461,361.11 .11 1,480,019.92 GNMA POOL #0569358 .000 6.206 AAA 104.735 1,514,707.78 .49 36200QQK3 6.500% 04/15/2032 DD 04/01/02 AAA 1,550,091.77 .38 64,629.32 GNMA POOL #0569685 .000 6.176 AAA 105.254 67,830.49 .02 3620OQ2S2 6.500% 02/15/2032 DD 02/01/02 AAA 68,024.89 .02 108,542.02 GNMA POOL #0570019 .000 6.177 AAA 105.223 113,918.25 .03 3620ORG48 6.500% 07/15/2032 DD 07/01/02 AAA 114,210.80 .03 710,211.24 GNMA POOL #0574323 .000 6.176 AAA 105.254 745,388.89 .23 36200WAY7 6.500% 12/15/2031 DD 12/01/01 AAA 747,525.10 .18 70,464.87 GNMA POOL #0575364 .000 6.176 AAA 105.254 73,955.08 .02 36200XFD6 6.500% 11/15/2031 DD 11/01/01 AAA 74,167.03 .02 27,102.45 GNMA POOL #0587117 .000 6.177 AAA 105.223 28,444.87 .00 36201MG22 6.500% 06/15/2032 DD 06/01/02 AAA 28,517.92 .01 YLDANAL YIELD ANALYSIS PAGE s 10 OCSF07522202 2003/09/30 RUN DATE s 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME s 10.31.55 ------------------------------------------------==--------^------------------____=_______=====rave=aa=aaaa.----aaa=an--_==PAR VALUE VALUE YTN AT CURRENT MOODY MARKET TOTAL COST/ E TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE MARKET VALUE E TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ -------__- 80,817.68 GNMA POOL #0507439 .000 6.177 AAA 105.223 84,920.68 .02 3620IMS45 6.500E 11/15/2032 DD 12/01/02 AAA 85,038.51 .02 18,104.46 GNMA POOL f0421399 .000 6.159 AAA 105.535 19,001.20 .00 36206UC23 6.500E 04/15/2026 DD 04/01/96 AAA 19,106.57 .00 27,092.30 GNHA POOL #0449851 .000 6.202 AAA 104.797 28,434.22 .00 36208FWLO 6.500E 01/15/2028 DD 01/01/98 AAA 28,391.85 .01 89,231.20 GNMA POOL #0466945 .000 6.163 AAA 105.473 93,651.02 .02 36209BTA6 6.500E 06/15/2028 DD 06/01/98 AAA 94,114.60 .02 677,509.66 GNMA POOL #0468052 .000 6.163 AAA 105.473 721,067.56 .22 36209C5M4 6.500E 07/15/2028 DD 07/01/98 AAA 714,587.46 .18 262,214.03 GNHA POOL #0476041 .000 6.163 AAA 105.473 274,792.11 .08 36209MZE7 6.500E 06/15/2028 DD 06/01/98 AAA 276,564.11 .07 217,313.68 GNHA POOL #0478626 .000 6.160 AAA 105.379 227,737.95 .07 36209QVT9 6.500E 01/15/2029 DD 01/01/99 AAA 229002.79 .06 249,614.15 GNMA POOL #0480590 .000 6.168 AAA 105.379 261,587.84 .08 36209S3F6 6.500E 10/15/2028 DD 10/01/98 AAA 263,040.67 .06 558,777.46 GNMA POOL #0485527 .000 6.176 AAA 105.254 586,454.41 .18 36209YLGI 6.500E 06/15/2031 DD 06/01/01 AAA 588,135.12 .14 633,585.27 GNMA POOL #0485610 .000 6.176 AAA 105.254 664,967.54 .21 36209YN38 6.500E 07/15/2031 DD 07/01/01 AAA 666,873.27 .16 133,203.96 GNMA POOL #0485682 .000 6.176 AAA 105.254 139,801.72 .04 36209YRB6 6.500E 08/15/2031 DD 08/01/01 AAA 140,202.39 .03 140,291.53 GNHA POOL 10485703 .000 6.176 AAA 105.254 147,240.35 .04 36209YRY6 6.500E 08/15/2031 DD 08/01/01 AAA 147,662.32 .04 16,446.65 GNMA POOL #0512235 .000 6.172 AAA 105.316 17,261.27 .00 36211GBC6 6.500E 11/15/2029 DD 11/01/99 AAA 17,321.02 .00 244,244.12 GNMA POOL #0514326 .000 6.168 AAA 105.379 255,960.20 .08 36211JLF2 6.500E 07/15/2029 DD 07/01/99 AAA 257,381.79 .06 67,280.20 GNMA POOL #0530053 .000 6.209 AAA 104.682 70,612.68 .02 36212CZS3 6.500E 04/15/2031 DD 04/01/01 AAA 70,430.04 .02 YLDANAL YIELD ANALYSIS PAGE t 11 OCSF07522202 2003/09/30 RUN DATE t 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME t 10.31.55 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ B TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- - ------ ------- -------- ------------ ---------- 69,192.13 GNMA POOL #0530290 .000 6.176 AAA 105.254 72,511.20 .02 36212DC31 6.500% 03/15/2031 DD 04/01/01 AAA 72,827.42 .02 135,383.08 GNMA POOL #0537885 .000 6.176 AAA 105.254 142,088.77 .04 36212HREI 6.500% 02/15/2031 DD 02/01/01 AAA 142,495.99 .03 16,205.48 GNMA POOL #0547512 .000 6.176 AAA 105.254 17,008.16 .00 36212YGV9 6.500% 04/15/2031 DD 04/01/01 AAA 17,056.90 .00 128,029.50 GNMA POOL #0547715 .000 6.176 AAA 105.254 135,009.37 .04 36212YN82 6.500% 02/15/2031 DD 02/01/01 AAA 135,598.17 .03 91,658.21 GNMA POOL #0552322 .000 6.176 AAA 105.254 96,198.16 .03 36213ESK3 6.500% 01/15/2032 DD O1/01/02 AAA 96,473.85 .02 727,214.83 GNMA POOL #0552466 .000 6.206 AAA 104.735 763,234.69 .24 36213EW36 6.500% 03/15/2032 DD 03/01/02 AAA 761,645.02 .19 555,614.68 GNMA POOL #0552659 .000 6.177 AAA 105.223 583,134.96 .18 36213E5U6 6.500% 07/15/2032 DD 07/01/02 AAA 584,632.55 .14 569,397.17 GNMA POOL #0561017 .000 6.176 AAA 105.254 597,600.13 .19 36213OG29 6.500% 07/15/2031 DD 07/01/01 AAA 599,312.78 .15 306,886.75 GNMA II POOL #0080395 .000 3.447 AAA 101.524' 304,105.59 .09 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 311,562.32 .08 2,778,689.78 GNMA II POOL #080408X .000 3.449 AAA 101.469 2,750,468.71 .89 36225CN28 6.500% 05/20/2030 DD 05/01/00 AAA 2,819,515.68 .69 3,000,000.00 GTE NORTH INC DEB SER A .000 5.920 Al 101.359 3,063,750.00 .96 362337AD9 6.000% 01/15/2004 DD O1/15/94 A+ 3,040,770.00 .75 5,000,000.00 GENERAL ELEC CAP MTH #TR 00575 .000 5.188 AAA 105.046 5,203,500.00 1.66 36962GZY3 5.450% 01/15/2013 DD 12/06/02 AAA 5,252,300.00 1.29 3,000,000.00 GENERAL MTRS ACCEP CORP SR NT .000 5.793 A3 105.734 3,064,350.00 1.00 370425SD3 6.125% 08/28/2007 DD O8/29/02 BBB 3,172,020.00 .78 3,000,000.00 GOLDMAN SACHS GROUP INC SR NT .000 3.987 AA3 103.453 3,03OtO3O.00 .98 38141GCS1 4.125% 01/15/2008 DD O1/13/03 A+ 3,103,590.00 .76 1,635,000.00 HOUSEHOLD FIN CORP NT .000 5.734 Al 111.187 1,772,820.00 .57 441812JW5 6.375% 10/15/2011 DD 10/23/01 A 1,617,907.45 .45 YLDANAL YIELD ANALYSIS PAGE s 12 OCSF07522202 2003/09/30 RUN DATE s 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME s 10.31.55 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 9 TYPE SECURITY ID SECURITY DESCRIPTION BODE YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- -- ------- ------- -------- ------------ ---------- 3,000,000.00 JP HORGAN CHASE 6 CO SUB NT .000 5.383 A2 106.812 3,127,260.00 1.01 46625HAT7 5.750% 01/02/2013 DD 11/25/02 A 3,204,360.00 .79 3,200,000.00 MORGAN STANLEY NT .000 3.592 AA3 100.921 3,195,648.00 1.02 617446HW2 3.625% 04/01/2008 DD 03/06/03 A+ 3,229,472.00 .79 3,000,000.00 NATIONAL RURAL UTILS COOP FIN 000 6.183 A2 117.265 3,465,480.00 1.11 637432CU7 7.250% 03/01/2012 DD 03/07/02 A 3,517,950.00 .86 5,000,000.00 PHILIP MORRIS COS INC NTS .000 7.336 BAA2 102.234 5,263,000.00 1.62 718154CHO 7.500% 04/01/2004 DD 04/01/97 BBB 5,111,700.00 1.25 3,497,276.20 SBA GTD DEV PARTN 2001-20C 1 .000 5.783 AAA 109.640 3,497,276.28 1.21 83162CLJO 6.340% 03/01/2021 AAA 3,834,413.71 .94 2,504,229.76 SBA GTD PARTN CTFS SBIC-PS 01 .000 6.116 AAA 100.565 2,504,229.76 .96 831641DD4 6.640% 02/10/2011 DD 02/21/01 NR 2,718,727.04 .67 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .000 44.793 CA 15.250 1,600,000.00 .07 909317BC2 6.831% 03/01/2010 DD 08/22/01 A- 244,000.00 .06 20,000,000.00 U S TREASURY NOTES .000 5.510 AAA 113.438 22,620,312.50 7.20 9128272JO 06.250% 02/15/2007 DD 02/15/97 AAA 22,687,500.00 5.57 3,414,810.00 US TREASURY INFLATION INDEX NT .000 3.228 AAA 112.281 3,725,779.05 1.21 9128273T7 3.625% 01/15/2008 DD 01/15/98 AAA 3,834,191.35 .94 14,576,900.00 US TREASURY INFLATION INDEX HT .000 3.391 AAA 114.281 16,209,968.79 5.28 9128274Y5 3.875% 01/15/2009 DD 01/15/99 AAA 16,658,699.97 4.09 57,100,000.00 U S TREASURY NOTES .000 5.283 AAA 108.844 62,782,901.47 19.73 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 62,149,924.00 15.25 12,000,000.00 U S TREASURY NT .000 3.183 AAA 102.120 11,870,156.25 3.89 912828BG4 3.250% 08/15/2008 DD 08/15/03 AAA 12,254,400.00 3.01 3,000,000.00 VERIZON GLOBAL FDG CORP GLOBAL .000 6.254 A2 117.921 3,530,490.00 1.12 92344GAT3 7.375% 09/01/2012 DD 08/26/02 A+ 3,537,630.00 .87 3,500,000.00 VIRGINIA ELEC 6 PWR 01 SER A .000 5.304 A3 108.406 3,487,680.00 1.20 927804ENO 5.750% 03/31/2006 DD 03/27/01 BBB+ 3,794,210.00 .93 16,249,520.00 US TREASURY INFLATION INDEX NT 3 .817 3.068 AAA 110.000 14,322,493.87 5.67 9128272M3 3.375% 01/15/2007 DD 01/15/97 AAA 17,874,472.00 4.39 YLDANAL YIELD ANALYSIS PAGE i 13 OCSF07522202 2003/09/30 RUN DATE i 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME i 10.31.55 PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 15,500,000.00 FEDERAL NATL MTG ASSN DEBS 5.967 6.602 AAA 107.918 16,154,410.00 5.31 31359HFHI 7.125% 02/15/2005 DD 02/14/00 AAA 16,727,317.90 4.11 1,190,327.69 FHLMC MULTICLASS HTG SER E3 A 6.316 3.832 AAA 104.043 1,199,604.37 .39 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 1,246,776.00 .31 833,712.13 GNMA GTD REHIC TR 2000-9 FH 6.320 1.610 AAA 100.652 833,712.13 .26 3837H4NX9 VAR RT 02/16/2030 AAA 839,147.93 .21 9,534.53 GNMA POOL #0500917 6.389 5.757 AAA 104.223 9,050.35 .00 36210SPAO 6.000% 04/15/2029 DD 04/01/99 AAA 9,937.14 .00 40,594.40 GNMA POOL #0506636 6.309 5.757 AAA 104.223 38,523.47 .01 36210YY90 6.000% 04/15/2029 DD 04/01/99 AAA 42,298.14 .01 407,572.69 GNMA POOL #0503380 6.389 5.753 AAA 104.285 386,875.64 .13 36210VF55 6.000% 03/15/2029 DD 03/01/99 AAA 425,037.83 .10 12,734.52 GNMA POOL #0499153 6.389 5.753 AAA 104.285 12,007.84 .00 36210QQES 6.000% 02/15/2029 DD 02/01/99 AAA 13,280.21 .00 474,521.43 GNMA POOL #0496461 6.390 5.753 AAA 104.285 450,424.63 .15 36210MQN4 6.000% 01/15/2029 DD 01/01/99 AAA 494,855.43 .12 127,477.80 GNMA POOL #0491103 6.390 5.753 AAA 104.285 121,004.33 .04 36210FRY4 6.000% 01/15/2029 DD 01/01/99 AAA 132,940.43 .03 13,369.44 GNHA POOL 10486720 6.390 5.753 AAA 104.285 12,690.53 .00 36210AVM6 6.000% 12/15/2028 DD 12/01/99 AAA 13,942.34 .00 27,232.78 GNHA POOL 10497343 6 .390 5.753 AAA 104.285 25,849.87 .00 3621ONP45 6.000% 12/15/2028 DD 12/01/98 AAA 28,399.75 .01 18,066.59 GNMA POOL #0469688 6.391 5.753 AAA 104.285 17,149.14 .00 36209EXR8 6.000% 11/15/2028 DD 11/01/98 AAA 18,840.77 .00 22,978.80 GNMA POOL #0467279 6 .391 5.753 AAA 104.285 21,811.91 .00 36209CCQ7 6.000% 10/15/2028 DD 10/01/98 AAA 23,963.48 .01 42,651.16 GNMA POOL #0457814 6 .391 5.753 AAA 104.285 40,485.27 .01 36208QSB3 6.000% 10/15/2028 DD 10/01/98 AAA 44,478.83 .01 456,573.97 GNMA POOL #0467286 6 .391 5.753 AAA 104.285 433,388.57 .15 36209CCX2 6.000% 10/15/2028 DD 10/01/98 AAA 476,138.90 .12 YLDANAL YIELD ANALYSIS PAGE t 14 OCSF07522202 2003/09/30 RUN DATE : 10/06/03 DISTRICTt LONG-TERM OPERATING RUN TIME t 10.31.55 PAR VALUE YTH AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- -------- ------------ ---------- 569,849.09 GNMA POOL 10465555 6.392 5.753 AAA 104.285 540,911.46 .18 36209AE48 6.000% 09/15/2028 DD 09/01/98 AAA 594,268.04 .15 15,410.30 GNMA POOL #0483452 6.392 5.753 AAA 104.285 14,627.75 .00 36209WBV3 6.000% 09/15/2028 DD 09/01/98 AAA 16,070.66 .00 507,061.96 GNMA POOL #0465546 6.392 5.753 AAA 104.285 481,312.72 .16 36209AET3 6.000% 08/15/2028 DD 08/01/98 AAA 528,790.38 .13 443,140.07 GNMA POOL #0468339 6.392 5.753 AAA 104.285 420,636.88 .14 36209DHQO 6.000% 08/15/2028 DD 08/01/98 AAA 462,129.33 .11 29,506.10 GNMA POOL #0438057 6.393 5.753 AAA 104.285 28,007.76 .00 36207PTN9 6.000% 05/15/2028 DD 05/01/98 AAA 30,770.48 .01 23,429.40 GNMA POOL #0468330 6.393 5.753 AAA 104.285 22,239.62 .00 36209DHF4 6.000% 05/15/2028 DD 05/01/98 AAA 24,433.39 .01 2,972,208.22 FHLMC MULTICLASS CTF SER 1620Z 6.499 5.636 AAA 106.459 2,816,068.28 1.00 3133T17A4 6.000% 11/15/2023 DD 11/01/93 AAA 3,164,153.43 .78 370,815.57 GNMA II POOL 1080088M 6.705 4.292 AAA 101.926 378,927.17 .12 36225CC20 7.375% 06/20/2027 DD 06/01/97 AAA 377,958.22 .09 2,000,000.00 MARSH & MCLENNAN COS INC SR NT 6.717 6.393 A2 103.625 1,992,280.00 .65 57174BABS 6.625% 06/15/2004 DD 06/14/99 AA- 2,072,500.00 .51 3,000,000.00 FORD MTR CR CO GLOBAL LANDMARK 6.739 6.478 A3 103.421 2,995,000.00 .98 345397SJ3 6.700% 07/16/2004 DD 07/16/99 BBB 3,102,630.00 .76 2,500,000.00 COUNTRYWIDE HOME LNS INC NT 6.866 6.602 A3 103.750 2,498,400.00 .82 22237UABO 6.850% 06/15/2004 DD 06/24/99 A 2,593,750.00 .64 262,485.05 GNMA II POOL 10080023 6 .992 5.469 AAA 102.860 266,832.46 .08 36225CAZ9 VAR RT 12/20/2026 DD 22/01/96 AAA 269,992.52 .07 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7 .113 5.687 AAA 116.489 2,030,133.00 .77 31359MEY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,446,261.23 .60 1,000,000.00 FORD MOTOR CR CO NT 7 .582 6.412 A3 105.265 965,170.00 .33 345397GV9 6.750% 05/15/2005 DD 05/24/93 BBB 1,052,650.00 .26 948,212.53 WMP/HUNTOON PAIGE 1000-11150 7 .684 7.161 AAA 104.741 927,619.55 .31 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 993,163.68 .24 YLDANAL YIELD ANALYSIS PAGE : 15 OCSF07522202 2003/09/30 RUN DATE : 10/06/03 DISTRICT: LONG-TERM OPERATING RUN TIME : 10.31.55 PAR VALUE YT'M AT CURRENT MOODY MARKET TOTAL COST/ 9 TYPE SECURITY ID SECURITY DESCRIPTION HOOK YIELD S-P PRICE MARKET VALUE TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 3,000,000.00 PACIFICORP SECD MTN #TR 00115 7.709 6.902 A3 105.765 2,950,530.00 1.00 69512EEU5 7.300% 10/22/2004 DD 10/22/92 A 3,172,950.00 .78 1,600,000.00 ALLSTATE CORP SR NT 7.967 7.183 Al 109.640 1,594,032.00 .55 020002AL5 7.875% 05/01/2005 DD 05/01/00 A+ 1,754,240.00 .43 -__ ------ ----------------- --------- TOTAL FIXED INCOME SECURITIES .381 5.168 307,357,749.31 100.00 314,921,684.11 77.28 -------- ------- ----------------- --------- TOTAL .357 4.846 399,875,302.03 100.00 407,439,237.63 100.00 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2003 Par Value Book Value Market Value Rate Yield Balance September 1,2003 $33,946,098 $33,946,098 $33,946,098 1.632 1.632 Deposits: 9/19/2003 12,600,000 12,600,000 12,600,000 1.632 1.632 Withdrawals: 9/3/2003 (300,000) (300,000) (300,000) 1.632 1.632 9/10/2003 (4,300,000) (4,300,000) (4,300,000) 1.632 1.632 9/17/2003 (2,000,000) (2,000,000) (2,000,000) 1.632 1.632 9/24/2003 (5,700,000) (5,700,000) (5,700,000) 1.632 1.632 Total Withdrawis (12,300,000) (12,300,000) (12,300,000) 1.632 1.632 Balance September 30,2003 $34,246,098 $34,246,098 $34,246,098 1.632 1.632 FAH R COMMITTEE Meeting Date To Bd.of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAHR03-92 14(d Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: FINANCIAL REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2003 GENERAL MANAGER'S RECOMMENDATION Receive and file the FY 2003-04 Financial Report for the First Quarter ended September 30, 2003. SUMMARY Attached in a separately bound document is the District's First Quarter Financial Report for the period ended September 30, 2003. This report is a consolidation of the financial accomplishments of the District through the through the first quarter of the FY 2002-03. Contained within the First Quarter Financial Report are budget summary reviews of the Joint Operating & Working Capital Funds, the Capital Improvement Program, the Revenue Areas, and the self-insurance funds. As indicated within the Overview Section of this report, 24.4 percent, or $18.81 million of the FY 2003-04 net joint operating budget of $77.0 million has been expended. Net cost has increased $4.21 million, or 28.9 percent in comparison with the same period last year primarily due to the increased level of wastewater treatment with full disinfection. The total cost per million gallons at September 30, 2003 is $823.82 based on flows of 22.83 billion gallons, or 248.17 million gallons per day. This is $17.81, or 2.1 percent below the budgeted cost per million gallons of $841 .63. This shortfall is primarily due to expenditures being lower than budget by 2.3 percent, or $0.44 million. This expenditure shortfall is somewhat offset by the fact that flows are 0.7 percent lower than the budget estimate of 250 million gallons per day. PROJECT/CONTRACT COST SUMMARY N/A G:\wp.dta\agenda\Board Agenda Reporls\2003 Board Agenda Reports\1103\Item 14(d).Financial Report.doc Revised: 8/20/98 Page 1 BUDGET IMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1 . FY 2003-04 Financial Report for the Quarter Ended September 30, 2003. G:\wp.dta\agenda\Board Agenda Reports%2003 Board Agenda Reports\1103\Item 14(d).Financial Report.doc Revised: 8/20/98 Page 2 FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAHR03-93 14 e Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources ORIGINATOR: James Matte, Safety and Health Supervisor SUBJECT: Safety Policy, Exposure Control Plan for Bloodborne Pathogens Program Policy GENERAL MANAGER'S RECOMMENDATION Approve SAFETY-POL-113, Exposure Control Plan for Bloodborne Pathogens Program as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program. SUMMARY The District is implementing a written policy to adopt Cal-OSHA requirements for a written exposure control plan for bloodborne pathogens as found in Title 8 of the California Code of Regulations, section 5193. These regulations require a written plan if employees are exposed to blood or body fluids. The District has developed this plan to ensure members of the Medical Unit are adequately protected from these materials. The document presented for your review and adoption represents the Districts written Exposure Control Plan for Bloodborne Pathogens Program that conforms to the elements defined in the California Department of Toxics Substances Control Regulations, Title 22 of the California Code of Regulations. PROJECT/CONTRACT COST SUMMARY Not Applicable BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION Policy required under the Cal-OSHA Regulations, found in Title 8 of the California Code of Regulations, section 5193. r ALTERNATIVES Not Applicable CEQA FINDINGS Not Applicable ATTACHMENTS Attachment 1- Exposure Control Plan for Bloodborne Pathogens Program (SAFETY- POL-113) G:\wp.dta\agenda\Board Agenda RepoRs\2003 Board Agenda Reports\1103\Item 14(e).SAFEIY-POL-113.doc Revised: 8/20/01 Page 2 a b ORANGE COUNTY SANITATION DISTRICT Safety and Health Division SAFETY-POL-113 Exposure Control Plan for Bloodborne Pathogens Program APPROVALS Approved by: Date: Director of Human Resources Approved by: Date: Manager, Human Resources Approved by: Date: Safety and Health Supervisor PROCEDURE REVISION HISTORY Rev. Date Approval This document is controlled when viewed online. When downloaded and printed, this document becomes UNCONTROLLED, and users should check the Safety and Health public folder to ensure that they have the latest version. w Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 Contents 1. Purpose ...............................................................................................3 2. Definitions...........................................................................................3 3. Exposure Determination ....................................................................4 4. General Methods of Compliance .......................................................5 5. Hepatitis B Vaccine.............................................................................7 6. Post Exposure Monitoring and Follow Up ........................................8 7. Review of Exposure Incidents .........................................................10 8. Training and Communication ..........................................................11 9. Medical Records ...............................................................................12 10. Program Administration and Evaluation......................................... 13 11. References ........................................................................................14 12. Attachments......................................................................................14 Number: SAFETY-POL-113 Orange County Sanitation District Revision Number: 0 Exposure Control Plan for Bloodborne Date: November 19, 2003 Pathogens Program Approved by: Lisa Tomko 1 . Purpose In accordance with the Cal-OSHA Bloodborne Pathogens standard 8 CCR 5193, the Orange County Sanitation District (district) has developed the following exposure control plan to eliminate or minimize employee occupational exposure to blood or other potentially infectious materials as detailed in the Bloodborne Pathogens standard. This Plan applies to employees who have been designated part of the Medical Unit. 2. Definitions Blood Human blood, human blood components, and products made from human blood. Bloodborne Pathogenic microorganisms that are present in human blood and Pathogens can cause disease in humans. These pathogens include, but are not limited to, hepatitis B virus (HBV), hepatitis C virus (HCV) and human immunodeficiency virus (HIV). Contaminated The presence or the reasonably anticipated presence of blood or other potentially infectious materials on a surface or in or on an item. Decontamination The use of physical or chemical means to remove, inactivate, or destroy bloodborne pathogens on a surface or item to the point where they are no longer capable of transmitting infectious particles and the surface or item is rendered safe for handling, use, or disposal Exposure A specific eye, mouth, other mucous membrane, non-intact skin, Incident or parenteral contact with blood or other potentially infectious materials that results from the performance of an employee's duties. Rev. 0 Hard Copy Is Uncontrolled Date 11/19/03 3 of 15 g:\wp.dta\agenda\board agenda reports\2003 board agenda reports\1103\item 14(e) 1.doc f Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 Hand washing A facility providing an adequate supply of running potable water, Facility soap and single use towels or hot air drying machines. Occupational Reasonably anticipated skin, eye, mucous membrane, or Exposure parenteral contact with blood or other potentially infectious materials that may result from the performance of an employee's duties. Other Potentially The following human body fluids: semen,vaginal secretions, Infected Materials cerebrospinal fluid, synovial fluid, pleural fluid, pericardial fluid, (OPIM) peritoneal fluid, amniotic fluid, saliva in dental procedures, any other body fluid that is visibly contaminated with blood such as saliva or vomitus, and all body fluids in situations where it is difficult or impossible to differentiate between body fluids such as emergency response. Parenteral Piercing mucous membranes or the skin barrier through such Contact events as needlesticks, human bites, cuts, and abrasions. Sharp Any object used or encountered in the industries covered by subsection (a) that can be reasonably anticipated to penetrate the skin or any other part of the body, and to result in an exposure incident, including, but not limited to, needle devices, scalpels, lancets, broken glass, broken capillary tubes, exposed ends of dental wires and dental knives, drills and burs. Source Individual Any individual, living or dead, whose blood or OPIM may be a source of occupational exposure to the employee. Examples include, but are not limited to, hospital and clinical patients; clients in institutions for the developmentally disabled; trauma victims; clients of drug and alcohol treatment facilities; residents of hospices and nursing homes; human remains; and individuals who donate or sell blood or blood components. Universal An approach to infection control. According to the concept of Precautions Universal Precautions, all human blood and certain human body fluids are treated as if known to be infectious for HIV, HBV, HCV, and other bloodborne pathogens. Work Practice Controls that reduce the likelihood of exposure by defining the Controls manner in which a task is performed. 3. Exposure Determination Cal-OSHA regulations (8 CCR 5193(f)) require that "employers Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 make available the hepatitis B vaccine and vaccination series to all employees who have occupational exposure, and post- exposure evaluation and follow-up for bloodborne pathogens exposure to all employees who have had an exposure incident." Cal OSHA also exempts "Designated first aid providers who have occupational exposure if the following conditions exist: 1. The primary job assignment of such designated first aid providers is not the rendering of first aid. 2. Any first aid rendered by such persons is rendered only as a collateral duty responding solely to injuries resulting from workplace incidents, generally at the location where the incident occurred." In light of this requirement and exemption, the District is designating the following group as having an occupational exposure to bloodborne pathogens. 1. Members of the District's Medical Unit. 4. General Methods of Compliance 1. Universal precautions will be observed at the district in order to prevent contact with blood or other potentially infectious materials. A. This means that all blood or OPIM will be considered infectious regardless of the perceived status of the source individual. 2. The Safety and Health Division in coordination with the Medical Unit conducts ongoing evaluation of tasks and medical devices that carry a risk of exposure and implements safer medical devices whenever feasible. 3. The following work rules apply where there is a potential for contact with blood or OPIM: A. Hand and Body Washing (1) Hand washing facilities are available to employees who are exposed to blood or other potentially infectious materials. (2) Employees shall wash hands after removal of Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 personal protective gloves and whenever there is a likelihood of contamination. In addition, any contaminated skin area will be washed as soon as possible. (3) When hand washing facilities are not readily available, the use of waterless hand washing products is permitted as an interim means of washing the hands or other parts of the body after contamination with blood or OPIM. (4) If blood or other potentially infectious material contacts mucous membranes, those areas shall be washed or flushed with water as appropriate as soon as possible following contact. B. Other Work Practices (1) Eating, drinking, smoking, applying cosmetics or lip balm, and handling contact lenses are prohibited in work areas where there is a reasonable likelihood of occupational exposure. (2) Food and drink must not be kept in refrigerators, freezers, shelves, and cabinets or on countertops or bench tops where blood or other potentially infectious materials are present. (3) Mouth pipetting/suctioning of blood or other potentially infectious materials is prohibited. C. Personal Protective Equipment (PPE) (1) All PPE used at this facility will be provided without cost to employees. (2) PPE will be chosen based on the anticipated exposure to blood or other potentially infectious materials. a. The PPE will be considered appropriate only if it does not permit blood or other potentially infectious materials to pass through or reach the employees' clothing, skin, eyes, mouth, or other mucous membranes under normal conditions of use and for the duration of time, which the protective equipment will be used. Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 (3) Employees will receive training on the appropriate use of PPE provided for specific tasks. (4) The personal protective equipment listed in attachment 1 is provided for workers. (5) If required PPE is not available, contact the Safety and Health Division who will insure that supplies are replenished. D. Housekeeping Contaminated surfaces must be decontaminated by the Medical Unit with an approved disinfectant as soon as possible after contamination with blood or OPIM. 5. Hepatitis B Vaccine 1. Hepatitis B vaccine shall be offered to all members of the Medical Unit, at no cost to the employee unless: A. the employee has previously received the series B. antibody testing reveals that the employee is immune C. medical reasons prevent taking the vaccination; or D. the employee chooses not to participate 2. Hepatitis B vaccine shall be offered to all employees at no cost who have had an exposure to blood or OPIM unless: A. The employee has previously received the series B. Antibody testing reveals that the employee is immune C. Medical reasons prevent taking the vaccination; or D. The employee chooses not to participate 3. Employees will be provided with information on Hepatitis B vaccinations addressing its safety, benefits, efficacy, methods of administration and availability. 4. All occupationally exposed employees are strongly encouraged to receive the Hepatitis B vaccination series and post-vaccination antibody testing. Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 employee following an exposure incident. L. An explanation of the signs and labels and/or color coding required by the standard and used at the District. M. An opportunity for interactive questions and answers with the person conducting the training session. 4. Training records will be completed for each employee upon completion of training. These documents will be kept with the employee's records and will include: A. Dates of the training sessions. B. Contents or a summary of the training sessions. C. Names and qualifications of persons conducting the training sessions. D. Names and job titles of all persons attending the training sessions. 5. Training records will be maintained for a minimum of three (3) years from the date on which the training occurred. 6. Employee training records will be provided upon request to the employee or the employee's authorized representative within 15 working days. 9. Medical Records 1. Medical Records A. The Safety and Health Division is responsible for maintenance of the required medical records. (1) Records are maintained in the Plant No. 1 Safety and Health Division Office. B. Medical records are maintained for each employee with occupational exposure in compliance with 8 CCR 3204 and SAFETY-POL-405, "Access to Employee Exposure and Medical Records" and will include: (1) The name and social security number of the employee a Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 (3) Employees will receive training on the appropriate use of PPE provided for specific tasks. (4) The personal protective equipment listed in attachment 1 is provided for workers. (5) If required PPE is not available, contact the Safety and Health Division who will insure that supplies are replenished. D. Housekeeping Contaminated surfaces must be decontaminated by the Medical Unit with an approved disinfectant as soon as possible after contamination with blood or OPIM. 5. Hepatitis B Vaccine 1. Hepatitis B vaccine shall be offered to all members of the Medical Unit, at no cost to the employee unless: A. the employee has previously received the series B. antibody testing reveals that the employee is immune C. medical reasons prevent taking the vaccination; or D. the employee chooses not to participate 2. Hepatitis B vaccine shall be offered to all employees at no cost who have had an exposure to blood or OPIM unless: A. The employee has previously received the series B. Antibody testing reveals that the employee is immune C. Medical reasons prevent taking the vaccination; or D. The employee chooses not to participate 3. Employees will be provided with information on Hepatitis B vaccinations addressing its safety, benefits, efficacy, methods of administration and availability. 4. All occupationally exposed employees are strongly encouraged to receive the Hepatitis B vaccination series and post-vaccination antibody testing. Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 A. If an employee chooses to decline HB vaccination, the employee must sign a copy of the declination statement. (1) The copy will be kept in the employee's confidential medical record. (2) Employees who decline may request and obtain the vaccination at a later date at no cost. 5. The district shall notify all employees who receive hepatitis B vaccine of the location of the clinic providing the vaccine. A. Employees shall receive vaccine during normal working hours or be compensated during non-working hours. 6. Post Exposure Monitoring and Follow Up 1. Evaluation and Management of Exposure Incidents A. Post-Exposure Management (1) Wounds and skin sites that have been in contact with blood or OPIM should be washed with soap and water; mucous membranes should be flushed with water. (2) Immediately report all exposure incidents to the employee's supervisor or the Safety and Health Division. (3) The Safety and Health Division will provide a doctor for a confidential medical evaluation to all exposed employees. a. It is important that employees receive a prompt medical evaluation because HBIG, hepatitis B vaccine, and HIV post exposure prophylaxis (PEP) are most likely to be effective if administered as soon after exposure as possible. (4) If the employee does not give consent for HIV serological testing during collection of blood for baseline testing, preserve the baseline blood 6 Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 sample for at least 90 days. a. If the exposed employee elects to have the baseline sample tested during this waiting period, perform testing as soon as feasible (5) The person (if known) whose blood or body fluid is the source of an exposure will be tested for HBV, HCV, and HIV infection as soon as feasible. a. When the source is already known to be infected with HBV, HCV, or HIV then testing need not be repeated. (6) Information from the medical record at the time of the exposure (e.g., laboratory test results, admitting diagnosis, or previous medical history) or the source person, will be collected to help confirm or exclude bloodborne infection. (7) HBV, HCV, and/or HIV testing shall be performed if the infection status of the source person is unknown. (8) Results of source testing shall be provided to the employee, and the employee shall be informed of all applicable laws and regulations concerning disclosure of the identity and infectious status of the source. (9) The health department will be consulted in the event that consent for source testing cannot be obtained (Orange County Health Care Agency). B. Health Care Professional Follow-Up 4. The Safety and Health Division will ensure that health care professionals responsible for employee's hepatitis B vaccination and post-exposure evaluation and follow-up are given a copy of Cal-OSHA's bloodborne pathogens standard. 5. The Safety and Health Division will ensure that the health care professional evaluating an employee after an exposure incident receives the following: A. A description of the employee's job duties relevant to r Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 the exposure incident B. Route(s) of exposure C. Circumstances of exposure D. If possible, results of the source individual's blood test E. Relevant employee medical records, including vaccination status 2. The Safety and Health Division will provide the employee with a copy of the evaluating health care professional's written opinion within 15 days after completion of the evaluation. 3. The written opinion for post-exposure evaluation and follow- up will be limited to whether or not the employee has been informed of the results of the health evaluation and of any health conditions which may require further evaluation and treatment. A. All other diagnoses must remain confidential and are not to be included in the written report to the district. 7. Review of Exposure Incidents 1. The employee's supervisor and Safety and Health Division shall review the circumstances of all exposure incidents which will be reviewed to determine: A. Why the exposure incident occurred; B. Type and brand of device involved; C. If procedures were being followed; and D. If procedures, protocols, and/or training need to be revised. 2. If it is determined that revisions need to be made, the Safety and Health Division will ensure that appropriate changes are made to this exposure control plan. 3. Documentation of this evaluation should accompany the exposure report. a Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 8. Training and Communication 1. All employees who have occupational exposure to bloodborne pathogens will receive training at the time of initial assignment and at least annually thereafter. 2. The Safety and Health Division shall be responsible for conducting training. 3. Training will include: A. Information on the epidemiology, symptoms, and transmission of bloodborne pathogen diseases. B. A copy and explanation of the standard. C. An explanation of the District's exposure control plan and how to obtain a copy. D. An explanation of methods to recognize tasks and other activities that may involve exposure to blood and OPIM, including what constitutes an exposure incident. E. An explanation of the use and limitations of engineering controls, work practices, and PPE. F. An explanation of the types, uses, location, removal, handling, decontamination, and disposal of PPE. G. An explanation of the basis for PPE selection. H. Information on the hepatitis B vaccine, including information on its efficacy, safety, method of administration, the benefits of being vaccinated, and that the vaccine will be offered free of charge. I. Information on the appropriate actions to take and persons to contact in an emergency involving blood or OPIM. J. An explanation of the procedure to follow if an exposure incident occurs, including the method of reporting the incident and the medical follow-up that will be made available. K. Information on the post-exposure evaluation and follow- up that the employer is required to provide for the Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 employee following an exposure incident. L. An explanation of the signs and labels and/or color coding required by the standard and used at the District. M. An opportunity for interactive questions and answers with the person conducting the training session. 4. Training records will be completed for each employee upon completion of training. These documents will be kept with the employee's records and will include: A. Dates of the training sessions. B. Contents or a summary of the training sessions. C. Names and qualifications of persons conducting the training sessions. D. Names and job titles of all persons attending the training sessions. 5. Training records will be maintained for a minimum of three (3) years from the date on which the training occurred. 6. Employee training records will be provided upon request to the employee or the employee's authorized representative within 15 working days. 9. Medical Records 1. Medical Records A. The Safety and Health Division is responsible for maintenance of the required medical records. (1) Records are maintained in the Plant No. 1 Safety and Health Division Office. B. Medical records are maintained for each employee with occupational exposure in compliance with 8 CCR 3204 and SAFETY-POL-405, "Access to Employee Exposure and Medical Records" and will include: (1) The name and social security number of the employee Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 (2) A copy of the employee's hepatitis B vaccinations and any medical records relative to the employee's ability to receive vaccination (3) A copy of all results of examinations, medical testing, and follow-up procedures as required by the bloodborne pathogens standard (4) A copy of all health care professional's written opinion(s) as required by the bloodborne pathogens standard C. All employee medical records will be kept confidential and will not be disclosed or reported without the employee's express written consent to any person within or outside the workplace except as required by the standard or other legal provisions. D. Employee medical records shall be maintained for at least the duration of employment plus 30 years. E. Employee medical records will be provided upon request of the employee or to anyone having written consent of the employee within 15 working days. 10. Program Administration and Evaluation This Exposure Control Plan Program shall be evaluated annually to ensure that it is effective in providing adequate protection against blood and OPIM. The following steps shall be followed to conduct this program review: 1. The Safety and Health Division shall determine if regulations or national consensus standards have changed since the last annual program review. A. Review Federal OSHA Standards, interpretations and documents. B. Review consensus standards. 2. The Safety and Health Division shall convene a Safety Sub Committee to review the current Exposure Control Plan, proposed changes to State and Federal Regulations and national consensus standards and recommend changes to Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 the district's Exposure Control Plan as required. 3. The Safety and Health Division shall have 30 days to make minor program changes, and 60 days in the case of major program re-writes. 4. Bloodborne Pathogen Program and Exposure Control Plan reviews shall start by October 15 of each year. 11 . References SAFETY-POL-405, Employee Access to Medical Records Title 8, California Code of Regulations, Section 5193, Bloodborne Pathogens Title 8, California Code of Regulations, Section 3204, Access to Employee Exposure and Medical Records 12. Attachments Attachment 1 : Personal Protective Equipment Available to Medical Unit Members Exposure Control Plan for Bloodborne Pathogens SAFETY-POL-113 G� Attachment 1 Personal Protective Equipment Available to Medical Unit Members PPE if Use Guidelines Disposable Gloves Gloves shall be worn where it is reasonably anticipated that employees will have hand contact with blood, other potentially infectious materials, non-intact skin, and mucous membranes. Disposable gloves used at this facility are not be washed or decontaminated for re-use and are to be replaced as soon as practical when they become contaminated or as soon as possible if they are torn, punctured, or when their ability to function as a barrier is compromised Safety Glasses w/side shields Appropriate face and eye protection must be worn when splashes, sprays, spatters, or droplets of blood or other potentially infectious materials pose a hazard to the 11 eyes, nose or mouth Apron Gowns, aprons, and other protective body clothing shall be worn whenever there is a risk of splash to the body Other All garments, which are penetrated by blood, shall be removed immediately or as soon as possible. All personal protective equipment will be removed and placed in a designated area or container prior to leaving the work area FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAHR03-94 14(f) Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources SUBJECT: Amended Deferred Compensation Plan GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 03-27, Authorizing the Director of Human Resources to Appoint or Employ Agents or Advisors to Implement and Administer District's Deferred Compensation Plan Loan Program. SUMMARY In May 2003, the Board of Directors adopted the Amended Deferred Compensation Plan for officers and employees of the District. Within that amended plan is a loan provision whereby participants may take a loan from their account. Tonight we are seeking Board approval for the three providers Lincoln National, Valic and International City/County Management Association (ICMA) to act as plan administrators solely for the purpose of administering the loan provision. The Director of Human Resources would remain plan administrator of the deferred compensation program as a whole. PROJECT/CONTRACT COST SUMMARY Loans would be repaid by the participants directly to the appropriate provider including interest. There will be no cost to the District to administer this program and no fees to be paid to the providers. BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1 . Proposed Resolution G:\wp.dta\.lgenda\Board Agenda Reports\2003 Board Agenda Reports\1103\I1em 14(f).Deferred Comp.doc Revised 10.28.03 Page 2 r A RESOLUTION NO. 03-27 AUTHORIZING THE DIRECTOR OF HUMAN RESOURCES TO APPOINT OR EMPLOY AGENTS OR ADVISORS TO IMPLEMENT AND ADMINISTER DISTRICT'S DEFERRED COMPENSATION PLAN LOAN PROGRAM A RESOLUTION OF THE BOARD OF DIRECTOS OF ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE DIRECTOR OF HUMAN RESOURCES TO APPOINT OR EMPLOY AGENTS OR ADVISORS TO IMPLEMENT AND ADMINISTER THE DISTRICT'S DEFERRED COMPENSATION PLAN LOAN PROGRAM WHEREAS, on May 28, 2003, the Board of Directors adopted Resolution No. 03-10, approving the Orange County Sanitation District Amended Deferred Compensation Plan [2003] for Officers and Employees of the District ("Plan"); and WHEREAS, pursuant to the Plan, the District appointed the Director of Human Resources to act as the Plan Administrator; and WHEREAS, the Plan authorizes the Plan Administrator to make loans on behalf of the District from the Trust Fund to Plan Participants, according to specific terms and conditions as the District may prescribe; and WHEREAS, the Plan further authorizes the Plan Administrator to appoint or employ for the Plan any agent or advisor necessary to assist in discharging the Plan Administrator's duties; and WHEREAS, the Plan Administrator desires to employ the services of agents or advisors to implement and administer the District's Deferred Compensation Plan Loan Program. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The above Recitals are true and correct. Section 2: That pursuant to Exhibit"A" of the District's Deferred Compensation Plan (Resolution No. OCSD 03-10), the Plan Administrator is hereby authorized to appoint or employ the services of Lincoln National, Valic and International City/County Management Association to act as agents or advisors for the purpose of implementing and administering the District's Deferred Compensation Plan Loan Program. Section 3: The Plan Administrator, or her designee, is hereby authorized to execute, on behalf of the District, any and all documents necessary to effect said Loan Program, with the approval as to form by the District's General Counsel. PASSED AND ADOPTED at a regular meeting of the Board of Directors held November 19, 2003. CHAIR ATTEST: BOARD SECRETARY GA%vp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103Utem 14(Q.t.doc Revised 10.28.03 Page 2 FAHR COMMITTEE Meeting Date To 11/12/03 11/1/19/03 AGENDA REPORT Item Number Item Number FAHR03-95 14 Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources Originator: Jeff Reed, Human Resources Manager SUBJECT: Classification Structure Adjustments GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 03-28, Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual, providing for: 1 . Create the Automotive/Heavy Equipment Assistant classification at pay range 53 ($16.772 - $20.965). 2. Delete the Lead Collection Facilities Worker classification at pay grade 66 ($23.123 - $28.904) SUMMARY From time to time, adjustments need to be made to classification structures. New classifications can be added and existing classifications deleted based on the changing needs of the organization. Staff is proposing two adjustments that need to be made to the classification and compensation structure. 1. During the FY03/04 budget process, the Plant Facilities Maintenance Division submitted justification for an additional position to serve as a motor pool assistant/dispatcher. This position would assist with washing, inspecting and checking motor pool vehicles in and out, data entry and entry level automotive work; work currently being performed by higher level employees. The additional headcount was approved during the budget process. Survey data for this classification for the thirteen comparison agencies places the range maximum at pay grade 53 or approximately 20 below the existing Mechanic classification. 2. For the past several years, employees in the job family of Collection Facilities Worker have been transitioning to the Maintenance Worker, Mechanic, Senior Mechanic and Lead Mechanic classifications through the reclassification or promotional processes. At this time there are no incumbents in the Lead Collection Facilities Worker classification and it can be deleted from the classification listing. Human Resources Policy C10.10 Exhibit A, Salary Schedule has been updated to reflect the proposed modifications and is attached for review and acceptance as Attachment 2. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY There is no additional cost for these proposed changes to the classification structure. The cost for the position of motor assistant/dispatcher was already included in the FY03/04 budget process. BUDGETIMPACT ® This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1 . Resolution No. OCSD 03-28. 2. Human Resources Policy and Procedure C10.10, Exhibit A, Salary Schedule. G:\wp.dta\agenda\Board Agenda Repons\2003 Board Agenda Repons\1101Item 14(g).HRP&P.doc Revised: 8120101 Page 2 t RESOLUTION NO. OCSD 03-28 AMENDING RESOLUTION NO. OCSD 98-33 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AMENDING HUMAN RESOURCES POLICIES AND PROCEDURES ********************* The Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That Exhibit "A" of Resolution No. OCSD 98-33 is hereby amended by amending Policy No. C10.10, Classification and Compensation set forth in Attachment No. 1, attached hereto and incorporated herein by reference. Section 2: That all other terms and conditions of Resolution No. OCSD 98-33, as previously recommended, shall remain in full force and effect. Section 3: That all future amendments to Resolution No. OCSD 98-33 be made by Resolution. PASSED AND ADOPTED at a regular meeting held November 19, 2003. Chair ATTEST: Board Secretary G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 14(g).1.doc Exhibit A Attachment 2 Orange County Sanitation District Classification and Compensation Plan Sorted by Bargaining Group CMMS,Technician II 75 $28.874 $32.483 $36.092 Non-Exempt Operations&Main(501) Lead Electrical Technician 75 $28.874 $32.483 $36.092 Non-Exempt Operations&Main(501) Lead Instrumentation Technician 75 $28.874 $32.483 $36.092 Non-Exempt Operations&Main(501) Lead Power Plant Operator 75 $28.874 $32.483 $36.092 Non-Exempt Operations&Main(501) CMMS Technician 1 71 $26.155 $29.425 $32.694 Non-Exempt Operations&Main(501) Electrical Technician II 71 $26.155 $29.425 $32.694 Non-Exempt Operations&Main(501) Instrumentation Technician II 71 $26.155 $29.425 $32.694 Non-Exempt Operations&Main(501) Lead Mechanic 71 $26.155 $29.425 $32.694 Non-Exempt Operations&Main(501) Lead Welder/Fabricator 71 $26.155 $29.425 $32.694 Non-Exempt Operations&Main(501) Power Plant Operator II 71 $26.155 $29.425 $32.694 Non-Exempt Operations&Main(501) Senior Plant Operator 71 $26.155 $29.425 $32.694 Non-Exempt Operations&Main(501) Machinist 68 $24.286 $27,322 $30.358 Non-Exempt Operations&Main(501) Automotive/Heavy Equipment Technician 67 $23.700 $26.663 $29.625 Non-Exempt Operations&Main(501) Equipment Operator 67 $23.700 $26.663 $29.625 Non-Exempt Operations&Main(501) Senior Mechanic 67 $23.700 $26.663 $29.625 Non-Exempt Operations&Main(501) Welder/Fabricator 67 $23.700 $26.663 $29.625 Non-Exempt Operations&Main(501) 66 $23A23 $26 8a3 $28:904 Nea-E� Lead Facilities Worker 66 $23.123 $26.013 $28.904 Non-Exempt Operations&Main(501) Plant Operator 66 $23.123 $26.013 $28.904 Non-Exempt Operations&Main(501) Power Plant Operator 1 66 $23.123 $26.013 $28.904 Non-Exempt Operations&Main(501) Electrical Technician 1 65 $22.555 $25.375 $28.194 Non-Exempt Operations&Main(501) Instrumentation Technician 1 65 $22.555 $25.375 $28.194 Non-Exempt Operations&Main(501) Senior Maintenance Worker 64 $22.006 $24.757 $27.508 Non-Exempt Operations&Main(501) Facilities Worker/Builder 62 $20,945 $23,563 $26.181 Non-Exempt Operations&Main(501) Facilities Worker/Painter 62 $20.945 $23.563 $26.181 Non-Exempt Operations&Main(501) Mechanic 61 $20.432 $22.986 $25.540 Non-Exempt Operations&Main(501) Maintenance Worker 60 $19.938 $22.431 $24.923 Non-Exempt Operations&Main(501) Control Center Technician 58 $18.978 $21.351 $23.723 Non-Exempt Operations&Main(501) Operator-In-Training 58 $18.978 $21.351 $23.723 Non-Exempt Operations&Main(501) utomotivetHeavyEqutpm�irtAsetstartt '.3ir x '.�, ' `S8 «$1r6.T72'�, . ,i1S 89', r$20.9S5r k'Noiti=E r }it.. 6' rati0iis'8'(lilafii'(5�)',; FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAHR03-96 14(h) Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Jeff Reed, Human Resources Manager SUBJECT: 2003 November Reclassifications and Equity Adjustments GENERAL MANAGER'S RECOMMENDATION Approve the reclassifications of eight District employees, the upgrading of one vacant position and an equity adjustment for one employee. SUMMARY According to Human Resources Policy and Procedure C10.10, reclassification requests are considered twice a year, during the annual budget process and again in November. Reclassification paperwork was submitted on a total of eleven positions; nine of these positions have incumbents and the remaining two were for upgrades of existing, vacant positions. In addition to the reclassification requests, four equity adjustment requests were submitted. Human Resources reviewed the justification for each position and discussed with the appropriate Department Head for concurrence. Subsequently, Human Resources is recommending that ten of the requests be approved (Attachment 1). Five of the requests will result in classification changes for current employees effective immediately. These five employees have met the four criteria outlined in the Reclassification Guidelines which are summarized below: 1. The incumbent has been in the position that has been reclassified for at least 6 months 2. The incumbent is qualified for the classification to which the position was classified 3. The incumbent has been performing the duties of the classification to which the position was classified for at least 6 months 4. The incumbent's classification is not being reclassified from a non-supervisory to a supervisory classification Four of the requests will result in either future reclassifications (minimum requirements and/or successful completion of test must be achieved) or promotional opportunities (adhering to Human Resources Policy and Procedure B150.00). Rev,sed. Of,04 03 Page 1 PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY The additional cost for reclassifications and position upgrades will not be greater than $30,352 for the remainder of FY03/04. BUDGET IMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ® This item has not been budgeted. (sufficient funds exist). ❑ Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES Employees will not be reclassified and their duties will be reviewed and adjusted to be consistent with their current classifications. Vacant positions will remain the same. CEQA FINDINGS N/A ATTACHMENTS 1. Reclassifications/Equity Adjustments Submitted For November 2003 Cycle Revised: 06/04/03 Page 2 A17ACHMENT1 RECLASSIFICATIONS/EQUITY ADJUSTMENTS SUBMITTED FOR NOVEMBER 2003 CYCLE FY03I04 Employee Division Current Title Propose Title Recommendation Costs Cabral, Jennifer 130 Public Information Specialist Sr Public Information Specialist Deny, does not meet the minimum qualifications for n/a experience Baez, Jesus 230 Storekeeper I Storekeeper II Approve reclassification $1,400 Tolsma, Kimberly 520 Human Resources Assistant Human Resources Analyst Approve reclassification $1,605 Morrison, Peter 530 Safety & Health Representative Sr Safety &Health Representative Approve reclassification upon successful completion $2,474 of certification program Min, Dong 632 Senior Laboratory Analyst Principal Laboratory Analyst Approve reclassification $2,143 Kleinbergs, Mila 640 Associate Engineer III Engineer Approve reclassification for March 2004 $1,423 Sullivan, Moira 850 Library Technician Engineering Assistant I Approve reclassification $2,049 Lopez, Pinky 910 Administrative Assistant Executive Assistant Approve reclassification for January 2004 $1,364 Dumity, Robert 930 IT Analyst III Senior IT Analyst Approve reclassification $2,712 No incumbent 930 Senior IT Analyst Principal IT Analyst Deny request to upgrade position $0 No incumbent 930 IT Technician II IT Analyst III Approve upgrade of position,will be posted as a $13,418 promotional opportunity Jones, Larry 420 CMMS Technician II Equity adjustment Deny equity adjustment n/a Hamilton, Robert 430 CMMS Technician II Equity adjustment Deny equity adjustment n/a Matthews,Terry 850 CMMS Technician II Equity adjustment Approve 1 step equity adjustment $1,764 Reeves, Richard 1 850 CMMS Technician II lEguity adjustment IDeny equity adjustment n/a $30,352 11/12/2003 FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/12/2003 11/19/2003 AGENDA REPORT Item Number Item Number FAHR03-97 14(i) Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael White, Controller SUBJECT: ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE YEAR ENDED JUNE 30, 2003 GENERAL MANAGER'S RECOMMENDATION Receive, file and approve the District's Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2003. prepared by staff and audited by Moreland and Associates, Certified Public Accountants. SUMMARY The District's independent auditors, Moreland & Associates, have completed their examination of the District's financial statements for the year ended June 30, 2003, and have again issued an unqualified opinion. Each year, the FAHR Committee reviews the results of the audit and the corresponding Auditor's report to the Committee. Michael Moreland, Partner, will attend the meeting to respond to any questions of Directors. This year, staff has again prepared the Comprehensive Annual Financial Report that includes the audited financial statements. For the last nine years. the District has earned the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA). This year's report will again be submitted to GFOA for their review in anticipation of another award. The Comprehensive Annual Financial Report, including the Auditor's opinion letter. the Auditor's Report to the Committee, the Auditor's Report on Compliance and on Internal Control Over Financial Reporting, and the Auditor's Appropriations Limit Report are attached. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 14(i).CAFR.doc Revised: 8/20/98 Page 1 ADDITIONAL INFORMATION ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1 . Comprehensive Annual Financial Report for the year ended June 30, 2003. 2. Report on Compliance and on Internal Control Over Financial Reporting. 3. Auditors' Report to the FAHR Committee. 4. Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets. G:1wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reportsl 103\Item 14(i).CAFR.doc Revised: 8120/98 Page 2 1201 DOVE STREET,SUITE 680 9 '�„ r� ,ff _ NEWPORT BEACH,CALIFORNIA 92660 Moreland C7 tXYflO( i1uY. (949)221-0025 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE,SUITE 260 SAN MARCOS,CA 92069 (760)7523390 August 28, 2003 The Board of Directors of the Orange County Sanitation District Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Basic Financial Statements Performed in Accordance With Government Auditing Standards We have audited the basic financial statements of the Orange County Sanitation District, (District) as of and for the year ended June 30, 2003, and have issued our report thereon dated August 28, 2003. We conducted our audit in accordance with auditing standards generally accepted in the United'States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the District's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the District's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parties. 1201 DOVE STREET,SUITE 680 oreland � NEWPORT BEACH,CALIFORNIA 92660 M (949)221-0025 CERTIRED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE,SUITE 260 SAN MARCOS,CA 92069 (760)752-3390 August 28, 2003 The Finance,Administration and Human Resources Committee of the Orange County Sanitation District We have audited the basic financial statements of the Orange County Sanitation District, (District) for the year ended June 30,2003, and have issued our report thereon dated August 28, 2003. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accepted Auditing Standards and Government Auditing Standards Our responsibility as described by professional standards is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors,irregularities, or illegal acts,including fraud and defalcations,may exist and not be detected by us. As part of our audit,we considered the internal control of the District. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the District's compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Other Information in Documents Containing,Audited Financial Statements Our responsibility for other information in documents containing the District's basic financial statements and our report thereon does not extend beyond financial information identified in our report, and we have no obligation to perform any procedures to corroborate other information contained in these documents. We have, however, read the other information included in the District's comprehensive annual financial report; and no matters came to our attention that cause us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or its manner of presentation, appearing in the financial statements. The Finance,Administration and Human Resources Committee of the Orange County Sanitation District August 28,2003 Page 2 Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. We will advise management about the appropriateness of accounting policies and their application. The significant accounting policies of the District are described in Note 1 to the basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions during the year that were both significant and unusual, or transactions for which there is a lack of authoritative guidance or consensus. Management Judgments and Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based upon management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were the liabilities associated with general liability and workers' compensation claims. Management's estimate of the claims payable liabilities related to general liability and workers' compensation claims is based on reports prepared by third party administrators summarizing the estimated liability for workers' compensation and the reports prepared by District staff summarizing historical loss levels for general liability claims against the District. We evaluated the key factors and assumptions used to develop liabilities associated with general liability and workers' compensation claims recorded in determining that they are reasonable in relation to the financial statements taken as a whole. Audit Adjustments For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements that, in our judgment,may not have been detected except through our auditing procedures. An audit adjustment may or may not indicate matters that could have a significant effect on the District's financial reporting process (that is, cause future financial statements to be materially misstated). We proposed no adjustments that indicate matters that could have a significant effect on the District's financial reporting process. 2 The Finance,Administration and Human Resources Committee of the Orange County Sanitation District August 28,2003 Page 3 Disagreements With Management There were no disagreements with management on financial accounting, reporting or auditing matters that, if not satisfactorily resolved, would have caused a modification to our auditors' report on the District's financial statements. Consultation With Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Major Issues Discussed With Management Prior to Retention We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the District's auditors. These discussions occurred in the normal course of our professional relationship, and our responses were not a condition to our retention. This information is intended solely for the information and use of the Committee, Board of Director and management of the District and is not intended to be and should not be used by anyone other than these specified parties. 3 1201 DOVE STREET,SUITE 680 NEWPORT BEACH,CALIFORNIA 92660 Moreland & ram "4r,. (949)221-0025 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE.SUITE 260 SAN MARCOS.CA 92069 (760)752-3390 August 28, 2003 The Finance,Administration and Human Resources Committee of the Orange County Sanitation District Independent Accountants'Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets We have performed the procedures enumerated below to the accompanying Appropriations Limit worksheet No. 6 (or other alternative computation) of the Orange County Sanitation District,(District)for the year ended June 30,2003. These procedures,which were agreed to by the District and the League of California Cities (as presented in the League publication entitled Article UIIB Appropriations Limitation Uniform Guidelines),were performed solely to assist the District in meeting the requirements of Section 1.5 of Article XIHB of the California Constitution. The District's management is responsible for the Appropriations Limit worksheet No. 6 (or other alternative computation). This agreed-upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently,we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1 We obtained the completed worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the Board of Directors. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the Board of Directors. Finding: No exceptions were noted as a result of these procedures 0 The Finance,Administration and Human Resources Committee of the Orange County Sanitation District August 28,2003 Page 2 2. For the accompanying Appropriations Limit worksheet No. 6, we added line A, last year's limit, to line E,total adjustments, and compared the resulting amount to line F, this year's limit. Finding: No exceptions were noted as a result of these procedures. 3. We compared the current year information presented in the accompanying Appropriations Limit worksheet No.6 to the other worksheets described in No. 1 above. Finding: No exceptions were noted as a result of this procedure. 4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet No.6 to the prior year appropriations limit adopted by the Board of Directors during the prior year. Finding: No exceptions were noted as a result of this procedure. We were not engaged to and did not conduct an examination,the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet No.6(or other alternative computation). Accordingly, we do not express such an opinion. Had we performed additional procedures,other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year,as defined by Article X M-B of the California Constitution. This report is intended solely for the information and use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parries. ORANGE COUNTY SANITATION DISTRICT ' APPROPRIATIONS LIMIT WORKSHEET#6 FY 2002—2003 BUDGET AMOUNT A. LAST YEAR'S LIMIT, as adopted $58,553,000 B. ADJUSTMENT FACTORS 1. Population % 1.45% 2. Inflation % 0.43% Total Adjustment% 1.890/. C. ANNUAL ADJUSTMENT$ $1,107,000 D. OTHER ADJUSTMENTS: Assumed Responsibility- Booking Fees Property Tax Collections - (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total - E. TOTAL ADJUSTMENTS $1,107,000 F. CURRENT YEAR LIMIT $59,660,000 FAH R COMMITTEE Meeting Date To 8d.of Dir. 11/12/03 11/19/03 AGENDA REPORT Item Number Item Number FAFIR03-98 14 Orange County Sanitation District FROM: Gary G. Streed, Director of Finance SUBJECT: DEBT SERVICE RESERVE FUND INVESTMENT GENERAL MANAGER'S RECOMMENDATION Authorize staff to invest the Debt Service Reserve Fund for the 2003 Certificates of Participation through a competitive selection process to be conducted by the District's independent Financial Advisor, Public Resources Advisory Group, in accordance with the District's Investment Policy. SUMMARY The 2003 Certificate of Participation issue resulted in a Debt Service Reserve Fund of nearly $27 million. This fund is managed by the Trustee and is segregated from the funds under the control of the District. Currently, these funds are invested very short-term and very safely. The interest earnings on these funds are well below the fixed rate that we pay on the COPs. Longer term investments will provide higher interest earnings, potentially even higher than our COP costs. Subject to certain limitations. this "arbitrage" is legal, generally because the earnings on our construction proceeds from the COP issue will be so low. Public Resources Advisory Group, and others, have proposed various investment vehicles. PRAG has suggested the lowest cost and least risky combination. They have also proposed a strategy that will allow the District to take advantage of anticipated increased interest rates in the near future. The enclosed Staff Report explains the different options and risks and recommends the PRAG proposal. PRIOR COMMITTEE/BOARD ACTIONS The 2003 Certificates of Participation were authorized and issued in August, 2003. PROJECT/CONTRACT COST SUMMARY The costs to conduct the bidding process will be paid to PRAG by the winning bidder. There will be minor legal costs, less than $10,000. to prepare the necessary documents. BUDGETIMPACT ® This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 140).DebtServResFund.doc Revised: 06/04/03 Pagel All investments involve certain risks. Generally these risks are expected to increase as the anticipated yield increases. This discussion will be limited to the three major investment risk factors that we see in the alternative DSRF investment options, principal risk, interest rate risk and counterparty risk. A brief description of each of these risks is shown in the table below. Type of Risk I Description of Risk Principal Risk Risk that the investment may become devalued and worth less than face value before it is redeemed Interest Rate Risk Risk that interest rates may have declined when an investment matures and a new investment must be purchased at a lower yield Counterparty Risk Risk that the security provider will not be able to perform, subjecting the District to principal and interest rate risk Each of the investments briefly discussed above has a varying exposure to each of these three types of risk. Some are more exposed to one or more, and others are less exposed to those or to others. The following table provides a brief and simplistic overview of these relationships. Investment Principal Risk Interest Rate Risk Counterparty Risk Cash None Yes. Short term rates None will change regularly. Short-term Securities Some. As interest Yes. As securities None. Investments are rates increase, the mature and proceeds typically"Federal Debt". value of the DSRF need to be reinvested decreases. at the current rates. Rolling Treasuries or None. Investments Yes. Upon failure of Yes. Mitigated by Agencies/ Forward are "Federal Debt". counterparty with collateral. rating Delivery Agreement insufficient collateral. downgrade provisions and possessing security Guaranteed Some. Mitigated by Some. Only if Yes. Mitigated by Investment Contract collateral counterparty fails or collateral and rating (GIC) requirements, but GIC is shorter than downgrade provisions. counterparty can fail. debt repayment. ALTERNATIVES Alternatives are discussed in the enclosed Staff Report. CEQA FINDINGS N/A ATTACHMENTS 1) Staff Report G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103U1em 140).DeblSe"ResFund.doc Revised: 06/04/03 Page 2 M1� SANITAI � o 9��bC_7 l�Me THE N November 12, 2003 STAFF REPORT 2003 COPs Debt Service Reserve Fund Preliminary Staff Report re Investing the DSR Background In August 2003, the District issued $280 million of certificates of participation (COPs)to partially fund the capital improvement program for 2003-04, and to reimburse reserves for some capital outlay in the recent past. Approximately 10% of the original issue was deposited with the Trustee as a Debt Service Reserve Fund (DSRF). This$27 million provides the certificate holders with added security in the unlikely event of a shortfall or untimely District installment payments. Subject to certain legal constraints, the DSRF can be invested so that interest earnings can completely offset the costs of borrowing to fund the DSRF. In the case of the 2003 COPs, earnings in excess of the cost may be allowable because of the expected negative arbitrage on the Construction Fund. Investment Options The investment of the DSRF must comply with the District's investment policy and with the terms of the COP issue, including any special requirements of the COP insurer. Perhaps most importantly, the investment must meet our three policy priorities of safety, liquidity and yield, in that order. As always, these three priorities are somewhat at conflict, especially in today's low interest rate environment. The first two are easily met by investing in cash or in short- term securities. The downside of this approach is that these very short-term rates today are much lower than the cost of the COPs and that this "interest rate risk"or "reinvestment risk" exposure, would occur regularly as the short-term securities matured and the resulting cash would need to be reinvested. Of course, if short-term interest rates increase significantly over the next 30 year period, this risk could actually become an advantage. However, it seems to be much more likely (and prudent to assume) that the earnings from this strategy would not provide the maximum allowable returns over time, especially given the current low short-term interest rate environment. Longer term investments will provide greater yields. These longer term investments could be for terms from 5-years to 30-years, to match the repayment schedule. Several longer term options are available and one common option for borrowers is to enter into a "guaranteed investment contract" (GIC) with a highly-rated collateralized counterparty. An alternative that provides most of the benefits of a long-term investment with less of the risks is a Forward Delivery Agreement. OCSD P.O.Box 8127 Foumain Valley.CA 92728-8127 (714)962-2411 Debt Service Reserve Fund Investment P Page 2of5 November 19, 2003 Risk Analysis All investments involve certain risks. Generally these risks are expected to increase as the anticipated yield increases. This discussion will be limited to the three major investment risk factors that we see in the alternative DSRF investment options, principal risk, interest rate risk and counterparty risk. A brief description of each of these risks is shown in the table below. Type of Risk Description of Risk Principal Risk Risk that the investment may become devalued and worth less than face value before it is redeemed Interest Rate Risk Risk that interest rates may have declined when an investment matures and a new investment with a lower yield must be purchased Counterparty Risk Risk that the security provider will not be able to perform, subjecting the District to principal and interest rate risk Each of the investments briefly discussed above has a varying exposure to each of these three types of risk. Some are more exposed to one or more and others are less exposed to those or to others. The following table provides a brief and simplistic overview of these relationships. Investment Principal Risk Interest Rate Risk Counterparty Risk Cash None Yes. Short term rates None will change regularly. Short-term Some. As interest Yes. As securities None. Investments are Securities rates increase, the mature and proceeds typically"Federal Debt". value of the DSRF need to be reinvested decreases. at the current rates. Rolling None. Investments Yes. Upon failure of Yes. Mitigated by Treasuries or are"Federal Debt'. counterparty with collateral and rating Agencies/ insufficient collateral. downgrade provisions& Forward Delivery possession of the Agreement security. Guaranteed Some. Mitigated by Some. Only if Yes. Mitigated by Investment collateral counterparty fails or collateral and rating Contract (GIC) requirements, but GIC is shorter than downgrade provisions. counterparty can fail. debt repayment period. While not traditionally considered an investment related risk, there is another factor that affects these options differently. This is the opportunity to take the cash out of the DSRF and to provide the certificate holders with the security they desire by purchasing an insurance policy. These policies are typically called DSRF surety policies. These policies are attractive when their premium is less than the cost of maintaining the DSRF, they are not attractive if the DSRF earnings are greater than the cost of funds. However, Debt Service Reserve Fund Investment Page 3 of 5 November 19, 2003 they can be a fairly low-cost source of funds if the DSRF balance is needed for the capital improvement program in a future high interest rate environment. In a rising interest rate environment, the longer term alternatives, such as the GIC, would be at a disadvantage should the District wish to substitute a surety for the DSRF cash. The reason is that the counterparty would demand to be made whole for its future investment earnings (arbitrage) decline that would result from losing a relatively low-cost (compared to the then-current interest rates) source of investment funds from the District's DSRF deposit. Performance or Yield DSRF investments that earn a variable rate of interest may be expected to continue to earn low rates for the foreseeable future, causing the District to generate substantial "negative arbitrage." "Negative arbitrage" is the term applied to the situation where the cost to borrow funds exceeds the interest earned from investing those funds. Maintaining the DSRF in "cash" will certainly be a variable rate investment as the investments will change each day. This will be the most costly, but safest option for the District. Currently this option would result in a cost to the District of about 3.5%. Short-term securities can also be considered as earning a variable rate of interest as they would mature every six months to coincide with the principal and interest payments on the new COPs. The funds from the maturity, or sale, of the securities would need to be invested at whatever the current interest rate would be at that time. Currently this option would result in a cost to the District of about 3.0%. Rolling Treasury or Agency Agreements are a relatively new product in the municipal market; they have been around for only about 10 years. These are also sometimes called a Forward Delivery/Purchase Agreement. Typically these agreements allow an issuer to earn a fairly high fixed-rate for the life of the agreement. While the agreement is long-term, there are certain provisions that look more like a short-term agreement. On every payment date the provider, or counterparty, is required to deliver cash or securities that will mature on or before the next maturity date in an amount at least equal to the debt service reserve requirement. In this way, the District has a short-term investment that will mature when needed and is expected to be replaced when it is not. The provider expects to have stream of income from the sale of the short-term investment for 30 years and offers a long-term rate. If the provider goes out of business, the District still has the short-term securities. Currently this option would provide minimal positive arbitrage on the DSRF of about .2%. The uncollateralized GIC alternative provides the greatest potential yield to the District. Of course, that comes with the highest risk. Existing District GICs contain provisions to protect the District from these risks and thus have reduced the potential yield. Most significant of these protections is requiring that the counterparty provide collateral for the DSRF and further requiring the counterparty to provide additional collateral or to refund the principal plus accrued interest if their credit rating is downgraded. These collateral requirements change the nature of the GIC into a collateralized GIC. The DSRFs for other District COPs are currently in collateralized GICs. The major difference between the GIC and the FDA is who has possession of the security. In a GIC, the counterparty Debt Service Reserve Fund Investment Page 4 of 5 November 19, 2003 ` has possession and in the event of default, the District could lose the principal. Currently this option would provide minimal positive arbitrage on the DSRF of about .2%. Cost to Obtain an Investment As might be expected, the cost to obtain these various investment options differs for each. Generally the cost increases as the potential reward increases. For example, the out-of-pocket cost to keep the DSRF in cash, or daily repurchase agreements, is nearly nothing and is included in the Trustee's fees. The cost to obtain a GIC is somewhat higher as bid specifications must be prepared and a competitive selection process must be completed. The cost of the process is paid by the winning investment provider; the District does not pay anything other than minor legal costs. Of course the provider adjusts the interest bid to recover costs, thus effectively reducing the District's income. Staff has received proposals to solicit and select a provider for reduced rates that range from $25,000 to $45,000. Procurement Options The selection of the investment provider will be through a competitive process, it will not be a sole source. The investment provider will meet the credit standards that the District establishes. The investment agreement will contain the terms that the District specifies. The options revolve around who conducts the competitive process and is paid the fee the District agrees to by the winning investment provider. The firm that provides this service is called a "bidding agent." Staff has not conducted a competitive process to select a bidding agent, but we do have qualified proposals. The fees vary as noted above, but are minimal compared to the investment potential over 30 years, approximately$40 million, and are paid by the investment provider in any case. This procurement seems to be a perfect example of when a decision should be based upon service rather than cost. One proposal has been received from the Grant Street Group using their MuniAuction website. This firm is located in Pittsburg. Their unique product allows potential investment providers to input their bids into a website and to be immediately advised of their ranking among the other bidders. This process is expected to result in an on-line auction with increasing rates until the close of bids. Another proposal has been received from Bond Logistix, L.L.C. This firm has offices in Los Angeles, San Francisco, Dallas and New York. Bond Logistix also uses the internet to obtain bids, but the bidders are not advised of their ranking until the close of bids. This process is expected to result in the highest yield as the bidder is required to start at their"bottom line" or to risk missing the deal. The final proposal is from Public Resources Advisory Group. PRAG serves as the District's independent financial advisor and has offices in Los Angeles, New York and Philadelphia. Their selection process is the same as Bond Logistix's but their fee is lower. Debt Service Reserve Fund Investment Page 5 of 5 November 19, 2003 Recommendation The staff recommendation is two-fold. First, we recommend a Forward Delivery Agreement for the duration of the DSRF. This vehicle will provide interest earnings sufficient to cover our cost of funds, similar to the earnings from a collateralized GIC. Staff is making this recommendation because the earnings are nearly the same while the counterparty risk is minimal. The risk is reduced because the District's Trustee will always have a short-term Treasury or Agency obligation in hand. Secondly, we recommend the selection of Public Resources Advisory Group (PRAG) as the bidding agent. PRAG is a local firm that is convenient to work with and they are intimately familiar with our long-term financial plan. PRAG has proposed to provide bidding agent services for the lowest of the three proposals received and is the only firm to evaluate products other than the standard GIC. GGS G:\wp_dta\fin\210\streed\AR Staff report DSRF investments 10-2003.doc FAHR COMMITTEE Meeting Date To Bd.of Dir. 11-12-03 11-19-03 AGENDA REPORT Item Number Item Number FAHR03-99 14 k Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Lisa Arosteguy, HR Supervisor SUBJECT: Rideshare Program Enhancements GENERAL MANAGER'S RECOMMENDATION 1. Approve two (2) additional vanpool routes for the Rideshare Program utilizing existing vans; and 2. Approve implementation of rideshare incentives in an effort to comply with SCAQMD Rule 2202 and meet established Average Vehicle Ridership (AVR) targeted goal, at the Board's discretion and subject to change by the Board at any time. SUMMARY In compliance with South Coast Air Quality Management District's (SCAQMD) Rule 2202, On-Road Motor Vehicle Mitigation Options, the District recently submitted its Triennial Employee Commute Reduction Plan (rideshare plan). The SCAQMD approved the District's plan although data submitted showed that the District was not meeting the Average Vehicle Ridership (AVR) targeted goal of 1.5 persons per vehicle as specified by SCAQMD. A proposed amendment to Rule 2202, however, would make AVR attainment mandatory by 2005. The District's current AVR is 1.4. The employee rideshare survey, conducted in May 2003, indicated that the District's vanpools were the most effective rideshare option in terms of eliminating vehicles on the road and entering the plant. The District has five (5) operating vanpools; three (3) for South County cities and two (2) for Riverside County. All are 12-passenger vehicles. Employees enjoying the benefits of vanpool ridesharing are currently covering approximately 90% of the entire cost of operating and maintaining the van. The cost for participation in the District's vanpools ranges from $35 - $87 per month, depending on miles driven. There is currently an extensive rideshare waiting list for the Riverside County vans. Adding another vanpool to the Riverside/Corona area would allow 12 District employees to arrive on site in one vehicle (for a total of up to 36 District employees in three (3) vehicles). In addition, a recent vanpool interest survey indicated that a vanpool originating in the Diamond Bar/57 Freeway area is likely to attract high participation. Revised 06ID4/03 Page 1 An additional vanpool route to the Diamond Bar/57 Freeway area would allow another 12 employees to arrive on site in just one vehicle. Adding incentives consisting of gift certificate awards, public transit subsidies and raffle prizes for other forms of ridesharing is projected to increase participation in carpooling, the use of public transportation and bicycling. These program enhancements will assist the District in achieving its AVR goal while also relieving parking shortages at Plant No. 1 due to construction related projects and associated staffing. PRIOR COMMITTEE/BOARD ACTIONS • In May 1989 the Board approved the District's initial Employee Commuter Program. • In March 1990 the program was amended to add vanpooling and paid time-off incentives for ridesharing. • In June 1993, the original two vanpools were expanded to five vanpools due to a long waiting list for existing and prospective routes. • In 1996, the paid time-off incentive was discontinued as a cost savings measure. PROJECT/CONTRACT COST SUMMARY 1. There is a projected cost of approximately $725 each for adding two vanpools this fiscal year. Currently, approximately 90% of the costs for operating and maintaining the District's vanpools are sustained by the vanpool participants, and the existing vehicles to be used are fully depreciated. If two new vans are purchased in FY04/05, depreciation costs will be incurred each year up to 100.000 miles. 2. The average monthly cost for adding rideshare incentives is approximately $1,250. The details are included in the attached staff report. BUDGET IMPACT ❑ This item has been budgeted. (Line item: X This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION See attached Staff Report ALTERNATIVES Revised. 06/04/03 Page 2 ,y 1) Implement vanpools only; no incentives 2) Implement parking fees as a disincentive for employees to drive to work 3) Make no changes to current Rideshare Program CEQA FINDINGS N/A ATTACHMENTS 1. Staff report 2. Vanpool costs 2002 Revised: 06104103 Page 3 C o�JNtr SAMirJ,o�' W Q 0 �.7 90rfCr0�S ENV`P November 12, 2003 STAFF REPORT Rideshare Program Enhancements BACKGROUND The District is required to comply with the South Coast Air Quality Management District's (SCAQMD) Rule 2202, On-Road Motor Vehicle Mitigation Options. To meet the requirement, the District submits an annual Employee Commute Reduction Plan for the Plant No. 1 worksite demonstrating the effectiveness of its Rideshare Program in reducing the number of commuting vehicles. The plan includes the annual employee rideshare survey data and Average Vehicle Ridership (AVR) at Plant No. 1. The District's AVR goal of 1.5 persons per vehicle specified by the SCAQMD is currently a targeted number. However, a proposed Rule 2202 amendment would make AVR attainment mandatory by 2005. The District's current AVR is 1.4. An average of 85 employees per day participates in some form of ridesharing including approximately 48 vanpool riders. In addition, the District is currently experiencing a shortage of parking spaces at Plant No. 1 due to construction projects and associated staffing. Future construction will result in further loss of existing spaces. Reducing the number of employee vehicles arriving on site will alleviate some of the parking shortage. ANALYSIS Encouraging employees to leave personal vehicles at home by implementing additional vanpools and rideshare incentives will assist in meeting the more stringent SCAQMD proposed requirements while also easing the current parking shortage. The District currently has five (5) operating vanpools; three (3) going to South County cities and two (2) going to Riverside County. All are 12-passenger vehicles. There is currently an extensive rideshare waiting list for the Riverside County vans. In addition, a recent vanpool interest survey indicated that a vanpool originating in the Diamond Bar/57 Freeway area is likely to attract high participation. Adding two more vanpools would eliminate 18-22 vehicles from entering the plant each day which would assist the District in meeting its AVR goal. The FY03104 budget included funds for two new vans to replace the two highest mileage vanpool vehicles. If the vans being replaced were to be kept in service for a few more months rather than being placed for auction immediately, two additional vanpool routes could be initiated this fiscal year. The cost to the District is estimated to be less than $1,500 over the next 12 months due to the fact that approximately 90% of the cost of operating and maintaining the vans is paid by the vanpool participants. If proven to D Rideshare Program Enhancements Page 2 November 12, 2003 operate at high capacity, new vans for these routes would be proposed for the FY04/05 budget. The District's current rideshare participation rate is approximately 16% with more than half being vanpool participants. A recent survey of other agencies indicated that those with direct monetary incentives, transit subsidies and/or gift certificate programs have an average participation rate of 35%. Adding incentives for other forms of ridesharing is likely to increase participation in carpooling, the use of public transportation and bicycling to further assist the District in achieving its AVR goal as well as creating more available parking. • Point-award system: Employees would earn one (1) point for each day they rideshare. Each point would earn $1.00 toward a gift certificate or other award. Annual cost of incentive at current participation level (37) $ 8,000 Annual cost of incentive at projected participation level (60)* $12,000 Annual cost per participating employee $ 200 *Projection based on survey • Monthly Metrolink subsidy: A monthly subsidy of $50 would encourage employees to take advantage of the public transit available for long distance commuters. Metrolink tickets cost from $160 to over$200 per month depending on point of origin. Annual cost of incentive at anticipated participation level (3) $ 1,800 Annual cost per participating employee $ 600 • Rideshare Raffles: Monthly rideshare raffles are low-cost incentives that can be added to generate awareness of the District's rideshare program and further encourage participation Annual cost of incentive at $100 per month J $ 1,200 Total annual cost of Incentives $15,000 Total monthly cost $ 1,250 RECOMMENDATION It is recommended that two additional vanpool routes be initiated immediately by utilizing existing vans when their replacement vehicles have been delivered. It is further recommended that if these new routes continue to attract high participation, that the FY04/05 budget process propose funding for two new vans. Q Rideshare Program Enhancements Page 3 November 12, 2003 In addition, it is recommended that the following incentives be added to the District's Rideshare Program: • Point-award system • Monthly Metrolink subsidy • Monthly rideshare raffles Implementation of these enhancements will result in a projected increase in rideshare participation and AVR. Current Program Enhanced Program Rideshare program participation rate 15% 21% Vehicles eliminated through vanpools 43 63 Average Vehicle Ridership (AVR) 1.4% 1.6% Orange County Sanitation District Vanpool Operating Costs 2002 Vanpool Vehicle 1 V-416 V-417 V-419 V-526 V-526 1 Average MilesNear 12,000 21,000 22,000 28,000 8,000 1 Total Cost of Fuel $1,806 $2,520 $2,640 $3,360 $1,082 1 Average Vehicle O&M Cost $3,541 $3,541 $3,541 $3,541 $3,541 I Annual Cost $5,347 $6,061 $6,181 $6,901 $4,623 1 I 1 1 Total Operating Costs $29,113 Passenger Fees (current rates) ($25,488) Total District Cost $3,625 1 1 Cost Per Vanpool $725 CADocuments and Settingslpope\Local Settings\Temporary Internet Files%OLKBFIttem 14(k).2 MINUTES OF SPECIAL WALKING TOUR OF THE GROUNDWATER REPLENISHMENT SYSTEM AND MEETING OF JOINT GROUNDWATER REPLENISHMENT SYSTEM COOPERATIVE COMMITTEE OF THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY WATER DISTRICT October 13, 2003, 4:45 p.m. A Special Walking Tour of the Groundwater Replenishment System at the Orange County Water District facility began at 4:45 p.m. and concluded just prior to the regularly scheduled meeting of the Joint Cooperative Committee. Following the Pledge of Allegiance to the Flag, Chair Philip Anthony called to order the meeting of the Joint Cooperative Committee for the Groundwater Replenishment System in the Boardroom of the Orange County Water District. The following persons were present: OCSD Directors OCWD Directors Norman Eckenrode, Vice Chair Philip Anthony, Chair Shirley McCracken Kathryn Barr, Alternate No. 1 Paul Walker, Alternate No. 2 Brett Franklin, Alternate No. 2 Steve Anderson, Alternate No. 3 OCWD Directors OCSD Staff Wes Bannister Wendy Sevenandt, Project Manager Denis Bilodeau Jan Debay Others Present Paul Brown, Camp Dresser & McKee, Inc. OCWD Staff Dick Corneille, Camp Dresser & McKee, Inc. Virginia Grebbien, General Manager Debra Burris, DDB Engineering Joanne Daugherty, Engineer Abdul Rashidi, Montgomery Watson Harza Shivaji Deshmukh, Senior Engineer Brenda Deeley, Porter Novelli Larry Labrado, Legislative Affairs Specialist Linda Martin, Porter Novelli Michael Markus, Program Manager Sean Fitzgerald, Townsend Public Affairs Mehul Patel, Senior Engineer Barbara Reimer, Fountain Valley Homeowner Jenny Wedge, Communications Specialist Iry Pickler Mike Wehner, Director of Technical Services Ron Wildermuth, Director of Communications Marilyn Kuga, Recording Secretary CONSENT CALENDAR Upon motion made by Director Walker, seconded by Director Barr and carried, the Consent Calendar was approved as follows: 1. Minutes of Previous Meeting The Minutes of the September 8, 2003 and September 29, 2003 Joint Cooperative Committee Meetings were approved as mailed. 2. Issuance of Change Order No. 3 to Woodruff Spradlin & Smart Task Order for Special Legal Services Recommended for OCWD approval at the October 15 Board meeting: Authorize issuance of Change Order No. 3 in the amount of$33,000 to Woodruff Spradlin & Smart Task Order No. 231067 to continue providing legal services in the Pall v. OCWD litigation, bringing the total Task Order to $152,500. 3. Issuance of a Task Order to Townsend Public Affairs, Inc. for Grant Support Recommended for OCWD approval at the October 15 Board meeting: Authorize issuance of a Task Order to Townsend Public Affairs, Inc. in an amount not to exceed $66,000 for the term of 8/1/03 through 7/31104 to continue to serve as a grant support specialist for the GWR System assisting in securing additional grant funding from Proposition 50 and other available grant sources. 4. Issuance of Requests for Proposals for Field and Laboratory Soils & Materials Testing Services for Unit III GWR Pipeline Recommended for OCWD approval at the October 15 Board meeting: Authorize issuance of Requests for Proposals for materials testing, inspection, and geotechnical consulting services for the GWR System Unit III Pipeline. 5. Contract No. GWRS 2161 , AWTF Membrane Pretreatment System Pre-Selection .(US Filter): Change Order No. 7. Recommended for OCWD approval at the October 15 Board meeting: Authorize issuance of Change Order No. 7 for a contract price increase totaling $8,749 and no time extension. MATTERS FOR CONSIDERATION 6. Renewal of Public Information & Education Task Order OCWD Communications Director Ron Wildermuth gave an in-depth presentation of past, present and future tasks and projects handled by Porter Novelli and its subcontractors and proposed renewing the Porter Novelli Task Order for an additional one-year term to continue the Groundwater Replenishment System Public Information and Outreach Program. Porter Novelli would conduct our focus group and survey research; develop strategic planning in conjunction with our staffs; assist with media relations; arrange face-to-face presentations; provide instruction outreach support for lateral development; utilize direct mail; and manage their subordinate consulting team. OCSD Director Norm Eckenrode commended the public information team on their good work and added that support for the GWR System remains intact with no significant organized or active opposition to the project. However, the Committee did question the need for an active campaign to gain formal support for the GWR System from the Cities of Orange and Anaheim, wherein OCSD Director Shirley McCracken explained that the City of Anaheim is not in opposition to this project and that it is not Anaheim's policy to issue formal legislative resolutions. 2 F Upon motion by Director Walker, seconded by Director Barr and carried, the ' Committee recommended that the OCWD Board, at its October 15, 2003 meeting, approve and authorize issuance of a one-year task order to Porter Novelli in the amount of$900,000 for strategic counsel and support for the Groundwater Replenishment System Public Information and Outreach Program. 7. Additions to Owner-Controlled Insurance Program (OCIP) Program Manager Mike Markus explained that extension of the project completion date from February 2006 to October 2007 would have an impact on the Owner-Controlled Insurance Program (OCIP) as well as on the construction management contract. However, OCWD Director Wes Bannister pointed out that Mr. Markus was instrumental with successfully minimizing costs associated with changes to the terms and conditions of the original agreements with AON, Zurich and AIG and that the overall cost would be minimal. Upon motion by Director Eckenrode, seconded by Director Walker and carried, the Committee recommended that the OCWD Board, at its October 15, 2003 meeting: (1) Approve the Incurred Deductible Agreement and Specifications to Incurred Deductible Agreement with Zurich American Insurance Company/ American Zurich Insurance Company; (2) Approve and authorize issuance of Addendum No. 1 to the AON task order in the amount of$414,607; (3) Approve and authorize additions to the Worker's Compensation & General Liability Policies with Zurich in an amount not to exceed $1,056,754; and (4) Approve and authorize additions to the Excess Liability ($50 million) Policy with AIG in an amount not to exceed $75,000. 8. Addendum No. 1 to Professional Services Agreement with Montgomery Watson Harza (MWH) Mr. Markus briefly explained that, due to the extension of the overall project schedule by 16 months, an increase in fees for services provided by Montgomery Watson Harza is being proposed. Upon motion by Director Walker, seconded by Director Eckenrode and carried, the Committee recommended that the OCWD Board, at its October 15, 2003 meeting, and the OCSD Board, at its October 22, 2003 meeting: Approve and authorize issuance of Addendum No. 1 to the Professional Services Agreement with Montgomery Watson Harza, increasing the authorized amount by $1,423,992; from $10,943,038 to an amount not to exceed $12,367,030 for changes in the Scope of Work. 9. Addendum No. 2 to Professional Services Agreement (PSA) with MWH Americas, Inc. Mr. Markus asked that the Committee consider the annual cost-of-living adjustment as provided in the Professional Services Agreement with MWH Americas, Inc. 3 Upon motion by Director Walker, seconded by Director Eckenrode and carried, the Committee recommended that the OCWD Board, at its October 15, 2003 meeting, and the OCSD Board, at its October 22, 2003 meeting: Approve and authorize issuance of Addendum No. 2 to the Professional Services Agreement with MWH Americas, Inc., in accordance with their Professional Services Agreement, a cost-of-living increase of 2.3% from November 2001 through April 2002, and 2.96% from April 2002 through April 2003, increasing the authorized amount by $523,536; from $12,367,030 to an amount not to exceed $12,890,566. 10. Addendum No. 10 to Professional Services Agreement (PSA) with Camp Dresser & Mckee, Inc. (CDM) OCSD Project Manager Wendy Sevenandt explained that five recent events have impacted the design of the main Advanced Water Treatment Facility (AWTF) and that these events would require a budget increase for Camp Dresser & McKee, Inc. Upon motion by Director Walker, seconded by Director Eckenrode and carried, the Committee recommended that the OCWD Board, at its October 15, 2003 meeting, and the OCSD Board, at its October 22, 2003 meeting: Approve and authorize issuance of Addendum No. 10 to the Professional Services Agreement with Camp Dresser & McKee, Inc., increasing the authorized amount by $305,550 from $33,281,536 to an amount not to exceed $33,587,086, for changes in the Scope of Work. 11. Consideration of Establishing New Project Policy for Issuance of Construction Change Orders Mr. Markus explained that following OCWD's approval of Amendment No. 9 to the Joint Exercise of Powers Agreement for Development, Operation, and Maintenance of the Groundwater Replenishment System and Green Acres Project, OCSD approved this Amendment with the exception that the OCWD General Manager's authority be changed to a limit of$1 million per contract. Upon motion by Director Eckenrode, seconded by Director McCracken and carried, the Committee recommended that the OCWD Board, at its October 15, 2003 meeting: Approve and adopt Amendment 1 to the Joint Exercise of Powers Agreement for the Development, Operation and Maintenance of the Groundwater Replenishment System and the Green Acres Project Agreement providing for Revised Change Order Policy. INFORMATIONAL ITEMS 12. Proiect Schedule and Budget Update Mr. Markus reviewed the project schedule and reported that by November— December, all contracts are expected to be advertised and that by February 2004, construction is expected to be at 100%. During his update of the budget, he referred the Committee to a detailed breakdown of current costs entitled, Project Expenditure Report. 4 "r Director Anthony again directed staff, despite the 20-month project extension, to consider ' incentives for contractors to complete projects ahead of schedule. He also requested that the General Manager and the Chief Financial Officer return to the Committee with an approved system for tracking GWR System project expenditures. 13. Construction Projects Progress The three-page Monthly Progress Report— September 2003 and the comprehensive Monthly Progress Report—August 2003 were handed out. 14. Status Report • Grants and Loans Update - Senior Engineer Shivaji Deshmukh provided a brief update on the Department of Water Resources Grant; DWR Grant- Phase 2; State Water Resources Control Board Funding; and Metropolitan Water District Local Resources Program. • Public Information and Education Update - None GENERAL MANAGER'S ANNOUNCEMENT/REPORT Ms. Grebbien reported that a final design meeting of lead consultants is scheduled for October 14, 2003 at 3:00 p.m. at the Los Angeles Athletic Club in Los Angeles. DETERMINATION OF ITEMS TO BE PLACED ON CONSENT CALENDAR FOR OCTOBER 15, 2003 BOARD MEETING All items were approved for the Consent Calendar for the October 15, 2003 Board Meeting. ADJOURNMENT The meeting was adjourned at 6:43 p.m. Director Philip Anthony, Chairman 5 BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 11/19/03 AGENDA REPORT Item Number Item Number 15 b Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Wendy Sevenandt, Associate Engineer III SUBJECT: GROUNDWATER REPLENISHMENT SYSTEM, JOB NO. J-36, GROUNDWATER REPLENISHMENT SYSTEM UNIT II PIPELINE PROJECT GENERAL MANAGER'S RECOMMENDATION Authorize award of a construction contract by the Orange County Water District (OCWD) to Colich Construction LP, for construction of Groundwater Replenishment System (GWRS) Unit II Pipeline Project, Contract No. GWRS-2003-4, for an amount not to exceed $16,084,005, with OCWD and Orange County Sanitation District paying equal shares of $8,042,003. SUMMARY • In August, the Joint Cooperative Committee (JCC) approved the plans and specifications for the GWRS Unit II Pipeline Project with an engineer's estimate of S20,800,000. • This project involves installation of approximately 17,000 linear feet of 66-inch diameter cement mortar lined and coated steel pipe that extends from just north of 17t" Street, through River View Golf Course, to Katella Avenue in the west bank along the Santa Ana River. • On October 21 , 2003, ten bids were received, with the lowest bid in the amount of $16,084,005. A tabulation of the ten bids is included in the attached Agenda Item Submittal from the November 10, 2003 JCC meeting. • On November 10, 2003, the JCC recommended awarding the contract to the lowest responsive bidder, Colich Construction LP, for the bid amount of $16,084,005. PRIOR COMMITTEE/BOARD ACTIONS Joint Cooperative Committee approved the Plans and Specifications on August 11 , 2003. PROJECT/CONTRACT COST SUMMARY See the attached Budget Information Table. The value of the contract awarded with this action is $16,084,005, with OCWD and OCSD paying equal shares of $8,042,003. This bid is less than the engineer's estimate. G:\wp.dta\agenda\Board Agenda Repons'2003 Board Agenda Reports\1103\Item 15(b).GWRS.dcc Revised: 06/04/03 Page 1 BUDGET IMPACT ® This item has been budgeted. (Line Item: Section 8, Page 139) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) The breakdown of total construction costs between the separate contracts is shown in the following table. Each agency is responsible for a 50 share of these costs. OCSD's share is itemized on page 3 of the Agenda Report. Summary of Current Construction Budgetary Costs by Contract ID Contract Eng. Est. Awarded Completed No. 1 Theo Lacy Pipeline Reach, GWR Portion 1 ,430,000 $1,430,000 2 GWR Pipeline — Reach 1 29,400,000 3 GWR Pipeline — Reach 2 20,800,000 16,084,005 4 1 GWR Pipeline — Reach 3 16,989,000 16,989,000 5 Temp MF/Site work/Site Power 17,140,000 17,139,646 6 Southeast Barrier Pipeline 3.381 ,000 3,381 ,000 7 West End Barrier Pipeline 265,000 265,000 8 Advanced Water Treatment Facility 253,600,000 9 SCE Work for Permanent Substation 2,396,000 2,396,000 10 Barrier Well Drilling/Monitoring 12,400,000 Wells/Wellhead Facilities/Pipelines 11 GW R Team Temp Offices/Trailers 807,000 807,000 12 Southern California Water Co. Well 1 ,635,000 13 Vendor Design Submittals for MF, UV, 1 ,162,000 1,162,000 and PCS 14 Emerson Process Control System 2,373,000 15 Integrated Information System 4,860,000 16 Owner Controlled Insurance Program 7,400,000 7,384,937 Current Construction Total $376,038,000 $64,801,588 $2,237,000 The cost breakdown for the final design and construction phases of the Groundwater Replenishment System (GWRS) budget as approved in October 2002 and to be cost shared is: Construction: 5379,400,000 Engineering, Legal Administration: $ 54,700,000 Project Contingency: $ 19,800,000 Total: $453,900,000 The current total project cost estimate for the final design and construction phase is within the total estimate presented in October 2002 when the Joint Exercise of Power Agreement for the Development, Operation and Maintenance of the GWRS and the Green Acres Project and budget was approved. GAvvp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 15(b).GWRS.doc Revised: 06/04/03 Page 2 The Orange County Sanitation District (OCSD) Capital Budget is: GWRS Final Design and Construction Cost Shared Costs: $ 226,950,000 OCSD Preliminary Design and Non-cost Shared Costs: $ 9,256,000 Total Capital Costs to OCSD $ 236,206,000 Grants $ (45,000,000) Net Costs after Grants $ 191,206,000 ADDITIONAL INFORMATION Please refer to the attached November 10, 2003, Joint Cooperative Committee (JCC) Agenda Item Submittal ALTERNATIVES There are no recommended alternatives to awarding to the lowest responsible bidder. CEQA FINDINGS The Environmental Impact Report/Environmental Impact Statement (EIR/EIS) for the Groundwater Replenishment (GWR) System was certified by the Orange County Sanitation District (OCSD) and the Orange County Water District (OCWD) Board of Directors on March 24, 1999. Addendum No. 1 was approved on March 28, 2001. Addendum No. 2 was approved by OCSD on January 23, 2002, and by OCWD on January 16, 2002. ATTACHMENTS 1. Budget Information Table 2. Agenda Item Submittal to the JCC re: Award of Contract No. GWRS-2003-4, Groundwater Replenishment System Unit II Pipeline Project wsk: G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 15(b).GWRS.doc G:\wp.dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\l 11=11ern 15(b).GWRS.doo Revised: 06/04/03 Page 3 BUDGET INFORMATION TABLE GROUNDWATER REPLENISHMENT (GWR) SYSTEM JOB NO. j-36 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED PROJECTIPHASE AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED TO AUTHORIZATION TOTAL EXPENDITURE EXPENDED TO BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE DATE(%) /DECREASE Phase 1 -Project Development $ 700,000 S 4,000 S 4,000 $ 4,000 S 4,000 $ 4,000 100% Phase 2-Preliminary Design $ 3.313.000 $ 3,313,000 $ 3,300,000 S - S 3,300,000 S 3,317,000 101% Phase 3-Design $ 9,849,000 S 20,957,000 S 20,957,000 $ 18,898,222 S 18.898,222 S 12,000,000 63% Phase 4-Construction S 98,481,000 S 201,932.000 $ 201,932,000 S 34,059,244 S 8,042,003 S 42,101,247 $ 5,123,000 12% Phase 5-Commissioning S - $ S - 0% Phase 6-Close-Out S S $ - 0% Phase 7-Contingency S 12,895,000 S 10,000,000 S 10,000,000 S 0% PROJECT TOTAL $ 121,925,000 $ 236,206,000 $ $ 236,206,000 $ 56,261,466 $ 8,042,003 S 64,303,469 $ 20,444,000 32% Reimbursable Costs $ 45,000,000 S 45,000,000 $ 4,000,000 PROJECT NET S 121,925,000 S 191,206,000 S $ 191,206,000 S 56,261,466 $ 8,042,003 S 64,303,469 S 16,444,000 26% PSA/Contract Design PSA S 15,921,453 S S 15,921,453 S 15,921,453 S S 15,921.453 Construction Contract $ 187,746,097 S $ 187,746,097 $ 25,411.851 S 8,042,003 S 33,453,853 G:\wp dta\agenda\Board Agenda Reports\2003 Board Agenda Reports\1103\Item 15(b).1 AGENDA ITEM SUBMITTAL Meeting Date: November 10, 2003 Budgeted: Yes Funding Source: OCW D/OCS D/G rants To: Joint Groundwater Replenishment Program/Line Item No.: 501-5049-722.60-01 System Cooperative Committee Cost Estimate: $20,800,000 From: Virginia Grebbien General Counsel Approval: N/A Blake Anderson Project Report Approved: Yes CEQA Compliance: Yes Staff Contact: Shivaji Deshmukh Subject: AWARD OF CONTRACT NO. GWRS-2003-4, GROUNDWATER REPLENISHMENT SYSTEM UNIT II PIPELINE PROJECT SUMMARY Ten bids for Contract No. GWRS-2003-4, Groundwater Replenishment System Unit II Pipeline Project, were received and opened on October 21, 2003. Following evaluation of the bids, staff recommends awarding the contract to the lowest responsive bidder, Colich Construction, LP, for the bid amount of $16,084,005. RECOMMENDATION Agendize for the November 19 OCWD and November 26 OCSD Board meetings: 1) Receive and file Affidavit of Publication of Notice Inviting Bids; 2) Ratify issuance of Addenda Nos. 1 -3; and 3) Accept bid and award Contract No. GWRS-2003-4, Groundwater Replenishment System Unit II Pipeline Project, to the lowest responsive bidder, Colich Construction, LP, for $16,084,005. DISCUSSIOWANALYSIS In August, this Committee approved plans and specifications and authorized solicitation of bids for the Groundwater Replenishment System Unit II Pipeline Project. This project involves installation of approximately 17,000 linear feet of 66-inch diameter cement mortar lined and coated steel pipe that extends just north of 171" Street in Santa Ana, through River View Golf Course to Katella Avenue. This unit includes the relocation of the Regional Trail to the east side of the river during construction, and then restoring it to the west side at the end of the project. The pipeline alignment will be in the west - 1 - f bank of the Santa Ana River and includes tunnels at each street and freeway under crossing. The Notice Inviting Bids was published on August 12, 2003, and three addenda were issued on September 17, October 2, and October 10, 2003, which provided minor clarifications to the plans and specifications. Bids were opened on October 21, 2003, and a total of ten bids were received. The companies that submitted bids and their respective bid amounts were as follows: Colich Construction, LP $ 16,084,005 Ken Thompson, Inc. $ 16,090,548- Steve Bubalo Construction Co. $ 16,450,000 Mladen Buntich Construction Co., Inc. $ 17,160,000 L.H. Woods & Sons Inc. $ 17,250,891 ARB, Inc. $ 18,708,675` Southern California Underground $ 18,358,725* Valverde Construction Inc. $ 21,812,721 Las Vegas Paving Corp. $ 22,180,249 Kiewit Pacific Company $ 23,206,739* * - Bids adjusted for arithmetical errors. Staff has evaluated the bid of Colich Construction, LP and found it to be complete and responsive. Colich Construction, LP has the appropriate State contractor's license which is current and in good standing. References have also been checked and found acceptable. The low bid that was received was $ 4,715,995 under the Engineer's estimate and this amount has been transferred to the program contingency, which maintains the overall program budget of $453.9 million adopted by this Committee and both Boards of Directors. PRIOR COMMITTEE ACTIONS August 11, 2003 Approval of plans and specifications and solicitation of bids. - 2 - for the Fiscal Year Ended June 30, 2003 n ; . OAF c� r CD M I I- II U111 ►}ram 1`.,��v.+�y� i4._-� ;ty, 5 - , n 4L SAW HE EN��QO Orange County Sanitation District, California tmw d ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2003 end ow ww Prepared By: Department of Finance Accounting Division Michael D.White, CPA Controller Uzi i W 4� W W (THIS PAGE LEFT INTENTIONALLY BLANK) 1 W LJ W 4� W W L um um ORANGE COUNTY SANITATION DISTRICT Comprehensive Annual Financial Report No Table of Contents For the Year Ended June 30, 2003 MW Page ,n, INTRODUCTORY SECTION: Letter of Transmittal.............................................................................. .....--- i ............................... GFOA Certificate of Achievement.................... "' CSMFO Certificate of Award ....................................................................................................... ix Board of Directors OrganizationChart....................................................................................................................... A Mapof Service Area..................................................................................................................... xii FINANCIAL SECTION: Independent Auditors' Report....................................................................................................... 1 Management's Discussion and Analysis—Required Supplementary Information....................... 3-8 Basic Financial Statements: Statementof Net Assets...................................................................................................... 10 Statement of Revenues, Expenses, and Changes in Net Assets ...................................... 11 Statementof Cash Flows .................................................................................................... 12 Notes to Basic Financial Statements................................................................................... 13-28 Supplementary Information: Combining Statement of Net Assets ................................................................................... 30 Combining Statement of Revenues, Expenses, and Changes in Net Assets .................... 31 Combining Statement of Cash Flows.................................................................................. 32 Schedule of Changes in Net Assets by Activity and Revenue Area.................................... 33 STATISTICAL SECTION: Expenses by Type-Last Ten Fiscal Years.................................................................................. 35 Revenues and Gross Capital Contributions by Source- Last Ten Fiscal Years.......................... 36 Property Tax and User Fee Levies and Collections- Last Ten Fiscal Years............................... 37 Assessed and Estimated Actual Value of Taxable Property- LastTen Fiscal Years............................................................................................................... 38 Property Tax Rates- Direct and Overlapping Governments- LastTen Fiscal Years............................................................................................................... 39 PrincipalUsers............................................................................................................................. 39 Ratio of Annual Debt Service for Bonded Debt to Total Expenses—Last Ten Fiscal Years....... 40 Bond Coverage-Last Ten Fiscal Years...................................................................................... 41 Computation of Direct and Overlapping Debt.............................................................................. 42 Demographic Statistics- Last Ten Fiscal Years .......................................................................... 43 Property Value and Construction-Last Ten Fiscal Years ........................................................... 44 Estimated Populations Served by the Orange County Sanitation District.................................... 45 Insurancein Force........................................................................................................................ 46 Comparison of the Volume of Wastewater Treated With Revenues and Expenses- �.+ Last Ten Fiscal Years.............................................................................................................. 47 Biosolids Produced-Last Ten Fiscal Years ................................................................................ 48 Miscellaneous Statistics............................................................................................................... 49 �I W W W W W (THIS PAGE LEFT INTENTIONALLY BLANK) W W W l l W i Introductory Section Se�rion �ntxo d��to�1 � 1 i ?t`OJNTNNI),��O�Q ORANGE COUNTY SANITATION DISTRICT 90 - �1 �f tN � August 28, 2003 phone: �. (714)962-2411 The Board of Directors of the mailing address: Orange County Sanitation District, P.O. Box 8127 Orange County, California .;ountain Valley.CA 92728-8127 Submitted herewith is the Comprehensive Annual Financial Report of the Orange County Sanitation street address: District, Orange County, California for the fiscal year ended June 30, 2003. This report includes the 0844 Ellis Avenue financial position and activity of the three individual revenue areas, as described within the Governmental mountain Valley,CA Structure below, as of June 30, 2003 and was prepared b the Accounting Division of the District's 92708-7018 P P Y 9 Finance Department. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed Member data is accurate in all material respects and is reported in a manner designed to present fairly the financial Agencies position and results of operations of the District. All disclosures necessary to enable the reader to gain an • understanding of the District's financial activities have been included. Cities The report presented herewith consists of three parts: (1) an introductory section consisting of a letter of ..� Anaheim Brea transmittal, awards received for the prior year's Comprehensive Annual Financial Report, a listing of the Buena Park Board of Directors, an organization chart, and a map of the individual revenue areas; (2) a financial Cypress section consisting of the independent auditors' report, Management's Discussion and Analysis of the Fountain Valley Financial Statements, basic financial statements, and supplementary financial statements and schedule of Fullerton Garden Grove the individual Revenue Area Funds; and (3) a statistical section consisting of pertinent financial and Huntington Beach nonfinancial data that presents historical trends and other information about the District. Irvine La Habra Included within the accompanying financial statements are all of the organizations, activities, and functions La Palma Los Alamitos controlled by the District's Board of Directors in accordance with the Governmental Accounting Standards Newport Beach Board Statement Number 14, "The Financial Reporting Entity'. For the purpose of this evaluation, control Orange was determined by the Board's responsibility for: (1) adoption of the budget and user charges, (2) taxing Placentia authority, and 3 establishment of policies. The reporting entity and its services are described in further Santa Ana Y. ( ) P P 9 Y Seal Beach detail in Note 1 of the financial statements. Stanton Tustin -� Villa Park GOVERNMENTAL STRUCTURE Yorba Linda aunty of Orange The Orange County Sanitation District encompasses the Northern section of Orange County. The District _ provides wastewater treatment for an area of the County covering 471 square miles and serving a Sanitary Districts population of approximately 2.4 million, or 81 percent of the County's population. The District was originally incorporated in 1954 as nine separate public corporations, or districts. In April of 1998, at the Costa Mesa District's request, the Board of Supervisors of the County of Orange passed Resolution No. 98-140 ..� Midway City ordering the consolidation of these nine County Sanitation Districts into a new, single sanitation district, to Water Districts be known as the Orange County Sanitation District, effective July 1, 1998. This action was recommended to the Board by the Local Agency Formation Commission in order to simplify governance structures, ..� Irvine Ranch reduce the size of the Board, ease administrative processes, streamline decision-making and consolidate accounting and auditing processes. The boundaries of the nine previous districts had remained intact for the purpose of collecting sewer user fees at the previously established rate schedules, and were referred to as nine individual revenue areas through June 30, 2000. Effective July 1, 2000, all Revenue Areas, except Revenue Area 7 and 14, consolidated user fee rates and all enterprise fund accounting and budgeting activities. i �, "Maintaining World-Class Leadership in Wastewater and Water Resource Management' Li L� The District is managed by an administrative organization composed of directors appointed by the agencies or cities which are serviced by the District. Each of the three remaining Revenue Areas (the l I Consolidated Revenue Area, Revenue Area 7 and Revenue Area 14) has its own budget and is u responsible for the construction and maintenance of its own collection system. All Revenue Areas, except Revenue Area 14 and the portion of the Consolidated Revenue Area previously known as Revenue Area 13, receive their own share of the one-percent ad valorem property tax levy. In addition, all Revenue Areas except Revenue Area 14, collect user fees from property owners. Revenue Area 14 receives all of U its revenues from service charges to the Irvine Ranch Water District. The purpose of the District's wastewater management program is to protect the public's health, preserve LJ the beneficial uses of the coastal waters, and maintain air quality. The objectives of operating the treatment plants are to process and dispose of the treated wastewater and the separated solids in accordance with Federal, state, and local laws including the Environmental Protection Agency. I The District sewerage system includes approximately 650 miles of sewers that convey wastewater generated within the District's boundaries to the District's two wastewater treatment plants, Reclamation Plant No. 1 located in the City of Fountain Valley, and Treatment Plant No. 2 located in the City of Huntington Beach. Plants No. 1 and No. 2 have primary treatment capacities, including standby, of 108 million gallons per J day (mgd) and 168 mgd, respectively. Approximately 60 percent of the advanced primary effluent also u receives secondary treatment. Both plants are master-planned for a future primary and secondary treatment capacity of 240 mgd for a combined total of 480 mgd. Outflows of treated wastewater from the two plants are combined and discharged to the ocean off the Huntington Beach coast through an outfall pipe that is 120 inches in diameter and approximately five miles long. The last mile of the outfall pipe is a diffuser that dilutes the wastewater with seawater in a ratio of 148 parts seawater to one part treated wastewater at an average depth of 185 feet. v ECONOMIC CONDITIONS AND OUTLOOK The Anderson Center for Economic Research at Chapman University is forecasting a continuing recovery for Orange County from the recession of 2001 with real gross domestic product growth of around three percent through 2004. While not high, this should still be enough to outpace job growth, which is projected to increase steadily but only to 2.4 percent by year-end 2004. This translates to an average annual percentage increase of 1.0 percent in 2003 and 2.1 percent in 2004, with net job creation of about 13,000 jobs in 2003 and 30,000 in 2004. The unemployment rate for Orange County decreased slightly from 4.1 percent in FY 2001-02 to 4.0 percent in FY 2002-03. Total taxable sales is forecasted to increase 3.2 percent in 2003 and 4.3 percent in 2004 while personal income is forecasted to increase over the same time period 3.9 percent and 4.3 percent, respectively. L Nonresidential valuation is forecasted to decline $150 million through year-end 2004 due primarily to the high vacancy rate for office buildings of 16.4 percent that is cutting into demand. However, higher housing demand is leading to a forecasted increase in dwelling units to 14,000 units in 2003 and 13,100 units in 2004, as compared to an actual number of 11,900 units in 2002. Total building permit valuation is d..l forecasted to increase to $3.7 billion in 2003 and decline slightly to $3.6 billion in 2004, both roughly in line with 2002 but with more residential and less nonresidential valuation. There currently is no evidence suggesting that housing prices are likely to decline as they did in the early 1990s. The unsold inventory remains at a very tight 1.7 months as compared to the 1992-95 period when it averaged 15 months. In addition, the median time on the market for single family homes is at a decade low 27.7 days. Historically, the median time on the market for single family units has always shot up before the rate of housing appreciation has ever decreased, which hasn't occurred yet in this current ii �J m `m cycle. However, there are signs that the housing appreciation rate is likely to fall soon. Not only is the county's affordable index near historic lows, but mortgage rates are forecasted to increase through 2004. Such an increase, combined with continuing housing appreciation,will further lower affordability levels. aw Another factor signaling a slowdown in housing appreciation is that recent price increases have been highest in central Orange County cities like Fullerton, Santa Ana, Orange and Garden Grove. Appreciation rates in coastal cities like Newport Beach and Laguna Beach have slowed dramatically. This aid suggests that the housing price swing has run its course and should soon lose steam. Chapman's forecast calls for housing appreciation to peak in 2003 at 14.5 percent and drop to 4.2 percent in 2004. t, MAJOR INITIATIVES No Preferred Level of Treatment In order to eliminate most bacteria from being released from the ocean outfall, the District began in FY UW 2002-03 to first use chlorine bleach to disinfect the effluent and then apply sodium bisulfate to remove any remaining chlorine prior to releasing the treated wastewater to the ocean. The District continues to take great measures to limit the chlorine residual to a very low level, essentially Mid non-detectable, to protect the animal life in the ocean. This mode of disinfection is anticipated to occur for the short-term, possibly three years,while the District studies, designs and constructs permanent facilities, and considers alternate disinfection technologies. Beginning in FY 2002-03, the addition of disinfection do treatment required an annual outlay of$5.7 million in additional chemicals within the joint operating budget of the District. Once the Board of Directors decided on a full secondary discharge standard in July 2002, staff prepared ftw the Secondary Treatment NPDES Permit Application that was required to be submitted to the regional office of Environmental Protection Agency(EDA)and the Regional Water Quality Control Board (RWQCB) in December 2002. Regulators are now evaluating the proposed terms and conditions of the permit ,s, application and determining whether it will meet the applicable federal and state standards. The next step will be the negotiation process,which could take anywhere from six months to several years. Following negotiations, a new draft NPDES permit will be issued to the District for future operations. The me EPA and RWQCB will then conduct public hearings and issue a permit. In the interim, the District's 1998 permit will remain in effect. tw Completion of the additional capital improvements needed to meet full secondary treatment standards is scheduled for December 31, 2012 at a cost of $422 million. In the interim the District will operate the plants to maximize available secondary treatment and to reduce effluent biochemical oxygen demand and suspended solid discharges below currently allowed limits. Each year the current 60 percent secondary k=d portion will increase incrementally as operations change and new facilities are constructed and placed in service over the next eleven years. m Once full secondary standards are achieved, it is estimated that the operating cost of processing the increased level of biosolids will grow from approximately$10 million to$20 million per year. Groundwater Replenishment System The District and the Orange County Water District (OCWD) are currently developing the Groundwater Replenishment System (GWRS) project that will be the largest water reclamation project in the nation. GWRS is a joint effort by the two agencies to initially provide 78,400 acre-feet per year of reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier. iii Low GWRS will have the capacity to divert up to 100 million gallons of water a day from the District's ocean discharge during peak winter storms, which will allow the District to defer construction of an additional ocean outfall at an estimated cost of$170 million. LWJ The District and OCWD have agreed to match the funding for this project. The District alone has budgeted $236.2 million through 2007. Through FY 2002-03, $24.5 million of this amount has been incurred with an additional $43.1 million included in the cash flow outlay for FY 2003-04. Federal and State Grants are expected to reduce these local costs. Biosolids Program Ww The District currently land applies its entire biosolids residuals for beneficial reuse in Kings, Kern, and San Bernardino counties, in Arizona, and on tribal lands through contracts with biosolids management service providers. Riverside, Kern, and Kings County have enacted biosolids ordinances eliminating land application of Class B biosolids effective January 2003. Class B biosolids reuse options and capacities for `� the management of District biosolids are becoming insufficient as a result of this legislation. In response to these regulatory developments, the District developed a short-term biosolids management i0w plan that analyzes several different technologies so that the District could maintain its policy of providing environmentally sound biosolids management with an emphasis on multiple, independent reuse alternatives. As a result of this plan, the District has reviewed several Class A biosolids technology options and has entered into a biosolids management contract with California Soil Products for the production of a Class A chemically stabilized biosolids product. A long-term biosolids management program will be developed that will be based on relationships with host communities and farmers willing to continue accepting Class B biosolids and producing Class A biosolids products. A comprehensive biosolids plan is currently underway that will review many options from dewatering technologies to final products and markets. Some of the options to be included in the plan include turning biosolids into consumer-based products such as pellets or creating bio-fuel. Asset Management In June 2001, the District began the initial development of a strategic level Asset Management (AM) Improvement Program that will follow with the eventual implementation of specific AM improvement projects over a period of years. AM provides for the systematic planning, acquisition, deployment utilization control, and decommissioning of capital (infrastructure) assets. It integrates policy (strategic- level) management, system/network (mid-level) management, and operations level management into one focus. AM is all about maximizing the life cycle assets of public infrastructure while continuously delivering the desired level of customer service. In short, AM focuses on the optimal stewardship of community assets. Being the third largest wastewater treatment facility on the West Coast, the District has a net capital asset value of$874 million as of June 30, 2002 and anticipates the investment of approximately$2 billion in new capital assets over the next two decades. The development of the Asset Management program was subdivided into two phases: Strategic Plan Development, and Implementation Plan Development and Implementation. The Asset Management Strategic Plan was completed and adopted by the Board of Directors in December 2002. The strategic plan will include; an analysis of the current state of asset management at the District, the development of a basic and advanced asset management program tailored to the District, a gap analysis showing the needed changes for each level of asset management, a scope of work for the implementation phase ofL" the effort, and approval of the plan from the Board. The Asset Management Strategic Plan is located on the District's website under special reports. Although the Strategic Plan was adopted by the Board in December, the size, complexity, and method for the implementation approach is still being determined. The Strategic Plan presented a business case for the District for implementation of advanced asset management practices. The business case showed that W iv M eft an expenditure ranging between $22 million and $38 million over a ten year period would conservatively save at least $350 million in life cycle asset costs over a 25 year period, save an additional $50 million in reduced capital expenditures, as well as put the District on track to developing a platform for sustainable am infrastructure. In April 2003, the Board directed staff to submit the Asset Management Program to an independent peer review process with the intent of developing recommendations for the Board. Full implementation of the °`" asset management program is projected to take up to eight years. As Asset Management is a process of continuous improvement,the future state of asset management will continually be reviewed cob SERVICE EFFORTS AND ACCOMPLISHMENTS Md In April 2003, the District was presented with a Clean Water Partner Certificate by the Environmental Protection Agency (EPA) at a ceremony held at EPA headquarters in Washington D.C. for extraordinary efforts and contributions to watershed protection. The District has been involved in a number of cooperative ventures to improve water quality in the Santa Ana River watershed including co-founding the Santa Ana River Watershed Group, management of dairy wash water, studies of endangered species in the river, diversion of urban runoff away from Orange County's beaches, and conducting full-scale bacterial source tracking investigations to determine the cause of elevated bacterial levels at local beaches. In June of 2003, the Orange County Water District and Orange County Sanitation District's joint Groundwater Replenishment System (GWR) received the "2003 Drought Proofing Award"from the Santa Ana Watershed Project Authority. This joint capital improvement project will produce water similar in quality to bottled water, by taking highly treated wastewater that is currently released into the ocean, and purifying it through microfiltration, reverse osmosis and ultraviolet light with hydrogen peroxide advanced oxidation treatment. The purified water will become part of a seawater barrier and be pumped through a 13 mile pipeline to percolation ponds in Anaheim. It will then seep into deep aquifers and blend with Orange County's other sources of groundwater, following the same natural filtering path rainwater takes through the ground. Once completed in 2007, the GWR System will produce 72,000 acre-feet (or 23.4 billion gallons)of purified water annually-enough water to serve 140,000 Orange County families. ACCOUNTING AND BUDGETARY CONTROLS The District's accounting records are maintained on the accrual basis. In developing and evaluating the mod District's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept kne+ of reasonable assurance recognizes that: (1)the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. We believe that the District's internal accounting controls adequately safeguard assets and LOW provide reasonable assurance of proper recording of financial transactions. Each year the District's Board of Directors adopts an annual operating plan. A joint works budget is first prepared that identifies the specific capital projects and operating activities to be undertaken by the District tod during the year. Upon adoption, District's staff allocates the joint works budget proportionately to each of the individual Revenue Areas and obtains individual Revenue Area budget approval. The budgetary level of control, the level at which expenses cannot exceed budget, is exercised at the individual District, or fund level. The District has adopted a Uniform Purchasing Policy that identifies the agreed upon b' purchasing standards. bmi iow CASH MANAGEMENT The District's investment portfolio, except for the District's debt service reserves, investments with the State Local Agency Investment Fund, and overnight repurchase agreements of idle cash within the District's general bank account, are managed by an outside money manager, Pacific Investment Management Company (PIMCO), who performs the daily investment activities, and by Mellon Trust, who serves as the District's independent custodian bank. This externally managed portfolio consists of a short term investment pool of$66,543,000 at June 30, 2003 that has maturities out to 120 days, and a long- term investment pool of $329,689,000 that has average maturities out to 2.5 years. Investments of this externally managed investment portfolio consist of U.S. Government securities, corporate bonds, commercial paper, and money market mutual funds. Investments of the District's debt service reserves totaling $34.1 million consist of bank investment contracts of$34.0 million with JPMorgan Bank and State Street Bank, maturing on August 1, 2013, and $0.3 million in open-ended mutual funds. Investment earnings for the year were $25,889,000, a decrease of $2,184,000 from the prior fiscal year total of$28,073,000. This decrease is attributable to both lower cash and investment balances and lower yields earned on investments over the prior year. Cash and investment balances declined in FY 2002-03 from the prior year by $38.2 million from $465.3 million to $427.1 million, or 8.2 percent, while the yields earned on investments declined from 5.96 percent to 5.80 percent during this same time period. Investment income includes changes in the fair value of investments. Increases or decreases in fair value 6W during the current year do not necessarily represent trends that will continue; nor is it always realistic to realize such amounts, especially in the instance of temporary changes in the fair value of investments. In 1998, the District conducted an in-depth review of its reserve policy. This review included a survey of 6' the reserve policies of 23 other public agencies as a tool to assist in the evaluation of the underlying economic assumptions supporting the District's reserve policy. As of June 30, 2003, the District's designated retained earnings totaled $427 million, and have been earmarked for the following specific 6, purposes in accordance with the District's reserve policy: Designated For Cash Flow Contingency $ 100 million Designated For Self-Insurance 57 million 6W Designated For Capital Improvements 237 million Designated For Debt Service Requirements 33 million Total Designated Retained Earnings $427 million RISK MANAGEMENT For the year ended June 30, 2003, the District was self-insured for a portion of workers' compensation and property damage. The self-insured portion for workers' compensation is $500,000 per person per Lad occurrence with outside excess insurance coverage to $25 million. The self-insured portion for property damage covering fire, flood, and other perils is $25,000 per occurrence with outside excess insurance coverage to $300 million for fire, flood, and other perils. The District is self-insured for all property damage from the perils of earthquakes. The District also maintains outside comprehensive boiler and machinery insurance with a $100 million per occurrence combined limit with deductibles ranging from $25,000 to $100,000. The District is insured for general liability up to $25 million per occurrence with a self-insured portion of$100,000. 6.1 District management believes that there are no outstanding claims as of June 30, 2003 that would materially affect the financial position of the District. 6W 6W vi ftw INDEPENDENT AUDIT An audit of the books, financial records and transactions of the District is conducted annually by independent certified public accountants. The District selected the accounting firm of Moreland & Associates, Inc., to perform the audit for the year ended June 30, 2003. The auditors' report on the District's basic financial statements and supplementary information is included in the financial section of this report. This report renders an unqualified opinion on the District's basic financial statements for the year ended June 30,2003. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers' Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Orange County Sanitation District for the District's comprehensive annual financial report for the year ended June 30, 2002. This was the bm, ninth consecutive year that the District has received this award. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. bw A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program e, requirements and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS This report could not have been accomplished without the dedicated services of the Accounting Division staff, and I would like to especially express my appreciation to Julie Matsumoto who assisted in its No preparation. I would also like to thank the District's Boards of Directors, the General Manager, and the Director of Finance for their interest and support in conducting the financial operations of the District in a responsible and progressive manner. umd Respectfully submitted, Michael D.White, CPA Controller Uzi bw toi MU vii WSJ Certificate of Achievement for Excellence in Financial Reporting Presented to Orange County Sanitation District, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2002 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement how systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting how and financial reporting. OF MMM%IIA MM s os President Executive Director WW viii `'' i i f I i f [ [ i ► f i f E f i f f f California ociet o nnicipa finance icers Certificate of Award Outstanding Financial Reporting 2001-2002 Presented to the X Orange CountySanitation District This certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statentents and in the underlying accounting system from which the reports were prepared. February 24, 2003 Chair,Professional&Technical Standards Committee Dedicated to Excellence in Municipal Financial Management IAW ORANGE COUNTY SANITATION DISTRICT Board of Directors L.W As of June 30,2003 6W AGENCY ACTIVE DIRECTOR ALTERNATE DIRECTOR Cities: `w Anaheim Shirley McCracken Bob Hernandez Brea Roy Moore John Beauman Buena Park Patsy Marshall Jim Dow Cypress Anna L. Piercy Tim Keenan Fountain Valley John Collins Larry Crandall Fullerton Don Bankhead Leland Wilson Garden Grove Bill Dalton Bruce Broadwater Huntington Beach Debbie Cook Connie Boardman Irvine Beth Krom Christina Shea La Habra Steve Anderson Steve Simonian La Palma Paul Walker Larry Herman Los Alamitos Alice B.Jempsa Marilynn M. Poe Newport Beach Tod Ridgeway Don Webb Orange Carolyn Cavecche Steve Ambriz Placentia Norman Z. Eckenrode Constance Underhill Santa Ana Alberta Christy Mike Garcia Seal Beach Patricia Campbell Paul Yost Stanton Brian Donahue David Shawver Tustin Tony Kawashima Doug Davert Villa Park Robert McGowan Richard A. Freschi Yorba Linda Michael Duvall Keri Lynn Wilson r, Sanitary/Water Districts: Costa Mesa Sanitary District James M. Ferryman Arlene Schafer WNW Midway City Sanitary District Joy Neugebauer Grace Epperson Irvine Ranch Water District Brian Brady Darryl Miller County Areas: 6W Member of the Board of Supervisors Jim Silva Chuck Smith kw bw x WW mm ORANGE COUNTY SANITATION DISTRICT Organizational Chart ,m June 30, 2003 am 7GENERAL r GENERAL ry COUNSEL OFFICE ADMINISTRATION HUMAN RESOURCES FINANCE INFORMATION OPERATIONS& TECHNICAL ENGINEERING AND EMPLOYEE TECHNOLOGY MAINTENANCE SERVICES DEVELOPMENT ADMINISTRATIVE HUMAN FINANCE INFORMATION OPERATIONS& TECHNICAL ENGINEERING SERVICES RESOURCES ADMINISTRATION TECHNOLOGY MAINTENANCE SERVICES ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION COMMUNICATIONS EMPLOYEE ACCOUNTING CUSTOMER& ENVIRONMENTAL PLANNING hid DEVELOPMENT/ NETWORK REGIONALASSETS AND COMPLIANCE& TRAINING SUPPORT SERVICES MONITORING SAFETY& PURCHASING& PROGRAMMING FACILITIES =ENVIRONMENTAL PROJECT HEALTH WAREHOUSE 8 DATABASE MAINTENANCE MANAGEMENT SYSTEMS SERVICES OFFICE HUMAN PROCESS PROCESS SOURCE ENGINEERING& RESOURCES CONTROLS ENGINEERING CONTROL CONSTRUCTION imal INTEGRATION PLANT NO.1 OPERATIONS PLANT NO.2 OPERATIONS �1 MECHANICAL MAINTENANCE& POWER PRODUCTION ELECTRICAL& INSTRUMENTATION �1 MAINTENANCE AIR QUALITY& SPECIAL PROJECTS low rl xi ORANGE COUNTY SANITATION DISTRICT Map of Service Area June 30, 2003 LOS ANGELES COUNTY low —SREA �.,�u O Rti9R �Kk — / �\ y \ �co oco r. OJ 5G \ G1'T} GtiTy �i. YORBA LINDA ,,�,,, FULLERTON_ PLACENTIA cf' rr - %b PALMA BUENA ANAHEIM O PARK 5 t4 Lmc I CYPRESS5 s siv Re VILLA * ' ANAHEIM PAR LOS STANTON ORANGE rr ALAMITOS YI z GARDEN GROVE i.. SEAL BEACH TMINSTER MIDWAY SANTA ANA \ CITY I/ r r 0 TUSTIN -_i- 4 _ Wamer Avo- FOUNTA VALLEY • Nofk Oc— HUNTINGTON BEAC COSTA MESA 73 �K o Reclamation " Plant No. 1 \ ❑ IRVINE s fmrpnc Grtui Treatment NEWP RT BEA ■.. Plant No. 2 oJN�V SAHIT,�T7o r... b amu%a 1 yv° � O N 9 ¢ n O y �1 cT�NG THE ENv�PO ♦ Orange County Sanitation District(OCSD) U—Pumps Orange County,CA um Kap r.,ea ae..(—A.) Orange 1999 XII Financial Section 1 1 I 1 1 1 1 l 1 1 1 1 i 1 l 1 1 1 1 Financial Section t 1201 DOVE STREET,SUITE 680 oreland NEWPORT BEACH,CALIFORNIA 92660 M �yr,(y, (949)221-0025 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE.SUITE 260 SAN MARCOS.CA 92069 (760)752.3390 August 28, 2003 The Honorable Board of Directors of the Orange County Sanitation District Independent Auditors' Report We have audited the accompanying basic financial statements of the Orange County Sanitation District (District), as of and for the year ended June 30, 2003, as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above presently fairly, in all material respects, the financial position of the District as of June 30, 2003, and the changes in financial position and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated August 28, 2003 on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The management's discussion and analysis identified in the accompanying table of contents is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain, limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the basic financial statements of the District. The introductory section, supplementary information, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. 1 W i ' W W (THIS PAGE INTENTIONALLY LEFT BLANK) W W W W I W �.J W W 2 Changes in Net Assets The increase in net assets for FY 2002-03 was $36.4 million, an increase of 34.6 percent from the prior year's increase. June 30, June 30, Increase Increase 2003 2002 (Decrease) (Decrease) Revenues: Operating revenues $ 89,164 $ 80,005 $ 9,159 11.4% Non-operating revenues 81,332 81,975 (643) -0.8% Total revenues 170,496 161,980 8,516 5.3% _y Expenses: Operating expense other than depreciation and amortization 79,669 68,563 11,106 16.2% Depreciation and amortization 43,695 46,990 (3,295) -7.0% Non-operating expense 13,925 22,014 (8,089) -36.7% Total expenses 137,289 137,567 (278) -0.2% Income before capital contributions 33,207 24,413 8,794 36.0% Capital contributions (distributions), net 3,166 2,600 566 21.8% Increase in net assets 36,373 27,013 9,360 34.6% Beginning net assets 973,974 946,961 27,013 2.9% Ending net assets $ 1,010,347 $ 973,974 $ 36,373 3.7% As previously stated, an enterprise fund is used to account for the operations of the District, which is financed and operated in a manner similar to private business enterprises. This allows the District to determine that the costs (expenses, including depreciation and amortization) of providing wastewater management services on a continuing basis are financed or recovered primarily through user charges. Sources of Revenue Functional Expenses June 30,2003 June 30,2003 6% 9% 10% 15% .. 4 ❑Collections ❑User Fees ■Treatment& ■Taxes Levied = « _ 32% Disposal ❑Interest r{; 53/° ❑Depreciation& ❑Other ' Amortization 26% 49% ❑Interest Expense 5 AAW Sewer service fees are evaluated annually based primarily on budget requirements for total operation, �, maintenance and capital expenditures for providing wastewater management services. Property tax revenues are dedicated for the payment of debt service. In FY 2002-03, operating revenues increased $9.2 million, or 11.4 percent over the prior year, reflective of the$9.0 million, or 11.3 percent increase in service charges. The increase in service charges is primarily due to (1) the increase in the average sewer user fee rate of 9.4 percent over the prior year, (2) the increase in residential and non-residential construction of $3.75 billion during FY 2002-03, and (3) the 6, increase in percentage of total property tax and user fees collected by the County to the total levy from 99.78 percent in FY 2001-02 to 99.88 percent in FY 2002-03. The 0.8 percent decrease in non-operating revenues includes a $2.2 million, or 7.8 percent decline in `�' investment and interest income and a $1.5 million 68.0 percent decline in other non-operating revenue, offset somewhat by a $3.5 million, or 8.4 percent increase in property tax revenues. This decrease in investment and interest income is attributable to both lower cash and investment balances and lower yields earned on investments over the prior year. Cash and investment balances declined in FY 2002-03 from the prior year by$38.2 million from $465.3 million to $427.1 million, or 8.2 percent, while the yields earned on investments declined from 5.96 percent to 5.80 percent during this same time period. The $3.5 million increase in property tax revenues is reflective of the continuing upturn in the real estate market as total assessed valuations have also increased over the prior year by 8.2 percent. The $1.5 million decline in other revenue is attributable to a non-recurring adjustment in retirement obligations in FY 2001-02. Of the 16.2 percent increase in operating expense before depreciation and amortization, collection system operating activities decreased 32.6 percent, or $6.3 million, while treatment and disposal operating expenses increased by 25.8 percent, or $13.7 million. The decline in collection system LW operating activities is attributable to the reduction in supplies, repairs, and maintenance cost of $3.4 million, or 54.1 percent from the prior year due to the repair costs of a force main in FY 2001-02. The increase in treatment and disposal operating expenses is primarily due to the increase in supplies, iW repairs, and maintenance of $8.6 million, or 301.6 percent, the increase in contractual services of $1.9 million, or 17.2 percent, and the increase in salaries and benefits of $3.2 million, or 10.5 percent. The - increase in supplies, repairs, and maintenance is primarily attributable to the policy decision made by the District's Board of Directors to fully disinfect the effluent discharged out the District's ocean outfall that required additional chemicals of$5.7 million over the prior year. The increase in contractual services is primarily attributable to the$1.1 million increase in biosolid removal cost based on the Board of Directors' decision to optimize the existing secondary treatment facilities to achieve the highest possible treatment standards. Although salaries and benefits expense increased $3.2 million, or 10.5 percent within the treatment and disposal activities, they decreased slightly by $0.1 million, or 3.1 percent, within the collection activities. This net increase of$3.1 million in salaries and benefits operating expense is part of the overall increase in District salaries and benefits of$4.5 million when including salaries and benefits capitalized within the capital improvement program. Including salaries and benefits capitalized within construction projects, total District salaries and benefits were $47.3 million, a 10.5 percent increase from the prior year. This increase is attributable to the addition of 30 full time equivalent employees over the prior year that were necessary to support the District's decision to disinfect the ocean discharge and to optimize the existing secondary treatment facilities to achieve the highest possible treatment standards. The 36.7 percent, or $8.1 million decrease in non-operating expense is comprised of a decrease of$1.7 million, or 11.6 percent in interest expense, a decrease of$2.7 million, or 69.6 percent in capital grants to +..� member agencies, and a $3.7 million, or 99.3 percent decrease in other non-operating expense. The $1.7 million reduction in interest expense is the result of the favorable decline in the daily and weekly interest rates on the District's variable rate certificates of participation debt program that fell from a composite average of 1.54 percent in FY 2001-02 to a composite average of 1.17 percent in FY 2002-03. W 6 bw aud A total of $1.2 million in capital grants was provided to member agencies for funding the repair and replacement of local sewers owned and maintained by member agencies in order to reduce rainfall induced inflow and infiltration into the District's treatment facilities. The District trunk sewers comprise roughly three percent of the overall length of sewers in the District's service area. The remaining 97 percent are private and local agency owned smaller diameter sewers and laterals. The $3.7 million decrease in other non-operating expense is attributable to the obsolescence of unusable 1=W inventory and expensing capacity rights that had expired in FY 2001-02. The net increase in capital contributions of $0.6 million, or 21.8 percent, is attributable to payments received by the Irvine Ranch Water District for their increased equity share in treatment plant facilities. aw Capital Assets tm At June 30, 2003, the District had a net investment of $940 million in capital assets. This amount represents a net increase (including additions and deletions)of$66.0 million, or 7.6 percent over the prior year. tew (Dollars in thousands) WW Percentage June 30, June 30, Increase Increase 2003 2002 (Decrease) (Decrease) 00 Land $ 10,399 $ 10,399 $ - 0.0% Construction in Progress 244,214 177,713 66,501 37.4% a, Sewage collection facilities 245,997 244,721 1,276 0.5% Sewage treatment facilities 333,885 333,717 168 0.1% Sewage disposal facilities 52,365 54,646 (2,281) -4.2% General and administrative facilities 53,140 52,810 330 0.6% bw Capital assets, net $ 940,000 $ 874,006 $ 65,994 7.67 Major capital asset additions for the current fiscal year included the following: a • $30.4 million on the construction of 16 Additional Primary Clarifiers at Plant No. 1 • $8.2 million on Area Classification Studies • $7.2 million on the Bushard Trunk Sewer Rehabilitation $5.5 million on the Headworks Improvements at Plant No.2 • $5.2 million on the Investigation and Repair of Ocean Outfall • $5.1 million on the Ground Water Replenishment System • $4.0 million on the Short term Outfall Bacteria Reduction 'z $3.5 million on the Standby Power and Reliability Modifications • $2.5 million on the Solids Storage and Truck Loading Facility The District's FY 2003-04 capital budget forecasts spending of$200.0 million with a total CIP budget-to- completion of $2.5 billion. More detailed information about the District's capital assets is provided in Notes 1 and 3 of Notes to the Financial Statements. 7 Debt Administration _ i At June 30, 2003, the District had $365.0 million outstanding in certificates of participation (COP), a net decrease of $11.0 million, or 2.9 percent from the prior year. This decrease is due to the installment payments made by the District as no new long-term debt was issued. The District maintains an Aa3 from Moody's Investor Services, an AA/A-1 from Standard and Poor's Corporation, and an AA from Fitch. The District's long-range financing plan is designed to maintain these _ high ratings. Over the next ten years,the District is projecting an additional $2.2 billion in future treatment plant and collection system capital improvements. In accordance with the District's long-term debt fiscal 6W policy, the District will restrict long-term borrowing to capital improvements that cannot be financed from current revenue. In August 2003, the District issued $280 million of new COP fixed rate debt as reimbursement for capital improvements constructed over the past three years, and a share of those to be constructed over the next two years. A total of$1.1 billion in COP debt issuance is being proposed over the next ten years with a new issuance scheduled for every other year. These financings are needed early in the 20-year capital WW improvement program because the bulk of the construction is scheduled during the next ten years. Economic Factors and Next Year's Budgets and Rates • The unemployment rate within the County of Orange is currently 4.0 percent, which is a decrease from a rate of 4.1 percent a year ago. 6+ ■ Inflation for Orange County in FY 2003-04 is projected to be 2.7 percent based on the 2002 projected percentage change in consumer price index obtained from the December 2002 Economic and Business Review report prepared by Chapman University. 6" • Projected rate of return on investments was decreased from the 5.80 percent earnings rate in FY 2002-03 to 4.0 percent for FY 2003-04. da All of these factors were considered in preparing the District's budget for FY 2003-04. The District user fee schedule was increased by 14.3 percent for FY 2003-04 over the prior year. The fee applicable to the District's largest customer base, the single-family residential fee, increased annually $12.50 from $87.50 to $100.00. These rate increases were necessary to finance the District's cash flow needs as capital improvement outlays alone increased 29.5 percent to $200.0 million, and are projected to total $2.2 billion over the next 10 years in order to rehabilitate and upgrade existing facilities and provide for full secondary treatment standards. Requests for Information The financial report is designed to provide a general overview of the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information ►mi should be addressed to the Finance Department, Orange County Sanitation District, P.O. Box 8127, Fountain Valley, CA 92728-8127. Lad Inj +mod taw tod Isd Mai ORANGE COUNTY SANITATION DISTRICT BASIC FINANCIAL STATEMENTS taw bw aw ,wl� WEI Ind �d ORANGE COUNTY SANITATION DISTRICT Statement of Net Assets June 30, 2003 (With Comparative Data for June 30, 2002) 2003 2002 6W Current assets: Cash and cash equivalents $ 7,142,459 $ 149,889,829 Investments 385,300,317 279,796,096 Accounts receivable, net of allowance for uncollectibles 7,646,687 9,211,697 Accrued interest receivable 4,103,715 3,629,425 - Due from other governmental agencies 1,635,825 3,090,263 Connection fees receivable 917,859 1,460,201 Property tax receivable 1,289,484 1,066,242 Inventories 4,882,228 4,261,509 Prepaid and other assets 876,702 903,427 Total current assets 413,795,276 453,308,689 - Noncurrent assets: W' Restricted: Cash and cash equivalents 2,938,113 551,400 Investments 31,709,443 35,013,427 Accrued interest receivable 534,038 505,919 Unrestricted: Capital assets, net 939,999,879 874,005,916 Deferred charges 1,843,374 1,956,177 Excess purchase price over book value on acquired assets, net 8,797,947 9,455,656 Other assets, net 6,043,422 4,166,023 Low Total noncurrent assets 991,866,216 925,654,518 Total assets 1,405,661,492 1,378,963,207 Current liabilities: Accounts payable 16,029,577 13,958,885 Accrued expenses 5,479,532 6,252,998 Retentions payable 1,428,429 964,054 Interest payable 3,073,632 3,266,440 Current portion of long-term obligations 15,459,439 15,638,321 Total current liabilities 41,470,609 40,080,698 Noncurrent liabilities: I LW Noncurrent portion of long-term obligations 353,843,588 364,908,824 Total liabilities 395,314,197 404,989,522 Net assets: Invested in capital assets, net of related debt 578,647,534 501,997,165 Restricted for debt service 35,181,594 36,070,746 Unrestricted 396,518,167 435,905,774 Total net assets $1,010,347,295 $ 973,973,685 W See Accompanying Notes to Basic Financial Statements. 10 ww ORANGE COUNTY SANITATION DISTRICT Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2003 tmw (With Comparative Data for the Year Ended June 30, 2002) 2003 2002 m Operating revenues: Service charges $ 88,640,114 $ 79,609,023 Permit and inspection fees 523,866 395,931 Imm Total operating revenues 89,163,980 80,004,954 Operating expenses other than depreciation °" and amortization: Salaries and benefits 38,732,528 35,628,682 Utilities 4,622,254 4,967,535 ww Supplies, repairs and maintenance 14,383,290 9,164,056 Contractual services 15,958,742 13,933,729 Directors'fees 139,751 146,014 bw Meetings and training 999,103 724,158 Other 4,833,132 3,999,043 Total operating expenses other than ww depreciation and amortization 79,668,800 68,563,217 Operating income before depreciation M, and amortization 9,495,180 11,441,737 Depreciation and amortization 43,036,601 46,332,349 Amortization of excess purchase price over tow book value on acquired assets 657,709 657,709 Operating loss (34,199,130) (35,548,321) ulw Non-operating revenues: Property taxes 44,591,496 41,139,450 Investment and interest income 25,888,943 28,073,413 ar Connection fees 10,145,758 10,560,167 Other 705,706 2,202,455 Total non-operating revenues 81,331,903 81,975,485 ow Non-operating expenses: Interest 12,731,179 14,406,429 ,o, Capital grants to member agencies 1,168,254 3,837,510 Other 26,010 3,770,753 Total non-operating expenses 13,925,443 22,014,692 ow Income before capital contributions 33,207,330 24,412,472 Capital contributions from other agencies 3,166,280 2,600,045 aw Change in net assets 36,373,610 27,012,517 Total net assets-beginning 973,973,685 946,961,168 No Total net assets-ending $1,010,347,295 $973,973,685 o' See Accompanying Notes to Basic Financial Statements. 11 ORANGE COUNTY SANITATION DISTRICT Statement of Cash Flows For the Year Ended June 30, 2003 (With Comparative Data for the Year Ended June 30, 2002) ►-J 2003 2002 Cash flows from operating activities: Receipts from customers and users $ 93,042,680 $ 76,603,626 Payments to employees (38,388,953) (36,026,686) Payments to suppliers (40,025,486) (27,208,290) Net cash provided by operations 14,628,241 13,368,650 Cash flows from noncapital financing activities: Connection fees 10,688,100 9,479,824 Proceeds from property taxes 44,368,254 41,092,705 Grants to member agencies (1,168,254) (3,837,510) Net cash provided by noncapital financing activities 53,888,100 46,735.019 Cash flows from capital and related financing activities: Additions to property, plant and equipment (112,913,330) (83,857,457) Disposal of property, plant,and equipment 523,794 3,531,584 Additions to other assets (2,231) (4,147) Disposal of other assets 2,231 4,147 Interest paid (11,661,494) (13,146,377) Principal payments on certificates of participation (11,024,999) (10,370,000) Proceeds from capital contributions 3,012,734 1,780,499 Net cash used by capital and related financing activities (132,063,295) (102,061,751) Cash flows from investing activities: Proceeds from the sale of investments 4,324,857,132 1,779,710,290 Purchases of investments (4,425,681,766) (1,687,990,859) Interest received 24,010,931 29,209,472 Net cash provided (used) by investing activities (76,813,703) 120,928,903 Net increase(decrease) in cash and cash equivalents (140,360,657) 78,970,821 Cash and cash equivalents, beginning of year 150,441,229 71,470.408 Cash and cash equivalents,end of year $ 10,080,572 $ 150,441,229 Reconciliation of operating loss to net cash provided by operating activities: Operating loss $ (34,199,130) $ (35,548.321) Adjustments to reconcile operating loss to net cash provided by operations: Depreciation and amortization 43,694,310 46.990,058 Other non-operating revenues and expenses 746,185 1,273,694 (Increase)/decrease in operating assets: �`' Accounts receivable 1,565,010 (4,626,401) Due from other governmental agencies 1,607,984 (960,354) Inventories (99,535) 652,572 Prepaid and other assets 26,725 (10,426) Increase/(decrease)in operating liabilities: Accounts payable 2,070,692 2,372,948 Accrued expenses (773,466) 1,742,186 �' Retentions payable 464,375 664,161 Arbitrage payable (283,170) 587,390 Compensated absences 220,885 192,950 Claims and judgments (412,624) 38,193 Net cash provided by operations $ 14,628,241 $ 13,368,650 Noncash Activities: Unrealized gain on the fair value of investments $ 1,375,603 $ 1,421,443 Disposal of assets with no cash effect (66,489) 2,841,992 See Accompanying Notes to Basic Financial Statements. 12 6w ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 (1) Summary of Significant Accounting Policies Reporting Entity The Orange County Sanitation District(District) is a public agency which owns and operates certain wastewater facilities in order to provide regional wastewater collection, treatment, and disposal services to approximately 2.4 million people in the northern and central portion of the County of Orange, California. The District is managed by an administrative organization comprised of directors appointed by the agencies and cities which are serviced by the District. The District's service area was originally formed in 1954 pursuant to the County Sanitation District Act and consisted of seven independent special districts. Two additional districts were formed and additional service areas were added in 1985 and 1986. These special districts were jointly responsible for the treatment and disposal facilities which they each used. In April of 1998, the Board of Supervisors of Orange County passed Resolution 98-140 approving the consolidation of the existing nine special districts into a new, single sanitation district. This action was taken in order to simplify the governance structures, reduce the size of the District's Board of Directors, ease administrative processes, streamline decision-making and consolidate accounting and auditing processes. Pursuant to the Resolution and Government Code Section 57500, the predecessor special districts transferred and assigned all of their powers, rights, duties, obligations, functions and properties to the District, including all assets, liabilities, and equity. Effective July 1, 1998, the organization became known as the Orange County Sanitation District. The boundaries of two of the previous districts have been maintained for the purpose of collecting sewer user fees at the previously established rate schedules and are known as Revenue Area No. 7 and Revenue Area No. 14. The boundaries of the other seven districts have been consolidated and are collectively referred to as the Consolidated Revenue Area. The District utilizes joint operating and capital outlay accounts to pay joint operating and construction costs of the revenue areas. These joint costs are allocated to each revenue area based on gallons of sewage flow. The accompanying financial statements present the District and its blended component unit, the Orange County Sanitation District Financing Corporation. The Corporation is a legally separate entity although in substance it is considered to be part of the District's operations. The District is considered to be financially accountable for the Corporation which is governed by a board comprised entirely of the District's board members. There is no requirement for separate financial statements of the Corporation; consequently, separate financial statements for the Corporation are not prepared. The Corporation had no financial activity during the fiscal year ended June 30,2003, other than principal and interest payments on certificates of participation which were issued in prior years (see Note 4). The District is independent of and overlaps other formal political jurisdictions. There are many governmental entities, including the County of Orange, that operate within the District's jurisdiction; however, financial information for these entities is not included in the accompanying financial statements in accordance with the provisions of Governmental Accounting Standards Board (GASB)Statement 14. Measurement Focus and Basis of Accounting The District operates as an enterprise activity. Enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the Board of Directors is that the costs(expenses, including depreciation and amortization)of providing him services to the general public on a continuing basis be financed or recovered primarily through user charges. WW (Continued) 13 MW ORANGE COUNTY SANITATION DISTRICT - Notes to Basic Financial Statements June 30,2003 Basis of accounting refers to when revenues and expenses are recognized in the accounts and6W reported in the financial statements. Enterprise funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of related cash flows. The District applies all GASB pronouncements currently in effect as well as Financial Accounting Standards Board Statements and Interpretations, Accounting Principal Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. Operating Plans Each year, District staff prepares an annual operating plan which is adopted by the Board of Directors. The annual operating plan is used to serve as a basis for monitoring financial progress, estimating the levy and collection of taxes, and determining future service charge rates. During the year,these plans may be amended as circumstances or levels of operation dictate. �, Cash Equivalents Investments with original maturities of three months or less are considered to be cash equivalents. low Investments All investments are stated at fair value (the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale). Changes in fair value that occur during the fiscal year are reported as part of investment and interest income. Investment and interest income includes interest earnings and realized and unrealized changes in fair value. Accounts Receivable Accounts receivable is shown net of the allowance for uncollectibles which was $133,715 at June 30,2003. Any unbilled sewer service receivables are recorded at year-end. �+ Inventory Inventory is stated at cost,which approximates market, on a weighted-average basis. Property. Plant and Equipment Outlays for property, plant, equipment, and construction in progress are recorded in the revenue area which will use the asset. Such outlays may be for individual revenue area assets or for a revenue area's share of joint assets. Capital assets of property, plant,and equipment are defined by the District as assets with an initial, individual cost of more than $1,000 and an estimated useful life in excess of three years. Such assets are recorded at cost, except for assets acquired by contribution, which are recorded at fair market value at the time received. Cost includes labor; materials; outside services; vehicle and equipment usage; allocated indirect charges such as engineering, purchasing, supervision and �+ other fringe benefits; and certain administrative and general expenses. Net interest costs are capitalized on projects during the construction period. There were no capitalized interest costs during the fiscal year ended June 30, 2003. Amortization of previously capitalized interest was $893,900 during the fiscal year ended June 30,2003. Depreciation of plant and equipment is provided for over the estimated useful lives of the assets using the straight-line method. The District generally follows the guidelines of estimated useful W lives as recommended in the State of California Controller's Uniform System of Accounts for Waste Disposal Districts, which range from 3 to 75 years. The following are estimated useful fives (Continued) 14 6W aw ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements two June 30, 2003 for major classes of depreciable assets: Sewage collection facilities—50 years, Sewage treatment facilities — 40 years, Sewage disposal facilities — 40 years, and General plant and administrative facilities—11.5 years. �+ Amortization Amortization of the excess purchase price over the book value of assets acquired is provided using the straight-line method over an estimated useful life of 30 years. Discounts and deferred charges on the certificates of participation are amortized to interest expense over the respective terms of the installment obligations based on their effective interest rates(note 4). Restricted Assets Certain assets are classified as restricted because their use is limited by applicable debt covenants. Specifically, the assets are restricted for installment payments due on certificates of participation or are maintained by a trustee as a reserve requirement for the certificates of participation. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. Compensated Absences The District's employees, other than operations and maintenance personnel, are granted vacation and sick leave in varying amounts with maximum accumulations of 200 hours and 560 hours for vacation and sick days earned but unused, respectively. Operations and maintenance personnel accrue "Personal Leave" at a rate of between 60 and 200 hours per year depending on years of service. Personal leave can be accumulated up to a maximum of 400 hours. Vacation and sick leave benefits and personal days are recorded as an expense and liability when earned by eligible employees. In determining the estimated sick leave liability at June 30 of each year, the District assumes that all employee's accumulated sick leave balances will ultimately be paid out at 35 percent of the ending balance. The distribution between current and long-term portions of the liability are based on historical trends. Claims and Judgments The District records estimated losses, net of any insurance coverage under its self-insurance program when it is probable that a claim liability has been incurred and when the amount of the loss can be reasonably estimated. Claims payable includes an estimate for incurred but unreported claims. The distribution between current and long-term portions of the liability are based on historical trends. Property Taxes The County is permitted by State law (Proposition 13) to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed value no more than two percent per year. The District receives a share of this basic levy, proportionate to what was received in the 1976 to 1978 period. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments which become delinquent after December 10 and April 10. The County bills and collects the property taxes and remits them to the District in installments during the year. Property tax revenues are recognized when levied to the extent that they are available to finance current operations. The Board of Directors has designated property tax revenue to be used for the annual debt service requirements prior to being used as funding for current operations. (Continued) 15 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Connection Fee Revenue Connection fees represent fees received from developers and residents to join new or to extend existing trunk sewer systems in excess of the cost to connect. These fees may be used for operating or capital purposes. Capital Contributions Capital contributions consist of charges to certain special districts and agencies for their agreed- r, upon share of additions to capital assets. Operating and Non-operating Revenues and Expenses 601J Operating revenues and expenses result from collecting, treating, and disposing of wastewater and inspection and permitting services. The District's operating revenues consist of charges to customers for the services provided. Operating expenses include the cost of providing these k-W services, administrative expenses, and depreciation and amortization expenses. All revenues and expenses not meeting these definitions and which are not capital in nature are reported as non- operating revenues and expenses. WW Self-Insurance Plans For the year ended June 30, 2003, the District was self-insured for portions of workers' compensation, property damage, and general liability. The self-insurance portion of workers' LOW compensation is $500,000 per person per occurrence with outside excess insurance coverage to $25 million. The self-insured portion for property damage covering fire is 5 percent of insurance subject to $100,000, and $25,000 for flood and all other perils per occurrence with outside excess insurance coverage to $300 million. The District is self-insured for all property damage from the perils of earthquakes. The District also maintains outside comprehensive boiler and machinery insurance with a $100 million per occurrence combined limit with deductibles ranging from $25,000 to $100,000. The District is self-insured for general liability coverage up to $100,000 with excess general liability coverage to $25 million per occurrence. There were no significant changes in insurance coverage during the fiscal year ended June 30,2003. During the past three fiscal years there have been no settlements in excess of covered amounts. Claims against the District are processed by outside insurance administrators. These claims are charged to claims expense based on amounts which will ultimately be paid. Claims incurred but not yet reported have been considered in determining the accrual for loss contingencies. District management believes that there are no unrecorded claims as of June 30, 2003 that would materially affect the financial position of the District. Deferred Compensation Plan The District offers its employees a deferred compensation plan established in accordance with Internal Revenue Code Section 457. The plan permits all employees of the District to defer a portion of their salary until future years. The amount deferred is not available to employees until termination, retirement, death or for unforeseeable emergency. The assets of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. Since the plan assets are administered by an outside party and are not subject to the claims of the District's general creditors, in accordance with GASB Statement 32, the plan's assets and liabilities are not included within the District's financial statements. (Continued) 16 ew ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements bud June 30, 2003 M, New Accounting and Reporting Requirements The District is required to newly apply GASB Technical Bulletin No. 2003-1, "Disclosure Requirements for Derivatives Not Reported at Fair Value on the Statement of Net Assets," for the wo fiscal year ending June 30, 2003. The Technical Bulletin requires additional information to be disclosed about the swap agreements related to the District's Certificates of Participation. These disclosures have been included in Note 5. ,W Reclassifications Certain reclassifications have been made to the prior year data to conform to the current year's presentation. wW (2) Cash and Investments The District follows the practice of pooling cash and investments of all funds except for cash held wd by fiscal agents. Interest income earned on pooled cash and investments is allocated to the various funds based on month-end cash and investment balances. Interest income from cash and investments of funds excluded from pooled cash and investments is recorded directly to the related fund. wn Deposits Deposits in banks are maintained in financial institutions which provide deposit protection on the wn bank balance from the Federal Depository Insurance Corporation. The California Government Code requires California banks and savings and loans to secure local government deposits by pledging government securities equal to 110% of the deposits or by pledging first trust deed wo mortgage notes equal to 150% of the deposits. Deposits are categorized as follows, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 3, to give an indication of the level of credit risk assumed by the Md District at year-end. Category 1- Insured or collateralized with securities held by the District or by its agent in the District's name. AMW Category 2- Collateralized with securities held by the financial institution's trust department or agent in the District's name. Category 3- Uncollateralized or collateralized but the pledged securities are not held in the ^t District's name. Investments ,w Statutes authorize the District to invest in obligations of the U.S. Government, state and local governmental agencies, negotiable certificates of deposit, bankers acceptances, commercial paper, reverse repurchase agreements, and a variety of other investment instruments which are allowable under the California Government Code section 53600 et seq. wn Investments are categorized as follows, in accordance with GASB Statement No. 3, to give an indication of the level of credit risk assumed by the District at year-end. ei Category 1- Insured or registered, or securities held by the District or its agent in the District's name. Category 2- Uninsured and unregistered, with securities held by the purchasing financial wa institution's trust department or agent in the District's name. Category 3- Uninsured and unregistered, with securities held by the purchasing financial institution's trust department or agent but not in the District's name. w� (Continued) 17 i Ir ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2003 Investments Not Subiect to Categorization 601 Investments in the California Local Agency Investment Fund (LAIF) are not categorized as GASB Statement No. 3 does not require categorization of investment pools managed by another government. Also, cash held by trustees is not categorized because the underlying assets of the funds are invested within open-ended mutual funds. Decisions regarding these investments are made by fiscal agents for the District who are acting in accordance with agreements entered into with the District. All such investments are not required to be categorized under interpretive guidelines issued by the GASB_ The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the District's investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by LAW for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. The management of LAW has indicated to the District that as of June 30, 2003 the amortized cost of the pool was$55,429,568,408 and the fair value of the pool was $55,587,336,494. Included in LAIF's investment portfolio are collateralized mortgage 6N obligations, mortgage-backed securities, other asset-backed securities, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. LOW A summary of deposits and investments as of June 30,2003, is categorized as follows: June 30,2003 Carrying Amount Bank hw� Deposits: Unrestricted Restricted Balance Category Demand cash accounts $ 114,494 $ - $ 961,360 2 Cash held by fiscal agents 293,135 3 W, Bank investment contracts: -with JPMorgan Chase Bank - 4,290,000 4,290,000 3 -with US Bank - 29,728,427 29,728,427 3 Total Deposits 114,494 34,311,562 $ 34,979,787 6' Investments: Cash and investments with LAIF 427 - N/A U.S.government securities 291,919,767 - 1 bmi Commercial paper 998,897 - 1 Corporate bonds/notes 88,742,069 - 1 Mutual funds 10,667,122 - NIA iow Investments held with fiscal agents: -mutual funds - 335,994 N/A Total Investments 392,328,282 335,994 Total Carrying Amount $ 392,442,776 $ 34,647,556 Cash and cash equivalents and investments as reported on the statement of net assets: Cash and cash equivalents $ 7,142,459 $ 2,938,113 Investments 385,300,317 31,709,443 $ 392,442,776 $ 34,647,556 (Continued) 18 6W bw ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements 'x.d June 30,2003 Although the bank investment contract with US Bank is classified as category 3, the depositor, AIG Matched Funding Corporation, is required to pledge collateral in an amount equal to 103% of the amount of the investment contract if the long-term, unsecured, unsubordinated debt securities of AIG fall below a S&P rating of"AA-" or below a Moody's rating of"Aa3". At June 30, 2003, the U.S. Government Securities investments included mortgage-backed securities totaling $184,810,063, and the U.S. Government Securities and Corporate Bond investments included floating-rate notes totaling $12,898,432. (3) Property. Plant, Equipment and Construction in Progress Low Capital asset activity for the year ended June 30,2003 is as follows: Balance at Balance at md June 30,2002 Additions Deletions June 30,2003 Capital assets not depreciated: Cost: L.d Land $ 10,398,595 $ 4,405 $ (4,405) $ 10,398,595 Construction in progress 177,712,942 110,667,007 (44,165,710) 244,214,239 Total nondepreciable assets 188,111,537 110,671,412 (44,170,115) 254,612,834 Wd Depreciable capital assets: Cost: Sewage collection facilities 386,202,814 10,242,319 (18,944) 396,426,189 &Ed Sewage treatment facilities 627,673,508 24,687,656 (1,452,302) 650,908,862 Sewage disposal facilities 90,161,860 76,785 (76,785) 90,161,860 General and administrative facilities 122,415,790 7,160,094 (5,455,104) 124,120,780 °`' Subtotal 1,226,453,972 42,166,854 (7,003,135) 1,261,617,691 Accumulated depreciation: Sewage collection facilities (141,481,684) (8,956,328) 8,737 (150,429,275) ftw Sewage treatment facilities (293,956,135) (24,110,984) 1,043,106 (317,024,013) Sewage disposal facilities (35,516,075) (2,312,900) 32,134 (37,796,841) General and administrative facilities (69,605,699) (6,267,396) 4,892,578 (70,980,517) 'm' Subtotal (540,559,593) (41,647,608) 5,976,555 (576,230,646) Net depreciable assets 685,894,379 519,246 (1,026,580) 685,387,045 told Net capital assets $ 874,005,916 $ 111,190,658 $ (45,196,695) $ 939,999,879 ftEd tud tab (Continued) 19 imw ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 W (4) Long-Term Liabilities L, The following is a summary of the changes in long-term debt for the year ended June 30, 2003: Certificates Arbitrage Compensated Claims and of Payable Absences Judgments Participation Totals Balance,July 1 $ 1,043,890 $ 3,804,700 $ 1,733,627 $ 376,000,000 $ 382,582,217 Additions 413,030 3,593,834 63,866 - 4,070,730 Deletions 696,200 3,372,949 476,490 11,025,000 15,570,639 Balance,June 30 760,720 4,025,585 1,321,003 364,975,000 371,082,308 Due within one year - 3,372,949 476,490 11,610,000 15,459,439 Unamortized discount - - - 393,343 393,343 Unamortized deferred amount on refundings - - - 1,385,938 1,385,938 �+ Long-term amount $ 760,720 $ 652,636 $ 844,513 $ 351,585,719 $ 353,843,588 Arbitrage Payable The Tax Reform Act of 1986 (the Act) requires the District to calculate and remit rebatable arbitrage earnings to the Internal Revenue Service. Certain of the District's debt and interest earnings on the proceeds thereof are subject to the requirements of the Act. The District's liability at June 30, 2003 is$760,720 for future years' remittances. Compensated Absences The District's policies related to compensated absences are described in Note 1. The District's liability at June 30, 2003 is $4,025,585 with an estimated $3,372,949 to be paid or used within the next fiscal year. Claims and Judgments Payable The District is self-insured in a number of areas as described in Note 1. The following is a 6.r summary of the claims and judgments payable as of June 30,2003 and 2002: 2002-03 2001-02 Claims and judgments payable at July 1 $1,733,627 $1,695,434 Claims incurred during the fiscal year 63,866 260,950 Payments on claims during the fiscal year (476,490) (222,757) Claims and judgments payable at June 30 1,321,003 1,733,627 Less: current portion (476,490) (514,121) Total long-term claims and judgments payable $ 844,513 $1,219,506 6Rw Certificates of Participation The District issues certificates of participation in order to finance construction of the treatment facilities. Each certificate of participation represents a direct and proportionate interest in the semi- annual interest payments. Installment payments for the issues are payable from any source of lawfully available funds of the District. Certificates of participation at June 30, 2003 are +� summarized as follows: (Continued) W 20 km ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements MW June 30, 2003 tm Amount 1992 refunding certificates of participation $ 113,175,000 1993 refunding certificates of participation 42,900,000 MW 2000 refunding certificates of participation 208,900,000 Total certificates of participation payable $364,975,000 WW Refunded Certificates of Participation 1986 Certificates of Participation MW On August 13, 1986, District Numbers 1, 2 and 3 completed the sale of $117,000,000 of certificates of participation. In December 1992, the entire remaining principal balance of the certificates was refunded with a portion of the proceeds of the December 1992 refunding ,z, certificates of participation (see below) in a transaction accounted for as an in-substance defeasance. The remaining outstanding certificates were called in full on August 1, 1996. 1990-1992 Series A Certificates of Participation On December 5, 1990, all Districts completed the sale of $100,000,000 of certificates of participation. On August 31, 2000, refunding certificates of participation were issued, and a portion of the proceeds (see below) was used to currently refund the remaining principal "' balance, at no call premium, of the 1990-92 Series A certificates on the call date of October 6, 2000. o, 1990-1992 Series B Certificates of Participation On May 1, 1991, District Numbers 1, 2, 3, 5, 6, 7 and 11 completed the sale of$117,555,000 of certificates of participation. This Series was refunded as follows: Md • On December 3,1992, $38,350,000 of the outstanding principal balance of the certificates was refunded with a portion of the proceeds of the December 1992 refunding certificates of participation(see below)in a transaction accounted for as an in-substance defeasance. • On September 1, 1993, $39,740,000 of the outstanding principal balance of the certificates was refunded from the proceeds of the September 1993 refunding certificates of Lim participation(see below)in a transaction accounted for as an in-substance defeasance. • On August 31, 2000, the remaining outstanding principal balance of $15,395,000 was refunded from the proceeds of the August 2000 refunding certificates of participation (see below)in a transaction accounted for as an in-substance defeasance. • All outstanding certificates were called in full with a two percent premium on August 1, 2001. 1990-1992 Series C Certificates of Participation On September 1, 1992, District Numbers 1, 2, 3, 6, 7 and 11 completed the sale of $98,500,000 of certificates of participation. On August 31, 2000, refunding certificates of participation were issued, and a portion of the proceeds (see below) was used to currently refund the remaining principal balance,at no call premium,of the 1990-92 Series C certificates on the call date of October 6,2000. (Continued) 21 WW ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 Outstanding Certificates of Participation jam, December 1992 Refunding Certificates of Participation On December 3, 1992, the District completed the sale of$160,600,000 of refunding certificates , of participation. The certificates were issued to refund the remaining outstanding principal balance of the 1986 certificates of participation and $38,350,000 of the outstanding principal balance of the 1990-92 Series B certificates of participation (see above). The interest rate on the refunding certificates is adjusted by the remarketing agent daily based on market interest rates. The weighted average interest rate for the fiscal year ended June 30, 2003 was 1.26 percent. On October 1, 1992, the District and a brokerage company entered into an interest rate exchange swap agreement (Note 5). Annual principal payments are due August 1, beginning August 1, 1993. The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2003 reserve of $12,417,540 is held by the trustee, US Bank, (Note 2) and meets the reserve requirement. Additionally, AMBAC provides municipal bond insurance for the certificates. September 1993 Refunding Certificates of Participation On September 2, 1993, the District completed the sale of $46,000,000 of refunding certificates , of participation. The certificates were issued to refund $39,740,000 of the outstanding principal balance of the 1990-92 Series B certificates of participation (see above). The interest rate on the refunding certificates is adjusted by the remarketing agent daily based on market interest rates. The weighted average interest rate for the fiscal year ended June 30, 2003,was 1.20 percent. On September 1, 1993, the District and a brokerage company entered into an interest rate exchange swap agreement (Note 5). Annual principal payments are due LOW August 1, beginning August 1, 1995. The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2003 reserve of $4,404,278 is held by the kow trustee, JPMorgan, (Note 2)and meets the reserve requirement. August 2000 Refunding Certificates of Participation Law On August 31, 2000, the District completed the sale of$218,600,000 of refunding certificates of participation. The certificates were issued to refund the remaining outstanding principal balance of the 1990-92 Series A, B, and C certificates of participation (see above) and to �Mw reimburse the District for improvements made to the wastewater system. The interest rate on the refunding certificates is adjusted by the remarketing agent daily based on market interest rates. The weighted average interest rate for the fiscal year ended June 30, 6.' 2003 was 1.21 percent. Annual principal payments are due August 1, beginning August 1, 2001. The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2003 reserve of $17,311,427 is held by US Bank,the trustee, (Note 2)and meets the reserve requirement. law (Continued) ►n., 22 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2003 Annual Amortization Requirements The annual requirements to amortize all debt related to certificates of participation as of June 30, 2003,are as follows: Estimated Year Interest Rate Ending Estimated Swaps, Net June 30, Principal Interest (See Note 5) Total 2004 $ 11,610,000 $ 3,113,984 $ 6,629,665 $ 21,353,649 2005 12,040,000 3,009,495 6,300,574 21,350,069 2006 12,755,000 2,901,013 5,801,479 21,457,492 2007 13,465,000 2,786,663 5,258,793 21,510,456 2008 14,265,000 2,665,578 4,681,336 21,611,914 2009-2013 84,300,000 11,235,846 14,089,953 109,625,799 2014-2018 124,640,000 6,259,008 2,114,352 133,013,360 2019-2023 77,900,000 1,473,225 - 79,373,225 2024-2028 8,200,000 421,050 - 8,621,050 2029-2031 5,800,000 57,450 - 5,857,450 Total $364,975,000 $33,923,312 $44,876,152 $443,774,464 (5) Interest Rate Swaps on Certificates of Participation tam As indicated in Note 4, the District has entered into interest rate swap agreements in connection with the 1992 and the 1993 Refunding Certificates of Participation. Objective: The objective of the interest rate swaps is to lower the District's borrowing costs when compared against fixed-rate bonds at the time of issuance. The swaps effectively change the District's variable interest rate to a synthetic fixed rate of 5.55 percent on the 1992 Refunding Certificates of Participation and to a synthetic fixed rate of 4.56 percent on the 1993 Refunding Certificates of Participation. 1992 Refunding Certificates of Participation Terms of the Swap: On October 1, 1992, the District and a brokerage company entered into an interest rate exchange swap agreement pursuant to which the District will pay a fixed interest rate of 5.55 percent. The District will receive a variable interest rate equal to the interest paid to the "" holders of the certificates which is based on a tax exempt daily interest rate as determined by the remarketing agent on an initial notional amount of $160,600,000. The notional value of the swap declines in tandem with the principal amount of the associated debt. This interest rate swap bmi agreement is accounted for as a hedge, and the associated interest rate differential to be paid or received is charged to interest expense as interest rates change. The 20-year swap agreement matures on August 1,2013. Fair Value: Because interest rates have declined since execution of the swap agreement, the swap had an estimated negative fair value of $19.1 million as of June 30, 2003. Because the variable-rate certificates adjust to changing interest rates, the certificates do not have a Hod corresponding fair value increase. The fair value was estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. WW (Continued) 23 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 These payments are then discounted using the spot rates implied by the current yield curve for 6W hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. Credit Risk. As of June 30,2003, the District was not exposed to credit risk because the swap had a negative fair value. However, should interest rates change, and the fair value of the swap + become positive, the District would be exposed to credit risk in the amount of the swap's fair value. The swap's counterparty, AIG Financial Products Corporation, was rated AAA by Standard & Poor's and Aaa by Moody's Investors Service as of June 30, 2003. To mitigate the potential for credit risk, if the counterparty's credit quality falls below AA- by Standard & Poor's or Aa3 by Moody's Investors Service, the fair value of the swap (if the swap has a positive fair value)will be collateralized by the counterparty as follows: 1)with bonds, debentures and other debt issued or guaranteed by the United States of America equaling 106 percent of the fair value, or 2) with �+ securities issued by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association equaling 108 percent of the fair value, or 3) other securities to be agreed upon and in an amount to be agreed upon by the District, the counterparty, and the Swap Insurer. The collateral would be held by a third-party custodian. Basis Risk: The swap does not expose the District to basis risk because the variable-rate interest paid to the certificate holders is equal to the variable-rate interest earned on the notional amount of jam, the swap. Termination Risk., The District or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. In the event of termination due to default, the defaulting imW party will pay to the non-defaulting party the excess (if any) of the sum of the settlement amount and the unpaid amounts owed less the unpaid amounts due from the non-defaulting party. The swap may be terminated by the District if the counterparty's credit quality rating falls below AA-by Standard &.Poor's or Aa3 by Moody's Investors Service. If the swap is terminated, the variable- `" rate certificates of participation would no longer carry a synthetic interest rate. 1993 Refunding Certificates of Participation Terms of the Swap: On September 1, 1993,the District and a brokerage company entered into an interest rate exchange swap agreement pursuant to which the District will pay a fixed interest rate of 4.56 percent. The District will receive a variable interest rate equal to the interest paid to the holders of the certificates which is based on a tax exempt daily interest rate as determined by the remarketing agent on an initial notional amount of $46,000,000. The notional value of the swap declines in tandem with the principal amount of the associated debt. This interest rate swap agreement is accounted for as a hedge, and the associated interest rate differential to be paid or ►� received is charged to interest expense as interest rates change. The 22-year swap agreement matures on August 1, 2016. Fair Value: Because interest rates have declined since execution of the swap agreement, the swap had an estimated negative fair value of $5.1 million as of June 30, 2003. Because the variable-rate certificates adjust to changing interest rates, the certificates do not have a corresponding fair value increase. The fair value was estimated using the zero-coupon method. jam, This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. Credit Risk. As of June 30, 2003, the District was not exposed to credit risk because the swap had a negative fair value. However, should interest rates change, and the fair value of the swap become positive,the District would be exposed to credit risk in the amount of the swap's fair value. The swap's counterparty, Societe Generale Bank,was rated AA-by Standard & Poor's and Aa3 by (Continued) L' 24 6W m ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2003 Moody's Investors Service as of June 30, 2003. To mitigate the potential for credit risk, if the counterparty's credit quality falls below AA- by Standard & Poor's or Aa3 by Moody's Investors Service, the fair value of the swap (if the swap has a positive fair value)will be collateralized by the counterparty as follows: 1) with securities issued or guaranteed by the United States Government equaling 106 percent of the fair value, or 2) with securities issued by the Federal Nome Loan Mortgage Corporation, the Federal National Mortgage Association, or the Govemment National Mortgage Association equaling 108 percent of the fair value, or 3) other securities to be agreed upon and in an amount to be agreed upon by the District, the counterparty, and the Swap Insurer. The collateral would be held by a third-party custodian. Basis Risk. The swap does not expose the District to basis risk because the variable-rate interest paid to the certificate holders is equal to the variable-rate interest earned on the notional amount of the swap. Termination Risk:The District or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. In the event of termination due to default, the defaulting party will pay to the non-defaulting party the excess (if any) of the sum of the settlement amount and the unpaid amounts owed less the unpaid amounts due from the non-defaulting party. The ,OW swap may be terminated by the District if the counterparty's credit quality rating falls below AA- by Standard & Poor's or Aa3 by Moody's Investors Service. If the swap is terminated, the variable- rate certificates of participation would no longer carry a synthetic interest rate. No (6) Net Assets The difference between assets and liabilities is reported as net assets. Net assets are classified as restricted, unrestricted, or invested in capital assets, net of related debt. Net assets at June 30, 2003 consisted of the following: June 30,2003 Invested in capital assets, net of related debt: Capital assets, net of accumulated depreciation $ 939,999,879 Outstanding debt issued to acquire capital assets, net of unamortized bond discount and deferred amount on refundings (363,195,719) Unamortized deferred charges of debt issued to acquire capital assets 1,843,374 Subtotal 578,647,534 Restricted by debt covenants for debt service on certificates of participation 35,181,594 Unrestricted 396,518,167 $1,010,347,295 (7) Pension Plan The District participates in the Orange County Employee's Retirement System (OCERS), a cost-sharing multiple-employer, defined benefit pension plan which is governed and administered by a nine member Board of Retirement. OCERS was established in 1945 under the provisions of the County Employees Retirement Law of 1937, and provides members with retirement, death, disability, and cost-of-living benefits. OCERS issues a stand-alone comprehensive annual financial report which can be obtained from OCERS at 2223 Wellington Avenue, Santa Ana, California 92701. (Continued) 25 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2003 Benefits All District full-time employees participate in OCERS. Employees who retire at or after age 50 with ten or more years of service are entitled to an annual retirement allowance. The amount of the retirement allowance is based upon the member's age at retirement, the member's "final compen- sation n as defined in Section 31462 of the Retirement Law of 1937, the total years of service under OCERS, and the employees' classification as a Tier I or Tier II member. Benefits fully vest on reaching five years of service. OCERS also provides death and disability benefits. Contributions As a condition of participation under the provisions of the County Employees Retirement Law of 1937, members are required to contribute a percentage of their annual compensation to OCERS. Tier I and Tier II covered employees are required to contribute 4.89% -7.51%and 6.66%- 10.23%, respectively, of their annual compensation to OCERS. The District is required to make periodic contributions to OCERS in amounts that are estimated to remain a constant percentage of covered employees' compensation such that, when combined with covered employees' contributions, will fully provide for all covered employees' benefits by the time they retire. For the fiscal year ended June 30,2003,2002,and 2001,the required contribution equaled the contribution actually made. low The following table provides salary and contributions requirements for the current and two prior fiscal years. For the Fiscal Year Ending June 30,2003 June 30,2002 June 30,2001 Total Payroll Costs $ 38,514,484 $ 36,387,839 $ 34,309,332 Payroll Costs of Employees Covered by OCERS 35,341,483 32,391,018 30,293,967 Contributions Requirements: Contributed by Employees 1,072,477 1,030,924 949,425 LOW Contributed by the District on Behalf of Employees 1,549,829 1,457,596 1,363,229 Total Employee Required Contribution 2,622,306 2,488,520 2,312,654 District Required Contribution 1,943,056 765,459 308,712 Total Contribution $ 4,565,362 $ 3,253,979 $ 2,621,366 Law Employee Required Contribution as a Percent of Covered Payroll 7.42% 7.68% 7.63% 6d District Required Contribution as a Percent of Covered Payroll 5.50% 2.36% 1.02% Total Contribution as a Percent Wd of all Participating Entities' Contributions 4.11% 4.03% 3.42% LAW (8)Transactions with Irvine Ranch Water District Revenue Area No. 14 LOW Revenue Area No. 14 was formed as a result of a negotiated Agreement between the District and Irvine Ranch Water District(IRWD)as of July 1, 1985. Pursuant to the Agreement, IRWD paid the (Continued) 26 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements m June 30,2003 ,l, District$34,532,000 for an initial 15,000,000 gallons per day capacity in the District's joint treatment facilities (with an ultimate collection capacity of 32,000,000 gallons per day), together with a pro-rata interest in real property based on flow of 32,000,000 gallons per day.The book value of the assets purchased by IRWD was determined to be$14,553,000 as of June 30, 1986. The excess of t=' the purchase price over the assets'book value of$19,979,000 at June 30, 1986 is being amortized over the remaining 30-year useful lives of the joint assets of Revenue Area No. 14. As of June 30, 2003, $11,181,053 of the excess of purchase price over the assets'book value was amortized. bod IRWD entered into a separate agreement with Revenue Area No. 14 whereby IRWD agreed to annually fund payment of Revenue Area No. 14's proportionate share of the District's joint capital outlay revolving fund budget requirements and certain capital improvements during the term of the L=J agreement, which contribution amounted to$3,166,280 in 2003. Consolidated Revenue Area IRWD has entered into an agreement with the District to provide funding to the Consolidated Revenue Area for the construction costs of certain wastewater collection, transmission, treatment and disposal facilities to be used by IRWD (the "Downcoast Agreement"). No new funding occurred in 2003. The agreement also provides that IRWD would not be required to pay ""m connection fees related to development in the Downcoast Area (as defined in the Downcoast Agreement). tw (9)Commitments Groundwater Replenishment System: In March 2001, the District entered into an agreement with the Orange County Water District, California, to design and construct Phase 1 of the"Groundwater 'a' Replenishment System" (GWRS). The cost of this project is to be paid equally(50 percent shares) by each agency. The GWRS is a joint effort by the two agencies to provide reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion wid barrier. The GWRS is planned for three phases, Phase 1 will produce approximately 72,000 acre- feet per year of recycled water by June 2007, Phase 2 will increase the total capacity to 112,000 acre-feet by the year 2010, and Phase 3 will increase the total capacity to 145,600 acre-feet per year by the year 2020. Following the completion of Phase 1, the GWRS will have the capacity to divert up to 100 million gallons per day of flow from the District's ocean discharge. As of June 30, 2003, the total estimated cost of GWRS Phase 1 was $453.90 million. Of this amount, up to $92.50 million may be reimbursed through grants from the U.S. Environmental Protection Agency, the U.S. Bureau of Reclamation, the State Water Resources Control Board, and others. The District's estimated gross and net share is $226.95 million and $180.70 million, respectively. Costs incurred by the District through June 30,2003 total $15.40 million. Secondary Treatment: On July 17, 2002, the Board of Directors Approved Resolution No. OCSD- 14, "Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean". This resolution established the District's policy to treat all wastewater discharges into the ocean to secondary treatment standards thereby providing for continued public safety, marine ecosystem protection, and water reclamation opportunities. To implement this policy, District staff was directed to immediately proceed with the planning, design, and implementation of treatment '_' methods that will allow the agency to meet Federal Clean Water Act secondary treatment standards. taw The District estimates that it will take approximately eleven years and additional capital improvement costs of $271 million to reach secondary treatment discharge standards. In the interim, the District will operate the plants to maximize available secondary treatment and to reduce (Continued) 27 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2003 6W effluent biochemical oxygen demand and suspended solid discharges below currently allowed 6, limits. Each year the current 50 percent secondary portion will increase incrementally as operations change and new facilities are constructed and placed in service over the next eleven years. LAW (10)Subsequent Events Certificates of Participation Issued. On August 26, 2003, the District issued $280.0 million Series 2003 Certificates of Participation to finance or reimburse the acquisition, construction and �' installation of additional improvements to the wastewater system. The net proceeds of the issuance amounted to $277.4 million after payment of$2.6 million in underwriting fees, insurance, and other issuance costs. Of the net proceeds, $27.0 million was deposited into a reserve fund jam,, and the remaining $250.4 million was deposited into an acquisition fund for financing of additional improvements to the wastewater system. Change in Insurance Coverage:The following changes are effective on July 1, 2003: 1)the District joined the California Public Entity Insurance Authority and increased the outside excess insurance coverage of workers' compensation from $25 million to $50 million, 2) the self-insured retention for general liability insurance increased from $100,000 to $250,000 per occurrence, and 3) the self insured retention for flood damage increased from $25,000 to $100,000 and the related outside excess insurance coverage increased from $300 million to$750 million. low 6W 6W Y� Yti 6W 28 mj m Lori ORANGE COUNTY SANITATION DISTRICT SUPPLEMENTARY INFORMATION lad kd Loci tmri Uri 29 ORANGE COUNTY SANITATION DISTRICT Combining Statement of Net Assets June 30, 2003 With Comparative Totals for June 30, 2002 Revenue Revenue Consolidated Totals Area No.7 Area No. 14 Revenue Area 2003 2002 W Current assets: Cash and cash equivalents $ 393,261 $ 123,638 $ 6,625,560 $ 7,142,459 $ 149,889,829 Investments 21,214,476 6,669,658 357,416,183 385,300,317 279,796,096 Accounts receivable, net of allowance for uncollectibles 757,171 115.417 6,774,099 7,646,687 9,211,697 Accrued interest receivable 393,546 120,239 3,589,930 4,103,715 3,629,425 Due from other governmental agencies - 1,635,825 - 1,635,825 3,090,263 Connection fees receivable 110,154 - 807,705 917,859 1,460,201 �+ Property tax receivable 118,852 - 1,170,632 1,289,484 1,066,242 Inventories 468,206 143,050 4,270,972 4,882,228 4,261,509 Prepaid and other assets 84,081 25,688 766,933 876,702 903,427 Total current assets 23,539,747 8,833,515 381,422,014 413,795,276 453,308,689 Noncurrent assets: Restricted: low Cash and cash equivalents 231,409 - 2,706,704 2,938,113 551,400 Investments 2,497,466 - 29,211,977 31,709,443 35,013,427 Accrued interest receivable 25,174 - 508,864 534,038 505,919 how Unrestricted: Capital assets, net 100,305,222 42,427,508 797,267,149 939,999,879 874,005,916 Deferred charges 149,659 - 1,693,715 1,843,374 1,956,177 Excess purchase price over book L=d value on acquired assets,net - 8,797,947 - 8,797,947 9,455,656 Other assets,net 686,761 114,172 5,242,489 6,043,422 4,166,023 Total noncurrent assets 103,895.691 51,339,627 836,630,898 991.866,216 925,654,518 Total assets 127,435,438 60,173,142 1,218,052,912 1,405,661,492 1,378.963,207 Current liabilities: Accounts payable 1,610,590 459,276 13,959,711 16,029,577 13,958,885 Accrued expenses 525,424 165,104 4,789,004 5,479,532 6,252,998 Retentions payable 139,462 39,218 1,249,749 1,428,429 964054 Interest payable 114,345 - 2,959,287 3,073,632 3,266:440 Current portion of long-term obligations 1,123,126 112,788 14,223,525 15,459,439 15,638,321 Total current liabilities 3,512,947 776,386 37,181,276 41,470,609 40,080,698 Noncurrent liabilities: Noncurrent portion of ,.., long-term obligations 29,547,506 43,866 324,252,216 353,843,588 364,908,824 Total liabilities 33,060,453 820,252 361,433.492 395,314,197 404,989,522 ra Net assets: Invested in capital assets, net of related debt 70,364,015 42,427,508 465.856,011 578,647,534 501,997,165 Restricted for debt service 2,754,049 - 32,427,545 35,181,594 36,070,746 Unrestricted 21,256,921 16,925,382 358,335,864 396,518,167 435,905,774 Total net assets $94,374,985 $59,352,890 $ 856,619,420 $1,010,347,295 $ 973,973,685 30 6W ftwil ORANGE COUNTY SANITATION DISTRICT Combining Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2003 bwW With Comparative Totals for June 30, 2002 Revenue Revenue Consolidated Totals as Area No.7 Area No. 14 Revenue Area 2003 2002 Operating revenues: Service charges $ 9,755,596 $ 2,915,405 $ 75,969,113 $ 88,640,114 $ 79,609,023 L�j Permit and inspection fees 58,144 20,337 445,385 523,866 395,931 Total operating revenues 9,813,740 2,935,742 76,414,498 89,163,980 80,004,954 `w' Operating expenses other than depreciation and amortization: Salaries and benefits 3,923,095 1,063,619 33,745,814 38,732,528 35,628,682 Utilities 448,546 202,577 3,971,131 4,622,254 4,967,535 Supplies,repairs and maintenance 1,629,954 361,018 12,392,318 14,383,290 9,164,056 Contractual services 1,748,867 444,257 13,765,618 15,958,742 13,933,729 Directors'fees 15,373 15,373 109,005 139,751 146,014 k=d Meetings and training 95,793 29,908 873,402 999,103 724,158 Other 453,024 1,397,734 2,982,374 4,833,132 3,999,043 Total operating expenses other than '==' depreciation and amortization 8,314,652 3,514,486 67,839,662 79,668,800 68,563,217 Operating income(loss)before �w depreciation and amortization 1,499,088 (578,744) 8,574,836 9,495,180 11,441,737 Depreciation and amortization 4,995,861 1,560,609 36,480,131 43,036,601 46,332,349 Amortization of excess purchase price over book value on acquired assets - 657,709 - 657,709 657,709 Operating loss (3,496,773) (2,797,062) (27,905,295) (34,199,130) (35,548,321) Non-operating revenues: Property taxes 4,138,258 - 40,453,238 44,591,496 41,139,450 Investment and interest income 1,491,439 314,038 24,083,466 25,888,943 28,073,413 Connection fees 1,878,604 - 8,267,154 10,145,758 10,560,167 Other 133,484 32,558 539,664 705,706 2,202,455 Total non-operating revenues 7,641,785 346,596 73,343,522 81,331,903 81,975,485 Non-operating expenses: Interest 770,912 3,536 11,956,731 12,731,179 14,406,429 Capital grants to member agencies - - 1,168,254 1,168,254 3,837,510 Other 2,014 1,515 22,481 26,010 3,770,753 Total non-operating expenses 772,926 5,051 13,147,466 13,925,443 22,014,692 Income(loss)before capital contributions 3,372,086 (2,455,517) 32,290,761 33.207,330 24,412,472 L�, Capital contributions from other agencies - 3,166,280 - 3,166,280 2,600,045 Change in net assets 3,372,086 710,763 32,290,761 36,373,610 27,012,517 `-' Total net assets-beginning 91,002,899 58,642,127 824,328,659 973,973,685 946,961,168 Total net assets-ending $94,374,985 $59,352,890 $856,619,420 $1,010,347,295 $973,973,685 wd 31 ORANGE COUNTY SANITATION DISTRICT Combining Statement of Cash Flows For the Year Ended June 30,2003 With Comparative Totals for June 30,2002 Revenue Revenue Consolidated Totals Area No.7 Area No. 14 Revenue Area 2003 2002 Cash flows from operating activities: Receipts from customers and users $ 9,999,481 $ 5,420,525 $ 77,622,674 $ 93,042,680 $ 76,603.626 Payments to employees (3,993,479) (1,051,654) (33,343,820) (38,388,953) (36,026,686) Payments to suppliers (4,237,246) (2,374,527) (33,413,713) (40,025,486) (27,208,290) Net cash provided(used)by operations 1,768,756 1,994,344 10,865,141 14,628,241 13.368,650 Cash flows from noncapital financing activities: Connection fees 1,802,140 - 8,885,960 10,688,100 9,479,824 Proceeds from property taxes 4,124,323 - 40,243,931 44,368.254 41,092,705 Grants to member agencies - - (1,168,254) (1,168,254) (3,837,510) +�+ Net cash provided by noncapital financing activities 5,926.463 - 47,961,637 53,888,10D 46,735,019 Cash flows from capital and related financing activities: Additions to property,plant and equipment (11,964,372) (3,273,655) (97,675,303) (112,913,330) (83,857,457) Disposal of property,plant,and equipment 243,457 280,337 - 523,794 3,531,584 Additions to other assets (2,231) (2,231) (4,147) Disposal of other assets 1,116 1,115 2,231 4,147 Interest paid (701,436) - (10,960,058) (11,661,494) (13,146,377) Principal payments on certificates of participation (726,111) - (10,298,888) (11,024,999) (10,370,000) Proceeds from capital contributions - 3,012,734 - 3,0121734 1,780,499 Net cash used by capital and related financing activities (13,147,346) 20,531 (118,936,480) (132,063,295) (102,061,751) r.a Cash flows from investing activities: Proceeds from the sale of investments 258,612,498 83,912,949 3,982,331,685 4,324,857,132 1,779,710,290 Purchases of investments (262,911,788) (87,637,263) (4,075,132,715) (4,425,681,766) (1,687,990,859) Interest received 1,425,572 267,981 22,317,378 24,010,931 29,209,472 Net cash provided(used)by investing activities (2,873,718) (3,456,333) (70,483,652) (76,813,703) 120,928,903 _ Net increase(decrease)in cash and cash equivalents (8,325,845) (1,441,458) (130,593,354) (140,360,657) 78,970,821 Cash and cash equivalents,beginning of year 8.950,515 1,565,096 139,925,618 150,441,229 71,470,408 Cash and cash equivalents,end of year $ 624,670 $ 123,638 $ 9,332,264 $ 10,080,572 $ 150,441.229 Reconciliation of operating loss to net cash provided (used)by operating activities: Operating loss $ (3,496,773) $(2,797,062) $ (27,905,295) $ (34,199,130) $ (35,548.321) Adjustments to reconcile operating toss to net cash provided(used)by operations: Depreciation and amortization 4,995,861 2,218,318 36,480,131 43,694,310 46,990,058 Other non-operating revenues and expenses 138,424 33,104 574,657 746,185 1,273,694 (Increase)ldecrease in operating assets: Accounts receivable 2,007 1,280,789 282,214 1,565,010 (4,626,401) Due from other governmental agencies 50,250 1,171,436 386,298 1,607,984 (960,354) Inventories 63,599 (11,832) (151,302) (99,535) 652,572 Prepaid and other assets 17,099 (1,294) 10,920 26,725 (10,426) Increasel(decrease)in operating liabilities: Accounts payable 155,350 68,415 1,846,927 2,070.692 2,372,948 tow Accrued expenses (140,680) 6,356 (639,142) (773,466) 1,742,186 Retentions payable 78,698 21,210 364,467 464,375 664,161 Arbitrage payable 10,261 - (293,431) (283.170) 587,390 Compensated absences (38,551) 13,700 245,736 220,885 192,950 ►� Claims and judgments (66,789) (8,796) (337,039) (412,624) 38,193 Net cash provided by(used for)operations $ 1,768,756 $1,994.344 $ 10,865,141 $ 14,628,241 $ 13,368,650 Noncash Activities: Unrealized gain on the fair value of investments $ 75,740 $ 23,812 $ 1,276,051 $ 1,375,603 $ 1,421,443 Net disposal of assets with no cash effect (6,954) (2,061) (57,474) (66,489) 2,841,992 r.i 32 ui �+ ORANGE COUNTY SANITATION DISTRICT Schedule of Changes in Net Assets by Activity and Revenue Area For the Year Ended June 30,2003 Revenue Revenue Consolidated Area No. 7 Area No. 14 Revenue Area Totals Collection activities: Revenues and capital contributions: Permit and inspection fees $ 31,155 $ 12,091 $ 199,196 $ 242,442 Other revenues 108,532 24,935 312,049 445,516 Other capital contributions - 3,166,280 - 3,166,280 Total revenues and capital contributions 139,687 3,203,306 511,245 3,854,238 Expenses: Salaries and benefits 639,151 60,289 3,789,637 4,489.077 Utilities 60,715 84,086 433,354 578,155 Supplies, repairs and maintenance 528,304 24,432 2,343,091 2,895,827 Contractual services 486,404 58,539 2,249,425 2,794,368 Directors'fees 15,373 15,373 109,005 139,751 Meetings and training 1,092 974 9,543 11,609 Other expenses 195,553 1,319,972 637,826 2,153,351 Total expenses 1,926,592 1,563,665 9,571,881 13,062,138 Usti Net collection activities (1,786,905) 1,639,641 (9,060,636) (9,207,900) too Treatment and disposal activities: Revenues: Service charges 236,187 72,161 2,154,501 2,462,849 Permit and inspection fees 26,989 8,246 246,189 281,424 L.d� Investment and interest income 364 111 3,317 3,792 Other revenues 24,952 7,623 227,615 260,190 Total revenues 288,492 88,141 2,631,622 3,008,255 imi Expenses: Salaries and benefits 3,283,944 1,003,330 29,956,177 34,243,451 Utilities 387,831 118,491 3,537,777 4,044,099 Low Supplies, repairs and maintenance 1,101,650 336,586 10,049,227 11,487,463 Contractual services 1,262,463 385,718 11,516,193 13,164,374 Meetings and training 94,701 28,934 863,859 987,494 ,5w Other expenses 259,485 79,277 2,367,029 2,705,791 Total expenses 6,390,074 1,952,336 58,290,262 66,632,672 Net treatment and disposal activities (6,101,582) (1,864,195) (55,658,640) (63,624,417) Unallocated revenues(expenses): Service charges 9,519,409 2,843,244 73,814,612 86,177,265 m Property taxes 4,138,258 - 40,453,238 44,591,496 Investment and interest income 1,491,075 313,927 24,080,149 25,885,151 Connection fees 1,878,604 - 8,267,154 10,145,758 twi Interest expense (770,912) (3,536) (11,956,731) (12,731,179) Capital grants to member agencies - - (1,168,254) (1,168,254) Depreciation and amortization (4,995,861) (2,218,318) (36,480,131) (43,694,310) Total unallocated revenues(expenses) 11,260,573 935,317 97,010.037 109,205,927 mj Total change in net assets $ 3,372,086 $ 710,763 $ 32,290,761 $ 36,373,610 wo 33 L L L L THIS PAGE INTENTIONALLY LEFT BLM19 L Ll L L L L L 34 Statistical Section / Statistical Section ORANGE COUNTY SANITATION DISTRICT _ Expenses by Type (Dollars in Thousands) Last Ten Fiscal Years $130.000 $120,000 $110,000 $100.000 $90,000 $80,000 $70,000 S60,000 S50,000 S40,000 W.. S30,000 S20,000 $10,000 SO 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 ■Operating Expense ❑Non Operating Expense ,- Operating Non -Operating Fiscal Personal Maint & Depr& Total Interest Total Non- Year Services Utilities Other Amort Operating Expense Other(1) Operating _ 1993-94 S 28,886 S 4,589 $ 21,599 S 33,988 $ 89,062 S 16,964 $ 2,414 S 19,378 1994-95 29,399 3,180 27,369 34,087 94,035 23,941 826 24,767 1995-96 32,660 2,978 26,114 34,001 95,753 20,731 7,648 28,379 _ 1996-97 31,523 3,744 22,851 35,284 93,402 21,237 1,497 22,734 1997-98 28,725 3,328 22,526 35,841 90,420 19,232 1,330 20,562 1998-99 28,809 3,320 22,546 42,492 97,167 18,359 70 18,429 1999-00 33,581 3,621 22,213 36,383 95,798 18,151 23,073 41,224 2000-01 33,734 5,524 23,062 44,188 106,508 17,923 88 18,011 2001-02 35,629 4,967 27,967 46,990 115,553 14,406 7,609 22,015 2002-03 38,733 4,622 36,314 43,694 123,363 12,731 1,194 13,925 Notes (1) - For FY 1999-00, Other Non-Operating Expense includes S22,994,647 for the loss on investment in the Orange County Investment Pool. Source: Orange County Sanitation District's Accounting Division. 35 ORANGE COUNTY SANITATION DISTRICT Revenues and Gross Capital Contributions by Source (Dollars in Thousands) " Last Ten Fiscal Years $94.384 $70,788 .� t- S47.192 S23,596 - SO - -- - - - 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000.01 2001-02 2002-03 Operating Revenue ■Non-Operating Revenue O Contributed Capital Capacity Operating Revenue Non-Operating Revenue Rights & Permit& Total Capital Fiscal Service Inspection Total Property Connection Non- Contrib- Year Charges Fees Operating Taxes Interest Fees Other Operating utions 1993-94 S 73,400 S 540 S 73,940 $ 35,854 S 33,226 S 5,745 $ 8,751 $ 83,576 $ 8,459 1994-95 72,909 240 73,149 27,286 18,500 6,577 4,408 56,771 15,587 1995-96 71,362 120 71,482 29,285 20,209 9,493 4,224 63,211 2,266 1996-97 64,923 258 65,181 28,193 20,958 9,687 3,390 62,228 12,876 1997-98 59,517 329 59,846 31,287 27,897 11,251 3,283 73,718 1998-99 69,453 423 69,876 32,836 17,944 8,751 3,332 62,863 141 1999-00 81,241 396 81,637 35,557 20,836 7,867 2,573 66,833 4,589 2000-01 72,566 688 73,254 38,411 39,868 7,332 1,835 87,446 1,271 .� 2001-02 79,609 396 80,005 41,140 28,073 10,560 2,202 81,975 8.603 2002-03 88,640 524 89,164 44,591 25,889 10,146 706 81.332 3,166 Source: Orange County Sanitation District's Accounting Division. 36 ORANGE COUNTY SANITATION DISTRICT Property Tax and User Fee Levies and Collections (Dollars in Thousands) Last Ten Fiscal Years S140,0c0 S120,000 $100.000 s80.000 s60.000 _ S40,000 S20.000 so 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 ❑Total Tax and User Fee Levy ■Total Tax and User Fee Collection Current Total Tax 4b of Total Tax Tax and Percent of Delin- and User %of Total O/S Delinquen- Fiscal and User User Fee Levy quent Fee Collection Delinquen- cies to Tax Year Fee Levy Collection Collected Collection Collection to Levy cies Levy 1993-94 $92,728 S 92,545 99.80°'o S 5,953 S 98,498 106.22 S 184 0.20'-o 1994-95 92,353 91,945 99.56 86 92,031 99.65 408 0.44 1995-96 91,775 91,596 99.80 812 92,408 100.69 179 0.20 1996-97 89,794 89,570 99.75 180 89,750 99.95 224 0.25 1997-98 90,589 90,078 99.44 81 90,159 99.53 510 0.56 _ 1998-99 98,557 98,267 99.71 74 98,341 99.78 291 0.30 1999-00 107,948 107,794 99.86 72 107,866 99.92 154 0.14 2000-01 105,890 105,646 99.77 94 105,740 99.86 245 0.23 2001-02 112,419 112,087 99.70 83 112,170 99.78 332 0.30 2002-03 122.450 122,210 99.80 98 122,308 99.88 241 0.20 Source: Orange County Auditor- Controller's Office. 37 ORANGE COUNTY SANITATION DISTRICT Assessed and Estimated Actual Value of Taxable Property (Dollars in Millions) Last Ten Fiscal Years S 180,000 $160,000 $140.000 - �r S120,000 $100,000 r S80,000 $60.000 $40.000 S20,000 r. so 1993-94 1994-95 1995-96 1996-97 1997-98 1998.99 1999-00 2000-01 2001-02 2002-03 ■Secured Property Assessed Value ❑Unsecured Property Assessed Value Secured Property Unsecured Property Totals Estimated Estimated Estimated Ratio of Total - Fiscal Assessed Actual Assessed Actual Assessed Actual Assessed to Year Value Value Value Value Value Value Estimated Value 1993-94 $124,016 $124,016 $3,963 $3,963 $127,979 $127,979 100% 1994-95 123,525 123,525 3,871 3,871 127,396 127,396 100 1995-96 122,524 122,524 3,372 3,372 125,896 125,896 100 1996-97 122,304 122,304 3,247 3,247 125,551 125,551 100 _ 1997-98 125,018 125,018 3,302 3,302 128,320 128,320 100 1998-99 131,295 131,295 3,394 3,394 134,689 134,689 100 1999-00 142,126 142,126 3,507 3,507 145,633 145,633 100 2000-01 155,544 155,544 3,778 3,778 159,322 159,322 100 2001-02 169,357 169,357 4,066 4,066 173,423 173,423 100 2002-03 183,223 183,223 5,657 5,657 188,880 188,880 100 Source: Orange County Auditor - Controller's Office. 38 MW ORANGE COUNTY SANITATION DISTRICT Property Tax Rates - Direct and Overlapping Governments y (per$100 of asessed value) Last Ten Fiscal Years rr Basic OCSD#11, 1958 Fiscal Year 1%Levy Bond I&R Fund Total 1993-94 1.00000 0.00019 1.00019 1994-95 1.00000 0.00019 1.00019 1995-96 1.00000 0.00018 1.00018 "r 1996-97 1.00000 0.00010 1.00010 1997-98 1.00000 0.00010 1.00010 1998-99 1.00000 0.00020 1.00020 rd 1999-00 1.00000 0.00000 1.00000 2000-01 1.00000 0.00000 1.00000 MW 2001-02 1.00000 0.00000 1.00000 2002-03 1.00000 0.00000 1.00000 r.l Source: County of Orange Auditor-Controller's Office. r.l ORANGE COUNTY SANITATION DISTRICT &No Principal Users For the Year Ended June 30, 2003 aw %to Total Service Service Charge w+ User Charges Revenue Stremicks Heritage Foods, LLC $564,646 0.64% Alstyle Apparel-Activewear Mfg. 488,492 0.55% bw Disneyland Resort&Park 374,719 0.42% MCP Foods, Inc. 309,590 0.35% ,r House Foods America Corp. 284,033 0.32% Kimberly-Clark Worldwide, Inc. 244,106 0.28% Royalty Carpet Mills, Inc. 211,966 0.24% ow Nor-Cal Beverage Co., Inc. (Main) 191,326 0.22% Seven-Up Bottling Company 186,113 0.21% WW Knotts Berry Farm Foods 180,651 0.20% $3.035� 642 3.43% r Source: Orange County Sanitation District's Accounting Division. halo 39 rr ORANGE COUNTY SANITATION DISTRICT Ratio of Annual Debt Service for Bonded Debt to Total Expenses (Dollars in Thousands) Last Ten Fiscal Years 60.0°0 �r 50.04° rr 40.0°o 30.0% 20.0% 10.04b 0.0% - - r 1993.94 1994-95 1995-96 1996-97 1997-98 1998.99 1999-00 2000-01 2001-02 2002-03 Ratio of Debt - Principal Total Debt Total Operating Service to Total Fiscal Year (1) Interest Service Expenses(2) Operating Expenses 1993-94 S 11.990 $16,964 $28,954 $55,074 52.57% - 1994-95 9,670 25,439 35,109 59,948 58.57 1995-96 10,180 21,298 31,478 61,752 50.97 1996-97 10,680 20,463 31,143 58,118 53.59 1997-98 11,320 20,008 31.328 54,579 57.40 1998-99 12,120 18,475 30,595 54,675 55.96 _ 1999-00 12,880 17,169 30,049 59,415 50.57 2000-01 13,790 16,690 30,480 62,320 48.91 2001-02 10,370 13,051 23,421 68,563 34.16 2002-03 11,025 11,433 22,458 79,669 28.19 Notes (1) - Excludes principal reductions due to advanced refunding. (2) - Excludes depreciation and amortization expense. Source: Orange County Sanitation District's Accounting Division. 40 r. ORANGE COUNTY SANITATION DISTRICT Bond Coverage (Dollars in Thousands) Last Ten Fiscal Years 4 3.5 ... 3 2.5 rr 2 1.5 .r 1 0.5 0 N 1993-94 ❑1994-95 ■1995-96 ❑1996-97 ■1997-98 ■1998-99 ■1999-00 13 2000-01 ■2001-02 0 2002-03 Direct Net Revenue Fiscal Gross Operating Avail. For Debt Service Requirements Year Revenue(1) Expenses(2) Debt Service Principal (3) Interest Total Coverage(4) 1993-94 $157,516 $55,074 $102,442 $11,990 $16,964 $28,954 3.54 1994-95 129,920 59,948 69,972 9,670 25,439 35,109 1.99 1995-96 134,693 61,752 72,941 10,180 21,298 31,478 2.32 1996-97 127,409 58,118 69,291 10,680 20,463 31,143 2.22 1997-98 133,564 54,579 78,985 11,320 20,008 31,328 2.52 1998-99 132,739 54,675 78,064 12,120 17,261 29,381 2.66 1999-00 148,470 59,415 89,055 12,880 17,069 29,949 2.97 2000-01 160,700 62,320 98,380 13,790 16,690 30,480 3.23 2001-02 161,980 68,563 93,417 10,370 13,051 23,421 3.99 2002-03 170,496 79,669 90,827 11,025 11,433 22,458 4.04 Notes (1)- Includes non-operating revenues and excludes capital contributions. (2)- Excludes depreciation and amortization expense. (3)- Excludes principal reductions due to advanced refunding. (4) - Coverage requirements per the certificate of participation indenture agreements range from 1.0 to 1.25. It is the District's policy to be in compliance with all bond covenants, and the District has the ability to raise user fees by a vote of the Board of Directors. Source: Orange County Sanitation District's Accounting Division. 41 i ORANGE COUNTY SANITATION DISTRICT Lr Computation of Direct and Overlapping Debt June 30, 2003 1 2002-03 Assessed Valuation(Land& Improvements Only): $170,296,453,956(after deducting S18,583,723,645 redevelopment incremental valuation) %Applicable Debt 6/30/03 Overlapping Tax and Assessment Debt (Based on redevelopment adjusted all property assessed valuation of$177,302,740,118): Orange County Teeter Plan Obligations 72.984% $ 90,810,342 Metropolitan Water District of Southern California 15.661 69,581,040 Coast Community College District 99.521 109,473,100 North Orange County Joint Community College District 96.978 134,799,420 Rancho Santiago Community College District 98.099 94,297,664 Brea-Olinda and Laguna Beach Unified School Districts 97.686&5.597 17,842,876 Newport Mesa Unified School District 99.999 39,499,605 Placentia-Yorba Linda Unified School District 98.553 44,346,682 Santa Ana Unified School District 100.000 144,233,156 Anaheim and Fullerton Joint Union High School Districts 100.000 126,322,735 School Districts 100.000 142,795,664 Cities Various 7,667,801 Irvine Ranch Water District Improvement Districts Various 232,244,536 j Yorba Linda County Water District,I.D. Nos. 1 and 2 93.257& 100.000 3,833,594 y Other Special Districts 100.000 825,000 Bonita Canyon Community Facilities District No.98-1 100.000 44,580,000 Irvine Unified School District Community Facilities District No.86-1 99.997 102,251,932 1 Tustin Unified School District Community Facilities District No.88-1 and 97-1 100.000 164,182.000 Orange County Community Facilities District No.87-4 99.961 73,927,291 Other Community Facilities Districts Various 246,515.866 Orange County Assessment Districts 100.000 106,596.008 City of Irvine 1915 Act Bonds 100.000 720,601.022 City of Tustin 1915 Act Bonds 100.000 66,964,000 V Other 1915 Act Bonds Various 28.231996 Total Overlapping Tax and Assessment Debt $2,812,425.330 Direct and Overlapping Other Debt: i Orange County General Fund Obligations 72.984% $ 711,731,940 6od Orange County Pension Obligations 72.984 88,144,596 Orange County Board of Education Certificates of Participation 72.984 14,582,203 Orange County Transit District Authority 72.984 4,506,762 1 Coast Community College District Certificates of Participation 99.521 8,081,105 w South Orange County Community College District Certificates of Participation 34.158 14,739,177 Brea-Olinda Unified School District Certificates of Participation 97.686 32,783,422 Orange Unified School District Certificates of Participation 96.196 50,983,880 Santa Ana Unified School District Certificates of Participation 100.000 50,400,849 Other Unified School District Certificates of Participation Various 14,799,639 6W Anaheim and Fullerton Union High School District Certificates of Participation Various 32,252,631 School District Certificates of Participation Various 27,225,126 City of Anaheim General Fund Obligations 99.174 713,080,451 City of Fullerton General Fund Obligations 100.000 38,208,443 City of Huntington Beach General Fund Obligations 99.984 84,332,518 City of Irvine General Fund Obligations 100.000 53,520.000 City of Santa Ana General Fund Obligations 100.000 138.805,489 Other City General Fund Obligations Various 153,574,763 Orange County Sanitation District Certificates of Participation(1) 100.000 -0- Irvine Ranch Water District Certificates of Participation 88.478 44,946,824 Municipal Water District of Orange County Water Facilities Corporation 67.417 32,282,630 Orange County Fire Authority 44.805 11,358,068 Other Special District Certificates of Participation 100.000 145,000 Total Gross Direct and Overlapping Other Debt $2,320,485,516 Less: Orange County Transit District Authority(80%self-supporting) 3,605,410 City of Anaheim self-supporting obligations 648,413,233 Other City self-supporting obligations 524,942 MWDOC Water Facilities Corporation(100%self-supporting) 32,282,630 Total Net Direct and Overlapping Other Debt $1,635,659,301 Gross Combined Total Debt(2) $5.132,910,846 Net Combined Total Debt $4,448,084,631 L (1) Excludes certificates of participation supported by wastewater revenues. (2) Excludes tax and revenue anticipation notes,revenue,mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to: Land&Improvement Assessed Valuation All Property Assessed Valuation Total Overlapping Tax and Assessment Debt 1.49% N/A V Gross Combined Total Debt 3.01% 2.89% Net Combined Total Debt 2.61% 2.51% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/02: $24,796,482 Source: California Municipal Statistics. LJ 42 L am ORANGE COUNTY SANITATION DISTRICT Demograhic Statistics Covering The Entire County of Orange(1) Last Ten Fiscal Years (2) (3) (5) Population Median (4) Public School (6) Fiscal Estimates Family Median Enrollment Unemployment Year (in Thousands) Income Age (In Thousands) Rate 1993-94 2,597 54,413 32.6 402 5.7% 1994-95 2,641 55,507 32.9 412 5.1% 1995-96 2,624 57,106 31.9 422 4.1% 1996-97 2,632 59,629 32.2 443 3.2% 1997-98 2,615 61,812 30.4 458 2.9% ,d 1998-99 2,776 64,611 31.8 471 2.6% 1999-00 2,828 69,310 32.6 483 2.9% 2000-01 2,880 70,577 (7) 34.2 494 3.0% 2001-02 2,940 70,887 (7) not available 503 4.1% 2002-03 2,979 72,985 (7) not available 512 4.0% tw Notes and Data Sources (1)-The Orange County Sanitation District services 471 square miles or 59% of the total 799 square miles that make up the boundaries of the County of Orange. (2)-Data Source-Demographic Research Unit, California Department of Finance. (3)-Data Source-Anderson Center for Economic Research, Chapman University (4)-Data Source-Center for Demographic Research, California State University, Fullerton. m (5)-Data Source-California Department of Education, Educational Demographics Unit. (6) - Data Source - State of California, Employment Development Department as of June 30 of each fiscal year. (7)-Estimated number. 43 ORANGE COUNTY SANITATION DISTRICT Property Value and Construction 6w Covering The Entire County of Orange(i) (Dollars In Thousands) Last Ten Fiscal Years low Non- LIW Assessed Residential Residential Property Value(2) Constr.(3) Construction (3) Total Fiscal Calendar No. of Construction ,b, Year Value Year Value Units Value Value(3) 1993-94 $178,761,413 1994 $ 560,558 12,644 $1,745,301 $2,305,859 1994-95 176,974,944 1995 582,712 8,300 1,295,297 1,878,009 1995-96 172,508,373 1996 760,809 10,207 1,528,835 2,289,644 1996-97 177,300,663 1997 1,079,687 12,251 2,007,084 3,086,771 1997-98 182,284,316 1998 1,529,698 10,101 1,864,084 3,393,782 1998-99 192,625,739 1999 1,614,422 12,348 2,262,492 3,876,914 1999-00 209,136,472 2000 1,762,142 12,367 2,210,775 3,972,917 2000-01 228,548,301 2001 1,349,607 8,646 1,905,321 3,254,928 2001-02 248,966,581 2002 1,208,381 11,868 2,328,143 3,536,524 2002-03 269,684,864 2003 (4) 1,076,678 14,010 2,668,915 3,745,593 Notes and Data Sources �+ (1) - The Orange County Sanitation District services 471 square miles or 59% of the total 799 square miles that make up the boundaries of the County of Orange. (2)-Data Source-Orange County Auditor-Controller's Office. (3)-Data Source-"The Chapman University Economic& Business Reivew." (4)-Forecasted numbers. 44 �.a ORANGE COUNTY SANITATION DISTRICT Estimated Populations Served by the Orange County Sanitation District June 30, 2003 Population as of January 1,2003 Anaheim 337,400 Brea 37,950 Buena Park 80,600 Costa Mesa 111,500 Cypress 47,650 Fountain Valley 56,300 Fullerton 131,500 Garden Grove 169,900 Huntington Beach 197,000 Irvine 164,900 La Habra 61,200 1e, La Palma 15,950 Los Alamitos 11,800 Newport Beach 80,000 Orange 134,500 Placentia 49,100 Santa Ana 347,200 Seal Beach 24,900 Stanton 38,400 Tustin 69,800 Villa Park 6,200 Westminister 90,600 Yorba Linda 62,700 ,d Subtotal City(1) 2,327,050 Estimated Population Served in Unincorporated Areas(2) 81,000 2,408,050 Data Sources: (1) Demographic Research Unit, California Department of Finance. � (2) Orange County Sanitation District Accounting Division. low 6W 45 w ORANGE COUNTY SANITATION DISTRICT Insurance in Force As of July 1, 2003 ' Type Insurer Deductible Limit All-Risk Property Fire and Other Perils Public Entity Property $25,000 per occurrence $750 million/occurrence Insurance Program Flood Public Entity Property $100,000 per occurrence $300 million/occurrence Insurance Program Earthquake Not Applicable Not Applicable Self-insured Boiler& Machinery Lexington Insurance Co., CNA $25,000 to $100 million/occurrence Insurance Co., and Foreign $100,000 Excess Insurance Co. Employee Dishonesty/ Hartford Fire, National Union $2,500 $1 million/loss; Faithful Performance/ Fire, and Great American $4 million excess policy Errors& Ommissions Insurance Companies Excess Insurance Co of the State of $250,000 $25 million/occurrence General Liability PA(first$10 million and annual aggregate layer); Gulf Underwriters Insurance Company ($15 ,o, million layer excess$10 million) Travel&Accident Nationwide Life Insurance -0- $100,000/person; WW $500,000 aggregate per accident imd Excess Workers' Compensation CA Public Entity Insurance $500,000 $50 million each accident, 6+ Authority Each Accident each employee Source: Orange County Sanitation District's Risk Management Office. 46 ORANGE COUNTY SANITATION DISTRICT Comparison of The Volume of Wastewater Treated With Revenues and Expenses Last Ten Fiscal Years Millions of Gallons of Waste- Treatment water & Disposal Total Total Total Total Treated Cost per Operating Non-Operating Operating Non-Operating Fiscal Per Million Costs Costs Revenues Revenues Year Day Gallons (In Thousands) (In Thousands) (in Thousands) (In Thousands) 1993-94 231 S 508.03 $89,062 $19,378 S73,940 S83,576 1994-95 243 526.98 94,035 24,767 73,149 56,771 1995-96 237 553.25 95,753 28,379 71,482 63,211 1996-97 244 526.29 93,402 22,734 65,181 62,228 1997-98 254 465.75 90,420 20,562 59,846 73,718 1998-99 241 481.96 97,167 18,429 69,876 62,863 1999-00 241 500.75 95,798 41,224 81,637 66,833 2000-01 246 512.78 106,508 18,011 73,254 87,446 2001-02 234 563.09 115,553 22,015 80,005 81,975 2002-03 239 730.32 123,363 13,925 89,164 81,332 An Interim Strategic Plan Update to the year 2020 was completed in September 2002 that projects wastewater treatment flows to increase to 284 millions of gallons per day(mgd) in 2010, to 302 mgd in 2015, and to 321 mgd in the year 2020. In order to manage the anticipated increase in wastewater flows, the District has identified a $2.4 billion capital expansion plan through 2020. Total expenses in FY 2002-03 increased $28.8 million, or 26.6 percent since FY 1993-94, primarily as a result of the expected increase in wastewater flows. Depreciation expense represents 33.6 percent of the increase as a result of the previous expansion in capital facilities and the financing associated with the expansion. In FY 2002-03, maintenance, chemicals, and other operating costs, excluding utilities and depreciation, rose 29.8 percent over the prior year. This increase is due primarily to the District's new policy decisions to fully disinfect the effluent discharged out the District's ocean outfall, costing an additional $5.4 million in chemicals. and to optimize the existing secondary treatment facilities to achieve the highest possible treatment standards, _ resulting in a $1.1 million increase in biosolid removal cost. As depicted from the chart above, actual wastewater treatment flows have steadily increased from 231 mgd in FY 1993-94 to a high of 254 mgd in FY 1997-98, and after falling two consecutive years to 241 mgd, rose up to 246 mgd in FY 2000-01. In FY 2001-02, flows again retreated back to 234 mgd due to dry weather conditions. In FY 2002-03, flows increased to 239 mgd due to normal weather conditions during the year. r Source: Orange County Sanitation District. 47 ORANGE COUNTY SANITATION DISTRICT Biosolids Produced Last Ten Fiscal Years 45000 r. 40000 35000 r.� 30000 25000 20000 r. ■1993-94 ■1994-95 01995-96 ❑1996-97 ❑1997-98 ■1998-99 ■1999-00 0 2000-01 ■2001-02 ■2002-03 Fiscal Year Tonnage 1993-94 39,650 1994-95 40,228 1995-96 38,802 1996-97 39,387 rr 1997-98 42,645 1998-99 41,023 1999-00 42,824 2000-01 42,014 ow 2001-02 43,138 2002-03 43,351 Source: Orange County Sanitation District's Environmental Compliance and Monitoring Division. 48 ORANGE COUNTY SANITATION DISTRICT Miscellaneous Statistics June 30, 2003 District Organization: The Orange County Sanitation District is one consolidated district made up of three •�+ revenue areas which service unincorporated county areas and twenty-three cities and related special districts,as follows: Consolidated Revenue Area Revenue Area No.7 tow County of Orange(unincorporated areas) County of Orange (unincorporated areas) Cities: Cities: Anaheim Irvine Brea Orange Buena Park Santa Ana Costa Mesa Tustin Cypress Special District: Fountain Valley Costa Mesa Sanitary District Fullerton Garden Grove �+ Huntington Beach La Habra La Palma Los Alamitos Revenue Area No. 14 Newport Beach County of Orange (unincorporated areas) Orange Cities: Placentia Irvine Santa Ana Orange Seal Beach Tustin Stanton Special District: Tustin Irvine Ranch Water District Villa Park Westminster Yorba Linda Special Districts: Midway City Sanitary District Costa Mesa Sanitary District Governing Body: 25-member Board of Directors Authorized Full-Time Equivalent Employees: 567 k=d Operational Date: July 1, 1954 Authority: California Health &Safety Code Section 4700 et. seq. Services: Wastewater collection, treatment, and disposal Service Area: 471 square miles Population Served: 2.4 million Total Miles of Trunk and Subtrunk Sewers: 650 miles Number of Pumping Stations: 21 Average Daily Flow(million of gallons per day): '6' Plant 1 87 Plant 2 152 Total Zu b, Source: Orange County Sanitation District's Accounting Division. 49 W L� 6�J W I � (THIS PAGE INTENTIONALLY LEFT BUWlq I� IIi W II fi W W ICJ W 50 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 OCSD 6/30/03 W _ I I 1 Environmental Stewardship N co O ■ j 'r � r A' �►i r r� :I I�Ct: troll V *� Wastewater Management 1 1 1 MCI Table of Contents Section1 -Overview...................................................................................................................1 m Section 2 -Joint Operating Budget Review Chart of the Cost per Million Gallons by Department— Budget and Actual............................1 Chart of the Net Expenses by Major Category— Budget and Actual .....................................1 Divisional Contributions to Gallonage Charge.......................................................................2 Comparison of Expenses by Department..............................................................................3 tod Summary of Expenses by Major Category Summary of Joint Operating Revenues by Line Item ............................................................5 UW Summary of Expenses by Line Item....................... Summary of Expenses by Treatment Process......................................................................8 fto Chart of Staffing Trends........................................................................................................9 Section 3 - Capital Improvement Program Review Capital Improvement Program Graphs by Type and Funding Source...................................1 Summary of Capital Improvement Construction Requirements- Current Year.....................2 Summary of Capital Improvement Construction Requirements - Project Life........................6 Section 4 - Budget Review by Revenue Area Summary Budget Reviews - All Revenue Areas....................................................................1 Consolidated Revenue Area Budget Review.........................................................................2 Revenue Area No. 14 Budget Review ..................................................................................3 Section 5—Self Insurance Budget Review General Liability Fund Budget Review...................................................................................1 Workers' Compensation Fund Budget Review......................................................................2 i 2003-04 First Quarter Report i This Page Intentionally Left Blank hmw lad 6.1 � I Overview First Quarter Financial Report September 30, 2003 The Finance Department is pleased to present the 2003-04 first quarter comprehensive financial report. This report provides the Directors, staff, and the general public with a comprehensive overview of the financial condition of the District and reports on the status of all capital projects in progress. A summary of the sections contained within this report is provided below. Joint Operating Budget Review: At September 30, 2003, 24.42 percent, or$18.81 million of the 2003-04 net joint operating budget of$77.01 million has been expended. Net operating expenses increased by $4.21 million from the same period last year, "" primarily due to 1) increased salaries, wages, and employee benefits as a result of twenty-six additional full-time equivalent employees, 2) increased costs of chemicals as a result of disinfecting the effluent, and 3) increased costs for biosolids removal due to W providing more secondary treatment. The total cost per million gallons at September 30, 2003 is $823.82 based on flows of "d 22.83 billion gallons, or 248.17 million gallons per day. This is $17.81, or 2.12 percent below the budgeted cost per million gallons of$841.63. This lower cost per million gallons is due to net expenses being 2.30 percent, or$0.44 million lower than the proportionate budget through September 30, 2003. This is slightly offset by flows being 0.73 percent lower than the budgeted amount of 250 million gallons per day. �+ Some of the significant joint operating results as of September 30, 2003 include: • Salaries, Wages and Benefits—Joint operating personnel costs were at 23.00 percent of budget through September 30 while staffing was 51 full-time equivalents (FTE's), or 8.56 percent below the total 596 FTE's approved in the 2003-04 budget. Net joint operating personnel costs are expected to be at or below budget at year- end. There are currently 31 positions being recruited. • Memberships— Membership expense totaled $172,200, or 72.91 percent of the $236,200 budget as of September 30 because many of the District's memberships are paid in the first quarter of each year. These costs are expected to approximate budget at year-end. • Operating Expenses—Overall operating expenses totaled $3,223,100, or 20.94 percent of the composite $15,390,750 budget. Chemicals comprise the majority of these operating expenses. The increase in chemical costs is not as large as was anticipated when the budget was prepared. Based on current processes, chemical costs are anticipated to parallel the budget throughout the remainder of the year and d to be at or below budget at year-end. • Professional Services— Overall professional services totaled $544,500, or 19.65 percent of the composite $2,771,100 budget. Legal, Audit & Accounting, FIS Support, and Labor Negotiation Services are all higher than the proportionate Section 1 - Page 1 2003-04 First Quarter Report budget through September 30 due to the timing of when the services are provided. Other professional services are in the planning or request for proposal stages. It is anticipated that the overall costs for this category will increase in the second and third quarters of the fiscal year. • Research & Monitoring— Research & Monitoring costs totaled $416,100, or 25.32 percent of the composite $1,643,000 budget. Due to the timing of when services are provided, Air Quality Monitoring has a cost of zero while Research costs are at 33.20 percent of the budget through September 30. It is anticipated that the overall costs for this category will continue to parallel the budget throughout the remainder of the year. • Utilities— Utilities costs totaled $1,368,200, or 29.31 percent of the composite $4,667,900 budget. These costs are proportionately high through September 30 due to higher than anticipated costs for electricity as a result of high meter readings. Staff is working with Southern California Edison (SCE) regarding differences in `'� District meter readings versus SCE meter readings. It is anticipated that the meter reading difference will be resolved and the cost for electricity will be more in line with `a the budget by the end of the second quarter. • Insurance— Insurance expense totaled $202,600, or 16.21 percent of the Iasi $1,250,000 budget. This expense is lower than the proportionate budget through September 30 due to the budget being prepared prior to the actual premium costs being determined by the insurance broker. Insurance expense is anticipated to total L; approximately $810,000 at year-end. • Net Cost Allocation —Cost allocation totaled $4.60 million, or 19.95 percent of the $23.04 million budget. The allocation of costs to capital projects is expected to increase throughout the rest of the year as the District focuses on the design of secondary treatment facilities. L • Power Sales Revenue— Power sales revenue is $6,500, or 1.65 percent of the $390,000 budget through September 30. This revenue is proportionately low due to two potential problems with SCE's meters and the subsequent remittance of sales revenue. It is anticipated that the meter reading difference will be resolved and the revenue for electricity sales will be more in line with the budget by the end of the LOW second quarter. The summary of expenses by treatment process shows a 150.98 percent increase in L the secondary treatment process from the same time period last year. This increase is a result of the emphasis placed on additional secondary treatment as the District progresses toward full secondary treatment of effluent. The summary of expenses by `W treatment process also shows a 251.10 percent increase in the utilities process from the same time period last year. This increase is a result of the extra power needed for the additional secondary treatment process. Section 1 - Page 2 i W Overview Comparison of First Quarter Cost per Million Gallon Results With Year-End Actuals (Budget) Last Five Years 841.63 875 823.82 800 730.32 725 661.25 650 563.09 544.26 575 512.78 523.53 500.75 500 473.76 425 999900 0000=01 1.02 020203 030304 1st Year 1st Year 1st Year 1st Year 1st Annual Qtr end Qtr end Qtr end Qtr end Qtr Budget As demonstrated in the preceding graph, the cost per million gallons at the end of the —. first quarter has been somewhat lower than at year-end for three of the last four years. The cost comparison for the first quarter of 2003-04 is consistent with this trend when compared with this year's budget. Section 2 - Page 1 provides a graphical comparison of each Department's actual contribution towards the gallonage charge through the first quarter of 2003-04 and as budgeted for 2003-04. Page 1 also provides a budget to actual graphical comparison of revenues and expenses by major category. — More detailed information is provided at the following locations: Section 2 - Page 2 provides for the divisional contributions to the gallonage charge through the first quarter for the current and two prior years; Section 2 — Page 3 provides a comparison of expenses by department through September 30 for the current and two prior years; Section 2 — Page 4 provides a summary of expenses by major category through September 30, 2003 and 2002; Section 2 — Page 5 provides a summary of joint operating revenues by line item through September 30, 2003 and 2002; Section 2 — pages 6 and 7 provide a summary of expenses by line item through September 30, 2003 and 2002; Section 2 — Page 8 provides a summary of expenses by treatment process through September 30, 2003 and 2002; Section 2 — Page 9 provides staffing trends over the last five years including total positions authorized, actual positions filled, and vacant positions. Section 1 - Page 3 2003-04 First Quarter Report Capital Outlay Review: _ $250.000.000 S200,000,000 S150,000,000 S 100,000.000 S50.000,000 low SO 9/30/03 Actual Projected 2003-04 2003-04 Capital Outlay Capital Outlay Capital Outlay Cash(low Budget S24,253,600 S202,672,500 $199,952,600 rr As depicted by the preceding chart, total Capital Outlay expenditures totaled $24,253,600 or 12.13 percent of the capital outlay cashflow budget for 2003-04 as of -- September 30, 2003. Costs are proportionately low through the first quarter as many projects are still in the design phase or have experienced various delays, but they are expected to approximate budget by year-end. Section 3 - Page 1 provides a graphical presentation on the dollar amount of capital expenditures incurred for each process category and a graphical presentation on the dollar amount of capital expenditures incurred for each major capital improvement funding source. For more detailed information, Section 3 — Pages 2 through 5 provide a summary of the construction requirements of each project for the current year and Section 3 — Pages 6 through 9 provide a summary of the construction requirements of each project over the project life. Budget Review by Revenue Areas: At September 30, 2003, revenues from all Revenue Areas totaled $291 ,524,900 million, or 60.53 percent of budget. Debt, the largest revenue source, was issued in August for $280 million and is at 100 percent of the budget. Other than the capital assessment received from IRWD, all other revenue sources are proportionately low through September 30. Tax Allocation/Subvention Revenue and r. Other User Fees are proportionately low through the first quarter because most of the property tax apportionment and user fee receipts that are collected by the County through the property tax roll are not distributed to the District until after the first quarter of each year. Connection fees, budgeted at $9.12 million, are at 15.78 percent of budget, or $1 .44 million, due to lower than anticipated building activity within the member cities. No sale of capacity rights has occurred as of September, but additional Section 1 - Page 4 Overview capacity will be sold to SAWPA during the second quarter. Interest earnings are proportionately low due to lower than anticipated interest rates. Expenses and outlays of all Revenue Areas totaled $61.33 million, or 18.79 percent of budget through the first quarter. The costs incurred related to capital improvement projects are proportionately low at $24.25 million or 12.13 percent of budget, as kEd previously explained in the Capital Outlay Section. COP retirement and interest expense, budgeted at $36.95 million, is proportionately high at 42.35 percent of budget, or $15.65 million, because the annual principal payments are paid during the first quarter of the fiscal year. Self-Insurance Budget Reviews: The District is self-insured for portions of workers' compensation, property damage, and general liability. Separate fund accounting is utilized for the recording of revenue and expenses incurred in managing these liability claims. The revenues to these funds represent individual Revenue Area contributions based on flows. Expenses to these funds include actual claims paid, claims administration, and excess loss policies. The Self-Insurance Fund revenues totaled $926,680 or 24.86 percent of the $3,727,000 budget at September 30, while total expenses were $670,050 or 22.71 percent of the $2,951,000 budget. Section 1 - Page 5 2003-04 First Quarter Report �6w This Page Intentionally Left Blank 6w ww ww ww ww 6w Section 1 - Page 6 61 Joint Operating Budget Review _ Cost per Million Gallons by Department Budget and Actual September 30,2003 $600 $550 - $500 $450 $400 — - $350 - - - --- - -- - $300 - - - $250 $200 $150 - $ 0 $0 Executive Finance Human Technical Engineering Operations& Information _ Management Resources Services Maintenance Technology ■Budget ■Actual .. Net Expenses by Major Category Budget and Actual (in thousands) September 30, 2003 $50,000 $45.000 _ $40,000 $35,000 $30,000 .r $25,000 $20,000 $15,000 > °b Cc -0 y C"a) 6 N R � cp U 0 N U C 0 to — N m cn — N 7 C W L C C .� ] O 0 �, y t0 C C 9 C U V O V 2 O �! Co = C W cE C cccc N c '� — °' a' a m Z N 2 a0 '� 'm aC D °' 08 0 > 4, .� a 'm o a x c a) m a— s o 3 a as 2 Ow orn `o � a, � ) ¢ [C it m a W U d ¢ m .a m t a V � O ■Budget ■Actual Section 2 - Page 1 2003-04 First Quarter o Re ft p Divisional Contributions to Gallonage Charge Ir For the Three Months Ended September 30, 2003-04 9130/01 9130/02 Annual 9130/03 Actual Actual Budget Actual Flow in Million Gallons 21,830.95 22,071.26 91,500.00 22,831.79 Flow in Million Gallons per Day 237.29 239.91 250.00 248.17 General Manager's Department V General Management Administration $ 15.39 $ 17.08 $ 13.84 $ 19.88 Administrative Services 9.19 9.04 9.60 8.64 Communications 5.70 6.56 11.64 6.33 Subtotal 30.28 32.68 35.08 34.85 Finance Department Finance Administration 16.13 12.98 16.84 11.68 i Accounting 18.12 17.20 20.16 18.33 W Purchasing&Warehouse 13.34 14.17 17.56 15.86 Subtotal 47.59 44.35 54.56 45.87 Human Resources Department Lr Human Resources Administration 12.99 5.49 7.13 8.85 Employee Development/Training - 2.22 7.69 5.23 Safety and Health 5.97 7.67 13.06 9.43 Human Resources - 5.32 6.09 6.41 v Subtotal 18.96 20.70 33.97 29.92 Technical Services Department Technical Services Administration 11.51 11.30 8.68 8.74 Environmental Compliance&Monitoring 44.19 32.12 42.08 40.77 60, Environmental Sciences Laboratory 42.07 46.60 60.50 48.42 Source Control 37.21 34.20 42.97 39.31 Subtotal 134.98 124.22 154.23 137.24 Engineering Department Engineering Administration 5.27 6.10 5.25 4.26 Planning 14.97 9.78 15.38 14.00 Project Management Office 20.68 12.41 17.52 13.80 L Engineering and Construction 35.14 50.88 56.98 53.59 Subtotal 76.06 79.17 95.13 85.65 Operations& Maintenance Department I Operations&Maintenance Administration 3.10 4.98 6.29 5.00 O&M Process Engineering 10.29 15.14 20.73 16.03 Plant No. 1 Operations 94.26 102.94 152.14 147.91 ` Plant No.2 Operations 128.66 153.19 209.90 203.84 fr.+ Mechanical Maintenance&Power Production 104.92 102.83 120.11 133.52 Instrumentation&Electrical Maintenance 60.56 66.12 74.47 68.12 Air Quality&Special Projects 14.32 15.98 18.30 16.51 Collection Facilities Maintenance 16.60 17.93 25.64 22.26 L Plant Facilities Maintenance 50.77 52.67 54.94 46.68 Subtotal 483.48 531.78 682.52 659.87 i Information Technology Department Information Technology Administration 6.55 7.22 3.34 2.89 Lr Customer&Network Support 16.62 19.54 37.79 27.11 Programing&Database 11.90 11.97 17.15 16.70 Process Ctrl Integration 11.11 14.25 17.96 14.27 iW Subtotal 46.18 52.98 7624 60.97 Total Joint Operating Expenses 837.53 885.88 1,131.73 1,054.37 Less: Cost Allocation (277.54) (192.48) (251.85) (201.36) i Net Joint Operating Requirements 559.99 693.40 879.88 853.01 I� Less: Revenues (36.46) (32.15) (38.25) (29.19) Net Joint Operating Expenses $ 523.53 $ 661.25 $ 841.63 $ 823.82 Section 2- Page 2 L Awd Joint Operating Budget Review Comparison of Expenses by Department For the Three Months Ended September 30, 2003-04 9130/01 9/30102 Year to Date Budget% Department and Division Actual Actual Budget 9130103 Realized General Manager's Department u.a General Management Administration $ 335,977 $ 377,003 $ 1,266,600 $ 453,992 35.84% Administrative Services 200,714 199,593 878,750 . 197,375 22.46% Communications 124,333 144,730 1,065,130 144,619 13.58% Subtotal 661,024 721,326 3,210,480 795,986 24.79% too Finance Department Finance Administration 352,118 286.513 1,541,200 266.656 17.30% Accounting 395,641 379,665 1,845,040 418,584 22.69% UVJ Purchasing&Warehouse 291,326 312,802 1,606,650 362,055 22.53% Subtotal 1,039,085 978,980 4,992,890 1,047,295 20.98% Human Resources Department Human Resources Administration 283,483 121,163 652,300 202,042 30.97% bn' Employee DevelopmentlTraining - 48,937 703,920 119,350 16.96% Safety and Health 130,356 169,367 1,194,930 215,415 18.03% Human Resources - 117,420 557,160 146,349 26.27% Subtotal 413,839 456,887 3,108,310 683.156 21.98% Technical Services Department Technical Services Administration 251,321 249,442 794,440 199,496 25.11% Environmental Compliance&Monitoring 964,674 708,835 3,850,660 930,760 24.17% Environmental Sciences Laboratory 918,452 1,028,453 5,535,740 1,105,518 19.97% Source Control 812,258 754.849 3,931,900 897,476 22.83% Subtotal 2,946,705 2,741,579 14,112.740 3,133,250 22.20% Engineering Department Engineering Administration 115,002 134,675 480,200 97.362 20.28% Planning 326,721 215,932 1,407,070 319,537 22.71% Project Management Office 451,188 273,840 1,602,690 315,161 19.66% Engineering and Construction 767,082 1,123,035 5,213,930 1,223,643 23.47% Subtotal 1,659,993 1,747,482 8,703,890 1,955,703 22.47% Operations&Maintenance Department Operations&Maintenance Administration 67,647 109,987 575,620 114,269 19.85% O&M Process Engineering 224,665 334,163 1,896,460 366,023 19.30% Plant No. 1 Operations 2,057,683 2,272,023 13,921,130 3,376,981 24.26% Plant No.2 Operations 2,808,953 3,380,836 19,204,630 4,653,737 24.23% Mechanical Maintenance&Power Production 2,290,425 2,269,675 10,989,900 3,048,528 27.74% Instrumentation&Electrical Maintenance 1,322,060 1,459,365 6,814,140 1,555,201 22.82% Air Quality&Special Projects 312,553 352,722 1,674,170 376,858 22.51% Regional Assets&Services 362,448 395,814 2,346,300 508,192 21.66% Uzi Facilities Maintenance 1,108,341 1,162,544 5,027,460 1,065,728 21.20% Subtotal 10,554,775 11,737,129 62,449,810 15,065,517 24.12% Information Technology Department i=j Information Technology Administration 142,937 159,256 305,400 66,096 21.64% Customer&Network Support 362,897 431,377 3,457.350 619,008 17.90% Programing&Database 259,885 264,139 1,569,240 381,310 24.30% Process Ctrl Integration 242,532 314,621 1,642,990 325,911 19.84% '" Subtotal 1,008,251 1,169,393 6,974,980 1,392.325 19.96% Total Joint Operating Expenses 18,283,672 19,552,776 103,553,100 24,073,232 23.25% Less: Cost Allocation (6,058,643) (4,248,469) (23,043,600) (4,597,551) 19.95% '� Net Joint Operating Requirements 12,225,029 15,304,307 80,509,500 19,475,681 24.19% Less: Revenues (795,958) (709,582) (3,500,000) (666,483) 19.04% Net Joint Operating Expenses $ 11,429,071 $ 14,594,725 $ 77,009,500 $ 18,809,198 24.42% Um Section 2- Page 3 2003-04 First Quarter Report Summary of Expenses by Major Category For the Three Months Ended September 30, 2003 Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2003-04 9130103 9130102 $ % Realized Budget Salary,Wages&Benefits $55,148,890 $12,683,498 $11,281,844 $ 1,401,654 12.42% 23.00% $42,465,392 Administrative Expenses 855,830 318,161 216,555 101,606 46.92% 37.18% 537,669 Printing&Publication 426,170 101,775 82,464 19,311 23.42% 23.88% 324,395 Training&Meetings 1,208,700 206,790 87,780 119,010 135.58% 17.11% 1,001,910 Operating Expenses 15,390,750 3,223,101 2,382,281 840,820 35.29% 20.94% 12,167,649 Contractual Services 12,759,250 3,081,004 2,044,899 1,036.105 50.67% 24.15% 9,678,246 Professional Services 2,771,120 544,479 392,145 152,334 38.85% 19.65% 2,226,641 Research&Monitoring 1,643.000 416,074 391,912 24,162 6.17% 25.32% 1,226,926 Repairs&Maintenance 6,672,220 1,791,111 1,265,109 526,002 41.58% 26.84% 4,881,109 Utilities 4,667,900 1,368,199 1,015,947 352,252 34.67% 29.31% 3,299,701 Other Materials, Supplies, and Services 2,009,270 339,040 391.840 (52,800) -13.47% 16.87% 1,670,230 Net Cost Allocation (23,043,600) (4,597,551) (4,248,469) (349,082) 8.22% 19.95% (18,446,049) NetJ. O. Requirements 80,509,500 19,475,681 15,304,307 4,171,374 27.26% 24.19% 61,033.819 Revenues (3,500,000) (666,483) (709,582) 43,099 -6.07% 19.04% (2,833,517) Net J. O. Expenses $77,009,500 $18,809,198 $14,594,725 $4,214,473 28.88% 24.42% $58,200,302 Gallonage Flow(MG) 91,500.00 22,831.79 22,071.26 760.53 3.45% Gallonage Flow(MGD) 250.00 248.17 239.91 8.26 3.44% Gallonage Flow($'s/MG) $841.63 $823.82 $661.25 $162.57 24.59% w r.+ W Section 2-Page 4 6W Joint Operating Budget Review Summary of Joint Operating Revenues by Line Item 9.0 For the Three Months Ended September 30,2003 t9w % Revenue Revenue Revenue Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) LW Description 2003-04 9/30/03 9/30/03 Budget 9130/02 $ % Inter District Sewer Use $ 1,350,000 $ 400,833 29.69% $ 949,167 $ 270,630 $ 130,203 48.11% Wastehauler 460,000 46,490 10.11% 413,510 137,102 (90,612) -66.09% o+ Sludge Disposal 850,000 137,400 16.16% 712,600 204,000 (66,600) -32.65% CNG Sales 300,000 55,489 18.50% 244,511 66,684 (11,195) -16.79% Other Sales - 3,059 N/A (3,059) 3,972 (913) -22.99% tud Rents&Leases 25,000 5,257 21.03% 19,743 4,790 467 9.75% General Non-Operating 125,000 11,501 9.20% 113,499 (10,488) 21,989 -209.66% Power Sales 390,000 6,454 1.65% 383,546 32,892 (26,438) -80.38% Total $3,500,000 $ 666,483 19.04% $2,833,517 $ 709,582 $ (43,099) -6.07% em Lod Section 2- Page 5 2003-04 First Quarter Report Summary of Expenses by Line Item LowFor the Three Months Ended September 30, 2003 Expense %Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2003-04 9130/03 9130103 Budget 9130102 $ % Salaries,Wages&Benefits Salaries&Wages $ 42.630,100 $ 9,998,919 23.46% $ 32,631,181 $ 9,218,174 $ 780,745 8.47% Employee Benefits: Retirement 5,512,000 1,142,003 20.72% 4,369,997 797,262 344,741 43.24% Group Insurances 5,797,300 1,262,994 21.79% 4,534,306 1,104,211 158,783 14.38% Tuition&Certification Reimb 101,190 10,739 10.61% 90,451 18,432 (7,693) -41.74% Uniform Rental 82,200 18,844 22.92% 63,356 18,767 77 0.41% Workers'Compensation 1,000,000 249,999 25.00% 750,001 124,998 125,001 100.00% Unemployment Insurance 26,100 - 0.00% 26,100 - - N/A Total Benefits 12,518,790 2.684,579 21.44% 9,834,211 2,063,670 620,909 30.09% Salaries,Wages&Benefits 55,148,890 12,683.498 23.00% 42,465,392 11,281,844 1,401,654 12.42% Ld Matl,Supply,&Services Administrative Expenses Memberships 236,160 172,185 72.91% 63,975 125,078 47,107 37.66% Office Exp-Supplies 146,980 28,504 19.39% 118,476 24,294 4.210 17.33% Office Expense-Other 90,100 18,784 20.85% 71,316 21,574 (2,790) -12.93% Small Computer Items 233,700 49,919 21.36% 183,781 36,816 13,103 35.59% Minor Furniture&Fixtures 148,890 48,769 32.76% 100,121 8,793 39,976 454.63% Printing&Publication Repro-In-House 299,600 82,315 27.47% 217,285 64,196 18,119 28.22% Printing-Outside 79,500 5,716 7.19% 73,784 9,052 (3,336) -36.85% Notices&Ads 41,900 11,530 27.52% 30,370 8,729 2,801 32.09% Photo Processing 5,170 2,214 42.82% 2,956 487 1,727 354.62% Training&Meetings Meetings 328,600 51,246 15.60% 277,354 43,841 7,405 16.89% Training 880,100 155,544 17.67% 724,556 43,939 111,605 254.00% I=d Operating Expenses Chemical Coagulants 2.569,000 504,671 19.64% 2,064,329 424,034 80,637 19.02% Sulfide Control 3,598,000 736,466 20.47% 2,861,534 582,695 153,771 26.39% Odor Control 1,959,700 291,767 14.89% 1,667,933 383,326 (91,559) -23.89% Disinfection 5,777,000 1,306,971 22.62% 4,470,029 717,248 589,723 82.22% Chemicals-Misc&Cogen 27,750 7,878 28.39% 19,872 2,432 5,446 223.93% Gasoline,Diesel&Oil 303,800 66,166 21.78% 237,634 59,452 6,714 11.29% ww Tools 134,800 35,970 26.68% 98,830 33,574 2,396 7.14% Safety equipment1tools 109,500 38,496 35.16% 71,004 - 38,496 NIA Solv,Paints&Jan.Supplies 48,000 21,375 44.53% 26,625 10,759 10,616 98.67% Lab Chemicals&Supplies 468,200 164,697 35.18% 303,503 93,279 71,418 76.56% 6w Other Operating Supplies 371,000 48,644 13.11% 322,356 75,482 (26,838) -35.56% Property Tax Fees 24,000 - 0.00% 24,000 - - N/A Contractual Services Solids Removal 9,600,000 2,518,307 26.23% 7,081,693 1,579,525 938,782 59.43% Other Waste Disposal 631,000 156,685 24.83% 474,315 92,840 63,845 68.77% Groundskeeping 220,000 42.223 19.19% 177,777 46,968 (4,745) -10.10% Janitorial 430,000 52,470 12.20% 377,530 65,050 (12,580) -19.34% Outside Lab Services 276,000 18,002 6.52% 257,998 24,797 (6,795) -27.40% Oxygen Plant Oper 340,000 105,117 30.92% 234,883 77,516 27,601 35.61% Temporary Services 720,500 107,910 14.98% 612,590 81,462 26,448 32.47% Security Services 250,000 49,362 19.74% 200,638 47,604 1,758 3.69% Other 291,750 30,928 10.60% 260,822 29,137 1,791 6.15% (Continued) Section 2-Page 6 Joint Operating Budget Review Summary of Expenses by Line Item For the Three Months Ended September 30,2003 Expense %Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2003-04 9130103 9130/03 Budget 9130/02 $ % Continued: �+ Professional Services Legal 457,000 137,539 30.10% 319,461 119,043 18,496 15.54% Audit&Accounting 75,000 39,500 52.67% 35,500 36,922 2,578 6.98% Engineering 280,400 53,334 19.02% 227,066 32,564 20,770 63.78% Enviro Scientific Consulting 195,000 - 0.00% 195,000 47,374 (47,374) -100.00% FIS Support 237,540 105,560 44.44% 131,980 7,740 97,820 1263.82% Software Prgm Consulting 155,000 7,181 4.63% 147,819 62,809 (55,628) -88.57% Energy Consulting 40,000 - 0.00% 40,000 - - NIA Advocacy Efforts 328,000 72,012 21.95% 255,988 10,000 62,012 620.12% Industrial Hygiene Services 50,000 - 0.00% 50,000 1,818 (1,818) -100.00% Labor Negotiation Services 43,790 13,063 29.83% 30,727 8,313 4,750 57.14% Uzi Other 909,390 116,290 12.79% 793,100 65,562 50,728 77.37% Research&Monitoring Environmental Monitoring 980,000 235,785 24.06% 744,215 162,992 72,793 44.66% L�d Air Quality Monitoring 120,000 - 0.00% 120,000 - - NIA Research 543,000 180,289 33.20% 362,711 228,920 (48,631) -21.24% Repairs&Maintenance tw, Materials&Services 5,214,080 1,505.518 28.89% 3,707,562 1,092,872 413,646 37.85% Svc.Mtc.Agreements 1,458,140 284,593 19.52% 1,173,547 172,237 112,356 65.23% Utilities and Telephone 198,600 46,217 23.27% 152,383 35,549 10,668 30.01% Diesel For Generators 12,000 6,592 54.93% 5,408 2,815 3,777 134.17% Natural Gas 1,889,100 443,529 23.48% 1,445,571 364,003 79,526 21.85% Power 1,356,200 618,661 45.62% 737,539 342,349 276,312 80.71% Water 1,212,000 253,200 20.89% 958,800 271,231 (18,031) -6.65% Other Operating Supplies Outside Equip Rental 50,700 17,607 34.73% 33,093 8,328 9,279 111.42% Insurance 1,250,000 202,572 16.21% 1,047,428 229,456 (26,884) -11.72% Freight 67,600 22,448 33.21% 45,152 15,830 6,618 41.81% Misc.Operating Expense 364,100 19,587 5.38% 344,513 49,167 (29,580) -60.16% d Regulatory Operating Fees 205,170 71,188 34.70% 133,982 79,397 (8,209) -10.34% General Manager Contingency - - N/A - - - WA Prior year reappropriation - - N/A - - - WA Other Non-Oper Expense 71,700 5,638 7.86% 66.062 9,662 (4,024) -41.65% Mads,Supp,&Serv. 48,404,210 11,389,734 23.53% 37,014,476 8,270,932 3,118,802 37.71% Total Expenditures 103,553,100 24,073,232 23.25% 79,479,868 19,552,776 4,520,456 23.12% Less:Cost Allocation (23,043,600) (4,597,551) 19.95% (18,446,049) (4,248,469) (349,082) 8.22% NetJ.O.Requirements 80.509,500 19,475,681 24.19% 61,033,819 15,304,307 4,171,374 27.26% Less: Revenues (3,500,000) (666.483) 19.04% (2,833,517) (709,582) 43,099 -6.07% Net J.O.Expenses $ 77,009.500 $ 18,809,198 24.42% $ 58,200.302 $ 14,594,725 $ 4,214,473 28.88% Section 2-Page 7 2003-04 First Quarter Report Summary of Expenses by Treatment Process wow For the Three Months Ended September 30,2003 Increase Increase Low Actual Actual (Decrease) (Decrease) 9/30103 9130/02 $ % Treatment Process: Preliminary Treatment $ 1,224,904 $ 1,264,068 $ (39,164) -3.10% Primary Treatment 1,220,495 1,374,303 (153,808) -11.19% Secondary Treatment 2,119,011 844,284 1,274,727 150.98% Cryogenic Plant(Plant 2) 136,571 153,436 (16,865) -10.99% Effluent Disposal 225,360 125,202 100,158 80.00% 6w Solids Handling 7,582,425 6,107,982 1,474,443 24.14% Cogeneration 1,984,630 1,911,876 72,754 3.81% Utilities 1,320,774 376,179 944,595 251.10% Electrical Distribution 175,379 162,454 12,925 7.96% Miscellaneous Buildings 1,616,044 1,128,144 487,900 43.25% 6' Air Quality 396,010 438,070 (42,060) -9.60% imw Laboratory 1,474,078 1,418,309 55,769 3.93% Net Joint Operating Requirements 19,475,681 15,304,307 4,171,374 27.26% kaw Less: Revenues (666,483) (709,582) 43,099 -6.07% Net Joint Operating Expenses $ 18,809,198 $ 14,594,725 $ 4,214,473 28.88% a-, LOW Section 2 - Page 8 MW Joint Operating Budget Review ti Staffing Trends Full Time Equivalents September 30, 2003 625 596 574 567 ~ 519 525 510 rr 425 6/30/2000 6/30/2001 6/30/2002 6/30/2003 9/30/2003 ■Actual M Vacant At September 30, 2003, the total head count was 555 employees, or a full time equivalency of 545. w Section 2 - Page 9 I1 2003-04 First Quarter Report i L L This Page Intentionally Left Blank bog 6w L L L L 6w u Section 2- Page 10 L CI P Review Capital Improvement Program By Type and Funding Source For the Three Months Ended September 30, 2003 Miscellaneous Support Utility Protects Systems Prior Year 316 2°o Treatment Projects 12% Collections So:ids Handling Facilities �. 8 Digestion-1*6 23% Headworks-5°16 Odor Control Projects-1% Equipment 21. Primary Water Management Treatment Protects-5% 30*6 We Plant Automa:.on 3% Ocean Outlaw Systems S. 9% Process Secondary Related Treatment .r Special 3% Projects-1% Total Capital Improvement Expenditure - S24,253,596 S7.337,035 Replacement/ Rehabilitation 31 S5.450.889 mproved Treatment 22% $1,526.668 Support 5% $9.939.004 Additional Capacity 41% Total Capital Improvement Expenditure - S24,253,596 Section 3 - Page 1 2003-04 First Quarter Report Summary of Capital Improvement Construction Requirements -Current Year For the Three Months Ended September 30, 2003 2003-04 2003-04 2003-04 Cashflow Actual at Projected Budget 9/30/03 Outlay Collection System Improvement Projects Collections Greenville Sullivan/Raitt STreet Manhole Rehab S S S Santa Ana Trunk Sewer Rehab. Lower Main-Broadway MH Rehabilitation - Continuous Feed Chemical Treatment Facility 312,000 25,287 312,000 Trunk Sewer Mapping Project 900,000 16,127 900.000 Carbon Cnyn Sewer and Pump Stn.Abandonment 1,983,000 50,324 1,983,000 Santa Ana River Interceptor Relief Sewer - - - Santa Ana River Interceptor Realignment and Prot. 4,183,000 (343,700) 4,183,000 y Abandonment of the Existing SARI in SA River - - Abandonment of Yorba Linda Pump Station Taft Branch Improvements Atwood Subtrunk Improvements �y Lower Santa Ana River Interceptor Improvements Euclid Relief Improvements-Reach"A" i Euclid Relief Improvements-Reach"B" Santa Ana River Relief Sewer,Reach B Newhope-Placentia&Cypress Trunk Replacements Upper&Lower Newhope-Placentia MH Rehabilitation SARI and South Anaheim Interceptor MH Rehabilitaiton Rehabilitation of the Magnolia Trunk Sewer Trask Branch of the Hoover-Western Subtrunk Rehabilitation of the Westside Pump Station 236,000 10,376 236,000 Westside Relief Interceptor/Los Alamitos MH Rehab - - Rehabilitaiton of the Seal Beach and Edinger PS - - - Lining of 36"NPTB FM(Junc Box to 2nd Angle PI.) 517,000 472,772 517,000 Replacement of Back Bay Trunk Sewer 357,000 (48,397) 357,000 L Balboa Trunk Sewer Rehabilitaiton - - - Replacement of the Biller Point Pump Station 1,515,000 23,139 1.515,000 Replacement of the Rocky Point Pump Station 1,000,000 89.515 1,000,000 Rehabilitation of the 141h Street Pump Station 190,000 12,106 190,000 Rehabilitation of the"A"Street Pump Station 281,000 59,503 281,000 Rehabilitation of the Bay Bridge Pump Station - 2,676 2.680 Rehabilitation of the Crystal Cove Pump Station 248,000 5.667 248,000 PCH FM Bitter Pt PS to Coast Trunk @ Bhurst&PCH 260,000 47,928 260,000 L.{ Big Canyon Trunk Sewer Rehab&Replacement 804,000 - 804.000 Abandonment of AB Trunk,Watson and Cal.Sewers 55,000 3,584 55,000 Abandonment of Airbase Trunk Sewer-California St 948,000 1,379 948,000 Abandonment of Airbase Trunk(Watson St)&College 3.110,000 - 3.110,000 M'I Covey Lane Pump Station Abandonment 60,000 30,383 60,000 Sunflower interceptor Manhole Rehab 447,000 391 447,000 Gisler Redhill Trunk Sewer Relocation-Phase 1 145,000 475 145,000 Gisler-Redhill System Improvements,Reach B 337,000 8,172 337,000 Replacement of the College Ave Pump Station 212,000 21,846 212,000 Rehabilitaiton of the MacArthur Pump Station 84,000 7.289 84,000 Tustin West/Lemon Heights Trunk Improvements 48,000 - 48,000 Lower Gisler-Redhill Trunk Relocation and MH Rehab - - Gisler Redhill Trunk Improv&Orange Trunk Improv 2,163,000 2,163,000 Upper Gisler-Redhill MH Rehabilitaiton&Campus Dr - _ - Modifications to the Main Street Pump Station(28%) 236,040 149.346 236,040 L Newland Street Intereptor Sewer Protection 112.000 285 112,000 Warner Avenue Relief Sewer 2,222,000 1,351.281 2.222,000 (Continued) Section 3 - Page 2 am CIP Review Wo Summary of Capital Improvement Construction Requirements-Current Year For the Three Months Ended September 30, 2003 2003-04 2003-04 2003-04 bmd Cashflow Actual at Projected Budget 9/30/03 Outlay (Collections continued) Edinger/Bosla Chica Trunk Improvements - - - 01" Coast Trunk Sewer Rehabilitaiton 56,000 11,837 56,000 Facilities Engineering Projects-Collections 317,000 261,064 317,000 Bushard Trunk Sewer Rehabilitation 11.999,000 2,479,147 11,999.000 MW Pump Station P&IDs and Equipment Tagging 720,000 - 720.000 Additional Charges to CIP Closed at 6/30/03 - 270.818 270,820 Subtotal-Collections 36,057,040 5,020,620 36,330,540 "W+ Revenue Area 14 Modifications to the Main Street Pump Station(72%) 606,960 384,033 606,960 Additional Charges to CIP Closed at 6/30103 - 91 100 Subtotal-Revenue Area 14 606,960 384,124 607,060 00 Total Collection System Improvement Projects 36.664,000 5,404,744 36,937,600 Treatment&Disposal Projects MW Collections Facilities Rehabilitate District Siphons By Adding Air Jumper 106,000 - 106,000 Replacement of the Ellis Ave Pump Station 1,999,000 111.034 1.999,000 Subtotal-Collections Facilities 2,105,000 111,034 2,105,000 ow Headworks PLC Programming and Integration 393,000 4,330 393,000 Sunflower Drive Replacement 87,000 7,997 87,000 Headworks Rehabilitation/Refurbishment - - - Headworks Improvements at Plant No.2 4.561,000 1,108,018 4,561,000 Subtotal-Headworks 5.041.000 1,120.345 5,041,000 Primary Treatment Pd.Clarifiers 16-31&Related Facilities 14,660,000 7,244,590 14,660,000 Primary Treatment Rehab/Refurb 53,000 6,727 53,000 iru Circular Clarifier Drive Replacement/Upgrade 1,142,000 220,986 1.142,000 Sludge Density Meter Upgrades 780,000 373 780.000 Subtotal-Primary Treatment 16,635,000 7,472,676 16,635,000 Secondary Treatment New Secondary Treatment System at Plant No.1 451,000 75 451,000 Trickling Filter Rehabilitation and New Clarifiers 12,000,000 570,506 12,000,000 a� Activated Sludge Plant Rehabilitation 350,000 25,516 350.000 Sec Treat Monitoring&Cntd Sys Upgrad 5,560,000 44,808 5,560,000 Secondary Plant Rehabilitation 243,000 63,784 243,000 New Trickling Filters 100,000 - 100,000 two Oxygen Plant Replacement/Rehabilitation Assess 40,000 5.437 40,000 Activated Sludge Aeration Basin Selector Study 788,000 12,085 788,000 Computer Modeling of Activated Sludge System 120.000 120,000 Subtotal-Secondary Treatment 19,652,000 722,211 19,652.000 Solids Handling&Digestion Sludge Digester Rehabilitation at Plant 1 519,000 - 519,000 Sludge Dewatering and Odor control at Plant 1 317,000 317,000 Ammonia Side Stream Treatment 557,000 - - Digesters,Centrifuge/Press&Cake Storage Hopper - - - Solids Storage and Truck Loading Facility 1,077,000 52,952 1,077,000 WW (Continued) Section 3- Page 3 MW 2003-04 First Quarter Report low Summary of Capital Improvement Construction Requirements -Current Year For the Three Months Ended September 30, 2003 2003-04 2003-04 2003-04 Cashflow Actual at Projected WW Budget 9130/03 Outlay (Solids Handling&Digestion continued) Digesters and Sludge Cake Hoppers at Plant 2 86,000 - 86,000 Digester Rehabilitation at Plant 2 264,000 - 264,000 _ Sludge Dewatering and Odor Control at Plant 2 - - - High Rate Digester Mix Pumps Mech.Seals 32,000 35,066 35,070 t+� Sludge Grinder Replacement 20,000 - 20,000 Tule Ranch MaintlBiosolids Management Needs 100,000 - 100,000 Subtotal-Solids Handling&Digestion 2,972,000 88,028 2,418,070 Ocean Outfall Systems Peak Flow Management 1,500,000 83,989 1,500.000 - Effluent Pumping Station Annex 8,001,000 154,280 8,001,000 Short Term Outfall Bacteria Reduction 3,651,000 1,993,691 3,651,000 NPDES Permit Renewal 355,000 20,557 355,000 Subtotal-Ocean Outfall Systems 13,507,000 2,252.517 13,507,000 Utility Systems Electrical Power System Single-line Diagrams 911,000 - 911,000 Standby Power and Reliability Modifications 5,045,000 272,915 5,045,000 Cable Tray Improvements at Plants 1 &2 1,116,000 7,603 1.116,000 Central Generation Automation 2,002,000 44,424 2,002.000 Area Classification STudies Implementation Plan 5,062,000 66,702 5,062,000 Plant 1 66kV Substation 102,000 77 102.000 Gas Compressor Addition at Plant No.2 193,000 28,127 193,000 Utilities Rehabilitation and Refurbishment 1,478,000 4,663 1,478,000 Fuel Station Replacement at Plant No.2 433,000 3,628 433,000 Electrical Equipment Refurbishment and Protection 197,000 5,543 197,000 6ri Rehabilitation of Low Pressure Gas Holder 422,000 - 422,000 Indoor/Outdoor Lighting Study 127,000 1,353 127,000 Plant 1 Plant Water VFD Replacement 107,000 4,202 107,000 Subtotal-Utility Systems 17,195,000 439,237 17,195,000 Low Odor Control Related Projects Facilities Modifications for Odor Control 1,500,000 33,664 1,500,000 Rehabilitation of Odor Control Facilities 711,000 88,795 711,000 Subtotal-Odor Control Related Projects 2.211,000 122,459 2,211,000 Plant Automation&Computerization Power Monitoring and Control Systems 169,000 - 169,000 Plant Reinvention/Automation Project 903,000 84,140 903,000 - Document Management - 8,128 8,130 Data Integration 569,000 52,752 569,000 cW Strategic Information Architecture(SIA) 50,000 - 50,000 IntemeVlntranet Development 235,000 3,683 235.000 CMMS System Replacement 250,000 - 250,000 Source Control Programming 600,000 103,208 600,000 Geographic Information System 423,000 26,643 423,000 SCADA System Replacement Study 300,000 - 300,000 SCADA Graphics Tagging Update 255,000 - 255,000 Financial Information System Upgrade 880,000 419,648 880,000 Information Technology Disaster Recovery 304,000 - 304,000 Network Equipment Upgrade 604,000 10,229 604,000 Subtotal Plant Automation&Computerization 5,542,000 708,431 5,550,130 Section 3-Page 4 wo CIP Review WV Summary of Capital Improvement Construction Requirements -Current Year For the Three Months Ended September 30, 2003 2003-04 2003-04 2003-04 b11 Cashflow Actual at Projected Budget 9/30103 Outlay Process Related Special Projects Standard Specifications Revisions and Updates 14,000 39 14,000 ei Effluent Pathogen REduction Alternatives Plan 930,000 - 930,000 Plant O&M Manual and SOP Project-Phase 1 150,000 27,770 150,000 Hazardous Energy Control Procedures 295,000 46,375 296,000 ,may Corrosion Management 3,761,000 3,087 3,761,000 Special Projects: Anoxic Gas Flotation(AGF) 268,000 34,931 268,000 Special Projects: Anaerobic Baffled Reactor(ABR) 469,000 4,898 469,000 Special Projects: Primary Effluent Filtration 110,000 196 110,000 We Special Projects: Oxygen Ionization/Odor Control 210,000 210,000 Special Projects: Microfiltration/Primary Effluent 595,000 100,897 595,000 Special Projects: Dewatering Options Comparison 99,000 - 99,000 do Special Projects: Biotrickling Filter(BTF) 48,000 36,388 48,000 Special Projects: Ammonia Reduction Options 277,000 277.000 Subtotal-Process Related Special Projects 7,227.000 254,581 7,227.000 Miscellaneous&Support Projects Facilities Engineering Projects-Joint 1,145,000 14,124 1,145,000 Facilities Engineering Projects-Plant 1 1,145,000 21,311 1,145,000 Facilities Engineering Projects-Plant 2 1,145,000 91,726 1,145,000 Interim Fac Record&Eng Data Syst Maint Services 234,000 - 234,000 Supplemental Full Secondary Treatment CEQA Doc 153,000 - 153,000 Supplement No.1 to the 1999 Strategic Plan EIR 567,000 25,794 567,000 Long Range Biosolids Management Plan 2,669,000 22,120 2,669,000 Strategic Plan Update 1,420,000 87,958 1,420,000 Modifications to Existing Mech Systems 150,000 - 150,000 Building Rehabilitation/Refurbishment 929,000 - 929,000 a., Space Allocation and Interior Renovation 2,615,000 21,687 2,615,000 Laboratory Rehabilitation 169,000 1,521 169,000 Tenant Improvements to Rebuild Shop 89,000 29,296 89,000 Engineering Trailer Complex 166,000 141.454 166,000 Support Building Power System Modifications 205,000 - 205,000 Security System Improvements 569,000 10,581 569,000 Small Cap.Equip.Replacement Project 500,000 149,369 500,000 Asset Management Program 4,226,000 - 4,226,000 a� Warehouse Reinvention Project 190,000 3,418 190,000 Plume Modeling 128,000 30,000 128,000 Plant 2 Maintenance Building Modifications 300.000 300,000 Subtotal-Miscellaneous&Support Projects 18,714,000 650,359 18,714,000 Water Management Projects Groundwater Replenishment System 43,125,000 1,134,571 43,125,000 ow Water Conservation 506,000 3,484 506,000 Co-op Projects,Inflow/lnfilt.Reduction 4,000,000 - 4,000,000 Long Term Permanent Monitoring Program 713.000 153,338 713,000 Subtotal-Water Management Projects 48,344,000 1,291,393 48.344.000 ISO Additional Charges to CIP Completed at 6130103 - 2,992,059 2,992,060 Total Treatment and Disposal Projects 159,145,000 18,225,330 161,691,260 °" Capital Equipment Purchases 4,143,600 623.522 4,143,600 Total Collections and Treatment&Disposal u0 Projects and Capital Equipment Purchases $199,952.600 $ 24.253,596 $202.672.460 Section 3- Page 5 no 2003-04 First Quarter Report LTAW Summary of Capital Improvement Construction Requirements -Project Life For the Three Months Ended September 30, 2003 Current Total Approved June 30,2003 Year Projected Remaining w Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2004 Budget Collection System Improvement Projects Collections W Greenville SullivanlRaitt STreet Manhole Rehab $ 3,269,000 $ - $ - $ - $ 3,269,000 Santa Ana Trunk Sewer Rehab. 14,638,000 403,673 - 403,673 14,234,327 Lower Main-Broadway MH Rehabilitation 1.467,000 - - 1,467,000 Continuous Feed Chemical Treatment Facility 451,000 40 312,000 312,040 138,960 Trunk Sewer Mapping Project 2,013,000 1,620.747 900,000 2.520,747 (507,747) Carbon Cnyn Sewer and Pump Stn.Abandonment 3,467,000 356.375 1,983,000 2.339,375 1.127,625 Santa Ana River Interceptor Relief Sewer 17,272,000 - - - 17,272,000 Santa Ana River Interceptor Realignment and Prot. 63,620,000 2,334,141 4,183,000 '6,517,141 57,102,859 Abandonment of the Existing SARI in SA River 8,456,000 151 - 151 8,455,849 - Abandonment of Yorba Linda Pump Station 955,000 - - - 955,000 Taft Branch Improvements 3,508,000 9,386 - 9,386 3,498,614 Atwood Subtrunk Improvements 3,187,000 110,352 - 110,352 3,076,648 Lower Santa Ana River Interceptor Improvements 35,012,000 - - 35,012,000 Euclid Relief Improvements-Reach"A" 20,856,000 13,510 13,510 20,842,490 Euclid Relief Improvements-Reach"B" 10,319,000 - - 10,319,000 `ow Santa Ana River Relief Sewer,Reach B 32,702,000 - 32,702,000 _ Newhope-Placentia&Cypress Trunk Replacements 28,785,000 - - 28,785,000 Upper&Lower Newhope-Placentia MH Rehabilitation 4,351,000 - - 4,351,000 w SARI and South Anaheim Interceptor MH Rehabilitaiton 3,087,000 - - - 3,087,000 Rehabilitation of the Magnolia Trunk Sewer 48,868.000 - - - 48,868,000 Trask Branch of the Hoover-Westem Subtrunk 1,410,000 - - - 1,410,000 Rehabilitation of the Westside Pump Station 2,991,000 199,375 236,000 435,375 2,555,625 Westside Relief Interceptor/Los Alamitos MH Rehab 17,136,000 - - - 17,136,000 Rehabilitaiton of the Seal Beach and Edinger PS 8,574,000 - - - 8,574,000 Lining of 36"NPTB FM(Junc Box to 2nd Angle Pt.) 1,996,000 1,348,522 517,000 1,865,522 130,478 Replacement of Back Bay Trunk Sewer 7,189,000 6,781,547 357,000 7,138,547 50,453 Balboa Trunk Sewer Rehabilitaiton 5.759,000 - - - 5,759,000 Replacement of the Bitter Point Pump Station 8.159,000 402,722 1,515,000 1,917,722 6,241,278 Replacement of the Rocky Point Pump Station 9,362,000 190,663 1,000,000 1,190,663 8,171,337 Rehabilitation of the 14th Street Pump Station 4,617.000 900,058 190,000 1,090,058 3,526,942 Rehabilitation of the"A"Street Pump Station 5,013,000 1,279,892 281,000 1,560,892 3,452,108 Rehabilitation of the Bay Bridge Pump Station 2,612,000 146,204 2,680 148,884 2,463,116 Rehabilitation of the Crystal Cove Pump Station 1,512,000 184,169 248,000 432,169 1,079,831 6W PCH FM Bitter Pt PS to Coast Trunk @ Bhurst&PCH 13,927,000 47,196 260,000 307,196 13,619,804 Big Canyon Trunk Sewer Rehab&Replacement 2,534,000 - 804,000 804,000 1,730,000 Abandonment of AB Trunk,Watson and Cal.Sewers 351,000 303,603 55,000 358,603 (7,603) Abandonment of Airbase Trunk Sewer-California St 975,000 4,885 948,000 952.885 22,115 Abandonment of Airbase Trunk(Watson St)&College 3,276,000 - 3,110,000 3,110,000 166,000 Covey Lane Pump Station Abandonment 153,000 156,690 60,000 216,690 (63,690) Sunflower interceptor Manhole Rehab 3,991,000 566,134 447,000 1,013,134 2,977,866 Gisler Redhill Trunk Sewer Relocation-Phase 1 936,000 - 145,000 145,000 791,000 Gisler-Redhill System Improvements,Reach B 6,893,000 189,220 337,000 526,220 6,366,780 Replacement of the College Ave Pump Station 6,021,000 7,023 212,000 219,023 5,801,977 Rehabilitaiton of the MacArthur Pump Station 2,355,000 25,691 84,000 109.691 2,245,309 Tustin West/Lemon Heights Trunk Improvements 5,926,000 - 48,000 48,000 5,878,000 Lower Gisler-Redhill Trunk Relocation and MH Rehab 6,615,000 - - - 6,615,000 Gisler Redhill Trunk Improv&Orange Trunk Improv 23,661,000 - 2,163,000 2,163,000 21,398,000 Upper Gisler-Redhill MH Rehabilitaiton&Campus Dr 2,121,000 - - - 2,121,000 W Modifications to the Main Street Pump Station(28%) 271,320 18,455 236,040 254,495 16,825 Newland Street Inlereptor Sewer Protection 127,000 38,541 112,000 150,541 (23,541) Warner Avenue Relief Sewer 7,480,000 692,136 2,222,000 2,914,136 4,565.864 Loaf (Continued) Section 3-Page 6 CIP Review Summary of Capital Improvement Construction Requirements -Project Life For the Three Months Ended September 30, 2003 Current Total u.d Approved June 30,2003 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2004 Budget (Collections continued) Edinger/Bosla Chica Trunk Improvements 2,126,000 - - - 2,126,000 Coast Trunk Sewer Rehabilitaiion 16,635,000 8,411 56,000 64,411 16,570,589 Facilities Engineering Projects-Collections 5,400,000 190,468 317,000 507,468 4,892,532 ry Bushard Trunk Sewer Rehabilitation 39,393,000 9,085,557 11,999,000 21,084,557 18,308,443 Pump Station P&IDs and Equipment Tagging 720.000 - 720,000 720,000 - Additional Charges to CIP Closed at 6/30/03 69,541,725 8,725,210 270.820 8,996,030 60,545,695 Subtotal-Collections 603,942,045 36,340,747 36,330,540 72,671,287 531,270,758 rrci Revenue Area 14 Modifications to the Main Street Pump Station(72%) 697,680 47,455 606,960 654,415 43,265 Additional Charges to CIP Closed at 6130/03 73,121 100 73,221 (73,221) �+ Subtotal-Revenue Area 14 697,680 120,576 607,060 727,636 (29,956) Total Collection System Improvement Projects 604,639,725 36,461,323 36,937,600 73,398,923 531,240,802 Treatment&Disposal Protects Collections Facilities Rehabilitate District Siphons By Adding Air Jumper 5.731,000 - 106,000 106,000 5,625,000 Replacement of the Ellis Ave Pump Station 33,837,000 678,122 1,999,000 2,677,122 31,159,878 Subtotal-Collection Facilities 39,568,000 678,122 2,105,000 2,783.122 36,784.878 Headworks PLC Programming and Integration 515,000 44,921 393,000 437,921 77,079 Sunflower Drive Replacement 815,000 660,034 87,000 747,034 67,966 Headworks Rehabilitation/Refurbishment 37,510,000 69.746 - 69,746 37,440,254 Headworks Improvements at Plant No.2 226.130,000 9,149.698 4,561,000 13,710,698 212,419,302 Subtotal-Headworks 264,970,000 9.924,399 5.041,000 14,955,399 250,004,601 Primary Treatment PH.Clarifiers 16-31 &Related Facilities 88,561,000 43,987,660 14,660,000 58,647,660 29,913,340 Primary Treatment Rehab/Refurb 55,093,000 24,625 53,000 77,625 65,015,375 Circular Clarifier Drive Replacement/Upgrade 3,467,000 304,870 1,142,000 1,446,870 2,020,130 Sludge Density Meter Upgrades 800,000 21,126 780,000 801,126 (1,126) Subtotal-Primary Treatment 147,921,000 44,338,281 16,635,000 60,973,281 86,947,719 w Secondary Treatment New Secondary Treatment System at Plant No.1 251,100.000 - 451,000 451,000 250,649,000 Trickling Filter Rehabilitation and New Clarifiers 46,210,000 4,375,107 12,000,000 16,375,107 29,834,893 Activated Sludge Plant Rehabilitation 23,870,000 15,716 350,000 365,716 23,504,284 Sec Treat Monitoring&Cntrl Sys Upgrad 8,703,000 569,267 5,560,000 6,129,267 2,573,733 Secondary Plant Rehabilitation 20t474,000 112,812 243,000 355,812 20,118,188 New Trickling Filters 128,727,000 - 100,000 100,000 128,627,000 no Oxygen Plant ReplacementlRehabilitation Assess 2,145,000 109,901 40,000 149,901 1,995,099 Activated Sludge Aeration Basin Selector Study 945,000 97.459 788,000 885,459 59,541 Computer Modeling of Activated Sludge System 120,000 - 120.000 120,000 - Subtotal-Secondary Treatment 482,294,000 5.280,262 19.652,000 24,932,262 457.361,738 Solids Handling&Digestion Sludge Digester Rehabilitation at Plant 1 30,223,000 - 519,000 519,000 29,704.000 Sludge Dewatering and Odor control at Plant 1 62.905,000 317,000 317,000 62,588,000 ua Ammonia Side Stream Treatment 18,600,000 - - - 18,600,000 Digesters,Centrifuge/Press&Cake Storage Hopper 61,605,000 - - - 61,605,000 Solids Storage and Truck Loading Facility 14,582.000 13,561,758 1,077,000 14,638,758 (56,758) Wo (Continued) Section 3- Page 7 2003-04 First Quarter Report Summary of Capital Improvement Construction Requirements -Project Life For the Three Months Ended September 30,2003 Current Total Approved June 30,2003 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2004 Budget (Solids Handling&Digestion continued) Digesters and Sludge Cake Hoppers at Plant 2 42,325,000 - 86,000 86.000 42.239,000 Digester Rehabilitation at Plant 2 25,621,000 - 264,000 '264.000 25,357,000 Sludge Dewatering and Odor Control at Plant 2 79,082,000 - - - 79.082,000 ~ High Rate Digester Mix Pumps Mech.Seals 517,000 507,904 35,070 542,974 (25,914) W Sludge Grinder Replacement 224,000 - 20,000 20,000 204,000 Tule Ranch Maint/Biosolids Management Needs 200,000 100,000 100,000 100,000 Subtotal-Solids Handling&Digestion 335,884,000 14,069,662 2,418,070 16,487,732 319,396,268 Ocean Outfall Systems Peak Flaw Management 11,257,000 1,026,649 1,500,000 2,526,649 8,730,351 - Effluent Pumping Station Annex 50,757,000 4,256,790 8,001,000 12,257,790 38,499,210 Short Tenn Outfall Bacteria Reduction 7,578,000 4,760,267 3,651,000 8,411,267 (833,267) tali NPDES Permit Renewal 1,512,000 991,811 355,000 1.346,811 165,189 Subtotal-Ocean Outfall Systems 71,104,000 11,035,517 13.507.000 24,542,517 46,561,483 Utility Systems 6=' Electrical Power System Single-line Diagrams 3,368,000 286 911,000 911,286 2,456,714 Standby Power and Reliability Modifications 17,643,000 13,047,161 5.045,000 18,092,161 (449,161) Cable Tray Improvements at Plants 1 &2 29,526,000 1,099,287 1,116,000 2.215,287 27,310,713 uni Central Generation Automation 8,038,000 627,390 2,002,000 2,629,390 5,408,610 Area Classification STudies Implementation Plan 21,283,000 338 5,062,000 5,062,338 16,220,662 Plant 1 66kV Substation 4,645,000 - 102,000 102,000 4,543.000 Gas Compressor Addition at Plant No.2 4,326,000 92,792 193,000 285,792 4,040,208 Utilities Rehabilitation and Refurbishment 4,929,000 818,037 1,478,000 2,296,037 2,632,963 Fuel Station Replacement at Plant No.2 3,231,000 4,411 433,000 437,411 2,793,589 Electrical Equipment Refurbishment and Protection 3,312,000 458 197,000 197,458 3,114,542 Rehabilitation of Low Pressure Gas Holder 422,000 - 422,000 422,000 - 60i Indoor/Outdoor Lighting Study 132,000 - 127,000 127,000 5,000 Plant 1 Plant Water VFD Replacement 2,334,000 107,000 107,000 2,227,000 Subtotal-Utility Systems 103,189,000 15,690,160 17,195,000 32.885,160 70,303,840 W Odor Control Related Projects Facilities Modifications for Odor Control 4,127,000 644,339 1,500,000 2,144,339 1,982,661 Rehabilitation of Odor Control Facilities 33,224,000 231,664 711,000 942,664 32,281,336 Subtotal-Odor Control Related Projects 37,351,000 876,003 2,211,000 3,087,003 34,263,997 Plant Automation&Computerization Power Monitoring and Control Systems 3,790,000 24,177 169,000 193,177 3,596,823 taw Plant Reinvention/Automation Project 21,915,000 13,536,780 903,000 14,439,780 7,475,220 Document Management 864,000 668,668 8,130 676,798 187,202 Data Integration 4,334,000 3,193,482 569,000 3,762,482 571,518 Strategic Information Architecture(SIA) 724.000 440,513 50,000 490,513 233,487 IntemeUlntranet Development 650,000 279,653 235,000 514,653 135,347 CMMS System Replacement 3,789,000 - 250,000 250,000 3,539,000 Source Control Programming 2,956,000 1,357,105 600,000 1,957,105 998,895 W Geographic Information System 4,157,000 408,397 423,000 831,397 3,325,603 SCADA System Replacement Study 300,000 - 300,000 300,000 - -- SCADA Graphics Tagging Update 425,000 49,169 255,000 304,169 120,831 Financial Information System Upgrade 3,213,000 1,591,361 880,000 2,471,361 741,639 Information Technology Disaster Recovery 332,000 34,076 304,000 338,075 (6,075) Network Equipment Upgrade 2.901,000 1.145,146 604,000 1,749,146 1,151,854 Subtotal-Plant Automation&Computerization 50,350,000 22,728,526 5,550,130 28,278,656 22.071,344 Section 3-Page 8 aw CIP Review .a Summary of Capital Improvement Construction Requirements - Project Life For the Three Months Ended September 30, 2003 Current Total 00 Approved June 30,2003 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2004 Budget Process Related Special Projects 1d Standard Specifications Revisions and Updates 657,000 478,837 14,000 492,837 164,163 Effluent Pathogen REduction Alternatives Plan 1,549,000 - 930,000 930,000 619,000 Plant O&M Manual and SOP Project-Phase 1 4,000,000 329,004 150,000 479,004 3,520,996 �.0 Hazardous Energy Control Procedures 1,190,000 623,778 296,000 919,778 270,222 Contusion Management 7,548,000 136,039 3,761,000 3,897,039 3,650,961 Special Projects: Anoxic Gas Flotation(AGF) 798,000 524,679 268,000 792,679 5.321 Special Projects: Anaerobic Baffled Reactor(ABR) 514,000 51,878 469,000 520,878 (6,878) r Special Projects: Primary Effluent Filtration 470,000 419,428 110,000 529,428 (59,428) Special Projects: Oxygen lonization/Odor Control 210,000 - 210,000 210,000 - Special Projects: Microfiltration/Primary Effluent 4,095,000 2,838,554 595,000 3,433,554 661.446 Special Projects: Dewatering Options Comparison 99,000 - 99,000 99,000 - °'d Special Projects: Biotrickling Filter(BTF) 328,000 399,606 48,000 447,606 (119.606) Special Projects: Ammonia Reduction Options 277,000 - 277,000 277,000 - Subtotal-Process Related Special Projects 21,735,000 5,801.803 7,227,000 13,028.803 8,706,197 01d Miscellaneous&Support Projects Facilities Engineering Projects-Joint 18,200,000 254,903 1,145,000 1,399,903 16,800,097 Facilities Engineering Projects-Plant 1 18,200,000 242,999 1,145,000 1,387,999 16,812,001 Facilities Engineering Projects-Plant 2 18,200,000 293,995 1,145,000 1,438,995 16,761.005 Interim Fac Record&Eng Data Syst Maint Services 628,000 383,568 234.000 617.568 10,432 Supplemental Full Secondary Treatment CEQA Doc 425,000 - 153,000 153,000 272,000 Supplement No.1 to the 1999 Strategic Plan EIR 832.000 316,272 567,000 883,272 (51,272) Long Range Biosolids Management Plan 2,833.000 584.297 2,669,000 3,253,297 (420,297) Strategic Plan Update 3,419.000 360,033 1.420,000 1.780,033 1,638.957 Modifications to Existing Mech Systems 3,007,000 272,215 150,000 422,215 2,584,785 Building Rehabildation/Refurbishment 1,455.000 169 929,000 929,169 525,831 Space Allocation and Interior Renovation 16,388,000 648,491 2,615,000 3,263,491 13,124,509 Laboratory Rehabilitation 1,829,000 - 169,000 169,000 1,660,000 Tenant Improvements to Rebuild Shop 321,000 8,653 89,000 97,653 223.347 Engineering Trailer Complex 2,006.000 1,978,444 166,000 2,144,444 (138,444) Support Building Power System Modifications 2,751,000 - 205.000 205,000 2,546.000 Security System Improvements 1,100.000 1,054.414 569.000 1,623.414 (523,414) Small Cap_Equip.Replacement Project 3,000,000 1,638,532 500,000 2,138,532 861,468 fob Asset Management Program 16,555,000 - 4,226,000 4,226,000 12,329,000 Warehouse Reinvention Project 600,000 83,290 190,000 273.290 326,710 Plume Modeling 377,000 134,764 128,000 262,764 114,236 Plant 2 Maintenance Building Modifications 300.000 - 300,000 300,000 - ,.a Subtotal-Miscellaneous&Support Projects 112,426,000 8,255.039 18.714,000 26,969,039 85,456.961 Water Management Projects Groundwater Replenishment System 236,206,000 15,447,736 43,125,000 58,572,736 177,633.264 wo Water Conservation 4,644,000 2,886,237 506,000 3,392,237 1,251.763 Co-op Projects,Inflow/Infilt.Reduction 72,000,000 - 4,000,000 4,000,000 68,000,000 Long Term Permanent Monitoring Program 2,852,000 4,350,529 713,000 5,063,529 (2,211,529) Subtotal-Water Management Projects 315,702,000 22,684.502 48,344,000 71,028.502 244,673,498 wo Additional Charges to CIP Completed at 6130103 142,178,333 83,124,031 2,992,060 86,116,091 56,062,242 Total Treatment and Disposal Projects 2.124.672,333 244.486,307 161,591,260 406,077,567 1,718,594,766 am Capital Equipment Purchases 4,143,600 - 4,143.600 4,143,600 Total Collections and Treatment&Disposal Projects and Capital Equipment Purchases $2,733,455,658 $280,947,630 $202,672,460 $483,620,690 $2.249,835,568 Section 3- Page 9 No 2003-04 First Quarter Report low 6w This Page Intentionally Left Blank 6w 6w Section 3-Page 10 6W am Budget Review by Revenue Area ow All Revenue Areas Operating and Capital Facilities Budget Review For the Three Months Ended September 30, 2003 .. Operating Budget Review tmd 2003-04 Year-To- Remaining Year-To-Date Budget Date Budget %of Budget CASH RECEIPTS: Tax Allocations/Subventions(Share of 1%) $ 41,200,000 $ 2,909,415 $ 38,290,585 "' Other User Fees 99,277,000 3,694,026 95,582,974 3.72% Connection Fees 9,120,000 1,438,797 7,681.203 15.78% Sale of Capacity Rights 6,195,000 - 6,195,000 0.00% law Capital Assessment(IRWD) 2,259,000 783,298 1,475,702 34.67% Debt Proceeds 280,000,000 280,000,000 - 100.00% Interest& Miscellaneous Revenue 43,534,000 2,699,331 40,834,669 6.20% Total Receipts $ 481,585,000 $291,524,867 $190,060,133 60.53% CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 161.184,000 $ 18,848,852 $142,335,148 11.69% Collection Activity Capital Improvements 38,769,000 5,404,744 33,364,256 13.94% COP Retirement and Interest Expense 36,950,000 15,646,943 21,303,057 42.35% Share of Joint Works Operating Expenses 77,010,000 18,809,198 58,200,802 24.42% Revenue Area Operating &Other Expenses 12,500,000 2,622,526 9,877,474 20.98% Total Disbursements $ 326,413,000 $ 61,332,263 $265,080,737 18.79% bW Capital Facilities Budget Review Balance Adjustments Transfer to Balance 07/01/03 &Additions Fixed Assets 9/30/03 ea CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 33,884,895 $ 5.404,744 $ - $ 39,289,639 Share of Joint Works Treatment Plant CIP 210,329,344 18,848,852 - 229,178.196 tm Subtotal 244,214,239 24,253,596 - 268,467,835 1.0 PROPERTY, PLANT&EQUIPMENT(at cost): Land and Property Rights 10.398,595 - - 10,398.595 Collection Lines and Pump Stations 396,426,189 - - 396,426,189 ,m Treatment Facilities 650,908,862 - - 650,908,862 Disposal Facilities 90,161,860 - - 90,161,860 General Plant and Administrative Facilities 124,120,780 - - 124,120,780 Subtotal 1,272,016,286 - - 1,272,016,286 Total Property, Plant&Equipment&CIP $1,516,230,525 $ 24,253,596 $ - $1,540,484,121 m Section 4- Page 1 2002-03 Third Quarter Report iMO Consolidated Revenue Area Operating and Capital Facilities Budget Review LMJ For the Three Months Ended September 30, 2003 Operating Budget Review 2003-04 Year-To- Remaining Year-to-Date Budget Date Budget %of Budget CASH RECEIPTS: Tax Allocations/Subventions(Share of 1%) $ 41,200,000 $ 2,909,415 $ 38,290,585 7.06% Other User Fees 96,277,000 2,989,271 93,287,729 3.10% Connection Fees 9,120,000 1,438,797 7,681,203 15.78% Sale of Capacity Rights 6,004,000 - 6,004,000 - Capital Assessment(IRWD) - - - - taw Debt Proceeds 280,000,000 280,000,000 - 100.00% Interest& Miscellaneous Revenue 42,079,000 2,670,568 39,408,432 6.35% Total Receipts $ 474,680,000 $290,008,051 $184,671,949 61.10% CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 154,269,000 $ 18,270,192 $135,998,808 11.84% Collection Activity Capital Improvements 38,698,000 5,020,620 33,677,380 12.97% COP Retirement and Interest Expense 36,950,000 15,646,943 21,303,057 42.35% Share of Joint Works Operating Expenses 74,633,000 17,904,819 56,728,181 23.99% Revenue Area Operating &Other Expenses 12,193,000 2,531,122 9,661,878 20.76% Total Disbursements $ 316,743,000 $ 59,373,696 $257,369,304 18.75% woo Capital Facilities Budget Review bw Balance Adjustments Transferto Balance 07/01/03 &Additions Fixed Assets 9/30/03 LOW CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 33,696,471 $ 5,020,620 $ - $ 38,717,091 Share of Joint Works Treatment Plant CIP 203,872,231 18,270,192 - 222,142,423 WW Subtotal 237,568,702 23,290,812 - 260,859,514 PROPERTY, PLANT&EQUIPMENT(at cost: W.J Land and Property Rights 9,891,731 - - 9,891,731 Collection Lines and Pump Stations 367,023,515 - - 367,023,515 Treatment Facilities 630,926,572 - - 630,926,572 Disposal Facilities 87,397,008 - - 87,397,008 General Plant and Administrative Facilities 120,330,717 - - 120,330,717 Subtotal 1,215,569,543 - - 1,215,569,543 Total Property, Plant& Equipment&CIP $1,453,138,245 $ 23,290,812 $ - $1,476.429,057 Section 4- Page 2 aw Budget Review by Revenue Area e.+ Revenue Area No. 14 Operating and Capital Facilities Budget Review For the Three Months Ended September 30, 2003 ..d Operating Budget Review ma 2003-04 Year-To- Remaining Year-To-Date Budget Date Budget %of Budget CASH RECEIPTS: Tax Allocations/Subventions(Share of 1%) $ - $ - $ - N/A 1d Other User Fees 3,000,000 704,755 2,295,245 23.49% Connection Fees - - - N/A Sale of Capacity Rights 191,000 - 191,000 0.00% +� Capital Assessment(IRWD) 2,259,000 783,298 1,475,702 34.67% Debt Proceeds - - - N/A Interest& Miscellaneous Revenue 1,455,000 28,763 1,426,237 1.98% Total Receipts $ 6,905,000 $ 1,516,816 $ 5,388,184 21.97% CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 6,915,000 $ 578,660 $ 6,336,340 8.37% Collection Activity Capital Improvements 71,000 384,124 (313,124) 541.02% COP Retirement and Interest Expense - - - N/A 1d Share of Joint Works Operating Expenses 2,377,000 904,379 1,472,621 38.05% Revenue Area Operating&Other Expenses 307,000 91,404 215,596 29.77% Total Disbursements $ 9,670,000 $ 1,958,567 $ 7,711,433 20.25% Capital Facilities Budget Review Balance Adjustments Transfer to Balance 07/01/03 &Additions Fixed Assets 9130/03 CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 188,424 $ 384,124 $ - $ 572,548 Share of Joint Works Treatment Plant CIP 6,457,113 578,660 - 7,035,773 Subtotal 6,645,537 962,784 - 7,608,321 „CI PROPERTY,PLANT&EQUIPMENT(at cost): Land and Property Rights 506,864 - - 506,864 Collection Lines and Pump Stations 29,402,674 - - 29,402,674 Treatment Facilities 19,982,290 - - 19,982,290 wo Disposal Facilities 2,764,852 - - 2,764,852 General Plant and Administrative Facilities 3,790,063 - - 3,790,063 Subtotal 56,446,743 - - 56,446,743 Total Property, Plant&Equipment&CIP $ 63,092,280 $ 962,784 $ - $ 64,055,064 low Section 4-Page 3 am 2003-04 First Quarter Report Law wri taw ww This Page Intentionally Left Blank bad bw 6w ww ww law Section 4- Page 4 am Self Insurance Review General Liability Fund Budget Review MW For the Three Months Ended September 30,2003 on Percent Actual of Budget Remaining Actual 2003-04 Through Through 2003-04 Through Increase MMI Budget 9130/03 9130/03 Budget 9130/02 (Decrease) Revenues: 'w In-Lieu Premiums $2,200,000 $675,000 30.68% $ 1,525,000 $475,000 $200,000 Interest&Miscellaneous 20,000 191 0.96% 19,809 15,105 (14,914) `m Allocation from Other Funds 500,000 1,456 0.29% 498,544 467 989 Total Revenues 2,720,000 676,647 24.88% 2,043,353 490,572 186,075 Wo Expenses: bod Benefits/Claims 300,000 65,548 21.85% 234,452 8,551 56,997 Contractual Services 1,000 300 30.00% 700 - 300 am Legal Services 325,000 34,611 10.65% 290,389 83,205 (48,594) Professional Services 5,000 - 0.00% 5,000 711 (711) Service Department Allocation 1,550,000 354,498 22.87% 1,195,502 389,214 (34,716) Subtotal 2,181,000 454,957 20.86% 1,726,043 481,681 (26,724) Excess Loss Policy 190,000 97,053 51.08% 92,947 47,464 49,589 Total Expenses 2,371,000 552,010 23.28% 1,818,990 529,145 22,865 Excess Revenue(Expenses) 349,000 124,637 35.71% $ 224,363 (38,573) 163,210 Beginning Reserves 183,800 94,372 301,883 (207,511) Ending Reserves $ 532,800 $219 $,009 $263,310 (44,301) Section 5-Page 1 2003-04 First Quarter Report how Workers'Compensation Fund Budget Review 6W For the Three Months Ended September 30, 2003 6� Percent Actual of Budget Remaining Actual 2003-04 Through Through 2003-04 Through Increase Budget 9130/03 9/30/03 Budget 9/30/02 Decrease Revenues: In-Lieu Premiums $1.000,000 $250,000 25.00% $750,000 $125,000 $125,000 Interest&Miscellaneous 7,000 36 0.51% 6,964 2,877 (2,841) Total Revenues 1,007,000 250,036 24.83% 756,964 127,877 122,159 Expenses: Benefits/Claims 350.000 62,209 17.77% 287,791 64,754 (2,545) Contractual Services 25,000 6,250 25.00% 18,750 6,250 - Legal Services 25,000 2,149 8.60% 22,851 1,575 574 tow Professional Services 25;000 3,350 13.40% 21,650 2,466 884 Service Department Allocations 50,000 3,912 7.82% 46,088 5,964 (2,052) wo Subtotal 475,000 77,870 16.39% 397,130 81,009 (3,139) Excess Loss Policy 105,000 40,171 38.26% 64,829 17,273 22,898 bud Total Expenses 580,000 118,041 20.35% 461,959 98,282 19,759 Excess Revenue(Expenses) 427,000 131,995 30.91% $295,005 29,595 102,400 �, Beginning Reserves 22,900 (32,841) (79,645) 46,804 Ending Reserves $ 449,900 $ 99.154 $(5Q050) $149,204 wow 60 W UW Section 5- Page 2 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 OCSD 9/30/03